| Segment Reporting Disclosure [Text Block] | 12. Segment Information The following tables present reconciliations of Net Income Attributable to Boston Properties, Inc. Common Shareholders to the Company’s share of Net Operating Income and Net Income Attributable to Boston Properties Limited Partnership Common Unitholders to the Company’s share of Net Operating Income for the three and nine months ended September 30, 2020 and 2019. Boston Properties, Inc. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) Net income attributable to Boston Properties, Inc. common shareholders $ 89,854 $ 107,771 $ 854,541 $ 370,200 Add: Preferred dividends 2,625 2,625 7,875 7,875 Noncontrolling interest—common units of the Operating Partnership 10,020 12,504 97,090 43,133 Noncontrolling interests in property partnerships 15,561 18,470 34,280 54,782 Interest expense 110,993 106,471 319,726 309,837 Loss from early extinguishment of debt — 28,010 — 28,010 Impairment loss — — — 24,038 Net operating income from unconsolidated joint ventures 24,938 23,065 81,607 73,129 Depreciation and amortization expense 166,456 165,862 515,738 507,867 Transaction costs 307 538 1,254 1,415 Payroll and related costs from management services contracts 2,896 2,429 8,617 8,227 General and administrative expense 27,862 31,147 102,059 107,980 Less: Net operating income attributable to noncontrolling interests in property partnerships 42,160 46,249 122,248 138,896 Gains from investments in securities 1,858 106 965 4,240 Interest and other income (loss) (45) 7,178 4,277 14,546 Gains (losses) on sales of real estate (209) (15) 613,723 766 Income (loss) from unconsolidated joint ventures (6,873) (649) (5,410) 47,528 Direct reimbursements of payroll and related costs from management services contracts 2,896 2,429 8,617 8,227 Development and management services revenue 7,281 10,303 23,285 29,566 Company’s share of Net Operating Income $ 404,444 $ 433,291 $ 1,255,082 $ 1,292,724 Boston Properties Limited Partnership Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 (in thousands) Net income attributable to Boston Properties Limited Partnership common unitholders $ 101,624 $ 122,117 $ 969,932 $ 421,214 Add: Preferred distributions 2,625 2,625 7,875 7,875 Noncontrolling interests in property partnerships 15,561 18,470 34,280 54,782 Interest expense 110,993 106,471 319,726 309,837 Loss from early extinguishment of debt — 28,010 — 28,010 Impairment loss — — — 22,272 Net operating income from unconsolidated joint ventures 24,938 23,065 81,607 73,129 Depreciation and amortization expense 164,706 164,020 510,400 501,901 Transaction costs 307 538 1,254 1,415 Payroll and related costs from management services contracts 2,896 2,429 8,617 8,227 General and administrative expense 27,862 31,147 102,059 107,980 Less: Net operating income attributable to noncontrolling interests in property partnerships 42,160 46,249 122,248 138,896 Gains from investments in securities 1,858 106 965 4,240 Interest and other income (loss) (45) 7,178 4,277 14,546 Gains (losses) on sales of real estate (209) (15) 626,686 915 Income (loss) from unconsolidated joint ventures (6,873) (649) (5,410) 47,528 Direct reimbursements of payroll and related costs from management services contracts 2,896 2,429 8,617 8,227 Development and management services revenue 7,281 10,303 23,285 29,566 Company’s share of Net Operating Income $ 404,444 $ 433,291 $ 1,255,082 $ 1,292,724 Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders, as applicable, the most directly comparable GAAP financial measures, plus (1) preferred dividends/distributions, net income attributable to noncontrolling interests, interest expense, loss from early extinguishment of debt, impairment loss, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) gains from investments in securities, interest and other income (loss), gains (losses) on sales of real estate, income (loss) from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue. The Company believes NOI is useful to investors as a performance measure and believes it provides useful information to investors regarding its results of operations and financial condition because, when compared across periods, it reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense, because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently. The Company’s internal reporting utilizes its share of NOI, which includes its share of NOI from consolidated and unconsolidated joint ventures, which is a non-GAAP financial measure that is calculated as the consolidated amount, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s economic percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ economic percentage ownership interests and, in some cases, after priority allocations, income allocation to private REIT shareholders and their share of fees due to the Company). The Company’s share of NOI from unconsolidated joint ventures does not include its share of gains on sale of real estate from unconsolidated joint ventures, which is included within Income From Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations. Management utilizes its share of NOI in assessing its performance as the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, the presentations of the Company’s share of NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Preferred dividends/distributions, interest expense, loss from early extinguishment of debt, impairment loss, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts, corporate general and administrative expense, gains from investments in securities, interest and other income (loss), gains (losses) on sales of real estate, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue are not included in NOI and are provided as reconciling items to the Company’s reconciliations of its share of NOI to net income attributable to common shareholders/unitholders. The Company’s segments are based on the Company’s method of internal reporting which classifies its operations by geographic area. The Company’s segments by geographic area are Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company also presents information for each segment by property type, including Office, Residential and Hotel. Included within the Office property type are commercial office and retail leases, as well as parking revenue. Upon the adoption of ASC 842, any write-off for bad debt, including accrued rent, will be recorded as a reduction to lease revenue. As a result of COVID-19, during the three and nine months ended September 30, 2020, the Company wrote off approximately $4.1 million and $41.5 million, respectively, related to accrued rent balances and approximately $3.4 million and $22.3 million, respectively, related to accounts receivable balances. The write-offs were for tenants, primarily in the retail sector, that either terminated their leases or that the Company considered their accrued rent and/or accounts receivable balances no longer probable of collection. In addition, parking and other revenue for the three and nine months ended September 30, 2020 decreased by approximately $9.3 million and $22.0 million, respectively, compared to 2019. These decreases were primarily in transient and monthly parking revenue. The degree to which the Company’s commercial and retail tenants’ and parking operators’ businesses are, or will continue to be, negatively impacted by COVID-19, including by measures intended to reduce its spread, such as mandatory business closures and “stay-at-home” orders, could result in a reduction in the Company’s cash flows or require that the Company write off additional accrued rent and/or accounts receivable balances, and this could have a material adverse effect on lease revenue and thus the results of the Company’s Office property type. The Boston Marriott Cambridge closed in March 2020 due to COVID-19 and did not re-open until October 2, 2020. The hotel is operating at a monthly deficit. The closing of the hotel for more than two fiscal quarters, weak demand and low occupancy since its re-opening, have had, and are expected to continue to have, a material adverse effect on the hotel’s operations and thus the results of the Company’s Hotel property type. Information by geographic area and property type (dollars in thousands): For the three months ended September 30, 2020: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 225,652 $ — $ 239,535 $ 128,165 $ 79,931 $ 673,283 Residential 3,043 — — 23 6,652 9,718 Hotel 90 — — — — 90 Total 228,785 — 239,535 128,188 86,583 683,091 % of Grand Totals 33.48 % — % 35.07 % 18.77 % 12.68 % 100.00 % Rental Expenses: Office 81,890 — 97,904 41,518 31,994 253,306 Residential 1,350 — — 740 2,865 4,955 Hotel 3,164 — — — — 3,164 Total 86,404 — 97,904 42,258 34,859 261,425 % of Grand Totals 33.05 % — % 37.46 % 16.16 % 13.33 % 100.00 % Net operating income $ 142,381 $ — $ 141,631 $ 85,930 $ 51,724 $ 421,666 % of Grand Totals 33.77 % — % 33.58 % 20.38 % 12.27 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,228) — (31,932) — — (42,160) Add: Company’s share of net operating income from unconsolidated joint ventures 2,764 11,953 539 4,098 5,584 24,938 Company’s share of net operating income $ 134,917 $ 11,953 $ 110,238 $ 90,028 $ 57,308 $ 404,444 % of Grand Totals 33.35 % 2.96 % 27.26 % 22.26 % 14.17 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the three months ended September 30, 2019: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 224,345 $ — $ 251,806 $ 136,290 $ 95,370 $ 707,811 Residential 3,809 — — — 6,187 9,996 Hotel 13,014 — — — — 13,014 Total 241,168 — 251,806 136,290 101,557 730,821 % of Grand Totals 33.00 % — % 34.45 % 18.65 % 13.90 % 100.00 % Rental Expenses: Office 81,278 — 98,698 45,900 35,716 261,592 Residential 1,244 — — — 2,767 4,011 Hotel 8,743 — — — — 8,743 Total 91,265 — 98,698 45,900 38,483 274,346 % of Grand Totals 33.27 % — % 35.97 % 16.73 % 14.03 % 100.00 % Net operating income $ 149,903 $ — $ 153,108 $ 90,390 $ 63,074 $ 456,475 % of Grand Totals 32.84 % — % 33.54 % 19.80 % 13.82 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,379) — (35,870) — — (46,249) Add: Company’s share of net operating income from unconsolidated joint ventures 1,686 14,702 (27) — 6,704 23,065 Company’s share of net operating income $ 141,210 $ 14,702 $ 117,211 $ 90,390 $ 69,778 $ 433,291 % of Grand Totals 32.60 % 3.39 % 27.05 % 20.86 % 16.10 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the nine months ended September 30, 2020: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 683,501 $ — $ 699,063 $ 393,137 $ 256,904 $ 2,032,605 Residential 10,512 — — 23 18,541 29,076 Hotel 7,014 — — — — 7,014 Total 701,027 — 699,063 393,160 275,445 2,068,695 % of Grand Totals 33.89 % — % 33.79 % 19.01 % 13.31 % 100.00 % Rental Expenses: Office 240,129 — 285,411 123,168 99,322 748,030 Residential 3,925 — — 740 8,319 12,984 Hotel 11,958 — — — — 11,958 Total 256,012 — 285,411 123,908 107,641 772,972 % of Grand Totals 33.12 % — % 36.92 % 16.03 % 13.93 % 100.00 % Net operating income $ 445,015 $ — $ 413,652 $ 269,252 $ 167,804 $ 1,295,723 % of Grand Totals 34.35 % — % 31.92 % 20.78 % 12.95 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (31,467) — (90,781) — — (122,248) Add: Company’s share of net operating income from unconsolidated joint ventures 8,490 42,909 2,110 11,384 16,714 81,607 Company’s share of net operating income $ 422,038 $ 42,909 $ 324,981 $ 280,636 $ 184,518 $ 1,255,082 % of Grand Totals 33.63 % 3.42 % 25.89 % 22.36 % 14.70 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. For the nine months ended September 30, 2019: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 659,717 $ — $ 761,993 $ 391,851 $ 288,201 $ 2,101,762 Residential 9,732 — — — 16,978 26,710 Hotel 36,796 — — — — 36,796 Total 706,245 — 761,993 391,851 305,179 2,165,268 % of Grand Totals 32.62 % — % 35.19 % 18.10 % 14.09 % 100.00 % Rental Expenses: Office 238,438 — 292,478 130,733 107,535 769,184 Residential 3,729 — — — 8,178 11,907 Hotel 25,686 — — — — 25,686 Total 267,853 — 292,478 130,733 115,713 806,777 % of Grand Totals 33.20 % — % 36.26 % 16.20 % 14.34 % 100.00 % Net operating income $ 438,392 $ — $ 469,515 $ 261,118 $ 189,466 $ 1,358,491 % of Grand Totals 32.27 % — % 34.56 % 19.22 % 13.95 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (29,783) — (108,665) (448) — (138,896) Add: Company’s share of net operating income from unconsolidated joint ventures 3,276 45,864 3,455 — 20,534 73,129 Company’s share of net operating income $ 411,885 $ 45,864 $ 364,305 $ 260,670 $ 210,000 $ 1,292,724 % of Grand Totals 31.87 % 3.55 % 28.18 % 20.16 % 16.24 % 100.00 % _______________ (1) Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations. |
