Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Hudson Pacific Properties, Inc. | |
Entity Central Index Key | 1,482,512 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 119,507,748 | |
Hudson Pacific Partners L.P. | ||
Entity Information [Line Items] | ||
Entity Registrant Name | Hudson Pacific Properties, L.P. | |
Entity Central Index Key | 1,496,264 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
REAL ESTATE ASSETS | ||
Land | $ 1,252,484 | $ 1,252,484 |
Building and improvements | 4,256,406 | 3,887,683 |
Tenant improvements | 335,205 | 290,122 |
Furniture and fixtures | 4,277 | 9,586 |
Property under development | 266,594 | 218,438 |
Total real estate held for investment | 6,114,966 | 5,658,313 |
Accumulated depreciation and amortization | (380,662) | (267,855) |
Investment in real estate, net | 5,734,304 | 5,390,458 |
Cash and cash equivalents | 89,354 | 53,551 |
Restricted cash | 22,103 | 18,010 |
Accounts receivable, net | 9,621 | 21,048 |
Notes receivable, net | 0 | 28,684 |
Straight-line rent receivables, net | 78,282 | 59,408 |
Deferred leasing costs and lease intangible assets, net | 289,682 | 314,483 |
Derivative assets | 0 | 2,061 |
Goodwill | 8,754 | 8,754 |
Prepaid expenses and other assets, net | 40,227 | 27,278 |
Investment in unconsolidated entity | 28,705 | 0 |
Assets associated with real estate held for sale | 62,323 | 330,300 |
TOTAL ASSETS | 6,363,355 | 6,254,035 |
LIABILITIES | ||
Notes payable, net | 2,407,943 | 2,260,716 |
Accounts payable and accrued liabilities | 132,140 | 82,405 |
Lease intangible liabilities, net | 77,081 | 94,446 |
Security deposits | 25,537 | 20,342 |
Prepaid rent | 27,150 | 38,111 |
Derivative liabilities | 22,413 | 2,010 |
Liabilities associated with real estate held for sale | 14,542 | 16,791 |
TOTAL LIABILITIES | 2,706,806 | 2,514,821 |
6.25% series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Common stock, $0.01 par value, 490,000,000 authorized, 118,746,571 shares and 89,153,780 shares outstanding at September 30, 2016 and December 31, 2015, respectively | 1,187 | 891 |
Additional paid-in capital | 2,589,424 | 1,710,979 |
Accumulated other comprehensive loss | (13,639) | (1,081) |
Accumulated deficit | (39,427) | (44,955) |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 2,537,545 | 1,665,834 |
Partners’ capital: | ||
TOTAL EQUITY | 3,646,372 | 3,729,037 |
TOTAL LIABILITIES AND EQUITY | 6,363,355 | 6,254,035 |
Hudson Pacific Partners L.P. | ||
REAL ESTATE ASSETS | ||
Land | 1,252,484 | 1,252,484 |
Building and improvements | 4,256,406 | 3,887,683 |
Tenant improvements | 335,205 | 290,122 |
Furniture and fixtures | 4,277 | 9,586 |
Property under development | 266,594 | 218,438 |
Total real estate held for investment | 6,114,966 | 5,658,313 |
Accumulated depreciation and amortization | (380,662) | (267,855) |
Investment in real estate, net | 5,734,304 | 5,390,458 |
Cash and cash equivalents | 89,354 | 53,551 |
Restricted cash | 22,103 | 18,010 |
Accounts receivable, net | 9,621 | 21,048 |
Notes receivable, net | 0 | 28,684 |
Straight-line rent receivables, net | 78,282 | 59,408 |
Deferred leasing costs and lease intangible assets, net | 289,682 | 314,483 |
Derivative assets | 0 | 2,061 |
Goodwill | 8,754 | 8,754 |
Prepaid expenses and other assets, net | 40,227 | 27,278 |
Investment in unconsolidated entity | 28,705 | 0 |
Assets associated with real estate held for sale | 62,323 | 330,300 |
TOTAL ASSETS | 6,363,355 | 6,254,035 |
LIABILITIES | ||
Notes payable, net | 2,407,943 | 2,260,716 |
Accounts payable and accrued liabilities | 132,140 | 82,405 |
Lease intangible liabilities, net | 77,081 | 94,446 |
Security deposits | 25,537 | 20,342 |
Prepaid rent | 27,150 | 38,111 |
Derivative liabilities | 22,413 | 2,010 |
Liabilities associated with real estate held for sale | 14,542 | 16,791 |
TOTAL LIABILITIES | 2,706,806 | 2,514,821 |
6.25% series A cumulative redeemable preferred units of the operating partnership | 10,177 | 10,177 |
Partners’ capital: | ||
Common units, 145,730,290 and 145,450,095 issued and outstanding at September 30, 2016 and December 31, 2015, respectively. | 3,377,768 | 3,466,412 |
Non-controlling interest—members in Consolidated Entities | 268,604 | 262,625 |
TOTAL CAPITAL | 3,646,372 | 3,729,037 |
TOTAL LIABILITIES AND EQUITY | 6,363,355 | 6,254,035 |
Non-controlling interest—members in consolidated entities | ||
Partners’ capital: | ||
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership | 268,604 | 262,625 |
Non-controlling interest—units in the operating partnership | ||
Partners’ capital: | ||
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership | 840,223 | 1,800,578 |
TOTAL EQUITY | $ 840,223 | $ 1,800,578 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Common Stock: | ||
Common Stock, par value per share (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 490,000,000 | 490,000,000 |
Common Stock, shares outstanding | 118,746,571 | 89,153,780 |
6.25% series A cumulative redeemable preferred units of the Operating Partnership | ||
Series A Cumulative Redeemable Preferred units of the Operating Partnership | ||
Temporary Equity, dividend rate percentage | 6.25% | 6.25% |
Hudson Pacific Partners L.P. | 6.25% series A cumulative redeemable preferred units of the Operating Partnership | ||
Series A Cumulative Redeemable Preferred units of the Operating Partnership | ||
Temporary Equity, dividend rate percentage | 6.25% | 6.25% |
Hudson Pacific Partners L.P. | Common Units | ||
Common Stock: | ||
Common Stock, shares outstanding | 145,730,290 | 145,450,095 |
Common Units, shares issued | 145,730,290 | 145,450,095 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | ||||
TOTAL REVENUES | $ 164,583,000 | $ 151,556,000 | $ 472,441,000 | $ 366,199,000 |
OPERATING EXPENSES | ||||
General and administrative | 12,955,000 | 9,378,000 | 38,474,000 | 28,951,000 |
Depreciation and amortization | 67,414,000 | 80,195,000 | 201,890,000 | 170,945,000 |
TOTAL OPERATING EXPENSES | 140,843,000 | 147,391,000 | 409,879,000 | 332,614,000 |
INCOME FROM OPERATIONS | 23,740,000 | 4,165,000 | 62,562,000 | 33,585,000 |
OTHER EXPENSE (INCOME) | ||||
Interest expense | 19,910,000 | 14,461,000 | 54,775,000 | 34,067,000 |
Interest income | (130,000) | (17,000) | (216,000) | (118,000) |
Unrealized (gain) loss on ineffective portion of derivative instruments | (879,000) | 0 | 1,630,000 | 0 |
Acquisition-related expenses (expense reimbursements) | 315,000 | (83,000) | 376,000 | 43,442,000 |
Other (income) expense | (693,000) | 3,000 | (716,000) | 2,000 |
TOTAL OTHER EXPENSES | 18,523,000 | 14,364,000 | 55,849,000 | 77,393,000 |
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE | 5,217,000 | (10,199,000) | 6,713,000 | (43,808,000) |
Gains on sale of real estate | 0 | 8,371,000 | 8,515,000 | 30,471,000 |
NET INCOME (LOSS) | 5,217,000 | (1,828,000) | 15,228,000 | (13,337,000) |
Net income attributable to preferred stock and units | (159,000) | (3,195,000) | (477,000) | (9,585,000) |
Net income attributable to participating securities | (196,000) | (79,000) | (589,000) | (229,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (2,525,000) | (1,273,000) | (6,866,000) | (4,668,000) |
Net (income) loss attributable to common units in the operating partnership | (490,000) | 2,470,000 | (2,357,000) | 17,872,000 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 1,847,000 | $ (3,905,000) | $ 4,939,000 | $ (9,947,000) |
Net income (loss) attributable to common stockholders' per share - basic (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.12) |
Net income (loss) attributable to common stockholders' per share - diluted (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.12) |
Weighted average shares of common stock outstanding—basic (in shares) | 115,083,622 | 88,984,236 | 99,862,583 | 84,894,863 |
Weighted average shares of common stock outstanding - diluted (in shares) | 116,262,622 | 88,984,236 | 100,979,583 | 84,894,863 |
Dividends declared per common stock (in dollars per share) | $ 0.2 | $ 0.125 | $ 0.6 | $ 0.375 |
Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
TOTAL REVENUES | $ 164,583,000 | $ 151,556,000 | $ 472,441,000 | $ 366,199,000 |
OPERATING EXPENSES | ||||
General and administrative | 12,955,000 | 9,378,000 | 38,474,000 | 28,951,000 |
Depreciation and amortization | 67,414,000 | 80,195,000 | 201,890,000 | 170,945,000 |
TOTAL OPERATING EXPENSES | 140,843,000 | 147,391,000 | 409,879,000 | 332,614,000 |
INCOME FROM OPERATIONS | 23,740,000 | 4,165,000 | 62,562,000 | 33,585,000 |
OTHER EXPENSE (INCOME) | ||||
Interest expense | 19,910,000 | 14,461,000 | 54,775,000 | 34,067,000 |
Interest income | (130,000) | (17,000) | (216,000) | (118,000) |
Unrealized (gain) loss on ineffective portion of derivative instruments | (879,000) | 0 | 1,630,000 | 0 |
Acquisition-related expenses (expense reimbursements) | 315,000 | (83,000) | 376,000 | 43,442,000 |
Other (income) expense | (693,000) | 3,000 | (716,000) | 2,000 |
TOTAL OTHER EXPENSES | 18,523,000 | 14,364,000 | 55,849,000 | 77,393,000 |
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE | 5,217,000 | (10,199,000) | 6,713,000 | (43,808,000) |
Gains on sale of real estate | 0 | 8,371,000 | 8,515,000 | 30,471,000 |
NET INCOME (LOSS) | 5,217,000 | (1,828,000) | 15,228,000 | (13,337,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (2,525,000) | (1,273,000) | (6,866,000) | (4,668,000) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 2,692,000 | $ (3,101,000) | $ 8,362,000 | $ (18,005,000) |
Dividends declared per common stock (in dollars per share) | $ 0.2 | $ 0.125 | $ 0.6 | $ 0.375 |
Preferred Series A and B distributions | $ (159,000) | $ (3,195,000) | $ (477,000) | $ (9,585,000) |
Net income attributable to restricted shares | (196,000) | (79,000) | (589,000) | (229,000) |
Net (loss) income available to common unitholders | $ 2,337,000 | $ (6,375,000) | $ 7,296,000 | $ (27,819,000) |
Net income (loss) attributable to common unitholders per unit—basic (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.23) |
Net income (loss) attributable to common unitholders per unit—diluted (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.23) |
Weighted average shares of common units outstanding—basic (in shares) | 145,614,312 | 145,280,551 | 145,550,685 | 123,441,945 |
Weighted average shares of common units outstanding—diluted (in shares) | 146,793,312 | 145,280,551 | 146,667,685 | 123,441,945 |
Office | ||||
REVENUES | ||||
Rental | $ 123,919,000 | $ 114,693,000 | $ 358,193,000 | $ 276,321,000 |
Tenant recoveries | 22,657,000 | 20,036,000 | 64,493,000 | 43,890,000 |
Parking and other | 5,521,000 | 6,601,000 | 16,103,000 | 17,612,000 |
TOTAL REVENUES | 152,097,000 | 141,330,000 | 438,789,000 | 337,823,000 |
OPERATING EXPENSES | ||||
Operating expenses | 53,975,000 | 51,538,000 | 150,769,000 | 115,364,000 |
Office | Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
Rental | 123,919,000 | 114,693,000 | 358,193,000 | 276,321,000 |
Tenant recoveries | 22,657,000 | 20,036,000 | 64,493,000 | 43,890,000 |
Parking and other | 5,521,000 | 6,601,000 | 16,103,000 | 17,612,000 |
TOTAL REVENUES | 152,097,000 | 141,330,000 | 438,789,000 | 337,823,000 |
OPERATING EXPENSES | ||||
Operating expenses | 53,975,000 | 51,538,000 | 150,769,000 | 115,364,000 |
Media & Entertainment | ||||
REVENUES | ||||
Rental | 7,102,000 | 6,041,000 | 19,987,000 | 16,902,000 |
Tenant recoveries | 243,000 | 212,000 | 655,000 | 705,000 |
Parking and other | 136,000 | 113,000 | 226,000 | 244,000 |
Other property-related revenue | 5,005,000 | 3,860,000 | 12,784,000 | 10,525,000 |
TOTAL REVENUES | 12,486,000 | 10,226,000 | 33,652,000 | 28,376,000 |
OPERATING EXPENSES | ||||
Operating expenses | 6,499,000 | 6,280,000 | 18,746,000 | 17,354,000 |
Media & Entertainment | Hudson Pacific Partners L.P. | ||||
REVENUES | ||||
Rental | 7,102,000 | 6,041,000 | 19,987,000 | 16,902,000 |
Tenant recoveries | 243,000 | 212,000 | 655,000 | 705,000 |
Parking and other | 136,000 | 113,000 | 226,000 | 244,000 |
Other property-related revenue | 5,005,000 | 3,860,000 | 12,784,000 | 10,525,000 |
TOTAL REVENUES | 12,486,000 | 10,226,000 | 33,652,000 | 28,376,000 |
OPERATING EXPENSES | ||||
Operating expenses | $ 6,499,000 | $ 6,280,000 | $ 18,746,000 | $ 17,354,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net income (loss) | $ 5,217 | $ (1,828) | $ 15,228 | $ (13,337) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Other comprehensive income (loss) cash flow hedge adjustment | 3,087 | (15,325) | (20,818) | (6,300) |
COMPREHENSIVE INCOME (LOSS) | 8,304 | (17,153) | (5,590) | (19,637) |
Comprehensive income attributable to preferred stock | (159) | (3,195) | (477) | (9,585) |
Comprehensive income attributable to participating securities | (196) | (79) | (589) | (229) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (2,525) | (1,273) | (6,866) | (4,668) |
Comprehensive (income) loss attributable to units in the operating partnership | (1,137) | 8,408 | 5,903 | 20,084 |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HUDSON PACIFIC PROPERTIES, INC. COMMON STOCKHOLDERS | 4,287 | (13,292) | (7,619) | (14,035) |
Hudson Pacific Partners L.P. | ||||
Net income (loss) | 5,217 | (1,828) | 15,228 | (13,337) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Other comprehensive income (loss) cash flow hedge adjustment | 3,087 | (15,325) | (20,818) | (6,300) |
COMPREHENSIVE INCOME (LOSS) | 8,304 | (17,153) | (5,590) | (19,637) |
Comprehensive income attributable to Series A and B preferred units | (159) | (3,195) | (477) | (9,585) |
Comprehensive income attributable to participating securities | (196) | (79) | (589) | (229) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (2,525) | (1,273) | (6,866) | (4,668) |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO HUDSON PACIFIC PROPERTIES, INC. COMMON STOCKHOLDERS | $ 5,424 | $ (21,700) | $ (13,522) | $ (34,119) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Preferred Units | Common Stock/Units | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive (Loss) Income | Non- controlling Interests — Units in the Operating Partnership | Non-controlling Interests — Members in Consolidated Entities | Non- controlling Interests — Series A Cumulative Redeemable Preferred Units | Hudson Pacific Partners L.P. | Hudson Pacific Partners L.P.Total Partners’ Capital | Hudson Pacific Partners L.P.Preferred Units | Hudson Pacific Partners L.P.Common Stock/Units | Hudson Pacific Partners L.P.Non-controlling Interests — Members in Consolidated Entities | Hudson Pacific Partners L.P.Non- controlling Interests — Series A Cumulative Redeemable Preferred Units |
Beginning Balance at Dec. 31, 2014 | $ 1,275,015 | $ 145,000 | $ 668 | $ 1,070,833 | $ (34,884) | $ (2,443) | $ 52,851 | $ 42,990 | $ 10,177 | ||||||
Partners' capital, beginning balance at Dec. 31, 2014 | $ 1,275,015 | $ 1,232,025 | $ 145,000 | $ 1,087,025 | $ 42,990 | $ 10,177 | |||||||||
Beginning balance (shares) at Dec. 31, 2014 | 66,797,816 | 69,180,379 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Cash flow hedge adjustment | (6,300) | (6,300) | |||||||||||||
Beginning Balance at Dec. 31, 2014 | 1,275,015 | 145,000 | $ 668 | 1,070,833 | (34,884) | (2,443) | 52,851 | 42,990 | 10,177 | ||||||
Partners' capital, beginning balance at Dec. 31, 2014 | 1,275,015 | 1,232,025 | 145,000 | $ 1,087,025 | 42,990 | 10,177 | |||||||||
Beginning balance (shares) at Dec. 31, 2014 | 66,797,816 | 69,180,379 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Contributions | 217,795 | 217,795 | 217,795 | 217,795 | |||||||||||
Distributions | (2,013) | (2,013) | (2,013) | (2,013) | |||||||||||
Proceeds from sale of common stock, net of underwriters’ discount | 385,589 | $ 127 | 385,462 | 385,589 | 385,589 | $ 385,589 | |||||||||
Proceeds from sale of common stock, net of underwriters' discount (in shares) | 12,650,000 | 12,650,000 | |||||||||||||
Equity offering transaction costs | (4,969) | (4,969) | (4,969) | (4,969) | $ (4,969) | ||||||||||
Redemption of Series B Preferred Stock | (145,000) | (145,000) | (145,000) | (145,000) | (145,000) | ||||||||||
Issuance of common units for acquisition properties | 1,814,936 | 1,814,936 | |||||||||||||
Issuance of unrestricted stock or units | 285,445 | $ 87 | 285,358 | 2,100,381 | 2,100,381 | $ 2,100,381 | |||||||||
Issuance of unrestricted stock or units (in shares or units) | 8,820,482 | 63,668,962 | |||||||||||||
Issuance of restricted stock or units (in shares or units) | 36,223 | 36,223 | |||||||||||||
Shares withheld to satisfy minimum tax withholding | (5,128) | (5,128) | (5,128) | (5,128) | $ (5,128) | ||||||||||
Shares withheld to satisfy minimum tax withholding (in shares) | (85,469) | (85,469) | |||||||||||||
Declared dividend | (87,344) | (11,469) | (50,244) | (25,631) | (636) | (87,344) | (87,344) | (11,469) | $ (75,875) | (636) | |||||
Amortization of stock-based compensation | 8,832 | 8,832 | 8,832 | 8,832 | 8,832 | ||||||||||
Net income (loss) | (16,718) | 11,469 | (10,071) | (21,969) | 3,853 | 636 | (16,718) | (20,571) | 11,469 | (32,040) | 3,853 | 636 | |||
Cash flow hedge adjustment | 2,597 | 1,362 | 1,235 | 2,597 | 2,597 | 2,597 | |||||||||
Exchange of Non-controlling Interests — Common units in the operating partnership for common stock | $ 9 | 20,835 | (20,844) | ||||||||||||
Exchange of Non-controlling Interests - Common units in the operating partnership for common stock (shares) | (934,728) | ||||||||||||||
Ending Balance at Dec. 31, 2015 | $ 3,729,037 | 0 | $ 891 | 1,710,979 | (44,955) | (1,081) | 1,800,578 | 262,625 | 10,177 | ||||||
Partners' capital, ending balance at Dec. 31, 2015 | 3,729,037 | 3,466,412 | 0 | $ 3,466,412 | 262,625 | 10,177 | |||||||||
Ending balance (shares) at Dec. 31, 2015 | 89,153,780 | 89,153,780 | 145,450,095 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Contributions | $ 103 | 103 | 103 | 103 | |||||||||||
Distributions | (990) | (990) | (990) | (990) | |||||||||||
Proceeds from sale of common stock, net of underwriters’ discount | 880,514 | $ 295 | 880,219 | 880,514 | 880,514 | $ 880,514 | |||||||||
Proceeds from sale of common stock, net of underwriters' discount (in shares) | 29,477,596 | 29,477,596 | |||||||||||||
Issuance of unrestricted stock or units | 2 | $ 2 | 2 | 2 | $ 2 | ||||||||||
Issuance of unrestricted stock or units (in shares or units) | 186,752 | 186,752 | |||||||||||||
Shares withheld to satisfy minimum tax withholding | (1,776) | $ (1) | (1,775) | (1,776) | (1,776) | $ (1,776) | |||||||||
Shares withheld to satisfy minimum tax withholding (in shares) | (71,557) | (71,557) | |||||||||||||
Declared dividend | (88,469) | (62,553) | (25,916) | (477) | (88,469) | (88,469) | $ (88,469) | (477) | |||||||
Amortization of stock-based compensation | 10,231 | 9,463 | 768 | 10,231 | 10,231 | 10,231 | |||||||||
Net income (loss) | 14,751 | 5,528 | 2,357 | 6,866 | 477 | 14,751 | 7,885 | 7,885 | 6,866 | 477 | |||||
Cash flow hedge adjustment | (20,818) | (12,558) | (8,260) | (20,818) | (20,818) | (20,818) | |||||||||
Exchange of Non-controlling Interests — Common units in the operating partnership for common stock | (876,213) | 53,091 | (929,304) | (876,213) | (876,213) | $ (876,213) | |||||||||
Exchange of Non-controlling Interests - Common units in the operating partnership for common stock (shares) | (29,312,596) | ||||||||||||||
Ending Balance at Sep. 30, 2016 | $ 3,646,372 | $ 0 | $ 1,187 | $ 2,589,424 | $ (39,427) | $ (13,639) | $ 840,223 | $ 268,604 | $ 10,177 | ||||||
Partners' capital, ending balance at Sep. 30, 2016 | $ 3,646,372 | $ 3,377,768 | $ 0 | $ 3,377,768 | $ 268,604 | $ 10,177 | |||||||||
Ending balance (shares) at Sep. 30, 2016 | 118,746,571 | 118,746,571 | 145,730,290 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 15,228,000 | $ (13,337,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 201,890,000 | 170,945,000 |
Amortization of deferred financing costs and loan premium, net | 3,278,000 | 2,925,000 |
Amortization of stock-based compensation | 9,931,000 | 6,186,000 |
Straight-line rents | (19,398,000) | (24,037,000) |
Straight-line rent expenses | 886,000 | 0 |
Amortization of above- and below-market leases, net | (13,804,000) | (15,761,000) |
Amortization of above- and below-market ground lease, net | 1,604,000 | 1,092,000 |
Amortization of lease incentive costs | 1,017,000 | 427,000 |
Bad debt (recovery) expense | (740,000) | 435,000 |
Amortization of discount and net origination fees on purchased and originated loans | (208,000) | (312,000) |
Unrealized loss on ineffective portion of derivative instruments | 1,630,000 | 0 |
Gains from sale of real estate | (8,515,000) | (30,471,000) |
Change in operating assets and liabilities: | ||
Restricted cash | (4,093,000) | (1,523,000) |
Accounts receivable | 12,521,000 | (1,396,000) |
Deferred leasing costs and lease intangibles | (34,610,000) | (21,974,000) |
Prepaid expenses and other assets | (5,008,000) | (14,705,000) |
Accounts payable and accrued liabilities | 32,786,000 | 35,811,000 |
Security deposits | 14,102,000 | 15,256,000 |
Prepaid rent | (11,738,000) | 11,584,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 196,759,000 | 121,145,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment property | (183,286,000) | (114,711,000) |
Property acquisitions | (307,919,000) | (1,804,596,000) |
Contributions to unconsolidated entity | (28,393,000) | 0 |
Proceeds from repayment of notes receivable | 28,892,000 | 0 |
Proceeds from sale of real estate | 283,855,000 | 177,488,000 |
Deposits for property acquisitions | (13,130,000) | 0 |
NET CASH USED FOR INVESTING ACTIVITIES | (219,981,000) | (1,741,819,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 957,000,000 | 1,428,616,000 |
Payments of notes payable | (808,006,000) | (299,479,000) |
Proceeds from issuance of common stock, net | 880,514,000 | 380,803,000 |
Payments for redemption of common units in the operating partnership | (876,213,000) | 0 |
Dividends paid to common stock and unitholders | (88,469,000) | (46,737,000) |
Dividends paid to preferred stock and unitholders | (477,000) | (9,585,000) |
Contributions from non-controlling member in consolidated real estate entities | 103,000 | 217,795,000 |
Distributions to non-controlling member in consolidated real estate entities | (990,000) | (1,746,000) |
Payments to satisfy minimum tax withholding | (1,776,000) | (1,833,000) |
Payments of loan costs | (2,661,000) | (18,245,000) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 59,025,000 | 1,649,589,000 |
Net increase in cash and cash equivalents | 35,803,000 | 28,915,000 |
Cash and cash equivalents—beginning of period | 53,551,000 | 17,753,000 |
Cash and cash equivalents—end of period | 89,354,000 | 46,668,000 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 53,474,000 | 33,828,000 |
NON-CASH INVESTING ACTIVITIES: | ||
Accounts payable and accrued liabilities for investment in property | (10,227,000) | (14,825,000) |
Hudson Pacific Partners L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | 15,228,000 | (13,337,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 201,890,000 | 170,945,000 |
Amortization of deferred financing costs and loan premium, net | 3,278,000 | 2,925,000 |
Amortization of stock-based compensation | 9,931,000 | 6,186,000 |
Straight-line rents | (19,398,000) | (24,037,000) |
Straight-line rent expenses | 886,000 | 0 |
Amortization of above- and below-market leases, net | (13,804,000) | (15,761,000) |
Amortization of above- and below-market ground lease, net | 1,604,000 | 1,092,000 |
Amortization of lease incentive costs | 1,017,000 | 427,000 |
Bad debt (recovery) expense | (740,000) | 435,000 |
Amortization of discount and net origination fees on purchased and originated loans | (208,000) | (312,000) |
Unrealized loss on ineffective portion of derivative instruments | 1,630,000 | 0 |
Gains from sale of real estate | (8,515,000) | (30,471,000) |
Change in operating assets and liabilities: | ||
Restricted cash | (4,093,000) | (1,523,000) |
Accounts receivable | 12,521,000 | (1,396,000) |
Deferred leasing costs and lease intangibles | (34,610,000) | (21,974,000) |
Prepaid expenses and other assets | (5,008,000) | (14,705,000) |
Accounts payable and accrued liabilities | 32,786,000 | 35,811,000 |
Security deposits | 14,102,000 | 15,256,000 |
Prepaid rent | (11,738,000) | 11,584,000 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 196,759,000 | 121,145,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment property | (183,286,000) | (114,711,000) |
Property acquisitions | (307,919,000) | (1,804,596,000) |
Contributions to unconsolidated entity | (28,393,000) | 0 |
Proceeds from repayment of notes receivable | 28,892,000 | |
Proceeds from sale of real estate | 283,855,000 | 177,488,000 |
Deposits for property acquisitions | (13,130,000) | 0 |
NET CASH USED FOR INVESTING ACTIVITIES | (219,981,000) | (1,741,819,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from notes payable | 957,000,000 | 1,428,616,000 |
Payments of notes payable | (808,006,000) | (299,479,000) |
Proceeds from issuance of common stock, net | 880,514,000 | 380,803,000 |
Payments for redemption of common units in the operating partnership | (876,213,000) | 0 |
Dividends paid to common stock and unitholders | (88,469,000) | (46,737,000) |
Dividends paid to preferred stock and unitholders | (477,000) | (9,585,000) |
Contributions from non-controlling member in consolidated real estate entities | 103,000 | 217,795,000 |
Distributions to non-controlling member in consolidated real estate entities | (990,000) | (1,746,000) |
Payments to satisfy minimum tax withholding | (1,776,000) | (1,833,000) |
Payments of loan costs | (2,661,000) | (18,245,000) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 59,025,000 | 1,649,589,000 |
Net increase in cash and cash equivalents | 35,803,000 | 28,915,000 |
Cash and cash equivalents—beginning of period | 53,551,000 | 17,753,000 |
Cash and cash equivalents—end of period | 89,354,000 | 46,668,000 |
SUPPLEMENTAL CASH FLOWS INFORMATION: | ||
Cash paid for interest, net of amounts capitalized | 53,474,000 | 33,828,000 |
NON-CASH INVESTING ACTIVITIES: | ||
Accounts payable and accrued liabilities for investment in property | (10,227,000) | (14,825,000) |
Common units in the operating partnership in connection with property acquisition | 0 | 2,100,381,000 |
Common Units | ||
NON-CASH INVESTING ACTIVITIES: | ||
Noncash investing activities, property acquisition | 0 | 87,000 |
Additional Paid-in Capital | ||
NON-CASH INVESTING ACTIVITIES: | ||
Noncash investing activities, property acquisition | 0 | 285,358,000 |
Non-controlling interest—units in the operating partnership | ||
NON-CASH INVESTING ACTIVITIES: | ||
Noncash investing activities, property acquisition | $ 0 | $ 1,814,936,000 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 that did not have any meaningful operating activity until the consummation of its initial public offering and the related acquisition of its predecessor and certain other entities on June 29, 2010 (“IPO”). Since the completion of the IPO, the concurrent private placement, and the related formation transactions, Hudson Pacific Properties, Inc. has been a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and media and entertainment properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to the “Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to the “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. On April 1, 2015, the Company completed the acquisition of the EOP Northern California Portfolio (“EOP Acquisition”) from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Acquisition consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations, and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. As of September 30, 2016 , the Company owned a portfolio of 52 office properties and two media and entertainment properties. These properties are located throughout Northern and Southern California and the Pacific Northwest. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
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 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 ended December 31, 2016. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. for the year ended December 31, 2015 and the notes thereto. Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current year presentation. Specifically in the Consolidated Balance Sheets for the prior period, certain amounts have been reclassified to held for sale. These amounts are related to Patrick Henry Drive and One Bay Plaza, which were sold in 2016, and to 12655 Jefferson, which was determined to be held for sale as of September 30, 2016 . Principles of Consolidation The unaudited interim consolidated financial statements of Hudson Pacific Properties, Inc. include the accounts of Hudson Pacific Properties, Inc., the operating partnership and all wholly owned subsidiaries and variable interest entities (“VIEs”), of which Hudson Pacific Properties, Inc. is the primary beneficiary. The unaudited interim consolidated financial statements of the operating partnership include the accounts of the operating partnership, and all wholly owned subsidiaries and VIEs of which the operating partnership is the primary beneficiary. All intercompany balances and transactions have been eliminated in the consolidated financial statements. During the first quarter of 2016, the Company adopted ASU 2015-02, Consolidation (“Topic 810”): Amendments to the Consolidation Analysis , to amend the accounting guidance for consolidation. The standard simplifies the current guidance for consolidation and reduces the number of consolidation models through the elimination of the indefinite deferral of Statement 167. Additionally, the standard places more emphasis on risk of loss when determining a controlling financial interest. The Company consolidates all entities that the Company controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) 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 a result of the adoption, the Company concluded that two of the Company’s joint ventures and its operating partnership met the definition of a VIE and the Company is the primary beneficiary of these VIEs. Substantially all of the assets and liabilities of the Company are related to these VIEs. During the second quarter of 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. This joint venture met the definition of a VIE, however the Company is not the primary beneficiary and is not consolidating the joint venture. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Recently Issued Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of ASUs. The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed below are not expected to have a material impact on the Company’s consolidated financial statements, because either the ASU is not applicable or the impact is expected to be immaterial. On October 27, 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. This guidance outlines how a single decision maker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This guidance addresses eight cash flow classification issues to reduce diversity in practice, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2017, with early adoption permitted. The Company does not currently anticipate a material impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses . This guidance sets forth a new impairment model for financial instruments, the current expected credit loss (“CECL”) model, which is based on expected losses rather than incurred losses. Under the CECL model, an entity recognizes as an allowance its estimate of expected credit losses. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On May 10, 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This guidance clarifies certain narrow aspects of Topic 606, including assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. On April 14, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This guidance clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This guidance clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. Both updates affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , and defer the effective date of ASU 2014-09 by one year. These updates are effective for annual reporting periods (including interim periods) beginning after December 15, 2017 with early adoption permitted. The Company is currently assessing the impact of these updates on its consolidated financial statements and notes to the consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . This guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, classification of excess tax benefits on the statement of cash flows, and forfeitures. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance provides a new measurement alternative for equity investments that don’t have readily determinable fair values and don’t qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2018 with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. |
Investment in Real Estate
Investment in Real Estate | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate Acquisitions The Company’s acquisitions are accounted for using the acquisition method. The results of operations for each of these acquisitions are included in the Company’s Consolidated Statements of Operations from the date of acquisition. When we acquire properties that are considered business combinations, assets acquired and liabilities assumed are fair valued. Assets acquired and liabilities assumed include, but are not limited to, land, building and improvements, intangible assets related to above-and below-market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial assignment of the purchase price is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price assignment are made within the measurement period, which typically does not exceed one year, within the Consolidated Balance Sheet. We assess fair value based on level 2 and level 3 inputs within the fair value hierarchy, which includes estimated cash flow projections that utilize appropriate discount and/or capitalization rates and available market information. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. The fair value of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on our evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, we include estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, we consider leasing commissions, legal and other related costs. Acquisition-related expenses associated with business combinations are expensed in the period incurred. On July 1, 2016, the Company completed the acquisition of a 500,475 -square-foot Class A tower located at 11601 Wilshire Boulevard in West Los Angeles, California for cash consideration of $311.0 million (before credits, prorations, and closing costs). Owned by an affiliate of Blackstone, the building has served as the Company’s corporate office since its IPO. The acquisition of this property provides the Company with an opportunity to create value through enhanced operations, the lease-up of vacant space, and re-leasing of space at market rents above those currently in-place. Included in the Company’s consolidated financial statements for the three months ended September 30, 2016 were revenues and net loss from the 11601 Wilshire Boulevard property totaling $5.4 million and $1.8 million , respectively. The amounts were the same for the nine months ended September 30, 2016 . The Company is in the process of evaluating the terms of certain contracts associated with the property which affect the identification and valuation of assets acquired and liabilities assumed. The following table represents our aggregate preliminary purchase price accounting: 11601 Wilshire Boulevard Investment in real estate, net $ 300,430 Above-market leases (1) 167 Deferred leasing costs and in-place intangibles (2) 13,884 Below-market leases (3) (6,562 ) Net asset and liabilities assumed $ 307,919 ________________ (1) Represents weighted-average amortization period of 6.2 years. (2) Represents weighted-average amortization period of 5.6 years. (3) Represents weighted-average amortization period of 7.3 years. The table below shows the pro forma financial information for the nine months ended September 30, 2016 and 2015 as if the 11601 Wilshire Boulevard property had been acquired as of January 1, 2015 : Nine months ended September 30, 2016 2015 Total revenues $ 483,193 $ 382,327 Net income (loss) 11,608 (18,767 ) During 2015, the Company acquired 26 office properties totaling approximately 8.2 million square feet and two development parcels throughout Northern California. In addition, the Company also acquired 4th and Traction and 405 Mateo, both located in Los Angeles, California. Dispositions The following table summarizes the properties sold during the nine months ended September 30, 2016 and September 30, 2015 . These properties were non-strategic assets to the Company’s portfolio: Property Date of Disposition Number of Buildings Square Feet Sales Price (1) (in millions) Bayhill Office Center January 14, 2016 4 554,328 $ 215.0 Patrick Henry Drive April 7, 2016 1 70,520 19.0 One Bay Plaza June 1, 2016 1 195,739 53.4 Total dispositions for the nine months ended September 30, 2016 6 820,587 $ 287.4 First Financial March 6, 2015 1 223,679 $ 89.0 Bay Park Plaza September 29, 2015 1 260,183 90.0 Total dispositions for the nine months ended September 30, 2015 (2) 2 483,862 $ 179.0 _________________ (1) Represents gross sales price before certain credits, prorations and closing costs. (2) Excludes the disposition of 45% interest in 1455 Market Street office property on January 7, 2015. The dispositions of these properties resulted in a gain of $8.5 million for the nine months ended September 30, 2016 , and a gain of $8.4 million and $30.5 million for the three and nine months ended September 30, 2015 , respectively. There were no disposition during the three months ended September 30, 2016. The Company has not presented the operating results in net income (loss) from discontinued operations for these dispositions because they do not represent a strategic shift in the Company’s business. In addition, the Company reclassified the assets and liabilities related to these dispositions to assets and liabilities associated with real estate held for sale as of December 31, 2015. Held for Sale On April 25, 2016, the Company entered into an agreement to sell its 12655 Jefferson property for $80.0 million (before certain credits, prorations and closing costs). The Company determined that 12655 Jefferson met the criteria to be classified as held for sale and reclassified the balances related to such property within the Consolidated Balance Sheet as of September 30, 2016 and December 31, 2015. The following table summarizes the components of assets and liabilities associated with real estate held for sale as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 ASSETS Investment in real estate, net $ 58,915 $ 313,344 Straight-line rent receivables, net 292 2,016 Deferred leasing costs and lease intangible assets, net 2,774 14,415 Other 342 525 Assets associated with real estate held for sale $ 62,323 $ 330,300 LIABILITIES Accounts payable and accrued liabilities $ 3,634 $ 3,831 Other 10,908 12,960 Liabilities associated with real estate held for sale $ 14,542 $ 16,791 Cost Capitalization The Company recognized the following capitalized costs during the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Capitalized personnel costs $ 2,351 $ 2,227 $ 6,989 $ 5,063 Capitalized interest 2,960 1,279 8,414 4,561 Impairment of Long-Lived Assets No impairment indicators have been noted and the Company recorded no impairment charges for the three and nine months ended September 30, 2016 and 2015. |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 December 31, 2015 Above-market leases $ 23,197 $ 38,465 Accumulated amortization (12,004 ) (17,206 ) Above-market leases, net 11,193 21,259 Deferred leasing costs and in-place lease intangibles 361,416 347,531 Accumulated amortization (138,111 ) (111,128 ) Deferred leasing costs and in-place lease intangibles, net 223,305 236,403 Below-market ground leases 59,578 59,578 Accumulated amortization (4,394 ) (2,757 ) Below-market ground leases, net 55,184 56,821 Deferred leasing costs and lease intangible assets, net $ 289,682 $ 314,483 Below-market leases $ 134,445 $ 138,852 Accumulated amortization (58,381 ) (45,455 ) Below-market leases, net 76,064 93,397 Above-market ground leases 1,095 1,095 Accumulated amortization (78 ) (46 ) Above-market ground leases, net 1,017 1,049 Lease intangible liabilities, net $ 77,081 $ 94,446 The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Above-market lease (1) $ 2,809 $ 4,489 $ 10,223 $ 8,751 Below-market lease (1) 7,311 8,393 24,027 24,512 Deferred leasing costs and in-place lease intangibles (2) 20,742 29,312 65,408 65,058 Above-market ground lease (3) 11 18 33 35 Below-market ground lease (3) 545 533 1,637 1,127 __________________ (1) Amortization is recorded in office rental income in the Consolidated Statements of Operations. (2) Amortization is recorded in depreciation and amortization expense and office rental income in the Consolidated Statements of Operations. (3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable, net | Accounts Receivable, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Accounts receivable $ 11,466 $ 22,060 Allowance for doubtful accounts (1,845 ) (1,012 ) Accounts receivable, net $ 9,621 $ 21,048 Straight-line Rent Receivables, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Straight-line rent receivables $ 78,358 $ 60,378 Allowance for doubtful accounts (76 ) (970 ) Straight-line rent receivables, net $ 78,282 $ 59,408 Notes Receivable, net On August 19, 2014, the Company entered into a loan participation agreement for a loan with a maximum principal of $140.0 million . The Company’s share was 23.77% , or $ 33.3 million. The note receivable is secured by a real estate property, bears interest at 11.0% and was to mature on August 22, 2016. Interest is payable monthly with the principal due at maturity. The Company received a $0.4 million commitment fee as a result of this transaction. The balance as of December 31, 2015 , net of the accretion of commitment fee, was $28.7 million . The notes receivable under the loan participation agreement were fully repaid during the second quarter of 2016. |
Straight-line Rent Receivables,
Straight-line Rent Receivables, net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Straight-line Rent Receivables, net | Accounts Receivable, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Accounts receivable $ 11,466 $ 22,060 Allowance for doubtful accounts (1,845 ) (1,012 ) Accounts receivable, net $ 9,621 $ 21,048 Straight-line Rent Receivables, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Straight-line rent receivables $ 78,358 $ 60,378 Allowance for doubtful accounts (76 ) (970 ) Straight-line rent receivables, net $ 78,282 $ 59,408 Notes Receivable, net On August 19, 2014, the Company entered into a loan participation agreement for a loan with a maximum principal of $140.0 million . The Company’s share was 23.77% , or $ 33.3 million. The note receivable is secured by a real estate property, bears interest at 11.0% and was to mature on August 22, 2016. Interest is payable monthly with the principal due at maturity. The Company received a $0.4 million commitment fee as a result of this transaction. The balance as of December 31, 2015 , net of the accretion of commitment fee, was $28.7 million . The notes receivable under the loan participation agreement were fully repaid during the second quarter of 2016. |
Notes Receivable, net
Notes Receivable, net | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Notes Receivable, net | Accounts Receivable, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Accounts receivable $ 11,466 $ 22,060 Allowance for doubtful accounts (1,845 ) (1,012 ) Accounts receivable, net $ 9,621 $ 21,048 Straight-line Rent Receivables, net The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the annual report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L. P. for the year ended December 31, 2015. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Straight-line rent receivables $ 78,358 $ 60,378 Allowance for doubtful accounts (76 ) (970 ) Straight-line rent receivables, net $ 78,282 $ 59,408 Notes Receivable, net On August 19, 2014, the Company entered into a loan participation agreement for a loan with a maximum principal of $140.0 million . The Company’s share was 23.77% , or $ 33.3 million. The note receivable is secured by a real estate property, bears interest at 11.0% and was to mature on August 22, 2016. Interest is payable monthly with the principal due at maturity. The Company received a $0.4 million commitment fee as a result of this transaction. The balance as of December 31, 2015 , net of the accretion of commitment fee, was $28.7 million . The notes receivable under the loan participation agreement were fully repaid during the second quarter of 2016. |
Investment in Unconsolidated En
Investment in Unconsolidated Entity | 9 Months Ended |
Sep. 30, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Entity | Investment in Unconsolidated Entity Investment in unconsolidated real estate in which the Company has the ability to exercise significant influence (but not control) is accounted for under the equity method of investment. 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. On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The Company holds a 21.4% interest in the joint venture. The assets of the joint venture are comprised of the notes receivable, which represents the maximum exposure for loss for the Company. The joint venture meets the criteria of a VIE and the Company accounts for this investment under the equity method of accounting since the Company is not the primary beneficiary. Under the equity method of accounting, the Company’s net equity investment is reflected within investment in unconsolidated entity on the Consolidated Balance Sheets, and the Company’s share of net income or loss from the joint venture is included within other (income) expense on the Consolidated Statements of Operations. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company’s goodwill balance as of September 30, 2016 and December 31, 2015 was $8.8 million . The Company does not amortize this asset but instead analyzes it on an annual basis for impairment. No impairment indicators have been noted during the three and nine months ended September 30, 2016 and 2015. |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | Notes Payable The following table summarizes the balances of the Company’s indebtedness as of: September 30, 2016 December 31, 2015 Notes payable $ 2,427,440 $ 2,278,445 Less: unamortized loan premium and deferred financing costs, net (1) (19,497 ) (17,729 ) Notes payable, net $ 2,407,943 $ 2,260,716 ________________ (1) Deferred financing costs exclude debt issuance costs, net, related to establishing the Company’s unsecured revolving credit facility and undrawn term loans. The amounts included in prepaid expenses and other assets, net was $1.7 million and $4.1 million as of September 30, 2016 and December 31, 2015 , respectively. The following table sets forth information as of September 30, 2016 and December 31, 2015 with respect to the Company’s outstanding indebtedness, excluding net deferred financing costs related to unsecured revolving credit facility and undrawn term loans. September 30, 2016 December 31, 2015 Principal Amount Deferred Financing Costs, net Principal Amount Unamortized Loan Premium and Deferred Financing Costs, net Interest Rate (1) Contractual Maturity Date Unsecured Loans Unsecured Revolving Credit Facility (2) $ 120,000 $ — $ 230,000 $ — LIBOR+ 1.15% to 1.85% 4/1/2019 (3) 5-Year Term Loan due April 2020 (2)(4) 450,000 (3,783 ) 550,000 (5,571 ) LIBOR+ 1.30% to 2.20% 4/1/2020 5-Year Term Loan due November 2020 (2) 175,000 (793 ) — — LIBOR +1.30% to 2.20% 11/17/2020 7-Year Term Loan due April 2022 (2)(5) 350,000 (2,372 ) 350,000 (2,656 ) LIBOR+ 1.60% to 2.55% 4/1/2022 7-Year Term Loan due November 2022 (2)(6) 125,000 (970 ) — — LIBOR + 1.60% to 2.55% 11/17/2022 Series A Notes 110,000 (970 ) 110,000 (1,011 ) 4.34% 1/2/2023 Series E Notes 50,000 (311 ) — — 3.66% 9/15/2023 Series B Notes 259,000 (2,335 ) 259,000 (2,378 ) 4.69% 12/16/2025 Series D Notes 150,000 (922 ) — — 3.98% 7/6/2026 Series C Notes 56,000 (552 ) 56,000 (509 ) 4.79% 12/16/2027 Total Unsecured Loans 1,845,000 (13,008 ) 1,555,000 (12,125 ) Mortgage Loans Mortgage Loan secured by Rincon Center (7) 100,886 (236 ) 102,309 (355 ) 5.13% 5/1/2018 Mortgage Loan secured by Sunset Gower/Sunset Bronson (8) 5,001 (1,712 ) 115,001 (2,232 ) LIBOR+2.25% 3/4/2019 (3) Mortgage Loan secured by Met Park North (9) 64,500 (426 ) 64,500 (509 ) LIBOR+1.55% 8/1/2020 Mortgage Loan secured by 10950 Washington (7) 28,053 (371 ) 28,407 (421 ) 5.32% 3/11/2022 Mortgage Loan secured by Pinnacle I (10)(11) 129,000 (618 ) 129,000 (694 ) 3.95% 11/7/2022 Mortgage Loan secured by Element L.A. 168,000 (2,387 ) 168,000 (2,584 ) 4.59% 11/6/2025 Mortgage Loan secured by Pinnacle II (11) 87,000 (739 ) 86,228 1,310 (12) 4.30% 6/11/2026 Mortgage Loan secured by 901 Market — — 30,000 (119 ) N/A N/A Total Mortgage Loans (13) 582,440 (6,489 ) 723,445 (5,604 ) Total $ 2,427,440 $ (19,497 ) $ 2,278,445 $ (17,729 ) _________________ (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 September 30, 2016 , which may be different than the interest rates as of December 31, 2015 for corresponding indebtedness. (2) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of September 30, 2016 , no such election had been made. (3) The maturity date may be extended once for an additional one -year term. (4) Effective May 1, 2015, $300.0 million of the term loan has been effectively fixed at 2.66% to 3.56% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate with respect to $300.0 million of the term loan increased to a range of 2.75% to 3.65% per annum. See Note 11—Derivative Instruments for details. (5) Effective May 1, 2015, the outstanding balance of the term loan has been effectively fixed at 3.21% to 4.16% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate increased to a range of 3.36% to 4.31% per annum. See Note 11—Derivative Instruments for details. (6) Effective June 1, 2016, the outstanding balance of the term loan has been effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 11—Derivative Instruments for details. (7) Monthly debt service includes annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (8) Through February 11, 2016, interest on $92.0 million of the outstanding loan balance was effectively capped at 5.97% and 4.25% on $50.0 million and $42.0 million , respectively, of the loan through the use of two interest rate caps. These interest rate caps were not renewed after maturity. (9) This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 11—Derivative Instruments for details. (10) This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (11) The Company owns approximately 65% of the ownership interests in the joint venture that owns the Pinnacle I and II properties. (12) Represents unamortized premium amount of the non-cash mark-to-market adjustment. (13) Total mortgage loans do not include the balance related to a loan entered on October 7, 2016 for $101.0 million with a fixed interest rate of 3.38% per annum. This loan was entered into in conjunction with the acquisition of the Hill7 office property through a joint venture with Canadian Pension Plan Investment Board. The Company owns 55% of the ownership interest in the joint venture. See Note 20—Subsequent Events for details. Current Year Activity On May 3, 2016, the Company drew on the $175.0 million 5 -Year Term Loan due November 2020 and $125.0 million 7 -Year Term Loan due November 2022, both of which were entered into on November 17, 2015. Amounts drawn were used to fully pay down $30.0 million of the 901 Market mortgage loan that was set to mature on October 31, 2016, to partially pay down $110.0 million of the Sunset Gower/Sunset Bronson mortgage loans and $100.0 million of the 5 -Year Term Loan due April 2020. On June 7, 2016, Pinnacle II Hudson MC Partners, the Company’s joint venture, entered into a $87.0 million ten -year mortgage loan secured by its Pinnacle II office property. This new loan has a maturity date of June 11, 2026 and bears a fixed rate of 4.30% per annum with interest only payable every month during the term of the loan and principal payment at maturity. Proceeds were used to fully pay down the previous loan secured by the Company’s Pinnacle II office property that was scheduled to mature on September 6, 2016. On July 6, 2016, the Company entered into a private placement of debt for $150.0 million of 3.98% senior guaranteed notes due July 6, 2026. The $150.0 million was drawn on July 6, 2016. Proceeds were used to pay down the unsecured revolving credit facility. The Company also secured an additional $50.0 million of funds from a private placement of 3.66% senior guaranteed notes due September 15, 2023, which was drawn on September 15, 2016 . On October 7, 2016, the Company entered into a $101.0 million mortgage loan with a fixed interest rate of 3.38% per annum, interest only. This loan agreement was entered into in conjunction with the acquisition of Hill7 office property through a joint venture with Canadian Pension Plan Investment Board. See Note 20—Subsequent Events for details. Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, such as in the case of the project financing for the Sunset Gower and Sunset Bronson properties, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. Loan agreements include events of default that the Company believes are usual for loan and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans. The minimum future principal payments due on the Company’s secured and unsecured notes payable at September 30, 2016 were as follows (before the impact of extension options, if applicable): Annual Principal Payments Remaining 2016 $ 601 2017 2,714 2018 101,157 2019 127,886 2020 692,493 Thereafter 1,502,589 Total $ 2,427,440 Senior Unsecured Revolving Credit Facility and Term Loan Facilities New Term Loan Agreement On November 17, 2015, the operating partnership entered into a new term loan credit agreement (the “New Term Loan Agreement”) with a group of lenders for an unsecured $175.0 million five -year delayed draw term loan with a maturity date of November 2020 (“5-Year Term Loan due November 2020”) and an unsecured $125.0 million seven -year delayed draw term loan with a maturity date of November 2022 (“7-Year Term Loan due November 2022”). These term loans were fully drawn on May 3, 2016. A&R Credit Agreement On April 1, 2015, the operating partnership entered into the Second Amended and Restated Credit Agreement dated as of March 31, 2015 (the “Credit Facility”), which extended the maturity dates, increased the availability of the unsecured revolving credit facility to $400.0 million, increased the availability of 5 -Year Term Loan due April 2020 to $550.0 million, and added a $350.0 million 7 -Year Term Loan due April 2022. On November 17, 2015, the operating partnership amended and restated the Credit Facility (“Amended and Restated Credit Facility”) to align certain terms therein with the less restrictive terms of the New Term Loan Agreement. Borrowings under the Credit Facility were used towards the EOP Acquisition in 2015. The Amended and Restated Credit Facility is available for other purposes, including for payment of pre-development and development costs incurred in connection with properties owned by the Company, to finance capital expenditures and the repayment of indebtedness of the Company, to provide for general working capital needs and for general corporate purposes of the Company, and to pay fees and expenses incurred in connection with the Amended and Restated Credit Facility. Guaranteed Senior Notes On November 16, 2015, the operating partnership entered into a Note Purchase Agreement (the “Note Purchase Agreement”) with various purchasers, which provides for the private placement of $425.0 million of senior guaranteed notes by the operating partnership, designated as three notes with various interest rates and maturity dates (“Notes”). The Notes were issued on December 16, 2015 and upon issuance, the Notes pay interest semi-annually on the 16th day of June and December in each year until their respective maturities. Additional senior guaranteed notes were issued in 2016; for further detail, refer to the current activity section above. Debt Covenants The operating partnership’s ability to borrow under the New Term Loan Agreement, the Amended and Restated Credit Facility, and the Note Purchase Agreement remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements, including, when considering the most restrictive terms, maintaining a leverage ratio (maximum of 0.60 :1.00), unencumbered leverage ratio (maximum of 0.60 :1.00), fixed charge coverage ratio (minimum of 1.50 :1.00), secured indebtedness leverage ratio (maximum of 0.45 :1.00), and unsecured interest coverage ratio (minimum 2.00 :1.00). 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 operating partnership was in compliance with its financial covenants at September 30, 2016 . Repayment Guaranties Sunset Gower and Sunset Bronson Loan In connection with the loan secured by the Sunset Gower and Sunset Bronson properties, the Company has guaranteed in favor of and promised to pay to the lender 19.5% of the principal payable under the loan in the event the borrower, a wholly-owned entity of the operating partnership, does not do so. As of September 30, 2016 , the outstanding balance was $5.0 million , which results in a maximum guarantee amount for the principal under this loan of $1.0 million . Furthermore, the Company agreed to guarantee the completion of the construction improvements, including tenant improvements, as defined in the agreement, in the event of any default of the borrower. If the borrower fails to complete the remaining required work, the guarantor agrees to perform timely all of the completion obligations, as defined in the agreement. As of the date of this filing, there has been no event of default associated with this loan. Other Loans Although the rest of the operating partnership’s loans are secured and non-recourse to the operating partnership, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments The Company entered into interest rate contracts in order to hedge interest rate risk. As of September 30, 2016 , the Company had six interest rate swaps with aggregate notional amounts of $839.5 million. As of December 31, 2015 , the Company had two interest rate caps and five interest rate swaps with aggregate notional amounts of $92.0 million and $714.5 million, respectively. These derivatives were designated as effective cash flow hedges for accounting purposes. The Company’s derivative instruments are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. 5-Year Term Loan due April 2020 and 7-year Term Loan due April 2022 On April 1, 2015, the Company entered into a derivative contract with respect to $300.0 million of the 5 -Year Term Loan due April 2020 which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.36% through the loan’s maturity. Therefore the interest rate is effectively fixed at 2.66% to 3.56% . The unhedged portion bears interest at a rate equal to one-month LIBOR plus 1.30% to 2.20% , depending on the Company’s leverage ratio. In July 2016, the Company amended this interest rate swap to add a 0.00 % floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate with respect to $300.0 million of the term loan increased to a range of 2.75% to 3.65% per annum based on the Company’s operating partnership’s leverage ratio. On April 1, 2015, the Company also entered into a derivative contract with respect to the $350.0 million 7 -year Term Loan due April 2022, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.61% through the loan’s maturity. Therefore the interest rate is effectively fixed at 3.21% to 4.16% . In July 2016, the Company amended this interest rate swap to add a 0.00 % floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate with respect to $350.0 million 7 -year Term Loan due April 2022 increased to a range of 3.36% to 4.31% per annum based on the Company’s operating partnership’s leverage ratio. During the three and nine months ended September 30, 2016 , the Company recognized an unrealized gain of $0.9 million and an unrealized loss of $1.6 million , respectively, on the Consolidated Statement of Operations, related to the ineffective portion of these derivative contracts. There was no recognized unrealized loss or gain during the three and nine months ended September 30, 2015 . In July 2016, the Company amended the derivative contracts to add a 0.00 % floor to one-month LIBOR as described above, minimizing the ineffective portion of the original derivatives related to these loans. 7-Year Term Loan due November 2022 On May 3, 2016, the Company entered into a derivative contract with respect to $125.0 million of the 7 -Year Term Loan due November 2022. This derivative became effective on June 1, 2016 and swapped one-month LIBOR, which includes a 0.00% floor, to a fixed rate of 1.43% through the loan’s maturity. Sunset Gower and Sunset Bronson Mortgage On February 11, 2011, the Company closed a five -year term loan totaling $92.0 million with Wells Fargo Bank, N.A., secured by the Sunset Gower and Sunset Bronson properties. The loan initially bore interest at a rate equal to one -month LIBOR plus 3.50% . On March 16, 2011, the Company purchased an interest rate cap in order to cap one -month LIBOR at 3.715% on $50.0 million of the loan through February 11, 2016. On January 11, 2012, the Company purchased an interest rate cap in order to cap one -month LIBOR at 2.00% with respect to $42.0 million of the loan. Effective August 22, 2013, the terms of this loan were amended to, among other changes, increase the outstanding balance from $92.0 million to $97.0 million , reduce the interest to a rate equal to one -month LIBOR plus 2.25% , and extend the maturity date from February 11, 2016 to February 11, 2018. The derivatives described above were not changed in connection with this loan amendment. Therefore, the interest rate is effectively fixed at 5.97% on $50.0 million of the loan and 4.25% with respect to $42.0 million of the loan. Effective March 4, 2015, the terms of this loan were amended and restated to introduce the ability to draw up to an additional $160.0 million for budgeted construction costs associated with the ICON development and to extend the maturity date from February 11, 2018 to March 4, 2019. The derivatives described above were not changed in connection with this loan amendment. These derivatives matured on February 11, 2016. Met Park North On July 31, 2013, the Company closed a seven -year loan totaling $64.5 million with Union Bank, N.A., secured by the Met Park North property. The loan bears interest at a rate equal to one-month LIBOR plus 1.55% . The full loan is subject to an interest rate contract that swapped one -month LIBOR to a fixed rate of 2.16% through the loan’s maturity on August 1, 2020. Overall The fair market value of derivatives are presented on a gross basis in the Consolidated Balance Sheets. There were no derivative assets as of September 30, 2016 . The derivative assets as of December 31, 2015 were $2.1 million . The derivative liabilities as of September 30, 2016 and December 31, 2015 were $22.4 million and $2.0 million , respectively. The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of September 30, 2016 , the Company expects $7.7 million of unrealized loss included in accumulated other comprehensive loss will be reclassified to interest expense in the next 12 months. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
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 that 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 one of its subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. 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 September 30, 2016 , the Company has not established a liability for uncertain tax positions. The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2011. Generally, the Company has assessed its tax positions for all open years, which include 2011 to 2015, and concluded that there are no material uncertainties to be recognized. |
Future Minimum Base Rents and L
Future Minimum Base Rents and Lease Payments Future Minimum Rents | 9 Months Ended |
Sep. 30, 2016 | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents | Future Minimum Base Rents and Lease Payments Future Minimum Rents The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2016 to 2033 . Future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties at September 30, 2016 are presented below for the next five years and thereafter are as follows: Non-cancellable Subject to early termination options Total (1) Remaining 2016 $ 112,066 $ — $ 112,066 2017 455,911 4,825 460,736 2018 409,086 24,596 433,682 2019 358,035 26,550 384,585 2020 292,595 7,615 300,210 Thereafter 1,029,548 77,876 1,107,424 Total $ 2,657,241 $ 141,462 $ 2,798,703 _________________ (1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less. Future Minimum Lease Payments The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations: Property Expiration Date Notes Sunset Gower 3/31/2060 Every 7 years rent adjusts to 7.5% of Fair Market Value (“FMV”) of the land. Del Amo Office 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. 9300 Wilshire Blvd. 8/14/2032 Additional rent is the sum by which 6% of gross rental from the prior calendar year exceeds the Minimum Rent. 222 Kearny Street 6/14/2054 Minimum annual rent is the greater of $975 thousand or 20% of the first $8.0 million of the tenant’s “Operating Income” during any “Lease Year,” as such terms are defined in the ground lease. Page Mill Center 11/30/2041 Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of adjusted gross income (“AGI”), less minimum annual rent. Clocktower Square Bldg 9/26/2056 Minimum annual rent (adjusted every 10 years) plus 25% of AGI less minimum annual rent. Palo Alto Square 11/30/2045 Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent. Lockheed Building 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. Foothill Research Ctr 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%. 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of FMV of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income x 24.125%. This lease has been prepaid through October 31, 2017. Metro Center Tower 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013). Techmart Commerce Center 5/31/2053 Subject to a 10% increase every 5 years. 11601 Wilshire Boulevard 10/31/2064 Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in CPI. The Company recognized the following contingent rental expense and minimum rental expense for our ground leases and corporate office lease: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Contingent rental expense $ 1,970 $ 1,041 $ 6,417 $ 2,098 Minimum rental expense 3,070 3,234 10,064 6,913 The following table provides information regarding the Company’s future minimum lease payments for its ground lease at September 30, 2016 (before the impact of extension options, if applicable): Ground Leases (1)(2)(3) Remaining 2016 $ 3,649 2017 13,002 2018 14,668 2019 14,718 2020 14,718 Thereafter 449,402 Total $ 510,157 _________________ (1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . (2) In situations where ground lease obligation adjustments are based on CPI adjustment, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . (3) In situations where ground lease obligation adjustments are based on the percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
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 requires inputs that are both significant to the fair value measurement and unobservable. The Company measures fair value of financial instruments using level 2 inputs categorized within the fair value hierarchy. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following: September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets $ — $ — $ — $ — $ — $ 2,061 $ — $ 2,061 Derivative liabilities — 22,413 — 22,413 — 2,010 — 2,010 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 because of the short-term nature of these instruments. Fair values for notes payable and notes receivable 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 assets and liabilities at: September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Notes payable, net (1) $ 2,427,440 $ 2,451,539 $ 2,279,755 $ 2,284,429 Notes receivable, net — — 28,684 28,684 _________________ (1) Amounts represent total notes payable including unamortized loan premium and excludes net deferred financing fees. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company calculates basic earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method. Unvested time-based RSUs and unvested OPP awards that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per share computations for net income available to common stockholders: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Numerator: Net income (loss) $ 5,217 $ (1,828 ) $ 15,228 $ (13,337 ) Preferred dividends (159 ) (3,195 ) (477 ) (9,585 ) Income attributable to participating securities (196 ) (79 ) (589 ) (229 ) Income attributable to non-controlling interest in consolidated entities (2,525 ) (1,273 ) (6,866 ) (4,668 ) (Income) loss attributable to non-controlling units of the operating partnership (490 ) 2,470 (2,357 ) 17,872 Numerator for basic and diluted net income (loss) available to common stockholders $ 1,847 $ (3,905 ) $ 4,939 $ (9,947 ) Denominator: Basic weighted average common shares outstanding 115,083,622 88,984,236 99,862,583 84,894,863 Effect of dilutive instruments (1) 1,179,000 — 1,117,000 — Diluted weighted average common shares outstanding 116,262,622 88,984,236 100,979,583 84,894,863 Basic earnings per common share: $ 0.02 $ (0.04 ) $ 0.05 $ (0.12 ) Diluted earnings per common share: $ 0.02 $ (0.04 ) $ 0.05 $ (0.12 ) ________________ (1) The Company includes unvested awards as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has various stock compensation arrangements, which are more fully described in Part IV, Item 15(a) “Financial Statement and Schedules—Note 9 to the Consolidated Financial Statements—Equity” in its 2015 Annual Report on Form 10-K. Under the 2010 Incentive Award Plan, as amended (“2010 Plan”), the board of directors of Hudson Pacific Properties, Inc., or its compensation committee, has the ability to grant, among other things, restricted stock, restricted stock units and performance units. The board of directors of Hudson Pacific Properties, Inc. awards restricted shares to non-employee board members, other than directors designated by The Blackstone Group L.P. or its affiliates, on an annual basis as part of such board members’ annual compensation and to newly elected non-employee board members, other than directors designated by The Blackstone Group L.P. or its affiliates, in accordance with the Company’s Non-Employee Director Compensation Program. The share-based awards are generally issued in the second quarter, and the awards vest in equal annual installments over the applicable service vesting period, which is three years . In addition, the board of directors of Hudson Pacific Properties, Inc., or its compensation committee, awards time-based restricted shares to certain employees on an annual basis as part of the employees’ annual compensation. The share-based awards are generally issued in the fourth quarter, and the awards vest in equal annual installments over the applicable service vesting period, which is three years . Additionally, these awards are subject to a two -year hold upon vesting if the employee is a named executive officer at the time of grant. Starting in January 2012, during the first quarter, the compensation committee of the board of directors of Hudson Pacific Properties, Inc. annually adopts an Outperformance Plan (“OPP”) under the 2010 Plan. Each OPP is a multi-year outperformance program covering certain senior executives, and authorizes grants of incentive awards linked to absolute and relative total shareholder return (“TSR”) over the applicable three -year performance period. During March 2016, the Compensation Committee adopted the 2016 OPP Plan under the Company’s 2010 Plan. The 2016 OPP is substantially similar to the previous OPPs except that (i) the performance period will run from January 1, 2016 through December 31, 2018, (ii) the maximum bonus pool under the 2016 OPP is $17.5 million , (iii) the 2016 OPP provides for a target bonus pool equal to $3.7 million and (iv) the bonus pool will be equal to 3% of the amount by which TSR during the performance period exceeds the applicable goal. For certain participants, the 2016 OPP awards will be settled in performance units of the operating partnership (rather than in common stock of Hudson Pacific Properties, Inc.). In December 2015, the board of directors of Hudson Pacific Properties, Inc. awarded special one-time retention grants to certain employees, which include time-vesting restricted stock and performance-based RSUs. These awards vest over four years (subject to continued employment and, with respect to the RSUs, the achievement of performance goals). Additionally, these awards are subject to a two -year hold upon vesting. The following table presents the classification and amount recognized for stock compensation related to the Company’s OPP plans and restricted stock awards: Three Months Ended September 30, Nine Months Ended September 30, Consolidated Financial Statement Classification 2016 2015 2016 2015 Expensed stock compensation $ 3,288 $ 2,034 $ 9,931 $ 6,186 general and administrative expenses Capitalized stock compensation 112 103 300 314 deferred leasing costs and lease intangibles assets, net and tenant improvements Total stock compensation $ 3,400 $ 2,137 $ 10,231 $ 6,500 additional paid-in capital |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | Equity The tables below present the effect of the Company’s derivative financial instruments on accumulated other comprehensive loss (“OCI”): Hudson Pacific Properties, Inc. Stockholder ’ s Equity Non-controlling interests Total Equity Balance at January 1, 2016 $ 1,081 $ (1,017 ) $ 64 Unrealized loss recognized in OCI due to change in fair value of derivative 16,542 10,880 27,422 Loss reclassified from OCI into income (as interest expense) (3,984 ) (2,620 ) (6,604 ) Net change in OCI 12,558 8,260 20,818 Balance at September 30, 2016 $ 13,639 $ 7,243 $ 20,882 Hudson Pacific Properties, Inc. Stockholder ’ s Equity Non-controlling interests Total Equity Balance at January 1, 2015 $ 2,443 $ 218 $ 2,661 Unrealized loss recognized in OCI due to change in fair value of derivative 10,594 5,733 16,327 Loss reclassified from OCI into income (as interest expense) (6,506 ) (3,521 ) (10,027 ) Net change in OCI 4,088 2,212 6,300 Balance at September 30, 2015 $ 6,531 $ 2,430 $ 8,961 Non-controlling Interests Common Units and Performance Units in the Operating Partnership There were 26,983,719 and 56,296,315 common units outstanding held by investors, executive officers and directors as of September 30, 2016 and December 31, 2015 , respectively. Common units and shares of common stock of Hudson Pacific Properties, Inc. 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 redeem any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of common stock of Hudson Pacific Properties, Inc. in exchange for common units on a one -for-one basis. In May 2016, common unitholders required the operating partnership to redeem 10,117,223 common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemption using the proceeds from a registered underwritten public offering of common stock. In July 2016, common unitholders required the operating partnership to redeem an additional 19,195,373 common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemption using the proceeds from a registered underwritten public offering of common stock. Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one unit 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. The operating partnership meets the criteria of a VIE and the Company is the primary beneficiary of the operating partnership. Non-controlling Interest—Members in Consolidated Entities The Company has an interest in a joint venture with Media Center Partners, LLC (the “Pinnacle JV”). The Pinnacle JV owns the Pinnacle, a two -building (Pinnacle I and Pinnacle II), 625,640 square-foot office property located in Burbank, California. The Company owns a 65.0% interest in the Pinnacle JV. The Company is the administrator for this joint venture. This joint venture meets the criteria of a VIE and the Company is the primary beneficiary of the Pinnacle JV. On January 7, 2015, the Company entered into a joint venture with Canada Pension Plan Investment Board (“CPPIB”), through which CPPIB purchased a 45.0% interest in the 1455 Market Street office property located in San Francisco, California. Subsequently, the Company owned a 55% interest in the 1455 Market JV. The Company is the general partner of this joint venture. This joint venture meets the criteria of a VIE and the Company is the primary beneficiary of the 1455 Market JV. 6.25% series A cumulative redeemable preferred units of the operating partnership 6.25% series A cumulative redeemable preferred units of the operating partnership are 407,066 series A preferred units of partnership interest in the operating partnership, or series A preferred units, that are not owned by the Company. These series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible, at the option of the holder, into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock, after June 29, 2013. 8.375% series B cumulative redeemable preferred stock 5,800,000 shares of 8.375% series B cumulative redeemable preferred stock of Hudson Pacific Properties, Inc., with a liquidation preference of $25.00 per share, $0.01 par value per share, were outstanding during the three months ended March 31, 2015. Dividends on the series B preferred stock were cumulative from the date of original issue and payable quarterly on or about the last calendar day of each March, June, September and December, at the rate of 8.375% per annum of its $25.00 per share liquidation preference. On December 10, 2015, the Company redeemed its series B preferred stock in whole for cash at a redemption price of $ 25.00 per share, plus accrued and unpaid dividends to, but not including, the date of redemption. July 2016 Common Stock Offering On July 21, 2016, the Company completed a public offering of 19,195,373 shares of common stock of Hudson Pacific Properties, Inc. The proceeds from the offering were used to redeem common units in the operating partnership. May 2016 Common Stock Offering On May 10, 2016, the Company completed a public offering of 10,117,223 shares of common stock of Hudson Pacific Properties, Inc. The proceeds from the offering were used to redeem common units in the operating partnership. April 2015 Common Stock Secondary Offering On April 10, 2015, certain funds affiliated with Farallon Capital Management completed a public offering of 6,037,500 shares of common stock of Hudson Pacific Properties, Inc. The Company did not receive any proceeds from the offering. April 2015 Common Stock Issuance On April 1, 2015, in connection with the EOP Acquisition, Hudson Pacific Properties, Inc. issued 8,626,311 shares of common stock as part of the consideration paid. January 2015 Common Stock Offering On January 20, 2015, Hudson Pacific Properties, Inc. completed the public offering of 11,000,000 shares of common stock and the exercise of the underwriters’ over-allotment option to purchase an additional 1,650,000 shares of common stock at the public offering price of $31.75 per share. Total proceeds from the public offering, after underwriters’ discount, were approximately $385.6 million (before transaction costs). At-the-market program The Company’s at-the-market (“ATM”) program permits sales of up to $125.0 million of stock. During the nine months ended September 30, 2016 the Company sold 165,000 shares of common stock at prices ranging from $33.54 to $33.95 per share under the ATM program. During 2015, the Company did not utilize the ATM program. A cumulative total of $20.1 million has been sold through September 30, 2016 . Share repurchase program On January 20, 2016, the board of directors of Hudson Pacific Properties, Inc. authorized a share repurchase program to buy up to $100.0 million of the outstanding common stock of Hudson Pacific Properties, Inc. No share repurchases were made during the three months ended September 30, 2016 . Dividends During the third quarter for 2016 , the Company declared dividends on common stock and non-controlling common partnership interests of $0.200 per share and unit. The operating partnership also declared distributions on series A preferred partnership interests of $0.3906 per unit. The third quarter dividends were declared on September 10, 2016 to holders of record on September 20, 2016. Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes because of the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain executive officers, effective January 1, 2016, that provide for various severance and change in control benefits and other terms and conditions of employment. Lease and Subsequent Purchase of Corporate Headquarters from Blackstone On July 26, 2006, the Company’s predecessor, Hudson Capital, LLC, entered into a lease agreement and subsequent amendments with landlord Trizec Holdings Cal, LLC (an affiliate of Blackstone) for the Company’s corporate headquarters at 11601 Wilshire Boulevard. The Company amended the lease to increase its occupancy to 40,120 square feet of the property’s space as a tenant commencing on September 1, 2015. On December 16, 2015, the Company entered into an amendment of that lease to expand the space to approximately 42,371 square feet of the property’s space and to extend the term by an additional three years, to a total of ten years, through August 31, 2025. On July 1, 2016, the Company purchased the 11601 Wilshire Boulevard office building from funds managed by Blackstone for $311.0 million (before credits, prorations and closing costs). JMG Capital Lease at 11601 Wilshire Boulevard JMG Capital Management LLC leases approximately 6,638 square feet at 11601 Wilshire Boulevard pursuant to an eight -year lease at an aggregate rate of approximately $279 thousand annualized rent per year. Jonathan M. Glaser, a member of the Company’s board of directors, is the founder and managing member of JMG Capital Management LLC. JMG Capital Management LLC was a tenant of the property at the time it was purchased by the Company. Agreement Related to EOP Acquisition On April 1, 2015, the Company completed the EOP Acquisition from certain affiliates of Blackstone, which consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. The Stockholders Agreement On April 1, 2015, in connection with the closing of the EOP Acquisition as described above, the Company entered into the Stockholders Agreement (the “Stockholders Agreement”) by and among the Company, the operating partnership, Blackstone Real Estate Advisors L.P. (“BREA”) and Blackstone. The Stockholders Agreement sets forth various arrangements and restrictions with respect to the governance of the Company and certain rights of Blackstone with respect to the shares of common stock of Hudson Pacific Properties, Inc. and common units of the operating partnership received by Blackstone in connection with the EOP Acquisition (the “Equity Consideration”). Pursuant to the terms of the Stockholders Agreement, in April 2015 the board of directors of Hudson Pacific Properties, Inc. (the “Board”) was expanded from eight to eleven directors, and three director nominees designated by Blackstone to the Board were elected. On January 13, 2016, one of Blackstone’s nominees resigned from the Board, and Blackstone indicated that it would not designate an individual to replace him. Subsequently, the Board voted to decrease its size to ten directors. Subject to certain exceptions, the Board will continue to include Blackstone’ designees in its slate of nominees, and will continue to recommend such nominees, and will otherwise use its reasonable best efforts to solicit the vote of the stockholders of Hudson Pacific Properties, Inc. to elect to the Board the slate of nominees which includes those designated by Blackstone. Blackstone will have the right to designate three nominees for so long as it continues to beneficially own, in the aggregate, greater than 50% of the Equity Consideration. If Blackstone’ beneficial ownership of the Equity Consideration decreases, then the number of director nominees that Blackstone will have the right to designate will be reduced (i) to two , if Blackstone beneficially owns greater than or equal to 30% but less than or equal to 50% of the Equity Consideration and (ii) to one , if Blackstone beneficially owns greater than or equal to 15% but less than 30% of the Equity Consideration. The Board nomination rights of Blackstone will terminate at such time as Blackstone beneficially owns less than 15% of the Equity Consideration or upon written notice of waiver or termination of such rights by Blackstone. So long as Blackstone retains the right to designate at least one nominee to the Board, Hudson Pacific Properties, Inc. will not be permitted to increase the total number of directors comprising the Board to more than 12 persons without the prior written consent of Blackstone. For so long as Blackstone has the right to designate at least two director nominees, subject to the satisfaction of applicable NYSE independence requirements, Blackstone will also be entitled to appoint one such nominee then serving on the Board to serve on each committee of the Board (other than certain specified committees). The Stockholders Agreement also includes standstill provisions, which require that, until such time as Blackstone beneficially owns shares of common stock representing less than 10% of the total number of issued and outstanding shares of common stock on a fully-diluted basis, Blackstone and BREA are restricted from, among other things, acquiring additional equity or debt securities (other than non-recourse debt and certain other debt) of the Company without the Company’s prior written consent. In addition, pursuant to the Stockholders Agreement, until April 1, 2017, the Company is required to obtain the prior written consent of Blackstone prior to the issuance of common equity securities by it or any of its subsidiaries other than up to an aggregate of 16,843,028 shares of common stock (and certain other exceptions). Further, until such time as Blackstone beneficially owns, in the aggregate, less than 15% of the Equity Consideration, Blackstone will cause all common stock held by it to be voted by proxy (i) in favor of all persons nominated to serve as directors by the Board (or the Nominating and Corporate Governance Committee thereof) in any slate of nominees which includes Blackstone’ nominees and (ii) otherwise in accordance with the recommendation of the Board (to the extent the recommendation is not inconsistent with the rights of Blackstone under the Stockholders Agreement) with respect to any other action, proposal or other matter to be voted upon by the stockholders of Hudson Pacific Properties, Inc., other than in connection with (A) any proposed transaction relating to a change of control of Hudson Pacific Properties, Inc., (B) any amendments to the charter or bylaws of Hudson Pacific Properties, Inc., (C) any other transaction that Hudson Pacific Properties, Inc. submits to a vote of its stockholders pursuant to Section 312.03 of the NYSE Listed Company Manual or (D) any other transaction that Hudson Pacific Properties, Inc. submits to a vote of its stockholders for approval. As required by the Stockholders Agreement, the Company has agreed that Blackstone and certain of its affiliates may engage in investments, strategic relationships or other business relationships with entities engaged in other business, including those that compete with the Company, and will have no obligation to present any particular investment or business opportunity to the Company, even if the opportunity is of a character that, if presented to the Company, could be undertaken by the Company. As required by the Stockholders Agreement, to the maximum extent permitted under Maryland law, the Company has renounced any interest or expectancy in, or in being offered an opportunity to participate in, any such investment, opportunity or activity presented to or developed by Blackstone, its nominees for election as directors and certain of its affiliates, other than any opportunity expressly offered to a director nominated at the direction of Blackstone in his or her capacity as a director of Hudson Pacific Properties, Inc. Further, without the prior written consent of Blackstone, Hudson Pacific Properties, Inc. may not amend certain provisions of its bylaws relating to the ability of its directors and officers to engage in other business or to adopt qualification for directors other than those in effect as of the date of the Stockholders Agreement or as are generally applicable to all directors, respectively. The Stockholders Agreement also includes certain provisions that, together, are intended to enhance the liquidity of common units to be held by Blackstone. Redemption Rights of Blackstone Under the terms of the Stockholders Agreement, the Company (in its capacity as the general partner of the operating partnership) has waived the 14 -month holding period set forth in the Fourth Amended and Restated Limited Partnership Agreement before Blackstone may require the operating partnership to redeem the common units and grants certain additional rights to Blackstone in connection with such redemptions. Among other things, the Company generally must give Blackstone notice before 9:30 a.m. Eastern time on the business day after the business day on which Blackstone gives the Company notice of redemption of any common units of the Company’s election, in its sole and absolute discretion, to either (a) cause the operating partnership to redeem all of the tendered common units in exchange for a cash amount per common units equal to the value of one share of common stock on the date that Blackstone provided its notice of redemption, calculated in accordance with and subject to adjustment as provided in the Fourth Amended and Restated Limited Partnership Agreement and the Stockholders Agreement, or (b) subject to the restrictions on ownership and transfer of the Company’s stock set forth in its charter, acquire all of the tendered common units from Blackstone in exchange for shares of common stock, based on an exchange ratio of one share of common stock for each common unit, subject to adjustment as provided in the Fourth Amended and Restated Limited Partnership Agreement. If the Company fails to timely provide such notice, the Company will be deemed to have elected to cause the operating partnership to redeem all such tendered common units in exchange for shares of common stock. In May 2016, Blackstone redeemed 10,000,000 common units in the operating partnership in exchange for cash. On July 21, 2016, Blackstone redeemed an additional 19,000,000 common units. The Company may also elect to cause the operating partnership to redeem all common units tendered by Blackstone with the proceeds of a public or private offering of common stock under certain circumstances as discussed more fully below. Restrictions on Transfer of Common Units by Blackstone Under the terms of the Stockholders Agreement, the Company (in its capacity as the general partner of the operating partnership) has waived the 14 -month holding period set forth in the Fourth Amended and Restated Limited Partnership Agreement before Blackstone may transfer any common units, and has agreed to admit any permitted transferee of Blackstone as a substituted limited partner of the operating partnership upon the satisfaction of certain conditions described in the Fourth Amended and Restated Limited Partnership Agreement and the Stockholders Agreement. Nevertheless, the Covered Securities are subject to the transfer restrictions described above. Ownership Limit Waiver In connection with the issuance of the Equity Consideration, the Board granted to Blackstone and certain of its affiliates a limited exception to the restrictions on ownership and transfer of common stock set forth in the charter of Hudson Pacific Properties, Inc. (the “Charter”) that allows Blackstone and certain of its affiliates to own, directly or indirectly, in the aggregate, up to 17,707,056 shares of common stock of Hudson Pacific Properties, Inc. (the “Excepted Holder Limit”). This exception is conditioned upon the continued accuracy of various representations and covenants set forth in Blackstone’s waiver request delivered on April 1, 2015, confirming, among other things, that neither Blackstone nor certain of its affiliates may own, directly or indirectly, (i) more than 9.9% of the interests in a tenant of the Company (other than a tenant of the 1455 Market Street office property) or (ii) more than 5.45% of the interests in a tenant of the 1455 Market Street office property, in each case subject to certain exceptions that may reduce such ownership percentage, but not below 2% and representations intended to confirm that Blackstone’s and certain of its affiliates’ ownership of common stock of Hudson Pacific Properties, Inc. will not cause Hudson Pacific Properties, Inc. to otherwise fail to qualify as a REIT. The exception for Blackstone and certain of its affiliates will apply until (i) Blackstone or any such affiliate violates any of the representations or covenants in Blackstone’s waiver request or (ii) (a) Blackstone or any such affiliate owns, directly or indirectly, more than the applicable ownership percentage (as described above) of the interests in any tenant(s) and (b) the maximum rental income expected to be produced by such tenant(s) exceeds (x) 0.5% of the Company’s gross income (in the case of tenants other than tenants of the 1455 Market Street office property) or (y) 0.5% of the 1455 Market Street Joint Venture’s gross income (in the case of tenants of the 1455 Market Street office property) for any taxable year (the “Rent Threshold”), at which time the number of shares of common stock that Blackstone and certain of its affiliates may directly or indirectly own will be reduced to the number of shares of common stock which would result in the amount of rent from such tenant(s) (that would be treated as related party rents under certain tax rules) representing no more than the Rent Threshold. The Registration Rights Agreement On April 1, 2015, in connection with the closing of the EOP Acquisition, the Company entered into a Registration Rights Agreement, dated April 1, 2015 (the “Registration Rights Agreement”), by and among the Company and Blackstone. The Registration Rights Agreement provides for customary registration rights with respect to the Equity Consideration, including the following: • Shelf Registration . On October 27, 2015, the Company filed a prospectus covering Blackstone’s shares of common stock received as part of the Equity Consideration as well as shares issuable upon redemption of common units received as part of the Equity Consideration, which was replaced by a subsequent prospectus filed by the Company on July 21, 2016. The Company is required to use its reasonable best efforts to keep such resale shelf registration statement effective for as long as Blackstone continues to hold such shares of common stock. • Demand Registrations . Beginning November 1, 2015 (or earlier if transfer restrictions under the Stockholders Agreement are terminated earlier), Blackstone may cause the Company to register their shares if the foregoing resale shelf registration statement is not effective or if the Company is not eligible to file a shelf registration statement. • Qualified Offerings . Any registered offerings requested by Blackstone that are to an underwriter on a firm commitment basis for reoffering and resale to the public, in an offering that is a “bought deal” with one or more investment banks or in a block trade with a broker-dealer will be (subject to certain specified exceptions): (i) no more frequent than once in any 120 -day period, (ii) subject to underwriter lock-ups from prior offerings then in effect, and (iii) subject to a minimum offering size of $50.0 million. • Piggy-Back Rights. Beginning November 1, 2015 (or earlier if transfer restrictions under the Stockholders Agreement are terminated earlier), Blackstone is permitted to, among other things, participate in offerings for the Company’s account or the account of any other security holder of the Company (other than in certain specified cases). If underwriters advise that the success of a proposed offering would be significantly and adversely affected by the inclusion of all securities in an offering initiated by the Company for the Company’s own account, then the securities proposed to be included by Blackstone together with other stockholders exercising similar piggy-back rights are cut back first. Limited Partnership Agreement On April 1, 2015, in connection with the closing of the EOP Acquisition, the Company, as the general partner of the operating partnership, entered into the Third Amended and Restated Agreement of Limited Partnership of the operating partnership dated April 1, 2015 along with Blackstone and the other limited partners of the operating partnership. The principal changes to the Second Amended and Restated Agreement of Limited Partnership of the operating partnership, as amended and as in effect immediately prior to the closing of the EOP Acquisition, made by the Third Amended and Restated Limited Partnership Agreement were to add the provisions described below. The Third Amended and Restated Limited Partnership Agreement was subsequently amended and restated on December 17, 2015 by the Fourth Amended and Restated Limited Partnership Agreement of the operating partnership. The Stockholders Agreement prohibits the Company, without the prior written consent of Blackstone, from amending certain provisions of the Fourth Amended and Restated Limited Partnership Agreement in a manner adverse in any respect to Blackstone (in its capacity as limited partners of the operating partnership), or to add any new provision to the Fourth Amended and Restated Limited Partnership Agreement that would have a substantially identical effect or from taking any action that is intended to or otherwise would have a substantially identical effect. Restrictions on Mergers, Sales, Transfers and Other Significant Transactions of the Company Prior to the date on which Blackstone and any of its affiliates own less than 9.8% of the Equity Consideration, the Company may not consummate any of (a) a merger, consolidation or other combination of the Company’s or the operating partnership’s assets with another person, (b) a sale of all or substantially all of the assets of the operating partnership, (c) sale of all or substantially all of the Company’s assets not in the ordinary course of the operating partnership’s business or (d) a reclassification, recapitalization or change in the Company’s outstanding equity securities (other than in connection with a stock split, reverse stock split, stock dividend, change in par value, increase in authorized shares, designation or issuance of new classes of equity securities or any event that does not require the approval of the Company’s stockholders), in each case, which is submitted to the holders of the common stock of Hudson Pacific Properties, Inc. for approval, unless such transaction is also approved by the partners of the operating partnership holding common units on a “pass through” basis, which, in effect, affords the limited partners of the operating partnership that hold common units the right to vote on such transaction as though such limited partners held the number of shares of common stock into which their common units were then exchangeable and voted together with the holders of the outstanding common stock of Hudson Pacific Properties, Inc. with respect to such transaction. Stock Offering Funding of Redemption If Blackstone or any of its affiliates who become limited partners of the operating partnership (“Specified Limited Partners”) delivers a notice of redemption with respect to common units that, if exchanged for common stock, would result in a violation of the Excepted Holder Limit (as defined below) or otherwise violate the restrictions on ownership and transfer of the Company’s stock set forth in its charter and that have an aggregate value in excess of $50.0 million as calculated pursuant to the terms of the Fourth Amended and Restated Limited Partnership Agreement, then, if the Company is then eligible to register the offering of its securities on Form S-3 (or any successor form similar thereto), the Company may elect to cause the operating partnership to redeem such common units with the net proceeds from a public or private offering of the number of shares of common stock that would be deliverable in exchange for such common units but for the application of the Excepted Holder Limit and other restrictions on ownership and transfer of the Company’s stock. If the Company elects to fund the redemption of any common units with such an offering, it will allow all Specified Limited Partners the opportunity to include additional common units held by such Specified Limited Partners in such redemption. Blackstone Margin Loan HPP BREP V Holdco A LLC (“Borrower”), an affiliate of Blackstone, has entered into (i) a Margin Loan Agreement (the “Loan Agreement”) dated as of December 29, 2015 with the lenders party thereto (each, a “Lender” and, collectively, the “Lenders”) and the administrative agent party thereto and (ii) Pledge and Security Agreements dated as of December 31, 2015, in each case, between one of the Lenders, as secured party, and Borrower, as pledgor (the “Borrower Pledge Agreements”), and certain of Borrower’s affiliates (each, a “Holdco A Guarantor” and collectively, the “Holdco A Guarantors”) each entered into (i) with each Lender, a Pledge and Security Agreement dated as of December 31, 2015 (each, a “Holdco A Guarantor Pledge Agreement” and, collectively with the Borrower Pledge Agreements, the “Pledge Agreements”) and (ii) with the administrative agent and the Lenders, a Guarantee dated as of December 31, 2015 of the Borrower’s obligations under the Loan Agreement (each, a “Holdco A Guarantee” and collectively the “Holdco A Guarantees”). In addition, certain of Borrower’s other affiliates (each, a “Holdco B Guarantor” and collectively, the “Holdco B Guarantors” and, together with the Holdco A Guarantors, the “Guarantors”) each entered into, with the administrative agent and the Lenders, a Guarantee dated as of December 31, 2015 of the Borrower’s obligations under the Loan Agreement (each, a “Holdco B Guarantee” and, collectively with the Holdco A Guarantees, the Loan Agreement, the Pledge Agreements and substantially similar pledge and security agreements entered into since December 31, 2015, the “Loan Documents”). Each of the Borrower, the Holdco A Guarantors and the Holdco B Guarantors is affiliated with Blackstone. As of December 31, 2015, the Borrower has borrowed an aggregate of $350.0 million under the Loan Agreement. Subject to the satisfaction of certain conditions, the Borrower may borrow up to an additional $150.0 million on or after March 1, 2016. The scheduled maturity date of the loans under the Loan Agreement is December 31, 2017, which may be extended at the election of the Borrower until December 31, 2018. To secure borrowings under the Loan Agreement, the Borrower and the Guarantors have collectively pledged 8,276,945 shares of common stock and 24,801,618 common units in the operating partnership, as well as their respective rights under the Registration Rights Agreement. Upon the occurrence of certain events that are customary for this type of loan, the Lenders may exercise their rights to require the Borrower to pre-pay the loan proceeds, post additional collateral, or foreclose on, and dispose of, the pledged shares of common stock of Hudson Pacific Properties, Inc. and pledged common units in the operating partnership in accordance with the Loan Documents. The Company did not independently verify the foregoing disclosure regarding the margin loan. In addition, the Company is not a party to the Loan Documents and has no obligations thereunder, but has delivered an Issuer Agreement to each of the Lenders in which it has, among other things, agreed to certain obligations relating to the pledged shares of the common stock of Hudson Pacific Properties, Inc. and pledged common units in the operating partnership and, subject to applicable law and stock exchange rules, agreed not to take any actions that are intended to materially hinder or delay the exercise of any remedies with respect to the pledged shares of the common stock of Hudson Pacific Properties, Inc. and pledged common units in the operating partnership. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of September 30, 2016 , the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Concentrations As of September 30, 2016 , the majority of the Company’s properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. A significant portion of the Company’s rental revenue is derived from tenants in the media and entertainment and technology industries. As of September 30, 2016 , approximately 13.4% and 28.1% of rentable square feet were related to the media and entertainment and technology industries, respectively. As of September 30, 2016 , the Company’s 15 largest tenants represented approximately 22.4% of its rentable square feet and no single tenant accounted for more than 10% . Letters of Credit As of September 30, 2016 , the Company has outstanding letters of credit totaling approximately $2.6 million under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 7, 2016, the Company purchased, through a joint venture with Canadian Pension Plan Investment Board, the 285,680 -square-foot Hill7 office property located in Seattle, Washington for $179.8 million (before customary, prorations and closing costs). In conjunction with the acquisition, the joint venture closed a secured non-recourse loan in the amount of $ 101.0 million bearing an interest rate of 3.38% per annum, interest only. This loan has a 10 -year maturity with an option to extend an additional two years at a higher interest rate. The Company is currently in the process of determining the purchase price accounting. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) 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 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 ended December 31, 2016. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. for the year ended December 31, 2015 and the notes thereto. Certain amounts in the consolidated financial statements for prior periods have been reclassified to conform to the current year presentation. Specifically in the Consolidated Balance Sheets for the prior period, certain amounts have been reclassified to held for sale. These amounts are related to Patrick Henry Drive and One Bay Plaza, which were sold in 2016, and to 12655 Jefferson, which was determined to be held for sale as of September 30, 2016 . |
Principles of Consolidation | The unaudited interim consolidated financial statements of Hudson Pacific Properties, Inc. include the accounts of Hudson Pacific Properties, Inc., the operating partnership and all wholly owned subsidiaries and variable interest entities (“VIEs”), of which Hudson Pacific Properties, Inc. is the primary beneficiary. The unaudited interim consolidated financial statements of the operating partnership include the accounts of the operating partnership, and all wholly owned subsidiaries and VIEs of which the operating partnership is the primary beneficiary. All intercompany balances and transactions have been eliminated in the consolidated financial statements. During the first quarter of 2016, the Company adopted ASU 2015-02, Consolidation (“Topic 810”): Amendments to the Consolidation Analysis , to amend the accounting guidance for consolidation. The standard simplifies the current guidance for consolidation and reduces the number of consolidation models through the elimination of the indefinite deferral of Statement 167. Additionally, the standard places more emphasis on risk of loss when determining a controlling financial interest. The Company consolidates all entities that the Company controls through either majority ownership or voting rights. In addition, the Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) 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 a result of the adoption, the Company concluded that two of the Company’s joint ventures and its operating partnership met the definition of a VIE and the Company is the primary beneficiary of these VIEs. Substantially all of the assets and liabilities of the Company are related to these VIEs. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. |
Recently Issued Accounting Pronouncements | Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of ASUs. The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed below are not expected to have a material impact on the Company’s consolidated financial statements, because either the ASU is not applicable or the impact is expected to be immaterial. On October 27, 2016, the FASB issued ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control. This guidance outlines how a single decision maker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2016, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On August 26, 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments. This guidance addresses eight cash flow classification issues to reduce diversity in practice, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2017, with early adoption permitted. The Company does not currently anticipate a material impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On June 16, 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses . This guidance sets forth a new impairment model for financial instruments, the current expected credit loss (“CECL”) model, which is based on expected losses rather than incurred losses. Under the CECL model, an entity recognizes as an allowance its estimate of expected credit losses. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2019, with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On May 10, 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. This guidance clarifies certain narrow aspects of Topic 606, including assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. On April 14, 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This guidance clarifies two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance. On March 17, 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This guidance clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. Both updates affect the guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , and defer the effective date of ASU 2014-09 by one year. These updates are effective for annual reporting periods (including interim periods) beginning after December 15, 2017 with early adoption permitted. The Company is currently assessing the impact of these updates on its consolidated financial statements and notes to the consolidated financial statements. On March 30, 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting . This guidance simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, classification of excess tax benefits on the statement of cash flows, and forfeitures. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. On January 5, 2016, the FASB issued ASU 2016-01, Financial Instruments — Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance provides a new measurement alternative for equity investments that don’t have readily determinable fair values and don’t qualify for the net asset value practical expedient. Under this alternative, these investments can be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This update is effective for annual reporting periods (including interim periods) beginning after December 15, 2018 with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements. |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Real Estate [Abstract] | |
Schedule of Aggregate Preliminary Purchase Price Allocation | The following table represents our aggregate preliminary purchase price accounting: 11601 Wilshire Boulevard Investment in real estate, net $ 300,430 Above-market leases (1) 167 Deferred leasing costs and in-place intangibles (2) 13,884 Below-market leases (3) (6,562 ) Net asset and liabilities assumed $ 307,919 ________________ (1) Represents weighted-average amortization period of 6.2 years. (2) Represents weighted-average amortization period of 5.6 years. (3) Represents weighted-average amortization period of 7.3 years. |
Schedule of Pro Forma Information | The table below shows the pro forma financial information for the nine months ended September 30, 2016 and 2015 as if the 11601 Wilshire Boulevard property had been acquired as of January 1, 2015 : Nine months ended September 30, 2016 2015 Total revenues $ 483,193 $ 382,327 Net income (loss) 11,608 (18,767 ) |
Schedule of Properties Sold | The following table summarizes the properties sold during the nine months ended September 30, 2016 and September 30, 2015 . These properties were non-strategic assets to the Company’s portfolio: Property Date of Disposition Number of Buildings Square Feet Sales Price (1) (in millions) Bayhill Office Center January 14, 2016 4 554,328 $ 215.0 Patrick Henry Drive April 7, 2016 1 70,520 19.0 One Bay Plaza June 1, 2016 1 195,739 53.4 Total dispositions for the nine months ended September 30, 2016 6 820,587 $ 287.4 First Financial March 6, 2015 1 223,679 $ 89.0 Bay Park Plaza September 29, 2015 1 260,183 90.0 Total dispositions for the nine months ended September 30, 2015 (2) 2 483,862 $ 179.0 _________________ (1) Represents gross sales price before certain credits, prorations and closing costs. (2) Excludes the disposition of 45% interest in 1455 Market Street office property on January 7, 2015. |
Summary of Assets and Liabilities Associated with Real Estate Held-for-sale | The following table summarizes the components of assets and liabilities associated with real estate held for sale as of September 30, 2016 and December 31, 2015 : September 30, 2016 December 31, 2015 ASSETS Investment in real estate, net $ 58,915 $ 313,344 Straight-line rent receivables, net 292 2,016 Deferred leasing costs and lease intangible assets, net 2,774 14,415 Other 342 525 Assets associated with real estate held for sale $ 62,323 $ 330,300 LIABILITIES Accounts payable and accrued liabilities $ 3,634 $ 3,831 Other 10,908 12,960 Liabilities associated with real estate held for sale $ 14,542 $ 16,791 |
Schedule of Costs Capitalized | The Company recognized the following capitalized costs during the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Capitalized personnel costs $ 2,351 $ 2,227 $ 6,989 $ 5,063 Capitalized interest 2,960 1,279 8,414 4,561 |
Deferred Leasing Costs and Le30
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Leases [Abstract] | |
Schedule of Deferred Leasing Cost and Lease Intangibles | The following summarizes the Company’s deferred leasing costs and lease intangibles as of: September 30, 2016 December 31, 2015 Above-market leases $ 23,197 $ 38,465 Accumulated amortization (12,004 ) (17,206 ) Above-market leases, net 11,193 21,259 Deferred leasing costs and in-place lease intangibles 361,416 347,531 Accumulated amortization (138,111 ) (111,128 ) Deferred leasing costs and in-place lease intangibles, net 223,305 236,403 Below-market ground leases 59,578 59,578 Accumulated amortization (4,394 ) (2,757 ) Below-market ground leases, net 55,184 56,821 Deferred leasing costs and lease intangible assets, net $ 289,682 $ 314,483 Below-market leases $ 134,445 $ 138,852 Accumulated amortization (58,381 ) (45,455 ) Below-market leases, net 76,064 93,397 Above-market ground leases 1,095 1,095 Accumulated amortization (78 ) (46 ) Above-market ground leases, net 1,017 1,049 Lease intangible liabilities, net $ 77,081 $ 94,446 |
Schedule of Amortization During Period | The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Above-market lease (1) $ 2,809 $ 4,489 $ 10,223 $ 8,751 Below-market lease (1) 7,311 8,393 24,027 24,512 Deferred leasing costs and in-place lease intangibles (2) 20,742 29,312 65,408 65,058 Above-market ground lease (3) 11 18 33 35 Below-market ground lease (3) 545 533 1,637 1,127 __________________ (1) Amortization is recorded in office rental income in the Consolidated Statements of Operations. (2) Amortization is recorded in depreciation and amortization expense and office rental income in the Consolidated Statements of Operations. (3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net | The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Accounts receivable $ 11,466 $ 22,060 Allowance for doubtful accounts (1,845 ) (1,012 ) Accounts receivable, net $ 9,621 $ 21,048 The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Straight-line rent receivables $ 78,358 $ 60,378 Allowance for doubtful accounts (76 ) (970 ) Straight-line rent receivables, net $ 78,282 $ 59,408 |
Straight-line Rent Receivable32
Straight-line Rent Receivables, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of straight-line rent receivables, net | The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Accounts receivable $ 11,466 $ 22,060 Allowance for doubtful accounts (1,845 ) (1,012 ) Accounts receivable, net $ 9,621 $ 21,048 The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of: September 30, 2016 December 31, 2015 Straight-line rent receivables $ 78,358 $ 60,378 Allowance for doubtful accounts (76 ) (970 ) Straight-line rent receivables, net $ 78,282 $ 59,408 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table summarizes the balances of the Company’s indebtedness as of: September 30, 2016 December 31, 2015 Notes payable $ 2,427,440 $ 2,278,445 Less: unamortized loan premium and deferred financing costs, net (1) (19,497 ) (17,729 ) Notes payable, net $ 2,407,943 $ 2,260,716 ________________ (1) Deferred financing costs exclude debt issuance costs, net, related to establishing the Company’s unsecured revolving credit facility and undrawn term loans. The amounts included in prepaid expenses and other assets, net was $1.7 million and $4.1 million as of September 30, 2016 and December 31, 2015 , respectively. The following table sets forth information as of September 30, 2016 and December 31, 2015 with respect to the Company’s outstanding indebtedness, excluding net deferred financing costs related to unsecured revolving credit facility and undrawn term loans. September 30, 2016 December 31, 2015 Principal Amount Deferred Financing Costs, net Principal Amount Unamortized Loan Premium and Deferred Financing Costs, net Interest Rate (1) Contractual Maturity Date Unsecured Loans Unsecured Revolving Credit Facility (2) $ 120,000 $ — $ 230,000 $ — LIBOR+ 1.15% to 1.85% 4/1/2019 (3) 5-Year Term Loan due April 2020 (2)(4) 450,000 (3,783 ) 550,000 (5,571 ) LIBOR+ 1.30% to 2.20% 4/1/2020 5-Year Term Loan due November 2020 (2) 175,000 (793 ) — — LIBOR +1.30% to 2.20% 11/17/2020 7-Year Term Loan due April 2022 (2)(5) 350,000 (2,372 ) 350,000 (2,656 ) LIBOR+ 1.60% to 2.55% 4/1/2022 7-Year Term Loan due November 2022 (2)(6) 125,000 (970 ) — — LIBOR + 1.60% to 2.55% 11/17/2022 Series A Notes 110,000 (970 ) 110,000 (1,011 ) 4.34% 1/2/2023 Series E Notes 50,000 (311 ) — — 3.66% 9/15/2023 Series B Notes 259,000 (2,335 ) 259,000 (2,378 ) 4.69% 12/16/2025 Series D Notes 150,000 (922 ) — — 3.98% 7/6/2026 Series C Notes 56,000 (552 ) 56,000 (509 ) 4.79% 12/16/2027 Total Unsecured Loans 1,845,000 (13,008 ) 1,555,000 (12,125 ) Mortgage Loans Mortgage Loan secured by Rincon Center (7) 100,886 (236 ) 102,309 (355 ) 5.13% 5/1/2018 Mortgage Loan secured by Sunset Gower/Sunset Bronson (8) 5,001 (1,712 ) 115,001 (2,232 ) LIBOR+2.25% 3/4/2019 (3) Mortgage Loan secured by Met Park North (9) 64,500 (426 ) 64,500 (509 ) LIBOR+1.55% 8/1/2020 Mortgage Loan secured by 10950 Washington (7) 28,053 (371 ) 28,407 (421 ) 5.32% 3/11/2022 Mortgage Loan secured by Pinnacle I (10)(11) 129,000 (618 ) 129,000 (694 ) 3.95% 11/7/2022 Mortgage Loan secured by Element L.A. 168,000 (2,387 ) 168,000 (2,584 ) 4.59% 11/6/2025 Mortgage Loan secured by Pinnacle II (11) 87,000 (739 ) 86,228 1,310 (12) 4.30% 6/11/2026 Mortgage Loan secured by 901 Market — — 30,000 (119 ) N/A N/A Total Mortgage Loans (13) 582,440 (6,489 ) 723,445 (5,604 ) Total $ 2,427,440 $ (19,497 ) $ 2,278,445 $ (17,729 ) _________________ (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 September 30, 2016 , which may be different than the interest rates as of December 31, 2015 for corresponding indebtedness. (2) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of September 30, 2016 , no such election had been made. (3) The maturity date may be extended once for an additional one -year term. (4) Effective May 1, 2015, $300.0 million of the term loan has been effectively fixed at 2.66% to 3.56% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate with respect to $300.0 million of the term loan increased to a range of 2.75% to 3.65% per annum. See Note 11—Derivative Instruments for details. (5) Effective May 1, 2015, the outstanding balance of the term loan has been effectively fixed at 3.21% to 4.16% per annum through the use of an interest rate swap. In July 2016, the Company amended this interest rate swap to add a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative related to this loan. Therefore, the effective interest rate increased to a range of 3.36% to 4.31% per annum. See Note 11—Derivative Instruments for details. (6) Effective June 1, 2016, the outstanding balance of the term loan has been effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 11—Derivative Instruments for details. (7) Monthly debt service includes annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (8) Through February 11, 2016, interest on $92.0 million of the outstanding loan balance was effectively capped at 5.97% and 4.25% on $50.0 million and $42.0 million , respectively, of the loan through the use of two interest rate caps. These interest rate caps were not renewed after maturity. (9) This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 11—Derivative Instruments for details. (10) This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30 -year amortization schedule with a balloon payment at maturity. (11) The Company owns approximately 65% of the ownership interests in the joint venture that owns the Pinnacle I and II properties. (12) Represents unamortized premium amount of the non-cash mark-to-market adjustment. (13) Total mortgage loans do not include the balance related to a loan entered on October 7, 2016 for $101.0 million with a fixed interest rate of 3.38% per annum. This loan was entered into in conjunction with the acquisition of the Hill7 office property through a joint venture with Canadian Pension Plan Investment Board. The Company owns 55% of the ownership interest in the joint venture. See Note 20—Subsequent Events for details. |
Schedule of Maturities of Long-term Debt | The minimum future principal payments due on the Company’s secured and unsecured notes payable at September 30, 2016 were as follows (before the impact of extension options, if applicable): Annual Principal Payments Remaining 2016 $ 601 2017 2,714 2018 101,157 2019 127,886 2020 692,493 Thereafter 1,502,589 Total $ 2,427,440 |
Future Minimum Base Rents and34
Future Minimum Base Rents and Lease Payments Future Minimum Rents (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties at September 30, 2016 are presented below for the next five years and thereafter are as follows: Non-cancellable Subject to early termination options Total (1) Remaining 2016 $ 112,066 $ — $ 112,066 2017 455,911 4,825 460,736 2018 409,086 24,596 433,682 2019 358,035 26,550 384,585 2020 292,595 7,615 300,210 Thereafter 1,029,548 77,876 1,107,424 Total $ 2,657,241 $ 141,462 $ 2,798,703 _________________ (1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less. |
Schedule of Acquired Ground Lease Agreements | The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations: Property Expiration Date Notes Sunset Gower 3/31/2060 Every 7 years rent adjusts to 7.5% of Fair Market Value (“FMV”) of the land. Del Amo Office 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. 9300 Wilshire Blvd. 8/14/2032 Additional rent is the sum by which 6% of gross rental from the prior calendar year exceeds the Minimum Rent. 222 Kearny Street 6/14/2054 Minimum annual rent is the greater of $975 thousand or 20% of the first $8.0 million of the tenant’s “Operating Income” during any “Lease Year,” as such terms are defined in the ground lease. Page Mill Center 11/30/2041 Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of adjusted gross income (“AGI”), less minimum annual rent. Clocktower Square Bldg 9/26/2056 Minimum annual rent (adjusted every 10 years) plus 25% of AGI less minimum annual rent. Palo Alto Square 11/30/2045 Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent. Lockheed Building 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. Foothill Research Ctr 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%. 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of FMV of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income x 24.125%. This lease has been prepaid through October 31, 2017. Metro Center Tower 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013). Techmart Commerce Center 5/31/2053 Subject to a 10% increase every 5 years. 11601 Wilshire Boulevard 10/31/2064 Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in CPI. |
Schedule of Rent Expense | The Company recognized the following contingent rental expense and minimum rental expense for our ground leases and corporate office lease: Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Contingent rental expense $ 1,970 $ 1,041 $ 6,417 $ 2,098 Minimum rental expense 3,070 3,234 10,064 6,913 |
Schedule of Future Minimum Lease Payments | The following table provides information regarding the Company’s future minimum lease payments for its ground lease at September 30, 2016 (before the impact of extension options, if applicable): Ground Leases (1)(2)(3) Remaining 2016 $ 3,649 2017 13,002 2018 14,668 2019 14,718 2020 14,718 Thereafter 449,402 Total $ 510,157 _________________ (1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . (2) In situations where ground lease obligation adjustments are based on CPI adjustment, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . (3) In situations where ground lease obligation adjustments are based on the percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of September 30, 2016 . |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets $ — $ — $ — $ — $ — $ 2,061 $ — $ 2,061 Derivative liabilities — 22,413 — 22,413 — 2,010 — 2,010 |
Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of assets and liabilities at: September 30, 2016 December 31, 2015 Carrying Value Fair Value Carrying Value Fair Value Notes payable, net (1) $ 2,427,440 $ 2,451,539 $ 2,279,755 $ 2,284,429 Notes receivable, net — — 28,684 28,684 _________________ (1) Amounts represent total notes payable including unamortized loan premium and excludes net deferred financing fees. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Related to OPP Plans and Restricted Stock Awards | The following table presents the classification and amount recognized for stock compensation related to the Company’s OPP plans and restricted stock awards: Three Months Ended September 30, Nine Months Ended September 30, Consolidated Financial Statement Classification 2016 2015 2016 2015 Expensed stock compensation $ 3,288 $ 2,034 $ 9,931 $ 6,186 general and administrative expenses Capitalized stock compensation 112 103 300 314 deferred leasing costs and lease intangibles assets, net and tenant improvements Total stock compensation $ 3,400 $ 2,137 $ 10,231 $ 6,500 additional paid-in capital |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted per share computations for net income available to common stockholders: Three months ended September 30, Nine months ended September 30, 2016 2015 2016 2015 Numerator: Net income (loss) $ 5,217 $ (1,828 ) $ 15,228 $ (13,337 ) Preferred dividends (159 ) (3,195 ) (477 ) (9,585 ) Income attributable to participating securities (196 ) (79 ) (589 ) (229 ) Income attributable to non-controlling interest in consolidated entities (2,525 ) (1,273 ) (6,866 ) (4,668 ) (Income) loss attributable to non-controlling units of the operating partnership (490 ) 2,470 (2,357 ) 17,872 Numerator for basic and diluted net income (loss) available to common stockholders $ 1,847 $ (3,905 ) $ 4,939 $ (9,947 ) Denominator: Basic weighted average common shares outstanding 115,083,622 88,984,236 99,862,583 84,894,863 Effect of dilutive instruments (1) 1,179,000 — 1,117,000 — Diluted weighted average common shares outstanding 116,262,622 88,984,236 100,979,583 84,894,863 Basic earnings per common share: $ 0.02 $ (0.04 ) $ 0.05 $ (0.12 ) Diluted earnings per common share: $ 0.02 $ (0.04 ) $ 0.05 $ (0.12 ) ________________ (1) The Company includes unvested awards as contingently issuable shares in the computation of diluted EPS once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted EPS calculation. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | The tables below present the effect of the Company’s derivative financial instruments on accumulated other comprehensive loss (“OCI”): Hudson Pacific Properties, Inc. Stockholder ’ s Equity Non-controlling interests Total Equity Balance at January 1, 2016 $ 1,081 $ (1,017 ) $ 64 Unrealized loss recognized in OCI due to change in fair value of derivative 16,542 10,880 27,422 Loss reclassified from OCI into income (as interest expense) (3,984 ) (2,620 ) (6,604 ) Net change in OCI 12,558 8,260 20,818 Balance at September 30, 2016 $ 13,639 $ 7,243 $ 20,882 Hudson Pacific Properties, Inc. Stockholder ’ s Equity Non-controlling interests Total Equity Balance at January 1, 2015 $ 2,443 $ 218 $ 2,661 Unrealized loss recognized in OCI due to change in fair value of derivative 10,594 5,733 16,327 Loss reclassified from OCI into income (as interest expense) (6,506 ) (3,521 ) (10,027 ) Net change in OCI 4,088 2,212 6,300 Balance at September 30, 2015 $ 6,531 $ 2,430 $ 8,961 |
Organization - Narrative (Detai
Organization - Narrative (Details) $ in Millions | Apr. 01, 2015USD ($)ft²projectpropertyshares | Sep. 30, 2016ft²propertybuilding | Sep. 30, 2015ft²building | Dec. 31, 2015ft²projectproperty |
Business Acquisition [Line Items] | ||||
Number of real estate properties acquired | building | 6 | 2 | ||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | ||
Office Properties | ||||
Business Acquisition [Line Items] | ||||
Number of real estate properties | 52 | |||
Media and Entertainment Properties | ||||
Business Acquisition [Line Items] | ||||
Number of real estate properties | 2 | |||
EOP Northern California Portfolio | ||||
Business Acquisition [Line Items] | ||||
Area of real estate property (in square feet) | ft² | 8,200,000 | 8,200,000 | ||
Gross payments to acquire business | $ | $ 1,750 | |||
Consideration transferred, common units (in shares) | shares | 63,474,791 | |||
EOP Northern California Portfolio | Office Building | ||||
Business Acquisition [Line Items] | ||||
Number of real estate properties acquired | 26 | 26 | ||
EOP Northern California Portfolio | Development Parcel | ||||
Business Acquisition [Line Items] | ||||
Number of development projects acquired | project | 2 | 2 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Narrative (Details) | 9 Months Ended |
Sep. 30, 2016entity | |
Accounting Policies [Abstract] | |
Number of joint ventures consolidated as VIEs | 2 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) | Jul. 01, 2016USD ($)ft² | Apr. 01, 2015ft²projectproperty | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($)ft² | Sep. 30, 2016USD ($)ft²building | Sep. 30, 2015USD ($)ft²building | Dec. 31, 2015ft²projectproperty | Nov. 03, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | 820,587 | 483,862 | ||||
Payments to purchase office building | $ 307,919,000 | $ 1,804,596,000 | ||||||
Allocation of consideration paid | ||||||||
Number of real estate properties acquired | building | 6 | 2 | ||||||
Gains on sale of real estate | $ 0 | $ 8,371,000 | $ 8,515,000 | $ 30,471,000 | ||||
Impairment charges | 0 | $ 0 | 0 | 0 | ||||
Disposal group disposed by sale, not discontinued operations | 12655 Jefferson | Subsequent Event | ||||||||
Allocation of consideration paid | ||||||||
Consideration for discontinued operations | $ 80,000,000 | |||||||
EOP Northern California Portfolio | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Area of real estate property (in square feet) | ft² | 8,200,000 | 8,200,000 | ||||||
EOP Northern California Portfolio | Office Building | ||||||||
Allocation of consideration paid | ||||||||
Number of real estate properties acquired | property | 26 | 26 | ||||||
EOP Northern California Portfolio | Development Parcel | ||||||||
Allocation of consideration paid | ||||||||
Number of development projects acquired | project | 2 | 2 | ||||||
11601 Wilshire Boulevard Office Building | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Area of real estate property (in square feet) | ft² | 500,475 | |||||||
Payments to purchase office building | $ 311,000,000 | |||||||
Acquiree Revenue | 5,400,000 | 5,400,000 | ||||||
Acquiree net loss | $ 1,800,000 | 1,800,000 | ||||||
Allocation of consideration paid | ||||||||
Investment in real estate, net | 300,430,000 | |||||||
Net asset and liabilities assumed | 307,919,000 | |||||||
Total revenues | 483,193,000 | 382,327,000 | ||||||
Net income (loss) | $ 11,608,000 | $ (18,767,000) | ||||||
11601 Wilshire Boulevard Office Building | Above-market leases | ||||||||
Allocation of consideration paid | ||||||||
Intangible assets | $ 167,000 | |||||||
Intangible assets, weighted average useful lives | 6 years 2 months 21 days | |||||||
11601 Wilshire Boulevard Office Building | Deferred leasing costs and lease intangible assets, net | ||||||||
Allocation of consideration paid | ||||||||
Intangible assets | $ 13,884,000 | |||||||
Intangible assets, weighted average useful lives | 5 years 6 months 21 days | |||||||
11601 Wilshire Boulevard Office Building | Below-market lease | ||||||||
Allocation of consideration paid | ||||||||
Intangible assets | $ 6,562,000 | |||||||
Intangible assets, weighted average useful lives | 7 years 3 months 21 days |
Investment in Real Estate - Sum
Investment in Real Estate - Summary of Property Sold (Details) $ in Millions | Jun. 01, 2016USD ($)ft²building | Apr. 07, 2016USD ($)ft²building | Jan. 14, 2016USD ($)ft²building | Mar. 06, 2015USD ($)ft²building | Sep. 30, 2016USD ($)ft²building | Sep. 30, 2015USD ($)ft²building | Jan. 07, 2015 |
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 6 | 2 | |||||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | |||||
Proceeds from sale of real estate | $ | $ 287.4 | $ 179 | |||||
Bayhill Office Center | |||||||
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 4 | ||||||
Area of real estate property (in square feet) | ft² | 554,328 | ||||||
Proceeds from sale of real estate | $ | $ 215 | ||||||
Patrick Henry Drive | |||||||
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 1 | ||||||
Area of real estate property (in square feet) | ft² | 70,520 | ||||||
Proceeds from sale of real estate | $ | $ 19 | ||||||
One Bay Plaza | |||||||
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 1 | ||||||
Area of real estate property (in square feet) | ft² | 195,739 | ||||||
Proceeds from sale of real estate | $ | $ 53.4 | ||||||
First Financial | |||||||
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 1 | ||||||
Area of real estate property (in square feet) | ft² | 223,679 | ||||||
Proceeds from sale of real estate | $ | $ 89 | ||||||
Bay Park Plaza | |||||||
Real Estate [Line Items] | |||||||
Number of real estate properties acquired | building | 1 | ||||||
Area of real estate property (in square feet) | ft² | 260,183 | ||||||
Proceeds from sale of real estate | $ | $ 90 | ||||||
1455 Market Street | |||||||
Real Estate [Line Items] | |||||||
Real estate property, ownership (as a percent) | 45.00% |
Investment in Real Estate - Rea
Investment in Real Estate - Real Estate Asset Held For Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets associated with real estate held for sale | $ 62,323 | $ 330,300 |
Liabilities associated with real estate held for sale | 14,542 | 16,791 |
12655 Jefferson | Disposal group held for sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Investment in real estate, net | 58,915 | 313,344 |
Straight-line rent receivables, net | 292 | 2,016 |
Deferred leasing costs and lease intangible assets, net | 2,774 | 14,415 |
Other | 342 | 525 |
Assets associated with real estate held for sale | 62,323 | 330,300 |
Accounts payable and accrued liabilities | 3,634 | 3,831 |
Other | 10,908 | 12,960 |
Liabilities associated with real estate held for sale | $ 14,542 | $ 16,791 |
Investment in Real Estate - Cos
Investment in Real Estate - Cost Capitalized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Real Estate [Abstract] | ||||
Capitalized personnel costs | $ 2,351 | $ 2,227 | $ 6,989 | $ 5,063 |
Capitalized interests | $ 2,960 | $ 1,279 | $ 8,414 | $ 4,561 |
Deferred Leasing Costs and Le45
Deferred Leasing Costs and Lease Intangibles, net - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Deferred leasing costs and lease intangibles, net | $ 289,682 | $ 289,682 | $ 314,483 | ||
Other Liabilities, Unclassified [Abstract] | |||||
Below and above market ground leases, net | 77,081 | 77,081 | 94,446 | ||
Amortization of above- and below-market leases, net | (13,804) | $ (15,761) | |||
Below Market Leases | |||||
Other Liabilities, Unclassified [Abstract] | |||||
Below and above market ground leases | 134,445 | 134,445 | 138,852 | ||
Below and above market ground leases, accumulated amortization | (58,381) | (58,381) | (45,455) | ||
Below and above market ground leases, net | 76,064 | 76,064 | 93,397 | ||
Amortization of above- and below-market leases, net | 7,311 | $ 8,393 | 24,027 | 24,512 | |
Above Market Ground Leases | |||||
Other Liabilities, Unclassified [Abstract] | |||||
Below and above market ground leases | 1,095 | 1,095 | 1,095 | ||
Below and above market ground leases, accumulated amortization | (78) | (78) | (46) | ||
Below and above market ground leases, net | 1,017 | 1,017 | 1,049 | ||
Amortization of above- and below-market leases, net | 11 | 18 | 33 | 35 | |
Above-market leases | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Deferred leasing costs and lease intangibles | 23,197 | 23,197 | 38,465 | ||
Accumulated amortization | (12,004) | (12,004) | (17,206) | ||
Deferred leasing costs and lease intangibles, net | 11,193 | 11,193 | 21,259 | ||
Other Liabilities, Unclassified [Abstract] | |||||
Amortization of above- and below-market leases, net | 2,809 | 4,489 | 10,223 | 8,751 | |
Deferred leasing costs and in-place lease intangibles | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Deferred leasing costs and lease intangibles | 361,416 | 361,416 | 347,531 | ||
Accumulated amortization | (138,111) | (138,111) | (111,128) | ||
Deferred leasing costs and lease intangibles, net | 223,305 | 223,305 | 236,403 | ||
Other Liabilities, Unclassified [Abstract] | |||||
Amortization of above- and below-market leases, net | 20,742 | 29,312 | 65,408 | 65,058 | |
Below-market ground leases | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Deferred leasing costs and lease intangibles | 59,578 | 59,578 | 59,578 | ||
Accumulated amortization | (4,394) | (4,394) | (2,757) | ||
Deferred leasing costs and lease intangibles, net | 55,184 | 55,184 | $ 56,821 | ||
Other Liabilities, Unclassified [Abstract] | |||||
Amortization of above- and below-market leases, net | $ 545 | $ 533 | $ 1,637 | $ 1,127 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accounts receivable | $ 11,466 | $ 22,060 |
Allowance for doubtful accounts | (1,845) | (1,012) |
Accounts receivable, net | $ 9,621 | $ 21,048 |
Straight-line Rent Receivable47
Straight-line Rent Receivables, net (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (1,845) | $ (1,012) |
Straight-line rent receivables, net | 78,282 | 59,408 |
Allowance for Straight-Line Receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Straight-line rent receivables | 78,358 | 60,378 |
Allowance for doubtful accounts | (76) | (970) |
Straight-line rent receivables, net | $ 78,282 | $ 59,408 |
Notes Receivable, net (Details)
Notes Receivable, net (Details) - USD ($) $ in Thousands | Aug. 19, 2014 | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | |||
Loan participation agreement, maximum principal | $ 140,000 | ||
Loan participation agreement, maximum principal, company share, percent | 23.77% | ||
Loan participation agreement, maximum principal, company share, amount | $ 33,300 | ||
Note receivable, interest rate | 11.00% | ||
Commitment fee received | $ 400 | ||
Notes receivable, net | $ 0 | $ 28,684 |
Investment in Unconsolidated 49
Investment in Unconsolidated Entity (Details) | Sep. 30, 2016 |
Variable Interest Entity, Not Primary Beneficiary | Santa Clara, CA Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Interest in joint venture | 21.40% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 8,754 | $ 8,754 |
Notes Payable - Summary of Note
Notes Payable - Summary of Notes Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Notes payable | $ 2,427,440 | $ 2,278,445 |
Less: unamortized loan premium and deferred financing costs, net | (19,497) | (17,729) |
Notes payable, net | 2,407,943 | 2,260,716 |
Prepaid expenses and other assets, net | ||
Short-term Debt [Line Items] | ||
Deferred financing costs | $ 1,700 | $ 4,100 |
Notes Payable - Summary of Outs
Notes Payable - Summary of Outstanding Indebtedness (Details) - USD ($) $ in Thousands | Aug. 22, 2013 | Jul. 31, 2013 | Feb. 11, 2011 | Sep. 30, 2016 | Feb. 11, 2016 | Dec. 31, 2015 | Aug. 21, 2013 |
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 2,427,440 | $ 2,278,445 | |||||
Deferred Financing Costs, net | (19,497) | (17,729) | |||||
Sunset Gower Sunset Bronson | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 97,000 | $ 92,000 | $ 92,000 | ||||
Sunset Gower Sunset Bronson | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% | 3.50% | |||||
Met Park North | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 64,500 | ||||||
Met Park North | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.55% | ||||||
Unsecured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 1,845,000 | 1,555,000 | |||||
Deferred Financing Costs, net | (13,008) | (12,125) | |||||
Unsecured Debt | Revolving Credit Facility 2014 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 120,000 | 230,000 | |||||
Deferred Financing Costs, net | $ 0 | 0 | |||||
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.15% | ||||||
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.85% | ||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 450,000 | 550,000 | |||||
Deferred Financing Costs, net | $ (3,783) | (5,571) | |||||
Unsecured Debt | 5-Year Term Loan due April 2020 | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.30% | ||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.20% | ||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 175,000 | 0 | |||||
Deferred Financing Costs, net | $ (793) | 0 | |||||
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.30% | ||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.20% | ||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 350,000 | 350,000 | |||||
Deferred Financing Costs, net | $ (2,372) | (2,656) | |||||
Unsecured Debt | 7-Year Term Loan due April 2022 | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.60% | ||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.55% | ||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 125,000 | 0 | |||||
Deferred Financing Costs, net | $ (970) | 0 | |||||
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.60% | ||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.55% | ||||||
Unsecured Debt | Series A Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 110,000 | 110,000 | |||||
Deferred Financing Costs, net | $ (970) | (1,011) | |||||
Interest Rate | 4.34% | ||||||
Unsecured Debt | Series E Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 50,000 | 0 | |||||
Deferred Financing Costs, net | $ (311) | 0 | |||||
Interest Rate | 3.66% | ||||||
Unsecured Debt | Series B Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 259,000 | 259,000 | |||||
Deferred Financing Costs, net | $ (2,335) | (2,378) | |||||
Interest Rate | 4.69% | ||||||
Unsecured Debt | Series D Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 150,000 | 0 | |||||
Deferred Financing Costs, net | $ (922) | 0 | |||||
Interest Rate | 3.98% | ||||||
Unsecured Debt | Series C Notes | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 56,000 | 56,000 | |||||
Deferred Financing Costs, net | $ (552) | (509) | |||||
Interest Rate | 4.79% | ||||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 582,440 | 723,445 | |||||
Deferred Financing Costs, net | (6,489) | (5,604) | |||||
Secured Debt | Rincon Center | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | 100,886 | 102,309 | |||||
Deferred Financing Costs, net | $ (236) | (355) | |||||
Interest Rate | 5.13% | ||||||
Secured Debt | Sunset Gower Sunset Bronson | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 5,001 | $ 92,000 | 115,001 | ||||
Deferred Financing Costs, net | $ (1,712) | (2,232) | |||||
Secured Debt | Sunset Gower Sunset Bronson | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.25% | ||||||
Secured Debt | Met Park North | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 64,500 | 64,500 | |||||
Deferred Financing Costs, net | $ (426) | (509) | |||||
Secured Debt | Met Park North | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.15% | ||||||
Secured Debt | 10950 Washington | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 28,053 | 28,407 | |||||
Deferred Financing Costs, net | $ (371) | (421) | |||||
Interest Rate | 5.32% | ||||||
Secured Debt | Pinnacle I | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 129,000 | 129,000 | |||||
Deferred Financing Costs, net | $ (618) | (694) | |||||
Interest Rate | 3.95% | ||||||
Secured Debt | Element LA | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 168,000 | 168,000 | |||||
Deferred Financing Costs, net | $ (2,387) | (2,584) | |||||
Interest Rate | 4.59% | ||||||
Secured Debt | Pinnacle II | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 87,000 | 86,228 | |||||
Deferred Financing Costs, net | $ (739) | 1,310 | |||||
Interest Rate | 4.30% | ||||||
Secured Debt | 901 Market | |||||||
Debt Instrument [Line Items] | |||||||
Principal Amount | $ 0 | 30,000 | |||||
Deferred Financing Costs, net | $ 0 | $ (119) |
Notes Payable - Schedule of Mat
Notes Payable - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Disclosure [Abstract] | ||
Remaining 2,016 | $ 601 | |
2,017 | 2,714 | |
2,018 | 101,157 | |
2,019 | 127,886 | |
2,020 | 692,493 | |
Thereafter | 1,502,589 | |
Total | $ 2,427,440 | $ 2,278,445 |
Notes Payable - Narrative (Deta
Notes Payable - Narrative (Details) | Oct. 07, 2016USD ($) | Jul. 06, 2016USD ($) | Jun. 07, 2016USD ($) | May 03, 2016USD ($) | Nov. 17, 2015USD ($) | Apr. 01, 2015USD ($) | Jul. 31, 2013USD ($) | Feb. 11, 2011USD ($) | Sep. 30, 2016USD ($)derivative | Jul. 31, 2016 | Jul. 01, 2016 | Jun. 01, 2016 | Feb. 11, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 16, 2015USD ($) | May 01, 2015 | Aug. 22, 2013USD ($) | Aug. 21, 2013USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||||
Duration used in interest rate calculation | 360 days | |||||||||||||||||
Notes payable | $ 2,427,440,000 | $ 2,278,445,000 | ||||||||||||||||
Joint Venture That Owns Pinnacle I and II | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Real estate property, ownership (as a percent) | 65.00% | |||||||||||||||||
Joint Venture with the Canadian Pension Plan Investment Board | Subsequent Event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Real estate property, ownership (as a percent) | 55.00% | |||||||||||||||||
Sunset Gower Sunset Bronson | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 92,000,000 | $ 97,000,000 | $ 92,000,000 | |||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Principal amount guaranteed | 19.50% | |||||||||||||||||
Maximum exposure for guarantee | $ 1,000,000 | |||||||||||||||||
Rincon Center and 10950 Washington | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||||||||
Met Park North | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 3.71% | |||||||||||||||||
Notes payable | $ 64,500,000 | |||||||||||||||||
Term of loan facility | 7 years | |||||||||||||||||
Pinnacle I | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Periodic payment, debt service payment term | 30 years | |||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
A & R Credit Facilities | Hudson Pacific Partners L.P. | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum leverage ratio | 0.60 | |||||||||||||||||
Maximum unencumbered leverage ratio | 0.60 | |||||||||||||||||
Minimum fixed charge coverage ratio | 1.50 | |||||||||||||||||
Minimum unsecured interest coverage ratio | 2 | |||||||||||||||||
Unsecured Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 1,845,000,000 | 1,555,000,000 | ||||||||||||||||
Unsecured Debt | Revolving Credit Facility 2014 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, extension period | 1 year | |||||||||||||||||
Notes payable | $ 120,000,000 | 230,000,000 | ||||||||||||||||
Unsecured Debt | 5 Year Term Loan Facility 2015 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Unsecured Debt | 5 Year Term Loan Facility 2015 | LIBOR | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 2.75% | 2.66% | ||||||||||||||||
Unsecured Debt | 5 Year Term Loan Facility 2015 | LIBOR | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 3.65% | 3.56% | ||||||||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 125,000,000 | 0 | ||||||||||||||||
Term of loan facility | 7 years | 7 years | ||||||||||||||||
Face amount | $ 125,000,000 | |||||||||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners L.P. | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 7 years | |||||||||||||||||
Face amount | $ 125,000,000 | |||||||||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 3.03% | |||||||||||||||||
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 3.98% | |||||||||||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 7 years | |||||||||||||||||
Face amount | $ 350,000,000 | |||||||||||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | LIBOR | Minimum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 3.36% | 3.21% | ||||||||||||||||
Unsecured Debt | 7 Year Term Loan Facility 2015 | LIBOR | Maximum | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 4.31% | 4.16% | ||||||||||||||||
Unsecured Debt | Senior Notes | Hudson Pacific Partners L.P. | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Face amount | $ 425,000,000 | |||||||||||||||||
Maximum secured indebtedness leverage ratio | 0.45 | |||||||||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 175,000,000 | 0 | ||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Face amount | $ 175,000,000 | |||||||||||||||||
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners L.P. | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Face amount | $ 175,000,000 | |||||||||||||||||
Unsecured Debt | 5-Year Term Loan due April 2020 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 450,000,000 | 550,000,000 | ||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Repayments of unsecured debt | $ 100,000,000 | |||||||||||||||||
Unsecured Debt | 7-Year Term Loan due April 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 350,000,000 | 350,000,000 | ||||||||||||||||
Senior Notes | 3.98% Guaranteed Notes, Due 2026 | 11601 Wilshire Boulevard Office Building | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Proceeds from issuance of long-term debt | $ 150,000,000 | |||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.98% | |||||||||||||||||
Senior Notes | 3.66% Guaranteed Notes, Due 2023 | 11601 Wilshire Boulevard Office Building | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Proceeds from issuance of long-term debt | $ 50,000,000 | |||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.66% | |||||||||||||||||
Secured Debt | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 582,440,000 | 723,445,000 | ||||||||||||||||
Secured Debt | Sunset Gower Sunset Bronson | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, extension period | 1 year | |||||||||||||||||
Notes payable | $ 5,001,000 | $ 92,000,000 | 115,001,000 | |||||||||||||||
Number of derivative instruments held | derivative | 2 | |||||||||||||||||
Repayments of secured debt | 110,000,000 | |||||||||||||||||
Secured Debt | Sunset Gower Sunset Bronson, Loan A | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 5.97% | |||||||||||||||||
Notes payable | $ 50,000,000 | |||||||||||||||||
Secured Debt | Sunset Gower Sunset Bronson, Loan B | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Adjusted interest rate | 4.25% | |||||||||||||||||
Notes payable | $ 42,000,000 | |||||||||||||||||
Secured Debt | Pinnacle II | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 4.30% | |||||||||||||||||
Notes payable | 87,000,000 | 86,228,000 | ||||||||||||||||
Term of loan facility | 10 years | |||||||||||||||||
Face amount | $ 87,000,000 | |||||||||||||||||
Secured Debt | Met Park North | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | 64,500,000 | 64,500,000 | ||||||||||||||||
Secured Debt | Pinnacle I | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | 129,000,000 | 129,000,000 | ||||||||||||||||
Secured Debt | Hill7 Office Development | Subsequent Event | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Debt instrument, extension period | 2 years | |||||||||||||||||
Debt instrument, stated interest rate (as a percent) | 3.38% | |||||||||||||||||
Term of loan facility | 10 years | |||||||||||||||||
Face amount | $ 101,000,000 | |||||||||||||||||
Secured Debt | 901 Market | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notes payable | $ 0 | $ 30,000,000 | ||||||||||||||||
Repayments of secured debt | 30,000,000 | |||||||||||||||||
Line of Credit | Hudson Pacific Partners L.P. | Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 5 years | |||||||||||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||||||||||||
Line of Credit | 5-Year Term Loan due April 2020 | Hudson Pacific Partners L.P. | Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Maximum borrowing capacity | $ 550,000,000 | |||||||||||||||||
Line of Credit | 7-Year Term Loan due April 2022 | Hudson Pacific Partners L.P. | Revolving Credit Facility | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Term of loan facility | 7 years | |||||||||||||||||
Maximum borrowing capacity | $ 350,000,000 | |||||||||||||||||
Interest Rate Contract | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notional amount | $ 300,000,000 | |||||||||||||||||
Interest Rate Contract | 7-Year Term Loan due November 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Notional amount | $ 125,000,000 | |||||||||||||||||
Interest Rate Floor | 5 Year Term Loan Facility 2015 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative, interest rate floor | 0.00% | |||||||||||||||||
Interest Rate Floor | 7-Year Term Loan due November 2022 | LIBOR | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Derivative, interest rate floor | 0.00% |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | Nov. 17, 2015USD ($) | Apr. 01, 2015USD ($) | Mar. 04, 2015USD ($) | Aug. 22, 2013USD ($) | Jul. 31, 2013USD ($) | Feb. 11, 2011USD ($) | Sep. 30, 2016USD ($)derivative | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)derivative | Sep. 30, 2015USD ($) | Jul. 31, 2016 | Jul. 01, 2016 | Jun. 01, 2016 | May 03, 2016USD ($) | Dec. 31, 2015USD ($)derivative | May 01, 2015 | Aug. 21, 2013USD ($) | Jan. 11, 2012 | Mar. 16, 2011 |
Derivative | |||||||||||||||||||
Notes payable | $ 2,427,440,000 | $ 2,427,440,000 | $ 2,278,445,000 | ||||||||||||||||
Derivative assets | 0 | 0 | 2,061,000 | ||||||||||||||||
Derivative liabilities | 22,413,000 | 22,413,000 | 2,010,000 | ||||||||||||||||
Cash flow hedge adjustment | 7,700,000 | ||||||||||||||||||
Level 2 | |||||||||||||||||||
Derivative | |||||||||||||||||||
Derivative assets | 0 | 0 | 2,061,000 | ||||||||||||||||
Derivative liabilities | 22,413,000 | 22,413,000 | 2,010,000 | ||||||||||||||||
Unsecured Debt | |||||||||||||||||||
Derivative | |||||||||||||||||||
Notes payable | 1,845,000,000 | $ 1,845,000,000 | 1,555,000,000 | ||||||||||||||||
5 Year Term Loan Facility 2015 | Unsecured Debt | |||||||||||||||||||
Derivative | |||||||||||||||||||
Term of loan facility | 5 years | ||||||||||||||||||
5 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Minimum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 2.75% | 2.66% | |||||||||||||||||
5 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Maximum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 3.65% | 3.56% | |||||||||||||||||
New Credit Agreement - Term Loan | Unsecured Debt | LIBOR | Minimum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Basis spread on variable rate | 1.30% | ||||||||||||||||||
New Credit Agreement - Term Loan | Unsecured Debt | LIBOR | Maximum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Basis spread on variable rate | 2.20% | ||||||||||||||||||
7 Year Term Loan Facility 2015 | Unsecured Debt | |||||||||||||||||||
Derivative | |||||||||||||||||||
Term of loan facility | 7 years | ||||||||||||||||||
Face amount | $ 350,000,000 | ||||||||||||||||||
7 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Minimum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 3.36% | 3.21% | |||||||||||||||||
7 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Maximum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 4.31% | 4.16% | |||||||||||||||||
7-Year Term Loan due November 2022 | Unsecured Debt | |||||||||||||||||||
Derivative | |||||||||||||||||||
Term of loan facility | 7 years | 7 years | |||||||||||||||||
Face amount | $ 125,000,000 | ||||||||||||||||||
Notes payable | $ 125,000,000 | $ 125,000,000 | $ 0 | ||||||||||||||||
7-Year Term Loan due November 2022 | Unsecured Debt | LIBOR | Minimum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 3.03% | ||||||||||||||||||
Basis spread on variable rate | 1.60% | ||||||||||||||||||
7-Year Term Loan due November 2022 | Unsecured Debt | LIBOR | Maximum | |||||||||||||||||||
Derivative | |||||||||||||||||||
Adjusted interest rate | 3.98% | ||||||||||||||||||
Basis spread on variable rate | 2.55% | ||||||||||||||||||
Sunset Gower Sunset Bronson | |||||||||||||||||||
Derivative | |||||||||||||||||||
Term of loan facility | 5 years | ||||||||||||||||||
Notes payable | $ 97,000,000 | $ 92,000,000 | $ 92,000,000 | ||||||||||||||||
Increase in borrowing capacity | $ 160,000,000 | ||||||||||||||||||
Sunset Gower Sunset Bronson | LIBOR | |||||||||||||||||||
Derivative | |||||||||||||||||||
Basis spread on variable rate | 2.25% | 3.50% | |||||||||||||||||
Met Park North | |||||||||||||||||||
Derivative | |||||||||||||||||||
Term of loan facility | 7 years | ||||||||||||||||||
Adjusted interest rate | 3.71% | 3.71% | |||||||||||||||||
Notes payable | $ 64,500,000 | ||||||||||||||||||
Met Park North | LIBOR | |||||||||||||||||||
Derivative | |||||||||||||||||||
Basis spread on variable rate | 1.55% | ||||||||||||||||||
Interest Rate Cap | Sunset Gower Sunset Bronson | LIBOR | |||||||||||||||||||
Derivative | |||||||||||||||||||
Interest rate cap | 2.00% | 3.715% | |||||||||||||||||
Interest Rate Cap | Sunset Gower Sunset Bronson, Loan A | |||||||||||||||||||
Derivative | |||||||||||||||||||
Notional amount of interest rate cash flow hedge derivatives | $ 50,000,000 | ||||||||||||||||||
Fixed interest rate | 5.97% | ||||||||||||||||||
Interest Rate Cap | Sunset Gower Sunset Bronson, Loan B | |||||||||||||||||||
Derivative | |||||||||||||||||||
Notional amount of interest rate cash flow hedge derivatives | $ 42,000,000 | ||||||||||||||||||
Fixed interest rate | 4.25% | ||||||||||||||||||
Interest Rate Contract | |||||||||||||||||||
Derivative | |||||||||||||||||||
Notional amount | $ 300,000,000 | ||||||||||||||||||
Interest Rate Contract | 5 Year Term Loan Facility 2015 | |||||||||||||||||||
Derivative | |||||||||||||||||||
Fixed interest rate | 1.36% | ||||||||||||||||||
Interest Rate Contract | 7 Year Term Loan Facility 2015 | |||||||||||||||||||
Derivative | |||||||||||||||||||
Fixed interest rate | 1.61% | ||||||||||||||||||
Unrealized gain on ineffective portion of derivative instruments | $ 900,000 | ||||||||||||||||||
Unrealized loss on ineffective portion of derivative instruments | $ 0 | $ 1,600,000 | $ 0 | ||||||||||||||||
Interest Rate Contract | 7-Year Term Loan due November 2022 | |||||||||||||||||||
Derivative | |||||||||||||||||||
Notional amount | $ 125,000,000 | ||||||||||||||||||
Fixed interest rate | 1.43% | ||||||||||||||||||
Interest Rate Contract | Met Park North | LIBOR | |||||||||||||||||||
Derivative | |||||||||||||||||||
Interest rate cap | 2.16% | ||||||||||||||||||
Interest Rate Floor | 5 Year Term Loan Facility 2015 | |||||||||||||||||||
Derivative | |||||||||||||||||||
Derivative, interest rate floor | 0.00% | ||||||||||||||||||
Interest Rate Floor | 7-Year Term Loan due November 2022 | LIBOR | |||||||||||||||||||
Derivative | |||||||||||||||||||
Derivative, interest rate floor | 0.00% | ||||||||||||||||||
Designated as Hedging Instrument | Interest Rate Cap | |||||||||||||||||||
Derivative | |||||||||||||||||||
Number of derivative instruments held | derivative | 6 | 6 | 2 | ||||||||||||||||
Notional amount of interest rate cash flow hedge derivatives | $ 839,500,000 | $ 839,500,000 | $ 92,000,000 | ||||||||||||||||
Designated as Hedging Instrument | Interest Rate Swap | |||||||||||||||||||
Derivative | |||||||||||||||||||
Number of derivative instruments held | derivative | 5 | ||||||||||||||||||
Notional amount of interest rate cash flow hedge derivatives | $ 714,500,000 |
Future Minimum Base Rents and56
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Sep. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
Remaining 2,016 | $ 112,066 |
2,017 | 460,736 |
2,018 | 433,682 |
2,019 | 384,585 |
2,020 | 300,210 |
Thereafter | 1,107,424 |
Total | 2,798,703 |
Non-Cancelable Leases | |
Operating Leased Assets [Line Items] | |
Remaining 2,016 | 112,066 |
2,017 | 455,911 |
2,018 | 409,086 |
2,019 | 358,035 |
2,020 | 292,595 |
Thereafter | 1,029,548 |
Total | 2,657,241 |
Subject to Early Termination Options | |
Operating Leased Assets [Line Items] | |
Remaining 2,016 | 0 |
2,017 | 4,825 |
2,018 | 24,596 |
2,019 | 26,550 |
2,020 | 7,615 |
Thereafter | 77,876 |
Total | $ 141,462 |
Future Minimum Base Rents and57
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Ground Leases (Details) - Ground Lease | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Sunset Gower | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 7 years |
Minimum annual rent calculation, percent of fair market value | 7.50% |
Del Amo | |
Operating Leased Assets [Line Items] | |
Lease rent expense | $ 1 |
9300 Wilshire Blvd. | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of increase | 6.00% |
222 Kearny Street | |
Operating Leased Assets [Line Items] | |
Lease rent expense | $ 975,000 |
Minimum annual rent calculation, percent of increase | 20.00% |
Minimum annual rent calculation, operating income during lease year | $ 8,000,000 |
Page Mill Center | |
Operating Leased Assets [Line Items] | |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 25.00% |
Clocktower Square Bldg | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 10 years |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 25.00% |
Palo Alto Square | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 10 years |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 25.00% |
Lockheed Building | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of fair market value | 10.00% |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 24.125% |
Minimum annual rent calculation, percent of CPI | 75.00% |
Foothill Research Ctr | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of fair market value | 10.00% |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 24.125% |
Minimum annual rent calculation, percent of CPI | 75.00% |
3400 Hillview | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of fair market value | 10.00% |
Percentage annual rent calculation, percent of AGI less minimum annual rent | 24.125% |
Minimum annual rent calculation, percent of CPI, next five years | 75.00% |
Minimum annual rent calculation, percent of CPI, thereafter | 75.00% |
Minimum annual rent calculation, cumulative increases in consumer price index | $ 1,000,000 |
Metro Center Tower | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 10 years |
Minimum annual rent calculation, percent of fair market value | 7.233% |
Techmart Commerce Center | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 5 years |
Minimum annual rent calculation, percent of increase | 10.00% |
11601 Wilshire Boulevard Office Building | |
Operating Leased Assets [Line Items] | |
Frequency of rent adjustments | 5 years |
Minimum annual rent calculation, annual increase | $ 50,000 |
Future Minimum Base Rents and58
Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract] | ||||
Contingent rental expense | $ 1,970 | $ 1,041 | $ 6,417 | $ 2,098 |
Minimum rental expense | 3,070 | $ 3,234 | 10,064 | $ 6,913 |
Ground Lease | ||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Remaining 2,016 | 3,649 | 3,649 | ||
2,017 | 13,002 | 13,002 | ||
2,018 | 14,668 | 14,668 | ||
2,019 | 14,718 | 14,718 | ||
2,020 | 14,718 | 14,718 | ||
Thereafter | 449,402 | 449,402 | ||
Total | $ 510,157 | $ 510,157 |
Fair Value of Financial Instr59
Fair Value of Financial Instruments - Fair Value, Recurring and Nonrecurring (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 0 | $ 2,061,000 |
Derivative liabilities | 22,413,000 | 2,010,000 |
Notes payable, net | 2,451,539,000 | 2,284,429,000 |
Notes receivable, net | 0 | 28,684,000 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes payable, net | 2,427,440,000 | 2,279,755,000 |
Notes receivable, net | 0 | 28,684,000 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 2,061,000 |
Derivative liabilities | 22,413,000 | 2,010,000 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance period | 3 years | |||||
Amortization of stock-based compensation | $ 10,231,000 | $ 8,832,000 | ||||
additional paid-in capital | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization of stock-based compensation | $ 9,463,000 | $ 8,832,000 | ||||
Existing and Newly Elected Board Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Existing and Newly Elected Board Member | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 2 years | 2 years | ||||
Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Employees | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Outperformance Program | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum bonus pool | $ 17,500,000 | $ 17,500,000 | ||||
Target bonus pool | 3,700,000 | $ 3,700,000 | ||||
Percent amount TSR exceeds simple annual TSR | 3.00% | |||||
Outperformance Program | additional paid-in capital | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Amortization of stock-based compensation | 3,400,000 | $ 2,137,000 | $ 10,231,000 | $ 6,500,000 | ||
Outperformance Program | general and administrative expenses | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 3,288,000 | 2,034,000 | 9,931,000 | 6,186,000 | ||
Outperformance Program | deferred leasing costs and lease intangibles assets, net and tenant improvements | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 112,000 | $ 103,000 | $ 300,000 | $ 314,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 5,217 | $ (1,828) | $ 15,228 | $ (13,337) |
Comprehensive income attributable to preferred stock | (159) | (3,195) | (477) | (9,585) |
Net income attributable to participating securities | (196) | (79) | (589) | (229) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (2,525) | (1,273) | (6,866) | (4,668) |
(Income) loss attributable to non-controlling units of the operating partnership | (490) | 2,470 | (2,357) | 17,872 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 1,847 | $ (3,905) | $ 4,939 | $ (9,947) |
Basic weighted average shares of common shares outstanding (in shares) | 115,083,622 | 88,984,236 | 99,862,583 | 84,894,863 |
Effect of dilutive securities (in shares) | 1,179,000 | 0 | 1,117,000 | 0 |
Diluted weighted average common shares outstanding (in shares) | 116,262,622 | 88,984,236 | 100,979,583 | 84,894,863 |
Basic earnings per common share (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.12) |
Diluted earnings per common share (in dollars per share) | $ 0.02 | $ (0.04) | $ 0.05 | $ (0.12) |
Equity - Schedule of Other Comp
Equity - Schedule of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 3,729,037 | $ 1,275,015 | ||
Net change in OCI | $ (8,304) | $ 17,153 | 5,590 | 19,637 |
Ending Balance | 3,646,372 | 3,646,372 | ||
Total Equity | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 64 | 2,661 | ||
Unrealized loss recognized in OCI due to change in fair value of derivative | 27,422 | 16,327 | ||
Loss reclassified from OCI into income (as interest expense) | (6,604) | (10,027) | ||
Net change in OCI | 20,818 | 6,300 | ||
Ending Balance | 20,882 | 8,961 | 20,882 | 8,961 |
Hudson Pacific Properties, Inc. Stockholder’s Equity | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | 1,081 | 2,443 | ||
Unrealized loss recognized in OCI due to change in fair value of derivative | 16,542 | 10,594 | ||
Loss reclassified from OCI into income (as interest expense) | (3,984) | (6,506) | ||
Net change in OCI | 12,558 | 4,088 | ||
Ending Balance | 13,639 | 6,531 | 13,639 | 6,531 |
Non-controlling interests | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,017) | 218 | ||
Unrealized loss recognized in OCI due to change in fair value of derivative | 10,880 | 5,733 | ||
Loss reclassified from OCI into income (as interest expense) | (2,620) | (3,521) | ||
Net change in OCI | 8,260 | 2,212 | ||
Ending Balance | $ 7,243 | $ 2,430 | $ 7,243 | $ 2,430 |
Equity - Narrative (Details)
Equity - Narrative (Details) | Jul. 21, 2016shares | May 10, 2016shares | Apr. 10, 2015shares | Apr. 01, 2015ft²shares | Jan. 20, 2015USD ($)$ / sharesshares | Jul. 31, 2016shares | May 31, 2016shares | Sep. 30, 2016ft²building$ / sharesshares | Sep. 30, 2015ft²$ / shares | Mar. 31, 2015$ / sharesshares | Sep. 30, 2016USD ($)ft²building$ / sharesshares | Sep. 30, 2015USD ($)ft²$ / shares | Dec. 31, 2015ft²shares | Jan. 20, 2016USD ($) | Dec. 10, 2015$ / shares | Jan. 07, 2015 |
Class of Stock [Line Items] | ||||||||||||||||
Common units held by noncontrolling interests (in shares) | 26,983,719 | 26,983,719 | 56,296,315 | |||||||||||||
Proceeds from sale of common stock (in shares) | 10,117,223 | 6,037,500 | 11,000,000 | |||||||||||||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | 820,587 | 483,862 | ||||||||||||
Price per share (in dollars per share) | $ / shares | $ 31.75 | |||||||||||||||
Proceeds from issuance of common stock, net | $ | $ 385,600,000 | $ 880,514,000 | $ 380,803,000 | |||||||||||||
Stock repurchase program authorized | $ | $ 100,000,000 | |||||||||||||||
Common dividends declared (in usd per share) | $ / shares | $ 0.2 | $ 0.125 | $ 0.6 | $ 0.375 | ||||||||||||
At-the-Market | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Proceeds from sale of common stock (in shares) | 165,000 | |||||||||||||||
Proceeds from issuance of common stock, net | $ | $ 20,100,000 | |||||||||||||||
Maximum shares authorized, value | $ | $ 125,000,000 | |||||||||||||||
At-the-Market | Minimum | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Price per share (in dollars per share) | $ / shares | 33.54 | $ 33.54 | ||||||||||||||
At-the-Market | Maximum | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 33.95 | $ 33.95 | ||||||||||||||
Series B Preferred Stock | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Interest rate of preferred stock (as a percent) | 8.375% | 8.375% | ||||||||||||||
Shares outstanding of preferred stock (in shares) | 5,800,000 | |||||||||||||||
Liquidation preference of preferred stock (dollars per share) | $ / shares | $ 25 | $ 25 | ||||||||||||||
Par value of preferred stock (in dollars per share) | $ / shares | $ 0.01 | |||||||||||||||
Pinnacle JV | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of buildings in property | building | 2 | 2 | ||||||||||||||
Area of real estate property (in square feet) | ft² | 625,640 | 625,640 | ||||||||||||||
Ownership interest in property (as a percent) | 65.00% | 65.00% | 65.00% | 65.00% | 65.00% | |||||||||||
Canada Pension Plan Investment Board | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Ownership interest in property (as a percent) | 55.00% | 55.00% | 45.00% | |||||||||||||
EOP Northern California Portfolio | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Area of real estate property (in square feet) | ft² | 8,200,000 | 8,200,000 | ||||||||||||||
Consideration transferred, common units (in shares) | 63,474,791 | |||||||||||||||
Performance units | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Conversion ratio | 1 | |||||||||||||||
Public Offering, Exercise of Over-allotment Option | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Proceeds from sale of common stock (in shares) | 1,650,000 | |||||||||||||||
Common Units | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Shares used for valuation of redemption (in shares) | 1 | |||||||||||||||
Conversion ratio | 1 | |||||||||||||||
Proceeds from sale of common stock (in shares) | 29,477,596 | 12,650,000 | ||||||||||||||
Number of shares redeemed during the period (in shares) | 19,000,000 | 10,000,000 | ||||||||||||||
Common Units | EOP Northern California Portfolio | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Consideration transferred, common units (in shares) | 8,626,311 | |||||||||||||||
Common Units | Secondary Public Offering | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Number of shares redeemed during the period (in shares) | 19,195,373 | |||||||||||||||
6.25% series A cumulative redeemable preferred units of the Operating Partnership | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Interest rate of preferred stock (as a percent) | 6.25% | |||||||||||||||
Shares outstanding of preferred stock (in shares) | 407,066 | 407,066 | ||||||||||||||
Liquidation preference of preferred stock (dollars per share) | $ / shares | $ 25 | $ 25 | ||||||||||||||
Preferred dividends declared (dollars per share) | $ / shares | $ 0.3906 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) | Jul. 21, 2016shares | Jul. 01, 2016USD ($)ft² | Jan. 13, 2016nomineedirectordirector_nominee | Dec. 16, 2015ft² | Apr. 01, 2015USD ($)ft²projectdirectorpropertydirector_nomineeshares | May 31, 2016shares | Sep. 30, 2016ft²building | Sep. 30, 2015ft²building | Dec. 31, 2015ft²projectproperty | Mar. 31, 2016director | Dec. 15, 2015ft² |
Related Party Transaction [Line Items] | |||||||||||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | |||||||||
Number of real estate properties acquired | building | 6 | 2 | |||||||||
Directors on the board | director | 10 | 11 | 8 | ||||||||
Director nominees on the board | director_nominee | 3 | ||||||||||
Number of director nominees who resigned | director | 1 | ||||||||||
Number of nominees able to be designated | nominee | 3 | ||||||||||
Equity consideration, lower threshold for three nominee designations | 50.00% | ||||||||||
Number of director nominees designated, sponsor stockholders, equity consideration, 30% to 50% | director_nominee | 2 | ||||||||||
Number of director nominees designated, sponsor stockholders, equity consideration, 15% to 30% | director_nominee | 1 | ||||||||||
Equity consideration, lower threshold for nominee designations | 15.00% | ||||||||||
Minimum number of nominees held to increase number of directors on the board | nominee | 1 | ||||||||||
Maximum directors on the board | director | 12 | ||||||||||
Number of nominees permitted to be appointed to committees, given sponsor stockholders' right to designate two director nominees | director_nominee | 1 | ||||||||||
Upper threshold of equity interests for sponsor stockholders' restrictions | 10.00% | ||||||||||
Aggregate maximum common stock issuable without written consent | 16,843,028 | ||||||||||
Upper threshold of sponsor stockholders' equity consideration to maintain proxy voting | 15.00% | ||||||||||
Holding period for redemption of units and grants | 14 months | ||||||||||
Number of shares used in exchange valuation | 1 | ||||||||||
Holding period prior to transfers of common units | 14 months | ||||||||||
Adjusted maximum aggregate common interests for sponsor stockholders | 17,707,056 | ||||||||||
Maximum tenant ownership allowable for sponsor stockholders to reach excepted holder limit, overall company excluding Market street | 9.90% | ||||||||||
Maximum tenant ownership allowable for sponsor stockholders to reach excepted holder limit, Market street | 5.45% | ||||||||||
Maximum tenant ownership allowable for sponsor stockholders to reach excepted holder limit, minimum ownership percentage after exclusions | 2.00% | ||||||||||
Maximum rental income expected to be produced by tenants allowable for sponsor stockholders to reach excepted holder limit, overall company excluding Market street | 0.50% | ||||||||||
Maximum rental income expected to be produced by tenants allowable for sponsor stockholders to reach excepted holder limit, Market street | 0.50% | ||||||||||
Minimum period between qualified offerings | 120 days | ||||||||||
Qualified offerings, minimum amount | $ | $ 50,000,000 | ||||||||||
Upper threshold for sponsor stockholders' equity consideration at which company cannot consummate significant transactions | 9.80% | ||||||||||
Maximum aggregate value of units for redemption | $ | $ 50,000,000 | ||||||||||
Common Units | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares redeemed during the period (in shares) | 19,000,000 | 10,000,000 | |||||||||
EOP Northern California Portfolio | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Area of real estate property (in square feet) | ft² | 8,200,000 | 8,200,000 | |||||||||
Gross payments to acquire business | $ | $ 1,750,000,000 | ||||||||||
Consideration transferred, common units (in shares) | 63,474,791 | ||||||||||
EOP Northern California Portfolio | Common Units | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Consideration transferred, common units (in shares) | 8,626,311 | ||||||||||
EOP Northern California Portfolio | Office Building | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of real estate properties acquired | property | 26 | 26 | |||||||||
EOP Northern California Portfolio | Development Parcel | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of development projects acquired | project | 2 | 2 | |||||||||
11601 Wilshire Boulevard Office Building | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Area of real estate property (in square feet) | ft² | 500,475 | ||||||||||
Operating leases, term of contract | 8 years | ||||||||||
Total consideration | $ | $ 311,000,000 | ||||||||||
Area of leased property (in square feet) | ft² | 6,638 | ||||||||||
Annual rent cost per year | $ | $ 279,000 | ||||||||||
Blackstone Real Estate Partners | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Area of real estate property (in square feet) | ft² | 42,371 | 40,120 | |||||||||
Operating leases, renewal term | 3 years | ||||||||||
Operating leases, term of contract | 10 years |
Related Party Transactions - Bl
Related Party Transactions - Blackstone Margin Loan Information (Details) - Affiliated Entity - HPP BREP V Holdco A LLC | Dec. 31, 2015USD ($)shares |
Related Party Transaction [Line Items] | |
Loans payable | $ | $ 350,000,000 |
Contingent increase in borrowing capacity | $ | $ 150,000,000 |
Hudson Pacific Properties, Inc. | Securities Pledged as Collateral | |
Related Party Transaction [Line Items] | |
Investment owned, shares | shares | 8,276,945 |
Hudson Pacific Partners L.P. | Securities Pledged as Collateral | |
Related Party Transaction [Line Items] | |
Investment owned, shares | shares | 24,801,618 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($)tenant | |
Unsecured Debt | Revolving Credit Facility | |
Loss Contingencies | |
Letters of credit, amount outstanding | $ | $ 2.6 |
Rentable Square Feet | Customer Concentration Risk | |
Loss Contingencies | |
Concentration risk, percent | 22.40% |
Number of tenants | tenant | 15 |
Rentable Square Feet | Customer Concentration Risk | Media And Entertainment Sector | |
Loss Contingencies | |
Concentration risk, percent | 13.40% |
Rentable Square Feet | Customer Concentration Risk | Technology Sector | |
Loss Contingencies | |
Concentration risk, percent | 28.10% |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 07, 2016USD ($)ft² | Sep. 30, 2016USD ($)ft² | Sep. 30, 2015USD ($)ft² |
Subsequent Event [Line Items] | |||
Area of real estate property (in square feet) | ft² | 820,587 | 483,862 | |
Payments to purchase office building | $ 307,919,000 | $ 1,804,596,000 | |
Subsequent Event | Hill7 Office Development | Secured Debt | |||
Subsequent Event [Line Items] | |||
Face amount | $ 101,000,000 | ||
Debt instrument, stated interest rate (as a percent) | 3.38% | ||
Debt instrument term | 10 years | ||
Debt instrument, extension period | 2 years | ||
Subsequent Event | Hill7 Office Development | |||
Subsequent Event [Line Items] | |||
Area of real estate property (in square feet) | ft² | 285,680 | ||
Payments to purchase office building | $ 179,800,000 |