Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 127

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 127
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 revenues due to lease termination fees received at our 6040 Sunset, Shorebreeze and Rincon Center properties.

•a decrease in studio NOI of $4.4 million primarily due to lower production activity at Sunset Gower Studios, partially offset by higher production activity at Sunset Las Palmas Studios.

•a $19.4 million decrease in non-same-store NOI driven by:

•a decrease in studio NOI of $11.6 million primarily due to:

•a $6.8 million decrease in service and other revenues due to lower stage and production activity at Quixote; and

•a $5.1 million increase in studio operating expenses primarily due to one-time lease termination fees of $6.5 million associated with Quixote cost-cutting initiatives and operating expenses incurred at Sunset Glenoaks Studios, which was completed and placed in service during the second quarter of 2024, partially offset by lower stage and transportation utilization at Quixote.

•a decrease in office NOI of $7.8 million resulting from the sales of our 3176 Porter property in 2024 and our Foothill Research, 625 Second and Maxwell properties in 2025.

56

Other (Expenses) Income

Loss from unconsolidated real estate entities

We recorded a $1.5 million loss from unconsolidated real estate entities for the six months ended June 30, 2025 compared to a loss of $3.2 million for the six months ended June 30, 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

There was no significant change in fee income. We recognized fee income of $2.8 million for the six months ended June 30, 2025 compared to $2.5 million for the six months ended June 30, 2024. Fee income represents the management fee income earned from our unconsolidated real estate entities. 

Interest expense

The following table presents a reconciliation from gross interest expense to the interest expense line item on the Consolidated Statements of Operations:Six Months Ended June 30,20252024Dollar ChangePercent ChangeGross interest expense(1)$102,264 $103,733 $(1,469)(1.4)%Capitalized interest(20,352)(19,394)(958)4.9 Non-cash interest expense(2)9,730 3,909 5,821