Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 26

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 26
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 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 decreased $1.6 million, or 77.9%, to $0.5 million for the six months ended June 30, 2025 compared to $2.0 million for the six months ended June 30, 2024. The decrease was primarily related to legal expenses incurred in connection with early lease terminations at Quixote during the six months ended June 30, 2025.

57

Unrealized loss on non-real estate investments

We recognized an unrealized loss on our non-real estate investments of $0.2 million for the six months ended June 30, 2025 compared to a loss of $1.9 million for the six months ended June 30, 2024, which were due to the observable changes in the fair value of the investments.

Gain on sale of real estate, net

During the six months ended June 30, 2025, we recognized a net gain of $10.0 million primarily attributable to the sales of our Foothill Research and Maxwell properties. No gain or loss on sale was recognized during the six months ended June 30, 2024.

Impairment loss

During the six months ended June 30, 2025, we recorded an impairment loss of $18.5 million due to a reduction in the estimated holding period for our 625 Second office property. We did not record any impairment charges during the six months ended June 30, 2024