Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 14

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 14
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 and amortization, impairments, gains/losses on sales of real estate, interest expense, interest income, 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, which includes all of the properties owned and included in our stabilized portfolio as of April 1, 2024 and still owned and included in the stabilized portfolio as of June 30, 2025; 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

48

The following table reconciles net loss to NOI:

Three Months Ended June 30,Dollar ChangePercent Change20252024Net loss$(87,760)$(47,557)$(40,203)84.5 %Adjustments:Loss from unconsolidated real estate entities205 2,481 (2,276)(91.7)Fee income(1,476)(1,371)(105)7.7 Interest expense48,137 44,159 3,978 9.0 Interest income(2,123)(579)(1,544)266.7 Management services reimbursement income—unconsolidated real estate entities(1,123)(1,042)(81)7.8 Management services expense—unconsolidated real estate entities1,123 1,042 81 7.8 Transaction-related expenses451 (113)564 (499.1)Unrealized (gain) loss on non-real estate investments(212)1,045 (1,257)(120.3)Loss on sale of real estate, net16 — 16 — Loss on extinguishment of debt1,637 — 1,