Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 120

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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 primarily due to:

•a $14.5 million decrease in rental revenues driven by lease terminations at our 1455 Market, Concourse and Met Park North properties; partially offset by

•a $2.0 million increase in service and other revenues due to a lease termination fee received at our 6040 Sunset property.

•a decrease in studio NOI of $2.7 million primarily due to lower production activity at Sunset Gower Studios.

•a $7.8 million decrease in non-same-store NOI driven by:

•a decrease in office NOI of $4.0 million resulting from the sales of our 3176 Porter property in 2024 and our Foothill Research, Maxwell and 625 Second properties in 2025.

•a decrease in studio NOI of $3.7 million primarily due to:

•a $3.1 million decrease in total studio revenues due to lower stage and production activity at Quixote; and

•a $0.6 million increase in studio operating expenses primarily due to 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.

51

Other (Expenses) Income 

Loss from unconsolidated real estate entities

We recorded a $0.2 million loss from unconsolidated real estate entities for the three months ended June 30, 2025 compared to a loss of $2.5 million for the three 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 $1.5 million for the three months ended June 30, 2025 compared to $1.4 million for the three 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:

Three Months Ended June 30,20252024Dollar ChangePercent ChangeGross interest expense(1)$53,137 $53,077 $60 0.1 %Capitalized interest(10,272)(10,912)640 (5.9)Non-cash interest expense(2)5,