Company: HPP
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001482512-25-000150
Chunk: 35

Company: Hudson Pacific Properties, Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 35
---
 depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

63

The following table presents a reconciliation of net loss to FFO (in thousands): 

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024Net loss$(144,086)$(107,013)$(312,124)$(207,925)Adjustments:Depreciation and amortization—consolidated94,085 86,672 281,921 265,324 Depreciation and amortization—non-real estate assets(8,919)(8,031)(27,353)(24,223)Depreciation and amortization—HPP’s share from unconsolidated real estate entities1,250 1,231 3,408 4,388 Gain on sale of real estate, net— — (10,007)— Loss on deconsolidation of real estate entity77,907 — 77,907 — Impairment loss—real estate assets— 36,543 18,476 36,543 Unrealized loss on non-real estate investments2,098 1,081 2,335 3,024 FFO attributable to non-controlling interests(2,611)1,508 (12,616)(9,601)FFO attributable to preferred shares and units(5,100)(5,200)(15,461)(15,600)FFO TO COMMON STOCK/UNIT HOLDERS$14,624 $6,791 $6,486 $51,930 

64

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about our market risk is disclosed in Part II, Item 7A, of our 2024 Annual Report on Form 10-K and is incorporated