Hudson Pacific Properties, Inc.HPP
Hudson Pacific Properties, Inc. Debt Disclosure
Debt
The following table sets forth information with respect to our outstanding indebtedness:
| December 31, 2025 | December 31, 2024 | Interest Rate(1) | Contractual Maturity Date(2) | |||||||||||||||||||||||
| UNSECURED AND SECURED DEBT | ||||||||||||||||||||||||||
| Unsecured debt | ||||||||||||||||||||||||||
Unsecured revolving credit facility(3)(4) | $ | — | $ | 320,000 | SOFR + 1.15% to 1.60% | 12/31/2029 | (5) | |||||||||||||||||||
| Series B notes | — | 259,000 | 4.69% | 12/16/2025 | ||||||||||||||||||||||
| Series C notes | — | 56,000 | 4.79% | 12/16/2027 | ||||||||||||||||||||||
| Series D notes | — | 150,000 | 3.98% | 7/6/2026 | ||||||||||||||||||||||
3.95% Registered senior notes | 400,000 | 400,000 | 3.95% | 11/1/2027 | ||||||||||||||||||||||
4.65% Registered senior notes | 500,000 | 500,000 | 4.65% | 4/1/2029 | ||||||||||||||||||||||
3.25% Registered senior notes | 400,000 | 400,000 | 3.25% | 1/15/2030 | ||||||||||||||||||||||
5.95% Registered senior notes(6) | 350,000 | 350,000 | 5.95% | 2/15/2028 | ||||||||||||||||||||||
| Total unsecured debt | 1,650,000 | 2,435,000 | ||||||||||||||||||||||||
| Secured debt | ||||||||||||||||||||||||||
Hollywood Media Portfolio CMBS(7)(8) | 1,100,000 | 1,100,000 | SOFR + 1.10% | 8/9/2026 | ||||||||||||||||||||||
Acquired Hollywood Media Portfolio debt | (30,233) | (30,233) | SOFR + 2.11% | 8/9/2026 | ||||||||||||||||||||||
Hollywood Media Portfolio, net(9)(10) | 1,069,767 | 1,069,767 | ||||||||||||||||||||||||
| Element LA | — | 168,000 | 4.59% | 11/6/2025 | ||||||||||||||||||||||
1918 Eighth CMBS(8) | 285,000 | 314,300 | 6.16% | 9/11/2030 | ||||||||||||||||||||||
Hill7 CMBS(11) | 101,000 | 101,000 | 3.38% | 11/6/2028 | ||||||||||||||||||||||
Sunset Glenoaks Studios(12) | — | 99,600 | SOFR + 3.10% | 1/9/2027 | ||||||||||||||||||||||
Office Portfolio CMBS(13)(14) | 262,083 | — | SOFR + 4.15% | 4/9/2030 | (15) | |||||||||||||||||||||
| Total secured debt | 1,717,850 | 1,752,667 | ||||||||||||||||||||||||
| Total unsecured and secured debt | 3,367,850 | 4,187,667 | ||||||||||||||||||||||||
Unamortized deferred financing costs/loan discounts(16) | (16,392) | (10,823) | ||||||||||||||||||||||||
| TOTAL UNSECURED AND SECURED DEBT, NET | $ | 3,351,458 | $ | 4,176,844 | ||||||||||||||||||||||
JOINT VENTURE PARTNER DEBT(17) | $ | 66,136 | $ | 66,136 | 4.50% | 10/9/2032 | (18) | |||||||||||||||||||
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1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of December 31, 2025, which may be different than the interest rates as of December 31, 2024 for corresponding indebtedness.
2.Maturity dates include the effect of extension options.
3.The annual facility fee rate ranges from 0.15% or 0.30% based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of December 31, 2025, no such election had been made.
4.The Company has a total capacity of $795.3 million available under its unsecured revolving credit facility, which may be increased up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan, subject to the satisfaction of certain conditions and lender commitments.
5.$333.3 million of the revolving commitments had an initial maturity date of December 21, 2025 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company. The first extension option was exercised on December 10, 2025. $462.0 million of the revolving commitments have an initial maturity date of December 31, 2028 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company.
6.An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects.
7.This loan is secured by eight properties: Sunset Gower Studios, Sunset Las Palmas Studios, Sunset Bronson Studios, 6040 Sunset, Harlow, ICON, CUE and EPIC.
8.This loan is interest-only through its term.
9.The Company purchased bonds comprising the loan in the amount of $30.2 million.
10.The floating interest rate on $539.0 million of principal has been capped at 6.01% through the use of an interest rate cap. The floating interest rate on $351.2 million of principal is effectively fixed at 3.31% through the use of an interest rate swap. The floating interest rate on $179.6 million of principal is effectively fixed at 4.13% through the use of an interest rate swap.
11.This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity.
12.Sunset Glenoaks Studios was consolidated as of December 31, 2024 and unconsolidated as of December 31, 2025. Therefore, the December 31, 2025 balance is reported at $0.
13.This loan is secured by five office properties: 11601 Wilshire, 5th & Bell, 450 Alaskan, 1740 Technology and 275 Brannan.
14.The loan requires monthly payments for principal and interest. The floating interest rate on $250.0 million of principal has been effectively fixed at 3.41% through the use of an interest rate swap. The floating interest rate on $11.3 million of principal has been capped at 3.35% through the use of an interest rate cap.
15.Includes the option to extend the initial maturity date of April 9, 2027 three times for an additional -year term each, permitting certain financial and other covenants are met.
16.Excludes deferred financing costs related to the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. Refer to Note 9 for details.
17.This amount relates to debt attributable to Allianz U.S. Private REIT LP (“Allianz”), the Company’s partner in the joint venture that owns the Ferry Building property.
18.Includes the option to extend the initial maturity date of October 9, 2028 twice for an additional two-year term each permitting certain financial covenants are met.
Current Year Activity
During the year ended December 31, 2025, there were $320.0 million of repayments on the unsecured revolving credit facility, net of borrowings. The Company generally uses the unsecured revolving credit facility to finance the acquisition of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.
During the twelve months ended December 31, 2025, the Company secured the Office Portfolio CMBS loan (a commercial mortgage-backed securities loan) with an initial aggregate principal amount of $475.0 million. The loan bears interest at SOFR + 4.15% and matures on April 9, 2027, with three optional one-year extensions permitting certain financial and other covenants are met. The Company used the proceeds from the loan to repay $259.0 million on its unsecured revolving credit facility and to repay the $168.0 million loan secured by the Element LA property. The early repayment of the Element LA loan resulted in a $1.9 million loss on extinguishment of debt on the Consolidated Statement of Operations. The loan was originally secured by six office properties, including the Element LA property. Upon the sale of the Element LA property in the fourth quarter of 2025, the Company made an early partial repayment of the Office Portfolio CMBS loan in the amount of $206.3 million. The early partial repayment resulted in a $6.8 million loss on extinguishment of debt on the Consolidated Statement of Operations. The loan is now secured by the remaining five office properties.
During the twelve months ended December 31, 2025, the Company amended its unsecured revolving credit facility agreement to adjust certain definitions and covenant calculations beginning with the period ending December 31, 2024. The amendment also resulted in a decrease in the total capacity from $900.0 million to $775.0 million. The Company then amended the agreement a second time, which resulted in an increase in the total capacity to $795.3 million and extended the maturity date for $462.0 million of the total commitments to December 31, 2029, which includes the effect of two optional six-month extensions at the sole discretion of the Company.
During the twelve months ended December 31, 2025, the Company fully repaid its Series B, Series C and Series D notes. The early repayment of the notes resulted in a $1.6 million loss on extinguishment of debt on the Consolidated Statement of Operations.
During the twelve months ended December 31, 2025, the Company refinanced its 1918 Eighth loan with a CMBS loan secured by the 1918 Eighth property with an aggregate principal balance of $285.0 million. The refinanced loan bears interest at a weighted average rate of 6.16% and matures on September 11, 2030. The refinance of the loan resulted in a $0.2 million loss on extinguishment of debt on the Consolidated Statement of Operations.
Indebtedness
The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates.
Loan agreements include events of default that the Company believes are usual for loans and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans.
The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (after the impact of extension options, if applicable) as of December 31, 2025:
| For the Year Ended December 31, | Unsecured and Secured Debt | Joint Venture Partner Debt | ||||||||||||
| 2026 | $ | 1,079,767 | $ | — | ||||||||||
| 2027 | 410,000 | — | ||||||||||||
| 2028 | 461,000 | — | ||||||||||||
| 2029 | 510,000 | — | ||||||||||||
| 2030 | 907,083 | — | ||||||||||||
| Thereafter | — | 66,136 | ||||||||||||
| TOTAL | $ | 3,367,850 | $ | 66,136 | ||||||||||
Unsecured Debt
Credit Facility
The operating partnership continues to be the borrower under its credit facility agreement, and the Company and all subsidiaries that own unencumbered properties will continue to provide guarantees unless the Company obtains and maintains a credit rating of at least BBB- from Standard & Poor’s (“S&P”) or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. As of December 31, 2025, the credit ratings for our senior unsecured debt were B2, B and B+ from Moody’s, Standard and Poor’s and Fitch, respectively.
Note Purchase Agreements
The operating partnership may prepay at any time all or, from time to time, any part of the note purchase agreements in an amount not less than 5% of the aggregate principal amount of any series of note purchase agreements then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a make-whole premium.
The operating partnership’s obligations under note purchase agreements are fully and unconditionally guaranteed by the Company. Subsidiaries of the Company will also issue unconditional guarantees upon the occurrence of certain conditions, including such subsidiaries providing guarantees under the Amended and Restated Credit Agreement, by and among the operating partnership, the financial institutions party thereto, and Wells Fargo Bank, National Association as administrative agent.
Debt Covenants
The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants.
The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility and term loans as of December 31, 2025:
| Covenant Ratio | Covenant Level | Actual Performance | ||||||||||||
| Total liabilities to total asset value | ≤ 60% | 43.1% | ||||||||||||
| Unsecured indebtedness to unencumbered asset value | ≤ 60% | 36.4% | ||||||||||||
| Adjusted EBITDA to fixed charges | ≥ 1.5x | 1.6x | ||||||||||||
| Secured indebtedness to total asset value | ≤ 45% | 23.0% | ||||||||||||
| Unencumbered net operating income to unsecured interest expense | ≥ 1.75x | 2.3x | ||||||||||||
| Minimum liquidity coverage | > $125MM | Yes | ||||||||||||
The following table summarizes existing covenants and their covenant levels related to our registered senior notes
as of December 31, 2025:
Covenant Ratio(1) | Covenant Level | Actual Performance | ||||||||||||
| Debt to total assets | ≤ 60% | 39.7% | ||||||||||||
| Total unencumbered assets to unsecured debt | ≥ 150% | 309.2% | ||||||||||||
| Consolidated income available for debt service to annual debt service charge | ≥ 1.5x | 1.9x | ||||||||||||
| Secured debt to total assets | ≤ 40% | 21.0% | ||||||||||||
_________________
1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes, 4.65% Senior Notes and 5.95% Senior Notes.
The operating partnership was in compliance with its financial covenants as of December 31, 2025.
Repayment Guarantees
Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities.
The Company and certain of its subsidiaries guarantee the operating partnership’s unsecured debt. The likelihood of loss relating to this guarantee is remote as of December 31, 2025.
Interest Expense
The following table represents a reconciliation from gross interest expense to the interest expense line item on the Consolidated Statements of Operations:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
Gross interest expense(1) | $ | 197,271 | $ | 210,022 | $ | 224,801 | ||||||||||||||
| Capitalized interest | (39,289) | (40,367) | (32,253) | |||||||||||||||||
Non-cash interest expense(2) | 14,236 | 7,738 | 21,867 | |||||||||||||||||
| INTEREST EXPENSE | $ | 172,218 | $ | 177,393 | $ | 214,415 | ||||||||||||||
_________________
1.Includes interest on the Company’s debt and hedging activities.
2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2018 | Feb 16, 2018 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.