Company: HPP
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001482512-25-000043
Chunk: 18

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 18
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 studio NOI of $7.8 million driven by 

•a $3.4 million decrease in total studio revenues due to lower stage and production activity at Quixote during the three months ended March 31, 2025 as compared to the prior period; and

•a $4.5 million increase in studio operating expenses primarily due to a one-time lease termination fee of $5.9 million associated with Quixote cost-cutting initiatives, which are expected to result in $14.2 million of annualized expense savings. The increase was further driven by operating expenses incurred at Sunset Glenoaks Studios, which was an unconsolidated property during the three months ended March 31, 2024 and a consolidated property during the three months ended March 31, 2025.

•a decrease in office NOI of $3.0 million primarily resulting from 2024 lease terminations at our 625 Second property and the sales of our 3176 Porter property in 2024 and Foothill Research and Maxwell properties in 2025.

•a $7.9 million decrease in same-store NOI driven by 

•a decrease in office NOI of $6.2 million primarily due to:

•a $5.0 million decrease in total office revenues mainly driven by lease expirations at our Met Park North, Concourse and 901 Market properties in 2024; and

•a $1.2 million increase in operating expenses predominantly due to higher tax, utilities and insurance expenses at several properties in 2025.

•a decrease in studio NOI of $1.7 million primarily due to lower production activity at Sunset Gower Studios, partially offset by higher production activity at Sunset Las Palmas Studios during the three months ended March 31, 2025 as compared to the prior period.

49

Other Income (Expenses) 

Loss from unconsolidated real estate entities

We recorded a $1.3 million loss from unconsolidated real estate entities for the three months ended March 31, 2025 compared to a loss of $0.7 million for the three months ended March 31, 2024. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting.

Fee income

We recognized fee income of $1.4 million for the three months ended March 31, 2025 compared to $1.1 million for the three months ended March 31, 2024. Fee income