Hudson Pacific Properties, Inc.HPP

Hudson Pacific Properties, Inc. Leases Disclosure

10-KFiled Feb 27, 20262 min read
Future Minimum Rents and Lease Payments
The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2026 to 2045.

The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2025:
Year Ended

2026$487,497 
2027434,018 
2028367,444 
2029296,032 
2030243,095 
Thereafter645,551 
TOTAL
$2,473,637 

Operating Lease Agreements

The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 10 ground leases, six sound stage leases, four office leases and 16 other leases as of December 31, 2025. The Company’s operating lease obligations have expiration dates ranging from 2026 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 December 31, 2025, the present value of the remaining contractual payments of $631.9 million under the Company’s operating lease agreements was $343.9 million. The corresponding operating lease ROU assets amounted to $333.3 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 December 31, 2025:
For the Year Ended December 31,
Lease Payments(1)
2026$35,612 
202735,064 
202834,459 
202933,172 
203030,553 
Thereafter463,074 
Total operating lease payments631,934 
Less: interest portion(288,048)
PRESENT VALUE OF OPERATING LEASE LIABILITIES(2)
$343,886 
_____________
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:
For the Year Ended December 31,
202520242023
Variable rental expense$8,764 $9,985 $11,005 
Minimum rental expense$48,658 $46,576 $45,145 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 25, 2025
2023Feb 16, 2024
2022Feb 10, 2023
2021Feb 18, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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