Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 121

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 121
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272 1,994 3,278 164.4 TOTAL$48,137 $44,159 $3,978 9.0 %

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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.

Gross interest expense remained relatively flat, at $53.1 million for the three months ended June 30, 2025 compared to $53.1 million for the three months ended June 30, 2024. The slight increase during the three months ended June 30, 2025 was primarily related to the interest expense related to the Office Portfolio CMBS loan, which was secured during the first quarter of 2025. The increase was offset by repayment of the Series B, C and D notes during the three months ended June 30, 2025, as well as lower reference rates on our floating rate debt. 

Capitalized interest decreased by $0.6 million or 5.9%, to $10.3 million for the three months ended June 30, 2025 compared to $10.9 million for the three months ended June 30, 2024 primarily due to the completion of the Sunset Glenoaks Studios development during the three months ended June 30, 2025. The decrease was partially offset by development activity at Washington 1000, Sunset Waltham Cross Studios, Sunset Las Palmas Studios and Sunset Pier 94 Studios.

Non-cash interest expense increased by $3.3 million, or 164.4%, to $5.3 million for the three months ended June 30, 2025 compared to $2.0 million for the three months ended June 30, 2024. The increase was primarily related to the amortization of cash premiums paid to obtain new interest rate caps during the three months ended June 30, 2025.

Interest income

Interest income increased by $1.5 million, or 266.7%, to $2.1 million for the three months ended June 30, 2025 compared to $0.6 million for the three months ended June 30, 2024. The increase was primarily driven by an increase in cash deposits in interest-bearing accounts and interest income earned on employee retention credit tax refunds received in the second quarter of 2025.

Transaction-related expenses

Transaction-related expenses increased by $