Hudson Pacific Properties, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
HPP$8.49-3.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001482512-26-000069
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001482512-26-000085
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 243 previous paragraphs and 255 current paragraphs.
171 unchanged; 62 reworded; 20 added; 8 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (20)
Current report
Skyport Plaza classified as held-for-sale as of September 30, 2026 and sold on October 15, 2026.
Current report
Company 3 Method Inc expirations: (i) 59,646 square feet at Harlow on October 31, 2032 and (ii) 70,285 square feet at Harlow on March 31, 2033.
Current report
Regus expirations: (i) 45,120 square feet at Gateway on September 30, 2027, (ii) 21,296 square feet at 450 Alaskan on October 31, 2030 and (iii) 9,739 square feet at Palo Alto Square on April 30, 2031. Subsequent to the quarter, executed a renewal with Regus at Gateway for 45,120 square feet through 2033.
Current report
Property Acquisitions
Current report
Property Dispositions
Current report
During the nine months ended September 30, 2026, we sold our 2001 Gateway Place and 875/899 Howard properties for $25.0 million and $65.5 million, respectively. See Part I, Item 1, “Note 3 to the Consolidated Financial Statements—Investment in Real Estate,” for details. The net proceeds from these sales were used to finance the subsequent repurchase of the senior notes. See Part I, Item 1, “Note 22 to the Consolidated Financial Statements—Subsequent Events,” for details.
Current report
Includes 371,066 square feet related to Skyport Plaza. This property was sold October 15, 2026.
Current report
During the nine months ended September 30, 2026, we amended our Hollywood Media Portfolio loan to extend the maturity date to November 9, 2027. The loan continues to bear interest at SOFR + 1.10% and no principal paydown was required in connection with the amendment. Pursuant to the amendment, $20.0 million of partnership funds were reallocated to a leasing reserve and excess cash flow from the Hollywood Media Portfolio will be swept to the reserve through maturity. In connection with the amendment, we entered into an interest rate swap to effectively fix SOFR at 3.50% on $1.1 billion of principal through the extended maturity.
Current report
During the three months ended September 30, 2026, we recognized a net loss on sale of real estate of $20.3 million attributable to the sales of our 2001 Gateway Place and 875/899 Howard office properties. We did not record a net loss on sale of real estate during the three months ended September 30, 2025.
Current report
Loss on deconsolidation of real estate entity
Current report
During the three months ended September 30, 2025, we recognized a $77.9 million loss related to the deconsolidation of our Sunset Glenoaks Studios property. The loss was calculated as the difference between the 1) sum of the fair value of the Company’s related noncontrolling investment in the joint venture and the carrying amount of the noncontrolling interest in the joint venture at the date of the deconsolidation; and 2) the carrying amount of the joint venture’s net assets at the date of the deconsolidation. No gain or loss on deconsolidation was recognized during the three months ended September 30, 2026.
Current report
Gain on lease terminations, sale of assets and other
Current report
Gain on lease terminations, sale of assets and other increased by $2.6 million, or 424.6%, to $3.2 million for the three months ended September 30, 2026 compared to $0.6 million for the three months ended September 30, 2025. The increase was primarily related to the termination of certain leases in connection with the phased wind-down of leased sound stage facilities and Atlanta-area operations at Quixote, as well as a $0.6 million gain on the sale of equipment at Quixote during the third quarter of 2026.
Current report
General and administrative expenses decreased by $1.4 million, or 10.0%, to $12.3 million for the three months ended September 30, 2026 compared to $13.7 million for the three months ended September 30, 2025. The decrease was primarily due to continued cost-saving initiatives.
Current report
Comparison of the Nine Months Ended September 30, 2026 to the Nine Months Ended September 30, 2025
Current report
Loss on deconsolidation of real estate entity
Current report
During the nine months ended September 30, 2025, we recognized a $77.9 million loss related to the deconsolidation of our Sunset Glenoaks Studios property. The loss was calculated as the difference between 1) the sum of the fair value of the Company’s retained noncontrolling investment in the joint venture and the carrying amount of the noncontrolling interest in the joint venture at the date of the deconsolidation; and 2) the carrying amount of the joint venture’s net asset at the date of the deconsolidation. No gain or loss on deconsolidation was recognized during the nine months ended September 30, 2026.
Current report
Loss (gain) on lease terminations, sale of assets and other
Current report
We may from time to time seek to repurchase our outstanding debt securities in open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors.
Current report
Net cash used in investing activities decreased by $54.6 million, or 85.1%, to $9.5 million for the nine months ended September 30, 2026 compared to $64.1 million for the nine months ended September 30, 2025. The decrease primarily resulted from a $25.6 million decrease in additions to investment in real estate, $15.3 million of proceeds from the sale of non-real estate property, plant and equipment in connection with the phased wind-down of operations at Quixote, $12.4 million of cash disposed upon the deconsolidation of our Sunset Glenoaks Studios property during the nine months ended September 30, 2025 and a $10.1 million decrease in additions to non-real estate property, plant and equipment, partially offset by a $7.4 million decrease in proceeds from sales of real estate.
Removed paragraphs (8)
Previous report
As of June 30, 2026, the Company classified its 2001 Gateway Place office property (part of the Gateway office complex) as held-for-sale.
Previous report
Dell EMC Corporation expirations: (i) 83,549 square feet at 875 Howard on June 30, 2026 and (ii) 46,472 square feet at 505 First on April 30, 2032.
Previous report
PayPal, Inc. has exercised their early termination right at Fourth & Traction for July 2026.
Previous report
Loss on lease terminations and other
Previous report
Comparison of the Six Months Ended June 30, 2026 to the Six Months Ended June 30, 2025
Previous report
Loss on lease terminations and other
Previous report
Loss on lease terminations and other increased by $4.7 million, or 5,497.6%, to $4.8 million for the six months ended June 30, 2026 compared to $0.1 million for the six months ended June 30, 2025. The increase was primarily related to the termination of certain Quixote leases due to the phased wind-down of leased sound stage facilities and Atlanta-area operations at Quixote, partially offset by indemnification income from a third party in connection with the lease terminations.
Previous report
Net cash used in investing activities increased by $66.1 million, or 818.5%, to $74.2 million for the six months ended June 30, 2026, compared to $8.1 million for the six months ended June 30, 2025. The increase primarily resulted from an $88.3 million decrease in proceeds from sales of real estate, partially offset by a $17.6 million decrease in additions to investment in real estate during the six months ended June 30, 2026.
Reworded paragraphs (62)
Previous wording
Through our interest in Hudson Pacific Properties, L.P. (our operating partnership) and its subsidiaries, at June 30, 2026, our portfolio of owned real estate included office properties comprising approximately 14.0 million square feet, studio properties comprising approximately 45 sound stages and 1.7 million square feet, and land properties comprising approximately 3.2 million square feet of undeveloped density rights. Our production services assets primarily consist of our vehicle fleet, following our decision to wind down leased stage, pro-supplies, and ancillary equipment businesses as part of Quixote’s restructuring.
Current wording
Through our interest in Hudson Pacific Properties, L.P. (our operating partnership) and its subsidiaries, at September 30, 2026, our portfolio of owned real estate included office properties comprising approximately 13.4 million square feet, studio properties comprising approximately 45 sound stages and 1.7 million square feet, and land properties comprising approximately 3.3 million square feet of undeveloped density rights. Our production services assets primarily consist of our vehicle fleet, following our decision to wind down leased stage, pro-supplies, and ancillary equipment businesses as part of Quixote’s restructuring.
Previous wording
Annualized base rent (“ABR”) per square foot for office properties iscalculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of June 30, 2026 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of June 30, 2026. For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of June 30, 2026. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options. Where applicable, rental rates converted to USD using the foreign currency exchange rate as of June 30, 2026. Annualized base rent per square foot for studio properties reflects actual base rent for the 12 months ended June 30, 2026, excluding tenant reimbursements. ABR per leased square foot calculated as (i) annual base rent divided by (ii) square footage under lease as of June 30, 2026.
Current wording
Annualized base rent (“ABR”) per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of September 30, 2026 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of September 30, 2026. For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of September 30, 2026. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options. Where applicable, rental rates converted to USD using the foreign currency exchange rate as of September 30, 2026. Annualized base rent per square foot for studio properties reflects actual base rent for the 12 months ended September 30, 2026, excluding tenant reimbursements. ABR per leased square foot calculated as (i) annual base rent divided by (ii) square footage under lease as of September 30, 2026.
Previous wording
Includes 231,784 square feet related to recently completed development Sunset Pier 94 studios and 243,300 square feet related to Sunset Glenoaks Studios.
Current wording
Includes 234,315 square feet related to recently completed development Sunset Pier 94 studios and 243,300 square feet related to Sunset Glenoaks Studios.
Previous wording
Includes entitlement to develop up to 428,623 square feet (508 residential units) at 10900-10950 Washington.
Current wording
Includes entitlement to develop up to 428,623 square feet (508 residential units) at 10900-10950 Washington and 163,823 square feet (136 residential units) at 901 Market (secured subsequent to the quarter).
Previous wording
Weil, Gotshal & Manges, LLP expirations at Towers at Shore Center: (i) 38,420 square feet on August 31, 2026 and (ii) 50,829 square feet on February 28, 2038.
Current wording
Weil, Gotshal & Manges expirations at Towers at Shore Center: (i) 38,420 square feet on October 5, 2026 and (ii) 50,829 square feet on February 28, 2038. Adjusted for the 38,420 square feet that expired on October 5, 2026, Weil, Gotshal & Manges would comprise 0.9% of HPP’s share of annualized base rent, dropping to #14 on the top 15 largest office tenants list.
Previous wording
Redfin Corporation expirations: (i) 2,978 square feet at Gateway on September 30, 2026 and (ii) 112,990 square feet at Hill7 on July 31, 2027.
Current wording
Redfin Corporation expirations: (i) 112,990 square feet at Hill7 on July 31, 2027 and (ii) 2,978 square feet at Gateway on December 31, 2029.
Previous wording
We had no property acquisitions or dispositions during the three and six months ended June 30, 2026.
Current wording
We had no property acquisitions during the nine months ended September 30, 2026.
Previous wording
As of June 30, 2026, the Company classified its 2001 Gateway Place office property in the North San Jose submarket as held for sale. The property was identified as non-strategic to the Company’s portfolio and was subsequently sold on July 1, 2026. See Part I, Item 1, “Note 3 to the Consolidated Financial Statements—Investment in Real Estate,” for more detail.
Current wording
As of September 30, 2026, we classified our Skyport Plaza office property, located in the North San Jose submarket, and a studio facility located in Albuquerque, New Mexico, as held for sale. The properties were identified as non-strategic to our portfolio and were subsequently sold on October 15, 2026. See Part I, Item 1, “Note 3 to the Consolidated Financial Statements—Investment in Real Estate,” for details.
Previous wording
Does not include 29 month-to-month leases.
Current wording
Does not include 32 month-to-month leases.
Previous wording
During the six months ended June 30, 2026, there were no repayments or borrowings on the unsecured revolving credit facility. The Company generally uses the unsecured revolving credit facility to finance the acquisitions of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.
Current wording
During the nine months ended September 30, 2026, there were no repayments or borrowings on the unsecured revolving credit facility. We generally use the unsecured revolving credit facility to finance the acquisitions of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.
Previous wording
Net loss increased $16.9 million, or 19.3%, to $104.7 million for the three months ended June 30, 2026 compared to $87.8 million for the three months ended June 30, 2025. The reasons for the change are discussed below with respect to impairment loss and loss on lease terminations and other for the three months ended June 30, 2026, partially offset by the decrease in general and administrative expenses, depreciation and amortization and interest expense for the same period.
Current wording
Net loss increased $78.1 million, or 54.2%, to $222.2 million for the three months ended September 30, 2026 compared to $144.1 million for the three months ended September 30, 2025. The reasons for the change are discussed below with respect to impairment loss and loss on sale of real estate, net, for the three months ended September 30, 2026, partially offset by the non-recurring loss on deconsolidation of real estate entity recognized during the three months ended September 30, 2025 and decreases in depreciation and amortization expense and studio operating expenses for the three months ended September 30, 2026.
Previous wording
NOI increased $2.7 million, or 3.3%, for the three months ended June 30, 2026 as compared to the three months ended June 30, 2025, primarily resulting from:
Current wording
NOI decreased $0.2 million, or 0.3%, for the three months ended September 30, 2026 as compared to the three months ended September 30, 2025, primarily resulting from:
Previous wording
•a $7.6 million increase in same-store NOI driven by:
Current wording
•a $6.7 million increase in same-store NOI driven by:
Previous wording
•an increase in office NOI of $5.3 million primarily driven by the following 2026 activity: an extension of the City of San Francisco lease at our 1455 Market property, prior period tax refunds received at our Skyport Plaza property and a reduction in operating expenses at our 901 Market property in connection with its repositioning project. The increase was partially offset by lease terminations at our Hill7 property; and
Current wording
•an increase in office NOI of $4.8 million primarily driven by the commencement of the third phase of the City of San Francisco lease at our 1455 Market property in the second quarter of 2026, partially offset by higher operating expenses at our 1455 Market property; and
Previous wording
•an increase in studio NOI of $2.3 million driven by higher production activity at our Sunset Gower Studios and Sunset Las Palmas Studios properties during the second quarter of 2026.
Current wording
•an increase in studio NOI of $1.9 million driven by higher production activity at our Sunset Las Palmas Studios and Sunset Gower Studios properties during the third quarter of 2026.
Previous wording
•offset by a $4.9 million decrease in non-same-store NOI driven by:
Current wording
•offset by a $7.0 million decrease in non-same-store NOI driven by:
Previous wording
•a decrease in office NOI of $6.0 million primarily resulting from the sale of our Element LA property in the fourth quarter of 2025, the commencement of a repositioning project at 6040 Sunset in the first quarter of 2026 and increased operating expenses at our Washington 1000 property after it was placed in service during the first quarter of 2026; partially offset by
Current wording
•a decrease in office NOI of $10.3 million primarily resulting from the sale of our Element LA property in the fourth quarter of 2025, the expiration of the PayPal lease at our Fourth & Traction property in July 2026, the sale of our 875/899 Howard property in the third quarter of 2026 and increased operating expenses at our Washington 1000 property after it was placed in service in the first quarter of 2026; partially offset by
Previous wording
•an increase in studio NOI of $1.1 million due to cost-savings initiatives at Quixote and the deconsolidation of our Sunset Glenoaks Studios property during the third quarter of 2025.
Current wording
•an increase in studio NOI of $3.3 million due to cost-savings initiatives at Quixote and the deconsolidation of our Sunset Glenoaks Studios property during the third quarter of 2025.
Previous wording
We recorded a $1.0 million loss from unconsolidated real estate entities for the three months ended June 30, 2026 compared to a loss of $0.2 million for the three months ended June 30, 2025. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting, as well as our Sunset Pier 94 Studios property becoming operational during the first quarter of 2026.
Current wording
We recorded a $0.5 million loss from unconsolidated real estate entities for the three months ended September 30, 2026 compared to a loss of $0.7 million for the three months ended September 30, 2025. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting, as well as our Sunset Pier 94 Studios property becoming operational during the first quarter of 2026.
Previous wording
We recognized fee income of $1.0 million for the three months ended June 30, 2026 compared to $1.5 million for the three months ended June 30, 2025. The change was primarily due to a reduction in development fees associated with our Sunset Pier 94 Studios development project, which was substantially completed during the first quarter of 2026.
Current wording
We recognized fee income of $1.0 million for the three months ended September 30, 2026 compared to $1.1 million for the three months ended September 30, 2025. The change was primarily due to a reduction in development fees associated with our Sunset Pier 94 Studios development project, which was substantially completed during the first quarter of 2026.
Previous wording
Gross interest expense decreased by $10.7 million, or 20.2%, to $42.4 million for the three months ended June 30, 2026 compared to $53.1 million for the three months ended June 30, 2025. The decrease was primarily due to a lower outstanding balance on the unsecured line of credit and lower reference rates on our floating rate debt during the second quarter of 2026, the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025 and the 2025 repayments of the Element LA loan and Series B, C and D notes.
Current wording
Gross interest expense decreased by $4.4 million, or 9.0%, to $44.4 million for the three months ended September 30, 2026 compared to $48.7 million for the three months ended September 30, 2025. The decrease was primarily due to the partial repayment of our CMBS loan in the fourth quarter of 2025, the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025, as well as lower interest rates on our floating rate debt in 2026.
Previous wording
Capitalized interest decreased by $9.2 million, or 45.3%, to $11.1 million for the six months ended June 30, 2026 compared to $20.4 million for the six months ended June 30, 2025 primarily due to the completion of our Washington 1000 and Sunset Pier 94 Studios development projects and the cessation of interest capitalization at our Sunset Glenoaks Studios property in the second quarter of 2025. The decrease was partially offset by an increase in construction activity at our 6040 Sunset property.
Current wording
Capitalized interest decreased by $3.8 million, or 39.9%, to $5.8 million for the three months ended September 30, 2026 compared to $9.6 million for the three months ended September 30, 2025 primarily due to the cessation of interest capitalized at our Washington 1000 property after it was placed in service during the first quarter of 2026 and the completion of our Sunset Pier 94 Studios development project during the first quarter of 2026. The decrease was partially offset by an increase in construction activity at our 6040 Sunset property.
Previous wording
Non-cash interest expense decreased by $3.7 million, or 71.0%, to $1.5 million for the three months ended June 30, 2026 compared to $5.3 million for the three months ended June 30, 2025. The decrease was primarily related to changes in the fair value of our derivative instruments not accounted for as cash flow hedges.
Current wording
Non-cash interest expense decreased by $0.3 million, or 9.8%, to $2.3 million for the three months ended September 30, 2026 compared to $2.6 million for the three months ended September 30, 2025. The decrease was primarily related to lower amortization of deferred financing costs following the partial repayment of our CMBS loan in the fourth quarter of 2025 and the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025, partially offset by changes in the fair value of our derivative instruments not accounted for as cash flow hedges.
Previous wording
Interest income decreased by $1.6 million, or 73.3%, to $0.6 million for the three months ended June 30, 2026 compared to $2.1 million for the three months ended June 30, 2025. The change was driven by a decrease in cash deposits in interest-bearing accounts.
Current wording
Interest income decreased by $1.5 million, or 67.8%, to $0.7 million for the three months ended September 30, 2026 compared to $2.2 million for the three months ended September 30, 2025. The change was driven by lower cash balances held in interest-bearing accounts in 2026 as well as interest income received in 2025 on employee retention credit tax refunds.
Previous wording
Transaction-related expenses increased by $0.2 million, or 51.2%, to $0.7 million for the three months ended June 30, 2026 compared to $0.5 million for the three months ended June 30, 2025. The increase was primarily related to legal expenses incurred in connection with the phased wind-down of leased sound stage facilities and Atlanta-area operations at Quixote.
Current wording
Transaction-related expenses increased by $0.2 million, or 88.5%, to $0.3 million for the three months ended September 30, 2026 compared to $0.1 million for the three months ended September 30, 2025. The increase was primarily related to costs incurred in connection with the termination of certain leases as part of the phased wind-down of leased sound stage facilities and Atlanta-area operations at Quixote.
Previous wording
We recognized an unrealized loss on non-real estate investments of $0.8 million for the three months ended June 30, 2026 compared to an unrealized gain of $0.2 million for the three months ended June 30, 2025, which were due to the observable changes in the fair value of the investments.
Current wording
We recognized an unrealized loss on non-real estate investments of $9.2 million for the three months ended September 30, 2026 compared to an unrealized loss of $2.1 million for the three months ended September 30, 2025, which were due to the observable changes in the fair value of the investments.
Previous wording
During the three months ended June 30, 2026, we recorded an impairment loss of $50.4 million primarily related to the phased wind-down of leased sound stage facilities at Quixote and our 2001 Gateway Place office property, which was held for sale as of June 30, 2026 and subsequently sold on July 1, 2026. We did not record any impairment charges during the three months ended June 30, 2025.
Current wording
During the three months ended September 30, 2026, we recorded an impairment loss of $147.8 million related to our Hill7 and Skyport Plaza office properties. The impairments resulted from shortened expected holding periods for both properties and reduced their carrying values to their estimated fair value, less estimated costs to sell for Skyport Plaza. Skyport Plaza was classified as held for sale as of September 30, 2026 and subsequently sold on October 15, 2026. We did not record any impairment charges during the three months ended September 30, 2025.
Previous wording
During the three months ended June 30, 2025, we recognized a loss on extinguishment of debt of $1.6 million related to the early repayment of the Series B, C and D notes. No gain or loss on extinguishment of debt was recognized during the three months ended June 30, 2026.
Current wording
During the three months ended September 30, 2025, we recognized a loss on extinguishment of debt of $0.2 million related to the refinancing of the loan secured by our 1918 Eighth property. No gain or loss on extinguishment of debt was recognized during the three months ended September 30, 2026.
Previous wording
Depreciation and amortization expense decreased by $12.6 million, or 13.3%, to $82.1 million for the three months ended June 30, 2026 compared to $94.8 million for the three months ended June 30, 2025. The decrease was primarily driven by the Quixote impairment charge recorded during the fourth quarter of 2025, which resulted in a lower depreciable basis for our non-real estate property, plant and equipment, and the accelerated depreciation of tenant improvements related to an early lease termination at our 6040 Sunset property in 2025 with no comparable activity in 2026. The decrease was partially offset by the commencement of depreciation and amortization at our Washington 1000 property, which was placed in service in 2026.
Current wording
Depreciation and amortization expense decreased by $16.2 million, or 17.2%, to $77.9 million for the three months ended September 30, 2026 compared to $94.1 million for the three months ended September 30, 2025. The decrease was primarily driven by accelerated depreciation recorded during the third quarter of 2025 related to the demolition of an unused building structure at our Sunset Las Palmas Studios property for its conversion to a parking lot and the Quixote impairment charges recorded during the fourth quarter of 2025 and the second quarter of 2026, which resulted in a lower depreciable basis for our non-real estate property, plant and equipment and the sale of our Element LA property in the fourth quarter of 2025.
Previous wording
Net loss decreased $12.4 million, or 7.4%, to $155.6 million for the six months ended June 30, 2026 compared to $168.0 million for the six months ended June 30, 2025. The reasons for the change are discussed below with respect to the decrease in general and administrative expenses, depreciation and amortization expense and interest expense during the six months ended June 30, 2026, partially offset by increases in impairment loss and loss on lease terminations and other and a non-recurring gain on sale of real estate recognized during the six months ended June 30, 2025.
Current wording
Net loss increased $65.7 million, or 21.0%, to $377.8 million for the nine months ended September 30, 2026 compared to $312.1 million for the nine months ended September 30, 2025. The reasons for the change are discussed below with respect to the increases in impairment loss, loss on sale of real estate, net, unrealized loss on non-real estate investments and loss on lease terminations, sale of assets and other during the nine months ended September 30, 2026, partially offset by decreases in depreciation and amortization expense, general and administrative expenses and interest expense and the non-recurring loss on deconsolidation of real estate entity recognized during the nine months ended September 30, 2025.
Previous wording
NOI decreased $2.2 million, or 1.3%, for the six months ended June 30, 2026 as compared to the six months ended June 30, 2025, primarily resulting from:
Current wording
NOI decreased $2.4 million, or 1.0%, for the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025, primarily resulting from:
Previous wording
•a $5.2 million decrease in non-same-store NOI driven by:
Current wording
•a $6.7 million decrease in non-same-store NOI driven by:
Previous wording
•a decrease in office NOI of $14.0 million primarily resulting from the sales of our Element LA, Foothill Research Center and 625 Second properties in 2025, increased operating expenses at our Washington 1000 property after it was placed in service during the first quarter of 2026 and the commencement of a repositioning project at our 6040 Sunset property in the first quarter of 2026; partially offset by
Current wording
•a decrease in office NOI of $18.9 million primarily resulting from the sales of our Element LA and Foothill Research Center properties in 2025, the sale of our 875/899 Howard office property in the third quarter of 2026, increased operating expenses at our Washington 1000 property after it was placed in service during the first quarter of 2026 and the commencement of a repositioning project at our 6040 Sunset property in the first quarter of 2026, partially offset by prior period real estate tax refunds received at our Skyport Plaza property in 2026; partially offset by
Previous wording
•an increase in studio NOI of $8.9 million primarily related to a significant reduction in operating expenses at Quixote due to cost-savings initiatives and the commencement of the phased wind-down of leased sound stage facilities and Atlanta-area operations in 2026, as well as the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025.
Current wording
•an increase in studio NOI of $12.2 million primarily related to a significant reduction in operating expenses at Quixote due to cost-savings initiatives and the commencement of the phased wind-down of leased sound stage facilities and Atlanta-area operations in 2026, as well as the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025.
Previous wording
•partially offset by a $3.0 million increase in same-store NOI driven by:
Current wording
•partially offset by a $4.2 million increase in same-store NOI driven by:
Previous wording
•an increase in studio NOI of $3.7 million primarily due to higher production activity at our Sunset Las Palmas and Sunset Gower Studios properties in 2026; partially offset by
Current wording
•an increase in studio NOI of $5.6 million primarily due to higher production activity at our Sunset Las Palmas and Sunset Gower Studios properties in 2026; partially offset by
Previous wording
•a decrease in office NOI of $0.8 million primarily due to higher operating expenses at our 1455 Market property in 2026 due to the lease-up of the building and lower ground rent expense at our Palo Alto Square property in 2025, offset by prior period tax refunds at our Skyport Plaza property in 2026 and lower operating expenses at our 901 Market property in 2026 in connection with its repositioning project.
Current wording
•a decrease in office NOI of $1.4 million primarily due to lease expirations at our Hill7 property in mid-2025, lower occupancy at certain of our Peninsula and Silicon Valley properties and higher ground rent expense at our Palo Alto Square property due to a ground rent true-up credit recognized in 2025, partially offset by the commencement of the third phase of the City of San Francisco lease at our 1455 Market property in the second quarter of 2026.
Previous wording
We recorded a $1.4 million loss from unconsolidated real estate entities for the six months ended June 30, 2026 compared to a loss of $1.5 million for the six months ended June 30, 2025. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting, as well as our Sunset Pier 94 Studios property becoming operational during the first quarter of 2026.
Current wording
We recorded a $1.9 million loss from unconsolidated real estate entities for the nine months ended September 30, 2026 compared to a loss of $2.2 million for the nine months ended September 30, 2025. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting, partially offset by losses at our Sunset Pier 94 Studios property after it became operational during the first quarter of 2026, including fewer expenses being capitalized.
Previous wording
We recognized fee income of $2.1 million for the six months ended June 30, 2026 compared to $2.8 million for the six months ended June 30, 2025. The change was primarily due to a reduction in development fees associated with our Sunset Pier 94 Studios development project, which was substantially completed during the first quarter of 2026.
Current wording
We recognized fee income of $3.1 million for the nine months ended September 30, 2026 compared to $3.9 million for the nine months ended September 30, 2025. The change was primarily due to a reduction in development fees associated with our Sunset Pier 94 Studios development project, which was substantially completed during the first quarter of 2026.
Previous wording
Gross interest expense decreased by $17.7 million, or 17.3%, to $84.6 million for the six months ended June 30, 2026 compared to $102.3 million for the six months ended June 30, 2025. The decrease was primarily due to a lower outstanding balance on the unsecured line of credit, lower reference rates on our floating rate debt, the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025, and various loan repayments in 2025, including the loan secured by Element LA, the Series B, C and D notes and the partial repayment of the Office CMBS loan.
Current wording
Gross interest expense decreased by $22.0 million, or 14.6%, to $129.0 million for the nine months ended September 30, 2026 compared to $151.0 million for the nine months ended September 30, 2025. The decrease was primarily due to the repayments of the loan secured by Element LA and the Series B, C and D notes in 2025, no outstanding balance on our unsecured line of credit during 2026, the partial repayment of our Office CMBS loan in the fourth quarter of 2025, the deconsolidation of our Sunset Glenoaks Studios property in the third quarter of 2025 and lower reference rates on our floating rate debt during 2026.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Loss on sale of real estate, net
Current report — wording carried from elsewhere
Unrealized loss on non-real estate investments
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
Gain on sale of real estate, net
Previous report — wording carried elsewhere
General and administrative expenses decreased by $15.8 million, or 56.8%, to $12.0 million for the six months ended June 30, 2026 compared to $27.8 million for the six months ended June 30, 2025. The decrease 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.