Hudson Pacific Properties, Inc. Income Taxes Disclosure
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Loss from U.S. operations | $ | (599,223) | $ | (379,339) | $ | (166,833) | |||||||||||
| Income (loss) from foreign operations | 6,652 | (426) | 2,929 | ||||||||||||||
| Loss from continuing operations | $ | (592,571) | $ | (379,765) | $ | (163,904) | |||||||||||
| Year Ended | |||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Current federal | $ | — | $ | (5) | $ | (171) | |||||||||||
Current state and local(1) | — | — | (16) | ||||||||||||||
Current foreign(2) | (1,437) | (1,043) | — | ||||||||||||||
| Deferred federal | 1,295 | (113) | (2,672) | ||||||||||||||
Deferred state and local(1) | 635 | 601 | (1,833) | ||||||||||||||
Deferred foreign(2) | (220) | (1,081) | (2,104) | ||||||||||||||
| Income tax benefit (provision) | $ | 273 | $ | (1,641) | $ | (6,796) | |||||||||||
| Year Ended | |||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||||||||
| Income tax benefit computed at the federal statutory rate | $ | 124,440 | 21.0 | % | $ | 79,751 | 21.0 | % | $ | 34,420 | 21.0 | % | |||||||||||||||||||||||
| Income tax benefit attributable to non-taxable entities | (44,855) | (7.6) | (37,893) | (10.0) | (16,643) | (10.2) | |||||||||||||||||||||||||||||
| California state income taxes, net of federal tax benefit | 2,321 | 0.4 | 11,850 | 3.1 | 4,810 | 2.9 | |||||||||||||||||||||||||||||
Adjustment to rate change - state(1) | (14,422) | (2.4) | — | — | — | — | |||||||||||||||||||||||||||||
| Valuation allowance - federal | (78,491) | (13.3) | (38,200) | (10.1) | (19,310) | (11.8) | |||||||||||||||||||||||||||||
Valuation allowance - state(1)(2) | 12,919 | 2.2 | (10,748) | (2.8) | (6,271) | (3.8) | |||||||||||||||||||||||||||||
| Valuation allowance - Canada | (296) | — | (3,124) | (0.8) | (4,100) | (2.5) | |||||||||||||||||||||||||||||
| Valuation allowance - United Kingdom | (612) | (0.1) | (1,157) | (0.3) | — | — | |||||||||||||||||||||||||||||
| Other adjustments | (731) | (0.1) | (2,120) | (0.5) | 298 | 0.3 | |||||||||||||||||||||||||||||
| Income tax benefit (provision) / effective tax rate | $ | 273 | 0.1 | % | $ | (1,641) | (0.4) | % | $ | (6,796) | (4.1) | % | |||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||
| Deferred tax assets: | |||||||||||||||||
| Net operating loss and tax credit carryforwards | $ | 79,205 | $ | 68,457 | $ | 41,339 | |||||||||||
| Depreciation and amortization | 74,336 | 29,237 | 11,124 | ||||||||||||||
| Prepaid rent | 564 | 703 | 1,578 | ||||||||||||||
| Other | 499 | 973 | 122 | ||||||||||||||
| Total deferred tax assets | 154,604 | 99,370 | 54,163 | ||||||||||||||
| Valuation allowance | (149,186) | (82,706) | (29,477) | ||||||||||||||
| Net deferred tax assets | 5,418 | 16,664 | 24,686 | ||||||||||||||
| Deferred tax liabilities: | |||||||||||||||||
| Depreciation and amortization | (2,267) | (14,432) | (21,170) | ||||||||||||||
| Unrealized gain on non-real estate investments | (3,077) | (3,912) | (4,640) | ||||||||||||||
| Other | (241) | (205) | (169) | ||||||||||||||
| Total deferred tax liabilities | (5,585) | (18,549) | (25,979) | ||||||||||||||
| Deferred tax liability, net | $ | (167) | $ | (1,885) | $ | (1,293) | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 16, 2024 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.