Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2020 | May 01, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-34789 | |
Entity Registrant Name | Hudson Pacific Properties, Inc. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 27-1430478 | |
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 310 | |
Local Phone Number | 445-5700 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | HPP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 153,295,905 | |
Entity Central Index Key | 0001482512 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Hudson Pacific Partners L.P. | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Entity File Number | 333-202799-01 | |
Entity Registrant Name | Hudson Pacific Properties, L.P. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 80-0579682 | |
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90025 | |
City Area Code | 310 | |
Local Phone Number | 445-5700 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001496264 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Investment in real estate, at cost | $ 7,347,063 | $ 7,269,128 |
Accumulated depreciation and amortization | (939,857) | (898,279) |
Investment in real estate, net | 6,407,206 | 6,370,849 |
Cash and cash equivalents | 392,136 | 46,224 |
Restricted cash | 11,982 | 12,034 |
Accounts receivable, net | 12,940 | 13,007 |
Straight-line rent receivables, net | 209,037 | 195,328 |
Deferred leasing costs and lease intangible assets, net | 275,610 | 285,448 |
U.S. Government securities | 139,475 | 140,749 |
Operating lease right-of-use asset | 268,384 | 269,029 |
Prepaid expenses and other assets, net | 68,101 | 68,974 |
Investment in unconsolidated real estate entity | 60,071 | 64,926 |
TOTAL ASSETS | 7,844,942 | 7,466,568 |
LIABILITIES AND EQUITY | ||
Accounts payable, accrued liabilities and other | 269,282 | 212,673 |
Operating lease liability | 272,421 | 272,701 |
Lease intangible liabilities, net | 28,744 | 31,493 |
Security deposits and prepaid rent | 73,409 | 86,188 |
Total liabilities | 4,078,290 | 3,622,131 |
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 127,083 | 125,260 |
Hudson Pacific Properties, Inc. stockholders’ equity | ||
Common Stock, Value, Issued | 1,533 | 1,546 |
Additional paid-in capital | 3,349,706 | 3,415,808 |
Accumulated other comprehensive loss | (17,804) | (561) |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,333,435 | 3,416,793 |
Hudson Pacific Properties, L.P. partners’ capital | ||
Total equity | 3,629,754 | 3,709,362 |
TOTAL LIABILITIES AND EQUITY | 7,844,942 | 7,466,568 |
Hudson Pacific Partners L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 7,347,063 | 7,269,128 |
Accumulated depreciation and amortization | (939,857) | (898,279) |
Investment in real estate, net | 6,407,206 | 6,370,849 |
Cash and cash equivalents | 392,136 | 46,224 |
Restricted cash | 11,982 | 12,034 |
Accounts receivable, net | 12,940 | 13,007 |
Straight-line rent receivables, net | 209,037 | 195,328 |
Deferred leasing costs and lease intangible assets, net | 275,610 | 285,448 |
U.S. Government securities | 139,475 | 140,749 |
Operating lease right-of-use asset | 268,384 | 269,029 |
Prepaid expenses and other assets, net | 68,101 | 68,974 |
Investment in unconsolidated real estate entity | 60,071 | 64,926 |
TOTAL ASSETS | 7,844,942 | 7,466,568 |
LIABILITIES AND EQUITY | ||
Accounts payable, accrued liabilities and other | 269,282 | 212,673 |
Operating lease liability | 272,421 | 272,701 |
Lease intangible liabilities, net | 28,744 | 31,493 |
Security deposits and prepaid rent | 73,409 | 86,188 |
Total liabilities | 4,078,290 | 3,622,131 |
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 127,083 | 125,260 |
Hudson Pacific Properties, Inc. stockholders’ equity | ||
Accumulated other comprehensive loss | (18,027) | (613) |
Hudson Pacific Properties, L.P. partners’ capital | ||
Limited Partners' Capital Account | 3,377,545 | 3,440,488 |
Total Hudson Pacific Properties, L.P. partners’ capital | 3,359,518 | 3,439,875 |
Non-controlling interest—members in consolidated entities | 270,236 | 269,487 |
Total capital | 3,629,754 | 3,709,362 |
TOTAL LIABILITIES AND EQUITY | 7,844,942 | 7,466,568 |
Non-controlling interest—members in consolidated entities | ||
Hudson Pacific Properties, L.P. partners’ capital | ||
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership | 270,236 | 269,487 |
Non-controlling interest—units in the operating partnership | ||
Hudson Pacific Properties, L.P. partners’ capital | ||
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership | 26,083 | 23,082 |
Total equity | 26,083 | 23,082 |
Unsecured and secured debt, net | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 3,234,093 | 2,817,910 |
Unsecured and secured debt, net | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 3,234,093 | 2,817,910 |
In-substance defeased debt | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 134,205 | 135,030 |
In-substance defeased debt | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 134,205 | 135,030 |
Joint venture partner debt | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | 66,136 | 66,136 |
Joint venture partner debt | Hudson Pacific Partners L.P. | ||
LIABILITIES AND EQUITY | ||
Notes payable, net | $ 66,136 | $ 66,136 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 490,000,000 | 490,000,000 |
Common stock/units, outstanding (in shares) | 153,295,905 | 154,691,052 |
Common Units | Hudson Pacific Partners L.P. | ||
Common Stock: | ||
Common stock/units, outstanding (in shares) | 154,207,763 | 155,602,910,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUES | ||
Total revenues | $ 206,227,000 | $ 197,389,000 |
OPERATING EXPENSES | ||
Operating expenses | 74,510,000 | 71,924,000 |
General and administrative | 18,618,000 | 18,094,000 |
Depreciation and amortization | 73,763,000 | 68,505,000 |
Total operating expenses | 166,891,000 | 158,523,000 |
OTHER (EXPENSE) INCOME | ||
Loss from unconsolidated real estate entity | (236,000) | 0 |
Fee income | 610,000 | 0 |
Interest expense | (26,417,000) | (24,350,000) |
Interest income | 1,025,000 | 1,024,000 |
Transaction-related expenses | (102,000) | (128,000) |
Unrealized loss on non-real estate investment | (581,000) | 0 |
Impairment loss | 0 | (52,201,000) |
Other income (expense) | 314,000 | (106,000) |
Total other (expense) income | (25,387,000) | (75,761,000) |
Net income (loss) | 13,949,000 | (36,895,000) |
Net income attributable to preferred units | (153,000) | (153,000) |
Net income attributable to participating securities | (29,000) | (308,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (3,517,000) | (2,821,000) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 633,000 | 600,000 |
Net (income) loss attributable to non-controlling interest in the operating partnership | (106,000) | 185,000 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 10,777,000 | $ (39,392,000) |
BASIC AND DILUTED PER SHARE AMOUNTS | ||
Net income (loss) attributable to common stockholders - basic (in dollars per share) | $ 0.07 | $ (0.26) |
Net income (loss) attributable to common stockholders - diluted (in dollars per share) | $ 0.07 | $ (0.26) |
Weighted average shares of common stock outstanding—basic (in shares) | 154,432,602 | 154,396,159 |
Weighted average shares of common stock outstanding—diluted | 158,109,912 | 154,396,159 |
Hudson Pacific Partners L.P. | ||
REVENUES | ||
Total revenues | $ 206,227,000 | $ 197,389,000 |
OPERATING EXPENSES | ||
General and administrative | 18,618,000 | 18,094,000 |
Depreciation and amortization | 73,763,000 | 68,505,000 |
Total operating expenses | 166,891,000 | 158,523,000 |
OTHER (EXPENSE) INCOME | ||
Loss from unconsolidated real estate entity | (236,000) | 0 |
Fee income | 610,000 | 0 |
Interest expense | (26,417,000) | (24,350,000) |
Interest income | 1,025,000 | 1,024,000 |
Transaction-related expenses | (102,000) | (128,000) |
Unrealized loss on non-real estate investment | (581,000) | 0 |
Impairment loss | 0 | (52,201,000) |
Other income (expense) | 314,000 | (106,000) |
Total other (expense) income | (25,387,000) | (75,761,000) |
Net income (loss) | 13,949,000 | (36,895,000) |
Net income attributable to preferred units | (153,000) | (153,000) |
Net income attributable to participating securities | (72,000) | (308,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (3,517,000) | (2,821,000) |
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | 633,000 | 600,000 |
Net income (loss) attributable to Hudson Pacific Properties, L.P. | 11,065,000 | (39,116,000) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ 10,840,000 | $ (39,577,000) |
BASIC AND DILUTED PER SHARE AMOUNTS | ||
Net income (loss) attributable to common unitholders —basic (in dollars per share) | $ 0.07 | $ (0.26) |
Net income (loss) attributable to common unitholders —diluted (in dollars per share) | $ 0.07 | $ (0.26) |
Weighted average shares of common units outstanding—basic (in shares) | 155,344,460 | 155,120,144 |
Weighted average shares of common units outstanding—diluted (in shares) | 157,501,233 | 155,120,144 |
Office | ||
REVENUES | ||
Rental | $ 181,113,000 | $ 170,197,000 |
Revenues | 5,314,000 | 5,661,000 |
Total revenues | 186,427,000 | 175,858,000 |
OPERATING EXPENSES | ||
Operating expenses | 63,860,000 | 60,815,000 |
Office | Hudson Pacific Partners L.P. | ||
REVENUES | ||
Rental | 181,113,000 | 170,197,000 |
Revenues | 5,314,000 | 5,661,000 |
Total revenues | 186,427,000 | 175,858,000 |
OPERATING EXPENSES | ||
Operating expenses | 63,860,000 | 60,815,000 |
Studio | ||
REVENUES | ||
Rental | 12,915,000 | 12,394,000 |
Revenues | 6,885,000 | 9,137,000 |
Total revenues | 19,800,000 | 21,531,000 |
OPERATING EXPENSES | ||
Operating expenses | 10,650,000 | 11,109,000 |
Studio | Hudson Pacific Partners L.P. | ||
REVENUES | ||
Rental | 12,915,000 | 12,394,000 |
Revenues | 6,885,000 | 9,137,000 |
Total revenues | 19,800,000 | 21,531,000 |
OPERATING EXPENSES | ||
Operating expenses | $ 10,650,000 | $ 11,109,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net income (loss) | $ 13,949 | $ (36,895) |
Currency translation adjustments | (4,999) | 0 |
Net unrealized losses on derivative instruments: | ||
Unrealized losses | (12,278) | (5,954) |
Reclassification adjustment for realized losses | (137) | (1,910) |
Total net unrealized losses on derivative instruments: | (12,415) | (7,864) |
Total other comprehensive loss | (17,414) | (7,864) |
Comprehensive loss | (3,465) | (44,759) |
Comprehensive income attributable to preferred units | (153) | (153) |
Comprehensive income attributable to participating securities | (29) | (308) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (3,517) | (2,821) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 633 | 600 |
Comprehensive loss attributable to non-controlling interest in the operating partnership | 65 | 222 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | (6,466) | (47,219) |
Hudson Pacific Partners L.P. | ||
Net income (loss) | 13,949 | (36,895) |
Currency translation adjustments | (4,999) | 0 |
Net unrealized losses on derivative instruments: | ||
Unrealized losses | (12,278) | (5,954) |
Reclassification adjustment for realized losses | (137) | (1,910) |
Total net unrealized losses on derivative instruments: | (12,415) | (7,864) |
Total other comprehensive loss | (17,414) | (7,864) |
Comprehensive loss | (3,465) | (44,759) |
Comprehensive income attributable to preferred units | (153) | (153) |
Comprehensive income attributable to participating securities | (72) | (308) |
Comprehensive income attributable to non-controlling interest in consolidated real estate entities | (3,517) | (2,821) |
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | 633 | 600 |
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (6,574) | $ (47,441) |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Non-controlling interest—units in the operating partnership | Non-controlling Interest Members In Consolidated Entities |
Beginning Balance at Dec. 31, 2018 | $ 3,830,130 | $ 1,543 | $ 3,524,502 | $ 0 | $ 17,501 | $ 18,338 | $ 268,246 |
Beginning balance (in shares) at Dec. 31, 2018 | 154,371,538 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions | (4,028) | (4,028) | |||||
Issuance of unrestricted stock | 0 | $ 1 | (1) | ||||
Issuance of unrestricted stock (in shares) | 128,923 | ||||||
Shares withheld to satisfy tax withholding | (3,668) | $ (1) | (3,667) | ||||
Shares withheld to satisfy tax withholding (in shares) | (126,880) | ||||||
Declared dividend | (40,427) | (39,241) | (1,186) | ||||
Amortization of stock-based compensation | 5,179 | 3,714 | 1,465 | ||||
Net (loss) income | (36,448) | (39,084) | (185) | 2,821 | |||
Other comprehensive income (loss) | (7,864) | (7,827) | (37) | ||||
Redemption of common units in the operating partnership | (525) | (525) | |||||
Ending Balance at Mar. 31, 2019 | 3,740,244 | $ 1,543 | 3,485,307 | (41,189) | 9,674 | 17,870 | 267,039 |
Ending balance (in shares) at Mar. 31, 2019 | 154,373,581 | ||||||
Beginning Balance at Dec. 31, 2019 | $ 3,709,362 | $ 1,546 | 3,415,808 | 0 | (561) | 23,082 | 269,487 |
Beginning balance (in shares) at Dec. 31, 2019 | 154,691,052 | 154,691,052 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions | $ (2,768) | (2,768) | |||||
Issuance of unrestricted stock | 0 | $ 2 | (2) | ||||
Issuance of unrestricted stock (in shares) | 155,577 | ||||||
Repurchase of common stock | (35,351) | $ (14) | (35,337) | ||||
Repurchase of common stock (in shares) | (1,414,007) | ||||||
Shares withheld to satisfy tax withholding | (5,501) | $ (1) | (5,500) | ||||
Shares withheld to satisfy tax withholding (in shares) | (136,717) | ||||||
Declared dividend | (38,883) | (27,627) | (10,806) | (450) | |||
Amortization of stock-based compensation | 5,880 | 2,364 | 3,516 | ||||
Net (loss) income | 14,429 | 10,806 | 106 | 3,517 | |||
Other comprehensive income (loss) | (17,414) | (17,243) | (171) | ||||
Ending Balance at Mar. 31, 2020 | $ 3,629,754 | $ 1,533 | $ 3,349,706 | $ 0 | $ (17,804) | $ 26,083 | $ 270,236 |
Ending balance (in shares) at Mar. 31, 2020 | 153,295,905 | 153,295,905 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in shares) | 154,691,052 | |||
Distributions | $ (2,768) | $ (4,028) | ||
Issuance of unrestricted units | 0 | 0 | ||
Units withheld to satisfy tax withholding | (5,501) | (3,668) | ||
Repurchase of common units | (35,351) | |||
Declared distributions | (38,883) | (40,427) | ||
Amortization of unit-based compensation | 5,880 | 5,179 | ||
Net (loss) income | 14,429 | (36,448) | ||
Other comprehensive income (loss) | $ (17,414) | (7,864) | ||
Ending balance (in shares) | 153,295,905 | |||
ASU 2016-02 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of ASUs | $ (2,105) | |||
Hudson Pacific Partners L.P. | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 3,709,362 | 3,830,130 | ||
Distributions | (2,768) | (4,028) | ||
Issuance of unrestricted units | 0 | 0 | ||
Units withheld to satisfy tax withholding | (5,501) | (3,668) | ||
Repurchase of common units | (35,351) | |||
Declared distributions | (38,883) | (40,427) | ||
Amortization of unit-based compensation | 5,880 | 5,179 | ||
Net (loss) income | 14,429 | (36,448) | ||
Other comprehensive income (loss) | (17,414) | (7,864) | ||
Redemption of common units in the operating partnership | (525) | |||
Ending balance | 3,629,754 | 3,740,244 | ||
Hudson Pacific Partners L.P. | ASU 2016-02 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of ASUs | $ (2,105) | |||
Hudson Pacific Partners L.P. | Total Partners’ Capital | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | 3,439,875 | 3,561,884 | ||
Units withheld to satisfy tax withholding | (5,501) | (3,668) | ||
Repurchase of common units | (35,351) | |||
Declared distributions | (38,883) | (40,427) | ||
Amortization of unit-based compensation | 5,880 | 5,179 | ||
Net (loss) income | 10,912 | (39,269) | ||
Other comprehensive income (loss) | (17,414) | (7,864) | ||
Redemption of common units in the operating partnership | (525) | |||
Ending balance | 3,359,518 | 3,473,205 | ||
Hudson Pacific Partners L.P. | Total Partners’ Capital | ASU 2016-02 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of ASUs | (2,105) | |||
Hudson Pacific Partners L.P. | Non-controlling Interest Members In Consolidated Entities | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | 269,487 | 268,246 | ||
Distributions | (2,768) | (4,028) | ||
Net (loss) income | 3,517 | 2,821 | ||
Ending balance | 270,236 | 267,039 | ||
Hudson Pacific Partners L.P. | Common Units | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 3,440,488 | $ 3,544,319 | ||
Beginning balance (in shares) | 155,602,910 | 154,940,583 | ||
Issuance of unrestricted stock (in shares) | 155,577 | 298,727 | ||
Units withheld to satisfy tax withholding | $ (5,501) | $ (3,668) | ||
Units withheld to satisfy tax withholding (in shares) | (136,717) | (126,880) | ||
Repurchase of common units | $ (35,351) | |||
Repurchase of common units (in shares) | (1,414,007) | |||
Declared distributions | $ (38,883) | $ (40,427) | ||
Amortization of unit-based compensation | 5,880 | 5,179 | ||
Net (loss) income | 10,912 | (39,269) | ||
Redemption of common units in the operating partnership | $ (525) | |||
Redemption of common units (in shares) | (18,076) | |||
Ending balance | $ 3,377,545 | $ 3,463,504 | ||
Ending balance (in shares) | 154,207,763 | 155,094,354 | ||
Hudson Pacific Partners L.P. | Common Units | ASU 2016-02 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of ASUs | $ (2,105) | |||
Hudson Pacific Partners L.P. | Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ (613) | $ 17,565 | ||
Other comprehensive income (loss) | (17,414) | (7,864) | ||
Ending balance | $ (18,027) | $ 9,701 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ 13,949,000 | $ (36,895,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,763,000 | 68,505,000 |
Non-cash portion of interest expense | 1,245,000 | 1,591,000 |
Amortization of stock-based/unit-based compensation | 4,895,000 | 5,150,000 |
Loss from unconsolidated real estate entity | 236,000 | 0 |
Unrealized loss on non-real estate investment | 581,000 | 0 |
Straight-line rents | (13,709,000) | (16,635,000) |
Straight-line rent expenses | 365,000 | 366,000 |
Amortization of above- and below-market leases, net | (2,544,000) | (4,179,000) |
Amortization of above- and below-market ground leases, net | 588,000 | 615,000 |
Amortization of lease incentive costs | 472,000 | 326,000 |
Impairment loss | 0 | 52,201,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | 67,000 | (4,263,000) |
Deferred leasing costs and lease intangibles | (4,139,000) | (13,675,000) |
Prepaid expenses and other assets | (1,054,000) | 2,771,000 |
Accounts payable, accrued liabilities and other | 28,162,000 | 33,004,000 |
Security deposits and prepaid rent | (12,779,000) | 564,000 |
Net cash provided by operating activities | 90,098,000 | 89,446,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment in real estate | (79,058,000) | (94,615,000) |
Maturities of U.S. Government securities | 1,284,000 | 1,932,000 |
Distributions from unconsolidated entities | 24,000 | 0 |
Contributions to unconsolidated entities | (351,000) | 0 |
Deposits for property acquisitions | 0 | (35,584,000) |
Net cash used in investing activities | (78,101,000) | (128,267,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from unsecured and secured debt | 415,040,000 | 430,001,000 |
Payments of unsecured and secured debt | (148,000) | (335,145,000) |
Payments of in-substance defeased debt | (825,000) | (806,000) |
Repurchase of common stock/units | (35,351,000) | 0 |
Redemption of operating partnership units | 0 | (525,000) |
Dividends paid to common stock and unitholders | (38,883,000) | (40,427,000) |
Dividends paid to preferred unitholders | (153,000) | (153,000) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 2,456,000 | 2,075,000 |
Distribution to non-controlling member in consolidated real estate entities | (2,768,000) | (4,028,000) |
Payments to satisfy tax withholding | (5,501,000) | (3,668,000) |
Payment of loan costs, net loan premium paid | (4,000) | (10,623,000) |
Net cash provided by financing activities | 333,863,000 | 36,701,000 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 345,860,000 | (2,120,000) |
Cash and cash equivalents and restricted cash—beginning of period | 58,258,000 | 68,191,000 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | 404,118,000 | 66,071,000 |
Hudson Pacific Partners L.P. | ||
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | 13,949,000 | (36,895,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 73,763,000 | 68,505,000 |
Non-cash portion of interest expense | 1,245,000 | 1,591,000 |
Amortization of stock-based/unit-based compensation | 4,895,000 | 5,150,000 |
Loss from unconsolidated real estate entity | 236,000 | 0 |
Unrealized loss on non-real estate investment | 581,000 | 0 |
Straight-line rents | (13,709,000) | (16,635,000) |
Straight-line rent expenses | 365,000 | 366,000 |
Amortization of above- and below-market leases, net | (2,544,000) | (4,179,000) |
Amortization of above- and below-market ground leases, net | 588,000 | 615,000 |
Amortization of lease incentive costs | 472,000 | 326,000 |
Impairment loss | 0 | 52,201,000 |
Change in operating assets and liabilities: | ||
Accounts receivable | 67,000 | (4,263,000) |
Deferred leasing costs and lease intangibles | (4,139,000) | (13,675,000) |
Prepaid expenses and other assets | (1,054,000) | 2,771,000 |
Accounts payable, accrued liabilities and other | 28,162,000 | 33,004,000 |
Security deposits and prepaid rent | (12,779,000) | 564,000 |
Net cash provided by operating activities | 90,098,000 | 89,446,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Additions to investment in real estate | (79,058,000) | (94,615,000) |
Maturities of U.S. Government securities | 1,284,000 | 1,932,000 |
Distributions from unconsolidated entities | 24,000 | 0 |
Contributions to unconsolidated entities | (351,000) | 0 |
Deposits for property acquisitions | 0 | (35,584,000) |
Net cash used in investing activities | (78,101,000) | (128,267,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from unsecured and secured debt | 415,040,000 | 430,001,000 |
Payments of unsecured and secured debt | (148,000) | (335,145,000) |
Payments of in-substance defeased debt | (825,000) | (806,000) |
Repurchase of common stock/units | (35,351,000) | 0 |
Redemption of operating partnership units | 0 | (525,000) |
Dividends paid to common stock and unitholders | (38,883,000) | (40,427,000) |
Dividends paid to preferred unitholders | (153,000) | (153,000) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 2,456,000 | 2,075,000 |
Distribution to non-controlling member in consolidated real estate entities | (2,768,000) | (4,028,000) |
Payments to satisfy tax withholding | (5,501,000) | (3,668,000) |
Payment of loan costs, net loan premium paid | (4,000) | (10,623,000) |
Net cash provided by financing activities | 333,863,000 | 36,701,000 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 345,860,000 | (2,120,000) |
Cash and cash equivalents and restricted cash—beginning of period | 58,258,000 | 68,191,000 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ 404,118,000 | $ 66,071,000 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. The Company’s portfolio consists of properties located throughout Northern and Southern California, the Pacific Northwest and Western Canada. The following table summarizes the Company’s portfolio as of March 31, 2020: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 13,374,382 Studios 3 1,224,403 Land 6 2,231,376 Total consolidated portfolio 60 16,830,161 Unconsolidated portfolio (1) Office 1 1,477,142 Land 1 450,000 Total unconsolidated portfolio 2 1,927,142 TOTAL (2) 62 18,757,303 _________________ 1. The Company purchased, pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone”), the Bentall Centre property located in Vancouver, Canada. The Company owns 20% of this joint venture. The square footage shown above represents 100% of the property. For further detail regarding the Bentall Centre property, see Note 4. 2. Includes redevelopment and development properties. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. References to number of properties and square feet are not covered by the auditor’s review procedures. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2019 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto. Principles of Consolidation The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of March 31, 2020, the Company has determined its operating partnership and five joint ventures met the definition of a VIE. Four of the joint ventures are consolidated and one of the joint ventures is unconsolidated. Consolidated Joint Ventures As of March 31, 2020, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % As of March 31, 2020 and December 31, 2019, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. Unconsolidated Joint Ventures As of March 31, 2020, the Company has determined it is not the primary beneficiary of one joint venture. Due to its significant influence over the unconsolidated entity, the Company accounts for the entity using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. On June 5, 2019, the Company purchased, pursuant to a co-ownership agreement with Blackstone, the Bentall Centre property located in Vancouver, Canada. The joint venture property-owning entity is structured as a tenancy in common under applicable tax laws. The Company owns 20% of this joint venture and serves as the operating partner. The Company’s net equity investment of this unconsolidated entity is reflected within investment in unconsolidated real estate entity on the Consolidated Balance Sheets. The Company’s share of net income or loss from the entity is included within loss from unconsolidated real estate entity on the Consolidated Statements of Operations. Refer to Note 4 for details. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Lease Accounting In February 2016, the FASB issued guidance codified in ASC 842, Leases (“ASC 842”), which amends the guidance in former ASC 840, Leases (“ASC 840”). The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Company adopted ASC 842 on January 1, 2019 using the modified retrospective transition approach that must be applied for leases that exist or are entered into after January 1, 2019. ASC 842 requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground lease assets and are reflected in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and liabilities was 5.7%. ROU assets also include any lease payments made and exclude lease incentives. Many of the Company’s lessee agreements include options to extend the lease, which we do not include in its minimum lease terms unless the option is reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term, as of March 31, 2020, was 32 years. Lessor Accounting The presentation of revenues on the Consolidated Statement of Operations reflects a single lease component that combines rental, tenant recoveries, and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues includes parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues and other revenues have been accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Three Months Ended March 31, 2020 2019 Ancillary revenues $ 5,799 $ 8,116 Other revenues $ 5,955 $ 6,407 Studio-related tenant recoveries $ 445 $ 275 The following table summarizes the Company’s receivables that are accounted for under ASC 606: March 31, 2020 December 31, 2019 Ancillary revenues $ 1,128 $ 1,652 Other revenues $ 1,970 $ 2,417 Studio-related tenant recoveries $ 8 $ 26 In regards to sale of real estate, the Company applies certain recognition and measurement principles in accordance with ASC 606. The Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract includes ongoing involvement with the sold property by the seller, the seller must evaluate each promised good or service under the contract to determine whether it represents a performance obligation, constitutes a guarantee or prevents the transfer of control. The timing and pattern of revenue recognition might change as it relates to gains on sale of real estate if the sale includes continued involvement that represents a separate performance obligation. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which changed the impairment model for most financial instruments by requiring companies to recognize an allowance for expected losses, rather than incurred losses. ASC 326 applies to the Company’s receivables related to service revenues and parking revenue that is not associated with lease agreements. The accounting standard was adopted on January 1, 2020 using modified retrospective transition approach. The adoption did not have a material impact on the Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the quarter ended March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. On April 10, 2020, the FASB issued a Staff Q&A related to the application of the lease guidance in ASC 842 for the accounting impact of lease concessions related to the COVID-19 pandemic. The FASB staff believes that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842 as though enforceable rights and obligations for those concessions existed. As a result of this election, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in ASC 842, as long as the concessions do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. To date, the impact of lease concessions granted has not had a material effect on the Company’s consolidated financial statements. The Company will continue to evaluate the impact of accounting for lease concessions and the impact of this Q&A. |
Investment in Real Estate
Investment in Real Estate | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of: March 31, 2020 December 31, 2019 Land $ 1,313,412 $ 1,313,412 Building and improvements 5,227,848 5,189,342 Tenant improvements 641,568 631,459 Furniture and fixtures 11,133 10,693 Property under development 153,102 124,222 INVESTMENT IN REAL ESTATE, AT COST $ 7,347,063 $ 7,269,128 Acquisitions The Company had no acquisitions during the three months ended March 31, 2020. Dispositions The Company had no dispositions during the three months ended March 31, 2020. Held for Sale As of March 31, 2020 and December 31, 2019, the Company had no properties that met the criteria to be classified as held for sale. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value, based on Level 1 or Level 2 inputs, less estimated costs to sell. |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Entity | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Real Estate Entity | Investment in Unconsolidated Real Estate Entity On June 5, 2019, the Company purchased, through a joint venture with Blackstone, the Bentall Centre office properties and retail complex in Vancouver, Canada. The Company owns 20% of this joint venture and serves as the operating partner. The unconsolidated real estate entity’s functional currency is the local currency. The Company has exposure to risks related to foreign currency fluctuations. The assets and liabilities are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. Income statement accounts of our foreign subsidiaries are translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive income as a separate component of total equity and are excluded from net income. The maximum exposure related to this unconsolidated joint venture is limited to our investment and $89.6 million of debt which the Company has guaranteed. The summarized balance sheets of the Company’s unconsolidated real estate entity represent the combined entities for our Bentall Centre properties as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 ASSETS Investment in real estate, net $ 758,013 $ 794,321 Other assets 24,299 51,597 TOTAL ASSETS 782,312 845,918 LIABILITIES Secured debt, net 443,650 480,127 Other liabilities 41,487 42,672 TOTAL LIABILITIES 485,137 522,799 Company’s capital (1) 59,435 64,624 Partner’s capital 237,740 258,495 TOTAL CAPITAL 297,175 323,119 TOTAL LIABILITIES AND CAPITAL $ 782,312 $ 845,918 __________________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in loss from unconsolidated real estate entity on the Consolidated Statements of Operations. The summarized statement of operations of the Company’s unconsolidated real estate entity represent the combined entities for our Bentall Centre properties for the three months ended March 31, 2020: Three Months Ended March 31, 2020 TOTAL REVENUES $ 25,795 TOTAL EXPENSES 26,949 NET LOSS $ (1,154) |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 3 Months Ended |
Mar. 31, 2020 | |
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: March 31, 2020 December 31, 2019 Deferred leasing costs and in-place lease intangibles $ 336,376 $ 359,215 Accumulated amortization (123,023) (136,816) Deferred leasing costs and in-place lease intangibles, net 213,353 222,399 Below-market ground leases 72,916 72,916 Accumulated amortization (12,034) (11,436) Below-market ground leases, net 60,882 61,480 Above-market leases 4,559 8,015 Accumulated amortization (3,184) (6,446) Above-market leases, net 1,375 1,569 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 275,610 $ 285,448 Below-market leases $ 78,996 $ 87,064 Accumulated amortization (51,117) (56,447) Below-market leases, net 27,879 30,617 Above-market ground leases 1,095 1,095 Accumulated amortization (230) (219) Above-market ground leases, net 865 876 LEASE INTANGIBLE LIABILITIES, NET $ 28,744 $ 31,493 The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended March 31, 2020 2019 Deferred leasing costs and in-place lease intangibles (1) $ (10,735) $ (11,882) Below-market ground leases (2) $ (599) $ (626) Above-market leases (3) $ (194) $ (310) Below-market leases (3) $ 2,738 $ 4,489 Above-market ground leases (2) $ 11 $ 11 __________________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in rental revenues in the Consolidated Statements of Operations. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Receivables | Receivables The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts related to service revenues are discussed in the Company’s 2019 Annual Report on Form 10-K. Accounts Receivable As of March 31, 2020, accounts receivable was $12.9 million and there was no allowance for doubtful accounts. As of December 31, 2019, accounts receivable was $13.0 million and there was no allowance for doubtful accounts. Straight-Line Rent Receivable As of March 31, 2020, straight-line rent receivable was $213.0 million and there was a $4.0 million allowance for doubtful accounts. As of December 31, 2019, straight-line rent receivable was $195.3 million and there was no allowance for doubtful accounts. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets, net | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets, net | Prepaid Expenses and Other Assets, net The following table summarizes the Company’s prepaid expenses and other assets, net as of: March 31, 2020 December 31, 2019 Derivative assets $ — $ 479 Goodwill 8,754 8,754 Non-real estate investments 7,618 5,545 Deposits for future acquisitions 20,500 22,405 Deferred financing costs 2,927 3,246 Prepaid insurance 107 3,463 Prepaid property tax 1,035 2,070 Other 27,160 23,012 PREPAID EXPENSES AND OTHER ASSETS, NET $ 68,101 $ 68,974 Goodwill No goodwill impairment indicators have been identified during the three months ended March 31, 2020. Non-Real Estate Investments The Company holds investments in an entity that does not report NAV. The Company marks this investment to fair value based on Level 2 inputs, whenever fair value is readily available or observable. Changes in fair value are included in the unrealized loss on non-real estate investment line item on the Consolidated Statements of Operations. To date, the Company has recognized an unrealized gain of $928.0 thousand due to observable changes in fair value. The Company did not recognize any changes to fair value for the three months ended March 31, 2020 and 2019. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information with respect to the Company’s outstanding indebtedness: March 31, 2020 December 31, 2019 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ 490,000 $ 75,000 LIBOR + 1.05% to 1.50% 3/13/2022 (4) Term loan B (2)(5) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan D (2)(6) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes (7) 500,000 500,000 4.65% 4/1/2029 3.25% Registered senior notes (8) 400,000 400,000 3.25% 1/15/2030 Total unsecured debt 2,890,000 2,475,000 Secured debt Met Park North (9) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (10) 26,165 26,312 5.32% 3/11/2022 One Westside and 10850 Pico (11) 5,686 5,646 LIBOR + 1.70% 12/18/2023 (4) Revolving Sunset Bronson Studios/ICON/CUE facility (12) 5,001 5,001 LIBOR + 1.35% 3/1/2024 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (13) 101,000 101,000 3.38% 11/6/2028 Total secured debt 370,352 370,459 Total unsecured and secured debt 3,260,352 2,845,459 Unamortized deferred financing costs and loan discounts/premiums (14) (26,259) (27,549) TOTAL UNSECURED AND SECURED DEBT, NET $ 3,234,093 $ 2,817,910 IN-SUBSTANCE DEFEASED DEBT (15) $ 134,205 $ 135,030 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (16) $ 66,136 $ 66,136 4.50% 10/9/2028 _________________ 1. Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2020, which may be different than the interest rates as of December 31, 2019 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2020, no such election had been made. 3. The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 9 for details. 6. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 9 for details. 7. On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million. 8. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at a discount at 99.268% of par value, with a coupon of 3.25%. 9. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 9 for details. 10. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 11. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 12. The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. 13. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 14. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 7 for details. 15. The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is separately presented on the balance sheet. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 16. This amount relates to debt due to Allianz U.S. Private REIT LP (“Allianz”), the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two Current Year Activity During the three months ended March 31, 2020, the outstanding borrowings on the unsecured revolving credit facility increased by $415.0 million, net of draws. The Company increased its borrowings under the unsecured revolving credit facility during such period as precautionary measure to increase its cash position and preserve financial flexibility in light of the challenging business environment related to the COVID-19 pandemic. The Company generally uses the unsecured revolving credit facility to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes. Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. Loan agreements include events of default that the Company believes are usual for loans and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans. The following table provides information regarding the Company’s minimum future principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of March 31, 2020: Year Unsecured and Secured Debt In-substance Defeased Debt Joint Venture Partner Debt Remaining 2020 $ 64,947 $ 2,498 $ — 2021 632 3,494 — 2022 990,085 128,213 — 2023 165,686 — — 2024 5,001 — — Thereafter 2,034,001 — 66,136 TOTAL $ 3,260,352 $ 134,205 $ 66,136 Unsecured Debt Term Loan and Credit Facility On March 13, 2018, the operating partnership entered into a third amended and restated credit agreement (the “Amended and Restated Credit Agreement”) with various financial institutions. The Amended and Restated Credit Agreement amends and restates and replaces (i) the operating partnership’s existing second amended and restated credit agreement, entered into on March 31, 2015, which governed its $400.0 million unsecured revolving credit facility, $300.0 million unsecured 5-year term loan facility and $350.0 million unsecured 7-year term loan facility, and (ii) the operating partnership’s Term Loan Credit Agreement, entered into on November 17, 2015, which governed its $75.0 million unsecured 5-year term loan facility and $125.0 million unsecured 7-year term loan facility. The Amended and Restated Credit Agreement provides for (i) the increase of the operating partnership’s unsecured revolving credit facility to $600.0 million and the extension of the term to March 13, 2022 and (ii) term loans in amount and tenor equal to the term loans outstanding under the previous agreements ($300.0 million term loan A maturing April 1, 2020, $350.0 million term loan B maturing April 1, 2022, $75.0 million term loan C maturing November 17, 2020 and $125.0 million term loan D maturing November 17, 2022). The $75.0 million term loan was repaid with proceeds from the Company’s 4.65% registered senior notes on February 27, 2019. The $300.0 million term loan was repaid with proceeds from the Company’s 3.25% registered senior notes on October 3, 2019. The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: March 31, 2020 December 31, 2019 Outstanding borrowings $ 490,000 $ 75,000 Remaining borrowing capacity 110,000 525,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 1. The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2020, no such election had been made. 2. The maturity date may be extended once for an additional one Debt Covenants The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants. The following table summarizes existing covenants and their covenant levels related to the unsecured revolving credit facility, term loans, and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 36.2% Unsecured indebtedness to unencumbered asset value ≤ 60% 44.2% Adjusted EBITDA to fixed charges ≥ 1.5x 3.5x Secured indebtedness to total asset value ≤ 45% 5.3% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.3x The following table summarizes existing covenants and their covenant levels related to the registered senior notes: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 43.1% Total unencumbered assets to unsecured debt ≥ 150% 214.1% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.9x Secured debt to total assets ≤ 40% 5.9% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of March 31, 2020. The operating partnership was in compliance with its financial covenants as of March 31, 2020. Repayment Guarantees Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. The Company guaranteed the operating partnership’s unsecured debt. Interest Expense The following table represents a reconciliation from gross interest expense to the interest expense line item in the Consolidated Statements of Operations: Three Months Ended March 31, 2020 2019 Gross interest expense (1) $ 30,287 $ 27,465 Capitalized interest (5,115) (4,706) Amortization of deferred financing costs and loan discounts/premiums 1,245 1,591 INTEREST EXPENSE $ 26,417 $ 24,350 _________________ 1. Includes interest on the Company’s debt and hedging activities and extinguishment costs related to paydowns in the term loans. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. The Company had four interest rate swaps with aggregate notional amounts of $539.5 million as of March 31, 2020 and December 31, 2019. These derivatives were designated as effective cash flow hedges for accounting purposes. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of March 31, 2020 and December 31, 2019: Interest Rate Range (1) Fair Value (Liabilities) Assets Underlying Debt Instrument Number of Hedges Notional Amount Effective Date Maturity Date Low High March 31, 2020 December 31, 2019 Met Park North 1 $ 64,500 August 2013 August 2020 3.71% 3.71% $ (350) $ (195) Term loan B 2 350,000 April 2015 April 2022 2.96% 3.46% (9,774) (1,596) Term loan D 1 125,000 June 2016 November 2022 2.63% 3.13% (3,391) 479 TOTAL 4 $ 539,500 $ (13,515) $ (1,312) _____________ 1. The rate is based on the fixed rate from the interest rate swap and the spread based on the operating partnership’s leverage ratio. |
U.S. Government Securities
U.S. Government Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
U.S. Government Securities | U.S. Government Securities The Company has U.S. Government securities of $139.5 million and $140.7 million as of March 31, 2020 and December 31, 2019, respectively. The One Westside and 10850 Pico properties acquisition in 2018 included the assumption of debt that was, in-substance, defeased through the purchase of U.S. Government-backed securities. The securities are investments held to maturity and are carried at amortized cost on the Consolidated Balance Sheets. As of March 31, 2020, the Company had $7.9 million of gross unrealized gains and no gross unrealized losses. The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date March 31, 2020: Carrying Value Fair Value Due in 1 year $ 4,945 $ 5,028 Due in 1 to 5 years 134,530 142,389 TOTAL $ 139,475 $ 147,417 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. Provided it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate-level income tax on the earnings distributed currently to its stockholders. The Company has elected, together with certain of its subsidiaries, to treat each such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes. In general, the Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market, Hill7 and Ferry Building properties, REITs) for federal income tax purposes. In the case of the Bentall Centre property, the Company owns its interest in the property through a non-U.S entity treated as a TRS for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2020, the Company has not established a liability for uncertain tax positions. The Company and certain of its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRSs are no longer subject to tax examinations by tax authorities for years prior to 2015. The Company has assessed its tax positions for all open years, which include 2015 to 2019, and concluded that there are no material uncertainties to be recognized. |
Future Minimum Rents and Lease
Future Minimum Rents and Lease Payments | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2020: Year Ended Non-Cancellable Subject to Early Termination Options Total (1) Remaining 2020 $ 438,692 $ 8,242 $ 446,934 2021 557,376 27,296 584,672 2022 509,360 39,143 548,503 2023 469,228 41,467 510,695 2024 419,819 20,984 440,803 Thereafter 1,689,436 153,212 1,842,648 TOTAL $ 4,083,911 $ 290,344 $ 4,374,255 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of March 31, 2020: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. Contingent rental expense is recorded in the period in which the contingent event becomes probable. The following table summarizes rental expense for ground leases as follows: Three Months Ended March 31, 2020 2019 Contingent rental expense $ 2,157 $ 2,514 Minimum rental expense $ 4,991 $ 4,603 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2020: Year Lease Payments (1) Remaining 2020 $ 13,876 2021 18,622 2022 18,663 2023 18,438 2024 18,392 Thereafter 534,353 Total ground lease payments 622,344 Less: interest portion (349,923) PRESENT VALUE OF LEASE LIABILITY $ 272,421 _________________ 1. In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2020. |
Future Minimum Rents and Lease Payments | Future Minimum Rents and Lease Payments The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2020: Year Ended Non-Cancellable Subject to Early Termination Options Total (1) Remaining 2020 $ 438,692 $ 8,242 $ 446,934 2021 557,376 27,296 584,672 2022 509,360 39,143 548,503 2023 469,228 41,467 510,695 2024 419,819 20,984 440,803 Thereafter 1,689,436 153,212 1,842,648 TOTAL $ 4,083,911 $ 290,344 $ 4,374,255 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of March 31, 2020: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. Contingent rental expense is recorded in the period in which the contingent event becomes probable. The following table summarizes rental expense for ground leases as follows: Three Months Ended March 31, 2020 2019 Contingent rental expense $ 2,157 $ 2,514 Minimum rental expense $ 4,991 $ 4,603 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2020: Year Lease Payments (1) Remaining 2020 $ 13,876 2021 18,622 2022 18,663 2023 18,438 2024 18,392 Thereafter 534,353 Total ground lease payments 622,344 Less: interest portion (349,923) PRESENT VALUE OF LEASE LIABILITY $ 272,421 _________________ |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that require inputs that are both significant to the fair value measurement and unobservable. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ — $ — $ — $ — $ 479 $ — $ 479 Derivative liabilities (2) $ — $ (13,515) $ — $ (13,515) $ — $ (1,791) $ — $ (1,791) Non-real estate investments (1) $ — $ 7,618 $ — $ 7,618 $ — $ 5,545 $ — $ 5,545 ___________ 1. Included in the prepaid expenses and other assets, net line item on the Consolidated Balance Sheets. 2. Included in the accounts payable, accrued liabilities and other line item on the Consolidated Balance Sheets. Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair value for investment in U.S. Government securities are estimated based on Level 1 inputs. Fair values for debt are estimated based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value ASSETS U.S. Government securities $ 139,475 $ 147,417 $ 140,749 $ 144,589 LIABILITIES Unsecured debt (1) $ 2,890,000 $ 2,829,991 $ 2,475,000 $ 2,540,606 Secured debt (1) $ 370,352 $ 366,535 $ 370,459 $ 366,476 In-substance defeased debt $ 134,205 $ 147,417 $ 135,030 $ 134,936 Joint venture partner debt $ 66,136 $ 69,029 $ 66,136 $ 68,557 _________________ |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has various stock compensation arrangements, which are more fully described in the 2019 Annual Report on Form 10-K. Under the 2010 Incentive Plan, as amended (“2010 Plan”), the Company’s board of directors (“Board”) has the ability to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee Board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. The Board awards time-based restricted shares or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the fourth quarter and vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer. The Compensation Committee adopted a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under the 2010 Plan through 2019. With respect to OPP Plan awards granted through 2016, to the extent an award is earned following the completion of a three three two two Beginning in 2020, the Compensation Committee adopted an annual Hudson Pacific Properties, Inc. Performance Stock Unit Plan (“PSU Plan”). Effective January 1, 2020, the Compensation Committee awarded to certain employees performance units in the operating partnership (“2020 PSU Plan”). The 2020 PSU Plan grant consists of two portions. A portion of each performance unit award, the Relative TSR Performance Unit, is eligible to vest based on the achievement of the Company’s total shareholder return compared to the total shareholder return of the SNL U.S. REIT Office Index over a three one will vest over three years. The number of Operational Performance Units that become eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of absolute total shareholder return goals over the three The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: Three Months Ended March 31, 2020 2019 Expensed stock compensation (1) $ 4,895 $ 5,150 Capitalized stock compensation (2) 985 29 TOTAL STOCK COMPENSATION (3) $ 5,880 $ 5,179 _________________ 1. Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. 2. Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders: Three Months Ended March 31, 2020 2019 Numerator: Basic net income (loss) available to common stockholders $ 10,777 $ (39,392) Effect of dilutive instruments 108 — Diluted net income (loss) available to common stockholders $ 10,885 $ (39,392) Denominator: Basic weighted average common shares outstanding 154,432,602 154,396,159 Effect of dilutive instruments (1) 3,677,310 — DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 158,109,912 154,396,159 Basic earnings (loss) per common share $ 0.07 $ (0.26) Diluted earnings (loss) per common share $ 0.07 $ (0.26) ________________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The operating partnership calculates basic earnings per unit by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. The operating partnership calculates diluted earnings per unit by dividing the diluted net income available to common unitholders for the period by the weighted average number of common units and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income available to common unitholders: Three Months Ended March 31, 2020 2019 Numerator: Basic and diluted net income (loss) available to common unitholders $ 10,840 $ (39,577) Denominator: Basic weighted average common units outstanding 155,344,460 155,120,144 Effect of dilutive instruments (1) 2,156,773 — DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 157,501,233 155,120,144 Basic earnings (loss) per common unit $ 0.07 $ (0.26) Diluted earnings (loss) per common unit $ 0.07 $ (0.26) ________________ |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 3 Months Ended |
Mar. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest Redeemable Preferred Units of the Operating Partnership As of March 31, 2020 and December 31, 2019, there were 392,598 series A preferred units of partnership interest in the operating partnership, or series A preferred units, which are not owned by the Company. These series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock. Redeemable Non-Controlling Interest in Consolidated Real Estate Entities On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC (“HPP-MAC JV”). On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The Company has a 75% interest in the joint venture that owns the One Westside and 10850 Pico properties. The Company has a put right, after a specified time, to sell its interest at fair market value. Macerich has a put right, after a specified time, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building property. The Company has a 55% interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. Allianz has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Three Months Ended March 31, 2020 Series A Redeemable Preferred Units Consolidated Entities BEGINNING OF PERIOD $ 9,815 $ 125,260 Contributions — 2,456 Declared dividend (153) — Net income (loss) 153 (633) END OF PERIOD $ 9,815 $ 127,083 |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Equity | Equity The table below presents the activity related to Hudson Pacific Properties Inc.’s accumulated other comprehensive (loss) income (“OCI”): Derivative Instruments Currency Translation Adjustments Total Equity BALANCE AT DECEMBER 31, 2019 $ (2,391) $ 1,830 $ (561) Unrealized losses recognized in OCI (12,157) (4,950) (17,107) Reclassification adjustment for realized gains (1) (136) — (136) Net change in OCI (12,293) (4,950) (17,243) BALANCE AT MARCH 31, 2020 $ (14,684) $ (3,120) $ (17,804) _____________ 1. The gains and losses on the Company’s derivative instruments are reported in the interest expense line item on the Consolidated Statements of Operations. Interest expense was $26.4 million for the three months ended March 31, 2020. The table below presents the activity related to Hudson Pacific Properties L.P.’s OCI: Derivative Instruments Currency Translation Adjustments Total Capital BALANCE AT DECEMBER 31, 2019 $ (2,458) $ 1,845 $ (613) Unrealized losses recognized in OCI (12,278) (4,999) (17,277) Reclassification adjustment for realized gains (1) (137) — (137) Net change in OCI (12,415) (4,999) (17,414) BALANCE AT MARCH 31, 2020 $ (14,873) $ (3,154) $ (18,027) _____________ 1. The gains and losses on the operating partnership’s derivative instruments are reported in the interest expense line item on the Consolidated Statements of Operations. Interest expense was $26.4 million for the three months ended March 31, 2020. Non-Controlling Interests Common Units in the Operating Partnership Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash at a per unit value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, Hudson Pacific Properties, Inc. may, at its election, issue shares of its common stock in exchange for such common units on a one-for-one basis. Performance Units in the Operating Partnership Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders (on a per unit basis) with the capital accounts of common unitholders. Once vested and having achieved parity with common unitholders, performance units generally are convertible into common units in the operating partnership on a one-for-one basis. Current Year Activity The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units as of: March 31, 2020 December 31, 2019 Company-owned common units in the operating partnership 153,295,905 154,691,052 Company’s ownership interest percentage 99.4 % 99.4 % Non-controlling units in the operating partnership (1) 911,858 991,858 Non-controlling ownership interest percentage 0.6 % 0.6 % _________________ 1. Represents units held by certain of the Company’s executive officers, directors and outside investors. As of March 31, 2020, this amount represents both common units and performance units of 550,969 and 360,889, respectively. As of December 31, 2019, this amount represents both common units and performance units of 550,969 and 360,889 , respectively . Common Stock Activity The Company has not completed any common stock offerings in 2020. The Company’s at-the-market, or “ATM”, program permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during the three months ended March 31, 2020. A cumulative total of $20.1 million has been sold as of March 31, 2020. Share Repurchase Program The Company is authorized to repurchase up to a total $250.0 million shares of its common stock under its share repurchase program. During the three months ended March 31, 2020, the Company repurchased $35.4 million shares of its common stock. Since commencement of the program, a cumulative total of $85.4 million has been repurchased. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors. Dividends The Board declared dividends on a quarterly basis and the Company paid the dividends during the quarters in which the dividends were declared. The following table summarizes dividends declared and paid for the periods presented: Three Months Ended March 31, 2020 2019 Common stock $ 0.25 $ 0.25 Common units $ 0.25 $ 0.25 Series A preferred units $ 0.3906 $ 0.3906 Performance units $ 0.25 $ 0.25 Payment date March 30, 2020 March 28, 2019 Record date March 20, 2020 March 18, 2019 Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties and (ii) studio properties. The Company evaluates performance based upon net operating income of the combined properties in each segment. General and administrative expenses and interest expense are not included in segment profit as its internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources, therefore, depreciation and amortization expense is not allocated among segments. The table below presents the operating activity of the Company’s reportable segments: Three Months Ended March 31, 2020 2019 Office segment Office revenues $ 186,427 $ 175,858 Office expenses (63,860) (60,815) Office segment profit 122,567 115,043 Studio segment Studio revenues 19,800 21,531 Studio expenses (10,650) (11,109) Studio segment profit 9,150 10,422 TOTAL SEGMENT PROFIT $ 131,717 $ 125,465 Segment revenues $ 206,227 $ 197,389 Segment expenses (74,510) (71,924) TOTAL SEGMENT PROFIT $ 131,717 $ 125,465 The table below is a reconciliation of the total profit from all segments to net income: Three Months Ended March 31, 2020 2020 2019 NET INCOME (LOSS) $ 13,949 $ (36,895) General and administrative 18,618 18,094 Depreciation and amortization 73,763 68,505 Loss from unconsolidated real estate entity 236 — Fee income (610) — Interest expense 26,417 24,350 Interest income (1,025) (1,024) Transaction-related expenses 102 128 Unrealized loss on non-real estate investment 581 — Impairment loss — 52,201 Other (income) expense (314) 106 TOTAL PROFIT FROM ALL SEGMENTS $ 131,717 $ 125,465 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain executive officers, effective January 1, 2020, that provide for various severance and change in control benefits and other terms and conditions of employment. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Letters of Credit |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Three Months Ended March 31, 2020 2019 Cash paid for interest, net of capitalized interest $ 38,126 $ 13,543 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (142,919) $ (813) Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Three Months Ended March 31, 2020 2019 Cash paid for interest, net of capitalized interest $ 38,126 $ 13,543 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (142,919) $ (813) Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company is closely monitoring the impact of the COVID-19 pandemic on all aspects of its business and across its portfolio, including how it will impact its tenants. While the Company did not experience significant disruptions during the three months ended March 31, 2020 from the COVID-19 pandemic, it is unable to predict the impact the COVID-19 pandemic will have on its financial condition, results of operations and cash flows due to numerous uncertainties. In April, as is likely the case with all landlords, the Company received certain rent relief requests, predominantly in the form of rent deferral requests, as a result of COVID-19. The Company is carefully evaluating each tenant rent relief request on an individual basis, considering a number of factors. Not all tenant requests will ultimately result in modification agreements, and (to the extent practical) the Company is not forgoing its contractual rights under its lease agreements. As of May 1, 2020, the Company has executed deferrals in the amount of $2.2 million and an additional $0.4 million in abatements. Another $1.3 million remains in discussion for either payment or deferral. Some of our tenants have subsequently begun to avail themselves of the various federal and state relief funds, such as the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. References to number of properties and square feet are not covered by the auditor’s review procedures. |
Principles of Consolidation | Principles of Consolidation The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of March 31, 2020, the Company has determined its operating partnership and five joint ventures met the definition of a VIE. Four of the joint ventures are consolidated and one of the joint ventures is unconsolidated. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. |
Lessee Accounting | Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground lease assets and are reflected in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. |
Lessor Accounting | Lessor AccountingThe presentation of revenues on the Consolidated Statement of Operations reflects a single lease component that combines rental, tenant recoveries, and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). |
Revenue Recognition | Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate The Company recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues includes parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues and other revenues have been accounted for under ASC 606. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Three Months Ended March 31, 2020 2019 Ancillary revenues $ 5,799 $ 8,116 Other revenues $ 5,955 $ 6,407 Studio-related tenant recoveries $ 445 $ 275 The following table summarizes the Company’s receivables that are accounted for under ASC 606: March 31, 2020 December 31, 2019 Ancillary revenues $ 1,128 $ 1,652 Other revenues $ 1,970 $ 2,417 Studio-related tenant recoveries $ 8 $ 26 In regards to sale of real estate, the Company applies certain recognition and measurement principles in accordance with ASC 606. The Company is required to evaluate the sales of real estate based on transfer of control. If a real estate sale contract includes ongoing involvement with the sold property by the seller, the seller must evaluate each promised good or service under the contract to determine whether it represents a performance obligation, constitutes a guarantee or prevents the transfer of control. The timing and pattern of revenue recognition might change as it relates to gains on sale of real estate if the sale includes continued involvement that represents a separate performance obligation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (Topic 326), which changed the impairment model for most financial instruments by requiring companies to recognize an allowance for expected losses, rather than incurred losses. ASC 326 applies to the Company’s receivables related to service revenues and parking revenue that is not associated with lease agreements. The accounting standard was adopted on January 1, 2020 using modified retrospective transition approach. The adoption did not have a material impact on the Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. During the quarter ended March 31, 2020, the Company has elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients preserves the presentation of derivatives consistent with past presentation. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. On April 10, 2020, the FASB issued a Staff Q&A related to the application of the lease guidance in ASC 842 for the accounting impact of lease concessions related to the COVID-19 pandemic. The FASB staff believes that it would be acceptable for entities to make an election to account for lease concessions related to the effects of the COVID-19 pandemic consistent with how those concessions would be accounted for under ASC 842 as though enforceable rights and obligations for those concessions existed. As a result of this election, for concessions related to the effects of the COVID-19 pandemic, an entity will not have to analyze each contract to determine whether enforceable rights and obligations for concessions exist in the contract and can elect to apply or not apply the lease modification guidance in ASC 842, as long as the concessions do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. To date, the impact of lease concessions granted has not had a material effect on the Company’s consolidated financial statements. The Company will continue to evaluate the impact of accounting for lease concessions and the impact of this Q&A. |
Organization (Tables)
Organization (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Portfolio of properties | The following table summarizes the Company’s portfolio as of March 31, 2020: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 13,374,382 Studios 3 1,224,403 Land 6 2,231,376 Total consolidated portfolio 60 16,830,161 Unconsolidated portfolio (1) Office 1 1,477,142 Land 1 450,000 Total unconsolidated portfolio 2 1,927,142 TOTAL (2) 62 18,757,303 _________________ 1. The Company purchased, pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone”), the Bentall Centre property located in Vancouver, Canada. The Company owns 20% of this joint venture. The square footage shown above represents 100% of the property. For further detail regarding the Bentall Centre property, see Note 4. 2. Includes redevelopment and development properties. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Variable Interest Entity [Line Items] | |
Schedule of sources of revenues | The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate |
Receivables subject to new accounting standards | The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Three Months Ended March 31, 2020 2019 Ancillary revenues $ 5,799 $ 8,116 Other revenues $ 5,955 $ 6,407 Studio-related tenant recoveries $ 445 $ 275 The following table summarizes the Company’s receivables that are accounted for under ASC 606: March 31, 2020 December 31, 2019 Ancillary revenues $ 1,128 $ 1,652 Other revenues $ 1,970 $ 2,417 Studio-related tenant recoveries $ 8 $ 26 |
Hudson Pacific Partners L.P. | |
Variable Interest Entity [Line Items] | |
Schedule of consolidated entities | As of March 31, 2020, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate [Abstract] | |
Summary of investment in real estate | The following table summarizes the Company’s investment in real estate, at cost as of: March 31, 2020 December 31, 2019 Land $ 1,313,412 $ 1,313,412 Building and improvements 5,227,848 5,189,342 Tenant improvements 641,568 631,459 Furniture and fixtures 11,133 10,693 Property under development 153,102 124,222 INVESTMENT IN REAL ESTATE, AT COST $ 7,347,063 $ 7,269,128 |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Entity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The summarized balance sheets of the Company’s unconsolidated real estate entity represent the combined entities for our Bentall Centre properties as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 ASSETS Investment in real estate, net $ 758,013 $ 794,321 Other assets 24,299 51,597 TOTAL ASSETS 782,312 845,918 LIABILITIES Secured debt, net 443,650 480,127 Other liabilities 41,487 42,672 TOTAL LIABILITIES 485,137 522,799 Company’s capital (1) 59,435 64,624 Partner’s capital 237,740 258,495 TOTAL CAPITAL 297,175 323,119 TOTAL LIABILITIES AND CAPITAL $ 782,312 $ 845,918 __________________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in loss from unconsolidated real estate entity on the Consolidated Statements of Operations. The summarized statement of operations of the Company’s unconsolidated real estate entity represent the combined entities for our Bentall Centre properties for the three months ended March 31, 2020: Three Months Ended March 31, 2020 TOTAL REVENUES $ 25,795 TOTAL EXPENSES 26,949 NET LOSS $ (1,154) |
Deferred Leasing Costs and Le_2
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of deferred leasing cost and lease intangibles | The following summarizes the Company’s deferred leasing costs and lease intangibles as of: March 31, 2020 December 31, 2019 Deferred leasing costs and in-place lease intangibles $ 336,376 $ 359,215 Accumulated amortization (123,023) (136,816) Deferred leasing costs and in-place lease intangibles, net 213,353 222,399 Below-market ground leases 72,916 72,916 Accumulated amortization (12,034) (11,436) Below-market ground leases, net 60,882 61,480 Above-market leases 4,559 8,015 Accumulated amortization (3,184) (6,446) Above-market leases, net 1,375 1,569 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 275,610 $ 285,448 Below-market leases $ 78,996 $ 87,064 Accumulated amortization (51,117) (56,447) Below-market leases, net 27,879 30,617 Above-market ground leases 1,095 1,095 Accumulated amortization (230) (219) Above-market ground leases, net 865 876 LEASE INTANGIBLE LIABILITIES, NET $ 28,744 $ 31,493 |
Schedule of amortization during period | The Company recognized the following amortization related to deferred leasing costs and lease intangibles: Three Months Ended March 31, 2020 2019 Deferred leasing costs and in-place lease intangibles (1) $ (10,735) $ (11,882) Below-market ground leases (2) $ (599) $ (626) Above-market leases (3) $ (194) $ (310) Below-market leases (3) $ 2,738 $ 4,489 Above-market ground leases (2) $ 11 $ 11 __________________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in rental revenues in the Consolidated Statements of Operations. |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Summary of prepaid expenses and other assets, net | The following table summarizes the Company’s prepaid expenses and other assets, net as of: March 31, 2020 December 31, 2019 Derivative assets $ — $ 479 Goodwill 8,754 8,754 Non-real estate investments 7,618 5,545 Deposits for future acquisitions 20,500 22,405 Deferred financing costs 2,927 3,246 Prepaid insurance 107 3,463 Prepaid property tax 1,035 2,070 Other 27,160 23,012 PREPAID EXPENSES AND OTHER ASSETS, NET $ 68,101 $ 68,974 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table sets forth information with respect to the Company’s outstanding indebtedness: March 31, 2020 December 31, 2019 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ 490,000 $ 75,000 LIBOR + 1.05% to 1.50% 3/13/2022 (4) Term loan B (2)(5) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan D (2)(6) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes (7) 500,000 500,000 4.65% 4/1/2029 3.25% Registered senior notes (8) 400,000 400,000 3.25% 1/15/2030 Total unsecured debt 2,890,000 2,475,000 Secured debt Met Park North (9) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (10) 26,165 26,312 5.32% 3/11/2022 One Westside and 10850 Pico (11) 5,686 5,646 LIBOR + 1.70% 12/18/2023 (4) Revolving Sunset Bronson Studios/ICON/CUE facility (12) 5,001 5,001 LIBOR + 1.35% 3/1/2024 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (13) 101,000 101,000 3.38% 11/6/2028 Total secured debt 370,352 370,459 Total unsecured and secured debt 3,260,352 2,845,459 Unamortized deferred financing costs and loan discounts/premiums (14) (26,259) (27,549) TOTAL UNSECURED AND SECURED DEBT, NET $ 3,234,093 $ 2,817,910 IN-SUBSTANCE DEFEASED DEBT (15) $ 134,205 $ 135,030 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (16) $ 66,136 $ 66,136 4.50% 10/9/2028 _________________ 1. Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2020, which may be different than the interest rates as of December 31, 2019 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2020, no such election had been made. 3. The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 9 for details. 6. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 9 for details. 7. On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million. 8. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at a discount at 99.268% of par value, with a coupon of 3.25%. 9. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 9 for details. 10. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 11. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 12. The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. 13. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 14. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 7 for details. 15. The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is separately presented on the balance sheet. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. two |
Schedule of maturities of long-term debt | The following table provides information regarding the Company’s minimum future principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of March 31, 2020: Year Unsecured and Secured Debt In-substance Defeased Debt Joint Venture Partner Debt Remaining 2020 $ 64,947 $ 2,498 $ — 2021 632 3,494 — 2022 990,085 128,213 — 2023 165,686 — — 2024 5,001 — — Thereafter 2,034,001 — 66,136 TOTAL $ 3,260,352 $ 134,205 $ 66,136 |
Summary of balance and key terms of the unsecured revolving credit facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: March 31, 2020 December 31, 2019 Outstanding borrowings $ 490,000 $ 75,000 Remaining borrowing capacity 110,000 525,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 1. The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2020, no such election had been made. 2. The maturity date may be extended once for an additional one |
Summary of existing covenants and their covenant levels | The following table summarizes existing covenants and their covenant levels related to the unsecured revolving credit facility, term loans, and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 36.2% Unsecured indebtedness to unencumbered asset value ≤ 60% 44.2% Adjusted EBITDA to fixed charges ≥ 1.5x 3.5x Secured indebtedness to total asset value ≤ 45% 5.3% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.3x The following table summarizes existing covenants and their covenant levels related to the registered senior notes: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 43.1% Total unencumbered assets to unsecured debt ≥ 150% 214.1% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.9x Secured debt to total assets ≤ 40% 5.9% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25% Senior Notes, 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of March 31, 2020. |
Schedule of interest expense | The following table represents a reconciliation from gross interest expense to the interest expense line item in the Consolidated Statements of Operations: Three Months Ended March 31, 2020 2019 Gross interest expense (1) $ 30,287 $ 27,465 Capitalized interest (5,115) (4,706) Amortization of deferred financing costs and loan discounts/premiums 1,245 1,591 INTEREST EXPENSE $ 26,417 $ 24,350 _________________ 1. Includes interest on the Company’s debt and hedging activities and extinguishment costs related to paydowns in the term loans. |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The following table summarizes the Company’s derivative instruments as of March 31, 2020 and December 31, 2019: Interest Rate Range (1) Fair Value (Liabilities) Assets Underlying Debt Instrument Number of Hedges Notional Amount Effective Date Maturity Date Low High March 31, 2020 December 31, 2019 Met Park North 1 $ 64,500 August 2013 August 2020 3.71% 3.71% $ (350) $ (195) Term loan B 2 350,000 April 2015 April 2022 2.96% 3.46% (9,774) (1,596) Term loan D 1 125,000 June 2016 November 2022 2.63% 3.13% (3,391) 479 TOTAL 4 $ 539,500 $ (13,515) $ (1,312) _____________ |
U.S. Government Securities (Tab
U.S. Government Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the carrying value and the fair value of securities | The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date March 31, 2020: Carrying Value Fair Value Due in 1 year $ 4,945 $ 5,028 Due in 1 to 5 years 134,530 142,389 TOTAL $ 139,475 $ 147,417 |
Future Minimum Base Rents and L
Future Minimum Base Rents and Lease Payments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Schedule of future minimum base rents | The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2020: Year Ended Non-Cancellable Subject to Early Termination Options Total (1) Remaining 2020 $ 438,692 $ 8,242 $ 446,934 2021 557,376 27,296 584,672 2022 509,360 39,143 548,503 2023 469,228 41,467 510,695 2024 419,819 20,984 440,803 Thereafter 1,689,436 153,212 1,842,648 TOTAL $ 4,083,911 $ 290,344 $ 4,374,255 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. |
Summary of ground lease terms | The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of March 31, 2020: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event can rent be less than the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments add 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. |
Rental expense for ground leases | The following table summarizes rental expense for ground leases as follows: Three Months Ended March 31, 2020 2019 Contingent rental expense $ 2,157 $ 2,514 Minimum rental expense $ 4,991 $ 4,603 |
Future minimum lease payments for ground leases | The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2020: Year Lease Payments (1) Remaining 2020 $ 13,876 2021 18,622 2022 18,663 2023 18,438 2024 18,392 Thereafter 534,353 Total ground lease payments 622,344 Less: interest portion (349,923) PRESENT VALUE OF LEASE LIABILITY $ 272,421 _________________ 1. In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2020. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of estimated fair value of derivatives measured by level of fair value hierarchy | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ — $ — $ — $ — $ 479 $ — $ 479 Derivative liabilities (2) $ — $ (13,515) $ — $ (13,515) $ — $ (1,791) $ — $ (1,791) Non-real estate investments (1) $ — $ 7,618 $ — $ 7,618 $ — $ 5,545 $ — $ 5,545 ___________ 1. Included in the prepaid expenses and other assets, net line item on the Consolidated Balance Sheets. 2. Included in the accounts payable, accrued liabilities and other line item on the Consolidated Balance Sheets. |
Schedule of carrying value and fair value of notes payable | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: March 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value ASSETS U.S. Government securities $ 139,475 $ 147,417 $ 140,749 $ 144,589 LIABILITIES Unsecured debt (1) $ 2,890,000 $ 2,829,991 $ 2,475,000 $ 2,540,606 Secured debt (1) $ 370,352 $ 366,535 $ 370,459 $ 366,476 In-substance defeased debt $ 134,205 $ 147,417 $ 135,030 $ 134,936 Joint venture partner debt $ 66,136 $ 69,029 $ 66,136 $ 68,557 _________________ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of classification and amount recognized for stock-based compensation | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: Three Months Ended March 31, 2020 2019 Expensed stock compensation (1) $ 4,895 $ 5,150 Capitalized stock compensation (2) 985 29 TOTAL STOCK COMPENSATION (3) $ 5,880 $ 5,179 _________________ 1. Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. 2. Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of earnings per share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders: Three Months Ended March 31, 2020 2019 Numerator: Basic net income (loss) available to common stockholders $ 10,777 $ (39,392) Effect of dilutive instruments 108 — Diluted net income (loss) available to common stockholders $ 10,885 $ (39,392) Denominator: Basic weighted average common shares outstanding 154,432,602 154,396,159 Effect of dilutive instruments (1) 3,677,310 — DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 158,109,912 154,396,159 Basic earnings (loss) per common share $ 0.07 $ (0.26) Diluted earnings (loss) per common share $ 0.07 $ (0.26) ________________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. |
Hudson Pacific Partners L.P. | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |
Schedule of earnings per share | The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit for net income available to common unitholders: Three Months Ended March 31, 2020 2019 Numerator: Basic and diluted net income (loss) available to common unitholders $ 10,840 $ (39,577) Denominator: Basic weighted average common units outstanding 155,344,460 155,120,144 Effect of dilutive instruments (1) 2,156,773 — DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 157,501,233 155,120,144 Basic earnings (loss) per common unit $ 0.07 $ (0.26) Diluted earnings (loss) per common unit $ 0.07 $ (0.26) ________________ |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Redeemable Non-controlling Interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Three Months Ended March 31, 2020 Series A Redeemable Preferred Units Consolidated Entities BEGINNING OF PERIOD $ 9,815 $ 125,260 Contributions — 2,456 Declared dividend (153) — Net income (loss) 153 (633) END OF PERIOD $ 9,815 $ 127,083 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Comprehensive income (loss) | The table below presents the activity related to Hudson Pacific Properties Inc.’s accumulated other comprehensive (loss) income (“OCI”): Derivative Instruments Currency Translation Adjustments Total Equity BALANCE AT DECEMBER 31, 2019 $ (2,391) $ 1,830 $ (561) Unrealized losses recognized in OCI (12,157) (4,950) (17,107) Reclassification adjustment for realized gains (1) (136) — (136) Net change in OCI (12,293) (4,950) (17,243) BALANCE AT MARCH 31, 2020 $ (14,684) $ (3,120) $ (17,804) _____________ 1. The gains and losses on the Company’s derivative instruments are reported in the interest expense line item on the Consolidated Statements of Operations. Interest expense was $26.4 million for the three months ended March 31, 2020. The table below presents the activity related to Hudson Pacific Properties L.P.’s OCI: Derivative Instruments Currency Translation Adjustments Total Capital BALANCE AT DECEMBER 31, 2019 $ (2,458) $ 1,845 $ (613) Unrealized losses recognized in OCI (12,278) (4,999) (17,277) Reclassification adjustment for realized gains (1) (137) — (137) Net change in OCI (12,415) (4,999) (17,414) BALANCE AT MARCH 31, 2020 $ (14,873) $ (3,154) $ (18,027) _____________ 1. The gains and losses on the operating partnership’s derivative instruments are reported in the interest expense line item on the Consolidated Statements of Operations. Interest expense was $26.4 million for the three months ended March 31, 2020. |
Schedule of ownership interest in operating partnership | The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units as of: March 31, 2020 December 31, 2019 Company-owned common units in the operating partnership 153,295,905 154,691,052 Company’s ownership interest percentage 99.4 % 99.4 % Non-controlling units in the operating partnership (1) 911,858 991,858 Non-controlling ownership interest percentage 0.6 % 0.6 % _________________ 1. Represents units held by certain of the Company’s executive officers, directors and outside investors. As of March 31, 2020, this amount represents both common units and performance units of 550,969 and 360,889, respectively. As of December 31, 2019, this amount represents both common units and performance units of 550,969 and 360,889 , respectively . |
Schedule of dividends payable | The following table summarizes dividends declared and paid for the periods presented: Three Months Ended March 31, 2020 2019 Common stock $ 0.25 $ 0.25 Common units $ 0.25 $ 0.25 Series A preferred units $ 0.3906 $ 0.3906 Performance units $ 0.25 $ 0.25 Payment date March 30, 2020 March 28, 2019 Record date March 20, 2020 March 18, 2019 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Operating Activity for Reporting Units | The table below presents the operating activity of the Company’s reportable segments: Three Months Ended March 31, 2020 2019 Office segment Office revenues $ 186,427 $ 175,858 Office expenses (63,860) (60,815) Office segment profit 122,567 115,043 Studio segment Studio revenues 19,800 21,531 Studio expenses (10,650) (11,109) Studio segment profit 9,150 10,422 TOTAL SEGMENT PROFIT $ 131,717 $ 125,465 Segment revenues $ 206,227 $ 197,389 Segment expenses (74,510) (71,924) TOTAL SEGMENT PROFIT $ 131,717 $ 125,465 The table below is a reconciliation of the total profit from all segments to net income: Three Months Ended March 31, 2020 2020 2019 NET INCOME (LOSS) $ 13,949 $ (36,895) General and administrative 18,618 18,094 Depreciation and amortization 73,763 68,505 Loss from unconsolidated real estate entity 236 — Fee income (610) — Interest expense 26,417 24,350 Interest income (1,025) (1,024) Transaction-related expenses 102 128 Unrealized loss on non-real estate investment 581 — Impairment loss — 52,201 Other (income) expense (314) 106 TOTAL PROFIT FROM ALL SEGMENTS $ 131,717 $ 125,465 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash flow, supplemental information | Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Three Months Ended March 31, 2020 2019 Cash paid for interest, net of capitalized interest $ 38,126 $ 13,543 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (142,919) $ (813) Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Three Months Ended March 31, 2020 2019 Cash paid for interest, net of capitalized interest $ 38,126 $ 13,543 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (142,919) $ (813) |
Schedule of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 |
Restrictions on cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, L.P.: Three Months Ended March 31, 2020 2019 BEGINNING OF PERIOD Cash and cash equivalents $ 46,224 $ 53,740 Restricted cash 12,034 14,451 TOTAL $ 58,258 $ 68,191 END OF PERIOD Cash and cash equivalents $ 392,136 $ 52,445 Restricted cash 11,982 13,626 TOTAL $ 404,118 $ 66,071 |
Organization (Details)
Organization (Details) | Mar. 31, 2020ft²property |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 62 |
Area of real estate property (in square feet) | ft² | 18,757,303 |
Joint Venture, Blackstone Property Partners | |
Real Estate Properties [Line Items] | |
Ownership interest | 20.00% |
Consolidated portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 60 |
Area of real estate property (in square feet) | ft² | 16,830,161 |
Consolidated portfolio | Office | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 51 |
Area of real estate property (in square feet) | ft² | 13,374,382 |
Consolidated portfolio | Studios | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 3 |
Area of real estate property (in square feet) | ft² | 1,224,403 |
Consolidated portfolio | Land | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 6 |
Area of real estate property (in square feet) | ft² | 2,231,376 |
Unconsolidated portfolio | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 2 |
Area of real estate property (in square feet) | ft² | 1,927,142 |
Unconsolidated portfolio | Office | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 1 |
Area of real estate property (in square feet) | ft² | 1,477,142 |
Unconsolidated portfolio | Land | |
Real Estate Properties [Line Items] | |
Number of real estate properties (in properties) | property | 1 |
Area of real estate property (in square feet) | ft² | 450,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020USD ($)jointVenture | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Variable Interest Entity [Line Items] | |||
Weighted average incremental borrowing rate | 5.70% | ||
Weighted average remaining lease term | 32 years | ||
Ancillary revenues | |||
Variable Interest Entity [Line Items] | |||
Revenues | $ 5,799 | $ 8,116 | |
Receivables | 1,128 | $ 1,652 | |
Other revenues | |||
Variable Interest Entity [Line Items] | |||
Revenues | 5,955 | 6,407 | |
Receivables | 1,970 | 2,417 | |
Studio-related tenant recoveries | |||
Variable Interest Entity [Line Items] | |||
Revenues | 445 | $ 275 | |
Receivables | $ 8 | $ 26 | |
Joint Venture, Blackstone Property Partners | |||
Variable Interest Entity [Line Items] | |||
Ownership interest | 20.00% | ||
VIE, Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Number of joint ventures meeting VIE definition | jointVenture | 5 | ||
Number of joint ventures consolidated | jointVenture | 4 | ||
VIE, Primary Beneficiary | 1455 Market | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership Interest | 55.00% | ||
VIE, Primary Beneficiary | Hill7 | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership Interest | 55.00% | ||
VIE, Primary Beneficiary | One Westside and 10850 Pico | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership Interest | 75.00% | ||
VIE, Primary Beneficiary | Ferry Building Property | |||
Variable Interest Entity [Line Items] | |||
VIE, ownership Interest | 55.00% | ||
VIE, Not Primary Beneficiary | |||
Variable Interest Entity [Line Items] | |||
Number of joint ventures not consolidated | jointVenture | 1 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Real Estate [Abstract] | |||
Land | $ 1,313,412,000 | $ 1,313,412,000 | |
Building and improvements | 5,227,848,000 | 5,189,342,000 | |
Tenant improvements | 641,568,000 | 631,459,000 | |
Furniture and fixtures | 11,133,000 | 10,693,000 | |
Property under development | 153,102,000 | 124,222,000 | |
Investment in real estate, at cost | 7,347,063,000 | $ 7,269,128,000 | |
Impairment loss | $ 0 | $ 52,201,000 |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Entity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | ||
Investment in real estate, net | $ 758,013 | $ 794,321 |
Other assets | 24,299 | 51,597 |
TOTAL ASSETS | 782,312 | 845,918 |
LIABILITIES | ||
Secured debt, net | 443,650 | 480,127 |
Other liabilities | 41,487 | 42,672 |
TOTAL LIABILITIES | 485,137 | 522,799 |
Company's capital | 59,435 | 64,624 |
Partner’s capital | 237,740 | 258,495 |
TOTAL CAPITAL | 297,175 | 323,119 |
TOTAL LIABILITIES AND CAPITAL | 782,312 | $ 845,918 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | ||
TOTAL REVENUES | 25,795 | |
TOTAL EXPENSES | 26,949 | |
NET LOSS | $ (1,154) | |
Joint Venture, Blackstone Property Partners | ||
Schedule of Equity Method Investments [Line Items] | ||
Ownership interest | 20.00% | |
Joint Venture, Blackstone Property Partners | Financial guarantee | ||
Schedule of Equity Method Investments [Line Items] | ||
Maximum exposure for guarantee | $ 89,600 |
Deferred Leasing Costs and Le_3
Deferred Leasing Costs and Lease Intangibles, net - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Deferred leasing costs and lease intangibles, net | $ 275,610 | $ 285,448 |
Below and above market ground leases, net | 28,744 | 31,493 |
Below-market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Below and above market ground leases | 78,996 | 87,064 |
Below and above market ground leases, accumulated amortization | (51,117) | (56,447) |
Below and above market ground leases, net | 27,879 | 30,617 |
Above-market ground leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Below and above market ground leases | 1,095 | 1,095 |
Below and above market ground leases, accumulated amortization | (230) | (219) |
Below and above market ground leases, net | 865 | 876 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred leasing costs and lease intangibles | 336,376 | 359,215 |
Accumulated amortization | (123,023) | (136,816) |
Deferred leasing costs and lease intangibles, net | 213,353 | 222,399 |
Below-market ground leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred leasing costs and lease intangibles | 72,916 | 72,916 |
Accumulated amortization | (12,034) | (11,436) |
Deferred leasing costs and lease intangibles, net | 60,882 | 61,480 |
Above-market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Deferred leasing costs and lease intangibles | 4,559 | 8,015 |
Accumulated amortization | (3,184) | (6,446) |
Deferred leasing costs and lease intangibles, net | $ 1,375 | $ 1,569 |
Deferred Leasing Costs and Le_4
Deferred Leasing Costs and Lease Intangibles, net - Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | $ 2,544 | $ 4,179 |
Below-market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | 2,738 | 4,489 |
Above-market ground leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | 11 | 11 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | (10,735) | (11,882) |
Below-market ground leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | (599) | (626) |
Above-market leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of above- and below-market leases, net | $ (194) | $ (310) |
Receivables (Details)
Receivables (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 12,900,000 | $ 13,000,000 |
Accounts receivable, allowance for doubtful accounts | 0 | 0 |
Straight-line rent receivables, gross | 213,000,000 | 195,300,000 |
Straight-line rent receivable, allowance for doubtful accounts | $ 4,000,000 | $ 0 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets, net (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Derivative assets | $ 0 | $ 479,000 | |
Goodwill | 8,754,000 | 8,754,000 | |
Non-real estate investments | 7,618,000 | 5,545,000 | |
Deposits for future acquisitions | 20,500,000 | 22,405,000 | |
Deferred financing costs | 2,927,000 | 3,246,000 | |
Prepaid insurance | 107,000 | 3,463,000 | |
Prepaid property tax | 1,035,000 | 2,070,000 | |
Other | 27,160,000 | 23,012,000 | |
Prepaid expenses and other assets, net | 68,101,000 | 68,974,000 | |
Investment Holdings [Line Items] | |||
Unrealized gain (loss) on non-real estate investment | (581,000) | $ 0 | |
Entity that does not report NAV | |||
Investment Holdings [Line Items] | |||
Cumulative unrealized gains | 928,000 | ||
Unrealized gain (loss) on non-real estate investment | 0 | $ 0 | |
Real Estate Technology Venture Capital Fund | |||
Investment Holdings [Line Items] | |||
Commitment of funding | 20,000,000 | ||
Contributions to date | $ 5,500,000 | ||
Remaining to be contributed | $ 14,500,000 |
Debt - Summary of Outstanding I
Debt - Summary of Outstanding Indebtedness (Details) | Oct. 03, 2019USD ($) | Jun. 14, 2019USD ($) | Feb. 27, 2019USD ($) | Mar. 31, 2020USD ($)derivativeinstrumentextensionOption | Dec. 31, 2019USD ($)derivative | Mar. 13, 2018USD ($) |
Debt Instrument [Line Items] | ||||||
Duration used in interest rate calculation (in days) | 360 days | |||||
One Westside and 10850 Pico | VIE, Primary Beneficiary | ||||||
Debt Instrument [Line Items] | ||||||
VIE, ownership Interest | 75.00% | |||||
Hill7 | ||||||
Debt Instrument [Line Items] | ||||||
Ownership interest | 55.00% | |||||
Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative instruments held | derivative | 4 | 4 | ||||
Term Loan B | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative instruments held | instrument | 2 | |||||
Term Loan B | Minimum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 2.96% | |||||
Term Loan B | Maximum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 3.46% | |||||
Term Loan D | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative instruments held | instrument | 1 | |||||
Term Loan D | Minimum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 2.63% | |||||
Term Loan D | Maximum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 3.13% | |||||
Met Park North | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 3.71% | |||||
Met Park North | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative instruments held | instrument | 1 | |||||
Met Park North | Minimum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 3.71% | |||||
Met Park North | Maximum | Interest Rate Swap | Designated as Hedging Instrument | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted interest rate | 3.71% | |||||
10950 Washington | ||||||
Debt Instrument [Line Items] | ||||||
Service payment term (in years) | 30 years | |||||
Unsecured and secured debt, net | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 3,260,352,000 | $ 2,845,459,000 | ||||
Unamortized deferred financing costs and loan discounts/premium | (26,259,000) | (27,549,000) | ||||
TOTAL UNSECURED AND SECURED DEBT, NET | 3,234,093,000 | 2,817,910,000 | ||||
Unsecured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | 2,890,000,000 | 2,475,000,000 | ||||
Unsecured debt | Term Loan B | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 350,000,000 | 350,000,000 | ||||
Unsecured debt | Term Loan B | Interest Rate Swap | ||||||
Debt Instrument [Line Items] | ||||||
Number of derivative instruments held | derivative | 2 | |||||
Unsecured debt | Term Loan B | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.20% | |||||
Unsecured debt | Term Loan B | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Unsecured debt | Term Loan D | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 125,000,000 | 125,000,000 | ||||
Unsecured debt | Term Loan D | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.20% | |||||
Unsecured debt | Term Loan D | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Unsecured debt | Series A Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 110,000,000 | 110,000,000 | ||||
Interest rate | 4.34% | |||||
Unsecured debt | Series B Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 259,000,000 | 259,000,000 | ||||
Interest rate | 4.69% | |||||
Unsecured debt | Series C Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 56,000,000 | 56,000,000 | ||||
Interest rate | 4.79% | |||||
Unsecured debt | Series D Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 150,000,000 | 150,000,000 | ||||
Interest rate | 3.98% | |||||
Unsecured debt | Series E Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 50,000,000 | 50,000,000 | ||||
Interest rate | 3.66% | |||||
Unsecured debt | 3.95% Registered Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 400,000,000 | 400,000,000 | ||||
Interest rate | 3.95% | |||||
Unsecured debt | 4.65% Registered Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 150,000,000 | $ 350,000,000 | $ 500,000,000 | 500,000,000 | ||
Interest rate | 4.65% | |||||
Percentage of par at debt issuance | 104.544% | 98.663% | ||||
Unsecured debt | 3.25% Registered Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 400,000,000 | $ 400,000,000 | 400,000,000 | |||
Interest rate | 3.25% | |||||
Percentage of par at debt issuance | 99.268% | |||||
Unsecured debt | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 490,000,000 | 75,000,000 | ||||
Total borrowing capacity | $ 600,000,000 | 600,000,000 | $ 400,000,000 | |||
Debt instrument, term (in years) | 1 year | |||||
Unsecured debt | Revolving Credit Facility | Revolving Credit Facility | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.05% | |||||
Unsecured debt | Revolving Credit Facility | Revolving Credit Facility | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 370,352,000 | 370,459,000 | ||||
Secured debt | Met Park North | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 64,500,000 | 64,500,000 | ||||
Secured debt | Met Park North | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.55% | |||||
Secured debt | 10950 Washington | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 26,165,000 | 26,312,000 | ||||
Interest rate | 5.32% | |||||
Secured debt | One Westside and 10850 Pico | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 5,686,000 | 5,646,000 | ||||
Total borrowing capacity | $ 414,600,000 | |||||
Secured debt | One Westside and 10850 Pico | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.70% | |||||
Secured debt | Revolving Sunset Bronson Studios/ICON/CUE facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 5,001,000 | 5,001,000 | ||||
Total borrowing capacity | $ 235,000,000 | |||||
Secured debt | Revolving Sunset Bronson Studios/ICON/CUE facility | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.35% | |||||
Secured debt | Element LA | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 168,000,000 | 168,000,000 | ||||
Interest rate | 4.59% | |||||
Secured debt | Hill7 | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 101,000,000 | 101,000,000 | ||||
Interest rate | 3.38% | |||||
In-substance defeased debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 134,205,000 | 135,030,000 | ||||
TOTAL UNSECURED AND SECURED DEBT, NET | $ 134,205,000 | 135,030,000 | ||||
Interest rate | 4.47% | |||||
Service payment term (in years) | 10 years | |||||
Joint venture partner debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt | $ 66,136,000 | 66,136,000 | ||||
TOTAL UNSECURED AND SECURED DEBT, NET | $ 66,136,000 | $ 66,136,000 | ||||
Interest rate | 4.50% | |||||
Number of extension options | extensionOption | 2 | |||||
Extension term | 2 years |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Oct. 03, 2019 | Feb. 27, 2019 | Mar. 13, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Unsecured debt | 5-Year Term Loan due April 2020 | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 300,000,000 | ||||
Unsecured debt | Term Loan C | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | $ 75,000,000 | ||||
Unsecured debt | Hudson Pacific Partners L.P. | 5-Year Term Loan due April 2020 | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 300,000,000 | ||||
Debt instrument, term (in years) | 5 years | ||||
Unsecured debt | Hudson Pacific Partners L.P. | 7-Year Term Loan due April 2022 | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 350,000,000 | ||||
Debt instrument, term (in years) | 7 years | ||||
Unsecured debt | Hudson Pacific Partners L.P. | 5-Year Term Loan due November 2020 | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 75,000,000 | ||||
Debt instrument, term (in years) | 5 years | ||||
Unsecured debt | Hudson Pacific Partners L.P. | 7-Year Term Loan due November 2022 | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 125,000,000 | ||||
Debt instrument, term (in years) | 7 years | ||||
Unsecured debt | Hudson Pacific Partners L.P. | Term Loan A | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 300,000,000 | ||||
Unsecured debt | Hudson Pacific Partners L.P. | Term Loan B | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | 350,000,000 | ||||
Unsecured debt | Hudson Pacific Partners L.P. | Term Loan C | |||||
Debt Instrument [Line Items] | |||||
Face amount | 75,000,000 | ||||
Unsecured debt | Hudson Pacific Partners L.P. | Term Loan D | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | 125,000,000 | ||||
Senior notes | Hudson Pacific Partners L.P. | 4.65% Registered Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 4.65% | ||||
Senior notes | Hudson Pacific Partners L.P. | 3.25% Registered Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 3.25% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Increase in borrowings, net of draws | $ 415,000,000 | ||||
Revolving Credit Facility | Unsecured debt | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | 400,000,000 | $ 600,000,000 | $ 600,000,000 | ||
Debt instrument, term (in years) | 1 year | ||||
Revolving Credit Facility | Unsecured debt | Hudson Pacific Partners L.P. | |||||
Debt Instrument [Line Items] | |||||
Total borrowing capacity | $ 600,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Unsecured and secured debt, net | ||
Debt Instrument [Line Items] | ||
Remaining 2020 | $ 64,947 | |
2021 | 632 | |
2022 | 990,085 | |
2023 | 165,686 | |
2024 | 5,001 | |
Thereafter | 2,034,001 | |
Total | 3,260,352 | $ 2,845,459 |
In-substance defeased debt | ||
Debt Instrument [Line Items] | ||
Remaining 2020 | 2,498 | |
2021 | 3,494 | |
2022 | 128,213 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total | 134,205 | 135,030 |
Joint venture partner debt | ||
Debt Instrument [Line Items] | ||
Remaining 2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 66,136 | |
Total | $ 66,136 | $ 66,136 |
Debt - Unsecured Revolving Cred
Debt - Unsecured Revolving Credit Facility (Details) - Unsecured debt | 3 Months Ended | ||
Mar. 31, 2020USD ($)extensionOption | Dec. 31, 2019USD ($) | Mar. 13, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 2,890,000,000 | $ 2,475,000,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | 490,000,000 | 75,000,000 | |
Remaining borrowing capacity | 110,000,000 | 525,000,000 | |
TOTAL BORROWING CAPACITY | $ 600,000,000 | $ 600,000,000 | $ 400,000,000 |
Number of extension options | extensionOption | 1 | ||
Extension period | 1 year | ||
Revolving Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Annual facility fee rate | 0.15% | ||
Revolving Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Annual facility fee rate | 0.30% |
Debt - Covenant Summaries (Deta
Debt - Covenant Summaries (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Unsecured debt | Registered Senior Notes | |
Debt Instrument [Line Items] | |
Debt to total assets | 60.00% |
Debt to total assets, actual | 43.10% |
Total unencumbered assets to unsecured debt | 150.00% |
Total unencumbered assets to unsecured debt, actual | 214.10% |
Consolidated income available for debt service to annual debt service charge | 1.5 |
Consolidated income available for debt service to annual debt service charge, actual | 3.9 |
Secured debt to total assets | 40.00% |
Secured debt to total assets, actual | 5.90% |
Unsecured debt | 3.25% Registered Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.25% |
Unsecured debt | 3.95% Registered Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate | 3.95% |
Unsecured debt | 4.65% Registered Senior Notes | |
Debt Instrument [Line Items] | |
Interest rate | 4.65% |
Hudson Pacific Partners L.P. | |
Debt Instrument [Line Items] | |
Total liabilities to total asset value | 60.00% |
Total liabilities to total asset value, actual | 36.20% |
Unsecured indebtedness to unencumbered asset value | 60.00% |
Unsecured indebtedness to unencumbered asset value, actual | 44.20% |
Adjusted EBITDA to fixed charges | 1.5 |
Adjusted EBITDA to fixed charges, actual | 3.5 |
Secured indebtedness to total asset value | 45.00% |
Secured indebtedness to total asset value, actual | 5.30% |
Unencumbered NOI to unsecured interest expense | 2 |
Unencumbered NOI to unsecured interest expense, actual | 3.3 |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Gross interest expense | $ 30,287 | $ 27,465 |
Capitalized interest | (5,115) | (4,706) |
Amortization of deferred financing costs and loan discounts/premiums | 1,245 | 1,591 |
Interest Expense | $ 26,417 | $ 24,350 |
Derivatives (Details)
Derivatives (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)derivativeinstrument | Dec. 31, 2019USD ($)derivative | |
Derivative | ||
Gain (loss) to be reclassified in next 12 months | $ (6,700,000) | |
Met Park North | ||
Derivative | ||
Strike Rate Range | 3.71% | |
Designated as Hedging Instrument | Interest Rate Swap | ||
Derivative | ||
Number of derivative instruments held | derivative | 4 | 4 |
Notional Amount | $ 539,500,000 | $ 539,500,000 |
Fair Value (Liabilities) Assets | $ (13,515,000) | (1,312,000) |
Designated as Hedging Instrument | Interest Rate Swap | Met Park North | ||
Derivative | ||
Number of derivative instruments held | instrument | 1 | |
Notional Amount | $ 64,500,000 | |
Fair Value (Liabilities) Assets | $ (350,000) | (195,000) |
Designated as Hedging Instrument | Interest Rate Swap | Met Park North | Minimum | ||
Derivative | ||
Strike Rate Range | 3.71% | |
Designated as Hedging Instrument | Interest Rate Swap | Met Park North | Maximum | ||
Derivative | ||
Strike Rate Range | 3.71% | |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan B | ||
Derivative | ||
Number of derivative instruments held | instrument | 2 | |
Notional Amount | $ 350,000,000 | |
Fair Value (Liabilities) Assets | $ (9,774,000) | (1,596,000) |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan B | Minimum | ||
Derivative | ||
Strike Rate Range | 2.96% | |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan B | Maximum | ||
Derivative | ||
Strike Rate Range | 3.46% | |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan D | ||
Derivative | ||
Number of derivative instruments held | instrument | 1 | |
Notional Amount | $ 125,000,000 | |
Fair Value (Liabilities) Assets | $ (3,391,000) | $ 479,000 |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan D | Minimum | ||
Derivative | ||
Strike Rate Range | 2.63% | |
Designated as Hedging Instrument | Interest Rate Swap | Term Loan D | Maximum | ||
Derivative | ||
Strike Rate Range | 3.13% |
U.S. Government Securities (Det
U.S. Government Securities (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 7,900,000 | |
Gross unrealized losses | 0 | |
Carrying Value | ||
Due in 1 year | 4,945,000 | |
Due in 1 to 5 years | 134,530,000 | |
U.S Government securities | 139,475,000 | $ 140,700,000 |
Fair Value | ||
Due in 1 year | 5,028,000 | |
Due in 1 to 5 years | 142,389,000 | |
U.S. Government securities | $ 147,417,000 |
Future Minimum Rents and Leas_2
Future Minimum Rents and Lease Payments - Future Minimum Base Rents Receivable (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Remaining 2020 | $ 446,934 |
2021 | 584,672 |
2022 | 548,503 |
2023 | 510,695 |
2024 | 440,803 |
Thereafter | 1,842,648 |
TOTAL | 4,374,255 |
Non-Cancellable | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Remaining 2020 | 438,692 |
2021 | 557,376 |
2022 | 509,360 |
2023 | 469,228 |
2024 | 419,819 |
Thereafter | 1,689,436 |
TOTAL | 4,083,911 |
Subject to Early Termination Options | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
Remaining 2020 | 8,242 |
2021 | 27,296 |
2022 | 39,143 |
2023 | 41,467 |
2024 | 20,984 |
Thereafter | 153,212 |
TOTAL | $ 290,344 |
Future Minimum Rents and Leas_3
Future Minimum Rents and Lease Payments - Ground Lease Terms for Properties Held (Details) - Ground Lease | 3 Months Ended |
Mar. 31, 2020USD ($)extensionOption | |
3400 Hillview | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, cumulative increases in consumer price index | $ | $ 1,000,000 |
Minimum annual rent calculation, percent of consumer price index over the next 5 years | 75.00% |
Minimum annual rent calculation, percent of consumer price index, thereafter | 75.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Clocktower Square | |
Operating Leased Assets [Line Items] | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum rent adjustments, percent of average annual participation rent over five years | 60.00% |
Del Amo | |
Operating Leased Assets [Line Items] | |
Minimum annual rent | $ | $ 1 |
Ferry Building | |
Operating Leased Assets [Line Items] | |
Minimum annual rent adjustments, frequency | 5 years |
Cumulative change in CPI, floor, percent | 10.00% |
Cumulative change in CPI, cap, percent | 20.00% |
Ferry Building, Parking Lot | |
Operating Leased Assets [Line Items] | |
Cumulative change in CPI, floor, percent | 2.00% |
Cumulative change in CPI, cap, percent | 4.00% |
Renewal term | 10 years |
Foothill Research Center | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
3176 Porter | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
Metro Center | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of land fair market value | 7.233% |
Minimum annual rent adjustments, frequency | 10 years |
Renewal term | 11 years |
Number of options to extend | extensionOption | 4 |
Page Mill Center | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum rent adjustments, percent of average annual participation rent over five years | 60.00% |
Page Mill Hill | |
Operating Leased Assets [Line Items] | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of annual rent, previous 7 years | 60.00% |
Minimum annual rent adjustments, percent of annual rent, previous 7 years | 60.00% |
Palo Alto Square | |
Operating Leased Assets [Line Items] | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum annual rent adjustments, percent of annual rent, previous 5 years | 50.00% |
Sunset Gower Studios | |
Operating Leased Assets [Line Items] | |
Minimum annual rent calculation, percent of land fair market value | 7.50% |
Minimum annual rent adjustments, frequency | 7 years |
Techmart | |
Operating Leased Assets [Line Items] | |
Minimum annual rent adjustments, frequency | 5 years |
Renewal term | 10 years |
Number of options to extend | extensionOption | 2 |
Minimum rent adjustments, percent | 10.00% |
Future Minimum Rents and Leas_4
Future Minimum Rents and Lease Payments - Rental Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Contingent rental expense | $ 2,157 | $ 2,514 |
Minimum rental expense | $ 4,991 | $ 4,603 |
Future Minimum Rents and Leas_5
Future Minimum Rents and Lease Payments - Future Minimum Payments Due (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remaining 2020 | $ 13,876 | |
2021 | 18,622 | |
2022 | 18,663 | |
2023 | 18,438 | |
2024 | 18,392 | |
Thereafter | 534,353 | |
Total ground lease payments | 622,344 | |
Less: interest portion | (349,923) | |
PRESENT VALUE OF LEASE LIABILITY | $ 272,421 | $ 272,701 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | $ 0 | $ 479 |
Derivative liabilities | (13,515) | (1,791) |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | 139,475 | 140,749 |
Carrying Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,890,000 | 2,475,000 |
Carrying Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 370,352 | 370,459 |
Carrying Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 134,205 | 135,030 |
Carrying Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 66,136 | 66,136 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | 147,417 | 144,589 |
Fair Value | Unsecured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 2,829,991 | 2,540,606 |
Fair Value | Secured debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 366,535 | 366,476 |
Fair Value | In-substance defeased debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 147,417 | 134,936 |
Fair Value | Joint venture partner debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt | 69,029 | 68,557 |
Non-Real Estate Investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | 7,618 | 5,545 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 1 | Non-Real Estate Investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 479 |
Derivative liabilities | (13,515) | (1,791) |
Level 2 | Non-Real Estate Investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | 7,618 | 5,545 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 3 | Non-Real Estate Investment | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Non-real estate investments | $ 0 | $ 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock compensation | $ 4,895 | $ 5,150 | |
Capitalized stock compensation | 985 | 29 | |
Total stock compensation | $ 5,880 | $ 5,179 | |
Existing and Newly Elected Board Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
OPP Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 2 years | ||
Award performance period | 3 years | ||
Award vesting percentage after initial performance period | 50.00% | ||
Award vesting rights | 50.00% | ||
Award mandatory holding period | 2 years | ||
PSU Plan 2020 | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period | 3 years | ||
PSU Plan 2020 | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Award performance period | 1 year |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Basic net income (loss) available to common stockholders | $ 10,777 | $ (39,392) |
Effect of dilutive instruments | 108 | 0 |
Diluted net income (loss) available to common stockholders | $ 10,885 | $ (39,392) |
Denominator: | ||
Basic weighted average common shares outstanding (in shares) | 154,432,602 | 154,396,159 |
Effect of dilutive instruments (in shares) | 3,677,310 | 0 |
Diluted weighted average common shares outstanding (in shares) | 158,109,912 | 154,396,159 |
Basic earnings (loss) per common share (in dollars per share) | $ 0.07 | $ (0.26) |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.07 | $ (0.26) |
Hudson Pacific Partners L.P. | ||
Numerator: | ||
Basic net income (loss) available to common stockholders | $ 10,840 | $ (39,577) |
Diluted net income (loss) available to common stockholders | $ 10,840 | $ (39,577) |
Denominator: | ||
Basic weighted average common units outstanding (in shares) | 155,344,460 | 155,120,144 |
Effect of dilutive instruments (in shares) | 2,156,773 | 0 |
Diluted weighted average common units outstanding (in shares) | 157,501,233 | 155,120,144 |
Basic earnings (loss) per common unit (in dollars per share) | $ 0.07 | $ (0.26) |
Diluted earnings (loss) per common unit (in dollars per share) | $ 0.07 | $ (0.26) |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Temporary Equity [Line Items] | ||
Distribution rate of preferred stock | 6.25% | |
Consolidated Entities | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Redeemable noncontrolling interest, balance | $ 125,260 | |
Contributions | 2,456 | |
Declared dividend | 0 | |
Net income (loss) | (633) | |
Redeemable noncontrolling interest, balance | $ 127,083 | |
VIE, Primary Beneficiary | HPP-MAC WSP, LLC | ||
Temporary Equity [Line Items] | ||
VIE, ownership Interest | 75.00% | |
VIE, Primary Beneficiary | Ferry Building | ||
Temporary Equity [Line Items] | ||
VIE, ownership Interest | 55.00% | |
Preferred Class A | ||
Temporary Equity [Line Items] | ||
Preferred A shares outstanding (in shares) | 392,598 | 392,598 |
Series A Redeemable Preferred Units | ||
Temporary Equity [Line Items] | ||
Redeemable non-controlling interest, liquidation preference (in dollars per share) | $ 25 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Redeemable noncontrolling interest, balance | $ 9,815 | |
Contributions | 0 | |
Declared dividend | (153) | |
Net income (loss) | 153 | |
Redeemable noncontrolling interest, balance | $ 9,815 |
Equity - Comprehensive Income (
Equity - Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 3,709,362 | $ 3,830,130 |
Total other comprehensive loss | (17,414) | (7,864) |
Ending Balance | 3,629,754 | 3,740,244 |
Interest expense | 26,417 | 24,350 |
Hudson Pacific Partners L.P. | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 3,709,362 | 3,830,130 |
Total other comprehensive loss | (17,414) | (7,864) |
Ending balance | 3,629,754 | 3,740,244 |
Interest expense | 26,417 | 24,350 |
Hudson Pacific Partners L.P. | Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (613) | 17,565 |
Unrealized losses recognized in OCI | (17,277) | |
Reclassification adjustment for realized gains | (137) | |
Total other comprehensive loss | (17,414) | (7,864) |
Ending balance | (18,027) | 9,701 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (561) | 17,501 |
Unrealized losses recognized in OCI | (17,107) | |
Reclassification adjustment for realized gains | (136) | |
Total other comprehensive loss | (17,243) | (7,827) |
Ending Balance | (17,804) | $ 9,674 |
Derivative Instruments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | (2,391) | |
Unrealized losses recognized in OCI | (12,157) | |
Reclassification adjustment for realized gains | (136) | |
Total other comprehensive loss | (12,293) | |
Ending Balance | (14,684) | |
Derivative Instruments | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Interest expense | 26,400 | |
Derivative Instruments | Hudson Pacific Partners L.P. | Reclassification out of Accumulated Other Comprehensive Income | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Interest expense | 26,400 | |
Currency Translation Adjustments | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning Balance | 1,830 | |
Unrealized losses recognized in OCI | (4,950) | |
Reclassification adjustment for realized gains | 0 | |
Total other comprehensive loss | (4,950) | |
Ending Balance | $ (3,120) |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) | 3 Months Ended | |
Mar. 31, 2020shares | Dec. 31, 2019shares | |
Class of Stock [Line Items] | ||
Common stock/units, outstanding (in shares) | 153,295,905 | 154,691,052 |
Hudson Pacific Partners L.P. | ||
Class of Stock [Line Items] | ||
Company's ownership interest percentage | 99.40% | 99.40% |
Noncontrolling Interest in Operating Partnership | ||
Class of Stock [Line Items] | ||
Non-controlling units in the operating partnership (in shares) | 911,858 | 991,858 |
Non-controlling ownership interest percentage | 0.60% | 0.60% |
Non-controlling common units in the operating partnership - common units (in shares) | 550,969 | 550,969 |
Non-controlling common units in the operating partnership - preferred units (in shares) | 360,889 | 360,889 |
Performance units | ||
Class of Stock [Line Items] | ||
Conversion ratio | 1 | |
Partnership Interest | Hudson Pacific Partners L.P. | ||
Class of Stock [Line Items] | ||
Common stock/units, outstanding (in shares) | 153,295,905 | 154,691,052 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Class of Stock [Line Items] | ||
Common stock, dividends (in dollars per share) | $ 0.25 | $ 0.25 |
Common units, dividends (in dollars per share) | 0.25 | 0.25 |
Performance units, dividends (in dollars per share) | 0.25 | 0.25 |
Series A preferred units | ||
Class of Stock [Line Items] | ||
Preferred units, dividends (in dollars per share) | $ 0.3906 | $ 0.3906 |
Equity - Additional Information
Equity - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 08, 2018 | |
Class of Stock [Line Items] | ||
Stock repurchase program, amount authorized | $ 250,000,000 | |
Repurchase of common stock | $ (35,351,000) | |
Stock repurchase program, repurchase of common stock, cumulative | 85,400,000 | |
At-the-Market | ||
Class of Stock [Line Items] | ||
Maximum sales authorized | 125,000,000 | |
Cumulative total sold | $ 20,100,000 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | |
Mar. 31, 2020USD ($)property | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | property | 2 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 206,227,000 | $ 197,389,000 |
Operating expenses | (74,510,000) | (71,924,000) |
Total segment profit | 131,717,000 | 125,465,000 |
Net income (loss) | 13,949,000 | (36,895,000) |
General and administrative | 18,618,000 | 18,094,000 |
Depreciation and amortization | 73,763,000 | 68,505,000 |
Loss from unconsolidated real estate entity | 236,000 | 0 |
Fee income | (610,000) | 0 |
Interest expense | 26,417,000 | 24,350,000 |
Interest income | (1,025,000) | (1,024,000) |
Transaction-related expenses | 102,000 | 128,000 |
Unrealized loss on non-real estate investment | 581,000 | 0 |
Impairment loss | 0 | 52,201,000 |
Other (income) expense | (314,000) | 106,000 |
Office Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 186,427,000 | 175,858,000 |
Operating expenses | (63,860,000) | (60,815,000) |
Total segment profit | 122,567,000 | 115,043,000 |
Studio Segment | ||
Segment Reporting Information [Line Items] | ||
Revenues | 19,800,000 | 21,531,000 |
Operating expenses | (10,650,000) | (11,109,000) |
Total segment profit | $ 9,150,000 | $ 10,422,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2020USD ($) |
Unsecured debt | Revolving Credit Facility | |
Loss Contingencies | |
Letters of credit, amount outstanding | $ 3.4 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest, net of capitalized interest | $ 38,126 | $ 13,543 | ||
Non-cash investing and financing activities | ||||
Accounts payable and accrued liabilities for real estate investments | (142,919) | (813) | ||
Cash and cash equivalents | 392,136 | 52,445 | $ 46,224 | $ 53,740 |
Restricted cash | 11,982 | 13,626 | 12,034 | 14,451 |
TOTAL | 404,118 | 66,071 | 58,258 | 68,191 |
Hudson Pacific Partners L.P. | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid for interest, net of capitalized interest | 38,126 | 13,543 | ||
Non-cash investing and financing activities | ||||
Accounts payable and accrued liabilities for real estate investments | (142,919) | (813) | ||
Cash and cash equivalents | 392,136 | 52,445 | 46,224 | 53,740 |
Restricted cash | 11,982 | 13,626 | 12,034 | 14,451 |
TOTAL | $ 404,118 | $ 66,071 | $ 58,258 | $ 68,191 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | May 01, 2020USD ($) |
Subsequent Event [Line Items] | |
Rent deferral due to COVID-19 pandemic | $ 2.2 |
Rent abatement due to COVID-19 pandemic | 0.4 |
Rent not received, remains in discussion for payment or deferral | $ 1.3 |
Uncategorized Items - hpp-20200
Label | Element | Value |
Hudson Pacific Partners L.P. [Member] | Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | us-gaap_OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax | $ (4,999,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (4,999,000) |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | 1,845,000 |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | (3,154,000) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | us-gaap_ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax | 0 |
Hudson Pacific Partners L.P. [Member] | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | us-gaap_OtherComprehensiveIncomeLossBeforeReclassificationsNetOfTax | (12,278,000) |
Other Comprehensive Income (Loss), Net of Tax | us-gaap_OtherComprehensiveIncomeLossNetOfTax | (12,415,000) |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | (2,458,000) |
Partners' Capital, Including Portion Attributable to Noncontrolling Interest | us-gaap_PartnersCapitalIncludingPortionAttributableToNoncontrollingInterest | (14,873,000) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | us-gaap_ReclassificationFromAccumulatedOtherComprehensiveIncomeCurrentPeriodNetOfTax | 137,000 |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,105,000) |