Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 09, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Hudson Pacific Properties, Inc. | ||
Entity Central Index Key | 1,482,512 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 156,679,052 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 5,230 | ||
Hudson Pacific Partners, L.P. | |||
Entity Information [Line Items] | |||
Entity Registrant Name | Hudson Pacific Properties, L.P. | ||
Entity Central Index Key | 1,496,264 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Investment in real estate, at cost | $ 6,423,441 | $ 5,878,480 |
Accumulated depreciation and amortization | (533,498) | (375,207) |
Investment in real estate, net | 5,889,943 | 5,503,273 |
Cash and cash equivalents | 78,922 | 83,015 |
Restricted cash | 22,358 | 25,177 |
Accounts receivable, net | 4,363 | 7,007 |
Straight-line rent receivables, net | 109,457 | 79,209 |
Deferred leasing costs and lease intangible assets, net | 244,554 | 288,929 |
Prepaid expenses and other assets, net | 61,138 | 77,214 |
Assets associated with real estate held for sale | 211,335 | 615,174 |
TOTAL ASSETS | 6,622,070 | 6,678,998 |
LIABILITIES | ||
Notes payable, net | 2,421,380 | 2,473,326 |
Accounts payable and accrued liabilities | 163,107 | 114,674 |
Lease intangible liabilities, net | 49,930 | 73,267 |
Security deposits and prepaid rent | 64,031 | 66,878 |
Derivative liabilities | 265 | 1,303 |
Liabilities associated with real estate held for sale | 2,216 | 236,623 |
TOTAL LIABILITIES | 2,700,929 | 2,966,071 |
6.25% Series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Common stock, $0.01 par value, 490,000,000 authorized, 155,602,508 shares and 136,492,235 shares outstanding at December 31, 2017 and 2016, respectively | 1,556 | 1,364 |
Additional paid-in capital | 3,622,988 | 3,109,394 |
Accumulated other comprehensive income | 13,227 | 9,496 |
Accumulated deficit | 0 | (16,971) |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,637,771 | 3,103,283 |
TOTAL EQUITY | 3,910,964 | 3,702,750 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Accumulated other comprehensive income | 13,227 | 9,496 |
Total Liabilities and Equity/Capital | 6,622,070 | 6,678,998 |
Non-controlling Interest—Members in Consolidated Entities | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 258,602 | 304,608 |
Non-controlling interest—Units in the operating partnership | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 14,591 | 294,859 |
TOTAL EQUITY | 14,591 | 294,859 |
Hudson Pacific Partners, L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 6,423,441 | 5,878,480 |
Accumulated depreciation and amortization | (533,498) | (375,207) |
Investment in real estate, net | 5,889,943 | 5,503,273 |
Cash and cash equivalents | 78,922 | 83,015 |
Restricted cash | 22,358 | 25,177 |
Accounts receivable, net | 4,363 | 7,007 |
Straight-line rent receivables, net | 109,457 | 79,209 |
Deferred leasing costs and lease intangible assets, net | 244,554 | 288,929 |
Prepaid expenses and other assets, net | 61,138 | 77,214 |
Assets associated with real estate held for sale | 211,335 | 615,174 |
TOTAL ASSETS | 6,622,070 | 6,678,998 |
LIABILITIES | ||
Notes payable, net | 2,421,380 | 2,473,326 |
Accounts payable and accrued liabilities | 163,107 | 114,674 |
Lease intangible liabilities, net | 49,930 | 73,267 |
Security deposits and prepaid rent | 64,031 | 66,878 |
Derivative liabilities | 265 | 1,303 |
Liabilities associated with real estate held for sale | 2,216 | 236,623 |
TOTAL LIABILITIES | 2,700,929 | 2,966,071 |
6.25% Series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Accumulated other comprehensive income | 13,276 | 5,878 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Common units, 156,171,553 and 145,942,855 issued and outstanding at December 31, 2017 and 2016, respectively. | 3,639,086 | 3,392,264 |
Accumulated other comprehensive income | 13,276 | 5,878 |
Total Hudson Pacific Properties, L.P. partners' capital | 3,652,362 | 3,398,142 |
Non-controlling interest—members in consolidated entities | 258,602 | 304,608 |
TOTAL CAPITAL | 3,910,964 | 3,702,750 |
Total Liabilities and Equity/Capital | $ 6,622,070 | $ 6,678,998 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 490,000,000 | 490,000,000 |
Company stock, shares outstanding | 155,602,508 | 136,492,235 |
Hudson Pacific Partners, L.P. | ||
Common Stock: | ||
Company stock, shares outstanding | 156,171,553 | 145,942,855 |
Common stock, shares issued | 156,171,553 | 145,942,855 |
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||
Temporary Equity, dividend rate percentage | 6.25% | 6.25% |
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | Hudson Pacific Partners, L.P. | ||
Temporary Equity, dividend rate percentage | 6.25% | 6.25% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
REVENUES | |||
TOTAL REVENUES | $ 728,139 | $ 639,639 | $ 520,850 |
OPERATING EXPENSES | |||
General and administrative | 54,459 | 52,400 | 38,534 |
Depreciation and amortization | 283,570 | 269,087 | 245,071 |
TOTAL OPERATING EXPENSES | 591,536 | 550,232 | 473,462 |
INCOME FROM OPERATIONS | 136,603 | 89,407 | 47,388 |
OTHER EXPENSE (INCOME) | |||
Interest expense | 90,037 | 76,044 | 50,667 |
Interest income | (97) | (260) | (124) |
Unrealized loss on ineffective portion of derivatives | 70 | 1,436 | 0 |
Transaction-related expenses | 598 | 376 | 43,336 |
Other (income) expense | (2,992) | (1,558) | 62 |
TOTAL OTHER EXPENSES | 87,616 | 76,038 | 93,941 |
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE | 48,987 | 13,369 | (46,553) |
Gains on sale of real estate | 45,574 | 30,389 | 30,471 |
NET INCOME (LOSS) | 94,561 | 43,758 | (16,082) |
Net income attributable to preferred stock and units | (636) | (636) | (12,105) |
Original issuance costs of redeemed Series B preferred stock | 0 | 0 | (5,970) |
Net income attributable to participating securities | (1,003) | (766) | (356) |
Net income attributable to non-controlling interest in consolidated entities | (24,960) | (9,290) | (3,853) |
Net (income) loss attributable to non-controlling interest in the operating partnership | (375) | (5,848) | 21,969 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 67,587 | $ 27,218 | $ (16,397) |
Basic and diluted per share amounts: | |||
Net income (loss) attributable to common stockholders - basic (in dollars per share) | $ 0.44 | $ 0.26 | $ (0.19) |
Net income (loss) attributable to common stockholders - diluted (in dollars per share) | $ 0.44 | $ 0.25 | $ (0.19) |
Weighted average shares of common stock outstanding—basic (in shares) | 153,488,730 | 106,188,902 | 85,927,216 |
Weighted average shares of common stock outstanding—diluted (in shares) | 153,882,814 | 110,369,055 | 85,927,216 |
Office | |||
REVENUES | |||
Rental | $ 545,453 | $ 486,956 | $ 394,543 |
Tenant recoveries | 92,244 | 84,386 | 66,235 |
Parking and other | 29,413 | 21,894 | 20,940 |
TOTAL REVENUES | 667,110 | 593,236 | 481,718 |
OPERATING EXPENSES | |||
Operating expenses | 218,873 | 202,935 | 166,131 |
Media & Entertainment | |||
REVENUES | |||
Rental | 36,529 | 26,837 | 23,027 |
Tenant recoveries | 1,336 | 1,884 | 943 |
Other property-related revenue | 22,805 | 17,380 | 14,849 |
Parking and other | 359 | 302 | 313 |
TOTAL REVENUES | 61,029 | 46,403 | 39,132 |
OPERATING EXPENSES | |||
Operating expenses | 34,634 | 25,810 | 23,726 |
Hudson Pacific Partners, L.P. | |||
REVENUES | |||
TOTAL REVENUES | 728,139 | 639,639 | 520,850 |
OPERATING EXPENSES | |||
General and administrative | 54,459 | 52,400 | 38,534 |
Depreciation and amortization | 283,570 | 269,087 | 245,071 |
TOTAL OPERATING EXPENSES | 591,536 | 550,232 | 473,462 |
INCOME FROM OPERATIONS | 136,603 | 89,407 | 47,388 |
OTHER EXPENSE (INCOME) | |||
Interest expense | 90,037 | 76,044 | 50,667 |
Interest income | (97) | (260) | (124) |
Unrealized loss on ineffective portion of derivatives | 70 | 1,436 | 0 |
Transaction-related expenses | 598 | 376 | 43,336 |
Other (income) expense | (2,992) | (1,558) | 62 |
TOTAL OTHER EXPENSES | 87,616 | 76,038 | 93,941 |
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE | 48,987 | 13,369 | (46,553) |
Gains on sale of real estate | 45,574 | 30,389 | 30,471 |
NET INCOME (LOSS) | 94,561 | 43,758 | (16,082) |
Net income attributable to preferred stock and units | (636) | (636) | (12,105) |
Original issuance costs of redeemed Series B preferred stock | 0 | 0 | (5,970) |
Net income attributable to participating securities | (1,003) | (766) | (356) |
Net income attributable to non-controlling interest in consolidated entities | (24,960) | (9,290) | (3,853) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 67,962 | 33,066 | (38,366) |
Net income (loss) attributable to Hudson Pacific Properties, L.P. | 69,601 | 34,468 | (19,935) |
Total preferred distributions | $ 636 | $ 636 | $ 18,075 |
Basic and diluted per share amounts: | |||
Weighted average shares of common stock outstanding—basic (in shares) | 154,276,773 | 145,595,246 | 128,948,077 |
Weighted average shares of common stock outstanding—diluted (in shares) | 154,670,857 | 146,739,246 | 128,948,077 |
Basic and diluted per unit amounts: | |||
Net income (loss) attributable to common unitholders - basic (in dollars per share) | $ 0.44 | $ 0.23 | $ (0.30) |
Net income (loss) attributable to common unitholders — diluted (in dollars per share) | $ 0.44 | $ 0.23 | $ (0.30) |
Weighted average shares of common units outstanding - basic (in shares) | 154,276,773 | 145,595,246 | 128,948,077 |
Weighted average shares of common units outstanding - diluted (in shares) | 154,670,857 | 146,739,246 | 128,948,077 |
Hudson Pacific Partners, L.P. | Office | |||
REVENUES | |||
Rental | $ 545,453 | $ 486,956 | $ 394,543 |
Tenant recoveries | 92,244 | 84,386 | 66,235 |
Parking and other | 29,413 | 21,894 | 20,940 |
TOTAL REVENUES | 667,110 | 593,236 | 481,718 |
OPERATING EXPENSES | |||
Operating expenses | 218,873 | 202,935 | 166,131 |
Hudson Pacific Partners, L.P. | Media & Entertainment | |||
REVENUES | |||
Rental | 36,529 | 26,837 | 23,027 |
Tenant recoveries | 1,336 | 1,884 | 943 |
Other property-related revenue | 22,805 | 17,380 | 14,849 |
Parking and other | 359 | 302 | 313 |
TOTAL REVENUES | 61,029 | 46,403 | 39,132 |
OPERATING EXPENSES | |||
Operating expenses | $ 34,634 | $ 25,810 | $ 23,726 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | $ 94,561 | $ 43,758 | $ (16,082) |
Other comprehensive income: change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Comprehensive income (loss) | 101,959 | 49,700 | (13,485) |
Comprehensive income attributable to preferred stock and units | (636) | (636) | (12,105) |
Comprehensive income attributable to redemption of Series B preferred stock | 0 | 0 | (5,970) |
Comprehensive income attributable to participating securities | (1,003) | (766) | (356) |
Comprehensive income attributable to non-controlling interest in consolidated entities | (24,960) | (9,290) | (3,853) |
Comprehensive (income) loss attributable to non-controlling interest in the operating partnership | (420) | (1,213) | 20,734 |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 74,940 | 37,795 | (15,035) |
Hudson Pacific Partners, L.P. | |||
Net income (loss) | 94,561 | 43,758 | (16,082) |
Other comprehensive income: change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Comprehensive income (loss) | 101,959 | 49,700 | (13,485) |
Comprehensive income attributable to preferred stock and units | (636) | (636) | (12,105) |
Comprehensive income attributable to redemption of Series B preferred stock | 0 | 0 | (5,970) |
Comprehensive income attributable to participating securities | (1,003) | (766) | (356) |
Comprehensive income attributable to non-controlling interest in consolidated entities | (24,960) | (9,290) | (3,853) |
Comprehensive income attributable to preferred stock and units | (636) | (636) | (12,105) |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 75,360 | $ 39,008 | $ (35,769) |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Series B Redeemable Preferred Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Non-controlling interest—Units in the operating partnership | Non-controlling interest—Members in Consolidated Entities |
Beginning balance at Dec. 31, 2014 | $ 1,275,015 | $ 668 | $ 145,000 | $ 1,070,833 | $ (34,884) | $ (2,443) | $ 52,851 | $ 42,990 |
Beginning balance (in shares) at Dec. 31, 2014 | 66,797,816 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contributions | 217,795 | 217,795 | ||||||
Distributions | (2,013) | (2,013) | ||||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 380,620 | $ 127 | 380,493 | |||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | 12,650,000 | |||||||
Redemption of Series B preferred stock | (145,000) | (145,000) | ||||||
Issuance of common units for acquisition properties | 1,814,936 | 1,814,936 | ||||||
Issuance of unrestricted stock | 285,445 | $ 87 | 285,358 | |||||
Issuance of unrestricted stock (in shares) | 8,820,482 | |||||||
Issuance of restricted stock | 0 | |||||||
Issuance of restricted stock (in shares) | 36,223 | |||||||
Shares withheld to satisfy tax withholding | (5,128) | (5,128) | ||||||
Shares withheld to satisfy tax withholding (in shares) | (85,469) | |||||||
Declared dividend | (87,344) | (11,469) | (50,244) | (25,631) | ||||
Amortization of stock-based compensation | 8,832 | 8,832 | ||||||
Net income (loss) | (16,718) | 11,469 | (10,071) | (21,969) | 3,853 | |||
Change in fair value of derivatives | 2,597 | 1,362 | 1,235 | |||||
Exchange of common units in the operating partnership for common stock | 0 | $ 9 | 20,835 | (20,844) | ||||
Exchange of Non-controlling Interests — common units in the operating partnership for common stock (in shares) | 934,728 | |||||||
Change in fair value of derivatives | 2,597 | |||||||
Ending balance at Dec. 31, 2015 | 3,729,037 | $ 891 | 0 | 1,710,979 | (44,955) | (1,081) | 1,800,578 | 262,625 |
Ending balance (in shares) at Dec. 31, 2015 | 89,153,780 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contributions | 33,996 | 33,996 | ||||||
Distributions | (1,303) | (1,303) | ||||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 1,449,581 | $ 470 | 1,449,111 | |||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | 47,010,695 | |||||||
Issuance of unrestricted stock | 6 | $ 6 | ||||||
Issuance of unrestricted stock (in shares) | 590,520 | |||||||
Shares withheld to satisfy tax withholding | (8,427) | $ (3) | (8,424) | |||||
Shares withheld to satisfy tax withholding (in shares) | (262,760) | |||||||
Declared dividend | (117,819) | (90,005) | (27,814) | |||||
Amortization of stock-based compensation | 14,654 | 13,609 | 1,045 | |||||
Net income (loss) | 43,122 | 27,984 | 5,848 | 9,290 | ||||
Change in fair value of derivatives | 5,942 | 10,577 | (4,635) | |||||
Redemption of common units in the operating partnership | (1,446,039) | 34,124 | (1,480,163) | |||||
Ending balance at Dec. 31, 2016 | $ 3,702,750 | $ 1,364 | 0 | 3,109,394 | (16,971) | 9,496 | 294,859 | 304,608 |
Ending balance (in shares) at Dec. 31, 2016 | 136,492,235 | 136,492,235 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Contributions | $ 3,870 | 3,870 | ||||||
Distributions | (74,836) | (74,836) | ||||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 647,382 | $ 187 | 647,195 | |||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | 18,656,575 | |||||||
Issuance of unrestricted stock | 0 | $ 9 | (9) | |||||
Issuance of unrestricted stock (in shares) | 917,086 | |||||||
Shares withheld to satisfy tax withholding | (16,041) | $ (4) | (16,037) | |||||
Shares withheld to satisfy tax withholding (in shares) | (463,388) | |||||||
Declared dividend | (158,544) | (106,269) | (51,619) | (656) | ||||
Amortization of stock-based compensation | 15,915 | 13,249 | 2,666 | |||||
Net income (loss) | 93,925 | 68,590 | 375 | 24,960 | ||||
Change in fair value of derivatives | 1,500 | |||||||
Change in fair value of derivatives | 7,398 | 7,353 | 45 | |||||
Redemption of common units in the operating partnership | (310,855) | (24,535) | (3,622) | (282,698) | ||||
Ending balance at Dec. 31, 2017 | $ 3,910,964 | $ 1,556 | $ 0 | $ 3,622,988 | $ 0 | $ 13,227 | $ 14,591 | $ 258,602 |
Ending balance (in shares) at Dec. 31, 2017 | 155,602,508 | 155,602,508 |
Consolidated Statements of Capi
Consolidated Statements of Capital - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance (in shares) | 136,492,235 | ||
Contributions | $ 3,870 | $ 33,996 | $ 217,795 |
Distributions | (74,836) | (1,303) | (2,013) |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | 380,620 |
Issuance of unrestricted stock | 0 | 6 | 285,445 |
Issuance of restricted units | 0 | ||
Units withheld to satisfy tax withholding | (16,041) | (8,427) | (5,128) |
Declared distributions | (158,544) | (117,819) | (87,344) |
Amortization of unit-based compensation | 15,915 | 14,654 | 8,832 |
Net income (loss) | 93,925 | 43,122 | (16,718) |
Change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Redemption of Series B preferred stock | (145,000) | ||
Redemption of operating partnership units and common units | $ (310,855) | $ (1,446,039) | |
Ending balance (in shares) | 155,602,508 | 136,492,235 | |
Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,702,750 | $ 3,729,037 | 1,275,015 |
Beginning balance (in shares) | 145,942,855 | ||
Contributions | $ 3,870 | 33,996 | 217,795 |
Distributions | (74,836) | (1,303) | (2,013) |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | 380,620 |
Issuance of unrestricted stock | 0 | 6 | 2,100,381 |
Issuance of restricted units | 0 | ||
Units withheld to satisfy tax withholding | (16,041) | (8,427) | (5,128) |
Declared distributions | (158,544) | (117,819) | (87,344) |
Amortization of unit-based compensation | 15,915 | 14,654 | 8,832 |
Net income (loss) | 93,925 | 43,122 | (16,718) |
Change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Redemption of Series B preferred stock | (145,000) | ||
Redemption of operating partnership units and common units | (310,855) | (1,446,039) | |
Ending balance | $ 3,910,964 | $ 3,702,750 | 3,729,037 |
Ending balance (in shares) | 156,171,553 | 145,942,855 | |
Hudson Pacific Partners, L.P. | Total Partners’ Capital | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,398,142 | $ 3,466,412 | 1,232,025 |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | 380,620 |
Issuance of unrestricted stock | 6 | 2,100,381 | |
Units withheld to satisfy tax withholding | (16,041) | (8,427) | (5,128) |
Declared distributions | (158,544) | (117,819) | (87,344) |
Amortization of unit-based compensation | 15,915 | 14,654 | 8,832 |
Net income (loss) | 68,965 | 33,832 | (20,571) |
Change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Redemption of Series B preferred stock | (145,000) | ||
Redemption of operating partnership units and common units | (310,855) | (1,446,039) | |
Ending balance | 3,652,362 | 3,398,142 | 3,466,412 |
Hudson Pacific Partners, L.P. | Preferred Units | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | 0 | 0 | 145,000 |
Declared distributions | (11,469) | ||
Net income (loss) | 11,469 | ||
Redemption of Series B preferred stock | (145,000) | ||
Ending balance | 0 | 0 | 0 |
Hudson Pacific Partners, L.P. | Common Stock | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,392,264 | $ 3,466,476 | $ 1,089,686 |
Beginning balance (in shares) | 145,942,855 | 145,450,095 | 69,180,379 |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | $ 647,382 | $ 1,449,581 | $ 380,620 |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 18,656,575 | 47,010,695 | 12,650,000 |
Issuance of unrestricted stock | $ 6 | $ 2,100,381 | |
Issuance of unrestricted stock (in shares) | 917,086 | 590,520 | 63,668,962 |
Issuance of restricted stock (in shares) | 36,223 | ||
Units withheld to satisfy tax withholding | $ (16,041) | $ (8,427) | $ (5,128) |
Units withheld to satisfy tax withholding (in shares) | (463,388) | (262,760) | (85,469) |
Declared distributions | $ (158,544) | $ (117,819) | $ (75,875) |
Amortization of unit-based compensation | 15,915 | 14,654 | 8,832 |
Net income (loss) | 68,965 | 33,832 | (32,040) |
Redemption of operating partnership units and common units | $ (310,855) | $ (1,446,039) | |
Redemption of common units (in shares) | (8,881,575) | (46,845,695) | |
Ending balance | $ 3,639,086 | $ 3,392,264 | $ 3,466,476 |
Ending balance (in shares) | 156,171,553 | 145,942,855 | 145,450,095 |
Hudson Pacific Partners, L.P. | Accumulated Other Comprehensive (Loss) Income | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 5,878 | $ (64) | $ (2,661) |
Change in fair value of derivatives | 7,398 | 5,942 | 2,597 |
Ending balance | 13,276 | 5,878 | (64) |
Hudson Pacific Partners, L.P. | Non-controlling interest—Members in Consolidated Entities | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | 304,608 | 262,625 | 42,990 |
Contributions | 3,870 | 33,996 | 217,795 |
Distributions | (74,836) | (1,303) | (2,013) |
Net income (loss) | 24,960 | 9,290 | 3,853 |
Ending balance | $ 258,602 | $ 304,608 | $ 262,625 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ 94,561 | $ 43,758 | $ (16,082) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 283,570 | 269,087 | 245,071 | |
Non-cash portion of interest expense | 6,032 | 4,464 | 4,746 | |
Amortization of stock-based compensation | 15,079 | 14,144 | 8,421 | |
Straight-line rents | (29,638) | (29,079) | (29,392) | |
Straight-line rent expenses | 433 | 1,023 | 408 | |
Amortization of above- and below-market leases, net | (18,062) | (19,734) | (22,073) | |
Amortization of above- and below-market ground lease, net | 2,505 | 2,160 | 1,642 | |
Amortization of lease incentive costs | 1,546 | 1,388 | 581 | |
Other non-cash adjustments | [1] | 883 | 707 | (246) |
Gains on sale of real estate | (45,574) | (30,389) | (30,471) | |
Change in operating assets and liabilities: | ||||
Accounts receivable | 1,929 | 15,088 | (5,734) | |
Deferred leasing costs and lease intangibles | (32,244) | (43,476) | (28,980) | |
Prepaid expenses and other assets | 233 | (7,312) | (17,032) | |
Accounts payable and accrued liabilities | 19,447 | (4,426) | 18,342 | |
Security deposits and prepaid rent | (7,741) | 9,371 | 46,582 | |
Net cash provided by operating activities | 292,959 | 226,774 | 175,783 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to investment property | (302,447) | (258,718) | (170,590) | |
Property acquisitions | (257,734) | (630,145) | (1,804,597) | |
Contributions to unconsolidated entities | (1,071) | (37,228) | 0 | |
Distributions from unconsolidated entities | 15,964 | 0 | 0 | |
Proceeds from repayment of notes receivable | 0 | 28,892 | 0 | |
Proceeds from sales of real estate | 212,250 | 372,302 | 177,488 | |
Net cash used in investing activities | (333,038) | (524,897) | (1,797,699) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from notes payable | 766,660 | 1,318,000 | 2,234,687 | |
Payments of notes payable | (822,526) | (888,607) | (913,694) | |
Proceeds from issuance of common stock, net | 647,382 | 1,449,581 | 380,620 | |
Redemption of preferred stock/units | (310,855) | (1,446,039) | 0 | |
Redemption of Series B preferred stock | 0 | 0 | (145,000) | |
Distributions paid to common stock and unitholders | (158,544) | (117,819) | (75,875) | |
Distributions paid to preferred stock and unitholders | (636) | (636) | (12,071) | |
Contributions from non-controlling member in consolidated entities | 3,870 | 33,996 | 217,795 | |
Distributions to non-controlling member in consolidated entities | (74,836) | (1,303) | (2,013) | |
Payments to satisfy tax withholding | (16,041) | (8,427) | (5,128) | |
Payments of loan costs | (1,307) | (3,992) | (20,680) | |
Net cash provided by financing activities | 33,167 | 334,754 | 1,658,641 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (6,912) | 36,631 | 36,725 | |
Cash and cash equivalents and restricted cash—beginning of period | 108,192 | 71,561 | 34,836 | |
Cash and cash equivalents and restricted cash—end of period | 101,280 | 108,192 | 71,561 | |
Supplemental disclosure of cash flow information | ||||
Cash paid for interest, net of capitalized interest | 77,234 | 82,491 | 50,208 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Accounts payable and accrued liabilities for real estate investments | (19,587) | (37,364) | (27,972) | |
Reclassification of investment in unconsolidated entities for real estate investments | 7,835 | 0 | 0 | |
Relief of debt in conjunction with sale of real estate | (216,000) | 0 | 0 | |
Proceeds from sale of real estate | 216,000 | 0 | 0 | |
Issuance of common stock in connection with property acquisition | 0 | 0 | 87 | |
Additional paid-in capital in connection with property acquisition | 0 | 0 | 285,358 | |
Non-controlling common units in the operating partnership in connection with property acquisition | 0 | 0 | 1,814,936 | |
Hudson Pacific Partners, L.P. | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | 94,561 | 43,758 | (16,082) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 283,570 | 269,087 | 245,071 | |
Non-cash portion of interest expense | 6,032 | 4,464 | 4,746 | |
Amortization of stock-based compensation | 15,079 | 14,144 | 8,421 | |
Straight-line rents | (29,638) | (29,079) | (29,392) | |
Straight-line rent expenses | 433 | 1,023 | 408 | |
Amortization of above- and below-market leases, net | (18,062) | (19,734) | (22,073) | |
Amortization of above- and below-market ground lease, net | 2,505 | 2,160 | 1,642 | |
Amortization of lease incentive costs | 1,546 | 1,388 | 581 | |
Other non-cash adjustments | [1] | 883 | 707 | (246) |
Gains on sale of real estate | (45,574) | (30,389) | (30,471) | |
Change in operating assets and liabilities: | ||||
Accounts receivable | 1,929 | 15,088 | (5,734) | |
Deferred leasing costs and lease intangibles | (32,244) | (43,476) | (28,980) | |
Prepaid expenses and other assets | 233 | (7,312) | (17,032) | |
Accounts payable and accrued liabilities | 19,447 | (4,426) | 18,342 | |
Security deposits and prepaid rent | (7,741) | 9,371 | 46,582 | |
Net cash provided by operating activities | 292,959 | 226,774 | 175,783 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Additions to investment property | (302,447) | (258,718) | (170,590) | |
Property acquisitions | (257,734) | (630,145) | (1,804,597) | |
Contributions to unconsolidated entities | (1,071) | (37,228) | 0 | |
Distributions from unconsolidated entities | 15,964 | 0 | 0 | |
Proceeds from repayment of notes receivable | 0 | 28,892 | 0 | |
Proceeds from sales of real estate | 212,250 | 372,302 | 177,488 | |
Net cash used in investing activities | (333,038) | (524,897) | (1,797,699) | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from notes payable | 766,660 | 1,318,000 | 2,234,687 | |
Payments of notes payable | (822,526) | (888,607) | (913,694) | |
Proceeds from issuance of common stock, net | 647,382 | 1,449,581 | 380,620 | |
Redemption of preferred stock/units | (310,855) | (1,446,039) | 0 | |
Redemption of Series B preferred stock | 0 | 0 | (145,000) | |
Distributions paid to common stock and unitholders | (158,544) | (117,819) | (75,875) | |
Distributions paid to preferred stock and unitholders | (636) | (636) | (12,071) | |
Contributions from non-controlling member in consolidated entities | 3,870 | 33,996 | 217,795 | |
Distributions to non-controlling member in consolidated entities | (74,836) | (1,303) | (2,013) | |
Payments to satisfy tax withholding | (16,041) | (8,427) | (5,128) | |
Payments of loan costs | (1,307) | (3,992) | (20,680) | |
Net cash provided by financing activities | 33,167 | 334,754 | 1,658,641 | |
Net (decrease) increase in cash and cash equivalents and restricted cash | (6,912) | 36,631 | 36,725 | |
Cash and cash equivalents and restricted cash—beginning of period | 108,192 | 71,561 | 34,836 | |
Cash and cash equivalents and restricted cash—end of period | 101,280 | 108,192 | 71,561 | |
Supplemental disclosure of cash flow information | ||||
Cash paid for interest, net of capitalized interest | 77,234 | 82,491 | 50,208 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Accounts payable and accrued liabilities for real estate investments | (19,587) | (37,364) | (27,972) | |
Reclassification of investment in unconsolidated entities for real estate investments | 7,835 | 0 | 0 | |
Relief of debt in conjunction with sale of real estate | (216,000) | 0 | 0 | |
Proceeds from sale of real estate | 216,000 | 0 | 0 | |
Issuance of common stock in connection with property acquisition | $ 0 | $ 0 | $ 2,100,381 | |
[1] | Represents bad debt expense/recovery, amortization of discount and net origination fees on purchased and originated loans and unrealized loss/gain on ineffective portion of derivative instruments. |
Organization
Organization | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and media and entertainment properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. On April 1, 2015, the Company completed the acquisition of the EOP Northern California Portfolio (“EOP Acquisition”) from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Acquisition consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout Northern California. The total consideration paid for the EOP Acquisition before certain credits, prorations and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. The Company’s portfolio consists of properties located throughout Northern and Southern California and the Pacific Northwest. The following table summarizes the Company’s portfolio as of December 31, 2017 : Segments Number of Properties Square Feet (unaudited) Office 51 13,291,531 Media & Entertainment 3 1,249,927 Total (1) 54 14,541,458 _________________ (1) Includes redevelopment, development and held for sale properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any reference to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). Certain amounts in the consolidated financial statements for the prior periods have been reclassified to conform to the current year presentation. Included in the reclassified amounts are properties held for sale. These amounts are related to 3402 Pico, which was sold on March 21, 2017, Pinnacle I and Pinnacle II, which were sold on November 16, 2017 as well as four other properties, which were classified as held for sale as of December 31, 2017. See Note 3 for details of the properties classified as held for sale. Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, we first evaluate an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the cost or equity method of accounting. In addition, we continually evaluate each legal entity that is not wholly owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2017 , the Company has determined that three joint ventures and our operating partnership met the definition of a VIE. Two of the joint ventures are consolidated entities and one joint venture is a non-consolidated entity. Consolidated Entities On November 16, 2017, the Company sold its 65.0% ownership interest in the single joint venture that owned both Pinnacle I and Pinnacle II. As a result of the disposition, the Company no longer consolidates Pinnacle and Pinnacle II. As of December 31, 2017 , the operating partnership has determined that two of its joint ventures met the definition of a VIE and are consolidated: Property Ownership interest 1455 Market 55.0 % Hill7 55.0 % As of December 31, 2017 , the Company has determined that our operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to these VIEs. Non-consolidated Entities On June 15, 2017, the Company purchased the remaining interest in land at its 11601 Wilshire property. Refer to Note 3 for details. As a result of the purchase, the Company is now consolidating the interest in land. On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The assets of the joint venture consist of notes receivable. As of December 31, 2017 , the Company has determined this joint venture meets the definition of a VIE, however, it is not the primary beneficiary. Due to its significant influence over the non-consolidated entity, the Company accounts for it using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment of $14.2 million is reflected within prepaid expenses and other assets on the Consolidated Balance Sheets which represents the Company’s maximum exposure for loss. The Company’s share of net income or loss from the entity is included within other (income) expense on the Consolidated Statements of Operations. The Company owns 21% of the non-consolidated entity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Investment in Real Estate Properties Acquisitions The Company evaluates each acquisition of real estate to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if (i) the process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce), that is skilled, knowledgeable, and experienced in performing the process (ii) the process cannot be replaced without significant cost, effort, or delay or (iii) the process is considered unique or scarce. Acquisitions of real estate will generally not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered business combinations, assets acquired and liabilities assumed are fair valued at the acquisition date. Assets acquired and liabilities assumed include, but are not limited to, land, building and improvements, intangible assets related to above-and below-market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial accounting for a business combination is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price assignment are made within the measurement period, which typically does not exceed one year, within the Consolidated Balance Sheets. Acquisition-related expenses associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair value of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial below-market term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions and legal and other related costs. Cost Capitalization The Company capitalizes direct construction and development costs, including redevelopment costs, interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. The Company recognized the following capitalized costs: Year Ended December 31, 2017 2016 2015 Capitalized personnel costs $ 10,853 $ 9,347 $ 7,349 Capitalized interest 10,655 11,307 6,516 Operating Properties The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of lease, the amortization of intangible assets and liabilities are accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. Held for sale The Company classifies properties as held for sale when certain criteria set forth in Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale in the Consolidated Balance Sheets for the periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. According to ASC 205, Presentation of Financial Statements , the Company does not present the operating results in net loss from discontinued operations for disposals if they do not represent a strategic shift in the Company’s business. There were no discontinued operations for the years ended December 31, 2017 , 2016 , and 2015. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties. No impairment indicators have been noted and the Company recorded no impairment charges during the years ended December 31, 2017 , 2016 and 2015. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business acquisitions. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. No impairment indicators have been noted during the years ended December 31, 2017 and 2016 , respectively. Goodwill is included in the prepaid expenses and other assets, net line item on the Consolidated Balance Sheets. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. Pursuant to the adoption of ASU 2016-18, the Company included restricted cash with cash and cash equivalents in the Consolidated Statements of Cash Flows, which resulted in an increase of $7.2 million and $0.9 million in the net cash provided by operating activities line item in the Consolidated Statements of Cash Flows for the years ended December 31, 2016 and 2015. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2017 2016 2015 (1) Beginning of period: Cash and cash equivalents $ 83,015 $ 53,551 $ 17,753 Restricted cash 25,177 18,010 17,083 Total $ 108,192 $ 71,561 $ 34,836 End of period: Cash and cash equivalents $ 78,922 $ 83,015 $ 53,551 Restricted cash 22,358 25,177 18,010 Total $ 101,280 $ 108,192 $ 71,561 _____________ (1) Includes restricted cash that was previously included in assets held for sale as of December 31, 2014. Accounts Receivable, net Accounts receivable consist of amounts due for monthly rents and other charges. The Company maintains an allowance for doubtful accounts for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants and operators on an ongoing basis. This evaluation considers industry and economic conditions, property performance, credit enhancements, length of time the receivables are past due, specific identification of uncollectible amounts, historical experience and other relevant factors. Historical experience has been within management’s expectations. The following table represents the Company’s accounts receivable, net as of: December 31, 2017 December 31, 2016 Accounts receivable $ 6,835 $ 8,834 Allowance for doubtful accounts (2,472 ) (1,827 ) Accounts receivable, net (1) $ 4,363 $ 7,007 _____________ (1) Excludes balances related to properties that have been classified as held for sale. Straight-line Rent Receivables, net For straight-line rent amounts, the Company’s assessment is based on amounts estimated to be recoverable over the term of the lease. The Company evaluates the collectability of straight-line rent receivables based on the length of time the related rental receivables are past due, the current business environment and the Company’s historical experience. The following table represents the Company’s straight - line rent receivables, net as of: December 31, 2017 December 31, 2016 Straight-line rent receivables $ 109,457 $ 79,345 Allowance for doubtful accounts — (136 ) Straight-line rent receivables, net (1) $ 109,457 $ 79,209 _____________ (1) Excludes balances related to properties that have been classified as held for sale. Prepaid Expenses and Other Assets, net Prepaid expenses and other assets primarily consists of investments in unconsolidated entities, goodwill and derivative assets. These balances were presented separately on the 2016 Form 10-K, however, these accounts have been reclassified on our Consolidated Balance Sheets to conform to the current year’s presentation. The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2017 December 31, 2016 Investment in unconsolidated entities $ 14,240 $ 37,228 Goodwill 8,754 8,754 Derivative assets 12,586 5,935 Other 25,558 25,297 Prepaid expenses and other assets, net (1) $ 61,138 $ 77,214 _____________ (1) Excludes balances related to properties that have been classified as held for sale. Security Deposits and Prepaid Rent The security deposits and prepaid rent balances were presented separately on the 2016 Form 10-K, however, these accounts have been reclassified on our Consolidated Balance Sheets to conform to the current year’s presentation. The following table represents the Company’s security deposits and prepaid rent as of: December 31, 2017 December 31, 2016 Security deposits $ 36,458 $ 29,837 Prepaid rent 27,573 37,041 Security deposits and prepaid rent (1) $ 64,031 $ 66,878 _____________ (1) Excludes balances related to properties that have been classified as held for sale. Segment Reporting The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties and (ii) media and entertainment properties. The Company evaluates performance based upon net operating income of the combined properties in each segment. The media and entertainment segment is immaterial, and therefore separate income information by segment has not been presented. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources. Revenue Recognition The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. Certain leases provide for additional rents contingent upon a percentage of the tenant’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the base amount or other thresholds. Such revenue is recognized only after the contingency has been removed (when the related thresholds are achieved), which may result in the recognition of rental revenue in periods subsequent to when such payments are received. Other property-related revenue is revenue that is derived from the tenants’ use of lighting, equipment rental, parking, power, HVAC and telecommunications (telephone and Internet). Other property-related revenue is recognized when these items are provided. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. The Company recognizes gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized using the full accrual method when (i) the collectability of the sales price is reasonably assured, (ii) the Company is not obligated to perform significant activities after the sale, (iii) the initial investment from the buyer is sufficient and (iv) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met. Deferred Financing Costs and Debt Discount/Premium Deferred financing costs are amortized over the contractual loan term into interest expense on the Consolidated Statements of Operations. Deferred financing costs, and related amortization, related to the unsecured revolving credit facility and undrawn term loans are presented within prepaid expenses and other assets, net in the Consolidated Balance Sheets. All other deferred financing costs, and related amortization, are included in the notes payable, net line item in the Consolidated Balance Sheets. Debt discounts and premiums are amortized and accreted on a straight-line basis over the contractual loan term, which approximates the effective interest method, into interest expense on the Consolidated Statements of Operations. Discounts are recorded as additional interest expense and premiums are recorded as a reduction to interest expense. Derivative Instruments The Company manages interest rate risk associated with borrowings by entering into derivative instruments. The Company recognizes all derivative instruments on the Consolidated Balance Sheets on a gross basis at fair value. Derivative instruments that are not effective hedges are adjusted to fair value and the changes in fair value are reflected as income or expense. If the derivative instrument is an effective hedge, depending on the nature of the hedge, changes in the fair value are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (loss), which is a component of equity. The ineffective portion of a derivative instrument’s change in fair value is immediately recognized in earnings. Stock-Based Compensation Compensation cost of restricted stock, restricted stock units and performance units under the Company’s equity incentive award plans are accounted for under ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company accounts for forfeitures of awards as they occur. Income Taxes The Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market and Hill7 properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with its taxable year ended December 31, 2010. The Company believes that it has operated in a manner that has allowed the Company to qualify as a REIT for federal income tax purposes commencing with such taxable year, and the Company intends to continue operating in such manner. To qualify as a REIT, the Company is required to distribute at least 90% of its net taxable income, excluding net capital gains, to the Company’s stockholders and to meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that it continues to qualify for taxation as a REIT, the Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of its taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. Unless entitled to relief under specific statutory provisions, the Company would be ineligible to elect to be treated as a REIT for the four taxable years following the year for which the Company loses its qualification. It is not possible to state whether in all circumstances the Company would be entitled to this statutory relief. The Company may acquire direct or indirect interests in one or more Subsidiary REITs. A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to the Company. If a subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to federal income tax, (ii) shares in such REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless the Company could avail itself of certain relief provisions. The Company believes that its operating partnership is properly treated as a partnership for federal income tax purposes. As a partnership, the Company’s operating partnership is not subject to federal income tax on its income. Instead, each of its partners, including the Company, is allocated, and may be required to pay tax with respect to, its share of the operating partnership’s income. As such, no provision for federal income taxes has been included for the operating partnership. The Company has elected, together with one of the Company’s subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. The Company’s TRS did not have significant tax provisions or deferred income tax items for 2017 , 2016 or 2015 . The Company is subject to the statutory requirements of the states in which it conducts business. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2017 , the Company has not established a liability for uncertain tax positions. The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2012. Generally, the Company has assessed its tax positions for all open years, which include 2012 to 2016, and concluded that there are no material uncertainties to be recognized. Fair Value of Assets and Liabilities Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significa |
Investment in Real Estate
Investment in Real Estate | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2017 December 31, 2016 Land $ 1,302,907 $ 1,155,037 Building and improvements 4,480,993 4,069,005 Tenant improvements 411,706 354,940 Furniture and fixtures 8,608 4,264 Property under development 219,227 295,234 Investment in real estate, at cost (1) $ 6,423,441 $ 5,878,480 _____________ (1) Excludes balances related to properties that have been classified as held for sale. Acquisitions The following table summarizes the information on the acquisitions completed in 2017 and 2016: Property Submarket Segment Month of Acquisition Square Feet Purchase Price (1) (in millions) Sunset Las Palmas Studios (2) Hollywood Media and Entertainment May 2017 369,000 $ 200.0 11601 Wilshire land (3) West Los Angeles Office June 2017 N/A 50.0 6666 Santa Monica (4) Hollywood Media and Entertainment June 2017 4,150 3.2 Total acquisitions in 2017 373,150 $ 253.2 11601 Wilshire (5) West Los Angeles Office July 2016 500,475 $ 311.0 Hill7 (6) South Lake Union Office October 2016 285,680 179.8 Page Mill Hill (7) Palo Alto Office December 2016 182,676 150.0 Total acquisitions in 2016 968,831 $ 640.8 _____________ (1) Represents purchase price before certain credits, prorations and closing costs. (2) The property consists of stages, production office and support space on 15 acres near Sunset Gower Studios and Sunset Bronson Studios. The purchase price above does not include equipment purchased by the Company for $2.8 million , which was transacted separately from the studio acquisition. In April 2017, the Company drew $150.0 million under the unsecured revolving credit facility to fund the acquisition. (3) On July 1, 2016 the Company purchased a partial interest in land held as a tenancy in common in conjunction with its acquisition of the 11601 Wilshire property. The land interest held as a tenancy in common was accounted for as an equity method investment. On June 15, 2017, the Company purchased the remaining interest, which was fair valued and allocated to land and building. (4) This parcel is adjacent to the Sunset Las Palmas Studios property. (5) Previously owned by an affiliate of Blackstone, the property has served as the Company’s corporate headquarters since its IPO. The Company funded this acquisition with proceeds from the unsecured revolving credit facility. (6) The Company purchased the property through a joint venture with the Canadian Pension Plan Investment Board. The Company has a 55% ownership interest in the consolidated joint venture. In conjunction with the acquisition, the joint venture closed a secured non-recourse loan in the amount of $101.0 million . (7) The Company funded this acquisition with proceeds from the unsecured revolving credit facility. The Company’s acquisitions in 2017 did not meet the definition of a business and were therefore accounted for as asset acquisitions. In accordance with asset acquisitions, the purchase price includes capitalized acquisition costs. The following table represents the Company’s final aggregate purchase price accounting, as of the respective acquisition dates, for each of the Company’s acquisitions completed in 2017: 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 _____________ (1) The purchase price allocation includes equipment purchased by the Company of $2.8 million . (2) Represents weighted-average amortization period of 1.2 years. The following table represents the final purchase price accounting for each of the Company’s acquisitions completed in 2016: 11601 Wilshire Hill7 Page Mill Hill Total Investment in real estate, net $ 292,382 $ 173,967 $ 131,402 $ 597,751 Land interest (1) 7,836 — — 7,836 Above-market leases (2) 167 — 307 474 Below-market ground leases (3) 212 — 12,125 12,337 Deferred leasing costs and lease intangibles (4) 13,884 7,617 14,697 36,198 Below-market leases (5) (6,562 ) (1,417 ) (8,636 ) (16,615 ) Net asset and liabilities assumed $ 307,919 $ 180,167 $ 149,895 $ 637,981 _____________ (1) Represents the fair value of the Company’s interest in the land which was included in investment in unconsolidated entities in the Consolidated Balance Sheets at December 31, 2016. On June 15, 2017, the Company purchased the remaining interest, which was fair valued and allocated to land and building. Refer to the 2017 acquisitions above for details. (2) Represents weighted-average amortization period of 5.4 years. (3) Represents weighted-average amortization period of 33.2 years. (4) Represents weighted-average amortization period of 5.8 years. (5) Represents weighted-average amortization period of 6.4 years. Dispositions The following table summarizes the properties sold in 2017, 2016 and 2015. These properties were considered non-strategic to the Company’s portfolio: Property Month of Disposition Square Feet Sales Price (1) (in millions) 222 Kearny February 2017 148,797 $ 51.8 3402 Pico March 2017 50,687 35.0 Pinnacle I and Pinnacle II (2) November 2017 623,777 350.0 Total dispositions in 2017 823,261 $ 436.8 Bayhill Office Center January 2016 554,328 $ 215.0 Patrick Henry April 2016 70,520 19.0 One Bay Plaza June 2016 195,739 53.4 12655 Jefferson November 2016 100,756 80.0 Total dispositions in 2016 (3) 921,343 $ 367.4 First Financial March 2015 223,679 $ 89.0 Bay Park Plaza September 2015 260,183 90.0 Total dispositions in 2015 (4) 483,862 $ 179.0 _____________ (1) Represents gross sales price before certain credits, prorations and closing costs. (2) The consolidated joint venture that owned Pinnacle I and Pinnacle II sold the properties to affiliates of Blackstone. In conjunction with the sale, the $216.0 million debt secured by these properties was assumed by the purchasers. (3) Excludes the sale of an option to acquire land at 9300 Culver on December 6, 2016. (4) Excludes the 45% ownership interest in 1455 Market completed on January 7, 2015. The disposition of these properties resulted in gains of $45.6 million , $ 30.4 million and $30.5 million for the years ended December 31, 2017 , 2016 and 2015, respectively. Included in gains on sale of real estate line item on the Consolidated Statements of Operations in 2016 is a gain of $7.5 million related to a sale of an option to purchase land at 9300 Culver. Held for sale As of December 31, 2017 , the Company had four properties that met the criteria to be classified as held for sale. The following table summarizes properties classified as held for sale as of December 31, 2017: Property Purchase and Sale Executed Square Feet Sales Price (1) (in millions) 2180 Sand Hill November 2017 45,613 $ 82.5 2600 Campus Drive (building 6 of Peninsula Office Park) December 2017 63,050 22.5 Embarcadero Place December 2017 197,402 136.0 9300 Wilshire December 2017 61,422 13.8 Total 367,487 $ 254.8 ____________ (1) Represents gross sales price before certain credits, prorations and closing costs. As of December 31, 2016 , the Company had eight properties that met the criteria to be classified as held for sale which includes the properties sold during 2017. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of: December 31, 2017 December 31, 2016 ASSETS Investment in real estate, net $ 204,895 $ 580,261 Accounts receivable, net 85 183 Straight-line rent receivables, net 2,234 8,849 Deferred leasing costs and lease intangible assets, net 4,063 23,078 Prepaid expenses and other assets, net 58 2,803 Assets associated with real estate held for sale $ 211,335 $ 615,174 LIABILITIES Notes payable, net $ — $ 214,684 Accounts payable and accrued liabilities 782 8,816 Lease intangible liabilities, net 95 6,890 Security deposits and prepaid rent 1,339 6,233 Liabilities associated with real estate held for sale $ 2,216 $ 236,623 |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Deferred Leasing Costs and Lease Intangibles, net | Deferred Leasing Costs and Lease Intangibles, net The following summarizes the Company’s deferred leasing costs and lease intangibles, net as of December 31, 2017 December 31, 2016 Above-market leases $ 19,222 $ 23,075 Accumulated amortization (15,731 ) (12,645 ) Above-market leases, net 3,491 10,430 Deferred leasing costs and in-place lease intangibles 311,599 343,807 Accumulated amortization (132,426 ) (129,830 ) Deferred leasing costs and in-place lease intangibles, net 179,173 213,977 Below-market ground leases 68,388 68,601 Accumulated amortization (6,498 ) (4,079 ) Below-market ground leases, net 61,890 64,522 Deferred leasing costs and lease intangible assets, net (1) $ 244,554 $ 288,929 Below-market leases $ 105,233 $ 127,950 Accumulated amortization (56,265 ) (55,689 ) Below-market leases, net 48,968 72,261 Above-market ground leases 1,095 1,095 Accumulated amortization (133 ) (89 ) Above-market ground leases, net 962 1,006 Lease intangible liabilities, net (1) $ 49,930 $ 73,267 _____________ (1) Excludes balances related to properties that have been classified as held for sale. The Company recognized the following amortization related to deferred leasing costs and lease intangibles: For the Year Ended December 31, 2017 2016 2015 Above-market leases (1) $ (6,953 ) $ (11,259 ) $ (12,534 ) Below-market leases (1) 25,015 30,993 34,607 Deferred leasing costs and in-place lease intangibles (2) (72,883 ) (84,492 ) (91,965 ) Above-market ground leases (3) 43 43 46 Below-market ground leases (3) (2,548 ) (2,203 ) (1,688 ) _____________ (1) Amortization is recorded in revenues in the Consolidated Statements of Operations. (2) Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. (3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2017 : For the Year Ended December 31, Above-market lease Deferred lease cost and in-place lease intangibles Below-market ground lease Below-market lease Above-market ground lease 2018 $ (1,529 ) $ (41,300 ) $ (2,410 ) $ 14,713 $ 43 2019 (1,014 ) (31,533 ) (2,410 ) 11,317 43 2020 (466 ) (22,966 ) (2,410 ) 8,514 43 2021 (327 ) (18,224 ) (2,410 ) 6,084 43 2022 (106 ) (13,068 ) (2,410 ) 3,575 43 Thereafter (49 ) (52,082 ) (49,840 ) 4,765 747 Total (1) $ (3,491 ) $ (179,173 ) $ (61,890 ) $ 48,968 $ 962 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Notes Payable, net
Notes Payable, net | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable, net | Notes Payable, net The following table sets forth information with respect to the amounts included in notes payable, net as of: December 31, 2017 December 31, 2016 Interest Rate (1) Contractual Maturity Date UNSECURED NOTES PAYABLE Unsecured Revolving Credit Facility (2) $ 100,000 $ 300,000 LIBOR + 1.15% to 1.85% 4/1/2019 (3) 5-Year Term Loan due April 2020 (2)(4) 300,000 450,000 LIBOR + 1.30% to 2.20% 4/1/2020 5-Year Term Loan due November 2020 (2) 75,000 175,000 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 Registered Senior Notes (7) 400,000 — 3.95% 11/1/2027 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 (8)(9) 98,392 100,409 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 (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (8) 27,418 27,929 5.32% 3/11/2022 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (11) 101,000 101,000 3.38% 11/6/2028 Pinnacle I (12) — 129,000 3.95% 11/7/2022 Pinnacle II (12) — 87,000 4.30% 6/11/2026 TOTAL SECURED NOTES PAYABLE 464,311 682,839 TOTAL NOTES PAYABLE 2,439,311 2,707,839 Held for sale balances (12) — (216,000 ) Unamortized deferred financing costs and loan discounts (13) (17,931 ) (18,513 ) TOTAL NOTES PAYABLE, NET $ 2,421,380 $ 2,473,326 _____________ (1) Interest rate with respect to indebtedness is calculated on the basis of a 360 -day year for the actual days elapsed. Interest rates are as of December 31, 2017 , which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness. (2) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2017 , no such election had been made. (3) The maturity date may be extended once for an additional one -year term. (4) In July 2016, $300.0 million of the term loan was effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps. See Note 6 for details. (5) In July 2016, the outstanding balance of the term loan was effectively fixed at 3.36% % to 4.31% per annum through the use of two interest rate swaps. See Note 6 for details. (6) In June 2016, the outstanding balance of the term loan was effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 6 for details. (7) On October 2, 2017, the Company completed an underwritten public offering of $400.0 million of senior notes, which were issued at 99.815% of par. (8) Monthly debt service includes annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (9) On February 1, 2018, the Company repaid the full outstanding balance of the mortgage loan secured by our Rincon Center property. (10) This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71 % per annum through use of an interest rate swap. See Note 6 for details. (11) The Company has a 55% ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principle payments with a balloon payment at maturity. (12) On November 16, 2017, the Company sold its ownership interest in the consolidated joint venture that owned Pinnacle I and Pinnacle II. The debt balances related to these properties were classified as held for sale at December 31, 2016. (13) Excludes deferred financing costs related to properties held for sale and amounts related to establishing the Company’s unsecured revolving credit facility. Current Year Activity On November 16, 2017, the consolidated joint venture that owned Pinnacle I and Pinnacle II sold the properties to certain affiliates of Blackstone for $350.0 million , before credits, prorations and closing costs, including the assumption of $216.0 million of secured notes payable. The loan balance related to these properties as of December 31, 2016 is reflected in liabilities associated with real estate held for sale in the Consolidated Balance Sheets. The Company used proceeds from the sale and cash on hand to repay $100.0 million of the Company's 5 -year term loan due November 2020. On October 2, 2017, the operating partnership completed an underwritten public offering of $400.0 million senior notes due November 1, 2027. The net proceeds from the offering, after deducting the underwriting discounts and offering expenses, were approximately $396.7 million and was used to repay $150.0 million of the Company’s 5 -year term loan due April 2020 with the remainder of the net proceeds, together with cash on hand, used to repay $250.0 million outstanding under the Company’s unsecured revolving credit facility. Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, such as in the case of the project financing for Sunset Gower Studios and Sunset Bronson Studios, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. Loan agreements include events of default that the Company believes are usual for loan and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans. Certain loan agreements require that some or all receipts collected from properties are deposited in lockbox accounts under the control of the lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. Included in restricted cash on the Company’s Consolidated Balance Sheets at December 31, 2017 and December 31, 2016 are lockbox and reserve funds as follows: Property December 31, 2017 December 31, 2016 Rincon Center $ 14,220 $ 16,291 Element LA 3,581 2,627 Hill7 2,392 1,643 10950 Washington 1,406 1,249 Pinnacle I — 1,811 Pinnacle II — 1,382 Total $ 21,599 $ 25,003 The following table provides information regarding the Company’s future minimum principal payments due on the Company’s notes payable (before the impact of extension options, if applicable) as of December 31, 2017 : For the Year Ended December 31, Annual Principal Payments 2018 $ 98,930 2019 105,569 2020 440,095 2021 632 2022 500,085 Thereafter 1,294,000 Total $ 2,439,311 Senior Unsecured Notes Payable Registered Senior Notes On October 2, 2017, our operating partnership completed an underwritten public offering of $400.0 million in senior notes due November 1, 2027. The notes were issued at 99.815% of par, with a coupon of 3.95% . The notes are fully and unconditionally guaranteed by the Company. Term Loan Agreement On November 17, 2015, the operating partnership entered into a term loan credit agreement with a group of lenders for an unsecured $175.0 million 5 -year delayed draw term loan with a maturity date of November 2020 (“ 5 -Year Term Loan due November 2020”) and an unsecured $125.0 million 7 -year delayed draw term loan with a maturity date of November 2022 (“ 7 -Year Term Loan due November 2022”). These term loans were fully drawn on May 3, 2016. Interest on the term loan agreement is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) a specified base rate plus the applicable base rate margin, dependent on the operating partnership’s leverage ratio. The applicable LIBOR margin will range from 1.30% to 2.20% for the 5 -Year Term Loan due November 2020, depending on our Leverage Ratio (as defined in the term loan agreement) and 1.60% to 2.55% for the 7 -Year Term Loan due November 2022, depending on our Leverage Ratio (as defined in the term loan agreement). Beginning on February 13, 2016, each term loan is subject to an unused commitment fee of .20% . The operating partnership has the right to terminate or reduce unused commitments under either term loan in the term loan agreement without penalty or premium. Subject to the satisfaction of certain conditions, the operating partnership has the right to increase the availability of either or both of the term loans so long as the aggregate commitments under both term loans do not exceed $475.0 million. If the Company obtains a credit rating for the Company’s senior unsecured long-term indebtedness, the operating partnership may make an irrevocable election to change the interest rate. During 2016, its senior unsecured long-term indebtedness was assigned an investment grade rating. The Company has not made the credit rating election. Credit Facility Agreement The operating partnership maintains and periodically amends its credit facility agreement with a group of lenders. On April 1, 2015, the agreement was amended and restated to, among other things, (i) extend the maturity date of the unsecured revolving credit facility with a one -year extension option, (ii) increase available revolving credit from $300.0 million to $400.0 million, (iii) increase the five -year term loan from $150.0 million to $550.0 million and extend the maturity date to April 2020 (“ 5 -Year Term Loan due April 2020”) and (iv) add a $350.0 million seven -year term loan with a maturity date of April 2022 (“ 7 -Year Term Loan due April 2022”). On November 17, 2015, the operating partnership amended and restated the credit facility agreement (“Amended and Restated Credit Facility Agreement”) to align certain terms therein with the less restrictive terms of the term loan agreement. The 5 -Year Term Loan due April 2020 and the 7 -Year Term Loan due April 2022 were used towards the EOP Acquisition. The unsecured revolving credit facility is available for various purposes, including payment of redevelopment and development costs incurred in connection with properties owned by the operating partnership or any subsidiary, to finance capital expenditures and the repayment of indebtedness of the Company, the operating partnership and its subsidiaries, to provide for general working capital needs of the Company, the operating partnership and its subsidiaries, and for general corporate purposes of the Company, the operating partnership and its subsidiaries. Interest on the unsecured revolving credit facility is generally to be paid based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) a specified base rate plus the applicable base rate margin, dependent on the operating partnership’s leverage ratio. Unused amounts under the Amended and Restated Credit Facility Agreement are not subject to a separate fee. Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the availability of the credit facility agreement so long as the aggregate commitments under the unsecured revolving credit facility do not exceed $2.0 billion. If the Company obtains a credit rating for the Company’s senior unsecured long-term indebtedness, the operating partnership may make an irrevocable election to change the interest rate and facility fee. During 2016, our senior unsecured long-term indebtedness was assigned an investment grade rating. The Company has not made the credit rating election. The operating partnership continues to be the borrower under the Amended and Restated Credit Facility Agreement, and the Company and all subsidiaries that own unencumbered properties will continue to provide guarantees unless the Company obtains and maintains a credit rating of at least BBB- from S&P or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. The following table summarizes borrowing capacity and outstanding borrowings under the unsecured revolving credit facility as of: December 31, 2017 December 31, 2016 Outstanding borrowings (1) $ 100,000 $ 300,000 Remaining borrowing capacity (1) 300,000 100,000 Total borrowing capacity $ 400,000 $ 400,000 Interest rate (2) LIBOR + 1.15% to 1.85% Facility fee-annual rate (2) 0.20% or 0.35% Contractual maturity date (3) 4/1/2019 _________________ (1) On January 30, 2018, the Company borrowed an additional $100.0 million bringing the total outstanding borrowings to $200.0 million . (2) The rate is based on the operating partnership’s leverage ratio. (3) The maturity date may be extended once for an additional one -year term. Guaranteed Senior Notes On November 16, 2015, the operating partnership entered into a note purchase agreement with various purchasers, which provides for the private placement of $425.0 million of guaranteed senior notes by the operating partnership, of which (i) $110.0 million are designated as 4.34% Series A guaranteed senior notes due January 2, 2023 (the “Series A Notes”), (ii) $259.0 million are designated as 4.69% Series B guaranteed senior notes due December 16, 2025 (the “Series B Notes”) and (iii) $56.0 million are designated as 4.79% Series C guaranteed senior notes due December 16, 2027 (the “Series C Notes”). These notes were issued on December 16, 2015 and upon issuance, the notes pay interest semi-annually on the 16th day of June and December in each year until their respective maturities. On July 6, 2016, the Company entered into a private placement of debt for $150.0 million of 3.98% guaranteed senior notes due July 6, 2026 (the “Series D Notes”). Upon issuance, the notes pay interest semi-annually on the 6th day of January and July in each year until maturity. The Company also secured an additional $ 50.0 million of funds from a private placement of 3.66% guaranteed senior notes due September 15, 2023 (the “Series E Notes”), which were drawn on September 15, 2016. Upon issuance, the notes pay interest semi-annually on the 15th day of March and September in each year until maturity. The operating partnership may prepay at any time all or, from time to time, any part of the guaranteed senior notes in an amount not less than 5% of the aggregate principal amount of any series of guaranteed senior notes then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a make-whole premium. The operating partnership’s obligations under guaranteed senior notes will be fully and unconditionally guaranteed by the Company. Subsidiaries of the Company will also issue unconditional guarantees upon the occurrence of certain conditions, including such subsidiaries providing guarantees under the Amended and Restated Credit Facility Agreement, by and among the operating partnership, the financial institutions party thereto, and Wells Fargo Bank, National Association as administrative agent. Debt Covenants The operating partnership’s ability to borrow under the unsecured notes payable remains subject to ongoing compliance with financial and other covenants as defined in their respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants. The following table summarizes existing covenants and their covenant levels, when considering the most restrictive term: Covenant Ratio Covenant Level Leverage ratio less than 60% Unencumbered leverage ratio less than 60% Fixed charge coverage ratio greater than 1.5x Secured indebtedness leverage ratio less than 45% Unsecured interest coverage ratio greater than 2x The operating partnership was in compliance with its financial covenants as of December 31, 2017 . Repayment Guarantees Registered Senior Notes The Company has fully and unconditionally guaranteed the operating partnership’s registered senior notes of $400.0 million due November 1, 2027. Sunset Gower Studios and Sunset Bronson Studios Loan In connection with the loan secured by the Sunset Gower Studios and Sunset Bronson Studios properties, the Company has guaranteed in favor of and promised to pay to the lender 19.5% of the principal payable under the loan in the event the borrower, a wholly-owned entity of the operating partnership, does not do so. At December 31, 2017 , the outstanding balance was $5.0 million , which results in a maximum guarantee amount for the principal under this loan of $1.0 million . Furthermore, the Company agreed to guarantee the completion of the construction improvements, including tenant improvements, as defined in the agreement, in the event of any default of the borrower. If the borrower fails to complete the remaining required work, the guarantor agrees to perform timely all of the completion obligations, as defined in the agreement. As of the date of this filing, there has been no event of default associated with this loan. Other Loans Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. Interest Expense The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations: Year Ended December 31, 2017 2016 2015 Gross interest expense (1) $ 94,660 $ 82,887 $ 52,437 Capitalized interest (10,655 ) (11,307 ) (6,516 ) Amortization of deferred financing costs and loan discount/premium, net 6,032 4,464 4,746 Interest expense $ 90,037 $ 76,044 $ 50,667 _________________ (1) Includes interest on the Company’s notes payable and hedging activities and extinguishment costs related to partial paydowns in our term loans of $1.1 million during the year ended December 31, 2017. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. As of December 31, 2017 and 2016 , the Company had six interest rate swaps with aggregate notional amounts of $839.5 million . These derivatives were designated as effective cash flow hedges for accounting purposes. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. 5 -Year Term Loan due April 2020 and 7 -Year Term Loan due April 2022 On April 1, 2015, the Company effectively hedged $300.0 million of the 5 -Year Term Loan due April 2020 through two interest rate swaps, each with a notional amount of $150.0 million , which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.36% through the loan’s maturity. Therefore, the interest rate is effectively fixed at 2.66% to 3.56% , depending on the operating partnership’s leverage ratio. The unhedged portion bears interest at a rate equal to one-month LIBOR plus 1.30% to 2.20% , depending on the operating partnership’s leverage ratio. The Company also effectively hedged its $350.0 million 7 -Year Term Loan due April 2022 through two interest rate swaps, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.61% through the loan’s maturity. Therefore, the interest rate is effectively fixed at 3.21% to 4.16% , depending on the operating partnership’s leverage ratio. In July 2016, the derivatives described above were amended to include a 0.00% floor to one-month LIBOR and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivatives. Therefore, the effective interest rate increased to a range of 2.75% to 3.65% with respect to $300.0 million of the 5 -Year Term Loan due April 2020 and 3.36% to 4.31% with respect to the 7 -Year Term Loan due April 2022, in each case per annum. The interest rate within the range is based on the operating partnership’s leverage ratio. The amount included in accumulated other comprehensive income (loss) prior to the de-designation is amortized into interest expense over the remaining original terms of the derivatives. The Company recognized an unrealized loss of $70 thousand and $1.4 million during the years ended December 31, 2017 and 2016 , respectively, reflected on the unrealized loss on ineffective portion of derivatives line item on the Consolidated Statement of Operations. There was no recognized unrealized loss or gain during the year ended December 31, 2015 . 7 -Year Term Loan due November 2022 On May 3, 2016, the Company entered into a derivative with respect to $125.0 million of the 7 -Year Term Loan due November 2022. This derivative became effective on June 1, 2016 and swapped one-month LIBOR, which includes a 0.00% floor, to a fixed rate of 1.43% through the loan’s maturity. Met Park North On July 31, 2013, the Company closed a seven -year loan totaling $64.5 million with Union Bank, N.A., secured by the Met Park North property. The loan bears interest at a rate equal to one-month LIBOR plus 1.55% . The full loan is subject to an interest rate contract that swaps one-month LIBOR to a fixed rate of 2.16% through the loan’s maturity on August 1, 2020. Overall The fair market value of derivatives is presented on a gross basis in prepaid and other expenses, net and derivative liabilities line items on the Consolidated Balance Sheets. The derivative assets as of December 31, 2017 and 2016 were $12.6 million and $5.9 million , respectively. The derivative liabilities as of December 31, 2017 and 2016 were $0.3 million and $1.3 million , respectively. The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of December 31, 2017 , the Company expects $1.5 million of unrealized gain included in accumulated other comprehensive loss will be reclassified to interest expense in the next 12 months. |
Future Minimum Base Rents and L
Future Minimum Base Rents and Lease Payments Future Minimum Rents | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents | Future Minimum Base Rents and Lease Payments Future Minimum Rents The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2018 to 2033. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2017 : Year ended Non-cancellable Subject to early termination options Total (1)(2) 2018 $ 476,777 $ 4,002 $ 480,779 2019 445,032 11,775 456,807 2020 376,361 20,232 396,593 2021 315,588 32,772 348,360 2022 246,997 45,437 292,434 Thereafter 805,449 124,383 929,832 Total $ 2,666,204 $ 238,601 $ 2,904,805 _____________ (1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less. (2) Includes properties classified as held for sale as of December 31, 2017. Future Minimum Lease Payments The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2017 : 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 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. Percentage annual rent is gross income multiplied by 24.125%. This lease was prepaid through October 31, 2017. 9300 Wilshire 8/14/2032 The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%. The property related to this ground lease is expected to be sold in the first quarter of 2018. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent. 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. 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 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 gross income multiplied by 24.125%. 3176 Porter (formerly Lockheed) 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent 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%. 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). Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent. 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. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent. 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. Contingent rental expense is recorded in the period in which the contingent event becomes probable. The following table summarizes rental expense for ground leases and a corporate office lease: For the Year Ended December 31, 2017 2016 2015 Contingent rental expense $ 8,775 $ 8,651 $ 3,843 Minimum rental expense 12,412 12,085 9,196 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of December 31, 2017 : For the Year Ended December 31, Ground Leases (1)(2) 2018 $ 14,111 2019 14,161 2020 14,161 2021 14,161 2022 14,161 Thereafter 382,070 Total $ 452,825 _____________ (1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of December 31, 2017 . (2) Balance includes future minimum ground lease obligation for 9300 Wilshire which is expected to be sold in the first quarter of 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 12,586 $ — $ 12,586 $ — $ 5,935 $ — $ 5,935 Derivative liabilities — 265 — 265 — 1,303 — 1,303 _____________ (1) Included in the prepaid expenses and other assets, net line item in the Consolidated Balance Sheets. Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s notes payable as of: December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Unsecured notes payable (1)(2) $ 1,974,278 $ 1,960,560 $ 2,025,000 $ 2,011,210 Secured notes payable (3) 464,311 458,441 682,839 669,924 _____________ (1) Amounts represent notes payable excluding unamortized deferred financing costs. (2) The $400.0 million senior registered notes were issued at a discount. The discount, net of amortization was $722 thousand at December 31, 2017 and is included within unsecured notes payable. (3) Includes balances related to properties that have been classified as held for sale. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2010 Incentive Plan permits the Company’s board of directors (“the Board”) to grant, among other things, restricted stock, restricted stock units and performance-based awards. At our annual meeting of stockholders on May 24, 2017 , stockholders approved an amended and restatement of the 2010 Incentive Plan (the “2010 Plan”), which included an increase in the maximum number of shares that may be issued or awarded. Each restricted share, restricted stock unit and common share issued reduces the share reserve by 5.14 shares. As of December 31, 2017 , 3,961,867 common shares were available for grant under the 2010 Plan. The calculation of shares available for grant is determined after taking into account unvested restricted stock, unvested RSUs, awards under our one-time retention performance-based awards, and awards under our outstanding outperformance programs, assuming the maximum bonus pool eligible ultimately is earned and based on a stock price of $34.25 . The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years . The Board awards time-based restricted shares to employees on an annual basis as part of the employees’ annual compensation. The time-based awards are generally issued in the fourth quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is generally three years . Additionally, certain restricted share awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer. The compensation committee of our Board (“Compensation Committee”) annually adopts a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under our 2010 Plan. With respect to OPP Plan awards granted through 2017 , to the extent an award is earned following the completion of a three -year performance period, 50% of the earned award will vest in full at the end of the three -year performance period and 25% of the earned award will vest in equal annual installments over the two years thereafter, subject to the participant’s continued employment. OPP Plan awards are settled in common stock and in the case of certain executives, awards are settled in performance units in our operating partnership. In February 2017, the Compensation Committee adopted the 2017 OPP Plan. The 2017 OPP Plan is substantially similar to the previous OPP Plans except for (i) the performance period is January 1, 2017 to December 31, 2019 (ii) the maximum bonus pool is $20.0 million and (iii) the two -year post-performance vesting period was replaced with a two -year mandatory holding period upon vesting. In December 2015, the Compensation Committee of the Board awarded a one-time special retention award to certain executives. The grants consist of time-based awards and performance-based awards. The time-based awards vest in equal 25% installments over a four -year period, subject to the participant’s continued employment. The performance-based awards vest over a four -year period, subject to the achievement of applicable performance goals and the participant’s continued employment. Time-Based Awards The stock-based compensation is valued based on the quoted closing price of the Company’s common stock on the applicable grant date and discounted for the hold restriction in accordance with ASC 718. The stock-based compensation is amortized through the final vesting period on a straight-line basis. Forfeitures of awards are recognized as they occur. Performance-Based Awards OPP Plan An award under the OPP Plan is ultimately earned to the extent the Company outperforms a predetermined total shareholder return (“TSR”) goal and/or achieves goals with respect to the outperformance of its peers in a particular REIT index. The ultimate aggregate award cannot exceed the predetermined maximum bonus pool. The following table outlines key components of the 2017 and 2016 OPP Plans: 2017 OPP Plan 2016 OPP Plan Maximum bonus pool, in millions $20.0 $17.5 Performance period 1/1/2017 to 12/31/2019 1/1/2016 to 12/31/2018 The stock-based compensation costs of the OPP Plans were valued in accordance with ASC 718, utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The stock-based compensation is amortized through the final vesting period under a graded vesting expense recognition schedule. Forfeitures of awards are recognized as they occur. The per unit fair value of OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: 2017 2016 2015 Expected price volatility for the Company 24.00% 24.00% 22.00% Expected price volatility for the particular REIT index 17.00% 17.00% 22.00% Risk-free rate 1.47% 1.09% 1.13% Dividend yield 2.30 2.40 1.50 One-Time Retention Awards At the end of each year in the four -year performance period and over the four -year performance period, the ultimate award is earned if the Company outperforms a predetermined TSR goal and/or achieves goals with respect to its outperformance of its peers in a particular REIT index. The stock-based compensation costs were valued in accordance with ASC 718, utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The stock-based compensation is amortized through the final vesting period under a graded vesting expense recognition schedule. Forfeitures of awards are recognized as they occur. The per unit fair value of one-time retention award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: Assumptions Expected price volatility for the Company 23.00% Expected price volatility for the particular REIT index 18.00% Risk-free rate 1.63% Dividend yield 3.20 Summary of Unvested Share Activity The following table summarizes the activity and status of all unvested awards: 2017 2016 2015 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 887,179 $ 31.09 827,950 $ 28.92 543,707 $ 26.43 Granted 918,884 34.37 489,826 30.95 629,504 29.01 Vested (705,508 ) 31.42 (430,597 ) 26.75 (335,544 ) 24.80 Canceled (13,369 ) 32.14 — — (9,717 ) 38.17 Unvested at December 31 1,087,186 $ 33.64 887,179 $ 31.09 827,950 $ 28.92 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2017 918,884 $ 34.37 (705,508 ) $ 24,155 2016 489,826 30.95 (430,597 ) 14,736 2015 629,504 29.01 (335,544 ) 9,606 Share-based Compensation Recorded The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2017 2016 2015 Expensed stock compensation (1) $ 15,079 $ 14,144 $ 8,421 Capitalized stock compensation (2) 836 510 411 Total stock compensation (3) $ 15,915 $ 14,654 $ 8,832 _________________ (1) Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. (2) Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. (3) Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. As of December 31, 2017 , total unrecognized compensation cost related to unvested share-based payments was $31.2 million , and is expected to be recognized over a weighted-average period of two years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share by dividing the net income (loss) available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Hudson Pacific Properties, Inc. calculates diluted earnings per share by dividing the diluted net income (loss) available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based RSUs and unvested OPP awards that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income (loss) available to common stockholders: For the Year Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) available to common stockholders $ 67,587 $ 27,218 $ (16,397 ) Effect of dilutive instruments — 451 — Diluted net income (loss) available to common stockholders $ 67,587 $ 27,669 $ (16,397 ) Denominator: Basic weighted average common shares outstanding 153,488,730 106,188,902 85,927,216 Effect of dilutive instruments (1) 394,084 4,180,153 — Diluted weighted average common shares outstanding 153,882,814 110,369,055 85,927,216 Basic earnings per common share $ 0.44 $ 0.26 $ (0.19 ) Diluted earnings per common share $ 0.44 $ 0.25 $ (0.19 ) _____________ (1) The Company includes unvested awards and convertible common units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The operating partnership calculates basic earnings per share by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. The operating partnership calculates diluted earnings per share by dividing the diluted net income available to common unitholders for the period by the weighted average number of common units and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based RSUs and unvested OPP awards that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income (loss) available to common unitholders: For the Year Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) available to common unitholders $ 67,962 $ 33,066 $ (38,366 ) Effective of dilutive instruments — 451 — Diluted net income (loss) available to common unitholders $ 67,962 $ 33,517 $ (38,366 ) Denominator: Basic weighted average common units outstanding 154,276,773 145,595,246 128,948,077 Effect of dilutive instruments (1) 394,084 1,144,000 — Diluted weighted average common units outstanding 154,670,857 146,739,246 128,948,077 Basic earnings per common unit $ 0.44 $ 0.23 $ (0.30 ) Diluted earnings per common unit $ 0.44 $ 0.23 $ (0.30 ) _____________ (1) The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Equity | Equity The table below presents the effect of the Company’s derivatives on accumulated other comprehensive income (“OCI”): Hudson Pacific Properties, Inc. Stockholder’s Equity Non-controlling interests Total Equity Balance at January 1, 2015 $ (2,443 ) $ (218 ) $ (2,661 ) Unrealized loss recognized in OCI due to change in fair value (4,976 ) (2,687 ) (7,663 ) Loss reclassified from OCI into income (as interest expense) 6,338 3,922 10,260 Net change in OCI 1,362 1,235 2,597 Balance at December 31, 2015 (1,081 ) 1,017 (64 ) Unrealized loss recognized in OCI due to change in fair value 4,122 (6,989 ) (2,867 ) Loss reclassified from OCI into income (as interest expense) 6,455 2,354 8,809 Net change in OCI 10,577 (4,635 ) 5,942 Balance at December 31, 2016 9,496 (3,618 ) 5,878 Unrealized loss recognized in OCI due to change in fair value 3,011 18 3,029 Loss reclassified from OCI into income (as interest expense) 4,342 27 4,369 Net change in OCI 7,353 45 7,398 Reclassification related to redemption of common units in the operating partnership (3,622 ) 3,622 — Balance at December 31, 2017 $ 13,227 $ 49 $ 13,276 Non-controlling Interests Common units in the operating partnership Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of the Company’s common stock in exchange for common units on a one-for-one basis. The following table summarizes the ownership of common units, excluding unvested restricted units as of: December 31, 2017 December 31, 2016 December 31, 2015 Company-owned common units in the operating partnership 155,602,508 136,492,235 89,153,780 Company’s ownership interest percentage 99.6 % 93.5 % 61.3 % Non-controlling common units in the operating partnership (1) 569,045 9,450,620 56,296,315 Non-controlling ownership interest percentage (1) 0.4 % 6.5 % 38.7 % _____________ (1) Represents common units held by certain of the Company’s executive officers and directors, certain of their affiliates and other outside investors. The following table summarizes the activity related to common units from January 1, 2016 to December 31, 2017 : Non-controlling interest in common units Balance at January 1, 2016 56,296,315 May redemption (1) (10,117,223 ) July redemption (1) (19,195,373 ) November redemption (1) (17,533,099 ) Balance at December 31, 2016 9,450,620 January redemption (1) (8,881,575 ) Balance at December 31, 2017 569,045 _____________ (1) The common unitholders requested the operating partnership repurchase common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemptions using the proceeds from registered underwritten public offering of common stock. Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one -for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one -for-one basis. 6.25% Series A cumulative redeemable preferred units of the operating partnership There are 407,066 Series A preferred units of partnership interest in the operating partnership, or Series A preferred units, which are not owned by the Company. These Series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock, after June 29, 2013. For a description of the conversion and redemption rights of the Series A preferred units, please see “Description of the Partnership Agreement of Hudson Pacific Properties, L.P. — Material Terms of Our Series A Preferred Units” in the Company’s June 23, 2010 Prospectus. 8.375% Series B cumulative redeemable preferred stock 5,800,000 shares of 8.375% Series B cumulative redeemable preferred stock of Hudson Pacific Properties, Inc., with a liquidation preference of $25.00 per share, $0.01 par value per share, were outstanding in 2014 and until they were redeemed in 2015. Dividends on the Series B preferred stock were cumulative from the date of original issue and payable quarterly on or about the last calendar day of each March, June, September and December at the rate of 8.375% per annum of its $25.00 per share liquidation preference. On December 10, 2015, the Company redeemed its Series B preferred stock in whole for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends to, but not including, the date of redemption. During the year ended December 31, 2015, the Company recognized a non-recurring non-cash allocation of additional loss for purposes of computing earnings per share of $6.0 million as a reduction to net income available to common stockholders for the Company and common unitholder for the operating partnership for the original issuance costs related to the Series B preferred stock. The following table reconciles the net income (loss) allocated to common stock and operating partnership units on the Consolidated Statements of Equity to the common stock and the common unit net income (loss) allocation on the Consolidated Statements of Operations for the years ended: Hudson Pacific Properties, Inc. Hudson Pacific Properties, L.P. 2017 2016 2015 2017 2016 2015 Net income (loss) allocation for common stock/units on the Consolidated Statements of Equity/Capital $ 68,590 $ 27,984 $ (10,071 ) $ 68,965 $ 33,832 $ (32,040 ) Net income attributable to participating securities (1,003 ) (766 ) (356 ) (1,003 ) (766 ) (356 ) Series B transaction costs allocation — — (5,970 ) — — (5,970 ) Net income (loss) allocation for common stock/units on the Consolidated Statements of Operations $ 67,587 $ 27,218 $ (16,397 ) $ 67,962 $ 33,066 $ (38,366 ) Common Stock Activity The Company has remained capitalized since the initial public offerings through public offerings, its note purchase agreement and continuous offerings under our at-the-market, or ATM, program. The following table summarizes the common stock offering in 2015, 2016 and 2017: Number of Common Shares January 20, 2015 (1) 12,650,000 April 1, 2015 (2) 8,626,311 May 16, 2016 (3) 10,117,223 July 21, 2016 (3) 19,195,373 November 28, 2016 (3) 17,533,099 January 10, 2017 (3) 8,881,575 March 3, 2017 (4) 9,775,000 _____________ (1) Represents a common stock offering of 11,000,000 shares of common stock and the exercise of the underwriters’ option to purchase an additional 1,650,000 shares of our common stock at the public offering price of $31.75 per share. Total proceeds from the public offering, after underwriters’ discount, were approximately $385.6 million (before transaction costs). (2) Represents a common stock issuance in connection with the EOP Acquisition. The issuance of common stock is part of the consideration paid. (3) Proceeds from the offering were used to repurchase common units in the operating partnership. (4) Represents a common stock offering of 9,775,000 shares of common stock. Proceeds from the offering were used to fully repay a $255.0 million balance outstanding under its unsecured revolving credit facility. The Company’s ATM program permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during 2017. A cumulative total of $20.1 million has been sold as of December 31, 2017 . The following table summarizes the ATM activity: 2017 2016 2015 Shares of common stock sold during the period — 165,000 — Common stock price ranges N/A $33.54 to $33.95 N/A Share repurchase program On January 20, 2016, the Board authorized a share repurchase program to buy up to $100.0 million of the outstanding common stock of Hudson Pacific Properties, Inc. No share repurchases have been made through December 31, 2017 . Dividends During the year ended December 31, 2017 , the Company declared dividends on its common stock and non-controlling interest in common units in the operating partnership of $1.000 per share and unit. The Company also declared dividends on its Series A preferred partnership interests of $1.5625 per unit. The fourth quarter 2017 dividends were paid on December 28, 2017 to stockholders and unitholders of record on December 18, 2017 . Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation. The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distributions Per Share Total Non-qualified Qualified Capital Gain Distributions (1) Return of Capital 3/20/2017 3/30/2017 $ 0.25000 $ 0.14633 $ 0.14633 $ — $ 0.04023 $ 0.06345 6/20/2017 6/30/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 9/19/2017 9/29/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 12/18/2017 12/28/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 Totals $ 1.00000 $ 0.58532 $ 0.58532 $ — $ 0.16092 $ 0.25380 100 % 58.532 % 16.09 % 25.38 % _____________ (1) $0.03000 of the $0.04023 capital gain distributions should be characterized as unrecaptured Section 1250 gain. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain executive officers, effective January 1, 2016, that provide for various severance and change in control benefits and other terms and conditions of employment. Lease and Subsequent Purchase of Corporate Headquarters from Blackstone On July 26, 2006, the Company’s predecessor, Hudson Capital, LLC, entered into a lease agreement and subsequent amendments with landlord Trizec Holdings Cal, LLC (an affiliate of Blackstone) for the Company’s corporate headquarters at 11601 Wilshire. The Company amended the lease to increase its occupancy to 40,120 square feet commencing on September 1, 2015. On December 16, 2015, the Company entered into an amendment of that lease to expand the space to approximately 42,371 square feet and to extend the term by an additional three years, to a total of ten years, through August 31, 2025. On July 1, 2016, the Company purchased the 11601 Wilshire property from affiliates of Blackstone for $311.0 million (before credits, prorations and closing costs). Michael Nash, a director on the Board, is a senior managing director of an affiliate of Blackstone. Disposal of Pinnacle I and Pinnacle II to certain affiliates of Blackstone On November 16, 2017, the consolidated joint venture that owned Pinnacle I and Pinnacle II sold the properties to certain affiliates of Blackstone for $350.0 million , before credits, prorations and closing costs, including the assumption of $216.0 million of secured notes payable. Michael Nash, a director on the Board, is a senior managing director of an affiliate of Blackstone. Disposal of 222 Kearny to certain affiliates of Farallon Funds On February 14, 2017, the Company sold its 222 Kearny property to a joint venture, a partner of which is an affiliate of the Farallon Funds. Richard B. Fried, a director on the Board, is a managing member of the Farallon Funds. JMG Capital Lease at 11601 Wilshire JMG Capital Management LLC leases approximately 6,638 square feet at the Company’s 11601 Wilshire property pursuant to an eight -year lease at an aggregate rate of approximately $279 thousand annualized rent per year. Jonathan M. Glaser, a director on the Board, is the founder and managing member of JMG Capital Management LLC. JMG Capital Management LLC was a tenant of the property at the time it was purchased by the Company in 2016. During 2017, JMG Capital Management LLC assigned the lease to a third party and as a result is no longer a lessee at our 11601 Wilshire property as of December 31, 2017. Agreement Related to EOP Acquisition On April 1, 2015, the Company completed the EOP Acquisition from certain affiliates of Blackstone, which consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the Northern California region. The total consideration paid for the EOP Acquisition before certain credits, prorations and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. In connection with the EOP Acquisition, the Company, the operating partnership and Blackstone entered into a stockholders agreement, which conferred Blackstone certain rights, including the right to nominate up to three of the Company’s directors. Additionally, the Company entered into a registration rights agreement with Blackstone providing for customary registration rights with respect to the equity consideration paid in the EOP Acquisition. Following a common stock offering and common unit repurchase on January 10, 2017, the stockholders agreement and the registration rights agreement automatically terminated on that date. Common Stock Offerings and Common Unit Redemptions On January 10, 2017, the Company, Blackstone and the Farallon Funds completed a public offering of 18,673,808 shares of common stock, consisting of 8,881,575 shares offered by the Company and 9,792,233 shares offered by the selling stockholders. The offering generated net proceeds for the Company and the selling stockholders of approximately $310.9 million and $342.7 million , respectively, before expenses. The Company used the net proceeds that it received from the offering to redeem 8,881,575 common units held by Blackstone and the Farallon Funds. The Company did not receive any proceeds from the sale of the common stock by the selling stockholders in the offerings described above but it paid approximately half of the expenses of the offerings with respect to the shares of common stock sold by the Farallon Funds and all of the expenses with respect to the shares of common stock sold by Blackstone, in each case, other than underwriting discounts, which were borne by the selling stockholders. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of December 31, 2017 , the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Concentrations As of December 31, 2017 , 90% of the Company’s properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. A significant portion of the Company’s rental revenue is derived from tenants in the media and entertainment and technology industries. As of December 31, 2017 , approximately 16% and 34% of rentable square feet were related to the tenants in the media and entertainment and technology industries, respectively. As of December 31, 2017 , the Company’s 15 largest tenants represented approximately 29% of its rentable square feet and no single tenant accounted for more than 10% . Letters of Credit As of December 31, 2017 , the Company has outstanding letters of credit totaling approximately $2.5 million under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements. |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The tables below present selected quarterly information for 2017 and 2016 for the Company: For the Three Months Ended (1) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Total revenues $ 189,333 $ 190,021 $ 180,500 $ 168,285 Income from operations 43,832 36,160 28,108 28,503 Net income 48,944 14,510 6,954 24,153 Net income attributable to the Company’s stockholders 32,455 11,064 3,553 20,515 Net income attributable to common stockholders’ per share—basic 0.21 0.07 0.02 0.14 Net income attributable to common stockholders’ per share—diluted 0.21 0.07 0.02 0.14 For the Three Months Ended (1) December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Total revenues $ 167,198 $ 164,583 $ 154,321 $ 153,537 Income from operations 26,845 23,740 19,811 19,011 Net income 28,530 5,217 4,035 5,976 Net income attributable to the Company’s stockholders 22,279 1,847 839 2,253 Net income attributable to common stockholders’ per share—basic 0.18 0.02 0.01 0.03 Net income attributable to common stockholders’ per share— diluted 0.18 0.02 0.01 0.03 _____________ (1) The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Financing On January 23, 2018, the Company borrowed an additional $100.0 million under its unsecured revolving credit facility. On February 1, 2018, the Company used proceeds from the draw to pay in full the debt secured by our Rincon Center property; this loan was expected to mature in May 2018. Dispositions On January 25, 2018 , the Company sold its Embarcadero Place property for $136.0 million (before credits, prorations and closing costs). On January 31, 2018 , the Company sold its 2600 Campus Drive (building 6 of Peninsula Office Park) property for $22.5 million (before credits, prorations and closing costs). Hudson Pacific Properties, Inc. 2018 Outperformance Program On February 14, 2018, the Compensation Committee adopted the 2018 Outperformance Program (“2018 OPP”) under our 2010 Plan. The 2018 OPP authorizes grants of incentive awards linked to our absolute and relative TSR over the performance period beginning on January 1, 2018 and ending on the earlier to occur of December 31, 2020 or the date on which we experience a change in control. Each 2018 OPP award confers a percentage participation right in a dollar-denominated bonus pool that is settled in either Company common stock or performance units of the operating partnership, as well as certain dividend equivalent or distribution rights. Upon adoption of the 2018 OPP, the Compensation Committee granted Victor J. Coleman, Mark T. Lammas, Christopher Barton, Alex Vouvalides and Josh Hatfield, each of whom is a named executive officer, OPP awards of 24% , 13.75% , 6.4% , 9.15% and 6.4% respectively. The awards for each were granted in the form of performance units. Under the 2018 OPP, a bonus pool of up to (but not exceeding) $25 million will be determined at the end of the performance period as the sum of: (i) 3% of the amount by which our TSR during the performance period exceeds 7% simple annual TSR (the absolute TSR component), plus (ii) 3% of the amount by which our TSR performance exceeds that of the SNL US Office REIT Index (on a percentage basis) over the performance period (the relative TSR component), except that the relative TSR component will be reduced on a linear basis from 100% to 25% for absolute TSR performance ranging from 7% to 0% simple annual TSR over the performance period. In addition, the relative TSR component may be a negative value equal to 3% of the amount by which we underperform the SNL US Office REIT Index by more than 3% per year during the performance period (if any). The target bonus pool is equal to $4.8 million , which would be attained if the Company achieves during the performance period (i) a TSR is equal to that of the SNL US Office REIT Index and (ii) a 8% simple annual TSR. At the end of the three -year performance period, named executive officers who remain employed with us will vest in a number of performance units based on their percentage interest in the bonus pool (and determined based on the value of the common stock at the end of the performance period), and such vested performance units and will continue to be subject to an additional two -year holding (i.e., no-sell) period. However, if the performance period is terminated prior to December 31, 2020 in connection with a change in control, 2018 OPP awards will be paid entirely in fully vested performance units immediately prior to the change in control. In addition to these performance units, each 2018 OPP award entitles its holder to a cash payment equal to the aggregate distributions or dividends that would have been paid during the performance period on the total number of performance units that performance-vest had such performance units been outstanding throughout the performance period. The cash payment will be reduced by the aggregate amount of the distributions received during the performance period on the total number of performance units granted. If a participant’s employment is terminated without “cause,” for “good reason” or due to the participant’s death or disability during the performance period (referred to as qualifying terminations), the participant will be paid his or her 2018 OPP award at the end of the performance period entirely in fully vested performance units (except for the performance period distribution/dividend equivalent, which will be paid in cash at the end of the performance period). Any such payment will be pro-rated in the case of a termination without “cause” or for “good reason” by reference to the participant’s period of employment during the performance period. The foregoing description of terms of the 2018 OPP is qualified in its entirety by reference to the text of the 2018 Outperformance Award Agreements, which are attached hereto as Exhibits 10.72 and 10.73 and are incorporated herein by reference. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Schedule III — Real Estate and Accumulated Depreciation December 31, 2017 (In thousands) Initial Costs Cost Capitalized Subsequent to Acquisition Gross Carrying Amount Property name Encumbrances Land Building & Improvements Improvements Carrying Costs Land Building & Improvements Total Accumulated Depreciation (4) Year Built / Renovated Year Acquired Office 875 Howard, San Francisco Bay Area, CA $ — $ 18,058 $ 41,046 $ 17,544 $ 1,936 $ 18,058 $ 60,526 78,584 $ (13,944 ) Various 2007 6040 Sunset (formerly Technicolor Building), Los Angeles, CA — 6,599 27,187 25,032 3,088 6,599 55,307 61,906 (19,426 ) 2008 2008 ICON, Los Angeles, CA — — — 146,009 5,497 — 151,506 151,506 (5,494 ) 2017 2008 CUE, Los Angeles, CA — — — 35,837 1,326 — 37,163 37,163 — Ongoing 2008 EPIC, Los Angeles, CA — — — 23,783 852 — 24,635 24,635 — Ongoing 2008 Del Amo, Los Angeles, CA — — 18,000 2,458 — — 20,458 20,458 (4,767 ) 1986 2010 1455 Market, San Francisco Bay Area, CA — 41,226 34,990 55,661 — 41,226 90,651 131,877 (12,725 ) 1976 2010 Rincon Center, San Francisco Bay Area, CA (1)(2) 98,392 58,251 110,656 22,396 — 58,251 133,052 191,303 (24,373 ) 1940/1989 2010 10950 Washington, Los Angeles, CA (2) 27,418 17,979 25,110 745 — 17,979 25,855 43,834 (4,978 ) 1957/1974 2010 604 Arizona, Los Angeles, CA — 5,620 14,745 1,332 423 5,620 16,500 22,120 (2,566 ) 1950/2005 2011 275 Brannan, San Francisco Bay Area, CA — 4,187 8,063 14,029 1,115 4,187 23,207 27,394 (6,253 ) 1905 2011 625 Second, San Francisco Bay Area, CA — 10,744 42,650 3,319 — 10,744 45,969 56,713 (8,564 ) 1906/1999 2011 6922 Hollywood, Los Angeles, CA — 16,608 72,392 8,302 — 16,608 80,694 97,302 (15,166 ) 1967 2011 10900 Washington — 1,400 1,200 738 — 1,400 1,938 3,338 (661 ) 1973 2012 901 Market, San Francisco Bay Area, CA — 17,882 79,305 13,606 — 17,882 92,911 110,793 (15,115 ) 1912/1985 2012 Element LA, Los Angeles, CA (2) 168,000 79,769 19,755 85,349 10,391 79,769 115,495 195,264 (10,203 ) 1949 2012, 2013 3401 Exposition, Los Angeles, CA — 14,120 11,319 11,046 1,028 14,120 23,393 37,513 (2,844 ) 1961 2013 505 First, Greater Seattle, WA — 22,917 133,034 3,905 22,917 136,939 159,856 (17,885 ) Various 2013 83 King, Greater Seattle, WA — 12,982 51,403 5,300 12,982 56,703 69,685 (8,345 ) Various 2013 Met Park North, Greater Seattle, WA (2) 64,500 28,996 71,768 608 — 28,996 72,376 101,372 (10,016 ) 2000 2013 Northview Center, Greater Seattle, WA — 4,803 41,191 918 — 4,803 42,109 46,912 (6,020 ) 1991 2013 Merrill Place, Greater Seattle, WA — 27,684 29,824 16,287 784 27,684 46,895 74,579 (5,251 ) Various 2014 450 Alaskan, Greater Seattle, WA — — — 73,226 2,542 — 75,768 75,768 (201 ) Ongoing 2014 Palo Alto Square, San Francisco Bay Area, CA — — 326,033 17,448 — — 343,481 343,481 (31,719 ) 1971 2015 3400 Hillview, San Francisco Bay Area, CA — — 159,641 2,453 — — 162,094 162,094 (20,037 ) 1991 2015 Initial Costs Cost Capitalized Subsequent to Acquisition Gross Carrying Amount Property name Encumbrances Land Building & Improvements Improvements Carrying Costs Land Building & Improvements Total Accumulated Depreciation (4) Year Built / Renovated Year Acquired Foothill Research Center, San Francisco Bay Area, CA — — 133,994 3,011 — — 137,005 137,005 (19,269 ) 1991 2015 Page Mill Center, San Francisco Bay Area, CA — — 147,625 6,748 — — 154,373 154,373 (19,348 ) 1970/2016 2015 Clocktower Square, San Francisco Bay Area, CA — — 93,949 539 — — 94,488 94,488 (7,875 ) 1983 2015 3176 Porter (formerly Lockheed), San Francisco Bay Area, CA — — 34,561 (292 ) — — 34,269 34,269 (3,732 ) 1991 2015 Towers at Shore Center, San Francisco Bay Area, CA — 72,673 144,188 7,924 — 72,673 152,112 224,785 (13,102 ) 2001 2015 Skyway Landing, San Francisco Bay Area, CA — 37,959 63,559 2,812 — 37,959 66,371 104,330 (6,923 ) 2001 2015 Shorebreeze, San Francisco Bay Area, CA — 69,448 59,806 7,556 — 69,448 67,362 136,810 (5,805 ) 1985/1989 2015 555 Twin Dolphin, San Francisco Bay Area, CA — 40,614 73,457 5,409 — 40,614 78,866 119,480 (7,074 ) 1989 2015 333 Twin Dolphin, San Francisco Bay Area, CA — 36,441 64,892 8,275 — 36,441 73,167 109,608 (7,136 ) 1985 2015 Peninsula Office Park, San Francisco Bay Area, CA — 98,206 93,780 12,094 — 98,206 105,874 204,080 (12,121 ) Various 2015 Metro Center, San Francisco Bay Area, CA — — 313,683 39,566 — — 353,249 353,249 (31,341 ) Various 2015 Concourse, San Francisco Bay Area, CA — 45,085 224,271 9,585 — 45,085 233,856 278,941 (23,035 ) Various 2015 Gateway, San Francisco Bay Area, CA — 33,117 121,217 26,159 — 33,117 147,376 180,493 (14,718 ) Various 2015 Metro Plaza, San Francisco Bay Area, CA — 16,038 106,156 9,929 — 16,038 116,085 132,123 (10,924 ) 1986 2015 1740 Technology, San Francisco Bay Area, CA — 8,052 49,486 3,555 — 8,052 53,041 61,093 (7,032 ) 1985 2015 Skyport Plaza, San Francisco Bay Area, CA — 29,033 153,844 (6,501 ) — 29,033 147,343 176,376 (10,401 ) 2000/2001 2015 Techmart, San Francisco Bay Area, CA — — 66,660 10,598 — — 77,258 77,258 (8,244 ) 1986 2015 Campus Center, San Francisco Bay Area, CA — 59,460 79,604 7,834 — 59,460 87,438 146,898 (15,374 ) N/A 2015 Fourth & Traction, Los Angeles, CA — 12,140 37,110 38,529 6,139 12,140 81,778 93,918 — Various 2015 MaxWell, Los Angeles, CA — 13,040 26,960 17,795 3,729 13,040 48,484 61,524 — Various 2015 11601 Wilshire, Los Angeles, CA — 28,978 321,273 17,641 — 28,978 338,914 367,892 (15,876 ) 1983 2016, 2017 Hill7, Greater Seattle, WA (2) 101,000 36,888 137,079 13,394 — 36,888 150,473 187,361 (5,466 ) 2015 2016 Page Mill Hill, San Francisco Bay Area, CA — — 131,402 1,958 — — 133,360 133,360 (5,046 ) 1975 2016 Media & Entertainment — Initial Costs Cost Capitalized Subsequent to Acquisition Gross Carrying Amount Property name Encumbrances Land Building & Improvements Improvements Carrying Costs Land Building & Improvements Total Accumulated Depreciation (4) Year Built / Renovated Year Acquired Sunset Gower Studios, Los Angeles, CA (3) 5,001 79,320 64,697 31,416 207 79,320 96,320 175,640 (23,644 ) Various 2007, 2011, 2012 Sunset Bronson Studios, Los Angeles, CA (3) — 77,698 32,374 31,543 422 77,698 64,339 142,037 (11,485 ) Various 2008 Sunset Las Palmas Studios, Los Angeles, CA 118,892 86,922 4,773 13 118,892 91,708 210,600 (1,974 ) Various 2017 Total before held for sale reclass 464,311 1,302,907 4,181,861 899,181 39,492 1,302,907 5,120,534 6,423,441 (533,498 ) Real estate held for sale: 9300 Wilshire, Los Angeles, CA — — 10,718 2,024 — — 12,742 12,742 (4,195 ) 1964/2002 2010 Embarcadero Place, San Francisco Bay Area, CA — 41,050 77,006 3,273 — 41,050 80,279 121,329 (7,155 ) 1984 2015 2180 Sand Hill, San Francisco Bay Area, CA — 13,663 50,559 385 — 13,663 50,944 64,607 (3,749 ) 1973 2015 2600 Campus Drive (building 6 of Peninsula Office Park), San Francisco Bay Area, CA — 11,700 10,400 30 — 11,700 10,430 22,130 (814 ) Various 2015 Total $ 464,311 $ 1,369,320 $ 4,330,544 $ 904,893 $ 39,492 $ 1,369,320 $ 5,274,929 $ 6,644,249 $ (549,411 ) _____________ (1) The loan was paid in full on February 1, 2018. (2) These properties are encumbered under our unsecured revolving credit facility, which, as of December 31, 2017, had an outstanding balance of $100.0 million . (3) The encumbrance amount relates to both Sunset Gower Studios and Sunset Bronson Studios. See description of notes payable in Part IV, Item 15(a) “Financial Statement and Schedules — Note 5 to the Consolidated Financial Statements-Notes Payable, net.” (4) The Company computes depreciation using the straight-line method over the estimated useful lives over the shorter of the ground lease term or 39 years for building and improvements, 15 years for land improvements and over the shorter of asset life or life of the lease for tenant improvements. The aggregate gross cost of property included above for federal income tax purposes approximated $6.2 billion , unaudited as of December 31, 2017 . The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2015 to December 31, 2017 : Year Ended December 31, 2017 2016 2015 Total investment in real estate, beginning of year $ 6,507,484 $ 5,976,526 $ 2,239,741 Additions during period: Acquisitions 255,848 597,751 3,699,289 Improvements, capitalized costs 330,809 296,399 198,561 Total additions during period 586,657 894,150 3,897,850 Deductions during period Disposal (fully depreciated assets and early terminations) (41,337 ) (27,451 ) (13,556 ) Cost of property sold (408,555 ) (335,741 ) (147,509 ) Total deductions during period (449,892 ) (363,192 ) (161,065 ) Ending balance, before reclassification to assets associated with real estate held for sale 6,644,249 6,507,484 5,976,526 Reclassification to assets associated with real estate held for sale (220,808 ) (629,004 ) (353,067 ) Total investment in real estate, end of year $ 6,423,441 $ 5,878,480 $ 5,623,459 Total accumulated depreciation, beginning of year $ (423,950 ) $ (272,724 ) $ (142,561 ) Additions during period: Depreciation of real estate (206,838 ) (182,219 ) (151,066 ) Total additions during period (206,838 ) (182,219 ) (151,066 ) Deductions during period: Deletions 37,925 25,622 12,999 Write-offs due to sale 43,452 5,371 7,904 Total deductions during period 81,377 30,993 20,903 Ending balance, before reclassification to assets associated with real estate held for sale (549,411 ) (423,950 ) (272,724 ) Reclassification to assets associated with real estate held for sale 15,913 48,743 8,865 Total accumulated depreciation, end of year $ (533,498 ) $ (375,207 ) $ (263,859 ) |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any reference to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). |
Principles of Consolidation | The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, we first evaluate an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the cost or equity method of accounting. In addition, we continually evaluate each legal entity that is not wholly owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2017 , the Company has determined that three joint ventures and our operating partnership met the definition of a VIE. Two of the joint ventures are consolidated entities and one joint venture is a non-consolidated entity. Consolidated Entities On November 16, 2017, the Company sold its 65.0% ownership interest in the single joint venture that owned both Pinnacle I and Pinnacle II. As a result of the disposition, the Company no longer consolidates Pinnacle and Pinnacle II. As of December 31, 2017 , the operating partnership has determined that two of its joint ventures met the definition of a VIE and are consolidated: Property Ownership interest 1455 Market 55.0 % Hill7 55.0 % As of December 31, 2017 , the Company has determined that our operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to these VIEs. Non-consolidated Entities On June 15, 2017, the Company purchased the remaining interest in land at its 11601 Wilshire property. Refer to Note 3 for details. As a result of the purchase, the Company is now consolidating the interest in land. On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The assets of the joint venture consist of notes receivable. As of December 31, 2017 , the Company has determined this joint venture meets the definition of a VIE, however, it is not the primary beneficiary. Due to its significant influence over the non-consolidated entity, the Company accounts for it using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment of $14.2 million is reflected within prepaid expenses and other assets on the Consolidated Balance Sheets which represents the Company’s maximum exposure for loss. The Company’s share of net income or loss from the entity is included within other (income) expense on the Consolidated Statements of Operations. The Company owns 21% of the non-consolidated entity. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. |
Investment in Real Estate Properties | Acquisitions The Company evaluates each acquisition of real estate to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if (i) the process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce), that is skilled, knowledgeable, and experienced in performing the process (ii) the process cannot be replaced without significant cost, effort, or delay or (iii) the process is considered unique or scarce. Acquisitions of real estate will generally not meet the revised definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered business combinations, assets acquired and liabilities assumed are fair valued at the acquisition date. Assets acquired and liabilities assumed include, but are not limited to, land, building and improvements, intangible assets related to above-and below-market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial accounting for a business combination is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price assignment are made within the measurement period, which typically does not exceed one year, within the Consolidated Balance Sheets. Acquisition-related expenses associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair value of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial below-market term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions and legal and other related costs. Cost Capitalization The Company capitalizes direct construction and development costs, including redevelopment costs, interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. |
Depreciation | The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of lease, the amortization of intangible assets and liabilities are accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. |
Held for sale | The Company classifies properties as held for sale when certain criteria set forth in Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale in the Consolidated Balance Sheets for the periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. According to ASC 205, Presentation of Financial Statements , the Company does not present the operating results in net loss from discontinued operations for disposals if they do not represent a strategic shift in the Company’s business. |
Impairment of Long-Lived Assets | The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties. |
Goodwill | Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business acquisitions. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. |
Cash, Cash Equivalents and Restricted Cash | Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. |
Accounts Receivable, net | Accounts receivable consist of amounts due for monthly rents and other charges. The Company maintains an allowance for doubtful accounts for estimated losses resulting from tenant defaults or the inability of tenants to make contractual rent and tenant recovery payments. The Company monitors the liquidity and creditworthiness of its tenants and operators on an ongoing basis. This evaluation considers industry and economic conditions, property performance, credit enhancements, length of time the receivables are past due, specific identification of uncollectible amounts, historical experience and other relevant factors. Historical experience has been within management’s expectations. |
Segment Reporting | The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties and (ii) media and entertainment properties. The Company evaluates performance based upon net operating income of the combined properties in each segment. The media and entertainment segment is immaterial, and therefore separate income information by segment has not been presented. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources. |
Revenue Recognition | The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. Certain leases provide for additional rents contingent upon a percentage of the tenant’s revenue in excess of specified base amounts or other thresholds. Such revenue is recognized when actual results reported by the tenant, or estimates of tenant results, exceed the base amount or other thresholds. Such revenue is recognized only after the contingency has been removed (when the related thresholds are achieved), which may result in the recognition of rental revenue in periods subsequent to when such payments are received. Other property-related revenue is revenue that is derived from the tenants’ use of lighting, equipment rental, parking, power, HVAC and telecommunications (telephone and Internet). Other property-related revenue is recognized when these items are provided. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. The Company recognizes gains on sales of properties upon the closing of the transaction with the purchaser. Gains on properties sold are recognized using the full accrual method when (i) the collectability of the sales price is reasonably assured, (ii) the Company is not obligated to perform significant activities after the sale, (iii) the initial investment from the buyer is sufficient and (iv) other profit recognition criteria have been satisfied. Gains on sales of properties may be deferred in whole or in part until the requirements for gain recognition have been met. |
Deferred Financing Costs and Debt Discount/Premium | Deferred financing costs are amortized over the contractual loan term into interest expense on the Consolidated Statements of Operations. Deferred financing costs, and related amortization, related to the unsecured revolving credit facility and undrawn term loans are presented within prepaid expenses and other assets, net in the Consolidated Balance Sheets. All other deferred financing costs, and related amortization, are included in the notes payable, net line item in the Consolidated Balance Sheets. Debt discounts and premiums are amortized and accreted on a straight-line basis over the contractual loan term, which approximates the effective interest method, into interest expense on the Consolidated Statements of Operations. Discounts are recorded as additional interest expense and premiums are recorded as a reduction to interest expense. |
Derivative Instruments | The Company manages interest rate risk associated with borrowings by entering into derivative instruments. The Company recognizes all derivative instruments on the Consolidated Balance Sheets on a gross basis at fair value. Derivative instruments that are not effective hedges are adjusted to fair value and the changes in fair value are reflected as income or expense. If the derivative instrument is an effective hedge, depending on the nature of the hedge, changes in the fair value are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (loss), which is a component of equity. The ineffective portion of a derivative instrument’s change in fair value is immediately recognized in earnings. |
Stock-Based Compensation | Compensation cost of restricted stock, restricted stock units and performance units under the Company’s equity incentive award plans are accounted for under ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company accounts for forfeitures of awards as they occur. |
Income Taxes | The Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market and Hill7 properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with its taxable year ended December 31, 2010. The Company believes that it has operated in a manner that has allowed the Company to qualify as a REIT for federal income tax purposes commencing with such taxable year, and the Company intends to continue operating in such manner. To qualify as a REIT, the Company is required to distribute at least 90% of its net taxable income, excluding net capital gains, to the Company’s stockholders and to meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that it continues to qualify for taxation as a REIT, the Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of its taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. Unless entitled to relief under specific statutory provisions, the Company would be ineligible to elect to be treated as a REIT for the four taxable years following the year for which the Company loses its qualification. It is not possible to state whether in all circumstances the Company would be entitled to this statutory relief. The Company may acquire direct or indirect interests in one or more Subsidiary REITs. A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to the Company. If a subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to federal income tax, (ii) shares in such REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless the Company could avail itself of certain relief provisions. The Company believes that its operating partnership is properly treated as a partnership for federal income tax purposes. As a partnership, the Company’s operating partnership is not subject to federal income tax on its income. Instead, each of its partners, including the Company, is allocated, and may be required to pay tax with respect to, its share of the operating partnership’s income. As such, no provision for federal income taxes has been included for the operating partnership. The Company has elected, together with one of the Company’s subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. The Company’s TRS did not have significant tax provisions or deferred income tax items for 2017 , 2016 or 2015 . The Company is subject to the statutory requirements of the states in which it conducts business. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2017 , the Company has not established a liability for uncertain tax positions. The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2012. Generally, the Company has assessed its tax positions for all open years, which include 2012 to 2016, and concluded that there are no material uncertainties to be recognized. |
Fair Value of Assets and Liabilities | Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“the FASB”) in the form of Accounting Standards Update (“ASU”). The following ASUs were issued from 2016 to 2017 and have been adopted by the Company: Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This guidance removes step two from the goodwill impairment test. As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted this guidance during the second quarter of 2017 and applied it prospectively. The adoption did not have an impact on the Company’s consolidated financial statements. ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update) The guidance in this ASU is based on two SEC staff announcements made at the September 2016 and November 2016 EITF meetings. In the September meeting, the SEC announced that a registrant should disclose the potential material effects of the ASUs related to revenues, leases and credit losses on financial instruments. As a result of the November meeting, the ASU conforms to ASC 323 to the guidance issued in ASU 2014-01 related to investments in qualified affordable housing projects. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. With the adoption, the Company provided updates on its implementation of the ASUs related to revenue, leases and credit losses on financial instruments. Please refer to sections below for updates on the implementation of revenue and lease ASUs. The ASU related to credit losses on financial instruments could have a material impact on trade receivables and the Company is currently assessing the impact of this ASU on its consolidated financial statements and notes to the consolidated financial statements. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business This update amends the guidance for determining whether a transaction involves the purchase or disposal of a business or an asset. The amendments clarify that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar assets, the set of assets and activities is not a business. The Company early adopted the guidance in the fourth quarter of 2016. The adoption of this guidance changed the accounting for the transaction costs for acquisitions of operating properties treated as asset acquisitions such that transaction costs are capitalized as part of the purchase price of the acquisition instead of being expensed as transaction-related expenses. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2016-19, Technical Corrections and Improvements The technical corrections make minor change to certain aspects of the FASB ASC, including changes to resolve differences between current and pre-Codification guidance, updates to wording, references to avoid misapplication and textual simplifications to increase the Codification’s utility and understandability and minor amendments to guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) This guidance requires entities to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company early adopted this guidance during the second quarter of 2017 and applied it retrospectively. Pursuant to the adoption, the Company revised the Consolidated Statement of Cash Flows and disclosed the reconciliation to the related captions in the Consolidated Balance Sheets. ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control This guidance outlines how a single decisionmaker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The Company adopted this guidance during the first quarter of 2017 and applied it retrospectively. The adoption did not have a material impact on the Company’s consolidated financial statements and did not change the consolidation conclusion. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU clarifies how certain transactions should be classified in the statement of cash flows, including debt prepayment costs, contingent consideration payments made after a business combination and distributions received from equity method investments. The ASU provides two approaches to determine the classification of cash distributions received from equity method investments: (i) the “cumulative earnings” approach, under which distributions up to the amount of cumulative equity in earnings recognized will be classified as cash inflows from operating activities, and those in excess of that amount will be classified as cash inflows from investing activities and (ii) the “nature of the distribution” approach, under which distributions will be classified based on the nature of the underlying activity that generated cash distributions. The guidance requires a Company to elect either the “cumulative earnings” approach or the “nature of the distribution” approach at the time of adoption. The Company early adopted this guidance during the second quarter of 2017 and applied it retrospectively. Pursuant to the adoption, the Company elected the “nature of the distribution” approach related to the distributions received from its equity method investments. The adoption did not have an impact on the Company’s Consolidated Statements of Cash Flows. ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method. It is required to apply this guidance prospectively. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. ASU 2016-06, Investments—Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments The guidance requires a four-step decision sequence when assessing whether an embedded contingent put or call option is clearly and closely related to the debt host instrument. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have an impact on the Company’s consolidated financial statements. ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The guidance states that the novation of a derivative contract (e.g., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require de-designation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. Either a prospective or a modified retrospective approach can be applied. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. Update on ASC 606, Revenue from Contracts with Customers (“ASC 606”), implementation The new revenue standard was amended through various ASU’s. The ASU’s that impact the Company are ASU 2016-08, Revenue from Contracts with Customers — Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2014-09, Revenue from Contracts with Customers . Issued on March 17, 2016, ASU 2016-08 clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. Issued on May 28, 2014, ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and specifically notes that lease contracts with customers are a scope exception. ASC 606 provides practical expedients associated with the determination of whether a significant financing component exists and the expedient for recording an immediate expense for certain incremental costs of obtaining a contract with a customer. This ASU is effective for annual reporting periods (including interim periods) beginning after December 15, 2017. Either the full retrospective approach (to the beginning of its contracts) or modified retrospective approach (from the beginning of the latest fiscal year of adoption) is permitted. The Company has compiled an inventory of its sources of revenues and has preliminarily identified three revenue streams, which include other property related revenues, tenant recoveries and parking and other. Two of these revenue streams will be accounted for under ASC 606 when it becomes effective on January 1, 2018. The remaining revenue stream, tenant recoveries, which is integral to the Company’s leasing revenues, will be accounted for under ASC 606 on January 1, 2019, when the Company adopts ASC 842, Leases (“ASC 842”). Under the current ASC 842 guidance, the Company would be required to classify our tenant recoveries into lease and non-lease components. In January 2018, the FASB issued a proposed amendment to ASC 842 which if elected allows the Company to classify tenant recoveries as a single lease component and ASC 606 would then not apply. The Company has completed its implementation of ASC 606 and has concluded that the recognition of revenues will not be materially impacted by this standard. The Company adopted ASC 606 on January 1, 2018 using the modified retrospective approach and is using the practical expedients associated with expensing incremental costs of obtaining a contract with a customer with terms of one year or less. Update on ASC 842, Leases, implementation On February 25, 2016, the FASB issued ASU 2016-02, Leases , to amend the accounting guidance for leases and set out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). This ASU is effective for annual reporting periods (including interim periods) beginning after December 15, 2018. A modified retrospective approach must be applied for leases that exist or are entered into after January 1, 2017, the beginning of the earliest comparative period presented in the 2019 consolidated financial statements, with a cumulative adjustment to the opening balance of accumulated deficit on January 1, 2017, and restatement of the amounts presented prior to January 1, 2019. In January 2018, the FASB issued a proposed amendment to ASU 842 that would provide an entity the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to accumulated deficit on the effective date of the ASU, January 1, 2019 rather than January 1, 2017, which would eliminate the need to restate amounts presented prior to January 1, 2019. This guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting will not be fundamentally changed. ASC 842 provides practical expedients that allow entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. The Company plans to adopt the standard on January 1, 2019 and expects to elect the use of practical expedients. If the proposed amendment to ASU 842 is adopted, the Company would elect the transition method for adoption as described above. Lessor Accounting The Company recognized rental revenues and tenant recoveries of $675.6 million for the year ended December 31, 2017 . This ASU requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset and non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components will be governed by ASC 842 while revenue related to non-lease components will be subject to ASC 606. Under current accounting standards, the Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as we are generally the primary obligor with respect to purchasing goods and services from third-party suppliers, have discretion in selecting the supplier and bear the associated credit risk. In the FASB-proposed amendment to ASU 842, lessors can elect, as a practical expedient, not to allocate the total consideration to lease and non-lease components based on their relative standalone selling prices. If adopted, this practical expedient will allow lessors to elect a combined single lease component presentation if (i) the timing and pattern of the revenue recognition of the combined single lease component is the same, and (ii) the related lease component and, the combined single lease component would be classified as an operating lease. The Company has not completed its analysis of this ASU. If the proposed practical expedient mentioned above is adopted and elected, tenant recoveries that qualify as non-lease components will be combined under a single lease component presentation. However, without the proposed practical expedient, the Company expects that it will continue to recognize the lease revenue component using an approach that is substantially equivalent to existing guidance. The Company expects that tenant recoveries will be separated into lease and non-lease components. Tenant recoveries that are categorized as lease components will generally be variable consideration with revenue recognized as the recoverable services are provided. Tenant recoveries that are categorized as non-lease components will be recognized at either a point in time or over time based on the pattern of transfer of the underlying goods or services to our tenants. The ASU also requires lessors to capitalize only those costs that are defined as initial direct costs. Under the current accounting standards, the Company capitalizes initial direct and indirect leasing costs. During the year ended December 31, 2017 , the Company capitalized $8.9 million of indirect leasing costs. Under this new ASU, these costs will be expensed as incurred. Lessee Accounting As of December 31, 2017 , the future undiscounted minimum lease payments under the Company’s ground leases totaled $452.8 million . This guidance requires lessees to record a lease liability at lease inception, with a corresponding right-of-use asset, except for short-term leases. The Company continues to evaluate the amount of right-of-use asset and lease liability that will ultimately be recorded with respect to its ground leases agreements, where it is the lessee. Other recently issued ASUs The Company considers the applicability and impact of all ASUs. The following table lists the recently issued ASUs that have not been adopted by the Company. The list excludes those ASUs that are not expected to have a material impact on the Company’s consolidated financial statements and the ASUs related to the ASC 606 and ASC 842 which are discussed above. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Therefore, a cumulative effect adjustment related to elimination of ineffectiveness measurement is required to be recorded to the opening balance of accumulated deficit as of the beginning of the fiscal year of adoption for cash flow hedges. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This guidance must be applied using a modified retrospective approach. Effective for annual reporting periods (including interim periods) beginning after December 15, 2018 The Company is currently evaluating the impact of this standard on its consolidated financial statements and notes to the consolidated financial statements. The Company expects that the adoption would impact derivative instruments that have portions of ineffectiveness. The Company plans to early adopt this guidance during the first quarter in 2018 and apply it using the modified retrospective approach. ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting The guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This guidance must be applied prospectively. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company does not currently expect a material impact of this ASU on its consolidated financial statements and notes to the consolidated financial statements. The Company plans to adopt this guidance during the first quarter in 2018. ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets The guidance updates the definition of an in substance nonfinancial asset and clarifies the scope of ASC 610-20 on the sale or transfer of nonfinancial assets to noncustomers, including partial sales. It also clarifies the derecognition guidance for nonfinancial assets to conform with the new revenue recognition standard. Either a full or modified retrospective approach can be applied. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company currently expects that the adoption of this ASU could have a material impact on its consolidated financial statements; however, such impact will not be known until the Company disposes of any of its investments in real estate properties, which would all be sales of nonfinancial assets. The Company plans to adopt this guidance during the first quarter in 2018 and apply it using the modified retrospective approach. ASU 2016-13, Financial Instruments—Credit Losses This guidance sets forth a new impairment model for financial instruments, the current expected credit loss (“CECL”) model, which is based on expected losses rather than incurred losses. Under the CECL model, an entity recognizes as an allowance its estimate of expected credit losses. Effective for annual reporting periods (including interim periods) beginning after December 15, 2019 The Company is currently evaluating the impact of this standard. ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance provides a new measurement alternative for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company is currently evaluating the impact of this standard. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's portfolio | The following table summarizes the Company’s portfolio as of December 31, 2017 : Segments Number of Properties Square Feet (unaudited) Office 51 13,291,531 Media & Entertainment 3 1,249,927 Total (1) 54 14,541,458 _________________ (1) Includes redevelopment, development and held for sale properties. The following table summarizes the information on the acquisitions completed in 2017 and 2016: Property Submarket Segment Month of Acquisition Square Feet Purchase Price (1) (in millions) Sunset Las Palmas Studios (2) Hollywood Media and Entertainment May 2017 369,000 $ 200.0 11601 Wilshire land (3) West Los Angeles Office June 2017 N/A 50.0 6666 Santa Monica (4) Hollywood Media and Entertainment June 2017 4,150 3.2 Total acquisitions in 2017 373,150 $ 253.2 11601 Wilshire (5) West Los Angeles Office July 2016 500,475 $ 311.0 Hill7 (6) South Lake Union Office October 2016 285,680 179.8 Page Mill Hill (7) Palo Alto Office December 2016 182,676 150.0 Total acquisitions in 2016 968,831 $ 640.8 _____________ (1) Represents purchase price before certain credits, prorations and closing costs. (2) The property consists of stages, production office and support space on 15 acres near Sunset Gower Studios and Sunset Bronson Studios. The purchase price above does not include equipment purchased by the Company for $2.8 million , which was transacted separately from the studio acquisition. In April 2017, the Company drew $150.0 million under the unsecured revolving credit facility to fund the acquisition. (3) On July 1, 2016 the Company purchased a partial interest in land held as a tenancy in common in conjunction with its acquisition of the 11601 Wilshire property. The land interest held as a tenancy in common was accounted for as an equity method investment. On June 15, 2017, the Company purchased the remaining interest, which was fair valued and allocated to land and building. (4) This parcel is adjacent to the Sunset Las Palmas Studios property. (5) Previously owned by an affiliate of Blackstone, the property has served as the Company’s corporate headquarters since its IPO. The Company funded this acquisition with proceeds from the unsecured revolving credit facility. (6) The Company purchased the property through a joint venture with the Canadian Pension Plan Investment Board. The Company has a 55% ownership interest in the consolidated joint venture. In conjunction with the acquisition, the joint venture closed a secured non-recourse loan in the amount of $101.0 million . (7) The Company funded this acquisition with proceeds from the unsecured revolving credit facility. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2017 , the operating partnership has determined that two of its joint ventures met the definition of a VIE and are consolidated: Property Ownership interest 1455 Market 55.0 % Hill7 55.0 % |
Schedule of Costs Capitalized | The Company recognized the following capitalized costs: Year Ended December 31, 2017 2016 2015 Capitalized personnel costs $ 10,853 $ 9,347 $ 7,349 Capitalized interest 10,655 11,307 6,516 |
Schedule of Property, Plant and Equipment Useful Lives | The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2017 2016 2015 (1) Beginning of period: Cash and cash equivalents $ 83,015 $ 53,551 $ 17,753 Restricted cash 25,177 18,010 17,083 Total $ 108,192 $ 71,561 $ 34,836 End of period: Cash and cash equivalents $ 78,922 $ 83,015 $ 53,551 Restricted cash 22,358 25,177 18,010 Total $ 101,280 $ 108,192 $ 71,561 _____________ (1) Includes restricted cash that was previously included in assets held for sale as of December 31, 2014. |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2017 2016 2015 (1) Beginning of period: Cash and cash equivalents $ 83,015 $ 53,551 $ 17,753 Restricted cash 25,177 18,010 17,083 Total $ 108,192 $ 71,561 $ 34,836 End of period: Cash and cash equivalents $ 78,922 $ 83,015 $ 53,551 Restricted cash 22,358 25,177 18,010 Total $ 101,280 $ 108,192 $ 71,561 _____________ (1) Includes restricted cash that was previously included in assets held for sale as of December 31, 2014. Included in restricted cash on the Company’s Consolidated Balance Sheets at December 31, 2017 and December 31, 2016 are lockbox and reserve funds as follows: Property December 31, 2017 December 31, 2016 Rincon Center $ 14,220 $ 16,291 Element LA 3,581 2,627 Hill7 2,392 1,643 10950 Washington 1,406 1,249 Pinnacle I — 1,811 Pinnacle II — 1,382 Total $ 21,599 $ 25,003 |
Schedule of Accounts Receivable Net of Allowance for Uncollectible Tenant Receivables | The following table represents the Company’s accounts receivable, net as of: December 31, 2017 December 31, 2016 Accounts receivable $ 6,835 $ 8,834 Allowance for doubtful accounts (2,472 ) (1,827 ) Accounts receivable, net (1) $ 4,363 $ 7,007 _____________ (1) Excludes balances related to properties that have been classified as held for sale. The following table represents the Company’s straight - line rent receivables, net as of: December 31, 2017 December 31, 2016 Straight-line rent receivables $ 109,457 $ 79,345 Allowance for doubtful accounts — (136 ) Straight-line rent receivables, net (1) $ 109,457 $ 79,209 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Prepaid Expenses and Other Assets, Net | The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2017 December 31, 2016 Investment in unconsolidated entities $ 14,240 $ 37,228 Goodwill 8,754 8,754 Derivative assets 12,586 5,935 Other 25,558 25,297 Prepaid expenses and other assets, net (1) $ 61,138 $ 77,214 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Security Deposits and Prepaid Rent | The following table represents the Company’s security deposits and prepaid rent as of: December 31, 2017 December 31, 2016 Security deposits $ 36,458 $ 29,837 Prepaid rent 27,573 37,041 Security deposits and prepaid rent (1) $ 64,031 $ 66,878 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Recently Issued Accounting Literature | Changes to GAAP are established by the Financial Accounting Standards Board (“the FASB”) in the form of Accounting Standards Update (“ASU”). The following ASUs were issued from 2016 to 2017 and have been adopted by the Company: Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment This guidance removes step two from the goodwill impairment test. As a result, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The Company early adopted this guidance during the second quarter of 2017 and applied it prospectively. The adoption did not have an impact on the Company’s consolidated financial statements. ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update) The guidance in this ASU is based on two SEC staff announcements made at the September 2016 and November 2016 EITF meetings. In the September meeting, the SEC announced that a registrant should disclose the potential material effects of the ASUs related to revenues, leases and credit losses on financial instruments. As a result of the November meeting, the ASU conforms to ASC 323 to the guidance issued in ASU 2014-01 related to investments in qualified affordable housing projects. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. With the adoption, the Company provided updates on its implementation of the ASUs related to revenue, leases and credit losses on financial instruments. Please refer to sections below for updates on the implementation of revenue and lease ASUs. The ASU related to credit losses on financial instruments could have a material impact on trade receivables and the Company is currently assessing the impact of this ASU on its consolidated financial statements and notes to the consolidated financial statements. ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business This update amends the guidance for determining whether a transaction involves the purchase or disposal of a business or an asset. The amendments clarify that when substantially all of the fair value of the gross assets acquired or disposed of is concentrated in a single identifiable asset or a group of similar assets, the set of assets and activities is not a business. The Company early adopted the guidance in the fourth quarter of 2016. The adoption of this guidance changed the accounting for the transaction costs for acquisitions of operating properties treated as asset acquisitions such that transaction costs are capitalized as part of the purchase price of the acquisition instead of being expensed as transaction-related expenses. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2016-19, Technical Corrections and Improvements The technical corrections make minor change to certain aspects of the FASB ASC, including changes to resolve differences between current and pre-Codification guidance, updates to wording, references to avoid misapplication and textual simplifications to increase the Codification’s utility and understandability and minor amendments to guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force) This guidance requires entities to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The Company early adopted this guidance during the second quarter of 2017 and applied it retrospectively. Pursuant to the adoption, the Company revised the Consolidated Statement of Cash Flows and disclosed the reconciliation to the related captions in the Consolidated Balance Sheets. ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control This guidance outlines how a single decisionmaker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. The Company adopted this guidance during the first quarter of 2017 and applied it retrospectively. The adoption did not have a material impact on the Company’s consolidated financial statements and did not change the consolidation conclusion. ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments This ASU clarifies how certain transactions should be classified in the statement of cash flows, including debt prepayment costs, contingent consideration payments made after a business combination and distributions received from equity method investments. The ASU provides two approaches to determine the classification of cash distributions received from equity method investments: (i) the “cumulative earnings” approach, under which distributions up to the amount of cumulative equity in earnings recognized will be classified as cash inflows from operating activities, and those in excess of that amount will be classified as cash inflows from investing activities and (ii) the “nature of the distribution” approach, under which distributions will be classified based on the nature of the underlying activity that generated cash distributions. The guidance requires a Company to elect either the “cumulative earnings” approach or the “nature of the distribution” approach at the time of adoption. The Company early adopted this guidance during the second quarter of 2017 and applied it retrospectively. Pursuant to the adoption, the Company elected the “nature of the distribution” approach related to the distributions received from its equity method investments. The adoption did not have an impact on the Company’s Consolidated Statements of Cash Flows. ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method. It is required to apply this guidance prospectively. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. ASU 2016-06, Investments—Derivatives and Hedging (Topic 815), Contingent Put and Call Options in Debt Instruments The guidance requires a four-step decision sequence when assessing whether an embedded contingent put or call option is clearly and closely related to the debt host instrument. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have an impact on the Company’s consolidated financial statements. ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships The guidance states that the novation of a derivative contract (e.g., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require de-designation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered. Either a prospective or a modified retrospective approach can be applied. The Company adopted this guidance during the first quarter of 2017 and applied it prospectively. The adoption did not have a material impact on the Company’s consolidated financial statements. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. Therefore, a cumulative effect adjustment related to elimination of ineffectiveness measurement is required to be recorded to the opening balance of accumulated deficit as of the beginning of the fiscal year of adoption for cash flow hedges. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. This guidance must be applied using a modified retrospective approach. Effective for annual reporting periods (including interim periods) beginning after December 15, 2018 The Company is currently evaluating the impact of this standard on its consolidated financial statements and notes to the consolidated financial statements. The Company expects that the adoption would impact derivative instruments that have portions of ineffectiveness. The Company plans to early adopt this guidance during the first quarter in 2018 and apply it using the modified retrospective approach. ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting The guidance clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. This guidance must be applied prospectively. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company does not currently expect a material impact of this ASU on its consolidated financial statements and notes to the consolidated financial statements. The Company plans to adopt this guidance during the first quarter in 2018. ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets The guidance updates the definition of an in substance nonfinancial asset and clarifies the scope of ASC 610-20 on the sale or transfer of nonfinancial assets to noncustomers, including partial sales. It also clarifies the derecognition guidance for nonfinancial assets to conform with the new revenue recognition standard. Either a full or modified retrospective approach can be applied. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company currently expects that the adoption of this ASU could have a material impact on its consolidated financial statements; however, such impact will not be known until the Company disposes of any of its investments in real estate properties, which would all be sales of nonfinancial assets. The Company plans to adopt this guidance during the first quarter in 2018 and apply it using the modified retrospective approach. ASU 2016-13, Financial Instruments—Credit Losses This guidance sets forth a new impairment model for financial instruments, the current expected credit loss (“CECL”) model, which is based on expected losses rather than incurred losses. Under the CECL model, an entity recognizes as an allowance its estimate of expected credit losses. Effective for annual reporting periods (including interim periods) beginning after December 15, 2019 The Company is currently evaluating the impact of this standard. ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. This guidance provides a new measurement alternative for equity investments that do not have readily determinable fair values and do not qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Effective for annual reporting periods (including interim periods) beginning after December 15, 2017 The Company is currently evaluating the impact of this standard. |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Investment Financial Statements, Disclosure | The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2017 December 31, 2016 Land $ 1,302,907 $ 1,155,037 Building and improvements 4,480,993 4,069,005 Tenant improvements 411,706 354,940 Furniture and fixtures 8,608 4,264 Property under development 219,227 295,234 Investment in real estate, at cost (1) $ 6,423,441 $ 5,878,480 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Real Estate Properties Acquired | The following table summarizes the Company’s portfolio as of December 31, 2017 : Segments Number of Properties Square Feet (unaudited) Office 51 13,291,531 Media & Entertainment 3 1,249,927 Total (1) 54 14,541,458 _________________ (1) Includes redevelopment, development and held for sale properties. The following table summarizes the information on the acquisitions completed in 2017 and 2016: Property Submarket Segment Month of Acquisition Square Feet Purchase Price (1) (in millions) Sunset Las Palmas Studios (2) Hollywood Media and Entertainment May 2017 369,000 $ 200.0 11601 Wilshire land (3) West Los Angeles Office June 2017 N/A 50.0 6666 Santa Monica (4) Hollywood Media and Entertainment June 2017 4,150 3.2 Total acquisitions in 2017 373,150 $ 253.2 11601 Wilshire (5) West Los Angeles Office July 2016 500,475 $ 311.0 Hill7 (6) South Lake Union Office October 2016 285,680 179.8 Page Mill Hill (7) Palo Alto Office December 2016 182,676 150.0 Total acquisitions in 2016 968,831 $ 640.8 _____________ (1) Represents purchase price before certain credits, prorations and closing costs. (2) The property consists of stages, production office and support space on 15 acres near Sunset Gower Studios and Sunset Bronson Studios. The purchase price above does not include equipment purchased by the Company for $2.8 million , which was transacted separately from the studio acquisition. In April 2017, the Company drew $150.0 million under the unsecured revolving credit facility to fund the acquisition. (3) On July 1, 2016 the Company purchased a partial interest in land held as a tenancy in common in conjunction with its acquisition of the 11601 Wilshire property. The land interest held as a tenancy in common was accounted for as an equity method investment. On June 15, 2017, the Company purchased the remaining interest, which was fair valued and allocated to land and building. (4) This parcel is adjacent to the Sunset Las Palmas Studios property. (5) Previously owned by an affiliate of Blackstone, the property has served as the Company’s corporate headquarters since its IPO. The Company funded this acquisition with proceeds from the unsecured revolving credit facility. (6) The Company purchased the property through a joint venture with the Canadian Pension Plan Investment Board. The Company has a 55% ownership interest in the consolidated joint venture. In conjunction with the acquisition, the joint venture closed a secured non-recourse loan in the amount of $101.0 million . (7) The Company funded this acquisition with proceeds from the unsecured revolving credit facility. |
Business Acquisition, Pro Forma Information | The following table represents the Company’s final aggregate purchase price accounting, as of the respective acquisition dates, for each of the Company’s acquisitions completed in 2017: 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 _____________ (1) The purchase price allocation includes equipment purchased by the Company of $2.8 million . (2) Represents weighted-average amortization period of 1.2 years. |
Schedule of Business Acquisitions, by Acquisition | The following table represents the final purchase price accounting for each of the Company’s acquisitions completed in 2016: 11601 Wilshire Hill7 Page Mill Hill Total Investment in real estate, net $ 292,382 $ 173,967 $ 131,402 $ 597,751 Land interest (1) 7,836 — — 7,836 Above-market leases (2) 167 — 307 474 Below-market ground leases (3) 212 — 12,125 12,337 Deferred leasing costs and lease intangibles (4) 13,884 7,617 14,697 36,198 Below-market leases (5) (6,562 ) (1,417 ) (8,636 ) (16,615 ) Net asset and liabilities assumed $ 307,919 $ 180,167 $ 149,895 $ 637,981 _____________ (1) Represents the fair value of the Company’s interest in the land which was included in investment in unconsolidated entities in the Consolidated Balance Sheets at December 31, 2016. On June 15, 2017, the Company purchased the remaining interest, which was fair valued and allocated to land and building. Refer to the 2017 acquisitions above for details. (2) Represents weighted-average amortization period of 5.4 years. (3) Represents weighted-average amortization period of 33.2 years. (4) Represents weighted-average amortization period of 5.8 years. (5) Represents weighted-average amortization period of 6.4 years. |
Disposal Group, Not Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Real Estate Held for Sale | The following table summarizes the properties sold in 2017, 2016 and 2015. These properties were considered non-strategic to the Company’s portfolio: Property Month of Disposition Square Feet Sales Price (1) (in millions) 222 Kearny February 2017 148,797 $ 51.8 3402 Pico March 2017 50,687 35.0 Pinnacle I and Pinnacle II (2) November 2017 623,777 350.0 Total dispositions in 2017 823,261 $ 436.8 Bayhill Office Center January 2016 554,328 $ 215.0 Patrick Henry April 2016 70,520 19.0 One Bay Plaza June 2016 195,739 53.4 12655 Jefferson November 2016 100,756 80.0 Total dispositions in 2016 (3) 921,343 $ 367.4 First Financial March 2015 223,679 $ 89.0 Bay Park Plaza September 2015 260,183 90.0 Total dispositions in 2015 (4) 483,862 $ 179.0 _____________ (1) Represents gross sales price before certain credits, prorations and closing costs. (2) The consolidated joint venture that owned Pinnacle I and Pinnacle II sold the properties to affiliates of Blackstone. In conjunction with the sale, the $216.0 million debt secured by these properties was assumed by the purchasers. (3) Excludes the sale of an option to acquire land at 9300 Culver on December 6, 2016. (4) Excludes the 45% ownership interest in 1455 Market completed on January 7, 2015. |
Discontinued Operations, Held-for-sale | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Schedule of Real Estate Held for Sale | The following table summarizes the components of assets and liabilities associated with real estate held for sale as of: December 31, 2017 December 31, 2016 ASSETS Investment in real estate, net $ 204,895 $ 580,261 Accounts receivable, net 85 183 Straight-line rent receivables, net 2,234 8,849 Deferred leasing costs and lease intangible assets, net 4,063 23,078 Prepaid expenses and other assets, net 58 2,803 Assets associated with real estate held for sale $ 211,335 $ 615,174 LIABILITIES Notes payable, net $ — $ 214,684 Accounts payable and accrued liabilities 782 8,816 Lease intangible liabilities, net 95 6,890 Security deposits and prepaid rent 1,339 6,233 Liabilities associated with real estate held for sale $ 2,216 $ 236,623 |
Schedule of Real Estate Held-for-sale | The following table summarizes properties classified as held for sale as of December 31, 2017: Property Purchase and Sale Executed Square Feet Sales Price (1) (in millions) 2180 Sand Hill November 2017 45,613 $ 82.5 2600 Campus Drive (building 6 of Peninsula Office Park) December 2017 63,050 22.5 Embarcadero Place December 2017 197,402 136.0 9300 Wilshire December 2017 61,422 13.8 Total 367,487 $ 254.8 ____________ (1) Represents gross sales price before certain credits, prorations and closing costs. |
Deferred Leasing Costs and Le29
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following summarizes the Company’s deferred leasing costs and lease intangibles, net as of December 31, 2017 December 31, 2016 Above-market leases $ 19,222 $ 23,075 Accumulated amortization (15,731 ) (12,645 ) Above-market leases, net 3,491 10,430 Deferred leasing costs and in-place lease intangibles 311,599 343,807 Accumulated amortization (132,426 ) (129,830 ) Deferred leasing costs and in-place lease intangibles, net 179,173 213,977 Below-market ground leases 68,388 68,601 Accumulated amortization (6,498 ) (4,079 ) Below-market ground leases, net 61,890 64,522 Deferred leasing costs and lease intangible assets, net (1) $ 244,554 $ 288,929 Below-market leases $ 105,233 $ 127,950 Accumulated amortization (56,265 ) (55,689 ) Below-market leases, net 48,968 72,261 Above-market ground leases 1,095 1,095 Accumulated amortization (133 ) (89 ) Above-market ground leases, net 962 1,006 Lease intangible liabilities, net (1) $ 49,930 $ 73,267 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Amortization During Period | The Company recognized the following amortization related to deferred leasing costs and lease intangibles: For the Year Ended December 31, 2017 2016 2015 Above-market leases (1) $ (6,953 ) $ (11,259 ) $ (12,534 ) Below-market leases (1) 25,015 30,993 34,607 Deferred leasing costs and in-place lease intangibles (2) (72,883 ) (84,492 ) (91,965 ) Above-market ground leases (3) 43 43 46 Below-market ground leases (3) (2,548 ) (2,203 ) (1,688 ) _____________ (1) Amortization is recorded in revenues in the Consolidated Statements of Operations. (2) Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. (3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. |
Schedule of Future Amortization Expense | The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2017 : For the Year Ended December 31, Above-market lease Deferred lease cost and in-place lease intangibles Below-market ground lease Below-market lease Above-market ground lease 2018 $ (1,529 ) $ (41,300 ) $ (2,410 ) $ 14,713 $ 43 2019 (1,014 ) (31,533 ) (2,410 ) 11,317 43 2020 (466 ) (22,966 ) (2,410 ) 8,514 43 2021 (327 ) (18,224 ) (2,410 ) 6,084 43 2022 (106 ) (13,068 ) (2,410 ) 3,575 43 Thereafter (49 ) (52,082 ) (49,840 ) 4,765 747 Total (1) $ (3,491 ) $ (179,173 ) $ (61,890 ) $ 48,968 $ 962 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Schedule of Estimated Amortization Income | The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2017 : For the Year Ended December 31, Above-market lease Deferred lease cost and in-place lease intangibles Below-market ground lease Below-market lease Above-market ground lease 2018 $ (1,529 ) $ (41,300 ) $ (2,410 ) $ 14,713 $ 43 2019 (1,014 ) (31,533 ) (2,410 ) 11,317 43 2020 (466 ) (22,966 ) (2,410 ) 8,514 43 2021 (327 ) (18,224 ) (2,410 ) 6,084 43 2022 (106 ) (13,068 ) (2,410 ) 3,575 43 Thereafter (49 ) (52,082 ) (49,840 ) 4,765 747 Total (1) $ (3,491 ) $ (179,173 ) $ (61,890 ) $ 48,968 $ 962 _____________ (1) Excludes balances related to properties that have been classified as held for sale. |
Notes Payable, net (Tables)
Notes Payable, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to the amounts included in notes payable, net as of: December 31, 2017 December 31, 2016 Interest Rate (1) Contractual Maturity Date UNSECURED NOTES PAYABLE Unsecured Revolving Credit Facility (2) $ 100,000 $ 300,000 LIBOR + 1.15% to 1.85% 4/1/2019 (3) 5-Year Term Loan due April 2020 (2)(4) 300,000 450,000 LIBOR + 1.30% to 2.20% 4/1/2020 5-Year Term Loan due November 2020 (2) 75,000 175,000 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 Registered Senior Notes (7) 400,000 — 3.95% 11/1/2027 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 (8)(9) 98,392 100,409 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 (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (8) 27,418 27,929 5.32% 3/11/2022 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (11) 101,000 101,000 3.38% 11/6/2028 Pinnacle I (12) — 129,000 3.95% 11/7/2022 Pinnacle II (12) — 87,000 4.30% 6/11/2026 TOTAL SECURED NOTES PAYABLE 464,311 682,839 TOTAL NOTES PAYABLE 2,439,311 2,707,839 Held for sale balances (12) — (216,000 ) Unamortized deferred financing costs and loan discounts (13) (17,931 ) (18,513 ) TOTAL NOTES PAYABLE, NET $ 2,421,380 $ 2,473,326 _____________ (1) Interest rate with respect to indebtedness is calculated on the basis of a 360 -day year for the actual days elapsed. Interest rates are as of December 31, 2017 , which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness. (2) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2017 , no such election had been made. (3) The maturity date may be extended once for an additional one -year term. (4) In July 2016, $300.0 million of the term loan was effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps. See Note 6 for details. (5) In July 2016, the outstanding balance of the term loan was effectively fixed at 3.36% % to 4.31% per annum through the use of two interest rate swaps. See Note 6 for details. (6) In June 2016, the outstanding balance of the term loan was effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 6 for details. (7) On October 2, 2017, the Company completed an underwritten public offering of $400.0 million of senior notes, which were issued at 99.815% of par. (8) Monthly debt service includes annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (9) On February 1, 2018, the Company repaid the full outstanding balance of the mortgage loan secured by our Rincon Center property. (10) This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71 % per annum through use of an interest rate swap. See Note 6 for details. (11) The Company has a 55% ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principle payments with a balloon payment at maturity. (12) On November 16, 2017, the Company sold its ownership interest in the consolidated joint venture that owned Pinnacle I and Pinnacle II. The debt balances related to these properties were classified as held for sale at December 31, 2016. (13) Excludes deferred financing costs related to properties held for sale and amounts related to establishing the Company’s unsecured revolving credit facility. |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2017 2016 2015 (1) Beginning of period: Cash and cash equivalents $ 83,015 $ 53,551 $ 17,753 Restricted cash 25,177 18,010 17,083 Total $ 108,192 $ 71,561 $ 34,836 End of period: Cash and cash equivalents $ 78,922 $ 83,015 $ 53,551 Restricted cash 22,358 25,177 18,010 Total $ 101,280 $ 108,192 $ 71,561 _____________ (1) Includes restricted cash that was previously included in assets held for sale as of December 31, 2014. Included in restricted cash on the Company’s Consolidated Balance Sheets at December 31, 2017 and December 31, 2016 are lockbox and reserve funds as follows: Property December 31, 2017 December 31, 2016 Rincon Center $ 14,220 $ 16,291 Element LA 3,581 2,627 Hill7 2,392 1,643 10950 Washington 1,406 1,249 Pinnacle I — 1,811 Pinnacle II — 1,382 Total $ 21,599 $ 25,003 |
Schedule of Maturities of Long-term Debt | The following table provides information regarding the Company’s future minimum principal payments due on the Company’s notes payable (before the impact of extension options, if applicable) as of December 31, 2017 : For the Year Ended December 31, Annual Principal Payments 2018 $ 98,930 2019 105,569 2020 440,095 2021 632 2022 500,085 Thereafter 1,294,000 Total $ 2,439,311 |
Schedule of Balance and Key Terms of the Unsecured Revolving Credit Facility | The following table summarizes borrowing capacity and outstanding borrowings under the unsecured revolving credit facility as of: December 31, 2017 December 31, 2016 Outstanding borrowings (1) $ 100,000 $ 300,000 Remaining borrowing capacity (1) 300,000 100,000 Total borrowing capacity $ 400,000 $ 400,000 Interest rate (2) LIBOR + 1.15% to 1.85% Facility fee-annual rate (2) 0.20% or 0.35% Contractual maturity date (3) 4/1/2019 _________________ (1) On January 30, 2018, the Company borrowed an additional $100.0 million bringing the total outstanding borrowings to $200.0 million . (2) The rate is based on the operating partnership’s leverage ratio. (3) The maturity date may be extended once for an additional one -year term. |
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels, when considering the most restrictive term: Covenant Ratio Covenant Level Leverage ratio less than 60% Unencumbered leverage ratio less than 60% Fixed charge coverage ratio greater than 1.5x Secured indebtedness leverage ratio less than 45% Unsecured interest coverage ratio greater than 2x |
Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations: Year Ended December 31, 2017 2016 2015 Gross interest expense (1) $ 94,660 $ 82,887 $ 52,437 Capitalized interest (10,655 ) (11,307 ) (6,516 ) Amortization of deferred financing costs and loan discount/premium, net 6,032 4,464 4,746 Interest expense $ 90,037 $ 76,044 $ 50,667 _________________ (1) Includes interest on the Company’s notes payable and hedging activities and extinguishment costs related to partial paydowns in our term loans of $1.1 million during the year ended December 31, 2017. |
Future Minimum Base Rents and31
Future Minimum Base Rents and Lease Payments Future Minimum Rents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2017 : Year ended Non-cancellable Subject to early termination options Total (1)(2) 2018 $ 476,777 $ 4,002 $ 480,779 2019 445,032 11,775 456,807 2020 376,361 20,232 396,593 2021 315,588 32,772 348,360 2022 246,997 45,437 292,434 Thereafter 805,449 124,383 929,832 Total $ 2,666,204 $ 238,601 $ 2,904,805 _____________ (1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less. (2) Includes properties classified as held for sale as of December 31, 2017. |
Operating Leases of Lessee Disclosure | The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2017 : 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 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. Percentage annual rent is gross income multiplied by 24.125%. This lease was prepaid through October 31, 2017. 9300 Wilshire 8/14/2032 The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%. The property related to this ground lease is expected to be sold in the first quarter of 2018. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent. 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. 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 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 gross income multiplied by 24.125%. 3176 Porter (formerly Lockheed) 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent 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%. 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). Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent. 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. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent. 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. |
Schedule of Future Minimum Lease Payments | The following table summarizes rental expense for ground leases and a corporate office lease: For the Year Ended December 31, 2017 2016 2015 Contingent rental expense $ 8,775 $ 8,651 $ 3,843 Minimum rental expense 12,412 12,085 9,196 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of December 31, 2017 : For the Year Ended December 31, Ground Leases (1)(2) 2018 $ 14,111 2019 14,161 2020 14,161 2021 14,161 2022 14,161 Thereafter 382,070 Total $ 452,825 _____________ (1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of December 31, 2017 . (2) Balance includes future minimum ground lease obligation for 9300 Wilshire which is expected to be sold in the first quarter of 2018. |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities, Recurring | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 12,586 $ — $ 12,586 $ — $ 5,935 $ — $ 5,935 Derivative liabilities — 265 — 265 — 1,303 — 1,303 _____________ (1) Included in the prepaid expenses and other assets, net line item in the Consolidated Balance Sheets. |
Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of the Company’s notes payable as of: December 31, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value Unsecured notes payable (1)(2) $ 1,974,278 $ 1,960,560 $ 2,025,000 $ 2,011,210 Secured notes payable (3) 464,311 458,441 682,839 669,924 _____________ (1) Amounts represent notes payable excluding unamortized deferred financing costs. (2) The $400.0 million senior registered notes were issued at a discount. The discount, net of amortization was $722 thousand at December 31, 2017 and is included within unsecured notes payable. (3) Includes balances related to properties that have been classified as held for sale. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Key Components of Share-based Awards | The following table outlines key components of the 2017 and 2016 OPP Plans: 2017 OPP Plan 2016 OPP Plan Maximum bonus pool, in millions $20.0 $17.5 Performance period 1/1/2017 to 12/31/2019 1/1/2016 to 12/31/2018 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The per unit fair value of one-time retention award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: Assumptions Expected price volatility for the Company 23.00% Expected price volatility for the particular REIT index 18.00% Risk-free rate 1.63% Dividend yield 3.20 The per unit fair value of OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: 2017 2016 2015 Expected price volatility for the Company 24.00% 24.00% 22.00% Expected price volatility for the particular REIT index 17.00% 17.00% 22.00% Risk-free rate 1.47% 1.09% 1.13% Dividend yield 2.30 2.40 1.50 |
Nonvested Restricted Stock Shares Activity | The following table summarizes the activity and status of all unvested awards: 2017 2016 2015 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 887,179 $ 31.09 827,950 $ 28.92 543,707 $ 26.43 Granted 918,884 34.37 489,826 30.95 629,504 29.01 Vested (705,508 ) 31.42 (430,597 ) 26.75 (335,544 ) 24.80 Canceled (13,369 ) 32.14 — — (9,717 ) 38.17 Unvested at December 31 1,087,186 $ 33.64 887,179 $ 31.09 827,950 $ 28.92 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2017 918,884 $ 34.37 (705,508 ) $ 24,155 2016 489,826 30.95 (430,597 ) 14,736 2015 629,504 29.01 (335,544 ) 9,606 |
Stock Compensation Related to OPP Plans and Restricted Stock Awards | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2017 2016 2015 Expensed stock compensation (1) $ 15,079 $ 14,144 $ 8,421 Capitalized stock compensation (2) 836 510 411 Total stock compensation (3) $ 15,915 $ 14,654 $ 8,832 _________________ (1) Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. (2) Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. (3) Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income (loss) available to common stockholders: For the Year Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) available to common stockholders $ 67,587 $ 27,218 $ (16,397 ) Effect of dilutive instruments — 451 — Diluted net income (loss) available to common stockholders $ 67,587 $ 27,669 $ (16,397 ) Denominator: Basic weighted average common shares outstanding 153,488,730 106,188,902 85,927,216 Effect of dilutive instruments (1) 394,084 4,180,153 — Diluted weighted average common shares outstanding 153,882,814 110,369,055 85,927,216 Basic earnings per common share $ 0.44 $ 0.26 $ (0.19 ) Diluted earnings per common share $ 0.44 $ 0.25 $ (0.19 ) _____________ (1) The Company includes unvested awards and convertible common units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income (loss) available to common unitholders: For the Year Ended December 31, 2017 2016 2015 Numerator: Basic net income (loss) available to common unitholders $ 67,962 $ 33,066 $ (38,366 ) Effective of dilutive instruments — 451 — Diluted net income (loss) available to common unitholders $ 67,962 $ 33,517 $ (38,366 ) Denominator: Basic weighted average common units outstanding 154,276,773 145,595,246 128,948,077 Effect of dilutive instruments (1) 394,084 1,144,000 — Diluted weighted average common units outstanding 154,670,857 146,739,246 128,948,077 Basic earnings per common unit $ 0.44 $ 0.23 $ (0.30 ) Diluted earnings per common unit $ 0.44 $ 0.23 $ (0.30 ) _____________ (1) The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of the Company’s derivatives on accumulated other comprehensive income (“OCI”): Hudson Pacific Properties, Inc. Stockholder’s Equity Non-controlling interests Total Equity Balance at January 1, 2015 $ (2,443 ) $ (218 ) $ (2,661 ) Unrealized loss recognized in OCI due to change in fair value (4,976 ) (2,687 ) (7,663 ) Loss reclassified from OCI into income (as interest expense) 6,338 3,922 10,260 Net change in OCI 1,362 1,235 2,597 Balance at December 31, 2015 (1,081 ) 1,017 (64 ) Unrealized loss recognized in OCI due to change in fair value 4,122 (6,989 ) (2,867 ) Loss reclassified from OCI into income (as interest expense) 6,455 2,354 8,809 Net change in OCI 10,577 (4,635 ) 5,942 Balance at December 31, 2016 9,496 (3,618 ) 5,878 Unrealized loss recognized in OCI due to change in fair value 3,011 18 3,029 Loss reclassified from OCI into income (as interest expense) 4,342 27 4,369 Net change in OCI 7,353 45 7,398 Reclassification related to redemption of common units in the operating partnership (3,622 ) 3,622 — Balance at December 31, 2017 $ 13,227 $ 49 $ 13,276 |
Schedule of Other Ownership Interests | The following table summarizes the ownership of common units, excluding unvested restricted units as of: December 31, 2017 December 31, 2016 December 31, 2015 Company-owned common units in the operating partnership 155,602,508 136,492,235 89,153,780 Company’s ownership interest percentage 99.6 % 93.5 % 61.3 % Non-controlling common units in the operating partnership (1) 569,045 9,450,620 56,296,315 Non-controlling ownership interest percentage (1) 0.4 % 6.5 % 38.7 % _____________ (1) Represents common units held by certain of the Company’s executive officers and directors, certain of their affiliates and other outside investors. |
Non-controlling Interests | The following table summarizes the activity related to common units from January 1, 2016 to December 31, 2017 : Non-controlling interest in common units Balance at January 1, 2016 56,296,315 May redemption (1) (10,117,223 ) July redemption (1) (19,195,373 ) November redemption (1) (17,533,099 ) Balance at December 31, 2016 9,450,620 January redemption (1) (8,881,575 ) Balance at December 31, 2017 569,045 _____________ (1) The common unitholders requested the operating partnership repurchase common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemptions using the proceeds from registered underwritten public offering of common stock. |
Reconciliation Of Equity From Statement Of Equity To Statement Of Operations | The following table reconciles the net income (loss) allocated to common stock and operating partnership units on the Consolidated Statements of Equity to the common stock and the common unit net income (loss) allocation on the Consolidated Statements of Operations for the years ended: Hudson Pacific Properties, Inc. Hudson Pacific Properties, L.P. 2017 2016 2015 2017 2016 2015 Net income (loss) allocation for common stock/units on the Consolidated Statements of Equity/Capital $ 68,590 $ 27,984 $ (10,071 ) $ 68,965 $ 33,832 $ (32,040 ) Net income attributable to participating securities (1,003 ) (766 ) (356 ) (1,003 ) (766 ) (356 ) Series B transaction costs allocation — — (5,970 ) — — (5,970 ) Net income (loss) allocation for common stock/units on the Consolidated Statements of Operations $ 67,587 $ 27,218 $ (16,397 ) $ 67,962 $ 33,066 $ (38,366 ) |
Schedule of Common Stock Offering | The following table summarizes the common stock offering in 2015, 2016 and 2017: Number of Common Shares January 20, 2015 (1) 12,650,000 April 1, 2015 (2) 8,626,311 May 16, 2016 (3) 10,117,223 July 21, 2016 (3) 19,195,373 November 28, 2016 (3) 17,533,099 January 10, 2017 (3) 8,881,575 March 3, 2017 (4) 9,775,000 _____________ (1) Represents a common stock offering of 11,000,000 shares of common stock and the exercise of the underwriters’ option to purchase an additional 1,650,000 shares of our common stock at the public offering price of $31.75 per share. Total proceeds from the public offering, after underwriters’ discount, were approximately $385.6 million (before transaction costs). (2) Represents a common stock issuance in connection with the EOP Acquisition. The issuance of common stock is part of the consideration paid. (3) Proceeds from the offering were used to repurchase common units in the operating partnership. (4) Represents a common stock offering of 9,775,000 shares of common stock. Proceeds from the offering were used to fully repay a $255.0 million balance outstanding under its unsecured revolving credit facility. The following table summarizes the ATM activity: 2017 2016 2015 Shares of common stock sold during the period — 165,000 — Common stock price ranges N/A $33.54 to $33.95 N/A |
Schedule of Dividends | The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distributions Per Share Total Non-qualified Qualified Capital Gain Distributions (1) Return of Capital 3/20/2017 3/30/2017 $ 0.25000 $ 0.14633 $ 0.14633 $ — $ 0.04023 $ 0.06345 6/20/2017 6/30/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 9/19/2017 9/29/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 12/18/2017 12/28/2017 0.25000 0.14633 0.14633 — 0.04023 0.06345 Totals $ 1.00000 $ 0.58532 $ 0.58532 $ — $ 0.16092 $ 0.25380 100 % 58.532 % 16.09 % 25.38 % _____________ (1) $0.03000 of the $0.04023 capital gain distributions should be characterized as unrecaptured Section 1250 gain. |
Quarterly Financial Informati36
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The tables below present selected quarterly information for 2017 and 2016 for the Company: For the Three Months Ended (1) December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Total revenues $ 189,333 $ 190,021 $ 180,500 $ 168,285 Income from operations 43,832 36,160 28,108 28,503 Net income 48,944 14,510 6,954 24,153 Net income attributable to the Company’s stockholders 32,455 11,064 3,553 20,515 Net income attributable to common stockholders’ per share—basic 0.21 0.07 0.02 0.14 Net income attributable to common stockholders’ per share—diluted 0.21 0.07 0.02 0.14 For the Three Months Ended (1) December 31, 2016 September 30, 2016 June 30, 2016 March 31, 2016 Total revenues $ 167,198 $ 164,583 $ 154,321 $ 153,537 Income from operations 26,845 23,740 19,811 19,011 Net income 28,530 5,217 4,035 5,976 Net income attributable to the Company’s stockholders 22,279 1,847 839 2,253 Net income attributable to common stockholders’ per share—basic 0.18 0.02 0.01 0.03 Net income attributable to common stockholders’ per share— diluted 0.18 0.02 0.01 0.03 _____________ (1) The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding. |
Organization (Details)
Organization (Details) $ in Millions | Apr. 01, 2015USD ($)ft²projectpropertyshares | Dec. 31, 2017ft²property |
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 14,541,458 | |
Number of Properties | property | 54 | |
Office | ||
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 13,291,531 | |
Number of Properties | property | 51 | |
Media & Entertainment | ||
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 1,249,927 | |
Number of Properties | property | 3 | |
EOP Northern California Portfolio | ||
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 8,200,000 | |
Payments to acquire businesses | $ | $ 1,750 | |
Shares issued as consideration for business combination | shares | 63,474,791 | |
EOP Northern California Portfolio | Office Building | ||
Business Acquisition [Line Items] | ||
Number of real estate properties acquired | property | 26 | |
EOP Northern California Portfolio | Development Parcel | ||
Business Acquisition [Line Items] | ||
Number of real estate development projects acquired | project | 2 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Narrative (Details) | Nov. 16, 2017 | Dec. 31, 2017USD ($)revenue_streampropertyjoint_venturesegment | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($) |
Accounting Policies [Line Items] | ||||
Number of real estate properties, held-for-sale | property | 4 | 8 | ||
Investment in unconsolidated entities | $ 14,240,000 | $ 37,228,000 | ||
Construction costs capitalization period after substantially complete | 1 year | |||
Capitalized personnel costs | $ 10,853,000 | 9,347,000 | $ 7,349,000 | |
Capitalized interest | 10,655,000 | 11,307,000 | 6,516,000 | |
Impairment of long-lived assets | 0 | 0 | 0 | |
Net cash provided by operating activities | $ 292,959,000 | 226,774,000 | 175,783,000 | |
Number of operating segments | segment | 2 | |||
Income tax expense | $ 0 | |||
Number of revenue streams identified | revenue_stream | 3 | |||
Number of revenue streams to be accounted for under ASC 606 | revenue_stream | 2 | |||
Rental revenues and tenant recoveries | $ 675,600,000 | |||
Capitalized indirect leasing costs | 8,900,000 | |||
Future undiscounted minimum lease payments under ground leases | $ 452,825,000 | |||
Accounting Standards Update 2016-18 | ||||
Accounting Policies [Line Items] | ||||
Net cash provided by operating activities | $ 7,200,000 | $ 900,000 | ||
Building and improvements | ||||
Accounting Policies [Line Items] | ||||
Estimated useful life | 39 years | |||
Land improvements | ||||
Accounting Policies [Line Items] | ||||
Estimated useful life | 15 years | |||
Furniture and fixtures | Minimum | ||||
Accounting Policies [Line Items] | ||||
Estimated useful life | 5 years | |||
Furniture and fixtures | Maximum | ||||
Accounting Policies [Line Items] | ||||
Estimated useful life | 7 years | |||
VIE, primary beneficiary | ||||
Accounting Policies [Line Items] | ||||
Number of joint ventures meeting the VIE definition | joint_venture | 3 | |||
Number of joint ventures consolidated | joint_venture | 2 | |||
VIE, primary beneficiary | Pinnacle I and II | ||||
Accounting Policies [Line Items] | ||||
VIE, ownership percentage | 65.00% | |||
VIE, primary beneficiary | 1455 Market | ||||
Accounting Policies [Line Items] | ||||
VIE, ownership percentage | 55.00% | |||
VIE, primary beneficiary | Hill7 | ||||
Accounting Policies [Line Items] | ||||
VIE, ownership percentage | 55.00% | |||
VIE, not primary beneficiary | ||||
Accounting Policies [Line Items] | ||||
Number of joint ventures not consolidated | joint_venture | 1 | |||
VIE, ownership percentage | 21.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 78,922 | $ 83,015 | $ 53,551 | $ 17,753 |
Restricted cash | 22,358 | 25,177 | 18,010 | 17,083 |
Total cash and cash equivalents and restricted cash | $ 101,280 | $ 108,192 | $ 71,561 | $ 34,836 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Accounts Receivable Net of Allowance for Uncollectable Tenant Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 6,835 | $ 8,834 |
Allowance for doubtful accounts | (2,472) | (1,827) |
Accounts receivable, net | 4,363 | 7,007 |
Straight-line rent receivables, net | 109,457 | 79,209 |
Allowance for Straight-Line Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Straight-line rent receivables | 109,457 | 79,345 |
Allowance for doubtful accounts | $ 0 | $ (136) |
Summary of Significant Accoun41
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Variable Interest Entities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Investment in unconsolidated entities | $ 14,240 | $ 37,228 |
Goodwill | 8,754 | 8,754 |
Derivative assets | 12,586 | 5,935 |
Other | 25,558 | 25,297 |
Prepaid expenses and other assets, net | $ 61,138 | $ 77,214 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Security Deposits and Prepaid Rent (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Security deposits | $ 36,458 | $ 29,837 |
Prepaid rent | 27,573 | 37,041 |
Security deposits and prepaid rent | $ 64,031 | $ 66,878 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Investment Property (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2017USD ($)ft² | May 31, 2017USD ($)ft²a | Apr. 30, 2017USD ($) | Dec. 31, 2016USD ($)ft² | Oct. 31, 2016USD ($)ft² | Jul. 31, 2016USD ($)ft² | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($)ft² | Jun. 29, 2017USD ($) | May 01, 2017USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Land | $ 1,155,037 | $ 1,302,907 | $ 1,155,037 | |||||||
Building and improvements | 4,069,005 | 4,480,993 | 4,069,005 | |||||||
Tenant improvements | 354,940 | 411,706 | 354,940 | |||||||
Furniture and fixtures | 4,264 | 8,608 | 4,264 | |||||||
Property under development | 295,234 | 219,227 | 295,234 | |||||||
Investment in real estate, at cost | 5,878,480 | $ 6,423,441 | $ 5,878,480 | |||||||
Area of real estate acquired | ft² | 373,150 | 968,831 | ||||||||
Purchase price of properties acquired, asset acquisitions | $ 253,200 | |||||||||
Purchase price of properties acquired | $ 640,800 | |||||||||
Area of real estate property | ft² | 367,487 | |||||||||
Notes payable | $ 2,439,311 | |||||||||
Investment in real estate, asset acquisitions | 255,848 | |||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 36,198 | 1,886 | 36,198 | |||||||
Total assets assumed | 637,981 | $ 257,734 | 637,981 | |||||||
Deferred leasing costs and in-place lease intangibles | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Weighted average amortization period | 1 year 2 months 15 days | |||||||||
Secured Debt | Hill7 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Notes payable | 101,000 | 101,000 | ||||||||
Sunset Las Palmas Studios | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Asset acquisition, equipment purchased | $ 2,800 | |||||||||
Investment in real estate, asset acquisitions | $ 202,723 | |||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 1,741 | |||||||||
Total assets assumed | 204,464 | |||||||||
Sunset Las Palmas Studios | Revolving Credit Facility | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Proceeds from unsecured lines of credit | $ 150,000 | |||||||||
11601 Wilshire Land | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Investment in real estate, asset acquisitions | 50,034 | |||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 0 | |||||||||
Total assets assumed | $ 50,034 | |||||||||
6666 Santa Monica | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Investment in real estate, asset acquisitions | $ 3,091 | |||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 145 | |||||||||
Total assets assumed | $ 3,236 | |||||||||
Hill7 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Joint venture, ownership percentage | 55.00% | |||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 7,617 | 7,617 | ||||||||
Total assets assumed | 180,167 | 180,167 | ||||||||
Page Mill Hill | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Deferred leasing costs and lease intangibles, asset acquisitions | 14,697 | 14,697 | ||||||||
Total assets assumed | $ 149,895 | $ 149,895 | ||||||||
Media & Entertainment | Sunset Las Palmas Studios | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate acquired | ft² | 369,000 | |||||||||
Purchase price of properties acquired, asset acquisitions | $ 200,000 | |||||||||
Area of real estate property | a | 15 | |||||||||
Media & Entertainment | 6666 Santa Monica | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate acquired | ft² | 4,150 | |||||||||
Purchase price of properties acquired, asset acquisitions | $ 3,200 | |||||||||
Office | 11601 Wilshire | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate acquired | ft² | 500,475 | |||||||||
Purchase price of properties acquired, business acquisitions | $ 311,000 | |||||||||
Office | 11601 Wilshire Land | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price of properties acquired, asset acquisitions | $ 50,000 | |||||||||
Office | Hill7 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate acquired | ft² | 285,680 | |||||||||
Purchase price of properties acquired, asset acquisitions | $ 179,800 | |||||||||
Office | Page Mill Hill | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Area of real estate acquired | ft² | 182,676 | |||||||||
Purchase price of properties acquired, asset acquisitions | $ 150,000 |
Investment in Real Estate - Pur
Investment in Real Estate - Purchase Price Allocation for Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Asset acquisition, allocation of consideration paid | ||
Investment in real estate | $ 597,751 | |
Land Interest | 7,836 | |
Above-market leases | 474 | |
Below-market ground leases | 12,337 | |
Deferred leasing costs and lease intangibles | 36,198 | $ 1,886 |
Below-market leases | (16,615) | |
Total assets assumed | $ 637,981 | $ 257,734 |
Below Market Lease | ||
Asset acquisition, allocation of consideration paid | ||
Weighted average amortization period | 6 years 4 months 20 days | |
Above-market leases | ||
Asset acquisition, allocation of consideration paid | ||
Weighted average amortization period | 5 years 4 months 20 days | |
Below-market ground leases | ||
Asset acquisition, allocation of consideration paid | ||
Weighted average amortization period | 33 years 2 months | |
Deferred Leasing Costs and Lease Intangibles, Net | ||
Asset acquisition, allocation of consideration paid | ||
Weighted average amortization period | 5 years 9 months | |
Hill7 | ||
Asset acquisition, allocation of consideration paid | ||
Investment in real estate | $ 173,967 | |
Land Interest | 0 | |
Above-market leases | 0 | |
Below-market ground leases | 0 | |
Deferred leasing costs and lease intangibles | 7,617 | |
Below-market leases | (1,417) | |
Total assets assumed | 180,167 | |
Page Mill Hill | ||
Asset acquisition, allocation of consideration paid | ||
Investment in real estate | 131,402 | |
Land Interest | 0 | |
Above-market leases | 307 | |
Below-market ground leases | 12,125 | |
Deferred leasing costs and lease intangibles | 14,697 | |
Below-market leases | (8,636) | |
Total assets assumed | 149,895 | |
11601 Wilshire | ||
Business combination, allocation of consideration paid | ||
Investment in real estate, net | 292,382 | |
Land Interest | 7,836 | |
Above-market leases | 167 | |
Below-market ground leases | 212 | |
Deferred leasing costs and lease intangibles | 13,884 | |
Below-market leases | (6,562) | |
Total assets assumed, asset acquisition | $ 307,919 |
Investment in Real Estate - Sch
Investment in Real Estate - Schedule of Dispositions (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Nov. 30, 2017USD ($)ft² | Mar. 31, 2017USD ($)ft² | Feb. 28, 2017USD ($)ft² | Nov. 30, 2016USD ($)ft² | Jun. 30, 2016USD ($)ft² | Apr. 30, 2016USD ($)ft² | Jan. 31, 2016USD ($)ft² | Sep. 29, 2015USD ($)ft² | May 31, 2015USD ($)ft² | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($)ft² | Dec. 31, 2015USD ($)ft² | Nov. 16, 2017USD ($) | Jan. 07, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 823,261 | 921,343 | 483,862 | |||||||||||
Sales Price | $ 436,800 | $ 367,400 | $ 179,000 | |||||||||||
Disposal Group, Not Discontinued Operations | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Notes payable, held-for-sale | $ 0 | $ 216,000 | ||||||||||||
222 Kearny Street | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 148,797 | |||||||||||||
Sales Price | $ 51,800 | |||||||||||||
3402 Pico | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 50,687 | |||||||||||||
Sales Price | $ 35,000 | |||||||||||||
Pinnacle I and II | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 623,777 | |||||||||||||
Sales Price | $ 350,000 | |||||||||||||
Pinnacle I and II | Disposal Group, Not Discontinued Operations | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Notes payable, held-for-sale | $ 216,000 | |||||||||||||
Bayhill Office Center | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 554,328 | |||||||||||||
Sales Price | $ 215,000 | |||||||||||||
Patrick Henry | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 70,520 | |||||||||||||
Sales Price | $ 19,000 | |||||||||||||
One Bay Plaza | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 195,739 | |||||||||||||
Sales Price | $ 53,400 | |||||||||||||
12655 Jefferson | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 100,756 | |||||||||||||
Sales Price | $ 80,000 | |||||||||||||
First Financial | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 223,679 | |||||||||||||
Sales Price | $ 89,000 | |||||||||||||
Bay Park Plaza | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Area of real estate property | ft² | 260,183 | |||||||||||||
Sales Price | $ 90,000 | |||||||||||||
1455 Market | ||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||
Joint venture, ownership percentage | 45.00% |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)ft²property | Dec. 31, 2016USD ($)property | Dec. 31, 2015USD ($) | Nov. 30, 2017USD ($)ft² | |
Business Acquisition [Line Items] | ||||
Gains on sale of real estate | $ 45,574 | $ 30,389 | $ 30,471 | |
Gain related to sale of an option to purchase land | $ 7,500 | |||
Number of real estate properties, held-for-sale | property | 4 | 8 | ||
Area of real estate property | ft² | 367,487 | |||
Proceeds from disposition of real estate held-for-sale | $ 254,800 | |||
2180 Sand Hill Road | ||||
Business Acquisition [Line Items] | ||||
Area of real estate property | ft² | 45,613 | |||
Proceeds from disposition of real estate held-for-sale | $ 82,500 | |||
2600 Campus Drive | ||||
Business Acquisition [Line Items] | ||||
Area of real estate property | ft² | 63,050 | |||
Proceeds from disposition of real estate held-for-sale | $ 22,500 | |||
Embarcadero Place | ||||
Business Acquisition [Line Items] | ||||
Area of real estate property | ft² | 197,402 | |||
Proceeds from disposition of real estate held-for-sale | $ 136,000 | |||
9300 Wilshire | ||||
Business Acquisition [Line Items] | ||||
Area of real estate property | ft² | 61,422 | |||
Proceeds from disposition of real estate held-for-sale | $ 13,800 |
Investment in Real Estate - R47
Investment in Real Estate - Real Estate Held-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets associated with real estate held for sale | $ 211,335 | $ 615,174 |
Liabilities associated with real estate held for sale | 2,216 | 236,623 |
Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Investment in real estate, net | 204,895 | 580,261 |
Accounts receivable, net | 85 | 183 |
Straight-line rent receivables, net | 2,234 | 8,849 |
Deferred leasing costs and lease intangible assets, net | 4,063 | 23,078 |
Prepaid expenses and other assets, net | 58 | 2,803 |
Assets associated with real estate held for sale | 211,335 | 615,174 |
Notes payable, net | 0 | 214,684 |
Accounts payable and accrued liabilities | 782 | 8,816 |
Lease intangible liabilities, net | 95 | 6,890 |
Security deposits and prepaid rent | 1,339 | 6,233 |
Liabilities associated with real estate held for sale | $ 2,216 | $ 236,623 |
Deferred Leasing Costs and Le48
Deferred Leasing Costs and Lease Intangibles, net (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles, net | $ 244,554 | $ 288,929 |
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Off-market leases, net | 49,930 | 73,267 |
Above-market leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 19,222 | 23,075 |
Accumulated amortization | (15,731) | (12,645) |
Deferred leasing costs and lease intangibles, net | 3,491 | 10,430 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 311,599 | 343,807 |
Accumulated amortization | (132,426) | (129,830) |
Deferred leasing costs and lease intangibles, net | 179,173 | 213,977 |
Below-market ground leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 68,388 | 68,601 |
Accumulated amortization | (6,498) | (4,079) |
Deferred leasing costs and lease intangibles, net | 61,890 | 64,522 |
Below-market leases | ||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Below-market leases, net | 105,233 | 127,950 |
Above-market ground leases, net | (56,265) | (55,689) |
Off-market leases, net | 48,968 | 72,261 |
Above-market ground leases | ||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Below-market leases, net | 1,095 | 1,095 |
Above-market ground leases, net | (133) | (89) |
Off-market leases, net | $ 962 | $ 1,006 |
Deferred Leasing Costs and Le49
Deferred Leasing Costs and Lease Intangibles, net - Future Amortization Expense For Finitle-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | $ (18,062) | $ (19,734) | $ (22,073) |
Deferred leasing costs and lease intangibles, net | (244,554) | (288,929) | |
Above-market leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | (6,953) | (11,259) | (12,534) |
2,018 | (1,529) | ||
2,019 | (1,014) | ||
2,020 | (466) | ||
2,021 | (327) | ||
2,022 | (106) | ||
Thereafter | (49) | ||
Deferred leasing costs and lease intangibles, net | (3,491) | (10,430) | |
Deferred leasing costs and in-place lease intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | (72,883) | (84,492) | (91,965) |
2,018 | (41,300) | ||
2,019 | (31,533) | ||
2,020 | (22,966) | ||
2,021 | (18,224) | ||
2,022 | (13,068) | ||
Thereafter | (52,082) | ||
Deferred leasing costs and lease intangibles, net | (179,173) | (213,977) | |
Below-market ground leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | (2,548) | (2,203) | $ (1,688) |
2,018 | (2,410) | ||
2,019 | (2,410) | ||
2,020 | (2,410) | ||
2,021 | (2,410) | ||
2,022 | (2,410) | ||
Thereafter | (49,840) | ||
Deferred leasing costs and lease intangibles, net | $ (61,890) | $ (64,522) |
Deferred Leasing Costs and Le50
Deferred Leasing Costs and Lease Intangibles, net - Future Amortization Expense For Finite-lived Intangible Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | |||
Amortization of above- and below-market leases, net | $ (18,062) | $ (19,734) | $ (22,073) |
Off-market leases, net | 49,930 | 73,267 | |
Below-market leases | |||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | |||
Amortization of above- and below-market leases, net | 25,015 | 30,993 | 34,607 |
2,018 | 14,713 | ||
2,019 | 11,317 | ||
2,020 | 8,514 | ||
2,021 | 6,084 | ||
2,022 | 3,575 | ||
Thereafter | 4,765 | ||
Off-market leases, net | 48,968 | 72,261 | |
Above-market ground leases | |||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | |||
Amortization of above- and below-market leases, net | 43 | 43 | $ 46 |
2,018 | 43 | ||
2,019 | 43 | ||
2,020 | 43 | ||
2,021 | 43 | ||
2,022 | 43 | ||
Thereafter | 747 | ||
Off-market leases, net | $ 962 | $ 1,006 |
Notes Payable, net - Summary of
Notes Payable, net - Summary of Outstanding Indebtedness (Details) | Oct. 02, 2017USD ($) | May 03, 2016USD ($) | Apr. 01, 2015USD ($)derivative | Jul. 31, 2013USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2016USD ($)derivative | Jun. 30, 2016 | May 01, 2015 |
Debt | |||||||||
Notes payable | $ 2,439,311,000 | ||||||||
Notes payable, including held-for-sale | 2,439,311,000 | $ 2,707,839,000 | |||||||
Deferred financing costs and discounts, net | (17,931,000) | (18,513,000) | |||||||
Notes payable, net | $ 2,421,380,000 | 2,473,326,000 | |||||||
Duration used in interest rate calculation | 360 days | ||||||||
Hill7 | |||||||||
Debt | |||||||||
Joint venture, ownership percentage | 55.00% | ||||||||
Interest Rate Contract | |||||||||
Debt | |||||||||
Derivative asset notional amount | $ 300,000,000 | $ 300,000,000 | |||||||
Number of derivative instruments held | derivative | 2 | ||||||||
Disposal Group, Not Discontinued Operations | |||||||||
Debt | |||||||||
Notes payable, held-for-sale | $ 0 | 216,000,000 | |||||||
5-Year Term Loan due April 2020 | Interest Rate Contract | |||||||||
Debt | |||||||||
Number of derivative instruments held | derivative | 2 | ||||||||
7-Year Term Loan due November 2022 | Interest Rate Contract | |||||||||
Debt | |||||||||
Derivative asset notional amount | $ 125,000,000 | ||||||||
Met Park North | |||||||||
Debt | |||||||||
Notes payable | $ 64,500,000 | ||||||||
Debt instrument term | 7 years | ||||||||
Fixed interest rate percentage | 371.00% | ||||||||
Met Park North | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.55% | ||||||||
Rincon Center and 10950 Washington | |||||||||
Debt | |||||||||
Periodic payment, debt service payment term | 30 years | ||||||||
Unsecured Debt | |||||||||
Debt | |||||||||
Notes payable | $ 1,975,000,000 | 2,025,000,000 | |||||||
Unsecured Debt | Unsecured Revolving Credit Facility | |||||||||
Debt | |||||||||
Notes payable | $ 100,000,000 | 300,000,000 | |||||||
Debt instrument term | 1 year | ||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.15% | ||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.85% | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | |||||||||
Debt | |||||||||
Notes payable | $ 300,000,000 | 450,000,000 | |||||||
Debt instrument term | 5 years | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Minimum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 2.75% | 2.66% | |||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.30% | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Maximum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 3.65% | 3.56% | |||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 2.20% | ||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | |||||||||
Debt | |||||||||
Notes payable | $ 75,000,000 | 175,000,000 | |||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.30% | ||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 2.20% | ||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | |||||||||
Debt | |||||||||
Notes payable | $ 350,000,000 | 350,000,000 | |||||||
Number of derivative instruments held | derivative | 2 | ||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | Minimum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 3.36% | ||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.60% | ||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | Maximum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 4.31% | ||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 2.55% | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | |||||||||
Debt | |||||||||
Notes payable | $ 125,000,000 | 125,000,000 | |||||||
Debt instrument term | 7 years | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Minimum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 3.03% | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.60% | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Maximum | |||||||||
Debt | |||||||||
Fixed interest rate percentage | 3.98% | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Maximum | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 2.55% | ||||||||
Unsecured Debt | Series A Notes | |||||||||
Debt | |||||||||
Notes payable | $ 110,000,000 | 110,000,000 | |||||||
Interest Rate | 4.34% | ||||||||
Unsecured Debt | Series E Notes | |||||||||
Debt | |||||||||
Notes payable | $ 50,000,000 | 50,000,000 | |||||||
Interest Rate | 3.66% | ||||||||
Unsecured Debt | Series B Notes | |||||||||
Debt | |||||||||
Notes payable | $ 259,000,000 | 259,000,000 | |||||||
Interest Rate | 4.69% | ||||||||
Unsecured Debt | Series D Notes | |||||||||
Debt | |||||||||
Notes payable | $ 150,000,000 | 150,000,000 | |||||||
Interest Rate | 3.98% | ||||||||
Unsecured Debt | Registered Senior Notes | |||||||||
Debt | |||||||||
Notes payable | $ 400,000,000 | 0 | |||||||
Interest Rate | 3.95% | ||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||
Percentage of part at debt issuance | 99.815% | ||||||||
Unsecured Debt | Series C Notes | |||||||||
Debt | |||||||||
Notes payable | $ 56,000,000 | 56,000,000 | |||||||
Interest Rate | 4.79% | ||||||||
Secured Debt | |||||||||
Debt | |||||||||
Notes payable, including held-for-sale | $ 464,311,000 | 682,839,000 | |||||||
Secured Debt | Rincon Center | |||||||||
Debt | |||||||||
Notes payable | $ 98,392,000 | 100,409,000 | |||||||
Interest Rate | 5.13% | ||||||||
Secured Debt | Sunset Gower Sunset Bronson | |||||||||
Debt | |||||||||
Notes payable | $ 5,001,000 | 5,001,000 | |||||||
Secured Debt | Sunset Gower Sunset Bronson | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 2.25% | ||||||||
Secured Debt | Met Park North | |||||||||
Debt | |||||||||
Notes payable | $ 64,500,000 | 64,500,000 | |||||||
Secured Debt | Met Park North | London Interbank Offered Rate (LIBOR) | |||||||||
Debt | |||||||||
Basis spread on variable rate | 1.55% | ||||||||
Secured Debt | 10950 Washington | |||||||||
Debt | |||||||||
Notes payable | $ 27,418,000 | 27,929,000 | |||||||
Interest Rate | 5.32% | ||||||||
Secured Debt | Element LA | |||||||||
Debt | |||||||||
Notes payable | $ 101,000,000 | ||||||||
Notes payable, held-for-sale | $ 168,000,000 | 168,000,000 | |||||||
Interest Rate | 4.59% | ||||||||
Secured Debt | Hill7 | |||||||||
Debt | |||||||||
Notes payable | 101,000,000 | ||||||||
Interest Rate | 3.38% | ||||||||
Secured Debt | Pinnacle I | |||||||||
Debt | |||||||||
Notes payable, held-for-sale | $ 0 | 129,000,000 | |||||||
Interest Rate | 3.95% | ||||||||
Secured Debt | Pinnacle II | |||||||||
Debt | |||||||||
Notes payable | $ 0 | $ 87,000,000 | |||||||
Interest Rate | 4.30% |
Notes Payable, net - Additional
Notes Payable, net - Additional Information (Details) | Jan. 30, 2018USD ($) | Jan. 23, 2018USD ($) | Nov. 16, 2017USD ($) | Oct. 02, 2017USD ($) | May 03, 2016 | Feb. 13, 2016 | Nov. 17, 2015USD ($) | Nov. 16, 2015USD ($) | Apr. 01, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from disposition of real estate held-for-sale | $ 254,800,000 | |||||||||||
Notes payable | $ 2,439,311,000 | |||||||||||
Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum leverage ratio | 0.6 | |||||||||||
Unencumbered leverage ratio | 0.6 | |||||||||||
Fixed charge coverage ratio | 1.5 | |||||||||||
Maximum secured indebtedness ratio | 0.45 | |||||||||||
Minimum unsecured interest coverage ratio | 2 | |||||||||||
A & R Credit Facilities | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 2,000,000,000 | |||||||||||
Sunset Gower Sunset Bronson | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Principal amount guaranteed | 19.50% | |||||||||||
Maximum guarantee amount | $ 1,000,000 | |||||||||||
Unsecured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 1,975,000,000 | $ 2,025,000,000 | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 1 year | |||||||||||
Maximum borrowing capacity | $ 400,000,000 | 400,000,000 | ||||||||||
Notes payable | 100,000,000 | 300,000,000 | ||||||||||
Remaining borrowing capacity | $ 300,000,000 | 100,000,000 | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commitment fee percentage | 0.20% | |||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.15% | |||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commitment fee percentage | 0.35% | |||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.85% | |||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of Long-term Debt | $ 250,000,000 | |||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 75,000,000 | 175,000,000 | ||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.20% | |||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayments of secured debt | $ 100,000,000 | |||||||||||
Debt instrument term | 5 years | |||||||||||
Debt instrument, face amount | $ 175,000,000 | |||||||||||
Unused commitment fee | 0.20% | |||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners, L.P. | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners, L.P. | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.20% | |||||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 5 years | |||||||||||
Notes payable | $ 300,000,000 | 450,000,000 | ||||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.30% | |||||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.20% | |||||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 5 years | |||||||||||
Repayments of Long-term Debt | 150,000,000 | |||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 7 years | |||||||||||
Notes payable | $ 125,000,000 | 125,000,000 | ||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.60% | |||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.55% | |||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 7 years | |||||||||||
Debt instrument, face amount | $ 125,000,000 | |||||||||||
Unused commitment fee | 0.20% | |||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners, L.P. | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.60% | |||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners, L.P. | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.55% | |||||||||||
Unsecured Debt | New Credit Agreement - Term Loan | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 475,000,000 | |||||||||||
Unsecured Debt | Term Loan 2014 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 5 years | |||||||||||
Debt instrument, face amount | $ 550,000,000 | $ 150,000,000 | ||||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument term | 7 years | |||||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | 350,000,000 | |||||||||||
Unsecured Debt | Senior Notes | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 425,000,000 | |||||||||||
Prepayment, percent of principal, minimum | 5.00% | |||||||||||
Prepayment, percent of principal | 100.00% | |||||||||||
Unsecured Debt | Series A Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 110,000,000 | 110,000,000 | ||||||||||
Interest Rate | 4.34% | |||||||||||
Unsecured Debt | Series A Notes | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 110,000,000 | |||||||||||
Unsecured Debt | Series B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 259,000,000 | 259,000,000 | ||||||||||
Interest Rate | 4.69% | |||||||||||
Unsecured Debt | Series B Notes | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | 259,000,000 | |||||||||||
Unsecured Debt | Series C Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 56,000,000 | 56,000,000 | ||||||||||
Interest Rate | 4.79% | |||||||||||
Unsecured Debt | Series C Notes | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 56,000,000 | |||||||||||
Unsecured Debt | Series D Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 150,000,000 | 150,000,000 | ||||||||||
Interest Rate | 3.98% | |||||||||||
Unsecured Debt | Series E Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 50,000,000 | 50,000,000 | ||||||||||
Interest Rate | 3.66% | |||||||||||
Senior Notes | Senior Notes Due November 1, 2027 | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | 400,000,000 | |||||||||||
Proceeds from issuance of private placement of debt | $ 396,700,000 | |||||||||||
Percentage of part at debt issuance | 99.815% | |||||||||||
Stated interest rate | 3.95% | |||||||||||
Secured Debt | Sunset Gower Sunset Bronson | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable | $ 5,001,000 | 5,001,000 | ||||||||||
Secured Debt | Sunset Gower Sunset Bronson | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||
Disposal Group, Not Discontinued Operations | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable, held-for-sale | $ 0 | $ 216,000,000 | ||||||||||
Disposal Group, Not Discontinued Operations | Pinnacle I and II | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from disposition of real estate held-for-sale | 350,000,000 | |||||||||||
Notes payable, held-for-sale | $ 216,000,000 | |||||||||||
Unsecured Revolving Credit Facility | Line of Credit | Hudson Pacific Partners, L.P. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 400,000,000 | $ 300,000,000 | ||||||||||
Extension period (in years) | 1 year | |||||||||||
Unsecured Revolving Credit Facility | Subsequent Event | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from lines of credit | $ 100,000,000 | $ 100,000,000 | ||||||||||
Long-term line of credit | $ 200,000,000 |
Notes Payable, net - Summary 53
Notes Payable, net - Summary of Reserved Funds (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||||
Restricted cash | $ 22,358 | $ 25,177 | $ 18,010 | $ 17,083 |
Secured Debt | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 21,599 | 25,003 | ||
Secured Debt | Rincon Center | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 14,220 | 16,291 | ||
Secured Debt | Element LA | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 3,581 | 2,627 | ||
Secured Debt | Hill7 | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 2,392 | 1,643 | ||
Secured Debt | 10950 Washington | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 1,406 | 1,249 | ||
Secured Debt | Pinnacle I | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | 0 | 1,811 | ||
Secured Debt | Pinnacle II | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | $ 0 | $ 1,382 |
Notes Payable, net - Minimum Fu
Notes Payable, net - Minimum Future Payments Due on Notes Payable (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 98,930 |
2,019 | 105,569 |
2,020 | 440,095 |
2,021 | 632 |
2,022 | 500,085 |
Thereafter | 1,294,000 |
Total | $ 2,439,311 |
Notes Payable, net - Interest E
Notes Payable, net - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Gross interest expense | $ 94,660 | $ 82,887 | $ 52,437 |
Capitalized interest | (10,655) | (11,307) | (6,516) |
Amortization of deferred financing costs and loan discount/premium, net | 6,032 | 4,464 | 4,746 |
Interest Expense | 90,037 | $ 76,044 | $ 50,667 |
Interest costs incurred on notes payable, hedging activities and extinguishment costs | $ 1,100 |
Derivatives (Details)
Derivatives (Details) | May 03, 2016USD ($) | Apr. 01, 2015USD ($)derivative | Jul. 31, 2013USD ($) | Dec. 31, 2017USD ($)derivative | Dec. 31, 2016USD ($)derivative | Dec. 31, 2015USD ($) | Jul. 31, 2016USD ($)derivative | Jun. 30, 2016 | Jun. 01, 2016 | May 01, 2015 |
Derivative | ||||||||||
Loss recognized related to ineffective portion of derivative contracts | $ 70,000 | $ 1,400,000 | $ 0 | |||||||
Notes payable | 2,439,311,000 | |||||||||
Derivative assets | 12,586,000 | 5,935,000 | ||||||||
Derivative liabilities | 265,000 | 1,303,000 | ||||||||
Unrealized gain included in accumulated other comprehensive loss | $ 1,500,000 | $ 2,597,000 | ||||||||
Met Park North | ||||||||||
Derivative | ||||||||||
Debt instrument term | 7 years | |||||||||
Fixed interest rate percentage | 371.00% | |||||||||
Notes payable | $ 64,500,000 | |||||||||
Met Park North | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 1.55% | |||||||||
Unsecured Debt | ||||||||||
Derivative | ||||||||||
Notes payable | $ 1,975,000,000 | 2,025,000,000 | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | ||||||||||
Derivative | ||||||||||
Debt instrument term | 5 years | |||||||||
Notes payable | $ 300,000,000 | 450,000,000 | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Minimum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 2.75% | 2.66% | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 1.30% | |||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Maximum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 3.65% | 3.56% | ||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 2.20% | |||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | ||||||||||
Derivative | ||||||||||
Debt instrument term | 7 years | |||||||||
Debt instrument, face amount | $ 350,000,000 | |||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | Minimum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 3.36% | 3.21% | ||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | Maximum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 4.31% | 4.16% | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | ||||||||||
Derivative | ||||||||||
Debt instrument term | 7 years | |||||||||
Notes payable | $ 125,000,000 | $ 125,000,000 | ||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Minimum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 3.03% | |||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 1.60% | |||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Maximum | ||||||||||
Derivative | ||||||||||
Fixed interest rate percentage | 3.98% | |||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 2.55% | |||||||||
Designated as Hedging Instrument | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Derivative, floor interest rate | 0.00% | |||||||||
Interest Rate Caps | Designated as Hedging Instrument | ||||||||||
Derivative | ||||||||||
Number of derivative instruments held | derivative | 6 | 6 | ||||||||
Notional amount | $ 839,500,000 | $ 83,900,000 | ||||||||
Interest Rate Swaps | 7 Year Term Loan Facility 2015 | ||||||||||
Derivative | ||||||||||
Fixed interest rate | 1.61% | |||||||||
Interest Rate Swaps | Unsecured Debt | 7 Year Term Loan Facility 2015 | ||||||||||
Derivative | ||||||||||
Number of derivative instruments held | derivative | 2 | |||||||||
Interest Rate Contract | ||||||||||
Derivative | ||||||||||
Number of derivative instruments held | derivative | 2 | |||||||||
Derivative asset notional amount | $ 300,000,000 | $ 300,000,000 | ||||||||
Interest Rate Contract | 5-Year Term Loan due April 2020 | ||||||||||
Derivative | ||||||||||
Number of derivative instruments held | derivative | 2 | |||||||||
Interest Rate Contract | 7-Year Term Loan due November 2022 | ||||||||||
Derivative | ||||||||||
Derivative asset notional amount | $ 125,000,000 | |||||||||
Fixed interest rate | 1.43% | |||||||||
Interest Rate Contract | Met Park North | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Interest rate cap | 2.16% | |||||||||
Interest Rate Contract | Not Designated as Hedging Instrument | 5-Year Term Loan due April 2020 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 1.30% | |||||||||
Interest Rate Contract | Not Designated as Hedging Instrument | 5-Year Term Loan due April 2020 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Basis spread on variable rate | 2.20% | |||||||||
Interest Rate Contract, Instrument A | 5-Year Term Loan due April 2020 | ||||||||||
Derivative | ||||||||||
Notional amount | $ 150,000,000 | |||||||||
Fixed interest rate | 1.36% | |||||||||
Interest Rate Contract, Instrument B | 5-Year Term Loan due April 2020 | ||||||||||
Derivative | ||||||||||
Notional amount | $ 150,000,000 | |||||||||
Fixed interest rate | 1.36% | |||||||||
Interest Rate Floor | 7-Year Term Loan due November 2022 | London Interbank Offered Rate (LIBOR) | ||||||||||
Derivative | ||||||||||
Derivative, floor interest rate | 0.00% |
Future Minimum Base Rents and57
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Future Minimum Base Rents (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 480,779 |
2,019 | 456,807 |
2,020 | 396,593 |
2,021 | 348,360 |
2,022 | 292,434 |
Thereafter | 929,832 |
Total | 2,904,805 |
Non-Cancelable Leases | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | 476,777 |
2,019 | 445,032 |
2,020 | 376,361 |
2,021 | 315,588 |
2,022 | 246,997 |
Thereafter | 805,449 |
Total | 2,666,204 |
Subject to Early Termination Options | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | 4,002 |
2,019 | 11,775 |
2,020 | 20,232 |
2,021 | 32,772 |
2,022 | 45,437 |
Thereafter | 124,383 |
Total | $ 238,601 |
Future Minimum Base Rents and58
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Ground lease Terms Related to Properties That Are Held Subject to Long-term Noncancellable Ground Lease Obligations (Details) - Ground Lease | 12 Months Ended |
Dec. 31, 2017USD ($) | |
3400 Hillview | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, cumulative increases in consumer price index | $ 1,000,000 |
Minimum annual rent calculation, percent of consumer price index over the next 5 years | 75.00% |
Minimum annual rent calculation, percent of consumer price index, thereafter | 75.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
9300 Wilshire | |
Operating Leased Assets | |
Minimum annual rent calculation, percent | 6.00% |
Clocktower Square | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum annual rent calculation, frequency of rent adjustments | 10 years |
Del Amo Office | |
Operating Leased Assets | |
Minimum annual rent calculation, annual rent | $ 1 |
Foothill Research Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
3176 Porter (formerly Lockheed) | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
Metro Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 7.233% |
Minimum annual rent calculation, frequency of rent adjustments | 10 years |
Page Mill Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Page Mill Hill | |
Operating Leased Assets | |
Minimum annual rent calculation, frequency of rent adjustments | 10 years |
Minimum annual rent calculation, percent of annual rent, previous 7 years | 60.00% |
Palo Alto Square | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum annual rent calculation, frequency of rent adjustments | 10 years |
Sunset Gower Studios | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 7.50% |
Minimum annual rent calculation, frequency of rent adjustments | 7 years |
Techmart Commerce Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent | 10.00% |
Minimum annual rent calculation, frequency of rent adjustments | 5 years |
Future Minimum Base Rents and59
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Contingent rental expense | $ 8,775 | $ 8,651 | $ 3,843 |
Minimum rental expense | $ 12,412 | $ 12,085 | $ 9,196 |
Future Minimum Base Rents and60
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Future Minimum Payments Due (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 14,111 |
2,019 | 14,161 |
2,020 | 14,161 |
2,021 | 14,161 |
2,022 | 14,161 |
Thereafter | 382,070 |
Total | $ 452,825 |
Fair Value of Financial Instr61
Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2017 | Oct. 02, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | $ 12,586,000 | $ 5,935,000 | |
Derivative liabilities | 265,000 | 1,303,000 | |
Unsecured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 1,960,560,000 | 2,011,210,000 | |
Unsecured Debt | Registered Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt instrument, face amount | $ 400,000,000 | ||
Discount net of amortization | 722,000 | ||
Unsecured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 1,974,278,000 | 2,025,000,000 | |
Secured Debt | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 458,441,000 | 669,924,000 | |
Secured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 464,311,000 | 682,839,000 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 12,586,000 | 5,935,000 | |
Derivative liabilities | 265,000 | 1,303,000 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017USD ($) | Dec. 31, 2015 | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock price assumption for maximum bonus pool eligibility (in dollars per share) | $ / shares | $ 34.25 | ||||
Performance period (in years) | 3 years | ||||
Vesting percentage after performance period | 50.00% | ||||
Amortization of stock-based compensation | $ 15,915,000 | $ 14,654,000 | $ 8,832,000 | ||
Unrecognized compensation cost related to unvested share-based payments | $ 31,200,000 | ||||
Unrecognized compensation cost, amortization period (in years) | 2 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 2 years | ||||
2010 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Ratio of reduction in share reserve | 5.14 | ||||
Number of shares authorized for issuance | shares | 3,961,867 | ||||
Existing and Newly Elected Board Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Employees | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting period (in years) | 4 years | ||||
One-Time Retention Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Retention awards, vesting percentage | 25.00% | 25.00% | |||
OPP 2,017 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Mandatory holding period upon vesting | 2 years | ||||
Outperformance Program | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum bonus pool | $ 20,000,000 | $ 20,000,000 | 17,500,000 | ||
Outperformance Program | Expensed stock compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 15,079,000 | 14,144,000 | 8,421,000 | ||
Outperformance Program | Capitalized stock compensation | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 836,000 | $ 510,000 | $ 411,000 |
Stock-Based Compensation - Outp
Stock-Based Compensation - Outperformance Plan (Details) - USD ($) | Dec. 31, 2017 | Feb. 28, 2017 | Dec. 31, 2016 |
Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum bonus pool | $ 20,000,000 | $ 20,000,000 | $ 17,500,000 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.47% | 1.09% | 1.13% |
Total dividend payments over the measurement period per share | 2.30% | 2.40% | 1.50% |
Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 1.63% | ||
Total dividend payments over the measurement period per share | 3.20% | ||
The Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 24.00% | 24.00% | 22.00% |
The Company | Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 23.00% | ||
REIT Index | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 17.00% | 17.00% | 22.00% |
REIT Index | Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility rate | 18.00% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Award Information (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 887,179 | 827,950 | 543,707 |
Granted (in shares) | 918,884 | 489,826 | 629,504 |
Vested (in shares) | (705,508) | (430,597) | (335,544) |
Canceled (in shares) | (13,369) | 0 | (9,717) |
Ending balance (in shares) | 1,087,186 | 887,179 | 827,950 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning balance (in dollars per share) | $ 31.09 | $ 28.92 | $ 26.43 |
Granted (in dollars per share) | 34.37 | 30.95 | 29.01 |
Vested (in dollars per share) | 31.42 | 26.75 | 24.80 |
Canceled (in dollars per share) | 32.14 | 0 | 38.17 |
Ending balance (in dollars per share) | $ 33.64 | $ 31.09 | $ 28.92 |
Total Vest-Date Fair Value | $ 24,155 | $ 14,736 | $ 9,606 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | |||
Basic net income (loss) attributable to common stockholders | $ 67,587 | $ 27,218 | $ (16,397) |
Effect of dilutive instruments | 0 | 451 | 0 |
Diluted net income (loss) available to common stockholders/unitholders | $ 67,587 | $ 27,669 | $ (16,397) |
Denominator: | |||
Basic weighted average shares of common shares/units outstanding (in shares) | 153,488,730 | 106,188,902 | 85,927,216 |
Effect of dilutive instruments (in shares) | 394,084 | 4,180,153 | 0 |
Diluted weighted average common shares/units outstanding (in shares) | 153,882,814 | 110,369,055 | 85,927,216 |
Basic earnings per common share/unit (in dollars per share) | $ 0.44 | $ 0.26 | $ (0.19) |
Diluted earnings per common share/unit (in dollars per share) | $ 0.44 | $ 0.25 | $ (0.19) |
Hudson Pacific Partners, L.P. | |||
Numerator: | |||
Basic net income (loss) attributable to common stockholders | $ 67,962 | $ 33,066 | $ (38,366) |
Effect of dilutive instruments | 0 | 451 | 0 |
Diluted net income (loss) available to common stockholders/unitholders | $ 67,962 | $ 33,517 | $ (38,366) |
Denominator: | |||
Basic weighted average shares of common shares/units outstanding (in shares) | 154,276,773 | 145,595,246 | 128,948,077 |
Effect of dilutive instruments (in shares) | 394,084 | 1,144,000 | 0 |
Diluted weighted average common shares/units outstanding (in shares) | 154,670,857 | 146,739,246 | 128,948,077 |
Basic earnings per common share/unit (in dollars per share) | $ 0.44 | $ 0.23 | $ (0.30) |
Diluted earnings per common share/unit (in dollars per share) | $ 0.44 | $ 0.23 | $ (0.30) |
Equity - Comprehensive Income (
Equity - Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,702,750 | $ 3,729,037 | $ 1,275,015 |
Reclassification related to redemption of common units in the operating partnership | (310,855) | (1,446,039) | |
Ending balance | 3,910,964 | 3,702,750 | 3,729,037 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 5,878 | (64) | (2,661) |
Unrealized loss recognized in OCI due to change in fair value | 3,029 | (2,867) | (7,663) |
Loss Reclassified from OCI into Income (as Interest Expense) | 4,369 | 8,809 | 10,260 |
Net change in OCI | 7,398 | 5,942 | 2,597 |
Reclassification related to redemption of common units in the operating partnership | 0 | ||
Ending balance | 13,276 | 5,878 | (64) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | 9,496 | (1,081) | (2,443) |
Unrealized loss recognized in OCI due to change in fair value | 3,011 | 4,122 | (4,976) |
Loss Reclassified from OCI into Income (as Interest Expense) | 4,342 | 6,455 | 6,338 |
Net change in OCI | 7,353 | 10,577 | 1,362 |
Reclassification related to redemption of common units in the operating partnership | (3,622) | ||
Ending balance | 13,227 | 9,496 | (1,081) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Noncontrolling Interest | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (3,618) | 1,017 | (218) |
Unrealized loss recognized in OCI due to change in fair value | 18 | (6,989) | (2,687) |
Loss Reclassified from OCI into Income (as Interest Expense) | 27 | 2,354 | 3,922 |
Net change in OCI | 45 | (4,635) | 1,235 |
Reclassification related to redemption of common units in the operating partnership | 3,622 | ||
Ending balance | $ 49 | $ (3,618) | $ 1,017 |
Equity - Narrative (Details)
Equity - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Jan. 31, 2017shares | Nov. 30, 2016shares | Jul. 31, 2016shares | May 31, 2016shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016shares | Jan. 20, 2016USD ($) | Dec. 31, 2015shares | |
Class of Stock [Line Items] | ||||||||||||
Company-owned common units in the operating partnership | 155,602,508 | 136,492,235 | ||||||||||
Company’s ownership interest percentage | 99.60% | 93.50% | 61.30% | |||||||||
Non-controlling ownership interest percentage | 0.40% | 6.50% | 38.70% | |||||||||
Common Stock, Increase (Decrease) During Period [Roll Forward] | ||||||||||||
Original issuance costs of redeemed Series B preferred stock | $ | $ 0 | $ 0 | $ (5,970,000) | |||||||||
Stock repurchase program authorized | $ | $ 100,000,000 | |||||||||||
Common stock, dividends declared (in dollars per share) | $ / shares | $ 1 | |||||||||||
Restricted Performance-based Share Awards | ||||||||||||
Common Stock, Increase (Decrease) During Period [Roll Forward] | ||||||||||||
Common stock, conversion ratio | 1 | |||||||||||
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||||||||||||
Common Stock, Increase (Decrease) During Period [Roll Forward] | ||||||||||||
Interest rate of preferred stock | 6.25% | |||||||||||
Preferred stock, shares outstanding | 407,066 | |||||||||||
Liquidation preference of preferred stock (in dollars per share) | $ / shares | $ 25 | |||||||||||
Preferred stock, dividends declared (in dollars per share) | $ / shares | $ 1.5625 | |||||||||||
Series B Preferred Stock | ||||||||||||
Common Stock, Increase (Decrease) During Period [Roll Forward] | ||||||||||||
Interest rate of preferred stock | 8.375% | |||||||||||
Preferred stock, shares outstanding | 5,800,000 | |||||||||||
Liquidation preference of preferred stock (in dollars per share) | $ / shares | $ 25 | |||||||||||
Par value of preferred stock (in dollars per share) | $ / shares | $ 0.01 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Non-controlling common units in the operating partnership | 9,450,620 | 9,450,620 | 56,296,315 | 56,296,315 | 569,045 | 9,450,620 | 56,296,315 | |||||
Common Stock, Increase (Decrease) During Period [Roll Forward] | ||||||||||||
Noncontrolling Interest, Beginning balance | 9,450,620 | 9,450,620 | 56,296,315 | |||||||||
Partners' capital redeemed shares | (8,881,575) | (17,533,099) | (19,195,373) | (10,117,223) | ||||||||
Noncontrolling common units in the operating partnership | 569,045 | 9,450,620 | 56,296,315 | |||||||||
Partnership Interest | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Company-owned common units in the operating partnership | 155,602,508 | 136,492,235 | 89,153,780 |
Equity - Net Income Attributabl
Equity - Net Income Attributable to Common Stockholders (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Equity [Line Items] | |||
Net income (loss) allocation for common stock/units on the Consolidated Statements of Equity/Capital | $ 68,590 | $ 27,984 | $ (10,071) |
Net income attributable to participating securities | (1,003) | (766) | (356) |
Series B transaction costs allocation | 0 | 0 | (5,970) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 67,587 | 27,218 | (16,397) |
Hudson Pacific Partners, L.P. | |||
Reconciliation of Equity [Line Items] | |||
Net income (loss) allocation for common stock/units on the Consolidated Statements of Equity/Capital | 68,965 | 33,832 | (32,040) |
Net income attributable to participating securities | (1,003) | (766) | (356) |
Series B transaction costs allocation | 0 | 0 | (5,970) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 67,962 | $ 33,066 | $ (38,366) |
Equity - Common Stock Activity
Equity - Common Stock Activity (Details) - USD ($) | Mar. 03, 2017 | Jan. 10, 2017 | Nov. 28, 2016 | Jul. 21, 2016 | May 16, 2016 | Apr. 01, 2015 | Jan. 20, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 18,673,808 | |||||||||
Proceeds from issuance of common stock, net | $ 647,382,000 | $ 1,449,581,000 | $ 380,620,000 | |||||||
Repayments of unsecured debt | $ 255,000,000 | |||||||||
ATM Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 0 | 165,000 | 0 | |||||||
Proceeds from issuance of common stock, net | $ 20,100,000 | |||||||||
Number of share authorized, value | $ 125,000,000 | |||||||||
Minimum | ATM Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Public offering price per share (in dollars per share) | $ 33.54 | |||||||||
Maximum | ATM Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Public offering price per share (in dollars per share) | $ 33.95 | |||||||||
Hudson Pacific Properties, Inc. | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 8,881,575 | |||||||||
Proceeds from issuance of common stock, net | $ 310,900,000 | |||||||||
Common Stock | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 9,775,000 | 17,533,099 | 19,195,373 | 10,117,223 | 8,626,311 | 12,650,000 | 18,656,575 | 47,010,695 | 12,650,000 | |
Public offering price per share (in dollars per share) | $ 31.75 | |||||||||
Proceeds from issuance of common stock, net | $ 385,600,000 | |||||||||
Common Stock | Public Offering | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 11,000,000 | |||||||||
Common Stock | Underwriter option | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 1,650,000 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | Dec. 18, 2017 | Sep. 19, 2017 | Jun. 20, 2017 | Mar. 30, 2017 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 1 |
Common stock, dividends | 100.00% | ||||
Common stock, percentage classified as ordinary dividends | 58.532% | ||||
Common stock, percentage classified as capital gain distribution | 16.09% | ||||
Common stock, percentage classified as return of capital | 25.38% | ||||
Common stock, capital gain distribution, unrecaptured 1250 gain | $ 0.0300 | ||||
Oridnary Dividends | |||||
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | 0.14633 | 0.14633 | 0.14633 | 0.14633 | 0.58532 |
Non-Qualified Ordinary Dividends | |||||
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | 0.14633 | 0.14633 | 0.14633 | 0.14633 | 0.58532 |
Qualified Ordinary Dividends | |||||
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 |
Capital Gain Distributions | |||||
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | 0.04023 | 0.04023 | 0.04023 | 0.04023 | 0.16092 |
Return of Capital Dividend | |||||
Class of Stock [Line Items] | |||||
Common stock, distributions per share (in dollars per share) | $ 0.06345 | $ 0.06345 | $ 0.06345 | $ 0.06345 | $ 0.2538 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | Jan. 10, 2017USD ($)shares | Jul. 01, 2016USD ($) | Dec. 16, 2015ft² | Apr. 01, 2015USD ($)ft²projectpropertydirectorshares | Jan. 31, 2017shares | Nov. 30, 2016shares | Jul. 31, 2016shares | May 31, 2016shares | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 16, 2017USD ($) | Sep. 01, 2015ft² |
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from disposition of real estate held-for-sale | $ 254,800 | ||||||||||||
Net rentable area (in square feet) | ft² | 14,541,458 | ||||||||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 18,673,808 | ||||||||||||
Proceeds from issuance of common stock, net | $ 647,382 | $ 1,449,581 | $ 380,620 | ||||||||||
Common Stock | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Partners' capital redeemed shares | shares | 8,881,575 | 17,533,099 | 19,195,373 | 10,117,223 | |||||||||
Blackstone Real Estate Partners | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of director nominees to the board | director | 3 | ||||||||||||
Hudson Pacific Properties, Inc. | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 8,881,575 | ||||||||||||
Proceeds from issuance of common stock, net | $ 310,900 | ||||||||||||
Blackstone And Farallon Funds | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 9,792,233 | ||||||||||||
Proceeds from issuance of common stock, net | $ 342,700 | ||||||||||||
EOP Northern California Portfolio | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Net rentable area (in square feet) | ft² | 8,200,000 | ||||||||||||
Payments to acquire businesses | $ 1,750,000 | ||||||||||||
Shares issued as consideration for business combination | shares | 63,474,791 | ||||||||||||
EOP Northern California Portfolio | Office Building | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of real estate properties acquired | property | 26 | ||||||||||||
EOP Northern California Portfolio | Development Parcel | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of real estate development projects acquired | project | 2 | ||||||||||||
Disposal Group, Not Discontinued Operations | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Notes payable, held-for-sale | $ 0 | $ 216,000 | |||||||||||
Pinnacle I and II | Disposal Group, Not Discontinued Operations | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from disposition of real estate held-for-sale | $ 350,000 | ||||||||||||
Notes payable, held-for-sale | $ 216,000 | ||||||||||||
11601 Wilshire | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Area of leased real estate (in square feet) | ft² | 6,638 | ||||||||||||
Total term of lease | 8 years | ||||||||||||
Purchase price of properties acquired, business acquisitions | $ 311,000 | ||||||||||||
Annualized rent payment | $ 279 | ||||||||||||
Blackstone Real Estate Partners | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Area of leased real estate (in square feet) | ft² | 42,371 | 40,120 | |||||||||||
Operating lease, renewal term | 3 years | ||||||||||||
Total term of lease | 10 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Revolving Credit Facility | Unsecured Debt | |
Loss Contingencies | |
Letters of credit outstanding | $ 2.5 |
Geographic Concentration Risk | California | |
Loss Contingencies | |
Contribution risk, percentage | 90.00% |
Customer Concentration Risk | Rentable Square Feet | |
Loss Contingencies | |
Contribution risk, percentage | 29.00% |
Customer Concentration Risk | Rentable Square Feet | Media And Entertainment Sector | |
Loss Contingencies | |
Contribution risk, percentage | 16.00% |
Customer Concentration Risk | Rentable Square Feet | Technology Sector | |
Loss Contingencies | |
Contribution risk, percentage | 34.00% |
Quarterly Financial Informati74
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 189,333 | $ 190,021 | $ 180,500 | $ 168,285 | $ 167,198 | $ 164,583 | $ 154,321 | $ 153,537 | $ 728,139 | $ 639,639 | $ 520,850 |
Income from operations | 43,832 | 36,160 | 28,108 | 28,503 | 26,845 | 23,740 | 19,811 | 19,011 | 136,603 | 89,407 | 47,388 |
Net income | 48,944 | 14,510 | 6,954 | 24,153 | 28,530 | 5,217 | 4,035 | 5,976 | $ 94,561 | $ 43,758 | $ (16,082) |
Net income attributable to the Company’s stockholders | $ 32,455 | $ 11,064 | $ 3,553 | $ 20,515 | $ 22,279 | $ 1,847 | $ 839 | $ 2,253 | |||
Net income attributable to common stockholders’ per share— basic (in dollars per share) | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.18 | $ 0.02 | $ 0.01 | $ 0.03 | |||
Net income attributable to common stockholders’ per share — diluted (in dollars per share) | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.18 | $ 0.02 | $ 0.01 | $ 0.03 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Feb. 12, 2018 | Jan. 30, 2018 | Jan. 23, 2018 | Dec. 31, 2017 | Jan. 31, 2018 | Jan. 25, 2018 |
Subsequent Event [Line Items] | ||||||
Proceeds from disposition of real estate held-for-sale | $ 254.8 | |||||
Performance period (in years) | 3 years | |||||
Embarcadero Place | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from disposition of real estate held-for-sale | $ 136 | |||||
2600 Campus Drive | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from disposition of real estate held-for-sale | $ 22.5 | |||||
Subsequent Event | Outperformance Program 2018 | ||||||
Subsequent Event [Line Items] | ||||||
Maximum bonus pool | $ 25 | |||||
TSR, absolute hurdle rate | 7.00% | |||||
TSR, absolute hurdle rate, percent of performance in excess of hurdle rate | 3.00% | |||||
TSR, percent in excess of SNL US office REIT index | 3.00% | |||||
TSR, Percent of underperformance under SNL US office REIT index | 3.00% | |||||
TSR, Percent of underperformance under SNL US office REIT index, threshold | 3.00% | |||||
Target bonus pool | $ 4.8 | |||||
TSR, Maximum bonus pool, percent of simple annual TSR | 8.00% | |||||
Performance period (in years) | 3 years | |||||
Mandatory holding period upon vesting | 2 years | |||||
Subsequent Event | Outperformance Program 2018 | Maximum | ||||||
Subsequent Event [Line Items] | ||||||
TSR, linear reduction in absolute TSR performance | 100.00% | |||||
TSR, linear reduction in simple annual TSR performance | 7.00% | |||||
Subsequent Event | Outperformance Program 2018 | Minimum | ||||||
Subsequent Event [Line Items] | ||||||
TSR, linear reduction in absolute TSR performance | 25.00% | |||||
TSR, linear reduction in simple annual TSR performance | 0.00% | |||||
Subsequent Event | Outperformance Program 2018 | Victor J. Coleman | ||||||
Subsequent Event [Line Items] | ||||||
TSR, award percentage | 24.00% | |||||
Subsequent Event | Outperformance Program 2018 | Mark T. Lammas | ||||||
Subsequent Event [Line Items] | ||||||
TSR, award percentage | 13.75% | |||||
Subsequent Event | Outperformance Program 2018 | Christopher Barton | ||||||
Subsequent Event [Line Items] | ||||||
TSR, award percentage | 6.40% | |||||
Subsequent Event | Outperformance Program 2018 | Alex Vouvalides | ||||||
Subsequent Event [Line Items] | ||||||
TSR, award percentage | 9.15% | |||||
Subsequent Event | Outperformance Program 2018 | Josh Hatfield | ||||||
Subsequent Event [Line Items] | ||||||
TSR, award percentage | 6.40% | |||||
Subsequent Event | Embarcadero Place | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from disposition of real estate held-for-sale | $ 136 | |||||
Subsequent Event | 2600 Campus Drive | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from disposition of real estate held-for-sale | $ 22.5 | |||||
Subsequent Event | Unsecured Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Proceeds from lines of credit | $ 100 | $ 100 |
Schedule III - Real Estate an76
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | $ 464,311 | |||
Amount of encumbrances, net of real estate held-for-sale | 464,311 | |||
Initial Costs | ||||
Land | 1,302,907 | |||
Land, net of real estate held-for-sale | 1,369,320 | |||
Building & Improvements | 4,181,861 | |||
Buildings & Improvements, net of real estate held-for-sale | 4,330,544 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 899,181 | |||
Improvements, net of real estate held-for-sale | 904,893 | |||
Carrying Costs | 39,492 | |||
Carrying costs, net of real estate held-for-sale | 39,492 | |||
Gross Carrying Amount | ||||
Land | 1,302,907 | |||
Land, net of real estate held-for-sale | 1,369,320 | |||
Building & Improvements | 5,120,534 | |||
Buildings & All Improvements, net of real estate held-for-sale | 5,274,929 | |||
Total | 6,423,441 | |||
Real estate, net of real estate held-for-sale | 6,644,249 | $ 6,507,484 | $ 5,976,526 | $ 2,239,741 |
Accumulated depreciation | (533,498) | (375,207) | (263,859) | |
Accumulated depreciation, net of real estate held-for-sale | (549,411) | $ (423,950) | $ (272,724) | $ (142,561) |
Real estate, federal income tax basis | $ 6,200,000 | |||
Building Improvements | ||||
Gross Carrying Amount | ||||
Estimated useful life | 39 years | |||
Land improvements | ||||
Gross Carrying Amount | ||||
Estimated useful life | 15 years | |||
9300 Wilshire | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | $ 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 10,718 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,024 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 12,742 | |||
Total | 12,742 | |||
Accumulated depreciation | (4,195) | |||
Embarcadero Place | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 41,050 | |||
Building & Improvements | 77,006 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,273 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 41,050 | |||
Building & Improvements | 80,279 | |||
Total | 121,329 | |||
Accumulated depreciation | (7,155) | |||
2180 Sand Hill Road | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 13,663 | |||
Building & Improvements | 50,559 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 385 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 13,663 | |||
Building & Improvements | 50,944 | |||
Total | 64,607 | |||
Accumulated depreciation | (3,749) | |||
2600 Campus Drive (building 6 of Peninsula Office Park), San Francisco Bay Area, CA | Disposal Group, Held-for-sale, Not Discontinued Operations | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 11,700 | |||
Building & Improvements | 10,400 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 30 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 11,700 | |||
Building & Improvements | 10,430 | |||
Total | 22,130 | |||
Accumulated depreciation | (814) | |||
Office Building | 875 Howard Street Property | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 18,058 | |||
Building & Improvements | 41,046 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 17,544 | |||
Carrying Costs | 1,936 | |||
Gross Carrying Amount | ||||
Land | 18,058 | |||
Building & Improvements | 60,526 | |||
Total | 78,584 | |||
Accumulated depreciation | (13,944) | |||
Office Building | 6040 Sunset (formerly Technicolor Building) | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 6,599 | |||
Building & Improvements | 27,187 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 25,032 | |||
Carrying Costs | 3,088 | |||
Gross Carrying Amount | ||||
Land | 6,599 | |||
Building & Improvements | 55,307 | |||
Total | 61,906 | |||
Accumulated depreciation | (19,426) | |||
Office Building | ICON, Los Angeles | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 146,009 | |||
Carrying Costs | 5,497 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 151,506 | |||
Total | 151,506 | |||
Accumulated depreciation | (5,494) | |||
Office Building | CUE, Los Angeles | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 35,837 | |||
Carrying Costs | 1,326 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 37,163 | |||
Total | 37,163 | |||
Accumulated depreciation | 0 | |||
Office Building | EPIC, Los Angeles | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 23,783 | |||
Carrying Costs | 852 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 24,635 | |||
Total | 24,635 | |||
Accumulated depreciation | 0 | |||
Office Building | Del Amo Office | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 18,000 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,458 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 20,458 | |||
Total | 20,458 | |||
Accumulated depreciation | (4,767) | |||
Office Building | 1455 Market | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 41,226 | |||
Building & Improvements | 34,990 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 55,661 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 41,226 | |||
Building & Improvements | 90,651 | |||
Total | 131,877 | |||
Accumulated depreciation | (12,725) | |||
Office Building | Rincon Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 98,392 | |||
Initial Costs | ||||
Land | 58,251 | |||
Building & Improvements | 110,656 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 22,396 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 58,251 | |||
Building & Improvements | 133,052 | |||
Total | 191,303 | |||
Accumulated depreciation | (24,373) | |||
Office Building | 10950 Washington | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 27,418 | |||
Initial Costs | ||||
Land | 17,979 | |||
Building & Improvements | 25,110 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 745 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 17,979 | |||
Building & Improvements | 25,855 | |||
Total | 43,834 | |||
Accumulated depreciation | (4,978) | |||
Office Building | 604 Arizona | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 5,620 | |||
Building & Improvements | 14,745 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,332 | |||
Carrying Costs | 423 | |||
Gross Carrying Amount | ||||
Land | 5,620 | |||
Building & Improvements | 16,500 | |||
Total | 22,120 | |||
Accumulated depreciation | (2,566) | |||
Office Building | 275 Brannan Street | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 4,187 | |||
Building & Improvements | 8,063 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 14,029 | |||
Carrying Costs | 1,115 | |||
Gross Carrying Amount | ||||
Land | 4,187 | |||
Building & Improvements | 23,207 | |||
Total | 27,394 | |||
Accumulated depreciation | (6,253) | |||
Office Building | 625 Second Street | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 10,744 | |||
Building & Improvements | 42,650 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,319 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 10,744 | |||
Building & Improvements | 45,969 | |||
Total | 56,713 | |||
Accumulated depreciation | (8,564) | |||
Office Building | 6922 Hollywood | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 16,608 | |||
Building & Improvements | 72,392 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 8,302 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 16,608 | |||
Building & Improvements | 80,694 | |||
Total | 97,302 | |||
Accumulated depreciation | (15,166) | |||
Office Building | 10900 Washington | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 1,400 | |||
Building & Improvements | 1,200 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 738 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 1,400 | |||
Building & Improvements | 1,938 | |||
Total | 3,338 | |||
Accumulated depreciation | (661) | |||
Office Building | 901 Market Street | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 17,882 | |||
Building & Improvements | 79,305 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 13,606 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 17,882 | |||
Building & Improvements | 92,911 | |||
Total | 110,793 | |||
Accumulated depreciation | (15,115) | |||
Office Building | Element LA | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 168,000 | |||
Initial Costs | ||||
Land | 79,769 | |||
Building & Improvements | 19,755 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 85,349 | |||
Carrying Costs | 10,391 | |||
Gross Carrying Amount | ||||
Land | 79,769 | |||
Building & Improvements | 115,495 | |||
Total | 195,264 | |||
Accumulated depreciation | (10,203) | |||
Office Building | 3401 Exposition | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 14,120 | |||
Building & Improvements | 11,319 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 11,046 | |||
Carrying Costs | 1,028 | |||
Gross Carrying Amount | ||||
Land | 14,120 | |||
Building & Improvements | 23,393 | |||
Total | 37,513 | |||
Accumulated depreciation | (2,844) | |||
Office Building | 505 First | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 22,917 | |||
Building & Improvements | 133,034 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,905 | |||
Gross Carrying Amount | ||||
Land | 22,917 | |||
Building & Improvements | 136,939 | |||
Total | 159,856 | |||
Accumulated depreciation | (17,885) | |||
Office Building | 83 King | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 12,982 | |||
Building & Improvements | 51,403 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 5,300 | |||
Gross Carrying Amount | ||||
Land | 12,982 | |||
Building & Improvements | 56,703 | |||
Total | 69,685 | |||
Accumulated depreciation | (8,345) | |||
Office Building | Met Park North | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 64,500 | |||
Initial Costs | ||||
Land | 28,996 | |||
Building & Improvements | 71,768 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 608 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 28,996 | |||
Building & Improvements | 72,376 | |||
Total | 101,372 | |||
Accumulated depreciation | (10,016) | |||
Office Building | Northview Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 4,803 | |||
Building & Improvements | 41,191 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 918 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 4,803 | |||
Building & Improvements | 42,109 | |||
Total | 46,912 | |||
Accumulated depreciation | (6,020) | |||
Office Building | Merrill Place | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 27,684 | |||
Building & Improvements | 29,824 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 16,287 | |||
Carrying Costs | 784 | |||
Gross Carrying Amount | ||||
Land | 27,684 | |||
Building & Improvements | 46,895 | |||
Total | 74,579 | |||
Accumulated depreciation | (5,251) | |||
Office Building | 450 Alaskan | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 0 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 73,226 | |||
Carrying Costs | 2,542 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 75,768 | |||
Total | 75,768 | |||
Accumulated depreciation | (201) | |||
Office Building | Palo Alto Square | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 326,033 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 17,448 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 343,481 | |||
Total | 343,481 | |||
Accumulated depreciation | (31,719) | |||
Office Building | 3400 Hillview | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 159,641 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,453 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 162,094 | |||
Total | 162,094 | |||
Accumulated depreciation | (20,037) | |||
Office Building | Foothill Research Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 133,994 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,011 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 137,005 | |||
Total | 137,005 | |||
Accumulated depreciation | (19,269) | |||
Office Building | Page Mill Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 147,625 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 6,748 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 154,373 | |||
Total | 154,373 | |||
Accumulated depreciation | (19,348) | |||
Office Building | Clocktower Square | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 93,949 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 539 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 94,488 | |||
Total | 94,488 | |||
Accumulated depreciation | (7,875) | |||
Office Building | Lockheed | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 34,561 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (292) | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 34,269 | |||
Total | 34,269 | |||
Accumulated depreciation | (3,732) | |||
Office Building | Towers at Shore Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 72,673 | |||
Building & Improvements | 144,188 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 7,924 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 72,673 | |||
Building & Improvements | 152,112 | |||
Total | 224,785 | |||
Accumulated depreciation | (13,102) | |||
Office Building | Skyway Landing | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 37,959 | |||
Building & Improvements | 63,559 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 2,812 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 37,959 | |||
Building & Improvements | 66,371 | |||
Total | 104,330 | |||
Accumulated depreciation | (6,923) | |||
Office Building | Shorebreeze | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 69,448 | |||
Building & Improvements | 59,806 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 7,556 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 69,448 | |||
Building & Improvements | 67,362 | |||
Total | 136,810 | |||
Accumulated depreciation | (5,805) | |||
Office Building | 555 Twin Dolphin | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 40,614 | |||
Building & Improvements | 73,457 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 5,409 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 40,614 | |||
Building & Improvements | 78,866 | |||
Total | 119,480 | |||
Accumulated depreciation | (7,074) | |||
Office Building | 333 Twin Dolphin | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 36,441 | |||
Building & Improvements | 64,892 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 8,275 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 36,441 | |||
Building & Improvements | 73,167 | |||
Total | 109,608 | |||
Accumulated depreciation | (7,136) | |||
Office Building | Peninsula Office Park | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 98,206 | |||
Building & Improvements | 93,780 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 12,094 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 98,206 | |||
Building & Improvements | 105,874 | |||
Total | 204,080 | |||
Accumulated depreciation | (12,121) | |||
Office Building | Metro Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 313,683 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 39,566 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 353,249 | |||
Total | 353,249 | |||
Accumulated depreciation | (31,341) | |||
Office Building | Concourse | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 45,085 | |||
Building & Improvements | 224,271 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 9,585 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 45,085 | |||
Building & Improvements | 233,856 | |||
Total | 278,941 | |||
Accumulated depreciation | (23,035) | |||
Office Building | Gateway | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 33,117 | |||
Building & Improvements | 121,217 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 26,159 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 33,117 | |||
Building & Improvements | 147,376 | |||
Total | 180,493 | |||
Accumulated depreciation | (14,718) | |||
Office Building | Metro Plaza | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 16,038 | |||
Building & Improvements | 106,156 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 9,929 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 16,038 | |||
Building & Improvements | 116,085 | |||
Total | 132,123 | |||
Accumulated depreciation | (10,924) | |||
Office Building | 1740 Technology | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 8,052 | |||
Building & Improvements | 49,486 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 3,555 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 8,052 | |||
Building & Improvements | 53,041 | |||
Total | 61,093 | |||
Accumulated depreciation | (7,032) | |||
Office Building | Skyport Plaza | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 29,033 | |||
Building & Improvements | 153,844 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | (6,501) | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 29,033 | |||
Building & Improvements | 147,343 | |||
Total | 176,376 | |||
Accumulated depreciation | (10,401) | |||
Office Building | Techmart Commerce Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 66,660 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 10,598 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 77,258 | |||
Total | 77,258 | |||
Accumulated depreciation | (8,244) | |||
Office Building | Campus Center | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 59,460 | |||
Building & Improvements | 79,604 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 7,834 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 59,460 | |||
Building & Improvements | 87,438 | |||
Total | 146,898 | |||
Accumulated depreciation | (15,374) | |||
Office Building | 4th and Traction | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 12,140 | |||
Building & Improvements | 37,110 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 38,529 | |||
Carrying Costs | 6,139 | |||
Gross Carrying Amount | ||||
Land | 12,140 | |||
Building & Improvements | 81,778 | |||
Total | 93,918 | |||
Accumulated depreciation | 0 | |||
Office Building | MaxWell | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 13,040 | |||
Building & Improvements | 26,960 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 17,795 | |||
Carrying Costs | 3,729 | |||
Gross Carrying Amount | ||||
Land | 13,040 | |||
Building & Improvements | 48,484 | |||
Total | 61,524 | |||
Accumulated depreciation | 0 | |||
Office Building | 11601 Wilshire | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 28,978 | |||
Building & Improvements | 321,273 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 17,641 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 28,978 | |||
Building & Improvements | 338,914 | |||
Total | 367,892 | |||
Accumulated depreciation | (15,876) | |||
Office Building | Hill7 | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 101,000 | |||
Initial Costs | ||||
Land | 36,888 | |||
Building & Improvements | 137,079 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 13,394 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 36,888 | |||
Building & Improvements | 150,473 | |||
Total | 187,361 | |||
Accumulated depreciation | (5,466) | |||
Office Building | Page Mill Hill | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 0 | |||
Building & Improvements | 131,402 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 1,958 | |||
Carrying Costs | 0 | |||
Gross Carrying Amount | ||||
Land | 0 | |||
Building & Improvements | 133,360 | |||
Total | 133,360 | |||
Accumulated depreciation | (5,046) | |||
Media & Entertainment | Sunset Gower Studios | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 5,001 | |||
Initial Costs | ||||
Land | 79,320 | |||
Building & Improvements | 64,697 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 31,416 | |||
Carrying Costs | 207 | |||
Gross Carrying Amount | ||||
Land | 79,320 | |||
Building & Improvements | 96,320 | |||
Total | 175,640 | |||
Accumulated depreciation | (23,644) | |||
Media & Entertainment | Sunset Bronson | ||||
SEC Schedule III, Real Estate and Accumulated Depreciation | ||||
Encumbrances | 0 | |||
Initial Costs | ||||
Land | 77,698 | |||
Building & Improvements | 32,374 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 31,543 | |||
Carrying Costs | 422 | |||
Gross Carrying Amount | ||||
Land | 77,698 | |||
Building & Improvements | 64,339 | |||
Total | 142,037 | |||
Accumulated depreciation | (11,485) | |||
Media & Entertainment | Sunset Las Palmas Studios | ||||
Initial Costs | ||||
Land | 118,892 | |||
Building & Improvements | 86,922 | |||
Cost Capitalized Subsequent to Acquisition | ||||
Improvements | 4,773 | |||
Carrying Costs | 13 | |||
Gross Carrying Amount | ||||
Land | 118,892 | |||
Building & Improvements | 91,708 | |||
Total | 210,600 | |||
Accumulated depreciation | $ (1,974) |
Schedule III - Reconciliation o
Schedule III - Reconciliation of Carrying Amount of Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
SEC Schedule III, Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward] | |||
Beginning balance | $ 6,507,484 | $ 5,976,526 | $ 2,239,741 |
Acquisitions | 255,848 | 597,751 | 3,699,289 |
Improvements, capitalized costs | 330,809 | 296,399 | 198,561 |
Total additions during period | 586,657 | 894,150 | 3,897,850 |
Disposal (fully depreciated assets and early terminations) | (27,451) | (13,556) | |
Cost of property sold | (335,741) | (147,509) | |
Total deductions during period | (449,892) | (363,192) | (161,065) |
Beginning balance | 6,644,249 | 6,507,484 | 5,976,526 |
Reclassification to assets associated with real estate held for sale | (220,808) | (629,004) | (353,067) |
Total investment in real estate, end of year | 6,423,441 | 5,878,480 | 5,623,459 |
SEC Schedule III, Reconciliation of Real Estate Accumulated Depreciation [Roll Forward] | |||
Total accumulated depreciation, beginning of year | (423,950) | (272,724) | (142,561) |
Depreciation of real estate | (206,838) | (182,219) | (151,066) |
Total additions during period | (206,838) | (182,219) | (151,066) |
Deletions | 37,925 | 25,622 | 12,999 |
Write-offs due to sale | 43,452 | 5,371 | 7,904 |
Total deductions during period | 81,377 | 30,993 | 20,903 |
Ending balance, before reclassification to assets associated with real estate held for sale | (549,411) | (423,950) | (272,724) |
Reclassification to assets associated with real estate held for sale | 15,913 | 48,743 | 8,865 |
Total accumulated depreciation, end of year | $ (533,498) | $ (375,207) | $ (263,859) |