Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 27

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 27
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Loss on extinguishment of debt

During the six months ended June 30, 2025, we recognized a $3.5 million loss on extinguishment of debt related to the early repayment of the loan secured by our Element LA property and the Series B, C and D notes. No gain or loss on extinguishment of debt was recognized during the six months ended June 30, 2024. 

Other (expense) income

During the six months ended June 30, 2025, we recognized other expense of $0.1 million. During the six months ended June 30, 2024, we recognized other income of $1.5 million related to the sale of a non-real estate investment.

Income tax provision

There was no significant change in the income tax provision. We recognized an income tax provision of $0.6 million for the six months ended June 30, 2025 compared to $0.5 million for the six months ended June 30, 2024.

General and administrative expenses

General and administrative expenses increased by $5.8 million, or 14.5%, to $46.3 million for the six months ended June 30, 2025 compared to $40.4 million for the six months ended June 30, 2024. The increase was primarily due to the accelerated recognition of $14.3 million of compensation expense related to the cancellation of the 2024 performance unit equity awards by the Company’s top three executive officers during the six months ended June 30, 2025, which was partially offset by the impact of Company-wide cost savings initiatives.

Depreciation and amortization expense

Depreciation and amortization expense increased by $9.2 million, or 5.1%, to $187.8 million for the six months ended June 30, 2025 compared to $178.7 million for the six months ended June 30, 2024. The increase was primarily related to accelerated depreciation of tenant improvements related to early lease terminations at our 6040 Sunset and Quixote properties and disposals of transportation assets at Quixote as well as the accelerated amortization of a non-competition agreement intangible asset at Quixote during the six months ended June 30, 2025. The increase was partially offset by the sales of our 3176 Porter property in 2024 and Foothill Research, Maxwell and 625 Second properties in 2025