Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 128

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 128
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148.9 TOTAL$91,642 $88,248 $3,394 3.8 %

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1.Includes interest on the Company’s debt and hedging activities.

2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.

Gross interest expense decreased by $1.5 million, or 1.4%, to $102.3 million for the six months ended June 30, 2025 compared to $103.7 million for the six months ended June 30, 2024. The decrease was driven by the repayment of the Series B, C and D notes and lower reference rates on our floating rate debt during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The decrease was partially offset by interest expense related to the Office Portfolio CMBS loan, which was obtained during the first quarter of 2025, as well interest expense on the Sunset Glenoaks Studios loan, which became a consolidated entity during the second quarter of 2025.

Capitalized interest increased by $1.0 million, or 4.9%, to $20.4 million for the six months ended June 30, 2025 compared to $19.4 million for the six months ended June 30, 2024. The increase was primarily driven by development activity at Washington 1000 and Sunset Las Palmas Studios partially offset by the completion of the Sunset Glenoaks Studios development.

Non-cash interest expense increased by $5.8 million, or 148.9%, to $9.7 million for the six months ended June 30, 2025 compared to $3.9 million for the six months ended June 30, 2024. The increase was primarily related to the amortization of cash premiums paid to obtain new interest rate caps during the six months ended June 30, 2025.

Interest income

Interest income increased by $1.1 million, or 78.5%, to $2.6 million for the six months ended June 30, 2025 compared to $1.4 million for the six months ended June 30, 2024. The increase was primarily driven by an increase in cash deposits in interest-bearing accounts and interest income earned on employee retention credit tax refunds received in the second quarter of 2025.

Transaction-related expenses

Transaction-related expenses