XML 60 R47.htm IDEA: XBRL DOCUMENT
v3.23.2

Debt (Tables) | 6 Months Ended
--- | ---
Jun. 30, 2023
Debt Disclosure [Abstract] |
Schedule of Long-Term Debt Instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness:
| June 30, 2023 |  | December 31, 2022 |  | Interest Rate(1) |  | Contractual Maturity Date(2) |  |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |  |
Unsecured revolving credit facility(3)(4) | $ | 528,000 |  |  | $ | 385,000 |  |  | SOFR + 1.15% to 1.60% |  | 12/21/2026 | (5) |
Series A notes | — |  |  | 110,000 |  |  | 4.34% |  | 1/2/2023 |  |
Series B notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |  |
Series C notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |  |
Series D notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |  |
Series E notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |  |
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 | 2,693,000 |  |  | 2,660,000 |  |  |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |  |
Hollywood Media Portfolio | $ | 1,100,000 |  |  | $ | 1,100,000 |  |  | LIBOR + 0.99% |  | 8/9/2026 | (7) |
Acquired Hollywood Media Portfolio debt | (209,814) |  |  | (209,814) |  |  | LIBOR + 1.55% |  | 8/9/2026 | (7) |
Hollywood Media Portfolio, net(8)(9)(10) | 890,186 |  |  | 890,186 |  |  |  |  |  |  |
One Westside and Westside Two(11) | 324,632 |  |  | 316,602 |  |  | SOFR + 1.60% |  | 12/18/2024 | (12) |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |  |
1918 Eighth(13) | 314,300 |  |  | 314,300 |  |  | SOFR + 1.40% |  | 12/18/2025 |  |
Hill7(14) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |  |
Quixote | — |  |  | 160,000 |  |  | 5.00% |  | 12/31/2023 | (15) |
Total secured debt | 1,798,118 |  |  | 1,950,088 |  |  |  |  |  |  |
Total unsecured and secured debt | 4,491,118 |  |  | 4,610,088 |  |  |  |  |  |  |
Unamortized deferred financing costs/loan discounts(16) | (18,011) |  |  | (24,226) |  |  |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 4,473,107 |  |  | $ | 4,585,862 |  |  |  |  |  |  |
JOINT VENTURE PARTNER DEBT(17) | $ | 66,136 |  |  | $ | 66,136 |  |  | 4.50% |  | 10/9/2032 | (18) |
_________________ 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 June 30, 2023, which may be different than the interest rates as of December 31, 2022 for corresponding indebtedness. 2.Maturity dates include the effect of extension options. 3.The annual facility fee rate ranges from 0.15% to 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 June 30, 2023, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.30%. 4.The Company has a total capacity of $1.0 billion available under its unsecured revolving credit facility, up to $250.0 million of which can be used for borrowings in pounds sterling or Canadian dollars. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement 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. 5.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 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.Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. 8.The Company purchased bonds comprising the loan in the amount of $209.8 million. 9.The floating interest rate on the full principal amount has been capped at 3.50% through the use of an interest rate cap. The interest rate cap matures in August 2023, at which time the floating interest rate on $351.2 million of principal will become effectively fixed at 3.31% through the use of an interest rate swap. 10.In July 2023, the Company modified the existing loan agreement secured by its Hollywood Media Portfolio property, whereby the LIBOR-based floating interest rate was replaced with a term SOFR-based floating interest rate. The amended interest rate on the loan secured by the Hollywood Media Portfolio is SOFR + 1.10%. The Company applied the relief provisions of ASC 848 and accounted for this modification as a continuation of the existing loan agreement. The interest rate on the acquired Hollywood Media Portfolio debt was also amended and the new interest rate is SOFR + 1.66%. 11.The Company has the ability to draw up to $414.6 million under the construction loan, which is secured by the One Westside and Westside Two properties and includes a completion guarantee provided by the Company. The likelihood of loss relating to the completion guarantee is remote as of June 30, 2023. 12.Includes the option to extend the initial maturity date of December 18, 2023 twice for an additional six-month term each. 13.This loan is interest-only through its term. The floating interest rate on $141.4 million of principal has been capped at 5.00% through the use of an interest rate cap. The floating interest rate on the remaining $172.9 million of principal has been effectively fixed at 3.75% through the use of an interest rate swap. 14.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. 15.The note was settled in April 2023 for consideration of $150.0 million, a $10.0 million discount on the note’s principal balance. 16.Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See 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.
Schedule of Maturities of Long-Term Debt | 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 June 30, 2023:
Year |  | Unsecured and Secured Debt |  | Joint Venture Partner Debt
Remaining 2023 |  | $ | 50,000 |  |  | $ | — |
2024 |  | 324,632 |  |  | — |
2025 |  | 741,300 |  |  | — |
2026 |  | 1,568,186 |  |  | — |
2027 |  | 456,000 |  |  | — |
Thereafter |  | 1,351,000 |  |  | 66,136 |
TOTAL |  | $ | 4,491,118 |  |  | $ | 66,136 |
Summary of Existing Covenants and their Covenant Levels | The following table summarizes existing covenants and their covenant levels as of June 30, 2023 related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level |  | Actual Performance
Total liabilities to total asset value |  | ≤ 60% |  | 47.5%
Unsecured indebtedness to unencumbered asset value |  | ≤ 60% |  | 53.7%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 2.4x
Secured indebtedness to total asset value |  | ≤ 45% |  | 20.0%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 2.6x
The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of June 30, 2023:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Debt to total assets |  | ≤ 60% |  | 45.7%
Total unencumbered assets to unsecured debt |  | ≥ 150% |  | 218.4%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x |  | 2.5x
Secured debt to total assets |  | ≤ 45% |  | 19.1%
_________________ 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.
Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Gross interest expense(1) | $ | 54,425 |  |  | $ | 34,012 |  |  | $ | 107,723 |  |  | $ | 68,160 |
Capitalized interest | (7,311) |  |  | (3,592) |  |  | (14,173) |  |  | (6,877) |
Non-cash interest expense | 7,534 |  |  | 3,299 |  |  | 14,905 |  |  | 3,272 |
INTEREST EXPENSE | $ | 54,648 |  |  | $ | 33,719 |  |  | $ | 108,455 |  |  | $ | 64,555 |
_________________ 1.Includes interest on the Company’s debt and hedging activities.

X
- References No definition available. + Details
Name: | hpp_ScheduleOfInterestCostsIncurredTableTextBlock
Namespace Prefix: | hpp_
Data Type: | dtr-types1:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 69B -Publisher FASB -URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 470 -SubTopic 20 -Name Accounting Standards Codification -Section 55 -Paragraph 69E -Publisher FASB -URI https://asc.fasb.org//1943274/2147481568/470-20-55-69E Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482925/835-30-45-2 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 45 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482925/835-30-45-1A Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-3 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480566/210-10-S99-1 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 55 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482949/835-30-55-8 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480848/942-470-50-3 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-8 Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-6 Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481112/505-10-50-7 + Details
Name: | us-gaap_ScheduleOfDebtInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturity and sinking fund requirement for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 1 -SubTopic 10 -Topic 470 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481544/470-10-50-1 + Details
Name: | us-gaap_ScheduleOfMaturitiesOfLongTermDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration