| 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, 2021 and 2020. Boston Properties, Inc. Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 (in thousands) Net income attributable to Boston Properties, Inc. common shareholders $ 108,297 $ 89,854 $ 311,680 $ 854,541 Add: Preferred stock redemption charge — — 6,412 — Preferred dividends — 2,625 2,560 7,875 Noncontrolling interest—common units of the Operating Partnership 11,982 10,020 35,393 97,090 Noncontrolling interests in property partnerships 18,971 15,561 52,602 34,280 Interest expense 105,794 110,993 320,015 319,726 Losses from early extinguishment of debt — — 898 — Loss from unconsolidated joint ventures 5,597 6,873 1,745 5,410 Net operating income from unconsolidated joint ventures 24,266 24,938 74,478 81,607 Depreciation and amortization expense 179,412 166,456 539,815 515,738 Transaction costs 1,888 307 2,970 1,254 Payroll and related costs from management services contracts 3,006 2,896 9,166 8,617 General and administrative expense 34,560 27,862 117,924 102,059 Less: Net operating income attributable to noncontrolling interests in property partnerships 47,800 42,160 138,463 122,248 Gains (losses) from investments in securities (190) 1,858 3,744 965 Interest and other income (loss) 1,520 (45) 4,140 4,277 Gains (losses) on sales of real estate 348 (209) 8,104 613,723 Direct reimbursements of payroll and related costs from management services contracts 3,006 2,896 9,166 8,617 Development and management services revenue 6,094 7,281 20,181 23,285 Company’s share of Net Operating Income $ 435,195 $ 404,444 $ 1,291,860 $ 1,255,082 Boston Properties Limited Partnership Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 (in thousands) Net income attributable to Boston Properties Limited Partnership common unitholders $ 122,014 $ 101,624 $ 353,633 $ 969,932 Add: Preferred unit redemption charge — — 6,412 — Preferred distributions — 2,625 2,560 7,875 Noncontrolling interests in property partnerships 18,971 15,561 52,602 34,280 Interest expense 105,794 110,993 320,015 319,726 Losses from early extinguishment of debt — — 898 — Loss from unconsolidated joint ventures 5,597 6,873 1,745 5,410 Net operating income from unconsolidated joint ventures 24,266 24,938 74,478 81,607 Depreciation and amortization expense 177,677 164,706 533,255 510,400 Transaction costs 1,888 307 2,970 1,254 Payroll and related costs from management services contracts 3,006 2,896 9,166 8,617 General and administrative expense 34,560 27,862 117,924 102,059 Less: Net operating income attributable to noncontrolling interests in property partnerships 47,800 42,160 138,463 122,248 Gains (losses) from investments in securities (190) 1,858 3,744 965 Interest and other income (loss) 1,520 (45) 4,140 4,277 Gains (losses) on sales of real estate 348 (209) 8,104 626,686 Direct reimbursements of payroll and related costs from management services contracts 3,006 2,896 9,166 8,617 Development and management services revenue 6,094 7,281 20,181 23,285 Company’s share of Net Operating Income $ 435,195 $ 404,444 $ 1,291,860 $ 1,255,082 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 stock/unit redemption charge, preferred dividends/distributions, net income attributable to noncontrolling interests, interest expense, losses from early extinguishment of debt, loss from unconsolidated joint ventures, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) gains (losses) 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. 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 sales of real estate from unconsolidated joint ventures and gain on sale of investment from unconsolidated joint ventures, both of which are included within Loss From Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations. Management utilizes its share of NOI in assessing its performance as the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, the presentations of the Company’s share of NOI should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Preferred stock/unit redemption charge, preferred dividends/distributions, interest expense, losses from early extinguishment of debt, loss from unconsolidated joint ventures, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts, corporate general and administrative expense, gains (losses) 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, Seattle and Washington, DC. On September 1, 2021, the Company invested into a joint venture that acquired Safeco Plaza located in Seattle, Washington (See Note 5). As such, the Seattle region was identified as a segment during the third quarter of 2021. 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. Any write-off for bad debt, including accrued rent, will be recorded as a reduction to lease revenue. During the nine months ended September 30, 2021, the Company wrote off approximately $1.3 million related to accrued rent, net balances and accounts receivable, net balances. There were no write-offs related to accrued rent, net balances and accounts receivable, net balances for the three months ended September 30, 2021. During the three and nine months ended September 30, 2020, the Company wrote off approximately $7.5 million and $63.8 million, respectively, related to accrued rent, net balances and accounts receivable, net balances. The write-offs were for tenants, primarily in the retail sector, that either terminated their leases or for which the Company considered their accrued rent and/or accounts receivable balances were no longer probable of collection. In addition, parking and other revenue for the three months ended September 30, 2021 increased by approximately $7.2 million compared to the three months ended September 30, 2020. Parking and other revenue for the nine months ended September 30, 2021 increased by approximately $4.0 million compared to 2020. The Boston Marriott Cambridge closed in March 2020 due to COVID-19. The hotel re-opened on October 2, 2020 and has operated at lower occupancy levels due to the continued impact of COVID-19 on business and leisure travel. The closing of the hotel for more than two fiscal quarters, and the lower 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, 2021: Boston Los Angeles New York San Francisco Seattle Washington, DC Total Rental Revenue: (1) Office $ 236,080 $ — $ 257,656 $ 125,340 $ — $ 85,797 $ 704,873 Residential 3,418 — — 806 — 6,670 10,894 Hotel 5,189 — — — — — 5,189 Total 244,687 — 257,656 126,146 — 92,467 720,956 % of Grand Totals 33.93 % — % 35.74 % 17.50 % — % 12.83 % 100.00 % Rental Expenses: Office 82,697 — 94,338 43,582 — 31,619 252,236 Residential 1,396 — — 1,688 — 2,961 6,045 Hotel 3,946 — — — — — 3,946 Total 88,039 — 94,338 45,270 — 34,580 262,227 % of Grand Totals 33.57 % — % 35.98 % 17.26 % — % 13.19 % 100.00 % Net operating income $ 156,648 $ — $ 163,318 $ 80,876 $ — $ 57,887 $ 458,729 % of Grand Totals 34.15 % — % 35.60 % 17.63 % — % 12.62 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,841) — (36,959) — — — (47,800) Add: Company’s share of net operating income from unconsolidated joint ventures 3,464 12,078 104 3,502 671 4,447 24,266 Company’s share of net operating income $ 149,271 $ 12,078 $ 126,463 $ 84,378 $ 671 $ 62,334 $ 435,195 % of Grand Totals 34.30 % 2.78 % 29.06 % 19.39 % 0.15 % 14.32 % 100.00 % _______________ (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, 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 nine months ended September 30, 2021: Boston Los Angeles New York San Francisco Seattle Washington, DC Total Rental Revenue: (1) Office $ 696,054 $ — $ 760,002 $ 382,119 $ — $ 252,822 $ 2,090,997 Residential 9,594 — — 1,817 — 18,421 29,832 Hotel 7,382 — — — — — 7,382 Total 713,030 — 760,002 383,936 — 271,243 2,128,211 % of Grand Totals 33.50 % — % 35.71 % 18.04 % — % 12.75 % 100.00 % Rental Expenses: Office 240,743 — 286,385 124,785 — 94,360 746,273 Residential 4,286 — — 4,918 — 8,896 18,100 Hotel 7,993 — — — — — 7,993 Total 253,022 — 286,385 129,703 — 103,256 772,366 % of Grand Totals 32.76 % — % 37.08 % 16.79 % — % 13.37 % 100.00 % Net operating income $ 460,008 $ — $ 473,617 $ 254,233 $ — $ 167,987 $ 1,355,845 % of Grand Totals 33.93 % — % 34.93 % 18.75 % — % 12.39 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (31,641) — (106,822) — — — (138,463) Add: Company’s share of net operating income from unconsolidated joint ventures 9,369 38,535 (517) 10,562 671 15,858 74,478 Company’s share of net operating income $ 437,736 $ 38,535 $ 366,278 $ 264,795 $ 671 $ 183,845 $ 1,291,860 % of Grand Totals 33.88 % 2.98 % 28.35 % 20.50 % 0.05 % 14.24 % 100.00 % _______________ (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. |
