Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 89

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 89
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 All Equity REITs index over a three-year performance period. Certain of the awards granted under the PSU Plan are subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred.For 2024, the Compensation Committee adopted an annual equity award program for its top three executive officers consisting of a grant of time-based operating partnership performance units and a grant of market-based operating partnership performance units. The time-based awards were to vest in equal annual installments over the applicable service vesting period, which was five years. The market-based awards were to vest upon satisfaction of both the performance and service-based requirements. In June 2025, the top three executive officers agreed to a cancellation of their 2024 performance unit equity awards, which resulted in the accelerated recognition of the remaining unamortized compensation expense of $14.3 million during the three and six months ended June 30, 2025, which is recorded in general and administrative on the Consolidated Statements of Operations.The Compensation Committee did not adopt a performance-based equity award program for 2025.

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Table of ContentsHudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.Notes to Unaudited Consolidated Financial Statements(Unaudited, tabular amounts in thousands, except square footage, share and unit data)

The following table presents the classification and amount recognized for share/unit-based compensation related to the Company’s awards: Three Months Ended June 30,Six Months Ended June 30,2025202420252024Expensed share/unit-based compensation(1)(2)$17,889 $6,918 $23,029 $13,485 Capitalized share/unit-based compensation(3)449 484 862 1,089 TOTAL SHARE/UNIT-BASED COMPENSATION(4)$18,338 $7,402 $23,891 $14,574 _________________1.Amounts are recorded in general and administrative expenses, office operating expenses and studio operating expenses on the Consolidated Statements of Operations.2.Amounts expensed during the three and six months ended June 30, 2025 include $14.3 million of accelerated expense recognized in connection with the cancellation of the 2024 performance unit equity awards.3.Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets.

4.Amounts are recorded in accounts payable, accrued liabilities and other, additional paid-in capital and non-controlling interest—units