x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Hudson Pacific Properties, Inc. | Maryland (State or other jurisdiction of incorporation or organization) | 27-1430478 (I.R.S. Employer Identification Number) | ||||||
Hudson Pacific Properties, L.P. | Maryland (State or other jurisdiction of incorporation or organization) | 80-0579682 (I.R.S. Employer Identification Number) |
11601 Wilshire Blvd., Ninth Floor Los Angeles, California 90025 | ||
(Address of principal executive offices) (Zip Code) |
Hudson Pacific Properties, Inc. Yes x No o | Hudson Pacific Properties, L.P. Yes x No o |
Hudson Pacific Properties, Inc. Yes x No o | Hudson Pacific Properties, L.P. Yes x No o |
Large accelerated filer x | Accelerated filer o | ||||||||
Non-accelerated filer o | |||||||||
Smaller reporting company o | |||||||||
Emerging growth company o |
Large accelerated filer o | Accelerated filer o | ||||||||
Non-accelerated filer x | |||||||||
Smaller reporting company o | |||||||||
Emerging growth company o |
Hudson Pacific Properties, Inc. o | Hudson Pacific Properties, L.P. o |
Hudson Pacific Properties, Inc. Yes o No x | Hudson Pacific Properties, L.P. Yes o No x |
Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||
Hudson Pacific Properties, Inc. | Common Stock, $0.01 par value | HPP | New York Stock Exchange |
Page | ||||||||||||||
ITEM 1. | Financial Statements of Hudson Pacific Properties, Inc. | |||||||||||||
ITEM 1. | Financial Statements of Hudson Pacific Properties, L.P. | |||||||||||||
ITEM 2. | ||||||||||||||
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ITEM 3. | ||||||||||||||
ITEM 4. | ||||||||||||||
ITEM 5. | ||||||||||||||
ITEM 6. | ||||||||||||||
ITEM 1. FINANCIAL STATEMENTS OF |
September 30, 2017 | December 31, 2016 | March 31, 2019 (unaudited) | December 31, 2018 | |||||||||||||||
ASSETS | (unaudited) | ASSETS | ||||||||||||||||
Investment in real estate, at cost | $ | 6,558,898 | $ | 6,099,293 | Investment in real estate, at cost | $ | 6,990,420 | $ | 7,059,537 | |||||||||
Accumulated depreciation and amortization | (504,141 | ) | (387,181 | ) | Accumulated depreciation and amortization | (739,334) | (695,631) | |||||||||||
Investment in real estate, net | 6,054,757 | 5,712,112 | Investment in real estate, net | 6,251,086 | 6,363,906 | |||||||||||||
Cash and cash equivalents | 87,723 | 83,015 | Cash and cash equivalents | 52,445 | 53,740 | |||||||||||||
Restricted cash | 25,784 | 25,177 | Restricted cash | 13,626 | 14,451 | |||||||||||||
Accounts receivable, net | 5,014 | 6,833 | Accounts receivable, net | 17,969 | 14,004 | |||||||||||||
Straight-line rent receivables, net | 97,184 | 82,109 | Straight-line rent receivables, net | 159,004 | 142,369 | |||||||||||||
Deferred leasing costs and lease intangible assets, net | 257,831 | 294,209 | Deferred leasing costs and lease intangible assets, net | 280,193 | 279,896 | |||||||||||||
U.S. Government securities | U.S. Government securities | 144,992 | 146,880 | |||||||||||||||
Operating lease right-of-use asset | Operating lease right-of-use asset | 272,051 | — | |||||||||||||||
Prepaid expenses and other assets, net | 57,360 | 79,058 | Prepaid expenses and other assets, net | 82,441 | 55,633 | |||||||||||||
Assets associated with real estate held for sale | 321,437 | 396,485 | Assets associated with real estate held for sale | 99,821 | — | |||||||||||||
TOTAL ASSETS | $ | 6,907,090 | $ | 6,678,998 | TOTAL ASSETS | $ | 7,373,628 | $ | 7,070,879 | |||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||
Notes payable, net | $ | 2,424,358 | $ | 2,473,323 | ||||||||||||||
Accounts payable and accrued liabilities | 162,938 | 116,973 | ||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||
Unsecured and secured debt, net | Unsecured and secured debt, net | $ | 2,711,632 | $ | 2,623,835 | |||||||||||||
In-substance defeased debt | In-substance defeased debt | 137,417 | 138,223 | |||||||||||||||
Joint venture partner debt | Joint venture partner debt | 66,136 | 66,136 | |||||||||||||||
Accounts payable, accrued liabilities and other | Accounts payable, accrued liabilities and other | 208,047 | 175,300 | |||||||||||||||
Operating lease liability | Operating lease liability | 274,626 | — | |||||||||||||||
Lease intangible liabilities, net | 55,335 | 73,569 | Lease intangible liabilities, net | 41,112 | 45,612 | |||||||||||||
Security deposits and prepaid rent | 66,499 | 70,468 | Security deposits and prepaid rent | 69,251 | 68,687 | |||||||||||||
Derivative liabilities | 819 | 1,303 | ||||||||||||||||
Liabilities associated with real estate held for sale | 224,032 | 230,435 | Liabilities associated with real estate held for sale | 732 | — | |||||||||||||
TOTAL LIABILITIES | 2,933,981 | 2,966,071 | ||||||||||||||||
6.25% Series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 | ||||||||||||||||
EQUITY | ||||||||||||||||||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||||||||||||||||||
Common stock, $0.01 par value, 490,000,000 authorized, 155,302,800 shares and 136,492,235 shares outstanding at September 30, 2017 and December 31, 2016, respectively | 1,553 | 1,364 | ||||||||||||||||
Total liabilities | Total liabilities | 3,508,953 | 3,117,793 | |||||||||||||||
Redeemable preferred units of the operating partnership | Redeemable preferred units of the operating partnership | 9,815 | 9,815 | |||||||||||||||
Redeemable non-controlling interest in consolidated real estate entities | Redeemable non-controlling interest in consolidated real estate entities | 114,616 | 113,141 | |||||||||||||||
Equity | Equity | |||||||||||||||||
Hudson Pacific Properties, Inc. stockholders’ equity | Hudson Pacific Properties, Inc. stockholders’ equity | |||||||||||||||||
Common stock, $0.01 par value, 490,000,000 authorized, 154,373,581 shares and 154,371,538 shares outstanding at March 31, 2019 and December 31, 2018, respectively | Common stock, $0.01 par value, 490,000,000 authorized, 154,373,581 shares and 154,371,538 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 1,543 | 1,543 | |||||||||||||||
Additional paid-in capital | 3,619,940 | 3,109,394 | Additional paid-in capital | 3,485,307 | 3,524,502 | |||||||||||||
Accumulated other comprehensive income | 6,465 | 9,496 | Accumulated other comprehensive income | 9,674 | 17,501 | |||||||||||||
Accumulated income (deficit) | 18,911 | (16,971 | ) | |||||||||||||||
Accumulated deficit | Accumulated deficit | (41,189) | — | |||||||||||||||
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,646,869 | 3,103,283 | Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,455,335 | 3,543,546 | |||||||||||||
Non-controlling interest—members in consolidated entities | 302,111 | 304,608 | Non-controlling interest—members in consolidated entities | 267,039 | 268,246 | |||||||||||||
Non-controlling interest—units in the operating partnership | 13,952 | 294,859 | Non-controlling interest—units in the operating partnership | 17,870 | 18,338 | |||||||||||||
TOTAL EQUITY | 3,962,932 | 3,702,750 | ||||||||||||||||
Total equity | Total equity | 3,740,244 | 3,830,130 | |||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 6,907,090 | $ | 6,678,998 | TOTAL LIABILITIES AND EQUITY | $ | 7,373,628 | $ | 7,070,879 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
REVENUES | |||||||||||||||||
Office | |||||||||||||||||
Rental (Note 2) | $ | 170,197 | $ | 130,082 | |||||||||||||
Tenant recoveries (Note 2) | — | 20,904 | |||||||||||||||
Service revenues (Note 2) | 5,661 | 5,546 | |||||||||||||||
Total office revenues | 175,858 | 156,532 | |||||||||||||||
Studio | |||||||||||||||||
Rental (Note 2) | 12,394 | 10,383 | |||||||||||||||
Tenant recoveries (Note 2) | — | 354 | |||||||||||||||
Service revenues and other (Note 2) | 9,137 | 6,849 | |||||||||||||||
Total studio revenues | 21,531 | 17,586 | |||||||||||||||
Total revenues | 197,389 | 174,118 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Office operating expenses | 60,815 | 53,240 | |||||||||||||||
Studio operating expenses | 11,109 | 9,664 | |||||||||||||||
General and administrative | 18,094 | 15,564 | |||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | |||||||||||||||
Total operating expenses | 158,523 | 139,021 | |||||||||||||||
OTHER EXPENSE (INCOME) | |||||||||||||||||
Interest expense | 24,350 | 20,503 | |||||||||||||||
Interest income | (1,024) | (9) | |||||||||||||||
Transaction-related expenses | 128 | 118 | |||||||||||||||
Other expense (income) | 106 | (404) | |||||||||||||||
Gains on sale of real estate | — | (37,674) | |||||||||||||||
Impairment loss | 52,201 | — | |||||||||||||||
Total other expense (income) | 75,761 | (17,466) | |||||||||||||||
Net (loss) income | (36,895) | 52,563 | |||||||||||||||
Net income attributable to preferred units | (153) | (159) | |||||||||||||||
Net income attributable to participating securities | (308) | (327) | |||||||||||||||
Net income attributable to non-controlling interest in consolidated real estate entities | (2,821) | (3,323) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 600 | — | |||||||||||||||
Net loss (income) attributable to non-controlling interest in the operating partnership | 185 | (177) | |||||||||||||||
NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (39,392) | $ | 48,577 | |||||||||||||
BASIC AND DILUTED PER SHARE AMOUNTS | |||||||||||||||||
Net (loss) income attributable to common stockholders—basic | $ | (0.26) | $ | 0.31 | |||||||||||||
Net (loss) income attributable to common stockholders—diluted | $ | (0.26) | $ | 0.31 | |||||||||||||
Weighted average shares of common stock outstanding—basic | 154,396,159 | 155,626,055 | |||||||||||||||
Weighted average shares of common stock outstanding—diluted | 154,396,159 | 156,714,822 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES | |||||||||||||||
Office | |||||||||||||||
Rental | $ | 139,157 | $ | 123,919 | $ | 406,275 | $ | 358,193 | |||||||
Tenant recoveries | 24,982 | 22,657 | 67,421 | 64,493 | |||||||||||
Parking and other | 8,035 | 5,521 | 22,146 | 16,103 | |||||||||||
Total Office revenues | 172,174 | 152,097 | 495,842 | 438,789 | |||||||||||
Media & Entertainment | |||||||||||||||
Rental | 11,012 | 7,102 | 26,802 | 19,987 | |||||||||||
Tenant recoveries | 133 | 243 | 927 | 655 | |||||||||||
Other property-related revenue | 6,561 | 5,005 | 14,964 | 12,784 | |||||||||||
Other | 141 | 136 | 271 | 226 | |||||||||||
Total Media & Entertainment revenues | 17,847 | 12,486 | 42,964 | 33,652 | |||||||||||
TOTAL REVENUES | 190,021 | 164,583 | 538,806 | 472,441 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Office operating expenses | 59,102 | 53,975 | 162,524 | 150,769 | |||||||||||
Media & Entertainment operating expenses | 10,588 | 6,499 | 24,842 | 18,746 | |||||||||||
General and administrative | 13,013 | 12,955 | 41,329 | 38,474 | |||||||||||
Depreciation and amortization | 71,158 | 67,414 | 217,340 | 201,890 | |||||||||||
TOTAL OPERATING EXPENSES | 153,861 | 140,843 | 446,035 | 409,879 | |||||||||||
INCOME FROM OPERATIONS | 36,160 | 23,740 | 92,771 | 62,562 | |||||||||||
OTHER EXPENSE (INCOME) | |||||||||||||||
Interest expense | 22,461 | 19,910 | 66,086 | 54,775 | |||||||||||
Interest income | (44 | ) | (130 | ) | (90 | ) | (216 | ) | |||||||
Unrealized loss (gain) on ineffective portion of derivative instruments | 37 | (879 | ) | 82 | 1,630 | ||||||||||
Transaction-related expenses | 598 | 315 | 598 | 376 | |||||||||||
Other income | (1,402 | ) | (693 | ) | (2,656 | ) | (716 | ) | |||||||
TOTAL OTHER EXPENSES | 21,650 | 18,523 | 64,020 | 55,849 | |||||||||||
INCOME BEFORE GAINS ON SALE OF REAL ESTATE | 14,510 | 5,217 | 28,751 | 6,713 | |||||||||||
Gains on sale of real estate | — | — | 16,866 | 8,515 | |||||||||||
NET INCOME | 14,510 | 5,217 | 45,617 | 15,228 | |||||||||||
Net income attributable to preferred units | (159 | ) | (159 | ) | (477 | ) | (477 | ) | |||||||
Net income attributable to participating securities | (255 | ) | (196 | ) | (750 | ) | (589 | ) | |||||||
Net income attributable to non-controlling interest in consolidated entities | (2,991 | ) | (2,525 | ) | (9,002 | ) | (6,866 | ) | |||||||
Net income attributable to non-controlling interest in units in the operating partnership | (41 | ) | (490 | ) | (256 | ) | (2,357 | ) | |||||||
Net income attributable to Hudson Pacific Properties, Inc. common stockholders | $ | 11,064 | $ | 1,847 | $ | 35,132 | $ | 4,939 | |||||||
Basic and diluted per share amounts: | |||||||||||||||
Net income attributable to common stockholders—basic | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | |||||||
Net income attributable to common stockholders—diluted | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | |||||||
Weighted average shares of common stock outstanding—basic | 155,302,800 | 115,083,622 | 152,874,952 | 99,862,583 | |||||||||||
Weighted average shares of common stock outstanding—diluted | 156,093,736 | 116,262,622 | 153,648,888 | 100,979,583 | |||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.20 | $ | 0.75 | $ | 0.60 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | |||||||||||||
Other comprehensive (loss) income: change in fair value of derivatives | (7,864) | 9,513 | |||||||||||||||
Comprehensive (loss) income | (44,759) | 62,076 | |||||||||||||||
Comprehensive income attributable to preferred units | (153) | (159) | |||||||||||||||
Comprehensive income attributable to participating securities | (308) | (391) | |||||||||||||||
Comprehensive income attributable to non-controlling interest in consolidated entities | (2,821) | (3,323) | |||||||||||||||
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 600 | — | |||||||||||||||
Comprehensive loss (income) attributable to non-controlling interest in the operating partnership | 222 | (211) | |||||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (47,219) | $ | 57,992 | |||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,510 | $ | 5,217 | $ | 45,617 | $ | 15,228 | |||||||
Other comprehensive income (loss): change in fair value of derivative instruments | 507 | 3,087 | 611 | (20,818 | ) | ||||||||||
Comprehensive income (loss) | 15,017 | 8,304 | 46,228 | (5,590 | ) | ||||||||||
Comprehensive income attributable to preferred units | (159 | ) | (159 | ) | (477 | ) | (477 | ) | |||||||
Comprehensive income attributable to participating securities | (255 | ) | (196 | ) | (750 | ) | (589 | ) | |||||||
Comprehensive income attributable to non-controlling interest in consolidated entities | (2,991 | ) | (2,525 | ) | (9,002 | ) | (6,866 | ) | |||||||
Comprehensive (income) loss attributable to units in the operating partnership | (43 | ) | (1,137 | ) | (276 | ) | 5,903 | ||||||||
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders | $ | 11,569 | $ | 4,287 | $ | 35,723 | $ | (7,619 | ) |
Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling interest | |||||||||||||||||||||||||||||||||||||||||||
Shares of Common Stock | Stock Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income | Units in the operating partnership | Members in Consolidated Entities | Total Equity | |||||||||||||||||||||||||||||||||||||
Balance, December 31, 2017 | 155,602,508 | $ | 1,556 | $ | 3,622,988 | $ | — | $ | 13,227 | $ | 14,591 | $ | 258,602 | $ | 3,910,964 | |||||||||||||||||||||||||||||
Cumulative adjustment related to adoption of ASU 2017-12 | — | — | — | (231) | 230 | 1 | — | — | ||||||||||||||||||||||||||||||||||||
Contributions | — | — | — | — | — | — | 2,691 | 2,691 | ||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (1,060) | (1,060) | ||||||||||||||||||||||||||||||||||||
Proceeds from sale of common stock, net of underwriters discount and transaction costs | — | — | (173) | — | — | — | — | (173) | ||||||||||||||||||||||||||||||||||||
Issuance of unrestricted stock | 43,900 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld to satisfy tax withholding | (20,353) | — | (693) | — | — | — | — | (693) | ||||||||||||||||||||||||||||||||||||
Declared dividend | — | — | — | (39,173) | — | (178) | — | (39,351) | ||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 3,551 | — | 1,019 | — | 4,570 | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | 48,904 | — | 177 | 3,323 | 52,404 | ||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives | — | — | — | — | 9,479 | 34 | — | 9,513 | ||||||||||||||||||||||||||||||||||||
Balance, March 31, 2018 | 155,626,055 | $ | 1,556 | $ | 3,625,673 | $ | 9,500 | $ | 22,936 | $ | 15,644 | $ | 263,556 | $ | 3,938,865 | |||||||||||||||||||||||||||||
Balance at December 31, 2018 | 154,371,538 | $ | 1,543 | $ | 3,524,502 | $ | — | $ | 17,501 | $ | 18,338 | $ | 268,246 | $ | 3,830,130 | |||||||||||||||||||||||||||||
Cumulative adjustment related to adoption of ASC 842 | — | — | — | (2,105) | — | — | — | (2,105) | ||||||||||||||||||||||||||||||||||||
Distributions | — | — | — | — | — | — | (4,028) | (4,028) | ||||||||||||||||||||||||||||||||||||
Issuance of unrestricted stock | 128,923 | 1 | (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Shares withheld to satisfy tax withholding | (126,880) | (1) | (3,667) | — | — | — | — | (3,668) | ||||||||||||||||||||||||||||||||||||
Declared dividend | — | — | (39,241) | — | — | (1,186) | — | (40,427) | ||||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 3,714 | — | — | 1,465 | — | 5,179 | ||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | (39,084) | — | (185) | 2,821 | (36,448) | ||||||||||||||||||||||||||||||||||||
Change in fair value of derivatives | — | — | — | — | (7,827) | (37) | — | (7,864) | ||||||||||||||||||||||||||||||||||||
Redemption of common units in the operating partnership | — | — | — | — | — | (525) | — | (525) | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 154,373,581 | $ | 1,543 | $ | 3,485,307 | $ | (41,189) | $ | 9,674 | $ | 17,870 | $ | 267,039 | $ | 3,740,244 | |||||||||||||||||||||||||||||
Hudson Pacific Properties, Inc. Stockholders’ Equity | |||||||||||||||||||||||
Shares of Common Stock | Stock Amount | Additional Paid-in Capital | Accumulated (Deficit) Income | Accumulated Other Comprehensive (Loss) Income | Non- controlling Interest—Units in the Operating Partnership | Non-controlling Interest—Members in Consolidated Entities | Total Equity | ||||||||||||||||
Balance at January 1, 2016 | 89,153,780 | $ | 891 | $ | 1,710,979 | $ | (44,955 | ) | $ | (1,081 | ) | $ | 1,800,578 | $ | 262,625 | $ | 3,729,037 | ||||||
Contributions | — | — | — | — | — | — | 33,996 | 33,996 | |||||||||||||||
Distributions | — | — | — | — | — | — | (1,303 | ) | (1,303 | ) | |||||||||||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 47,010,695 | 470 | 1,449,111 | — | — | — | — | 1,449,581 | |||||||||||||||
Issuance of unrestricted stock | 590,520 | 6 | — | — | — | — | — | 6 | |||||||||||||||
Shares withheld to satisfy tax withholding | (262,760 | ) | (3 | ) | (8,424 | ) | — | — | — | — | (8,427 | ) | |||||||||||
Declared dividend | — | — | (90,005 | ) | — | — | (27,814 | ) | — | (117,819 | ) | ||||||||||||
Amortization of stock-based compensation | — | — | 13,609 | — | — | 1,045 | — | 14,654 | |||||||||||||||
Net income | — | — | — | 27,984 | — | 5,848 | 9,290 | 43,122 | |||||||||||||||
Change in fair value of derivatives | — | — | — | — | 10,577 | (4,635 | ) | — | 5,942 | ||||||||||||||
Redemption of common units in the operating partnership | — | — | 34,124 | — | — | (1,480,163 | ) | — | (1,446,039 | ) | |||||||||||||
Balance at December 31, 2016 | 136,492,235 | 1,364 | 3,109,394 | (16,971 | ) | 9,496 | 294,859 | 304,608 | 3,702,750 | ||||||||||||||
Contributions | — | — | — | — | — | — | 3,870 | 3,870 | |||||||||||||||
Distributions | — | — | — | — | — | — | (15,369 | ) | (15,369 | ) | |||||||||||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 18,656,575 | 187 | 647,337 | — | — | — | — | 647,524 | |||||||||||||||
Issuance of unrestricted stock | 274,251 | 3 | (3 | ) | — | — | — | — | — | ||||||||||||||
Shares withheld to satisfy tax withholding | (120,261 | ) | (1 | ) | (4,202 | ) | — | — | — | — | (4,203 | ) | |||||||||||
Declared dividend | — | — | (117,916 | ) | — | — | (492 | ) | — | (118,408 | ) | ||||||||||||
Amortization of stock-based compensation | — | — | 9,865 | — | — | 2,007 | — | 11,872 | |||||||||||||||
Net income | — | — | — | 35,882 | — | 256 | 9,002 | 45,140 | |||||||||||||||
Change in fair value of derivatives | — | — | — | — | 591 | 20 | — | 611 | |||||||||||||||
Redemption of common units in the operating partnership | — | — | (24,535 | ) | — | (3,622 | ) | (282,698 | ) | — | (310,855 | ) | |||||||||||
Balance at September 30, 2017 | 155,302,800 | $ | 1,553 | $ | 3,619,940 | $ | 18,911 | $ | 6,465 | $ | 13,952 | $ | 302,111 | $ | 3,962,932 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | |||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | |||||||||||||||
Non-cash portion of interest expense | 1,591 | 1,658 | |||||||||||||||
Amortization of stock-based compensation | 5,150 | 4,338 | |||||||||||||||
Straight-line rents | (16,635) | (9,942) | |||||||||||||||
Straight-line rent expenses | 366 | 136 | |||||||||||||||
Amortization of above- and below-market leases, net | (4,179) | (3,811) | |||||||||||||||
Amortization of above- and below-market ground lease, net | 615 | 624 | |||||||||||||||
Amortization of lease incentive costs | 326 | 303 | |||||||||||||||
Other non-cash adjustments | — | 256 | |||||||||||||||
Impairment loss | 52,201 | — | |||||||||||||||
Gains on sale of real estate | — | (37,674) | |||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (4,263) | (1,782) | |||||||||||||||
Deferred leasing costs and lease intangibles | (13,675) | (6,614) | |||||||||||||||
Prepaid expenses and other assets | 2,771 | 3,313 | |||||||||||||||
Accounts payable, accrued liabilities and other | 33,004 | (33) | |||||||||||||||
Security deposits and prepaid rent | 564 | 559 | |||||||||||||||
Net cash provided by operating activities | 89,446 | 64,447 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Additions to investment in real estate | (94,615) | (103,512) | |||||||||||||||
Maturities of U.S. Government securities | 1,932 | — | |||||||||||||||
Proceeds from sale of real estate | — | 237,004 | |||||||||||||||
Deposits for property acquisitions | (35,584) | — | |||||||||||||||
Net cash (used in) provided by investing activities | (128,267) | 133,492 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from unsecured and secured debt | 430,001 | 130,000 | |||||||||||||||
Payments of unsecured and secured debt | (335,145) | (308,529) | |||||||||||||||
Payments of in-substance defeased debt | (806) | — | |||||||||||||||
Proceeds from issuance of common stock, net | — | (173) | |||||||||||||||
Repurchase of common units in the operating partnership | (525) | — | |||||||||||||||
Dividends paid to common stock and unit-holders | (40,427) | (39,351) | |||||||||||||||
Dividends paid to preferred unit-holders | (153) | (159) | |||||||||||||||
Contribution of redeemable non-controlling member in consolidated real estate entities | 2,075 | — | |||||||||||||||
Contribution of non-controlling member in consolidated real estate entities | — | 2,691 | |||||||||||||||
Distribution to non-controlling member in consolidated real estate entities | (4,028) | (1,060) | |||||||||||||||
Payments to satisfy tax withholding | (3,668) | (693) | |||||||||||||||
Payment of loan costs | (10,623) | (6,965) | |||||||||||||||
Net cash provided by (used in) financing activities | 36,701 | (224,239) | |||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | (2,120) | (26,300) | |||||||||||||||
Cash and cash equivalents and restricted cash—beginning of period | 68,191 | 101,280 | |||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | 66,071 | $ | 74,980 | |||||||||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 45,617 | $ | 15,228 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 217,340 | 201,890 | |||||
Amortization of deferred financing costs and loan premium, net | 3,558 | 3,278 | |||||
Amortization of stock-based compensation | 11,237 | 9,931 | |||||
Straight-line rents | (15,174 | ) | (19,398 | ) | |||
Straight-line rent expenses | 296 | 886 | |||||
Amortization of above- and below-market leases, net | (14,326 | ) | (13,804 | ) | |||
Amortization of above- and below-market ground lease, net | 2,088 | 1,604 | |||||
Amortization of lease incentive costs | 1,140 | 1,017 | |||||
Other non-cash adjustments(1) | 598 | 682 | |||||
Gains on sale of real estate | (16,866 | ) | (8,515 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 1,649 | 12,521 | |||||
Deferred leasing costs and lease intangibles | (23,270 | ) | (34,610 | ) | |||
Prepaid expenses and other assets | (3,000 | ) | (5,008 | ) | |||
Accounts payable and accrued liabilities | 34,660 | 32,786 | |||||
Security deposits and prepaid rent | (5,943 | ) | 2,364 | ||||
Net cash provided by operating activities | 239,604 | 200,852 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Additions to investment property | (224,797 | ) | (183,286 | ) | |||
Property acquisitions | (257,734 | ) | (307,919 | ) | |||
Proceeds from sales of real estate | 81,707 | 283,855 | |||||
Contributions to unconsolidated entities | (1,071 | ) | (28,393 | ) | |||
Distributions from unconsolidated entities | 17,416 | — | |||||
Deposit for property acquisitions | — | (13,130 | ) | ||||
Proceed from repayment of notes receivable | — | 28,892 | |||||
Net cash used in investing activities | (384,479 | ) | (219,981 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 270,000 | 957,000 | |||||
Payments of notes payable | (321,892 | ) | (808,006 | ) | |||
Proceeds from issuance of common stock, net | 647,524 | 880,514 | |||||
Payment for redemption of common units in the operating partnership | (310,855 | ) | (876,213 | ) | |||
Distributions paid to common stockholders and unitholders | (118,408 | ) | (88,469 | ) | |||
Distributions paid to preferred unitholders | (477 | ) | (477 | ) | |||
Contributions from non-controlling member in consolidated entities | 3,870 | 103 | |||||
Distributions to non-controlling member in consolidated entities | (15,369 | ) | (990 | ) | |||
Payments to satisfy tax withholding | (4,203 | ) | (1,776 | ) | |||
Payments of loan costs | — | (2,661 | ) | ||||
Net cash provided by financing activities | 150,190 | 59,025 | |||||
Net increase in cash and cash equivalents and restricted cash | 5,315 | 39,896 | |||||
Cash and cash equivalents and restricted cash—beginning of period | 108,192 | 71,561 | |||||
Cash and cash equivalents and restricted cash—end of period | $ | 113,507 | $ | 111,457 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid for interest including amounts capitalized | $ | 47,852 | $ | 53,474 | |||
NON-CASH INVESTING ACTIVITIES: | |||||||
Accounts payable and accrued liabilities for real estate investments | $ | (6,740 | ) | $ | (10,227 | ) | |
Reclassification of investment in unconsolidated entities for real estate investments | $ | 7,835 | $ | — |
March 31, 2019 (unaudited) | December 31, 2018 | ||||||||||
ASSETS | |||||||||||
Investment in real estate, at cost | $ | 6,990,420 | $ | 7,059,537 | |||||||
Accumulated depreciation and amortization | (739,334) | (695,631) | |||||||||
Investment in real estate, net | 6,251,086 | 6,363,906 | |||||||||
Cash and cash equivalents | 52,445 | 53,740 | |||||||||
Restricted cash | 13,626 | 14,451 | |||||||||
Accounts receivable, net | 17,969 | 14,004 | |||||||||
Straight-line rent receivables, net | 159,004 | 142,369 | |||||||||
Deferred leasing costs and lease intangible assets, net | 280,193 | 279,896 | |||||||||
U.S. Government securities | 144,992 | 146,880 | |||||||||
Operating lease right-of-use asset | 272,051 | — | |||||||||
Prepaid expenses and other assets, net | 82,441 | 55,633 | |||||||||
Assets associated with real estate held for sale | 99,821 | — | |||||||||
TOTAL ASSETS | $ | 7,373,628 | $ | 7,070,879 | |||||||
LIABILITIES AND CAPITAL | |||||||||||
Liabilities | |||||||||||
Unsecured and secured debt, net | $ | 2,711,632 | $ | 2,623,835 | |||||||
In-substance defeased debt | 137,417 | 138,223 | |||||||||
Joint venture partner debt | 66,136 | 66,136 | |||||||||
Accounts payable, accrued liabilities and other | 208,047 | 175,300 | |||||||||
Operating lease liability | 274,626 | — | |||||||||
Lease intangible liabilities, net | 41,112 | 45,612 | |||||||||
Security deposits and prepaid rent | 69,251 | 68,687 | |||||||||
Liabilities associated with real estate held for sale | 732 | — | |||||||||
Total liabilities | 3,508,953 | 3,117,793 | |||||||||
Redeemable preferred units of the operating partnership | 9,815 | 9,815 | |||||||||
Redeemable non-controlling interest in consolidated real estate entities | 114,616 | 113,141 | |||||||||
Capital | |||||||||||
Hudson Pacific Properties, L.P. partners’ capital | |||||||||||
Common units, 155,094,354 and 154,940,583 issued and outstanding at March 31, 2019 and December 31, 2018, respectively. | 3,463,504 | 3,544,319 | |||||||||
Accumulated other comprehensive income | 9,701 | 17,565 | |||||||||
Total Hudson Pacific Properties, L.P. partners’ capital | 3,473,205 | 3,561,884 | |||||||||
Non-controlling interest—members in consolidated entities | 267,039 | 268,246 | |||||||||
Total capital | 3,740,244 | 3,830,130 | |||||||||
TOTAL LIABILITIES AND CAPITAL | $ | 7,373,628 | $ | 7,070,879 | |||||||
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | (unaudited) | ||||||
Investment in real estate, at cost | $ | 6,558,898 | $ | 6,099,293 | |||
Accumulated depreciation and amortization | (504,141 | ) | (387,181 | ) | |||
Investment in real estate, net | 6,054,757 | 5,712,112 | |||||
Cash and cash equivalents | 87,723 | 83,015 | |||||
Restricted cash | 25,784 | 25,177 | |||||
Accounts receivable, net | 5,014 | 6,833 | |||||
Straight-line rent receivables, net | 97,184 | 82,109 | |||||
Deferred leasing costs and lease intangible assets, net | 257,831 | 294,209 | |||||
Prepaid expenses and other assets, net | 57,360 | 79,058 | |||||
Assets associated with real estate held for sale | 321,437 | 396,485 | |||||
TOTAL ASSETS | $ | 6,907,090 | $ | 6,678,998 | |||
LIABILITIES | |||||||
Notes payable, net | $ | 2,424,358 | $ | 2,473,323 | |||
Accounts payable and accrued liabilities | 162,938 | 116,973 | |||||
Lease intangible liabilities, net | 55,335 | 73,569 | |||||
Security deposits and prepaid rent | 66,499 | 70,468 | |||||
Derivative liabilities | 819 | 1,303 | |||||
Liabilities associated with real estate held for sale | 224,032 | 230,435 | |||||
TOTAL LIABILITIES | 2,933,981 | 2,966,071 | |||||
6.25% Series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 | |||||
CAPITAL | |||||||
Hudson Pacific Properties, L.P. partners’ capital: | |||||||
Common units, 155,871,845 and 145,942,855 issued and outstanding at September 30, 2017 and December 31, 2016, respectively. | 3,654,332 | 3,392,264 | |||||
Accumulated other comprehensive income | 6,489 | 5,878 | |||||
Total Hudson Pacific Properties, L.P. partners’ capital | 3,660,821 | 3,398,142 | |||||
Non-controlling interest—members in consolidated entities | 302,111 | 304,608 | |||||
TOTAL CAPITAL | 3,962,932 | 3,702,750 | |||||
TOTAL LIABILITIES AND CAPITAL | $ | 6,907,090 | $ | 6,678,998 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
REVENUES | |||||||||||||||||
Office | |||||||||||||||||
Rental (Note 2) | $ | 170,197 | $ | 130,082 | |||||||||||||
Tenant recoveries (Note 2) | — | 20,904 | |||||||||||||||
Service revenues (Note 2) | 5,661 | 5,546 | |||||||||||||||
Total office revenues | 175,858 | 156,532 | |||||||||||||||
Studio | |||||||||||||||||
Rental (Note 2) | 12,394 | 10,383 | |||||||||||||||
Tenant recoveries (Note 2) | — | 354 | |||||||||||||||
Service revenues and other (Note 2) | 9,137 | 6,849 | |||||||||||||||
Total studio revenues | 21,531 | 17,586 | |||||||||||||||
Total revenues | 197,389 | 174,118 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||
Office operating expenses | 60,815 | 53,240 | |||||||||||||||
Studio operating expenses | 11,109 | 9,664 | |||||||||||||||
General and administrative | 18,094 | 15,564 | |||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | |||||||||||||||
Total operating expenses | 158,523 | 139,021 | |||||||||||||||
OTHER EXPENSE (INCOME) | |||||||||||||||||
Interest expense | 24,350 | 20,503 | |||||||||||||||
Interest income | (1,024) | (9) | |||||||||||||||
Transaction-related expenses | 128 | 118 | |||||||||||||||
Other expense (income) | 106 | (404) | |||||||||||||||
Gains on sale of real estate | — | (37,674) | |||||||||||||||
Impairment loss | 52,201 | — | |||||||||||||||
Total other expense (income) | 75,761 | (17,466) | |||||||||||||||
Net (loss) income | (36,895) | 52,563 | |||||||||||||||
Net income attributable to non-controlling interest in consolidated real estate entities | (2,821) | (3,323) | |||||||||||||||
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 600 | — | |||||||||||||||
Net (loss) income attributable to Hudson Pacific Properties, L.P. | (39,116) | 49,240 | |||||||||||||||
Net income attributable to preferred units | (153) | (159) | |||||||||||||||
Net income attributable to participating securities | (308) | (327) | |||||||||||||||
NET (LOSS) INCOME AVAILABLE TO COMMON UNITHOLDERS | $ | (39,577) | $ | 48,754 | |||||||||||||
BASIC AND DILUTED PER UNIT AMOUNTS | |||||||||||||||||
Net (loss) income attributable to common unitholders—basic | $ | (0.26) | $ | 0.31 | |||||||||||||
Net (loss) income attributable to common unitholders—diluted | $ | (0.26) | $ | 0.31 | |||||||||||||
Weighted average shares of common units outstanding—basic | 155,120,144 | 156,195,100 | |||||||||||||||
Weighted average shares of common units outstanding—diluted | 155,120,144 | 157,283,867 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
REVENUES | |||||||||||||||
Office | |||||||||||||||
Rental | $ | 139,157 | $ | 123,919 | $ | 406,275 | $ | 358,193 | |||||||
Tenant recoveries | 24,982 | 22,657 | 67,421 | 64,493 | |||||||||||
Parking and other | 8,035 | 5,521 | 22,146 | 16,103 | |||||||||||
Total Office revenues | 172,174 | 152,097 | 495,842 | 438,789 | |||||||||||
Media & Entertainment | |||||||||||||||
Rental | 11,012 | 7,102 | 26,802 | 19,987 | |||||||||||
Tenant recoveries | 133 | 243 | 927 | 655 | |||||||||||
Other property-related revenue | 6,561 | 5,005 | 14,964 | 12,784 | |||||||||||
Other | 141 | 136 | 271 | 226 | |||||||||||
Total Media & Entertainment revenues | 17,847 | 12,486 | 42,964 | 33,652 | |||||||||||
TOTAL REVENUES | 190,021 | 164,583 | 538,806 | 472,441 | |||||||||||
OPERATING EXPENSES | |||||||||||||||
Office operating expenses | 59,102 | 53,975 | 162,524 | 150,769 | |||||||||||
Media & Entertainment operating expenses | 10,588 | 6,499 | 24,842 | 18,746 | |||||||||||
General and administrative | 13,013 | 12,955 | 41,329 | 38,474 | |||||||||||
Depreciation and amortization | 71,158 | 67,414 | 217,340 | 201,890 | |||||||||||
TOTAL OPERATING EXPENSES | 153,861 | 140,843 | 446,035 | 409,879 | |||||||||||
INCOME FROM OPERATIONS | 36,160 | 23,740 | 92,771 | 62,562 | |||||||||||
OTHER EXPENSE (INCOME) | |||||||||||||||
Interest expense | 22,461 | 19,910 | 66,086 | 54,775 | |||||||||||
Interest income | (44 | ) | (130 | ) | (90 | ) | (216 | ) | |||||||
Unrealized loss (gain) on ineffective portion of derivative instruments | 37 | (879 | ) | 82 | 1,630 | ||||||||||
Transaction-related expenses | 598 | 315 | 598 | 376 | |||||||||||
Other income | (1,402 | ) | (693 | ) | (2,656 | ) | (716 | ) | |||||||
TOTAL OTHER EXPENSES | 21,650 | 18,523 | 64,020 | 55,849 | |||||||||||
INCOME BEFORE GAINS ON SALE OF REAL ESTATE | 14,510 | 5,217 | 28,751 | 6,713 | |||||||||||
Gains on sale of real estate | — | — | 16,866 | 8,515 | |||||||||||
NET INCOME | 14,510 | 5,217 | 45,617 | 15,228 | |||||||||||
Net income attributable to non-controlling interest in consolidated entities | (2,991 | ) | (2,525 | ) | (9,002 | ) | (6,866 | ) | |||||||
Net income attributable to Hudson Pacific Properties, L.P. | 11,519 | 2,692 | 36,615 | 8,362 | |||||||||||
Net income attributable to preferred units | (159 | ) | (159 | ) | (477 | ) | (477 | ) | |||||||
Net income attributable to participating securities | (255 | ) | (196 | ) | (750 | ) | (589 | ) | |||||||
Net income available to Hudson Pacific Properties, L.P. common unitholders | $ | 11,105 | $ | 2,337 | $ | 35,388 | $ | 7,296 | |||||||
Basic and diluted per unit amounts: | |||||||||||||||
Net income attributable to common unitholders—basic | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | |||||||
Net income attributable to common unitholders—diluted | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | |||||||
Weighted average shares of common units outstanding—basic | 155,871,845 | 145,614,312 | 153,736,796 | 145,550,685 | |||||||||||
Weighted average shares of common units outstanding—diluted | 156,662,781 | 146,793,312 | 154,510,732 | 146,667,685 | |||||||||||
Dividends declared per unit | $ | 0.25 | $ | 0.20 | $ | 0.75 | $ | 0.60 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | |||||||||||||
Other comprehensive (loss) income: change in fair value of derivatives | (7,864) | 9,513 | |||||||||||||||
Comprehensive (loss) income | (44,759) | 62,076 | |||||||||||||||
Comprehensive income attributable to preferred units | (153) | (159) | |||||||||||||||
Comprehensive income attributable to participating securities | (308) | (391) | |||||||||||||||
Comprehensive income attributable to non-controlling interest in consolidated entities | (2,821) | (3,323) | |||||||||||||||
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 600 | — | |||||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO PARTNERS’ CAPITAL | $ | (47,441) | $ | 58,203 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,510 | $ | 5,217 | $ | 45,617 | $ | 15,228 | |||||||
Other comprehensive income (loss): change in fair value of derivative instruments | 507 | 3,087 | 611 | (20,818 | ) | ||||||||||
Comprehensive income (loss) | 15,017 | 8,304 | 46,228 | (5,590 | ) | ||||||||||
Comprehensive income attributable to preferred units | (159 | ) | (159 | ) | (477 | ) | (477 | ) | |||||||
Comprehensive income attributable to participating securities | (255 | ) | (196 | ) | (750 | ) | (589 | ) | |||||||
Comprehensive income attributable to non-controlling interest in consolidated entities | (2,991 | ) | (2,525 | ) | (9,002 | ) | (6,866 | ) | |||||||
Comprehensive income (loss) attributable to Hudson Pacific Properties, L.P. partners’ capital | $ | 11,612 | $ | 5,424 | $ | 35,999 | $ | (13,522 | ) |
Hudson Pacific Properties, L.P. Partners’ Capital | ||||||||||||||||||||||||||
Number of Common Units | Common Units | Accumulated Other Comprehensive Income | Total Partners’ Capital | Non-controlling Interest—Members in Consolidated Entities | Total Capital | |||||||||||||||||||||
Balance at December 31, 2017 | 156,171,553 | $ | 3,639,086 | $ | 13,276 | $ | 3,652,362 | $ | 258,602 | $ | 3,910,964 | |||||||||||||||
Cumulative adjustment related to adoption of ASU 2017-12 | — | (231) | 231 | — | — | — | ||||||||||||||||||||
Contributions | — | — | — | — | 2,691 | 2,691 | ||||||||||||||||||||
Distributions | — | — | — | — | (1,060) | (1,060) | ||||||||||||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | — | (173) | — | (173) | — | (173) | ||||||||||||||||||||
Issuance of unrestricted units | 43,900 | — | — | — | — | — | ||||||||||||||||||||
Units withheld to satisfy tax withholding | (20,353) | (693) | — | (693) | — | (693) | ||||||||||||||||||||
Declared distributions | — | (39,351) | — | (39,351) | — | (39,351) | ||||||||||||||||||||
Amortization of unit-based compensation | — | 4,570 | — | 4,570 | — | 4,570 | ||||||||||||||||||||
Net income | — | 49,081 | — | 49,081 | 3,323 | 52,404 | ||||||||||||||||||||
Change in fair value of derivatives | — | — | 9,513 | 9,513 | — | 9,513 | ||||||||||||||||||||
Balance at March 31, 2018 | 156,195,100 | $ | 3,652,289 | $ | 23,020 | $ | 3,675,309 | $ | 263,556 | $ | 3,938,865 | |||||||||||||||
Balance at December 31, 2018 | 154,940,583 | 3,544,319 | 17,565 | 3,561,884 | 268,246 | 3,830,130 | ||||||||||||||||||||
Cumulative adjustment related to adoption of ASC 842 | — | (2,105) | — | (2,105) | — | (2,105) | ||||||||||||||||||||
Distributions | — | — | — | — | (4,028) | (4,028) | ||||||||||||||||||||
Issuance of unrestricted units | 298,727 | — | — | — | — | — | ||||||||||||||||||||
Units withheld to satisfy tax withholding | (126,880) | (3,668) | — | (3,668) | — | (3,668) | ||||||||||||||||||||
Declared distributions | — | (40,427) | — | (40,427) | — | (40,427) | ||||||||||||||||||||
Amortization of unit-based compensation | — | 5,179 | — | 5,179 | — | 5,179 | ||||||||||||||||||||
Net (loss) income | — | (39,269) | — | (39,269) | 2,821 | (36,448) | ||||||||||||||||||||
Change in fair value of derivatives | — | — | (7,864) | (7,864) | — | (7,864) | ||||||||||||||||||||
Redemption of common units | (18,076) | (525) | — | (525) | — | (525) | ||||||||||||||||||||
Balance at March 31, 2019 | 155,094,354 | $ | 3,463,504 | $ | 9,701 | $ | 3,473,205 | $ | 267,039 | $ | 3,740,244 |
Hudson Pacific Properties, L.P. Partners’ Capital | ||||||||||||||
Number of Common Units | Common Units | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interest—Members in Consolidated Entities | Total Capital | ||||||||||
Balance at January 1, 2016 | 145,450,095 | $ | 3,466,476 | $ | (64 | ) | $ | 262,625 | $ | 3,729,037 | ||||
Contributions | — | — | — | 33,996 | 33,996 | |||||||||
Distributions | — | — | — | (1,303 | ) | (1,303 | ) | |||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 47,010,695 | 1,449,581 | — | — | 1,449,581 | |||||||||
Issuance of unrestricted units | 590,520 | 6 | — | — | 6 | |||||||||
Units withheld to satisfy tax withholding | (262,760 | ) | (8,427 | ) | — | — | (8,427 | ) | ||||||
Declared distributions | — | (117,819 | ) | — | — | (117,819 | ) | |||||||
Amortization of unit-based compensation | — | 14,654 | — | — | 14,654 | |||||||||
Net income | — | 33,832 | — | 9,290 | 43,122 | |||||||||
Change in fair value of derivative instruments | — | — | 5,942 | — | 5,942 | |||||||||
Redemption of common units | (46,845,695 | ) | (1,446,039 | ) | — | — | (1,446,039 | ) | ||||||
Balance at December 31, 2016 | 145,942,855 | 3,392,264 | 5,878 | 304,608 | 3,702,750 | |||||||||
Contributions | — | — | — | 3,870 | 3,870 | |||||||||
Distributions | — | — | — | (15,369 | ) | (15,369 | ) | |||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 18,656,575 | 647,524 | — | — | 647,524 | |||||||||
Issuance of unrestricted units | 274,251 | — | — | — | — | |||||||||
Units withheld to satisfy tax withholding | (120,261 | ) | (4,203 | ) | — | — | (4,203 | ) | ||||||
Declared distributions | — | (118,408 | ) | — | — | (118,408 | ) | |||||||
Amortization of unit-based compensation | — | 11,872 | — | — | 11,872 | |||||||||
Net income | — | 36,138 | — | 9,002 | 45,140 | |||||||||
Change in fair value of derivative instruments | — | — | 611 | — | 611 | |||||||||
Redemption of common units | (8,881,575 | ) | (310,855 | ) | — | — | (310,855 | ) | ||||||
Balance at September 30, 2017 | 155,871,845 | $ | 3,654,332 | $ | 6,489 | $ | 302,111 | $ | 3,962,932 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | |||||||||||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | |||||||||||||||
Non-cash portion of interest expense | 1,591 | 1,658 | |||||||||||||||
Amortization of unit-based compensation | 5,150 | 4,338 | |||||||||||||||
Straight-line rents | (16,635) | (9,942) | |||||||||||||||
Straight-line rent expenses | 366 | 136 | |||||||||||||||
Amortization of above- and below-market leases, net | (4,179) | (3,811) | |||||||||||||||
Amortization of above- and below-market ground lease, net | 615 | 624 | |||||||||||||||
Amortization of lease incentive costs | 326 | 303 | |||||||||||||||
Other non-cash adjustments | — | 256 | |||||||||||||||
Impairment loss | 52,201 | — | |||||||||||||||
Gains on sale of real estate | — | (37,674) | |||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | (4,263) | (1,782) | |||||||||||||||
Deferred leasing costs and lease intangibles | (13,675) | (6,614) | |||||||||||||||
Prepaid expenses and other assets | 2,771 | 3,313 | |||||||||||||||
Accounts payable and accrued liabilities and other | 33,004 | (33) | |||||||||||||||
Security deposits and prepaid rent | 564 | 559 | |||||||||||||||
Net cash provided by operating activities | 89,446 | 64,447 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||
Additions to investment in real estate | (94,615) | (103,512) | |||||||||||||||
Maturities of U.S. Government securities | 1,932 | — | |||||||||||||||
Proceeds from sale of real estate | — | 237,004 | |||||||||||||||
Deposits for property acquisitions | (35,584) | — | |||||||||||||||
Net cash (used in) provided by investing activities | (128,267) | 133,492 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||
Proceeds from unsecured and secured debt | 430,001 | 130,000 | |||||||||||||||
Payments of unsecured and secured debt | (335,145) | (308,529) | |||||||||||||||
Payments of in-substance defeased debt | (806) | — | |||||||||||||||
Proceeds from issuance of common units, net | — | (173) | |||||||||||||||
Repurchase of common units in the operating partnership | (525) | — | |||||||||||||||
Dividends paid to common stock and unit-holders | (40,427) | (39,351) | |||||||||||||||
Dividends paid to preferred unit-holders | (153) | (159) | |||||||||||||||
Contribution of redeemable non-controlling member in consolidated real estate entities | 2,075 | — | |||||||||||||||
Contribution of non-controlling member in consolidated real estate entities | — | 2,691 | |||||||||||||||
Distribution to non-controlling member in consolidated real estate entities | (4,028) | (1,060) | |||||||||||||||
Payments to satisfy tax withholding | (3,668) | (693) | |||||||||||||||
Payment of loan costs | (10,623) | (6,965) | |||||||||||||||
Net cash provided by (used in) financing activities | 36,701 | (224,239) | |||||||||||||||
Net decrease in cash and cash equivalents and restricted cash | (2,120) | (26,300) | |||||||||||||||
Cash and cash equivalents and restricted cash—beginning of period | 68,191 | 101,280 | |||||||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | 66,071 | $ | 74,980 | |||||||||||||
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net income | $ | 45,617 | $ | 15,228 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 217,340 | 201,890 | |||||
Amortization of deferred financing costs and loan premium, net | 3,558 | 3,278 | |||||
Amortization of unit-based compensation | 11,237 | 9,931 | |||||
Straight-line rents | (15,174 | ) | (19,398 | ) | |||
Straight-line rent expenses | 296 | 886 | |||||
Amortization of above- and below-market leases, net | (14,326 | ) | (13,804 | ) | |||
Amortization of above- and below-market ground lease, net | 2,088 | 1,604 | |||||
Amortization of lease incentive costs | 1,140 | 1,017 | |||||
Other non-cash adjustments(1) | 598 | 682 | |||||
Gains on sale of real estate | (16,866 | ) | (8,515 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 1,649 | 12,521 | |||||
Deferred leasing costs and lease intangibles | (23,270 | ) | (34,610 | ) | |||
Prepaid expenses and other assets | (3,000 | ) | (5,008 | ) | |||
Accounts payable and accrued liabilities | 34,660 | 32,786 | |||||
Security deposits and prepaid rent | (5,943 | ) | 2,364 | ||||
Net cash provided by operating activities | 239,604 | 200,852 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Additions to investment property | (224,797 | ) | (183,286 | ) | |||
Property acquisitions | (257,734 | ) | (307,919 | ) | |||
Proceeds from sales of real estate | 81,707 | 283,855 | |||||
Contributions to unconsolidated entities | (1,071 | ) | (28,393 | ) | |||
Distributions from unconsolidated entities | 17,416 | — | |||||
Deposit for property acquisitions | — | (13,130 | ) | ||||
Proceed from repayment of notes receivable | — | 28,892 | |||||
Net cash used in investing activities | (384,479 | ) | (219,981 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from notes payable | 270,000 | 957,000 | |||||
Payments of notes payable | (321,892 | ) | (808,006 | ) | |||
Proceeds from issuance of common units, net | 647,524 | 880,514 | |||||
Payment for redemption of common units | (310,855 | ) | (876,213 | ) | |||
Distributions paid to common unitholders | (118,408 | ) | (88,469 | ) | |||
Distributions paid to preferred unitholders | (477 | ) | (477 | ) | |||
Contributions from non-controlling member in consolidated entities | 3,870 | 103 | |||||
Distributions to non-controlling member in consolidated entities | (15,369 | ) | (990 | ) | |||
Payments to satisfy tax withholding | (4,203 | ) | (1,776 | ) | |||
Payments of loan costs | — | (2,661 | ) | ||||
Net cash provided by financing activities | 150,190 | 59,025 | |||||
Net increase in cash and cash equivalents and restricted cash | 5,315 | 39,896 | |||||
Cash and cash equivalents and restricted cash—beginning of period | 108,192 | 71,561 | |||||
Cash and cash equivalents and restricted cash—end of period | $ | 113,507 | $ | 111,457 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid for interest including amounts capitalized | $ | 47,852 | $ | 53,474 | |||
NON-CASH INVESTING ACTIVITIES: | |||||||
Accounts payable and accrued liabilities for real estate investments | $ | (6,740 | ) | $ | (10,227 | ) | |
Reclassification of investment in unconsolidated entities for real estate investments | $ | 7,835 | $ | — |
Number of Properties | Square Feet (unaudited) | ||||
Office properties: | |||||
Northern California(1) | 29 | 9,600,289 | |||
Southern California(2) | 16 | 2,817,509 | |||
Pacific Northwest(3) | 8 | 1,496,620 | |||
Total Office properties | 53 | 13,914,418 | |||
Media & Entertainment properties: | |||||
Southern California(2) | 3 | 1,249,927 | |||
Total Media & Entertainment properties | 3 | 1,249,927 | |||
Total(4) | 56 | 15,164,345 |
Segments | Number of Properties | Square Feet (unaudited) | ||||||||||||||||||
Office | 52 | 13,866,793 | ||||||||||||||||||
Studio | 3 | 1,224,403 | ||||||||||||||||||
TOTAL(1) | 55 | 15,091,196 |
Property | Ownership | Interest | |||||||||||||
55.0 | % | ||||||||||||||
55.0 | % | ||||||||||||||
75.0 | % | ||||||||||||||
55.0 | % |
Revenue Stream | Components | Financial Statement Location(1) | ||||||||||||
Rental revenues | Office rentals, stage rentals and storage rentals | Office and studio segments: rental | ||||||||||||
Tenant recoveries and other tenant-related revenues | Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must take parking revenues | Office segment: rental Studio segment: rental and service revenue and other | ||||||||||||
Ancillary revenues | Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) | Studio segment: service revenue and other | ||||||||||||
Guest parking revenues | Parking revenue that is not associated with lease agreements | Office segment: service revenue Studio segment: service revenue and other | ||||||||||||
Sale of real estate | Gains on sales derived from cash consideration less cost basis | Gains on sale of real estate |
March 31, 2019 | March 31, 2018 | |||||||||||||
Ancillary revenues | $ | 8,086 | $ | 5,320 | ||||||||||
Guest parking revenues | $ | 6,447 | $ | 5,413 | ||||||||||
Studio related tenant recoveries(1) | $ | 275 | N/A |
March 31, 2019 | December 31, 2018 | |||||||||||||
Ancillary revenues | $ | 5,836 | $ | 3,752 | ||||||||||
Guest parking revenues | $ | 1,393 | $ | 959 | ||||||||||
Studio related tenant recoveries | $ | — | N/A |
Standard | Description | Effect on the Financial Statements or Other Significant Matters | ||||||||||||
ASU 2016-02, Leases (Topic 842) ASU 2019-01, Leases (Topic 842): Codification Improvements ASU 2018-11, Leases (Topic 842): Targeted Improvements ASU 2018-10, Codification Improvements to Topic 842, Leases ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 | Issued on February 5, 2016, ASU 2016-02 amends the accounting guidance for leases and sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). | The Company adopted ASC 842 during the first quarter of 2019 using the modified retrospective transition method with a cumulative adjustment to accumulated deficit. Refer to Lease Accounting section above for details. | ||||||||||||
ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate. | The Company adopted this guidance during the first quarter of 2019 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements since LIBOR is still in use, however, this is expected to have an impact in later periods once SOFR is adopted. | ||||||||||||
ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update also require certain disclosures about stranded tax effects. | The Company adopted this guidance during the first quarter of 2019 on a prospective basis. The adoption did not have an impact on the Consolidated Financial Statements. |
Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||||||||||||||||||
ASU | The FASB amended its standards on credit losses, hedging, and recognizing and measuring financial instruments to | Effective for | The Company is currently evaluating the impact of this | |||||||||||||||||||
March 31, 2019 | December 31, 2018 | ||||||||||
Land | $ | 1,313,411 | $ | 1,372,872 | |||||||
Building and improvements | 4,941,701 | 4,991,770 | |||||||||
Tenant improvements | 547,427 | 510,217 | |||||||||
Furniture and fixtures | 9,451 | 9,320 | |||||||||
Property under development | 178,430 | 175,358 | |||||||||
INVESTMENT IN REAL ESTATE, AT COST(1) | $ | 6,990,420 | $ | 7,059,537 |
September 30, 2017 | December 31, 2016 | ||||||
Land | $ | 1,369,320 | $ | 1,221,450 | |||
Building and improvements | 4,526,416 | 4,217,232 | |||||
Tenant improvements | 389,284 | 361,108 | |||||
Furniture and fixtures | 8,217 | 4,264 | |||||
Property under development | 265,661 | 295,239 | |||||
Investment in real estate, at cost(1) | $ | 6,558,898 | $ | 6,099,293 |
Property | Submarket | Segment | Date of Acquisition | Square Feet (unaudited) | Purchase Price(1) (in millions) | ||||||||
Sunset Las Palmas Studios(2) | Hollywood | Media and Entertainment | 5/1/2017 | 369,000 | $ | 200.0 | |||||||
11601 Wilshire land(3) | West Los Angeles | Office | 6/15/2017 | N/A | 50.0 | ||||||||
6666 Santa Monica(4) | Hollywood | Media and Entertainment | 6/29/2017 | 4,150 | 3.2 | ||||||||
Total acquisitions | 373,150 | $ | 253.2 |
Sunset Las Palmas Studios(1) | 11601 Wilshire land | 6666 Santa Monica | Total | ||||||||||||
Investment in real estate | $ | 202,723 | $ | 50,034 | $ | 3,091 | $ | 255,848 | |||||||
Deferred leasing costs and in-place lease intangibles(2) | 1,741 | — | 145 | 1,886 | |||||||||||
Total assets assumed | $ | 204,464 | $ | 50,034 | $ | 3,236 | $ | 257,734 |
Property | Date of Disposition | Square Feet (unaudited) | Sales Price(1) (in millions) | ||||||
222 Kearny Street | 2/14/2017 | 148,797 | $ | 51.8 | |||||
3402 Pico Boulevard | 3/21/2017 | 50,687 | 35.0 | ||||||
Total dispositions | 199,484 | $ | 86.8 |
September 30, 2017 | December 31, 2016 | |||||||
ASSETS | ||||||||
Investment in real estate, net | $ | 302,992 | $ | 371,422 | ||||
Accounts receivable, net | 11 | 357 | ||||||
Straight-line rent receivables, net | 5,220 | 5,949 | ||||||
Deferred leasing costs and lease intangible assets, net | 13,204 | 17,798 | ||||||
Prepaid expenses and other assets, net | 10 | 959 | ||||||
Assets associated with real estate held for sale | $ | 321,437 | $ | 396,485 | ||||
LIABILITIES | ||||||||
Notes payable, net | $ | 214,818 | $ | 214,687 | ||||
Accounts payable and accrued liabilities | 3,229 | 6,517 | ||||||
Lease intangible liabilities, net | 5,316 | 6,588 | ||||||
Security deposits and prepaid rent | 669 | 2,643 | ||||||
Liabilities associated with real estate held for sale | $ | 224,032 | $ | 230,435 |
March 31, 2019 | |||||||||||
ASSETS | |||||||||||
Investment in real estate, net | $ | 99,703 | |||||||||
Deferred leasing costs and lease intangible assets, net | 14 | ||||||||||
Prepaid expenses and other assets, net | 104 | ||||||||||
ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE | $ | 99,821 | |||||||||
LIABILITIES | |||||||||||
Accounts payable, accrued liabilities and other | $ | 732 | |||||||||
LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE | $ | 732 |
March 31, 2019 | December 31, 2018 | ||||||||||
Deferred leasing costs and in-place lease intangibles | $ | 340,634 | $ | 336,535 | |||||||
Accumulated amortization | (126,298) | (123,432) | |||||||||
Deferred leasing costs and in-place lease intangibles, net | 214,336 | 213,103 | |||||||||
Below-market ground leases | 72,916 | 72,916 | |||||||||
Accumulated amortization | (9,558) | (8,932) | |||||||||
Below-market ground leases, net | 63,358 | 63,984 | |||||||||
Above-market leases | 8,370 | 8,425 | |||||||||
Accumulated amortization | (5,871) | (5,616) | |||||||||
Above-market leases, net | 2,499 | 2,809 | |||||||||
DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET(1) | $ | 280,193 | $ | 279,896 | |||||||
Below-market leases | $ | 92,623 | $ | 101,736 | |||||||
Accumulated amortization | (52,419) | (57,043) | |||||||||
Below-market leases, net | 40,204 | 44,693 | |||||||||
Above-market ground leases | 1,095 | 1,095 | |||||||||
Accumulated amortization | (187) | (176) | |||||||||
Above-market ground leases, net | 908 | 919 | |||||||||
LEASE INTANGIBLE LIABILITIES, NET(1) | $ | 41,112 | $ | 45,612 |
September 30, 2017 | December 31, 2016 | ||||||
Above-market leases | $ | 19,622 | $ | 23,430 | |||
Accumulated amortization | (14,299 | ) | (12,989 | ) | |||
Above-market leases, net | 5,323 | 10,441 | |||||
Deferred leasing costs and in-place lease intangibles | 316,695 | 350,747 | |||||
Accumulated amortization | (128,598 | ) | (133,511 | ) | |||
Deferred leasing costs and in-place lease intangibles, net | 188,097 | 217,236 | |||||
Below-market ground leases | 71,210 | 71,423 | |||||
Accumulated amortization | (6,799 | ) | (4,891 | ) | |||
Below-market ground leases, net | 64,411 | 66,532 | |||||
Deferred leasing costs and lease intangible assets, net(1) | $ | 257,831 | $ | 294,209 | |||
Below-market leases | $ | 111,443 | $ | 128,817 | |||
Accumulated amortization | (57,081 | ) | (56,254 | ) | |||
Below-market leases, net | 54,362 | 72,563 | |||||
Above-market ground leases | 1,095 | 1,095 | |||||
Accumulated amortization | (122 | ) | (89 | ) | |||
Above-market ground leases, net | 973 | 1,006 | |||||
Lease intangible liabilities, net(1) | $ | 55,335 | $ | 73,569 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Above-market leases(1) | $ | 1,855 | $ | 2,809 | $ | 5,122 | $ | 10,223 | |||||||
Below-market leases(1) | 5,776 | 7,311 | 19,448 | 24,027 | |||||||||||
Deferred leasing costs and in-place lease intangibles(2) | 17,376 | 20,742 | 57,813 | 65,408 | |||||||||||
Above-market ground leases(3) | 11 | 11 | 33 | 33 | |||||||||||
Below-market ground leases(3) | 629 | 545 | 2,121 | 1,637 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Deferred leasing costs and in-place lease intangibles(1) | $ | (11,882) | $ | (11,696) | |||||||||||||
Below-market ground leases(2) | $ | (626) | $ | (635) | |||||||||||||
Above-market leases(3) | $ | (310) | $ | (474) | |||||||||||||
Below-market leases(3) | $ | 4,489 | $ | 4,285 | |||||||||||||
Above-market ground leases(2) | $ | 11 | $ | 11 |
September 30, 2017 | December 31, 2016 | ||||||
Accounts receivable | $ | 6,643 | $ | 8,660 | |||
Allowance for doubtful accounts | (1,629 | ) | (1,827 | ) | |||
Accounts receivable, net(1) | $ | 5,014 | $ | 6,833 |
September 30, 2017 | December 31, 2016 | ||||||
Straight-line rent receivables | $ | 97,191 | $ | 82,245 | |||
Allowance for doubtful accounts | (7 | ) | (136 | ) | |||
Straight-line rent receivables, net(1) | $ | 97,184 | $ | 82,109 |
March 31, 2019 | December 31, 2018 | ||||||||||
Derivative assets | $ | 10,463 | $ | 16,687 | |||||||
Goodwill | 8,754 | 8,754 | |||||||||
Non-real estate investments | 3,138 | 2,713 | |||||||||
Investment in unconsolidated joint venture | 86 | 86 | |||||||||
Other(1) | 60,000 | 27,393 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS, NET(2) | $ | 82,441 | $ | 55,633 |
September 30, 2017 | December 31, 2016 | ||||||
Investment in unconsolidated entities | $ | 14,093 | $ | 37,228 | |||
Goodwill | 8,754 | 8,754 | |||||
Derivative assets | 6,250 | 5,935 | |||||
Other | 28,263 | 27,141 | |||||
Prepaid expenses and other assets, net | $ | 57,360 | $ | 79,058 |
2.Excludes balances related to properties that |
September 30, 2017 | December 31, 2016 | Interest Rate(1) | Contractual Maturity Date | |||||||||
UNSECURED NOTES PAYABLE | ||||||||||||
Unsecured Revolving Credit Facility(2) | $ | 250,000 | $ | 300,000 | LIBOR + 1.15% to 1.85% | 4/1/2019 | (3) | |||||
5-Year Term Loan due April 2020(2)(4) | 450,000 | 450,000 | LIBOR + 1.30% to 2.20% | 4/1/2020 | ||||||||
5-Year Term Loan due November 2020(2) | 175,000 | 175,000 | LIBOR + 1.30% to 2.20% | 11/17/2020 | ||||||||
7-Year Term Loan due April 2022(2)(5) | 350,000 | 350,000 | LIBOR + 1.60% to 2.55% | 4/1/2022 | ||||||||
7-Year Term Loan due November 2022(2)(6) | 125,000 | 125,000 | LIBOR + 1.60% to 2.55% | 11/17/2022 | ||||||||
Series A Notes | 110,000 | 110,000 | 4.34% | 1/2/2023 | ||||||||
Series E Notes | 50,000 | 50,000 | 3.66% | 9/15/2023 | ||||||||
Series B Notes | 259,000 | 259,000 | 4.69% | 12/16/2025 | ||||||||
Series D Notes | 150,000 | 150,000 | 3.98% | 7/6/2026 | ||||||||
Series C Notes | 56,000 | 56,000 | 4.79% | 12/16/2027 | ||||||||
TOTAL UNSECURED NOTES PAYABLE | 1,975,000 | 2,025,000 | ||||||||||
SECURED NOTES PAYABLE | ||||||||||||
Rincon Center(7) | 98,896 | 100,409 | 5.13% | 5/1/2018 | ||||||||
Sunset Gower Studios/Sunset Bronson Studios | 5,001 | 5,001 | LIBOR + 2.25% | 3/4/2019 | (3) | |||||||
Met Park North(8) | 64,500 | 64,500 | LIBOR + 1.55% | 8/1/2020 | ||||||||
10950 Washington(7) | 27,549 | 27,929 | 5.32% | 3/11/2022 | ||||||||
Pinnacle I(9)(10) | 129,000 | 129,000 | 3.95% | 11/7/2022 | ||||||||
Element LA | 168,000 | 168,000 | 4.59% | 11/6/2025 | ||||||||
Pinnacle II(10) | 87,000 | 87,000 | 4.30% | 6/11/2026 | ||||||||
Hill7(11) | 101,000 | 101,000 | 3.38% | 11/6/2026 | ||||||||
TOTAL SECURED NOTES PAYABLE | 680,946 | 682,839 | ||||||||||
TOTAL NOTES PAYABLE | 2,655,946 | 2,707,839 | ||||||||||
Held for sale balances(10) | (216,000 | ) | (216,000 | ) | ||||||||
Deferred financing costs, net(12) | (15,588 | ) | (18,516 | ) | ||||||||
TOTAL NOTES PAYABLE, NET(13) | $ | 2,424,358 | $ | 2,473,323 |
March 31, 2019 | December 31, 2018 | Interest Rate(1) | Contractual Maturity Date | ||||||||||||||||||||||||||
UNSECURED AND SECURED DEBT | |||||||||||||||||||||||||||||
Unsecured debt | |||||||||||||||||||||||||||||
Unsecured revolving credit facility(2)(3) | $ | 220,000 | $ | 400,000 | LIBOR + 1.05% to 1.50% | 3/13/2022 | (4) | ||||||||||||||||||||||
Term loan A(2)(5) | 300,000 | 300,000 | LIBOR + 1.20% to 1.70% | 4/1/2020 | (6) | ||||||||||||||||||||||||
Term loan B(2)(7) | 350,000 | 350,000 | LIBOR + 1.20% to 1.70% | 4/1/2022 | |||||||||||||||||||||||||
Term loan D(2)(8) | 125,000 | 125,000 | LIBOR + 1.20% to 1.70% | 11/17/2022 | |||||||||||||||||||||||||
Series A notes | 110,000 | 110,000 | 4.34% | 1/2/2023 | |||||||||||||||||||||||||
Series E notes | 50,000 | 50,000 | 3.66% | 9/15/2023 | |||||||||||||||||||||||||
Series B notes | 259,000 | 259,000 | 4.69% | 12/16/2025 | |||||||||||||||||||||||||
Series D notes | 150,000 | 150,000 | 3.98% | 7/6/2026 | |||||||||||||||||||||||||
3.95% Registered senior notes | 400,000 | 400,000 | 3.95% | 11/1/2027 | |||||||||||||||||||||||||
Series C notes | 56,000 | 56,000 | 4.79% | 12/16/2027 | |||||||||||||||||||||||||
4.65% Registered senior notes(9) | 350,000 | — | 4.65% | 4/1/2029 | |||||||||||||||||||||||||
Term loan C | — | 75,000 | LIBOR + 1.30% to 2.20% | N/A | |||||||||||||||||||||||||
Total unsecured debt | 2,370,000 | 2,275,000 | |||||||||||||||||||||||||||
Secured debt | |||||||||||||||||||||||||||||
Met Park North(10) | 64,500 | 64,500 | LIBOR + 1.55% | 8/1/2020 | |||||||||||||||||||||||||
10950 Washington(11) | 26,736 | 26,880 | 5.32% | 3/11/2022 | |||||||||||||||||||||||||
Sunset Bronson Studios/ICON/CUE(12) | 5,001 | — | LIBOR + 1.35% | 3/1/2024 | |||||||||||||||||||||||||
Element LA | 168,000 | 168,000 | 4.59% | 11/6/2025 | |||||||||||||||||||||||||
Hill7(13) | 101,000 | 101,000 | 3.38% | 11/6/2028 | |||||||||||||||||||||||||
Sunset Gower Studios/Sunset Bronson Studios | — | 5,001 | LIBOR + 2.25% | N/A | |||||||||||||||||||||||||
Total secured debt | 365,237 | 365,381 | |||||||||||||||||||||||||||
Total unsecured and secured debt | 2,735,237 | 2,640,381 | |||||||||||||||||||||||||||
Unamortized deferred financing costs and loan discounts(14) | (23,605) | (16,546) | |||||||||||||||||||||||||||
TOTAL UNSECURED AND SECURED DEBT, NET | $ | 2,711,632 | $ | 2,623,835 | |||||||||||||||||||||||||
IN-SUBSTANCE DEFEASED DEBT(15) | $ | 137,417 | $ | 138,223 | 4.47% | 10/1/2022 | |||||||||||||||||||||||
JOINT VENTURE PARTNER DEBT(16) | $ | 66,136 | $ | 66,136 | 4.50% | 10/9/2028 | |||||||||||||||||||||||
Year | Annual Principal Payments | |||
Remaining 2017 | $ | 821 | ||
2018 | 101,157 | |||
2019 | 257,886 | |||
2020 | 692,493 | |||
2021 | 3,142 | |||
Thereafter | 1,600,447 | |||
Total(1) | $ | 2,655,946 |
Year | Unsecured and Secured Debt | In-substance Defeased Debt | Joint Venture Partner Debt | |||||||||||||||||
Remaining 2019 | $ | 424 | $ | 2,387 | $ | — | ||||||||||||||
2020 | 365,095 | 3,323 | — | |||||||||||||||||
2021 | 632 | 3,494 | — | |||||||||||||||||
2022 | 720,085 | 128,213 | — | |||||||||||||||||
2023 | 160,000 | — | — | |||||||||||||||||
Thereafter | 1,489,001 | — | 66,136 | |||||||||||||||||
TOTAL | $ | 2,735,237 | $ | 137,417 | $ | 66,136 |
September 30, 2017 | December 31, 2016 | ||||||
Outstanding borrowings | $ | 250,000 | $ | 300,000 | |||
Remaining borrowing capacity | 150,000 | 100,000 | |||||
Total borrowing capacity | $ | 400,000 | $ | 400,000 | |||
Interest rate(1) | LIBOR + 1.15% to 1.85% | ||||||
Facility fee-annual rate(1) | 0.20% or 0.35% | ||||||
Contractual maturity date(2) | 4/1/2019 |
March 31, 2019 | December 31, 2018 | ||||||||||||||||
Outstanding borrowings | $ | 220,000 | $ | 400,000 | |||||||||||||
Remaining borrowing capacity | 380,000 | 200,000 | |||||||||||||||
TOTAL BORROWING CAPACITY | $ | 600,000 | $ | 600,000 | |||||||||||||
Interest rate(1)(2) | LIBOR + 1.05% to 1.50% | ||||||||||||||||
Annual facility fee rate(1) | 0.15% or 0.30% | ||||||||||||||||
Contractual maturity date(3) | 3/13/2022 |
Covenant Ratio | Covenant Level | |||||||
Total liabilities to total asset value | ≤ 60% | |||||||
Unsecured indebtedness to unencumbered asset value | ≤ 60% | |||||||
Adjusted EBITDA to fixed charges | ≥ 1.5x | |||||||
Secured indebtedness to total asset value | ≤ 45% | |||||||
Unencumbered NOI to unsecured interest expense | ≥ 2.0x |
Covenant Ratio | Covenant Level | |||||||
Debt to total assets | ≤ 60% | |||||||
Total unencumbered assets to unsecured debt | ≥ 150% | |||||||
Consolidated income available for debt service to annual debt service charge | ≥ 1.5x | |||||||
Secured debt to total assets | ≤ 45% |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Gross interest expense(1) | $ | 24,107 | $ | 21,726 | $ | 70,345 | $ | 59,911 | Gross interest expense(1) | $ | 27,465 | $ | 22,431 | |||||||||||||||||||||||||||||||
Capitalized interest | (2,831 | ) | (2,960 | ) | (7,817 | ) | (8,414 | ) | Capitalized interest | (4,706) | (3,586) | |||||||||||||||||||||||||||||||||
Amortization of deferred financing costs and loan premium, net | 1,185 | 1,144 | 3,558 | 3,278 | ||||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 22,461 | $ | 19,910 | $ | 66,086 | $ | 54,775 | ||||||||||||||||||||||||||||||||||||
Amortization of deferred financing costs and loan discounts | Amortization of deferred financing costs and loan discounts | 1,591 | 1,658 | |||||||||||||||||||||||||||||||||||||||||
INTEREST EXPENSE | INTEREST EXPENSE | $ | 24,350 | $ | 20,503 |
1.Includes interest on |
September 30, 2017 | December 31, 2016 | ||||||
Security deposits | $ | 36,881 | $ | 31,064 | |||
Prepaid rent | 29,618 | 39,404 | |||||
Security deposits and prepaid rent(1) | $ | 66,499 | $ | 70,468 |
Interest Rate Range(1) | Fair Value Asset | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Underlying Debt Instrument | Number of Hedges | Notional Amount | Effective Date | Maturity Date | Low | High | March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Met Park North | 1 | $ | 64,500 | August 2013 | August 2020 | 3.71% | 3.71% | $ | 141 | $ | 350 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan A(2) | 2 | 300,000 | July 2016 | April 2020 | 2.65% | 3.06% | 2,813 | 4,038 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan B(2) | 2 | 350,000 | April 2015 | April 2022 | 2.96% | 3.46% | 4,264 | 7,543 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term loan D(2) | 1 | 125,000 | June 2016 | November 2022 | 2.63% | 3.13% | 3,245 | 4,756 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
TOTAL | 6 | $ | 839,500 | $ | 10,463 | $ | 16,687 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | ||||||||||
Due in 1 year | $ | 4,274 | $ | 4,281 | |||||||
Due in 1 year through 5 years | 140,718 | 143,632 | |||||||||
TOTAL | $ | 144,992 | $ | 147,913 |
Year Ended | Non-Cancellable | Subject to Early Termination Options | Total (1) | ||||||||||||||
Remaining 2019 | $ | 410,310 | $ | 2,728 | $ | 413,038 | |||||||||||
2020 | 530,493 | 14,245 | 544,738 | ||||||||||||||
2021 | 496,431 | 34,147 | 530,578 | ||||||||||||||
2022 | 453,315 | 39,098 | 492,413 | ||||||||||||||
2023 | 421,940 | 37,598 | 459,538 | ||||||||||||||
Thereafter | 2,052,986 | 86,069 | 2,139,055 | ||||||||||||||
TOTAL | $ | 4,365,475 | $ | 213,885 | $ | 4,579,360 |
Property | Expiration Date | Notes | ||||||||||||
3400 Hillview | 10/31/2040 | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. | ||||||||||||
Clocktower Square | 9/26/2056 | The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. | ||||||||||||
Del Amo | 6/30/2049 | Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. | ||||||||||||
Ferry Building | Various | The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. | ||||||||||||
Foothill Research Center | 6/30/2039 | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. | ||||||||||||
3176 Porter | 7/31/2040 | The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. The minimum annual rent cannot be less than a set amount. | ||||||||||||
Metro Center | 4/29/2054 | Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. | ||||||||||||
Page Mill Center | 11/30/2041 | The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. | ||||||||||||
Page Mill Hill | 11/17/2049 | The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. | ||||||||||||
Palo Alto Square | 11/30/2045 | The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. | ||||||||||||
Sunset Gower Studios | 3/31/2060 | Every 7 years rent adjusts to 7.5% of FMV of the land. | ||||||||||||
Techmart | 5/31/2053 | Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. This extension option was not included in the calculation of the right of use asset and lease liability. |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Contingent rental expense | $ | 2,514 | $ | 3,095 | |||||||||||||
Minimum rental expense | $ | 4,603 | $ | 3,337 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Contingent rental expense | $ | 2,191 | $ | 1,970 | $ | 6,025 | $ | 6,417 | |||||||
Minimum rental expense | 2,952 | 3,070 | 9,203 | 10,064 |
Year | Ground Leases (1) | Year | Lease Payments(1) | |||||||||
Remaining 2017 | $ | 3,359 | ||||||||||
2018 | 14,115 | |||||||||||
2019 | 14,165 | |||||||||||
Remaining 2019 | Remaining 2019 | $ | 13,808 | |||||||||
2020 | 14,165 | 2020 | 18,411 | |||||||||
2021 | 14,165 | 2021 | 18,411 | |||||||||
2022 | 2022 | 18,411 | ||||||||||
2023 | 2023 | 18,489 | ||||||||||
Thereafter | 396,307 | Thereafter | 501,924 | |||||||||
Total | $ | 456,276 | ||||||||||
TOTAL | TOTAL | $ | 589,454 |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Derivative assets | $ | — | $ | 6,250 | $ | — | $ | 6,250 | $ | — | $ | 5,935 | $ | — | $ | 5,935 | ||||||||||||||||
Derivative liabilities | — | 819 | — | 819 | — | 1,303 | — | 1,303 |
March 31, 2019 | December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets(1) | $ | — | $ | 10,463 | $ | — | $ | 10,463 | $ | — | $ | 16,687 | $ | — | $ | 16,687 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-real estate investments(1) | $ | — | $ | 3,138 | $ | — | $ | 3,138 | $ | — | $ | 2,713 | $ | — | $ | 2,713 |
September 30, 2017 | December 31, 2016 | |||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||
Unsecured notes payable(1) | $ | 1,975,000 | $ | 1,962,238 | 2,025,000 | $ | 2,011,210 | |||||||
Secured notes payable(1)(2) | 680,946 | 669,181 | 682,839 | 669,924 |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
U.S. Government securities | $ | 144,992 | $ | 147,913 | $ | 146,880 | $ | 147,686 | |||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||
Unsecured debt(1)(2) | $ | 2,364,728 | $ | 2,354,445 | $ | 2,274,352 | $ | 2,227,265 | |||||||||||||||||||||||||||
Secured debt(1) | $ | 365,237 | $ | 357,572 | $ | 365,381 | $ | 354,109 | |||||||||||||||||||||||||||
In-substance defeased debt | $ | 137,417 | $ | 136,287 | $ | 138,223 | $ | 135,894 | |||||||||||||||||||||||||||
Joint venture partner debt | $ | 66,136 | $ | 68,259 | $ | 66,136 | $ | 66,136 |
Assumption | |||||
Expected price volatility for the Company | |||||
Expected price volatility for the particular REIT index | |||||
Risk-free rate | |||||
Dividend yield |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Expensed stock compensation(1) | $ | 3,449 | $ | 3,288 | $ | 11,237 | $ | 9,931 | Expensed stock compensation(1) | $ | 5,150 | $ | 4,338 | |||||||||||||||||||||||||||||||
Capitalized stock compensation(2) | 217 | 112 | 635 | 300 | Capitalized stock compensation(2) | 29 | 232 | |||||||||||||||||||||||||||||||||||||
Total stock compensation(3) | $ | 3,666 | $ | 3,400 | $ | 11,872 | $ | 10,231 | ||||||||||||||||||||||||||||||||||||
TOTAL STOCK COMPENSATION(3) | TOTAL STOCK COMPENSATION(3) | $ | 5,179 | $ | 4,570 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted net income available to Hudson Pacific Properties, Inc. common stockholders | $ | 11,064 | $ | 1,847 | $ | 35,132 | $ | 4,939 | ||||||||||||||||||||||||||||||||||||
Basic and diluted net (loss) income available to common stockholders | Basic and diluted net (loss) income available to common stockholders | $ | (39,392) | $ | 48,577 | |||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | |||||||||||||||||||||||||||||||||||||||||||
Basic weighted average common shares outstanding | 155,302,800 | 115,083,622 | 152,874,952 | 99,862,583 | Basic weighted average common shares outstanding | 154,396,159 | 155,626,055 | |||||||||||||||||||||||||||||||||||||
Effect of dilutive instruments(1) | 790,936 | 1,179,000 | 773,936 | 1,117,000 | Effect of dilutive instruments(1) | — | 1,088,767 | |||||||||||||||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 156,093,736 | 116,262,622 | 153,648,888 | 100,979,583 | ||||||||||||||||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | ||||||||||||||||||||||||||||||||||||
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 154,396,159 | 156,714,822 | |||||||||||||||||||||||||||||||||||||||||
Basic (loss) earnings per common share | Basic (loss) earnings per common share | $ | (0.26) | $ | 0.31 | |||||||||||||||||||||||||||||||||||||||
Diluted (loss) earnings per common share | Diluted (loss) earnings per common share | $ | (0.26) | $ | 0.31 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | |||||||||||||||||||||||||||||||||||||||||||
Basic and diluted net income available to Hudson Pacific Properties, L.P. common unitholders | $ | 11,105 | $ | 2,337 | $ | 35,388 | $ | 7,296 | ||||||||||||||||||||||||||||||||||||
Basic and diluted net (loss) income available to common unitholders | Basic and diluted net (loss) income available to common unitholders | $ | (39,577) | $ | 48,754 | |||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | |||||||||||||||||||||||||||||||||||||||||||
Basic weighted average common units outstanding | 155,871,845 | 145,614,312 | 153,736,796 | 145,550,685 | Basic weighted average common units outstanding | 155,120,144 | 156,195,100 | |||||||||||||||||||||||||||||||||||||
Effect of dilutive instruments(1) | 790,936 | 1,179,000 | 773,936 | 1,117,000 | Effect of dilutive instruments(1) | — | 1,088,767 | |||||||||||||||||||||||||||||||||||||
Diluted weighted average common units outstanding | 156,662,781 | 146,793,312 | 154,510,732 | 146,667,685 | ||||||||||||||||||||||||||||||||||||||||
Basic earnings per common unit | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | ||||||||||||||||||||||||||||||||||||
Diluted earnings per common unit | $ | 0.07 | $ | 0.02 | $ | 0.23 | $ | 0.05 | ||||||||||||||||||||||||||||||||||||
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING | DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING | 155,120,144 | 157,283,867 | |||||||||||||||||||||||||||||||||||||||||
Basic (loss) earnings per common unit | Basic (loss) earnings per common unit | $ | (0.26) | $ | 0.31 | |||||||||||||||||||||||||||||||||||||||
Diluted (loss) earnings per common unit | Diluted (loss) earnings per common unit | $ | (0.26) | $ | 0.31 |
Series A Redeemable Preferred Units | Consolidated Entities | |||||||||||||
Balance at December 31, 2018 | $ | 9,815 | $ | 113,141 | ||||||||||
Contributions | — | 2,075 | ||||||||||||
Declared dividend | (153) | — | ||||||||||||
Net income (loss) | 153 | (600) | ||||||||||||
BALANCE AT MARCH 31, 2019 | $ | 9,815 | $ | 114,616 |
Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling Interest—Units in the Operating Partnership | Total Equity | ||||||||||
Balance at January 1, 2017 | $ | 9,496 | $ | (3,618 | ) | $ | 5,878 | |||||
Unrealized loss recognized in OCI due to change in fair value | (3,095 | ) | (4 | ) | (3,099 | ) | ||||||
Loss reclassified from OCI into income (as interest expense) | 3,686 | 24 | 3,710 | |||||||||
Net change in OCI related to derivative instruments | 591 | 20 | 611 | |||||||||
Reclassification related to redemption of common units in the operating partnership | (3,622 | ) | 3,622 | — | ||||||||
Balance at September 30, 2017 | $ | 6,465 | $ | 24 | $ | 6,489 |
Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2018 | $ | 17,501 | $ | 64 | $ | 17,565 | ||||||||||||||
Unrealized loss recognized in OCI due to change in fair value | (5,926) | (28) | (5,954) | |||||||||||||||||
Gain reclassified from OCI into income (as interest expense)(1) | (1,901) | (9) | (1,910) | |||||||||||||||||
Net change in OCI | (7,827) | (37) | (7,864) | |||||||||||||||||
BALANCE AT MARCH 31, 2019 | $ | 9,674 | $ | 27 | $ | 9,701 |
September 30, 2017 | December 31, 2016 | ||||
Company-owned common units in the operating partnership | 155,302,800 | 136,492,235 | |||
Company’s ownership interest percentage | 99.6 | % | 93.5 | % | |
Non-controlling common units in the operating partnership(1) | 569,045 | 9,450,620 | |||
Non-controlling ownership interest percentage(1) | 0.4 | % | 6.5 | % |
March 31, 2019 | December 31, 2018 | ||||||||||
Company-owned common units in the operating partnership | 154,373,581 | 154,371,538 | |||||||||
Company’s ownership interest percentage | 99.5 | % | 99.6 | % | |||||||
Non-controlling units in the operating partnership(1) | 720,773 | 569,045 | |||||||||
Non-controlling ownership interest percentage(1) | 0.5 | % | 0.4 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Common stock(1) | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||||||
Common units(1) | $ | 0.25 | $ | 0.25 | |||||||||||||||||||||||||
Series A preferred units(1) | $ | 0.3906 | $ | 0.3906 | |||||||||||||||||||||||||
Performance units | $ | 0.25 | $ | 0.25 |
Three Months Ended March 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Office segment | |||||||||||||||||||||||
Office revenues | $ | 175,858 | $ | 156,532 | |||||||||||||||||||
Office expenses | (60,815) | (53,240) | |||||||||||||||||||||
Office segment profit | 115,043 | 103,292 | |||||||||||||||||||||
Studio segment | |||||||||||||||||||||||
Studio revenues | 21,531 | 17,586 | |||||||||||||||||||||
Studio expenses | (11,109) | (9,664) | |||||||||||||||||||||
Studio segment profit | 10,422 | 7,922 | |||||||||||||||||||||
TOTAL SEGMENT PROFIT | $ | 125,465 | $ | 111,214 | |||||||||||||||||||
Segment revenues | $ | 197,389 | $ | 174,118 | |||||||||||||||||||
Segment expenses | (71,924) | (62,904) | |||||||||||||||||||||
TOTAL SEGMENT PROFIT | $ | 125,465 | $ | 111,214 |
Three Months Ended March 31, | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Total profit from all segments | $ | 125,465 | $ | 111,214 | |||||||||||||||||||
General and administrative | (18,094) | (15,564) | |||||||||||||||||||||
Depreciation and amortization | (68,505) | (60,553) | |||||||||||||||||||||
Interest expense | (24,350) | (20,503) | |||||||||||||||||||||
Interest income | 1,024 | 9 | |||||||||||||||||||||
Transaction-related expenses | (128) | (118) | |||||||||||||||||||||
Other (loss) income | (106) | 404 | |||||||||||||||||||||
Gains on sale of real estate | — | 37,674 | |||||||||||||||||||||
Impairment loss | (52,201) | — | |||||||||||||||||||||
NET (LOSS) INCOME | $ | (36,895) | $ | 52,563 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Cash paid for interest, net of capitalized interest | $ | 13,543 | $ | 12,915 | |||||||||||||
Non-cash investing and financing activities | |||||||||||||||||
Accounts payable and accrued liabilities for real estate investments | (813) | 20,462 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Beginning of period: | |||||||||||||||||
Cash and cash equivalents | $ | 53,740 | $ | 78,922 | |||||||||||||
Restricted cash | 14,451 | 22,358 | |||||||||||||||
TOTAL | $ | 68,191 | $ | 101,280 | |||||||||||||
End of period: | |||||||||||||||||
Cash and cash equivalents | $ | 52,445 | $ | 64,080 | |||||||||||||
Restricted cash | 13,626 | 10,900 | |||||||||||||||
TOTAL | $ | 66,071 | $ | 74,980 |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Beginning of period: | |||||||
Cash and cash equivalents | $ | 83,015 | $ | 53,551 | |||
Restricted cash | 25,177 | 18,010 | |||||
Total | $ | 108,192 | $ | 71,561 | |||
End of period: | |||||||
Cash and cash equivalents | $ | 87,723 | $ | 89,354 | |||
Restricted cash | 25,784 | 22,103 | |||||
Total | $ | 113,507 | $ | 111,457 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
In-Service Portfolio | Number of Buildings | Rentable Square Feet(1) | Percent Occupied(2) | Percent Leased(3) | Annualized Base Rent per Square Foot(4) | |||||||||||||||||||||||||||
Office | ||||||||||||||||||||||||||||||||
Same-store(5) | 31 | 7,842,466 | 94.1 | % | 94.9 | % | $ | 48.61 | ||||||||||||||||||||||||
Stabilized non-same store(6) | 9 | 2,590,210 | 95.4 | % | 96.2 | % | $ | 51.94 | ||||||||||||||||||||||||
Total stabilized | 40 | 10,432,676 | 94.4 | % | 95.2 | % | $ | 49.45 | ||||||||||||||||||||||||
Lease-up(6)(7) | 7 | 1,871,220 | 69.9 | % | 80.4 | % | $ | 49.78 | ||||||||||||||||||||||||
Total in-service | 47 | 12,303,896 | 90.7 | % | 92.9 | % | $ | 49.49 | ||||||||||||||||||||||||
Redevelopment(6) | 2 | 683,090 | ||||||||||||||||||||||||||||||
Development(6) | 2 | 408,227 | ||||||||||||||||||||||||||||||
Held for sale(6) | 1 | 471,580 | ||||||||||||||||||||||||||||||
Total office | 52 | 13,866,793 | ||||||||||||||||||||||||||||||
Studio | ||||||||||||||||||||||||||||||||
Same-store(8) | 3 | 1,171,707 | 92.4 | % | $ | 38.89 | ||||||||||||||||||||||||||
Non-same-store(6) | — | 52,696 | (9) | 100.0 | % | $ | 40.70 | |||||||||||||||||||||||||
Total studio | 3 | 1,224,403 | ||||||||||||||||||||||||||||||
Land | — | 2,639,562 | (10) | |||||||||||||||||||||||||||||
TOTAL | 55 | 17,730,758 |
Location | Submarket | Estimated Square Feet(1) | Estimated Completion Date | Estimated Stabilization Date | ||||||||||||||||||||||||||||
Redevelopment: | ||||||||||||||||||||||||||||||||
Maxwell | Downtown Los Angeles | 99,090 | Q1-2019 | Q4-2019 | ||||||||||||||||||||||||||||
One Westside | West Los Angeles | 584,000 | TBD | TBD | ||||||||||||||||||||||||||||
Total redevelopment | 683,090 | |||||||||||||||||||||||||||||||
Development: | ||||||||||||||||||||||||||||||||
EPIC | Hollywood | 302,102 | Q4-2019 | Q3-2021 | ||||||||||||||||||||||||||||
Harlow | Hollywood | 106,125 | Q1-2020 | Q3-2021 | ||||||||||||||||||||||||||||
Total development | 408,227 | |||||||||||||||||||||||||||||||
TOTAL REDEVELOPMENT AND DEVELOPMENT | 1,091,317 | |||||||||||||||||||||||||||||||
Future Development: | ||||||||||||||||||||||||||||||||
Element LA—Development | West Los Angeles | 500,000 | TBD | TBD | ||||||||||||||||||||||||||||
Sunset Bronson Studios Lot D—Development | Hollywood | 19,816 | TBD | TBD | ||||||||||||||||||||||||||||
Sunset Gower Studios—Development | Hollywood | 423,396 | TBD | TBD | ||||||||||||||||||||||||||||
Sunset Las Palmas Studios—Development | Hollywood | 400,000 | TBD | TBD | ||||||||||||||||||||||||||||
Cloud10 | North San Jose | 350,000 | TBD | TBD | ||||||||||||||||||||||||||||
TOTAL FUTURE DEVELOPMENT | 1,693,212 |
Year of Lease Expiration | Expiring Leases | Square Footage of Expiring Leases | Percentage of Office Portfolio Square Feet | Annualized Base Rent(1) | Percentage of Office Portfolio Annualized Base Rent | Annualized Base Rent Per Leased Square Foot(2) | ||||||||||||||||||||||||||||||||
Vacant | N/A | 1,446,701 | 10.5 | % | N/A | N/A | N/A | |||||||||||||||||||||||||||||||
2019(3) | 128 | 894,971 | 6.5 | $ | 43,808,363 | 7.1 | % | $ | 48.95 | |||||||||||||||||||||||||||||
2020 | 145 | 938,298 | 6.8 | 47,353,172 | 7.6 | 50.47 | ||||||||||||||||||||||||||||||||
2021 | 130 | 1,244,058 | 9.0 | 56,442,039 | 9.0 | 45.37 | ||||||||||||||||||||||||||||||||
2022 | 117 | 1,183,158 | 8.6 | 55,768,863 | 8.9 | 47.14 | ||||||||||||||||||||||||||||||||
2023 | 82 | 1,526,551 | 11.0 | 67,981,672 | 10.9 | 44.53 | ||||||||||||||||||||||||||||||||
2024 | 88 | 1,455,604 | 10.5 | 72,366,297 | 11.6 | 49.72 | ||||||||||||||||||||||||||||||||
2025 | 30 | 1,081,971 | 7.8 | 56,296,162 | 9.0 | 52.03 | ||||||||||||||||||||||||||||||||
2026 | 17 | 326,691 | 2.4 | 17,688,631 | 2.8 | 54.14 | ||||||||||||||||||||||||||||||||
2027 | 15 | 405,078 | 2.9 | 21,596,067 | 3.5 | 53.31 | ||||||||||||||||||||||||||||||||
2028 | 17 | 555,792 | 4.0 | 34,527,781 | 5.5 | 62.12 | ||||||||||||||||||||||||||||||||
Thereafter�� | 26 | 1,408,629 | 10.2 | 78,675,514 | 12.6 | 55.85 | ||||||||||||||||||||||||||||||||
Building management use | 21 | 146,361 | 1.1 | — | — | — | ||||||||||||||||||||||||||||||||
Signed leases not commenced(4) | 23 | 1,205,757 | 8.7 | 71,611,797 | 11.5 | 59.39 | ||||||||||||||||||||||||||||||||
TOTAL/WEIGHTED AVERAGE(5) | 839 | 13,819,620 | 100.0 | % | $ | 624,116,358 | 100.0 | % | $ | 50.44 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||||||
Renewals(1) | ||||||||||||||||||||||||||||||||
Number of leases | 16 | 19 | ||||||||||||||||||||||||||||||
Square feet | 97,123 | 302,401 | ||||||||||||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 8.26 | $ | 44.31 | ||||||||||||||||||||||||||||
Leasing commission costs per square foot(2) | 7.92 | 14.12 | ||||||||||||||||||||||||||||||
Total tenant improvement and leasing commission costs(2) | $ | 16.18 | $ | 58.43 | ||||||||||||||||||||||||||||
New leases(4) | ||||||||||||||||||||||||||||||||
Number of leases | 29 | 36 | ||||||||||||||||||||||||||||||
Square feet | 947,013 | 253,855 | ||||||||||||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 92.57 | $ | 46.95 | ||||||||||||||||||||||||||||
Leasing commission costs per square foot(2) | 33.58 | 14.53 | ||||||||||||||||||||||||||||||
Total tenant improvement and leasing commission costs(2) | $ | 126.15 | $ | 61.48 | ||||||||||||||||||||||||||||
TOTAL | ||||||||||||||||||||||||||||||||
Number of leases | 45 | 55 | ||||||||||||||||||||||||||||||
Square feet | 1,044,136 | 556,256 | ||||||||||||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 84.73 | $ | 45.52 | ||||||||||||||||||||||||||||
Leasing commission costs per square foot(2) | 31.19 | 14.30 | ||||||||||||||||||||||||||||||
TOTAL TENANT IMPROVEMENT AND LEASING COMMISSION COSTS(2) | $ | 115.92 | $ | 59.82 |
Properties | Acquisition Date | Acquisition/Estimated Rentable Square Feet | Consideration Paid (in thousands) | ||||||
Predecessor properties: | |||||||||
875 Howard Street | 2/15/2007 | 286,270 | $ | — | |||||
Sunset Gower Studios | 8/17/2007 | 545,673 | — | ||||||
Sunset Bronson Studios | 1/30/2008 | 308,026 | — | ||||||
Technicolor Building(1) | 6/1/2008 | 114,958 | — | ||||||
Properties acquired after IPO: | |||||||||
Del Amo Office | 8/13/2010 | 113,000 | 27,327 | ||||||
9300 Wilshire | 8/24/2010 | 61,224 | 14,684 | ||||||
1455 Market Street(2) | 12/16/2010 | 1,025,833 | 92,365 | ||||||
Rincon Center | 12/16/2010 | 580,850 | 184,571 | ||||||
10950 Washington | 12/22/2010 | 159,024 | 46,409 | ||||||
604 Arizona | 7/26/2011 | 44,260 | 21,373 | ||||||
275 Brannan Street | 8/19/2011 | 54,673 | 12,370 | ||||||
625 Second Street | 9/1/2011 | 138,080 | 57,119 | ||||||
6922 Hollywood | 11/22/2011 | 205,523 | 92,802 | ||||||
6050 Sunset Blvd. & 1445 N. Beachwood Drive | 12/16/2011 | 20,032 | 6,502 | ||||||
10900 Washington | 4/5/2012 | 9,919 | 2,605 | ||||||
901 Market Street | 6/1/2012 | 206,199 | 90,871 | ||||||
Element LA (includes 1861 Bundy) | 9/5/2012 & 9/26/2013 | 284,037 | 99,936 | ||||||
1455 Gordon Street | 9/21/2012 | 5,921 | 2,385 | ||||||
Pinnacle I(3) | 11/8/2012 | 393,777 | 209,504 | ||||||
3401 Exposition | 5/22/2013 | 63,376 | 25,722 | ||||||
Pinnacle II(3) | 6/14/2013 | 230,000 | 136,275 | ||||||
Seattle Portfolio (83 King Street, 505 First Avenue, Met Park North and Northview Center) | 7/31/2013 | 844,980 | 368,389 | ||||||
Merrill Place | 2/12/2014 | 193,153 | 57,034 | ||||||
EOP Northern California Portfolio (see table on next page for property list) | 4/1/2015 | 7,120,686 | 3,489,541 | ||||||
4th & Traction(4) | 5/22/2015 | 120,937 | 49,250 | ||||||
MaxWell (formerly known as 405 Mateo)(5) | 8/17/2015 | 83,285 | 40,000 | ||||||
11601 Wilshire(6) | 7/1/2016 & 6/15/2017 | 500,475 | 361,000 | ||||||
Hill7(7) | 10/7/2016 | 285,680 | 179,800 | ||||||
Page Mill Hill | 12/12/2016 | 182,676 | 150,000 | ||||||
Sunset Las Palmas Studios (includes 6666 Santa Monica) | 5/1/2017 & 6/29/2017 | 373,150 | 203,200 | ||||||
Development properties(8): | |||||||||
ICON(9) | N/A | 325,757 | N/A | ||||||
CUE(10) | N/A | 91,953 | N/A | ||||||
450 Alaskan Way(11) | N/A | 170,974 | N/A | ||||||
95 Jackson(12) | N/A | 31,659 | N/A | ||||||
EPIC(13) | N/A | 300,000 | N/A | ||||||
Total | 15,476,020 | $ | 6,021,034 |
Properties | Disposition Date | Square Feet | Sales Price(1) (in millions) | ||||||
City Plaza | 7/12/2013 | 333,922 | $ | 56.0 | |||||
Tierrasanta | 7/16/2014 | 112,300 | 19.5 | ||||||
First Financial | 3/6/2015 | 223,679 | 89.0 | ||||||
Bay Park Plaza | 9/29/2015 | 260,183 | 90.0 | ||||||
Bayhill Office Center | 1/14/2016 | 554,328 | 215.0 | ||||||
Patrick Henry Drive | 4/7/2016 | 70,520 | 19.0 | ||||||
One Bay Plaza | 6/1/2016 | 195,739 | 53.4 | ||||||
12655 Jefferson | 11/4/2016 | 100,756 | 80.0 | ||||||
222 Kearny Street | 2/14/2017 | 148,797 | 51.8 | ||||||
3402 Pico Boulevard | 3/21/2017 | 50,687 | 35.0 | ||||||
Total(2)(3) | 2,050,911 | $ | 708.7 |
Three Months Ended March 31, | Dollar Change | Percent Change | |||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | $ | (89,458) | (170.2) | % | |||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest expense | 24,350 | 20,503 | 3,847 | 18.8 | |||||||||||||||||||||||||
Interest income | (1,024) | (9) | (1,015) | 11,277.8 | |||||||||||||||||||||||||
Transaction-related expenses | 128 | 118 | 10 | 8.5 | |||||||||||||||||||||||||
Other expense (income) | 106 | (404) | 510 | (126.2) | |||||||||||||||||||||||||
Gains on sale of real estate | — | (37,674) | 37,674 | (100.0) | |||||||||||||||||||||||||
Impairment loss | 52,201 | — | 52,201 | 100.0 | |||||||||||||||||||||||||
General and administrative | 18,094 | 15,564 | 2,530 | 16.3 | |||||||||||||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | 7,952 | 13.1 | |||||||||||||||||||||||||
NOI | $ | 125,465 | $ | 111,214 | $ | 14,251 | 12.8 | % | |||||||||||||||||||||
Same-store NOI | $ | 89,061 | $ | 81,707 | $ | 7,354 | 9.0 | % | |||||||||||||||||||||
Non-same-store NOI | 36,404 | 29,507 | 6,897 | 23.4 | |||||||||||||||||||||||||
NOI | $ | 125,465 | $ | 111,214 | $ | 14,251 | 12.8 | % |
Three Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percent Change | |||||||||||
Net income | $ | 14,510 | $ | 5,217 | $ | 9,293 | 178.1 | % | ||||||
Adjustments: | ||||||||||||||
Interest expense | 22,461 | 19,910 | 2,551 | 12.8 | ||||||||||
Interest income | (44 | ) | (130 | ) | 86 | (66.2 | ) | |||||||
Unrealized loss (gain) on ineffective portion of derivative instruments | 37 | (879 | ) | 916 | (104.2 | ) | ||||||||
Transaction-related expenses | 598 | 315 | 283 | 89.8 | ||||||||||
Other income | (1,402 | ) | (693 | ) | (709 | ) | 102.3 | |||||||
Income from operations | 36,160 | 23,740 | 12,420 | 52.3 | ||||||||||
Adjustments: | ||||||||||||||
General and administrative | 13,013 | 12,955 | 58 | 0.4 | ||||||||||
Depreciation and amortization | 71,158 | 67,414 | 3,744 | 5.6 | ||||||||||
NOI | $ | 120,331 | $ | 104,109 | $ | 16,222 | 15.6 | % | ||||||
Same-Store NOI | $ | 77,257 | $ | 72,964 | $ | 4,293 | 5.9 | % | ||||||
Non-Same-Store NOI | 43,074 | 31,145 | 11,929 | 38.3 | ||||||||||
NOI | $ | 120,331 | $ | 104,109 | $ | 16,222 | 15.6 | % |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Revenues | |||||||||||||||||
Office | |||||||||||||||||
Rental | $ | 170,197 | $ | 130,082 | |||||||||||||
Tenant recoveries | — | 20,904 | |||||||||||||||
Service revenues | 5,661 | 5,546 | |||||||||||||||
Total office revenues | 175,858 | 156,532 | |||||||||||||||
Studio | |||||||||||||||||
Rental | 12,394 | 10,383 | |||||||||||||||
Tenant recoveries | — | 354 | |||||||||||||||
Service revenues and other | 9,137 | 6,849 | |||||||||||||||
Total studio revenues | 21,531 | 17,586 | |||||||||||||||
TOTAL REVENUES | $ | 197,389 | $ | 174,118 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Revenues | |||||||||||||||||
Office | |||||||||||||||||
Rental | $ | 145,460 | $ | 130,082 | |||||||||||||
Tenant recoveries | 24,737 | 20,904 | |||||||||||||||
Service revenues | 5,661 | 5,546 | |||||||||||||||
Total office revenues | 175,858 | 156,532 | |||||||||||||||
Studio | |||||||||||||||||
Rental | 11,930 | 10,383 | |||||||||||||||
Tenant recoveries | 464 | 354 | |||||||||||||||
Service revenues and other | 9,137 | 6,849 | |||||||||||||||
Total studio revenues | 21,531 | 17,586 | |||||||||||||||
TOTAL REVENUES | $ | 197,389 | $ | 174,118 |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Same-store office | |||||||||||||||||
Number of properties | 31 | 31 | |||||||||||||||
Rentable square feet | 7,842,466 | 7,842,466 | |||||||||||||||
Ending % leased | 94.9 | % | 94.3 | % | |||||||||||||
Ending % occupied | 94.1 | % | 93.2 | % | |||||||||||||
Average % occupied for the period | 93.0 | % | 92.8 | % | |||||||||||||
Average annual rental rate per square foot | $ | 48.61 | $ | 45.77 | |||||||||||||
Same-store studio | |||||||||||||||||
Number of properties | 3 | 3 | |||||||||||||||
Rentable square feet | 1,171,707 | 1,171,707 | |||||||||||||||
Average % occupied for the period(1) | 92.4 | % | N/A |
Three Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Same-Store Office statistics: | |||||||
Number of properties | 32 | 32 | |||||
Rentable square feet | 7,901,375 | 7,901,375 | |||||
Ending % leased | 95.9 | % | 95.6 | % | |||
Ending % occupied | 92.8 | % | 94.6 | % | |||
Average % occupied for the period | 93.3 | % | 92.7 | % | |||
Average annual rental rate per square foot | $ | 42.13 | $ | 39.50 | |||
Same-Store Media and Entertainment statistics: | |||||||
Number of properties | 2 | 2 | |||||
Rentable square feet | 873,002 | 873,002 | |||||
Average % occupied for the period | 90.6 | % | 87.4 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same-Store | Non-Same-Store | Total | Same-Store | Non-Same-Store | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental | $ | 93,020 | $ | 52,440 | $ | 145,460 | $ | 86,675 | $ | 43,407 | $ | 130,082 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant recoveries | 17,344 | 7,393 | 24,737 | 16,445 | 4,459 | 20,904 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | 4,166 | 1,495 | 5,661 | 4,104 | 1,442 | 5,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total office revenues | 114,530 | 61,328 | 175,858 | 107,224 | 49,308 | 156,532 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental | 11,417 | 513 | 11,930 | 10,383 | — | 10,383 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant recoveries | 146 | 318 | 464 | 354 | — | 354 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues and other | 9,348 | (211) | 9,137 | 6,849 | — | 6,849 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total studio revenues | 20,911 | 620 | 21,531 | 17,586 | — | 17,586 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 135,441 | 61,948 | 197,389 | 124,810 | 49,308 | 174,118 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office operating expenses | 35,397 | 25,418 | 60,815 | 33,439 | 19,801 | 53,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio operating expenses | 10,983 | 126 | 11,109 | 9,664 | — | 9,664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 46,380 | 25,544 | 71,924 | 43,103 | 19,801 | 62,904 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office NOI | 79,133 | 35,910 | 115,043 | 73,785 | 29,507 | 103,292 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio NOI | 9,928 | 494 | 10,422 | 7,922 | — | 7,922 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI | $ | 89,061 | $ | 36,404 | $ | 125,465 | $ | 81,707 | $ | 29,507 | $ | 111,214 |
Three Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
Same-Store | Non-Same-Store | Total | Same-Store | Non-Same-Store | Total | ||||||||||||||
Revenues | |||||||||||||||||||
Office | |||||||||||||||||||
Rental | $ | 81,705 | $ | 57,452 | $ | 139,157 | $ | 78,137 | $ | 45,782 | $ | 123,919 | |||||||
Tenant recoveries | 17,809 | 7,173 | 24,982 | 17,412 | 5,245 | 22,657 | |||||||||||||
Parking and other | 5,120 | 2,915 | 8,035 | 3,241 | 2,280 | 5,521 | |||||||||||||
Total Office revenues | 104,634 | 67,540 | 172,174 | 98,790 | 53,307 | 152,097 | |||||||||||||
Media & Entertainment | |||||||||||||||||||
Rental | 8,220 | 2,792 | 11,012 | 7,102 | — | 7,102 | |||||||||||||
Tenant recoveries | 65 | 68 | 133 | 243 | — | 243 | |||||||||||||
Other property-related revenue | 5,048 | 1,513 | 6,561 | 5,005 | — | 5,005 | |||||||||||||
Other | 137 | 4 | 141 | 136 | — | 136 | |||||||||||||
Total Media & Entertainment revenues | 13,470 | 4,377 | 17,847 | 12,486 | — | 12,486 | |||||||||||||
Total revenues | 118,104 | 71,917 | 190,021 | 111,276 | 53,307 | 164,583 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Office operating expenses | 33,513 | 25,589 | 59,102 | 31,813 | 22,162 | 53,975 | |||||||||||||
Media & Entertainment operating expenses | 7,334 | 3,254 | 10,588 | 6,499 | — | 6,499 | |||||||||||||
Total operating expenses | 40,847 | 28,843 | 69,690 | 38,312 | 22,162 | 60,474 | |||||||||||||
Office NOI | 71,121 | 41,951 | 113,072 | 66,977 | 31,145 | 98,122 | |||||||||||||
Media & Entertainment NOI | 6,136 | 1,123 | 7,259 | 5,987 | — | 5,987 | |||||||||||||
NOI | $ | 77,257 | $ | 43,074 | $ | 120,331 | $ | 72,964 | $ | 31,145 | $ | 104,109 |
Three Months Ended March 31, 2019 as compared to Three Months Ended March 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Same-Store | Non-Same-Store | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental | $ | 6,345 | 7.3 | % | $ | 9,033 | 20.8 | % | $ | 15,378 | 11.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant recoveries | 899 | 5.5 | 2,934 | 65.8 | 3,833 | 18.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues | 62 | 1.5 | 53 | 3.7 | 115 | 2.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total office revenues | 7,306 | 6.8 | 12,020 | 24.4 | 19,326 | 12.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rental | 1,034 | 10.0 | 513 | 100.0 | 1,547 | 14.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tenant recoveries | (208) | (58.8) | 318 | 100.0 | 110 | 31.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service revenues and other | 2,499 | 36.5 | (211) | (100.0) | 2,288 | 33.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total studio revenues | 3,325 | 18.9 | 620 | 100.0 | 3,945 | 22.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 10,631 | 8.5 | 12,640 | 25.6 | 23,271 | 13.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office operating expenses | 1,958 | 5.9 | 5,617 | 28.4 | 7,575 | 14.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio operating expenses | 1,319 | 13.6 | 126 | 100.0 | 1,445 | 15.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 3,277 | 7.6 | 5,743 | 29.0 | 9,020 | 14.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Office NOI | 5,348 | 7.2 | 6,403 | 21.7 | 11,751 | 11.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Studio NOI | 2,006 | 25.3 | 494 | 100.0 | 2,500 | 31.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI | $ | 7,354 | 9.0 | % | $ | 6,897 | 23.4 | % | $ | 14,251 | 12.8 | % |
Three Months Ended September 30, 2017 as compared to Three Months Ended September 30, 2016 | |||||||||||||||||
Same-Store | Non-Same-Store | Total | |||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||
Revenues | |||||||||||||||||
Office | |||||||||||||||||
Rental | $ | 3,568 | 4.6 | % | $ | 11,670 | 25.5 | % | $ | 15,238 | 12.3 | % | |||||
Tenant recoveries | 397 | 2.3 | 1,928 | 36.8 | 2,325 | 10.3 | |||||||||||
Parking and other | 1,879 | 58.0 | 635 | 27.9 | 2,514 | 45.5 | |||||||||||
Total Office revenues | 5,844 | 5.9 | 14,233 | 26.7 | 20,077 | 13.2 | |||||||||||
Media & Entertainment | |||||||||||||||||
Rental | 1,118 | 15.7 | 2,792 | 100.0 | 3,910 | 55.1 | |||||||||||
Tenant recoveries | (178 | ) | (73.3 | ) | 68 | 100.0 | (110 | ) | (45.3 | ) | |||||||
Other property-related revenue | 43 | 0.9 | 1,513 | 100.0 | 1,556 | 31.1 | |||||||||||
Other | 1 | 0.7 | 4 | 100.0 | 5 | 3.7 | |||||||||||
Total Media & Entertainment revenues | 984 | 7.9 | 4,377 | 100.0 | 5,361 | 42.9 | |||||||||||
Total revenues | 6,828 | 6.1 | 18,610 | 34.9 | 25,438 | 15.5 | |||||||||||
Operating expenses | |||||||||||||||||
Office operating expenses | 1,700 | 5.3 | 3,427 | 15.5 | 5,127 | 9.5 | |||||||||||
Media & Entertainment operating expenses | 835 | 12.8 | 3,254 | 100.0 | 4,089 | 62.9 | |||||||||||
Total operating expenses | 2,535 | 6.6 | 6,681 | 30.1 | 9,216 | 15.2 | |||||||||||
Office NOI | 4,144 | 6.2 | 10,806 | 34.7 | 14,950 | 15.2 | |||||||||||
Media & Entertainment NOI | 149 | 2.5 | 1,123 | 100.0 | 1,272 | 21.2 | |||||||||||
NOI | $ | 4,293 | 5.9 | % | $ | 11,929 | 38.3 | % | $ | 16,222 | 15.6 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | Dollar Change | Percent Change | ||||||||||||||||||||||||||||||||||||||
Gross interest expense | $ | 27,465 | $ | 22,431 | $ | 5,034 | 22.4 | % | |||||||||||||||||||||||||||||||||
Capitalized interest | (4,706) | (3,586) | (1,120) | 31.2 | |||||||||||||||||||||||||||||||||||||
Amortization of deferred financing costs/loan discounts | 1,591 | 1,658 | (67) | (4.0) | |||||||||||||||||||||||||||||||||||||
TOTAL | $ | 24,350 | $ | 20,503 | $ | 3,847 | 18.8 | % |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percent Change | |||||||||||
Net income | $ | 45,617 | $ | 15,228 | $ | 30,389 | 199.6 | % | ||||||
Adjustments: | ||||||||||||||
Interest expense | 66,086 | 54,775 | 11,311 | 20.6 | ||||||||||
Interest income | (90 | ) | (216 | ) | 126 | (58.3 | ) | |||||||
Unrealized loss on ineffective portion of derivative instruments | 82 | 1,630 | (1,548 | ) | (95.0 | ) | ||||||||
Transaction-related expenses | 598 | 376 | 222 | 59.0 | ||||||||||
Other income | (2,656 | ) | (716 | ) | (1,940 | ) | 270.9 | |||||||
Gains on sale of real estate | (16,866 | ) | (8,515 | ) | (8,351 | ) | 98.1 | |||||||
Income from operations | 92,771 | 62,562 | 30,209 | 48.3 | ||||||||||
Adjustments: | ||||||||||||||
General and administrative | 41,329 | 38,474 | 2,855 | 7.4 | ||||||||||
Depreciation and amortization | 217,340 | 201,890 | 15,450 | 7.7 | ||||||||||
NOI | $ | 351,440 | $ | 302,926 | $ | 48,514 | 16.0 | % | ||||||
Same-Store NOI | $ | 220,895 | $ | 204,520 | $ | 16,375 | 8.0 | % | ||||||
Non-Same-Store NOI | 130,545 | 98,406 | 32,139 | 32.7 | ||||||||||
NOI | $ | 351,440 | $ | 302,926 | $ | 48,514 | 16.0 | % |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Same-Store Office statistics: | |||||||
Number of properties | 31 | 31 | |||||
Rentable square feet | 7,725,130 | 7,725,130 | |||||
Ending % leased | 95.9 | % | 95.5 | % | |||
Ending % occupied | 92.5 | % | 94.5 | % | |||
Average % occupied for the period | 94.1 | % | 94.4 | % | |||
Average annual rental rate per square foot | $ | 41.48 | $ | 38.85 | |||
Same-Store Media and Entertainment statistics: | |||||||
Number of properties | 2 | 2 | |||||
Rentable square feet | 873,002 | 873,002 | |||||
Average % occupied for the period | 90.6 | % | 87.4 | % |
Nine Months Ended September 30, | |||||||||||||||||||
2017 | 2016 | ||||||||||||||||||
Same-Store | Non-Same-Store | Total | Same-Store | Non-Same-Store | Total | ||||||||||||||
Revenues | |||||||||||||||||||
Office | |||||||||||||||||||
Rental | $ | 231,645 | $ | 174,630 | $ | 406,275 | $ | 219,762 | $ | 138,431 | $ | 358,193 | |||||||
Tenant recoveries | 47,433 | 19,988 | 67,421 | 49,279 | 15,214 | 64,493 | |||||||||||||
Parking and other | 13,430 | 8,716 | 22,146 | 9,760 | 6,343 | 16,103 | |||||||||||||
Total Office revenues | 292,508 | 203,334 | 495,842 | 278,801 | 159,988 | 438,789 | |||||||||||||
Media & Entertainment | |||||||||||||||||||
Rental | 22,014 | 4,788 | 26,802 | 19,987 | — | 19,987 | |||||||||||||
Tenant recoveries | 795 | 132 | 927 | 655 | — | 655 | |||||||||||||
Other property-related revenue | 12,143 | 2,821 | 14,964 | 12,784 | — | 12,784 | |||||||||||||
Other | 261 | 10 | 271 | 226 | — | 226 | |||||||||||||
Total Media & Entertainment revenues | 35,213 | 7,751 | 42,964 | 33,652 | — | 33,652 | |||||||||||||
Total revenues | 327,721 | 211,085 | 538,806 | 312,453 | 159,988 | 472,441 | |||||||||||||
Operating Expenses | |||||||||||||||||||
Office operating expenses | 87,306 | 75,218 | 162,524 | 89,187 | 61,582 | 150,769 | |||||||||||||
Media & Entertainment operating expenses | 19,520 | 5,322 | 24,842 | 18,746 | — | 18,746 | |||||||||||||
Total operating expenses | 106,826 | 80,540 | 187,366 | 107,933 | 61,582 | 169,515 | |||||||||||||
Office NOI | 205,202 | 128,116 | 333,318 | 189,614 | 98,406 | 288,020 | |||||||||||||
Media & Entertainment NOI | 15,693 | 2,429 | 18,122 | 14,906 | — | 14,906 | |||||||||||||
NOI | $ | 220,895 | $ | 130,545 | $ | 351,440 | $ | 204,520 | $ | 98,406 | $ | 302,926 |
Nine Months Ended September 30, 2017 as compared to Nine Months Ended September 30, 2016 | |||||||||||||||||
Same-Store | Non-Same-Store | Total | |||||||||||||||
Dollar Change | Percent Change | Dollar Change | Percent Change | Dollar Change | Percent Change | ||||||||||||
Revenues | |||||||||||||||||
Office | |||||||||||||||||
Rental | $ | 11,883 | 5.4 | % | $ | 36,199 | 26.1 | % | $ | 48,082 | 13.4 | % | |||||
Tenant recoveries | (1,846 | ) | (3.7 | ) | 4,774 | 31.4 | 2,928 | 4.5 | |||||||||
Parking and other | 3,670 | 37.6 | 2,373 | 37.4 | 6,043 | 37.5 | |||||||||||
Total Office revenues | 13,707 | 4.9 | 43,346 | 27.1 | 57,053 | 13.0 | |||||||||||
Media & Entertainment | |||||||||||||||||
Rental | 2,027 | 10.1 | 4,788 | 100.0 | 6,815 | 34.1 | |||||||||||
Tenant recoveries | 140 | 21.4 | 132 | 100.0 | 272 | 41.5 | |||||||||||
Other property-related revenue | (641 | ) | (5.0 | ) | 2,821 | 100.0 | 2,180 | 17.1 | |||||||||
Other | 35 | 15.5 | 10 | 100.0 | 45 | 19.9 | |||||||||||
Total Media & Entertainment revenues | 1,561 | 4.6 | 7,751 | 100.0 | 9,312 | 27.7 | |||||||||||
Total revenues | 15,268 | 4.9 | 51,097 | 31.9 | 66,365 | 14.0 | |||||||||||
Operating expenses | |||||||||||||||||
Office operating expenses | (1,881 | ) | (2.1 | ) | 13,636 | 22.1 | 11,755 | 7.8 | |||||||||
Media & Entertainment operating expenses | 774 | 4.1 | 5,322 | 100.0 | 6,096 | 32.5 | |||||||||||
Total operating expenses | (1,107 | ) | (1.0 | ) | 18,958 | 30.8 | 17,851 | 10.5 | |||||||||
Office NOI | 15,588 | 8.2 | 29,710 | 30.2 | 45,298 | 15.7 | |||||||||||
Media & Entertainment NOI | 787 | 5.3 | 2,429 | 100.0 | 3,216 | 21.6 | |||||||||||
NOI | $ | 16,375 | 8.0 | % | $ | 32,139 | 32.7 | % | $ | 48,514 | 16.0 | % |
March 31, 2019 | ||||||||
Debt(1) | $ | 2,735,237 | ||||||
Series A preferred units | 9,815 | |||||||
Common equity capitalization(2) | 5,406,531 | |||||||
TOTAL MARKET CAPITALIZATION | 8,151,583 | |||||||
Series A preferred units & debt/total market capitalization | 33.7 | % |
September 30, 2017 | December 31, 2016 | Interest Rate(1) | Contractual Maturity Date | |||||||||
UNSECURED NOTES PAYABLE | ||||||||||||
Unsecured Revolving Credit Facility(2) | $ | 250,000 | $ | 300,000 | LIBOR + 1.15% to 1.85% | 4/1/2019 | (3) | |||||
5-Year Term Loan due April 2020(2)(4) | 450,000 | 450,000 | LIBOR + 1.30% to 2.20% | 4/1/2020 | ||||||||
5-Year Term Loan due November 2020(2) | 175,000 | 175,000 | LIBOR + 1.30% to 2.20% | 11/17/2020 | ||||||||
7-Year Term Loan due April 2022(2)(5) | 350,000 | 350,000 | LIBOR + 1.60% to 2.55% | 4/1/2022 | ||||||||
7-Year Term Loan due November 2022(2)(6) | 125,000 | 125,000 | LIBOR + 1.60% to 2.55% | 11/17/2022 | ||||||||
Series A Notes | 110,000 | 110,000 | 4.34% | 1/2/2023 | ||||||||
Series E Notes | 50,000 | 50,000 | 3.66% | 9/15/2023 | ||||||||
Series B Notes | 259,000 | 259,000 | 4.69% | 12/16/2025 | ||||||||
Series D Notes | 150,000 | 150,000 | 3.98% | 7/6/2026 | ||||||||
Series C Notes | 56,000 | 56,000 | 4.79% | 12/16/2027 | ||||||||
TOTAL UNSECURED NOTES PAYABLE | 1,975,000 | 2,025,000 | ||||||||||
SECURED NOTES PAYABLE | ||||||||||||
Rincon Center(7) | 98,896 | 100,409 | 5.13% | 5/1/2018 | ||||||||
Sunset Gower Studios/Sunset Bronson Studios | 5,001 | 5,001 | LIBOR + 2.25% | 3/4/2019 | (3) | |||||||
Met Park North(8) | 64,500 | 64,500 | LIBOR + 1.55% | 8/1/2020 | ||||||||
10950 Washington(7) | 27,549 | 27,929 | 5.32% | 3/11/2022 | ||||||||
Pinnacle I(9)(10) | 129,000 | 129,000 | 3.95% | 11/7/2022 | ||||||||
Element LA | 168,000 | 168,000 | 4.59% | 11/6/2025 | ||||||||
Pinnacle II(10) | 87,000 | 87,000 | 4.30% | 6/11/2026 | ||||||||
Hill7(11) | 101,000 | 101,000 | 3.38% | 11/6/2026 | ||||||||
TOTAL SECURED NOTES PAYABLE | 680,946 | 682,839 | ||||||||||
TOTAL NOTES PAYABLE | 2,655,946 | 2,707,839 | ||||||||||
Held for sale balances(10) | (216,000 | ) | (216,000 | ) | ||||||||
Deferred financing costs, net(12) | (15,588 | ) | (18,516 | ) | ||||||||
TOTAL NOTES PAYABLE, NET(13) | $ | 2,424,358 | $ | 2,473,323 |
March 31, 2019 | December 31, 2018 | ||||||||||
Unsecured debt | $ | 2,370,000 | $ | 2,275,000 | |||||||
Secured debt | $ | 365,237 | $ | 365,381 | |||||||
In-substance defeased debt | $ | 137,417 | $ | 138,223 | |||||||
Joint venture partner debt | $ | 66,136 | $ | 66,136 |
Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | Dollar Change | Percent Change | |||||||||||
Net cash provided by operating activities | $ | 239,604 | $ | 200,852 | $ | 38,752 | 19.3 | % | ||||||
Net cash used in investing activities | (384,479 | ) | (219,981 | ) | (164,498 | ) | 74.8 | |||||||
Net cash provided by financing activities | 150,190 | 59,025 | 91,165 | 154.5 |
Three Months Ended March 31, | |||||||||||||||||||||||||||||
2019 | 2018 | Dollar Change | Percent Change | ||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 89,446 | $ | 64,447 | $ | 24,999 | 38.8 | % | |||||||||||||||||||||
Net cash (used in) provided by investing activities | $ | (128,267) | $ | 133,492 | $ | (261,759) | (196.1) | % | |||||||||||||||||||||
Net cash provided by (used in) financing activities | $ | 36,701 | $ | (224,239) | $ | 260,940 | (116.4) | % |
Three Months Ended March 31, | |||||||||||||||||
2019 | 2018 | ||||||||||||||||
Net (loss) income | $ | (36,895) | $ | 52,563 | |||||||||||||
Adjustments: | |||||||||||||||||
Depreciation and amortization | 68,505 | 60,553 | |||||||||||||||
Corporate-related depreciation and amortization | (523) | (484) | |||||||||||||||
Gains on sale of real estate | — | (37,674) | |||||||||||||||
Impairment loss | 52,201 | — | |||||||||||||||
FFO attributable to non-controlling interests | (6,738) | (5,331) | |||||||||||||||
FFO attributable to preferred units | (153) | (159) | |||||||||||||||
FFO TO COMMON STOCKHOLDERS AND UNITHOLDERS | $ | 76,397 | $ | 69,468 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 14,510 | $ | 5,217 | $ | 45,617 | $ | 15,228 | |||||||
Adjustments: | |||||||||||||||
Depreciation and amortization of real estate assets | 70,555 | 66,965 | 215,788 | 200,525 | |||||||||||
Gains on sale of real estate | — | — | (16,866 | ) | (8,515 | ) | |||||||||
FFO attributable to non-controlling interests | (6,609 | ) | (4,902 | ) | (18,561 | ) | (13,574 | ) | |||||||
Net income attributable to preferred units | (159 | ) | (159 | ) | (477 | ) | (477 | ) | |||||||
FFO to common stockholders and unitholders | $ | 78,297 | $ | 67,121 | $ | 225,501 | $ | 193,187 |
ITEM 1A. RISK FACTORS |
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | Total Number of Shares Purchased | Average Price Paid Per Share(1) | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Maximum Number (or Dollar Value) That May Yet Be Purchased Under The Plans or Programs(2) | ||||||||||||||||||||||
January 1 - January 31, 2019 | 98,620 | $ | 27.95 | N/A | N/A | |||||||||||||||||||||
February 1 - February 28, 2019 | — | — | N/A | N/A | ||||||||||||||||||||||
March 1 - March 31, 2019 | 28,260 | 28.33 | N/A | N/A | ||||||||||||||||||||||
TOTAL | 126,880 | $ | 28.04 | — | $ | 200,000,000 |
Period | Total Number of Units Purchased | Average Price Paid Per Unit(1) | Total Number of Units Purchased As Part of Publicly Announced Plans or Programs | Maximum Number (or Dollar Value) That May Yet Be Purchased Under The Plans or Programs(2) | ||||||||||||||||||||||
January 1 - January 31, 2019 | 98,620 | $ | 27.95 | N/A | N/A | |||||||||||||||||||||
February 1 - February 28, 2019 | — | — | N/A | N/A | ||||||||||||||||||||||
March 1 - March 31, 2019 | 28,260 | 28.33 | N/A | N/A | ||||||||||||||||||||||
TOTAL | 126,880 | $ | 28.04 | — | $ | 200,000,000 |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. OTHER INFORMATION |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||||||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||||||||||||||||||||
3.1 | S-11/A | 333-164916 | 3.1 | May 12, 2010 | ||||||||||||||||||||||||||||||||||||||||||||||
3.2 | 8-K | 001-34789 | 3.1 | January 12, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||
3.3 | 10-K | 001-34789 | 10.1 | February 26, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
3.4 | 10-Q | 001-34789 | 3.4 | November 4, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
10.1 | 8-K | 001-34789 | 4 | 4.2 | February 27, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
10.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
31.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
31.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||
32.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||
32.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||
101 | The following financial information from Hudson Pacific Properties, Inc.’s and Hudson Pacific Properties, L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive (Loss) Income (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited), (vi) Consolidated Statements of Cash Flows (unaudited) and (vii) Notes to Unaudited Consolidated Financial Statements** |
Incorporated by Reference | ||||||||||
Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | |||||
3.1 | S-11/A | 333-164916 | 3.1 | May 12, 2010 | ||||||
3.2 | 8-K | 001-34789 | 3.1 | January 12, 2015 | ||||||
3.3 | 10-K | 001-34789 | 10.1 | February 26, 2016 | ||||||
3.4 | 10-Q | 001-34789 | 3.4 | November 4, 2016 | ||||||
4.1 | 8-K | 001-34789 | 4.1 | October 2, 2017 | ||||||
4.2 | 8-K | 001-34789 | 4.2 | October 2, 2017 | ||||||
10.1 | 8-K | 001-34789 | 10.1 | May 25, 2017 | ||||||
10.2 | ||||||||||
31.1 | ||||||||||
31.2 | ||||||||||
31.3 | ||||||||||
31.4 | ||||||||||
32.1 | ||||||||||
32.2 | ||||||||||
101 | The following financial information from Hudson Pacific Properties, Inc.’s and Hudson Pacific Properties, L.P.’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (Loss) (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited), (vi) Consolidated Statements of Cash Flows (unaudited) and (vii) Notes to Unaudited Consolidated Financial Statements ** |
* | Denotes a management contract or compensatory plan or arrangement. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
** | Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
Date: | May 6, 2019 | ||||||||||
/S/ VICTOR J. COLEMAN | |||||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) |
HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
Date: | May 6, 2019 | ||||||||||
/S/ MARK T. LAMMAS | |||||||||||
Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer (Principal Financial Officer) |
HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
Date: | May 6, 2019 | ||||||||||
/S/ VICTOR J. COLEMAN | |||||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) |
HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
Date: | May 6, 2019 | ||||||||||
/S/ MARK T. LAMMAS | |||||||||||
Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer (Principal Financial Officer) |