Dropbox surrenders 165,244 sq ft of SF HQ space, pays $79M termination fees; FCF guidance to be updated

DROPBOX, INC.

Lease amendment surrenders 165,244 sq ft in three tranches through Q1 2025; total termination payments of $79M.
Avoids future rent and CAM payments of $137M (rent) plus ~$90M (CAM) over remaining 10-year lease term.
$28.1M termination payment in Q4 2023 not factored into prior FCF guidance of $820-$840M; updated guidance on Nov 2, 2023.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

DROPBOX, INC. amended the Amendment with KRE Exchange Owner LLC valued at $79.0 million in termination payments (effective 2023-10-17).

Action: amendment
Agreement: lease
Counterparty: KRE Exchange Owner LLC
Value: $79.0 million in termination payments
Effective: 2023-10-17

Exact text from the filing

On October 17, 2023, Dropbox Inc. (the “Company”) entered into a lease amendment (the “Amendment”) to its Office Lease, dated October 6, 2017, as subsequently amended, with KRE Exchange Owner LLC (the “landlord”) for its corporate headquarters in San Francisco, California, whereby the Company will surrender to the landlord 165,244 square feet of office space and pay an aggregate of $79.0 million in termination payments.

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283 material agreements filed in the last 30 days. Browse all material agreements →

DROPBOX, INC. filing history →

Source: SEC EDGAR

accession 0001467623-23-000044

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