Form 8-K Hudson Pacific Propertie For: Aug 06

August 6, 2015 4:08 PM

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): August 6, 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 August 6, 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 ended June 30, 2015. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on August 6, 2015, we made available on our Web site (www.hudsonpacificproperties.com) certain supplemental information concerning our financial results and operations for the second 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 ended June 30, 2015 and made available on our Web site certain supplemental information relating to our financial results for the quarter ended June 30, 2015.

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 August 6, 2015 regarding the Company’s financial results for the quarter ended June 30, 2015.
99.2**		Supplemental Operating and Financial Data for the quarter ended June 30, 2015.



**	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:	August 6, 2015	By:	/s/ Mark T. Lammas
			Mark T. Lammas
			Chief Financial Officer

EXHBIT INDEX



Exhibit No.		Description
99.1**		Press release dated August 6, 2015 regarding the Company’s financial results for the quarter ended June 30, 2015.
99.2**		Supplemental Operating and Financial Data for the quarter ended June 30, 2015.



**	Furnished herewith.

Hudson Pacific Properties Announces Second Quarter 2015 Financial Results

Los Angeles, CA, August 6, 2015—Hudson Pacific Properties, Inc. (the “Company,” or “Hudson”) (NYSE: HPP) today announced financial results for the second quarter ended June 30, 2015.

Financial Results

Funds From Operations (FFO) (excluding specified items) for the three months ended June 30, 2015 totaled $68.4 million or $0.47 per diluted share, compared to FFO (excluding specified items) of $19.8 million, or $0.28 per share, a year ago. The specified items for the second quarter of 2015 consisted of acquisition-related expenses of $37.5 million, or $0.26 per diluted share. Specified items for the second quarter of 2014 consisted of costs associated with a one-year consulting arrangement with a former executive of $1.1 million, or $0.02 per diluted share, and an early lease termination payment from Fox Interactive Media, Inc. relating to the Company’s 625 Second Street property of $1.6 million, or $0.02 per diluted share (after the write-off of non-cash items). FFO, including the specified items, totaled $30.9 million, or $0.21 per diluted share, for the three months ended June 30, 2015, compared to $20.2 million, or $0.29 per share, a year ago.

The Company reported net loss attributable to common stockholders of $25.2 million, or $(0.28) per diluted share, for the three months ended June 30, 2015, compared to net income attributable to common stockholders of $3.4 million or $0.05 per diluted share, for the three months ended June 30, 2014.

“We had a highly productive second quarter following closing of the EOP Northern California Portfolio acquisition, and continue to outperform our underwriting in terms of leasing activity, rental rates and concessions,” said Victor J. Coleman, Hudson’s Chairman and Chief Executive Officer. “During the quarter, we executed approximately 473,000 square feet of new and renewal leases, 365,000 of which were in the newly acquired San Francisco Peninsula and Silicon Valley portfolio, at cash rent spreads in excess of 35.0%.”

Coleman continued, “We remain focused on balance sheet flexibility and strategic growth in our core markets. We earned investment grade credit ratings from all three major U.S. credit rating agencies, improving our access to the unsecured debt markets going forward. We also purchased the former Coca-Cola bottling facility in Downtown Los Angeles’ Arts District for conversion to creative office. We view this micro-market as ideal for tech, media and entertainment companies looking to locate in dynamic, live-work-play environments.”

Second Quarter Highlights


•	FFO (excluding specified items) of $68.4 million, or $0.47 per diluted share, compared to $19.8 million, or $0.28 per share, a year ago;


•	Completed acquisition of the EOP Northern California Portfolio for approximately 63.5 million common shares and operating partnership units and $1.75 billion in cash (before certain credits, prorations and closing costs);


•	Completed new and renewal leases totaling 473,449 square feet resulting in a stabilized office portfolio leased rate of 94.7% and an in-service office portfolio leased rate of 88.8% as of June 30, 2015;


•	Completed a lease extension and expansion with NetSuite for an additional 49,266 square feet at the Company’s Peninsula Office Park property in San Mateo, California;


•	Completed acquisition of a 120,937-square-foot former Coca-Cola bottling facility for creative office conversion in Downtown Los Angeles’ Arts District for approximately $49.3 million (before closing costs and prorations);


•	Earned investment grade credit ratings from Moody's Investor Service, Standard & Poor's Ratings Services and Fitch Ratings;


•	Declared and paid quarterly dividend of $0.125 per share on common stock; 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 June 30, 2015

Total revenue from continuing operations during the second quarter increased 144.4% to $151.8 million from $62.1 million for the same quarter a year ago. Total operating expenses from continuing operations increased 177.4% to $135.7 million from $48.9 million for the same quarter a year ago. As a result, income from operations increased 22.0% to $16.1 million from $13.2 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 second quarter increased 119.0% to $14.1 million from $6.4 million for the same quarter a year ago. At June 30, 2015, the Company had $2.1 billion of notes payable, compared to $852.5 million at June 30, 2014.

Segment Operating Results For The Three Months Ended June 30, 2015

Office Properties

Total revenue from continuing operations at the Company’s office properties increased 171.3% to $143.6 million from $52.9 million for the same quarter a year ago. The increase was primarily the result of an $80.1 million increase in rental revenue to $120.1 million and an $11.8 million increase in tenant recoveries to $17.8 million, offset by a $1.3 million decrease in parking and other revenue to $5.7 million. The increase in rental revenue and tenant recoveries was largely the result of the acquisition of the EOP Northern California Portfolio on April 1, 2015, though higher occupancy and rents at the Company’s same-store office properties along with revenue associated with leases at its Element LA and 3401 Exposition Boulevard properties also contributed. Parking and other revenue for the second quarter of last year included an early lease termination payment from Fox Interactive Media, Inc. relating to the Company’s 625 Second Street property of $1.6 million, with no comparable activity in the second quarter of the current year.

Office property operating expenses from continuing operations increased 151.4% to $46.7 million from $18.6 million for the same quarter a year ago. The increase was primarily the result of operating expenses associated with the EOP Northern California Portfolio acquired on April 1, 2015.

Same-store office net operating income in the second quarter (excluding specified items) increased by 0.1% on a GAAP basis and 18.1% on a cash basis.

At June 30, 2015, the Company’s stabilized and in-service office portfolio was 94.7% and 88.8% leased, respectively. During the quarter, the Company executed 52 new and renewal leases totaling 473,449 square feet with 41 of these leases totaling 364,946 square feet executed at properties within the newly acquired EOP Northern California Portfolio.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties decreased 10.4% to $8.3 million from $9.2 million for the same quarter a year ago due to a $0.6 million decrease in rental revenue to $5.4 million and a $0.3 million decrease in other property-related revenue to $2.6 million resulting from the Company’s decision to take certain buildings and stages off-line to facilitate its ICON development and extension of its lease with KTLA at its Sunset Bronson property. Total media and entertainment operating expenses decreased 13.2% to $5.1 million from $5.8 million for the same quarter a year ago due to slower production activity stemming from a combination of the Company’s decision to take stages off-line at its Sunset Bronson property and seasonal production hiatus at its Sunset Gower property.

Same-store media and entertainment net operating income in the second quarter (excluding specified items) decreased by 5.7% on a GAAP basis and by 18.0% on a cash basis.

As of June 30, 2015, the trailing 12-month occupancy for the Company’s media and entertainment portfolio increased to 71.6% from 69.9% for the trailing 12-month period ended June 30, 2014.

Combined Operating Results For The Six Months Ended June 30, 2015

For the first six months of 2015, total revenue from continuing operations was $214.6 million, an increase of 82.3% from $117.7 million in the same period the prior year. Total operating expenses from continuing operations were $185.2 million, an increase of 98.5% from $93.3 million in the same period a year ago. As a result, income from operations increased 20.5% to $29.4 million for the first six months of 2015, compared to income from operations of $24.4 million for the same period a year ago. Revenues for the first six months of 2014 include an early lease termination from Fox Interactive Media, Inc. relating to the Company’s 625 Second Street property of $1.6 million (after the write-off of non-cash items), with no comparable activity in the first six months of 2015. The Company had $43.5 million of acquisition-related expense during the first six months of 2015, compared to $0.1 million of acquisition-related expense during the first six months of 2014. Interest expense during the first six months of 2015 increased 51.2% to $19.6 million from $13.0 million in the same period of 2014. At June 30, 2014, the Company had $2.1 billion of notes payable, compared to $852.5 million at June 30, 2014.

Balance Sheet

At June 30, 2015, the Company had total assets of $6.3 billion, including unrestricted cash and cash equivalents of $40.3 million. At June 30, 2015, the Company had $400.0 million of total capacity under its unsecured revolving credit facility, of which $45.0 million had been drawn, and the Company’s $550.0 million two-year term loan, $550.0 million five-year term loan and $350.0 million seven-year term loan were each fully drawn.

Acquisitions

EOP Northern California Portfolio Acquisition

On April 1, 2015, the Company acquired the EOP Northern California Portfolio for approximately 63.5 million common shares and operating partnership units and $1.75 billion in cash (before certain credits, prorations and closing costs). The portfolio consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels in prime Bay Area submarkets. The Company funded the acquisition’s $1.75 billion cash consideration and approximately $54.3 million of closing costs from a combination of sources, including $1.3 billion of unsecured term loan indebtedness and approximately $261.7 million of net proceeds from the Company’s joint venture with CPPIB with respect to its 1455 Market Street property and the sale of its First Financial property, both of which funded the transaction pursuant to a 1031 exchange. After accounting for various credits, proration adjustments and closing costs, the remaining approximately $189.7 million required to close the acquisition was funded from cash on hand from the Company’s January 2015 common stock offering.

4th & Traction Property Acquisition

On May 22, 2015, the Company acquired the brick-clad three-story, 120,937-square-foot former Coca-Cola bottling facility now known as “4th & Traction” in Los Angeles, California for $49.3 million (before certain credits, prorations and closing costs). The Company funded this off-market transaction with borrowings under its unsecured revolving credit facility. Built in 1915, the building is currently vacant, and the Company is preparing to break ground on a creative office conversion to include ground-floor retail, a rooftop deck and a new parking structure with over 300 spaces with completion expected by early 2017. Located in Downtown Los Angeles’ Arts District, the property will benefit from the neighborhood’s expanding residential, retail and amenity base, as well as tightening office market conditions in other submarkets favored by creative office users, such as Hollywood and West Los Angeles.

Major Leasing

NetSuite Renewal & Expansion at Peninsula Office Park

On May 8, 2015, the Company renewed and expanded its lease with NetSuite by 49,266 square feet at 2955 Campus Drive and 2929 Campus Drive at its Peninsula Office Park property in San Mateo, California. Upon commencement of this expansion in the third quarter of this year, NetSuite will occupy a total of 166,070 square feet at the 510,456-square-foot office campus, including the entire 2955 Campus Drive building. NetSuite is a leading provider of business software services, and has maintained its global headquarters at the Peninsula Office Park property since its founding in 1998, growing its footprint nearly tenfold during that time.

Capital Markets

On May 11, 2015, the Company announced it received investment grade credit ratings from all three major U.S. credit rating agencies. The Company was assigned a Baa3 rating from Moody’s Investor Service and a BBB- rating from Standard and Poor’s Ratings Services and Fitch Ratings. All three credit ratings have a stable outlook, which is expected to further improve the Company’s access to the capital markets and enhance its competitive position and financial flexibility.

Offerings

On April 10, 2015, certain funds affiliated with Farallon Capital Management completed a public offering of 6,037,500 shares of Hudson's common stock. The Company did not receive any proceeds from the offering.

Activities Subsequent to June 30, 2015

275 Brannan Mortgage Loan Payoff

On April 10, 2015, the Company fully repaid the $15.0 million loan secured by its 275 Brannan Street property in San Francisco, California. The loan was scheduled to mature on October 5, 2015.

901 Market Mortgage Loan Paydown

On April 10, 2015, the Company paid down $19.6 million of the mortgage loan secured by its 901 Market Street property, reducing the $49.6 million balance as of March 31, 2015 to $30.0 million.

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 second quarter of 2015. Both dividends were paid on June 30, 2015 to stockholders of record on June 20, 2015.

2015 Outlook

The Company is increasing its full-year 2015 FFO guidance from its previously announced range of $1.50 to $1.56 per diluted share (excluding specified items) to a revised range of $1.56 to $1.62 per diluted share (excluding specified items). The guidance reflects the Company’s FFO for the second quarter ended June 30, 2015 of $0.47 per diluted share (excluding specified items). This guidance also reflects all acquisitions, dispositions, offerings, financings and leasing activity referenced in this press release. As is always the case, 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 earnings from 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. This guidance assumes full-year 2015 weighted average fully diluted common stock\units of 129,575,000. For purposes of this estimate, the Company has updated its assumptions with respect to the $250.0 million of its five-year term facility and its $550.0 million two-year term facility, the interest rates under which were floating as of its last guidance estimate and currently remain floating. Over the course of evaluating its near-term

financing strategy, the Company has identified the opportunity to sell an asset expected to generate approximately $90.0 million in proceeds (before certain credits, prorations and closing costs) to be applied toward a partial repayment of its $550.0 million two-year term facility. The Company’s updated guidance assumes this will occur prior to the end of the third quarter. The Company is also pursuing the refinancing of the construction loan secured by its Element LA property with long-term financing. The Company’s updated guidance assumes that prior to the end of the third quarter, the existing approximately $83.0 million Element LA loan balance will repaid with a $168.0 million, 10-year fixed rate loan bearing 4.50% per annum. The remaining approximately $85.0 million in net proceeds from this refinancing are assumed to be applied toward a partial repayment of its $550.0 million two-year term facility. With respect to the remaining approximately $375.0 million of two-year term facility and the $250.0 million of five-year term financing which remains floating, the Company continues to explore various alternatives to refinance some or all of these facilities, but this guidance assumes that those amounts remain outstanding at their current floating rates of interest through the remainder of this calendar year.

Supplemental Information

Supplemental financial information regarding Hudson's second quarter 2015 results may be found in the Investor Relations section of Hudson’s Website at investors.hudsonpacificproperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

Hudson will hold a conference call to discuss second quarter 2015 financial results at 1:30 p.m. PT / 4:30 p.m. ET on August 6, 2015. To participate in the call by telephone, please dial (877) 407-0784 five to 10 minutes prior to the start time to allow time for registration. International callers should dial (201) 689-8560. The call will also be broadcast live over the Internet and can be accessed via the Investor Relations section of Hudson’s Website at investors.hudsonpacificproperties.com, where a replay of the call will be available for 90 days. A replay will also be available beginning August 6, at 4:30 p.m. PT / 7:30 p.m. ET, through August 13, at 8:59 p.m. PT / 11:59 p.m. ET, by dialing (877) 870-5176 and entering the passcode 13613757. International callers should dial (858) 384-5517 and enter the same passcode.

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 the Company’s 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 the Company’s 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 is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in select West Coast markets. Hudson invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. Founded in 2006 as Hudson Capital, the Company went public in 2010, electing to be taxed as a real estate investment trust. Through the years, Hudson has strategically assembled a portfolio totaling approximately 17.5 million square feet, including land for development, in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, many in the technology, media and entertainment sectors. As a long-term owner, Hudson prioritizes tenant satisfaction and retention, providing highly-customized build-outs and working proactively to accommodate tenants’ growth. Hudson trades as a component of the Russell 2000® and the Russell 3000® indices. For more information visit hudsonpacificproperties.com.

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, 2014 filed with the Securities and Exchange Commission, or SEC, on March 2, 2015, as amended, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

Investor/Media Contacts:

Hudson Pacific Properties, Inc.

Laura Campbell

Director, Investor Relations

(310) 445-5700

[email protected]

Greg Berardi

Blue Marlin Partners

(415) 239-7826

[email protected]

(FINANCIAL TABLES FOLLOW)

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

	June 30, 2015			December 31, 2014
ASSETS	(Unaudited)			(Audited)
REAL ESTATE ASSETS
Land	$	1,399,207		$	620,805
Building and improvements	4,103,152			1,284,602
Tenant improvements	272,779			116,317
Furniture and fixtures	9,952			13,721
Property under development	124,582			135,850
Total real estate held for investment	5,909,672			2,171,295
Accumulated depreciation and amortization	(181,163		)	(134,657		)
Investment in real estate, net	5,728,509			2,036,638
Cash and cash equivalents	40,327			17,753
Restricted cash	17,319			14,244
Accounts receivable, net	12,312			16,247
Notes receivable	28,476			28,268
Straight-line rent receivables	47,137			33,006
Deferred leasing costs and lease intangibles, net	381,370			102,023
Deferred finance costs, net	18,384			8,723
Interest rate contracts	8,689			3
Goodwill	8,754			8,754
Prepaid expenses and other assets	21,853			6,692
Assets associated with real estate held for sale	—			68,534
TOTAL ASSETS	$	6,313,130		$	2,340,885
LIABILITIES AND EQUITY
Notes payable	$	2,119,157		$	918,059
Accounts payable and accrued liabilities	75,205			36,844
Lease intangible liabilities, net	125,795			40,969
Security deposits	21,100			6,257
Prepaid rent	21,909			8,600
Interest rate contracts	1,766			1,750
Liabilities associated with real estate held for sale	275			43,214
TOTAL LIABILITIES	2,365,207			1,055,693
6.25% series A cumulative redeemable preferred units of the Operating Partnership	10,177			10,177
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 June 30, 2015 and December 31, 2014, respectively	145,000			145,000
Common stock, $0.01 par value, 490,000,000 authorized, 89,078,401 shares and 66,797,816 shares outstanding at June 30, 2015 and December 31, 2014, respectively	890			668
Additional paid-in capital	1,739,088			1,070,833
Accumulated other comprehensive income (loss)	2,856			(2,443		)
Accumulated deficit	(40,766		)	(34,884		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	1,847,068			1,179,174
Non-controlling interest—members in Consolidated Entities	262,756			42,990
Non-controlling common units in the Operating Partnership	1,827,922			52,851
TOTAL EQUITY	3,937,746			1,275,015
TOTAL LIABILITIES AND EQUITY	$	6,313,130		$	2,340,885

Hudson Pacific Properties, Inc.

Combined Statements of Operations

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues
Office
Rental	$	120,052		$	39,905		$	161,628		$	75,915
Tenant recoveries	17,790			5,988			23,854			11,559
Parking and other	5,716			7,013			11,011			11,492
Total office revenues	143,558			52,906			196,493			98,966

Media & entertainment
Rental	5,394			5,958			10,861			11,407
Tenant recoveries	253			384			493			704
Other property-related revenue	2,556			2,811			6,665			6,445
Other	58			70			131			203
Total media & entertainment revenues	8,261			9,223			18,150			18,759

Total revenues	151,819			62,129			214,643			117,725

Operating expenses
Office operating expenses	46,691			18,573			63,826			34,500
Media & entertainment operating expenses	5,069			5,838			11,074			11,843
General and administrative	10,373			6,579			19,573			12,355
Depreciation and amortization	73,592			17,944			90,750			34,612
Total operating expenses	135,725			48,934			185,223			93,310

Income from operations	16,094			13,195			29,420			24,415

Other expense
Interest expense	14,113			6,445			19,606			12,969
Interest income	(48		)	(11		)	(101		)	(20		)
Acquisition-related expenses	37,481			—			43,525			105
Other expenses	40			12			(1		)	13
	51,586			6,446			63,029			13,067
(Loss) income from continuing operations before (loss) gain on sale of real estate	(35,492		)	6,749			(33,609		)	11,348
(Loss) gain on sale of real estate	(591		)	—			22,100			—
(Loss) income from continuing operations	(36,083		)	6,749			(11,509		)	11,348

Loss from discontinued operations	—			(60		)	—			(126		)
Net loss from discontinued operations	—			(60		)	—			(126		)
Net (loss) income	$	(36,083	)	$	6,689		$	(11,509	)	$	11,222

Net income attributable to preferred stock and units	(3,195		)	(3,195		)	(6,390		)	(6,395		)
Net income attributable to restricted shares	(80		)	(69		)	(150		)	(138		)
Net (income) loss attributable to non-controlling interest in consolidated entities	(1,893		)	61			(3,395		)	104
Net loss (income) attributable to common units in the Operating Partnership	16,008			(121		)	15,412			(168		)
Net (loss) income attributable to Hudson Pacific Properties, Inc. common stockholders	$	(25,243	)	$	3,365		$	(6,032	)	$	4,625
Basic and diluted per share amounts:
Net (loss) income from continuing operations attributable to common stockholders	$	(0.28	)	$	0.05		$	(0.07	)	$	0.07
Net (loss) income attributable to common stockholders’ per share—basic and diluted	$	(0.28	)	$	0.05		$	(0.07	)	$	0.07
Weighted average shares of common stock outstanding—basic	88,894,258			66,485,639			82,906,087			65,063,596
Weighted average shares of common stock outstanding—diluted	88,894,258			69,421,621			82,906,087			67,997,167
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.250		$	0.250

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Reconciliation of net loss to Funds From Operations (FFO):
Net (loss) income	$	(36,083	)	$	6,689		$	(11,509	)	$	11,222
Adjustments:
Depreciation and amortization of real estate assets	73,293			17,835			90,366			34,503
Loss (gain) from sale of real estate	591			—			(22,100		)	—
FFO attributable to non-controlling interests	(3,696		)	(1,080		)	(7,008		)	(2,171		)
Net income attributable to preferred stock and units	(3,195		)	(3,195		)	(6,390		)	(6,395		)
FFO to common stockholders and unit holders	$	30,910		$	20,249		$	43,359		$	37,159
Specified items impacting FFO:
Acquisition-related expenses	$	37,481		$	—		$	43,525		$	105
Consulting fee to former executive	—			1,111			—			1,946
Lease termination revenue	—			(1,687		)	—			(1,687		)
Lease termination non-cash write-off	—			77			—			77
FFO (excluding specified items) to common stockholders and unit holders	$	68,391		$	19,750		$	86,884		$	37,600

Weighted average common stock/units outstanding— diluted	145,849			69,422			113,162			67,998
FFO per common stock/unit—diluted	$	0.21		$	0.29		$	0.38		$	0.55
FFO (excluding specified items) per common stock/unit—diluted	$	0.47		$	0.28		$	0.77		$	0.55

HUDSON PACIFIC PROPERTIES, INC.

SECOND QUARTER 2015

Supplemental Operating and Financial Data

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 Southern and Northern 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, 2014 filed with the Securities and Exchange Commission on March 2, 2015, as amended, and our Form 8-K filed on January 12, 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, 2014 filed with the Securities and Exchange Commission on March 2, 2015, as amended.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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	11

In-Service Office Portfolio by Property	12
In-Service Office Portfolio Summary	14
Redevelopment, Development and Held-For-Sale Office Summary	15
Land Properties Summary	16
Media & Entertainment Portfolio Summary	17
Current Value Creation Development Projects	18
Same-Store Analysis	19
Reconciliation of Same-Store Property Net Operating Income to GAAP Net Income (Loss)	21
Net Operating Income Detail	22
Office Portfolio Leasing Activity	23
Office Portfolio Commenced Leases with Non-Recurring, Up-Front Abatements	24
Quarterly Uncommenced / Backfill — Next Eight Quarters	25
Quarterly Office Lease Expirations — Next Eight Quarters	26
Office Lease Expirations — Annual	27
Fifteen Largest Office Tenants	28
Office Portfolio Diversification	29

DEFINITIONS	30

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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	Frank Cohen
Chairman of the Board, Chief Executive Officer and President, Hudson Pacific Properties, Inc.		President and Chief Executive Officer, Catellus Development Corporation	Senior Managing Director, Blackstone Group, L.P.

Richard B. Fried		Jonathan M. Glaser	Robert L. Harris II
Managing Member, Farallon Capital Management, L.L.C.		Managing Member, JMG Capital Management LLC	Executive Chairman of the Board, Acacia Research Corporation

Mark D. Linehan		Robert M. Moran, Jr.	Michael Nash
President and Chief Executive Officer, Wynmark Company		Co-founder and Co-owner, FJM Investments LLC	Senior Managing Director, Blackstone Group, L.P., Chief Investment Officer, Blackstone Real Estate Debt Strategies

Barry A. Porter			John Schreiber
Managing General Partner, Clarity Partners L.P.			President, Centaur Capital Partners, Inc., Partner and Co-Founder, Blackstone Real Estate Advisors

EXECUTIVE AND SENIOR MANAGEMENT

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

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

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

Second Quarter 2015 Supplemental Operating and Financial Data

CORPORATE DATA

(unaudited, $ in thousands, except number of properties, square feet and per share data)

Hudson Pacific Properties, Inc. (NYSE: HPP) (also referred to herein as the “Company,” “we,” “us,” or “our”) is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. 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.



	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014
Number of office properties owned	53			25			26			25			26
Office properties square feet⁽¹⁾	14,042,298			5,700,148			5,923,827			5,422,612			5,533,656
Stabilized office properties leased rate as of end of period⁽²⁾	94.7		%	93.7		%	94.6		%	94.1		%	94.6		%
In-Service office properties leased rate as of end of period⁽³⁾	88.8		%	N/A			N/A			N/A			N/A
Number of media & entertainment properties owned	2			2			2			2			2
Media & entertainment square feet⁽¹⁾	869,568			869,568			869,568			884,193			884,193
Media & entertainment leased rate as of end of period⁽⁴⁾	71.6		%	71.6		%	71.6		%	71.6		%	69.9		%
Number of land assets owned	7			5			5			6			6
Land assets estimated square feet⁽⁵⁾	2,590,099			1,448,173			1,448,173			1,861,173			1,861,173
Market capitalization (in thousands):
Total debt⁽⁶⁾	$	2,116,974		$	784,571		$	957,452		$	917,238		$	848,338
Series A Preferred Units	10,177			10,177			10,177			10,177			10,177
Series B Preferred Stock	145,000			145,000			145,000			145,000			145,000
Common equity capitalization⁽⁷⁾	4,135,927			2,731,256			2,091,479			1,712,132			1,759,364
Total market capitalization	$	6,408,078		$	3,671,004		$	3,204,108		$	2,784,547		$	2,762,879
Debt/total market capitalization	33.0		%	21.4		%	29.9		%	32.9		%	30.7		%
Series A preferred units & debt/total market capitalization	33.2		%	21.6		%	30.2		%	33.3		%	31.1		%
Common stock data (NYSE: HPP)
Range of closing prices⁽⁸⁾	$ 28.22 - 33.95			$ 30.25 - 33.65			$ 24.64 - 30.34			$ 24.45 - 27.01			$ 22.32 - 25.91
Closing price at quarter end	$	28.37		$	33.19		$	30.06		$	24.66		$	25.34
Weighted average fully diluted common stock\units outstanding (in thousands)⁽⁹⁾	145,849			79,713			69,685			69,126			69,422
Shares of common stock\units outstanding at end of period (in thousands)⁽¹⁰⁾	145,785			82,292			69,577			69,430			69,430

__________________________


(1)	Square footage for 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.


(2)	Stabilized office properties leased rate excludes the development, redevelopment, lease-up properties, properties held-for-sale, and land properties described on pages 13, 15, and 16.


(3)	In-service office properties leased rate includes the stabilized office properties and lease-up properties described on pages 12 and 13. The Company has adopted an "in-service" office properties classification as of the three-month period ending June 30, 2015 in light of the April 1, 2015 acquisition of a significant number of lease-up properties.


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


(5)	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.


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


(7)	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.


(8)	For the quarter indicated.

(9)

For the quarter indicated, diluted shares represent ownership in our Company through shares of common stock, OP Units and other convertible or exchangeable instruments. The weighted average fully diluted common stock\units outstanding for the three month period ending June 30, 2015, March 31, 2015 and December 31, 2014 includes an estimate for projected executive stock grants under our 2013 and 2014 outperformance programs based on the projected award potential of such programs as of end of such periods, as calculated in accordance with the Accounting Standards Codification 260 Earnings Per Share (the "Projected 2013/2014 OPP stock grants").


(10)	This amount represents fully diluted common stock and OP units (including unvested restricted stocks) as of the end of the quarter indicated. The shares of common stock\units outstanding does not include any Projected 2013/2014 OPP stock grants.

CONSOLIDATED FINANCIAL RESULTS

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

Consolidated Balance Sheets (Unaudited, $ in thousands, except share data)

	June 30, 2015			December 31, 2014
ASSETS
Total investment in real estate, net	$	5,728,509		$	2,036,638
Cash and cash equivalents	40,327			17,753
Restricted cash	17,319			14,244
Accounts receivable, net	12,312			16,247
Notes receivable	28,476			28,268
Straight-line rent receivables	47,137			33,006
Deferred leasing costs and lease intangibles, net	381,370			102,023
Deferred finance costs, net	18,384			8,723
Interest rate contracts	8,689			3
Goodwill	8,754			8,754
Prepaid expenses and other assets	21,853			6,692
Assets associated with real estate held for sale	—			68,534
TOTAL ASSETS	$	6,313,130		$	2,340,885

LIABILITIES AND EQUITY
Notes payable	$	2,119,157		$	918,059
Accounts payable and accrued liabilities	75,205			36,844
Lease intangible liabilities, net	125,795			40,969
Security deposits	21,100			6,257
Prepaid rent	21,909			8,600
Interest rate contracts	1,766			1,750
Liabilities associated with real estate held for sale	275			43,214
TOTAL LIABILITIES	$	2,365,207		$	1,055,693

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

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 June 30, 2015 and December 31, 2014, respectively	$	145,000		$	145,000
Common stock, $0.01 par value, 490,000,000 authorized, 89,078,401 shares and 66,797,816 shares outstanding at June 30, 2015 and December 31, 2014, respectively	890			668
Additional paid-in capital	1,739,088			1,070,833
Accumulated other comprehensive income (loss)	2,856			(2,443		)
Accumulated deficit	(40,766		)	(34,884		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	$	1,847,068		$	1,179,174
Non-controlling interest—members in Consolidated Entities	262,756			42,990
Non-controlling common units in the Operating Partnership	1,827,922			52,851
TOTAL EQUITY	$	3,937,746		$	1,275,015
TOTAL LIABILITIES AND EQUITY	$	6,313,130		$	2,340,885

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Revenues
Office
Rental	$	120,052		$	39,905		$	161,628		$	75,915
Tenant recoveries	17,790			5,988			23,854			11,559
Parking and other	5,716			7,013			11,011			11,492
Total office revenues	$	143,558		$	52,906		$	196,493		$	98,966
Media & entertainment
Rental	$	5,394		$	5,958		$	10,861		$	11,407
Tenant recoveries	253			384			493			704
Other property-related revenue	2,556			2,811			6,665			6,445
Other	58			70			131			203
Total media & entertainment revenues	$	8,261		$	9,223		$	18,150		$	18,759
Total revenues	$	151,819		$	62,129		$	214,643		$	117,725
Operating expenses
Office operating expenses	$	46,691		$	18,573		$	63,826		$	34,500
Media & entertainment operating expenses	5,069			5,838			11,074			11,843
General and administrative	10,373			6,579			19,573			12,355
Depreciation and amortization	73,592			17,944			90,750			34,612
Total operating expenses	$	135,725		$	48,934		$	185,223		$	93,310
Income from operations	$	16,094		$	13,195		$	29,420		$	24,415
Other expense
Interest expense	$	14,113		$	6,445		$	19,606		$	12,969
Interest income	(48		)	(11		)	(101		)	(20		)
Acquisition-related expenses	37,481			—			43,525			105
Other expenses	40			12			(1		)	13
	$	51,586		$	6,446		$	63,029		$	13,067
(Loss) income from continuing operations before (loss) gain on sale of real estate	(35,492		)	6,749			(33,609		)	11,348
(Loss) gain on sale of real estate	(591		)	—			22,100			—
(Loss) income from continuing operations	(36,083		)	6,749			(11,509		)	11,348
Loss from discontinued operations	—			(60		)	—			(126		)
Net loss from discontinued operations	—			(60		)	—			(126		)
Net (loss) income	$	(36,083	)	$	6,689		$	(11,509	)	$	11,222
Net income attributable to preferred stock and units	(3,195		)	(3,195		)	(6,390		)	(6,395		)
Net income attributable to restricted shares	(80		)	(69		)	(150		)	(138		)
Net (income) loss attributable to non-controlling interest in consolidated entities	(1,893		)	61			(3,395		)	104
Net loss (income) attributable to common units in the Operating Partnership	16,008			(121		)	15,412			(168		)
Net (loss) income attributable to Hudson Pacific Properties, Inc. common stockholders	$	(25,243	)	$	3,365		$	(6,032	)	$	4,625
Basic and diluted per share amounts:
Net (loss) income from continuing operations attributable to common stockholders	$	(0.28	)	$	0.05		$	(0.07	)	$	0.07
Net (loss) income attributable to common stockholders’ per share—basic and diluted	$	(0.28	)	$	0.05		$	(0.07	)	$	0.07
Weighted average shares of common stock outstanding—basic	88,894,258			66,485,639			82,906,087			65,063,596
Weighted average shares of common stock outstanding—diluted	88,894,258			69,421,621			82,906,087			67,997,167
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.250		$	0.250

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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

Quarter To Date	Three Months Ended
Funds From Operations (FFO)⁽¹⁾	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014

Net (loss) income	$	(36,083	)	$	24,574		$	885		$	11,415		$	6,689
Adjustments:
Depreciation and amortization of real estate assets	73,293			17,073			20,158			17,342			17,835
Loss / (gain) from sale of real estate	591			(22,691		)	—			(5,538		)	—
FFO attributable to non-controlling interests	(3,696		)	(3,312		)	(1,254		)	(1,396		)	(1,080		)
Net income attributable to preferred stock and units	(3,195		)	(3,195		)	(3,195		)	(3,195		)	(3,195		)
FFO to common stockholders and unit holders	$	30,910		$	12,449		$	16,594		$	18,628		$	20,249
Specified items impacting FFO:
Acquisition-related expenses	$	37,481		$	6,044		$	4,322		$	214		$	—
Consulting fee to former executive	—			—			1,273			890			1,111
Supplemental net property tax expense	—			—			—			1,072			—
Lease termination revenue	—			—			—			—			(1,687		)
Lease termination non-cash write-off	—			—			—			—			77
FFO (excluding specified items) to common stockholders and unit holders	$	68,391		$	18,493		$	22,189		$	20,804		$	19,750

Weighted average common stock/units outstanding—diluted	145,849			79,713			69,685			69,126			69,422
FFO per common stock/unit—diluted	$	0.21		$	0.16		$	0.24		$	0.27		$	0.29
FFO (excluding specified items) per common stock/unit—diluted	$	0.47		$	0.23		$	0.32		$	0.30		$	0.28

Year To Date	Six Months Ended			Three Months Ended			Twelve Months Ended			Nine Months Ended			Six Months Ended
Funds From Operations (FFO)⁽¹⁾	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014

Net (loss) income	$	(11,509	)	$	24,574		$	23,522		$	22,637		$	11,222
Adjustments:
Depreciation and amortization of real estate assets	90,366			17,073			72,003			51,845			34,503
Gain from sale of real estate	(22,100		)	(22,691		)	(5,538		)	(5,538		)	—
FFO attributable to non-controlling interest	(7,008		)	(3,312		)	(5,260		)	(4,009		)	(2,171		)
Net income attributable to preferred stock and units	(6,390		)	(3,195		)	(12,785		)	(9,590		)	(6,395		)
FFO to common stockholders and unit holders	$	43,359		$	12,449		$	71,942		$	55,345		$	37,159
Specified items impacting FFO:
Acquisition-related expenses	$	43,525		$	6,044		$	4,641		$	319		$	105
Consulting fee to former executive	—			—			4,109			2,836			1,946
Supplemental net property tax expense	—			—			809			809			—
Lease termination revenue	—			—			(1,687		)	(1,687		)	(1,687		)
Lease termination non-cash write-off	—			—			77			77			77
FFO (excluding specified items) to common stockholders and unit holders	$	86,884		$	18,493		$	79,891		$	57,699		$	37,600

Weighted average common stock/units outstanding—diluted	113,162			79,713			68,892			67,933			67,998
FFO per common stock/unit—diluted	$	0.38		$	0.16		$	1.04		$	0.81		$	0.55
FFO (excluding specified items) per common stock/unit—diluted	$	0.77		$	0.23		$	1.16		$	0.85		$	0.55

______________________________


(1)	See page 30 for Management’s Statements on Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO).

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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

Quarter To Date	Three Months Ended
Adjusted Funds From Operations (AFFO)⁽¹⁾	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014

FFO	$	30,910		$	12,449		$	16,594		$	18,628		$	20,249
Adjustments:
Straight-line rent	(10,931		)	(3,038		)	(3,105		)	(2,737		)	(4,279		)
Amortization of above-market and below-market leases, net	(10,258		)	(1,291		)	(1,215		)	(1,291		)	(1,456		)
Amortization of above-market and below-market ground leases, net	515			62			62			62			62
Amortization of lease incentive costs	89			86			144			102			80
Amortization of deferred financing costs and loan premium/discount, net	1,551			652			460			598			243
Recurring capital expenditures, tenant improvements and lease commissions	(13,301		)	(6,191		)	(11,702		)	(8,378		)	(13,729		)
Non-cash compensation expense	2,003			2,149			2,512			1,792			1,978
AFFO	$	578		$	4,878		$	3,750		$	8,776		$	3,148

Weighted average common stock/units outstanding—diluted	145,849			79,713			69,685			69,126			69,422
AFFO per common stock/unit—diluted	$	—		$	0.06		$	0.05		$	0.13		$	0.05
Dividends paid to common stock and unit holders	$	18,224		$	10,287		$	8,932		$	8,679		$	8,679
AFFO payout ratio	3,152.9		%	210.9		%	238.2		%	98.9		%	275.7		%

Year To Date	Six Months Ended			Three Months Ended			Twelve Months Ended			Nine Months Ended			Six Months Ended
Adjusted Funds From Operations (AFFO)⁽¹⁾	June 30, 2015			March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014

FFO	$	43,359		$	12,449		$	71,942		$	55,345		$	37,159
Adjustments:
Straight-line rent	(13,969		)	(3,038		)	(12,753		)	(9,435		)	(6,869		)
Amortization of above-market and below-market leases, net	(11,549		)	(1,291		)	(5,081		)	(3,830		)	(2,566		)
Amortization of above-market and below-market ground leases, net	577			62			248			186			124
Amortization of lease incentive costs	175			86			379			235			133
Amortization of deferred financing costs and loan premium/discount, net	2,203			652			1,525			1,065			466
Recurring capital expenditures, tenant improvements and lease commissions	(19,492		)	(6,191		)	(40,984		)	(29,282		)	(20,893		)
Non-cash compensation expense	4,152			2,149			7,559			5,047			3,255
AFFO	$	5,456		$	4,878		$	22,835		$	19,331		$	10,809

Weighted average common stock/units outstanding—diluted	113,162			79,713			68,892			67,933			67,998
AFFO per common stock/unit—diluted	$	0.05		$	0.06		$	0.33		$	0.28		$	0.16
Dividends paid to common stock and unit holders	$	28,511		$	10,287		$	34,966		$	26,034		$	17,355
AFFO payout ratio	522.6		%	210.9		%	153.1		%	134.7		%	160.6		%

______________________________

(1)

See page 30 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 period ending 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.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

DEBT SUMMARY

(Tabular amounts in thousands)

The following table sets forth information with respect to our outstanding indebtedness as of June 30, 2015.



				Annual			Balance at
Debt	Outstanding		Interest Rate⁽¹⁾	Debt Service⁽¹⁾		Maturity Date	Maturity
Unsecured loans
Unsecured revolving credit facility	$	45,000	LIBOR+ 1.15% to 1.85%	$	—	4/1/2019	$	45,000
Unsecured term loan—2-year term	550,000		LIBOR+ 1.30% to 2.20%	—		4/1/2017	550,000
Unsecured term loan—5-year term⁽²⁾	550,000		LIBOR+ 1.30% to 2.20%	—		4/1/2020	550,000
Unsecured term loan—7-year term⁽³⁾	350,000		LIBOR+ 1.60% to 2.55%	—		4/1/2022	350,000
Total unsecured loans	$	1,495,000

Mortgage Loans
Mortgage loan secured by Pinnacle II⁽⁴⁾	$	86,826	6.31%	6,754		9/6/2016	85,301
Mortgage loan secured by 901 Market⁽⁵⁾	30,000		LIBOR+2.25%	—		10/31/2016	30,000
Mortgage loan secured by Element LA⁽⁶⁾	82,646		LIBOR+1.95%	—		11/1/2017	82,646
Mortgage loan secured by Rincon Center⁽⁷⁾	103,365		5.13%	7,195		5/1/2018	97,673
Mortgage loan secured by Sunset Gower/Sunset Bronson⁽⁸⁾	97,000		LIBOR+2.25%	—		2/11/2018	97,000
Mortgage loan secured by Met Park North⁽⁹⁾	64,500		LIBOR+1.55%	—		8/1/2020	64,500
Mortgage loan secured by 10950 Washington⁽¹⁰⁾	28,637		5.32%	2,003		3/11/2022	24,632
Mortgage loan secured by Pinnacle I⁽¹¹⁾	129,000		3.95%	5,172		11/7/2022	117,190
Subtotal mortgage loans	$	621,974
Unamortized loan premium, net⁽¹²⁾	2,183
Total mortgage loans	$	624,157
Total	$	2,119,157

______________________________


(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)

Effective as of May 1, 2015, the Company entered into an interest rate contract with respect to $300.0 million of the $550.0 million five-year term loan facility that swapped one-month LIBOR to a fixed rate of 1.36% through the loan’s maturity on April 1, 2020. As a result, $300.0 million of this facility currently bears interest at a rate equal to 2.66% to 3.56% per annum depending on our leverage ratio.


(3)	Effective as of May 1, 2015, the Company entered into an interest rate contract with respect to the entire $350.0 million seven-year term loan facility that swapped one-month LIBOR to a fixed rate of 1.61% through the loan’s maturity on April 1, 2022. As a result, this facility currently bears interest at a rate equal to 3.21% to 4.16% per annum depending on our leverage ratio.

(4)

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.


(5)	On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49.6 million upon closing. On April 10, 2015 we repaid $19.6 million of this loan.


(6)	On November 24, 2014 we amended our construction loan for Element LA to, among other things, increase availability from $65.5 million to $102.4 million 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.


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

(8)

On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million 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 $42.0 million of the loan through February 11, 2016. Effective March 4, 2015, the terms of this loan were amended and restated to introduce the ability to draw up to an additional $160.0 million for budgeted construction costs associated with our ICON development and to extend the maturity date from February 11, 2018 to March 4, 2019.


(9)	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. As a result, this loan bears interest at a rate equal to 3.7144% per annum.


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


(11)	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 $7.3 million.


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

PORTFOLIO DATA

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾



			Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
Location	Submarket	Square Feet⁽²⁾	Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
SAME-STORE
Greater Seattle, Washington
Met Park North	Lake Union	190,748	95.4	%	95.4	%	$	4,866,998	$	26.75
Northview	Lynnwood	182,009	82.8		82.8		3,200,837		21.24
505 First Avenue	Pioneer Square	288,140	96.5		96.5		5,778,605		20.79
83 King Street	Pioneer Square	184,083	97.0		97.0		4,709,812		26.37
Subtotal		844,980	93.4	%	93.4	%	$	18,556,252	$	23.51
San Francisco Bay Area, California
1455 Market Street	San Francisco	1,025,833	99.7	%	99.7	%	$	30,084,536	$	29.41
222 Kearny Street	San Francisco	148,797	87.2		87.2		5,272,183		40.63
275 Brannan Street	San Francisco	54,673	100.0		100.0		3,074,137		56.23
625 Second Street	San Francisco	138,080	56.1		73.8		3,717,624		48.03
875 Howard Street	San Francisco	286,270	80.0		80.0		5,570,866		24.32
Rincon Center	San Francisco	580,850	90.5		91.2		22,123,410		42.06
Subtotal		2,234,503	91.3	%	92.6	%	$	69,842,756	$	34.24
Los Angeles, California
Pinnacle I	Burbank	393,777	87.1	%	89.1	%	$	14,273,972	$	41.60
Pinnacle II	Burbank	231,864	99.2		99.2		8,942,900		38.88
6922 Hollywood	Hollywood	205,523	85.7		85.7		7,907,408		44.88
Technicolor Building	Hollywood	114,958	100.0		100.0		4,549,302		39.57
Del Amo Office Building	Torrance	113,000	100.0		100.0		3,327,208		29.44
10900 Washington	West Los Angeles	9,919	100.0		100.0		379,699		38.28
10950 Washington	West Los Angeles	159,024	100.0		100.0		5,751,510		36.17
604 Arizona	West Los Angeles	44,260	100.0		100.0		1,922,857		43.44
9300 Wilshire	West Los Angeles	61,224	91.5		91.5		2,374,262		42.38
Subtotal		1,333,549	93.5	%	94.0	%	$	49,429,118	$	39.66
Total Same-Store		4,413,032	92.4	%	93.2	%	$	137,828,126	$	33.82
NON-SAME-STORE
Greater Seattle, Washington
Merrill Place	Pioneer Square	193,153	73.2	%	73.2	%	$	3,490,044	$	24.70
Subtotal		193,153	73.2	%	73.2	%	$	3,490,044	$	24.70
San Francisco Bay Area, California
3400 Hillview	Palo Alto	207,857	100.0	%	100.0	%	$	12,569,445	$	60.47
Clocktower Square	Palo Alto	100,344	96.9		96.9		5,924,138		60.95
Foothill Research	Palo Alto	195,376	100.0		100.0		12,132,115		62.10
Towers at Shore Center	Redwood Shores	334,483	93.7		95.4		25,513,997		81.37
901 Market Street	San Franciso	206,199	100.0		100.0		9,429,654		45.73
1740 Technology	San Jose Airport	206,876	99.1		99.1		6,972,212		34.00
Concourse	San Jose Airport	944,386	94.0		94.5		24,815,720		27.95
Skyport Plaza	San Jose Airport	418,086	99.1		99.1		9,414,300		22.72
Campus Center	Silicon Valley	471,580	100.0		100.0		14,713,296		31.20
Subtotal		3,085,187	97.2	%	97.5	%	$	121,484,877	$	40.51
Los Angeles, California
3401 Exposition	West Los Angeles	63,376	100.0	%	100.0	%	$	2,547,715	$	40.20
Element LA	West Los Angeles	284,037	100.0		100.0		14,960,821		52.67
Subtotal		347,413	100.0	%	100.0	%	$	17,508,536	$	50.40
Total Non-Same-Store		3,625,753	96.2	%	94.7	%	$	142,483,457	$	40.85
Total Stabilized		8,038,785	94.1	%	94.7	%	$	280,311,583	$	37.06

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾—CONTINUED

			Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
Location	Submarket	Square Feet⁽²⁾	Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
LEASE-UP
San Francisco Bay Area, California
Bay Park Plaza	Burlingame	260,183	83.4	%	83.4	%	$	6,767,317	$	31.18
One Bay Plaza	Burlingame	195,739	75.2		77.5		4,827,751		32.81
Metro Center	Foster City	730,215	58.9		59.7		18,075,508		42.01
2180 Sand Hill Road	Palo Alto	45,613	56.0		56.0		2,148,609		84.11
Embarcadero Place	Palo Alto	197,402	67.7		81.0		3,634,191		27.20
Lockheed	Palo Alto	46,759	91.7		91.7		1,651,286		38.49
Page Mill Center	Palo Alto	176,245	62.7		62.7		6,873,304		62.18
Palo Alto Square	Palo Alto	328,251	83.3		83.3		17,386,960		63.56
333 Twin Dolphin Plaza	Redwood Shores	182,789	72.9		72.9		5,596,003		42.00
555 Twin Dolphin Plaza	Redwood Shores	198,936	84.2		86.5		7,088,417		42.33
Shorebreeze	Redwood Shores	230,932	80.4		90.2		7,500,205		40.38
Skyway Landing	Redwood Shores	247,173	84.5		84.5		7,227,102		34.61
Bayhill Office Center	San Bruno	554,328	91.9		92.4		15,153,739		29.75
Gateway	San Jose Airport	608,625	83.1		84.8		13,719,016		27.13
Metro Plaza	San Jose Airport	456,921	82.7		82.7		10,499,971		27.79
Peninsula Office Park	San Mateo	510,456	72.6		82.3		13,997,755		37.75
Techmart Commerce	Silicon Valley	284,440	77.7		78.6		7,823,882		35.42
Total Lease-up		5,255,007	77.3	%	79.7	%	$	149,971,016	$	36.93

TOTAL IN-SERVICE		13,293,792	87.4	%	88.8	%	$	430,282,599	$	37.02

___________________________

(1)

Our in-service portfolio excludes the development, redevelopment, properties held-for-sale, and land properties described on pages 15 and 16. As of June 30, 2015, we had one office development property under construction, four office redevelopment properties under construction, and seven land properties (see pages 15 and 16). We define “lease-up” properties as properties we recently purchased, developed, or redeveloped that have not yet reached 92.0% 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 June 30, 2015, 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 June 30, 2015, 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 June 30, 2015. Annualized base rent does not reflect tenant reimbursements.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

IN-SERVICE OFFICE PORTFOLIO SUMMARY⁽¹⁾

			Occupied Square Feet	Percent Occupied⁽³⁾		Leased Square Feet	Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
Location	Properties	Square Feet⁽²⁾	Occupied Square Feet	Percent Occupied⁽³⁾		Leased Square Feet	Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
STABILIZED
Greater Seattle, Washington
Lake Union	1	190,748	181,934	95.4	%	181,934	95.4	%	$	4,866,998	$	26.75
Lynnwood	1	182,009	150,727	82.8		150,727	82.8		3,200,837		21.24
Pioneer Square	3	665,376	597,830	89.8		597,830	89.8		13,978,461		23.38
Subtotal	5	1,038,133	930,491	89.6	%	930,491	89.6	%	$	22,046,296	$	23.69
San Francisco Bay Area, California
Palo Alto	3	503,577	500,426	99.4	%	500,426	99.4	%	$	30,625,698	$	61.20
Redwood Shores	1	334,483	313,556	93.7		319,236	95.4		25,513,997		81.37
San Franciso	7	2,440,702	2,246,153	92.0		2,274,333	93.2		79,272,410		35.29
San Jose Airport	3	1,569,348	1,507,377	96.1		1,511,980	96.3		41,202,232		27.33
Silicon Valley	1	471,580	471,580	100.0		471,580	100.0		14,713,296		31.20
Subtotal	15	5,319,690	5,039,092	94.7	%	5,077,555	95.4	%	$	191,327,633	$	37.97
Los Angeles, California
Burbank	2	625,641	573,092	91.6	%	580,704	92.8	%	$	23,216,872	$	40.51
Hollywood	2	320,481	291,142	90.8		291,142	90.8		12,456,710		42.79
Torrance	1	113,000	113,000	100.0		113,000	100.0		3,327,208		29.44
West Los Angeles	6	621,840	616,636	99.2		616,636	99.2		27,936,864		45.31
Subtotal	11	1,680,962	1,593,870	94.8	%	1,601,482	95.3	%	$	66,937,654	$	42.00
Total Stabilized	31	8,038,785	7,563,453	94.1	%	7,609,528	94.7	%	$	280,311,583	$	37.06

LEASE-UP
San Francisco Bay Area, California
Burlingame	2	455,922	364,239	79.9	%	368,794	80.9	%	$	11,595,068	$	31.83
Foster City	1	730,215	430,223	58.9		435,770	59.7		18,075,508		42.01
Palo Alto	5	794,270	586,129	73.8		612,467	77.1		31,694,351		54.07
Redwood Shores	4	859,830	695,246	80.9		722,321	84.0		27,411,727		39.43
San Bruno	1	554,328	509,365	91.9		512,107	92.4		15,153,739		29.75
San Jose Airport	2	1,065,546	883,583	82.9		893,866	83.9		24,218,986		27.41
San Mateo	1	510,456	370,814	72.6		420,080	82.3		13,997,755		37.75
Silicon Valley	1	284,440	220,877	77.7		223,550	78.6		7,823,882		35.42
Total Lease-up	17	5,255,007	4,060,476	77.3	%	4,188,955	79.7	%	$	149,971,016	$	36.93

TOTAL IN-SERVICE	48	13,293,792	11,623,929	87.4	%	11,798,483	88.8	%	$	430,282,599	$	37.02

___________________________

Refer to footnotes on page 13.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

REDEVELOPMENT, DEVELOPMENT AND HELD-FOR-SALE OFFICE SUMMARY⁽¹⁾



		Estimated Square Feet⁽²⁾	Occupied Square Feet	Percent Occupied⁽³⁾		Leased Square Feet	Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
Location	Submarket	Estimated Square Feet⁽²⁾	Occupied Square Feet	Percent Occupied⁽³⁾		Leased Square Feet	Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
REDEVELOPMENT
Los Angeles, California
12655 Jefferson	West Los Angeles	93,952	—	—	%	—	—	%	$	—	$	—
3402 Pico	West Los Angeles	50,097	—	—		—	—		—		—
4th & Traction	Downtown Los Angeles	120,937	—	—		—	—		—		—
Subtotal		264,986	—	—	%	—	—	%	$	—	$	—
San Francisco Bay Area, California
Patrick Henry Drive	Silicon Valley	70,520	—	—	%	—	—	%	$	—	$	—
Subtotal		70,520	—	—	%	—	—	%	$	—	$	—
Total Redevelopment		335,506	—	—	%	—	—	%	$	—	$	—

DEVELOPMENT
Los Angeles, California
Icon — Building I Tower	Hollywood	323,000	—	—	%	—	—	%	$	—	$	—
Icon — Building II	Hollywood	90,000	—	—		—	—		—		—
Total Icon		413,000	—	—	%	—	—	%	$	—	$	—
Total Development		413,000	—	—	%	—	—	%	$	—	$	—

TOTAL		748,506	—	—	%	—	—	%	$	—	$	—

______________________________


(1)	Excludes in-service properties and land assets (see pages 12, 13, and 16).


(2)	Square footages have 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 June 30, 2015, 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 June 30, 2015, 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 June 30, 2015. Annualized base rent does not reflect tenant reimbursements.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

LAND PROPERTIES SUMMARY



Location	Submarket	Square Feet⁽¹⁾	Percent of Total
Greater Seattle, Washington
Merrill Place	Pioneer Square	166,800	6.4	%
Subtotal		166,800	6.4	%

San Francisco Bay Area, California
Skyport Plaza	San Jose	350,000	13.5	%
Campus Center	Silicon Valley	750,000	29.0
Subtotal		1,100,000	42.5	%

Los Angeles, California
Sunset Bronson—Lot A	Hollywood	300,000	11.6	%
Sunset Gower— Redevelopment	Hollywood	423,396	16.3
Element LA	West Los Angeles	500,000	19.3
3402 Pico	West Los Angeles	99,903	3.9
Subtotal		1,323,299	51.1	%

TOTAL		2,590,099	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.

Second Quarter 2015 Supplemental Operating and Financial Data

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	64.5	%	72.8	%	$	13,845,908	$	33.35
Sunset Bronson	299,098	35.5		69.4		7,395,912		35.06

TOTAL	869,568	100.0	%	71.6	%	$	21,241,820	$	33.93

______________________________

(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 razed 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 June 30, 2015.


(3)	Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended June 30, 2015, 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) the average square footage under lease during the 12 months ended June 30, 2015.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

CURRENT VALUE CREATION DEVELOPMENT PROJECTS

(Unaudited, $ in thousands, except square feet)

Estimated Construction Period

Project Costs⁽¹⁾

City

Start Date

Estimated Completion Date

Estimated

Stabilization Date⁽²⁾

Estimated Rentable Square Feet⁽³⁾

Total %Leased

Project Costs
as of 6/30/15

Total Estimated Project Costs

Estimated Initial Stabilized Yield on Project Costs⁽⁴⁾

UNDER CONSTRUCTION

Los Angeles, California

Icon — Building I Tower

Hollywood

Q4-2014

Q4-2016

Q2-2017

323,000

—

N/A

Icon — Building II

Hollywood

Q4-2014

Q3-2017

Q2-2018

90,000

—

N/A

Total Icon⁽⁵⁾

413,000

—

35,156

191,709

8.3%

12655 Jefferson

Playa Del Rey

Q2-2015

Q4-2015

Q2-2016

93,952

—

39,158

53,819

6.6%

Total Under Construction

506,952

74,314

245,528

FUTURE DEVELOPMENT PIPELINE

Los Angeles, California

Sunset Bronson — Lot A

Hollywood

TBD

300,000

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⁽⁶⁾

Santa Monica

TBD

99,903

N/A

TBD

4th & Traction

Los Angeles

TBD

120,937

N/A

TBD

San Francisco Bay Area, California

Skyport Plaza

San Jose

TBD

350,000

N/A

TBD

Campus Center

Milpitas

TBD

750,000

N/A

TBD

Greater Seattle, Washington

Merrill Place

Seattle

TBD

166,800

N/A

TBD

Total Future Development Pipeline

2,711,036

______________________________


(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 (92.0%).


(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 re-measurement or re-leasing.

(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)

The Icon development is comprised of a 14-story office tower (Icon - Building 1 Tower), a 5-story mid-rise office building (Icon - Building II), and 1,635 stall parking structure. The parking structure is scheduled to be completed within the fourth quarter of 2015. The estimated completion and stabilization dates for each of the buildings is reflected in the above table. Since the costs of the parking structure and certain other development costs are attributable to both buildings, estimated project costs and stabilized yield on project costs are shown on a combined basis for the entire Icon development. Total estimated project costs for Icon excludes land.


(6)	Estimated rentable square feet for 3402 Pico does not include a 50,097 square foot existing vacant building.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

SAME-STORE ANALYSIS⁽¹⁾

(Unaudited, tabular amounts in thousands, except number of properties and square feet)



	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014				% change		2015			2014				% change
Same-store office statistics⁽²⁾
Number of properties	19			19						19			19
Rentable square feet	4,413,032			4,413,032						4,413,032			4,413,032
Ending % leased	93.2		%	95.0		%		(1.9	)%	93.2		%	95.0		%		(1.9	)%
Ending % occupied	92.4		%	91.0		%		1.5	%	92.4		%	91.0		%		1.5	%
Average % occupied for the period	92.5		%	90.9		%		1.8	%	92.3		%	88.8		%		3.9	%

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	72.0		%	72.7		%		(1.0	)%	71.9		%	70.8		%		1.6	%

SAME-STORE ANALYSIS—GAAP BASIS

	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014				% change		2015			2014				% change
Same-store net operating income — GAAP basis
Total office revenues	$	46,185		$	45,183		⁽⁴⁾	2.2	%	$	91,577		$	86,412		⁽⁴⁾	6.0	%
Total media revenues	8,261			9,223				(10.4	)	18,150			18,759				(3.2	)
Total revenues	$	54,446		$	54,406			0.1	%	$	109,727		$	105,171			4.3	%

Total office expense	$	17,119		$	16,153			6.0	%	$	32,383		$	30,191			7.3	%
Total media expense	5,069			5,838				(13.2	)	11,074			11,843				(6.5	)
Total property expense	$	22,188		$	21,991			0.9	%	$	43,457		$	42,034			3.4	%

Same-store office net operating income — GAAP basis	$	29,066		$	29,030			0.1	%	$	59,194		$	56,221			5.3	%
NOI Margin	62.9		%	64.2		%		(2.0	)%	64.6		%	65.1		%		(0.8	)%
Same-store media net operating income — GAAP basis	$	3,192		$	3,385			(5.7	)%	$	7,076		$	6,916			2.3	%
NOI Margin	38.6		%	36.7		%		5.2	%	39.0		%	36.9		%		5.7	%
Same-store total property net operating income — GAAP basis	$	32,258		$	32,415			(0.5	)%	$	66,270		$	63,137			5.0	%
NOI Margin	59.2		%	59.6		%		(0.7	)%	60.4		%	60.0		%		0.7	%

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

SAME-STORE ANALYSIS⁽¹⁾—CONTINUED

(Unaudited, tabular amounts in thousands)



SAME-STORE ANALYSIS—CASH BASIS

	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014				% change		2015			2014				% change
Same-store net operating income — Cash basis
Total office revenues	$	44,990		$	39,748		⁽⁴⁾	13.2	%	$	86,686		$	77,634		⁽⁴⁾	11.7	%
Total media revenues	7,836			9,212				(14.9	)	17,291			18,759				(7.8	)
Total revenues	$	52,826		$	48,960			7.9	%	$	103,977		$	96,393			7.9	%

Total office expense	$	17,057		$	16,091			6.0	%	$	32,259		$	30,067			7.3	%
Total media expense	5,069			5,838				(13.2	)	11,074			11,843				(6.5	)
Total property expense	$	22,126		$	21,929			0.9	%	$	43,333		$	41,910			3.4	%

Same-store office net operating income — Cash basis	$	27,933		$	23,657			18.1	%	$	54,427		$	47,567			14.4	%
NOI Margin	62.1		%	59.5		%		4.4	%	62.8		%	61.3		%		2.4	%
Same-store media net operating income — Cash basis	$	2,767		$	3,374			(18.0	)%	$	6,217		$	6,916			(10.1	)%
NOI Margin	35.3		%	36.6		%		(3.6	)%	36.0		%	36.9		%		(2.4	)%
Same-store total property net operating income — Cash basis	$	30,700		$	27,031			13.6	%	$	60,644		$	54,483			11.3	%
NOI Margin	58.1		%	55.2		%		5.3	%	58.3		%	56.5		%		3.2	%

______________________________


(1)	“Same store” defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2014 and still owned and included in the stabilized portfolio as of June 30, 2015.


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


(3)	See page 17 for same-store media properties.


(4)	Amount excludes a one-time $1.6 million early lease termination fee income disclosed in the Q2-2014 earnings release.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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

(Unaudited, $ in thousands)



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Reconciliation to net income
Same-store office revenues — Cash basis	$	44,990		$	39,748		$	86,686		$	77,634
GAAP adjustments to office revenues — Cash basis	1,195			5,435			4,891			8,778
One time revenue adjustments per definition	—			1,610			—			1,610
Same-store office revenues — GAAP basis	$	46,185		$	46,793		$	91,577		$	88,022

Same-store media revenues — Cash basis	$	7,836		$	9,212		$	17,291		$	18,759
GAAP adjustments to media revenues — Cash basis	425			11			859			—
Same-store media revenues — GAAP basis	$	8,261		$	9,223		$	18,150		$	18,759

Same-store property revenues — GAAP basis	$	54,446		$	56,016		$	109,727		$	106,781

Same-store office expenses — Cash basis	$	17,057		$	16,091		$	32,259		$	30,067
GAAP adjustments to office expenses — Cash basis	62			62			124			124
Same-store office expenses — GAAP basis	$	17,119		$	16,153		$	32,383		$	30,191

Same-store media expenses — Cash basis	$	5,069		$	5,838		$	11,074		$	11,843
Same-store media expenses — GAAP basis	$	5,069		$	5,838		$	11,074		$	11,843

Same-store property expenses — GAAP basis	$	22,188		$	21,991		$	43,457		$	42,034

Same-store net operating income — GAAP basis	$	32,258		$	34,025		$	66,270		$	64,747
Non-Same Store GAAP net operating income	67,801			3,693			73,473			6,635
General and administrative	(10,373		)	(6,579		)	(19,573		)	(12,355		)
Depreciation and amortization	(73,592		)	(17,944		)	(90,750		)	(34,612		)
Income from operations	$	16,094		$	13,195		$	29,420		$	24,415
Interest expense	(14,113		)	(6,445		)	(19,606		)	(12,969		)
Interest income	48			11			101			20
Acquisition-related expenses	(37,481		)	—			(43,525		)	(105		)
Other expense	(40		)	(12		)	1			(13		)
Gain on sale of real estate	(591		)	—			22,100			—
Net loss from discontinued operations	—			(60		)	—			(126		)
Net income (loss)	$	(36,083	)	$	6,689		$	(11,509	)	$	11,222

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

NET OPERATING INCOME DETAIL Three Months Ended June 30, 2015 (Unaudited, $ in thousands)

	Same Store Office Properties⁽¹⁾			Non-Same Store Office Properties⁽²⁾			Development/ Redevelopment⁽³⁾			Lease-Up Properties⁽⁴⁾			Media & Entertainment⁽⁵⁾			Total Properties
Revenue
Rents
Cash	$	34,046		$	29,967		$	—		$	34,727		$	4,970		$	103,710
GAAP Revenue	1,195			6,065			—			14,053			425			21,738
Total Rents	$	35,241		$	36,032		$	—		$	48,780		$	5,395		$	125,448

Tenant Reimbursements	$	6,670		$	6,371		$	(30	)	$	4,733		$	252		$	17,996
Parking and Other	4,274			325			73			106			2,614			7,393
Total Revenue	$	46,185		$	42,728		$	43		$	53,619		$	8,261		$	150,837

Property Operating Expenses	17,119			11,531			112			17,819			5,069			51,650
Property GAAP Net Operating Income	$	29,066		$	31,197		$	(69	)	$	35,800		$	3,192		$	99,187

Square Feet	4,413,032			3,625,753			748,506			5,255,007			869,568			14,911,866
Ending % Leased	93.2		%	96.5		%	—		%	79.7		%	72.0		%	83.3		%
Ending % Occupied	92.4		%	96.2		%	—		%	77.3		%	72.0		%	82.1		%
NOI Margin	62.9		%	73.0		%	N/A			N/A			38.6		%	65.8		%
Property GAAP Net Operating Income	$	29,066		$	31,197		$	(69	)	$	35,800		$	3,192		$	99,186
Less : GAAP Revenue	(1,195		)	(6,065		)	—			(14,053		)	(425		)	(21,738		)
Add : GAAP Expense	62			426			—			28			—			516
Property Cash Net Operating Income	$	27,933		$	25,558		$	(69	)	$	21,775		$	2,767		$	77,964

Net Income Reconciliation	Q2-2015
Property GAAP Net Operating Income	$	99,187
Broadway Note	898
Disposed Properties	51
Other income/inter-company eliminations	(77		)
Total GAAP Net Operating Income	$	100,059
General and administrative	(10,373		)
Depreciation and amortization	(73,592		)	(1) See page 12 for same-store office properties.
Income from Operations	$	16,094		(2) See page 12 for non-same-store properties.
Interest expense	(14,113		)	(3) See page 15 for development/redevelopment properties.
Interest income	48			(4) See page 13 for lease-up properties.
Acquisition-related expenses	(37,481		)	(5) See page 17 for same-store media properties.
Other (income) expenses	(40		)
Gain on sale of real estate	(591		)
Net Income	$	(36,083	)

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

OFFICE PORTFOLIO LEASING ACTIVITY



	Three Months Ended June 30, 2015			Six Months Ended June 30, 2015
Total Gross Leasing Activity⁽¹⁾
Rentable square feet	473,449			506,672
Gross New Leasing Activity
Rentable square feet	200,998			220,443
New cash rate	$	50.78		$	50.60
Gross Renewal Leasing Activity
Rentable square feet	272,451			286,229
Renewal cash rate	$	49.81		$	49.19
Total Leases Expired and Terminated
Contractual (scheduled) expiration (square feet)	126,379			198,248
Early termination (square feet)	114,567			143,007
Total	240,946			341,255
Net Absorption
Leased rentable square feet	(39,948		)	(120,812		)
Cash Rent Growth⁽²⁾
Expiring rate	$	37.73		$	37.57
New/renewal rate	$	51.05		$	50.63
Change	35.3		%	34.8		%
Straight-Line Rent Growth⁽³⁾
Expiring Rate	$	35.08		$	34.97
New/renewal rate	$	52.10		$	51.47
Change	48.5		%	47.2		%
Weighted Average Lease Terms
New (in months)	63			62
Renewal (in months)	40			38



Tenant Improvements and Leasing Commissions⁽⁴⁾	Lease Transaction Costs Per Square Foot
	Three Months Ended June 30, 2015				Six Months Ended June 30, 2015
	Total		Annual		Total		Annual
New leases	$	32.08	$	6.07	$	30.06	$	5.80
Renewal leases	$	12.83	$	3.88	$	12.21	$	3.86
Blended	$	21.00	$	5.07	$	19.98	$	4.94

______________________________

(1)

The 506,672 square feet executed in the six month period ended June 30, 2015 excludes: (a) a 5-year management agreement with Sodexo America to operate food services in 7,612 square feet (Suite 190) at Pinnacle I (this is a building amenity with no base rent); and (b) a 15-year lease extension with KTLA-TV for 94,205 square feet (Buildings 15, 16, 20 and 21, and Stage 6) at Sunset Bronson Studios, a part of our Media & Entertainment portfolio, scheduled to commence February 1, 2016. The current KTLA-TV lease comprised of 90,506 square feet will expire with a net effective rent of $1.50 (NNN) on January 31, 2016 while the lease extension comprised of 94,205 square feet will commence with a net effective rent of $2.39 (NNN) on February 1, 2016.


(2)	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.


(3)	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.


(4)	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.

Second Quarter 2015 Supplemental Operating and Financial Data

OFFICE PORTFOLIO COMMENCED LEASES WITH NON-RECURRING, UP-FRONT ABATEMENTS⁽¹⁾

Location

Submarket

Square Feet

Lease Start Date

Rent Start Date

Starting Base Rents⁽²⁾

Lease Expiration Date

San Francisco Bay Area, California

Metro Center

Foster City

33,439

1/1/2015

7/1/2015

39.00

6/30/2020

Bayhill Office Center

San Bruno

106,099

2/1/2015

10/1/2015

22.80

1/31/2025

Palo Alto Square

Palo Alto

13,040

2/1/2015

8/1/2015

79.20

12/31/2019

Clocktower square IV

Palo Alto

25,395

3/1/2015

6/1/2015

56.86

2/28/2018

Page Mill Center

Palo Alto

22,846

3/1/2015

8/1/2015

74.04

6/30/2020

Foothill Research Center

Palo Alto

85,910

3/1/2015

10/1/2015

61.80

2/28/2025

Palo Alto Square

Palo Alto

13,291

3/1/2015

9/1/2015

78.00

2/28/2025

Metro Center

Foster City

18,803

3/1/2015

10/1/2015

39.00

2/28/2022

Peninsula Office Park

San Mateo

27,737

5/1/2015

9/1/2015

46.20

4/30/2020

Skyway Landing

Redwood Shores

17,555

6/1/2015

10/1/2015

45.00

5/31/2018

Los Angeles, California

Element LA

West Los Angeles

284,037

4/1/2015

10/1/2015

52.67

3/31/2030

______________________________


(1)	Consists of leases greater than 10,000 square feet which commenced on or prior to June 30, 2015, with three or more months of up-front free rent resulting in a rent start date after the commencement of the three month period ending June 30, 2015.

(2)

Stated per leased square foot. 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 June 30, 2015, and (ii) 12, by (iii) the leased square footage. Base rents do not include tenant reimbursements.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

QUARTERLY UNCOMMENCED/BACKFILL — NEXT EIGHT QUARTERS⁽¹⁾

	Q3 2015			Q4 2015			Q1 2016			Q2 2016			Q3 2016			Q4 2016			Q1 2017			Q2 2017
Location	SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF	Starting Rent/sf⁽²⁾		SF⁽²⁾	Starting Rent/sf⁽²⁾
Greater Seattle, Washington
Lake Union	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Lynnwood	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Pioneer Square	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Subtotal	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
San Francisco Bay Area, California
Burlingame	—	$	—	4,555	$	39.00	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Foster City	3,358	64.20		2,189	63.00		—	—		—	—		—	—		—	—		—	—		—	—
Palo Alto	26,338	42.09		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Redwood Shores	12,465	59.03		—	—		20,290	54.00		—	—		—	—		—	—		—	—		—	—
San Bruno	5,600	45.31		—	—		—	—		—	—		—	—		—	—		—	—		—	—
San Francisco	6,486	46.96		24,545	57.00		—	—		—	—		—	—		—	—		—	—		38,739	70.84
San Jose Airport	14,886	33.60		—	—		53,624	51.54		—	—		—	—		—	—		—	—		—	—
San Mateo	49,266	49.20		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Silicon Valley	3,771	45.52		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Subtotal	122,170	$	46.77	31,289	$	54.80	73,914	$	52.22	—	$	—	—	$	—	—	$	—	—	$	—	38,739	$	70.84
Los Angeles, California
Burbank	7,612	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Downtown Los Angeles	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Hollywood	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Torrance	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
West Los Angeles	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Subtotal	7,612	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
TOTAL	129,782	$	44.03	31,289	$	54.80	73,914	$	52.22	—	$	—	—	$	—	—	$	—	—	$	—	38,739	$	70.84

______________________


(1)	Consists of (i) uncommenced leases, defined as new leases with respect to vacant space, and (ii) backfill leases, defined as new leases with respect to occupied space, in either case executed on or prior to June 30, 2015 but with commencement dates after June 30, 2015 and within the next eight quarters.


(2)	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. Base rents do not include tenant reimbursements. Rent commencement dates do not reflect up-front free rents, if any.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

QUARTERLY OFFICE LEASE EXPIRATIONS — NEXT EIGHT QUARTERS

	Q3 2015⁽¹⁾			Q4 2015			Q1 2016			Q2 2016			Q3 2016			Q4 2016			Q1 2017			Q2 2017
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⁾
Greater Seattle, Washington
Lake Union	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	600	$	43.70	—	$	—	—	$	—
Lynnwood	—	—		—	—		—	—		59,022	18.75		—	—		—	—		—	—		—	—
Pioneer Square	6,547	21.25		26,001	23.69		19,445	26.51		—	—		11,995	26.96		8,349	25.67		6,000	28.50		—	—
Subtotal	6,547	$	21.25	26,001	$	23.69	19,445	$	26.51	59,022	$	18.75	11,995	$	26.96	8,949	$	26.88	6,000	$	28.50	—	$	—
San Francisco Bay Area, California
Burlingame	14,365	$	28.83	13,295	$	27.71	2,731	$	33.99	13,538	$	26.85	6,692	$	30.96	6,590	$	31.17	—	$	—	10,162	$	38.26
Foster City	46,476	17.24		13,259	36.17		4,485	83.52		694	58.71		12,865	41.93		13,068	44.18		39,294	39.48		7,868	53.94
Palo Alto	46,306	42.40		—	—		21,899	33.62		96,838	31.81		39,199	44.45		36,150	37.02		80,944	76.30		25,952	65.30
Redwood Shores	54,145	44.10		67,993	36.32		31,039	28.65		84,070	37.10		43,718	116.13		58,986	45.08		12,894	30.11		43,107	52.72
San Bruno	19,875	26.60		16,976	36.37		4,460	25.96		34,100	34.90		4,771	37.92		54,649	29.81		3,129	28.68		10,770	38.97
San Francisco	28,260	41.21		27,091	15.07		3,332	35.00		47,617	33.60		22,283	37.79		3,515	37.73		162,180	35.53		32,621	34.88
San Jose Airport	94,865	20.92		173,631	28.60		98,434	28.59		60,847	28.78		81,863	30.10		117,839	28.28		161,400	30.67		91,865	29.74
San Mateo	5,445	31.16		12,709	40.42		4,563	43.28		43,779	36.97		10,020	40.20		9,583	41.46		4,930	45.76		21,678	41.77
Silicon Valley	16,936	39.99		7,685	37.30		13,763	34.53		12,760	29.36		15,471	33.72		14,172	35.90		—	—		4,750	38.28
Subtotal	326,673	$	30.89	332,639	$	30.39	184,706	$	31.47	394,243	$	33.33	236,882	$	50.56	314,552	$	34.27	464,771	$	41.19	248,773	$	40.83
Los Angeles, California
Burbank	—	$	—	—	$	—	—	$	—	—	$	—	109,323	$	43.51	9,005	$	56.83	—	$	—	—	$	—
Downtown Los Angeles	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
Hollywood	330	18.73		—	—		12,820	40.56		—	—		3,378	42.07		—	—		—	—		2,664	65.95
Torrance	—	—		—	—		—	—		—	—		—	—		—	—		—	—		—	—
West Los Angeles	590	23.40		2,749	43.75		4,364	45.21		33,031	31.31		—	—		2,853	39.96		—	—		8,527	44.67
Subtotal	920	$	21.72	2,749	$	43.75	17,184	$	41.74	33,031	$	31.31	112,701	$	43.47	11,858	$	52.77	—	$	—	11,191	$	49.73
TOTAL	334,140	$	30.68	361,389	$	30.01	221,335	$	31.83	486,296	$	31.42	361,578	$	47.57	335,359	$	34.73	470,771	$	41.03	259,964	$	41.21

______________________


(1)	Q3 2015 expiring square footage does not include 75,441 square feet that expired on June 30, 2015.


(2)	Calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease expiration date, and (ii) 12, by (iii) the leased square footage. Base rents do not include tenant reimbursements.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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	2,243,815	16.0	%			—	%	$	—	$	—
2015	770,970	5.5		23,239,202		5.3		30.14		30.28
2016	1,404,568	10.0		49,758,966		11.3		35.43		36.43
2017	2,202,875	15.7		73,162,539		16.6		33.21		35.23
2018	1,225,197	8.7		43,979,769		10.0		35.90		39.70
2019	1,973,883	14.1		72,148,879		16.4		36.55		41.22
2020	799,041	5.7		32,287,805		7.3		40.41		47.99
2021	1,012,072	7.2		38,114,997		8.7		37.66		44.38
2022	184,814	1.3		8,037,395		1.8		43.49		58.68
2023	664,832	4.7		20,804,847		4.7		31.29		38.94
2024	123,907	0.9		6,509,272		1.5		52.53		61.56
Thereafter	1,149,188	8.2		62,238,929		14.2		54.16		65.43
Building management use	112,582	0.8		—		—		—		—
Signed leases not commenced⁽⁴⁾	174,554	1.2		9,224,714		2.2		52.85		59.27
Total/Weighted Average	14,042,298	100.0	%	$	439,507,314	100.0	%	$	37.25	$	41.98

______________________________


(1)	Rent data for our office properties is presented on an annualized basis without regard to cancellation options. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) as of June 30, 2015, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.


(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 June 30, 2015.


(3)	Annualized base rent per square foot at expiration for all lease expiration years use 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 June 30, 2015.

(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 on space not occupied as of June 30, 2015 and is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under uncommenced leases for vacant space as of June 30, 2015, divided by (ii) square footage under uncommenced leases as of June 30, 2015.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

FIFTEEN LARGEST OFFICE TENANTS



Tenant	Property	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
Google, Inc.⁽²⁾	Various	2	2	Various	305,729	2.2%	$	18,617,934	4.3%
Weil, Gotshal & Manges LLP	Towers at Shore Center	1	1	8/31/2026	101,000	0.7	15,640,035		3.6
Riot Games, Inc.	Element LA	1	1	3/31/2030	284,037	2.0	14,960,821		3.5
Cisco Systems, Inc.⁽³⁾	Various	2	2	Various	474,576	3.4	14,808,569		3.4
Square	1455 Market Street	1	1	9/27/2023	334,284	2.4	10,604,158		2.5
Salesforce.com⁽⁴⁾	Rincon Center	1	1	Various	234,699	1.7	10,551,285		2.4
Uber Technologies, Inc.	1455 Market Street	1	1	2/28/2025	232,290	1.7	9,860,339		2.3
Warner Bros. Entertainment	Pinnacle II	1	1	12/31/2021	230,000	1.6	8,942,900		2.1
Qualcomm Incorporated	Skyport Plaza	2	1	7/31/2017	365,502	2.6	8,450,298		2.0
Warner Music Group	Pinnacle I	1	1	12/31/2019	195,166	1.4	8,005,578		1.9
EMC Corporation⁽⁵⁾	Various	2	2	Various	294,756	2.1	7,370,001		1.7
Stanford⁽⁶⁾	Various	2	2	Various	89,281	0.6	5,971,358		1.4
AIG	Rincon Center	1	1	7/31/2017	132,600	0.9	5,967,000		1.4
GSA⁽⁷⁾	Various	5	4	Various	183,709	1.3	5,573,962		1.3
NFL Enterprises⁽⁸⁾	Various	2	2	6/30/2019	137,305	1.0	5,256,074		1.2
TOTAL		25	23		3,594,934	25.6%	$	150,580,312	35.0%

______________________________


(1)	Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of June 30, 2015, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.


(2)	Google, Inc. expirations by property and square footage: (1) 207,857 square feet at 3400 Hillview expiring on November 30, 2021 and (2) 97,872 square feet at Foothill Research Center expiring on February 28, 2025.


(3)	Cisco Systems, Inc. expirations by property and square footage: (1) 2,996 square feet at Concourse expiring March 31, 2018 and (2) 471,580 square feet at Campus Center expiring on December 19, 2019.

(4)

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) 76,004 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.


(5)	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 505 First expiring on October 18, 2021; and (3) 42,954 square feet at 505 First expiring on December 31, 2023.


(6)	Stanford expirations by property and square footage: (1) Stanford Healthcare 63,201 square feet at Page Mill Center expiring June 30, 2019 and (2) Stanford University 26,080 square feet at Palo Alto Square expiring on December 31, 2019.


(7)	GSA expirations by property and square footage: (1) 71,729 square feet at 1455 Market Street expiring on February 19, 2017; (2) 5,906 square feet at 901 Market Street expiring on April 30, 2017; (3) 28,993 square feet at Northview expiring on April 4, 2020; 33,582 square feet at Rincon Center expiring May 31, 2020; and (4) 43,499 square feet at 901 Market Street expiring on July 31, 2021.


(8)	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.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

OFFICE PORTFOLIO DIVERSIFICATION



	Total	Annualized Rent as
Industry	Square Feet⁽¹⁾	of Percent of Total
Business Services	1,028,531	8.2	%
Educational	87,748	0.6
Financial Services	434,499	1.8
Insurance	394,510	3.4
Legal	738,642	10.9
Media & Entertainment	1,210,028	11.0
Other	1,128,617	8.9
Real Estate	102,587	0.9
Retail	777,930	5.2
Technology	5,030,329	43.5
Advertising	122,724	0.9
Government	302,488	2.1
Healthcare	265,297	2.6
TOTAL	11,623,930	100.0	%

______________________________


(1)	Does not include signed leases not commenced.

Hudson Pacific Properties, Inc.

Second Quarter 2015 Supplemental Operating and Financial Data

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. 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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Form 8-K Hudson Pacific Propertie For: Aug 06

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