Company: HPP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001482512-25-000150
Chunk: 86

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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158 Thereafter493,614 Total operating lease payments643,955 Less: interest portion(293,219)PRESENT VALUE OF OPERATING LEASE LIABILITIES$350,736 __________________ 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 September 30,Nine Months Ended September 30,2025202420252024Variable rental expense$1,612 $2,586 $4,066 $7,443 Minimum rental expense$10,525 $11,507 $38,539 $34,140 

13. Fair Value of Financial Instruments

The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:September 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalInterest rate derivative assets(1)$— $2,086 $— $2,086 $— $4,325 $— $4,325 Interest rate derivative liabilities(2)$— $(1,644)$— $(1,644)$— $(303)$— $(303)Non-real estate investments measured at NAV(1)(3)$— $— $— $47,078 $— $— $— $47,373 __________________ 1.Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets.  2.Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets.3.According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.Level 2 items include interest rate caps and swaps, which are valued on a quarterly basis using a linear regression model. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values.Other Financial Instruments    The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1