LOS ANGELES--(BUSINESS WIRE)--
Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today
announced financial results for the third quarter ended September 30,
2012.
Financial Results
Funds From Operations (FFO) (excluding specified items) for the three
months ended September 30, 2012 totaled $10.5 million, or $0.21 per
diluted share, compared to FFO (excluding specified items) of $9.0
million, or $0.25 per share, a year ago. The specified items for the
third quarter of 2012 consisted of expenses associated with the
acquisition of the Olympic Bundy Media Campus in West Los Angeles of
$0.5 million, or $0.01 per diluted share. Specified items for the third
quarter of 2011 consisted of expenses associated with the acquisitions
of 604 Arizona in Santa Monica, 275 Brannan Street in San Francisco and
625 Second Street in San Francisco, of $0.8 million, or $0.02 per
diluted share. FFO including the specified items totaled $10.1 million,
or $0.20 per diluted share, for the three months ended September 30,
2012, compared to $8.2 million, or $0.23 per share, a year ago.
The Company reported a net loss attributable to common shareholders of
$3.4 million, or $(0.07) per diluted share, for the three months ended
September 30, 2012, compared to net loss attributable to common
shareholders of $2.7 million, or $(0.08) per diluted share, for the
three months ended September 30, 2011.
“The third quarter was characterized by the completion of important
acquisition and financing transactions and critical leasing activity
culminating with the execution of significant leases shortly following
the quarter," said Mr. Victor J. Coleman, Chairman and Chief Executive
Officer of Hudson Pacific Properties, Inc. "During the quarter, we
completed our previously announced acquisition of the Olympic Bundy
Media Campus in Los Angeles and replaced our $200.0 million secured
revolving credit facility with a $250.0 million unsecured revolving
credit facility. The pace of leasing activity also remained strong not
only with the execution of 148,048 square feet of new and renewal leases
in the quarter, but with the fruit of third quarter efforts realized
subsequent to the end of the period, including the execution of a
246,078 square foot lease with Square, Inc. at our 1455 Market Street
property and 17,521 square feet lease with Hotel Tonight, Inc. at our
901 Market Street property."
Third Quarter Highlights
-
FFO (excluding specified items) of $10.5 million, or $0.21 per diluted
share, compared to $9.0 million, or $0.25 per share, a year ago;
-
Completed the acquisition of the Olympic Bundy Media Campus in West
Los Angeles for $89.0 million;
-
Completed new and renewal leases totaling 148,048 square feet;
-
Stabilized office portfolio leased rate of 93.3% at September 30, 2012
(excluding non-stabilized properties of 275 Brannan Street, 10900
Washington, 901 Market Street, and Olympic Bundy Media Campus);
-
Entered into a new $250.0 million unsecured revolving credit facility,
replacing the Company's previous $200.0 million secured revolving
credit facility at more favorable terms;
-
Declared and paid quarterly dividend of $0.125 per common share; and
-
Declared and paid dividend of $0.52344 per share on 8.375% Series B
Cumulative Preferred Stock.
Combined Operating Results For The Three Months Ended September 30,
2012
Total revenue during the quarter increased 13.9% to $42.1 million from
$36.9 million for the same quarter a year ago. The increase in total
revenue was primarily attributable to a $5.5 million increase in rental
revenue to $29.6 million and a $1.0 million increase in parking and
other revenue to $2.6 million, largely resulting from the acquisition of
office properties during the second half of 2011 and second and third
quarters of 2012, and higher rental revenue at the Company's media and
entertainment properties resulting from higher occupancy, all partially
offset by a $1.2 million decrease in tenant recoveries to $5.4 million,
stemming from a combination of factors discussed below.
Total operating expenses increased 15.0% to $37.7 million from $32.8
million for the same quarter a year ago. The increase in total operating
expenses was primarily the result of a $2.5 million increase in
depreciation and amortization to $13.6 million and a $0.3 million
increase in office operating expenses to $13.0 million, in both cases
primarily attributable to office properties acquired during the second
half of 2011 and second and third quarters of 2012, a $1.3 million
increase in general and administrative expenses to $4.2 million, and a
$0.8 million increase in media and entertainment operating expenses to
$6.9 million, resulting from higher occupancy at the Company’s media and
entertainment properties compared to the same quarter a year ago.
As a result, income from operations increased 5.4% to $4.4 million for
the third quarter of 2012, compared to income from operations of $4.1
million for the same quarter a year ago.
Interest expense during the third quarter increased 10.8% to $4.5
million, compared to interest expense of $4.1 million for the same
quarter a year ago. At September 30, 2012, the Company had $359.5
million of notes payable, compared to $350.3 million as of June 30, 2012
and $298.7 million at September 30, 2011.
Segment Operating Results For The Three Months Ended September 30,
2012
Office Properties
Total revenue at the Company’s office properties increased 16.2% to
$31.1 million from $26.7 million for the same quarter a year ago. The
increase was primarily the result of a $4.6 million increase in rental
revenue to $23.6 million, and a $1.0 million increase in parking and
other revenue to $2.6 million, largely resulting from the acquisition of
office properties during the second half of 2011 and second and third
quarters of 2012, partially offset by a $1.2 million decrease in tenant
recoveries to $5.0 million resulting from a combination of factors,
including abatements with Bank of America at 1455 Market pending
commencement of the lease with the Metro Transit Authority, lease
expirations at Rincon Center, and a reconciliation for prior period
recoveries at our First Financial property, among other items.
Office property operating expenses increased 2.0% to $13.0 million from
$12.8 million for the same quarter a year ago. The increase was
primarily the result of office properties acquired during the second
half of 2011 and second and third quarters of 2012.
At September 30, 2012, the Company’s office portfolio was 87.0% leased,
including the approximately 51,710 square-foot vacant 275 Brannan,
approximately 9,919 square-foot vacant 10900 Washington, approximately
212,319 square-foot recently acquired 901 Market Street, and
approximately 241,427 square-foot recently acquired Olympic Bundy Media
Campus properties, which the Company is in the process of renovating in
anticipation of new tenancy. During the quarter, the Company executed 16
new and renewal leases totaling 148,048 square feet.
Media and Entertainment Properties
Total revenue at the Company’s media and entertainment properties
increased 8.1% to $11.0 million from $10.2 million for the same quarter
a year ago. The increase was primarily the result of a $0.9 million
increase in rental revenue to $6.1 million resulting from higher
occupancy compared to the same quarter a year ago.
Total media and entertainment operating expenses increased 13.2% to $6.9
million from $6.1 million for the same quarter a year ago, primarily as
a result of higher operating expenses associated with higher occupancy
and, to a lesser extent, higher ground rent under a ground lease for a
portion of our Sunset Gower property.
As of September 30, 2012, the trailing 12-month occupancy for the
Company’s media and entertainment portfolio decreased to 71.0% from
73.1% for the trailing 12-month period ended September 30, 2011, but
trailing 3-month occupancy significantly improved over the second
quarter of 2012, with occupancy reaching 77.0% for quarter ended
September 30, 2012, up from 71.5% for the quarter ended June 30, 2012.
Combined Operating Results For The Nine Months Ended September 30,
2012
For the first nine months of 2012, total revenue was $120.9 million, an
increase of 15.0% from $105.1 million in the same period the prior year.
Total operating expenses were $108.4 million, an increase of 18.2% from
$91.7 million in the same period a year ago. As a result, income from
operations was $12.5 million, compared to income from operations of
$13.4 million for the same period a year ago. The Company had $0.8
million of acquisition-related expense during the first nine months of
2012, compared to acquisition-related expense of $0.8 million for the
same period a year ago. Interest expense during the first nine months of
2012 increased 5.5% to $14.0 million from $13.2 million in the same
period of 2011.
Balance Sheet
At September 30, 2012, the Company had total assets of $1.3 billion,
including unrestricted cash and cash equivalents of $27.3 million. At
September 30, 2012, the Company had total capacity of approximately
$202.2 million on its $250.0 million unsecured credit facility, of which
$10.0 million had been drawn.
Acquisitions
On September 5, 2012, the Company completed the acquisition of the
Olympic Bundy Media Campus located at 1901, 1925 and 1933 South Bundy
Drive and 12333 West Olympic Boulevard in Los Angeles. The total
purchase price for the property was $89.0 million. The Olympic Bundy
Media Campus consists of 11.55 acres, with four existing buildings
totaling approximately 241,427 square feet. Approximately 53,152 square
feet of the project is currently leased through May 2013 to the Rubicon
Project, an online advertising technology company. The remaining 188,275
square feet of space is scheduled to be renovated for best-in-class
creative office use by early 2014 to capitalize on West Los Angeles'
growing technology, entertainment and media tenant demand.
Financings
During the third quarter, the Company replaced its $200.0 million
secured revolving credit facility with a $250.0 million unsecured
revolving credit facility with a group of lenders for which Wells Fargo
Bank, N.A. acted as administrative agent and its affiliate acted as
joint lead arranger, Bank of America, N.A. acted as joint lead arranger
and, together with Barclays Capital, acted as joint syndication agent,
and Keybank National Association acted as documentation agent. Hudson
Pacific Properties, L.P. is the borrower under our new unsecured
revolving credit facility. The facility is required to be guaranteed by
the Company and all of its subsidiaries that own unencumbered
properties. The facility includes an accordion feature that allows the
Company to increase the availability by $150.0 million, to $400.0
million, under specified circumstances and subject to receiving
commitments from lenders.
The facility bears interest at a rate per annum equal to LIBOR plus 155
basis points to 220 basis points, depending on the Company's leverage
ratio. If the Company obtains a credit rating for its senior unsecured
long term indebtedness, it may make an irrevocable election to change
the interest rate for the facility to a rate per annum equal to Libor
plus 100 basis points to 185 basis points, depending on the credit
rating. The facility is subject to a facility fee in an amount equal to
the Company's unused commitments multiplied by a rate per annum equal to
25 basis points to 35 basis points, depending on usage of the facility,
or, if the Company makes the credit rating election, in an amount equal
to the aggregate amount of the Company's commitments multiplied by a
rate per annum equal to 15 basis points to 45 basis points, depending
upon the credit rating. The amount available to borrow under the
facility is subject to compliance with various covenants more fully
described in the Company's 10-Q quarterly report for the third quarter
of 2012. The facility also includes certain limitations on dividend
payouts and distributions, limits on certain types of investments
outside of our primary business, and other customary affirmative and
negative covenants. Our ability to borrow under the facility is subject
to continued compliance with these covenants. As of the end of the third
quarter, the Company had the ability to borrow up to $202.2 million, of
which $10.0 million had been drawn.
Financings (subsequent to end of third quarter)
On October 9, 2012, the Company closed a three-year loan with Wells
Fargo Bank, National Association, secured by the Company's 275 Brannan
property, which upon full disbursement, will total $15.0 million. The
loan bears interest at LIBOR plus 200 basis points and will mature on
October 5, 2015, provided, that the Company may extend such maturity for
one additional year subject to satisfaction of certain conditions.
Proceeds from the loan are expected to be used to fund base building,
tenant improvement, and leasing commission costs associated with the
renovation and lease-up of this property.
On October 30, 2012, the Company closed a four-year loan with Wells
Fargo Bank, National Association, secured by the Company's 901 Market
Street property, $49.6 million of which was funded at closing, with an
additional $11.9 million available to fund base building, tenant
improvement, and leasing commission costs associated with the renovation
and lease-up of this property. Upon full disbursement, the loan will
total $61.5 million. The loan bears interest at LIBOR plus 225 basis
points, until such time as the property achieves a trailing six month
9.0% debt yield, at which time interest is reduced to LIBOR plus 200
basis points. The loan will mature on October 31, 2016, provided, that
the Company may extend such maturity for one additional year subject to
satisfaction of certain conditions.
Leasing Activities (Subsequent to end of third quarter)
On October 19, 2012, the Company signed a new lease at its 1455 Market
Street property to Square, Inc., a leading electronic payment service
provider that enables credit card payments through mobile devices. This
new lease encompasses 246,078 square feet of initial occupancy, and
includes an expansion option for an additional 81,354 square feet, for a
combined 327,432 square feet of occupancy. With respect to the 246,078
square feet of initial occupancy, 181,805 square feet is scheduled for
commencement in early 2013, 15,741 square feet is scheduled for
commencement in July, 2013, and the remaining 48,532 square feet is
scheduled for commencement in early 2014. Square has the option to take
an additional 81,354 square feet with a scheduled commencement in early
2014, which upon exercise, would result in a combined 327,432 square
foot lease. The 246,078 square feet backfills 206,760 square feet of
space occupied by the project's largest tenant and takes an additional
39,318 square feet of currently vacant space. The exercise of the 81,354
square foot option would result in the backfill of a total of 288,114
square feet of space currently occupied by the project's largest tenant.
On October 10, 2012, the Company signed a new lease at its 901 Market
Street property to Hotel Tonight, Inc., a leading online hotel room
reservation company. This new lease encompasses 17,521 square feet for a
term of six years, with an expected commencement in December, 2012.
Dividend
The Company’s Board of Directors declared a dividend on its common stock
of $0.125 per share and on its 8.375% Series B Cumulative Preferred
Stock of $0.52344 per share for the third quarter of 2012. Both
dividends were paid on October 1, 2012 to stockholders of record on
September 20, 2012.
2012 Outlook
The Company is reaffirming full-year 2012 FFO guidance in the range of
0.83 to $0.87 (excluding specified items) per diluted share. This
guidance reflects completed acquisitions, including the acquisition of
the Olympic Bundy Campus, but excludes acquisition-related expenses
associated with acquisitions, and reflects and the financing and leasing
activity referenced in this release, including the terms of the $250.0
million unsecured revolving credit facility. This guidance also reflects
the Company's FFO for the nine months ended September 30, 2012 of $0.68
(excluding specified items) per diluted share outstanding over that
nine-month period. The full-year 2012 FFO estimates reflect management's
view of current and future market conditions, including assumptions with
respect to rental rates, occupancy levels and the earnings impact of
events referenced in this release, but otherwise exclude any impact from
future unannounced or speculative acquisitions, dispositions, debt
financings or repayments, recapitalizations, capital market activity, or
similar matters.
Supplemental Information
Supplemental financial information regarding the Company’s third quarter
2012 results may be found in the Investor Relations
section of the Company’s Web site at www.hudsonpacificproperties.com.
This supplemental information provides additional detail on items such
as property occupancy, financial performance by property and debt
maturity schedules.
Conference Call
The Company will conduct a conference call today to discuss the results
at 1:30 p.m. PST / 4:30 p.m. EST. To participate in the event by
telephone, please dial (877) 407-0784 five to 10 minutes prior to the
start time (to allow time for registration) and use conference ID
401595. International callers should dial (201) 689-8560 and enter the
same conference ID number. The call will also be broadcast live over the
Internet and can be accessed on the Investor Relations section of the
Company's Web site at www.hudsonpacificproperties.com.
To listen to the live webcast, please visit the site at least 15 minutes
prior to the start of the call in order to register, download and
install any necessary audio software. A replay of the call will also be
available for 90 days on the Company's Web site. For those unable to
participate during the live broadcast, a replay will be available
beginning November 5, 2012, at 4:30 p.m. PST / 7:30 p.m. EST, through
November 12, at 8:59 p.m. PST / 11:59 p.m. EST. To access the replay,
dial (877) 870-5176 and use passcode 401595. International callers
should dial (858) 384-5517 and enter the same conference ID number.
Use of Non-GAAP Information
The Company calculates funds from operations before non-controlling
interest (FFO) in accordance with the standards established by the
National Association of Real Estate Investment Trusts (NAREIT). FFO
represents net income (loss), computed in accordance with accounting
principles generally accepted in the United States of America (GAAP),
excluding gains (or losses) from sales of depreciable operating
property, real estate depreciation and amortization (excluding
amortization of above/below market lease intangible assets and
liabilities and amortization of deferred financing costs and debt
discounts/premium) and after adjustments for unconsolidated partnerships
and joint ventures. The Company uses FFO as a supplemental performance
measure because, in excluding real estate depreciation and amortization
and gains and losses from property dispositions, it provides a
performance measure that, when compared year over year, captures trends
in occupancy rates, rental rates and operating costs. The Company also
believes that, as a widely recognized measure of the performance of
REITs, FFO will be used by investors as a basis to compare its operating
performance with that of other REITs. However, because FFO excludes
depreciation and amortization and captures neither the changes in the
value of our properties that results from use or market conditions nor
the level of capital expenditures and leasing commissions necessary to
maintain the operating performance of its properties, all of which have
real economic effect and could materially impact the Company's results
from operations, the utility of FFO as a measure of our performance is
limited. Other equity REITs may not calculate FFO in accordance with the
NAREIT definition and, accordingly, the Company's FFO may not be
comparable to such other REITs’ FFO. Accordingly, FFO should be
considered only as a supplement to net income as a measure of the
Company's performance. FFO should not be used as a measure of the
Company's liquidity, nor is it indicative of funds available to fund the
Company's cash needs, including the Company's ability to pay dividends.
FFO should not be used as a supplement to or substitute for cash flow
from operating activities computed in accordance with GAAP.
About Hudson Pacific Properties
Hudson Pacific Properties, Inc. is a full-service, vertically integrated
real estate company focused on owning, operating and acquiring
high-quality office properties and state-of-the-art media and
entertainment properties in select growth markets primarily in Northern
and Southern California. The Company's strategic investment program
targets high barrier-to-entry, in-fill locations with favorable,
long-term supply-demand characteristics in select target markets
including Los Angeles, Orange County, San Diego, San Francisco, Silicon
Valley and the East Bay. The Company's portfolio consists of
approximately 6.0 million square feet (including undeveloped land). The
Company intends to elect to be taxed and to operate in a manner that
will allow it to qualify as a real estate investment trust, or REIT, for
federal income tax purposes. Hudson Pacific Properties is a component of
the Russell 2000® and the Russell 3000® indices. For additional
information, please visit www.hudsonpacificproperties.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” or
“potential” or the negative of these words and phrases or similar words
or phrases that are predictions of or indicate future events or trends
and that do not relate solely to historical matters. Forward-looking
statements involve known and unknown risks, uncertainties, assumptions
and contingencies, many of which are beyond the Company’s control, that
may cause actual results to differ significantly from those expressed in
any forward-looking statement. All forward-looking statements reflect
the Company’s good faith beliefs, assumptions and expectations, but they
are not guarantees of future performance. Furthermore, the Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, of new information, data or methods, future events or other
changes. For a further discussion of these and other factors that could
cause the Company’s future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors” in
the Company’s Annual Report on Form 10-K for the year ended December 31,
2011 filed with the Securities and Exchange Commission on March 14,
2012, and other risks described in documents subsequently filed by the
Company from time to time with the Securities and Exchange Commission.
(FINANCIAL TABLES FOLLOW)
|
Hudson Pacific Properties, Inc.
Consolidated Balance Sheets
(Unaudited, in thousands, except share data)
|
|
|
|
|
|
|
September 30,
2012
|
|
|
December 31,
2011
|
|
ASSETS
|
|
|
|
|
|
|
|
REAL ESTATE ASSETS
|
|
|
|
|
|
|
|
Land
|
|
|
$
|
464,693
|
|
|
|
$
|
368,608
|
|
|
Building and improvements
|
|
|
696,003
|
|
|
|
601,812
|
|
|
Tenant improvements
|
|
|
68,213
|
|
|
|
69,021
|
|
|
Furniture and fixtures
|
|
|
11,660
|
|
|
|
11,536
|
|
|
Property under development
|
|
|
19,080
|
|
|
|
9,527
|
|
|
Total real estate held for investment
|
|
|
1,259,649
|
|
|
|
1,060,504
|
|
|
Accumulated depreciation and amortization
|
|
|
(75,892
|
)
|
|
|
(53,329
|
)
|
|
Investment in real estate, net
|
|
|
1,183,757
|
|
|
|
1,007,175
|
|
|
Cash and cash equivalents
|
|
|
27,288
|
|
|
|
13,705
|
|
|
Restricted cash
|
|
|
10,697
|
|
|
|
9,521
|
|
|
Accounts receivable, net
|
|
|
8,833
|
|
|
|
8,963
|
|
|
Notes receivable
|
|
|
4,000
|
|
|
|
—
|
|
|
Straight-line rent receivables
|
|
|
14,047
|
|
|
|
10,801
|
|
|
Deferred leasing costs and lease intangibles, net
|
|
|
74,389
|
|
|
|
84,131
|
|
|
Deferred finance costs, net
|
|
|
6,331
|
|
|
|
5,079
|
|
|
Interest rate contracts
|
|
|
92
|
|
|
|
164
|
|
|
Goodwill
|
|
|
8,754
|
|
|
|
8,754
|
|
|
Prepaid expenses and other assets
|
|
|
6,630
|
|
|
|
4,498
|
|
|
TOTAL ASSETS
|
|
|
$
|
1,344,818
|
|
|
|
$
|
1,152,791
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
|
|
Notes payable
|
|
|
$
|
359,454
|
|
|
|
$
|
399,871
|
|
|
Accounts payable and accrued liabilities
|
|
|
22,882
|
|
|
|
12,469
|
|
|
Below-market leases
|
|
|
28,714
|
|
|
|
22,861
|
|
|
Security deposits
|
|
|
5,974
|
|
|
|
5,651
|
|
|
Prepaid rent
|
|
|
7,143
|
|
|
|
10,795
|
|
|
TOTAL LIABILITIES
|
|
|
424,167
|
|
|
|
451,647
|
|
|
|
|
|
|
|
|
|
|
6.25% series A cumulative redeemable preferred units of the
Operating Partnership
|
|
|
12,475
|
|
|
|
12,475
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
Hudson Pacific Properties, Inc. stockholders’ equity:
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375%
series B cumulative redeemable preferred stock, $25.00 liquidation
preference, 5,800,000 shares and 3,500,000 shares outstanding at
September 30, 2012 and December 31, 2011, respectively
|
|
|
145,000
|
|
|
|
87,500
|
|
|
Common Stock, $0.01 par value 490,000,000 authorized, 47,219,875
shares and 33,840,854 shares outstanding at September 30, 2012 and
December 31, 2011, respectively
|
|
|
472
|
|
|
|
338
|
|
|
Additional paid-in capital
|
|
|
730,783
|
|
|
|
552,043
|
|
|
Accumulated other comprehensive (deficit) income
|
|
|
(1,283
|
)
|
|
|
(883
|
)
|
|
Accumulated deficit
|
|
|
(24,709
|
)
|
|
|
(13,685
|
)
|
|
Total Hudson Pacific Properties, Inc. stockholders’ equity
|
|
|
850,263
|
|
|
|
625,313
|
|
|
Non-controlling common units in the Operating Partnership
|
|
|
57,913
|
|
|
|
63,356
|
|
|
TOTAL EQUITY
|
|
|
908,176
|
|
|
|
688,669
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
|
$
|
1,344,818
|
|
|
|
$
|
1,152,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Pacific Properties, Inc.
Combined Statements of Operations
(Unaudited, in thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
|
$
|
23,551
|
|
|
|
$
|
18,950
|
|
|
|
$
|
68,522
|
|
|
|
$
|
54,285
|
|
|
Tenant recoveries
|
|
|
4,969
|
|
|
|
6,206
|
|
|
|
15,942
|
|
|
|
16,130
|
|
|
Parking and other
|
|
|
2,545
|
|
|
|
1,580
|
|
|
|
7,103
|
|
|
|
5,989
|
|
|
Total office revenues
|
|
|
31,065
|
|
|
|
26,736
|
|
|
|
91,567
|
|
|
|
76,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Media & entertainment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rental
|
|
|
6,075
|
|
|
|
5,188
|
|
|
|
17,331
|
|
|
|
16,260
|
|
|
Tenant recoveries
|
|
|
406
|
|
|
|
402
|
|
|
|
1,071
|
|
|
|
1,261
|
|
|
Other property-related revenue
|
|
|
4,476
|
|
|
|
4,579
|
|
|
|
10,797
|
|
|
|
11,092
|
|
|
Other
|
|
|
44
|
|
|
|
12
|
|
|
|
146
|
|
|
|
111
|
|
|
Total media & entertainment revenues
|
|
|
11,001
|
|
|
|
10,181
|
|
|
|
29,345
|
|
|
|
28,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
42,066
|
|
|
|
36,917
|
|
|
|
120,912
|
|
|
|
105,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office operating expenses
|
|
|
13,042
|
|
|
|
12,785
|
|
|
|
38,176
|
|
|
|
32,592
|
|
|
Media & entertainment operating expenses
|
|
|
6,934
|
|
|
|
6,123
|
|
|
|
17,993
|
|
|
|
17,073
|
|
|
General and administrative
|
|
|
4,157
|
|
|
|
2,844
|
|
|
|
12,822
|
|
|
|
9,052
|
|
|
Depreciation and amortization
|
|
|
13,582
|
|
|
|
11,036
|
|
|
|
39,422
|
|
|
|
33,023
|
|
|
Total operating expenses
|
|
|
37,715
|
|
|
|
32,788
|
|
|
|
108,413
|
|
|
|
91,740
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
4,351
|
|
|
|
4,129
|
|
|
|
12,499
|
|
|
|
13,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
4,511
|
|
|
|
4,073
|
|
|
|
13,977
|
|
|
|
13,245
|
|
|
Interest income
|
|
|
(142
|
)
|
|
|
(36
|
)
|
|
|
(149
|
)
|
|
|
(67
|
)
|
|
Acquisition-related expenses
|
|
|
455
|
|
|
|
762
|
|
|
|
815
|
|
|
|
762
|
|
|
Other expenses (income)
|
|
|
(199
|
)
|
|
|
133
|
|
|
|
(109
|
)
|
|
|
368
|
|
|
|
|
|
4,625
|
|
|
|
4,932
|
|
|
|
14,534
|
|
|
|
14,308
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(274
|
)
|
|
|
$
|
(803
|
)
|
|
|
$
|
(2,035
|
)
|
|
|
$
|
(920
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to preferred stock and units
|
|
|
(3,231
|
)
|
|
|
(2,027
|
)
|
|
|
(9,693
|
)
|
|
|
(6,081
|
)
|
|
Less: Net income attributable to restricted shares
|
|
|
(69
|
)
|
|
|
(53
|
)
|
|
|
(226
|
)
|
|
|
(177
|
)
|
|
Less: Net income attributable to non-controlling interest in
consolidated real estate entities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(803
|
)
|
|
Add: Net loss attributable to common units in the Operating
Partnership
|
|
|
179
|
|
|
|
211
|
|
|
|
704
|
|
|
|
698
|
|
|
Net loss attributable to Hudson Pacific Properties, Inc. common
shareholders
|
|
|
$
|
(3,395
|
)
|
|
|
$
|
(2,672
|
)
|
|
|
$
|
(11,250
|
)
|
|
|
$
|
(7,283
|
)
|
|
Net loss attributable to common shareholders’ per share - basic and
diluted
|
|
|
$
|
(0.07
|
)
|
|
|
$
|
(0.08
|
)
|
|
|
$
|
(0.28
|
)
|
|
|
$
|
(0.26
|
)
|
|
Weighted average shares of common stock outstanding - basic and
diluted
|
|
|
46,668,862
|
|
|
|
33,146,334
|
|
|
|
39,945,249
|
|
|
|
28,126,546
|
|
|
Dividends declared per common share
|
|
|
$
|
0.125
|
|
|
|
$
|
0.125
|
|
|
|
$
|
0.375
|
|
|
|
$
|
0.375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Pacific Properties, Inc.
Funds From Operations
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
Nine Months Ended September 30,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
Reconciliation of net loss to Funds From Operations (FFO):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
|
$
|
(274
|
)
|
|
|
$
|
(803
|
)
|
|
|
$
|
(2,035
|
)
|
|
|
$
|
(920
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate assets
|
|
|
13,582
|
|
|
|
11,036
|
|
|
|
39,422
|
|
|
|
33,023
|
|
|
Less: Net loss (income) attributable to non-controlling interest in
consolidated real estate entities
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(803
|
)
|
|
Less: Net income attributable to preferred stock and units
|
|
|
(3,231
|
)
|
|
|
(2,027
|
)
|
|
|
(9,693
|
)
|
|
|
(6,081
|
)
|
|
FFO to common shareholders and unit holders
|
|
|
$
|
10,077
|
|
|
|
$
|
8,206
|
|
|
|
$
|
27,694
|
|
|
|
$
|
25,219
|
|
|
Specified items impacting FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
455
|
|
|
|
762
|
|
|
|
815
|
|
|
|
762
|
|
|
One-time property tax expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
918
|
|
|
|
—
|
|
|
Master Halco termination revenue
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2,744
|
)
|
|
Master Halco non-cash write-off
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
716
|
|
|
FFO (excluding specified items) to common shareholders and unit
holders
|
|
|
$
|
10,532
|
|
|
|
$
|
8,968
|
|
|
|
$
|
29,427
|
|
|
|
$
|
23,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares/units outstanding - diluted
|
|
|
49,675
|
|
|
|
36,183
|
|
|
|
43,140
|
|
|
|
31,210
|
|
|
FFO per common share/unit - diluted
|
|
|
$
|
0.20
|
|
|
|
$
|
0.23
|
|
|
|
$
|
0.64
|
|
|
|
$
|
0.81
|
|
|
FFO (excluding specified items) per common share/unit - diluted
|
|
|
$
|
0.21
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.68
|
|
|
|
$
|
0.77
|
|
Investor Contact:
Hudson Pacific Properties, Inc.
Mark
Lammas
Chief Financial Officer
(310) 445-5700
or
Investor
/ Media Contact:
Addo Communications, Inc.
Lasse
Glassen
(310) 829-5400
lasseg@addocommunications.com
Source: Hudson Pacific Properties, Inc.