LOS ANGELES--(BUSINESS WIRE)--
Hudson Pacific Properties, Inc. (the “Company,” “we,” “us” or “our”)
(NYSE: HPP) today announced financial results for the first quarter
ended March 31, 2014.
Financial Results
Funds From Operations (FFO) (excluding specified items) for the three
months ended March 31, 2014 totaled $17.9 million, or $0.27 per diluted
share, compared to FFO (excluding specified items) of $14.1 million, or
$0.26 per share, a year ago. The specified items for the first quarter
of 2014 consisted of costs associated with a one-year consulting
arrangement with a former executive of $0.8 million, or $0.01 per
diluted share, and expenses associated with the acquisitions of the
Merrill Place and 3402 Pico Boulevard properties of $0.1 million, or
$0.00 per diluted share. Specified items for the first quarter of 2013
consisted of an early lease termination payment from Bank of America
relating to our 1455 Market Street property of $1.1 million (after the
write-off of non-cash items), or $0.02 per diluted share, and a property
tax reimbursement stemming from the reassessment of the Sunset Gower
media and entertainment property of $0.8 million, or $0.01 per diluted
share. FFO, including the specified items, totaled $16.9 million, or
$0.25 per diluted share, for the three months ended March 31, 2014,
compared to $16.0 million, or $0.29 per share, a year ago.
The Company reported net income attributable to common stockholders of
$1.3 million, or $0.02 per diluted share, for the three months ended
March 31, 2014, compared to net loss attributable to common stockholders
of $2.9 million, or $(0.06) per diluted share, for the three months
ended March 31, 2013.
“Our first quarter highlights included the closing of important
acquisitions and a successful primary common stock offering,” said Mr.
Victor J. Coleman, Chairman and Chief Executive Officer of Hudson
Pacific Properties, Inc. “During the quarter, we completed the
previously announced acquisition of an office and retail property known
as ‘Merrill Place’ located in downtown Seattle’s Pioneer Square
submarket for $57.7 million. This asset is a great complement to our
expanding Seattle portfolio and provides Hudson with an opportunity to
leverage our operational, leasing and development expertise to create
value through an extensive repositioning and re-development of the
property. In Southern California, we acquired 3402 Pico Boulevard
located in Santa Monica for $18.5 million. Consisting of three
contiguous parcels comprising nearly three acres, we believe this
development project could support approximately 150,000 square feet of
creative office space. To fund these acquisitions and further support
our growth objectives in 2014, we completed a primary public offering of
9.5 million shares of common stock, generating approximately $195.8
million in proceeds to the Company before transaction costs.”
Mr. Coleman continued, “First quarter leasing remained active, with the
completion of new and renewal leases totaling 29,014 square feet.
Subsequent to the end of the quarter, we signed a new lease at our 1455
Market Street property in San Francisco with Rocket Fuel, Inc., a
leading provider of artificial intelligence advertising solutions for
digital marketers. At starting rents exceeding our underwritten and
existing rents for backfilled space, we believe this long-term lease to
a high-quality tenant delivers excellent value to our stockholders.”
First Quarter Highlights
-
FFO (excluding specified items) of $17.9 million, or $0.27 per diluted
share, compared to $14.1 million, or $0.26 per share, a year ago;
-
Completed new and renewal leases totaling 29,014 square feet;
-
Stabilized office portfolio leased rate of 94.5% at March 31, 2014;
-
Completed acquisition of 179,000 square feet of an office and retail
property known as “Merrill Place” located in downtown Seattle’s
Pioneer Square submarket, for a gross purchase price of approximately
$57.7 million (before closing costs and prorations).
-
Completed acquisition of 3402 Pico Boulevard in Santa Monica,
California for $18.5 million (before closing costs and prorations).
The property consists of three contiguous parcels comprising nearly
three acres and upon redevelopment, could support approximately
150,000 square feet of creative office space.
-
Completed primary offering of 9,487,500 shares of common stock
(including the full exercise of the underwriters' option to purchase
additional shares) generating total proceeds to us of $195.8 million
(before transaction costs);
-
Declared and paid quarterly dividend of $0.125 per 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 March 31, 2014
Total revenue from continuing operations during the quarter increased
17.3% to $55.6 million from $47.4 million for the same quarter a year
ago. Total operating expenses from continuing operations increased 5.0%
to $44.4 million from $42.3 million for the same quarter a year ago. As
a result, income from operations increased 118.7% to $11.2 million for
the first quarter of 2014, compared to income from operations of $5.1
million for the same quarter a year ago. The primary reasons for the
increases in total revenue and total operating expenses are discussed
below in connection with our segment operating results.
Interest expense during the first quarter increased 16.7% to $6.5
million, compared to interest expense of $5.6 million for the same
quarter a year ago. At March 31, 2014, the Company had $827.4 million of
notes payable, compared to $931.3 million as of December 31, 2013 and
$530.0 million at March 31, 2013.
Segment Operating Results For The Three Months Ended March 31, 2014
Office Properties
Total revenue from continuing operations at the Company’s office
properties increased 26.3% to $46.1 million from $36.5 million for the
same quarter a year ago. The increase was primarily the result of a $9.2
million increase in rental revenue to $36.0 million and a $0.6 million
increase in parking and other revenue to $4.5 million, largely resulting
from the acquisition of the Pinnacle II building by our joint venture
with MDP/Worthe on June 14, 2013, our acquisition of the Seattle
portfolio on July 31, 2013, and our acquisition of the Merrill Place
property on February 12, 2014.
Office property operating expenses from continuing operations increased
20.1% to $15.9 million from $13.3 million for the same quarter a year
ago. The increase was primarily the result of the acquisitions of the
office properties described above.
At March 31, 2014, the Company’s stabilized office portfolio was 94.5%
leased. During the quarter, the Company executed 7 new and renewal
leases totaling 29,014 square feet.
Media and Entertainment Properties
Total revenue at the Company’s media and entertainment properties
decreased 12.6% to $9.5 million from $10.9 million for the same quarter
a year ago. The decrease was primarily the result of a $0.9 million
decrease in other property-related revenue to $3.6 million, primarily
resulting from lower production activity at the Company’s Sunset Gower
media and entertainment property compared to the same quarter a year ago.
Total media and entertainment operating expenses increased 7.8% to $6.0
million from $5.6 million for the same quarter a year ago. The increase
primarily reflects a property tax reimbursement occurring in the first
quarter of 2013 stemming from the reassessment of the Sunset Gower media
and entertainment property of $0.8 million.
As of March 31, 2014, the trailing 12-month occupancy for the Company’s
media and entertainment portfolio decreased to 69.1% from 74.1% for the
trailing 12-month period ended March 31, 2013.
Balance Sheet
At March 31, 2014, the Company had total assets of $2.2 billion,
including unrestricted cash and cash equivalents of $29.1 million. At
March 31, 2014, we had $250.0 million of total capacity under our
unsecured revolving credit facility, of which $40.0 million had been
drawn.
Merrill Place Acquisition
On February 12, 2014, the Company acquired an office and retail property
known as “Merrill Place” located in downtown Seattle’s Pioneer Square
submarket, directly adjacent to the Company’s First & King property. The
property was acquired in an off-market transaction for a gross purchase
price of approximately $57.7 million (before closing costs and
prorations). Merrill Place consists of four interconnected brick and
beam buildings spanning an entire city block and comprising
approximately 179,000 square feet of office and ground floor retail,
along with a 147-stall standalone parking structure. The property is
currently 93% leased with approximately 58% of the leases scheduled to
expire over the next four years. The Company intends to implement an
extensive repositioning of the property, including lobby and common area
upgrades, new tenant amenities, an elevator modernization, mechanical
and electrical upgrades. Additionally, current zoning for the property
allows for the potential development of a new office building fronting
the soon to be improved Alaskan Way waterfront. The Company has
commenced the entitlement process to allow for delivery of the new
office building by 2017.
3402 Pico Boulevard Acquisition
On February 5, 2014, the Company entered into a purchase agreement to
acquire 3402 Pico Boulevard in Santa Monica, California for $18.5
million (before closing costs and prorations). 3402 Pico Boulevard
consists of three contiguous parcels comprising nearly three acres. The
Company estimates this site could support approximately 150,000 square
feet of creative office space, including the complete refurbishment of
an existing 40,000-square-foot vacant office building. The Company’s
goal is to fully redevelop the property into a state-of-the-art creative
office campus. With the future Expo Light Rail stop at Olympic and Bundy
within walking distance, close proximity to other major transportation
thoroughfares, excellent visibility, and opportunity to deliver abundant
outdoor amenities, 3402 Pico Boulevard is ideally suited for creative
office users looking to be located in this already highly
supply-constrained market.
Offerings
On January 28, 2014, the Company completed the primary offering of
9,487,500 shares of its common stock (including 1,237,500 shares of its
common stock issued and sold pursuant to the exercise of the
underwriters’ option to purchase additional shares in full) at the
public offering price of $21.50 per share. The net proceeds to the
Company from the offering, after deducting underwriting discounts
(before other transaction costs), were approximately $195.8 million. The
Company contributed the net proceeds from the offering to its operating
partnership to fund the acquisition of Merrill Place, 3402 Pico
Boulevard, development and redevelopment activities, potential
acquisition opportunities and/or for general corporate purposes. Pending
these uses, the Company’s operating partnership used the net proceeds
from the offering to repay indebtedness outstanding under its unsecured
revolving credit facility.
Leasing Activities (Subsequent to end of first quarter)
On April 9, 2014, the Company signed a new lease at its 1455 Market
Street property in San Francisco with Rocket Fuel, Inc., a leading
provider of artificial intelligence advertising solutions for digital
marketers. This new seven-year lease encompasses 24,438 square feet of
initial occupancy, and includes an expansion for an additional 24,438
square feet, for a combined 48,876 square feet of occupancy. The initial
24,438 square feet of occupancy fills a vacant floor commencing during
the third quarter of 2014. An additional 24,438 square feet is expected
to backfill another full floor subject to the early termination of a
lease which is expected to expire in the first quarter of 2015.
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 first quarter of 2014. Both
dividends were paid on March 31, 2014 to stockholders of record on March
21, 2014.
2014 Outlook
The Company is increasing its full-year 2014 FFO guidance from the range
of $1.07 to $1.11 per diluted share (excluding specified items) to a
revised range of $1.08 to $1.12 per diluted share (excluding specified
items). The guidance reflects the Company’s FFO for the first quarter
ended March 31, 2014 of $0.27 per diluted share (excluding specified
items). The Company has designated its Tierrasanta property in San Diego
as held-for-sale in anticipation of a potential sale of that property
toward the end of this second quarter. This guidance reflects that
potential sale. In addition, this guidance reflects all acquisitions,
financings and leasing activity referenced in this press release and all
previously announced acquisitions, dispositions, financings and leasing
activity, including the January 2014 common stock offering. The costs
associated with the one-year consulting arrangement with Howard Stern
have been excluded from the guidance estimate as non-recurring costs. As
is always the case, the Company’s guidance does not reflect or attempt
to anticipate any impact to FFO from speculative acquisitions. The
full-year 2014 FFO estimate reflects management’s view of current and
future market conditions, including assumptions with respect to rental
rates, occupancy levels and the earnings impact of events referenced in
this release, but otherwise 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 first quarter
2014 results may be found in the Investor Relations
section of the Company’s Web site at www.hudsonpacificproperties.com.
This supplemental information provides additional detail on items such
as property occupancy, financial performance by property and debt
maturity schedules.
Conference Call
The Company will conduct a conference call to discuss the results at
1:30 p.m. PT / 4:30 p.m. ET on May 8, 2014. 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). International callers
should dial (201) 689-8560. The call will also be broadcast live over
the Internet and can be accessed on the Investor Relations section of
the Company’s Web site at www.hudsonpacificproperties.com.
A replay of the call will also be available for 90 days on the Company’s
Web site. For those unable to participate during the live broadcast, a
replay will be available beginning May 8, at 4:30 p.m. PT / 7:30 p.m.
ET, through May 15, at 8:59 p.m. PT / 11:59 p.m. ET. To access the
replay, dial (877) 870-5176 and use passcode 13580228. 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 the
Pacific Northwest and 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 and Seattle. The Company’s portfolio currently consists of
approximately 6.4 million square feet, not including undeveloped land
that the Company believes can support an additional 1.8 million square
feet. The Company has elected to be taxed 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.
Forward-Looking Statements
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” or
“potential” or the negative of these words and phrases or similar words
or phrases that are predictions of or indicate future events or trends
and that do not relate solely to historical matters. Forward-looking
statements involve known and unknown risks, uncertainties, assumptions
and contingencies, many of which are beyond the Company’s control that
may cause actual results to differ significantly from those expressed in
any forward-looking statement. All forward-looking statements reflect
the Company’s good faith beliefs, assumptions and expectations, but they
are not guarantees of future performance. Furthermore, the Company
disclaims any obligation to publicly update or revise any
forward-looking statement to reflect changes in underlying assumptions
or factors, of new information, data or methods, future events or other
changes. For a further discussion of these and other factors that could
cause the Company’s future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors” in
the Company’s Annual Report on Form 10-K for the year ended December 31,
2013 filed with the Securities and Exchange Commission on March 3, 2014,
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 Sheet
|
|
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
ASSETS
|
|
(Unaudited)
|
|
Audited
|
|
REAL ESTATE ASSETS
|
|
|
|
|
|
Land
|
|
$
|
622,880
|
|
|
$
|
578,787
|
|
|
Building and improvements
|
|
|
1,292,169
|
|
|
|
1,250,752
|
|
|
Tenant improvements
|
|
|
112,848
|
|
|
|
107,628
|
|
|
Furniture and fixtures
|
|
|
14,491
|
|
|
|
14,396
|
|
|
Property under development
|
|
|
78,040
|
|
|
|
70,128
|
|
|
Total real estate held for investment
|
|
|
2,120,428
|
|
|
|
2,021,691
|
|
|
Accumulated depreciation and amortization
|
|
|
(126,483
|
)
|
|
|
(114,866
|
)
|
|
Investment in real estate, net
|
|
|
1,993,945
|
|
|
|
1,906,825
|
|
|
Cash and cash equivalents
|
|
|
29,063
|
|
|
|
30,356
|
|
|
Restricted cash
|
|
|
17,714
|
|
|
|
16,750
|
|
|
Accounts receivable, net
|
|
|
6,673
|
|
|
|
8,909
|
|
|
Notes receivable
|
|
|
—
|
|
|
|
—
|
|
|
Straight-line rent receivables
|
|
|
24,026
|
|
|
|
21,538
|
|
|
Deferred leasing costs and lease intangibles, net
|
|
|
110,042
|
|
|
|
111,398
|
|
|
Deferred finance costs, net
|
|
|
8,028
|
|
|
|
8,582
|
|
|
Interest rate contracts
|
|
|
33
|
|
|
|
192
|
|
|
Goodwill
|
|
|
8,754
|
|
|
|
8,754
|
|
|
Prepaid expenses and other assets
|
|
|
5,143
|
|
|
|
5,170
|
|
|
Assets associated with real estate held for sale
|
|
|
12,768
|
|
|
|
12,801
|
|
|
TOTAL ASSETS
|
|
$
|
2,216,189
|
|
|
$
|
2,131,275
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
|
Notes payable
|
|
$
|
827,438
|
|
|
$
|
931,308
|
|
|
Accounts payable and accrued liabilities
|
|
|
22,545
|
|
|
|
27,490
|
|
|
Below-market leases, net
|
|
|
46,853
|
|
|
|
45,439
|
|
|
Security deposits
|
|
|
6,147
|
|
|
|
5,941
|
|
|
Prepaid rent
|
|
|
10,565
|
|
|
|
7,623
|
|
|
Interest rate contracts
|
|
|
475
|
|
|
|
—
|
|
|
Obligations associated with real estate held for sale
|
|
|
170
|
|
|
|
133
|
|
|
TOTAL LIABILITIES
|
|
|
914,193
|
|
|
|
1,017,934
|
|
|
|
|
|
|
|
|
6.25% series A cumulative redeemable preferred units of the
Operating Partnership
|
|
|
10,177
|
|
|
|
10,475
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Hudson Pacific Properties, Inc. stockholders’ equity:
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375%
series B cumulative redeemable preferred stock, $25.00 liquidation
preference, 5,800,000 shares outstanding at March 31, 2014 and
December 31, 2013, respectively
|
|
|
145,000
|
|
|
|
145,000
|
|
|
Common stock, $0.01 par value, 490,000,000 authorized, 66,795,071
shares and 57,230,199 shares outstanding at March 31, 2014 and
December 31, 2013, respectively
|
|
|
668
|
|
|
|
572
|
|
|
Additional paid-in capital
|
|
|
1,093,774
|
|
|
|
903,984
|
|
|
Accumulated other comprehensive loss
|
|
|
(1,529
|
)
|
|
|
(997
|
)
|
|
Accumulated deficit
|
|
|
(43,784
|
)
|
|
|
(45,113
|
)
|
|
Total Hudson Pacific Properties, Inc. stockholders’ equity
|
|
|
1,194,129
|
|
|
|
1,003,446
|
|
|
Non-controlling interest—members in Consolidated Entities
|
|
|
44,224
|
|
|
|
45,683
|
|
|
Non-controlling common units in the Operating Partnership
|
|
|
53,466
|
|
|
|
53,737
|
|
|
TOTAL EQUITY
|
|
|
1,291,819
|
|
|
|
1,102,866
|
|
|
TOTAL LIABILITIES AND EQUITY
|
|
$
|
2,216,189
|
|
|
$
|
2,131,275
|
|
|
|
|
Hudson Pacific Properties, Inc.
|
|
Combined Statements of Operations
|
|
(Unaudited, in thousands, except share and per share data)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Revenues
|
|
|
|
|
|
Office
|
|
|
|
|
|
Rental
|
|
$
|
36,010
|
|
|
$
|
26,796
|
|
|
Tenant recoveries
|
|
|
5,571
|
|
|
|
5,749
|
|
|
Parking and other
|
|
|
4,479
|
|
|
|
3,927
|
|
|
Total office revenues
|
|
|
46,060
|
|
|
|
36,472
|
|
|
|
|
|
|
|
|
Media & entertainment
|
|
|
|
|
|
Rental
|
|
|
5,449
|
|
|
|
5,768
|
|
|
Tenant recoveries
|
|
|
320
|
|
|
|
418
|
|
|
Other property-related revenue
|
|
|
3,634
|
|
|
|
4,490
|
|
|
Other
|
|
|
133
|
|
|
|
236
|
|
|
Total media & entertainment revenues
|
|
|
9,536
|
|
|
|
10,912
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
55,596
|
|
|
|
47,384
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
Office operating expenses
|
|
|
15,927
|
|
|
|
13,265
|
|
|
Media & entertainment operating expenses
|
|
|
6,005
|
|
|
|
5,568
|
|
|
General and administrative
|
|
|
5,776
|
|
|
|
4,989
|
|
|
Depreciation and amortization
|
|
|
16,668
|
|
|
|
18,431
|
|
|
Total operating expenses
|
|
|
44,376
|
|
|
|
42,253
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
11,220
|
|
|
|
5,131
|
|
|
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
Interest expense
|
|
|
6,524
|
|
|
|
5,592
|
|
|
Interest income
|
|
|
(9
|
)
|
|
|
(150
|
)
|
|
Acquisition-related expenses
|
|
|
105
|
|
|
|
—
|
|
|
Other expenses
|
|
|
1
|
|
|
|
45
|
|
|
|
|
|
6,621
|
|
|
|
5,487
|
|
|
Income (loss) from continuing operations
|
|
|
4,599
|
|
|
|
(356
|
)
|
|
|
|
|
|
|
|
(Loss) Income income from discontinued operations
|
|
|
(66
|
)
|
|
|
673
|
|
|
Impairment loss from discontinued operations
|
|
|
—
|
|
|
|
—
|
|
|
Net (loss) income from discontinued operations
|
|
|
(66
|
)
|
|
|
673
|
|
|
Net income
|
|
$
|
4,533
|
|
|
$
|
317
|
|
|
|
|
|
|
|
|
Net income attributable to preferred stock and units
|
|
|
(3,200
|
)
|
|
|
(3,231
|
)
|
|
Net income attributable to restricted shares
|
|
|
(69
|
)
|
|
|
(79
|
)
|
|
Net loss (income) attributable to non-controlling interest in
Consolidated Entities
|
|
|
43
|
|
|
|
(10
|
)
|
|
Net (income) loss attributable to common units in the Operating
Partnership
|
|
|
(47
|
)
|
|
|
131
|
|
|
Net income (loss) attributable to Hudson Pacific Properties, Inc.
common stockholders
|
|
$
|
1,260
|
|
|
$
|
(2,872
|
)
|
|
Basic and diluted per share amounts:
|
|
|
|
|
|
Net income (loss) from continuing operations attributable to common
stockholders
|
|
$
|
0.02
|
|
|
$
|
(0.07
|
)
|
|
Net income from discontinued operations
|
|
|
—
|
|
|
|
0.01
|
|
|
Net income (loss) attributable to common stockholders’ per
share—basic and diluted
|
|
$
|
0.02
|
|
|
$
|
(0.06
|
)
|
|
Weighted average shares of common stock outstanding—basic and diluted
|
|
|
63,625,751
|
|
|
|
52,184,280
|
|
|
Dividends declared per share of common stock
|
|
$
|
0.125
|
|
|
$
|
0.125
|
|
|
|
|
Hudson Pacific Properties, Inc.
|
|
Funds From Operations
|
|
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
|
2014
|
|
|
|
2013
|
|
|
Reconciliation of net loss to Funds From Operations (FFO):
|
|
|
|
|
|
Net income
|
|
$
|
4,533
|
|
|
$
|
317
|
|
|
Adjustments:
|
|
|
|
|
|
Depreciation and amortization of real estate assets
|
|
|
16,668
|
|
|
|
18,431
|
|
|
Depreciation and amortization—discontinued operations
|
|
|
—
|
|
|
|
474
|
|
|
Impairment loss
|
|
|
—
|
|
|
|
—
|
|
|
FFO attributable to non-controlling interest in Consolidated Entities
|
|
|
(1,091
|
)
|
|
|
(35
|
)
|
|
Net income attributable to preferred stock and units
|
|
|
(3,200
|
)
|
|
|
(3,231
|
)
|
|
FFO to common stockholders and unit holders
|
|
$
|
16,910
|
|
|
$
|
15,956
|
|
|
Specified items impacting FFO:
|
|
|
|
|
|
Acquisition-related expenses
|
|
|
105
|
|
|
|
—
|
|
|
One-time consulting costs
|
|
|
835
|
|
|
|
—
|
|
|
One-time property tax savings
|
|
|
—
|
|
|
|
(797
|
)
|
|
One-time lease termination revenue
|
|
|
—
|
|
|
|
(1,082
|
)
|
|
FFO (excluding specified items) to common stockholders and unit
holders
|
|
$
|
17,850
|
|
|
$
|
14,077
|
|
|
|
|
|
|
|
|
Weighted average common stock/units outstanding—diluted
|
|
|
66,558
|
|
|
|
55,196
|
|
|
FFO per common stock/unit—diluted
|
|
$
|
0.25
|
|
|
$
|
0.29
|
|
|
FFO (excluding specified items) per common stock/unit—diluted
|
|
$
|
0.27
|
|
|
$
|
0.26
|
|
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.