ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Boston Properties, Inc. | Delaware | 04-2473675 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
Boston Properties Limited Partnership | Delaware | 04-3372948 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Securities registered pursuant to Section 12(b) of the Act: | |||
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Boston Properties, Inc. | Common Stock, par value $0.01 per share | BXP | New York Stock Exchange |
Boston Properties, Inc. | Depository Shares Each Representing 1/100th of a share of 5.25% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share | BXP PRB | New York Stock Exchange |
Boston Properties, Inc. | Common Stock, par value $0.01 per share | 154,519,867 |
(Registrant) | (Class) | (Outstanding on May 2, 2019) |
• | enhances investors’ understanding of BXP and BPLP by enabling investors to view the business as a whole in the same manner as management views and operates the business; |
• | eliminates duplicative disclosure and provides a more concise and readable presentation because a substantial portion of the disclosure applies to both BXP and BPLP; and |
• | creates time and cost efficiencies through the preparation of one combined report instead of two separate reports. |
• | Item 1. Financial Statements (unaudited), which includes the following specific disclosures for BXP and BPLP: |
• | Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations includes information specific to each entity, where applicable; and |
• | Item 2. Liquidity and Capital Resources includes separate reconciliations of amounts to each entity’s financial statements, where applicable. |
Page | ||
ITEM 1. | ||
Boston Properties, Inc. | ||
Boston Properties Limited Partnership | ||
Boston Properties, Inc. and Boston Properties Limited Partnership | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 1. | ||
ITEM 1A. | ||
ITEM 2. | ||
ITEM 3. | ||
ITEM 4. | ||
ITEM 5. | ||
ITEM 6. | ||
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
(in thousands, except for share and par value amounts) | ||||||||
ASSETS | ||||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,511,727 and $7,481,015 at March 31, 2019 and December 31, 2018, respectively) | $ | 21,741,265 | $ | 21,649,896 | ||||
Right of use assets - finance leases (amount related to VIEs of $21,000 at March 31, 2019) | 187,292 | — | ||||||
Right of use assets - operating leases | 151,166 | — | ||||||
Less: accumulated depreciation (amounts related to VIEs of $(999,691) and $(965,500) at March 31, 2019 and December 31, 2018, respectively) | (4,962,959 | ) | (4,897,777 | ) | ||||
Total real estate | 17,116,764 | 16,752,119 | ||||||
Cash and cash equivalents (amounts related to VIEs of $254,299 and $296,806 at March 31, 2019 and December 31, 2018, respectively) | 360,091 | 543,359 | ||||||
Cash held in escrows | 72,207 | 95,832 | ||||||
Investments in securities | 32,052 | 28,198 | ||||||
Tenant and other receivables (amounts related to VIEs of $15,782 and $15,519 at March 31, 2019 and December 31, 2018, respectively) | 92,462 | 86,629 | ||||||
Note receivable | 19,593 | 19,468 | ||||||
Related party note receivable | 80,000 | 80,000 | ||||||
Accrued rental income (amounts related to VIEs of $280,952 and $272,466 at March 31, 2019 and December 31, 2018, respectively) | 954,063 | 934,896 | ||||||
Deferred charges, net (amounts related to VIEs of $254,172 and $263,402 at March 31, 2019 and December 31, 2018, respectively) | 666,320 | 678,724 | ||||||
Prepaid expenses and other assets (amounts related to VIEs of $56,027 and $26,513 at March 31, 2019 and December 31, 2018, respectively) | 131,472 | 80,943 | ||||||
Investments in unconsolidated joint ventures | 976,580 | 956,309 | ||||||
Total assets | $ | 20,501,604 | $ | 20,256,477 | ||||
LIABILITIES AND EQUITY | ||||||||
Liabilities: | ||||||||
Mortgage notes payable, net (amounts related to VIEs of $2,926,760 and $2,929,326 at March 31, 2019 and December 31, 2018, respectively) | $ | 2,959,908 | $ | 2,964,572 | ||||
Unsecured senior notes, net | 7,547,043 | 7,544,697 | ||||||
Unsecured line of credit | — | — | ||||||
Unsecured term loan, net | 498,607 | 498,488 | ||||||
Lease liabilities - finance leases (amount related to VIEs of $20,067 at March 31, 2019) | 173,123 | — | ||||||
Lease liabilities - operating leases | 199,653 | — | ||||||
Accounts payable and accrued expenses (amounts related to VIEs of $79,984 and $75,786 at March 31, 2019 and December 31, 2018, respectively) | 328,885 | 276,645 | ||||||
Dividends and distributions payable | 165,352 | 165,114 | ||||||
Accrued interest payable | 89,171 | 89,267 | ||||||
Other liabilities (amounts related to VIEs of $182,729 and $200,344 at March 31, 2019 and December 31, 2018, respectively) | 369,575 | 503,726 | ||||||
Total liabilities | 12,331,317 | 12,042,509 | ||||||
Commitments and contingencies | — | — | ||||||
Equity: | ||||||||
Stockholders’ equity attributable to Boston Properties, Inc.: |
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
(in thousands, except for share and par value amounts) | ||||||||
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | — | — | ||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; | ||||||||
5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 200,000 | 200,000 | ||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,594,386 and 154,537,378 issued and 154,515,486 and 154,458,478 outstanding at March 31, 2019 and December 31, 2018, respectively | 1,545 | 1,545 | ||||||
Additional paid-in capital | 6,414,612 | 6,407,623 | ||||||
Dividends in excess of earnings | (728,083 | ) | (675,534 | ) | ||||
Treasury common stock at cost, 78,900 shares at March 31, 2019 and December 31, 2018 | (2,722 | ) | (2,722 | ) | ||||
Accumulated other comprehensive loss | (48,734 | ) | (47,741 | ) | ||||
Total stockholders’ equity attributable to Boston Properties, Inc. | 5,836,618 | 5,883,171 | ||||||
Noncontrolling interests: | ||||||||
Common units of Boston Properties Limited Partnership | 623,061 | 619,352 | ||||||
Property partnerships | 1,710,608 | 1,711,445 | ||||||
Total equity | 8,170,287 | 8,213,968 | ||||||
Total liabilities and equity | $ | 20,501,604 | $ | 20,256,477 |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands, except for per share amounts) | |||||||
Revenue | |||||||
Lease | $ | 679,251 | $ | — | |||
Base rent | — | 519,507 | |||||
Recoveries from tenants | — | 95,118 | |||||
Parking and other | 24,906 | 26,134 | |||||
Hotel revenue | 8,938 | 9,102 | |||||
Development and management services | 9,277 | 8,405 | |||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Total revenue | 725,767 | 661,151 | |||||
Expenses | |||||||
Operating | |||||||
Rental | 257,517 | 240,329 | |||||
Hotel | 7,863 | 8,073 | |||||
General and administrative | 41,762 | 35,894 | |||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Transaction costs | 460 | 21 | |||||
Depreciation and amortization | 164,594 | 165,797 | |||||
Total expenses | 475,591 | 452,999 | |||||
Other income (expense) | |||||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
(Losses) gains on sales of real estate | (905 | ) | 96,397 | ||||
Interest and other income | 3,753 | 1,648 | |||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | ||||
Impairment loss | (24,038 | ) | — | ||||
Interest expense | (101,009 | ) | (90,220 | ) | |||
Net income | 131,159 | 216,312 | |||||
Net income attributable to noncontrolling interests | |||||||
Noncontrolling interests in property partnerships | (18,830 | ) | (17,234 | ) | |||
Noncontrolling interest—common units of Boston Properties Limited Partnership | (11,599 | ) | (20,432 | ) | |||
Net income attributable to Boston Properties, Inc. | 100,730 | 178,646 | |||||
Preferred dividends | (2,625 | ) | (2,625 | ) | |||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 98,105 | $ | 176,021 | |||
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||
Net income | $ | 0.63 | $ | 1.14 | |||
Weighted average number of common shares outstanding | 154,525 | 154,385 | |||||
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: | |||||||
Net income | $ | 0.63 | $ | 1.14 | |||
Weighted average number of common and common equivalent shares outstanding | 154,844 | 154,705 |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income | $ | 131,159 | $ | 216,312 | |||
Other comprehensive income (loss): | |||||||
Effective portion of interest rate contracts | (2,628 | ) | — | ||||
Amortization of interest rate contracts (1) | 1,666 | 1,666 | |||||
Other comprehensive income (loss) | (962 | ) | 1,666 | ||||
Comprehensive income | 130,197 | 217,978 | |||||
Net income attributable to noncontrolling interests | (30,429 | ) | (37,666 | ) | |||
Other comprehensive income attributable to noncontrolling interests | (31 | ) | (299 | ) | |||
Comprehensive income attributable to Boston Properties, Inc. | $ | 99,737 | $ | 180,013 |
Common Stock | Preferred Stock | Additional Paid-in Capital | Dividends in Excess of Earnings | Treasury Stock, at cost | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Common Units | Noncontrolling Interests - Property Partnerships | Total | ||||||||||||||||||||||||||||||
Shares | Amount | |||||||||||||||||||||||||||||||||||||
Equity, December 31, 2018 | 154,458 | $ | 1,545 | $ | 200,000 | $ | 6,407,623 | $ | (675,534 | ) | $ | (2,722 | ) | $ | (47,741 | ) | $ | 619,352 | $ | 1,711,445 | $ | 8,213,968 | ||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | — | (3,864 | ) | — | — | (445 | ) | (70 | ) | (4,379 | ) | ||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 14 | — | — | 492 | — | — | — | (492 | ) | — | — | |||||||||||||||||||||||||||
Allocated net income for the year | — | — | — | — | 100,730 | — | — | 11,599 | 18,830 | 131,159 | ||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (149,415 | ) | — | — | (17,185 | ) | — | (166,600 | ) | |||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 4 | — | — | 373 | — | — | — | — | — | 373 | ||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | 39 | — | — | 3,059 | — | — | — | 13,410 | — | 16,469 | ||||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 4,387 | 4,387 | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (24,128 | ) | (24,128 | ) | ||||||||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | (2,359 | ) | (269 | ) | — | (2,628 | ) | |||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 1,366 | 156 | 144 | 1,666 | ||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 3,065 | — | — | — | (3,065 | ) | — | — | |||||||||||||||||||||||||||
Equity, March 31, 2019 | 154,515 | $ | 1,545 | $ | 200,000 | $ | 6,414,612 | $ | (728,083 | ) | $ | (2,722 | ) | $ | (48,734 | ) | $ | 623,061 | $ | 1,710,608 | $ | 8,170,287 | ||||||||||||||||
Equity, December 31, 2017 | 154,325 | $ | 1,543 | $ | 200,000 | $ | 6,377,908 | $ | (712,343 | ) | $ | (2,722 | ) | $ | (50,429 | ) | $ | 604,739 | $ | 1,683,760 | $ | 8,102,456 | ||||||||||||||||
Cumulative effect of a change in accounting principle | — | — | — | — | 4,933 | — | — | 563 | — | 5,496 | ||||||||||||||||||||||||||||
Redemption of operating partnership units to common stock | 24 | 1 | — | 831 | — | — | — | (832 | ) | — | — | |||||||||||||||||||||||||||
Allocated net income for the year | — | — | — | — | 178,646 | — | — | 20,432 | 17,234 | 216,312 | ||||||||||||||||||||||||||||
Dividends/distributions declared | — | — | — | — | (126,115 | ) | — | — | (14,351 | ) | — | (140,466 | ) | |||||||||||||||||||||||||
Shares issued pursuant to stock purchase plan | 3 | — | — | 429 | — | — | — | — | — | 429 | ||||||||||||||||||||||||||||
Net activity from stock option and incentive plan | 10 | — | — | (185 | ) | — | — | — | 13,805 | — | 13,620 | |||||||||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | 15,267 | 15,267 | ||||||||||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | — | (30,690 | ) | (30,690 | ) | ||||||||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | — | — | 1,367 | 155 | 144 | 1,666 | ||||||||||||||||||||||||||||
Reallocation of noncontrolling interest | — | — | — | 5,164 | — | — | — | (5,164 | ) | — | — | |||||||||||||||||||||||||||
Equity, March 31, 2018 | 154,362 | $ | 1,544 | $ | 200,000 | $ | 6,384,147 | $ | (654,879 | ) | $ | (2,722 | ) | $ | (49,062 | ) | $ | 619,347 | $ | 1,685,715 | $ | 8,184,090 |
For the three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 131,159 | $ | 216,312 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 164,594 | 165,797 | |||||
Amortization of right of use assets - operating leases | 605 | — | |||||
Impairment loss | 24,038 | — | |||||
Non-cash compensation expense | 15,050 | 14,772 | |||||
Income from unconsolidated joint ventures | (213 | ) | (461 | ) | |||
Distributions of net cash flow from operations of unconsolidated joint ventures | 2,650 | 847 | |||||
(Gains) losses from investments in securities | (2,969 | ) | 126 | ||||
Non-cash portion of interest expense | 5,447 | 5,299 | |||||
Losses (gains) on sales of real estate | 905 | (96,397 | ) | ||||
Change in assets and liabilities: | |||||||
Tenant and other receivables, net | (14,000 | ) | 22,790 | ||||
Note receivable | (125 | ) | — | ||||
Accrued rental income, net | (15,570 | ) | (26,319 | ) | |||
Prepaid expenses and other assets | (68,554 | ) | (66,968 | ) | |||
Lease liabilities - operating leases | 370 | — | |||||
Accounts payable and accrued expenses | 258 | (13,913 | ) | ||||
Accrued interest payable | (160 | ) | 12,399 | ||||
Other liabilities | (17,831 | ) | 23,089 | ||||
Tenant leasing costs | (18,420 | ) | (31,595 | ) | |||
Total adjustments | 76,075 | 9,466 | |||||
Net cash provided by operating activities | 207,234 | 225,778 | |||||
Cash flows from investing activities: | |||||||
Acquisition of real estate | (43,061 | ) | — | ||||
Construction in progress | (85,632 | ) | (150,060 | ) | |||
Building and other capital improvements | (32,719 | ) | (53,550 | ) | |||
Tenant improvements | (54,242 | ) | (47,157 | ) | |||
Proceeds from sales of real estate | 20,019 | 116,120 | |||||
Capital contributions to unconsolidated joint ventures | (26,995 | ) | (48,823 | ) | |||
Investments in securities, net | (885 | ) | (318 | ) | |||
Net cash used in investing activities | (223,515 | ) | (183,788 | ) | |||
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Cash flows from financing activities: | |||||||
Repayments of mortgage notes payable | (5,645 | ) | (5,333 | ) | |||
Borrowings on unsecured line of credit | 50,000 | 260,000 | |||||
Repayments of unsecured line of credit | (50,000 | ) | (190,000 | ) | |||
Payments on finance lease obligations | (470 | ) | — | ||||
Payments on capital lease obligations | — | (3 | ) | ||||
Payments on real estate financing transactions | — | (444 | ) | ||||
Deferred financing costs | (186 | ) | (16 | ) | |||
Net proceeds from equity transactions | 1,792 | (723 | ) | ||||
Dividends and distributions | (166,362 | ) | (140,288 | ) | |||
Contributions from noncontrolling interests in property partnerships | 4,387 | 15,267 | |||||
Distributions to noncontrolling interests in property partnerships | (24,128 | ) | (30,690 | ) | |||
Net cash used in financing activities | (190,612 | ) | (92,230 | ) | |||
Net decrease in cash and cash equivalents and cash held in escrows | (206,893 | ) | (50,240 | ) | |||
Cash and cash equivalents and cash held in escrows, beginning of period | 639,191 | 505,369 | |||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 432,298 | $ | 455,129 | |||
Reconciliation of cash and cash equivalents and cash held in escrows: | |||||||
Cash and cash equivalents, beginning of period | $ | 543,359 | $ | 434,767 | |||
Cash held in escrows, beginning of period | 95,832 | 70,602 | |||||
Cash and cash equivalents and cash held in escrows, beginning of period | $ | 639,191 | $ | 505,369 | |||
Cash and cash equivalents, end of period | $ | 360,091 | $ | 294,571 | |||
Cash held in escrows, end of period | 72,207 | 160,558 | |||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 432,298 | $ | 455,129 | |||
Supplemental disclosures: | |||||||
Cash paid for interest | $ | 107,094 | $ | 89,412 | |||
Interest capitalized | $ | 11,813 | $ | 17,378 | |||
Non-cash investing and financing activities: | |||||||
Write-off of fully depreciated real estate | $ | (31,640 | ) | $ | (29,609 | ) | |
Additions to real estate included in accounts payable and accrued expenses | $ | 49,689 | $ | 35,245 | |||
Real estate acquired through finance lease | $ | 122,563 | $ | — | |||
Dividends and distributions declared but not paid | $ | 165,352 | $ | 139,218 | |||
Conversions of noncontrolling interests to stockholders’ equity | $ | 492 | $ | 832 | |||
Issuance of restricted securities to employees | $ | 37,428 | $ | 36,433 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
(in thousands, except for unit amounts) | ||||||||
ASSETS | ||||||||
Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,511,727 and $7,481,015 at March 31, 2019 and December 31, 2018, respectively) | $ | 21,345,264 | $ | 21,251,540 | ||||
Right of use assets - finance leases (amount related to VIEs of $21,000 at March 31, 2019) | 187,292 | — | ||||||
Right of use assets - operating leases | 151,166 | — | ||||||
Less: accumulated depreciation (amounts related to VIEs of $(999,691) and $(965,500) at March 31, 2019 and December 31, 2018, respectively) | (4,864,334 | ) | (4,800,475 | ) | ||||
Total real estate | 16,819,388 | 16,451,065 | ||||||
Cash and cash equivalents (amounts related to VIEs of $254,299 and $296,806 at March 31, 2019 and December 31, 2018, respectively) | 360,091 | 543,359 | ||||||
Cash held in escrows | 72,207 | 95,832 | ||||||
Investments in securities | 32,052 | 28,198 | ||||||
Tenant and other receivables (amounts related to VIEs of $15,782 and $15,519 at March 31, 2019 and December 31, 2018, respectively) | 92,462 | 86,629 | ||||||
Note receivable | 19,593 | 19,468 | ||||||
Related party note receivable | 80,000 | 80,000 | ||||||
Accrued rental income (amounts related to VIEs of $280,952 and $272,466 at March 31, 2019 and December 31, 2018, respectively) | 954,063 | 934,896 | ||||||
Deferred charges, net (amounts related to VIEs of $254,172 and $263,402 at March 31, 2019 and December 31, 2018, respectively) | 666,320 | 678,724 | ||||||
Prepaid expenses and other assets (amounts related to VIEs of $56,027 and $26,513 at March 31, 2019 and December 31, 2018, respectively) | 131,472 | 80,943 | ||||||
Investments in unconsolidated joint ventures | 976,580 | 956,309 | ||||||
Total assets | $ | 20,204,228 | $ | 19,955,423 | ||||
LIABILITIES AND CAPITAL | ||||||||
Liabilities: | ||||||||
Mortgage notes payable, net (amounts related to VIEs of $2,926,760 and $2,929,326 at March 31, 2019 and December 31, 2018, respectively) | $ | 2,959,908 | $ | 2,964,572 | ||||
Unsecured senior notes, net | 7,547,043 | 7,544,697 | ||||||
Unsecured line of credit | — | — | ||||||
Unsecured term loan, net | 498,607 | 498,488 | ||||||
Lease liabilities - finance leases (amount related to VIEs of $20,067 at March 31, 2019) | 173,123 | — | ||||||
Lease liabilities - operating leases | 199,653 | — | ||||||
Accounts payable and accrued expenses (amounts related to VIEs of $79,984 and $75,786 at March 31, 2019 and December 31, 2018, respectively) | 328,885 | 276,645 | ||||||
Distributions payable | 165,352 | 165,114 | ||||||
Accrued interest payable | 89,171 | 89,267 | ||||||
Other liabilities (amounts related to VIEs of $182,729 and $200,344 at March 31, 2019 and December 31, 2018, respectively) | 369,575 | 503,726 | ||||||
Total liabilities | 12,331,317 | 12,042,509 | ||||||
Commitments and contingencies | — | — | ||||||
Noncontrolling interests: | ||||||||
Redeemable partnership units—16,844,947 and 16,783,558 common units and 1,187,919 and 991,577 long term incentive units outstanding at redemption value at March 31, 2019 and December 31, 2018, respectively | 2,414,240 | 2,000,591 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, 2019 | December 31, 2018 | |||||||
(in thousands, except for unit amounts) | ||||||||
Capital: | ||||||||
5.25% Series B cumulative redeemable preferred units, liquidation preference $2,500 per unit, 80,000 units issued and outstanding at March 31, 2019 and December 31, 2018 | 193,623 | 193,623 | ||||||
Boston Properties Limited Partnership partners’ capital—1,725,484 and 1,722,336 general partner units and 152,790,002 and 152,736,142 limited partner units outstanding at March 31, 2019 and December 31, 2018, respectively | 3,603,174 | 4,054,996 | ||||||
Accumulated other comprehensive loss | (48,734 | ) | (47,741 | ) | ||||
Total partners' capital | 3,748,063 | 4,200,878 | ||||||
Noncontrolling interests in property partnerships | 1,710,608 | 1,711,445 | ||||||
Total capital | 5,458,671 | 5,912,323 | ||||||
Total liabilities and capital | $ | 20,204,228 | $ | 19,955,423 |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands, except for per unit amounts) | |||||||
Revenue | |||||||
Lease | $ | 679,251 | $ | — | |||
Base rent | — | 519,507 | |||||
Recoveries from tenants | — | 95,118 | |||||
Parking and other | 24,906 | 26,134 | |||||
Hotel revenue | 8,938 | 9,102 | |||||
Development and management services | 9,277 | 8,405 | |||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Total revenue | 725,767 | 661,151 | |||||
Expenses | |||||||
Operating | |||||||
Rental | 257,517 | 240,329 | |||||
Hotel | 7,863 | 8,073 | |||||
General and administrative | 41,762 | 35,894 | |||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Transaction costs | 460 | 21 | |||||
Depreciation and amortization | 162,682 | 163,853 | |||||
Total expenses | 473,679 | 451,055 | |||||
Other income (expense) | |||||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
(Losses) gains on sales of real estate | (905 | ) | 98,907 | ||||
Interest and other income | 3,753 | 1,648 | |||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | ||||
Impairment loss | (22,272 | ) | — | ||||
Interest expense | (101,009 | ) | (90,220 | ) | |||
Net income | 134,837 | 220,766 | |||||
Net income attributable to noncontrolling interests | |||||||
Noncontrolling interests in property partnerships | (18,830 | ) | (17,234 | ) | |||
Net income attributable to Boston Properties Limited Partnership | 116,007 | 203,532 | |||||
Preferred distributions | (2,625 | ) | (2,625 | ) | |||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 113,382 | $ | 200,907 | |||
Basic earnings per common unit attributable to Boston Properties Limited Partnership common unitholders: | |||||||
Net income | $ | 0.66 | $ | 1.17 | |||
Weighted average number of common units outstanding | 172,131 | 171,867 | |||||
Diluted earnings per common unit attributable to Boston Properties Limited Partnership common unitholders: | |||||||
Net income | $ | 0.66 | $ | 1.17 | |||
Weighted average number of common and common equivalent units outstanding | 172,450 | 172,187 |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income | $ | 134,837 | $ | 220,766 | |||
Other comprehensive income (loss): | |||||||
Effective portion of interest rate contracts | (2,628 | ) | — | ||||
Amortization of interest rate contracts (1) | 1,666 | 1,666 | |||||
Other comprehensive income (loss) | (962 | ) | 1,666 | ||||
Comprehensive income | 133,875 | 222,432 | |||||
Comprehensive income attributable to noncontrolling interests | (18,974 | ) | (17,378 | ) | |||
Comprehensive income attributable to Boston Properties Limited Partnership | $ | 114,901 | $ | 205,054 |
Units | Capital | ||||||||||||||||||||||||||||
General Partner | Limited Partner | Partners' Capital (General and Limited Partners) | Preferred units | Accumulated Other Comprehensive Loss | Noncontrolling Interests - Property Partnerships | Total Capital | Noncontrolling interests - Redeemable Partnership Units | ||||||||||||||||||||||
Equity, December 31, 2018 | 1,722 | 152,736 | $ | 4,054,996 | $ | 193,623 | $ | (47,741 | ) | $ | 1,711,445 | $ | 5,912,323 | $ | 2,000,591 | ||||||||||||||
Cumulative effect of a change in accounting principle | — | — | (3,864 | ) | — | — | (70 | ) | (3,934 | ) | (445 | ) | |||||||||||||||||
Contributions | 2 | 41 | 4,820 | — | — | — | 4,820 | 34,400 | |||||||||||||||||||||
Allocated net income for the year | — | — | 101,783 | 2,625 | — | 18,830 | 123,238 | 11,599 | |||||||||||||||||||||
Distributions | — | — | (146,790 | ) | (2,625 | ) | — | — | (149,415 | ) | (17,185 | ) | |||||||||||||||||
Unearned compensation | — | — | (1,388 | ) | — | — | — | (1,388 | ) | (20,990 | ) | ||||||||||||||||||
Conversion of redeemable partnership units | 1 | 13 | 492 | — | — | — | 492 | (492 | ) | ||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | (406,875 | ) | — | — | — | (406,875 | ) | 406,875 | |||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | (2,359 | ) | — | (2,359 | ) | (269 | ) | ||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 1,366 | 144 | 1,510 | 156 | |||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 4,387 | 4,387 | — | |||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (24,128 | ) | (24,128 | ) | — | |||||||||||||||||||
Equity, March 31, 2019 | 1,725 | 152,790 | $ | 3,603,174 | $ | 193,623 | $ | (48,734 | ) | $ | 1,710,608 | $ | 5,458,671 | $ | 2,414,240 | ||||||||||||||
Equity, December 31, 2017 | 1,720 | 152,606 | $ | 3,664,436 | $ | 193,623 | $ | (50,429 | ) | $ | 1,683,760 | $ | 5,491,390 | $ | 2,292,263 | ||||||||||||||
Cumulative effect of a change in accounting principle | — | — | 4,933 | — | — | — | 4,933 | 563 | |||||||||||||||||||||
Contributions | 1 | 11 | 1,452 | — | — | — | 1,452 | 34,258 | |||||||||||||||||||||
Allocated net income for the year | — | — | 180,475 | 2,625 | — | 17,234 | 200,334 | 20,432 | |||||||||||||||||||||
Distributions | — | — | (123,490 | ) | (2,625 | ) | — | — | (126,115 | ) | (14,351 | ) | |||||||||||||||||
Unearned compensation | — | — | (1,208 | ) | — | — | — | (1,208 | ) | (20,453 | ) | ||||||||||||||||||
Conversion of redeemable partnership units | 1 | 23 | 832 | — | — | — | 832 | (832 | ) | ||||||||||||||||||||
Adjustment to reflect redeemable partnership units at redemption value | — | — | 115,432 | — | — | — | 115,432 | (115,432 | ) | ||||||||||||||||||||
Effective portion of interest rate contracts | — | — | — | — | — | — | — | — | |||||||||||||||||||||
Amortization of interest rate contracts | — | — | — | — | 1,367 | 144 | 1,511 | 155 | |||||||||||||||||||||
Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | 15,267 | 15,267 | — | |||||||||||||||||||||
Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | (30,690 | ) | (30,690 | ) | — | |||||||||||||||||||
Equity, March 31, 2018 | 1,722 | 152,640 | $ | 3,842,862 | $ | 193,623 | $ | (49,062 | ) | $ | 1,685,715 | $ | 5,673,138 | $ | 2,196,603 |
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Cash flows from operating activities: | |||||||
Net income | $ | 134,837 | $ | 220,766 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 162,682 | 163,853 | |||||
Amortization of right of use assets - operating leases | 605 | — | |||||
Impairment loss | 22,272 | — | |||||
Non-cash compensation expense | 15,050 | 14,772 | |||||
Income from unconsolidated joint ventures | (213 | ) | (461 | ) | |||
Distributions of net cash flow from operations of unconsolidated joint ventures | 2,650 | 847 | |||||
(Gains) losses from investments in securities | (2,969 | ) | 126 | ||||
Non-cash portion of interest expense | 5,447 | 5,299 | |||||
Losses (gains) on sales of real estate | 905 | (98,907 | ) | ||||
Change in assets and liabilities: | |||||||
Tenant and other receivables, net | (14,000 | ) | 22,790 | ||||
Note receivable | (125 | ) | — | ||||
Accrued rental income, net | (15,570 | ) | (26,319 | ) | |||
Prepaid expenses and other assets | (68,554 | ) | (66,968 | ) | |||
Lease liabilities - operating leases | 370 | — | |||||
Accounts payable and accrued expenses | 258 | (13,913 | ) | ||||
Accrued interest payable | (160 | ) | 12,399 | ||||
Other liabilities | (17,831 | ) | 23,089 | ||||
Tenant leasing costs | (18,420 | ) | (31,595 | ) | |||
Total adjustments | 72,397 | 5,012 | |||||
Net cash provided by operating activities | 207,234 | 225,778 | |||||
Cash flows from investing activities: | |||||||
Acquisition of real estate | (43,061 | ) | — | ||||
Construction in progress | (85,632 | ) | (150,060 | ) | |||
Building and other capital improvements | (32,719 | ) | (53,550 | ) | |||
Tenant improvements | (54,242 | ) | (47,157 | ) | |||
Proceeds from sales of real estate | 20,019 | 116,120 | |||||
Capital contributions to unconsolidated joint ventures | (26,995 | ) | (48,823 | ) | |||
Investments in securities, net | (885 | ) | (318 | ) | |||
Net cash used in investing activities | (223,515 | ) | (183,788 | ) | |||
BOSTON PROPERTIES LIMITED PARTNERSHIP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||
For the three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Cash flows from financing activities: | |||||||
Repayments of mortgage notes payable | (5,645 | ) | (5,333 | ) | |||
Borrowings on unsecured line of credit | 50,000 | 260,000 | |||||
Repayments of unsecured line of credit | (50,000 | ) | (190,000 | ) | |||
Payments on finance lease obligations | (470 | ) | — | ||||
Payments on capital lease obligations | — | (3 | ) | ||||
Payments on real estate financing transaction | — | (444 | ) | ||||
Deferred financing costs | (186 | ) | (16 | ) | |||
Net proceeds from equity transactions | 1,792 | (723 | ) | ||||
Distributions | (166,362 | ) | (140,288 | ) | |||
Contributions from noncontrolling interests in property partnerships | 4,387 | 15,267 | |||||
Distributions to noncontrolling interests in property partnerships | (24,128 | ) | (30,690 | ) | |||
Net cash used in financing activities | (190,612 | ) | (92,230 | ) | |||
Net decrease in cash and cash equivalents and cash held in escrows | (206,893 | ) | (50,240 | ) | |||
Cash and cash equivalents and cash held in escrows, beginning of period | 639,191 | 505,369 | |||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 432,298 | $ | 455,129 | |||
Reconciliation of cash and cash equivalents and cash held in escrows: | |||||||
Cash and cash equivalents, beginning of period | $ | 543,359 | $ | 434,767 | |||
Cash held in escrows, beginning of period | 95,832 | 70,602 | |||||
Cash and cash equivalents and cash held in escrows, beginning of period | $ | 639,191 | $ | 505,369 | |||
Cash and cash equivalents, end of period | $ | 360,091 | $ | 294,571 | |||
Cash held in escrows, end of period | 72,207 | 160,558 | |||||
Cash and cash equivalents and cash held in escrows, end of period | $ | 432,298 | $ | 455,129 | |||
Supplemental disclosures: | |||||||
Cash paid for interest | $ | 107,094 | $ | 89,412 | |||
Interest capitalized | $ | 11,813 | $ | 17,378 | |||
Non-cash investing and financing activities: | |||||||
Write-off of fully depreciated real estate | $ | (31,640 | ) | $ | (29,609 | ) | |
Additions to real estate included in accounts payable and accrued expenses | $ | 49,689 | $ | 35,245 | |||
Real estate acquired through finance lease | $ | 122,563 | $ | — | |||
Distributions declared but not paid | $ | 165,352 | $ | 139,218 | |||
Conversions of redeemable partnership units to partners’ capital | $ | 492 | $ | 832 | |||
Issuance of restricted securities to employees | $ | 37,428 | $ | 36,433 |
• | common units of partnership interest (also referred to as “OP Units”), |
• | long term incentive units of partnership interest (also referred to as “LTIP Units”), and |
• | preferred units of partnership interest (also referred to as “Preferred Units”). |
• | 177 office properties (including nine properties under construction/redevelopment); |
• | twelve retail properties; |
• | six residential properties (including two properties under construction); and |
• | one hotel. |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||
Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||
Related party note receivable | $ | 80,000 | $ | 80,060 | $ | 80,000 | $ | 80,000 | |||||||||||
Note receivable | 19,593 | 17,723 | 19,468 | 19,468 | |||||||||||||||
$ | 99,593 | $ | 97,783 | $ | 99,468 | $ | 99,468 | ||||||||||||
Mortgage notes payable, net | $ | 2,959,908 | $ | 2,948,057 | $ | 2,964,572 | $ | 2,903,925 | |||||||||||
Unsecured senior notes, net | 7,547,043 | 7,584,456 | 7,544,697 | 7,469,338 | |||||||||||||||
Unsecured line of credit | — | — | — | — | |||||||||||||||
Unsecured term loan, net | 498,607 | 500,728 | 498,488 | 500,783 | |||||||||||||||
Total | $ | 11,005,558 | $ | 11,033,241 | $ | 11,007,757 | $ | 10,874,046 |
March 31, 2019 | December 31, 2018 | ||||||
Land | $ | 5,061,532 | $ | 5,072,568 | |||
Right of use assets - finance leases | 187,292 | — | |||||
Right of use assets - operating leases | 151,166 | — | |||||
Land held for future development (1) | 258,221 | 200,498 | |||||
Buildings and improvements | 13,286,605 | 13,356,751 | |||||
Tenant improvements | 2,444,358 | 2,396,932 | |||||
Furniture, fixtures and equipment | 43,080 | 44,351 | |||||
Construction in progress | 647,469 | 578,796 | |||||
Total | 22,079,723 | 21,649,896 | |||||
Less: Accumulated depreciation | (4,962,959 | ) | (4,897,777 | ) | |||
$ | 17,116,764 | $ | 16,752,119 |
(1) | Includes pre-development costs. |
March 31, 2019 | December 31, 2018 | ||||||
Land | $ | 4,961,028 | $ | 4,971,475 | |||
Right of use assets - finance leases | 187,292 | — | |||||
Right of use assets - operating leases | 151,166 | — | |||||
Land held for future development (1) | 258,221 | 200,498 | |||||
Buildings and improvements | 12,991,108 | 13,059,488 | |||||
Tenant improvements | 2,444,358 | 2,396,932 | |||||
Furniture, fixtures and equipment | 43,080 | 44,351 | |||||
Construction in progress | 647,469 | 578,796 | |||||
Total | 21,683,722 | 21,251,540 | |||||
Less: Accumulated depreciation | (4,864,334 | ) | (4,800,475 | ) | |||
$ | 16,819,388 | $ | 16,451,065 |
(1) | Includes pre-development costs. |
Period from January 24, 2019 through December 31, 2019 | $ | 17,918 | |
2020 | 109,460 | ||
Total expected minimum lease payments | 127,378 | ||
Interest portion | (4,815 | ) | |
Present value of expected net lease payments | $ | 122,563 |
• | The interpolated rates from yields on outstanding U.S. Treasury issuances for up to 30 years and for years 31 and beyond, longer term publicly traded educational institution debt issued by high credit quality educational institutions with maturity dates up to 2116, |
• | Observable mortgage rates spread over U.S. Treasury issuances, and |
• | Unlevered property yields and discount rates. |
Three months ended March 31, 2019 | |||
Lease costs | |||
Operating lease costs | $ | 3,677 | |
Finance lease costs | |||
Amortization of right of use asset (1) | $ | 16 | |
Interest on lease liabilities (2) | $ | 12 | |
March 31, 2019 | |||
Other information | |||
Weighted-average remaining lease term (in years) | |||
Operating leases | 52 | ||
Finance leases | 5 | ||
Weighted-average discount rate | |||
Operating leases | 5.7 | % | |
Finance leases | 4.1 | % |
(1) | The finance leases relate to either land, building or assets that remain in development. The Company's policy is not to depreciate finance lease assets related to land because it is assumed to have an indefinite life. For assets under development, depreciation may commence once the asset is placed in-service and depreciation would be recognized in accordance with the Company's policy. |
(2) | Three of the finance leases relate to assets under development and as such the entire interest amount was capitalized. |
Years Ending December 31, | (in thousands) | ||
2019 | $ | 11,425 | |
2020 | 18,425 | ||
2021 | 25,310 | ||
2022 | 8,894 | ||
2023 | 9,084 | ||
Thereafter | 567,232 |
Years Ending December 31, | (in thousands) | ||
2019 | $ | 1,441 | |
2020 | 12,682 | ||
2021 | 2,123 | ||
2022 | 1,253 | ||
2023 | 944 | ||
Thereafter | 73,241 | ||
Total expected minimum lease payments | 91,684 | ||
Interest portion | (27,497 | ) | |
Present value of expected net minimum lease payments | $ | 64,187 |
Operating | Finance (1) | ||||||
April 1, 2019 - December 31, 2019 | $ | 7,317 | $ | 4,401 | |||
2020 | 17,488 | 122,070 | |||||
2021 | 25,403 | 2,130 | |||||
2022 | 11,376 | 1,121 | |||||
2023 | 9,084 | 944 | |||||
Thereafter | 567,232 | 73,241 | |||||
Total lease payments | 637,900 | 203,907 | |||||
Less: interest portion | (438,247 | ) | (30,784 | ) | |||
Present value of lease payments | $ | 199,653 | $ | 173,123 |
(1) | Finance lease payments in 2020 and 2024 include approximately $119.8 million and $38.7 million, respectively, related to purchase options that the Company is reasonably certain that it will exercise. |
Lease Revenue | Three months ended March 31, 2019 | ||
Fixed Contractual Payments | $ | 553,986 | |
Variable lease payments | 125,265 | ||
$ | 679,251 |
Years Ending December 31, | (in thousands) | ||
2019 | $ | 2,088,171 | |
2020 | 2,106,963 | ||
2021 | 2,015,031 | ||
2022 | 1,838,699 | ||
2023 | 1,736,636 | ||
Thereafter | 12,295,464 |
(in thousands) | |||
April 1, 2019 - December 31, 2019 | $ | 1,573,871 | |
2020 | 2,147,464 | ||
2021 | 2,076,969 | ||
2022 | 1,910,362 | ||
2023 | 1,811,936 | ||
Thereafter | 12,821,229 |
Nominal % Ownership | Carrying Value of Investment (1) | ||||||||||||
Entity | Properties | March 31, 2019 | December 31, 2018 | ||||||||||
(in thousands) | |||||||||||||
Square 407 Limited Partnership | Market Square North | 50.0 | % | $ | (5,948 | ) | $ | (6,424 | ) | ||||
The Metropolitan Square Associates LLC | Metropolitan Square | 20.0 | % | 3,146 | 2,644 | ||||||||
BP/CRF 901 New York Avenue LLC | 901 New York Avenue | 25.0 | % | (2) | (13,215 | ) | (13,640 | ) | |||||
WP Project Developer LLC | Wisconsin Place Land and Infrastructure | 33.3 | % | (3) | 37,821 | 38,214 | |||||||
Annapolis Junction NFM LLC | Annapolis Junction | 50.0 | % | (4) | 25,284 | 25,268 | |||||||
540 Madison Venture LLC | 540 Madison Avenue | 60.0 | % | 66,452 | 66,391 | ||||||||
500 North Capitol Venture LLC | 500 North Capitol Street, NW | 30.0 | % | (4,781 | ) | (5,026 | ) | ||||||
501 K Street LLC | 1001 6th Street | 50.0 | % | (5) | 42,500 | 42,557 | |||||||
Podium Developer LLC | The Hub on Causeway - Podium | 50.0 | % | 69,849 | 69,302 | ||||||||
Residential Tower Developer LLC | The Hub on Causeway - Residential | 50.0 | % | 47,795 | 47,505 | ||||||||
Hotel Tower Developer LLC | The Hub on Causeway - Hotel Air Rights | 50.0 | % | 3,343 | 3,022 | ||||||||
Office Tower Developer LLC | 100 Causeway Street | 50.0 | % | (6) | 46,881 | 23,804 | |||||||
1265 Main Office JV LLC | 1265 Main Street | 50.0 | % | 4,030 | 3,918 | ||||||||
BNY Tower Holdings LLC | Dock 72 | 50.0 | % | 83,291 | 82,520 | ||||||||
CA-Colorado Center Limited Partnership | Colorado Center | 50.0 | % | 252,762 | 253,495 | ||||||||
7750 Wisconsin Avenue LLC | 7750 Wisconsin Avenue | 50.0 | % | (6) | 70,147 | 69,724 | |||||||
BP-M 3HB Venture LLC | 3 Hudson Boulevard | 25.0 | % | 47,480 | 46,993 | ||||||||
SMBP Venture LP | Santa Monica Business Park | 55.0 | % | 175,799 | 180,952 | ||||||||
$ | 952,636 | $ | 931,219 |
(1) | Investments with deficit balances aggregating approximately $23.9 million and $25.1 million at March 31, 2019 and December 31, 2018, respectively, have been reflected within Other Liabilities in the Company’s Consolidated Balance Sheets. |
(2) | The Company’s economic ownership has increased based on the achievement of certain return thresholds. |
(3) | The Company’s wholly-owned subsidiary that owns Wisconsin Place Office also owns a 33.3% interest in the joint venture entity that owns the land, parking garage and infrastructure of the project. |
(4) | The joint venture owns three in-service buildings and two undeveloped land parcels. |
(5) | Under the joint venture agreement for this land parcel, the partner will be entitled to up to two additional payments from the venture based on increases in total entitled square footage of the project above 520,000 square feet and achieving certain project returns at stabilization. |
(6) | This entity is a VIE (See Note 2). |
March 31, 2019 | December 31, 2018 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Real estate and development in process, net (1) | $ | 3,660,439 | $ | 3,545,906 | |||
Other assets | 534,534 | 543,512 | |||||
Total assets | $ | 4,194,973 | $ | 4,089,418 | |||
LIABILITIES AND MEMBERS’/PARTNERS’ EQUITY | |||||||
Mortgage and notes payable, net | $ | 2,074,473 | $ | 2,017,609 | |||
Other liabilities (2) | 604,280 | 582,006 | |||||
Members’/Partners’ equity | 1,516,220 | 1,489,803 | |||||
Total liabilities and members’/partners’ equity | $ | 4,194,973 | $ | 4,089,418 | |||
Company’s share of equity | $ | 642,564 | $ | 622,498 | |||
Basis differentials (3) | 310,072 | 308,721 | |||||
Carrying value of the Company’s investments in unconsolidated joint ventures (4) | $ | 952,636 | $ | 931,219 |
(1) | At March 31, 2019, this amount includes right of use assets - finance leases and right of use assets - operating leases totaling approximately $248.9 million and $12.7 million, respectively. |
(2) | At March 31, 2019, this amount includes lease liabilities - finance leases and lease liabilities - operating leases totaling approximately $393.9 million and $17.2 million, respectively. |
(3) | This amount represents the aggregate difference between the Company’s historical cost basis and the basis reflected at the joint venture level, which is typically amortized over the life of the related assets and liabilities. Basis differentials result from impairments of investments, acquisitions through joint ventures with no change in control and upon the transfer of assets that were previously owned by the Company into a joint venture. In addition, certain acquisition, transaction and other costs may not be reflected in the net assets at the joint venture level. At March 31, 2019 and December 31, 2018, there was an aggregate basis differential of approximately $315.3 million and $316.7 million, respectively, between the carrying value of the Company’s investment in the joint venture that owns Colorado Center and the joint venture’s basis in the assets and liabilities, which differential (excluding land) shall be amortized over the remaining lives of the related assets and liabilities. |
(4) | Investments with deficit balances aggregating approximately $23.9 million and $25.1 million at March 31, 2019 and December 31, 2018, respectively, have been reflected within Other Liabilities in the Company’s Consolidated Balance Sheets. |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Total revenue (1) | $ | 82,955 | $ | 56,486 | |||
Expenses | |||||||
Operating | 30,499 | 22,849 | |||||
Depreciation and amortization | 28,646 | 14,725 | |||||
Total expenses | 59,145 | 37,574 | |||||
Other expense | |||||||
Interest expense | 20,757 | 14,424 | |||||
Net income | $ | 3,053 | $ | 4,488 | |||
Company’s share of net income | $ | 1,584 | $ | 1,826 | |||
Basis differential (2) | (1,371 | ) | (1,365 | ) | |||
Income from unconsolidated joint ventures | $ | 213 | $ | 461 |
(1) | Includes straight-line rent adjustments of approximately $5.8 million and $1.8 million for the three months ended March 31, 2019 and 2018, respectively. |
(2) | Includes straight-line rent adjustments of approximately $0.5 million and $0.7 million for the three months ended March 31, 2019 and 2018, respectively. Also includes net above-/below-market rent adjustments of approximately $0.4 million and $0.4 million for the three months ended March 31, 2019 and 2018, respectively. |
Record Date | Payment Date | Distributions per OP Unit and LTIP Unit | Distributions per MYLTIP Unit | |||||||
March 29, 2019 | April 30, 2019 | $0.95 | $0.095 | |||||||
December 31, 2018 | January 30, 2019 | $0.95 | $0.095 |
Record Date | Payment Date | Distributions per OP Unit and LTIP Unit | Distributions per MYLTIP Unit | |||||||
March 29, 2018 | April 30, 2018 | $0.80 | $0.080 | |||||||
December 31, 2017 | January 30, 2018 | $0.80 | $0.080 |
Record Date | Payment Date | Dividend (Per Share) | Distribution (Per Unit) | |||||||
March 29, 2019 | April 30, 2019 | $0.95 | $0.95 | |||||||
December 31, 2018 | January 30, 2019 | $0.95 | $0.95 | |||||||
March 29, 2018 | April 30, 2018 | $0.80 | $0.80 | |||||||
December 31, 2017 | January 30, 2018 | $0.80 | $0.80 |
Record Date | Payment Date | Dividend (Per Share) | ||||
May 3, 2019 | May 15, 2019 | $32.8125 | ||||
February 4, 2019 | February 15, 2019 | $32.8125 | ||||
May 4, 2018 | May 15, 2018 | $32.8125 | ||||
February 2, 2018 | February 15, 2018 | $32.8125 |
Three months ended March 31, 2019 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
(in thousands, except for per share amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 98,105 | 154,525 | $ | 0.63 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 319 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 98,105 | 154,844 | $ | 0.63 | |||||
Three months ended March 31, 2018 | ||||||||||
Income (Numerator) | Shares (Denominator) | Per Share Amount | ||||||||
(in thousands, except for per share amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 176,021 | 154,385 | $ | 1.14 | |||||
Allocation of undistributed earnings to participating securities | (127 | ) | — | — | ||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 175,894 | 154,385 | $ | 1.14 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 320 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 175,894 | 154,705 | $ | 1.14 |
Three months ended March 31, 2019 | ||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||
(in thousands, except for per unit amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 113,382 | 172,131 | $ | 0.66 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 319 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 113,382 | 172,450 | $ | 0.66 | |||||
Three months ended March 31, 2018 | ||||||||||
Income (Numerator) | Units (Denominator) | Per Unit Amount | ||||||||
(in thousands, except for per unit amounts) | ||||||||||
Basic Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 200,907 | 171,867 | $ | 1.17 | |||||
Allocation of undistributed earnings to participating securities | (141 | ) | — | — | ||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 200,766 | 171,867 | $ | 1.17 | |||||
Effect of Dilutive Securities: | ||||||||||
Stock Based Compensation | — | 320 | — | |||||||
Diluted Earnings: | ||||||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 200,766 | 172,187 | $ | 1.17 | |||||
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 98,105 | $ | 176,021 | |||
Add: | |||||||
Preferred dividends | 2,625 | 2,625 | |||||
Noncontrolling interest—common units of Boston Properties Limited Partnership | 11,599 | 20,432 | |||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Interest expense | 101,009 | 90,220 | |||||
Impairment loss | 24,038 | — | |||||
Net operating income from unconsolidated joint ventures | 25,349 | 16,060 | |||||
Depreciation and amortization expense | 164,594 | 165,797 | |||||
Transaction costs | 460 | 21 | |||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
General and administrative expense | 41,762 | 35,894 | |||||
Less: | |||||||
Net operating income attributable to noncontrolling interests in property partnerships | 47,085 | 45,909 | |||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | ||||
Interest and other income | 3,753 | 1,648 | |||||
(Losses) gains on sales of real estate | (905 | ) | 96,397 | ||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Development and management services revenue | 9,277 | 8,405 | |||||
Company's share of Net Operating Income | $ | 425,979 | $ | 371,610 |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 113,382 | $ | 200,907 | |||
Add: | |||||||
Preferred distributions | 2,625 | 2,625 | |||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Interest expense | 101,009 | 90,220 | |||||
Impairment loss | 22,272 | — | |||||
Net operating income from unconsolidated joint ventures | 25,349 | 16,060 | |||||
Depreciation and amortization expense | 162,682 | 163,853 | |||||
Transaction costs | 460 | 21 | |||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
General and administrative expense | 41,762 | 35,894 | |||||
Less: | |||||||
Net operating income attributable to noncontrolling interests in property partnerships | 47,085 | 45,909 | |||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | ||||
Interest and other income | 3,753 | 1,648 | |||||
(Losses) gains on sales of real estate | (905 | ) | 98,907 | ||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | |||||
Development and management services revenue | 9,277 | 8,405 | |||||
Company's share of Net Operating Income | $ | 425,979 | $ | 371,610 |
Boston | Los Angeles | New York | San Francisco | Washington, DC | Total | ||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||
Office | $ | 217,411 | $ | — | $ | 258,631 | $ | 124,055 | $ | 96,345 | $ | 696,442 | |||||||||||
Residential | 2,701 | — | — | — | 5,014 | 7,715 | |||||||||||||||||
Hotel | 8,938 | — | — | — | — | 8,938 | |||||||||||||||||
Total | 229,050 | — | 258,631 | 124,055 | 101,359 | 713,095 | |||||||||||||||||
% of Grand Totals | 32.12 | % | — | % | 36.27 | % | 17.40 | % | 14.21 | % | 100.00 | % | |||||||||||
Rental Expenses: | |||||||||||||||||||||||
Office | 79,500 | — | 96,971 | 41,125 | 36,147 | 253,743 | |||||||||||||||||
Residential | 1,206 | — | — | — | 2,568 | 3,774 | |||||||||||||||||
Hotel | 7,863 | — | — | — | — | 7,863 | |||||||||||||||||
Total | 88,569 | — | 96,971 | 41,125 | 38,715 | 265,380 | |||||||||||||||||
% of Grand Totals | 33.37 | % | — | % | 36.54 | % | 15.50 | % | 14.59 | % | 100.00 | % | |||||||||||
Net operating income | $ | 140,481 | $ | — | $ | 161,660 | $ | 82,930 | $ | 62,644 | $ | 447,715 | |||||||||||
% of Grand Totals | 31.38 | % | — | % | 36.11 | % | 18.52 | % | 13.99 | % | 100.00 | % | |||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (9,373 | ) | — | (37,264 | ) | (448 | ) | — | (47,085 | ) | |||||||||||||
Add: Company's share of net operating income from unconsolidated joint ventures | 772 | 15,708 | 1,786 | — | 7,083 | 25,349 | |||||||||||||||||
Company's share of net operating income | $ | 131,880 | $ | 15,708 | $ | 126,182 | $ | 82,482 | $ | 69,727 | $ | 425,979 | |||||||||||
% of Grand Totals | 30.96 | % | 3.69 | % | 29.62 | % | 19.36 | % | 16.37 | % | 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. |
Boston | Los Angeles | New York | San Francisco | Washington, DC | Total | ||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||
Office | $ | 204,997 | $ | — | $ | 242,398 | $ | 89,893 | $ | 99,312 | $ | 636,600 | |||||||||||
Residential | 1,152 | — | — | — | 3,007 | 4,159 | |||||||||||||||||
Hotel | 9,102 | — | — | — | — | 9,102 | |||||||||||||||||
Total | 215,251 | — | 242,398 | 89,893 | 102,319 | 649,861 | |||||||||||||||||
% of Grand Totals | 33.12 | % | — | % | 37.31 | % | 13.83 | % | 15.74 | % | 100.00 | % | |||||||||||
Rental Expenses: | |||||||||||||||||||||||
Office | 80,324 | — | 93,762 | 27,628 | 36,343 | 238,057 | |||||||||||||||||
Residential | 514 | — | — | — | 1,758 | 2,272 | |||||||||||||||||
Hotel | 8,073 | — | — | — | — | 8,073 | |||||||||||||||||
Total | 88,911 | — | 93,762 | 27,628 | 38,101 | 248,402 | |||||||||||||||||
% of Grand Totals | 35.79 | % | — | % | 37.75 | % | 11.12 | % | 15.34 | % | 100.00 | % | |||||||||||
Net operating income | $ | 126,340 | $ | — | $ | 148,636 | $ | 62,265 | $ | 64,218 | $ | 401,459 | |||||||||||
% of Grand Totals | 31.47 | % | — | % | 37.02 | % | 15.51 | % | 16.00 | % | 100.00 | % | |||||||||||
Less: Net operating income attributable to noncontrolling interests in property partnerships | (8,129 | ) | — | (37,946 | ) | 166 | — | (45,909 | ) | ||||||||||||||
Add: Company's share of net operating income from unconsolidated joint ventures | 534 | 7,074 | 1,661 | — | 6,791 | 16,060 | |||||||||||||||||
Company's share of net operating income | $ | 118,745 | $ | 7,074 | $ | 112,351 | $ | 62,431 | $ | 71,009 | $ | 371,610 | |||||||||||
% of Grand Totals | 31.96 | % | 1.90 | % | 30.23 | % | 16.80 | % | 19.11 | % | 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. |
• | if there is a negative change in the economy, including, but not limited to, a reversal of current job growth trends and an increase in unemployment, it could have a negative effect on the following, among other things: |
• | the fundamentals of our business, including overall market occupancy, tenant space utilization and rental rates; |
• | the financial condition of our tenants, many of which are financial, legal, media/telecommunication, technology and other professional firms, our lenders, counterparties to our derivative financial instruments and institutions that hold our cash balances and short-term investments, which may expose us to increased risks of default by these parties; and |
• | the value of our real estate assets, which may limit our ability to dispose of assets at attractive prices or obtain or maintain debt financing secured by our properties or on an unsecured basis; |
• | volatile or adverse global economic and political conditions, and dislocations in the credit markets could adversely affect our access to cost-effective capital and have a resulting material adverse effect on our business opportunities, results of operations and financial condition; |
• | general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases, tenant space utilization, dependence on tenants’ financial condition, and competition from other developers, owners and operators of real estate); |
• | failure to manage effectively our growth and expansion into new markets and sub-markets or to integrate acquisitions and developments successfully; |
• | the ability of our joint venture partners to satisfy their obligations; |
• | risks and uncertainties affecting property development and construction (including, without limitation, construction delays, increased construction costs, cost overruns, inability to obtain necessary permits, tenant accounting considerations that may result in negotiated lease provisions that limit a tenant’s liability during construction, and public opposition to such activities); |
• | risks associated with the availability and terms of financing and the use of debt to fund acquisitions and developments or refinance existing indebtedness, including the impact of higher interest rates on the cost and/or availability of financing; |
• | risks associated with forward interest rate contracts and the effectiveness of such arrangements; |
• | risks associated with downturns in the national and local economies, increases in interest rates, and volatility in the securities markets; |
• | risks associated with actual or threatened terrorist attacks; |
• | costs of compliance with the Americans with Disabilities Act and other similar laws; |
• | potential liability for uninsured losses and environmental contamination; |
• | risks associated with security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems, which support our operations and our buildings; |
• | risks associated with BXP’s potential failure to qualify as a REIT under the Internal Revenue Code of 1986, as amended; |
• | possible adverse changes in tax and environmental laws; |
• | the impact of newly adopted accounting principles on our accounting policies and on period-to-period comparisons of financial results; |
• | risks associated with possible state and local tax audits; |
• | risks associated with our dependence on key personnel whose continued service is not guaranteed; and |
• | the other risk factors identified in our most recently filed Annual Reports on Form 10-K, including those described under the caption “Risk Factors.” |
• | our understanding of tenants’ short- and long-term space utilization and amenity needs in the local markets; |
• | our reputation as a premier developer, owner and manager of primarily Class A office properties; |
• | our financial strength and our ability to maintain high building standards; |
• | our focus on developing and operating in a sustainable and responsible manner; and |
• | our relationships with local brokers. |
• | ensuring tenant satisfaction; |
• | leasing available space in our in-service and development properties, as well as proactively focusing on sizable future lease expirations; |
• | completing the construction of our development properties; |
• | continuing and completing the redevelopment and repositioning of several key properties to increase future revenue and asset values over the long-term; |
• | maintaining discipline in our underwriting of investment opportunities by (1) seeking significant pre-leasing commitments before beginning new construction, and (2) targeting acquisition activity in non-stabilized assets near innovation centers where we see favorable prospects for overall growth and our operational expertise can create value; |
• | managing our near-term debt maturities and maintaining our conservative balance sheet; and |
• | actively managing our operations in a sustainable and responsible manner. |
Three months ended March 31, 2019 | ||||
(Square Feet) | ||||
Vacant space available at the beginning of the period | 3,859,897 | |||
Property dispositions/properties taken out of service | (85,019 | ) | ||
Leases expiring or terminated during the period | 1,274,106 | |||
Total space available for lease | 5,048,984 | |||
1st generation leases | 244,430 | |||
2nd generation leases with new tenants | 883,922 | |||
2nd generation lease renewals | 738,267 | |||
Total space leased (1) | 1,866,619 | |||
Vacant space available for lease at the end of the period | 3,182,365 | |||
Leases executed during the period, in square feet (2) | 1,522,346 | |||
Second generation leasing information: (3) | ||||
Leases commencing during the period, in square feet | 1,622,189 | |||
Weighted Average Lease Term | 122 Months | |||
Weighted Average Free Rent Period | 111 Days | |||
Total Transaction Costs Per Square Foot (4) | $79.40 | |||
Increase in Gross Rents (5) | 6.15 | % | ||
Increase in Net Rents (6) | 9.35 | % |
(1) | Represents leases for which rental revenue recognition has commenced in accordance with GAAP during the three months ended March 31, 2019. |
(2) | Represents leases executed during the three months ended March 31, 2019 for which we either (1) commenced rental revenue recognition in such period or (2) will commence rental revenue recognition in subsequent periods, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed and recognized in the three months ended March 31, 2019 is 151,075. |
(3) | Second generation leases are defined as leases for space that had previously been leased by us. Of the 1,622,189 square feet of second generation leases that commenced during the three months ended March 31, 2019, leases for 1,471,114 square feet were signed in prior periods. |
(4) | Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions and other inducements in accordance with GAAP. |
(5) | Represents the increase in gross rent (base rent plus expense reimbursements) on the new versus expired leases on the 1,293,772 square feet of second generation leases that had been occupied within the prior 12 months for the three months ended March 31, 2019; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis. |
(6) | Represents the increase in net rent (gross rent less operating expenses) on the new versus expired leases on the 1,293,772 square feet of second generation leases that had been occupied within the prior 12 months for the three months ended March 31, 2019; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis. |
• | On February 14, 2019, we announced that we had entered into a 15-year lease with Google, LLC for approximately 362,000 net rentable square feet of Class A office space in a build-to-suit development project to be located at our 325 Main Street property at Kendall Center in Cambridge, Massachusetts. 325 Main Street currently consists of an approximately 115,000 net rentable square foot Class A office property that will be demolished and developed into an approximately 400,000 net rentable square foot Class A office property, including approximately 38,000 net rentable square feet of retail space. There can be no assurance that the project will commence. |
• | On January 24, 2019, the ground lessor under our 65-year ground lease for land totaling approximately 5.6 acres at Platform 16 located in San Jose, California, which will support approximately 1.1 million square feet of commercial office space, made available for lease to us the remaining land parcels. |
• | On January 10, 2019, we acquired land parcels at our Carnegie Center property located in Princeton, New Jersey for a gross purchase price of approximately $51.5 million, which includes an aggregate of approximately $8.6 million of additional amounts that are payable in the future to the seller upon the development or sale of each of the parcels. The land parcels could support approximately 1.7 million square feet of development. |
• | On January 24, 2019, we completed the sale of our 2600 Tower Oaks Boulevard property located in Rockville, Maryland for a gross sales price of approximately $22.7 million. Net cash proceeds totaled approximately $21.4 million, resulting in a loss on sale of real estate totaling approximately $0.6 million. We recognized an impairment loss totaling approximately $3.1 million for BXP and approximately $1.5 million for BPLP during the year ended December 31, 2018. 2600 Tower Oaks Boulevard is an approximately 179,000 net rentable square foot Class A office property. |
• | On January 24, 2019, a joint venture in which we have a 50% interest extended the loan collateralized by its Annapolis Junction Building Six property. At the time of the extension, the outstanding balance of the loan totaled approximately $13.0 million and was scheduled to mature on November 17, 2019, with one, one-year extension option, subject to certain conditions. The extended loan has a total commitment amount of approximately $14.3 million, bears interest at a variable rate equal to LIBOR plus 2.00% per annum and matures on November 17, 2020. Annapolis Junction Building Six is a Class A office property with approximately 119,000 net rentable square feet located in Annapolis, Maryland. |
• | On April 1, 2019, we completed the acquisition of our partner's 5% ownership interest and promoted profits interest in the consolidated entity that owns Salesforce Tower located in San Francisco, California for cash totaling approximately $210.9 million, which amount was reduced by approximately $24.1 million, consisting of the repayment of our preferred equity and preferred return in the venture. The partner was entitled to receive an additional promoted payment based on the success of the property. Salesforce Tower is an approximately 1,421,000 net rentable square foot Class A office property (See Note 7 to the Consolidated Financial Statements). |
• | At March 31, 2019, we evaluated the expected hold period of our One Tower Center property and based on a shorter than expected hold period, we reduced the carrying value of the property to our estimated fair value at March 31, 2019 and recognized an impairment loss totaling approximately $24.0 million for BXP and approximately $22.3 million for BPLP. Our estimated fair value was based on a pending offer from a third party to acquire the property and the subsequent execution of a purchase and sale agreement on April 18, 2019 for a gross sale price of approximately $38.0 million (See Note 12 to the Consolidated Financial Statements). One Tower Center is an approximately 410,000 net rentable square foot Class A office property located in East Brunswick, New Jersey. |
• | On April 26, 2019, a joint venture in which we have a 50% interest obtained construction financing with a total commitment of $255.0 million collateralized by its 7750 Wisconsin Avenue development project located in Bethesda, Maryland. The construction financing bears interest at a variable rate equal to LIBOR plus 1.25% per annum and matures on April 26, 2023, with two, one-year extension options, subject to certain conditions. There have been no amounts drawn under the loan to date. 7750 Wisconsin Avenue is a 734,000 net rentable square foot build-to-suit Class A office project and below-grade parking garage. |
Three months ended March 31, | |||||||||||||||
2019 | 2018 | Increase/ (Decrease) | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Net Income Attributable to Boston Properties, Inc. Common Shareholders | $ | 98,105 | $ | 176,021 | $ | (77,916 | ) | (44.27 | )% | ||||||
Preferred dividends | 2,625 | 2,625 | — | — | % | ||||||||||
Net Income Attributable to Boston Properties, Inc. | 100,730 | 178,646 | (77,916 | ) | (43.61 | )% | |||||||||
Net Income Attributable to Noncontrolling Interests: | |||||||||||||||
Noncontrolling interest—common units of Boston Properties Limited Partnership | 11,599 | 20,432 | (8,833 | ) | (43.23 | )% | |||||||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | 1,596 | 9.26 | % | ||||||||||
Net Income | 131,159 | 216,312 | (85,153 | ) | (39.37 | )% | |||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Interest expense | 101,009 | 90,220 | 10,789 | 11.96 | % | ||||||||||
Impairment loss | 24,038 | — | 24,038 | 100.00 | % | ||||||||||
Other Income: | |||||||||||||||
Less: | |||||||||||||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | 3,095 | 2,456.35 | % | |||||||||
Interest and other income | 3,753 | 1,648 | 2,105 | 127.73 | % | ||||||||||
(Losses) gains on sales of real estate | (905 | ) | 96,397 | (97,302 | ) | (100.94 | )% | ||||||||
Income from unconsolidated joint ventures | 213 | 461 | (248 | ) | (53.80 | )% | |||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 164,594 | 165,797 | (1,203 | ) | (0.73 | )% | |||||||||
Transaction costs | 460 | 21 | 439 | 2,090.48 | % | ||||||||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | 510 | 17.68 | % | ||||||||||
General and administrative expense | 41,762 | 35,894 | 5,868 | 16.35 | % | ||||||||||
Other Revenue: | |||||||||||||||
Less: | |||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | 510 | 17.68 | % | ||||||||||
Development and management services revenue | 9,277 | 8,405 | 872 | 10.37 | % | ||||||||||
Net Operating Income | $ | 447,715 | $ | 401,459 | $ | 46,256 | 11.52 | % |
Three months ended March 31, | |||||||||||||||
2019 | 2018 | Increase/ (Decrease) | % Change | ||||||||||||
(in thousands) | |||||||||||||||
Net Income Attributable to Boston Properties Limited Partnership Common Unitholders | $ | 113,382 | $ | 200,907 | $ | (87,525 | ) | (43.56 | )% | ||||||
Preferred distributions | 2,625 | 2,625 | — | — | % | ||||||||||
Net Income Attributable to Boston Properties Limited Partnership | 116,007 | 203,532 | (87,525 | ) | (43.00 | )% | |||||||||
Net Income Attributable to Noncontrolling Interests: | |||||||||||||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | 1,596 | 9.26 | % | ||||||||||
Net Income | 134,837 | 220,766 | (85,929 | ) | (38.92 | )% | |||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Interest expense | 101,009 | 90,220 | 10,789 | 11.96 | % | ||||||||||
Impairment loss | 22,272 | — | 22,272 | 100.00 | % | ||||||||||
Less: | |||||||||||||||
Gains (losses) from investments in securities | 2,969 | (126 | ) | 3,095 | 2,456.35 | % | |||||||||
Interest and other income | 3,753 | 1,648 | 2,105 | 127.73 | % | ||||||||||
(Losses) gains on sales of real estate | (905 | ) | 98,907 | (99,812 | ) | (100.92 | )% | ||||||||
Income from unconsolidated joint ventures | 213 | 461 | (248 | ) | (53.80 | )% | |||||||||
Other Expenses: | |||||||||||||||
Add: | |||||||||||||||
Depreciation and amortization expense | 162,682 | 163,853 | (1,171 | ) | (0.71 | )% | |||||||||
Transaction costs | 460 | 21 | 439 | 2,090.48 | % | ||||||||||
Payroll and related costs from management services contracts | 3,395 | 2,885 | 510 | 17.68 | % | ||||||||||
General and administrative expense | 41,762 | 35,894 | 5,868 | 16.35 | % | ||||||||||
Other Revenue: | |||||||||||||||
Less: | |||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 3,395 | 2,885 | 510 | 17.68 | % | ||||||||||
Development and management services revenue | 9,277 | 8,405 | 872 | 10.37 | % | ||||||||||
Net Operating Income | $ | 447,715 | $ | 401,459 | $ | 46,256 | 11.52 | % |
Same Property Portfolio | Properties Placed In-Service Portfolio | Properties in Development or Redevelopment Portfolio | Properties Sold Portfolio | Total Property Portfolio | |||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | 2019 | 2018 | Increase/(Decrease) | % Change | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | Increase/(Decrease) | % Change | |||||||||||||||||||||||||||||||||||||||
Rental Revenue: (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Revenue (Excluding Termination Income) | $ | 633,948 | $ | 598,594 | $ | 35,354 | 5.91 | % | $ | 29,571 | $ | 3,710 | $ | 867 | $ | 839 | $ | 347 | $ | 6,119 | $ | 664,733 | $ | 609,262 | $ | 55,471 | 9.10 | % | |||||||||||||||||||||||||
Termination Income | 7,132 | 825 | 6,307 | 764.48 | % | — | — | — | 5 | (196 | ) | 532 | 6,936 | 1,362 | 5,574 | 409.25 | % | ||||||||||||||||||||||||||||||||||||
Lease Revenue | 641,080 | 599,419 | 41,661 | 6.95 | % | 29,571 | 3,710 | 867 | 844 | 151 | 6,651 | 671,669 | 610,624 | 61,045 | 10.00 | % | |||||||||||||||||||||||||||||||||||||
Parking and Other Income | 24,530 | 25,661 | (1,131 | ) | (4.41 | )% | 229 | 23 | 6 | 19 | 8 | 272 | 24,773 | 25,975 | (1,202 | ) | (4.63 | )% | |||||||||||||||||||||||||||||||||||
Total Rental Revenue (1) | 665,610 | 625,080 | 40,530 | 6.48 | % | 29,800 | 3,733 | 873 | 863 | 159 | 6,923 | 696,442 | 636,599 | 59,843 | 9.40 | % | |||||||||||||||||||||||||||||||||||||
Real Estate Operating Expenses | 239,952 | 232,014 | 7,938 | 3.42 | % | 13,043 | 2,563 | 559 | 394 | 189 | 3,085 | 253,743 | 238,056 | 15,687 | 6.59 | % | |||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss), excluding residential and hotel | 425,658 | 393,066 | 32,592 | 8.29 | % | 16,757 | 1,170 | 314 | 469 | (30 | ) | 3,838 | 442,699 | 398,543 | 44,156 | 11.08 | % | ||||||||||||||||||||||||||||||||||||
Residential Net Operating Income (Loss) (2) | 2,350 | 2,492 | (142 | ) | (5.70 | )% | 1,591 | (605 | ) | — | — | — | — | 3,941 | 1,887 | 2,054 | 108.85 | % | |||||||||||||||||||||||||||||||||||
Hotel Net Operating Income (2) | 1,075 | 1,029 | 46 | 4.47 | % | — | — | — | — | — | — | 1,075 | 1,029 | 46 | 4.47 | % | |||||||||||||||||||||||||||||||||||||
Net Operating Income (Loss) | $ | 429,083 | $ | 396,587 | $ | 32,496 | 8.19 | % | $ | 18,348 | $ | 565 | $ | 314 | $ | 469 | $ | (30 | ) | $ | 3,838 | $ | 447,715 | $ | 401,459 | $ | 46,256 | 11.52 | % |
(1) | Rental Revenue is equal to Revenue less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Revenue per the Consolidated Statements of Operations excluding the residential and hotel revenue that is noted below. Upon the adoption of ASU-2016-02 “Leases” on January 1, 2019, service income from tenants is included in Lease revenue. Prior to adoption, these amounts were included in the line item for Development and Management Services Revenue. We use Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provides investors with information regarding our performance that is not immediately apparent from the comparable non-GAAP measures and allows investors to compare operating performance between periods. |
(2) | For a detailed discussion of NOI, including the reasons management believes NOI is useful to investors, see page 51. Residential Net Operating Income for the three months ended March 31, 2019 and 2018 is comprised of Residential Revenue of $7,715 and $4,159, less Residential Expenses of $3,774 and $2,272, respectively. Hotel Net Operating Income for the three months ended March 31, 2019 and 2018 is comprised of Hotel Revenue of $8,938 and $9,102 less Hotel Expenses of $7,863 and $8,073, respectively, per the Consolidated Statements of Operations. |
Quarter Initially Placed In-Service | Quarter Fully Placed In-Service | Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||
Name | Square Feet | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||
191 Spring Street | Fourth Quarter, 2017 | Fourth Quarter, 2018 | 170,997 | $ | 1,823 | $ | 927 | $ | 896 | $ | 591 | $ | 388 | $ | 203 | ||||||||||||||||
Salesforce Tower | Fourth Quarter, 2017 | Fourth Quarter, 2018 | 1,420,682 | 27,977 | 2,806 | 25,171 | 12,452 | 2,175 | 10,277 | ||||||||||||||||||||||
Total Office | 1,591,679 | 29,800 | 3,733 | 26,067 | 13,043 | 2,563 | 10,480 | ||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||
Signature at Reston | First Quarter, 2018 | Second Quarter, 2018 | 517,783 | 2,218 | 81 | 2,137 | 1,477 | 686 | 791 | ||||||||||||||||||||||
Proto Kendall Square | Second Quarter, 2018 | Third Quarter, 2018 | 166,717 | 1,510 | — | 1,510 | 660 | — | 660 | ||||||||||||||||||||||
Total Residential | 684,500 | 3,728 | 81 | 3,647 | 2,137 | 686 | 1,451 | ||||||||||||||||||||||||
2,276,179 | $ | 33,528 | $ | 3,814 | $ | 29,714 | $ | 15,180 | $ | 3,249 | $ | 11,931 |
Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||
Name | Date commenced development / redevelopment | Square Feet | 2019 | 2018 | Change | 2019 | 2018 | Change | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
One Five Nine East 53rd Street (1) | August 19, 2016 | 220,000 | $ | 873 | $ | 863 | $ | 10 | $ | 559 | $ | 394 | $ | 165 |
(1) | This is the low-rise portion of 601 Lexington Avenue in New York City. Rental revenue includes approximately $5,000 of termination income for the three months ended March 31, 2018. |
Rental Revenue | Real Estate Operating Expenses | ||||||||||||||||||||||||||||||
Name | Date Sold | Property Type | Square Feet | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||
500 E Street, S.W. | January 9, 2018 | Office | 262,000 | $ | — | $ | 270 | $ | (270 | ) | $ | — | $ | 129 | $ | (129 | ) | ||||||||||||||
91 Hartwell Avenue | May 24, 2018 | Office | 119,000 | — | 763 | (763 | ) | — | 383 | (383 | ) | ||||||||||||||||||||
Quorum Office Park | September 27, 2018 | Office | 268,000 | — | 1,097 | (1,097 | ) | — | 557 | (557 | ) | ||||||||||||||||||||
1333 New Hampshire Avenue (1) | November 30, 2018 | Office | 315,000 | — | 4,009 | (4,009 | ) | — | 1,461 | (1,461 | ) | ||||||||||||||||||||
Tower Oaks | December 20, 2018 | Land | N/A | — | 106 | (106 | ) | — | 54 | (54 | ) | ||||||||||||||||||||
2600 Tower Oaks Boulevard (2) | January 24, 2019 | Office | 179,000 | 159 | 678 | (519 | ) | 189 | 501 | (312 | ) | ||||||||||||||||||||
1,143,000 | $ | 159 | $ | 6,923 | $ | (6,764 | ) | $ | 189 | $ | 3,085 | $ | (2,896 | ) |
(1) | Rental revenue includes approximately $0.5 million of termination income for the three months ended March 31, 2018. |
(2) | Rental revenue includes approximately $(0.2) million of termination income for the three months ended March 31, 2019. |
The Lofts at Atlantic Wharf | The Avant at Reston Town Center | |||||||||||||||||||||
2019 | 2018 | Percentage Change | 2019 | 2018 | Percentage Change | |||||||||||||||||
Average Monthly Rental Rate (1) | $ | 4,433 | $ | 4,116 | 7.7 | % | $ | 2,352 | $ | 2,347 | 0.2 | % | ||||||||||
Average Rental Rate Per Occupied Square Foot | $ | 4.86 | $ | 4.61 | 5.4 | % | $ | 2.57 | $ | 2.58 | (0.4 | )% | ||||||||||
Average Physical Occupancy (2) | 94.6 | % | 92.3 | % | 2.5 | % | 90.3 | % | 94.1 | % | (4.0 | )% | ||||||||||
Average Economic Occupancy (3) | 95.0 | % | 91.2 | % | 4.2 | % | 89.3 | % | 93.1 | % | (4.1 | )% |
(1) | Average Monthly Rental Rates are calculated by us as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP by (B) the number of occupied units for each month within the applicable fiscal period. |
(2) | Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage. |
(3) | Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property's total possible gross revenue. Market Rents used by us in calculating Average Economic Occupancy are based on the current market rates set by the managers of our residential properties based on their experience in renting their residential property’s units and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions. |
2019 | 2018 | Percentage Change | |||||||||
Occupancy | 80.2 | % | 81.0 | % | (1.0 | )% | |||||
Average daily rate | $ | 221.39 | $ | 218.84 | 1.2 | % | |||||
Revenue per available room, REVPAR | $ | 177.63 | $ | 177.34 | 0.2 | % |
Depreciation and Amortization Expense for the three months ended March 31, | ||||||||||||
2019 | 2018 | Change | ||||||||||
(in thousands) | ||||||||||||
Same Property Portfolio | $ | 153,926 | $ | 162,795 | $ | (8,869 | ) | |||||
Properties Placed in-Service Portfolio | 10,509 | 1,479 | 9,030 | |||||||||
Properties Sold Portfolio | 159 | 1,523 | (1,364 | ) | ||||||||
$ | 164,594 | $ | 165,797 | $ | (1,203 | ) |
Depreciation and Amortization Expense for the three months ended March 31, | ||||||||||||
2019 | 2018 | Change | ||||||||||
(in thousands) | ||||||||||||
Same Property Portfolio | $ | 152,014 | $ | 160,851 | $ | (8,837 | ) | |||||
Properties Placed in-Service Portfolio | 10,509 | 1,479 | 9,030 | |||||||||
Properties Sold Portfolio | 159 | 1,523 | (1,364 | ) | ||||||||
$ | 162,682 | $ | 163,853 | $ | (1,171 | ) |
Name | Date Sold | Property Type | Square Feet | Sale Price | Cash Proceeds | (Losses) Gains on Sale of Real Estate | |||||||||||||
2019 | |||||||||||||||||||
2600 Tower Oaks Boulevard | January 24, 2019 | Office | 179,000 | $ | 22.7 | $ | 21.4 | $ | (0.6 | ) | (1) | ||||||||
2018 | |||||||||||||||||||
500 E Street, S.W. | January 9, 2018 | Office | 262,000 | $ | 118.6 | $ | 116.1 | $ | 96.4 |
(1) | Excludes approximately $0.3 million of losses on sales of real estate recognized during the three months ended March 31, 2019 related to loss amounts from sales of real estate occurring in prior years. |
Name | Date Sold | Property Type | Square Feet | Sale Price | Cash Proceeds | (Losses) Gains on Sale of Real Estate | |||||||||||||
2019 | |||||||||||||||||||
2600 Tower Oaks Boulevard | January 24, 2019 | Office | 179,000 | $ | 22.7 | $ | 21.4 | $ | (0.6 | ) | (1) | ||||||||
2018 | |||||||||||||||||||
500 E Street, S.W. | January 9, 2018 | Office | 262,000 | $ | 118.6 | $ | 116.1 | $ | 98.9 |
(1) | Excludes approximately $0.3 million of losses on sales of real estate recognized during the three months ended March 31, 2019 related to loss amounts from sales of real estate occurring in prior years. |
Component | Change in interest expense for the three months ended March 31, 2019 compared to March 31, 2018 | |||
(in thousands) | ||||
Increases to interest expense due to: | ||||
Issuance of $1 billion in aggregate principal of 4.500% senior notes due 2028 on November 28, 2018 | $ | 11,321 | ||
Decrease in capitalized interest related to development projects | 6,482 | |||
Utilization of the 2017 Credit Facility | 3,458 | |||
Increase in interest due to finance leases | 917 | |||
Total increases to interest expense | 22,178 | |||
Decreases to interest expense due to: | ||||
Redemption of $700 million in aggregate principal of 5.875% senior notes due 2019 on December 13, 2018 | (10,295 | ) | ||
Increase in capitalized interest related to development projects that had finance leases | (917 | ) | ||
Other interest expense (excluding senior notes) | (177 | ) | ||
Total decreases to interest expense | (11,389 | ) | ||
Total change in interest expense | $ | 10,789 |
Property | Noncontrolling Interests in Property Partnerships for the three months ended March 31, | |||||||||||
2019 | 2018 | Change | ||||||||||
(in thousands) | ||||||||||||
Salesforce Tower (1) | $ | 116 | $ | (164 | ) | $ | 280 | |||||
767 Fifth Avenue (the General Motors Building) | 2,298 | 462 | 1,836 | |||||||||
Times Square Tower | 6,892 | 6,901 | (9 | ) | ||||||||
601 Lexington Avenue | 4,664 | 6,327 | (1,663 | ) | ||||||||
100 Federal Street | 2,555 | 1,398 | 1,157 | |||||||||
Atlantic Wharf Office | 2,305 | 2,310 | (5 | ) | ||||||||
$ | 18,830 | $ | 17,234 | $ | 1,596 |
(1) | See Note 12 to the Consolidated Financial Statements. |
• | fund normal recurring expenses; |
• | meet debt service and principal repayment obligations, including balloon payments on maturing debt; |
• | fund development/redevelopment costs; |
• | fund capital expenditures, including major renovations, tenant improvements and leasing costs; |
• | fund planned and possible acquisitions of properties, either directly or indirectly through the acquisition of equity interests therein, |
• | fund dividend requirements on BXP’s Series B Preferred Stock; and |
• | make the minimum distribution required to enable BXP to maintain its REIT qualification under the Internal Revenue Code of 1986, as amended. |
• | cash flow from operations; |
• | distribution of cash flows from joint ventures; |
• | cash and cash equivalent balances; |
• | BPLP’s 2017 Credit Facility and other short-term bridge facilities; |
• | construction loans; |
• | long-term secured and unsecured indebtedness (including unsecured exchangeable indebtedness); |
• | sales of real estate; and |
• | issuances of BXP equity securities and/or additional preferred or common units of partnership interest in BPLP. |
Financings | ||||||||||||||||||||||||||||||||||
Construction Properties | Estimated Stabilization Date | Location | # of Buildings | Estimated Square Feet | Investment to Date (1)(2)(3) | Estimated Total Investment (1)(2) | Total Available (1) | Outstanding at 3/31/2019 (1) | Estimated Future Equity Requirement (1)(2)(4) | Percentage Leased (5) | ||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||||
The Hub on Causeway - Podium (50% ownership) | Q4 2019 | Boston, MA | 1 | 385,000 | $ | 128,118 | $ | 141,870 | $ | 102,300 | $ | 70,007 | $ | — | 88 | % | ||||||||||||||||||
145 Broadway | Q4 2019 | Cambridge, MA | 1 | 485,000 | 259,016 | 366,400 | — | — | 107,384 | 98 | % | |||||||||||||||||||||||
Dock 72 (50% ownership) | Q3 2021 | Brooklyn, NY | 1 | 670,000 | 165,880 | 243,150 | 125,000 | 71,448 | 23,718 | 33 | % | |||||||||||||||||||||||
17Fifty Presidents Street | Q3 2020 | Reston, VA | 1 | 276,000 | 56,941 | 142,900 | — | — | 85,959 | 100 | % | |||||||||||||||||||||||
20 CityPoint | Q1 2021 | Waltham, MA | 1 | 211,000 | 67,305 | 97,000 | — | — | 29,695 | 63 | % | |||||||||||||||||||||||
100 Causeway Street (50% ownership) | Q3 2022 | Boston, MA | 1 | 627,000 | 67,453 | 267,300 | — | — | 199,847 | 70 | % | |||||||||||||||||||||||
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) | Q3 2022 | Bethesda, MD | 1 | 734,000 | 60,268 | 198,900 | — | — | 138,632 | 100 | % | (6) | ||||||||||||||||||||||
Reston Gateway | Q4 2023 | Reston, VA | 2 | 1,062,000 | 50,218 | 715,300 | — | 665,082 | 80 | % | ||||||||||||||||||||||||
Total Office Properties under Construction | 9 | 4,450,000 | 855,199 | 2,172,820 | 227,300 | 141,455 | 1,250,317 | 78 | % | |||||||||||||||||||||||||
Residential | ||||||||||||||||||||||||||||||||||
The Hub on Causeway - Residential (440 units) (50% ownership) | Q4 2021 | Boston, MA | 1 | 320,000 | 95,129 | 153,500 | 90,000 | 31,750 | 121 | N/A | ||||||||||||||||||||||||
MacArthur Station Residences (402 units) | Q4 2021 | Oakland, CA | 1 | 324,000 | 84,271 | 263,600 | — | — | 179,329 | N/A | (7) | |||||||||||||||||||||||
Total Residential Properties under Construction | 2 | 644,000 | 179,400 | 417,100 | 90,000 | 31,750 | 179,450 | N/A | ||||||||||||||||||||||||||
Redevelopment Properties | ||||||||||||||||||||||||||||||||||
One Five Nine East 53rd Street (55% ownership) | Q4 2019 | New York, NY | — | 220,000 | 107,915 | 150,000 | — | — | 42,085 | 90 | % | (8) | ||||||||||||||||||||||
Total Properties under Redevelopment | — | 220,000 | 107,915 | 150,000 | — | — | 42,085 | 90 | % | |||||||||||||||||||||||||
Total Properties under Construction and Redevelopment | 11 | 5,314,000 | $ | 1,142,514 | $ | 2,739,920 | $ | 317,300 | $ | 173,205 | $ | 1,471,852 | 78 | % | (9) |
(1) | Represents our share. |
(2) | Investment to Date, Estimated Total Investment and Estimated Future Equity Requirement all include our share of acquisition expenses, as applicable, and reflect our share of the estimated net revenue/expenses that we expect to incur prior to stabilization of the project, including any amounts actually received or paid through March 31, 2019. |
(3) | Includes approximately $109.8 million of unpaid but accrued construction costs and leasing commissions. |
(4) | Excludes approximately $109.8 million of unpaid but accrued construction costs and leasing commissions. |
(5) | Represents percentage leased as of May 2, 2019, including leases with future commencement dates. |
(6) | See Note 12 to the Consolidated Financial Statements. |
(7) | This development is subject to a 99-year ground lease (including extension options) with an option to purchase in the future. |
(8) | The low-rise portion of 601 Lexington Avenue. |
(9) | Percentage leased excludes residential units. |
Three months ended March 31, | |||||||||||
2019 | 2018 | Increase (Decrease) | |||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 207,234 | $ | 225,778 | $ | (18,544 | ) | ||||
Net cash used in investing activities | (223,515 | ) | (183,788 | ) | (39,727 | ) | |||||
Net cash used in financing activities | (190,612 | ) | (92,230 | ) | (98,382 | ) |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Acquisition of real estate (1) | $ | (43,061 | ) | $ | — | ||
Construction in progress (2) | (85,632 | ) | (150,060 | ) | |||
Building and other capital improvements | (32,719 | ) | (53,550 | ) | |||
Tenant improvements | (54,242 | ) | (47,157 | ) | |||
Proceeds from sales of real estate (3) | 20,019 | 116,120 | |||||
Capital contributions to unconsolidated joint ventures (4) | (26,995 | ) | (48,823 | ) | |||
Investments in securities, net | (885 | ) | (318 | ) | |||
Net cash used in investing activities | $ | (223,515 | ) | $ | (183,788 | ) |
(1) | On January 10, 2019, we acquired land parcels at our Carnegie Center property located in Princeton, New Jersey for a gross purchase price of approximately $51.5 million, which includes an aggregate of approximately $8.6 million of additional amounts that are payable in the future to the seller upon the development or sale of each of the parcels. The land parcels will support approximately 1.7 million square feet of development. |
(2) | Construction in progress for the three months ended March 31, 2019 includes ongoing expenditures associated with Salesforce Tower, which was placed in-service during the year ended December 31, 2018. In addition, we incurred costs associated with our continued development/redevelopment of One Five Nine East 53rd Street, 145 Broadway, 20 CityPoint, 17Fifty Presidents Street, Reston Gateway and MacArthur Station Residences. |
(3) | On January 24, 2019, we completed the sale of our 2600 Tower Oaks Boulevard property located in Rockville, Maryland for a gross sales price of approximately $22.7 million. Net cash proceeds totaled approximately $21.4 million, resulting in a loss on sale of real estate totaling approximately $0.6 million. 2600 Tower Oaks Boulevard is an approximately 179,000 net rentable square foot Class A office property. |
(4) | Capital contributions to unconsolidated joint ventures for the three months ended March 31, 2019 consisted primarily of cash contributions of approximately $23.3 million to our 100 Causeway Street joint venture. |
March 31, 2019 | |||||||||||
Shares / Units Outstanding | Common Stock Equivalent | Equivalent Value (1) | |||||||||
Common Stock | 154,515 | 154,515 | $ | 20,686,468 | |||||||
Common Operating Partnership Units | 18,033 | 18,033 | 2,414,258 | (2) | |||||||
5.25% Series B Cumulative Redeemable Preferred Stock (callable on and after March 27, 2018) | 80 | — | 200,000 | ||||||||
Total Equity | 172,548 | $ | 23,300,726 | ||||||||
Consolidated Debt | $ | 11,005,558 | |||||||||
Add: | |||||||||||
BXP’s share of unconsolidated joint venture debt (3) | 919,217 | ||||||||||
Subtract: | |||||||||||
Partners’ share of Consolidated Debt (4) | (1,203,572 | ) | |||||||||
BXP’s Share of Debt | $ | 10,721,203 | |||||||||
Consolidated Market Capitalization | $ | 34,306,284 | |||||||||
BXP’s Share of Market Capitalization | $ | 34,021,929 | |||||||||
Consolidated Debt/Consolidated Market Capitalization | 32.08 | % | |||||||||
BXP’s Share of Debt/BXP’s Share of Market Capitalization | 31.51 | % |
(1) | Except for the Series B Cumulative Redeemable Preferred Stock, which is valued at the liquidation preference of $2,500.00 per share, values are based on the closing price per share of BXP’s Common Stock on March 29, 2019 of $133.88. |
(2) | Includes long-term incentive plan units (including 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units), but excludes MYLTIP Units granted between 2017 and 2019. |
(3) | See page 71 for additional information. |
(4) | See page 70 for additional information. |
(i) | the number of outstanding shares of common stock of BXP, |
(ii) | the number of outstanding OP Units in BPLP (excluding OP Units held by BXP), |
(iii) | the number of OP Units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, and |
(iv) | the number of OP Units issuable upon conversion of 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units that were issued in the form of LTIP Units; plus |
March 31, | |||||||
2019 | 2018 | ||||||
(dollars in thousands) | |||||||
Debt Summary: | |||||||
Balance | |||||||
Fixed rate mortgage notes payable, net | $ | 2,959,908 | $ | 2,974,930 | |||
Unsecured senior notes, net of discount | 7,547,043 | 7,249,383 | |||||
Unsecured line of credit | — | 115,000 | |||||
Unsecured term loan, net | 498,607 | — | |||||
Consolidated Debt | 11,005,558 | 10,339,313 | |||||
Add: | |||||||
BXP’s share of unconsolidated joint venture debt, net (1) | 919,217 | 622,207 | |||||
Subtract: | |||||||
Partners’ share of consolidated mortgage notes payable, net (2) | (1,203,572 | ) | (1,208,154 | ) | |||
BXP’s Share of Debt | $ | 10,721,203 | $ | 9,753,366 | |||
March 31, | |||||||
2019 | 2018 | ||||||
Consolidated Debt Financing Statistics: | |||||||
Percent of total debt: | |||||||
Fixed rate | 95.47 | % | 98.89 | % | |||
Variable rate | 4.53 | % | 1.11 | % | |||
Total | 100.00 | % | 100.00 | % | |||
GAAP Weighted-average interest rate at end of period: | |||||||
Fixed rate | 4.01 | % | 4.09 | % | |||
Variable rate | 3.49 | % | 2.73 | % | |||
Total | 3.99 | % | 4.08 | % | |||
Coupon/Stated Weighted-average interest rate at end of period: | |||||||
Fixed rate | 3.91 | % | 3.98 | % | |||
Variable rate | 3.40 | % | 2.62 | % | |||
Total | 3.88 | % | 3.97 | % | |||
Weighted-average maturity at end of period (in years): | |||||||
Fixed rate | 5.9 | 6.1 | |||||
Variable rate | 3.1 | 4.1 | |||||
Total | 5.7 | 6.1 |
(1) | See page 71 for additional information. |
(2) | See page 70 for additional information. |
Coupon/Stated Rate | Effective Rate (1) | Principal Amount | Maturity Date (2) | ||||||||
10 Year Unsecured Senior Notes | 5.625 | % | 5.708 | % | $ | 700,000 | November 15, 2020 | ||||
10 Year Unsecured Senior Notes | 4.125 | % | 4.289 | % | 850,000 | May 15, 2021 | |||||
11 Year Unsecured Senior Notes | 3.850 | % | 3.954 | % | 1,000,000 | February 1, 2023 | |||||
10.5 Year Unsecured Senior Notes | 3.125 | % | 3.279 | % | 500,000 | September 1, 2023 | |||||
10.5 Year Unsecured Senior Notes | 3.800 | % | 3.916 | % | 700,000 | February 1, 2024 | |||||
7 Year Unsecured Senior Notes | 3.200 | % | 3.350 | % | 850,000 | January 15, 2025 | |||||
10 Year Unsecured Senior Notes | 3.650 | % | 3.766 | % | 1,000,000 | February 1, 2026 | |||||
10 Year Unsecured Senior Notes | 2.750 | % | 3.495 | % | 1,000,000 | October 1, 2026 | |||||
10 Year Unsecured Senior Notes | 4.500 | % | 4.628 | % | 1,000,000 | December 1, 2028 | |||||
Total principal | 7,600,000 | ||||||||||
Net unamortized discount | (17,979 | ) | |||||||||
Deferred financing costs, net | (34,978 | ) | |||||||||
Total | $ | 7,547,043 |
(1) | Yield on issuance date including the effects of discounts on the notes, settlements of interest rate contracts and the amortization of financing costs. |
(2) | No principal amounts are due prior to maturity. |
Properties | Stated Interest Rate | GAAP Interest Rate (1) | Stated Principal Amount | Deferred Financing Costs, Net | Carrying Amount | Carrying Amount (partners’ share) | Maturity Date | |||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||
Wholly-owned | ||||||||||||||||||||||||||
New Dominion Tech Park, Bldg. One | 7.69 | % | 7.84 | % | $ | 28,205 | $ | (149 | ) | $ | 28,056 | N/A | January 15, 2021 | |||||||||||||
University Place | 6.94 | % | 6.99 | % | 5,121 | (29 | ) | 5,092 | N/A | August 1, 2021 | ||||||||||||||||
33,326 | (178 | ) | 33,148 | N/A | ||||||||||||||||||||||
Consolidated Joint Ventures | ||||||||||||||||||||||||||
767 Fifth Avenue (the General Motors Building) | 3.43 | % | 3.64 | % | 2,300,000 | (28,592 | ) | 2,271,408 | $ | 908,664 | (2)(3)(4) | June 9, 2027 | ||||||||||||||
601 Lexington Avenue | 4.75 | % | 4.79 | % | 656,356 | (1,004 | ) | 655,352 | 294,908 | (5) | April 10, 2022 | |||||||||||||||
2,956,356 | (29,596 | ) | 2,926,760 | 1,203,572 | ||||||||||||||||||||||
Total | $ | 2,989,682 | $ | (29,774 | ) | $ | 2,959,908 | $ | 1,203,572 |
(1) | GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions (if any). |
(2) | The mortgage loan requires interest only payments with a balloon payment due at maturity. |
(3) | This property is owned by a consolidated entity in which we have a 60% interest. The partners' share of the carrying amount has been adjusted for basis differentials. |
(4) | In connection with the refinancing of the loan, we guaranteed the consolidated entity’s obligation to fund various reserves for tenant improvement costs and allowances, leasing commissions and free rent obligations in lieu of cash deposits. As of March 31, 2019, the maximum funding obligation under the guarantee was approximately $110.5 million. We earn a fee from the joint venture for providing the guarantee and have an agreement with our partners to reimburse the joint venture for their share of any payments made under the guarantee (See Note 6 to the Consolidated Financial Statements). |
(5) | This property is owned by a consolidated entity in which we have a 55% interest. |
Properties | Venture Ownership % | Stated Interest Rate | GAAP Interest Rate (1) | Stated Principal Amount | Deferred Financing Costs, Net | Carrying Amount | Carrying Amount (Our Share) | Maturity Date | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||
540 Madison Avenue | 60 | % | 3.61 | % | 3.72 | % | $ | 120,000 | $ | (557 | ) | $ | 119,443 | $ | 71,666 | (2)(3) | June 5, 2023 | ||||||||||||
Santa Monica Business Park | 55 | % | 4.06 | % | 4.24 | % | 300,000 | (3,309 | ) | 296,691 | 163,180 | (2)(4) | July 19, 2025 | ||||||||||||||||
Market Square North | 50 | % | 4.85 | % | 4.91 | % | 118,090 | (126 | ) | 117,964 | 58,982 | October 1, 2020 | |||||||||||||||||
Annapolis Junction Building Six | 50 | % | 4.50 | % | 4.95 | % | 12,941 | (51 | ) | 12,890 | 6,445 | (5) | November 17, 2020 | ||||||||||||||||
Annapolis Junction Building Seven and Eight | 50 | % | 4.86 | % | 5.14 | % | 35,282 | (69 | ) | 35,213 | 17,607 | (6) | December 7, 2019 | ||||||||||||||||
1265 Main Street | 50 | % | 3.77 | % | 3.84 | % | 38,760 | (354 | ) | 38,406 | 19,203 | January 1, 2032 | |||||||||||||||||
Colorado Center | 50 | % | 3.56 | % | 3.58 | % | 550,000 | (860 | ) | 549,140 | 274,570 | (2) | August 9, 2027 | ||||||||||||||||
Dock 72 | 50 | % | 4.74 | % | 5.88 | % | 142,897 | (5,960 | ) | 136,937 | 68,468 | (2)(7) | December 18, 2020 | ||||||||||||||||
The Hub on Causeway - Podium | 50 | % | 4.75 | % | 5.22 | % | 140,013 | (2,344 | ) | 137,669 | 68,835 | (2)(8) | September 6, 2021 | ||||||||||||||||
The Hub on Causeway - Residential | 50 | % | 4.49 | % | 4.77 | % | 63,499 | (1,572 | ) | 61,927 | 30,963 | (2)(9) | April 19, 2022 | ||||||||||||||||
500 North Capitol Street, NW | 30 | % | 4.15 | % | 4.20 | % | 105,000 | (247 | ) | 104,753 | 31,426 | (2) | June 6, 2023 | ||||||||||||||||
901 New York Avenue | 25 | % | 3.61 | % | 3.69 | % | 225,000 | (1,027 | ) | 223,973 | 55,993 | January 5, 2025 | |||||||||||||||||
3 Hudson Boulevard | 25 | % | 6.01 | % | 6.09 | % | 80,000 | (273 | ) | 79,727 | 19,932 | (2)(10) | July 13, 2023 | ||||||||||||||||
Metropolitan Square | 20 | % | 5.75 | % | 5.81 | % | 159,847 | (107 | ) | 159,740 | 31,947 | May 5, 2020 | |||||||||||||||||
Total | $ | 2,091,329 | $ | (16,856 | ) | $ | 2,074,473 | $ | 919,217 |
(1) | GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees. |
(2) | The loan requires interest only payments with a balloon payment due at maturity. |
(3) | The mortgage loan bears interest at a variable rate equal to LIBOR plus 1.10% per annum. |
(4) | The loan bears interest at a variable rate equal to LIBOR plus 1.28% per annum and matures on July 19, 2025. A subsidiary of the joint venture entered into interest rate swap contracts with notional amounts aggregating $300.0 million through April 1, 2025, resulting in a fixed rate of approximately 4.063% per annum through the expiration of the interest rate swap contracts. |
(5) | The loan bears interest at a variable rate equal to LIBOR plus 2.00% per annum and matures on November 17, 2020. |
(6) | The loan bears interest at a variable rate equal to LIBOR plus 2.35% per annum and matures on December 7, 2019, with three, one-year extension options, subject to certain conditions. |
(7) | The construction financing bears interest at a variable rate equal to LIBOR plus 2.25% per annum and matures on December 18, 2020, with two, one-year extension option, subject to certain conditions. |
(8) | The construction financing bears interest at a variable rate equal to LIBOR plus 2.25% per annum and matures on September 6, 2021, with two, one-year extension options, subject to certain conditions. In connection with the construction financing, we obtained the right to complete the construction of the garage underneath the project being developed by an affiliate of our joint venture partner and obtain funding from the garage construction lender. We agreed to guarantee completion of the garage to the construction lender and an affiliate of our partner agreed to reimburse us for our partner’s share of any payments under the guarantee. |
(9) | The construction financing bears interest at a variable rate equal to LIBOR plus 2.00% per annum and matures on April 19, 2022, with two, one-year extension options, subject to certain conditions. |
(10) | We provided $80.0 million of mortgage financing to the joint venture. The loan bears interest at a variable rate equal to LIBOR plus 3.50% per annum and matures on July 13, 2023, with extension options, subject to certain |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 98,105 | $ | 176,021 | |||
Add: | |||||||
Preferred dividends | 2,625 | 2,625 | |||||
Noncontrolling interest—common units of Boston Properties Limited Partnership | 11,599 | 20,432 | |||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Net Income | 131,159 | 216,312 | |||||
Add: | |||||||
Depreciation and amortization expense | 164,594 | 165,797 | |||||
Noncontrolling interests in property partnerships’ share of depreciation and amortization | (18,002 | ) | (18,221 | ) | |||
BXP’s share of depreciation and amortization from unconsolidated joint ventures | 15,470 | 9,444 | |||||
Corporate-related depreciation and amortization | (395 | ) | (405 | ) | |||
Impairment loss | 24,038 | — | |||||
Less: | |||||||
(Losses) gains on sales of real estate | (905 | ) | 96,397 | ||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Preferred dividends | 2,625 | 2,625 | |||||
Funds from Operations (FFO) attributable to Boston Properties Limited Partnership common unitholders (including Boston Properties, Inc.) (“Basic FFO”) | 296,314 | 256,671 | |||||
Less: | |||||||
Noncontrolling interest—common units of Boston Properties Limited Partnership’s share of funds from operations | 30,307 | 26,108 | |||||
FFO attributable to Boston Properties, Inc. common shareholders | $ | 266,007 | $ | 230,563 | |||
Boston Properties, Inc.’s percentage share of Funds from Operations—basic | 89.77 | % | 89.83 | % | |||
Weighted-average shares outstanding—basic | 154,525 | 154,385 |
Three months ended March 31, 2019 | Three months ended March 31, 2018 | ||||||||||||
Income (Numerator) | Shares (Denominator) | Income (Numerator) | Shares (Denominator) | ||||||||||
(in thousands) | |||||||||||||
Basic FFO | $ | 296,314 | 172,131 | $ | 256,671 | 171,867 | |||||||
Effect of Dilutive Securities | |||||||||||||
Stock Based Compensation | — | 319 | — | 320 | |||||||||
Diluted FFO | 296,314 | 172,450 | 256,671 | 172,187 | |||||||||
Less: | |||||||||||||
Noncontrolling interest—common units of Boston Properties Limited Partnership’s share of diluted FFO | 30,251 | 17,606 | 26,060 | 17,482 | |||||||||
Boston Properties, Inc.’s share of Diluted FFO (1) | $ | 266,063 | 154,844 | $ | 230,611 | 154,705 |
(1) | BXP’s share of diluted FFO was 89.79% and 89.85% for the three months ended March 31, 2019 and 2018, respectively. |
Three months ended March 31, | |||||||
2019 | 2018 | ||||||
(in thousands) | |||||||
Net income attributable to Boston Properties Limited Partnership common unitholders | $ | 113,382 | $ | 200,907 | |||
Add: | |||||||
Preferred distributions | 2,625 | 2,625 | |||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Net Income | 134,837 | 220,766 | |||||
Add: | |||||||
Depreciation and amortization expense | 162,682 | 163,853 | |||||
Noncontrolling interests in property partnerships’ share of depreciation and amortization | (18,002 | ) | (18,221 | ) | |||
BPLP’s share of depreciation and amortization from unconsolidated joint ventures | 15,470 | 9,444 | |||||
Corporate-related depreciation and amortization | (395 | ) | (405 | ) | |||
Impairment loss | 22,272 | — | |||||
Less: | |||||||
(Losses) gains on sales of real estate | (905 | ) | 98,907 | ||||
Noncontrolling interests in property partnerships | 18,830 | 17,234 | |||||
Preferred distributions | 2,625 | 2,625 | |||||
Funds from Operations (FFO) attributable to Boston Properties Limited Partnership common unitholders (“Basic FFO”) (1) | $ | 296,314 | $ | 256,671 | |||
Weighted-average units outstanding—basic | 172,131 | 171,867 |
(1) | Our calculation includes OP Units and vested LTIP Units (including vested 2012 OPP Units, vested 2013 MYLTIP Units, vested 2014 MYLTIP Units, vested 2015 MYLTIP Units and vested 2016 MYLTIP Units). |
Three months ended March 31, 2019 | Three months ended March 31, 2018 | ||||||||||||
Income (Numerator) | Units (Denominator) | Income (Numerator) | Units (Denominator) | ||||||||||
(in thousands) | |||||||||||||
Basic FFO | $ | 296,314 | 172,131 | $ | 256,671 | 171,867 | |||||||
Effect of Dilutive Securities | |||||||||||||
Stock Based Compensation | — | 319 | — | 320 | |||||||||
Diluted FFO | $ | 296,314 | 172,450 | $ | 256,671 | 172,187 |
2019 | 2020 | 2021 | 2022 | 2023 | 2024+ | Total | Estimated Fair Value | ||||||||||||||||||||||||
(dollars in thousands) Mortgage debt, net | |||||||||||||||||||||||||||||||
Fixed Rate | $ | 11,080 | $ | 16,841 | $ | 36,346 | $ | 611,132 | $ | (3,494 | ) | $ | 2,288,003 | $ | 2,959,908 | $ | 2,948,057 | ||||||||||||||
Average Interest Rate | 5.39 | % | 5.55 | % | 6.61 | % | 4.79 | % | — | 3.64 | % | 3.94 | % | ||||||||||||||||||
Variable Rate | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Unsecured debt, net | |||||||||||||||||||||||||||||||
Fixed Rate | $ | (7,060 | ) | $ | 690,595 | $ | 841,899 | $ | (7,634 | ) | $ | 1,493,454 | $ | 4,535,789 | $ | 7,547,043 | $ | 7,584,456 | |||||||||||||
Average Interest Rate | — | 5.71 | % | 4.29 | % | — | 3.73 | % | 3.84 | % | 4.04 | % | |||||||||||||||||||
Variable Rate | $ | (341 | ) | $ | (451 | ) | $ | (451 | ) | $ | 499,850 | $ | — | — | $ | 498,607 | $ | 500,728 | |||||||||||||
$ | 3,679 | $ | 706,985 | $ | 877,794 | $ | 1,103,348 | $ | 1,489,960 | $ | 6,823,792 | $ | 11,005,558 | $ | 11,033,241 |
(a) | During the three months ended March 31, 2019, Boston Properties, Inc. issued an aggregate of 14,129 shares of common stock in exchange for 14,129 common units of limited partnership held by certain limited partners of Boston Properties Limited Partnership. Of these shares, 1,200 shares were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. We relied on the exemption under Section 4(a)(2) based upon factual representations received from the limited partner who received the common shares. |
(b) | Not applicable. |
(c) | Issuer Purchases of Equity Securities. |
Period | (a) Total Number of Shares of Common Stock Purchased | (b) Average Price Paid per Common Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased | ||||
January 1, 2019 - January 31, 2019 | 6,411 | (1) | $ | 119.07 | N/A | N/A | ||
February 1, 2019 - February 28, 2019 | 1,283 | (2)(4) | $ | 119.58 | N/A | N/A | ||
March 1, 2019 - March 31, 2019 | 19 | (3)(4) | $ | 0.01 | N/A | N/A | ||
Total | 7,713 | $ | 118.86 | N/A | N/A |
(1) | Represents shares of common stock of Boston Properties, Inc. surrendered on January 15, 2019 by employees to Boston Properties, Inc. to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common stock. |
(2) | Includes 114 shares of restricted common stock of Boston Properties, Inc. repurchased in connection with the termination of a certain employee’s employment with Boston Properties, Inc. and 1,169 shares of common stock surrendered by employees to Boston Properties, Inc. to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common stock. |
(3) | Represents shares of restricted common stock of Boston Properties, Inc. repurchased in connection with the termination of certain employees’ employment with Boston Properties, Inc. |
(4) | Under the terms of the applicable restricted stock award agreements, the shares were repurchased by Boston Properties, Inc. at a price of $0.01 per share, which was the amount originally paid by such employees for such shares. |
(a) | Each time Boston Properties, Inc. issues shares of stock (other than in exchange for common units when such common units are presented for redemption), it contributes the proceeds of such issuance to Boston Properties Limited Partnership in return for an equivalent number of partnership units with rights and preferences analogous to the shares issued. During the three months ended March 31, 2019, in connection with issuances of common stock by Boston Properties, Inc. pursuant to issuances to employees of restricted common stock and exercises of non-qualified stock options under the Boston Properties, Inc. 2012 Stock Option and Incentive Plan and pursuant to issuances under the Boston Properties, Inc. 1999 Non-Qualified Employee Stock Purchase Plan, Boston Properties Limited Partnership issued an aggregate of approximately 50,592 common units to Boston Properties, Inc. in exchange for approximately $2.67 million, the aggregate proceeds of such common stock issuances to Boston Properties, Inc. Such units were issued in reliance on an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. |
(b) | Not Applicable. |
(c) | Issuer Purchases of Equity Securities. |
Period | (a) Total Number of Units Purchased | (b) Average Price Paid per Unit | (c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs | (d) Maximum Number (or Approximate Dollar Value) of Units that May Yet be Purchased | ||||
January 1, 2019 - January 31, 2019 | 6,411 | (1) | $ | 119.07 | N/A | N/A | ||
February 1, 2019 - February 28, 2019 | 380,470 | (2)(4) | $ | 0.65 | N/A | N/A | ||
March 1, 2019 - March 31, 2019 | 1,838 | (3)(4) | $ | 0.25 | N/A | N/A | ||
Total | 388,719 | $ | 2.60 | N/A | N/A |
(1) | Represents common units previously held by Boston Properties, Inc. that were redeemed in connection with the surrender of shares of restricted Common Stock of Boston Properties, Inc. by employees to Boston Properties, Inc. to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common stock. |
(2) | Includes 364,980 2016 MYLTIP units. The measurement period for such 2016 MYLTIP units ended on February 9, 2019 and Boston Properties, Inc.’s total return to stockholders was sufficient for employees to earn and therefore become eligible to vest in a portion of the 2016 MYLTIP units. Under the terms of the applicable 2016 MYLTIP award agreements, the 364,980 unearned 2016 MYLTIP units were repurchased at a price of $0.25 per 2016 MYLTIP unit, which was the amount originally paid by each employee for the units. Also includes (1) 1,169 common units previously held by Boston Properties, Inc. that were redeemed in connection with the surrender of shares of restricted common stock of Boston Properties, Inc. by employees to Boston Properties, Inc. to satisfy such employees’ tax withholding obligations in connection with the vesting of restricted common stock, (2) 4,466 LTIP units, 620 2016 MYLTIP units, 3,950 2017 MYLTIP units and 5,171 2018 MYLTIP units that were repurchased by Boston Properties Limited Partnership in connection with the termination of a certain employee’s employment with Boston Properties, Inc. and (3) 114 common units previously held by Boston Properties, Inc. that were redeemed in connection with the repurchase of restricted shares of common stock of Boston Properties, Inc. in connection with the termination of a certain employee’s employment with Boston Properties, Inc. |
(3) | Includes 1,819 LTIP units that were repurchased by Boston Properties Limited Partnership in connection with the termination of an employee’s employment with Boston Properties, Inc. and 19 common units previously held by Boston Properties, Inc. that were redeemed in connection with the repurchase of restricted shares of common stock of Boston Properties, Inc. in connection with the termination of an employee’s employment with Boston Properties, Inc. |
(4) | Under the terms of the applicable restricted stock award agreements, LTIP unit vesting agreements, and MYLTIP award agreements, the shares were repurchased at a price of $0.01 per share and the LTIP units and MYLTIP units were repurchased at a price $0.25 per unit, which was the amount originally paid by such employees for such shares and units. |
(a) | None. |
(b) | None. |
(a) | Exhibits |
31.1 | — | ||
31.2 | — | ||
31.3 | — | ||
31.4 | — | ||
32.1 | — | ||
32.2 | — | ||
32.3 | — | ||
32.4 | — | ||
101 | — | The following materials from Boston Properties, Inc.’s and Boston Properties Limited Partnership’s Quarterly Reports on Form 10-Q for the quarter ended March 31, 2019 formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Comprehensive Income, (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Capital and Noncontrolling Interests (vi) the Consolidated Statements of Cash Flows, and (vii) related notes to these financial statements. |
BOSTON PROPERTIES, INC. | ||
May 8, 2019 | /s/ MICHAEL R. WALSH | |
Michael R. Walsh | ||
Chief Accounting Officer (duly authorized officer and principal accounting officer) |
BOSTON PROPERTIES LIMITED PARTNERSHIP | ||
By: Boston Properties, Inc., its General Partner | ||
May 8, 2019 | /s/ MICHAEL R. WALSH | |
Michael R. Walsh | ||
Chief Accounting Officer (duly authorized officer and principal accounting officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Boston Properties, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ OWEN D. THOMAS | |
Owen D. Thomas | |
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Boston Properties, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MICHAEL E. LABELLE | |
Michael E. LaBelle | |
Chief Financial Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Boston Properties Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ OWEN D. THOMAS |
Owen D. Thomas Chief Executive Officer of Boston Properties, Inc. General Partner of Boston Properties Limited Partnership |
1. | I have reviewed this Quarterly Report on Form 10-Q of Boston Properties Limited Partnership; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MICHAEL E. LABELLE |
Michael E. LaBelle Chief Financial Officer of Boston Properties, Inc. General Partner of Boston Properties Limited Partnership |
/s/ OWEN D. THOMAS | |
Owen D. Thomas | |
Chief Executive Officer |
/s/ MICHAEL E. LABELLE | |
Michael E. LaBelle | |
Chief Financial Officer |
/s/ OWEN D. THOMAS |
Owen D. Thomas Chief Executive Officer of Boston Properties, Inc. General Partner of Boston Properties Limited Partnership |
/s/ MICHAEL E. LABELLE |
Michael E. LaBelle Chief Financial Officer of Boston Properties, Inc. General Partner of Boston Properties Limited Partnership |
Document And Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
May 02, 2019 |
|
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BOSTON PROPERTIES INC | |
Amendment Flag | false | |
Entity Central Index Key | 0001037540 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 154,519,867 | |
Boston Properties Limited Partnership | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BOSTON PROPERTIES LTD PARTNERSHIP | |
Amendment Flag | false | |
Entity Central Index Key | 0001043121 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 0 |
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Net income | $ 131,159 | $ 216,312 | |||||
Other comprehensive income (loss): | |||||||
Effective portion of interest rate contracts | (2,628) | 0 | |||||
Amortization of interest rate contracts | [1] | 1,666 | 1,666 | ||||
Other comprehensive income (loss) | (962) | 1,666 | |||||
Comprehensive income | 130,197 | 217,978 | |||||
Comprehensive income attributable to noncontrolling interests | (30,429) | (37,666) | |||||
Other comprehensive (income) loss attributable to noncontrolling interests | (31) | (299) | |||||
Comprehensive income attributable to the Company | 99,737 | 180,013 | |||||
Boston Properties Limited Partnership | |||||||
Net income | 134,837 | 220,766 | |||||
Other comprehensive income (loss): | |||||||
Effective portion of interest rate contracts | (2,628) | 0 | |||||
Amortization of interest rate contracts | [2] | 1,666 | 1,666 | ||||
Other comprehensive income (loss) | (962) | 1,666 | |||||
Comprehensive income | 133,875 | 222,432 | |||||
Comprehensive income attributable to noncontrolling interests | (18,974) | (17,378) | |||||
Comprehensive income attributable to the Company | $ 114,901 | $ 205,054 | |||||
|
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock [Member] |
Preferred Stock [Member] |
Additional Paid-In Capital [Member] |
Dividends In Excess Of Earnings [Member] |
Treasury Stock, At Cost [Member] |
Accumulated Other Comprehensive (Income) Loss [Member] |
Noncontrolling Interests - Common units [Member] |
Noncontrolling interest - property partnerships [Member] |
---|---|---|---|---|---|---|---|---|---|
Equity, value at Dec. 31, 2017 | $ 8,102,456 | $ 1,543 | $ 200,000 | $ 6,377,908 | $ (712,343) | $ (2,722) | $ (50,429) | $ 604,739 | $ 1,683,760 |
Equity, shares at Dec. 31, 2017 | 154,325,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of a change in accounting principle | 5,496 | 4,933 | 563 | ||||||
Conversion of operating partnership units to Common Stock, shares | 24,000 | ||||||||
Conversion of operating partnership units to Common Stock, value | 0 | $ 1 | 831 | (832) | |||||
Allocated net income for the year | 216,312 | 178,646 | 20,432 | 17,234 | |||||
Dividends/distributions declared | (140,466) | (126,115) | (14,351) | ||||||
Shares issued pursuant to stock purchase plan, shares | 3,000 | ||||||||
Shares issued pursuant to stock purchase plan, value | 429 | 429 | |||||||
Net activity from stock option and incentive plan, shares | 10,000 | ||||||||
Net activity from stock option and incentive plan, value | 13,620 | (185) | 13,805 | ||||||
Contributions from noncontrolling interests in property partnerships | 15,267 | 15,267 | |||||||
Distributions to noncontrolling interests in property partnerships | (30,690) | (30,690) | |||||||
Amortization of interest rate contracts | 1,666 | 1,367 | 155 | 144 | |||||
Reallocation of noncontrolling interest | 0 | 5,164 | (5,164) | ||||||
Equity, value at Mar. 31, 2018 | 8,184,090 | $ 1,544 | 200,000 | 6,384,147 | (654,879) | (2,722) | (49,062) | 619,347 | 1,685,715 |
Equity, shares at Mar. 31, 2018 | 154,362,000 | ||||||||
Equity, value at Dec. 31, 2018 | $ 8,213,968 | $ 1,545 | 200,000 | 6,407,623 | (675,534) | (2,722) | (47,741) | 619,352 | 1,711,445 |
Equity, shares at Dec. 31, 2018 | 154,458,478 | 154,458,000 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of a change in accounting principle | $ (4,379) | (3,864) | (445) | (70) | |||||
Conversion of operating partnership units to Common Stock, shares | 14,000 | ||||||||
Conversion of operating partnership units to Common Stock, value | 0 | 492 | (492) | ||||||
Allocated net income for the year | 131,159 | 100,730 | 11,599 | 18,830 | |||||
Dividends/distributions declared | (166,600) | (149,415) | (17,185) | ||||||
Shares issued pursuant to stock purchase plan, shares | 4,000 | ||||||||
Shares issued pursuant to stock purchase plan, value | 373 | 373 | |||||||
Net activity from stock option and incentive plan, shares | 39,000 | ||||||||
Net activity from stock option and incentive plan, value | 16,469 | 3,059 | 13,410 | ||||||
Contributions from noncontrolling interests in property partnerships | 4,387 | 4,387 | |||||||
Distributions to noncontrolling interests in property partnerships | (24,128) | (24,128) | |||||||
Effective portion of interest rate contracts | (2,628) | (2,359) | (269) | ||||||
Amortization of interest rate contracts | 1,666 | 1,366 | 156 | 144 | |||||
Reallocation of noncontrolling interest | 0 | 3,065 | (3,065) | ||||||
Equity, value at Mar. 31, 2019 | $ 8,170,287 | $ 1,545 | $ 200,000 | $ 6,414,612 | $ (728,083) | $ (2,722) | $ (48,734) | $ 623,061 | $ 1,710,608 |
Equity, shares at Mar. 31, 2019 | 154,515,486 | 154,515,000 |
Consolidated Statement of Partners' Capital Statement - USD ($) $ in Thousands |
Total |
General Partner [Member] |
Limited Partner [Member] |
Partners' Capital (General and Limited Partners) [Member] |
Preferred Units [Member] |
Accumulated Other Comprehensive (Income) Loss [Member] |
Noncontrolling interest - property partnerships [Member] |
Noncontrolling interest - property partnerships [Member]
Boston Properties Limited Partnership
|
Total Capital [Member] |
Noncontrolling interest - Redeemable partnership units [Member] |
---|---|---|---|---|---|---|---|---|---|---|
Common Stock, Shares, Outstanding | 1,720,000 | 152,606,000 | ||||||||
Beginning Balance at Dec. 31, 2017 | $ 3,664,436 | $ 193,623 | $ (50,429) | $ 1,683,760 | $ 5,491,390 | $ 2,292,263 | ||||
Cumulative effect of a change in accounting principle | $ 5,496 | 4,933 | 4,933 | 563 | ||||||
Contributions | 1,000 | 11,000 | ||||||||
Contributions | 1,452 | 1,452 | 34,258 | |||||||
Allocated net income for the year | 180,475 | 2,625 | 17,234 | 200,334 | 20,432 | |||||
Distributions | (123,490) | (2,625) | (126,115) | (14,351) | ||||||
Unearned compensation | (1,208) | (1,208) | (20,453) | |||||||
Converstion of redeemable partnership units | 1,000 | 23,000 | ||||||||
Conversion of redeemable partnership units | 832 | 832 | (832) | |||||||
Adjustment to reflect redeemable partnership units at redemption value | 115,432 | 115,432 | (115,432) | |||||||
Amortization of interest rate contracts | 1,666 | 1,367 | 144 | 1,511 | 155 | |||||
Contributions from noncontrolling interests in property partnerships | 15,267 | 15,267 | 15,267 | |||||||
Distributions to noncontrolling interests in property partnerships | $ (30,690) | (30,690) | (30,690) | |||||||
Ending Balance at Mar. 31, 2018 | 3,842,862 | 193,623 | (49,062) | 1,685,715 | 5,673,138 | 2,196,603 | ||||
Common Stock, Shares, Outstanding | 1,722,000 | 152,640,000 | ||||||||
Common Stock, Shares, Outstanding | 154,458,478 | 1,722,000 | 152,736,000 | |||||||
Beginning Balance at Dec. 31, 2018 | 4,054,996 | 193,623 | (47,741) | 1,711,445 | 5,912,323 | 2,000,591 | ||||
Cumulative effect of a change in accounting principle | $ (4,379) | (3,864) | (70) | $ 70 | (3,934) | (445) | ||||
Contributions | 2,000 | 41,000 | ||||||||
Contributions | 4,820 | 4,820 | 34,400 | |||||||
Allocated net income for the year | 101,783 | 2,625 | 18,830 | 123,238 | 11,599 | |||||
Distributions | (146,790) | (2,625) | (149,415) | (17,185) | ||||||
Unearned compensation | (1,388) | (1,388) | (20,990) | |||||||
Converstion of redeemable partnership units | 1,000 | 13,000 | ||||||||
Conversion of redeemable partnership units | 492 | 492 | (492) | |||||||
Adjustment to reflect redeemable partnership units at redemption value | (406,875) | (406,875) | 406,875 | |||||||
Effective portion of interest rate contracts | (2,628) | (2,359) | (2,359) | (269) | ||||||
Amortization of interest rate contracts | 1,666 | 1,366 | 144 | 1,510 | 156 | |||||
Contributions from noncontrolling interests in property partnerships | 4,387 | 4,387 | 4,387 | |||||||
Distributions to noncontrolling interests in property partnerships | $ (24,128) | (24,128) | (24,128) | |||||||
Ending Balance at Mar. 31, 2019 | $ 3,603,174 | $ 193,623 | $ (48,734) | $ 1,710,608 | $ 5,458,671 | $ 2,414,240 | ||||
Common Stock, Shares, Outstanding | 154,515,486 | 1,725,000 | 152,790,000 |
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Cash flows from operating activities: | ||
Net income | $ 131,159 | $ 216,312 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 164,594 | 165,797 |
Amortization of right of use assets - operating leases | 605 | 0 |
Impairment loss | 24,038 | 0 |
Non-cash compensation expense | 15,050 | 14,772 |
Income from unconsolidated joint ventures | (213) | (461) |
Distributions of net cash flow from operations of unconsolidated joint ventures | 2,650 | 847 |
(Gains) losses from investments in securities | (2,969) | 126 |
Non-cash portion of interest expense | 5,447 | 5,299 |
Losses (gains) on sales of real estate | 905 | (96,397) |
Change in assets and liabilities: | ||
Tenant and other receivables, net | (14,000) | 22,790 |
Note receivable | (125) | 0 |
Accrued rental income, net | (15,570) | (26,319) |
Prepaid expenses and other assets | (68,554) | (66,968) |
Lease liabilities - operating leases | 370 | 0 |
Accounts payable and accrued expenses | 258 | (13,913) |
Accrued interest payable | (160) | 12,399 |
Other liabilities | (17,831) | 23,089 |
Tenant leasing costs | (18,420) | (31,595) |
Total adjustments | 76,075 | 9,466 |
Net cash provided by operating activities | 207,234 | 225,778 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (43,061) | 0 |
Construction in progress | (85,632) | (150,060) |
Building and other capital improvements | (32,719) | (53,550) |
Tenant improvements | (54,242) | (47,157) |
Proceeds from sales of real estate | 20,019 | 116,120 |
Capital contributions to unconsolidated joint ventures | (26,995) | (48,823) |
Investments in securities, net | (885) | (318) |
Net cash used in investing activities | (223,515) | (183,788) |
Cash flows from financing activities: | ||
Repayments of mortgage notes payable | (5,645) | (5,333) |
Borrowings on unsecured line of credit | 50,000 | 260,000 |
Repayments of unsecured line of credit | (50,000) | (190,000) |
Payments on finance lease obligations | (470) | 0 |
Payments on capital lease obligations | 0 | (3) |
Payments on real estate financing transactions | 0 | (444) |
Deferred financing costs | (186) | (16) |
Net proceeds from equity transactions | 1,792 | (723) |
Dividends and distributions | (166,362) | (140,288) |
Contributions from noncontrolling interests in property partnerships | 4,387 | 15,267 |
Distributions to noncontrolling interests in property partnerships | (24,128) | (30,690) |
Net cash used in financing activities | (190,612) | (92,230) |
Net decrease in cash and cash equivalents and cash held in escrows | (206,893) | (50,240) |
Cash and cash equivalents and cash held in escrows, beginning of period | 639,191 | 505,369 |
Cash and cash equivalents and cash held in escrows, end of period | 432,298 | 455,129 |
Reconciliation of cash and cash equivalents and cash held in escrows: | ||
Cash and cash equivalents, beginning of period | 543,359 | 434,767 |
Cash held in escrows, beginning of period | 95,832 | 70,602 |
Cash and Cash Equivalents, end of period | 360,091 | 294,571 |
Cash held in escrows, end of period | 72,207 | 160,558 |
Supplemental disclosures: | ||
Cash paid for interest | 107,094 | 89,412 |
Interest capitalized | 11,813 | 17,378 |
Non-cash investing and financing activities: | ||
Write-off of fully depreciated real estate | (31,640) | (29,609) |
Additions to real estate included in accounts payable and accrued expenses | 49,689 | 35,245 |
Real estate acquired through finance lease | 122,563 | 0 |
Dividends and distributions declared but not paid | 165,352 | 139,218 |
Conversions of noncontrolling interests to stockholders’ equity / partners' capital | 492 | 832 |
Issuance of restricted securities to employees | 37,428 | 36,433 |
Boston Properties Limited Partnership | ||
Cash flows from operating activities: | ||
Net income | 134,837 | 220,766 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 162,682 | 163,853 |
Amortization of right of use assets - operating leases | 605 | 0 |
Impairment loss | 22,272 | 0 |
Non-cash compensation expense | 15,050 | 14,772 |
Income from unconsolidated joint ventures | (213) | (461) |
Distributions of net cash flow from operations of unconsolidated joint ventures | 2,650 | 847 |
(Gains) losses from investments in securities | (2,969) | 126 |
Non-cash portion of interest expense | 5,447 | 5,299 |
Losses (gains) on sales of real estate | 905 | (98,907) |
Change in assets and liabilities: | ||
Tenant and other receivables, net | (14,000) | 22,790 |
Note receivable | (125) | 0 |
Accrued rental income, net | (15,570) | (26,319) |
Prepaid expenses and other assets | (68,554) | (66,968) |
Lease liabilities - operating leases | 370 | 0 |
Accounts payable and accrued expenses | 258 | (13,913) |
Accrued interest payable | (160) | 12,399 |
Other liabilities | (17,831) | 23,089 |
Tenant leasing costs | (18,420) | (31,595) |
Total adjustments | 72,397 | 5,012 |
Net cash provided by operating activities | 207,234 | 225,778 |
Cash flows from investing activities: | ||
Acquisitions of real estate | (43,061) | 0 |
Construction in progress | (85,632) | (150,060) |
Building and other capital improvements | (32,719) | (53,550) |
Tenant improvements | (54,242) | (47,157) |
Proceeds from sales of real estate | 20,019 | 116,120 |
Capital contributions to unconsolidated joint ventures | (26,995) | (48,823) |
Investments in securities, net | (885) | (318) |
Net cash used in investing activities | (223,515) | (183,788) |
Cash flows from financing activities: | ||
Repayments of mortgage notes payable | (5,645) | (5,333) |
Borrowings on unsecured line of credit | 50,000 | 260,000 |
Repayments of unsecured line of credit | (50,000) | (190,000) |
Payments on finance lease obligations | (470) | 0 |
Payments on capital lease obligations | 0 | (3) |
Payments on real estate financing transactions | 0 | (444) |
Deferred financing costs | (186) | (16) |
Net proceeds from equity transactions | 1,792 | (723) |
Dividends and distributions | (166,362) | (140,288) |
Contributions from noncontrolling interests in property partnerships | 4,387 | 15,267 |
Distributions to noncontrolling interests in property partnerships | (24,128) | (30,690) |
Net cash used in financing activities | (190,612) | (92,230) |
Net decrease in cash and cash equivalents and cash held in escrows | (206,893) | (50,240) |
Cash and cash equivalents and cash held in escrows, beginning of period | 639,191 | 505,369 |
Cash and cash equivalents and cash held in escrows, end of period | 432,298 | 455,129 |
Reconciliation of cash and cash equivalents and cash held in escrows: | ||
Cash and cash equivalents, beginning of period | 543,359 | 434,767 |
Cash held in escrows, beginning of period | 95,832 | 70,602 |
Cash and Cash Equivalents, end of period | 360,091 | 294,571 |
Cash held in escrows, end of period | 72,207 | 160,558 |
Supplemental disclosures: | ||
Cash paid for interest | 107,094 | 89,412 |
Interest capitalized | 11,813 | 17,378 |
Non-cash investing and financing activities: | ||
Write-off of fully depreciated real estate | (31,640) | (29,609) |
Additions to real estate included in accounts payable and accrued expenses | 49,689 | 35,245 |
Real estate acquired through finance lease | 122,563 | 0 |
Dividends and distributions declared but not paid | 165,352 | 139,218 |
Conversions of noncontrolling interests to stockholders’ equity / partners' capital | 492 | 832 |
Issuance of restricted securities to employees | $ 37,428 | $ 36,433 |
Organization |
3 Months Ended | ||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||
Organization | 1. Organization Boston Properties, Inc., a Delaware corporation, is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Boston Properties, Inc. is the sole general partner of Boston Properties Limited Partnership, its operating partnership, and at March 31, 2019 owned an approximate 89.5% (89.7% at December 31, 2018) general and limited partnership interest in Boston Properties Limited Partnership. Unless stated otherwise or the context requires, the “Company” refers to Boston Properties, Inc. and its subsidiaries, including Boston Properties Limited Partnership, and its consolidated subsidiaries. Partnership interests in Boston Properties Limited Partnership include:
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 Boston Properties Limited Partnership 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, Boston Properties Limited Partnership is obligated to redeem the OP Unit for cash equal to the 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 the 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. The Company uses LTIP Units as a form of equity-based award for annual long-term incentive equity compensation. The Company has also issued LTIP Units to employees in the form of (1) 2012 outperformance plan awards (“2012 OPP Units”) and (2) 2013, 2014, 2015, 2016, 2017, 2018 and 2019 multi-year, long-term incentive program awards (also referred to as “MYLTIP Units”), each of which, upon the satisfaction of certain performance and vesting conditions, is convertible into one OP Unit. The three-year measurement periods for the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units expired on February 6, 2015, February 4, 2016, February 3, 2017, February 4, 2018 and February 9, 2019, respectively, and Boston Properties, Inc.’s total stockholder return (“TSR”) was sufficient for employees to earn and therefore become eligible to vest in a portion of the awards. Unless and until they are earned, the rights, preferences and privileges of the 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units differ from other LTIP Units granted to employees (including the 2012 OPP Units, the 2013 MYLTIP Units, the 2014 MYLTIP Units, the 2015 MYLTIP Units and the 2016 MYLTIP Units, which have been earned). Therefore, unless specifically noted otherwise, all references to LTIP Units exclude the 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units. LTIP Units (including the earned 2012 OPP Units, the 2013 MYLTIP Units, the 2014 MYLTIP Units, the 2015 MYLTIP Units and 2016 MYLTIP 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 Notes 7, 8 and 10). At March 31, 2019, there was one series of Preferred Units outstanding (i.e., Series B Preferred Units). The Series B Preferred Units were issued to Boston Properties, Inc. on March 27, 2013 in connection with the issuance of 80,000 shares (8,000,000 depositary shares each representing 1/100th of a share) of 5.25% Series B Cumulative Redeemable Preferred Stock (the “Series B Preferred Stock”). Boston Properties, Inc. contributed the net proceeds from the offering to Boston Properties Limited Partnership in exchange for 80,000 Series B Preferred Units having terms and preferences generally mirroring those of the Series B Preferred Stock (See Note 8). Properties At March 31, 2019, the Company owned or had interests in a portfolio of 196 commercial real estate properties (the “Properties”) aggregating approximately 51.4 million net rentable square feet of primarily Class A office properties, including eleven properties under construction/redevelopment totaling approximately 5.3 million net rentable square feet. At March 31, 2019, the Properties consisted of:
The Company considers Class A office properties to be well-located buildings that are professionally managed and maintained, attract high-quality tenants and command upper-tier rental rates, and that are modern structures or have been modernized to compete with newer buildings. |
Basis Of Presentation And Summary Of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Boston Properties Limited Partnership, nor does it have employees of its own. Boston Properties Limited Partnership, not Boston Properties, Inc., generally executes all significant business relationships other than transactions involving securities of Boston Properties, Inc. All majority-owned subsidiaries and joint ventures 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 Company’s 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 generally accepted accounting principles (“GAAP”) 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 GAAP 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 GAAP. These financial statements should be read in conjunction with the Company’s financial statements and notes thereto contained in the Company’s Annual Report in the Company’s Form 10-K for its fiscal year ended December 31, 2018. Fair Value of Financial Instruments The Company follows the authoritative guidance for fair value measurements when valuing its financial instruments for disclosure purposes. Boston Properties Limited Partnership determines the fair value of its unsecured senior notes using market prices. The inputs used in determining the fair value of Boston Properties Limited Partnership’s unsecured senior notes is categorized at a Level 1 basis (as defined in Accounting Standards Codification ("ASC") 820 “Fair Value Measurements and Disclosures” (“ASC 820”)) due to the fact that it uses quoted market rates to value these instruments. However, the inputs used in determining the fair value could be categorized at a Level 2 basis (as defined in ASC 820) if trading volumes are low. The Company determines the fair value of its related party note receivable, note receivable and mortgage notes payable using discounted cash flow analysis by discounting the spread between the future contractual interest payments and hypothetical future interest payments on note receivables / mortgage debt based on current market rates for similar securities. In determining the current market rates, the Company adds its estimates of market spreads to the quoted yields on federal government treasury securities with similar maturity dates to its debt. The inputs used in determining the fair value of the Company’s related party note receivable, note receivable, and mortgage notes payable are categorized at a Level 3 basis (as defined in ASC 820) due to the fact that the Company considers the rates used in the valuation techniques to be unobservable inputs. To the extent that there are outstanding borrowings under the unsecured line of credit or unsecured term loan, the Company utilizes a discounted cash flow methodology in order to estimate the fair value. To the extent that credit spreads have changed since the origination, the net present value of the difference between future contractual interest payments and future interest payments based on the Company’s estimate of a current market rate would represent the difference between the book value and the fair value. The Company’s estimate of a current market rate is based upon the rate, considering current market conditions and Boston Properties Limited Partnership's specific credit profile, at which it estimates it could obtain similar borrowings. To the extent there are outstanding borrowings, this current market rate is estimated and therefore would be primarily based upon a Level 3 input. Because the Company’s valuations of its financial instruments are based on these types of estimates, the actual fair values of its financial instruments may differ materially if the Company’s estimates do not prove to be accurate, and the Company’s estimated fair values for these instruments as of the end of the applicable reporting period are not necessarily indicative of estimated or actual fair values in future reporting periods. The following table presents the aggregate carrying value of the Company’s related party note receivable, note receivable, mortgage notes payable, net, unsecured senior notes, net, unsecured line of credit and unsecured term loan, net and the Company’s corresponding estimate of fair value as of March 31, 2019 and December 31, 2018 (in thousands):
Variable Interest Entities (VIEs) Consolidated VIEs are those for which the Company is considered to be the primary beneficiary of a VIE. The primary beneficiary is the entity that has a controlling financial interest in the VIE, which is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the VIE’s performance and (2) the obligation to absorb losses or the right to receive the returns from the VIE that could potentially be significant to the VIE. The Company has determined that it is the primary beneficiary for seven of the ten entities that are VIEs. Consolidated Variable Interest Entities As of March 31, 2019, Boston Properties, Inc. has identified seven consolidated VIEs, including Boston Properties Limited Partnership. Excluding Boston Properties Limited Partnership, the VIEs consisted of the following six in-service properties: 767 Fifth Avenue (the General Motors Building), Times Square Tower, 601 Lexington Avenue, Atlantic Wharf Office Building, 100 Federal Street and Salesforce Tower (See Note 12). The Company consolidates these VIEs because it is the primary beneficiary. The third parties’ interests in these consolidated entities (i.e., excluding Boston Properties Limited Partnership's interest) are reflected as noncontrolling interest in property partnerships in the accompanying Consolidated Financial Statements (See Note 7). In addition, Boston Properties, Inc.’s only significant asset is its investment in Boston Properties Limited Partnership and, consequently, substantially all of Boston Properties, Inc.’s assets and liabilities are the assets and liabilities of Boston Properties Limited Partnership. Variable Interest Entities Not Consolidated The Company has determined that its 7750 Wisconsin Avenue LLC and Office Tower Developer LLC joint ventures, which own 7750 Wisconsin Avenue and 100 Causeway Street (which is the office component of The Hub on Causeway mixed-use development project), respectively, are VIEs. The Company also determined that the landlord entity for its Platform 16 ground lease is a VIE. The Company does not consolidate these entities as the Company does not have the power to direct the activities that, when taken together, most significantly impact the VIE’s performance and, therefore, the Company is not considered to be the primary beneficiary. New Accounting Pronouncements New Accounting Pronouncements Adopted Leases On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, “Leases (Topic 842)” (“ASU 2016-02” or "Topic 842"). For information pertaining to the Company's adoption and disclosures with respect to leases, see Note 4. |
Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | 3. Real Estate Boston Properties, Inc. Real estate consisted of the following at March 31, 2019 and December 31, 2018 (in thousands):
Boston Properties Limited Partnership Real estate consisted of the following at March 31, 2019 and December 31, 2018 (in thousands):
Development On February 14, 2019, the Company announced that it had entered into a 15-year lease with Google, LLC for approximately 362,000 net rentable square feet of Class A office space in a build-to-suit development project to be located at the Company’s 325 Main Street property at Kendall Center in Cambridge, Massachusetts. 325 Main Street currently consists of an approximately 115,000 net rentable square foot Class A office property that will be demolished and developed into an approximately 400,000 net rentable square foot Class A office property, including approximately 38,000 net rentable square feet of retail space. There can be no assurance that the project will commence. Ground Lease On January 24, 2019, the ground lessor under the Company's 65-year ground lease for land totaling approximately 5.6 acres at Platform 16 located in San Jose, California, which will support approximately 1.1 million square feet of commercial office space, made available for lease to the Company the remaining land parcels. As a result, the Company recognized the remaining portion of the right of use finance lease asset and finance lease liability. The ground lease provides the Company with the right to purchase the land during a 12-month period commencing February 1, 2020 at a purchase price of approximately $134.8 million. The Company is reasonably certain that it will exercise the option to purchase the land and as a result, the Company has concluded that the lease should be accounted for as a finance lease. As a result, the Company recorded an approximately $122.6 million right of use asset - finance lease and a lease liability - finance lease on the Company’s Consolidated Balance Sheets. Finance lease assets and liabilities are accounted for at the lower of fair market value or the present value of future lease payments. The finance lease is for land only. Therefore, the Company will not depreciate the right of use asset - finance lease because land is assumed to have an indefinite life. As of January 24, 2019, the lease payments from the finance lease are as follows (in thousands):
Acquisitions On January 10, 2019, the Company acquired land parcels at its Carnegie Center property located in Princeton, New Jersey for a gross purchase price of approximately $51.5 million, which includes an aggregate of approximately $8.6 million of additional amounts that are payable in the future to the seller upon the development or sale of each of the parcels. The land parcels could support approximately 1.7 million square feet of development. Dispositions On January 24, 2019, the Company completed the sale of its 2600 Tower Oaks Boulevard property located in Rockville, Maryland for a gross sales price of approximately $22.7 million. Net cash proceeds totaled approximately $21.4 million, resulting in a loss on sale of real estate totaling approximately $0.6 million. The Company recognized an impairment loss totaling approximately $3.1 million for Boston Properties, Inc. and approximately $1.5 million for Boston Properties Limited Partnership during the year ended December 31, 2018. 2600 Tower Oaks Boulevard is an approximately 179,000 net rentable square foot Class A office property. 2600 Tower Oaks contributed approximately $(0.2) million of net loss to the Company for the period from January 1, 2019 through January 23, 2019 and contributed approximately $(0.2) million of net loss to the Company for the three months ended March 31, 2018. At March 31, 2019, the Company evaluated the expected hold period of its One Tower Center property and based on a shorter than expected hold period, the Company reduced the carrying value of the property to its estimated fair value at March 31, 2019 and recognized an impairment loss totaling approximately $24.0 million for Boston Properties, Inc. and approximately $22.3 million for Boston Properties Limited Partnership. The Company’s estimated fair value was based on a pending offer from a third party to acquire the property and the subsequent execution of a purchase and sale agreement on April 18, 2019 for a gross sale price of approximately $38.0 million (See Note 12). One Tower Center is an approximately 410,000 net rentable square foot Class A office property located in East Brunswick, New Jersey. |
Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases of Lessee Disclosure | 4. Leases General Adoption In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU 2016-02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease for accounting purposes is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to the prior guidance in ASC 840 -“Leases” (“Topic 840”). ASU 2016-02 requires lessors to account for leases using an approach that is substantially equivalent to Topic 840 for sales-type leases, direct financing leases and operating leases. ASU 2016-02 supersedes previous leasing standards. On July 30, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements” (“ASU 2018-11”), that (1) simplifies transition requirements for both lessees and lessors by adding an option that permits an organization to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in its financial statements and (2) allows lessors to elect, as a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the revenue guidance (ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) ("ASC 606")) that was adopted on January 1, 2018, and both of the following are met: (1) the timing and pattern of transfer of the nonlease component(s) and associated lease components are the same; and (2) the lease component, if accounted for separately, would be classified as an operating lease. If the nonlease component or components associated with the lease component are the predominant component of the combined component, an entity is required to account for the combined component in accordance with ASC 606. The Company adopted ASU 2016-02 and ASU 2018-11 effective January 1, 2019. For purposes of transition, the Company elected the practical expedient package, which has been applied consistently to all of its leases but did not elect the hindsight practical expedient. The practical expedient package did not require the Company to reassess the following: (i) whether an expired or existing contract meets the definition of a lease; (ii) the lease classification at the adoption date for existing leases; and (iii) whether costs previously capitalized as initial direct costs would continue to be amortized. This allows the Company to continue to account for its ground leases as operating leases. However, as of January 1, 2019, any new or modified ground leases may be classified as financing leases unless they meet certain conditions. The Company also elected to apply the transition provisions as of the adoption date, January 1, 2019, and not change its comparative statements. The Company recorded an adjustment to the opening balance of retained earnings related to initial direct costs that, as of January 1, 2019, had not started to amortize and are no longer allowed to be capitalized in accordance with ASU 2016-02, totaling approximately $3.9 million to Dividends in Excess of Earnings of Boston Properties, Inc. and Partners' Capital of Boston Properties Limited Partnership, approximately $0.4 million to Noncontrolling interests - Common Units of Boston Properties, Inc. and Noncontrolling Interest - Redeemable Partnership Units of Boston Properties Limited Partnership and $70,000 to Noncontrolling Interests - Property Partnerships of Boston Properties, Inc. and Noncontrolling Interests in Property Partnerships of Boston Properties Limited Partnership on the corresponding Consolidated Balance Sheets. The Company made the policy election, when it is the lessee, to not apply the revenue recognition requirements of Topic 842 to short term leases. This policy election is made by class of underlying assets and as described below, the Company considers real estate to be a class of underlying assets, and will not be further delineating it into specific uses of the real estate asset as the risk profiles are similar in nature. The Company will recognize the lease payments in net income on a straight-line basis over the lease term. Lease payments from operating leases are recognized on a straight-line basis over the term of the leases. The cumulative difference between lease revenue recognized under this method and the contractual lease payment terms is recorded as deferred rent receivable on our consolidated balance sheets. The Company reviews its trade accounts receivable, including its straight-line rent receivable, related to base rents, straight-line rent, expense reimbursements and other revenues for collectability. The Company analyzes its accounts receivable, customer credit worthiness and current economic trends when evaluating the adequacy of the collectability of the lessee’s total accounts receivable balance on a lease by lease basis. In addition, tenants in bankruptcy are analyzed and considerations are made in connection with the expected recovery of pre-petition and post-petition claims. If a lessee’s accounts receivable balance is considered uncollectible the Company will write-off the receivable balances associated with the lease to Lease revenue and cease to recognize lease income, including straight-line rent unless cash is received. If the Company subsequently determines that it is probable it will collect substantially all the remaining lessee’s lease payments under the lease term, the Company will then reinstate the straight-line balance adjusting for the amount related to the period when the lease payments were considered not probable. The Company’s reported net earnings are directly affected by management’s estimate of the collectability of its trade accounts receivable. In January 2018, the FASB issued ASU 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842” (“ASU 2018-01”), which provides an optional transition practical expedient to not evaluate, under Topic 842, existing or expired land easements that were not previously accounted for as leases under the leases guidance in Topic 840. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The effective date and transition requirements for ASU 2018-01 are the same as the effective date and transition requirements in ASU 2016-02. The Company adopted ASU 2018-01 on January 1, 2019. Lessee For leases in which the Company is the lessee, (generally ground leases), on January 1, 2019, the Company recognized a right-of-use asset and a lease liability of approximately $151.8 million and $199.3 million, respectively. The leases liability was equal to the present value of the minimum lease payments in accordance with Topic ASC 840. In addition, the Company did not know the rate implicit in any of its ground leases which were classified as operating leases, and accordingly used the Company's incremental borrowing rate ("IBR") to determine the net present value of the minimum lease payments. In order to determine the IBR, the Company utilized a market-based approach to estimate the incremental borrowing rate for each individual lease. The approach required significant judgment. Therefore, the Company utilized different data sets to estimate base IBRs via an analysis of the following weighted-components:
The Company then applied adjustments to account for considerations related to term and interpolated the IBR. The Company has four non-cancelable ground lease obligations, which were classified as operating leases, with various initial term expiration dates through 2114. The Company recognizes ground rent expense on a straight-line basis over the term of the respective ground lease agreements. None of the amounts disclosed below for these ground leases contain variable payments, extension options or residual value guarantees. One of the ground leases does have an extension option. However, lease payments for this ground lease are based on fair market value and as such have not been included in the analysis below. The Company has four finance lease obligations with various initial term expiration dates through 2036. The following tables provide quantitative information for the Company's operating and finance leases as of March 31, 2019 (dollars in thousands):
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The following table provides a maturity analysis for the Company's future contractual minimum lease payments to be made by the Company as of December 31, 2018, under non-cancelable ground leases which expire on various dates through 2114:
The following table provides a maturity analysis for the Company's future minimum lease payments, as of December 31, 2018, related to the four capital leases, through 2036:
The following table provides a maturity analysis for the Company's lease liabilities related to its operating and finance leases as of March 31, 2019 (in thousands):
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Lessor, Operating Leases | Lessor The Company leases primarily Class A office, retail and residential space to tenants. These leases may contain extension and termination options, that are predominately at the sole discretion of the tenant. In a few instances, the leases also contain purchase options, which would be exercisable at fair market value. Also, certain of the Company's leases include rental payments that are based on a percentage of the tenant sales in excess of contractual amounts. ASU 2018-11 provides lessors a practical expedient to not separate nonlease components from the associated lease component if certain criteria stated above are met for each class of underlying assets. The guidance in Topic 842 defines "underlying asset" as "an asset that is the subject of a lease for which a right to use that asset has been conveyed to a lessee. The underlying asset could be a physically distinct portion of a single asset." Based on the above guidance, the Company considers real estate assets as a class of underlying assets and will not be further delineating it into specific uses of the real estate asset as the risk profiles are similar in nature. Lease components are elements of an arrangement that provide the customer with the right to use an identified asset. Nonlease components are distinct elements of a contract that are not related to securing the use of the leased asset and revenue is recognized in accordance with ASC 606. The Company considers common area maintenance (CAM) and service income associated with tenant work orders to be nonlease components because they represent delivery of a separate service but are not considered a cost of securing the identified asset. In the case of the Company's business, the identified asset would be the leased real estate (office, retail or residential). The Company assessed and concluded that the timing and pattern of transfer for nonlease components and the associated lease component are the same. The Company determined that the predominate component was the lease component and as such its leases will continue to qualify as operating leases and the Company has made a policy election to account for and present the lease component and the nonlease component as a single component in the revenue section of the Consolidated Statements of Operations labeled Lease. Prior to the adoption of Topic 842, nonlease components had been included within Recoveries from Tenants Revenue, Parking and Other Revenue and Development and Management Services Revenue on the Company's Consolidated Statements of Operations. In addition, under ASU 2016-02, lessors will only capitalize incremental direct leasing costs. As a result, starting January 1, 2019, the Company no longer capitalizes non-incremental legal costs and internal leasing wages. These costs are expensed as incurred. The expensing of these items is included within General and Administrative Expense on the Consolidated Statements of Operations. The following table summarizes the components of lease revenue recognized during the three months ended March 31, 2019 included within the Company's Consolidated Statements of Operations (in thousands):
The Company's properties are leased to tenants under operating leases with initial term expiration dates ranging from 2019 to 2049. The future contractual minimum lease payments to be received (excluding operating expense reimbursements) by the Company as of December 31, 2018, under non-cancelable operating leases which expire on various dates through 2049:
The future contractual lease payments to be received (excluding operating expense reimbursements) by the Company as of March 31, 2019, under non-cancelable operating leases which expire on various dates through 2049:
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Investments In Unconsolidated Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments In Unconsolidated Joint Ventures | 5. Investments in Unconsolidated Joint Ventures The investments in unconsolidated joint ventures consist of the following at March 31, 2019 and December 31, 2018:
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Certain of the Company’s unconsolidated joint venture agreements provide that, at certain specified times, each partner has the right to initiate a purchase or sale of its interest in the joint ventures. With limited exceptions, under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. Under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, the partners will be entitled to an additional promoted interest or payments. The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
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The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:
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On January 24, 2019, a joint venture in which the Company has a 50% interest extended the loan collateralized by its Annapolis Junction Building Six property. At the time of the extension, the outstanding balance of the loan totaled approximately $13.0 million and was scheduled to mature on November 17, 2019, with one, one-year extension option, subject to certain conditions. The extended loan has a total commitment amount of approximately $14.3 million, bears interest at a variable rate equal to LIBOR plus 2.00% per annum and matures on November 17, 2020. Annapolis Junction Building Six is a Class A office property with approximately 119,000 net rentable square feet located in Annapolis, Maryland. |
Commitments And Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 6. Commitments and Contingencies General In the normal course of business, the Company guarantees its performance of services or indemnifies third parties against its negligence. In addition, in the normal course of business, the Company guarantees to certain tenants the obligations of its subsidiaries for the payment of tenant improvement allowances and brokerage commissions in connection with their leases and limited costs arising from delays in delivery of their premises. The Company has letter of credit and performance obligations related to lender and development requirements that total approximately $7.7 million. Certain of the Company’s 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. With limited exception, under these provisions, the Company is not compelled to purchase the interest of its outside joint venture partners. From time to time, under certain of the Company’s joint venture agreements, if certain return thresholds are achieved, either the Company or its partners will be entitled to an additional promoted interest or payments. See also Note 7. From time to time, the Company (or ventures in which the Company has an ownership interest) has agreed, and may in the future agree, to (1) guarantee portions of the principal, interest and other amounts in connection with their borrowings, (2) provide customary environmental indemnifications and nonrecourse carve-outs (e.g., guarantees against fraud, misrepresentation and bankruptcy) in connection with their borrowings and (3) provide guarantees to lenders, tenants and other third parties for the completion of development projects. The Company has agreements with its outside partners whereby the partners agree to reimburse the joint venture for their share of any payments made under the guarantee. In some cases, the Company earns a fee from the applicable joint venture for providing the guarantee. In connection with the refinancing of 767 Fifth Avenue’s (the General Motors Building) secured loan by the Company’s consolidated joint venture entity, 767 Venture, LLC, the Company guaranteed the consolidated entity’s obligation to fund various reserves for tenant improvement costs and allowances, leasing commissions and free rent obligations in lieu of cash deposits. As of March 31, 2019, the maximum funding obligation under the guarantee was approximately $110.5 million. The Company earns a fee from the joint venture for providing the guarantee and has an agreement with the outside partners to reimburse the joint venture for their share of any payments made under the guarantee. As of March 31, 2019, no amounts related to the guarantee are recorded as liabilities in the Company’s consolidated financial statements. Pursuant to the lease agreement with Marriott, the Company has guaranteed the completion of the office building and parking garage on behalf of its 7750 Wisconsin Avenue joint venture and has also agreed to provide any financing guaranty that may be required with respect to third-party construction financing. The Company earns fees from the joint venture for providing the guarantees and any amounts the Company pays under the guarantee(s) will be deemed to be capital contributions by the Company to the joint venture. The Company has also agreed to fund construction costs through capital contributions to the joint venture in the event of unavailability or insufficiency of third-party construction financing. In addition, the Company has guaranteed to Marriott, as hotel manager, the completion of a hotel being developed by an affiliate of The Bernstein Companies (the Company's partner in the 7750 Wisconsin Avenue joint venture) adjacent to the office property, for which the Company earns a fee from the affiliate of The Bernstein Companies. In addition, the Company entered into agreements with affiliates of The Bernstein Companies whereby the Company could be required to act as a mezzanine and/or mortgage lender and finance the construction of the hotel property. To secure such financing arrangements, affiliates of The Bernstein Companies are required to provide certain security, which varies depending on the specific loan, by pledges of their equity interest in the office property, a fee mortgage on the hotel property, or both. As of March 31, 2019, no amounts related to the contingent aspect of any of the guarantees are recorded as liabilities in the Company’s consolidated financial statements. In connection with the sale and development of the Company's 6595 Springfield Center Drive development project, the Company has guaranteed the completion of the project and the payment of certain cost overruns in accordance with the development management agreement with the buyer. Although the project has been sold and the lease with the federal government tenant has been assigned to the buyer, pursuant to the terms of the Federal Government lease, the Federal Government tenant is not obligated to release the prior owner/landlord from such landlord’s obligations under the lease until completion of the construction. As a result, the entity which previously owned the land remains liable to the Federal Government tenant for the completion of the construction obligations under the lease. The buyer is obligated to fund the balance of the costs to meet such construction obligations, subject to the Company’s obligation to fund cost overruns (if any), as noted above. An affiliate of the buyer has provided a guaranty of the obligations of the buyer to fund such construction costs and the buyer has agreed to use commercially reasonable efforts to require the construction lender to provide certain remedies to the Company in the event the buyer does not fund such construction obligations. As of March 31, 2019, no amounts related to the contingent aspect of the guarantee are recorded as a liability in the Company’s consolidated financial statements. In 2009, the Company filed a general unsecured creditor’s claim against Lehman Brothers, Inc. for approximately $45.3 million related to its rejection of a lease at 399 Park Avenue in New York City. On January 10, 2014, the trustee for the liquidation of the business of Lehman Brothers allowed the Company’s claim in the amount of approximately $45.2 million. During 2014, 2015, 2016, 2017 and 2018, the Company received distributions of approximately $7.7 million, $8.1 million, $1.4 million, $0.4 million and $0.3 million, respectively. The Company has a remaining claim of approximately $27.2 million. The Company will continue to evaluate whether to attempt to sell the remaining claim or wait until the trustee distributes proceeds from the Lehman Brothers estate. Given the inherent uncertainties in bankruptcy proceedings, there can be no assurance as to the timing or amount of additional proceeds, if any, that the Company may ultimately realize on the remaining claim, whether by sale to a third party or by one or more distributions from the trustee. Accordingly, the Company has not recorded any estimated recoveries associated with this gain contingency within its Consolidated Financial Statements at March 31, 2019. Insurance The Company’s property insurance program per occurrence limits are $1.0 billion for its portfolio insurance program, including coverage for acts of terrorism other than nuclear, biological, chemical or radiological terrorism (“Terrorism Coverage”). The Company also carries $250 million of Terrorism Coverage for 601 Lexington Avenue, New York, New York (“601 Lexington Avenue”) in excess of the $1.0 billion of coverage in the Company’s property insurance program. Certain properties, including the General Motors Building located at 767 Fifth Avenue in New York, New York (“767 Fifth Avenue”), are currently insured in separate insurance programs. The property insurance program per occurrence limits for 767 Fifth Avenue are $1.625 billion, including Terrorism Coverage. The Company also currently carries nuclear, biological, chemical and radiological terrorism insurance coverage for acts of terrorism certified under the Federal Terrorism Risk Insurance Act (as amended, “TRIA”) (“NBCR Coverage”), which is provided by IXP as a direct insurer, for the properties in the Company's portfolio, including 767 Fifth Avenue, but excluding certain other properties owned in joint ventures with third parties or which the Company manages. The per occurrence limit for NBCR Coverage is $1.0 billion. Under TRIA, after the payment of the required deductible and coinsurance, the NBCR Coverage provided by IXP is backstopped by the Federal Government if the aggregate industry insured losses resulting from a certified act of terrorism exceed a “program trigger.” In 2019, the program trigger is $180 million and the coinsurance is 19%, however, both will increase in subsequent years pursuant to TRIA. If the Federal Government pays out for a loss under TRIA, it is mandatory that the Federal Government recoup the full amount of the loss from insurers offering TRIA coverage after the payment of the loss pursuant to a formula in TRIA. The Company may elect to terminate the NBCR Coverage if the Federal Government seeks recoupment for losses paid under TRIA, if TRIA is not extended after its expiration on December 31, 2020, if there is a change in its portfolio or for any other reason. The Company intends to continue to monitor the scope, nature and cost of available terrorism insurance. The Company also currently carries earthquake insurance on its properties located in areas known to be subject to earthquakes. In addition, this insurance is subject to a deductible in the amount of 3% of the value of the affected property. Specifically, the Company currently carries earthquake insurance which covers its San Francisco and Los Angeles regions with a $240 million per occurrence limit, and a $240 million annual aggregate limit, $20 million of which is provided by IXP, as a direct insurer. The amount of the Company’s earthquake insurance coverage may not be sufficient to cover losses from earthquakes. In addition, the amount of earthquake coverage could impact the Company’s ability to finance properties subject to earthquake risk. The Company may discontinue earthquake insurance or change the structure of its earthquake insurance program on some or all of its properties in the future if the premiums exceed the Company’s estimation of the value of the coverage. IXP, a captive insurance company which is a wholly-owned subsidiary of the Company, acts as a direct insurer with respect to a portion of the Company’s earthquake insurance coverage for its Greater San Francisco and Los Angeles properties and the Company’s NBCR Coverage. Insofar as the Company owns IXP, it is responsible for its liquidity and capital resources, and the accounts of IXP are part of the Company’s consolidated financial statements. In particular, if a loss occurs which is covered by the Company’s NBCR Coverage but is less than the applicable program trigger under TRIA, IXP would be responsible for the full amount of the loss without any backstop by the Federal Government. IXP would also be responsible for any recoupment charges by the Federal Government in the event losses are paid out and its insurance policy is maintained after the payout by the Federal Government. If the Company experiences a loss and IXP is required to pay under its insurance policy, the Company would ultimately record the loss to the extent of the required payment. Therefore, insurance coverage provided by IXP should not be considered as the equivalent of third-party insurance, but rather as a modified form of self-insurance. In addition, Boston Properties Limited Partnership has issued a guarantee to cover liabilities of IXP in the amount of $20.0 million. The mortgages on the Company’s properties typically contain requirements concerning the financial ratings of the insurers who provide policies covering the property. The Company provides the lenders on a regular basis with the identity of the insurance companies in the Company’s insurance programs. The ratings of some of the Company’s insurers are below the rating requirements in some of the Company’s loan agreements and the lenders for these loans could attempt to claim that an event of default has occurred under the loan. The Company believes it could obtain insurance with insurers which satisfy the rating requirements. Additionally, in the future, the Company’s ability to obtain debt financing secured by individual properties, or the terms of such financing, may be adversely affected if lenders generally insist on ratings for insurers or amounts of insurance which are difficult to obtain or which result in a commercially unreasonable premium. There can be no assurance that a deficiency in the financial ratings of one or more of the Company’s insurers will not have a material adverse effect on the Company. The Company continues to monitor the state of the insurance market in general, and the scope and costs of coverage for acts of terrorism and California earthquake risk in particular, but the Company cannot anticipate what coverage will be available on commercially reasonable terms in future policy years. There are other types of losses, such as from wars, for which the Company cannot obtain insurance at all or at a reasonable cost. With respect to such losses and losses from acts of terrorism, earthquakes or other catastrophic events, if the Company experiences a loss that is uninsured or that exceeds policy limits, the Company could lose the capital invested in the damaged properties, as well as the anticipated future revenues from those properties. Depending on the specific circumstances of each affected property, it is possible that the Company could be liable for mortgage indebtedness or other obligations related to the property. Any such loss could materially and adversely affect the Company’s business and financial condition and results of operations. |
Noncontrolling Interests |
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Noncontrolling Interests | 7. Noncontrolling Interests Noncontrolling interests relate to the interests in Boston Properties Limited Partnership not owned by Boston Properties, Inc. and interests in consolidated property partnerships not wholly-owned by the Company. As of March 31, 2019, the noncontrolling interests in Boston Properties Limited Partnership consisted of 16,844,947 OP Units, 1,187,919 LTIP Units (including 118,067 2012 OPP Units, 68,659 2013 MYLTIP Units, 23,100 2014 MYLTIP Units, 28,724 2015 MYLTIP Units and 98,706 2016 MYLTIP Units), 394,921 2017 MYLTIP Units, 336,195 2018 MYLTIP Units and 220,734 2019 MYLTIP Units held by parties other than Boston Properties, Inc. Noncontrolling Interest—Common Units During the three months ended March 31, 2019, 14,129 OP Units were presented by the holders for redemption (including 12,929 OP Units issued upon conversion of LTIP Units, 2012 OPP Units, 2013 MYLTIP Units and 2014 MYLTIP Units) and were redeemed by Boston Properties, Inc. in exchange for an equal number of shares of Common Stock. At March 31, 2019, Boston Properties Limited Partnership had outstanding 394,921 2017 MYLTIP Units, 336,195 2018 MYLTIP Units and 220,734 2019 MYLTIP Units. Prior to the applicable measurement date (February 6, 2020 for the 2017 MYLTIP Units, February 5, 2021 for the 2018 MYLTIP Units and February 4, 2022 for the 2019 MYLTIP Units), holders of MYLTIP Units will be entitled to receive per unit distributions equal to one-tenth (10%) of the regular quarterly distributions payable on an OP Unit, but will not be entitled to receive any special distributions. After the measurement date, the number of MYLTIP Units, both vested and unvested, that MYLTIP award recipients have earned, if any, based on the establishment of a performance pool, will be entitled to receive distributions in an amount per unit equal to distributions, both regular and special, payable on an OP Unit. On February 9, 2019, the measurement period for the Company’s 2016 MYLTIP awards ended and, based on Boston Properties, Inc.’s relative TSR performance, the final awards were determined to be 69.5% of target or an aggregate of approximately $13.6 million (after giving effect to voluntary employee separations). As a result, an aggregate of 364,980 2016 MYLTIP Units that had been previously granted were automatically forfeited. The following table presents Boston Properties Limited Partnership’s distributions on the OP Units and LTIP Units (including the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units and, after the February 9, 2019 measurement date, the 2016 MYLTIP Units) and its distributions on the 2016 MYLTIP Units (prior to the February 9, 2019 measurement date), 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units (after the February 5, 2019 issuance date) paid in 2019:
The following table presents Boston Properties Limited Partnership’s distributions on the OP Units and LTIP Units (including the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and, after the February 4, 2018 measurement date, the 2015 MYLTIP Units) and its distributions on the 2015 MYLTIP Units (prior to the February 4, 2018 measurement date), 2016 MYLTIP Units, 2017 MYLTIP Units and 2018 MYLTIP Units (after the February 6, 2018 issuance date) that occurred during the first quarter of 2018:
A holder of an OP Unit may present the OP Unit to Boston Properties Limited Partnership 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, Boston Properties Limited Partnership must redeem the OP Unit for cash equal to the then value of a share of common stock of Boston Properties, Inc. Boston Properties, Inc. may, in its sole discretion, elect to assume and satisfy the redemption obligation by paying either cash or issuing one share of Common Stock. The value of the OP Units not owned by Boston Properties, Inc. and LTIP Units (including the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units), assuming that all conditions had been met for the conversion thereof, had all of such units been redeemed at March 31, 2019 was approximately $2.4 billion based on the last reported price of a share of Common Stock on the New York Stock Exchange of $133.88 per share on March 29, 2019. Noncontrolling Interests—Property Partnerships The noncontrolling interests in property partnerships consist of the outside equity interests in ventures that are consolidated with the financial results of the Company because the Company exercises control over the entities that own the properties. The equity interests in these ventures that are not owned by the Company, totaling approximately $1.7 billion at March 31, 2019 and December 31, 2018, are included in Noncontrolling Interests—Property Partnerships in the accompanying Consolidated Balance Sheets. On May 12, 2016, the partners in the Company’s consolidated entity that owns Salesforce Tower located in San Francisco, California amended the venture agreement. Under the original venture agreement, if the Company elects to fund the construction of Salesforce Tower without a construction loan (or a construction loan of less than 50% of project costs) and the venture has commenced vertical construction of the project, then the partner’s capital funding obligation shall be limited, in which event the Company shall fund up to 2.5% of the total project costs (i.e., 50% of the partner’s 5% interest in the venture) in the form of a loan to the partner. This loan would bear interest at the then prevailing market interest rates for construction loans. Under the amended agreement, the partners have agreed to structure this funding by the Company as preferred equity rather than a loan. The preferred equity contributed by the Company earns a preferred return equal to LIBOR plus 3.00% per annum and is payable to the Company out of any distributions to which the partner would otherwise be entitled until such preferred equity and preferred return have been repaid to the Company. As of March 31, 2019, the Company had contributed an aggregate of approximately $22.6 million of preferred equity to the venture. Also, under the joint venture agreement, (a) from and after the stabilization date, the partner has the right to cause the Company to purchase all (but not less than all) of the partner’s interest and (b) from and after the third anniversary of the stabilization date, the Company has the right to acquire all (but not less than all) of the partner’s interest, in each case at an agreed upon purchase price or appraised value. In addition, if certain threshold returns are achieved the partner will be entitled to receive an additional promoted interest with respect to cash flow distributions. The term stabilization date is defined in the agreement to generally mean the first date after completion upon which Salesforce Tower is (1) at least 90% leased and (2) 50% occupied by tenants that are paying rent. On January 18, 2019, the Company and its partner amended the venture agreement. Per the amendment, the partner exercised its right to cause the Company to purchase on April 1, 2019 its 5% ownership interest and promoted profits interest in the venture for cash totaling approximately $210.9 million, which amount shall be reduced by approximately $24.1 million, consisting of the repayment of the Company's preferred equity and preferred return as provided for in the venture agreement. As part of the original agreement, the partner was required to contribute 5% of the equity and was entitled to receive an additional promoted payment based on the success of the property (See Note 12). |
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Stockholders' Equity / Partners' Capital | 8. Stockholders’ Equity / Partners’ Capital As of March 31, 2019, Boston Properties, Inc. had 154,515,486 shares of Common Stock outstanding. As of March 31, 2019, Boston Properties, Inc. owned 1,725,484 general partnership units and 152,790,002 limited partnership units of Boston Properties Limited Partnership. On June 2, 2017, Boston Properties, Inc. renewed its “at the market” (“ATM”) stock offering program through which it may sell from time to time up to an aggregate of $600.0 million of its common stock through sales agents over a three-year period. This program replaced the Company’s prior $600.0 million ATM stock offering program that was scheduled to expire on June 3, 2017. The Company intends to use the net proceeds from any offering for general business purposes, which may include investment opportunities and debt reduction. No shares of common stock have been issued under this ATM stock offering program. During the three months ended March 31, 2019, Boston Properties, Inc. issued 14,129 shares of Common Stock in connection with the redemption of an equal number of redeemable OP Units from limited partners. The following table presents Boston Properties, Inc.’s dividends per share and Boston Properties Limited Partnership’s distributions per OP Unit and LTIP Unit paid in 2019 and occurred during the first quarter of 2018:
Preferred Stock As of March 31, 2019, Boston Properties, Inc. had 80,000 shares (8,000,000 depositary shares each representing 1/100th of a share) outstanding of its 5.25% Series B Cumulative Redeemable Preferred Stock with a liquidation preference of $2,500.00 per share ($25.00 per depositary share). Boston Properties, Inc. pays cumulative cash dividends on the Series B Preferred Stock at a rate of 5.25% per annum of the $2,500.00 liquidation preference per share. Boston Properties, Inc. did not have the right to redeem the Series B Preferred Stock prior to March 27, 2018, except in certain circumstances relating to the preservation of Boston Properties, Inc.’s REIT status. On and after March 27, 2018, Boston Properties, Inc., at its option, may redeem the Series B Preferred Stock for a cash redemption price of $2,500.00 per share ($25.00 per depositary share), plus all accrued and unpaid dividends. The Series B Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into any other security of Boston Properties, Inc. or its affiliates. The following table presents Boston Properties Inc.’s dividends per share on its outstanding Series B Preferred Stock paid during 2019 and occurred during the first quarter of 2018:
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Earnings Per Share / Common Unit |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share / Common Unit | 9. Earnings Per Share / Common Unit Boston Properties, Inc. The following table provides a reconciliation of both the net income attributable to Boston Properties, Inc. common shareholders and the number of common shares used in the computation of basic earnings per share (“EPS”), which is calculated by dividing net income attributable to Boston Properties, Inc. common shareholders by the weighted-average number of common shares outstanding during the period. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are also participating securities. As such, unvested restricted common stock of Boston Properties, Inc. and Boston Properties Limited Partnership's LTIP Units, 2012 OPP Units and MYLTIP Units are considered participating securities. Participating securities are included in the computation of basic EPS of Boston Properties, Inc. using the two-class method. Participating securities are included in the computation of diluted EPS of Boston Properties, Inc. using the if-converted method if the impact is dilutive. Because the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units required, and the 2017-2019 MYLTIP 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, Boston Properties, Inc. excludes such units from the diluted EPS calculation. Other potentially dilutive common shares, including stock options, restricted stock and other securities of Boston Properties Limited Partnership that are exchangeable for Boston Properties, Inc.’s Common Stock, and the related impact on earnings, are considered when calculating diluted EPS.
Boston Properties Limited Partnership The following table provides a reconciliation of both the net income attributable to Boston Properties Limited Partnership common unitholders and the number of common units used in the computation of basic earnings per common unit, which is calculated by dividing net income attributable to Boston Properties Limited Partnership common unitholders by the weighted-average number of common units outstanding during the period. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are also participating securities. As such, unvested restricted common stock of Boston Properties, Inc. and Boston Properties Limited Partnership’s LTIP Units, 2012 OPP Units and MYLTIP Units are considered participating securities. Participating securities are included in the computation of basic earnings per common unit using the two-class method. Participating securities are included in the computation of diluted earnings per common unit using the if-converted method if the impact is dilutive. Because the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units and 2016 MYLTIP Units required, and the 2017-2019 MYLTIP 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, Boston Properties Limited Partnership excludes such units from the diluted earnings per common unit calculation. Other potentially dilutive common units and the related impact on earnings are considered when calculating diluted earnings per common unit. Included in the number of units (the denominator) below are approximately 17,606,000 and 17,482,000 redeemable common units for the three months ended March 31, 2019 and 2018, respectively.
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Stock Option and Incentive Plan |
3 Months Ended |
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Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option and Incentive Plan | 10. Stock Option and Incentive Plan On February 5, 2019, Boston Properties, Inc.’s Compensation Committee approved the 2019 MYLTIP awards under Boston Properties, Inc.’s 2012 Stock Option and Incentive Plan (the "2012 Plan") to certain officers and employees of Boston Properties, Inc. The 2019 MYLTIP awards utilize Boston Properties, Inc.’s TSR over a three-year measurement period, on an annualized, compounded basis, as the performance metric. Earned awards will be based on Boston Properties, Inc.’s TSR relative to the Nareit Office Index adjusted to include Vornado Realty Trust. Earned awards will range from zero to a maximum of 220,734 LTIP Units depending on Boston Properties, Inc.’s TSR relative to the Nareit Office Index adjusted to include Vornado Realty Trust, with a target of approximately 110,367 LTIP Units and linear interpolation between zero and maximum. Earned awards (if any) will vest 50% on February 4, 2022 and 50% on February 4, 2023, based on continued employment. Vesting will be accelerated in the event of a change in control, termination of employment by Boston Properties, Inc. without cause, or termination of employment by the award recipient for good reason, death, disability or retirement. If there is a change of control prior to February 4, 2022, earned awards will be calculated based on TSR performance up to the date of the change of control. The 2019 MYLTIP awards are in the form of LTIP Units issued on the grant date which (i) are subject to forfeiture to the extent awards are not earned and (ii) prior to the performance measurement date are only entitled to one-tenth (10%) of the regular quarterly distributions payable on common partnership units. Under ASC 718 "Compensation - Stock Compensation", the 2019 MYLTIP awards have an aggregate value of approximately $13.5 million, which amount will generally be amortized into earnings over the four-year plan period under the graded vesting method. On February 9, 2019, the measurement period for the Company’s 2016 MYLTIP awards ended and, based on Boston Properties, Inc.’s relative TSR performance, the final awards were determined to be 69.5% of target or an aggregate of approximately $13.6 million (after giving effect to voluntary employee separations). As a result, an aggregate of 364,980 2016 MYLTIP Units that had been previously granted were automatically forfeited. During the three months ended March 31, 2019, Boston Properties, Inc. issued 23,083 shares of restricted common stock and Boston Properties Limited Partnership issued 172,166 LTIP Units and 220,734 2019 MYLTIP Units to employees under the 2012 Plan. Employees paid $0.01 per share of restricted common stock and $0.25 per LTIP Unit and 2019 MYLTIP Unit. When issued, LTIP Units are not economically equivalent in value to a share of Common Stock, but over time can increase in value to one-for-one parity with Common Stock if there is sufficient appreciation in the value of the Company’s assets. The aggregate value of the LTIP Units is included in noncontrolling interests in the Consolidated Balance Sheets. A substantial majority of the grants of restricted common stock and LTIP Units to employees vest in four equal annual installments. Restricted common stock is measured at fair value on the date of grant based on the number of shares granted 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. The shares of restricted common stock granted during the three months ended March 31, 2019 were valued at approximately $3.0 million ($131.23 per share weighted-average). The LTIP Units granted were valued at approximately $20.9 million (approximately $121.41 per unit weighted-average fair value) using a Monte Carlo simulation method model. The per unit fair values of the LTIP Units granted were estimated on the dates of grant and for a substantial majority of such units were valued using the following assumptions: an expected life of 5.7 years, a risk-free interest rate of 2.68% and an expected price volatility of 27.0%. Because the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units, 2016 MYLTIP Units, 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units are subject to both a service condition and a market condition, the Company recognizes the related compensation expense under the graded vesting attribution method. Under the graded vesting attribution method, each portion of the award that vests at a different date is accounted for as a separate award and recognized over the period appropriate to that portion so that the compensation cost for each portion should be recognized in full by the time that portion vests. The Company recognizes forfeitures as they occur on its awards of stock-based compensation. Dividends paid on both vested and unvested shares of restricted stock are charged directly to Dividends in Excess of Earnings in Boston Properties, Inc.’s Consolidated Balance Sheets and Partners’ Capital in Boston Properties Limited Partnership’s Consolidated Balance Sheets. Aggregate stock-based compensation expense associated with restricted stock, non-qualified stock options, LTIP Units, 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units, 2015 MYLTIP Units, 2016 MYLTIP Units, 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units was approximately $14.8 million and $14.2 million for the three months ended March 31, 2019 and 2018, respectively. At March 31, 2019, there was (1) an aggregate of approximately $38.4 million of unrecognized compensation expense related to unvested restricted stock, LTIP Units and 2016 MYLTIP Units and (2) an aggregate of approximately $22.6 million of unrecognized compensation expense related to unvested 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units that is expected to be recognized over a weighted-average period of approximately 2.9 years. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | 11. 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, 2019 and 2018. Boston Properties, Inc.
Boston Properties Limited Partnership
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, 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 (losses) from investments in securities, interest and other income, (losses) 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 the Company's 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 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’ percentage ownership interests and, in some cases, after priority allocations and their share of fees due to the Company). 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, impairment loss, 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, (losses) gains 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. The Company has modified the presentation of its geographic area classification for all periods presented to include the Los Angeles geographic area to align with its method of internal reporting. The Company has expanded its presence in the Los Angeles geographic area with its equity method investment in Santa Monica Business Park located in Santa Monica, California. The Company now has equity interests in a portfolio of 27 office and retail properties in the Los Angeles geographic area aggregating approximately 2.3 million net rentable square feet, all of which are owned through investments in unconsolidated joint ventures. The Company is now presenting the Los Angeles geographic area as a reportable segment to align with its method of internal reporting given the increased significance as a result of commencing a full reporting period of ownership of the Santa Monica Business Park portfolio. The inclusion of the Los Angeles geographic area has also resulted in a change in the reported measure of segment profit or loss from NOI to the Company's share of NOI. This change has been reflected in all periods presented and the impact of the change can been seen within the tables below. The Company has not presented rental revenue and rental expenses for properties owned through investments in unconsolidated joint ventures, including those in the Los Angeles geographic area, as the Company accounts for these properties using the equity method of accounting. Information by geographic area (dollars in thousands): For the three months ended March 31, 2019:
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For the three months ended March 31, 2018:
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Subsequent Events |
3 Months Ended |
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Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 12. Subsequent Events On April 1, 2019, the Company completed the acquisition of its partner's 5% ownership interest and promoted profits interest in the consolidated entity that owns Salesforce Tower located in San Francisco, California for cash totaling approximately $210.9 million, which amount was reduced by approximately $24.1 million, consisting of the repayment of the Company's preferred equity and preferred return in the venture. The partner was entitled to receive an additional promoted payment based on the success of the property. Salesforce Tower is an approximately 1,421,000 net rentable square foot Class A office property (See Note 7). On April 18, 2019, the Company entered into an agreement to sell its One Tower Center property located in East Brunswick, New Jersey for a gross sale price of approximately $38.0 million. One Tower Center is an approximately 410,000 net rentable square foot Class A office property. The closing is subject to customary closing conditions and termination rights for transactions of this type. There can be no assurance that the sale will be completed on the terms currently contemplated or at all (See Note 3). On April 26, 2019, a joint venture in which the Company has a 50% interest obtained construction financing with a total commitment of $255.0 million collateralized by its 7750 Wisconsin Avenue development project located in Bethesda, Maryland. The construction financing bears interest at a variable rate equal to LIBOR plus 1.25% per annum and matures on April 26, 2023, with two, one-year extension options, subject to certain conditions. There have been no amounts drawn under the loan to date. 7750 Wisconsin Avenue is a 734,000 net rentable square foot build-to-suit Class A office project and below-grade parking garage. |
Basis Of Presentation And Summary Of Significant Accounting Policies New Accounting Pronouncements (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements New Accounting Pronouncements Adopted Leases On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, “Leases (Topic 842)” (“ASU 2016-02” or "Topic 842"). For information pertaining to the Company's adoption and disclosures with respect to leases, see Note 4. |
Basis Of Presentation And Summary Of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value Of Indebtedness And Corresponding Estimate Of Fair Value | March 31, 2019 and December 31, 2018 (in thousands):
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Real Estate (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Boston Properties, Inc. Real estate consisted of the following at March 31, 2019 and December 31, 2018 (in thousands):
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Finance Lease, Liability, Maturity [Table Text Block] | The following table provides a maturity analysis for the Company's lease liabilities related to its operating and finance leases as of March 31, 2019 (in thousands):
The Company recorded an adjustment to the opening balance of retained earnings related to initial direct costs that, as of January 1, 2019, had not started to amortize and are no longer allowed to be capitalized in accordance with ASU 2016-02, totaling approximately to Dividends in Excess of Earnings of Boston Properties, Inc. and Partners' Capital of Boston Properties Limited Partnership, approximately $0.4 million to Noncontrolling interests - Common Units of Boston Properties, Inc. and Noncontrolling Interest - Redeemable Partnership Units of Boston Properties Limited Partnership and $70,000 to Noncontrolling Interests - Property Partnerships of Boston Properties, Inc. and Noncontrolling Interests in Property Partnerships of Boston Properties Limited Partnership on the corresponding Consolidated Balance Sheets. $3.9 million to Dividends in Excess of Earnings of Boston Properties, Inc. and Partners' Capital of Boston Properties Limited Partnership, approximately $0.4 million
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Boston Properties Limited Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Boston Properties Limited Partnership Real estate consisted of the following at March 31, 2019 and December 31, 2018 (in thousands):
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Platform 16 [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Lease, Liability, Maturity [Table Text Block] | As of January 24, 2019, the lease payments from the finance lease are as follows (in thousands):
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Leases (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finance Lease, Liability, Maturity [Table Text Block] | The following table provides a maturity analysis for the Company's lease liabilities related to its operating and finance leases as of March 31, 2019 (in thousands):
The Company recorded an adjustment to the opening balance of retained earnings related to initial direct costs that, as of January 1, 2019, had not started to amortize and are no longer allowed to be capitalized in accordance with ASU 2016-02, totaling approximately to Dividends in Excess of Earnings of Boston Properties, Inc. and Partners' Capital of Boston Properties Limited Partnership, approximately $0.4 million to Noncontrolling interests - Common Units of Boston Properties, Inc. and Noncontrolling Interest - Redeemable Partnership Units of Boston Properties Limited Partnership and $70,000 to Noncontrolling Interests - Property Partnerships of Boston Properties, Inc. and Noncontrolling Interests in Property Partnerships of Boston Properties Limited Partnership on the corresponding Consolidated Balance Sheets. $3.9 million to Dividends in Excess of Earnings of Boston Properties, Inc. and Partners' Capital of Boston Properties Limited Partnership, approximately $0.4 million
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Lease, Cost [Table Text Block] | The following tables provide quantitative information for the Company's operating and finance leases as of March 31, 2019 (dollars in thousands):
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Operating Lease, Lease Income [Table Text Block] | The following table summarizes the components of lease revenue recognized during the three months ended March 31, 2019 included within the Company's Consolidated Statements of Operations (in thousands):
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Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The following table provides a maturity analysis for the Company's future contractual minimum lease payments to be made by the Company as of December 31, 2018, under non-cancelable ground leases which expire on various dates through 2114:
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Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | The following table provides a maturity analysis for the Company's future minimum lease payments, as of December 31, 2018, related to the four capital leases, through 2036:
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Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | The future contractual minimum lease payments to be received (excluding operating expense reimbursements) by the Company as of December 31, 2018, under non-cancelable operating leases which expire on various dates through 2049:
The future contractual lease payments to be received (excluding operating expense reimbursements) by the Company as of March 31, 2019, under non-cancelable operating leases which expire on various dates through 2049:
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Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table provides a maturity analysis for the Company's lease liabilities related to its operating and finance leases as of March 31, 2019 (in thousands):
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Investments in Unconsolidated Joint Ventures (Tables) |
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Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments In Unconsolidated Joint Ventures | The investments in unconsolidated joint ventures consist of the following at March 31, 2019 and December 31, 2018:
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Schedule Of Balance Sheets Of The Unconsolidated Joint Ventures [Text Block] | The combined summarized balance sheets of the Company’s unconsolidated joint ventures are as follows:
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Statements Of Operations Of The Joint Ventures | . The combined summarized statements of operations of the Company’s unconsolidated joint ventures are as follows:
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Noncontrolling Interests (Tables) |
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Noncontrolling Interest [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Declared to OP, LTIP, OPP and MYLTIP Units [Table Text Block] | The following table presents Boston Properties, Inc.’s dividends per share and Boston Properties Limited Partnership’s distributions per OP Unit and LTIP Unit paid in 2019 and occurred during the first quarter of 2018:
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Noncontrolling Interests [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions Declared to OP, LTIP, OPP and MYLTIP Units [Table Text Block] | The following table presents Boston Properties Limited Partnership’s distributions on the OP Units and LTIP Units (including the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and 2015 MYLTIP Units and, after the February 9, 2019 measurement date, the 2016 MYLTIP Units) and its distributions on the 2016 MYLTIP Units (prior to the February 9, 2019 measurement date), 2017 MYLTIP Units, 2018 MYLTIP Units and 2019 MYLTIP Units (after the February 5, 2019 issuance date) paid in 2019:
The following table presents Boston Properties Limited Partnership’s distributions on the OP Units and LTIP Units (including the 2012 OPP Units, 2013 MYLTIP Units, 2014 MYLTIP Units and, after the February 4, 2018 measurement date, the 2015 MYLTIP Units) and its distributions on the 2015 MYLTIP Units (prior to the February 4, 2018 measurement date), 2016 MYLTIP Units, 2017 MYLTIP Units and 2018 MYLTIP Units (after the February 6, 2018 issuance date) that occurred during the first quarter of 2018:
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Stockholders' Equity / Partners' Capital Tables (Tables) |
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dividends Declared [Table Text Block] | The following table presents Boston Properties, Inc.’s dividends per share and Boston Properties Limited Partnership’s distributions per OP Unit and LTIP Unit paid in 2019 and occurred during the first quarter of 2018:
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Series B Cumulative Redeemable Preferred Stock [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | The following table presents Boston Properties Inc.’s dividends per share on its outstanding Series B Preferred Stock paid during 2019 and occurred during the first quarter of 2018:
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Earnings Per Share / Common Unit (Tables) |
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation Of Basic And Diluted Earnings Per Share |
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Boston Properties Limited Partnership | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation Of Basic And Diluted Earnings Per Share |
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Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 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 months ended March 31, 2019 and 2018. Boston Properties, Inc.
Boston Properties Limited Partnership
|
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Schedule Of Segment Information By Geographic Area And Property Type | Information by geographic area (dollars in thousands): For the three months ended March 31, 2019:
_______________
For the three months ended March 31, 2018:
_______________
|
Organization (Details) ft² in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019
ft²
Real_Estate_Properties
series
Buildings
yr
shares
|
Dec. 31, 2018
shares
|
|
Real Estate Properties [Line Items] | ||
General and limited partnership interest in the operating partnership (percent) | 89.50% | 89.70% |
Restriction on redemption of OP units from date of issuance (years) | yr | 1 | |
One OP unit is equivalent to one share of Common Stock (in shares) | shares | 1 | |
OP unit conversion rate (in shares) | shares | 1 | |
Number Of Series Of Preferred Units Outstanding | series | 1 | |
Commercial Real Estate Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 196 | |
Net Rentable Area (in sf) | ft² | 51.4 | |
Total Properties Under Construction [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 11 | |
Net Rentable Area (in sf) | ft² | 5.3 | |
Total Office Properties [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 177 | |
Office Properties Under Construction [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 9 | |
Residential Properties [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 6 | |
Residential Properties Under Construction [Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 2 | |
Retail Properties [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | Buildings | 12 | |
Hotel Property [ Member] | ||
Real Estate Properties [Line Items] | ||
Number of real estate properties | 1 | |
Series B Cumulative Redeemable Preferred Stock [Member] | ||
Real Estate Properties [Line Items] | ||
Ratio of depository shares to shares of Series B Preferred Stock | 0.01 | |
Series B, Shares Outstanding (in shares) | shares | 80,000 | 80,000 |
Series B, Dividend Rate, Percentage | 5.25% | |
Depository shares of Series B Cumulative Redeemable Preferred [Member] | ||
Real Estate Properties [Line Items] | ||
Series B, Shares Outstanding (in shares) | shares | 8,000,000 | |
Series B Preferred Units [Member] | ||
Real Estate Properties [Line Items] | ||
Series B, Shares Outstanding (in shares) | shares | 80,000 |
Basis Of Presentation And Summary Of Significant Accounting Policies (Carrying Value Of note receivable, Indebtedness And Corresponding Estimate Of Fair Value) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Summary Of Significant Accounting Policies [Line Items] | ||
Related party note receivable | $ 80,000 | $ 80,000 |
Note receivable | 19,593 | 19,468 |
Mortgage notes payable, net | 2,959,908 | 2,964,572 |
Unsecured senior notes, net | 7,547,043 | 7,544,697 |
Unsecured line of credit | 0 | 0 |
Unsecured term loan, net | 498,607 | 498,488 |
Carrying Amount [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Related party note receivable | 80,000 | 80,000 |
Note receivable | 19,593 | 19,468 |
Note and Related Party Receivables | 99,593 | 99,468 |
Mortgage notes payable, net | 2,959,908 | 2,964,572 |
Unsecured senior notes, net | 7,547,043 | 7,544,697 |
Unsecured line of credit | 0 | 0 |
Unsecured term loan, net | 498,607 | 498,488 |
Total | 11,005,558 | 11,007,757 |
Estimated Fair Value [Member] | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Related party note receivable | 80,060 | 80,000 |
Note receivable | 17,723 | 19,468 |
Note and Related Party Receivables | 97,783 | 99,468 |
Mortgage notes payable, net | 2,948,057 | 2,903,925 |
Unsecured senior notes, net | 7,584,456 | 7,469,338 |
Unsecured line of credit | 0 | 0 |
Unsecured term loan, net | 500,728 | 500,783 |
Total | $ 11,033,241 | $ 10,874,046 |
Real Estate Properties Table (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|---|
Real estate | ||||||
Land | $ 5,061,532 | $ 5,072,568 | ||||
Right of use assets - finance leases | 187,292 | 0 | ||||
Right of use assets - operating leases | 151,166 | $ 151,800 | 0 | |||
Land held for future development | [1] | 258,221 | 200,498 | |||
Buildings and improvements | 13,286,605 | 13,356,751 | ||||
Tenant improvements | 2,444,358 | 2,396,932 | ||||
Furniture, fixtures and equipment | 43,080 | 44,351 | ||||
Construction in progress | 647,469 | 578,796 | ||||
Total | 22,079,723 | 21,649,896 | ||||
Accumulated depreciation | (4,962,959) | (4,897,777) | ||||
Total real estate | 17,116,764 | 16,752,119 | ||||
Boston Properties Limited Partnership | ||||||
Real estate | ||||||
Land | 4,961,028 | 4,971,475 | ||||
Right of use assets - finance leases | 187,292 | 0 | ||||
Right of use assets - operating leases | 151,166 | 0 | ||||
Land held for future development | [1] | 258,221 | 200,498 | |||
Buildings and improvements | 12,991,108 | 13,059,488 | ||||
Tenant improvements | 2,444,358 | 2,396,932 | ||||
Furniture, fixtures and equipment | 43,080 | 44,351 | ||||
Construction in progress | 647,469 | 578,796 | ||||
Total | 21,683,722 | 21,251,540 | ||||
Accumulated depreciation | (4,864,334) | (4,800,475) | ||||
Total real estate | $ 16,819,388 | $ 16,451,065 | ||||
|
Real Estate Narrative (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Feb. 14, 2019
ft²
yr
|
Jan. 24, 2019
USD ($)
ft²
a
|
Jan. 23, 2019
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Apr. 18, 2019
USD ($)
ft²
|
Jan. 10, 2019
USD ($)
ft²
|
|
Real Estate [Line Items] | ||||||||
Right of use assets - finance leases | $ 187,292 | $ 0 | ||||||
Proceeds from sales of real estate | 20,019 | $ 116,120 | ||||||
Gains (loss) on sales of real estate | 905 | (96,397) | ||||||
Boston Properties Limited Partnership | ||||||||
Real Estate [Line Items] | ||||||||
Right of use assets - finance leases | 187,292 | 0 | ||||||
Proceeds from sales of real estate | 20,019 | 116,120 | ||||||
Gains (loss) on sales of real estate | 905 | (98,907) | ||||||
325 Main Street [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 115,000 | |||||||
Platform 16 [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 1,100,000 | |||||||
Finance Lease fixed purchase price | $ 134,800 | |||||||
Right of use assets - finance leases | $ 122,600 | |||||||
Lessee, Finance Lease, Term of Contract | 65 years | |||||||
Area of Land | a | 5.6 | |||||||
Carnegie Center [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 1,700,000 | |||||||
Aggregate purchase price | $ 51,500 | |||||||
Deferred purchase price | $ 8,600 | |||||||
One Tower Center [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Impairment loss | 24,000 | |||||||
One Tower Center [Member] | Boston Properties Limited Partnership | ||||||||
Real Estate [Line Items] | ||||||||
Impairment loss | 22,300 | |||||||
2600 Tower Oaks Boulevard [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 179,000 | |||||||
Gross Sale Price | $ 22,700 | |||||||
Proceeds from sales of real estate | $ 21,400 | |||||||
Net income (loss) | $ (200) | $ (200) | ||||||
Gains (loss) on sales of real estate | $ 600 | |||||||
Impairment loss | 3,100 | |||||||
2600 Tower Oaks Boulevard [Member] | Boston Properties Limited Partnership | ||||||||
Real Estate [Line Items] | ||||||||
Impairment loss | $ 1,500 | |||||||
Future Office Building [Member] | 325 Main Street [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 400,000 | |||||||
Square Footage Of Signed Lease | ft² | 362,000 | |||||||
Term of Lease Signed (in years) | yr | 15 | |||||||
Future Retail Building [Member] | 325 Main Street [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 38,000 | |||||||
Subsequent Event [Member] | One Tower Center [Member] | ||||||||
Real Estate [Line Items] | ||||||||
Net Rentable Area (in sf) | ft² | 410,000 | |||||||
Gross Sale Price | $ 38,000 |
Real Estate Finance Lease Liability, Maturity - Platform 16 (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 24, 2019 |
Dec. 31, 2018 |
||
---|---|---|---|---|---|
Real estate | |||||
2019 | $ 4,401 | ||||
2020 | [1] | 122,070 | |||
Total expected minimum lease payments | 203,907 | ||||
Interest portion | (30,784) | ||||
Present value of expected net lease payments | $ 173,123 | $ 0 | |||
Platform 16 [Member] | |||||
Real estate | |||||
2019 | $ 17,918 | ||||
2020 | 109,460 | ||||
Total expected minimum lease payments | 127,378 | ||||
Interest portion | (4,815) | ||||
Present value of expected net lease payments | $ 122,563 | ||||
|
Leases Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|
Cumulative effect of a change in accounting principle | $ 4,379 | $ (5,496) | ||
Right of use assets - operating leases | 151,166 | $ 151,800 | $ 0 | |
Lease liabilities - operating leases | 199,653 | $ 199,300 | 0 | |
Boston Properties Limited Partnership | ||||
Right of use assets - operating leases | 151,166 | 0 | ||
Lease liabilities - operating leases | 199,653 | $ 0 | ||
Dividends In Excess Of Earnings [Member] | ||||
Cumulative effect of a change in accounting principle | 3,864 | (4,933) | ||
Dividends In Excess Of Earnings [Member] | Boston Properties Limited Partnership | ||||
Cumulative effect of a change in accounting principle | 3,900 | |||
Noncontrolling Interests - Common units [Member] | ||||
Cumulative effect of a change in accounting principle | 445 | $ (563) | ||
Noncontrolling Interests - Common units [Member] | Boston Properties Limited Partnership | ||||
Cumulative effect of a change in accounting principle | 400 | |||
Noncontrolling interest - property partnerships [Member] | ||||
Cumulative effect of a change in accounting principle | 70 | |||
Noncontrolling interest - property partnerships [Member] | Boston Properties Limited Partnership | ||||
Cumulative effect of a change in accounting principle | $ (70) |
Leases Lessee, Lease Costs and Other Information (Details) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
| ||||||
Leases [Abstract] | ||||||
Operating lease costs | $ 3,677 | |||||
Finance Lease, Amortization of right of use asset | 16 | [1] | ||||
Finance Lease, Interest on lease liabilities | $ 12 | [2] | ||||
Operating Lease, Weighted Average Remaining Lease Term | 52 years | |||||
Finance Lease, Weighted Average Remaining Lease Term | 5 years | |||||
Operating Lease, Weighted Average Discount Rate, Percent | 5.70% | |||||
Finance Lease, Weighted Average Discount Rate, Percent | 4.10% | |||||
|
Leases Future Minimum Lease Payments for Ground Leases (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 11,425 |
2020 | 18,425 |
2021 | 25,310 |
2022 | 8,894 |
2023 | 9,084 |
Thereafter | $ 567,232 |
Leases Future Minimum Lease Payments, Capital Leases (Details) $ in Thousands |
Dec. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 1,441 |
2020 | 12,682 |
2021 | 2,123 |
2022 | 1,253 |
2023 | 944 |
Thereafter | 73,241 |
Total expected minimum lease payments | 91,684 |
Interest portion | (27,497) |
Present value of expected net minimum lease payments | $ 64,187 |
Leases Lease Liability Maturity Schedule (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
|||
---|---|---|---|---|---|---|
Operating Leases | ||||||
April 1, 2019 - December 31, 2019 | $ 7,317 | |||||
2020 | 17,488 | |||||
2021 | 25,403 | |||||
2022 | 11,376 | |||||
2023 | 9,084 | |||||
Thereafter | 567,232 | |||||
Total lease payments | 637,900 | |||||
Less: interest portion | (438,247) | |||||
Present value of lease payments | 199,653 | $ 199,300 | $ 0 | |||
Finance Leases | ||||||
April 1, 2019 - december 31, 2019 | 4,401 | |||||
2020 | [1] | 122,070 | ||||
2021 | 2,130 | |||||
2022 | 1,121 | |||||
2023 | 944 | |||||
Thereafter | [1] | 73,241 | ||||
Total lease payments | 203,907 | |||||
Interest portion | (30,784) | |||||
Present value of expected net lease payments | 173,123 | $ 0 | ||||
Lessee, Finance Lease, Option to Extend, Reasonably Certain 2024 | 38,700 | |||||
Lessee, Finance Lease, Option to Extend, Reasonably Certain 2020 | $ 119,800 | |||||
|
Leases Lessor, Lease Income Table (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Leases [Abstract] | ||
Fixed Contractual Payments | $ 553,986,000 | |
Variable lease payments | 125,265,000 | |
Lease | $ 679,251,000 | $ 0 |
Leases Lessor , Future Minimum Rents (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Leases [Abstract] | ||
April 1, 2019 - December 31, 2019 | $ 1,573,871 | |
2019 | $ 2,088,171 | |
2020 | 2,147,464 | 2,106,963 |
2021 | 2,076,969 | 2,015,031 |
2022 | 1,910,362 | 1,838,699 |
2023 | 1,811,936 | 1,736,636 |
Thereafter | $ 12,821,229 | $ 12,295,464 |
Investments in Unconsolidated Joint Ventures (Investments in Unconsolidated Joint Ventures) (Details) $ in Thousands |
3 Months Ended | |||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
ft²
Land_Parcels
Buildings
payments
|
Dec. 31, 2018
USD ($)
|
|||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Carrying Value of investment | $ (369,575) | $ (503,726) | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | $ 976,580 | 956,309 | ||||||||||||||||||
Square 407 Limited Partnership [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Market Square North | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying Value of investment | [1] | $ (5,948) | (6,424) | |||||||||||||||||
The Metropolitan Square Associates LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Metropolitan Square | |||||||||||||||||||
Ownership Percentage | 20.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 3,146 | 2,644 | |||||||||||||||||
BP/CRF 901 New York Avenue LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 901 New York Avenue | |||||||||||||||||||
Ownership Percentage | [2] | 25.00% | ||||||||||||||||||
Carrying Value of investment | [1] | $ (13,215) | (13,640) | |||||||||||||||||
WP Project Developer LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Wisconsin Place Land and Infrastructure | |||||||||||||||||||
Ownership Percentage | [3] | 33.30% | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 37,821 | 38,214 | |||||||||||||||||
Annapolis Junction NFM, LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Annapolis Junction | |||||||||||||||||||
Ownership Percentage | [4] | 50.00% | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 25,284 | 25,268 | |||||||||||||||||
Number of real estate properties | Buildings | 3 | |||||||||||||||||||
Parcels of undeveloped land | Land_Parcels | 2 | |||||||||||||||||||
540 Madison Venture LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 540 Madison Avenue | |||||||||||||||||||
Ownership Percentage | 60.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 66,452 | 66,391 | |||||||||||||||||
500 North Capitol Venture LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 500 North Capitol Street, NW | |||||||||||||||||||
Ownership Percentage | 30.00% | |||||||||||||||||||
Carrying Value of investment | [1] | $ (4,781) | (5,026) | |||||||||||||||||
501 K Street LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 1001 6th Street | |||||||||||||||||||
Ownership Percentage | [5] | 50.00% | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 42,500 | 42,557 | |||||||||||||||||
Potential additonal payments to joint venture partner | payments | 2 | |||||||||||||||||||
Minimum square footage to make a potential additional payment to joint venture partner (in sqft) | ft² | 520,000 | |||||||||||||||||||
Podium Developer LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | The Hub on Causeway - Podium | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 69,849 | 69,302 | |||||||||||||||||
Residential Tower Developer LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | The Hub on Causeway - Residential | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 47,795 | 47,505 | |||||||||||||||||
Hotel Tower Developer LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | The Hub on Causeway - Hotel Air Rights | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 3,343 | 3,022 | |||||||||||||||||
Office Tower Developer LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 100 Causeway Street | |||||||||||||||||||
Ownership Percentage | [6] | 50.00% | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 46,881 | 23,804 | |||||||||||||||||
1265 Main Office JV LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 1265 Main Street | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 4,030 | 3,918 | |||||||||||||||||
BNY Tower Holdings LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Dock 72 | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 83,291 | 82,520 | |||||||||||||||||
CA-Colorado Center Limited Partnership [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Colorado Center | |||||||||||||||||||
Ownership Percentage | 50.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 252,762 | 253,495 | |||||||||||||||||
7750 Wisconsin Avenue LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 7750 Wisconsin Avenue | |||||||||||||||||||
Ownership Percentage | [6] | 50.00% | ||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 70,147 | 69,724 | |||||||||||||||||
BP-M 3HB Venture LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | 3 Hudson Boulevard | |||||||||||||||||||
Ownership Percentage | 25.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 47,480 | 46,993 | |||||||||||||||||
SMBP Venture LP [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Properties | Santa Monica Business Park | |||||||||||||||||||
Ownership Percentage | 55.00% | |||||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1] | $ 175,799 | 180,952 | |||||||||||||||||
Unconsolidated Joint Ventures [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Carrying Value of investment | 23,900 | 25,100 | ||||||||||||||||||
Unconsolidated Joint Ventures [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Carrying Value of investment | (604,280) | [7] | (582,006) | |||||||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [1],[8] | $ 952,636 | $ 931,219 | |||||||||||||||||
|
Investments in Unconsolidated Joint Ventures (Balance Sheets of the Unconsolidated Joint Ventures) (Details) - USD ($) $ in Thousands |
Mar. 31, 2019 |
Jan. 01, 2019 |
Dec. 31, 2018 |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
ASSETS | |||||||||||||||
Real estate and development in process, net | $ 17,116,764 | $ 16,752,119 | |||||||||||||
Liabilities and Members'/Partners' Equity [Abstract] | |||||||||||||||
Mortgage notes payable, net | 2,959,908 | 2,964,572 | |||||||||||||
Other Liabilities | 369,575 | 503,726 | |||||||||||||
Total liabilities and equity / capital | 20,501,604 | 20,256,477 | |||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | 976,580 | 956,309 | |||||||||||||
Right of use assets - finance leases | 187,292 | 0 | |||||||||||||
Right of use assets - operating leases | 151,166 | $ 151,800 | 0 | ||||||||||||
Lease liabilities - finance leases | 173,123 | 0 | |||||||||||||
Lease liabilities - operating leases | 199,653 | $ 199,300 | 0 | ||||||||||||
Unconsolidated Joint Ventures [Member] | |||||||||||||||
ASSETS | |||||||||||||||
Real estate and development in process, net | 3,660,439 | [1] | 3,545,906 | ||||||||||||
Other assets | 534,534 | 543,512 | |||||||||||||
Total assets | 4,194,973 | 4,089,418 | |||||||||||||
Liabilities and Members'/Partners' Equity [Abstract] | |||||||||||||||
Mortgage notes payable, net | 2,074,473 | 2,017,609 | |||||||||||||
Other Liabilities | 604,280 | [2] | 582,006 | ||||||||||||
Members'/Partners' equity | 1,516,220 | 1,489,803 | |||||||||||||
Total liabilities and equity / capital | 4,194,973 | 4,089,418 | |||||||||||||
Company's share of equity | 642,564 | 622,498 | |||||||||||||
Basis differentials | [3] | 310,072 | 308,721 | ||||||||||||
Carrying value of the Company's investments in unconsolidated joint ventures | [4],[5] | 952,636 | 931,219 | ||||||||||||
Unconsolidated Joint Ventures [Member] | |||||||||||||||
Liabilities and Members'/Partners' Equity [Abstract] | |||||||||||||||
Other Liabilities | (23,900) | (25,100) | |||||||||||||
Basis differentials | 315,300 | $ 316,700 | |||||||||||||
Right of use assets - finance leases | 248,900 | ||||||||||||||
Right of use assets - operating leases | 12,700 | ||||||||||||||
Lease liabilities - finance leases | 393,900 | ||||||||||||||
Lease liabilities - operating leases | $ 17,200 | ||||||||||||||
|
Investments in Unconsolidated Joint Ventures (Statements of Operations of the Joint Ventures) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total revenue | $ 725,767 | $ 661,151 | |||||
Expenses | |||||||
Depreciation and amortization | 164,594 | 165,797 | |||||
Total expenses | 475,591 | 452,999 | |||||
Other expense | |||||||
Interest expense | 101,009 | 90,220 | |||||
Net income | 131,159 | 216,312 | |||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
Unconsolidated Joint Ventures [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Total revenue | [1] | 82,955 | 56,486 | ||||
Expenses | |||||||
Operating | 30,499 | 22,849 | |||||
Depreciation and amortization | 28,646 | 14,725 | |||||
Total expenses | 59,145 | 37,574 | |||||
Other expense | |||||||
Interest expense | 20,757 | 14,424 | |||||
Net income | 3,053 | 4,488 | |||||
Company's share of net income (loss) | 1,584 | 1,826 | |||||
Basis differential | [2] | (1,371) | (1,365) | ||||
Income from unconsolidated joint ventures | 213 | 461 | |||||
Straight-line rent adjustments | 5,800 | 1,800 | |||||
Colorado Center [Member] | Unconsolidated Joint Ventures [Member] | |||||||
Other expense | |||||||
Straight-line rent adjustments | 500 | 700 | |||||
"Above" and "below" market rent adjustments, net | $ 400 | $ 400 | |||||
|
Investments in Unconsolidated Joint Ventures Narrative (Details) $ in Thousands |
Jan. 24, 2019
USD ($)
ft²
|
Mar. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Mortgage notes payable, net | $ 2,959,908 | $ 2,964,572 | |
Annapolis Junction Building Six [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership Percentage | 50.00% | ||
Mortgage notes payable, net | $ 13,000 | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Number of extensions | 1 | ||
Extension Option (in years) | 1 | ||
Debt instrument, borrowing capacity | $ 14,300 | ||
Net Rentable Area (in sf) | ft² | 119,000 |
Commitments And Contingencies (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Dec. 31, 2009 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jan. 10, 2014 |
|
Commitments And Contingencies [Line Items] | ||||||||
Letter of credit and performance obligations | $ 7.7 | |||||||
Property insurance program per occurrence limits | 1,000.0 | |||||||
Per occurrence limit for NBCR Coverage | 1,000.0 | |||||||
Value of program trigger | $ 180.0 | |||||||
Coinsurance of program trigger | 19.00% | |||||||
Deductible in insurance as a percentage of the value of the affected property, San Francisco and Los Angeles | 3.00% | |||||||
Per occurrence limit of the earthquake insurance which covers San Francisco and Los Angeles regions | $ 240.0 | |||||||
Annual aggregate limit of the earthquake insurance which covers San Francisco and Los Angeles regions | 240.0 | |||||||
Amount of earthquake insurance provided by IXP, LLC as direct insurer San Francisco and Los Angeles | 20.0 | |||||||
767 Venture, LLC [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Maximum funding obligation | 110.5 | |||||||
Property insurance program per occurrence limits | 1,625.0 | |||||||
Lehman [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Bankruptcy claim, amount filed by general creditor | $ 45.3 | |||||||
Bankruptcy claim amount allowed by court to creditor | $ 45.2 | |||||||
Bankruptcy Claims, Amount of Claims Settled | $ 0.3 | $ 0.4 | $ 1.4 | $ 8.1 | $ 7.7 | |||
Bankruptcy remaining claim amount allowed by court to creditor | 27.2 | |||||||
601 Lexington Avenue [Member] | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Coverage For Acts Of Terrorism Under TRIA Covered in Excess of Amount Covered by IXP | 250.0 | |||||||
Boston Properties Limited Partnership | ||||||||
Commitments And Contingencies [Line Items] | ||||||||
Operating partnership guarantee to cover liabilities of IXP | $ 20.0 |
Noncontrolling Interests (Narrative) (Details) - Boston Properties Limited Partnership |
Mar. 31, 2019
shares
|
---|---|
Noncontrolling Interests [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Operating Partnership (OP) Units (in shares) | 16,844,947 |
Long-Term Incentive Plan (LTIP) Units (in shares) | 1,187,919 |
OPP Units 2012 [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
Outperformance awards in LTIP Units (in shares) | 118,067 |
2013 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2013 MYLTIP (in units) | 68,659 |
2014 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2014 MYLTIP (in units) | 23,100 |
2015 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2015 MYLTIPS (in units) | 28,724 |
2016 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2016 MYLTIPs (in units) | 98,706 |
2017 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2017 MYLTIP (in units) | 394,921 |
2018 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2018 MYLTIP | 336,195 |
2019 MYLTIP [Member] | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |
2019 MYLTIPS | 220,734 |
(Common Units) (Narrative) (Details) $ / shares in Units, $ in Millions |
3 Months Ended | ||
---|---|---|---|
Feb. 09, 2019
USD ($)
shares
|
Mar. 31, 2019
USD ($)
shares
yr
|
Mar. 29, 2019
$ / shares
|
|
OP Units [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
OP Units for redemption (in shares) | 14,129 | ||
Redemption of OP units issued on conversion of LTIP Units (in shares) | 12,929 | ||
Restriction on redemption of OP Unit to Common Stock (in years) | yr | 1 | ||
Redemption of OP Unit equivalent to Common Stock (in shares) | 1 | ||
Common units of operating partnership if converted value | $ | $ 2,400.0 | ||
Closing price of common stock (in dollars per share) | $ / shares | $ 133.88 | ||
2016 MYLTIP [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Final awards percentage of target | 69.50% | ||
Value of MYLTIP Awards | $ | $ 13.6 | ||
2016 MYLTIP Units Forfeited | 364,980 | ||
Boston Properties Limited Partnership | OP Units [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
MYLTIP distribution prior to measurement date | 10.00% | ||
Boston Properties Limited Partnership | 2017 MYLTIP [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
2017 MYLTIP (in units) | 394,921 | ||
Boston Properties Limited Partnership | 2018 MYLTIP [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
2018 MYLTIP | 336,195 | ||
Boston Properties Limited Partnership | 2019 MYLTIP [Member] | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
2019 MYLTIPS | 220,734 |
Noncontrolling Interests Common units distributions (Details) - Boston Properties Limited Partnership - $ / shares |
Jan. 30, 2019 |
Apr. 30, 2018 |
Jan. 30, 2018 |
Mar. 18, 2019 |
---|---|---|---|---|
Dividends Payable [Line Items] | ||||
Distributions Declared To OP And LTIP Units Per Unit | $ 0.95 | |||
Distributions Declared To MYLTIP Units Per Unit (in dollars per unit) | $ 0.095 | |||
Distributions made to OP and LTIP units per unit (in dollars per unit) | $ 0.95 | $ 0.80 | $ 0.80 | |
Distribution paid to MYLTIP Units (in dollars per unit) | $ 0.095 | $ 0.080 | $ 0.080 |
Noncontrolling Interests (Property Partnerships) (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Apr. 01, 2019 |
May 12, 2016 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest in Limited Partnerships | $ 1,710,608 | $ 1,711,445 | |||
Payments to Noncontrolling Interests | 24,128 | $ 30,690 | |||
Salesforce Tower [Member] | Consolidated Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Portion of project costs covered by a construction loan | 50.00% | ||||
Portion of costs funded (in percentage) | 50.00% | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||
Salesforce Tower [Member] | Parent Company [Member] | Consolidated Properties [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Costs funded (in percentage) | 2.50% | ||||
Preferred equity funded | $ 22,600 | ||||
Salesforce Tower [Member] | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||
Payments to Noncontrolling Interests | $ 210,900 | ||||
Repayment of Preferred Equity | $ 24,100 |
Stockholders' Equity / Partners' Capital Narrative (Details) |
3 Months Ended | ||||
---|---|---|---|---|---|
Jun. 02, 2017
USD ($)
yr
|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Dec. 31, 2018
USD ($)
$ / shares
shares
|
Mar. 27, 2018
$ / shares
|
Jun. 03, 2014
USD ($)
|
|
Class of Stock [Line Items] | |||||
Common stock, shares outstanding | 154,515,486 | 154,458,478 | |||
General Partners' Capital Account, Units Outstanding | 1,725,484 | ||||
Limited Partners' Capital Account, Units Outstanding | 152,790,002 | ||||
Shares of Common Stock in connection with the redemption of an equal number of OP Units (in shares) | 14,129 | ||||
Common Stock, Value, Issued | $ | $ 1,545,000 | $ 1,545,000 | |||
ATM Program [Member] | |||||
Class of Stock [Line Items] | |||||
At the market stock offering program, aggregate value of common stock | $ | $ 600,000,000 | $ 600,000,000 | |||
At Market Stock Offering Program Maximum Length Of Sale In Years | yr | 3 | ||||
Common Stock, Value, Issued | $ | $ 0 | ||||
Series B Cumulative Redeemable Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Series B, Shares Outstanding (in shares) | 80,000 | 80,000 | |||
Series B, Dividend Rate, Percentage | 5.25% | ||||
Series B, Liquidation Preference Per Share (dollars per share) | $ / shares | $ 2,500.00 | $ 2,500 | $ 2,500.00 | ||
Ratio of depository shares to shares of Series B Preferred Stock | 0.01 | ||||
Depository shares of Series B Cumulative Redeemable Preferred [Member] | |||||
Class of Stock [Line Items] | |||||
Series B, Shares Outstanding (in shares) | 8,000,000 | ||||
Series B, Liquidation Preference Per Share (dollars per share) | $ / shares | $ 25.00 | $ 25.00 | |||
Boston Properties Limited Partnership | |||||
Class of Stock [Line Items] | |||||
General Partners' Capital Account, Units Outstanding | 1,725,484 | 1,722,336 | |||
Limited Partners' Capital Account, Units Outstanding | 152,790,002 | 152,736,142 | |||
Boston Properties Limited Partnership | Series B Cumulative Redeemable Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Series B, Shares Outstanding (in shares) | 80,000 | 80,000 | |||
Series B, Liquidation Preference Per Share (dollars per share) | $ / shares | $ 2,500 | $ 2,500 |
Stockholders' Equity / Partners' Capital Stockholders' Equity / Partners' Capital Dividends / Distributions (Details) - $ / shares |
Feb. 15, 2019 |
Jan. 30, 2019 |
May 15, 2018 |
Apr. 30, 2018 |
Feb. 15, 2018 |
Jan. 30, 2018 |
Mar. 18, 2019 |
---|---|---|---|---|---|---|---|
Entity Information [Line Items] | |||||||
Dividends Payable, Amount Per Share / Unit | $ 0.95 | ||||||
Dividends, Per Share / Unit | $ 0.95 | $ 0.80 | $ 0.80 | ||||
Boston Properties Limited Partnership | |||||||
Entity Information [Line Items] | |||||||
Dividends Payable, Amount Per Share / Unit | 0.95 | ||||||
Dividends, Per Share / Unit | $ 0.95 | $ 0.80 | $ 0.80 | ||||
Series B Cumulative Redeemable Preferred Stock [Member] | |||||||
Entity Information [Line Items] | |||||||
Dividends Payable, Amount Per Share / Unit | $ 32.8125 | ||||||
Dividends, Per Share / Unit | $ 32.8125 | $ 32.8125 | $ 32.8125 |
Earnings Per Share / Common Unit (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Basic Earnings: | ||
Net income attributable to the Company's common shareholders / unitholders | $ 98,105 | $ 176,021 |
Net income attributable to the Company's common shareholders / unitholders (in shares / units) | 154,525,000 | 154,385,000 |
Net income (in dollars per share / unit) | $ 0.63 | $ 1.14 |
Allocation of undistributed earnings to participating securities (numerator) | $ (127) | |
Allocation of undistributed earnings to participating securities (in shares) | 0 | |
Allocation of undistributed earnings to participating securities (in dollars per shares / units) | $ 0 | |
Net income attributable to the Company's common shareholders / unitholders | $ 175,894 | |
Net income attributable to the Company's common shareholders / unitholders (in shares / units) | 154,385,000 | |
Net income attributable to the Company's common shareholders / unitholders (in dollars per share / unit) | $ 1.14 | |
Effect of Dilutive Securities: | ||
Stock Based Compensation, Income (Numerator) | $ 0 | $ 0 |
Stock Based Compensation, Shares / Units (Denominator) | 319,000 | 320,000 |
Stock Based Compensation, Per Share / Unit Amount (in dollars per share / unit) | $ 0.00 | $ 0.00 |
Diluted Earnings: | ||
Net income attributable to the Company's common shareholders / unitholders (Numerator) | $ 98,105 | $ 175,894 |
Net income attributable to to the Company's shareholders / unitholder (number of shares) | 154,844,000 | 154,705,000 |
Diluted Earnings: Net income, Per Share Amount (in dollars per share / unit) | $ 0.63 | $ 1.14 |
Boston Properties Limited Partnership | ||
Entity Information [Line Items] | ||
Redeemable Common Units | 17,606,000 | 17,482,000 |
Basic Earnings: | ||
Net income attributable to the Company's common shareholders / unitholders | $ 113,382 | $ 200,907 |
Net income attributable to the Company's common shareholders / unitholders (in shares / units) | 172,131,000 | 171,867,000 |
Net income (in dollars per share / unit) | $ 0.66 | $ 1.17 |
Allocation of undistributed earnings to participating securities (numerator) | $ (141) | |
Allocation of undistributed earnings to participating securities (in shares) | 0 | |
Allocation of undistributed earnings to participating securities (in dollars per shares / units) | $ 0 | |
Net income attributable to the Company's common shareholders / unitholders | $ 200,766 | |
Net income attributable to the Company's common shareholders / unitholders (in shares / units) | 171,867,000 | |
Net income attributable to the Company's common shareholders / unitholders (in dollars per share / unit) | $ 1.17 | |
Effect of Dilutive Securities: | ||
Stock Based Compensation, Income (Numerator) | $ 0 | $ 0 |
Stock Based Compensation, Shares / Units (Denominator) | 319,000 | 320,000 |
Stock Based Compensation, Per Share / Unit Amount (in dollars per share / unit) | $ 0.00 | $ 0.00 |
Diluted Earnings: | ||
Net income attributable to the Company's common shareholders / unitholders (Numerator) | $ 113,382 | $ 200,766 |
Net income attributable to to the Company's shareholders / unitholder (number of shares) | 172,450,000 | 172,187,000 |
Diluted Earnings: Net income, Per Share Amount (in dollars per share / unit) | $ 0.66 | $ 1.17 |
Stock Option and Incentive Plan Stock Option and Incentive Plan (Narrative) (Details) $ in Millions |
Feb. 09, 2019
USD ($)
shares
|
Feb. 05, 2019
USD ($)
yr
shares
|
---|---|---|
2019 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
TSR Measurement, Years | yr | 3 | |
Distributions Percent Before Measurement Date | 10.00% | |
Value of MYLTIP Awards | $ | $ 13.5 | |
MYLTIP Value Amortized Into Earnings, Years | yr | 4 | |
2016 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Value of MYLTIP Awards | $ | $ 13.6 | |
Final awards percentage of target | 69.50% | |
2016 MYLTIP Units Forfeited | 364,980 | |
Nareit Office Index adjusted [Member] | 2019 MYLTIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Minimum earned awards | 0 | |
Maximum Earned Awards | 220,734 | |
Target Tier | 110,367 |
Stock Option and Incentive Plan Restricted Stock (Narrative) (Details) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | shares | 154,594,386 | 154,537,378 | |
Common Stock, Value, Issued | $ 1,545 | $ 1,545 | |
Stock based compensation expense | $ 14,800 | $ 14,200 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued | shares | 23,083 | ||
Employee and director payment per share (in dollars per share) | $ / shares | $ 0.01 | ||
Common Stock, Value, Issued | $ 3,000 | ||
Employee's weighted average cost per share (in dollars per share) | $ / shares | $ 131.23 | ||
LTIP Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of LTIP units issued | $ 20,900 | ||
Per unit fair value weighted-average (in dollars per share) | $ / shares | $ 121.41 | ||
Expected life assumed to calculate per unit fair value per LTIP unit (years) | 5 years 8 months 12 days | ||
Risk-free rate | 2.68% | ||
Expected price volatility | 27.00% | ||
LTIPs (including vested 2012 OPP Awards and vested MYLTIPS) And Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting annual installments | 4 | ||
Unrecognized compensation expenses | $ 38,400 | ||
Unvested MYLTIP Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expenses | $ 22,600 | ||
Weighted-average period (years) | 2 years 10 months 24 days | ||
Boston Properties Limited Partnership | LTIP Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
LTIP units issued (in shares) | shares | 172,166 | ||
Boston Properties Limited Partnership | 2019 MYLTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
MYLTIP units issued (in shares) | shares | 220,734 | ||
Boston Properties Limited Partnership | LTIPs and 2019 MYLTIP Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee and director payment per share (in dollars per share) | $ / shares | $ 0.25 |
Segment Information (Schedule Of Reconciliation Of Net Operating Income To Net Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income attributable to the Company's common shareholders / unitholders | $ 98,105 | $ 176,021 | ||
Preferred Stock Dividends / Distributions | (2,625) | (2,625) | ||
Noncontrolling interest-common units of the Operating Partnership | (11,599) | (20,432) | ||
Noncontrolling interest in property partnerships | (18,830) | (17,234) | ||
Interest expense | (101,009) | (90,220) | ||
Net operating income from unconsolidated joint ventures | 25,349 | 16,060 | ||
Depreciation and amortization expense | (164,594) | (165,797) | ||
Transaction costs | (460) | (21) | ||
Payroll and related costs from management service contracts | (7,863) | (8,073) | ||
General and administrative expense | (41,762) | (35,894) | ||
Net operating income attributable to noncontrolling interests in property partnerships | 47,085 | 45,909 | ||
Gains (losses) from investments in securities | (2,969) | 126 | ||
Interest and other income | (3,753) | (1,648) | ||
Income from unconsolidated joint ventures | (213) | (461) | ||
Direct reimbursement of payroll and related costs from management service contracts | [1] | (8,938) | (9,102) | |
Development and management services revenue | (9,277) | (8,405) | ||
Company's Share of Net Operating Income | 425,979 | 371,610 | ||
Business Intersegment, Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income attributable to the Company's common shareholders / unitholders | 98,105 | 176,021 | ||
Preferred Stock Dividends / Distributions | 2,625 | 2,625 | ||
Noncontrolling interest-common units of the Operating Partnership | 11,599 | 20,432 | ||
Noncontrolling interest in property partnerships | 18,830 | 17,234 | ||
Interest expense | 101,009 | 90,220 | ||
Impairment loss | 24,038 | 0 | ||
Net operating income from unconsolidated joint ventures | 25,349 | 16,060 | ||
Depreciation and amortization expense | 164,594 | 165,797 | ||
Transaction costs | 460 | 21 | ||
Payroll and related costs from management service contracts | 3,395 | 2,885 | ||
General and administrative expense | 41,762 | 35,894 | ||
Net operating income attributable to noncontrolling interests in property partnerships | 47,085 | 45,909 | ||
Gains (losses) from investments in securities | 2,969 | (126) | ||
Interest and other income | 3,753 | 1,648 | ||
(Losses) gains on sales of real estate | (905) | 96,397 | ||
Income from unconsolidated joint ventures | 213 | 461 | ||
Direct reimbursement of payroll and related costs from management service contracts | 3,395 | 2,885 | ||
Development and management services revenue | 9,277 | 8,405 | ||
Company's Share of Net Operating Income | 425,979 | 371,610 | ||
Boston Properties Limited Partnership | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income attributable to the Company's common shareholders / unitholders | 113,382 | 200,907 | ||
Preferred Stock Dividends / Distributions | (2,625) | (2,625) | ||
Noncontrolling interest in property partnerships | (18,830) | (17,234) | ||
Interest expense | (101,009) | (90,220) | ||
Depreciation and amortization expense | (162,682) | (163,853) | ||
Transaction costs | (460) | (21) | ||
General and administrative expense | (41,762) | (35,894) | ||
Gains (losses) from investments in securities | (2,969) | 126 | ||
Interest and other income | (3,753) | (1,648) | ||
Income from unconsolidated joint ventures | (213) | (461) | ||
Development and management services revenue | (9,277) | (8,405) | ||
Boston Properties Limited Partnership | Business Intersegment, Eliminations [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Net income attributable to the Company's common shareholders / unitholders | 113,382 | 200,907 | ||
Preferred Stock Dividends / Distributions | 2,625 | 2,625 | ||
Noncontrolling interest in property partnerships | 18,830 | 17,234 | ||
Interest expense | 101,009 | 90,220 | ||
Impairment loss | 22,272 | 0 | ||
Net operating income from unconsolidated joint ventures | 25,349 | 16,060 | ||
Depreciation and amortization expense | 162,682 | 163,853 | ||
Transaction costs | 460 | 21 | ||
Payroll and related costs from management service contracts | 3,395 | 2,885 | ||
General and administrative expense | 41,762 | 35,894 | ||
Net operating income attributable to noncontrolling interests in property partnerships | 47,085 | 45,909 | ||
Gains (losses) from investments in securities | 2,969 | (126) | ||
Interest and other income | 3,753 | 1,648 | ||
(Losses) gains on sales of real estate | (905) | 98,907 | ||
Income from unconsolidated joint ventures | 213 | 461 | ||
Direct reimbursement of payroll and related costs from management service contracts | 3,395 | 2,885 | ||
Development and management services revenue | 9,277 | 8,405 | ||
Company's Share of Net Operating Income | $ 425,979 | $ 371,610 | ||
|
Segment Information (Schedule Of Segment Reporting By Geographic Area And Property Type) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 696,442 | $ 636,600 | ||
Rental Revenue: Residential | [1] | 7,715 | 4,159 | ||
Rental Revenue: Hotel | [1] | 8,938 | 9,102 | ||
Total revenue | [1] | $ 713,095 | $ 649,861 | ||
Rental Revenue: % of Grand Totals | 100.00% | 100.00% | |||
Rental Expenses: Office | $ 253,743 | $ 238,057 | |||
Rental Expenses: Residential | 3,774 | 2,272 | |||
Rental Expense: Hotel | 7,863 | 8,073 | |||
Rental Expenses: Total | $ 265,380 | $ 248,402 | |||
Rental Expenses: % Of Grand Totals | 100.00% | 100.00% | |||
Net operating Income | $ 447,715 | $ 401,459 | |||
Net operating Income: % of Grand Totals | 100.00% | 100.00% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ (47,085) | $ (45,909) | |||
Company's share of net operating income from unconsolidated joint ventures | 25,349 | 16,060 | |||
Company's Share of Net Operating Income | $ 425,979 | $ 371,610 | |||
Company's Share of Net Operating Income: % of Grand Totals | 100.00% | 100.00% | |||
Boston [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 217,411 | $ 204,997 | ||
Rental Revenue: Residential | [1] | 2,701 | 1,152 | ||
Rental Revenue: Hotel | [1] | 8,938 | 9,102 | ||
Total revenue | [1] | $ 229,050 | $ 215,251 | ||
Rental Revenue: % of Grand Totals | 32.12% | 33.12% | |||
Rental Expenses: Office | $ 79,500 | $ 80,324 | |||
Rental Expenses: Residential | 1,206 | 514 | |||
Rental Expense: Hotel | 7,863 | 8,073 | |||
Rental Expenses: Total | $ 88,569 | $ 88,911 | |||
Rental Expenses: % Of Grand Totals | 33.37% | 35.79% | |||
Net operating Income | $ 140,481 | $ 126,340 | |||
Net operating Income: % of Grand Totals | 31.38% | 31.47% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ (9,373) | $ (8,129) | |||
Company's share of net operating income from unconsolidated joint ventures | 772 | 534 | |||
Company's Share of Net Operating Income | $ 131,880 | $ 118,745 | |||
Company's Share of Net Operating Income: % of Grand Totals | 30.96% | 31.96% | |||
Los Angeles [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 0 | $ 0 | ||
Rental Revenue: Residential | [1] | 0 | 0 | ||
Rental Revenue: Hotel | [1] | 0 | 0 | ||
Total revenue | [1] | $ 0 | $ 0 | ||
Rental Revenue: % of Grand Totals | 0.00% | 0.00% | |||
Rental Expenses: Office | $ 0 | $ 0 | |||
Rental Expenses: Residential | 0 | 0 | |||
Rental Expense: Hotel | 0 | 0 | |||
Rental Expenses: Total | $ 0 | $ 0 | |||
Rental Expenses: % Of Grand Totals | 0.00% | 0.00% | |||
Net operating Income | $ 0 | $ 0 | |||
Net operating Income: % of Grand Totals | 0.00% | 0.00% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ 0 | $ 0 | |||
Company's share of net operating income from unconsolidated joint ventures | 15,708 | 7,074 | |||
Company's Share of Net Operating Income | $ 15,708 | $ 7,074 | |||
Company's Share of Net Operating Income: % of Grand Totals | 3.69% | 1.90% | |||
New York [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 258,631 | $ 242,398 | ||
Rental Revenue: Residential | [1] | 0 | 0 | ||
Rental Revenue: Hotel | [1] | 0 | 0 | ||
Total revenue | [1] | $ 258,631 | $ 242,398 | ||
Rental Revenue: % of Grand Totals | 36.27% | 37.31% | |||
Rental Expenses: Office | $ 96,971 | $ 93,762 | |||
Rental Expenses: Residential | 0 | 0 | |||
Rental Expense: Hotel | 0 | 0 | |||
Rental Expenses: Total | $ 96,971 | $ 93,762 | |||
Rental Expenses: % Of Grand Totals | 36.54% | 37.75% | |||
Net operating Income | $ 161,660 | $ 148,636 | |||
Net operating Income: % of Grand Totals | 36.11% | 37.02% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ (37,264) | $ (37,946) | |||
Company's share of net operating income from unconsolidated joint ventures | 1,786 | 1,661 | |||
Company's Share of Net Operating Income | $ 126,182 | $ 112,351 | |||
Company's Share of Net Operating Income: % of Grand Totals | 29.62% | 30.23% | |||
San Francisco [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 124,055 | $ 89,893 | ||
Rental Revenue: Residential | [1] | 0 | 0 | ||
Rental Revenue: Hotel | [1] | 0 | 0 | ||
Total revenue | [1] | $ 124,055 | $ 89,893 | ||
Rental Revenue: % of Grand Totals | 17.40% | 13.83% | |||
Rental Expenses: Office | $ 41,125 | $ 27,628 | |||
Rental Expenses: Residential | 0 | 0 | |||
Rental Expense: Hotel | 0 | 0 | |||
Rental Expenses: Total | $ 41,125 | $ 27,628 | |||
Rental Expenses: % Of Grand Totals | 15.50% | 11.12% | |||
Net operating Income | $ 82,930 | $ 62,265 | |||
Net operating Income: % of Grand Totals | 18.52% | 15.51% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ (448) | $ 166 | |||
Company's share of net operating income from unconsolidated joint ventures | 0 | 0 | |||
Company's Share of Net Operating Income | $ 82,482 | $ 62,431 | |||
Company's Share of Net Operating Income: % of Grand Totals | 19.36% | 16.80% | |||
Washington, DC [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Rental Revenue: Office | [1] | $ 96,345 | $ 99,312 | ||
Rental Revenue: Residential | [1] | 5,014 | 3,007 | ||
Rental Revenue: Hotel | [1] | 0 | 0 | ||
Total revenue | [1] | $ 101,359 | $ 102,319 | ||
Rental Revenue: % of Grand Totals | 14.21% | 15.74% | |||
Rental Expenses: Office | $ 36,147 | $ 36,343 | |||
Rental Expenses: Residential | 2,568 | 1,758 | |||
Rental Expense: Hotel | 0 | 0 | |||
Rental Expenses: Total | $ 38,715 | $ 38,101 | |||
Rental Expenses: % Of Grand Totals | 14.59% | 15.34% | |||
Net operating Income | $ 62,644 | $ 64,218 | |||
Net operating Income: % of Grand Totals | 13.99% | 16.00% | |||
Net operating income attributable to noncontrolling interests in property partnerships | $ 0 | $ 0 | |||
Company's share of net operating income from unconsolidated joint ventures | 7,083 | 6,791 | |||
Company's Share of Net Operating Income | $ 69,727 | $ 71,009 | |||
Company's Share of Net Operating Income: % of Grand Totals | 16.37% | 19.11% | |||
|
Segment Information Narrative (Details) - Los Angeles [Member] ft² in Millions |
Mar. 31, 2019
ft²
Buildings
|
---|---|
Segment Reporting Information [Line Items] | |
Net Rentable Area (in sf) | ft² | 2.3 |
Number of real estate properties | Buildings | 27 |
Subsequent Events Narrative (Details) ft² in Thousands, $ in Thousands |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Apr. 26, 2019
USD ($)
ft²
yr
|
Apr. 01, 2019
USD ($)
ft²
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Apr. 18, 2019
USD ($)
ft²
|
|||
Subsequent Event [Line Items] | |||||||
Payments to Noncontrolling Interests | $ 24,128 | $ 30,690 | |||||
Salesforce Tower [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||
Payments to Noncontrolling Interests | $ 210,900 | ||||||
Repayment of Preferred Equity | $ 24,100 | ||||||
7750 Wisconsin Avenue LLC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ownership Percentage | [1] | 50.00% | |||||
Subsequent Event [Member] | Salesforce Tower [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||
Payments to Noncontrolling Interests | $ 210,900 | ||||||
Repayment of Preferred Equity | $ 24,100 | ||||||
Net Rentable Area (in sf) | ft² | 1,421 | ||||||
Subsequent Event [Member] | One Tower Center [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Net Rentable Area (in sf) | ft² | 410 | ||||||
Gross Sale Price | $ 38,000 | ||||||
Subsequent Event [Member] | 7750 Wisconsin Avenue LLC [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Net Rentable Area (in sf) | ft² | 734 | ||||||
Ownership Percentage | 50.00% | ||||||
Construction Loan Facility Borrowing Capacity | $ 255,000 | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||||
Number of extensions | 2 | ||||||
Extension Option (in years) | yr | 1 | ||||||
|
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