Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-34789 | |
Entity Registrant Name | Hudson Pacific Properties, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-1430478 | |
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 310 | |
Local Phone Number | 445-5700 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | HPP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 152,477,830 | |
Entity Central Index Key | 0001482512 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Hudson Pacific Partners L.P. | ||
Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-202799-01 | |
Entity Registrant Name | Hudson Pacific Properties, L.P. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 80-0579682 | |
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 310 | |
Local Phone Number | 445-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001496264 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Investment in real estate, at cost | $ 8,381,071 | $ 8,215,017 |
Accumulated depreciation and amortization | (1,224,337) | (1,102,748) |
Investment in real estate, net | 7,156,734 | 7,112,269 |
Cash and cash equivalents | 110,978 | 113,686 |
Restricted cash | 33,967 | 35,854 |
Accounts receivable, net | 16,391 | 22,105 |
Straight-line rent receivables, net | 238,799 | 225,685 |
Deferred leasing costs and lease intangible assets, net | 271,201 | 285,836 |
U.S. Government securities | 132,222 | 135,115 |
Operating lease right-of-use assets | 268,537 | 264,880 |
Prepaid expenses and other assets, net | 111,087 | 72,667 |
Investment in unconsolidated real estate entities | 85,736 | 82,105 |
TOTAL ASSETS | 8,425,652 | 8,350,202 |
LIABILITIES AND EQUITY | ||
Accounts payable, accrued liabilities and other | 253,271 | 235,860 |
Operating lease liabilities | 274,408 | 270,014 |
Lease intangible liabilities, net | 43,364 | 49,144 |
Security deposits and prepaid rent | 84,393 | 92,180 |
TOTAL LIABILITIES | 4,342,586 | 4,244,533 |
Commitments and contingencies (note 20) | ||
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 127,445 | 127,874 |
Hudson Pacific Properties, Inc. stockholders’ equity | ||
Common stock, $0.01 par value, 490,000,000 authorized, 152,319,084 shares and 151,401,365 shares outstanding at June 30, 2021 and December 31, 2020, respectively | 1,523 | 1,514 |
Additional paid-in capital | 3,435,156 | 3,469,758 |
Accumulated other comprehensive loss | (2,736) | (8,133) |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,433,943 | 3,463,139 |
Hudson Pacific Properties, L.P. partners’ capital | ||
TOTAL CAPITAL | 3,945,806 | 3,967,980 |
TOTAL LIABILITIES AND CAPITAL | 8,425,652 | 8,350,202 |
Hudson Pacific Partners L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 8,381,071 | 8,215,017 |
Accumulated depreciation and amortization | (1,224,337) | (1,102,748) |
Investment in real estate, net | 7,156,734 | 7,112,269 |
Cash and cash equivalents | 110,978 | 113,686 |
Restricted cash | 33,967 | 35,854 |
Accounts receivable, net | 16,391 | 22,105 |
Straight-line rent receivables, net | 238,799 | 225,685 |
Deferred leasing costs and lease intangible assets, net | 271,201 | 285,836 |
U.S. Government securities | 132,222 | 135,115 |
Operating lease right-of-use assets | 268,537 | 264,880 |
Prepaid expenses and other assets, net | 111,087 | 72,667 |
Investment in unconsolidated real estate entities | 85,736 | 82,105 |
TOTAL ASSETS | 8,425,652 | 8,350,202 |
LIABILITIES AND EQUITY | ||
Accounts payable, accrued liabilities and other | 253,271 | 235,860 |
Operating lease liabilities | 274,408 | 270,014 |
Lease intangible liabilities, net | 43,364 | 49,144 |
Security deposits and prepaid rent | 84,393 | 92,180 |
TOTAL LIABILITIES | 4,342,586 | 4,244,533 |
Commitments and contingencies (note 20) | ||
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 127,445 | 127,874 |
Hudson Pacific Properties, Inc. stockholders’ equity | ||
Accumulated other comprehensive loss | (2,776) | (8,246) |
Hudson Pacific Properties, L.P. partners’ capital | ||
Limited partners' capital account | 3,481,106 | 3,509,217 |
Total Hudson Pacific Properties, L.P. partners’ capital | 3,478,330 | 3,500,971 |
Non-controlling interest—members in consolidated real estate entities | 467,476 | 467,009 |
Total capital | 3,945,806 | 3,967,980 |
TOTAL LIABILITIES AND CAPITAL | 8,425,652 | 8,350,202 |
Non-controlling interest—members in consolidated real estate entities | ||
Hudson Pacific Properties, L.P. partners’ capital | ||
Non-controlling interest—members in consolidated entities and non-controlling units in the operating partnership | 467,476 | 467,009 |
Non-controlling interest—units in the operating partnership | ||
Hudson Pacific Properties, L.P. partners’ capital | ||
Non-controlling interest—members in consolidated entities and non-controlling units in the operating partnership | 44,387 | 37,832 |
TOTAL CAPITAL | 44,387 | 37,832 |
Unsecured and secured debt, net | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 3,491,043 | 3,399,492 |
Unsecured and secured debt, net | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 3,491,043 | 3,399,492 |
In-substance defeased debt | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 129,971 | 131,707 |
In-substance defeased debt | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 129,971 | 131,707 |
Joint venture partner debt | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 66,136 | 66,136 |
Joint venture partner debt | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | $ 66,136 | $ 66,136 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 490,000,000 | 490,000,000 |
Common stock/units, outstanding (in shares) | 152,319,084 | 151,401,365 |
Hudson Pacific Partners L.P. | ||
Common Stock: | ||
Common stock/units, outstanding (in shares) | 153,700,708 | 152,722,448 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Total revenues | $ 215,602 | $ 198,610 | $ 428,721 | $ 404,837 |
OPERATING EXPENSES | ||||
Operating expenses | 81,577 | 72,562 | 159,592 | 147,072 |
General and administrative | 17,109 | 17,897 | 35,558 | 36,515 |
Depreciation and amortization | 84,178 | 73,516 | 166,939 | 147,279 |
Total operating expenses | 182,864 | 163,975 | 362,089 | 330,866 |
OTHER INCOME (EXPENSE) | ||||
Income from unconsolidated real estate entities | 470 | 410 | 1,105 | 174 |
Fee income | 797 | 556 | 1,645 | 1,166 |
Interest expense | (30,689) | (27,930) | (60,975) | (54,347) |
Interest income | 937 | 1,048 | 1,934 | 2,073 |
Management services reimbursement income—unconsolidated real estate entities | 626 | 0 | 626 | 0 |
Management services expense—unconsolidated real estate entities | (626) | 0 | (626) | 0 |
Transaction-related expenses | (1,064) | (157) | (1,064) | (259) |
Unrealized gain (loss) on non-real estate investments | 5,018 | (2,267) | 10,793 | (2,848) |
Other (expense) income | (1,177) | 716 | (1,629) | 1,030 |
Total other expense | (25,708) | (27,624) | (48,191) | (53,011) |
Net income | 7,030 | 7,011 | 18,441 | 20,960 |
Net income attributable to preferred units | (153) | (153) | (306) | (306) |
Net income attributable to participating securities | (276) | (10) | (554) | (39) |
Net income attributable to non-controlling interest in consolidated real estate entities | (5,549) | (3,890) | (12,179) | (7,407) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 1,282 | 770 | 1,964 | 1,403 |
Net income attributable to non-controlling interest in the operating partnership | (19) | (37) | (69) | (143) |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 2,315 | $ 3,691 | $ 7,297 | $ 14,468 |
BASIC AND DILUTED PER SHARE AMOUNTS | ||||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Weighted average shares of common stock outstanding—basic (in shares) | 151,169,612 | 153,306,976 | 150,997,564 | 153,869,789 |
Weighted average shares of common stock outstanding—diluted | 152,683,463 | 155,621,513 | 151,302,845 | 156,515,326 |
Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
Total revenues | $ 215,602 | $ 198,610 | $ 428,721 | $ 404,837 |
OPERATING EXPENSES | ||||
General and administrative | 17,109 | 17,897 | 35,558 | 36,515 |
Depreciation and amortization | 84,178 | 73,516 | 166,939 | 147,279 |
Total operating expenses | 182,864 | 163,975 | 362,089 | 330,866 |
OTHER INCOME (EXPENSE) | ||||
Income from unconsolidated real estate entities | 470 | 410 | 1,105 | 174 |
Fee income | 797 | 556 | 1,645 | 1,166 |
Interest expense | (30,689) | (27,930) | (60,975) | (54,347) |
Interest income | 937 | 1,048 | 1,934 | 2,073 |
Management services reimbursement income—unconsolidated real estate entities | 626 | 0 | 626 | 0 |
Management services expense—unconsolidated real estate entities | (626) | 0 | (626) | 0 |
Transaction-related expenses | (1,064) | (157) | (1,064) | (259) |
Unrealized gain (loss) on non-real estate investments | 5,018 | (2,267) | 10,793 | (2,848) |
Other (expense) income | (1,177) | 716 | (1,629) | 1,030 |
Total other expense | (25,708) | (27,624) | (48,191) | (53,011) |
Net income | 7,030 | 7,011 | 18,441 | 20,960 |
Net income attributable to preferred units | (153) | (153) | (306) | (306) |
Net income attributable to participating securities | (276) | (25) | (554) | (97) |
Net income attributable to non-controlling interest in consolidated real estate entities | (5,549) | (3,890) | (12,179) | (7,407) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 1,282 | 770 | 1,964 | 1,403 |
Net income attributable to Hudson Pacific Properties, L.P. | 2,763 | 3,891 | 8,226 | 14,956 |
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 2,334 | $ 3,713 | $ 7,366 | $ 14,553 |
BASIC AND DILUTED PER SHARE AMOUNTS | ||||
Net income attributable to common unitholders —basic (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Net income attributable to common unitholders —diluted (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Weighted average shares of common units outstanding—basic (in shares) | 152,551,236 | 154,218,834 | 152,369,823 | 154,781,647 |
Weighted average shares of common units outstanding—diluted (in shares) | 152,683,463 | 155,012,834 | 152,675,104 | 155,906,647 |
Office segment | ||||
REVENUES | ||||
Rental | $ 192,552 | $ 180,654 | $ 382,413 | $ 361,767 |
Service and other revenues | 3,151 | 3,654 | 5,433 | 8,968 |
Total revenues | 195,703 | 184,308 | 387,846 | 370,735 |
OPERATING EXPENSES | ||||
Operating expenses | 69,111 | 64,611 | 135,673 | 128,471 |
Office segment | Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
Rental | 192,552 | 180,654 | 382,413 | 361,767 |
Service and other revenues | 3,151 | 3,654 | 5,433 | 8,968 |
Total revenues | 195,703 | 184,308 | 387,846 | 370,735 |
OPERATING EXPENSES | ||||
Operating expenses | 69,111 | 64,611 | 135,673 | 128,471 |
Studio segment | ||||
REVENUES | ||||
Rental | 11,551 | 12,128 | 23,704 | 25,043 |
Service and other revenues | 8,348 | 2,174 | 17,171 | 9,059 |
Total revenues | 19,899 | 14,302 | 40,875 | 34,102 |
OPERATING EXPENSES | ||||
Operating expenses | 12,466 | 7,951 | 23,919 | 18,601 |
Studio segment | Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
Rental | 11,551 | 12,128 | 23,704 | 25,043 |
Service and other revenues | 8,348 | 2,174 | 17,171 | 9,059 |
Total revenues | 19,899 | 14,302 | 40,875 | 34,102 |
OPERATING EXPENSES | ||||
Operating expenses | $ 12,466 | $ 7,951 | $ 23,919 | $ 18,601 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net income | $ 7,030 | $ 7,011 | $ 18,441 | $ 20,960 |
Currency translation adjustments | 914 | 2,138 | 1,923 | (2,861) |
Net unrealized gains (losses) on derivative instruments: | ||||
Unrealized losses | (160) | (1,851) | (136) | (14,129) |
Reclassification adjustment for realized gains | 1,872 | 1,648 | 3,683 | 1,511 |
Total net unrealized gains (losses) on derivative instruments | 1,712 | (203) | 3,547 | (12,618) |
Total other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Comprehensive income | 9,656 | 8,946 | 23,911 | 5,481 |
Comprehensive income attributable to preferred units | (153) | (153) | (306) | (306) |
Comprehensive income attributable to participating securities | (276) | (10) | (554) | (39) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (5,549) | (3,890) | (12,179) | (7,407) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 1,282 | 770 | 1,964 | 1,403 |
Comprehensive (income) loss attributable to non-controlling interest in the operating partnership | (54) | (56) | (142) | 9 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | 4,906 | 5,607 | 12,694 | (859) |
Hudson Pacific Partners L.P. | ||||
Net income | 7,030 | 7,011 | 18,441 | 20,960 |
Currency translation adjustments | 914 | 2,138 | 1,923 | (2,861) |
Net unrealized gains (losses) on derivative instruments: | ||||
Unrealized losses | (160) | (1,851) | (136) | (14,129) |
Reclassification adjustment for realized gains | 1,872 | 1,648 | 3,683 | 1,511 |
Total net unrealized gains (losses) on derivative instruments | 1,712 | (203) | 3,547 | (12,618) |
Total other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Comprehensive income | 9,656 | 8,946 | 23,911 | 5,481 |
Comprehensive income attributable to preferred units | (153) | (153) | (306) | (306) |
Comprehensive income attributable to participating securities | (276) | (25) | (554) | (97) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (5,549) | (3,890) | (12,179) | (7,407) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 1,282 | 770 | 1,964 | 1,403 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 4,960 | $ 5,648 | $ 12,836 | $ (926) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Loss | Non- controlling Interest—Units in the Operating Partnership | Non-controlling Interest—Members in Consolidated Real Estate Entities |
Beginning balance at Dec. 31, 2019 | $ 3,709,362 | $ 1,546 | $ 3,415,808 | $ 0 | $ (561) | $ 23,082 | $ 269,487 |
Beginning balance (in shares) at Dec. 31, 2019 | 154,691,052 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions | (6,868) | (6,868) | |||||
Issuance of unrestricted stock | 0 | $ 3 | (3) | ||||
Issuance of unrestricted stock (in shares) | 179,005 | ||||||
Shares repurchased | (35,351) | $ (14) | (35,337) | ||||
Shares repurchased (in shares) | (1,414,007) | ||||||
Shares withheld to satisfy tax withholding obligations | (5,501) | $ (1) | (5,500) | ||||
Shares withheld to satisfy tax withholding obligation (in shares) | (136,717) | ||||||
Declared dividend | (77,773) | (62,366) | (14,507) | (900) | |||
Amortization of stock-based compensation | 11,184 | 4,590 | 6,594 | ||||
Net income | 22,057 | 14,507 | 143 | 7,407 | |||
Other comprehensive income (loss) | (15,479) | (15,327) | (152) | ||||
Ending balance at Jun. 30, 2020 | 3,601,631 | $ 1,534 | 3,317,192 | 0 | (15,888) | 28,767 | 270,026 |
Ending balance (in shares) at Jun. 30, 2020 | 153,319,333 | ||||||
Beginning balance at Mar. 31, 2020 | 3,629,754 | $ 1,533 | 3,349,706 | 0 | (17,804) | 26,083 | 270,236 |
Beginning balance (in shares) at Mar. 31, 2020 | 153,295,905 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions | (4,100) | (4,100) | |||||
Issuance of unrestricted stock | 0 | $ 1 | (1) | ||||
Issuance of unrestricted stock (in shares) | 23,428 | ||||||
Declared dividend | (38,890) | (34,739) | (3,701) | (450) | |||
Amortization of stock-based compensation | 5,304 | 2,226 | 3,078 | ||||
Net income | 7,628 | 3,701 | 37 | 3,890 | |||
Other comprehensive income (loss) | 1,935 | 1,916 | 19 | ||||
Ending balance at Jun. 30, 2020 | 3,601,631 | $ 1,534 | 3,317,192 | 0 | (15,888) | 28,767 | 270,026 |
Ending balance (in shares) at Jun. 30, 2020 | 153,319,333 | ||||||
Beginning balance at Dec. 31, 2020 | $ 3,967,980 | $ 1,514 | 3,469,758 | 0 | (8,133) | 37,832 | 467,009 |
Beginning balance (in shares) at Dec. 31, 2020 | 151,401,365 | 151,401,365 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Contributions | $ 15,016 | 15,016 | |||||
Distributions | (26,728) | (26,728) | |||||
Proceeds from sale of common stock, net of transaction costs | 44,820 | $ 15 | 44,805 | ||||
Proceeds from sale of common stock, net transaction costs (in shares) | 1,526,163 | ||||||
Issuance of unrestricted stock (in shares) | 53,246 | ||||||
Shares repurchased | (14,756) | $ (6) | (14,750) | ||||
Shares repurchased (in shares) | (632,109) | ||||||
Shares withheld to satisfy tax withholding obligations | (693) | (693) | |||||
Shares withheld to satisfy tax withholding obligation (in shares) | (29,581) | ||||||
Declared dividend | (77,168) | (68,189) | (7,851) | (1,128) | |||
Amortization of stock-based compensation | 11,766 | 4,225 | 7,541 | ||||
Net income | 20,099 | 7,851 | 69 | 12,179 | |||
Other comprehensive income (loss) | 5,470 | 5,397 | 73 | ||||
Ending balance at Jun. 30, 2021 | $ 3,945,806 | $ 1,523 | 3,435,156 | 0 | (2,736) | 44,387 | 467,476 |
Ending balance (in shares) at Jun. 30, 2021 | 152,319,084 | 152,319,084 | |||||
Beginning balance at Mar. 31, 2021 | $ 3,936,240 | $ 1,508 | 3,423,699 | 0 | (5,327) | 39,787 | 476,573 |
Beginning balance (in shares) at Mar. 31, 2021 | 150,760,631 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Distributions | (14,646) | (14,646) | |||||
Proceeds from sale of common stock, net of transaction costs | 44,820 | $ 15 | 44,805 | ||||
Proceeds from sale of common stock, net transaction costs (in shares) | 1,526,163 | ||||||
Issuance of unrestricted stock (in shares) | 33,246 | ||||||
Shares withheld to satisfy tax withholding obligation (in shares) | (956) | ||||||
Declared dividend | (38,742) | (35,591) | (2,591) | (560) | |||
Amortization of stock-based compensation | 7,349 | 2,243 | 5,106 | ||||
Net income | 8,159 | 2,591 | 19 | 5,549 | |||
Other comprehensive income (loss) | 2,626 | 2,591 | 35 | ||||
Ending balance at Jun. 30, 2021 | $ 3,945,806 | $ 1,523 | $ 3,435,156 | $ 0 | $ (2,736) | $ 44,387 | $ 467,476 |
Ending balance (in shares) at Jun. 30, 2021 | 152,319,084 | 152,319,084 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Increase (Decrease) in Partners' Capital | ||||
Beginning balance (in shares) | 151,401,365 | |||
Contributions | $ 15,016 | |||
Distributions | $ (14,646) | $ (4,100) | (26,728) | $ (6,868) |
Proceeds from sale of common stock, net of transaction costs | 44,820 | 44,820 | ||
Repurchase of common units | (14,756) | (35,351) | ||
Units withheld to satisfy tax withholding obligations | (693) | (5,501) | ||
Declared distributions | (38,742) | (38,890) | (77,168) | (77,773) |
Amortization of unit-based compensation | 7,349 | 5,304 | 11,766 | 11,184 |
Net income | 8,159 | 7,628 | 20,099 | 22,057 |
Other comprehensive income (loss) | $ 2,626 | 1,935 | $ 5,470 | (15,479) |
Ending balance (in shares) | 152,319,084 | 152,319,084 | ||
Hudson Pacific Partners L.P. | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ 3,936,240 | 3,629,754 | $ 3,967,980 | 3,709,362 |
Beginning balance (in shares) | 152,722,448 | |||
Contributions | $ 15,016 | |||
Distributions | (14,646) | (4,100) | (26,728) | (6,868) |
Proceeds from sale of common stock, net of transaction costs | 44,820 | 44,820 | ||
Repurchase of common units | (35,351) | |||
Units withheld to satisfy tax withholding obligations | (693) | (5,501) | ||
Declared distributions | (38,742) | (38,890) | (77,168) | (77,773) |
Amortization of unit-based compensation | 7,349 | 5,304 | 11,766 | 11,184 |
Net income | 8,159 | 7,628 | 20,099 | 22,057 |
Other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | $ 3,945,806 | 3,601,631 | $ 3,945,806 | 3,601,631 |
Ending balance (in shares) | 153,700,708 | 153,700,708 | ||
Hudson Pacific Partners L.P. | Total Partners’ Capital | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ 3,459,667 | 3,359,518 | $ 3,500,971 | 3,439,875 |
Proceeds from sale of common stock, net of transaction costs | 44,820 | 44,820 | ||
Repurchase of common units | (14,756) | (35,351) | ||
Units withheld to satisfy tax withholding obligations | (693) | (5,501) | ||
Declared distributions | (38,742) | (38,890) | (77,168) | (77,773) |
Amortization of unit-based compensation | 7,349 | 5,304 | 11,766 | 11,184 |
Net income | 2,610 | 3,738 | 7,920 | 14,650 |
Other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | 3,478,330 | 3,331,605 | 3,478,330 | 3,331,605 |
Hudson Pacific Partners L.P. | Common units | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ 3,465,069 | $ 3,377,545 | $ 3,509,217 | $ 3,440,488 |
Beginning balance (in shares) | 152,142,255 | 154,207,763 | 152,722,448 | 155,602,910 |
Proceeds from sale of common stock, net of transaction costs | $ 44,820 | $ 44,820 | ||
Proceeds from sale of common stock, net transaction costs (in shares) | 1,526,163 | 1,526,163 | ||
Issuance of unrestricted stock (in shares) | 33,246 | 23,428 | 113,787 | 179,005 |
Repurchase of common units | $ (14,756) | $ (35,351) | ||
Repurchase of common units (in shares) | (632,109) | (1,414,007) | ||
Units withheld to satisfy tax withholding obligations | $ (693) | $ (5,501) | ||
Units withheld to satisfy tax withholding obligations (in shares) | (956) | (29,581) | (136,717) | |
Declared distributions | $ (38,742) | $ (38,890) | $ (77,168) | $ (77,773) |
Amortization of unit-based compensation | 7,349 | 5,304 | 11,766 | 11,184 |
Net income | 2,610 | 3,738 | 7,920 | 14,650 |
Ending balance | $ 3,481,106 | $ 3,347,697 | $ 3,481,106 | $ 3,347,697 |
Ending balance (in shares) | 153,700,708 | 154,231,191 | 153,700,708 | 154,231,191 |
Hudson Pacific Partners L.P. | Accumulated Other Comprehensive Loss | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | $ (5,402) | $ (18,027) | $ (8,246) | $ (613) |
Other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | (2,776) | (16,092) | (2,776) | (16,092) |
Hudson Pacific Partners L.P. | Non-controlling Interest—Members in Consolidated Real Estate Entities | ||||
Increase (Decrease) in Partners' Capital | ||||
Beginning balance | 476,573 | 270,236 | 467,009 | 269,487 |
Contributions | 15,016 | |||
Distributions | (14,646) | (4,100) | (26,728) | (6,868) |
Net income | 5,549 | 3,890 | 12,179 | 7,407 |
Ending balance | $ 467,476 | $ 270,026 | $ 467,476 | $ 270,026 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 18,441 | $ 20,960 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 166,939 | 147,279 |
Non-cash portion of interest expense | 4,835 | 2,489 |
Amortization of stock-based compensation | 9,878 | 9,618 |
Income (loss) from unconsolidated real estate entities | (1,105) | (174) |
Unrealized (gain) loss on non-real estate investments | (10,793) | 2,848 |
Straight-line rents | (13,114) | (26,136) |
Straight-line rent expenses | 737 | 731 |
Amortization of above- and below-market leases, net | (5,258) | (5,007) |
Amortization of above- and below-market ground leases, net | 1,175 | 1,176 |
Amortization of lease incentive costs | 952 | 971 |
Distribution of income from unconsolidated entities | 872 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 5,624 | (1,244) |
Deferred leasing costs and lease intangibles | (8,867) | (8,093) |
Prepaid expenses and other assets | (14,899) | (14,090) |
Accounts payable, accrued liabilities and other | 25,301 | 16,911 |
Security deposits and prepaid rent | (7,787) | (10,755) |
Net cash provided by operating activities | 172,931 | 137,484 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment in real estate | (191,005) | (169,295) |
Maturities of U.S. Government securities | 2,889 | 2,825 |
Contributions to non-real estate investments | (8,514) | 0 |
Distributions from unconsolidated real estate entities | 908 | 73 |
Contributions to unconsolidated real estate entities | (8,325) | (461) |
Net cash used in investing activities | (204,047) | (166,858) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from unsecured and secured debt | 86,850 | 453,184 |
Payments of unsecured and secured debt | (313) | (300,294) |
Payments of in-substance defeased debt | (1,736) | (1,643) |
Proceeds from sale of common stock, net of transaction costs | 44,820 | 0 |
Repurchase of common stock | (14,756) | (35,351) |
Dividends paid to common stock and unitholders | (77,168) | (77,773) |
Dividends paid to preferred unitholders | (306) | (306) |
Contributions from redeemable non-controlling members in consolidated real estate entities | 1,543 | 2,551 |
Distribution of redeemable non-controlling members in consolidated real estate entities | (8) | (8) |
Contributions from non-controlling members in consolidated real estate entities | 15,016 | 0 |
Distributions to non-controlling members in consolidated real estate entities | (26,728) | (6,868) |
Payments to satisfy tax withholding obligations | (693) | (5,501) |
Payment of loan costs | 0 | (4) |
Net cash provided by financing activities | 26,521 | 27,987 |
Net decrease in cash and cash equivalents and restricted cash | (4,595) | (1,387) |
Cash and cash equivalents and restricted cash—beginning of period | 149,540 | 58,258 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | 144,945 | 56,871 |
Hudson Pacific Partners L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | 18,441 | 20,960 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 166,939 | 147,279 |
Non-cash portion of interest expense | 4,835 | 2,489 |
Amortization of stock-based compensation | 9,878 | 9,618 |
Income (loss) from unconsolidated real estate entities | (1,105) | (174) |
Unrealized (gain) loss on non-real estate investments | (10,793) | 2,848 |
Straight-line rents | (13,114) | (26,136) |
Straight-line rent expenses | 737 | 731 |
Amortization of above- and below-market leases, net | (5,258) | (5,007) |
Amortization of above- and below-market ground leases, net | 1,175 | 1,176 |
Amortization of lease incentive costs | 952 | 971 |
Distribution of income from unconsolidated entities | 872 | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable | 5,624 | (1,244) |
Deferred leasing costs and lease intangibles | (8,867) | (8,093) |
Prepaid expenses and other assets | (14,899) | (14,090) |
Accounts payable, accrued liabilities and other | 25,301 | 16,911 |
Security deposits and prepaid rent | (7,787) | (10,755) |
Net cash provided by operating activities | 172,931 | 137,484 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment in real estate | (191,005) | (169,295) |
Maturities of U.S. Government securities | 2,889 | 2,825 |
Contributions to non-real estate investments | (8,514) | 0 |
Distributions from unconsolidated real estate entities | 908 | 73 |
Contributions to unconsolidated real estate entities | (8,325) | (461) |
Net cash used in investing activities | (204,047) | (166,858) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from unsecured and secured debt | 86,850 | 453,184 |
Payments of unsecured and secured debt | (313) | (300,294) |
Payments of in-substance defeased debt | (1,736) | (1,643) |
Proceeds from sale of common stock, net of transaction costs | 44,820 | 0 |
Repurchase of common stock | (14,756) | (35,351) |
Dividends paid to common stock and unitholders | (77,168) | (77,773) |
Dividends paid to preferred unitholders | (306) | (306) |
Contributions from redeemable non-controlling members in consolidated real estate entities | 1,543 | 2,551 |
Distribution of redeemable non-controlling members in consolidated real estate entities | (8) | (8) |
Contributions from non-controlling members in consolidated real estate entities | 15,016 | 0 |
Distributions to non-controlling members in consolidated real estate entities | (26,728) | (6,868) |
Payments to satisfy tax withholding obligations | (693) | (5,501) |
Payment of loan costs | 0 | (4) |
Net cash provided by financing activities | 26,521 | 27,987 |
Net decrease in cash and cash equivalents and restricted cash | (4,595) | (1,387) |
Cash and cash equivalents and restricted cash—beginning of period | 149,540 | 58,258 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ 144,945 | $ 56,871 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2021 | |
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. The Company’s portfolio consists of properties located throughout Northern and Southern California, the Pacific Northwest and Western Canada. The following table summarizes the Company’s portfolio as of June 30, 2021: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 52 14,092,789 Studios 3 1,224,403 Land 6 2,504,406 Total consolidated portfolio 61 17,821,598 Unconsolidated portfolio (1) Office 1 1,491,858 Land 2 691,000 Total unconsolidated portfolio 3 2,182,858 TOTAL (2) 64 20,004,456 _________________ 1. Pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone 1 LP”), the Company owns 20% of the unconsolidated joint venture which owns the Bentall Centre property located in Vancouver, Canada. The Company also owns 50% of the unconsolidated joint venture entity which owns the Sunset Glenoaks Studios development. The square footage shown above represents 100% of the properties. See Note 4 for details. 2. Includes repositioning, redevelopment and development properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
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”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2020 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto. Principles of Consolidation The unaudited interim 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, the Company continually evaluates 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 June 30, 2021, the Company has determined that its operating partnership and 14 joint ventures met the definition of a VIE. 12 of these joint ventures are consolidated and two are unconsolidated. Consolidated Joint Ventures As of June 30, 2021, the operating partnership has determined that 12 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 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % Sunset Bronson Entertainment Properties, LLC Sunset Bronson Studios, ICON, CUE 51.0 % Sunset Gower Entertainment Properties, LLC Sunset Gower Studios 51.0 % Sunset Las Palmas Entertainment Properties, LLC Sunset Las Palmas Studios, Harlow 51.0 % Sunset Services Holdings, LLC None (1) 51.0 % Sunset Studios Holdings, LLC EPIC 51.0 % Hudson Media and Entertainment Management, LLC None (2) 51.0 % Hudson 6040 Sunset, LLC 6040 Sunset 51.0 % Hudson 1918 Eighth, L.P. 1918 Eighth 55.0 % __________________ 1. Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to the respective entertainment properties above. 2. Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). On November 22, 2020, the Company entered into a joint venture agreement with CPPIB US RE-3, Inc., a subsidiary of Canada Pension Plan Investment Board (“CPPIB”), to form Hudson 1918 Eighth, L.P. On December 18, 2020, the joint venture purchased the 1918 Eighth property through a wholly-owned subsidiary. The Company owns 55% of the joint venture. As of June 30, 2021, the Company has determined that this joint venture met the definition of a VIE and is consolidated. On July 30, 2020, funds affiliated with Blackstone Property Partners (“Blackstone”) acquired a 49% interest in the Company’s Hollywood Media Portfolio. The Company retained a 51% ownership stake and remains responsible for day-to-day operations, leasing and development. As of June 30, 2021, the Company has determined that the entities included in the Hollywood Media Portfolio and the related entities met the definition of a VIE and are consolidated. As of June 30, 2021 and December 31, 2020, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company. Unconsolidated Joint Ventures As of June 30, 2021, the Company has determined it is not the primary beneficiary of two of its joint ventures. Due to its significant influence over the unconsolidated entities, the Company accounts for them 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. As of December 24, 2020, the Company owns 50% of the ownership interest in the joint venture which owns the Sunset Glenoaks Studios development. The Company serves as the operating member. On June 5, 2019, the Company purchased, pursuant to a co-ownership agreement with Blackstone 1 LP, an affiliate of Blackstone, 20% of the ownership interest in the Bentall Centre property. The joint venture property-owning entity is structured as a tenancy in common under applicable tax laws. The Company owns 20% of this joint venture and serves as the operating partner. The Company’s net equity investment in its unconsolidated joint ventures is reflected within investment in unconsolidated real estate entities on the Consolidated Balance Sheets. The Company’s share of net income or loss from the joint ventures is included within income from unconsolidated real estate entities on the Consolidated Statements of Operations. The Company uses the cumulative earnings approach for determining cash flow presentation of distributions from unconsolidated joint ventures. Under this approach, distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and those in excess of that amount are classified as cash inflows from investing activities. Refer to Note 4 for further details regarding our investments in unconsolidated joint ventures. 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, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, 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. Lease Accounting The Company accounts for its leases under ASC 842, Leases (“ASC 842”), which 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. Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases and facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company made an accounting policy election, by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and liabilities was 5.6%. ROU assets also include any lease payments made and exclude lease incentives. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 30 years as of June 30, 2021. Lessor Accounting The presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. 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 is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). 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) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income. 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: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Management fee income Income derived from management services provided to unconsolidated joint venture entities Fee income Management services reimbursement income Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities Management services reimbursement income—unconsolidated real estate entities The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company does not account for lease concessions related to the effects of the COVID-19 pandemic as lease modifications to the extent that the concessions are granted as payment deferrals and total payments remain substantially the same during the lease term. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses 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. Other tenant-related revenues include parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues, other revenues, management fee income and management services reimbursement income are accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606 for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Ancillary revenues $ 7,093 $ 1,613 $ 14,633 $ 7,412 Other revenues $ 3,923 $ 3,837 $ 6,965 $ 9,792 Studio-related tenant recoveries $ 483 $ 378 $ 1,006 $ 823 Management fee income $ 797 $ 556 $ 1,645 $ 1,166 Management services reimbursement income $ 626 $ — $ 626 $ — The following table summarizes the Company’s receivables that are accounted for under ASC 606 as of: June 30, 2021 December 31, 2020 Ancillary revenues $ 1,465 $ 1,700 Other revenues $ 1,215 $ 1,058 In regards to sales of real estate, the Company applies certain recognition and measurement principles in accordance with ASC 606. The Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract |
Investment in Real Estate
Investment in Real Estate | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of: June 30, 2021 December 31, 2020 Land $ 1,351,888 $ 1,351,888 Building and improvements 5,948,317 5,840,819 Tenant improvements 742,968 728,111 Furniture and fixtures 12,881 12,250 Property under development 325,017 281,949 INVESTMENT IN REAL ESTATE, AT COST $ 8,381,071 $ 8,215,017 Acquisitions The Company had no acquisitions during the six months ended June 30, 2021. Dispositions The Company had no dispositions during the six months ended June 30, 2021. Held for Sale As of June 30, 2021, the Company had no properties that met the criteria to be classified as held for sale. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles 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, based on Level 1 or Level 2 inputs, less estimated costs to sell. The Company did not recognize impairment charges during the six months ended June 30, 2021 and 2020. |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Entity | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Real Estate Entity | Investment in Unconsolidated Real Estate Entities As of December 24, 2020, the Company owns 50% of the ownership interest in the joint venture which owns the Sunset Glenoaks Studios development in Los Angeles, California. The Company serves as the operating member. The Company owns 20% of the ownership interest in the joint venture that owns Bentall Centre office property and retail complex in Vancouver, Canada (“Bentall Centre”). The Company serves as the operating partner. Bentall Centre’s functional currency is the local currency, or Canadian dollars. The Company has exposure to risks related to foreign currency fluctuations. The assets and liabilities are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. Income statement accounts of our foreign subsidiaries are translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive loss as a separate component of total equity and are excluded from net income. The maximum exposure related to this unconsolidated joint venture is limited to the Company’s investment and $104.2 million of debt which the Company has guaranteed. The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures as of: June 30, 2021 December 31, 2020 ASSETS Investment in real estate, net $ 880,266 $ 855,639 Other assets 42,943 51,118 TOTAL ASSETS $ 923,209 $ 906,757 LIABILITIES Secured debt, net $ 517,377 $ 495,771 Other liabilities 39,060 52,828 TOTAL LIABILITIES 556,437 548,599 Company’s capital (1) 83,460 80,778 Partners’ capital 283,312 277,380 TOTAL CAPITAL 366,772 358,158 TOTAL LIABILITIES AND CAPITAL $ 923,209 $ 906,757 __________________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in income from unconsolidated real estate entities on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 TOTAL REVENUES $ 20,041 $ 25,943 $ 39,427 $ 51,738 TOTAL EXPENSES 17,728 23,922 33,972 50,871 NET INCOME $ 2,313 $ 2,021 $ 5,455 $ 867 |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 6 Months Ended |
Jun. 30, 2021 | |
Leases [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: June 30, 2021 December 31, 2020 Deferred leasing costs and in-place lease intangibles $ 351,637 $ 352,903 Accumulated amortization (138,852) (127,180) Deferred leasing costs and in-place lease intangibles, net 212,785 225,723 Below-market ground leases 72,916 72,916 Accumulated amortization (15,028) (13,831) Below-market ground leases, net 57,888 59,085 Above-market leases 1,984 2,802 Accumulated amortization (1,456) (1,774) Above-market leases, net 528 1,028 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 271,201 $ 285,836 Below-market leases $ 92,181 $ 98,365 Accumulated amortization (49,628) (50,054) Below-market leases, net 42,553 48,311 Above-market ground leases 1,095 1,095 Accumulated amortization (284) (262) Above-market ground leases, net 811 833 LEASE INTANGIBLE LIABILITIES, NET $ 43,364 $ 49,144 The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Deferred leasing costs and in-place lease intangibles (1) $ (11,654) $ (10,129) $ (23,221) $ (20,864) Below-market ground leases (2) $ (598) $ (599) $ (1,197) $ (1,198) Above-market leases (3) $ (76) $ (159) $ (500) $ (353) Below-market leases (3) $ 2,815 $ 2,622 $ 5,758 $ 5,360 Above-market ground leases (2) $ 11 $ 11 $ 22 $ 22 __________________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues on the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3. Amortization is recorded in office rental revenues on the Consolidated Statements of Operations. |
Receivables
Receivables | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Receivables | Receivables The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts related to service revenues are discussed in the Company’s 2020 Annual Report on Form 10-K. Accounts Receivable As of June 30, 2021, accounts receivable was $16.4 million and there was no allowance for doubtful accounts. As of December 31, 2020, accounts receivable was $22.1 million and there was no allowance for doubtful accounts. Straight-Line Rent Receivables As of June 30, 2021, straight-line rent receivables was $238.8 million and there was a $19.0 thousand allowance for doubtful accounts. As of December 31, 2020, straight-line rent receivables was $226.0 million and there was a $0.3 million allowance for doubtful accounts. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets, net | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net The following table summarizes the Company’s prepaid expenses and other assets, net as of: June 30, 2021 December 31, 2020 Deposits and pre-development costs for future acquisitions $ 40,470 $ 28,488 Prepaid insurance 12,550 5,100 Goodwill 8,754 8,754 Non-real estate investments 21,646 4,088 Stock purchase warrant 1,839 — Deferred financing costs 695 1,216 Prepaid property tax — 2,138 Interest rate cap derivative asset 5 5 Other 25,128 22,878 PREPAID EXPENSES AND OTHER ASSETS, NET $ 111,087 $ 72,667 Goodwill No goodwill impairment indicators have been identified during the three and six months ended June 30, 2021. Non-Real Estate Investments The Company measures its investments in common stock and convertible preferred stock at fair value based on Level 1 and Level 2 inputs, respectively. The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value (“NAV”) practical expedient and uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value of the investment. Changes in the fair value of these non-real estate investments are included in unrealized gain (loss) on non-real estate investments on the Consolidated Statements of Operations. The Company recognized an unrealized gain of $5.1 million and $9.0 million on its non-real estate investments during the three and six months ended June 30, 2021, respectively, due to the observable changes in fair value. The Company recognized an unrealized loss of $0.7 million and $1.2 million on its non-real estate investments during the three and six months ended June 30, 2020, respectively, due to the observable changes in fair value. Stock Purchase Warrant The Company holds an investment in a stock purchase warrant that gives the Company the right to purchase a fixed number of shares of common stock of a non-real estate investee. The warrant meets the definition of a derivative and is measured at fair value based on Level 2 inputs. Changes in the fair value of the derivative asset are included in unrealized gain (loss) on non-real estate investments on the Consolidated Statements of Operations. The Company recognized an unrealized loss of $0.1 million and an unrealized gain of $1.8 million related to the change in the fair value of the stock purchase warrant during the three and six months ended June 30, 2021, respectively. No gain or loss was recognized related to the change in the fair value of the stock purchase warrant during the three and six months ended June 30, 2020. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information with respect to the Company’s outstanding indebtedness: June 30, 2021 December 31, 2020 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ — $ — LIBOR + 1.05% to 1.50% 3/13/2022 (4) Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes 500,000 500,000 4.65% 4/1/2029 3.25% Registered senior notes 400,000 400,000 3.25% 1/15/2030 Total unsecured debt 1,925,000 1,925,000 Secured debt Hollywood Media Portfolio, net (5)(6) 792,186 792,186 LIBOR + 2.15% 8/9/2022 10950 Washington (7) 25,404 25,717 5.32% 3/11/2022 One Westside and 10850 Pico (8) 192,923 106,073 LIBOR + 1.70% 12/18/2023 (4) Element LA 168,000 168,000 4.59% 11/6/2025 1918 Eighth (9) 314,300 314,300 LIBOR + 1.70% 12/18/2025 Hill7 (10) 101,000 101,000 3.38% 11/6/2028 Total secured debt 1,593,813 1,507,276 Total unsecured and secured debt 3,518,813 3,432,276 Unamortized deferred financing costs and loan discounts/premiums (11) (27,770) (32,784) TOTAL UNSECURED AND SECURED DEBT, NET $ 3,491,043 $ 3,399,492 IN-SUBSTANCE DEFEASED DEBT (12) $ 129,971 $ 131,707 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (13) $ 66,136 $ 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 June 30, 2021, which may be different than the interest rates as of December 31, 2020 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an 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 June 30, 2021, no such election had been made. 3. The Company has a total capacity of $600.0 million available under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one-year term. 5. The Company owns 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. The joint venture holds a $900.0 million mortgage loan secured by the Hollywood Media Portfolio. This loan has an initial term of two years from the first payment date, with three one-year extension options, subject to certain requirements. The Company and Blackstone each purchased bonds comprising the loan in the amounts of $107.8 million and $12.5 million, respectively. 6. The interest rate on a portion of the outstanding loan balance has been effectively fixed through the use of interest rate swaps under the first payments approach. As of June 30, 2021, the LIBOR component of the interest rate was fixed at 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the loan secured by the Hollywood Media Portfolio, respectively. 7. Monthly debt service includes debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 8. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 9. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan has an initial interest rate of LIBOR plus 1.70% per annum and is interest-only through the five-year term. 10. 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. 11. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See Note 7 for details. 12. The 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 debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 13. This amount relates to debt attributable to Allianz U.S. Private REIT LP (“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 During the six months ended June 30, 2021, there were no borrowings on the unsecured revolving credit facility. The Company generally uses the unsecured revolving credit facility to finance the acquisition of properties, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes. Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, 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 loans 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 June 30, 2021: Year Unsecured and Secured Debt In-substance Defeased Debt Joint Venture Partner Debt Remaining 2021 $ 319 $ 1,758 $ — 2022 817,271 128,213 — 2023 352,923 — — 2024 — — — 2025 741,300 — — Thereafter 1,607,000 — 66,136 TOTAL $ 3,518,813 $ 129,971 $ 66,136 Unsecured Revolving Credit Facility The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: June 30, 2021 December 31, 2020 Outstanding borrowings $ — $ — Remaining borrowing capacity 600,000 600,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 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 June 30, 2021, no such election had been made. 2. The maturity date may be extended once for an additional one-year term. 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 the 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 as of June 30, 2021 related to the unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 39.4% Unsecured indebtedness to unencumbered asset value ≤ 60% 37.7% Adjusted EBITDA to fixed charges ≥ 1.5x 3.6x Secured indebtedness to total asset value ≤ 45% 18.7% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.4x The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of June 30, 2021: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 41.0% Total unencumbered assets to unsecured debt ≥ 150% 291.7% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x Secured debt to total assets ≤ 45% 19.2% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes and 4.65% Senior Notes. The operating partnership was in compliance with its financial covenants as of June 30, 2021. Repayment Guarantees 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. The Company guarantees the operating partnership’s unsecured debt. Interest Expense The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Gross interest expense (1) $ 33,889 $ 31,165 $ 67,429 $ 61,451 Capitalized interest (5,618) (4,479) (11,289) (9,593) Amortization of deferred financing costs and loan discounts/premiums 2,418 1,244 4,835 2,489 INTEREST EXPENSE $ 30,689 $ 27,930 $ 60,975 $ 54,347 _________________ 1. Includes interest on the Company’s debt and hedging activities and term loans. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. The Company had three interest rate swaps with aggregate notional amounts of $475.0 million as of June 30, 2021 and December 31, 2020. These derivatives were designated as effective cash flow hedges for accounting purposes. The Company had one interest rate cap contract with an aggregate notional amount of $900.0 million as of June 30, 2021 and December 31, 2020. The interest rate cap is not designated under hedge accounting and is accounted for under mark-to-market accounting. 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 June 30, 2021 and December 31, 2020: Interest Rate Range (1) Fair Value (Liabilities) Assets Underlying Debt Instrument Number of Derivatives Notional Amount Effective Date Maturity Date Low High June 30, 2021 December 31, 2020 Interest rate swaps Hollywood Media Portfolio (2) 2 $ 350,000 April 2015 April 2022 2.96% 3.46% (4,341) (7,112) Hollywood Media Portfolio (2) 1 125,000 June 2016 November 2022 2.63% 3.13% (2,191) (2,994) Interest rate cap Strike rate Hollywood Media Portfolio 1 $ 900,000 July 2020 August 2022 3.50% $ 5 $ 5 TOTAL $ (6,527) $ (10,101) _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio. 2. The swaps were designated under the first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of June 30, 2021, the Company expects $6.0 million of unrealized loss included in accumulated other comprehensive loss will be reclassified as an increase to interest expense in the next 12 months. |
U.S. Government Securities
U.S. Government Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
U.S. Government Securities | U.S. Government Securities The Company had U.S. Government securities of $132.2 million and $135.1 million as of June 30, 2021 and December 31, 2020, respectively. The acquisition of the One Westside and 10850 Pico properties in 2018 included the assumption of debt that was, in substance, defeased through the purchase of U.S. Government-backed securities. The securities are investments held to maturity and are carried at amortized cost on the Consolidated Balance Sheets. The Company has both the intent and ability to hold to maturity. As of June 30, 2021, the Company has incurred $4.2 million of gross unrealized gains and no gross unrealized losses related to the U.S. Government securities. The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date as of June 30, 2021: Carrying Value Fair Value Due in 1 year $ 132,222 $ 136,436 TOTAL $ 132,222 $ 136,436 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Hudson Pacific Properties, Inc. 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. Provided it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate-level income tax on the earnings distributed currently to its stockholders. The Company has elected, together with certain of its subsidiaries, to treat each such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. In general, 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, Ferry Building and 1918 Eighth properties, REITs) for federal income tax purposes. In the case of the Bentall Centre property, the Company owns its interest in the property through non-U.S entities treated as TRSs 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 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 June 30, 2021, the Company has not established a liability for uncertain tax positions. The Company and certain of its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRSs are no longer subject to tax examinations by tax authorities for years prior to 2016. The Company has assessed its tax positions for all open years, which as of June 30, 2021 included 2017 to 2019 for Federal purposes and 2016 to 2019 for state purposes, and concluded that there are no material uncertainties to be recognized. |
Future Minimum Rents and Lease
Future Minimum Rents and Lease Payments | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Future Minimum Rents and Lease Payments (Lessor) | Future Minimum Rents and Lease Payments 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 June 30, 2021: Year Ended Non-cancellable Subject to Early Termination Options Total (1) Remaining 2021 $ 311,520 $ 3,714 $ 315,234 2022 594,199 16,171 610,370 2023 548,483 23,475 571,958 2024 486,552 18,290 504,842 2025 347,429 54,345 401,774 Thereafter 1,514,190 206,961 1,721,151 TOTAL $ 3,802,373 $ 322,956 $ 4,125,329 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of thirteen ground leases, one office lease and one fitness facility lease as of June 30, 2021. The Company’s operating lease obligations have expiration dates ranging from 2023 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of June 30, 2021, the present value of the remaining contractual payments of $605.9 million under the Company’s operating lease agreements was $274.4 million. The corresponding operating lease right-of-use assets amounted to $268.5 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of June 30, 2021: Year Lease Payments 1 Remaining 2021 $ 9,666 2022 19,341 2023 19,129 2024 19,096 2025 19,109 Thereafter 519,518 Total operating lease payments 605,859 Less: interest portion (331,451) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 274,408 _____________ 1. Future minimum lease payments for operating leases denominated in Canadian dollars are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Variable rental expense $ 2,494 $ 2,100 $ 5,108 $ 4,256 Minimum rental expense $ 5,551 $ 4,991 $ 10,542 $ 9,982 |
Future Minimum Rents and Lease Payments (Lessee) | Future Minimum Rents and Lease Payments 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 June 30, 2021: Year Ended Non-cancellable Subject to Early Termination Options Total (1) Remaining 2021 $ 311,520 $ 3,714 $ 315,234 2022 594,199 16,171 610,370 2023 548,483 23,475 571,958 2024 486,552 18,290 504,842 2025 347,429 54,345 401,774 Thereafter 1,514,190 206,961 1,721,151 TOTAL $ 3,802,373 $ 322,956 $ 4,125,329 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Operating Lease Agreements The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of thirteen ground leases, one office lease and one fitness facility lease as of June 30, 2021. The Company’s operating lease obligations have expiration dates ranging from 2023 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value. As of June 30, 2021, the present value of the remaining contractual payments of $605.9 million under the Company’s operating lease agreements was $274.4 million. The corresponding operating lease right-of-use assets amounted to $268.5 million. The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of June 30, 2021: Year Lease Payments 1 Remaining 2021 $ 9,666 2022 19,341 2023 19,129 2024 19,096 2025 19,109 Thereafter 519,518 Total operating lease payments 605,859 Less: interest portion (331,451) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 274,408 _____________ 1. Future minimum lease payments for operating leases denominated in Canadian dollars are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. The following table summarizes rental expense for operating leases: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Variable rental expense $ 2,494 $ 2,100 $ 5,108 $ 4,256 Minimum rental expense $ 5,551 $ 4,991 $ 10,542 $ 9,982 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments 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 require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate cap derivative asset (1) $ — $ 5 $ — $ 5 $ — $ 5 $ — $ 5 Interest rate swap derivative liabilities (2) $ — $ (6,532) $ — $ (6,532) $ — $ (10,106) $ — $ (10,106) Non-real estate investments measured at fair value (1) $ 2,030 $ 1,672 $ — $ 3,702 $ — $ 750 $ — $ 750 Stock purchase warrant (1) $ — $ 1,839 $ — $ 1,839 $ — $ — $ — $ — Non-real estate investments measured at NAV (1)(3) $ — $ — $ — $ 17,944 $ — $ — $ — $ 3,338 ___________ 1. Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2. Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3. According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. The fair value of the investment in U.S. Government securities is an estimate based on Level 1 inputs. The fair values of 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: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value ASSETS U.S. Government securities $ 132,222 $ 136,436 $ 135,115 $ 140,270 LIABILITIES Unsecured debt (1) $ 1,925,000 $ 2,058,872 $ 1,925,000 $ 2,072,833 Secured debt (1) $ 1,593,813 $ 1,592,751 $ 1,507,276 $ 1,503,960 In-substance defeased debt $ 129,971 $ 130,267 $ 131,707 $ 131,633 Joint venture partner debt $ 66,136 $ 69,288 $ 66,136 $ 68,346 _________________ |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | Stock-based Compensation The Company has various stock compensation arrangements, which are more fully described in the 2020 Annual Report on Form 10-K. Under the 2010 Incentive Plan, as amended (“2010 Plan”), the Company’s board of directors (“Board”) has the ability to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. 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. Additionally, certain non-employee Board members elect to receive operating partnership performance units in lieu of their annual cash retainer fees. These awards are generally issued in the fourth quarter and are fully-vested upon their issuance. 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. Additionally, certain employees elect to receive operating partnership performance units in lieu of their annual cash bonus. These awards are generally issued in the fourth quarter and are fully-vested upon their issuance. The Compensation Committee of the Board (“Compensation Committee”) adopted a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under the 2010 Plan through 2019. Commencing with the 2017 OPP Plan, 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 be subject to a mandatory two-year holding period upon vesting. OPP Plan awards are settled in common stock and, in the case of certain executives, in operating partnership performance units. Beginning in 2020, the Compensation Committee adopted an annual Hudson Pacific Properties, Inc. Performance Stock Unit Plan (“PSU Plan”). Under the PSU Plan, the Compensation Committee awards restricted stock units or performance units in the operating partnership to certain employees. PSU Plan grants consist of two portions. A portion of each award, the Relative Total Shareholder Return (“TSR”) Performance Unit, is eligible to vest based on the achievement of the Company’s TSR compared to the TSR of the SNL U.S. REIT Office Index over a three-year performance period, with the vesting percentage subject to certain percentage targets. The remaining portion of each award, the Operational Performance Unit, becomes eligible to vest based on the achievement of operational performance metrics over a one-year performance period and vests over three years. The number of Operational Performance Units that becomes eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of absolute TSR goals over a three-year performance period by applying the applicable vesting percentages. Certain of the awards granted under the PSU Plan are subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred. The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expensed stock compensation (1) $ 6,340 $ 4,723 $ 9,878 $ 9,618 Capitalized stock compensation (2) 1,009 581 1,888 1,566 TOTAL STOCK COMPENSATION (3) $ 7,349 $ 5,304 $ 11,766 $ 11,184 _________________ 1. Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2. Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three and six months ended months ended June 30, 2021 and 2020, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount. 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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Basic net income available to common stockholders $ 2,315 $ 3,691 $ 7,297 $ 14,468 Effect of dilutive instruments 18 39 — 146 Diluted net income available to common stockholders $ 2,333 $ 3,730 $ 7,297 $ 14,614 Denominator: Basic weighted average common shares outstanding 151,169,612 153,306,976 150,997,564 153,869,789 Effect of dilutive instruments (1) 1,513,851 2,314,537 305,281 2,645,537 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 152,683,463 155,621,513 151,302,845 156,515,326 Basic earnings per common share $ 0.02 $ 0.02 $ 0.05 $ 0.09 Diluted earnings per common share $ 0.02 $ 0.02 $ 0.05 $ 0.09 ________________ 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 or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The operating partnership calculates basic earnings per unit using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three and six months ended June 30, 2021 and 2020, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower earnings per unit amount. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income available to common unitholders: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Basic and diluted net income available to common unitholders $ 2,334 $ 3,713 $ 7,366 $ 14,553 Denominator: Basic weighted average common units outstanding 152,551,236 154,218,834 152,369,823 154,781,647 Effect of dilutive instruments (1) 132,227 794,000 305,281 1,125,000 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 152,683,463 155,012,834 152,675,104 155,906,647 Basic earnings per common unit $ 0.02 $ 0.02 $ 0.05 $ 0.09 Diluted earnings per common unit $ 0.02 $ 0.02 $ 0.05 $ 0.09 ________________ |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 6 Months Ended |
Jun. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-controlling Interest Redeemable Preferred Units of the Operating Partnership As of June 30, 2021 and December 31, 2020, there were 392,598 series A preferred units of partnership interest in the operating partnership (“series A preferred units”) which are not owned by the Company. These series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit. The units are 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. Redeemable Non-controlling Interest in Consolidated Real Estate Entities On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC. On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC WSP, LLC. 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, after a specified time, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable. On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building property. 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. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable. The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Series A Redeemable Preferred Units Consolidated Real Estate Entities Series A Redeemable Preferred Units Consolidated Entities BEGINNING OF PERIOD $ 9,815 $ 128,661 $ 9,815 $ 127,874 Contributions — 74 — 1,543 Distributions — (8) — (8) Declared dividend (153) — (306) — Net income (loss) 153 (1,282) 306 (1,964) END OF PERIOD $ 9,815 $ 127,445 $ 9,815 $ 127,445 |
Equity
Equity | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Equity | Equity The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive loss (“OCI”): Derivative Instruments Currency Translation Adjustments Total Accumulated Other Comprehensive Loss BALANCE AT DECEMBER 31, 2020 $ (11,378) $ 3,245 $ (8,133) Unrealized (losses) gains recognized in OCI (134) 1,897 1,763 Reclassification adjustment for realized gains (1) 3,634 — 3,634 Net change in OCI 3,500 1,897 5,397 BALANCE AT JUNE 30, 2021 $ (7,878) $ 5,142 $ (2,736) _____________ 1. The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. The table below presents the activity related to Hudson Pacific Properties, L.P.’s OCI: Derivative Instruments Currency Translation Adjustments Total Accumulated Other Comprehensive Loss BALANCE AT DECEMBER 31, 2020 $ (11,485) $ 3,239 $ (8,246) Unrealized (losses) gains recognized in OCI (136) 1,923 1,787 Reclassification adjustment for realized gains (1) 3,683 — 3,683 Net change in OCI 3,547 1,923 5,470 BALANCE AT JUNE 30, 2021 $ (7,938) $ 5,162 $ (2,776) _____________ 1. The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. 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 at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such common units on a one-for-one basis. Performance Units in the Operating Partnership 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. Current Year Activity The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of: June 30, 2021 December 31, 2020 Company-owned common units in the operating partnership 152,319,084 151,401,365 Company’s ownership interest percentage 99.1 % 99.1 % Non-controlling units in the operating partnership (1) 1,381,624 1,321,083 Non-controlling ownership interest percentage 0.9 % 0.9 % _________________ 1. Represents common units held by certain of the Company’s executive officers, directors and outside investors. As of June 30, 2021, this amount represents both common units and performance units in the amount of 550,969 and 830,655, respectively. As of December 31, 2020, this amount represents both common units and performance units in the amount of 550,969 and 770,114, respectively. Common Stock Activity The Company has not completed any common stock offerings during the six months ended June 30, 2021. The Company’s at-the-market (“ATM”) program permits sales of up to $125.0 million of common stock. The Company utilized the ATM program during the six months ended June 30, 2021 and sold 1,526,163 shares of common stock at sale prices ranging from $29.53 to $30.17 per share for total proceeds of $45.7 million, before transaction costs. A cumulative total of $65.8 million has been sold as of June 30, 2021. Share Repurchase Program The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million under its share repurchase program. During the six months ended June 30, 2021, the Company repurchased $14.7 million of its common stock, before transaction costs. Since commencement of the program, a cumulative total of $144.9 million has been repurchased. Share repurchases are accounted for on the trade date. 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 declares dividends on a quarterly basis and the Company pays the dividends during the quarters in which the dividends are declared. The following table summarizes dividends declared and paid for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Common stock $ 0.25 $ 0.25 $ 0.50 $ 0.50 Common units $ 0.25 $ 0.25 $ 0.50 $ 0.50 Series A preferred units $ 0.3906 $ 0.3906 $ 0.7812 $ 0.7812 Performance units $ 0.25 $ 0.25 $ 0.50 $ 0.50 Payment date June 28, 2021 June 29, 2020 N/A N/A Record date June 18, 2021 June 19, 2020 N/A N/A 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. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties and (ii) 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 the Company’s 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 the Company’s reportable segments: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Office segment Office revenues $ 195,703 $ 184,308 $ 387,846 $ 370,735 Office expenses (69,111) (64,611) (135,673) (128,471) Office segment profit 126,592 119,697 252,173 242,264 Studio segment Studio revenues 19,899 14,302 40,875 34,102 Studio expenses (12,466) (7,951) (23,919) (18,601) Studio segment profit 7,433 6,351 16,956 15,501 TOTAL SEGMENT PROFIT $ 134,025 $ 126,048 $ 269,129 $ 257,765 Segment revenues $ 215,602 $ 198,610 $ 428,721 $ 404,837 Segment expenses (81,577) (72,562) (159,592) (147,072) TOTAL SEGMENT PROFIT $ 134,025 $ 126,048 $ 269,129 $ 257,765 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 NET INCOME $ 7,030 $ 7,011 $ 18,441 $ 20,960 General and administrative 17,109 17,897 35,558 36,515 Depreciation and amortization 84,178 73,516 166,939 147,279 Income from unconsolidated real estate entities (470) (410) (1,105) (174) Fee income (797) (556) (1,645) (1,166) Interest expense 30,689 27,930 60,975 54,347 Interest income (937) (1,048) (1,934) (2,073) Management services reimbursement income—unconsolidated real estate entities (626) — (626) — Management services expense—unconsolidated real estate entities 626 — 626 — Transaction-related expenses 1,064 157 1,064 259 Unrealized (gain) loss on non-real estate investments (5,018) 2,267 (10,793) 2,848 Other expense (income) 1,177 (716) 1,629 (1,030) TOTAL PROFIT FROM ALL SEGMENTS $ 134,025 $ 126,048 $ 269,129 $ 257,765 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020, that provide for various severance and change in control benefits and other terms and conditions of employment. Related Party Leases The Company’s wholly-owned subsidiary is party to long-term operating lease agreements with an unconsolidated joint venture for office space and a fitness facility. As of June 30, 2021, the Company’s right-of-use assets and lease liabilities related to these lease obligations were $6.0 million and $6.1 million, respectively. During the six months ended June 30, 2021, the Company recognized $0.6 million of related rental expense in management services expense—unconsolidated joint ventures on the Consolidated Statement of Operations related to these leases. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-Real Estate Investments The Company invests in several non-real estate funds with an aggregate commitment to contribute up to $28.0 million. As of June 30, 2021, the Company has contributed $12.6 million to these funds, net of distributions, with $15.4 million remaining to be contributed. 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 June 30, 2021, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Letters of Credit As of June 30, 2021, the Company had outstanding letters of credit totaling approximately $2.8 million under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements. Contractual Obligations The Company has entered into a number of construction agreements related to its development activities at various properties. As of June 30, 2021, the Company had $163.2 million in outstanding obligations under the agreements. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Six Months Ended June 30, 2021 2020 Cash paid for interest, net of capitalized interest $ 56,034 $ 48,794 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ 134,516 $ 162,454 Lease liabilities recorded in connection with right-of-use assets $ 6,688 $ — Nonrefundable deposit for sale of non-controlling interest $ — $ 50,000 Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Six Months Ended June 30, 2021 2020 Cash paid for interest, net of capitalized interest $ 56,034 $ 48,794 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ 134,516 $ 162,454 Lease liabilities recorded in connection with right-of-use assets $ 6,688 $ — Nonrefundable deposit for sale of non-controlling interest $ — $ 50,000 Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent EventsOn July 29, 2021, the Company purchased, through a joint venture with an affiliate of Blackstone, a 91-acre site located north of central London, England for future studio development for a total purchase price of $167.5 million, before certain credits, prorations and closing costs. The Company owns 35% of this joint venture. In anticipation of this transaction, on July 22, 2021 the Company borrowed $50.0 million under its unsecured revolving credit facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. |
Principles of consolidation | Principles of Consolidation The unaudited interim 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, the Company continually evaluates 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 June 30, 2021, the Company has determined that its operating partnership and 14 joint ventures met the definition of a VIE. 12 of these joint ventures are consolidated and two are unconsolidated. |
Use of estimates | 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, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, 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. |
Lessee accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases and facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company made an accounting policy election, by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. |
Lessor accounting | Lessor Accounting The presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. 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 is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers |
Revenue recognition | 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) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income. 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: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Management fee income Income derived from management services provided to unconsolidated joint venture entities Fee income Management services reimbursement income Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities Management services reimbursement income—unconsolidated real estate entities The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company does not account for lease concessions related to the effects of the COVID-19 pandemic as lease modifications to the extent that the concessions are granted as payment deferrals and total payments remain substantially the same during the lease term. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses 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. Other tenant-related revenues include parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues, |
Organization (Tables)
Organization (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Portfolio of properties | The following table summarizes the Company’s portfolio as of June 30, 2021: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 52 14,092,789 Studios 3 1,224,403 Land 6 2,504,406 Total consolidated portfolio 61 17,821,598 Unconsolidated portfolio (1) Office 1 1,491,858 Land 2 691,000 Total unconsolidated portfolio 3 2,182,858 TOTAL (2) 64 20,004,456 _________________ 1. Pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone 1 LP”), the Company owns 20% of the unconsolidated joint venture which owns the Bentall Centre property located in Vancouver, Canada. The Company also owns 50% of the unconsolidated joint venture entity which owns the Sunset Glenoaks Studios development. The square footage shown above represents 100% of the properties. See Note 4 for details. 2. Includes repositioning, redevelopment and development properties. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of consolidated entities | As of June 30, 2021, the operating partnership has determined that 12 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 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % Sunset Bronson Entertainment Properties, LLC Sunset Bronson Studios, ICON, CUE 51.0 % Sunset Gower Entertainment Properties, LLC Sunset Gower Studios 51.0 % Sunset Las Palmas Entertainment Properties, LLC Sunset Las Palmas Studios, Harlow 51.0 % Sunset Services Holdings, LLC None (1) 51.0 % Sunset Studios Holdings, LLC EPIC 51.0 % Hudson Media and Entertainment Management, LLC None (2) 51.0 % Hudson 6040 Sunset, LLC 6040 Sunset 51.0 % Hudson 1918 Eighth, L.P. 1918 Eighth 55.0 % __________________ 1. Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to the respective entertainment properties above. 2. Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”). |
Schedule of sources of revenues | 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) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income. 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: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate Management fee income Income derived from management services provided to unconsolidated joint venture entities Fee income Management services reimbursement income Reimbursement of costs incurred by the Company in the management of unconsolidated joint venture entities Management services reimbursement income—unconsolidated real estate entities |
Schedule of receivables subject to new accounting standards | The following table summarizes the Company’s revenue streams that are accounted for under ASC 606 for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Ancillary revenues $ 7,093 $ 1,613 $ 14,633 $ 7,412 Other revenues $ 3,923 $ 3,837 $ 6,965 $ 9,792 Studio-related tenant recoveries $ 483 $ 378 $ 1,006 $ 823 Management fee income $ 797 $ 556 $ 1,645 $ 1,166 Management services reimbursement income $ 626 $ — $ 626 $ — The following table summarizes the Company’s receivables that are accounted for under ASC 606 as of: June 30, 2021 December 31, 2020 Ancillary revenues $ 1,465 $ 1,700 Other revenues $ 1,215 $ 1,058 |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
Summary of investment in real estate | The following table summarizes the Company’s investment in real estate, at cost as of: June 30, 2021 December 31, 2020 Land $ 1,351,888 $ 1,351,888 Building and improvements 5,948,317 5,840,819 Tenant improvements 742,968 728,111 Furniture and fixtures 12,881 12,250 Property under development 325,017 281,949 INVESTMENT IN REAL ESTATE, AT COST $ 8,381,071 $ 8,215,017 |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Entity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures as of: June 30, 2021 December 31, 2020 ASSETS Investment in real estate, net $ 880,266 $ 855,639 Other assets 42,943 51,118 TOTAL ASSETS $ 923,209 $ 906,757 LIABILITIES Secured debt, net $ 517,377 $ 495,771 Other liabilities 39,060 52,828 TOTAL LIABILITIES 556,437 548,599 Company’s capital (1) 83,460 80,778 Partners’ capital 283,312 277,380 TOTAL CAPITAL 366,772 358,158 TOTAL LIABILITIES AND CAPITAL $ 923,209 $ 906,757 __________________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in income from unconsolidated real estate entities on the Consolidated Statements of Operations. The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 TOTAL REVENUES $ 20,041 $ 25,943 $ 39,427 $ 51,738 TOTAL EXPENSES 17,728 23,922 33,972 50,871 NET INCOME $ 2,313 $ 2,021 $ 5,455 $ 867 |
Deferred Leasing Costs and Le_2
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of deferred leasing cost and lease intangibles | The following summarizes the Company’s deferred leasing costs and lease intangibles as of: June 30, 2021 December 31, 2020 Deferred leasing costs and in-place lease intangibles $ 351,637 $ 352,903 Accumulated amortization (138,852) (127,180) Deferred leasing costs and in-place lease intangibles, net 212,785 225,723 Below-market ground leases 72,916 72,916 Accumulated amortization (15,028) (13,831) Below-market ground leases, net 57,888 59,085 Above-market leases 1,984 2,802 Accumulated amortization (1,456) (1,774) Above-market leases, net 528 1,028 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 271,201 $ 285,836 Below-market leases $ 92,181 $ 98,365 Accumulated amortization (49,628) (50,054) Below-market leases, net 42,553 48,311 Above-market ground leases 1,095 1,095 Accumulated amortization (284) (262) Above-market ground leases, net 811 833 LEASE INTANGIBLE LIABILITIES, NET $ 43,364 $ 49,144 |
Schedule of amortization during period | The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Deferred leasing costs and in-place lease intangibles (1) $ (11,654) $ (10,129) $ (23,221) $ (20,864) Below-market ground leases (2) $ (598) $ (599) $ (1,197) $ (1,198) Above-market leases (3) $ (76) $ (159) $ (500) $ (353) Below-market leases (3) $ 2,815 $ 2,622 $ 5,758 $ 5,360 Above-market ground leases (2) $ 11 $ 11 $ 22 $ 22 __________________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues on the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses on the Consolidated Statements of Operations. 3. Amortization is recorded in office rental revenues on the Consolidated Statements of Operations. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other assets, net | The following table summarizes the Company’s prepaid expenses and other assets, net as of: June 30, 2021 December 31, 2020 Deposits and pre-development costs for future acquisitions $ 40,470 $ 28,488 Prepaid insurance 12,550 5,100 Goodwill 8,754 8,754 Non-real estate investments 21,646 4,088 Stock purchase warrant 1,839 — Deferred financing costs 695 1,216 Prepaid property tax — 2,138 Interest rate cap derivative asset 5 5 Other 25,128 22,878 PREPAID EXPENSES AND OTHER ASSETS, NET $ 111,087 $ 72,667 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness: June 30, 2021 December 31, 2020 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ — $ — LIBOR + 1.05% to 1.50% 3/13/2022 (4) Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes 500,000 500,000 4.65% 4/1/2029 3.25% Registered senior notes 400,000 400,000 3.25% 1/15/2030 Total unsecured debt 1,925,000 1,925,000 Secured debt Hollywood Media Portfolio, net (5)(6) 792,186 792,186 LIBOR + 2.15% 8/9/2022 10950 Washington (7) 25,404 25,717 5.32% 3/11/2022 One Westside and 10850 Pico (8) 192,923 106,073 LIBOR + 1.70% 12/18/2023 (4) Element LA 168,000 168,000 4.59% 11/6/2025 1918 Eighth (9) 314,300 314,300 LIBOR + 1.70% 12/18/2025 Hill7 (10) 101,000 101,000 3.38% 11/6/2028 Total secured debt 1,593,813 1,507,276 Total unsecured and secured debt 3,518,813 3,432,276 Unamortized deferred financing costs and loan discounts/premiums (11) (27,770) (32,784) TOTAL UNSECURED AND SECURED DEBT, NET $ 3,491,043 $ 3,399,492 IN-SUBSTANCE DEFEASED DEBT (12) $ 129,971 $ 131,707 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (13) $ 66,136 $ 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 June 30, 2021, which may be different than the interest rates as of December 31, 2020 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an 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 June 30, 2021, no such election had been made. 3. The Company has a total capacity of $600.0 million available under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one-year term. 5. The Company owns 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. The joint venture holds a $900.0 million mortgage loan secured by the Hollywood Media Portfolio. This loan has an initial term of two years from the first payment date, with three one-year extension options, subject to certain requirements. The Company and Blackstone each purchased bonds comprising the loan in the amounts of $107.8 million and $12.5 million, respectively. 6. The interest rate on a portion of the outstanding loan balance has been effectively fixed through the use of interest rate swaps under the first payments approach. As of June 30, 2021, the LIBOR component of the interest rate was fixed at 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the loan secured by the Hollywood Media Portfolio, respectively. 7. Monthly debt service includes debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 8. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 9. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan has an initial interest rate of LIBOR plus 1.70% per annum and is interest-only through the five-year term. 10. 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. 11. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. See Note 7 for details. 12. The 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 debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. |
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 June 30, 2021: Year Unsecured and Secured Debt In-substance Defeased Debt Joint Venture Partner Debt Remaining 2021 $ 319 $ 1,758 $ — 2022 817,271 128,213 — 2023 352,923 — — 2024 — — — 2025 741,300 — — Thereafter 1,607,000 — 66,136 TOTAL $ 3,518,813 $ 129,971 $ 66,136 |
Summary 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: June 30, 2021 December 31, 2020 Outstanding borrowings $ — $ — Remaining borrowing capacity 600,000 600,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 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 June 30, 2021, no such election had been made. 2. The maturity date may be extended once for an additional one-year term. |
Summary of existing covenants and their covenant levels | The following table summarizes existing covenants and their covenant levels as of June 30, 2021 related to the unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 39.4% Unsecured indebtedness to unencumbered asset value ≤ 60% 37.7% Adjusted EBITDA to fixed charges ≥ 1.5x 3.6x Secured indebtedness to total asset value ≤ 45% 18.7% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.4x The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of June 30, 2021: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 41.0% Total unencumbered assets to unsecured debt ≥ 150% 291.7% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x Secured debt to total assets ≤ 45% 19.2% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes and 4.65% Senior Notes. |
Schedule of interest expense | The following table represents a reconciliation from gross interest expense to the interest expense on the Consolidated Statements of Operations: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Gross interest expense (1) $ 33,889 $ 31,165 $ 67,429 $ 61,451 Capitalized interest (5,618) (4,479) (11,289) (9,593) Amortization of deferred financing costs and loan discounts/premiums 2,418 1,244 4,835 2,489 INTEREST EXPENSE $ 30,689 $ 27,930 $ 60,975 $ 54,347 _________________ 1. Includes interest on the Company’s debt and hedging activities and term loans. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the Company’s derivative instruments as of June 30, 2021 and December 31, 2020: Interest Rate Range (1) Fair Value (Liabilities) Assets Underlying Debt Instrument Number of Derivatives Notional Amount Effective Date Maturity Date Low High June 30, 2021 December 31, 2020 Interest rate swaps Hollywood Media Portfolio (2) 2 $ 350,000 April 2015 April 2022 2.96% 3.46% (4,341) (7,112) Hollywood Media Portfolio (2) 1 125,000 June 2016 November 2022 2.63% 3.13% (2,191) (2,994) Interest rate cap Strike rate Hollywood Media Portfolio 1 $ 900,000 July 2020 August 2022 3.50% $ 5 $ 5 TOTAL $ (6,527) $ (10,101) _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio. 2. The swaps were designated under the first payments approach within hedge accounting, where the Company elected to designate a cash flow (LIBOR-based interest payments) instead of a specific piece of debt. |
U.S. Government Securities (Tab
U.S. Government Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the carrying value and the fair value of securities | The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date as of June 30, 2021: Carrying Value Fair Value Due in 1 year $ 132,222 $ 136,436 TOTAL $ 132,222 $ 136,436 |
Future Minimum Rents and Leas_2
Future Minimum Rents and Lease Payments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of future minimum base rents | 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 June 30, 2021: Year Ended Non-cancellable Subject to Early Termination Options Total (1) Remaining 2021 $ 311,520 $ 3,714 $ 315,234 2022 594,199 16,171 610,370 2023 548,483 23,475 571,958 2024 486,552 18,290 504,842 2025 347,429 54,345 401,774 Thereafter 1,514,190 206,961 1,721,151 TOTAL $ 3,802,373 $ 322,956 $ 4,125,329 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. |
Schedule of future minimum lease payments for ground leases | The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of June 30, 2021: Year Lease Payments 1 Remaining 2021 $ 9,666 2022 19,341 2023 19,129 2024 19,096 2025 19,109 Thereafter 519,518 Total operating lease payments 605,859 Less: interest portion (331,451) PRESENT VALUE OF OPERATING LEASE LIABILITIES $ 274,408 _____________ 1. Future minimum lease payments for operating leases denominated in Canadian dollars are translated to U.S. dollars using the exchange rate in effect as of the financial statement date. |
Schedule of rental expense for ground leases | The following table summarizes rental expense for operating leases: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Variable rental expense $ 2,494 $ 2,100 $ 5,108 $ 4,256 Minimum rental expense $ 5,551 $ 4,991 $ 10,542 $ 9,982 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair value of derivatives measured by level of fair value hierarchy | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: June 30, 2021 December 31, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate cap derivative asset (1) $ — $ 5 $ — $ 5 $ — $ 5 $ — $ 5 Interest rate swap derivative liabilities (2) $ — $ (6,532) $ — $ (6,532) $ — $ (10,106) $ — $ (10,106) Non-real estate investments measured at fair value (1) $ 2,030 $ 1,672 $ — $ 3,702 $ — $ 750 $ — $ 750 Stock purchase warrant (1) $ — $ 1,839 $ — $ 1,839 $ — $ — $ — $ — Non-real estate investments measured at NAV (1)(3) $ — $ — $ — $ 17,944 $ — $ — $ — $ 3,338 ___________ 1. Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets. 2. Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. 3. According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets. |
Schedule of carrying value and fair value of notes payable | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value ASSETS U.S. Government securities $ 132,222 $ 136,436 $ 135,115 $ 140,270 LIABILITIES Unsecured debt (1) $ 1,925,000 $ 2,058,872 $ 1,925,000 $ 2,072,833 Secured debt (1) $ 1,593,813 $ 1,592,751 $ 1,507,276 $ 1,503,960 In-substance defeased debt $ 129,971 $ 130,267 $ 131,707 $ 131,633 Joint venture partner debt $ 66,136 $ 69,288 $ 66,136 $ 68,346 _________________ |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of classification and amount recognized for stock-based compensation | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Expensed stock compensation (1) $ 6,340 $ 4,723 $ 9,878 $ 9,618 Capitalized stock compensation (2) 1,009 581 1,888 1,566 TOTAL STOCK COMPENSATION (3) $ 7,349 $ 5,304 $ 11,766 $ 11,184 _________________ 1. Amounts are recorded in general and administrative expenses on the Consolidated Statements of Operations. 2. Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method | |
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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Basic net income available to common stockholders $ 2,315 $ 3,691 $ 7,297 $ 14,468 Effect of dilutive instruments 18 39 — 146 Diluted net income available to common stockholders $ 2,333 $ 3,730 $ 7,297 $ 14,614 Denominator: Basic weighted average common shares outstanding 151,169,612 153,306,976 150,997,564 153,869,789 Effect of dilutive instruments (1) 1,513,851 2,314,537 305,281 2,645,537 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 152,683,463 155,621,513 151,302,845 156,515,326 Basic earnings per common share $ 0.02 $ 0.02 $ 0.05 $ 0.09 Diluted earnings per common share $ 0.02 $ 0.02 $ 0.05 $ 0.09 ________________ 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 or performance 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 Partners L.P. | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method | |
Schedule of earnings per share | The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income available to common unitholders: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Basic and diluted net income available to common unitholders $ 2,334 $ 3,713 $ 7,366 $ 14,553 Denominator: Basic weighted average common units outstanding 152,551,236 154,218,834 152,369,823 154,781,647 Effect of dilutive instruments (1) 132,227 794,000 305,281 1,125,000 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 152,683,463 155,012,834 152,675,104 155,906,647 Basic earnings per common unit $ 0.02 $ 0.02 $ 0.05 $ 0.09 Diluted earnings per common unit $ 0.02 $ 0.02 $ 0.05 $ 0.09 ________________ |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of redeemable non-controlling interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Series A Redeemable Preferred Units Consolidated Real Estate Entities Series A Redeemable Preferred Units Consolidated Entities BEGINNING OF PERIOD $ 9,815 $ 128,661 $ 9,815 $ 127,874 Contributions — 74 — 1,543 Distributions — (8) — (8) Declared dividend (153) — (306) — Net income (loss) 153 (1,282) 306 (1,964) END OF PERIOD $ 9,815 $ 127,445 $ 9,815 $ 127,445 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of other comprehensive loss | The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive loss (“OCI”): Derivative Instruments Currency Translation Adjustments Total Accumulated Other Comprehensive Loss BALANCE AT DECEMBER 31, 2020 $ (11,378) $ 3,245 $ (8,133) Unrealized (losses) gains recognized in OCI (134) 1,897 1,763 Reclassification adjustment for realized gains (1) 3,634 — 3,634 Net change in OCI 3,500 1,897 5,397 BALANCE AT JUNE 30, 2021 $ (7,878) $ 5,142 $ (2,736) _____________ 1. The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. The table below presents the activity related to Hudson Pacific Properties, L.P.’s OCI: Derivative Instruments Currency Translation Adjustments Total Accumulated Other Comprehensive Loss BALANCE AT DECEMBER 31, 2020 $ (11,485) $ 3,239 $ (8,246) Unrealized (losses) gains recognized in OCI (136) 1,923 1,787 Reclassification adjustment for realized gains (1) 3,683 — 3,683 Net change in OCI 3,547 1,923 5,470 BALANCE AT JUNE 30, 2021 $ (7,938) $ 5,162 $ (2,776) _____________ 1. The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations. |
Schedule of ownership interest in operating partnership | The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of: June 30, 2021 December 31, 2020 Company-owned common units in the operating partnership 152,319,084 151,401,365 Company’s ownership interest percentage 99.1 % 99.1 % Non-controlling units in the operating partnership (1) 1,381,624 1,321,083 Non-controlling ownership interest percentage 0.9 % 0.9 % _________________ 1. Represents common units held by certain of the Company’s executive officers, directors and outside investors. As of June 30, 2021, this amount represents both common units and performance units in the amount of 550,969 and 830,655, respectively. As of December 31, 2020, this amount represents both common units and performance units in the amount of 550,969 and 770,114, respectively. |
Schedule of dividends payable | The following table summarizes dividends declared and paid for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Common stock $ 0.25 $ 0.25 $ 0.50 $ 0.50 Common units $ 0.25 $ 0.25 $ 0.50 $ 0.50 Series A preferred units $ 0.3906 $ 0.3906 $ 0.7812 $ 0.7812 Performance units $ 0.25 $ 0.25 $ 0.50 $ 0.50 Payment date June 28, 2021 June 29, 2020 N/A N/A Record date June 18, 2021 June 19, 2020 N/A N/A |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of operating activity for reporting units | The table below presents the operating activity of the Company’s reportable segments: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Office segment Office revenues $ 195,703 $ 184,308 $ 387,846 $ 370,735 Office expenses (69,111) (64,611) (135,673) (128,471) Office segment profit 126,592 119,697 252,173 242,264 Studio segment Studio revenues 19,899 14,302 40,875 34,102 Studio expenses (12,466) (7,951) (23,919) (18,601) Studio segment profit 7,433 6,351 16,956 15,501 TOTAL SEGMENT PROFIT $ 134,025 $ 126,048 $ 269,129 $ 257,765 Segment revenues $ 215,602 $ 198,610 $ 428,721 $ 404,837 Segment expenses (81,577) (72,562) (159,592) (147,072) TOTAL SEGMENT PROFIT $ 134,025 $ 126,048 $ 269,129 $ 257,765 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 NET INCOME $ 7,030 $ 7,011 $ 18,441 $ 20,960 General and administrative 17,109 17,897 35,558 36,515 Depreciation and amortization 84,178 73,516 166,939 147,279 Income from unconsolidated real estate entities (470) (410) (1,105) (174) Fee income (797) (556) (1,645) (1,166) Interest expense 30,689 27,930 60,975 54,347 Interest income (937) (1,048) (1,934) (2,073) Management services reimbursement income—unconsolidated real estate entities (626) — (626) — Management services expense—unconsolidated real estate entities 626 — 626 — Transaction-related expenses 1,064 157 1,064 259 Unrealized (gain) loss on non-real estate investments (5,018) 2,267 (10,793) 2,848 Other expense (income) 1,177 (716) 1,629 (1,030) TOTAL PROFIT FROM ALL SEGMENTS $ 134,025 $ 126,048 $ 269,129 $ 257,765 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash flow, supplemental information | Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Six Months Ended June 30, 2021 2020 Cash paid for interest, net of capitalized interest $ 56,034 $ 48,794 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ 134,516 $ 162,454 Lease liabilities recorded in connection with right-of-use assets $ 6,688 $ — Nonrefundable deposit for sale of non-controlling interest $ — $ 50,000 Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Six Months Ended June 30, 2021 2020 Cash paid for interest, net of capitalized interest $ 56,034 $ 48,794 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ 134,516 $ 162,454 Lease liabilities recorded in connection with right-of-use assets $ 6,688 $ — Nonrefundable deposit for sale of non-controlling interest $ — $ 50,000 |
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 for Hudson Pacific Properties, Inc: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 |
Schedule of restrictions on 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 for Hudson Pacific Properties, Inc: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Six Months Ended June 30, 2021 2020 BEGINNING OF PERIOD Cash and cash equivalents $ 113,686 $ 46,224 Restricted cash 35,854 12,034 TOTAL $ 149,540 $ 58,258 END OF PERIOD Cash and cash equivalents $ 110,978 $ 45,052 Restricted cash 33,967 11,819 TOTAL $ 144,945 $ 56,871 |
Organization (Details)
Organization (Details) | Jun. 30, 2021ft²property | Dec. 24, 2020 | Jun. 05, 2019 |
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 64 | ||
Area of real estate property (in square feet) | ft² | 20,004,456 | ||
Joint venture, blackstone property partners | |||
Real Estate Properties | |||
Ownership interest (percent) | 20.00% | 20.00% | |
Joint Venture Sunset Glenoaks Studios Property | |||
Real Estate Properties | |||
Ownership interest (percent) | 50.00% | ||
Consolidated portfolio | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 61 | ||
Area of real estate property (in square feet) | ft² | 17,821,598 | ||
Consolidated portfolio | Office | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 52 | ||
Area of real estate property (in square feet) | ft² | 14,092,789 | ||
Consolidated portfolio | Studios | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 3 | ||
Area of real estate property (in square feet) | ft² | 1,224,403 | ||
Consolidated portfolio | Land | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 6 | ||
Area of real estate property (in square feet) | ft² | 2,504,406 | ||
Unconsolidated portfolio | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 3 | ||
Area of real estate property (in square feet) | ft² | 2,182,858 | ||
Unconsolidated portfolio | Joint venture, blackstone property partners | |||
Real Estate Properties | |||
Ownership interest (percent) | 20.00% | ||
Unconsolidated portfolio | Joint Venture Sunset Glenoaks Studios Property | |||
Real Estate Properties | |||
Ownership interest (percent) | 50.00% | ||
Unconsolidated portfolio | Office | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 1 | ||
Area of real estate property (in square feet) | ft² | 1,491,858 | ||
Unconsolidated portfolio | Land | |||
Real Estate Properties | |||
Number of real estate properties (in properties) | property | 2 | ||
Area of real estate property (in square feet) | ft² | 691,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narratives (Details) - jointVenture | Dec. 18, 2020 | Jul. 30, 2020 | Jun. 30, 2021 | Dec. 24, 2020 | Jun. 05, 2019 |
Variable Interest Entity | |||||
Weighted average incremental borrowing rate | 5.60% | ||||
Weighted average remaining lease term (in years) | 30 years | ||||
Joint venture, blackstone property partners | |||||
Variable Interest Entity | |||||
Ownership interest (percent) | 20.00% | 20.00% | |||
Joint Venture Sunset Glenoaks Studios Property | |||||
Variable Interest Entity | |||||
Ownership interest (percent) | 50.00% | ||||
Hollywood Media Portfolio | |||||
Variable Interest Entity | |||||
VIE, ownership Interest | 51.00% | ||||
Hollywood Media Portfolio | Disposed of by Sale | |||||
Variable Interest Entity | |||||
VIE, ownership Interest | 49.00% | ||||
VIE, primary beneficiary | |||||
Variable Interest Entity | |||||
Number of joint ventures meeting VIE definition | 14 | ||||
Number of joint ventures consolidated | 12 | ||||
VIE, primary beneficiary | 1918 Eighth | |||||
Variable Interest Entity | |||||
VIE, ownership Interest | 55.00% | 55.00% | |||
VIE, not primary beneficiary | |||||
Variable Interest Entity | |||||
Number of joint ventures not consolidated | 2 | ||||
VIE, not primary beneficiary | Joint venture, blackstone property partners | |||||
Variable Interest Entity | |||||
Ownership interest (percent) | 20.00% | ||||
VIE, not primary beneficiary | Joint Venture Sunset Glenoaks Studios Property | |||||
Variable Interest Entity | |||||
Ownership interest (percent) | 50.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Consolidated Joint Ventures (Details) - VIE, primary beneficiary | Dec. 18, 2020 | Jun. 30, 2021 |
1455 Market | ||
Variable Interest Entity | ||
VIE, ownership Interest | 55.00% | |
Hill7 | ||
Variable Interest Entity | ||
VIE, ownership Interest | 55.00% | |
One Westside and 10850 Pico | ||
Variable Interest Entity | ||
VIE, ownership Interest | 75.00% | |
Ferry Building | ||
Variable Interest Entity | ||
VIE, ownership Interest | 55.00% | |
Sunset Bronson Studios, ICON, CUE | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
Sunset Gower Studios | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
Sunset Las Palmas Studios, Harlow | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
Sunset Services Holdings, LLC | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
EPIC | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
None (Hudson Media and Entertainment Management) | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
6040 Sunset | ||
Variable Interest Entity | ||
VIE, ownership Interest | 51.00% | |
1918 Eighth | ||
Variable Interest Entity | ||
VIE, ownership Interest | 55.00% | 55.00% |
Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC | Sunset Services Holdings, LLC | ||
Variable Interest Entity | ||
VIE, ownership Interest | 100.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Streams (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue | |||||
Management fee income | $ 797 | $ 556 | $ 1,645 | $ 1,166 | |
Management services reimbursement income | 626 | 0 | 626 | 0 | |
Hudson Pacific Partners L.P. | |||||
Disaggregation of Revenue | |||||
Management fee income | 797 | 556 | 1,645 | 1,166 | |
Management services reimbursement income | 626 | 0 | 626 | 0 | |
Ancillary revenues | |||||
Disaggregation of Revenue | |||||
Service and other revenues | 7,093 | 1,613 | 14,633 | 7,412 | |
Receivables | 1,465 | 1,465 | $ 1,700 | ||
Other revenues | |||||
Disaggregation of Revenue | |||||
Service and other revenues | 3,923 | 3,837 | 6,965 | 9,792 | |
Receivables | 1,215 | 1,215 | $ 1,058 | ||
Studio-related tenant recoveries | |||||
Disaggregation of Revenue | |||||
Service and other revenues | $ 483 | $ 378 | $ 1,006 | $ 823 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Real Estate [Abstract] | ||
Land | $ 1,351,888 | $ 1,351,888 |
Building and improvements | 5,948,317 | 5,840,819 |
Tenant improvements | 742,968 | 728,111 |
Furniture and fixtures | 12,881 | 12,250 |
Property under development | 325,017 | 281,949 |
INVESTMENT IN REAL ESTATE, AT COST | $ 8,381,071 | $ 8,215,017 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) | |
Real Estate [Abstract] | ||
Number of properties acquired | 0 | |
Number of dispositions | 0 | |
Number of real-estate properties classified as held-for-sale | 0 | |
Impairment loss | $ | $ 0 | $ 0 |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Entity - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 24, 2020 | Jun. 05, 2019 |
Joint venture, blackstone property partners | |||
Schedule of Equity Method Investments | |||
Ownership interest (percent) | 20.00% | 20.00% | |
Joint venture, blackstone property partners | Financial guarantee | |||
Schedule of Equity Method Investments | |||
Maximum exposure for guarantee | $ 104.2 | ||
Joint Venture Sunset Glenoaks Studios Property | |||
Schedule of Equity Method Investments | |||
Ownership interest (percent) | 50.00% |
Investment in Unconsolidated _4
Investment in Unconsolidated Real Estate Entity - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||||
Investment in real estate, net | $ 7,156,734 | $ 7,112,269 | ||||
TOTAL ASSETS | 8,425,652 | 8,350,202 | ||||
LIABILITIES | ||||||
TOTAL LIABILITIES | 4,342,586 | 4,244,533 | ||||
TOTAL CAPITAL | 3,945,806 | $ 3,936,240 | 3,967,980 | $ 3,601,631 | $ 3,629,754 | $ 3,709,362 |
TOTAL LIABILITIES AND CAPITAL | 8,425,652 | 8,350,202 | ||||
Equity method investment, nonconsolidated investee or group of investees | ||||||
ASSETS | ||||||
Investment in real estate, net | 880,266 | 855,639 | ||||
Other assets | 42,943 | 51,118 | ||||
TOTAL ASSETS | 923,209 | 906,757 | ||||
LIABILITIES | ||||||
Secured debt, net | 517,377 | 495,771 | ||||
Other liabilities | 39,060 | 52,828 | ||||
TOTAL LIABILITIES | 556,437 | 548,599 | ||||
Company's capital | 83,460 | 80,778 | ||||
Total Hudson Pacific Properties, L.P. partners’ capital | 283,312 | 277,380 | ||||
TOTAL CAPITAL | 366,772 | 358,158 | ||||
TOTAL LIABILITIES AND CAPITAL | $ 923,209 | $ 906,757 |
Investment in Unconsolidated _5
Investment in Unconsolidated Real Estate Entity - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Equity Method Investment, Summarized Financial Information, Income Statement | ||||
TOTAL REVENUES | $ 215,602 | $ 198,610 | $ 428,721 | $ 404,837 |
Net income | 7,030 | 7,011 | 18,441 | 20,960 |
Equity method investment, nonconsolidated investee or group of investees | ||||
Equity Method Investment, Summarized Financial Information, Income Statement | ||||
TOTAL REVENUES | 20,041 | 25,943 | 39,427 | 51,738 |
TOTAL EXPENSES | 17,728 | 23,922 | 33,972 | 50,871 |
Net income | $ 2,313 | $ 2,021 | $ 5,455 | $ 867 |
Deferred Leasing Costs and Le_3
Deferred Leasing Costs and Lease Intangibles, net - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets | ||
Deferred leasing costs and lease intangibles, net | $ 271,201 | $ 285,836 |
Below and above market ground leases, net | 43,364 | 49,144 |
Below-market leases | ||
Finite-Lived Intangible Assets | ||
Below and above market ground leases | 92,181 | 98,365 |
Below and above market ground leases, accumulated amortization | (49,628) | (50,054) |
Below and above market ground leases, net | 42,553 | 48,311 |
Above-market ground leases | ||
Finite-Lived Intangible Assets | ||
Below and above market ground leases | 1,095 | 1,095 |
Below and above market ground leases, accumulated amortization | (284) | (262) |
Below and above market ground leases, net | 811 | 833 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets | ||
Deferred leasing costs and lease intangibles | 351,637 | 352,903 |
Accumulated amortization | (138,852) | (127,180) |
Deferred leasing costs and lease intangibles, net | 212,785 | 225,723 |
Below-market ground leases | ||
Finite-Lived Intangible Assets | ||
Deferred leasing costs and lease intangibles | 72,916 | 72,916 |
Accumulated amortization | (15,028) | (13,831) |
Deferred leasing costs and lease intangibles, net | 57,888 | 59,085 |
Above-market leases | ||
Finite-Lived Intangible Assets | ||
Deferred leasing costs and lease intangibles | 1,984 | 2,802 |
Accumulated amortization | (1,456) | (1,774) |
Deferred leasing costs and lease intangibles, net | $ 528 | $ 1,028 |
Deferred Leasing Costs and Le_4
Deferred Leasing Costs and Lease Intangibles, net - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | $ 5,258 | $ 5,007 | ||
Below-market leases | ||||
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | $ 2,815 | $ 2,622 | 5,758 | 5,360 |
Above Market Ground Leases | ||||
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | 11 | 11 | 22 | 22 |
Leasing costs and in place lease intangibles | ||||
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | (11,654) | (10,129) | (23,221) | (20,864) |
Below-market ground leases | ||||
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | (598) | (599) | (1,197) | (1,198) |
Above-market leases | ||||
Finite-Lived Intangible Assets | ||||
Amortization of above- and below-market leases, net | $ (76) | $ (159) | $ (500) | $ (353) |
Receivables (Details)
Receivables (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Accounts receivable | $ 16,400,000 | $ 22,100,000 |
Accounts receivable, allowance for doubtful accounts | 0 | 0 |
Straight-line rent receivables, gross | 238,800,000 | 226,000,000 |
Allowance for straight-line rent receivables | $ 19,000 | $ 300,000 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets, net - Summarizes of prepaid expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deposits and pre-development costs for future acquisitions | $ 40,470 | $ 28,488 |
Prepaid insurance | 12,550 | 5,100 |
Goodwill | 8,754 | 8,754 |
Non-real estate investments | 21,646 | 4,088 |
Stock purchase warrant | 1,839 | 0 |
Deferred financing costs | 695 | 1,216 |
Prepaid property tax | 0 | 2,138 |
Interest rate cap derivative asset | 5 | 5 |
Other | 25,128 | 22,878 |
PREPAID EXPENSES AND OTHER ASSETS, NET | $ 111,087 | $ 72,667 |
Prepaid Expenses and Other As_4
Prepaid Expenses and Other Assets, net - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investment Holdings | ||||
Unrealized gain (loss) on non-real estate investments | $ 5,018,000 | $ (2,267,000) | $ 10,793,000 | $ (2,848,000) |
Gain (loss) recognized on stock purchase warrant | (100,000) | 0 | 1,800,000 | 0 |
Non Real Estate Investment That Does Not Report NAV | ||||
Investment Holdings | ||||
Unrealized gain (loss) on non-real estate investments | $ 5,100,000 | $ (700,000) | $ 9,000,000 | $ (1,200,000) |
Debt - Summary of Outstanding I
Debt - Summary of Outstanding Indebtedness (Details) | 6 Months Ended | |
Jun. 30, 2021USD ($)propertyextension_option | Dec. 31, 2020USD ($) | |
Debt Instrument | ||
Duration used in interest rate calculation (in days) | 360 days | |
Hollywood Media Portfolio | Investee | ||
Debt Instrument | ||
Notes receivable | $ 107,800,000 | |
Hollywood Media Portfolio | Investee | Blackstone | ||
Debt Instrument | ||
Notes receivable | $ 12,500,000 | |
Hollywood Media Portfolio | ||
Debt Instrument | ||
VIE, ownership Interest | 51.00% | |
1918 Eighth | ||
Debt Instrument | ||
VIE, ownership Interest | 55.00% | |
Hill7 | ||
Debt Instrument | ||
VIE, ownership Interest | 55.00% | |
One Westside and 10850 Pico | VIE, primary beneficiary | ||
Debt Instrument | ||
VIE, ownership Interest | 75.00% | |
Interest rate swaps | Designated as hedging Instrument | ||
Debt Instrument | ||
Notional amount | $ 475,000,000 | $ 475,000,000 |
10950 Washington | ||
Debt Instrument | ||
Service payment term (in years) | 30 years | |
Hollywood Media Portfolio B | Interest rate swaps | Designated as hedging Instrument | ||
Debt Instrument | ||
Notional amount | $ 350,000,000 | |
Hollywood Media Portfolio B | LIBOR | Interest rate swaps | Designated as hedging Instrument | ||
Debt Instrument | ||
Derivative, basis spread on variable rate | 1.76% | |
Hollywood Media Portfolio D | Interest rate swaps | Designated as hedging Instrument | ||
Debt Instrument | ||
Notional amount | $ 125,000,000 | |
Hollywood Media Portfolio D | LIBOR | Interest rate swaps | Designated as hedging Instrument | ||
Debt Instrument | ||
Derivative, basis spread on variable rate | 1.43% | |
Unsecured and Secured Debt | ||
Debt Instrument | ||
Debt | $ 3,518,813,000 | 3,432,276,000 |
Unamortized deferred financing costs and loan discounts/premium | (27,770,000) | (32,784,000) |
TOTAL UNSECURED AND SECURED DEBT, NET | 3,491,043,000 | 3,399,492,000 |
Unsecured debt | ||
Debt Instrument | ||
Debt | 1,925,000,000 | 1,925,000,000 |
Unsecured debt | Series A notes | ||
Debt Instrument | ||
Debt | $ 110,000,000 | 110,000,000 |
Interest rate | 4.34% | |
Unsecured debt | Series B notes | ||
Debt Instrument | ||
Debt | $ 259,000,000 | 259,000,000 |
Interest rate | 4.69% | |
Unsecured debt | Series C notes | ||
Debt Instrument | ||
Debt | $ 56,000,000 | 56,000,000 |
Interest rate | 4.79% | |
Unsecured debt | Series D notes | ||
Debt Instrument | ||
Debt | $ 150,000,000 | 150,000,000 |
Interest rate | 3.98% | |
Unsecured debt | Series E notes | ||
Debt Instrument | ||
Debt | $ 50,000,000 | 50,000,000 |
Interest rate | 3.66% | |
Unsecured debt | 3.95% Registered senior notes | ||
Debt Instrument | ||
Debt | $ 400,000,000 | 400,000,000 |
Interest rate | 3.95% | |
Unsecured debt | 4.65% Registered senior notes | ||
Debt Instrument | ||
Debt | $ 500,000,000 | 500,000,000 |
Interest rate | 4.65% | |
Unsecured debt | 3.25% Registered senior notes | ||
Debt Instrument | ||
Debt | $ 400,000,000 | 400,000,000 |
Interest rate | 3.25% | |
Unsecured debt | Revolving credit facility | ||
Debt Instrument | ||
Debt | $ 0 | 0 |
Total borrowing capacity | $ 600,000,000 | 600,000,000 |
Extension term (in years) | 1 year | |
Unsecured debt | Revolving credit facility | LIBOR | Low | ||
Debt Instrument | ||
Basis spread on variable rate | 1.05% | |
Unsecured debt | Revolving credit facility | LIBOR | High | ||
Debt Instrument | ||
Basis spread on variable rate | 1.50% | |
Secured debt | ||
Debt Instrument | ||
Debt | $ 1,593,813,000 | 1,507,276,000 |
Secured debt | Hollywood Media Portfolio, net | ||
Debt Instrument | ||
Debt | $ 792,186,000 | 792,186,000 |
Extension term (in years) | 1 year | |
Face amount | $ 900,000,000 | |
Debt instrument, term (in years) | 2 years | |
Debt instrument, number of extension options | property | 3 | |
Secured debt | Hollywood Media Portfolio, net | LIBOR | ||
Debt Instrument | ||
Basis spread on variable rate | 2.15% | |
Secured debt | 10950 Washington | ||
Debt Instrument | ||
Debt | $ 25,404,000 | 25,717,000 |
Interest rate | 5.32% | |
Secured debt | One Westside and 10850 Pico | ||
Debt Instrument | ||
Debt | $ 192,923,000 | 106,073,000 |
Face amount | $ 414,600,000 | |
Secured debt | One Westside and 10850 Pico | LIBOR | ||
Debt Instrument | ||
Basis spread on variable rate | 1.70% | |
Secured debt | Element LA | ||
Debt Instrument | ||
Debt | $ 168,000,000 | 168,000,000 |
Interest rate | 4.59% | |
Secured debt | 1918 Eighth | ||
Debt Instrument | ||
Debt | $ 314,300,000 | 314,300,000 |
Debt instrument, term (in years) | 5 years | |
Secured debt | 1918 Eighth | LIBOR | ||
Debt Instrument | ||
Basis spread on variable rate | 1.70% | |
Secured debt | Hill7 | ||
Debt Instrument | ||
Debt | $ 101,000,000 | 101,000,000 |
Interest rate | 3.38% | |
In-substance defeased debt | ||
Debt Instrument | ||
Debt | $ 129,971,000 | 131,707,000 |
TOTAL UNSECURED AND SECURED DEBT, NET | $ 129,971,000 | 131,707,000 |
Interest rate | 4.47% | |
Service payment term (in years) | 10 years | |
Joint venture partner debt | ||
Debt Instrument | ||
Debt | $ 66,136,000 | 66,136,000 |
TOTAL UNSECURED AND SECURED DEBT, NET | $ 66,136,000 | $ 66,136,000 |
Interest rate | 4.50% | |
Debt instrument, number of extension options | extension_option | 2 | |
Debt Instrument, first renewal term (in years) | 2 years | |
Debt Instrument, second renewal term (in years) | 2 years |
Debt - Narrative (Details)
Debt - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021USD ($)propertyextension_option | |
Hollywood Media Portfolio | Investee | |
Debt Instrument | |
Notes receivable | $ 107,800,000 |
Blackstone | Hollywood Media Portfolio | Investee | |
Debt Instrument | |
Notes receivable | $ 12,500,000 |
Joint venture partner debt | |
Debt Instrument | |
Debt instrument, number of extension options | extension_option | 2 |
Secured debt | Hollywood Media Portfolio, net | |
Debt Instrument | |
Face amount | $ 900,000,000 |
Debt instrument, term (in years) | 2 years |
Debt instrument, number of extension options | property | 3 |
Extension term (in years) | 1 year |
Revolving credit facility | |
Debt Instrument | |
Increase in borrowings, net of draws | $ 0 |
Revolving credit facility | Unsecured debt | |
Debt Instrument | |
Extension term (in years) | 1 year |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Unsecured and Secured Debt | ||
Debt Instrument | ||
Remaining 2021 | $ 319 | |
2022 | 817,271 | |
2023 | 352,923 | |
2024 | 0 | |
2025 | 741,300 | |
Thereafter | 1,607,000 | |
Total | 3,518,813 | $ 3,432,276 |
In-substance defeased debt | ||
Debt Instrument | ||
Remaining 2021 | 1,758 | |
2022 | 128,213 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total | 129,971 | 131,707 |
Joint venture partner debt | ||
Debt Instrument | ||
Remaining 2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 66,136 | |
Total | $ 66,136 | $ 66,136 |
Debt - Unsecured Revolving Cred
Debt - Unsecured Revolving Credit Facility (Details) - Unsecured debt - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Line of Credit Facility | ||
Outstanding borrowings | $ 1,925,000,000 | $ 1,925,000,000 |
Revolving credit facility | ||
Line of Credit Facility | ||
Outstanding borrowings | 0 | 0 |
Remaining borrowing capacity | 600,000,000 | 600,000,000 |
TOTAL BORROWING CAPACITY | $ 600,000,000 | $ 600,000,000 |
Extension period (in years) | 1 year | |
Revolving credit facility | Low | ||
Line of Credit Facility | ||
Annual facility fee rate | 0.15% | |
Revolving credit facility | High | ||
Line of Credit Facility | ||
Annual facility fee rate | 0.30% | |
Revolving credit facility | LIBOR | Low | ||
Line of Credit Facility | ||
Basis spread on variable rate | 1.05% | |
Revolving credit facility | LIBOR | High | ||
Line of Credit Facility | ||
Basis spread on variable rate | 1.50% |
Debt - Covenant Summaries (Deta
Debt - Covenant Summaries (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Instrument | |
Total liabilities to total asset value | 60.00% |
Total liabilities to total asset value, actual | 39.40% |
Unsecured indebtedness to unencumbered asset value | 60.00% |
Unsecured indebtedness to unencumbered asset value, actual | 37.70% |
Adjusted EBITDA to fixed charges | 1.5 |
Adjusted EBITDA to fixed charges, actual | 3.6 |
Secured indebtedness to total asset value | 45.00% |
Secured indebtedness to total asset value, actual | 18.70% |
Unencumbered NOI to unsecured interest expense | 2 |
Unencumbered NOI to unsecured interest expense, actual | 3.4 |
Debt to total assets | 60.00% |
Debt to total assets, actual | 41.00% |
Total unencumbered assets to unsecured debt | 150.00% |
Total unencumbered assets to unsecured debt, actual | 291.70% |
Consolidated income available for debt service to annual debt service charge | 1.5 |
Consolidated income available for debt service to annual debt service charge, actual | 3.8 |
Secured debt to total assets | 45.00% |
Secured debt to total assets, actual | 19.20% |
Unsecured debt | 3.25% Registered senior notes | |
Debt Instrument | |
Interest rate | 3.25% |
Unsecured debt | 3.95% Registered senior notes | |
Debt Instrument | |
Interest rate | 3.95% |
Unsecured debt | 4.65% Registered senior notes | |
Debt Instrument | |
Interest rate | 4.65% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||||
Gross interest expense | $ 33,889 | $ 31,165 | $ 67,429 | $ 61,451 |
Capitalized interest | (5,618) | (4,479) | (11,289) | (9,593) |
Amortization of deferred financing costs and loan discounts/premiums | 2,418 | 1,244 | 4,835 | 2,489 |
Interest Expense | $ 30,689 | $ 27,930 | $ 60,975 | $ 54,347 |
Derivatives (Details)
Derivatives (Details) | 6 Months Ended | ||||
Jun. 30, 2021USD ($)derivative | Jun. 30, 2021USD ($) | Jun. 30, 2021instrument | Jun. 30, 2021 | Dec. 31, 2020USD ($)derivative | |
Derivative | |||||
Unrealized loss expected to be reclassified to interest expense in next 12 months | $ 6,000,000 | ||||
Designated as hedging Instrument | Interest rate swaps | |||||
Derivative | |||||
Number of Derivatives | derivative | 3 | 3 | |||
Notional Amount | $ 475,000,000 | $ 475,000,000 | |||
Fair Value (Liabilities) Assets | (6,527,000) | (10,101,000) | |||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio B | |||||
Derivative | |||||
Number of Derivatives | instrument | 2 | ||||
Notional Amount | 350,000,000 | ||||
Fair Value (Liabilities) Assets | (4,341,000) | (7,112,000) | |||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio B | Low | |||||
Derivative | |||||
Interest rate | 2.96% | ||||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio B | High | |||||
Derivative | |||||
Interest rate | 3.46% | ||||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio D | |||||
Derivative | |||||
Number of Derivatives | instrument | 1 | ||||
Notional Amount | 125,000,000 | ||||
Fair Value (Liabilities) Assets | (2,191,000) | $ (2,994,000) | |||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio D | Low | |||||
Derivative | |||||
Interest rate | 2.63% | ||||
Designated as hedging Instrument | Interest rate swaps | Hollywood Media Portfolio D | High | |||||
Derivative | |||||
Interest rate | 3.13% | ||||
Designated as hedging Instrument | Interest rate cap | Hollywood Media Portfolio, net | |||||
Derivative | |||||
Number of Derivatives | 1 | 1 | 1 | ||
Notional Amount | 900,000,000 | $ 900,000,000 | |||
Strike rate | 35.00% | ||||
Fair Value (Liabilities) Assets | $ 5,000 | $ 5,000 |
U.S. Government Securities (Det
U.S. Government Securities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 4,200,000 | |
Gross unrealized losses | 0 | |
Carrying Value | ||
Due in 1 year | 132,222,000 | |
TOTAL | 132,222,000 | $ 135,115,000 |
Fair Value | ||
Due in 1 year | 136,436,000 | |
TOTAL | $ 136,436,000 |
Income Taxes (Details)
Income Taxes (Details) | Jun. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Liability for uncertainty in income taxes, noncurrent | $ 0 |
Future Minimum Rents and Leas_3
Future Minimum Rents and Lease Payments - Future Minimum Base Rents Receivable (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Operating Leases, Future Minimum Payments Receivable | |
2021 | $ 315,234 |
2022 | 610,370 |
2023 | 571,958 |
2024 | 504,842 |
2025 | 401,774 |
Thereafter | 1,721,151 |
TOTAL | 4,125,329 |
Non-cancellable | |
Operating Leases, Future Minimum Payments Receivable | |
2021 | 311,520 |
2022 | 594,199 |
2023 | 548,483 |
2024 | 486,552 |
2025 | 347,429 |
Thereafter | 1,514,190 |
TOTAL | 3,802,373 |
Subject to Early Termination Options | |
Operating Leases, Future Minimum Payments Receivable | |
2021 | 3,714 |
2022 | 16,171 |
2023 | 23,475 |
2024 | 18,290 |
2025 | 54,345 |
Thereafter | 206,961 |
TOTAL | $ 322,956 |
Future Minimum Rents and Leas_4
Future Minimum Rents and Lease Payments - Narratives (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease payment | $ 605,859 | |
Operating lease liabilities | 274,408 | $ 270,014 |
Operating lease right-of-use assets | $ 268,537 | $ 264,880 |
Future Minimum Rents and Leas_5
Future Minimum Rents and Lease Payments - Future Minimum Payments Due (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lessee, Operating Lease, Liability, Payment, Due | ||
2021 | $ 9,666 | |
2022 | 19,341 | |
2023 | 19,129 | |
2024 | 19,096 | |
2025 | 19,109 | |
Thereafter | 519,518 | |
Total operating lease payments | 605,859 | |
Less: interest portion | (331,451) | |
PRESENT VALUE OF OPERATING LEASE LIABILITIES | $ 274,408 | $ 270,014 |
Future Minimum Rents and Leas_6
Future Minimum Rents and Lease Payments - Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Variable rental expense | $ 2,494 | $ 2,100 | $ 5,108 | $ 4,256 |
Minimum rental expense | $ 5,551 | $ 4,991 | $ 10,542 | $ 9,982 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Assets And Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate cap derivative asset | $ 5 | $ 5 |
Interest rate swap derivative liabilities | (6,532) | (10,106) |
Stock purchase warrant | 1,839 | 0 |
Non-real estate investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | 3,702 | 750 |
Non-real estate investments measured at NAV | 17,944 | 3,338 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate cap derivative asset | 0 | 0 |
Interest rate swap derivative liabilities | 0 | 0 |
Stock purchase warrant | 0 | 0 |
Level 1 | Non-real estate investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | 2,030 | 0 |
Non-real estate investments measured at NAV | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate cap derivative asset | 5 | 5 |
Interest rate swap derivative liabilities | (6,532) | (10,106) |
Stock purchase warrant | 1,839 | 0 |
Level 2 | Non-real estate investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | 1,672 | 750 |
Non-real estate investments measured at NAV | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Interest rate cap derivative asset | 0 | 0 |
Interest rate swap derivative liabilities | 0 | 0 |
Stock purchase warrant | 0 | 0 |
Level 3 | Non-real estate investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | 0 | 0 |
Non-real estate investments measured at NAV | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Investment in Securities and Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | $ 132,222 | $ 135,115 |
Carrying Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,925,000 | 1,925,000 |
Carrying Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,593,813 | 1,507,276 |
Carrying Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 129,971 | 131,707 |
Carrying Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 66,136 | 66,136 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments measured at fair value | 136,436 | 140,270 |
Fair Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,058,872 | 2,072,833 |
Fair Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 1,592,751 | 1,503,960 |
Fair Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 130,267 | 131,633 |
Fair Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | $ 69,288 | $ 68,346 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Existing and newly elected board member | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Employees | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
OPP plan | Tranche one | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Award vesting percentage after initial performance period | 50.00% |
OPP plan | Tranche two | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Award vesting rights | 50.00% |
Award mandatory holding period (in years) | 2 years |
PSU plan 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Post vesting period (in years) | 2 years |
PSU plan 2020 | Tranche one | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award performance period (in years) | 3 years |
PSU plan 2020 | Tranche two | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Award vesting period (in years) | 3 years |
Award performance period (in years) | 1 year |
Stock-based Compensation - Comp
Stock-based Compensation - Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Employee stock compensation | $ 6,340 | $ 4,723 | $ 9,878 | $ 9,618 |
Capitalized stock compensation | 1,009 | 581 | 1,888 | 1,566 |
Total stock compensation | $ 7,349 | $ 5,304 | $ 11,766 | $ 11,184 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||||
Basic net income available to common stockholders | $ 2,315 | $ 3,691 | $ 7,297 | $ 14,468 |
Effect of dilutive instruments | 18 | 39 | 0 | 146 |
Diluted net income available to common stockholders | $ 2,333 | $ 3,730 | $ 7,297 | $ 14,614 |
Denominator: | ||||
Basic weighted average common shares outstanding (in shares) | 151,169,612 | 153,306,976 | 150,997,564 | 153,869,789 |
Effect of dilutive instruments (in shares) | 1,513,851 | 2,314,537 | 305,281 | 2,645,537 |
Diluted weighted average common shares outstanding (in shares) | 152,683,463 | 155,621,513 | 151,302,845 | 156,515,326 |
Basic (loss) earnings per common share (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Diluted (loss) earnings per common share (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Hudson Pacific Partners L.P. | ||||
Numerator: | ||||
Basic net income available to common stockholders | $ 2,334 | $ 3,713 | $ 7,366 | $ 14,553 |
Diluted net income available to common stockholders | $ 2,334 | $ 3,713 | $ 7,366 | $ 14,553 |
Denominator: | ||||
Basic weighted average common units outstanding (in shares) | 152,551,236 | 154,218,834 | 152,369,823 | 154,781,647 |
Effect of dilutive instruments (in shares) | 132,227 | 794,000 | 305,281 | 1,125,000 |
Diluted weighted average common units outstanding (in shares) | 152,683,463 | 155,012,834 | 152,675,104 | 155,906,647 |
Basic earnings per common unit (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Diluted earnings per common unit (in dollars per share) | $ 0.02 | $ 0.02 | $ 0.05 | $ 0.09 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest (Details) - $ / shares | Oct. 09, 2018 | Aug. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2020 |
HPP-MAC WSP, LLC | VIE, primary beneficiary | ||||
Temporary Equity | ||||
VIE, ownership Interest | 75.00% | |||
Ferry Building | VIE, primary beneficiary | ||||
Temporary Equity | ||||
VIE, ownership Interest | 55.00% | |||
Series A redeemable preferred units | ||||
Temporary Equity | ||||
Preferred A shares outstanding (in shares) | 392,598 | 392,598 | ||
Distribution rate of preferred stock | 6.25% | |||
Redeemable non-controlling interest, liquidation preference (in dollars per share) | $ 25 |
Redeemable Non-Controlling In_4
Redeemable Non-Controlling Interest - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
VIE, primary beneficiary | ||
Increase (Decrease) in Temporary Equity | ||
BEGINNING OF PERIOD | $ 128,661 | $ 127,874 |
Contributions | 74 | 1,543 |
Distributions | (8) | |
Declared dividend | 0 | 0 |
Net income (loss) | (1,282) | (1,964) |
END OF PERIOD | 127,445 | 127,445 |
Series A redeemable preferred units | ||
Increase (Decrease) in Temporary Equity | ||
BEGINNING OF PERIOD | 9,815 | 9,815 |
Contributions | 0 | 0 |
Distributions | 0 | |
Declared dividend | (153) | (306) |
Net income (loss) | 153 | 306 |
END OF PERIOD | $ 9,815 | $ 9,815 |
Equity - Comprehensive Income H
Equity - Comprehensive Income Hudson Pacific Properties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | $ 3,936,240 | $ 3,629,754 | $ 3,967,980 | $ 3,709,362 |
Unrealized (losses) gains recognized in OCI | 1,763 | |||
Reclassification adjustment for realized gains | 3,634 | |||
Total other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | 3,945,806 | 3,601,631 | 3,945,806 | 3,601,631 |
Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (5,327) | (17,804) | (8,133) | (561) |
Total other comprehensive income (loss) | 2,591 | 1,916 | 5,397 | (15,327) |
Ending balance | (2,736) | $ (15,888) | (2,736) | $ (15,888) |
Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (11,378) | |||
Unrealized (losses) gains recognized in OCI | (134) | |||
Reclassification adjustment for realized gains | 3,634 | |||
Total other comprehensive income (loss) | 3,500 | |||
Ending balance | (7,878) | (7,878) | ||
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 3,245 | |||
Unrealized (losses) gains recognized in OCI | 1,897 | |||
Reclassification adjustment for realized gains | 0 | |||
Total other comprehensive income (loss) | 1,897 | |||
Ending balance | $ 5,142 | $ 5,142 |
Equity - Comprehensive Income L
Equity - Comprehensive Income LP (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Unrealized (losses) gains recognized in OCI | $ 1,763 | |||
Reclassification adjustment for realized gains | 3,634 | |||
Total other comprehensive income (loss) | $ 2,626 | $ 1,935 | 5,470 | $ (15,479) |
Hudson Pacific Partners L.P. | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 3,936,240 | 3,629,754 | 3,967,980 | 3,709,362 |
Unrealized (losses) gains recognized in OCI | 1,787 | |||
Reclassification adjustment for realized gains | 3,683 | |||
Total other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | 3,945,806 | 3,601,631 | 3,945,806 | 3,601,631 |
Hudson Pacific Partners L.P. | Accumulated Other Comprehensive Loss | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (5,402) | (18,027) | (8,246) | (613) |
Total other comprehensive income (loss) | 2,626 | 1,935 | 5,470 | (15,479) |
Ending balance | (2,776) | $ (16,092) | (2,776) | $ (16,092) |
Hudson Pacific Partners L.P. | Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | (11,485) | |||
Unrealized (losses) gains recognized in OCI | (136) | |||
Reclassification adjustment for realized gains | 3,683 | |||
Total other comprehensive income (loss) | 3,547 | |||
Ending balance | (7,938) | (7,938) | ||
Hudson Pacific Partners L.P. | Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Beginning balance | 3,239 | |||
Unrealized (losses) gains recognized in OCI | 1,923 | |||
Reclassification adjustment for realized gains | 0 | |||
Total other comprehensive income (loss) | 1,923 | |||
Ending balance | $ 5,162 | $ 5,162 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) | 6 Months Ended | |
Jun. 30, 2021shares | Dec. 31, 2020shares | |
Class of Stock | ||
Common stock/units, outstanding (in shares) | 152,319,084 | 151,401,365 |
Hudson Pacific Partners L.P. | ||
Class of Stock | ||
Company’s ownership interest percentage | 99.10% | 99.10% |
Hudson Pacific Partners L.P. | Company-owned common units in the operating partnership | ||
Class of Stock | ||
Common stock/units, outstanding (in shares) | 152,319,084 | 151,401,365 |
Noncontrolling interest in operating partnership | ||
Class of Stock | ||
Non-controlling ownership interest percentage | 0.90% | 0.90% |
Non-controlling common units in the operating partnership - common units (in shares) | 550,969 | 550,969 |
Non-controlling common units in the operating partnership - preferred units (in shares) | 830,655 | 770,114 |
Noncontrolling interest in operating partnership | Common units | ||
Class of Stock | ||
Non-controlling units in the operating partnership (in shares) | 1,381,624 | 1,321,083 |
Performance units | ||
Class of Stock | ||
Conversion ratio | 1 |
Equity - Additional Information
Equity - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($)$ / sharesshares | |
Class of Stock | ||
Proceeds from sale of common stock, net of transaction costs | $ 44,820,000 | $ 44,820,000 |
Stock repurchase program, amount authorized | 250,000,000 | 250,000,000 |
Share repurchased net | 14,700,000 | |
Stock repurchase program, repurchase of common stock, cumulative | 144,900,000 | 144,900,000 |
At-the-Market | ||
Class of Stock | ||
Maximum sales authorized | $ 125,000,000 | |
Shares issued (in shares) | shares | 1,526,163,000,000 | |
Proceeds from sale of common stock, net of transaction costs | $ 45,700,000 | |
Cumulative total sold | $ 65,800,000 | $ 65,800,000 |
Low | At-the-Market | ||
Class of Stock | ||
Shares issued price per share (usd per share) | $ / shares | $ 29,530,000 | $ 29,530,000 |
High | At-the-Market | ||
Class of Stock | ||
Shares issued price per share (usd per share) | $ / shares | $ 30,170,000 | $ 30,170,000 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Class of Stock | ||||
Common stock, dividends (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.50 |
Common stock, dividends, cash paid (in dollars per share) | 0.25 | 0.25 | 0.50 | 0.50 |
Common units, dividends (in dollars per share) | 0.25 | 0.25 | 0.50 | 0.50 |
Common units, dividends, cash paid (in dollars per share) | 0.25 | 0.25 | 0.50 | 0.50 |
Series A preferred stock, dividends, cash paid (in dollars per share) | 0.3906 | 0.3906 | ||
Performance units, dividends, cash paid (in dollars per share) | 0.25 | 0.25 | 0.50 | 0.50 |
Performance units, dividends (in dollars per share) | 0.25 | 0.25 | 0.50 | 0.50 |
Series A preferred units | ||||
Class of Stock | ||||
Series A preferred units, dividends (in dollars per share) | $ 0.3906 | $ 0.3906 | 0.7812 | 0.7812 |
Series A preferred stock, dividends, cash paid (in dollars per share) | $ 0.7812 | $ 0.7812 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021property | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Operating A
Segment Reporting - Operating Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
TOTAL REVENUES | $ 215,602 | $ 198,610 | $ 428,721 | $ 404,837 |
Operating expenses | (81,577) | (72,562) | (159,592) | (147,072) |
TOTAL PROFIT FROM ALL SEGMENTS | 134,025 | 126,048 | 269,129 | 257,765 |
Office segment | ||||
Segment Reporting Information | ||||
TOTAL REVENUES | 195,703 | 184,308 | 387,846 | 370,735 |
Operating expenses | (69,111) | (64,611) | (135,673) | (128,471) |
TOTAL PROFIT FROM ALL SEGMENTS | 126,592 | 119,697 | 252,173 | 242,264 |
Studio segment | ||||
Segment Reporting Information | ||||
TOTAL REVENUES | 19,899 | 14,302 | 40,875 | 34,102 |
Operating expenses | (12,466) | (7,951) | (23,919) | (18,601) |
TOTAL PROFIT FROM ALL SEGMENTS | $ 7,433 | $ 6,351 | $ 16,956 | $ 15,501 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting [Abstract] | ||||
Net income | $ 7,030 | $ 7,011 | $ 18,441 | $ 20,960 |
General and administrative | 17,109 | 17,897 | 35,558 | 36,515 |
Depreciation and amortization | 84,178 | 73,516 | 166,939 | 147,279 |
Income from unconsolidated real estate entities | (470) | (410) | (1,105) | (174) |
Fee income | (797) | (556) | (1,645) | (1,166) |
Interest expense | 30,689 | 27,930 | 60,975 | 54,347 |
Interest income | (937) | (1,048) | (1,934) | (2,073) |
Management services reimbursement income—unconsolidated real estate entities | 626 | 0 | 626 | 0 |
Management services expense—unconsolidated real estate entities | 626 | 0 | 626 | 0 |
Transaction-related expenses | 1,064 | 157 | 1,064 | 259 |
Unrealized (gain) loss on non-real estate investments | (5,018) | 2,267 | (10,793) | 2,848 |
Other expense (income) | 1,177 | (716) | 1,629 | (1,030) |
TOTAL PROFIT FROM ALL SEGMENTS | $ 134,025 | $ 126,048 | $ 269,129 | $ 257,765 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Related Party Transaction | ||
Operating lease right-of-use assets | $ 268,537 | $ 264,880 |
Operating lease liabilities | 274,408 | $ 270,014 |
Rent expense | 600 | |
Office Space and Fitness Facility | ||
Related Party Transaction | ||
Operating lease right-of-use assets | 6,000 | |
Operating lease liabilities | $ 6,100 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Capital Addition Purchase Commitments | |
Loss Contingencies | |
Commitments | $ 163.2 |
Unsecured debt | Revolving credit facility | |
Loss Contingencies | |
Letters of credit, amount outstanding | 2.8 |
Real estate technology venture capital fund | |
Loss Contingencies | |
Commitments | 28 |
Investment, contributions to date | 12.6 |
Commitment remaining contribution amount | $ 15.4 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of capitalized interest | $ 56,034 | $ 48,794 |
Non-cash investing and financing activities | ||
Accounts payable and accrued liabilities for real estate investments | 134,516 | 162,454 |
Lease liabilities recorded in connection with right-of-use assets | 6,688 | 0 |
Nonrefundable deposit for sale of non-controlling interest | 0 | 50,000 |
Hudson Pacific Partners L.P. | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for interest, net of capitalized interest | 56,034 | 48,794 |
Non-cash investing and financing activities | ||
Accounts payable and accrued liabilities for real estate investments | 134,516 | 162,454 |
Lease liabilities recorded in connection with right-of-use assets | 6,688 | 0 |
Nonrefundable deposit for sale of non-controlling interest | $ 0 | $ 50,000 |
Supplemental Cash Flow Inform_4
Supplemental Cash Flow Information - Cash Rollforward (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents | ||||
Cash and cash equivalents | $ 110,978 | $ 113,686 | $ 45,052 | $ 46,224 |
Restricted cash | 33,967 | 35,854 | 11,819 | 12,034 |
TOTAL | 144,945 | 149,540 | 56,871 | 58,258 |
Hudson Pacific Partners L.P. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents | 110,978 | 113,686 | 45,052 | 46,224 |
Restricted cash | 33,967 | 35,854 | 11,819 | 12,034 |
TOTAL | $ 144,945 | $ 149,540 | $ 56,871 | $ 58,258 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent event $ in Millions | Jul. 29, 2021USD ($)ft² | Jul. 22, 2021USD ($) |
Corporate Joint Venture | Joint Venture With Blackstone Affiliate | ||
Subsequent Event | ||
Non-controlling ownership interest percentage | 35.00% | |
Land Outside Of London, United Kingdom | Corporate Joint Venture | ||
Subsequent Event | ||
Area of real estate property (in square feet) | ft² | 91 | |
Payments to acquire land | $ 167.5 | |
Revolving credit facility | Unsecured debt | ||
Subsequent Event | ||
Proceeds from lines of credit | $ 50 |