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 |
Hudson Pacific Properties, Inc. | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||
Hudson Pacific Properties, L.P. | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices) (Zip Code) |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||
Hudson Pacific Properties, Inc. | ||||||||||||||||||||
Hudson Pacific Properties, Inc. |
Hudson Pacific Properties, Inc. | Hudson Pacific Properties, L.P. |
Hudson Pacific Properties, Inc. | Hudson Pacific Properties, L.P. |
Accelerated filer ☐ | ||||||||
Non-accelerated filer ☐ | Smaller reporting company | |||||||
Emerging growth company |
Large accelerated filer ☐ | Accelerated filer ☐ | |||||||
Smaller reporting company | ||||||||
Emerging growth company |
Hudson Pacific Properties, Inc. ☐ | Hudson Pacific Properties, L.P. ☐ |
Hudson Pacific Properties, Inc. Yes ☐ No | Hudson Pacific Properties, L.P. Yes ☐ No |
Page | ||||||||
ITEM 1. | Financial Statements of Hudson Pacific Properties, Inc. | |||||||
ITEM 1. | Financial Statements of Hudson Pacific Properties, L.P. | |||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 5. | ||||||||
ITEM 6. | ||||||||
March 31, 2024 (unaudited) | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Investment in real estate, at cost | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Investment in real estate, net | |||||||||||
Non-real estate property, plant and equipment, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Straight-line rent receivables, net | |||||||||||
Deferred leasing costs and intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Prepaid expenses and other assets, net | |||||||||||
Investment in unconsolidated real estate entities | |||||||||||
Goodwill | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Liabilities | |||||||||||
Unsecured and secured debt, net | $ | $ | |||||||||
Joint venture partner debt | |||||||||||
Accounts payable, accrued liabilities and other | |||||||||||
Operating lease liabilities | |||||||||||
Intangible liabilities, net | |||||||||||
Security deposits, prepaid rent and other | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (note 20) | |||||||||||
Redeemable preferred units of the operating partnership | |||||||||||
Redeemable non-controlling interest in consolidated real estate entities | |||||||||||
Equity | |||||||||||
Hudson Pacific Properties, Inc. stockholders' equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total Hudson Pacific Properties, Inc. stockholders’ equity | |||||||||||
Non-controlling interest—members in consolidated real estate entities | |||||||||||
Non-controlling interest—units in the operating partnership | |||||||||||
Total equity | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
REVENUES | |||||||||||
Office | |||||||||||
Rental revenues | $ | $ | |||||||||
Service and other revenues | |||||||||||
Total office revenues | |||||||||||
Studio | |||||||||||
Rental revenues | |||||||||||
Service and other revenues | |||||||||||
Total studio revenues | |||||||||||
Total revenues | |||||||||||
OPERATING EXPENSES | |||||||||||
Office operating expenses | |||||||||||
Studio operating expenses | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total operating expenses | |||||||||||
OTHER INCOME (EXPENSES) | |||||||||||
Loss from unconsolidated real estate entities | ( | ( | |||||||||
Fee income | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Management services reimbursement income—unconsolidated real estate entities | |||||||||||
Management services expense—unconsolidated real estate entities | ( | ( | |||||||||
Transaction-related expenses | ( | ( | |||||||||
Unrealized (loss) gain on non-real estate investments | ( | ||||||||||
Gain on sale of real estate | |||||||||||
Other income | |||||||||||
Total other expenses | ( | ( | |||||||||
Loss before income tax benefit (provision) | ( | ( | |||||||||
Income tax benefit (provision) | |||||||||||
Net loss | ( | ( | |||||||||
Net income attributable to Series A preferred units | ( | ( | |||||||||
Net income attributable to Series C preferred shares | ( | ( | |||||||||
Net income attributable to participating securities | ( | ( | |||||||||
Net loss (income) attributable to non-controlling interest in consolidated real estate entities | ( | ||||||||||
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||
Net loss attributable to common units in the operating partnership | |||||||||||
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | ( | $ | ( | |||||||
BASIC AND DILUTED PER SHARE AMOUNTS | |||||||||||
Net loss attributable to common stockholders—basic | $ | ( | $ | ( | |||||||
Net loss attributable to common stockholders—diluted | $ | ( | $ | ( | |||||||
Weighted average shares of common stock outstanding—basic | |||||||||||
Weighted average shares of common stock outstanding—diluted |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Currency translation adjustments | ( | ||||||||||
Net unrealized gains on derivative instruments: | |||||||||||
Unrealized gains | |||||||||||
Reclassification adjustment for realized (gains) losses | ( | ||||||||||
Total net unrealized gains on derivative instruments | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive loss | ( | ( | |||||||||
Comprehensive income attributable to Series A preferred units | ( | ( | |||||||||
Comprehensive income attributable to Series C preferred stock | ( | ( | |||||||||
Comprehensive income attributable to participating securities | ( | ( | |||||||||
Comprehensive loss (income) attributable to non-controlling interest in consolidated real estate entities | ( | ||||||||||
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||
Comprehensive loss attributable to non-controlling interest in the operating partnership | |||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | ( | $ | ( |
Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling Interest | |||||||||||||||||||||||||||||||
Series C Cumulative Redeemable Preferred Stock | Shares of Common Stock | Stock Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Units in the Operating Partnership | Members in Consolidated Real Estate Entities | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Contributions | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||
Purchase of non-controlling interest | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||
Issuance of unrestricted stock | — | ( | — | — | — | — | ||||||||||||||||||||||||||
Shares withheld to satisfy tax withholding obligations | — | ( | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||
Declared dividend | ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||
Redemption of common units in operating partnership | — | — | — | — | ( | — | ||||||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Contributions | — | — | — | — | — | — | ||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||
Issuance of unrestricted stock | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares withheld to satisfy tax withholding obligations | ( | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||
Repurchase of common stock | — | ( | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||
Declared dividend | ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash interest expense | |||||||||||
Amortization of stock-based compensation | |||||||||||
Loss from unconsolidated real estate entities | |||||||||||
Unrealized loss (gain) on non-real estate investments | ( | ||||||||||
Straight-line rents | ( | ||||||||||
Straight-line rent expenses | |||||||||||
Amortization of above- and below-market leases, net | ( | ( | |||||||||
Amortization of above- and below-market ground leases, net | |||||||||||
Amortization of lease incentive costs | |||||||||||
Gain on sale of real estate | ( | ||||||||||
Deferred tax benefit | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Deferred leasing costs and lease intangibles | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable, accrued liabilities and other | |||||||||||
Security deposits, prepaid rent and other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Proceeds from sales of real estate | |||||||||||
Additions to investment in real estate | ( | ( | |||||||||
Contributions to non-real estate investments | ( | ( | |||||||||
Proceeds from sales of non-real estate investments | |||||||||||
Distributions from unconsolidated real estate entities | |||||||||||
Contributions to unconsolidated real estate entities | ( | ( | |||||||||
Additions to non-real estate property, plant and equipment | ( | ( | |||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from unsecured and secured debt | |||||||||||
Payments of unsecured and secured debt | ( | ( | |||||||||
Repurchases of common stock | ( | ||||||||||
Dividends paid to common stock and unitholders | ( | ( | |||||||||
Dividends paid to preferred stock and unitholders | ( | ( | |||||||||
Distributions to redeemable non-controlling members in consolidated real estate entities | ( | ( | |||||||||
Contributions from non-controlling members in consolidated real estate entities | |||||||||||
Purchase of non-controlling interest | ( | ||||||||||
Distributions to non-controlling members in consolidated real estate entities | ( | ( | |||||||||
Payments to satisfy tax withholding obligations | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash—beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | $ |
March 31, 2024 (unaudited) | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Investment in real estate, at cost | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Investment in real estate, net | |||||||||||
Non-real estate property, plant and equipment, net | |||||||||||
Cash and cash equivalents | |||||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Straight-line rent receivables, net | |||||||||||
Deferred leasing costs and intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Prepaid expenses and other assets, net | |||||||||||
Investment in unconsolidated real estate entities | |||||||||||
Goodwill | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND CAPITAL | |||||||||||
Liabilities | |||||||||||
Unsecured and secured debt, net | $ | $ | |||||||||
Joint venture partner debt | |||||||||||
Accounts payable, accrued liabilities and other | |||||||||||
Operating lease liabilities | |||||||||||
Intangible liabilities, net | |||||||||||
Security deposits, prepaid rent and other | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (note 20) | |||||||||||
Redeemable preferred units of the operating partnership | |||||||||||
Redeemable non-controlling interest in consolidated real estate entities | |||||||||||
Capital | |||||||||||
Hudson Pacific Properties, L.P. partners’ capital | |||||||||||
Common units, | |||||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Total Hudson Pacific Properties, L.P. partners’ capital | |||||||||||
Non-controlling interest—members in consolidated real estate entities | |||||||||||
Total capital | |||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
REVENUES | |||||||||||
Office | |||||||||||
Rental revenues | $ | $ | |||||||||
Service and other revenues | |||||||||||
Total office revenues | |||||||||||
Studio | |||||||||||
Rental revenues | |||||||||||
Service and other revenues | |||||||||||
Total studio revenues | |||||||||||
Total revenues | |||||||||||
OPERATING EXPENSES | |||||||||||
Office operating expenses | |||||||||||
Studio operating expenses | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total operating expenses | |||||||||||
OTHER INCOME (EXPENSES) | |||||||||||
Loss from unconsolidated real estate entities | ( | ( | |||||||||
Fee income | |||||||||||
Interest expense | ( | ( | |||||||||
Interest income | |||||||||||
Management services reimbursement income—unconsolidated real estate entities | |||||||||||
Management services expense—unconsolidated real estate entities | ( | ( | |||||||||
Transaction-related expenses | ( | ( | |||||||||
Unrealized (loss) gain on non-real estate investments | ( | ||||||||||
Gain on sale of real estate | |||||||||||
Other income | |||||||||||
Total other expenses | ( | ( | |||||||||
Loss before income tax benefit (provision) | ( | ( | |||||||||
Income tax benefit (provision) | |||||||||||
Net loss | ( | ( | |||||||||
Net loss (income) attributable to non-controlling interest in consolidated real estate entities | ( | ||||||||||
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||
Net loss attributable to Hudson Pacific Properties, L.P. | ( | ( | |||||||||
Net income attributable to Series A preferred units | ( | ( | |||||||||
Net income attributable to Series C preferred units | ( | ( | |||||||||
Net income attributable to participating securities | ( | ( | |||||||||
NET LOSS AVAILABLE TO COMMON UNITHOLDERS | $ | ( | $ | ( | |||||||
BASIC AND DILUTED PER UNIT AMOUNTS | |||||||||||
Net loss attributable to common unitholders—basic | $ | ( | $ | ( | |||||||
Net loss attributable to common unitholders—diluted | $ | ( | $ | ( | |||||||
Weighted average shares of common units outstanding—basic | |||||||||||
Weighted average shares of common units outstanding—diluted |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Currency translation adjustments | ( | ||||||||||
Net unrealized gains on derivative instruments: | |||||||||||
Unrealized gains | |||||||||||
Reclassification adjustment for realized (gains) losses | ( | ||||||||||
Total net unrealized gains on derivative instruments | |||||||||||
Total other comprehensive income | |||||||||||
Comprehensive loss | ( | ( | |||||||||
Comprehensive income attributable to Series A preferred units | ( | ( | |||||||||
Comprehensive income attributable to Series C preferred units | ( | ( | |||||||||
Comprehensive income attributable to participating securities | ( | ( | |||||||||
Comprehensive loss (income) attributable to non-controlling interest in consolidated real estate entities | ( | ||||||||||
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO PARTNERS’ CAPITAL | $ | ( | $ | ( |
Hudson Pacific Properties, L.P. Partners’ Capital | ||||||||||||||||||||||||||
Preferred Units | Number of Common Units | Common Units | Accumulated Other Comprehensive (Loss) Income | Total Partners’ Capital | Non-controlling Interest—Members in Consolidated Real Estate Entities | Total Capital | ||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
Contributions | — | — | — | — | — | |||||||||||||||||||||
Distributions | — | — | — | — | — | ( | ( | |||||||||||||||||||
Purchase of non-controlling interest | — | — | — | ( | ( | |||||||||||||||||||||
Issuance of unrestricted units | — | — | — | — | — | — | ||||||||||||||||||||
Units withheld to satisfy tax withholding obligations | — | ( | ( | — | ( | — | ( | |||||||||||||||||||
Declared distributions | ( | — | ( | — | ( | — | ( | |||||||||||||||||||
Amortization of unit-based compensation | — | — | — | — | ||||||||||||||||||||||
Net income (loss) | — | ( | — | ( | ( | ( | ||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||
Balance, March 31, 2024 | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
Contributions | — | — | — | — | — | |||||||||||||||||||||
Distributions | — | — | — | — | — | ( | ( | |||||||||||||||||||
Issuance of unrestricted units | — | — | — | — | — | — | ||||||||||||||||||||
Repurchase of common units | — | ( | ( | — | ( | — | ( | |||||||||||||||||||
Units withheld to satisfy tax withholding obligations | — | ( | ( | — | ( | — | ( | |||||||||||||||||||
Declared distributions | ( | — | ( | — | ( | — | ( | |||||||||||||||||||
Amortization of unit-based compensation | — | — | — | — | ||||||||||||||||||||||
Net income (loss) | — | ( | — | ( | ( | |||||||||||||||||||||
Other comprehensive income | — | — | — | |||||||||||||||||||||||
Balance, March 31, 2023 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Non-cash interest expense | |||||||||||
Amortization of unit-based compensation | |||||||||||
Loss from unconsolidated real estate entities | |||||||||||
Unrealized loss (gain) on non-real estate investments | ( | ||||||||||
Straight-line rents | ( | ||||||||||
Straight-line rent expenses | |||||||||||
Amortization of above- and below-market leases, net | ( | ( | |||||||||
Amortization of above- and below-market ground leases, net | |||||||||||
Amortization of lease incentive costs | |||||||||||
Gain on sale of real estate | ( | ||||||||||
Deferred tax benefit | ( | ||||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Deferred leasing costs and lease intangibles | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ||||||||||
Accounts payable, accrued liabilities and other | |||||||||||
Security deposits, prepaid rent and other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Proceeds from sales of real estate | |||||||||||
Additions to investment in real estate | ( | ( | |||||||||
Contributions to non-real estate investments | ( | ( | |||||||||
Proceeds from sale of non-real estate investment | |||||||||||
Distributions from unconsolidated real estate entities | |||||||||||
Contributions to unconsolidated real estate entities | ( | ( | |||||||||
Additions to non-real estate property, plant and equipment | ( | ( | |||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from unsecured and secured debt | |||||||||||
Payments of unsecured and secured debt | ( | ( | |||||||||
Repurchases of common units | ( | ||||||||||
Distributions paid to common unitholders | ( | ( | |||||||||
Distributions paid to preferred unitholders | ( | ( | |||||||||
Distributions to redeemable non-controlling members in consolidated real estate entities | ( | ( | |||||||||
Contributions from non-controlling members in consolidated real estate entities | |||||||||||
Purchase of non-controlling interest | ( | ||||||||||
Distributions to non-controlling members in consolidated real estate entities | ( | ( | |||||||||
Payments to satisfy tax withholding obligations | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents and restricted cash | ( | ||||||||||
Cash and cash equivalents and restricted cash—beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | $ |
Segments | Number of Properties | Square Feet (unaudited) | ||||||||||||
Consolidated portfolio | ||||||||||||||
Office | ||||||||||||||
Studio | ||||||||||||||
Future development | ||||||||||||||
Total consolidated portfolio | ||||||||||||||
Unconsolidated portfolio(1) | ||||||||||||||
Office(2) | ||||||||||||||
Studio(3) | ||||||||||||||
Future development(4) | ||||||||||||||
Total unconsolidated portfolio | ||||||||||||||
TOTAL |
Entity | Property | Ownership Interest | ||||||
Hudson 1099 Stewart, L.P. | Hill7 | % | ||||||
HPP-MAC WSP, LLC | None(1) | % | ||||||
Hudson One Ferry REIT, L.P. | Ferry Building | % | ||||||
Sunset Bronson Entertainment Properties, LLC | Sunset Bronson Studios, ICON, CUE | % | ||||||
Sunset Gower Entertainment Properties, LLC | Sunset Gower Studios | % | ||||||
Sunset 1440 North Gower Street, LLC | Sunset Gower Studios | % | ||||||
Sunset Las Palmas Entertainment Properties, LLC | Sunset Las Palmas Studios, Harlow | % | ||||||
Sunset Services Holdings, LLC | None(2) | % | ||||||
Sunset Studios Holdings, LLC | EPIC | % | ||||||
Hudson Media and Entertainment Management, LLC | None(3) | % | ||||||
Hudson 6040 Sunset, LLC | 6040 Sunset | % | ||||||
Hudson 1918 Eighth, L.P. | 1918 Eighth | % |
Revenue Stream | Components | Financial Statement Location | ||||||||||||
Rental revenues | Office, stage and storage rentals | Office and Studio segments: rental | ||||||||||||
Tenant recoveries and other tenant-related revenues | Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues | Office segment: rental Studio segment: rental and service and other revenues | ||||||||||||
Ancillary revenues | Revenues derived from tenants’ use of power, HVAC and telecommunications (i.e., telephone and internet) and lighting, equipment and vehicle rentals | Studio segment: service and other revenues | ||||||||||||
Other revenues | Parking revenue that is not associated with lease agreements and other | Office and Studio segments: service and other revenues | ||||||||||||
Sale of real estate | Gains on sales derived from cash consideration less cost basis | Gain on sale of real estate | ||||||||||||
Management fee income | Income derived from management services provided to unconsolidated joint venture entities | Fee income | ||||||||||||
Management services reimbursement income | Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities | Management services reimbursement income—unconsolidated real estate entities |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Ancillary revenues | $ | $ | |||||||||
Other revenues | $ | $ | |||||||||
Studio-related tenant recoveries | $ | $ | |||||||||
Management fee income | $ | $ | |||||||||
Management services reimbursement income | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Ancillary revenues | $ | $ | |||||||||
Other revenues | $ | $ | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Land | $ | $ | |||||||||
Building and improvements | |||||||||||
Tenant improvements | |||||||||||
Furniture and fixtures | |||||||||||
Property under development | |||||||||||
INVESTMENT IN REAL ESTATE, AT COST | $ | $ |
Property | Segment | Date of Disposition | Square Feet (unaudited) | Sales Price(1) (in millions) | Gain on Sale(2) (in millions) | |||||||||||||||||||||||||||
Skyway Landing | Office | 2/6/2023 | $ | $ | ||||||||||||||||||||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Trailers | $ | $ | |||||||||
Production equipment | |||||||||||
Trucks and other vehicles | |||||||||||
Leasehold improvements | |||||||||||
Other equipment | |||||||||||
Furniture, fixtures and equipment | |||||||||||
Non-real estate property, plant and equipment, at cost | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET | $ | $ |
Property | Property Type | Submarket | Ownership Interest | Functional Currency | |||||||||||||
Sunset Waltham Cross Studios | Development | Broxbourne, United Kingdom | Pound sterling | (1) | |||||||||||||
Sunset Glenoaks Studios | Development | Sun Valley | U.S. dollar | (2)(3) | |||||||||||||
Bentall Centre | Operating Property | Downtown Vancouver | Canadian dollar | (2)(4) | |||||||||||||
Sunset Pier 94 Studios | Development | Manhattan | U.S dollar | (4)(5) |
March 31, 2024 | December 31, 2023 | ||||||||||
ASSETS | |||||||||||
Investment in real estate, net | $ | $ | |||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES | |||||||||||
Secured debt, net | $ | $ | |||||||||
Other liabilities | |||||||||||
TOTAL LIABILITIES | |||||||||||
Company’s capital(1) | |||||||||||
Partner’s capital | |||||||||||
TOTAL CAPITAL | |||||||||||
TOTAL LIABILITIES AND CAPITAL | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
TOTAL REVENUES | $ | $ | |||||||||
TOTAL EXPENSES | |||||||||||
NET LOSS | $ | ( | $ | ( |
March 31, 2024 | December 31, 2023 | ||||||||||
Deferred leasing costs and in-place lease intangibles | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Deferred leasing costs and in-place lease intangibles, net | |||||||||||
Below-market ground leases | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Below-market ground leases, net | |||||||||||
Above-market leases | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Above-market leases, net | |||||||||||
Customer relationships | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Customer relationships, net | |||||||||||
Non-competition agreements | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Non-competition agreements, net | |||||||||||
Trade name | |||||||||||
Parking easement | |||||||||||
DEFERRED LEASING COSTS AND INTANGIBLE ASSETS, NET | $ | $ | |||||||||
Below-market leases | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Below-market leases, net | |||||||||||
Above-market ground leases | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Above-market ground leases, net | |||||||||||
INTANGIBLE LIABILITIES, NET | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Deferred leasing costs and in-place lease intangibles(1) | $ | ( | $ | ( | |||||||
Below-market ground leases(2) | $ | ( | $ | ( | |||||||
Above-market leases(3) | $ | ( | $ | ( | |||||||
Customer relationships(1) | $ | ( | $ | ( | |||||||
Non-competition agreements(1) | $ | ( | $ | ( | |||||||
Below-market leases(3) | $ | $ | |||||||||
Above-market ground leases(2) | $ | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Non-real estate investments | $ | $ | |||||||||
Deferred tax assets, net | |||||||||||
Interest rate derivative assets | |||||||||||
Deferred financing costs, net | |||||||||||
Prepaid property tax | |||||||||||
Prepaid insurance | |||||||||||
Other | |||||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET | $ | $ |
March 31, 2024 | December 31, 2023 | Interest Rate(1) | Contractual Maturity Date(2) | |||||||||||||||||||||||
UNSECURED AND SECURED DEBT | ||||||||||||||||||||||||||
Unsecured debt | ||||||||||||||||||||||||||
Unsecured revolving credit facility(3)(4) | $ | $ | SOFR + | 12/21/2026 | (5) | |||||||||||||||||||||
Series B notes | 12/16/2025 | |||||||||||||||||||||||||
Series C notes | 12/16/2027 | |||||||||||||||||||||||||
Series D notes | 7/6/2026 | |||||||||||||||||||||||||
11/1/2027 | ||||||||||||||||||||||||||
4/1/2029 | ||||||||||||||||||||||||||
1/15/2030 | ||||||||||||||||||||||||||
2/15/2028 | ||||||||||||||||||||||||||
Total unsecured debt | ||||||||||||||||||||||||||
Secured debt | ||||||||||||||||||||||||||
Hollywood Media Portfolio | $ | $ | SOFR + | 8/9/2026 | (7) | |||||||||||||||||||||
Acquired Hollywood Media Portfolio debt | ( | ( | SOFR + | 8/9/2026 | (7) | |||||||||||||||||||||
Hollywood Media Portfolio, net(8)(9) | ||||||||||||||||||||||||||
Element LA | 11/6/2025 | |||||||||||||||||||||||||
1918 Eighth(10) | SOFR + | 12/18/2025 | ||||||||||||||||||||||||
Hill7(11) | 11/6/2028 | |||||||||||||||||||||||||
Total secured debt | ||||||||||||||||||||||||||
Total unsecured and secured debt | ||||||||||||||||||||||||||
Unamortized deferred financing costs/loan discounts(12) | ( | ( | ||||||||||||||||||||||||
TOTAL UNSECURED AND SECURED DEBT, NET | $ | $ | ||||||||||||||||||||||||
JOINT VENTURE PARTNER DEBT(13) | $ | $ | 10/9/2032 | (14) |
Year | Unsecured and Secured Debt | Joint Venture Partner Debt | ||||||||||||
Remaining 2024 | $ | $ | ||||||||||||
2025 | ||||||||||||||
2026 | ||||||||||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
Thereafter | ||||||||||||||
TOTAL | $ | $ |
Covenant Ratio | Covenant Level | Actual Performance | ||||||||||||
Total liabilities to total asset value | ≤ | |||||||||||||
Unsecured indebtedness to unencumbered asset value | ≤ | |||||||||||||
Adjusted EBITDA to fixed charges | ≥ | |||||||||||||
Secured indebtedness to total asset value | ≤ | |||||||||||||
Unencumbered NOI to unsecured interest expense | ≥ |
Covenant Ratio(1) | Covenant Level | Actual Performance | ||||||||||||
Total liabilities to total asset value | ≤ | |||||||||||||
Unsecured indebtedness to unencumbered asset value | ≤ | |||||||||||||
Adjusted EBITDA to fixed charges | ≥ | |||||||||||||
Secured indebtedness to total asset value | ≤ | |||||||||||||
Unencumbered NOI to unsecured interest expense | ≥ |
Covenant Ratio(1) | Covenant Level | Actual Performance | ||||||||||||
Debt to total assets | ≤ | |||||||||||||
Total unencumbered assets to unsecured debt | ≥ | |||||||||||||
Consolidated income available for debt service to annual debt service charge | ≥ | |||||||||||||
Secured debt to total assets | ≤ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Gross interest expense(1) | $ | $ | |||||||||
Capitalized interest | ( | ( | |||||||||
Non-cash interest expense(2) | |||||||||||
INTEREST EXPENSE | $ | $ |
Fair Value Assets (Liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying Debt Instrument | Type of Instrument | Accounting Policy | Notional Amount | Effective Date | Maturity Date | Interest Rate | March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
1918 Eighth | Swap | Cash flow hedge | $ | February 2023 | October 2025 | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
1918 Eighth | Cap | Partial cash flow hedge(1) | $ | June 2023 | December 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||
1918 Eighth | Sold cap(2) | Mark-to-market | $ | June 2023 | December 2025 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Hollywood Media Portfolio | Cap | Partial cash flow hedge(1) | $ | August 2023 | August 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hollywood Media Portfolio | Sold cap(2) | Mark-to-market | $ | August 2023 | August 2024 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Hollywood Media Portfolio | Swap | Cash flow hedge | $ | August 2023 | June 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Hollywood Media Portfolio | Swap | Cash flow hedge | $ | February 2024 | August 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||
Deferred tax assets, net(1) | $ | $ | ||||||||||||
Deferred tax liabilities, net(2) | ( | ( | ||||||||||||
Deferred tax liabilities, net | $ | ( | $ | ( | ||||||||||
Total deferred tax assets(3) | $ | $ | ||||||||||||
Valuation allowance | ( | ( | ||||||||||||
Total deferred tax liabilities(3) | ( | ( | ||||||||||||
Deferred tax liabilities, net | $ | ( | $ | ( |
Year | ||||||||
Remaining 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
TOTAL | $ |
Year | Lease Payments(1) | |||||||
Remaining 2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 | ||||||||
Thereafter | ||||||||
Total operating lease payments | ||||||||
Less: interest portion | ( | |||||||
PRESENT VALUE OF OPERATING LEASE LIABILITIES | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Variable rental expense | $ | $ | |||||||||
Minimum rental expense | $ | $ |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||
Interest rate derivative assets(1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Interest rate derivative liabilities(2) | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Non-real estate investments measured at fair value(1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Earnout liability(2) | $ | $ | $ | $ | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||||||||||||||||
Non-real estate investments measured at NAV(1)(3) | $ | $ | $ | $ | $ | $ | $ | $ |
Balance, December 31, 2023 | $ | ( | ||||||
Settlement | ||||||||
Balance, March 31, 2024 | $ |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Unsecured debt(1) | $ | $ | $ | $ | |||||||||||||||||||
Secured debt(1) | $ | $ | $ | $ | |||||||||||||||||||
Consolidated joint venture partner debt | $ | $ | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Expensed stock compensation(1) | $ | $ | |||||||||
Capitalized stock compensation(2) | |||||||||||
TOTAL STOCK COMPENSATION(3) | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator: | |||||||||||
Basic and diluted net loss available to common stockholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Basic weighted average common shares outstanding | |||||||||||
Effect of dilutive instruments(1) | |||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||
Basic earnings per common share | $ | ( | $ | ( | |||||||
Diluted earnings per common share | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator: | |||||||||||
Basic and diluted net loss available to common unitholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Basic weighted average common units outstanding | |||||||||||
Effect of dilutive instruments(1) | |||||||||||
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING | |||||||||||
Basic earnings per common unit | $ | ( | $ | ( | |||||||
Diluted earnings per common unit | $ | ( | $ | ( | |||||||
Three Months Ended March 31, 2024 | |||||||||||
Series A Redeemable Preferred Units | Consolidated Real Estate Entity | ||||||||||
BEGINNING OF PERIOD | $ | $ | |||||||||
Distributions | ( | ||||||||||
Declared dividend | ( | ||||||||||
Net income (loss) | ( | ||||||||||
END OF PERIOD | $ | $ |
Derivative Instruments | Currency Translation Adjustments | Total Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2023 | $ | $ | ( | $ | ( | |||||||||||||||
Unrealized gains recognized in AOCI | ( | |||||||||||||||||||
Reclassification from AOCI into income(1) | ( | ( | ||||||||||||||||||
Net change in AOCI | ( | |||||||||||||||||||
BALANCE AT MARCH 31, 2024 | $ | $ | ( | $ |
Derivative Instruments | Currency Translation Adjustments | Total Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2023 | $ | $ | ( | $ | ( | |||||||||||||||
Unrealized gains recognized in AOCI | ( | |||||||||||||||||||
Reclassification from AOCI into income(1) | ( | ( | ||||||||||||||||||
Net change in AOCI | ( | |||||||||||||||||||
BALANCE AT MARCH 31, 2024 | $ | $ | ( | $ |
March 31, 2024 | December 31, 2023 | ||||||||||
Company-owned common units in the operating partnership | |||||||||||
Company’s ownership interest percentage | % | % | |||||||||
Non-controlling common units in the operating partnership(1) | |||||||||||
Non-controlling ownership interest percentage | % | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Common stock | $ | $ | |||||||||
Common units | $ | $ | |||||||||
Series A preferred units | $ | $ | |||||||||
Series C preferred stock | $ | $ | |||||||||
Performance units | $ | $ | |||||||||
Payment date | March 28, 2024 | March 30, 2023 | |||||||||
Record date | March 18, 2024 | March 20, 2023 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Office segment | |||||||||||
Office revenues | $ | $ | |||||||||
Office expenses | ( | ( | |||||||||
Office segment profit | |||||||||||
Studio segment | |||||||||||
Studio revenues | |||||||||||
Studio expenses | ( | ( | |||||||||
Studio segment profit | |||||||||||
TOTAL SEGMENT PROFIT | $ | $ | |||||||||
Segment revenues | $ | $ | |||||||||
Segment expenses | ( | ( | |||||||||
TOTAL SEGMENT PROFIT | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
NET LOSS | $ | ( | $ | ( | |||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Loss from unconsolidated real estate entities | |||||||||||
Fee income | ( | ( | |||||||||
Interest expense | |||||||||||
Interest income | ( | ( | |||||||||
Management services reimbursement income—unconsolidated real estate entities | ( | ( | |||||||||
Management services expense—unconsolidated real estate entities | |||||||||||
Transaction-related expenses | |||||||||||
Unrealized loss (gain) on non-real estate investments | ( | ||||||||||
Gain on sale of real estate | ( | ||||||||||
Other income | ( | ( | |||||||||
TOTAL PROFIT FROM ALL SEGMENTS | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
Non-cash investing and financing activities | |||||||||||
Accounts payable and accrued liabilities for real estate investments | $ | $ | |||||||||
Ground lease remeasurements | $ | $ | |||||||||
Redemption of common units in the operating partnership | $ | $ | |||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
BEGINNING OF PERIOD | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
TOTAL | $ | $ | |||||||||
END OF PERIOD | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
TOTAL | $ | $ |
Number of Properties | Rentable Square Feet(1) | Percent Occupied(2) | Percent Leased(2) | Annualized Base Rent per Square Foot(3) | ||||||||||||||||||||||||||||
OFFICE | ||||||||||||||||||||||||||||||||
Same-store(4) | 42 | 13,093,044 | 79.0 | % | 80.3 | % | $ | 55.54 | ||||||||||||||||||||||||
Stabilized non-same store(5) | 1 | 35,570 | — | — | — | |||||||||||||||||||||||||||
Total stabilized | 43 | 13,128,614 | 78.8 | 80.0 | 55.54 | |||||||||||||||||||||||||||
Lease-up(5)(6) | 1 | 723,919 | 82.3 | 88.5 | 63.38 | |||||||||||||||||||||||||||
Total in-service office | 44 | 13,852,533 | 79.0 | 80.5 | 55.97 | |||||||||||||||||||||||||||
STUDIO | ||||||||||||||||||||||||||||||||
Same-store(7) | 3 | 1,231,278 | 76.9 | 76.9 | 46.48 | |||||||||||||||||||||||||||
Total | 3 | 1,231,278 | ||||||||||||||||||||||||||||||
Repositioning(5)(8) | 1 | 278,600 | — | 2.2 | — | |||||||||||||||||||||||||||
Development(5)(9) | 3 | 1,019,000 | 0.3 | 0.3 | — | |||||||||||||||||||||||||||
Total repositioning and development | 4 | 1,297,600 | ||||||||||||||||||||||||||||||
Total office and studio properties | 51 | 16,381,411 | ||||||||||||||||||||||||||||||
Future development(10) | 7 | 3,233,589 | ||||||||||||||||||||||||||||||
TOTAL | 58 | 19,615,000 |
Type | Submarket | Estimated Square Feet(1) | Estimated Completion Date | Estimated Stabilization Date | ||||||||||||||||||||||||||||
Under Construction: | ||||||||||||||||||||||||||||||||
Los Angeles, California | ||||||||||||||||||||||||||||||||
Sunset Glenoaks Studios(2) | Studio | Sun Valley | 241,000 | Q2-2024 | Q3-2024 | |||||||||||||||||||||||||||
Seattle, Washington | ||||||||||||||||||||||||||||||||
Washington 1000 | Office | Denny Triangle | 546,000 | Q2-2024 | Q2-2026 | |||||||||||||||||||||||||||
New York, New York | ||||||||||||||||||||||||||||||||
Sunset Pier 94 Studios(3) | Studio | Manhattan | 232,000 | Q4-2025 | Q3-2026 | |||||||||||||||||||||||||||
Total Under Construction | 1,019,000 | |||||||||||||||||||||||||||||||
Future Development Pipeline: | ||||||||||||||||||||||||||||||||
Los Angeles, California | ||||||||||||||||||||||||||||||||
Sunset Las Palmas Studios—Development(4) | Studio | Hollywood | 617,581 | TBD | TBD | |||||||||||||||||||||||||||
Sunset Gower Studios—Development(4) | Office/Studio | Hollywood | 478,845 | TBD | TBD | |||||||||||||||||||||||||||
Sunset Bronson Studios Lot D—Development(4) | Residential | Hollywood | 33 units/19,816 | TBD | TBD | |||||||||||||||||||||||||||
Element LA—Development | Office | West Los Angeles | 500,000 | TBD | TBD | |||||||||||||||||||||||||||
10900/10950 Washington(5) | Residential | West Los Angeles | N/A | TBD | TBD | |||||||||||||||||||||||||||
Vancouver, British Columbia | ||||||||||||||||||||||||||||||||
Burrard Exchange(6) | Office | Downtown Vancouver | 450,000 | TBD | TBD | |||||||||||||||||||||||||||
Greater London, United Kingdom | ||||||||||||||||||||||||||||||||
Sunset Waltham Cross Studios(7) | Studio | Broxbourne | 1,167,347 | TBD | TBD | |||||||||||||||||||||||||||
Total Future Development Pipeline | 3,233,589 | |||||||||||||||||||||||||||||||
TOTAL UNDER CONSTRUCTION AND FUTURE DEVELOPMENT | 4,252,589 |
Location | Submarket | Square Feet | ||||||||||||
Repositioning: | ||||||||||||||
899 Howard | San Francisco | 96,240 | ||||||||||||
Page Mill Center | Palo Alto | 79,056 | ||||||||||||
Rincon Center | San Francisco | 36,905 | ||||||||||||
Metro Plaza | North San Jose | 28,415 | ||||||||||||
Sunset Las Palmas Studios | Hollywood | 18,594 | ||||||||||||
Palo Alto Square | Palo Alto | 12,740 | ||||||||||||
Sunset Gower Studios | Hollywood | 6,650 | ||||||||||||
TOTAL REPOSITIONING | 278,600 |
HPP’s Share | |||||||||||||||||||||||||||||
Year of Lease Expiration | # of Leases Expiring(1) | Square Feet Expiring | Square Footage of Expiring Lease | % of Office Portfolio Square Feet | Annualized Base Rent(2) | % of Office Portfolio Annualized Base Rent | Annualized Base Rent Per Leased Square Foot(2) | Annualized Base Rent at Expiration(2) | Annualized Base Rent Per Lease Square Foot at Expiration(3) | ||||||||||||||||||||
Vacant | 3,495,318 | 3,364,809 | 27.1 | % | |||||||||||||||||||||||||
Q1-2024 | 12 | 105,338 | 99,537 | 0.8 | $ | 5,798,581 | 1.1 | % | $ | 58.26 | $ | 5,798,581 | $ | 58.26 | |||||||||||||||
Q2-2024 | 33 | 396,951 | 352,557 | 2.8 | 17,175,307 | 3.3 | 48.72 | 17,397,996 | 49.35 | ||||||||||||||||||||
Q3-2024 | 38 | 248,296 | 227,624 | 1.8 | 14,021,318 | 2.7 | 61.60 | 14,217,239 | 62.46 | ||||||||||||||||||||
Q4-2024 | 70 | 515,137 | 481,577 | 4.0 | 29,981,402 | 5.6 | 62.26 | 30,483,494 | 63.30 | ||||||||||||||||||||
Total 2024 | 153 | 1,265,722 | 1,161,295 | 9.4 | 66,976,608 | 12.7 | 57.67 | 67,897,310 | 58.47 | ||||||||||||||||||||
2025 | 174 | 1,931,695 | 1,715,751 | 13.8 | 102,537,718 | 19.5 | 59.76 | 105,195,875 | 61.31 | ||||||||||||||||||||
2026 | 106 | 744,270 | 679,526 | 5.5 | 41,916,185 | 7.9 | 61.68 | 44,435,466 | 65.39 | ||||||||||||||||||||
2027 | 117 | 1,104,363 | 943,698 | 7.6 | 57,851,603 | 11.0 | 61.30 | 62,508,568 | 66.24 | ||||||||||||||||||||
2028 | 71 | 1,206,876 | 1,006,221 | 8.1 | 71,740,077 | 13.6 | 71.30 | 79,031,491 | 78.54 | ||||||||||||||||||||
2029 | 54 | 574,895 | 447,305 | 3.6 | 31,145,452 | 5.9 | 69.63 | 33,894,537 | 75.78 | ||||||||||||||||||||
2030 | 25 | 1,649,016 | 1,285,651 | 10.4 | 68,704,894 | 13.0 | 53.44 | 80,110,160 | 62.31 | ||||||||||||||||||||
2031 | 19 | 1,068,700 | 654,778 | 5.3 | 38,188,055 | 7.2 | 58.32 | 48,410,702 | 73.93 | ||||||||||||||||||||
2032 | 10 | 245,879 | 143,943 | 1.2 | 8,507,255 | 1.6 | 59.10 | 10,781,160 | 74.90 | ||||||||||||||||||||
2033 | 16 | 632,148 | 451,416 | 3.6 | 23,524,552 | 4.5 | 52.11 | 29,721,084 | 65.84 | ||||||||||||||||||||
Thereafter | 18 | 268,335 | 139,315 | 1.1 | 7,115,810 | 1.3 | 51.08 | 10,272,725 | 73.74 | ||||||||||||||||||||
Building management use(4) | 45 | 240,002 | 213,106 | 1.7 | — | — | — | — | — | ||||||||||||||||||||
Signed leases not commenced | 31 | 208,475 | 198,200 | 1.6 | 9,375,481 | 1.8 | 47.30 | 10,505,999 | 53.01 | ||||||||||||||||||||
Portfolio Total/Weighted Average | 839 | 14,635,694 | 12,405,014 | 100.0 | % | $ | 527,583,690 | 100.0 | % | $ | 58.36 | $ | 582,765,077 | $ | 64.46 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Renewals(1) | |||||||||||
Number of leases | 40 | 39 | |||||||||
Square feet | 215,556 | 195,417 | |||||||||
Tenant improvement costs per square foot(2)(3) | $ | 26.96 | $ | 11.24 | |||||||
Leasing commission costs per square foot(2) | 10.61 | 4.63 | |||||||||
Total tenant improvement and leasing commission costs(2) | $ | 37.57 | $ | 15.87 | |||||||
New leases(4) | |||||||||||
Number of leases | 33 | 36 | |||||||||
Square feet | 293,059 | 148,652 | |||||||||
Tenant improvement costs per square foot(2)(3) | $ | 40.86 | $ | 66.67 | |||||||
Leasing commission costs per square foot(2) | 13.33 | 14.39 | |||||||||
Total tenant improvement and leasing commission costs(2) | $ | 54.19 | $ | 81.06 | |||||||
TOTAL | |||||||||||
Number of leases | 73 | 75 | |||||||||
Square feet | 508,615 | 344,069 | |||||||||
Tenant improvement costs per square foot(2)(3) | $ | 35.39 | $ | 36.39 | |||||||
Leasing commission costs per square foot(2) | 12.26 | 9.06 | |||||||||
TOTAL TENANT IMPROVEMENT AND LEASING COMMISSION COSTS(2) | $ | 47.65 | $ | 45.45 |
Three Months Ended March 31, | Dollar Change | Percent Change | |||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Net loss | $ | (53,355) | $ | (14,817) | $ | (38,538) | 260.1 | % | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Loss from unconsolidated real estate entities | 743 | 745 | (2) | (0.3) | |||||||||||||||||||
Fee income | (1,125) | (2,402) | 1,277 | (53.2) | |||||||||||||||||||
Interest expense | 44,089 | 53,807 | (9,718) | (18.1) | |||||||||||||||||||
Interest income | (854) | (371) | (483) | 130.2 | |||||||||||||||||||
Management services reimbursement income—unconsolidated real estate entities | (1,156) | (1,064) | (92) | 8.6 | |||||||||||||||||||
Management services expense—unconsolidated real estate entities | 1,156 | 1,064 | 92 | 8.6 | |||||||||||||||||||
Transaction-related expenses | 2,150 | 1,186 | 964 | 81.3 | |||||||||||||||||||
Unrealized loss (gain) on non-real estate investments | 898 | (839) | 1,737 | (207.0) | |||||||||||||||||||
Gain on sale of real estate | — | (7,046) | 7,046 | (100.0) | |||||||||||||||||||
Other income | (143) | (5,161) | 5,018 | (97.2) | |||||||||||||||||||
General and administrative | 19,710 | 18,724 | 986 | 5.3 | |||||||||||||||||||
Depreciation and amortization | 91,854 | 97,139 | (5,285) | (5.4) | |||||||||||||||||||
NOI | $ | 103,967 | $ | 140,965 | $ | (36,998) | (26.2) | % | |||||||||||||||
Same-store NOI | $ | 105,395 | $ | 125,020 | $ | (19,625) | (15.7) | % | |||||||||||||||
Non-same-store NOI | (1,428) | 15,945 | (17,373) | (109.0) | |||||||||||||||||||
NOI | $ | 103,967 | $ | 140,965 | $ | (36,998) | (26.2) | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Same-store office | |||||||||||
Number of properties | 41 | 41 | |||||||||
Rentable square feet | 11,572,070 | 11,572,070 | |||||||||
Ending % leased | 79.0 | % | 87.2 | % | |||||||
Ending % occupied | 77.7 | % | 85.8 | % | |||||||
Average % occupied for the period | 78.1 | % | 85.2 | % | |||||||
Average annual rental rate per square foot | $ | 59.32 | $ | 57.65 | |||||||
Same-store studio | |||||||||||
Number of properties | 3 | 3 | |||||||||
Rentable square feet | 1,231,278 | 1,231,278 | |||||||||
Average % leased for the period(1) | 76.9 | % | 86.3 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||||||||||||||
Same-Store | Non-Same-Store | Total | Same-Store | Non-Same-Store | Total | ||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||||||
Rental | $ | 161,433 | $ | 9,994 | $ | 171,427 | $ | 176,818 | $ | 25,839 | $ | 202,657 | |||||||||||||||||||||||
Service and other revenues | 3,626 | 22 | 3,648 | 3,958 | 18 | 3,976 | |||||||||||||||||||||||||||||
Total office revenues | 165,059 | 10,016 | 175,075 | 180,776 | 25,857 | 206,633 | |||||||||||||||||||||||||||||
Studio | |||||||||||||||||||||||||||||||||||
Rental | 10,770 | 2,830 | 13,600 | 13,470 | 2,783 | 16,253 | |||||||||||||||||||||||||||||
Service and other revenues | 8,556 | 16,792 | 25,348 | 8,919 | 20,458 | 29,377 | |||||||||||||||||||||||||||||
Total studio revenues | 19,326 | 19,622 | 38,948 | 22,389 | 23,241 | 45,630 | |||||||||||||||||||||||||||||
Total revenues | 184,385 | 29,638 | 214,023 | 203,165 | 49,098 | 252,263 | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Office operating expenses | 67,397 | 5,550 | 72,947 | 66,114 | 7,940 | 74,054 | |||||||||||||||||||||||||||||
Studio operating expenses | 11,593 | 25,516 | 37,109 | 12,031 | 25,213 | 37,244 | |||||||||||||||||||||||||||||
Total operating expenses | 78,990 | 31,066 | 110,056 | 78,145 | 33,153 | 111,298 | |||||||||||||||||||||||||||||
Office NOI | 97,662 | 4,466 | 102,128 | 114,662 | 17,917 | 132,579 | |||||||||||||||||||||||||||||
Studio NOI | 7,733 | (5,894) | 1,839 | 10,358 | (1,972) | 8,386 | |||||||||||||||||||||||||||||
NOI | $ | 105,395 | $ | (1,428) | $ | 103,967 | $ | 125,020 | $ | 15,945 | $ | 140,965 |
Three Months Ended March 31, 2024 as compared to Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||
Same-Store | Non-Same-Store | Total | |||||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||||||
Rental | $ | (15,385) | (8.7) | % | $ | (15,845) | (61.3) | % | $ | (31,230) | (15.4) | % | |||||||||||||||||||||||
Service and other revenues | (332) | (8.4) | 4 | 22.2 | (328) | (8.2) | |||||||||||||||||||||||||||||
Total office revenues | (15,717) | (8.7) | (15,841) | (61.3) | (31,558) | (15.3) | |||||||||||||||||||||||||||||
Studio | |||||||||||||||||||||||||||||||||||
Rental | (2,700) | (20.0) | 47 | 1.7 | (2,653) | (16.3) | |||||||||||||||||||||||||||||
Service and other revenues | (363) | (4.1) | (3,666) | (17.9) | (4,029) | (13.7) | |||||||||||||||||||||||||||||
Total studio revenues | (3,063) | (13.7) | (3,619) | (15.6) | (6,682) | (14.6) | |||||||||||||||||||||||||||||
Total revenues | (18,780) | (9.2) | (19,460) | (39.6) | (38,240) | (15.2) | |||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Office operating expenses | 1,283 | 1.9 | (2,390) | (30.1) | (1,107) | (1.5) | |||||||||||||||||||||||||||||
Studio operating expenses | (438) | (3.6) | 303 | 1.2 | (135) | (0.4) | |||||||||||||||||||||||||||||
Total operating expenses | 845 | 1.1 | (2,087) | (6.3) | (1,242) | (1.1) | |||||||||||||||||||||||||||||
Office NOI | (17,000) | (14.8) | (13,451) | (75.1) | (30,451) | (23.0) | |||||||||||||||||||||||||||||
Studio NOI | (2,625) | (25.3) | (3,922) | 198.9 | (6,547) | (78.1) | |||||||||||||||||||||||||||||
NOI | $ | (19,625) | (15.7) | % | $ | (17,373) | (109.0) | % | $ | (36,998) | (26.2) | % |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||
Gross interest expense(1) | $ | 50,656 | $ | 53,298 | $ | (2,642) | (5.0) | % | |||||||||||||||
Capitalized interest | (8,482) | (6,862) | (1,620) | 23.6 | |||||||||||||||||||
Non-cash interest expense(2) | 1,915 | 7,371 | (5,456) | (74.0) | |||||||||||||||||||
TOTAL | $ | 44,089 | $ | 53,807 | $ | (9,718) | (18.1) | % |
Loan | Total Borrowing Capacity | Amount Drawn | Remaining Borrowing Capacity | |||||||||||||||||
Unsecured revolving credit facility | $ | 900,000 | $ | 280,000 | $ | 620,000 | ||||||||||||||
Sunset Glenoaks construction loan(1) | $ | 50,300 | $ | 42,430 | $ | 7,870 | ||||||||||||||
Bentall Centre(1) | $ | 97,736 | $ | 94,055 | $ | 3,681 | ||||||||||||||
Sunset Pier 94 Studios construction loan(1) | $ | 46,810 | $ | 26 | $ | 46,784 |
Market Capitalization | ||||||||
Unsecured and secured debt(1) | $ | 4,048,067 | ||||||
Series A redeemable preferred units | 9,815 | |||||||
Total consolidated debt | 4,057,882 | |||||||
Equity capitalization(2) | 1,402,655 | |||||||
TOTAL CONSOLIDATED MARKET CAPITALIZATION | $ | 5,460,537 | ||||||
Total consolidated debt/total consolidated market capitalization | 74.3 | % |
March 31, 2024 | December 31, 2023 | ||||||||||
Unsecured debt | $ | 2,395,000 | $ | 2,307,000 | |||||||
Secured debt | $ | 1,653,067 | $ | 1,653,067 | |||||||
Joint venture partner debt | $ | 66,136 | $ | 66,136 |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | Dollar Change | Percent Change | ||||||||||||||||||||
Net cash provided by operating activities | $ | 65,128 | $ | 92,516 | $ | (27,388) | (29.6) | % | |||||||||||||||
Net cash (used in) provided by investing activities | $ | (71,360) | $ | 10,499 | $ | (81,859) | (779.7) | % | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 20,648 | $ | (205,848) | $ | 226,496 | (110.0) | % |
Ownership Interest | Amount Drawn | Undrawn Capacity | Total Capacity | Interest Rate | Contractual Maturity Date | ||||||||||||||||||||||||||||||
Bentall Centre(1) | 20 | % | $ | 470,273 | $ | 18,408 | $ | 488,680 | CORRA + 2.30% | 7/1/2027 | |||||||||||||||||||||||||
Sunset Glenoaks Studios(2) | 50 | % | $ | 84,859 | $ | 15,741 | $ | 100,600 | SOFR + 3.10% | 1/9/2027 | |||||||||||||||||||||||||
Sunset Pier 94 Studios(3) | 26 | % | $ | 100 | $ | 183,100 | $ | 183,200 | SOFR + 4.75% | 9/9/2028 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net loss | $ | (53,355) | $ | (14,817) | |||||||
Adjustments: | |||||||||||
Depreciation and amortization—consolidated | 91,854 | 97,139 | |||||||||
Depreciation and amortization—non-real estate assets | (7,981) | (8,392) | |||||||||
Depreciation and amortization—HPP’s share from unconsolidated real estate entities | 1,151 | 1,263 | |||||||||
Gain on sale of real estate | — | (7,046) | |||||||||
Unrealized loss (gain) on non-real estate investments | 898 | (839) | |||||||||
FFO attributable to non-controlling interests | (5,326) | (13,637) | |||||||||
FFO attributable to preferred shares and units | (5,200) | (5,200) | |||||||||
FFO TO COMMON STOCKHOLDERS AND UNITHOLDERS | $ | 22,041 | $ | 48,471 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Shares Purchased as Part of Publicly Announced Plans or Programs(1) | Maximum That May Yet Be Purchased Under The Plans or Programs(2) | |||||||||||||||||||
January 1 - January 31, 2024 | 52,631 | (3) | $ | 9.31 | (4) | — | $ | 35,250,164 | |||||||||||||||
February 1 - February 29, 2024 | 19,526 | (3) | $ | 6.50 | (4) | — | $ | 35,250,164 | |||||||||||||||
TOTAL | 72,157 | $ | 8.55 | — |
Incorporated by Reference | ||||||||||||||||||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
3.1 | S-11/A | 333-164916 | 3.1 | May 12, 2010 | ||||||||||||||||||||||||||||
3.2 | 8-K | 001-34789 | 3.1 | January 12, 2015 | ||||||||||||||||||||||||||||
3.3 | 8-K | 001-34789 | 3.1 | March 22, 2022 | ||||||||||||||||||||||||||||
3.4 | 8-K | 001-34789 | 3.2 | November 16, 2021 | ||||||||||||||||||||||||||||
3.5 | 10-Q | 001-34789 | 3.4 | November 4, 2016 | ||||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||||||||
31.3 | ||||||||||||||||||||||||||||||||
31.4 | ||||||||||||||||||||||||||||||||
32.1 | ||||||||||||||||||||||||||||||||
32.2 | ||||||||||||||||||||||||||||||||
101 | The following financial information from Hudson Pacific Properties, Inc.’s and Hudson Pacific Properties, L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Loss (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited), (vi) Consolidated Statements of Cash Flows (unaudited) and (vii) Notes to Unaudited Consolidated Financial Statements* | |||||||||||||||||||||||||||||||
104 |
* | Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. | |||||||||||||||||||||||||||||||
** | Denotes a management contract or compensatory plan or arrangement. | |||||||||||||||||||||||||||||||
+ | Filed herewith. |
HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) |
HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer (Principal Financial Officer) |
HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) |
HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer (Principal Financial Officer) |
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer |
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer |
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer |
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer |
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer | |||||||||||
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer |
Date: | May 3, 2024 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer Hudson Pacific Properties, Inc., sole general partner of Hudson Pacific Properties, L.P. | |||||||||||
Date: | May 3, 2024 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer Hudson Pacific Properties, Inc., sole general partner of Hudson Pacific Properties, L.P. |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 481,600,000 | 481,600,000 |
Common stock/units, outstanding (in shares) | 141,144,592 | 141,034,806 |
4.750% Series C Cumulative Redeemable Preferred Stock | ||
Interest rate of preferred stock (as a percent) | 4.75% | 4.75% |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 |
Preferred stock, authorized (in shares) | 18,400,000 | 18,400,000 |
Preferred stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
CONSOLIDATED BALANCE SHEETS L.P. (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Common Stock: | ||
Common stock/units, outstanding (in shares) | 141,144,592 | 141,034,806 |
4.750% Series C Cumulative Redeemable Preferred Stock | ||
Common Stock: | ||
Interest rate of preferred stock (as a percent) | 4.75% | 4.75% |
Liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 |
Preferred stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
Hudson Pacific Partners L.P. | ||
Common Stock: | ||
Common stock/units, outstanding (in shares) | 144,822,419 | 143,845,239 |
Hudson Pacific Partners L.P. | 4.750% Series C Cumulative Redeemable Preferred Stock | ||
Common Stock: | ||
Interest rate of preferred stock (as a percent) | 4.75% | 4.75% |
Liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 |
Preferred stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
Organization |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. The Company’s portfolio consists of properties primarily located throughout the United States, Western Canada and Greater London, United Kingdom. The following table summarizes the Company’s portfolio as of March 31, 2024:
__________________ 1.The Company owns 20% of the unconsolidated joint venture entity that owns the Bentall Centre property, 50% of the unconsolidated joint venture entity that owns Sunset Glenoaks Studios, 35% of the unconsolidated joint venture entity that owns Sunset Waltham Cross Studios and approximately 26% of the unconsolidated joint venture entity that owns the Sunset Pier 94 Studios development. The square footage shown above represents 100% of the properties. 2.Includes Bentall Centre. 3.Includes Sunset Glenoaks Studios and Sunset Pier 94 Studios. 4.Includes land for the Burrard Exchange and Sunset Waltham Cross Studios.
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Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2023 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto. The Company has reclassified a loss on derivatives of $3.8 million from loss on derivatives to non-cash interest expense on the Consolidated Statement of Cash Flows for the three months ended March 31, 2023 to conform to the presentation for the three months ended March 31, 2024. Principles of Consolidation The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: •the characteristics of a controlling financial interest; •sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or •the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of March 31, 2024, the Company has determined that its operating partnership and 19 joint ventures met the definition of a VIE. 12 of these joint ventures are consolidated and seven are unconsolidated. Consolidated Joint Ventures During the three months ended March 31, 2024, the Company purchased a 45% ownership interest in Hudson 1455 Market, L.P., a consolidated joint venture, from its joint venture partner for $43.5 million. Following the transaction, the Company owns 100% of the ownership interests in Hudson 1455 Market, L.P. As of March 31, 2024, the operating partnership has determined that 12 of its joint ventures met the definition of a VIE and are consolidated:
__________________ 1.HPP-MAC WSP, LLC owned 100% of the One Westside and Westside Two properties prior to their sale in December 2023. 2.Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 3.Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). As of March 31, 2024 and December 31, 2023, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company. Unconsolidated Joint Ventures As of March 31, 2024, the Company has determined it is not the primary beneficiary of seven of its joint ventures that are VIEs. Due to its significant influence over the unconsolidated entities, the Company accounts for them using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment in its unconsolidated joint ventures is reflected within investment in unconsolidated real estate entities on the Consolidated Balance Sheets. The Company’s share of net income or loss from the joint ventures is included within (loss) income from unconsolidated real estate entities on the Consolidated Statements of Operations. The Company uses the cumulative earnings approach for determining cash flow presentation of distributions from unconsolidated joint ventures. Under this approach, distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and those in excess of that amount are classified as cash inflows from investing activities. Refer to Note 5 for further details regarding our investments in unconsolidated joint ventures. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring and assessing the carrying values of its real estate properties, the fair value measurement of contingent consideration, assets acquired and liabilities assumed in business combination transactions, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and the valuation of performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Lease Accounting The Company accounts for its leases under Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), which requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases, sound stage leases, office leases and other facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company makes an accounting policy election, by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and lease liabilities was 5.6% as of March 31, 2024. ROU assets include any lease payments made and exclude lease incentives. ROU assets acquired in connection with business combination transactions are also adjusted for above- and below- market lease terms. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 22 years as of March 31, 2024. Lessor Accounting The presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income.
The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues include parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues, other revenues, management fee income and management services reimbursement income are accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606 for the three months ended March 31, 2024 and 2023:
The following table summarizes the Company’s receivables that are accounted for under ASC 606 as of:
In regard to sales of real estate, the Company applies certain recognition and measurement principles in accordance with ASC 606. The Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract includes ongoing involvement with the sold property by the seller, the seller must evaluate each promised good or service under the contract to determine whether it represents a performance obligation, constitutes a guarantee or prevents the transfer of control. The timing and pattern of revenue recognition might change as it relates to gains on sale of real estate if the sale includes continued involvement that represents a separate performance obligation. Acquisitions The Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. The difference between the fair value of the consideration transferred for the acquisition and the fair value of the net assets acquired is recorded as goodwill and acquisition-related expenses arising from the transaction are expensed as incurred. The Company includes the results of operations of the businesses that it acquires beginning on the acquisition date. The Company applies a cost accumulation and allocation model to acquisitions that meet the definition of an asset acquisition. Under this model, the purchase price is allocated based on the relative fair value of the assets acquired and liabilities assumed. Additionally, acquisition-related expenses associated with an asset acquisition are capitalized as part of the purchase price. Goodwill and Acquired Intangible Assets Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired and liabilities assumed. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit to which it is assigned, which can be an operating segment or one level below an operating segment. The Company has three operating segments: the management entity, Office and Studio, each of which is a reporting unit. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. If so, a quantitative assessment is performed, and to the extent the carrying value of the reporting unit exceeds its fair value, impairment is recognized for the excess up to the amount of goodwill assigned to the reporting unit. Alternatively, the Company may bypass a qualitative assessment and proceed directly to a quantitative assessment. A qualitative assessment considers various factors such as macroeconomic, industry and market conditions to the extent they affect the earnings performance of the reporting unit, changes in business strategy and/or management of the reporting unit, changes in composition or mix of revenues and/or cost structure of the reporting unit, financial performance and business prospects of the reporting unit, among other factors. In a quantitative assessment, significant judgment, assumptions and estimates are applied in determining the fair value of reporting units. The Company generally uses the income approach to estimate fair value by discounting the projected net cash flows of the reporting unit, and may corroborate with market-based data where available and appropriate. Projection of future cash flows is based upon various factors, including, but not limited to, our strategic plans in regard to our business and operations, internal forecasts, terminal year residual revenue multiples, operating profit margins, pricing of similar businesses and comparable transactions where applicable, and risk-adjusted discount rates to present value future cash flows. Given the level of sensitivity in the inputs, a change in the value of any one input, in isolation or in combination, could significantly affect the overall estimation of fair value of the reporting unit. As of March 31, 2024 and December 31, 2023, the carrying value of goodwill was $264.1 million. Goodwill was not impaired as of March 31, 2024. Intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method, which reflects the pattern in which the assets are consumed. The estimated useful lives for acquired intangible assets range from to seven years. The Company assesses its intangible assets with finite lives for impairment when indicators of impairment are identified. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit and loss, as well as the title and position of the CODM. The amendments are effective for the Company's annual periods beginning June 1, 2024, and interim periods beginning June 1, 2025, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company’s annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements.
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Investment in Real Estate |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of:
Acquisitions of Real Estate The Company had no acquisitions of real estate during the three months ended March 31, 2024. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based on Level 1 or Level 2 inputs. The Company had no impairments of real estate during the three months ended March 31, 2024 and 2023. Dispositions of Real Estate The Company had no dispositions of real estate during the three months ended March 31, 2024. The following table summarizes information on the disposition of a property considered non-strategic to the Company’s portfolio completed during the three months ended March 31, 2023:
__________________ 1.Represents gross sales price before certain credits, prorations and closing costs. 2.Included within gain (loss) on sale of real estate on the Consolidated Statement of Operations.
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Non-Real Estate Property, Plant and Equipment, net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Real Estate Property, Plant and Equipment, net | Non-Real Estate Property, Plant and Equipment, net The following table summarizes the Company’s non-real estate property, plant and equipment, net as of:
Non-real estate property, plant and equipment is carried at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets, which range from to 20 years. The Company evaluates its non-real estate property, plant and equipment, net for impairment using the same accounting model that it applies to its real estate assets and related intangibles. See Note 2 for details. The Company did not recognize any impairment charges for non-real estate property, plant and equipment during the three months ended March 31, 2024 and 2023.
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Investment in Unconsolidated Real Estate Entities |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated Real Estate Entities | Investment in Unconsolidated Real Estate Entities The following table summarizes the Company’s investments in unconsolidated joint ventures:
__________________ 1.The Company owns 35% of the ownership interests in each of the joint venture entities that own the Sunset Waltham Cross Studios and the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2.The Company serves as the operating member of this joint venture. 3.The Company has provided various guarantees for this joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024. 4.The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $94.1 million at Bentall Centre and $26 thousand at Sunset Pier 94 Studios, respectively. The likelihood of loss relating to the guarantees is remote as of March 31, 2024. 5.As of August 28, 2023, the Company owns 51% of the ownership interests in an upper-tier joint venture entity that owns 50.1% of the ownership interests in the lower-tier joint venture entity that owns the Sunset Pier 94 Studios development. The Company’s resulting economic interest in the development is 25.6%. The Company has provided various guarantees for the lower-tier joint venture’s construction loan, including a completion guarantee, recourse guarantee and guaranty of interest and carry. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024. The Company’s maximum exposure related to its unconsolidated joint ventures is limited to its investment and the guarantees provided in relation to the joint ventures’ indebtedness. The Company’s investments in foreign real estate entities are subject to foreign currency fluctuation risk. Such investments are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. The Company’s share of the (loss) income from foreign unconsolidated real estate entities is translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive income (loss) as a separate component of total equity and are excluded from net (loss) income. The Company held ownership interests in other immaterial unconsolidated joint ventures in the total of $0.4 million and $0.1 million as of March 31, 2024 and December 31, 2023, respectively. The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures:
__________________ 1.To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in the loss from unconsolidated real estate entities line item on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures:
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Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net | Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net The following summarizes the Company’s deferred leasing costs and intangibles as of:
The Company recognized the following amortization related to deferred leasing costs and intangibles:
__________________ 1.Amortization is recorded in depreciation and amortization expenses and for lease incentive costs in office rental revenues on the Consolidated Statements of Operations. 2.Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3.Amortization is recorded in office rental revenues on the Consolidated Statements of Operations.
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Receivables |
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Mar. 31, 2024 | |
Receivables [Abstract] | |
Receivables | Receivables The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts related to receivables are discussed in the Company’s 2023 Annual Report on Form 10-K. Accounts Receivable As of March 31, 2024, accounts receivable was $24.7 million and there was a $0.7 million allowance for doubtful accounts. As of December 31, 2023, accounts receivable was $25.0 million and there was a $0.4 million allowance for doubtful accounts. Straight-Line Rent Receivables As of March 31, 2024, straight-line rent receivables was $217.7 million and there was no allowance for doubtful accounts. As of December 31, 2023, straight-line rent receivables was $220.8 million and there was no allowance for doubtful accounts.
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Prepaid Expenses and Other Assets, net |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net The following table summarizes the Company’s prepaid expenses and other assets, net as of:
Non-Real Estate Investments The Company measures its investments in common stock and convertible preferred stock at fair value based on Level 1 and Level 2 inputs, respectively. The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value (“NAV”) practical expedient and uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value of the investment. Changes in the fair value of these non-real estate investments are included in unrealized (loss) gain on non-real estate investments on the Consolidated Statements of Operations. During the three months ended March 31, 2024 and 2023, the Company recognized an unrealized loss of $0.9 million and an unrealized gain of $0.9 million, respectively, on its non-real estate investments due to the changes in fair value.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following table sets forth information with respect to the Company’s outstanding indebtedness:
_________________ 1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2024, which may be different than the interest rates as of December 31, 2023 for corresponding indebtedness. 2.Maturity dates include the effect of extension options. 3.The annual facility fee rate ranges from 0.15% or 0.30% based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2024, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.35%. 4.The Company has a total capacity of $900.0 million available under its unsecured revolving credit facility, up to $225.0 million of which can be used for borrowings in pounds sterling or Canadian dollars. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan. 5.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 6.An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects. 7.Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. The first extension option was executed as of August 9, 2023. 8.The Company purchased bonds comprising the loan in the amount of $30.2 million. 9.The floating interest rate on $539.0 million of principal has been capped at 5.70% through the use of an interest rate cap. The floating interest rate on $531.2 million of principal is effectively fixed at 3.31% through the use of an interest rate swap. The floating interest rate on $180.0 million of principal is effectively fixed at 4.13% through the use of an interest rate swap. 10.This loan is interest-only through its term. The floating interest rate on $141.4 million of principal has been capped at 5.00% through the use of an interest rate cap. The floating interest rate on the remaining $172.9 million of principal has been effectively fixed at 3.75% through the use of an interest rate swap. 11.This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 12.Excludes deferred financing costs related to the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See Note 8 for details. 13.This amount relates to debt attributable to Allianz U.S. Private REIT LP (“Allianz”), the Company’s partner in the joint venture that owns the Ferry Building property. 14.Includes the option to extend the initial maturity date of October 9, 2028 twice for an additional two-year term each. Current Year Activity During the three months ended March 31, 2024, there were $88.0 million of borrowings on the unsecured revolving credit facility, net of repayments. The Company generally uses the unsecured revolving credit facility to finance the acquisition of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes. Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. Loan agreements include events of default that the Company believes are usual for loans and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans. The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (after the impact of extension options, if applicable) as of March 31, 2024:
Debt Covenants The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants. The following table summarizes existing covenants and their covenant levels as of March 31, 2024 related to our unsecured revolving credit facility and term loans:
The following table summarizes existing covenants and their covenant levels as of March 31, 2024 related to our private placement notes:
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the Series B, Series C and Series D notes. The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of March 31, 2024:
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes, 4.65% Senior Notes and 5.95% Senior Notes. The operating partnership was in compliance with its financial covenants as of March 31, 2024. Repayment Guarantees Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. The Company and certain of its subsidiaries guarantee the operating partnership’s unsecured debt. The likelihood of loss relating to this guarantee is remote as of March 31, 2024. Interest Expense The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations:
_________________ 1.Includes interest on the Company’s debt and hedging activities. 2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. Derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of March 31, 2024 and December 31, 2023:
__________________ 1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting. 2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio caps that are not designated as cash flow hedges for accounting purposes. The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2024, the Company expects $8.1 million of unrealized gain included in accumulated other comprehensive income will be reclassified as a reduction to interest expense in the next 12 months.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. Provided that it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate-level income tax on the earnings distributed currently to its stockholders. In general, the Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market, Hill7, Ferry Building and 1918 Eighth properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. In the case of the Bentall Centre property and the Sunset Waltham Cross Studios development, the Company owns its interest in the properties through non-U.S. entities treated as TRSs for federal income tax purposes. The Company has elected, together with certain of its subsidiaries, to treat each such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. The Company recognized no income tax benefit or provision during the three months ended March 31, 2024. During the three months ended March 31, 2023, the Company recognized an income tax benefit of $5.3 million within other income on the Consolidated Statement of Operations. Deferred tax assets and liabilities are recognized for the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. A valuation allowance is recognized when it is determined that it is more likely than not that a deferred tax asset will not be realized. The following table presents the components of the deferred tax liabilities, net recognized on the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:
__________________ 1.Deferred tax assets, net are recorded within prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2.Deferred tax liabilities, net are recorded within accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3.Significant components of the Company’s deferred tax assets and liabilities relate to depreciation and amortization, unrealized gains and losses on non-real estate investments and net operating loss carryforwards. The Company is subject to the statutory requirements of the states in which it conducts business. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2024, the Company has not established a liability for uncertain tax positions. The Company and certain of its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRSs are no longer subject to tax examinations by tax authorities for years prior to 2019. The Company has assessed its tax positions for all open years, which as of March 31, 2024 included 2020 to 2022 for federal purposes and 2019 to 2022 for state purposes, and concluded that there are no material uncertainties to be recognized.
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Future Minimum Rents and Lease Payments |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2040. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2024:
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 17 other leases as of March 31, 2024. The Company’s operating lease obligations have expiration dates ranging from 2024 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of March 31, 2024, the present value of the remaining contractual payments of $704.9 million under the Company’s operating lease agreements was $384.0 million. The corresponding operating lease right-of-use assets amounted to $370.1 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of March 31, 2024:
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
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Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2040. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2024:
Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 17 other leases as of March 31, 2024. The Company’s operating lease obligations have expiration dates ranging from 2024 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of March 31, 2024, the present value of the remaining contractual payments of $704.9 million under the Company’s operating lease agreements was $384.0 million. The corresponding operating lease right-of-use assets amounted to $370.1 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of March 31, 2024:
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: •Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; •Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and •Level 3: prices or valuation techniques where little or no market data is available that require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:
__________________ 1.Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2.Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3.According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Level 1 items include an investment in the common stock of a publicly traded company, which is valued on a quarterly basis using the closing stock price. Level 2 items include interest rate caps and swaps, which are valued on a quarterly basis using a linear regression model, as well as investments in preferred stock of a publicly traded company, which are valued on a quarterly basis using the closing stock price and a Black-Scholes model, respectively. Level 3 items include the earnout liability, which is valued on a quarterly basis using a probability-weighted discounted cash flow model. Inputs to the model include the discount rate and probability-weighted earnout payments based on a Monte Carlo simulation with one million trials. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. The following table summarizes changes in the carrying amount of the earnout liability during the three months ended March 31, 2024:
Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. The fair values of debt are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of:
_________________ 1.Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums.
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The Company’s 2010 Incentive Plan permits the Company’s board of directors (the “Board”) to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. As of March 31, 2024, 1.9 million common shares were available for grant under the 2010 Plan. The calculation of shares available for grant is determined after taking into account unvested restricted stock, unvested operating partnership performance units and unvested RSUs, assuming the maximum bonus pool eligible ultimately is earned and based on a stock price of $6.45. The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee Board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. Additionally, certain non-employee Board members elect to receive operating partnership performance units in lieu of their annual cash retainer fees. These awards are generally issued in the first quarter of the year subsequent to the year in which they were earned and are fully-vested upon their issuance. The Board awards time-based restricted stock units, including certain restricted stock unit grants that are settled in cash, or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the first or fourth quarter and vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is an executive officer. Lastly, certain employees elect to receive operating partnership performance units in lieu of their annual cash bonus. These awards are generally issued in the first quarter of the year subsequent to the year in which they were earned and are fully-vested upon their issuance. For the years 2020 through 2023, the compensation committee of the Board (the “Compensation Committee”) adopted an annual Hudson Pacific Properties, Inc. Performance Stock Unit Plan (“PSU Plan”). Under the PSU Plan, the Compensation Committee awarded restricted stock units or performance units in the operating partnership to certain employees. Annual PSU Plan grants made prior to 2023 consist of two portions. A portion of each award, the Relative Total Shareholder Return (“TSR”) Performance Unit, is eligible to vest based on the achievement of the Company’s TSR compared to the TSR of the FTSE NAREIT All Equity REITs index over a three-year performance period, with the vesting percentage subject to certain percentage targets. The remaining portion of each award, the Operational Performance Unit, becomes eligible to vest based on the achievement of operational performance metrics over a one-year performance period and vests over three years. The number of Operational Performance Units that becomes eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of absolute TSR goals over a three-year performance period by applying the applicable vesting percentages. The 2023 PSU Plan grants contain only an Operational Performance Unit, which is eligible to vest based on the achievement of operational metrics over a one-year performance period and vests over three years. The number of Operational Performance Units that becomes eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of the Company’s TSR compared to the TSR of the FTSE NAREIT All Equity REITs index over a three-year performance period. Certain of the awards granted under the PSU Plan are subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred. For 2024, the Compensation Committee adopted an annual equity award program for its top three executive officers consisting of a grant of time-based operating partnership performance units and a grant of market-based operating partnership performance units. The time-based awards vest in equal annual installments over the applicable service vesting period, which is five years. The market-based awards vest upon the satisfaction of both performance and service-based requirements. The quantity earned is based on the achievement of stock price performance hurdles over the five-year performance period commencing on the second anniversary of the grant date. The earned awards will satisfy the service-based requirement in increments of 60%, 20% and 20% on the third, fourth and fifth anniversaries of the grant date, respectively. The awards are also subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred. The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards:
_________________ 1.Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2.Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3.Part of the stock compensation amount incurred during the three months ended March 31, 2024 is settled in cash. The rest of the amount is recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three months ended March 31, 2024 and 2023, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net (loss) income available to common stockholders:
__________________ 1.The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The operating partnership calculates basic earnings per unit using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three months ended March 31, 2024 and 2023, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower earnings per unit amount. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net loss available to common unitholders:
__________________ 1.The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation.
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Redeemable Non-Controlling Interest |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redeemable Non-Controlling Interest | Redeemable Non-controlling Interest Redeemable Preferred Units of the Operating Partnership As of March 31, 2024 and December 31, 2023, there were 392,598 Series A preferred units of partnership interest in the operating partnership, or Series A preferred units, which are not owned by the Company. These Series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit. The units are convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock. Redeemable Non-controlling Interest in Consolidated Real Estate Entities On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building property. The Company has a 55% interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. Allianz has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable. The following table reconciles the beginning and ending balances of redeemable non-controlling interests:
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Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive (loss) income (“AOCI”):
__________________ 1.The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. The table below presents the activity related to Hudson Pacific Properties, L.P.’s AOCI:
__________________ 1.The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. Non-controlling Interests Common Units in the Operating Partnership Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such common units on a one-for-one basis. Performance Units in the Operating Partnership Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis. Ownership Interest in the Operating Partnership The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of:
_________________ 1.Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of March 31, 2024, this amount represents both common units and performance units of 550,969 and 3,126,858, respectively. As of December 31, 2023, this amount represents both common units and performance units in the amount of 550,969 and 2,259,464, respectively. Common Stock Activity The Company has not completed any common stock offerings during the three months ended March 31, 2024. The Company’s ATM program permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during the three months ended March 31, 2024. A cumulative total of $65.8 million has been sold as of March 31, 2024. Share Repurchase Program The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million under the share repurchase program. The Company did not utilize the share repurchase program during the three months ended March 31, 2024. Since commencement of the program, a cumulative total of $214.7 million has been repurchased. Share repurchases are accounted for on the trade date. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors. Series C Cumulative Redeemable Preferred Stock Series C cumulative redeemable preferred stock relates to the 17,000,000 shares of our Series C preferred stock, $0.01 par value per share. Holders of Series C preferred stock, when and as authorized by the Board, are entitled to cumulative cash dividends at the rate of 4.750% per annum of the $25.00 per share, equivalent to $1.1875 per annum per share. Dividends are payable quarterly in arrears on or about the last day of December, March, June and September of each year. In addition to other preferential rights, the holders of Series C preferred stock are entitled to receive the liquidation preference, which is $25.00 per share, before the holders of common stock in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company’s affairs. Generally, shares of Series C preferred stock are not redeemable by the Company prior to November 16, 2026. However, upon the occurrence of a change of control, holders of the Series C preferred stock will have the right, (unless the Company has elected to redeem the Series C preferred stock) to convert into a specified number of shares of common stock. Dividends The Board has historically declared dividends on a quarterly basis and the Company has paid the dividends during the quarters in which the dividends were declared. Declaration of any future dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and the risks affecting the Company’s business. The following table summarizes dividends per share declared and paid for the periods presented:
Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation.
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. The table below presents the operating activity of the Company’s reportable segments:
The table below is a reconciliation of net loss to total profit from all segments:
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain of its executive officers, effective January 1, 2020, that provide for various severance and change in control benefits and other terms and conditions of employment. Cost Reimbursements from Unconsolidated Real Estate Entities The Company is reimbursed for certain costs incurred in managing certain of its unconsolidated real estate entities. During the three months ended March 31, 2024, the Company recognized $1.2 million of reimbursement income in management services reimbursement income—unconsolidated real estate entities on the Consolidated Statement of Operations. During the three months ended March 31, 2023, the Company recognized $1.1 million of such reimbursement income. Related Party Leases The Company’s wholly-owned subsidiary is party to long-term operating lease agreements with an unconsolidated joint venture for office space and fitness and conference facilities. As of March 31, 2024, the Company’s right-of-use assets and lease liabilities related to these lease obligations were $5.8 million and $6.0 million, respectively, as compared to right-of-use assets and lease liabilities of $6.2 million and $6.4 million, respectively, as of December 31, 2023. During the three months ended March 31, 2024, the Company recognized $0.3 million of related rental expense in management services expense—unconsolidated real estate entities on the Consolidated Statement of Operations related to these leases. During the three months ended March 31, 2023, the Company recognized $0.2 million of related rental expense.
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Commitments and Contingencies |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fund Investments The Company invests in several non-real estate funds with an aggregate commitment to contribute up to $51.0 million. As of March 31, 2024, the Company has contributed $38.7 million to these funds, net of distributions, with $12.3 million remaining to be contributed. Legal From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of March 31, 2024, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Letters of Credit As of March 31, 2024, the Company had $3.1 million in outstanding letters of credit under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements. Contractual Obligations The Company has entered into a number of construction agreements related to its development activities at various properties and its obligations under executed leases. As of March 31, 2024, the Company had $89.7 million in related commitments.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. is included as follows:
Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc and Hudson Pacific Properties, L.P.:
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Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2023 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.
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Principles of Consolidation | Principles of Consolidation The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: •the characteristics of a controlling financial interest; •sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or •the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of March 31, 2024, the Company has determined that its operating partnership and 19 joint ventures met the definition of a VIE. 12 of these joint ventures are consolidated and seven are unconsolidated. As of March 31, 2024 and December 31, 2023, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company. Unconsolidated Joint Ventures As of March 31, 2024, the Company has determined it is not the primary beneficiary of seven of its joint ventures that are VIEs. Due to its significant influence over the unconsolidated entities, the Company accounts for them using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment in its unconsolidated joint ventures is reflected within investment in unconsolidated real estate entities on the Consolidated Balance Sheets. The Company’s share of net income or loss from the joint ventures is included within (loss) income from unconsolidated real estate entities on the Consolidated Statements of Operations. The Company uses the cumulative earnings approach for determining cash flow presentation of distributions from unconsolidated joint ventures. Under this approach, distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and those in excess of that amount are classified as cash inflows from investing activities. Refer to Note 5 for further details regarding our investments in unconsolidated joint ventures.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring and assessing the carrying values of its real estate properties, the fair value measurement of contingent consideration, assets acquired and liabilities assumed in business combination transactions, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and the valuation of performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.
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Lessee Accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases, sound stage leases, office leases and other facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company makes an accounting policy election, by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and lease liabilities was 5.6% as of March 31, 2024. ROU assets include any lease payments made and exclude lease incentives. ROU assets acquired in connection with business combination transactions are also adjusted for above- and below- market lease terms. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 22 years as of March 31, 2024.
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Lessor Accounting | Lessor Accounting The presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”).
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Revenue Recognition | Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income.
The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues include parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues, other revenues, management fee income and management services reimbursement income are accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered.In regard to sales of real estate, the Company applies certain recognition and measurement principles in accordance with ASC 606. The Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract includes ongoing involvement with the sold property by the seller, the seller must evaluate each promised good or service under the contract to determine whether it represents a performance obligation, constitutes a guarantee or prevents the transfer of control. The timing and pattern of revenue recognition might change as it relates to gains on sale of real estate if the sale includes continued involvement that represents a separate performance obligation.
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Acquisitions | Acquisitions The Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. The difference between the fair value of the consideration transferred for the acquisition and the fair value of the net assets acquired is recorded as goodwill and acquisition-related expenses arising from the transaction are expensed as incurred. The Company includes the results of operations of the businesses that it acquires beginning on the acquisition date. The Company applies a cost accumulation and allocation model to acquisitions that meet the definition of an asset acquisition. Under this model, the purchase price is allocated based on the relative fair value of the assets acquired and liabilities assumed. Additionally, acquisition-related expenses associated with an asset acquisition are capitalized as part of the purchase price.
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Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired and liabilities assumed. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit to which it is assigned, which can be an operating segment or one level below an operating segment. The Company has three operating segments: the management entity, Office and Studio, each of which is a reporting unit. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. If so, a quantitative assessment is performed, and to the extent the carrying value of the reporting unit exceeds its fair value, impairment is recognized for the excess up to the amount of goodwill assigned to the reporting unit. Alternatively, the Company may bypass a qualitative assessment and proceed directly to a quantitative assessment. A qualitative assessment considers various factors such as macroeconomic, industry and market conditions to the extent they affect the earnings performance of the reporting unit, changes in business strategy and/or management of the reporting unit, changes in composition or mix of revenues and/or cost structure of the reporting unit, financial performance and business prospects of the reporting unit, among other factors. In a quantitative assessment, significant judgment, assumptions and estimates are applied in determining the fair value of reporting units. The Company generally uses the income approach to estimate fair value by discounting the projected net cash flows of the reporting unit, and may corroborate with market-based data where available and appropriate. Projection of future cash flows is based upon various factors, including, but not limited to, our strategic plans in regard to our business and operations, internal forecasts, terminal year residual revenue multiples, operating profit margins, pricing of similar businesses and comparable transactions where applicable, and risk-adjusted discount rates to present value future cash flows. Given the level of sensitivity in the inputs, a change in the value of any one input, in isolation or in combination, could significantly affect the overall estimation of fair value of the reporting unit. As of March 31, 2024 and December 31, 2023, the carrying value of goodwill was $264.1 million. Goodwill was not impaired as of March 31, 2024. Intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method, which reflects the pattern in which the assets are consumed. The estimated useful lives for acquired intangible assets range from to seven years. The Company assesses its intangible assets with finite lives for impairment when indicators of impairment are identified.
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant expenses. The amendments will require public entities to disclose significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within segment profit and loss, as well as the title and position of the CODM. The amendments are effective for the Company's annual periods beginning June 1, 2024, and interim periods beginning June 1, 2025, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The amendments are effective for the Company’s annual periods beginning June 1, 2025, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements.
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Organization (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Company's Portfolio | The following table summarizes the Company’s portfolio as of March 31, 2024:
__________________ 1.The Company owns 20% of the unconsolidated joint venture entity that owns the Bentall Centre property, 50% of the unconsolidated joint venture entity that owns Sunset Glenoaks Studios, 35% of the unconsolidated joint venture entity that owns Sunset Waltham Cross Studios and approximately 26% of the unconsolidated joint venture entity that owns the Sunset Pier 94 Studios development. The square footage shown above represents 100% of the properties. 2.Includes Bentall Centre. 3.Includes Sunset Glenoaks Studios and Sunset Pier 94 Studios. 4.Includes land for the Burrard Exchange and Sunset Waltham Cross Studios.
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Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | As of March 31, 2024, the operating partnership has determined that 12 of its joint ventures met the definition of a VIE and are consolidated:
__________________ 1.HPP-MAC WSP, LLC owned 100% of the One Westside and Westside Two properties prior to their sale in December 2023. 2.Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 3.Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). The following table summarizes the Company’s investments in unconsolidated joint ventures:
__________________ 1.The Company owns 35% of the ownership interests in each of the joint venture entities that own the Sunset Waltham Cross Studios and the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2.The Company serves as the operating member of this joint venture. 3.The Company has provided various guarantees for this joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024. 4.The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $94.1 million at Bentall Centre and $26 thousand at Sunset Pier 94 Studios, respectively. The likelihood of loss relating to the guarantees is remote as of March 31, 2024. 5.As of August 28, 2023, the Company owns 51% of the ownership interests in an upper-tier joint venture entity that owns 50.1% of the ownership interests in the lower-tier joint venture entity that owns the Sunset Pier 94 Studios development. The Company’s resulting economic interest in the development is 25.6%. The Company has provided various guarantees for the lower-tier joint venture’s construction loan, including a completion guarantee, recourse guarantee and guaranty of interest and carry. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024.
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Schedule of Revenue Streams | The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income.
The following table summarizes the Company’s revenue streams that are accounted for under ASC 606 for the three months ended March 31, 2024 and 2023:
The following table summarizes the Company’s receivables that are accounted for under ASC 606 as of:
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Investment in Real Estate (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Investment in Real Estate | The following table summarizes the Company’s investment in real estate, at cost as of:
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Schedule of Dispositions of Real Estate | The following table summarizes information on the disposition of a property considered non-strategic to the Company’s portfolio completed during the three months ended March 31, 2023:
__________________ 1.Represents gross sales price before certain credits, prorations and closing costs. 2.Included within gain (loss) on sale of real estate on the Consolidated Statement of Operations.
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Non-Real Estate Property, Plant and Equipment, net (Tables) |
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Schedule of Property, Plant and Equipment Net | The following table summarizes the Company’s non-real estate property, plant and equipment, net as of:
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Investment in Unconsolidated Real Estate Entities (Tables) |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Variable Interest Entities | As of March 31, 2024, the operating partnership has determined that 12 of its joint ventures met the definition of a VIE and are consolidated:
__________________ 1.HPP-MAC WSP, LLC owned 100% of the One Westside and Westside Two properties prior to their sale in December 2023. 2.Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 3.Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). The following table summarizes the Company’s investments in unconsolidated joint ventures:
__________________ 1.The Company owns 35% of the ownership interests in each of the joint venture entities that own the Sunset Waltham Cross Studios and the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2.The Company serves as the operating member of this joint venture. 3.The Company has provided various guarantees for this joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024. 4.The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $94.1 million at Bentall Centre and $26 thousand at Sunset Pier 94 Studios, respectively. The likelihood of loss relating to the guarantees is remote as of March 31, 2024. 5.As of August 28, 2023, the Company owns 51% of the ownership interests in an upper-tier joint venture entity that owns 50.1% of the ownership interests in the lower-tier joint venture entity that owns the Sunset Pier 94 Studios development. The Company’s resulting economic interest in the development is 25.6%. The Company has provided various guarantees for the lower-tier joint venture’s construction loan, including a completion guarantee, recourse guarantee and guaranty of interest and carry. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2024.
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Schedule of Financial Information of Unconsolidated Real Estate Entity | The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures:
__________________ 1.To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in the loss from unconsolidated real estate entities line item on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures:
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Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-lived Intangible Assets and Liabilities | The following summarizes the Company’s deferred leasing costs and intangibles as of:
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Schedule of Amortization Related to Deferred Leasing Costs and Intangibles | The Company recognized the following amortization related to deferred leasing costs and intangibles:
__________________ 1.Amortization is recorded in depreciation and amortization expenses and for lease incentive costs in office rental revenues on the Consolidated Statements of Operations. 2.Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3.Amortization is recorded in office rental revenues on the Consolidated Statements of Operations.
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Prepaid Expenses and Other Assets, net (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid Expenses and Other Assets, Net | The following table summarizes the Company’s prepaid expenses and other assets, net as of:
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness:
_________________ 1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2024, which may be different than the interest rates as of December 31, 2023 for corresponding indebtedness. 2.Maturity dates include the effect of extension options. 3.The annual facility fee rate ranges from 0.15% or 0.30% based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2024, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.35%. 4.The Company has a total capacity of $900.0 million available under its unsecured revolving credit facility, up to $225.0 million of which can be used for borrowings in pounds sterling or Canadian dollars. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan. 5.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 6.An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects. 7.Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. The first extension option was executed as of August 9, 2023. 8.The Company purchased bonds comprising the loan in the amount of $30.2 million. 9.The floating interest rate on $539.0 million of principal has been capped at 5.70% through the use of an interest rate cap. The floating interest rate on $531.2 million of principal is effectively fixed at 3.31% through the use of an interest rate swap. The floating interest rate on $180.0 million of principal is effectively fixed at 4.13% through the use of an interest rate swap. 10.This loan is interest-only through its term. The floating interest rate on $141.4 million of principal has been capped at 5.00% through the use of an interest rate cap. The floating interest rate on the remaining $172.9 million of principal has been effectively fixed at 3.75% through the use of an interest rate swap. 11.This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 12.Excludes deferred financing costs related to the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See Note 8 for details. 13.This amount relates to debt attributable to Allianz U.S. Private REIT LP (“Allianz”), the Company’s partner in the joint venture that owns the Ferry Building property. 14.Includes the option to extend the initial maturity date of October 9, 2028 twice for an additional two-year term each.
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Schedule of Maturities of Long-term Debt | The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (after the impact of extension options, if applicable) as of March 31, 2024:
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Schedule of Existing Covenants and their Covenant Levels | The following table summarizes existing covenants and their covenant levels as of March 31, 2024 related to our unsecured revolving credit facility and term loans:
The following table summarizes existing covenants and their covenant levels as of March 31, 2024 related to our private placement notes:
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the Series B, Series C and Series D notes. The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of March 31, 2024:
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes, 4.65% Senior Notes and 5.95% Senior Notes.
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Schedule of Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations:
_________________ 1.Includes interest on the Company’s debt and hedging activities. 2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.
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Derivatives (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following table summarizes the Company’s derivative instruments as of March 31, 2024 and December 31, 2023:
__________________ 1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting. 2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio caps that are not designated as cash flow hedges for accounting purposes.
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Income Taxes (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Liabilities | The following table presents the components of the deferred tax liabilities, net recognized on the Company’s Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023:
__________________ 1.Deferred tax assets, net are recorded within prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2.Deferred tax liabilities, net are recorded within accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3.Significant components of the Company’s deferred tax assets and liabilities relate to depreciation and amortization, unrealized gains and losses on non-real estate investments and net operating loss carryforwards.
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Future Minimum Rents and Lease Payments (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Base Rents Receivable | The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2024:
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Schedule of Future Minimum Lease Payments Due | The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of March 31, 2024:
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date.
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Schedule of Rental Expense | The following table summarizes rental expense for operating leases:
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities, Recurring | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:
__________________ 1.Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2.Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3.According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
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Schedule of Fair Value, Liabilities Measured on Recurring Basis | The following table summarizes changes in the carrying amount of the earnout liability during the three months ended March 31, 2024:
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Schedule of Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of:
_________________ 1.Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums.
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Related to Company's Awards | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards:
_________________ 1.Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2.Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3.Part of the stock compensation amount incurred during the three months ended March 31, 2024 is settled in cash. The rest of the amount is recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets.
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net (loss) income available to common stockholders:
__________________ 1.The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net loss available to common unitholders:
__________________ 1.The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation.
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Redeemable Non-Controlling Interest (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Non-controlling Interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests:
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Equity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive (loss) income (“AOCI”):
__________________ 1.The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. The table below presents the activity related to Hudson Pacific Properties, L.P.’s AOCI:
__________________ 1.The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations.
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Schedule of Other Ownership Interests | The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of:
_________________ 1.Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of March 31, 2024, this amount represents both common units and performance units of 550,969 and 3,126,858, respectively. As of December 31, 2023, this amount represents both common units and performance units in the amount of 550,969 and 2,259,464, respectively.
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Schedule of Dividends | The following table summarizes dividends per share declared and paid for the periods presented:
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Segment Reporting (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Activity | The table below presents the operating activity of the Company’s reportable segments:
The table below is a reconciliation of net loss to total profit from all segments:
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Supplemental Cash Flow Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Information | Supplemental cash flow information for Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. is included as follows:
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Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc and Hudson Pacific Properties, L.P.:
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Schedule of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc and Hudson Pacific Properties, L.P.:
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Summary of Significant Accounting Policies - Schedule of Revenue Streams (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
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Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
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Disaggregation of Revenue | |||
Management fee income | $ 1,125 | $ 2,402 | |
Management services reimbursement income | 1,156 | 1,064 | |
Ancillary revenues | |||
Disaggregation of Revenue | |||
Service and other revenues | 24,200 | 27,294 | |
Receivables | 8,116 | $ 5,478 | |
Other revenues | |||
Disaggregation of Revenue | |||
Service and other revenues | 4,354 | 5,518 | |
Receivables | 1,200 | $ 954 | |
Studio-related tenant recoveries | |||
Disaggregation of Revenue | |||
Service and other revenues | $ 442 | $ 541 |
Investment in Real Estate - Schedule of Investments in Real Estate (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Real Estate [Abstract] | ||
Land | $ 1,220,339 | $ 1,220,339 |
Building and improvements | 6,176,712 | 5,969,364 |
Tenant improvements | 763,259 | 818,653 |
Furniture and fixtures | 6,039 | 8,609 |
Property under development | 12,180 | 195,931 |
INVESTMENT IN REAL ESTATE, AT COST | $ 8,178,529 | $ 8,212,896 |
Investment in Real Estate - Schedule of Dispositions of Real Estate Properties (Details) - Skyway Landing - Disposed of by Sale $ in Millions |
Feb. 06, 2023
USD ($)
ft²
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |
Area of real estate property (in square feet) | ft² | 246,997 |
Sales Price | $ 102.0 |
Gain on Sale | $ 7.0 |
Investment in Unconsolidated Real Estate Entities - Narrative (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
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Schedule of Equity Method Investments | ||
Investment in unconsolidated real estate entities | $ 270,440 | $ 252,711 |
Unconsolidated joint ventures | ||
Schedule of Equity Method Investments | ||
Investment in unconsolidated real estate entities | $ 400 | $ 100 |
Investment in Unconsolidated Real Estate Entities - Schedule of Balance Sheet (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
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ASSETS | ||||
Investment in real estate, net | $ 6,441,809 | $ 6,484,459 | ||
TOTAL ASSETS | 8,251,462 | 8,282,050 | ||
Liabilities | ||||
Total liabilities | 4,800,975 | 4,720,881 | ||
Total equity | 3,388,564 | 3,494,172 | $ 3,698,882 | $ 3,749,831 |
TOTAL LIABILITIES AND EQUITY | 8,251,462 | 8,282,050 | ||
Equity method investment, nonconsolidated investee or group of investees | ||||
ASSETS | ||||
Investment in real estate, net | 1,291,331 | 1,295,449 | ||
Other assets | 44,095 | 40,790 | ||
TOTAL ASSETS | 1,335,426 | 1,336,239 | ||
Liabilities | ||||
Secured debt, net | 555,380 | 564,949 | ||
Other liabilities | 31,911 | 46,947 | ||
Total liabilities | 587,291 | 611,896 | ||
Company’s capital | 239,772 | 225,898 | ||
Partner’s capital | 508,363 | 498,445 | ||
Total equity | 748,135 | 724,343 | ||
TOTAL LIABILITIES AND EQUITY | $ 1,335,426 | $ 1,336,239 |
Investment in Unconsolidated Real Estate Entities - Schedule of Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Equity Method Investment, Summarized Financial Information, Income Statement | ||
TOTAL REVENUES | $ 214,023 | $ 252,263 |
Net loss | (53,355) | (14,817) |
Equity method investment, nonconsolidated investee or group of investees | ||
Equity Method Investment, Summarized Financial Information, Income Statement | ||
TOTAL REVENUES | 17,278 | 18,471 |
TOTAL EXPENSES | 21,753 | 22,077 |
Net loss | $ (4,475) | $ (3,606) |
Receivables (Details) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 24,700,000 | $ 25,000,000 |
Accounts receivable, allowance for doubtful accounts | 700,000 | 400,000 |
Straight-line rent receivables, gross | 217,700,000 | 220,800,000 |
Straight-line rent receivable, allowance for doubtful accounts | $ 0 | $ 0 |
Prepaid Expenses and Other Assets, net - Schedule of Prepaid Expenses (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Non-real estate investments | $ 48,230 | $ 48,581 |
Deferred tax assets, net | 2,421 | 2,412 |
Interest rate derivative assets | 12,319 | 6,441 |
Deferred financing costs, net | 3,758 | 4,316 |
Prepaid property tax | 1,038 | 2,075 |
Prepaid insurance | 1,472 | 10,611 |
Other | 21,574 | 19,709 |
PREPAID EXPENSES AND OTHER ASSETS, NET | $ 90,812 | $ 94,145 |
Prepaid Expenses and Other Assets, net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Unrealized gain (loss) on non-real estate investments | $ (0.9) | $ 0.9 |
Debt - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Revolving credit facility | |
Debt Instrument | |
Proceeds from unsecured lines of credit | $ 88.0 |
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Unsecured and Secured Debt | ||
Debt Instrument | ||
Remaining 2024 | $ 0 | |
2025 | 741,300 | |
2026 | 1,499,767 | |
2027 | 456,000 | |
2028 | 451,000 | |
Thereafter | 900,000 | |
TOTAL | 4,048,067 | $ 3,960,067 |
Consolidated joint venture partner debt | ||
Debt Instrument | ||
Remaining 2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 66,136 | |
TOTAL | $ 66,136 |
Debt - Schedule of Reconciliation of Gross Interest Expense and Interest Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Debt Disclosure [Abstract] | ||
Gross interest expense | $ 50,656 | $ 53,298 |
Capitalized interest | (8,482) | (6,862) |
Non-cash interest expense | 1,915 | 7,371 |
INTEREST EXPENSE | $ 44,089 | $ 53,807 |
Derivatives - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unrealized gain included in accumulated other comprehensive loss | $ 8.1 |
Income Taxes - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Income tax benefit | $ 0 | $ 0 |
Income tax benefit | $ (5,300,000) | |
Liability for uncertainty in income taxes | $ 0 |
Income Taxes - Deferred Tax Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred Tax Liabilities, Net [Abstract] | ||
Deferred tax assets, net | $ 2,421 | $ 2,412 |
Deferred tax liabilities, net | (3,705) | (3,705) |
Deferred tax liabilities, net | (1,284) | (1,293) |
Total deferred tax assets | 54,538 | 54,163 |
Valuation allowance | (29,913) | (29,477) |
Total deferred tax liabilities | $ (25,909) | $ (25,979) |
Future Minimum Rents and Lease Payments - Schedule of Future Minimum Base Rents Receivable (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Receivable | |
Remaining 2024 | $ 429,083 |
2025 | 489,338 |
2026 | 433,642 |
2027 | 377,132 |
2028 | 315,263 |
Thereafter | 653,143 |
TOTAL | $ 2,697,601 |
Future Minimum Rents and Lease Payments - Narrative (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024
USD ($)
contract
|
Dec. 31, 2023
USD ($)
|
|
Operating Leased Assets | ||
Operating lease payment | $ | $ 704,885 | |
Operating lease liabilities | $ | 383,993 | $ 389,210 |
Operating lease right-of-use assets | $ | $ 370,056 | $ 376,306 |
Ground Lease | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | 12 | |
Sound Stage Lease | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | 10 | |
Office Lease | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | 7 | |
Other Lease | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | 17 |
Future Minimum Rents and Lease Payments - Schedule of Future Minimum Payments Due (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Lessee, Operating Lease, Liability, Payment, Due | ||
Remaining 2024 | $ 31,004 | |
2025 | 40,523 | |
2026 | 38,947 | |
2027 | 36,276 | |
2028 | 34,374 | |
Thereafter | 523,761 | |
Total operating lease payments | 704,885 | |
Less: interest portion | (320,892) | |
Operating lease liabilities | $ 383,993 | $ 389,210 |
Future Minimum Rents and Lease Payments - Schedule of Rental Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Leases [Abstract] | ||
Variable rental expense | $ 2,102 | $ 3,007 |
Minimum rental expense | $ 11,319 | $ 11,082 |
Fair Value of Financial Instruments - Schedule of Contingent Liability (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Contingent Liability | |
Balance at the beginning | $ (5,000) |
Settlement | 5,000 |
Balance at the ending | $ 0 |
Fair Value of Financial Instruments - Schedule of Investment in Securities and Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Carrying Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | $ 2,395,000 | $ 2,307,000 |
Carrying Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,653,067 | 1,653,067 |
Carrying Value | Consolidated joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 66,136 | 66,136 |
Fair Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,129,962 | 1,971,410 |
Fair Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,636,522 | 1,634,668 |
Fair Value | Consolidated joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | $ 60,791 | $ 59,966 |
Stock-Based Compensation - Schedule of Stock-based Compensation Related to Company's Awards (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Expensed stock compensation | $ 6,567 | $ 5,236 |
Capitalized stock compensation | 605 | 672 |
TOTAL STOCK COMPENSATION | $ 7,172 | $ 5,908 |
Redeemable Non-Controlling Interest - Narrative (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Oct. 09, 2018 |
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Consolidated Real Estate Entity | Hudson One Ferry REIT, L.P. | |||
Redeemable Noncontrolling Interest | |||
VIE, ownership interest (as a percent) | 55.00% | ||
Series A Redeemable Preferred Units | |||
Redeemable Noncontrolling Interest | |||
Redeemable non-controlling interest shares (in shares) | 392,598 | 392,598 | |
Interest rate of preferred stock (as a percent) | 6.25% | ||
Liquidation preference (in dollars per share) | $ 25.00 |
Redeemable Non-Controlling Interest - Schedule of Non-controlling interests (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Consolidated Real Estate Entity | |
Increase (Decrease) in Temporary Equity | |
BEGINNING OF PERIOD | $ 57,182 |
Distributions | (3,917) |
Declared dividend | 0 |
Net income (loss) | (1,157) |
END OF PERIOD | 52,108 |
Series A Redeemable Preferred Units | |
Increase (Decrease) in Temporary Equity | |
BEGINNING OF PERIOD | 9,815 |
Distributions | 0 |
Declared dividend | (153) |
Net income (loss) | 153 |
END OF PERIOD | $ 9,815 |
Equity - Common Stock Activity Narrative (Details) - ATM Program |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
shares
| |
Class of Stock | |
Number of share authorized, value | $ 125,000,000 |
Sales of stock, shares issued (shares) | shares | 0 |
Cumulative total of sales of common stock | $ 65,800,000 |
Equity - Share Repurchase Program Narrative (Details) - Common units |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
shares
| |
Class of Stock | |
Stock repurchase program authorized | $ 250,000,000 |
Repurchase of common units (in shares) | shares | 0 |
Repurchase of common stock, cumulative | $ 214,700,000 |
Equity - Accelerated Share Repurchase Agreements Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Stock | ||
Payments for repurchase of common stock | $ 0 | $ 1,369,000 |
Common units | ||
Class of Stock | ||
Stock repurchase program authorized | $ 250,000,000 | |
Repurchase of common units (in shares) | 0 |
Equity - Series C Cumulative Redeemable Preferred Stock Narrative (Details) - 4.750% Series C Cumulative Redeemable Preferred Stock - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
|
Accumulated Other Comprehensive Income (Loss) | ||||
Preferred stock, outstanding (in shares) | 17,000,000 | 17,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Interest rate of preferred stock (as a percent) | 4.75% | 4.75% | ||
Liquidation preference (in dollars per share) | $ 25.00 | $ 25.00 | ||
Temporary equity, dividend rate (in dollar per share) | 1.1875 | $ 1.1875 | $ 1.1875 | $ 1.1875 |
Liquidation preference of preferred stock (in dollars per share) | $ 25.00 |
Equity - Schedule of Dividends (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Class of Stock | ||
Common stock, dividends (in dollars per share) | $ 0.05 | $ 0.25 |
Common stock, dividends, cash paid (in dollars per share) | 0.05 | 0.25 |
Common units, dividends (in dollars per share) | 0.05 | 0.25 |
Common units, dividends, cash paid (in dollars per share) | 0.05 | 0.25 |
Preferred units/stock, dividends, cash paid (in dollars per share) | 0.3906 | 0.3906 |
Performance units, dividends, cash paid (in dollars per share) | 0.05 | 0.25 |
Performance units, dividends (in dollars per share) | 0.05 | 0.25 |
Series A preferred units | ||
Class of Stock | ||
Preferred units/stock, dividends (in dollars per share) | 0.3906 | 0.3906 |
Series C preferred stock | ||
Class of Stock | ||
Preferred units/stock, dividends (in dollars per share) | 0.296875 | 0.296875 |
Preferred units/stock, dividends, cash paid (in dollars per share) | $ 0.296875 | $ 0.296875 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
|
Related Party Transaction | |||
Management services reimbursement income—unconsolidated real estate entities | $ 1,156 | $ 1,064 | |
Operating lease right-of-use assets | 370,056 | $ 376,306 | |
Operating lease liabilities | 383,993 | 389,210 | |
Management services expense—unconsolidated real estate entities | 1,156 | 1,064 | |
Related Party | Related Party Leases | |||
Related Party Transaction | |||
Operating lease right-of-use assets | 5,800 | 6,200 | |
Operating lease liabilities | 6,000 | $ 6,400 | |
Management services expense—unconsolidated real estate entities | $ 300 | $ 200 |
Commitments and Contingencies (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Capital Addition Purchase Commitments | |
Loss Contingencies | |
Commitment to fund amount | $ 89.7 |
Revolving credit facility | Unsecured debt | |
Loss Contingencies | |
Letters of credit outstanding | 3.1 |
Real estate technology venture capital fund | |
Loss Contingencies | |
Commitment to fund amount | 51.0 |
Contributions to date | 38.7 |
Amount remaining to be contributed | $ 12.3 |
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of capitalized interest | $ 43,894 | $ 39,943 |
Non-cash investing and financing activities | ||
Accounts payable and accrued liabilities for real estate investments | 73,471 | 147,196 |
Ground lease remeasurements | 0 | 3,667 |
Redemption of common units in the operating partnership | 133 | 0 |
Hudson Pacific Partners L.P. | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of capitalized interest | 43,894 | 39,943 |
Non-cash investing and financing activities | ||
Accounts payable and accrued liabilities for real estate investments | 73,471 | 147,196 |
Ground lease remeasurements | 0 | 3,667 |
Redemption of common units in the operating partnership | $ 133 | $ 0 |
Supplemental Cash Flow Information - Schedule of Reconciliation of Cash and Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|---|
Cash and Cash Equivalents | ||||
Cash and cash equivalents | $ 114,305 | $ 100,391 | $ 163,327 | $ 255,761 |
Restricted cash | 19,267 | 18,765 | 19,571 | 29,970 |
TOTAL | 133,572 | 119,156 | 182,898 | 285,731 |
Hudson Pacific Partners L.P. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents | 114,305 | 100,391 | 163,327 | 255,761 |
Restricted cash | 19,267 | 18,765 | 19,571 | 29,970 |
TOTAL | $ 133,572 | $ 119,156 | $ 182,898 | $ 285,731 |
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