Company: HPP
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001482512-25-000126
Chunk: 20

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 20
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 June 30, 2024.

Other (expense) income

During the three months ended June 30, 2025, we recognized other expense of $0.1 million. During the three months ended June 30, 2024 we recognized other income of $1.3 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 a provision of $0.5 million for the three months ended June 30, 2025 compared to $0.5 million for the three months ended June 30, 2024.

General and administrative expenses

General and administrative expenses increased by $7.1 million, or 34.2%, to $27.8 million for the three months ended June 30, 2025 compared to $20.7 million for the three 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 three 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 $8.0 million, or 9.2%, to $94.8 million for the three months ended June 30, 2025 compared to $86.8 million for the three months ended June 30, 2024. The increase was primarily related to the accelerated depreciation of tenant improvements related to early lease terminations at our 6040 Sunset and Quixote properties and disposals of transportation assets at Quixote during the three months ended June 30, 2025. The increase was partially offset by the sales of our 3176 Porter property in 2024 and our Foothill Research, Maxwell and 625 Second properties in 2025.

Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024

Net Loss

Net loss increased $67.1 million, or 66.5%, to $168.0 million for the six months ended June 30, 2025 compared to $100.9 million for the six months ended June 30, 2024. The reasons for the change are discussed below with respect to the decrease in net operating income for the