Derivatives (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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, 2025 and December 31, 2024:


Underlying Debt Instrument	Type of Instrument	Accounting Policy(1)	Notional Amount		Effective Date	Maturity Date	Interest Rate (Range)	Fair Value Assets (Liabilities)
								December 31, 2025		December 31, 2024
1918 Eighth	Swap	Mark-to-market(2)	$	172,865	February 2023	October 2025	3.75%	—		524
1918 Eighth	Cap	Partial cash flow hedge	$	314,300	June 2023	December 2025(3)	5.00%	—		62
1918 Eighth	Sold cap	Mark-to-market	$	172,865	June 2023	December 2025(3)	5.00%	—		(34)
Hollywood Media Portfolio CMBS	Swap	Cash flow hedge	$	351,186	August 2023	June 2026	3.31%	430		3,663
Hollywood Media Portfolio CMBS	Swap	Cash flow hedge	$	180,000	February 2024	August 2026	4.13%	(660)		(267)
Hollywood Media Portfolio CMBS	Cap	Partial cash flow hedge(4)	$	1,100,000	August 2024	August 2025	6.01%	—		4
Hollywood Media Portfolio CMBS	Sold cap(5)	Mark-to-market	$	561,000	August 2024	August 2025	6.01%	—		(2)
Hollywood Media Portfolio CMBS	Cap	Partial cash flow hedge(4)	$	1,100,000	August 2025	August 2026	4.95%	—		—
Hollywood Media Portfolio CMBS	Sold cap(5)	Mark-to-market	$	561,000	August 2025	August 2026	4.95%	—		—
Sunset Glenoaks Studios(6)	Cap	Cash flow hedge	$	100,600	January 2025	January 2026	4.50%	—		72
Office Portfolio CMBS	Cap	Mark-to-market	$	475,000	March 2025	April 2027	4.96%	14		—
Office Portfolio CMBS	Sold cap(5)	Mark-to-market	$	475,000	March 2025	April 2027	4.96%	(14)		—
Office Portfolio CMBS(7)	Cap	Cash flow hedge(8)	$	11,250	December 2025	February 2027	3.35%	15		—
Office Portfolio CMBS(9)	Swap	Cash flow hedge(8)	$	250,000	December 2025	April 2029	3.41%	(732)		—
N/A	Corridor	Mark-to-market	$	425,000	January 2026	March 2026	0.53% - 3.35%	2,901		—
TOTAL								$	1,954	$	4,022

_____________

1.Accounting policy elections are as of December 31, 2025, which may be different than the policy elections as of December 31, 2024 for the corresponding instrument.

2.This swap was accounted for as a cash flow hedge through August 2025, at which point the underlying loan was refinanced with with a fixed-rate loan and the swap no longer qualified for hedge accounting.

3.The cap and sold cap were early terminated on September 2, 2025.

4.$539 thousand of the notional amount of the Hollywood Media Portfolio CMBS cap has been designated as an effective cash flow hedge for accounting purposes. The remainder is accounted for under mark-to-market accounting.

5.The sold caps serve to offset the changes in fair value of the portion of the Hollywood Media Portfolio CMBS cap that is not designated as a cash flow hedge for accounting purposes and the change in fair value of the full Office Portfolio CMBS cap, which is not designated as a cash flow hedge for accounting purposes.

6.Sunset Glenoaks Studios was consolidated as of December 31, 2024 and unconsolidated as of December 31, 2025. Therefore, the fair value of the derivative instrument as of December 31, 2025 is reported at $0.

7.The notional amount decreases on a monthly basis to follow the amortization of the underlying debt instrument.

8.During the fourth quarter of 2025, hedge accounting for the Office Portfolio CMBS cap and swap was discontinued due to a change in the probability of the related forecasted transactions as a result of the early partial repayment of the Office Portfolio CMBS loan. Accordingly, $713 thousand and $27 thousand of losses for the cap and swap, respectively, were reclassified from accumulated other comprehensive loss as an increase in loss on extinguishment of debt on the Consolidated Statement of Operations. The Company subsequently modified the notional amount of the instruments and re-designated the instruments as effective cash flow hedges prospectively.

9.The notional amount will decrease on a monthly basis to follow the amortization of the underlying debt instrument commencing in February 2027.

Hudson Pacific Properties, Inc. 10-K