Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 2018 | |
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 154,317,623 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,420 | ||
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, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Investment in real estate, at cost | $ 7,059,537 | $ 6,219,361 |
Accumulated depreciation and amortization | (695,631) | (521,370) |
Investment in real estate, net | 6,363,906 | 5,697,991 |
Cash and cash equivalents | 53,740 | 78,922 |
Restricted cash | 14,451 | 22,358 |
Accounts receivable, net | 14,004 | 4,234 |
Straight-line rent receivables, net | 142,369 | 106,466 |
Deferred leasing costs and lease intangible assets, net | 279,896 | 239,029 |
U.S. Government Securities | 146,880 | 0 |
Prepaid expenses and other assets, net | 55,633 | 61,139 |
Assets associated with real estate held for sale | 0 | 411,931 |
TOTAL ASSETS | 7,070,879 | 6,622,070 |
LIABILITIES | ||
Notes payable, net | 2,623,835 | 2,421,380 |
Accounts payable, accrued liabilities and other | 175,300 | 162,346 |
Lease intangible liabilities, net | 45,612 | 49,540 |
Security deposits and prepaid rent | 68,687 | |
Liabilities associated with real estate held for sale | 0 | 4,903 |
TOTAL LIABILITIES | 3,117,793 | 2,700,929 |
Redeemable preferred units of the operating partnership | 9,815 | 10,177 |
Redeemable non-controlling interest in consolidated real estate entities | 113,141 | 0 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Common stock, $0.01 par value, 490,000,000 authorized, 154,371,538 shares and 155,602,508 shares outstanding at December 31, 2018 and 2017, respectively | 1,543 | 1,556 |
Additional paid-in capital | 3,524,502 | 3,622,988 |
Accumulated other comprehensive income | 17,501 | 13,227 |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,543,546 | 3,637,771 |
TOTAL EQUITY | 3,830,130 | 3,910,964 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Total Liabilities and Equity/Capital | 7,070,879 | 6,622,070 |
Unsecured and secured debt, net | ||
LIABILITIES | ||
Notes payable, net | 2,623,835 | 2,421,380 |
In-substance defeased debt | ||
LIABILITIES | ||
Notes payable, net | 138,223 | 0 |
Joint venture partner debt | ||
LIABILITIES | ||
Notes payable, net | 66,136 | 0 |
Non-controlling Interest—Members in Consolidated Entities | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 268,246 | 258,602 |
Non-controlling interest—Units in the operating partnership | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 18,338 | 14,591 |
TOTAL EQUITY | 18,338 | 14,591 |
Hudson Pacific Partners, L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 7,059,537 | 6,219,361 |
Accumulated depreciation and amortization | (695,631) | (521,370) |
Investment in real estate, net | 6,363,906 | 5,697,991 |
Cash and cash equivalents | 53,740 | 78,922 |
Restricted cash | 14,451 | 22,358 |
Accounts receivable, net | 14,004 | 4,234 |
Straight-line rent receivables, net | 142,369 | 106,466 |
Deferred leasing costs and lease intangible assets, net | 279,896 | 239,029 |
U.S. Government Securities | 146,880 | 0 |
Prepaid expenses and other assets, net | 55,633 | 61,139 |
Assets associated with real estate held for sale | 0 | 411,931 |
TOTAL ASSETS | 7,070,879 | 6,622,070 |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 175,300 | 162,346 |
Lease intangible liabilities, net | 45,612 | 49,540 |
Security deposits and prepaid rent | 68,687 | 62,760 |
Liabilities associated with real estate held for sale | 0 | 4,903 |
TOTAL LIABILITIES | 3,117,793 | 2,700,929 |
Redeemable preferred units of the operating partnership | 9,815 | 10,177 |
Redeemable non-controlling interest in consolidated real estate entities | 113,141 | 0 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Accumulated other comprehensive income | 17,565 | 13,276 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Common units, 154,940,583 and 156,171,553 issued and outstanding at December 31, 2018 and 2017, respectively. | 3,544,319 | 3,639,086 |
Total Hudson Pacific Properties, L.P. partners' capital | 3,561,884 | 3,652,362 |
Non-controlling interest—members in consolidated entities | 268,246 | 258,602 |
TOTAL CAPITAL | 3,830,130 | 3,910,964 |
Total Liabilities and Equity/Capital | 7,070,879 | 6,622,070 |
Hudson Pacific Partners, L.P. | Unsecured and secured debt, net | ||
LIABILITIES | ||
Notes payable, net | 2,623,835 | 2,421,380 |
Hudson Pacific Partners, L.P. | In-substance defeased debt | ||
LIABILITIES | ||
Notes payable, net | 138,223 | 0 |
Hudson Pacific Partners, L.P. | Joint venture partner debt | ||
LIABILITIES | ||
Notes payable, net | $ 66,136 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 154,371,538 | 155,602,508 |
Hudson Pacific Partners, L.P. | ||
Common Stock: | ||
Company stock, shares outstanding | 154,940,583 | 156,171,553 |
Common stock, shares issued | 154,940,583 | 156,171,553 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES | |||
Revenues | $ 728,418 | $ 728,139 | $ 639,639 |
OPERATING EXPENSES | |||
General and administrative | 61,027 | 54,459 | 52,400 |
Depreciation and amortization | 251,003 | 283,570 | 269,087 |
TOTAL OPERATING EXPENSES | 579,740 | 591,536 | 550,232 |
OTHER EXPENSE (INCOME) | |||
Interest expense | 83,167 | 90,037 | 76,044 |
Interest income | (1,718) | (97) | (260) |
Unrealized gain on non-real estate investment | (928) | 0 | 0 |
Unrealized loss on ineffective portion of derivative instrument | 0 | 70 | 1,436 |
Transaction-related expenses | 535 | 598 | 376 |
Other income | (822) | (2,992) | (1,558) |
Gains on sale of real estate | (43,337) | (45,574) | (30,389) |
TOTAL OTHER EXPENSES | 36,897 | 42,042 | 45,649 |
NET INCOME (LOSS) | 111,781 | 94,561 | 43,758 |
Net income attributable to preferred stock and units | (618) | (636) | (636) |
Net income attributable to participating securities | (663) | (1,003) | (766) |
Net income attributable to non-controlling interest in consolidated real estate entities | (11,883) | (24,960) | (9,290) |
Net income attributable to redeemable non-controlling interest in consolidated real estate entities | (169) | 0 | 0 |
Net income attributable to non-controlling interest in the operating partnership | (358) | (375) | (5,848) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 98,090 | $ 67,587 | $ 27,218 |
Basic and diluted per share amounts: | |||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.26 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.25 |
Weighted average shares of common stock outstanding—basic (in shares) | 155,445,247 | 153,488,730 | 106,188,902 |
Weighted average shares of common stock outstanding—diluted (in shares) | 155,696,486 | 153,882,814 | 110,369,055 |
Office | |||
REVENUES | |||
Rental Revenue | $ 533,184 | $ 545,453 | $ 486,956 |
Tenant Recoveries Revenue | 92,760 | 92,244 | 84,386 |
Parking And Other Revenues | 26,573 | 29,413 | 21,894 |
Revenues | 652,517 | 667,110 | 593,236 |
OPERATING EXPENSES | |||
Operating expenses | 226,820 | 218,873 | 202,935 |
TOTAL OPERATING EXPENSES | 226,820 | 218,873 | 202,935 |
Studio Segment | |||
REVENUES | |||
Rental Revenue | 44,734 | 36,529 | 26,837 |
Tenant Recoveries Revenue | 2,013 | 1,336 | 1,884 |
Revenues | 75,901 | 61,029 | 46,403 |
OPERATING EXPENSES | |||
Operating expenses | 40,890 | 34,634 | 25,810 |
TOTAL OPERATING EXPENSES | 40,890 | 34,634 | 25,810 |
Hudson Pacific Partners, L.P. | |||
REVENUES | |||
Revenues | 728,418 | 728,139 | 639,639 |
OPERATING EXPENSES | |||
General and administrative | 61,027 | 54,459 | 52,400 |
Depreciation and amortization | 251,003 | 283,570 | 269,087 |
TOTAL OPERATING EXPENSES | 579,740 | 591,536 | 550,232 |
OTHER EXPENSE (INCOME) | |||
Interest expense | 83,167 | 90,037 | 76,044 |
Interest income | (1,718) | (97) | (260) |
Unrealized gain on non-real estate investment | (928) | 0 | 0 |
Unrealized loss on ineffective portion of derivative instrument | 0 | 70 | 1,436 |
Transaction-related expenses | 535 | 598 | 376 |
Other income | (822) | (2,992) | (1,558) |
Gains on sale of real estate | (43,337) | (45,574) | (30,389) |
TOTAL OTHER EXPENSES | 36,897 | 42,042 | 45,649 |
NET INCOME (LOSS) | 111,781 | 94,561 | 43,758 |
Net income attributable to preferred stock and units | (618) | (636) | (636) |
Net income attributable to participating securities | (663) | (1,003) | (766) |
Net income attributable to non-controlling interest in consolidated real estate entities | (11,883) | (24,960) | (9,290) |
Net income attributable to redeemable non-controlling interest in consolidated real estate entities | (169) | 0 | 0 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 98,448 | 67,962 | 33,066 |
Net income (loss) attributable to Hudson Pacific Properties, L.P. | $ 99,729 | $ 69,601 | $ 34,468 |
Basic and diluted per share amounts: | |||
Weighted average shares of common stock outstanding—basic (in shares) | 156,014,292 | 154,276,773 | 145,595,246 |
Weighted average shares of common stock outstanding—diluted (in shares) | 156,265,531 | 154,670,857 | 146,739,246 |
Basic and diluted per unit amounts: | |||
Net income attributable to common unitholders - basic (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.23 |
Net income attributable to common unitholders — diluted (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.23 |
Weighted average shares of common units outstanding - basic (in shares) | 156,014,292 | 154,276,773 | 145,595,246 |
Weighted average shares of common units outstanding - diluted (in shares) | 156,265,531 | 154,670,857 | 146,739,246 |
Hudson Pacific Partners, L.P. | Office | |||
REVENUES | |||
Rental Revenue | $ 533,184 | $ 545,453 | $ 486,956 |
Tenant Recoveries Revenue | 92,760 | 92,244 | 84,386 |
Parking And Other Revenues | 26,573 | 29,413 | 21,894 |
Revenues | 652,517 | 667,110 | 593,236 |
OPERATING EXPENSES | |||
Operating expenses | 226,820 | 218,873 | 202,935 |
Hudson Pacific Partners, L.P. | Studio Segment | |||
REVENUES | |||
Rental Revenue | 44,734 | 36,529 | 26,837 |
Tenant Recoveries Revenue | 2,013 | 1,336 | 1,884 |
Revenues | 75,901 | 61,029 | 46,403 |
OPERATING EXPENSES | |||
Operating expenses | 40,890 | 34,634 | 25,810 |
Other property-related revenue | Studio Segment | |||
REVENUES | |||
Other Revenues | 28,191 | 22,805 | 17,380 |
Other property-related revenue | Hudson Pacific Partners, L.P. | Studio Segment | |||
REVENUES | |||
Other Revenues | 28,191 | 22,805 | 17,380 |
Other | Studio Segment | |||
REVENUES | |||
Other Revenues | 963 | 359 | 302 |
Other | Hudson Pacific Partners, L.P. | Studio Segment | |||
REVENUES | |||
Other Revenues | $ 963 | $ 359 | $ 302 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net income (loss) | $ 111,781 | $ 94,561 | $ 43,758 |
Other comprehensive income: change in fair value of derivatives | 4,058 | 7,398 | 5,942 |
Comprehensive income (loss) | 115,839 | 101,959 | 49,700 |
Comprehensive income attributable to preferred stock and units | (618) | (636) | (636) |
Comprehensive income attributable to participating securities | (660) | (1,003) | (766) |
Net income attributable to non-controlling interest in consolidated real estate entities | (11,883) | (24,960) | (9,290) |
Comprehensive income attributable to redeemable non-controlling interest in consolidated real estate entities | (169) | 0 | 0 |
Comprehensive income attributable to non-controlling interest in the operating partnership | (372) | (420) | (1,213) |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 102,137 | 74,940 | 37,795 |
Hudson Pacific Partners, L.P. | |||
Net income (loss) | 111,781 | 94,561 | 43,758 |
Other comprehensive income: change in fair value of derivatives | 4,058 | 7,398 | 5,942 |
Comprehensive income (loss) | 115,839 | 101,959 | 49,700 |
Comprehensive income attributable to preferred stock and units | (618) | (636) | (636) |
Comprehensive income attributable to participating securities | (660) | (1,003) | (766) |
Net income attributable to non-controlling interest in consolidated real estate entities | (11,883) | (24,960) | (9,290) |
Comprehensive income attributable to redeemable non-controlling interest in consolidated real estate entities | (169) | 0 | 0 |
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 102,509 | $ 75,360 | $ 39,008 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common 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, 2015 | $ 3,729,037 | $ 891 | $ 1,710,979 | $ (44,955) | $ (1,081) | $ 1,800,578 | $ 262,625 |
Beginning 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 | 0 | ||||
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 | 3,109,394 | (16,971) | 9,496 | 294,859 | 304,608 |
Ending balance (in shares) at Dec. 31, 2016 | 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 | 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 | 3,622,988 | 0 | 13,227 | 14,591 | 258,602 |
Ending balance (in shares) at Dec. 31, 2017 | 155,602,508 | 155,602,508 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Transition Entry | $ 0 | (231) | 230 | 1 | 0 | ||
Contributions | 2,486 | 2,486 | |||||
Distributions | (4,725) | (4,725) | |||||
Issuance of unrestricted stock | 0 | $ 5 | (5) | ||||
Issuance of unrestricted stock (in shares) | 571,481 | ||||||
Shares withheld to satisfy tax withholding | (4,753) | $ (2) | (4,751) | ||||
Shares withheld to satisfy tax withholding (in shares) | (163,191) | ||||||
Repurchase of common stock | $ (50,016) | $ (16) | (50,000) | ||||
Repurchase of common stock (in shares) | (1,639,260) | ||||||
Declared dividend | $ (157,003) | (57,769) | (98,522) | (712) | |||
Amortization of stock-based compensation | 18,125 | 14,039 | 4,086 | ||||
Net income (loss) | 110,994 | 98,753 | 358 | 11,883 | |||
Change in fair value of derivatives | 4,058 | 4,044 | 14 | ||||
Ending balance at Dec. 31, 2018 | $ 3,830,130 | $ 1,543 | $ 3,524,502 | $ 0 | $ 17,501 | $ 18,338 | $ 268,246 |
Ending balance (in shares) at Dec. 31, 2018 | 154,371,538 | 154,371,538 |
Consolidated Statements of Capi
Consolidated Statements of Capital - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance (in shares) | 155,602,508 | ||
Cumulative-effect adjjustment to other comprehensive income | $ 0 | ||
Contributions | $ 2,486 | 3,870 | $ 33,996 |
Distributions | (4,725) | (74,836) | (1,303) |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | |
Issuance of unrestricted stock | 0 | 0 | 6 |
Units withheld to satisfy tax withholding | (4,753) | (16,041) | (8,427) |
Repurchase of common stock | $ (50,016) | ||
Repurchase of common stock (in shares) | (1,639,260) | ||
Declared distributions | $ (157,003) | (158,544) | (117,819) |
Amortization of unit-based compensation | 18,125 | 15,915 | 14,654 |
Net income (loss) | 110,994 | 93,925 | 43,122 |
Change in fair value of derivatives | $ 4,058 | 7,398 | 5,942 |
Repurchase of common units | $ (310,855) | (1,446,039) | |
Ending balance (in shares) | 154,371,538 | 155,602,508 | |
Hudson Pacific Partners, L.P. | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,910,964 | $ 3,702,750 | 3,729,037 |
Beginning balance (in shares) | 156,171,553 | ||
Contributions | $ 2,486 | 3,870 | 33,996 |
Distributions | (4,725) | (74,836) | (1,303) |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | |
Issuance of unrestricted stock | 0 | 0 | 6 |
Units withheld to satisfy tax withholding | (4,769) | (16,041) | (8,427) |
Repurchase of common stock | (50,000) | ||
Declared distributions | (157,003) | (158,544) | (117,819) |
Amortization of unit-based compensation | 18,125 | 15,915 | 14,654 |
Net income (loss) | 110,994 | 93,925 | 43,122 |
Change in fair value of derivatives | 4,058 | 7,398 | 5,942 |
Repurchase of common units | (310,855) | 1,446,039 | |
Ending balance | $ 3,830,130 | $ 3,910,964 | 3,702,750 |
Ending balance (in shares) | 154,940,583 | 156,171,553 | |
Hudson Pacific Partners, L.P. | Total Partners’ Capital | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,652,362 | $ 3,398,142 | 3,466,412 |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | 1,449,581 | |
Issuance of unrestricted stock | 0 | 6 | |
Units withheld to satisfy tax withholding | (4,769) | (16,041) | (8,427) |
Repurchase of common stock | (50,000) | ||
Declared distributions | (157,003) | (158,544) | (117,819) |
Amortization of unit-based compensation | 18,125 | 15,915 | 14,654 |
Net income (loss) | 99,111 | 68,965 | 33,832 |
Change in fair value of derivatives | 4,058 | 7,398 | 5,942 |
Repurchase of common units | (310,855) | 1,446,039 | |
Ending balance | 3,561,884 | 3,652,362 | 3,398,142 |
Hudson Pacific Partners, L.P. | Common Stock | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 3,639,086 | $ 3,392,264 | $ 3,466,476 |
Beginning balance (in shares) | 156,171,553 | 145,942,855 | 145,450,095 |
Cumulative-effect adjjustment to other comprehensive income | $ (231) | ||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | $ 647,382 | $ 1,449,581 | |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 18,656,575 | 47,010,695 | |
Issuance of unrestricted stock | $ 0 | $ 6 | |
Issuance of unrestricted stock (in shares) | 571,481 | 917,086 | 590,520 |
Units withheld to satisfy tax withholding | $ (4,769) | $ (16,041) | $ (8,427) |
Units withheld to satisfy tax withholding (in shares) | (163,191) | (463,388) | (262,760) |
Repurchase of common stock | $ (50,000) | ||
Repurchase of common stock (in shares) | (1,639,260) | ||
Declared distributions | $ (157,003) | $ (158,544) | $ (117,819) |
Amortization of unit-based compensation | 18,125 | 15,915 | 14,654 |
Net income (loss) | 99,111 | 68,965 | 33,832 |
Repurchase of common units | $ (310,855) | $ (1,446,039) | |
Repurchase of common units (in shares) | (8,881,575) | (46,845,695) | |
Ending balance | $ 3,544,319 | $ 3,639,086 | $ 3,392,264 |
Ending balance (in shares) | 154,940,583 | 156,171,553 | 145,942,855 |
Hudson Pacific Partners, L.P. | Accumulated Other Comprehensive (Loss) Income | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | $ 13,276 | $ 5,878 | $ (64) |
Cumulative-effect adjjustment to other comprehensive income | 231 | ||
Change in fair value of derivatives | 4,058 | 7,398 | 5,942 |
Ending balance | 17,565 | 13,276 | 5,878 |
Hudson Pacific Partners, L.P. | Non-controlling interest—Members in Consolidated Entities | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||
Beginning balance | 258,602 | 304,608 | 262,625 |
Contributions | 2,486 | 3,870 | 33,996 |
Distributions | (4,725) | (74,836) | (1,303) |
Net income (loss) | 11,883 | 24,960 | 9,290 |
Ending balance | $ 268,246 | $ 258,602 | $ 304,608 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 111,781 | $ 94,561 | $ 43,758 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 251,003 | 283,570 | 269,087 |
Non-cash portion of interest expense | 5,965 | 6,032 | 4,464 |
Amortization of stock/unit-based compensation | 17,028 | 15,079 | 14,144 |
Straight-line rents | (36,202) | (29,638) | (29,079) |
Straight-line rent expenses | 711 | 433 | 1,023 |
Amortization of above- and below-market leases, net | (17,593) | (18,062) | (19,734) |
Amortization of above- and below-market ground lease, net | 2,422 | 2,505 | 2,160 |
Amortization of lease incentive costs | 1,464 | 1,546 | 1,388 |
Other non-cash adjustments | 369 | 883 | 707 |
Gains on sale of real estate | (43,337) | (45,574) | (30,389) |
Change in operating assets and liabilities: | |||
Accounts receivable | (10,854) | 1,929 | 15,088 |
Deferred leasing costs and lease intangibles | (55,286) | (32,244) | (43,476) |
Prepaid expenses and other assets | (2,978) | 233 | (7,312) |
Accounts payable and accrued liabilities | (13,184) | 19,447 | (4,426) |
Security deposits and prepaid rent | 3,317 | (7,741) | 9,371 |
Net cash provided by operating activities | 214,626 | 292,959 | 226,774 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | (351,277) | (302,447) | (258,718) |
Property acquisitions | (362,687) | (257,734) | (630,145) |
Purchase of U.S. Government securities | (149,176) | 0 | 0 |
Maturities of U.S. Government securities | 2,229 | 0 | 0 |
Proceeds from sale of real estate | 454,542 | 212,250 | 372,302 |
Distributions from unconsolidated entities | 14,036 | 15,964 | 0 |
Contributions to unconsolildated entity | 0 | (1,071) | (37,228) |
Proceeds from repayment of notes receivable | 0 | 0 | 28,892 |
Net cash used in investing activities | (392,333) | (333,038) | (524,897) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 650,000 | 766,660 | 1,318,000 |
Payments of unsecured and secured debt | (449,711) | (822,526) | (888,607) |
Proceeds from joint venture partner debt | 66,136 | 0 | |
Proceeds from issuance of common stock, net | 0 | 647,382 | 1,449,581 |
Repurchase of common units in the operating partnership | 0 | (310,855) | (1,446,039) |
Redemption of Series A preferred units | (362) | 0 | 0 |
Dividends paid to common stock and unit-holders | (157,003) | (158,544) | (117,819) |
Dividends paid to preferred unit-holders | (618) | (636) | (636) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 100,223 | 0 | 0 |
Contribution of non-controlling member in consolidated real estate entities | 2,486 | 3,870 | 33,996 |
Distributions to non-controlling member in consolidated real estate entities | (4,725) | (74,836) | (1,303) |
Payments to satisfy tax withholding | (4,769) | (16,041) | (8,427) |
Repurchase of common stock | (50,000) | 0 | 0 |
Payments of loan costs | (7,039) | (1,307) | (3,992) |
Net cash provided by financing activities | 144,618 | 33,167 | 334,754 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (33,089) | (6,912) | 36,631 |
Cash and cash equivalents and restricted cash—beginning of period | 101,280 | 108,192 | 71,561 |
Cash and cash equivalents and restricted cash—end of period | 68,191 | 101,280 | 108,192 |
Hudson Pacific Partners, L.P. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | 111,781 | 94,561 | 43,758 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 251,003 | 283,570 | 269,087 |
Non-cash portion of interest expense | 5,965 | 6,032 | 4,464 |
Amortization of stock/unit-based compensation | 17,028 | 15,079 | 14,144 |
Straight-line rents | (36,202) | (29,638) | (29,079) |
Straight-line rent expenses | 711 | 433 | 1,023 |
Amortization of above- and below-market leases, net | (17,593) | (18,062) | (19,734) |
Amortization of above- and below-market ground lease, net | 2,422 | 2,505 | 2,160 |
Amortization of lease incentive costs | 1,464 | 1,546 | 1,388 |
Other non-cash adjustments | 369 | 883 | 707 |
Gains on sale of real estate | (43,337) | (45,574) | (30,389) |
Change in operating assets and liabilities: | |||
Accounts receivable | (10,854) | 1,929 | 15,088 |
Deferred leasing costs and lease intangibles | (55,286) | (32,244) | (43,476) |
Prepaid expenses and other assets | (2,978) | 233 | (7,312) |
Accounts payable and accrued liabilities | (13,184) | 19,447 | (4,426) |
Security deposits and prepaid rent | 3,317 | (7,741) | 9,371 |
Net cash provided by operating activities | 214,626 | 292,959 | 226,774 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | (351,277) | (302,447) | (258,718) |
Property acquisitions | (362,687) | (257,734) | (630,145) |
Purchase of U.S. Government securities | (149,176) | 0 | 0 |
Maturities of U.S. Government securities | 2,229 | 0 | 0 |
Proceeds from sale of real estate | 454,542 | 212,250 | 372,302 |
Distributions from unconsolidated entities | 14,036 | 15,964 | 0 |
Contributions to unconsolildated entity | 0 | (1,071) | (37,228) |
Proceeds from repayment of notes receivable | 0 | 0 | 28,892 |
Net cash used in investing activities | (392,333) | (333,038) | (524,897) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 650,000 | 766,660 | 1,318,000 |
Payments of unsecured and secured debt | (449,711) | (822,526) | (888,607) |
Proceeds from joint venture partner debt | 66,136 | 0 | 0 |
Proceeds from issuance of common stock, net | 0 | 647,382 | 1,449,581 |
Repurchase of common units in the operating partnership | 0 | (310,855) | (1,446,039) |
Redemption of Series A preferred units | (362) | 0 | 0 |
Dividends paid to common stock and unit-holders | (157,003) | (158,544) | (117,819) |
Dividends paid to preferred unit-holders | (618) | (636) | (636) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 100,223 | 0 | 0 |
Contribution of non-controlling member in consolidated real estate entities | 2,486 | 3,870 | 33,996 |
Distributions to non-controlling member in consolidated real estate entities | (4,725) | (74,836) | (1,303) |
Payments to satisfy tax withholding | (4,769) | (16,041) | (8,427) |
Repurchase of common stock | (50,000) | 0 | 0 |
Payments of loan costs | (7,039) | (1,307) | (3,992) |
Net cash provided by financing activities | 144,618 | 33,167 | 334,754 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (33,089) | (6,912) | 36,631 |
Cash and cash equivalents and restricted cash—beginning of period | 101,280 | 108,192 | 71,561 |
Cash and cash equivalents and restricted cash—end of period | $ 68,191 | $ 101,280 | $ 108,192 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2018 | |
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 studio 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, 2018: Segments Number of Properties Square Feet (unaudited) Office 52 13,853,401 Studio 3 1,224,403 TOTAL (1) 55 15,077,804 _________________ 1. Includes redevelopment and development properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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 balances related to Peninsula Office Park property which was classified as held for sale during the second quarter of 2018 and was sold on July 27, 2018. 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, the Company first evaluates 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 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, 2018, the Company has determined that five joint ventures and our operating partnership met the definition of a VIE. Four of the joint ventures are consolidated entities and one joint venture is a non-consolidated entity. Consolidated Entities As of December 31, 2018, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico (collectively, formerly known as Westside Pavilion) 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC (“HPP-MAC JV”). On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The HPP-MAC JV is held 75% by the Company and 25% by Macerich, with the Company serving as the managing member and developer. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. On October 9, 2018, the Company entered into a joint venture with Allianz U.S. Private REIT LP (“Allianz”) to purchase the Ferry Building property. The Company owns 55% of the joint venture. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. As of December 31, 2018 and 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 Entity As of December 31, 2018, the Company has determined it is not the primary beneficiary of one joint venture that met the definition of a VIE. 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 share of net income or loss from the entity is included within other income on the Consolidated Statements of Operations. The Company’s net equity investment of the non-consolidated entities of $86 thousand and $14.2 million for the years ended December 31, 2018 and 2017, respectively, is reflected within prepaid expenses and other assets on the Consolidated Balance Sheets, which represents the Company’s maximum exposure for loss. On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The Company owns 21% of the non-consolidated entity. The assets of the joint venture consist of notes receivable. On July 10, 2018, the Company received a return of capital related to its share of the repayment of the notes receivable. 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 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 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 term plus the extended below-market 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 commissions, legal and other leasing related costs. The fair value debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity, which includes internal direct compensation costs. Costs associated with development and redevelopment that are capitalized include 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, 2018 2017 2016 Capitalized personnel costs $ 12,233 $ 10,853 $ 9,347 Capitalized interest 14,815 10,655 11,307 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 all 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, 2018, 2017, and 2016. 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, 2018, 2017 and 2016. 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, 2018, 2017 and 2016. 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. 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, 2018 2017 2016 BEGINNING OF THE 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 END OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 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, 2018 December 31, 2017 Accounts receivable $ 16,494 $ 6,706 Allowance for doubtful accounts (2,490) (2,472) ACCOUNTS RECEIVABLE, NET (1) $ 14,004 $ 4,234 _____________ 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, 2018 December 31, 2017 Straight-line rent receivables $ 142,369 $ 106,466 Allowance for doubtful accounts — — STRAIGHT-LINE RENT RECEIVABLES, NET (1) $ 142,369 $ 106,466 _____________ 1. Excludes balances related to properties that have been classified as held for sale. U.S. Government Securities The Company holds U.S. Government securities related to assumed debt held by a trust subsidiary. These securities are considered held to maturity investments and are carried at amortized cost on the Consolidated Balance Sheets. The Company does not intend to sell the investments and it is not more likely than not that the company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. As of December 31, 2018, the Company had $806 thousand of gross unrealized gains and no unrealized losses related to these U.S. Government securities. Prepaid Expenses and Other Assets, net The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2018 December 31, 2017 Derivative assets $ 16,687 $ 12,586 Goodwill 8,754 8,754 Non-real estate investment 2,713 1,785 Investment in unconsolidated entities 86 14,240 Other 27,393 23,774 PREPAID EXPENSES AND OTHER ASSETS, NET (1) $ 55,633 $ 61,139 _____________ 1. Excludes balances related to properties that have been classified as held for sale. Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) guest parking revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must take parking revenues Office segment: tenant recoveries and parking and other Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: other property-related revenue Guest parking revenues Parking revenue that is not associated with lease agreements Office segment: parking and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Currently, rental revenues are accounted for under ASC 840, Leases (“ASC 840”). 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. Currently, tenant recoveries are accounted for under ASC 840. 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. Rental revenues and tenant recoveries and other tenant-related revenues will be accounted for under ASC 842, Leases (“ASC 842”), which the Company will adopt on January 1, 2019. The Company elected the practical expedient to classify tenant recoveries as a single lease component and account for tenant recoveries with rental revenues in the Consolidated Statement of Operations. Please refer to our Update on ASC 842 implementation section below for details. Ancillary revenues and guest parking revenues have been accounted for under ASC 606 since the Company adopted this standard on January 1, 2018. This standard requires the Company to recognize revenues based on a five-step model and results in the consideration being recognized once all performance obligations are satisfied. The entity satisfies its performance obligations all at once upon completion of services. The timing and pattern of revenue recognition as it relates to ancillary revenues and guest parking revenues have not changed from those under ASC 605, Revenue Recognition. As of December 31, 2018, the Company recognized ancillary revenues and guest parking revenues of $23.9 million and $24.6 million, respectively. As of December 31, 2018, the Company had $3.8 million and $1.0 million of receivables related to ancillary revenues and guest parking revenues, respectively. Sale of real estate has been accounted for under ASC 610, Other Income, since the Company adopted this standard on January 1, 2018. As a result of the adoption, there was no change in respect to the timing and pattern of revenue recognition. This standard requires the Company to apply certain recognition and measurement principles in accordance with ASC 606 when it de-recognizes nonfinancial assets and in-substance nonfinancial assets, and the counterparty is not a customer. This is the case for the Company’s sales of real estate, and as a result the Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract includes ongoing involvement by the seller with the sold property, the seller must evaluate each promised good or service under the contract to determine whether it represents a performance obligation, constitutes a guarantee or prevents the transfer of control. The timing and pattern of revenue recognition might change as it relates to gains of sale of real estate if the sale includes continued involvement that represents a separate performance obligation. 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 within the respective debt 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. In 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. As a result of the adoption, the Company no longer recognizes unrealized gains or losses related to ineffective portions of derivatives 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. With the adoption of ASU 2018-07, Compensation, in 2018, share-based payments granted to non-employees are accounted for in the same manner as share-based payments granted to employees. 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, Hill7 and Ferry Building 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 partn |
Investment in Real Estate
Investment in Real Estate | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Investment in Real Estate | $ 4,903 |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 12 Months Ended |
Dec. 31, 2018 | |
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 as of: December 31, 2018 December 31, 2017 Deferred leasing costs and in-place lease intangibles 336,535 301,945 Accumulated amortization (123,432) (127,703) Deferred leasing costs and in-place lease intangibles, net 213,103 174,242 Below-market ground leases 72,916 68,388 Accumulated amortization (8,932) (6,498) Below-market ground leases, net 63,984 61,890 Above-market leases 8,425 18,028 Accumulated amortization (5,616) (15,131) Above-market leases, net 2,809 2,897 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET (1) $ 279,896 $ 239,029 Below-market leases 101,736 103,597 Accumulated amortization (57,043) (55,019) Below-market leases, net 44,693 48,578 Above-market ground leases 1,095 1,095 Accumulated amortization (176) (133) Above-market ground leases, net 919 962 LEASE INTANGIBLE LIABILITIES, NET (1) $ 45,612 $ 49,540 _____________ 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, 2018 2017 2016 Deferred leasing costs and in-place lease intangibles ( 1 ) $ (46,690) $ (72,883) $ (84,492) Below-market ground leases ( 2 ) $ (2,465) $ (2,548) $ (2,203) Above-market leases ( 3 ) $ (1,550) $ (6,953) $ (11,259) Below-market leases ( 3 ) $ 19,143 $ 25,015 $ 30,993 Above-market ground leases ( 2 ) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in revenues 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, 2018: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2019 $ (40,100) $ (2,504) $ (1,190) $ 13,296 $ 43 2020 (30,387) (2,504) (610) 10,027 43 2021 (24,099) (2,504) (428) 7,500 43 2022 (18,535) (2,504) (250) 4,877 43 2023 (15,063) (2,504) (222) 3,965 43 Thereafter (84,919) (51,464) (109) 5,028 704 TOTAL (1) $ (213,103) $ (63,984) $ (2,809) $ 44,693 $ 919 _____________ 1. Excludes balances related to properties that have been classified as held for s ale. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information with respect to our outstanding indebtedness: December 31, 2018 December 31, 2017 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2) (3) $ 400,000 $ 100,000 LIBOR + 1.05% to 1.50% 3/13/2022 ( 4 ) Term loan A (2)( 5 ) 300,000 300,000 LIBOR + 1.20% to 1.70% 4/1/2020 ( 6 ) Term loan C (2) 75,000 75,000 LIBOR + 1.30% to 2.20% 11/17/2020 Term loan B (2)( 7 ) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan D (2)( 8 ) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series E notes 50,000 50,000 3.66% 9/15/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series D notes 150,000 150,000 3.98% 7/6/2026 Registered senior notes 400,000 400,000 3.95% 11/1/2027 Series C notes 56,000 56,000 4.79% 12/16/2027 Total unsecured debt 2,275,000 1,975,000 Secured debt Sunset Gower Studios/Sunset Bronson Studios (9) 5,001 5,001 LIBOR + 2.25% 3/4/2019 ( 4 ) Met Park North (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (11) 26,880 27,418 5.32% 3/11/2022 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (1 2 ) 101,000 101,000 3.38% 11/6/2028 Rincon Center — 98,392 5.13% N/A Total secured debt 365,381 464,311 Total unsecured and secured debt 2,640,381 2,439,311 Unamortized deferred financing costs/loan discounts (1 3 ) (16,546) (17,931) TOTAL UNSECURED AND SECURED DEBT, NET $ 2,623,835 $ 2,421,380 IN-SUBSTANCE DEFEASED DEBT (1 4 ) $ 138,223 $ — 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (1 5 ) $ 66,136 $ — 4.50% 10/9/2028 _____________ 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, 2018, which may be different than the interest rates as of December 31, 2017 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 or a specified base rate plus an applicable margin. As of December 31, 2018, no such election had been made. 3. The C ompany has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 6 for details. 6. The maturity date may be extended twice, each time for an additional one-year term. 7. T he interest rate on the outstanding balance of the term loan was effectively fixed at 2.96%% to 3.46% per annum through the use of two interest rate swaps. See Note 6 for details. 8. T he interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 6 for details. 9. The Company has the ability to draw up to $257.0 million under its construction loan, subject to lender required submissions. This loan is also secured by the Company’s ICON and CUE properties. 10. 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. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 12. The Company owns 55% of the 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 principal payments with a balloon payment at maturity. 13. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facilit y, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details. 14. T he Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 15. This amount relates to debt due to Allianz, the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two-year term each. Current Year Activity In 2018, the outstanding borrowings on the unsecured revolving credit facility increased by $300.0 million, net of paydowns. The Company uses the unsecured revolving credit facility to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes. On February 1, 2018, the Company paid in full the debt secured by its Rincon Center property, which was due to mature in May 2018. On March 13, 2018, the operating partnership entered into the amended and restated credit agreement with various financial institutions. The amended and restated credit agreement modifies the operating partnership’s unsecured revolving credit facility and its term loans as discussed under the Term Loan and Credit Facility section below. On August 31, 2018, a trust subsidiary of the consolidated joint venture that owns the One Westside and 10850 Pico properties purchased $149.2 million of U.S. Government securities and assumed $139.0 million of debt. The securities are intended to generate cash flows to fund loan obligations through the early prepayment date of the loan. This transaction does not qualify as an extinguishment of debt, since the Company will be responsible if there is a shortfall in the assets deposited into the trust. On October 9, 2018, the Company acquired the Ferry Building property through a consolidated joint venture. The Company's joint venture partner loaned $66.1 million to the joint venture to purchase the asset. 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. The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of December 31, 2018: For the Year Ended December 31, Unsecured and Secured Debt In-Substance Defeased Debt Joint Venture Partner Debt 2019 $ 5,569 $ 3,193 $ — 2020 440,095 3,323 — 2021 632 3,494 — 2022 900,085 128,213 — 2023 160,000 — — Thereafter 1,134,000 — 66,136 TOTAL $ 2,640,381 $ 138,223 $ 66,136 Unsecured debt 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% and an effective interest rate of 3.97%. The notes are fully and unconditionally guaranteed by the Company. Term Loan Agreement and Credit Facility On March 13, 2018, the operating partnership entered into a third amended and restated credit agreement (the “Amended and Restated Credit Agreement”) with various financial institutions. The Amended and Restated Credit Agreement amends, restates and replaces (i) the operating partnership’s existing second amended and restated credit agreement, entered into on March 31, 2015, which governed its $400.0 million unsecured revolving credit facility, $300.0 million unsecured 5-year term loan facility and $350.0 million unsecured 7-year term loan facility, and (ii) the operating partnership’s term loan credit agreement, entered into on November 17, 2015, which governed its $75.0 million unsecured 5-year term loan facility and $125.0 million unsecured 7-year term loan facility. The Amended and Restated Credit Agreement provides for (i) the increase of the operating partnership’s unsecured revolving credit facility to $600.0 million and the extension of the term to March 13, 2022 and (ii) term loans in amount and tenor equal to the term loans outstanding under the previous agreements ($300.0 million term loan A maturing April 1, 2020, $350.0 million term loan B maturing April 1, 2022, $75.0 million term loan C maturing November 17, 2020 and $125.0 million term loan D maturing November 17, 2022). The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: December 31, 2018 December 31, 2017 Outstanding borrowings $ 400,000 $ 100,000 Remaining borrowing capacity 200,000 300,000 TOTAL BORROWING CAPACITY $ 600,000 $ 400,000 Interest rate (1) (2) LIBOR + 1.05% to 1.50% LIBOR + 1.15% to 1.85% Annual facility fee rate ( 1 ) 0.15% or 0.30% 0.20% or 0.35% Contractual maturity date (3) 3/13/2022 4/1/2019 _________________ 1. The rate is based on the operating partnership’s leverage ratio. 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, 2018, no such election had been made. 2. The Company has the option to make a n irrevocable election to change the interest rate depending on the Company’s specified base rate plus an applicable margin. As of December 31, 2018, no such election had been made. 3. The maturity date may be extended once for an additional one Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement so long as the aggregate commitments do not exceed $2.0 billion. 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. Note Purchase Agreements On November 16, 2015, the operating partnership entered into a note purchase agreement with various purchasers, which provides for $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”). On July 6, 2016, the Company entered into a note purchase agreement 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 note purchase agreement of 3.66% guaranteed senior notes due September 15, 2023 (the “Series E Notes”), which were drawn on September 15, 2016. The operating partnership may prepay at any time all or, from time to time, any part of the note purchase agreements in an amount not less than 5% of the aggregate principal amount of any series of note purchase agreements 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 note purchase agreements 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 its unsecured loan arrangements 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 related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Total liabilities to total asset value ≤ 60% Unsecured indebtedness to unencumbered asset value ≤ 60% Adjusted EBITDA to fixed charges ≥ 1.5x Secured indebtedness to total asset value ≤ 45% Unencumbered NOI to unsecured interest expense ≥ 2.0x The following table summarizes existing covenants and their covenant levels related to our registered senior notes: Covenant Ratio Covenant Level Debt to total assets ≤ 60% Total unencumbered assets to unsecured debt ≥ 150% Consolidated income available for debt service to annual debt service charge ≥ 1.5x Secured debt to total assets ≤ 45% The operating partnership was in compliance with its financial covenants as of December 31, 2018. 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, 2018, 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, 2018 2017 2016 Gross interest expense (1) $ 92,017 $ 94,660 $ 82,887 Capitalized interest (14,815) (10,655) (11,307) Amortization of deferred financing costs and loan discount, net 5,965 6,032 4,464 INTEREST EXPENSE $ 83,167 $ 90,037 $ 76,044 _________________ 1. Includes interest on the Company’s debt and hedging activities and loan extinguishment costs of $421 thousand and $1.1 million during the years ended December 31, 2018 and 2017, respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. The Company had six interest rate swaps with aggregate notional amounts of $839.5 million as of December 31, 2018 and 2017. These derivatives were designated as effective cash flow hedges for accounting purposes. There is no impact on the Company’s Consolidated Statements of Cash Flows. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. 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. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2018 and December 31, 2017: Underlying Debt Instrument # Hedges Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value Asset/(Liabilities) Low High 2018 2017 Met Park North 1 64,500 August 2013 August 2020 3.71 % 3.71 % $ 350 $ (265) Term loan A (2) 2 300,000 July 2016 April 2020 2.65 % 3.06 % 4,038 3,520 Term loan B (3) 2 350,000 April 2015 April 2022 2.96 % 3.46 % 7,543 4,960 Term loan D (4) 1 125,000 June 2016 November 2022 2.63 % 3.13 % 4,756 4,106 TOTAL 6 $ 839,500 $ 16,687 $ 12,321 _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio as of December 31, 2018. 2. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 2.75% to 3.65%. 3. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.36% to 4.31%. 4. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.03% to 3.98%. On January 1, 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). As a result of the adoption, the Company is no longer recognizing unrealized gains or losses related to ineffective portions of its derivatives. The Company recognized a $231 thousand cumulative-effect adjustment to other comprehensive income, with a corresponding adjustment to the opening balance of retained earnings (accumulated deficit). The Company recognized an unrealized loss of $70 thousand and $1.4 million during the years ended December 31, 2017 and 2016, respectively, reflected in the unrealized loss on ineffective portion of derivatives line item on the Consolidated Statements of Operations. The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of December 31, 2018, the Company expects $7.9 million of unrealized gain included in accumulated other comprehensive income will be reclassified as a reduction to interest expense in the next 12 months. |
Future Minimum Base Rents and L
Future Minimum Base Rents and Lease Payments | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Future Minimum Base Rents and Lease Payments | Future Minimum Base Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2019 to 2034. 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, 2018: Year ended Non-cancellable Subject to early termination options Total (1) 2019 $ 524,376 $ 5,610 $ 529,986 2020 503,957 14,744 518,701 2021 481,430 25,058 506,488 2022 425,034 39,451 464,485 2023 373,786 41,363 415,149 Thereafter 1,360,511 71,212 1,431,723 TOTAL $ 3,669,094 $ 197,438 $ 3,866,532 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. 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, 2018: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement which expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. The minimum annual rent cannot be less than a set amount. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. 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, 2018 2017 2016 Contingent rental expense $ 10,740 $ 8,775 $ 8,651 Minimum rental expense $ 15,906 $ 12,412 $ 12,085 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, 2018: For the Year Ended December 31, Ground Leases (1) 2019 $ 17,137 2020 17,137 2021 17,137 2022 17,137 2023 17,215 Thereafter 485,607 TOTAL $ 571,370 _____________ 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, 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 16,687 $ — $ 16,687 $ — $ 12,586 $ — $ 12,586 Derivative liabilities (2) $ — $ — $ — $ — $ — $ 265 $ — $ 265 Non-real estate investment (1)( 3 ) $ — $ 2,713 $ — $ 2,713 $ — $ — $ — $ — _____________ 1. Included in the prepaid expenses and other assets , net line item in the Consolidated Balance Sheets. 2. Included in the account s payable, accrued liabilities and other line item on the Consolidated Balance Sheets. 3. Related to our investment in shares in a non-public company. Purs uant to our adoption of ASU 2016-01 during 2018, the Company marked the investment to fair value during the second quarter of 2018. The investment was not fair valued in 2017 and was accounted for under the cost method. 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 value for investment in U.S. Government securities are estimates based on Level 1 inputs. Fair values for debt 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 investment in securities and debt as of: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ 146,880 $ 147,686 $ — $ — Liabilities Unsecured debt (1)(2) $ 2,274,352 $ 2,227,265 $ 1,974,278 $ 1,960,560 Secured debt ( 1 ) $ 365,381 $ 354,109 $ 464,311 $ 458,441 In-substance defeased debt $ 138,223 $ 135,894 $ — $ — Joint venture partner debt $ 66,136 $ 66,136 $ — $ — _____________ 1. Amounts represent debt excluding net deferred financing costs. 2. The $400.0 million registered senior notes were issued at a discount. The discount, net of amortization was $648 thousand and $722 thousand at December 31, 2018 and December 31, 2017, respectively, and is included within unsecured debt. The following table summarizes the carrying value and fair value of our U.S. Government securities by the contractual maturity date: Carrying Value Fair Value Due in 1 year $ 6,175 $ 6,187 Due in 1 year through 5 years 140,705 141,499 TOTAL $ 146,880 $ 147,686 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
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, operating partnership performance units and performance-based awards. As of December 31, 2018, 2.5 million 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 operating partnership performance units, 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 $29.06. 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 or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the fourth quarter, and vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer. The compensation committee of our Board (the “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 2016, 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 50% 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. Commencing with our 2017 OPP Plan, the two-year post performance vesting period was replaced with a two-year mandatory holding period upon vesting. In February 2018, the Compensation Committee adopted the 2018 OPP Plan. The 2018 OPP Plan is substantially similar to the previous OPP Plans except for (i) the performance period is January 1, 2018 to December 31, 2020, (ii) the maximum bonus pool is $25.0 million, (iii) the relative comparison index is the SNL US Office REIT index, (iv) the absolute TSR hurdle will be 21% (or 7% per annum) and (v) adjusted the sliding scale low return factor so that relative TSR pool can only be reduced by 75% under this feature. 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 2018 and 2017 OPP Plans: 2018 OPP Plan 2017 OPP Plan Maximum bonus pool, in millions $25.0 $20.0 Performance period 1/1/2018 to 12/31/2020 1/1/2017 to 12/31/2019 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: 2018 2017 2016 Expected price volatility for the Company 20.00% 24.00% 24.00% Expected price volatility for the particular REIT index 18.00% 17.00% 17.00% Risk-free rate 2.37% 1.47% 1.09% Dividend yield 2.90% 2.30% 2.40% 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 stock awards: 2018 2017 2016 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 1,087,186 $ 33.64 887,179 $ 31.09 827,950 $ 28.92 Granted 190,557 29.53 918,884 34.37 489,826 30.95 Vested (571,481) 32.74 (705,508) 31.42 (430,597) 26.75 Canceled (2,466) 33.38 (13,369) 32.14 — — Unvested at December 31 703,796 $ 32.93 1,087,186 $ 33.64 887,179 $ 31.09 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2018 190,557 $ 29.53 (571,481) $ 16,735 2017 918,884 34.37 (705,508) 24,155 2016 489,826 30.95 (430,597) 14,736 During 2018, the Company granted 318,549 time-based restricted operating partnership performance units with a weighted-average grant-date fair value of $28.41. There have been no other operating partnership performance units granted, vested or canceled. 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, 2018 2017 2016 Expensed stock compensation (1) $ 17,028 $ 15,079 $ 14,144 Capitalized stock compensation (2) 1,097 836 510 Total stock compensation (3) $ 18,125 $ 15,915 $ 14,654 _________________ 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
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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 available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company 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 restricted stock awards and unvested OPP RSUs 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 available to common stockholders: For the Year Ended December 31, 2018 2017 2016 Numerator: Basic net income available to common stockholders $ 98,090 $ 67,587 $ 27,218 Effect of dilutive instruments — — 451 Diluted net income available to common stockholders $ 98,090 $ 67,587 $ 27,669 Denominator: Basic weighted average common shares outstanding 155,445,247 153,488,730 106,188,902 Effect of dilutive instruments (1) 251,239 394,084 4,180,153 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 155,696,486 153,882,814 110,369,055 Basic earnings per common share $ 0.63 $ 0.44 $ 0.26 Diluted earnings per common share $ 0.63 $ 0.44 $ 0.25 _____________ 1. The Company includes unvested awards and convertible common and participating 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 Company 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 Company 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 restricted stock awards, unvested time-based performance unit awards and unvested OPP RSUs 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 Company’s basic and diluted earnings per unit for net income available to common unitholders: For the Year Ended December 31, 2018 2017 2016 Numerator: Basic and diluted net income available to common unitholders $ 98,448 $ 67,962 $ 33,066 Effective of dilutive instruments — — 451 Diluted net income available to common unitholders $ 98,448 $ 67,962 $ 33,517 Denominator: Basic weighted average common units outstanding 156,014,292 154,276,773 145,595,246 Effect of dilutive instruments (1) 251,239 394,084 1,144,000 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 156,265,531 154,670,857 146,739,246 Basic earnings per common unit $ 0.63 $ 0.44 $ 0.23 Diluted earnings per common unit $ 0.63 $ 0.44 $ 0.23 _____________ 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. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest Redeemable preferred units of the operating partnership As of December 31, 2018, there were 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. On April 16, 2018, 14,468 series A preferred units of partnership interest were redeemed for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends to, but not including, the date of redemption. 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. Redeemable non-controlling interest in consolidated real estate entities The Company has a 75% interest in the joint venture that owns the One Westside and 10850 Pico properties. The Company has a put right, after a specified time, to sell its interest at fair market value. Macerich has a put right to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. The Company has a 55% interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. Allianz has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2017 $ 10,177 $ — Contributions — 112,972 Declared dividend (618) — Net income 618 169 Redemption of preferred units (362) — BALANCE AT DECEMBER 31, 2018 $ 9,815 $ 113,141 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 $ (1,081) $ 1,017 $ (64) Unrealized loss (gain) recognized in OCI 4,122 (6,989) (2,867) Loss reclassified from OCI into income (1) 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 3,011 18 3,029 Loss reclassified from OCI into income (1) 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 Unrealized gain recognized in OCI 7,331 27 7,358 Gain reclassified from OCI into income (1) (3,287) (13) (3,300) Net change in OCI 4,044 14 4,058 Cumulative adjustment related to adoption of ASU 2017-12 230 1 231 BALANCE AT DECEMBER 31, 2018 $ 17,501 $ 64 $ 17,565 _____________ 1. The gains and losses on the Company’s derivatives are reported in the interest expense line item on the Consolidated Statements of Operations. Interest expense was $83.2 million, $90.0 million and $76.0 million for the years ended December 31, 2018, December 31, 2017 and December 31, 2016, respectively. 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, 2018 December 31, 2017 December 31, 2016 Company-owned common units in the operating partnership 154,371,538 155,602,508 136,492,235 Company’s ownership interest percentage 99.6 % 99.6 % 93.5 % Non-controlling common units in the operating partnership (1) 569,045 569,045 9,450,620 Non-controlling ownership interest percentage (1) 0.4 % 0.4 % 6.5 % _____________ 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 common unit redemptions in 2016 and 2017: Redemption Date Common Units May 16, 2016 10,117,223 July 21, 2016 19,195,373 November 28, 2016 17,533,099 January 10, 2017 8,881,575 For each of the redemptions above, 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. Common Stock Activity The Company has not completed any common stock offerings in 2018. The following table summarizes the common stock offerings in 2016 and 2017: Offering Date Common Shares May 16, 2016 (1) 10,117,223 July 21, 2016 (1) 19,195,373 November 28, 2016 (1) 17,533,099 January 10, 2017 (1) 8,881,575 March 3, 2017 (2) 9,775,000 _________________ 1. Proceeds from the offering were used to repurchase common units in the operating partnership. 2. 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. A cumulative total of $20.1 million has been sold as of December 31, 2018. The following table summarizes the ATM activity: 2018 2017 2016 Shares of common stock sold during the period — — 165,000 Common stock price ranges N/A N/A $33.54 to $33.95 Share repurchase program On March 8, 2018, the Board increased the authorized share repurchase program to a total of $250.0 million. In November 2018, the Company repurchased 1.6 million shares for a weighted average price of $30.48 per share for $50.0 million. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors. Dividends The Board declared dividends on a quarterly basis and the Company paid the dividends during the quarters in which the dividends were declared. The following table summarizes dividends declared and paid for the periods presented: For the Year Ended December 31, 2018 2017 2016 Common stock (1) $ 1.00 $ 1.00 $ 0.80 Common units (1) $ 1.00 $ 1.00 $ 0.80 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 _________________ 1. The fourth quarter 2018 dividends were paid on December 27, 2018 to shareholders and unitholders of record on December 17, 2018. 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 (1) Qualified Capital Gain Distributions ( 2 ) Return of Capital 3/19/2018 3/29/2018 $ 0.25000 $ 0.15113 $ 0.15113 $ — $ 0.07595 $ 0.02292 6/19/2018 6/29/2018 0.25000 0.15113 0.15113 — 0.07595 0.02292 9/18/2018 9/28/2017 0.25000 0.15113 0.15113 — 0.07595 0.02292 12/17/2018 12/27/2018 0.25000 0.15113 0.15113 — 0.07595 0.02292 TOTALS $ 1.00000 $ 0.60452 $ 0.60452 $ — $ 0.30380 $ 0.09168 100.00 % 60.45 % 30.38 % 9.17 % _____________ 1. On December 22, 2017, the Tax Cuts and Jobs Act enacted Section 199A that generally allows a deduction for non-corporate taxpayers equal to 20% of ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income). Ordinary dividends eligible for the Section 199A benefit are a subset of, and included in, the taxable ordinary dividend amount. All of the non-qualified dividends listed above are eligible for the Section 199A benefit. 2. $0.02240 of the $0.07595 capital gain distributions should be characterized as unrecaptured Section 1250 gain. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe 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) studio properties. The Company evaluates performance based upon net operating income of the combined properties in each segment. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources, therefore, depreciation and amortization expense is not allocated among segments. The table below presents the operating activity of our reportable segments: Year Ended December 31, 2018 2017 2016 Office segment Total office revenues $ 652,517 $ 667,110 $ 593,236 Office expenses (226,820) (218,873) (202,935) Office segment profit 425,697 448,237 390,301 Studio segment Total studio revenues 75,901 61,029 46,403 Studio expenses (40,890) (34,634) (25,810) Studio segment profit 35,011 26,395 20,593 TOTAL SEGMENT PROFIT $ 460,708 $ 474,632 $ 410,894 Total revenues $ 728,418 $ 728,139 $ 639,639 Total segment expenses (267,710) (253,507) (228,745) TOTAL SEGMENT PROFIT $ 460,708 $ 474,632 $ 410,894 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Year Ended December 31, 2018 2017 2016 Total profit from all segments $ 460,708 $ 474,632 $ 410,894 General and administrative (61,027) (54,459) (52,400) Depreciation and amortization (251,003) (283,570) (269,087) Interest expense (83,167) (90,037) (76,044) Interest income 1,718 97 260 Unrealized gain on non-real estate investment 928 — — Unrealized gain on ineffective portion of derivative instrument — (70) (1,436) Transaction-related expenses (535) (598) (376) Other income 822 2,992 1,558 Gains on sale of real estate 43,337 45,574 30,389 Net income 111,781 94,561 43,758 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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 42,370 square feet and to extend the term by an additional 3 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. Ferry Building Acquisition from Certain Affiliates of Blackstone On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building from certain affiliates of Blackstone for $291.0 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 debt. 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 for $51.8 million, before credits, prorations and closing costs. 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 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. 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On October 5, 2018, the Company entered into an agreement to invest in a real estate technology venture capital fund. The Company is committed to funding up to $20.0 million. The Company has not yet contributed to the fund. 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, 2018, 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, 2018, the Company’s office properties were located in Northern and Southern California and the Pacific Northwest. The Company’s studio properties were located in Hollywood in Southern California. 90.1% 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, 2018, approximately 19.6% and 30.2% of rentable square feet were related to the tenants in the media and entertainment and technology industries, respectively. As of December 31, 2018, the Company’s 15 largest tenants represented approximately 29.1% of its rentable square feet and no single tenant accounted for more than 10%. As of December 31, 2018, no single tenant in the Company’s office and studio segments had rental revenues representing more than 10% of the segment’s total revenue. Letters of Credit |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information is included as follows: Year Ended December 31, 2018 2017 2016 Cash paid for interest, net of capitalized interest 78,495 77,234 82,491 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments (13,431) (19,587) (37,364) Reclassification of investment in unconsolidated entities for real estate investments — 7,835 — Assumption of debt in connection with property acquisitions 139,003 — — Redeemable non-controlling interest in consolidated real estate entities 12,749 — — Relief of debt in conjunction with sale of real estate — (216,000) — Proceeds from sale of real estate — 216,000 — |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The tables below present selected quarterly information for 2018 and 2017 for the Company: For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income attributable to the Company’s stockholders $ 15,944 $ 17,367 $ 16,202 $ 48,577 Net income attributable to common stockholders’ per share—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income attributable to common stockholders’ per share— diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 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 Total operating expenses $ (145,501) $ (153,861) $ (152,392) $ (139,782) 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 _____________ 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 Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Hudson Pacific Properties, Inc. 2019 Outperformance Program On February 12, 2019, the Compensation Committee adopted the 2019 Outperformance Program (“2019 OPP”) under the 2010 Plan. The 2019 OPP authorizes grants of incentive awards linked to the absolute and relative TSR over the performance period beginning on January 1, 2019 and ending on the earlier to occur of December 31, 2021 or the date on which the Company experience a change in control. Each 2019 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 2019 OPP, the Compensation Committee granted Victor J. Coleman, Mark T. Lammas, Alex Vouvalides, Christopher Barton and Josh Hatfield, each of whom is a named executive officer, OPP awards of 24%, 13.75%, 9.15%, 6.4% and 6.4% respectively. The awards for each were granted in the form of performance units. Under the 2019 OPP, a bonus pool of up to (but not exceeding) $28.0 million will be determined at the end of the performance period as the sum of: (i) 3% of the amount by which the TSR during the performance period exceeds 7% simple annual TSR (the absolute TSR component), plus (ii) 3% of the amount by which the 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 the Company 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 $3.971 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 the Company 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-transfer) period. However, if the performance period is terminated prior to December 31, 2021 in connection with a change in control, 2019 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 2019 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 2019 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. |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Schedule III — Real Estate and Accumulated Depreciation December 31, 2018 (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 ( 1 ) Year Built / Renovated Year Acquired Office 875 Howard, San Francisco Bay Area, CA $ — $ 18,058 $ 41,046 $ 20,353 $ 1,936 $ 18,058 $ 63,335 $ 81,393 $ (17,001) Various 2007 6040 Sunset, Los Angeles, CA — 6,599 27,187 25,032 3,088 6,599 55,307 61,906 (21,694) 2008 2008 ICON, Los Angeles, CA — — — 145,136 5,497 — 150,633 150,633 (10,677) 2017 2008 CUE, Los Angeles, CA — — — 43,708 1,716 — 45,424 45,424 (1,477) Ongoing 2008 EPIC, Los Angeles, CA — — — 84,887 3,156 — 88,043 88,043 — Ongoing 2008 Del Amo, Los Angeles, CA — — 18,000 2,513 — — 20,513 20,513 (5,521) 1986 2010 1455 Market, San Francisco Bay Area, CA — 41,226 34,990 87,437 298 41,226 122,725 163,951 (32,494) 1976 2010 Rincon Center, San Francisco Bay Area, CA ( 2 )( 3 ) — 58,251 110,656 35,151 — 58,251 145,807 204,058 (29,856) 1940/1989 2010 10950 Washington, Los Angeles, CA ( 3 ) 26,880 17,979 25,110 1,408 — 17,979 26,518 44,497 (5,879) 1957/1974 2010 604 Arizona, Los Angeles, CA — 5,620 14,745 3,895 484 5,620 19,124 24,744 (3,263) 1950/2005 2011 275 Brannan, San Francisco Bay Area, CA — 4,187 8,063 14,029 1,115 4,187 23,207 27,394 (7,732) 1905 2011 625 Second, San Francisco Bay Area, CA — 10,744 42,650 2,790 — 10,744 45,440 56,184 (9,244) 1906/1999 2011 6922 Hollywood, Los Angeles, CA — 16,608 72,392 15,784 — 16,608 88,176 104,784 (15,347) 1967 2011 10900 Washington, Los Angeles, CA — 1,400 1,200 736 — 1,400 1,936 3,336 (812) 1973 2012 901 Market, San Francisco Bay Area, CA — 17,882 79,305 15,929 — 17,882 95,234 113,116 (18,353) 1912/1985 2012 Element LA, Los Angeles, CA ( 3 ) 168,000 79,769 19,755 85,432 10,391 79,769 115,578 195,347 (13,949) 1949 2012, 2013 3401 Exposition, Los Angeles, CA — 14,120 11,319 11,044 1,028 14,120 23,391 37,511 (3,789) 1961 2013 505 First, Greater Seattle, WA — 22,917 133,034 4,383 — 22,917 137,417 160,334 (22,173) Various 2013 83 King, Greater Seattle, WA — 12,982 51,403 7,634 — 12,982 59,037 72,019 (9,972) Various 2013 Met Park North, Greater Seattle, WA ( 3 ) 64,500 28,996 71,768 730 — 28,996 72,498 101,494 (12,357) 2000 2013 Northview Center, Greater Seattle, WA — 4,803 41,191 1,945 — 4,803 43,136 47,939 (7,379) 1991 2013 411 First, Greater Seattle, WA — 27,684 29,824 15,462 — 27,684 45,286 72,970 (7,552) Various 2014 450 Alaskan, Greater Seattle, WA — — — 81,250 3,391 — 84,641 84,641 (2,522) Various 2014 95 Jackson, Greater Seattle, WA — — — 16,738 1,102 — 17,840 17,840 (799) Various 2014 Palo Alto Square, San Francisco Bay Area, CA — — 326,033 31,399 — — 357,432 357,432 (45,678) 1971 2015 3400 Hillview, San Francisco Bay Area, CA — — 159,641 2,514 — — 162,155 162,155 (27,367) 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 ( 1 ) Year Built / Renovated Year Acquired Foothill Research Center, San Francisco Bay Area, CA — — 133,994 2,349 — — 136,343 136,343 (22,236) 1991 2015 Page Mill Center, San Francisco Bay Area, CA — — 147,625 6,927 — — 154,552 154,552 (26,855) 1970/2016 2015 Clocktower Square, San Francisco Bay Area, CA — — 93,949 3,369 — — 97,318 97,318 (9,295) 1983 2015 3176 Porter, San Francisco Bay Area, CA — — 34,561 676 — — 35,237 35,237 (5,195) 1991 2015 Towers at Shore Center, San Francisco Bay Area, CA — 72,673 144,188 12,825 — 72,673 157,013 229,686 (18,271) 2001 2015 Skyway Landing, San Francisco Bay Area, CA — 37,959 63,559 3,818 — 37,959 67,377 105,336 (8,662) 2001 2015 Shorebreeze, San Francisco Bay Area, CA — 69,448 59,806 12,145 — 69,448 71,951 141,399 (8,870) 1985/1989 2015 555 Twin Dolphin, San Francisco Bay Area, CA — 40,614 73,457 5,960 — 40,614 79,417 120,031 (9,064) 1989 2015 333 Twin Dolphin, San Francisco Bay Area, CA — 36,441 64,892 11,500 — 36,441 76,392 112,833 (9,089) 1985 2015 Metro Center, San Francisco Bay Area, CA — — 313,683 50,740 — — 364,423 364,423 (43,568) Various 2015 Concourse, San Francisco Bay Area, CA — 45,085 224,271 22,919 — 45,085 247,190 292,275 (31,641) Various 2015 Gateway, San Francisco Bay Area, CA — 33,117 121,217 39,312 — 33,117 160,529 193,646 (20,863) Various 2015 Metro Plaza, San Francisco Bay Area, CA — 16,038 106,156 18,254 — 16,038 124,410 140,448 (13,789) 1986 2015 1740 Technology, San Francisco Bay Area, CA — 8,052 49,486 2,391 — 8,052 51,877 59,929 (5,549) 1985 2015 Skyport Plaza, San Francisco Bay Area, CA — 16,521 153,844 (3,226) — 16,521 150,618 167,139 (14,540) 2000/2001 2015 Cloud10, San Francisco Bay Area, CA 12,512 — 77 177 12,512 254 12,766 — N/A 2015 Techmart, San Francisco Bay Area, CA — — 66,660 16,143 — — 82,803 82,803 (11,525) 1986 2015 Campus Center, San Francisco Bay Area, CA — 29,636 79,604 12,118 4,158 29,636 95,880 125,516 (5,916) N/A 2015 Campus Center—Development, San Francisco Bay Area, CA 29,824 — 513 — 29,824 513 30,337 — N/A 2015 Fourth & Traction, Los Angeles, CA — 12,140 37,110 42,248 7,881 12,140 87,239 99,379 (1,642) Various 2015 Maxwell, Los Angeles, CA — 13,040 26,960 35,259 6,365 13,040 68,584 81,624 — Various 2015 11601 Wilshire, Los Angeles, CA — 28,978 321,273 33,293 — 28,978 354,566 383,544 (26,049) 1983 2016, 2017 Hill7, Greater Seattle, WA ( 3 ) 101,000 36,888 137,079 16,540 — 36,888 153,619 190,507 (10,756) 2015 2016 Page Mill Hill, San Francisco Bay Area, CA — — 131,402 5,996 — — 137,398 137,398 (9,904) 1975 2016 Harlow, Los Angeles, CA — — — 23,794 741 — 24,535 24,535 — N/A 2017 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 ( 1 ) Year Built / Renovated Year Acquired One Westside, Los Angeles, CA ( 4 ) — 110,438 35,011 8,224 1,019 110,438 44,254 154,692 (680) 1985 2018 10850 Pico, Los Angeles, CA ( 4 ) — 34,682 16,313 (2,604) — 34,682 13,709 48,391 (243) 1985 2018 Ferry Building, San Francisco Bay Area, CA (5) — — 268,292 2,066 — — 270,358 270,358 (2,230) 1898/2003 2018 Studio Sunset Gower Studios, Los Angeles, CA ( 6 ) 5,001 79,320 64,697 35,709 342 79,320 100,748 180,068 (26,646) Various 2007, 2011, 2012 Sunset Bronson Studios, Los Angeles, CA ( 6 ) — 77,698 32,374 28,831 422 77,698 61,627 139,325 (14,275) Various 2008 Sunset Las Palmas Studios, Los Angeles, CA — 141,943 104,392 1,706 — 141,943 106,098 248,041 (5,391) Various 2017, 2018 TOTAL $ 365,381 $ 1,372,872 $ 4,425,167 $ 1,207,191 $ 54,307 $ 1,372,872 $ 5,686,665 $ 7,059,537 $ (695,631) _____________ 1. 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. 2. The loan was paid in full on February 1, 2018. 3. These properties are encumbered under our unsecured revolving credit facility, which, as of December 31, 2018, had an outstanding balance of $400.0 million. 4. These properties have $138.2 million debt secured by U.S. Government securities. See description of the in-substance defeased debt in Part IV, Item 15(a) “Financial Statement and Schedules—Note 5 to the Consolidated Financial Statements-Debt.” 5. This property has $66.1 million due to our joint venture partner. See description of joint venture partner debt in Part IV, Item 15(a) “Financial Statement and Schedules—Note 5 to the Consolidated Financial Statements-Debt.” 6. The encumbrance amount relates to both Sunset Gower Studios and Sunset Bronson Studios. See description of secured and unsecured debt in Part IV, Item 15(a) “Financial Statement and Schedules—Note 5 to the Consolidated Financial Statements-Debt.” The aggregate gross cost of property included above for federal income tax purposes approximated $6.5 billion, unaudited as of December 31, 2018. The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2016 to December 31, 2018: Year Ended December 31, 2018 2017 2016 Total investment in real estate, beginning of year $ 6,644,249 $ 6,507,484 $ 5,976,526 Additions during period: Acquisitions 505,257 255,848 597,751 Improvements, capitalized costs 364,721 330,809 296,399 Total additions during period 869,978 586,657 894,150 Deductions during period Disposal (fully depreciated assets and early terminations) (27,821) (41,337) (27,451) Cost of property sold (426,869) (408,555) (335,741) Total deductions during period (454,690) (449,892) (363,192) Ending balance, before reclassification to assets associated with real estate held for sale 7,059,537 6,644,249 6,507,484 Reclassification to assets associated with real estate held for sale — (424,888) (629,004) Total investment in real estate, end of year $ 7,059,537 $ 6,219,361 $ 5,878,480 Total accumulated depreciation, beginning of year $ (549,411) $ (423,950) $ (272,724) Additions during period: Depreciation of real estate (203,347) (206,838) (182,219) Total additions during period (203,347) (206,838) (182,219) Deductions during period: Deletions 27,410 37,925 25,622 Write-offs due to sale 29,717 43,452 5,371 Total deductions during period 57,127 81,377 30,993 Ending balance, before reclassification to assets associated with real estate held for sale (695,631) (549,411) (423,950) Reclassification to assets associated with real estate held for sale — 28,041 48,743 Total accumulated depreciation, end of year $ (695,631) $ (521,370) $ (375,207) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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, the Company first evaluates 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 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, 2018, the Company has determined that five joint ventures and our operating partnership met the definition of a VIE. Four of the joint ventures are consolidated entities and one joint venture is a non-consolidated entity. Consolidated Entities As of December 31, 2018, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico (collectively, formerly known as Westside Pavilion) 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC (“HPP-MAC JV”). On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The HPP-MAC JV is held 75% by the Company and 25% by Macerich, with the Company serving as the managing member and developer. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. On October 9, 2018, the Company entered into a joint venture with Allianz U.S. Private REIT LP (“Allianz”) to purchase the Ferry Building property. The Company owns 55% of the joint venture. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. As of December 31, 2018 and 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 Entity As of December 31, 2018, the Company has determined it is not the primary beneficiary of one joint venture that met the definition of a VIE. 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 share of net income or loss from the entity is included within other income on the Consolidated Statements of Operations. The Company’s net equity investment of the non-consolidated entities of $86 thousand and $14.2 million for the years ended December 31, 2018 and 2017, respectively, is reflected within prepaid expenses and other assets on the Consolidated Balance Sheets, which represents the Company’s maximum exposure for loss. |
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 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 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 term plus the extended below-market 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 commissions, legal and other leasing related costs. The fair value debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity, which includes internal direct compensation costs. Costs associated with development and redevelopment that are capitalized include 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. |
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 all 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 |
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. |
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. |
U.S. Government Securities | The Company holds U.S. Government securities related to assumed debt held by a trust subsidiary. These securities are considered held to maturity investments and are carried at amortized cost on the Consolidated Balance Sheets. The Company does not intend to sell the investments and it is not more likely than not that the company will be required to sell the investments before recovery of their amortized cost bases, which may be at maturity. |
Revenue Recognition | The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) guest parking revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must take parking revenues Office segment: tenant recoveries and parking and other Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: other property-related revenue Guest parking revenues Parking revenue that is not associated with lease agreements Office segment: parking and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Currently, rental revenues are accounted for under ASC 840, Leases (“ASC 840”). 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. Currently, tenant recoveries are accounted for under ASC 840. 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. Rental revenues and tenant recoveries and other tenant-related revenues will be accounted for under ASC 842, Leases (“ASC 842”), which the Company will adopt on January 1, 2019. The Company elected the practical expedient to classify tenant recoveries as a single lease component and account for tenant recoveries with rental revenues in the Consolidated Statement of Operations. Please refer to our Update on ASC 842 implementation section below for details. Ancillary revenues and guest parking revenues have been accounted for under ASC 606 since the Company adopted this standard on January 1, 2018. This standard requires the Company to recognize revenues based on a five-step model and results in the consideration being recognized once all performance obligations are satisfied. The entity satisfies its performance obligations all at once upon completion of services. The timing and pattern of revenue recognition as it relates to ancillary revenues and guest parking revenues have not changed from those under ASC 605, Revenue Recognition. As of December 31, 2018, the Company recognized ancillary revenues and guest parking revenues of $23.9 million and $24.6 million, respectively. As of December 31, 2018, the Company had $3.8 million and $1.0 million of receivables related to ancillary revenues and guest parking revenues, respectively. |
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 within the respective debt 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. In 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. As a result of the adoption, the Company no longer recognizes unrealized gains or losses related to ineffective portions of derivatives 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. With the adoption of ASU 2018-07, Compensation, in 2018, share-based payments granted to non-employees are accounted for in the same manner as share-based payments granted to employees. |
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, Hill7 and Ferry Building 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 2018, 2017 or 2016. 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, 2018, 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 2014. Generally, the Company has assessed its tax positions for all open years, which include 2014 to 2017, 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 | Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of ASUs. The following ASUs were adopted by the Company in 2018: Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2018-09, Codification Improvements The amendment, among other things, clarifies when excess tax benefits should be recognized for share-based compensation awards, removes inconsistent guidance in income tax accounting for business combinations, clarifies the circumstances when derivatives may be offset, and the measurement of liability or equity-classified financial instruments when an identical asset is held as an asset, and allows portfolios of financial instruments and nonfinancial instruments accounted for as derivatives to use the portfolio exception to valuation. The Company adopted this guidance during Q2 2018 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements. ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting This amendment expands the scope of ASC 718 to include all share-based payment arrangements. It simplifies the accounting for share-based payments granted to non-employees for goods and services by aligning the accounting with the requirements for share-based payments granted to employees. The Company adopted this guidance during Q2 2018 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) The guidance no longer allows the use of cost method of accounting for equity instruments that do not have a readily determinable fair value, and companies are now required to measure equity investments at fair value through net income. Companies are permitted to elect a measurement alternative that allows for measuring equity instruments at cost, less any impairment, plus or minus changes resulting from observable price changes, adjusted as of the date that an observable transaction takes place, rather than the report date. For equity investments that do not have a readily determinable fair value, this guidance is adopted prospectively for all investments that exist as of the date of adoption. The guidance allows entities to use a prospective transition approach only for securities they elect to measure using the measurement alternative. The Company adopted this guidance during Q1 2018 using the prospective approach. The Company has elected to measure our equity instruments using the measurement alternative. Please see Note 6 for details. 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 partial 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 retained earnings as of the beginning of the fiscal year of adoption for a cash flow hedge. 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. The Company adopted this guidance during Q1 2018 using the modified retrospective approach. As a result of the adoption, the concept of ineffectiveness from an accounting perspective is eliminated. Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as a cash flow hedge will be recognized as a component in other comprehensive income. Additionally, the Company eliminated any previously recorded ineffectiveness with a cumulative effect adjustment. Please see Note 8 for details. 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. The Company adopted this guidance during Q1 2018 on a prospective basis. The adoption did not have an impact on the Consolidated Financial Statements. 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 non-customers, including partial sales. It also clarifies the de-recognition guidance for nonfinancial assets to conform with the new revenue recognition standard. Either a full or modified retrospective approach can be applied. The Company adopted this guidance during Q1 2018 using the modified retrospective approach. The Company has not had variable consideration in our sale of real estate, or partial sales of nonfinancial assets or contribution of a nonfinancial asset to form a joint venture with retained non-controlling interest. The adoption did not have an impact on the Consolidated Financial Statements. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers amended by ASU 2016-08, Revenue from Contracts with Customers—Principal versus Agent Considerations (Reporting Revenue Gross versus Net) 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. 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 or agent and the determination of the nature of each specified good or service. The guidance provides for 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. The Company adopted this guidance during Q1 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. The adoption of this ASU did not result in any changes with respect to the timing and pattern of revenue recognition. Please refer to the revenue recognition policy note above for the additional disclosures. In August 2018, the SEC adopted a Disclosure Update and Simplification release, which outlines Regulation S-X amendments to eliminate outdated or duplicative disclosure requirements. The final rule also amends the financial statement requirements to require a reconciliation of changes in stockholders’ equity and capital in the notes or as a separate statements. These amendments are effective for all filings made 30 days after the amendments are published in the Federal Register, which was on October 4, 2018. The Company has adopted these amendments for the fourth quarter of 2018 and as of December 31, 2018. The Company plans to use the new presentation for stockholders’ equity and capital in the first quarter of 2019. Update on ASC 842, Leases, implementation 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. The Company adopted this standard on January 1, 2019 and elected to use the modified retrospective transition method that must be applied for leases that exist or are entered into after January 1, 2019, with a cumulative adjustment to accumulated deficit on the effective date of the ASU. 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. ASC 842 provides transition practical expedients that must be elected together 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 that are in effect as of the date of adoption. Additionally, the guidance allows an entity to elect for a practical expedient to not assess whether an existing or expired land easement that was not previously accounted for as a lease under ASC 840 is considered in a lease under ASC 842. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The Company elected the practical expedients above. The lessor practical expedient to combine lease and non-lease components was elected only for the Company ’ s leases related to the office properties. The Company is currently in the process of finalizing its computation of the right-of-use assets and lease liabilities. Lessor Accounting ASC 842 requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. For the Company ’ s rentals at the studio properties, 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. There will be no impact to the timing of recognition of revenues. For the Company ’ s rentals at the office properties, non-lease components qualified to be combined under a single lease component presentation. For the years ended December 31, 2018, 2017 and 2016, the Company anticipates $627.4 million, $643.1 million and $572.0 million, respectively, would be combined in our Consolidated Statement of Operations under a single lease component presentation. There will be no impact to the timing of recognition of revenues. ASC 842 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 years ended December 31, 2018, 2017 and 2016, the Company capitalized $7.0 million, $8.9 million and $6.3 million, respectively. Under ASC 842, and based on our current policies and processes, these costs will be expensed as incurred. The Company is currently in the process of finalizing its computation of the write-off of previously capitalized direct and indirect leasing costs related to uncommenced leases. Lessee Accounting As of December 31, 2018, the future undiscounted minimum lease payments under the Company’s ground leases totaled $571.4 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. 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 ASC 842 which are discussed above. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses The amendments clarify that receivables arising from operating leases are not within the scope of ASC 326. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. Effective for fiscal years beginning after December The Company is currently evaluating the impact of this update. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities Indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of this update. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes The Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop requiring banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has proposed that the SOFR is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The amendment permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815. Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has material hedging contracts that are indexed to USD-LIBOR and is monitoring this activity and evaluating the related risks. ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The amendment allows for capitalizing implementation costs incurred in a hosting arrangement that is a service contract. Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted including adoption in any interim period. The Company is currently evaluating the impact of this update. ASU 2018-11, Leases (Topic 842): Targeted Improvements The amendment provides (i) a transition option to adopt ASC 842 using the modified retrospective transition provision and (ii) a practical expedient for lessors to elect a combined single lease component presentation. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company elected to use the transition method and practical expedient as described above in the Update on ASC 842 Implementation section. ASU 2018-10, Codification Improvements to Topic 842, Leases The amendments make 16 technical corrections to the lease standard, which include clarification of the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company does not expect this update to have an impact on the Consolidated Financial Statements. ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 The amendments in this update permit an entity to elect an optional transition practical expedient to not evaluate under ASC 842 land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases under ASC 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under ASC 840. Once an entity adopts ASC 842, it should apply it prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company elected the transition practical expedient for land easements. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's portfolio | 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, 2018: Segments Number of Properties Square Feet (unaudited) Office 52 13,853,401 Studio 3 1,224,403 TOTAL (1) 55 15,077,804 _________________ 1. Includes redevelopment and development properties. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2018, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico (collectively, formerly known as Westside Pavilion) 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % |
Schedule of Costs Capitalized | The Company recognized the following capitalized costs: Year Ended December 31, 2018 2017 2016 Capitalized personnel costs $ 12,233 $ 10,853 $ 9,347 Capitalized interest 14,815 10,655 11,307 |
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, 2018 2017 2016 BEGINNING OF THE 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 END OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 |
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, 2018 2017 2016 BEGINNING OF THE 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 END OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 |
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, 2018 December 31, 2017 Accounts receivable $ 16,494 $ 6,706 Allowance for doubtful accounts (2,490) (2,472) ACCOUNTS RECEIVABLE, NET (1) $ 14,004 $ 4,234 _____________ 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, 2018 December 31, 2017 Straight-line rent receivables $ 142,369 $ 106,466 Allowance for doubtful accounts — — STRAIGHT-LINE RENT RECEIVABLES, NET (1) $ 142,369 $ 106,466 _____________ |
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, 2018 December 31, 2017 Derivative assets $ 16,687 $ 12,586 Goodwill 8,754 8,754 Non-real estate investment 2,713 1,785 Investment in unconsolidated entities 86 14,240 Other 27,393 23,774 PREPAID EXPENSES AND OTHER ASSETS, NET (1) $ 55,633 $ 61,139 _____________ 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 (“FASB”) in the form of ASUs. The following ASUs were adopted by the Company in 2018: Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2018-09, Codification Improvements The amendment, among other things, clarifies when excess tax benefits should be recognized for share-based compensation awards, removes inconsistent guidance in income tax accounting for business combinations, clarifies the circumstances when derivatives may be offset, and the measurement of liability or equity-classified financial instruments when an identical asset is held as an asset, and allows portfolios of financial instruments and nonfinancial instruments accounted for as derivatives to use the portfolio exception to valuation. The Company adopted this guidance during Q2 2018 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements. ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting This amendment expands the scope of ASC 718 to include all share-based payment arrangements. It simplifies the accounting for share-based payments granted to non-employees for goods and services by aligning the accounting with the requirements for share-based payments granted to employees. The Company adopted this guidance during Q2 2018 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2018-04, Investments—Debt Securities (Topic 320) and Regulated Operations (Topic 980): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273 (SEC Update) The guidance no longer allows the use of cost method of accounting for equity instruments that do not have a readily determinable fair value, and companies are now required to measure equity investments at fair value through net income. Companies are permitted to elect a measurement alternative that allows for measuring equity instruments at cost, less any impairment, plus or minus changes resulting from observable price changes, adjusted as of the date that an observable transaction takes place, rather than the report date. For equity investments that do not have a readily determinable fair value, this guidance is adopted prospectively for all investments that exist as of the date of adoption. The guidance allows entities to use a prospective transition approach only for securities they elect to measure using the measurement alternative. The Company adopted this guidance during Q1 2018 using the prospective approach. The Company has elected to measure our equity instruments using the measurement alternative. Please see Note 6 for details. 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 partial 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 retained earnings as of the beginning of the fiscal year of adoption for a cash flow hedge. 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. The Company adopted this guidance during Q1 2018 using the modified retrospective approach. As a result of the adoption, the concept of ineffectiveness from an accounting perspective is eliminated. Subsequent changes in fair value for a hedging instrument that has been designated and qualifies as a cash flow hedge will be recognized as a component in other comprehensive income. Additionally, the Company eliminated any previously recorded ineffectiveness with a cumulative effect adjustment. Please see Note 8 for details. 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. The Company adopted this guidance during Q1 2018 on a prospective basis. The adoption did not have an impact on the Consolidated Financial Statements. 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 non-customers, including partial sales. It also clarifies the de-recognition guidance for nonfinancial assets to conform with the new revenue recognition standard. Either a full or modified retrospective approach can be applied. The Company adopted this guidance during Q1 2018 using the modified retrospective approach. The Company has not had variable consideration in our sale of real estate, or partial sales of nonfinancial assets or contribution of a nonfinancial asset to form a joint venture with retained non-controlling interest. The adoption did not have an impact on the Consolidated Financial Statements. Standard Description Effect on the Financial Statements or Other Significant Matters ASU 2014-09, Revenue from Contracts with Customers amended by ASU 2016-08, Revenue from Contracts with Customers—Principal versus Agent Considerations (Reporting Revenue Gross versus Net) 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. 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 or agent and the determination of the nature of each specified good or service. The guidance provides for 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. The Company adopted this guidance during Q1 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. The adoption of this ASU did not result in any changes with respect to the timing and pattern of revenue recognition. Please refer to the revenue recognition policy note above for the additional disclosures. In August 2018, the SEC adopted a Disclosure Update and Simplification release, which outlines Regulation S-X amendments to eliminate outdated or duplicative disclosure requirements. The final rule also amends the financial statement requirements to require a reconciliation of changes in stockholders’ equity and capital in the notes or as a separate statements. These amendments are effective for all filings made 30 days after the amendments are published in the Federal Register, which was on October 4, 2018. The Company has adopted these amendments for the fourth quarter of 2018 and as of December 31, 2018. The Company plans to use the new presentation for stockholders’ equity and capital in the first quarter of 2019. Update on ASC 842, Leases, implementation 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. The Company adopted this standard on January 1, 2019 and elected to use the modified retrospective transition method that must be applied for leases that exist or are entered into after January 1, 2019, with a cumulative adjustment to accumulated deficit on the effective date of the ASU. 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. ASC 842 provides transition practical expedients that must be elected together 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 that are in effect as of the date of adoption. Additionally, the guidance allows an entity to elect for a practical expedient to not assess whether an existing or expired land easement that was not previously accounted for as a lease under ASC 840 is considered in a lease under ASC 842. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The Company elected the practical expedients above. The lessor practical expedient to combine lease and non-lease components was elected only for the Company ’ s leases related to the office properties. The Company is currently in the process of finalizing its computation of the right-of-use assets and lease liabilities. Lessor Accounting ASC 842 requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. For the Company ’ s rentals at the studio properties, 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. There will be no impact to the timing of recognition of revenues. For the Company ’ s rentals at the office properties, non-lease components qualified to be combined under a single lease component presentation. For the years ended December 31, 2018, 2017 and 2016, the Company anticipates $627.4 million, $643.1 million and $572.0 million, respectively, would be combined in our Consolidated Statement of Operations under a single lease component presentation. There will be no impact to the timing of recognition of revenues. ASC 842 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 years ended December 31, 2018, 2017 and 2016, the Company capitalized $7.0 million, $8.9 million and $6.3 million, respectively. Under ASC 842, and based on our current policies and processes, these costs will be expensed as incurred. The Company is currently in the process of finalizing its computation of the write-off of previously capitalized direct and indirect leasing costs related to uncommenced leases. Lessee Accounting As of December 31, 2018, the future undiscounted minimum lease payments under the Company’s ground leases totaled $571.4 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. 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 ASC 842 which are discussed above. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses The amendments clarify that receivables arising from operating leases are not within the scope of ASC 326. Instead, impairment of receivables arising from operating leases should be accounted for in accordance with Topic 842, Leases. Effective for fiscal years beginning after December The Company is currently evaluating the impact of this update. ASU 2018-17, Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities Indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. Effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company is currently evaluating the impact of this update. Standard Description Effective Date Effect on the Financial Statements or Other Significant Matters ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes The Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop requiring banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee (“ARRC”) has proposed that the SOFR is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. The amendment permits use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under ASC 815. Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The Company has material hedging contracts that are indexed to USD-LIBOR and is monitoring this activity and evaluating the related risks. ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) The amendment allows for capitalizing implementation costs incurred in a hosting arrangement that is a service contract. Effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted including adoption in any interim period. The Company is currently evaluating the impact of this update. ASU 2018-11, Leases (Topic 842): Targeted Improvements The amendment provides (i) a transition option to adopt ASC 842 using the modified retrospective transition provision and (ii) a practical expedient for lessors to elect a combined single lease component presentation. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company elected to use the transition method and practical expedient as described above in the Update on ASC 842 Implementation section. ASU 2018-10, Codification Improvements to Topic 842, Leases The amendments make 16 technical corrections to the lease standard, which include clarification of the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company does not expect this update to have an impact on the Consolidated Financial Statements. ASU 2018-01, Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842 The amendments in this update permit an entity to elect an optional transition practical expedient to not evaluate under ASC 842 land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases under ASC 840. An entity that elects this practical expedient should apply the practical expedient consistently to all of its existing or expired land easements that were not previously accounted for as leases under ASC 840. Once an entity adopts ASC 842, it should apply it prospectively to all new (or modified) land easements to determine whether the arrangement should be accounted for as a lease. The effective date and transition requirements are the same as that in Update 2016-02 (Effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.) The Company elected the transition practical expedient for land easements. |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Land $ 1,372,872 $ 1,204,700 Building and improvements 4,991,770 4,389,846 Tenant improvements 510,217 397,012 Furniture and fixtures 9,320 8,576 Property under development 175,358 219,227 INVESTMENT IN REAL ESTATE, AT COST (1) $ 7,059,537 $ 6,219,361 _____________ |
Schedule of Real Estate Properties Acquired | The following table summarizes the information on the acquisitions completed in 2018: Property Submarket Segment Date of Acquisition Square Feet Purchase Price (1) (in millions) 6605 Eleanor Avenue (2) Hollywood Studio 6/7/2018 22,823 $ 18.0 1034 Seward Street (2) Hollywood Studio 6/7/2018 18,673 12.0 One Westside and 10850 Pico (3) West Los Angeles Office 8/31/2018 595,987 190.0 Ferry Building (4) San Francisco Office 10/9/2018 268,018 291.0 6660 Santa Monica (2) Hollywood Studio 10/23/2018 11,200 10.0 TOTAL ACQUISITIONS IN 2018 916,701 $ 521.0 _____________ 1. Represents purchase price before certain credits, prorations and closing costs. 2. The properties are adjacent to, and now form part of, the Sunset Las Palmas Studios property and consist of sound stages, production office and support space. 3. The Company owns 75% of the ownership interest in the consolidated joint venture that owns these properties. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. 4. The Company owns 55% of the ownership interest in the consolidated joint venture that owns this property. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. |
Asset Acquisition, Purchase Price Allocation And Consideration Summary | The following table represents the Company’s final purchase price accounting, as of the respective acquisition dates, for each of the Company’s acquisitions completed in 2018: 6605 Eleanor Avenue 1034 Seward Street One Westside and 10850 Pico Ferry Building 6660 Santa Monica Total Total consideration Cash consideration for real estate investments $ 18,071 $ 12,095 $ 40,986 $ 281,180 $ 10,355 $ 362,687 Cash consideration for U.S. Government securities — — 149,176 — — 149,176 Debt assumed — — 139,003 — — 139,003 Redeemable non-controlling interest in consolidated real estate entities — — 12,749 — — 12,749 TOTAL CONSIDERATION $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 Allocation of consideration Investment in real estate $ 18,071 $ 12,095 $ 196,444 $ 268,292 $ 10,355 $ 505,257 U.S. Government securities — — 149,176 — — 149,176 Deferred leasing costs and in-place lease intangibles ( 1 ) — — 826 17,586 — 18,412 Above-market leases (2) — — 605 742 — 1,347 Below-market ground lease ( 3 ) — — — 4,528 — 4,528 Below-market leases ( 4 ) — — (5,137) (9,968) — (15,105) TOTAL $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 _____________ 1. Represents weighted-average amortization per iod of 6.9 years (before any renewal or extension options). 2. Represents weighted-average amortization period of 5.1 years (before any renewal or extension options). 3. Represents weighted-average amortization period of 48.6 years. 4. Represents weighted-average amortization period of |
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 2018, 2017 and 2016. These properties were considered non-strategic to the Company’s portfolio: Property Date of Disposition Square Feet Sales Price (1) (in millions) Embarcadero Place 1/25/2018 197,402 $ 136.0 2600 Campus Drive (building 6 of Peninsula Office Park) 1/31/2018 63,050 22.5 2180 Sand Hill 3/1/2018 45,613 82.5 9300 Wilshire 4/10/2018 61,422 13.8 Peninsula Office Park 7/27/2018 447,739 210.0 TOTAL DISPOSITIONS IN 2018 815,226 $ 464.8 222 Kearny 2/14/2017 148,797 $ 51.8 3402 Pico 3/21/2017 50,687 35.0 Pinnacle I and Pinnacle II 11/16/2017 623,777 350.0 TOTAL DISPOSITIONS IN 2017 823,261 $ 436.8 Bayhill Office Center 1/14/2016 554,328 $ 215.0 Patrick Henry 4/7/2016 70,520 19.0 One Bay Plaza 6/1/2016 195,739 53.4 12655 Jefferson 11/4/2016 100,756 80.0 TOTAL DISPOSITIONS IN 2016 921,343 $ 367.4 _____________ 1. Represents gross sales price before certain credits, prorations and closing costs. |
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, 2018 December 31, 2017 ASSETS Investment in real estate, net $ — $ 396,846 Accounts receivable, net — 213 Straight-line rent receivables, net — 5,225 Deferred leasing costs and lease intangible assets, net — 9,589 Prepaid expenses and other assets, net — 58 ASSETS ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ — $ 411,931 LIABILITIES Accounts payable, accrued liabilities and other — 1,808 Lease intangible liabilities, net — 485 Security deposits and prepaid rent — 2,610 LIABILITIES ASSOCIATED WITH REAL ESTATE HELD FOR SALE $ — $ 4,903 |
Deferred Leasing Costs and Le_2
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 as of: December 31, 2018 December 31, 2017 Deferred leasing costs and in-place lease intangibles 336,535 301,945 Accumulated amortization (123,432) (127,703) Deferred leasing costs and in-place lease intangibles, net 213,103 174,242 Below-market ground leases 72,916 68,388 Accumulated amortization (8,932) (6,498) Below-market ground leases, net 63,984 61,890 Above-market leases 8,425 18,028 Accumulated amortization (5,616) (15,131) Above-market leases, net 2,809 2,897 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET (1) $ 279,896 $ 239,029 Below-market leases 101,736 103,597 Accumulated amortization (57,043) (55,019) Below-market leases, net 44,693 48,578 Above-market ground leases 1,095 1,095 Accumulated amortization (176) (133) Above-market ground leases, net 919 962 LEASE INTANGIBLE LIABILITIES, NET (1) $ 45,612 $ 49,540 _____________ |
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, 2018 2017 2016 Deferred leasing costs and in-place lease intangibles ( 1 ) $ (46,690) $ (72,883) $ (84,492) Below-market ground leases ( 2 ) $ (2,465) $ (2,548) $ (2,203) Above-market leases ( 3 ) $ (1,550) $ (6,953) $ (11,259) Below-market leases ( 3 ) $ 19,143 $ 25,015 $ 30,993 Above-market ground leases ( 2 ) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in revenues 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, 2018: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2019 $ (40,100) $ (2,504) $ (1,190) $ 13,296 $ 43 2020 (30,387) (2,504) (610) 10,027 43 2021 (24,099) (2,504) (428) 7,500 43 2022 (18,535) (2,504) (250) 4,877 43 2023 (15,063) (2,504) (222) 3,965 43 Thereafter (84,919) (51,464) (109) 5,028 704 TOTAL (1) $ (213,103) $ (63,984) $ (2,809) $ 44,693 $ 919 _____________ 1. Excludes balances related to properties that have been classified as held for s ale. |
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, 2018: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2019 $ (40,100) $ (2,504) $ (1,190) $ 13,296 $ 43 2020 (30,387) (2,504) (610) 10,027 43 2021 (24,099) (2,504) (428) 7,500 43 2022 (18,535) (2,504) (250) 4,877 43 2023 (15,063) (2,504) (222) 3,965 43 Thereafter (84,919) (51,464) (109) 5,028 704 TOTAL (1) $ (213,103) $ (63,984) $ (2,809) $ 44,693 $ 919 _____________ 1. Excludes balances related to properties that have been classified as held for s ale. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to our outstanding indebtedness: December 31, 2018 December 31, 2017 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2) (3) $ 400,000 $ 100,000 LIBOR + 1.05% to 1.50% 3/13/2022 ( 4 ) Term loan A (2)( 5 ) 300,000 300,000 LIBOR + 1.20% to 1.70% 4/1/2020 ( 6 ) Term loan C (2) 75,000 75,000 LIBOR + 1.30% to 2.20% 11/17/2020 Term loan B (2)( 7 ) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan D (2)( 8 ) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series E notes 50,000 50,000 3.66% 9/15/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series D notes 150,000 150,000 3.98% 7/6/2026 Registered senior notes 400,000 400,000 3.95% 11/1/2027 Series C notes 56,000 56,000 4.79% 12/16/2027 Total unsecured debt 2,275,000 1,975,000 Secured debt Sunset Gower Studios/Sunset Bronson Studios (9) 5,001 5,001 LIBOR + 2.25% 3/4/2019 ( 4 ) Met Park North (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (11) 26,880 27,418 5.32% 3/11/2022 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (1 2 ) 101,000 101,000 3.38% 11/6/2028 Rincon Center — 98,392 5.13% N/A Total secured debt 365,381 464,311 Total unsecured and secured debt 2,640,381 2,439,311 Unamortized deferred financing costs/loan discounts (1 3 ) (16,546) (17,931) TOTAL UNSECURED AND SECURED DEBT, NET $ 2,623,835 $ 2,421,380 IN-SUBSTANCE DEFEASED DEBT (1 4 ) $ 138,223 $ — 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (1 5 ) $ 66,136 $ — 4.50% 10/9/2028 _____________ 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, 2018, which may be different than the interest rates as of December 31, 2017 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 or a specified base rate plus an applicable margin. As of December 31, 2018, no such election had been made. 3. The C ompany has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 6 for details. 6. The maturity date may be extended twice, each time for an additional one-year term. 7. T he interest rate on the outstanding balance of the term loan was effectively fixed at 2.96%% to 3.46% per annum through the use of two interest rate swaps. See Note 6 for details. 8. T he interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 6 for details. 9. The Company has the ability to draw up to $257.0 million under its construction loan, subject to lender required submissions. This loan is also secured by the Company’s ICON and CUE properties. 10. 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. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 12. The Company owns 55% of the 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 principal payments with a balloon payment at maturity. 13. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facilit y, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details. 14. T he Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is shown. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 15. This amount |
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 debt (before the impact of extension options, if applicable) as of December 31, 2018: For the Year Ended December 31, Unsecured and Secured Debt In-Substance Defeased Debt Joint Venture Partner Debt 2019 $ 5,569 $ 3,193 $ — 2020 440,095 3,323 — 2021 632 3,494 — 2022 900,085 128,213 — 2023 160,000 — — Thereafter 1,134,000 — 66,136 TOTAL $ 2,640,381 $ 138,223 $ 66,136 |
Schedule of Balance and Key Terms of the Unsecured Revolving Credit Facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: December 31, 2018 December 31, 2017 Outstanding borrowings $ 400,000 $ 100,000 Remaining borrowing capacity 200,000 300,000 TOTAL BORROWING CAPACITY $ 600,000 $ 400,000 Interest rate (1) (2) LIBOR + 1.05% to 1.50% LIBOR + 1.15% to 1.85% Annual facility fee rate ( 1 ) 0.15% or 0.30% 0.20% or 0.35% Contractual maturity date (3) 3/13/2022 4/1/2019 _________________ 1. The rate is based on the operating partnership’s leverage ratio. 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, 2018, no such election had been made. 2. The Company has the option to make a n irrevocable election to change the interest rate depending on the Company’s specified base rate plus an applicable margin. As of December 31, 2018, no such election had been made. 3. The maturity date may be extended once for an additional one |
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Total liabilities to total asset value ≤ 60% Unsecured indebtedness to unencumbered asset value ≤ 60% Adjusted EBITDA to fixed charges ≥ 1.5x Secured indebtedness to total asset value ≤ 45% Unencumbered NOI to unsecured interest expense ≥ 2.0x The following table summarizes existing covenants and their covenant levels related to our registered senior notes: Covenant Ratio Covenant Level Debt to total assets ≤ 60% Total unencumbered assets to unsecured debt ≥ 150% Consolidated income available for debt service to annual debt service charge ≥ 1.5x Secured debt to total assets ≤ 45% |
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, 2018 2017 2016 Gross interest expense (1) $ 92,017 $ 94,660 $ 82,887 Capitalized interest (14,815) (10,655) (11,307) Amortization of deferred financing costs and loan discount, net 5,965 6,032 4,464 INTEREST EXPENSE $ 83,167 $ 90,037 $ 76,044 _________________ 1. Includes interest on the Company’s debt and hedging activities and loan extinguishment costs of $421 thousand and $1.1 million during the years ended December 31, 2018 and 2017, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2018 and December 31, 2017: Underlying Debt Instrument # Hedges Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value Asset/(Liabilities) Low High 2018 2017 Met Park North 1 64,500 August 2013 August 2020 3.71 % 3.71 % $ 350 $ (265) Term loan A (2) 2 300,000 July 2016 April 2020 2.65 % 3.06 % 4,038 3,520 Term loan B (3) 2 350,000 April 2015 April 2022 2.96 % 3.46 % 7,543 4,960 Term loan D (4) 1 125,000 June 2016 November 2022 2.63 % 3.13 % 4,756 4,106 TOTAL 6 $ 839,500 $ 16,687 $ 12,321 _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio as of December 31, 2018. 2. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 2.75% to 3.65%. 3. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.36% to 4.31%. 4. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.03% to 3.98%. |
Future Minimum Base Rents and_2
Future Minimum Base Rents and Lease Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Year ended Non-cancellable Subject to early termination options Total (1) 2019 $ 524,376 $ 5,610 $ 529,986 2020 503,957 14,744 518,701 2021 481,430 25,058 506,488 2022 425,034 39,451 464,485 2023 373,786 41,363 415,149 Thereafter 1,360,511 71,212 1,431,723 TOTAL $ 3,669,094 $ 197,438 $ 3,866,532 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. |
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, 2018: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement which expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. The minimum annual rent cannot be less than a set amount. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. The minimum annual rent cannot be less than a set amount. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. |
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, 2018 2017 2016 Contingent rental expense $ 10,740 $ 8,775 $ 8,651 Minimum rental expense $ 15,906 $ 12,412 $ 12,085 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, 2018: For the Year Ended December 31, Ground Leases (1) 2019 $ 17,137 2020 17,137 2021 17,137 2022 17,137 2023 17,215 Thereafter 485,607 TOTAL $ 571,370 _____________ 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, 2018. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 16,687 $ — $ 16,687 $ — $ 12,586 $ — $ 12,586 Derivative liabilities (2) $ — $ — $ — $ — $ — $ 265 $ — $ 265 Non-real estate investment (1)( 3 ) $ — $ 2,713 $ — $ 2,713 $ — $ — $ — $ — _____________ 1. Included in the prepaid expenses and other assets , net line item in the Consolidated Balance Sheets. 2. Included in the account s payable, accrued liabilities and other line item on the Consolidated Balance Sheets. 3. Related to our investment in shares in a non-public company. Purs uant to our adoption of ASU 2016-01 during 2018, the Company marked the investment to fair value during the second quarter of 2018. The investment was not fair valued in 2017 and was accounted for under the cost method. |
Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ 146,880 $ 147,686 $ — $ — Liabilities Unsecured debt (1)(2) $ 2,274,352 $ 2,227,265 $ 1,974,278 $ 1,960,560 Secured debt ( 1 ) $ 365,381 $ 354,109 $ 464,311 $ 458,441 In-substance defeased debt $ 138,223 $ 135,894 $ — $ — Joint venture partner debt $ 66,136 $ 66,136 $ — $ — _____________ 1. Amounts represent debt excluding net deferred financing costs. 2. The $400.0 million registered senior notes were issued at a discount. The discount, net of amortization was $648 thousand and $722 thousand at December 31, 2018 and December 31, 2017, respectively, and is included within unsecured debt. The following table summarizes the carrying value and fair value of our U.S. Government securities by the contractual maturity date: Carrying Value Fair Value Due in 1 year $ 6,175 $ 6,187 Due in 1 year through 5 years 140,705 141,499 TOTAL $ 146,880 $ 147,686 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 and 2017 OPP Plans: 2018 OPP Plan 2017 OPP Plan Maximum bonus pool, in millions $25.0 $20.0 Performance period 1/1/2018 to 12/31/2020 1/1/2017 to 12/31/2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested Restricted Stock Shares Activity | The following table summarizes the activity and status of all unvested stock awards: 2018 2017 2016 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 1,087,186 $ 33.64 887,179 $ 31.09 827,950 $ 28.92 Granted 190,557 29.53 918,884 34.37 489,826 30.95 Vested (571,481) 32.74 (705,508) 31.42 (430,597) 26.75 Canceled (2,466) 33.38 (13,369) 32.14 — — Unvested at December 31 703,796 $ 32.93 1,087,186 $ 33.64 887,179 $ 31.09 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2018 190,557 $ 29.53 (571,481) $ 16,735 2017 918,884 34.37 (705,508) 24,155 2016 489,826 30.95 (430,597) 14,736 |
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, 2018 2017 2016 Expensed stock compensation (1) $ 17,028 $ 15,079 $ 14,144 Capitalized stock compensation (2) 1,097 836 510 Total stock compensation (3) $ 18,125 $ 15,915 $ 14,654 _________________ 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. |
Outperformance Program | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | 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: 2018 2017 2016 Expected price volatility for the Company 20.00% 24.00% 24.00% Expected price volatility for the particular REIT index 18.00% 17.00% 17.00% Risk-free rate 2.37% 1.47% 1.09% Dividend yield 2.90% 2.30% 2.40% |
One-Time Retention Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of 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% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
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 available to common stockholders: For the Year Ended December 31, 2018 2017 2016 Numerator: Basic net income available to common stockholders $ 98,090 $ 67,587 $ 27,218 Effect of dilutive instruments — — 451 Diluted net income available to common stockholders $ 98,090 $ 67,587 $ 27,669 Denominator: Basic weighted average common shares outstanding 155,445,247 153,488,730 106,188,902 Effect of dilutive instruments (1) 251,239 394,084 4,180,153 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 155,696,486 153,882,814 110,369,055 Basic earnings per common share $ 0.63 $ 0.44 $ 0.26 Diluted earnings per common share $ 0.63 $ 0.44 $ 0.25 _____________ 1. The Company includes unvested awards and convertible common |
Hudson Pacific Partners, L.P. | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per unit for net income available to common unitholders: For the Year Ended December 31, 2018 2017 2016 Numerator: Basic and diluted net income available to common unitholders $ 98,448 $ 67,962 $ 33,066 Effective of dilutive instruments — — 451 Diluted net income available to common unitholders $ 98,448 $ 67,962 $ 33,517 Denominator: Basic weighted average common units outstanding 156,014,292 154,276,773 145,595,246 Effect of dilutive instruments (1) 251,239 394,084 1,144,000 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 156,265,531 154,670,857 146,739,246 Basic earnings per common unit $ 0.63 $ 0.44 $ 0.23 Diluted earnings per common unit $ 0.63 $ 0.44 $ 0.23 _____________ 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. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2017 $ 10,177 $ — Contributions — 112,972 Declared dividend (618) — Net income 618 169 Redemption of preferred units (362) — BALANCE AT DECEMBER 31, 2018 $ 9,815 $ 113,141 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2016 $ (1,081) $ 1,017 $ (64) Unrealized loss (gain) recognized in OCI 4,122 (6,989) (2,867) Loss reclassified from OCI into income (1) 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 3,011 18 3,029 Loss reclassified from OCI into income (1) 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 Unrealized gain recognized in OCI 7,331 27 7,358 Gain reclassified from OCI into income (1) (3,287) (13) (3,300) Net change in OCI 4,044 14 4,058 Cumulative adjustment related to adoption of ASU 2017-12 230 1 231 BALANCE AT DECEMBER 31, 2018 $ 17,501 $ 64 $ 17,565 _____________ 1. The gains and losses on the Company’s derivatives are reported in the interest expense line item |
Schedule of Other Ownership Interests | The following table summarizes the ownership of common units, excluding unvested restricted units as of: December 31, 2018 December 31, 2017 December 31, 2016 Company-owned common units in the operating partnership 154,371,538 155,602,508 136,492,235 Company’s ownership interest percentage 99.6 % 99.6 % 93.5 % Non-controlling common units in the operating partnership (1) 569,045 569,045 9,450,620 Non-controlling ownership interest percentage (1) 0.4 % 0.4 % 6.5 % _____________ 1. Represents common units held by certain of the Company’s executive officers and directors, certain of their affiliates and other outside investors. |
Schedule of Stock Redemptions | The following table summarizes the common unit redemptions in 2016 and 2017: Redemption Date Common Units May 16, 2016 10,117,223 July 21, 2016 19,195,373 November 28, 2016 17,533,099 January 10, 2017 8,881,575 |
Class of Stock [Line Items] | |
Schedule of Common Stock Offering | The following table summarizes the common stock offerings in 2016 and 2017: Offering Date Common Shares May 16, 2016 (1) 10,117,223 July 21, 2016 (1) 19,195,373 November 28, 2016 (1) 17,533,099 January 10, 2017 (1) 8,881,575 March 3, 2017 (2) 9,775,000 _________________ 1. Proceeds from the offering were used to repurchase common units in the operating partnership. 2. 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. |
Schedule of Dividends | The following table summarizes dividends declared and paid for the periods presented: For the Year Ended December 31, 2018 2017 2016 Common stock (1) $ 1.00 $ 1.00 $ 0.80 Common units (1) $ 1.00 $ 1.00 $ 0.80 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 _________________ 1. The fourth quarter 2018 dividends were paid on December 27, 2018 to shareholders and unitholders of record on December 17, 2018. |
Schedule of Dividends Taxability | 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 (1) Qualified Capital Gain Distributions ( 2 ) Return of Capital 3/19/2018 3/29/2018 $ 0.25000 $ 0.15113 $ 0.15113 $ — $ 0.07595 $ 0.02292 6/19/2018 6/29/2018 0.25000 0.15113 0.15113 — 0.07595 0.02292 9/18/2018 9/28/2017 0.25000 0.15113 0.15113 — 0.07595 0.02292 12/17/2018 12/27/2018 0.25000 0.15113 0.15113 — 0.07595 0.02292 TOTALS $ 1.00000 $ 0.60452 $ 0.60452 $ — $ 0.30380 $ 0.09168 100.00 % 60.45 % 30.38 % 9.17 % _____________ 1. On December 22, 2017, the Tax Cuts and Jobs Act enacted Section 199A that generally allows a deduction for non-corporate taxpayers equal to 20% of ordinary dividends distributed by a REIT (excluding capital gain dividends and qualified dividend income). Ordinary dividends eligible for the Section 199A benefit are a subset of, and included in, the taxable ordinary dividend amount. All of the non-qualified dividends listed above are eligible for the Section 199A benefit. 2. $0.02240 of the $0.07595 capital gain distributions should be characterized as unrecaptured Section 1250 gain. |
ATM Program | |
Class of Stock [Line Items] | |
Schedule of Common Stock Offering | The following table summarizes the ATM activity: 2018 2017 2016 Shares of common stock sold during the period — — 165,000 Common stock price ranges N/A N/A $33.54 to $33.95 |
Sement Reporting (Tables)
Sement Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The table below presents the operating activity of our reportable segments: Year Ended December 31, 2018 2017 2016 Office segment Total office revenues $ 652,517 $ 667,110 $ 593,236 Office expenses (226,820) (218,873) (202,935) Office segment profit 425,697 448,237 390,301 Studio segment Total studio revenues 75,901 61,029 46,403 Studio expenses (40,890) (34,634) (25,810) Studio segment profit 35,011 26,395 20,593 TOTAL SEGMENT PROFIT $ 460,708 $ 474,632 $ 410,894 Total revenues $ 728,418 $ 728,139 $ 639,639 Total segment expenses (267,710) (253,507) (228,745) TOTAL SEGMENT PROFIT $ 460,708 $ 474,632 $ 410,894 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Year Ended December 31, 2018 2017 2016 Total profit from all segments $ 460,708 $ 474,632 $ 410,894 General and administrative (61,027) (54,459) (52,400) Depreciation and amortization (251,003) (283,570) (269,087) Interest expense (83,167) (90,037) (76,044) Interest income 1,718 97 260 Unrealized gain on non-real estate investment 928 — — Unrealized gain on ineffective portion of derivative instrument — (70) (1,436) Transaction-related expenses (535) (598) (376) Other income 822 2,992 1,558 Gains on sale of real estate 43,337 45,574 30,389 Net income 111,781 94,561 43,758 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental schedule of cash flow information | Supplemental cash flow information is included as follows: Year Ended December 31, 2018 2017 2016 Cash paid for interest, net of capitalized interest 78,495 77,234 82,491 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments (13,431) (19,587) (37,364) Reclassification of investment in unconsolidated entities for real estate investments — 7,835 — Assumption of debt in connection with property acquisitions 139,003 — — Redeemable non-controlling interest in consolidated real estate entities 12,749 — — Relief of debt in conjunction with sale of real estate — (216,000) — Proceeds from sale of real estate — 216,000 — |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The tables below present selected quarterly information for 2018 and 2017 for the Company: For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income attributable to the Company’s stockholders $ 15,944 $ 17,367 $ 16,202 $ 48,577 Net income attributable to common stockholders’ per share—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income attributable to common stockholders’ per share— diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 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 Total operating expenses $ (145,501) $ (153,861) $ (152,392) $ (139,782) 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 _____________ 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 ($)ft²propertyprojectshares | Dec. 31, 2018ft²property |
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 15,077,804 | |
Number of Properties | property | 55 | |
Office | ||
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 13,853,401 | |
Number of Properties | property | 52 | |
Studio Segment | ||
Business Acquisition [Line Items] | ||
Net rentable area (in square feet) | ft² | 1,224,403 | |
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 Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | Aug. 31, 2018 | Dec. 31, 2018USD ($)joint_venturesegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Accounting Policies [Line Items] | ||||
Investment in unconsolidated entities | $ 86,000 | $ 14,240,000 | ||
Construction costs capitalization period after substantially complete | 1 year | |||
Capitalized personnel costs | $ 12,233,000 | 10,853,000 | $ 9,347,000 | |
Capitalized interest | 14,815,000 | 10,655,000 | 11,307,000 | |
Impairment of long-lived assets | 0 | 0 | 0 | |
Gross unrealized gain | 806,000 | |||
Gross unrealized losses | $ 0 | |||
Number of operating segments | segment | 2 | |||
Income tax expense | $ 0 | |||
Rental revenues and tenant recoveries | 627,400,000 | 643,100,000 | 572,000,000 | |
Capitalized indirect leasing costs | 7,000,000 | 8,900,000 | $ 6,300,000 | |
Future undiscounted minimum lease payments under ground leases | 571,370,000 | |||
Ancillary Revenue | ||||
Accounting Policies [Line Items] | ||||
Other Revenues | 23,900,000 | |||
Other Receivables | 3,800,000 | |||
Parking and other | ||||
Accounting Policies [Line Items] | ||||
Other Revenues | $ 24,600,000 | |||
Other Receivables | $ 1,000,000 | |||
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 | 5 | |||
Number of joint ventures consolidated | joint_venture | 4 | |||
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, primary beneficiary | One Westside and 10850 Pico | ||||
Accounting Policies [Line Items] | ||||
VIE, ownership percentage | 75.00% | 75.00% | ||
VIE, primary beneficiary | One Westside and 10850 Pico | Macerich | ||||
Accounting Policies [Line Items] | ||||
VIE, ownership percentage | 25.00% | |||
VIE, primary beneficiary | Ferry Building | ||||
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 Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 53,740 | $ 78,922 | $ 83,015 | $ 53,551 |
Restricted cash | 14,451 | 22,358 | 25,177 | 18,010 |
Total cash and cash equivalents and restricted cash | $ 68,191 | $ 101,280 | $ 108,192 | $ 71,561 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accounts Receivable Net of Allowance for Uncollectable Tenant Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 16,494 | $ 6,706 |
Straight-line rent receivables | 142,369 | 106,466 |
Allowance for doubtful accounts | (2,490) | (2,472) |
Accounts receivable, net | 14,004 | 4,234 |
Straight-line rent receivables, net | 142,369 | 106,466 |
Allowance for Straight-Line Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ 0 | $ 0 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | ||
Derivative assets | $ 16,687 | $ 12,586 |
Goodwill | 8,754 | 8,754 |
Non-real estate investment | 2,713 | 1,785 |
Investment in unconsolidated entities | 86 | 14,240 |
Other | 27,393 | 23,774 |
Prepaid expenses and other assets, net | $ 55,633 | $ 61,139 |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Investment Property (Details) $ in Thousands | Oct. 23, 2018USD ($)ft² | Oct. 09, 2018USD ($)ft² | Aug. 31, 2018USD ($)ft² | Jun. 07, 2018USD ($)ft² | Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Land | $ 1,372,872 | $ 1,204,700 | ||||
Building and improvements | 4,991,770 | 4,389,846 | ||||
Tenant improvements | 510,217 | 397,012 | ||||
Furniture and fixtures | 9,320 | 8,576 | ||||
Property under development | 175,358 | 219,227 | ||||
Investment in real estate, at cost | $ 7,059,537 | $ 6,219,361 | ||||
Area of real estate acquired | ft² | 916,701 | |||||
Purchase price of properties acquired, asset acquisitions | $ 521,000 | |||||
Total consideration | ||||||
Cash consideration for real estate investments | 362,687 | |||||
Cash consideration for U.S. Government securities | 149,176 | |||||
Debt assumed | 139,003 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 12,749 | |||||
Total Consideration | 663,615 | |||||
Allocation of consideration | ||||||
U.S. Government securities | 149,176 | |||||
Deferred leasing costs and in-place lease intangibles | 18,412 | |||||
Above-market leases | 1,347 | |||||
Below-market ground lease | 4,528 | |||||
Below-market leases | (15,105) | |||||
Total assets assumed | $ 663,615 | |||||
Deferred leasing costs and in-place lease intangibles | ||||||
Allocation of consideration | ||||||
Weighted average amortization period | 6 years 10 months 24 days | |||||
Above-market leases | ||||||
Allocation of consideration | ||||||
Weighted average amortization period | 5 years 1 month 6 days | |||||
Below-market ground leases | ||||||
Allocation of consideration | ||||||
Weighted average amortization period | 48 years 7 months 6 days | |||||
Below-market leases | ||||||
Allocation of consideration | ||||||
Weighted average amortization period | 11 years 1 month 6 days | |||||
6605 Eleanor Avenue | ||||||
Total consideration | ||||||
Cash consideration for real estate investments | $ 18,071 | |||||
Cash consideration for U.S. Government securities | 0 | |||||
Debt assumed | 0 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | |||||
Total Consideration | 18,071 | |||||
Allocation of consideration | ||||||
Investment in real estate | 18,071 | |||||
U.S. Government securities | 0 | |||||
Deferred leasing costs and in-place lease intangibles | 0 | |||||
Above-market leases | 0 | |||||
Below-market ground lease | 0 | |||||
Below-market leases | 0 | |||||
Total assets assumed | 18,071 | |||||
1034 Seward Street | ||||||
Total consideration | ||||||
Cash consideration for real estate investments | 12,095 | |||||
Cash consideration for U.S. Government securities | 0 | |||||
Debt assumed | 0 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | |||||
Total Consideration | 12,095 | |||||
Allocation of consideration | ||||||
Investment in real estate | 12,095 | |||||
U.S. Government securities | 0 | |||||
Deferred leasing costs and in-place lease intangibles | 0 | |||||
Above-market leases | 0 | |||||
Below-market ground lease | 0 | |||||
Below-market leases | 0 | |||||
Total assets assumed | $ 12,095 | |||||
One Westside and 10850 Pico | ||||||
Total consideration | ||||||
Cash consideration for real estate investments | $ 40,986 | |||||
Cash consideration for U.S. Government securities | 149,176 | |||||
Debt assumed | 139,003 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 12,749 | |||||
Total Consideration | 341,914 | |||||
Allocation of consideration | ||||||
Investment in real estate | 196,444 | |||||
U.S. Government securities | 149,176 | |||||
Deferred leasing costs and in-place lease intangibles | 826 | |||||
Above-market leases | 605 | |||||
Below-market ground lease | 0 | |||||
Below-market leases | (5,137) | |||||
Total assets assumed | $ 341,914 | |||||
One Westside and 10850 Pico | VIE, primary beneficiary | ||||||
Business Acquisition [Line Items] | ||||||
VIE, ownership percentage | 75.00% | 75.00% | ||||
Ferry Building | ||||||
Total consideration | ||||||
Cash consideration for real estate investments | $ 281,180 | |||||
Cash consideration for U.S. Government securities | 0 | |||||
Debt assumed | 0 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | |||||
Total Consideration | 281,180 | |||||
Allocation of consideration | ||||||
Investment in real estate | 268,292 | |||||
U.S. Government securities | 0 | |||||
Deferred leasing costs and in-place lease intangibles | 17,586 | |||||
Above-market leases | 742 | |||||
Below-market ground lease | 4,528 | |||||
Below-market leases | (9,968) | |||||
Total assets assumed | $ 281,180 | |||||
Ferry Building | VIE, primary beneficiary | ||||||
Business Acquisition [Line Items] | ||||||
VIE, ownership percentage | 55.00% | |||||
6660 Santa Monica | ||||||
Total consideration | ||||||
Cash consideration for real estate investments | $ 10,355 | |||||
Cash consideration for U.S. Government securities | 0 | |||||
Debt assumed | 0 | |||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | |||||
Total Consideration | 10,355 | |||||
Allocation of consideration | ||||||
Investment in real estate | 10,355 | |||||
U.S. Government securities | 0 | |||||
Deferred leasing costs and in-place lease intangibles | 0 | |||||
Above-market leases | 0 | |||||
Below-market ground lease | 0 | |||||
Below-market leases | 0 | |||||
Total assets assumed | $ 10,355 | |||||
Studio Segment | 6605 Eleanor Avenue | ||||||
Business Acquisition [Line Items] | ||||||
Area of real estate acquired | ft² | 22,823 | |||||
Purchase price of properties acquired, asset acquisitions | $ 18,000 | |||||
Studio Segment | 1034 Seward Street | ||||||
Business Acquisition [Line Items] | ||||||
Area of real estate acquired | ft² | 18,673 | |||||
Purchase price of properties acquired, asset acquisitions | $ 12,000 | |||||
Studio Segment | One Westside and 10850 Pico | ||||||
Business Acquisition [Line Items] | ||||||
Area of real estate acquired | ft² | 595,987 | |||||
Purchase price of properties acquired, asset acquisitions | $ 190,000 | |||||
Studio Segment | 6660 Santa Monica | ||||||
Business Acquisition [Line Items] | ||||||
Area of real estate acquired | ft² | 11,200 | |||||
Purchase price of properties acquired, asset acquisitions | $ 10,000 | |||||
Office | Ferry Building | ||||||
Business Acquisition [Line Items] | ||||||
Area of real estate acquired | ft² | 268,018 | |||||
Purchase price of properties acquired, asset acquisitions | $ 291,000 |
Investment in Real Estate - Sch
Investment in Real Estate - Schedule of Dispositions (Details) $ in Millions | Jul. 27, 2018USD ($)ft² | Apr. 10, 2018USD ($)ft² | Mar. 01, 2018USD ($)ft² | Jan. 31, 2018USD ($)ft² | Jan. 25, 2018USD ($)ft² | Nov. 16, 2017USD ($)ft² | Mar. 21, 2017USD ($)ft² | Feb. 14, 2017USD ($)ft² | Nov. 04, 2016USD ($)ft² | Jun. 01, 2016USD ($)ft² | Apr. 07, 2016USD ($)ft² | Jan. 14, 2016USD ($)ft² | Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($)ft² | Dec. 31, 2016USD ($)ft² |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 815,226 | 823,261 | 921,343 | ||||||||||||
Sales Price | $ | $ 464.8 | $ 436.8 | $ 367.4 | ||||||||||||
Embarcadero Place | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 197,402 | ||||||||||||||
Sales Price | $ | $ 136 | ||||||||||||||
2600 Campus Drive | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 63,050 | ||||||||||||||
Sales Price | $ | $ 22.5 | ||||||||||||||
2180 Sand Hill Road | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 45,613 | ||||||||||||||
Sales Price | $ | $ 82.5 | ||||||||||||||
9300 Wilshire | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 61,422 | ||||||||||||||
Sales Price | $ | $ 13.8 | ||||||||||||||
Peninsula Office Park | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Area of real estate property | ft² | 447,739 | ||||||||||||||
Sales Price | $ | $ 210 | ||||||||||||||
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 | $ | $ 51.8 | ||||||||||||||
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 | ||||||||||||||
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 | ||||||||||||||
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 | ||||||||||||||
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 | ||||||||||||||
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 | $ | $ 53.4 | ||||||||||||||
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 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | Dec. 31, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gains on sale of real estate | $ 43,337 | $ 45,574 | $ 30,389 |
Number of real estate properties, held-for-sale | property | 0 | 5 | |
9300 Culver | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gains on sale of real estate | $ 7,500 |
Investment in Real Estate - R_2
Investment in Real Estate - Real Estate Held-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets associated with real estate held for sale | $ 0 | $ 411,931 |
Liabilities associated with real estate held for sale | 0 | 4,903 |
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 | 0 | 396,846 |
Accounts receivable, net | 0 | 213 |
Straight-line rent receivables, net | 0 | 5,225 |
Deferred leasing costs and lease intangible assets, net | 0 | 9,589 |
Prepaid expenses and other assets, net | 0 | 58 |
Assets associated with real estate held for sale | 0 | 411,931 |
Accounts payable and accrued liabilities | 0 | 1,808 |
Lease intangible liabilities, net | 0 | 485 |
Security deposits and prepaid rent | 0 | 2,610 |
Liabilities associated with real estate held for sale | $ 0 | $ 4,903 |
Deferred Leasing Costs and Le_3
Deferred Leasing Costs and Lease Intangibles, net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles, net | $ 279,896 | $ 239,029 |
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Off-market leases, net | 45,612 | 49,540 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 336,535 | 301,945 |
Accumulated amortization | (123,432) | (127,703) |
Deferred leasing costs and lease intangibles, net | 213,103 | 174,242 |
Below-market ground leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 72,916 | 68,388 |
Accumulated amortization | (8,932) | (6,498) |
Deferred leasing costs and lease intangibles, net | 63,984 | 61,890 |
Above-market leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 8,425 | 18,028 |
Accumulated amortization | (5,616) | (15,131) |
Deferred leasing costs and lease intangibles, net | 2,809 | 2,897 |
Below-market leases | ||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Below-market leases, net | 101,736 | 103,597 |
Above-market ground leases, net | (57,043) | (55,019) |
Off-market leases, net | 44,693 | 48,578 |
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 | (176) | (133) |
Off-market leases, net | $ 919 | $ 962 |
Deferred Leasing Costs and Le_4
Deferred Leasing Costs and Lease Intangibles, net - Future Amortization Expense For Finitle-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | $ (17,593) | $ (18,062) | $ (19,734) |
Deferred leasing costs and lease intangibles, net | (279,896) | (239,029) | |
Off-market leases, net | 45,612 | 49,540 | |
Below-market leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | 19,143 | 25,015 | 30,993 |
2,019 | 13,296 | ||
2,020 | 10,027 | ||
2,021 | 7,500 | ||
2,022 | 4,877 | ||
2,023 | 3,965 | ||
Thereafter | 5,028 | ||
Off-market leases, net | 44,693 | 48,578 | |
Above-market ground leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | 43 | 43 | 43 |
2,019 | 43 | ||
2,020 | 43 | ||
2,021 | 43 | ||
2,022 | 43 | ||
2,023 | 43 | ||
Thereafter | 704 | ||
Off-market leases, net | 919 | 962 | |
Deferred leasing costs and in-place lease intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | 46,690 | 72,883 | 84,492 |
2,019 | (40,100) | ||
2,020 | (30,387) | ||
2,021 | (24,099) | ||
2,022 | (18,535) | ||
2,023 | (15,063) | ||
Thereafter | (84,919) | ||
Deferred leasing costs and lease intangibles, net | (213,103) | (174,242) | |
Below-market ground leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | 2,465 | 2,548 | 2,203 |
2,019 | (2,504) | ||
2,020 | (2,504) | ||
2,021 | (2,504) | ||
2,022 | (2,504) | ||
2,023 | (2,504) | ||
Thereafter | (51,464) | ||
Deferred leasing costs and lease intangibles, net | (63,984) | (61,890) | |
Above-market leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of above- and below-market leases, net | 1,550 | 6,953 | $ 11,259 |
2,019 | (1,190) | ||
2,020 | (610) | ||
2,021 | (428) | ||
2,022 | (250) | ||
2,023 | (222) | ||
Thereafter | (109) | ||
Deferred leasing costs and lease intangibles, net | $ (2,809) | $ (2,897) |
Debt (Details)
Debt (Details) | Aug. 31, 2018 | Jul. 31, 2013 | Sep. 30, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2016derivative | Jun. 30, 2016 |
Debt | |||||||
Notes payable | $ 2,640,381,000 | $ 2,439,311,000 | |||||
Deferred financing costs and discounts, net | (16,546,000) | (17,931,000) | |||||
Total Unsecured and Secured Debt, net | $ 2,623,835,000 | 2,421,380,000 | |||||
Duration used in interest rate calculation | 360 days | ||||||
One Westside and 10850 Pico | VIE, primary beneficiary | |||||||
Debt | |||||||
Periodic payment, debt service payment term | 10 years | ||||||
VIE, ownership percentage | 75.00% | 75.00% | |||||
Hill7 | |||||||
Debt | |||||||
Joint venture, ownership percentage | 55.00% | ||||||
Term A Loan | Interest Rate Contract | |||||||
Debt | |||||||
Number of derivative instruments held | derivative | 2 | ||||||
Sunset Gower Sunset Bronson | |||||||
Debt | |||||||
Notes payable | $ 5,000,000 | ||||||
Met Park North | |||||||
Debt | |||||||
Debt instrument term | 7 years | ||||||
Fixed interest rate percentage | 3.71% | ||||||
10950 Washington | |||||||
Debt | |||||||
Periodic payment, debt service payment term | 30 years | ||||||
Unsecured Debt | |||||||
Debt | |||||||
Notes payable | $ 2,275,000,000 | 1,975,000,000 | |||||
Unsecured Debt | Hudson Pacific Partners, L.P. | Revolving Credit Facility | |||||||
Debt | |||||||
Notes payable | 400,000,000 | ||||||
Maximum borrowing capacity | 600,000,000 | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | |||||||
Debt | |||||||
Notes payable | 400,000,000 | 100,000,000 | |||||
Maximum borrowing capacity | $ 600,000,000 | $ 400,000,000 | |||||
Debt instrument term | 1 year | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.05% | 1.15% | |||||
Unsecured Debt | Unsecured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.50% | 1.85% | |||||
Unsecured Debt | Term A Loan | |||||||
Debt | |||||||
Notes payable | $ 300,000,000 | $ 300,000,000 | |||||
Unsecured Debt | Term A Loan | Minimum | |||||||
Debt | |||||||
Fixed interest rate percentage | 2.65% | ||||||
Unsecured Debt | Term A Loan | Maximum | |||||||
Debt | |||||||
Fixed interest rate percentage | 3.06% | ||||||
Unsecured Debt | Term A Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.20% | ||||||
Unsecured Debt | Term A Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.70% | ||||||
Unsecured Debt | Term C Loan | |||||||
Debt | |||||||
Notes payable | $ 75,000,000 | 75,000,000 | |||||
Unsecured Debt | Term C Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.30% | ||||||
Unsecured Debt | Term C Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt | |||||||
Basis spread on variable rate | 2.20% | ||||||
Unsecured Debt | Term B Loan | |||||||
Debt | |||||||
Notes payable | $ 350,000,000 | 350,000,000 | |||||
Number of derivative instruments held | derivative | 2 | ||||||
Unsecured Debt | Term B Loan | Minimum | |||||||
Debt | |||||||
Fixed interest rate percentage | 2.96% | ||||||
Unsecured Debt | Term B Loan | Maximum | |||||||
Debt | |||||||
Fixed interest rate percentage | 3.46% | ||||||
Unsecured Debt | Term B Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.20% | ||||||
Unsecured Debt | Term B Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.70% | ||||||
Unsecured Debt | Term D Loan | |||||||
Debt | |||||||
Notes payable | $ 125,000,000 | 125,000,000 | |||||
Unsecured Debt | Term D Loan | Minimum | |||||||
Debt | |||||||
Fixed interest rate percentage | 2.63% | ||||||
Unsecured Debt | Term D Loan | Maximum | |||||||
Debt | |||||||
Fixed interest rate percentage | 3.13% | ||||||
Unsecured Debt | Term D Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.20% | ||||||
Unsecured Debt | Term D Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt | |||||||
Basis spread on variable rate | 1.70% | ||||||
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 | 400,000,000 | |||||
Interest Rate | 3.95% | ||||||
Maximum borrowing capacity | $ 257,000,000 | ||||||
Unsecured Debt | Series C Notes | |||||||
Debt | |||||||
Notes payable | $ 56,000,000 | 56,000,000 | |||||
Interest Rate | 4.79% | ||||||
Secured Debt | |||||||
Debt | |||||||
Notes payable | $ 365,381,000 | 464,311,000 | |||||
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 | $ 26,880,000 | 27,418,000 | |||||
Interest Rate | 5.32% | ||||||
Secured Debt | Element LA | |||||||
Debt | |||||||
Notes payable | $ 168,000,000 | 168,000,000 | |||||
Interest Rate | 4.59% | ||||||
Secured Debt | Hill7 | |||||||
Debt | |||||||
Notes payable | $ 101,000,000 | 101,000,000 | |||||
Interest Rate | 3.38% | ||||||
Secured Debt | Rincon Center | |||||||
Debt | |||||||
Notes payable | $ 0 | 98,392,000 | |||||
Interest Rate | 5.13% | ||||||
In-Substance Defeased Debt | |||||||
Debt | |||||||
Notes payable | $ 138,223,000 | 0 | |||||
Total Unsecured and Secured Debt, net | $ 138,223,000 | 0 | |||||
Interest Rate | 4.47% | ||||||
In-Substance Defeased Debt | Hudson Pacific Partners, L.P. | |||||||
Debt | |||||||
Total Unsecured and Secured Debt, net | $ 138,223,000 | 0 | |||||
Joint venture partner debt | |||||||
Debt | |||||||
Notes payable | 66,136,000 | 0 | |||||
Total Unsecured and Secured Debt, net | $ 66,136,000 | 0 | |||||
Interest Rate | 4.50% | ||||||
Joint venture partner debt | Hudson Pacific Partners, L.P. | |||||||
Debt | |||||||
Total Unsecured and Secured Debt, net | $ 66,136,000 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | Aug. 31, 2018USD ($) | Oct. 02, 2017USD ($) | Feb. 13, 2016 | Nov. 16, 2015USD ($) | Dec. 31, 2018USD ($)Rate | Dec. 31, 2017USD ($) | Nov. 16, 2017USD ($) | Apr. 01, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Cash consideration for U.S. Government securities | $ 149,176,000 | |||||||
Debt assumed | 139,003,000 | |||||||
Notes payable | $ 2,640,381,000 | $ 2,439,311,000 | ||||||
Maximum leverage ratio | 0.60 | |||||||
Unencumbered leverage ratio | 0.60 | |||||||
Fixed charge coverage ratio | Rate | 150.00% | |||||||
Maximum secured indebtedness ratio | 0.45 | |||||||
Minimum unsecured interest coverage ratio | Rate | 200.00% | |||||||
Disposal Group, Not Discontinued Operations | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable, held-for-sale | 216,000,000 | |||||||
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] | ||||||||
Notes payable | $ 5,000,000 | |||||||
Principal amount guaranteed | 19.50% | |||||||
Maximum guarantee amount | $ 1,000,000 | |||||||
Joint venture partner debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 66,136,000 | 0 | ||||||
Interest Rate | 4.50% | |||||||
Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt to total assets | Rate | 60.00% | |||||||
Total unencumbered assets to unsecured debt | 0.02 | |||||||
Consolidated income available for debt service to annual debt service charge | Rate | 150.00% | |||||||
Secured debt to total assets | 0.45 | |||||||
Senior Notes | Senior Notes Due November 1, 2027 | Hudson Pacific Partners, L.P. | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||
Percentage of part at debt issuance | 99.815% | |||||||
Stated interest rate | 3.95% | |||||||
Interest Rate | 3.97% | |||||||
Unsecured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 2,275,000,000 | 1,975,000,000 | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | 400,000,000 | 100,000,000 | ||||||
Maximum borrowing capacity | 600,000,000 | 400,000,000 | ||||||
Remaining borrowing capacity | $ 200,000,000 | $ 300,000,000 | ||||||
Debt instrument term | 1 year | |||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.15% | 0.20% | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.05% | 1.15% | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.30% | 0.35% | ||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | 1.85% | ||||||
Unsecured Debt | Term C Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 75,000,000 | $ 75,000,000 | ||||||
Unsecured Debt | Term C Loan | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.30% | |||||||
Unsecured Debt | Term C Loan | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.20% | |||||||
Unsecured Debt | Term C Loan | Hudson Pacific Partners, L.P. | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused commitment fee | 0.20% | |||||||
Unsecured Debt | Term A Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 300,000,000 | 300,000,000 | ||||||
Unsecured Debt | Term A Loan | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Unsecured Debt | Term A Loan | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
Unsecured Debt | Term D Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 125,000,000 | 125,000,000 | ||||||
Unsecured Debt | Term D Loan | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Unsecured Debt | Term D Loan | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.70% | |||||||
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% | |||||||
In-Substance Defeased Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 138,223,000 | 0 | ||||||
Interest Rate | 4.47% | |||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | $ 365,381,000 | 464,311,000 | ||||||
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% | |||||||
One Westside and 10850 Pico | ||||||||
Debt Instrument [Line Items] | ||||||||
Cash consideration for U.S. Government securities | $ 149,176,000 | |||||||
Debt assumed | $ 139,003,000 | |||||||
Pinnacle I and II | Disposal Group, Not Discontinued Operations | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from disposition of real estate held-for-sale | $ 350,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Increase in borrowing capacity | $ 300,000,000 | |||||||
Revolving Credit Facility | Unsecured Debt | Hudson Pacific Partners, L.P. | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes payable | 400,000,000 | |||||||
Maximum borrowing capacity | $ 600,000,000 |
Debt - Minimum Future Payments
Debt - Minimum Future Payments Due on Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Total | $ 2,640,381 | $ 2,439,311 |
Unsecured and Secured Debt | ||
Debt Instrument [Line Items] | ||
2,019 | 5,569 | |
2,020 | 440,095 | |
2,021 | 632 | |
2,022 | 900,085 | |
2,023 | 160,000 | |
Thereafter | 1,134,000 | |
Total | 2,640,381 | |
In-Substance Defeased Debt | ||
Debt Instrument [Line Items] | ||
2,019 | 3,193 | |
2,020 | 3,323 | |
2,021 | 3,494 | |
2,022 | 128,213 | |
2,023 | 0 | |
Thereafter | 0 | |
Total | 138,223 | 0 |
Joint venture partner debt | ||
Debt Instrument [Line Items] | ||
2,019 | 0 | |
2,020 | 0 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 66,136 | |
Total | $ 66,136 | $ 0 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |||
Gross interest expense | $ 92,017 | $ 94,660 | $ 82,887 |
Capitalized interest | (14,815) | (10,655) | (11,307) |
Interest Expense | 83,167 | 90,037 | $ 76,044 |
Interest costs incurred on notes payable, hedging activities and extinguishment costs | $ 421 | $ 1,100 |
Derivatives (Details)
Derivatives (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)derivative | Dec. 31, 2017USD ($)derivative | Dec. 31, 2016USD ($) | Mar. 13, 2018 | Jan. 01, 2018USD ($) | |
Derivative | |||||
Cumulative-effect adjjustment to other comprehensive income | $ 0 | ||||
Loss recognized related to ineffective portion of derivative contracts | 70,000 | $ 1,400,000 | |||
Unrealized gain included in accumulated other comprehensive loss | $ 7,900,000 | ||||
Accumulated Deficit | |||||
Derivative | |||||
Cumulative-effect adjjustment to other comprehensive income | $ (231,000) | ||||
Accumulated Deficit | ASU 2017-12 | |||||
Derivative | |||||
Cumulative-effect adjjustment to other comprehensive income | $ 231,000 | ||||
Met Park North | |||||
Derivative | |||||
Fixed interest rate percentage | 3.71% | ||||
Designated as Hedging Instrument | Interest Rate Swaps | |||||
Derivative | |||||
Number of derivative instruments held | derivative | 6 | 6 | |||
Notional amount | $ 839,500,000 | $ 839,500,000 | |||
Fair Value | 16,687,000 | 12,321,000 | |||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | |||||
Derivative | |||||
Notional amount | 64,500,000 | ||||
Fair Value | $ 350,000 | (265,000) | |||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | Minimum | |||||
Derivative | |||||
Fixed interest rate percentage | 3.71% | ||||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | Maximum | |||||
Derivative | |||||
Fixed interest rate percentage | 3.71% | ||||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | |||||
Derivative | |||||
Number of derivative instruments held | derivative | 2 | ||||
Notional amount | $ 300,000,000 | ||||
Fair Value | $ 4,038,000 | 3,520,000 | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | Minimum | |||||
Derivative | |||||
Fixed interest rate percentage | 2.65% | 2.75% | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | Maximum | |||||
Derivative | |||||
Fixed interest rate percentage | 3.06% | 3.65% | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | |||||
Derivative | |||||
Number of derivative instruments held | derivative | 2 | ||||
Notional amount | $ 350,000,000 | ||||
Fair Value | $ 7,543,000 | 4,960,000 | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | Minimum | |||||
Derivative | |||||
Fixed interest rate percentage | 2.96% | 3.36% | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | Maximum | |||||
Derivative | |||||
Fixed interest rate percentage | 3.46% | 4.31% | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | |||||
Derivative | |||||
Number of derivative instruments held | derivative | 1 | ||||
Notional amount | $ 125,000,000 | ||||
Fair Value | $ 4,756,000 | $ 4,106,000 | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | Minimum | |||||
Derivative | |||||
Fixed interest rate percentage | 2.63% | 3.03% | |||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | Maximum | |||||
Derivative | |||||
Fixed interest rate percentage | 3.13% | 3.98% |
Future Minimum Base Rents and_3
Future Minimum Base Rents and Lease Payments - Future Minimum Base Rents (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,019 | $ 529,986 |
2,020 | 518,701 |
2,021 | 506,488 |
2,022 | 464,485 |
2,023 | 415,149 |
Thereafter | 1,431,723 |
Total | 3,866,532 |
Non-Cancelable Leases | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,019 | 524,376 |
2,020 | 503,957 |
2,021 | 481,430 |
2,022 | 425,034 |
2,023 | 373,786 |
Thereafter | 1,360,511 |
Total | 3,669,094 |
Subject to Early Termination Options | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,019 | 5,610 |
2,020 | 14,744 |
2,021 | 25,058 |
2,022 | 39,451 |
2,023 | 41,363 |
Thereafter | 71,212 |
Total | $ 197,438 |
Future Minimum Base Rents and_4
Future Minimum Base Rents and Lease Payments - 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, 2018USD ($) | |
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% |
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 |
Ferry Building | |
Operating Leased Assets | |
Minimum annual rent calculation, frequency of rent adjustments | 5 years |
Cumulative change in CPI, floor, percent | 10.00% |
Cumulative change in CPI, cap, percent | 20.00% |
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, frequency of rent adjustments | 5 years |
Minimum annual rent calculation, percent | 10.00% |
Future Minimum Base Rents and_5
Future Minimum Base Rents and Lease Payments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | |||
Contingent rental expense | $ 10,740 | $ 8,775 | $ 8,651 |
Minimum rental expense | $ 15,906 | $ 12,412 | $ 12,085 |
Future Minimum Base Rents and_6
Future Minimum Base Rents and Lease Payments - Future Minimum Payments Due (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2,019 | $ 17,137 |
2,020 | 17,137 |
2,021 | 17,137 |
2,022 | 17,137 |
2,023 | 17,215 |
Thereafter | 485,607 |
Total | $ 571,370 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 02, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | $ 16,687,000 | $ 12,586,000 | |
Derivative liabilities | 0 | 265,000 | |
Non-real estate investment | 2,713,000 | ||
Gross unrealized gain | 806,000 | ||
Gross unrealized losses | 0 | ||
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Non-real estate investment | 146,880,000 | 0 | |
Due in 1 year | 6,175,000 | ||
Due in 1 year through 5 years | 140,705,000 | ||
Total | 146,880,000 | ||
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Non-real estate investment | 147,686,000 | 0 | |
Due in 1 year | 6,187,000 | ||
Due in 1 year through 5 years | 141,499,000 | ||
Total | 147,686,000 | ||
Unsecured Debt | Registered Senior Notes | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Debt instrument, face amount | $ 400,000,000 | ||
Discount net of amortization | 648,000 | 722,000 | |
Unsecured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 2,274,352,000 | 1,974,278,000 | |
Unsecured Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 2,227,265,000 | 1,960,560,000 | |
Secured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 365,381,000 | 464,311,000 | |
Secured Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 354,109,000 | 458,441,000 | |
In-Substance Defeased Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 138,223,000 | 0 | |
In-Substance Defeased Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 135,894,000 | 0 | |
Joint venture partner debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 66,136,000 | 0 | |
Joint venture partner debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 66,136,000 | 0 | |
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 | 16,687,000 | 12,586,000 | |
Derivative liabilities | 0 | 265,000 | |
Level 2 | Non-Real Estate Investmentest | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Non-real estate investment | 2,713,000 | ||
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) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 28, 2018 | Feb. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock price assumption for maximum bonus pool eligibility (in dollars per share) | $ 29.06 | |||||
Performance period (in years) | 3 years | |||||
Vesting percentage after performance period | 50.00% | |||||
Mandatory holding period upon vesting | 4 years | |||||
Amortization of stock-based compensation | $ 18,125,000 | $ 15,915,000 | $ 14,654,000 | |||
Unrecognized compensation cost related to unvested share-based payments | $ 32,200,000 | |||||
Unrecognized compensation cost, amortization period (in years) | 3 years | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period (in years) | 2 years | |||||
Granted (in shares) | 190,557 | 918,884 | 489,826 | |||
Granted (in dollars per share) | $ 29.53 | $ 34.37 | $ 30.95 | |||
Time-based restricted operating partnership performance units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 318,549 | |||||
Granted (in dollars per share) | $ 28.41 | |||||
2010 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized for issuance | 2,500,000 | |||||
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 | |||||
One-Time Retention Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Retention awards, vesting percentage | 25.00% | 50.00% | ||||
Outperformance Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum bonus pool | $ 25,000,000 | $ 20,000,000 | $ 25,000,000 | |||
Absolute TSR hurdle rate | 21.00% | |||||
Annual absolute TSR hurdle rate | 7.00% | |||||
TSR maximum reduction percentage | 75.00% | |||||
Outperformance Program | Expensed stock compensation | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 17,028,000 | 15,079,000 | $ 14,144,000 | |||
Outperformance Program | Capitalized stock compensation | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 1,097,000 | $ 836,000 | $ 510,000 |
Stock-Based Compensation - Outp
Stock-Based Compensation - Outperformance Plan (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 |
Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum bonus pool | $ 25,000,000 | $ 20,000,000 | $ 25,000,000 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 2.37% | 1.47% | 1.09% |
Total dividend payments over the measurement period per share | 2.90% | 2.30% | 2.40% |
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 | 20.00% | 24.00% | 24.00% |
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 | 18.00% | 17.00% | 17.00% |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning balance (in shares) | 1,087,186 | 887,179 | 827,950 |
Granted (in shares) | 190,557 | 918,884 | 489,826 |
Vested (in shares) | (571,481) | (705,508) | (430,597) |
Canceled (in shares) | (2,466) | (13,369) | 0 |
Ending balance (in shares) | 703,796 | 1,087,186 | 887,179 |
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) | $ 33.64 | $ 31.09 | $ 28.92 |
Granted (in dollars per share) | 29.53 | 34.37 | 30.95 |
Vested (in dollars per share) | 32.74 | 31.42 | 26.75 |
Canceled (in dollars per share) | 33.38 | 32.14 | 0 |
Ending balance (in dollars per share) | $ 32.93 | $ 33.64 | $ 31.09 |
Total Vest-Date Fair Value | $ 16,735 | $ 24,155 | $ 14,736 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Basic net income available to common stockholders | $ 98,090 | $ 67,587 | $ 27,218 | ||||||||
Effect of dilutive instruments | 0 | 0 | 451 | ||||||||
Diluted net income available to common stockholders | $ 98,090 | $ 67,587 | $ 27,669 | ||||||||
Denominator: | |||||||||||
Basic weighted average shares of common shares/units outstanding (in shares) | 155,445,247 | 153,488,730 | 106,188,902 | ||||||||
Effect of dilutive instruments (in shares) | 251,239 | 394,084 | 4,180,153 | ||||||||
Diluted weighted average common shares/units outstanding (in shares) | 155,696,486 | 153,882,814 | 110,369,055 | ||||||||
Basic earnings per common share/unit (in dollars per share) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.63 | $ 0.44 | $ 0.26 |
Diluted earnings per common share/unit (in dollars per share) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.63 | $ 0.44 | $ 0.25 |
Hudson Pacific Partners, L.P. | |||||||||||
Numerator: | |||||||||||
Basic net income available to common stockholders | $ 98,448 | $ 67,962 | $ 33,066 | ||||||||
Effect of dilutive instruments | 0 | 0 | 451 | ||||||||
Diluted net income available to common stockholders | $ 98,448 | $ 67,962 | $ 33,517 | ||||||||
Denominator: | |||||||||||
Basic weighted average shares of common shares/units outstanding (in shares) | 156,014,292 | 154,276,773 | 145,595,246 | ||||||||
Effect of dilutive instruments (in shares) | 251,239 | 394,084 | |||||||||
Diluted weighted average common shares/units outstanding (in shares) | 156,265,531 | 154,670,857 | 146,739,246 | ||||||||
Basic earnings per common share/unit (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.23 | ||||||||
Diluted earnings per common share/unit (in dollars per share) | $ 0.63 | $ 0.44 | $ 0.23 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 16, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Noncontrolling Interest [Line Items] | ||||
Interest rate of preferred stock | 6.25% | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Redemption of common units in the operating partnership | $ (310,855) | $ (1,446,039) | ||
Interest in Consolidated Entities | ||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | $ 0 | |||
Contributions | 112,972 | |||
Dividends declared | 0 | |||
Net Income | 169 | |||
Redemption of common units in the operating partnership | 0 | |||
Ending balance | $ 113,141 | 0 | ||
HPP MAC WSP, LLC | VIE, primary beneficiary | ||||
Noncontrolling Interest [Line Items] | ||||
VIE, ownership percentage | 75.00% | |||
Ferry Building | VIE, primary beneficiary | ||||
Noncontrolling Interest [Line Items] | ||||
VIE, ownership percentage | 55.00% | |||
Series A Redeemable Preferred Units | ||||
Noncontrolling Interest [Line Items] | ||||
Redeemable non-controlling interest shares | 407,066 | |||
Shares redeemed during period | 14,468 | |||
Redemption price (in dollars per share) | $ 25 | |||
Liquidation preference (in dollars per share) | $ 25 | |||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning balance | $ 10,177 | |||
Contributions | 0 | |||
Dividends declared | (618) | |||
Net Income | 618 | |||
Redemption of common units in the operating partnership | (362) | |||
Ending balance | $ 9,815 | $ 10,177 |
Equity - Comprehensive Income (
Equity - Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 3,910,964 | $ 3,702,750 | $ 3,729,037 |
Reclassification related to redemption of common units in the operating partnership | (310,855) | (1,446,039) | |
Cumulative-effect adjjustment to other comprehensive income | 0 | ||
Ending balance | 3,830,130 | 3,910,964 | 3,702,750 |
Interest expense | 83,167 | 90,037 | 76,044 |
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 | 13,276 | 5,878 | (64) |
Unrealized loss (gain) recognized in OCI due to change in fair value | 7,358 | 3,029 | (2,867) |
Gain reclassified from OCI from income | (3,300) | 4,369 | 8,809 |
Net change in OCI | 4,058 | 7,398 | 5,942 |
Reclassification related to redemption of common units in the operating partnership | 0 | ||
Cumulative-effect adjjustment to other comprehensive income | 231 | ||
Ending balance | 17,565 | 13,276 | 5,878 |
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 | 13,227 | 9,496 | (1,081) |
Unrealized loss (gain) recognized in OCI due to change in fair value | 7,331 | 3,011 | 4,122 |
Gain reclassified from OCI from income | (3,287) | 4,342 | 6,455 |
Net change in OCI | 4,044 | 7,353 | 10,577 |
Reclassification related to redemption of common units in the operating partnership | (3,622) | ||
Cumulative-effect adjjustment to other comprehensive income | 230 | ||
Ending balance | 17,501 | 13,227 | 9,496 |
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 | 49 | (3,618) | 1,017 |
Unrealized loss (gain) recognized in OCI due to change in fair value | 27 | 18 | (6,989) |
Gain reclassified from OCI from income | (13) | 27 | 2,354 |
Net change in OCI | 14 | 45 | (4,635) |
Reclassification related to redemption of common units in the operating partnership | 3,622 | ||
Cumulative-effect adjjustment to other comprehensive income | 1 | ||
Ending balance | $ 64 | $ 49 | $ (3,618) |
Equity - Narrative (Details)
Equity - Narrative (Details) | Mar. 03, 2017shares | Jan. 10, 2017shares | Nov. 28, 2016shares | Jul. 21, 2016shares | May 16, 2016shares | Dec. 31, 2018shares | Dec. 31, 2017shares | Dec. 31, 2016shares |
Class of Stock [Line Items] | ||||||||
Company-owned common units in the operating partnership | 154,371,538 | 155,602,508 | ||||||
Company’s ownership interest percentage | 99.60% | 99.60% | 93.50% | |||||
Non-controlling ownership interest percentage | 0.40% | 0.40% | 6.50% | |||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 9,775,000 | 8,881,575 | 17,533,099 | 19,195,373 | 10,117,223 | |||
Restricted Performance-based Share Awards | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, conversion ratio | 1 | |||||||
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 | |||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Non-controlling common units in the operating partnership | 569,045 | 569,045 | 9,450,620 | |||||
Partnership Interest | ||||||||
Class of Stock [Line Items] | ||||||||
Company-owned common units in the operating partnership | 154,371,538 | 155,602,508 | 136,492,235 |
Equity - Common Stock Activity
Equity - Common Stock Activity (Details) - USD ($) | Mar. 08, 2018 | Mar. 03, 2017 | Jan. 10, 2017 | Nov. 28, 2016 | Jul. 21, 2016 | May 16, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||||||||
Partners' capital redeemed units | 8,881,575 | 17,533,099 | 19,195,373 | 10,117,223 | |||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 9,775,000 | 8,881,575 | 17,533,099 | 19,195,373 | 10,117,223 | ||||
Repayments of lines of credit | $ 255,000,000 | ||||||||
Proceeds from issuance of common stock, net | $ 0 | $ 647,382,000 | $ 1,449,581,000 | ||||||
Shares repurchased during period | 1,639,260 | ||||||||
Repurchase of common stock | $ 50,016,000 | ||||||||
ATM Program | |||||||||
Class of Stock [Line Items] | |||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 0 | 0 | 165,000 | ||||||
Number of share authorized, value | $ 125,000,000 | ||||||||
Proceeds from issuance of common stock, net | 20,100,000 | ||||||||
Stock repurchase program authorized | $ 250,000,000 | ||||||||
Shares repurchased during period | 1,600,000 | ||||||||
Share repurchase program, weighted average price (in dollars per share) | $ 30.48 | ||||||||
Repurchase of common stock | $ 50,000,000 | ||||||||
ATM Program | Minimum | |||||||||
Class of Stock [Line Items] | |||||||||
Public offering price per share (in dollars per share) | $ 33.54 | ||||||||
ATM Program | Maximum | |||||||||
Class of Stock [Line Items] | |||||||||
Public offering price per share (in dollars per share) | $ 33.95 | ||||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 18,656,575 | 47,010,695 | |||||||
Repurchase of common stock | $ 16,000 | ||||||||
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 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | Dec. 17, 2018 | Sep. 18, 2018 | Jun. 19, 2018 | Mar. 19, 2018 | Dec. 18, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||||||
Common stock, dividends declared (in dollars per share) | $ 1 | $ 1 | $ 0.80 | |||||
Common units, dividends declared (in dollars per share) | 1 | 1 | 0.80 | |||||
Common stock, distributions per share (in dollars per share) | $ 0.25000 | $ 0.25000 | $ 0.25000 | $ 0.25000 | $ 1 | |||
Common stock, dividends | 100.00% | |||||||
Common stock, percentage classified as ordinary dividends | 60.45% | |||||||
Common stock, percentage classified as capital gain distribution | 30.38% | |||||||
Common stock, percentage classified as return of capital | 9.17% | |||||||
Common stock, capital gain distribution, unrecaptured 1250 gain | $ 0.02240 | |||||||
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividends declared (in dollars per share) | 1.5625 | $ 1.5625 | $ 1.5625 | |||||
Oridnary Dividends | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, distributions per share (in dollars per share) | 0.15113 | 0.15113 | 0.15113 | 0.15113 | 0.60452 | |||
Non-Qualified Ordinary Dividends | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, distributions per share (in dollars per share) | 0.15113 | 0.15113 | 0.15113 | 0.15113 | 0.60452 | |||
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) | 0.07595 | 0.07595 | 0.07595 | 0.07595 | $ 0.07595 | 0.30380 | ||
Return of Capital Dividend | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, distributions per share (in dollars per share) | $ 0.02292 | $ 0.02292 | $ 0.02292 | $ 0.02292 | $ 0.09168 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Revenues | $ 198,433 | $ 180,698 | $ 175,169 | $ 174,118 | $ 189,333 | $ 190,021 | $ 180,500 | $ 168,285 | $ 728,418 | $ 728,139 | $ 639,639 |
Operating Expenses | 157,021 | 144,310 | 139,388 | 139,021 | 145,501 | 153,861 | 152,392 | 139,782 | (579,740) | (591,536) | (550,232) |
General and administrative | (61,027) | (54,459) | (52,400) | ||||||||
Depreciation and amortization | (251,003) | (283,570) | (269,087) | ||||||||
Interest Expense | (83,167) | (90,037) | (76,044) | ||||||||
Interest income | 1,718 | 97 | 260 | ||||||||
Unrealized gain on non-real estate investment | (928) | 0 | 0 | ||||||||
Unrealized gain on non-real estate investment | 0 | (70) | (1,436) | ||||||||
Transaction-related expenses | (535) | (598) | (376) | ||||||||
Other expense | (822) | (2,992) | (1,558) | ||||||||
Gains on sale of real estate | 43,337 | 45,574 | 30,389 | ||||||||
NET INCOME (LOSS) | $ 19,257 | $ 20,270 | $ 19,691 | $ 52,563 | $ 48,944 | $ 14,510 | $ 6,954 | $ 24,153 | 111,781 | 94,561 | 43,758 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 728,418 | 728,139 | 639,639 | ||||||||
Operating Expenses | (267,710) | (253,507) | (228,745) | ||||||||
Total Segment Profit | 460,708 | 474,632 | 410,894 | ||||||||
Office | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 652,517 | 667,110 | 593,236 | ||||||||
Operating Expenses | (226,820) | (218,873) | (202,935) | ||||||||
Total Segment Profit | 425,697 | 448,237 | 390,301 | ||||||||
Studio Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 75,901 | 61,029 | 46,403 | ||||||||
Operating Expenses | (40,890) | (34,634) | (25,810) | ||||||||
Total Segment Profit | $ 35,011 | $ 26,395 | $ 20,593 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | Oct. 09, 2018USD ($) | Mar. 03, 2017shares | Feb. 14, 2017USD ($) | Jan. 10, 2017USD ($)shares | Nov. 28, 2016shares | Jul. 21, 2016shares | Jul. 01, 2016USD ($) | May 16, 2016shares | Apr. 01, 2015USD ($)ft²propertyprojectdirectorshares | Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Nov. 16, 2017USD ($) | Dec. 16, 2015ft² | Sep. 01, 2015ft² |
Related Party Transaction [Line Items] | |||||||||||||||
Consideration transferred for asset acquisition | $ 663,615 | ||||||||||||||
Proceeds from sale of real estate | $ 454,542 | $ 212,250 | $ 372,302 | ||||||||||||
Net rentable area (in square feet) | ft² | 15,077,804 | ||||||||||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 9,775,000 | 8,881,575 | 17,533,099 | 19,195,373 | 10,117,223 | ||||||||||
Proceeds from issuance of common stock, net | $ 0 | 647,382 | $ 1,449,581 | ||||||||||||
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 | 18,673,808 | ||||||||||||||
Proceeds from issuance of common stock, net | $ 342,700 | ||||||||||||||
Selling Stockholders | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 9,792,233 | ||||||||||||||
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 | $ 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 | ||||||||||||||
Lease term | 8 years | ||||||||||||||
Annualized rent payment | $ 279 | ||||||||||||||
Ferry Building Property | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Consideration transferred for asset acquisition | $ 291,000 | ||||||||||||||
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 | ||||||||||||||
222 Kearny Street | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Proceeds from sale of real estate | $ 51,800 | ||||||||||||||
Blackstone Real Estate Partners | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Area of leased real estate (in square feet) | ft² | 42,370 | 40,120 | |||||||||||||
Operating lease, renewal term | 3 years | ||||||||||||||
Total term of lease | 10 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Oct. 05, 2018 | Dec. 31, 2018 |
Loss Contingencies | ||
Commitment to fund amount | $ 20,000,000 | |
Revolving Credit Facility | Unsecured Debt | ||
Loss Contingencies | ||
Letters of credit outstanding | $ 2,600,000 | |
Geographic Concentration Risk | California | ||
Loss Contingencies | ||
Contribution risk, percentage | 90.10% | |
Customer Concentration Risk | Rentable Square Feet | ||
Loss Contingencies | ||
Contribution risk, percentage | 29.10% | |
Customer Concentration Risk | Rentable Square Feet | Media And Entertainment Sector | ||
Loss Contingencies | ||
Contribution risk, percentage | 19.60% | |
Customer Concentration Risk | Rentable Square Feet | Technology Sector | ||
Loss Contingencies | ||
Contribution risk, percentage | 30.20% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Significant Noncash Transactions [Line Items] | |||
Proceeds from sale of real estate | $ 0 | $ 216,000 | $ 0 |
Hudson Pacific Partners, L.P. | |||
Other Significant Noncash Transactions [Line Items] | |||
Cash paid for interest, net of capitalized interest | 78,495 | 77,234 | 82,491 |
Accounts payable and accrued liabilities for real estate investments | (13,431) | (19,587) | (37,364) |
Reclassification of investment in unconsolidated entities for real estate investments | 0 | 7,835 | 0 |
Assumption of debt in connection with property acquisitions | 139,003 | 0 | 0 |
Redeemable non-controlling interest in consolidated real estate entities | 12,749 | 0 | 0 |
Relief of debt in conjunction with sale of real estate | $ 0 | $ (216,000) | $ 0 |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 198,433 | $ 180,698 | $ 175,169 | $ 174,118 | $ 189,333 | $ 190,021 | $ 180,500 | $ 168,285 | $ 728,418 | $ 728,139 | $ 639,639 |
Total operating expense | (157,021) | (144,310) | (139,388) | (139,021) | (145,501) | (153,861) | (152,392) | (139,782) | 579,740 | 591,536 | 550,232 |
Net income | 19,257 | 20,270 | 19,691 | 52,563 | 48,944 | 14,510 | 6,954 | 24,153 | $ 111,781 | $ 94,561 | $ 43,758 |
Net income attributable to the Company’s stockholders | $ 15,944 | $ 17,367 | $ 16,202 | $ 48,577 | $ 32,455 | $ 11,064 | $ 3,553 | $ 20,515 | |||
Net income attributable to common stockholders' per share - basic (in dollars per share) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.63 | $ 0.44 | $ 0.26 |
Net income attributable to common stockholders' per share - diluted (in dollars per share) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.21 | $ 0.07 | $ 0.02 | $ 0.14 | $ 0.63 | $ 0.44 | $ 0.25 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) | Feb. 12, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||
Performance period (in years) | 3 years | |
Mandatory holding period upon vesting | 4 years | |
Subsequent Event | Outperformance Program 2019 | ||
Subsequent Event [Line Items] | ||
Maximum bonus pool | $ 28,000,000 | |
TSR, absolute hurdle rate | 3.00% | |
TSR, absolute hurdle rate, percent of performance in excess of hurdle rate | 7.00% | |
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 | $ 3,971,000 | |
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 2019 | 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 2019 | 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 2019 | Victor J. Coleman | ||
Subsequent Event [Line Items] | ||
TSR, award percentage | 24.00% | |
Subsequent Event | Outperformance Program 2019 | Mark T. Lammas | ||
Subsequent Event [Line Items] | ||
TSR, award percentage | 13.75% | |
Subsequent Event | Outperformance Program 2019 | Alex Vouvalides | ||
Subsequent Event [Line Items] | ||
TSR, award percentage | 9.15% | |
Subsequent Event | Outperformance Program 2019 | Christopher Barton | ||
Subsequent Event [Line Items] | ||
TSR, award percentage | 6.40% | |
Subsequent Event | Outperformance Program 2019 | Josh Hatfield | ||
Subsequent Event [Line Items] | ||
TSR, award percentage | 6.40% |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 365,381 | ||
Land | 1,372,872 | ||
Building & Improvements | 4,425,167 | ||
Improvements | 1,207,191 | ||
Carrying Costs | 54,307 | ||
Land | 1,372,872 | ||
Building & Improvements | 5,686,665 | ||
Total | 7,059,537 | ||
Accumulated depreciation | (695,631) | $ (521,370) | $ (375,207) |
Notes payable | 2,640,381 | 2,439,311 | |
Real estate, federal income tax basis | $ 6,500,000 | ||
Building and improvements | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Estimated useful life | 39 years | ||
Land improvements | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Estimated useful life | 15 years | ||
Unsecured Debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | $ 2,275,000 | 1,975,000 | |
Unsecured Debt | Hudson Pacific Partners, L.P. | Revolving Credit Facility | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 400,000 | ||
Unsecured Debt | Unsecured Revolving Credit Facility | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 400,000 | 100,000 | |
In-Substance Defeased Debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 138,223 | $ 0 | |
Office Building | 875 Howard Street Property | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 18,058 | ||
Building & Improvements | 41,046 | ||
Improvements | 20,353 | ||
Carrying Costs | 1,936 | ||
Land | 18,058 | ||
Building & Improvements | 63,335 | ||
Total | 81,393 | ||
Accumulated depreciation | (17,001) | ||
Office Building | 6040 Sunset (formerly Technicolor Building) | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 6,599 | ||
Building & Improvements | 27,187 | ||
Improvements | 25,032 | ||
Carrying Costs | 3,088 | ||
Land | 6,599 | ||
Building & Improvements | 55,307 | ||
Total | 61,906 | ||
Accumulated depreciation | (21,694) | ||
Office Building | ICON, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 145,136 | ||
Carrying Costs | 5,497 | ||
Land | 0 | ||
Building & Improvements | 150,633 | ||
Total | 150,633 | ||
Accumulated depreciation | (10,677) | ||
Office Building | CUE, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 43,708 | ||
Carrying Costs | 1,716 | ||
Land | 0 | ||
Building & Improvements | 45,424 | ||
Total | 45,424 | ||
Accumulated depreciation | (1,477) | ||
Office Building | EPIC, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 84,887 | ||
Carrying Costs | 3,156 | ||
Land | 0 | ||
Building & Improvements | 88,043 | ||
Total | 88,043 | ||
Accumulated depreciation | 0 | ||
Office Building | Del Amo Office | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 18,000 | ||
Improvements | 2,513 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 20,513 | ||
Total | 20,513 | ||
Accumulated depreciation | (5,521) | ||
Office Building | 1455 Market | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 41,226 | ||
Building & Improvements | 34,990 | ||
Improvements | 87,437 | ||
Carrying Costs | 298 | ||
Land | 41,226 | ||
Building & Improvements | 122,725 | ||
Total | 163,951 | ||
Accumulated depreciation | (32,494) | ||
Office Building | Rincon Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 58,251 | ||
Building & Improvements | 110,656 | ||
Improvements | 35,151 | ||
Carrying Costs | 0 | ||
Land | 58,251 | ||
Building & Improvements | 145,807 | ||
Total | 204,058 | ||
Accumulated depreciation | (29,856) | ||
Office Building | 10950 Washington | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 26,880 | ||
Land | 17,979 | ||
Building & Improvements | 25,110 | ||
Improvements | 1,408 | ||
Carrying Costs | 0 | ||
Land | 17,979 | ||
Building & Improvements | 26,518 | ||
Total | 44,497 | ||
Accumulated depreciation | (5,879) | ||
Office Building | 604 Arizona | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 5,620 | ||
Building & Improvements | 14,745 | ||
Improvements | 3,895 | ||
Carrying Costs | 484 | ||
Land | 5,620 | ||
Building & Improvements | 19,124 | ||
Total | 24,744 | ||
Accumulated depreciation | (3,263) | ||
Office Building | 275 Brannan Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 4,187 | ||
Building & Improvements | 8,063 | ||
Improvements | 14,029 | ||
Carrying Costs | 1,115 | ||
Land | 4,187 | ||
Building & Improvements | 23,207 | ||
Total | 27,394 | ||
Accumulated depreciation | (7,732) | ||
Office Building | 625 Second Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 10,744 | ||
Building & Improvements | 42,650 | ||
Improvements | 2,790 | ||
Carrying Costs | 0 | ||
Land | 10,744 | ||
Building & Improvements | 45,440 | ||
Total | 56,184 | ||
Accumulated depreciation | (9,244) | ||
Office Building | 6922 Hollywood | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 16,608 | ||
Building & Improvements | 72,392 | ||
Improvements | 15,784 | ||
Carrying Costs | 0 | ||
Land | 16,608 | ||
Building & Improvements | 88,176 | ||
Total | 104,784 | ||
Accumulated depreciation | (15,347) | ||
Office Building | 10900 Washington | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 1,400 | ||
Building & Improvements | 1,200 | ||
Improvements | 736 | ||
Carrying Costs | 0 | ||
Land | 1,400 | ||
Building & Improvements | 1,936 | ||
Total | 3,336 | ||
Accumulated depreciation | (812) | ||
Office Building | 901 Market Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 17,882 | ||
Building & Improvements | 79,305 | ||
Improvements | 15,929 | ||
Carrying Costs | 0 | ||
Land | 17,882 | ||
Building & Improvements | 95,234 | ||
Total | 113,116 | ||
Accumulated depreciation | (18,353) | ||
Office Building | Element LA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 168,000 | ||
Land | 79,769 | ||
Building & Improvements | 19,755 | ||
Improvements | 85,432 | ||
Carrying Costs | 10,391 | ||
Land | 79,769 | ||
Building & Improvements | 115,578 | ||
Total | 195,347 | ||
Accumulated depreciation | (13,949) | ||
Office Building | 3401 Exposition | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 14,120 | ||
Building & Improvements | 11,319 | ||
Improvements | 11,044 | ||
Carrying Costs | 1,028 | ||
Land | 14,120 | ||
Building & Improvements | 23,391 | ||
Total | 37,511 | ||
Accumulated depreciation | (3,789) | ||
Office Building | 505 First | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 22,917 | ||
Building & Improvements | 133,034 | ||
Improvements | 4,383 | ||
Carrying Costs | 0 | ||
Land | 22,917 | ||
Building & Improvements | 137,417 | ||
Total | 160,334 | ||
Accumulated depreciation | (22,173) | ||
Office Building | 83 King | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 12,982 | ||
Building & Improvements | 51,403 | ||
Improvements | 7,634 | ||
Carrying Costs | 0 | ||
Land | 12,982 | ||
Building & Improvements | 59,037 | ||
Total | 72,019 | ||
Accumulated depreciation | (9,972) | ||
Office Building | Met Park North | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 64,500 | ||
Land | 28,996 | ||
Building & Improvements | 71,768 | ||
Improvements | 730 | ||
Carrying Costs | 0 | ||
Land | 28,996 | ||
Building & Improvements | 72,498 | ||
Total | 101,494 | ||
Accumulated depreciation | (12,357) | ||
Office Building | Northview Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 4,803 | ||
Building & Improvements | 41,191 | ||
Improvements | 1,945 | ||
Carrying Costs | 0 | ||
Land | 4,803 | ||
Building & Improvements | 43,136 | ||
Total | 47,939 | ||
Accumulated depreciation | (7,379) | ||
Office Building | 411 First , Greater Seattle, WA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 27,684 | ||
Building & Improvements | 29,824 | ||
Improvements | 15,462 | ||
Carrying Costs | 0 | ||
Land | 27,684 | ||
Building & Improvements | 45,286 | ||
Total | 72,970 | ||
Accumulated depreciation | (7,552) | ||
Office Building | 450 Alaskan | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 81,250 | ||
Carrying Costs | 3,391 | ||
Land | 0 | ||
Building & Improvements | 84,641 | ||
Total | 84,641 | ||
Accumulated depreciation | (2,522) | ||
Office Building | 95 Jackson, Greater Seattle, WA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 16,738 | ||
Land | 0 | ||
Building & Improvements | 17,840 | ||
Total | 17,840 | ||
Accumulated depreciation | (799) | ||
Office Building | Palo Alto Square | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 326,033 | ||
Improvements | 31,399 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 357,432 | ||
Total | 357,432 | ||
Accumulated depreciation | (45,678) | ||
Office Building | 3400 Hillview | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 159,641 | ||
Improvements | 2,514 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 162,155 | ||
Total | 162,155 | ||
Accumulated depreciation | (27,367) | ||
Office Building | Foothill Research Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 133,994 | ||
Improvements | 2,349 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 136,343 | ||
Total | 136,343 | ||
Accumulated depreciation | (22,236) | ||
Office Building | Page Mill Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 147,625 | ||
Improvements | 6,927 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 154,552 | ||
Total | 154,552 | ||
Accumulated depreciation | (26,855) | ||
Office Building | Clocktower Square | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 93,949 | ||
Improvements | 3,369 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 97,318 | ||
Total | 97,318 | ||
Accumulated depreciation | (9,295) | ||
Office Building | 3176 Porter | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 34,561 | ||
Improvements | 676 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 35,237 | ||
Total | 35,237 | ||
Accumulated depreciation | (5,195) | ||
Office Building | Towers at Shore Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 72,673 | ||
Building & Improvements | 144,188 | ||
Improvements | 12,825 | ||
Carrying Costs | 0 | ||
Land | 72,673 | ||
Building & Improvements | 157,013 | ||
Total | 229,686 | ||
Accumulated depreciation | (18,271) | ||
Office Building | Skyway Landing | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 37,959 | ||
Building & Improvements | 63,559 | ||
Improvements | 3,818 | ||
Carrying Costs | 0 | ||
Land | 37,959 | ||
Building & Improvements | 67,377 | ||
Total | 105,336 | ||
Accumulated depreciation | (8,662) | ||
Office Building | Shorebreeze | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 69,448 | ||
Building & Improvements | 59,806 | ||
Improvements | 12,145 | ||
Carrying Costs | 0 | ||
Land | 69,448 | ||
Building & Improvements | 71,951 | ||
Total | 141,399 | ||
Accumulated depreciation | (8,870) | ||
Office Building | 555 Twin Dolphin | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 40,614 | ||
Building & Improvements | 73,457 | ||
Improvements | 5,960 | ||
Carrying Costs | 0 | ||
Land | 40,614 | ||
Building & Improvements | 79,417 | ||
Total | 120,031 | ||
Accumulated depreciation | (9,064) | ||
Office Building | 333 Twin Dolphin | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 36,441 | ||
Building & Improvements | 64,892 | ||
Improvements | 11,500 | ||
Carrying Costs | 0 | ||
Land | 36,441 | ||
Building & Improvements | 76,392 | ||
Total | 112,833 | ||
Accumulated depreciation | (9,089) | ||
Office Building | Metro Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 313,683 | ||
Improvements | 50,740 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 364,423 | ||
Total | 364,423 | ||
Accumulated depreciation | (43,568) | ||
Office Building | Concourse | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 45,085 | ||
Building & Improvements | 224,271 | ||
Improvements | 22,919 | ||
Carrying Costs | 0 | ||
Land | 45,085 | ||
Building & Improvements | 247,190 | ||
Total | 292,275 | ||
Accumulated depreciation | (31,641) | ||
Office Building | Gateway | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 33,117 | ||
Building & Improvements | 121,217 | ||
Improvements | 39,312 | ||
Carrying Costs | 0 | ||
Land | 33,117 | ||
Building & Improvements | 160,529 | ||
Total | 193,646 | ||
Accumulated depreciation | (20,863) | ||
Office Building | Metro Plaza | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 16,038 | ||
Building & Improvements | 106,156 | ||
Improvements | 18,254 | ||
Carrying Costs | 0 | ||
Land | 16,038 | ||
Building & Improvements | 124,410 | ||
Total | 140,448 | ||
Accumulated depreciation | (13,789) | ||
Office Building | 1740 Technology | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 8,052 | ||
Building & Improvements | 49,486 | ||
Improvements | 2,391 | ||
Carrying Costs | 0 | ||
Land | 8,052 | ||
Building & Improvements | 51,877 | ||
Total | 59,929 | ||
Accumulated depreciation | (5,549) | ||
Office Building | Skyport Plaza | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 16,521 | ||
Building & Improvements | 153,844 | ||
Improvements | (3,226) | ||
Carrying Costs | 0 | ||
Land | 16,521 | ||
Building & Improvements | 150,618 | ||
Total | 167,139 | ||
Accumulated depreciation | (14,540) | ||
Office Building | Cloud10 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Land | 12,512 | ||
Building & Improvements | 0 | ||
Improvements | 77 | ||
Carrying Costs | 0 | ||
Land | 12,512 | ||
Building & Improvements | 254 | ||
Total | 12,766 | ||
Office Building | Techmart Commerce Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 66,660 | ||
Improvements | 16,143 | ||
Land | 0 | ||
Building & Improvements | 82,803 | ||
Total | 82,803 | ||
Accumulated depreciation | (11,525) | ||
Office Building | Campus Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 29,636 | ||
Building & Improvements | 79,604 | ||
Improvements | 12,118 | ||
Carrying Costs | 4,158 | ||
Land | 29,636 | ||
Building & Improvements | 95,880 | ||
Total | 125,516 | ||
Accumulated depreciation | (5,916) | ||
Office Building | Campus Center - Development | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | |||
Land | 29,824 | ||
Building & Improvements | 0 | ||
Improvements | 513 | ||
Carrying Costs | 6,365 | ||
Land | 29,824 | ||
Building & Improvements | 513 | ||
Total | 30,337 | ||
Office Building | 4th and Traction | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 12,140 | ||
Building & Improvements | 37,110 | ||
Improvements | 42,248 | ||
Carrying Costs | 7,881 | ||
Land | 12,140 | ||
Building & Improvements | 87,239 | ||
Total | 99,379 | ||
Accumulated depreciation | (1,642) | ||
Office Building | MaxWell | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 13,040 | ||
Building & Improvements | 26,960 | ||
Improvements | 35,259 | ||
Land | 13,040 | ||
Building & Improvements | 68,584 | ||
Total | 81,624 | ||
Accumulated depreciation | 0 | ||
Office Building | 11601 Wilshire | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 28,978 | ||
Building & Improvements | 321,273 | ||
Improvements | 33,293 | ||
Carrying Costs | 0 | ||
Land | 28,978 | ||
Building & Improvements | 354,566 | ||
Total | 383,544 | ||
Accumulated depreciation | (26,049) | ||
Office Building | Hill7 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 101,000 | ||
Land | 36,888 | ||
Building & Improvements | 137,079 | ||
Improvements | 16,540 | ||
Carrying Costs | 0 | ||
Land | 36,888 | ||
Building & Improvements | 153,619 | ||
Total | 190,507 | ||
Accumulated depreciation | (10,756) | ||
Office Building | Page Mill Hill | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 131,402 | ||
Improvements | 5,996 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 137,398 | ||
Total | 137,398 | ||
Accumulated depreciation | (9,904) | ||
Office Building | Harlow, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 0 | ||
Improvements | 23,794 | ||
Carrying Costs | 741 | ||
Land | 0 | ||
Building & Improvements | 24,535 | ||
Total | 24,535 | ||
Accumulated depreciation | 0 | ||
Office Building | One Westside, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 110,438 | ||
Building & Improvements | 35,011 | ||
Improvements | 8,224 | ||
Carrying Costs | 1,019 | ||
Land | 110,438 | ||
Building & Improvements | 44,254 | ||
Total | 154,692 | ||
Accumulated depreciation | (680) | ||
Office Building | 10850 Pico, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 34,682 | ||
Building & Improvements | 16,313 | ||
Improvements | (2,604) | ||
Carrying Costs | 0 | ||
Land | 34,682 | ||
Building & Improvements | 13,709 | ||
Total | 48,391 | ||
Accumulated depreciation | (243) | ||
Office Building | Ferry Building | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 0 | ||
Building & Improvements | 268,292 | ||
Improvements | 2,066 | ||
Carrying Costs | 0 | ||
Land | 0 | ||
Building & Improvements | 270,358 | ||
Total | 270,358 | ||
Accumulated depreciation | (2,230) | ||
Media & Entertainment | Sunset Gower Studios | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 5,001 | ||
Land | 79,320 | ||
Building & Improvements | 64,697 | ||
Improvements | 35,709 | ||
Carrying Costs | 342 | ||
Land | 79,320 | ||
Building & Improvements | 100,748 | ||
Total | 180,068 | ||
Accumulated depreciation | (26,646) | ||
Media & Entertainment | Sunset Bronson | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 77,698 | ||
Building & Improvements | 32,374 | ||
Improvements | 28,831 | ||
Carrying Costs | 422 | ||
Land | 77,698 | ||
Building & Improvements | 61,627 | ||
Total | 139,325 | ||
Accumulated depreciation | (14,275) | ||
Media & Entertainment | Sunset Las Palmas Studios | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Land | 141,943 | ||
Building & Improvements | 104,392 | ||
Improvements | 1,706 | ||
Carrying Costs | 0 | ||
Land | 141,943 | ||
Building & Improvements | 106,098 | ||
Total | 248,041 | ||
Accumulated depreciation | $ (5,391) |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Carrying Amount of Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Beginning balance | $ 6,644,249 | $ 6,507,484 | $ 5,976,526 |
Acquisitions | 505,257 | 255,848 | 597,751 |
Improvements, capitalized costs | 364,721 | 330,809 | 296,399 |
Total additions during period | 869,978 | 586,657 | 894,150 |
Disposal (fully depreciated assets and early terminations) | (27,821) | (41,337) | (27,451) |
Cost of property sold | (426,869) | (408,555) | (335,741) |
Total deductions during period | (454,690) | (449,892) | (363,192) |
Ending balance | 7,059,537 | 6,644,249 | 6,507,484 |
Reclassification to assets associated with real estate held for sale | 0 | (424,888) | (629,004) |
Total investment in real estate, end of year | 7,059,537 | 6,219,361 | 5,878,480 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Total accumulated depreciation, beginning of year | (549,411) | (423,950) | (272,724) |
Depreciation of real estate | (203,347) | (206,838) | (182,219) |
Total additions during period | 203,347 | 206,838 | 182,219 |
Deletions | 27,410 | 37,925 | 25,622 |
Write-offs due to sale | 29,717 | 43,452 | 5,371 |
Total deductions during period | 57,127 | 81,377 | 30,993 |
Ending balance, before reclassification to assets associated with real estate held for sale | (695,631) | (549,411) | (423,950) |
Ending balance, before reclassification to assets associated with real estate held for sale | (695,631) | (549,411) | (423,950) |
Reclassification to assets associated with real estate held for sale | 0 | 28,041 | 48,743 |
Total accumulated depreciation, end of year | $ (695,631) | $ (521,370) | $ (375,207) |