QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Boston Properties, Inc. | Delaware | 04-2473675 | ||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |||||||
Boston Properties Limited Partnership | Delaware | 04-3372948 | ||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||
Boston Properties, Inc. | Common Stock, par value $0.01 per share | BXP | New York Stock Exchange |
Boston Properties, Inc. | Common Stock, par value $0.01 per share | |||||||
(Registrant) | (Class) | (Outstanding on November 2, |
Page | ||||||||
ITEM 1. | ||||||||
Boston Properties, Inc. | ||||||||
Boston Properties Limited Partnership | ||||||||
Boston Properties, Inc. and Boston Properties Limited Partnership | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for share and par value amounts) | ||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $6,688,647 and $6,592,019 at September 30, 2021 and December 31, 2020, respectively) | $ | 23,711,400 | $ | 22,969,110 | ||||||||||
Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at September 30, 2021 and December 31, 2020, respectively) | 237,845 | 237,393 | ||||||||||||
Right of use assets - operating leases | 170,085 | 146,406 | ||||||||||||
Less: accumulated depreciation (amounts related to VIEs of $(1,266,516) and $(1,158,548) at September 30, 2021 and December 31, 2020, respectively) | (5,850,397) | (5,534,102) | ||||||||||||
Total real estate | 18,268,933 | 17,818,807 | ||||||||||||
Cash and cash equivalents (amounts related to VIEs of $288,186 and $340,642 at September 30, 2021 and December 31, 2020, respectively) | 1,002,728 | 1,668,742 | ||||||||||||
Cash held in escrows | 79,193 | 50,587 | ||||||||||||
Investments in securities | 41,517 | 39,457 | ||||||||||||
Tenant and other receivables, net (amounts related to VIEs of $8,598 and $10,911 at September 30, 2021 and December 31, 2020, respectively) | 61,269 | 77,411 | ||||||||||||
Related party note receivable, net | 78,144 | 77,552 | ||||||||||||
Notes receivable, net | 19,297 | 18,729 | ||||||||||||
Accrued rental income, net (amounts related to VIEs of $352,291 and $336,594 at September 30, 2021 and December 31, 2020, respectively) | 1,203,840 | 1,122,502 | ||||||||||||
Deferred charges, net (amounts related to VIEs of $174,172 and $183,306 at September 30, 2021 and December 31, 2020, respectively) | 622,807 | 640,085 | ||||||||||||
Prepaid expenses and other assets (amounts related to VIEs of $42,051 and $13,137 at September 30, 2021 and December 31, 2020, respectively) | 97,560 | 33,840 | ||||||||||||
Investments in unconsolidated joint ventures | 1,373,522 | 1,310,478 | ||||||||||||
Total assets | $ | 22,848,810 | $ | 22,858,190 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||
Liabilities: | ||||||||||||||
Mortgage notes payable, net (amounts related to VIEs of $2,898,699 and $2,907,590 at September 30, 2021 and December 31, 2020, respectively) | $ | 2,898,699 | $ | 2,909,081 | ||||||||||
Unsecured senior notes, net | 10,479,651 | 9,639,287 | ||||||||||||
Unsecured line of credit | — | — | ||||||||||||
Unsecured term loan, net | — | 499,390 | ||||||||||||
Lease liabilities - finance leases (amounts related to VIEs of $20,420 and $20,306 at September 30, 2021 and December 31, 2020, respectively) | 243,562 | 236,492 | ||||||||||||
Lease liabilities - operating leases | 204,137 | 201,713 | ||||||||||||
Accounts payable and accrued expenses (amounts related to VIEs of $36,967 and $23,128 at September 30, 2021 and December 31, 2020, respectively) | 331,687 | 336,264 | ||||||||||||
Dividends and distributions payable | 169,739 | 171,082 | ||||||||||||
Accrued interest payable | 87,408 | 106,288 | ||||||||||||
Other liabilities (amounts related to VIEs of $124,615 and $158,805 at September 30, 2021 and December 31, 2020, respectively) | 370,403 | 412,084 | ||||||||||||
Total liabilities | 14,785,286 | 14,511,681 | ||||||||||||
Commitments and contingencies (See Note 9) | ||||||||||||||
Redeemable deferred stock units— 80,989 and 72,966 units outstanding at redemption value at September 30, 2021 and December 31, 2020, respectively | 8,775 | 6,897 |
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for share and par value amounts) | ||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
Equity: | ||||||||||||||
Stockholders’ equity attributable to Boston Properties, Inc.: | ||||||||||||||
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | — | — | ||||||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; | ||||||||||||||
5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 | — | 200,000 | ||||||||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,285,391 and 155,797,725 issued and 156,206,491 and 155,718,825 outstanding at September 30, 2021 and December 31, 2020, respectively | 1,562 | 1,557 | ||||||||||||
Additional paid-in capital | 6,415,802 | 6,356,791 | ||||||||||||
Dividends in excess of earnings | (657,021) | (509,653) | ||||||||||||
Treasury common stock at cost, 78,900 shares at September 30, 2021 and December 31, 2020 | (2,722) | (2,722) | ||||||||||||
Accumulated other comprehensive loss | (40,803) | (49,890) | ||||||||||||
Total stockholders’ equity attributable to Boston Properties, Inc. | 5,716,818 | 5,996,083 | ||||||||||||
Noncontrolling interests: | ||||||||||||||
Common units of Boston Properties Limited Partnership | 609,830 | 616,596 | ||||||||||||
Property partnerships | 1,728,101 | 1,726,933 | ||||||||||||
Total equity | 8,054,749 | 8,339,612 | ||||||||||||
Total liabilities and equity | $ | 22,848,810 | $ | 22,858,190 |
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands, except for share and par value amounts) | |||||||
ASSETS | |||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,084,588 and $6,760,078 at September 30, 2017 and December 31, 2016, respectively) | $ | 20,859,245 | $ | 20,147,263 | |||
Less: accumulated depreciation (amounts related to VIEs of $(825,390) and $(758,640) at September 30, 2017 and December 31, 2016, respectively) | (4,484,798 | ) | (4,222,235 | ) | |||
Total real estate | 16,374,447 | 15,925,028 | |||||
Cash and cash equivalents (amounts related to VIEs of $285,089 and $253,999 at September 30, 2017 and December 31, 2016, respectively) | 493,055 | 356,914 | |||||
Cash held in escrows (amounts related to VIEs of $6,179 and $4,955 at September 30, 2017 and December 31, 2016, respectively) | 83,779 | 63,174 | |||||
Investments in securities | 27,981 | 23,814 | |||||
Tenant and other receivables (amounts related to VIEs of $19,891 and $23,525 at September 30, 2017 and December 31, 2016, respectively) | 79,750 | 92,548 | |||||
Accrued rental income (amounts related to VIEs of $232,336 and $224,185 at September 30, 2017 and December 31, 2016, respectively) | 835,415 | 799,138 | |||||
Deferred charges, net (amounts related to VIEs of $268,727 and $290,436 at September 30, 2017 and December 31, 2016, respectively) | 657,474 | 686,163 | |||||
Prepaid expenses and other assets (amounts related to VIEs of $68,330 and $42,718 at September 30, 2017 and December 31, 2016, respectively) | 144,817 | 129,666 | |||||
Investments in unconsolidated joint ventures | 611,800 | 775,198 | |||||
Total assets | $ | 19,308,518 | $ | 18,851,643 | |||
LIABILITIES AND EQUITY | |||||||
Liabilities: | |||||||
Mortgage notes payable, net (amounts related to VIEs of $2,941,550 and $2,018,483 at September 30, 2017 and December 31, 2016, respectively) | $ | 2,982,067 | $ | 2,063,087 | |||
Unsecured senior notes, net | 7,252,567 | 7,245,953 | |||||
Unsecured line of credit | — | — | |||||
Unsecured term loan | — | — | |||||
Mezzanine notes payable (amounts related to VIEs of $0 and $307,093 at September 30, 2017 and December 31, 2016, respectively) | — | 307,093 | |||||
Outside members’ notes payable (amounts related to VIEs of $0 and $180,000 at September 30, 2017 and December 31, 2016, respectively) | — | 180,000 | |||||
Accounts payable and accrued expenses (amounts related to VIEs of $106,772 and $110,457 at September 30, 2017 and December 31, 2016, respectively) | 325,440 | 298,524 | |||||
Dividends and distributions payable | 130,434 | 130,308 | |||||
Accrued interest payable (amounts related to VIEs of $6,800 and $162,226 at September 30, 2017 and December 31, 2016, respectively) | 99,100 | 243,933 | |||||
Other liabilities (amounts related to VIEs of $146,517 and $175,146 at September 30, 2017 and December 31, 2016, respectively) | 419,215 | 450,821 | |||||
Total liabilities | 11,208,823 | 10,919,719 | |||||
Commitments and contingencies | — | — | |||||
Equity: | |||||||
Stockholders’ equity attributable to Boston Properties, Inc.: | |||||||
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | — | — | |||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; | |||||||
5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at September 30, 2017 and December 31, 2016 | 200,000 | 200,000 | |||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,401,166 and 153,869,075 issued and 154,322,266 and 153,790,175 outstanding at September 30, 2017 and December 31, 2016, respectively | 1,543 | 1,538 | |||||
Additional paid-in capital | 6,370,932 | 6,333,424 | |||||
Dividends in excess of earnings | (692,739 | ) | (693,694 | ) | |||
Treasury common stock at cost, 78,900 shares at September 30, 2017 and December 31, 2016 | (2,722 | ) | (2,722 | ) | |||
Accumulated other comprehensive loss | (51,796 | ) | (52,251 | ) | |||
Total stockholders’ equity attributable to Boston Properties, Inc. | 5,825,218 | 5,786,295 | |||||
Noncontrolling interests: | |||||||
Common units of Boston Properties Limited Partnership | 605,802 | 614,982 | |||||
Property partnerships | 1,668,675 | 1,530,647 | |||||
Total equity | 8,099,695 | 7,931,924 | |||||
Total liabilities and equity | $ | 19,308,518 | $ | 18,851,643 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Lease | $ | 692,260 | $ | 666,674 | $ | 2,062,102 | $ | 2,006,904 | |||||||||||||||||||||
Parking and other | 23,507 | 16,327 | 58,727 | 54,777 | |||||||||||||||||||||||||
Hotel | 5,189 | 90 | 7,382 | 7,014 | |||||||||||||||||||||||||
Development and management services | 6,094 | 7,281 | 20,181 | 23,285 | |||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | |||||||||||||||||||||||||
Total revenue | 730,056 | 693,268 | 2,157,558 | 2,100,597 | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Operating | |||||||||||||||||||||||||||||
Rental | 258,281 | 258,261 | 764,373 | 761,014 | |||||||||||||||||||||||||
Hotel | 3,946 | 3,164 | 7,993 | 11,958 | |||||||||||||||||||||||||
General and administrative | 34,560 | 27,862 | 117,924 | 102,059 | |||||||||||||||||||||||||
Payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | |||||||||||||||||||||||||
Transaction costs | 1,888 | 307 | 2,970 | 1,254 | |||||||||||||||||||||||||
Depreciation and amortization | 179,412 | 166,456 | 539,815 | 515,738 | |||||||||||||||||||||||||
Total expenses | 481,093 | 458,946 | 1,442,241 | 1,400,640 | |||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Loss from unconsolidated joint ventures | (5,597) | (6,873) | (1,745) | (5,410) | |||||||||||||||||||||||||
Gains (losses) on sales of real estate | 348 | (209) | 8,104 | 613,723 | |||||||||||||||||||||||||
Interest and other income (loss) | 1,520 | (45) | 4,140 | 4,277 | |||||||||||||||||||||||||
Gains (losses) from investments in securities | (190) | 1,858 | 3,744 | 965 | |||||||||||||||||||||||||
Losses from early extinguishment of debt | — | — | (898) | — | |||||||||||||||||||||||||
Interest expense | (105,794) | (110,993) | (320,015) | (319,726) | |||||||||||||||||||||||||
Net income | 139,250 | 118,060 | 408,647 | 993,786 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | (18,971) | (15,561) | (52,602) | (34,280) | |||||||||||||||||||||||||
Noncontrolling interest—common units of the Operating Partnership | (11,982) | (10,020) | (35,393) | (97,090) | |||||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. | 108,297 | 92,479 | 320,652 | 862,416 | |||||||||||||||||||||||||
Preferred dividends | — | (2,625) | (2,560) | (7,875) | |||||||||||||||||||||||||
Preferred stock redemption charge | — | — | (6,412) | — | |||||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 108,297 | $ | 89,854 | $ | 311,680 | $ | 854,541 | |||||||||||||||||||||
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||||||||||||||||||||||||
Net income | $ | 0.69 | $ | 0.58 | $ | 2.00 | $ | 5.49 | |||||||||||||||||||||
Weighted average number of common shares outstanding | 156,183 | 155,645 | 156,062 | 155,349 | |||||||||||||||||||||||||
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||||||||||||||||||||||||
Net income | $ | 0.69 | $ | 0.58 | $ | 1.99 | $ | 5.49 | |||||||||||||||||||||
Weighted average number of common and common equivalent shares outstanding | 156,598 | 155,670 | 156,394 | 155,447 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||
Revenue | |||||||||||||||
Rental | |||||||||||||||
Base rent | $ | 513,269 | $ | 489,312 | $ | 1,537,373 | $ | 1,518,826 | |||||||
Recoveries from tenants | 94,476 | 92,560 | 272,803 | 267,852 | |||||||||||
Parking and other | 26,092 | 24,638 | 78,164 | 75,576 | |||||||||||
Total rental revenue | 633,837 | 606,510 | 1,888,340 | 1,862,254 | |||||||||||
Hotel revenue | 13,064 | 12,354 | 33,859 | 33,919 | |||||||||||
Development and management services | 10,811 | 6,364 | 24,648 | 18,586 | |||||||||||
Total revenue | 657,712 | 625,228 | 1,946,847 | 1,914,759 | |||||||||||
Expenses | |||||||||||||||
Operating | |||||||||||||||
Rental | 237,341 | 228,560 | 696,082 | 665,670 | |||||||||||
Hotel | 8,447 | 8,118 | 23,942 | 23,730 | |||||||||||
General and administrative | 25,792 | 25,165 | 84,319 | 79,936 | |||||||||||
Transaction costs | 239 | 249 | 572 | 1,187 | |||||||||||
Impairment loss | — | 1,783 | — | 1,783 | |||||||||||
Depreciation and amortization | 152,164 | 203,748 | 463,288 | 516,371 | |||||||||||
Total expenses | 423,983 | 467,623 | 1,268,203 | 1,288,677 | |||||||||||
Operating income | 233,729 | 157,605 | 678,644 | 626,082 | |||||||||||
Other income (expense) | |||||||||||||||
Income from unconsolidated joint ventures | 843 | 1,464 | 7,035 | 5,489 | |||||||||||
Interest and other income | 1,329 | 3,628 | 3,447 | 6,657 | |||||||||||
Gains from investments in securities | 944 | 976 | 2,716 | 1,713 | |||||||||||
Gains (losses) from early extinguishments of debt | — | (371 | ) | 14,354 | (371 | ) | |||||||||
Losses from interest rate contracts | — | (140 | ) | — | (140 | ) | |||||||||
Interest expense | (92,032 | ) | (104,641 | ) | (282,709 | ) | (314,953 | ) | |||||||
Income before gains on sales of real estate | 144,813 | 58,521 | 423,487 | 324,477 | |||||||||||
Gains on sales of real estate | 2,891 | 12,983 | 6,791 | 80,606 | |||||||||||
Net income | 147,704 | 71,504 | 430,278 | 405,083 | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||
Noncontrolling interests in property partnerships | (14,340 | ) | 17,225 | (33,967 | ) | (53 | ) | ||||||||
Noncontrolling interest—common units of Boston Properties Limited Partnership | (13,402 | ) | (9,387 | ) | (40,350 | ) | (42,120 | ) | |||||||
Net income attributable to Boston Properties, Inc. | 119,962 | 79,342 | 355,961 | 362,910 | |||||||||||
Preferred dividends | (2,625 | ) | (2,589 | ) | (7,875 | ) | (7,796 | ) | |||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,337 | $ | 76,753 | $ | 348,086 | $ | 355,114 | |||||||
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||||||||||
Net income | $ | 0.76 | $ | 0.50 | $ | 2.26 | $ | 2.31 | |||||||
Weighted average number of common shares outstanding | 154,355 | 153,754 | 154,132 | 153,681 | |||||||||||
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||||||||||
Net income | $ | 0.76 | $ | 0.50 | $ | 2.26 | $ | 2.31 | |||||||
Weighted average number of common and common equivalent shares outstanding | 154,483 | 154,136 | 154,344 | 153,971 | |||||||||||
Dividends per common share | $ | 0.75 | $ | 0.65 | $ | 2.25 | $ | 1.95 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 147,704 | $ | 71,504 | $ | 430,278 | $ | 405,083 | Net income | $ | 139,250 | $ | 118,060 | $ | 408,647 | $ | 993,786 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | 5,712 | (6,133 | ) | (85,285 | ) | Effective portion of interest rate contracts | 1,088 | 1,027 | 5,482 | (9,352) | ||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts (1) | 1,665 | 1,190 | 4,368 | 2,445 | Amortization of interest rate contracts (1) | 1,676 | 1,677 | 5,028 | 5,020 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,665 | 6,902 | (1,765 | ) | (82,840 | ) | Other comprehensive income (loss) | 2,764 | 2,704 | 10,510 | (4,332) | ||||||||||||||||||||||||||||||||||||
Comprehensive income | 149,369 | 78,406 | 428,513 | 322,243 | Comprehensive income | 142,014 | 120,764 | 419,157 | 989,454 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (27,742 | ) | 7,838 | (74,317 | ) | (42,173 | ) | Net income attributable to noncontrolling interests | (30,953) | (25,581) | (87,995) | (131,370) | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) attributable to noncontrolling interests | (300 | ) | (1,097 | ) | 2,220 | 23,011 | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive (income) loss attributable to noncontrolling interests | Other comprehensive (income) loss attributable to noncontrolling interests | (401) | (405) | (1,423) | 45 | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Boston Properties, Inc. | $ | 121,327 | $ | 85,147 | $ | 356,416 | $ | 303,081 | Comprehensive income attributable to Boston Properties, Inc. | $ | 110,660 | $ | 94,778 | $ | 329,739 | $ | 858,129 |
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF EQUITY (unaudited and in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Additional Paid-in Capital | Dividends in Excess of Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Common Units | Noncontrolling Interests - Property Partnerships | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, June 30, 2021 | 156,136 | $ | 1,561 | $ | — | $ | 6,405,916 | $ | (612,247) | $ | (2,722) | $ | (43,166) | $ | 615,308 | $ | 1,725,343 | $ | 8,089,993 | ||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 50 | 1 | — | 1,747 | — | — | — | (1,748) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | — | — | 108,308 | — | — | 11,971 | 18,971 | 139,250 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (153,082) | — | — | (17,203) | — | (170,285) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 4 | — | — | 520 | — | — | — | — | — | 520 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | 16 | — | — | 1,185 | — | — | — | 7,679 | — | 8,864 | |||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 11,318 | 11,318 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (27,675) | (27,675) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | 981 | 107 | — | 1,088 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 1,382 | 150 | 144 | 1,676 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 6,434 | — | — | — | (6,434) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2021 | 156,206 | $ | 1,562 | $ | — | $ | 6,415,802 | $ | (657,021) | $ | (2,722) | $ | (40,803) | $ | 609,830 | $ | 1,728,101 | $ | 8,054,749 | ||||||||||||||||||||||||||||||||||||||||
Equity, June 30, 2020 | 155,622 | $ | 1,556 | $ | 200,000 | $ | 6,340,665 | $ | (302,511) | $ | (2,722) | $ | (54,921) | $ | 640,491 | $ | 1,724,588 | 8,547,146 | |||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 9 | — | — | 338 | — | — | — | (338) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | — | — | 92,934 | — | — | 9,565 | 15,561 | 118,060 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (155,143) | — | — | (17,183) | — | (172,326) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 5 | — | — | 434 | — | — | — | — | — | 434 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | — | — | — | 1,390 | — | — | — | 7,249 | — | 8,639 | |||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 1,407 | 1,407 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (11,026) | (11,026) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | 917 | 110 | — | 1,027 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 1,382 | 151 | 144 | 1,677 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 5,249 | — | — | — | (5,249) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2020 | 155,636 | $ | 1,556 | $ | 200,000 | $ | 6,348,076 | $ | (364,720) | $ | (2,722) | $ | (52,622) | $ | 634,796 | $ | 1,730,674 | $ | 8,495,038 |
Common Stock | Preferred Stock | Additional Paid-in Capital | Dividends in Excess of Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||
Equity, December 31, 2016 | 153,790 | $ | 1,538 | $ | 200,000 | $ | 6,333,424 | $ | (693,694 | ) | $ | (2,722 | ) | $ | (52,251 | ) | $ | 2,145,629 | $ | 7,931,924 | ||||||||||||||
Redemption of operating partnership units to common stock | 492 | 5 | — | 16,807 | — | — | — | (16,812 | ) | — | ||||||||||||||||||||||||
Allocated net income for the year | — | — | — | — | 355,961 | — | — | 74,317 | 430,278 | |||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (354,734 | ) | — | — | (40,292 | ) | (395,026 | ) | ||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 6 | — | — | 795 | — | — | — | — | 795 | |||||||||||||||||||||||||
Net activity from stock option and incentive plan | 34 | — | — | 2,920 | — | — | — | 26,271 | 29,191 | |||||||||||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | — | (272 | ) | — | — | (1,763 | ) | (2,035 | ) | ||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | 147,772 | 147,772 | |||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (41,439 | ) | (41,439 | ) | |||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | (3,304 | ) | (2,829 | ) | (6,133 | ) | ||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 3,759 | 609 | 4,368 | |||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 16,986 | — | — | — | (16,986 | ) | — | ||||||||||||||||||||||||
Equity, September 30, 2017 | 154,322 | $ | 1,543 | $ | 200,000 | $ | 6,370,932 | $ | (692,739 | ) | $ | (2,722 | ) | $ | (51,796 | ) | $ | 2,274,477 | $ | 8,099,695 | ||||||||||||||
Equity, December 31, 2015 | 153,580 | $ | 1,536 | $ | 200,000 | $ | 6,305,687 | $ | (780,952 | ) | $ | (2,722 | ) | $ | (14,114 | ) | $ | 2,177,492 | $ | 7,886,927 | ||||||||||||||
Redemption of operating partnership units to common stock | 173 | 2 | — | 5,879 | — | — | — | (5,881 | ) | — | ||||||||||||||||||||||||
Allocated net income for the year | — | — | — | — | 362,910 | — | — | 42,173 | 405,083 | |||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (307,480 | ) | — | — | (35,500 | ) | (342,980 | ) | ||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 6 | — | — | 730 | — | — | — | — | 730 | |||||||||||||||||||||||||
Net activity from stock option and incentive plan | 14 | — | — | 2,870 | — | — | — | 21,420 | 24,290 | |||||||||||||||||||||||||
Sale of interests in property partnerships | — | — | — | 1,320 | — | — | — | (1,320 | ) | — | ||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | 6,737 | 6,737 | |||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (38,694 | ) | (38,694 | ) | |||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | (62,022 | ) | (23,263 | ) | (85,285 | ) | ||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 2,193 | 252 | 2,445 | |||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 10,094 | — | — | — | (10,094 | ) | — | ||||||||||||||||||||||||
Equity, September 30, 2016 | 153,773 | $ | 1,538 | $ | 200,000 | $ | 6,326,580 | $ | (725,522 | ) | $ | (2,722 | ) | $ | (73,943 | ) | $ | 2,133,322 | $ | 7,859,253 |
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF EQUITY (unaudited and in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Additional Paid-in Capital | Dividends in Excess of Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Common Units | Noncontrolling Interests - Property Partnerships | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity, December 31, 2020 | 155,719 | $ | 1,557 | $ | 200,000 | $ | 6,356,791 | $ | (509,653) | $ | (2,722) | $ | (49,890) | $ | 616,596 | $ | 1,726,933 | $ | 8,339,612 | ||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 227 | 2 | — | 8,031 | — | — | — | (8,033) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | — | — | 320,652 | — | — | 35,393 | 52,602 | 408,647 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (461,608) | — | — | (51,743) | — | (513,351) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 9 | — | — | 1,004 | — | — | — | — | — | 1,004 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | 251 | 3 | — | 20,893 | — | — | — | 39,332 | — | 60,228 | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock redemption | — | — | (200,000) | 6,377 | — | — | — | — | — | (193,623) | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock redemption charge | — | — | — | — | (6,412) | — | — | — | — | (6,412) | |||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 13,738 | 13,738 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (65,604) | (65,604) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | 4,943 | 539 | — | 5,482 | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 4,144 | 452 | 432 | 5,028 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 22,706 | — | — | — | (22,706) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2021 | 156,206 | $ | 1,562 | $ | — | $ | 6,415,802 | $ | (657,021) | $ | (2,722) | $ | (40,803) | $ | 609,830 | $ | 1,728,101 | $ | 8,054,749 | ||||||||||||||||||||||||||||||||||||||||
Equity, December 31, 2019 | 154,790 | $ | 1,548 | $ | 200,000 | $ | 6,294,719 | $ | (760,523) | $ | (2,722) | $ | (48,335) | $ | 600,860 | $ | 1,728,689 | $ | 8,014,236 | ||||||||||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | — | (1,505) | — | — | (174) | — | (1,679) | |||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 774 | 8 | — | 26,674 | — | — | — | (26,682) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | — | — | 862,416 | — | — | 97,090 | 34,280 | 993,786 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (465,108) | — | — | (51,821) | — | (516,929) | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 7 | — | — | 759 | — | — | — | — | — | 759 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | 65 | — | — | 9,646 | — | — | — | 32,278 | — | 41,924 | |||||||||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 7,364 | 7,364 | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (40,091) | (40,091) | |||||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | (8,416) | (936) | — | (9,352) | |||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 4,129 | 459 | 432 | 5,020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 16,278 | — | — | — | (16,278) | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2020 | 155,636 | $ | 1,556 | $ | 200,000 | $ | 6,348,076 | $ | (364,720) | $ | (2,722) | $ | (52,622) | $ | 634,796 | $ | 1,730,674 | $ | 8,495,038 |
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 408,647 | $ | 993,786 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 539,815 | 515,738 | |||||||||||||||
Amortization of right of use assets - operating leases | 3,208 | 1,667 | |||||||||||||||
Non-cash compensation expense | 43,098 | 36,152 | |||||||||||||||
Loss from unconsolidated joint ventures | 1,745 | 5,410 | |||||||||||||||
Distributions of net cash flow from operations of unconsolidated joint ventures | 18,462 | 22,285 | |||||||||||||||
Gains from investments in securities | (3,744) | (965) | |||||||||||||||
Allowance for current expected credit losses | (758) | 1,997 | |||||||||||||||
Non-cash portion of interest expense | 17,584 | 17,397 | |||||||||||||||
Settlement of accreted debt discount on redemption of unsecured senior notes | (6,290) | — | |||||||||||||||
Losses from early extinguishments of debt | 898 | — | |||||||||||||||
Gains on sales of real estate | (8,104) | (613,723) | |||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Tenant and other receivables, net | 13,738 | 18,543 | |||||||||||||||
Notes receivable, net | (419) | (395) | |||||||||||||||
Accrued rental income, net | (74,283) | (85,843) | |||||||||||||||
Prepaid expenses and other assets | (61,019) | (60,365) | |||||||||||||||
Lease liabilities - operating leases | (24,023) | 1,157 | |||||||||||||||
Accounts payable and accrued expenses | 26,097 | 8,273 | |||||||||||||||
Accrued interest payable | (18,237) | (1,202) | |||||||||||||||
Other liabilities | (51,938) | (24,868) | |||||||||||||||
Tenant leasing costs | (37,618) | (52,621) | |||||||||||||||
Total adjustments | 378,212 | (211,363) | |||||||||||||||
Net cash provided by operating activities | 786,859 | 782,423 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Acquisitions of real estate | (218,679) | (135,698) | |||||||||||||||
Construction in progress | (381,104) | (358,824) | |||||||||||||||
Building and other capital improvements | (103,840) | (116,894) | |||||||||||||||
Tenant improvements | (218,878) | (172,401) | |||||||||||||||
Proceeds from sales of real estate | — | 505,679 | |||||||||||||||
Capital contributions to unconsolidated joint ventures | (95,462) | (158,374) | |||||||||||||||
Capital distributions from unconsolidated joint ventures | 122 | 55,123 | |||||||||||||||
Issuance of notes receivable, net | — | (9,800) | |||||||||||||||
Proceeds from sale of investment in unconsolidated joint venture | 17,789 | — | |||||||||||||||
Investments in securities, net | 1,684 | 2,778 | |||||||||||||||
Net cash used in investing activities | (998,368) | (388,411) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayments of mortgage notes payable | (13,261) | (12,795) | |||||||||||||||
Proceeds from unsecured senior notes | 1,695,996 | 1,248,125 | |||||||||||||||
Redemption of unsecured senior notes | (843,710) | — | |||||||||||||||
Borrowings on unsecured line of credit | 300,000 | 265,000 | |||||||||||||||
Repayments of unsecured line of credit | (300,000) | (265,000) |
For the nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 430,278 | $ | 405,083 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 463,288 | 516,371 | |||||
Impairment loss | — | 1,783 | |||||
Non-cash compensation expense | 27,260 | 25,290 | |||||
Income from unconsolidated joint ventures | (7,035 | ) | (5,489 | ) | |||
Distributions of net cash flow from operations of unconsolidated joint ventures | 8,563 | 11,645 | |||||
Gains from investments in securities | (2,716 | ) | (1,713 | ) | |||
(Gains) losses from early extinguishments of debt | (14,444 | ) | 371 | ||||
Non-cash portion of interest expense | (6,667 | ) | (27,386 | ) | |||
Gains on sales of real estate | (6,791 | ) | (80,606 | ) | |||
Change in assets and liabilities: | |||||||
Cash held in escrows | 7,795 | 1,675 | |||||
Tenant and other receivables, net | 12,528 | 22,135 | |||||
Accrued rental income, net | (36,012 | ) | (14,618 | ) | |||
Prepaid expenses and other assets | (13,633 | ) | 4,883 | ||||
Accounts payable and accrued expenses | 7,861 | 16,852 | |||||
Accrued interest payable | (144,833 | ) | 44,242 | ||||
Other liabilities | (65,031 | ) | (114,321 | ) | |||
Tenant leasing costs | (67,699 | ) | (62,412 | ) | |||
Total adjustments | 162,434 | 338,702 | |||||
Net cash provided by operating activities | 592,712 | 743,785 | |||||
Cash flows from investing activities: | |||||||
Acquisitions of real estate | (15,953 | ) | (78,000 | ) | |||
Construction in progress | (452,283 | ) | (359,716 | ) | |||
Building and other capital improvements | (162,395 | ) | (81,842 | ) | |||
Tenant improvements | (152,749 | ) | (167,762 | ) | |||
Proceeds from sales of real estate | 29,810 | 122,750 | |||||
Proceeds from sales of real estate placed in escrow | (29,810 | ) | (122,647 | ) | |||
Proceeds from sales of real estate released from escrow | 16,640 | 122,647 | |||||
Cash released from escrow for investing activities | 9,638 | 6,694 | |||||
Cash released from escrow for land sale contracts | — | 1,403 | |||||
Cash placed in escrow for investment in unconsolidated joint venture | (25,000 | ) | — | ||||
Capital contributions to unconsolidated joint ventures | (89,874 | ) | (546,982 | ) | |||
Capital distributions from unconsolidated joint ventures | 251,000 | — | |||||
Investments in securities, net | (1,451 | ) | (929 | ) | |||
Net cash used in investing activities | (622,427 | ) | (1,104,384 | ) | |||
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Repayment of unsecured term loan | (500,000) | — | |||||||||||||||
Redemption of preferred stock | (200,000) | — | |||||||||||||||
Payments on finance lease obligations | 1,250 | — | |||||||||||||||
Deferred financing costs | (20,770) | (10,416) | |||||||||||||||
Debt prepayment and extinguishment costs | (185) | — | |||||||||||||||
Net proceeds from equity transactions | 20,028 | 3,276 | |||||||||||||||
Dividends and distributions | (513,381) | (516,572) | |||||||||||||||
Contributions from noncontrolling interests in property partnerships | 13,738 | 7,364 | |||||||||||||||
Distributions to noncontrolling interests in property partnerships | (65,604) | (40,091) | |||||||||||||||
Net cash provided by (used in) financing activities | (425,899) | 678,891 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents and cash held in escrows | (637,408) | 1,072,903 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, beginning of period | 1,719,329 | 691,886 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 1,081,921 | $ | 1,764,789 | |||||||||||||
Reconciliation of cash and cash equivalents and cash held in escrows: | |||||||||||||||||
Cash and cash equivalents, beginning of period | $ | 1,668,742 | $ | 644,950 | |||||||||||||
Cash held in escrows, beginning of period | 50,587 | 46,936 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, beginning of period | $ | 1,719,329 | $ | 691,886 | |||||||||||||
Cash and cash equivalents, end of period | $ | 1,002,728 | $ | 1,714,783 | |||||||||||||
Cash held in escrows, end of period | 79,193 | 50,006 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 1,081,921 | $ | 1,764,789 | |||||||||||||
Supplemental disclosures: | |||||||||||||||||
Cash paid for interest | $ | 358,015 | $ | 335,591 | |||||||||||||
Interest capitalized | $ | 36,632 | $ | 41,329 | |||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Write-off of fully depreciated real estate | $ | (159,108) | $ | (73,584) | |||||||||||||
Change in real estate included in accounts payable and accrued expenses | $ | (22,104) | $ | (30,924) | |||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 26,887 | $ | — | |||||||||||||
Accrued rental income, net deconsolidated | $ | — | $ | (4,558) | |||||||||||||
Tenant leasing costs, net deconsolidated | $ | — | $ | (3,462) | |||||||||||||
Building and other capital improvements, net deconsolidated | $ | — | $ | (111,889) | |||||||||||||
Tenant improvements, net deconsolidated | $ | — | $ | (12,331) | |||||||||||||
Investment in unconsolidated joint venture recorded upon deconsolidation | $ | — | $ | 347,898 | |||||||||||||
Dividends and distributions declared but not paid | $ | 169,739 | $ | 171,070 | |||||||||||||
Conversions of noncontrolling interests to stockholders’ equity | $ | 8,033 | $ | 26,682 | |||||||||||||
Issuance of restricted securities to employees and non-employee directors | $ | 44,257 | $ | 43,244 |
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash flows from financing activities: | |||||||
Proceeds from mortgage notes payable | 2,300,000 | — | |||||
Repayments of mortgage notes payable | (1,313,890 | ) | (1,323,284 | ) | |||
Proceeds from unsecured senior notes | — | 1,989,790 | |||||
Borrowings on unsecured line of credit | 470,000 | — | |||||
Repayments of unsecured line of credit | (470,000 | ) | — | ||||
Repayments of mezzanine notes payable | (306,000 | ) | — | ||||
Repayments of outside members’ notes payable | (70,424 | ) | — | ||||
Payments on capital lease obligations | (373 | ) | — | ||||
Payments on real estate financing transactions | (1,306 | ) | (4,712 | ) | |||
Deposit on mortgage note payable interest rate lock | (23,200 | ) | — | ||||
Return of deposit on mortgage note payable interest rate lock | 23,200 | — | |||||
Deferred financing costs | (44,083 | ) | (16,101 | ) | |||
Net proceeds from equity transactions | 241 | (270 | ) | ||||
Dividends and distributions | (394,900 | ) | (557,262 | ) | |||
Contributions from noncontrolling interests in property partnerships | 38,196 | 6,737 | |||||
Distributions to noncontrolling interests in property partnerships | (41,605 | ) | (38,694 | ) | |||
Net cash provided by financing activities | 165,856 | 56,204 | |||||
Net increase (decrease) in cash and cash equivalents | 136,141 | (304,395 | ) | ||||
Cash and cash equivalents, beginning of period | 356,914 | 723,718 | |||||
Cash and cash equivalents, end of period | $ | 493,055 | $ | 419,323 | |||
Supplemental disclosures: | |||||||
Cash paid for interest | $ | 477,189 | $ | 327,053 | |||
Interest capitalized | $ | 43,286 | $ | 28,956 | |||
Non-cash investing and financing activities: | |||||||
Write-off of fully depreciated real estate | $ | (103,972 | ) | $ | (168,861 | ) | |
Additions to real estate included in accounts payable and accrued expenses | $ | 36,609 | $ | 11,864 | |||
Real estate acquired through capital lease | $ | 28,962 | $ | — | |||
Outside members’ notes payable contributed to noncontrolling interests in property partnerships | $ | 109,576 | $ | — | |||
Dividends and distributions declared but not paid | $ | 130,434 | $ | 113,038 | |||
Conversions of noncontrolling interests to stockholders’ equity | $ | 16,812 | $ | 5,881 | |||
Issuance of restricted securities to employees | $ | 35,711 | $ | 33,711 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for unit amounts) | ||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
ASSETS | ||||||||||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $6,688,647 and $6,592,019 at September 30, 2021 and December 31, 2020, respectively) | $ | 23,335,905 | $ | 22,592,301 | ||||||||||
Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at September 30, 2021 and December 31, 2020, respectively) | 237,845 | 237,393 | ||||||||||||
Right of use assets - operating leases | 170,085 | 146,406 | ||||||||||||
Less: accumulated depreciation (amounts related to VIEs of $(1,266,516) and $(1,158,548) at September 30, 2021 and December 31, 2020, respectively) | (5,739,625) | (5,428,576) | ||||||||||||
Total real estate | 18,004,210 | 17,547,524 | ||||||||||||
Cash and cash equivalents (amounts related to VIEs of $288,186 and $340,642 at September 30, 2021 and December 31, 2020, respectively) | 1,002,728 | 1,668,742 | ||||||||||||
Cash held in escrows | 79,193 | 50,587 | ||||||||||||
Investments in securities | 41,517 | 39,457 | ||||||||||||
Tenant and other receivables, net (amounts related to VIEs of $8,598 and $10,911 at September 30, 2021 and December 31, 2020, respectively) | 61,269 | 77,411 | ||||||||||||
Related party note receivable, net | 78,144 | 77,552 | ||||||||||||
Notes receivable, net | 19,297 | 18,729 | ||||||||||||
Accrued rental income, net (amounts related to VIEs of $352,291 and $336,594 at September 30, 2021 and December 31, 2020, respectively) | 1,203,840 | 1,122,502 | ||||||||||||
Deferred charges, net (amounts related to VIEs of $174,172 and $183,306 at September 30, 2021 and December 31, 2020, respectively) | 622,807 | 640,085 | ||||||||||||
Prepaid expenses and other assets (amounts related to VIEs of $42,051 and $13,137 at September 30, 2021 and December 31, 2020, respectively) | 97,560 | 33,840 | ||||||||||||
Investments in unconsolidated joint ventures | 1,373,522 | 1,310,478 | ||||||||||||
Total assets | $ | 22,584,087 | $ | 22,586,907 | ||||||||||
LIABILITIES AND CAPITAL | ||||||||||||||
Liabilities: | ||||||||||||||
Mortgage notes payable, net (amounts related to VIEs of $2,898,699 and $2,907,590 at September 30, 2021 and December 31, 2020, respectively) | $ | 2,898,699 | $ | 2,909,081 | ||||||||||
Unsecured senior notes, net | 10,479,651 | 9,639,287 | ||||||||||||
Unsecured line of credit | — | — | ||||||||||||
Unsecured term loan, net | — | 499,390 | ||||||||||||
Lease liabilities - finance leases (amounts related to VIEs of $20,420 and $20,306 at September 30, 2021 and December 31, 2020, respectively) | 243,562 | 236,492 | ||||||||||||
Lease liabilities - operating leases | 204,137 | 201,713 | ||||||||||||
Accounts payable and accrued expenses (amounts related to VIEs of $36,967 and $23,128 at September 30, 2021 and December 31, 2020, respectively) | 331,687 | 336,264 | ||||||||||||
Dividends and distributions payable | 169,739 | 171,082 | ||||||||||||
Accrued interest payable | 87,408 | 106,288 | ||||||||||||
Other liabilities (amounts related to VIEs of $124,615 and $158,805 at September 30, 2021 and December 31, 2020, respectively) | 370,403 | 412,084 | ||||||||||||
Total liabilities | 14,785,286 | 14,511,681 | ||||||||||||
Commitments and contingencies (See Note 9) | ||||||||||||||
Redeemable deferred stock units— 80,989 and 72,966 units outstanding at redemption value at September 30, 2021 and December 31, 2020, respectively | 8,775 | 6,897 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands, except for unit amounts) | |||||||
ASSETS | |||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,084,588 and $6,760,078 at September 30, 2017 and December 31, 2016, respectively) | $ | 20,447,767 | $ | 19,733,872 | |||
Less: accumulated depreciation (amounts related to VIEs of $(825,390) and $(758,640) at September 30, 2017 and December 31, 2016, respectively) | (4,394,077 | ) | (4,136,364 | ) | |||
Total real estate | 16,053,690 | 15,597,508 | |||||
Cash and cash equivalents (amounts related to VIEs of $285,089 and $253,999 at September 30, 2017 and December 31, 2016, respectively) | 493,055 | 356,914 | |||||
Cash held in escrows (amounts related to VIEs of $6,179 and $4,955 at September 30, 2017 and December 31, 2016, respectively) | 83,779 | 63,174 | |||||
Investments in securities | 27,981 | 23,814 | |||||
Tenant and other receivables (amounts related to VIEs of $19,891 and $23,525 at September 30, 2017 and December 31, 2016, respectively) | 79,750 | 92,548 | |||||
Accrued rental income (amounts related to VIEs of $232,336 and $224,185 at September 30, 2017 and December 31, 2016, respectively) | 835,415 | 799,138 | |||||
Deferred charges, net (amounts related to VIEs of $268,727 and $290,436 at September 30, 2017 and December 31, 2016, respectively) | 657,474 | 686,163 | |||||
Prepaid expenses and other assets (amounts related to VIEs of $68,330 and $42,718 at September 30, 2017 and December 31, 2016, respectively) | 144,817 | 129,666 | |||||
Investments in unconsolidated joint ventures | 611,800 | 775,198 | |||||
Total assets | $ | 18,987,761 | $ | 18,524,123 | |||
LIABILITIES AND CAPITAL | |||||||
Liabilities: | |||||||
Mortgage notes payable, net (amounts related to VIEs of $2,941,550 and $2,018,483 at September 30, 2017 and December 31, 2016, respectively) | $ | 2,982,067 | $ | 2,063,087 | |||
Unsecured senior notes, net | 7,252,567 | 7,245,953 | |||||
Unsecured line of credit | — | — | |||||
Unsecured term loan | — | — | |||||
Mezzanine notes payable (amounts related to VIEs of $0 and $307,093 at September 30, 2017 and December 31, 2016, respectively) | — | 307,093 | |||||
Outside members’ notes payable (amounts related to VIEs of $0 and $180,000 at September 30, 2017 and December 31, 2016, respectively) | — | 180,000 | |||||
Accounts payable and accrued expenses (amounts related to VIEs of $106,772 and $110,457 at September 30, 2017 and December 31, 2016, respectively) | 325,440 | 298,524 | |||||
Distributions payable | 130,434 | 130,308 | |||||
Accrued interest payable (amounts related to VIEs of $6,800 and $162,226 at September 30, 2017 and December 31, 2016, respectively) | 99,100 | 243,933 | |||||
Other liabilities (amounts related to VIEs of $146,517 and $175,146 at September 30, 2017 and December 31, 2016, respectively) | 419,215 | 450,821 | |||||
Total liabilities | 11,208,823 | 10,919,719 | |||||
Commitments and contingencies | — | — | |||||
Noncontrolling interests: | |||||||
Redeemable partnership units—16,812,329 and 17,079,511 common units and 816,982 and 904,588 long term incentive units outstanding at redemption value at September 30, 2017 and December 31, 2016, respectively | 2,166,290 | 2,262,040 | |||||
Capital: | |||||||
5.25% Series B cumulative redeemable preferred units, liquidation preference $2,500 per unit, 80,000 units issued and outstanding at September 30, 2017 and December 31, 2016 | 193,623 | 193,623 | |||||
Boston Properties Limited Partnership partners’ capital—1,719,516 and 1,717,743 general partner units and 152,602,750 and 152,072,432 limited partner units outstanding at September 30, 2017 and December 31, 2016, respectively | 3,750,350 | 3,618,094 | |||||
Noncontrolling interests in property partnerships | 1,668,675 | 1,530,647 | |||||
Total capital | 5,612,648 | 5,342,364 | |||||
Total liabilities and capital | $ | 18,987,761 | $ | 18,524,123 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (unaudited and in thousands, except for unit amounts) | ||||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
Noncontrolling interests: | ||||||||||||||
Redeemable partnership units— 15,989,304 and 16,037,121 common units and 1,487,492 and 1,336,115 long term incentive units outstanding at redemption value at September 30, 2021 and December 31, 2020, respectively | 1,893,611 | 1,643,024 | ||||||||||||
Capital: | ||||||||||||||
5.25% Series B cumulative redeemable preferred units, liquidation preference $2,500 per unit, 80,000 units issued and outstanding at December 31, 2020 | — | 193,623 | ||||||||||||
Boston Properties Limited Partnership partners’ capital— 1,736,833 and 1,730,921 general partner units and 154,469,658 and 153,987,904 limited partner units outstanding at September 30, 2021 and December 31, 2020, respectively | 4,209,117 | 4,554,639 | ||||||||||||
Accumulated other comprehensive loss | (40,803) | (49,890) | ||||||||||||
Total partners’ capital | 4,168,314 | 4,698,372 | ||||||||||||
Noncontrolling interests in property partnerships | 1,728,101 | 1,726,933 | ||||||||||||
Total capital | 5,896,415 | 6,425,305 | ||||||||||||
Total liabilities and capital | $ | 22,584,087 | $ | 22,586,907 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||
Lease | $ | 692,260 | $ | 666,674 | $ | 2,062,102 | $ | 2,006,904 | |||||||||||||||||||||
Parking and other | 23,507 | 16,327 | 58,727 | 54,777 | |||||||||||||||||||||||||
Hotel | 5,189 | 90 | 7,382 | 7,014 | |||||||||||||||||||||||||
Development and management services | 6,094 | 7,281 | 20,181 | 23,285 | |||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | |||||||||||||||||||||||||
Total revenue | 730,056 | 693,268 | 2,157,558 | 2,100,597 | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Operating | |||||||||||||||||||||||||||||
Rental | 258,281 | 258,261 | 764,373 | 761,014 | |||||||||||||||||||||||||
Hotel | 3,946 | 3,164 | 7,993 | 11,958 | |||||||||||||||||||||||||
General and administrative | 34,560 | 27,862 | 117,924 | 102,059 | |||||||||||||||||||||||||
Payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | |||||||||||||||||||||||||
Transaction costs | 1,888 | 307 | 2,970 | 1,254 | |||||||||||||||||||||||||
Depreciation and amortization | 177,677 | 164,706 | 533,255 | 510,400 | |||||||||||||||||||||||||
Total expenses | 479,358 | 457,196 | 1,435,681 | 1,395,302 | |||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Loss from unconsolidated joint ventures | (5,597) | (6,873) | (1,745) | (5,410) | |||||||||||||||||||||||||
Gains (losses) on sales of real estate | 348 | (209) | 8,104 | 626,686 | |||||||||||||||||||||||||
Interest and other income (loss) | 1,520 | (45) | 4,140 | 4,277 | |||||||||||||||||||||||||
Gains (losses) from investments in securities | (190) | 1,858 | 3,744 | 965 | |||||||||||||||||||||||||
Losses from early extinguishment of debt | — | — | (898) | — | |||||||||||||||||||||||||
Interest expense | (105,794) | (110,993) | (320,015) | (319,726) | |||||||||||||||||||||||||
Net income | 140,985 | 119,810 | 415,207 | 1,012,087 | |||||||||||||||||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | (18,971) | (15,561) | (52,602) | (34,280) | |||||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership | 122,014 | 104,249 | 362,605 | 977,807 | |||||||||||||||||||||||||
Preferred distributions | — | (2,625) | (2,560) | (7,875) | |||||||||||||||||||||||||
Preferred unit redemption charge | — | — | (6,412) | — | |||||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 122,014 | $ | 101,624 | $ | 353,633 | $ | 969,932 | |||||||||||||||||||||
Basic earnings per common unit attributable to Boston Properties Limited Partnership | |||||||||||||||||||||||||||||
Net income | $ | 0.70 | $ | 0.59 | $ | 2.04 | $ | 5.61 | |||||||||||||||||||||
Weighted average number of common units outstanding | 173,194 | 172,677 | 173,078 | 172,628 | |||||||||||||||||||||||||
Diluted earnings per common unit attributable to Boston Properties Limited Partnership | |||||||||||||||||||||||||||||
Net income | $ | 0.70 | $ | 0.59 | $ | 2.04 | $ | 5.61 | |||||||||||||||||||||
Weighted average number of common and common equivalent units outstanding | 173,609 | 172,702 | 173,410 | 172,726 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands, except for per unit amounts) | |||||||||||||||
Revenue | |||||||||||||||
Rental | |||||||||||||||
Base rent | $ | 513,269 | $ | 489,312 | $ | 1,537,373 | $ | 1,518,826 | |||||||
Recoveries from tenants | 94,476 | 92,560 | 272,803 | 267,852 | |||||||||||
Parking and other | 26,092 | 24,638 | 78,164 | 75,576 | |||||||||||
Total rental revenue | 633,837 | 606,510 | 1,888,340 | 1,862,254 | |||||||||||
Hotel revenue | 13,064 | 12,354 | 33,859 | 33,919 | |||||||||||
Development and management services | 10,811 | 6,364 | 24,648 | 18,586 | |||||||||||
Total revenue | 657,712 | 625,228 | 1,946,847 | 1,914,759 | |||||||||||
Expenses | |||||||||||||||
Operating | |||||||||||||||
Rental | 237,341 | 228,560 | 696,082 | 665,670 | |||||||||||
Hotel | 8,447 | 8,118 | 23,942 | 23,730 | |||||||||||
General and administrative | 25,792 | 25,165 | 84,319 | 79,936 | |||||||||||
Transaction costs | 239 | 249 | 572 | 1,187 | |||||||||||
Impairment loss | — | 1,783 | — | 1,783 | |||||||||||
Depreciation and amortization | 150,210 | 198,582 | 457,102 | 507,234 | |||||||||||
Total expenses | 422,029 | 462,457 | 1,262,017 | 1,279,540 | |||||||||||
Operating income | 235,683 | 162,771 | 684,830 | 635,219 | |||||||||||
Other income (expense) | |||||||||||||||
Income from unconsolidated joint ventures | 843 | 1,464 | 7,035 | 5,489 | |||||||||||
Interest and other income | 1,329 | 3,628 | 3,447 | 6,657 | |||||||||||
Gains from investments in securities | 944 | 976 | 2,716 | 1,713 | |||||||||||
Gains (losses) from early extinguishments of debt | — | (371 | ) | 14,354 | (371 | ) | |||||||||
Losses from interest rate contracts | — | (140 | ) | — | (140 | ) | |||||||||
Interest expense | (92,032 | ) | (104,641 | ) | (282,709 | ) | (314,953 | ) | |||||||
Income before gains on sales of real estate | 146,767 | 63,687 | 429,673 | 333,614 | |||||||||||
Gains on sales of real estate | 2,891 | 12,983 | 7,368 | 82,775 | |||||||||||
Net income | 149,658 | 76,670 | 437,041 | 416,389 | |||||||||||
Net income attributable to noncontrolling interests | |||||||||||||||
Noncontrolling interests in property partnerships | (14,340 | ) | 17,225 | (33,967 | ) | (53 | ) | ||||||||
Net income attributable to Boston Properties Limited Partnership | 135,318 | 93,895 | 403,074 | 416,336 | |||||||||||
Preferred distributions | (2,625 | ) | (2,589 | ) | (7,875 | ) | (7,796 | ) | |||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,693 | $ | 91,306 | $ | 395,199 | $ | 408,540 | |||||||
Basic earnings per common unit attributable to Boston Properties Limited Partnership common unitholders: | |||||||||||||||
Net income | $ | 0.77 | $ | 0.53 | $ | 2.30 | $ | 2.38 | |||||||
Weighted average number of common units outstanding | 171,691 | 171,379 | 171,649 | 171,353 | |||||||||||
Diluted earnings per common unit attributable to Boston Properties Limited Partnership common unitholders: | |||||||||||||||
Net income | $ | 0.77 | $ | 0.53 | $ | 2.30 | $ | 2.38 | |||||||
Weighted average number of common and common equivalent units outstanding | 171,819 | 171,761 | 171,861 | 171,643 | |||||||||||
Distributions per common unit | $ | 0.75 | $ | 0.65 | $ | 2.25 | $ | 1.95 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 149,658 | $ | 76,670 | $ | 437,041 | $ | 416,389 | Net income | $ | 140,985 | $ | 119,810 | $ | 415,207 | $ | 1,012,087 | ||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | 5,712 | (6,133 | ) | (85,285 | ) | Effective portion of interest rate contracts | 1,088 | 1,027 | 5,482 | (9,352) | ||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts (1) | 1,665 | 1,190 | 4,368 | 2,445 | Amortization of interest rate contracts (1) | 1,676 | 1,677 | 5,028 | 5,020 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 1,665 | 6,902 | (1,765 | ) | (82,840 | ) | Other comprehensive income (loss) | 2,764 | 2,704 | 10,510 | (4,332) | ||||||||||||||||||||||||||||||||||||
Comprehensive income | 151,323 | 83,572 | 435,276 | 333,549 | Comprehensive income | 143,749 | 122,514 | 425,717 | 1,007,755 | ||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests | (14,484 | ) | 16,812 | (31,695 | ) | 16,081 | Comprehensive income attributable to noncontrolling interests | (19,115) | (15,705) | (53,034) | (34,712) | ||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Boston Properties Limited Partnership | $ | 136,839 | $ | 100,384 | $ | 403,581 | $ | 349,630 | Comprehensive income attributable to Boston Properties Limited Partnership | $ | 124,634 | $ | 106,809 | $ | 372,683 | $ | 973,043 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CAPITAL AND NONCONTROLLING INTERESTS (unaudited and in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Units | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | Partners’ Capital (General and Limited Partners) | Preferred Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Property Partnerships | Total Capital | Noncontrolling Interests - Redeemable Partnership Units | ||||||||||||||||||||||||||||||||||||||||
Equity, June 30, 2021 | 1,737 | 154,399 | $ | 4,132,880 | $ | — | $ | (43,166) | $ | 1,725,343 | $ | 5,815,057 | $ | 2,008,478 | |||||||||||||||||||||||||||||||||
Net activity from contributions and unearned compensation | — | 21 | 1,705 | — | — | — | 1,705 | 7,679 | |||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | 110,043 | — | — | 18,971 | 129,014 | 11,971 | |||||||||||||||||||||||||||||||||||||||
Distributions | — | — | (153,082) | — | — | — | (153,082) | (17,203) | |||||||||||||||||||||||||||||||||||||||
Conversion of redeemable partnership units | — | 50 | 1,748 | — | — | — | 1,748 | (1,748) | |||||||||||||||||||||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | 115,823 | — | — | — | 115,823 | (115,823) | |||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | 981 | — | 981 | 107 | |||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 1,382 | 144 | 1,526 | 150 | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 11,318 | 11,318 | — | |||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (27,675) | (27,675) | — | |||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2021 | 1,737 | 154,470 | $ | 4,209,117 | $ | — | $ | (40,803) | $ | 1,728,101 | $ | 5,896,415 | $ | 1,893,611 | |||||||||||||||||||||||||||||||||
Equity, June 30, 2020 | 1,731 | 153,891 | $ | 4,828,066 | $ | 193,623 | $ | (54,921) | $ | 1,724,588 | $ | 6,691,356 | $ | 1,581,010 | |||||||||||||||||||||||||||||||||
Net activity from contributions and unearned compensation | — | 5 | 1,824 | — | — | — | 1,824 | 7,249 | |||||||||||||||||||||||||||||||||||||||
Allocated net income (loss) for the period | — | — | 92,059 | 2,625 | — | 15,561 | 110,245 | 9,565 | |||||||||||||||||||||||||||||||||||||||
Distributions | — | — | (152,518) | (2,625) | — | — | (155,143) | (17,183) | |||||||||||||||||||||||||||||||||||||||
Conversion of redeemable partnership units | — | 9 | 338 | — | — | — | 338 | (338) | |||||||||||||||||||||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | 174,080 | — | — | — | 174,080 | (174,080) | |||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | 917 | — | 917 | 110 | |||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 1,382 | 144 | 1,526 | 151 | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 1,407 | 1,407 | — | |||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (11,026) | (11,026) | — | |||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2020 | 1,731 | 153,905 | $ | 4,943,849 | $ | 193,623 | $ | (52,622) | $ | 1,730,674 | $ | 6,815,524 | $ | 1,406,484 |
Total Partners’ Capital | |||
Balance at December 31, 2016 | $ | 3,811,717 | |
Contributions | 4,937 | ||
Net income allocable to general and limited partner units | 362,724 | ||
Distributions | (354,734 | ) | |
Accumulated other comprehensive income | 455 | ||
Cumulative effect of a change in accounting principle | (272 | ) | |
Unearned compensation | (1,222 | ) | |
Conversion of redeemable partnership units | 16,812 | ||
Adjustment to reflect redeemable partnership units at redemption value | 103,556 | ||
Balance at September 30, 2017 | $ | 3,943,973 | |
Balance at December 31, 2015 | $ | 3,684,522 | |
Contributions | 3,269 | ||
Net income allocable to general and limited partner units | 374,216 | ||
Distributions | (307,480 | ) | |
Accumulated other comprehensive loss | (59,829 | ) | |
Unearned compensation | 1,651 | ||
Conversion of redeemable partnership units | 5,881 | ||
Adjustment to reflect redeemable partnership units at redemption value | (151,545 | ) | |
Balance at September 30, 2016 | $ | 3,550,685 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CAPITAL AND NONCONTROLLING INTERESTS (unaudited and in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Units | Capital | ||||||||||||||||||||||||||||||||||||||||||||||
General Partner | Limited Partner | Partners’ Capital (General and Limited Partners) | Preferred Units | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Property Partnerships | Total Capital | Noncontrolling Interests - Redeemable Partnership Units | ||||||||||||||||||||||||||||||||||||||||
Equity, December 31, 2020 | 1,731 | 153,988 | $ | 4,554,639 | $ | 193,623 | $ | (49,890) | $ | 1,726,933 | $ | 6,425,305 | $ | 1,643,024 | |||||||||||||||||||||||||||||||||
Net activity from contributions and unearned compensation | 4 | 255 | 21,900 | — | — | — | 21,900 | 39,332 | |||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | 324,652 | 2,560 | — | 52,602 | 379,814 | 35,393 | |||||||||||||||||||||||||||||||||||||||
Distributions | — | — | (459,048) | (2,560) | — | — | (461,608) | (51,743) | |||||||||||||||||||||||||||||||||||||||
Preferred unit redemption | — | — | — | (193,623) | — | — | (193,623) | — | |||||||||||||||||||||||||||||||||||||||
Preferred unit redemption charge | — | — | (6,412) | — | — | — | (6,412) | — | |||||||||||||||||||||||||||||||||||||||
Conversion of redeemable partnership units | 2 | 227 | 8,033 | — | — | — | 8,033 | (8,033) | |||||||||||||||||||||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | (234,647) | — | — | — | (234,647) | 234,647 | |||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | 4,943 | — | 4,943 | 539 | |||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 4,144 | 432 | 4,576 | 452 | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 13,738 | 13,738 | — | |||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (65,604) | (65,604) | — | |||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2021 | 1,737 | 154,470 | $ | 4,209,117 | $ | — | $ | (40,803) | $ | 1,728,101 | $ | 5,896,415 | $ | 1,893,611 | |||||||||||||||||||||||||||||||||
Equity, December 31, 2019 | 1,727 | 153,063 | $ | 3,380,175 | $ | 193,623 | $ | (48,335) | $ | 1,728,689 | $ | 5,254,152 | $ | 2,468,753 | |||||||||||||||||||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | (1,505) | — | — | — | (1,505) | (174) | |||||||||||||||||||||||||||||||||||||||
Net activity from contributions and unearned compensation | 1 | 73 | 10,405 | — | — | — | 10,405 | 32,278 | |||||||||||||||||||||||||||||||||||||||
Allocated net income for the period | — | — | 872,842 | 7,875 | — | 34,280 | 914,997 | 97,090 | |||||||||||||||||||||||||||||||||||||||
Distributions | — | — | (457,233) | (7,875) | — | — | (465,108) | (51,821) | |||||||||||||||||||||||||||||||||||||||
Conversion of redeemable partnership units | 3 | 769 | 26,682 | — | — | — | 26,682 | (26,682) | |||||||||||||||||||||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | 1,112,483 | — | — | — | 1,112,483 | (1,112,483) | |||||||||||||||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | (8,416) | — | (8,416) | (936) | |||||||||||||||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 4,129 | 432 | 4,561 | 459 | |||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 7,364 | 7,364 | — | |||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (40,091) | (40,091) | — | |||||||||||||||||||||||||||||||||||||||
Equity, September 30, 2020 | 1,731 | 153,905 | $ | 4,943,849 | $ | 193,623 | $ | (52,622) | $ | 1,730,674 | $ | 6,815,524 | $ | 1,406,484 | |||||||||||||||||||||||||||||||||
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 415,207 | $ | 1,012,087 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 533,255 | 510,400 | |||||||||||||||
Amortization of right of use assets - operating leases | 3,208 | 1,667 | |||||||||||||||
Non-cash compensation expense | 43,098 | 36,152 | |||||||||||||||
Loss from unconsolidated joint ventures | 1,745 | 5,410 | |||||||||||||||
Distributions of net cash flow from operations of unconsolidated joint ventures | 18,462 | 22,285 | |||||||||||||||
Gains from investments in securities | (3,744) | (965) | |||||||||||||||
Allowance for current expected credit losses | (758) | 1,997 | |||||||||||||||
Non-cash portion of interest expense | 17,584 | 17,397 | |||||||||||||||
Settlement of accreted debt discount on redemption of unsecured senior notes | (6,290) | — | |||||||||||||||
Losses from early extinguishments of debt | 898 | — | |||||||||||||||
Gains on sales of real estate | (8,104) | (626,686) | |||||||||||||||
Change in assets and liabilities: | |||||||||||||||||
Tenant and other receivables, net | 13,738 | 18,543 | |||||||||||||||
Notes receivable, net | (419) | (395) | |||||||||||||||
Accrued rental income, net | (74,283) | (85,843) | |||||||||||||||
Prepaid expenses and other assets | (61,019) | (60,365) | |||||||||||||||
Lease liabilities - operating leases | (24,023) | 1,157 | |||||||||||||||
Accounts payable and accrued expenses | 26,097 | 8,273 | |||||||||||||||
Accrued interest payable | (18,237) | (1,202) | |||||||||||||||
Other liabilities | (51,938) | (24,868) | |||||||||||||||
Tenant leasing costs | (37,618) | (52,621) | |||||||||||||||
Total adjustments | 371,652 | (229,664) | |||||||||||||||
Net cash provided by operating activities | 786,859 | 782,423 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Acquisitions of real estate | (218,679) | (135,698) | |||||||||||||||
Construction in progress | (381,104) | (358,824) | |||||||||||||||
Building and other capital improvements | (103,840) | (116,894) | |||||||||||||||
Tenant improvements | (218,878) | (172,401) | |||||||||||||||
Proceeds from sales of real estate | — | 505,679 | |||||||||||||||
Capital contributions to unconsolidated joint ventures | (95,462) | (158,374) | |||||||||||||||
Capital distributions from unconsolidated joint ventures | 122 | 55,123 | |||||||||||||||
Proceeds from sale of investment in unconsolidated joint venture | 17,789 | — | |||||||||||||||
Issuance of notes receivable, net | — | (9,800) | |||||||||||||||
Investments in securities, net | 1,684 | 2,778 | |||||||||||||||
Net cash used in investing activities | (998,368) | (388,411) | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Repayments of mortgage notes payable | (13,261) | (12,795) | |||||||||||||||
Proceeds from unsecured senior notes | 1,695,996 | 1,248,125 | |||||||||||||||
Redemption of unsecured senior notes | (843,710) | — | |||||||||||||||
Borrowings on unsecured line of credit | 300,000 | 265,000 | |||||||||||||||
Repayments of unsecured line of credit | (300,000) | (265,000) |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 437,041 | $ | 416,389 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 457,102 | 507,234 | |||||
Impairment loss | — | 1,783 | |||||
Non-cash compensation expense | 27,260 | 25,290 | |||||
Income from unconsolidated joint ventures | (7,035 | ) | (5,489 | ) | |||
Distributions of net cash flow from operations of unconsolidated joint ventures | 8,563 | 11,645 | |||||
Gains from investments in securities | (2,716 | ) | (1,713 | ) | |||
(Gains) losses from early extinguishments of debt | (14,444 | ) | 371 | ||||
Non-cash portion of interest expense | (6,667 | ) | (27,386 | ) | |||
Gains on sales of real estate | (7,368 | ) | (82,775 | ) | |||
Change in assets and liabilities: | |||||||
Cash held in escrows | 7,795 | 1,675 | |||||
Tenant and other receivables, net | 12,528 | 22,135 | |||||
Accrued rental income, net | (36,012 | ) | (14,618 | ) | |||
Prepaid expenses and other assets | (13,633 | ) | 4,883 | ||||
Accounts payable and accrued expenses | 7,861 | 16,852 | |||||
Accrued interest payable | (144,833 | ) | 44,242 | ||||
Other liabilities | (65,031 | ) | (114,321 | ) | |||
Tenant leasing costs | (67,699 | ) | (62,412 | ) | |||
Total adjustments | 155,671 | 327,396 | |||||
Net cash provided by operating activities | 592,712 | 743,785 | |||||
Cash flows from investing activities: | |||||||
Acquisitions of real estate | (15,953 | ) | (78,000 | ) | |||
Construction in progress | (452,283 | ) | (359,716 | ) | |||
Building and other capital improvements | (162,395 | ) | (81,842 | ) | |||
Tenant improvements | (152,749 | ) | (167,762 | ) | |||
Proceeds from sales of real estate | 29,810 | 122,750 | |||||
Proceeds from sales of real estate placed in escrow | (29,810 | ) | (122,647 | ) | |||
Proceeds from sales of real estate released from escrow | 16,640 | 122,647 | |||||
Cash released from escrow for investing activities | 9,638 | 6,694 | |||||
Cash released from escrow for land sale contracts | — | 1,403 | |||||
Cash placed in escrow for investment in unconsolidated joint venture | (25,000 | ) | — | ||||
Capital contributions to unconsolidated joint ventures | (89,874 | ) | (546,982 | ) | |||
Capital distributions from unconsolidated joint ventures | 251,000 | — | |||||
Investments in securities, net | (1,451 | ) | (929 | ) | |||
Net cash used in investing activities | (622,427 | ) | (1,104,384 | ) | |||
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited and in thousands) | |||||||||||||||||
Nine months ended September 30, | |||||||||||||||||
2021 | 2020 | ||||||||||||||||
Repayment of unsecured term loan | (500,000) | — | |||||||||||||||
Redemption of preferred units | (200,000) | — | |||||||||||||||
Payments on finance lease obligations | 1,250 | — | |||||||||||||||
Deferred financing costs | (20,770) | (10,416) | |||||||||||||||
Debt prepayment and extinguishment costs | (185) | — | |||||||||||||||
Net proceeds from equity transactions | 20,028 | 3,276 | |||||||||||||||
Distributions | (513,381) | (516,572) | |||||||||||||||
Contributions from noncontrolling interests in property partnerships | 13,738 | 7,364 | |||||||||||||||
Distributions to noncontrolling interests in property partnerships | (65,604) | (40,091) | |||||||||||||||
Net cash provided by (used in) financing activities | (425,899) | 678,891 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents and cash held in escrows | (637,408) | 1,072,903 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, beginning of period | 1,719,329 | 691,886 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 1,081,921 | $ | 1,764,789 | |||||||||||||
Reconciliation of cash and cash equivalents and cash held in escrows: | |||||||||||||||||
Cash and cash equivalents, beginning of period | $ | 1,668,742 | $ | 644,950 | |||||||||||||
Cash held in escrows, beginning of period | 50,587 | 46,936 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, beginning of period | $ | 1,719,329 | $ | 691,886 | |||||||||||||
Cash and cash equivalents, end of period | $ | 1,002,728 | $ | 1,714,783 | |||||||||||||
Cash held in escrows, end of period | 79,193 | 50,006 | |||||||||||||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 1,081,921 | $ | 1,764,789 | |||||||||||||
Supplemental disclosures: | |||||||||||||||||
Cash paid for interest | $ | 358,015 | $ | 335,591 | |||||||||||||
Interest capitalized | $ | 36,632 | $ | 41,329 | |||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||
Write-off of fully depreciated real estate | $ | (157,794) | $ | (73,584) | |||||||||||||
Change in real estate included in accounts payable and accrued expenses | $ | (22,104) | $ | (30,924) | |||||||||||||
Right-of-use assets obtained in exchange for lease liabilities | $ | 26,887 | $ | — | |||||||||||||
Accrued rental income, net deconsolidated | $ | — | $ | (4,558) | |||||||||||||
Tenant leasing costs, net deconsolidated | $ | — | $ | (3,462) | |||||||||||||
Building and other capital improvements, net deconsolidated | $ | — | $ | (111,889) | |||||||||||||
Tenant improvements, net deconsolidated | $ | — | $ | (12,331) | |||||||||||||
Investment in unconsolidated joint venture recorded upon deconsolidation | $ | — | $ | 347,898 | |||||||||||||
Distributions declared but not paid | $ | 169,739 | $ | 171,070 | |||||||||||||
Conversions of redeemable partnership units to partners’ capital | $ | 8,033 | $ | 26,682 | |||||||||||||
Issuance of restricted securities to employees and non-employee directors | $ | 44,257 | $ | 43,244 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(in thousands) | |||||||
Cash flows from financing activities: | |||||||
Proceeds from mortgage notes payable | 2,300,000 | — | |||||
Repayments of mortgage notes payable | (1,313,890 | ) | (1,323,284 | ) | |||
Proceeds from unsecured senior notes | — | 1,989,790 | |||||
Borrowings on unsecured line of credit | 470,000 | — | |||||
Repayments of unsecured line of credit | (470,000 | ) | — | ||||
Repayments of mezzanine notes payable | (306,000 | ) | — | ||||
Repayments of outside members’ notes payable | (70,424 | ) | — | ||||
Payments on capital lease obligations | (373 | ) | — | ||||
Payments on real estate financing transaction | (1,306 | ) | (4,712 | ) | |||
Deposit on mortgage note payable interest rate lock | (23,200 | ) | — | ||||
Return of deposit on mortgage note payable interest rate lock | 23,200 | — | |||||
Deferred financing costs | (44,083 | ) | (16,101 | ) | |||
Net proceeds from equity transactions | 241 | (270 | ) | ||||
Distributions | (394,900 | ) | (557,262 | ) | |||
Contributions from noncontrolling interests in property partnerships | 38,196 | 6,737 | |||||
Distributions to noncontrolling interests in property partnerships | (41,605 | ) | (38,694 | ) | |||
Net cash provided by financing activities | 165,856 | 56,204 | |||||
Net increase (decrease) in cash and cash equivalents | 136,141 | (304,395 | ) | ||||
Cash and cash equivalents, beginning of period | 356,914 | 723,718 | |||||
Cash and cash equivalents, end of period | $ | 493,055 | $ | 419,323 | |||
Supplemental disclosures: | |||||||
Cash paid for interest | $ | 477,189 | $ | 327,053 | |||
Interest capitalized | $ | 43,286 | $ | 28,956 | |||
Non-cash investing and financing activities: | |||||||
Write-off of fully depreciated real estate | $ | (102,795 | ) | $ | (164,528 | ) | |
Additions to real estate included in accounts payable and accrued expenses | $ | 36,609 | $ | 11,864 | |||
Real estate acquired through capital lease | $ | 28,962 | $ | — | |||
Outside members’ notes payable contributed to noncontrolling interests in property partnerships | $ | 109,576 | $ | — | |||
Distributions declared but not paid | $ | 130,434 | $ | 113,038 | |||
Conversions of redeemable partnership units to partners’ capital | $ | 16,812 | $ | 5,881 | |||
Issuance of restricted securities to employees | $ | 35,711 | $ | 33,711 |
September 30, 2017 | December 31, 2016 | ||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||
Mortgage notes payable, net | $ | 2,982,067 | $ | 3,049,617 | $ | 2,063,087 | $ | 2,092,237 | |||||||||||
Mezzanine notes payable | — | — | 307,093 | 308,344 | |||||||||||||||
Unsecured senior notes, net | 7,252,567 | 7,533,164 | 7,245,953 | 7,428,077 | |||||||||||||||
Total | $ | 10,234,634 | $ | 10,582,781 | $ | 9,616,133 | $ | 9,828,658 |
Financial Instrument | Level | ||||
Unsecured senior notes (1) | Level 1 | ||||
Related party note receivable | Level 3 | ||||
Notes receivable | Level 3 | ||||
Mortgage notes payable | Level 3 | ||||
Unsecured line of credit (2) | Level 3 |
Financial Instrument | Level | Range | Weighted Average | ||||||||
Related party note receivable | Level 3 | 3.58% | 3.58% | ||||||||
Notes receivable | Level 3 | 3.54% - 8.00% | 5.78% | ||||||||
Mortgage notes payable | Level 3 | 2.50% - 4.75% | 2.96% |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Related party note receivable, net | $ | 78,144 | $ | 83,354 | $ | 77,552 | $ | 84,579 | |||||||||||||||
Notes receivable, net | 19,297 | 19,885 | 18,729 | 19,372 | |||||||||||||||||||
Total | $ | 97,441 | $ | 103,239 | $ | 96,281 | $ | 103,951 | |||||||||||||||
Mortgage notes payable, net | $ | 2,898,699 | $ | 3,032,122 | $ | 2,909,081 | $ | 3,144,150 | |||||||||||||||
Unsecured senior notes, net | 10,479,651 | 11,157,602 | 9,639,287 | 10,620,527 | |||||||||||||||||||
Unsecured line of credit | — | — | — | — | |||||||||||||||||||
Unsecured term loan, net | — | — | 499,390 | 500,326 | |||||||||||||||||||
Total | $ | 13,378,350 | $ | 14,189,724 | $ | 13,047,758 | $ | 14,265,003 |
September 30, 2017 | December 31, 2016 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||
Land | $ | 4,880,331 | $ | 4,879,020 | Land | $ | 5,065,704 | $ | 5,069,206 | ||||||||||||
Land held for future development (1) | 212,585 | 246,656 | |||||||||||||||||||
Right of use assets - finance leases | Right of use assets - finance leases | 237,845 | 237,393 | ||||||||||||||||||
Right of use assets - operating leases (1) | Right of use assets - operating leases (1) | 170,085 | 146,406 | ||||||||||||||||||
Land held for future development (2) | Land held for future development (2) | 568,034 | 450,954 | ||||||||||||||||||
Buildings and improvements | 12,155,126 | 11,890,626 | Buildings and improvements | 14,118,587 | 13,777,691 | ||||||||||||||||
Tenant improvements | 2,186,953 | 2,060,315 | Tenant improvements | 2,853,531 | 2,752,880 | ||||||||||||||||
Furniture, fixtures and equipment | 37,612 | 32,687 | Furniture, fixtures and equipment | 51,013 | 49,606 | ||||||||||||||||
Construction in progress | 1,386,638 | 1,037,959 | Construction in progress | 1,054,531 | 868,773 | ||||||||||||||||
Total | 20,859,245 | 20,147,263 | Total | 24,119,330 | 23,352,909 | ||||||||||||||||
Less: Accumulated depreciation | (4,484,798 | ) | (4,222,235 | ) | Less: Accumulated depreciation | (5,850,397) | (5,534,102) | ||||||||||||||
$ | 16,374,447 | $ | 15,925,028 | $ | 18,268,933 | $ | 17,818,807 |
September 30, 2017 | December 31, 2016 | ||||||
Land | $ | 4,775,955 | $ | 4,774,460 | |||
Land held for future development (1) | 212,585 | 246,656 | |||||
Buildings and improvements | 11,848,024 | 11,581,795 | |||||
Tenant improvements | 2,186,953 | 2,060,315 | |||||
Furniture, fixtures and equipment | 37,612 | 32,687 | |||||
Construction in progress | 1,386,638 | 1,037,959 | |||||
Total | 20,447,767 | 19,733,872 | |||||
Less: Accumulated depreciation | (4,394,077 | ) | (4,136,364 | ) | |||
$ | 16,053,690 | $ | 15,597,508 |
September 30, 2021 | December 31, 2020 | |||||||||||||
Land | $ | 4,968,851 | $ | 4,971,990 | ||||||||||
Right of use assets - finance leases | 237,845 | 237,393 | ||||||||||||
Right of use assets - operating leases (1) | 170,085 | 146,406 | ||||||||||||
Land held for future development (2) | 568,034 | 450,954 | ||||||||||||
Buildings and improvements | 13,839,945 | 13,498,098 | ||||||||||||
Tenant improvements | 2,853,531 | 2,752,880 | ||||||||||||
Furniture, fixtures and equipment | 51,013 | 49,606 | ||||||||||||
Construction in progress | 1,054,531 | 868,773 | ||||||||||||
Total | 23,743,835 | 22,976,100 | ||||||||||||
Less: Accumulated depreciation | (5,739,625) | (5,428,576) | ||||||||||||
$ | 18,004,210 | $ | 17,547,524 |
Period from June 29, 2017 through December 31, 2017 | $ | 5 | |
2018 | 10 | ||
2019 | 10 | ||
2020 | 10 | ||
2021 | 13 | ||
Thereafter | 38,778 | ||
Total expected minimum obligations | 38,826 | ||
Interest portion | (9,864 | ) | |
Present value of net expected minimum payments | $ | 28,962 |
Land | $ | 2,890 | |
Building and improvements | 11,229 | ||
Tenant improvements | 871 | ||
In-place lease intangibles | 2,389 | ||
Below-market lease intangible | (1,426 | ) | |
Net assets acquired | $ | 15,953 |
Land | $ | 33,233 | ||||||
Building and improvements | 53,309 | |||||||
Tenant improvements | 2,631 | |||||||
In-place lease intangibles | 13,415 | |||||||
Below-market lease intangibles | (2,412) | |||||||
Net assets acquired | $ | 100,176 |
Acquired In-Place Lease Intangibles | Acquired Below- Market Lease Intangibles | ||||||
Period from May 15, 2017 through December 31, 2017 | $ | 660 | $ | (248 | ) | ||
2018 | 590 | (363 | ) | ||||
2019 | 367 | (337 | ) | ||||
2020 | 243 | (308 | ) | ||||
2021 | 96 | (105 | ) |
Acquired In-Place Lease Intangibles | Acquired Below-Market Lease Intangibles | |||||||||||||
Period from June 2, 2021 through December 31, 2021 | $ | 5,202 | $ | 935 | ||||||||||
2022 | 8,213 | 1,477 |
Land | $ | 52,030 | ||||||
Building and improvements | 63,060 | |||||||
Tenant improvements | 1,152 | |||||||
In-place lease intangibles | 2,523 | |||||||
Above-market lease intangibles | 142 | |||||||
Below-market lease intangibles | (403) | |||||||
Net assets acquired | $ | 118,504 |
Acquired In-Place Lease Intangibles | Acquired Above-Market Lease Intangibles | Acquired Below-Market Lease Intangibles | ||||||||||||||||||
Period from August 2, 2021 through December 31, 2021 | $ | 838 | $ | 31 | $ | 102 | ||||||||||||||
2022 | 1,478 | 74 | 236 | |||||||||||||||||
2023 | 151 | 25 | 39 | |||||||||||||||||
2024 | 56 | 12 | 26 |
Operating | |||||
Period from May 19, 2021 through December 31, 2021 | $ | 23,599 | |||
2022 | 761 | ||||
2023 | 784 | ||||
2024 | 808 | ||||
2025 | 832 | ||||
2026 | 422 | ||||
Thereafter | — | ||||
Total lease payments | 27,206 | ||||
Less: Interest portion | (536) | ||||
Present value of lease payments | $ | 26,670 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
Lease Revenue | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Fixed contractual payments | $ | 581,393 | $ | 557,384 | $ | 1,732,930 | $ | 1,673,855 | ||||||||||||||||||
Variable lease payments | 110,867 | 109,290 | 329,172 | 333,049 | ||||||||||||||||||||||
$ | 692,260 | $ | 666,674 | $ | 2,062,102 | $ | 2,006,904 |
Nominal % Ownership | Carrying Value of Investment (1) | Carrying Value of Investment (1) | |||||||||||||||||||||||||||||||||||||
Entity | Properties | September 30, 2017 | December 31, 2016 | Entity | Properties | Nominal % Ownership | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||||||||
Square 407 Limited Partnership | Market Square North | 50.0 | % | $ | (8,474 | ) | $ | (8,134 | ) | Square 407 Limited Partnership | Market Square North | 50.00 | % | $ | (1,917) | $ | (3,766) | ||||||||||||||||||||||
The Metropolitan Square Associates LLC | Metropolitan Square | 20.0 | % | 2,537 | 2,004 | ||||||||||||||||||||||||||||||||||
BP/CRF 901 New York Avenue LLC | 901 New York Avenue | 25.0 | % | (2) | (10,747 | ) | (10,564 | ) | |||||||||||||||||||||||||||||||
BP/CRF Metropolitan Square LLC | BP/CRF Metropolitan Square LLC | Metropolitan Square | 20.00 | % | (14,568) | (13,584) | |||||||||||||||||||||||||||||||||
901 New York, LLC | 901 New York, LLC | 901 New York Avenue | 25.00 | % | (2) | (12,390) | (12,264) | ||||||||||||||||||||||||||||||||
WP Project Developer LLC | Wisconsin Place Land and Infrastructure | 33.3 | % | (3) | 40,158 | 41,605 | WP Project Developer LLC | Wisconsin Place Land and Infrastructure | 33.33 | % | (3) | 34,104 | 35,297 | ||||||||||||||||||||||||||
Annapolis Junction NFM, LLC | Annapolis Junction | 50.0 | % | (4) | 18,771 | 20,539 | |||||||||||||||||||||||||||||||||
Annapolis Junction NFM LLC | Annapolis Junction NFM LLC | Annapolis Junction | 50.00 | % | (4) | N/A | 13,463 | ||||||||||||||||||||||||||||||||
540 Madison Venture LLC | 540 Madison Avenue | 60.0 | % | 67,046 | 67,816 | 540 Madison Venture LLC | 540 Madison Avenue | 60.00 | % | (5) | — | 122 | |||||||||||||||||||||||||||
500 North Capitol Venture LLC | 500 North Capitol Street, NW | 30.0 | % | (3,642 | ) | (3,389 | ) | 500 North Capitol Venture LLC | 500 North Capitol Street, NW | 30.00 | % | (7,700) | (6,945) | ||||||||||||||||||||||||||
501 K Street LLC | 1001 6th Street | 50.0 | % | (5) | 42,442 | 42,528 | 501 K Street LLC | 1001 6th Street | 50.00 | % | (6) | 42,669 | 42,499 | ||||||||||||||||||||||||||
Podium Developer LLC | The Hub on Causeway | 50.0 | % | 55,917 | 29,869 | Podium Developer LLC | The Hub on Causeway - Podium | 50.00 | % | 48,970 | 48,818 | ||||||||||||||||||||||||||||
Residential Tower Developer LLC | The Hub on Causeway - Residential | 50.0 | % | 25,811 | 20,803 | Residential Tower Developer LLC | Hub50House | 50.00 | % | 47,934 | 50,943 | ||||||||||||||||||||||||||||
Hotel Tower Developer LLC | The Hub on Causeway - Hotel | 50.0 | % | 1,596 | 933 | Hotel Tower Developer LLC | The Hub on Causeway - Hotel Air Rights | 50.00 | % | 11,402 | 10,754 | ||||||||||||||||||||||||||||
Office Tower Developer LLC | Office Tower Developer LLC | 100 Causeway Street | 50.00 | % | 56,714 | 56,312 | |||||||||||||||||||||||||||||||||
1265 Main Office JV LLC | 1265 Main Street | 50.0 | % | 4,686 | 4,779 | 1265 Main Office JV LLC | 1265 Main Street | 50.00 | % | 3,855 | 3,787 | ||||||||||||||||||||||||||||
BNY Tower Holdings LLC | Dock 72 at the Brooklyn Navy Yard | 50.0 | % | (6) | 67,901 | 33,699 | BNY Tower Holdings LLC | Dock 72 | 50.00 | % | 28,079 | 29,536 | |||||||||||||||||||||||||||
BNYTA Amenity Operator LLC | BNYTA Amenity Operator LLC | Dock 72 | 50.00 | % | 1,151 | 1,846 | |||||||||||||||||||||||||||||||||
CA-Colorado Center Limited Partnership | Colorado Center | 50.0 | % | 263,834 | 510,623 | CA-Colorado Center Limited Partnership | Colorado Center | 50.00 | % | 230,535 | 227,671 | ||||||||||||||||||||||||||||
7750 Wisconsin Avenue LLC | 7750 Wisconsin Avenue | 50.0 | % | (6) | 21,101 | N/A | 7750 Wisconsin Avenue LLC | 7750 Wisconsin Avenue | 50.00 | % | 59,734 | 58,112 | |||||||||||||||||||||||||||
BP-M 3HB Venture LLC | BP-M 3HB Venture LLC | 3 Hudson Boulevard | 25.00 | % | 116,537 | 113,774 | |||||||||||||||||||||||||||||||||
SMBP Venture LP | SMBP Venture LP | Santa Monica Business Park | 55.00 | % | 155,679 | 145,761 | |||||||||||||||||||||||||||||||||
Platform 16 Holdings LP | Platform 16 Holdings LP | Platform 16 | 55.00 | % | (7) | 108,098 | 108,393 | ||||||||||||||||||||||||||||||||
Gateway Portfolio Holdings LLC | Gateway Portfolio Holdings LLC | Gateway Commons | 50.00 | % | (8) | 328,367 | 336,206 | ||||||||||||||||||||||||||||||||
Rosecrans-Sepulveda Partners 4, LLC | Rosecrans-Sepulveda Partners 4, LLC | Beach Cities Media Campus | 50.00 | % | 27,124 | 27,184 | |||||||||||||||||||||||||||||||||
Safeco Plaza REIT LLC | Safeco Plaza REIT LLC | Safeco Plaza | 33.67 | % | (9) | 72,570 | N/A | ||||||||||||||||||||||||||||||||
$ | 588,937 | $ | 753,111 | $ | 1,336,947 | $ | 1,273,919 |
(1)Investments with deficit balances aggregating approximately $36.6 million at September 30, 2021 and December 31, 2020 are included within Other Liabilities in the Company’s Consolidated Balance Sheets. (2)The Company’s economic ownership has increased based on the achievement of certain return thresholds. At September 30, 2021 and December 31, 2020, the Company’s economic ownership was approximately 50%. (3)The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.33% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project. 24 (4)On March 30, 2021, the Company sold its interest in the joint venture to the partner. See below for additional details. (5)The property was sold on June 27, 2019. As of December 31, 2020, the investment consisted of undistributed cash. All remaining cash has been distributed as of September 30, 2021. (6)Under the joint venture agreement for this land parcel, the partner will be entitled to up to 2 additional payments from the venture based on increases in total entitled square footage of the project above 520,000 square feet and achieving certain project returns at stabilization. (7)This entity is a VIE (See Note 2). (8)As a result of the partner’s deferred contribution, the Company owned an approximately 52% and 55% interest in the joint venture at September 30, 2021 and December 31, 2020, respectively. (9)The Company’s ownership includes (1) a 33.0% direct interest in the joint venture, and (2) an additional 1% interest in each of the two entities (each, a “Safeco Partner Entity”) through which each partner owns its interest in the joint venture. |
September 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
ASSETS | |||||||||||
Real estate and development in process, net (1) | $ | 5,244,585 | $ | 4,708,571 | |||||||
Other assets | 561,722 | 531,071 | |||||||||
Total assets | $ | 5,806,307 | $ | 5,239,642 | |||||||
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY | |||||||||||
Mortgage and notes payable, net | $ | 2,995,161 | $ | 2,637,911 | |||||||
Other liabilities (2) | 639,980 | 650,433 | |||||||||
Members’/Partners’ equity | 2,171,166 | 1,951,298 | |||||||||
Total liabilities and members’/partners’ equity | $ | 5,806,307 | $ | 5,239,642 | |||||||
Company’s share of equity | $ | 995,995 | $ | 936,087 | |||||||
Basis differentials (3) | 340,952 | 337,832 | |||||||||
Carrying value of the Company’s investments in unconsolidated joint ventures (4) | $ | 1,336,947 | $ | 1,273,919 |
September 30, 2021 | December 31, 2020 | ||||||||||
Property | (in thousands) | ||||||||||
Colorado Center | $ | 305,236 | $ | 307,328 | |||||||
Gateway Commons | 51,566 | 51,875 | |||||||||
Dock 72 | (50,599) | (52,243) |
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Real estate and development in process, net | $ | 1,716,447 | $ | 1,519,217 | |||
Other assets | 374,484 | 297,263 | |||||
Total assets | $ | 2,090,931 | $ | 1,816,480 | |||
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY | |||||||
Mortgage and notes payable, net | $ | 1,411,401 | $ | 865,665 | |||
Other liabilities | 86,971 | 67,167 | |||||
Members’/Partners’ equity | 592,559 | 883,648 | |||||
Total liabilities and members’/partners’ equity | $ | 2,090,931 | $ | 1,816,480 | |||
Company’s share of equity | $ | 291,029 | $ | 450,662 | |||
Basis differentials (1) | 297,908 | 302,449 | |||||
Carrying value of the Company’s investments in unconsolidated joint ventures (2) | $ | 588,937 | $ | 753,111 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Total revenue (1) | $ | 90,009 | $ | 87,724 | $ | 268,501 | $ | 270,490 | |||||||||||||||||||||
Expenses | |||||||||||||||||||||||||||||
Operating | 40,378 | 37,572 | 114,299 | 106,677 | |||||||||||||||||||||||||
Transaction costs | — | — | 7 | — | |||||||||||||||||||||||||
Depreciation and amortization | 36,036 | 35,810 | 103,766 | 105,235 | |||||||||||||||||||||||||
Total expenses | 76,414 | 73,382 | 218,072 | 211,912 | |||||||||||||||||||||||||
Other income (expense) | |||||||||||||||||||||||||||||
Interest expense | (27,519) | (25,481) | (78,711) | (71,370) | |||||||||||||||||||||||||
Gains on sales of real estate | — | — | — | 11,720 | |||||||||||||||||||||||||
Net loss | $ | (13,924) | $ | (11,139) | $ | (28,282) | $ | (1,072) | |||||||||||||||||||||
Company’s share of net income (loss) | $ | (4,491) | $ | (4,421) | $ | (10,268) | $ | 855 | |||||||||||||||||||||
Gain on sale of investment (2) | — | — | 10,257 | — | |||||||||||||||||||||||||
Basis differential (3) | (1,106) | (2,452) | (1,734) | (6,265) | |||||||||||||||||||||||||
Loss from unconsolidated joint ventures | $ | (5,597) | $ | (6,873) | $ | (1,745) | $ | (5,410) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Total revenue (1) | $ | 55,516 | $ | 49,002 | $ | 166,139 | $ | 125,039 | |||||||
Expenses | |||||||||||||||
Operating | 23,128 | 21,753 | 67,310 | 54,779 | |||||||||||
Depreciation and amortization | 16,440 | 12,038 | 44,973 | 30,306 | |||||||||||
Total expenses | 39,568 | 33,791 | 112,283 | 85,085 | |||||||||||
Operating income | 15,948 | 15,211 | 53,856 | 39,954 | |||||||||||
Other expense | |||||||||||||||
Interest expense | 13,088 | 8,400 | 31,815 | 25,172 | |||||||||||
Net income | $ | 2,860 | $ | 6,811 | $ | 22,041 | $ | 14,782 | |||||||
Company’s share of net income | $ | 2,909 | $ | 3,179 | $ | 11,576 | $ | 6,830 | |||||||
Basis differential (2) | (2,066 | ) | (1,715 | ) | (4,541 | ) | (1,341 | ) | |||||||
Income from unconsolidated joint ventures | $ | 843 | $ | 1,464 | $ | 7,035 | $ | 5,489 |
Coupon/Stated Rate | Effective Rate(1) | Principal Amount | Maturity Date(2) | |||||||||||||||||||||||
11 Year Unsecured Senior Notes | 3.850 | % | 3.954 | % | $ | 1,000,000 | February 1, 2023 | (3) | ||||||||||||||||||
10.5 Year Unsecured Senior Notes | 3.125 | % | 3.279 | % | 500,000 | September 1, 2023 | ||||||||||||||||||||
10.5 Year Unsecured Senior Notes | 3.800 | % | 3.916 | % | 700,000 | February 1, 2024 | ||||||||||||||||||||
7 Year Unsecured Senior Notes | 3.200 | % | 3.350 | % | 850,000 | January 15, 2025 | ||||||||||||||||||||
10 Year Unsecured Senior Notes | 3.650 | % | 3.766 | % | 1,000,000 | February 1, 2026 | ||||||||||||||||||||
10 Year Unsecured Senior Notes | 2.750 | % | 3.495 | % | 1,000,000 | October 1, 2026 | ||||||||||||||||||||
10 Year Unsecured Senior Notes | 4.500 | % | 4.628 | % | 1,000,000 | December 1, 2028 | ||||||||||||||||||||
10 Year Unsecured Senior Notes | 3.400 | % | 3.505 | % | 850,000 | June 21, 2029 | ||||||||||||||||||||
10.5 Year Unsecured Senior Notes | 2.900 | % | 2.984 | % | 700,000 | March 15, 2030 | ||||||||||||||||||||
10.75 Year Unsecured Senior Notes | 3.250 | % | 3.343 | % | 1,250,000 | January 30, 2031 | ||||||||||||||||||||
11 Year Unsecured Senior Notes | 2.550 | % | 2.671 | % | 850,000 | April 1, 2032 | ||||||||||||||||||||
12 Year Unsecured Senior Notes | 2.450 | % | 2.524 | % | 850,000 | October 1, 2033 | ||||||||||||||||||||
Total principal | 10,550,000 | |||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Net unamortized discount | 17,581 | |||||||||||||||||||||||||
Deferred financing costs, net | 52,768 | |||||||||||||||||||||||||
Total | $ | 10,479,651 |
Derivative Instrument | Aggregate Notional Amount | Effective Date | Maturity Date | Strike Rate Range | Balance Sheet Location | Fair Value | ||||||||||||||
Low | High | |||||||||||||||||||
Interest Rate Swaps | $ | 350,000 | June 7, 2017 | June 7, 2027 | 2.418 | % | - | 2.950 | % | Other Liabilities | $ | (8,773 | ) | |||||||
Interest Rate Swaps | 100,000 | June 7, 2017 | June 7, 2027 | 2.336 | % | - | 2.388 | % | Prepaid Expenses and Other Assets | 509 | ||||||||||
$ | 450,000 | $ | (8,264 | ) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
(in thousands) | ||||||||||||||||
Amount of gain (loss) related to the effective portion recognized in other comprehensive loss | $ | — | $ | 5,712 | $ | (6,133 | ) | $ | (85,285 | ) | ||||||
Amount of loss related to the effective portion subsequently reclassified to earnings | $ | (1,665 | ) | $ | (1,190 | ) | $ | (4,368 | ) | $ | (2,445 | ) | ||||
Amount of loss related to the ineffective portion and amount excluded from effectiveness testing | $ | — | $ | (140 | ) | $ | — | $ | (140 | ) |
Balance at December 31, 2016 | $ | (52,251 | ) | |
Effective portion of interest rate contracts | (6,133 | ) | ||
Amortization of interest rate contracts | 4,368 | |||
Other comprehensive loss attributable to noncontrolling interests | 2,220 | |||
Balance at September 30, 2017 | $ | (51,796 | ) | |
Balance at December 31, 2015 | $ | (14,114 | ) | |
Effective portion of interest rate contracts | (85,285 | ) | ||
Amortization of interest rate contracts | 2,445 | |||
Other comprehensive loss attributable to noncontrolling interests | 23,011 | |||
Balance at September 30, 2016 | $ | (73,943 | ) |
Balance at December 31, 2016 | $ | (60,853 | ) | |
Effective portion of interest rate contracts | (6,133 | ) | ||
Amortization of interest rate contracts | 4,368 | |||
Other comprehensive loss attributable to noncontrolling interests | 2,272 | |||
Balance at September 30, 2017 | $ | (60,346 | ) | |
Balance at December 31, 2015 | $ | (18,337 | ) | |
Effective portion of interest rate contracts | (85,285 | ) | ||
Amortization of interest rate contracts | 2,445 | |||
Other comprehensive loss attributable to noncontrolling interests | 16,134 | |||
Balance at September 30, 2016 | $ | (85,043 | ) |
Record Date | Payment Date | Distributions per OP Unit and LTIP Unit | Distributions per MYLTIP Unit | |||||||||||||||||
September 30, 2021 | October 29, 2021 | $0.98 | $0.098 | |||||||||||||||||
June 30, 2021 | July 30, 2021 | $0.98 | $0.098 | |||||||||||||||||
March 31, 2021 | April 30, 2021 | $0.98 | $0.098 | |||||||||||||||||
December 31, 2020 | January 28, 2021 | $0.98 | $0.098 |
Record Date | Payment Date | Distributions per OP Unit and LTIP Unit | Distributions per MYLTIP Unit | |||||||||||||||||
September 30, 2020 | October 30, 2020 | $0.98 | $0.098 | |||||||||||||||||
June 30, 2020 | July 31, 2020 | $0.98 | $0.098 | |||||||||||||||||
March 31, 2020 | April 30, 2020 | $0.98 | $0.098 | |||||||||||||||||
December 31, 2019 | January 30, 2020 | $0.98 | $0.098 |
Record Date | Payment Date | Distributions per OP Unit and LTIP Unit | Distributions per MYLTIP Unit | |||||||
September 29, 2017 | October 31, 2017 | $0.75 | $0.075 | |||||||
June 30, 2017 | July 31, 2017 | $0.75 | $0.075 | |||||||
March 31, 2017 | April 28, 2017 | $0.75 | $0.075 | |||||||
December 31, 2016 | January 30, 2017 | $0.75 | $0.075 |
Balance at December 31, 2016 | $ | 2,262,040 | |
Contributions | 31,465 | ||
Net income | 40,350 | ||
Distributions | (40,292 | ) | |
Conversion of redeemable partnership units | (16,812 | ) | |
Unearned compensation | (5,194 | ) | |
Cumulative effect of a change in accounting principle | (1,763 | ) | |
Accumulated other comprehensive income | 52 | ||
Adjustment to reflect redeemable partnership units at redemption value | (103,556 | ) | |
Balance at September 30, 2017 | $ | 2,166,290 | |
Balance at December 31, 2015 | $ | 2,286,689 | |
Contributions | 31,492 | ||
Net income | 42,120 | ||
Distributions | (35,500 | ) | |
Conversion of redeemable partnership units | (5,881 | ) | |
Unearned compensation | (10,072 | ) | |
Accumulated other comprehensive loss | (6,877 | ) | |
Adjustment to reflect redeemable partnership units at redemption value | 151,545 | ||
Balance at September 30, 2016 | $ | 2,453,516 |
Balance at December 31, 2016 | $ | 1,530,647 | |
Capital contributions (1) | 147,772 | ||
Net income | 33,967 | ||
Accumulated other comprehensive loss | (2,272 | ) | |
Distributions | (41,439 | ) | |
Balance at September 30, 2017 | $ | 1,668,675 | |
Balance at December 31, 2015 | $ | 1,574,400 | |
Capital contributions | 5,417 | ||
Net income | 53 | ||
Accumulated other comprehensive loss | (16,134 | ) | |
Distributions | (38,694 | ) | |
Balance at September 30, 2016 | $ | 1,525,042 |
Record Date | Payment Date | Dividend (Per Share) | Distribution (Per Unit) | |||||||
September 29, 2017 | October 31, 2017 | $0.75 | $0.75 | |||||||
June 30, 2017 | July 31, 2017 | $0.75 | $0.75 | |||||||
March 31, 2017 | April 28, 2017 | $0.75 | $0.75 | |||||||
December 31, 2016 | January 30, 2017 | $0.75 | $0.75 |
Record Date | Payment Date | Dividend (Per Share) | Distribution (Per Unit) | |||||||||||||||||
September 30, 2021 | October 29, 2021 | $0.98 | $0.98 | |||||||||||||||||
June 30, 2021 | July 30, 2021 | $0.98 | $0.98 | |||||||||||||||||
March 31, 2021 | April 30, 2021 | $0.98 | $0.98 | |||||||||||||||||
December 31, 2020 | January 28, 2021 | $0.98 | $0.98 | |||||||||||||||||
September 30, 2020 | October 30, 2020 | $0.98 | $0.98 | |||||||||||||||||
June 30, 2020 | July 31, 2020 | $0.98 | $0.98 | |||||||||||||||||
March 31, 2020 | April 30, 2020 | $0.98 | $0.98 | |||||||||||||||||
December 31, 2019 | January 30, 2020 | $0.98 | $0.98 |
Record Date | Payment Date | Dividend (Per Share) | ||||||||||||||
$32.8125 | ||||||||||||||||
November 4, 2020 | November 16, 2020 | $32.8125 | ||||||||||||||
August 3, 2020 | August 17, 2020 | $32.8125 | ||||||||||||||
May | May 15, | $32.8125 | ||||||||||||||
February | February | $32.8125 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 108,297 | $ | 89,854 | $ | 311,680 | $ | 854,541 | ||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Preferred stock redemption charge | — | — | 6,412 | — | ||||||||||||||||||||||||||||
Preferred dividends | — | 2,625 | 2,560 | 7,875 | ||||||||||||||||||||||||||||
Noncontrolling interest—common units of the Operating Partnership | 11,982 | 10,020 | 35,393 | 97,090 | ||||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | 18,971 | 15,561 | 52,602 | 34,280 | ||||||||||||||||||||||||||||
Interest expense | 105,794 | 110,993 | 320,015 | 319,726 | ||||||||||||||||||||||||||||
Losses from early extinguishment of debt | — | — | 898 | — | ||||||||||||||||||||||||||||
Loss from unconsolidated joint ventures | 5,597 | 6,873 | 1,745 | 5,410 | ||||||||||||||||||||||||||||
Net operating income from unconsolidated joint ventures | 24,266 | 24,938 | 74,478 | 81,607 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 179,412 | 166,456 | 539,815 | 515,738 | ||||||||||||||||||||||||||||
Transaction costs | 1,888 | 307 | 2,970 | 1,254 | ||||||||||||||||||||||||||||
Payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | ||||||||||||||||||||||||||||
General and administrative expense | 34,560 | 27,862 | 117,924 | 102,059 | ||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net operating income attributable to noncontrolling interests in property partnerships | 47,800 | 42,160 | 138,463 | 122,248 | ||||||||||||||||||||||||||||
Gains (losses) from investments in securities | (190) | 1,858 | 3,744 | 965 | ||||||||||||||||||||||||||||
Interest and other income (loss) | 1,520 | (45) | 4,140 | 4,277 | ||||||||||||||||||||||||||||
Gains (losses) on sales of real estate | 348 | (209) | 8,104 | 613,723 | ||||||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | ||||||||||||||||||||||||||||
Development and management services revenue | 6,094 | 7,281 | 20,181 | 23,285 | ||||||||||||||||||||||||||||
Company’s share of Net Operating Income | $ | 435,195 | $ | 404,444 | $ | 1,291,860 | $ | 1,255,082 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 122,014 | $ | 101,624 | $ | 353,633 | $ | 969,932 | ||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Preferred unit redemption charge | — | — | 6,412 | — | ||||||||||||||||||||||||||||
Preferred distributions | — | 2,625 | 2,560 | 7,875 | ||||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | 18,971 | 15,561 | 52,602 | 34,280 | ||||||||||||||||||||||||||||
Interest expense | 105,794 | 110,993 | 320,015 | 319,726 | ||||||||||||||||||||||||||||
Losses from early extinguishment of debt | — | — | 898 | — | ||||||||||||||||||||||||||||
Loss from unconsolidated joint ventures | 5,597 | 6,873 | 1,745 | 5,410 | ||||||||||||||||||||||||||||
Net operating income from unconsolidated joint ventures | 24,266 | 24,938 | 74,478 | 81,607 | ||||||||||||||||||||||||||||
Depreciation and amortization expense | 177,677 | 164,706 | 533,255 | 510,400 | ||||||||||||||||||||||||||||
Transaction costs | 1,888 | 307 | 2,970 | 1,254 | ||||||||||||||||||||||||||||
Payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | ||||||||||||||||||||||||||||
General and administrative expense | 34,560 | 27,862 | 117,924 | 102,059 | ||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Net operating income attributable to noncontrolling interests in property partnerships | 47,800 | 42,160 | 138,463 | 122,248 | ||||||||||||||||||||||||||||
Gains (losses) from investments in securities | (190) | 1,858 | 3,744 | 965 | ||||||||||||||||||||||||||||
Interest and other income (loss) | 1,520 | (45) | 4,140 | 4,277 | ||||||||||||||||||||||||||||
Gains (losses) on sales of real estate | 348 | (209) | 8,104 | 626,686 | ||||||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,006 | 2,896 | 9,166 | 8,617 | ||||||||||||||||||||||||||||
Development and management services revenue | 6,094 | 7,281 | 20,181 | 23,285 | ||||||||||||||||||||||||||||
Company’s share of Net Operating Income | $ | 435,195 | $ | 404,444 | $ | 1,291,860 | $ | 1,255,082 |
Boston | Los Angeles | New York | San Francisco | Seattle | Washington, DC | Total | |||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||
Office | $ | 236,080 | $ | — | $ | 257,656 | $ | 125,340 | $ | — | $ | 85,797 | $ | 704,873 | |||||||||||||||||||||||||||
Residential | 3,418 | — | — | 806 | — | 6,670 | 10,894 | ||||||||||||||||||||||||||||||||||
Hotel | 5,189 | — | — | — | — | — | 5,189 | ||||||||||||||||||||||||||||||||||
Total | 244,687 | — | 257,656 | 126,146 | — | 92,467 | 720,956 | ||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.93 | % | — | % | 35.74 | % | 17.50 | % | — | % | 12.83 | % | 100.00 | % | |||||||||||||||||||||||||||
Rental Expenses: | |||||||||||||||||||||||||||||||||||||||||
Office | 82,697 | — | 94,338 | 43,582 | — | 31,619 | 252,236 | ||||||||||||||||||||||||||||||||||
Residential | 1,396 | — | — | 1,688 | — | 2,961 | 6,045 | ||||||||||||||||||||||||||||||||||
Hotel | 3,946 | — | — | — | — | — | 3,946 | ||||||||||||||||||||||||||||||||||
Total | 88,039 | — | 94,338 | 45,270 | — | 34,580 | 262,227 | ||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.57 | % | — | % | 35.98 | % | 17.26 | % | — | % | 13.19 | % | 100.00 | % | |||||||||||||||||||||||||||
Net operating income | $ | 156,648 | $ | — | $ | 163,318 | $ | 80,876 | $ | — | $ | 57,887 | $ | 458,729 | |||||||||||||||||||||||||||
% of Grand Totals | 34.15 | % | — | % | 35.60 | % | 17.63 | % | — | % | 12.62 | % | 100.00 | % | |||||||||||||||||||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (10,841) | — | (36,959) | — | — | — | (47,800) | ||||||||||||||||||||||||||||||||||
Add: Company’s share of net operating income from unconsolidated joint ventures | 3,464 | 12,078 | 104 | 3,502 | 671 | 4,447 | 24,266 | ||||||||||||||||||||||||||||||||||
Company’s share of net operating income | $ | 149,271 | $ | 12,078 | $ | 126,463 | $ | 84,378 | $ | 671 | $ | 62,334 | $ | 435,195 | |||||||||||||||||||||||||||
% of Grand Totals | 34.30 | % | 2.78 | % | 29.06 | % | 19.39 | % | 0.15 | % | 14.32 | % | 100.00 | % |
Boston | Los Angeles | New York | San Francisco | Washington, DC | Total | ||||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||
Office | $ | 225,652 | $ | — | $ | 239,535 | $ | 128,165 | $ | 79,931 | $ | 673,283 | |||||||||||||||||||||||||||||
Residential | 3,043 | — | — | 23 | 6,652 | 9,718 | |||||||||||||||||||||||||||||||||||
Hotel | 90 | — | — | — | — | 90 | |||||||||||||||||||||||||||||||||||
Total | 228,785 | — | 239,535 | 128,188 | 86,583 | 683,091 | |||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.48 | % | — | % | 35.07 | % | 18.77 | % | 12.68 | % | 100.00 | % | |||||||||||||||||||||||||||||
Rental Expenses: | |||||||||||||||||||||||||||||||||||||||||
Office | 81,890 | — | 97,904 | 41,518 | 31,994 | 253,306 | |||||||||||||||||||||||||||||||||||
Residential | 1,350 | — | — | 740 | 2,865 | 4,955 | |||||||||||||||||||||||||||||||||||
Hotel | 3,164 | — | — | — | — | 3,164 | |||||||||||||||||||||||||||||||||||
Total | 86,404 | — | 97,904 | 42,258 | 34,859 | 261,425 | |||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.05 | % | — | % | 37.46 | % | 16.16 | % | 13.33 | % | 100.00 | % | |||||||||||||||||||||||||||||
Net operating income | $ | 142,381 | $ | — | $ | 141,631 | $ | 85,930 | $ | 51,724 | $ | 421,666 | |||||||||||||||||||||||||||||
% of Grand Totals | 33.77 | % | — | % | 33.58 | % | 20.38 | % | 12.27 | % | 100.00 | % | |||||||||||||||||||||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (10,228) | — | (31,932) | — | — | (42,160) | |||||||||||||||||||||||||||||||||||
Add: Company’s share of net operating income from unconsolidated joint ventures | 2,764 | 11,953 | 539 | 4,098 | 5,584 | 24,938 | |||||||||||||||||||||||||||||||||||
Company’s share of net operating income | $ | 134,917 | $ | 11,953 | $ | 110,238 | $ | 90,028 | $ | 57,308 | $ | 404,444 | |||||||||||||||||||||||||||||
% of Grand Totals | 33.35 | % | 2.96 | % | 27.26 | % | 22.26 | % | 14.17 | % | 100.00 | % |
Boston | Los Angeles | New York | San Francisco | Seattle | Washington, DC | Total | |||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||
Office | $ | 696,054 | $ | — | $ | 760,002 | $ | 382,119 | $ | — | $ | 252,822 | $ | 2,090,997 | |||||||||||||||||||||||||||
Residential | 9,594 | — | — | 1,817 | — | 18,421 | 29,832 | ||||||||||||||||||||||||||||||||||
Hotel | 7,382 | — | — | — | — | — | 7,382 | ||||||||||||||||||||||||||||||||||
Total | 713,030 | — | 760,002 | 383,936 | — | 271,243 | 2,128,211 | ||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.50 | % | — | % | 35.71 | % | 18.04 | % | — | % | 12.75 | % | 100.00 | % | |||||||||||||||||||||||||||
Rental Expenses: | |||||||||||||||||||||||||||||||||||||||||
Office | 240,743 | — | 286,385 | 124,785 | — | 94,360 | 746,273 | ||||||||||||||||||||||||||||||||||
Residential | 4,286 | — | — | 4,918 | — | 8,896 | 18,100 | ||||||||||||||||||||||||||||||||||
Hotel | 7,993 | — | — | — | — | — | 7,993 | ||||||||||||||||||||||||||||||||||
Total | 253,022 | — | 286,385 | 129,703 | — | 103,256 | 772,366 | ||||||||||||||||||||||||||||||||||
% of Grand Totals | 32.76 | % | — | % | 37.08 | % | 16.79 | % | — | % | 13.37 | % | 100.00 | % | |||||||||||||||||||||||||||
Net operating income | $ | 460,008 | $ | — | $ | 473,617 | $ | 254,233 | $ | — | $ | 167,987 | $ | 1,355,845 | |||||||||||||||||||||||||||
% of Grand Totals | 33.93 | % | — | % | 34.93 | % | 18.75 | % | — | % | 12.39 | % | 100.00 | % | |||||||||||||||||||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (31,641) | — | (106,822) | — | — | — | (138,463) | ||||||||||||||||||||||||||||||||||
Add: Company’s share of net operating income from unconsolidated joint ventures | 9,369 | 38,535 | (517) | 10,562 | 671 | 15,858 | 74,478 | ||||||||||||||||||||||||||||||||||
Company’s share of net operating income | $ | 437,736 | $ | 38,535 | $ | 366,278 | $ | 264,795 | $ | 671 | $ | 183,845 | $ | 1,291,860 | |||||||||||||||||||||||||||
% of Grand Totals | 33.88 | % | 2.98 | % | 28.35 | % | 20.50 | % | 0.05 | % | 14.24 | % | 100.00 | % |
Boston | Los Angeles | New York | San Francisco | Washington, DC | Total | ||||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||
Office | $ | 683,501 | $ | — | $ | 699,063 | $ | 393,137 | $ | 256,904 | $ | 2,032,605 | |||||||||||||||||||||||||||||
Residential | 10,512 | — | — | 23 | 18,541 | 29,076 | |||||||||||||||||||||||||||||||||||
Hotel | 7,014 | — | — | — | — | 7,014 | |||||||||||||||||||||||||||||||||||
Total | 701,027 | — | 699,063 | 393,160 | 275,445 | 2,068,695 | |||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.89 | % | — | % | 33.79 | % | 19.01 | % | 13.31 | % | 100.00 | % | |||||||||||||||||||||||||||||
Rental Expenses: | |||||||||||||||||||||||||||||||||||||||||
Office | 240,129 | — | 285,411 | 123,168 | 99,322 | 748,030 | |||||||||||||||||||||||||||||||||||
Residential | 3,925 | — | — | 740 | 8,319 | 12,984 | |||||||||||||||||||||||||||||||||||
Hotel | 11,958 | — | — | — | — | 11,958 | |||||||||||||||||||||||||||||||||||
Total | 256,012 | — | 285,411 | 123,908 | 107,641 | 772,972 | |||||||||||||||||||||||||||||||||||
% of Grand Totals | 33.12 | % | — | % | 36.92 | % | 16.03 | % | 13.93 | % | 100.00 | % | |||||||||||||||||||||||||||||
Net operating income | $ | 445,015 | $ | — | $ | 413,652 | $ | 269,252 | $ | 167,804 | $ | 1,295,723 | |||||||||||||||||||||||||||||
% of Grand Totals | 34.35 | % | — | % | 31.92 | % | 20.78 | % | 12.95 | % | 100.00 | % | |||||||||||||||||||||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (31,467) | — | (90,781) | — | — | (122,248) | |||||||||||||||||||||||||||||||||||
Add: Company’s share of net operating income from unconsolidated joint ventures | 8,490 | 42,909 | 2,110 | 11,384 | 16,714 | 81,607 | |||||||||||||||||||||||||||||||||||
Company’s share of net operating income | $ | 422,038 | $ | 42,909 | $ | 324,981 | $ | 280,636 | $ | 184,518 | $ | 1,255,082 | |||||||||||||||||||||||||||||
% of Grand Totals | 33.63 | % | 3.42 | % | 25.89 | % | 22.36 | % | 14.70 | % | 100.00 | % |
Three months ended September 30, 2021 | |||||||||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | |||||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 108,297 | 156,183 | $ | 0.69 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 415 | — | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 108,297 | 156,598 | $ | 0.69 | ||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | |||||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | 155,645 | $ | 0.58 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 25 | — | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | 155,670 | $ | 0.58 |
Nine months ended September 30, 2021 | |||||||||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | |||||||||||||||
(in thousands, except for per share amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 311,680 | 156,062 | $ | 2.00 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 332 | (0.01) | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 311,680 | 156,394 | $ | 1.99 | ||||||||||||
Three months ended September 30, 2017 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
(in thousands, except for per share amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,337 | 154,355 | $ | 0.76 | |||||
Allocation of undistributed earnings to participating securities | (7 | ) | — | — | ||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,330 | 154,355 | $ | 0.76 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 128 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,330 | 154,483 | $ | 0.76 | |||||
Three months ended September 30, 2016 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
(in thousands, except for per share amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 76,753 | 153,754 | $ | 0.50 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 382 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 76,753 | 154,136 | $ | 0.50 | |||||
Nine months ended September 30, 2017 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
(in thousands, except for per share amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 348,086 | 154,132 | $ | 2.26 | |||||
Allocation of undistributed earnings to participating securities | (15 | ) | — | — | ||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 348,071 | 154,132 | $ | 2.26 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 212 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 348,071 | 154,344 | $ | 2.26 | |||||
Nine months ended September 30, 2016 | Nine months ended September 30, 2020 | ||||||||||||||||||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||||||||||||||||
(in thousands, except for per share amounts) | (in thousands, except for per share amounts) | ||||||||||||||||||||||||||
Basic Earnings: | Basic Earnings: | ||||||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 355,114 | 153,681 | $ | 2.31 | Net income attributable to Boston Properties, Inc. common shareholders | $ | 854,541 | 155,349 | $ | 5.50 | ||||||||||||||||
Allocation of undistributed earnings to participating securities | (189 | ) | — | — | Allocation of undistributed earnings to participating securities | (1,150) | — | (0.01) | |||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 354,925 | 153,681 | $ | 2.31 | Net income attributable to Boston Properties, Inc. common shareholders | $ | 853,391 | 155,349 | $ | 5.49 | ||||||||||||||||
Effect of Dilutive Securities: | Effect of Dilutive Securities: | ||||||||||||||||||||||||||
Stock Based Compensation | — | 290 | — | Stock Based Compensation | — | 98 | — | ||||||||||||||||||||
Diluted Earnings: | Diluted Earnings: | ||||||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 354,925 | 153,971 | $ | 2.31 | Net income attributable to Boston Properties, Inc. common shareholders | $ | 853,391 | 155,447 | $ | 5.49 |
Three months ended September 30, 2017 | Three months ended September 30, 2021 | ||||||||||||||||||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||||||||||||||||
(in thousands, except for per unit amounts) | (in thousands, except for per unit amounts) | ||||||||||||||||||||||||||
Basic Earnings: | Basic Earnings: | ||||||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,693 | 171,691 | $ | 0.77 | Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 122,014 | 173,194 | $ | 0.70 | ||||||||||||||||
Allocation of undistributed earnings to participating securities | (8 | ) | — | — | |||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,685 | 171,691 | $ | 0.77 | ||||||||||||||||||||||
Effect of Dilutive Securities: | Effect of Dilutive Securities: | ||||||||||||||||||||||||||
Stock Based Compensation | — | 128 | — | Stock Based Compensation | — | 415 | — | ||||||||||||||||||||
Diluted Earnings: | Diluted Earnings: | ||||||||||||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,685 | 171,819 | $ | 0.77 | Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 122,014 | 173,609 | $ | 0.70 |
Three months ended September 30, 2020 | |||||||||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | |||||||||||||||
(in thousands, except for per unit amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 101,624 | 172,677 | $ | 0.59 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 25 | — | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 101,624 | 172,702 | $ | 0.59 |
Nine months ended September 30, 2021 | |||||||||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | |||||||||||||||
(in thousands, except for per unit amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 353,633 | 173,078 | $ | 2.04 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 332 | — | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 353,633 | 173,410 | $ | 2.04 | ||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | |||||||||||||||
(in thousands, except for per unit amounts) | |||||||||||||||||
Basic Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 969,932 | 172,628 | $ | 5.62 | ||||||||||||
Allocation of undistributed earnings to participating securities | (1,278) | — | (0.01) | ||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 968,654 | 172,628 | $ | 5.61 | ||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||
Stock Based Compensation | — | 98 | — | ||||||||||||||
Diluted Earnings: | |||||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 968,654 | 172,726 | $ | 5.61 | ||||||||||||
Three months ended September 30, 2016 | ||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||
(in thousands, except for per unit amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 91,306 | 171,379 | $ | 0.53 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 382 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 91,306 | 171,761 | $ | 0.53 | |||||
Nine months ended September 30, 2017 | ||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||
(in thousands, except for per unit amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 395,199 | 171,649 | $ | 2.30 | |||||
Allocation of undistributed earnings to participating securities | (17 | ) | — | — | ||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 395,182 | 171,649 | $ | 2.30 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 212 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 395,182 | 171,861 | $ | 2.30 | |||||
Nine months ended September 30, 2016 | ||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||
(in thousands, except for per unit amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 408,540 | 171,353 | $ | 2.38 | |||||
Allocation of undistributed earnings to participating securities | (210 | ) | — | — | ||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 408,330 | 171,353 | $ | 2.38 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 290 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 408,330 | 171,643 | $ | 2.38 | |||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 117,337 | $ | 76,753 | $ | 348,086 | $ | 355,114 | |||||||
Add: | |||||||||||||||
Preferred dividends | 2,625 | 2,589 | 7,875 | 7,796 | |||||||||||
Noncontrolling interest—common units of Boston Properties Limited Partnership | 13,402 | 9,387 | 40,350 | 42,120 | |||||||||||
Noncontrolling interests in property partnerships | 14,340 | (17,225 | ) | 33,967 | 53 | ||||||||||
Interest expense | 92,032 | 104,641 | 282,709 | 314,953 | |||||||||||
Losses from interest rate contracts | — | 140 | — | 140 | |||||||||||
Depreciation and amortization expense | 152,164 | 203,748 | 463,288 | 516,371 | |||||||||||
Impairment loss | — | 1,783 | — | 1,783 | |||||||||||
Transaction costs | 239 | 249 | 572 | 1,187 | |||||||||||
General and administrative expense | 25,792 | 25,165 | 84,319 | 79,936 | |||||||||||
Less: | |||||||||||||||
Gains on sales of real estate | 2,891 | 12,983 | 6,791 | 80,606 | |||||||||||
Gains (losses) from early extinguishments of debt | — | (371 | ) | 14,354 | (371 | ) | |||||||||
Gains from investments in securities | 944 | 976 | 2,716 | 1,713 | |||||||||||
Interest and other income | 1,329 | 3,628 | 3,447 | 6,657 | |||||||||||
Income from unconsolidated joint ventures | 843 | 1,464 | 7,035 | 5,489 | |||||||||||
Development and management services revenue | 10,811 | 6,364 | 24,648 | 18,586 | |||||||||||
Net Operating Income | $ | 401,113 | $ | 382,186 | $ | 1,202,175 | $ | 1,206,773 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(in thousands) | |||||||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 132,693 | $ | 91,306 | $ | 395,199 | $ | 408,540 | |||||||
Add: | |||||||||||||||
Preferred distributions | 2,625 | 2,589 | 7,875 | 7,796 | |||||||||||
Noncontrolling interests in property partnerships | 14,340 | (17,225 | ) | 33,967 | 53 | ||||||||||
Interest expense | 92,032 | 104,641 | 282,709 | 314,953 | |||||||||||
Losses from interest rate contracts | — | 140 | — | 140 | |||||||||||
Depreciation and amortization expense | 150,210 | 198,582 | 457,102 | 507,234 | |||||||||||
Impairment loss | — | 1,783 | — | 1,783 | |||||||||||
Transaction costs | 239 | 249 | 572 | 1,187 | |||||||||||
General and administrative expense | 25,792 | 25,165 | 84,319 | 79,936 | |||||||||||
Less: | |||||||||||||||
Gains on sales of real estate | 2,891 | 12,983 | 7,368 | 82,775 | |||||||||||
Gains (losses) from early extinguishments of debt | — | (371 | ) | 14,354 | (371 | ) | |||||||||
Gains from investments in securities | 944 | 976 | 2,716 | 1,713 | |||||||||||
Interest and other income | 1,329 | 3,628 | 3,447 | 6,657 | |||||||||||
Income from unconsolidated joint ventures | 843 | 1,464 | 7,035 | 5,489 | |||||||||||
Development and management services revenue | 10,811 | 6,364 | 24,648 | 18,586 | |||||||||||
Net Operating Income | $ | 401,113 | $ | 382,186 | $ | 1,202,175 | $ | 1,206,773 |
Boston | New York | San Francisco | Washington, DC | Total | |||||||||||||||
Rental Revenue: | |||||||||||||||||||
Office | $ | 196,687 | $ | 242,071 | $ | 87,162 | $ | 103,622 | $ | 629,542 | |||||||||
Residential | 1,228 | — | — | 3,067 | 4,295 | ||||||||||||||
Hotel | 13,064 | — | — | — | 13,064 | ||||||||||||||
Total | 210,979 | 242,071 | 87,162 | 106,689 | 646,901 | ||||||||||||||
% of Grand Totals | 32.61 | % | 37.43 | % | 13.47 | % | 16.49 | % | 100.00 | % | |||||||||
Rental Expenses: | |||||||||||||||||||
Office | 76,086 | 95,775 | 26,792 | 37,111 | 235,764 | ||||||||||||||
Residential | 512 | — | — | 1,065 | 1,577 | ||||||||||||||
Hotel | 8,447 | — | — | — | 8,447 | ||||||||||||||
Total | 85,045 | 95,775 | 26,792 | 38,176 | 245,788 | ||||||||||||||
% of Grand Totals | 34.60 | % | 38.97 | % | 10.90 | % | 15.53 | % | 100.00 | % | |||||||||
Net operating income | $ | 125,934 | $ | 146,296 | $ | 60,370 | $ | 68,513 | $ | 401,113 | |||||||||
% of Grand Totals | 31.40 | % | 36.47 | % | 15.05 | % | 17.08 | % | 100.00 | % |
Boston | New York | San Francisco | Washington, DC | Total | |||||||||||||||
Rental Revenue: | |||||||||||||||||||
Office | $ | 183,975 | $ | 237,262 | $ | 80,235 | $ | 100,666 | $ | 602,138 | |||||||||
Residential | 1,227 | — | — | 3,145 | 4,372 | ||||||||||||||
Hotel | 12,354 | — | — | — | 12,354 | ||||||||||||||
Total | 197,556 | 237,262 | 80,235 | 103,811 | 618,864 | ||||||||||||||
% of Grand Totals | 31.92 | % | 38.34 | % | 12.96 | % | 16.78 | % | 100.00 | % | |||||||||
Rental Expenses: | |||||||||||||||||||
Office | 71,254 | 95,073 | 26,037 | 33,973 | 226,337 | ||||||||||||||
Residential | 1,141 | — | — | 1,082 | 2,223 | ||||||||||||||
Hotel | 8,118 | — | — | — | 8,118 | ||||||||||||||
Total | 80,513 | 95,073 | 26,037 | 35,055 | 236,678 | ||||||||||||||
% of Grand Totals | 34.02 | % | 40.17 | % | 11.00 | % | 14.81 | % | 100.00 | % | |||||||||
Net operating income | $ | 117,043 | $ | 142,189 | $ | 54,198 | $ | 68,756 | $ | 382,186 | |||||||||
% of Grand Totals | 30.62 | % | 37.21 | % | 14.18 | % | 17.99 | % | 100.00 | % |
Boston | New York | San Francisco | Washington, DC | Total | |||||||||||||||
Rental Revenue: | |||||||||||||||||||
Office | $ | 573,883 | $ | 735,485 | $ | 257,286 | $ | 309,225 | $ | 1,875,879 | |||||||||
Residential | 3,520 | — | — | 8,941 | 12,461 | ||||||||||||||
Hotel | 33,859 | — | — | — | 33,859 | ||||||||||||||
Total | 611,262 | 735,485 | 257,286 | 318,166 | 1,922,199 | ||||||||||||||
% of Grand Totals | 31.80 | % | 38.27 | % | 13.38 | % | 16.55 | % | 100.00 | % | |||||||||
Rental Expenses: | |||||||||||||||||||
Office | 225,502 | 280,569 | 77,204 | 108,044 | 691,319 | ||||||||||||||
Residential | 1,552 | — | — | 3,211 | 4,763 | ||||||||||||||
Hotel | 23,942 | — | — | — | 23,942 | ||||||||||||||
Total | 250,996 | 280,569 | 77,204 | 111,255 | 720,024 | ||||||||||||||
% of Grand Totals | 34.86 | % | 38.97 | % | 10.72 | % | 15.45 | % | 100.00 | % | |||||||||
Net operating income | $ | 360,266 | $ | 454,916 | $ | 180,082 | $ | 206,911 | $ | 1,202,175 | |||||||||
% of Grand Totals | 29.97 | % | 37.84 | % | 14.98 | % | 17.21 | % | 100.00 | % |
Boston | New York | San Francisco | Washington, DC | Total | |||||||||||||||
Rental Revenue: | |||||||||||||||||||
Office | $ | 540,850 | $ | 773,077 | $ | 235,076 | $ | 300,742 | $ | 1,849,745 | |||||||||
Residential | 3,578 | — | — | 8,931 | 12,509 | ||||||||||||||
Hotel | 33,919 | — | — | — | 33,919 | ||||||||||||||
Total | 578,347 | 773,077 | 235,076 | 309,673 | 1,896,173 | ||||||||||||||
% of Grand Totals | 30.50 | % | 40.77 | % | 12.40 | % | 16.33 | % | 100.00 | % | |||||||||
Rental Expenses: | |||||||||||||||||||
Office | 210,695 | 272,620 | 75,412 | 101,514 | 660,241 | ||||||||||||||
Residential | 2,174 | — | — | 3,255 | 5,429 | ||||||||||||||
Hotel | 23,730 | — | — | — | 23,730 | ||||||||||||||
Total | 236,599 | 272,620 | 75,412 | 104,769 | 689,400 | ||||||||||||||
% of Grand Totals | 34.32 | % | 39.54 | % | 10.94 | % | 15.20 | % | 100.00 | % | |||||||||
Net operating income | $ | 341,748 | $ | 500,457 | $ | 159,664 | $ | 204,904 | $ | 1,206,773 | |||||||||
% of Grand Totals | 28.32 | % | 41.47 | % | 13.23 | % | 16.98 | % | 100.00 | % |
Three months ended September 30, 2021 | Nine months ended September 30, 2021 | |||||||||||||
(Square Feet) | ||||||||||||||
Vacant space available at the beginning of the period | 5,186,818 | 4,517,385 | ||||||||||||
Property dispositions/properties taken out of service (1) | — | (104,613) | ||||||||||||
Vacant space in properties acquired (2) | 143,848 | 143,848 | ||||||||||||
Properties placed (and partially placed) in-service (3) | 503,024 | 732,454 | ||||||||||||
Leases expiring or terminated during the period | 862,505 | 4,061,176 | ||||||||||||
Total space available for lease | 6,696,195 | 9,350,250 | ||||||||||||
1st generation leases | 585,933 | 789,489 | ||||||||||||
2nd generation leases with new tenants | 407,240 | 1,824,259 | ||||||||||||
2nd generation lease renewals | 311,332 | 1,344,812 | ||||||||||||
Total space leased (4) | 1,304,505 | 3,958,560 | ||||||||||||
Vacant space available for lease at the end of the period | 5,391,690 | 5,391,690 | ||||||||||||
Leases executed during the period, in square feet (5) | 1,431,817 | 3,262,850 | ||||||||||||
Second generation leasing information: (6) | ||||||||||||||
Leases commencing during the period, in square feet | 718,572 | 3,169,071 | ||||||||||||
Weighted Average Lease Term | 58 Months | 81 Months | ||||||||||||
Weighted Average Free Rent Period | 124 Days | 158 Days | ||||||||||||
Total Transaction Costs Per Square Foot (7) | $43.95 | $70.21 | ||||||||||||
Increase (Decrease) in Gross Rents (8) | (9.42) | % | (0.03) | % | ||||||||||
Increase (Decrease) in Net Rents (9) | (14.23) | % | (0.11) | % |
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | |||||||
(Square Feet) | ||||||||
Vacant space available at the beginning of the period | 3,952,331 | 4,196,275 | ||||||
Property dispositions/properties taken out of service | — | (115,289 | ) | |||||
Properties acquired vacant space | — | 15,944 | ||||||
Properties placed in-service | 303,861 | 386,599 | ||||||
Leases expiring or terminated during the period | 1,523,017 | 3,628,613 | ||||||
Total space available for lease | 5,779,209 | 8,112,142 | ||||||
1st generation leases | 225,125 | 302,578 | ||||||
2nd generation leases with new tenants | 624,427 | 2,064,896 | ||||||
2nd generation lease renewals | 671,715 | 1,486,726 | ||||||
Total space leased (1) | 1,521,267 | 3,854,200 | ||||||
Vacant space available for lease at the end of the period | 4,257,942 | 4,257,942 | ||||||
Leases executed during the period, in square feet (2) | 2,565,971 | 4,058,416 | ||||||
Second generation leasing information: (3) | ||||||||
Leases commencing during the period, in square feet | 1,296,142 | 3,551,622 | ||||||
Weighted Average Lease Term | 93 Months | 95 Months | ||||||
Weighted Average Free Rent Period | 102 Days | 111 Days | ||||||
Total Transaction Costs Per Square Foot (4) | $43.66 | $54.48 | ||||||
Increase in Gross Rents (5) | 1.34 | % | 10.44 | % | ||||
Increase in Net Rents (6) | 1.54 | % | 15.97 | % |
(9)Represents the decrease in net rent (gross rent less operating expenses) on the new versus expired leases on the 507,899 and 2,219,080 square feet of second generation leases that had been occupied within the prior 12 months for the three and nine |
Total Property Portfolio | Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Increase/ (Decrease) | % Change | 2021 | 2020 | Increase/ (Decrease) | % Change | ||||||||||||||||||||||||||||||||||
Net Income Attributable to Boston Properties, Inc. Common Shareholders | $ | 348,086 | $ | 355,114 | $ | (7,028 | ) | (1.98 | )% | Net Income Attributable to Boston Properties, Inc. Common Shareholders | $ | 311,680 | $ | 854,541 | $ | (542,861) | (63.53) | % | |||||||||||||||||||||||
Preferred stock redemption charge | Preferred stock redemption charge | 6,412 | — | 6,412 | 100.00 | % | |||||||||||||||||||||||||||||||||||
Preferred dividends | 7,875 | 7,796 | 79 | 1.01 | % | Preferred dividends | 2,560 | 7,875 | (5,315) | (67.49) | % | ||||||||||||||||||||||||||||||
Net Income Attributable to Boston Properties, Inc. | 355,961 | 362,910 | (6,949 | ) | (1.91 | )% | Net Income Attributable to Boston Properties, Inc. | 320,652 | 862,416 | (541,764) | (62.82) | % | |||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests: | Net Income Attributable to Noncontrolling Interests: | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest—common units of the Operating Partnership | 40,350 | 42,120 | (1,770 | ) | (4.20 | )% | Noncontrolling interest—common units of the Operating Partnership | 35,393 | 97,090 | (61,697) | (63.55) | % | |||||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | 33,967 | 53 | 33,914 | 63,988.68 | % | Noncontrolling interests in property partnerships | 52,602 | 34,280 | 18,322 | 53.45 | % | ||||||||||||||||||||||||||||||
Net Income | 430,278 | 405,083 | 25,195 | 6.22 | % | Net Income | 408,647 | 993,786 | (585,139) | (58.88) | % | ||||||||||||||||||||||||||||||
Gains on sales of real estate | 6,791 | 80,606 | (73,815 | ) | (91.58 | )% | |||||||||||||||||||||||||||||||||||
Income Before Gains on Sales of Real Estate | 423,487 | 324,477 | 99,010 | 30.51 | % | ||||||||||||||||||||||||||||||||||||
Other Expenses: | Other Expenses: | ||||||||||||||||||||||||||||||||||||||||
Add: | Add: | ||||||||||||||||||||||||||||||||||||||||
Losses from interest rate contracts | — | 140 | (140 | ) | (100.00 | )% | |||||||||||||||||||||||||||||||||||
Interest expense | 282,709 | 314,953 | (32,244 | ) | (10.24 | )% | Interest expense | 320,015 | 319,726 | 289 | 0.09 | % | |||||||||||||||||||||||||||||
Losses from early extinguishment of debt | Losses from early extinguishment of debt | 898 | — | 898 | 100.00 | % | |||||||||||||||||||||||||||||||||||
Loss from unconsolidated joint ventures | Loss from unconsolidated joint ventures | 1,745 | 5,410 | (3,665) | (67.74) | % | |||||||||||||||||||||||||||||||||||
Other Income: | Other Income: | ||||||||||||||||||||||||||||||||||||||||
Less: | Less: | ||||||||||||||||||||||||||||||||||||||||
Gains (losses) from early extinguishments of debt | 14,354 | (371 | ) | 14,725 | 3,969.00 | % | |||||||||||||||||||||||||||||||||||
Gains from investments in securities | 2,716 | 1,713 | 1,003 | 58.55 | % | Gains from investments in securities | 3,744 | 965 | 2,779 | 287.98 | % | ||||||||||||||||||||||||||||||
Interest and other income | 3,447 | 6,657 | (3,210 | ) | (48.22 | )% | |||||||||||||||||||||||||||||||||||
Income from unconsolidated joint ventures | 7,035 | 5,489 | 1,546 | 28.17 | % | ||||||||||||||||||||||||||||||||||||
Operating Income | 678,644 | 626,082 | 52,562 | 8.40 | % | ||||||||||||||||||||||||||||||||||||
Interest and other income (loss) | Interest and other income (loss) | 4,140 | 4,277 | (137) | (3.20) | % | |||||||||||||||||||||||||||||||||||
Gains on sales of real estate | Gains on sales of real estate | 8,104 | 613,723 | (605,619) | (98.68) | % | |||||||||||||||||||||||||||||||||||
Other Expenses: | Other Expenses: | ||||||||||||||||||||||||||||||||||||||||
Add: | Add: | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 463,288 | 516,371 | (53,083 | ) | (10.28 | )% | Depreciation and amortization expense | 539,815 | 515,738 | 24,077 | 4.67 | % | |||||||||||||||||||||||||||||
Impairment loss | — | 1,783 | (1,783 | ) | (100.00 | )% | |||||||||||||||||||||||||||||||||||
Transaction costs | 572 | 1,187 | (615 | ) | (51.81 | )% | Transaction costs | 2,970 | 1,254 | 1,716 | 136.84 | % | |||||||||||||||||||||||||||||
Payroll and related costs from management services contracts | Payroll and related costs from management services contracts | 9,166 | 8,617 | 549 | 6.37 | % | |||||||||||||||||||||||||||||||||||
General and administrative expense | 84,319 | 79,936 | 4,383 | 5.48 | % | General and administrative expense | 117,924 | 102,059 | 15,865 | 15.54 | % | ||||||||||||||||||||||||||||||
Other Revenue: | Other Revenue: | ||||||||||||||||||||||||||||||||||||||||
Less: | Less: | ||||||||||||||||||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | Direct reimbursements of payroll and related costs from management services contracts | 9,166 | 8,617 | 549 | 6.37 | % | |||||||||||||||||||||||||||||||||||
Development and management services revenue | 24,648 | 18,586 | 6,062 | 32.62 | % | Development and management services revenue | 20,181 | 23,285 | (3,104) | (13.33) | % | ||||||||||||||||||||||||||||||
Net Operating Income | $ | 1,202,175 | $ | 1,206,773 | $ | (4,598 | ) | (0.38 | )% | Net Operating Income | $ | 1,355,845 | $ | 1,295,723 | $ | 60,122 | 4.64 | % |
Total Property Portfolio | |||||||||||||||
2017 | 2016 | Increase/ (Decrease) | % Change | ||||||||||||
Net Income Attributable to Boston Properties Limited Partnership Common Unitholders | $ | 395,199 | $ | 408,540 | $ | (13,341 | ) | (3.27 | )% | ||||||
Preferred distributions | 7,875 | 7,796 | 79 | 1.01 | % | ||||||||||
Net Income Attributable to Boston Properties Limited Partnership | 403,074 | 416,336 | (13,262 | ) | (3.19 | )% | |||||||||
Net Income Attributable to Noncontrolling Interests: | |||||||||||||||
Noncontrolling interests in property partnerships | 33,967 | 53 | 33,914 | 63,988.68 | % | ||||||||||
Net Income | 437,041 | 416,389 | 20,652 | 4.96 | % | ||||||||||
Gains on sales of real estate | 7,368 | 82,775 | (75,407 | ) | (91.10 | )% | |||||||||
Income Before Gains on Sales of Real Estate | 429,673 | 333,614 | 96,059 | 28.79 | % | ||||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Losses from interest rate contracts | — | 140 | (140 | ) | (100.00 | )% | |||||||||
Interest expense | 282,709 | 314,953 | (32,244 | ) | (10.24 | )% | |||||||||
Other Income: | |||||||||||||||
Less: | |||||||||||||||
Gains (losses) from early extinguishments of debt | 14,354 | (371 | ) | 14,725 | 3,969.00 | % | |||||||||
Gains from investments in securities | 2,716 | 1,713 | 1,003 | 58.55 | % | ||||||||||
Interest and other income | 3,447 | 6,657 | (3,210 | ) | (48.22 | )% | |||||||||
Income from unconsolidated joint ventures | 7,035 | 5,489 | 1,546 | 28.17 | % | ||||||||||
Operating Income | 684,830 | 635,219 | 49,611 | 7.81 | % | ||||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 457,102 | 507,234 | (50,132 | ) | (9.88 | )% | |||||||||
Impairment loss | — | 1,783 | (1,783 | ) | (100.00 | )% | |||||||||
Transaction costs | 572 | 1,187 | (615 | ) | (51.81 | )% | |||||||||
General and administrative expense | 84,319 | 79,936 | 4,383 | 5.48 | % | ||||||||||
Other Revenue: | |||||||||||||||
Less: | |||||||||||||||
Development and management services revenue | 24,648 | 18,586 | 6,062 | 32.62 | % | ||||||||||
Net Operating Income | $ | 1,202,175 | $ | 1,206,773 | $ | (4,598 | ) | (0.38 | )% |
Nine months ended September 30, | ||||||||||||||||||||||||||
2021 | 2020 | Increase/ (Decrease) | % Change | |||||||||||||||||||||||
Net Income Attributable to Boston Properties Limited Partnership Common Unitholders | $ | 353,633 | $ | 969,932 | $ | (616,299) | (63.54) | % | ||||||||||||||||||
Preferred unit redemption charge | 6,412 | — | 6,412 | 100.00 | % | |||||||||||||||||||||
Preferred distributions | 2,560 | 7,875 | (5,315) | (67.49) | % | |||||||||||||||||||||
Net Income Attributable to Boston Properties Limited Partnership | 362,605 | 977,807 | (615,202) | (62.92) | % | |||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests: | ||||||||||||||||||||||||||
Noncontrolling interests in property partnerships | 52,602 | 34,280 | 18,322 | 53.45 | % | |||||||||||||||||||||
Net Income | 415,207 | 1,012,087 | (596,880) | (58.98) | % | |||||||||||||||||||||
Other Expenses: | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Interest expense | 320,015 | 319,726 | 289 | 0.09 | % | |||||||||||||||||||||
Losses from early extinguishment of debt | 898 | — | 898 | 100.00 | % | |||||||||||||||||||||
Loss from unconsolidated joint ventures | 1,745 | 5,410 | (3,665) | (67.74) | % | |||||||||||||||||||||
Other Income: | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Gains from investments in securities | 3,744 | 965 | 2,779 | 287.98 | % | |||||||||||||||||||||
Interest and other income (loss) | 4,140 | 4,277 | (137) | (3.20) | % | |||||||||||||||||||||
Gains on sales of real estate | 8,104 | 626,686 | (618,582) | (98.71) | % | |||||||||||||||||||||
Other Expenses: | ||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||
Depreciation and amortization expense | 533,255 | 510,400 | 22,855 | 4.48 | % | |||||||||||||||||||||
Transaction costs | 2,970 | 1,254 | 1,716 | 136.84 | % | |||||||||||||||||||||
Payroll and related costs from management services contracts | 9,166 | 8,617 | 549 | 6.37 | % | |||||||||||||||||||||
General and administrative expense | 117,924 | 102,059 | 15,865 | 15.54 | % | |||||||||||||||||||||
Other Revenue: | ||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 9,166 | 8,617 | 549 | 6.37 | % | |||||||||||||||||||||
Development and management services revenue | 20,181 | 23,285 | (3,104) | (13.33) | % | |||||||||||||||||||||
Net Operating Income | $ | 1,355,845 | $ | 1,295,723 | $ | 60,122 | 4.64 | % |
Same Property Portfolio | Properties Acquired Portfolio | Properties Placed In-Service Portfolio | Properties in Development or Redevelopment Portfolio | Properties Sold Portfolio | Total Property Portfolio | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Increase/ (Decrease) | % Change | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | Increase/ (Decrease) | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Revenue (Excluding Termination Income) | $ | 1,969,391 | $ | 1,917,628 | $ | 51,763 | 2.70 | % | $ | 4,617 | $ | 297 | $ | 31,200 | $ | 13,115 | $ | 8,928 | $ | 14,771 | $ | 7,258 | $ | 24,067 | $ | 2,021,394 | $ | 1,969,878 | $ | 51,516 | 2.62 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Termination Income | 11,499 | 8,363 | 3,136 | 37.50 | % | — | — | — | — | — | — | — | 59 | 11,499 | 8,422 | 3,077 | 36.54 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Revenue | 1,980,890 | 1,925,991 | 54,899 | 2.85 | % | 4,617 | 297 | 31,200 | 13,115 | 8,928 | 14,771 | 7,258 | 24,126 | 2,032,893 | 1,978,300 | 54,593 | 2.76 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parking and Other | 56,398 | 53,136 | 3,262 | 6.14 | % | 488 | 3 | 14 | 16 | 201 | — | 1,003 | 1,150 | 58,104 | 54,305 | 3,799 | 7.00 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Rental Revenue (1) | 2,037,288 | 1,979,127 | 58,161 | 2.94 | % | 5,105 | 300 | 31,214 | 13,131 | 9,129 | 14,771 | 8,261 | 25,276 | 2,090,997 | 2,032,605 | 58,392 | 2.87 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Operating Expenses | 728,119 | 726,296 | 1,823 | 0.25 | % | 2,294 | 443 | 8,586 | 5,778 | 4,414 | 6,224 | 2,860 | 9,289 | 746,273 | 748,030 | (1,757) | (0.23) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss), Excluding Residential and Hotel | 1,309,169 | 1,252,831 | 56,338 | 4.50 | % | 2,811 | (143) | 22,628 | 7,353 | 4,715 | 8,547 | 5,401 | 15,987 | 1,344,724 | 1,284,575 | 60,149 | 4.68 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Residential Net Operating Income (Loss) (2) | 14,833 | 16,809 | (1,976) | (11.76) | % | — | — | (3,101) | (717) | — | — | — | — | 11,732 | 16,092 | (4,360) | (27.09) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hotel Net Operating Loss (2) | (611) | (4,944) | 4,333 | 87.64 | % | — | — | — | — | — | — | — | — | (611) | (4,944) | 4,333 | 87.64 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss) | $ | 1,323,391 | $ | 1,264,696 | $ | 58,695 | 4.64 | % | $ | 2,811 | $ | (143) | $ | 19,527 | $ | 6,636 | $ | 4,715 | $ | 8,547 | $ | 5,401 | $ | 15,987 | $ | 1,355,845 | $ | 1,295,723 | $ | 60,122 | 4.64 | % |
Same Property Portfolio | Properties Placed In-Service Portfolio | Properties Acquired Portfolio | Properties in Development or Redevelopment Portfolio | Properties Sold Portfolio | Total Property Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2017 | 2016 | Increase/ (Decrease) | % Change | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | Increase/ (Decrease) | % Change | ||||||||||||||||||||||||||||||||||||||||||||||
Rental Revenue: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental Revenue | $ | 1,793,037 | $ | 1,737,375 | $ | 55,662 | 3.20 | % | $ | 50,727 | $ | 30,682 | $ | 5,447 | $ | 2,447 | $ | 3,520 | $ | 17,220 | $ | 846 | $ | 3,231 | $ | 1,853,577 | $ | 1,790,955 | $ | 62,622 | 3.50 | % | ||||||||||||||||||||||||||||||
Termination Income | 23,730 | 59,681 | (35,951 | ) | (60.24 | )% | — | — | — | — | (1,428 | ) | (892 | ) | — | — | 22,302 | 58,789 | (36,487 | ) | (62.06 | )% | ||||||||||||||||||||||||||||||||||||||||
Total Rental Revenue | 1,816,767 | 1,797,056 | 19,711 | 1.10 | % | 50,727 | 30,682 | 5,447 | 2,447 | 2,092 | 16,328 | 846 | 3,231 | 1,875,879 | 1,849,744 | 26,135 | 1.41 | % | ||||||||||||||||||||||||||||||||||||||||||||
Real Estate Operating Expenses | 664,110 | 641,839 | 22,271 | 3.47 | % | 14,640 | 7,476 | 1,320 | 565 | 10,560 | 8,834 | 689 | 1,526 | 691,319 | 660,240 | 31,079 | 4.71 | % | ||||||||||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss), excluding residential and hotel | 1,152,657 | 1,155,217 | (2,560 | ) | (0.22 | )% | 36,087 | 23,206 | 4,127 | 1,882 | (8,468 | ) | — | 7,494 | 157 | 1,705 | 1,184,560 | 1,189,504 | (4,944 | ) | (0.42 | )% | ||||||||||||||||||||||||||||||||||||||||
Residential Net Operating Income (1) | 7,691 | 7,703 | (12 | ) | (0.16 | )% | — | — | — | — | 7 | (623 | ) | — | — | 7,698 | 7,080 | 618 | 8.73 | % | ||||||||||||||||||||||||||||||||||||||||||
Hotel Net Operating Income (1) | 9,917 | 10,189 | (272 | ) | (2.67 | )% | — | — | — | — | — | — | — | — | 9,917 | 10,189 | (272 | ) | (2.67 | )% | ||||||||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss) (1) | $ | 1,170,265 | $ | 1,173,109 | $ | (2,844 | ) | (0.24 | )% | $ | 36,087 | $ | 23,206 | $ | 4,127 | $ | 1,882 | $ | (8,461 | ) | $ | 6,871 | $ | 157 | $ | 1,705 | $ | 1,202,175 | $ | 1,206,773 | $ | (4,598 | ) | (0.38 | )% |
Square Feet | Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date acquired | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
777 Harrison Street (1) | June 26, 2020 | N/A | $ | 1,509 | $ | 300 | $ | 1,209 | $ | 1,641 | $ | 443 | $ | 1,198 | ||||||||||||||||||||||||||||||||||||
153 & 211 Second Avenue | June 2, 2021 | 136,882 | 3,101 | — | 3,101 | 319 | — | 319 | ||||||||||||||||||||||||||||||||||||||||||
Shady Grove Bio+Tech Campus | August 2, 2021 | 233,452 | 495 | — | 495 | 334 | — | 334 | ||||||||||||||||||||||||||||||||||||||||||
370,334 | $ | 5,105 | $ | 300 | $ | 4,805 | $ | 2,294 | $ | 443 | $ | 1,851 |
Quarter Initially Placed In-Service | Quarter Fully Placed In-Service | Rental Revenue | Real Estate Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Square Feet | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
20 CityPoint | Second Quarter, 2019 | Second Quarter, 2020 | 211,476 | $ | 5,781 | $ | 5,485 | $ | 296 | $ | 2,248 | $ | 2,053 | $ | 195 | |||||||||||||||||||||||||||||||||||||||||
17Fifty Presidents Street | First Quarter, 2020 | First Quarter, 2020 | 275,809 | 14,833 | 8,878 | 5,955 | 4,292 | 2,576 | 1,716 | |||||||||||||||||||||||||||||||||||||||||||||||
One Five Nine East 53rd Street (1) | First Quarter, 2021 | First Quarter, 2021 | 220,000 | 10,600 | (1,232) | 11,832 | 2,046 | 1,149 | 897 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Office | 707,285 | 31,214 | 13,131 | 18,083 | 8,586 | 5,778 | 2,808 | |||||||||||||||||||||||||||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Skylyne | Third Quarter, 2020 | Third Quarter, 2020 | 330,996 | 1,817 | 23 | 1,794 | 4,918 | 740 | 4,178 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Residential | 330,996 | 1,817 | 23 | 1,794 | 4,918 | 740 | 4,178 | |||||||||||||||||||||||||||||||||||||||||||||||||
1,038,281 | $ | 33,031 | $ | 13,154 | $ | 19,877 | $ | 13,504 | $ | 6,518 | $ | 6,986 |
Quarter Initially Placed In-Service | Quarter Fully Placed In-Service | Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||
Name | Square Feet | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
601 Massachusetts Avenue | Third Quarter, 2015 | Second Quarter, 2016 | 478,818 | $ | 27,716 | $ | 24,938 | $ | 2,778 | $ | 6,871 | $ | 5,568 | $ | 1,303 | ||||||||||||||||
804 Carnegie Center | Second Quarter, 2016 | Second Quarter, 2016 | 130,000 | 4,195 | 2,576 | 1,619 | 1,024 | 1,066 | (42 | ) | |||||||||||||||||||||
10 CityPoint | Second Quarter, 2016 | Second Quarter, 2016 | 241,460 | 8,661 | 3,002 | 5,659 | 2,563 | 789 | 1,774 | ||||||||||||||||||||||
Reservoir Place North | Second Quarter, 2016 | Second Quarter, 2017 | 73,258 | — | (8 | ) | 8 | 225 | 34 | 191 | |||||||||||||||||||||
888 Boylston Street | Third Quarter, 2016 | Third Quarter, 2017 | 417,000 | 10,155 | 174 | 9,981 | 3,957 | 19 | 3,938 | ||||||||||||||||||||||
1,340,536 | $ | 50,727 | $ | 30,682 | $ | 20,045 | $ | 14,640 | $ | 7,476 | $ | 7,164 |
Rental Revenue | Real Estate Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date Commenced Development / Redevelopment | Square Feet | 2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
325 Main Street (1) | May 9, 2019 | 115,000 | $ | — | $ | 36 | $ | (36) | $ | 278 | $ | 281 | $ | (3) | ||||||||||||||||||||||||||||||||||||
200 West Street (2) | September 30, 2019 | 261,000 | 4,900 | 3,826 | 1,074 | 2,168 | 2,565 | (397) | ||||||||||||||||||||||||||||||||||||||||||
880 Winter Street (3) | February 25, 2021 | 224,000 | 2,476 | 6,290 | (3,814) | 1,509 | 2,338 | (829) | ||||||||||||||||||||||||||||||||||||||||||
3625-3635 Peterson Way (4) | April 16, 2021 | 218,000 | 1,753 | 4,619 | (2,866) | 459 | 1,040 | (581) | ||||||||||||||||||||||||||||||||||||||||||
818,000 | $ | 9,129 | $ | 14,771 | $ | (5,642) | $ | 4,414 | $ | 6,224 | $ | (1,810) |
Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||
Name | Date acquired | Square Feet | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
3625-3635 Peterson Way | April 22, 2016 | 218,366 | $ | 4,395 | $ | 2,447 | $ | 1,948 | $ | 876 | $ | 565 | $ | 311 | |||||||||||||||
103 Carnegie Center | May 15, 2017 | 96,332 | 1,052 | — | 1,052 | 444 | — | 444 | |||||||||||||||||||||
314,698 | $ | 5,447 | $ | 2,447 | $ | 3,000 | $ | 1,320 | $ | 565 | $ | 755 |
Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||
Name | Date commenced development / redevelopment | Square Feet | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
One Five Nine East 53rd Street (1) | August 19, 2016 | 220,000 | $ | 1,350 | $ | 10,707 | $ | (9,357 | ) | $ | 6,562 | $ | 6,100 | $ | 462 | ||||||||||||||
191 Spring Street (2) | December 29, 2016 | 160,000 | — | 2,652 | (2,652 | ) | 2,821 | 1,511 | 1,310 | ||||||||||||||||||||
145 Broadway (3) | April 6, 2017 | 79,616 | 742 | 2,969 | (2,227 | ) | 1,177 | 1,223 | (46 | ) | |||||||||||||||||||
459,616 | $ | 2,092 | $ | 16,328 | $ | (14,236 | ) | $ | 10,560 | $ | 8,834 | $ | 1,726 |
Rental Revenue | Real Estate Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Date Sold | Property Type | Square Feet | 2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
601, 611 and 651 Gateway | January 28, 2020 | Office | 768,000 | $ | — | $ | 1,946 | $ | (1,946) | $ | — | $ | 881 | $ | (881) | |||||||||||||||||||||||||||||||||||||||||
New Dominion Technology Park | February 20, 2020 | Office | 493,000 | — | 2,551 | (2,551) | — | 772 | (772) | |||||||||||||||||||||||||||||||||||||||||||||||
Capital Gallery (1) | June 25, 2020 | Office | 631,000 | 8,261 | 20,779 | (12,518) | 2,860 | 7,636 | (4,776) | |||||||||||||||||||||||||||||||||||||||||||||||
1,892,000 | $ | 8,261 | $ | 25,276 | $ | (17,015) | $ | 2,860 | $ | 9,289 | $ | (6,429) |
Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||||||
Name | Date Sold | Property Type | Square Feet | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||
415 Main Street | February 1, 2016 | Office | 231,000 | $ | — | $ | 1,675 | $ | (1,675 | ) | $ | — | $ | 412 | $ | (412 | ) | ||||||||||||||||
30 Shattuck Road | April 19, 2017 | Land | N/A | — | — | — | 14 | 35 | (21 | ) | |||||||||||||||||||||||
40 Shattuck Road | June 13, 2017 | Office | 122,000 | 846 | 1,556 | (710 | ) | 599 | 981 | (382 | ) | ||||||||||||||||||||||
Reston Eastgate | August 30, 2017 | Land | N/A | — | — | — | 76 | 98 | (22 | ) | |||||||||||||||||||||||
353,000 | $ | 846 | — | $ | 3,231 | — | $ | (2,385 | ) | $ | 689 | $ | 1,526 | $ | (837 | ) |
The Lofts at Atlantic Wharf | The Avant at Reston Town Center | Signature at Reston | Proto Kendall Square | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change (%) | 2021 | 2020 | Change (%) | 2021 | 2020 | Change (%) | 2021 | 2020 | Change (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average Monthly Rental Rate (1) | $ | 3,459 | $ | 4,424 | (21.8) | % | $ | 2,255 | $ | 2,381 | (5.3) | % | $ | 2,279 | $ | 2,327 | (2.1) | % | $ | 2,577 | $ | 2,865 | (10.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Rental Rate Per Occupied Square Foot | $ | 3.89 | $ | 4.89 | (20.4) | % | $ | 2.46 | $ | 2.61 | (5.7) | % | $ | 2.36 | $ | 2.46 | (4.1) | % | $ | 4.73 | $ | 5.26 | (10.1) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Physical Occupancy (2) | 93.4 | % | 89.0 | % | 4.9 | % | 94.2 | % | 90.2 | % | 4.4 | % | 86.8 | % | 82.0 | % | 5.9 | % | 92.2 | % | 91.2 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Average Economic Occupancy (3) | 91.0 | % | 88.9 | % | 2.4 | % | 93.6 | % | 89.2 | % | 4.9 | % | 83.6 | % | 77.3 | % | 8.2 | % | 91.0 | % | 90.0 | % | 1.1 | % |
The Lofts at Atlantic Wharf | The Avant at Reston Town Center | |||||||||||||||||||||
2017 | 2016 | Percentage Change | 2017 | 2016 | Percentage Change | |||||||||||||||||
Average Monthly Rental Rate (1) | $ | 4,248 | $ | 4,150 | 2.4 | % | $ | 2,391 | $ | 2,375 | 0.7 | % | ||||||||||
Average Rental Rate Per Occupied Square Foot | $ | 4.71 | $ | 4.59 | 2.6 | % | $ | 2.63 | $ | 2.61 | 0.8 | % | ||||||||||
Average Physical Occupancy (2) | 94.4 | % | 96.3 | % | (2.0 | )% | 93.8 | % | 94.2 | % | (0.4 | )% | ||||||||||
Average Economic Occupancy (3) | 95.3 | % | 97.3 | % | (2.1 | )% | 92.9 | % | 94.1 | % | (1.3 | )% |
2017 | 2016 | Percentage Change | 2021 | 2020 | Change (%) | ||||||||||||||||||||||||||
Occupancy | 81.0 | % | 82.2 | % | (1.5 | )% | Occupancy | 27.8 | % | 19.8 | % | 40.4 | % | ||||||||||||||||||
Average daily rate | $ | 273.96 | $ | 269.10 | 1.8 | % | Average daily rate | $ | 192.67 | $ | 211.36 | (8.8) | % | ||||||||||||||||||
Revenue per available room, REVPAR | $ | 221.98 | $ | 221.28 | 0.3 | % | |||||||||||||||||||||||||
REVPAR | REVPAR | $ | 53.59 | $ | 41.85 | 28.1 | % |
Portfolio | Depreciation and Amortization for the nine months ended September 30, | |||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Same Property Portfolio (1) | $ | 498,208 | $ | 498,585 | $ | (377) | ||||||||||||||
Properties Acquired Portfolio | 4,742 | — | 4,742 | |||||||||||||||||
Properties Placed In-Service Portfolio | 14,936 | 5,144 | 9,792 | |||||||||||||||||
Properties in Development or Redevelopment Portfolio (2) | 20,855 | 8,397 | 12,458 | |||||||||||||||||
Properties Sold Portfolio | 1,074 | 3,612 | (2,538) | |||||||||||||||||
$ | 539,815 | $ | 515,738 | $ | 24,077 |
Depreciation and Amortization Expense for the nine months ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
(in thousands) | ||||||||||||
Same Property Portfolio | $ | 445,553 | $ | 454,110 | $ | (8,557 | ) | |||||
Properties Placed in-Service Portfolio | 10,881 | 5,741 | 5,140 | |||||||||
Properties Acquired Portfolio | 3,658 | 1,719 | 1,939 | |||||||||
Properties in Development or Redevelopment Portfolio (1) | 2,924 | 54,093 | (51,169 | ) | ||||||||
Properties Sold Portfolio | 272 | 708 | (436 | ) | ||||||||
$ | 463,288 | $ | 516,371 | $ | (53,083 | ) |
Portfolio | Depreciation and Amortization for the nine months ended September 30, | |||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Same Property Portfolio (1) | $ | 491,648 | $ | 493,247 | $ | (1,599) | ||||||||||||||
Properties Acquired Portfolio | 4,742 | — | 4,742 | |||||||||||||||||
Properties Placed In-Service Portfolio | 14,936 | 5,144 | 9,792 | |||||||||||||||||
Properties in Development or Redevelopment Portfolio (2) | 20,855 | 8,397 | 12,458 | |||||||||||||||||
Properties Sold Portfolio | 1,074 | 3,612 | (2,538) | |||||||||||||||||
$ | 533,255 | $ | 510,400 | $ | 22,855 |
Depreciation and Amortization Expense for the nine months ended September 30, | ||||||||||||
2017 | 2016 | Change | ||||||||||
(in thousands) | ||||||||||||
Same Property Portfolio | $ | 439,367 | $ | 448,155 | $ | (8,788 | ) | |||||
Properties Placed in-Service Portfolio | 10,881 | 5,741 | 5,140 | |||||||||
Properties Acquired Portfolio | 3,658 | 1,719 | 1,939 | |||||||||
Properties in Development or Redevelopment Portfolio (1) | 2,924 | 50,911 | (47,987 | ) | ||||||||
Properties Sold Portfolio | 272 | 708 | (436 | ) | ||||||||
$ | 457,102 | $ | 507,234 | $ | (50,132 | ) |
Component | Change in interest expense for the nine months ended September 30, 2017 compared to September 30, 2016 | |||
(in thousands) | ||||
Increases to interest expense due to: | ||||
Issuance of $1.0 billion in aggregate principal of 2.750% senior notes due 2026 on August 17, 2016 | $ | 20,797 | ||
Refinancing of the debt collateralized by 767 Fifth Avenue (the General Motors Building) (1) | 10,251 | |||
Issuance of $1.0 billion in aggregate principal of 3.650% senior notes due 2026 on January 20, 2016 | 1,953 | |||
Utilization of the Unsecured Line of Credit as well as an increase in capacity due to the execution of the 2017 Credit Facility (1) | 1,879 | |||
Amortization of deferred financing fees for BPLP’s unsecured debt and credit facility | 1,036 | |||
Other interest expense (excluding senior notes) | 203 | |||
Total increases to interest expense | 36,119 | |||
Decreases to interest expense due to: | ||||
Repayment of mortgage financings (2) | (44,900 | ) | ||
Increase in capitalized interest (3) | (14,330 | ) | ||
Decrease in the interest for the Outside Members’ Notes Payable for the 767 Fifth Avenue (the General Motors Building) (4) | (9,133 | ) | ||
Total decreases to interest expense | (68,363 | ) | ||
Total change in interest expense | $ | (32,244 | ) |
Name | Date Sold | Property Type | Square Feet | Sale Price | Cash Proceeds | Gain on Sale of Real Estate | |||||||||||||
(dollars in millions) | |||||||||||||||||||
2017 | |||||||||||||||||||
30 Shattuck Road | April 19, 2017 | Land | N/A | $ | 5.0 | $ | 5.0 | $ | 3.7 | ||||||||||
40 Shattuck Road | June 13, 2017 | Office | 122,000 | 12.0 | 11.9 | — | (1) | ||||||||||||
Reston Eastgate | August 30, 2017 | Land | N/A | 14.0 | 13.2 | 2.8 | |||||||||||||
$ | 31.0 | $ | 30.1 | $ | 6.5 | (2) | |||||||||||||
2016 | |||||||||||||||||||
415 Main Street | February 1, 2016 | Office | 231,000 | $ | 105.4 | $ | 104.9 | $ | 60.8 | ||||||||||
Broad Run Business Park | August 16, 2016 | Land | N/A | 18.0 | 17.9 | 13.0 | |||||||||||||
$ | 123.4 | $ | 122.8 | $ | 73.8 | (3) |
Name | Date Sold | Property Type | Square Feet | Sale Price | Net Cash Proceeds | Gain (Loss) on Sale of Real Estate | |||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
6595 Springfield Center Drive | December 13, 2018 | Office | 634,000 | N/A | N/A | $ | 8.1 | (1) | |||||||||||||||||||||||||||||||||
N/A | N/A | $ | 8.1 | ||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||
601, 611 and 651 Gateway | January 28, 2020 | Office | 768,000 | $ | 350.0 | $ | — | $ | 217.7 | ||||||||||||||||||||||||||||||||
New Dominion Technology Park | February 20, 2020 | Office | 493,000 | 256.0 | 254.0 | 192.3 | |||||||||||||||||||||||||||||||||||
Capital Gallery | June 25, 2020 | Office | 455,000 | 253.7 | 246.6 | 203.6 | |||||||||||||||||||||||||||||||||||
$ | 859.7 | $ | 500.6 | $ | 613.6 | (2) |
Name | Date Sold | Property Type | Square Feet | Sale Price | Cash Proceeds | Gain on Sale of Real Estate | |||||||||||||
(dollars in millions) | |||||||||||||||||||
2017 | |||||||||||||||||||
30 Shattuck Road | April 19, 2017 | Land | N/A | $ | 5.0 | $ | 5.0 | $ | 3.7 | ||||||||||
40 Shattuck Road | June 13, 2017 | Office | 122,000 | 12.0 | 11.9 | 0.6 | |||||||||||||
Reston Eastgate | August 30, 2017 | Land | N/A | 14.0 | 13.2 | 2.8 | |||||||||||||
$ | 31.0 | $ | 30.1 | $ | 7.1 | (1) | |||||||||||||
2016 | |||||||||||||||||||
415 Main Street | February 1, 2016 | Office | 231,000 | $ | 105.4 | $ | 104.9 | $ | 63.0 | ||||||||||
Broad Run Business Park | August 16, 2016 | Land | N/A | 18.0 | 17.9 | 13.0 | |||||||||||||
$ | 123.4 | $ | 122.8 | $ | 76.0 | (2) |
Name | Date Sold | Property Type | Square Feet | Sale Price | Net Cash Proceeds | Gain (Loss) on Sale of Real Estate | |||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||||||||||||||||||
6595 Springfield Center Drive | December 13, 2018 | Office | 634,000 | N/A | N/A | $ | 8.1 | (1) | |||||||||||||||||||||||||||||||||
N/A | N/A | $ | 8.1 | ||||||||||||||||||||||||||||||||||||||
2020 | |||||||||||||||||||||||||||||||||||||||||
601, 611 and 651 Gateway | January 28, 2020 | Office | 768,000 | $ | 350.0 | $ | — | $ | 222.4 | ||||||||||||||||||||||||||||||||
New Dominion Technology Park | February 20, 2020 | Office | 493,000 | 256.0 | 254.0 | 197.1 | |||||||||||||||||||||||||||||||||||
Capital Gallery | June 25, 2020 | Office | 455,000 | 253.7 | 246.6 | 207 | |||||||||||||||||||||||||||||||||||
$ | 859.7 | $ | 500.6 | $ | 626.5 | (2) |
(1)On December 13, 2018, we sold our 6595 Springfield Center Drive development project located in Springfield, Virginia. Concurrently with the sale, we agreed to act as development manager and guaranteed the completion of the project (See Note 9 to the Consolidated Financial Statements). The development project achieved final completion during the third quarter of 2021 and, upon completion of the project, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, we recognized a gain of approximately $8.1 million. (2)Excludes approximately $0.2 million of gains on sales of real estate recognized during the nine months ended September 30, 2020 related to gain amounts from sales of real estate occurring in the prior year. 67 Interest and Other Income (Loss) Interest and other income (loss) decreased by approximately $0.1 million for the nine months ended September 30, 2021 compared to 2020, due primarily to a decrease of approximately $2.9 million in interest income as a result of lower interest earned on our deposits, partially offset by an approximately $2.8 million decrease in the allowance for current expected credit losses, which results in higher income. On January 1, 2020, we adopted Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”) and, as a result, we were required to record an allowance for current expected credit losses related to our outstanding (1) related party note receivable, (2) notes receivable and (3) off-balance sheet credit exposures. Gains from Investments in Securities Gains from investments in securities for the nine months ended September 30, 2021 and 2020 related to investments that we have made to reduce our market risk relating to deferred compensation plans that we maintain for BXP’s officers and former non-employee directors. Under the deferred compensation plans, each officer or non-employee director who is eligible to participate is permitted to defer a portion of the officer’s current income or the non-employee director’s compensation on a pre-tax basis and receive a tax-deferred return on these deferrals based on the performance of specific investments selected by the officer or non-employee director. In order to reduce our market risk relating to these plans, we typically acquire, in a separate account that is not restricted as to its use, similar or identical investments as those selected by each officer or non-employee director. This enables us to generally match our liabilities to BXP’s officers or former non-employee directors under our deferred compensation plans with equivalent assets and thereby limit our market risk. The performance of these investments is recorded as gains from investments in securities. During the nine months ended September 30, 2021 and 2020, we recognized gains of approximately $3.7 million and $1.0 million, respectively, on these investments. By comparison, our general and administrative expense increased by approximately $3.7 million and $1.0 million during the nine months ended September 30, 2021 and 2020, respectively, as a result of increases in our liability under our deferred compensation plans that was associated with the performance of the specific investments selected by officers and former non-employee directors of BXP participating in the plans. Losses From Early Extinguishment of Debt On February 14, 2021, BPLP completed the redemption of $850.0 million in aggregate principal amount of its 4.125% senior notes due May 15, 2021. The redemption price was approximately $858.7 million, which was equal to the stated principal plus approximately $8.7 million of accrued and unpaid interest to, but not including, the redemption date. Excluding the accrued and unpaid interest, the redemption price was equal to the principal amount being redeemed. We recognized a loss from early extinguishment of debt totaling approximately $0.4 million related to unamortized origination costs. On March 16, 2021, BPLP repaid $500.0 million, representing all amounts outstanding on its delayed draw term loan (“Delayed Draw Facility”) under our prior unsecured revolving credit agreement (the “2017 Credit Facility”). We recognized a loss from early extinguishment of debt totaling approximately $0.5 million related to unamortized financing costs. 68 Interest Expense Interest expense increased by approximately $0.3 million for the nine months ended September 30, 2021 compared to 2020, as detailed below.
_______________ (1)On June 15, 2021, BPLP entered into the 2021 Credit Facility, which replaced the 2017 Credit Facility (See Note 8 to the Consolidated Financial Statements). Interest expense directly related to the development of rental properties is capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the real estate or lease term. As portions of properties are placed in-service, we cease capitalizing interest on that portion and interest is then expensed. Interest capitalized for the nine months ended September 30, 2021 and 2020 was approximately $36.6 million and $41.3 million, respectively. These costs are not included in the interest expense referenced above. On October 15, 2021, BPLP used available cash and funds under its 2021 Credit Facility to complete the redemption of $1.0 billion in aggregate principal amount of its 3.85% senior notes due February 1, 2023. The redemption price was approximately $1.05 billion, which was equal to par plus approximately $7.9 million of accrued and unpaid interest to, but not including, the redemption date and an early redemption premium and unamortized financing costs totaling approximately $43.9 million. We expect to recognize a loss from early extinguishment of debt related primarily to the payment of the redemption premium in the fourth quarter. At September 30, 2021, our variable rate debt consisted of BPLP’s $1.5 billion revolving facility (the “Revolving Facility”). The Revolving Facility did not have an outstanding balance as of September 30, 2021. For a summary of our consolidated debt as of September 30, 2021 and September 30, 2020 refer to the heading “Liquidity and Capital Resources—Capitalization—Debt Financing” within “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations.” 69 Noncontrolling Noncontrolling interests in property partnerships increased by approximately
Noncontrolling For BXP, noncontrolling Results of Operations for the Three Months Ended September 30, Net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders increased approximately Below are reconciliations of net income attributable to Boston Properties, Inc. common shareholders to NOI and net income attributable to Boston Properties Limited Partnership common unitholders to NOI for the three months ended September 30, 59. 70 Boston Properties, Inc.
71 Boston Properties Limited Partnership
Comparison of the three months ended September 30, The table below shows selected operating information for the Same Property Portfolio and the Total Property Portfolio. The Same Property Portfolio consists of 72
_______________ (1)Rental Revenue is equal to Revenue less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Revenue per the Consolidated Statements of Operations, excluding the residential and hotel revenue that is noted below. We use Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provides investors with information regarding our performance that is not immediately apparent from the comparable non-GAAP measures and allows investors to compare operating performance between periods. (2)For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 59. Residential Net Operating Income for the three months ended September 30, 2021 and 2020 is comprised of Residential Revenue of $10,894 and $9,718 less Residential Expenses of $6,045 and $4,955, respectively. Hotel Net Operating Income (Loss) for the three months ended September 30, 2021 and 2020 is comprised of Hotel Revenue of $5,189 and $90 less Hotel Expenses of $3,946 and $3,164, respectively, per the Consolidated Statements of Operations. 73
Same Property Portfolio We continue to evaluate the collectability of our accrued rent and accounts receivable balances related to lease revenue. If after a write-off has been recorded, (1) we subsequently determine that we are probable we will collect substantially all the remaining lessee’s lease payments under the lease term and (2) the lease has not been modified since the write-off, we will then reinstate the accrued rent and accounts receivable write-offs, adjusting for the amount related to the period when the lease payments were considered not probable of collection. If our estimate of collectability differs from the cash received, then the timing and amount of our reported revenue could be impacted. Each quarter since the second quarter of 2020, the number of executed COVID-19 lease modifications has decreased and as of the third quarter of 2021, we are executing COVID-19 modifications on a limited basis. Termination Income Termination income Termination income for the three months ended September 30, Termination income for the three months ended September 30, Parking and Other Revenue Parking and other revenue increased by approximately $7.1 million for the three months ended September 30, 2021 compared to 2020. Parking revenue and other revenue increased by approximately $6.3 million and $0.8 Real Estate Operating Expenses Real estate operating expenses from the Same Property Portfolio City. The HVAC. 74
Properties Acquired Portfolio The table below lists the properties acquired between July 1,
Properties The table below lists the properties
(1)This is the low-rise portion of 601 Lexington Avenue, which was in development for the three months ended September 30, 2020. Properties in Development or Redevelopment Portfolio The table below lists the properties that were in development or redevelopment between July 1, 2020 and September 30, 2021. Rental revenue and real estate operating expenses from our Properties in Development or Redevelopment Portfolio decreased by approximately $3.0 million and $0.9 million, respectively, for the three months ended September 30, 2021 compared to 2020.
75
(1)Real estate operating expenses for the three months ended September 30, 2021 and 2020 were related to demolition costs. (2)Conversion of a 126,000 square foot portion of the property to life sciences space from office space. (3)On February 25, 2021, we commenced the redevelopment and conversion of 880 Winter Street, a 224,000 square foot office property located in Waltham, Massachusetts, to laboratory space. (4)On April 16, 2021, we removed 3625-3635 Peterson Way, located in Santa Clara, California, from our in-service portfolio. We are demolishing the building and expect to redevelop the site at a future date. Residential Net Operating Income Net operating income for our residential same properties The following reflects our occupancy and rate information for The Lofts at Atlantic Wharf,
the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP, by (B) the number of occupied units for each month within the applicable fiscal period. (2)Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage.
(3)Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue. Market Rents used by us in calculating Economic Occupancy are based on the current market rates set by the managers of our residential properties based on their experience in renting their residential property’s units and publicly available market data. Actual market rents and trends in such rents for a region as reported by others may vary materially from Market Rents used by us. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions. Hotel Net Operating Income (Loss) The Boston Marriott Cambridge closed in March 2020 due to The following reflects our occupancy and rate information for the Boston Marriott Cambridge hotel for the three months ended September 30, 76
Other Operating Revenue and Expense Items Development and Management Services Revenue Development and management services revenue General and Administrative Expense General and administrative expense increased by approximately Wages directly related to the development Depreciation and Amortization Expense Depreciation expense may differ between BXP and BPLP as a result of previously applied acquisition accounting by BXP for the issuance of common stock in connection with non-sponsor OP Unit redemptions by BPLP. This accounting resulted in a step-up of the real estate assets at BXP that was allocated to certain properties. The difference between the real estate assets of BXP as compared to BPLP for certain properties having an allocation of the real estate step-up will result in a corresponding difference in depreciation expense. For additional information see the Explanatory Note that follows the cover page of this Quarterly Report on Form 10-Q. Boston Properties, Inc. Depreciation and amortization expense 77
Boston Properties Limited Partnership Depreciation and amortization expense
We have determined that amounts reimbursed for payroll and related costs received from third parties in connection with management services contracts should be reflected on a gross basis instead of on a net basis as we have determined that we are the principal under these arrangements. We anticipate that these two financial statement line items will generally offset each other. Other Income and Expense Items Gains (Losses) on Sales of Real Estate Gains (losses) on sales of real estate increased by approximately $0.6 million for the three months ended September 30, Interest and Other Income (Loss) Interest and other income allowance for current 78 On Gains (Losses) from Investments in Securities Gains (losses) from investments in securities for the three months ended September 30, plans. 79 Interest Expense Interest expense decreased by approximately
(1) On June 15, 2021, BPLP entered into the 2021 Credit Facility, which replaced the 2017 Credit Facility (See Note 8 to the Consolidated Financial Statements). Interest expense directly related to the development of rental properties is capitalized and included in real estate assets on our Consolidated Balance Sheets and amortized over the useful lives of the real estate or lease term. As portions of properties are placed in-service, we cease capitalizing interest on On October 15, 2021, BPLP used available cash and funds under its 2021 Credit Facility to complete the redemption of $1.0 billion in aggregate principal amount of its 3.85% senior notes due February 1, 2023. The redemption price was approximately $1.05 billion, which was equal to par plus approximately $7.9 million of accrued and unpaid interest to, but not including, the redemption date and an early redemption premium and unamortized financing costs totaling approximately $43.9 million. We expect to recognize a loss from early extinguishment of debt related primarily to the payment of the redemption premium in the fourth quarter. At September 30, 80
Noncontrolling interests in property partnerships increased by approximately
_______________ (1)The increase was primarily attributable to an increase in lease revenue from our tenants.
Noncontrolling Interest—Common Units of For BXP, noncontrolling Liquidity and Capital Resources General Our principal liquidity needs for the next twelve months and beyond are to: •fund normal recurring expenses; •meet debt service and principal repayment obligations, including balloon payments on maturing debt; •fund development and redevelopment costs; •fund capital expenditures, including major renovations, tenant improvements and leasing costs; •fund •make the minimum distribution required to enable BXP to maintain its REIT qualification under the Internal Revenue Code of 1986, as amended. We expect to satisfy these needs using one or more of the following: •cash flow from operations; •distribution of cash flows from joint ventures; •cash and cash equivalent balances; •borrowings under BPLP’s facilities and construction loans; •long-term secured and unsecured indebtedness (including unsecured exchangeable indebtedness); •sales of real BXP equity securities and/or preferred or common units of partnership interest in BPLP. We draw on multiple financing sources to fund our long-term capital needs. 81 The following table presents information on properties under construction and redevelopment as of September 30,
___________ (1)Represents our share. (2)Investment to Date, Estimated Total Investment and Estimated Future Equity Requirement all include our share of acquisition expenses, as applicable, and reflect our share of the estimated net revenue/expenses that we expect to incur prior to stabilization of the project, including any amounts actually received or paid through September 30, 2021. (3)Includes approximately $77.8 million of unpaid but accrued construction costs and leasing commissions. (4)Excludes approximately $77.8 million of unpaid but accrued construction costs and leasing commissions. (5)Represents percentage leased as of November 2, 2021, including leases with future commencement dates. (6)This property was 79% placed in-service as of September 30, 2021. (7)On October 29, 2021, this project was fully placed in-service (See Note 15 to the Consolidated Financial Statements). (8)On October 19, 2021, approximately 285,000 square feet of the project was placed in-service. (9)Represents a portion of the property under redevelopment for conversion to laboratory space. (10)Percentage leased excludes View Boston Observatory at The Prudential Center (redevelopment) at 800 Boylston Street - The Prudential Center. 82 Material adverse changes in one or more sources of capital, whether due to the impacts of the COVID-19 pandemic or otherwise, may adversely affect our net cash flows. Leasing activity and revenue from transient parking and our Our primary uses of capital over the next twelve months will be the completion of our current and committed development and redevelopment As of September 30, During the third quarter We have a SCP that provides us the opportunity to partner with large institutional investors and capitalize our investment opportunities partially through private equity. The SCP enhances our access to capital and investment capacity and further enhances our returns through fees paid to us, and in certain partnerships, a greater share of income upon achieving certain success criteria. These large financial partners include some of the world’s largest sovereign wealth funds and pension plans. Our use of the SCP is consistent with our ongoing strategy to create value through opportunistic investments in high-quality office properties in markets with the For example, during the third quarter of 2021, we partnered with two SCP partners to acquire Safeco Plaza, a 50-story, approximately 765,000 net rentable square foot, LEED-Platinum certified, Class A office property located in Seattle, Washington. After mortgage financing, In addition, we expect to acquire 360 Park Avenue South, located in 83 On October 25, 2021, we completed the sale of our 181, 191 and 201 Spring Street properties, located in Lexington, Massachusetts, for a gross sales price of $191.5 million. We have no debt maturities during the remainder of 2021. We have one loan maturing in 2022 that has an outstanding principal balance of approximately $618.7 million Although the current and future impact of COVID-19 on our liquidity and capital resources will depend on a We have not sold any shares under REIT Tax Distribution Considerations Dividend BXP as a REIT is subject to a number of organizational and operational requirements, including a requirement that BXP currently distribute at least 90% of its annual taxable income (excluding capital gains and with certain other adjustments). Our policy is for BXP to distribute at least 100% of its taxable income, including capital gains, to avoid paying federal tax. BXP’s Board of Directors will continue to evaluate BXP’s materially from the current quarterly dividend amount. Sales To the extent that we sell assets at a gain and cannot efficiently use the proceeds in a tax deferred manner for either our development activities or attractive acquisitions, BXP would, at the appropriate time, decide whether it is better to declare a special dividend, adopt a stock repurchase program, reduce indebtedness or retain the cash for future investment opportunities. Such a decision will depend on many factors including, among others, the timing, availability and terms of development and acquisition opportunities, our then-current and anticipated leverage, the cost and availability of capital from other sources, the price of BXP’s common stock and REIT distribution requirements. At a minimum, we expect that BXP would distribute at least that amount of proceeds necessary for BXP to avoid paying corporate level tax on the applicable gains realized from any asset sales. From time to time in select cases, whether due to a change in use, structuring issues to comply with applicable REIT regulations or other reasons, we may sell an asset that is held by a taxable REIT subsidiary (“TRS”). Such a sale by a TRS would be subject to federal and local taxes. Cash Flow Summary The following summary discussion of our cash flows is based on the Consolidated Statements of Cash Flows and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below. 84 Cash and cash equivalents
Our principal source of cash flow is related to the operation of our properties. The The full extent of the impact of COVID-19 on our business, operations and Cash is used in investing activities to fund acquisitions, development, net investments in unconsolidated joint ventures and maintenance and repositioning capital expenditures. We selectively invest in new projects that enable us to take advantage of our development, leasing, financing and property management skills and invest in existing buildings to enhance or maintain
85 Cash used in investing activities changed primarily due to the following:
(1)On On June 2, 2021, we acquired 153 & 211 Second Avenue located in On July 31, 2020, we acquired an undivided ownership interest in real property at 759 Harrison Street located in San Francisco, California for a purchase price totaling approximately $2.3 million. On June 26, 2020, we completed the acquisition of real property at 777 Harrison Street (known as Fourth + Harrison and formerly known as 425 Fourth Street) located in San Francisco, California for a gross purchase price, including entitlements, totaling approximately $140.1 million. Fourth + Harrison is expected to support the development of approximately 804,000 square feet of primarily commercial office space. (2)Construction in progress for the nine months ended September 30, Construction in progress for the nine months ended September 30, 2020 includes ongoing expenditures associated with 17Fifty Presidents Street, 20 CityPoint and The Skylyne, which were partially or fully placed in-service during the nine months ended September 30, (3)On June On (4)Capital contributions to unconsolidated joint ventures for the nine months ended September 30, 2021 consisted primarily of cash contributions of approximately $72.6 million and $11.4 million to our Capital contributions to unconsolidated joint ventures for (5)Capital 86 net proceeds from the sale of Annapolis Junction Building Eight and two land parcels after the pay down of the mortgage loan and (3) approximately $14.0 million (6)On (7)Issuance of notes receivable, net consisted of the $10.0 million of financing provided to an affiliate of our partner in the joint venture that owns and is developing 7750 Wisconsin Avenue located in Bethesda, Maryland.The financing bears interest at a fixed rate of 8.00% per annum, compounded monthly, and matures on the fifth anniversary of the date on which the base building of the affiliate of our partner’s hotel property is substantially completed.The loan is collateralized by a pledge of the partner’s equity interest in our joint venture that owns and is developing 7750 Wisconsin Avenue. Cash Capitalization The following table presents Consolidated Market Capitalization and BXP’s Share of Market Capitalization, as well as the corresponding ratios of Consolidated Debt to Consolidated Market Capitalization and BXP’s Share of Debt to BXP’s Share of Market Capitalization
_______________ (1)Values are based on the closing price per share of BXP’s Common Stock on the New York Stock Exchange on September 30, 2021 of $108.35. (2)Includes long-term incentive plan units (including 2012 OPP Units and 2013 - 2018 MYLTIP Units) but excludes MYLTIP Units granted between 2019 and 2021 because the three-year performance period has not ended. 87 (3)See page 92 for additional information. (4)See page 91 for additional information. Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT (1) our consolidated debt; plus (2) the product of (x) the closing price per share of BXP common stock on September 30,
(ii) the number of outstanding OP Units in BPLP (excluding OP Units held by BXP), (iii) the number of OP Units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, and (iv) the number of OP Units issuable upon conversion of 2012 OPP Units, 2013 - 2018 MYLTIP Units that were issued in the form of LTIP Units. The calculation of consolidated market capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, We also present BXP’s Share of Market Capitalization and BXP’s Share of Debt/BXP’s Share of Market Capitalization, which We present these supplemental ratios because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of BXP and as such will fluctuate with changes in such price, and they do not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations. However, for a company like BXP, whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are evaluated along with the ratio of indebtedness to other measures of asset 88 value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness. For a discussion of our unconsolidated joint venture indebtedness, see “Liquidity and Capital Resources—Capitalization—Off-Balance Sheet Arrangements—Joint Venture Indebtedness” within “Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations” and for a discussion of our consolidated joint venture indebtedness see “Liquidity and Capital Resources—Capitalization—Mortgage Notes Payable Debt Financing As of September 30, maturities in The table below summarizes the aggregate carrying value of our mortgage 2020. 89
_______________ (1)See page 92 for additional information. (2)See page 91 for additional information. Unsecured Credit Facility On On June 15, 2021, BPLPamended and restated the 2017 Credit Facility and entered into the 2021 Credit Facility. The 2021 Credit Facility provides for borrowings of up to $1.5 billion through the Revolving Facility, subject to customary conditions. Among other things, the 90 increasing the amount of the Revolving Facility and/or by incurring one or more term loans, in each case, subject to syndication of the increase and other conditions (See Note 8 to the Consolidated Financial Statements). The 2021 Credit Facility replaces the 2017 Credit Facility, which consisted of a $1.5 billion unsecured revolving line of credit and a $500.0 million Delayed Draw Facility, As of September 30, Unsecured Senior Notes On February 14, 2021, BPLP completed the redemption of $850.0 million in On March 16, 2021, BPLP completed a public offering of $850.0 million in aggregate principal amount of its 2.550% unsecured senior notes due 2032. The notes were priced at 99.570% of the principal amount to yield an effective rate (including financing fees) of approximately 2.671% per annum to maturity. The notes will mature on April 1, 2032, unless earlier redeemed. The aggregate net proceeds from the offering were approximately $839.2 million after deducting underwriting discounts and transaction expenses.
The indenture relating to the unsecured senior notes contains certain financial restrictions and requirements, including (1) a leverage ratio not to exceed 60%, (2) a secured debt leverage ratio not to exceed 50%, (3) an interest coverage ratio of greater than 1.50, and (4) an unencumbered asset value of not less than 150% of unsecured debt. At September 30, Mortgage Notes Payable The following represents the outstanding principal balances due under the mortgage notes payable at September 30,
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_______________ (1)GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions (if any). (2)The mortgage loan requires interest only payments with a balloon payment due at maturity. (3)This property is owned by a consolidated entity in which we have a 60% interest. The partners’ share of the carrying amount has been adjusted for basis differentials. (4)In connection with the refinancing of the loan, we guaranteed the consolidated entity’s obligation to fund various reserves for tenant improvement costs and allowances, leasing commissions and free rent obligations in lieu of cash deposits. As of September 30, 2021, the maximum funding obligation under the guarantee was approximately $20.3 million. We earn a fee from the joint venture for providing the guarantee and have an agreement with our partners to reimburse the joint venture for their share of any payments made under the guarantee (See Note 9 to the Consolidated Financial Statements). (5)This property is owned by a consolidated entity in which we have a 55% interest. Off-Balance Sheet Arrangements—Joint Venture Indebtedness We have investments in unconsolidated joint ventures with our effective ownership interests ranging from 20% to
_______________ (1)GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees. (2)The loan requires interest only payments with a balloon payment due at maturity. 92 (3)The loan bears interest at a variable rate equal to LIBOR plus 1.28% per annum and matures on July 19, 2025. A subsidiary of the joint venture entered into interest rate swap contracts with notional amounts aggregating $300.0 million through April 1, 2025, resulting in a fixed rate of approximately 4.063% per annum through the expiration of the interest rate swap contracts. (4)The loan bears interest at a variable rate equal to (1) the greater of (x) LIBOR or (y) 0.50%, plus (2) 2.30% per annum and matures on November 10, 2025, with one, one-year extension option, subject to certain conditions.
(6)The construction financing had a borrowing capacity of $204.6 million. On September 16, 2019, the joint venture paid down the construction loan principal balance in the amount of approximately $28.8 million, reducing the borrowing capacity to $175.8 million. The construction financing bears interest at a variable rate equal to LIBOR plus 2.25% per annum and matures on September 6, 2023. $400.0 million. The construction financing bears interest at a variable rate equal to LIBOR plus 1.50% per annum (LIBOR plus 1.375% per annum upon stabilization, as defined in the loan agreement) and matures on September 5, 2023, with two, one-year extension options, subject to certain conditions. (9)The construction financing has a borrowing capacity of $255.0 million. The construction financing bears interest at a variable rate equal to LIBOR plus 1.25% per annum and matures on April 26, 2023, with two, one-year extension options, subject to certain conditions. (10)The loan bears interest at a variable rate equal to the greater of (x) 2.35% or (y) LIBOR plus 2.20% per annum and matures on September 1, 2026. (11)We provided $80.0 million of mortgage financing to the joint venture. The loan bears interest at a variable rate equal to LIBOR plus 3.50% per annum and matures on July 13, 2023, with extension options, subject to certain conditions. The loan has been reflected as Related Party Note Receivable, Net on our Consolidated Balance Sheets. As of September 30, 2021, the loan has approximately $13.1 million of accrued interest due at the maturity date. (12)The loan bears interest at a variable rate equal to (1) the greater of (x) LIBOR or (y) 0.65%, plus (2) 4.75% per annum and matures on July 7, 2022 with two, one-year extension options, subject to certain conditions. The joint venture entered into an interest rate cap agreement with a financial institution to limit its exposure to increases in the LIBOR rate at a cap of 3.00% per annum on a notional amount of $325.0 million through July 7, 2022. State and Local Tax Matters Because BXP is organized and qualifies as a REIT, it is generally not subject to federal income taxes, but Insurance Funds from Operations Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“ 93 of REIT operating results more meaningful. Management generally considers FFO to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO can help investors compare the operating performance of a Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current operations is discussed throughout this report. The full extent of the impact of COVID-19 on our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict. Boston Properties, Inc. The following table presents a reconciliation of net income attributable to Boston Properties, Inc. common shareholders to FFO attributable to Boston Properties, Inc. common shareholders for the three months ended September 30,
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Reconciliation to Diluted Funds from Operations:
_______________ Boston Properties Limited Partnership The following table presents a reconciliation of net income attributable to Boston Properties Limited Partnership common unitholders to FFO attributable to Boston Properties Limited Partnership common unitholders for the three months ended September 30,
_______________ (1)Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units and vested 2013 - 2018 MYLTIP Units). 95
Reconciliation to Diluted Funds from Operations:
Contractual Obligations We have various service contracts with vendors related to our property management. In addition, we have certain other contracts we enter into in the ordinary course of business that may extend beyond one year. These contracts include terms that provide for cancellation with insignificant or no cancellation penalties. Contract terms are generally between three and five years. During the In addition, during the three months ended September 30, 2021, we and our unconsolidated joint venture partners incurred approximately development properties are included within the projects’ “Estimated Total Investment” referred to in “Item 2—Management’s Discussion and Analysis of Financial 96 ITEM 3—Quantitative and Qualitative Disclosures about Market Risk. The following table presents the aggregate carrying value of our mortgage notes payable, net, unsecured senior notes, net, unsecured line of credit and our corresponding estimate of fair value as of September 30, The table below does not include our unconsolidated joint venture debt. For a discussion concerning our unconsolidated joint venture debt, see Note
At September 30, The fair value amounts were determined solely by considering the impact of hypothetical interest rates on our financial instruments. Due to the uncertainty of specific actions, we may undertake to minimize possible effects of market interest rate increases, this analysis assumes no changes in our financial structure. On March 5, 2021, the Financial Conduct Authority (“FCA”) announced that USD LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from LIBOR to the Secured Overnight Financing Rate (“SOFR”). Additionally, banking regulators are encouraging banks to discontinue new LIBOR debt issuances by December 31, 2021. We anticipate that LIBOR will continue to be available at least until June 30, 2023. Any changes adopted by the FCA or other governing bodies in the method used for determining LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR. If that were to occur, our interest payments could change. In addition, uncertainty about the extent and manner of future changes may result in interest rates and/or payments that are higher or lower than if LIBOR were to remain available in its current form. We and our unconsolidated joint ventures have contracts that are indexed to LIBOR and we are monitoring and evaluating the related risks. These risks arise in connection with transitioning contracts to an alternative rate, including any resulting value transfer that may occur, and are likely to vary by contract. The value of loans, securities, or derivative instruments tied to LIBOR, as well as interest rates on our unconsolidated joint ventures current or future indebtedness, may also be impacted if LIBOR is limited or discontinued. For some instruments the method of transitioning to an alternative reference rate may be challenging, especially if we cannot agree with the respective counterparty about how to make the transition. While we expect LIBOR to be available in substantially its current form until at least the end of June 30, 2023, it is possible that LIBOR will become unavailable prior to that point. This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified. 97 Alternative rates and other market changes related to the replacement of LIBOR, including the introduction of financial products and changes in market practices, may lead to risk modeling and valuation challenges, such as adjusting interest rate accrual calculations and building a term structure for an alternative rate. The introduction of an alternative rate also may create additional basis risk and increased volatility as alternative rates are phased in and utilized in parallel with LIBOR. Adjustments to systems and mathematical models to properly process and account for alternative rates will be required, which may strain the model risk management and information technology functions and result in substantial incremental costs for us. ITEM 4—Controls and Procedures. Boston Properties, Inc. (a) Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, our management, with the participation of Boston Properties, Inc.’s Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of (b) Changes in Internal Control Over Financial Reporting. No change in Boston Properties, Inc.’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of Boston Properties Limited Partnership (a) Evaluation of Disclosure Controls and Procedures. As of the end of the period covered by this report, the management of Boston Properties, Inc., the sole general partner of Boston Properties Limited Partnership, with the participation of its Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of (b) Changes in Internal Control Over Financial Reporting. No change in its internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 98 PART II. OTHER INFORMATION ITEM 1—Legal Proceedings. We are subject to legal proceedings and claims that arise in the ordinary course of business. These matters are generally covered by insurance. Management believes that the final outcome of such matters will not have a material adverse effect on our financial position, results of operations or liquidity. ITEM 1A—Risk Factors. Except to the extent updated below Our use of joint ventures and participation in a co-investment program may limit our flexibility with jointly owned investments and other assets we may wish to acquire. In appropriate circumstances, we intend to acquire and recapitalize or develop, as applicable, properties in joint ventures with other persons or entities. We currently have joint ventures that are and are not consolidated within our financial statements. Our participation in joint ventures subjects us to risks, including but not limited to, the following risks that: •our joint venture partners may have different objectives than we have regarding the appropriate timing and terms of any sale or refinancing of a property, its operation or, if applicable, the commencement of development activities, and we could become engaged in a dispute with any of our joint venture partners that could lead to the sale of either parties’ ownership interest or the property; •some of our joint ventures are subject to debt and, depending on credit market conditions, the refinancing of such debt may require equity capital calls; •our joint venture partners may be structured differently than us for tax purposes and this could create conflicts of interest, including with respect to our compliance with the REIT requirements, and our REIT status could be jeopardized if any of our joint ventures do not operate in compliance with REIT requirements; •our joint venture partners may have competing interests in our markets that could create conflicts of interest; •our joint venture partners may default on their obligations, which could necessitate that we fulfill their obligation ourselves; •our joint ventures may be unable to repay any amounts that we may loan to them; •our joint venture agreements may contain provisions limiting the liquidity of our interest for sale or sale of the entire asset; •our subsidiaries that would be the general partner or managing member of the joint ventures could be generally liable, under applicable law or the governing agreement of a program venture, for the debts and obligations of the venture, subject to certain exculpation and indemnification rights pursuant to the terms of the governing agreement; •our joint venture agreements may contain provisions that would allow partners to remove us as the general partner or managing member in certain cases involving cause; •while we would have discretion to manage joint ventures for which we are the general partner or managing member, our partner(s)’ approval would be required to approve certain matters, and as a result, we may be unable to cause a joint venture to implement certain decisions that we consider beneficial; and •with respect to our participation in the co-investment program, we could lose opportunities to pursue properties that are within the program’s target investment definition alone or with other partners with whom the terms of the joint venture and/or our returns could be more favorable to us. 99 ITEM 2—Unregistered Sales of Equity Securities and Use of Proceeds Boston Properties, Inc. (a)None. (b)Not Applicable. (c)Issuer Purchases of Equity Securities.
___________ (1)Represents shares of restricted common stock of BXP repurchased in connection with the termination of certain employees’ employment with BXP. Under the terms of the applicable restricted stock award agreements, the shares were repurchased by BXP at a price of $0.01 per share, which was the amount originally paid by such employees for such shares. Boston Properties Limited Partnership (a)Each time BXP issues shares of stock (other than in exchange for common units when such common units are presented for redemption), it contributes the proceeds of such issuance to BPLP in return for an equivalent number of partnership units with rights and preferences analogous to the shares issued. During the three months ended September 30, 2021, in connection with issuances of common stock by BXP pursuant to issuances to employees of restricted common stock under the 2021 Plan and issuances of common stock under the Boston Properties, Inc. 1999 Non-Qualified Employee Stock Purchase Plan, BPLP issued an aggregate of 22,862 common units to BXP in exchange for approximately $452,250, the aggregate proceeds of such common stock issuances to BXP. Such units were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. (b)Not Applicable. (c)Issuer Purchases of Equity Securities.
___________ (1)Includes 105 common units previously held by BXP that were redeemed in connection with the repurchase of shares of restricted common stock of BXP in connection with the termination of a certain employee’s employment with BXP and 745 LTIP units that were repurchased by BPLP in connection with the termination of a certain employee’s employment with BXP. Under the terms of the applicable restricted stock award agreement and LTIP unit vesting agreements, such shares were repurchased at a price of $0.01 per share and such LTIP units were repurchased at a price of $0.25 per LTIP unit, which were the amounts originally paid by such employee for such shares and LTIP units. (2)Includes 2,023 common units previously held by BXP that were redeemed in connection with the repurchase of shares of restricted common stock of BXP in connection with the termination of a certain employee’s employment with BXP and 100 172 LTIP units that were repurchased by BPLP in connection with the termination of a certain employee’s employment with BXP. Under the terms of the applicable restricted stock award agreements and LTIP unit vesting agreement, such shares were repurchased at a price of $0.01 per share and such LTIP units were repurchased at a price of $0.25 per LTIP unit, which were the amounts originally paid by such employee for such shares and LTIP units. ITEM 3—Defaults Upon Senior Securities. None. ITEM 4—Mine Safety Disclosures. None. ITEM 5—Other Information. (a)None. (b)None. 101 ITEM 6—Exhibits. (a)Exhibits
102 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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