Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 03, 2023 | Jun. 30, 2022 | |
Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-34789 | ||
Entity Registrant Name | Hudson Pacific Properties, Inc. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 27-1430478 | ||
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90025 | ||
City Area Code | 310 | ||
Local Phone Number | 445-5700 | ||
Title of each class | Common Stock, $0.01 par value | ||
Trading Symbol(s) | HPP | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,070 | ||
Entity Common Stock, Shares Outstanding | 141,063,390 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2023 Annual Meeting of Stockholders to be held May 25, 2023 are incorporated by reference in Part III of this Annual Report on Form 10-K. The proxy statement will be filed by the registrant with the United States Securities and Exchange Commission, or the SEC, not later than 120 days after the end of the registrant’s fiscal year. | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001482512 | ||
Hudson Pacific Partners, L.P. | |||
Entity Information | |||
Entity File Number | 333-202799-01 | ||
Entity Registrant Name | Hudson Pacific Properties, L.P. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 80-0579682 | ||
Title of each class | 4.750% Series C Cumulative Redeemable Preferred Stock | ||
Trading Symbol(s) | HPP Pr C | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Central Index Key | 0001496264 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Los Angeles, California |
Hudson Pacific Partners, L.P. | |
Auditor | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 42 |
Auditor Location | Los Angeles, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Investment in real estate, at cost | $ 8,716,572,000 | $ 8,361,477,000 |
Accumulated depreciation and amortization | (1,541,271,000) | (1,283,774,000) |
Investment in real estate, net | 7,175,301,000 | 7,077,703,000 |
Non-real estate property, plant and equipment, net | 130,289,000 | 58,469,000 |
Cash and cash equivalents | 255,761,000 | 96,555,000 |
Restricted cash | 29,970,000 | 100,321,000 |
Accounts receivable, net | 16,820,000 | 25,339,000 |
Straight-line rent receivables, net | 279,910,000 | 240,306,000 |
Deferred leasing costs and intangible assets, net | 393,842,000 | 341,444,000 |
U.S. Government securities | 0 | 129,321,000 |
Operating lease right-of-use assets | 401,051,000 | 287,041,000 |
Prepaid expenses and other assets, net | 98,837,000 | 119,000,000 |
Investment in unconsolidated real estate entities | 180,572,000 | 154,731,000 |
Goodwill | 263,549,000 | 109,439,000 |
Assets associated with real estate held for sale | 93,238,000 | 250,520,000 |
TOTAL ASSETS | 9,319,140,000 | 8,990,189,000 |
Liabilities | ||
Accounts payable, accrued liabilities and other | 264,098,000 | 300,959,000 |
Operating lease liabilities | 399,801,000 | 293,596,000 |
Intangible liabilities, net | 34,091,000 | 42,290,000 |
Security deposits, prepaid rent and other | 83,797,000 | 84,939,000 |
Liabilities associated with real estate held for sale | 665,000 | 3,898,000 |
Total liabilities | 5,434,450,000 | 4,653,933,000 |
Commitments and contingencies (Note 19) | ||
Redeemable preferred units of the operating partnership | 9,815,000 | 9,815,000 |
Redeemable non-controlling interest in consolidated real estate entities | 125,044,000 | 129,449,000 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized, 17,000,000 shares outstanding at December 31, 2022 and 2021 | 425,000,000 | 425,000,000 |
Common stock, $0.01 par value, 481,600,000 authorized, 141,054,478 and 151,124,543 shares outstanding at December 31, 2022 and 2021, respectively | 1,409,000 | 1,511,000 |
Additional paid-in capital | 2,889,967,000 | 3,317,072,000 |
Accumulated other comprehensive loss | (11,272,000) | (1,761,000) |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,305,104,000 | 3,741,822,000 |
Total equity | 3,749,831,000 | 4,196,992,000 |
Total Liabilities and Equity/Capital | 9,319,140,000 | 8,990,189,000 |
Non-controlling interest—members in consolidated real estate entities | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 377,756,000 | 402,971,000 |
Non-controlling interest—units in the operating partnership | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 66,971,000 | 52,199,000 |
Unsecured and secured debt, net | ||
Liabilities | ||
Notes payable, net | 4,585,862,000 | 3,733,903,000 |
In-substance defeased debt | ||
Liabilities | ||
Notes payable, net | 0 | 128,212,000 |
Joint venture partner debt | ||
Liabilities | ||
Notes payable, net | $ 66,136,000 | $ 66,136,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock: | ||
Interest rate of preferred stock | 6.25% | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred stock, authorized (in shares) | 18,400,000 | 18,400,000 |
Preferred Stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 481,600,000 | 481,600,000 |
Common stock/units, outstanding (in shares) | 141,054,478 | 151,124,543 |
Series C Cumulative Redeemable Preferred Stock | ||
Common Stock: | ||
Interest rate of preferred stock | 4.75% | 4.75% |
Preferred stock, par value (in dollars per share) | $ 0.01 | |
Liquidation preference (in dollars per share) | $ 25 | |
Preferred stock, authorized (in shares) | 17,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Revenues | $ 1,026,224 | $ 896,835 | $ 804,965 |
OPERATING EXPENSES | |||
Operating expenses | 413,818 | 335,847 | 299,779 |
General and administrative | 79,501 | 71,346 | 77,882 |
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Total operating expenses | 866,538 | 750,807 | 677,343 |
OTHER INCOME (EXPENSE) | |||
Income from unconsolidated real estate entities | 943 | 1,822 | 736 |
Fee income | 7,972 | 3,221 | 2,815 |
Interest expense | (149,901) | (121,939) | (113,823) |
Interest income | 2,340 | 3,794 | 4,089 |
Management services reimbursement income—unconsolidated real estate entities | 4,163 | 1,132 | 0 |
Management services expense—unconsolidated real estate entities | (4,163) | (1,132) | 0 |
Transaction-related expenses | (14,356) | (8,911) | (440) |
Loss on sale of real estate | (2,164) | 0 | 0 |
Unrealized (loss) gain on non-real estate investments | (1,440) | 16,571 | (2,463) |
Impairment loss | (28,548) | (2,762) | 0 |
Loss on extinguishment of debt | 0 | (6,259) | (2,654) |
Other income (expense) | 8,951 | (2,553) | 548 |
Total other expenses | (176,203) | (117,016) | (111,192) |
Net (loss) income | (16,517) | 29,012 | 16,430 |
Net income attributable to participating securities | (1,194) | (1,090) | (1,041) |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,418) | (21,806) | (18,955) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
Net loss (income) attributable to non-controlling interest in the operating partnership | 709 | (61) | (10) |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (56,499) | $ 6,064 | $ 383 |
BASIC AND DILUTED PER SHARE AMOUNTS | |||
Net (loss) income attributable to common stockholders—basic (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Net (loss) income attributable to common stockholders—diluted (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Weighted average shares of common stock outstanding—basic (in shares) | 143,732,433 | 151,618,282 | 153,126,027 |
Weighted average shares of common stock outstanding—diluted (in shares) | 143,732,433 | 151,943,360 | 153,169,025 |
Series A units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | $ (612) | $ (612) | $ (612) |
Series C units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | (20,431) | (2,281) | 0 |
Office | |||
REVENUES | |||
Rental | 834,408 | 782,736 | 721,286 |
Service and other revenues | 18,292 | 12,634 | 14,633 |
Revenues | 852,700 | 795,370 | 735,919 |
OPERATING EXPENSES | |||
Operating expenses | 308,668 | 280,334 | 262,199 |
Studio | |||
REVENUES | |||
Rental | 59,672 | 49,985 | 48,756 |
Service and other revenues | 113,852 | 51,480 | 20,290 |
Revenues | 173,524 | 101,465 | 69,046 |
OPERATING EXPENSES | |||
Operating expenses | $ 105,150 | $ 55,513 | $ 37,580 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income | $ (16,517) | $ 29,012 | $ 16,430 |
Currency translation adjustments | (12,375) | (1,064) | 1,394 |
Net unrealized gains (losses) on derivative instruments: | |||
Unrealized gains (losses) | 621 | 171 | (14,471) |
Reclassification adjustment for realized losses | 2,097 | 7,360 | 5,444 |
Total net gains (losses) on derivative instruments: | 2,718 | 7,531 | (9,027) |
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Comprehensive (loss) income | (26,174) | 35,479 | 8,797 |
Comprehensive income attributable to participating securities | (1,194) | (1,090) | (1,041) |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,442) | (21,806) | (18,955) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
Comprehensive loss (income) attributable to non-controlling interest in the operating partnership | 879 | (156) | 51 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | (66,010) | 12,436 | (7,189) |
Series A units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | (612) | (612) | (612) |
Series C units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | $ (20,431) | $ (2,281) | $ 0 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Series C Preferred Stock | Series C Cumulative Redeemable Preferred Stock | Series C Cumulative Redeemable Preferred Stock Series C Preferred Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Series C Preferred Stock | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest - Units in the Operating Partnership | Non-controlling Interest - Members in Consolidated Real Estate Entities |
Beginning balance at Dec. 31, 2019 | $ 3,709,362 | $ 0 | $ 1,546 | $ 3,415,808 | $ 0 | $ (561) | $ 23,082 | $ 269,487 | |||
Beginning balance (in shares) at Dec. 31, 2019 | 154,691,052 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Contributions | 138,124 | 138,124 | |||||||||
Sale of non-controlling interest | 367,142 | 300,104 | 67,038 | ||||||||
Distributions | (26,595) | (26,595) | |||||||||
Transaction costs | (16,047) | (16,047) | |||||||||
Issuance of unrestricted stock | 0 | $ 5 | (5) | ||||||||
Issuance of unrestricted stock (in shares) | 420,970 | ||||||||||
Shares withheld to satisfy tax withholding obligations | (7,582) | $ (2) | (7,580) | ||||||||
Shares withheld to satisfy tax withholding (in shares) | (225,314) | ||||||||||
Repurchase of common stock | $ (80,213) | $ (35) | (80,178) | ||||||||
Repurchase of common stock (in shares) | (3,500,000) | (3,485,343) | |||||||||
Declared dividend | $ (154,996) | (151,772) | (1,424) | (1,800) | |||||||
Amortization of stock-based compensation | 26,029 | 9,428 | 16,601 | ||||||||
Net income (loss) | 20,389 | 1,424 | 10 | 18,955 | |||||||
Other comprehensive income (loss) | (7,633) | (7,572) | (61) | ||||||||
Ending balance at Dec. 31, 2020 | 3,967,980 | 0 | $ 1,514 | 3,469,758 | 0 | (8,133) | 37,832 | 467,009 | |||
Ending balance (in shares) at Dec. 31, 2020 | 151,401,365 | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Contributions | 24,718 | 24,718 | |||||||||
Distributions | (110,562) | (110,562) | |||||||||
Proceeds from sale of stock, net of underwriters discount and transaction costs | 44,820 | $ 413,007 | $ 425,000 | $ 15 | 44,805 | $ (11,993) | |||||
Proceeds from sale of stock, net of underwriters’ discount and transaction costs (in shares) | 1,526,163 | ||||||||||
Transaction costs | (243) | (243) | |||||||||
Issuance of unrestricted stock | 0 | $ 2 | (2) | ||||||||
Issuance of unrestricted stock (in shares) | 222,781 | ||||||||||
Shares withheld to satisfy tax withholding obligations | (2,206) | $ (1) | (2,205) | ||||||||
Shares withheld to satisfy tax withholding (in shares) | (90,843) | ||||||||||
Repurchase of common stock | $ (46,137) | $ (19) | (46,118) | ||||||||
Repurchase of common stock (in shares) | (1,900,000) | (1,934,923) | |||||||||
Declared dividend | $ (156,841) | (2,281) | (145,158) | (7,154) | (2,248) | ||||||
Amortization of stock-based compensation | 24,687 | 8,228 | 16,459 | ||||||||
Net income (loss) | 31,302 | 2,281 | 7,154 | 61 | 21,806 | ||||||
Other comprehensive income (loss) | 6,467 | 6,372 | 95 | ||||||||
Ending balance at Dec. 31, 2021 | $ 4,196,992 | 425,000 | $ 1,511 | 3,317,072 | 0 | (1,761) | 52,199 | 402,971 | |||
Ending balance (in shares) at Dec. 31, 2021 | 151,124,543 | 151,124,543 | |||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Contributions | $ 23,689 | 23,689 | |||||||||
Distributions | (72,346) | (72,346) | |||||||||
Transaction costs | (573) | (573) | |||||||||
Issuance of unrestricted stock | 0 | $ 2 | (2) | ||||||||
Issuance of unrestricted stock (in shares) | 234,741 | ||||||||||
Shares withheld to satisfy tax withholding obligations | (695) | $ (1) | (694) | ||||||||
Shares withheld to satisfy tax withholding (in shares) | (70,722) | ||||||||||
Repurchase of common stock | $ (37,206) | $ (21) | (37,185) | ||||||||
Repurchase of common stock (in shares) | (2,100,000) | (2,105,359) | |||||||||
Accelerated repurchase of common stock | $ (200,000) | $ (82) | (199,918) | ||||||||
Accelerated repurchase of common stock (in shares) | (8,128,725) | ||||||||||
Declared dividend | (165,858) | (20,431) | (198,016) | 55,305 | (2,716) | ||||||
Amortization of stock-based compensation | 27,650 | 9,283 | 18,367 | ||||||||
Net income (loss) | (12,165) | 20,431 | (55,305) | (709) | 23,418 | ||||||
Other comprehensive income (loss) | (9,657) | ||||||||||
Other comprehensive (loss) income | (9,657) | (9,511) | (170) | 24 | |||||||
Ending balance at Dec. 31, 2022 | $ 3,749,831 | $ 425,000 | $ 1,409 | $ 2,889,967 | $ 0 | $ (11,272) | $ 66,971 | $ 377,756 | |||
Ending balance (in shares) at Dec. 31, 2022 | 141,054,478 | 141,054,478 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (16,517) | $ 29,012 | $ 16,430 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Non-cash portion of interest expense | 13,894 | 10,463 | 6,885 |
Amortization of stock-based compensation | 24,296 | 21,163 | 22,723 |
Income from unconsolidated real estate entities | (943) | (1,822) | (736) |
Unrealized loss (gain) on non-real estate investments | 1,440 | (16,571) | 2,463 |
Straight-line rents | (38,508) | (21,895) | (30,357) |
Straight-line rent expense | 3,198 | 1,421 | 1,462 |
Amortization of above- and below-market leases, net | (8,032) | (11,415) | (9,635) |
Amortization of above- and below-market ground lease, net | 2,731 | 2,367 | 2,352 |
Amortization of lease incentive costs | 1,545 | 1,885 | 1,915 |
Distribution of income from unconsolidated real estate entities | 1,243 | 1,916 | 0 |
Gain on derivative instruments | (8,740) | 0 | 0 |
Impairment loss | 28,548 | 2,762 | 0 |
Earnout liability fair value adjustment | 1,757 | 0 | 0 |
Loss on sale of real estate | 2,164 | 0 | 0 |
Gain from insurance proceeds | (1,167) | 0 | 0 |
Loss on extinguishment of debt | 0 | 6,259 | 2,654 |
Change in operating assets and liabilities: | |||
Accounts receivable | 16,150 | 3,523 | (9,098) |
Deferred leasing costs and lease intangibles | (33,940) | (19,831) | (13,276) |
Prepaid expenses and other assets | (2,240) | (32,669) | (9,117) |
Accounts payable, accrued liabilities and other | 11,718 | (38) | 11,693 |
Security deposits, prepaid rent and other | (2,315) | (5,281) | 5,992 |
Net cash provided by operating activities | 369,501 | 314,863 | 302,032 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of real estate | 137,709 | 0 | 0 |
Additions to investment property | (276,798) | (338,629) | (402,283) |
Property acquisitions | (96,459) | (118,907) | (593,945) |
Acquisitions of businesses | (199,098) | (209,854) | 0 |
Maturities of U.S. Government securities | 129,300 | 5,778 | 5,656 |
Contributions to non-real estate investments | (17,109) | (12,397) | (3,404) |
Distributions from non-real estate investments | 1,492 | 53 | 1,238 |
Proceeds from sale of non-real estate investment | 0 | 0 | 1,042 |
Distributions from unconsolidated real estate entities | 1,875 | 1,654 | 1,608 |
Contributions to unconsolidated real estate entities | (40,081) | (75,585) | (16,756) |
Additions to non-real estate property, plant and equipment | (20,209) | (6,321) | 0 |
Insurance proceeds for damaged property, plant and equipment | 1,284 | 0 | 0 |
Net cash used in investing activities | (378,094) | (754,208) | (1,006,844) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 1,197,556 | 1,450,500 | 1,736,914 |
Payments of unsecured and secured debt | (515,000) | (1,117,903) | (1,150,097) |
Payments of in-substance defeased debt | (128,212) | (3,494) | (3,323) |
Proceeds from sale of common stock | 0 | 44,974 | 0 |
Proceeds from issuance of Series C cumulative redeemable preferred stock | 0 | 413,007 | 0 |
Transaction costs | (573) | (397) | (16,047) |
Repurchases of common stock | (37,206) | (46,137) | (80,213) |
Accelerated share repurchase | (200,000) | 0 | 0 |
Dividends paid to common stock and unitholders | (145,427) | (154,560) | (154,996) |
Dividends paid to preferred stock and unitholders | (23,324) | (612) | (612) |
Contributions from redeemable non-controlling members in consolidated real estate entities | 575 | 4,493 | 7,201 |
Distributions to redeemable non-controlling members in consolidated real estate entities | (16) | (16) | (16) |
Contributions from non-controlling members in consolidated real estate entities | 23,689 | 24,718 | 138,124 |
Distributions to non-controlling members in consolidated real estate entities | (72,346) | (110,562) | (26,595) |
Proceeds from sale of non-controlling interest | 0 | 0 | 367,500 |
Payments to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Payment of loan costs | (1,573) | (15,124) | (14,164) |
Net cash provided by financing activities | 97,448 | 486,681 | 796,094 |
Net increase in cash and cash equivalents and restricted cash | 88,855 | 47,336 | 91,282 |
Cash and cash equivalents and restricted cash—beginning of period | 196,876 | 149,540 | 58,258 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ 285,731 | $ 196,876 | $ 149,540 |
CONSOLIDATED BALANCE SHEETS L.P
CONSOLIDATED BALANCE SHEETS L.P. - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Investment in real estate, at cost | $ 8,716,572,000 | $ 8,361,477,000 |
Accumulated depreciation and amortization | (1,541,271,000) | (1,283,774,000) |
Investment in real estate, net | 7,175,301,000 | 7,077,703,000 |
Non-real estate property, plant and equipment, net | 130,289,000 | 58,469,000 |
Cash and cash equivalents | 255,761,000 | 96,555,000 |
Restricted cash | 29,970,000 | 100,321,000 |
Accounts receivable, net | 16,820,000 | 25,339,000 |
Straight-line rent receivables, net | 279,910,000 | 240,306,000 |
Deferred leasing costs and intangible assets, net | 393,842,000 | 341,444,000 |
U.S. Government securities | 0 | 129,321,000 |
Operating lease right-of-use assets | 401,051,000 | 287,041,000 |
Prepaid expenses and other assets, net | 98,837,000 | 119,000,000 |
Investment in unconsolidated real estate entities | 180,572,000 | 154,731,000 |
Goodwill | 263,549,000 | 109,439,000 |
Assets associated with real estate held for sale | 93,238,000 | 250,520,000 |
TOTAL ASSETS | 9,319,140,000 | 8,990,189,000 |
Liabilities | ||
Accounts payable, accrued liabilities and other | 264,098,000 | 300,959,000 |
Operating lease liabilities | 399,801,000 | 293,596,000 |
Intangible liabilities, net | 34,091,000 | 42,290,000 |
Security deposits, prepaid rent and other | 83,797,000 | 84,939,000 |
Liabilities associated with real estate held for sale | 665,000 | 3,898,000 |
Total liabilities | 5,434,450,000 | 4,653,933,000 |
Commitments and contingencies (Note 19) | ||
Redeemable preferred units of the operating partnership | 9,815,000 | 9,815,000 |
Redeemable non-controlling interest in consolidated real estate entities | 125,044,000 | 129,449,000 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Accumulated other comprehensive loss | (11,272,000) | (1,761,000) |
Total Liabilities and Equity/Capital | 9,319,140,000 | 8,990,189,000 |
Unsecured and secured debt, net | ||
Liabilities | ||
Notes payable, net | 4,585,862,000 | 3,733,903,000 |
In-substance defeased debt | ||
Liabilities | ||
Notes payable, net | 0 | 128,212,000 |
Joint venture partner debt | ||
Liabilities | ||
Notes payable, net | 66,136,000 | 66,136,000 |
Hudson Pacific Partners, L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 8,716,572,000 | 8,361,477,000 |
Accumulated depreciation and amortization | (1,541,271,000) | (1,283,774,000) |
Investment in real estate, net | 7,175,301,000 | 7,077,703,000 |
Non-real estate property, plant and equipment, net | 130,289,000 | 58,469,000 |
Cash and cash equivalents | 255,761,000 | 96,555,000 |
Restricted cash | 29,970,000 | 100,321,000 |
Accounts receivable, net | 16,820,000 | 25,339,000 |
Straight-line rent receivables, net | 279,910,000 | 240,306,000 |
Deferred leasing costs and intangible assets, net | 393,842,000 | 341,444,000 |
U.S. Government securities | 0 | 129,321,000 |
Operating lease right-of-use assets | 401,051,000 | 287,041,000 |
Prepaid expenses and other assets, net | 98,837,000 | 119,000,000 |
Investment in unconsolidated real estate entities | 180,572,000 | 154,731,000 |
Goodwill | 263,549,000 | 109,439,000 |
Assets associated with real estate held for sale | 93,238,000 | 250,520,000 |
TOTAL ASSETS | 9,319,140,000 | 8,990,189,000 |
Liabilities | ||
Accounts payable, accrued liabilities and other | 264,098,000 | 300,959,000 |
Operating lease liabilities | 399,801,000 | 293,596,000 |
Intangible liabilities, net | 34,091,000 | 42,290,000 |
Security deposits, prepaid rent and other | 83,797,000 | 84,939,000 |
Liabilities associated with real estate held for sale | 665,000 | 3,898,000 |
Total liabilities | 5,434,450,000 | 4,653,933,000 |
Commitments and contingencies (Note 19) | ||
Redeemable preferred units of the operating partnership | 9,815,000 | 9,815,000 |
Redeemable non-controlling interest in consolidated real estate entities | 125,044,000 | 129,449,000 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
4.750% series C cumulative redeemable preferred units, $25.00 per unit liquidation preference, 17,000,000 units outstanding at December 31, 2022 and 2021 | 425,000,000 | 425,000,000 |
Common units, 143,246,320 and 152,967,441 outstanding at December 31, 2022 and 2021, respectively | 2,958,535,000 | 3,370,800,000 |
Accumulated other comprehensive loss | (11,460,000) | (1,779,000) |
Total Hudson Pacific Properties, L.P. partners' capital | 3,372,075,000 | 3,794,021,000 |
Non-controlling interest—members in consolidated entities | 377,756,000 | 402,971,000 |
TOTAL CAPITAL | 3,749,831,000 | 4,196,992,000 |
Total Liabilities and Equity/Capital | 9,319,140,000 | 8,990,189,000 |
Hudson Pacific Partners, L.P. | Unsecured and secured debt, net | ||
Liabilities | ||
Notes payable, net | 4,585,862,000 | 3,733,903,000 |
Hudson Pacific Partners, L.P. | In-substance defeased debt | ||
Liabilities | ||
Notes payable, net | 0 | 128,212,000 |
Hudson Pacific Partners, L.P. | Joint venture partner debt | ||
Liabilities | ||
Notes payable, net | $ 66,136,000 | $ 66,136,000 |
CONSOLIDATED BALANCE SHEETS L_2
CONSOLIDATED BALANCE SHEETS L.P. (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock: | ||
Interest rate of preferred stock | 6.25% | |
Liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred Stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
Common stock/units, outstanding (in shares) | 141,054,478 | 151,124,543 |
Series C Cumulative Redeemable Preferred Stock | ||
Common Stock: | ||
Interest rate of preferred stock | 4.75% | 4.75% |
Liquidation preference (in dollars per share) | $ 25 | |
Hudson Pacific Partners, L.P. | ||
Common Stock: | ||
Common stock/units, outstanding (in shares) | 143,246,320 | 152,967,441 |
Hudson Pacific Partners, L.P. | Series C Cumulative Redeemable Preferred Stock | ||
Common Stock: | ||
Interest rate of preferred stock | 4.75% | 4.75% |
Liquidation preference (in dollars per share) | $ 25 | $ 25 |
Preferred Stock, outstanding (in shares) | 17,000,000 | 17,000,000 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS L.P. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Revenues | $ 1,026,224 | $ 896,835 | $ 804,965 |
OPERATING EXPENSES | |||
Operating expenses | 413,818 | 335,847 | 299,779 |
General and administrative | 79,501 | 71,346 | 77,882 |
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Total operating expenses | 866,538 | 750,807 | 677,343 |
OTHER INCOME (EXPENSE) | |||
Income from unconsolidated real estate entities | 943 | 1,822 | 736 |
Fee income | 7,972 | 3,221 | 2,815 |
Interest expense | (149,901) | (121,939) | (113,823) |
Interest income | 2,340 | 3,794 | 4,089 |
Management services reimbursement income—unconsolidated real estate entities | 4,163 | 1,132 | 0 |
Management services expense—unconsolidated real estate entities | (4,163) | (1,132) | 0 |
Transaction-related expenses | (14,356) | (8,911) | (440) |
Unrealized (loss) gain on non-real estate investments | (1,440) | 16,571 | (2,463) |
Loss on sale of real estate | (2,164) | 0 | 0 |
Impairment loss | (28,548) | (2,762) | 0 |
Loss on extinguishment of debt | 0 | (6,259) | (2,654) |
Other income (expense) | 8,951 | (2,553) | 548 |
Total other expenses | (176,203) | (117,016) | (111,192) |
Net (loss) income | (16,517) | 29,012 | 16,430 |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,418) | (21,806) | (18,955) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
Net income attributable to participating securities | (1,194) | (1,090) | (1,041) |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | (56,499) | 6,064 | 383 |
Series A units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | (612) | (612) | (612) |
Series C units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | (20,431) | (2,281) | 0 |
Office | |||
REVENUES | |||
Rental | 834,408 | 782,736 | 721,286 |
Service and other revenues | 18,292 | 12,634 | 14,633 |
Revenues | 852,700 | 795,370 | 735,919 |
OPERATING EXPENSES | |||
Operating expenses | 308,668 | 280,334 | 262,199 |
Studio | |||
REVENUES | |||
Rental | 59,672 | 49,985 | 48,756 |
Service and other revenues | 113,852 | 51,480 | 20,290 |
Revenues | 173,524 | 101,465 | 69,046 |
OPERATING EXPENSES | |||
Operating expenses | $ 105,150 | $ 55,513 | $ 37,580 |
Hudson Pacific Partners, L.P. | |||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service And Other Revenue [Member] | Service And Other Revenue [Member] | Service And Other Revenue [Member] |
Cost, Product and Service [Extensible Enumeration] | Service And Other Revenue [Member] | Service And Other Revenue [Member] | Service And Other Revenue [Member] |
REVENUES | |||
Revenues | $ 1,026,224 | $ 896,835 | $ 804,965 |
OPERATING EXPENSES | |||
General and administrative | 79,501 | 71,346 | 77,882 |
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Total operating expenses | 866,538 | 750,807 | 677,343 |
OTHER INCOME (EXPENSE) | |||
Income from unconsolidated real estate entities | 943 | 1,822 | 736 |
Fee income | 7,972 | 3,221 | 2,815 |
Interest expense | (149,901) | (121,939) | (113,823) |
Interest income | 2,340 | 3,794 | 4,089 |
Management services reimbursement income—unconsolidated real estate entities | 4,163 | 1,132 | 0 |
Management services expense—unconsolidated real estate entities | (4,163) | (1,132) | 0 |
Transaction-related expenses | (14,356) | (8,911) | (440) |
Unrealized (loss) gain on non-real estate investments | (1,440) | 16,571 | (2,463) |
Loss on sale of real estate | (2,164) | 0 | 0 |
Impairment loss | (28,548) | (2,762) | 0 |
Loss on extinguishment of debt | 0 | (6,259) | (2,654) |
Other income (expense) | 8,951 | (2,553) | 548 |
Total other expenses | (176,203) | (117,016) | (111,192) |
Net (loss) income | (16,517) | 29,012 | 16,430 |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,418) | (21,806) | (18,955) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
Net (loss) income attributable to Hudson Pacific Properties, L.P. | (34,971) | 10,108 | 2,046 |
Net income attributable to participating securities | (1,194) | (1,090) | (1,041) |
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (57,208) | $ 6,125 | $ 393 |
BASIC AND DILUTED PER UNIT AMOUNTS | |||
Net (loss) income attributable to common unitholders—basic (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Net (loss) income attributable to common unitholders—diluted (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Weighted average shares of common units outstanding - basic (in shares) | 145,580,928 | 153,007,287 | 154,040,775 |
Weighted average shares of common units outstanding - diluted (in shares) | 145,580,928 | 153,332,365 | 154,083,773 |
Hudson Pacific Partners, L.P. | Series A units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | $ (612) | $ (612) | $ (612) |
Hudson Pacific Partners, L.P. | Series C units | |||
OTHER INCOME (EXPENSE) | |||
Net income attributable to preferred units | (20,431) | (2,281) | 0 |
Hudson Pacific Partners, L.P. | Office | |||
REVENUES | |||
Rental | 834,408 | 782,736 | 721,286 |
Service and other revenues | 18,292 | 12,634 | 14,633 |
Revenues | 852,700 | 795,370 | 735,919 |
OPERATING EXPENSES | |||
Operating expenses | 308,668 | 280,334 | 262,199 |
Hudson Pacific Partners, L.P. | Studio | |||
REVENUES | |||
Rental | 59,672 | 49,985 | 48,756 |
Service and other revenues | 113,852 | 51,480 | 20,290 |
Revenues | 173,524 | 101,465 | 69,046 |
OPERATING EXPENSES | |||
Operating expenses | $ 105,150 | $ 55,513 | $ 37,580 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) L.P. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net (loss) income | $ (16,517) | $ 29,012 | $ 16,430 |
Currency translation adjustments | (12,375) | (1,064) | 1,394 |
Net unrealized gains (losses) on derivative instruments: | |||
Unrealized gains (losses) | 621 | 171 | (14,471) |
Reclassification adjustment for realized losses | 2,097 | 7,360 | 5,444 |
Total net gains (losses) on derivative instruments: | 2,718 | 7,531 | (9,027) |
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Comprehensive (loss) income | (26,174) | 35,479 | 8,797 |
Comprehensive income attributable to participating securities | (1,194) | (1,090) | (1,041) |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,442) | (21,806) | (18,955) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | (66,010) | 12,436 | (7,189) |
Series A units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | (612) | (612) | (612) |
Series C units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | (20,431) | (2,281) | 0 |
Hudson Pacific Partners, L.P. | |||
Net (loss) income | (16,517) | 29,012 | 16,430 |
Currency translation adjustments | (12,375) | (1,064) | 1,394 |
Net unrealized gains (losses) on derivative instruments: | |||
Unrealized gains (losses) | 621 | 171 | (14,471) |
Reclassification adjustment for realized losses | 2,097 | 7,360 | 5,444 |
Total net gains (losses) on derivative instruments: | 2,718 | 7,531 | (9,027) |
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Comprehensive (loss) income | (26,174) | 35,479 | 8,797 |
Comprehensive income attributable to participating securities | (1,194) | (1,090) | (1,041) |
Net income attributable to non-controlling interest in consolidated real estate entities | (23,442) | (21,806) | (18,955) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 4,964 | 2,902 | 4,571 |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | (66,889) | 12,592 | (7,240) |
Hudson Pacific Partners, L.P. | Series A units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | (612) | (612) | (612) |
Hudson Pacific Partners, L.P. | Series C units | |||
Net unrealized gains (losses) on derivative instruments: | |||
Comprehensive income attributable to Series A preferred units | $ (20,431) | $ (2,281) | $ 0 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL L.P. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Partners' Capital | |||
Beginning balance (in shares) | 151,124,543 | ||
Contributions | $ 23,689 | $ 24,718 | $ 138,124 |
Sale of non-controlling interest | 367,142 | ||
Distributions | (72,346) | (110,562) | (26,595) |
Proceeds from sale of stock, net of underwriters discount and transaction costs | 44,820 | ||
Transaction costs | (573) | (243) | (16,047) |
Units withheld to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Repurchase of common units | $ (37,206) | $ (46,137) | $ (80,213) |
Repurchase of common units (in shares) | (2,100,000) | (1,900,000) | (3,500,000) |
Declared distributions | $ (165,858) | $ (156,841) | $ (154,996) |
Amortization of unit-based compensation | 27,650 | 24,687 | 26,029 |
Net income | (12,165) | 31,302 | 20,389 |
Other comprehensive income (loss) | (9,657) | $ 6,467 | (7,633) |
Other comprehensive (loss) income | $ (9,657) | ||
Ending balance (in shares) | 141,054,478 | 151,124,543 | |
Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | $ 4,196,992 | $ 3,967,980 | 3,709,362 |
Beginning balance (in shares) | 152,967,441 | ||
Contributions | $ 23,689 | 24,718 | 138,124 |
Sale of non-controlling interest | 367,142 | ||
Distributions | (72,346) | (110,562) | (26,595) |
Proceeds from sale of stock, net of underwriters discount and transaction costs | 44,820 | ||
Transaction costs | (573) | (243) | (16,047) |
Issuance of Series C cumulative redeemable preferred stock | 413,007 | ||
Units withheld to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Repurchase of common units | (237,206) | (46,137) | (80,213) |
Declared distributions | (165,858) | (156,841) | (154,996) |
Amortization of unit-based compensation | 27,650 | 24,687 | 26,029 |
Net income | (12,165) | 31,302 | 20,389 |
Other comprehensive income (loss) | (9,657) | 6,467 | (7,633) |
Other comprehensive (loss) income | (9,657) | ||
Ending balance | $ 3,749,831 | $ 4,196,992 | 3,967,980 |
Ending balance (in shares) | 143,246,320 | 152,967,441 | |
Preferred Units | Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | $ 425,000 | $ 0 | 0 |
Issuance of Series C cumulative redeemable preferred stock | 425,000 | ||
Declared distributions | (20,431) | (2,281) | |
Net income | 20,431 | 2,281 | |
Ending balance | 425,000 | 425,000 | 0 |
Total Partners’ Capital | Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | 3,794,021 | 3,500,971 | 3,439,875 |
Sale of non-controlling interest | 300,104 | ||
Proceeds from sale of stock, net of underwriters discount and transaction costs | 44,820 | ||
Transaction costs | (573) | (243) | (16,047) |
Issuance of Series C cumulative redeemable preferred stock | 413,007 | ||
Units withheld to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Repurchase of common units | (237,206) | (46,137) | (80,213) |
Declared distributions | (165,858) | (156,841) | (154,996) |
Amortization of unit-based compensation | 27,650 | 24,687 | 26,029 |
Net income | (35,583) | 9,496 | 1,434 |
Other comprehensive income (loss) | 6,467 | (7,633) | |
Other comprehensive (loss) income | (9,681) | ||
Ending balance | 3,372,075 | 3,794,021 | 3,500,971 |
Common Stock | Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | $ 3,370,800 | $ 3,509,217 | $ 3,440,488 |
Beginning balance (in shares) | 152,967,441 | 152,722,448 | 155,602,910 |
Sale of non-controlling interest | $ 300,104 | ||
Proceeds from sale of stock, net of underwriters discount and transaction costs | $ 44,820 | ||
Proceeds from sale of stock, net of underwriters’ discount and transaction costs (in shares) | 1,526,163 | ||
Transaction costs | $ (573) | $ (243) | $ (16,047) |
Issuance of unrestricted stock (in shares) | 583,685 | 744,596 | 830,195 |
Issuance of Series C cumulative redeemable preferred stock | $ (11,993) | ||
Units withheld to satisfy tax withholding obligations | $ (695) | $ (2,206) | $ (7,582) |
Units withheld to satisfy tax withholding (in shares) | (70,722) | (90,843) | (225,314) |
Repurchase of common units | $ (237,206) | $ (46,137) | $ (80,213) |
Repurchase of common units (in shares) | (10,234,084) | (1,934,923) | (3,485,343) |
Declared distributions | $ (145,427) | $ (154,560) | $ (154,996) |
Amortization of unit-based compensation | 27,650 | 24,687 | 26,029 |
Net income | (56,014) | 7,215 | 1,434 |
Ending balance | $ 2,958,535 | $ 3,370,800 | $ 3,509,217 |
Ending balance (in shares) | 143,246,320 | 152,967,441 | 152,722,448 |
Accumulated Other Comprehensive (Loss) Income | Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | $ (1,779) | $ (8,246) | $ (613) |
Other comprehensive income (loss) | 6,467 | (7,633) | |
Other comprehensive (loss) income | (9,681) | ||
Ending balance | (11,460) | (1,779) | (8,246) |
Non-controlling Interest— Members in Consolidated Real Estate Entities | Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital | |||
Beginning balance | 402,971 | 467,009 | 269,487 |
Contributions | 23,689 | 24,718 | 138,124 |
Sale of non-controlling interest | 67,038 | ||
Distributions | (72,346) | (110,562) | (26,595) |
Net income | 23,418 | 21,806 | 18,955 |
Other comprehensive (loss) income | 24 | ||
Ending balance | $ 377,756 | $ 402,971 | $ 467,009 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS L.P. - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (16,517) | $ 29,012 | $ 16,430 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Non-cash portion of interest expense | 13,894 | 10,463 | 6,885 |
Amortization of stock-based compensation | 24,296 | 21,163 | 22,723 |
Income from unconsolidated real estate entities | (943) | (1,822) | (736) |
Unrealized loss (gain) on non-real estate investments | 1,440 | (16,571) | 2,463 |
Straight-line rents | (38,508) | (21,895) | (30,357) |
Straight-line rent expense | 3,198 | 1,421 | 1,462 |
Amortization of above- and below-market leases, net | (8,032) | (11,415) | (9,635) |
Amortization of above- and below-market ground lease, net | 2,731 | 2,367 | 2,352 |
Amortization of lease incentive costs | 1,545 | 1,885 | 1,915 |
Distribution of income from unconsolidated real estate entities | 1,243 | 1,916 | 0 |
Gain on derivative instruments | (8,740) | 0 | 0 |
Impairment loss | 28,548 | 2,762 | 0 |
Earnout liability fair value adjustment | 1,757 | 0 | 0 |
Loss on sale of real estate | 2,164 | 0 | 0 |
Gain from insurance proceeds | (1,167) | 0 | 0 |
Loss on extinguishment of debt | 0 | 6,259 | 2,654 |
Change in operating assets and liabilities: | |||
Accounts receivable | 16,150 | 3,523 | (9,098) |
Deferred leasing costs and lease intangibles | (33,940) | (19,831) | (13,276) |
Prepaid expenses and other assets | (2,240) | (32,669) | (9,117) |
Accounts payable, accrued liabilities and other | 11,718 | (38) | 11,693 |
Security deposits, prepaid rent and other | (2,315) | (5,281) | 5,992 |
Net cash provided by operating activities | 369,501 | 314,863 | 302,032 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of real estate | 137,709 | 0 | 0 |
Additions to investment property | (276,798) | (338,629) | (402,283) |
Property acquisitions | (96,459) | (118,907) | (593,945) |
Acquisitions of businesses | (199,098) | (209,854) | 0 |
Maturities of U.S. Government securities | 129,300 | 5,778 | 5,656 |
Contributions to non-real estate investments | (17,109) | (12,397) | (3,404) |
Distributions from non-real estate investments | 1,492 | 53 | 1,238 |
Proceeds from sale of non-real estate investment | 0 | 0 | 1,042 |
Distributions from unconsolidated real estate entities | 1,875 | 1,654 | 1,608 |
Contributions to unconsolidated real estate entities | (40,081) | (75,585) | (16,756) |
Additions to non-real estate property, plant and equipment | (20,209) | (6,321) | 0 |
Insurance proceeds for damaged property, plant and equipment | 1,284 | 0 | 0 |
Net cash used in investing activities | (378,094) | (754,208) | (1,006,844) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 1,197,556 | 1,450,500 | 1,736,914 |
Payments of unsecured and secured debt | (515,000) | (1,117,903) | (1,150,097) |
Payments of in-substance defeased debt | (128,212) | (3,494) | (3,323) |
Proceeds from sale of common stock | 0 | 44,974 | 0 |
Proceeds from issuance of Series C cumulative redeemable preferred stock | 0 | 413,007 | 0 |
Transaction costs | (573) | (397) | (16,047) |
Repurchases of common stock | (37,206) | (46,137) | (80,213) |
Dividends paid to common stock and unitholders | (145,427) | (154,560) | (154,996) |
Dividends paid to preferred stock and unitholders | (23,324) | (612) | (612) |
Contributions from redeemable non-controlling members in consolidated real estate entities | 575 | 4,493 | 7,201 |
Distributions to redeemable non-controlling members in consolidated real estate entities | (16) | (16) | (16) |
Contributions from non-controlling members in consolidated real estate entities | 23,689 | 24,718 | 138,124 |
Distributions to non-controlling members in consolidated real estate entities | (72,346) | (110,562) | (26,595) |
Proceeds from sale of non-controlling interest | 0 | 0 | 367,500 |
Payments to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Payment of loan costs | (1,573) | (15,124) | (14,164) |
Net cash provided by financing activities | 97,448 | 486,681 | 796,094 |
Net increase in cash and cash equivalents and restricted cash | 88,855 | 47,336 | 91,282 |
Cash and cash equivalents and restricted cash—beginning of period | 196,876 | 149,540 | 58,258 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | 285,731 | 196,876 | 149,540 |
Hudson Pacific Partners, L.P. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | (16,517) | 29,012 | 16,430 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Non-cash portion of interest expense | 13,894 | 10,463 | 6,885 |
Amortization of stock-based compensation | 24,296 | 21,163 | 22,723 |
Income from unconsolidated real estate entities | (943) | (1,822) | (736) |
Unrealized loss (gain) on non-real estate investments | 1,440 | (16,571) | 2,463 |
Straight-line rents | (38,508) | (21,895) | (30,357) |
Straight-line rent expense | 3,198 | 1,421 | 1,462 |
Amortization of above- and below-market leases, net | (8,032) | (11,415) | (9,635) |
Amortization of above- and below-market ground lease, net | 2,731 | 2,367 | 2,352 |
Amortization of lease incentive costs | 1,545 | 1,885 | 1,915 |
Distribution of income from unconsolidated real estate entities | 1,243 | 1,916 | 0 |
Gain on derivative instruments | (8,740) | 0 | 0 |
Impairment loss | 28,548 | 2,762 | 0 |
Earnout liability fair value adjustment | 1,757 | 0 | 0 |
Loss on sale of real estate | 2,164 | 0 | 0 |
Gain from insurance proceeds | (1,167) | 0 | 0 |
Loss on extinguishment of debt | 0 | 6,259 | 2,654 |
Change in operating assets and liabilities: | |||
Accounts receivable | 16,150 | 3,523 | (9,098) |
Deferred leasing costs and lease intangibles | (33,940) | (19,831) | (13,276) |
Prepaid expenses and other assets | (2,240) | (32,669) | (9,117) |
Accounts payable, accrued liabilities and other | 11,718 | (38) | 11,693 |
Security deposits, prepaid rent and other | (2,315) | (5,281) | 5,992 |
Net cash provided by operating activities | 369,501 | 314,863 | 302,032 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds from sales of real estate | 137,709 | 0 | 0 |
Additions to investment property | (276,798) | (338,629) | (402,283) |
Property acquisitions | (96,459) | (118,907) | (593,945) |
Acquisitions of businesses | (199,098) | (209,854) | 0 |
Maturities of U.S. Government securities | 129,300 | 5,778 | 5,656 |
Contributions to non-real estate investments | (17,109) | (12,397) | (3,404) |
Distributions from non-real estate investments | 1,492 | 53 | 1,238 |
Proceeds from sale of non-real estate investment | 0 | 0 | 1,042 |
Distributions from unconsolidated real estate entities | 1,875 | 1,654 | 1,608 |
Contributions to unconsolidated real estate entities | (40,081) | (75,585) | (16,756) |
Additions to non-real estate property, plant and equipment | (20,209) | (6,321) | 0 |
Insurance proceeds for damaged property, plant and equipment | 1,284 | 0 | 0 |
Net cash used in investing activities | (378,094) | (754,208) | (1,006,844) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 1,197,556 | 1,450,500 | 1,736,914 |
Payments of unsecured and secured debt | (515,000) | (1,117,903) | (1,150,097) |
Payments of in-substance defeased debt | (128,212) | (3,494) | (3,323) |
Proceeds from sale of common stock | 0 | 44,974 | 0 |
Proceeds from issuance of Series C cumulative redeemable preferred stock | 0 | 413,007 | 0 |
Transaction costs | (573) | (397) | (16,047) |
Repurchases of common stock | (237,206) | (46,137) | (80,213) |
Dividends paid to common stock and unitholders | (145,427) | (154,560) | (154,996) |
Dividends paid to preferred stock and unitholders | (23,324) | (612) | (612) |
Contributions from redeemable non-controlling members in consolidated real estate entities | 575 | 4,493 | 7,201 |
Distributions to redeemable non-controlling members in consolidated real estate entities | (16) | (16) | (16) |
Contributions from non-controlling members in consolidated real estate entities | 23,689 | 24,718 | 138,124 |
Distributions to non-controlling members in consolidated real estate entities | (72,346) | (110,562) | (26,595) |
Proceeds from sale of non-controlling interest | 0 | 0 | 367,500 |
Payments to satisfy tax withholding obligations | (695) | (2,206) | (7,582) |
Payment of loan costs | (1,573) | (15,124) | (14,164) |
Net cash provided by financing activities | 97,448 | 486,681 | 796,094 |
Net increase in cash and cash equivalents and restricted cash | 88,855 | 47,336 | 91,282 |
Cash and cash equivalents and restricted cash—beginning of period | 196,876 | 149,540 | 58,258 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ 285,731 | $ 196,876 | $ 149,540 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. The Company’s portfolio consists of properties primarily located throughout the United States, Western Canada and Greater London, United Kingdom. The following table summarizes the Company’s portfolio as of December 31, 2022: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 14,338,510 Studio 4 1,291,260 Land 5 1,966,242 Total consolidated portfolio 60 17,596,012 Unconsolidated portfolio (1) Office (2) 1 1,511,723 Studio (3) 1 241,000 Land (4) 2 1,617,347 Total unconsolidated portfolio 4 3,370,070 TOTAL (5) 64 20,966,082 _________________ 1. The Company owns 20% of the unconsolidated joint venture entity that owns the Bentall Centre property, 50% of the unconsolidated joint venture entity that owns the Sunset Glenoaks Studios development and 35% of the unconsolidated joint venture entity that owns the future Sunset Waltham Cross Studios development. The square footage shown above represents 100% of the properties. See Notes 2 and 6 for details. 2. Includes Bentall Centre. 3. Includes Sunset Glenoaks Studios. 4. Includes land for the Burrard Exchange at Bentall Centre and Sunset Waltham Cross Studios. 5. Includes repositioning, redevelopment, development and held for sale properties. Concentrations As of December 31, 2022, the Company’s office properties were located in California, the Pacific Northwest and Western Canada. The Company’s owned studio properties were primarily located in the Hollywood submarket in Los Angeles, California. 70.7% of the square feet in the Company’s consolidated and unconsolidated portfolio is located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. A significant portion of the Company’s rental revenue is derived from tenants in the technology and media and entertainment industries. As of December 31, 2022, approximately 27.0% and 17.5% of consolidated and unconsolidated rentable square feet were related to the tenants in the technology and media and entertainment industries, respectively. As of December 31, 2022, the Company’s 15 largest tenants represented approximately 36.9% of consolidated and unconsolidated rentable square feet. No single tenant accounted for more than 10%. For the year ended December 31, 2022, Google, Inc. represented 12.6% of the Company’s revenue for the office segment and Netflix, Inc. represented 14.8% of the Company’s revenue for the studio segment. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any references to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2022, the Company has determined that its operating partnership and 19 joint ventures met the definition of a VIE. 13 of these joint ventures are consolidated and six are unconsolidated. Consolidated Joint Ventures As of December 31, 2022, the operating partnership has determined that 13 of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % Sunset Bronson Entertainment Properties, LLC Sunset Bronson Studios, ICON, CUE 51.0 % Sunset Gower Entertainment Properties, LLC Sunset Gower Studios 51.0 % Sunset 1440 North Gower Street, LLC Sunset Gower Studios 51.0 % Sunset Las Palmas Entertainment Properties, LLC Sunset Las Palmas Studios, Harlow 51.0 % Sunset Services Holdings, LLC None (1) 51.0 % Sunset Studios Holdings, LLC EPIC 51.0 % Hudson Media and Entertainment Management, LLC None (2) 51.0 % Hudson 6040 Sunset, LLC 6040 Sunset 51.0 % Hudson 1918 Eighth, L.P. 1918 Eighth 55.0 % __________________ 1. Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 2. Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). As of December 31, 2022 and 2021, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company. Unconsolidated Joint Ventures As of December 31, 2022, the Company has determined it is not the primary beneficiary of six of its joint ventures that are VIEs. Due to its significant influence over the unconsolidated entities, the Company accounts for them using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment in its unconsolidated joint ventures is reflected within investment in unconsolidated real estate entities on the Consolidated Balance Sheets. The Company’s share of net income or loss from the joint ventures is included within income from unconsolidated real estate entities on the Consolidated Statements of Operations. The Company uses the cumulative earnings approach for determining cash flow presentation of distributions from unconsolidated joint ventures. Under this approach, distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and those in excess of that amount are classified as cash inflows from investing activities. Refer to Note 6 for further details regarding our investments in unconsolidated joint ventures. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, the fair value measurement of contingent consideration, assets acquired and liabilities assumed in business combination transactions, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and the valuation of performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Acquisitions The Company evaluates each acquisition to determine if the integrated set of assets and activities acquired meets the definition of a business and needs to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair values of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers commissions, legal and other leasing-related costs. The fair value of debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Business Combinations From time to time, we may enter into business combinations. In accordance with ASC 805, Business Combinations , the Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. Acquired intangible assets are valued using different methods under the income approach, including the excess earnings method for customer relationships, the relief-from-royalty method for trade names, and the lost profits method for non-compete agreements. The fair values of acquired “above- and below-” market leases are estimated based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Acquired property, plant and equipment is valued using the cost approach, including consideration of reproduction or replacement costs, economic depreciation and obsolescence. We measure goodwill as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. Goodwill is assigned to each reporting unit that is expected to benefit from the synergies of the business combination. Acquisition-related expenses and transaction costs associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. The acquisition method of accounting requires us to make significant estimates and assumptions regarding the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. The Company estimates the fair value using observable inputs classified as Level 2 and unobservable inputs classified as Level 3 of the fair value hierarchy. Significant estimates and assumptions include subjective and/or complex judgments regarding items such as revenue growth rates, long-term growth rates, discount rates, customer retention rates, royalty rates, market rental rates and other factors, including estimating future cash flows that we expect to generate from the acquired assets. The acquisition method of accounting also requires us to refine these estimates over a measurement period not to exceed one year to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. If we are required to adjust provisional amounts that we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could have a material impact on our financial condition and results of operations. If the subsequent actual results and updated projections of the underlying business activity change compared with the assumptions and projections used to develop these values, we could record future impairment charges. Investment in Real Estate Properties Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity. Costs associated with development and redevelopment that are capitalized include interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. The Company recognized the following capitalized costs associated with development and redevelopment activities: Year Ended December 31, 2022 2021 2020 Capitalized personnel costs $ 18,098 $ 16,728 $ 15,843 Capitalized interest $ 18,031 $ 21,689 $ 19,509 Operating Properties The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated Useful Life (Years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant and leasehold improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of a lease, the amortization of intangible assets and liabilities is accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. Held for Sale The Company classifies properties as held for sale when certain criteria set forth in ASC 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale on the Consolidated Balance Sheets for all periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. The estimated fair value is generally based on a purchase and sale agreement, letter of intent, or a broker estimated value of the property. The Company will recognize an impairment loss on real estate assets held for sale when the carrying value is greater than the fair value, which is based on the estimated sales price of the property, which is classified within Level 2 of the fair value hierarchy. The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based Level 2 inputs. According to ASC 205, Presentation of Financial Statements , the Company does not present the operating results in net loss from discontinued operations for disposals if they do not represent a strategic shift in the Company’s business. There were no discontinued operations for the years ended December 31, 2022, 2021 and 2020. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties based on Level 1 or Level 2 inputs, less estimated costs to sell. Goodwill and Acquired Intangible Assets Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired and liabilities assumed. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit to which it is assigned, which can be an operating segment or one level below an operating segment. The Company has three operating segments: the management entity, Office and Studio, each of which is a reporting unit. The Studio reporting unit consists of the Zio Entertainment Network, LLC (“Zio”) and Star Waggons, LLC (“Star Waggons”) businesses acquired during the year ended December 31, 2021 and the Quixote Studios, LLC (“Quixote”) business acquired during the year ended December 31, 2022. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. If so, a quantitative assessment is performed, and to the extent the carrying value of the reporting unit exceeds its fair value, impairment is recognized for the excess up to the amount of goodwill assigned to the reporting unit. Alternatively, the Company may bypass a qualitative assessment and proceed directly to a quantitative assessment. A qualitative assessment considers various factors such as macroeconomic, industry and market conditions to the extent they affect the earnings performance of the reporting unit, changes in business strategy and/or management of the reporting unit, changes in composition or mix of revenues and/or cost structure of the reporting unit, financial performance and business prospects of the reporting unit, among other factors. In a quantitative assessment, significant judgment, assumptions and estimates are applied in determining the fair value of reporting units. The Company generally uses the income approach to estimate fair value by discounting the projected net cash flows of the reporting unit, and may corroborate with market-based data where available and appropriate. Projection of future cash flows is based upon various factors, including, but not limited to, our strategic plans in regard to our business and operations, internal forecasts, terminal year residual revenue multiples, operating profit margins, pricing of similar businesses and comparable transactions where applicable, and risk-adjusted discount rates to present value future cash flows. Given the level of sensitivity in the inputs, a change in the value of any one input, in isolation or in combination, could significantly affect the overall estimation of fair value of the reporting unit. As of December 31, 2022, December 31, 2021, and December 31, 2020, the carrying value of goodwill was $263.5 million, $109.4 million and $8.8 million, respectively. During the year ended December 31, 2022, the carrying value of goodwill increased by $154.1 million due to the acquisition of Quixote. During the year ended December 31, 2021, the carrying value of goodwill increased by $100.6 million due to the acquisitions of Zio and Star Waggons. No impairment indicators have been identified during the years ended December 31, 2022, 2021 and 2020. Intangible assets with finite lives are amortized over their estimated useful lives using the straight-line method, which reflects the pattern in which the assets are consumed. The estimated useful lives for acquired intangible assets range from five Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2022 2021 2020 BEGINNING OF THE PERIOD Cash and cash equivalents $ 96,555 $ 113,686 $ 46,224 Restricted cash 100,321 35,854 12,034 TOTAL $ 196,876 $ 149,540 $ 58,258 END OF THE PERIOD Cash and cash equivalents $ 255,761 $ 96,555 $ 113,686 Restricted cash 29,970 100,321 35,854 TOTAL $ 285,731 $ 196,876 $ 149,540 Receivables The Company accounts for receivables related to rental revenues according to ASC 842, Leases (“ASC 842”). The guidance requires the Company to assess, at lease commencement and subsequently, collectability of future lease payments from its tenants. If the Company determines collectability is not probable, it recognizes an adjustment to lower income from rentals. For amounts deemed probable of collection, the Company may also record an allowance under other authoritative GAAP based on the evaluation of individual receivables, including specific credit enhancements and other relevant factors. Accounts Receivable, net As of December 31, 2022, accounts receivable was $16.9 million and there was a $0.1 million allowance for doubtful accounts. As of December 31, 2021, accounts receivable was $25.5 million and there was $0.2 million allowance for doubtful accounts. Straight-line Rent Receivables, net As of December 31, 2022, straight-line rent receivables was $279.9 million and there was a no allowance for doubtful accounts. As of December 31, 2021, straight-line rent receivables was $240.3 million and there was no allowance for doubtful accounts. U.S. Government Securities As of December 31, 2021, the Company held U.S. Government securities related to assumed debt held by a trust subsidiary. These securities were considered held to maturity investments and were carried at amortized cost on the Consolidated Balance Sheets. The Company had both the intent and ability to hold to maturity. The remaining securities matured during the year ended December 31, 2022, resulting in a balance of $0 as of December 31, 2022, as compared to a balance of $129.3 million as of December 31, 2021. Prepaid Expenses and Other Assets, net The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2022 December 31, 2021 Non-real estate investments $ 47,329 $ 31,447 Interest rate derivative assets 9,292 368 Prepaid insurance 6,530 5,442 Deferred financing costs, net 5,824 7,750 Inventory 4,914 1,578 Prepaid property tax 2,041 2,192 Stock purchase warrant 95 1,664 Deposits and pre-development costs for future acquisitions — 47,605 Other 22,812 20,954 PREPAID EXPENSES AND OTHER ASSETS, NET $ 98,837 $ 119,000 Non-Real Estate Investments The Company measures its investments in common stock and convertible preferred stock at fair value based on Level 1 and Level 2 inputs, respectively. The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value (“NAV”) practical expedient and uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value of the investment. Changes in the fair value of these non-real estate investments are included in unrealized (loss) gain on non-real estate investments on the Consolidated Statements of Operations. The Company recognized a net unrealized loss of $0.2 million for the year ended December 31, 2022, a net unrealized gain of $14.9 million for the year ended December 31, 2021 and a net unrealized loss of $0.9 million for the year ended December 31, 2020 due to the observable changes in fair value. Over the life of the investments, the Company has recognized a net unrealized gain of $13.8 million due to the observable changes in fair value. Stock Purchase Warrant The Company holds an investment in a stock purchase warrant that gives the Company the right to purchase a fixed number of shares of common stock of a non-real estate investee. The warrant meets the definition of a derivative and is measured at fair value based on Level 2 inputs. Changes in the fair value of the derivative asset are included in unrealized (loss) gain on non-real estate investments on the Consolidated Statements of Operations. The Company recognized an unrealized loss of $1.6 million due to the change in the fair value of the stock purchase warrant during the year ended December 31, 2022. The Company recognized an unrealized gain of $1.7 million due to the change in the fair value of the stock purchase warrant during the year ended December 31, 2021. No gain or loss was recognized related to the change in the fair value of the stock purchase warrant during the year ended December 31, 2020. Lease Accounting The Company accounts for its leases under ASC 842, which requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The practical expedient was elected only for the Company’s leases related to the office properties. For the Company’s studio properties, the timing and pattern of the transfer of the lease components and non-lease components for studio properties are not the same and therefore the Company did not elect this practical expedient for the Company’s studio properties. The standalone selling price related to the studio non-lease components is readily available and does not require estimates. Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases, sound stages, office leases and other facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less, the Company makes an accounting policy election by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Variable lease payments are excluded from the lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the lease liabilities was 5.6% as of December 31, 2022. ROU assets are recognized in the amount of the initial lease liability, adjusted to include lease prepayments and initial direct costs and exclude lease incentives. ROU assets acquired in connection with business combination transactions are also adjusted for “above- and below-” market lease terms. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 23 y |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations Quixote Acquisition On August 31, 2022 (“Quixote Acquisition Date”), the Company acquired 100% of the equity interests in Quixote, which rents sound stages, cast trailers and trucks and other equipment essential for media content production and will expand the Company’s service offerings for its studio platform. The following table summarizes the Quixote Acquisition Date fair value of the consideration transferred in connection with the acquisition: Cash $ 199,098 Seller note 160,000 Total consideration $ 359,098 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Quixote Acquisition Date, which are provisional measurements and subject to change: Cash and cash equivalents $ 5,780 Accounts receivable 7,238 Prepaid expenses and other assets 3,788 Investment in real estate (1) 47,741 Non-real estate property, plant and equipment 65,939 Intangible assets 76,900 Operating lease right-of-use assets 106,115 Total assets acquired 313,501 Accounts payable, accrued liabilities and other $ 12,700 Operating lease liabilities 95,112 Total liabilities assumed 107,812 Net identifiable assets acquired $ 205,689 Goodwill 153,409 NET ASSETS ACQUIRED $ 359,098 _____________ 1. Represents leasehold improvements related to Quixote’s leasehold interests in studio properties. Of the $76.9 million of intangible assets acquired as part of the Quixote acquisition, $28.6 million was assigned to the registered trade name, which is not subject to amortization. The remaining $48.3 million of acquired intangible assets includes customer relationships of $45.4 million (seven-year useful life) and non-compete agreements of $2.9 million (five-year weighted-average useful life). The finite-lived intangible assets are subject to a weighted-average useful life of approximately seven years. Goodwill of $153.4 million for the Quixote acquisition was recognized in connection with the transaction. The goodwill recognized is attributable to expected synergies and the assembled workforce of Quixote. The goodwill has been allocated to the studio reporting unit. Goodwill is deductible for tax purposes and, as a result, deferred taxes have been recorded. During the year ended December 31, 2022, the Company recognized acquisition-related costs of $8.7 million for the Quixote acquisition. These costs are included in transaction-related expenses on the Consolidated Statement of Operations. The amounts of revenue and loss from operations of Quixote included in the Company’s Consolidated Statement of Operations from the Quixote Acquisition Date to December 31, 2022 are as follows: Revenue $ 33,200 Loss from operations $ (5,290) The following represents the pro forma Consolidated Statements of Operations as if the results of operations of Quixote had been included in the consolidated results of the Company for the years ended December 31, 2022 and 2021: Year Ended Year Ended Revenue $ 1,090,857 $ 982,985 Net (loss) income $ (17,715) $ 38,508 The amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Quixote to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on January 1, 2021. Zio and Star Waggons Acquisitions On August 16, 2021 and August 31, 2021 (each an “Acquisition Date” individually, and collectively, the “Acquisition Dates”), the Company acquired 100% of the equity interests in Zio and Star Waggons, respectively. The acquired businesses provide transportation and logistics services to studio productions and their acquisition will expand the Company’s service offerings for its studio platform. The following table summarizes the Acquisition Date fair value of the consideration transferred in connection with the acquisitions: Zio Star Waggons Cash $ 117,198 $ 92,656 Contingent consideration 22,543 — Total consideration $ 139,741 $ 92,656 The terms of the Zio securities purchase agreement require the Company to pay up to $35.0 million of additional consideration (the “earnout”) to the business’s former shareholders, subject to certain performance thresholds being met, of which $15.0 million has been paid through December 31, 2022. As of December 31, 2022, the fair value of the remaining earnout liability was $9.3 million. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective Acquisition Dates: Zio Star Waggons Cash and cash equivalents $ 1,084 $ 300 Accounts receivable 3,001 4,185 Prepaid expenses and other assets 1,509 1,605 Non-real estate property, plant and equipment 23,399 25,000 Intangible assets 41,670 33,480 Total assets acquired 70,663 64,570 Accounts payable, accrued liabilities and other $ 1,498 $ 1,913 Intangible liabilities — 110 Total liabilities assumed 1,498 2,023 Net identifiable assets acquired $ 69,165 $ 62,547 Goodwill 70,576 30,109 NET ASSETS ACQUIRED $ 139,741 $ 92,656 Of the $41.7 million of intangible assets acquired as part of the Zio acquisition, $8.5 million was assigned to the registered trade name, which is not subject to amortization. The remaining $33.2 million of acquired intangible assets includes customer relationships of $30.0 million (seven-year useful life) and non-compete agreements of $3.0 million (five-year weighted-average useful life). The finite-lived intangible assets are subject to a weighted-average useful life of approximately seven years. Of the $33.5 million of intangible assets acquired as part of the Star Waggons acquisition, $8.6 million was assigned to the registered trade name, which is not subject to amortization. The remaining $24.9 million of acquired intangible assets includes customer relationships valued at $22.5 million (seven-year useful life) and non-compete agreements valued at $2.3 million (five-year weighted-average useful life). The finite-lived intangible assets are subject to a weighted-average useful life of approximately seven years. Goodwill of $70.6 million and $30.1 million for the Zio and Star Waggons acquisitions, respectively, was recognized on the respective Acquisition Dates. The goodwill recognized is attributable to the expected synergies and the assembled workforce of Zio and Star Waggons. The goodwill has been allocated to the studio services reporting unit. Goodwill is deductible for tax purposes and as a result, deferred taxes have been recorded. As of December 31, 2022, there were no changes in the recognized amounts of goodwill resulting from these acquisitions. During the year ended December 31, 2021, the Company recognized acquisition-related costs of $3.4 million and $2.4 million for the Zio and Star Waggons acquisitions, respectively. These costs are included in transaction-related expenses on the Consolidated Statement of Operations. The amounts of revenue and income from operations of Zio and Star Waggons included in the Company’s Consolidated Statements of Operations from each respective Acquisition Date to December 31, 2021 are as follows: Zio Star Waggons Revenue $ 11,419 $ 9,651 Income from operations $ 2,395 $ 2,947 The following represents the pro forma Consolidated Statements of Operations as if the results of operations of Zio and Star Waggons had been included in the consolidated results of the Company for the years ended December 31, 2021 and 2020: Year Ended Year Ended Revenue $ 933,229 $ 830,463 Net income $ 38,884 $ 8,159 The amounts have been calculated after applying the Company’s accounting policies and adjusting the results of Zio and Star Waggons to reflect the additional depreciation and amortization that would have been charged assuming the fair value |
Investment in Real Estate
Investment in Real Estate | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2022 December 31, 2021 Land $ 1,397,714 $ 1,313,385 Building and improvements 6,273,655 6,241,254 Tenant and leasehold improvements 868,193 786,991 Furniture and fixtures 9,639 14,020 Property under development 167,371 5,827 INVESTMENT IN REAL ESTATE, AT COST $ 8,716,572 $ 8,361,477 Acquisitions of Real Estate On April 27, 2022, the Company completed its previously announced acquisition of Washington 1000, a fully entitled office development site in Seattle, Washington for a total purchase price of $85.6 million, before certain credits, prorations and closing costs. On May 19, 2022, the Company purchased a parcel of land at Sunset Gower Studios that was previously encumbered by a ground lease for a total purchase price of $22.0 million, before certain credits, prorations and closing costs. On July 15, 2022, the Company purchased 5801 Bobby Foster Road, approximately 29 acres of land with an office/warehouse located in Albuquerque, New Mexico, for the storage of trailers and other rental assets used to serve the surrounding studio production industry. The property was acquired for a total purchase price of $8.0 million, before certain credits, prorations and closing costs. The following table represents the Company’s final purchase price accounting for the asset acquisitions completed in 2022: Washington 1000 Sunset Gower Studios Land 5801 Bobby Foster Road TOTAL ACQUISITION COST (1) $ 86,313 $ 22,156 $ 8,457 Relative fair value allocation Land $ 59,987 $ 22,156 $ 2,189 Building and improvements 11,053 — 6,268 Parking easement (2) 15,273 — — TOTAL $ 86,313 $ 22,156 $ 8,457 _____________ 1. Includes capitalized transaction-related expenses. 2. Parking easement has an indefinite useful life and is recorded in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. On December 23, 2021, the Company purchased the 197,136 square-foot 5 th & Bell office property located in Seattle, Washington. The purchase price before certain credits, prorations and closing costs was $118.9 million. The following table represents the Company’s final purchase price accounting for the 5 th & Bell acquisition: TOTAL ACQUISITION COST (1) $ 118,907 Relative fair value allocation Investment in real estate $ 102,939 Deferred leasing costs and in-place lease intangibles (2)(3) 10,443 Below-market ground leases (2)(3) 10,844 Below-market leases (3)(4) (5,319) TOTAL $ 118,907 _____________ 1. Includes capitalized transaction-related expenses. 2. Included in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. 3. The weighted-average amortization period of these intangible assets and liabilities is 9.4 years (before any renewal or extension options). 4. Included in intangible liabilities, net on the Consolidated Balance Sheet. Impairment of Long-Lived Assets During the years ended December 31, 2022 and 2021, the Company recorded $13.0 million and $2.8 million, respectively, of impairment charges related to the tangible assets of its Del Amo office property due to a reduction in the estimated fair value of the property. The estimated fair values of $2.8 million and $17.4 million as of the respective measurement dates were based on the sales price and the then-estimated sales price of the property, respectively. These fair value measurements are classified within Level 2 of the fair value hierarchy. The property was sold in August 2022. During the year ended December 31, 2022, the Company recorded $1.5 million of impairment charges related to the tangible assets of its Northview Center office property due to a reduction in the estimated fair value of the property. The property was sold in August 2022. The estimated fair value of $46.0 million was based on the sales price of the property, which is classified within Level 2 of the fair value hierarchy. During the year ended December 31, 2022, the Company recorded $3.1 million of impairment charges related to the tangible assets of its 6922 Hollywood office property due to a reduction in the estimated fair value of the property. The property was sold in October 2022. The estimated fair value of $96.0 million was based on the sales price of the property, which is classified within Level 2 of the fair value hierarchy. The Company did not record any impairment charges during the year ended December 31, 2020. Dispositions of Real Estate The following table summarizes information on dispositions completed during the year ended December 31, 2022. The Company did not complete any dispositions related to consolidated entities during the years ended December 31, 2021 and 2020. Property Segment Date of Disposition Square Feet Sales Price (1) (in millions) Del Amo Office 8/5/2022 113,000 $ 2.8 Northview Office 8/30/2022 179,985 46.0 6922 Hollywood Office 10/20/2022 205,189 96.0 TOTAL DISPOSITIONS IN 2022 498,174 $ 144.8 _____________ 1. Represents gross sales price before certain credits, prorations and closing costs. These properties were considered non-strategic to the Company’s portfolio. The disposition of these properties resulted in a loss of $2.2 million for the year ended December 31, 2022. This amount is included in the loss on sale of real estate line item on the Consolidated Statement of Operations. Held for Sale The Company had one and four properties classified as held for sale as of December 31, 2022 and December 31, 2021, respectively. The properties were identified as non-strategic assets to the Company’s portfolio. The following table summarizes information on properties classified as held for sale as of December 31, 2022 and 2021: Property Segment Submarket Square Feet Status as of December 31, 2022 Status as of December 31, 2021 Skyway Landing Office Redwood Shores 246,997 Held for Sale (1) Held for Sale Del Amo Office Torrance 113,000 Sold Held for Sale Northview Office Lynnwood 179,985 Sold Held for Sale 6922 Hollywood Office Hollywood 205,189 Sold Held for Sale _____________ 1. The property was sold on February 6, 2023 for $102.0 million before certain credits, prorations and closing costs. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2022: Skyway Landing ASSETS Investment in real estate, net $ 92,148 Accounts receivable, net 112 Straight-line rent receivables, net 460 Deferred leasing costs and intangible assets, net 501 Prepaid expenses and other assets, net 17 ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 93,238 LIABILITIES Accounts payable, accrued liabilities and other $ 400 Security deposits and prepaid rent 265 LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 665 The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2021: Northview Center Skyway Landing Del Amo 6922 Hollywood ASSETS Investment in real estate, net $ 40,338 $ 89,873 $ 15,213 $ 91,353 Accounts receivable, net 95 142 — 103 Straight-line rent receivables, net 901 1,659 — 4,714 Deferred leasing costs and intangible assets, net 751 450 2,742 1,999 Prepaid expenses and other assets, net — — — 187 ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 42,085 $ 92,124 $ 17,955 $ 98,356 LIABILITIES Accounts payable, accrued liabilities and other $ 184 $ 273 $ 12 $ 1,372 Intangible liabilities, net — — — 96 Security deposits and prepaid rent 395 1,205 — 361 LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 579 $ 1,478 $ 12 $ 1,829 |
Non-Real Estate Property, Plant
Non-Real Estate Property, Plant and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Non-Real Estate Property, Plant and Equipment, net | Non-Real Estate Property, Plant and Equipment, net The following table summarizes the Company’s non-real estate property, plant and equipment, net as of: December 31, 2022 December 31, 2021 Trailers $ 68,973 $ 35,181 Production equipment 36,019 — Trucks and other vehicles 20,306 12,204 Leasehold improvements 16,993 15,267 Furniture, fixtures and equipment 5,849 4,592 Other equipment 5,693 4,605 Non-real estate property, plant and equipment, at cost 153,833 71,849 Accumulated depreciation (23,544) (13,380) NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET $ 130,289 $ 58,469 Non-real estate property, plant and equipment is carried at cost less accumulated depreciation. The Company computes depreciation using the straight-line method over the estimated useful lives of the assets, which range from three |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Entities | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Real Estate Entities | Investment in Unconsolidated Real Estate Entities The following table summarizes the Company’s investments in unconsolidated joint ventures: Property Property Type Submarket Ownership Interest Functional Currency Sunset Waltham Cross Studios Development Broxbourne, United Kingdom 35% Pound sterling (1) Sunset Glenoaks Studios Development Los Angeles 50% U.S. dollar (2)(3) Bentall Centre Operating Property Downtown Vancouver 20% Canadian dollar (2)(4) __________________ 1. On July 29, 2021, the Company purchased 35% of the ownership interests in the joint venture that owns the Sunset Waltham Cross Studios development. The Company also owns 35% of the ownership interests in the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2. The Company serves as the operating member of this joint venture. 3. The Company has provided various guarantees for the joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. 4. The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $98.1 million. The Company’s maximum exposure related to its unconsolidated joint ventures is limited to its investment. The Company’s investments in foreign real estate entities are subject to foreign currency fluctuation risk. Such investments are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. The Company’s share of the income (loss) from foreign unconsolidated real estate entities is translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive loss as a separate component of total equity and are excluded from net income. The Company held ownership interests in other immaterial joint ventures in the total of $0.1 million as of December 31, 2022 and 2021, respectively. The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures: December 31, 2022 December 31, 2021 ASSETS Investment in real estate, net $ 1,093,448 $ 1,048,593 Other assets 62,870 57,232 TOTAL ASSETS 1,156,318 1,105,825 LIABILITIES Secured debt, net 527,985 516,153 Other liabilities 49,027 40,307 TOTAL LIABILITIES 577,012 556,460 Company’s capital (1) 170,656 148,914 Partner's capital 408,650 400,451 TOTAL CAPITAL 579,306 549,365 TOTAL LIABILITIES AND CAPITAL $ 1,156,318 $ 1,105,825 _____________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in the income from unconsolidated real estate entities line item on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures: Year Ended December 31, 2022 2021 2020 TOTAL REVENUES $ 83,441 $ 80,901 $ 69,592 TOTAL EXPENSES (78,083) (70,934) (65,983) NET INCOME $ 5,358 $ 9,967 $ 3,609 |
Deferred Leasing Costs and Inta
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net | Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net The following summarizes the Company’s deferred leasing costs and intangibles as of: December 31, 2022 December 31, 2021 Deferred leasing costs and in-place lease intangibles $ 328,617 $ 331,149 Accumulated amortization (141,353) (126,423) Deferred leasing costs and in-place lease intangibles, net 187,264 204,726 Below-market ground leases 79,562 79,562 Accumulated amortization (17,979) (15,233) Below-market ground leases, net 61,583 64,329 Above-market leases 724 1,334 Accumulated amortization (324) (782) Above-market leases, net 400 552 Customer relationships 97,900 52,500 Accumulated amortization (12,346) (2,684) Customer relationships, net 85,554 49,816 Non-competition agreements 8,200 5,300 Accumulated amortization (1,632) (379) Non-competition agreements, net 6,568 4,921 Trade name 37,200 17,100 Parking easement 15,273 — DEFERRED LEASING COSTS AND INTANGIBLE ASSETS, NET $ 393,842 $ 341,444 Below-market leases $ 59,540 $ 75,827 Accumulated amortization (26,195) (34,326) Below-market leases, net 33,345 41,501 Above-market ground leases 1,095 1,095 Accumulated amortization (349) (306) Above-market ground leases, net 746 789 INTANGIBLE LIABILITIES, NET $ 34,091 $ 42,290 The Company recognized the following amortization related to deferred leasing costs and intangibles: For the Year Ended December 31, 2022 2021 2020 Deferred leasing costs and in-place lease intangibles (1) $ (40,171) $ (45,128) $ (41,334) Below-market ground leases (2) $ (2,775) $ (2,410) $ (2,395) Above-market leases (3) $ (124) $ (617) $ (874) Customer relationships (1) $ (9,662) $ (2,684) $ — Non-competition agreements (1) $ (1,253) $ (379) $ — Below-market leases (3) $ 8,156 $ 12,032 $ 10,509 Above-market ground leases (2) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses, except for amortization of lease incentive costs which is recorded in office rental revenues on the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3. Amortization is recorded in office rental revenues on the Consolidated Statements of Operations. The following table provides information regarding the Company’s estimated future amortization of deferred leasing costs and intangibles as of December 31, 2022: For the Year Ended December 31, Deferred Leasing Costs and In-place Lease Intangibles Below-market Ground Leases Above-market Leases Customer relationships Non-competition agreements Below-market Leases Above-market Ground Leases 2023 $ (34,732) $ (2,752) $ (62) $ (13,986) $ (1,640) $ 6,277 $ 43 2024 (27,792) (2,752) (57) (13,986) (1,640) 5,098 43 2025 (21,581) (2,752) (48) (13,986) (1,640) 4,137 43 2026 (18,339) (2,752) (43) (13,986) (1,237) 3,961 43 2027 (15,562) (2,752) (43) (13,986) (411) 3,893 43 Thereafter (69,258) (47,823) (147) (15,624) — 9,979 531 TOTAL $ (187,264) $ (61,583) $ (400) $ (85,554) $ (6,568) $ 33,345 $ 746 During the year ended December 31, 2022, the Company recognized an $8.5 million impairment of the Zio trade name within impairment loss on the Consolidated Statement of Operations. The impairment is related to the announced rebranding and integration of Zio into the Company’s existing Sunset Studios platform, after which the Company will no longer use the Zio trade name. During the year ended December 31, 2022, the Company recognized an impairment loss of $2.4 million related to the below-market ground lease at its Del Amo office property. During the year ended December 31, 2021, the Company recognized an impairment loss of $0.4 million related to the below-market ground lease at its Del Amo office property. See Note 4 for details. The losses are recorded within impairment loss on the Consolidated Statements of Operations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information with respect to our outstanding indebtedness: December 31, 2022 December 31, 2021 Interest Rate (1) Contractual Maturity Date (2) UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (3)(4)(5) $ 385,000 $ 125,000 SOFR + 1.15% to 1.60% 12/21/2026 (6) Series A notes (7) 110,000 110,000 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 (8) 350,000 — 5.95% 2/15/2028 Total unsecured debt 2,660,000 2,050,000 Secured debt Hollywood Media Portfolio 1,100,000 1,100,000 LIBOR + 0.99% 8/9/2026 (9) Acquired Hollywood Media Portfolio debt (209,814) (209,814) LIBOR + 1.55% 8/9/2026 (9) Hollywood Media Portfolio, net (10)(11) 890,186 890,186 One Westside and 10850 Pico (12) 316,602 241,388 SOFR + 1.60% 12/18/2024 (13) Element LA 168,000 168,000 4.59% 11/6/2025 1918 Eighth (14) 314,300 314,300 SOFR + 1.40% 12/18/2025 Hill7 (15) 101,000 101,000 3.38% 11/6/2028 Quixote 160,000 — 5.00% 12/31/2023 Total secured debt 1,950,088 1,714,874 Total unsecured and secured debt 4,610,088 3,764,874 Unamortized deferred financing costs/loan discounts (16) (24,226) (30,971) TOTAL UNSECURED AND SECURED DEBT, NET $ 4,585,862 $ 3,733,903 IN-SUBSTANCE DEFEASED DEBT $ — $ 128,212 4.47% 10/1/2022 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 December 31, 2022, which may be different than the interest rates as of December 31, 2021 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, 2022, 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. On February 6, 2023, the Company made a $102.0 million repayment on this facility. 6. Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 7. On January 3, 2023, the Company repaid the Series A notes in full. 8. An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects. 9. Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. 10. The Company owns 51% of the ownership interests in the consolidated joint venture that owns the Hollywood Media Portfolio. The joint venture holds a $1.1 billion mortgage loan secured by the Hollywood Media Portfolio. The Company purchased bonds comprising the loan in the amount of $209.8 million. 11. The interest on the full principal amount has been effectively capped at 4.49% (3.50% strike rate + 0.99% spread) per annum through the use of an interest rate cap. 12. The Company owns 75% of the ownership interests in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 13. Includes the option to extend the initial maturity date of December 18, 2023 twice for an additional six-month term each. 14. The Company owns 55% of the ownership interests in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan is interest-only through its term. 15. The Company owns 55% of the ownership interests in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. 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. 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 2 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. Current Year Activity During the year ended December 31, 2022, there were $260.0 million in borrowings on the unsecured revolving credit facility, net of repayments. 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. In July 2022, the Company repaid its in-substance defeased debt in the amount of $126.4 million using the proceeds from the maturity of its U.S. Government securities in June 2022. In August 2022, the Company modified the existing loan agreement secured by its 1918 Eighth property, whereby the LIBOR-based floating interest rate was replaced with a term SOFR-based floating interest rate. The Company applied the relief provisions of ASC 848 and accounted for this modification as a continuation of the existing loan agreement. In August 2022, the Company acquired Quixote. In conjunction with the acquisition, the Company obtained a $160.0 million note payable from the sellers secured by the assets of Quixote. The loan has an interest rate of 5.00% per annum and is interest-only through the maturity date of December 31, 2023. In September 2022, the operating partnership completed an underwritten public offering of $350.0 million of 5.95% registered senior notes due in 2028, which were issued at a discount of 99.614% of par and are fully and unconditionally guaranteed by the Company. The net proceeds from the offering, after deducting the underwriting discount and commissions, were approximately $346.5 million and were used to repay outstanding borrowings under its unsecured revolving credit facility. An amount equal to the net proceeds has been allocated to new or existing eligible green projects. In September 2022, the operating partnership entered into the First Modification Agreement to the Fourth Amended and Restated Credit Agreement, which replaced the LIBOR-based floating interest rate option with a term SOFR-based floating interest rate option as a benchmark rate for borrowings denominated in U.S. dollars for all purposes under the existing credit agreement. The Company applied the relief provisions of ASC 848 and accounted for this modification as a continuation of the existing credit agreement. In November 2022, the Company modified the existing loan agreement secured by its One Westside property, whereby the LIBOR-based floating interest rate was replaced with a term SOFR-based floating interest rate. The Company applied the relief provisions of ASC 848 and accounted for this modification as a continuation of the existing loan agreement. 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, 2022: For the Year Ended December 31, Unsecured and Secured Debt Joint Venture Partner Debt 2023 $ 320,000 $ — 2024 316,602 — 2025 741,300 — 2026 1,425,186 — 2027 456,000 — Thereafter 1,351,000 66,136 TOTAL $ 4,610,088 $ 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 S&P or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. As of December 31, 2022, the Company’s S&P and Moody’s ratings were BBB- and Baa3, 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 as of December 31, 2022 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% 44.2% Unsecured indebtedness to unencumbered asset value ≤ 60% 46.3% Adjusted EBITDA to fixed charges ≥ 1.5x 3.0x Secured indebtedness to total asset value ≤ 45% 19.7% Unencumbered NOI to unsecured interest expense ≥ 2.0x 2.6x The following table summarizes existing covenants and their covenant levels related to our registered senior notes as of December 31, 2022: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 47.6% Total unencumbered assets to unsecured debt ≥ 150% 220.2% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.0x Secured debt to total assets ≤ 45% 20.7% _________________ 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, 2022. 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 guarantees the operating partnership’s unsecured debt. Interest Expense The following table represents a reconciliation from gross interest expense to interest expense on the Consolidated Statements of Operations: Year Ended December 31, 2022 2021 2020 Gross interest expense (1) $ 154,038 $ 133,165 $ 126,447 Capitalized interest (18,031) (21,689) (19,509) Amortization of deferred financing costs and loan discount, net 13,894 10,463 6,885 INTEREST EXPENSE $ 149,901 $ 121,939 $ 113,823 _________________ 1. Includes interest on the Company’s debt and hedging activities. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. Derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2022 and December 31, 2021: Underlying Debt Instrument Number of Derivatives Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value Low High 2022 2021 Interest rate swaps Hollywood Media Portfolio (2)(3) 2 $ 350,000 April 2015 April 2022 2.96 % 3.46 % $ — $ (1,413) Hollywood Media Portfolio (2)(3) 1 125,000 June 2016 November 2022 2.63 % 3.13 % — (1,122) Interest rate cap Strike Rate Hollywood Media Portfolio (4) 1 1,100,000 August 2021 August 2023 3.50% 9,292 368 TOTAL $ 9,292 $ (2,167) _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio. 2. The swaps were designated under the first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. 3. These derivatives were designated as effective cash flow hedges for accounting purposes. 4. The interest rate cap was designated as an effective cash flow hedge for accounting purposes beginning in December 2022. The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of December 31, 2022, the Company expects $12.0 thousand of unrealized gain included in accumulated other comprehensive loss will be reclassified as a reduction to interest expense in the next 12 months. |
U.S. Government Securities
U.S. Government Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
U.S. Government Securities | U.S. Government SecuritiesThe acquisition of the One Westside and 10850 Pico properties in 2018 included the assumption of debt that was, in substance, defeased through the purchase of U.S. Government-backed securities. The securities were held to maturity and were carried at amortized cost on the Consolidated Balance Sheet. The remaining securities matured during the year ended December 31, 2022, resulting in a balance of $0 as of December 31, 2022, as compared to a balance of $129.3 million as of December 31, 2021. |
Future Minimum Rents and Lease
Future Minimum Rents and Lease Payments | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2023 to 2040. 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, 2022: For the Year Ended December 31, Non-cancellable Subject to Early Termination Options Total (1) 2023 $ 637,662 $ 1,019 $ 638,681 2024 592,404 3,737 596,141 2025 453,932 38,572 492,504 2026 391,510 47,659 439,169 2027 325,477 54,287 379,764 Thereafter 1,170,616 121,205 1,291,821 TOTAL $ 3,571,601 $ 266,479 $ 3,838,080 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, six office leases and 17 other leases as of December 31, 2022. The Company’s operating lease obligations have expiration dates ranging from 2023 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, 2022, the present value of the remaining contractual payments of $745.4 million under the Company’s operating lease agreements was $399.8 million. The corresponding operating lease right-of-use assets amounted to $401.1 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, 2022: For the Year Ended December 31, Lease Payments (1) 2023 $ 39,054 2024 39,261 2025 39,485 2026 37,879 2027 35,184 Thereafter 554,525 Total operating lease payments 745,388 Less: interest portion (345,587) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 399,801 _____________ 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, 2022 2021 2020 Variable rental expense $ 9,854 $ 10,405 $ 8,944 Minimum rental expense $ 31,003 $ 21,482 $ 19,964 |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2023 to 2040. 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, 2022: For the Year Ended December 31, Non-cancellable Subject to Early Termination Options Total (1) 2023 $ 637,662 $ 1,019 $ 638,681 2024 592,404 3,737 596,141 2025 453,932 38,572 492,504 2026 391,510 47,659 439,169 2027 325,477 54,287 379,764 Thereafter 1,170,616 121,205 1,291,821 TOTAL $ 3,571,601 $ 266,479 $ 3,838,080 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, six office leases and 17 other leases as of December 31, 2022. The Company’s operating lease obligations have expiration dates ranging from 2023 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, 2022, the present value of the remaining contractual payments of $745.4 million under the Company’s operating lease agreements was $399.8 million. The corresponding operating lease right-of-use assets amounted to $401.1 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, 2022: For the Year Ended December 31, Lease Payments (1) 2023 $ 39,054 2024 39,261 2025 39,485 2026 37,879 2027 35,184 Thereafter 554,525 Total operating lease payments 745,388 Less: interest portion (345,587) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 399,801 _____________ 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, 2022 2021 2020 Variable rental expense $ 9,854 $ 10,405 $ 8,944 Minimum rental expense $ 31,003 $ 21,482 $ 19,964 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivative assets (1) $ — $ 9,292 $ — $ 9,292 $ — $ 368 $ — $ 368 Interest rate derivative liabilities (2) $ — $ — $ — $ — $ — $ (2,535) $ — $ (2,535) Non-real estate investments measured at fair value (1) $ 544 $ — $ — $ 544 $ 1,915 $ 1,568 $ — $ 3,483 Stock purchase warrant (1) $ — $ 95 $ — $ 95 $ — $ 1,664 $ — $ 1,664 Earnout liability (2)(3) $ — $ — $ (9,300) $ (9,300) $ — $ — $ (11,383) $ (11,383) Non-real estate investments measured at NAV (1)(4) $ — $ — $ — $ 46,785 $ — $ — $ — $ 27,964 _____________ 1. Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2. Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3. Related to the acquisition of Zio. Refer to Note 3 for additional details. 4. According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Level 1 items include investments in the common stock of publicly traded companies, which are valued on a quarterly basis using the closing stock price. Level 2 items include interest rate derivatives, which are valued on a quarterly basis using a linear regression model, as well as investments in preferred stock and warrants of a publicly traded company, which are valued on a quarterly basis using the closing stock price and a Black-Scholes model, respectively. Level 3 items include the earnout liability, which is valued on a quarterly basis using a probability-weighted discounted cash flow model. Inputs to the model include the discount rate and probability-weighted earnout payments based on a Monte Carlo simulation with one million trials. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values. The following table summarizes changes in the carrying amount of the earnout liability during the year ended December 31, 2022: Balance, December 31, 2021 $ (11,383) Partial settlement 3,840 Remeasurement to fair value (1,757) Balance, December 31, 2022 $ (9,300) Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. The fair value of the investment in U.S. Government securities is an estimate based on Level 1 inputs. The fair values of debt are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ — $ — $ 129,321 $ 130,910 Liabilities Unsecured debt (1) $ 2,660,000 $ 2,364,871 $ 2,050,000 $ 2,154,908 Secured debt (1) $ 1,950,088 $ 1,927,297 $ 1,714,874 $ 1,713,726 In-substance defeased debt $ — $ — $ 128,212 $ 128,361 Joint venture partner debt $ 66,136 $ 60,327 $ 66,136 $ 69,116 _____________ 1. Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2010 Incentive Plan permits the Company’s board of directors (the “Board”) to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. As of December 31, 2022, 7.1 million common shares were available for grant under the 2010 Plan. The calculation of shares available for grant is determined after taking into account unvested restricted stock, unvested operating partnership performance units, and unvested RSUs, assuming the maximum bonus pool eligible ultimately is earned and based on a stock price of $9.73. The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee Board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. Additionally, certain non-employee Board members elect to receive operating partnership performance units in lieu of their annual cash retainer fees. These awards are generally issued in the fourth quarter and are fully-vested upon their issuance. The Board awards time-based restricted shares or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the first or fourth quarter and vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is an executive officer. Lastly, certain employees elect to receive operating partnership performance units in lieu of their annual cash bonus. These awards are generally issued in the first or fourth quarter and are fully-vested upon their issuance. Beginning in 2020, the Compensation Committee of the Board (“Compensation Committee”) adopted an annual Hudson Pacific Properties, Inc. Performance Stock Unit Plan (“PSU Plan”). Under the PSU Plan, the Compensation Committee awards restricted stock units or performance units in the operating partnership to certain employees. PSU Plan grants consist of two portions. A portion of each award, the Relative Total Shareholder Return (“TSR”) Performance Unit, is eligible to vest based on the achievement of the Company’s TSR compared to the TSR of the FTSE NAREIT All Equity REITs index over a three-year performance period, with the vesting percentage subject to certain percentage targets. The remaining portion of each award, the Operational Performance Unit, becomes eligible to vest based on the achievement of operational performance metrics over a one-year performance period and vests over three years. The number of Operational Performance Units that becomes eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of absolute TSR goals over a three-year performance period by applying the applicable vesting percentages. Certain of the awards granted under the PSU Plan are subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred. Time-Based Awards The stock-based compensation is valued based on the quoted closing price of the Company’s common stock on the applicable grant date and discounted for any hold restrictions in accordance with ASC 718. The stock-based compensation is amortized through the final vesting period on a straight-line basis. Forfeitures of awards are recognized as they occur. Performance-Based Awards PSU Plan The following table outlines key components of the 2022 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $15.0 $15.0 Performance period 1/1/2022 to 12/31/2022 1/1/2022 to 12/31/2024 The following table outlines key components of the 2021 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $16.7 $16.7 Performance period 1/1/2021 to 12/31/2021 1/1/2021 to 12/31/2023 The following table outlines key components of the 2020 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $14.9 $14.9 Performance period 1/1/2020 to 12/31/2020 1/1/2020 to 12/31/2022 The stock-based compensation cost of the 2022, 2021 and 2020 PSU Plans was valued in accordance with ASC 718 utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The stock-based compensation is amortized through the final vesting period under a graded vesting expense recognition schedule. Forfeitures of awards are recognized as they occur. The per unit fair value of the 2022, 2021 and 2020 PSU awards granted was estimated on the date of grant using the following assumptions in the Monte Carlo simulation: 2022 2021 2020 Expected price volatility for the Company 43.00% 41.00% 17.00% Expected price volatility for the particular REIT index 33.00% 31.00% 14.00% Risk-free rate 1.72% 0.17% 1.66% Dividend yield 3.60% 3.50% 2.80% Summary of Unvested Share Activity The following table summarizes the activity and status of all unvested stock awards: 2022 2021 2020 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 507,534 $ 25.17 442,645 $ 27.44 459,784 $ 33.67 Granted 50,915 20.15 276,800 23.90 404,779 24.70 Vested (234,741) 26.81 (203,329) 28.33 (420,970) 31.61 Canceled (13,871) 24.42 (8,582) 26.21 (948) 29.91 Unvested at December 31 309,837 $ 23.14 507,534 $ 25.17 442,645 $ 27.44 The following table summarizes the activity and status of all unvested time-based restricted operating partnership performance units: 2022 2021 2020 Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Unvested at January 1 681,394 $ 24.91 771,432 $ 27.08 608,679 $ 32.70 Granted 25,206 11.98 355,551 24.68 571,978 23.49 Vested (348,944) 26.42 (349,804) 29.85 (409,225) 30.42 Canceled — — (95,785) 23.49 — — Unvested at December 31 357,656 $ 22.53 681,394 $ 24.91 771,432 $ 27.08 Share-based Compensation Recorded The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2022 2021 2020 Expensed stock compensation (1) $ 24,296 $ 21,163 $ 22,723 Capitalized stock compensation (2) 3,354 3,524 3,306 Total stock compensation (3) $ 27,650 $ 24,687 $ 26,029 _________________ 1. Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2. Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets. As of December 31, 2022, total unrecognized compensation cost related to unvested share-based payments was $29.9 million. It is expected to be recognized over a weighted-average period of two years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2022, 2021 and 2020, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net (loss) income available to common stockholders: For the Year Ended December 31, 2022 2021 2020 Numerator: Basic and diluted net (loss) income available to common stockholders $ (56,499) $ 6,064 $ 383 Denominator: Basic weighted average common shares outstanding 143,732,433 151,618,282 153,126,027 Effect of dilutive instruments (1) — 325,078 42,998 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 143,732,433 151,943,360 153,169,025 Basic earnings per common share $ (0.39) $ 0.04 $ 0.00 Diluted earnings per common share $ (0.39) $ 0.04 $ 0.00 _____________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The operating partnership calculates basic earnings per unit using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2022, 2021 and 2020, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower earnings per unit amount. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net (loss) income available to common unitholders: For the Year Ended December 31, 2022 2021 2020 Numerator: Basic and diluted net (loss) income available to common unitholders $ (57,208) $ 6,125 $ 393 Denominator: Basic weighted average common units outstanding 145,580,928 153,007,287 154,040,775 Effect of dilutive instruments (1) — 325,078 42,998 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 145,580,928 153,332,365 154,083,773 Basic earnings per common unit $ (0.39) $ 0.04 $ 0.00 Diluted earnings per common unit $ (0.39) $ 0.04 $ 0.00 _____________ 1. The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest Redeemable Preferred Units of the Operating Partnership As of December 31, 2022 and 2021, there were 392,598 Series A preferred units of partnership interest in the operating partnership, or Series A preferred units, which are not owned by the Company. These Series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit. The units are convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock. Redeemable Non-controlling Interest in Consolidated Real Estate Entities On March 1, 2018, the Company entered into a joint venture agreement with Macerich to form the HPP-MAC JV. On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The Company has a 75% interest in the joint venture that owns the One Westside and 10850 Pico properties. The Company has a put right, after a specified time, to sell its interest at fair market value. Macerich has a put right, after a specified time, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable. On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building property. The Company has a 55% interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. Allianz has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable. The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2021 $ 9,815 $ 129,449 Contributions — 575 Distributions — (16) Declared dividend (612) — Net income (loss) 612 (4,964) BALANCE AT DECEMBER 31, 2022 $ 9,815 $ 125,044 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive income (loss) (“AOCI”): Derivative Instruments Currency Translation Adjustments Total AOCI Balance at January 1, 2020 $ (2,391) $ 1,830 $ (561) Unrealized (loss) gain recognized in AOCI (14,407) 1,415 (12,992) Reclassification from AOCI into income 5,420 — 5,420 Net change in AOCI (8,987) 1,415 (7,572) Balance at December 31, 2020 (11,378) 3,245 (8,133) Unrealized gain (loss) recognized in AOCI 169 (1,049) (880) Reclassification from AOCI into income 7,252 — 7,252 Net change in AOCI 7,421 (1,049) 6,372 Balance at December 31, 2021 (3,957) 2,196 (1,761) Unrealized gain (loss) recognized in AOCI 612 (12,188) (11,576) Reclassification from AOCI into income 2,065 — 2,065 Net change in AOCI 2,677 (12,188) (9,511) Balance at December 31, 2022 $ (1,280) $ (9,992) $ (11,272) The table below presents the activity related to Hudson Pacific Properties, LP’s AOCI: Derivative Instruments Currency Translation Adjustments Total AOCI Balance at January 1, 2020 $ (2,458) $ 1,845 $ (613) Unrealized (loss) gain recognized in AOCI (14,471) 1,394 (13,077) Reclassification from AOCI into income 5,444 — 5,444 Net change in AOCI (9,027) 1,394 (7,633) Balance at December 31, 2020 (11,485) 3,239 (8,246) Unrealized gain (loss) recognized in AOCI 171 (1,064) (893) Reclassification from AOCI into income 7,360 — 7,360 Net change in AOCI 7,531 (1,064) 6,467 Balance at December 31, 2021 (3,954) 2,175 (1,779) Unrealized gain (loss) recognized in AOCI 597 (12,375) (11,778) Reclassification from AOCI into income 2,097 — 2,097 Net change in AOCI 2,694 (12,375) (9,681) Balance at December 31, 2022 $ (1,260) $ (10,200) $ (11,460) Non-controlling Interests Common Units in the Operating Partnership Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such common units on a one-for-one basis. Performance Units in the Operating Partnership Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis. Ownership Interest in the Operating Partnership The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of: December 31, 2022 December 31, 2021 December 31, 2020 Company-owned common units in the operating partnership 141,054,478 151,124,543 151,401,365 Company’s ownership interest percentage 98.5 % 98.8 % 99.1 % Non-controlling common units in the operating partnership (1) 2,191,842 1,842,898 1,321,083 Non-controlling ownership interest percentage 1.5 % 1.2 % 0.9 % _________________ 1. Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of December 31, 2022, this amount represents both common units and performance units of 550,969 and 1,640,873, respectively. As of December 31, 2021, this amount represents both common units and performance units of 550,969 and 1,291,929, respectively. As of December 31, 2020, this amount represents both common units and performance units of 550,969 and 770,114, respectively. During the years ended December 31, 2022, 2021 and 2020, 348,944, 521,815 and 409,225 performance units, respectively, were granted and vested related to various performance-based awards to our employees and directors. Common Stock Activity The Company has not completed any common stock offerings during the years ended December 31, 2022, 2021 and 2020. The Company’s ATM program permits sales of up to $125.0 million of common stock. A cumulative total of $65.8 million has been sold as of December 31, 2022. The Company utilized the ATM program during the year ended December 31, 2021 and sold 1,526,163 shares of common stock at sale prices ranging from $29.53 to $30.17 per share for total proceeds of $45.7 million, before transaction costs. The Company did not utilize the ATM program during the years ended December 31, 2022 and 2020. Share Repurchase Program The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million of its common stock under the share repurchase program. During the year ended December 31, 2022, the Company repurchased 2.1 million shares at a weighted average price of $17.65 per share for $37.2 million, before transaction costs. During the year ended December 31, 2021, the Company repurchased 1.9 million shares at a weighted average price of $23.82 per share for $46.1 million, before transaction costs. During the year ended December 31, 2020, the Company repurchased 3.5 million shares at a weighted average price of $23.00 per share for $80.1 million, before transaction costs. Since the commencement of the program through December 31, 2022, a cumulative total of $213.4 million had been repurchased. Share repurchases are accounted for on the trade date. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors. Accelerated Share Repurchase Agreements On February 25, 2022, the Company entered into an uncollared accelerated share repurchase (“ASR”) agreement to purchase $100 million of its outstanding common stock. During the first quarter 2022, the Company made an initial payment of $100 million and received an initial delivery of approximately 3.3 million shares of common stock representing 85% of the total $100 million agreement based on the closing price of our common stock on the transaction date. Final settlement of the agreement occurred during the second quarter 2022, resulting in the receipt of an additional 0.9 million shares of common stock based on an adjusted daily volume-weighted average price of $23.90 during the measurement period. On February 25, 2022, the Company entered into a collared ASR agreement to purchase $100 million of its outstanding common stock. During the year ended December 31, 2022, the Company made an initial payment of $100 million and received an initial delivery of approximately 3.3 million shares of common stock based on an estimated cap price calculated using the daily volume-weighted average price during an initial hedge period. Final settlement of the agreement occurred during the third quarter 2022, resulting in the receipt of an additional 0.7 million shares of common stock based on a floor price of $25.35. At the conclusion of the ASR program in July 2022, a total of 8.1 million shares had been repurchased at an average price of $24.60. Series C Cumulative Redeemable Preferred Stock Series C cumulative redeemable preferred stock relates to the 17,000,000 shares of our Series C preferred stock, $0.01 par value per share. Holders of Series C preferred stock, when and as authorized by the board of directors of the Company, are entitled to cumulative cash dividends at the rate of 4.750% per annum of the $25.00 per share, equivalent to $1.1875 per annum per share. Dividends are payable quarterly in arrears on or about the last day of December, March, June and September of each year. In addition to other preferential rights, the holders of Series C preferred stock are entitled to receive the liquidation preference, which is $25.00 per share, before the holders of common stock in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company’s affairs. Generally, shares of Series C preferred stock are not redeemable by the Company prior to November 16, 2026. However, upon the occurrence of a change of control, holders of the Series C preferred stock will have the right, (unless the Company has elected to redeem the Series C preferred stock) to convert into a specified number of shares of common stock. A complete description of the Series C preferred stock is contained in the Articles Supplementary which is filed as Exhibit 3.7 to this Current Report on Form 10-K. Dividends The Board declares dividends on a quarterly basis and the Company pays the dividends during the quarters in which the dividends are declared. The following table summarizes dividends per share declared and paid for the periods presented: For the Year Ended December 31, 2022 2021 2020 Common stock (1) $ 1.00 $ 1.00 $ 1.00 Common units (1) $ 1.00 $ 1.00 $ 1.00 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 Series C preferred stock (2) $ 1.3359 $ — $ — _________________ 1. The fourth quarter 2022 dividends were paid on December 29, 2022 to shareholders and unitholders of record on December 19, 2022. 2. Dividends paid during the year ended December 31, 2022 include a $0.2968750 per share dividend declared and paid in each of the first, second, third and fourth quarters of 2022 and a $0.1484375 per share dividend declared during the fourth quarter of 2021. Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation. The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distribution Per Share Total Non-Qualified Qualified Capital Gain Distributions Return of Capital 3/21/2022 3/31/2022 $ 0.250000 $ 0.107170 $ 0.107170 $ 0.000000 $ 0.000000 $ 0.142830 6/20/2022 6/30/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 9/19/2022 9/29/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 12/19/2022 12/29/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 TOTALS $ 1.000000 $ 0.428680 $ 0.428680 $ 0.000000 $ 0.000000 $ 0.571320 100.00 % 42.87 % 0.00 % 57.13 % The Company’s dividends related to its 4.750% series C preferred stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distribution Per Share Total Non-Qualified Qualified Capital Gain Distributions Return of Capital 3/21/2022 3/31/2022 $ 0.445313 $ 0.445313 $ 0.445313 $ 0.000000 $ 0.000000 $ 0.000000 6/20/2022 6/30/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 9/19/2022 9/29/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 12/19/2022 12/29/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 TOTALS $ 1.335938 $ 1.335938 $ 1.335938 $ 0.000000 $ 0.000000 $ 0.000000 100.00 % 100.00 % 0.00 % 0.00 % |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. The table below presents the operating activity of the Company’s reportable segments: Year Ended December 31, 2022 2021 2020 Office segment Office revenues $ 852,700 $ 795,370 $ 735,919 Office expenses (308,668) (280,334) (262,199) Office segment profit 544,032 515,036 473,720 Studio segment Studio revenues 173,524 101,465 69,046 Studio expenses (105,150) (55,513) (37,580) Studio segment profit 68,374 45,952 31,466 TOTAL SEGMENT PROFIT $ 612,406 $ 560,988 $ 505,186 Segment revenues $ 1,026,224 $ 896,835 $ 804,965 Segment expenses (413,818) (335,847) (299,779) TOTAL SEGMENT PROFIT $ 612,406 $ 560,988 $ 505,186 The table below is a reconciliation of net (loss) income to total profit from all segments: Year Ended December 31, 2022 2021 2020 NET (LOSS) INCOME $ (16,517) $ 29,012 $ 16,430 General and administrative 79,501 71,346 77,882 Depreciation and amortization 373,219 343,614 299,682 Income from unconsolidated real estate entities (943) (1,822) (736) Fee income (7,972) (3,221) (2,815) Interest expense 149,901 121,939 113,823 Interest income (2,340) (3,794) (4,089) Management services reimbursement income—unconsolidated real estate entities (4,163) (1,132) — Management services expense—unconsolidated real estate entities 4,163 1,132 — Transaction-related expenses 14,356 8,911 440 Unrealized loss (gain) on non-real estate investments 1,440 (16,571) 2,463 Loss on sale of real estate 2,164 — — Impairment loss 28,548 2,762 — Loss on extinguishment of debt — 6,259 2,654 Other (income) expense (8,951) 2,553 (548) TOTAL PROFIT FROM ALL SEGMENTS $ 612,406 $ 560,988 $ 505,186 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain of its executive officers, effective January 1, 2020, that provide for various severance and change in control benefits and other terms and conditions of employment. Cost Reimbursements from Unconsolidated Real Estate Entities The Company is reimbursed for certain costs incurred in managing certain of its unconsolidated real estate entities. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $4.2 million, $1.1 million and $0, respectively, of such reimbursement income in management services reimbursement income—unconsolidated real estate entities on the Consolidated Statement of Operations. Hollywood Media Portfolio Debt In August 2021, the consolidated joint venture that owns the Hollywood Media Portfolio refinanced the mortgage loan secured by the portfolio, increasing the borrowing capacity to $1.1 billion. In connection with this transaction, the Company purchased bonds comprising the loan in the amount of $209.8 million and concurrently redeemed bonds comprising the previous loan in the amount of $209.8 million. Related Party Leases The Company’s wholly-owned subsidiary is party to long-term operating lease agreements with an unconsolidated joint venture for office space and fitness and conference facilities. As of December 31, 2022, the Company’s right-of-use assets and lease liabilities related to these lease obligations were $6.1 million and $6.2 million, respectively, as compared to right-of-use assets and lease liabilities of $7.3 million and $7.4 million, respectively, as of December 31, 2021. During the years ended December 31, 2022 and 2021, the Company recognized $1.0 million and $1.0 million, respectively, of related rental expense in management services expense—unconsolidated real estate entities on the Consolidated Statements of Operations related to these leases. There was no rental expense recognized during the year ended December 31, 2020. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Fund Investments The Company invests in several non-real estate funds with an aggregate commitment to contribute up to $48.0 million. As of December 31, 2022, the Company has contributed $33.2 million to these funds, net of recallable distributions, with $14.8 million remaining to be contributed. Legal From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of December 31, 2022, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Letters of Credit As of December 31, 2022, the Company had $3.9 million in outstanding letters of credit under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements. Contractual Obligations The Company has entered into a number of construction agreements related to its development activities at various properties and its obligations under executed leases. As of December 31, 2022, the Company had $254.2 million in related commitments. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Year Ended December 31, 2022 2021 2020 Cash paid for interest, net of capitalized interest $ 133,869 $ 112,043 $ 103,099 Non-cash investing and financing activities Note payable issued as consideration in a business combination $ 160,000 $ — $ — Accounts payable and accrued liabilities for real estate investments $ 150,408 $ 193,521 $ 136,959 Lease liabilities recorded in connection with right-of-use assets $ 100,805 $ 26,824 $ — Ground lease remeasurement $ 23,177 $ — $ — Earnout liability recognized as contingent consideration for business combination $ — $ 11,383 $ — Series C preferred stock dividend accrual $ — $ 2,281 $ — Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Year Ended December 31, 2022 2021 2020 Cash paid for interest, net of capitalized interest $ 133,869 $ 112,043 $ 103,099 Non-cash investing and financing activities Note payable issued as consideration in a business combination $ 160,000 $ — $ — Accounts payable and accrued liabilities for real estate investments $ 150,408 $ 193,521 $ 136,959 Lease liabilities recorded in connection with right-of-use assets $ 100,805 $ 26,824 $ — Ground lease remeasurement $ 23,177 $ — $ — Earnout liability recognized as contingent consideration for business combination $ — $ 11,383 $ — Series C preferred unit dividend accrual $ — $ 2,281 $ — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 3, 2023, the Company repaid its $110.0 million Series A notes in full. On January 12, 2023, the Company entered into an interest rate swap agreement to fix SOFR at a rate of 3.75% effective as of February 1, 2023 through October 18, 2025 on $172.9 million of indebtedness, which amount corresponds to our pro rata share of the loan secured by the 1918 Eighth property. On January 12, 2023, the Company entered into an interest rate swap agreement to fix SOFR at a rate of 3.31% effective as of August 15, 2023 through June 15, 2026 on $351.2 million of indebtedness, which amount corresponds to our pro rata share of the loan secured by the Hollywood Media Portfolio, net of the amount of such loan held by the Company. On February 6, 2023, the Company sold its Skyway Landing property for $102.0 million before certain credits, prorations and closing costs. The proceeds were used to repay $102.0 million on the Company’s unsecured revolving credit facility. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Schedule III — Real Estate and Accumulated Depreciation December 31, 2022 (In thousands) Initial Costs Costs Capitalized Subsequent to Acquisition Total Costs Year Built / Renovated Property name Encumbrances Land Building & Improvements Land Building & Improvements Total Accumulated Depreciation (1) Year Acquired Office 875 Howard, San Francisco Bay Area, CA $ — $ 18,058 $ 41,046 $ 34,225 $ 18,058 $ 75,271 $ 93,329 $ (27,487) Various 2007 6040 Sunset, Los Angeles, CA (2) 1,100,000 6,599 27,187 30,493 6,599 57,680 64,279 (23,323) 2008 2008 ICON, Los Angeles, CA (2) — — — 164,023 — 164,023 164,023 (32,911) 2017 2008 CUE, Los Angeles, CA (2) — — — 49,573 — 49,573 49,573 (8,089) 2017 2008 EPIC, Los Angeles, CA (2) — 10,606 — 215,489 10,606 215,489 226,095 (25,296) 2019 2008 1455 Market, San Francisco Bay Area, CA — 41,226 34,990 106,171 41,226 141,161 182,387 (72,938) 1976 2010 Rincon Center, San Francisco Bay Area, CA — 58,251 110,656 73,587 58,251 184,243 242,494 (55,427) 1940/1989 2010 10950 Washington, Los Angeles, CA — 17,979 25,110 2,174 17,979 27,284 45,263 (8,309) 1957/1974 2010 604 Arizona, Los Angeles, CA — 5,620 14,745 4,493 5,620 19,238 24,858 (6,673) 1950/2005 2011 275 Brannan, San Francisco Bay Area, CA — 4,187 8,063 13,785 4,187 21,848 26,035 (10,271) 1905 2011 625 Second, San Francisco Bay Area, CA — 10,744 42,650 5,983 10,744 48,633 59,377 (14,224) 1906/1999 2011 10900 Washington, Los Angeles, CA — 1,400 1,200 248 1,400 1,448 2,848 (440) 1973 2012 901 Market, San Francisco Bay Area, CA — 17,882 79,305 22,424 17,882 101,729 119,611 (29,069) 1912/1985 2012 Element LA, Los Angeles, CA 168,000 79,769 19,755 96,382 79,769 116,137 195,906 (29,075) 1949 2012 2013 3401 Exposition, Los Angeles, CA — 14,120 11,319 12,160 14,120 23,479 37,599 (7,665) 1961 2013 505 First, Greater Seattle, WA — 22,917 133,034 13,280 22,917 146,314 169,231 (34,708) Various 2013 83 King, Greater Seattle, WA — 12,982 51,403 12,434 12,982 63,837 76,819 (16,874) Various 2013 Met Park North, Greater Seattle, WA — 28,996 71,768 2,211 28,996 73,979 102,975 (21,333) 2000 2013 411 First, Greater Seattle, WA — 27,684 29,824 25,201 27,684 55,025 82,709 (15,265) Various 2014 450 Alaskan, Greater Seattle, WA — — — 86,952 — 86,952 86,952 (14,484) Various 2014 95 Jackson, Greater Seattle, WA — — — 17,284 — 17,284 17,284 (2,552) Various 2014 Palo Alto Square, San Francisco Bay Area, CA — — 326,033 48,799 — 374,832 374,832 (102,650) 1971 2015 3400 Hillview, San Francisco Bay Area, CA — — 159,641 (4,948) — 154,693 154,693 (47,799) 1991 2015 Foothill Research Center, San Francisco Bay Area, CA — — 133,994 16,723 — 150,717 150,717 (53,489) 1991 2015 Page Mill Center, San Francisco Bay Area, CA — — 147,625 25,259 — 172,884 172,884 (49,358) 1970/2016 2015 Clocktower Square, San Francisco Bay Area, CA — — 93,949 17,221 — 111,170 111,170 (26,027) 1983 2015 3176 Porter, San Francisco Bay Area, CA — — 34,561 1,073 — 35,634 35,634 (10,910) 1991 2015 Towers at Shore Center, San Francisco Bay Area, CA — 72,673 144,188 23,951 72,673 168,139 240,812 (44,268) 2001 2015 Initial Costs Costs Capitalized Subsequent to Acquisition Total Costs Year Built / Renovated Property name Encumbrances Land Building & Improvements Land Building & Improvements Total Accumulated Depreciation (1) Year Acquired Skyway Landing, San Francisco Bay Area, CA — 37,959 63,559 5,014 37,959 68,573 106,532 (14,384) 2001 2015 Shorebreeze, San Francisco Bay Area, CA — 69,448 59,806 23,217 69,448 83,023 152,471 (20,525) 1985/1989 2015 555 Twin Dolphin, San Francisco Bay Area, CA — 40,614 73,457 17,062 40,614 90,519 131,133 (20,038) 1989 2015 333 Twin Dolphin, San Francisco Bay Area, CA — 36,441 64,892 20,418 36,441 85,310 121,751 (19,918) 1985 2015 Metro Center, San Francisco Bay Area, CA — — 313,683 65,028 — 378,711 378,711 (90,199) Various 2015 Concourse, San Francisco Bay Area, CA — 45,085 224,271 56,834 45,085 281,105 326,190 (66,571) Various 2015 Gateway, San Francisco Bay Area, CA — 33,117 121,217 54,749 33,117 175,966 209,083 (48,494) Various 2015 Metro Plaza, San Francisco Bay Area, CA — 16,038 106,156 67,792 16,038 173,948 189,986 (32,971) 1986 2015 1740 Technology, San Francisco Bay Area, CA — 8,052 49,486 13,209 8,052 62,695 70,747 (12,550) 1985 2015 Skyport Plaza, San Francisco Bay Area, CA — 29,033 153,844 6,132 29,033 159,976 189,009 (31,845) 2000/2001 2015 Techmart, San Francisco Bay Area, CA — — 66,660 21,335 — 87,995 87,995 (21,854) 1986 2015 Fourth & Traction, Los Angeles, CA — 12,140 37,110 69,146 12,140 106,256 118,396 (23,767) Various 2015 Maxwell, Los Angeles, CA — 13,040 26,960 57,764 13,040 84,724 97,764 (14,493) Various 2015 11601 Wilshire, Los Angeles, CA — 28,978 321,273 62,801 28,978 384,074 413,052 (75,966) 1983 2016 2017 Hill7, Greater Seattle, WA 101,000 36,888 137,079 19,528 36,888 156,607 193,495 (34,045) 2015 2016 Page Mill Hill, San Francisco Bay Area, CA — — 131,402 13,058 — 144,460 144,460 (29,477) 1975 2016 Harlow, Los Angeles, CA — 7,455 — 80,474 7,455 80,474 87,929 (4,517) N/A 2017 One Westside, Los Angeles, CA (4) 316,602 110,438 35,011 362,729 110,438 397,740 508,178 (28,980) 1985 2018 10850 Pico, Los Angeles, CA (4) — 34,682 16,313 5,998 34,682 22,311 56,993 (1,657) 1985 2018 Ferry Building, San Francisco Bay Area, CA (5) — — 268,292 33,224 — 301,516 301,516 (38,387) 1898/2003 2018 1918 Eighth, Greater Seattle, WA 314,300 38,476 545,773 31,400 38,476 577,173 615,649 (38,267) 2009 2020 5 th & Bell, Greater Seattle, WA — 20,867 82,072 15,511 20,867 97,583 118,450 (4,705) 2002 2021 Washington 1000, Greater Seattle, WA (3) — 59,987 11,053 80,278 59,987 91,331 151,318 — Under development 2022 5801 Bobby Foster Road, Albuquerque, NM — 2,189 6,268 116 2,189 6,384 8,573 (89) 2008 2022 Sunset Gower Studios, Los Angeles, CA (2)(6) — 101,476 64,697 79,189 101,476 143,886 245,362 (41,308) Various 2007 2011 2012 Sunset Bronson Studios, Los Angeles, CA (2) — 67,092 32,374 50,030 67,092 82,404 149,496 (29,129) Various 2008 Sunset Las Palmas Studios, Los Angeles, CA (2) — 134,488 104,392 51,001 134,488 155,393 289,881 (20,605) Various 2017 2018 Various (7) — — — 48,595 — 48,595 48,595 — N/A 2022 TOTAL $ 1,999,902 $ 1,435,676 $ 4,859,146 $ 2,528,282 $ 1,435,676 $ 7,387,428 $ 8,823,104 $ (1,555,655) _____________ 1. The Company computes depreciation using the straight-line method over the estimated useful lives over the shorter of the ground lease term or 39 years for building and improvements, 15 years for land improvements and over the shorter of asset life or life of the lease for tenant and leasehold improvements. 2. These properties are encumbered by a $1.1 billion mortgage loan. Refer to Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 8 to the Consolidated Financial Statements-Debt” for additional information on secured debt. 3. This asset is currently under development. 4. These properties are encumbered by a $316.6 million construction loan with borrowing capacity of up to $414.6 million. Refer to Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 8 to the Consolidated Financial Statements-Debt” for additional information on secured debt. 5. This property is encumbered by a $66.1 million debt due to our joint venture partner. Refer to Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 8 to the Consolidated Financial Statements-Debt” for additional information on joint venture partner debt. 6. During the year ended December 31, 2022, the Company purchased a parcel of land at Sunset Gower Studios that was previously encumbered by a ground lease for a total purchase price of $22.2 million. 7. Represents leasehold improvements capitalized in connection with the Company’s leasehold interests in 27 sound stages. The aggregate gross cost of property included above for federal income tax purposes approximated $8.4 billion, unaudited as of December 31, 2022. The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2020 to December 31, 2022: Year Ended December 31, 2022 2021 2020 Total investment in real estate, beginning of year $ 8,361,477 $ 8,215,017 $ 7,269,128 Additions during period: Asset acquisitions 101,653 102,939 584,250 Business acquisitions 47,741 — — Improvements, capitalized costs 553,327 394,633 415,602 Total additions during period 702,721 497,572 999,852 Deductions during period Disposals (fully depreciated assets and early terminations) (51,812) (56,166) (53,963) Impairment loss (17,636) (2,762) — Cost of property sold (171,646) — — Total deductions during period (241,094) (58,928) (53,963) Ending balance, before reclassification to assets associated with real estate held for sale 8,823,104 8,653,661 8,215,017 Reclassification to assets associated with real estate held for sale (106,532) (292,184) — TOTAL INVESTMENT IN REAL ESTATE, END OF YEAR $ 8,716,572 $ 8,361,477 $ 8,215,017 Total accumulated depreciation, beginning of year $ (1,283,774) $ (1,102,748) $ (898,279) Additions during period: Depreciation of real estate (368,376) (292,802) (258,732) Total additions during period (368,376) (292,802) (258,732) Deductions during period: Deletions 55,939 56,370 54,263 Write-offs due to sale 40,556 — — Total deductions during period 96,495 56,370 54,263 Ending balance, before reclassification to assets associated with real estate held for sale (1,555,655) (1,339,180) (1,102,748) Reclassification to assets associated with real estate held for sale 14,384 55,406 — TOTAL ACCUMULATED DEPRECIATION, END OF YEAR $ (1,541,271) $ (1,283,774) $ (1,102,748) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any references to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). |
Principles of Consolidation | The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, the fair value measurement of contingent consideration, assets acquired and liabilities assumed in business combination transactions, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and the valuation of performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. |
Investment in Real Estate Properties | Acquisitions The Company evaluates each acquisition to determine if the integrated set of assets and activities acquired meets the definition of a business and needs to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair values of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers commissions, legal and other leasing-related costs. The fair value of debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Investment in Real Estate Properties Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity. Costs associated with development and redevelopment that are capitalized include interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. |
Business Combinations | Business Combinations From time to time, we may enter into business combinations. In accordance with ASC 805, Business Combinations , the Company applies the acquisition method for acquisitions that meet the definition of a business combination. Under the acquisition method, the Company estimates the fair value of the identifiable assets and liabilities of the acquired entity on the acquisition date. Acquired intangible assets are valued using different methods under the income approach, including the excess earnings method for customer relationships, the relief-from-royalty method for trade names, and the lost profits method for non-compete agreements. The fair values of acquired “above- and below-” market leases are estimated based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Acquired property, plant and equipment is valued using the cost approach, including consideration of reproduction or replacement costs, economic depreciation and obsolescence. We measure goodwill as the excess of consideration transferred over the net of the acquisition date fair values of the identifiable assets acquired and liabilities assumed. Goodwill is assigned to each reporting unit that is expected to benefit from the synergies of the business combination. Acquisition-related expenses and transaction costs associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. |
Operating Properties | The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated Useful Life (Years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant and leasehold improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of a lease, the amortization of intangible assets and liabilities is accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. |
Held for sale | The Company classifies properties as held for sale when certain criteria set forth in ASC 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale on the Consolidated Balance Sheets for all periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. The estimated fair value is generally based on a purchase and sale agreement, letter of intent, or a broker estimated value of the property. The Company will recognize an impairment loss on real estate assets held for sale when the carrying value is greater than the fair value, which is based on the estimated sales price of the property, which is classified within Level 2 of the fair value hierarchy. The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based Level 2 inputs. According to ASC 205, Presentation of Financial Statements |
Impairment of Long-Lived Assets | The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties based on Level 1 or Level 2 inputs, less estimated costs to sell. |
Goodwill and Acquired Intangible Assets | Goodwill is an unidentifiable intangible asset and is recognized as a residual, generally measured as the excess of consideration transferred in a business combination over the identifiable assets acquired and liabilities assumed. Goodwill is assigned to reporting units that are expected to benefit from the synergies of the business combination. The Company tests its goodwill and indefinite-lived intangible assets for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. Goodwill is tested for impairment at the reporting unit to which it is assigned, which can be an operating segment or one level below an operating segment. The Company has three operating segments: the management entity, Office and Studio, each of which is a reporting unit. The Studio reporting unit consists of the Zio Entertainment Network, LLC (“Zio”) and Star Waggons, LLC (“Star Waggons”) businesses acquired during the year ended December 31, 2021 and the Quixote Studios, LLC (“Quixote”) business acquired during the year ended December 31, 2022. The assessment of goodwill for impairment may initially be performed based on qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value, including goodwill. If so, a quantitative assessment is performed, and to the extent the carrying value of the reporting unit exceeds its fair value, impairment is recognized for the excess up to the amount of goodwill assigned to the reporting unit. Alternatively, the Company may bypass a qualitative assessment and proceed directly to a quantitative assessment. A qualitative assessment considers various factors such as macroeconomic, industry and market conditions to the extent they affect the earnings performance of the reporting unit, changes in business strategy and/or management of the reporting unit, changes in composition or mix of revenues and/or cost structure of the reporting unit, financial performance and business prospects of the reporting unit, among other factors. |
Cash, Cash Equivalents and Restricted Cash | Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. |
Receivables | The Company accounts for receivables related to rental revenues according to ASC 842, Leases (“ASC 842”). The guidance requires the Company to assess, at lease commencement and subsequently, collectability of future lease payments from its tenants. If the Company determines collectability is not probable, it recognizes an adjustment to lower income from rentals. For amounts deemed probable of collection, the Company may also record an allowance under other authoritative GAAP based on the evaluation of individual receivables, including specific credit enhancements and other relevant factors. |
U.S. Government Securities | As of December 31, 2021, the Company held U.S. Government securities related to assumed debt held by a trust subsidiary. These securities were considered held to maturity investments and were carried at amortized cost on the Consolidated Balance Sheets. The Company had both the intent and ability to hold to maturity. The remaining securities matured during the year ended December 31, 2022, resulting in a balance of $0 as of December 31, 2022, as compared to a balance of $129.3 million as of December 31, 2021. |
Non-Real Estate Investments | The Company measures its investments in common stock and convertible preferred stock at fair value based on Level 1 and Level 2 inputs, respectively. The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value (“NAV”) practical expedient and uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value of the investment. Changes in the fair value of these non-real estate investments are included in unrealized (loss) gain on non-real estate investments on the Consolidated Statements of Operations. The Company recognized a net unrealized loss of $0.2 million for the year ended December 31, 2022, a net unrealized gain of $14.9 million for the year ended December 31, 2021 and a net unrealized loss of $0.9 million for the year ended December 31, 2020 due to the observable changes in fair value. Over the life of the investments, the Company has recognized a net unrealized gain of $13.8 million due to the observable changes in fair value. |
Stock Purchase Warrant | The Company holds an investment in a stock purchase warrant that gives the Company the right to purchase a fixed number of shares of common stock of a non-real estate investee. The warrant meets the definition of a derivative and is measured at fair value based on Level 2 inputs. Changes in the fair value of the derivative asset are included in unrealized (loss) gain on non-real estate investments on the Consolidated Statements of Operations. |
Lease Accounting | The Company accounts for its leases under ASC 842, which requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The practical expedient was elected only for the Company’s leases related to the office properties. For the Company’s studio properties, the timing and pattern of the transfer of the lease components and non-lease components for studio properties are not the same and therefore the Company did not elect this practical expedient for the Company’s studio properties. The standalone selling price related to the studio non-lease components is readily available and does not require estimates. |
Lessee Accounting | The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases, sound stages, office leases and other facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less, the Company makes an accounting policy election by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term.ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Variable lease payments are excluded from the lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the lease liabilities was 5.6% as of December 31, 2022. ROU assets are recognized in the amount of the initial lease liability, adjusted to include lease prepayments and initial direct costs and exclude lease incentives. ROU assets acquired in connection with business combination transactions are also adjusted for “above- and below-” market lease terms. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 23 years as of December 31, 2022. |
Lessor Accounting | With the election of the lessor practical expedient, the presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). ASC 842 defines initial direct costs as only the incremental costs of signing a lease. Internal direct compensation costs and external legal fees related to the execution of successful lease agreements that do not meet the definition of initial direct costs under ASC 842 are accounted for as office operating expense or studio operating expense in the Company’s Consolidated Statements of Operations. |
Revenue Recognition | Revenue Stream Components Financial Statement Location Rental revenues Office, stage and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of power, HVAC and telecommunications (i.e., telephone and internet) and lighting, equipment and vehicle rentals Studio segment: service and other revenues Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service and other revenues Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Management fee income Income derived from management services provided to unconsolidated joint venture entities Fee income Management services reimbursement income Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities Management services reimbursement income—unconsolidated real estate entities The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company does not account for lease concessions related to the effects of the COVID-19 pandemic as lease modifications to the extent that the concessions are granted as payment deferrals and total payments remain substantially the same during the lease term. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues include parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues, other revenues, management fee income and management services reimbursement income are accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Year Ended December 31, 2022 2021 2020 Ancillary revenues $ 107,075 $ 46,984 $ 16,781 Other revenues $ 23,118 $ 15,168 $ 16,582 Studio-related tenant recoveries $ 1,951 $ 1,962 $ 1,560 Management fee income $ 7,972 $ 3,221 $ 2,815 Management services reimbursement income $ 4,163 $ 1,132 $ — The following table summarizes the Company’s receivables that are accounted for under ASC 606: December 31, 2022 December 31, 2021 Ancillary revenues $ 15,503 $ 7,381 Other revenues $ 1,193 $ 1,078 |
Deferred Financing Costs and Debt Discount/Premium | Deferred financing costs are amortized over the contractual loan term into interest expense on the Consolidated Statements of Operations. Deferred financing costs, and related amortization, related to the unsecured revolving credit facility and undrawn term loans are presented within prepaid expenses and other assets, net on the Consolidated Balance Sheets. All other deferred financing costs and related amortization are included within the respective debt line items on the Consolidated Balance Sheets. Debt discounts and premiums are amortized over the contractual loan term into interest expense on the Consolidated Statements of Operations. The amortization of discounts is recorded as additional interest expense and the accretion of premiums is recorded as a reduction to interest expense. |
Derivative Instruments | The Company manages interest rate risk associated with borrowings by entering into derivative instruments. The Company recognizes all derivative instruments on the Consolidated Balance Sheets on a gross basis at fair value. Derivative instruments are adjusted to fair value at the balance sheet date. The change in the fair value of derivatives designated as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. The change in the fair value derivatives not designated as hedges is recorded within earnings immediately. |
Stock-Based Compensation | Compensation cost of restricted stock, restricted stock units and performance units under the Company’s equity incentive award plans are accounted for under ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company accounts for forfeitures of awards as they occur. Share-based payments granted to non-employees are accounted for in the same manner as share-based payments granted to employees. |
Income Taxes | In general, the Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market, Hill7, Ferry Building and 1918 Eighth properties, REITs) for federal income tax purposes. In the case of the Bentall Centre property and the Sunset Waltham Cross Studios development, the Company owns its interest in the properties through non-U.S. entities treated as TRSs for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. The Company believes that it has operated in a manner that has allowed the Company to qualify as a REIT for federal income tax purposes commencing with such taxable year, and the Company intends to continue operating in such manner. To qualify as a REIT, the Company is required to distribute at least 90% of its REIT taxable income, excluding net capital gains, to the Company’s stockholders and to meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that it continues to qualify for taxation as a REIT, the Company is generally not subject to corporate-level income tax on the earnings distributed currently to its stockholders. If the Company were to fail to qualify as a REIT in any taxable year, and were unable to avail itself of certain savings provisions set forth in the Code, all of its taxable income would be subject to federal corporate income tax. Unless entitled to relief under specific statutory provisions, the Company would be ineligible to elect to be treated as a REIT for the four taxable years following the year for which the Company loses its qualification. It is not possible to state whether in all circumstances the Company would be entitled to this statutory relief. The Company may acquire direct or indirect interests in one or more Subsidiary REITs. A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to the Company. If a subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to federal income tax, (ii) shares in such REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless the Company could avail itself of certain relief provisions. The Company believes that its operating partnership is properly treated as a partnership for federal income tax purposes. As a partnership, the Company’s operating partnership is not subject to federal income tax on its income. Instead, each of its partners, including the Company, is allocated, and may be required to pay tax with respect to, its share of the operating partnership’s income. As such, no provision for federal income taxes has been included for the operating partnership. The Company has elected, together with certain of the Company’s subsidiaries, to treat such subsidiaries as taxable REIT subsidiaries (“TRSs”) for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. The Company recognized an income tax benefit of $7.5 million for the year ended December 31, 2022, an income tax provision of $1.9 million for the year ended December 31, 2021 and an income tax benefit of $1.0 million for the year ended December 31, 2020 within other income (expense) on the Consolidated Statements of Operations. Deferred tax assets and liabilities are recognized for the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. As of December 31, 2022, the Company had recorded a net deferred tax asset of $5.3 million, consisting of gross deferred tax assets of $16.9 million and gross deferred tax liabilities of $11.6 million, within prepaid expenses and other assets, net on the Consolidated Balance Sheet. As of December 31, 2021, the Company had recorded a net deferred tax liability of $0.7 million, consisting of gross deferred tax assets of $6.1 million and deferred tax liabilities of $6.8 million, within accounts payable, accrued liabilties and other on the Consolidated Balance Sheet. Significant components of the Company’s deferred tax assets and liabilities relate to depreciation and amortization, unrealized gains and losses on non-real estate investments and net operating loss carryforwards. As of December 31, 2022, the Company had not recorded a valuation allowance against its deferred tax assets. As of December 31, 2021, the Company had recorded a valuation allowance of $1.2 million against its deferred tax assets. The Company is subject to the statutory requirements of the states in which it conducts business. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2022, the Company has not established a liability for uncertain tax positions. The Company and certain of its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRSs are no longer subject to tax examinations by tax authorities for years prior to 2018. The Company has assessed its tax positions for all open years, which as of December 31, 2022 included 2019 to 2021 for Federal purposes and 2018 to 2021 for state purposes, and concluded that there are no material uncertainties to be recognized. |
Fair Value of Assets and Liabilities | The Company measures certain financial instruments at fair value on a recurring basis while certain financial instruments and balances are measured at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third party source to determine fair value and classifies such items in Level 1 or Level 2. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's portfolio | The Company’s portfolio consists of properties primarily located throughout the United States, Western Canada and Greater London, United Kingdom. The following table summarizes the Company’s portfolio as of December 31, 2022: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 14,338,510 Studio 4 1,291,260 Land 5 1,966,242 Total consolidated portfolio 60 17,596,012 Unconsolidated portfolio (1) Office (2) 1 1,511,723 Studio (3) 1 241,000 Land (4) 2 1,617,347 Total unconsolidated portfolio 4 3,370,070 TOTAL (5) 64 20,966,082 _________________ 1. The Company owns 20% of the unconsolidated joint venture entity that owns the Bentall Centre property, 50% of the unconsolidated joint venture entity that owns the Sunset Glenoaks Studios development and 35% of the unconsolidated joint venture entity that owns the future Sunset Waltham Cross Studios development. The square footage shown above represents 100% of the properties. See Notes 2 and 6 for details. 2. Includes Bentall Centre. 3. Includes Sunset Glenoaks Studios. 4. Includes land for the Burrard Exchange at Bentall Centre and Sunset Waltham Cross Studios. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2022, the operating partnership has determined that 13 of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % Sunset Bronson Entertainment Properties, LLC Sunset Bronson Studios, ICON, CUE 51.0 % Sunset Gower Entertainment Properties, LLC Sunset Gower Studios 51.0 % Sunset 1440 North Gower Street, LLC Sunset Gower Studios 51.0 % Sunset Las Palmas Entertainment Properties, LLC Sunset Las Palmas Studios, Harlow 51.0 % Sunset Services Holdings, LLC None (1) 51.0 % Sunset Studios Holdings, LLC EPIC 51.0 % Hudson Media and Entertainment Management, LLC None (2) 51.0 % Hudson 6040 Sunset, LLC 6040 Sunset 51.0 % Hudson 1918 Eighth, L.P. 1918 Eighth 55.0 % __________________ 1. Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 2. Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). The following table summarizes the Company’s investments in unconsolidated joint ventures: Property Property Type Submarket Ownership Interest Functional Currency Sunset Waltham Cross Studios Development Broxbourne, United Kingdom 35% Pound sterling (1) Sunset Glenoaks Studios Development Los Angeles 50% U.S. dollar (2)(3) Bentall Centre Operating Property Downtown Vancouver 20% Canadian dollar (2)(4) __________________ 1. On July 29, 2021, the Company purchased 35% of the ownership interests in the joint venture that owns the Sunset Waltham Cross Studios development. The Company also owns 35% of the ownership interests in the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2. The Company serves as the operating member of this joint venture. 3. The Company has provided various guarantees for the joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. 4. The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $98.1 million. |
Schedule of Costs Capitalized | The Company recognized the following capitalized costs associated with development and redevelopment activities: Year Ended December 31, 2022 2021 2020 Capitalized personnel costs $ 18,098 $ 16,728 $ 15,843 Capitalized interest $ 18,031 $ 21,689 $ 19,509 |
Property, Plant and Equipment Net | The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated Useful Life (Years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant and leasehold improvements Shorter of the estimated useful life or the lease term The following table summarizes the Company’s non-real estate property, plant and equipment, net as of: December 31, 2022 December 31, 2021 Trailers $ 68,973 $ 35,181 Production equipment 36,019 — Trucks and other vehicles 20,306 12,204 Leasehold improvements 16,993 15,267 Furniture, fixtures and equipment 5,849 4,592 Other equipment 5,693 4,605 Non-real estate property, plant and equipment, at cost 153,833 71,849 Accumulated depreciation (23,544) (13,380) NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET $ 130,289 $ 58,469 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2022 2021 2020 BEGINNING OF THE PERIOD Cash and cash equivalents $ 96,555 $ 113,686 $ 46,224 Restricted cash 100,321 35,854 12,034 TOTAL $ 196,876 $ 149,540 $ 58,258 END OF THE PERIOD Cash and cash equivalents $ 255,761 $ 96,555 $ 113,686 Restricted cash 29,970 100,321 35,854 TOTAL $ 285,731 $ 196,876 $ 149,540 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2022 2021 2020 BEGINNING OF THE PERIOD Cash and cash equivalents $ 96,555 $ 113,686 $ 46,224 Restricted cash 100,321 35,854 12,034 TOTAL $ 196,876 $ 149,540 $ 58,258 END OF THE PERIOD Cash and cash equivalents $ 255,761 $ 96,555 $ 113,686 Restricted cash 29,970 100,321 35,854 TOTAL $ 285,731 $ 196,876 $ 149,540 |
Schedule of Prepaid Expenses and Other Assets, Net | The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2022 December 31, 2021 Non-real estate investments $ 47,329 $ 31,447 Interest rate derivative assets 9,292 368 Prepaid insurance 6,530 5,442 Deferred financing costs, net 5,824 7,750 Inventory 4,914 1,578 Prepaid property tax 2,041 2,192 Stock purchase warrant 95 1,664 Deposits and pre-development costs for future acquisitions — 47,605 Other 22,812 20,954 PREPAID EXPENSES AND OTHER ASSETS, NET $ 98,837 $ 119,000 |
Schedule of Revenue Streams | Revenue Stream Components Financial Statement Location Rental revenues Office, stage and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of power, HVAC and telecommunications (i.e., telephone and internet) and lighting, equipment and vehicle rentals Studio segment: service and other revenues Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service and other revenues Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Management fee income Income derived from management services provided to unconsolidated joint venture entities Fee income Management services reimbursement income Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities Management services reimbursement income—unconsolidated real estate entities The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Year Ended December 31, 2022 2021 2020 Ancillary revenues $ 107,075 $ 46,984 $ 16,781 Other revenues $ 23,118 $ 15,168 $ 16,582 Studio-related tenant recoveries $ 1,951 $ 1,962 $ 1,560 Management fee income $ 7,972 $ 3,221 $ 2,815 Management services reimbursement income $ 4,163 $ 1,132 $ — The following table summarizes the Company’s receivables that are accounted for under ASC 606: December 31, 2022 December 31, 2021 Ancillary revenues $ 15,503 $ 7,381 Other revenues $ 1,193 $ 1,078 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the Quixote Acquisition Date fair value of the consideration transferred in connection with the acquisition: Cash $ 199,098 Seller note 160,000 Total consideration $ 359,098 The following table summarizes the Acquisition Date fair value of the consideration transferred in connection with the acquisitions: Zio Star Waggons Cash $ 117,198 $ 92,656 Contingent consideration 22,543 — Total consideration $ 139,741 $ 92,656 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the Quixote Acquisition Date, which are provisional measurements and subject to change: Cash and cash equivalents $ 5,780 Accounts receivable 7,238 Prepaid expenses and other assets 3,788 Investment in real estate (1) 47,741 Non-real estate property, plant and equipment 65,939 Intangible assets 76,900 Operating lease right-of-use assets 106,115 Total assets acquired 313,501 Accounts payable, accrued liabilities and other $ 12,700 Operating lease liabilities 95,112 Total liabilities assumed 107,812 Net identifiable assets acquired $ 205,689 Goodwill 153,409 NET ASSETS ACQUIRED $ 359,098 _____________ 1. Represents leasehold improvements related to Quixote’s leasehold interests in studio properties. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the respective Acquisition Dates: Zio Star Waggons Cash and cash equivalents $ 1,084 $ 300 Accounts receivable 3,001 4,185 Prepaid expenses and other assets 1,509 1,605 Non-real estate property, plant and equipment 23,399 25,000 Intangible assets 41,670 33,480 Total assets acquired 70,663 64,570 Accounts payable, accrued liabilities and other $ 1,498 $ 1,913 Intangible liabilities — 110 Total liabilities assumed 1,498 2,023 Net identifiable assets acquired $ 69,165 $ 62,547 Goodwill 70,576 30,109 NET ASSETS ACQUIRED $ 139,741 $ 92,656 |
Business acquisition, pro Forma information | The amounts of revenue and loss from operations of Quixote included in the Company’s Consolidated Statement of Operations from the Quixote Acquisition Date to December 31, 2022 are as follows: Revenue $ 33,200 Loss from operations $ (5,290) The following represents the pro forma Consolidated Statements of Operations as if the results of operations of Quixote had been included in the consolidated results of the Company for the years ended December 31, 2022 and 2021: Year Ended Year Ended Revenue $ 1,090,857 $ 982,985 Net (loss) income $ (17,715) $ 38,508 The amounts of revenue and income from operations of Zio and Star Waggons included in the Company’s Consolidated Statements of Operations from each respective Acquisition Date to December 31, 2021 are as follows: Zio Star Waggons Revenue $ 11,419 $ 9,651 Income from operations $ 2,395 $ 2,947 The following represents the pro forma Consolidated Statements of Operations as if the results of operations of Zio and Star Waggons had been included in the consolidated results of the Company for the years ended December 31, 2021 and 2020: Year Ended Year Ended Revenue $ 933,229 $ 830,463 Net income $ 38,884 $ 8,159 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Investment in Real Estate | The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2022 December 31, 2021 Land $ 1,397,714 $ 1,313,385 Building and improvements 6,273,655 6,241,254 Tenant and leasehold improvements 868,193 786,991 Furniture and fixtures 9,639 14,020 Property under development 167,371 5,827 INVESTMENT IN REAL ESTATE, AT COST $ 8,716,572 $ 8,361,477 |
Schedule of Allocation of Acquisition Cost | The following table represents the Company’s final purchase price accounting for the asset acquisitions completed in 2022: Washington 1000 Sunset Gower Studios Land 5801 Bobby Foster Road TOTAL ACQUISITION COST (1) $ 86,313 $ 22,156 $ 8,457 Relative fair value allocation Land $ 59,987 $ 22,156 $ 2,189 Building and improvements 11,053 — 6,268 Parking easement (2) 15,273 — — TOTAL $ 86,313 $ 22,156 $ 8,457 _____________ 1. Includes capitalized transaction-related expenses. 2. Parking easement has an indefinite useful life and is recorded in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. |
Real Estate Acquisitions, Allocation of Consideration | The following table represents the Company’s final purchase price accounting for the 5 th & Bell acquisition: TOTAL ACQUISITION COST (1) $ 118,907 Relative fair value allocation Investment in real estate $ 102,939 Deferred leasing costs and in-place lease intangibles (2)(3) 10,443 Below-market ground leases (2)(3) 10,844 Below-market leases (3)(4) (5,319) TOTAL $ 118,907 _____________ 1. Includes capitalized transaction-related expenses. 2. Included in deferred leasing costs and intangible assets, net on the Consolidated Balance Sheet. 3. The weighted-average amortization period of these intangible assets and liabilities is 9.4 years (before any renewal or extension options). 4. Included in intangible liabilities, net on the Consolidated Balance Sheet. |
Real Estate Dispositions | Property Segment Date of Disposition Square Feet Sales Price (1) (in millions) Del Amo Office 8/5/2022 113,000 $ 2.8 Northview Office 8/30/2022 179,985 46.0 6922 Hollywood Office 10/20/2022 205,189 96.0 TOTAL DISPOSITIONS IN 2022 498,174 $ 144.8 _____________ 1. Represents gross sales price before certain credits, prorations and closing costs. Property Segment Submarket Square Feet Status as of December 31, 2022 Status as of December 31, 2021 Skyway Landing Office Redwood Shores 246,997 Held for Sale (1) Held for Sale Del Amo Office Torrance 113,000 Sold Held for Sale Northview Office Lynnwood 179,985 Sold Held for Sale 6922 Hollywood Office Hollywood 205,189 Sold Held for Sale _____________ 1. The property was sold on February 6, 2023 for $102.0 million before certain credits, prorations and closing costs. |
Held For Sale | The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2022: Skyway Landing ASSETS Investment in real estate, net $ 92,148 Accounts receivable, net 112 Straight-line rent receivables, net 460 Deferred leasing costs and intangible assets, net 501 Prepaid expenses and other assets, net 17 ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 93,238 LIABILITIES Accounts payable, accrued liabilities and other $ 400 Security deposits and prepaid rent 265 LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 665 The following table summarizes the components of assets and liabilities associated with real estate held for sale as of December 31, 2021: Northview Center Skyway Landing Del Amo 6922 Hollywood ASSETS Investment in real estate, net $ 40,338 $ 89,873 $ 15,213 $ 91,353 Accounts receivable, net 95 142 — 103 Straight-line rent receivables, net 901 1,659 — 4,714 Deferred leasing costs and intangible assets, net 751 450 2,742 1,999 Prepaid expenses and other assets, net — — — 187 ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 42,085 $ 92,124 $ 17,955 $ 98,356 LIABILITIES Accounts payable, accrued liabilities and other $ 184 $ 273 $ 12 $ 1,372 Intangible liabilities, net — — — 96 Security deposits and prepaid rent 395 1,205 — 361 LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ 579 $ 1,478 $ 12 $ 1,829 |
Non-Real Estate Property, Pla_2
Non-Real Estate Property, Plant and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Net | The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated Useful Life (Years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant and leasehold improvements Shorter of the estimated useful life or the lease term The following table summarizes the Company’s non-real estate property, plant and equipment, net as of: December 31, 2022 December 31, 2021 Trailers $ 68,973 $ 35,181 Production equipment 36,019 — Trucks and other vehicles 20,306 12,204 Leasehold improvements 16,993 15,267 Furniture, fixtures and equipment 5,849 4,592 Other equipment 5,693 4,605 Non-real estate property, plant and equipment, at cost 153,833 71,849 Accumulated depreciation (23,544) (13,380) NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET $ 130,289 $ 58,469 |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2022, the operating partnership has determined that 13 of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % Sunset Bronson Entertainment Properties, LLC Sunset Bronson Studios, ICON, CUE 51.0 % Sunset Gower Entertainment Properties, LLC Sunset Gower Studios 51.0 % Sunset 1440 North Gower Street, LLC Sunset Gower Studios 51.0 % Sunset Las Palmas Entertainment Properties, LLC Sunset Las Palmas Studios, Harlow 51.0 % Sunset Services Holdings, LLC None (1) 51.0 % Sunset Studios Holdings, LLC EPIC 51.0 % Hudson Media and Entertainment Management, LLC None (2) 51.0 % Hudson 6040 Sunset, LLC 6040 Sunset 51.0 % Hudson 1918 Eighth, L.P. 1918 Eighth 55.0 % __________________ 1. Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively. 2. Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). The following table summarizes the Company’s investments in unconsolidated joint ventures: Property Property Type Submarket Ownership Interest Functional Currency Sunset Waltham Cross Studios Development Broxbourne, United Kingdom 35% Pound sterling (1) Sunset Glenoaks Studios Development Los Angeles 50% U.S. dollar (2)(3) Bentall Centre Operating Property Downtown Vancouver 20% Canadian dollar (2)(4) __________________ 1. On July 29, 2021, the Company purchased 35% of the ownership interests in the joint venture that owns the Sunset Waltham Cross Studios development. The Company also owns 35% of the ownership interests in the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity. 2. The Company serves as the operating member of this joint venture. 3. The Company has provided various guarantees for the joint venture’s construction loan, including a completion guarantee, equity guarantee and recourse carve-out guarantee. 4. The Company has guaranteed the joint venture’s outstanding indebtedness in the amount of $98.1 million. |
Summarized Financial Information of Unconsolidated Real Estate Entity | The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures: December 31, 2022 December 31, 2021 ASSETS Investment in real estate, net $ 1,093,448 $ 1,048,593 Other assets 62,870 57,232 TOTAL ASSETS 1,156,318 1,105,825 LIABILITIES Secured debt, net 527,985 516,153 Other liabilities 49,027 40,307 TOTAL LIABILITIES 577,012 556,460 Company’s capital (1) 170,656 148,914 Partner's capital 408,650 400,451 TOTAL CAPITAL 579,306 549,365 TOTAL LIABILITIES AND CAPITAL $ 1,156,318 $ 1,105,825 _____________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in the income from unconsolidated real estate entities line item on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures: Year Ended December 31, 2022 2021 2020 TOTAL REVENUES $ 83,441 $ 80,901 $ 69,592 TOTAL EXPENSES (78,083) (70,934) (65,983) NET INCOME $ 5,358 $ 9,967 $ 3,609 |
Deferred Leasing Costs and In_2
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following summarizes the Company’s deferred leasing costs and intangibles as of: December 31, 2022 December 31, 2021 Deferred leasing costs and in-place lease intangibles $ 328,617 $ 331,149 Accumulated amortization (141,353) (126,423) Deferred leasing costs and in-place lease intangibles, net 187,264 204,726 Below-market ground leases 79,562 79,562 Accumulated amortization (17,979) (15,233) Below-market ground leases, net 61,583 64,329 Above-market leases 724 1,334 Accumulated amortization (324) (782) Above-market leases, net 400 552 Customer relationships 97,900 52,500 Accumulated amortization (12,346) (2,684) Customer relationships, net 85,554 49,816 Non-competition agreements 8,200 5,300 Accumulated amortization (1,632) (379) Non-competition agreements, net 6,568 4,921 Trade name 37,200 17,100 Parking easement 15,273 — DEFERRED LEASING COSTS AND INTANGIBLE ASSETS, NET $ 393,842 $ 341,444 Below-market leases $ 59,540 $ 75,827 Accumulated amortization (26,195) (34,326) Below-market leases, net 33,345 41,501 Above-market ground leases 1,095 1,095 Accumulated amortization (349) (306) Above-market ground leases, net 746 789 INTANGIBLE LIABILITIES, NET $ 34,091 $ 42,290 |
Schedule of Amortization During Period | The Company recognized the following amortization related to deferred leasing costs and intangibles: For the Year Ended December 31, 2022 2021 2020 Deferred leasing costs and in-place lease intangibles (1) $ (40,171) $ (45,128) $ (41,334) Below-market ground leases (2) $ (2,775) $ (2,410) $ (2,395) Above-market leases (3) $ (124) $ (617) $ (874) Customer relationships (1) $ (9,662) $ (2,684) $ — Non-competition agreements (1) $ (1,253) $ (379) $ — Below-market leases (3) $ 8,156 $ 12,032 $ 10,509 Above-market ground leases (2) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses, except for amortization of lease incentive costs which is recorded in office rental revenues on the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3. Amortization is recorded in office rental revenues on the Consolidated Statements of Operations. |
Schedule of Future Amortization Expense | The following table provides information regarding the Company’s estimated future amortization of deferred leasing costs and intangibles as of December 31, 2022: For the Year Ended December 31, Deferred Leasing Costs and In-place Lease Intangibles Below-market Ground Leases Above-market Leases Customer relationships Non-competition agreements Below-market Leases Above-market Ground Leases 2023 $ (34,732) $ (2,752) $ (62) $ (13,986) $ (1,640) $ 6,277 $ 43 2024 (27,792) (2,752) (57) (13,986) (1,640) 5,098 43 2025 (21,581) (2,752) (48) (13,986) (1,640) 4,137 43 2026 (18,339) (2,752) (43) (13,986) (1,237) 3,961 43 2027 (15,562) (2,752) (43) (13,986) (411) 3,893 43 Thereafter (69,258) (47,823) (147) (15,624) — 9,979 531 TOTAL $ (187,264) $ (61,583) $ (400) $ (85,554) $ (6,568) $ 33,345 $ 746 |
Schedule of Estimated Amortization Income | The following table provides information regarding the Company’s estimated future amortization of deferred leasing costs and intangibles as of December 31, 2022: For the Year Ended December 31, Deferred Leasing Costs and In-place Lease Intangibles Below-market Ground Leases Above-market Leases Customer relationships Non-competition agreements Below-market Leases Above-market Ground Leases 2023 $ (34,732) $ (2,752) $ (62) $ (13,986) $ (1,640) $ 6,277 $ 43 2024 (27,792) (2,752) (57) (13,986) (1,640) 5,098 43 2025 (21,581) (2,752) (48) (13,986) (1,640) 4,137 43 2026 (18,339) (2,752) (43) (13,986) (1,237) 3,961 43 2027 (15,562) (2,752) (43) (13,986) (411) 3,893 43 Thereafter (69,258) (47,823) (147) (15,624) — 9,979 531 TOTAL $ (187,264) $ (61,583) $ (400) $ (85,554) $ (6,568) $ 33,345 $ 746 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to our outstanding indebtedness: December 31, 2022 December 31, 2021 Interest Rate (1) Contractual Maturity Date (2) UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (3)(4)(5) $ 385,000 $ 125,000 SOFR + 1.15% to 1.60% 12/21/2026 (6) Series A notes (7) 110,000 110,000 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 (8) 350,000 — 5.95% 2/15/2028 Total unsecured debt 2,660,000 2,050,000 Secured debt Hollywood Media Portfolio 1,100,000 1,100,000 LIBOR + 0.99% 8/9/2026 (9) Acquired Hollywood Media Portfolio debt (209,814) (209,814) LIBOR + 1.55% 8/9/2026 (9) Hollywood Media Portfolio, net (10)(11) 890,186 890,186 One Westside and 10850 Pico (12) 316,602 241,388 SOFR + 1.60% 12/18/2024 (13) Element LA 168,000 168,000 4.59% 11/6/2025 1918 Eighth (14) 314,300 314,300 SOFR + 1.40% 12/18/2025 Hill7 (15) 101,000 101,000 3.38% 11/6/2028 Quixote 160,000 — 5.00% 12/31/2023 Total secured debt 1,950,088 1,714,874 Total unsecured and secured debt 4,610,088 3,764,874 Unamortized deferred financing costs/loan discounts (16) (24,226) (30,971) TOTAL UNSECURED AND SECURED DEBT, NET $ 4,585,862 $ 3,733,903 IN-SUBSTANCE DEFEASED DEBT $ — $ 128,212 4.47% 10/1/2022 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 December 31, 2022, which may be different than the interest rates as of December 31, 2021 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, 2022, 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. On February 6, 2023, the Company made a $102.0 million repayment on this facility. 6. Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each. 7. On January 3, 2023, the Company repaid the Series A notes in full. 8. An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects. 9. Includes the option to extend the initial maturity date of August 9, 2023 three times for an additional one-year term each. 10. The Company owns 51% of the ownership interests in the consolidated joint venture that owns the Hollywood Media Portfolio. The joint venture holds a $1.1 billion mortgage loan secured by the Hollywood Media Portfolio. The Company purchased bonds comprising the loan in the amount of $209.8 million. 11. The interest on the full principal amount has been effectively capped at 4.49% (3.50% strike rate + 0.99% spread) per annum through the use of an interest rate cap. 12. The Company owns 75% of the ownership interests in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 13. Includes the option to extend the initial maturity date of December 18, 2023 twice for an additional six-month term each. 14. The Company owns 55% of the ownership interests in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan is interest-only through its term. 15. The Company owns 55% of the ownership interests in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. 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. 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 2 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. |
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 December 31, 2022: For the Year Ended December 31, Unsecured and Secured Debt Joint Venture Partner Debt 2023 $ 320,000 $ — 2024 316,602 — 2025 741,300 — 2026 1,425,186 — 2027 456,000 — Thereafter 1,351,000 66,136 TOTAL $ 4,610,088 $ 66,136 |
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels as of December 31, 2022 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% 44.2% Unsecured indebtedness to unencumbered asset value ≤ 60% 46.3% Adjusted EBITDA to fixed charges ≥ 1.5x 3.0x Secured indebtedness to total asset value ≤ 45% 19.7% Unencumbered NOI to unsecured interest expense ≥ 2.0x 2.6x The following table summarizes existing covenants and their covenant levels related to our registered senior notes as of December 31, 2022: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 47.6% Total unencumbered assets to unsecured debt ≥ 150% 220.2% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.0x Secured debt to total assets ≤ 45% 20.7% _________________ 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 interest expense on the Consolidated Statements of Operations: Year Ended December 31, 2022 2021 2020 Gross interest expense (1) $ 154,038 $ 133,165 $ 126,447 Capitalized interest (18,031) (21,689) (19,509) Amortization of deferred financing costs and loan discount, net 13,894 10,463 6,885 INTEREST EXPENSE $ 149,901 $ 121,939 $ 113,823 _________________ 1. Includes interest on the Company’s debt and hedging activities. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2022 and December 31, 2021: Underlying Debt Instrument Number of Derivatives Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value Low High 2022 2021 Interest rate swaps Hollywood Media Portfolio (2)(3) 2 $ 350,000 April 2015 April 2022 2.96 % 3.46 % $ — $ (1,413) Hollywood Media Portfolio (2)(3) 1 125,000 June 2016 November 2022 2.63 % 3.13 % — (1,122) Interest rate cap Strike Rate Hollywood Media Portfolio (4) 1 1,100,000 August 2021 August 2023 3.50% 9,292 368 TOTAL $ 9,292 $ (2,167) _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio. 2. The swaps were designated under the first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. 3. These derivatives were designated as effective cash flow hedges for accounting purposes. 4. The interest rate cap was designated as an effective cash flow hedge for accounting purposes beginning in December 2022. |
Future Minimum Rents and Leas_2
Future Minimum Rents and Lease Payments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Future Minimum Base Rents Receivable | 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, 2022: For the Year Ended December 31, Non-cancellable Subject to Early Termination Options Total (1) 2023 $ 637,662 $ 1,019 $ 638,681 2024 592,404 3,737 596,141 2025 453,932 38,572 492,504 2026 391,510 47,659 439,169 2027 325,477 54,287 379,764 Thereafter 1,170,616 121,205 1,291,821 TOTAL $ 3,571,601 $ 266,479 $ 3,838,080 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. |
Future Minimum Lease Payments Due | 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, 2022: For the Year Ended December 31, Lease Payments (1) 2023 $ 39,054 2024 39,261 2025 39,485 2026 37,879 2027 35,184 Thereafter 554,525 Total operating lease payments 745,388 Less: interest portion (345,587) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 399,801 _____________ 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. |
Rental Expense | For the Year Ended December 31, 2022 2021 2020 Variable rental expense $ 9,854 $ 10,405 $ 8,944 Minimum rental expense $ 31,003 $ 21,482 $ 19,964 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities, Recurring | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivative assets (1) $ — $ 9,292 $ — $ 9,292 $ — $ 368 $ — $ 368 Interest rate derivative liabilities (2) $ — $ — $ — $ — $ — $ (2,535) $ — $ (2,535) Non-real estate investments measured at fair value (1) $ 544 $ — $ — $ 544 $ 1,915 $ 1,568 $ — $ 3,483 Stock purchase warrant (1) $ — $ 95 $ — $ 95 $ — $ 1,664 $ — $ 1,664 Earnout liability (2)(3) $ — $ — $ (9,300) $ (9,300) $ — $ — $ (11,383) $ (11,383) Non-real estate investments measured at NAV (1)(4) $ — $ — $ — $ 46,785 $ — $ — $ — $ 27,964 _____________ 1. Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2. Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3. Related to the acquisition of Zio. Refer to Note 3 for additional details. 4. According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Fair Value, Liabilities Measured on Recurring Basis | The following table summarizes changes in the carrying amount of the earnout liability during the year ended December 31, 2022: Balance, December 31, 2021 $ (11,383) Partial settlement 3,840 Remeasurement to fair value (1,757) Balance, December 31, 2022 $ (9,300) |
Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: December 31, 2022 December 31, 2021 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ — $ — $ 129,321 $ 130,910 Liabilities Unsecured debt (1) $ 2,660,000 $ 2,364,871 $ 2,050,000 $ 2,154,908 Secured debt (1) $ 1,950,088 $ 1,927,297 $ 1,714,874 $ 1,713,726 In-substance defeased debt $ — $ — $ 128,212 $ 128,361 Joint venture partner debt $ 66,136 $ 60,327 $ 66,136 $ 69,116 _____________ 1. Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Key Components of OPP Plan | The following table outlines key components of the 2022 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $15.0 $15.0 Performance period 1/1/2022 to 12/31/2022 1/1/2022 to 12/31/2024 The following table outlines key components of the 2021 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $16.7 $16.7 Performance period 1/1/2021 to 12/31/2021 1/1/2021 to 12/31/2023 The following table outlines key components of the 2020 PSU Plan: Operational Performance Unit Relative TSR Performance Unit Maximum bonus pool, in millions $14.9 $14.9 Performance period 1/1/2020 to 12/31/2020 1/1/2020 to 12/31/2022 |
Schedule of Valuation Assumptions | The per unit fair value of the 2022, 2021 and 2020 PSU awards granted was estimated on the date of grant using the following assumptions in the Monte Carlo simulation: 2022 2021 2020 Expected price volatility for the Company 43.00% 41.00% 17.00% Expected price volatility for the particular REIT index 33.00% 31.00% 14.00% Risk-free rate 1.72% 0.17% 1.66% Dividend yield 3.60% 3.50% 2.80% |
Summary of Activity and Status of Unvested Stock Awards | The following table summarizes the activity and status of all unvested stock awards: 2022 2021 2020 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 507,534 $ 25.17 442,645 $ 27.44 459,784 $ 33.67 Granted 50,915 20.15 276,800 23.90 404,779 24.70 Vested (234,741) 26.81 (203,329) 28.33 (420,970) 31.61 Canceled (13,871) 24.42 (8,582) 26.21 (948) 29.91 Unvested at December 31 309,837 $ 23.14 507,534 $ 25.17 442,645 $ 27.44 |
Summary of Activity and Status of Unvested Performance Units | The following table summarizes the activity and status of all unvested time-based restricted operating partnership performance units: 2022 2021 2020 Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Unvested at January 1 681,394 $ 24.91 771,432 $ 27.08 608,679 $ 32.70 Granted 25,206 11.98 355,551 24.68 571,978 23.49 Vested (348,944) 26.42 (349,804) 29.85 (409,225) 30.42 Canceled — — (95,785) 23.49 — — Unvested at December 31 357,656 $ 22.53 681,394 $ 24.91 771,432 $ 27.08 |
Stock-Based Compensation Related to Company's Awards | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2022 2021 2020 Expensed stock compensation (1) $ 24,296 $ 21,163 $ 22,723 Capitalized stock compensation (2) 3,354 3,524 3,306 Total stock compensation (3) $ 27,650 $ 24,687 $ 26,029 _________________ 1. Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2. Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net (loss) income available to common stockholders: For the Year Ended December 31, 2022 2021 2020 Numerator: Basic and diluted net (loss) income available to common stockholders $ (56,499) $ 6,064 $ 383 Denominator: Basic weighted average common shares outstanding 143,732,433 151,618,282 153,126,027 Effect of dilutive instruments (1) — 325,078 42,998 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 143,732,433 151,943,360 153,169,025 Basic earnings per common share $ (0.39) $ 0.04 $ 0.00 Diluted earnings per common share $ (0.39) $ 0.04 $ 0.00 _____________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net (loss) income available to common unitholders: For the Year Ended December 31, 2022 2021 2020 Numerator: Basic and diluted net (loss) income available to common unitholders $ (57,208) $ 6,125 $ 393 Denominator: Basic weighted average common units outstanding 145,580,928 153,007,287 154,040,775 Effect of dilutive instruments (1) — 325,078 42,998 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 145,580,928 153,332,365 154,083,773 Basic earnings per common unit $ (0.39) $ 0.04 $ 0.00 Diluted earnings per common unit $ (0.39) $ 0.04 $ 0.00 _____________ 1. The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2021 $ 9,815 $ 129,449 Contributions — 575 Distributions — (16) Declared dividend (612) — Net income (loss) 612 (4,964) BALANCE AT DECEMBER 31, 2022 $ 9,815 $ 125,044 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive income (loss) (“AOCI”): Derivative Instruments Currency Translation Adjustments Total AOCI Balance at January 1, 2020 $ (2,391) $ 1,830 $ (561) Unrealized (loss) gain recognized in AOCI (14,407) 1,415 (12,992) Reclassification from AOCI into income 5,420 — 5,420 Net change in AOCI (8,987) 1,415 (7,572) Balance at December 31, 2020 (11,378) 3,245 (8,133) Unrealized gain (loss) recognized in AOCI 169 (1,049) (880) Reclassification from AOCI into income 7,252 — 7,252 Net change in AOCI 7,421 (1,049) 6,372 Balance at December 31, 2021 (3,957) 2,196 (1,761) Unrealized gain (loss) recognized in AOCI 612 (12,188) (11,576) Reclassification from AOCI into income 2,065 — 2,065 Net change in AOCI 2,677 (12,188) (9,511) Balance at December 31, 2022 $ (1,280) $ (9,992) $ (11,272) The table below presents the activity related to Hudson Pacific Properties, LP’s AOCI: Derivative Instruments Currency Translation Adjustments Total AOCI Balance at January 1, 2020 $ (2,458) $ 1,845 $ (613) Unrealized (loss) gain recognized in AOCI (14,471) 1,394 (13,077) Reclassification from AOCI into income 5,444 — 5,444 Net change in AOCI (9,027) 1,394 (7,633) Balance at December 31, 2020 (11,485) 3,239 (8,246) Unrealized gain (loss) recognized in AOCI 171 (1,064) (893) Reclassification from AOCI into income 7,360 — 7,360 Net change in AOCI 7,531 (1,064) 6,467 Balance at December 31, 2021 (3,954) 2,175 (1,779) Unrealized gain (loss) recognized in AOCI 597 (12,375) (11,778) Reclassification from AOCI into income 2,097 — 2,097 Net change in AOCI 2,694 (12,375) (9,681) Balance at December 31, 2022 $ (1,260) $ (10,200) $ (11,460) |
Schedule of Other Ownership Interests | The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of: December 31, 2022 December 31, 2021 December 31, 2020 Company-owned common units in the operating partnership 141,054,478 151,124,543 151,401,365 Company’s ownership interest percentage 98.5 % 98.8 % 99.1 % Non-controlling common units in the operating partnership (1) 2,191,842 1,842,898 1,321,083 Non-controlling ownership interest percentage 1.5 % 1.2 % 0.9 % _________________ 1. Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of December 31, 2022, this amount represents both common units and performance units of 550,969 and 1,640,873, respectively. As of December 31, 2021, this amount represents both common units and performance units of 550,969 and 1,291,929, respectively. As of December 31, 2020, this amount represents both common units and performance units of 550,969 and 770,114, respectively. |
Schedule of Dividends | The following table summarizes dividends per share declared and paid for the periods presented: For the Year Ended December 31, 2022 2021 2020 Common stock (1) $ 1.00 $ 1.00 $ 1.00 Common units (1) $ 1.00 $ 1.00 $ 1.00 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 Series C preferred stock (2) $ 1.3359 $ — $ — _________________ 1. The fourth quarter 2022 dividends were paid on December 29, 2022 to shareholders and unitholders of record on December 19, 2022. 2. Dividends paid during the year ended December 31, 2022 include a $0.2968750 per share dividend declared and paid in each of the first, second, third and fourth quarters of 2022 and a $0.1484375 per share dividend declared during the fourth quarter of 2021. |
Schedule of Dividends Taxability | The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distribution Per Share Total Non-Qualified Qualified Capital Gain Distributions Return of Capital 3/21/2022 3/31/2022 $ 0.250000 $ 0.107170 $ 0.107170 $ 0.000000 $ 0.000000 $ 0.142830 6/20/2022 6/30/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 9/19/2022 9/29/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 12/19/2022 12/29/2022 0.250000 0.107170 0.107170 0.000000 0.000000 0.142830 TOTALS $ 1.000000 $ 0.428680 $ 0.428680 $ 0.000000 $ 0.000000 $ 0.571320 100.00 % 42.87 % 0.00 % 57.13 % The Company’s dividends related to its 4.750% series C preferred stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distribution Per Share Total Non-Qualified Qualified Capital Gain Distributions Return of Capital 3/21/2022 3/31/2022 $ 0.445313 $ 0.445313 $ 0.445313 $ 0.000000 $ 0.000000 $ 0.000000 6/20/2022 6/30/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 9/19/2022 9/29/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 12/19/2022 12/29/2022 0.296875 0.296875 0.296875 0.000000 0.000000 0.000000 TOTALS $ 1.335938 $ 1.335938 $ 1.335938 $ 0.000000 $ 0.000000 $ 0.000000 100.00 % 100.00 % 0.00 % 0.00 % |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The table below presents the operating activity of the Company’s reportable segments: Year Ended December 31, 2022 2021 2020 Office segment Office revenues $ 852,700 $ 795,370 $ 735,919 Office expenses (308,668) (280,334) (262,199) Office segment profit 544,032 515,036 473,720 Studio segment Studio revenues 173,524 101,465 69,046 Studio expenses (105,150) (55,513) (37,580) Studio segment profit 68,374 45,952 31,466 TOTAL SEGMENT PROFIT $ 612,406 $ 560,988 $ 505,186 Segment revenues $ 1,026,224 $ 896,835 $ 804,965 Segment expenses (413,818) (335,847) (299,779) TOTAL SEGMENT PROFIT $ 612,406 $ 560,988 $ 505,186 The table below is a reconciliation of net (loss) income to total profit from all segments: Year Ended December 31, 2022 2021 2020 NET (LOSS) INCOME $ (16,517) $ 29,012 $ 16,430 General and administrative 79,501 71,346 77,882 Depreciation and amortization 373,219 343,614 299,682 Income from unconsolidated real estate entities (943) (1,822) (736) Fee income (7,972) (3,221) (2,815) Interest expense 149,901 121,939 113,823 Interest income (2,340) (3,794) (4,089) Management services reimbursement income—unconsolidated real estate entities (4,163) (1,132) — Management services expense—unconsolidated real estate entities 4,163 1,132 — Transaction-related expenses 14,356 8,911 440 Unrealized loss (gain) on non-real estate investments 1,440 (16,571) 2,463 Loss on sale of real estate 2,164 — — Impairment loss 28,548 2,762 — Loss on extinguishment of debt — 6,259 2,654 Other (income) expense (8,951) 2,553 (548) TOTAL PROFIT FROM ALL SEGMENTS $ 612,406 $ 560,988 $ 505,186 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental schedule of cash flow information | Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Year Ended December 31, 2022 2021 2020 Cash paid for interest, net of capitalized interest $ 133,869 $ 112,043 $ 103,099 Non-cash investing and financing activities Note payable issued as consideration in a business combination $ 160,000 $ — $ — Accounts payable and accrued liabilities for real estate investments $ 150,408 $ 193,521 $ 136,959 Lease liabilities recorded in connection with right-of-use assets $ 100,805 $ 26,824 $ — Ground lease remeasurement $ 23,177 $ — $ — Earnout liability recognized as contingent consideration for business combination $ — $ 11,383 $ — Series C preferred stock dividend accrual $ — $ 2,281 $ — Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Year Ended December 31, 2022 2021 2020 Cash paid for interest, net of capitalized interest $ 133,869 $ 112,043 $ 103,099 Non-cash investing and financing activities Note payable issued as consideration in a business combination $ 160,000 $ — $ — Accounts payable and accrued liabilities for real estate investments $ 150,408 $ 193,521 $ 136,959 Lease liabilities recorded in connection with right-of-use assets $ 100,805 $ 26,824 $ — Ground lease remeasurement $ 23,177 $ — $ — Earnout liability recognized as contingent consideration for business combination $ — $ 11,383 $ — Series C preferred unit dividend accrual $ — $ 2,281 $ — |
Organization (Details)
Organization (Details) | 12 Months Ended | |
Dec. 31, 2022 ft² property | Jul. 29, 2021 | |
Real Estate Properties | ||
Number of properties | property | 64 | |
Square Feet | ft² | 20,966,082 | |
Rentable Square Feet | Customer Concentration Risk | 15 largest tenants | ||
Real Estate Properties | ||
Contribution risk, percentage | 36.90% | |
Rentable Square Feet | Customer Concentration Risk | Technology Sector | ||
Real Estate Properties | ||
Contribution risk, percentage | 27% | |
Rentable Square Feet | Customer Concentration Risk | Media And Entertainment Sector | ||
Real Estate Properties | ||
Contribution risk, percentage | 17.50% | |
California | Property | Geographic Concentration Risk | ||
Real Estate Properties | ||
Contribution risk, percentage | 70.70% | |
Office | Revenue Benchmark | Customer Concentration Risk | Google Inc. | ||
Real Estate Properties | ||
Contribution risk, percentage | 12.60% | |
Studio | Revenue Benchmark | Customer Concentration Risk | Netflix, Inc. | ||
Real Estate Properties | ||
Contribution risk, percentage | 14.80% | |
Consolidated portfolio | ||
Real Estate Properties | ||
Number of properties | property | 60 | |
Square Feet | ft² | 17,596,012 | |
Consolidated portfolio | Office | ||
Real Estate Properties | ||
Number of properties | property | 51 | |
Square Feet | ft² | 14,338,510 | |
Consolidated portfolio | Studio | ||
Real Estate Properties | ||
Number of properties | property | 4 | |
Square Feet | ft² | 1,291,260 | |
Consolidated portfolio | Land | ||
Real Estate Properties | ||
Number of properties | property | 5 | |
Square Feet | ft² | 1,966,242 | |
Unconsolidated portfolio | ||
Real Estate Properties | ||
Number of properties | property | 4 | |
Square Feet | ft² | 3,370,070 | |
Unconsolidated portfolio | Joint Venture Bentall Centre Properties | ||
Real Estate Properties | ||
Joint venture, ownership percentage | 20% | |
Unconsolidated portfolio | Joint Venture Sunset Glenoaks Studios Property | ||
Real Estate Properties | ||
Joint venture, ownership percentage | 50% | |
Unconsolidated portfolio | Joint Venture Waltham Cross Studios | ||
Real Estate Properties | ||
Joint venture, ownership percentage | 35% | 35% |
Unconsolidated portfolio | Office | ||
Real Estate Properties | ||
Number of properties | property | 1 | |
Square Feet | ft² | 1,511,723 | |
Unconsolidated portfolio | Studio | ||
Real Estate Properties | ||
Number of properties | property | 1 | |
Square Feet | ft² | 241,000 | |
Unconsolidated portfolio | Land | ||
Real Estate Properties | ||
Number of properties | property | 2 | |
Square Feet | ft² | 1,617,347 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2022 USD ($) jointVenture segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Aug. 31, 2022 USD ($) | |
Accounting Policies | ||||
Construction costs capitalization period after substantially complete | 1 year | |||
Number of operating segments | segment | 3 | |||
Goodwill | $ 263,549,000 | $ 109,439,000 | $ 8,800,000 | |
Impairment of goodwill | 0 | 0 | 0 | |
Accounts receivable | 16,900,000 | 25,500,000 | ||
Accounts receivable, allowance for doubtful accounts | (100,000) | (200,000) | ||
Straight-line rent receivables | 279,900,000 | 240,300,000 | ||
Straight-line rent receivables, allowance for doubtful accounts | 0 | 0 | ||
U.S. Government securities | 0 | 129,321,000 | ||
Unrealized loss (gain) on non-real estate investments | (1,440,000) | 16,571,000 | (2,463,000) | |
Gain (loss) recognized on stock purchase warrant | $ (1,600,000) | 1,700,000 | 0 | |
Weighted average incremental borrowing rate | 5.60% | |||
Weighted average remaining lease term | 23 years | |||
Income tax expense (benefit) | $ (7,500,000) | 1,900,000 | (1,000,000) | |
Deferred tax assets, net | 5,300,000 | |||
Deferred tax assets, gross | 16,900,000 | 6,100,000 | ||
Deferred tax liabilities, gross | 11,600,000 | 6,800,000 | ||
Deferred tax liabilities, net | 700,000 | |||
Deferred tax assets, valuation allowance | 1,200,000 | |||
Domestic Tax Authority | ||||
Accounting Policies | ||||
Income tax expense (benefit) | 0 | |||
Real Estate Technology Venture Capital Fund | ||||
Accounting Policies | ||||
Unrealized loss (gain) on non-real estate investments | (200,000) | 14,900,000 | $ (900,000) | |
Cumulative unrealized gain (loss), entities that report NAV | $ 13,800,000 | |||
Minimum | ||||
Accounting Policies | ||||
Finite-lived intangible assets useful life (years) | 5 years | |||
Maximum | ||||
Accounting Policies | ||||
Finite-lived intangible assets useful life (years) | 7 years | |||
Quixote | ||||
Accounting Policies | ||||
Goodwill | $ 153,409,000 | |||
Goodwill, acquisition | $ 154,100,000 | |||
Zio and Star Waggons | ||||
Accounting Policies | ||||
Goodwill, acquisition | $ 100,600,000 | |||
Consolidated Entities | ||||
Accounting Policies | ||||
Number of joint ventures meeting the VIE definition | jointVenture | 19 | |||
Number of joint ventures consolidated | jointVenture | 13 | |||
VIE, not primary beneficiary | ||||
Accounting Policies | ||||
Number of joint ventures not consolidated | jointVenture | 6 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Variable Interest Entities (Details) - Consolidated Entities | 12 Months Ended |
Dec. 31, 2022 jointVenture | |
Accounting Policies | |
Number of joint ventures consolidated | 13 |
Hudson 1455 Market, L.P. | |
Accounting Policies | |
VIE, ownership percentage | 55% |
Hill7 | |
Accounting Policies | |
VIE, ownership percentage | 55% |
One Westside and 10850 Pico | |
Accounting Policies | |
VIE, ownership percentage | 75% |
Ferry Building Property | |
Accounting Policies | |
VIE, ownership percentage | 55% |
Sunset Bronson Entertainment Properties, LLC | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Sunset Gower Entertainment Properties, LLC | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Sunset 1440 North Gower Street, LLC | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Sunset Las Palmas Studios, Harlow | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Sunset Services Holdings | |
Accounting Policies | |
VIE, ownership percentage | 51% |
EPIC | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Hudson Media And Entertainment Management | |
Accounting Policies | |
VIE, ownership percentage | 51% |
Sunset 6040 | |
Accounting Policies | |
VIE, ownership percentage | 51% |
1918 Eighth | |
Accounting Policies | |
VIE, ownership percentage | 55% |
Sunset Bronson Services LLC, Sunset Gower Services LLC And Sunset Las Palmas Services LLC | Sunset Services Holdings | |
Accounting Policies | |
VIE, ownership percentage | 100% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Costs Capitalized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Capitalized personnel costs | $ 18,098 | $ 16,728 | $ 15,843 |
Capitalized interest | $ 18,031 | $ 21,689 | $ 19,509 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant and Equipment Net (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Building and improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Land improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 255,761 | $ 96,555 | $ 113,686 | $ 46,224 |
Restricted cash | 29,970 | 100,321 | 35,854 | 12,034 |
Total cash and cash equivalents and restricted cash | $ 285,731 | $ 196,876 | $ 149,540 | $ 58,258 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Prepaid Expenses and Other Assets, net | ||
Non-real estate investments | $ 47,329 | $ 31,447 |
Interest rate derivative assets | 9,292 | 368 |
Prepaid insurance | 6,530 | 5,442 |
Deferred financing costs, net | 5,824 | 7,750 |
Inventory | 4,914 | 1,578 |
Prepaid property tax | 2,041 | 2,192 |
Stock purchase warrant | 95 | 1,664 |
Deposits and pre-development costs for future acquisitions | 0 | 47,605 |
Other | 22,812 | 20,954 |
PREPAID EXPENSES AND OTHER ASSETS, NET | $ 98,837 | $ 119,000 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Revenue Streams (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue | |||
Management fee income | $ 7,972 | $ 3,221 | $ 2,815 |
Management services reimbursement income—unconsolidated real estate entities | 4,163 | 1,132 | 0 |
Ancillary revenues | |||
Disaggregation of Revenue | |||
Service and other revenues | 107,075 | 46,984 | 16,781 |
Receivables | 15,503 | 7,381 | |
Other revenues | |||
Disaggregation of Revenue | |||
Service and other revenues | 23,118 | 15,168 | 16,582 |
Receivables | 1,193 | 1,078 | |
Studio-related tenant recoveries | |||
Disaggregation of Revenue | |||
Service and other revenues | $ 1,951 | $ 1,962 | $ 1,560 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination, Separately Recognized Transactions | ||||||
Goodwill | $ 263,549,000 | $ 109,439,000 | $ 8,800,000 | |||
Transaction-related expenses | 14,356,000 | 8,911,000 | $ 440,000 | |||
Earnout liability | (9,300,000) | (11,383,000) | ||||
Quixote | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Business acquisition, equity and voting interests acquired | 100% | |||||
Intangible assets | $ 76,900,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Goodwill | $ 153,409,000 | |||||
Transaction-related expenses | 8,700,000 | |||||
Business combination consideration paid | 359,098,000 | |||||
Quixote | Customer Relationships And Non-Compete Agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | 48,300,000 | |||||
Quixote | Customer relationships | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 45,400,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Quixote | Non-competition agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 2,900,000 | |||||
Weighted-average amortization period (in years) | 5 years | |||||
Quixote | Trade name | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 28,600,000 | |||||
Zio | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Business acquisition, equity and voting interests acquired | 100% | |||||
Intangible assets | $ 41,670,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Goodwill | $ 70,576,000 | |||||
Transaction-related expenses | 3,400,000 | |||||
Contingent consideration | 22,543,000 | |||||
Business combination consideration paid | 139,741,000 | 15,000,000 | ||||
Zio | Trademarks | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | 8,500,000 | |||||
Zio | Customer Relationships And Non-Compete Agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | 33,200,000 | |||||
Zio | Customer relationships | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 30,000,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Zio | Non-competition agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 3,000,000 | |||||
Weighted-average amortization period (in years) | 5 years | |||||
Zio | Maximum | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Contingent consideration | $ 35,000,000 | |||||
Star Waggons | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Business acquisition, equity and voting interests acquired | 100% | |||||
Intangible assets | $ 33,480,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Goodwill | $ 30,109,000 | |||||
Transaction-related expenses | $ 2,400,000 | |||||
Contingent consideration | 0 | |||||
Business combination consideration paid | 92,656,000 | |||||
Star Waggons | Studio | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Change in goodwill | $ 0 | |||||
Star Waggons | Trademarks | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | 8,600,000 | |||||
Star Waggons | Customer Relationships And Non-Compete Agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | 24,900,000 | |||||
Star Waggons | Customer relationships | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 22,500,000 | |||||
Weighted-average amortization period (in years) | 7 years | |||||
Star Waggons | Non-competition agreements | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Intangible assets | $ 2,300,000 | |||||
Weighted-average amortization period (in years) | 5 years |
Business Combinations - Conside
Business Combinations - Consideration Transferred (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Aug. 31, 2022 | Aug. 31, 2021 | Aug. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination, Separately Recognized Transactions | ||||||
Cash | $ 199,098 | $ 209,854 | $ 0 | |||
Seller note | 160,000 | $ 0 | $ 0 | |||
Quixote | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash | $ 199,098 | |||||
Seller note | 160,000 | |||||
Total consideration | $ 359,098 | |||||
Zio | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash | $ 117,198 | |||||
Contingent consideration | 22,543 | |||||
Total consideration | $ 139,741 | $ 15,000 | ||||
Star Waggons | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash | $ 92,656 | |||||
Contingent consideration | 0 | |||||
Total consideration | $ 92,656 |
Business Combinations - Fair Va
Business Combinations - Fair Value Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2021 | Aug. 16, 2021 | Dec. 31, 2020 |
Business Combination, Separately Recognized Transactions | ||||||
Goodwill | $ 263,549 | $ 109,439 | $ 8,800 | |||
Quixote | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash and cash equivalents | $ 5,780 | |||||
Accounts receivable | 7,238 | |||||
Prepaid expenses and other assets | 3,788 | |||||
Investment in real estate | 47,741 | |||||
Non-real estate property, plant and equipment | 65,939 | |||||
Intangible assets | 76,900 | |||||
Operating lease right-of-use assets | 106,115 | |||||
Total assets acquired | 313,501 | |||||
Accounts payable, accrued liabilities and other | 12,700 | |||||
Operating lease liabilities | 95,112 | |||||
Total liabilities assumed | 107,812 | |||||
Net identifiable assets acquired | 205,689 | |||||
Goodwill | 153,409 | |||||
NET ASSETS ACQUIRED | $ 359,098 | |||||
Zio | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash and cash equivalents | $ 1,084 | |||||
Accounts receivable | 3,001 | |||||
Prepaid expenses and other assets | 1,509 | |||||
Non-real estate property, plant and equipment | 23,399 | |||||
Intangible assets | 41,670 | |||||
Total assets acquired | 70,663 | |||||
Accounts payable, accrued liabilities and other | 1,498 | |||||
Intangible liabilities | 0 | |||||
Total liabilities assumed | 1,498 | |||||
Net identifiable assets acquired | 69,165 | |||||
Goodwill | 70,576 | |||||
NET ASSETS ACQUIRED | $ 139,741 | |||||
Star Waggons | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Cash and cash equivalents | $ 300 | |||||
Accounts receivable | 4,185 | |||||
Prepaid expenses and other assets | 1,605 | |||||
Non-real estate property, plant and equipment | 25,000 | |||||
Intangible assets | 33,480 | |||||
Total assets acquired | 64,570 | |||||
Accounts payable, accrued liabilities and other | 1,913 | |||||
Intangible liabilities | 110 | |||||
Total liabilities assumed | 2,023 | |||||
Net identifiable assets acquired | 62,547 | |||||
Goodwill | 30,109 | |||||
NET ASSETS ACQUIRED | $ 92,656 |
Business Combinations - Pro For
Business Combinations - Pro Forma (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quixote | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Revenue | $ 33,200 | $ 1,090,857 | $ 982,985 | |||
Net (loss) income | $ (5,290) | $ (17,715) | 38,508 | |||
Zio | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Revenue | $ 11,419 | 933,229 | $ 830,463 | |||
Net (loss) income | $ 2,395 | $ 38,884 | $ 8,159 | |||
Star Waggons | ||||||
Business Combination, Separately Recognized Transactions | ||||||
Revenue | $ 9,651 | |||||
Net (loss) income | $ 2,947 |
Investment in Real Estate - Inv
Investment in Real Estate - Investment in Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 1,397,714 | $ 1,313,385 |
Building and improvements | 6,273,655 | 6,241,254 |
Tenant and leasehold improvements | 868,193 | 786,991 |
Furniture and fixtures | 9,639 | 14,020 |
Property under development | 167,371 | 5,827 |
INVESTMENT IN REAL ESTATE, AT COST | $ 8,716,572 | $ 8,361,477 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Thousands | 12 Months Ended | ||||||
Jul. 15, 2022 USD ($) a | May 19, 2022 USD ($) | Apr. 27, 2022 USD ($) | Dec. 23, 2021 USD ($) ft² | Dec. 31, 2022 USD ($) property | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Impairment loss | $ 28,548 | $ 2,762 | $ 0 | ||||
Proceeds from sales of real estate | 137,709 | 0 | 0 | ||||
Gain (loss) on sale of properties | $ (2,164) | $ 0 | $ 0 | ||||
Number of properties | property | 64 | ||||||
Held-for-sale | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Number of properties | property | 1 | 4 | |||||
Washington 1000, Greater Seattle, WA(3) | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Total purchase price | $ 85,600 | ||||||
Sunset Gower Studios Land | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Total purchase price | $ 22,000 | ||||||
5801 Bobby Foster Road in Albuquerque, New Mexico [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Total purchase price | $ 8,000 | ||||||
Area of land (sqft) | a | 29 | ||||||
5th & Bell Office Property | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Acquisitions, square feet | ft² | 197,136 | ||||||
Acquisitions, purchase price | $ 118,900 | ||||||
Del Amo Office | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Impairment loss | $ 13,000 | $ 2,800 | |||||
Proceeds from sales of real estate | 2,800 | $ 17,400 | |||||
Northview | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Impairment loss | 1,500 | ||||||
Proceeds from sales of real estate | 46,000 | ||||||
6922 Hollywood | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | |||||||
Impairment loss | 3,100 | ||||||
Proceeds from sales of real estate | $ 96,000 |
Investment in Real Estate - Pur
Investment in Real Estate - Purchase Price Of Accounting (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Jul. 15, 2022 | May 19, 2022 | Apr. 27, 2022 |
Washington 1000, Greater Seattle, WA(3) | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 86,313 | |||
Washington 1000, Greater Seattle, WA(3) | Land | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | 59,987 | |||
Washington 1000, Greater Seattle, WA(3) | Building and improvements | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | 11,053 | |||
Washington 1000, Greater Seattle, WA(3) | Parking easement | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 15,273 | |||
Sunset Gower Studios Land | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 22,156 | |||
Sunset Gower Studios Land | Land | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 22,200 | 22,156 | ||
Sunset Gower Studios Land | Building and improvements | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | 0 | |||
Sunset Gower Studios Land | Parking easement | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 0 | |||
5801 Bobby Foster Road in Albuquerque, New Mexico [Member] | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 8,457 | |||
5801 Bobby Foster Road in Albuquerque, New Mexico [Member] | Land | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | 2,189 | |||
5801 Bobby Foster Road in Albuquerque, New Mexico [Member] | Building and improvements | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | 6,268 | |||
5801 Bobby Foster Road in Albuquerque, New Mexico [Member] | Parking easement | ||||
Real Estate Properties | ||||
TOTAL ACQUISITION COST | $ 0 |
Investment in Real Estate - Acq
Investment in Real Estate - Acquisition, Allocation of Consideration (Details) - 5th & Bell Office Property $ in Thousands | Dec. 23, 2021 USD ($) |
Real Estate Properties | |
TOTAL ACQUISITION COST | $ 118,907 |
Relative fair value allocation | |
Investment in real estate | 102,939 |
Below-market leases | (5,319) |
TOTAL | 118,907 |
Below-market Leases | |
Relative fair value allocation | |
Finite-lived intangible assets acquired | $ 10,844 |
Weighted-average amortization period (in years) | 9 years 4 months 24 days |
Deferred Leasing Costs and In-place Lease Intangibles | |
Relative fair value allocation | |
Finite-lived intangible assets acquired | $ 10,443 |
Weighted-average amortization period (in years) | 9 years 4 months 24 days |
Above-market Leases | |
Relative fair value allocation | |
Weighted-average amortization period (in years) | 9 years 4 months 24 days |
Investment in Real Estate - Dis
Investment in Real Estate - Dispositions (Details) - Disposed of by Sale $ in Millions | 12 Months Ended | |||
Oct. 20, 2022 USD ($) ft² | Aug. 30, 2022 USD ($) ft² | Aug. 05, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) ft² | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Area of real estate property (sqft) | ft² | 498,174 | |||
Sales Price | $ | $ 144.8 | |||
Del Amo | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Area of real estate property (sqft) | ft² | 113,000 | 113,000 | ||
Sales Price | $ | $ 2.8 | |||
Northview | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Area of real estate property (sqft) | ft² | 179,985 | 179,985 | ||
Sales Price | $ | $ 46 | |||
6922 Hollywood | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations | ||||
Area of real estate property (sqft) | ft² | 205,189 | 205,189 | ||
Sales Price | $ | $ 96 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Held-for-Sale by Property (Details) $ in Millions | Feb. 06, 2023 USD ($) | Dec. 31, 2022 ft² | Oct. 20, 2022 ft² | Aug. 30, 2022 ft² | Aug. 05, 2022 ft² |
Disposed of by Sale | |||||
Real Estate Properties | |||||
Area of real estate property (sqft) | 498,174 | ||||
Skyway Landing | Held-for-sale | |||||
Real Estate Properties | |||||
Area of real estate property (sqft) | 246,997 | ||||
Skyway Landing | Held-for-sale | Subsequent Event | |||||
Real Estate Properties | |||||
Proceeds from sale of real estate | $ | $ 102 | ||||
Del Amo | Disposed of by Sale | |||||
Real Estate Properties | |||||
Area of real estate property (sqft) | 113,000 | 113,000 | |||
Northview | Disposed of by Sale | |||||
Real Estate Properties | |||||
Area of real estate property (sqft) | 179,985 | 179,985 | |||
6922 Hollywood | Disposed of by Sale | |||||
Real Estate Properties | |||||
Area of real estate property (sqft) | 205,189 | 205,189 |
Investment in Real Estate - R_2
Investment in Real Estate - Real Estate Held-for-sale (Details) - Held-for-sale - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Northview Center | ||
ASSETS | ||
Investment in real estate, net | $ 40,338 | |
Straight-line rent receivables, net | 95 | |
Straight-line rent receivables, net | 901 | |
Deferred leasing costs and intangible assets, net | 751 | |
Prepaid expenses and other assets, net | 0 | |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE | 42,085 | |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 184 | |
Intangible liabilities, net | 0 | |
Security deposits and prepaid rent | 395 | |
Liabilities associated with real estate held for sale | 579 | |
Skyway Landing | ||
ASSETS | ||
Investment in real estate, net | $ 92,148 | 89,873 |
Straight-line rent receivables, net | 112 | 142 |
Straight-line rent receivables, net | 460 | 1,659 |
Deferred leasing costs and intangible assets, net | 501 | 450 |
Prepaid expenses and other assets, net | 17 | 0 |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE | 93,238 | 92,124 |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 400 | 273 |
Intangible liabilities, net | 0 | |
Security deposits and prepaid rent | 265 | 1,205 |
Liabilities associated with real estate held for sale | $ 665 | 1,478 |
Del Amo | ||
ASSETS | ||
Investment in real estate, net | 15,213 | |
Straight-line rent receivables, net | 0 | |
Straight-line rent receivables, net | 0 | |
Deferred leasing costs and intangible assets, net | 2,742 | |
Prepaid expenses and other assets, net | 0 | |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE | 17,955 | |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 12 | |
Intangible liabilities, net | 0 | |
Security deposits and prepaid rent | 0 | |
Liabilities associated with real estate held for sale | 12 | |
6922 Hollywood | ||
ASSETS | ||
Investment in real estate, net | 91,353 | |
Straight-line rent receivables, net | 103 | |
Straight-line rent receivables, net | 4,714 | |
Deferred leasing costs and intangible assets, net | 1,999 | |
Prepaid expenses and other assets, net | 187 | |
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE | 98,356 | |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 1,372 | |
Intangible liabilities, net | 96 | |
Security deposits and prepaid rent | 361 | |
Liabilities associated with real estate held for sale | $ 1,829 |
Non-Real Estate Property, Pla_3
Non-Real Estate Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | $ 153,833 | $ 71,849 |
Accumulated depreciation | (23,544) | (13,380) |
NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET | $ 130,289 | 58,469 |
Minimum | ||
Property, Plant and Equipment, Net, by Type | ||
Estimated useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment, Net, by Type | ||
Estimated useful life | 20 years | |
Trailers | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | $ 68,973 | 35,181 |
Production equipment | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | 36,019 | 0 |
Trucks and other vehicles | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | 20,306 | 12,204 |
Leasehold improvements | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | 16,993 | 15,267 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | $ 5,849 | 4,592 |
Furniture, fixtures and equipment | Minimum | ||
Property, Plant and Equipment, Net, by Type | ||
Estimated useful life | 5 years | |
Furniture, fixtures and equipment | Maximum | ||
Property, Plant and Equipment, Net, by Type | ||
Estimated useful life | 7 years | |
Other equipment | ||
Property, Plant and Equipment, Net, by Type | ||
Non-real estate property, plant and equipment, at cost | $ 5,693 | $ 4,605 |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Entities- Schedule of Variable Interest Entities (Details) - VIE, not primary beneficiary - USD ($) $ in Millions | Dec. 31, 2022 | Jul. 29, 2021 |
Joint Venture Waltham Cross Studios | ||
Schedule of Equity Method Investments | ||
Joint venture, ownership percentage | 35% | 35% |
Joint Venture Sunset Glenoaks Studios Property | ||
Schedule of Equity Method Investments | ||
Joint venture, ownership percentage | 50% | |
Joint Venture Bentall Centre Properties | ||
Schedule of Equity Method Investments | ||
Joint venture, ownership percentage | 20% | |
Joint Venture Bentall Centre Properties | Financial guarantee | ||
Schedule of Equity Method Investments | ||
Maximum exposure for guarantee | $ 98.1 |
Investment in Unconsolidated _4
Investment in Unconsolidated Real Estate Entities - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Equity Method Investments | ||
Investment in unconsolidated real estate entities | $ 180,572 | $ 154,731 |
Unconsolidated joint ventures | ||
Schedule of Equity Method Investments | ||
Investment in unconsolidated real estate entities | $ 100 | $ 100 |
Investment in Unconsolidated _5
Investment in Unconsolidated Real Estate Entities - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Investment in real estate, net | $ 7,175,301 | $ 7,077,703 | ||
TOTAL ASSETS | 9,319,140 | 8,990,189 | ||
Liabilities | ||||
Total liabilities | 5,434,450 | 4,653,933 | ||
Total equity | 3,749,831 | 4,196,992 | $ 3,967,980 | $ 3,709,362 |
Total Liabilities and Equity/Capital | 9,319,140 | 8,990,189 | ||
Equity method investment, nonconsolidated investee or group of investees | ||||
ASSETS | ||||
Investment in real estate, net | 1,093,448 | 1,048,593 | ||
Other assets | 62,870 | 57,232 | ||
TOTAL ASSETS | 1,156,318 | 1,105,825 | ||
Liabilities | ||||
Secured debt, net | 527,985 | 516,153 | ||
Other liabilities | 49,027 | 40,307 | ||
Total liabilities | 577,012 | 556,460 | ||
Company's capital | 170,656 | 148,914 | ||
Partner's capital | 408,650 | 400,451 | ||
Total equity | 579,306 | 549,365 | ||
Total Liabilities and Equity/Capital | $ 1,156,318 | $ 1,105,825 |
Investment in Unconsolidated _6
Investment in Unconsolidated Real Estate Entities - Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Method Investment, Summarized Financial Information, Income Statement | |||
TOTAL REVENUES | $ 1,026,224 | $ 896,835 | $ 804,965 |
Net (loss) income | (16,517) | 29,012 | 16,430 |
Equity method investment, nonconsolidated investee or group of investees | |||
Equity Method Investment, Summarized Financial Information, Income Statement | |||
TOTAL REVENUES | 83,441 | 80,901 | 69,592 |
TOTAL EXPENSES | (78,083) | (70,934) | (65,983) |
Net (loss) income | $ 5,358 | $ 9,967 | $ 3,609 |
Deferred Leasing Costs and In_3
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles, net | $ 393,842 | $ 341,444 |
TOTAL | 34,091 | 42,290 |
Below-market Leases | ||
Finite-Lived Intangible Assets, Net | ||
Below-market leases, net | 59,540 | 75,827 |
Accumulated amortization | (26,195) | (34,326) |
TOTAL | 33,345 | 41,501 |
Above-market Ground Leases | ||
Finite-Lived Intangible Assets, Net | ||
Below-market leases, net | 1,095 | 1,095 |
Accumulated amortization | (349) | (306) |
TOTAL | 746 | 789 |
Deferred Leasing Costs and In-place Lease Intangibles | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles | 328,617 | 331,149 |
Accumulated amortization | (141,353) | (126,423) |
Deferred leasing costs and lease intangibles, net | 187,264 | 204,726 |
Below-market Ground Leases | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles | 79,562 | 79,562 |
Accumulated amortization | (17,979) | (15,233) |
Deferred leasing costs and lease intangibles, net | 61,583 | 64,329 |
Above-market Leases | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles | 724 | 1,334 |
Accumulated amortization | (324) | (782) |
Deferred leasing costs and lease intangibles, net | 400 | 552 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles | 97,900 | 52,500 |
Accumulated amortization | (12,346) | (2,684) |
Deferred leasing costs and lease intangibles, net | 85,554 | 49,816 |
Non-competition agreements | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles | 8,200 | 5,300 |
Accumulated amortization | (1,632) | (379) |
Deferred leasing costs and lease intangibles, net | 6,568 | 4,921 |
Trade name | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles, net | 37,200 | 17,100 |
Parking easement | ||
Finite-Lived Intangible Assets, Net | ||
Deferred leasing costs and lease intangibles, net | $ 15,273 | $ 0 |
Deferred Leasing Costs and In_4
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | $ 8,032 | $ 11,415 | $ 9,635 |
Below-market Leases | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | 8,156 | 12,032 | 10,509 |
Above-market Ground Leases | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | 43 | 43 | 43 |
Customer relationships | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | (9,662) | (2,684) | 0 |
Non-competition agreements | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | (1,253) | (379) | 0 |
Deferred Leasing Costs and In-place Lease Intangibles | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | (40,171) | (45,128) | (41,334) |
Below-market Ground Leases | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | (2,775) | (2,410) | (2,395) |
Above Market Leases | |||
Finite-Lived Intangible Assets | |||
Amortization of above- and below-market leases, net | $ (124) | $ (617) | $ (874) |
Deferred Leasing Costs and In_5
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net - Amortization Expense For Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
TOTAL | $ (393,842) | $ (341,444) |
Finite-Lived Intangible Liabilities | ||
TOTAL | 34,091 | 42,290 |
Below-market Leases | ||
Finite-Lived Intangible Liabilities | ||
2023 | 6,277 | |
2024 | 5,098 | |
2025 | 4,137 | |
2026 | 3,961 | |
2027 | 3,893 | |
Thereafter | 9,979 | |
TOTAL | 33,345 | 41,501 |
Above-market Ground Leases | ||
Finite-Lived Intangible Liabilities | ||
2023 | 43 | |
2024 | 43 | |
2025 | 43 | |
2026 | 43 | |
2027 | 43 | |
Thereafter | 531 | |
TOTAL | 746 | 789 |
Deferred Leasing Costs and In-place Lease Intangibles | ||
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2023 | (34,732) | |
2024 | (27,792) | |
2025 | (21,581) | |
2026 | (18,339) | |
2027 | (15,562) | |
Thereafter | (69,258) | |
TOTAL | (187,264) | (204,726) |
Below-market Ground Leases | ||
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2023 | (2,752) | |
2024 | (2,752) | |
2025 | (2,752) | |
2026 | (2,752) | |
2027 | (2,752) | |
Thereafter | (47,823) | |
TOTAL | (61,583) | (64,329) |
Above-market Leases | ||
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2023 | (62) | |
2024 | (57) | |
2025 | (48) | |
2026 | (43) | |
2027 | (43) | |
Thereafter | (147) | |
TOTAL | (400) | (552) |
Customer relationships | ||
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2023 | (13,986) | |
2024 | (13,986) | |
2025 | (13,986) | |
2026 | (13,986) | |
2027 | (13,986) | |
Thereafter | (15,624) | |
TOTAL | (85,554) | (49,816) |
Non-competition agreements | ||
Finite-Lived Intangible Assets, Net, Amortization Expense | ||
2023 | (1,640) | |
2024 | (1,640) | |
2025 | (1,640) | |
2026 | (1,237) | |
2027 | (411) | |
Thereafter | 0 | |
TOTAL | $ (6,568) | $ (4,921) |
Deferred Leasing Costs and In_6
Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net- Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Trade name | ||
Finite-Lived Intangible Assets | ||
Impairment loss | $ 8.5 | |
Below-market Ground Leases | Del Amo | ||
Finite-Lived Intangible Assets | ||
Impairment loss | $ 2.4 | $ 0.4 |
Debt - Outstanding Indebtedness
Debt - Outstanding Indebtedness (Details) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 06, 2023 USD ($) | Jan. 03, 2023 USD ($) | Aug. 31, 2021 USD ($) | Aug. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) extension | Jan. 12, 2023 | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Debt | ||||||||
Duration used in interest rate calculation | 360 days | |||||||
One Westside and 10850 Pico | Consolidated Entities | ||||||||
Debt | ||||||||
VIE, ownership percentage | 75% | |||||||
Hollywood Media Portfolio Joint Venture | ||||||||
Debt | ||||||||
VIE, ownership percentage | 51% | |||||||
Hill7 | ||||||||
Debt | ||||||||
VIE, ownership percentage | 55% | |||||||
One Westside and 10850 Pico | ||||||||
Debt | ||||||||
VIE, ownership percentage | 75% | |||||||
1918 Eighth | ||||||||
Debt | ||||||||
VIE, ownership percentage | 55% | |||||||
Hollywood Media Portfolio | Minimum | Interest Rate Swaps | Designated as Hedging Instrument | Subsequent Event | ||||||||
Debt | ||||||||
Fixed interest rate | 3.31% | |||||||
Unsecured debt | ||||||||
Debt | ||||||||
TOTAL | $ 2,660,000,000 | $ 2,050,000,000 | ||||||
Unsecured debt | Series A notes | ||||||||
Debt | ||||||||
TOTAL | $ 110,000,000 | 110,000,000 | ||||||
Interest rate | 4.34% | |||||||
Unsecured debt | Series A notes | Subsequent Event | ||||||||
Debt | ||||||||
Repayments of debt | $ 110,000,000 | |||||||
Unsecured debt | Series B notes | ||||||||
Debt | ||||||||
TOTAL | $ 259,000,000 | 259,000,000 | ||||||
Interest rate | 4.69% | |||||||
Unsecured debt | Series C notes | ||||||||
Debt | ||||||||
TOTAL | $ 56,000,000 | 56,000,000 | ||||||
Interest rate | 4.79% | |||||||
Unsecured debt | Series D notes | ||||||||
Debt | ||||||||
TOTAL | $ 150,000,000 | 150,000,000 | ||||||
Interest rate | 3.98% | |||||||
Unsecured debt | Series E notes | ||||||||
Debt | ||||||||
TOTAL | $ 50,000,000 | 50,000,000 | ||||||
Interest rate | 3.66% | |||||||
Unsecured debt | 3.95% Registered senior notes | ||||||||
Debt | ||||||||
TOTAL | $ 400,000,000 | 400,000,000 | ||||||
Interest rate | 3.95% | |||||||
Unsecured debt | 4.65% Registered senior notes | ||||||||
Debt | ||||||||
TOTAL | $ 500,000,000 | 500,000,000 | ||||||
Interest rate | 4.65% | |||||||
Unsecured debt | 3.25% Registered senior notes | ||||||||
Debt | ||||||||
TOTAL | $ 400,000,000 | 400,000,000 | ||||||
Interest rate | 3.25% | |||||||
Unsecured debt | 5.95% Registered senior notes | ||||||||
Debt | ||||||||
TOTAL | $ 350,000,000 | $ 350,000,000 | 0 | |||||
Interest rate | 5.95% | 5.95% | ||||||
Unsecured debt | Revolving Credit Facility | Minimum | ||||||||
Debt | ||||||||
Commitment fee percentage | 0.15% | |||||||
Unsecured debt | Revolving Credit Facility | Maximum | ||||||||
Debt | ||||||||
Commitment fee percentage | 0.30% | |||||||
Unsecured debt | Revolving Credit Facility | ||||||||
Debt | ||||||||
TOTAL | $ 385,000,000 | 125,000,000 | ||||||
Maximum borrowing capacity | $ 1,000,000,000 | |||||||
Extension option term | 6 months | |||||||
Unsecured debt | Revolving Credit Facility | Subsequent Event | ||||||||
Debt | ||||||||
Repayments of debt | $ 102,000,000 | |||||||
Unsecured debt | Revolving Credit Facility | GBP | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Unsecured debt | Revolving Credit Facility | CAD | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 250,000,000 | |||||||
Unsecured debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.30% | |||||||
Unsecured debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.15% | |||||||
Unsecured debt | Revolving Credit Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.60% | |||||||
Unsecured debt | Revolving Credit Facility, If Increased | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||
Secured debt | ||||||||
Debt | ||||||||
TOTAL | $ 1,950,088,000 | 1,714,874,000 | ||||||
Extension option term | 6 months | |||||||
Number of extension options | extension | 2 | |||||||
Secured debt | Hollywood Media Portfolio | ||||||||
Debt | ||||||||
TOTAL | $ 890,186,000 | 890,186,000 | ||||||
Debt instrument, face amount | $ 1,100,000,000 | $ 1,100,000,000 | $ 1,100,000,000 | 1,100,000,000 | ||||
Extension option term | 1 year | |||||||
Number of extension options | extension | 3 | |||||||
Payments to acquire bonds | $ 209,800,000 | $ 209,800,000 | ||||||
Secured debt | Hollywood Media Portfolio | Maximum | ||||||||
Debt | ||||||||
Basis spread on variable rate | 0.99% | |||||||
Interest rate | 4.49% | |||||||
Fixed interest rate | 3.50% | |||||||
Secured debt | Hollywood Media Portfolio | London Interbank Offered Rate (LIBOR) | ||||||||
Debt | ||||||||
Basis spread on variable rate | 0.99% | |||||||
Secured debt | Acquired Hollywood Media Portfolio debt | ||||||||
Debt | ||||||||
Acquired Hollywood Media Portfolio debt | $ (209,814,000) | (209,814,000) | ||||||
Secured debt | Acquired Hollywood Media Portfolio debt | London Interbank Offered Rate (LIBOR) | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.55% | |||||||
Secured debt | One Westside and 10850 Pico | ||||||||
Debt | ||||||||
TOTAL | $ 316,602,000 | 241,388,000 | ||||||
Maximum borrowing capacity | $ 414,600,000 | |||||||
Secured debt | One Westside and 10850 Pico | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.60% | |||||||
Secured debt | Element LA | ||||||||
Debt | ||||||||
TOTAL | $ 168,000,000 | 168,000,000 | ||||||
Interest rate | 4.59% | |||||||
Secured debt | 1918 Eighth | ||||||||
Debt | ||||||||
TOTAL | $ 314,300,000 | 314,300,000 | ||||||
Secured debt | 1918 Eighth | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt | ||||||||
Basis spread on variable rate | 1.40% | |||||||
Secured debt | Hill7 | ||||||||
Debt | ||||||||
TOTAL | $ 101,000,000 | 101,000,000 | ||||||
Interest rate | 3.38% | |||||||
Secured debt | Quixote | ||||||||
Debt | ||||||||
TOTAL | $ 160,000,000 | 0 | ||||||
Interest rate | 5% | |||||||
Unsecured and secured debt, net | ||||||||
Debt | ||||||||
TOTAL | $ 4,610,088,000 | 3,764,874,000 | ||||||
Deferred financing costs and discounts, net | (24,226,000) | (30,971,000) | ||||||
Debt | 4,585,862,000 | 3,733,903,000 | ||||||
Unsecured and secured debt, net | Hudson Pacific Partners, L.P. | ||||||||
Debt | ||||||||
Debt | 4,585,862,000 | 3,733,903,000 | ||||||
In-substance defeased debt | ||||||||
Debt | ||||||||
Debt | $ 0 | 128,212,000 | ||||||
Interest rate | 4.47% | |||||||
In-substance defeased debt | Hudson Pacific Partners, L.P. | ||||||||
Debt | ||||||||
Debt | $ 0 | 128,212,000 | ||||||
Joint venture partner debt | ||||||||
Debt | ||||||||
TOTAL | 66,136,000 | |||||||
Debt | $ 66,136,000 | 66,136,000 | ||||||
Interest rate | 4.50% | |||||||
Extension option term | 2 years | |||||||
Number of extension options | extension | 2 | |||||||
Joint venture partner debt | Hudson Pacific Partners, L.P. | ||||||||
Debt | ||||||||
Debt | $ 66,136,000 | $ 66,136,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Nov. 16, 2015 | Sep. 30, 2022 | Jul. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument | ||||||
Proceeds from unsecured and secured debt | $ 1,197,556 | $ 1,450,500 | $ 1,736,914 | |||
Payments of in-substance defeased debt | 128,212 | 3,494 | 3,323 | |||
Hudson Pacific Partners, L.P. | ||||||
Debt Instrument | ||||||
Proceeds from unsecured and secured debt | 1,197,556 | 1,450,500 | 1,736,914 | |||
Payments of in-substance defeased debt | 128,212 | 3,494 | $ 3,323 | |||
Secured debt | ||||||
Debt Instrument | ||||||
Payments of in-substance defeased debt | $ 126,400 | |||||
Notes payable | 1,950,088 | 1,714,874 | ||||
Secured debt | Quixote | ||||||
Debt Instrument | ||||||
Notes payable | $ 160,000 | 0 | ||||
Interest rate | 5% | |||||
Secured debt | One Westside and 10850 Pico | ||||||
Debt Instrument | ||||||
Notes payable | $ 316,602 | 241,388 | ||||
Unsecured debt | ||||||
Debt Instrument | ||||||
Notes payable | 2,660,000 | 2,050,000 | ||||
Unsecured debt | 5.95% Registered senior notes | ||||||
Debt Instrument | ||||||
Proceeds from unsecured and secured debt | $ 346,500 | |||||
Notes payable | $ 350,000 | $ 350,000 | 0 | |||
Interest rate | 5.95% | 5.95% | ||||
Debt discount rate | 99.614% | |||||
Unsecured debt | Senior notes | Hudson Pacific Partners, L.P. | ||||||
Debt Instrument | ||||||
Prepayment, percent of principal, minimum | 5% | |||||
Prepayment, percent of principal | 100% | |||||
Revolving Credit Facility | ||||||
Debt Instrument | ||||||
Proceeds from unsecured and secured debt | $ 260,000 | |||||
Revolving Credit Facility | Unsecured debt | ||||||
Debt Instrument | ||||||
Notes payable | $ 385,000 | $ 125,000 |
Debt - Minimum Future Payments
Debt - Minimum Future Payments Due on Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Unsecured and secured debt, net | ||
Long-term Debt, Fiscal Year Maturity | ||
2023 | $ 320,000 | |
2024 | 316,602 | |
2025 | 741,300 | |
2026 | 1,425,186 | |
2027 | 456,000 | |
Thereafter | 1,351,000 | |
TOTAL | 4,610,088 | $ 3,764,874 |
Joint venture partner debt | ||
Long-term Debt, Fiscal Year Maturity | ||
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 66,136 | |
TOTAL | $ 66,136 |
Debt - Covenants (Details)
Debt - Covenants (Details) | 12 Months Ended | |
Dec. 31, 2022 Rate | Sep. 30, 2022 | |
Covenant Level | ||
Total liabilities to total asset value | 60% | |
Unsecured indebtedness to unencumbered asset value | 60% | |
Adjusted EBITDA to fixed charges | 150% | |
Secured indebtedness to total asset value | 45% | |
Unencumbered NOI to unsecured interest expense | 200% | |
Debt to total assets | 60% | |
Total unencumbered assets to unsecured debt | 150% | |
Consolidated income available for debt service to annual debt service charge | 150% | |
Secured debt to total assets | 45% | |
Actual Performance | ||
Total liabilities to total asset value | 44.20% | |
Unsecured indebtedness to unencumbered asset value | 46.30% | |
Adjusted EBITDA to fixed charges | 3 | |
Secured indebtedness to total asset value | 19.70% | |
Unencumbered NOI to unsecured interest expense | 2.6 | |
Debt to total assets | 47.60% | |
Total unencumbered assets to unsecured debt | 220.20% | |
Consolidated income available for debt service to annual debt service charge | 3 | |
Secured debt to total assets | 20.70% | |
3.25% Registered senior notes | Unsecured debt | ||
Debt Instrument | ||
Interest rate | 3.25% | |
3.95% Registered senior notes | Unsecured debt | ||
Debt Instrument | ||
Interest rate | 3.95% | |
4.65% Registered senior notes | Unsecured debt | ||
Debt Instrument | ||
Interest rate | 4.65% | |
5.95% Registered senior notes | Unsecured debt | ||
Debt Instrument | ||
Interest rate | 5.95% | 5.95% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |||
Gross interest expense | $ 154,038 | $ 133,165 | $ 126,447 |
Capitalized interest | (18,031) | (21,689) | (19,509) |
Amortization of deferred financing costs and loan discount, net | 13,894 | 10,463 | 6,885 |
Interest expense | $ 149,901 | $ 121,939 | $ 113,823 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Details) - Designated as Hedging Instrument | Dec. 31, 2022 USD ($) instrument | Dec. 31, 2021 USD ($) |
Interest Rate Swaps | ||
Derivative | ||
Fair Value Assets/(Liabilities) | $ 9,292,000 | $ (2,167,000) |
Hollywood Media Portfolio | Interest Rate Swaps | ||
Derivative | ||
Number of Derivatives | instrument | 2 | |
Notional Amount | $ 350,000,000 | |
Fair Value Assets/(Liabilities) | $ 0 | (1,413,000) |
Hollywood Media Portfolio | Interest Rate Swaps | Minimum | ||
Derivative | ||
Interest rate (percent) | 2.96% | |
Hollywood Media Portfolio | Interest Rate Swaps | Maximum | ||
Derivative | ||
Interest rate (percent) | 3.46% | |
Hollywood Media Portfolio | Interest Rate Swap II | ||
Derivative | ||
Number of Derivatives | instrument | 1 | |
Notional Amount | $ 125,000,000 | |
Fair Value Assets/(Liabilities) | $ 0 | (1,122,000) |
Hollywood Media Portfolio | Interest Rate Swap II | Minimum | ||
Derivative | ||
Interest rate (percent) | 2.63% | |
Hollywood Media Portfolio | Interest Rate Swap II | Maximum | ||
Derivative | ||
Interest rate (percent) | 3.13% | |
Hollywood Media Portfolio | Interest Rate Cap II | ||
Derivative | ||
Number of Derivatives | instrument | 1 | |
Notional Amount | $ 1,100,000,000 | |
Strike rate (percent) | 3.50% | |
Fair Value Assets/(Liabilities) | $ 9,292,000 | $ 368,000 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Unrealized loss included in accumulated other comprehensive loss | $ 12,000 |
U.S. Government Securities (Det
U.S. Government Securities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
U.S. Government securities | $ 0 | $ 129,321,000 |
Future Minimum Rents and Leas_3
Future Minimum Rents and Lease Payments - Future Minimum Base Rents Receivable (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
For the Year Ended December 31, | |
2023 | $ 638,681 |
2024 | 596,141 |
2025 | 492,504 |
2026 | 439,169 |
2027 | 379,764 |
Thereafter | 1,291,821 |
TOTAL | 3,838,080 |
Non-cancellable | |
For the Year Ended December 31, | |
2023 | 637,662 |
2024 | 592,404 |
2025 | 453,932 |
2026 | 391,510 |
2027 | 325,477 |
Thereafter | 1,170,616 |
TOTAL | 3,571,601 |
Subject to Early Termination Options | |
For the Year Ended December 31, | |
2023 | 1,019 |
2024 | 3,737 |
2025 | 38,572 |
2026 | 47,659 |
2027 | 54,287 |
Thereafter | 121,205 |
TOTAL | $ 266,479 |
Future Minimum Rents and Leas_4
Future Minimum Rents and Lease Payments - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) property contract | Dec. 31, 2021 USD ($) | |
Operating Leased Assets | ||
Total operating lease payments | $ | $ 745,388 | |
Operating lease liabilities | $ | 399,801 | $ 293,596 |
Operating lease right-of-use assets | $ | $ 401,051 | $ 287,041 |
Ground Lease | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | contract | 12 | |
Sound Stage | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | property | 10 | |
Office | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | property | 6 | |
Facility | ||
Operating Leased Assets | ||
Number of operating lease contracts (contract) | property | 17 |
Future Minimum Rents and Leas_5
Future Minimum Rents and Lease Payments - Future Minimum Payments Due (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
For the Year Ended December 31, | ||
2023 | $ 39,054 | |
2024 | 39,261 | |
2025 | 39,485 | |
2026 | 37,879 | |
2027 | 35,184 | |
Thereafter | 554,525 | |
Total operating lease payments | 745,388 | |
Less: interest portion | (345,587) | |
PRESENT VALUE OF OPERATING LEASE LIABILITIES | $ 399,801 | $ 293,596 |
Future Minimum Rents and Leas_6
Future Minimum Rents and Lease Payments - Rental Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Variable rental expense | $ 9,854 | $ 10,405 | $ 8,944 |
Minimum rental expense | $ 31,003 | $ 21,482 | $ 19,964 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate derivative asset | $ 9,292 | $ 368 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, accrued liabilities and other | |
Interest rate derivative liabilities | $ 0 | (2,535) |
Stock purchase warrant | 95 | 1,664 |
Earnout liability | (9,300) | (11,383) |
Non-Real Estate Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | 544 | 3,483 |
Non-real estate investments measured at NAV | 46,785 | 27,964 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate derivative asset | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Stock purchase warrant | 0 | 0 |
Earnout liability | 0 | 0 |
Level 1 | Non-Real Estate Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | 544 | 1,915 |
Non-real estate investments measured at NAV | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate derivative asset | 9,292 | 368 |
Interest rate derivative liabilities | 0 | (2,535) |
Stock purchase warrant | 95 | 1,664 |
Earnout liability | 0 | 0 |
Level 2 | Non-Real Estate Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | 0 | 1,568 |
Non-real estate investments measured at NAV | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate derivative asset | 0 | 0 |
Interest rate derivative liabilities | 0 | 0 |
Stock purchase warrant | 0 | 0 |
Earnout liability | (9,300) | (11,383) |
Level 3 | Non-Real Estate Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | 0 | 0 |
Non-real estate investments measured at NAV | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments- Contingent liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Contingent Liability | |
Balance at the beginning | $ (11,383) |
Partial settlement | 3,840 |
Remeasurement to fair value | (1,757) |
Balance at the beginning | $ (9,300) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Investment in Securities and Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | $ 0 | $ 129,321 |
Carrying Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,660,000 | 2,050,000 |
Carrying Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,950,088 | 1,714,874 |
Carrying Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 0 | 128,212 |
Carrying Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 66,136 | 66,136 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Investments | 0 | 130,910 |
Fair Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,364,871 | 2,154,908 |
Fair Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,927,297 | 1,713,726 |
Fair Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 0 | 128,361 |
Fair Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | $ 60,327 | $ 69,116 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Stock price assumption for maximum bonus pool eligibility (in dollars per share) | $ / shares | $ 9.73 |
Unrecognized compensation cost related to unvested share-based payments | $ | $ 29.9 |
Unrecognized compensation cost, amortization period (in years) | 2 years |
2010 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Number of shares available for grant | shares | 7.1 |
Existing and Newly Elected Board Member | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
2020 PSU Plan | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Post vesting period (in years) | 2 years |
2020 PSU Plan | Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award performance period | 3 years |
2020 PSU Plan | Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Award performance period | 1 year |
Stock-Based Compensation - Key
Stock-Based Compensation - Key Components of Outperformance Plan (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
2022 PSU Plan | Operational Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 15 | ||
2022 PSU Plan | Relative TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 15 | ||
2021 PSU Plan | Operational Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 16.7 | ||
2021 PSU Plan | Relative TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 16.7 | ||
2020 PSU Plan | Operational Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 14.9 | ||
2020 PSU Plan | Relative TSR Performance Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Maximum bonus pool | $ 14.9 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
2022 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free rate | 1.72% | ||
Dividend yield | 3.60% | ||
2021 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free rate | 0.17% | ||
Dividend yield | 3.50% | ||
2020 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Risk-free rate | 1.66% | ||
Dividend yield | 2.80% | ||
The Company | 2022 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 43% | ||
The Company | 2021 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 41% | ||
The Company | 2020 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 17% | ||
REIT Index | 2022 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 33% | ||
REIT Index | 2021 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 31% | ||
REIT Index | 2020 PSU Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected price volatility | 14% |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity and Status of Unvested Shares and Performance Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Units | |||
Beginning balance (in shares) | 507,534 | 442,645 | 459,784 |
Granted (in shares) | 50,915 | 276,800 | 404,779 |
Vested (in shares) | (234,741) | (203,329) | (420,970) |
Canceled (in shares) | (13,871) | (8,582) | (948) |
Ending balance (in shares) | 309,837 | 507,534 | 442,645 |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 25.17 | $ 27.44 | $ 33.67 |
Granted (in dollars per share) | 20.15 | 23.90 | 24.70 |
Vested (in dollars per share) | 26.81 | 28.33 | 31.61 |
Canceled (in dollars per share) | 24.42 | 26.21 | 29.91 |
Ending balance (in dollars per share) | $ 23.14 | $ 25.17 | $ 27.44 |
Performance units | |||
Units | |||
Beginning balance (in shares) | 681,394 | 771,432 | 608,679 |
Granted (in shares) | 25,206 | 355,551 | 571,978 |
Vested (in shares) | (348,944) | (349,804) | (409,225) |
Canceled (in shares) | 0 | (95,785) | 0 |
Ending balance (in shares) | 357,656 | 681,394 | 771,432 |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 24.91 | $ 27.08 | $ 32.70 |
Granted (in dollars per share) | 11.98 | 24.68 | 23.49 |
Vested (in dollars per share) | 26.42 | 29.85 | 30.42 |
Canceled (in dollars per share) | 0 | 23.49 | 0 |
Ending balance (in dollars per share) | $ 22.53 | $ 24.91 | $ 27.08 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Recorded (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Expensed stock compensation | $ 24,296 | $ 21,163 | $ 22,723 |
Capitalized stock compensation | 3,354 | 3,524 | 3,306 |
Total stock compensation | $ 27,650 | $ 24,687 | $ 26,029 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Basic net (loss) income available to common unitholders | $ (56,499) | $ 6,064 | $ 383 |
Diluted net (loss) income available to common stockholders | $ (56,499) | $ 6,064 | $ 383 |
Denominator: | |||
Basic weighted average common shares outstanding (in shares) | 143,732,433 | 151,618,282 | 153,126,027 |
Effect of dilutive instruments (in shares) | 0 | 325,078 | 42,998 |
Diluted weighted average common shares outstanding (in shares) | 143,732,433 | 151,943,360 | 153,169,025 |
Basic earnings per common share (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Diluted earnings per common share (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Hudson Pacific Partners, L.P. | |||
Numerator: | |||
Basic net (loss) income available to common unitholders | $ (57,208) | $ 6,125 | $ 393 |
Diluted net (loss) income available to common stockholders | $ (57,208) | $ 6,125 | $ 393 |
Denominator: | |||
Basic weighted average common units outstanding (in shares) | 145,580,928 | 153,007,287 | 154,040,775 |
Effect of dilutive instruments (in shares) | 0 | 325,078 | 42,998 |
Diluted weighted average common units outstanding (in shares) | 145,580,928 | 153,332,365 | 154,083,773 |
Basic earnings per common unit (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Diluted earnings per common unit (in dollars per share) | $ (0.39) | $ 0.04 | $ 0 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest - Narrative (Details) - $ / shares | 12 Months Ended | |||
Oct. 09, 2018 | Aug. 31, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest | ||||
Interest rate of preferred stock | 6.25% | |||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | ||
Consolidated Entities | HPP-MAC WSP, LLC | ||||
Redeemable Noncontrolling Interest | ||||
VIE, ownership percentage | 75% | |||
Consolidated Entities | Hudson One Ferry REIT, L.P. | ||||
Redeemable Noncontrolling Interest | ||||
VIE, ownership percentage | 55% | |||
Series A Redeemable Preferred Units | ||||
Redeemable Noncontrolling Interest | ||||
Redeemable non-controlling interest shares (in shares) | 392,598 | 392,598 | ||
Liquidation preference (in dollars per share) | $ 25 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Rollforward (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Consolidated Entities | |
Increase (Decrease) in Temporary Equity | |
Balance at December 31, 2021 | $ 129,449 |
Contributions | 575 |
Distributions | (16) |
Declared dividend | 0 |
Net income (loss) | (4,964) |
BALANCE AT DECEMBER 31, 2022 | 125,044 |
Series A Redeemable Preferred Units | |
Increase (Decrease) in Temporary Equity | |
Balance at December 31, 2021 | 9,815 |
Contributions | 0 |
Distributions | 0 |
Declared dividend | (612) |
Net income (loss) | 612 |
BALANCE AT DECEMBER 31, 2022 | $ 9,815 |
Equity - Comprehensive Income H
Equity - Comprehensive Income Hudson Pacific Properties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | $ 4,196,992 | $ 3,967,980 | $ 3,709,362 |
Unrealized gain (loss) recognized in AOCI | (11,576) | (880) | (12,992) |
Reclassification from AOCI into income | 2,065 | 7,252 | 5,420 |
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Other comprehensive (loss) income | (9,657) | ||
Ending balance | 3,749,831 | 4,196,992 | 3,967,980 |
Total AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (1,761) | (8,133) | (561) |
Total other comprehensive (loss) income | 6,372 | (7,572) | |
Other comprehensive (loss) income | (9,511) | ||
Ending balance | (11,272) | (1,761) | (8,133) |
Derivative Instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (3,957) | (11,378) | (2,391) |
Unrealized gain (loss) recognized in AOCI | 612 | 169 | (14,407) |
Reclassification from AOCI into income | 2,065 | 7,252 | 5,420 |
Total other comprehensive (loss) income | 7,421 | (8,987) | |
Other comprehensive (loss) income | 2,677 | ||
Ending balance | (1,280) | (3,957) | (11,378) |
Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | 2,196 | 3,245 | 1,830 |
Unrealized gain (loss) recognized in AOCI | (12,188) | (1,049) | 1,415 |
Reclassification from AOCI into income | 0 | 0 | 0 |
Total other comprehensive (loss) income | (1,049) | 1,415 | |
Other comprehensive (loss) income | (12,188) | ||
Ending balance | $ (9,992) | $ 2,196 | $ 3,245 |
Equity - Comprehensive Income L
Equity - Comprehensive Income LP (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Unrealized gain (loss) recognized in AOCI | $ (11,576) | $ (880) | $ (12,992) |
Reclassification from AOCI into income | 2,065 | 7,252 | 5,420 |
Other comprehensive (loss) income | (9,657) | ||
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Hudson Pacific Partners, L.P. | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | 4,196,992 | 3,967,980 | 3,709,362 |
Unrealized gain (loss) recognized in AOCI | (11,778) | (893) | (13,077) |
Reclassification from AOCI into income | 2,097 | 7,360 | 5,444 |
Other comprehensive (loss) income | (9,657) | ||
Total other comprehensive (loss) income | (9,657) | 6,467 | (7,633) |
Ending balance | 3,749,831 | 4,196,992 | 3,967,980 |
Total AOCI | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Other comprehensive (loss) income | (9,511) | ||
Total other comprehensive (loss) income | 6,372 | (7,572) | |
Total AOCI | Hudson Pacific Partners, L.P. | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (1,779) | (8,246) | (613) |
Other comprehensive (loss) income | (9,681) | ||
Total other comprehensive (loss) income | 6,467 | (7,633) | |
Ending balance | (11,460) | (1,779) | (8,246) |
Derivative Instruments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Unrealized gain (loss) recognized in AOCI | 612 | 169 | (14,407) |
Reclassification from AOCI into income | 2,065 | 7,252 | 5,420 |
Other comprehensive (loss) income | 2,677 | ||
Total other comprehensive (loss) income | 7,421 | (8,987) | |
Derivative Instruments | Hudson Pacific Partners, L.P. | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | (3,954) | (11,485) | (2,458) |
Unrealized gain (loss) recognized in AOCI | 597 | 171 | (14,471) |
Reclassification from AOCI into income | 2,097 | 7,360 | 5,444 |
Other comprehensive (loss) income | 2,694 | ||
Total other comprehensive (loss) income | 7,531 | (9,027) | |
Ending balance | (1,260) | (3,954) | (11,485) |
Currency Translation Adjustments | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Unrealized gain (loss) recognized in AOCI | (12,188) | (1,049) | 1,415 |
Reclassification from AOCI into income | 0 | 0 | 0 |
Other comprehensive (loss) income | (12,188) | ||
Total other comprehensive (loss) income | (1,049) | 1,415 | |
Currency Translation Adjustments | Hudson Pacific Partners, L.P. | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | |||
Beginning balance | 2,175 | 3,239 | 1,845 |
Unrealized gain (loss) recognized in AOCI | (12,375) | (1,064) | 1,394 |
Reclassification from AOCI into income | 0 | 0 | 0 |
Other comprehensive (loss) income | (12,375) | ||
Total other comprehensive (loss) income | (1,064) | 1,394 | |
Ending balance | $ (10,200) | $ 2,175 | $ 3,239 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) | 12 Months Ended | ||
Dec. 31, 2022 shares | Dec. 31, 2021 shares | Dec. 31, 2020 shares | |
Class of Stock | |||
Company-owned common units in the operating partnership (in shares) | 141,054,478 | 151,124,543 | |
Non-controlling common units in the operating partnership - common units (in shares) | 550,969 | 550,969 | 550,969 |
Non-controlling common units in the operating partnership - preferred units (in shares) | 1,640,873 | 1,291,929 | 770,114 |
Noncontrolling performance units granted and vested (in shares) | 348,944 | 521,815 | 409,225 |
Hudson Pacific Partners, L.P. | |||
Class of Stock | |||
Company’s ownership interest percentage | 98.50% | 98.80% | 99.10% |
Noncontrolling Interest In Operating Partnership | |||
Class of Stock | |||
Non-controlling ownership interest percentage | 1.50% | 1.20% | 0.90% |
Noncontrolling Interest In Operating Partnership | Common Stock | |||
Class of Stock | |||
Non-controlling common units in the operating partnership (in shares) | 2,191,842 | 1,842,898 | 1,321,083 |
Partnership Interest | Hudson Pacific Partners, L.P. | |||
Class of Stock | |||
Company-owned common units in the operating partnership (in shares) | 141,054,478 | 151,124,543 | 151,401,365 |
Performance units | |||
Class of Stock | |||
Common stock, conversion ratio | 1 |
Equity - Common Stock Activity
Equity - Common Stock Activity (Details) | 3 Months Ended | 12 Months Ended | ||||||
Jul. 31, 2022 $ / shares shares | Sep. 30, 2022 $ / shares shares | Jun. 30, 2022 $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Feb. 25, 2022 USD ($) | |
Class of Stock | ||||||||
Proceeds from sale of common stock | $ 0 | $ 44,974,000 | $ 0 | |||||
Stock repurchase program authorized | $ 250,000,000 | |||||||
Shares repurchased during period (in shares) | shares | 2,100,000 | 1,900,000 | 3,500,000 | |||||
Share repurchase program, weighted average price (in dollars per share) | $ / shares | $ 24.60 | $ 17.65 | $ 23.82 | $ 23 | ||||
Repurchase of common stock | $ 37,200,000 | $ 46,100,000 | $ 80,100,000 | |||||
Repurchase of common stock, cumulative | 213,400,000 | |||||||
Repurchase of common stock | $ 37,206,000 | $ 46,137,000 | $ 80,213,000 | |||||
Accumulated shares repurchased (in shares) | shares | 8,100,000 | |||||||
Uncollared Accelerated Share Repurchase Agreement | Common Stock | ||||||||
Class of Stock | ||||||||
Stock repurchase program authorized | $ 100,000,000 | |||||||
Shares repurchased during period (in shares) | shares | 900,000 | 3,300,000 | ||||||
Share repurchase program, weighted average price (in dollars per share) | $ / shares | $ 23.90 | |||||||
Repurchase of common stock | $ 100,000,000 | |||||||
Shares repurchased (in percentage) | 0.85 | |||||||
Collared Accelerated Share Repurchase Agreements | Common Stock | ||||||||
Class of Stock | ||||||||
Stock repurchase program authorized | $ 100,000,000 | |||||||
Shares repurchased during period (in shares) | shares | 700,000 | 3,300,000 | ||||||
Repurchase of common stock | $ 100,000,000 | |||||||
Common stock, floor price (in dollars per share) | $ / shares | $ 25.35 | |||||||
ATM Program | ||||||||
Class of Stock | ||||||||
Number of share authorized, value | 125,000,000 | |||||||
Cumulative total of sales of common stock | $ 65,800,000 | |||||||
Sales of stock, shares issued (in shares) | shares | 0 | 1,526,163 | 0 | |||||
Proceeds from sale of common stock | $ 45,700,000 | |||||||
ATM Program | Minimum | ||||||||
Class of Stock | ||||||||
Sale of stock share price (in dollars per share) | $ / shares | $ 29.53 | |||||||
ATM Program | Maximum | ||||||||
Class of Stock | ||||||||
Sale of stock share price (in dollars per share) | $ / shares | $ 30.17 |
Equity - Series C Cumulative Re
Equity - Series C Cumulative Redeemable Preferred Stock (Details) - $ / shares | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Preferred stock, authorized (in shares) | 18,400,000 | 18,400,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Interest rate of preferred stock | 6.25% | ||||
Liquidation preference (in dollars per share) | $ 25 | $ 25 | |||
Series C Cumulative Redeemable Preferred Stock | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Preferred stock, authorized (in shares) | 17,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||||
Interest rate of preferred stock | 4.75% | 4.75% | |||
Liquidation preference (in dollars per share) | $ 25 | ||||
Dividend rate (in dollars per share) | 1.1875 | $ 1.1875 | $ 1.1875 | $ 1.1875 | |
Liquidation preference of preferred stock (in dollars per share) | $ 25 | ||||
Series C Preferred Stock | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Interest rate of preferred stock | 4.75% |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 29, 2022 | Sep. 29, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock | ||||||||||||
Common stock, dividends declared (in dollars per share) | $ 1 | $ 1 | $ 1 | |||||||||
Common units, dividends declared (in dollars per share) | 1 | 1 | 1 | |||||||||
Common stock, dividends per share (in dollars per share) | $ 0.250000 | $ 0.250000 | $ 0.250000 | $ 0.250000 | $ 1 | |||||||
Common stock, dividends, percentage | 100% | |||||||||||
Common stock, percentage classified as ordinary dividends | 42.87% | |||||||||||
Interest rate of preferred stock | 6.25% | |||||||||||
Preferred stock, dividends per share (in dollars per share) | 0.296875 | 0.296875 | 0.296875 | 0.445313 | $ 1.335938 | |||||||
Preferred stock, dividend percentage | 100% | |||||||||||
Preferred Stock, percentage classified as ordinary dividends | 100% | |||||||||||
Capital gains dividends, percentage | 0% | |||||||||||
Nondividend distributions, percentage | 57.13% | |||||||||||
Oridnary Dividends | ||||||||||||
Class of Stock | ||||||||||||
Common stock, dividends per share (in dollars per share) | 0.107170 | 0.107170 | 0.107170 | 0.107170 | $ 0.428680 | |||||||
Preferred stock, dividends per share (in dollars per share) | 0.296875 | 0.296875 | 0.296875 | 0.445313 | 1.335938 | |||||||
Non-Qualified Ordinary Dividends | ||||||||||||
Class of Stock | ||||||||||||
Common stock, dividends per share (in dollars per share) | 0.107170 | 0.107170 | 0.107170 | 0.107170 | 0.428680 | |||||||
Preferred stock, dividends per share (in dollars per share) | 0.296875 | 0.296875 | 0.296875 | 0.445313 | 1.335938 | |||||||
Qualified Ordinary Dividends | ||||||||||||
Class of Stock | ||||||||||||
Common stock, dividends per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 | |||||||
Preferred stock, dividends per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 | |||||||
Capital Gains Dividends | ||||||||||||
Class of Stock | ||||||||||||
Common stock, dividends per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 | |||||||
Preferred stock, dividends per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 | |||||||
Return of Capital | ||||||||||||
Class of Stock | ||||||||||||
Common stock, dividends per share (in dollars per share) | 0.142830 | 0.142830 | 0.142830 | 0.142830 | 0.571320 | |||||||
Preferred stock, dividends per share (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 | 0 | |||||||
Series A preferred units | ||||||||||||
Class of Stock | ||||||||||||
Preferred stock, dividends declared (in dollars per share) | 1.5625 | 1.5625 | 1.5625 | |||||||||
Series C Preferred Stock | ||||||||||||
Class of Stock | ||||||||||||
Preferred stock, dividends declared (in dollars per share) | $ 0.2968750 | $ 0.2968750 | $ 0.2968750 | $ 0.2968750 | $ 0.1484375 | $ 1.3359 | $ 0 | $ 0 | ||||
Interest rate of preferred stock | 4.75% | |||||||||||
Capital gains dividends, percentage | 0% | |||||||||||
Nondividend distributions, percentage | 0% |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information | |||
Revenues | $ 1,026,224 | $ 896,835 | $ 804,965 |
Operating expenses | (413,818) | (335,847) | (299,779) |
Gross profit | 612,406 | 560,988 | 505,186 |
General and administrative | 79,501 | 71,346 | 77,882 |
Depreciation and amortization | 373,219 | 343,614 | 299,682 |
Income from unconsolidated real estate entities | (943) | (1,822) | (736) |
Fee income | (7,972) | (3,221) | (2,815) |
Interest expense | 149,901 | 121,939 | 113,823 |
Interest income | (2,340) | (3,794) | (4,089) |
Management services reimbursement income—unconsolidated real estate entities | (4,163) | (1,132) | 0 |
Management services expense—unconsolidated real estate entities | 4,163 | 1,132 | 0 |
Transaction-related expenses | 14,356 | 8,911 | 440 |
Unrealized loss (gain) on non-real estate investments | 1,440 | (16,571) | 2,463 |
Loss on sale of real estate | 2,164 | 0 | 0 |
Impairment loss | 28,548 | 2,762 | 0 |
Loss on extinguishment of debt | 0 | 6,259 | 2,654 |
Other (income) expense | (8,951) | 2,553 | (548) |
Net (loss) income | (16,517) | 29,012 | 16,430 |
Office | |||
Segment Reporting Information | |||
Revenues | 852,700 | 795,370 | 735,919 |
Operating expenses | (308,668) | (280,334) | (262,199) |
Gross profit | 544,032 | 515,036 | 473,720 |
Studio | |||
Segment Reporting Information | |||
Revenues | 173,524 | 101,465 | 69,046 |
Operating expenses | (105,150) | (55,513) | (37,580) |
Gross profit | $ 68,374 | $ 45,952 | $ 31,466 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2021 | Aug. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||||
Management services reimbursement income—unconsolidated real estate entities | $ 4,163,000 | $ 1,132,000 | $ 0 | ||
Operating lease right-of-use assets | 401,051,000 | 287,041,000 | |||
PRESENT VALUE OF OPERATING LEASE LIABILITIES | 399,801,000 | 293,596,000 | |||
Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Rental expense | 1,000,000 | 1,000,000 | $ 0 | ||
Office Space And Fitness Facility | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Operating lease right-of-use assets | 6,100,000 | 7,300,000 | |||
PRESENT VALUE OF OPERATING LEASE LIABILITIES | 6,200,000 | 7,400,000 | |||
Hollywood Media Portfolio | Secured debt | |||||
Related Party Transaction [Line Items] | |||||
Debt instrument, face amount | $ 1,100,000,000 | $ 1,100,000,000 | $ 1,100,000,000 | $ 1,100,000,000 | |
Payments To Acquire Bonds | $ (209,800,000) | (209,800,000) | |||
Proceeds from the redemption of bonds | $ (209,800,000) |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Capital Addition Purchase Commitments | |
Loss Contingencies | |
Commitment to fund amount | $ 254.2 |
Revolving Credit Facility | Unsecured debt | |
Loss Contingencies | |
Letters of credit outstanding | 3.9 |
Real Estate Technology Venture Capital Fund | |
Loss Contingencies | |
Commitment to fund amount | 48 |
Contributions to date | 33.2 |
Amount remaining to be contributed | $ 14.8 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Significant Noncash Transactions | |||
Cash paid for interest, net of capitalized interest | $ 133,869 | $ 112,043 | $ 103,099 |
Non-cash investing and financing activities | |||
Note payable issued as consideration in a business combination | 160,000 | 0 | 0 |
Accounts payable and accrued liabilities for real estate investments | 150,408 | 193,521 | 136,959 |
Lease liabilities recorded in connection with right-of-use assets | 100,805 | 26,824 | 0 |
Ground lease remeasurement | 23,177 | 0 | 0 |
Earnout liability recognized as contingent consideration for business combination | 0 | 11,383 | 0 |
Hudson Pacific Partners, L.P. | |||
Other Significant Noncash Transactions | |||
Cash paid for interest, net of capitalized interest | 133,869 | 112,043 | 103,099 |
Non-cash investing and financing activities | |||
Note payable issued as consideration in a business combination | 160,000 | 0 | 0 |
Accounts payable and accrued liabilities for real estate investments | 150,408 | 193,521 | 136,959 |
Lease liabilities recorded in connection with right-of-use assets | 100,805 | 26,824 | 0 |
Ground lease remeasurement | 23,177 | 0 | 0 |
Earnout liability recognized as contingent consideration for business combination | 0 | 11,383 | 0 |
Series C Preferred Stock | |||
Non-cash investing and financing activities | |||
Series C preferred stock dividend accrual | 0 | 2,281 | 0 |
Series C Preferred Stock | Hudson Pacific Partners, L.P. | |||
Non-cash investing and financing activities | |||
Series C preferred stock dividend accrual | $ 0 | $ 2,281 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 06, 2023 | Jan. 03, 2023 | Jan. 12, 2023 | Dec. 31, 2022 |
Subsequent Event | Skyway Landing, San Francisco Bay Area, CA | Held-for-sale | ||||
Subsequent Event [Line Items] | ||||
Proceeds from sale of real estate | $ 102,000,000 | |||
Unsecured debt | Subsequent Event | Revolving Credit Facility | ||||
Subsequent Event [Line Items] | ||||
Repayments of debt | $ 102,000,000 | |||
Series A notes | Unsecured debt | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Repayments of debt | $ 110,000,000 | |||
1918 Eighth | Subsequent Event | Interest Rate Swaps | Designated as Hedging Instrument | ||||
Subsequent Event [Line Items] | ||||
Notional Amount | $ 172,900,000 | |||
1918 Eighth | Subsequent Event | Minimum | Interest Rate Swaps | Designated as Hedging Instrument | ||||
Subsequent Event [Line Items] | ||||
Fixed interest rate | 3.75% | |||
Hollywood Media Portfolio | Interest Rate Swaps | Designated as Hedging Instrument | ||||
Subsequent Event [Line Items] | ||||
Notional Amount | $ 350,000,000 | |||
Hollywood Media Portfolio | Subsequent Event | Interest Rate Swaps | Designated as Hedging Instrument | ||||
Subsequent Event [Line Items] | ||||
Notional Amount | $ 351,200,000 | |||
Hollywood Media Portfolio | Subsequent Event | Minimum | Interest Rate Swaps | Designated as Hedging Instrument | ||||
Subsequent Event [Line Items] | ||||
Fixed interest rate | 3.31% |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) property | May 19, 2022 USD ($) | Apr. 27, 2022 USD ($) | Dec. 31, 2021 USD ($) | Aug. 31, 2021 USD ($) | |
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | $ 1,999,902,000 | ||||
Initial Costs, Land | 1,435,676,000 | ||||
Initial Costs, Building & Improvements | 4,859,146,000 | ||||
Costs Capitalized Subsequent to Acquisition | 2,528,282,000 | ||||
Total Costs, Land | 1,435,676,000 | ||||
Total Costs, Building & Improvements | 7,387,428,000 | ||||
Total Costs | 8,823,104,000 | ||||
Accumulated depreciation | (1,555,655,000) | ||||
Real estate, federal income tax basis | 8,400,000,000 | ||||
Secured debt | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Notes payable | 1,950,088,000 | $ 1,714,874,000 | |||
Secured debt | Hollywood Media Portfolio | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Debt instrument, face amount | 1,100,000,000 | 1,100,000,000 | $ 1,100,000,000 | ||
Notes payable | 890,186,000 | 890,186,000 | |||
Secured debt | One Westside and 10850 Pico | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Notes payable | 316,602,000 | $ 241,388,000 | |||
Maximum borrowing capacity | 414,600,000 | ||||
Joint venture partner debt | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Notes payable | $ 66,136,000 | ||||
Building and improvements | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Estimated useful life | 39 years | ||||
Land improvements | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Estimated useful life | 15 years | ||||
Sound Stage | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Number of operating lease contracts (contract) | property | 10 | ||||
Washington 1000, Greater Seattle, WA(3) | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Business acquisition, transaction costs | $ 86,313,000 | ||||
Washington 1000, Greater Seattle, WA(3) | Land | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Business acquisition, transaction costs | $ 59,987,000 | ||||
Various | Sound Stage | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Number of operating lease contracts (contract) | property | 27 | ||||
Sunset Gower Studios Land | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Business acquisition, transaction costs | $ 22,156,000 | ||||
Sunset Gower Studios Land | Land | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Business acquisition, transaction costs | $ 22,200,000 | $ 22,156,000 | |||
Office | 875 Howard, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 18,058,000 | ||||
Initial Costs, Building & Improvements | 41,046,000 | ||||
Costs Capitalized Subsequent to Acquisition | 34,225,000 | ||||
Total Costs, Land | 18,058,000 | ||||
Total Costs, Building & Improvements | 75,271,000 | ||||
Total Costs | 93,329,000 | ||||
Accumulated depreciation | (27,487,000) | ||||
Office | 6040 Sunset, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 1,100,000,000 | ||||
Initial Costs, Land | 6,599,000 | ||||
Initial Costs, Building & Improvements | 27,187,000 | ||||
Costs Capitalized Subsequent to Acquisition | 30,493,000 | ||||
Total Costs, Land | 6,599,000 | ||||
Total Costs, Building & Improvements | 57,680,000 | ||||
Total Costs | 64,279,000 | ||||
Accumulated depreciation | (23,323,000) | ||||
Office | ICON, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 164,023,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 164,023,000 | ||||
Total Costs | 164,023,000 | ||||
Accumulated depreciation | (32,911,000) | ||||
Office | CUE, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 49,573,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 49,573,000 | ||||
Total Costs | 49,573,000 | ||||
Accumulated depreciation | (8,089,000) | ||||
Office | EPIC, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 10,606,000 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 215,489,000 | ||||
Total Costs, Land | 10,606,000 | ||||
Total Costs, Building & Improvements | 215,489,000 | ||||
Total Costs | 226,095,000 | ||||
Accumulated depreciation | (25,296,000) | ||||
Office | 1455 Market, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 41,226,000 | ||||
Initial Costs, Building & Improvements | 34,990,000 | ||||
Costs Capitalized Subsequent to Acquisition | 106,171,000 | ||||
Total Costs, Land | 41,226,000 | ||||
Total Costs, Building & Improvements | 141,161,000 | ||||
Total Costs | 182,387,000 | ||||
Accumulated depreciation | (72,938,000) | ||||
Office | Rincon Center, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 58,251,000 | ||||
Initial Costs, Building & Improvements | 110,656,000 | ||||
Costs Capitalized Subsequent to Acquisition | 73,587,000 | ||||
Total Costs, Land | 58,251,000 | ||||
Total Costs, Building & Improvements | 184,243,000 | ||||
Total Costs | 242,494,000 | ||||
Accumulated depreciation | (55,427,000) | ||||
Office | 10950 Washington, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 17,979,000 | ||||
Initial Costs, Building & Improvements | 25,110,000 | ||||
Costs Capitalized Subsequent to Acquisition | 2,174,000 | ||||
Total Costs, Land | 17,979,000 | ||||
Total Costs, Building & Improvements | 27,284,000 | ||||
Total Costs | 45,263,000 | ||||
Accumulated depreciation | (8,309,000) | ||||
Office | 604 Arizona, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 5,620,000 | ||||
Initial Costs, Building & Improvements | 14,745,000 | ||||
Costs Capitalized Subsequent to Acquisition | 4,493,000 | ||||
Total Costs, Land | 5,620,000 | ||||
Total Costs, Building & Improvements | 19,238,000 | ||||
Total Costs | 24,858,000 | ||||
Accumulated depreciation | (6,673,000) | ||||
Office | 275 Brannan, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 4,187,000 | ||||
Initial Costs, Building & Improvements | 8,063,000 | ||||
Costs Capitalized Subsequent to Acquisition | 13,785,000 | ||||
Total Costs, Land | 4,187,000 | ||||
Total Costs, Building & Improvements | 21,848,000 | ||||
Total Costs | 26,035,000 | ||||
Accumulated depreciation | (10,271,000) | ||||
Office | 625 Second, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 10,744,000 | ||||
Initial Costs, Building & Improvements | 42,650,000 | ||||
Costs Capitalized Subsequent to Acquisition | 5,983,000 | ||||
Total Costs, Land | 10,744,000 | ||||
Total Costs, Building & Improvements | 48,633,000 | ||||
Total Costs | 59,377,000 | ||||
Accumulated depreciation | (14,224,000) | ||||
Office | 10900 Washington, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 1,400,000 | ||||
Initial Costs, Building & Improvements | 1,200,000 | ||||
Costs Capitalized Subsequent to Acquisition | 248,000 | ||||
Total Costs, Land | 1,400,000 | ||||
Total Costs, Building & Improvements | 1,448,000 | ||||
Total Costs | 2,848,000 | ||||
Accumulated depreciation | (440,000) | ||||
Office | 901 Market, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 17,882,000 | ||||
Initial Costs, Building & Improvements | 79,305,000 | ||||
Costs Capitalized Subsequent to Acquisition | 22,424,000 | ||||
Total Costs, Land | 17,882,000 | ||||
Total Costs, Building & Improvements | 101,729,000 | ||||
Total Costs | 119,611,000 | ||||
Accumulated depreciation | (29,069,000) | ||||
Office | Element LA, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 168,000,000 | ||||
Initial Costs, Land | 79,769,000 | ||||
Initial Costs, Building & Improvements | 19,755,000 | ||||
Costs Capitalized Subsequent to Acquisition | 96,382,000 | ||||
Total Costs, Land | 79,769,000 | ||||
Total Costs, Building & Improvements | 116,137,000 | ||||
Total Costs | 195,906,000 | ||||
Accumulated depreciation | (29,075,000) | ||||
Office | 3401 Exposition, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 14,120,000 | ||||
Initial Costs, Building & Improvements | 11,319,000 | ||||
Costs Capitalized Subsequent to Acquisition | 12,160,000 | ||||
Total Costs, Land | 14,120,000 | ||||
Total Costs, Building & Improvements | 23,479,000 | ||||
Total Costs | 37,599,000 | ||||
Accumulated depreciation | (7,665,000) | ||||
Office | 505 First, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 22,917,000 | ||||
Initial Costs, Building & Improvements | 133,034,000 | ||||
Costs Capitalized Subsequent to Acquisition | 13,280,000 | ||||
Total Costs, Land | 22,917,000 | ||||
Total Costs, Building & Improvements | 146,314,000 | ||||
Total Costs | 169,231,000 | ||||
Accumulated depreciation | (34,708,000) | ||||
Office | 83 King, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 12,982,000 | ||||
Initial Costs, Building & Improvements | 51,403,000 | ||||
Costs Capitalized Subsequent to Acquisition | 12,434,000 | ||||
Total Costs, Land | 12,982,000 | ||||
Total Costs, Building & Improvements | 63,837,000 | ||||
Total Costs | 76,819,000 | ||||
Accumulated depreciation | (16,874,000) | ||||
Office | Met Park North, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 28,996,000 | ||||
Initial Costs, Building & Improvements | 71,768,000 | ||||
Costs Capitalized Subsequent to Acquisition | 2,211,000 | ||||
Total Costs, Land | 28,996,000 | ||||
Total Costs, Building & Improvements | 73,979,000 | ||||
Total Costs | 102,975,000 | ||||
Accumulated depreciation | (21,333,000) | ||||
Office | 411 First, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 27,684,000 | ||||
Initial Costs, Building & Improvements | 29,824,000 | ||||
Costs Capitalized Subsequent to Acquisition | 25,201,000 | ||||
Total Costs, Land | 27,684,000 | ||||
Total Costs, Building & Improvements | 55,025,000 | ||||
Total Costs | 82,709,000 | ||||
Accumulated depreciation | (15,265,000) | ||||
Office | 450 Alaskan, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 86,952,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 86,952,000 | ||||
Total Costs | 86,952,000 | ||||
Accumulated depreciation | (14,484,000) | ||||
Office | 95 Jackson, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 17,284,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 17,284,000 | ||||
Total Costs | 17,284,000 | ||||
Accumulated depreciation | (2,552,000) | ||||
Office | Palo Alto Square, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 326,033,000 | ||||
Costs Capitalized Subsequent to Acquisition | 48,799,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 374,832,000 | ||||
Total Costs | 374,832,000 | ||||
Accumulated depreciation | (102,650,000) | ||||
Office | 3400 Hillview, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 159,641,000 | ||||
Costs Capitalized Subsequent to Acquisition | (4,948,000) | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 154,693,000 | ||||
Total Costs | 154,693,000 | ||||
Accumulated depreciation | (47,799,000) | ||||
Office | Foothill Research Center, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 133,994,000 | ||||
Costs Capitalized Subsequent to Acquisition | 16,723,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 150,717,000 | ||||
Total Costs | 150,717,000 | ||||
Accumulated depreciation | (53,489,000) | ||||
Office | Page Mill Center, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 147,625,000 | ||||
Costs Capitalized Subsequent to Acquisition | 25,259,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 172,884,000 | ||||
Total Costs | 172,884,000 | ||||
Accumulated depreciation | (49,358,000) | ||||
Office | Clocktower Square, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 93,949,000 | ||||
Costs Capitalized Subsequent to Acquisition | 17,221,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 111,170,000 | ||||
Total Costs | 111,170,000 | ||||
Accumulated depreciation | (26,027,000) | ||||
Office | 3176 Porter, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 34,561,000 | ||||
Costs Capitalized Subsequent to Acquisition | 1,073,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 35,634,000 | ||||
Total Costs | 35,634,000 | ||||
Accumulated depreciation | (10,910,000) | ||||
Office | Towers at Shore Center, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 72,673,000 | ||||
Initial Costs, Building & Improvements | 144,188,000 | ||||
Costs Capitalized Subsequent to Acquisition | 23,951,000 | ||||
Total Costs, Land | 72,673,000 | ||||
Total Costs, Building & Improvements | 168,139,000 | ||||
Total Costs | 240,812,000 | ||||
Accumulated depreciation | (44,268,000) | ||||
Office | Skyway Landing, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 37,959,000 | ||||
Initial Costs, Building & Improvements | 63,559,000 | ||||
Costs Capitalized Subsequent to Acquisition | 5,014,000 | ||||
Total Costs, Land | 37,959,000 | ||||
Total Costs, Building & Improvements | 68,573,000 | ||||
Total Costs | 106,532,000 | ||||
Accumulated depreciation | (14,384,000) | ||||
Office | Shorebreeze, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 69,448,000 | ||||
Initial Costs, Building & Improvements | 59,806,000 | ||||
Costs Capitalized Subsequent to Acquisition | 23,217,000 | ||||
Total Costs, Land | 69,448,000 | ||||
Total Costs, Building & Improvements | 83,023,000 | ||||
Total Costs | 152,471,000 | ||||
Accumulated depreciation | (20,525,000) | ||||
Office | 555 Twin Dolphin, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 40,614,000 | ||||
Initial Costs, Building & Improvements | 73,457,000 | ||||
Costs Capitalized Subsequent to Acquisition | 17,062,000 | ||||
Total Costs, Land | 40,614,000 | ||||
Total Costs, Building & Improvements | 90,519,000 | ||||
Total Costs | 131,133,000 | ||||
Accumulated depreciation | (20,038,000) | ||||
Office | 333 Twin Dolphin, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 36,441,000 | ||||
Initial Costs, Building & Improvements | 64,892,000 | ||||
Costs Capitalized Subsequent to Acquisition | 20,418,000 | ||||
Total Costs, Land | 36,441,000 | ||||
Total Costs, Building & Improvements | 85,310,000 | ||||
Total Costs | 121,751,000 | ||||
Accumulated depreciation | (19,918,000) | ||||
Office | Metro Center, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 313,683,000 | ||||
Costs Capitalized Subsequent to Acquisition | 65,028,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 378,711,000 | ||||
Total Costs | 378,711,000 | ||||
Accumulated depreciation | (90,199,000) | ||||
Office | Concourse, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 45,085,000 | ||||
Initial Costs, Building & Improvements | 224,271,000 | ||||
Costs Capitalized Subsequent to Acquisition | 56,834,000 | ||||
Total Costs, Land | 45,085,000 | ||||
Total Costs, Building & Improvements | 281,105,000 | ||||
Total Costs | 326,190,000 | ||||
Accumulated depreciation | (66,571,000) | ||||
Office | Gateway, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 33,117,000 | ||||
Initial Costs, Building & Improvements | 121,217,000 | ||||
Costs Capitalized Subsequent to Acquisition | 54,749,000 | ||||
Total Costs, Land | 33,117,000 | ||||
Total Costs, Building & Improvements | 175,966,000 | ||||
Total Costs | 209,083,000 | ||||
Accumulated depreciation | (48,494,000) | ||||
Office | Metro Plaza, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 16,038,000 | ||||
Initial Costs, Building & Improvements | 106,156,000 | ||||
Costs Capitalized Subsequent to Acquisition | 67,792,000 | ||||
Total Costs, Land | 16,038,000 | ||||
Total Costs, Building & Improvements | 173,948,000 | ||||
Total Costs | 189,986,000 | ||||
Accumulated depreciation | (32,971,000) | ||||
Office | 1740 Technology, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 8,052,000 | ||||
Initial Costs, Building & Improvements | 49,486,000 | ||||
Costs Capitalized Subsequent to Acquisition | 13,209,000 | ||||
Total Costs, Land | 8,052,000 | ||||
Total Costs, Building & Improvements | 62,695,000 | ||||
Total Costs | 70,747,000 | ||||
Accumulated depreciation | (12,550,000) | ||||
Office | Skyport Plaza, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 29,033,000 | ||||
Initial Costs, Building & Improvements | 153,844,000 | ||||
Costs Capitalized Subsequent to Acquisition | 6,132,000 | ||||
Total Costs, Land | 29,033,000 | ||||
Total Costs, Building & Improvements | 159,976,000 | ||||
Total Costs | 189,009,000 | ||||
Accumulated depreciation | (31,845,000) | ||||
Office | Techmart, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 66,660,000 | ||||
Costs Capitalized Subsequent to Acquisition | 21,335,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 87,995,000 | ||||
Total Costs | 87,995,000 | ||||
Accumulated depreciation | (21,854,000) | ||||
Office | Fourth & Traction, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 12,140,000 | ||||
Initial Costs, Building & Improvements | 37,110,000 | ||||
Costs Capitalized Subsequent to Acquisition | 69,146,000 | ||||
Total Costs, Land | 12,140,000 | ||||
Total Costs, Building & Improvements | 106,256,000 | ||||
Total Costs | 118,396,000 | ||||
Accumulated depreciation | (23,767,000) | ||||
Office | Maxwell, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 13,040,000 | ||||
Initial Costs, Building & Improvements | 26,960,000 | ||||
Costs Capitalized Subsequent to Acquisition | 57,764,000 | ||||
Total Costs, Land | 13,040,000 | ||||
Total Costs, Building & Improvements | 84,724,000 | ||||
Total Costs | 97,764,000 | ||||
Accumulated depreciation | (14,493,000) | ||||
Office | 11601 Wilshire, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 28,978,000 | ||||
Initial Costs, Building & Improvements | 321,273,000 | ||||
Costs Capitalized Subsequent to Acquisition | 62,801,000 | ||||
Total Costs, Land | 28,978,000 | ||||
Total Costs, Building & Improvements | 384,074,000 | ||||
Total Costs | 413,052,000 | ||||
Accumulated depreciation | (75,966,000) | ||||
Office | Hill7, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 101,000,000 | ||||
Initial Costs, Land | 36,888,000 | ||||
Initial Costs, Building & Improvements | 137,079,000 | ||||
Costs Capitalized Subsequent to Acquisition | 19,528,000 | ||||
Total Costs, Land | 36,888,000 | ||||
Total Costs, Building & Improvements | 156,607,000 | ||||
Total Costs | 193,495,000 | ||||
Accumulated depreciation | (34,045,000) | ||||
Office | Page Mill Hill, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 131,402,000 | ||||
Costs Capitalized Subsequent to Acquisition | 13,058,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 144,460,000 | ||||
Total Costs | 144,460,000 | ||||
Accumulated depreciation | (29,477,000) | ||||
Office | Harlow, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 7,455,000 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 80,474,000 | ||||
Total Costs, Land | 7,455,000 | ||||
Total Costs, Building & Improvements | 80,474,000 | ||||
Total Costs | 87,929,000 | ||||
Accumulated depreciation | (4,517,000) | ||||
Office | One Westside, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 316,602,000 | ||||
Initial Costs, Land | 110,438,000 | ||||
Initial Costs, Building & Improvements | 35,011,000 | ||||
Costs Capitalized Subsequent to Acquisition | 362,729,000 | ||||
Total Costs, Land | 110,438,000 | ||||
Total Costs, Building & Improvements | 397,740,000 | ||||
Total Costs | 508,178,000 | ||||
Accumulated depreciation | (28,980,000) | ||||
Office | 10850 Pico, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 34,682,000 | ||||
Initial Costs, Building & Improvements | 16,313,000 | ||||
Costs Capitalized Subsequent to Acquisition | 5,998,000 | ||||
Total Costs, Land | 34,682,000 | ||||
Total Costs, Building & Improvements | 22,311,000 | ||||
Total Costs | 56,993,000 | ||||
Accumulated depreciation | (1,657,000) | ||||
Office | Ferry Building, San Francisco Bay Area, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 268,292,000 | ||||
Costs Capitalized Subsequent to Acquisition | 33,224,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 301,516,000 | ||||
Total Costs | 301,516,000 | ||||
Accumulated depreciation | (38,387,000) | ||||
Office | 1918 Eighth, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 314,300,000 | ||||
Initial Costs, Land | 38,476,000 | ||||
Initial Costs, Building & Improvements | 545,773,000 | ||||
Costs Capitalized Subsequent to Acquisition | 31,400,000 | ||||
Total Costs, Land | 38,476,000 | ||||
Total Costs, Building & Improvements | 577,173,000 | ||||
Total Costs | 615,649,000 | ||||
Accumulated depreciation | (38,267,000) | ||||
Office | 5th & Bell, Greater Seattle, WA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 20,867,000 | ||||
Initial Costs, Building & Improvements | 82,072,000 | ||||
Costs Capitalized Subsequent to Acquisition | 15,511,000 | ||||
Total Costs, Land | 20,867,000 | ||||
Total Costs, Building & Improvements | 97,583,000 | ||||
Total Costs | 118,450,000 | ||||
Accumulated depreciation | (4,705,000) | ||||
Office | Washington 1000, Greater Seattle, WA(3) | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 59,987,000 | ||||
Initial Costs, Building & Improvements | 11,053,000 | ||||
Costs Capitalized Subsequent to Acquisition | 80,278,000 | ||||
Total Costs, Land | 59,987,000 | ||||
Total Costs, Building & Improvements | 91,331,000 | ||||
Total Costs | 151,318,000 | ||||
Accumulated depreciation | 0 | ||||
Office | 5801 Bobby Foster Road, Albuquerque, NM | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 2,189,000 | ||||
Initial Costs, Building & Improvements | 6,268,000 | ||||
Costs Capitalized Subsequent to Acquisition | 116,000 | ||||
Total Costs, Land | 2,189,000 | ||||
Total Costs, Building & Improvements | 6,384,000 | ||||
Total Costs | 8,573,000 | ||||
Accumulated depreciation | (89,000) | ||||
Studio | Sunset Gower Studios, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 101,476,000 | ||||
Initial Costs, Building & Improvements | 64,697,000 | ||||
Costs Capitalized Subsequent to Acquisition | 79,189,000 | ||||
Total Costs, Land | 101,476,000 | ||||
Total Costs, Building & Improvements | 143,886,000 | ||||
Total Costs | 245,362,000 | ||||
Accumulated depreciation | (41,308,000) | ||||
Studio | Sunset Bronson Studios, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 67,092,000 | ||||
Initial Costs, Building & Improvements | 32,374,000 | ||||
Costs Capitalized Subsequent to Acquisition | 50,030,000 | ||||
Total Costs, Land | 67,092,000 | ||||
Total Costs, Building & Improvements | 82,404,000 | ||||
Total Costs | 149,496,000 | ||||
Accumulated depreciation | (29,129,000) | ||||
Studio | Sunset Las Palmas Studios, Los Angeles, CA | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 134,488,000 | ||||
Initial Costs, Building & Improvements | 104,392,000 | ||||
Costs Capitalized Subsequent to Acquisition | 51,001,000 | ||||
Total Costs, Land | 134,488,000 | ||||
Total Costs, Building & Improvements | 155,393,000 | ||||
Total Costs | 289,881,000 | ||||
Accumulated depreciation | (20,605,000) | ||||
Studio | Various | |||||
SEC Schedule III, Real Estate and Accumulated Depreciation | |||||
Encumbrances | 0 | ||||
Initial Costs, Land | 0 | ||||
Initial Costs, Building & Improvements | 0 | ||||
Costs Capitalized Subsequent to Acquisition | 48,595,000 | ||||
Total Costs, Land | 0 | ||||
Total Costs, Building & Improvements | 48,595,000 | ||||
Total Costs | 48,595,000 | ||||
Accumulated depreciation | $ 0 |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Carrying Amount of Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Beginning balance | $ 8,361,477 | $ 8,215,017 | $ 7,269,128 |
Asset acquisitions | 101,653 | 102,939 | 584,250 |
Business acquisitions | 47,741 | 0 | 0 |
Improvements, capitalized costs | 553,327 | 394,633 | 415,602 |
Total additions during period | 702,721 | 497,572 | 999,852 |
Disposals (fully depreciated assets and early terminations) | (51,812) | (56,166) | (53,963) |
Impairment loss | (17,636) | (2,762) | 0 |
Cost of property sold | (171,646) | 0 | 0 |
Total deductions during period | (241,094) | (58,928) | (53,963) |
Ending balance | 8,823,104 | 8,653,661 | 8,215,017 |
Reclassification to assets associated with real estate held for sale | (106,532) | (292,184) | 0 |
TOTAL INVESTMENT IN REAL ESTATE, END OF YEAR | 8,716,572 | 8,361,477 | 8,215,017 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation | |||
Total accumulated depreciation, beginning of year | (1,283,774) | (1,102,748) | (898,279) |
Depreciation of real estate | (368,376) | (292,802) | (258,732) |
Total additions during period | (368,376) | (292,802) | (258,732) |
Deletions | 55,939 | 56,370 | 54,263 |
Write-offs due to sale | 40,556 | 0 | 0 |
Total deductions during period | 96,495 | 56,370 | 54,263 |
Ending balance, before reclassification to assets associated with real estate held for sale | (1,555,655) | (1,339,180) | (1,102,748) |
Reclassification to assets associated with real estate held for sale | 14,384 | 55,406 | 0 |
TOTAL ACCUMULATED DEPRECIATION, END OF YEAR | $ (1,541,271) | $ (1,283,774) | $ (1,102,748) |