Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 83

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 2024August 20264.13%(727)(267)Hollywood Media Portfolio CMBSCapPartial cash flow hedge(1)$1,100,000 August 2024August 20256.01%— 4 Hollywood Media Portfolio CMBSSold cap(2)Mark-to-market$561,000 August 2024August 20256.01%— (2)Sunset Glenoaks StudiosCapCash flow hedge$100,600 January 2025January 20264.50%9 72 Office Portfolio CMBSCapMark-to-market$475,000 March 2025April 20274.96%220 — Office Portfolio CMBSSold cap(2)Mark-to-market$475,000 March 2025April 20274.96%(216)— Office Portfolio CMBS(3)CapCash flow hedge$222,501 April 2025April 20273.35%1,847 — Office Portfolio CMBSSwapCash flow hedge$250,000 April 2025April 20293.41%(443)— TOTAL$2,660 $4,022 __________________ 1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio CMBS caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting.2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio CMBS caps that are not designated as cash flow hedges for accounting purposes, as well as 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.The notional amount decreases on a monthly basis to follow the amortization of the underlying debt instrument.The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of June 30, 2025, the Company expects $1.8 million of unrealized gain included in accumulated other comprehensive income will be reclassified as a reduction to interest expense in the next 12 months.

11. Income Taxes

Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended