LOS ANGELES--(BUSINESS WIRE)--
Hudson Pacific Properties, Inc.(the “Company,” “we,” “us” or “our”)
(NYSE: HPP) today announced financial results for the fourth quarter
ended December 31, 2013.
Financial Results
Funds From Operations (FFO) (excluding specified items) for the three
months ended December 31, 2013 totaled $15.6 million, or $0.26 per
diluted share, compared to FFO (excluding specified items) of $11.6
million, or $0.23 per share, a year ago. The specified items for the
fourth quarter of 2013 consisted of expenses associated with the
acquisition of our office portfolio in Seattle, Washington of $0.5
million, or $0.01 per diluted share, and an early lease termination
payment from Bank of America relating to the Company’s 1455 Market
Street property of $0.8 million, or $0.01 per diluted share. Specified
items for the fourth quarter of 2012 consisted of expenses associated
with the acquisition of The Pinnacle office property in Burbank,
California of $0.2 million, or $0.00 per diluted share. FFO, including
the specified items, totaled $15.9 million, or $0.27 per diluted share,
for the three months ended December 31, 2013, compared to $11.4 million,
or $0.23 per share, a year ago.
The Company reported a net loss attributable to common stockholders of
$0.1 million, or $0.00 per diluted share, for the three months ended
December 31, 2013, compared to net loss attributable to common
stockholders of $5.9 million, or $(0.13) per diluted share, for the
three months ended December 31, 2012.
“The fourth quarter was an extremely productive period for Hudson that
included significant new long-term leases and groundwork for a major
acquisition announced subsequent to the end of the quarter,” said Mr.
Victor J. Coleman, Chairman and Chief Executive Officer of Hudson
Pacific Properties, Inc. “Leasing remained active with the completion of
new and renewal leases totaling 416,948 square feet during the quarter.
Highlights included a new 15-year lease with Riot Games, Inc. for our
entire 284,037 square-foot Element LA campus located in West Los
Angeles, California. We also entered a new 12-year lease with Deluxe
Entertainment Services Inc. for our entire 63,376 square-foot 3401
Exposition Blvd. property located in Santa Monica, California. These new
leases represent long-term commitments from leading technology companies
on terms well above our original expectations for these properties. Our
success in attracting exceptional tenants like Riot Games and Deluxe
continues to unlock our portfolio’s value potential.”
Mr. Coleman continued, “Subsequent to the end of the quarter, we
announced the acquisition of an office and retail property known as
'Merrill Place' located in downtown Seattle’s Pioneer Square submarket,
directly adjacent to Hudson’s First & King property. This acquisition
represents an excellent opportunity to expand our footprint in one of
the fastest growing submarkets for technology tenants in Downtown
Seattle and leverage our operational, leasing and development expertise
to create value for our shareholders.”
Fourth Quarter Highlights
-
FFO (excluding specified items) of $15.6 million, or $0.26 per diluted
share, compared to $11.6 million, or $0.23 per share, a year ago;
-
Completed new and renewal leases totaling 416,948 square feet;
-
Stabilized office portfolio leased rate of 95.4% at December 31, 2013;
-
Obtained a four-year loan secured by the Element LA property, which
upon full disbursement, will total $65.5 million, to fund costs
associated with the renovation and lease-up of this property;
-
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 December 31,
2013
Total revenue from continuing operations during the quarter increased
30.4% to $57.4 million from $44.0 million for the same quarter a year
ago. Total operating expenses from continuing operations increased 12.3%
to $47.0 million from $41.9 million for the same quarter a year ago. As
a result, income from operations increased 378.5% to $10.4 million for
the fourth quarter of 2013, compared to income from operations of $2.2
million for the same quarter a year ago. The primary reasons for the
increases in total revenue and total operating expenses are discussed
below in connection with our segment operating results.
Interest expense during the fourth quarter increased 33.4% to $6.8
million, compared to interest expense of $5.1 million for the same
quarter a year ago. At December 31, 2013, the Company had $931.3 million
of notes payable, compared to $891.2 million as of September 30, 2013
and $582.1 million at December 31, 2012.
Segment Operating Results For The Three Months Ended December 31, 2013
Office Properties
Total revenue from continuing operations at the Company’s office
properties increased 43.4% to $47.7 million from $33.2 million for the
same quarter a year ago. The increase was primarily the result of a
$10.9 million increase in rental revenue to $35.2 million, a $2.1
million increase in tenant recoveries to $8.3 million, and a $1.5
million increase in parking and other revenue to $4.3 million, largely
resulting from the acquisition of the Pinnacle I and Pinnacle II
buildings by our joint venture with MDP/Worthe on November 8, 2012 and
June 14, 2013, respectively, and our acquisition of the Seattle
portfolio on July 31, 2013. The parking and other revenue for the fourth
quarter of 2013 includes an early lease termination payment from Bank of
America relating to the Company’s 1455 Market Street property of $0.8
million.
Office property operating expenses from continuing operations increased
31.6% to $19.2 million from $14.6 million for the same quarter a year
ago. The increase was primarily the result of the acquisitions of the
office properties described above.
At December 31, 2013, the Company’s stabilized office portfolio was
95.4% leased. During the quarter, the Company executed 19 new and
renewal leases totaling 416,948 square feet.
Media and Entertainment Properties
Total revenue at the Company’s media and entertainment properties
decreased 9.8% to $9.7 million from $10.8 million for the same quarter a
year ago. The decrease was primarily the result of a $0.7 million
decrease in other property-related revenue to $3.3 million, resulting
from lower production activity compared to the same quarter a year ago
and a $0.4 million decrease in rental revenue to $5.8 million, resulting
from lower occupancy compared to the same quarter a year ago.
Total media and entertainment operating expenses decreased 5.2% to $6.0
million from $6.3 million for the same quarter a year ago, primarily
resulting from lower production activity compared to the same quarter a
year ago.
As of December 31, 2013, the trailing 12-month occupancy for the
Company’s media and entertainment portfolio decreased to 69.9% from
73.7% for the trailing 12-month period ended December 31, 2012.
Combined Operating Results For The Twelve Months Ended December 31,
2013
For the twelve months of 2013, total revenue from continuing operations
was $205.6 million, an increase of 28.1% from $160.5 million in the same
period the prior year. Total operating expenses from continuing
operations were $177.6 million, compared to $146.2 million in the same
period a year ago. As a result, income from operations increased 96.0%
to $28.0 million for the twelve months of 2013, compared to income from
operations of $14.3 million for the same period a year ago. The revenue
for the twelve months of 2013 includes early lease termination payments
from Bank of America relating to the Company’s 1455 Market Street
property of $1.6 million (after the write-off of non-cash items), with
no comparable activity for the same period a year ago. Operating
expenses for the twelve months of 2013 include a property tax
reimbursement resulting from the reassessment of the Sunset Gower media
and entertainment property of $0.8 million, compared to a supplemental
property tax expense associated with our Technicolor property in the
twelve months of 2012 of $0.9 million. The Company also had $1.4 million
of acquisition-related expense during the twelve months of 2013,
compared to $1.1 million of acquisition-related expense during the
twelve months of 2012. Interest expense during the full year of 2013
increased 33.6% to $25.5 million from $19.1 million in the same period
of 2012, primarily due to interest expenses for a full twelve months on
the indebtedness associated with our First Financial and 10950
Washington properties, the increase in indebtedness associated with our
275 Brannan property financing on October 5, 2012, our 901 Market
property financing on October 29, 2012, the indebtedness associated with
the Pinnacle I and Pinnacle II buildings acquired on November 8, 2012
and June 14, 2013, respectively, and the indebtedness associated with
the acquisition of the Seattle portfolio.
Balance Sheet
At December 31, 2013, the Company had total assets of $2.1 billion,
including unrestricted cash and cash equivalents of $30.4 million. At
December 31, 2013, we had $250.0 million of total capacity under our
unsecured revolving credit facility, of which $155.0 million had been
drawn.
Financings
On October 18, 2013, the Company closed a four-year loan with U.S. Bank,
National Association, secured by the Company’s Element LA property,
which upon full disbursement, will total $65.5 million. The loan bears
interest at LIBOR plus 195 basis points and will mature on November 1,
2017, provided that the Company may extend such maturity for up to two
one-year periods, subject to satisfaction of certain conditions.
Proceeds from the loan are expected to be used to fund site-work,
parking garage, base building, tenant improvement, and leasing
commission costs associated with the renovation and lease-up of the
property.
On November 1, 2013, the Company repaid a $33.7 million loan secured by
the Company’s 625 Second Street property. That loan bore interest at a
fixed rate of 5.85% and was scheduled to mature February 1, 2014. The
repayment was made with proceeds from a draw under the Company’s
unsecured revolving credit facility.
Leasing Activities
On October 22, 2013, the Company entered a new 12-year lease with Deluxe
Entertainment Services Inc., a leading provider of services and
technologies for the global digital media and entertainment industry,
for its entire 63,376 square-foot 3401 Exposition Blvd. property located
in Santa Monica, California. Commencement of the lease with Deluxe is
scheduled for the third quarter 2014.
On November 4, 2013, the Company entered a new 15-year lease with Riot
Games, Inc., a developer and publisher of premium, competitive online
games, for the Company’s entire 284,037 square-foot Element LA campus
located in West Los Angeles, California. The property is currently
undergoing renovation and redevelopment. Commencement of the lease with
Riot Games is scheduled for the second quarter of 2015.
Offerings (Subsequent to end of fourth quarter)
On January 28, 2014, the Company completed the public 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 from the
offering, after deducting underwriting discounts (before other
transaction costs), were approximately $195.8 million. The Company
contributed the net proceeds from this offering to its operating
partnership to fund the acquisition of Merrill Place, development and
redevelopment activities, potential acquisition opportunities and/or for
general corporate purposes. Pending these applications, the Company’s
operating partnership used the net proceeds from the offering to repay
indebtedness outstanding under its unsecured revolving credit facility.
Acquisitions (Subsequent to end of fourth quarter)
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 52% 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 plans to
commence the entitlement process immediately to allow for delivery of
the new office building by 2017.
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 between 140,000 to 180,000
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. Subject to satisfaction
of customary closing conditions, the Company anticipates closing this
acquisition by the end of February 2014.
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 fourth quarter of 2013. Both
dividends were paid on December 30, 2013 to stockholders of record on
December 20, 2013.
2014 Outlook
The Company is providing full-year 2014 FFO guidance in the range of
$1.07 to $1.11 per diluted share (excluding specified items). This
guidance reflects the 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
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 fourth
quarter 2013 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 February 26, 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) and use conference ID
13574631. 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.
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 February 26, 2014, at 4:30 p.m. PT /
7:30 p.m. ET, through March 5, 2014, at 8:59 p.m. PT / 11:59 p.m. ET. To
access the replay, dial (877) 870-5176 and use passcode 13574631.
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 6.2 million square feet, not including undeveloped land
that the Company believes can support an additional 1.6 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. 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,
2012 filed with the Securities and Exchange Commission on March 14,
2013, and other risks described in documents subsequently filed by the
Company from time to time with the Securities and Exchange Commission.
|
Hudson Pacific Properties, Inc.
Consolidated Balance Sheet
(In thousands, except share data)
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
ASSETS
|
(Unaudited)
|
|
Audited
|
|
REAL ESTATE ASSETS
|
|
|
|
|
Land
|
$
|
581,842
|
|
|
$
|
478,273
|
|
|
Building and improvements
|
1,260,161
|
|
|
831,791
|
|
|
Tenant improvements
|
108,802
|
|
|
75,094
|
|
|
Furniture and fixtures
|
14,396
|
|
|
11,545
|
|
|
Property under development
|
70,129
|
|
|
23,961
|
|
|
Total real estate held for investment
|
2,035,330
|
|
|
1,420,664
|
|
|
Accumulated depreciation and amortization
|
(116,342
|
)
|
|
(80,303
|
)
|
|
Investment in real estate, net
|
1,918,988
|
|
|
1,340,361
|
|
|
Cash and cash equivalents
|
30,356
|
|
|
18,904
|
|
|
Restricted cash
|
16,750
|
|
|
14,322
|
|
|
Accounts receivable, net
|
8,253
|
|
|
12,167
|
|
|
Notes receivable
|
—
|
|
|
4,000
|
|
|
Straight-line rent receivables
|
22,030
|
|
|
12,732
|
|
|
Deferred leasing costs and lease intangibles, net
|
112,204
|
|
|
81,010
|
|
|
Deferred finance costs, net
|
8,577
|
|
|
8,175
|
|
|
Interest rate contracts
|
192
|
|
|
71
|
|
|
Goodwill
|
8,754
|
|
|
8,754
|
|
|
Prepaid expenses and other assets
|
5,170
|
|
|
4,588
|
|
|
Assets associated with real estate held for sale
|
—
|
|
|
54,608
|
|
|
TOTAL ASSETS
|
$
|
2,131,274
|
|
|
$
|
1,559,692
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Notes payable
|
$
|
931,308
|
|
|
$
|
582,085
|
|
|
Accounts payable and accrued liabilities
|
27,511
|
|
|
18,578
|
|
|
Below-market leases, net
|
45,441
|
|
|
31,560
|
|
|
Security deposits
|
6,022
|
|
|
5,291
|
|
|
Prepaid rent
|
7,651
|
|
|
11,276
|
|
|
Obligations associated with real estate held for sale
|
—
|
|
|
1,205
|
|
|
TOTAL LIABILITIES
|
1,017,933
|
|
|
649,995
|
|
|
|
|
|
|
|
6.25% series A cumulative redeemable preferred units of the
Operating Partnership
|
10,475
|
|
|
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 outstanding at December 31, 2013 and
December 31, 2012, respectively
|
145,000
|
|
|
145,000
|
|
|
Common stock, $0.01 par value, 490,000,000 authorized, 57,230,199
shares and 47,496,732 shares outstanding at December 31, 2013 and
December 31, 2012, respectively
|
572
|
|
|
475
|
|
|
Additional paid-in capital
|
903,984
|
|
|
726,605
|
|
|
Accumulated other comprehensive loss
|
(997
|
)
|
|
(1,287
|
)
|
|
Accumulated deficit
|
(45,113
|
)
|
|
(30,580
|
)
|
|
Total Hudson Pacific Properties, Inc. stockholders’ equity
|
1,003,446
|
|
|
840,213
|
|
|
Non-controlling interest—members in Consolidated Entities
|
45,683
|
|
|
1,460
|
|
|
Non-controlling common units in the Operating Partnership
|
53,737
|
|
|
55,549
|
|
|
TOTAL EQUITY
|
1,102,866
|
|
|
897,222
|
|
|
TOTAL LIABILITIES AND EQUITY
|
$
|
2,131,274
|
|
|
$
|
1,559,692
|
|
|
Hudson Pacific Properties, Inc.
Combined Statements of Operations
(Unaudited, in thousands, except share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Revenues
|
|
|
|
|
|
|
|
|
Office
|
|
|
|
|
|
|
|
|
Rental
|
$
|
35,174
|
|
|
$
|
24,298
|
|
|
$
|
124,839
|
|
|
$
|
88,459
|
|
|
Tenant recoveries
|
8,253
|
|
|
6,173
|
|
|
25,870
|
|
|
22,029
|
|
|
Parking and other
|
4,260
|
|
|
2,778
|
|
|
14,732
|
|
|
9,840
|
|
|
Total office revenues
|
47,687
|
|
|
33,249
|
|
|
165,441
|
|
|
120,328
|
|
|
|
|
|
|
|
|
|
|
|
Media & entertainment
|
|
|
|
|
|
|
|
|
Rental
|
5,841
|
|
|
6,267
|
|
|
23,003
|
|
|
23,598
|
|
|
Tenant recoveries
|
566
|
|
|
527
|
|
|
1,807
|
|
|
1,598
|
|
|
Other property-related revenue
|
3,267
|
|
|
3,936
|
|
|
15,072
|
|
|
14,733
|
|
|
Other
|
56
|
|
|
58
|
|
|
235
|
|
|
204
|
|
|
Total media & entertainment revenues
|
9,730
|
|
|
10,788
|
|
|
40,117
|
|
|
40,133
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
57,417
|
|
|
44,037
|
|
|
205,558
|
|
|
160,461
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
Office operating expenses
|
19,243
|
|
|
14,622
|
|
|
63,434
|
|
|
50,599
|
|
|
Media & entertainment operating expenses
|
6,016
|
|
|
6,347
|
|
|
24,149
|
|
|
24,340
|
|
|
General and administrative
|
4,757
|
|
|
3,749
|
|
|
19,952
|
|
|
16,497
|
|
|
Depreciation and amortization
|
16,994
|
|
|
17,144
|
|
|
70,063
|
|
|
54,758
|
|
|
Total operating expenses
|
47,010
|
|
|
41,862
|
|
|
177,598
|
|
|
146,194
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
10,407
|
|
|
2,175
|
|
|
27,960
|
|
|
14,267
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
Interest expense
|
6,797
|
|
|
5,094
|
|
|
25,470
|
|
|
19,071
|
|
|
Interest income
|
(10
|
)
|
|
(157
|
)
|
|
(272
|
)
|
|
(306
|
)
|
|
Acquisition-related expenses
|
454
|
|
|
236
|
|
|
1,446
|
|
|
1,051
|
|
|
Other income
|
(140
|
)
|
|
(57
|
)
|
|
(99
|
)
|
|
(92
|
)
|
|
|
7,101
|
|
|
5,116
|
|
|
26,545
|
|
|
19,724
|
|
|
Income (loss) from continuing operations
|
3,306
|
|
|
(2,941
|
)
|
|
1,415
|
|
|
(5,457
|
)
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from discontinued operations
|
(37
|
)
|
|
(30
|
)
|
|
1,571
|
|
|
451
|
|
|
Impairment loss from discontinued operations
|
—
|
|
|
—
|
|
|
(5,580
|
)
|
|
—
|
|
|
Net (loss) income from discontinued operations
|
(37
|
)
|
|
(30
|
)
|
|
(4,009
|
)
|
|
451
|
|
|
Net income (loss)
|
$
|
3,269
|
|
|
$
|
(2,971
|
)
|
|
$
|
(2,594
|
)
|
|
$
|
(5,006
|
)
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to preferred stock and units
|
(3,200
|
)
|
|
(3,231
|
)
|
|
(12,893
|
)
|
|
(12,924
|
)
|
|
Net income attributable to restricted shares
|
(71
|
)
|
|
(69
|
)
|
|
(300
|
)
|
|
(295
|
)
|
|
Net (income) loss attributable to non-controlling interest in
Consolidated Entities
|
(78
|
)
|
|
21
|
|
|
321
|
|
|
21
|
|
|
Net (income) loss attributable to common units in the Operating
Partnership
|
(3
|
)
|
|
310
|
|
|
633
|
|
|
1,014
|
|
|
Net loss attributable to Hudson Pacific Properties, Inc. common
stockholders
|
$
|
(83
|
)
|
|
$
|
(5,940
|
)
|
|
$
|
(14,833
|
)
|
|
$
|
(17,190
|
)
|
|
Basic and diluted per share amounts:
|
|
|
|
|
|
|
|
|
Net loss from continuing operations attributable to common
stockholders
|
$
|
—
|
|
|
$
|
(0.13
|
)
|
|
$
|
(0.20
|
)
|
|
$
|
(0.42
|
)
|
|
Net (loss) income from discontinued operations
|
—
|
|
|
—
|
|
|
(0.07
|
)
|
|
0.01
|
|
|
Net loss attributable to common stockholders’ per share—basic and
diluted
|
$
|
—
|
|
|
$
|
(0.13
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.41
|
)
|
|
Weighted average shares of common stock outstanding—basic and diluted
|
56,271,285
|
|
|
46,690,196
|
|
|
55,182,647
|
|
|
41,640,691
|
|
|
Dividends declared per share of common stock
|
$
|
0.125
|
|
|
$
|
0.125
|
|
|
$
|
0.500
|
|
|
$
|
0.500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Pacific Properties, Inc.
Funds From Operations
(Unaudited, in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Twelve Months Ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
Reconciliation of net loss to Funds From Operations (FFO):
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
3,269
|
|
|
$
|
(2,971
|
)
|
|
$
|
(2,594
|
)
|
|
$
|
(5,006
|
)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Depreciation and amortization of real estate assets
|
16,994
|
|
|
17,144
|
|
|
70,063
|
|
|
54,758
|
|
|
Depreciation and amortization—discontinued operations
|
—
|
|
|
458
|
|
|
789
|
|
|
2,266
|
|
|
Impairment loss
|
—
|
|
|
—
|
|
|
5,580
|
|
|
—
|
|
|
FFO attributable to non-controlling interest in Consolidated Entities
|
(1,132
|
)
|
|
(17
|
)
|
|
(2,243
|
)
|
|
(17
|
)
|
|
Net income attributable to preferred stock and units
|
(3,200
|
)
|
|
(3,231
|
)
|
|
(12,893
|
)
|
|
(12,924
|
)
|
|
FFO to common stockholders and unit holders
|
$
|
15,931
|
|
|
$
|
11,383
|
|
|
$
|
58,702
|
|
|
$
|
39,077
|
|
|
Specified items impacting FFO:
|
|
|
|
|
|
|
|
|
Acquisition-related expenses
|
454
|
|
|
236
|
|
|
1,446
|
|
|
1,051
|
|
|
One-time property tax expenses/(savings)
|
—
|
|
|
—
|
|
|
(797
|
)
|
|
918
|
|
|
Lease termination revenue
|
(753
|
)
|
|
—
|
|
|
(1,591
|
)
|
|
—
|
|
|
FFO (excluding specified items) to common stockholders and unit
holders
|
$
|
15,632
|
|
|
$
|
11,619
|
|
|
$
|
57,760
|
|
|
$
|
41,046
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common stock/units outstanding—diluted
|
59,220
|
|
|
49,679
|
|
|
58,165
|
|
|
44,693
|
|
|
FFO per common stock/unit—diluted
|
$
|
0.27
|
|
|
$
|
0.23
|
|
|
$
|
1.01
|
|
|
$
|
0.87
|
|
|
FFO (excluding specified items) per common stock/unit—diluted
|
$
|
0.26
|
|
|
$
|
0.23
|
|
|
$
|
0.99
|
|
|
$
|
0.92
|
|
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.