| Segment Reporting Disclosure [Text Block] | 9. 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 months ended March 31, 2022 and 2021. BXP Three months ended March 31, 2022 2021 (in thousands) Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624 Add: Preferred stock redemption charge — 6,412 Preferred dividends — 2,560 Noncontrolling interest—common units of the Operating Partnership 16,361 11,084 Noncontrolling interests in property partnerships 17,549 16,467 Interest expense 101,228 107,902 Losses from early extinguishment of debt — 898 Net operating income from unconsolidated joint ventures 37,321 24,795 Depreciation and amortization expense 177,624 176,565 Transaction costs — 331 Payroll and related costs from management services contracts 4,065 3,505 General and administrative expense 43,194 44,959 Less: Net operating income attributable to noncontrolling interests in property partnerships 47,055 44,376 Gains (losses) from investments in securities (2,262) 1,659 Interest and other income (loss) 1,228 1,168 Gains on sales of real estate 22,701 — Income from unconsolidated joint ventures 2,189 5,225 Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505 Development and management services revenue 5,831 6,803 Company’s share of Net Operating Income $ 459,582 $ 424,366 BPLP Three months ended March 31, 2022 2021 (in thousands) Net income attributable to Boston Properties Limited Partnership common unitholders $ 161,829 $ 105,773 Add: Preferred unit redemption charge — 6,412 Preferred distributions — 2,560 Noncontrolling interests in property partnerships 17,549 16,467 Interest expense 101,228 107,902 Losses from early extinguishment of debt — 898 Net operating income from unconsolidated joint ventures 37,321 24,795 Depreciation and amortization expense 175,886 173,500 Transaction costs — 331 Payroll and related costs from management services contracts 4,065 3,505 General and administrative expense 43,194 44,959 Less: Net operating income attributable to noncontrolling interests in property partnerships 47,055 44,376 Gains (losses) from investments in securities (2,262) 1,659 Interest and other income (loss) 1,228 1,168 Gains on sales of real estate 23,384 — Income from unconsolidated joint ventures 2,189 5,225 Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505 Development and management services revenue 5,831 6,803 Company’s share of Net Operating Income $ 459,582 $ 424,366 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, 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 on sales of real estate, income 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 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, 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 on sales of real estate, income from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue are not included in NOI and are provided as reconciling items to the Company’s reconciliations of its share of NOI to net income 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 in a joint venture that acquired Safeco Plaza located in Seattle, Washington. 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. Parking and other revenue for the three months ended March 31, 2022 increased by approximately $4.8 million compared to the three months ended March 31, 2021. These increases were primarily in transient and monthly parking revenue. The decreased demand for and occupancy of the Boston Marriott Cambridge hotel have had, and are expected to continue to have, a material adverse effect on its 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 March 31, 2022: Boston Los Angeles New York San Francisco Seattle Washington, DC Total Rental Revenue: (1) Office $ 242,078 $ — $ 256,870 $ 132,375 $ — $ 95,565 $ 726,888 Residential 3,596 — — 2,391 — 6,979 12,966 Hotel 4,557 — — — — — 4,557 Total 250,231 — 256,870 134,766 — 102,544 744,411 % of Grand Totals 33.61 % — % 34.51 % 18.10 % — % 13.78 % 100.00 % Rental Expenses: Office 90,528 — 96,340 43,408 — 33,547 263,823 Residential 1,437 — — 1,868 — 3,127 6,432 Hotel 4,840 — — — — — 4,840 Total 96,805 — 96,340 45,276 — 36,674 275,095 % of Grand Totals 35.19 % — % 35.02 % 16.46 % — % 13.33 % 100.00 % Net operating income $ 153,426 $ — $ 160,530 $ 89,490 $ — $ 65,870 $ 469,316 % of Grand Totals 32.69 % — % 34.21 % 19.07 % — % 14.03 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (11,735) — (35,320) — — — (47,055) Add: Company’s share of net operating income from unconsolidated joint ventures 9,693 13,757 (156) 3,181 1,955 8,891 37,321 Company’s share of net operating income $ 151,384 $ 13,757 $ 125,054 $ 92,671 $ 1,955 $ 74,761 $ 459,582 % of Grand Totals 32.94 % 2.99 % 27.21 % 20.16 % 0.43 % 16.27 % 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 March 31, 2021: Boston Los Angeles New York San Francisco Washington, DC Total Rental Revenue: (1) Office $ 230,403 $ — $ 250,164 $ 130,598 $ 82,415 $ 693,580 Residential 3,045 — — 321 5,809 9,175 Hotel 632 — — — — 632 Total 234,080 — 250,164 130,919 88,224 703,387 % of Grand Totals 33.28 % — % 35.57 % 18.61 % 12.54 % 100.00 % Rental Expenses: Office 79,881 — 99,385 40,249 31,747 251,262 Residential 1,455 — — 1,686 2,986 6,127 Hotel 2,051 — — — — 2,051 Total 83,387 — 99,385 41,935 34,733 259,440 % of Grand Totals 32.14 % — % 38.31 % 16.16 % 13.39 % 100.00 % Net operating income $ 150,693 $ — $ 150,779 $ 88,984 $ 53,491 $ 443,947 % of Grand Totals 33.94 % — % 33.97 % 20.04 % 12.05 % 100.00 % Less: Net operating income attributable to noncontrolling interests in property partnerships (10,224) — (34,152) — — (44,376) Add: Company’s share of net operating income from unconsolidated joint ventures 2,281 14,192 (793) 3,480 5,635 24,795 Company’s share of net operating income $ 142,750 $ 14,192 $ 115,834 $ 92,464 $ 59,126 $ 424,366 % of Grand Totals 33.64 % 3.34 % 27.30 % 21.79 % 13.93 % 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. |
