Segment Information (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Schedule Of Reconciliation Of Net Operating Income To Net Income

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, 2019 and 2018.

Boston Properties, Inc.

	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019		2018
	(in thousands)
Net income attributable to Boston Properties, Inc. common shareholders	$	107,771		$	119,118		$	370,200	$	423,835
Add:
Preferred dividends	2,625			2,625			7,875		7,875
Noncontrolling interest—common units of Boston Properties Limited Partnership	12,504			13,852			43,133		49,128
Noncontrolling interests in property partnerships	18,470			14,850			54,782		46,484
Interest expense	106,471			95,366			309,837		277,790
Loss from early extinguishment of debt	28,010			—			28,010		—
Impairment loss	—			—			24,038		—
Net operating income from unconsolidated joint ventures	23,065			22,511			73,129		54,798
Depreciation and amortization expense	165,862			157,996			507,867		480,210
Transaction costs	538			914			1,415		1,409
Payroll and related costs from management services contracts	2,429			2,516			8,227		7,371
General and administrative expense	31,147			29,677			107,980		94,039
Less:
Net operating income attributable to noncontrolling interests in property partnerships	46,249			43,068			138,896		132,026
Gains from investments in securities	106			1,075			4,240		1,454
Interest and other income	7,178			2,822			14,546		7,049
Gains (losses) on sales of real estate	(15		)	7,863			766		122,552
Income (loss) from unconsolidated joint ventures	(649		)	(4,313		)	47,528		(3,083		)
Direct reimbursements of payroll and related costs from management services contracts	2,429			2,516			8,227		7,371
Development and management services revenue	10,303			15,253			29,566		32,963
Company’s share of Net Operating Income	$	433,291		$	391,141		$	1,292,724	$	1,142,607

Boston Properties Limited Partnership

	Three months ended September 30,						Nine months ended September 30,
	2019			2018			2019		2018
	(in thousands)
Net income attributable to Boston Properties Limited Partnership common unitholders	$	122,117		$	136,201		$	421,214	$	483,069
Add:
Preferred distributions	2,625			2,625			7,875		7,875
Noncontrolling interests in property partnerships	18,470			14,850			54,782		46,484
Interest expense	106,471			95,366			309,837		277,790
Loss from early extinguishment of debt	28,010			—			28,010		—
Impairment loss	—			—			22,272		—
Net operating income from unconsolidated joint ventures	23,065			22,511			73,129		54,798
Depreciation and amortization expense	164,020			156,056			501,901		474,383
Transaction costs	538			914			1,415		1,409
Payroll and related costs from management services contracts	2,429			2,516			8,227		7,371
General and administrative expense	31,147			29,677			107,980		94,039
Less:
Net operating income attributable to noncontrolling interests in property partnerships	46,249			43,068			138,896		132,026
Gains from investments in securities	106			1,075			4,240		1,454
Interest and other income	7,178			2,822			14,546		7,049
Gains (losses) on sales of real estate	(15		)	9,154			915		126,831
Income (loss) from unconsolidated joint ventures	(649		)	(4,313		)	47,528		(3,083		)
Direct reimbursements of payroll and related costs from management services contracts	2,429			2,516			8,227		7,371
Development and management services revenue	10,303			15,253			29,566		32,963
Company’s share of Net Operating Income	$	433,291		$	391,141		$	1,292,724	$	1,142,607

Schedule Of Segment Information By Geographic Area And Property Type

Information by geographic area (dollars in thousands):

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 three months ended September 30, 2018:

	Boston			Los Angeles			New York			San Francisco			Washington, DC			Total
Rental Revenue: (1)
Office	$	210,277		$	—		$	237,944		$	102,035		$	98,275		$	648,531
Residential	1,905			—			—			—			4,415			6,320
Hotel	13,664			—			—			—			—			13,664
Total	225,846			—			237,944			102,035			102,690			668,515
% of Grand Totals	33.78		%	—		%	35.60		%	15.26		%	15.36		%	100.00		%
Rental Expenses:
Office	78,089			—			96,795			34,016			35,365			244,265
Residential	1,159			—			—			—			2,565			3,724
Hotel	8,828			—			—			—			—			8,828
Total	88,076			—			96,795			34,016			37,930			256,817
% of Grand Totals	34.30		%	—		%	37.68		%	13.25		%	14.77		%	100.00		%
Net operating income	$	137,770		$	—		$	141,149		$	68,019		$	64,760		$	411,698
% of Grand Totals	33.46		%	—		%	34.29		%	16.52		%	15.73		%	100.00		%
Less: Net operating income attributable to noncontrolling interests in property partnerships	(8,332		)	—			(34,723		)	(13		)	—			(43,068		)
Add: Company’s share of net operating income from unconsolidated joint ventures	781			13,246			1,698			—			6,786			22,511
Company’s share of net operating income	$	130,219		$	13,246		$	108,124		$	68,006		$	71,546		$	391,141
% of Grand Totals	33.29		%	3.39		%	27.64		%	17.39		%	18.29		%	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.

For the nine months ended September 30, 2018:

	Boston			Los Angeles			New York			San Francisco			Washington, DC			Total
Rental Revenue: (1)
Office	$	623,084		$	—		$	714,348		$	285,410		$	296,092		$	1,918,934
Residential	4,252			—			—			—			11,026			15,278
Hotel	37,373			—			—			—			—			37,373
Total	664,709			—			714,348			285,410			307,118			1,971,585
% of Grand Totals	33.71		%	—		%	36.23		%	14.48		%	15.58		%	100.00		%
Rental Expenses:
Office	235,560			—			282,395			92,858			106,386			717,199
Residential	2,379			—			—			—			6,530			8,909
Hotel	25,642			—			—			—			—			25,642
Total	263,581			—			282,395			92,858			112,916			751,750
% of Grand Totals	35.06		%	—		%	37.57		%	12.35		%	15.02		%	100.00		%
Net operating income	$	401,128		$	—		$	431,953		$	192,552		$	194,202		$	1,219,835
% of Grand Totals	32.88		%	—		%	35.41		%	15.79		%	15.92		%	100.00		%
Less: Net operating income attributable to noncontrolling interests in property partnerships	(24,879		)	—			(107,420		)	273			—			(132,026		)
Add: Company’s share of net operating income from unconsolidated joint ventures	2,096			27,222			5,065			—			20,415			54,798
Company’s share of net operating income	$	378,345		$	27,222		$	329,598		$	192,825		$	214,617		$	1,142,607
% of Grand Totals	33.11		%	2.38		%	28.85		%	16.88		%	18.78		%	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.