Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | BOSTON PROPERTIES INC | |
Amendment Flag | false | |
Entity Central Index Key | 1,037,540 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 153,573,619 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Real estate, at cost | $ 18,207,934 | $ 18,231,978 |
Construction in progress | 880,996 | 736,311 |
Land held for future development | 277,327 | 268,114 |
Less: accumulated depreciation | (3,753,926) | (3,547,659) |
Total real estate | 15,612,331 | 15,688,744 |
Cash and cash equivalents | 1,342,751 | 1,763,079 |
Cash held in escrows | 252,558 | 487,321 |
Investments in securities | 20,953 | 19,459 |
Tenant and other receivables (net of allowance for doubtful accounts of $1,061 and $1,142, respectively) | 55,183 | 46,595 |
Accrued rental income (net of allowance of $1,219 and $1,499, respectively) | 730,797 | 691,999 |
Deferred charges, net | 771,419 | 831,744 |
Prepaid expenses and other assets | 117,993 | 164,432 |
Investments in unconsolidated joint ventures | 209,974 | 193,394 |
Total assets | 19,113,959 | 19,886,767 |
Liabilities: | ||
Mortgage notes payable | 4,269,808 | 4,309,484 |
Unsecured senior notes (net of discount of $11,497 and $12,296, respectively) | 5,288,503 | 5,287,704 |
Unsecured line of credit | 0 | 0 |
Mezzanine notes payable | 309,148 | 309,796 |
Outside members' notes payable | 180,000 | 180,000 |
Accounts payable and accrued expenses | 231,900 | 243,263 |
Dividends and distributions payable | 112,892 | 882,472 |
Accrued interest payable | 178,548 | 163,532 |
Other liabilities | 448,480 | 502,255 |
Total liabilities | 11,019,279 | 11,878,506 |
Commitments and contingencies | 0 | 0 |
Noncontrolling interest: | ||
Redeemable preferred units of the Operating Partnership | 0 | 633 |
Redeemable interest in property partnership | 106,233 | 104,692 |
Equity: | ||
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding | 0 | 0 |
Preferred stock, $.01 par value, 50,000,000 shares authorized | ||
5.25% Series B cumulative redeemable preferred stock, $.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at June 30, 2015 and December 31, 2014 | 200,000 | 200,000 |
Common stock, $.01 par value, 250,000,000 shares authorized, 153,552,831 and 153,192,845 issued and 153,473,931 and 153,113,945 outstanding at June 30, 2015 and December 31, 2014, respectively | 1,535 | 1,531 |
Additional paid-in capital | 6,293,556 | 6,270,257 |
Dividends in excess of earnings | (711,239) | (762,464) |
Treasury common stock at cost, 78,900 shares at June 30, 2015 and December 31, 2014 | (2,722) | (2,722) |
Accumulated other comprehensive income (loss) | 1,848 | (9,304) |
Total stockholders’ equity attributable to Boston Properties, Inc. | 5,782,978 | 5,697,298 |
Noncontrolling interests: | ||
Common units of the Operating Partnership | 614,988 | 603,171 |
Property partnerships | 1,590,481 | 1,602,467 |
Total equity | 7,988,447 | 7,902,936 |
Total liabilities and equity | $ 19,113,959 | $ 19,886,767 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Tenant and other receivables, allowance for doubtful accounts | $ 1,061 | $ 1,142 |
Accrued rental income, allowance | 1,219 | 1,499 |
Unsecured senior notes, discount | $ 11,497 | $ 12,296 |
Excess stock, par value | $ 0.01 | $ 0.01 |
Excess stock, shares authorized | 150,000,000 | 150,000,000 |
Excess stock, shares issued | 0 | 0 |
Excess stock, shares outstanding | 0 | 0 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 153,552,831 | 153,192,845 |
Common stock, shares outstanding | 153,473,931 | 153,113,945 |
Treasury common stock at cost, shares | 78,900 | 78,900 |
Series B Cumulative Redeemable Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 92,000 | 92,000 |
Series B Dividend Rate Percentage | 5.25% | 5.25% |
Series B, Liquidation Preference Per Share (dollars per share) | $ 2,500 | $ 2,500 |
Series B, shares issued | 80,000 | 80,000 |
Series B, Shares Outstanding (in shares) | 80,000 | 80,000 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenue | ||||
Base rent | $ 486,609 | $ 463,239 | $ 977,291 | $ 918,257 |
Recoveries from tenants | 86,795 | 81,382 | 175,388 | 163,316 |
Parking and other | 26,552 | 26,300 | 51,340 | 50,633 |
Total rental revenue | 599,956 | 570,921 | 1,204,019 | 1,132,206 |
Hotel revenue | 13,403 | 12,367 | 22,488 | 20,560 |
Development and management services | 4,862 | 6,506 | 10,190 | 11,722 |
Total revenue | 618,221 | 589,794 | 1,236,697 | 1,164,488 |
Expenses | ||||
Rental | 214,464 | 202,646 | 435,814 | 409,034 |
Hotel | 8,495 | 7,315 | 16,071 | 14,112 |
General and administrative | 22,284 | 23,271 | 51,075 | 53,176 |
Transaction costs | 208 | 661 | 535 | 1,098 |
Depreciation and amortization | 167,844 | 154,628 | 322,067 | 308,898 |
Total expenses | 413,295 | 388,521 | 825,562 | 786,318 |
Operating income | 204,926 | 201,273 | 411,135 | 378,170 |
Other income (expense) | ||||
Income from unconsolidated joint ventures | 3,078 | 2,834 | 17,912 | 5,650 |
Interest and other income | 1,293 | 2,109 | 2,700 | 3,420 |
Gains (losses) from investments in securities | (24) | 662 | 369 | 948 |
Interest expense | (108,534) | (110,977) | (217,291) | (224,531) |
Income before gains on sales of real estate | 100,739 | 95,901 | 214,825 | 163,657 |
Gains on sales of real estate | 0 | 0 | 95,084 | 0 |
Net income | 100,739 | 95,901 | 309,909 | 163,657 |
Net income attributable to noncontrolling interests | ||||
Noncontrolling interests in property partnerships | (9,264) | (7,553) | (24,472) | (11,907) |
Noncontrolling interest—redeemable preferred units of the Operating Partnership | (3) | (320) | (6) | (939) |
Noncontrolling interest—common units of the Operating Partnership | (9,394) | (8,883) | (29,530) | (15,010) |
Net income attributable to Boston Properties, Inc. | 82,078 | 79,145 | 255,901 | 135,801 |
Preferred dividends | (2,618) | (2,618) | (5,207) | (5,207) |
Net income attributable to Boston Properties, Inc. common shareholders | $ 79,460 | $ 76,527 | $ 250,694 | $ 130,594 |
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: | ||||
Net income (in dollars per share) | $ 0.52 | $ 0.50 | $ 1.63 | $ 0.85 |
Weighted average number of common shares outstanding | 153,450 | 153,078 | 153,341 | 153,054 |
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: | ||||
Diluted Earnings: Net income, Per Share Amount (in dollars per share) | $ 0.52 | $ 0.50 | $ 1.63 | $ 0.85 |
Weighted average number of common and common equivalent shares outstanding (in shares) | 153,815 | 153,238 | 153,845 | 153,203 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Net income | $ 100,739 | $ 95,901 | $ 309,909 | $ 163,657 | |||
Other comprehensive income: | |||||||
Effective portion of interest rate contracts | 15,639 | 0 | 12,106 | 0 | |||
Amortization of interest rate contracts | [1] | 628 | 624 | 1,255 | [2] | 1,253 | [2] |
Other comprehensive income | 16,267 | 624 | 13,361 | 1,253 | |||
Comprehensive income | 117,006 | 96,525 | 323,270 | 164,910 | |||
Net income attributable to noncontrolling interests | (18,661) | (16,756) | (54,008) | (27,856) | |||
Other comprehensive income attributable to noncontrolling interests | (2,512) | (64) | (2,209) | (126) | |||
Comprehensive income attributable to Boston Properties, Inc. | $ 95,833 | $ 79,705 | $ 267,053 | $ 136,928 | |||
[1] | Amounts reclassified from comprehensive income primarily to interest expense within the Company's Consolidated Statements of Operations. | ||||||
[2] | (1) Consists of amounts from previous interest rate hedging programs. |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Dividends In Excess Of Earnings [Member] | Treasury Stock, At Cost [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interests [Member] |
Equity, value at Dec. 31, 2013 | $ 7,043,618 | $ 1,530 | $ 200,000 | $ 5,662,453 | $ (108,552) | $ (2,722) | $ (11,556) | $ 1,302,465 |
Equity, shares at Dec. 31, 2013 | 152,983,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of operating partnership units to Common Stock, shares | 66,000 | |||||||
Conversion of operating partnership units to Common Stock, value | 0 | $ 1 | 2,240 | (2,241) | ||||
Conversions of redeemable preferred units to common units | 33,306 | 33,306 | ||||||
Allocated net income for the year | 156,249 | 135,801 | 20,448 | |||||
Dividends/distributions declared | (226,851) | (204,178) | ||||||
Dividends/distributions declared | (22,673) | |||||||
Shares issued pursuant to stock purchase plan, shares | 4,000 | |||||||
Shares issued pursuant to stock purchase plan, value | 357 | 357 | ||||||
Net activity from stock option and incentive plan, shares | 40,000 | |||||||
Net activity from stock option and incentive plan, value | 16,442 | $ 0 | 3,543 | 12,899 | ||||
Contributions from noncontrolling interests in property partnerships | 1,675 | 1,675 | ||||||
Distributions to noncontrolling interests in property partnerships | (12,149) | (12,149) | ||||||
Amortization of interest rate contracts | 1,253 | 1,127 | 126 | |||||
Reallocation of noncontrolling interest | 0 | 10,985 | (10,985) | |||||
Equity, value at Jun. 30, 2014 | 7,013,900 | $ 1,531 | 200,000 | 5,679,578 | (176,929) | (2,722) | (10,429) | 1,322,871 |
Equity, shares at Jun. 30, 2014 | 153,093,000 | |||||||
Equity, value at Dec. 31, 2014 | $ 7,902,936 | $ 1,531 | 200,000 | 6,270,257 | (762,464) | (2,722) | (9,304) | 2,205,638 |
Equity, shares at Dec. 31, 2014 | 153,113,945 | 153,114,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Conversion of operating partnership units to Common Stock, shares | 322,000 | |||||||
Conversion of operating partnership units to Common Stock, value | $ 4 | 10,839 | (10,843) | |||||
Conversions of redeemable preferred units to common units | $ 0 | |||||||
Allocated net income for the year | 305,462 | 255,901 | 49,561 | |||||
Dividends/distributions declared | (228,254) | (204,676) | ||||||
Dividends/distributions declared | (23,578) | |||||||
Shares issued pursuant to stock purchase plan, shares | 2,000 | |||||||
Shares issued pursuant to stock purchase plan, value | 313 | 313 | ||||||
Net activity from stock option and incentive plan, shares | 36,000 | |||||||
Net activity from stock option and incentive plan, value | 27,562 | 3,407 | 24,155 | |||||
Contributions from noncontrolling interests in property partnerships | 1,089 | 1,089 | ||||||
Distributions to noncontrolling interests in property partnerships | (34,022) | (34,022) | ||||||
Effective portion of interest rate contracts | 12,106 | 10,027 | 2,079 | |||||
Amortization of interest rate contracts | 1,255 | 1,125 | 130 | |||||
Reallocation of noncontrolling interest | 8,740 | (8,740) | ||||||
Equity, value at Jun. 30, 2015 | $ 7,988,447 | $ 1,535 | $ 200,000 | $ 6,293,556 | $ (711,239) | $ (2,722) | $ 1,848 | $ 2,205,469 |
Equity, shares at Jun. 30, 2015 | 153,473,931 | 153,474,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 309,909 | $ 163,657 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 322,067 | 308,898 |
Non-cash compensation expense | 16,480 | 16,899 |
Income from unconsolidated joint ventures | (17,912) | (5,650) |
Distributions of net cash flow from operations of unconsolidated joint ventures | 5,769 | 2,205 |
Gains from investments in securities | (369) | (948) |
Non-cash portion of interest expense | (21,852) | (18,171) |
Settlement of accreted debt discount on repurchases of unsecured exchangeable senior notes | 0 | (92,979) |
Gains on sales of real estate | (95,084) | 0 |
Change in assets and liabilities: | ||
Cash held in escrows | (175) | (2,047) |
Tenant and other receivables, net | (8,588) | 8,116 |
Accrued rental income, net | (40,173) | (21,984) |
Prepaid expenses and other assets | 63,545 | 51,442 |
Accounts payable and accrued expenses | (5,973) | (4,704) |
Accrued interest payable | 15,016 | (11,499) |
Other liabilities | (56,580) | (39,253) |
Tenant leasing costs | (43,004) | (44,989) |
Total adjustments | 133,167 | 145,336 |
Net cash provided by operating activities | 443,076 | 308,993 |
Cash flows from investing activities: | ||
Construction in progress | (154,430) | (206,603) |
Building and other capital improvements | (48,133) | (37,285) |
Tenant improvements | (51,444) | (53,935) |
Proceeds from sales of real estate | 194,821 | 0 |
Proceeds from sales of real estate placed in escrow | (200,612) | 0 |
Proceeds from sales of real estate released from escrow | 441,903 | 0 |
Cash placed in escrow for land sale contracts | (7,111) | 0 |
Cash released from scrow for land sale contracts | 758 | 0 |
Deposit on real estate | (5,000) | 0 |
Capital contributions to unconsolidated joint ventures | (14,989) | (47,767) |
Capital distributions from unconsolidated joint ventures | 24,527 | 357 |
Investments in securities, net | (1,125) | (1,338) |
Net cash provided by (used in) investing activities | 179,165 | (346,571) |
Cash flows from financing activities: | ||
Repayments of mortgage notes payable | (12,909) | (12,207) |
Repayment of unsecured exchangeable senior notes | 0 | (654,521) |
Proceeds from real estate financing transaction | 6,000 | 0 |
Payments on real estate financing transaction | (1,523) | 0 |
Deferred financing costs | (163) | (31) |
Net proceeds from equity transactions | 332 | 1,162 |
Redemption of preferred units | (633) | 0 |
Dividends and distributions | (997,840) | (612,612) |
Contributions from noncontrolling interests in property partnerships | 1,089 | 1,675 |
Distributions to noncontrolling interests in property partnerships | (36,922) | (14,449) |
Net cash used in financing activities | (1,042,569) | (1,290,983) |
Net decrease in cash and cash equivalents | (420,328) | (1,328,561) |
Cash and cash equivalents, beginning of period | 1,763,079 | 2,365,137 |
Cash and cash equivalents, end of period | 1,342,751 | 1,036,576 |
Supplemental disclosures: | ||
Cash paid for interest | 240,942 | 379,766 |
Interest capitalized | 16,815 | 32,586 |
Non-cash investing and financing activities: | ||
Additions to real estate included in accounts payable and accrued expenses | 17,604 | 4,831 |
Dividends and distributions declared but not paid | 112,892 | 112,420 |
Conversions of noncontrolling interests to stockholders’ equity | 10,843 | 2,241 |
Conversions of redeemable preferred units to common units | 0 | 33,306 |
Issuance of restricted securities to employees | $ 43,363 | $ 27,445 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Boston Properties, Inc. (the “Company”), a Delaware corporation, is a self-administered and self-managed real estate investment trust (“REIT”). The Company is the sole general partner of Boston Properties Limited Partnership (the “Operating Partnership”) and at June 30, 2015 and December 31, 2014 owned an approximate 89.5% general and limited partnership interest in the Operating Partnership. Partnership interests in the Operating Partnership are denominated as “common units of partnership interest” (also referred to as “OP Units”), “long term incentive units of partnership interest” (also referred to as “LTIP Units”) or “preferred units of partnership interest” (also referred to as “Preferred Units”). In addition, in February 2012, the Company issued LTIP Units in connection with the granting to employees of outperformance awards (also referred to as “2012 OPP Units”). On February 6, 2015, the measurement period for the Company’s 2012 OPP Unit awards expired and the Company’s total return to shareholders (“TRS”) was sufficient for employees to earn and therefore become eligible to vest in a portion of the 2012 OPP Unit awards (See Notes 7 and 10 ). In February 2013, February 2014 and February 2015, the Company issued LTIP Units in connection with the granting to employees of multi-year, long-term incentive program ("MYLTIP") awards (also referred to as “2013 MYLTIP Units,” “2014 MYLTIP Units” and “2015 MYLTIP Units,” respectively, and collectively as "MYLTIP Units"). Because the rights, preferences and privileges of MYLTIP Units differ from other LTIP Units granted to employees as part of the annual compensation process, unless specifically noted otherwise, all references to LTIP Units exclude MYLTIP Units (See Notes 7 and 10 ). Unless specifically noted otherwise, all references to OP Units exclude units held by the Company. A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the time of issuance of OP Units to particular holders that may restrict such redemption right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership is obligated to redeem such OP Unit for cash equal to the value of a share of common stock of the Company (“Common Stock”) at such time. In lieu of a cash redemption, the Company may elect to acquire such OP Unit for one share of Common Stock. Because the number of shares of Common Stock outstanding at all times equals the number of OP Units that the Company owns, one share of Common Stock is generally the economic equivalent of one OP Unit, and the quarterly distribution that may be paid to the holder of an OP Unit equals the quarterly dividend that may be paid to the holder of a share of Common Stock. An LTIP Unit is generally the economic equivalent of a share of restricted common stock of the Company. LTIP Units, whether vested or not, will receive the same quarterly per unit distributions as OP Units, which equal per share dividends on Common Stock (See Note 8 ). At June 30, 2015 , there was one series of Preferred Units outstanding (i.e., Series B Preferred Units). The Series B Preferred Units were issued to the Company on March 27, 2013 in connection with the Company's issuance of 80,000 shares ( 8,000,000 depositary shares each representing 1/100th of a share) of 5.25% Series B Cumulative Redeemable Preferred Stock (the "Series B Preferred Stock"). The Company contributed the net proceeds from the offering to the Operating Partnership in exchange for 80,000 Series B Preferred Units having terms and preferences generally mirroring those of the Series B Preferred Stock (See Note 8 ). All references herein to the Company refer to Boston Properties, Inc. and its consolidated subsidiaries, including the Operating Partnership, collectively, unless the context otherwise requires. Properties At June 30, 2015 , the Company owned or had interests in a portfolio of 170 commercial real estate properties (the “Properties”) aggregating approximately 46.3 million net rentable square feet, including thirteen properties under construction/redevelopment totaling approximately 4.2 million net rentable square feet. In addition, the Company has structured parking for approximately 43,341 vehicles containing approximately 14.7 million square feet. At June 30, 2015 , the Properties consisted of: • 162 office properties, including 131 Class A office properties (including twelve properties under construction/redevelopment) and 31 Office/Technical properties; • one hotel; • five retail properties (including one property under construction); and • two residential properties. The Company owns or controls undeveloped land parcels totaling approximately 484.4 acres. The Company considers Class A office properties to be centrally located buildings that are professionally managed and maintained, attract high-quality tenants and command upper-tier rental rates, and that are modern structures or have been modernized to compete with newer buildings. The Company considers Office/Technical properties to be properties that support office, research and development, laboratory and other technical uses. The Company’s definitions of Class A Office and Office/Technical properties may be different than those used by other companies. |
Basis Of Presentation And Summa
Basis Of Presentation And Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Presentation And Summary Of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Boston Properties, Inc. does not have any other significant assets, liabilities or operations, other than its investment in the Operating Partnership, nor does it have employees of its own. The Operating Partnership, not Boston Properties, Inc., generally executes all significant business relationships other than transactions involving securities of Boston Properties, Inc. All majority-owned subsidiaries and joint ventures over which the Company has financial and operating control and variable interest entities ( " VIEs") in which the Company has determined it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. Accordingly, the Company’s share of the earnings of these joint ventures and companies is included in consolidated net income. The accompanying interim financial statements are unaudited; however, the financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting solely of normal recurring matters) necessary for a fair statement of the financial statements for these interim periods have been included. The results of operations for the interim periods are not necessarily indicative of the results to be obtained for other interim periods or for the full fiscal year. The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosure required by accounting principles generally accepted in the United States of America. These financial statements should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report in the Company’s Form 10-K for its fiscal year ended December 31, 2014 . Fair Value of Financial Instruments The Company follows the authoritative guidance for fair value measurements when valuing its financial instruments for disclosure purposes. The Company determines the fair value of its unsecured senior notes using market prices. The inputs used in determining the fair value of the Company’s unsecured senior notes are categorized at a level 1 basis (as defined in the accounting standards for Fair Value Measurements and Disclosures) due to the fact that the Company uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized at a level 2 basis (as defined in the accounting standards for Fair Value Measurements and Disclosures) if trading volumes are low. The Company determines the fair value of its mortgage notes payable using discounted cash flow analyses by discounting the spread between the future contractual interest payments and hypothetical future interest payments on mortgage debt based on current market rates for similar securities. In determining the current market rates, the Company adds its estimates of market spreads to the quoted yields on federal government treasury securities with similar maturity dates to its debt. The inputs used in determining the fair value of the Company’s mortgage notes payable and mezzanine notes payable are categorized at a level 3 basis (as defined in the accounting standards for Fair Value Measurements and Disclosures) due to the fact that the Company considers the rates used in the valuation techniques to be unobservable inputs. Because the Company’s valuations of its financial instruments are based on these types of estimates, the actual fair values of its financial instruments may differ materially if the Company’s estimates do not prove to be accurate. The following table presents the aggregate carrying value of the Company’s indebtedness and the Company’s corresponding estimate of fair value as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgage notes payable $ 4,269,808 $ 4,401,756 $ 4,309,484 $ 4,449,541 Mezzanine notes payable 309,148 306,130 309,796 306,156 Unsecured senior notes 5,288,503 5,602,523 5,287,704 5,645,819 Total $ 9,867,459 $ 10,310,409 $ 9,906,984 $ 10,401,516 The Company uses interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. To comply with the provisions of ASC 820, the Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of June 30, 2015 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. Out-of-Period Adjustment During the three months ended June 30, 2014, the Company recorded an additional allocation of net income to the noncontrolling interest holder in its Fountain Square consolidated joint venture totaling approximately $2.4 million related to the cumulative non-cash adjustment to the accretion of the changes in the redemption value of the noncontrolling interest. This resulted in the overstatement of Noncontrolling Interests in Property Partnerships by approximately $2.4 million during the three months ended June 30, 2014 and in the understatement of Noncontrolling Interests in Property Partnerships in the aggregate amount of approximately $2.4 million in previous periods. Because this adjustment was not material to the prior periods’ consolidated financial statements and the impact of recording the adjustment in the then-current period was not material to the Company’s consolidated financial statements, the Company recorded the related adjustment during the three months ended June 30, 2014. Recent Accounting Pronouncements On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (“ASU 2014-08”). ASU 2014-08 clarifies that discontinued operations presentation applies only to disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results (e.g., a disposal of a major geographical area, a major line of business, a major equity method investment or other major parts of an entity). ASU 2014-08 is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted, and the Company early adopted ASU 2014-08 during the first quarter of 2014. The Company’s adoption of ASU 2014-08 resulted in the operating results and gain on sale of real estate from the operating property sold during the six months ended June 30, 2015 not being reflected as Discontinued Operations in the Company's Consolidated Statements of Operations (See Note 3 ). In February 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis” (“ASU 2015-02”). ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments in ASU 2015-02 using: (a) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (b) by applying the amendments retrospectively. The Company is currently assessing the potential impact that the adoption of ASU 2015-02 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs " ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and shall be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements. |
Real Estate Activity During the
Real Estate Activity During the Six Months Ended June 30, 2015 | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate [Abstract] | |
Real Estate Activity During the Six Months Ended June 30, 2014 | 3. Real Estate Activity During the Six Months Ended June 30, 2015 Dispositions On February 19, 2015, the Company completed the sale of a parcel of land within its Washingtonian North property located in Gaithersburg, Maryland for a gross sale price of $8.7 million . Net cash proceeds totaled approximately $8.3 million , resulting in a gain on sale of real estate totaling approximately $3.7 million . The parcel contains approximately 8.5 acres of the Company's approximately 27 acre property. On March 17, 2015, the Company completed the sale of its Residences on The Avenue property located in Washington, DC for a gross sale price of $196.0 million . Net cash proceeds totaled approximately $192.5 million , resulting in a gain on sale of real estate totaling approximately $91.4 million . The Company has agreed to provide net operating income support of up to $6.0 million should the property’s net operating income fail to achieve certain thresholds. This amount has been recorded as a reduction to the gain on sale. The Residences on The Avenue is comprised of 335 apartment units and approximately 50,000 net rentable square feet of retail space, subject to a ground lease that expires on February 1, 2068. The Residences on The Avenue contributed approximately $1.1 million of net income to the Company for the period from January 1, 2015 through March 16, 2015 and $0.9 million and $1.7 million for the three and six months ended June 30, 2014 , respectively. Redevelopment On May 1, 2015, the Company commenced the redevelopment of Reservoir Place North, a Class A office project with approximately 73,000 net rentable square feet located in Waltham, Massachusetts. |
Investments in Unconsolidated J
Investments in Unconsolidated Joint Ventures | 6 Months Ended |
Jun. 30, 2015 | |
Investments In Unconsolidated Joint Ventures [Abstract] | |
Investments In Unconsolidated Joint Ventures | 4. Investments in Unconsolidated Joint Ventures The investments in unconsolidated joint ventures consist of the following at June 30, 2015 : Nominal % Ownership Carrying Value of Investment (1) Entity Properties June 30, 2015 December 31, 2014 (in thousands) Square 407 Limited Partnership Market Square North 50.0 % $ (10,161 ) $ (8,022 ) The Metropolitan Square Associates LLC Metropolitan Square 51.0 % 9,188 8,539 BP/CRF 901 New York Avenue LLC 901 New York Avenue 25.0 % (2) (12,411 ) (1,080 ) WP Project Developer LLC Wisconsin Place Land and Infrastructure 33.3 % (3) 44,597 45,514 Annapolis Junction NFM, LLC Annapolis Junction 50.0 % (4) 26,812 25,246 540 Madison Venture LLC 540 Madison Avenue 60.0 % 68,627 68,128 500 North Capitol LLC 500 North Capitol Street, NW 30.0 % (2,755 ) (2,250 ) 501 K Street LLC 1001 6th Street 50.0 % (5) 42,704 41,736 Podium Developer LLC North Station (Phase I - Air Rights) 50.0 % 6,609 4,231 1265 Main Office JV LLC 1265 Main Street 50.0 % 2,209 N/A BNY Tower Holdings LLC Dock72 at the Brooklyn Navy Yard 50.0 % 9,228 N/A $ 184,647 $ 182,042 _______________ (1) Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014 , respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. (2) The Company’s economic ownership has increased based on the achievement of certain return thresholds. (3) The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project. (4) The joint venture owns two in-service buildings, two buildings under construction and two undeveloped land parcels. (5) Under the joint venture agreement, the partner will be entitled to up to two additional payments from the venture based on increases in total square footage of the project above 520,000 square feet and achieving certain project returns at stabilization. Certain of the Company’s unconsolidated joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures at an agreed upon fair value. Under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. The combined summarized balance sheets of the Company's unconsolidated joint ventures are as follows: June 30, December 31, (in thousands) ASSETS Real estate and development in process, net $ 1,038,567 $ 1,034,552 Other assets 243,773 264,097 Total assets $ 1,282,340 $ 1,298,649 LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY Mortgage and notes payable $ 832,860 $ 830,075 Other liabilities 35,483 34,211 Members’/Partners’ equity 413,997 434,363 Total liabilities and members’/partners’ equity $ 1,282,340 $ 1,298,649 Company’s share of equity $ 212,065 $ 209,828 Basis differentials (1) (27,418 ) (27,786 ) Carrying value of the Company’s investments in unconsolidated joint ventures (2) $ 184,647 $ 182,042 _______________ (1) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from impairment of investments and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. (2) Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014 , respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. The combined summarized statements of operations of the Company's unconsolidated joint ventures are as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 (in thousands) Total revenue (1) $ 39,152 $ 38,437 $ 78,684 $ 76,471 Expenses Operating 15,824 15,461 32,099 30,925 Depreciation and amortization 8,951 9,167 18,022 18,259 Total expenses 24,775 24,628 50,121 49,184 Operating income 14,377 13,809 28,563 27,287 Other expense Interest expense 7,986 7,984 15,966 15,996 Net income $ 6,391 $ 5,825 $ 12,597 $ 11,291 Company’s share of net income $ 2,902 $ 2,578 $ 17,544 (2) $ 5,203 Basis differential 176 256 368 447 Income from unconsolidated joint ventures $ 3,078 $ 2,834 $ 17,912 $ 5,650 _______________ (1) Includes straight-line rent adjustments of approximately $0.3 million and $0.3 million for the three months ended June 30, 2015 and 2014 , respectively, and approximately $2.0 million and $0.9 million for the six months ended June 30, 2015 and 2014 . Includes net above-/below-market rent adjustments of approximately $(0.1) million and $(0.1) million for the three months ended June 30, 2015 and 2014 , respectively, and approximately $(0.1) million and $0.0 million for the six months ended June 30, 2015 and 2014 , respectively. (2) During the six months ended June 30, 2015 , the Company received a distribution of approximately $24.5 million , which was generated from the excess loan proceeds from the refinancing of 901 New York Avenue's mortgage loan to a new 10 -year mortgage loan totaling $225.0 million . The Company’s allocation of income and distributions for the six months ended June 30, 2015 was not proportionate to its nominal ownership interest as a result of the achievement of specified investment return thresholds, as provided for in the joint venture agreement. On May 8, 2015, the Company entered into a joint venture with an unrelated third party to redevelop an existing building into a Class A office building totaling approximately 115,000 net rentable square feet at 1265 Main Street in Waltham, Massachusetts. The joint venture partner contributed real estate and improvements, with an aggregate fair value of approximately $9.4 million , for its initial 50% interest in the joint venture. For its initial 50% interest, the Company will contribute cash totaling approximately $9.4 million as the joint venture incurs costs. The joint venture has entered into a fifteen -year lease with a tenant to occupy 100% of the building. On June 26, 2015, the Company entered into a joint venture with an unrelated third party to develop Dock72, an office building totaling approximately 670,000 net rentable square feet located at the Brooklyn Navy Yard in Brooklyn, New York. Each partner contributed cash totaling approximately $9.1 million for their initial 50% interest in the joint venture. The joint venture entered into a 96 -year ground lease, comprised of an initial term of 46 years, which may be extended by the joint venture to 2111, subject to certain conditions. The joint venture also entered into a 20 -year lease with a tenant to occupy approximately 222,000 net rentable square feet at the building. In addition, the joint venture entered into an option agreement pursuant to which it may lease an additional land parcel at the site, which could support between 600,000 and 1,000,000 net rentable square feet of development. In connection with the execution of the option agreement, the joint venture paid a non-refundable option payment of $1.0 million . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities [Text Block] | 5. Derivative Instruments and Hedging Activities On February 19, 2015, the Company commenced a planned interest rate hedging program. The Company entered into eight forward-starting interest rate swap contracts during the six months ended June 30, 2015 , which fix the 10 -year swap rate at a weighted-average rate of approximately 2.458% per annum on notional amounts aggregating $325.0 million . These interest rate swap contracts were entered into in advance of a financing with a target commencement date in September 2016 and maturity in September 2026 (See Note 12). In addition, 767 Fifth Partners LLC, which is the consolidated entity (in which the Company has a 60% interest and owns 767 Fifth Avenue (the General Motors Building) in New York City), entered into five forward-starting interest rate swap contracts during the six months ended June 30, 2015 , which fix the 10 -year swap rate at a weighted-average rate of approximately 2.793% per annum on notional amounts aggregating $150.0 million . These interest rate swap contracts were entered into in advance of a financing with a target commencement date in June 2017 and maturity in June 2027 (See Note 12). The Company's interest rate swap contracts consisted of the following at June 30, 2015 : Derivative Instrument Notional Amount Effective Date Maturity Date Strike Rate Balance Sheet Location Fair Value (in thousands) (in thousands) Boston Properties Limited Partnership: Interest Rate Swap $ 50,000 September 1, 2016 September 1, 2026 2.571 % Prepaid Expenses and Other Assets $ 1,003 Interest Rate Swap 75,000 September 1, 2016 September 1, 2026 2.476 % Prepaid Expenses and Other Assets 2,172 Interest Rate Swap 50,000 September 1, 2016 September 1, 2026 2.523 % Prepaid Expenses and Other Assets 1,215 Interest Rate Swap 50,000 September 1, 2016 September 1, 2026 2.480 % Prepaid Expenses and Other Assets 1,402 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.348 % Prepaid Expenses and Other Assets 1,008 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.249 % Prepaid Expenses and Other Assets 1,208 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.242 % Prepaid Expenses and Other Assets 1,242 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.541 % Prepaid Expenses and Other Assets 567 $ 325,000 2.458 % $ 9,817 767 Fifth Partners LLC: Interest Rate Swap $ 25,000 June 7, 2017 June 7, 2027 2.683 % Prepaid Expenses and Other Assets $ 618 Interest Rate Swap 50,000 June 7, 2017 June 7, 2027 2.677 % Prepaid Expenses and Other Assets 1,261 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.913 % Prepaid Expenses and Other Assets 123 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.857 % Prepaid Expenses and Other Assets 244 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.950 % Prepaid Expenses and Other Assets 43 $ 150,000 2.793 % $ 2,289 $ 475,000 $ 12,106 The Company entered into the interest rate swap contracts designated and qualifying as cash flow hedges to reduce its exposure to the variability in future cash flows attributable to changes in the 10 -year swap rate in contemplation of obtaining 10 -year fixed-rate financing in September 2016. The Company’s 767 Fifth Partners LLC consolidated entity entered into the interest rate swap contracts designated and qualifying as cash flow hedges to reduce its exposure to the variability in future cash flows attributable to changes in the 10 -year swap rate in contemplation of obtaining 10 -year fixed-rate financing in June 2017. The Company has formally documented all of its relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. The Company also assesses and documents, both at the hedging instrument’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows associated with the hedged items. All components of the forward-starting interest rate swap contracts were included in the assessment of hedge effectiveness. The Company has agreements with each of its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the Company's indebtedness is accelerated by the lender due to the Company's default on the indebtedness. As of June 30, 2015 , the fair value of derivatives in a net asset position, which excludes any adjustment for nonperformance risk and excludes accrued interest, related to these agreements was approximately $12.1 million . As of June 30, 2015 , the Company has not posted any collateral related to these agreements. If the Company had breached any of these provisions at June 30, 2015 , it could have been required to settle its obligations under the agreements at their termination value and would have received approximately $12.1 million . The Company accounts for the effective portion of changes in the fair value of a derivative in accumulated other comprehensive income (loss) and subsequently reclassifies the effective portion to earnings over the term that the hedged transaction affects earnings. The Company accounts for the ineffective portion of changes in the fair value of a derivative directly in earnings. During the six months ended June 30, 2015 , the Company has recorded the changes in fair value of the swap contracts related to the effective portion of the interest rate contracts aggregating approximately $12.1 million in Prepaid Expenses and Other Assets and Accumulated Other Comprehensive Income (Loss) within the Company’s Consolidated Balance Sheets. During the six months ended June 30, 2015 , the Company did not record any hedge ineffectiveness. The Company does not expect to reclassify into earnings any amounts recorded within Accumulated Other Comprehensive Income (Loss) relating to the forward-starting interest rate swap contracts within the next twelve months. The following table presents the location in the financial statements of the gains or losses recognized related to the Company's cash flow hedges for the three and six months ended June 30, 2015 and 2014 : Three months ended Six months ended 2015 2014 2015 2014 (in thousands) (in thousands) Amount of gain related to the effective portion recognized in other comprehensive income (loss) $ 15,639 $ — $ 12,106 $ — Amount of loss related to the effective portion subsequently reclassified to earnings (1) $ (628 ) $ (624 ) $ (1,255 ) $ (1,253 ) Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing $ — $ — $ — $ — ___________ (1) Consists of amounts from previous interest rate hedging programs. The following table reflects the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ (9,304 ) Effective portion of interest rate contracts 12,106 Amortization of interest rate contracts (1) 1,255 Other comprehensive income attributable to noncontrolling interests (2,209 ) Balance at June 30, 2015 $ 1,848 Balance at December 31, 2013 $ (11,556 ) Amortization of interest rate contracts (1) 1,253 Other comprehensive income attributable to noncontrolling interests (126 ) Balance at June 30, 2014 $ (10,429 ) ___________ (1) Consists of amounts from previous interest rate hedging programs. |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 6. Commitments and Contingencies General In the normal course of business, the Company guarantees its performance of services or indemnifies third parties against its negligence. In addition, in the normal course of business, the Company guarantees to certain tenants the obligations of its subsidiaries for the payment of tenant improvement allowances and brokerage commissions in connection with their leases and limited costs arising from delays in delivery of their premises. The Company has letter of credit and performance obligations related to lender and development requirements that total approximately $23.5 million . Certain of the Company’s joint venture agreements include provisions whereby, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures. With limited exception, under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners (See also Note 7 ). Under certain of the Company's joint venture agreements, if certain return thresholds are achieved the partners will be entitled to an additional promoted interest or payments. In connection with the assumption of 767 Fifth Avenue's (the General Motors Building) secured loan by the Company’s consolidated entity, 767 Venture, LLC, the Company guaranteed the consolidated joint venture’s obligation to fund various escrows, including tenant improvements, taxes and insurance in lieu of cash deposits. As of June 30, 2015 , the maximum funding obligation under the guarantee was approximately $29.5 million . The Company earns a fee from the joint venture for providing the guarantee and has an agreement with the outside partners to reimburse the joint venture for their share of any payments made under the guarantee. In connection with 767 Fifth Partners LLC entering into interest rate swap contracts (See Note 5), the Company guaranteed 767 Fifth Partners LLC's obligations under the hedging agreements in favor of each hedge counterparty. 767 Fifth Partners LLC is the entity that owns 767 Fifth Avenue (the General Motors Building). It is a subsidiary of 767 Venture, LLC, a consolidated entity in which the Company has a 60% interest. The Company earns a fee from the joint venture for providing the guarantee and has an agreement with the outside partners to reimburse the joint venture for their share of any payments made under the guarantee. In connection with the mortgage financing collateralized by the Company's 200 Clarendon Street (formerly the John Hancock Tower) property located in Boston, Massachusetts, the Company has agreed to guarantee approximately $25.3 million related to its obligations to provide funds for certain tenant re-leasing costs. The mortgage financing will mature on January 6, 2017 . In connection with the mortgage financing collateralized by the Company's consolidated joint venture's Fountain Square property located in Reston, Virginia, the Company has agreed to guarantee approximately $0.7 million related to its obligation to provide funds for certain tenant re-leasing costs. The mortgage financing will mature on October 11, 2016. From time to time, the Company (or the applicable joint venture) has also agreed to guarantee portions of the principal, interest or other amounts in connection with other unconsolidated joint venture borrowings. In addition to the financial guarantees referenced above, the Company has agreed to customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) on certain of its unconsolidated joint venture loans. In 2009, the Company filed a general unsecured creditor’s claim against Lehman Brothers, Inc. for approximately $45.3 million related to its rejection of a lease at 399 Park Avenue in New York City. On January 10, 2014, the trustee for the liquidation of the business of Lehman Brothers allowed the Company’s claim in the amount of approximately $45.2 million . During 2014, the Company received an initial distribution totaling approximately $7.7 million . On March 11, 2015, the Company received a second interim distribution totaling approximately $4.5 million , which is included in Base Rent in the accompanying Consolidated Statements of Operations for the six months ended June 30, 2015 , leaving a remaining claim of approximately $33.0 million . The Company will continue to evaluate whether to attempt to sell the remaining claim or wait until the trustee distributes proceeds from the Lehman Brothers estate. Given the inherent uncertainties in bankruptcy proceedings, there can be no assurance as to the timing or amount of proceeds, if any, that the Company may ultimately realize on the remaining claim, whether by sale to a third party or by one or more distributions from the trustee. Accordingly, the Company has not recorded any estimated recoveries associated with this gain contingency within its consolidated financial statements at June 30, 2015 . Insurance The Company carries insurance coverage on its properties of types and in amounts and with deductibles that it believes are in line with coverage customarily obtained by owners of similar properties. In response to the uncertainty in the insurance market following the terrorist attacks of September 11, 2001, the Federal Terrorism Risk Insurance Act (as amended, “TRIA”) was enacted in November 2002 to require regulated insurers to make available coverage for “certified” acts of terrorism (as defined by the statute). The expiration date of TRIA was extended to December 31, 2014 by the Terrorism Risk Insurance Program Reauthorization Act of 2007 and further extended to December 31, 2020 by the Terrorism Risk Insurance Program Reauthorization Act of 2015 (“TRIPRA”), and the Company can provide no assurance that it will be extended further. Currently, the Company’s property insurance program per occurrence limits are $1.0 billion for its portfolio insurance program, including coverage for acts of terrorism other than nuclear, biological, chemical or radiological terrorism (“Terrorism Coverage”). The Company also carries $250 million of Terrorism Coverage for 601 Lexington Avenue, New York, New York (“601 Lexington Avenue”) in excess of the $1.0 billion of coverage in the Company’s property insurance program. Certain properties, including the General Motors Building located at 767 Fifth Avenue in New York, New York (“767 Fifth Avenue”), are currently insured in separate insurance programs. The property insurance program per occurrence limits for 767 Fifth Avenue are $1.625 billion , including Terrorism Coverage. The Company also currently carries nuclear, biological, chemical and radiological terrorism insurance coverage for acts of terrorism certified under TRIA (“NBCR Coverage”), which is provided by IXP as a direct insurer, for the properties in our portfolio, including 767 Fifth Avenue, but excluding certain other properties owned in joint ventures with third parties or which the Company manages. The per occurrence limit for NBCR Coverage is $1.0 billion . Under TRIA, after the payment of the required deductible and coinsurance, the NBCR Coverage provided by IXP is backstopped by the Federal Government if the aggregate industry insured losses resulting from a certified act of terrorism exceed a “program trigger.” In 2015, the program trigger is $100 million and the coinsurance is 15% , however, both will increase in subsequent years pursuant to TRIPRA. If the Federal Government pays out for a loss under TRIA, it is mandatory that the Federal Government recoup the full amount of the loss from insurers offering TRIA coverage after the payment of the loss pursuant to a formula in TRIPRA. The Company may elect to terminate the NBCR Coverage if the Federal Government seeks recoupment for losses paid under TRIA, if there is a change in its portfolio or for any other reason. The Company intends to continue to monitor the scope, nature and cost of available terrorism insurance and maintain terrorism insurance in amounts and on terms that are commercially reasonable. The Company also currently carries earthquake insurance on its properties located in areas known to be subject to earthquakes in an amount and subject to self-insurance that the Company believes is commercially reasonable. In addition, this insurance is subject to a deductible in the amount of 5% of the value of the affected property. Specifically, the Company currently carries earthquake insurance which covers its San Francisco region (excluding Salesforce Tower) with a $170 million per occurrence limit (increased on March 1, 2015 from $120 million ), and a $170 million annual aggregate limit (increased on March 1, 2015 from $120 million ), $20 million of which is provided by IXP, as a direct insurer. The builders risk policy maintained for the development of Salesforce Tower in San Francisco includes a $60 million per occurrence and annual aggregate limit of earthquake coverage. The amount of the Company’s earthquake insurance coverage may not be sufficient to cover losses from earthquakes. In addition, the amount of earthquake coverage could impact the Company’s ability to finance properties subject to earthquake risk. The Company may discontinue earthquake insurance or change the structure of its earthquake insurance program on some or all of its properties in the future if the premiums exceed the Company’s estimation of the value of the coverage. IXP, a captive insurance company which is a wholly-owned subsidiary of the Company, acts as a direct insurer with respect to a portion of the Company’s earthquake insurance coverage for its Greater San Francisco properties and the Company’s NBCR Coverage. Insofar as the Company owns IXP, it is responsible for its liquidity and capital resources, and the accounts of IXP are part of the Company’s consolidated financial statements. In particular, if a loss occurs which is covered by the Company’s NBCR Coverage but is less than the applicable program trigger under TRIA, IXP would be responsible for the full amount of the loss without any backstop by the Federal Government. IXP would also be responsible for any recoupment charges by the Federal Government in the event losses are paid out and its insurance policy is maintained after the payout by the Federal Government. If the Company experiences a loss and IXP is required to pay under its insurance policy, the Company would ultimately record the loss to the extent of the required payment. Therefore, insurance coverage provided by IXP should not be considered as the equivalent of third-party insurance, but rather as a modified form of self-insurance. In addition, the Operating Partnership has issued a guarantee to cover liabilities of IXP in the amount of $20.0 million . The mortgages on the Company's properties typically contain requirements concerning the financial ratings of the insurers who provide policies covering the property. The Company provides the lenders on a regular basis with the identity of the insurance companies in the Company's insurance programs. The ratings of some of the Company's insurers are below the rating requirements in some of the Company's loan agreements and the lenders for these loans could attempt to claim that an event of default has occurred under the loan. The Company believes it could obtain insurance with insurers which satisfy the rating requirements. Additionally, in the future, the Company's ability to obtain debt financing secured by individual properties, or the terms of such financing, may be adversely affected if lenders generally insist on ratings for insurers or amounts of insurance which are difficult to obtain or which result in a commercially unreasonable premium. There can be no assurance that a deficiency in the financial ratings of one or more of the Company's insurers will not have a material adverse effect on the Company. The Company continues to monitor the state of the insurance market in general, and the scope and costs of coverage for acts of terrorism and California earthquake risk in particular, but the Company cannot anticipate what coverage will be available on commercially reasonable terms in future policy years. There are other types of losses, such as from wars, for which the Company cannot obtain insurance at all or at a reasonable cost. With respect to such losses and losses from acts of terrorism, earthquakes or other catastrophic events, if the Company experiences a loss that is uninsured or that exceeds policy limits, the Company could lose the capital invested in the damaged properties, as well as the anticipated future revenues from those properties. Depending on the specific circumstances of each affected property, it is possible that the Company could be liable for mortgage indebtedness or other obligations related to the property. Any such loss could materially and adversely affect the Company's business and financial condition and results of operations. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling Interests Noncontrolling interests relate to the interests in the Operating Partnership not owned by the Company and interests in consolidated property partnerships not wholly-owned by the Company. As of June 30, 2015 , the noncontrolling interests in the Operating Partnership consisted of 16,192,518 OP Units, 1,839,555 LTIP Units (including 216,960 2012 OPP Units), 309,818 2013 MYLTIP Units, 476,320 2014 MYLTIP Units and 368,415 2015 MYLTIP Units held by parties other than the Company. Noncontrolling Interest—Redeemable Preferred Units of the Operating Partnership On June 25, 2015, the Company’s Operating Partnership redeemed the remaining 12,667 Series Four Preferred Units for cash totaling approximately $0.6 million , plus accrued and unpaid distributions. The Series Four Preferred Units bore a preferred distribution equal to 2.00% per annum on a liquidation preference of $50.00 per unit and were not convertible into OP Units. The holders of Series Four Preferred Units had the right, at certain times and subject to certain conditions set forth in the Certificate of Designations establishing the rights, limitations and preferences of the Series Four Preferred Units, to require the Operating Partnership to redeem all of their units for cash at the redemption price of $50.00 per unit. The Operating Partnership also had the right, at certain times and subject to certain conditions, to redeem all of the Series Four Preferred Units for cash at the redemption price of $50.00 per unit. In order to secure the performance of certain post-issuance obligations by the holders, all of such outstanding Series Four Preferred Units were subject to forfeiture pursuant to the terms of a pledge agreement and not eligible for redemption until and unless such security interest was released. On May 19, 2014, the Company's Operating Partnership released to the holders 319,687 Series Four Preferred Units that were previously subject to the security interest. On July 3, 2014 , the Company's Operating Partnership redeemed such units for cash totaling approximately $16.0 million , plus accrued and unpaid distributions. On October 16, 2014, the Company's Operating Partnership released to the holders 27,773 Series Four Preferred Units that were previously subject to the security interest under the pledge agreement. On November 5, 2014, the Company's Operating Partnership redeemed such units for cash totaling approximately $1.4 million . Due to the holders' redemption option existing outside the control of the Company, the Series Four Preferred Units were presented outside of permanent equity in the Company's Consolidated Balance Sheets. On February 17, 2015, the Operating Partnership paid a distribution on its outstanding Series Four Preferred Units of $0.25 per unit. On May 15, 2015, the Operating Partnership paid a distribution on its outstanding Series Four Preferred Units of $0.25 per unit. The following table reflects the activity of the noncontrolling interests—redeemable preferred units of the Operating Partnership for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 633 Net income 6 Distributions (6 ) Redemption of redeemable preferred units (Series Four Preferred Units) (633 ) Balance at June 30, 2015 $ — Balance at December 31, 2013 $ 51,312 Net income 939 Distributions (939 ) Conversion of redeemable preferred units (Series Two Preferred Units) to common units (33,306 ) Balance at June 30, 2014 $ 18,006 Noncontrolling Interest—Redeemable Interest in Property Partnership On October 4, 2012 , the Company completed the formation of a joint venture that owns and operates Fountain Square located in Reston, Virginia. The joint venture partner contributed the property valued at approximately $385.0 million and related mortgage indebtedness totaling approximately $211.3 million for a nominal 50% interest in the joint venture. The Company contributed cash totaling approximately $87.0 million for its nominal 50% interest, which cash was distributed to the joint venture partner. Pursuant to the joint venture agreement (i) the Company has rights to acquire the partner's nominal 50% interest and (ii) the partner has the right to cause the Company to acquire the partner's interest on January 4, 2016 , in each case at a fixed price totaling approximately $102.0 million in cash. The fixed price option rights expire on January 31, 2016 (See Note 12). The Company is consolidating this joint venture due to the Company's right to acquire the partner's nominal 50% interest. The Company recorded the noncontrolling interest at its acquisition-date fair value as temporary equity, due to the redemption option existing outside the control of the Company. The Company accretes the changes in the redemption value quarterly over the period from the acquisition date to the earliest redemption date using the effective interest method. The Company records the accretion after the allocation of net income and distributions of cash flow to the noncontrolling interest account balance. The following table reflects the activity of the noncontrolling interest—redeemable interest in property partnership in the Company's Fountain Square consolidated entity for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 104,692 Net loss (24 ) Distributions (2,900 ) Adjustment to reflect redeemable interest at redemption value 4,465 Balance at June 30, 2015 $ 106,233 Balance at December 31, 2013 $ 99,609 Net loss (240 ) Distributions (2,300 ) Adjustment to reflect redeemable interest at redemption value 6,709 (1) Balance at June 30, 2014 $ 103,778 _______________ (1) Includes an out-of-period adjustment totaling approximately $2.4 million (See Note 2). Noncontrolling Interest—Common Units of the Operating Partnership During the six months ended June 30, 2015 , 321,700 OP Units were presented by the holders for redemption (including 57,701 OP Units issued upon conversion of LTIP Units) and were redeemed by the Company in exchange for an equal number of shares of Common Stock. At June 30, 2015 , the Company had outstanding 309,818 2013 MYLTIP Units, 476,320 2014 MYLTIP Units and 368,415 2015 MYLTIP Units. Prior to the measurement date (February 4, 2016 for 2013 MYLTIP Units, February 3, 2017 for 2014 MYLTIP Units and February 4, 2018 for 2015 MYLTIP Units), holders of MYLTIP Units will be entitled to receive per unit distributions equal to one-tenth ( 10% ) of the regular quarterly distributions payable on an OP Unit, but will not be entitled to receive any special distributions. After the measurement date, the number of MYLTIP Units, both vested and unvested, that MYLTIP award recipients have earned, if any, based on the establishment of a performance pool, will be entitled to receive distributions in an amount per unit equal to distributions, both regular and special, payable on an OP Unit. On February 6, 2015, the measurement period for the Company’s 2012 OPP Unit awards ended and the Company’s TRS performance was sufficient for employees to earn and therefore become eligible to vest in a portion of the 2012 OPP Unit awards. The final outperformance pool was determined to be approximately $32.1 million , or approximately 80% of the total maximum outperformance pool of $40.0 million . As a result, 174,549 2012 OPP Units were automatically forfeited. On January 28, 2015 , the Operating Partnership paid a special cash distribution on the OP Units and LTIP Units in the amount of $4.50 per unit, a regular quarterly cash distribution on the OP Units and LTIP Units in the amount of $0.65 per unit, and a regular quarterly distribution on the 2012 OPP Units, 2013 MYLTIP Units and 2014 MYLTIP Units in the amount of $0.065 per unit, to holders of record as of the close of business on December 31, 2014 . The special cash distribution was in addition to the regular quarterly distribution on the OP Units and LTIP Units. Unless and until they are earned, holders of OPP Units and MYLTIP Units are not entitled to receive any special distributions. On April 30, 2015 , the Operating Partnership paid a distribution on the OP Units and LTIP Units in the amount of $0.65 per unit, a distribution on the 2012 OPP Units in the amount of $0.416 per unit (representing a blended rate for periods prior to and after February 6, 2015, which was the valuation date for the 2012 Outperformance Plan), and a distribution on the 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units in the amount of $0.065 per unit, to holders of record as of the close of business on March 31, 2015 . On June 17, 2015 , Boston Properties, Inc., as general partner of the Operating Partnership, declared a distribution on the OP Units and LTIP Units (including the 2012 OPP Units) in the amount of $0.65 per unit and a distribution on the 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units in the amount of $0.065 per unit, in each case payable on July 31, 2015 to holders of record as of the close of business on June 30, 2015 . A holder of an OP Unit may present such OP Unit to the Operating Partnership for redemption at any time (subject to restrictions agreed upon at the time of issuance of OP Units to particular holders that may restrict such redemption right for a period of time, generally one year from issuance). Upon presentation of an OP Unit for redemption, the Operating Partnership must redeem such OP Unit for cash equal to the then value of a share of common stock of the Company. The Company may, in its sole discretion, elect to assume and satisfy the redemption obligation by paying either cash or issuing one share of Common Stock. The value of the OP Units not owned by the Company and LTIP Units (including the 2012 OPP Units) assuming that all conditions had been met for the conversion thereof had all of such units been redeemed at June 30, 2015 was approximately $2.2 billion based on the closing price of the Company’s common stock of $121.04 per share on June 30, 2015 . The Company's calculation of Noncontrolling Interest - Common Units of the Operating Partnership in the Company's Consolidated Statements of Operations includes OP Units and vested LTIP Units (including vested 2012 OPP Units). Noncontrolling Interests—Property Partnerships The noncontrolling interests in property partnerships consist of the outside equity interests in ventures that are consolidated with the financial results of the Company because the Company exercises control over the entities that own the properties. The equity interests in these ventures that are not owned by the Company, totaling approximately $1.6 billion at June 30, 2015 and December 31, 2014 , are included in Noncontrolling Interests—Property Partnerships on the accompanying Consolidated Balance Sheets. The following table reflects the activity of the noncontrolling interests in property partnerships for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 1,602,467 Capital contributions 1,089 Net income 20,031 Accumulated other comprehensive income 916 Distributions (34,022 ) Balance at June 30, 2015 $ 1,590,481 Balance at December 31, 2013 $ 726,132 Capital contributions 1,675 Net income 5,438 Distributions (12,149 ) Balance at June 30, 2014 $ 721,096 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity As of June 30, 2015 , the Company had 153,473,931 shares of Common Stock outstanding. On June 3, 2014, the Company established an “at the market” ("ATM") stock offering program through which it may sell from time to time up to an aggregate of $600.0 million of its common stock through sales agents over a three -year period. The Company intends to use the net proceeds from any offering for general business purposes, which may include investment opportunities and debt reduction. No shares of common stock have been issued under this ATM stock offering program since its inception. During the six months ended June 30, 2015 , the Company issued 321,700 shares of Common Stock in connection with the redemption of an equal number of redeemable OP Units from third parties. During the six months ended June 30, 2015 , the Company issued 11,447 shares of Common Stock upon the exercise of options to purchase Common Stock by certain employees. On January 28, 2015 , the Company paid a special cash dividend and regular quarterly dividend aggregating $5.15 per share of Common Stock to shareholders of record as of the close of business on December 31, 2014 . On April 30, 2015 , the Company paid a dividend of $0.65 per share of Common Stock to shareholders of record as of the close of business on March 31, 2015 . On June 17, 2015 , the Company's Board of Directors declared a dividend of $0.65 per share of Common Stock payable on July 31, 2015 to shareholders of record as of the close of business on June 30, 2015 . As of June 30, 2015 , the Company had 80,000 shares ( 8,000,000 depositary shares each representing 1/100th of a share) outstanding of its 5.25% Series B Cumulative Redeemable Preferred Stock with a liquidation preference of $2,500.00 per share ( $25.00 per depositary share). The Company pays cumulative cash dividends on the Series B Preferred Stock at a rate of 5.25% per annum of the $2,500.00 liquidation preference per share. The Company may not redeem the Series B Preferred Stock prior to March 27, 2018, except in certain circumstances relating to the preservation of the Company's REIT status. On or after March 27, 2018, the Company, at its option, may redeem the Series B Preferred Stock for a cash redemption price of $2,500.00 per share ( $25.00 per depositary share), plus all accrued and unpaid dividends. The Series B Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into any other security of the Company or its affiliates. On February 17, 2015 , the Company paid a dividend on its outstanding Series B Preferred Stock of $32.8125 per share. On May 15, 2015 , the Company paid a dividend on its outstanding Series B Preferred Stock of $32.8125 per share. On June 17, 2015 , the Company's Board of Directors declared a dividend of $32.8125 per share of Series B Preferred Stock payable on August 17, 2015 to shareholders of record as of the close of business on August 5, 2015 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. Earnings Per Share The following table provides a reconciliation of both the net income attributable to Boston Properties, Inc. common shareholders and the number of common shares used in the computation of basic earnings per share (“EPS”), which is calculated by dividing net income attributable to Boston Properties, Inc. common shareholders by the weighted-average number of common shares outstanding during the period. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are also participating securities. As such, unvested restricted common stock of the Company, LTIP Units, 2012 OPP Units and MYLTIP Units are considered participating securities. Participating securities are included in the computation of basic EPS of the Company using the two -class method. Participating securities are included in the computation of diluted EPS of the Company using the if-converted method if the impact is dilutive. Because the 2012 OPP Units required and the MYLTIP Units require the Company to outperform absolute and relative return thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes such units from the diluted EPS calculation. Other potentially dilutive common shares, including stock options, restricted stock and other securities of the Operating Partnership that are exchangeable for the Company’s Common Stock, and the related impact on earnings, are considered when calculating diluted EPS. For the three months ended June 30, 2015 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 $ 79,460 153,450 $ 0.52 Effect of Dilutive Securities: Stock Based Compensation — 365 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 79,460 153,815 $ 0.52 For the three months ended June 30, 2014 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 $ 76,527 153,078 $ 0.50 Effect of Dilutive Securities: Stock Based Compensation — 160 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 76,527 153,238 $ 0.50 For the six months ended June 30, 2015 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 $ 250,694 153,341 $ 1.63 Allocation of undistributed earnings to participating securities (141 ) — — Net income attributable to Boston Properties, Inc. common shareholders $ 250,553 153,341 $ 1.63 Effect of Dilutive Securities: Stock Based Compensation — 504 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 250,553 153,845 $ 1.63 For the six months ended June 30, 2014 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 $ 130,594 153,054 $ 0.85 Effect of Dilutive Securities: Stock Based Compensation — 149 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 130,594 153,203 $ 0.85 |
Stock Option and Incentive Plan
Stock Option and Incentive Plan | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option and Incentive Plan | 10. Stock Option and Incentive Plan On January 21, 2015, the Company's Compensation Committee approved the 2015 Multi-Year, Long-Term Incentive Program awards under the Company's 2012 Plan to certain officers and employees of the Company. The 2015 MYLTIP awards utilize TRS over a three -year measurement period, on an annualized, compounded basis, as the performance metric. Earned awards will be based on the Company's TRS relative to (i) the Cohen & Steers Realty Majors Portfolio Index ( 50% weight) and (ii) the NAREIT Office Index adjusted to exclude the Company ( 50% weight). Earned awards will range from $0 to a maximum of approximately $40.8 million depending on the Company's TRS relative to the two indices, with three tiers (threshold: approximately $8.2 million ; target: approximately $16.3 million ; high: approximately $40.8 million ) and linear interpolation between tiers. Earned awards measured on the basis of relative TRS performance are subject to an absolute TRS component in the form of relatively simple modifiers that (A) reduce the level of earned awards in the event the Company's annualized TRS is less than 0% and (B) cause some awards to be earned in the event the Company's annualized TRS is more than 12% even though on a relative basis alone the Company's TRS would not result in any earned awards. Earned awards (if any) will vest 50% on February 4, 2018 and 50% on February 4, 2019 , based on continued employment. Vesting will be accelerated in the event of a change in control, termination of employment by the Company without cause, or termination of employment by the award recipient for good reason, death, disability or retirement. If there is a change of control prior to February 4, 2018, earned awards will be calculated based on TRS performance up to the date of the change of control. The 2015 MYLTIP awards are in the form of LTIP Units issued on the grant date which (i) are subject to forfeiture to the extent awards are not earned and (ii) prior to the performance measurement date are only entitled to one-tenth ( 10% ) of the regular quarterly distributions payable on common partnership units. Under the FASB's Accounting Standards Codification (“ASC”) 718 “Compensation-Stock Compensation,” the 2015 MYLTIP awards have an aggregate value of approximately $15.7 million , which amount will generally be amortized into earnings over the four -year plan period under the graded vesting method. On February 6, 2015, the measurement period for the Company’s 2012 OPP Unit awards ended and the Company’s TRS performance was sufficient for employees to earn and therefore become eligible to vest in a portion of the 2012 OPP Unit awards. The final outperformance pool was determined to be approximately $32.1 million , or approximately 80% of the total maximum outperformance pool of $40.0 million . As a result, 174,549 2012 OPP Units were automatically forfeited. During the six months ended June 30, 2015 , the Company issued 34,150 shares of restricted common stock, 190,563 LTIP Units (including 85,962 LTIP Units issued on January 1, 2015 to Mortimer B. Zuckerman, non-executive Chairman of the Board, pursuant to the Transition Benefits Agreement dated March 10, 2013) and 375,000 2015 MYLTIP Units to employees and non-employee directors under the 2012 Plan. Employees and non-employee directors paid $0.01 per share of restricted common stock and $0.25 per LTIP Unit and 2015 MYLTIP Unit. An LTIP Unit is generally the economic equivalent of a share of restricted stock in the Company. The aggregate value of the LTIP Units is included in noncontrolling interests in the Consolidated Balance Sheets. Grants of restricted stock and LTIP Units to employees vest in four equal annual installments. Restricted stock is measured at fair value on the date of grant based on the number of shares granted, as adjusted for forfeitures, and the closing price of the Company’s Common Stock on the date of grant as quoted on the New York Stock Exchange. Such value is recognized as an expense ratably over the corresponding employee service period. The shares of restricted stock granted during the six months ended June 30, 2015 were valued at approximately $4.8 million ( $140.88 per share weighted-average). The LTIP Units granted (excluding the number issued to Mr. Zuckerman, as discussed above) were valued at approximately $13.5 million ( $128.94 per unit weighted-average fair value) using a Monte Carlo simulation method model. The per unit fair values of the LTIP Units granted were estimated on the dates of grant and for a substantial majority of such units were valued using the following assumptions: an expected life of 5.7 years , a risk-free interest rate of 1.47% and an expected price volatility of 26% . The value of the LTIP Units issued to Mr. Zuckerman was expensed between March 2013 and July 2014 in accordance with the vesting schedule set forth in the Transition Benefits Agreement. As the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units are subject to both a service condition and a market condition, the Company recognizes the compensation expense related to the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units under the graded vesting attribution method. Under the graded vesting attribution method, each portion of the award that vests at a different date is accounted for as a separate award and recognized over the period appropriate to that portion so that the compensation cost for each portion should be recognized in full by the time that portion vests. Dividends paid on both vested and unvested shares of restricted stock are charged directly to Dividends in Excess of Earnings in the Consolidated Balance Sheets. Aggregate stock-based compensation expense associated with restricted stock, non-qualified stock options, LTIP Units, 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units was approximately $5.1 million and $6.2 million for the three months ended June 30, 2015 and 2014 , respectively, and approximately $15.2 million and $16.0 million for the six months ended June 30, 2015 and 2014 , respectively. At June 30, 2015 , there was $23.3 million of unrecognized compensation expense related to unvested restricted stock and LTIP Units and $24.1 million of unrecognized compensation expense related to unvested 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units that is expected to be recognized over a weighted-average period of approximately 2.7 years . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information The Company’s segments are based on the Company’s method of internal reporting which classifies its operations by both geographic area and property type. The Company’s segments by geographic area are Boston, New York, San Francisco and Washington, DC. Segments by property type include: Class A Office, Office/Technical, Residential and Hotel. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Interest and other income, development and management services income, general and administrative expenses, transaction costs, interest expense, depreciation and amortization expense, gains (losses) from investments in securities, income from unconsolidated joint ventures, gains on sales of real estate, noncontrolling interests and preferred dividends are not included in Net Operating Income as internal reporting addresses these items on a corporate level. Net Operating Income is not a measure of operating results or cash flows from operating activities as measured by accounting principles generally accepted in the United States of America, and it is not indicative of cash available to fund cash needs and should not be considered an alternative to cash flows as a measure of liquidity. All companies may not calculate Net Operating Income in the same manner. The Company considers Net Operating Income to be an appropriate supplemental measure to net income because it helps both investors and management to understand the core operations of the Company’s properties. The Company's management also uses Net Operating Income to evaluate regional property level performance and to make decisions about resource allocations. Further, the Company believes Net Operating Income is useful to investors as a performance measure because, when compared across periods, Net Operating Income reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspectives not immediately apparent from net income attributable to Boston Properties, Inc. common shareholders. Information by geographic area and property type (dollars in thousands): For the three months ended June 30, 2015 : Boston New York San Francisco Washington, DC Total Rental Revenue: Class A Office $ 174,894 $ 246,432 $ 68,781 $ 91,489 $ 581,596 Office/Technical 6,042 — 5,554 2,953 14,549 Residential 1,131 — — 2,680 3,811 Hotel 13,403 — — — 13,403 Total 195,470 246,432 74,335 97,122 613,359 % of Grand Totals 31.87 % 40.18 % 12.12 % 15.83 % 100.00 % Rental Expenses: Class A Office 67,874 85,661 23,416 32,180 209,131 Office/Technical 1,779 — 999 1,024 3,802 Residential 511 — — 1,020 1,531 Hotel 8,495 — — — 8,495 Total 78,659 85,661 24,415 34,224 222,959 % of Grand Totals 35.28 % 38.42 % 10.95 % 15.35 % 100.00 % Net operating income $ 116,811 $ 160,771 $ 49,920 $ 62,898 $ 390,400 % of Grand Totals 29.92 % 41.18 % 12.79 % 16.11 % 100.00 % For the three months ended June 30, 2014 : Boston New York San Francisco Washington, DC Total Rental Revenue: Class A Office $ 173,128 $ 223,899 $ 57,450 $ 94,222 $ 548,699 Office/Technical 5,912 — 6,341 3,671 15,924 Residential 1,089 — — 5,209 6,298 Hotel 12,367 — — — 12,367 Total 192,496 223,899 63,791 103,102 583,288 % of Grand Totals 33.00 % 38.39 % 10.94 % 17.67 % 100.00 % Rental Expenses: Class A Office 65,818 74,962 21,282 32,481 194,543 Office/Technical 1,736 — 1,308 1,123 4,167 Residential 544 — — 3,392 3,936 Hotel 7,315 — — — 7,315 Total 75,413 74,962 22,590 36,996 209,961 % of Grand Totals 35.92 % 35.70 % 10.76 % 17.62 % 100.00 % Net operating income $ 117,083 $ 148,937 $ 41,201 $ 66,106 $ 373,327 % of Grand Totals 31.36 % 39.89 % 11.04 % 17.71 % 100.00 % For the six months ended June 30, 2015 : Boston New York San Washington, Total Rental Revenue: Class A Office $ 344,801 $ 499,530 $ 135,033 $ 184,620 $ 1,163,984 Office/Technical 12,162 — 11,213 5,995 29,370 Residential 2,309 — — 8,356 10,665 Hotel 22,488 — — — 22,488 Total 381,760 499,530 146,246 198,971 1,226,507 % of Grand Totals 31.13 % 40.73 % 11.92 % 16.22 % 100.00 % Rental Expenses: Class A Office 142,339 170,722 45,325 64,460 422,846 Office/Technical 3,765 — 1,911 2,215 7,891 Residential 1,020 — — 4,057 5,077 Hotel 16,071 — — — 16,071 Total 163,195 170,722 47,236 70,732 451,885 % of Grand Totals 36.12 % 37.78 % 10.45 % 15.65 % 100.00 % Net operating income $ 218,565 $ 328,808 $ 99,010 $ 128,239 $ 774,622 % of Grand Totals 28.22 % 42.45 % 12.78 % 16.55 % 100.00 % For the six months ended June 30, 2014 : Boston New York San Washington, Total Rental Revenue: Class A Office $ 344,070 $ 441,207 $ 112,058 $ 191,270 $ 1,088,605 Office/Technical 11,732 — 12,558 7,331 31,621 Residential 2,252 — — 9,728 11,980 Hotel 20,560 — — — 20,560 Total 378,614 441,207 124,616 208,329 1,152,766 % of Grand Totals 32.84 % 38.28 % 10.81 % 18.07 % 100.00 % Rental Expenses: Class A Office 137,216 149,333 40,595 65,920 393,064 Office/Technical 3,425 — 2,522 2,325 8,272 Residential 992 — — 6,706 7,698 Hotel 14,112 — — — 14,112 Total 155,745 149,333 43,117 74,951 423,146 % of Grand Totals 36.81 % 35.29 % 10.19 % 17.71 % 100.00 % Net operating income $ 222,869 $ 291,874 $ 81,499 $ 133,378 $ 729,620 % of Grand Totals 30.55 % 40.00 % 11.17 % 18.28 % 100.00 % The following is a reconciliation of Net Operating Income to net income attributable to Boston Properties, Inc. common shareholders: Three months ended Six months ended June 30, 2015 2014 2015 2014 (in thousands) Net Operating Income $ 390,400 $ 373,327 $ 774,622 $ 729,620 Add: Development and management services income 4,862 6,506 10,190 11,722 Income from unconsolidated joint ventures 3,078 2,834 17,912 5,650 Interest and other income 1,293 2,109 2,700 3,420 Gains (losses) from investments in securities (24 ) 662 369 948 Gains on sales of real estate — — 95,084 — Less: General and administrative expense 22,284 23,271 51,075 53,176 Transaction costs 208 661 535 1,098 Depreciation and amortization expense 167,844 154,628 322,067 308,898 Interest expense 108,534 110,977 217,291 224,531 Noncontrolling interests in property partnerships 9,264 7,553 24,472 11,907 Noncontrolling interest—redeemable preferred units of the Operating Partnership 3 320 6 939 Noncontrolling interest—common units of the Operating Partnership 9,394 8,883 29,530 15,010 Preferred dividends 2,618 2,618 5,207 5,207 Net income attributable to Boston Properties, Inc. common shareholders $ 79,460 $ 76,527 $ 250,694 $ 130,594 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 12. Subsequent Events From July 1, 2015 through August 7, 2015, 767 Fifth Partners LLC, which is the consolidated entity (in which the Company has a 60% interest and owns 767 Fifth Avenue (the General Motors Building) in New York City), entered into four forward-starting interest rate swap contracts which fix the 10 -year swap rate at a weighted-average rate of 2.813% per annum on notional amounts aggregating $100.0 million . The interest rate swap contracts were entered into in advance of a financing with a target commencement date in June 2017 and maturity in June 2027 (See Note 5). In addition, the Company entered into one forward-starting interest rate swap contract which fixes the 10 -year swap rate at a rate of 2.532% per annum on a notional amount of $25.0 million . The interest rate swap contract was entered into in advance of a financing with a target commencement date in September 2016 and maturity in September 2026 (See Note 5). On July 29, 2015, a consolidated entity in which the Company has a 50% interest executed a binding agreement for the sale of 505 9th Street, N.W. located in Washington, DC, for approximately $318.0 million (which exceeds its carrying value), including the assumption by the buyer of approximately $117.0 million of mortgage indebtedness. 505 9th Street, N.W. is an approximately 322,000 net rentable square foot Class A office building. The sale is subject to the satisfaction of customary closing conditions and there can be no assurance that the sale will be consummated on the terms currently contemplated or at all. On July 31, 2015, the Company entered into a 99 -year ground and air rights lease (the “Lease”) with the Massachusetts Department of Transportation (“MDOT”) with respect to the parking garage located at 100 Clarendon Street (the “Clarendon Garage”) and the concourse level of the Massachusetts Bay Transportation Authority’s Back Bay Station (the “Station”). The Lease amends and restates the air rights lease which the Company had assumed in 2010 at the time it acquired its interests in both the Clarendon Garage and the office tower located at 200 Clarendon Street (formerly the John Hancock Tower). The previous lease had 45 years remaining in its term. Upon execution of the Lease, the Company made a $5.0 million option payment which provides the Company with options under the Lease to acquire certain air rights above both the Clarendon Garage and the Station; the amount of developable square footage associated with the air rights will be determined at a later date . In consideration for MDOT entering into the new Lease, the Company has agreed to make improvements to the Station in an amount of $32.0 million , which amount will be credited against the Company’s rental obligations under the Lease. On August 6, 2015, the Company executed an amendment to the joint venture agreement for its Fountain Square property located in Reston, Virginia. The amendment requires the Company to acquire its partner's nominal 50% interest on September 15, 2015 for approximately $100.9 million in cash (See Note 7). |
Basis Of Presentation And Sum20
Basis Of Presentation And Summary Of Significant Accounting Policies Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncement [Policy Text Block] | Recent Accounting Pronouncements On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" (“ASU 2014-08”). ASU 2014-08 clarifies that discontinued operations presentation applies only to disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results (e.g., a disposal of a major geographical area, a major line of business, a major equity method investment or other major parts of an entity). ASU 2014-08 is effective prospectively for reporting periods beginning after December 15, 2014. Early adoption is permitted, and the Company early adopted ASU 2014-08 during the first quarter of 2014. The Company’s adoption of ASU 2014-08 resulted in the operating results and gain on sale of real estate from the operating property sold during the six months ended June 30, 2015 not being reflected as Discontinued Operations in the Company's Consolidated Statements of Operations (See Note 3 ). In February 2015, the FASB issued ASU 2015-02, “ Consolidation (Topic 810): Amendments to the Consolidation Analysis” (“ASU 2015-02”). ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 modifies the evaluation of whether limited partnerships and similar legal entities are VIEs or voting interest entities, eliminates the presumption that a general partner should consolidate a limited partnership and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. A reporting entity may apply the amendments in ASU 2015-02 using: (a) a modified retrospective approach by recording a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption; or (b) by applying the amendments retrospectively. The Company is currently assessing the potential impact that the adoption of ASU 2015-02 will have on its consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs " ("ASU 2015-03"), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs is not affected. ASU 2015-03 is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years and shall be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. Early adoption is permitted for financial statements that have not been previously issued. The Company does not expect the adoption of ASU 2015-03 to have a material impact on its consolidated financial statements. |
Basis Of Presentation And Sum21
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Carrying Value Of Indebtedness And Corresponding Estimate Of Fair Value | The following table presents the aggregate carrying value of the Company’s indebtedness and the Company’s corresponding estimate of fair value as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 December 31, 2014 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgage notes payable $ 4,269,808 $ 4,401,756 $ 4,309,484 $ 4,449,541 Mezzanine notes payable 309,148 306,130 309,796 306,156 Unsecured senior notes 5,288,503 5,602,523 5,287,704 5,645,819 Total $ 9,867,459 $ 10,310,409 $ 9,906,984 $ 10,401,516 |
Investments in Unconsolidated22
Investments in Unconsolidated Joint Ventures (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments In Unconsolidated Joint Ventures [Abstract] | |
Investments In Unconsolidated Joint Ventures | The investments in unconsolidated joint ventures consist of the following at June 30, 2015 : Nominal % Ownership Carrying Value of Investment (1) Entity Properties June 30, 2015 December 31, 2014 (in thousands) Square 407 Limited Partnership Market Square North 50.0 % $ (10,161 ) $ (8,022 ) The Metropolitan Square Associates LLC Metropolitan Square 51.0 % 9,188 8,539 BP/CRF 901 New York Avenue LLC 901 New York Avenue 25.0 % (2) (12,411 ) (1,080 ) WP Project Developer LLC Wisconsin Place Land and Infrastructure 33.3 % (3) 44,597 45,514 Annapolis Junction NFM, LLC Annapolis Junction 50.0 % (4) 26,812 25,246 540 Madison Venture LLC 540 Madison Avenue 60.0 % 68,627 68,128 500 North Capitol LLC 500 North Capitol Street, NW 30.0 % (2,755 ) (2,250 ) 501 K Street LLC 1001 6th Street 50.0 % (5) 42,704 41,736 Podium Developer LLC North Station (Phase I - Air Rights) 50.0 % 6,609 4,231 1265 Main Office JV LLC 1265 Main Street 50.0 % 2,209 N/A BNY Tower Holdings LLC Dock72 at the Brooklyn Navy Yard 50.0 % 9,228 N/A $ 184,647 $ 182,042 _______________ (1) Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014 , respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. (2) The Company’s economic ownership has increased based on the achievement of certain return thresholds. (3) The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project. (4) The joint venture owns two in-service buildings, two buildings under construction and two undeveloped land parcels. (5) Under the joint venture agreement, the partner will be entitled to up to two additional payments from the venture based on increases in total square footage of the project above 520,000 square feet and achieving certain project returns at stabilization. |
Schedule Of Balance Sheets Of The Unconsolidated Joint Ventures [Text Block] | The combined summarized balance sheets of the Company's unconsolidated joint ventures are as follows: June 30, December 31, (in thousands) ASSETS Real estate and development in process, net $ 1,038,567 $ 1,034,552 Other assets 243,773 264,097 Total assets $ 1,282,340 $ 1,298,649 LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY Mortgage and notes payable $ 832,860 $ 830,075 Other liabilities 35,483 34,211 Members’/Partners’ equity 413,997 434,363 Total liabilities and members’/partners’ equity $ 1,282,340 $ 1,298,649 Company’s share of equity $ 212,065 $ 209,828 Basis differentials (1) (27,418 ) (27,786 ) Carrying value of the Company’s investments in unconsolidated joint ventures (2) $ 184,647 $ 182,042 _______________ (1) This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from impairment of investments and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. (2) Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014 , respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. |
Statements Of Operations Of The Joint Ventures | The combined summarized statements of operations of the Company's unconsolidated joint ventures are as follows: For the three months ended June 30, For the six months ended June 30, 2015 2014 2015 2014 (in thousands) Total revenue (1) $ 39,152 $ 38,437 $ 78,684 $ 76,471 Expenses Operating 15,824 15,461 32,099 30,925 Depreciation and amortization 8,951 9,167 18,022 18,259 Total expenses 24,775 24,628 50,121 49,184 Operating income 14,377 13,809 28,563 27,287 Other expense Interest expense 7,986 7,984 15,966 15,996 Net income $ 6,391 $ 5,825 $ 12,597 $ 11,291 Company’s share of net income $ 2,902 $ 2,578 $ 17,544 (2) $ 5,203 Basis differential 176 256 368 447 Income from unconsolidated joint ventures $ 3,078 $ 2,834 $ 17,912 $ 5,650 _______________ (1) Includes straight-line rent adjustments of approximately $0.3 million and $0.3 million for the three months ended June 30, 2015 and 2014 , respectively, and approximately $2.0 million and $0.9 million for the six months ended June 30, 2015 and 2014 . Includes net above-/below-market rent adjustments of approximately $(0.1) million and $(0.1) million for the three months ended June 30, 2015 and 2014 , respectively, and approximately $(0.1) million and $0.0 million for the six months ended June 30, 2015 and 2014 , respectively. (2) During the six months ended June 30, 2015 , the Company received a distribution of approximately $24.5 million , which was generated from the excess loan proceeds from the refinancing of 901 New York Avenue's mortgage loan to a new 10 -year mortgage loan totaling $225.0 million . The Company’s allocation of income and distributions for the six months ended June 30, 2015 was not proportionate to its nominal ownership interest as a result of the achievement of specified investment return thresholds, as provided for in the joint venture agreement. |
Derivative Instruments and He23
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | Derivative Instrument Notional Amount Effective Date Maturity Date Strike Rate Balance Sheet Location Fair Value (in thousands) (in thousands) Boston Properties Limited Partnership: Interest Rate Swap $ 50,000 September 1, 2016 September 1, 2026 2.571 % Prepaid Expenses and Other Assets $ 1,003 Interest Rate Swap 75,000 September 1, 2016 September 1, 2026 2.476 % Prepaid Expenses and Other Assets 2,172 Interest Rate Swap 50,000 September 1, 2016 September 1, 2026 2.523 % Prepaid Expenses and Other Assets 1,215 Interest Rate Swap 50,000 September 1, 2016 September 1, 2026 2.480 % Prepaid Expenses and Other Assets 1,402 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.348 % Prepaid Expenses and Other Assets 1,008 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.249 % Prepaid Expenses and Other Assets 1,208 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.242 % Prepaid Expenses and Other Assets 1,242 Interest Rate Swap 25,000 September 1, 2016 September 1, 2026 2.541 % Prepaid Expenses and Other Assets 567 $ 325,000 2.458 % $ 9,817 767 Fifth Partners LLC: Interest Rate Swap $ 25,000 June 7, 2017 June 7, 2027 2.683 % Prepaid Expenses and Other Assets $ 618 Interest Rate Swap 50,000 June 7, 2017 June 7, 2027 2.677 % Prepaid Expenses and Other Assets 1,261 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.913 % Prepaid Expenses and Other Assets 123 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.857 % Prepaid Expenses and Other Assets 244 Interest Rate Swap 25,000 June 7, 2017 June 7, 2027 2.950 % Prepaid Expenses and Other Assets 43 $ 150,000 2.793 % $ 2,289 $ 475,000 $ 12,106 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table presents the location in the financial statements of the gains or losses recognized related to the Company's cash flow hedges for the three and six months ended June 30, 2015 and 2014 : Three months ended Six months ended 2015 2014 2015 2014 (in thousands) (in thousands) Amount of gain related to the effective portion recognized in other comprehensive income (loss) $ 15,639 $ — $ 12,106 $ — Amount of loss related to the effective portion subsequently reclassified to earnings (1) $ (628 ) $ (624 ) $ (1,255 ) $ (1,253 ) Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing $ — $ — $ — $ — ___________ (1) Consists of amounts from previous interest rate hedging programs. |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table reflects the changes in accumulated other comprehensive income (loss) for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ (9,304 ) Effective portion of interest rate contracts 12,106 Amortization of interest rate contracts (1) 1,255 Other comprehensive income attributable to noncontrolling interests (2,209 ) Balance at June 30, 2015 $ 1,848 Balance at December 31, 2013 $ (11,556 ) Amortization of interest rate contracts (1) 1,253 Other comprehensive income attributable to noncontrolling interests (126 ) Balance at June 30, 2014 $ (10,429 ) ___________ (1) Consists of amounts from previous interest rate hedging programs. |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Schedule Of Noncontrolling Interest Property Partnerships [Table Text Block] | The following table reflects the activity of the noncontrolling interests in property partnerships for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 1,602,467 Capital contributions 1,089 Net income 20,031 Accumulated other comprehensive income 916 Distributions (34,022 ) Balance at June 30, 2015 $ 1,590,481 Balance at December 31, 2013 $ 726,132 Capital contributions 1,675 Net income 5,438 Distributions (12,149 ) Balance at June 30, 2014 $ 721,096 |
Schedule Of redeemable preferred units | The following table reflects the activity of the noncontrolling interests—redeemable preferred units of the Operating Partnership for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 633 Net income 6 Distributions (6 ) Redemption of redeemable preferred units (Series Four Preferred Units) (633 ) Balance at June 30, 2015 $ — Balance at December 31, 2013 $ 51,312 Net income 939 Distributions (939 ) Conversion of redeemable preferred units (Series Two Preferred Units) to common units (33,306 ) Balance at June 30, 2014 $ 18,006 |
Schedule of Redeemable Interest in Property Partnerships [Table Text Block] | The following table reflects the activity of the noncontrolling interest—redeemable interest in property partnership in the Company's Fountain Square consolidated entity for the six months ended June 30, 2015 and 2014 (in thousands): Balance at December 31, 2014 $ 104,692 Net loss (24 ) Distributions (2,900 ) Adjustment to reflect redeemable interest at redemption value 4,465 Balance at June 30, 2015 $ 106,233 Balance at December 31, 2013 $ 99,609 Net loss (240 ) Distributions (2,300 ) Adjustment to reflect redeemable interest at redemption value 6,709 (1) Balance at June 30, 2014 $ 103,778 _______________ (1) Includes an out-of-period adjustment totaling approximately $2.4 million (See Note 2). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation Of Basic And Diluted Earnings Per Share | For the three months ended June 30, 2015 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 $ 79,460 153,450 $ 0.52 Effect of Dilutive Securities: Stock Based Compensation — 365 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 79,460 153,815 $ 0.52 For the three months ended June 30, 2014 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 $ 76,527 153,078 $ 0.50 Effect of Dilutive Securities: Stock Based Compensation — 160 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 76,527 153,238 $ 0.50 For the six months ended June 30, 2015 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 $ 250,694 153,341 $ 1.63 Allocation of undistributed earnings to participating securities (141 ) — — Net income attributable to Boston Properties, Inc. common shareholders $ 250,553 153,341 $ 1.63 Effect of Dilutive Securities: Stock Based Compensation — 504 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 250,553 153,845 $ 1.63 For the six months ended June 30, 2014 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 $ 130,594 153,054 $ 0.85 Effect of Dilutive Securities: Stock Based Compensation — 149 — Diluted Earnings: Net income attributable to Boston Properties, Inc. common shareholders $ 130,594 153,203 $ 0.85 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Information By Geographic Area And Property Type | Information by geographic area and property type (dollars in thousands): For the three months ended June 30, 2015 : Boston New York San Francisco Washington, DC Total Rental Revenue: Class A Office $ 174,894 $ 246,432 $ 68,781 $ 91,489 $ 581,596 Office/Technical 6,042 — 5,554 2,953 14,549 Residential 1,131 — — 2,680 3,811 Hotel 13,403 — — — 13,403 Total 195,470 246,432 74,335 97,122 613,359 % of Grand Totals 31.87 % 40.18 % 12.12 % 15.83 % 100.00 % Rental Expenses: Class A Office 67,874 85,661 23,416 32,180 209,131 Office/Technical 1,779 — 999 1,024 3,802 Residential 511 — — 1,020 1,531 Hotel 8,495 — — — 8,495 Total 78,659 85,661 24,415 34,224 222,959 % of Grand Totals 35.28 % 38.42 % 10.95 % 15.35 % 100.00 % Net operating income $ 116,811 $ 160,771 $ 49,920 $ 62,898 $ 390,400 % of Grand Totals 29.92 % 41.18 % 12.79 % 16.11 % 100.00 % For the three months ended June 30, 2014 : Boston New York San Francisco Washington, DC Total Rental Revenue: Class A Office $ 173,128 $ 223,899 $ 57,450 $ 94,222 $ 548,699 Office/Technical 5,912 — 6,341 3,671 15,924 Residential 1,089 — — 5,209 6,298 Hotel 12,367 — — — 12,367 Total 192,496 223,899 63,791 103,102 583,288 % of Grand Totals 33.00 % 38.39 % 10.94 % 17.67 % 100.00 % Rental Expenses: Class A Office 65,818 74,962 21,282 32,481 194,543 Office/Technical 1,736 — 1,308 1,123 4,167 Residential 544 — — 3,392 3,936 Hotel 7,315 — — — 7,315 Total 75,413 74,962 22,590 36,996 209,961 % of Grand Totals 35.92 % 35.70 % 10.76 % 17.62 % 100.00 % Net operating income $ 117,083 $ 148,937 $ 41,201 $ 66,106 $ 373,327 % of Grand Totals 31.36 % 39.89 % 11.04 % 17.71 % 100.00 % For the six months ended June 30, 2015 : Boston New York San Washington, Total Rental Revenue: Class A Office $ 344,801 $ 499,530 $ 135,033 $ 184,620 $ 1,163,984 Office/Technical 12,162 — 11,213 5,995 29,370 Residential 2,309 — — 8,356 10,665 Hotel 22,488 — — — 22,488 Total 381,760 499,530 146,246 198,971 1,226,507 % of Grand Totals 31.13 % 40.73 % 11.92 % 16.22 % 100.00 % Rental Expenses: Class A Office 142,339 170,722 45,325 64,460 422,846 Office/Technical 3,765 — 1,911 2,215 7,891 Residential 1,020 — — 4,057 5,077 Hotel 16,071 — — — 16,071 Total 163,195 170,722 47,236 70,732 451,885 % of Grand Totals 36.12 % 37.78 % 10.45 % 15.65 % 100.00 % Net operating income $ 218,565 $ 328,808 $ 99,010 $ 128,239 $ 774,622 % of Grand Totals 28.22 % 42.45 % 12.78 % 16.55 % 100.00 % For the six months ended June 30, 2014 : Boston New York San Washington, Total Rental Revenue: Class A Office $ 344,070 $ 441,207 $ 112,058 $ 191,270 $ 1,088,605 Office/Technical 11,732 — 12,558 7,331 31,621 Residential 2,252 — — 9,728 11,980 Hotel 20,560 — — — 20,560 Total 378,614 441,207 124,616 208,329 1,152,766 % of Grand Totals 32.84 % 38.28 % 10.81 % 18.07 % 100.00 % Rental Expenses: Class A Office 137,216 149,333 40,595 65,920 393,064 Office/Technical 3,425 — 2,522 2,325 8,272 Residential 992 — — 6,706 7,698 Hotel 14,112 — — — 14,112 Total 155,745 149,333 43,117 74,951 423,146 % of Grand Totals 36.81 % 35.29 % 10.19 % 17.71 % 100.00 % Net operating income $ 222,869 $ 291,874 $ 81,499 $ 133,378 $ 729,620 % of Grand Totals 30.55 % 40.00 % 11.17 % 18.28 % 100.00 % |
Schedule Of Reconciliation Of Net Operating Income To Net Income | The following is a reconciliation of Net Operating Income to net income attributable to Boston Properties, Inc. common shareholders: Three months ended Six months ended June 30, 2015 2014 2015 2014 (in thousands) Net Operating Income $ 390,400 $ 373,327 $ 774,622 $ 729,620 Add: Development and management services income 4,862 6,506 10,190 11,722 Income from unconsolidated joint ventures 3,078 2,834 17,912 5,650 Interest and other income 1,293 2,109 2,700 3,420 Gains (losses) from investments in securities (24 ) 662 369 948 Gains on sales of real estate — — 95,084 — Less: General and administrative expense 22,284 23,271 51,075 53,176 Transaction costs 208 661 535 1,098 Depreciation and amortization expense 167,844 154,628 322,067 308,898 Interest expense 108,534 110,977 217,291 224,531 Noncontrolling interests in property partnerships 9,264 7,553 24,472 11,907 Noncontrolling interest—redeemable preferred units of the Operating Partnership 3 320 6 939 Noncontrolling interest—common units of the Operating Partnership 9,394 8,883 29,530 15,010 Preferred dividends 2,618 2,618 5,207 5,207 Net income attributable to Boston Properties, Inc. common shareholders $ 79,460 $ 76,527 $ 250,694 $ 130,594 |
Organization (Details)
Organization (Details) - Equity Component [Domain] ft² in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015ft²asharesVehiclesReal_Estate_Propertiesyr | Dec. 31, 2014shares | |
Real Estate Properties [Line Items] | ||
General and limited partnership interest in the operating partnership (percent) | 89.50% | 89.50% |
Restriction on redemption of OP units from date of issuance (years) | yr | 1 | |
in lieu of a cash redemption OP unit to Common Stock conversion (in shares) | shares | 1 | |
One OP unit is equivalent to one share of Common Stock (in shares) | shares | 1 | |
OP unit conversion rate (in shares) | shares | 1 | |
Number Of Series Of Preferred Units Outstanding | shares | 1 | |
Number of vehicles in structured parking | Vehicles | 43,341 | |
Area of parking (in square feet) | ft² | 14.7 | |
Area of undeveloped land parcels owned (in acres) | a | 484.4 | |
Commercial Real Estate Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 170 | |
Net Rentable Area (in sf) | ft² | 46.3 | |
Total Properties Under Construction [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 13 | |
Net Rentable Area (in sf) | ft² | 4.2 | |
Total Office Properties [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 162 | |
Class A Office Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 131 | |
Office Properties Under Construction [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 12 | |
Office Technical Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 31 | |
Hotel Property [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Retail Properties [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 5 | |
Retail Properties Under Construction [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Residential Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 2 | |
Series B Cumulative Redeemable Preferred Stock [Member] | ||
Real Estate Properties [Line Items] | ||
Ratio of depository shares to shares of Series B Preferred Stock | 0.01 | |
Series B, Shares Outstanding (in shares) | shares | 80,000 | 80,000 |
Series B, Dividend Rate, Percentage | 5.25% | |
Depository shares of Series B Cumulative Redeemable Preferred [Member] | ||
Real Estate Properties [Line Items] | ||
Series B, Shares Outstanding (in shares) | shares | 8,000,000 | |
Series B Preferred Units [Member] | ||
Real Estate Properties [Line Items] | ||
Series B, Shares Outstanding (in shares) | shares | 80,000 |
Basis Of Presentation And Sum28
Basis Of Presentation And Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2014USD ($) | |
Accounting Policies [Abstract] | |
Cumulative non-cash adjustment to the accretion of the changes in the redemption value of the noncontrolling interest | $ 2.4 |
Basis Of Presentation And Sum29
Basis Of Presentation And Summary Of Significant Accounting Policies (Carrying Value Of Indebtedness And Corresponding Estimate Of Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Summary Of Significant Accounting Policies [Line Items] | ||
Mortgage notes payable | $ 4,269,808 | $ 4,309,484 |
Mezzanine notes payable | 309,148 | 309,796 |
Unsecured senior notes | 5,288,503 | 5,287,704 |
Estimated Fair Value [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Mortgage notes payable | 4,401,756 | 4,449,541 |
Mezzanine notes payable | 306,130 | 306,156 |
Unsecured senior notes | 5,602,523 | 5,645,819 |
Total | 10,310,409 | 10,401,516 |
Carrying Amount [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Mortgage notes payable | 4,269,808 | 4,309,484 |
Mezzanine notes payable | 309,148 | 309,796 |
Unsecured senior notes | 5,288,503 | 5,287,704 |
Total | $ 9,867,459 | $ 9,906,984 |
Real Estate Activity During t30
Real Estate Activity During the Six Months Ended June 30, 2015 (Narrative) (Details) $ in Thousands | Mar. 17, 2015USD ($)ft²apartments | Feb. 19, 2015USD ($)a | Jun. 30, 2015USD ($) | Mar. 16, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | May. 01, 2015ft² |
Real Estate Properties [Line Items] | ||||||||
Operating income | $ 204,926 | $ 201,273 | $ 411,135 | $ 378,170 | ||||
Proceeds from sales of real estate | 194,821 | 0 | ||||||
Gains on sales of real estate | $ 0 | 0 | $ 95,084 | 0 | ||||
Washingtonian North land parcel [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Sale Price Of Sold Property | $ 8,700 | |||||||
Proceeds from sales of real estate | 8,300 | |||||||
Gains on sales of real estate | $ 3,700 | |||||||
Land sold (in acres) | a | 8.5 | |||||||
Area of Land (in acres) | a | 27 | |||||||
Residences on The Avenue [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Operating income | $ 1,100 | $ 900 | $ 1,700 | |||||
Rental revenue supoprt payments to buyer maximum | $ 6,000 | |||||||
Sale Price Of Sold Property | 196,000 | |||||||
Proceeds from sales of real estate | 192,500 | |||||||
Gains on sales of real estate | $ 91,400 | |||||||
Number of apartment units (apartment units) | apartments | 335 | |||||||
Reservoir Place North [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 73,000 | |||||||
Retail Site [Member] | Residences on The Avenue [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 50,000 |
Investments in Unconsolidated31
Investments in Unconsolidated Joint Ventures (Investments in Unconsolidated Joint Ventures) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)ft²Land_ParcelsBuildingspayments | Dec. 31, 2014USD ($) | ||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of the Company's investments in unconsolidated joint ventures | $ 209,974 | $ 193,394 | |
Square 407 Limited Partnership [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | Market Square North | ||
Ownership Percentage | 50.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ (10,161) | (8,022) |
The Metropolitan Square Associates LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | Metropolitan Square | ||
Ownership Percentage | 51.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 9,188 | 8,539 |
BP/CRF 901 New York Avenue LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | 901 New York Avenue | ||
Ownership Percentage | [2] | 25.00% | |
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ (12,411) | (1,080) |
WP Project Developer LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | Wisconsin Place Land and Infrastructure | ||
Ownership Percentage | [3] | 33.30% | |
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 44,597 | 45,514 |
Entity Owning Land And Infrastructure Of Project [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage | 33.30% | ||
Annapolis Junction NFM, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | Annapolis Junction | ||
Ownership Percentage | [4] | 50.00% | |
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 26,812 | 25,246 |
Number of real estate properties | Buildings | 2 | ||
Number of buildings under construction | Buildings | 2 | ||
Parcels of undeveloped land | Land_Parcels | 2 | ||
540 Madison Venture LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | 540 Madison Avenue | ||
Ownership Percentage | 60.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 68,627 | 68,128 |
500 North Capitol LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | 500 North Capitol Street, NW | ||
Ownership Percentage | 30.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ (2,755) | (2,250) |
501 K Street LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | 1001 6th Street | ||
Ownership Percentage | [5] | 50.00% | |
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 42,704 | 41,736 |
Potential additonal payments to joint venture partner | payments | 2 | ||
Minimum square footage to make a potential additional payment to joint venture partner (in sqft) | ft² | 520,000 | ||
Podium Developer LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | North Station (Phase I - Air Rights) | ||
Ownership Percentage | 50.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 6,609 | 4,231 |
1265 Main Office JV LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | 1265 Main Street | ||
Ownership Percentage | 50.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 2,209 | |
BNY Tower Holdings LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Properties | Dock72 at the Brooklyn Navy Yard | ||
Ownership Percentage | 50.00% | ||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 9,228 | |
Unconsolidated Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of the Company's investments in unconsolidated joint ventures | (25,300) | (11,400) | |
Unconsolidated Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of the Company's investments in unconsolidated joint ventures | [1],[6] | $ 184,647 | $ 182,042 |
[1] | (1)Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014, respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. | ||
[2] | (2)The Company’s economic ownership has increased based on the achievement of certain return thresholds. | ||
[3] | (3)The Company’s wholly-owned entity that owns the office component of the project also owns a 33.3% interest in the entity owning the land, parking garage and infrastructure of the project. | ||
[4] | 4)The joint venture owns two in-service buildings, two buildings under construction and two undeveloped land parcels. | ||
[5] | Under the joint venture agreement, the partner will be entitled to up to two additional payments from the venture based on increases in total square footage of the project above 520,000 square feet and achieving certain project returns at stabilization. | ||
[6] | (2)Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014, respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. |
Investments in Unconsolidated32
Investments in Unconsolidated Joint Ventures (Balance Sheets of the Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||
Real estate and development in process, net | $ 15,612,331 | $ 15,688,744 | |
Mortgage and notes payable | 4,269,808 | 4,309,484 | |
Other liabilities | 448,480 | 502,255 | |
Total liabilities and equity | 19,113,959 | 19,886,767 | |
Carrying value of the Company's investments in unconsolidated joint ventures | 209,974 | 193,394 | |
Unconsolidated Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Real estate and development in process, net | 1,038,567 | 1,034,552 | |
Other assets | 243,773 | 264,097 | |
Total assets | 1,282,340 | 1,298,649 | |
Mortgage and notes payable | 832,860 | 830,075 | |
Other liabilities | 35,483 | 34,211 | |
Members'/Partners' equity | 413,997 | 434,363 | |
Total liabilities and equity | 1,282,340 | 1,298,649 | |
Company's share of equity | 212,065 | 209,828 | |
Basis differentials | [1] | (27,418) | (27,786) |
Carrying value of the Company's investments in unconsolidated joint ventures | [2],[3] | 184,647 | 182,042 |
Unconsolidated Joint Ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Carrying value of the Company's investments in unconsolidated joint ventures | $ (25,300) | $ (11,400) | |
[1] | (1)This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials occur from impairment of investments and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. | ||
[2] | (1)Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014, respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. | ||
[3] | (2)Investments with deficit balances aggregating approximately $25.3 million and $11.4 million at June 30, 2015 and December 31, 2014, respectively, have been reflected within Other Liabilities on the Company's Consolidated Balance Sheets. |
Investments in Unconsolidated33
Investments in Unconsolidated Joint Ventures (Statements of Operations of the Joint Ventures) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)yr | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |||
Schedule of Equity Method Investments [Line Items] | |||||||
Total revenue | $ 618,221 | $ 589,794 | $ 1,236,697 | $ 1,164,488 | |||
Expenses | |||||||
Depreciation and amortization | 167,844 | 154,628 | 322,067 | 308,898 | |||
Total expenses | 413,295 | 388,521 | 825,562 | 786,318 | |||
Operating income | 204,926 | 201,273 | 411,135 | 378,170 | |||
Other expense | |||||||
Interest expense | 108,534 | 110,977 | 217,291 | 224,531 | |||
Net income | 100,739 | 95,901 | 309,909 | 163,657 | |||
Income from unconsolidated joint ventures | 3,078 | 2,834 | 17,912 | 5,650 | |||
Distribution related to excess loan proceeds | 24,527 | 357 | |||||
Mortgage loan | 4,269,808 | 4,269,808 | $ 4,309,484 | ||||
Unconsolidated Joint Ventures [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total revenue | [1] | 39,152 | 38,437 | 78,684 | 76,471 | ||
Expenses | |||||||
Operating | 15,824 | 15,461 | 32,099 | 30,925 | |||
Depreciation and amortization | 8,951 | 9,167 | 18,022 | 18,259 | |||
Total expenses | 24,775 | 24,628 | 50,121 | 49,184 | |||
Operating income | 14,377 | 13,809 | 28,563 | 27,287 | |||
Other expense | |||||||
Interest expense | 7,986 | 7,984 | 15,966 | 15,996 | |||
Net income | 6,391 | 5,825 | 12,597 | 11,291 | |||
Company's share of net income (loss) | 2,902 | 2,578 | 17,544 | [2] | 5,203 | ||
Basis differential | 176 | 256 | 368 | 447 | |||
Income from unconsolidated joint ventures | 3,078 | 2,834 | 17,912 | 5,650 | |||
Straight-line rent adjustments | 300 | 300 | 2,000 | 900 | |||
"Above" and "below" market rent adjustments, net | (100) | $ (100) | (100) | $ 0 | |||
Mortgage loan | 832,860 | 832,860 | $ 830,075 | ||||
901 New York Avenue Llc [Member] | |||||||
Other expense | |||||||
Distribution related to excess loan proceeds | 24,500 | ||||||
Mortgage loan | $ 225,000 | $ 225,000 | |||||
Mortgage loan term (in years) | yr | 10 | ||||||
[1] | Includes straight-line rent adjustments of approximately $0.3 million and $0.3 million for the three months ended June 30, 2015 and 2014, respectively, and approximately $2.0 million and $0.9 million for the six months ended June 30, 2015 and 2014. Includes net above-/below-market rent adjustments of approximately $(0.1) million and $(0.1) million for the three months ended June 30, 2015 and 2014, respectively, and approximately $(0.1) million and $0.0 million for the six months ended June 30, 2015 and 2014, respectively. | ||||||
[2] | During the six months ended June 30, 2015, the Company received a distribution of approximately $24.5 million, which was generated from the excess loan proceeds from the refinancing of 901 New York Avenue's mortgage loan to a new 10-year mortgage loan totaling $225.0 million. The Company’s allocation of income and distributions for the six months ended June 30, 2015 was not proportionate to its nominal ownership interest as a result of the achievement of specified investment return thresholds, as provided for in the joint venture agreement. |
Investments in Unconsolidated34
Investments in Unconsolidated Joint Ventures Investments in Unconsolidated Joint Ventures (Narrative) (Details) - Subsequent Event Type [Domain] $ in Thousands | Jun. 26, 2015USD ($)ft²yr | May. 08, 2015USD ($)ft²yr | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Enter into a Joint Venture Agreement | $ 14,989 | $ 47,767 | ||
Dock72 at Brooklyn Navy Yard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Rentable Area (in sf) | ft² | 670,000 | |||
Ownership Percentage | 50.00% | |||
Term of Lease Signed (in years) | yr | 20 | |||
Square Footage Of Signed Lease | ft² | 222,000 | |||
1265 Main Street [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Rentable Area (in sf) | ft² | 115,000 | |||
Ownership Percentage | 50.00% | |||
Term of Lease Signed (in years) | yr | 15 | |||
Portion of Building Leased (percentage) | 100.00% | |||
BNY Tower Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Non refundable option payment | $ 1,000 | |||
Company [Member] | Dock72 at Brooklyn Navy Yard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Enter into a Joint Venture Agreement | $ 9,100 | |||
Ownership Percentage | 50.00% | |||
Company [Member] | 1265 Main Street [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership Percentage | 50.00% | |||
joint venture partner [Member] | Dock72 at Brooklyn Navy Yard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Enter into a Joint Venture Agreement | $ 9,100 | |||
Ownership Percentage | 50.00% | |||
joint venture partner [Member] | 1265 Main Street [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Enter into a Joint Venture Agreement | $ 9,400 | |||
Ownership Percentage | 50.00% | |||
Minimum [Member] | Dock72 at Brooklyn Navy Yard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ground Lease Term (in years) | yr | 46 | |||
Minimum [Member] | BNY Tower Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Rentable Area (in sf) | ft² | 600,000 | |||
Maximum [Member] | Dock72 at Brooklyn Navy Yard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ground Lease Term (in years) | yr | 96 | |||
Maximum [Member] | BNY Tower Holdings [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Rentable Area (in sf) | ft² | 1,000,000 | |||
Maximum [Member] | Company [Member] | 1265 Main Street [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Payments to Enter into a Joint Venture Agreement | $ 9,400 |
Derivative Instruments and He35
Derivative Instruments and Hedging Activities (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)swapsyrmo | Jun. 30, 2014USD ($) | Aug. 07, 2015 | |
Debt Instrument [Line Items] | |||||
Amount of gain (loss) related to the effective portion recognized in other comprehensive income (loss) | $ 15,639 | $ 0 | $ 12,106 | $ 0 | |
Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Derivative, Net Liability Position, Aggregate Fair Value | 12,100 | 12,100 | |||
Assets Needed for Immediate Settlement, Aggregate Fair Value | 12,100 | 12,100 | |||
Notional Amount | $ 475,000 | 475,000 | |||
Amount of gain (loss) related to the effective portion recognized in other comprehensive income (loss) | $ 12,100 | ||||
Time period when the effects of the swaps may be reclassified into earnings (in months) | mo | 12 | ||||
Operating Partnership [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 8 | ||||
Term of anticipated mortgage loan (in years) | yr | 10 | ||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | ||||
Average Fixed Interest Rate | 2.458% | 2.458% | |||
Notional Amount | $ 325,000 | $ 325,000 | |||
767 Fifth Partners LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Ownership Percentage by the Company | 60.00% | ||||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 5 | ||||
Term of anticipated mortgage loan (in years) | yr | 10 | ||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | ||||
Average Fixed Interest Rate | 2.793% | 2.793% | |||
Notional Amount | $ 150,000 | $ 150,000 |
Derivative Instruments and He36
Derivative Instruments and Hedging Activities Derivative Instrument and Hedging Activities Notional Table (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative [Line Items] | ||||
Fair Value | $ 15,639 | $ 0 | $ 12,106 | $ 0 |
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | 475,000 | 475,000 | ||
Fair Value | 12,106 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 325,000 | $ 325,000 | ||
Strike Price | 2.458% | 2.458% | ||
Fair Value | $ 9,817 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.571% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 50,000 | $ 50,000 | ||
Strike Price | 2.571% | 2.571% | ||
Fair Value | $ 1,003 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.476% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 75,000 | $ 75,000 | ||
Strike Price | 2.476% | 2.476% | ||
Fair Value | $ 2,172 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.523% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 50,000 | $ 50,000 | ||
Strike Price | 2.523% | 2.523% | ||
Fair Value | $ 1,215 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.480% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 50,000 | $ 50,000 | ||
Strike Price | 2.48% | 2.48% | ||
Fair Value | $ 1,402 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.348%Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.348% | 2.348% | ||
Fair Value | $ 1,008 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.249% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.249% | 2.249% | ||
Fair Value | $ 1,208 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.242% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.242% | 2.242% | ||
Fair Value | $ 1,242 | |||
Operating Partnership [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.541% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.541% | 2.541% | ||
Fair Value | $ 567 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 150,000 | $ 150,000 | ||
Strike Price | 2.793% | 2.793% | ||
Fair Value | $ 2,289 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.683% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.683% | 2.683% | ||
Fair Value | $ 618 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.677% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 50,000 | $ 50,000 | ||
Strike Price | 2.677% | 2.677% | ||
Fair Value | $ 1,261 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.913% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.913% | 2.913% | ||
Fair Value | $ 123 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.857% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.857% | 2.857% | ||
Fair Value | $ 244 | |||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2.950% [Member] | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,000 | $ 25,000 | ||
Strike Price | 2.95% | 2.95% | ||
Fair Value | $ 43 |
Derivative Instruments and He37
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities Gain or Loss Recognized Related to Cash Flow hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Derivative [Line Items] | |||||
Amount of gain related to the effective portion recognized in other comprehensive income (loss) | $ 15,639 | $ 0 | $ 12,106 | $ 0 | |
Amount of loss related to the effective portion subsequently reclassified to earnings (1) | [1] | (628) | (624) | (1,255) | (1,253) |
Amount of gain (loss) related to the ineffective portion and amount excluded from effectiveness testing | $ 0 | $ 0 | $ 0 | $ 0 | |
[1] | (1) Consists of amounts from previous interest rate hedging programs. |
Derivative Instruments and He38
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||||
Accumulated Other Comprehensive Income or Loss [Roll Forward] | |||||||
Beginning Balance | $ (9,304) | $ (11,556) | |||||
Effective portion of interest rate contracts | $ 15,639 | $ 0 | 12,106 | 0 | |||
Amortization of interest rate contracts | [1] | 628 | 624 | 1,255 | [2] | 1,253 | [2] |
Other comprehensive income attributable to noncontrolling interests | (2,512) | (64) | (2,209) | (126) | |||
Ending Balance | $ 1,848 | $ (10,429) | $ 1,848 | $ (10,429) | |||
[1] | Amounts reclassified from comprehensive income primarily to interest expense within the Company's Consolidated Statements of Operations. | ||||||
[2] | (1) Consists of amounts from previous interest rate hedging programs. |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 2 Months Ended | 4 Months Ended | 6 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2009 | Mar. 11, 2015 | Dec. 31, 2014 | Jan. 10, 2014 | |
Commitments And Contingencies [Line Items] | |||||||
Letter of credit and performance obligations | $ 23.5 | $ 23.5 | |||||
Property insurance program per occurrence limits | 1,000 | 1,000 | |||||
Per occurrence limit for NBCR Coverage | 1,000 | ||||||
Value of program trigger | 100 | $ 100 | |||||
Coinsurance of program trigger | 15.00% | ||||||
Deductible in insurance as a percentage of the value of the affected property, San Francisco | 5.00% | ||||||
Per occurrence limit of the earthquake insurance which covers San Francisco region | $ 120 | 170 | |||||
Annual aggregate limit of the earthquake insurance which covers San Francisco region | $ 120 | 170 | |||||
Amount of earthquake insurance provided by IXP, LLC as direct insurer San Francisco | $ 20 | ||||||
Earthquake Coverage Included In Builders Risk Policy For Salesforce Tower | 60 | ||||||
Operating partnership guarantee to cover liabilities of IXP | 20 | 20 | |||||
767 Venture, LLC [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Maximum funding obligation | 29.5 | 29.5 | |||||
Property insurance program per occurrence limits | 1,625 | 1,625 | |||||
Lehman [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Bankruptcy claim, amount filed by general creditor | $ 45.3 | ||||||
Bankruptcy claim amount allowed by court to creditor | $ 45.2 | ||||||
Bankruptcy Claims, Amount of Claims Settled | $ 4.5 | $ 7.7 | |||||
Bankruptcy remaining claim amount allowed by court to creditor | $ 33 | 33 | |||||
200 Clarendon Street [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Guarantee Obligation Related To Tenant Re-Leasing Costs | 25.3 | ||||||
Fountain Square [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Guarantee Obligation Related To Tenant Re-Leasing Costs | 0.7 | ||||||
601 Lexington Avenue [Member] | |||||||
Commitments And Contingencies [Line Items] | |||||||
Coverage For Acts Of Terrorism Under TRIA Covered in Excess of Amount Covered by IXP | $ 250 |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) | Jun. 30, 2015shares |
Noncontrolling Interests [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Operating Partnership (OP) Units (in shares) | 16,192,518 |
Long-Term Incentive Plan (LTIP) Units (in shares) | 1,839,555 |
OPP Units 2012 [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Outperformance awards in LTIP Units (in shares) | 216,960 |
2013 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2013 MYLTIP (in shares) | 309,818 |
MYLTIP 2014 [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2014 MYLTIP (in shares) | 476,320 |
2015 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2015 MYLTIPS (in shares) | 368,415 |
Noncontrolling Interests (Redee
Noncontrolling Interests (Redeemable Preferred Units) (Narrative) (Details) - Series Four Preferred Units [Member] - Noncontrolling Interests [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 25, 2015 | May. 15, 2015 | Feb. 17, 2015 | Nov. 05, 2014 | Oct. 16, 2014 | Jul. 03, 2014 | May. 19, 2014 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||||
Preferred Units Liquidation Preference | $ 50 | |||||||
Series Four Preferred Units Released from Escrow (in shares) | 27,773 | 319,687 | ||||||
Series Four Preferred Units Redeemed (in shares) | 12,667 | |||||||
Redemption of Series Four Preferred Units | $ 0.6 | $ 1.4 | $ 16 | |||||
Distributions to Series Four Preferred Units (in dollars per share) | $ 0.25 | $ 0.25 | ||||||
Series Four Preferred Units Annual Dividend Payable Rate | 2.00% |
Noncontrolling Interests (Red42
Noncontrolling Interests (Redeemable Preferred Units) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity of Noncontrolling Interests [Roll Forward] | ||||
Beginning Balance | $ 633 | |||
Net Income | $ 3 | $ 320 | 6 | $ 939 |
Redemption of redeemable preferred units (Series Four Preferred Units) | 633 | 0 | ||
Ending Balance | 0 | 0 | ||
Redeemable Preferred Units [Member] | ||||
Activity of Noncontrolling Interests [Roll Forward] | ||||
Beginning Balance | 633 | 51,312 | ||
Net Income | 6 | 939 | ||
Distributions | (6) | (939) | ||
Conversion of redeemable preferred units (Series Two Preferred Units) to common units | (33,306) | |||
Redemption of redeemable preferred units (Series Four Preferred Units) | (633) | |||
Ending Balance | $ 0 | $ 18,006 | $ 0 | $ 18,006 |
(Common Units) (Narrative) (Det
(Common Units) (Narrative) (Details) - Class of Stock [Domain] $ / shares in Units, $ in Millions | Apr. 30, 2015$ / shares | Feb. 06, 2015USD ($)shares | Jan. 28, 2015$ / shares | Jun. 30, 2015USD ($)yr$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 17, 2015$ / shares |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Cumulative non-cash adjustment to the accretion of the changes in the redemption value of the noncontrolling interest | $ | $ 2.4 | |||||
OP Units and LTIP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Distributions made to OP and LTIP units per unit (in dollars per share) | $ 0.65 | |||||
Distribution declared to OP and LTIP units by Boston Properties, Inc. (in dollars per share) | $ 0.65 | |||||
MYLTIP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Distribution paid to outperformance awards, OPP Units and MYLTIP Units (in dollars per share) | $ 0.065 | |||||
Distribution declared to outperformance awards OPP Units by Boston Properties, Inc. (in dollars per share) | $ 0.065 | |||||
2012 OPP Units and MYLTIP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Distribution paid to outperformance awards, OPP Units and MYLTIP Units (in dollars per share) | 0.065 | |||||
OP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
OP Units for redemption (in shares) | shares | 321,700 | |||||
Redemption of OP units issued on conversion of LTIP Units (in shares) | shares | 57,701 | |||||
Outperformance Awards LTIP Units distribution as percentage of OP Unit distribution prior to measurement date | 10.00% | |||||
Distributions made to OP and LTIP units per unit (in dollars per share) | 0.65 | |||||
Restriction on redemption of OP Unit to Common Stock (in years) | yr | 1 | |||||
Redemption of OP Unit equivalence to Common Stock (in shares) | shares | 1 | |||||
Common units of operating partnership if converted value | $ | $ 2,200 | |||||
Closing price of common stock (in dollars per share) | $ 121.04 | |||||
OPP Units 2012 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Distributions made to OP and LTIP units per unit (in dollars per share) | $ 0.42 | |||||
2013 MYLTIP [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
2013 MYLTIP (in shares) | shares | 309,818 | |||||
MYLTIP 2014 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
2014 MYLTIP (in shares) | shares | 476,320 | |||||
2015 MYLTIP [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
2015 MYLTIPS (in shares) | shares | 368,415 | |||||
Quarter 4 2014 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Jan. 28, 2015 | |||||
Quarter 4 2014 [Member] | OP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Jan. 28, 2015 | |||||
Holders of record date | Dec. 31, 2014 | |||||
Quarter 1 2015 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Apr. 30, 2015 | |||||
Quarter 1 2015 [Member] | OP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Apr. 30, 2015 | |||||
Holders of record date | Mar. 31, 2015 | |||||
Quarter 2 2015 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Jul. 31, 2015 | |||||
Dividends payable, date declared | Jun. 17, 2015 | |||||
Quarter 2 2015 [Member] | OP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Dividend payable date | Jul. 31, 2015 | |||||
Holders of record date | Jun. 30, 2015 | |||||
Dividends payable, date declared | Jun. 17, 2015 | |||||
special dividend [Member] | OP Units [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Distributions made to OP and LTIP units per unit (in dollars per share) | $ 4.50 | |||||
OPP Units 2012 [Member] | ||||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||||||
Outperformance awards earned | $ | $ 32.1 | |||||
Potential maximum amount of Outperformance Awards earned (percent) | 80.00% | |||||
Potential Awards Earned | $ | $ 40 | |||||
2012 OPP Units Forfeited (in shares) | shares | 174,549 |
Noncontrolling Interests Noncon
Noncontrolling Interests Noncontrolling Redeemable Property Partnerships (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Noncontrolling Interest Redeemable Property Partnership [Abstract] | |||
Cumulative non-cash adjustment to the accretion of the changes in the redemption value of the noncontrolling interest | $ 2,400 | ||
Beginning Balance | $ 104,692 | 99,609 | |
Net Income (Loss) for Redeemable interest in Property Partnership | (24) | (240) | |
Distributions on Redeemable Property Partnership | (2,900) | (2,300) | |
Adjustment to Reflect Redeemable Interest at Redemption Value | 4,465 | 6,709 | [1] |
Ending Balance | $ 106,233 | $ 103,778 | |
[1] | (1) Includes an out-of-period adjustment totaling approximately $2.4 million (See Note 2). |
Noncontrolling Interests Redeem
Noncontrolling Interests Redeemable interest in property partnership (Narrative) (Details) - Oct. 04, 2012 - Fountain Square [Member] - USD ($) $ in Millions | Total |
Noncontrolling Interest [Line Items] | |
Aggregate purchase price | $ 385 |
Indebtedness assumed | $ 211.3 |
Ownership Percentage | 50.00% |
Payments to Acquire Businesses, Gross | $ 87 |
Ownership Percentage by the Company | 50.00% |
Future Fixed Price to Acquire Remaining Portion of Joint venture | $ 102 |
Fixed Price Option Expiration Date | Jan. 31, 2016 |
Noncontrolling Interests (Prope
Noncontrolling Interests (Property Partnerships) (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Noncontrolling Interest [Line Items] | ||
Property partnerships | $ 1,590,481 | $ 1,602,467 |
Noncontrolling Interests Proper
Noncontrolling Interests Property Partnerships (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Activity of Noncontrolling Interests [Roll Forward] | ||||
Beginning Balance | $ 1,602,467 | |||
Capital contributions | 1,089 | $ 1,675 | ||
Net income | $ 9,264 | $ 7,553 | 24,472 | 11,907 |
Accumulated other comprehensive income | (2,512) | (64) | (2,209) | (126) |
Ending Balance | 1,590,481 | 1,590,481 | ||
Property Partnerships Member | ||||
Activity of Noncontrolling Interests [Roll Forward] | ||||
Beginning Balance | 1,602,467 | 726,132 | ||
Capital contributions | 1,089 | 1,675 | ||
Net income | 20,031 | 5,438 | ||
Accumulated other comprehensive income | (916) | |||
Distributions | (34,022) | (12,149) | ||
Ending Balance | $ 1,590,481 | $ 721,096 | $ 1,590,481 | $ 721,096 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | May. 15, 2015$ / shares | Apr. 30, 2015$ / shares | Feb. 17, 2015$ / shares | Jan. 28, 2015$ / shares | Jun. 03, 2014USD ($)yr | Jun. 30, 2015USD ($)$ / sharesshares | Mar. 27, 2018$ / shares | Jun. 17, 2015$ / shares | Dec. 31, 2014USD ($)$ / sharesshares |
Class of Stock [Line Items] | |||||||||
Common stock, shares outstanding | shares | 153,473,931 | 153,113,945 | |||||||
Shares of its Common Stock in connection with the redemption of an equal number of OP Units (in shares) | shares | 321,700 | ||||||||
Shares of Common Stock upon the exercise of options to purchase Common Stock by certain employees (in shares) | shares | 11,447 | ||||||||
Dividend paid on common stock (in dollars per share) | $ 0.65 | $ 5.15 | |||||||
Dividends Payable, Amount Per Share | $ 0.65 | ||||||||
Common Stock, Value, Issued | $ | $ 1,535,000 | $ 1,531,000 | |||||||
New ATM program [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
At the market stock offering program, aggregate value of common stock | $ | $ 600,000,000 | ||||||||
At Market Stock Offering Program Maximum Length Of Sale In Years | yr | 3 | ||||||||
Common Stock, Value, Issued | $ | $ 0 | ||||||||
Quarter 4 2014 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | Jan. 28, 2015 | ||||||||
Dividend shareholder of record date | Dec. 31, 2014 | ||||||||
Quarter 1 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | Apr. 30, 2015 | ||||||||
Dividend shareholder of record date | Mar. 31, 2015 | ||||||||
Quarter 2 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | Jul. 31, 2015 | ||||||||
Dividend shareholder of record date | Jun. 30, 2015 | ||||||||
Dividends payable, date declared | Jun. 17, 2015 | ||||||||
Series B Cumulative Redeemable Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend paid on common stock (in dollars per share) | $ 32.8125 | $ 32.8125 | |||||||
Dividends Payable, Amount Per Share | $ 32.8125 | ||||||||
Series B, Shares Outstanding (in shares) | shares | 80,000 | 80,000 | |||||||
Series B, Dividend Rate, Percentage | 5.25% | ||||||||
Series B, Liquidation Preference Per Share (dollars per share) | $ 2,500 | $ 2,500 | |||||||
Ratio of depository shares to shares of Series B Preferred Stock | 0.01 | ||||||||
Series B Cumulative Redeemable Preferred Stock [Member] | Quarter 1 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | Feb. 17, 2015 | ||||||||
Series B Cumulative Redeemable Preferred Stock [Member] | Quarter 2 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | May 15, 2015 | ||||||||
Series B Cumulative Redeemable Preferred Stock [Member] | Quarter 3 2015 [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Dividend payable date | Aug. 17, 2015 | ||||||||
Dividend shareholder of record date | Aug. 5, 2015 | ||||||||
Dividends payable, date declared | Jun. 17, 2015 | ||||||||
Depository shares of Series B Cumulative Redeemable Preferred [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Series B, Shares Outstanding (in shares) | shares | 8,000,000 | ||||||||
Series B, Liquidation Preference Per Share (dollars per share) | $ 25 | $ 25 | |||||||
Subsequent Event [Member] | Series B Cumulative Redeemable Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Series B, Liquidation Preference Per Share (dollars per share) | $ 2,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Basic Earnings: | ||||
Net income attributable to Boston Properties, Inc. common shareholders | $ 79,460 | $ 76,527 | $ 250,694 | $ 130,594 |
Net income attributable to Boston Properties Inc. common shareholders (in shares) | 153,450 | 153,078 | 153,341 | 153,054 |
Net income attributable to Boston Properties Inc. common shareholders (in dollars per share) | $ 0.52 | $ 0.50 | $ 1.63 | $ 0.85 |
Allocation of undistributed earnings to participating securities | $ (141) | |||
Allocation of undistributed earnings to participating securities (in shares) | 0 | |||
Allocation of undistributed earnings to participating securities(per share) | $ 0 | |||
Net income attributable to Boston Properties, Inc. common shareholders | $ 250,553 | |||
Net income attributable to Boston Properties Inc. common shareholders (in shares) | 153,341 | |||
Net income attributable to Boston Properties Inc.. common shareholders (in dollars per share) | $ 1.63 | |||
Effect of Dilutive Securities: | ||||
Stock Based Compensation, Income (Numerator) | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Based Compensation, Shares (Denominator) | 365 | 160 | 504 | 149 |
Stock Based Compensation, Per Share Amount (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Diluted Earnings: | ||||
Diluted Earnings: Net income, Income (Numerator) | $ 79,460 | $ 76,527 | $ 250,553 | $ 130,594 |
Diluted Earnings: Net income, Shares (Denominator) | 153,815 | 153,238 | 153,845 | 153,203 |
Diluted Earnings: Net income, Per Share Amount (in dollars per share) | $ 0.52 | $ 0.50 | $ 1.63 | $ 0.85 |
Stock Option and Incentive Pl50
Stock Option and Incentive Plan (Restricted Stock) (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)VestingInstallments$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | shares | 153,552,831 | 153,552,831 | 153,192,845 | ||
Stock based Compensation Expense | $ 5,100 | $ 6,200 | $ 15,200 | $ 16,000 | |
Common Stock, Value, Issued | $ 1,535 | $ 1,535 | $ 1,531 | ||
Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | shares | 34,150 | 34,150 | |||
Employee and director payment per share (in dollars per share) | $ / shares | $ 0.01 | ||||
Common Stock, Value, Issued | $ 4,800 | $ 4,800 | |||
Employee's weighted average cost per share (in dollars per share) | $ / shares | $ 140.88 | $ 140.88 | |||
LTIP Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LTIP units issued (in shares) | shares | 190,563 | 190,563 | |||
Value of LTIP units issued | $ 13,500 | ||||
Per unit fair value weighted-average (in dollars per share) | $ / shares | $ 128.94 | $ 128.94 | |||
Expected life assumed to calculate per unit fair value per LTIP unit (years) | 5 years 8 months 12 days | ||||
Risk-free rate | 1.47% | ||||
Expected price volatility | 26.00% | ||||
2015 MYLTIP [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
MYLTIP units issued (in shares) | shares | 375,000 | 375,000 | |||
LTIPs And Restricted Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting annual installments | VestingInstallments | 4 | ||||
Unrecognized compensation expenses | $ 23,300 | $ 23,300 | |||
LTIPs and 2015 MYLTIP Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee and director payment per share (in dollars per share) | $ / shares | $ 0.25 | ||||
Unvested 2012 OPP Units and 2013, 2014 and 2015 MYLTIPS [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expenses | $ 24,100 | $ 24,100 | |||
Weighted-average period (years) | 2 years 8 months 12 days | ||||
Non-executive Chairman of the Board of Directors [Member] | LTIP Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
LTIP units issued (in shares) | shares | 85,962 | 85,962 |
Stock Option and Incentive Pl51
Stock Option and Incentive Plan Stock Option and Incentive Plan (Narrative) (Details) | Feb. 06, 2015USD ($)shares | Jan. 21, 2015USD ($)yrtiersindices |
2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TRS Measurement, Years | yr | 3 | |
Indices Used to Compare TRS | indices | 2 | |
Number of Tiers | tiers | 3 | |
Percentage of annualized TRS for Reduction of Earned Awards | 0.00% | |
Percentage to Cause Some Awards to be Earned Even if on a Relative Basis it Would Not Result in any Earned Awards | 12.00% | |
Distributions Percent Before Measurement Date | 10.00% | |
Value of MYLTIP Awards | $ 15,700,000 | |
MYLTIP Value Amortized Into Earnings, Years | yr | 4 | |
OPP Units 2012 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential Awards Earned | $ 40,000,000 | |
Outperformance awards earned | $ 32,100,000 | |
Potential maximum amount of Outperformance Awards earned (percent) | 80.00% | |
2012 OPP Units Forfeited (in shares) | shares | 174,549 | |
Cohen & Steers Realty Majors Portfolio Index [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Percentage of Index Used to Compare to TRS | 50.00% | |
NAREIT Office Index adjusted [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Percentage of Index Used to Compare to TRS | 50.00% | |
Target [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of Each Tier | $ 16,300,000 | |
Threshold [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of Each Tier | 8,200,000 | |
High [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amount of Each Tier | 40,800,000 | |
Maximum [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential Awards Earned | 40,800,000 | |
Minimum [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential Awards Earned | $ 0 | |
MYLTIP Vesting 2018 [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Percentage | 50.00% | |
Vesting Date | Feb. 4, 2018 | |
MYLTIP vesting 2019 [Member] | 2015 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting Percentage | 50.00% | |
Vesting Date | Feb. 4, 2019 |
Segment Information (Schedule O
Segment Information (Schedule Of Segment Reporting By Geographic Area And Property Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Rental Revenue: Class A Office | $ 581,596 | $ 548,699 | $ 1,163,984 | $ 1,088,605 |
Rental Revenue: Office/Technical | 14,549 | 15,924 | 29,370 | 31,621 |
Rental Revenue: Residential | 3,811 | 6,298 | 10,665 | 11,980 |
Rental Revenue: Hotel | 13,403 | 12,367 | 22,488 | 20,560 |
Total revenue | $ 613,359 | $ 583,288 | $ 1,226,507 | $ 1,152,766 |
Rental Revenue: % of Grand Totals | 100.00% | 100.00% | 100.00% | 100.00% |
Rental Expenses: Class A Office | $ 209,131 | $ 194,543 | $ 422,846 | $ 393,064 |
Rental Expenses: Office/Technical | 3,802 | 4,167 | 7,891 | 8,272 |
Rental Expenses: Residential | 1,531 | 3,936 | 5,077 | 7,698 |
Rental Expenses: Hotel | 8,495 | 7,315 | 16,071 | 14,112 |
Rental Expenses: Total | $ 222,959 | $ 209,961 | $ 451,885 | $ 423,146 |
Rental Expenses: % Of Grand Totals | 100.00% | 100.00% | 100.00% | 100.00% |
Net operating Income | $ 390,400 | $ 373,327 | $ 774,622 | $ 729,620 |
Net operating Income: % of Grand Totals | 100.00% | 100.00% | 100.00% | 100.00% |
Boston [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental Revenue: Class A Office | $ 174,894 | $ 173,128 | $ 344,801 | $ 344,070 |
Rental Revenue: Office/Technical | 6,042 | 5,912 | 12,162 | 11,732 |
Rental Revenue: Residential | 1,131 | 1,089 | 2,309 | 2,252 |
Rental Revenue: Hotel | 13,403 | 12,367 | 22,488 | 20,560 |
Total revenue | $ 195,470 | $ 192,496 | $ 381,760 | $ 378,614 |
Rental Revenue: % of Grand Totals | 31.87% | 33.00% | 31.13% | 32.84% |
Rental Expenses: Class A Office | $ 67,874 | $ 65,818 | $ 142,339 | $ 137,216 |
Rental Expenses: Office/Technical | 1,779 | 1,736 | 3,765 | 3,425 |
Rental Expenses: Residential | 511 | 544 | 1,020 | 992 |
Rental Expenses: Hotel | 8,495 | 7,315 | 16,071 | 14,112 |
Rental Expenses: Total | $ 78,659 | $ 75,413 | $ 163,195 | $ 155,745 |
Rental Expenses: % Of Grand Totals | 35.28% | 35.92% | 36.12% | 36.81% |
Net operating Income | $ 116,811 | $ 117,083 | $ 218,565 | $ 222,869 |
Net operating Income: % of Grand Totals | 29.92% | 31.36% | 28.22% | 30.55% |
New York [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental Revenue: Class A Office | $ 246,432 | $ 223,899 | $ 499,530 | $ 441,207 |
Rental Revenue: Office/Technical | 0 | 0 | 0 | 0 |
Rental Revenue: Residential | 0 | 0 | 0 | 0 |
Rental Revenue: Hotel | 0 | 0 | 0 | 0 |
Total revenue | $ 246,432 | $ 223,899 | $ 499,530 | $ 441,207 |
Rental Revenue: % of Grand Totals | 40.18% | 38.39% | 40.73% | 38.28% |
Rental Expenses: Class A Office | $ 85,661 | $ 74,962 | $ 170,722 | $ 149,333 |
Rental Expenses: Office/Technical | 0 | 0 | 0 | 0 |
Rental Expenses: Residential | 0 | 0 | 0 | 0 |
Rental Expenses: Hotel | 0 | 0 | 0 | 0 |
Rental Expenses: Total | $ 85,661 | $ 74,962 | $ 170,722 | $ 149,333 |
Rental Expenses: % Of Grand Totals | 38.42% | 35.70% | 37.78% | 35.29% |
Net operating Income | $ 160,771 | $ 148,937 | $ 328,808 | $ 291,874 |
Net operating Income: % of Grand Totals | 41.18% | 39.89% | 42.45% | 40.00% |
San Francisco [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental Revenue: Class A Office | $ 68,781 | $ 57,450 | $ 135,033 | $ 112,058 |
Rental Revenue: Office/Technical | 5,554 | 6,341 | 11,213 | 12,558 |
Rental Revenue: Residential | 0 | 0 | 0 | 0 |
Rental Revenue: Hotel | 0 | 0 | 0 | 0 |
Total revenue | $ 74,335 | $ 63,791 | $ 146,246 | $ 124,616 |
Rental Revenue: % of Grand Totals | 12.12% | 10.94% | 11.92% | 10.81% |
Rental Expenses: Class A Office | $ 23,416 | $ 21,282 | $ 45,325 | $ 40,595 |
Rental Expenses: Office/Technical | 999 | 1,308 | 1,911 | 2,522 |
Rental Expenses: Residential | 0 | 0 | 0 | 0 |
Rental Expenses: Hotel | 0 | 0 | 0 | 0 |
Rental Expenses: Total | $ 24,415 | $ 22,590 | $ 47,236 | $ 43,117 |
Rental Expenses: % Of Grand Totals | 10.95% | 10.76% | 10.45% | 10.19% |
Net operating Income | $ 49,920 | $ 41,201 | $ 99,010 | $ 81,499 |
Net operating Income: % of Grand Totals | 12.79% | 11.04% | 12.78% | 11.17% |
Washington, DC [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Rental Revenue: Class A Office | $ 91,489 | $ 94,222 | $ 184,620 | $ 191,270 |
Rental Revenue: Office/Technical | 2,953 | 3,671 | 5,995 | 7,331 |
Rental Revenue: Residential | 2,680 | 5,209 | 8,356 | 9,728 |
Rental Revenue: Hotel | 0 | 0 | 0 | 0 |
Total revenue | $ 97,122 | $ 103,102 | $ 198,971 | $ 208,329 |
Rental Revenue: % of Grand Totals | 15.83% | 17.67% | 16.22% | 18.07% |
Rental Expenses: Class A Office | $ 32,180 | $ 32,481 | $ 64,460 | $ 65,920 |
Rental Expenses: Office/Technical | 1,024 | 1,123 | 2,215 | 2,325 |
Rental Expenses: Residential | 1,020 | 3,392 | 4,057 | 6,706 |
Rental Expenses: Hotel | 0 | 0 | 0 | 0 |
Rental Expenses: Total | $ 34,224 | $ 36,996 | $ 70,732 | $ 74,951 |
Rental Expenses: % Of Grand Totals | 15.35% | 17.62% | 15.65% | 17.71% |
Net operating Income | $ 62,898 | $ 66,106 | $ 128,239 | $ 133,378 |
Net operating Income: % of Grand Totals | 16.11% | 17.71% | 16.55% | 18.28% |
Segment Information (Schedule53
Segment Information (Schedule Of Reconciliation Of Net Operating Income To Net Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net Operating Income | $ 204,926 | $ 201,273 | $ 411,135 | $ 378,170 |
Development and management services income | 4,862 | 6,506 | 10,190 | 11,722 |
Income from unconsolidated joint ventures | 3,078 | 2,834 | 17,912 | 5,650 |
Interest and other income | 1,293 | 2,109 | 2,700 | 3,420 |
Gains (losses) from investments in securities | (24) | 662 | 369 | 948 |
General and administrative expense | 22,284 | 23,271 | 51,075 | 53,176 |
Transaction costs | 208 | 661 | 535 | 1,098 |
Depreciation and amortization expense | 167,844 | 154,628 | 322,067 | 308,898 |
Interest expense | 108,534 | 110,977 | 217,291 | 224,531 |
Noncontrolling interest in property partnerships | 9,264 | 7,553 | 24,472 | 11,907 |
Noncontrolling interest-redeemable preferred units of the Operating Partnership | 3 | 320 | 6 | 939 |
Noncontrolling interest-common units of the Operating Partnership | 9,394 | 8,883 | 29,530 | 15,010 |
Preferred dividends | 2,618 | 2,618 | 5,207 | 5,207 |
Net income attributable to Boston Properties, Inc. common shareholders | 79,460 | 76,527 | 250,694 | 130,594 |
Business Intersegment, Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net Operating Income | 390,400 | 373,327 | 774,622 | 729,620 |
Development and management services income | 4,862 | 6,506 | 10,190 | 11,722 |
Income from unconsolidated joint ventures | 3,078 | 2,834 | 17,912 | 5,650 |
Interest and other income | 1,293 | 2,109 | 2,700 | 3,420 |
Gains (losses) from investments in securities | (24) | 662 | 369 | 948 |
Gain on sales of real estate | 0 | 0 | 95,084 | 0 |
General and administrative expense | 22,284 | 23,271 | 51,075 | 53,176 |
Transaction costs | 208 | 661 | 535 | 1,098 |
Depreciation and amortization expense | 167,844 | 154,628 | 322,067 | 308,898 |
Interest expense | 108,534 | 110,977 | 217,291 | 224,531 |
Noncontrolling interest in property partnerships | 9,264 | 7,553 | 24,472 | 11,907 |
Noncontrolling interest-redeemable preferred units of the Operating Partnership | 3 | 320 | 6 | 939 |
Noncontrolling interest-common units of the Operating Partnership | 9,394 | 8,883 | 29,530 | 15,010 |
Preferred dividends | 2,618 | 2,618 | 5,207 | 5,207 |
Net income attributable to Boston Properties, Inc. common shareholders | $ 79,460 | $ 76,527 | $ 250,694 | $ 130,594 |
Subsequent Events subsequent Ev
Subsequent Events subsequent Events (Details) $ in Thousands | Aug. 06, 2015USD ($) | Jul. 31, 2015USD ($)yr | Oct. 04, 2012USD ($) | Aug. 07, 2015USD ($)swapsyr | Jun. 30, 2015USD ($)swapsyr | Jul. 29, 2015USD ($)ft² |
Interest Rate Swap [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Notional Amount | $ 475,000 | |||||
767 Fifth Partners LLC [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ownership Percentage by the Company | 60.00% | |||||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 5 | |||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | |||||
Average Fixed Interest Rate | 2.793% | |||||
Notional Amount | $ 150,000 | |||||
767 Fifth Partners LLC [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 4 | |||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | |||||
Average Fixed Interest Rate | 2.813% | |||||
Notional Amount | $ 100,000 | |||||
Operating Partnership [Member] | Interest Rate Swap [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 8 | |||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | |||||
Average Fixed Interest Rate | 2.458% | |||||
Notional Amount | $ 325,000 | |||||
Operating Partnership [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Number of interest rate swap agreements entered into (swap contracts) | swaps | 1 | |||||
Maximum period of hedging exposure to the variability in future cash flows for forecasted transactions (in years) | yr | 10 | |||||
Average Fixed Interest Rate | 2.532% | |||||
Notional Amount | $ 25,000 | |||||
200 Clarendon Street [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Non refundable option payment | $ 5,000 | |||||
Ground Lease Term (in years) | yr | 99 | |||||
Previous ground lease term remaining (in years) | yr | 45 | |||||
Improvements to the Station that will be credited against ground lease obligation | $ 32,000 | |||||
505 9th Street [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net Rentable Area (in sf) | ft² | 322,000 | |||||
Ownership Percentage by the Company | 50.00% | |||||
Sale Price Of Sold Property | $ 318,000 | |||||
Mortgage loan assumed by buyer | $ 117,000 | |||||
Fountain Square [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ownership Percentage by the Company | 50.00% | |||||
Future Fixed Price to Acquire Remaining Portion of Joint venture | $ 102,000 | |||||
Fountain Square [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Ownership Percentage by the Company | 50.00% | |||||
Future Fixed Price to Acquire Remaining Portion of Joint venture | $ 100,900 |