v3.26.1
Debt
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
The following table sets forth information with respect to the Company’s outstanding indebtedness:
June 30, 2026December 31, 2025
Interest Rate(1)
Contractual Maturity Date(2)
UNSECURED AND SECURED DEBT
Unsecured debt
Unsecured revolving credit facility(3)(4)
$— $— 
SOFR + 1.15% to 1.60%
12/31/2029(5)
3.95% Registered senior notes
400,000 400,000 3.95%11/1/2027
4.65% Registered senior notes
500,000 500,000 4.65%4/1/2029
3.25% Registered senior notes
400,000 400,000 3.25%1/15/2030
5.95% Registered senior notes(6)
350,000 350,000 5.95%2/15/2028
Total unsecured debt1,650,000 1,650,000 
Secured debt
Hollywood Media Portfolio CMBS(7)(8)
1,100,000 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 
1918 Eighth CMBS(8)
285,000 285,000 6.16%9/11/2030
Hill7 CMBS(12)
101,000 101,000 3.38%11/6/2028
Office Portfolio CMBS(13)(14)
257,083 262,083 
SOFR + 4.15%
4/9/2030(15)
Total secured debt1,712,850 1,717,850 
Total unsecured and secured debt3,362,850 3,367,850 
Unamortized deferred financing costs/loan discounts(16)
(14,057)(16,392)
TOTAL UNSECURED AND SECURED DEBT, NET$3,348,793 $3,351,458 
JOINT VENTURE PARTNER DEBT(17)
$66,136 $66,136 4.50%10/9/2032(18)
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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 June 30, 2026, which may be different than the interest rates as of December 31, 2025 for the corresponding indebtedness.
2.Maturity dates include the effect of extension options.
3.The annual facility fee rate ranges from 0.15% to 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 June 30, 2026, no such election had been made.
4.The Company has a total capacity of $795.3 million available under its unsecured revolving credit facility, which may be increased 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, subject to the satisfaction of certain conditions and lender commitments.
5.$333.3 million of the revolving commitments have an initial maturity date of December 21, 2025 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company. The first extension option was exercised on December 10, 2025, and the second extension option was exercised on May 12, 2026. $462.0 million of the revolving commitments have an initial maturity date of December 31, 2028 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company.
6.An amount equal to the net proceeds from the 5.95% registered senior notes has been allocated to new or existing eligible green projects.
7.This loan is secured by eight properties: Sunset Gower Studios, Sunset Las Palmas Studios, Sunset Bronson Studios, 6040 Sunset, Harlow, ICON, CUE and EPIC.
8.This loan is interest-only through its term.
9.Subsequent to quarter end, the Company entered into an agreement extending the maturity of the loan for an initial period through September 9, 2026 while it negotiates a potential longer-term extension.
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 4.95% through the use of an interest rate cap. The floating interest rate on $351.2 million of principal is effectively fixed at 3.53% 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 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.
13.This loan is secured by five office properties: 11601 Wilshire, 5th & Bell, 450 Alaskan, 1740 Technology and 275 Brannan.
14.The loan requires monthly payments of principal and interest. The floating interest rate on $250.0 million of principal has been effectively fixed at 3.41% through the use of an interest rate swap. The floating interest rate on $6.3 million of principal has been capped at 3.35% through the use of an interest rate cap.
15.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.
16.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.
17.This amount represents debt owed by the Ferry Building joint venture to PIMCO Prime Real Estate (“PIMCO”, formerly known as Allianz U.S. Private REIT LP), the Company’s partner in the joint venture.
18.Includes the option to extend the initial maturity date of October 9, 2028 twice for additional two-year terms each, permitting certain financial covenants are met.

Current Year Activity

During the six months ended June 30, 2026, there were no repayments or borrowings on the unsecured revolving credit facility. The Company generally uses the unsecured revolving credit facility to finance the acquisitions of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.

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 future minimum principal payments due on the Company’s debt (after the impact of extension options, if applicable) as of June 30, 2026:
YearUnsecured and Secured DebtJoint Venture Partner Debt
Remaining 2026$1,079,767 $— 
2027410,000 — 
2028461,000 — 
2029510,000 — 
2030902,083 — 
Thereafter— 66,136 
TOTAL
$3,362,850 $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 June 30, 2026 related to our unsecured revolving credit facility and term loans:
Covenant RatioCovenant LevelActual Performance
Total liabilities to total asset value
≤ 60%
44.0%
Unsecured indebtedness to unencumbered asset value
≤ 60%
37.0%
Adjusted EBITDA to fixed charges
≥ 1.5x
1.6x
Secured indebtedness to total asset value
≤ 45%
23.4%
Unencumbered NOI to unsecured interest expense
≥ 1.75x
2.3x
Minimum liquidity coverage
> $125MM
Yes
The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of June 30, 2026:
Covenant Ratio(1)
Covenant LevelActual Performance
Debt to total assets
≤ 60%
39.1%
Total unencumbered assets to unsecured debt
 ≥ 150%
316.8%
Consolidated income available for debt service to annual debt service charge
≥ 1.5x
2.0x
Secured debt to total assets
≤ 40%
20.6%
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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 June 30, 2026.

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 June 30, 2026.

Interest Expense

The following table represents a reconciliation from gross interest expense to interest expense on the Consolidated Statements of Operations:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
Gross interest expense(1)
$42,399 $53,137 $84,584 $102,264 
Capitalized interest(5,454)(10,272)(11,137)(20,352)
Non-cash interest expense(2)
1,531 5,272 3,023 9,730 
INTEREST EXPENSE
$38,476 $48,137 $76,470 $91,642 
_________________
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.