Hudson Pacific Properties, Inc.HPP
Hudson Pacific Properties, Inc. Segments Disclosure
Segment Reporting
The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level.
The President, Chief Financial Officer and Chief Operating Officer, collectively, are the Company’s Chief Operating Decision-Maker, or CODM. They evaluate performance and allocate resources based on net operating income because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the segment level and presenting it on an unlevered basis.
Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. Segment assets consist of investment in real estate, non-real estate property, plant and equipment, net, accounts receivable, net, straight-line rents receivables, net, deferred leasing costs and intangible assets, net, operating lease ROU assets and goodwill. Non-segment assets consist of assets in the Company’s corporate non-segment assets, including cash and cash equivalents, restricted cash, prepaid expenses and other assets, net, investment in unconsolidated real estate entities and assets associated with real estate held for sale. Reportable segment asset information is not provided to the CODM as the CODM do not use segment asset information to evaluate the business and allocate resources.
The table below presents the operating activity of the Company’s reportable segments:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Office segment | |||||||||||||||||
| Core office revenues | $ | 682,602 | $ | 679,049 | $ | 798,429 | |||||||||||
| Core office expenses | |||||||||||||||||
| Utilities | (27,296) | (27,780) | (26,214) | ||||||||||||||
| Taxes | (61,007) | (73,862) | (77,672) | ||||||||||||||
| Administrative | (29,341) | (29,511) | (30,251) | ||||||||||||||
| Insurance | (22,965) | (26,846) | (26,408) | ||||||||||||||
Other segment expenses(1) | (129,949) | (134,423) | (137,527) | ||||||||||||||
| Total core office expenses | (270,558) | (292,422) | (298,072) | ||||||||||||||
| Office net operating income | 412,044 | 386,627 | 500,357 | ||||||||||||||
| Studio segment | |||||||||||||||||
| Studio revenues | 135,045 | 149,806 | 139,922 | ||||||||||||||
| Studio expenses | |||||||||||||||||
| Rent expense & real estate taxes | (37,653) | (34,263) | (30,483) | ||||||||||||||
| Cost of goods sold | (20,295) | (25,419) | (20,020) | ||||||||||||||
Other segment expenses(2) | (85,778) | (88,748) | (87,944) | ||||||||||||||
| Total studio expenses | (143,726) | (148,430) | (138,447) | ||||||||||||||
| Studio net operating income | (8,681) | 1,376 | 1,475 | ||||||||||||||
| TOTAL SEGMENT PROFIT | $ | 403,363 | $ | 388,003 | $ | 501,832 | |||||||||||
_________________
1.Includes ground lease rent, cleaning, parking, engineering, security, mechanical, electrical & plumbing and repairs & maintenance expenses.
2.Includes administrative, utilities, security, cleaning, engineering and repairs & maintenance expenses.
The table below presents the reconciliation of segment revenue to consolidated revenue:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Office segment | |||||||||||||||||
| Core office revenues | $ | 682,602 | $ | 679,049 | $ | 798,429 | |||||||||||
| Chargebacks | 13,458 | 13,227 | 13,946 | ||||||||||||||
| Total office revenues | 696,060 | 692,276 | 812,375 | ||||||||||||||
| Studio segment | |||||||||||||||||
| Total studio revenues | 135,045 | 149,806 | 139,922 | ||||||||||||||
| Total revenues | $ | 831,105 | $ | 842,082 | $ | 952,297 | |||||||||||
The table below reconciles net loss to total profit from all segments:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| NET LOSS | $ | (592,298) | $ | (381,406) | $ | (170,700) | |||||||||||
| General and administrative | 72,953 | 79,451 | 74,958 | ||||||||||||||
| Depreciation and amortization | 374,967 | 354,425 | 397,846 | ||||||||||||||
| Loss from unconsolidated real estate entities | 67 | 7,308 | 3,902 | ||||||||||||||
| Fee income | (5,399) | (5,269) | (6,181) | ||||||||||||||
| Interest expense | 172,218 | 177,393 | 214,415 | ||||||||||||||
| Interest income | (6,238) | (2,467) | (2,182) | ||||||||||||||
| Management services reimbursement income—unconsolidated real estate entities | (4,206) | (4,119) | (4,125) | ||||||||||||||
| Management services expense—unconsolidated real estate entities | 4,206 | 4,119 | 4,125 | ||||||||||||||
| Transaction-related expenses | 590 | 2,499 | (1,150) | ||||||||||||||
| Unrealized loss on non-real estate investments | 2,998 | 3,958 | 3,120 | ||||||||||||||
| (Gain) loss on sale of real estate, net | (5,714) | 2,453 | (103,202) | ||||||||||||||
| Impairment loss | 299,320 | 149,664 | 60,158 | ||||||||||||||
| Loss on deconsolidation of real estate entity | 77,907 | — | — | ||||||||||||||
| Loss (gain) on extinguishment of debt | 10,453 | — | (10,000) | ||||||||||||||
| Other expense (income) | 1,812 | (1,647) | 6 | ||||||||||||||
| Loss on sale of bonds | — | — | 34,046 | ||||||||||||||
| Income tax (benefit) provision | (273) | 1,641 | 6,796 | ||||||||||||||
| TOTAL PROFIT FROM ALL SEGMENTS | $ | 403,363 | $ | 388,003 | $ | 501,832 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 18, 2022 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.