XML 57 R44.htm IDEA: XBRL DOCUMENT
v3.24.3

Debt (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2024
Debt Disclosure [Abstract] |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness:
| September 30, 2024 |  | December 31, 2023 |  | Interest Rate(1) |  | Contractual Maturity Date(2) |  |
UNSECURED AND SECURED DEBT |  |  |  |  |  |  |  |  |
Unsecured debt |  |  |  |  |  |  |  |  |
Unsecured revolving credit facility(3)(4) | $ | 295,000 |  |  | $ | 192,000 |  |  | SOFR + 1.15% to 1.60% |  | 12/21/2026 | (5) |
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 |  |
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 | 2,410,000 |  |  | 2,307,000 |  |  |  |  |  |  |
Secured debt |  |  |  |  |  |  |  |  |
Hollywood Media Portfolio | $ | 1,100,000 |  |  | $ | 1,100,000 |  |  | SOFR + 1.10% |  | 8/9/2026 | (7) |
Acquired Hollywood Media Portfolio debt | (30,233) |  |  | (30,233) |  |  | SOFR + 2.11% |  | 8/9/2026 | (7) |
Hollywood Media Portfolio, net(8)(9) | 1,069,767 |  |  | 1,069,767 |  |  |  |  |  |  |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |  |
1918 Eighth(10) | 314,300 |  |  | 314,300 |  |  | SOFR + 1.40% |  | 12/18/2025 |  |
Hill7(11) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2028 |  |
Sunset Glenoaks Studios(12)(13) | 88,583 |  |  | — |  |  | SOFR + 3.10% |  | 1/9/2027 | (14) |
Total secured debt | 1,741,650 |  |  | 1,653,067 |  |  |  |  |  |  |
Total unsecured and secured debt | 4,151,650 |  |  | 3,960,067 |  |  |  |  |  |  |
Unamortized deferred financing costs/loan discounts(15) | (11,948) |  |  | (14,753) |  |  |  |  |  |  |
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 4,139,702 |  |  | $ | 3,945,314 |  |  |  |  |  |  |
JOINT VENTURE PARTNER DEBT(16) | $ | 66,136 |  |  | $ | 66,136 |  |  | 4.50% |  | 10/9/2032 | (17) |
_________________ 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 September 30, 2024, which may be different than the interest rates as of December 31, 2023 for corresponding indebtedness. 2.Maturity dates include the effect of extension options. The extension options are subject to certain criteria and/or lender discretion. 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 September 30, 2024, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.35%. 4.The Company has a total capacity of $900.0 million available under its unsecured revolving credit facility, up to $225.0 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 Fourth 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. The first and second extension options were executed on of August 9, 2023 and June 13, 2024, respectively. 8.The Company purchased bonds comprising the loan in the amount of $30.2 million. 9.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 $180.0 million of principal is effectively fixed at 4.13% through the use of an interest rate swap. 10.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. 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.This loan has a total capacity of $100.6 million and an initial interest rate of SOFR + 3.10% per annum until the construction at Sunset Glenoaks Studios is complete and certain performance targets have been met, at which time the effective interest rate will decrease to SOFR + 2.50%. This loan is interest-only through its term. The floating interest rate on the full principal amount has been effectively capped at 4.50% through the use of an interest rate cap. The Company has provided various guarantees for this loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. The Company believes likelihood of loss relating to the completion guarantee is remote as of September 30, 2024. 13.Sunset Glenoaks Studios was consolidated as of September 30, 2024 and unconsolidated as of December 31, 2023. Therefore, the December 31, 2023 balance is reported at $0. 14.Includes the option to extend the initial maturity date of January 9, 2025 twice for an additional one-year term each. 15.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 8 for details. 16.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. 17.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 September 30, 2024:
Year |  | Unsecured and Secured Debt |  | Joint Venture Partner Debt
Remaining 2024 |  | $ | — |  |  | $ | — |
2025 |  | 741,300 |  |  | — |
2026 |  | 1,514,767 |  |  | — |
2027 |  | 544,583 |  |  | — |
2028 |  | 451,000 |  |  | — |
Thereafter |  | 900,000 |  |  | 66,136 |
TOTAL |  | $ | 4,151,650 |  |  | $ | 66,136 |
Schedule of Existing Covenants and their Covenant Levels | The following table summarizes existing covenants and their covenant levels as of September 30, 2024 related to our unsecured revolving credit facility and term loans:
Covenant Ratio |  | Covenant Level |  | Actual Performance
Total liabilities to total asset value(1) |  | ≤ 65% |  | 48.7%
Unsecured indebtedness to unencumbered asset value(1) |  | ≤ 65% |  | 45.3%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 1.7x
Secured indebtedness to total asset value |  | ≤ 45% |  | 21.2%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 2.3x
_________________ 1.Based on the provisions of the fourth quarter 2023 amendment to the unsecured revolving credit facility, the total leverage and the unsecured leverage thresholds have been extended from 60% to 65% through December 31, 2024 (or until such time as the private placement covenant calculations are amended to reflect the recent adjustments to the credit facility covenants, if sooner). The following table summarizes existing covenants and their covenant levels as of September 30, 2024 related to our private placement notes:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Total liabilities to total asset value |  | ≤ 60% |  | 52.7%
Unsecured indebtedness to unencumbered asset value(2) |  | ≤ 65% |  | 55.8%
Adjusted EBITDA to fixed charges |  | ≥ 1.5x |  | 1.7x
Secured indebtedness to total asset value |  | ≤ 45% |  | 22.9%
Unencumbered NOI to unsecured interest expense |  | ≥ 2.0x |  | 2.3x
_________________ 1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the Series B, Series C and Series D notes. 2.Based on the provisions of the fourth quarter 2023 amendment to the unsecured revolving credit facility, the total leverage and the unsecured leverage thresholds have been extended from 60% to 65% through December 31, 2024 (or until such time as the private placement covenant calculations are amended to reflect the recent adjustments to the credit facility covenants, if sooner). The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of September 30, 2024:
Covenant Ratio(1) |  | Covenant Level |  | Actual Performance
Debt to total assets |  | ≤ 60% |  | 44.0%
Total unencumbered assets to unsecured debt |  | ≥ 150% |  | 263.2%
Consolidated income available for debt service to annual debt service charge |  | ≥ 1.5x |  | 1.7x
Secured debt to total assets |  | ≤ 45% |  | 19.0%
_________________ 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.
Schedule of 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 September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Gross interest expense(1) | $ | 53,539 |  |  | $ | 57,702 |  |  | $ | 157,272 |  |  | $ | 165,425 |
Capitalized interest | (10,521) |  |  | (8,606) |  |  | (29,915) |  |  | (22,779) |
Non-cash interest expense(2) | 1,987 |  |  | 4,485 |  |  | 5,896 |  |  | 19,390 |
INTEREST EXPENSE | $ | 45,005 |  |  | $ | 53,581 |  |  | $ | 133,253 |  |  | $ | 162,036 |
_________________ 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.

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://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(22)) -SubTopic 10 -Topic 210 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: 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 3: 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 4: 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 5: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 835 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482925/835-30-45-2 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 942 -SubTopic 470 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477734/942-470-50-3 Reference 8: 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 9: 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 10: 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