Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 130

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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4.

General and administrative expenses

General and administrative expenses increased by $5.8 million, or 14.5%, to $46.3 million for the six months ended June 30, 2025 compared to $40.4 million for the six months ended June 30, 2024. The increase was primarily due to the accelerated recognition of $14.3 million of compensation expense related to the cancellation of the 2024 performance unit equity awards by the Company’s top three executive officers during the six months ended June 30, 2025, which was partially offset by the impact of Company-wide cost savings initiatives.

Depreciation and amortization expense

Depreciation and amortization expense increased by $9.2 million, or 5.1%, to $187.8 million for the six months ended June 30, 2025 compared to $178.7 million for the six months ended June 30, 2024. The increase was primarily related to accelerated depreciation of tenant improvements related to early lease terminations at our 6040 Sunset and Quixote properties and disposals of transportation assets at Quixote as well as the accelerated amortization of a non-competition agreement intangible asset at Quixote during the six months ended June 30, 2025. The increase was partially offset by the sales of our 3176 Porter property in 2024 and Foothill Research, Maxwell and 625 Second properties in 2025.

Liquidity and Capital Resources

We have remained capitalized since our initial public offering through public offerings, private placements, joint ventures and continuous offerings under our at-the-market (“ATM”) program. We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, strategic acquisitions, capital expenditures, tenant improvements, leasing costs, dividends and distributions, share repurchases and repayments of outstanding debt financing will include: 

•cash on hand, cash reserves and net cash provided by operations; 

•strategic dispositions of real estate;

•sales of non-real estate investments;

•proceeds from additional equity securities; 

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•our ATM program;

•borrowings under the operating partnership’s unsecured revolving credit facility;

•proceeds from joint venture partners;

•proceeds from the Sunset Pier 94 Studios construction loan (unconsolidated joint venture); and

•proceeds from additional secured, unsecured debt financings or offerings. 

Liquidity Sources