Company: HPP
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0001482512-25-000029
Chunk: 208

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7
Chunk 208
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 (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, transaction-related expenses and other non-operating items. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

Management further analyzes NOI by evaluating the performance from the following groups:

•Same-store properties, which include all of the properties owned and included in our stabilized portfolio as of January 1, 2023 and still owned and included in the stabilized portfolio as of December 31, 2024; and

•Non-same-store, which includes:

•Stabilized non-same store properties

•Lease-up properties

•Repositioning properties

•Development properties

•Redevelopment properties

•Held for sale properties

•Operating results from studio service-related businesses

49

The following table reconciles net loss to NOI (in thousands, except percentage change):Year Ended December 31,20242023Dollar ChangePercentage ChangeNET LOSS$(381,406)$(170,700)$(210,706)123.4 %Adjustments:Loss from unconsolidated real estate entities7,308 3,902 3,406 87.3 Fee income(5,269)(6,181)912 (14.8)Interest expense177,393 214,415 (37,022)(17.3)Interest income(2,467)(2,182)(285)13.1 Management services reimbursement income—unconsolidated real estate entities(4,119)(4,125)6 (0.1)Management services expense—unconsolidated real estate entities4,119 4,125 (6)(0.1)Transaction-related expenses2,499 (1,150)3,649 (317.3)Unrealized loss on non-real estate investment3,958 3,120 838 26.9 Gain on extinguishment of debt—