Form 8-K Hudson Pacific Propertie For: Aug 04 Filed by: Hudson Pacific Properties, L.P.

August 4, 2016 8:56 AM

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 4, 2016

_________________________________

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., Ninth 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 4, 2016, 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, 2016. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on August 4, 2016, 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, 2016 and made available on our Web site certain supplemental information relating to our financial results for the quarter ended June 30, 2016.

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 4, 2016 regarding the Company’s financial results for the quarter ended June 30, 2016.
99.2**		Supplemental Operating and Financial Data for the quarter ended June 30, 2016.



**	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 4, 2016	By:	/s/ Mark T. Lammas
			Mark T. Lammas
			Chief Financial Officer, Chief Financial Officer and Treasurer

EXHBIT INDEX



Exhibit No.		Description
99.1**		Press release dated August 4, 2016 regarding the Company’s financial results for the quarter ended June 30, 2016.
99.2**		Supplemental Operating and Financial Data for the quarter ended June 30, 2016.



**	Furnished herewith.

Hudson Pacific Properties Reports Strong Second Quarter 2016 Financial Results

Executed Over 970,000 Square Feet Of Leases

Achieved GAAP And Cash Rent Spreads Of 58% And 49%

Los Angeles, CA, August 4, 2016—Hudson Pacific Properties, Inc. (the “Company,” or “Hudson Pacific”) (NYSE: HPP) today announced financial results for the second quarter ended June 30, 2016.

Second Quarter Highlights


•	Net income attributable to common stockholders of $0.8 million, or $0.01 per diluted share, compared to net loss of $25.2 million, or $(0.28) per diluted share, a year ago;


•	FFO, excluding specified items, of $62.9 million, or $0.43 per diluted share, compared to $68.4 million, or $0.47 per diluted share, a year ago;


•	Executed new and renewal leases totaling 970,770 square feet, consisting of 237,510 square feet of new leases and 733,260 square feet of renewal leases;


•	Achieved GAAP and cash rent growth on new and renewal leases of 57.6% and 48.9%, respectively;


•	Increased in-service office portfolio leased rate to 91.1% as of June 30, 2016, up from 90.7% as of March 31, 2016 and 88.8% a year ago;


•	Sold One Bay Plaza in Burlingame, California and Patrick Henry Drive in Santa Clara, California for a combined total of $72.4 million before credits, prorations and closing costs; and


•	Declared and paid a quarterly dividend of $0.20 per share on common stock.

“Our second quarter results include over 970,000 square feet of deals at cash rent spreads close to 50%, underscoring the strength of our leasing pipeline and our team’s ability to execute,” said Victor Coleman, Hudson Pacific Properties’ Chairman and CEO. “Year-to-date we have leased an impressive 1.8 million square feet, with the preponderance of that activity, nearly 75%, in our Bay Area assets.”

Coleman added, “We continue to take advantage of demand from well-qualified buyers for Bay Area assets. In the second quarter, we sold two additional former-Blackstone portfolio properties, One Bay Plaza and Patrick Henry Drive, both at premiums to our original purchase prices. We are focused on execution of lease-up and value creation within our existing portfolio, but will evaluate very select, strategic acquisition opportunities, primarily in the Los Angeles and Seattle markets. Our recent purchase of 11601 Wilshire Boulevard exemplifies this approach.”

Financial Results

The Company reported net income attributable to common stockholders of $0.8 million, or $0.01 per diluted share, for the three months ended June 30, 2016, compared to net loss attributable to common stockholders of $25.2 million, or $(0.28) per diluted share, for the three months ended June 30, 2015.

Funds From Operations (FFO), excluding specified items, for the three months ended June 30, 2016 totaled $62.9 million, or $0.43 per diluted share, compared to FFO, excluding specified items, of $68.4 million, or $0.47 per share, a year ago. Specified items for the second quarter of 2016 consisted of acquisition-related expense of $0.1 million, or $0.0 per diluted share. Specified items for the second quarter of 2015 consisted of acquisition-related expense of $37.5 million, or $0.26 per diluted share.

FFO, including specified items, for the three months ended June 30, 2016 totaled $62.9 million, or $0.43 per diluted share, compared to $30.9 million, or $0.21 per diluted share, a year ago.

Combined Operating Results For The Three Months Ended June 30, 2016

Total revenue during the second quarter increased 1.6% to $154.3 million from $151.8 million for the same quarter a year ago. Total operating expenses decreased 0.9% to $134.5 million from $135.7 million for the same quarter a year

ago. As a result, income from operations increased 23.1% to $19.8 million from $16.1 million for the same quarter a year ago. The primary reasons for the changes in total revenue and operating expenses are discussed below in connection with the Company’s segment operating results.

Interest expense during the second quarter increased 24.8% to $17.6 million from $14.1 million for the same quarter a year ago. The Company had $2.3 billion and $2.1 billion of notes payable, excluding net deferred financing costs and net loan premium, at June 30, 2016 and June 30, 2015, respectively.

The Company had $0.4 million of unrealized loss on the ineffective portion of derivatives, with nothing comparable for the same quarter a year ago. The Company also had $0.1 million of acquisition-related expense associated with the acquisition of 11601 Wilshire Boulevard completed during the third quarter of 2016 compared to $37.5 million of acquisition-related expense associated with the acquisition of the EOP Northern California portfolio in the second quarter of 2015.

Segment Operating Results For The Three Months Ended June 30, 2016

Office Properties

Total revenue at the Company’s office properties increased 0.6% to $144.4 million from $143.6 million for the same quarter a year ago. The increase was primarily the result of a $3.5 million increase in tenant recoveries to $21.3 million, partially offset by a decrease in rental revenue of $2.0 million to $118.0 million and in parking and other revenue of $0.7 million to $5.1 million. The increase in tenant recoveries largely resulted from a corresponding increase in operating expenses discussed below, partially offset by a loss of tenant recoveries stemming from the sales of Bay Park Plaza in third quarter of 2015, Bayhill Office Center in the first quarter of 2016 and One Bay Plaza in the second quarter of 2016. The decrease in rental, parking and other revenue was also primarily due to these asset sales, though higher rental revenue on improved rents and occupancy throughout the Company’s in-service portfolio partially offset this decrease.

Office property operating expenses increased 5.1% to $49.1 million from $46.7 million for the same quarter a year ago. The expense increase primarily resulted from higher occupancy in our in-service office portfolio, partially offset by the sales of Bay Park Plaza, Bayhill Office Center and One Bay Plaza.

Net operating income with respect to the Company’s 30 same-store office properties for the second quarter increased 6.6% on a GAAP basis and 15.5% on a cash basis.

At June 30, 2016, the Company’s stabilized and in-service office portfolio was 96.5% and 91.1% leased, respectively. During the quarter, the Company executed 70 new and renewal leases totaling 970,770 square feet.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties increased 20.1% to $9.9 million from $8.3 million for the same quarter a year ago largely due to a $1.5 million increase in rental revenue to $6.9 million. The increase in rental revenue stemmed from higher occupancy at Sunset Gower and Sunset Bronson. In addition, stage and office space at Sunset Bronson were taken off-line for improvements during the three months ended June 30, 2015, and were fully occupied over the three months ended June 30, 2016. Total media and entertainment operating expenses increased 24.2% to $6.3 million from $5.1 million for the same quarter a year ago, also largely due to higher occupancy at Sunset Gower and Sunset Bronson.

Media and entertainment net operating income in the second quarter increased by 13.6% on a GAAP basis and 26.2% on a cash basis.

As of June 30, 2016, the trailing 12-month occupancy for the Company’s media and entertainment portfolio increased to 85.3% from 76.5% for the period ended June 30, 2015.

Balance Sheet

At June 30, 2016, the Company had total assets of $6.3 billion, including unrestricted cash and cash equivalents of $337.4 million. At June 30, 2016, the Company had $400.0 million of total capacity under its unsecured revolving credit facility, of which $250.0 million had been drawn.

Major Leasing

Executed Significant Leases Throughout Portfolio

Qualcomm, a leading 3G and next-generation wireless technology company, renewed its lease through July 2022 at Skyport Plaza office campus in North San Jose, California. Qualcomm has maintained offices at the property for nearly four years, and will continue to occupy a total of 365,502 square feet in two buildings.

The General Services Administration renewed its lease on behalf of the U.S. Army Corps of Engineers (USACE) at 1455 Market Street in San Francisco, California. USACE, a provider of public and military engineering services, will continue to occupy 71,729 square feet through February 2019.

RGN-National (Regus) Business Centers, which owns/operates flex office space worldwide, renewed their lease for 44,957 square feet through March 2022 at Gateway office campus in North San Jose, California.

BrightEdge Technologies, a leading SEO company and platform, executed a lease for 36,542 square feet through June 2024 at 989 Hillsdale Avenue, part of Metro Center office complex in Foster City, California.

NFL Enterprises, on behalf of NFL Media, executed a lease for another 30,300 square feet, backfilling the former SDI media space at 10950 Washington Boulevard in Culver City, California. NFL Media will now occupy through June 2019 the entirety of 10950 Washington Boulevard, as well as the adjacent 10900 Washington Boulevard, for a total of 167,605 square feet.

Cloud computing company Salesforce.com executed a lease for an additional 23,683 square feet at Rincon Center in San Francisco, California. The deal backfilled the entire space formerly occupied by Intrax, and brings Salesforce.com’s total occupancy at Rincon Center to 261,250 square feet.

Dispositions

Sold Additional EOP Northern California Assets

On April 7, 2016, the Company sold Patrick Henry Drive, a 70,520-square-foot R&D office building located at 3055 Patrick Henry Drive in Santa Clara, California for $19.0 million before certain credits, prorations and closing costs. KT Properties Urban, Inc. acquired the property, which was entirely vacant at time of sale, in an all-cash, off-market transaction.

On June 1, 2016, the Company sold One Bay Plaza, a 195,739-square-foot office tower located at 1350 Bayshore Highway in Burlingame, California to a joint venture between Harvest Properties and New York Life Real Estate Investors for $53.4 million before credits, prorations and closing costs.

The Company sold both assets at premiums to their original purchase prices when acquired as part of the EOP Northern California portfolio acquisition on April 1, 2015.

Financings

Financings & Refinancings

On May 3, 2016, the Company drew all $175.0 million of its five-year and $125.0 million of its seven-year unsecured term loan credit facilities entered into in November of last year. The Company used loan proceeds to repay floating rate indebtedness, including the $30.0 million loan secured by 901 Market Street, $60.0 million outstanding balance under its revolving credit facility, $110.0 million of the outstanding balance under its loan secured by Sunset Gower/Sunset Bronson, and $100.0 million of its unhedged existing five-year term loan.

On June 6, 2016, the Company fully refinanced project-level financing associated with Pinnacle II in Burbank, with a 10-year, $87.0 million loan bearing interest of 4.30% per annum. The refinancing successfully replaced the loan previously secured by Pinnacle II, which was bearing interest of 6.31% per annum.

Repayment & Funding Of Select Debt Investments

On June 14, 2016, the Company was fully repaid on its $28.5 million participation in a $120.0 million bridge loan originated by Canyon Capital Realty Advisors for the acquisition and redevelopment of the historic Broadway Trade Center in Los Angeles, California.

On June 16, 2016, the Company funded $28.4 million of a $140.0 million first mortgage loan, originated by a limited liability company managed by Mesa West Capital, to finance China-based technology company LeEco’s acquisition of a 48.6-acre land site in Santa Clara, California. LeEco plans to develop a three-million-square-foot global headquarters campus at this location.

Equity Offering

Completed Common Stock Public Offering

On May 16, 2016, the Company completed a public offering of 10,600,000 shares of its common stock, consisting of 10,117,223 shares offered by the Company and 482,777 shares offered by funds affiliated with Farallon Capital Management, L.L.C. (collectively, the “Farallon Funds”). The Company used the $294.2 million of net proceeds to acquire 10,000,000 common units of limited partnership interest in its operating partnership, Hudson Pacific Properties, L.P. (the “Operating Partnership”), from certain entities affiliated with The Blackstone Group L.P., and 117,223 common units of limited partnership interest in the Operating Partnership from the Farallon Funds. The Company did not receive any proceeds from the sale of the shares of common stock in this offering by the Farallon Funds.

Dividend

Paid Common Dividend

The Company’s Board of Directors declared a dividend on its common stock of $0.20 per share for the second quarter of 2016. The dividends were paid on June 30, 2016 to stockholders of record on June 20, 2016.

Activities Subsequent to June 30, 2016

Acquired 11601 Wilshire Boulevard

On July 1, 2016, the Company acquired 11601 Wilshire Boulevard, a 500,475-square-foot Class A office tower in West Los Angeles, from real estate funds managed by Blackstone for $311.0 million before credits, prorations and closing costs. The Company intends to lease-up, renovate and improve operating efficiencies at the currently 82.7% occupied property, which has served as its headquarters for the last six years.

Completed $200.0 Million Private Placement

On July 6, 2016, the Company completed a private placement of debt yielding $200.0 million of gross proceeds. The Company applied net proceeds from $150.0 million of 3.98% senior guaranteed notes due July 6, 2026 to fund the 11601 Wilshire Boulevard acquisition. The Company expects to access the remaining $50.0 million, consisting of 3.66% senior guaranteed notes due September 15, 2023, on or before September 15, 2016 to repay amounts outstanding under its unsecured revolving credit facility or for general corporate purposes.

Completed Common Stock Public Offering

On July 21, 2016, the Company completed a public offering of 20,000,000 shares of its common stock, consisting of 19,195,373 shares offered by the Company and 804,627 shares offered by funds affiliated with the Farallon Funds. The Company used the $582.0 million of net proceeds to acquire 19,000,000 common units of limited partnership interest in the Operating Partnership, from certain entities affiliated with The Blackstone Group L.P., and 195,373 common units of limited partnership interest in the Operating Partnership from the Farallon Funds. The Company did not receive any proceeds from the sale of the shares of common stock in this offering by the Farallon Funds.

2016 Outlook

Guidance Increased

The Company is increasing its full-year 2016 FFO guidance from its previously announced range of $1.68 to $1.76 per diluted share, excluding specified items, to a revised range of $1.71 to $1.77 per diluted share, excluding specified items. The guidance reflects the Company’s FFO for the second quarter ended June 30, 2016 of $0.43 per diluted share, excluding specified items, as well as the transactional activity referenced in this press release and in earlier announcements, including the sale of 12655 Jefferson Boulevard in the fourth quarter, and the anticipated funding of $50.0 million of 3.66% senior guaranteed notes on or before September 15, 2016 to repay amounts outstanding under its unsecured revolving credit facility or for general corporate purposes. This guidance also reflects the elimination of the ineffective portion of the interest rate swaps relating to $650.0 million of its five- and seven-year term loans due April of 2020 and 2022, respectively, through an increase in the underlying fixed rate by a weighted average of 12 basis points per annum. This guidance assumes full-year 2016 weighted average fully diluted common stock/units of 146,415,000. The full-year 2016 FFO estimate reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release, but otherwise excludes any impact from future unannounced or speculative acquisitions, dispositions, debt financings or repayments, recapitalizations, capital market activity or similar matters.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information under “2016 Outlook” above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, including, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding the Company’s second quarter 2016 results may be found in the Investor Relations section of the Company’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

The Company will hold a conference call to discuss second quarter 2016 financial results at 11:00 a.m. PT / 2:00 p.m. ET on August 4, 2016. 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 the Company’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 4, at 2:00 p.m. PT / 5:00 p.m. ET, through August 11, at 8:59 p.m. PT / 11:59 p.m. ET, by dialing (877) 870-5176 and entering the passcode 13640344. 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, plus 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 Pacific 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 Pacific has strategically assembled a portfolio totaling over 17 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 Pacific prioritizes tenant satisfaction and retention, providing highly customized build-outs and working proactively to accommodate tenants’ growth. Hudson Pacific 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, 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, 2015 filed with the Securities and Exchange Commission, or SEC, on February 26, 2016, 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

Vice President, Head of 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, 2016			December 31, 2015
	(Unaudited)
ASSETS
REAL ESTATE ASSETS
Land	$	1,252,484		$	1,252,484
Building and improvements	3,937,522			3,887,683
Tenant improvements	305,947			290,122
Furniture and fixtures	4,082			9,586
Property under development	247,682			218,438
Total real estate held for investment	5,747,717			5,658,313
Accumulated depreciation and amortization	(340,262		)	(267,855		)
Investment in real estate, net	5,407,455			5,390,458
Cash and cash equivalents	337,400			53,551
Restricted cash	19,166			18,010
Accounts receivable, net	10,550			21,048
Notes receivable, net	—			28,684
Straight-line rent receivables, net	70,529			59,408
Deferred leasing costs and lease intangible assets, net	293,191			314,483
Derivative assets	—			2,061
Goodwill	8,754			8,754
Prepaid expenses and other assets, net	49,209			27,278
Investment in unconsolidated entity	28,237			—
Assets associated with real estate held for sale	$	52,432		$	330,300
TOTAL ASSETS	$	6,276,923		$	6,254,035
LIABILITIES AND EQUITY
Notes payable, net	$	2,338,882		$	2,260,716
Accounts payable and accrued liabilities	104,156			82,405
Lease intangible liabilities, net	77,841			94,446
Security deposits	24,148			20,342
Prepaid rent	30,352			38,111
Derivative liabilities	26,478			2,010
Liabilities associated with real estate held for sale	5,267			16,791
TOTAL LIABILITIES	2,607,124			2,514,821
6.25% series A cumulative redeemable preferred units of the operating partnership	10,177			10,177
EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Common stock, $0.01 par value, 490,000,000 authorized, 99,385,084 shares and 89,153,780 shares outstanding at June 30, 2016 and December 31, 2015, respectively	993			891
Additional paid-in capital	1,998,361			1,710,979
Accumulated other comprehensive loss	(16,079		)	(1,081		)
Accumulated deficit	(41,470		)	(44,955		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	1,941,805			1,665,834
Non-controlling interest—members in consolidated entities	266,406			262,625
Non-controlling interest—units in the operating partnership	1,451,411			1,800,578
TOTAL EQUITY	3,659,622			3,729,037
TOTAL LIABILITIES AND EQUITY	$	6,276,923		$	6,254,035

Hudson Pacific Properties, Inc.

Combined Statements of Operations

(Unaudited, in thousands, except share data)



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues
Office
Rental	$	118,047		$	120,052		$	234,274		$	161,628
Tenant recoveries	21,303			17,790			41,836			23,854
Parking and other	5,050			5,716			10,582			11,011
Total office revenues	144,400			143,558			286,692			196,493
Media & Entertainment
Rental	6,857			5,394			12,885			10,861
Tenant recoveries	213			253			412			493
Other property-related revenue	2,810			2,556			7,779			6,665
Other	41			58			90			131
Total Media & Entertainment revenues	9,921			8,261			21,166			18,150
Total revenues	154,321			151,819			307,858			214,643
Operating expenses
Office operating expenses	49,091			46,691			96,794			63,826
Media & Entertainment operating expenses	6,295			5,069			12,247			11,074
General and administrative	13,016			10,373			25,519			19,573
Depreciation and amortization	66,108			73,592			134,476			90,750
Total operating expenses	134,510			135,725			269,036			185,223
Income from operations	19,811			16,094			38,822			29,420
Other expense (income)
Interest expense	17,614			14,113			34,865			19,606
Interest income	(73		)	(48		)	(86		)	(101		)
Unrealized loss on ineffective portion of derivative instruments	384			—			2,509			—
Acquisition-related expenses	61			37,481			61			43,525
Other (income) expense	(47		)	40			(23		)	(1		)
Total other expenses	17,939			51,586			37,326			63,029
Income (loss) before gains (loss) on sale of real estate	1,872			(35,492		)	1,496			(33,609		)
Gains (loss) on sale of real estate	2,163			(591		)	8,515			22,100
Net income (loss)	4,035			(36,083		)	$	10,011		$	(11,509	)
Net income attributable to preferred stock and units	(159		)	(3,195		)	(318		)	(6,390		)
Net income attributable to participating securities	(196		)	(80		)	(393		)	(150		)
Net income attributable to non-controlling interest in consolidated real estate entities	(2,396		)	(1,893		)	(4,341		)	(3,395		)
Net (income) loss attributable to common units in the operating partnership	(445		)	16,008			(1,867		)	15,412
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders	$	839		$	(25,243	)	$	3,092		$	(6,032	)
Basic and diluted per share amounts:
Net income attributable to common stockholders’ per share—basic	$	0.01		$	(0.28	)	$	0.03		$	(0.07	)
Net income attributable to common stockholders’ per share—diluted	$	0.01		$	(0.28	)	$	0.03		$	(0.07	)
Weighted average shares of common stock outstanding—basic	95,145,496			88,894,258			92,168,432			82,906,087
Weighted average shares of common stock outstanding—diluted	95,995,496			88,894,258			93,000,432			82,906,087
Dividends declared per share of common stock	$	0.200		$	0.125		$	0.400		$	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,
	2016			2015			2016			2015
Reconciliation of net income to Funds From Operations (“FFO”):
Net income (loss)	$	4,035		$	(36,083	)	$	10,011		$	(11,509	)
Adjustments:
Depreciation and amortization of real estate assets	65,655			73,293			133,560			90,366
(Gains) loss on sale of real estate	(2,163		)	591			(8,515		)	(22,100		)
FFO attributable to non-controlling interests	(4,510		)	(3,696		)	(8,672		)	(7,008		)
Net income attributable to preferred stock and units	(159		)	(3,195		)	(318		)	(6,390		)
FFO to common stockholders and unitholders	$	62,858		$	30,910		$	126,066		$	43,359
Specified items impacting FFO:
Acquisition-related expenses	$	61		$	37,481		$	61		$	43,525
FFO (excluding specified items) to common stockholders and unitholders	$	62,919		$	68,391		$	126,127		$	86,884
Weighted average common stock/units outstanding—diluted	146,399			145,849			146,350			113,162
FFO per common stock/unit—diluted	$	0.43		$	0.21		$	0.86		$	0.38
FFO (excluding specified items) per common stock/unit—diluted	$	0.43		$	0.47		$	0.86		$	0.77

HUDSON PACIFIC PROPERTIES, INC.

SECOND QUARTER 2016

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 Northern and Southern California and the Pacific Northwest; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; the consequences of any possible future terrorist attacks; and other risks and uncertainties detailed in our Annual Report on Form 10-K for the year ended December 31, 2015 filed with the Securities and Exchange Commission on February 26, 2016. 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, 2015 filed with the Securities and Exchange Commission on February 26, 2016.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

TABLE OF CONTENTS



	Page
COMPANY BACKGROUND, RESEARCH COVERAGE AND CORPORATE DATA	3

CONSOLIDATED FINANCIAL RESULTS	6

Consolidated Balance Sheets	7
Consolidated Statements of Operations	8
Funds from Operations	9
Adjusted Funds from Operations	10
Debt Summary	11

PORTFOLIO DATA	13

In-Service Office Portfolio by Property	14
In-Service Office Portfolio Summary	16
Redevelopment, Development and Held-For-Sale Office Summary	17
Land Properties Summary	18
Media & Entertainment Portfolio Summary	19
Current Value Creation Development Projects	20
Same-store Analysis	22
Reconciliation of Same-store Property Net Operating Income to GAAP Net Income	24
Net Operating Income Detail	25
Office Portfolio Leasing Activity	26
Office Portfolio Commenced Leases with Non-Recurring, Up-Front Abatements	27
Quarterly Uncommenced / Backfill — Next Eight Quarters	28
Quarterly Office Lease Expirations — Next Eight Quarters	29
Office Lease Expirations — Annual	31
Fifteen Largest Office Tenants	32
Office Portfolio Diversification	33

DEFINITIONS	34

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

COMPANY BACKGROUND



CORPORATE 11601 Wilshire Boulevard, Ninth 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 (retired), 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
		Managing General Partner, Clarity Partners L.P.

EXECUTIVE AND SENIOR MANAGEMENT

Victor J. Coleman		Mark T. Lammas	Christopher Barton
Chief Executive Officer and President		Chief Operating Officer and Chief Financial Officer and Treasurer	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	Steve Jaffe
EVP, Leasing		Chief Accounting Officer	Chief Risk Officer

Josh Hatfield		Drew Gordon	Gary Hansel
EVP, Operations		SVP, Northern California	SVP, Southern California

David Tye			Elva Hernandez
SVP, Pacific Northwest			VP, Controller
INVESTOR RELATIONS
	Laura Campbell VP, Head of Investor Relations [email protected]

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data



RESEARCH COVERAGE

EQUITY RESEARCH COVERAGE

James Feldman	Barry Oxford	Alexander Goldfarb
Bank of America Merrill Lynch	D.A. Davidson	Sandler O'Neill + Partners
(646) 855-5808	(212) 240-9871	(212) 466-7937

Ross Smotrich	Craig Mailman	Nick Yulico
Barclay Capital	KeyBanc Capital Markets	UBS Investment Bank
(212) 526-2306	(917) 368-2316	(212) 713-3402

Ian Weissman	Richard Anderson	Blaine Heck
Credit Suisse	Mizuho Securities	Wells Fargo Securities
(212) 538-6889	(212) 205-8445	(443) 263-6516

David Rodgers		Sumit Sharma
Robert W. Baird & Company		Morgan Stanley
(216) 737-7341		(212) 761-7567

RATING AGENCIES

Stephen Boyd	Alice Chung	Anita Ogbara
Fitch Ratings	Moody’s Investor Service	Standard & Poor’s
(212) 908-9153	(212) 553-2949	(212) 438-5077

Hudson Pacific Properties, Inc.

Second Quarter 2016 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,” “our,” or “our Company”) 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. Our 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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Number of office properties owned	51			53			54			53			53
Office properties square feet⁽¹⁾	13,214,376			13,480,616			14,034,944			13,872,326			14,042,298
Stabilized office properties leased rate as of end of period⁽²⁾	96.5		%	95.8		%	95.3		%	94.5		%	94.7		%
In-Service office properties leased rate as of end of period⁽³⁾	91.1		%	90.7		%	90.1		%	89.5		%	88.8		%
Number of Media & Entertainment properties owned	2			2			2			2			2
Media & Entertainment square feet⁽¹⁾	879,652			879,652			879,652			879,652			879,652
Media & Entertainment leased rate as of end of period⁽⁴⁾	85.3		%	81.6		%	78.5		%	76.8		%	76.5		%
Number of land assets owned	8			8			8			7			7
Land assets estimated square feet⁽⁵⁾	2,638,875			2,638,875			2,638,875			2,590,099			2,590,099
Market capitalization (in thousands):
Total pro-rata debt⁽⁶⁾	$	2,282,429		$	2,022,319		$	2,203,115		$	2,011,151		$	2,041,435
Series A Preferred Units	$	10,177		$	10,177		$	10,177		$	10,177		$	10,177
Series B Preferred Stock	$	—		$	—		$	—		$	145,000		$	145,000
Common equity capitalization⁽⁷⁾	$	4,300,917		$	4,249,186		$	4,116,264		$	4,197,190		$	4,135,927
Total market capitalization	$	6,593,523		$	6,281,682		$	6,329,556		$	6,363,518		$	6,332,539
Pro-rata debt/total market capitalization	34.6		%	32.2		%	34.8		%	31.6		%	32.2		%
Series A preferred units & pro-rata debt/total market capitalization	34.8		%	32.4		%	35.0		%	31.8		%	32.4		%
Common stock data (NYSE: HPP)
Range of closing prices⁽⁸⁾	$ 30.05 - 27.16			$ 22.97 - 29.35			$ 27.40 - 30.97			$ 27.70 - 31.68			$ 28.22 - 33.95
Closing price at quarter end	$	29.18		$	28.92		$	28.14		$	28.79		$	28.37
Weighted average fully diluted common stock\units outstanding (in thousands)⁽⁹⁾	146,399			145,894			145,946			145,902			145,849
Shares of common stock\units outstanding at end of period (in thousands)⁽¹⁰⁾	147,393			146,522			146,278			145,786			145,785

__________________________


(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 re-measurement or re-leasing. Please refer to the footnote on page 19 regarding the re-measurement of the media properties.


(2)	Stabilized office properties leased rate excludes the lease-up properties, redevelopment, development, properties held-for-sale, and land properties described on pages 15, 17 and 18.


(3)	In-service office properties leased rate includes the stabilized office properties and lease-up properties described on pages 14 and 15.


(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)	Represents total debt excluding a pro-rata share of debt allocable to the minority interest in the Pinnacle I & II joint venture, unamortized non-cash loan premium and deferred financing costs.


(7)	Common equity capitalization represents the shares of common stock (including unvested restricted shares), OP units outstanding and dilutive shares 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 stocks/units outstanding for the three-month periods ending June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015 and June 30, 2015 includes an estimate for projected executive stock grants under our 2013, 2014, 2015 and 2016 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 2013/2014/2015/2016 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 2013/2014/2015/2016 OPP stock grants or projected performance-based awards under our special one-time retention grants.

CONSOLIDATED FINANCIAL RESULTS

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

Consolidated Balance Sheets (in thousands, except share data)

	June 30, 2016			December 31, 2015
	(unaudited)
ASSETS
Total investment in real estate, net	$	5,407,455		$	5,390,458
Cash and cash equivalents	337,400			53,551
Restricted cash	19,166			18,010
Accounts receivable, net	10,550			21,048
Notes receivable, net	—			28,684
Straight-line rent receivables, net	70,529			59,408
Deferred leasing costs and lease intangible assets, net	293,191			314,483
Derivative assets	—			2,061
Goodwill	8,754			8,754
Prepaid expenses and other assets, net	49,209			27,278
Investment in unconsolidated entity	28,237			—
Assets associated with real estate held for sale	52,432			330,300
TOTAL ASSETS	$	6,276,923		$	6,254,035

LIABILITIES AND EQUITY
Notes payable, net	$	2,338,882		$	2,260,716
Accounts payable and accrued liabilities	104,156			82,405
Lease intangible liabilities, net	77,841			94,446
Security deposits	24,148			20,342
Prepaid rent	30,352			38,111
Derivative liabilities	26,478			2,010
Liabilities associated with real estate held for sale	5,267			16,791
TOTAL LIABILITIES	2,607,124			2,514,821

6.25% series A cumulative redeemable preferred units of the operating partnership	10,177			10,177

EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Common stock, $0.01 par value, 490,000,000 authorized, 99,385,084 shares and 89,153,780 shares outstanding at June 30, 2016 and December 31, 2015, respectively	993			891
Additional paid-in capital	1,998,361			1,710,979
Accumulated other comprehensive loss	(16,079		)	(1,081		)
Accumulated deficit	(41,470		)	(44,955		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	1,941,805			1,665,834
Non-controlling interest—members in consolidated entities	266,406			262,625
Non-controlling interest—units in the operating partnership	1,451,411			1,800,578
TOTAL EQUITY	3,659,622			3,729,037
TOTAL LIABILITIES AND EQUITY	$	6,276,923		$	6,254,035

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues
Office
Rental	$	118,047		$	120,052		$	234,274		$	161,628
Tenant recoveries	21,303			17,790			41,836			23,854
Parking and other	5,050			5,716			10,582			11,011
Total office revenues	144,400			143,558			286,692			196,493
Media & Entertainment
Rental	6,857			5,394			12,885			10,861
Tenant recoveries	213			253			412			493
Other property-related revenue	2,810			2,556			7,779			6,665
Other	41			58			90			131
Total Media & Entertainment revenues	9,921			8,261			21,166			18,150
Total revenues	154,321			151,819			307,858			214,643
Operating expenses
Office operating expenses	$	49,091		$	46,691		$	96,794		$	63,826
Media & Entertainment operating expenses	6,295			5,069			12,247			11,074
General and administrative	13,016			10,373			25,519			19,573
Depreciation and amortization	66,108			73,592			134,476			90,750
Total operating expenses	134,510			135,725			269,036			185,223
Income from operations	19,811			16,094			38,822			29,420
Other expense (income)
Interest expense	17,614			14,113			34,865			19,606
Interest income	(73		)	(48		)	(86		)	(101		)
Unrealized loss on ineffective portion of derivative instruments	384			—			2,509			—
Acquisition-related expenses	61			37,481			61			43,525
Other (income) expense	(47		)	40			(23		)	(1		)
Total other expenses	17,939			51,586			37,326			63,029
Income (loss) before gains (loss) on sale of real estate	1,872			(35,492		)	1,496			(33,609		)
Gains (loss) on sale of real estate	2,163			(591		)	8,515			22,100
Net income (loss)	$	4,035		$	(36,083	)	$	10,011		$	(11,509	)
Net income attributable to preferred stock and units	(159		)	(3,195		)	(318		)	(6,390		)
Net income attributable to participating securities	(196		)	(80		)	(393		)	(150		)
Net income attributable to non-controlling interest in consolidated real estate entities	(2,396		)	(1,893		)	(4,341		)	(3,395		)
Net (income) loss attributable to common units in the operating partnership	(445		)	16,008			(1,867		)	15,412
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders	$	839		$	(25,243	)	$	3,092		$	(6,032	)
Basic and diluted per share amounts:
Net income attributable to common stockholders’ per share—basic	$	0.01		$	(0.28	)	$	0.03		$	(0.07	)
Net income attributable to common stockholders’ per share—diluted	$	0.01		$	(0.28	)	0.03			(0.07		)
Weighted average shares of common stock outstanding—basic	95,145,496			88,894,258			92,168,432			82,906,087
Weighted average shares of common stock outstanding—diluted	95,995,496			88,894,258			93,000,432			82,906,087
Dividends declared per share of common stock	$	0.200		$	0.125		$	0.400		$	0.250

Hudson Pacific Properties, Inc.

Second Quarter 2016 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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015

Net income (loss)	$	4,035		$	5,976		$	(2,745	)	$	(1,828	)	$	(36,083	)
Adjustments:
Depreciation and amortization of real estate assets	65,655			67,905			73,876			79,940			73,293
(Gain) loss from sale of real estate	(2,163		)	(6,352		)	—			(8,371		)	591
FFO attributable to non-controlling interests	(4,510		)	(4,162		)	(3,696		)	(3,494		)	(3,696		)
Net income attributable to preferred stock and units	(159		)	(159		)	(2,520		)	(3,195		)	(3,195		)
FFO to common stockholders and unitholders	62,858			63,208			64,915			63,052			30,910
Specified items impacting FFO:
Acquisition-related (expense reimbursements) expenses	61			—			(106		)	(83		)	37,481
FFO (excluding specified items) to common stockholders and unitholders	$	62,919		$	63,208		$	64,809		$	62,969		$	68,391

Weighted average common stock/units outstanding—diluted	146,399			145,894			145,946			145,902			145,849
FFO per common stock/unit—diluted	$	0.43		$	0.43		$	0.44		$	0.43		$	0.21
FFO (excluding specified items) per common stock/unit—diluted	$	0.43		$	0.43		$	0.44		$	0.43		$	0.47

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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015

Net income (loss)	$	10,011		$	5,976		$	(16,082	)	$	(13,337	)	$	(11,509	)
Adjustments:
Depreciation and amortization of real estate assets	133,560			67,905			244,182			170,306			90,366
Gain from sale of real estate	(8,515		)	(6,352		)	(30,471		)	(30,471		)	(22,100		)
FFO attributable to non-controlling interest	(8,672		)	(4,162		)	(14,216		)	(10,520		)	(7,008		)
Net income attributable to preferred stock and units	(318		)	(159		)	(12,105		)	(9,585		)	(6,390		)
FFO to common stockholders and unitholders	126,066			63,208			171,308			106,393			43,359
Specified items impacting FFO:
Acquisition-related expenses	61			—			43,336			43,442			43,525
FFO (excluding specified items) to common stockholders and unitholders	$	126,127		$	63,208		$	214,644		$	149,835		$	86,884

Weighted average common stock/units outstanding—diluted	146,350			145,894			129,590			124,052			113,162
FFO per common stock/unit—diluted	$	0.86		$	0.43		$	1.32		$	0.86		$	0.38
FFO (excluding specified items) per common stock/unit—diluted	$	0.86		$	0.43		$	1.66		$	1.21		$	0.77

______________________________


(1)	See page 34 for Management’s Statements on FFO and AFFO.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015

FFO	$	62,858		$	63,208		$	64,915		$	63,052		$	30,910
Adjustments:
Straight-line rents, net	(4,979		)	(4,790		)	(5,053		)	(8,903		)	(10,931		)
Amortization of above-market and below-market leases, net	(4,298		)	(4,697		)	(6,158		)	(3,750		)	(10,258		)
Amortization of above-market and below-market ground leases, net	535			535			958			515			515
Amortization of lease incentive costs	268			269			94			89			89
Amortization of deferred financing costs and loan premium, net	1,558			1,015			2,546			1,154			1,551
Unrealized loss on ineffective portion of derivative instrument	384			2,125			—			—			—
Recurring capital expenditures, tenant improvements and lease commissions	(24,099		)	(20,217		)	(5,727		)	(8,598		)	(13,301		)
Non-cash compensation expense	3,301			3,342			2,235			2,034			2,003
AFFO	$	35,528		$	40,790		$	53,810		$	45,593		$	578

Dividends paid to common stock and unitholders	$	29,317		$	29,802		$	29,138		$	18,226		$	18,224
AFFO payout ratio	82.5		%	73.1		%	54.1		%	40.0		%	3,152.9		%

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, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015

FFO	$	126,066		$	63,208		$	171,308		$	106,393		$	43,359
Adjustments:
Straight-line rents, net	(9,769		)	(4,790		)	(27,925		)	(22,872		)	(13,969		)
Amortization of above-market and below-market leases, net	(8,995		)	(4,697		)	(21,457		)	(15,299		)	(11,549		)
Amortization of above-market and below-market ground leases, net	1,070			535			2,050			1,092			577
Amortization of lease incentive costs	537			269			358			264			175
Amortization of deferred financing costs and loan premium, net	2,573			1,015			5,903			3,357			2,203
Unrealized loss on ineffective portion of derivative instrument	2,509			2,125			—			—			—
Recurring capital expenditures, tenant improvements and lease commissions	(44,316		)	(20,217		)	(33,817		)	(28,090		)	(19,492		)
Non-cash compensation expense	6,643			3,342			8,421			6,186			4,152
AFFO	$	76,318		$	40,790		$	104,841		$	51,031		$	5,456

Dividends paid to common stock and unitholders	$	59,119		$	29,802		$	75,875		$	46,737		$	28,511
AFFO payout ratio	77.5		%	73.1		%	72.4		%	91.6		%	522.6		%

_____________________________


(1)	See page 34 for Management’s Statements on FFO and AFFO.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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, 2016 and December 31, 2015, excluding net deferred financing costs related to our unsecured revolving credit facility and undrawn term loans.



	June 30, 2016					December 31, 2015
	Principal Amount		Deferred Financing Costs, net			Principal Amount		Unamortized Loan Premium and Deferred Financing Costs, net				Interest Rate⁽¹⁾	Contractual Maturity Date		Annual Debt Service ⁽²⁾		Balance at Maturity
Unsecured Loans
Unsecured Revolving Credit Facility⁽³⁾	$	250,000	$	—		$	230,000	$	—			LIBOR+ 1.15% to 1.85%	4/1/2019	⁽⁴⁾	$	—	$	250,000
5-Year Term Loan due April 2020⁽³⁾⁽⁵⁾	450,000		(4,021		)	550,000		(5,571		)		LIBOR+ 1.30% to 2.20%	4/1/2020		—		450,000
5-Year Term Loan due November 2020⁽³⁾	175,000		(840		)	—		—				LIBOR +1.30% to 2.20%	11/17/2020		—		175,000
7-Year Term Loan due April 2022⁽³⁾⁽⁶⁾	350,000		(2,443		)	350,000		(2,656		)		LIBOR+ 1.60% to 2.55%	4/1/2022		11,235		350,000
7-Year Term Loan due November 2022⁽³⁾⁽⁷⁾	125,000		(1,010		)	—		—				LIBOR + 1.60% to 2.55%	11/17/2022		3,788		125,000
Series A Notes	110,000		(1,009		)	110,000		(1,011		)		4.34%	1/2/2023		4,774		110,000
Series B Notes	259,000		(2,398		)	259,000		(2,378		)		4.69%	12/16/2025		12,147		259,000
Series C Notes	56,000		(564		)	56,000		(509		)		4.79%	12/16/2027		2,682		56,000
Total Unsecured Loans⁽⁸⁾	1,775,000		(12,285		)	1,555,000		(12,125		)					34,626		1,775,000

Mortgage Loans
Mortgage loan secured by Pinnacle II	87,000		(759		)	86,228		1,310			⁽⁹⁾	4.30%	6/11/2026		3,741		87,000
Mortgage loan secured by 901 Market	—		—			30,000		(119		)		N/A	N/A		—		N/A
Mortgage loan secured by Rincon Center⁽¹⁰⁾	101,357		(276		)	102,309		(355		)		5.13%	5/1/2018		7,195		97,854
Mortgage loan secured by Sunset Gower/Sunset Bronson⁽¹¹⁾	5,001		(1,889		)	115,001		(2,232		)		LIBOR+2.25%	3/4/2019	⁽⁴⁾	—		5,001
Mortgage loan secured by Met Park North⁽¹²⁾	64,500		(453		)	64,500		(509		)		LIBOR+1.55%	8/1/2020		2,393		64,500
Mortgage loan secured by 10950 Washington⁽¹⁰⁾	28,171		(387		)	28,407		(421		)		5.32%	3/11/2022		2,003		24,981
Mortgage loan secured by Pinnacle I⁽¹³⁾	129,000		(644		)	129,000		(694		)		3.95%	11/7/2022		5,179		117,190
Mortgage loan secured by Element L.A.	168,000		(2,454		)	168,000		(2,584		)		4.59%	11/6/2025		7,716		168,000
Total mortgage loans	583,029		(6,862		)	723,445		(5,604		)					28,227		564,526
Total	$	2,358,029	$	(19,147	)	$	2,278,445	$	(17,729	)					$	62,853	$	2,339,526

Hudson Pacific Properties, Inc. pro-rata total loans⁽¹⁴⁾	$	2,282,429	$	(18,655	)	$	2,203,115	$	(17,945	)					$	59,731	$	2,268,060

_________________


(1)	Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of June 30, 2016, which may be different than the interest rates as of December 31, 2015 for corresponding indebtedness.

(2)

Annual debt service includes principal payments based on amortization schedule and annual interest payments of fixed rate loans and variable rate loans with effective fixed rate as a result of interest rate contracts on the full principal balance. In instances where interest is paid based on a LIBOR margin, we used the current margin based on the leverage ratio as of June 30, 2016. Amount doesn't include interest payment of variable rate loans that are partially effectively fixed through interest rate contracts.


(3)	The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of June 30, 2016, no such election has been made.


(4)	The maturity date may be extended once for an additional one-year term.


(5)	Effective May 1, 2015, $300.0 million of the term loan has been effectively fixed at 2.66% to 3.56% per annum through the use of an interest rate swap. The Company redesignated this interest rate swap effective July 1, 2016, therefore, the interest rate with respect to $300.0 million of the term loan is effectively fixed at 2.75% to 3.65% per annum.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data


(6)	Effective May 1, 2015, the outstanding balance of the term loan has been effectively fixed at 3.21% to 4.16% per annum through the use of an interest rate swap. The Company redesignated this interest rate swap effective July 1, 2016, therefore, the interest rate is effectively fixed at 3.36% to 4.31% per annum.


(7)	Effective June 1, 2016, the outstanding balance of the term loan has been effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap.


(8)	Total unsecured loans does not include the balance related to the private placement agreements entered on July 6, 2016 for $150.0 million of 3.98% senior guaranteed notes due July 6, 2026, and an additional $50.0 million of 3.66% senior guaranteed notes due September 15, 2023. The $150.0 million was drawn on July 6, 2016. The $50.0 million has not yet been drawn.


(9)	Represents unamortized premium amount of the non-cash mark-to-market adjustment.


(10)	Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.


(11)	Through February 11, 2016, interest on $92.0 million of the outstanding loan balance was effectively capped at 5.97% and 4.25% on $50.0 million and $42.0 million, respectively, of the loan through the use of two interest rate caps. These interest rate caps were not renewed after maturity.


(12)	This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap.


(13)	This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.


(14)	Represents total debt balance excluding a pro-rata share of debt allocable to the minority interest in the Pinnacle I & II joint venture.

PORTFOLIO DATA

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾

Location	Submarket	Square Feet⁽²⁾	Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
SAME-STORE⁽⁵⁾
Greater Seattle, Washington
Northview⁽⁶⁾	Lynnwood	182,009	84.4	%	84.4	%	$	3,273,551	$	21.30
Met Park North⁽⁶⁾	Lake Union	190,748	95.7		95.7		5,054,041		27.68
Merrill Place⁽⁶⁾	Pioneer Square	163,768	83.1		86.6		3,730,178		27.42
505 First Avenue⁽⁶⁾	Pioneer Square	288,140	96.9		97.4		6,042,263		21.63
83 King Street⁽⁶⁾	Pioneer Square	184,083	90.0		90.0		4,579,854		27.66
Subtotal		1,008,748	90.9	%	91.6	%	$	22,679,887	$	24.73
San Francisco Bay Area, California
1455 Market Street⁽⁶⁾	San Francisco	1,025,833	99.2	%	99.7	%	$	34,123,971	$	33.52
222 Kearny Street⁽⁶⁾	San Francisco	148,797	85.8		92.2		6,486,381		50.82
275 Brannan Street⁽⁶⁾	San Francisco	54,673	100.0		100.0		3,166,361		57.91
625 Second Street⁽⁶⁾	San Francisco	138,080	73.8		73.8		5,202,680		51.03
875 Howard Street⁽⁶⁾	San Francisco	230,443	99.4		99.4		5,729,942		25.01
Rincon Center⁽⁶⁾	San Francisco	580,850	86.0		91.8		21,616,276		43.29
Towers at Shore Center	Redwood Shores	334,483	90.5		93.7		26,531,449		87.65
3400 Hillview	Palo Alto	207,857	100.0		100.0		12,946,581		62.29
Clocktower Square	Palo Alto	100,344	96.9		96.9		6,526,693		67.14
Foothill Research	Palo Alto	195,376	100.0		100.0		12,495,934		63.96
Campus Center	Silicon Valley	471,580	100.0		100.0		15,279,192		32.40
1740 Technology	North San Jose	206,876	99.1		99.1		7,036,176		34.31
Concourse	North San Jose	944,386	96.5		97.7		27,388,425		30.05
Skyport Plaza	North San Jose	418,086	96.0		96.4		13,022,823		32.45
Subtotal		5,057,664	95.4	%	96.8	%	$	197,552,884	$	40.96
Los Angeles, California
Pinnacle I⁽⁶⁾	Burbank	393,777	94.2	%	97.5	%	$	15,385,035	$	41.46
Pinnacle II⁽⁶⁾	Burbank	230,000	100.0		100.0		9,099,401		39.56
6922 Hollywood⁽⁶⁾	Hollywood	205,523	86.1		86.1		7,887,865		44.59
Technicolor Building⁽⁶⁾	Hollywood	114,958	100.0		100.0		4,873,345		42.39
3401 Exposition⁽⁶⁾	West Los Angeles	63,376	100.0		100.0		2,624,147		41.41
10900 Washington⁽⁶⁾	West Los Angeles	9,919	100.0		100.0		391,602		39.48
10950 Washington⁽⁶⁾	West Los Angeles	159,024	80.9		100.0		5,029,239		39.07
604 Arizona⁽⁶⁾	West Los Angeles	44,260	100.0		100.0		1,944,237		43.93
9300 Wilshire⁽⁶⁾	West Los Angeles	61,224	85.1		85.1		2,369,525		45.48
Element LA	West Los Angeles	284,037	100.0		100.0		15,409,645		54.25
Del Amo Office Building⁽⁶⁾	Torrance	113,000	100.0		100.0		3,327,208		29.44
Subtotal		1,679,098	94.6	%	97.2	%	$	68,341,249	$	43.03
Total Same-store		7,745,510	94.6	%	96.2	%	$	288,574,020	$	39.38

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾

NON-SAME-STORE
San Francisco Bay Area, California
901 Market Street	San Francisco	206,218	100.0	%	100.0	%	$	9,680,695	$	46.94
Skyway Landing	Redwood Shores	247,173	92.7		96.2		9,654,811		42.15
Lockheed	Palo Alto	42,899	100.0		100.0		2,923,996		68.16
2180 Sand Hill Road	Palo Alto	45,613	97.2		97.2		4,015,896		90.61
Embarcadero Place	Palo Alto	197,402	98.8		98.8		7,980,002		40.90
Page Mill Center	Palo Alto	176,245	99.9		99.9		11,703,718		66.45
Total Non-same-store		915,550	97.6	%	98.6	%	$	45,959,118	$	51.42
Total Stabilized		8,661,060	94.9	%	96.5	%	$	334,533,138	$	40.69
LEASE-UP
San Francisco Bay Area, California
Peninsula Office Park	San Mateo	510,789	77.3	%	78.0	%	$	16,866,569	$	42.72
Metro Center	Foster City	730,215	57.5		66.0		18,869,892		44.96
333 Twin Dolphin Plaza	Redwood Shores	182,789	73.3		73.3		6,808,003		50.80
555 Twin Dolphin Plaza	Redwood Shores	198,936	90.5		90.5		8,366,850		46.45
Shorebreeze	Redwood Shores	230,932	68.7		71.1		7,595,242		47.88
Palo Alto Square	Palo Alto	328,251	87.7		95.6		21,398,586		74.34
Techmart Commerce	Silicon Valley	284,440	74.1		76.9		8,106,832		38.47
Gateway	North San Jose	609,093	81.6		81.6		14,446,825		29.07
Metro Plaza	North San Jose	456,921	78.9		80.3		11,321,239		31.39
Total Lease-up		3,532,366	74.8	%	78.0	%	$	113,780,038	$	43.04

TOTAL IN-SERVICE		12,193,426	89.1	%	91.1	%	$	448,313,176	$	41.26

___________________________

(1)

Our in-service portfolio excludes the redevelopment, development, properties held-for-sale and land properties described on pages 17 and 18. As of June 30, 2016, we had two office development properties under construction, five office redevelopment properties under construction, one property held-for-sale and eight land properties (see pages 17 and 18). 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, 2016, 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, 2016, 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, 2016. Annualized base rent does not reflect tenant reimbursements.


(5)	Defined as all of the properties owned and included in our stabilized portfolio as of April 1, 2015 and still owned and included in the stabilized portfolio as of June 30, 2016.


(6)	These properties are included in same-store for the six months ended June 30, 2016 and are defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2015 and still owned and included in the stabilized portfolio as of June 30, 2016.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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
Lynnwood	1	182,009	153,692	84.4	%	153,692	84.4	%	$	3,273,551	$	21.30
Lake Union	1	190,748	182,590	95.7		182,590	95.7		5,054,041		27.68
Pioneer Square	3	635,991	580,918	91.3		588,142	92.5		14,352,296		24.71
Subtotal	5	1,008,748	917,200	90.9	%	924,424	91.6	%	$	22,679,887	$	24.73

San Francisco Bay Area, California
San Francisco	7	2,384,894	2,236,889	93.8	%	2,285,549	95.8	%	$	86,006,307	$	38.45
Redwood Shores	2	581,656	531,757	91.4		551,137	94.8		36,186,260		68.05
Palo Alto	7	965,736	958,898	99.3		958,898	99.3		58,592,820		61.10
Silicon Valley	1	471,580	471,580	100.0		471,580	100.0		15,279,192		32.40
North San Jose	3	1,569,348	1,517,734	96.7		1,530,714	97.5		47,447,424		31.26
Subtotal	20	5,973,214	5,716,858	95.7	%	5,797,878	97.1	%	$	243,512,003	$	42.60

Los Angeles, California
Burbank	2	623,777	601,078	96.4	%	613,881	98.4	%	$	24,484,436	$	40.73
Hollywood	2	320,481	291,840	91.1		291,840	91.1		12,761,211		43.73
West Los Angeles	6	621,840	582,420	93.7		612,720	98.5		27,768,395		47.68
Torrance	1	113,000	113,000	100.0		113,000	100.0		3,327,208		29.44
Subtotal	11	1,679,098	1,588,338	94.6	%	1,631,441	97.2	%	$	68,341,249	$	43.03

Total Stabilized	36	8,661,060	8,222,396	94.9	%	8,353,743	96.5	%	$	334,533,140	$	40.69

LEASE-UP

San Francisco Bay Area, California
San Mateo	1	510,789	394,850	77.3	%	398,289	78.0	%	$	16,866,569	$	42.72
Foster City	1	730,215	419,725	57.5		481,717	66.0		18,869,892		44.96
Redwood Shores	3	612,657	472,788	77.2		478,284	78.1		22,770,095		48.16
Palo Alto	1	328,251	287,844	87.7		313,924	95.6		21,398,586		74.34
Silicon Valley	1	284,440	210,735	74.1		218,691	76.9		8,106,832		38.47
North San Jose	2	1,066,014	857,640	80.5		863,635	81.0		25,768,064		30.05

Total Lease-up	9	3,532,366	2,643,582	74.8	%	2,754,540	78.0	%	$	113,780,038	$	43.04

TOTAL IN-SERVICE	45	12,193,426	10,865,978	89.1	%	11,108,283	91.1	%	$	448,313,178	$	41.26

___________________________

Refer to footnotes on page 15.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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
Greater Seattle, Washington
Merrill Place Theater Building	Pioneer Square	29,385	—	—	%	—	—	%	$	—	$	—
Subtotal		29,385	—	—	%	—	—	%	$	—	$	—
San Francisco Bay Area, California
875 Howard (1st Floor)	San Francisco	55,827	—	—		—	—		—		—
Subtotal		55,827	—	—	%	—	—	%	$	—	$	—
Los Angeles, California
3402 Pico (Existing Office)	West Los Angeles	50,687	—	—		—	—		—		—
4th & Traction	Downtown Los Angeles	120,937	—	—		—	—		—		—
405 Mateo	Downtown Los Angeles	83,285	—	—		—	—		—		—
Subtotal		254,909	—	—	%	—	—	%	$	—	$	—
Total Redevelopment		340,121	—	—	%	—	—	%	$	—	$	—
DEVELOPMENT
Greater Seattle, Washington
Merrill Place—450 Alaskan Way	Pioneer Square	166,800	—	—	%	91,357	54.8	%	—		$	—
Subtotal		166,800	—	—	%	91,357	54.8	%	$	—	$	—
Los Angeles, California
Icon—Building I Tower	Hollywood	323,273	—	—	%	323,273	100.0	%	$	—	$	—
Icon—Building II	Hollywood	90,000	—	—		—	—		—		—
Total Icon		413,273	—	—	%	323,273	78.2	%	$	—	$	—
Total Development		580,073	—	—	%	414,630	71.5	%	$	—	$	—

HELD FOR SALE
12655 Jefferson	West Los Angeles	100,756	17,867	17.7	%	100,756	100.0	%	$	943,378	$	52.80
Total Held For Sale		100,756	17,867	17.7	%	100,756	100.0	%	$	943,378	$	52.80
TOTAL		1,020,950	17,867	1.8	%	515,386	50.5	%	$	943,378	$	52.80

______________________________


(1)	Excludes in-service properties and land assets (see pages 14, 15 and 18).


(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, 2016, 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, 2016, 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, 2016. Annualized base rent does not reflect tenant reimbursements.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

LAND PROPERTIES SUMMARY



Location	Submarket	Square Feet⁽¹⁾	Percent of Total
San Francisco Bay Area, California
Skyport Plaza	North San Jose	350,000	13.2	%
Campus Center	Silicon Valley	946,350	35.9
Subtotal		1,296,350	49.1	%

Los Angeles, California
Epic (Sunset Bronson—Lot A)	Hollywood	300,000	11.4	%
Sunset Bronson—Lot D⁽²⁾	Hollywood	19,816	0.8
Sunset Gower— Redevelopment	Hollywood	423,396	16.0
Element LA	West Los Angeles	500,000	18.9
3402 Pico (Future Office)	West Los Angeles	99,313	3.8
3402 Pico (Residential)⁽³⁾	West Los Angeles	TBD	—
Subtotal		1,342,525	50.9	%

TOTAL		2,638,875	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.


(2)	Square footage for Sunset Bronson Lot D represents management’s estimate of developable square feet for 33 residential units.


(3)	Management estimates that 3402 Pico (Residential) could be improved with up to 4 residential units.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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	571,626	65.0	%	85.2	%	$	15,546,980	$	31.92
Sunset Bronson	308,026	35.0		85.6		8,239,717		31.25

TOTAL	879,652	100.0	%	85.3	%	$	23,786,697	$	31.68

______________________________

(1)

Prior to the three-month period ended December 31, 2015, occupancy trends for the media and entertainment portfolio were calculated using the gross square footage as determined in connection with the acquisitions of the Sunset Gower Studios and Sunset Bronson Studios properties in 2007 and 2008, respectively. However, since these acquisitions, certain space has been either reconfigured to improve its use or characterized as structural vacancy. During the fourth quarter of 2015, we reexamined the history of space utilization at both media and entertainment properties, adjusting the segment’s occupancy trends to reflect the utilization of certain production support space and building management uses as occupancy and to eliminate structurally vacant space (i.e. electrical plant, utility areas and covered pathways) from the available square footage. The revised methodology is more in keeping with that used to calculate occupancy in the office portfolio and, for consistency, has been used to recalculate historic occupancy for the media and entertainment portfolio. For the 12 months ended June 30, 2016, the average leased percentage for the media and entertainment properties increased to 85.3% from 76.5% for the same period a year ago. By way of comparison, under the prior methodology, the reported average percent leased for the 12 months ended June 30, 2015 was 71.6%.


(2)	Percent leased for media and entertainment properties is the average percent leased for the 12 months ended June 30, 2016.


(3)	Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended June 30, 2016, 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, 2016.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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 6/30/16

Total Estimated Project Costs

Estimated Initial Stabilized Yield on Project Costs⁽⁴⁾

UNDER CONSTRUCTION

Greater Seattle, Washington

Merrill Place (450 Alaskan Way)

Seattle

Q1-2016

Q4-2017

Q1-2018

166,800

54.8%

13,051

⁽⁵⁾

92,703

⁽⁵⁾

6.7%

Los Angeles, California

Icon—Building I Tower⁽⁶⁾

Hollywood

Q4-2014

Q4-2016

Q3-2018

323,273

100.0%

N/A

Icon—Building II

Hollywood

Q1-2016

Q3-2017

Q3-2018

90,000

—%

N/A

Total Icon

413,273

78.2%

⁽⁷

⁾

98,490

200,922

8.8%

12655 Jefferson

Playa Del Rey

Q2-2015

Q3-2016

100,756

100.0%

48,327

60,950

7.2%

3402 Pico (Existing Office)

Santa Monica

Q3-2015

Q3-2016

TBD

50,687

—%

18,223

⁽⁸⁾

24,251

⁽⁸⁾

9.2%

4th & Traction

Los Angeles

Q4-2015

Q2-2017

Q2-2018

120,937

—%

57,496

⁽⁹⁾

94,839

⁽⁹⁾

6.4%

Total Under Construction

852,453

235,587

473,665

FUTURE DEVELOPMENT PIPELINE

Greater Seattle, Washington

Merrill Place Theater Building

Seattle

TBD

29,385

N/A

TBD

San Francisco Bay Area, California

Skyport Plaza

North San Jose

TBD

350,000

N/A

10,856

⁽¹⁰⁾

TBD

Campus Center

Milpitas

TBD

946,350

N/A

7,371

⁽¹¹⁾

TBD

Los Angeles, California

Sunset Bronson—Lot D

Hollywood

TBD

19,816

N/A

TBD

Epic (Sunset Bronson—Lot A)

Hollywood

TBD

300,000

N/A

2,590

⁽¹²⁾

TBD

Sunset Gower—Redevelopment

Hollywood

TBD

423,396

N/A

TBD

Element LA

Los Angeles

TBD

500,000

N/A

TBD

3402 Pico (Future Office)⁽¹³⁾

Santa Monica

TBD

99,313

N/A

TBD

3402 (Residential)

Santa Monica

TBD

N/A

TBD

Total 3402 Pico Future Development

99,313

N/A

5,966

⁽¹⁴⁾

TBD

405 Mateo

Los Angeles

TBD

83,285

N/A

40,858

⁽¹⁵⁾

TBD

Total Future Development Pipeline

2,751,545

__________________________


(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.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

(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. We caution you not to place undue reliance on the estimated initial stabilized yields because they are based solely on our estimates, using data available to us throughout the development process. The amount of total investment required to reach stabilized occupancy may differ substantially from our estimates due to various factors. We can provide no assurance that the actual initial stabilized yields will be consistent with the estimated initial stabilized yields set forth herein.


(5)	Project Costs as of June 30, 2016 and Total Estimated Project Costs for Merrill Place (450 Alaskan Way) include $7.0 million for management’s estimate of allocated land and acquisition costs.

(6)

The Icon development consists of a 14-story office tower (Icon—Building 1 Tower), a five-story mid-rise office building (Icon—Building II), and 1,635-stall parking structure. The parking structure was completed within the fourth quarter of 2015. The estimated completion and stabilization dates for each of the buildings is reflected in the table above. 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 exclude land.


(7)	Netflix, Inc. is anticipated to commence 273,749 square feet on January 1, 2017. The lease will commence six months after the delivery date of July 1, 2016. Netflix is anticipated to occupy an additional 49,524 square feet on July 1, 2018.

(8)

Project Costs as of June 30, 2016 and Total Estimated Project Costs for 3402 Pico (Existing Office) include approximately $12.634 million for management’s estimate of allocated land (including existing 50,687-square-foot building) and acquisition costs. Not included in the cost for 3402 Pico (Existing Office) is $5.966 million for management’s estimate of allocated land value for 3402 Pico Future Development.


(9)	Project Costs as of June 30, 2016 and Total Estimated Project Costs for 4th & Traction include approximately $49.402 million of initial acquisition cost for existing 120,937-square-foot building.


(10)	Project Costs as of June 30, 2016 for Skyport Plaza include approximately $10.5 million for management’s estimate of allocated land and acquisition costs.


(11)	Project Costs as of June 30, 2016 for Campus Center include approximately $7.0 million for management’s estimate of allocated land and acquisition costs.


(12)	Project Costs as of June 30, 2016 for Epic (Sunset Bronson—Lot A) excludes land.


(13)	Estimated rentable square feet for 3402 Pico (Future Office) does not include a 50,687-square-foot existing vacant building.


(14)	Project Costs as of June 30, 2016 for 3402 Pico Future Development include approximately $5.966 million for management’s estimate of allocated land value.


(15)	Project Costs as of June 30, 2016 for 405 Mateo include approximately $40.0 million of initial acquisition costs for the existing 83,285-square-foot building.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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,
	2016			2015			% change		2016		2015		% change
Same-store office statistics⁽²⁾
Number of properties	30			30					21		21
Rentable square feet	7,745,510			7,745,510					4,582,485		4,582,485
Ending % leased	96.2		%	95.6		%	0.6	%	95.0	%	94.2	%	0.8	%
Ending % occupied	94.6		%	95.0		%	(0.4	)%	92.8	%	93.4	%	(0.6	)%
Average % occupied for the period	93.9		%	95.3		%	(1.5	)%	91.0	%	91.9	%	(1.0	)%

Same-store media statistics⁽³⁾
Number of properties	2			2					2		2
Rentable square feet	879,652			879,652					879,652		879,652
Average % occupied for the period	85.3		%	76.5		%	11.5	%	85.3	%	76.5	%	11.5	%

SAME-STORE ANALYSIS—GAAP BASIS

	Three Months Ended June 30,								Six Months Ended June 30,
	2016			2015			% change		2016		2015		% change
Same-store net operating income—GAAP basis
Total office revenues	$	92,005		$	86,018		7.0	%	102,256		95,726		6.8	%
Total media revenues	9,921			8,261			20.1		21,166		18,150		16.6
Total revenues	$	101,926		$	94,279		8.1	%	123,422		113,876		8.4	%

Total office expense	$	29,890		$	27,750		7.7	%	35,882		33,810		6.1	%
Total media expense	6,295			5,069			24.2		12,247		11,074		10.6
Total property expense	$	36,185		$	32,819		10.3	%	48,129		44,884		7.2	%

Same-store office net operating income—GAAP basis	$	62,115		$	58,268		6.6	%	66,374		61,916		7.2	%
NOI Margin	67.5		%	67.7		%	(0.3	)%	64.9	%	64.7	%	0.3	%
Same-store media net operating income—GAAP basis	$	3,626		$	3,192		13.6	%	8,919		7,076		26.0	%
NOI Margin	36.5		%	38.6		%	(5.4	)%	42.1	%	39.0	%	7.9	%
Same-store total property net operating income—GAAP basis	$	65,741		$	61,460		7.0	%	75,293		68,992		9.1	%
NOI Margin	64.5		%	65.2		%	(1.1	)%	61.0	%	60.6	%	0.7	%

Hudson Pacific Properties, Inc.

Second Quarter 2016 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,
	2016			2015			% change		2016			2015			% change
Same-store net operating income—Cash basis
Total office revenues	$	89,494		$	79,286		12.9	%	$	95,791		$	90,410		6.0	%
Total media revenues	9,788			7,836			24.9		20,845			17,291			20.6
Total revenues	$	99,282		$	87,122		14.0	%	$	116,636		$	107,701		8.3	%

Total office expense	$	29,401		$	27,263		7.8	%	$	35,758		$	33,686		6.2	%
Total media expense	6,295			5,069			24.2		12,247			11,074			10.6
Total property expense	$	35,696		$	32,332		10.3	%	$	48,005		$	44,760		7.2	%

Same-store office net operating income—Cash basis	$	60,093		$	52,023		15.5	%	$	60,033		$	56,724		5.8	%
NOI Margin	67.1		%	65.6		%	2.3	%	62.7		%	62.7		%	—	%
Same-store media net operating income—Cash basis	$	3,493		$	2,767		26.2	%	$	8,598		$	6,217		38.3	%
NOI Margin	35.7		%	35.3		%	1.1	%	41.2		%	36.0		%	14.4	%
Same-store total property net operating income—Cash basis	$	63,586		$	54,790		16.1	%	$	68,631		$	62,941		9.0	%
NOI Margin	64.0		%	62.9		%	1.7	%	58.8		%	58.4		%	0.7	%

______________________________

(1)

Same-store for the three months ended June 30, 2016 is defined as all of the properties owned and included in our stabilized portfolio as of April 1, 2015 and still owned and included in the stabilized portfolio as of June 30, 2016. Same-store for the six months ended June 30, 2016 is defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2015 and still owned and included in the stabilized portfolio as of June 30, 2016


(2)	See page 14 for same-store office properties.


(3)	See page 19 for same-store media properties.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

RECONCILIATION OF SAME-STORE PROPERTY NET OPERATING INCOME TO GAAP NET INCOME

(Unaudited, in thousands)



	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Reconciliation to net income
Same-store office revenues—Cash basis	$	89,494		$	79,286		$	95,791		$	90,410
GAAP adjustments to office revenues—Cash basis	2,511			6,732			6,465			5,316
Same-store office revenues—GAAP basis	$	92,005		$	86,018		$	102,256		$	95,726

Same-store media revenues—Cash basis	$	9,788		$	7,836		$	20,845		$	17,291
GAAP adjustments to media revenues—Cash basis	133			425			321			859
Same-store media revenues—GAAP basis	$	9,921		$	8,261		$	21,166		$	18,150

Same-store property revenues—GAAP basis	$	101,926		$	94,279		$	123,422		$	113,876

Same-store office expenses—Cash basis	$	29,401		$	27,263		$	35,758		$	33,686
GAAP adjustments to office expenses—Cash basis	489			487			124			124
Same-store office expenses—GAAP basis	$	29,890		$	27,750		$	35,882		$	33,810

Same-store media expenses—Cash basis	$	6,295		$	5,069		$	12,247		$	11,074
Same-store media expenses—GAAP basis	$	6,295		$	5,069		$	12,247		$	11,074

Same-store property expenses—GAAP basis	$	36,185		$	32,819		$	48,129		$	44,884

Same-store net operating income—GAAP basis	$	65,741		$	61,460		$	75,293		$	68,992
Non-same-store GAAP net operating income	33,194			38,599			123,524			70,751
General and administrative	(13,016		)	(10,373		)	(25,519		)	(19,573		)
Depreciation and amortization	(66,108		)	(73,592		)	(134,476		)	(90,750		)
Income from operations	$	19,811		$	16,094		$	38,822		$	29,420
Interest expense	(17,614		)	(14,113		)	(34,865		)	(19,606		)
Interest income	73			48			86			101
Unrealized loss on ineffective portion of derivative instruments	(384		)	—			(2,509		)	—
Acquisition-related expenses	(61		)	(37,481		)	(61		)	(43,525		)
Other income (expense)	47			(40		)	23			1
Gains (loss) on sale of real estate	2,163			(591		)	8,515			22,100
Net income	$	4,035		$	(36,083	)	$	10,011		$	(11,509	)

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

NET OPERATING INCOME DETAIL Three Months Ended June 30, 2016 (Unaudited, in thousands)

	Same-store Office Properties⁽¹⁾			Non-same-store Office Properties⁽³⁾			Development/Redevelopment⁽³⁾			Lease-Up Properties⁽⁴⁾			Held-for-Sale⁽³⁾			Media & Entertainment⁽⁵⁾			Total Properties
Revenue
Rents
Cash	$	70,003		$	10,043		$	—		$	27,589		$	81		$	6,724		$	114,440
GAAP Revenue	2,511			2,171			—			4,869			3			133			9,687
Total Rents	$	72,514		$	12,214		$	—		$	32,458		$	84		$	6,857		$	124,127

Tenant Reimbursements	$	15,354		$	2,658		$	—		$	3,235		$	—		$	213		$	21,460
Parking and Other	4,137			22			23			71			3			2,851			7,107
Total Revenue	$	92,005		$	14,894		$	23		$	35,764		$	87		$	9,921		$	152,694

Property operating expenses	29,890			4,257			18			14,635			12			6,295			55,107
Property GAAP Net Operating Income	$	62,115		$	10,637		$	5		$	21,129		$	75		$	3,626		$	97,587

Square Feet	7,745,510			915,550			920,194			3,532,366			100,756			879,652			14,094,028
Ending % Leased	96.2		%	98.6		%	45.1		%	78.0		%	100.0		%	85.3		%	87.8		%
Ending % Occupied	94.6		%	97.6		%	—		%	74.8		%	17.7		%	85.3		%	82.5		%
NOI Margin	67.5		%	71.4		%	21.7		%	59.1		%	86.2		%	36.5		%	63.9		%
Property GAAP Net Operating Income	$	62,115		$	10,637		$	5		$	21,129		$	75		$	3,626		$	97,587
Less : GAAP Revenue	(2,511		)	(2,171		)	—			(4,869		)	(3		)	(133		)	(9,687		)
Add : GAAP Expense	489			29			—			17			—			—			535
Property Cash Net Operating Income	$	60,093		$	8,495		$	5		$	16,277		$	72		$	3,493		$	88,435

Net Income Reconciliation	Q2-2016
Property GAAP Net Operating Income	$	97,587
Broadway Note	539
Disposed Asset	245
Other Income/Inter-Company Eliminations	564
Total GAAP Net Operating Income	$	98,935
General and administrative	(13,016		)
Depreciation and amortization	(66,108		)	(1) See page 14 for same-store office properties for the three months ended June 30, 2016.
Income from operations	$	19,811		(2) See page 15 for non-same-store properties.
Interest expense	(17,614		)	(3) See page 17 for redevelopment, development and held-for-sale properties.
Interest income	73			(4) See page 15 for lease-up properties.
Unrealized loss on ineffective portion of derivative instrument	(384		)	(5) See page 19 for same-store media properties.
Acquisition-related expenses	(61		)
Other income	47
Gain on sale of real estate	2,163
Net Income	$	4,035

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

OFFICE PORTFOLIO LEASING ACTIVITY



	Three Months Ended June 30, 2016			Six Months Ended June 30, 2016
Total Gross Leasing Activity
Rentable square feet	970,770			1,786,801
Gross New Leasing Activity
Rentable square feet	237,510			836,713
New cash rate	$	49.45		$	51.66
Gross Renewal Leasing Activity
Rentable square feet	733,260			950,088
Renewal cash rate	$	40.34		$	42.22
Total Leases Expired and Terminated
Contractual (scheduled) expiration (square feet)	138,115			372,857
Early termination (square feet)	44,370			125,940
Total	182,485			498,797
Net Absorption
Leased rentable square feet	55,025			337,916
Cash Rent Growth⁽¹⁾
Expiring rate	$	28.40		$	29.21
New/renewal rate	$	42.29		$	45.03
Change	48.9		%	54.1		%
Straight-Line Rent Growth⁽²⁾
Expiring Rate	$	27.25		$	27.65
New/renewal rate	$	42.94		$	44.83
Change	57.6		%	62.1		%
Weighted Average Lease Terms
New (in months)	71.9			98.0
Renewal (in months)	61.7			61.4



Tenant Improvements and Leasing Commissions⁽³⁾	Lease Transaction Costs Per Square Foot
	Three Months Ended June 30, 2016				Six Months Ended June 30, 2016
	Total		Annual		Total		Annual
New leases	$	56.01	$	9.34	$	71.44	$	8.74
Renewal leases	$	18.71	$	3.64	$	17.62	$	3.44
Blended	$	27.84	$	5.20	$	42.82	$	6.54

______________________________


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


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


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

Hudson Pacific Properties, Inc.

Second Quarter 2016 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

Skyport Plaza⁽³⁾

North San Jose

365,502

5/4/2016

9/1/2016

34.20

7/31/2022

Embarcadero Place

Palo Alto

36,594

6/1/2016

10/1/2016

44.64

5/31/2020

Lockheed

Palo Alto

42,899

6/1/2016

9/1/2016

68.16

5/31/2021

Page Mill Center

Palo Alto

22,392

6/1/2016

10/1/2016

75.60

5/31/2023

Embarcadero Place

Palo Alto

11,802

6/30/2016

1/1/2017

45.00

12/31/2026

Los Angeles, California

604 Arizona⁽⁴⁾

West Los Angeles

44,260

2/1/2016

5/1/2016

42.65

2/28/2026

______________________________


(1)	Consists of leases greater than 10,000 square feet which commenced on or prior to June 30, 2016, 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, 2016.

(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, 2016, and (ii) 12, by (iii) leased square footage. Base rents do not include tenant reimbursements.


(3)	Effective May 4, 2016, the terms of the existing lease with Qualcomm at Skyport Plaza was extended to July 31, 2022 with rent abatement during the five months of June, July and August of 2016 and January and February of 2017.


(4)	Effective February 1, 2016, the terms of the existing lease with Real Office Centers Corporation at 604 Arizona was extended to February 28, 2026 with three months of up-front rent abatement.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

QUARTERLY UNCOMMENCED/BACKFILL — NEXT EIGHT QUARTERS⁽¹⁾

	Q3 2016			Q4 2016			Q1 2017				Q2 2017			Q3 2017			Q4 2017				Q1 2018			Q2 2018
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	Starting Rent/sf⁽²⁾
Greater Seattle, Washington
Lynnwood	—	$	—	—	$	—	—	$	—		—	$	—	—	$	—	—	$	—		—	$	—	—	$	—
Lake Union	—	—		—	—		—	—			—	—		—	—		—	—			—	—		—	—
Pioneer Square	7,224	34.31		—	—		—	—			—	—		—	—		91,357	38.00		⁽³⁾	—	—		—	—
Subtotal	7,224	$	34.31	—	$	—	—	$	—		—	$	—	—	$	—	91,357	$	38.00		—	$	—	—	$	—
San Francisco Bay Area, California
San Francisco	23,252	$	64.23	29,544	$	68.33	—	$	—		39,494	$	69.48	—	$	—	—	$	—		—	$	—	—	$	—
San Mateo	3,439	55.80		10,020	54.00		—	—			—	—		—	—		—	—			—	—		—	—
Foster City	39,727	42.96		22,265	67.54		—	—			—	—		—	—		—	—			—	—		—	—
Redwood Shores	14,316	54.13		—	—		10,560	66.00			—	—		—	—		—	—			—	—		—	—
Palo Alto	26,080	85.20		—	—		—	—			—	—		—	—		—	—			—	—		—	—
Silicon Valley	7,956	47.40		—	—		—	—			—	—		—	—		—	—			—	—		—	—
North San Jose	19,936	36.22		12,331	39.68		5,034	37.80			—	—		—	—		—	—			—	—		—	—
Subtotal	134,706	$	55.59	74,160	$	61.39	15,594	$	56.90		39,494	$	69.48	—	$	—	—	$	—		—	$	—	—	$	—
Los Angeles, California
Burbank	—	$	—	12,803	$	42.00	—	$	—		—	$	—	—	$	—	—	$	—		—	$	—	—	$	—
Hollywood	—	—		—	—		273,749	54.00		⁽⁴⁾	—	—		—	—		—	—			—	—		—	—
Torrance	—	—		—	—		—	—			—	—		—	—		—	—			—	—		—	—
West Los Angeles	113,189	49.56		—	—		—	—			—	—		—	—		—	—			—	—		—	—
Subtotal	113,189	$	49.56	12,803	$	42.00	273,749	$	54.00		—	$	—	—	$	—	—	$	—		—	$	—	—	$	—

TOTAL	255,119	$	52.31	86,963	$	58.54	289,343	$	54.16		39,494	$	69.48	—	$	—	91,357	$	38.00		—	$	—	—	$	—

______________________


(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, 2016 but with commencement dates after June 30, 2016 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.


(3)	Saltchuk Resources, Inc. is anticipated to commence on November 1, 2017.


(4)	Netflix, Inc. is anticipated to commence 273,749 square feet on January 1, 2017. The lease will commence 6 months after the delivery date of July 1, 2016. Netflix is anticipated to occupy an additional 49,524 square feet on July 1, 2018.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

QUARTERLY OFFICE LEASE EXPIRATIONS — NEXT EIGHT QUARTERS⁽¹⁾

	Q3 2016⁽²⁾				Q4 2016				Q1 2017					Q2 2017				Q3 2017					Q4 2017						Q1 2018						Q2 2018
Location	Expiring SF⁽³⁾		Rent/sf⁽⁴⁾		Expiring SF⁽³⁾		Rent/sf⁽⁴⁾		Expiring SF⁽³⁾		Rent/sf⁽⁴⁾			Expiring SF⁽³⁾		Rent/sf⁽⁴⁾		Expiring SF⁽³⁾		Rent/sf⁽⁴⁾			Expiring SF⁽³⁾		Rent/sf⁽⁴⁾				Expiring SF⁽³⁾		Rent/sf⁽⁴⁾				Expiring SF⁽³⁾		Rent/sf⁽⁴⁾
Greater Seattle, Washington
Lake Union	—		$	—	600		$	43.70	—		$	—		—		$	—	—		$	—		—		$	—			—		$	—			—		$	—
Lynnwood	—		—		—		—		—		—			—		—		—		—			6,049		20.50				2,343		20.76				1,756		20.50
Pioneer Square	—		—		8,349		25.67		6,000		28.50			—		—		—		—			3,260		33.00				—		—				2,624		30.80
Subtotal	—		$	—	8,949		$	26.88	6,000		$	28.50		—		$	—	—		$	—		9,309		$	24.88			2,343		$	20.76			4,380		$	26.67
San Francisco Bay Area, California
Foster City	4,329		$	57.15	15,618		$	46.50	39,294		$	39.48		7,868		$	53.94	5,577		$	56.96		25,668		$	52.13			11,507		$	44.67			12,806		$	55.89
Palo Alto	58,597		55.48		41,694		43.06		67,653		76.29			28,138		67.22		2,199		90.00			121,754		72.55		⁽⁸	⁾	37,393		78.98				12,637		95.60
Redwood Shores	47,573		109.24		31,579		39.70		33,140		44.19			30,014		50.11		57,436		41.73			54,755		56.02				98,806		43.96				58,068		53.44
San Francisco	37,301		37.18		3,515		37.73		86,144		39.76			26,144		34.92		138,531		46.96		⁽⁶⁾	187,529		11.43		⁽⁹	⁾	20,842		47.43				6,794		39.25
North San Jose	62,578		31.29		66,571		32.71		137,072		28.29		⁽⁵⁾	99,680		30.56		108,406		30.44		⁽⁷⁾	120,174		29.33		⁽¹⁰	⁾	235,979		35.82		⁽¹¹	⁾	59,113		33.17
San Mateo	14,355		43.46		9,583		41.46		7,182		46.84			39,045		43.21		7,576		43.92			15,661		36.70				31,865		39.57				14,846		54.33
Silicon Valley	8,848		33.03		16,409		37.63		—		—			1,093		36.92		33,396		32.98			13,018		41.19				4,876		44.78				19,691		40.31
Subtotal	233,581		$	55.47	184,969		$	38.38	370,485		$	42.69		231,982		$	40.98	353,121		$	40.07		538,559		$	37.17			441,268		$	42.45			183,955		$	48.13
Los Angeles, California
Burbank	4,953		$	44.18	9,005		$	44.50	—		$	—		—		$	—	—		$	—		8,257		$	39.00			3,413		$	45.89			—		$	—
Downtown Los Angeles	—		—		—		—		—		—			—		—		—		—			—		—				—		—				—		—
Hollywood	—		—		—		—		—		—			2,664		—		—		—			—		—				10,000		50.50				—		—
Torrance	—		—		—		—		—		—			—		—		—		—			—		—				—		—				—		—
West Los Angeles	—		—		194		50.97		—		—			8,841		44.70		5,253		65.42			1,125		47.64				4,107		41.92				1,087		47.88
Subtotal	4,953		$	44.18	9,199		$	44.64	—		$	—		11,505		$	34.35	5,253		$	65.42		9,382		$	40.04			17,520		$	47.59			1,087		$	47.88
TOTAL	238,534		$	55.23	203,117		$	38.16	376,485		$	42.46		243,487		$	40.67	358,374		$	40.45		557,250		$	37.01			461,131		$	42.53			189,422		$	47.64
Expirations as % of In-Service Portfolio	2.0	%			1.7	%			3.1	%				2.0	%			2.9	%				4.6	%					3.8	%					1.6	%

______________________


(1)	The following schedule does not reflect 39,943 square feet that expired on June 30, 2016.


(2)	Q3 2016 expiring square footage does not include 43,197 square feet of month-to-month leases.


(3)	Includes leases that expire on the last day of the quarter.


(4)	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.


(5)	The top three expiring tenants based on annual base rent by property and square footage: (i) FICO at Metro Plaza for 45,154 square feet; (ii) Fidelity National Title Insurance at Gateway Center for 10,919 square feet; and (iii) Paychex at 1740 Technology for 10,437 square feet.


(6)	The total expiring square footage consists of: (i) AIG, Inc at Rincon Center for 132,600 square feet and (ii) Globant at 875 Howard for 5,931 square feet.


(7)	The top three expiring tenants based on annual base rent by property and square footage: (i) NTT America, Inc. at Concourse for 28,930 square feet, (ii) Mega Chips Technology at Gateway Center for 23,146 square feet and (iii) U-CAN Americas, Inc. at Metro Plaza for 11,147 square feet.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data


(8)	The top three expiring tenants based on annual base rent by property and square footage: (i) Robert Bosch, LLC at Foothill Research for 72,417 square feet; (ii) K&L Gates LLP at Clocktower Square for 28,305 square feet; and (iii) Zoox at 2180 Sandhill for 18,773 square feet.


(9)	The total expiring square footage consists of: (i) Bank of America at 1455 Market for 185,021 square feet; (ii) Rickey L. Liu at Rincon Center for 1,271 square feet; and (iii) Pepe’s Taqueria at Rincon Center for 1,237 square feet.


(10)	The top three expiring tenants based on annual base rent by property and square footage: (i) Haynes and Boone, LLP at Gateway Center for 23,233 square feet; (ii) Murata Electronics North America at Metro Plaza for 18,782 square feet; and (iii) Hensel Phelps Construction at Concourse for 13,688 square feet.


(11)	The top three expiring tenants based on annual base rent by property and square footage: (i) Nutanix, Inc. at 1740 Technology for 137,307 square feet and Metro Plaza for 28,121 square feet; (ii) Lumenis, Inc. at Gateway for 15,227 square feet; and (iii) Level 3 Communications, LLC at Concourse for 7,934 square feet.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

OFFICE LEASE EXPIRATIONS—ANNUAL



Year of Lease Expiration	Square Footage of Expiring Leases	Percentage 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	1,590,707	12.1	%
2016	481,594	3.7		$	22,274,477	4.6	%	$	46.25	$	46.64
2017	1,535,596	11.7		59,449,353		12.2		38.71		39.73
2018	1,328,218	10.1		51,359,668		10.5		38.67		40.97
2019	2,250,524	17.1		86,881,983		17.8		38.61		43.29
2020	964,241	7.3		42,722,070		8.8		44.31		49.93
2021	1,282,561	9.7		50,727,265		10.4		39.55		45.87
2022	722,653	5.5		29,361,322		6.0		40.63		49.56
2023	707,557	5.4		24,769,488		5.1		35.01		42.49
2024	154,055	1.2		7,594,354		1.6		49.30		58.32
2025	542,608	4.1		27,316,543		5.6		50.34		63.31
Thereafter	763,877	5.8		45,825,587		9.4		59.99		69.59
Building management use	107,164	0.8		—		—		—		—
Signed leases not commenced⁽⁴⁾	739,824	5.6		39,011,906		8.0		52.73		68.27
Total/Weighted Average	13,171,179	100.0	%	$	487,294,015	100.0	%	$	42.08	$	47.94

______________________________


(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, 2016, 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, 2016.


(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, 2016.

(4)

Annualized base rent per leased square foot and annualized base rent per square foot at expiration for signed leases not commenced, reflects uncommenced leases on space not occupied as of June 30, 2016 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, 2016, divided by (ii) square footage under uncommenced leases as of June 30, 2016.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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	2.3%	$	19,176,525	4.3%
Weil, Gotshal & Manges LLP⁽³⁾	Towers at Shore Center	1	1	Various	101,000	0.8	16,265,637		3.6
Uber Technologies, Inc.⁽⁴⁾	Various	2	2	Various	330,334	2.5	15,614,491		3.5
Riot Games, Inc.⁽⁵⁾	Various	2	2	Various	286,629	2.2	15,557,389		3.5
Cisco Systems, Inc.⁽⁶⁾	Various	2	2	Various	474,576	3.6	15,377,341		3.4
Qualcomm	Skyport Plaza	2	1	7/31/2022	365,502	2.8	12,500,168		2.8
Square, Inc.	1455 Market Street	1	1	9/27/2023	334,284	2.5	10,938,442		2.4
Salesforce.com⁽⁷⁾	Rincon Center	1	1	Various	237,567	1.8	10,914,802		2.4
Stanford⁽⁸⁾	Various	3	2	Various	132,496	1.0	9,235,901		2.1
Warner Bros. Entertainment	Pinnacle II	1	1	12/31/2021	230,000	1.7	9,099,401		2.0
Warner Music Group	Pinnacle I	1	1	12/31/2019	195,166	1.5	8,169,569		1.8
NetSuite, Inc.⁽⁹⁾	Peninsula Office Park	2	1	Various	166,667	1.3	7,649,387		1.7
EMC Corporation⁽¹⁰⁾	Various	3	2	Various	294,756	2.2	7,596,737		1.7
GSA⁽¹¹⁾	Various	5	5	Various	202,097	1.5	6,203,552		1.4
Nutanix, Inc.⁽¹²⁾	Various	2	2	3/31/2018	165,428	1.3	6,134,070		1.4
TOTAL		30	26		3,822,231	29.0%	$	170,433,412	38.0%

______________________________


(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, 2016, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.


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


(3)	Weil, Gotshal & Manges LLP expiration by square footage: (i) 25,320 square feet expiring on August 31, 2016 and (ii) 75,680 square feet expiring on August 31, 2026.


(4)	Uber Technologies, Inc. expirations by property and square footage: (i) 310,088 square feet at 1455 Market expiring on February 28, 2025 and (ii) 20,246 square feet at Skyway Landing expiring March 31, 2017.


(5)	Riot Games, Inc. expirations by property and square footage: (i) 2,592 square feet at Shorebreeze Center expiring on November 30, 2016 and (ii) 284,037 square feet at Element LA expiring on March 31, 2030. This tenant may elect to exercise their early termination right at Element LA with respect to 284,037 square feet effective March 31, 2025.


(6)	Cisco Systems, Inc. expirations by property and square footage: (i) 2,996 square feet at Concourse expiring March 31, 2018 and (ii) 471,580 square feet at Campus Center expiring on December 31, 2019. This tenant may elect to exercise their early termination right at Campus Center with respect to 471,850 square feet effective December 31, 2017.

(7)

Salesforce.com is expected to take possession of an additional 4,144 square feet during the second quarter of 2017. Expirations by square footage: (i) 78,872 square feet expiring on July 31, 2025; (ii) 59,689 square feet expiring on April 30, 2027; (iii) 93,028 square feet expiring on October, 31, 2028; and (iv) 5,978 square feet of month-to-month storage space. This tenant may elect to exercise their early termination right with respect to 74,966 square feet between August 1, 2021 and September 30, 2021.


(8)	Stanford Expirations by property and square footage: (i) Stanford Healthcare 63,201 square feet at Page Mill Center expiring June 30, 2019; (ii) Stanford University 26,080 square feet at Palo Alto Square expiring on December 31, 2019; and (iii) Board of Trustees Stanford 43,215 square feet at Page Mill Center expiring December 31, 2022.


(9)	NetSuite, Inc. expirations by square footage: (i) 38,194 square feet expiring on August 31, 2019 and (ii) 128,473 square feet expiring May 31, 2022.


(10)	EMC expirations by property and square footage: (i) 66,510 square feet at 875 Howard Street expiring on June 30, 2019; (ii) 185,292 square feet at 505 First expiring on October 18, 2021; and (iii) 42,954 square feet at 505 First expiring on December 31, 2023.


(11)	GSA expirations by property and square footage: (i) 71,729 square feet at 1455 Market Street expiring on February 19, 2019; (ii) 28,993 square feet at Northview expiring on April 4, 2020;

(iii) 33,582 square feet at Rincon Center expiring May 31, 2020; (iv) 49,405 square feet at 901 Market Street expiring on July 31, 2021; and (v) 18,388 square feet at Concourse expiring on May 7, 2024.


(12)	Nutanix, Inc. expirations by property and square footage: (i) 137,307 square feet at 1740 Technology expiring on March 31, 2018 and (ii) 28,121 square feet at Metro Plaza expiring on March 31, 2018.

Hudson Pacific Properties, Inc.

Second Quarter 2016 Supplemental Operating and Financial Data

OFFICE PORTFOLIO DIVERSIFICATION



Industry	Total Square Feet⁽¹⁾	Annualized Rent as of Percent of Total
Business Services	833,124	6.9	%
Educational	100,454	1.1
Financial Services	384,967	1.6
Insurance	362,931	3.1
Legal	674,544	10.9
Media & Entertainment	1,378,888	13.4
Other	1,026,057	9.8
Real Estate	59,691	0.6
Retail	589,252	4.1
Technology	4,854,729	43.4
Advertising	125,220	0.9
Government	301,228	2.1
Healthcare	192,760	2.1
TOTAL	10,883,845	100.0	%

______________________________


(1)	Does not include signed leases not commenced.

Hudson Pacific Properties, Inc.

Second Quarter 2016 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 our 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.

StreetInsider

Log in to your account:

Form 8-K Hudson Pacific Propertie For: Aug 04 Filed by: Hudson Pacific Properties, L.P.

Categories

Next Articles