Disciplined investing allows us to deliver for our shareholders

Financial Results

Now in our fifth month with some degree of shutdown related to the pandemic, we're adapting swiftly to evolving protocols and guidelines, ensuring our properties stay open, operational and safe for our tenants, employees and service providers. Our rent collections have been exceptional. In the second quarter, we collected 97% of our total rents, including 99% of office and 100% of studio rents, with these trends continuing into July. This is a testament to the long-term nature of our office and now many of our studio leases, and our very high-quality tenancy in both those segments. Our storefront retail tenants, which comprise just under 3% of our total rent, are bearing the brunt of this temporary, but protracted crisis. In recognition of the amenities and services these retailers provide for our tenants and our communities, we’re working closely with them to find viable solutions.

Our company remains extraordinarily well-positioned, despite various headwinds and continued uncertainty as to the duration of the pandemic and depth of the economic downturn. Our stabilized and in-service office portfolios ended the second quarter at 95.1% and 94.0% leased. Our remaining 2020 office lease expirations equate to just 3.6% of our ABR. Even so, we signed approximately 110,000 square feet of new and renewal office leases in the second quarter, with cash rent growth of 21% aside from short-term extensions. Our recently announced joint venture with Blackstone, which we expect to close imminently, further fortifies our already strong balance sheet, reduces our funding requirements for future development, and brings our liquidity to over $1.6 billion, with no maturities until 2022. In short, we’ve optimized financial capacity and flexibility to fund our operations and/or to strategically expand our portfolio as opportunities arise.

Victor Coleman

Chairman & CEO, Hudson Pacific Properties

Quarterly & Annual Results