Company: HPP
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001482512-25-000043
Chunk: 75

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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5:YearAmountRemaining 2025$381,948 2026467,980 2027412,100 2028342,352 2029274,300 Thereafter567,324 TOTAL$2,446,004 Operating Lease AgreementsThe Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 10 ground leases, six sound stage leases, five office leases and 17 other leases as of March 31, 2025. The weighted average remaining lease term was 22 years as of March 31, 2025. The weighted average incremental borrowing rate used to calculate the right-of-use (“ROU”) assets and lease liabilities was 5.7% as of March 31, 2025. The Company’s operating lease obligations have expiration dates ranging from 2025 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value.As of March 31, 2025, the present value of the remaining contractual payments of $672.3 million under the Company’s operating lease agreements was $369.5 million. The corresponding operating lease ROU assets amounted to $353.7 million.

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Table of ContentsHudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.Notes to Unaudited Consolidated Financial Statements(Unaudited, tabular amounts in thousands, except square footage, share and unit data)

The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of March 31, 2025:YearLease Payments(1)Remaining 2025$33,743 202636,942 202737,451 202836,507 202934,305 Thereafter493,366 Total operating lease payments672,314 Less: interest portion(302,830)PRESENT VALUE OF OPERATING LEASE LIABILITIES$369,484 __________________ 1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date.The following table summarizes rental expense for operating leases:Three Months Ended March