Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 86

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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ated Financial Statements(Unaudited, tabular amounts in thousands, except square footage, share and unit data)

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 June 30, 2025, the present value of the remaining contractual payments of $657.5 million under the Company’s operating lease agreements was $358.5 million. The corresponding operating lease ROU assets amounted to $347.7 million.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 June 30, 2025:YearLease Payments(1)Remaining 2025$18,046 202636,635 202737,611 202836,897 202934,725 Thereafter493,631 Total operating lease payments657,545 Less: interest portion(299,017)PRESENT VALUE OF OPERATING LEASE LIABILITIES$358,528 __________________ 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 June 30,Six Months Ended June 30,2025202420252024Variable rental expense$1,459 $2,754 $2,454 $4,857 Minimum rental expense$10,866 $11,313 $28,014 $22,632 

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:June 30, 2025December 31, 2024Level 1Level 2Level 3TotalLevel 1Level 2Level 3TotalInterest rate derivative assets(1)$— $4,047 $— $4,047 $— $4,325 $— $4,325 Interest rate derivative liabilities(2)$— $(1,387)$— $(1,387)$— $(303)$— $(303)Non