Company: HPP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001482512-25-000150
Chunk: 116

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, interest income, transaction-related expenses and other non-operating items. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

Management further analyzes NOI by evaluating the performance from the following groups:

•Same-store, which includes all of the properties owned and included in our stabilized portfolio as of July 1, 2024 and still owned and included in the stabilized portfolio as of September 30, 2025; and

•Non-same-store, which includes:

•Stabilized non-same-store properties

•Lease-up properties

•Repositioning properties 

49

•Development properties

•Redevelopment properties

•Held for sale properties

•Operating results from studio service-related businesses

The following table reconciles net loss to NOI:

Three Months Ended September 30,Dollar ChangePercent Change20252024Net loss$(144,086)$(107,013)$(37,073)34.6 %Adjustments:Loss from unconsolidated real estate entities744 3,219 (2,475)(76.9)Fee income(1,082)(1,437)355 (24.7)Interest expense41,726 45,005 (3,279)(7.3)Interest income(2,212)(542)(1,670)308.1 Management services reimbursement income—unconsolidated real estate entities(1,084)(989)(95)9.6 Management services expense—unconsolidated real estate entities1,084 989 95 9.6 Transaction-related expenses139 269 (130)(48.3)Unrealized loss on non-real estate investments2,098 1,081 1,017 94.1 Impairment loss— 36,543 (36,543)(100.0)Loss on deconsolid