| BXP, INC.CONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for share and par value amounts) |
|---|
| September 30, 2024 | December 31, 2023 |
|---|
| ASSETS |
|---|
| Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,646,435 and $7,054,075 at September 30, 2024 and December 31, 2023, respectively) | $27,557,824 | $26,749,209 |
|---|
| Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at September 30, 2024 and December 31, 2023, respectively) | 372,896 | 401,680 |
|---|
| Right of use assets - operating leases (amounts related to VIEs of $145,052 and $158,885 at September 30, 2024 and December 31, 2023, respectively) | 339,804 | 324,298 |
|---|
| Less: accumulated depreciation (amounts related to VIEs of $(1,601,919) and $(1,501,483) at September 30, 2024 and December 31, 2023, respectively) | (7,369,545) | (6,881,728) |
|---|
| Total real estate | 20,900,979 | 20,593,459 |
|---|
| Cash and cash equivalents (amounts related to VIEs of $322,604 and $245,317 at September 30, 2024 and December 31, 2023, respectively) | 1,420,475 | 1,531,477 |
|---|
| Cash held in escrows (amounts related to VIEs of $5,032 and $22,160 at September 30, 2024 and December 31, 2023, respectively) | 51,009 | 81,090 |
|---|
| Investments in securities | 39,186 | 36,337 |
|---|
| Tenant and other receivables, net (amounts related to VIEs of $19,216 and $27,987 at September 30, 2024 and December 31, 2023, respectively) | 99,706 | 122,407 |
|---|
| Note receivable, net | 3,937 | 1,714 |
|---|
| Related party notes receivable, net | 88,788 | 88,779 |
|---|
| Sales-type lease receivable, net | 14,429 | 13,704 |
|---|
| Accrued rental income, net (amounts related to VIEs of $425,867 and $401,159 at September 30, 2024 and December 31, 2023, respectively) | 1,438,492 | 1,355,212 |
|---|
| Deferred charges, net (amounts related to VIEs of $201,947 and $175,383 at September 30, 2024 and December 31, 2023, respectively) | 794,571 | 760,421 |
|---|
| Prepaid expenses and other assets (amounts related to VIEs of $50,275 and $11,824 at September 30, 2024 and December 31, 2023, respectively) | 132,078 | 64,230 |
|---|
| Investments in unconsolidated joint ventures | 1,421,886 | 1,377,319 |
|---|
| Total assets | $26,405,536 | $26,026,149 |
|---|
| LIABILITIES AND EQUITY |
|---|
| Liabilities: |
|---|
| Mortgage notes payable, net (amounts related to VIEs of $3,280,817 and $3,277,185 at September 30, 2024 and December 31, 2023, respectively) | $4,275,155 | $4,166,379 |
|---|
| Unsecured senior notes, net | 10,642,033 | 10,491,617 |
|---|
| Unsecured line of credit | — | — |
|---|
| Unsecured term loans, net | 798,058 | 1,198,301 |
|---|
| Unsecured commercial paper | 500,000 | — |
|---|
| Lease liabilities - finance leases (amounts related to VIEs of $20,897 and $20,794 at September 30, 2024 and December 31, 2023, respectively) | 373,260 | 417,961 |
|---|
| Lease liabilities - operating leases (amounts related to VIEs of $154,637 and $145,826 at September 30, 2024 and December 31, 2023, respectively) | 389,444 | 350,391 |
|---|
| Accounts payable and accrued expenses (amounts related to VIEs of $120,092 and $59,667 at September 30, 2024 and December 31, 2023, respectively) | 444,288 | 458,329 |
|---|
| Dividends and distributions payable | 172,191 | 171,176 |
|---|
| Accrued interest payable | 121,360 | 133,684 |
|---|
| Other liabilities (amounts related to VIEs of $89,876 and $115,275 at September 30, 2024 and December 31, 2023, respectively) | 407,441 | 445,947 |
|---|
| Total liabilities | 18,123,230 | 17,833,785 |
|---|
| BXP, INC.CONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for share and par value amounts) |
|---|
| September 30, 2024 | December 31, 2023 |
|---|
| Commitments and contingencies (See Note 8) |
|---|
| Redeemable deferred stock units— 132,930 and 119,471 units outstanding at redemption value at September 30, 2024 and December 31, 2023, respectively | 10,696 | 8,383 |
|---|
| Equity: |
|---|
| Stockholders’ equity attributable to BXP, Inc.: |
|---|
| 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, none issued or outstanding | — | — |
|---|
| Common stock, $0.01 par value, 250,000,000 shares authorized, 158,058,798 and 157,019,766 issued and 157,979,898 and 156,940,866 outstanding at September 30, 2024 and December 31, 2023, respectively | 1,580 | 1,569 |
|---|
| Additional paid-in capital | 6,822,489 | 6,715,149 |
|---|
| Dividends in excess of earnings | (1,035,710) | (816,152) |
|---|
| Treasury common stock at cost, 78,900 shares at September 30, 2024 and December 31, 2023 | (2,722) | (2,722) |
|---|
| Accumulated other comprehensive loss | (26,428) | (21,147) |
|---|
| Total stockholders’ equity attributable to BXP, Inc. | 5,759,209 | 5,876,697 |
|---|
| Noncontrolling interests: |
|---|
| Common units of Boston Properties Limited Partnership | 638,129 | 666,580 |
|---|
| Property partnerships | 1,874,272 | 1,640,704 |
|---|
| Total equity | 8,271,610 | 8,183,981 |
|---|
| Total liabilities and equity | $26,405,536 | $26,026,149 |
|---|
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per share amounts)
| Three months ended September 30, | Nine months ended September 30, |
|---|
| 2024 | 2023 | 2024 | 2023 |
|---|
| Revenue |
|---|
| Lease | $799,471 | $767,181 | $2,378,616 | $2,285,789 |
|---|
| Parking and other | 34,255 | 30,428 | 101,086 | 81,421 |
|---|
| Hotel | 15,082 | 13,484 | 38,080 | 35,554 |
|---|
| Development and management services | 6,770 | 9,284 | 19,276 | 28,122 |
|---|
| Direct reimbursements of payroll and related costs from management services contracts | 3,649 | 3,906 | 12,090 | 13,750 |
|---|
| Total revenue | 859,227 | 824,283 | 2,549,148 | 2,444,636 |
|---|
| Expenses |
|---|
| Operating |
|---|
| Rental | 327,897 | 300,192 | 963,480 | 882,536 |
|---|
| Hotel | 9,833 | 9,020 | 25,687 | 23,852 |
|---|
| General and administrative | 33,352 | 31,410 | 127,479 | 131,387 |
|---|
| Payroll and related costs from management services contracts | 3,649 | 3,906 | 12,090 | 13,750 |
|---|
| Transaction costs | 188 | 751 | 890 | 1,970 |
|---|
| Depreciation and amortization | 222,890 | 207,435 | 661,148 | 618,746 |
|---|
| Total expenses | 597,809 | 552,714 | 1,790,774 | 1,672,241 |
|---|
| Other income (expense) |
|---|
| Income (loss) from unconsolidated joint ventures | (7,011) | (247,556) | 6,376 | (261,793) |
|---|
| Gains on sales of real estate | 517 | 517 | 517 | 517 |
|---|
| Interest and other income (loss) | 14,430 | 20,715 | 39,747 | 48,999 |
|---|
| Gains (losses) from investments in securities | 2,198 | (925) | 4,785 | 2,311 |
|---|
| Unrealized gain (loss) on non-real estate investment | 94 | (51) | 548 | 332 |
|---|
| Impairment loss | — | — | (13,615) | — |
|---|
| Interest expense | (163,194) | (147,812) | (474,727) | (424,492) |
|---|
| Net income (loss) | 108,452 | (103,543) | 322,005 | 138,269 |
|---|
| Net (income) loss attributable to noncontrolling interests |
|---|
| Noncontrolling interests in property partnerships | (15,237) | (20,909) | (50,283) | (59,337) |
|---|
| Noncontrolling interest—common units of the Operating Partnership | (9,587) | 12,626 | (28,596) | (8,642) |
|---|
| Net income (loss) attributable to BXP, Inc. | $83,628 | $(111,826) | 243,126 | 70,290 |
|---|
| Basic earnings per common share attributable to BXP, Inc. |
|---|
| Net income (loss) | $0.53 | $(0.71) | $1.55 | $0.45 |
|---|
| Weighted average number of common shares outstanding | 157,725 | 156,880 | 157,250 | 156,837 |
|---|
| Diluted earnings per common share attributable to BXP, Inc. |
|---|
| Net income (loss) | $0.53 | $(0.71) | $1.54 | $0.45 |
|---|
| Weighted average number of common and common equivalent shares outstanding | 158,213 | 156,880 | 157,547 | 157,177 |
|---|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| Three months ended September 30, | Nine months ended September 30, |
|---|
| 2024 | 2023 | 2024 | 2023 |
|---|
| Net income (loss) | $108,452 | $(103,543) | $322,005 | $138,269 |
|---|
| Other comprehensive income (loss): |
|---|
| Effective portion of interest rate contracts | (32,263) | 5,459 | (14,976) | 13,886 |
|---|
| Amortization of interest rate contracts (1) | 3,077 | 1,677 | 9,518 | 5,026 |
|---|
| Other comprehensive income (loss) | (29,186) | 7,136 | (5,458) | 18,912 |
|---|
| Comprehensive income (loss) | 79,266 | (96,407) | 316,547 | 157,181 |
|---|
| Net income attributable to noncontrolling interests | (24,824) | (8,283) | (78,879) | (67,979) |
|---|
| Other comprehensive (income) loss attributable to noncontrolling interests | 2,913 | (864) | 177 | (2,327) |
|---|
| Comprehensive income (loss) attributable to BXP, Inc. | $57,355 | $(105,554) | $237,845 | $86,875 |
|---|
(1)Amounts reclassified from comprehensive income primarily to interest expense within BXP, Inc.’s Consolidated Statements of Operations.
| BXP, INC.CONSOLIDATED STATEMENTS OF EQUITY (unaudited and in thousands) |
|---|
| Common 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, June 30, 2024 | 157,098 | $1,571 | $6,768,686 | $(964,518) | $(2,722) | $(155) | $677,789 | $1,801,676 | $8,282,327 |
|---|
| Redemption of operating partnership units to common stock | 875 | 9 | 30,983 | — | — | — | (30,992) | — | — |
|---|
| Allocated net income for the period | — | — | — | 83,628 | — | — | 9,587 | 15,237 | 108,452 |
|---|
| Dividends/distributions declared | — | — | — | (154,820) | — | — | (17,986) | — | (172,806) |
|---|
| Shares issued pursuant to stock purchase plan | 9 | — | 541 | — | — | — | — | — | 541 |
|---|
| Net activity from stock option and incentive plan | (2) | — | (1,773) | — | — | — | 3,225 | — | 1,452 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 23,615 | — | — | — | — | 72,109 | 95,724 |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (14,894) | (14,894) |
|---|
| Effective portion of interest rate contracts | — | — | — | — | — | (28,910) | (3,353) | — | (32,263) |
|---|
| Amortization of interest rate contracts | — | — | — | — | — | 2,637 | 296 | 144 | 3,077 |
|---|
| Reallocation of noncontrolling interest | — | — | 437 | — | — | — | (437) | — | — |
|---|
| Equity, September 30, 2024 | 157,980 | $1,580 | $6,822,489 | $(1,035,710) | $(2,722) | $(26,428) | $638,129 | $1,874,272 | $8,271,610 |
|---|
| Equity, June 30, 2023 | 156,854 | $1,569 | $6,561,161 | $(516,550) | $(2,722) | $(3,406) | $689,123 | $1,557,368 | $8,286,543 |
|---|
| Redemption of operating partnership units to common stock | 79 | — | 2,920 | — | — | — | (2,920) | — | — |
|---|
| Allocated net income (loss) for the period | — | — | — | (111,925) | — | — | (12,527) | 20,909 | (103,543) |
|---|
| Dividends/distributions declared | — | — | — | (153,800) | — | — | (18,301) | — | (172,101) |
|---|
| Shares issued pursuant to stock purchase plan | 10 | — | 570 | — | — | — | — | — | 570 |
|---|
| Net activity from stock option and incentive plan | (4) | — | 421 | — | — | — | 4,065 | — | 4,486 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | 22,635 | 22,635 |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (12,150) | (12,150) |
|---|
| Effective portion of interest rate contracts | — | — | — | — | — | 4,896 | 563 | — | 5,459 |
|---|
| Amortization of interest rate contracts | — | — | — | — | — | 1,376 | 157 | 144 | 1,677 |
|---|
| Reallocation of noncontrolling interest | — | — | 3,573 | — | — | — | (3,573) | — | — |
|---|
| Equity, September 30, 2023 | 156,939 | $1,569 | $6,568,645 | $(782,275) | $(2,722) | $2,866 | $656,587 | $1,588,906 | $8,033,576 |
|---|
| BXP, INC.CONSOLIDATED STATEMENTS OF EQUITY (unaudited and in thousands) |
|---|
| Common 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, 2023 | 156,941 | $1,569 | $6,715,149 | $(816,152) | $(2,722) | $(21,147) | $666,580 | $1,640,704 | $8,183,981 |
|---|
| Redemption of operating partnership units to common stock | 952 | 11 | 33,735 | — | — | — | (33,746) | — | — |
|---|
| Allocated net income for the period | — | — | — | 243,126 | — | — | 28,596 | 50,283 | 322,005 |
|---|
| Dividends/distributions declared | — | — | — | (462,684) | — | — | (55,692) | — | (518,376) |
|---|
| Shares issued pursuant to stock purchase plan | 17 | — | 1,141 | — | — | — | — | — | 1,141 |
|---|
| Net activity from stock option and incentive plan | 70 | — | 2,988 | — | — | — | 31,535 | — | 34,523 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 70,941 | — | — | — | — | 235,206 | 306,147 |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (52,353) | (52,353) |
|---|
| Effective portion of interest rate contracts | — | — | — | — | — | (13,429) | (1,547) | — | (14,976) |
|---|
| Amortization of interest rate contracts | — | — | — | — | — | 8,148 | 938 | 432 | 9,518 |
|---|
| Reallocation of noncontrolling interest | — | — | (1,465) | — | — | — | 1,465 | — | — |
|---|
| Equity, September 30, 2024 | 157,980 | $1,580 | $6,822,489 | $(1,035,710) | $(2,722) | $(26,428) | $638,129 | $1,874,272 | $8,271,610 |
|---|
| Equity, December 31, 2022 | 156,758 | $1,568 | $6,539,147 | $(391,356) | $(2,722) | $(13,718) | $683,583 | $1,547,317 | $8,363,819 |
|---|
| Redemption of operating partnership units to common stock | 100 | 1 | 3,713 | — | — | — | (3,714) | — | — |
|---|
| Allocated net income for the period | — | — | — | 70,290 | — | — | 8,642 | 59,337 | 138,269 |
|---|
| Dividends/distributions declared | — | — | — | (461,209) | — | — | (55,038) | — | (516,247) |
|---|
| Shares issued pursuant to stock purchase plan | 19 | — | 1,156 | — | — | — | — | — | 1,156 |
|---|
| Net activity from stock option and incentive plan | 62 | — | 3,759 | — | — | — | 42,088 | — | 45,847 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | 30,190 | 30,190 |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (48,370) | (48,370) |
|---|
| Effective portion of interest rate contracts | — | — | — | — | — | 12,461 | 1,425 | — | 13,886 |
|---|
| Amortization of interest rate contracts | — | — | — | — | — | 4,123 | 471 | 432 | 5,026 |
|---|
| Reallocation of noncontrolling interest | — | — | 20,870 | — | — | — | (20,870) | — | — |
|---|
| Equity, September 30, 2023 | 156,939 | $1,569 | $6,568,645 | $(782,275) | $(2,722) | $2,866 | $656,587 | $1,588,906 | $8,033,576 |
|---|
| BXP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Cash flows from operating activities: |
|---|
| Net income | $322,005 | $138,269 |
|---|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|---|
| Depreciation and amortization | 661,148 | 618,746 |
|---|
| Impairment loss | 13,615 | — |
|---|
| Amortization of right of use assets - operating leases | 1,719 | 1,502 |
|---|
| Amortization of sales type lease | (738) | — |
|---|
| Amortization of above and below market leases | (4,245) | — |
|---|
| Non-cash compensation expense | 39,552 | 46,699 |
|---|
| (Income) loss from unconsolidated joint ventures | (6,376) | 261,793 |
|---|
| Distributions of net cash flow from operations of unconsolidated joint ventures | 27,332 | 21,871 |
|---|
| Gains from investments in securities | (4,785) | (2,311) |
|---|
| Allowance for current expected credit losses | 44 | 302 |
|---|
| Non-cash portion of interest expense | 25,575 | 22,541 |
|---|
| Gains on sales of real estate | (517) | (517) |
|---|
| Unrealized gain on non-real estate investment | (548) | (332) |
|---|
| Change in assets and liabilities: |
|---|
| Tenant and other receivables, net | 23,932 | (13,467) |
|---|
| Accrued rental income, net | (78,576) | (72,190) |
|---|
| Prepaid expenses and other assets | (73,215) | (76,621) |
|---|
| Right of use assets - operating lease | (750) | (25,640) |
|---|
| Lease liabilities - operating leases | (390) | 282 |
|---|
| Accounts payable and accrued expenses | 7,596 | 40,914 |
|---|
| Accrued interest payable | (12,383) | 24,648 |
|---|
| Other liabilities | (27,579) | (6,254) |
|---|
| Tenant leasing costs | (61,661) | (65,863) |
|---|
| Total adjustments | 528,750 | 776,103 |
|---|
| Net cash provided by operating activities | 850,755 | 914,372 |
|---|
| Cash flows from investing activities: |
|---|
| Construction in progress | (469,948) | (361,625) |
|---|
| Building and other capital improvements | (118,411) | (117,393) |
|---|
| Tenant improvements | (178,835) | (244,841) |
|---|
| Proceeds from sales of real estate | 517 | 517 |
|---|
| Acquisition of real estate (net of cash received upon consolidation) | 6,086 | — |
|---|
| Capital contributions to unconsolidated joint ventures | (87,498) | (148,875) |
|---|
| Capital distributions from unconsolidated joint ventures | — | 7,350 |
|---|
| Investment in non-real estate investments | (1,500) | (1,990) |
|---|
| Issuance of note receivables (including related party) | (2,223) | (10,500) |
|---|
| Investments in securities, net | 1,025 | 1,779 |
|---|
| Net cash used in investing activities | (850,787) | (875,578) |
|---|
| BXP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Cash flows from financing activities: |
|---|
| Repayments of mortgage notes payable | (3,461) | — |
|---|
| Proceeds from unsecured senior notes | 849,671 | 747,727 |
|---|
| Repayment / redemption of unsecured senior notes | (700,000) | (500,000) |
|---|
| Borrowings on unsecured term loans | — | 1,200,000 |
|---|
| Payments on finance lease obligations | (9,250) | — |
|---|
| Repayment of unsecured term loans | (500,000) | (730,000) |
|---|
| Borrowings on commercial paper program | 3,554,932 | — |
|---|
| Repayments on commercial paper program | (3,054,932) | — |
|---|
| Deferred financing costs | (10,892) | (12,639) |
|---|
| Net activity from equity transactions | (1,728) | 367 |
|---|
| Dividends and distributions | (517,361) | (514,974) |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | 304,323 | 12,671 |
|---|
| Distributions to noncontrolling interests in property partnerships | (52,353) | (48,370) |
|---|
| Net cash provided by (used in) financing activities | (141,051) | 154,782 |
|---|
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (141,083) | 193,576 |
|---|
| Cash and cash equivalents and cash held in escrows, beginning of period | 1,612,567 | 736,812 |
|---|
| Cash and cash equivalents and cash held in escrows, end of period | $1,471,484 | $930,388 |
|---|
| Reconciliation of cash and cash equivalents and cash held in escrows: |
|---|
| Cash and cash equivalents, beginning of period | $1,531,477 | $690,333 |
|---|
| Cash held in escrows, beginning of period | 81,090 | 46,479 |
|---|
| Cash and cash equivalents and cash held in escrows, beginning of period | $1,612,567 | $736,812 |
|---|
| Cash and cash equivalents, end of period | $1,420,475 | $882,647 |
|---|
| Cash held in escrows, end of period | 51,009 | 47,741 |
|---|
| Cash and cash equivalents and cash held in escrows, end of period | $1,471,484 | $930,388 |
|---|
| Supplemental disclosures: |
|---|
| Cash paid for interest (net of amounts capitalized) | $505,746 | $404,016 |
|---|
| Interest capitalized | $31,342 | $33,426 |
|---|
| Non-cash investing and financing activities: |
|---|
| Write-off of fully depreciated real estate | $(76,653) | $(111,154) |
|---|
| Change in real estate included in accounts payable and accrued expenses | $(21,035) | $29,435 |
|---|
| Right of use assets obtained in exchange for lease liabilities - operating lease | $30,631 | $134,509 |
|---|
| Lease liability - finance lease reversal for re-assessment event | $(38,491) | $— |
|---|
| Right of use asset - finance lease reversal for re-assessment event | $(28,962) | $— |
|---|
| Non-cash contributions from noncontrolling interests in property partnerships, net | $86,860 | $17,519 |
|---|
| Capitalized operating lease costs | $22,647 | $5,031 |
|---|
| Construction in progress from prepaid expenses and other assets | $— | $25,577 |
|---|
| Investment in unconsolidated joint ventures eliminated upon consolidation | $(11,834) | $— |
|---|
| Mortgage note payable recorded upon consolidation | $207,093 | $— |
|---|
| BXP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Mortgage note payable converted to unsecured term loan | $100,000 | $— |
|---|
| Real estate and intangibles recorded upon consolidation | $(220,015) | $— |
|---|
| Dividends and distributions declared but not paid | $172,191 | $171,916 |
|---|
| Conversions of noncontrolling interests to stockholders’ equity | $33,746 | $3,714 |
|---|
| Issuance of restricted securities to employees and non-employee directors | $43,360 | $48,121 |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for unit amounts) |
|---|
| September 30, 2024 | December 31, 2023 |
|---|
| ASSETS |
|---|
| Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,646,435 and $7,054,075 at September 30, 2024 and December 31, 2023, respectively) | $27,191,559 | $26,382,944 |
|---|
| Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at September 30, 2024 and December 31, 2023, respectively) | 372,896 | 401,680 |
|---|
| Right of use assets - operating leases (amounts related to VIEs of $145,052 and $158,885 at September 30, 2024 and December 31, 2023, respectively) | 339,804 | 324,298 |
|---|
| Less: accumulated depreciation (amounts related to VIEs of $(1,601,919) and $(1,501,483) at September 30, 2024 and December 31, 2023, respectively) | (7,241,074) | (6,758,361) |
|---|
| Total real estate | 20,663,185 | 20,350,561 |
|---|
| Cash and cash equivalents (amounts related to VIEs of $322,604 and $245,317 at September 30, 2024 and December 31, 2023, respectively) | 1,420,475 | 1,531,477 |
|---|
| Cash held in escrows (amounts related to VIEs of $5,032 and $22,160 at September 30, 2024 and December 31, 2023, respectively) | 51,009 | 81,090 |
|---|
| Investments in securities | 39,186 | 36,337 |
|---|
| Tenant and other receivables, net (amounts related to VIEs of $19,216 and $27,987 at September 30, 2024 and December 31, 2023, respectively) | 99,706 | 122,407 |
|---|
| Note receivable, net | 3,937 | 1,714 |
|---|
| Related party notes receivables, net | 88,788 | 88,779 |
|---|
| Sales-type lease receivable, net | 14,429 | 13,704 |
|---|
| Accrued rental income, net (amounts related to VIEs of $425,867 and $401,159 at September 30, 2024 and December 31, 2023, respectively) | 1,438,492 | 1,355,212 |
|---|
| Deferred charges, net (amounts related to VIEs of $201,947 and $175,383 at September 30, 2024 and December 31, 2023, respectively) | 794,571 | 760,421 |
|---|
| Prepaid expenses and other assets (amounts related to VIEs of $50,275 and $11,824 at September 30, 2024 and December 31, 2023, respectively) | 132,078 | 64,230 |
|---|
| Investments in unconsolidated joint ventures | 1,421,886 | 1,377,319 |
|---|
| Total assets | $26,167,742 | $25,783,251 |
|---|
| LIABILITIES AND CAPITAL |
|---|
| Liabilities: |
|---|
| Mortgage notes payable, net (amounts related to VIEs of $3,280,817 and $3,277,185 at September 30, 2024 and December 31, 2023, respectively) | $4,275,155 | $4,166,379 |
|---|
| Unsecured senior notes, net | 10,642,033 | 10,491,617 |
|---|
| Unsecured line of credit | — | — |
|---|
| Unsecured term loans, net | 798,058 | 1,198,301 |
|---|
| Unsecured commercial paper | 500,000 | — |
|---|
| Lease liabilities - finance leases (amounts related to VIEs of $20,897 and $20,794 at September 30, 2024 and December 31, 2023, respectively) | 373,260 | 417,961 |
|---|
| Lease liabilities - operating leases (amounts related to VIEs of $154,637 and $145,826 at September 30, 2024 and December 31, 2023, respectively) | 389,444 | 350,391 |
|---|
| Accounts payable and accrued expenses (amounts related to VIEs of $120,092 and $59,667 at September 30, 2024 and December 31, 2023, respectively) | 444,288 | 458,329 |
|---|
| Dividends and distributions payable | 172,191 | 171,176 |
|---|
| Accrued interest payable | 121,360 | 133,684 |
|---|
| Other liabilities (amounts related to VIEs of $89,876 and $115,275 at September 30, 2024 and December 31, 2023, respectively) | 407,441 | 445,947 |
|---|
| Total liabilities | 18,123,230 | 17,833,785 |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for unit amounts) |
|---|
| September 30, 2024 | December 31, 2023 |
|---|
| Commitments and contingencies (See Note 8) |
|---|
| Redeemable deferred stock units— 132,930 and 119,471 units outstanding at redemption value at September 30, 2024 and December 31, 2023, respectively | 10,696 | 8,383 |
|---|
| Noncontrolling interests: |
|---|
| Redeemable partnership units— 15,926,014 and 16,508,277 common units and 2,336,797 and 2,065,861 long term incentive units outstanding at redemption value at September 30, 2024 and December 31, 2023, respectively | 1,500,501 | 1,347,575 |
|---|
| Capital: |
|---|
| Boston Properties Limited Partnership partners’ capital— 1,762,427 and 1,755,150 general partner units and 156,217,471 and 155,185,716 limited partner units outstanding at September 30, 2024 and December 31, 2023, respectively | 4,685,471 | 4,973,951 |
|---|
| Accumulated other comprehensive loss | (26,428) | (21,147) |
|---|
| Total partners’ capital | 4,659,043 | 4,952,804 |
|---|
| Noncontrolling interests in property partnerships | 1,874,272 | 1,640,704 |
|---|
| Total capital | 6,533,315 | 6,593,508 |
|---|
| Total liabilities and capital | $26,167,742 | $25,783,251 |
|---|
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per unit amounts)
| Three months ended September 30, | Nine months ended September 30, |
|---|
| 2024 | 2023 | 2024 | 2023 |
|---|
| Revenue |
|---|
| Lease | $799,471 | $767,181 | $2,378,616 | $2,285,789 |
|---|
| Parking and other | 34,255 | 30,428 | 101,086 | 81,421 |
|---|
| Hotel | 15,082 | 13,484 | 38,080 | 35,554 |
|---|
| Development and management services | 6,770 | 9,284 | 19,276 | 28,122 |
|---|
| Direct reimbursements of payroll and related costs from management services contracts | 3,649 | 3,906 | 12,090 | 13,750 |
|---|
| Total revenue | 859,227 | 824,283 | 2,549,148 | 2,444,636 |
|---|
| Expenses |
|---|
| Operating |
|---|
| Rental | 327,897 | 300,192 | 963,480 | 882,536 |
|---|
| Hotel | 9,833 | 9,020 | 25,687 | 23,852 |
|---|
| General and administrative | 33,352 | 31,410 | 127,479 | 131,387 |
|---|
| Payroll and related costs from management services contracts | 3,649 | 3,906 | 12,090 | 13,750 |
|---|
| Transaction costs | 188 | 751 | 890 | 1,970 |
|---|
| Depreciation and amortization | 221,186 | 205,679 | 656,044 | 613,446 |
|---|
| Total expenses | 596,105 | 550,958 | 1,785,670 | 1,666,941 |
|---|
| Other income (expense) |
|---|
| Income (loss) from unconsolidated joint ventures | (7,011) | (247,556) | 6,376 | (261,793) |
|---|
| Gains on sales of real estate | 517 | 517 | 517 | 517 |
|---|
| Interest and other income (loss) | 14,430 | 20,715 | 39,747 | 48,999 |
|---|
| Gains (losses) from investments in securities | 2,198 | (925) | 4,785 | 2,311 |
|---|
| Unrealized gain (loss) on non-real estate investment | 94 | (51) | 548 | 332 |
|---|
| Impairment loss | — | — | (13,615) | — |
|---|
| Interest expense | (163,194) | (147,812) | (474,727) | (424,492) |
|---|
| Net income (loss) | 110,156 | (101,787) | 327,109 | 143,569 |
|---|
| Net income attributable to noncontrolling interests |
|---|
| Noncontrolling interests in property partnerships | (15,237) | (20,909) | (50,283) | (59,337) |
|---|
| Net income (loss) attributable to Boston Properties Limited Partnership | $94,919 | $(122,696) | $276,826 | $84,232 |
|---|
| Basic earnings per common unit attributable to Boston Properties Limited Partnership |
|---|
| Net income (loss) | $0.54 | $(0.70) | $1.58 | $0.48 |
|---|
| Weighted average number of common units outstanding | 175,446 | 174,882 | 175,369 | 174,765 |
|---|
| Diluted earnings per common unit attributable to Boston Properties Limited Partnership |
|---|
| Net income (loss) | $0.54 | $(0.70) | $1.58 | $0.48 |
|---|
| Weighted average number of common and common equivalent units outstanding | 175,934 | 174,882 | 175,666 | 175,105 |
|---|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| Three months ended September 30, | Nine months ended September 30, |
|---|
| 2024 | 2023 | 2024 | 2023 |
|---|
| Net income (loss) | $110,156 | $(101,787) | $327,109 | $143,569 |
|---|
| Other comprehensive income (loss): |
|---|
| Effective portion of interest rate contracts | (32,263) | 5,459 | (14,976) | 13,886 |
|---|
| Amortization of interest rate contracts (1) | 3,077 | 1,677 | 9,518 | 5,026 |
|---|
| Other comprehensive income (loss) | (29,186) | 7,136 | (5,458) | 18,912 |
|---|
| Comprehensive income (loss) | 80,970 | (94,651) | 321,651 | 162,481 |
|---|
| Comprehensive income attributable to noncontrolling interests | (15,381) | (21,053) | (50,715) | (59,769) |
|---|
| Comprehensive income (loss) attributable to Boston Properties Limited Partnership | $65,589 | $(115,704) | $270,936 | $102,712 |
|---|
(1)Amounts reclassified from comprehensive income primarily to interest expense within Boston Properties Limited Partnership’s Consolidated Statements of Operations.
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CAPITAL AND NONCONTROLLING INTERESTS(unaudited and in thousands) |
|---|
| Units · Capital |
|---|
| General Partner | Limited Partner | Partners’ Capital (General and Limited Partners) | AccumulatedOtherComprehensive Loss | NoncontrollingInterests - Property Partnerships | Total Capital | Noncontrolling Interests - Redeemable Partnership Units |
|---|
| Equity, June 30, 2024 | 1,762 | 155,336 | $5,010,460 | $(155) | $1,801,676 | $6,811,981 | $1,230,848 |
|---|
| Net activity from contributions and unearned compensation | — | 6 | (1,232) | — | — | (1,232) | 3,225 |
|---|
| Allocated net income for the period | — | — | 85,332 | — | 15,237 | 100,569 | 9,587 |
|---|
| Distributions | — | — | (154,820) | — | — | (154,820) | (17,986) |
|---|
| Conversion of redeemable partnership units | — | 875 | 30,992 | — | — | 30,992 | (30,992) |
|---|
| Adjustment to reflect redeemable partnership units at redemption value | — | — | (308,876) | — | — | (308,876) | 308,876 |
|---|
| Effective portion of interest rate contracts | — | — | — | (28,910) | — | (28,910) | (3,353) |
|---|
| Amortization of interest rate contracts | — | — | — | 2,637 | 144 | 2,781 | 296 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 23,615 | — | 72,109 | 95,724 | — |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (14,894) | (14,894) | — |
|---|
| Equity, September 30, 2024 | 1,762 | 156,217 | $4,685,471 | $(26,428) | $1,874,272 | $6,533,315 | $1,500,501 |
|---|
| Equity, June 30, 2023 | 1,755 | 155,098 | $5,351,166 | $(3,406) | $1,557,368 | $6,905,128 | $1,135,053 |
|---|
| Net activity from contributions and unearned compensation | — | 7 | 991 | — | — | 991 | 4,065 |
|---|
| Allocated net income (loss) for the period | — | — | (110,169) | — | 20,909 | (89,260) | (12,527) |
|---|
| Distributions | — | — | (153,800) | — | — | (153,800) | (18,301) |
|---|
| Conversion of redeemable partnership units | — | 79 | 2,920 | — | — | 2,920 | (2,920) |
|---|
| Adjustment to reflect redeemable partnership units at redemption value | — | — | (54,663) | — | — | (54,663) | 54,663 |
|---|
| Effective portion of interest rate contracts | — | — | — | 4,896 | — | 4,896 | 563 |
|---|
| Amortization of interest rate contracts | — | — | — | 1,376 | 144 | 1,520 | 157 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | — | — | 22,635 | 22,635 | — |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (12,150) | (12,150) | — |
|---|
| Equity, September 30, 2023 | 1,755 | 155,184 | $5,036,445 | $2,866 | $1,588,906 | $6,628,217 | $1,160,753 |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CAPITAL AND NONCONTROLLING INTERESTS(unaudited and in thousands) |
|---|
| Units · Capital |
|---|
| General Partner | Limited Partner | Partners’ Capital (General and Limited Partners) | AccumulatedOtherComprehensive Loss | NoncontrollingInterests - Property Partnerships | Total Capital | Noncontrolling Interests - Redeemable Partnership Units |
|---|
| Equity, December 31, 2023 | 1,755 | 155,185 | $4,973,951 | $(21,147) | $1,640,704 | $6,593,508 | $1,347,575 |
|---|
| Net activity from contributions and unearned compensation | 5 | 82 | 4,129 | — | — | 4,129 | 31,535 |
|---|
| Allocated net income for the period | — | — | 248,230 | — | 50,283 | 298,513 | 28,596 |
|---|
| Distributions | — | — | (462,684) | — | — | (462,684) | (55,692) |
|---|
| Conversion of redeemable partnership units | 2 | 950 | 33,746 | — | — | 33,746 | (33,746) |
|---|
| Adjustment to reflect redeemable partnership units at redemption value | — | — | (182,842) | — | — | (182,842) | 182,842 |
|---|
| Effective portion of interest rate contracts | — | — | — | (13,429) | — | (13,429) | (1,547) |
|---|
| Amortization of interest rate contracts | — | — | — | 8,148 | 432 | 8,580 | 938 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 70,941 | — | 235,206 | 306,147 | — |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (52,353) | (52,353) | — |
|---|
| Equity, September 30, 2024 | 1,762 | 156,217 | $4,685,471 | $(26,428) | $1,874,272 | $6,533,315 | $1,500,501 |
|---|
| Equity, December 31, 2022 | 1,750 | 155,008 | $5,299,428 | $(13,718) | $1,547,317 | $6,833,027 | $1,280,886 |
|---|
| Net activity from contributions and unearned compensation | 5 | 76 | 4,913 | — | — | 4,913 | 42,090 |
|---|
| Allocated net income for the period | — | — | 75,590 | — | 59,337 | 134,927 | 8,642 |
|---|
| Distributions | — | — | (461,209) | — | — | (461,209) | (55,038) |
|---|
| Conversion of redeemable partnership units | — | 100 | 3,714 | — | — | 3,714 | (3,714) |
|---|
| Adjustment to reflect redeemable partnership units at redemption value | — | — | 114,009 | — | — | 114,009 | (114,009) |
|---|
| Effective portion of interest rate contracts | — | — | — | 12,461 | — | 12,461 | 1,425 |
|---|
| Amortization of interest rate contracts | — | — | — | 4,123 | 432 | 4,555 | 471 |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | — | — | 30,190 | 30,190 | — |
|---|
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (48,370) | (48,370) | — |
|---|
| Equity, September 30, 2023 | 1,755 | 155,184 | $5,036,445 | $2,866 | $1,588,906 | $6,628,217 | $1,160,753 |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Cash flows from operating activities: |
|---|
| Net income | $327,109 | $143,569 |
|---|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|---|
| Depreciation and amortization | 656,044 | 613,446 |
|---|
| Impairment loss | 13,615 | — |
|---|
| Amortization of right of use assets - operating leases | 1,719 | 1,502 |
|---|
| Amortization of sales type lease | (738) | — |
|---|
| Amortization of above and below market leases | (4,245) | — |
|---|
| Non-cash compensation expense | 39,552 | 46,699 |
|---|
| (Income) loss from unconsolidated joint ventures | (6,376) | 261,793 |
|---|
| Distributions of net cash flow from operations of unconsolidated joint ventures | 27,332 | 21,871 |
|---|
| Gains from investments in securities | (4,785) | (2,311) |
|---|
| Allowance for current expected credit losses | 44 | 302 |
|---|
| Non-cash portion of interest expense | 25,575 | 22,541 |
|---|
| Gains on sales of real estate | (517) | (517) |
|---|
| Unrealized gain on non-real estate investment | (548) | (332) |
|---|
| Change in assets and liabilities: |
|---|
| Tenant and other receivables, net | 23,932 | (13,467) |
|---|
| Accrued rental income, net | (78,576) | (72,190) |
|---|
| Prepaid expenses and other assets | (73,215) | (76,621) |
|---|
| Right of use assets - operating lease | (750) | (25,640) |
|---|
| Lease liabilities - operating leases | (390) | 282 |
|---|
| Accounts payable and accrued expenses | 7,596 | 40,914 |
|---|
| Accrued interest payable | (12,383) | 24,648 |
|---|
| Other liabilities | (27,579) | (6,254) |
|---|
| Tenant leasing costs | (61,661) | (65,863) |
|---|
| Total adjustments | 523,646 | 770,803 |
|---|
| Net cash provided by operating activities | 850,755 | 914,372 |
|---|
| Cash flows from investing activities: |
|---|
| Construction in progress | (469,948) | (361,625) |
|---|
| Building and other capital improvements | (118,411) | (117,393) |
|---|
| Tenant improvements | (178,835) | (244,841) |
|---|
| Proceeds from sales of real estate | 517 | 517 |
|---|
| Acquisition of real estate (net of cash received upon consolidation) | 6,086 | — |
|---|
| Capital contributions to unconsolidated joint ventures | (87,498) | (148,875) |
|---|
| Capital distributions from unconsolidated joint ventures | — | 7,350 |
|---|
| Investment in non-real estate investments | (1,500) | (1,990) |
|---|
| Issuance of note receivables (including related party) | (2,223) | (10,500) |
|---|
| Investments in securities, net | 1,025 | 1,779 |
|---|
| Net cash used in investing activities | (850,787) | (875,578) |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Cash flows from financing activities: |
|---|
| Repayments of mortgage notes payable | (3,461) | — |
|---|
| Proceeds from unsecured senior notes | 849,671 | 747,727 |
|---|
| Repayment / redemption of unsecured senior notes | (700,000) | (500,000) |
|---|
| Borrowings on unsecured term loan | — | 1,200,000 |
|---|
| Payments on finance lease obligations | (9,250) | — |
|---|
| Repayment of unsecured term loan | (500,000) | (730,000) |
|---|
| Borrowings on commercial paper program | 3,554,932 | — |
|---|
| Repayments on commercial paper program | (3,054,932) | — |
|---|
| Deferred financing costs | (10,892) | (12,639) |
|---|
| Net activity from equity transactions | (1,728) | 367 |
|---|
| Distributions | (517,361) | (514,974) |
|---|
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | 304,323 | 12,671 |
|---|
| Distributions to noncontrolling interests in property partnerships | (52,353) | (48,370) |
|---|
| Net cash provided by (used in) financing activities | (141,051) | 154,782 |
|---|
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (141,083) | 193,576 |
|---|
| Cash and cash equivalents and cash held in escrows, beginning of period | 1,612,567 | 736,812 |
|---|
| Cash and cash equivalents and cash held in escrows, end of period | $1,471,484 | $930,388 |
|---|
| Reconciliation of cash and cash equivalents and cash held in escrows: |
|---|
| Cash and cash equivalents, beginning of period | $1,531,477 | $690,333 |
|---|
| Cash held in escrows, beginning of period | 81,090 | 46,479 |
|---|
| Cash and cash equivalents and cash held in escrows, beginning of period | $1,612,567 | $736,812 |
|---|
| Cash and cash equivalents, end of period | $1,420,475 | $882,647 |
|---|
| Cash held in escrows, end of period | 51,009 | 47,741 |
|---|
| Cash and cash equivalents and cash held in escrows, end of period | $1,471,484 | $930,388 |
|---|
| Supplemental disclosures: |
|---|
| Cash paid for interest (net of amounts capitalized) | $505,746 | $404,016 |
|---|
| Interest capitalized | $31,342 | $33,426 |
|---|
| Non-cash investing and financing activities: |
|---|
| Write-off of fully depreciated real estate | $(76,653) | $(109,905) |
|---|
| Change in real estate included in accounts payable and accrued expenses | $(21,035) | $29,435 |
|---|
| Right of use assets obtained in exchange for lease liabilities - operating lease | $30,631 | $134,509 |
|---|
| Lease liability - finance lease reversal for re-assessment event | $(38,491) | $— |
|---|
| Right of use asset - finance lease reversal for re-assessment event | $(28,962) | $— |
|---|
| Non-cash contributions from noncontrolling interests in property partnerships, net | $86,860 | $17,519 |
|---|
| Capitalized operating lease costs | $22,647 | $5,031 |
|---|
| Construction in progress from prepaid expenses and other assets | $— | $25,577 |
|---|
| Investment in unconsolidated joint ventures eliminated upon consolidation | $(11,834) | $— |
|---|
| Mortgage notes payable recorded upon consolidation | $207,093 | $— |
|---|
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) |
|---|
| Nine months ended September 30, |
|---|
| 2024 | 2023 |
|---|
| Mortgage note payable converted to unsecured term loan | $100,000 | $— |
|---|
| Real estate and intangibles recorded upon consolidation | $(220,015) | $— |
|---|
| Distributions declared but not paid | $172,191 | $171,916 |
|---|
| Conversions of redeemable partnership units to partners’ capital | $33,746 | $3,714 |
|---|
| Issuance of restricted securities to employees and non-employee directors | $43,360 | $48,121 |
|---|
