v3.25.1
Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt Debt
The following table sets forth information with respect to the Company’s outstanding indebtedness:
March 31, 2025December 31, 2024
Interest Rate(1)
Contractual Maturity Date(2)
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(3)(4)(5)
$23,000 $320,000 
SOFR + 1.15% to 1.60%
12/21/2026(6)
Series B notes(7)
259,000 259,000 4.69%12/16/2025
Series C notes(7)
56,000 56,000 4.79%12/16/2027
Series D notes(7)
150,000 150,000 3.98%7/6/2026
3.95% Registered senior notes
400,000 400,000 3.95%11/1/2027
4.65% Registered senior notes
500,000 500,000 4.65%4/1/2029
3.25% Registered senior notes
400,000 400,000 3.25%1/15/2030
5.95% Registered senior notes(8)
350,000 350,000 5.95%2/15/2028
Total unsecured debt2,138,000 2,435,000 
Secured debt
Hollywood Media Portfolio CMBS1,100,000 1,100,000 
SOFR + 1.10%
8/9/2026(9)
Acquired Hollywood Media Portfolio CMBS debt(30,233)(30,233)
SOFR + 2.11%
8/9/2026(9)
Hollywood Media Portfolio CMBS, net(10)(11)
1,069,767 1,069,767 
Element LA— 168,000 4.59%11/6/2025
1918 Eighth(12)
314,300 314,300 
SOFR + 1.40%
12/18/2025
Hill7(13)
101,000 101,000 3.38%11/6/2028
Sunset Glenoaks Studios(14)
100,600 99,600 
SOFR + 3.10%
1/9/2027(15)
Office Portfolio CMBS(16)(17)
475,000 — 
SOFR + 3.76%
4/9/2030(18)
Total secured debt2,060,667 1,752,667 
Total unsecured and secured debt4,198,667 4,187,667 
Unamortized deferred financing costs/loan discounts(19)
(20,324)(10,823)
TOTAL UNSECURED AND SECURED DEBT, NET$4,178,343 $4,176,844 
JOINT VENTURE PARTNER DEBT(20)
$66,136 $66,136 4.50%10/9/2032(21)
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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 March 31, 2025, which may be different than the interest rates as of December 31, 2024 for the 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 March 31, 2025, no such election had been made and the unsecured revolving credit facility bore interest at SOFR + 1.35%.
4.The Company has a total capacity of $775.0 million available under its unsecured revolving credit facility, up to $193.8 million of which can be used for borrowings in pounds sterling or Canadian dollars. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Fourth Amended and Restated Credit Agreement up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan.
5.Subsequent to March 31, 2025, the Company made a net borrowing of $507.0 million on the unsecured revolving credit facility.
6.Includes the option to extend the initial maturity date of December 21, 2025 twice for an additional six-month term each at the sole discretion of the Company.
7.Subsequent to March 31, 2025, the Company tendered for the full repayment of this note.
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 at the sole discretion of the Company. The first and second extension options were executed on August 9, 2023 and June 13, 2024, respectively.
10.The Company purchased bonds comprising the loan in the amount of $30.2 million.
11.The floating interest rate on $539.0 million of principal has been capped at 6.01% through the use of an interest rate cap. The floating interest rate on $351.2 million of principal is effectively fixed at 3.31% through the use of an interest rate swap. The floating interest rate on $179.6 million of principal is effectively fixed at 4.13% through the use of an interest rate swap.
12.This loan is interest-only through its term. The floating interest rate on $141.4 million of principal has been capped at 5.00% through the use of an interest rate cap. The floating interest rate on the remaining $172.9 million of principal has been effectively fixed at 3.75% through the use of an interest rate swap.
13.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.
14.This loan has a total capacity of $100.6 million and an initial interest rate of SOFR + 3.10% per annum until the construction at Sunset Glenoaks Studios is complete and certain performance targets have been met, at which time the effective interest rate will decrease to SOFR + 2.50%. This loan is interest-only through its term. The floating interest rate on the full principal amount has been effectively capped at 4.50% through the use of an interest rate cap.
15.Includes the option to extend the initial maturity date of January 9, 2025 twice for an additional one-year term each permitting certain financial covenants are met. The first extension option was executed on October 30, 2024.
16.This loan is secured by six office properties: Element LA, 11601 Wilshire, 5th & Bell, 450 Alaskan, 1740 Technology and 275 Brannan (collectively “Office Portfolio CMBS”).
17.The loan requires monthly payments of principal and interest.
18.Includes the option to extend the initial maturity date of April 9, 2027 three times for an additional one-year term each permitting certain financial and other covenants are met.
19.Excludes deferred financing costs related to the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. Refer to Note 8 for details.
20.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.
21.Includes the option to extend the initial maturity date of October 9, 2028 twice for an additional two-year term each permitting certain financial covenants are met.

Current Year Activity

During the three months ended March 31, 2025, there were $297.0 million of repayments on the unsecured revolving credit facility, net of borrowings. 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.

During the three months ended March 31, 2025, the Company secured the Office Portfolio CMBS loan (a commercial mortgage-backed securities loan) with an aggregate principal amount of $475.0 million. This loan is secured by six office properties. The Company used the proceeds from the loan to repay $259.0 million on its unsecured revolving credit facility and to repay the $168.0 million loan secured by the Element LA property. The early repayment of the Element LA loan resulted in a $1.9 million loss on extinguishment of debt on the Consolidated Statement of Operations. Subsequent to March 31, 2025, the Company entered into an interest rate swap agreement to fix SOFR at a rate of 3.4075% on $250.0 million and an interest rate cap agreement to cap SOFR at a rate of 3.35% on $224.2 million of the Office Portfolio CMBS loan

During the three months ended March 31, 2025, the Company amended its unsecured revolving credit facility agreement to adjust certain definitions and covenant calculations beginning with the period ending December 31, 2024. The amendment also resulted in a decrease in the total capacity from $900.0 million to $775.0 million.

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 March 31, 2025:
YearUnsecured and Secured DebtJoint Venture Partner Debt
Remaining 2025$573,300 $— 
20261,242,767 — 
2027556,600 — 
2028451,000 — 
2029500,000 — 
Thereafter875,000 66,136 
TOTAL
$4,198,667 $66,136 
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 March 31, 2025 related to our unsecured revolving credit facility and term loans:
Covenant RatioCovenant LevelActual Performance
Total liabilities to total asset value
≤ 65%
46.9%
Unsecured indebtedness to unencumbered asset value
≤ 65%
41.7%
Adjusted EBITDA to fixed charges
≥ 1.4x
1.7x
Secured indebtedness to total asset value
≤ 45%
23.7%
Unencumbered NOI to unsecured interest expense
≥ 1.75x
2.0x

The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of March 31, 2025:
Covenant Ratio(1)
Covenant LevelActual Performance
Debt to total assets
≤ 60%
45.9%
Total unencumbered assets to unsecured debt
 ≥ 150%
247.2%
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
1.7x
Secured debt to total assets
≤ 45%
23.1%
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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 March 31, 2025.

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 and certain of its subsidiaries guarantee the operating partnership’s unsecured debt. The likelihood of loss relating to this guarantee is remote as of March 31, 2025.

Interest Expense

The following table represents a reconciliation from gross interest expense to interest expense on the Consolidated Statements of Operations:
Three Months Ended March 31,
20252024
Gross interest expense(1)
$49,127 $50,656 
Capitalized interest(10,080)(8,482)
Non-cash interest expense(2)
4,458 1,915 
INTEREST EXPENSE
$43,505 $44,089 
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1.Includes interest on the Company’s debt and hedging activities.
2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.