Exhibit 99.1
HUDSON PACIFIC PROPERTIES, INC.
COMPUTATION OF RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDENDS
(Unaudited; in thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Consolidated | |
| | | Six months
ended
June 30,
2017 | | | For the year ended December 31, | |
| | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
Earnings | | | | | | | | | | | | | | | | |
Net income (loss) from continuing operations before income from unconsolidated joint ventures | | $ | 29,703 | | | $ | 42,106 | | | $ | (16,082 | ) | | $ | 23,686 | | | $ | 1,415 | | | $ | (5,457 | ) |
Plus: | | | | | | | | | | | | | | | | |
Fixed charges (see below) | | $ | 49,740 | | | $ | 89,668 | | | $ | 58,951 | | | $ | 33,685 | | | $ | 30,925 | | | $ | 21,465 | |
Distributions from unconsolidated joint ventures | | $ | 16,491 | | | $ | 1,188 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Amortization of capitalized interest | | $ | 433 | | | $ | 577 | | | $ | 410 | | | $ | 232 | | | $ | 115 | | | $ | 73 | |
Less: | | | | | | | | | | | | | | | | |
Capitalized interest and loan fees | | $ | (4,986 | ) | | $ | (11,307 | ) | | $ | (6,516 | ) | | $ | (6,938 | ) | | $ | (4,562 | ) | | $ | (1,461 | ) |
Preferred distributions of consolidated subsidiaries | | $ | (318 | ) | | $ | (636 | ) | | $ | (636 | ) | | $ | (641 | ) | | $ | (749 | ) | | $ | (780 | ) |
Noncontrolling interests in income of subsidiaries that have not incurred fixed charges | | $ | (6,184 | ) | | $ | (9,577 | ) | | $ | (5,837 | ) | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Earnings | | $ | 84,879 | | | $ | 112,019 | | | $ | 30,290 | | | $ | 50,024 | | | $ | 27,144 | | | $ | 13,840 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | | | | | | | | | | | | | | | |
Interest expense (including amortization of loan fees) | | $ | 43,625 | | | $ | 76,044 | | | $ | 50,667 | | | $ | 25,932 | | | $ | 25,470 | | | $ | 19,071 | |
Capitalized interest and loan fees | | $ | 4,986 | | | $ | 11,307 | | | $ | 6,516 | | | $ | 6,938 | | | $ | 4,562 | | | $ | 1,461 | |
Preferred distributions of consolidated subsidiaries | | $ | 318 | | | $ | 636 | | | $ | 636 | | | $ | 641 | | | $ | 749 | | | $ | 780 | |
Estimate of interest within rental expense | | $ | 811 | | | $ | 1,681 | | | $ | 1,132 | | | $ | 174 | | | $ | 144 | | | $ | 153 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Charges | | $ | 49,740 | | | $ | 89,668 | | | $ | 58,951 | | | $ | 33,685 | | | $ | 30,925 | | | $ | 21,465 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Preferred dividends | | $ | — | | | $ | — | | | $ | 11,469 | | | $ | 12,144 | | | $ | 12,144 | | | $ | 12,144 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Distributions on redemption of preferred units | | $ | — | | | $ | — | | | $ | 5,970 | | | $ | — | | | $ | — | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Combined fixed charges and preferred dividends | | $ | 49,740 | | | $ | 89,668 | | | $ | 76,390 | | | $ | 45,829 | | | $ | 43,069 | | | $ | 33,609 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Earnings to Fixed Charges | | | | | | | | | | | | | | | | |
Ratio | | | 1.71 | | | | 1.25 | | | | | | | | 1.49 | | | | | | | | | |
Deficiency | | | — | | | | — | | | $ | 28,661 | | | | — | | | $ | 3,781 | | | $ | 7,625 | |
Earnings to Combined Fixed Charges | | | | | | | | | | | | | | | | |
Ratio | | | 1.71 | | | | 1.25 | | | | | | | | 1.09 | | | | | | | | | |
Deficiency | | | — | | | | — | | | $ | 46,100 | | | | | | | $ | 15,925 | | | $ | 19,769 | |
HUDSON PACIFIC PROPERTIES, L.P.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(Unaudited; in thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six months
ended
June 30, | | | For the year ended December 31, | |
| | | 2017 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
Earnings | | | | | | | | | | | | | | | | |
Net income (loss) from continuing operations before income from unconsolidated joint ventures | | $ | 29,703 | | | $ | 42,106 | | | $ | (16,082 | ) | | $ | 23,686 | | | $ | 1,415 | | | $ | (5,457 | ) |
Plus: | | | | | | | | | | | | | | | | |
Fixed charges (see below) | | $ | 49,422 | | | $ | 89,032 | | | $ | 58,315 | | | $ | 33,044 | | | $ | 30,176 | | | $ | 20,685 | |
Distributions from unconsolidated joint ventures | | $ | 16,491 | | | $ | 1,188 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
Amortization of capitalized interest | | $ | 433 | | | $ | 577 | | | $ | 410 | | | $ | 232 | | | $ | 115 | | | $ | 73 | |
Less: | | | | | | | | | | | | | | | | |
Capitalized interest and loan fees | | $ | (4,986 | ) | | $ | (11,307 | ) | | $ | (6,516 | ) | | $ | (6,938 | ) | | $ | (4,562 | ) | | $ | (1,461 | ) |
Preferred distributions of consolidated subsidiaries | | $ | (6,184 | ) | | $ | (9,577 | ) | | $ | (5,837 | ) | | $ | — | | | $ | — | | | $ | — | |
Total Earnings | | $ | 84,879 | | | $ | 112,019 | | | $ | 30,290 | | | $ | 50,024 | | | $ | 27,144 | | | $ | 13,840 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges | | | | | | | | | | | | | | | | |
Interest expense (including amortization of loan fees) | | $ | 43,625 | | | $ | 76,044 | | | $ | 50,667 | | | $ | 25,932 | | | $ | 25,470 | | | $ | 19,071 | |
Capitalized interest and loan fees | | $ | 4,986 | | | $ | 11,307 | | | $ | 6,516 | | | $ | 6,938 | | | $ | 4,562 | | | $ | 1,461 | |
Estimate of interest within rental expense | | $ | 811 | | | $ | 1,681 | | | $ | 1,132 | | | $ | 174 | | | $ | 144 | | | $ | 153 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total Fixed Charges | | $ | 49,422 | | | $ | 89,032 | | | $ | 58,315 | | | $ | 33,044 | | | $ | 30,176 | | | $ | 20,685 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Earnings to Fixed Charges | | | | | | | | | | | | | | | | |
Ratio | | | 1.72 | | | | 1.26 | | | | | | | | 1.51 | | | | | | | | | |
Deficiency | | | — | | | | — | | | $ | 28,025 | | | | — | | | $ | 3,032 | | | $ | 6,845 | |
