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Hudson Pacific Properties, Inc.

Hudson Pacific Properties, Inc.HPP财报

NYSE

Hudson Pacific Properties is a real estate investment trust with 15.8 million square feet of office buildings, 1.5 million square feet of sound stages, and undeveloped rights for 3 million square feet of additional commercial property. Its properties are on the West Coast of the United States and Vancouver. It is organized in Maryland and headquartered in Los Angeles. It is the largest independent operator of sound stages in Los Angeles.

What changed in Hudson Pacific Properties, Inc.'s 10-K — 2024 vs 2025

Top changes in Hudson Pacific Properties, Inc.'s 2025 10-K

272 paragraphs added · 261 removed · 203 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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A Phase I 9 Environmental Site Assessment is a report prepared for real estate holdings that identifies potential or existing environmental contamination liabilities. Site assessments are intended to discover and evaluate information regarding the environmental condition of the surveyed property and surrounding properties. These assessments do not generally include soil samplings, subsurface investigations or asbestos or lead surveys.
A Phase I Environmental Site Assessment is a report prepared for real estate holdings that identifies potential or existing environmental 9 contamination liabilities. Site assessments are intended to discover and evaluate information regarding the environmental condition of the surveyed property and surrounding properties. These assessments do not generally include soil samplings, subsurface investigations or asbestos or lead surveys.
Through our Better Blueprint TM program, the Company is an established industry leader in corporate responsibility and sustainability. We have received accolades from the Global Real Estate Sustainability Benchmark (GRESB), the National Associate of Real Estate Investment Trusts (NAREIT), and the National Association of Office Properties (NAIOP), ENERGY STAR among many others.
Through our Better Blueprint TM program, the Company is an established industry leader in sustainability. We have received accolades from the Global Real Estate Sustainability Benchmark (GRESB), the National Associate of Real Estate Investment Trusts (NAREIT), and the National Association of Office Properties (NAIOP), ENERGY STAR among many others.
A copy of this Annual Report on Form 10-K is available without charge upon written request to: Investor Relations, Hudson Pacific Properties, Inc., 11601 Wilshire Blvd., Ninth Floor, Los Angeles, California 90025. 12
A copy of this Annual Report on Form 10-K is available without charge upon written request to: Investor Relations, Hudson Pacific Properties, Inc., 11601 Wilshire Blvd., Ninth Floor, Los Angeles, California 90025. 11
We seek to prudently allocate capital to achieve growth while maintaining conservative leverage. We are willing to consider accessing equity markets to fund attractive investment opportunities. We have the discipline to work consistently to achieve long-term leverage targets while ensuring optionality for future growth. • Leadership in Corporate Responsibility and Sustainability.
We seek to prudently allocate capital to achieve growth while maintaining conservative leverage. We are willing to consider accessing equity markets to fund attractive investment opportunities. We have the discipline to work consistently to achieve long-term leverage targets while ensuring optionality for future growth. • Leadership in Sustainability.
For information about our segments, refer to Part IV, Item 15(a) “Financial Statement Schedules—Note 19 to the Consolidated Financial Statements—Segment Reporting.” Our portfolio of owned real estate is concentrated in California, the Pacific Northwest, New York, Western Canada and Greater London, United Kingdom.
For information about our segments, refer to Part IV, Item 15(a) “Financial Statement Schedules—Note 19 to the Consolidated Financial Statements—Segment Reporting.” Our portfolio of owned real estate is concentrated in California, the Pacific Northwest, New York, and Western Canada.
As of December 31, 2024, our portfolio included: • Office properties comprising approximate ly 14.6 million sq uare feet; • Studio properties comprising approxi mately 45 stages and 1.7 million square feet of sound stages and production-supporting office and other facilities; • Land properties comprising approximately 3.2 million square feet of undeveloped density rights for future office, studio and residential space; and • Production services assets, comprising vehicles, lighting and grip, production supplies and other equipment and the lease rights to an additional 24 sound stages.
As of December 31, 2025, our portfolio included: • Office properties comprising approximate ly 13.9 million sq uare feet; • Studio properties comprising approxi mately 1.7 million square feet, including 45 sound stages, production-supporting office and other facilities; • Land properties comprising approximately 3.2 million square feet of undeveloped density rights for office, studio and residential space; and • Production services assets, comprising vehicles, lighting and grip, production supplies and other equipment and the lease rights to an additional 20 sound stages.
Our science-based target commits us to go further by reducing absolute Scope 1 and 2 greenhouse gas (“GHG”) emissions by 50% by 2030, from a 2018 baseline, excluding financial instruments like unbundled renewable energy credits and carbon offsets. More about our sustainability efforts can be found in Hudson Pacific’s Corporate Responsibility Report .
The company has had 100% carbon neutral real estate operations since 2020, and we have a science-based target that commits us to go further by reducing absolute Scope 1 and 2 greenhouse gas (“GHG”) emissions by 50% by 2030, from a 2018 baseline, excluding financial instruments like unbundled renewable energy credits and carbon offsets.
Likewise, competition with sellers of similar properties to find suitable purchasers may result in us receiving lower proceeds from a sale or in us not being able to dispose of a property at a time of our choosing due to the lack of an acceptable return. 8 For further discussion of the potential impact of competitive conditions on our business, refer to Item 1A “Risk Factors.” Segment and Geographic Financial Information We report our results of operations through two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations.
For further discussion of the potential impact of competitive conditions on our business, refer to Item 1A “Risk Factors.” 8 Segment and Geographic Financial Information We report our results of operations through two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations.
Collective Bargaining Arrangements At December 31, 2024, we had 740 employees, of which 150 were subject to collective bargaining agreements in our production services/operating companies. We believe that relations with our employees are good.
Collective Bargaining Arrangements As of December 31, 2025, we had 607 employees, of whom 131 were covered by collective bargaining agreements within our production services and operating companies. We believe our relations with employees are good.
In addition to traditional employee development programs (e.g., annual performance reviews and role-specific training programs), we offer individualized curriculums through an online platform at no cost to the employees, interactive leadership development programs for junior and mid-career/senior team members and off-site team retreats that foster team-building and skills training.
We offer interactive leadership development programs for junior and senior team members and off-site team retreats that foster team-building and skills training. The Company honors top performers through annual “Excellence Awards,” which highlight performance, leadership and impact across the organization.
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Corporate Responsibility Commitment Our corporate responsibility program, Better Blueprint TM , is informed by decades of experience and what we believe to be best practices across every aspect of real estate. Better Blueprint TM brings to life our vision of vibrant, thriving urban spaces and places built for the long term.
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Likewise, competition with sellers of similar properties to find suitable purchasers may result in us receiving lower proceeds from a sale or in us not being able to dispose of a property at a time of our choosing due to the lack of an acceptable return.
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Its principles and objectives provide a common thread that authentically guides our work and relations with tenants, employees, investors and partners. Sustainable: Minimizing our Footprint We are committed to leadership in sustainability—whether designing a new property, reimagining a dated building, or managing our existing real estate portfolio and production services businesses.
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Sustainability Environmental sustainability and social impact are priorities shared by many of our customers, investors, and other key stakeholders. Our efforts in these areas are part of our company’s broader Better Blueprint program—an initiative that brings to life our vision of vibrant, thriving urban spaces and places built for the long term.
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Addressing climate change in ways that are relevant to our industry and drive business value is the focus of our sustainability program. We have had 100% carbon neutral real estate operations since 2020 .
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This ‘blueprint’ articulates many of the principles and practices that inform our commitment to both portfolio and management excellence. It has received numerous awards and accolades, including from the National Association of Real Estate Investment Trusts (NAREIT), Global Real Estate Sustainability Benchmark (GRESB), and the Department of Energy’s ENERGY STAR program.
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Our 2024 achievements include: • 100% carbon neutral operations across our entire real estate operating portfolio; • 100% of our in-service office portfolio has recycling services and over 70% has composting services; • Over 90% of our in-service office portfolio is LEED certified and over 70% is ENERGY STAR certified; • Better Blueprint TM Action Plans at all operating properties; and 10 • Sustainable Design Vision for all redevelopments and major repositionings.
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Our environmental sustainability program differentiates us with customers and investors who prioritize this issue.
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Healthy: Healthy Buildings, Healthy Lives We aim to set our properties apart by providing safe environments that promote wellness and resilience for our employees, customers and neighbors. Our health and safety program includes emergency response plans, fire life safety systems, MERV-13+ air filters, and regular safety training at all buildings.
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Our office portfolio is almost entirely LEED certified and offers plentiful green amenities like EV charging, end-of-trip facilities, and outdoor work areas. Our studios business has become a recognized industry leader for zero-emission production solutions such as energy-efficient sound stages, solar-electric production trailers, electric vehicles and clean mobile power solutions.
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We are also committed to advancing wellness and well-being, and we consistently deliver state-of-the-art buildings with functional outdoor space, fitness amenities, natural light, healthy food and other wellness-oriented features. We offer in-person and virtual wellness programming at most properties, and we have a goal to achieve Fitwel certification for at least 50% of our in-service office portfolio by 2030.
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Our social impact program supports our strategy to transform our real estate assets into destinations where tenants’ employees are excited to spend their days, all while helping us attract and retain top talent ourselves. We consistently deliver state-of-the-art buildings with natural light, healthy food, fitness amenities and on-site programming to engage tenants and local community members.
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Our 2024 achievements include: • All operating office and studio properties use MERV-13+ filters, among other COVID-safe procedures; • Over 90% of our in-service office portfolio is served by bike storage, showers and/or lockers; • Over 60% of our in-service office portfolio has on-site fitness amenities and/or a mobile app that promotes health and wellness through virtual fitness classes, mindfulness training, cooking sessions, and more; and • Over 40% of our in-service office portfolio is Fitwel certified.
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We also have a robust charitable giving and employee volunteering program that helps us give back to local communities, preserving what makes our neighborhoods vibrant and desirable places for companies to locate their workplaces.
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Equitable: Vibrant, Thriving Cities for All We seek to create and cultivate communities that afford opportunity for everyone to succeed. We strive to promote an inclusive corporate culture that celebrates our diverse workforce and implement fair human capital management practices.
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More information can be found in Hudson Pacific’s Better Blueprint Report. 10 Human Capital Talent Acquisition and Retention We believe our people are our greatest asset, and our recruitment process is designed to attract and retain qualified candidates who align with our values and business objectives.
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We support key groups aiming to diversify talent pipelines in our industry, donate at least 1% of net earnings to charitable causes annually and have an active employee volunteering program to ensure we give back to our communities.
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Our hiring process includes behavioral-based interviews and assessments conducted by recruiters, hiring managers, and relevant stakeholders to promote consistency and objectivity. We value employees at all levels of the organization and seek to foster an inclusive workplace that respects diversity across gender, age, ethnicity and cultural background.
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Our 2024 achievements include: • Continued collaboration with industry groups aiming to diversify our talent pipelines; • Continuation of our commitment to invest $20 million in innovative homelessness and housing solutions; • Over $800,000 in charitable giving; and • Over 8,400 hours of employee volunteering.
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We take pride in the fact that our workforce reflects a broad range of backgrounds and experiences. As of December 31, 2025, our employee base was 40% female and 63% ethnically diverse. We support inclusion through Employee Resource Groups designed to foster connection, professional development and the sharing of perspectives among employees.
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Human Capital Hiring In alignment with our Company values, we believe our people are our greatest asset and we embrace a recruitment process that strives to attract top-tier talent. Through a series of behavioral-based interviews, Company recruiters assess candidates for skills, competencies and cultural fit.
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Training and Development New employees participate in a comprehensive orientation program designed to familiarize them with the Company’s business, strategy, values and leadership approach through interactive sessions with Senior executives. Ongoing development opportunities include annual performance reviews, role-specific training programs and access to individualized online learning resources.
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The hiring team comprises a recruiter, hiring manager and other peers or stakeholders to ensure a collaborative process. Diversity and Inclusion We value employees at all levels of the organization and provide ample opportunities for growth, while striving to celebrate diversity in all its forms including gender, age, ethnicity and cultural background.
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Compensation and Benefits We maintain a pay-for-performance compensation philosophy, under which compensation decisions consider individual performance, team or departmental results and overall Company performance. Compensation assessments also consider how results are achieved, including alignment with our values and competencies. Merit salary increases and discretionary bonuses are awarded as recognition for past year’s performance.
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We take pride in the fact that our employee population across our operating office and studio portfolio reflects a balanced gender representation as well as a broad cross-section of racial and ethnic backgrounds. We have six Employee Resource Groups, each designed to connect employees with similar backgrounds and shared experiences while sharing best practices and ensuring support for each other.
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Our compensation and benefits programs are designed to be competitive within our industry and include retirement savings plans, medical, dental and vision coverage, parental leave, flexible spending accounts, an employee referral bonus program and an employee assistance program. We also offer paid holidays, vacation and sick time and wellness-related benefits intended to support work/life balance.
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Training and Development Upon joining the Company, our employees attend a comprehensive orientation program that is a fun, interactive opportunity for new hires to learn more about the Company, our business strategy, core values and leadership philosophy. Senior executives speak candidly about the Company and their roles.
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The Company regularly honors top performers, and generous Company policies encourage work/life balance through paid time off, subsidized gym memberships, fitness programs, events and healthy dining options. 11 Compensation and Benefits We are a pay-for-performance organization, which means that compensation decisions are made based on individual, team/department, and overall Company performance.
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This includes consideration of an individual’s contributions and accomplishments as well as how these were achieved (values, skills, and competencies). The objective is to emphasize corporate goals and individual contributions to the achievement of those goals for the year. We award merit salary increases as recognition for the past year’s performance, sustained contributions, and/or the demonstration of newly acquired skills.
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Discretionary bonuses are designed to reward employees for fulfilling their responsibilities, delivering superior results, and making significant contributions. Discretionary performance bonus amounts are based on job level and dependent on the nature and significance of the employee’s contribution and accomplishment. We offer competitive compensation and benefits, including, but not limited to, retirement savings plans and medical, dental, and vision coverage.
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We offer multiple flexible spending accounts and an employee referral bonus program. We have generous policies to encourage work/life balance, including paid holiday, vacation, and sick time as well as an employee assistance program that offers confidential assistance 24 hours a day, 365 days a year to assist with personal and work-related problems.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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These events include many of the risks set forth above under “—Risks Related to Our Properties and Our Business,” as well as the following: • local oversupply or reduction in demand for office or studio-related space; • adverse changes in financial conditions of buyers, sellers and tenants of properties; • vacancies or our inability to rent space on favorable terms, including possible market pressures to offer tenants rent abatements, tenant improvements, early termination rights or below-market renewal options, and the need to periodically repair, renovate and re-let space; • increased operating costs, including insurance premiums, utilities, real estate taxes and state and local taxes; • civil unrest, acts of war, terrorist attacks and natural disasters, including earthquakes and floods, which may result in uninsured or underinsured losses; 18 • decreases in the underlying value of our real estate; and • changing submarket demographics.
These events include many of the risks set forth above under “—Risks Related to Our Properties and Our Business,” as well as the following: • local oversupply or reduction in demand for office or studio-related space; • adverse changes in financial conditions of buyers, sellers and tenants of properties; • vacancies or our inability to rent space on favorable terms, including possible market pressures to offer tenants rent abatements, tenant improvements, early termination rights or below-market renewal options, and the need to periodically repair, renovate and re-let space; • increased operating costs, including insurance premiums, utilities, real estate taxes and state and local taxes; • civil unrest, acts of war, terrorist attacks and natural disasters, including earthquakes and floods, which may result in uninsured or underinsured losses; • decreases in the underlying value of our real estate; and • changing submarket demographics.
These provisions include, among others: • redemption rights of qualifying parties; • transfer restrictions on units; 22 • our ability, as general partner, in some cases, to amend the partnership agreement and to cause the operating partnership to issue units with terms that could delay, defer or prevent a merger or other change of control of us or our operating partnership without the consent of the limited partners; • the right of the limited partners to consent to transfers of the general partnership interest and mergers or other transactions involving us under specified circumstances; and • restrictions on debt levels and equity requirements pursuant to the terms of our series A preferred units, as well as required distributions to holders of series A preferred units of our operating partnership, following certain changes of control of us.
These provisions include, among others: • redemption rights of qualifying parties; • transfer restrictions on units; • our ability, as general partner, in some cases, to amend the partnership agreement and to cause the operating partnership to issue units with terms that could delay, defer or prevent a merger or other change of control of us or our operating partnership without the consent of the limited partners; • the right of the limited partners to consent to transfers of the general partnership interest and mergers or other transactions involving us under specified circumstances; and • restrictions on debt levels and equity requirements pursuant to the terms of our series A preferred units, as well as required distributions to holders of series A preferred units of our operating partnership, following certain changes of control of us.
In addition, we may only engage in a fundamental change, including a recapitalization, a merger and a sale of all or substantially all of our assets, as a result of which our common stock ceases to be publicly traded or common units cease to be exchangeable (at our option) for publicly traded shares of our stock, without the consent of holders of series A preferred units if following such transaction we will maintain certain leverage ratios and equity requirements, and pay certain minimum tax distributions to holders of our outstanding series A preferred units.
In addition, we may only engage in a fundamental change, including a recapitalization, a merger and a sale of all or substantially all of our assets, as a result of which our common stock ceases to be publicly traded or common units cease to be exchangeable (at our 20 option) for publicly traded shares of our stock, without the consent of holders of series A preferred units if following such transaction we will maintain certain leverage ratios and equity requirements, and pay certain minimum tax distributions to holders of our outstanding series A preferred units.
Epidemics, pandemics or other outbreaks of an illness, disease or virus, including the recent COVID-19 pandemic, could result in significant governmental measures being implemented to control the spread of such illness, disease or virus, including quarantines, restrictions on travel, “shelter in place” rules, stay-at-home orders, density limitations, social distancing measures, restrictions on types of business that may continue to operate and/or restrictions on types of construction projects that may continue, which could adversely affect our ability to adequately manage our business.
Epidemics, pandemics or other outbreaks of an illness, disease or virus, including the relatively recent COVID-19 pandemic, could result in significant governmental measures being implemented to control the spread of such illness, disease or virus, including quarantines, restrictions on travel, “shelter in place” rules, stay-at-home orders, density limitations, social distancing measures, restrictions on types of business that may continue to operate and/or restrictions on types of construction projects that may continue, which could adversely affect our ability to adequately manage our business.
The loss of services of one or more members of our senior management team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and weaken our relationships with lenders, business partners, existing and prospective tenants and industry personnel, which could adversely affect our financial condition, results of operations, cash flow and the per share trading price of our securities.
The loss of services of one or more members of our senior management team, or our inability to attract and retain highly qualified personnel, could adversely affect our business, diminish our investment opportunities and weaken our 16 relationships with lenders, business partners, existing and prospective tenants and industry personnel, which could adversely affect our financial condition, results of operations, cash flow and the per share trading price of our securities.
Our ability to acquire properties on favorable terms, or at all, may be exposed to the following significant risks: • potential inability to acquire a desired property because of competition from other real estate investors with significant capital, including other publicly traded REITs, private equity investors and institutional investment funds, which may be able 13 to accept more risk than we can prudently manage, including risks with respect to the geographic proximity of investments and the payment of higher acquisition prices; • we may incur significant costs and divert management attention in connection with evaluating and negotiating potential acquisitions, including ones that we are subsequently unable to complete; • even if we enter into agreements for the acquisition of properties, these agreements are typically subject to customary conditions to closing, including the satisfactory completion of our due diligence investigations; and • we may be unable to finance the acquisition on favorable terms or at all.
Our ability to acquire properties on favorable terms, or at all, may be exposed to the following significant risks: • potential inability to acquire a desired property because of competition from other real estate investors with significant capital, including other publicly traded REITs, private equity investors and institutional investment funds, which may be able 12 to accept more risk than we can prudently manage, including risks with respect to the geographic proximity of investments and the payment of higher acquisition prices; • we may incur significant costs and divert management attention in connection with evaluating and negotiating potential acquisitions, including ones that we are subsequently unable to complete; • even if we enter into agreements for the acquisition of properties, these agreements are typically subject to customary conditions to closing, including the satisfactory completion of our due diligence investigations; and • we may be unable to finance the acquisition on favorable terms or at all.
Moreover, to the extent any of these risks and uncertainties adversely impact us in the ways described above or otherwise, they may also have the effect of heightening many of the other risks set forth in this “Risk Factors” section. 26 Social, political, and economic instability, unrest, and other circumstances beyond our control could adversely affect our business operations.
Moreover, to the extent any of these risks and uncertainties adversely impact us in the ways described above or otherwise, they may also have the effect of heightening many of the other risks set forth in this “Risk Factors” section. Social, political, and economic instability, unrest, and other circumstances beyond our control could adversely affect our business operations.
Environmental liabilities could affect a tenant’s ability to make rental payments to us. In addition, changes in laws could increase the 19 potential liability for noncompliance. This may result in significant unanticipated expenditures or may otherwise materially and adversely affect our operations, or those of our tenants, which could in turn have an adverse effect on us.
Environmental liabilities could affect a tenant’s ability to make rental payments to us. In addition, changes in laws could increase the potential liability for noncompliance. This may result in significant unanticipated expenditures or may otherwise materially and adversely affect our operations, or those of our tenants, which could in turn have an adverse effect on us.
If we do incur material environmental liabilities in the future, we may face significant remediation costs, and we may find it difficult to sell any affected properties. Our properties may contain or develop harmful mold or suffer from other air quality issues, which could lead to liability for adverse health effects and costs of remediation.
If we do incur material environmental liabilities in the future, we may face significant remediation costs, and we may find it difficult to sell any affected properties. 19 Our properties may contain or develop harmful mold or suffer from other air quality issues, which could lead to liability for adverse health effects and costs of remediation.
Furthermore, our unsecured revolving credit facility and term loan 15 facility contain specific cross-default provisions with respect to specified other indebtedness, giving the lenders the right to declare a default if we are in default under other loans in some circumstances. Further downgrades in our credit ratings could materially adversely affect our business and financial condition.
Furthermore, our unsecured revolving credit facility and term loan facility contain specific cross-default provisions with respect to specified other indebtedness, giving the lenders the right to declare a default if we are in default under other loans in some circumstances. Further downgrades in our credit ratings could materially adversely affect our business and financial condition.
Such events may result in restrictions, curfews, or other actions and give rise to significant changes in regional and global economic conditions and cycles, which may adversely affect our financial condition and operations. Potential losses, including from adverse weather conditions, natural disasters and title claims, may not be covered by insurance.
Such events may result in restrictions, curfews, or other actions and give rise to significant changes in regional and global economic conditions and cycles, which may adversely affect our financial condition and operations. 26 Potential losses, including from adverse weather conditions, natural disasters and title claims, may not be covered by insurance.
Accordingly, investors who are individuals, trusts and estates may perceive investments in 25 REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our securities.
Accordingly, investors who are individuals, trusts and estates may perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could materially and adversely affect the value of the shares of REITs, including the per share trading price of our securities.
In addition, a bankrupt or insolvent tenant may be authorized to reject and terminate its lease with us. Any claim against such tenant for unpaid , future rent would be subject to a statutory cap that might be substantially less than the remaining rent owed under the lease.
In addition, a bankrupt or insolvent tenant may be authorized to reject and terminate its lease with us. Any claim against such tenant 15 for unpaid , future rent would be subject to a statutory cap that might be substantially less than the remaining rent owed under the lease.
Even the most well-protected information, networks, systems and facilities remain potentially vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected.
Even the most well-protected information, networks, systems and facilities remain vulnerable because the techniques used in such attempted security breaches evolve and generally are not recognized until launched against a target, and in some cases are designed not to be detected and, in fact, may not be detected.
For example, our charter prohibits the actual, beneficial or constructive ownership by any person of more than 9.8% in value or number of shares, whichever is more restrictive, of the outstanding shares 21 of each of our common stock and series C preferred stock, and more than 9.8% in value of the aggregate outstanding shares of all classes and series of our stock.
For example, our charter prohibits the actual, beneficial or constructive ownership by any person of more than 9.8% in value or number of shares, whichever is more restrictive, of the outstanding shares of each of our common stock and series C preferred stock, and more than 9.8% in value of the aggregate outstanding shares of all classes and series of our stock.
We may co-invest in the future with other third parties through partnerships, joint ventures 17 or other entities, acquiring non-controlling interests in or sharing responsibility for managing the affairs of a property, partnership, joint venture or other entity.
We may co-invest in the future with other third parties through partnerships, joint ventures or other entities, acquiring non-controlling interests in or sharing responsibility for managing the affairs of a property, partnership, joint venture or other entity.
No more than 25% of our total assets may be represented by securities, including securities of taxable REIT subsidiaries, other than those securities includable in the 75% asset test. Further, no more than 20% of the value of our total assets may be represented by securities of taxable REIT subsidiaries.
No more than 25% of our total assets may be represented by securities, including securities of taxable REIT subsidiaries, other than those securities includable in the 75% asset test. Further, no more than 25% of the value of our total assets may be represented by securities of taxable REIT subsidiaries.
Changes to the tax laws, with or without retroactive application, could adversely affect our investors or us. We cannot predict how changes in the tax laws might affect our investors or us.
Changes to the tax laws, with or without retroactive application, 25 could adversely affect our investors or us. We cannot predict how changes in the tax laws might affect our investors or us.
We are required to pay property taxes on our properties. These taxes could increase as property tax rates increase or as properties are reassessed by the taxing authorities. For example, under the existing California law commonly referred to as Proposition 13, property tax reassessments generally occur as a result of a “change of ownership” of a property.
We are required to pay property taxes on our properties. These taxes could increase as property tax rates increase or as properties are reassessed by the taxing authorities. For example, under the existing California law commonly referred to as Proposition 13, property tax reassessments generally occur as a result of a “change of ownership” or “new construction” of a property.
Therefore, we cannot assure you that we have qualified as a REIT, or that we will 23 remain qualified as such in the future.
Therefore, we cannot assure you that we have qualified as a REIT, or that we will remain qualified as such in the future.
Our access to third-party sources of capital depends, in part, on: • general market conditions; • the market’s perception of our growth potential; • our current debt levels; • our current and expected future earnings; 14 • our cash flow and cash distributions; and • the market price per share of our common stock.
Our access to third-party sources of capital depends, in part, on: • general market conditions; • the market’s perception of our growth potential; • our current debt levels; • our current and expected future earnings; 13 • our cash flow and cash distributions; and • the market price per share of our common stock.
Some of our properties are subject to ground leases, the termination or expiration of which could cause us to lose our interest in, and the right to receive rental income from, such properties. Ten of our consolidated properties are subject to ground leases (including properties with a portion of the land subject to a ground lease).
Some of our properties are subject to ground leases, the termination or expiration of which could cause us to lose our interest in, and the right to receive rental income from, such properties. Nine of our consolidated properties are subject to ground leases (including properties with a portion of the land subject to a ground lease).
As of December 31, 2024, our three largest tenants were Google, Inc., Netflix, Inc. and Amazon, which together accounted for 20.6% of the HPP’s share of the annualized base rent generated by our office properties.
As of December 31, 2025, our three largest tenants were Google, Inc., Netflix, Inc. and Amazon, which together accounted for 20.6% of the HPP’s share of the annualized base rent generated by our office properties.
We anticipate that the aggregate value of the stock and other securities of any taxable REIT subsidiaries that we own will be less than 20% of the value of our total assets, and we will monitor the value of these investments to ensure compliance with applicable asset test limitations.
We anticipate that the aggregate value of the stock and other securities of any taxable REIT subsidiaries that we own will be less 24 than 25% of the value of our total assets, and we will monitor the value of these investments to ensure compliance with applicable asset test limitations.
An increase in the assessed value of our properties, property tax rates, or potential other new taxes could adversely affect our financial condition, cash flows and our ability to pay dividends to our stockholders.
An increase in the assessed value of our properties or property tax rates or the addition of new taxes could adversely affect our financial condition, cash flows and our ability to pay dividends to our stockholders.
Risks Related to Our Organizational Structure The series A preferred units that were issued to some contributors in connection with our IPO in exchange for the contribution of their properties have certain preferences, which could limit our ability to pay dividends or other distributions to the holders of our securities or engage in certain business combinations, recapitalizations or other fundamental changes. 20 In exchange for the contribution of properties to our portfolio in connection with our IPO, some contributors received series A preferred units in our operating partnership.
Risks Related to Our Organizational Structure The series A preferred units that were issued to some contributors in connection with our IPO in exchange for the contribution of their properties have certain preferences, which could limit our ability to pay dividends or other distributions to the holders of our securities or engage in certain business combinations, recapitalizations or other fundamental changes.
We may be unable to renew leases, lease vacant space or re-let space as leases expire. As of December 31, 2024, approxi mately 28.7% of the HPP’s share of the square footage of the office properties (including our development and redevelopment properties) in our portfolio was available, taking into account uncommenced leases signed as of December 31, 2024.
We may be unable to renew leases, lease vacant space or re-let space as leases expire. As of December 31, 2025, approxi mately 31.3% of the HPP’s share of the square footage of the office properties (including our development and redevelopment properties) in our portfolio was available, taking into account uncommenced leases signed as of December 31, 2025.
Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers. As of December 31, 2024, we had 20 joint ventures.
Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on co-venturers’ financial condition and disputes between us and our co-venturers. As of December 31, 2025, we had 18 joint ventures.
As of December 31, 2024, these units have an aggregate liquidation preference of approximately $9.8 million and have a preference as to distributions and upon liquidation that could limit our ability to pay dividends on series C preferred stock and common stock.
As of December 31, 2025, these units have an aggregate liquidation preference of approximately $2.8 million and have a preference as to distributions and upon liquidation that could limit our ability to pay dividends on series C preferred stock and common stock.
In making this determination, our Board considers a variety of relevant factors, including, without limitation, the obligations under our various financing agreements, projected taxable income, compliance with our debt covenants, long-term operating projections, expected capital requirements and risks affecting our business.
In making this determination, our Board considers a variety of relevant factors, including, without limitation, the obligations under our various financing agreements, projected taxable income, compliance with our debt covenants, long-term operating projections, expected capital requirements, the annual distribution requirements under the REIT provisions of the Code and risks affecting our business.
As a result, our financial condition, results of operations, cash flow and the per share trading price of our securities could be adversely affected. We depend on significant tenants. As of December 31, 2024, the 15 largest tenants in our office portfolio represented approximately 44.9% of the HPP’s share of the total annualized base rent generated by our office properties.
As a result, our financial condition, results of operations, cash flow and the per share trading price of our securities could be adversely affected. We depend on significant tenants. As of December 31, 2025, the 15 largest tenants in our office portfolio represented approximately 42.7% of the HPP’s share of the total annualized base rent generated by our office properties.
Some of our workforce is covered by collective bargaining agreements and our business may be adversely affected by any disruptions caused by union activities. As of December 31, 2024, approximately 20% of our employees are covered by collective bargaining agreements.
Some of our workforce is covered by collective bargaining agreements and our business may be adversely affected by any disruptions caused by union activities. As of December 31, 2025, approximately 22% of our employees are covered by collective bargaining agreements.
Accordingly, we may be unable to anticipate these techniques or to implement adequate security barriers or other preventative measures, and thus it is impossible for us to entirely mitigate this risk . 27 A security breach or other significant disruption involving our IT networks and related systems could: • disrupt the proper functioning of our networks and systems and therefore our operations and/or those of certain of our tenants; • result in misstated financial reports, violations of loan covenants, and/or missed reporting deadlines; • result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; • result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; • result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; • require significant management attention and resources to remedy any resulting damages; • subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or • damage our reputation among our tenants and investors generally.
A security breach or other significant disruption involving our IT networks and related systems could: • disrupt the proper functioning of our networks and systems and therefore our operations and/or those of certain of our tenants; • result in misstated financial reports, violations of loan covenants, and/or missed reporting deadlines; • result in our inability to properly monitor our compliance with the rules and regulations regarding our qualification as a REIT; • result in the unauthorized access to, and destruction, loss, theft, misappropriation or release of proprietary, confidential, sensitive or otherwise valuable information of ours or others, which others could use to compete against us or for disruptive, destructive or otherwise harmful purposes and outcomes; • result in our inability to maintain the building systems relied upon by our tenants for the efficient use of their leased space; 27 • require significant management attention and resources to remedy any resulting damages; • subject us to claims for breach of contract, damages, credits, penalties or termination of leases or other agreements; or • damage our reputation among our tenants and investors generally.
As of December 31, 2024, we had $1.1 billion in variable rate debt, excluding debt that is effectively fixed through the use of interest rate swaps. In addition, we may incur additional variable rate debt in the future.
As of December 31, 2025, we had $0.6 billion in variable rate debt, excluding debt that is effectively fixed through the use of interest rate swaps. In addition, we may incur additional variable rate debt in the future.
Higher leverage also increases the risk of default on our obligations. In addition, a change in our investment policies, including the manner in which we allocate our resources across our portfolio or the types of assets in which we seek to invest, may increase our exposure to interest rate risk, real estate market fluctuations and liquidity risk.
In addition, a change in our investment policies, including the manner in which we allocate our resources across our portfolio or the types of assets in which we seek to invest, may increase our exposure to interest rate risk, real estate market fluctuations and liquidity risk.
U.S. stockholders that are individuals, trusts and estates generally may deduct up to 20% of the ordinary dividends (e.g., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning before January 1, 2026.
U.S. stockholders that are individuals, trusts and estates generally may deduct up to 20% of the ordinary dividends (e.g., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT.
In addition, periods of economic downturn or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur, could result in a general decline in rents or an increased incidence of defaults under existing leases, which would adversely affect our financial condition, results of operations, cash flow and per share trading price of our securities.
In addition, periods of economic downturn or recession, rising interest rates or declining demand for real estate, or the public perception that any of these events may occur, could result in a general decline in rents or an increased incidence of defaults under existing leases, which would adversely affect our financial condition, results of operations, cash flow and per share trading price of our securities. 18 Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition.
The restrictions on ownership and transfer of our stock may: • discourage a tender offer or other transactions or a change in management or of control that might involve a premium price for our common stock or series C preferred stock or that our stockholders otherwise believe to be in their best interests; or • result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of a charitable beneficiary and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares.
The restrictions on ownership and transfer of our stock may: • discourage a tender offer or other transactions or a change in management or of control that might involve a premium price for our common stock or series C preferred stock or that our stockholders otherwise believe to be in their best interests; or • result in the transfer of shares acquired in excess of the restrictions to a trust for the benefit of a charitable beneficiary and, as a result, the forfeiture by the acquirer of the benefits of owning the additional shares. 21 We could increase the number of authorized shares of stock, classify and reclassify unissued stock and issue stock without stockholder approval.
An additional approximately 15.0% of the HPP’s share of the square footage of the office properties in our portfolio is scheduled to expire in 2025 (includes leases scheduled to expire on December 31, 2024).
An additional approximately 7.3% of the HPP’s share of the square footage of the office properties in our portfolio is scheduled to expire in 2026 (includes leases scheduled to expire on December 31, 2025).
In addition, while such agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging .
In addition, while such agreements are intended to lessen the impact of rising interest rates on us, they also expose us to the risk that the other parties to the agreements will not perform, we could incur significant costs associated with the settlement of the agreements, the agreements will be unenforceable and the underlying transactions will fail to qualify as highly-effective cash flow hedges under Accounting Standards Codification (“ASC”) 815, Derivatives and Hedging . 14 Mortgage debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in a property or group of properties subject to mortgage debt.
From time to time, including recently, lawmakers and voters have initiated efforts to repeal or amend Proposition 13, which, if successful, would increase the assessed value or tax rates for our properties in California. Additionally, there is similar legislation being proposed in other state and local jurisdictions in which our properties are located.
From time to time, lawmakers and voters have initiated efforts to repeal or amend Proposition 13, which, if successful, would have increased the assessed value or tax rates for our properties in California. Additionally, legislation changing property tax rates or assessments in other state and local jurisdictions in which our properties are located may be proposed.
Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, such characterization is a factual determination and we cannot assure you that the IRS would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors, which, if met, would prevent any such sales from being treated as prohibited transactions. 24 Our ownership of taxable REIT subsidiaries is subject to certain restrictions, and we will be required to pay a 100% penalty tax on certain income or deductions if our transactions with our taxable REIT subsidiaries are not conducted on arm’s length terms.
Although we do not intend to hold any properties that would be characterized as held for sale to customers in the ordinary course of our business, such characterization is a factual determination and we cannot assure you that the IRS would agree with our characterization of our properties or that we will always be able to make use of the available safe harbors, which, if met, would prevent any such sales from being treated as prohibited transactions.
Because the property tax authorities may take extensive time to determine if there has a been a “change of ownership” or the actual reassessed value of the property, the potential reassessment may not be determined until a period after the transaction has occurred.
Because the property tax authorities may take significant time to determine a change of ownership or new construction or the actual reassessed value of a property, the potential reassessment may not be determined until a period after the transaction or construction has occurred.
Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations (including managing our building systems) and, in some cases, may be critical to the operations of certain of our tenants.
We and others in our industry are targets for threat actors because we hold confidential and sensitive information. Our IT networks and related systems are essential to the operation of our business and our ability to perform day-to-day operations (including managing our building systems) and, in some cases, may be critical to the operations of certain of our tenants.
Ineffective internal and disclosure controls could also cause investors to lose confidence in our reported financial information, which would likely have a negative effect on the per share trading price of our securities.
Ineffective internal and disclosure controls could also cause investors to lose confidence in our reported financial information, which would likely have a negative effect on the per share trading price of our securities. 17 Volatility in market and economic conditions may impact the accuracy of the various estimates used in the preparation of our financial statements and footnotes to the financial statements.
We may be unable to realize our investment objectives by sale, other disposition or refinancing at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy.
Return of capital and realization of gains, if any, from an investment generally will occur upon disposition or refinancing of the underlying property. We may be unable to realize our investment objectives by sale, other disposition or refinancing at attractive prices within any given period of time or may otherwise be unable to complete any exit strategy.
Our charter, bylaws, the partnership agreement of our operating partnership and Maryland law also contain other provisions that may delay, defer or prevent a transaction or a change of control that our stockholders otherwise believe to be in their best interest.
Our charter, bylaws, the partnership agreement of our operating partnership and Maryland law also contain other provisions that may delay, defer or prevent a transaction or a change of control that our stockholders otherwise believe to be in their best interest. 22 Our board of directors may change our investment and financing policies without stockholder approval and we may become more highly leveraged, which may increase our risk of default under our debt obligations.
As a result of all these factors, our failure to qualify as a REIT also could impair our ability to expand our business and raise capital, and could materially and adversely affect the value of our securities.
As a result of all these factors, our failure to qualify as a REIT also could impair our ability to expand our business and raise capital, and could materially and adversely affect the value of our securities. 23 Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations.
Beginning with the fourth quarter of 2024, we also modified certain of our adjusted EBITDA to fixed charges covenants to provide for a minimum required ratio of 1.4x for such covenants which previously required a minimum ratio of 1.5x and modified certain of our unencumbered NOI to unsecured interest expense covenants to provide for a minimum required ratio of 1.75x for such covenants which previously required a minimum ratio of 2.0x.
Beginning with the third quarter of 2025, we temporarily modified certain of our unencumbered NOI to unsecured interest expense covenants to provide for a minimum required ratio of 1.75x for such covenants which previously required a minimum ratio of 2.0x for any fiscal quarter ending on or prior to December 31, 2026.
Our ability to pay expected dividends to our stockholders depends on our ability to generate revenues in excess of expenses, pay scheduled principal payments on debt and pay capital expenditure requirements. Events and conditions generally applicable to owners and operators of real property that are beyond our control may decrease cash available for distribution and the value of our properties.
Events and conditions generally applicable to owners and operators of real property that are beyond our control may decrease cash available for distribution and the value of our properties.
Further, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. Our board of directors may alter or eliminate our current policy on borrowing at any time without stockholder approval. If this policy changed, we could become more highly leveraged, which could result in an increase in our debt service.
Our investment and financing policies are exclusively determined by our board of directors. Accordingly, our stockholders do not control these policies. Further, our organizational documents do not limit the amount or percentage of indebtedness, funded or otherwise, that we may incur. Our board of directors may alter or eliminate our current policy on borrowing at any time without stockholder approval.
We cannot assure you that we will be able to make distributions in the future. Any of the foregoing could adversely affect the market price of our publicly traded securities. Risks Related to the Real Estate Industry Our performance and value are subject to risks associated with real estate assets and the real estate industry.
We cannot assure you that we will be able to make distributions in the future. Any of the foregoing could adversely affect the market price of our publicly traded securities. We cannot provide any assurance that our Quixote business will be able to fully respond to the challenging market conditions prevailing within the entertainment industry.
This could result in non-renewals by tenants upon expiration of their leases, which could adversely affect our financial condition, results of operations, cash flow and the per share trading price of our securities. 16 The actual rents we receive for the properties in our portfolio may be less than our asking rents, and we may experience lease roll-down from time to time.
If we are unable to do so or capital is otherwise unavailable, we may be unable to make the required expenditures. This could result in non-renewals by tenants upon expiration of their leases, which could adversely affect our financial condition, results of operations, cash flow and the per share trading price of our securities.
Although we make efforts to maintain the security and integrity of our IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, there can be no assurance that our security efforts and measures will be effective or that attempted security breaches or disruptions would not be successful or damaging.
Although we make efforts to maintain the security and integrity of our IT networks and related systems, and we have implemented various measures to manage the risk of a security breach or disruption, the security measures applied to our systems cannot guarantee protection against all cyber risks.
We have suspended paying dividends on our common stock and we cannot assure you of our ability to pay dividends in the future or the amount of any dividends.
Although our management team believes it has been prudent and used reasonable judgment in making these estimates, it is possible actual results may differ from these estimates. We have suspended paying dividends on our common stock and we cannot assure you of our ability to pay dividends in the future or the amount of any dividends.
As a result, our ability to promptly sell one or more properties in our portfolio in response to changing economic, financial and investment conditions is limited. Return of capital and realization of gains, if any, from an investment generally will occur upon disposition or refinancing of the underlying property.
The real estate investments made, and to be made, by us are relatively difficult to sell quickly. As a result, our ability to promptly sell one or more properties in our portfolio in response to changing economic, financial and investment conditions is limited.
Removed
Mortgage debt obligations expose us to the possibility of foreclosure, which could result in the loss of our investment in a property or group of properties subject to mortgage debt.
Added
Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our equity and debt securities. As of February 18, 2026, our consolidated debt was approximately $3.4 billion (excluding unconsolidated joint venture debt).
Removed
We have modified certain of our leverage ratio covenants for periods through December 31, 2024 to provide for a maximum ratio of 65% for such covenants which previously required a maximum ratio of 60%.
Added
The following table presents our ratio of debt to total market capitalization (counting series A preferred units as debt) as of February 18, 2026 (in thousands, except percentage): Market Capitalization February 18, 2026 Unsecured and secured debt (1) $ 3,366,183 Series A redeemable preferred units 2,795 Total consolidated debt 3,368,978 Equity capitalization (2) 846,541 TOTAL CONSOLIDATED MARKET CAPITALIZATION $ 4,215,519 Total consolidated debt/total consolidated market capitalization 79.9 % _____________ 1.
Removed
If we are unable to do so or capital is otherwise unavailable, we may be unable to make the required expenditures.
Added
Excludes joint venture partner debt and unamortized deferred financing costs and loan discounts/premiums. 2.
Removed
Illiquidity of real estate investments could significantly impede our ability to respond to adverse changes in the performance of our properties and harm our financial condition. The real estate investments made, and to be made, by us are relatively difficult to sell quickly.
Added
Equity capitalization represents the shares of common stock outstanding (including unvested restricted shares), pre-funded warrants, OP and LTIP units outstanding, restricted performance units and dilutive shares multiplied by the closing price of $6.34, as reported by the NYSE, on February 18, 2026 as well as the aggregate value of the Series C preferred stock liquidation preference as of February 18, 2026.
Removed
We could increase the number of authorized shares of stock, classify and reclassify unissued stock and issue stock without stockholder approval.
Added
Our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. In November 2024, May 2025 and June 2025, our senior debt credit ratings were downgraded.
Removed
Our board of directors may change our investment and financing policies without stockholder approval and we may become more highly leveraged, which may increase our risk of default under our debt obligations. Our investment and financing policies are exclusively determined by our board of directors. Accordingly, our stockholders do not control these policies.
Added
In the event our senior debt is further downgraded from its current ratings, we would likely incur higher borrowing costs and/or difficulty in obtaining additional financing. Our degree of leverage could also make us more vulnerable to a downturn in business or the economy generally.
Removed
Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations.
Added
There is a risk that changes in our debt to total market capitalization ratio, which is in part a function of our stock price, or our ratio of indebtedness to other measures of asset value used by financial analysts may have an adverse effect on the market price of our equity or debt securities.
Removed
The risk of a security breach or disruption, particularly through cyber attacks or cyber intrusions, including by computer hackers, foreign governments and cyber terrorists, has generally increased as the number, intensity and sophistication of attempted attacks and intrusions from around the world have recently increased.
Added
The actual rents we receive for the properties in our portfolio may be less than our asking rents, and we may experience lease roll-down from time to time.
Added
Various estimates are used in the preparation of our financial statements, including estimates related to asset and liability valuations (or potential impairments), and receivables. Often these estimates require the use of market data values and involve estimates of future performance or receivables collectability, all of which can be difficult to accurately predict.
Added
Our Quixote business has experienced operating losses during calendar year 2025 from decreased production activity, leading us to seek measures to reduce its cost structure to remain competitive. In this regard, we have terminated certain leases, closed operating locations and reduced our staff.
Added
While we continue to pursue additional cost reduction initiatives, we cannot provide any assurance that these measures will be successful or sufficient to return the business to profitability.
Added
If we are unable to continue to operate the business while meeting these objectives, this will have a material adverse effect on our Quixote operations and our ability to produce profits from our investments in these operations in the future.
Added
Risks Related to the Real Estate Industry Our performance and value are subject to risks associated with real estate assets and the real estate industry. Our ability to pay expected dividends to our stockholders depends on our ability to generate revenues in excess of expenses, pay scheduled principal payments on debt and pay capital expenditure requirements.
Added
In exchange for the contribution of properties to our portfolio in connection with our IPO, some contributors received series A preferred units in our operating partnership.
Added
If this policy changed, we could become more highly leveraged, which could result in an increase in our debt service. Higher leverage also increases the risk of default on our obligations.
Added
Our ownership of taxable REIT subsidiaries is subject to certain restrictions, and we will be required to pay a 100% penalty tax on certain income or deductions if our transactions with our taxable REIT subsidiaries are not conducted on arm’s length terms.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Board members receive presentations on cybersecurity topics from our SVP, Information Technology, as well as our Risk Committee, which includes our Chief Financial Officer, EVP, Business Affairs and General Counsel and Chief Risk Officer, internal security staff or external experts as part of the Board’s continuing education on topics that impact public companies.
Board members receive presentations on cybersecurity topics from our SVP, Information Technology, as well as our Risk Committee, which includes our Chief Financial Officer, General Counsel and Chief Risk Officer, internal security staff or external experts as part of the Board’s continuing education on topics that impact public companies.
ITEM 1C. Cybersecurity Cybersecurity Risk Management and Strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. Our cybersecurity risk management program includes a cybersecurity incident response plan. We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework.
ITEM 1C. Cybersecurity Cybersecurity Risk Management and Strategy We have developed and implemented a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of our critical systems and information. We design and assess our program based on the National Institute of Standards and Technology Cybersecurity Framework.
Our cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment; • a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; • the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls; • cybersecurity awareness training of our employees, incident response personnel, and senior management; • a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and • a third-party risk management process for service providers, suppliers, and vendors.
Our cybersecurity risk management program includes: • risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment; • a security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; • the use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security controls; • cybersecurity awareness training of our employees, incident response personnel, and senior management; • a cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; • a third-party risk management process for service providers, suppliers, and vendors based on our assessment of each provider’s operationality, criticality and respective risk profile; and • incident response training for security personnel, including periodic tabletop exercises and penetration testing designed to test the effectiveness of our incident response capabilities.
Our management team, including our Chief Financial Officer, EVP, Business Affairs and General Counsel and Chief Risk Officer, is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants.
Our management team led by our Chief Financial Officer and General Counsel and Chief Risk Officer, is responsible for assessing and managing our material risks from cybersecurity threats. The team has primary responsibility for our overall cybersecurity risk management program and, through collaboration with our Chief People Officer, supervises both our internal cybersecurity personnel and our retained external cybersecurity consultants.

Item 2. Properties

Properties — owned and leased real estate

27 edited+4 added−6 removed7 unchanged
We own and operate an array of production-related services, including transportation assets, lighting and other production equipment and supplies, which we provide for lease in Los Angeles and New York, as well as Albuquerque and Atlanta. We operate owned purpose-built stages under the Sunset Studios brand, and leased stages and production services assets under the Quixote brand.
We own and operate an array of production-related services, including transportation assets, lighting and other production equipment and supplies, which we provide for lease in Los Angeles and New York, as well as Atlanta and Albuquerque. We operate owned purpose-built stages under the Sunset Studios brand, and leased stages and production services assets under the Quixote brand.
For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of December 31, 2024. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options.
For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of December 31, 2025. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options.
Calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of December 31, 2024. Annualized base rent does not reflect tenant reimbursements. 6. We own 51% of the ownership interest in the consolidated joint venture that owns ICON, EPIC, Harlow, 6040 Sunset and CUE. 7.
Calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of December 31, 2025. Annualized base rent does not reflect tenant reimbursements. 6. We own 51% of the ownership interest in the consolidated joint venture that owns ICON, EPIC, Harlow, 6040 Sunset and CUE. 7.
Annual base rent per leased square foot for in-service studio calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2024. 4. 6,650 square feet located at Sunset Gower Studios was taken off-line for repositioning. 5. 18,594 square feet located at Sunset Las Palmas Studios was taken off-line for repositioning. 6.
Annual base rent per leased square foot for in-service studio calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2025. 4. 6,650 square feet located at Sunset Gower Studios was taken off-line for repositioning. 5. 18,594 square feet located at Sunset Las Palmas Studios was taken off-line for repositioning. 6.
Annualized base rent does not reflect tenant reimbursements. 33 Office Lease Expirations The following table summarizes the lease expirations for in-place office leases as of December 31, 2024, including vacancies. Unless otherwise stated in the footnotes, the information set forth in the table assumes that tenants did not exercise any renewal options.
Annualized base rent does not reflect tenant reimbursements. 33 Office Lease Expirations The following table summarizes the lease expirations for in-place office leases as of December 31, 2025, including vacancies. Unless otherwise stated in the footnotes, the information set forth in the table assumes that tenants did not exercise any renewal options.
Presented on an annualized basis and is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of December 31, 2024, by (ii) 12. Annualized base rent does not reflect tenant reimbursements. 5.
Presented on an annualized basis and is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of December 31, 2025, by (ii) 12. Annualized base rent does not reflect tenant reimbursements. 5.
ABR per square foot at expiration for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases, divided by (ii) square footage under commenced leases as of December 31, 2024. 4.
ABR per square foot at expiration for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases, divided by (ii) square footage under commenced leases as of December 31, 2025. 4.
Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of December 31, 2024, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.
Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of December 31, 2025, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.
Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)), including uncommenced leases, as of December 31, 2024 (ii) by 12.
Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)), including uncommenced leases, as of December 31, 2025 (ii) by 12.
Annualized base rents related to Bentall Centre have been converted from CAD to USD using the foreign currency exchange rate as of December 31, 2024. 2.
Annualized base rents related to Bentall Centre have been converted from CAD to USD using the foreign currency exchange rate as of December 31, 2025. 2.
Percent leased for in-service studio is the average percent leased for the 12 months ended December 31, 2024. 2. Annual base rent for in-service studio reflects actual base rent for the 12 months ended December 31, 2024, excluding tenant reimbursements. 3.
Percent leased for in-service studio is the average percent leased for the 12 months ended December 31, 2025. 2. Annual base rent for in-service studio reflects actual base rent for the 12 months ended December 31, 2025, excluding tenant reimbursements. 3.
Calculated as (i) square footage under commenced leases as of December 31, 2024, divided by (ii) total square feet, expressed as a percentage. 31 3. Calculated as (i) square footage under commenced and uncommenced leases as of December 31, 2024, divided by (ii) total square feet, expressed as a percentage. 4.
Calculated as (i) square footage under commenced leases as of December 31, 2025, divided by (ii) total square feet, expressed as a percentage. 3. Calculated as (i) square footage under commenced and uncommenced leases as of December 31, 2025, divided by (ii) total square feet, expressed as a percentage. 31 4.
Does not include 29 month-to-month leases. 2. Annualized base rent per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of December 31, 2024 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of December 31, 2024.
Does not include 35 month-to-month leases. 2. Annualized base rent per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of December 31, 2025 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of December 31, 2025.
Where applicable, rental rates converted to USD using the foreign currency exchange rate as of December 31, 2024. 3.
Where applicable, rental rates converted to USD using the foreign currency exchange rate as of December 31, 2025. 3.
Netflix, Inc. expirations: (i) 326,792 square feet at ICON, (ii) 301,127 square feet at EPIC and (iii) 94,386 square feet at CUE. 4. Amazon expirations: (i) 659,150 square feet at 1918 Eighth in September 2030 and (ii) 191,814 square feet at 5th & Bell in May 2031. 5.
Netflix, Inc. expirations: (i) 326,792 square feet at ICON, (ii) 301,127 square feet at EPIC and (iii) 94,386 square feet at CUE. 4. Amazon expirations: (i) 659,150 square feet at 1918 Eighth on September 30, 2030 and (ii) 191,814 square feet at 5th & Bell on May 31, 2031. 5.
We also own the lease rights to another 5 s tudios with 24 sound stages t otaling approximatel y 0.6 million square feet located in Los Angeles.
We also own the lease rights to another 5 s tudios with 20 sound stages t otaling approximatel y 0.4 million square feet located in Los Angeles.
Office Portfolio Our office portfolio consists of 45 office properties totaling approximately 14.6 million square feet located in Los Angeles, the San Francisco Bay Area, Seattle and Vancouver, British Columbia. In-Service Office Portfolio Our in-service office portfolio consists of owned office properties, excluding repositioning, redevelopment, development and held for sale properties.
Office Portfolio Our office portfolio consists of 41 office properties totaling approximately 13.9 million square feet located in Los Angeles, the San Francisco Bay Area, Seattle and Vancouver, British Columbia. In-Service Office Portfolio Our in-service office portfolio consists of owned office properties, excluding repositioning, redevelopment, development and held for sale properties.
ITEM 2. Properties As of December 31, 2024, our portfolio of owned real estate consisted of 57 properties (36 wholly-owned properties, 14 properties owned by joint ventures and seven land properties) totaling approximately 20 million square feet and located primarily in Los Angeles, the San Francisco Bay Area, Seattle, New York, Vancouver, British Columbia and Greater London, United Kingdom.
ITEM 2. Properties As of December 31, 2025, our portfolio of owned real estate consisted of 52 properties (33 wholly-owned properties, 13 properties owned by joint ventures and six land properties) totaling approximately 19 million square feet and located primarily in Los Angeles, the San Francisco Bay Area, Seattle, New York, Vancouver, British Columbia and Greater London, United Kingdom.
Reflects management offices occupied by the Company with various expiration dates. 34 Historical Office Tenant Improvements and Leasing Commissions The following table represents 100% share of consolidated and unconsolidated joint ventures, summarizing historical information regarding tenant improvement and leasing commission costs for our office properties : Year Ended December 31, 2024 2023 2022 Renewals (1) Number of leases 153 149 162 Square feet 816,965 1,125,614 1,172,126 Tenant improvement costs per square foot (2)(3) $ 18.12 $ 8.77 $ 11.66 Leasing commission costs per square foot (2) 9.50 6.80 9.50 Total tenant improvement and leasing commission costs $ 27.62 $ 15.57 $ 21.16 New leases (4) Number of leases 163 117 140 Square feet 1,212,377 572,833 943,650 Tenant improvement costs per square foot (2)(3) $ 48.82 $ 38.15 $ 65.71 Leasing commission costs per square foot (2) 14.70 10.73 18.10 Total tenant improvement and leasing commission costs $ 63.52 $ 48.88 $ 83.81 TOTAL Number of leases 316 266 302 Square feet 2,029,342 1,698,447 2,115,776 Tenant improvement costs per square foot (2)(3) $ 36.51 $ 18.49 $ 36.41 Leasing commission costs per square foot (2) 12.61 8.10 13.44 TOTAL TENANT IMPROVEMENT AND LEASING COMMISSION COSTS $ 49.12 $ 26.59 $ 49.85 _____________ 1.
Reflects management offices occupied by the Company with various expiration dates. 34 Historical Office Tenant Improvements and Leasing Commissions The following table represents 100% share of consolidated and unconsolidated joint ventures, summarizing historical information regarding tenant improvement and leasing commission costs for our office properties : Year Ended December 31, 2025 2024 2023 Renewals (1) Number of leases 129 153 149 Square feet 830,247 816,965 1,125,614 Tenant improvement costs per square foot (2)(3) $ 13.35 $ 18.12 $ 8.77 Leasing commission costs per square foot (2) 9.32 9.50 6.80 Total tenant improvement and leasing commission costs $ 22.67 $ 27.62 $ 15.57 New leases (4) Number of leases 159 163 117 Square feet 1,391,749 1,212,377 572,833 Tenant improvement costs per square foot (2)(3) $ 70.32 $ 48.82 $ 38.15 Leasing commission costs per square foot (2) 15.53 14.70 10.73 Total tenant improvement and leasing commission costs $ 85.85 $ 63.52 $ 48.88 TOTAL Number of leases 288 316 266 Square feet 2,221,996 2,029,342 1,698,447 Tenant improvement costs per square foot (2)(3) $ 47.66 $ 36.51 $ 18.49 Leasing commission costs per square foot (2) 13.06 12.61 8.10 TOTAL TENANT IMPROVEMENT AND LEASING COMMISSION COSTS $ 60.72 $ 49.12 $ 26.59 _____________ 1.
Salesforce.com subleased 259,416 square feet at Rincon Center to Twilio Inc. in 2018 and in 2020 began paying us 50% of cash rents received pursuant to the sublease, or an average of $340,000 per month with annual growth thereafter, in addition to contractual base rent. 6.
Salesforce.com subleases 182,378 feet at Rincon Center to Twilio Inc. and pays 50% of cash rents received pursuant to the sublease at a current average of $280,000 per month with annual growth thereafter, in addition to contractual base rent. 8.
Google, Inc. expirations: (i) 182,672 square feet in February 2025 at Foothill Research Center (held-for-sale), (ii) 208,843 square feet at Rincon Center in February 2028, (iii) 207,857 square feet at 3400 Hillview in November 2028 (early termination right between March 2026-February 2027) and (iv) 41,354 square feet at Ferry Building in October 2029. 3.
Google, Inc. expirations: (i) 208,843 square feet at Rincon Center on February 29, 2028, (ii) 207,857 square feet at 3400 Hillview on November 30, 2028 and (iii) 41,354 square feet at Ferry Building on October 31, 2029. 3.
City and County of San Francisco expirations: (i) 4,100 square feet at 1455 Market in December 2024, (ii) 24,474 square feet at 1455 Market in June 2025, (iii) 39,573 square feet at 1455 Market in September 2033, (iv) 157,154 square feet at 1455 Market in April 2045 and (v) 706 square feet at Ferry Building in April 2067. 7.
City and County of San Francisco expirations: (i) 39,573 square feet at 1455 Market on September 19, 2033, (ii) 389,316 square feet at 1455 Market on April 30, 2045 and (iii) 706 square feet at Ferry Building on April 30, 2067. 6.
Annualized base rent and rental rates have been converted from CAD to USD using the foreign currency exchange rate as of December 31, 2024.
We own 55% of the ownership interest in the consolidated joint ventures that own Ferry Building and1918 Eighth. 8. We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. Annualized base rent and rental rates have been converted from CAD to USD using the foreign currency exchange rate as of December 31, 2025.
As of December 31, 2024, the weighted average remaining lease term for our in-service office portfolio was 4.6 years 30 The following table summarizes information relating to the consolidated and unconsolidated in-service office properties owned as of December 31, 2024: Location Submarket Square Feet (1) Percent Occupied (2) Percent Leased (3) Annualized Base Rent (4) Annualized Base Rent Per Square Foot (5) Los Angeles, California ICON (6) Hollywood 326,792 100.0 % 100.0 % $ 21,911,055 $ 67.05 EPIC (6) Hollywood 301,127 100.0 100.0 23,198,824 77.04 Harlow (6) Hollywood 129,931 100.0 100.0 8,212,625 63.21 6040 Sunset (6) Hollywood 114,958 100.0 100.0 7,219,752 62.80 CUE (6) Hollywood 94,386 100.0 100.0 6,411,443 67.93 11601 Wilshire West Los Angeles 499,758 90.8 91.4 21,783,475 47.98 Element LA West Los Angeles 284,037 100.0 100.0 19,520,478 68.73 Fourth & Traction Downtown Los Angeles 131,701 100.0 100.0 6,359,052 48.28 San Francisco Bay Area, California Concourse North San Jose 941,616 64.9 68.4 27,558,750 45.10 Gateway North San Jose 609,554 67.1 68.4 19,061,922 46.63 Metro Plaza North San Jose 468,599 57.5 57.5 12,760,908 47.36 Skyport Plaza North San Jose 418,465 6.1 6.1 779,125 30.59 1740 Technology North San Jose 215,857 100.0 100.0 11,680,792 54.11 1455 Market San Francisco 1,038,134 60.4 60.4 33,332,037 53.17 Rincon Center San Francisco 531,721 97.8 97.8 34,992,537 67.26 Ferry Building (7) San Francisco 266,402 98.3 98.9 23,760,539 90.72 901 Market San Francisco 204,381 54.6 54.6 3,772,675 33.79 875 Howard San Francisco 191,201 100.0 100.0 13,568,955 70.97 625 Second San Francisco 138,354 38.7 38.7 3,070,236 57.35 275 Brannan San Francisco 57,120 100.0 100.0 5,125,143 89.73 Palo Alto Square Palo Alto 318,166 95.7 95.7 29,407,582 96.56 3400 Hillview Palo Alto 207,857 100.0 100.0 16,762,265 80.64 Page Mill Hill Palo Alto 181,965 58.2 58.2 7,095,577 67.01 Clocktower Square Palo Alto 100,655 100.0 100.0 9,281,455 92.21 Page Mill Center Palo Alto 96,062 82.7 82.7 5,401,865 67.98 Towers at Shore Center Redwood Shores 334,695 82.5 82.5 20,433,340 73.98 Shorebreeze Redwood Shores 230,931 75.5 75.5 11,259,650 64.59 555 Twin Dolphin Redwood Shores 201,129 65.2 67.8 8,442,453 64.39 333 Twin Dolphin Redwood Shores 183,072 59.3 59.3 6,462,774 59.58 Metro Center Foster City 724,381 86.5 87.9 38,606,059 61.64 Techmart Santa Clara 284,903 70.8 73.1 10,085,953 50.03 Seattle, Washington 1918 Eighth (7) Denny Triangle 667,724 99.4 99.4 29,212,128 44.02 Hill7 (7) Denny Triangle 285,310 99.6 100.0 12,672,485 44.61 5th & Bell Denny Triangle 197,136 100.0 100.0 8,225,155 41.72 Met Park North Denny Triangle 189,451 25.9 25.9 1,217,227 24.83 505 First Pioneer Square 291,286 23.0 23.0 2,154,224 32.20 83 King Pioneer Square 186,366 73.3 73.3 6,050,841 44.30 450 Alaskan Pioneer Square 171,594 100.0 100.0 7,680,881 44.76 411 First Pioneer Square 164,799 95.3 95.3 5,883,389 37.46 95 Jackson Pioneer Square 31,613 45.8 45.8 478,203 33.00 Vancouver, British Columbia Bentall Centre (8) Downtown Vancouver 1,537,159 88.6 89.5 39,517,317 29.02 Total In-Service 13,550,348 78.3 % 78.9 % $ 580,411,146 $ 54.71 _____________ 1.
As of December 31, 2025, the weighted average remaining lease term for our in-service office portfolio was 4.9 years 30 The following table summarizes information relating to the consolidated and unconsolidated in-service office properties owned as of December 31, 2025: Location Submarket Square Feet (1) Percent Occupied (2) Percent Leased (3) Annualized Base Rent (4) Annualized Base Rent Per Square Foot (5) Los Angeles, California ICON (6) Hollywood 326,792 100.0 % 100.0 % $ 22,582,675 $ 69.10 EPIC (6) Hollywood 301,127 100.0 100.0 23,885,394 79.32 Harlow (6) Hollywood 129,931 100.0 100.0 8,448,785 65.03 6040 Sunset (6) Hollywood 114,958 100.0 100.0 999,996 8.70 CUE (6) Hollywood 94,386 100.0 100.0 6,603,787 69.97 11601 Wilshire West Los Angeles 501,078 93.5 94.7 22,148,575 47.28 Fourth & Traction Downtown Los Angeles 131,701 100.0 100.0 6,549,823 49.73 San Francisco Bay Area, California Concourse North San Jose 943,052 57.7 58.6 23,379,131 42.97 Gateway North San Jose 608,895 72.6 74.4 20,379,297 46.09 Metro Plaza North San Jose 480,039 60.3 60.3 13,967,987 48.28 Skyport Plaza North San Jose 419,142 10.4 10.9 1,187,925 27.37 1740 Technology North San Jose 215,857 100.0 100.0 12,031,216 55.74 1455 Market San Francisco 1,007,646 47.2 47.2 18,822,822 39.54 Rincon Center San Francisco 530,135 97.4 97.4 34,346,022 66.49 Ferry Building (7) San Francisco 266,402 98.8 99.9 25,461,952 96.71 901 Market San Francisco 204,381 32.4 32.4 3,723,320 56.27 875 Howard San Francisco 188,252 83.9 83.9 13,194,810 83.56 275 Brannan San Francisco 57,120 100.0 100.0 3,427,200 60.00 Palo Alto Square Palo Alto 318,180 98.4 98.4 29,463,288 94.15 3400 Hillview Palo Alto 207,857 100.0 100.0 17,265,132 83.06 Page Mill Hill Palo Alto 182,562 75.5 75.5 8,080,150 58.59 Page Mill Center Palo Alto 172,666 100.0 100.0 11,553,425 66.91 Clocktower Square Palo Alto 100,655 100.0 100.0 9,456,493 93.95 Towers at Shore Center Redwood Shores 334,570 75.3 75.7 18,567,027 73.73 Shorebreeze Redwood Shores 230,931 69.7 69.7 10,427,380 64.75 555 Twin Dolphin Redwood Shores 201,219 68.3 70.1 8,598,991 62.58 333 Twin Dolphin Redwood Shores 183,035 56.3 56.3 6,191,897 60.12 Metro Center Foster City 724,121 88.3 89.5 37,905,051 59.28 Techmart Santa Clara 285,764 89.0 90.0 11,305,679 44.44 Seattle, Washington 1918 Eighth (7) Denny Triangle 667,724 99.4 99.4 29,971,507 45.16 Hill7 Denny Triangle 285,310 46.9 46.9 5,460,279 40.84 5th & Bell Denny Triangle 197,136 100.0 100.0 8,443,294 42.83 Met Park North Denny Triangle 191,450 25.6 40.5 1,251,258 25.52 505 First Pioneer Square 291,290 25.5 25.5 2,163,813 29.14 83 King Pioneer Square 185,790 35.6 35.6 1,470,233 22.23 450 Alaskan Pioneer Square 171,594 95.9 95.9 7,638,438 46.43 411 First Pioneer Square 164,426 89.8 95.2 5,361,744 36.31 95 Jackson Pioneer Square 32,078 76.4 76.4 360,888 14.73 Vancouver, British Columbia Bentall Centre (8) Downtown Vancouver 1,528,789 92.5 93.2 43,483,392 30.74 Total In-Service 13,178,041 76.3 % 77.0 % $ 535,560,076 $ 53.27 _____________ 1.
Office Tenant Diversification The following table provides information regarding the 15 largest tenants in our office portfolio based on HPP’s share of annualized base rent as of December 31, 2024: Tenant # of Properties Lease Expiration Total Occupied Square Feet HPP’s Share Annualized Base Rent (1) Percent of Annualized Base Rent 1 Google, Inc. 4 2025-2029 640,726 (2) $ 53,520,411 10.6 % 2 Netflix, Inc. 3 2031 722,305 (3) 26,275,874 5.2 3 Amazon 2 2030-2031 850,964 (4) 24,114,735 4.8 4 Riot Games, Inc. 1 2030 284,037 19,520,478 3.9 5 Uber Technologies, Inc. 1 2025 325,445 19,169,077 3.8 6 Salesforce.com 1 2025-2028 265,394 (5) 15,339,075 3.0 7 Nutanix, Inc. 1 2030 215,857 11,680,792 2.3 8 City and County of San Francisco 2 2024-2067 226,007 (6) 9,198,343 1.8 9 Dell EMC Corporation 2 2026-2027 130,021 (7) 9,033,014 1.8 10 Coupa Software, Inc. 1 2033 100,654 7,841,953 1.6 11 GitHub, Inc. 2 2024-2030 92,450 (8) 7,298,651 1.4 12 PayPal, Inc. 1 2030 131,701 (9) 6,359,052 1.3 13 Weil, Gotshal & Manges LLP 1 2026 76,278 6,280,735 1.2 14 Bank of America 4 2024-2027 80,899 (10) 5,542,865 1.1 15 Glu Mobile, Inc. 1 2027 61,381 5,473,367 1.1 TOTAL 4,204,119 $ 226,648,422 44.9 % _____________ 1.
Office Tenant Diversification The following table provides information regarding the 15 largest tenants in our office portfolio based on HPP’s share of annualized base rent as of December 31, 2025: Tenant # of Properties Lease Expiration Total Occupied Square Feet HPP’s Share Annualized Base Rent (1) Percent of Annualized Base Rent 1 Google, Inc. 3 2028-2029 458,054 (2) $ 39,743,079 8.9 % 2 Netflix, Inc. 3 9/30/31 722,305 (3) 27,066,646 6.1 3 Amazon 2 2030-2031 850,964 (4) 24,733,556 5.6 4 City and County of San Francisco 2 2033-2067 429,595 (5) 17,769,342 4.0 5 Nutanix, Inc. 2 2030 229,755 (6) 12,653,291 2.8 6 Salesforce.com 1 2027-2028 176,400 (7) 10,746,119 2.4 7 Dell EMC Corporation 2 2026-2027 130,021 (8) 9,299,037 2.1 8 Coupa Software Incorporated 1 11/30/33 100,654 8,077,212 1.8 9 X.AI LLC 1 10/31/31 105,536 6,838,733 1.5 10 PAYPAL INC 1 7/17/26 131,701 (9) 6,549,823 1.5 11 Weil, Gotshal & Manges LLP 1 8/31/26 76,278 6,469,157 1.5 12 Glu Mobile, Inc. 1 11/30/27 61,381 5,637,567 1.3 13 Redfin Corporation 2 2026-2027 115,968 (10) 5,022,579 1.1 14 RIVIAN AUTOMOTIVE, LLC 1 4/30/28 55,805 4,980,956 1.1 15 Covington & Burling LLP 1 8/31/28 40,779 4,483,680 1.0 TOTAL 3,685,196 $ 190,070,777 42.7 % _____________ 1.
The following table provides occupancy and rental rate information relating to the consolidated and unconsolidated in-service studio properties owned as of December 31, 2024: Property Owned/Leased Submarket # of Stages Square Feet Stage % Leased Total % Leased (1) Annual Base Rent (2) HPP’s Share Annualized Base Rent Annualized Base Rent Per Square Foot (3) Los Angeles, California Sunset Gower Studios (4) Owned Hollywood 12 559,141 100.0 % 82.1 % $ 23,466,080 $ 11,967,701 $ 51.17 Sunset Bronson Studios Owned Hollywood 9 310,563 100.0 94.8 13,112,553 6,687,402 44.58 Sunset Las Palmas Studios (5) Owned Hollywood 11 341,464 31.3 42.2 6,160,055 3,141,628 41.43 Sunset Glenoaks Studios (6) Owned Sun Valley 7 241,000 N/A N/A N/A N/A N/A Total in-service studio (7) 39 1,452,168 76.8 % 73.8 % $ 42,738,688 $ 21,796,731 $ 47.41 _____________ 1.
The following table provides occupancy and rental rate information relating to the consolidated and unconsolidated in-service studio properties owned as of December 31, 2025: Property Owned/Leased Submarket # of Stages Square Feet Stage % Leased Total % Leased (1) Annual Base Rent (2) HPP’s Share Annualized Base Rent Annualized Base Rent Per Square Foot (3) Los Angeles, California Sunset Gower Studios (4) Owned Hollywood 12 559,149 100.0 % 81.6 % $ 24,456,909 $ 12,473,024 $ 53.57 Sunset Bronson Studios Owned Hollywood 9 310,563 90.8 89.6 12,760,515 6,507,862 45.84 Sunset Las Palmas Studios (5) Owned Hollywood 11 334,954 65.3 63.9 7,305,566 3,725,839 34.66 Sunset Glenoaks Studios (6) Owned Sun Valley 7 243,300 12.2 9.3 898,989 449,495 37.62 Total in-service studio (7) 39 1,447,966 69.1 % 67.1 % $ 45,421,979 $ 23,156,220 $ 46.76 _____________ 1.
Dell EMC Corporation expirations: (i) 83,549 square feet at 875 Howard in June 2026 and (ii) 46,472 square feet at 505 First in January 2027. 8. GitHub Inc. expirations: (i) 35,330 square feet at 625 Second in December 2024 and (ii) 57,120 square feet at 275 Brannan in June 2030. 9.
Dell EMC Corporation expirations: (i) 83,549 square feet at 875 Howard on June 30, 2026 and (ii) 46,472 square feet at 505 First on January 31, 2027. 9. PayPal, Inc. has exercised their early termination right at Fourth & Traction for July 2026. 10.
Removed
We own 55% of the ownership interest in the consolidated joint ventures that own Ferry Building, 1918 Eighth and Hill7. 8. We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre.
Added
Nutanix expirations: (i) 215,857 square feet at 1740 Technology on May 31, 2030 and (ii) 13,898 square feet at Metro Plaza on July 31, 2030. 7. Salesforce.com expirations at Rincon Center: (i) 83,372 square feet on April 30, 2027 and (ii) 93,028 square feet on October 31, 2028.
Removed
Salesforce.com expirations: (i) 83,016 square feet in March 2025, (ii) 83,372 square feet in April 2027 and (iii) 99,006 square feet in October 2028.
Added
Redfin Corporation expirations: (i) 2,978 square feet at Gateway on September 30, 2026 and (ii) 112,990 square feet at Hill7 on July 31, 2027. 32 Office Industry Diversification The following table summarizes information relating to the industry diversification within our office portfolio based on HPP’s share of annualized base rent as of December 31, 2025: HPP’s Share Industry (1) Square Feet (2) Annualized Base Rent as Percent of Total Square Feet (2) Annualized Base Rent as Percent of Total Technology 2,832,755 32.0 % 2,674,034 36.4 % Legal 582,718 8.7 549,587 10.2 Media-Entertainment 1,110,185 13.3 597,478 8.9 Retail 1,284,803 9.9 921,457 8.3 Financial Services 802,214 8.6 533,557 7.8 Business Services 797,957 7.4 566,803 6.9 Other 693,327 6.3 502,483 6.3 Government 601,860 4.7 574,156 5.5 Real Estate 394,577 3.3 284,335 3.3 Health Care 252,264 2.7 248,138 3.2 Education 111,263 1.2 106,240 1.4 Insurance 174,014 1.4 109,381 1.2 Advertising 35,790 0.5 35,790 0.6 Total 9,673,727 100.0 % 7,703,439 100.0 % _____________ 1.
Removed
PayPal, Inc. has an early termination right at Fourth & Traction in July 2026. 10.
Added
Office Lease Distribution The following table sets forth information relating to the distribution of leases in our office portfolio, based on net rentable square feet under lease as of December 31, 2025: HPP’s Share Square Feet Under Lease Number of Leases Total Leased Square Feet Annualized Base Rent (1) Number of Leases Total Leased Square Feet Annualized Base Rent (1) 10,000 or Less 633 2,253,301 $ 112,611,825 660 1,980,485 $ 103,683,735 10,001-25,000 93 1,428,977 74,174,488 80 1,239,730 72,794,395 25,001-50,000 38 1,345,733 85,482,170 33 1,128,016 73,809,916 50,001-100,000 21 1,449,535 82,053,582 14 1,007,867 55,467,995 Greater than 100,000 14 3,196,181 181,238,014 12 2,347,339 139,437,155 Building Management Use 63 382,526 — 63 330,062 — Signed Leases Not Commenced 22 94,920 2,929,971 22 85,149 2,724,593 Total 884 10,151,173 $ 538,490,050 884 8,118,648 $ 447,917,789 _____________ 1.
Removed
Bank of America expirations: (i) 68,991 square feet at 1455 Market in December 2024, (ii) 5,598 square feet at Palo Alto Square in March 2026, (iii) 122 square feet at Ferry Building in September 2026 and (iv) 6,188 square feet at Bentall Centre in January 2027. 32 Office Industry Diversification The following table summarizes information relating to the industry diversification within our office portfolio based on HPP’s share of annualized base rent as of December 31, 2024: HPP’s Share Industry (1) Square Feet (2) Annualized Base Rent as Percent of Total Square Feet (2) Annualized Base Rent as Percent of Total Technology 3,300,125 33.9 % 3,086,454 38.2 % Media-Entertainment 1,502,941 16.9 968,616 13.1 Legal 584,387 7.7 551,256 9.0 Financial Services 967,828 8.6 663,465 7.9 Retail 1,252,376 8.5 885,697 7.2 Business Services 844,048 7.2 612,261 6.7 Other 702,978 5.8 556,232 6.1 Government 425,605 2.7 412,431 3.1 Real estate 438,904 3.3 270,278 2.8 Health Care 205,108 2.1 197,432 2.4 Insurance 211,835 1.7 157,202 1.7 Education 99,744 1.1 94,721 1.3 Advertising 39,490 0.5 39,490 0.5 Total 10,575,369 100.0 % 8,495,535 100.0 % _____________ 1.
Added
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 Annualized Base Rent Per Lease Square Foot at Expiration (3) Vacant 3,788,193 3,688,559 31.3 % Q1-2026 33 329,500 244,118 2.1 $ 10,191,205 2.3 % $ 41.75 $ 10,193,438 $ 41.76 Q2-2026 36 174,219 139,669 1.2 8,494,493 1.9 60.82 7,884,426 56.45 Q3-2026 41 445,356 414,636 3.5 26,324,315 5.8 63.49 26,409,406 63.69 Q4-2026 20 67,622 63,623 0.5 3,413,814 0.8 53.66 3,439,295 54.06 Total 2026 130 1,016,697 862,046 7.3 48,423,827 10.8 56.17 47,926,565 55.60 2027 157 1,228,212 1,139,269 9.7 68,006,244 15.2 59.69 70,311,263 61.72 2028 139 1,518,086 1,334,769 11.3 92,965,880 20.9 69.65 98,102,165 73.50 2029 98 763,519 575,997 4.8 37,618,005 8.4 65.31 41,218,323 71.56 2030 79 1,553,814 1,152,515 9.8 60,162,651 13.4 52.20 67,801,701 58.83 2031 63 1,493,802 1,049,471 8.9 63,618,151 14.2 60.62 74,739,820 71.22 2032 15 156,722 116,726 1.0 6,773,028 1.5 58.02 7,794,946 66.78 2033 26 648,858 525,309 4.5 27,870,727 6.2 53.06 34,362,838 65.41 2034 15 183,919 180,725 1.5 6,702,757 1.5 37.09 11,390,702 63.03 2035 20 400,273 195,939 1.7 8,981,262 2.0 45.84 11,220,690 57.27 Thereafter 22 685,326 558,611 4.7 23,929,816 5.3 42.84 38,874,665 69.59 Building management use (4) 63 382,526 330,062 2.8 — — — — — Signed leases not commenced 22 94,920 85,149 0.7 2,724,593 0.6 32.00 3,201,263 37.60 Portfolio Total/Weighted Average 849 13,914,867 11,795,147 100.0 % $ 447,776,941 100.0 % $ 55.24 $ 506,944,941 $ 62.53 _____________ 1.
Removed
Office Lease Distribution The following table sets forth information relating to the distribution of leases in our office portfolio, based on net rentable square feet under lease as of December 31, 2024: HPP’s Share Square Feet Under Lease Number of Leases Total Leased Square Feet Annualized Base Rent (1) Number of Leases Total Leased Square Feet Annualized Base Rent (1) 10,000 or Less 634 2,290,236 $ 118,003,529 664 2,038,529 $ 110,240,327 10,001-25,000 89 1,380,502 70,927,188 73 1,150,388 69,565,448 25,001-50,000 44 1,569,921 94,033,088 39 1,352,808 83,933,181 50,001-100,000 26 1,754,523 105,462,435 21 1,447,677 87,376,858 Greater than 100,000 16 3,580,187 210,423,220 12 2,506,133 153,772,160 Building Management Use 59 290,214 — 59 262,230 — Signed Leases Not Commenced 21 84,153 3,441,685 21 71,349 3,126,853 Total 889 10,949,736 $ 602,291,145 889 8,829,114 $ 508,014,827 _____________ 1.
Removed
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 Annualized Base Rent Per Lease Square Foot at Expiration (3) Vacant 3,680,019 3,548,244 28.7 % Q4-2024 27 397,468 343,642 2.8 14,482,100 2.9 42.14 14,482,097 42.14 Total 2024 27 397,468 343,642 2.8 14,482,100 2.9 42.14 14,482,097 42.14 2025 169 1,759,377 1,516,950 12.2 89,366,696 17.5 58.91 89,721,921 59.15 2026 134 808,117 751,826 6.1 46,531,275 9.2 61.89 48,067,093 63.93 2027 144 1,215,055 1,058,593 8.6 65,010,492 12.8 61.41 69,384,772 65.54 2028 89 1,284,325 1,094,915 8.9 77,429,902 15.2 70.72 84,328,100 77.02 2029 76 689,863 543,344 4.4 35,354,571 7.0 65.07 39,692,288 73.05 2030 47 1,771,251 1,413,108 11.4 79,227,916 15.6 56.07 88,813,407 62.85 2031 27 1,150,121 714,662 5.8 44,447,635 8.8 62.19 54,512,519 76.28 2032 12 255,910 153,974 1.2 9,157,909 1.8 59.48 11,247,083 73.05 2033 18 558,618 450,353 3.6 24,086,655 4.7 53.48 30,014,450 66.65 Thereafter 37 665,683 444,872 3.6 19,609,461 3.9 44.08 28,315,644 63.65 Building management use (4) 59 290,214 262,230 2.1 — — — — — Signed leases not commenced 21 84,153 71,349 .6 3,126,853 .6 43.82 3,663,336 51.34 Portfolio Total/Weighted Average 860 14,610,174 12,368,062 100.0 % $ 507,831,465 100.0 % $ 57.58 $ 562,242,710 $ 63.75 _____________ 1.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

13 edited+8 added−8 removed7 unchanged
Recent Sales of Unregistered Securities During the fourth quarter of 2024, our operating partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below.
Recent Sales of Unregistered Securities During the fourth quarter of 2025, our operating partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below.
For all issuances of units to the Company, our operating partnership relied on the Company’s status as a publicly traded NYSE-listed company with approximately $8.1 billion in total consolidated assets and as our operating partnership’s majority owner and sole general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.
For all issuances of units to the Company, our operating partnership relied on the Company’s status as a publicly traded NYSE-listed company with approximately $7.3 billion in total consolidated assets and as our operating partnership’s majority owner and sole general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.
ITEM 5. Market for Hudson Pacific Properties, Inc. Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Overview As of February 19, 2025, Hudson Pacific Properties, Inc. had 78 stockholders of record of our common stock. Hudson Pacific Properties, Inc. common stock has traded on the NYSE under the symbol “HPP” since June 24, 2010.
ITEM 5. Market for Hudson Pacific Properties, Inc. Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Overview As of February 18, 2026, Hudson Pacific Properties, Inc. had 75 stockholders of record of our common stock. Hudson Pacific Properties, Inc. common stock has traded on the NYSE under the symbol “HPP” since June 24, 2010.
Common Capital, Related Unitholder Matters and Issuer Purchases of Units Overview There is no established public trading market for our operating partnership’s common units. As of February 19, 2025, there were 21 holders of record of common units (including through our general partnership interest).
Common Capital, Related Unitholder Matters and Issuer Purchases of Units Overview There is no established public trading market for our operating partnership’s common units. As of February 18, 2026, there were 20 holders of record of common units (including through our general partnership interest).
For each share of common stock issued by the Company in connection with such an award, our operating partnership issued a restricted common unit to the Company as provided in the partnership agreement of our operating partnership. During the fourth quarter of 2024, our operating partnership issued 46,741 common units to the Company.
For each share of common stock issued by the Company in connection with such an award, our operating partnership issued a restricted common unit to the Company as provided in the partnership agreement of our operating partnership. During the fourth quarter of 2025, our operating partnership issued 9,762 common units to the Company.
Distributions We intend to make distributions each taxable year, and intend to make regular quarterly distributions to our unitholders. Historically, we have made distributions to our unitholders quarterly in March, June, September and December. Distributions are made to those unitholders who are unitholders as of the distribution record date.
Historically, we have made distributions to our unitholders quarterly in March, June, September and December. Distributions are made to those unitholders who are unitholders as of the distribution record date.
Stock Performance Graph The information below shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, other than as provided in Item 201 of Regulation S-K, or to the liabilities of Section 18 of the Exchange Act, except to the extent we specifically request that such information be treated as soliciting material or specifically incorporate it by reference into a filing under the Securities Act or the Exchange Act.
Stock Performance Graph The information below shall not be deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C, other than as provided in Item 201 of Regulation S-K, or to the liabilities of Section 18 of the Exchange Act, except to the extent we specifically request that such information be treated as soliciting material or specifically incorporate it by reference into a filing under the Securities Act or the Exchange Act. 38 The following graph shows our cumulative total stockholder return for the five-year period ending on December 31, 2025.
The operating partnership suspended its quarterly distribution during the third and fourth quarters of 2023 and the third and fourth quarters of 2024. We will reassess the resumption of the dividend program when appropriate.
The operating partnership suspended its quarterly distributions during the third quarter of 2024 and as not yet resumed the distributions. We will reassess the resumption of the dividend program when appropriate.
During the fourth quarter of 2024, the Company issued an aggregate of 71,273 shares of its common stock in connection with restricted stock units for no cash consideration, out of which 24,532 shares of common stock were forfeited to the Company in connection with tax withholding obligations for a net issuance of 46,741 shares of common stock.
During the fourth quarter of 2025, the Company issued an aggregate of 9,762 shares of its common stock in connection with the vesting of restricted stock awards for no cash consideration, out of which no shares of common stock were forfeited to the Company in connection with tax withholding obligations.
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. The operating partnership also issued 118,519 long-term incentive plan units during the fourth quarter of 2024.
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.
The Company suspended its quarterly common stock dividend during the third and fourth quarters of 2023 and the third and fourth quarters of 2024. Our Board will reassess the resumption of the dividend program when appropriate.
The Company suspended its quarterly common stock dividend during the third quarter of 2024 and has not yet resumed the dividend program. Our Board will reassess the resumption of the dividend program when appropriate. Issuer Purchases of Equity Securities None.
The graph also shows the cumulative total returns of the Standard & Poor’s 500 Stock Index (“S&P 500”), and industry peer groups.
The graph assumes a $100 investment in each of the indices on December 31, 2020 and the reinvestment of all dividends. The graph also shows the cumulative total returns of the Standard & Poor’s 500 Stock Index (“S&P 500”), and industry peer groups. Our stock price performance shown in the following graph is not indicative of future stock price performance.
Long-term incentive plan units may also, under certain circumstances, be convertible into common units on a one-for-one basis, which are then exchangeable for shares of the Company’s common stock as described above. All other issuances of unregistered equity securities of our operating partnership during the year ended December 31, 2024 have previously been disclosed in filings with the SEC.
All other issuances of unregistered equity securities of our operating partnership during the year ended December 31, 2025 have previously been disclosed in filings with the SEC.
Removed
Issuer Purchases of Equity Securities During the fourth quarter of 2024, certain employees surrendered common shares owned by them to satisfy their statutory federal income tax obligation associated with the vesting of restricted common shares of beneficial interest issued under our 2010 Incentive Award Plan.
Added
Reverse Stock Split On December 1, 2025, the Company effected a one-for-seven reverse stock split of its common stock (the "Reverse Stock Split").
Removed
The following table summarizes all of the repurchases of Hudson Pacific Properties, Inc. equity securities during the fourth quarter of 2024: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2) December 1 - December 31, 2024 24,532 (3) $ 2.97 (4) — 35,250,164 _____________ 1.
Added
Immediately following the Reverse Stock Split, the par value of the Company’s common stock was decreased from $0.07 per share back to $0.01 per share and the number of authorized shares was decreased from 740,800,000 shares of stock (consisting of 722,400,000 shares of common stock and 18,400,000 shares of preferred stock) to 121,600,000 shares of stock (consisting of 103,200,000 shares of common stock and 18,400,000 shares of preferred stock).
Removed
Our board of directors authorized a share repurchase program to buy up to $250.0 million of the outstanding common stock of Hudson Pacific Properties, Inc. The program does not have a termination date, and repurchases may commence or be discontinued at any time.
Added
The Company’s common stock began trading on the NYSE on a split-adjusted basis at market open on December 2, 2025. All common share and per-share amounts in this Form 10-K have been retroactively restated to reflect the effect of the Reverse Stock Split.
Removed
A cumulative total of $214.7 million had been repurchased under the program as of December 31, 2024. 2. The maximum that may yet be purchased under the plans or programs is shown net of repurchases. 3.
Added
Partnership Agreement Amendment On December 1, 2025, the Company, as general partner of Hudson Pacific Properties, L.P., executed the Sixth Amended and Restated Agreement of Limited Partnership of Hudson Pacific Properties, L.P. to give effect to a one-for-seven reverse unit split (the “Reverse Unit Split”) of the common units, LTIP units and performance units of the operating partnership, which corresponds to the Reverse Stock Split described in Part II, Item 5 “Market for Hudson Pacific Properties, Inc.
Removed
Includes shares of common stock remitted to Hudson Pacific Properties, Inc. to satisfy tax withholding obligations in connection with the vesting of restricted stock units. 4. The price paid per share is based on the closing price of our common stock, as reported by the NYSE, as of the date of vesting of the restricted stock units.
Added
Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.” All common unit, LTIP unit, performance unit and per-unit amounts in this Form 10-K have been retroactively restated to reflect the effect of the Reverse Unit Split. Distributions We intend to make distributions each taxable year, and intend to make regular quarterly distributions to our unitholders.
Removed
The following graph shows our cumulative total stockholder return for the five-year period ending on December 31, 2024. The graph assumes a $100 investment in each of the indices on December 31, 2019 and the reinvestment of all dividends.
Added
During the fourth quarter of 2025, our operating partnership issued an aggregate of 12,651 units to us in connection with the issuance by us of an aggregate of 12,651 shares of our common stock in connection with the exercises of pre-funded warrants.
Removed
Our stock price performance shown in the following graph is not indicative of future stock price performance. 38 Period Ending Index 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Hudson Pacific Properties, Inc. 100.00 66.61 71.13 30.02 30.66 10.16 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 MSCI U.S.
Added
Period Ending Index 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Hudson Pacific Properties, Inc. 100.00 106.88 45.17 46.18 15.31 7.82 S&P 500 100.00 128.71 105.40 133.10 166.40 196.16 MSCI U.S. REIT 100.00 143.06 108.00 122.84 133.59 137.53 Dow Jones Equity All REIT 100.00 141.20 105.89 117.86 123.58 126.55 Dow Jones U.S.
Removed
REIT 100.00 92.43 132.23 99.82 113.54 123.47 Dow Jones Equity All REIT 100.00 95.21 134.44 100.82 112.21 117.66 Dow Jones U.S. Real Estate Office 100.00 83.39 102.50 66.06 65.66 68.44 FTSE NAREIT All Equity REITs 100.00 94.88 134.06 100.62 112.04 117.56 ITEM 6. [Reserved] 39
Added
Real Estate Office 100.00 122.93 79.22 78.74 82.08 64.37 FTSE NAREIT All Equity REITs 100.00 141.30 106.05 118.09 123.90 126.71 ITEM 6. [Reserved] 39

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

88 edited+25 added−17 removed95 unchanged
Impairment loss During the year ended December 31, 2024, we recognized an impairment loss of $149.7 million related to the impairment of goodwill associated with the Quixote reporting unit as well as the impairment of certain office properties.
During the year ended December 31, 2024, we recognized an impairment loss of $149.7 million related to the impairment of goodwill associated with the Quixote reporting unit as well as the impairment of certain office properties.
Income tax provision During the year ended December 31, 2024, we recorded an income tax provision of $1.6 million primarily related to a valuation allowance recorded against certain deferred tax assets and a change in Canadian tax legislation resulting in an increase in current tax expense.
During the year ended December 31, 2024, we recorded an income tax provision of $1.6 million primarily related to a valuation allowance recorded against certain deferred tax assets and a change in Canadian tax legislation resulting in an increase in current tax expense.
Positive or negative changes in economic or other conditions in any of the markets in which we own real estate and/or operate, including state budgetary shortfalls, employment rates, natural hazards and other factors, may impact our overall performance. 42 Operating Expenses Our operating expenses generally consist of utilities, cleaning, engineering, administrative, property, ad valorem taxes and site maintenance costs.
Positive or negative changes in economic or other conditions in any of the markets in which we own real estate and/or operate, including state budgetary shortfalls, employment rates, natural hazards and other factors, may impact our overall performance. Operating Expenses Our operating expenses generally consist of utilities, cleaning, engineering, administrative, property, ad valorem taxes and site maintenance costs.
Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease.
Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and 46 • whether the tenant improvements are expected to have any residual value at the end of the lease.
In addition, growth in rental revenue will also partially depend on our ability to acquire additional properties that meet our investment criteria. Market Conditions We own real estate primarily in California, the Pacific Northwest and Western Canada. We operate our production services business in key US media markets in California, New Mexico, Atlanta and New York.
In addition, growth in rental revenue will also partially depend on our ability to acquire additional properties that meet our investment criteria. Market Conditions We own real estate in California, the Pacific Northwest, New York and Western Canada. We operate our production services business in key US media markets in California, New York, Atlanta and New Mexico.
Costs previously capitalized related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. 44 Operating Properties The properties are generally carried at cost less accumulated depreciation and amortization.
Costs previously capitalized related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. Operating Properties The properties are generally carried at cost less accumulated depreciation and amortization.
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 the undiscounted future cash flows and fair value of an asset group.
Given the level of sensitivity in the inputs, a change in the value of any one input, in isolation or in combination, could affect the overall estimation of the undiscounted future cash flows and fair value of an asset group.
We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, strategic acquisitions, capital expenditures, tenant improvements, leasing costs, dividends and distributions, share repurchases and repayments of outstanding debt financing will include: • cash on hand, cash reserves and net cash provided by operations; • strategic dispositions of real estate; • sales of non-real estate investments; • proceeds from additional equity securities; • our ATM program; • borrowings under the operating partnership’s unsecured revolving credit facility; • proceeds from joint venture partners; • proceeds from the Sunset Glenoaks construction loan, Sunset Pier 94 Studios construction loan (unconsolidated joint venture) and Bentall Centre loan (unconsolidated joint venture); and • proceeds from additional secured, unsecured debt financings or offerings.
We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, strategic acquisitions, capital expenditures, tenant improvements, leasing costs, dividends and distributions, share repurchases and repayments of outstanding debt financing will include: • cash on hand, cash reserves and net cash provided by operations; • strategic dispositions of real estate; • sales of non-real estate investments; • proceeds from additional equity securities; • our ATM program; • borrowings under the operating partnership’s unsecured revolving credit facility; • proceeds from joint venture partners; • proceeds from the Sunset Pier 94 Studios construction loan (unconsolidated joint venture); and • proceeds from additional secured, unsecured debt financings or offerings.
For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of December 31, 2024. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options.
For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of December 31, 2025. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options.
The future cash flows utilized in the evaluation of recoverability and the measurement of fair value are highly subjective and are based on assumptions regarding anticipated hold periods, future occupancy, future rental rates, future capital requirements, discount rates and capitalization rates, which are considered Level 2 and Level 3 inputs within the fair value hierarchy.
The future cash flows utilized in the evaluation of recoverability and the measurement of fair value are subjective and are based on assumptions regarding anticipated hold periods, future occupancy, future rental rates, future capital requirements, discount rates 45 and capitalization rates, which are considered Level 2 and Level 3 inputs within the fair value hierarchy.
ABR per leased square foot calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2024. 4. Includes office properties owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of December 31, 2024. 5.
ABR per leased square foot calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2025. 4. Includes office properties owned and included in our stabilized portfolio as of January 1, 2024 and still owned and included in the stabilized portfolio as of December 31, 2025. 5.
Annualized base rent per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of December 31, 2024 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of December 31, 2024.
Annualized base rent per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of December 31, 2025 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of December 31, 2025.
Where applicable, rental rates converted to USD using the foreign currency exchange rate as of December 31, 2024. Annualized base rent per square foot for studio properties reflects actual base rent for the 12 months ended December 31, 2024, excluding tenant reimbursements.
Where applicable, rental rates converted to USD using the foreign currency exchange rate as of December 31, 2025. Annualized base rent per square foot for studio properties reflects actual base rent for the 12 months ended December 31, 2025, excluding tenant reimbursements.
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 taxable REIT subsidiaries (“TRS”) for federal income tax purposes.
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 taxable REIT subsidiaries (“TRSs”) for federal income tax purposes.
Percent leased for studio properties is calculated as (i) average square footage under commenced leases for the 12 months ended December 31, 2024, divided by (ii) total square feet, expressed as a percentage. 3.
Percent leased for studio properties is calculated as (i) average square footage under commenced leases for the 12 months ended December 31, 2025, divided by (ii) total square feet, expressed as a percentage. 3.
Impairment of Long-Lived Assets In accordance with GAAP, we assess the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable over the life of the asset or its intended holding period.
Impairment of Investment in Real Estate In accordance with GAAP, we assess the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable over the life of the asset or its intended holding period.
Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2024, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.
Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2025, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.
We believe that the average rental rates for our office properties are generally below the current average quoted market rate. We believe the average rental rates for our studio properties are generally equal to current average quoted market rates. Negative trends in one or more of these factors could adversely affect our rental revenue in future periods.
We believe the average rental rates for our studio properties are generally equal to current average quoted market rates. Negative trends in one or more of these factors could adversely affect our rental revenue in future periods.
Unrealized loss on non-real estate investments We recognized an unrealized loss on non-real estate investments of $4.0 million for the year ended December 31, 2024 compared to an unrealized loss on non-real estate investments of $3.1 million for the year ended December 31, 2023.
Unrealized loss on non-real estate investments We recognized an unrealized loss on non-real estate investments of $3.0 million for the year ended December 31, 2025 compared to an unrealized loss on non-real estate investments of $4.0 million for the year ended December 31, 2024.
The loan was transacted in Canadian dollars. Amounts are shown in U.S. dollars using the foreign currency exchange rate as of December 31, 2024. Our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders.
Amounts are shown in U.S. dollars using the foreign currency exchange rate as of December 31, 2025. Our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders.
Please refer to Part IV, Item 15 (a) “Exhibits, Financial Statement Schedules—Note 4 to the Consolidated Financial Statements—Investment in Real Estate” for details. 40 Under Construction and Future Development Projects The following table summarizes the properties currently under construction and future development pipelines as of December 31, 2024: Type Submarket Estimated Square Feet (1) Estimated Completion Date Estimated Stabilization Date Under Construction: New York, New York Sunset Pier 94 Studios (2) Studio Manhattan 232,000 Q4-2025 Q3-2026 TOTAL 232,000 Recently Completed: Seattle, Washington Washington 1000 Office Denny Triangle 546,000 Q4-2024 Q3-2026 TOTAL 546,000 Future Development Pipeline: Los Angeles, California Sunset Las Palmas Studios—Development (3) Studio Hollywood 617,581 TBD TBD Sunset Gower Studios—Development (3) 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 (4) Residential West Los Angeles N/A TBD TBD Vancouver, British Columbia Burrard Exchange (5) Office Downtown Vancouver 450,000 TBD TBD Greater London, United Kingdom Sunset Waltham Cross Studios (6) Studio Broxbourne 1,167,347 TBD TBD TOTAL 3,233,589 TOTAL UNDER CONSTRUCTION AND FUTURE DEVELOPMENT 4,011,589 _____________ 1.
Please refer to Part IV, Item 15 (a) “Exhibits, Financial Statement Schedules—Note 4 to the Consolidated Financial Statements—Investment in Real Estate” for details. 40 Under Construction and Future Development Projects The following table summarizes the properties currently under construction and future development pipelines as of December 31, 2025: Type Submarket Estimated Square Feet (1) Estimated Completion Date Estimated Stabilization Date Recently Completed: Seattle, Washington Washington 1000 Office Denny Triangle 546,000 Q4-2024 Q3-2027 New York, New York Sunset Pier 94 Studios (2) Studio Manhattan 232,000 Q4-2025 Q3-2026 TOTAL 778,000 Future Development Pipeline: Los Angeles, California Sunset Las Palmas Studios—Development (3) Office/Studio Hollywood 617,581 TBD TBD Sunset Gower Studios—Development (3) Office/Studio Hollywood 478,845 TBD TBD Sunset Bronson Studios Lot D—Development (4) Residential Hollywood 19,816 (33 units) TBD TBD 10900/10950 Washington Residential West Los Angeles 428,623 (508 units) TBD TBD Vancouver, British Columbia Burrard Exchange (4) Office Downtown Vancouver 450,000 TBD TBD Greater London, United Kingdom Sunset Waltham Cross Studios (5) Studio Broxbourne 1,167,347 TBD TBD TOTAL 3,162,212 TOTAL UNDER CONSTRUCTION AND FUTURE DEVELOPMENT 3,940,212 _____________ 1.
Outstanding Indebtedness The following table sets forth information as of December 31, 2024 and December 31, 2023 with respect to our outstanding indebtedness, excluding unamortized deferred financing costs and loan discounts (in thousands): December 31, 2024 December 31, 2023 Unsecured debt $ 2,435,000 $ 2,307,000 Secured debt $ 1,752,667 $ 1,653,067 Joint venture partner debt $ 66,136 $ 66,136 The operating partnership was in compliance with its financial covenants as of December 31, 2024.
Outstanding Indebtedness The following table sets forth information as of December 31, 2025 and December 31, 2024 with respect to our outstanding indebtedness, excluding unamortized deferred financing costs and loan discounts (in thousands): December 31, 2025 December 31, 2024 Unsecured debt $ 1,650,000 $ 2,435,000 Secured debt $ 1,717,850 $ 1,752,667 Joint venture partner debt $ 66,136 $ 66,136 The operating partnership was in compliance with its financial covenants as of December 31, 2025.
We periodically evaluate our 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 December 31, 2024, we have not established a liability for uncertain tax positions.
We periodically evaluate our 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.
(our operating partnership) and its subsidiaries, at December 31, 2024, our portfolio of owned real estate included office properties comprising approximately 14.6 million square feet, studio properties comprising approximately 45 sound stages and 1.7 million square feet and land properties comprising approximately 3.2 million square feet of undeveloped density rights.
(our operating partnership) and its subsidiaries, at December 31, 2025, our portfolio of owned real estate included office properties comprising approximately 13.9 million square feet, studio properties comprising approximately 45 sound stages and 1.7 million square feet and land properties comprising approximately 3.2 million square feet of undeveloped density rights.
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. Gross interest expense decreased by $14.8 million, or 6.6%, to $210.0 million for the year ended December 31, 2024 compared to $224.8 million for the year ended December 31, 2023.
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. Gross interest expense decreased by $12.8 million, or 6.1%, to $197.3 million for the year ended December 31, 2025 compared to $210.0 million for the year ended December 31, 2024.
No gain or loss on sale of bonds was recognized during the year ended December 31, 2024. Loss (gain) on sale of real estate During the year ended December 31, 2024, we recognized a $2.5 million loss on sale of real estate attributable to the sale of our 3176 Porter property.
During the year ended December 31, 2024, we recognized a $2.5 million loss on sale of real estate attributable to the sale of our 3176 Porter property.
Includes studio properties owned and included in our portfolio as of January 1, 2023 and still owned and included in our portfolio as of December 31, 2024. 8. Refer to Repositioning table in this document for the office and studio projects under repositioning as of December 31, 2024. 9.
Includes studio properties owned and included in our portfolio as of January 1, 2024 and still owned and included in our portfolio as of December 31, 2025. 6. Refer to Repositioning table in this document for the office and studio projects under repositioning as of December 31, 2025. 7.
Our production services assets include vehicles, lighting and grip, production supplies and other equipment and the lease rights t o 24 sound stages. As of December 31, 2024, our in-service office portfolio was 78.9% leased (including leases not yet commenced). Our same-store studio properties average percent leased for the twelve months ended December 31, 2024 was 73.8%.
Our production services assets include vehicles, lighting and grip, production supplies and other equipment and the lease rights t o 20 sound stages. As of December 31, 2025, our in-service office portfolio was 77.0% leased (including leases not yet commenced). Our in-service studio properties average percent leased for the twelve months ended December 31, 2025 was 78.8%.
Liquidity Sources We had approximately $63.3 million of cash and cash equivalents at December 31, 2024. Our principal source of operating cash flow is related to leasing and operating the properties in our portfolio.
Liquidity Sources We had approximately $138.4 million of cash and cash equivalents at December 31, 2025. Our principal source of operating cash flow is related to leasing and operating the properties in our portfolio.
Excludes joint venture partner debt and unamortized deferred financing costs and loan discount. 2.
Excludes joint venture partner debt and unamortized deferred financing costs and loan discounts/premiums. 2.
Equity capitalization represents the shares of common stock outstanding (including unvested restricted shares), OP and LTIP units outstanding, restricted performance units and dilutive shares multiplied by the closing price of $3.03, as reported by the NYSE, on December 31, 2024 as well as the aggregate value of the Series C preferred stock liquidation preference as of December 31, 2024.
Equity capitalization represents the shares of common stock outstanding (including unvested restricted shares), pre-funded warrants, OP and LTIP units outstanding, restricted performance units and dilutive shares multiplied by the closing price of $10.83, as reported by the NYSE, on December 31, 2025 as well as the aggregate value of the Series C preferred stock liquidation preference as of December 31, 2025.
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 45 transactions where applicable, and risk-adjusted discount rates to present value future cash flows.
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, which are typically considered Level 3 inputs within the fair value hierarchy.
The Company has entered into a number of construction agreements related to capital improvement activities at various properties. As of December 31, 2024, the Company had $98.6 million in outstanding obligations under the agreements, of which $94.5 million is expected to be incurred within one year from December 31, 2024.
The Company has entered into a number of construction agreements related to capital improvement activities at various properties. As of December 31, 2025, the Company had $96.7 million in outstanding obligations under the agreements, of which $92.0 million is expected to be incurred within one year from December 31, 2025.
The Company invests in several non-real estate funds with an aggregate commitment to contribute up $51.0 million. As of December 31, 2024, the Company has contributed $41.1 million, net of recallable distributions, with $9.9 million remaining to be contributed.
The Company invests in several non-real estate funds with an aggregate commitment to contribute up $51.0 million. As of December 31, 2025, the Company has contributed $42.3 million, net of recallable distributions, with $8.7 million remaining to be contributed.
The dollar amounts included in the tables in this discussion of our results of operations are presented in thousands. 48 Comparison of the year ended December 31, 2024 to the year ended December 31, 2023 Net Loss Net loss increased $210.7 million, or 123%, to $381.4 million for the year ended December 31, 2024 compared to $170.7 million for the year ended December 31, 2023.
The dollar amounts included in the tables in this discussion of our results of operations are presented in thousands. 49 Comparison of the year ended December 31, 2025 to the year ended December 31, 2024 Net Loss Net loss increased $210.9 million, or 55.3%, to $592.3 million for the year ended December 31, 2025 compared to $381.4 million for the year ended December 31, 2024.
Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. 43 Acquisitions that do not meet the definition of a business When we acquire properties that are considered asset acquisitions, the purchase price, which includes transaction-related expenses, is allocated based on relative fair value of the assets acquired and liabilities assumed.
Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay.
We own 51% of the ownership interests in the consolidated joint venture that owns Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. 4. Pending entitlement to develop approximately 500 residential units. 5. We own 20% of the ownership interests in the unconsolidated joint venture that owns Burrard Exchange. 6.
We own 51% of the ownership interests in the consolidated joint venture that owns Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. 4. We own 20% of the ownership interests in the unconsolidated joint venture that owns Burrard Exchange. 5.
Factors That May Influence Our Operating Results Business and Strategy We invest in Class-A office properties in West Coast technology hubs and world-class studio properties and studio-related operating businesses in global media markets.
The gross proceeds from the offering amounted to $689.3 million. Factors That May Influence Our Operating Results Business and Strategy We invest in Class-A office properties in West Coast technology hubs and world-class studio properties and studio-related operating businesses in global media markets.
Includes 546,000 square feet related to the office development Washington 1000 and 232,000 square feet related to Sunset Pier 94 Studios. 10. Includes pending entitlement to develop approximately 500 residential units at 10900-10950 Washington.
Includes 546,000 square feet related to the office development Washington 1000 and 232,000 square feet related to Sunset Pier 94 Studios. 8. Includes entitlement to develop up to 428,623 square feet (508 residential units) at 10900-10950 Washington.
Subsequently, when the square footage offline for a full building reaches 92.0% occupancy, it would be included in our in-service population. 41 The following table summarizes the portions of office and studio projects currently under repositioning as of December 31, 2024: Location Submarket Square Feet Repositioning: 899 Howard San Francisco 96,240 Page Mill Center Palo Alto 79,056 Rincon Center San Francisco 36,905 Sunset Las Palmas Studios Hollywood 18,594 Palo Alto Square Palo Alto 12,740 Metro Plaza North San Jose 10,382 Sunset Gower Studios Hollywood 6,650 TOTAL REPOSITIONING 260,567 Financings During the year ended December 31, 2024, there were $128.0 million of borrowings on the unsecured revolving credit facility, net of repayments.
Subsequently, when the square footage offline for a full building reaches 92.0% occupancy, it would be included in our in-service population. 41 The following table summarizes the portions of office and studio projects currently under repositioning as of December 31, 2025: Location Submarket Square Feet Repositioning: 899 Howard San Francisco 96,240 1455 Market San Francisco 49,272 Rincon Center San Francisco 38,514 Sunset Las Palmas Studios Hollywood 18,594 Bentall Centre Downtown Vancouver 18,559 Palo Alto Square Palo Alto 12,740 Sunset Gower Studios Hollywood 6,650 TOTAL REPOSITIONING 240,569 Financings During the year ended December 31, 2025, there were $320.0 million of repayments on the unsecured revolving credit facility, net of borrowings.
To qualify as a REIT, we are required to distribute at least 90% of our REIT taxable income, excluding net capital gains, to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. 46 Provided that we continue to qualify for taxation as a REIT, we are generally not subject to corporate level income tax on the earnings distributed currently to our stockholders.
To qualify as a REIT, we are required to distribute at least 90% of our REIT taxable income, excluding net capital gains, to our stockholders and meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership.
Investing Activities Net cash used in investing activities increased by $718.4 million, or 153.6%, to $250.5 million for the year ended December 31, 2024 as compared to $467.8 million of cash provided by investing activities for the year ended December 31, 2023.
Investing Activities Net cash provided by investing activities increased by $293.4 million, or 117.1%, to $42.8 million for the year ended December 31, 2025 as compared to $250.5 million of cash used in investing activities for the year ended December 31, 2024.
Amounts are shown in U.S. dollars using the foreign currency exchange rate as of December 31, 2024. This loan is interest-only through its term. (2) This loan has an initial interest rate of SOFR + 4.75% per annum until stabilization of the project, at which time the effective interest rate will decrease to SOFR + 4.00%.
Amounts are shown in U.S. dollars using the foreign currency exchange rate as of December 31, 2025. This loan is interest-only through its term. (2) This loan has an initial interest rate of SOFR + 3.10% per annum until certain performance targets have been met, at which time the effective interest rate will decrease to SOFR + 2.50%.
Refer to Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 10 to the Consolidated Financial Statements—Debt” for details. 2. Interest rates with respect to indebtedness are calculated on the basis of a 360-day year for the actual days elapsed. 56 3.
Refer to Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 10 to the Consolidated Financial Statements—Debt” for details. 2. Interest rates with respect to indebtedness are calculated on the basis of a 360-day year for the actual days elapsed. 3. Reflects our projected interest obligations for fixed rate debts, including those that are effectively fixed as a result of derivatives.
Fee income Fee income decreased by $0.9 million, or 14.8%, to $5.3 million for the year ended December 31, 2024 compared to $6.2 million for the year ended December 31, 2023. Fee income represents the management fee income earned from the unconsolidated real estate entities.
Fee income Fee income increased by $0.1 million, or 2.5%, to $5.4 million for the year ended December 31, 2025 compared to $5.3 million for the year ended December 31, 2024. Fee income represents the management fee income earned from our unconsolidated real estate entities.
The following table provides information about joint venture indebtedness as of December 31, 2024 (in thousands): Ownership Interest Amount Drawn Undrawn Capacity Total Capacity Interest Rate Contractual Maturity Date Bentall Centre (1) 20 % $ 450,551 $ 9,355 $ 459,906 CORRA + 2.30% 7/1/2027 Sunset Pier 94 Studios (2) 26 % 29,783 153,417 183,200 SOFR + 4.75% 9/9/2028 _____________ (1) The loan was transacted in Canadian dollars.
The following table provides information about joint venture indebtedness as of December 31, 2025 (in thousands): Ownership Interest Amount Drawn Undrawn Capacity Total Capacity Interest Rate Contractual Maturity Date Bentall Centre (1) 20 % $ 482,622 $ — $ 482,622 CORRA + 2.30% 7/1/2027 Sunset Glenoaks Studios (2)(3) 50 % 102,430 — 102,430 SOFR + 3.10% 1/9/2027 Sunset Pier 94 Studios (4) 26 % 143,870 39,330 183,200 SOFR + 4.75% 9/9/2028 _____________ (1) The loan was transacted in Canadian dollars.
General and administrative expenses General and administrative expenses increased by $4.5 million, or 6.0%, to $79.5 million for the year ended December 31, 2024 compared to $75.0 million for the year ended December 31, 2023.
General and administrative expenses General and administrative expenses decreased by $6.5 million, or 8.2%, to $73.0 million for the year ended December 31, 2025 compared to $79.5 million for the year ended December 31, 2024.
Reflects our projected interest obligations for variable rate debts, including instances where interest is paid based on an applicable SOFR margin. We used the average December SOFR and the applicable margin as of December 31, 2024. 5.
Also includes $20.2 million of projected interest related to our joint venture partner debt. 57 4. Reflects our projected interest obligations for variable rate debts, including instances where interest is paid based on an applicable SOFR margin. We used the average December SOFR and the applicable margin as of December 31, 2025. 5.
Financing Activities Net cash provided by financing activities increased by $932.6 million, or 107.6%, to $65.9 million for the year ended December 31, 2024 as compared to $866.7 million of cash used in financing activities for the year ended December 31, 2023.
Financing Activities Net cash used in financing activities increased by $166.8 million, or 253.1%, to $100.9 million for the year ended December 31, 2025 as compared to $65.9 million of cash provided by financing activities for the year ended December 31, 2024.
If we incur additional debt, the risks associated with our leverage, including our ability to service our debt, would increase. 55 The following table sets forth our ratio of debt to total market capitalization (counting series A preferred units as debt) as of December 31, 2024 (in thousands, except percentage): Market Capitalization December 31, 2024 Unsecured and secured debt (1) $ 4,187,667 Series A redeemable preferred units 9,815 Total consolidated debt 4,197,482 Equity capitalization (2) 881,851 TOTAL CONSOLIDATED MARKET CAPITALIZATION $ 5,079,333 Total consolidated debt/total consolidated market capitalization 82.6 % _____________ 1.
If we incur additional debt, the risks associated with our leverage, including our ability to service our debt, would increase. 56 The following table sets forth our ratio of debt to total market capitalization (counting series A preferred units as debt) as of December 31, 2025 (in thousands, except percentage): Market Capitalization December 31, 2025 Unsecured and secured debt (1) $ 3,367,850 Series A redeemable preferred units 2,795 Total consolidated debt 3,370,645 Equity capitalization (2) 1,141,187 TOTAL CONSOLIDATED MARKET CAPITALIZATION $ 4,511,832 Total consolidated debt/total consolidated market capitalization 74.7 % _____________ 1.
As of December 31, 2024, the percent leased for our in-service office properties was approximatel y 78.9% (or 78.3% , excluding leases signed but not commenced as of that date).
As of December 31, 2025, the percent leased for our in-service office properties was approximatel y 77.0% (or 76.3% , excluding leases signed but not commenced as of that date). As of December 31, 2025, the percent leased, based on a 12-month trailing average, was approximat ely 78.8% for in- service studio properties.
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.
Under this model, the purchase price is allocated based on the relative fair value of the assets acquired and liabilities assumed.
Depreciation and amortization expense Depreciation and amortization expense decreased by $43.4 million, or 10.9%, to $354.4 million for the year ended December 31, 2024 compared to $397.8 million for the year ended December 31, 2023.
Depreciation and amortization expense Depreciation and amortization expense increased by $20.5 million, or 5.8%, to $375.0 million for the year ended December 31, 2025 compared to $354.4 million for the year ended December 31, 2024.
Acquisitions that meet the definition of a business For acquisitions that meet the definition of a business, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date.
Additionally, acquisition-related expenses associated with an asset acquisition are capitalized as part of the purchase price. 44 Acquisitions that meet the definition of a business For acquisitions that meet the definition of a business, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date.
The change primarily resulted from a $821.6 million decrease in proceeds from the sales of real estate, partially offset by a $99.4 million decrease in additions to investment property during the year ended December 31, 2024 as compared to the year ended December 31, 2023.
The change primarily resulted from a $214.9 million increase in proceeds from sales of real estate, a $55.3 million decrease in additions 58 to investment property and a $29.4 million decrease in contributions to unconsolidated entities during the year ended December 31, 2025 as compared to the year ended December 31, 2024.
In January 2025, the Company amended its credit facility agreement to adjust certain definitions and covenant calculations beginning with the period ending December 31, 2024. The amendment also resulted in a decrease in the total capacity from $900.0 million to $775.0 million. 2. Amounts are presented at HPP’s share. 3. This loan is held by an unconsolidated joint venture. 4.
During the twelve months ended December 31, 2025, the Company amended its unsecured revolving credit facility agreement to adjust certain definitions and covenant calculations beginning with the period ending December 31, 2024. The amendment also resulted in a decrease in the total capacity from $900.0 million to $775.0 million.
Rental Revenue The amount of net rental revenue generated by the properties in our portfolio depends principally on our ability to maintain the occupancy rates of leased space and to lease available space .
Changes in demand for office and/or studio space, capital markets, and other macro-economic factors may impact our business and overall performance. 42 Rental Revenue The amount of net rental revenue generated by the properties in our portfolio depends principally on our ability to maintain the occupancy rates of leased space and to lease available space .
Our ability to access the equity capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about us. We have an ATM program that allows us to sell up to $125.0 million of common stock, $65.8 million of which has been sold through December 31, 2024.
We have an ATM program that allows us to sell up to $125.0 million of common stock, $65.8 million of which has been sold through December 31, 2025. Any future sales will depend on several factors, including, but not limited to, market conditions, the trading price of our common stock and our capital needs.
The following table sets forth our borrowing capacity under various loans as of December 31, 2024 (in thousands): Loan Total Borrowing Capacity Amount Drawn Remaining Borrowing Capacity Unsecured revolving credit facility (1) $ 775,000 $ 320,000 $ 455,000 Sunset Glenoaks construction loan (2) $ 50,300 $ 49,800 $ 500 Bentall Centre (2)(3)(4) $ 91,981 $ 90,110 $ 1,871 Sunset Pier 94 Studios construction loan (2)(3) $ 46,810 $ 7,610 $ 39,200 _____________ 1.
The following table sets forth our borrowing capacity under various loans as of December 31, 2025 (in thousands): Loan Total Borrowing Capacity Amount Drawn Remaining Borrowing Capacity Unsecured revolving credit facility $ 795,250 $ — $ 795,250 Sunset Glenoaks Studios construction loan (1)(2)(3) 51,215 51,215 — Bentall Centre (1)(2)(4) 96,524 96,524 — Sunset Pier 94 Studios construction loan (1)(2) 46,810 36,760 10,050 TOTAL $ 989,799 $ 184,499 $ 805,300 _____________ 1.
Non-GAAP Supplemental Financial Measures We calculate FFO in accordance with the White Paper issued in December 2018 on FFO approved by the Board of Governors of NAREIT.
The increase was further offset by $41.0 million spent on the purchase of our partner’s interest in our 1455 Market property during the year ended December 31, 2024. Non-GAAP Supplemental Financial Measures We calculate FFO in accordance with the White Paper issued in December 2018 on FFO approved by the Board of Governors of NAREIT.
Critical Accounting Policies and 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 as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Because a taxable REIT subsidiary is subject to federal income tax, and state and local income tax (where applicable), as a regular C corporation, the income earned by our taxable REIT subsidiaries generally will be subject to an additional level of tax as compared to the income earned by our other subsidiaries. 43 Critical Accounting Policies and 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 as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
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.
Given the level of sensitivity in the inputs, a change in the value of any one input, in isolation or in combination, could affect the overall estimation of fair value of the reporting unit. 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.
Management further analyzes NOI by evaluating the performance from the following groups: • Same-store properties, which include all of the properties owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of December 31, 2024; and • Non-same-store, which includes: • Stabilized non-same store properties • Lease-up properties • Repositioning properties • Development properties • Redevelopment properties • Held for sale properties • Operating results from studio service-related businesses 49 The following table reconciles net loss to NOI (in thousands, except percentage change): Year Ended December 31, 2024 2023 Dollar Change Percentage Change NET LOSS $ (381,406) $ (170,700) $ (210,706) 123.4 % Adjustments: Loss from unconsolidated real estate entities 7,308 3,902 3,406 87.3 Fee income (5,269) (6,181) 912 (14.8) Interest expense 177,393 214,415 (37,022) (17.3) Interest income (2,467) (2,182) (285) 13.1 Management services reimbursement income—unconsolidated real estate entities (4,119) (4,125) 6 (0.1) Management services expense—unconsolidated real estate entities 4,119 4,125 (6) (0.1) Transaction-related expenses 2,499 (1,150) 3,649 (317.3) Unrealized loss on non-real estate investment 3,958 3,120 838 26.9 Gain on extinguishment of debt — (10,000) 10,000 (100.0) Loss on sale of bonds — 34,046 (34,046) (100.0) Loss (gain) on sale of real estate 2,453 (103,202) 105,655 (102.4) Impairment loss 149,664 60,158 89,506 148.8 Other (income) expense (1,647) 6 (1,653) (27,550.0) Income tax provision 1,641 6,796 (5,155) (75.9) General and administrative 79,451 74,958 4,493 6.0 Depreciation and amortization 354,425 397,846 (43,421) (10.9) NOI $ 388,003 $ 501,832 $ (113,829) (22.7) % Same-store NOI $ 377,682 $ 438,947 $ (61,265) (14.0) % Non-same-store NOI 10,321 62,885 (52,564) (83.6) NOI $ 388,003 $ 501,832 $ (113,829) (22.7) % The following table summarizes certain statistics of our consolidated same-store office and studio properties: Year Ended December 31, 2024 2023 Same-store office Number of properties 38 38 Rentable square feet 11,257,195 11,257,195 Ending % leased 77.0 % 79.9 % Ending % occupied 76.5 % 78.9 % Average % occupied for the period 76.9 % 82.9 % Average annual rental rate per square foot $ 58.31 $ 58.51 Same-store studio Number of properties 3 3 Rentable square feet 1,211,168 1,211,168 Average % leased over period (1) 73.8 % 80.4 % _____________ 1.
Management further analyzes NOI by evaluating the performance from the following groups: • Same-store properties, which include all of the properties owned and included in our stabilized portfolio as of January 1, 2024 and still owned and included in the stabilized portfolio as of December 31, 2025; and • Non-same-store, which includes: • Stabilized non-same store properties • Lease-up properties • Repositioning properties • Development properties • Redevelopment properties • Held for sale properties • Operating results from studio service-related businesses 50 The following table reconciles net loss to NOI (in thousands, except percentage change): Year Ended December 31, 2025 2024 Dollar Change Percentage Change NET LOSS $ (592,298) $ (381,406) $ (210,892) 55.3 % Adjustments: Loss from unconsolidated real estate entities 67 7,308 (7,241) (99.1) Fee income (5,399) (5,269) (130) 2.5 Interest expense 172,218 177,393 (5,175) (2.9) Interest income (6,238) (2,467) (3,771) 152.9 Management services reimbursement income—unconsolidated real estate entities (4,206) (4,119) (87) 2.1 Management services expense—unconsolidated real estate entities 4,206 4,119 87 2.1 Transaction-related expenses 590 2,499 (1,909) (76.4) Unrealized loss on non-real estate investment 2,998 3,958 (960) (24.3) Loss on extinguishment of debt 10,453 — 10,453 — Loss on deconsolidation of real estate entity 77,907 — 77,907 — (Gain) loss on sale of real estate, net (5,714) 2,453 (8,167) (332.9) Impairment loss 299,320 149,664 149,656 100.0 Other expense (income) 1,812 (1,647) 3,459 (210.0) Income tax (benefit) provision (273) 1,641 (1,914) (116.6) General and administrative 72,953 79,451 (6,498) (8.2) Depreciation and amortization 374,967 354,425 20,542 5.8 NOI $ 403,363 $ 388,003 $ 15,360 4.0 % Same-store NOI $ 347,160 $ 377,819 $ (30,659) (8.1) % Non-same-store NOI 56,203 10,184 46,019 451.9 NOI $ 403,363 $ 388,003 $ 15,360 4.0 % The following table summarizes certain statistics of our consolidated same-store office and studio properties: Year Ended December 31, 2025 2024 Same-store office Number of properties 38 38 Rentable square feet 11,649,252 11,590,798 Ending % leased 74.9 % 77.5 % Ending % occupied 74.2 % 76.9 % Average % occupied for the period 72.8 % 77.0 % Average annual rental rate per square foot $ 56.94 $ 58.17 Same-store studio Number of properties 3 3 Rentable square feet 1,204,666 1,204,666 Average % leased over period (1) 78.8 % 73.8 % _____________ 1.
Cash Flows Comparison of the cash flow activity for the year ended December 31, 2024 to the year ended December 31, 2023 is as follows (in thousands, except percentage change): Year Ended December 31, 2024 2023 Dollar Change Percentage Change Net cash provided by operating activities $ 164,657 $ 232,256 $ (67,599) (29.1) % Net cash (used in) provided by investing activities $ (250,539) $ 467,841 $ (718,380) (153.6) % Net cash provided by (used in) financing activities $ 65,903 $ (866,672) $ 932,575 (107.6) % Cash and cash equivalents and restricted cash were $99.2 million and $119.2 million at December 31, 2024 and 2023, respectively. 57 Operating Activities Net cash provided by operating activities decreased by $67.6 million, or 29.1%, to $164.7 million for the year ended December 31, 2024 as compared to $232.3 million for the year ended December 31, 2023.
Cash Flows Comparison of the cash flow activity for the year ended December 31, 2025 to the year ended December 31, 2024 is as follows (in thousands, except percentage change): Year Ended December 31, 2025 2024 Dollar Change Percentage Change Net cash provided by operating activities $ 120,977 $ 164,657 $ (43,680) (26.5) % Net cash provided by (used in) investing activities $ 42,845 $ (250,539) $ 293,384 (117.1) % Net cash (used in) provided by financing activities $ (100,871) $ 65,903 $ (166,774) (253.1) % Cash and cash equivalents and restricted cash were $162.1 million and $99.2 million at December 31, 2025 and 2024, respectively.
The change resulted primarily a $1.2 billion decrease in payments of unsecured and secured debt, partially offset by a $201.6 million decrease in borrowings during the year ended December 31, 2024 as compared to the year ended December 31, 2023, as well as $145.5 million proceeds from the sale of bonds in 2023 that did not recur in 2024.
The change resulted primarily from a $2.0 billion increase in payments of unsecured and secured debt, partially offset by a $1.1 billion increase in borrowings and $661.8 million in proceeds from the sale of common stock and pre-funded warrants during the year ended December 31, 2025.
During the year ended December 31, 2023, we recorded an income tax provision of $6.8 million primarily related to a valuation allowance recorded against certain deferred tax assets.
Income tax benefit (provision) During the year ended December 31, 2025, we recorded an income tax benefit of $0.3 million primarily related to the deferred tax effect of impairment losses related to Quixote during the year ended December 31, 2025.
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 five to seven years. The Company assesses its intangible assets with finite lives for impairment when indicators of impairment are identified.
The estimated useful lives for acquired intangible assets range from five to seven years. The Company assesses its intangible assets with finite lives for impairment when indicators of impairment are identified in a manner similar to the goodwill analysis and the inputs are generally considered Level 3 within the fair value hierarchy.
We and certain of our TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. We and our TRSs are no longer subject to tax examinations by tax authorities for years prior to 2020.
We and our TRSs are no longer subject to tax examinations by tax authorities for years prior to 2022 for federal purposes and 2021 for state purposes, subject to applicable statutes of limitations.
Comparison of the year ended December 31, 2023 to the year ended December 31, 2022 Refer to Part II, Item 7 “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations—Comparison of the year ended December 31, 2023 to the year ended December 31, 2022” of the Form 10-K for the fiscal year ended December 31, 2023. 54 Liquidity and Capital Resources We have remained capitalized since our initial public offering through public offerings, private placements, joint ventures and continuous offerings under our at-the-market (“ATM”) program.
Liquidity and Capital Resources We have remained capitalized since our initial public offering through public offerings, private placements, joint ventures and continuous offerings under our at-the-market (“ATM”) program.
However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations. 58 The following table presents a reconciliation of net loss to FFO (in thousands): Year Ended December 31, 2024 2023 Net loss $ (381,406) $ (170,700) Adjustments: Depreciation and amortization—consolidated 354,425 397,846 Depreciation and amortization—non-real estate assets (34,716) (33,389) Depreciation and amortization—HPP’s share from unconsolidated real estate entities 5,630 4,779 Loss (gain) on sale of real estate 2,453 (103,202) Loss on sale of bonds — 34,046 Impairment loss—real estate assets 42,049 60,158 Unrealized loss on non-real estate investments 3,958 3,120 FFO attributable to non-controlling interests (12,789) (42,335) FFO attributable to preferred shares and units (20,800) (20,800) FFO TO COMMON STOCKHOLDERS AND UNITHOLDERS $ (41,196) $ 129,523
The following table presents a reconciliation of net loss to FFO (in thousands): Year Ended December 31, 2025 2024 Net loss $ (592,298) $ (381,406) Adjustments: Depreciation and amortization—consolidated 374,967 354,425 Depreciation and amortization—non-real estate assets (35,852) (34,716) Depreciation and amortization—HPP’s share from unconsolidated real estate entities 4,654 5,630 (Gain) loss on sale of real estate, net (5,714) 2,453 Loss on deconsolidation of real estate entity 77,907 — Impairment loss—real estate assets 18,476 42,049 Unrealized loss on non-real estate investments 2,998 3,958 FFO attributable to non-controlling interests (18,092) (12,789) FFO attributable to preferred shares and units (20,552) (20,800) FFO TO COMMON STOCKHOLDERS AND UNITHOLDERS $ (193,506) $ (41,196) 59
This loan is interest-only through its term. The maturity date includes the effect of extension options.
This loan is interest-only through its term. The maturity date includes the effect of extension options. (3) Amount drawn includes principal of $100.6 million and accrued payment-in-kind interest of $1.8 million as of December 31, 2025.
The decrease was partially offset by interest on the loan secured by Sunset Glenoaks Studios, which became a consolidated property as of April 1, 2024. Capitalized interest increased by $8.1 million, or 25.2%, to $40.4 million for the year ended December 31, 2024 compared to $32.3 million for the year ended December 31, 2023.
The decrease was partially offset by the interest expense related to the Office Portfolio CMBS loan, which was obtained in March 2025. Capitalized interest decreased by $1.1 million, or 2.7%, to $39.3 million for the year ended December 31, 2025 compared to $40.4 million for the year ended December 31, 2024.
The increase was primarily driven by the sale of a non-real estate investment during the year ended December 31, 2024.
Other (expense) income During the year ended December 31, 2025, we recognized other expense of $1.8 million primarily due to a loss on the sale of non-real estate property, plant and equipment. During the year ended December 31, 2024 we recognized other income of $1.6 million primarily driven by the sale of a non-real estate investment.
We also look to opportunistically recycle capital to enhance our portfolio or to otherwise further our capital allocation goals. Changes in demand for office and/or studio space, capital markets, and other macro-economic factors may impact our business and overall performance.
We also look to opportunistically recycle capital to enhance our portfolio or to otherwise further our capital allocation goals.
Credit Ratings The following table provides information with respect to our credit ratings at December 31, 2024: Agency Credit Rating Moody’s B2 Standard and Poor’s BB- Fitch BB- Liquidity Uses Contractual Obligations The following table provides information with respect to our commitments at December 31, 2024, including any guaranteed or minimum commitments under contractual obligations (in thousands): Payments Due by Period Contractual Obligation Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Principal payments on unsecured and secured debt (1) $ 4,187,667 $ 741,300 $ 2,095,367 $ 951,000 $ 400,000 Principal payments on joint venture partner debt (1) 66,136 — — — 66,136 Interest payments—fixed rate (1)(2)(3) 375,416 128,974 171,251 66,433 8,758 Interest payments—variable rate (1)(2)(4) 128,620 76,775 51,845 — — Operating leases (5) 712,548 42,072 83,175 78,888 508,413 TOTAL $ 5,470,387 $ 989,121 $ 2,401,638 $ 1,096,321 $ 983,307 _____________ 1.
Credit Ratings The following table provides information with respect to our credit ratings at December 31, 2025: Agency Credit Rating Moody’s B2 Standard and Poor’s B Fitch B+ Liquidity Uses Contractual Obligations The following table provides information with respect to our commitments at December 31, 2025, including any guaranteed or minimum commitments under contractual obligations (in thousands): Payments Due by Period Contractual Obligation Total Less than 1 Year 1-3 Years 3-5 Years More than 5 Years Principal payments on unsecured and secured debt (1) $ 3,367,850 $ 1,079,767 $ 871,000 $ 1,417,083 $ — Principal payments on joint venture partner debt (1) 66,136 — — — 66,136 Interest payments—fixed rate (1)(2)(3) 353,258 116,989 173,545 57,442 5,282 Interest payments—variable rate (1)(2)(4) 21,139 17,994 1,922 1,223 — Operating leases (5) 631,934 35,612 69,523 63,725 463,074 TOTAL $ 4,440,317 $ 1,250,362 $ 1,115,990 $ 1,539,473 $ 534,492 _____________ 1.
Generally, we have assessed our tax positions for all open years, which as of December 31, 2024 include 2021 to 2023 for Federal purposes and 2020 to 2023 for state purposes, and concluded that there are no material uncertainties to be recognized. 47 Results of Operations The following table summarizes our portfolio as of December 31, 2024 : Number of Properties Rentable Square Feet (1) Percent Occupied (2) Percent Leased (2) Annualized Base Rent per Square Foot (3) OFFICE Same-store (4) 39 12,794,354 77.9 % 78.5 % $ 54.31 Stabilized non-same store (5) 1 31,613 45.8 45.8 33.00 Total stabilized 40 12,825,967 77.8 78.4 54.27 Lease-up (5)(6) 1 724,381 86.5 87.9 61.64 Total in-service office 41 13,550,348 78.3 78.9 54.71 STUDIO Same-store (7) 3 1,211,168 73.8 73.8 47.41 Non-same-store (5) 1 241,000 Total 4 1,452,168 Repositioning (5)(8) 1 260,567 — — — Development (5)(9) 2 778,000 0.3 0.4 — Held-for-sale (5) 2 298,084 85.2 85.2 72.64 Total repositioning and development 5 1,336,651 Total office and studio properties 50 16,339,167 Future development (10) 7 3,233,589 TOTAL 57 19,572,756 ____________ 1.
Generally, we have assessed our tax positions for all open years, which as of December 31, 2025 include 2022 to 2024 for federal purposes and 2021 to 2024 for state purposes, and concluded that there are no material uncertainties to be recognized. 48 Results of Operations The following table summarizes our portfolio as of December 31, 2025 : Number of Properties Rentable Square Feet (1) Percent Occupied (2) Percent Leased (2) Annualized Base Rent per Square Foot (3) OFFICE Same-store (4) 38 11,649,252 74.2 % 74.9 % $ 56.96 Non-same store 1 1,528,789 92.5 93.2 30.74 Total in-service office 39 13,178,041 76.3 % 77.0 % $ 53.27 STUDIO Same-store (5) 3 1,204,666 78.8 % 78.8 % $ 46.96 Non-same-store 1 243,300 9.3 9.3 37.62 Total in-service studio 4 1,447,966 67.1 % 67.1 % $ 46.76 Total 43 14,626,007 Repositioning (6) 1 240,569 — % — % $ — Development (7) 2 778,000 0.3 0.3 — Total repositioning and development 3 1,018,569 0.3 % 0.3 % $ — Total office and studio properties 46 15,644,576 Future development (8) 6 3,162,212 TOTAL 52 18,806,788 ____________ 1.
During the year ended December 31, 2023, we recognized a $103.2 million gain on sale of real estate attributable to the sales of our Skyway Landing, 604 Arizona, 3401 Exposition, Cloud10, One Westside and Westside Two properties.
No gain or loss on deconsolidation was recognized during the year ended December 31, 2024. Gain (loss) on sale of real estate, net During the year ended December 31, 2025, we recognized a $5.7 million net gain on sale of real estate attributable to the sales of our Foothill Research, Maxwell and Element LA properties.
The change was primarily driven by higher interest expense at the unconsolidated entities in 2024 due to an increase in the average reference rates for variable rate debt and a mark-to-market adjustment for an interest rate swap that does not qualify for hedge accounting.
The change was primarily driven by nonrecurring mark-to-market adjustments for an interest rate swap that did not qualify for hedge accounting during the year ended December 31, 2024 and a distribution received in excess of our investment in an unconsolidated real estate entity during the year ended December 31, 2025.
The increase was primarily driven by capitalized interest for the Sunset Glenoaks Studios and Washington 1000 development projects. Non-cash interest expense decreased by $14.1 million, or 64.6% to $7.7 million for the year ended December 31, 2024 compared to $21.9 million for the year ended December 31, 2023.
Non-cash interest expense increased by $6.5 million, or 84.0% to $14.2 million for the year ended December 31, 2025 compared to $7.7 million for the year ended December 31, 2024.
No gain or loss on extinguishment of debt was recognized during the year ended December 31, 2024. Loss on sale of bonds During the year ended December 31, 2023, we recognized a loss on sale of bonds of $34.0 million in connection with the partial sale of the acquired Hollywood Media Portfolio debt.
No gain or loss on extinguishment of debt was recognized during the year ended December 31, 2024. Loss on deconsolidation of real estate entity During the year ended December 31, 2025, we recognized a $77.9 million loss related to the deconsolidation of our Sunset Glenoaks Studios property.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+2 added−1 removed7 unchanged
The remainder of each is accounted for under mark-to-market accounting. 2.
The remainder is accounted for under mark-to-market accounting. 2.
Any gains or losses resulting from the translation of Canadian dollars and pound sterling to U.S. dollars are classified on our Consolidated Balance Sheets as a separate component of other comprehensive (loss) income and are excluded from net loss. ITEM 8.
The unconsolidated real estate entities’ functional currency is the local currency, or Canadian dollars and pound sterling, respectively. Any gains or losses resulting from the translation of Canadian dollars and pound sterling to U.S. dollars are classified on our Consolidated Balance Sheets as a separate component of other comprehensive loss and are excluded from net loss. ITEM 8.
For sensitivity purposes, if the reference rates for our variable rate debt as of December 31, 2024 were to increase by 100 basis points, or 1.0%, the resulting increase in annual interest expense would decrease our future earnings and cash flows by $11.0 million.
For sensitivity purposes, if the reference rates for our variable rate debt as of December 31, 2025 were to increase by 100 basis points, or 1.0%, the resulting increase in annual interest expense would decrease our future earnings and cash flows by $5.5 million. 60 Foreign Currency Exchange Rate Risk We have exposure to foreign currency exchange rate risk related to our unconsolidated real estate entities operating in Canada and the United Kingdom.
The following table summarizes the terms our derivative instruments used to hedge interest rate risk as of December 31, 2024 (notional amounts and fair value in thousands): Underlying Debt Instrument Type of Instrument Accounting Policy Notional Amount Effective Date Maturity Date Interest Rate Fair Value Assets (Liabilities) Sunset Glenoaks Studios Cap Cash flow hedge $ 100,600 August 2022 January 2025 4.50% — Sunset Glenoaks Studios Cap Cash flow hedge $ 100,600 January 2025 January 2026 4.50% 72 1918 Eighth Swap Cash flow hedge $ 172,865 February 2023 October 2025 3.75% 524 1918 Eighth Cap Partial cash flow hedge (1) $ 314,300 June 2023 December 2025 5.00% 62 1918 Eighth Sold cap (2) Mark-to-market $ 172,865 June 2023 December 2025 5.00% (34) Hollywood Media Portfolio Swap Cash flow hedge $ 351,186 August 2023 June 2026 3.31% 3,663 Hollywood Media Portfolio Swap Cash flow hedge $ 180,000 February 2024 August 2026 4.13% (267) Hollywood Media Portfolio Cap Partial cash flow hedge (1) $ 1,100,000 August 2024 August 2025 6.01% 4 Hollywood Media Portfolio Sold cap (2) Mark-to-market $ 561,000 August 2024 August 2025 6.01% (2) TOTAL $ 4,022 _____________ 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 following table summarizes the terms our derivative instruments used to hedge interest rate risk as of December 31, 2025 (notional amounts and fair value in thousands): Underlying Debt Instrument Type of Instrument Accounting Policy Notional Amount Effective Date Maturity Date Interest Rate (Range) Fair Value Assets (Liabilities) Hollywood Media Portfolio CMBS Swap Cash flow hedge $ 351,186 August 2023 June 2026 3.31% 430 Hollywood Media Portfolio CMBS Swap Cash flow hedge $ 180,000 February 2024 August 2026 4.13% (660) Hollywood Media Portfolio CMBS Cap Partial cash flow hedge (1) $ 1,100,000 August 2025 August 2026 4.95% — Hollywood Media Portfolio CMBS Sold cap (2) Mark-to-market $ 561,000 August 2025 August 2026 4.95% — Office Portfolio CMBS Cap Mark-to-market $ 475,000 March 2025 April 2027 4.96% 14 Office Portfolio CMBS Sold cap (2) Mark-to-market $ 475,000 March 2025 April 2027 4.96% (14) Office Portfolio CMBS (3) Cap Cash flow hedge $ 11,250 December 2025 February 2027 3.35% 15 Office Portfolio CMBS (4) Swap Cash flow hedge $ 250,000 December 2025 April 2029 3.41% (732) N/A Corridor Mark-to-market $ 425,000 January 2026 March 2026 0.53% - 3.35% 2,901 TOTAL $ 1,954 _____________ 1. $539 thousand of the notional amount of the Hollywood Media Portfolio CMBS cap has been designated as an effective cash flow hedge for accounting purposes.
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. 59 The following table summarizes our fixed and variable rate debt as of December 31, 2024 (in thousands): Unsecured and Secured Debt Joint Venture Partner Debt Carrying Value Fair Value Carrying Value Fair Value Variable rate $ 1,099,616 $ 1,099,616 $ — $ — Fixed rate (1) 3,088,051 2,681,549 66,136 60,637 TOTAL (2) $ 4,187,667 $ 3,781,165 $ 66,136 $ 60,637 _____________ 1.
The following table summarizes our fixed and variable rate debt as of December 31, 2025 (in thousands): Unsecured and Secured Debt Joint Venture Partner Debt Carrying Value Fair Value Carrying Value Fair Value Variable rate $ 551,083 $ 551,083 $ — $ — Fixed rate (1) 2,816,767 2,685,213 66,136 62,390 TOTAL (2) $ 3,367,850 $ 3,236,296 $ 66,136 $ 62,390 _____________ 1.
Removed
Foreign Currency Exchange Rate Risk We have exposure to foreign currency exchange rate risk related to our unconsolidated real estate entities operating in Canada and the United Kingdom. The unconsolidated real estate entities’ functional currency is the local currency, or Canadian dollars and pound sterling, respectively.
Added
The sold caps serve to offset the changes in fair value of the portion of the Hollywood Media Portfolio CMBS cap that is not designated as a cash flow hedge for accounting purposes and the change in fair value of the full Office Portfolio CMBS cap, which is not designated as a cash flow hedge for accounting purposes. 3.
Added
The notional amount decreases on a monthly basis to follow the amortization of the underlying debt instrument. 4. The notional amount will decrease on a monthly basis to follow the amortization of the underlying debt instrument commencing in February 2027.

Other HPP 10-K year-over-year comparisons