Form 8-K Hudson Pacific Propertie For: Feb 25

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February 26, 2015 4:29 PM EST

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________

FORM 8-K

_________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15 (d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 26, 2015

_________________________________

Hudson Pacific Properties, Inc.

(Exact name of registrant as specified in its charter)



Maryland	001-34789	27-1430478
(State or other	(Commission File Number)	(IRS Employer
jurisdiction of		Identification No.)
incorporation)



11601 Wilshire Blvd., Sixth Floor Los Angeles, California		90025
(Address of Principal Executive Offices)		(Zip Code)

(310) 445-5700

Registrant's Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

_________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 — Financial Information


Item 2.02	Results of Operations and Financial Condition.

On February 26, 2015, Hudson Pacific Properties, Inc. (also referred to herein as the “Company,” “we,” “us,” or “our”) issued a press release regarding our financial results for our quarter and year ended December 31, 2014. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on February 26, 2015, we made available on our Web site (www.hudsonpacificproperties.com) certain supplemental information concerning our financial results and operations for the fourth quarter. A copy of the supplemental information is furnished herewith as Exhibit 99.2, which is incorporated herein by reference.

Exhibits 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Section 7 — Regulation FD


Item 7.01	Regulation FD Disclosure.

As discussed in Item 2.02 above, we issued a press release regarding our financial results for our quarter and year ended December 31, 2014 and made available on our Web site certain supplemental information relating to our financial results for the quarter ended December 31, 2014.

The information being furnished pursuant to Item 7.01 shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.

Section 9 — Financial Statements and Exhibits


Item 9.01	Financial Statements and Exhibits.



(d)	Exhibits.



Exhibit No.		Description
99.1**		Press release dated February 26, 2015 regarding the Company’s financial results for the quarter and full-year ended December 31, 2014.
99.2**		Supplemental Operating and Financial Data for the quarter ended December 31, 2014.



**	Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.




		HUDSON PACIFIC PROPERTIES, INC.
Date:	February 26, 2015	By:	/s/ Mark T. Lammas
			Mark T. Lammas
			Chief Financial Officer

EXHBIT INDEX



Exhibit No.		Description
99.1**		Press release dated February 26, 2015 regarding the Company’s financial results for the quarter and full-year ended December 31, 2014.
99.2**		Supplemental Operating and Financial Data for the quarter ended December 31, 2014.



**	Furnished herewith.

Hudson Pacific Properties Announces Fourth Quarter and Full Year 2014 Financial Results

Los Angeles, CA, February 26, 2015—Hudson Pacific Properties, Inc. (the “Company,” “we,” “us” or “our”) (NYSE: HPP) today announced financial results for the fourth quarter ended December 31, 2014.

Financial Results

Funds From Operations (FFO) (excluding specified items) for the three months ended December 31, 2014 totaled $22.2 million, or $0.32 per diluted share, compared to FFO (excluding specified items) of $15.6 million, or $0.26 per share, a year ago. The specified items for the fourth quarter of 2014 consisted of expenses associated with the acquisition of the Equity Office Properties’ San Francisco Peninsula and Silicon Valley portfolio (the “EOP Northern California Portfolio”) of $4.3 million, or $0.06 per diluted share, and costs associated with a one-year consulting arrangement with a former executive of $1.3 million, or $0.02 per diluted share. Specified items for the fourth quarter of 2013 consisted of expenses associated with the acquisition of the Company’s office portfolio in Seattle, Washington of $0.5 million, or $0.01 per diluted share, and an early lease termination payment from Bank of America relating to the Company’s 1455 Market Street property of $0.8 million, or $0.01 per diluted share. FFO, including the specified items, totaled $16.6 million, or $0.24 per diluted share, for the three months ended December 31, 2014, compared to $15.9 million, or $0.27 per share, a year ago.

The Company reported a net loss attributable to common stockholders of $2.3 million, or $(0.03) per diluted share, for the three months ended December 31, 2014, compared to a net loss attributable to common stockholders of $0.1 million, or $0.00 per diluted share, for the three months ended December 31, 2013.

“The fourth quarter was extremely productive for Hudson and included continued leasing momentum, an office property acquisition, and execution of agreements to sell a non-strategic, legacy asset and to acquire a large portfolio of properties in Northern California from Blackstone,” said Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties. “Leasing remained active with the completion of new and renewal leases totaling 211,103 square feet during the quarter, which reflects the extension of NFL Media’s lease for 137,306 square feet at our 10900 and 19050 Washington properties in Culver City, California through 2019. We purchased the 88,215-square-foot 12655 Jefferson property in the Playa Vista submarket of Los Angeles, California in an off-market transaction for $38.0 million before closing adjustments, paid from borrowings under our revolving credit facility. We entered into an agreement to sell our 222,243-square-foot First Financial property in Encino, California for $89.0 million before closing adjustments with closing scheduled for next week. Finally, we entered into an agreement to acquire the EOP Northern California Portfolio, which consists of 26 properties totaling 8.2 million square feet, in a transaction entailing $1.75 billion of cash consideration and the issuance to approximately 63.5 million shares and units. We are on track to close the transaction later this quarter.”

Mr. Coleman continued, “Subsequent to the end of the quarter, we formed a joint venture through which CPPIB purchased a 45.0% interest in our 1,025,833-square-foot 1455 Market Street property for $219.2 million. The Company intends to use net proceeds from the 1455 Market Street and First Financial transactions to acquire the EOP Northern California Portfolio pursuant to like-kind exchanges under the Internal Revenue Code Section 1031. We also completed a public offering of 12,650,000 shares of common stock at a public offering price of $31.75 per share resulting in net proceeds of $385.6 million, after deducting underwriting discounts and before closing adjustments. We contributed the net proceeds from this offering to our operating partnership, which intends to use them toward the acquisition of the EOP Northern California Portfolio. Pending these applications, our operating partnership used net proceeds from the offering to temporarily repay indebtedness outstanding under our revolving credit facility.”

Fourth Quarter Highlights


•	FFO (excluding specified items) of $22.2 million, or $0.32 per diluted share, compared to $15.6 million, or $0.26 per share, a year ago;


•	Completed new and renewal leases totaling 211,103 square feet;


•	Stabilized office portfolio leased rate of 94.6% at December 31, 2014;


•	Completed acquisition of the 88,215-square-foot 12655 Jefferson property in the Playa Vista submarket of Los Angeles, California for $38.0 million (before certain credits, closing costs and prorations);


•	Fully repaid a $39.7 million loan secured by the 6922 Hollywood property in Hollywood, California;


•	Amended the Company’s construction loan for the Element LA property to, among other things, increase availability from $65.5 million to $102.4 million;


•	Entered into an agreement to sell the First Financial property in Encino, California for $89.0 million (before certain credits, closing costs and prorations);


•	Entered into an agreement to acquire the EOP Northern California Portfolio in a transaction entailing $1.75 billion of cash consideration and the issuance of approximately 63.5 million shares;


•	Declared and paid quarterly dividend of $0.125 per common share; and


•	Declared and paid dividend of $0.52344 per share on 8.375% Series B Cumulative Preferred Stock.

Combined Operating Results For The Three Months Ended December 31, 2014

Total revenue from continuing operations during the quarter increased 19.8% to $68.8 million from $57.4 million for the same quarter a year ago. Total operating expenses from continuing operations increased 21.6% to $57.1 million from $47.0 million for the same quarter a year ago. As a result, income from operations increased 11.8% to $11.6 million for the fourth quarter of 2014, compared to income from operations of $10.4 million for the same quarter a year ago. The primary reasons for the increases in total revenue and total operating expenses are discussed below in connection with the Company’s segment operating results.

Interest expense during the fourth quarter decreased 5.6% to $6.4 million, compared to interest expense of $6.8 million for the same quarter a year ago, which reflects the Company’s ability to obtain financing at more favorable interest rates, as well as an increase in capitalized interest resulting from additional development and redevelopment projects. At December 31, 2014, the Company had $960.5 million of notes payable, compared to $920.9 million as of September 30, 2014 and $931.3 million at December 31, 2013.

Segment Operating Results For The Three Months Ended December 31, 2014

Office Properties

Total revenue from continuing operations at the Company’s office properties increased 22.9% to $58.6 million from $47.7 million for the same quarter a year ago. The increase was primarily the result of a $6.7 million increase in rental revenue to $41.9 million, a $2.6 million increase in tenant recoveries to $10.9 million, and a $1.6 million increase in parking and other revenue to $5.8 million, largely resulting from significant leasing activity at the 1455 Market Street, Rincon Center and 901 Market Street properties, acquisition of the Merrill Place property on February 12, 2014, and interest income earned from the Broadway Trade Center note participation purchased on August 20, 2014.

Office property operating expenses from continuing operations increased 6.2% to $20.4 million from $19.2 million for the same quarter a year ago. The increase was primarily the result of expenses associated with higher average occupancy, property tax expenses resulting from the reassessment of certain of our San Francisco properties and acquisition of the Merrill Place property on February 12, 2014.

Same-store office net operating income in the fourth quarter (excluding specified items) increased by 28.2% on a GAAP basis and 25.7% on a cash basis.

At December 31, 2014, the Company’s stabilized office portfolio was 94.6% leased. During the quarter, the Company executed 18 new and renewal leases totaling 211,103 square feet.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties increased 4.5% to $10.2 million from $9.7 million for the same quarter a year ago due to a $1.5 million increase in other property-related revenue to $4.7 million resulting from heightened production activity at the Sunset Gower property. Despite this trend, rental revenue decreased by $0.6 million to $5.2 million and tenant recoveries decreased by $0.4 million to $0.2 million, relative to the same quarter a year ago. The Company’s decision to take certain buildings and stages off-line to facilitate its ICON development and other longer-term plans for the Sunset Bronson property offset higher rental revenue and tenant recoveries generated by strong occupancy and heightened production activity at the Sunset Gower property. During the fourth quarter, the Company raised Building 14 and partially demolished Building 10, which will remain unoccupied until April, to make way for the ICON development, and focused on short-term deals at Building 6 to accommodate KTLA’s future occupancy.

Total media and entertainment operating expenses increased 22.6% to $7.4 million from $6.0 million for the same quarter a year ago largely due to additional lighting expense incurred in connection with heightened production activity at the Sunset Gower property.

As a result, same-store media and entertainment net operating income in the fourth quarter (excluding specified items) decreased by 24.9% on a GAAP basis and 25.3% on a cash basis.

As of December 31, 2014, the fourth quarter same-store average occupancy for the media and entertainment properties decreased to 70.4% from 70.7% for the same period a year ago, reflecting the temporary vacancy of Building 10 at the Sunset Bronson property.

Combined Operating Results For The Twelve Months Ended December 31, 2014

For the year ended December 31, 2014, total revenue from continuing operations was $253.4 million, an increase of 23.3% from $205.6 million in the same period the prior year. Total operating expenses from continuing operations were $204.7 million, compared to $177.6 million in the same period a year ago. As a result, income from operations increased 74.1% to $48.7 million for the year ended December 31, 2014, compared to income from operations of $28.0 million for the prior year. Revenues for the year ended December 31, 2014 include an early lease termination payment from Fox Interactive Media, Inc. of $1.6 million (after the write-off of non-cash items) relating to the 625 Second Street property, compared to an early lease termination payment from Bank of America of $1.6 million (after the write-off of non-cash items) relating to the 1455 Market Street property for the same period a year ago. Operating expenses for the year ended December 31, 2014 include a one-time supplemental net property tax expense of $0.8 million largely resulting from the reassessment of the Company’s San Francisco portfolio, compared to a property tax reimbursement of $0.8 million resulting from the reassessment of the Sunset Gower property for the same period a year ago. Operating expenses for the year ended December 31, 2014 also include costs of $4.1 million associated with a one-year consulting arrangement with a former executive with no comparable activity for the same period a year ago. The Company had $5.5 million of gain on sale associated with disposition of the Tierrasanta property for the year ended December 31, 2014, compared to $5.6 million of impairment loss associated with disposition of the City Plaza property for the same period a year ago. The Company had $4.6 million of acquisition-related expense for the year ended December 31, 2014, compared to $1.4 million for the same period a year ago. Interest expense for the year ended December 31, 2014 increased 1.8% to $25.9 million, compared to $25.5 million for the same period a year ago. At December 31, 2014, the Company had $960.5 million of notes payable, compared to $931.3 million at December 31, 2013.

Balance Sheet

At December 31, 2014, the Company had total assets of $2.3 billion, including unrestricted cash and cash equivalents of $17.8 million. At December 31, 2014, the Company had $300.0 million of total capacity under its unsecured revolving credit facility, of which $130.0 million had been drawn. Subsequent to the end of the fourth quarter, the Company fully repaid amounts outstanding under its unsecured revolving credit facility from proceeds of the January common stock offering. The Company currently has no outstanding balance under its revolving credit facility.

Financings

On October 2, 2014, the Company fully repaid a $39.7 million loan secured by its 6922 Hollywood property in Hollywood, California. The loan bore interest at annual rate of 5.580% and was scheduled to mature on January 1, 2015. The Company repaid the loan with proceeds from a draw under its unsecured revolving credit facility.

On November 24, 2014, the Company amended its construction loan for the Element LA property to, among other things, increase availability from $65.5 million to $102.4 million to fund budgeted site-work, tenant improvement, and leasing commission costs associated with the property’s Riot Games lease.

Leasing Activities

Effective November 20, 2014, the Company executed an agreement with NFL Media to extend their lease through 2019 at the 10900 and 10950 Washington Boulevard properties in Culver City, California. NFL Media remains the anchor tenant for these two assets, occupying a total of 137,306 square feet consisting of office space and two sound stages used exclusively to broadcast the NFL Network, NFL.com and NFL Mobile.

Acquisitions

On October 17, 2014, the Company acquired the six-story, 88,215-square-foot 12655 Jefferson property located in the Playa Vista submarket of Los Angeles, California in an off-market transaction for $38.0 million (before certain credits, closing costs and prorations), paid from borrowings under the Company’s revolving credit facility. Built in 1985, the building is currently vacant and conceptual designs and plans have been completed for creative office conversion with expected delivery in the fourth quarter of 2015. 12655 Jefferson is adjacent to the Playa Vista Development and Runway, a “downtown epicenter” with over 220,000 square feet of lifestyle retail, restaurants and amenities. Playa Vista remains a leading submarket for top-tier creative office tenants, such as Yahoo!, Facebook, Google, Microsoft and Sony.

On December 6, 2014, the Company entered into an agreement to acquire via an exclusive, direct transaction the EOP Northern California Portfolio from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Northern California Portfolio consists of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto Silicon Valley and San Jose Airport submarkets. Despite a strong, diversified tenancy, including blue-chip technology companies like Google, Cisco and Qualcomm, the EOP Northern California Portfolio’s below-market rents and occupancy, as well as significant near-term lease roll, afford ample opportunity for substantial embedded net operating income growth. The Company will fund the acquisition with $1.75 billion in cash and approximately 63.5 million common shares and operating partnership units issued to Blackstone, which upon closing will own approximately 44.0% of the Company’s common equity on a fully diluted basis and have representation on the Company’s Board of Directors. The Company has obtained $1.75 billion of committed bridge financing, but is pursuing alternatives to fund the cash consideration for the transaction. The Company expects the transaction to close in late first quarter subject to customary closing conditions, including its shareholders’ vote of approval at a special meeting on March 5, 2015.

The Company expects to use proceeds from the 1455 Market Street property joint venture transaction and its pending disposition of the First Financial property, together with proceeds (after repayment of its revolving credit facility) from the recent equity offering to partially fund the cash consideration component of the EOP Northern California Portfolio

acquisition. The Company is pursuing various unsecured and secured financing sources for total proceeds of approximately $1.3 billion to fund the remaining cash consideration and closing costs for the transaction.

Dispositions

On December 29, 2014, the Company entered into an agreement to sell its First Financial property for $89.0 million (before certain credits, prorations and closing costs). The Company expects the transaction, subject to assumption of an existing $43.0 million loan, to close the first week of March, and intends to use net proceeds from the disposition to acquire the EOP Northern California Portfolio pursuant to a like-kind exchange under the Internal Revenue Code Section 1031. First Financial is a 222,243-square-foot office building located in Encino, California that was acquired by the Company in connection with its June 29, 2010 initial public offering. While the Company created value through lease renewals and backfilling of office space, including a 29,898-square-foot lease signed with luxury fitness company Equinox, the submarket’s tenant mix did not align with the Company’s strategy to attract and retain high-growth technology, media and entertainment users.

Activities Subsequent to December 31, 2014

On January 8, 2015, the Company formed a joint venture through which California Pension Plan Investment Board (“CPPIB”) purchased a 45.0% interest in the 1455 Market Street property for $219.2 million (before certain credits, prorations and closing costs). The Company, which acquired the property in December 2010, retained a 55.0% ownership stake along with general partner status, and continues to oversee management and leasing. 1455 Market Street is a 1,025,833-square-foot, 22-story, Class-A office building that fronts an entire block along 11^th Street in San Francisco’s thriving Mid-Market neighborhood. Formerly a critical data center for Bank of America, the property now serves as the global headquarters for leading growth companies Uber and Square. The Company intends to use joint-venture net proceeds to acquire the EOP Northern California Portfolio pursuant to a like-kind exchange under the Internal Revenue Code Section 1031.

On January 20, 2014, the Company completed the public offering of 12,650,000 shares of its common stock (including 1,650,000 shares of its common stock issued and sold pursuant to the exercise of the underwriters’ option to purchase additional shares in full) at a public offering price of $31.75 per share. The net proceeds from the offering, after deducting underwriting discounts (before other transaction costs), were approximately $385.6 million. The Company contributed net proceeds from this offering to its operating partnership, which intends to use them toward the acquisition of the EOP Northern California Portfolio or, if such acquisition is not completed, to fund development and redevelopment activities, potential acquisition opportunities and/or for general corporate purposes. Pending these applications, the operating partnership used net proceeds from the offering to temporarily repay indebtedness outstanding under its revolving credit facility.

Dividend

The Company’s Board of Directors declared a dividend on its common stock of $0.125 per share and on its 8.375% Series B Cumulative Preferred Stock of $0.52344 per share for the fourth quarter of 2014. Both dividends were paid on December 30, 2014 to stockholders of record on December 19, 2014.

2015 Outlook

The Company is providing full-year 2015 FFO guidance in the range of $1.42 to $1.48 per diluted share (excluding specified items). This guidance reflects the acquisitions, dispositions, financings and leasing activity referenced in this press release and all previously announced acquisitions, dispositions, financings and leasing activity, including the Company’s pending EOP Northern California Portfolio acquisition and the on-going, temporary impact on tenancy of construction and leasing activities at the Sunset Bronson property. For purposes of this guidance, the Company has assumed acquisition of the EOP Northern California Portfolio will close as of April 1, 2015. As described in this release, funding for the cash component of that acquisition is assumed to include proceeds from the 1455 Market Street joint venture transaction, the pending disposition of the First Financial property, the recent equity offering (after

repayment of the Company’s revolving credit facility), and $1.3 billion of secured and/or unsecured indebtedness. Further details regarding the financing component of the cash consideration will be discussed on today’s earnings call. The Company intends to update its full-year 2015 FFO guidance upon the closing of the EOP Northern California Portfolio acquisition to reflect final funding sources and other matters. As is always the case, the Company’s guidance does not reflect or attempt to anticipate any impact to FFO from speculative acquisitions. The full-year 2015 FFO estimate reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this release, but otherwise excludes any impact from future unannounced or speculative acquisitions, dispositions, debt financings or repayments, recapitalizations, capital market activity or similar matters.

Supplemental Information

Supplemental financial information regarding the Company’s fourth quarter 2014 results may be found in the Investor Relations section of the Company’s Web site at www.hudsonpacificproperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will conduct a conference call to discuss the results at 1:30 p.m. PT / 4:30 p.m. ET on February 26, 2015. To participate in the event by telephone, please dial (877) 407-0784 five to 10 minutes prior to the start time (to allow time for registration) and use conference ID 13599252. International callers should dial (201) 689-8560 and enter the same conference ID number. The call will also be broadcast live over the Internet and can be accessed on the Investor Relations section of the Company’s Web site at www.hudsonpacificproperties.com. A replay of the call will also be available for 90 days on the Company’s Web site. For those unable to participate during the live broadcast, a replay will be available beginning February 26, 2015, at 4:30 p.m. PT / 7:30 p.m. ET, through March 5, 2014, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (877) 870-5176 and use passcode 13599252. International callers should dial (858) 384-5517 and enter the same conference ID number.

Use of Non-GAAP Information

The Company calculates funds from operations before non-controlling interest (FFO) in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO represents net income (loss), computed in accordance with accounting principles generally accepted in the United States of America (GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate depreciation and amortization (excluding amortization of above/below market lease intangible assets and liabilities and amortization of deferred financing costs and debt discounts/premium) and after adjustments for unconsolidated partnerships and joint ventures. The Company uses FFO as a supplemental performance measure because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. The Company also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare its operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that results from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of its properties, all of which have real economic effect and could materially impact the Company’s results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, the Company’s FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of the Company’s performance. FFO should not be used as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including the Company’s ability to pay dividends. FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

About Hudson Pacific Properties

Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties and state-of-the-art media and entertainment properties in select growth markets primarily in Northern and Southern California and the Pacific Northwest. The Company’s portfolio currently consists of approximately 6.8 million square feet, not including undeveloped land that can support approximately another 1.4 million square feet. The Company has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes, and is a component of the Russell 2000® and the Russell 3000® indices.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission, or SEC, on March 3, 2014, as well as the section entitled “Risk Factors Related to the Transaction” in the Company’s Current Report on Form 8-K filed with the SEC on January 10, 2015, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

Investor/Media Contact:

Hudson Pacific Properties, Inc.

Laura Campbell

Director, Investor Relations

(310) 622-1702

[email protected]

(FINANCIAL TABLES FOLLOW)

Hudson Pacific Properties, Inc. Consolidated Balance Sheet (In thousands, except share data)

	December 31, 2014			December 31, 2013
ASSETS	(Unaudited)			Audited
REAL ESTATE ASSETS
Land	$	620,805		$	570,671
Building and improvements	1,284,602			1,199,242
Tenant improvements	116,317			99,625
Furniture and fixtures	13,721			14,383
Property under development	135,850			69,104
Total real estate held for investment	2,171,295			1,953,025
Accumulated depreciation and amortization	(134,657		)	(108,411		)
Investment in real estate, net	2,036,638			1,844,614
Cash and cash equivalents	17,753			30,356
Restricted cash	14,244			13,929
Accounts receivable, net	16,247			8,862
Notes receivable	28,268			—
Straight-line rent receivables	33,006			19,715
Deferred leasing costs and lease intangibles, net	102,023			108,402
Deferred finance costs, net	8,723			8,113
Interest rate contracts	3			192
Goodwill	8,754			8,754
Prepaid expenses and other assets	6,692			5,094
Assets associated with real estate held for sale	68,534			83,245
TOTAL ASSETS	$	2,340,885		$	2,131,276

LIABILITIES AND EQUITY
Notes payable	$	918,059		$	888,308
Accounts payable and accrued liabilities	36,844			26,118
Below-market leases, net	40,969			45,184
Security deposits	6,257			5,677
Prepaid rent	8,600			7,524
Interest rate contracts	1,750			—
Liabilities associated with real estate held for sale	43,214			45,124
TOTAL LIABILITIES	1,055,693			1,017,935

6.25% series A cumulative redeemable preferred units of the Operating Partnership	10,177			10,475

EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375% series B cumulative redeemable preferred stock, $25.00 liquidation preference, 5,800,000 shares outstanding at December 31, 2014 and 2013, respectively	145,000			145,000
Common stock, $0.01 par value, 490,000,000 authorized, 66,797,816 shares and 57,230,199 shares outstanding at December 31, 2014 and 2013, respectively	668			572
Additional paid-in capital	1,070,833			903,984
Accumulated other comprehensive loss	(2,443		)	(997		)
Accumulated deficit	(34,884		)	(45,113		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	1,179,174			1,003,446
Non-controlling interest—members in Consolidated Entities	42,990			45,683
Non-controlling common units in the Operating Partnership	52,851			53,737
TOTAL EQUITY	1,275,015			1,102,866
TOTAL LIABILITIES AND EQUITY	$	2,340,885		$	2,131,276

Hudson Pacific Properties, Inc.

Combined Statements of Operations

(Unaudited, in thousands, except share and per share data)



	Three Months Ended December 31,						Year Ended December 31,

	2014			2013			2014			2013
Revenues
Office
Rental	$	41,917		$	35,174		$	156,806		$	124,839
Tenant recoveries	10,866			8,253			34,509			25,870
Parking and other	5,839			4,260			22,471			14,732
Total office revenues	58,622			47,687			213,786			165,441

Media & entertainment
Rental	5,215			5,841			22,138			23,003
Tenant recoveries	157			566			1,128			1,807
Other property-related revenue	4,723			3,267			15,751			15,072
Other	70			56			612			235
Total media & entertainment revenues	10,165			9,730			39,629			40,117

Total revenues	68,787			57,417			253,415			205,558

Operating expenses
Office operating expenses	20,432			19,243			78,372			63,434
Media & entertainment operating expenses	7,376			6,016			25,897			24,149
General and administrative	9,096			4,757			28,253			19,952
Depreciation and amortization	20,243			16,994			72,216			70,063
Total operating expenses	57,147			47,010			204,738			177,598

Income from operations	11,640			10,407			48,677			27,960

Other expense (income)
Interest expense	6,413			6,797			25,932			25,470
Interest income	(9		)	(10		)	(30		)	(272		)
Acquisition-related expenses	4,322			454			4,641			1,446
Other income	29			(140		)	(14		)	(99		)
Total other expense (income)	10,755			7,101			30,529			26,545
Income (loss) from continuing operations before gain on sale of real estate	885			3,306			18,148			1,415
Gain on sale of real estate	—			—			5,538			—
Income (loss) from continuing operations	885			3,306			23,686			1,415
(Loss) income from discontinued operations	—			(37		)	(164		)	1,571
Impairment loss from discontinued operations	—			—			—			(5,580		)
Net (loss) income from discontinued operations	—			(37		)	(164		)	(4,009		)
Net income (loss)	$	885		$	3,269		$	23,522		$	(2,594	)

Net income attributable to preferred stock and units	(3,195		)	(3,200		)	(12,785		)	(12,893		)
Net income attributable to restricted shares	(68		)	(71		)	(274		)	(300		)
Net loss (income) attributable to non-controlling interest in consolidated entities	6			(78		)	(149		)	321
Net loss (income) attributable to common units in the Operating Partnership	82			(3		)	(359		)	633
Net (loss) income attributable to Hudson Pacific Properties, Inc. common stockholders	$	(2,290	)	$	(83	)	$	9,955		$	(14,833	)
Basic and diluted per share amounts:
Net (loss) income from continuing operations attributable to common stockholders	$	(0.03	)	$	—		$	0.15		$	(0.20	)
Net income (loss) income from discontinued operations	—			—			—			(0.07		)
Net (loss) income attributable to common stockholders’ per share—basic	$	(0.03	)	$	—		$	0.15		$	(0.27	)
Weighted average shares of common stock outstanding—basic	66,512,651			56,271,285			65,792,447			55,182,647
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.500		$	0.500

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)



	Three Months Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
Reconciliation of net loss to Funds From Operations (FFO):
Net income (loss)	$	885		$	3,269		$	23,522		$	(2,594	)
Adjustments:
Depreciation and amortization of real estate assets	20,158			16,994			72,003			70,063
Depreciation and amortization—discontinued operations	—			—			—			789
Gain on sale of real estate	—			—			(5,538		)	—
Impairment loss	—			—			—			5,580
FFO attributable to non-controlling interest in Consolidated Entities	(1,254		)	(1,132		)	(5,260		)	(2,243		)
Net income attributable to preferred stock and units	(3,195		)	(3,200		)	(12,785		)	(12,893		)
FFO to common stockholders and unit holders	$	16,594		$	15,931		$	71,942		$	58,702
Specified items impacting FFO:
Acquisition-related expenses	4,322			454			4,641			1,446
Consulting fee to former executive	1,273			—			4,109			—
Supplemental property tax expenses/(savings)	—			—			809			(797		)
Lease termination revenue	—			(753		)	(1,687		)	(1,591		)
Lease termination non-cash write-off	—			—			77			—
FFO (excluding specified items) to common stockholders and unit holders	$	22,189		$	15,632		$	79,891		$	57,760

Weighted average common stock/units outstanding—diluted	69,685			59,220			68,892			58,165
FFO per common stock/unit—diluted	$	0.24		$	0.27		$	1.04		$	1.01
FFO (excluding specified items) per common stock/unit—diluted	$	0.32		$	0.26		$	1.16		$	0.99

HUDSON PACIFIC PROPERTIES, INC.

FOURTH QUARTER 2014

Supplemental Operating and Financial Information

This Supplemental Operating and Financial Data contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. You should not rely on forward-looking statements as predictions of future events. Forward-looking statements involve numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statement made by us. These risks and uncertainties include, but are not limited to: adverse economic and real estate developments in Northern and Southern California and the Pacific Northwest; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; the consequences of any possible future terrorist attacks; and other risks and uncertainties detailed in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission on March 3, 2014 and our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 10, 2015. You are cautioned that the information contained herein speaks only as of the date hereof and Hudson Pacific Properties, Inc. assumes no obligation to update any forward-looking information, whether as a result of new information, future events or otherwise. For a discussion of important risks related to Hudson Pacific Properties, Inc.’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Risk Factors” in Hudson Pacific Properties, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission on March 3, 2014 and our Current Report on Form 8-K filed with the Securities and Exchange Commission on January 10, 2015.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

TABLE OF CONTENTS



	PAGE
COMPANY BACKGROUND AND CORPORATE DATA	3

CONSOLIDATED FINANCIAL RESULTS	5

Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Funds from Operations	8
Adjusted Funds from Operations	9
Debt Summary	10

PORTFOLIO DATA

Stabilized Office Summary	12
Development, Redevelopment, Lease-up Properties, and Properties Held-For-Sale	13
Land Properties Summary	14
Media & Entertainment Portfolio Summary	15
Current Value Creation Development Projects	16
Same-Store Analysis	17
Reconciliation of Same-Store Property Net Operating Income to GAAP Net Income (Loss)	19
Net Operating Income Detail	20
Office Portfolio Leasing Activity	23
Office Portfolio Uncommenced Leases Detail	21
Office Portfolio Commenced Leases with Non-Recurring Abatements	21
Quarterly Office Lease Expirations — Next Eight Quarters	24
Office Lease Expirations — Annual	26
Fifteen Largest Office Tenants	27
Office Portfolio Diversification	28

DEFINITIONS	29

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

COMPANY BACKGROUND



CORPORATE 11601 Wilshire Boulevard, Sixth Floor, Los Angeles, California 90025 (310) 445-5700 www.hudsonpacificproperties.com
BOARD OF DIRECTORS

Victor J. Coleman		Theodore R. Antenucci	Jonathan M. Glaser
Chairman of the Board, Chief Executive Officer and President, Hudson Pacific Properties, Inc.		President and Chief Executive Officer, Catellus Development Corporation	Managing Member, JMG Capital Management LLC

Richard B. Fried		Mark D. Linehan	Robert M. Moran, Jr.
Managing Member, Farallon Capital Management, L.L.C.		President and Chief Executive Officer, Wynmark Company	Co-founder and Co-owner, FJM Investments LLC

Barry A. Porter		Robert L. Harris II	Patrick Whitesell
Managing General Partner, Clarity Partners L.P.		Executive Chairman, Acacia Research Corporation	Co-Chief Executive, WME Entertainment

EXECUTIVE AND SENIOR MANAGEMENT

Victor J. Coleman		Mark T. Lammas	Christopher Barton
Chief Executive Officer and President		Chief Financial Officer	EVP, Operations and Development

Alexander Vouvalides		Dale Shimoda	Kay L. Tidwell
Chief Investment Officer		EVP, Finance	EVP, General Counsel and Secretary

Arthur X. Suazo		Harout Diramerian	Josh Hatfield
SVP, Leasing		Chief Accounting Officer	SVP, Operations

Drew Gordon		Gary Hansel	David Tye
SVP, Northern California		SVP, Southern California	SVP, Pacific Northwest

		Elva Hernandez
		VP, Controller
INVESTOR RELATIONS
	Laura Campbell Director, Investor Relations [email protected]

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

CORPORATE DATA

(unaudited, $ in thousands, except per share data)

Hudson Pacific Properties, Inc. (NYSE: HPP) (also referred to herein as the “Company,” “we,” “us,” or “our”) is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties in select growth markets primarily in Northern and Southern California and the Pacific Northwest. Our investment strategy is focused on high barrier-to-entry, in-fill locations with favorable, long-term supply-demand characteristics. These markets include Los Angeles, Orange County, San Diego, San Francisco, Silicon Valley, the East Bay, and Seattle, which we refer to as our target markets. This Supplemental Operating and Financial Data supplements the information provided in our reports filed with the Securities and Exchange Commission. We maintain a Web site at www.hudsonpacificproperties.com.



	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Number of office properties owned	26			25			26			26			24
Office properties square feet ⁽¹⁾	5,923,827			5,422,612			5,533,656			5,510,847			5,292,824
Stabilized office properties leased rate as of end of period⁽²⁾	94.6		%	94.1		%	94.6		%	94.5		%	95.4		%
Stabilized office properties occupied rate as of end of period⁽²⁾⁽³⁾	92.6		%	93.4		%	90.9		%	88.7		%	90.1		%
Number of media & entertainment properties owned	2			2			2			2			2
Media & entertainment square feet⁽⁴⁾	869,568			884,193			884,193			884,193			884,193
Media & entertainment occupied rate as of end of period⁽⁵⁾	71.6		%	71.6		%	69.9		%	69.1		%	69.9		%
Number of land assets owned	5			6			6			6			4
Land assets square feet⁽⁶⁾	1,448,173			1,861,173			1,861,173			1,837,049			1,587,049
Market capitalization (in thousands):
Total debt⁽⁷⁾	$	957,452		$	917,238		$	848,338		$	822,684		$	925,988
Series A Preferred Units	10,177			10,177			10,177			10,177			10,475
Series B Preferred Stock	145,000			145,000			145,000			145,000			145,000
Common equity capitalization⁽⁸⁾	2,091,479			1,712,132			1,759,364			1,601,290			1,308,517
Total market capitalization	$	3,204,108		$	2,784,547		$	2,762,879		$	2,579,151		$	2,389,980
Debt/total market capitalization	29.9		%	32.9		%	30.7		%	31.9		%	38.7		%
Series A preferred units & debt/total market capitalization	30.2		%	33.3		%	31.1		%	32.3		%	39.2		%
Common stock data (NYSE: HPP):
Range of closing prices⁽⁹⁾	$ 24.64-30.34			$ 24.45 - 27.01			$ 22.32-25.91			$ 21.42-23.47			$ 19.03-22.29
Closing price at quarter end	$	30.06		$	24.66		$	25.34		$	23.07		$	21.87
Weighted average fully diluted common stock\units outstanding (in thousands)⁽¹⁰⁾	69,685			69,126			69,422			66,558			59,220
Shares of common stock\units outstanding at end of period (in thousands)⁽¹¹⁾	69,577			69,430			69,430			69,410			59,832

__________________________


(1)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing.


(2)	Stabilized office properties leased rate and occupied rate excludes the development, redevelopment, lease-up properties, and properties held-for-sale described on page 13.


(3)	Represents percent leased less signed leases not yet commenced.


(4)	During the fourth quarter ending December 31, 2014, the Company raised 14,625 square feet at our Sunset Bronson media & entertainment property to allow for its Icon development.


(5)	Percent occupied for media and entertainment properties is the average percent leased for the 12 months ended as of the quarter indicated.


(6)	Square footage for land assets represents management’s estimate of developable square feet, the majority of which remains subject to receipt of entitlement approvals that have not yet been obtained.


(7)	Total debt excludes non-cash loan premium/discount.


(8)	Common equity capitalization represents the shares of common stock (including unvested restricted shares) and OP units outstanding multiplied by the closing price of our stock at the end of the period.


(9)	For the quarter indicated.

(10)

For the quarter indicated, diluted shares represent ownership in our Company through shares of common stock, OP Units and other convertible or exchangeable instruments. While our series A preferred units became exchangeable on June 29, 2013, the conversion of the series A preferred units into shares of our common stock would be anti-dilutive based on the average daily share price of our common stock over the quarter indicated, and therefore the fully diluted common stock\units do not include shares issuable upon exchange of our series A preferred units.

(11)

This amount represents fully diluted common stock and OP units (including unvested restricted stocks) as of the end of the quarter indicated. While our series A preferred units became exchangeable on June 29, 2013, the conversion of the series A preferred units into shares of our common stock would be anti-dilutive based on the average daily share price of our common stock over the quarter indicated, and therefore the fully diluted common stock\units do not include shares issuable upon exchange of our series A preferred units.

CONSOLIDATED FINANCIAL RESULTS

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

Consolidated Balance Sheets

(Unaudited, $ in thousands, except share data)



	December 31, 2014			December 31, 2013
ASSETS
Total investment in real estate, net	$	2,036,638		$	1,844,614
Cash and cash equivalents	17,753			30,356
Restricted cash	14,244			13,929
Accounts receivable, net	16,247			8,862
Notes receivable	28,268			—
Straight-line rent receivables	33,006			19,715
Deferred leasing costs and lease intangibles, net	102,023			108,402
Deferred finance costs, net	8,723			8,113
Interest rate contracts	3			192
Goodwill	8,754			8,754
Prepaid expenses and other assets	6,692			5,094
Assets associated with real estate held for sale	68,534			83,245
TOTAL ASSETS	$	2,340,885		$	2,131,276

LIABILITIES AND EQUITY
Notes payable	$	918,059		$	888,308
Accounts payable and accrued liabilities	36,844			26,118
Below-market leases, net	40,969			45,184
Security deposits	6,257			5,677
Prepaid rent	8,600			7,524
Interest rate contracts	1,750			—
Liabilities associated with real estate held for sale	43,214			45,124
TOTAL LIABILITIES	$	1,055,693		$	1,017,935

6.25% series A cumulative redeemable preferred units of the Operating Partnership	10,177			10,475

EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375% series B cumulative redeemable preferred stock, $25.00 liquidation preference, 5,800,000 shares outstanding at December 31, 2014 and 2013, respectively	$	145,000		$	145,000
Common stock, $0.01 par value, 490,000,000 authorized, 66,797,816 shares and 57,230,199 shares outstanding at December 31, 2014 and 2013, respectively	668			572
Additional paid-in capital	1,070,833			903,984
Accumulated other comprehensive loss	(2,443		)	(997		)
Accumulated deficit	(34,884		)	(45,113		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	$	1,179,174		$	1,003,446
Non-controlling interest—members in Consolidated Entities	42,990			45,683
Non-controlling common units in the Operating Partnership	52,851			53,737
TOTAL EQUITY	$	1,275,015		$	1,102,866
TOTAL LIABILITIES AND EQUITY	$	2,340,885		$	2,131,276

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data)

	Three Months Ended December 31,						Year Ended December 31,
	Three Months Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
Revenues
Office
Rental	$	41,917		$	35,174		$	156,806		$	124,839
Tenant recoveries	10,866			8,253			34,509			25,870
Parking and other	5,839			4,260			22,471			14,732
Total office revenues	$	58,622		$	47,687		$	213,786		$	165,441
Media & entertainment
Rental	$	5,215		$	5,841		$	22,138		$	23,003
Tenant recoveries	157			566			1,128			1,807
Other property-related revenue	4,723			3,267			15,751			15,072
Other	70			56			612			235
Total media & entertainment revenues	$	10,165		$	9,730		$	39,629		$	40,117
Total revenues	$	68,787		$	57,417		$	253,415		$	205,558
Operating expenses
Office operating expenses	$	20,432		$	19,243		$	78,372		$	63,434
Media & entertainment operating expenses	7,376			6,016			25,897			24,149
General and administrative	9,096			4,757			28,253			19,952
Depreciation and amortization	20,243			16,994			72,216			70,063
Total operating expenses	$	57,147		47,010			$	204,738		$	177,598
Income from operations	$	11,640		$	10,407		$	48,677		$	27,960
Other expense (income)
Interest expense	$	6,413		$	6,797		$	25,932		$	25,470
Interest income	(9		)	(10		)	(30		)	(272		)
Acquisition-related expenses	4,322			454			4,641			1,446
Other income	29			(140		)	(14		)	(99		)
Total other expense (income)	$	10,755		$	7,101		$	30,529		$	26,545
Income (loss) from continuing operations before gain on sale of real estate	$	885		$	3,306		$	18,148		$	1,415
Gain on sale of real estate	—			—			5,538			—
Income (loss) from continuing operations	885			3,306			23,686			1,415
(Loss) income from discontinued operations	—			(37		)	(164		)	1,571
Impairment loss from discontinued operations	—			—			—			(5,580		)
Net (loss) income from discontinued operations	$	—		$	(37	)	$	(164	)	$	(4,009	)
Net income (loss)	$	885		$	3,269		$	23,522		$	(2,594	)
Net income attributable to preferred stock and units	$	(3,195	)	$	(3,200	)	$	(12,785	)	$	(12,893	)
Net income attributable to restricted shares	(68		)	(71		)	(274		)	(300		)
Net loss (income) attributable to non-controlling interest in consolidated entities	6			(78		)	(149		)	321
Net loss (income) attributable to common units in the Operating Partnership	82			(3		)	(359		)	633
Net (loss) income attributable to Hudson Pacific Properties, Inc. common stockholders	$	(2,290	)	$	(83	)	$	9,955		$	(14,833	)
Basic and diluted per share amounts:
Net (loss) income from continuing operations attributable to common stockholders	$	(0.03	)	$	—		$	0.15		$	(0.20	)
Net income (loss) income from discontinued operations	—			—			—			(0.07		)
Net (loss) income attributable to common stockholders’ per share—basic	$	(0.03	)	$	—		$	0.15		$	(0.27	)
Weighted average shares of common stock outstanding—basic	66,512,651			56,271,285			65,792,447			55,182,647
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.500		$	0.500

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

FUNDS FROM OPERATIONS (Unaudited, $ in thousands, except per share data)

	Three Months Ended
Quarter To Date	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Funds From Operations (FFO)⁽¹⁾
Net income (loss)	$	885		$	11,415		$	6,689		$	4,533		$	3,269
Adjustments:
Depreciation and amortization of real estate assets	20,158			17,342			17,835			16,668			16,994
(Gain) / Loss from Sale of Real Estate	—			(5,538		)	—			—			—
FFO attributable to non-controlling interest	(1,254		)	(1,396		)	(1,080		)	(1,091		)	(1,132		)
Net income attributable to preferred stock and units	(3,195		)	(3,195		)	(3,195		)	(3,200		)	(3,200		)
FFO to common stockholders and unit holders	$	16,594		$	18,628		$	20,249		$	16,910		$	15,931
Specified items impacting FFO:
Acquisition-related expenses	$	4,322		$	214		$	—		$	105		$	454
Consulting fee to former executive	1,273			890			1,111			835			—
Supplemental net property tax expenses (savings)	—			1,072			—			—			—
Lease termination revenue	—			—			(1,687		)	—			(753		)
Lease termination non-cash write-off	—			—			77			—			—
FFO (excluding specified items) to common stockholders and unit holders	$	22,189		$	20,804		$	19,750		$	17,850		$	15,632

Weighted average common stock/units outstanding—diluted	69,685			69,126			69,422			66,558			59,220
FFO per common stock/unit—diluted	$	0.24		$	0.27		$	0.29		$	0.25		$	0.27
FFO (excluding specified items) per common stock/unit—diluted	$	0.32		$	0.30		$	0.28		$	0.27		$	0.26

Year To Date	Twelve Months Ended			Nine Months Ended			Six Months Ended			Three Months Ended			Twelve Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Funds From Operations (FFO)⁽¹⁾
Net income (loss)	$	23,522		$	22,637		$	11,222		$	4,533		(2,594		)
Adjustments:
Depreciation and amortization of real estate assets	72,003			51,845			34,503			16,668			70,063
Depreciation and amortization—discontinued operations	—			—			—			—			789
(Gain) / Loss from Sale of Real Estate	(5,538		)	(5,538		)	—			—			5,580
FFO attributable to non-controlling interest	(5,260		)	(4,009		)	(2,171		)	(1,091		)	(2,243		)
Net income attributable to preferred stock and units	(12,785		)	(9,590		)	(6,395		)	(3,200		)	(12,893		)
FFO to common stockholders and unit holders	$	71,942		$	55,345		$	37,159		$	16,910		$	58,702
Specified items impacting FFO:
Acquisition-related expenses	$	4,641		$	319		$	105		$	105		$	1,446
Consulting fee to former executive	4,109			2,836			1,946			835			—
Supplemental net property tax expenses (savings)	809			809			—			—			(797		)
Lease termination revenue	(1,687		)	(1,687		)	(1,687		)	—			(1,591		)
Lease termination non-cash write-off	77			77			77			—			—
FFO (excluding specified items) to common stockholders and unit holders	$	79,891		$	57,699		$	37,600		$	17,850		$	57,760

Weighted average common stock/units outstanding—diluted	68,892			67,933			67,998			66,558			58,165
FFO per common stock/unit—diluted	$	1.04		$	0.81		$	0.55		$	0.25		$	1.01
FFO (excluding specified items) per common stock/unit—diluted	$	1.16		$	0.85		$	0.55		$	0.27		$	0.99

______________________________


(1)	See page 29 for Management’s Statements on Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO).

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

ADJUSTED FUNDS FROM OPERATIONS (Unaudited, $ in thousands, except per share data)

	Three Months Ended
Quarter To Date	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Adjusted Funds From Operations (AFFO)⁽¹⁾
FFO	$	16,594		$	18,628		$	20,249		$	16,910		$	15,931
Adjustments:
Straight-line rent	(3,105		)	(2,737		)	(4,279		)	(2,590		)	(2,178		)
Amortization of above market and below market leases, net	(1,215		)	(1,291		)	(1,456		)	(1,110		)	(1,551		)
Amortization of below market ground lease	62			62			62			62			62
Amortization of lease buy-out costs	144			102			80			53			(1		)
Amortization of deferred financing costs and loan premium/discount, net	460			598			243			223			209
Recurring capital expenditures, tenant improvements and lease commissions	(11,702		)	(8,378		)	(13,729		)	(7,164		)	(11,930		)
Non-cash compensation expense	2,512			1,792			1,978			1,277			1,480
AFFO	$	3,750		$	8,776		$	3,148		$	7,661		$	2,022

Weighted average common stock/units outstanding—diluted	69,685			69,126			69,422			66,558			59,220
AFFO per common stock/unit—diluted	$	0.05		$	0.13		$	0.05		$	0.12		$	0.03
Dividends paid to common stock and unit holders	$	8,932		$	8,679		$	8,679		$	8,676		$	7,446
AFFO payout ratio	238.2		%	98.9		%	275.7		%	113.2		%	368.2		%

Year To Date	Twelve Months Ended			Nine Months Ended			Six Months Ended			Three Months Ended			Twelve Months Ended
	December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014			December 31, 2013
Adjusted Funds From Operations (AFFO)⁽¹⁾
FFO	$	71,942		$	55,345		$	37,159		$	16,910		$	58,702
Adjustments:
Straight-line rent	(12,753		)	(9,435		)	(6,869		)	(2,590		)	(9,692		)
Amortization of prepaid rent⁽²⁾	—			—			—			—			109
Amortization of above market and below market leases, net	(5,081		)	(3,830		)	(2,566		)	(1,110		)	(5,734		)
Amortization of below market ground lease	248			186			124			62			247
Amortization of lease buy-out costs	379			235			133			53			36
Amortization of deferred financing costs and loan premium/discount, net	1,525			1,065			466			223			824
Recurring capital expenditures, tenant improvements and lease commissions	(40,984		)	(29,282		)	(20,893		)	(7,164		)	(47,764		)
Non-cash compensation expense	7,559			5,047			3,255			1,277			6,454
AFFO	$	22,835		$	19,331		$	10,809		$	7,661		$	3,182

Weighted average common stock/units outstanding—diluted	68,892			67,933			67,998			66,558			58,165
AFFO per common stock/unit—diluted	$	0.33		$	0.28		$	0.16		$	0.12		$	0.05
Dividends paid to common stock and unit holders	$	34,966		$	26,034		$	17,355		$	8,676		$	29,607
AFFO payout ratio	153.1		%	134.7		%	160.6		%	113.2		%	930.5		%

______________________________

(1)

See page 29 for Management’s Statements on Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO). AFFO excludes amounts attributable to non-controlling interest in Consolidated Entities. For purposes of the three-month and year-to-date periods ending December 31, 2013, March 31, 2014, and June 30, 2014, AFFO amounts appearing in our Supplemental Operating and Financial Data reports issued for those periods included amounts attributable to the non-controlling interest in Consolidated Entities. AFFO amounts in this Supplemental Operating and Financial Data report reflect an increase in AFFO compared to amounts previously reported owing to the exclusion of amounts attributable to non-controlling interest in Consolidated Entities for all periods presented.


(2)	Represents the difference between rental revenue recognize in accordance with accounting principles generally accepted in the United States (GAAP) based on the amortization of the prepaid rent liability relating to the KTLA lease at our Sunset Bronson property compared to scheduled cash rents received in connection with such prepayment.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

DEBT SUMMARY

(Unaudited, $ in thousands)

The following table sets forth information with respect to our outstanding indebtedness as of December 31, 2014.



					Annual			Balance at
Debt	Outstanding			Interest Rate⁽¹⁾	Debt Service⁽¹⁾		Maturity Date	Maturity
Unsecured revolving credit facility	$	130,000		LIBOR+1.15% to 1.55%	$	—	9/23/2018	$	130,000
Unsecured term loan	150,000			LIBOR+1.30% to 1.90%			9/23/2019	150,000
Mortgage loan secured by 275 Brannan	15,000			LIBOR+2.00%	—		10/5/2015	15,000
Mortgage loan secured by Pinnacle II⁽²⁾	87,421			6.313%	6,754		9/6/2016	85,301
Mortgage loan secured by 901 Market⁽³⁾	49,600			LIBOR+2.25%	—		10/31/2016	49,600
Mortgage loan secured by Element LA⁽⁴⁾	59,490			LIBOR+1.95%	—		11/1/2017	59,490
Mortgage loan secured by Sunset Gower/Sunset Bronson⁽⁵⁾	97,000			LIBOR+2.25%	—		2/11/2018	97,000
Mortgage loan secured by Rincon Center⁽⁶⁾	104,126			5.134%	7,195		5/1/2018	97,673
Mortgage loan secured by Met Park North⁽⁷⁾	64,500			LIBOR+1.55%	—		8/1/2020	64,500
Mortgage loan secured by 10950 Washington⁽⁸⁾	28,866			5.316%	2,003		3/11/2022	24,632
Mortgage loan secured by Pinnacle I⁽⁹⁾	129,000			3.954%	5,172		11/7/2022	117,190
Subtotal	$	915,003
Unamortized loan premium, net⁽¹⁰⁾	3,056
Total, excluding mortgage loan on real estate held for sale	$	918,059
Mortgage loan on real estate held for sale:
Mortgage loan secured by First Financial⁽¹¹⁾	$	42,449		4.58%	2,639		2/1/2022	36,799
Total	$	960,508

Note Receivable
Mortgage loan secured by a real estate property	$	28,528		11.000%	$	3,182	8/22/2016	$	28,528
Unamortized commitment fee	(260		)
	$	28,268

______________________________


(1)	Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs.

(2)

This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II property to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule.


(3)	On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49,600 upon closing, with the ability to draw up to an additional $11,900 for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property.


(4)	On November 24, 2014 we amended our construction loan for Element LA to, among other things, increase availability from $65,500 to $102,406 for budgeted site-work, construction of a parking garage, base building, tenant improvement, and leasing commission costs associated with the renovation and lease-up of the property.

(5)

On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50,000 of the loan through February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42,000 of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92,000 to $97,000, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018.


(6)	This loan is amortizing based on a 30-year amortization schedule.


(7)	This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020.


(8)	This loan is amortizing based on a 30-year amortization schedule.


(9)	This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule, for total annual debt service of $7,349.


(10)	Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with Pinnacle II.


(11)	Beginning with the payment made March 1, 2014, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule.

PORTFOLIO DATA

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

STABILIZED OFFICE SUMMARY⁽¹⁾



		Percent of Total		Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾		Monthly Rent Per Square Foot
Location	Square Feet⁽²⁾	Percent of Total		Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾		Monthly Rent Per Square Foot
SAME-STORE
San Francisco
Rincon Center	580,850	12.4	%	90.1	%	90.7	%	$	21,784,049	$	41.62	$	3.47
1455 Market Street	1,025,833	22.0		92.1		99.4		25,777,928		27.29		2.27
875 Howard Street	286,270	6.1		99.4		99.4		7,404,370		26.03		2.17
222 Kearny Street	148,797	3.2		84.6		92.2		4,829,812		38.35		3.20
625 Second Street	138,080	3.0		73.8		73.8		4,707,950		46.22		3.85
Subtotal	2,179,830	46.7	%	90.8	%	95.0	%	$	64,504,109	$	32.57	$	2.71
Los Angeles
Technicolor Building	114,958	2.5	%	100.0	%	100.0	%	4,549,302		$	39.57	$	3.30
Del Amo Office Building	113,000	2.4		100.0		100.0		3,069,070		27.16		2.26
9300 Wilshire	61,224	1.3		95.3		95.3		2,439,729		41.81		3.48
10950 Washington	159,024	3.4		100.0		100.0		5,376,405		33.81		2.82
604 Arizona	44,260	0.9		100.0		100.0		1,867,878		42.20		3.52
6922 Hollywood	205,523	4.4		92.2		92.2		8,300,620		43.81		3.65
10900 Washington	9,919	0.2		100.0		100.0		456,657		46.04		3.84
Pinnacle I	393,777	8.4		97.4		97.4		15,947,196		41.60		3.47
Subtotal	1,101,685	23.6	%	97.3	%	97.3	%	$	42,006,857	$	39.17	$	3.26
Total Same-Store	3,281,515	70.3	%	93.0	%	95.8	%	$	106,510,966	34.89		$	2.91
NON-SAME-STORE
Seattle
First & King	472,223	10.1	%	95.7	%	96.6	%	$	10,213,811	$	22.60	$	1.88
Met Park North	190,748	4.1		95.4		95.4		4,835,979		26.58		2.22
Northview	182,009	3.9		83.4		84.5		3,027,250		19.94		1.66
Merrill Place	193,153	4.1		70.7		70.7		3,407,501		24.96		2.08
Subtotal	1,038,133	22.2	%	88.8	%	89.4	%	$	21,484,541	$	23.30	$	1.94
San Francisco
275 Brannan Street	54,673	1.2	%	100.0	%	100.0	%	$	2,984,599	$	54.59	$	4.55
Subtotal	54,673	1.2	%	100.0	%	100.0	%	$	2,984,599	$	54.59	$	4.55
Los Angeles
Pinnacle II	231,864	5.0	%	99.2	%	99.2	%	$	8,789,091	$	38.21	$	3.18
3401 Exposition	63,376	1.4		100.0		100.0		2,547,715		40.20		3.35
Subtotal	295,240	6.3	%	99.4	%	99.4	%	$	11,336,806	$	38.64	$	3.22
Total Non-Same-Store	1,388,046	29.7	%	91.5	%	92.0	%	$	35,805,946	$	28.19	$	2.35
TOTAL	4,669,561	100.0	%	92.6	%	94.6	%	$	142,316,913	$	32.92	$	2.74

_____________________________

(1)

Our stabilized portfolio excludes undeveloped land, development and redevelopment properties currently under construction or committed for construction, “lease-up” properties and properties “held-for-sale.” As of December 31, 2014, we had one office development property under construction, three office redevelopment properties under construction, one lease-up property and one property held-for-sale, see page 13. We define “lease-up” properties as properties we recently purchased, developed, or redeveloped that have not yet reached 92% occupancy and are within one year following purchase and cessation of major construction activities, as applicable.


(2)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing.


(3)	Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2014, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.

(4)

Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2014, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of December 31, 2014. Annualized base rent does not reflect tenant reimbursements.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

DEVELOPMENT, REDEVELOPMENT, LEASE-UP PROPERTIES, AND PROPERTIES HELD-FOR-SALE SUMMARY⁽¹⁾



										Annualized Base Rent Per Square Foot⁽⁴⁾		Monthly Rent Per Square Foot
		Percent of Total		Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾
Location	Square Feet⁽²⁾	Percent of Total		Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾
DEVELOPMENT
Hollywood
Icon	413,000	32.9	%	—	%	—	%	$	—	$	—	$	—
Total Development	413,000	32.9	%	—	%	—	%	$	—	$	—	$	—

REDEVELOPMENT
Los Angeles
Element LA⁽⁵⁾	284,037	22.6	%	—	%	100.0	%	$	—	$	—	$	—
3402 Pico	39,136	3.1		—		—		—		—		—
12655 Jefferson	88,215	7.0		—		—		—		—		—
Total Redevelopment	411,388	32.8	%	—	%	69.0	%	$	—	$	—	$	—

LEASE-UP
San Francisco
901 Market Street	206,199	16.4	%	80.3	%	100.0	%	$	7,771,318	$	46.92	$	3.91
Total Lease-Up	206,199	16.4	%	80.3	%	100.0	%	$	7,771,318	$	46.92	$	3.91

HELD-FOR-SALE
Los Angeles
First Financial	223,679	17.8	%	93.2	%	93.2	%	$	7,197,502	$	34.53	$	2.88
Total Held-For-Sale	223,679	17.8	%	93.2	%	93.2	%	$	7,197,502	$	34.53	$	2.88
TOTAL	1,254,266	100.0	%	29.8	%	55.7	%	$	14,968,820	$	40.02	$	3.33

______________________________


(1)	Excludes stabilized properties, see page 12.


(2)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing.


(3)	Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2014, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.

(4)

Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2014, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced lease as of December 31, 2014. Annualized base rent does not reflect tenant reimbursements.


(5)	Element LA is subject to a 15-year lease with Riot Games Inc. for all 284,037 combined square feet. The lease was executed on November 4, 2013. Commencement of the lease is scheduled for the second quarter of 2015.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

LAND PROPERTIES SUMMARY



Location	Square Feet⁽¹⁾	Percent of Total
Seattle
Merrill Place	140,000	9.7	%
Subtotal	140,000	9.7	%

Los Angeles
Sunset Bronson—Lot A	273,913	18.9	%
Sunset Gower— Redevelopment	423,396	29.2
Element LA	500,000	34.5
3402 Pico	110,864	7.7
Subtotal	1,308,173	90.3	%

TOTAL	1,448,173	100.0	%

______________________________


(1)	Square footage for land assets represents management’s estimate of developable square feet, the majority of which remains subject to entitlement approvals that have not yet been obtained.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

MEDIA & ENTERTAINMENT PORTFOLIO SUMMARY



Property	Square Feet⁽¹⁾	Percent of Total		Percent Leased⁽²⁾		Annual Base Rent⁽³⁾		Annual Base Rent Per Leased Square Foot⁽⁴⁾
Sunset Gower	570,470	65.6	%	69.1	%	$	12,907,268	$	32.72
Sunset Bronson	299,098	34.4		76.2		8,918,814		37.61

TOTAL	869,568	100.0	%	71.6	%	$	21,826,082	$	34.56

______________________________

(1)

Square footage for media and entertainment properties has been determined by management based upon estimated gross square feet which, may be less or more than BOMA rentable area. Square footage may change over time due to re-measurement or re-leasing. During the fourth quarter ended December 31, 2014, the Company raised approximately 14,625 square feet at its Sunset Bronson property in connection with its ICON development.


(2)	Percent leased for media and entertainment properties is the average percent leased for the 12 months ended December 31, 2014.


(3)	Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended December 31, 2014, excluding tenant reimbursements.


(4)	Annual base rent per leased square foot for the media and entertainment properties is calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2014.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

CURRENT VALUE CREATION DEVELOPMENT PROJECTS

(Unaudited, $ in thousands, except square feet)

Estimated Construction Period

Project Costs⁽¹⁾

Location

Start Date

Estimated Completion Date

Estimated

Stabilization Date⁽²⁾

Estimated Rentable Square Feet⁽³⁾

Total %Leased

Project Costs
as of 12/31/2014

Total Estimated Project Costs

Estimated Initial Stabilized Yield on Project Costs⁽⁴⁾

UNDER CONSTRUCTION

Los Angeles

Element LA⁽⁵⁾

Los Angeles

Q3-2013

Q2-2015

284,037

100

170,041

189,740

8.1%

Icon⁽⁶⁾

Hollywood

Q4-2014

Q4-2016

Q3-2018

413,000

N/A

12,979

191,709

8.1%

Total Under Construction

697,037

183,020

381,449

FUTURE DEVELOPMENT PIPELINE

Los Angeles

Sunset Bronson—Lot A

Hollywood

TBD

273,913

N/A

TBD

Sunset Gower— Redevelopment

Hollywood

TBD

423,396

N/A

TBD

Element LA

Los Angeles

TBD

500,000

N/A

TBD

3402 Pico⁽⁷⁾

Santa Monica

TBD

150,000

N/A

TBD

12655 Jefferson

Playa Del Rey

TBD

88,215

N/A

TBD

Seattle

Merrill Place

Seattle

TBD

140,000

N/A

TBD

Total Future Development Pipeline

1,575,524

______________________________


(1)	Project costs exclude interest costs capitalized in accordance with Accounting Standards Codification (ASC) 835-20-50-1, personnel costs capitalized in accordance with ASC 970-360-25 and operating expenses capitalized in accordance with ASC 970-340.


(2)	Based on management’s estimate of stabilized occupancy (92%).


(3)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to remeasurement or releasing.

(4)

Estimated initial stabilized yield on project costs is calculated as the quotient of the estimated amounts of NOI and our investment in the property once the project has reached stabilized occupancy (92%) and initial rental concessions, if any, have elapsed. Our estimated initial stabilized yield excludes the impact of leverage. Our cash rents related to our value-creation projects are expected to increase over time and our average cash yields are expected, in general, to be greater than our estimated initial stabilized yields on a cash basis. Our estimates for initial cash yields, and total costs at completion, represent our initial estimates at the commencement of the project. We expect to update this information upon completion of the project, or sooner if there are significant changes to the expected project yields or costs.


(5)	Element LA is subject to a 15-year lease with Riot Games, Inc. for all 284,037 combined square feet. The lease was executed on November 4, 2013. Commencement of the lease is scheduled for the second quarter of 2015.


(6)	Total estimated project costs for Icon excludes land.


(7)	Estimated rentable square feet for 3402 Pico includes an 39,136-square-foot existing vacant building.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾

(Unaudited, $ in thousands)



	Three Months Ended December 31,								Year Ended December 31,
	2014			2013			% change		2014				2013				% change
Same-store office statistics ⁽²⁾
Number of properties	13			13					13				13
Rentable square feet	3,281,515			3,266,632					3,281,515				3,266,632
Ending % leased	95.8		%	95.0		%	0.8	%	95.8		%		95.0		%		0.8	%
Ending % occupied	93.0		%	88.3		%	5.3	%	93.0		%		88.3		%		5.3	%
Quarterly average % occupied	92.5		%	87.2		%	6.1	%	92.2		%		88.6		%		4.1	%
Same-store media statistics ⁽³⁾
Number of properties	2			2					2				2
Rentable square feet	869,568			869,568					869,568				869,568
Average % occupied for the period	70.4		%	70.7		%	(0.4	)%	72.2		%		70.4		%		2.6	%

SAME-STORE ANALYSIS — GAAP BASIS

	Three Months Ended December 31,								Year Ended December 31,
	2014			2013			% change		2014				2013				% change
Same-store net operating income — GAAP basis
Total office revenues	$	38,492		$	32,370		18.9	%	$	136,546		⁽⁴⁾⁽⁵⁾	$	126,981		⁽⁶⁾	7.5	%
Total media revenues	10,165			9,730			4.5		39,629				40,117				(1.2	)
Total revenues	$	48,657		$	42,100		15.6	%	$	176,175			$	167,098			5.4	%

Total office expense	$	14,381		$	13,568		6.0	%	$	52,991		⁽⁷⁾	$	50,141			5.7	%
Total media expense	7,376			6,016			22.6		25,897				24,946			⁽⁸⁾	3.8
Total property expense	$	21,757		$	19,584		11.1	%	$	78,888			$	75,087			5.1	%

Same-store office net operating income — GAAP basis	$	24,111		$	18,802		28.2	%	$	83,555			$	76,840			8.7	%
NOI Margin	62.6		%	58.1		%	4.5	%	61.2		%		60.5		%		0.7	%
Same-store media net operating income — GAAP basis	$	2,789		$	3,714		(24.9	)%	$	13,732			$	15,171			(9.5	)%
NOI Margin	27.4		%	38.2		%	(10.8	)%	34.7		%		37.8		%		(3.1	)%
Same-store total property net operating income — GAAP basis	$	26,900		$	22,516		19.5	%	$	97,287			$	92,011			5.7	%
NOI Margin	55.3		%	53.5		%	1.8	%	55.2		%		55.1		%		0.1	%

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾— CONTINUED

(Unaudited, $ in thousands)



SAME-STORE ANALYSIS — CASH BASIS

	Three Months Ended December 31,								Year Ended December 31,
	2014			2013			% change		2014				2013				% change
Same-store net operating income — Cash basis
Total office revenues	$	35,555		$	30,399		17.0	%	$	124,713		⁽⁴⁾⁽⁵⁾	$	117,627		⁽⁶⁾	6.0	%
Total media revenues	10,147			9,726			4.3		39,665				40,064				(1.0	)
Total revenues	$	45,702		$	40,125		13.9	%	$	164,378			$	157,691			4.2	%

Total office expense	$	14,319		$	13,506		6.0	%	$	52,744		⁽⁷⁾	$	49,894			5.7	%
Total media expense	7,376			6,016			22.6		25,897				24,946			⁽⁸⁾	3.8
Total property expense	$	21,695		$	19,522		11.1	%	$	78,641			$	74,840			5.1	%

Same-store office net operating income — Cash basis	$	21,236		$	16,893		25.7	%	$	71,969			$	67,733			6.3	%
NOI Margin	59.7		%	55.6		%	4.1	%	57.7		%		57.6		%		0.1	%
Same-store media net operating income — Cash basis	$	2,771		$	3,709		(25.3	)%	$	13,768			$	15,118			(8.9	)%
NOI Margin	27.3		%	38.1		%	(10.8	)%	34.7		%		37.7		%		(3.0	)%
Same-store total property net operating income — Cash basis	$	24,007		$	20,602		16.5	%	$	85,737			$	82,851			3.5	%
NOI Margin	52.5		%	51.3		%	1.2	%	52.2		%		52.5		%		(0.3	)%

______________________________

(1)“Same store” defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2013 and still owned and included in the stabilized portfolio as of December 31, 2014.

(2)See page 12 for same-store office properties.

(3)See page 15 for same-store media properties.

(4)Amount excludes one-time $3,340 tenant recoveries relating to prior year property tax expenses disclosed in the Q3-2014 earnings release.

(5)Amount excludes a one-time $1,610 early lease termination fee income disclosed in the Q2-2014 earnings release.

(6)Amount excludes a one-time $1,082 early lease termination fee income disclosed in the Q1-2013 earnings release.

(7)Amount excludes one-time $4,201 property tax expenses disclosed in the Q3-2014 earnings release.

(8)Amount excludes a one-time $797 property tax savings disclosed in the Q1-2013 earnings release.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

RECONCILIATION OF SAME-STORE PROPERTY NET OPERATING INCOME TO GAAP NET INCOME (LOSS)

(Unaudited, $ in thousands)



	Three Months Ended December 31,						Year Ended December 31,
	2014			2013			2014			2013
Reconciliation to net income
Same-store office revenues — Cash basis	$	35,555		$	30,399		$	124,713		$	117,627
GAAP adjustments to office revenues — Cash basis	2,937			1,971			11,833			9,354
Early lease termination fee and tenant recovery adjustments to office revenues	—			—			4,950			1,082
Same-store office revenues — GAAP basis	$	38,492		$	32,370		$	141,496		$	128,063

Same-store media revenues — Cash basis	$	10,147		$	9,726		$	39,665		$	40,064
GAAP adjustments to media revenues — Cash basis	18			4			(36		)	53
Same-store media revenues — GAAP basis	$	10,165		$	9,730		$	39,629		$	40,117

Same-store property revenues — GAAP basis	$	48,657		$	42,100		$	181,125		$	168,180

Same-store office expenses — Cash basis	$	14,319		$	13,506		$	52,744		$	49,894
GAAP adjustments to office expenses — Cash basis	62			62			247			247
Property tax expense adjustments	—			—			4,201			—
Same-store office expenses — GAAP basis	$	14,381		$	13,568		$	57,192		$	50,141

Same-store media expenses — Cash basis	$	7,376		$	6,016		$	25,897		$	24,946
Property tax savings adjustment to media expenses	—			—			—			(797		)
Same-store media expenses — GAAP basis	$	7,376		$	6,016		$	25,897		$	24,149

Same-store property expenses — GAAP basis	$	21,757		$	19,584		$	83,089		$	74,290

Same-store net operating income — GAAP basis	$	26,900		$	22,516		$	98,036		$	93,890
Non-same store GAAP net operating income	14,079			9,642			51,110			24,085
General and administrative	(9,096		)	(4,757		)	(28,253		)	(19,952		)
Depreciation and amortization	(20,243		)	(16,994		)	(72,216		)	(70,063		)
Income from operations	$	11,640		$	10,407		$	48,677		$	27,960
Interest expense	(6,413		)	(6,797		)	(25,932		)	(25,470		)
Interest income	9			10			30			272
Acquisition-related expenses	(4,322		)	(454		)	(4,641		)	(1,446		)
Other expense	(29		)	140			14			99
Gain on sale of real estate	—			—			5,538			—
Impairment loss from discontinued operations	—			—			—			(5,580		)
Net loss from discontinued operations	—			(37		)	(164		)	1,571
Net income (loss)	$	885		$	3,269		$	23,522		$	(2,594	)

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

NET OPERATING INCOME DETAIL

Three Months Ended December 31, 2014

(Unaudited, $ in thousands)



	Same Store Office Properties⁽¹⁾			Non-Same Store Office Properties⁽²⁾			Development/ Redevelopment⁽³⁾			Lease-Up Properties⁽⁴⁾			Held-for-Sale⁽⁵⁾			Media & Entertainment⁽⁵⁾			Total Properties
Revenue
Rents
Cash	$	24,241		$	9,219		$	—		$	1,672		$	1,960		$	5,197		$	42,289
GAAP Revenue	2,937			1,343			—			600			(55		)	18			4,843
Total Rents	$	27,178		$	10,562		$	—		$	2,272		$	1,905		$	5,215		$	47,132

Tenant Reimbursements	$	7,920		$	2,561		$	—		$	171		$	128		$	157		$	10,937
Parking and Other	3,394			1,213			(6		)	—			280			4,793			9,674
Total Revenue	$	38,492		$	14,336		$	(6	)	$	2,443		$	2,313		$	10,165		$	67,743

Property Operating Expenses	14,381			4,160			—			1,081			805			7,376			27,803
Property GAAP Net Operating Income	$	24,111		$	10,176		$	(6	)	$	1,362		$	1,508		$	2,789		$	39,940

Square Feet	3,281,515			1,388,046			824,388			206,199			223,679			869,568			6,793,395
Ending % Leased	95.8		%	92.0		%	34.5		%	100.0		%	93.2		%	70.1		%	84.3		%
Ending % Occupied	93.0		%	91.5		%	—		%	80.3		%	93.2		%	70.1		%	78.1		%
NOI Margin	62.6		%	71.0		%	100.0		%	55.8		%	65.2		%	27.4		%	59.0		%
Property GAAP Net Operating Income	$	24,111		$	10,176		$	(6	)	$	1,362		$	1,508		$	2,789		$	39,940
Less : GAAP Revenue	(2,937		)	(1,343		)	—			(600		)	55			(18		)	(4,843		)
Add : GAAP Expense	62			—			—			—			—			—			62
Property Cash Net Operating Income	$	21,236		$	8,833		$	(6	)	$	762		$	1,563		$	2,771		$	35,159

Net Income Reconciliation	Q4 - 2014
Property GAAP Net Operating Income	$	39,940
Broadway Note	1,342
Other Income (Expense)/Inter-Company Eliminations	(303		)
Total GAAP Net Operating Income	$	40,979
General and administrative	(9,096		)
Depreciation and amortization	(20,243		)	(1) See page 12 for same-store office properties.
Income from Operations	$	11,640		(2) See page 12 for non-same-store properties.
Interest expense	(6,413		)	(3) See page 13 for development/redevelopment and held for sale properties.
Interest income	9			(4) See page 13 for lease-up properties.
Acquisition-related expenses	(4,322		)	(5) See page 15 for same-store media and held-for-sale properties.
Other expenses (income)	(29		)
Gain on sale of real estate	—
Discontinued operations	—
Net Income	$	885

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information



OFFICE PORTFOLIO UNCOMMENCED LEASES DETAIL
	New Lease Terms											Expiring Lease Terms
Property	SF⁽¹⁾	Estimated Lease Start Date⁽²⁾	Free Rent Period⁽³⁾	Estimated Rent Start Date⁽²⁾	Starting Base Rents⁽⁴⁾		New Lease Recovery Structure⁽⁵⁾	Term In Months	Estimated Lease Expiration Date⁽²⁾	TI + LC		Square Footage Subject to Backfill	Expiring Base Rents⁽⁶⁾		Estimated Lease Expiration Date⁽²⁾	Expiring Lease Recovery Structure⁽⁵⁾
Same-Store Office
Rincon Center	1,464	11/20/2014	—	2/18/2015	$	42.00	NNN	60	2/29/2020	$	37.45	N/A	N/A		N/A	N/A
222 Kearny	4,136	12/12/2014	2	3/15/2015	$	53.00	FSG	62	4/30/2020	$	46.20	4,136	$	35.00	6/30/2014	FSG
Rincon Center	2,266	1/1/2015	—	4/1/2015	$	40.00	NNN	120	3/31/2025	$	65.14	N/A	N/A		N/A	N/A
6922 Hollywood	15,171	1/17/2015	5	3/3/2015	$	43.20	FSG	42	9/14/2018	$	24.11	14,220	$	39.34	12/31/2014	FSG
1455 Market	4,506	1/20/2015	—	1/20/2015	$	42.00	MG2	109	2/29/2024	$	66.96	4,506	$	12.73	12/31/2013	NNN
1455 Market	91,800	2/28/2015	—	2/28/2015	$	46.00	MG2	108	2/29/2024	$	66.96	95,680	$	12.03	10/1/2014	NNN
222 Kearny	1,912	3/15/2015	—	3/15/2015	$	60.00	NNN	120	3/14/2025	$	82.55	N/A	N/A		N/A	N/A
222 Kearny	5,180	3/15/2015	2	3/15/2015	$	52.00	FSG	62	4/30/2020	$	69.01	N/A	N/A		N/A	N/A
1455 Market	24,438	6/19/2015	3	6/19/2015	$	46.00	MG2	76	10/31/2021	$	68.00	22,390	$	35.00	12/31/2014	NNN
Rincon Center	2,868	8/1/2015	9	5/1/2016	$	47.00	MG3	111	7/31/2025	$	83.56	2,851	$	50.15	7/14/2015	FSG
Rincon Center	4,144	5/1/2017	9	2/1/2018	$	48.00	MG3	90	7/31/2025	$	83.56	4,144	$	37.15	4/14/2017	FSG
Non Same-Store
Northview	1,989	10/1/2014	1	1/1/2015	$	18.75	NNN	61	1/31/2020	$	32.48	N/A	N/A		N/A	N/A
505 First	4,141	2/15/2015	4	4/15/2015	$	22.00	NNN	65	9/11/2020	$	72.92	N/A	N/A		N/A	N/A
Development/Redevelopment
Element LA	284,037	4/1/2015	15	10/1/2015	$	52.67	NNN	180	3/31/2030	$	103.00	N/A	N/A		N/A	N/A
Lease-Up Assets
901 Market	40,558	5/19/2015	—	5/19/2015	$	40.17	NNN	181	5/31/2030	$	84.88	N/A	N/A		N/A	N/A

______________________________


(1)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing.


(2)	Represents management's estimate for each date based on lease terms and estimates for decommissioning space and constructing tenant improvements, as applicable.


(3)	Free Rent is defined as the number of partial or full months tenant is not obligated to pay base rent payments. Free Rent can be applied (i) over the term of the lease, or (ii) at lease commencement.

(4)

Stated per leased square foot. For uncommenced leases, calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease commencement date, and (ii) 12, by (iii) the leased square footage. For commenced leases, calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2014, and (ii) 12, by (iii) the leased square footage. Base rents do not include tenant reimbursements.

(5)

Recovery structure refers to the method of recovering property operating expenses under each of the referenced leases, as follows: (a) NNN refers to the tenant's obligation to bear its ratable share of all property operating expenses based on the relative square footage of the lease; (b) FSG refers to the tenant's obligation to bear its ratable share of increases in all property operating expenses above the amount of property operating expenses in the tenant's respective base year; (c) MG1 refers to the tenant's obligation to bear its ratable share of increases in all property operating expenses above the amount of property operating expenses in the tenant's respective base year, with the exception of those operating expenses for operating grounds; (d) MG2 refers to the tenant's obligation to bear its ratable share of increases in all property operating expenses above the amount of property operating expenses in the tenant's respective base year, with the exception of those operating expenses for janitorial and electricity that are borne by the tenant on a direct basis; and (e) MG3 refers to the tenant’s obligation to bear its ratable share of increases in all property operating expenses above the amount of property operating expenses in the tenant's respective base year, with the exception of those operating expenses for electricity that are borne by the tenant on a direct basis.


(6)	Calculated by dividing the product of (i) base rental payments (defined as cash base rents (before abatements)) for the month of the expiration date, and (ii) 12, by (iii) the leased square footage.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information



OFFICE PORTFOLIO COMMENCED LEASES WITH NON-RECURRING, UP FRONT ABATEMENTS
	New Lease Terms											Expiring Lease Terms
Property	SF⁽¹⁾	Lease Start Date	Free Rent Period⁽²⁾	Rent Start Date	Starting Base Rents⁽³⁾		New Lease Recovery Structure⁽⁴⁾	Term In Months	Lease Expiration Date	TI + LC		Square Footage Subject to Backfill	Expiring Base Rents⁽⁵⁾			Lease Expiration Date	Expiring Lease Recovery Structure⁽⁵⁾
Same-Store Office
Rincon Center	41,614	5/1/2014	9	2/1/2015	$	45.00	MG3	156	4/30/2027	$	83.56	37,230	$	38.50		8/31/2013	FSG
Rincon Center	18,075	5/1/2014	9	2/1/2015	$	45.00	MG3	156	4/30/2027	$	83.56	N/A	N/A			N/A	N/A
1455 Market	2,157	7/1/2014	7	2/1/2015	$	30.00	MG2	111	9/27/2023	$	79.00	N/A	N/A			N/A	N/A
Rincon Center	76,004	8/1/2014	9	5/1/2015	$	46.00	MG3	132	7/31/2025	$	83.56	76,320	$	32.93	⁽⁶⁾	Various	Various
Pinnacle I	17,928	8/25/2014	15	8/25/2014	$	42.00	FSG	124	12/31/2024	$	47.00	N/A	N/A			N/A	N/A
Non-Same Store Office
3401 Exposition⁽⁷⁾	63,376	9/15/2014	3	9/15/2014	$	40.20	NNN	144	9/30/2026	$	116.04	N/A	N/A			N/A	N/A

______________________________


(1)	Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing.


(2)	Free Rent is defined as the number of partial or full months tenant is not obligated to pay base rent payments. Free Rent can be applied (i) over the term of the lease, or (ii) at lease commencement.

(3)

(4)


(5)	Calculated by dividing the product of (i) base rental payments (defined as cash base rents (before abatements)) for the month of the expiration date, and (ii) 12, by (iii) the leased square footage.


(6)	Based on the weighted average base rents and expiration dates of multiple expiring leases.


(7)	Tenant shall receive base rent abatement for the second and third months of the initial lease term and $16,666.66 towards the monthly base rent due for the fourth through fifteenth month of the initial lease term.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

OFFICE PORTFOLIO LEASING ACTIVITY



	Three Months Ended December 31, 2014			Year Ended December 31, 2014
Total Gross Leasing Activity
Rentable square feet	211,103			631,734
Gross New Leasing Activity
Rentable square feet	49,418			398,402
New cash rate	$	34.46		$	43.11
Gross Renewal Leasing Activity
Rentable square feet	161,685			233,332
Renewal cash rate	$	43.13		$	42.40
Total Leases Expired and Terminated
Contractual (scheduled) expiration (square feet)	12,684			271,525
Early termination (square feet)	99,285			164,384
Total	111,969			435,909
Net Absorption
Leased rentable square feet	(62,551		)	(37,507		)
Cash Rent Growth⁽¹⁾
Expiring Rate	$	36.45		$	30.27
New/Renewal Rate	$	41.40		$	43.87
Change	13.6		%	44.9		%
Straight-Line Rent Growth⁽²⁾
Expiring Rate	$	37.05		$	29.63
New/Renewal Rate	$	42.25		$	46.39
Change	14.1		%	56.6		%
Weighted Average Lease Terms
New (in months)	35			80
Renewal (in months)	25			26



Tenant Improvements and Leasing Commissions⁽³⁾	Lease Transaction Costs Per Square Foot
	Three Months Ended December 31, 2014				Year Ended December 31, 2014
	Total		Annual		Total		Annual
New leases	$	26.25	$	8.87	$	56.47	$	7.30
Renewal leases	$	3.69	$	1.77	$	3.53	$	1.63
Blended	$	8.97	$	3.92	$	46.39	$	8.17

______________________________


(1)	Represents a comparison between initial stabilized cash rents on new and renewal leases as compared to the expiring cash rents in the same space. New leases are only included if the same space was leased within the previous 12 months.


(2)	Represents a comparison between initial straight-line rents on new and renewal leases as compared to the straight-line rents on expiring leases in the same space. New leases are only included if the same space was leased within the previous 12 months.


(3)	Represents per square foot weighted average lease transaction costs based on the lease executed in the current quarter in our properties.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

QUARTERLY OFFICE LEASE EXPIRATIONS — NEXT EIGHT QUARTERS

	Q1 2015⁽¹⁾				Q2 2015			Q3 2015				Q4 2015			Q1 2016			Q2 2016			Q3 2016			Q4 2016
Location	Expiring SF	Rent/sf⁽²⁾			Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾			Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾
SAME-STORE
San Francisco
Rincon Center	2,286	$	17.74		6,292	$	21.47	8,382	$	47.50	⁽³⁾	1,617	$	26.79	3,332	$	35.00	13,651	$	32.96	2,959	$	34.97	3,515	$	37.08
1455 Market	21,717	25.24		⁽⁴⁾	—	—		—	—			114,322	9.09		—	—		875	42.17		—	—		—	—
875 Howard	—	—			—	—		—	—			—	—		—	—		—	—		6,031	35.00		—	—
222 Kearny	—	—			13,180	35.09		8,655	53.42			—	—		—	—		26,257	28.61		13,293	37.51		—	—
625 Second	35,151	41.50			—	—		—	—			—	—		—	—		6,834	44.29		—	—		—	—
Subtotal	59,154	$	34.61		19,472	$	30.69	17,037	$	50.51		115,939	$	9.33	3,332	$	35.00	47,617	$	32.36	22,283	$	36.49	3,515	$	37.08
Los Angeles
Technicolor	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Del Amo	—	—			—	—		—	—			—	—		—	—		—	—		—	—		—	—
9300 Wilshire	6,171	37.62			—	—		5,655	43.87			10,013	40.54		4,364	42.62		2,731	45.89		—	—		2,853	39.12
10950 Washington	—	—			—	—		—	—			—	—		—	—		30,300	28.04		—	—		—	—
604 Arizona	—	—			—	—		—	—			—	—		—	—		—	—		—	—		—	—
6922 Hollywood	28,770	39.10		⁽⁵⁾	—	—		—	—			—	—		12,820	39.36		—	—		3,378	40.65		—	—
10900 Washington	—	—			—	—		—	—			—	—		—	—		—	—		—	—		—	—
Pinnacle I	—	—			3,209	43.80		—	—			—	—		—	—		—	—		109,323	41.80		9,005	43.20
Subtotal	34,941	$	38.84		3,209	$	43.80	5,655	$	43.87		10,013	$	40.54	17,184	$	40.19	33,031	$	29.52	112,701	$	41.76	11,858	$	42.22
NON-SAME-STORE
Seattle
First & King	1,334	$	4.50		—	$	—	7,524	$	28.00		—	$	—	11,442	$	20.16	—	$	—	—	$	—	—	$	—
Met Park North	—	—			—	—		—	—			—	—		—	—		—	—		—	—		600	43.70
Northview	3,096	19.00			1,722	20.39		—	—			—	—		—	—		59,022	18.12		—	—		—	—
Merrill Place	—	—			—	—		5,203	25.58			26,001	23.69		—	—		—	—		11,995	26.21		8,349	22.15
Subtotal	4,430	$	14.63		1,722	$	20.39	12,727	$	27.01		26,001	$	23.69	11,442	$	20.16	59,022	$	18.12	11,995	$	26.21	8,949	$	23.59
San Francisco
275 Brannan	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Los Angeles
Pinnacle II	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
3401 Exposition	—	—			—	—		—	$	—		—	—		—	$	—	—	—		—	—		—	—
Subtotal	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
See footnotes on next page.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

QUARTERLY OFFICE LEASE EXPIRATIONS — NEXT EIGHT QUARTERS

	Q1 2015⁽¹⁾			Q2 2015			Q3 2015			Q4 2015			Q1 2016			Q2 2016			Q3 2016			Q4 2016
Location	Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾		Expiring SF	Rent/sf⁽²⁾
DEVELOPMENT
Hollywood
Icon	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
REDEVELOPMENT
Los Angeles
Element LA	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
1861 Bundy	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
3402 Pico	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
12655 Jefferson	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Subtotal	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
LEASE-UP
San Francisco
901 Market	349	$	15.47	3,010	$	27.11	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	349	$	15.47	3,010	$	27.11	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
HELD-FOR-SALE
Los Angeles
First Financial	—	$	—	7,079	$	31.78	772	$	32.52	—	—		—	$	—	15,838	$	31.20	1,302	$	33.00	15,611	$	35.31
Subtotal	—	$	—	7,079	$	31.78	772	$	32.52	—	$	—	—	$	—	15,838	$	31.20	1,302	$	33.00	15,611	$	35.31

TOTAL	98,874	$	35.14	34,492	$	31.31	36,191	$	40.82	151,953	$	13.85	31,958	$	32.48	155,508	$	26.23	148,281	$	39.64	39,933	$	34.89

______________________________


(1)	Q1 2015 expiring square footage does not include square feet that expired on December 31, 2014.

(2)

Rent data for our office properties is presented on an annualized basis without regard to cancellation options (with the exception of the Bank of America lease at our 1455 Market property, which is assumed to exercise all early termination options). Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) as of December 31, 2014, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.


(3)	Of the 8,382 square feet expiring in Q3 2015 at Rincon Center, 2,868 square feet has been backfilled.


(4)	Of the 21,717 square feet expiring in Q1 2015 at 1455 Market, 21,717 square feet has been backfilled.


(5)	Of the 28,770 square feet expiring in Q1 2015 at 6922 Hollywood, 15,171 square feet has been backfilled.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

OFFICE LEASE EXPIRATIONS — ANNUAL



Year of Lease Expiration	Square Footage of Expiring Leases	Percent of Office Portfolio Square Feet		Annualized Base Rent⁽¹⁾		Percentage of Office Portfolio Annualized Base Rent		Annualized Base Rent Per Square Foot⁽²⁾		Annualized Base Rent Per Square Foot at Expiration⁽³⁾
Vacant	806,559	13.6	%
2014	61,586	1.0		$	2,470,358	1.4	%	$	40.11	$	40.06
2015	321,510	5.4		8,136,184		4.6		25.31		25.59
2016	375,680	6.4		12,387,858		6.9		32.97		34.53
2017	567,454	9.6		18,467,065		10.4		32.54		31.66
2018	315,205	5.3		9,333,215		5.2		29.61		33.03
2019	741,200	12.5		26,370,326		14.8		35.58		40.08
2020	394,338	6.7		14,671,229		8.2		37.20		44.38
2021	708,102	12.0		21,933,729		12.3		30.98		36.60
2022	18,906	0.3		633,208		0.4		33.49		41.19
2023	634,297	10.7		19,729,036		11.1		31.10		38.99
Thereafter	535,260	9.0		23,153,522		13.0		43.26		56.11
Building management use	23,358	0.4		—		—		—		—
Signed leases not commenced⁽⁴⁾	420,372	7.1		20,891,485		11.7		49.70		76.04
Total/Weighted Average	5,923,827	100.0	%	$	178,177,215	100.0	%	$	34.82	$	41.56

______________________________

(1)


(2)	Annualized base rent per square foot for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases, divided by (ii) square footage under commenced leases as of December 31, 2014.


(3)	Annualized base rent per square foot at expiration for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases, divided by (ii) square footage under commenced lease as of December 31, 2014.

(4)

Annualized base rent per leased square foot and annualized best rent per square foot at expiration for signed leases not commenced, reflects uncommenced leases and is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under uncommenced leases for vacant space as of December 31, 2014, divided by (ii) square footage under uncommenced leases as of December 31, 2014.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

FIFTEEN LARGEST OFFICE TENANTS



Tenant	Number of Leases	Number of Properties	Lease Expiration	Total Leased Square Feet	Percent of Rentable Square Feet		Annualized Base Rent⁽¹⁾		Percent of Annualized Base Rent
Square	1	1	9/27/2023	333,216	6.0	%	$	10,571,764	6.7	%
Salesforce.com⁽²⁾	1	1	Various	234,699	4.3		10,488,009		6.7
Warner Bros. Entertainment	1	1	12/31/2021	230,000	4.2		8,789,091		5.6
Warner Music Group	1	1	12/31/2019	195,166	3.5		8,038,801		5.1
EMC Corporation⁽³⁾	2	2	Various	294,756	5.3		7,254,744		4.6
AIG	1	1	7/31/2017	132,600	2.4		5,967,000		3.8
Uber Technologies, Inc.⁽⁴⁾	1	1	Various	145,774	2.6		5,458,402		3.5
GSA⁽⁵⁾	4	3	Various	172,517	3.1		5,452,819		3.5
NFL Enterprises⁽⁶⁾	2	2	6/30/2019	137,305	2.5		4,983,416		3.2
Clear Channel	1	1	9/30/2016	109,323	2.0		4,569,640		2.9
Technicolor Creative Services USA, Inc.	1	1	5/31/2020	114,958	2.1		4,549,302		2.9
Amazon	1	1	11/30/2023	139,824	2.5		3,772,659		2.4
Capital One	1	1	2/28/2019	133,148	2.4		3,367,424		2.1
Fox Interactive Media, Inc.⁽⁷⁾	1	1	Various	69,746	1.3		3,205,814		2.0
Saatchi & Saatchi North America, Inc.	1	1	12/31/2019	113,000	2.1		3,069,070		2.0
TOTAL	20	19		2,556,032	46.3	%	$	89,537,955	57.0	%

______________________________


(1)	Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2014, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(2)

Salesforce.com is expected to take possession of an additional: (1) 2,868 square feet during the third quarter of 2015; and (2) 4,144 square feet during the second quarter of 2017. Expirations by square footage: (1) 83,016 square feet expiring on July 31, 2025; (2) 59,689 square feet expiring on April 30, 2027; (3) 93,028 square feet expiring on October, 31, 2028; and (4) 5,978 square feet of MTM storage space.


(3)	EMC expirations by property and square footage: (1) 66,510 square feet at 875 Howard Street expiring on June 30, 2019; (2) 185,292 square feet at First & King expiring on October 18, 2021; and (3) 42,954 square feet at First & King expiring on December 31, 2023.


(4)	Uber is expected to take possession of an additional 74,689 square feet during the first quarter of 2015.

(5)

GSA expirations by property and square footage: (1) 22,390 square feet at 1455 Market expiring on December 31, 2014; (2) 71,729 square feet at 1455 Market Street expiring on February 19, 2017; (3) 5,906 square feet at 901 Market Street expiring on April 30, 2017; (4) 28,993 square feet at Northview expiring on April 4, 2020; and (5) 43,499 square feet at 901 Market Street expiring on July 31, 2021.


(6)	NFL Enterprises expiration by property and square footage: (1) 127,386 square feet at 10950 Washington expiring on June 30, 2019 and (2) 9,919 square feet at 10900 Washington expiring on June 30, 2019.


(7)	Fox Interactive Media, Inc. expirations by square footage: (1) 35,151 square feet early terminating on March 31, 2015 and (2) 34,595 square feet expiring on March 31, 2017.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

OFFICE PORTFOLIO DIVERSIFICATION



	Total	Annualized Rent as
Industry	Square Feet⁽¹⁾	of Percent of Total
Business Services	87,617	1.4	%
Educational	178,926	3.9
Financial Services	524,216	6.3
Insurance	141,000	3.9
Legal	77,818	1.9
Media & Entertainment	1,088,513	27.1
Other	118,506	1.7
Real Estate	65,011	1.5
Retail	497,596	9.5
Technology	1,464,868	33.8
Advertising	113,000	2.0
Government	294,586	6.1
Healthcare	45,239	0.9
TOTAL	4,696,896	100.0	%

_____________________________


(1)	Does not include signed leases not commenced.

Hudson Pacific Properties, Inc.

Fourth Quarter 2014 Supplemental Operating and Financial Information

DEFINITIONS

Funds From Operations (FFO): We calculate funds from operations before non-controlling interest (FFO) in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO represents net income (loss), computed in accordance with accounting principles generally accepted in the United States of America (GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate depreciation and amortization (excluding amortization of above (below) market rents for acquisition properties and amortization of deferred financing costs and debt discounts) and after adjustments for unconsolidated partnerships and joint ventures. We use FFO as a supplemental performance measure because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.

We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that results from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs’ FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

Adjusted Funds From Operations (AFFO): Adjusted Funds From Operations (AFFO) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense and amortization of deferred financing costs, and subtracting recurring capital expenditures, tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of straight-line rents, amortization of lease buy-out costs, and amortization of above/below market lease intangible assets and liabilities and amortization of loan discounts/premium. We also add to FFO the difference between rental revenue recognize in accordance with accounting principles generally accepted in the United States (GAAP) based on the amortization of the prepaid rent liability relating to the KTLA lease at our Sunset Bronson property compared to scheduled cash rents received in connection with such prepayment. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

Net Operating Income (NOI): We evaluate performance based upon property net operating income (“NOI”) from continuing operations. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP and should not be considered an alternative to income from continuing operations, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management, because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating the Company’s properties and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective not immediately apparent from income from continuing operations. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI excludes corporate general and administrative expenses, depreciation and amortization, impairments, gain/loss on sale of real estate, interest expense, acquisition-related expenses and other non-operating items. NOI on a cash basis is NOI on a GAAP basis, adjusted to exclude the effect of straight-line rent and adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

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