BXP Inc
For the period ended Jun 30, 2024. Filed Aug 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 5, 2024
BXP$63.54-4.0%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Item 1. Financial Statements (unaudited)
| BXP, INC.CONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for share and par value amounts) | ||
|---|---|---|
| June 30, 2024 | December 31, 2023 | |
| ASSETS | ||
| Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,490,887 and $7,054,075 at June 30, 2024 and December 31, 2023, respectively) | $27,273,494 | $26,749,209 |
| Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at June 30, 2024 and December 31, 2023, respectively) | 372,896 | 401,680 |
| Right of use assets - operating leases (amounts related to VIEs of $149,605 and $158,885 at June 30, 2024 and December 31, 2023, respectively) | 344,292 | 324,298 |
| Less: accumulated depreciation (amounts related to VIEs of $(1,570,934) and $(1,501,483) at June 30, 2024 and December 31, 2023, respectively) | (7,198,566) | (6,881,728) |
| Total real estate | 20,792,116 | 20,593,459 |
| Cash and cash equivalents (amounts related to VIEs of $378,992 and $245,317 at June 30, 2024 and December 31, 2023, respectively) | 685,376 | 1,531,477 |
| Cash held in escrows (amounts related to VIEs of $6,805 and $22,160 at June 30, 2024 and December 31, 2023, respectively) | 52,125 | 81,090 |
| Investments in securities | 36,844 | 36,337 |
| Tenant and other receivables, net (amounts related to VIEs of $17,481 and $27,987 at June 30, 2024 and December 31, 2023, respectively) | 82,145 | 122,407 |
| Note receivable, net | 3,155 | 1,714 |
| Related party note receivable, net | 88,779 | 88,779 |
| Sales-type lease receivable, net | 14,182 | 13,704 |
| Accrued rental income, net (amounts related to VIEs of $416,840 and $401,159 at June 30, 2024 and December 31, 2023, respectively) | 1,414,622 | 1,355,212 |
| Deferred charges, net (amounts related to VIEs of $193,650 and $175,383 at June 30, 2024 and December 31, 2023, respectively) | 800,099 | 760,421 |
| Prepaid expenses and other assets (amounts related to VIEs of $14,753 and $11,824 at June 30, 2024 and December 31, 2023, respectively) | 86,188 | 64,230 |
| Investments in unconsolidated joint ventures | 1,418,817 | 1,377,319 |
| Total assets | $25,474,448 | $26,026,149 |
| LIABILITIES AND EQUITY | ||
| Liabilities: | ||
| Mortgage notes payable, net (amounts related to VIEs of $3,279,606 and $3,277,185 at June 30, 2024 and December 31, 2023, respectively) | $4,371,478 | $4,166,379 |
| Unsecured senior notes, net | 9,797,220 | 10,491,617 |
| Unsecured line of credit | — | — |
| Unsecured term loan, net | 698,776 | 1,198,301 |
| Unsecured commercial paper | 500,000 | — |
| Lease liabilities - finance leases (amounts related to VIEs of $20,864 and $20,794 at June 30, 2024 and December 31, 2023, respectively) | 375,601 | 417,961 |
| Lease liabilities - operating leases (amounts related to VIEs of $151,643 and $145,826 at June 30, 2024 and December 31, 2023, respectively) | 385,842 | 350,391 |
| Accounts payable and accrued expenses (amounts related to VIEs of $103,662 and $59,667 at June 30, 2024 and December 31, 2023, respectively) | 372,484 | 458,329 |
| Dividends and distributions payable | 172,172 | 171,176 |
| Accrued interest payable | 112,107 | 133,684 |
| Other liabilities (amounts related to VIEs of $95,202 and $115,275 at June 30, 2024 and December 31, 2023, respectively) | 398,525 | 445,947 |
| Total liabilities | 17,184,205 | 17,833,785 |
| BXP, INC.CONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for share and par value amounts) | ||
|---|---|---|
| June 30, 2024 | December 31, 2023 | |
| Commitments and contingencies (See Note 8) | ||
| Redeemable deferred stock units— 128,584 and 119,471 units outstanding at redemption value at June 30, 2024 and December 31, 2023, respectively | 7,916 | 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, 157,176,741 and 157,019,766 issued and 157,097,841 and 156,940,866 outstanding at June 30, 2024 and December 31, 2023, respectively | 1,571 | 1,569 |
| Additional paid-in capital | 6,768,686 | 6,715,149 |
| Dividends in excess of earnings | (964,518) | (816,152) |
| Treasury common stock at cost, 78,900 shares at June 30, 2024 and December 31, 2023 | (2,722) | (2,722) |
| Accumulated other comprehensive loss | (155) | (21,147) |
| Total stockholders’ equity attributable to BXP, Inc. | 5,802,862 | 5,876,697 |
| Noncontrolling interests: | ||
| Common units of Boston Properties Limited Partnership | 677,789 | 666,580 |
| Property partnerships | 1,801,676 | 1,640,704 |
| Total equity | 8,282,327 | 8,183,981 |
| Total liabilities and equity | $25,474,448 | $26,026,149 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per share amounts)
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenue | ||||
| Lease | $790,555 | $761,733 | $1,579,145 | $1,518,608 |
| Parking and other | 34,615 | 26,984 | 66,831 | 50,993 |
| Hotel | 14,812 | 13,969 | 22,998 | 22,070 |
| Development and management services | 6,352 | 9,858 | 12,506 | 18,838 |
| Direct reimbursements of payroll and related costs from management services contracts | 4,148 | 4,609 | 8,441 | 9,844 |
| Total revenue | 850,482 | 817,153 | 1,689,921 | 1,620,353 |
| Expenses | ||||
| Operating | ||||
| Rental | 321,426 | 291,036 | 635,583 | 582,344 |
| Hotel | 9,839 | 8,161 | 15,854 | 14,832 |
| General and administrative | 44,109 | 44,175 | 94,127 | 99,977 |
| Payroll and related costs from management services contracts | 4,148 | 4,609 | 8,441 | 9,844 |
| Transaction costs | 189 | 308 | 702 | 1,219 |
| Depreciation and amortization | 219,542 | 202,577 | 438,258 | 411,311 |
| Total expenses | 599,253 | 550,866 | 1,192,965 | 1,119,527 |
| Other income (expense) | ||||
| Income (loss) from unconsolidated joint ventures | (5,799) | (6,668) | 13,387 | (14,237) |
| Interest and other income (loss) | 10,788 | 17,343 | 25,317 | 28,284 |
| Gains from investments in securities | 315 | 1,571 | 2,587 | 3,236 |
| Unrealized gain on non-real estate investment | 58 | 124 | 454 | 383 |
| Impairment loss | — | — | (13,615) | — |
| Interest expense | (149,642) | (142,473) | (311,533) | (276,680) |
| Net income | 106,949 | 136,184 | 213,553 | 241,812 |
| Net income attributable to noncontrolling interests | ||||
| Noncontrolling interests in property partnerships | (17,825) | (19,768) | (35,046) | (38,428) |
| Noncontrolling interest—common units of the Operating Partnership | (9,509) | (12,117) | (19,009) | (21,169) |
| Net income attributable to BXP, Inc. | $79,615 | $104,299 | 159,498 | 182,215 |
| Basic earnings per common share attributable to BXP, Inc. | ||||
| Net income | $0.51 | $0.67 | $1.02 | $1.16 |
| Weighted average number of common shares outstanding | 157,039 | 156,826 | 157,011 | 156,815 |
| Diluted earnings per common share attributable to BXP, Inc. | ||||
| Net income | $0.51 | $0.66 | $1.01 | $1.16 |
| Weighted average number of common and common equivalent shares outstanding | 157,291 | 157,218 | 157,210 | 157,131 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income | $106,949 | $136,184 | $213,553 | $241,812 |
| Other comprehensive income: | ||||
| Effective portion of interest rate contracts | 936 | 14,965 | 17,287 | 8,427 |
| Amortization of interest rate contracts (1) | 3,081 | 1,674 | 6,441 | 3,349 |
| Other comprehensive income | 4,017 | 16,639 | 23,728 | 11,776 |
| Comprehensive income | 110,966 | 152,823 | 237,281 | 253,588 |
| Net income attributable to noncontrolling interests | (27,334) | (31,885) | (54,055) | (59,597) |
| Other comprehensive income attributable to noncontrolling interests | (552) | (1,831) | (2,736) | (1,463) |
| Comprehensive income attributable to BXP, Inc. | $83,080 | $119,107 | $180,490 | $192,528 |
(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, March 31, 2024 | 157,049 | $1,570 | $6,752,648 | $(890,177) | $(2,722) | $(3,620) | $684,969 | $1,734,904 | $8,277,572 |
| Redemption of operating partnership units to common stock | 41 | 1 | 1,450 | — | — | — | (1,451) | — | — |
| Allocated net income for the period | — | — | — | 79,615 | — | — | 9,509 | 17,825 | 106,949 |
| Dividends/distributions declared | — | — | — | (153,956) | — | — | (18,842) | — | (172,798) |
| Net activity from stock option and incentive plan | 8 | — | 2,499 | — | — | — | 14,041 | — | 16,540 |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 1,244 | — | — | — | — | 66,237 | 67,481 |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (17,434) | (17,434) |
| Effective portion of interest rate contracts | — | — | — | — | — | 835 | 101 | — | 936 |
| Amortization of interest rate contracts | — | — | — | — | — | 2,630 | 307 | 144 | 3,081 |
| Reallocation of noncontrolling interest | — | — | 10,845 | — | — | — | (10,845) | — | — |
| Equity, June 30, 2024 | 157,098 | $1,571 | $6,768,686 | $(964,518) | $(2,722) | $(155) | $677,789 | $1,801,676 | $8,282,327 |
| Equity, March 31, 2023 | 156,830 | $1,568 | $6,549,314 | $(467,159) | $(2,722) | $(18,214) | $691,627 | $1,552,070 | $8,306,484 |
| Redemption of operating partnership units to common stock | 16 | 1 | 598 | — | — | — | (599) | — | — |
| Allocated net income for the period | — | — | — | 104,325 | — | — | 12,091 | 19,768 | 136,184 |
| Dividends/distributions declared | — | — | — | (153,716) | — | — | (18,376) | — | (172,092) |
| Net activity from stock option and incentive plan | 8 | — | (110) | — | — | — | 14,052 | — | 13,942 |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (14,614) | (14,614) |
| Effective portion of interest rate contracts | — | — | — | — | — | 13,435 | 1,530 | — | 14,965 |
| Amortization of interest rate contracts | — | — | — | — | — | 1,373 | 157 | 144 | 1,674 |
| Reallocation of noncontrolling interest | — | — | 11,359 | — | — | — | (11,359) | — | — |
| 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 |
| 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 | 77 | 2 | 2,752 | — | — | — | (2,754) | — | — |
| Allocated net income for the period | — | — | — | 159,498 | — | — | 19,009 | 35,046 | 213,553 |
| Dividends/distributions declared | — | — | — | (307,864) | — | — | (37,706) | — | (345,570) |
| Shares issued pursuant to stock purchase plan | 8 | — | 600 | — | — | — | — | — | 600 |
| Net activity from stock option and incentive plan | 72 | — | 4,761 | — | — | — | 28,310 | — | 33,071 |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 47,326 | — | — | — | — | 163,097 | 210,423 |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (37,459) | (37,459) |
| Effective portion of interest rate contracts | — | — | — | — | — | 15,481 | 1,806 | — | 17,287 |
| Amortization of interest rate contracts | — | — | — | — | — | 5,511 | 642 | 288 | 6,441 |
| Reallocation of noncontrolling interest | — | — | (1,902) | — | — | — | 1,902 | — | — |
| Equity, June 30, 2024 | 157,098 | $1,571 | $6,768,686 | $(964,518) | $(2,722) | $(155) | $677,789 | $1,801,676 | $8,282,327 |
| 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 | 21 | 1 | 793 | — | — | — | (794) | — | — |
| Allocated net income for the period | — | — | — | 182,215 | — | — | 21,169 | 38,428 | 241,812 |
| Dividends/distributions declared | — | — | — | (307,409) | — | — | (36,737) | — | (344,146) |
| Shares issued pursuant to stock purchase plan | 9 | — | 586 | — | — | — | — | — | 586 |
| Net activity from stock option and incentive plan | 66 | — | 3,338 | — | — | — | 38,023 | — | 41,361 |
| Contributions from noncontrolling interests in property partnerships | — | — | — | — | — | — | — | 7,555 | 7,555 |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | — | — | — | (36,220) | (36,220) |
| Effective portion of interest rate contracts | — | — | — | — | — | 7,565 | 862 | — | 8,427 |
| Amortization of interest rate contracts | — | — | — | — | — | 2,747 | 314 | 288 | 3,349 |
| Reallocation of noncontrolling interest | — | — | 17,297 | — | — | — | (17,297) | — | — |
| 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 |
| BXP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) | ||
|---|---|---|
| Six months ended June 30, | ||
| 2024 | 2023 | |
| Cash flows from operating activities: | ||
| Net income | $213,553 | $241,812 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 438,258 | 411,311 |
| Impairment loss | 13,615 | — |
| Amortization of right of use assets - operating leases | 1,785 | 929 |
| Amortization of sales type lease | (488) | — |
| Amortization of above and below market leases | (2,947) | — |
| Non-cash compensation expense | 35,187 | 41,524 |
| (Income) loss from unconsolidated joint ventures | (13,387) | 14,237 |
| Distributions of net cash flow from operations of unconsolidated joint ventures | 21,153 | 11,437 |
| Gains from investments in securities | (2,587) | (3,236) |
| Allowance for current expected credit losses (gains) | 36 | 264 |
| Non-cash portion of interest expense | 14,172 | 14,940 |
| Unrealized gain on non-real estate investment | (454) | (383) |
| Change in assets and liabilities: | ||
| Tenant and other receivables, net | 39,743 | 3,721 |
| Accrued rental income, net | (52,590) | (42,965) |
| Prepaid expenses and other assets | (16,985) | (24,758) |
| Right of use assets - operating lease | (750) | — |
| Lease liabilities - operating leases | (997) | 140 |
| Accounts payable and accrued expenses | (24,650) | 6,320 |
| Accrued interest payable | (21,637) | 7,314 |
| Other liabilities | (32,922) | (21,773) |
| Tenant leasing costs | (42,449) | (47,651) |
| Total adjustments | 351,106 | 371,371 |
| Net cash provided by operating activities | 564,659 | 613,183 |
| Cash flows from investing activities: | ||
| Construction in progress | (313,602) | (235,331) |
| Building and other capital improvements | (66,799) | (78,344) |
| Tenant improvements | (117,848) | (135,743) |
| Acquisition of real estate (net of cash received upon consolidation) | 6,086 | — |
| Capital contributions to unconsolidated joint ventures | (60,461) | (103,595) |
| Capital distributions from unconsolidated joint ventures | — | 7,350 |
| Investment in non-real estate investments | (625) | (733) |
| Issuance of note receivables (including related party) | (1,423) | (10,500) |
| Investments in securities, net | 1,168 | 2,032 |
| Net cash used in investing activities | (553,504) | (554,864) |
| Cash flows from financing activities: | ||
| Repayments of mortgage notes payable | (2,019) | — |
| Proceeds from unsecured senior notes | — | 747,727 |
| Repayment / redemption of unsecured senior notes | (700,000) | — |
| Borrowings on unsecured term loan | — | 1,200,000 |
| Payments on finance lease obligations | (5,999) | — |
| BXP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) | ||
|---|---|---|
| Six months ended June 30, | ||
| 2024 | 2023 | |
| Repayment of unsecured term loan | (500,000) | (730,000) |
| Borrowings on commercial paper program | 1,859,075 | — |
| Repayments on commercial paper program | (1,359,075) | — |
| Deferred financing costs | (2,633) | (12,339) |
| Net activity from equity transactions | (2,136) | (39) |
| Dividends and distributions | (344,574) | (343,325) |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | 208,599 | 7,555 |
| Distributions to noncontrolling interests in property partnerships | (37,459) | (36,220) |
| Net cash provided by (used in) financing activities | (886,221) | 833,359 |
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (875,066) | 891,678 |
| 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 | $737,501 | $1,628,490 |
| 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 | $685,376 | $1,581,575 |
| Cash held in escrows, end of period | 52,125 | 46,915 |
| Cash and cash equivalents and cash held in escrows, end of period | $737,501 | $1,628,490 |
| Supplemental disclosures: | ||
| Cash paid for interest (net of amounts capitalized) | $342,409 | $273,214 |
| Interest capitalized | $19,717 | $21,153 |
| Non-cash investing and financing activities: | ||
| Write-off of fully depreciated real estate | $(57,999) | $(85,878) |
| Change in real estate included in accounts payable and accrued expenses | $(48,896) | $25,562 |
| Right of use assets obtained in exchange for lease liabilities - operating lease | $30,631 | $— |
| 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 distributions to noncontrolling interests in property partnerships, net | $60,410 | $— |
| Capitalized operating lease costs | $15,098 | $— |
| Investment in unconsolidated joint ventures eliminated upon consolidation | $(11,834) | $— |
| Mortgage note payable recorded upon consolidation | $207,093 | $— |
| Real estate and intangibles recorded upon consolidation | $(220,015) | $— |
| Dividends and distributions declared but not paid | $172,172 | $171,465 |
| Conversions of noncontrolling interests to stockholders’ equity | $2,754 | $794 |
| Issuance of restricted securities to employees and non-employee directors | $43,366 | $47,885 |
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for unit amounts) | ||
|---|---|---|
| June 30, 2024 | December 31, 2023 | |
| ASSETS | ||
| Real estate, at cost (amounts related to variable interest entities (“VIEs”) of $7,490,887 and $7,054,075 at June 30, 2024 and December 31, 2023, respectively) | $26,907,229 | $26,382,944 |
| Right of use assets - finance leases (amounts related to VIEs of $21,000 and $21,000 at June 30, 2024 and December 31, 2023, respectively) | 372,896 | 401,680 |
| Right of use assets - operating leases (amounts related to VIEs of $149,605 and $158,885 at June 30, 2024 and December 31, 2023, respectively) | 344,292 | 324,298 |
| Less: accumulated depreciation (amounts related to VIEs of $(1,570,934) and $(1,501,483) at June 30, 2024 and December 31, 2023, respectively) | (7,071,799) | (6,758,361) |
| Total real estate | 20,552,618 | 20,350,561 |
| Cash and cash equivalents (amounts related to VIEs of $378,992 and $245,317 at June 30, 2024 and December 31, 2023, respectively) | 685,376 | 1,531,477 |
| Cash held in escrows (amounts related to VIEs of $6,805 and $22,160 at June 30, 2024 and December 31, 2023, respectively) | 52,125 | 81,090 |
| Investments in securities | 36,844 | 36,337 |
| Tenant and other receivables, net (amounts related to VIEs of $17,481 and $27,987 at June 30, 2024 and December 31, 2023, respectively) | 82,145 | 122,407 |
| Note receivable, net | 3,155 | 1,714 |
| Related party note receivable, net | 88,779 | 88,779 |
| Sales-type lease receivable, net | 14,182 | 13,704 |
| Accrued rental income, net (amounts related to VIEs of $416,840 and $401,159 at June 30, 2024 and December 31, 2023, respectively) | 1,414,622 | 1,355,212 |
| Deferred charges, net (amounts related to VIEs of $193,650 and $175,383 at June 30, 2024 and December 31, 2023, respectively) | 800,099 | 760,421 |
| Prepaid expenses and other assets (amounts related to VIEs of $14,753 and $11,824 at June 30, 2024 and December 31, 2023, respectively) | 86,188 | 64,230 |
| Investments in unconsolidated joint ventures | 1,418,817 | 1,377,319 |
| Total assets | $25,234,950 | $25,783,251 |
| LIABILITIES AND CAPITAL | ||
| Liabilities: | ||
| Mortgage notes payable, net (amounts related to VIEs of $3,279,606 and $3,277,185 at June 30, 2024 and December 31, 2023, respectively) | $4,371,478 | $4,166,379 |
| Unsecured senior notes, net | 9,797,220 | 10,491,617 |
| Unsecured line of credit | — | — |
| Unsecured term loan, net | 698,776 | 1,198,301 |
| Unsecured commercial paper | 500,000 | — |
| Lease liabilities - finance leases (amounts related to VIEs of $20,864 and $20,794 at June 30, 2024 and December 31, 2023, respectively) | 375,601 | 417,961 |
| Lease liabilities - operating leases (amounts related to VIEs of $151,643 and $145,826 at June 30, 2024 and December 31, 2023, respectively) | 385,842 | 350,391 |
| Accounts payable and accrued expenses (amounts related to VIEs of $103,662 and $59,667 at June 30, 2024 and December 31, 2023, respectively) | 372,484 | 458,329 |
| Dividends and distributions payable | 172,172 | 171,176 |
| Accrued interest payable | 112,107 | 133,684 |
| Other liabilities (amounts related to VIEs of $95,202 and $115,275 at June 30, 2024 and December 31, 2023, respectively) | 398,525 | 445,947 |
| Total liabilities | 17,184,205 | 17,833,785 |
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED BALANCE SHEETS(unaudited and in thousands, except for unit amounts) | ||
|---|---|---|
| June 30, 2024 | December 31, 2023 | |
| Commitments and contingencies (See Note 8) | ||
| Redeemable deferred stock units— 128,584 and 119,471 units outstanding at redemption value at June 30, 2024 and December 31, 2023, respectively | 7,916 | 8,383 |
| Noncontrolling interests: | ||
| Redeemable partnership units— 16,454,712 and 16,508,277 common units and 2,681,580 and 2,065,861 long term incentive units outstanding at redemption value at June 30, 2024 and December 31, 2023, respectively | 1,230,848 | 1,347,575 |
| Capital: | ||
| Boston Properties Limited Partnership partners’ capital— 1,762,341 and 1,755,150 general partner units and 155,335,500 and 155,185,716 limited partner units outstanding at June 30, 2024 and December 31, 2023, respectively | 5,010,460 | 4,973,951 |
| Accumulated other comprehensive loss | (155) | (21,147) |
| Total partners’ capital | 5,010,305 | 4,952,804 |
| Noncontrolling interests in property partnerships | 1,801,676 | 1,640,704 |
| Total capital | 6,811,981 | 6,593,508 |
| Total liabilities and capital | $25,234,950 | $25,783,251 |
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except for per unit amounts)
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Revenue | ||||
| Lease | $790,555 | $761,733 | $1,579,145 | $1,518,608 |
| Parking and other | 34,615 | 26,984 | 66,831 | 50,993 |
| Hotel | 14,812 | 13,969 | 22,998 | 22,070 |
| Development and management services | 6,352 | 9,858 | 12,506 | 18,838 |
| Direct reimbursements of payroll and related costs from management services contracts | 4,148 | 4,609 | 8,441 | 9,844 |
| Total revenue | 850,482 | 817,153 | 1,689,921 | 1,620,353 |
| Expenses | ||||
| Operating | ||||
| Rental | 321,426 | 291,036 | 635,583 | 582,344 |
| Hotel | 9,839 | 8,161 | 15,854 | 14,832 |
| General and administrative | 44,109 | 44,175 | 94,127 | 99,977 |
| Payroll and related costs from management services contracts | 4,148 | 4,609 | 8,441 | 9,844 |
| Transaction costs | 189 | 308 | 702 | 1,219 |
| Depreciation and amortization | 217,839 | 200,895 | 434,858 | 407,767 |
| Total expenses | 597,550 | 549,184 | 1,189,565 | 1,115,983 |
| Other income (expense) | ||||
| Income (loss) from unconsolidated joint ventures | (5,799) | (6,668) | 13,387 | (14,237) |
| Interest and other income (loss) | 10,788 | 17,343 | 25,317 | 28,284 |
| Gains from investments in securities | 315 | 1,571 | 2,587 | 3,236 |
| Unrealized gain on non-real estate investment | 58 | 124 | 454 | 383 |
| Impairment loss | — | — | (13,615) | — |
| Interest expense | (149,642) | (142,473) | (311,533) | (276,680) |
| Net income | 108,652 | 137,866 | 216,953 | 245,356 |
| Net income attributable to noncontrolling interests | ||||
| Noncontrolling interests in property partnerships | (17,825) | (19,768) | (35,046) | (38,428) |
| Net income attributable to Boston Properties Limited Partnership | $90,827 | $118,098 | $181,907 | $206,928 |
| Basic earnings per common unit attributable to Boston Properties Limited Partnership | ||||
| Net income | $0.52 | $0.68 | $1.04 | $1.18 |
| Weighted average number of common units outstanding | 175,408 | 174,748 | 175,332 | 174,693 |
| Diluted earnings per common unit attributable to Boston Properties Limited Partnership | ||||
| Net income | $0.52 | $0.67 | $1.04 | $1.18 |
| Weighted average number of common and common equivalent units outstanding | 175,660 | 175,140 | 175,531 | 175,009 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited and in thousands)
| Three months ended June 30, | Six months ended June 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net income | $108,652 | $137,866 | $216,953 | $245,356 |
| Other comprehensive income: | ||||
| Effective portion of interest rate contracts | 936 | 14,965 | 17,287 | 8,427 |
| Amortization of interest rate contracts (1) | 3,081 | 1,674 | 6,441 | 3,349 |
| Other comprehensive income | 4,017 | 16,639 | 23,728 | 11,776 |
| Comprehensive income | 112,669 | 154,505 | 240,681 | 257,132 |
| Comprehensive income attributable to noncontrolling interests | (17,969) | (19,912) | (35,334) | (38,716) |
| Comprehensive income attributable to Boston Properties Limited Partnership | $94,700 | $134,593 | $205,347 | $218,416 |
(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, March 31, 2024 | 1,762 | 155,287 | $5,004,678 | $(3,620) | $1,734,904 | $6,735,962 | $1,300,409 |
| Net activity from contributions and unearned compensation | — | 8 | 2,499 | — | — | 2,499 | 14,041 |
| Allocated net income for the period | — | — | 81,318 | — | 17,825 | 99,143 | 9,509 |
| Distributions | — | — | (153,956) | — | — | (153,956) | (18,842) |
| Conversion of redeemable partnership units | — | 41 | 1,451 | — | — | 1,451 | (1,451) |
| Adjustment to reflect redeemable partnership units at redemption value | — | — | 73,226 | — | — | 73,226 | (73,226) |
| Effective portion of interest rate contracts | — | — | — | 835 | — | 835 | 101 |
| Amortization of interest rate contracts | — | — | — | 2,630 | 144 | 2,774 | 307 |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 1,244 | — | 66,237 | 67,481 | — |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (17,434) | (17,434) | — |
| Equity, June 30, 2024 | 1,762 | 155,336 | $5,010,460 | $(155) | $1,801,676 | $6,811,981 | $1,230,848 |
| Equity, March 31, 2023 | 1,755 | 155,075 | $5,449,936 | $(18,214) | $1,552,070 | $6,983,792 | $1,074,648 |
| Net activity from contributions and unearned compensation | — | 7 | (110) | — | — | (110) | 14,052 |
| Allocated net income for the period | — | — | 106,007 | — | 19,768 | 125,775 | 12,091 |
| Distributions | — | — | (153,716) | — | — | (153,716) | (18,376) |
| Conversion of redeemable partnership units | — | 16 | 599 | — | — | 599 | (599) |
| Adjustment to reflect redeemable partnership units at redemption value | — | — | (51,550) | — | — | (51,550) | 51,550 |
| Effective portion of interest rate contracts | — | — | — | 13,435 | — | 13,435 | 1,530 |
| Amortization of interest rate contracts | — | — | — | 1,373 | 144 | 1,517 | 157 |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (14,614) | (14,614) | — |
| Equity, June 30, 2023 | 1,755 | 155,098 | $5,351,166 | $(3,406) | $1,557,368 | $6,905,128 | $1,135,053 |
| 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 | 76 | 5,361 | — | — | 5,361 | 28,310 |
| Allocated net income for the period | — | — | 162,898 | — | 35,046 | 197,944 | 19,009 |
| Distributions | — | — | (307,864) | — | — | (307,864) | (37,706) |
| Conversion of redeemable partnership units | 2 | 75 | 2,754 | — | — | 2,754 | (2,754) |
| Adjustment to reflect redeemable partnership units at redemption value | — | — | 126,034 | — | — | 126,034 | (126,034) |
| Effective portion of interest rate contracts | — | — | — | 15,481 | — | 15,481 | 1,806 |
| Amortization of interest rate contracts | — | — | — | 5,511 | 288 | 5,799 | 642 |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | — | — | 47,326 | — | 163,097 | 210,423 | — |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (37,459) | (37,459) | — |
| Equity, June 30, 2024 | 1,762 | 155,336 | $5,010,460 | $(155) | $1,801,676 | $6,811,981 | $1,230,848 |
| 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 | 69 | 3,922 | — | — | 3,922 | 38,025 |
| Allocated net income for the period | — | — | 185,759 | — | 38,428 | 224,187 | 21,169 |
| Distributions | — | — | (307,409) | — | — | (307,409) | (36,737) |
| Conversion of redeemable partnership units | — | 21 | 794 | — | — | 794 | (794) |
| Adjustment to reflect redeemable partnership units at redemption value | — | — | 168,672 | — | — | 168,672 | (168,672) |
| Effective portion of interest rate contracts | — | — | — | 7,565 | — | 7,565 | 862 |
| Amortization of interest rate contracts | — | — | — | 2,747 | 288 | 3,035 | 314 |
| Contributions from noncontrolling interests in property partnerships | — | — | — | — | 7,555 | 7,555 | — |
| Distributions to noncontrolling interests in property partnerships | — | — | — | — | (36,220) | (36,220) | — |
| Equity, June 30, 2023 | 1,755 | 155,098 | $5,351,166 | $(3,406) | $1,557,368 | $6,905,128 | $1,135,053 |
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) | ||
|---|---|---|
| Six months ended June 30, | ||
| 2024 | 2023 | |
| Cash flows from operating activities: | ||
| Net income | $216,953 | $245,356 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 434,858 | 407,767 |
| Impairment loss | 13,615 | — |
| Amortization of right of use assets - operating leases | 1,785 | 929 |
| Amortization of sales type lease | (488) | — |
| Amortization of above and below market leases | (2,947) | — |
| Non-cash compensation expense | 35,187 | 41,524 |
| (Income) loss from unconsolidated joint ventures | (13,387) | 14,237 |
| Distributions of net cash flow from operations of unconsolidated joint ventures | 21,153 | 11,437 |
| Gains from investments in securities | (2,587) | (3,236) |
| Allowance for current expected credit losses (gains) | 36 | 264 |
| Non-cash portion of interest expense | 14,172 | 14,940 |
| Unrealized gain on non-real estate investment | (454) | (383) |
| Change in assets and liabilities: | ||
| Tenant and other receivables, net | 39,743 | 3,721 |
| Accrued rental income, net | (52,590) | (42,965) |
| Prepaid expenses and other assets | (16,985) | (24,758) |
| Right of use assets - operating lease | (750) | — |
| Lease liabilities - operating leases | (997) | 140 |
| Accounts payable and accrued expenses | (24,650) | 6,320 |
| Accrued interest payable | (21,637) | 7,314 |
| Other liabilities | (32,922) | (21,773) |
| Tenant leasing costs | (42,449) | (47,651) |
| Total adjustments | 347,706 | 367,827 |
| Net cash provided by operating activities | 564,659 | 613,183 |
| Cash flows from investing activities: | ||
| Construction in progress | (313,602) | (235,331) |
| Building and other capital improvements | (66,799) | (78,344) |
| Tenant improvements | (117,848) | (135,743) |
| Acquisition of real estate (net of cash received upon consolidation) | 6,086 | — |
| Capital contributions to unconsolidated joint ventures | (60,461) | (103,595) |
| Capital distributions from unconsolidated joint ventures | — | 7,350 |
| Investment in non-real estate investments | (625) | (733) |
| Issuance of note receivables (including related party) | (1,423) | (10,500) |
| Investments in securities, net | 1,168 | 2,032 |
| Net cash used in investing activities | (553,504) | (554,864) |
| Cash flows from financing activities: | ||
| Repayments of mortgage notes payable | (2,019) | — |
| Proceeds from unsecured senior notes | — | 747,727 |
| Repayment / redemption of unsecured senior notes | (700,000) | — |
| Borrowings on unsecured term loan | — | 1,200,000 |
| BOSTON PROPERTIES LIMITED PARTNERSHIPCONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited and in thousands) | ||
|---|---|---|
| Six months ended June 30, | ||
| 2024 | 2023 | |
| Payments on finance lease obligations | (5,999) | — |
| Repayment of unsecured term loan | (500,000) | (730,000) |
| Borrowings on commercial paper program | 1,859,075 | — |
| Repayments on commercial paper program | (1,359,075) | — |
| Deferred financing costs | (2,633) | (12,339) |
| Net activity from equity transactions | (2,136) | (39) |
| Distributions | (344,574) | (343,325) |
| Proceeds from sale of interest in property partnerships and contributions from noncontrolling interests in property partnerships | 208,599 | 7,555 |
| Distributions to noncontrolling interests in property partnerships | (37,459) | (36,220) |
| Net cash provided by (used in) financing activities | (886,221) | 833,359 |
| Net increase (decrease) in cash and cash equivalents and cash held in escrows | (875,066) | 891,678 |
| 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 | $737,501 | $1,628,490 |
| 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 | $685,376 | $1,581,575 |
| Cash held in escrows, end of period | 52,125 | 46,915 |
| Cash and cash equivalents and cash held in escrows, end of period | $737,501 | $1,628,490 |
| Supplemental disclosures: | ||
| Cash paid for interest (net of amounts capitalized) | $342,409 | $273,214 |
| Interest capitalized | $19,717 | $21,153 |
| Non-cash investing and financing activities: | ||
| Write-off of fully depreciated real estate | $(57,999) | $(84,629) |
| Change in real estate included in accounts payable and accrued expenses | $(48,896) | $25,562 |
| Right of use assets obtained in exchange for lease liabilities - operating lease | $30,631 | $— |
| 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 distributions to noncontrolling interests in property partnerships, net | $60,410 | $— |
| Capitalized operating lease costs | $15,098 | $— |
| Investment in unconsolidated joint ventures eliminated upon consolidation | $(11,834) | $— |
| Mortgage notes payable recorded upon consolidation | $207,093 | $— |
| Real estate and intangibles recorded upon consolidation | $(220,015) | $— |
| Distributions declared but not paid | $172,172 | $171,465 |
| Conversions of redeemable partnership units to partners’ capital | $2,754 | $794 |
| Issuance of restricted securities to employees and non-employee directors | $43,366 | $47,885 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.