| Statement Of Financial Position Unclassified - Real Estate Operations (USD $) | ||
| In Thousands | Jun. 30, 2009
| Dec. 31, 2008
|
| ASSETS | ||
| Real estate, at cost | $9,250,828 | $9,124,683 |
| Construction in progress | 934,397 | 835,983 |
| Land held for future development | 236,472 | 224,395 |
| Less: accumulated depreciation | (1,872,909) | (1,744,248) |
| Total real estate | 8,548,788 | 8,440,813 |
| Cash and cash equivalents | 819,245 | 241,510 |
| Cash held in escrows | 22,289 | 21,970 |
| Investments in securities | 11,173 | 11,590 |
| Tenant and other receivables (net of allowance for doubtful accounts of $4,618 and $4,006, respectively) | 78,495 | 68,743 |
| Related party note receivable | 270,000 | 270,000 |
| Accrued rental income (net of allowance of $2,698 and $15,440, respectively) | 340,123 | 316,711 |
| Deferred charges, net | 283,830 | 325,369 |
| Prepaid expenses and other assets | 22,905 | 22,401 |
| Investments in unconsolidated joint ventures | 772,319 | 782,760 |
| Total assets | 11,169,167 | 10,501,867 |
| Liabilities: | ||
| Mortgage notes payable | 2,603,597 | 2,660,642 |
| Unsecured senior notes (net of discount of $2,383 and $2,625, respectively) | 1,472,617 | 1,472,375 |
| Unsecured exchangeable senior notes (net of discount of $18,387 and $21,101, respectively) | 1,881,482 | 1,859,867 |
| Unsecured line of credit | 0 | 100,000 |
| Accounts payable and accrued expenses | 223,909 | 171,791 |
| Distributions payable | 80,475 | 97,162 |
| Accrued interest payable | 66,463 | 67,132 |
| Other liabilities | 126,560 | 173,750 |
| Total liabilities | 6,455,103 | 6,602,719 |
| Commitments and contingencies | 0 | 0 |
| Noncontrolling interests: | ||
| Redeemable partnership units-1,113,044 preferred units outstanding (1,460,688 common units at redemption value, if converted) at June 30, 2009 and December 31, 2008 | 69,675 | 80,338 |
| Redeemable partnership units-19,875,443 and 19,909,070 common units and 1,459,840 and 946,509 long term incentive units outstanding at redemption value at June 30, 2009 and December 31, 2008, respectively | 1,031,351 | 1,147,057 |
| Capital: | ||
| Boston Properties Limited Partnership partners' capital-1,598,839 and 1,420,362 general partner units and 136,949,822 and 119,760,293 limited partner units outstanding at June 30, 2009 and December 31, 2008, respectively | 3,607,937 | 2,664,853 |
| Noncontrolling interests in property partnerships | 5,101 | 6,900 |
| Total capital | 3,613,038 | 2,671,753 |
| Total liabilities and capital | $11,169,167 | $10,501,867 |
| Statement Of Financial Position Unclassified - Real Estate Operations (Parenthetical) (USD $) | ||
| In Thousands, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
| Tenant and other receivables, allowance for doubtful accounts | $4,618 | $4,006 |
| Accrued rental income, allowance | 2,698 | 15,440 |
| Unsecured senior notes, discount | 2,383 | 2,625 |
| Unsecured exchangeable senior notes, discount | $18,387 | $21,101 |
| Redeemable partnership units, preferred units outstanding | 1,113,044 | 1,113,044 |
| Redeemable partnership units, common units at redemption value, if converted | 1,460,688 | 1,460,688 |
| Redeemable partnership units, common units | 19,875,443 | 19,909,070 |
| Redeemable partnership units, long term incentive units outstanding at redemption value | 1,459,840 | 946,509 |
| Boston Properties Limited Partnership partners' capital, general partner units outstanding | 1,598,839 | 1,420,362 |
| Boston Properties Limited Partnership partners' capital, limited partner units outstanding | 136,949,822 | 119,760,293 |
| Statement Of Income Real Estate Investment Trusts (USD $) | ||||
| In Thousands, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Rental: | ||||
| Base rent | $304,864 | $281,072 | $598,381 | $562,466 |
| Recoveries from tenants | 49,821 | 49,848 | 102,229 | 98,732 |
| Parking and other | 18,416 | 17,317 | 35,357 | 33,818 |
| Total rental revenue | 373,101 | 348,237 | 735,967 | 695,016 |
| Hotel revenue | 7,396 | 9,708 | 13,458 | 16,232 |
| Development and management services | 8,551 | 6,460 | 16,847 | 11,937 |
| Interest and other | 442 | 4,275 | 762 | 16,927 |
| Total revenue | 389,490 | 368,680 | 767,034 | 740,112 |
| Real estate operating: | ||||
| Rental | 124,730 | 119,103 | 248,591 | 236,836 |
| Hotel | 5,359 | 6,449 | 10,831 | 12,346 |
| General and administrative | 18,532 | 17,467 | 35,952 | 37,055 |
| Interest | 78,633 | 69,302 | 157,563 | 141,798 |
| Depreciation and amortization | 84,949 | 72,392 | 160,263 | 145,096 |
| Loss from suspension of development | 0 | 0 | 27,766 | 0 |
| Net derivative losses | 0 | (257) | 0 | 3,531 |
| Losses from early extinguishments of debt | 494 | 0 | 494 | 0 |
| Losses (gains) from investments in securities | (1,194) | 160 | (607) | 1,033 |
| Total expenses | 311,503 | 284,616 | 640,853 | 577,695 |
| Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income attributable to noncontrolling interests | 77,987 | 84,064 | 126,181 | 162,417 |
| Income (loss) from unconsolidated joint ventures | (351) | 1,855 | 4,746 | 2,897 |
| Gains on sales of real estate | 4,493 | 6,203 | 7,288 | 29,641 |
| Net income | 82,129 | 92,122 | 138,215 | 194,955 |
| Net income attributable to noncontrolling interests: | ||||
| Noncontrolling interests in property partnerships | (691) | (420) | (1,201) | (1,045) |
| Noncontrolling interest-redeemable preferred units | (972) | (1,071) | (1,962) | (2,098) |
| Net income attributable to Boston Properties Limited Partnership | $80,466 | $90,631 | $135,052 | $191,812 |
| Basic earnings per common unit attributable to Boston Properties Limited Partnership: | ||||
| Net income | 0.55 | 0.65 | 0.94 | 1.37 |
| Weighted average number of common units outstanding | 145,635 | 140,086 | 143,604 | 139,998 |
| Diluted earnings per common unit attributable to Boston Properties Limited Partnership: | ||||
| Net income | 0.55 | 0.64 | 0.94 | 1.36 |
| Weighted average number of common units outstanding-diluted | 145,988 | 141,648 | 143,886 | 141,522 |
| Statement Of Other Comprehensive Income (USD $) | ||||
| In Thousands | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Net income | $82,129 | $92,122 | $138,215 | $194,955 |
| Other comprehensive income (loss): | ||||
| Net effective portion of interest rate contracts | 0 | 11,321 | 0 | (12,481) |
| Amortization of interest rate contracts | 738 | (98) | 1,452 | (196) |
| Other comprehensive income (loss) | 738 | 11,223 | 1,452 | (12,677) |
| Comprehensive income | 82,867 | 103,345 | 139,667 | 182,278 |
| Comprehensive income attributable to noncontrolling interests | (1,663) | (1,491) | (3,163) | (3,143) |
| Comprehensive income attributable to Boston Properties Limited Partnership | $81,204 | $101,854 | $136,504 | $179,135 |
| Statement Of Cash Flows Indirect Real Estate (USD $) | ||
| In Thousands | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Cash flows from operating activities: | ||
| Net income | $138,215 | $194,955 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 160,263 | 145,096 |
| Non-cash portion of interest expense | 27,155 | 15,818 |
| Non-cash compensation expense | 13,653 | 11,064 |
| Non-cash rental revenue | (3,600) | 0 |
| Losses from early extinguishments of debt | (6) | 0 |
| Net derivative losses | 0 | 3,531 |
| Losses (gains) from investments in securities | (607) | 862 |
| Loss from suspension of development | 27,766 | 0 |
| Income from unconsolidated joint ventures | (4,746) | (2,897) |
| Distributions of net cash flow from operations of unconsolidated joint ventures | 5,905 | 3,061 |
| Gains on sales of real estate | (7,288) | (29,641) |
| Change in assets and liabilities: | ||
| Cash held in escrows | (319) | 874 |
| Tenant and other receivables, net | 5,714 | 17,773 |
| Accrued rental income, net | (23,412) | (25,555) |
| Prepaid expenses and other assets | (504) | (6,752) |
| Accounts payable and accrued expenses | 7,408 | (838) |
| Accrued interest payable | (669) | 1,492 |
| Other liabilities | (14,902) | (45,631) |
| Tenant leasing costs | (13,089) | (32,227) |
| Total adjustments | 178,722 | 56,030 |
| Net cash provided by operating activities | 316,937 | 250,985 |
| Cash flows from investing activities: | ||
| Acquisitions/additions to real estate | (196,503) | (232,243) |
| Proceeds from redemptions of investments in securities | 1,024 | 9,657 |
| Net investments in unconsolidated joint ventures | (3,486) | (517,003) |
| Net proceeds from the sale/financing of real estate released from escrow | 0 | 126,321 |
| Issuance of note receivable | 0 | (270,000) |
| Proceeds from note receivable | 0 | 123,000 |
| Net proceeds from the sales of real estate | 0 | 128,258 |
| Net cash used in investing activities | (198,965) | (632,010) |
| Cash flows from financing activities: | ||
| Borrowings on unsecured line of credit | 0 | 629,000 |
| Repayments of unsecured line of credit | (100,000) | (429,000) |
| Proceeds from mortgage notes payable | 35,045 | 106,462 |
| Repayments of mortgage notes payable | (92,058) | (297,093) |
| Payments on real estate financing transactions | 0 | (3,065) |
| Advance from joint venture partners | 0 | 30,000 |
| Distributions | (195,692) | (1,041,884) |
| Net proceeds from equity transactions | 843,601 | (1,226) |
| Distributions to noncontrolling interests in property partnerships, net | (3,000) | (2,202) |
| Repayment of note payable | (25,000) | 0 |
| Deferred financing costs | (3,133) | (4,778) |
| Net cash provided by (used in) financing activities | 459,763 | (1,013,786) |
| Net increase (decrease) in cash and cash equivalents | 577,735 | (1,394,811) |
| Cash and cash equivalents, beginning of period | 241,510 | 1,506,921 |
| Cash and cash equivalents, end of period | 819,245 | 112,110 |
| Supplemental disclosures: | ||
| Cash paid for interest | 155,274 | 145,332 |
| Interest capitalized | 24,197 | 19,221 |
| Non-cash investing and financing activities: | ||
| Additions to real estate included in accounts payable | 41,230 | 13,412 |
| Distributions declared but not paid | 80,475 | 96,451 |
| Issuance of OP Units in connection with the acquisition of real estate | 0 | 15,000 |
| Issuance of OP Units in connection with an investment in an unconsolidated joint venture | 0 | 10,000 |
| Conversions of Redeemable partnership units to Partners' capital | 0 | 4,743 |
| Note receivable issued in connection with the transfer of real estate | 0 | 123,000 |
| Issuance of restricted securities to employees and directors | $22,964 | $43,283 |
| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Notes to Financial Statements [Abstract] | |
| 1. Organization | 1. Organization Boston Properties Limited Partnership (the Company), a Delaware limited partnership, is the entity through which Boston Properties, Inc., a self-administered and self-managed real estate investment trust (REIT), conducts substantially all of its business and owns (either directly or through subsidiaries) substantially all of its assets. Boston Properties, Inc. is the sole general partner of the Company and at June30, 2009 owned an approximate 85.9% (84.1% at June30, 2008) general and limited partnership interest in the Company. Partnership interests in the Company 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 2008, the Company issued LTIP Units in connection with the granting to employees of 2008 outperformance awards (also referred to as 2008 OPP Units). Because the rights, preferences and privileges of 2008 OPP 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 2008 OPP Units. Unless specifically noted otherwise, all references to OP Units exclude units held by Boston Properties, Inc. A holder of an OP Unit may present such OP Unit to the Company 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 Company must redeem such OP Unit for cash equal to the then value of a share of common stock of Boston Properties, Inc. (Common Stock). In lieu of a cash redemption, Boston Properties, Inc. 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 Boston Properties, Inc. 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 Boston Properties, Inc. 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 June30, 2009, there was one series of Preferred Units outstanding (i.e., Series Two Preferred Units). The Series Two Preferred Units bear a distribution that is set in accordance with an amendment to the partnership agreement of the Company. Preferred Units may also be converted into OP Units or redeemed for cash at the election of the holder thereof or the Company in accordance with the terms and conditions set forth in the applicable amendment to the partnership agreement (See Note 8). All references herein to the Company refer to Boston Properties Limit |
| 2. 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 Company, nor does it have employees of its own. The Company, not Boston Properties, Inc., executes all significant business relationships. All majority-owned subsidiaries and affiliates 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 Companys 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 Companys financial statements and notes thereto contained in the Companys Annual Report in the Companys Form 10-K for its fiscal year ended December31, 2008. Revenue Recognition Contractual rental revenue is reported on a straight-line basis over the terms of the Companys respective leases. Accrued rental income as reported on the Consolidated Balance Sheets represents rental income recognized in excess of rent payments actually received pursuant to the terms of the individual lease agreements. The accrued rental income balance includes a reduction of the allowance totaling approximately $13.3 million due to the termination of the Companys lease with Lehman Brothers, Inc. On April30, 2009, Lehman Brothers, Inc., the Companys tenth largest tenant (by square feet) with approximately 437,000 net rentable square feet in its 399 Park Avenue property, rejected its lease in bankruptcy. During 2008, the Company had established a reserve for the full amount of the Lehman Brothers, Inc. accrued straight-line rent balance. Reclassifications and Adoption of New Accounting Pronouncements Certain |
| 3. Real Estate Activity During the Six Months Ended June 30, 2009 | 3. Real Estate Activity During the Six Months Ended June30, 2009 Development On January16, 2009, the Company acquired the development rights for the site at 17 Cambridge Center in Cambridge, Massachusetts for approximately $11.4 million. On February6, 2009, the Company announced that it was suspending construction on its 1,000,000 square foot office building at 250 West 55th Street in New York City. The Company intends to complete the construction of foundations and steel/deck to grade to facilitate a restart of construction in the future and therefore anticipates that most construction activity on this project will be completed by the end of the fourth quarter of 2009. During the six months ended June30, 2009, the Company recognized aggregate costs of approximately $27.8 million related to the suspension of development. On April1, 2009, the Company placed in-service One Preserve Parkway, an approximately 184,000 net rentable square foot ClassA office property located in Rockville, Maryland. The property is 20% leased. On May31, 2009, a consolidated joint venture in which the Company has a 66.67% interest placed in-service the Offices at Wisconsin Place, an approximately 299,000 net rentable square foot ClassA office property located in Chevy Chase, Maryland. The property is 91% leased. Dispositions On April14, 2008, the Company sold a parcel of land located in Washington, DC for approximately $33.7 million. The Company had previously entered into a development management agreement with the buyer to develop a ClassA office property on the parcel totaling approximately 165,000 net rentable square feet. Due to the Companys involvement in the construction of the project, the gain on sale had been deferred and is being recognized over the project construction period generally based on the percentage of total project costs incurred to estimated total project costs. As a result, the Company recognized a gain on sale during the six months ended June30, 2009 of approximately $7.3 million. The Company has recognized a cumulative gain on sale of approximately $17.2 million. |
| 4. Investments in Unconsolidated Joint Ventures | 4. Investments in Unconsolidated Joint Ventures The Companys investments in unconsolidated joint ventures consist of the following at June30, 2009: Entity Properties Nominal% Ownership Square 407 Limited Partnership MarketSquareNorth 50.0 % The Metropolitan Square Associates LLC Metropolitan Square 51.0 %(1) BP/CRF 901 New York Avenue LLC 901NewYorkAvenue 25.0 %(2) WP Project Developer LLC Wisconsin Place Land and Infrastructure 23.9 %(3) Wisconsin Place Retail LLC Wisconsin Place Retail 5.0 %(4) Eighth Avenue and 46th Street Entities Eighth Avenue and 46th Street 50.0 %(4) Boston Properties Office Value-Added Fund, L.P. 300 BillericaRoad, One Two Circle Star Way and Mountain View Research and Technology Parks 36.9 %(2)(5) Annapolis Junction NFM, LLC Annapolis Junction 50.0 % 767 Venture, LLC The General Motors Building 60.0 %(1) 2 GCT Venture LLC Two Grand Central Tower 60.0 %(1) 540 Madison Venture LLC 540 Madison Avenue 60.0 %(1) 125 West 55th Street Venture LLC 125 West 55th Street 60.0 %(1) (1) The Company has determined that these entities are not VIEs and that its joint venture partners have substantive participating rights with respect to the assets and operations of the properties, pursuant to the joint venture agreements. (2) The Companys economic ownership can increase based on the achievement of certain return thresholds. (3) Represents the Companys effective ownership interest. The Company has a 66.67%, 5% and 0% interest in the office, retail and residential joint venture entities, respectively, each of which owns a 33.33% interest in the entity developing and owning the land and infrastructure of the project. (4) These properties have been partially placed in-service or are not in operation (i.e., under construction or assembled land). (5) Represents the Companys effective ownership interest. The Company has a 25.0% interest in the 300 Billerica Road and One Two Circle Star Way properties and a 39.5% interest in the Mountain View Research and Technology Park properties. Certain of the Companys 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 unconsolidated joint ventures are as follows: June30, 2009 December31, 2008 (in thousands) ASSETS Real estate and development in process, net $ 5,210,046 $ 5,235,149 Other assets 761,415 824,232 Total assets $ 5,971,461 $ 6,059,381 LIABILITIES AND MEMBERS/PARTNERS EQUITY Mortgage and notes payable $ 3,205,044 $ 3,189,549 Other liabilities 1,116,268 1,215,849 Members/Partners equity 1,650,149 1,653,983 |
| 5. Mortgage Notes Payable | 5. Mortgage Notes Payable On April21, 2009, the Company obtained construction financing totaling $215.0 million collateralized by its Atlantic Wharf development project located at 280 Congress Street in Boston, Massachusetts. Atlantic Wharf, formerly known as Russia Wharf, is a mixed-use project totaling approximately 815,000 net rentable square feet. Wellington Management Company, LLP has leased approximately 450,000 square feet of the office space in the development commencing in the first quarter of 2011. The construction financing bears interest at a variable rate equal to LIBOR plus 3.00%per annum and matures on April21, 2012 with two, one-year extension options. On June9, 2009, the Company used available cash to repay the mortgage loan collateralized by its Reservoir Place property located in Waltham, Massachusetts totaling approximately $47.8 million. The mortgage loan bore interest at a fixed rate of 7.00% and was scheduled to mature on July1, 2009. There was no prepayment penalty. On June26, 2009, the Company used available cash to repay the mortgage loan collateralized by its Ten Cambridge Center property located in Cambridge, Massachusetts totaling approximately $30.1 million. The mortgage loan bore interest at a fixed rate of 8.27% and was scheduled to mature on May1, 2010. The Company paid a prepayment penalty totaling $0.5 million in connection with the repayment. |
| 6. Unsecured Exchangeable Senior Notes | 6. Unsecured Exchangeable Senior Notes The following summarizes the unsecured exchangeable senior notes outstanding as of June30, 2009 (dollars in thousands): Coupon/ StatedRate Effective Rate(1) Exchange Rate Principal Amount FirstOptional RedemptionDateby Company Maturity Date 3.625% Exchangeable Senior Notes 3.625 % 4.037 % 8.5051 (2) $ 747,500 N/A February15,2014 2.875% Exchangeable Senior Notes 2.875 % 3.462 % 7.0430 (3) 862,500 February20,2012 February 15, 2037 3.750% Exchangeable Senior Notes 3.750 % 3.787 % 10.0066 (4) 450,000 May18,2013 May 15, 2036 Total principal 2,060,000 Net discount (18,387 ) FSPNo.APB14-1 Adjustment, net of accumulated amortization (160,131 ) Total $ 1,881,482 (1) Yield on issuance date including the effects of discounts on the notes and excluding the effects of FSP No. APB 14-1. (2) The initial exchange rate is 8.5051 shares per $1,000 principal amount of the notes (or an initial exchange price of approximately $117.58 per share of Boston Properties, Inc.s Common Stock). In addition, we entered into capped call transactions with affiliates of certain of the initial purchasers, which are intended to reduce the potential dilution upon future exchange of the notes. The capped call transactions are expected to have the effect of increasing the effective exchange price to us of the notes from $117.58 to approximately $137.17 per share, representing an overall effective premium of approximately 40% over the closing price on August13, 2008 of $97.98 per share of Boston Properties, Inc.s Common Stock. The net cost of the capped call transactions was approximately $44.4 million. (3) In connection with the special distribution of $5.98 per share of Boston Properties, Inc.s Common Stock declared on December17, 2007, the exchange rate was adjusted from 6.6090 to 7.0430 shares per $1,000 principal amount of notes effective as of December31, 2007, resulting in an exchange price of approximately $141.98 per share of Boston Properties, Inc.s Common Stock. (4) In connection with the special distribution of $5.98 per share of Boston Properties, Inc.s Common Stock declared on December17, 2007, the exchange rate was adjusted from 9.3900 to 10.0066 shares per $1,000 principal amount of notes effective as of December31, 2007, resulting in an exchange price of approximately $99.93 per share of Boston Properties, Inc.s Common Stock. FSP No. APB 14-1 requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) to be separately accounted for in a manner that reflects the issuers nonconvertible debt borrowing rate. FSP No. APB 14-1 requires that the initial proceeds from the sale of the Companys $862.5 million of 2.875% exchangeable senior notes due 2037, $450.0 million of 3.75% exchangeab |
| 7. Commitments and Contingencies | 7. Commitments and Contingencies General In the normal course of business, the Company guarantees its performance of services or indemnifies third parties against its negligence. The Company has letter of credit and performance obligations of approximately $19.4 million related to lender and development requirements. Certain of the Companys 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. Under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. In connection with the assumption of the General Motors Buildings secured loan by the Companys unconsolidated joint venture, 767 Venture, LLC, the Company guaranteed the unconsolidated joint ventures obligation to fund various escrows, including tenant improvements, taxes and insurance in lieu of cash deposits. As of June 30, 2009, the maximum funding obligation under the guarantee was approximately $34.8 million. 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. 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 September11, 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 December31, 2014 by the Terrorism Risk Insurance Program Reauthorization Act of 2007 (TRIPRA). Currently, the Companys property insurance program per occurrence limits are $1.0 billion for its portfolio insurance program, including coverage for acts of terrorism certified under TRIA. The Company currently insures certain properties, including the General Motors Building located at 767 Fifth Avenue in New York, New York (767 Fifth Avenue), in separate stand alone insurance programs. The property insurance program per occurrence limits for 767 Fifth Avenue are $1.625 billion, including coverage for acts of terrorism certified under TRIA, with $1.375 billion of coverage for losses in excess of $250 million being provided by NYXP, LLC, as a direct insurer. The Company also currently carries nuclear, biological, chemical and radiological terrorism insurance coverage (NBCR Coverage) for acts of terrorism certified under TRIA, which is provided by IXP, LLC as a direct insurer, for the properties in our portfolio, including 767 Fifth Avenue, but excluding the |
| 8. Noncontrolling Interests | 8. Noncontrolling Interests Effective January1, 2009, the Company adopted Statement of Financial Accounting Standards No.160, Noncontrolling Interests in Consolidated Financial Statementsan amendment of ARB No.51 (SFASNo.160) and EITF Topic No. D-98 Classification and Measurement of Redeemable Securities (Amended), under which noncontrolling interests of the Company (previously known as minority interests) are classified either as a component of equity or in the mezzanine section of the balance sheet as temporary equity depending on the terms of such noncontrolling interests. As a result of the adoption of SFAS No.160, the Company reclassified the noncontrolling interests in consolidated property partnerships from the mezzanine section of its Consolidated Balance Sheets to equity. The reclassification totaled approximately $6.9 million as of December31, 2008. Noncontrolling interests related to redeemable preferred units and redeemable common units of the Company continue to be classified in the mezzanine section of the Consolidated Balance Sheets. Noncontrolling interests related to redeemable common units of the Company are adjusted each period to reflect the carrying value equal to the greater of the carrying value based on historical cost or the redemption value. Under SFAS No.160, net income encompasses the total income of all consolidated subsidiaries and there is a separate disclosure of the attribution of that income between controlling and noncontrolling interests. The implementation of this standard had no effect on the Companys results of operations. As a result of the adoption of SFAS No.160, net income attributable to noncontrolling interests is now deducted from net income in the determination of net income attributable to the Company for all periods presented. In addition, other comprehensive income (loss) attributable to noncontrolling interests is now deducted from comprehensive income in the determination of comprehensive income attributable to the Company for all periods presented. Noncontrolling interests relate to the interests in the Company not owned by Boston Properties, Inc. and interests in property partnerships not wholly-owned by the Company. As of June30, 2009, the noncontrolling interests consisted of 19,875,443 OP Units, 1,459,840 LTIP Units, 1,080,938 2008 OPP Units and 1,113,044 Series Two Preferred Units (or 1,460,688 OP Units on an as converted basis) held by parties other than Boston Properties, Inc. Noncontrolling InterestRedeemable Preferred Units The Preferred Units at June30, 2009 consisted solely of 1,113,044 Series Two Preferred Units, which bear a preferred distribution equal to the greater of (1)the distribution which would have been paid in respect of the Series Two Preferred Unit had such Series Two Preferred Unit been converted into an OP Unit (including both regular and special distributions) or (2)a rate ranging from 5.00% to 7.00%per annum on a liquidation preference of $50.00 per unit, and are convertible into OP Units at a rate of $38.10 per Preferred Unit (1.312336 OP Units for each Preferred Unit). Distributions on the Series Two Preferred Units are payable quarterly and, u |
| 9. Partners' Capital | 9. Partners Capital As of June30, 2009, Boston Properties, Inc. owned 1,598,839 general partnership units and 136,949,822 limited partnership units. On June10, 2009, Boston Properties, Inc. completed a public offering of 17,250,000 shares of its Common Stock (including 2,250,000 shares issued as a result of the exercise of an overallotment option by the underwriters) at a price to the public of $50.00 per share. The proceeds from this public offering, net of underwriters discounts and offering costs, totaled approximately $842.0 million, which was contributed by Boston Properties, Inc. to the Company in exchange for 17,250,000 OP Units. During the six months ended June30, 2009, Boston Properties, Inc. acquired 34,235 OP Units in connection with the redemption of an equal number of redeemable OP Units from third parties. On January30, 2009, the Company paid a distribution in the amount of $0.68 per OP Unit to unitholders of record as of the close of business on December31, 2008. On April30, 2009, the Company paid a distribution in the amount of $0.68 per OP Unit to unitholders of record as of the close of business on March31, 2009. On June17, 2009, Boston Properties, Inc., as general partner of the Company, declared a distribution in the amount of $0.50 per OP Unit payable on July31, 2009 to unitholders of record as of the close of business on June30, 2009. |
| 10. Earnings Per Common Unit | 10. Earnings Per Common Unit Earnings per common unit has been computed pursuant to the provisions of SFAS No.128. During 2004, the Company adopted EITF 03-6 Participating Securities and the Two-Class Method under FASB 128 (EITF03-6), which provides further guidance on the definition of participating securities. Pursuant to EITF 03-6, the Companys Series Two Preferred Units, which are reflected as Noncontrolling InterestsRedeemable Partnership Units in the Companys Consolidated Balance Sheets, are considered participating securities and are included in the computation of basic and diluted earnings per common unit of the Company if the effect of applying the if-converted method is dilutive. The terms of the Series Two Preferred Units enable the holders to obtain OP Units of the Company.In June2008, the FASB issued FSP EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (FSP EITF 03-6-1). FSP EITF 03-6-1 clarifies that unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per common unit pursuant to the two-class method.FSP EITF 03-6-1 requires the retrospective adjustment of all prior-period earnings per common unit data presented (including interim financial statements, summaries of earnings, and selected financial data) to conform with the provisions of the FSP. Early application was not permitted.As a result, the Companys unvested restricted stock, LTIP Units and 2008 OPP Units are considered participating securities and are included in the computation of basic and diluted earnings per common unit of the Company if the effect of applying the if-converted method is dilutive.The adoption of FSP 03-6-1 on January1, 2009 did not have a material impact on the Companys computation of earnings per common unit.Other potentially dilutive common units and the related impact on earnings are considered when calculating diluted earnings per common unit.Because the 2008 OPP Units require Boston Properties, Inc. to outperform absolute and relative return thresholds, unless such thresholds have been met by the end of the applicable reporting period, the Company excludes all contingently issuable units from the diluted earnings per common unit calculation. For the three and six months ended June30, 2009 and 2008, the absolute and relative return thresholds for the 2008 OPP Units were not met and as a result the 2008 OPP Units have been excluded from the diluted earnings per common unit calculation. Included in the number of units (the denominator) below are approximately 20,368,000 and 20,333,000 redeemable common units for the three months ended June30, 2009 and 2008, respectively, and approximately 20,332,000 and 20,354,000 redeemable common units for the six months ended June30, 2009 and 2008, respectively. The following table provides a reconciliation of both the net income attributable to Boston Properties Limited Partnership and the number of common units used in the computation of basic earnings per common unit, which is |
| 11. Stock Option and Incentive Plan | 11. Stock Option and Incentive Plan During the six months ended June30, 2009, Boston Properties, Inc. issued 62,876 shares of restricted common stock and the Company issued 515,007 LTIP Units to employees and directors under the 1997 Stock Option and Incentive Plan (the 1997 Plan). Employees paid $0.01 per share of restricted common stock and $0.25 per LTIP Unit. The shares of restricted stock were valued at approximately $2.8 million ($43.89 per share weighted-average). The LTIP Units were valued at approximately $21.1 million ($41.05 per unit fair value weighted-average) using a Monte Carlo simulation method model in accordance with the provisions of SFAS No.123R. The per unit fair value of each LTIP Unit granted was estimated on the date of grant using the following assumptions: an expected life of 5.6 years, a risk-free interest rate of 1.87% and an expected price volatility of 40.0%. An LTIP Unit is generally the economic equivalent of a share of restricted stock in Boston Properties, Inc. The aggregate value of the LTIP Units is included in noncontrolling interests in the Consolidated Balance Sheets. The restricted stock and LTIP Units granted to employees between January1, 2004 and November 2006 vest over a five-year term. Grants of restricted stock and LTIP Units made in and after November 2006 vest in four equal annual installments. Restricted stock and LTIP Units are measured at fair value on the date of grant based on the number of shares or units granted, as adjusted for forfeitures, and the closing price of Boston Properties, Inc.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. Dividends paid on both vested and unvested shares of restricted stock are charged directly to Partners Capital in the Consolidated Balance Sheets. Stock-based compensation expense associated with restricted stock, LTIP Units and 2008 OPP Units was approximately $6.3 million and $5.4 million for the three months ended June30, 2009 and 2008, respectively, and approximately $13.1 million and $10.6 million for the six months ended June30, 2009 and 2008, respectively. At June30, 2009, there was $44.6 million of unrecognized compensation cost related to unvested restricted stock and LTIP Units and $11.6 million of unrecognized compensation cost related to unvested 2008 OPP Units that is expected to be recognized over a weighted-average period of approximately 2.9 years. |
| 12. Segment Information | 12. Segment Information The Companys segments are based on the Companys method of internal reporting which classifies its operations by both geographic area and property type. The Companys segments by geographic area are Greater Boston, Greater Washington, D.C., Midtown Manhattan, Greater San Francisco and New Jersey. Segments by property type include: ClassA Office, Office/Technical 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, general and administrative expenses, interest expense, depreciation and amortization expense, loss from suspension of development, noncontrolling interests, income (loss) from unconsolidated joint ventures, gains on sales of real estate, net derivative losses (gains), losses from early extinguishments of debt and losses (gains) from investments in securities are not included in Net Operating Income as the 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 Companys properties. Information by geographic area and property type: Three months ended June30, 2009 (dollars in thousands): Greater Boston Greater Washington,D.C. Midtown Manhattan Greater SanFrancisco New Jersey Total Rental Revenue: ClassA $ 90,932 $ 78,726 $ 120,562 $ 55,598 $ 15,650 $ 361,468 Office/Technical 7,580 4,053 11,633 Hotel 7,396 7,396 Total 105,908 82,779 120,562 55,598 15,650 380,497 % of Total 27.83 % 21.76 % 31.69 % 14.61 % 4.11 % 100.00 % Real Estate Operating Expenses: ClassA 34,229 22,346 36,824 20,704 7,358 121,461 Office/Technical 2,174 1,095 3,269 Hotel 5,359 5,359 Total 41,762 23,441 36,824 20,704 7,358 130,089 % of Total 32.10 % 18.02 % 28.31 % 15.91 % 5.66 % 100.00 % Net Operating Income $ 64, |
| 13. Newly Issued Accounting Standards | 13. Newly Issued Accounting Standards In June 2008, the FASB ratified EITF Issue No.07-5, Determining Whether an Instrument (or an Embedded Feature) Is Indexed to an Entitys Own Stock (EITFNo. 07-5). EITFNo. 07-5 requires entities to apply a two step approach to evaluate whether an equity-linked financial instrument (or embedded feature) is indexed to its own stock. EITFNo. 07-5 was effective on January1, 2009. The adoption of EITF No.07-5 did not have a material impact on the Company. In April 2009, the FASB issued FSP No.157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly (FSP FAS 157-4). FSP FAS 157-4 provides additional guidance for estimating fair value in accordance with FASB Statement No.157, Fair Value Measurements, when the volume and level of activity for the asset or liability have significantly decreased. FSP FAS 157-4 also includes guidance on identifying circumstances that indicate a transaction is not orderly. FSP FAS 157-4 was effective for interim and annual reporting periods ending after June15, 2009. The adoption of FSP FAS 157-4 did not have a material impact on the Companys financial position or results of operations. In June 2009, the FASB issued SFAS No.167, Amendments to FASB Interpretation No.46(R) (SFAS No.167), which modifies the approach to determining the primary beneficiary of a variable interest entity (VIE) and requires companies to more frequently assess whether they must consolidate a VIE. SFAS No.167 is effective on the first annual reporting period that begins after November15, 2009. The Company is currently assessing the potential impact that the adoption of SFAS No.167 will have on its financial statements. In June2009, the FASB issued SFAS No.168, The FASB Accounting Standards Codificationand the Hierarchy of Generally Accepted Accounting Principles-a replacement of FASB Statement No.162 (SFAS No.168), which establishes the FASB Accounting Standards Codification (the Codification) as the source of authoritative U.S. generally accepted accounting principles (GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of this Statement, the Codification will supersede all then-existing non-SEC accounting and reporting standards.SFAS No.168 is effective for financial statements issued for interim and annual periods ending after September15, 2009. The adoption of SFAS No.168 is not expected to have a material impact on the Company. |
| 14. Subsequent Events | 14. Subsequent Events In May 2009, the FASB issued SFAS No.165 Subsequent Events (SFAS No.165), which establishes general standards of accounting and disclosure for events that occur after the balance sheet date but before the financial statements are issued. SFAS No.165 was effective for interim or annual periods beginning after June15, 2009. The Company has evaluated subsequent events through the time of filing these financial statements with the SEC on Form 10-Q on August6, 2009. On July30, 2009, the Company obtained mortgage financing totaling $50.0 million collateralized by its Reservoir Place property located in Waltham, Massachusetts. The mortgage financing initially bears interest at a variable rate equal to LIBOR plus 3.85%per annum and matures on July30, 2014. On August3, 2009, the Company used available cash to repay the mortgage loans collateralized by its 1301 New York Avenue property located in Washington, DC aggregating approximately $20.5 million. The mortgage loans bore interest at a weighted-average fixed rate of 6.91% and were scheduled to mature on August15, 2009. There were no prepayment penalties. |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information [Text Block] | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Amendment Description | N.A. |
| Document Period End Date | 2009-06-30 |
| Entity Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Entity [Text Block] | |
| Entity Registrant Name | BOSTON PROPERTIES LTD PARTNERSHIP |
| Entity Central Index Key | 0001043121 |
| Current Fiscal Year End Date | --12-31 |
| Entity Well-known Seasoned Issuer | Yes |
| Entity Current Reporting Status | Yes |
| Entity Voluntary Filers | No |
| Entity Filer Category | Non-accelerated Filer |
