Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 19

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 19
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 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 $0.6 million, or 499.1%, to $0.5 million of expense for the three months ended June 30, 2025 compared to $0.1 million of income for the three months ended June 30, 2024. The increase was primarily related to legal expenses incurred in connection with early lease terminations at Quixote during the three months ended June 30, 2025.

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Unrealized gain (loss) on non-real estate investments

We recognized an unrealized gain on non-real estate investments of $0.2 million for the three months ended June 30, 2025 compared to an unrealized loss of $1.0 million for the three months ended June 30, 2024, which were due to the observable changes in the fair value of the investments.

Loss on sale of real estate, net

During the three months ended June 30, 2025, we recognized a net loss on sale of $16 thousand attributable to the sale of our 625 Second property. No gain or loss on sale was recognized during the three months ended June 30, 2024.

Loss on extinguishment of debt

During the three months ended June 30, 2025, we recognized a loss on extinguishment of debt of $1.6 million related to the early repayment of the Series B, C and D notes. No gain or loss on extinguishment of debt was recognized during the three months ended