Hudson Pacific Properties Inc
For the period ended Dec 31, 2023. Filed Feb 16, 2024.
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FY2023 · Filed Feb 16, 2024
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Schedule III - Real Estate and Accumulated Depreciation
December 31, 2023
(In thousands)
| Initial Costs · Total Adjustment to Basis(1) · Total Costs · Year Built / Renovated | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property name · Encumbrances · Land · Building & Improvements · Land · Building & Improvements · Total · Accumulated Depreciation(2) · Year Acquired | ||||||||||
| Office | ||||||||||
| 875 Howard, San Francisco Bay Area, CA | $— | $18,058 | $41,046 | $43,512 | $18,058 | $84,558 | $102,616 | $(27,310) | 1920/2001 | 2007 |
| 6040 Sunset, Los Angeles, CA(3) | 1,100,000 | 6,599 | 27,187 | 31,289 | 6,599 | 58,476 | 65,075 | (25,674) | 2008 | 2008 |
| ICON, Los Angeles, CA(3) | — | — | — | 164,133 | — | 164,133 | 164,133 | (38,569) | 2017 | 2008 |
| CUE, Los Angeles, CA(3) | — | — | — | 49,553 | — | 49,553 | 49,553 | (9,758) | 2017 | 2008 |
| EPIC, Los Angeles, CA(3) | — | 10,606 | — | 215,477 | 10,606 | 215,477 | 226,083 | (33,306) | 2019 | 2008 |
| 1455 Market, San Francisco Bay Area, CA | — | 41,226 | 34,990 | 95,870 | 41,226 | 130,860 | 172,086 | (75,234) | 1976/2016 | 2010 |
| Rincon Center, San Francisco Bay Area, CA | — | 58,251 | 110,656 | 73,892 | 58,251 | 184,548 | 242,799 | (61,774) | 1961/2020 | 2010 |
| 10950 Washington, Los Angeles, CA | — | 17,979 | 25,110 | 6,982 | 17,979 | 32,092 | 50,071 | (8,136) | 1957/1974 | 2010 |
| 275 Brannan, San Francisco Bay Area, CA | — | 4,187 | 8,063 | 13,852 | 4,187 | 21,915 | 26,102 | (11,534) | 1905/2013 | 2011 |
| 625 Second, San Francisco Bay Area, CA | — | 10,744 | 42,650 | 6,028 | 10,744 | 48,678 | 59,422 | (15,426) | 1906/1999 | 2011 |
| 10900 Washington, Los Angeles, CA | — | 1,400 | 1,200 | 398 | 1,400 | 1,598 | 2,998 | (440) | 1973 | 2012 |
| 901 Market, San Francisco Bay Area, CA | — | 17,882 | 79,305 | 21,645 | 17,882 | 100,950 | 118,832 | (32,877) | 1912/1985 | 2012 |
| Element LA, Los Angeles, CA | 168,000 | 79,769 | 19,755 | 96,827 | 79,769 | 116,582 | 196,351 | (32,896) | 1949/2015 | 2012 2013 |
| 505 First, Greater Seattle, WA | — | 22,917 | 133,034 | 18,361 | 22,917 | 151,395 | 174,312 | (39,683) | 2010 | 2013 |
| 83 King, Greater Seattle, WA | — | 12,982 | 51,403 | 12,894 | 12,982 | 64,297 | 77,279 | (19,595) | 1904/2017 | 2013 |
| Met Park North, Greater Seattle, WA | — | 28,996 | 71,768 | (1,373) | 28,996 | 70,395 | 99,391 | (19,483) | 2000 | 2013 |
| 411 First, Greater Seattle, WA | — | 27,684 | 29,824 | 27,037 | 27,684 | 56,861 | 84,545 | (18,465) | 1906/2017 | 2014 |
| 450 Alaskan, Greater Seattle, WA | — | — | — | 87,099 | — | 87,099 | 87,099 | (17,343) | 2017 | 2014 |
| 95 Jackson, Greater Seattle, WA | — | — | — | 18,251 | — | 18,251 | 18,251 | (3,510) | 1909/2018 | 2014 |
| Palo Alto Square, San Francisco Bay Area, CA | — | — | 326,033 | 47,941 | — | 373,974 | 373,974 | (115,721) | 1971/2018 | 2015 |
| 3400 Hillview, San Francisco Bay Area, CA | — | — | 159,641 | (4,903) | — | 154,738 | 154,738 | (53,984) | 1991 | 2015 |
| Foothill Research Center, San Francisco Bay Area, CA | — | — | 133,994 | (33,036) | — | 100,958 | 100,958 | (60,729) | 1991 | 2015 |
| Page Mill Center, San Francisco Bay Area, CA | — | — | 147,625 | 20,591 | — | 168,216 | 168,216 | (52,347) | 1970/2020 | 2015 |
| Clocktower Square, San Francisco Bay Area, CA | — | — | 93,949 | 16,965 | — | 110,914 | 110,914 | (31,083) | 1983/2019 | 2015 |
| 3176 Porter, San Francisco Bay Area, CA | — | — | 34,561 | 1,133 | — | 35,694 | 35,694 | (12,382) | 1991 | 2015 |
| Towers at Shore Center, San Francisco Bay Area, CA | — | 72,673 | 144,188 | 22,221 | 72,673 | 166,409 | 239,082 | (49,496) | 2001 | 2015 |
| Shorebreeze, San Francisco Bay Area, CA | — | 69,448 | 59,806 | 22,162 | 69,448 | 81,968 | 151,416 | (21,131) | 1987 | 2015 |
| 555 Twin Dolphin, San Francisco Bay Area, CA | — | 40,614 | 73,457 | 19,748 | 40,614 | 93,205 | 133,819 | (24,444) | 1989 | 2015 |
| 333 Twin Dolphin, San Francisco Bay Area, CA | — | 36,441 | 64,892 | 20,483 | 36,441 | 85,375 | 121,816 | (24,230) | 1985/2017 | 2015 |
| Initial Costs · Total Adjustment to Basis(1) · Total Costs · Year Built / Renovated | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Property name · Encumbrances · Land · Building & Improvements · Land · Building & Improvements · Total · Accumulated Depreciation(2) · Year Acquired | ||||||||||
| Metro Center, San Francisco Bay Area, CA | — | — | 313,683 | 81,169 | — | 394,852 | 394,852 | (101,246) | 1986/2020 | 2015 |
| Concourse, San Francisco Bay Area, CA | — | 45,085 | 224,271 | 74,083 | 45,085 | 298,354 | 343,439 | (77,607) | 1990/2022 | 2015 |
| Gateway, San Francisco Bay Area, CA | — | 33,117 | 121,217 | 61,841 | 33,117 | 183,058 | 216,175 | (50,731) | 1985/2017 | 2015 |
| Metro Plaza, San Francisco Bay Area, CA | — | 16,038 | 106,156 | 69,731 | 16,038 | 175,887 | 191,925 | (37,858) | 1986/2021 | 2015 |
| 1740 Technology, San Francisco Bay Area, CA | — | 8,052 | 49,486 | 15,030 | 8,052 | 64,516 | 72,568 | (15,956) | 1985 | 2015 |
| Skyport Plaza, San Francisco Bay Area, CA(4) | — | 16,521 | 153,844 | (561) | 16,521 | 153,283 | 169,804 | (35,417) | 2001 | 2015 |
| Techmart, San Francisco Bay Area, CA | — | — | 66,660 | 20,236 | — | 86,896 | 86,896 | (24,028) | 1986/2019 | 2015 |
| Fourth & Traction, Los Angeles, CA | — | 12,140 | 37,110 | 69,173 | 12,140 | 106,283 | 118,423 | (29,779) | 1915/2017 | 2015 |
| Maxwell, Los Angeles, CA | — | 13,040 | 26,960 | 57,986 | 13,040 | 84,946 | 97,986 | (18,484) | 1924/2019 | 2015 |
| 11601 Wilshire, Los Angeles, CA | — | 28,978 | 321,273 | 67,958 | 28,978 | 389,231 | 418,209 | (90,357) | 1983/2018 | 2016 2017 |
| Hill7, Greater Seattle, WA | 101,000 | 36,888 | 137,079 | 19,913 | 36,888 | 156,992 | 193,880 | (39,881) | 2015 | 2016 |
| Page Mill Hill, San Francisco Bay Area, CA | — | — | 131,402 | 11,798 | — | 143,200 | 143,200 | (33,186) | 1975/2020 | 2016 |
| Harlow, Los Angeles, CA | — | 7,455 | — | — | 7,455 | — | 7,455 | (7,591) | 2020 | 2017 |
| Ferry Building, San Francisco Bay Area, CA(5) | — | — | 268,292 | 44,587 | — | 312,879 | 312,879 | (48,559) | 1898/2003 | 2018 |
| 1918 Eighth, Greater Seattle, WA | 314,300 | 38,477 | 545,773 | 31,552 | 38,477 | 577,324 | 615,801 | (57,508) | 2009 | 2020 |
| 5th & Bell, Greater Seattle, WA | — | 20,866 | 82,072 | 16,355 | 20,866 | 98,427 | 119,293 | (9,531) | 2002 | 2021 |
| Washington 1000, Greater Seattle, WA | — | 59,980 | 11,053 | 184,878 | 59,980 | 195,931 | 255,911 | — | Under development | 2022 |
| 5801 Bobby Foster Road, Albuquerque, NM | — | 2,189 | 6,268 | 429 | 2,189 | 6,697 | 8,886 | (357) | 2008 | 2022 |
| Sunset Gower Studios, Los Angeles, CA(3) | — | 101,477 | 64,697 | 83,040 | 101,477 | 147,737 | 249,214 | (46,840) | Various | 2007 2011 2012 |
| Sunset Bronson Studios, Los Angeles, CA(3) | — | 67,092 | 32,374 | 51,044 | 67,092 | 83,418 | 150,510 | (34,005) | Various | 2008 |
| Sunset Las Palmas Studios, Los Angeles, CA(3) | — | 134,488 | 104,392 | 148,492 | 134,488 | 252,884 | 387,372 | (26,401) | Various | 2017 2018 |
| Various(6) | — | — | — | 50,592 | — | 50,593 | 50,593 | (6,555) | N/A | 2022 |
| TOTAL | $1,683,300 | $1,220,339 | $4,718,199 | $2,274,358 | $1,220,339 | $6,992,557 | $8,212,896 | $(1,728,437) | ||
Consists of capital expenditures and real estate development costs, write-offs due to disposals and impairment charges.
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.
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.
During the year ended December 31, 2023, the Company sold a parcel of land at Skyport Plaza with an initial basis of $12.5 million and improvements capitalized subsequent to acquisition of $8.3 million.
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.
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 $7.9 billion, unaudited as of December 31, 2023.
The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2021 to December 31, 2023:
| Year Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Total investment in real estate, beginning of year | $8,716,572 | $8,361,477 | $8,215,017 |
| Additions during period: | |||
| Asset acquisitions | — | 101,653 | 102,939 |
| Business acquisitions | — | 47,741 | — |
| Improvements, capitalized costs | 353,544 | 553,327 | 394,633 |
| Total additions during period | 353,544 | 702,721 | 497,572 |
| Deductions during period | |||
| Disposals (fully depreciated assets and early terminations) | (67,177) | (51,812) | (56,166) |
| Impairment loss | (48,480) | (17,636) | (2,762) |
| Cost of property sold | (741,563) | (171,646) | — |
| Total deductions during period | (857,220) | (241,094) | (58,928) |
| Ending balance, before reclassification to assets associated with real estate held for sale | 8,212,896 | 8,823,104 | 8,653,661 |
| Reclassification to assets associated with real estate held for sale | — | (106,532) | (292,184) |
| TOTAL INVESTMENT IN REAL ESTATE, END OF YEAR | $8,212,896 | $8,716,572 | $8,361,477 |
| Total accumulated depreciation, beginning of year | $(1,541,271) | $(1,283,774) | $(1,102,748) |
| Additions during period: | |||
| Depreciation of real estate | (340,019) | (368,376) | (292,802) |
| Total additions during period | (340,019) | (368,376) | (292,802) |
| Deductions during period: | |||
| Deletions | 66,122 | 55,939 | 56,370 |
| Write-offs due to sale | 86,731 | 40,556 | — |
| Total deductions during period | 152,853 | 96,495 | 56,370 |
| Ending balance, before reclassification to assets associated with real estate held for sale | (1,728,437) | (1,555,655) | (1,339,180) |
| Reclassification to assets associated with real estate held for sale | — | 14,384 | 55,406 |
| TOTAL ACCUMULATED DEPRECIATION, END OF YEAR | $(1,728,437) | $(1,541,271) | $(1,283,774) |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.