Company: HPP
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001482512-25-000029
Chunk: 1

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 1
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ollywood Media PortfolioSwapCash flow hedge$180,000 February 2024August 20264.13%(267)Hollywood Media PortfolioCapPartial cash flow hedge(1)$1,100,000 August 2024August 20256.01%4 Hollywood Media PortfolioSold cap(2)Mark-to-market$561,000 August 2024August 20256.01%(2)TOTAL$4,022 

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1.$141,435 and $539,000 of the notional amounts of the 1918 Eighth and Hollywood Media Portfolio caps, respectively, have been designated as effective cash flow hedges for accounting purposes. The remainder of each is accounted for under mark-to-market accounting.

2.The sold caps serve to offset the changes in fair value of the portions of the 1918 Eighth and Hollywood Media Portfolio caps that are not designated as cash flow hedges for accounting purposes.

59

The following table summarizes our fixed and variable rate debt as of December 31, 2024 (in thousands):Unsecured and Secured DebtJoint Venture Partner DebtCarrying ValueFair ValueCarrying ValueFair ValueVariable 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 

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1.Includes debt that is effectively fixed through the use of interest rate swaps.

2.Excludes unamortized deferred financing costs. 

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.

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. 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.