LOS ANGELES--(BUSINESS WIRE)--
Hudson Pacific Properties, Inc. (NYSE: HPP) today reaffirmed its
full-year 2018 FFO guidance of $1.83 to $1.89 per diluted share,
excluding specified items.
As noted with respect to the previously stated guidance, specified items
for full-year 2018 FFO guidance consist of transaction-related expenses
of $0.1 million, the write-off of original issuance costs (i.e.,
deferred financing costs) of $0.4 million associated with the recast of
the Company’s unsecured revolving credit facility and 5- and 7-year term
loan facilities, and unrealized gains from changes in fair value on
non-real estate investments of $0.9 million.
The full-year 2018 FFO estimates also 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 press release, but otherwise excludes any impact from
future unannounced or speculative acquisitions, dispositions, debt
financings or repayments, recapitalizations, capital markets activity or
similar matters. There can be no assurance that actual results will not
differ materially from this estimate.
Below are some of the assumptions the Company used in providing this
guidance (dollars in thousands):
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Full Year 2018
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Metric
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Low
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High
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Growth in Same-Store Office property cash NOI(1)(2)(3) |
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4.0%
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5.0%
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Growth in Same-Store Studio property cash NOI(1)(2) |
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10.0%
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11.0%
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GAAP non-cash revenue (straight-line rent and above/below-market
rents)(4) |
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$42,000
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$52,000
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GAAP non-cash expense (above/below-market ground rent)
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$(2,900)
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$(2,900)
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General and administrative expenses(5) |
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$(58,000)
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$(63,000)
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Interest expense, net(6) |
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$(82,500)
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$(85,500)
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FFO attributable to non-controlling interests
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$(20,000)
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$(24,000)
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Weighted average common stock/units outstanding—diluted(7) |
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157,150,000
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158,150,000
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(1)
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Same-store is defined as the 29 office properties or two studio
properties, as applicable, owned and included in the Company’s
stabilized portfolio as of January 1, 2017, and anticipated to still
be owned and included in the stabilized portfolio through December
31, 2018.
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(2)
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Please see non-GAAP information below for a definition of cash NOI.
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(3)
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This estimate excludes approximately $4.2 million of material
one-time tenant improvement cost reimbursements received in 2017,
which were likewise excluded from prior year (2017) guidance for
purposes of same-store office property cash NOI growth estimates.
Please see the Same-Store Analysis in the Company’s Fourth Quarter
2017 Supplemental Operating and Financial Information report for
further detail regarding these reimbursements.
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(4)
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Includes non-cash straight-line rent associated with the studio
properties.
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(5)
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Includes non-cash compensation expense, which the Company estimates
at $17,500 in 2018.
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(6)
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Includes amortization of deferred financing costs and loan premiums,
which the Company estimates at $6,000 in 2018.
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(7)
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Diluted shares represent ownership in the Company through shares of
common stock, OP Units and other convertible or exchangeable
instruments. The weighted average fully diluted common stocks/units
outstanding for 2018 includes an estimate for dilution impact of
stock grants to the Company’s executives under its 2016, 2017 and
2018 outperformance programs, as well as performance-based awards
under the Company’s special one-time retention award grants. This
estimate is based on the projected award potential of such programs
as of the end of such periods, as calculated in accordance with the
Accounting Standards Codification 260 Earnings Per Share.
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The Company does not provide a reconciliation for non-GAAP estimates on
a forward-looking basis, including the information under “2018 Outlook”
above, where it is unable to provide a meaningful or accurate
calculation or estimation of reconciling items and the information is
not available without unreasonable effort. This is due to the inherent
difficulty of forecasting the timing and/or amount of various items that
would impact net income attributable to common stockholders per diluted
share, which is the most directly comparable forward-looking GAAP
financial measure. This includes, for example, acquisition costs and
other non-core items that have not yet occurred, are out of the
Company’s control and/or cannot be reasonably predicted. For the same
reasons, the Company is unable to address the probable significance of
the unavailable information. Forward-looking non-GAAP financial measures
provided without the most directly comparable GAAP financial measures
may vary materially from the corresponding GAAP financial measures.
About Hudson Pacific Properties
Hudson Pacific Properties is a visionary real estate investment trust
that owns and operates more than 17 million square feet of marquee
office and studio properties. Focused on premier West Coast epicenters
of innovation, media and technology, its anchor tenants include Fortune
500 and leading growth companies such as Netflix, Google, Square, Uber,
NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE
under the symbol HPP, and listed as a component of the Russell 2000® and
the Russell 3000® indices. For more information visit HudsonPacificProperties.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the
meaning of the federal securities laws. Forward-looking statements
relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions
concerning matters that are not historical facts. In some cases, you can
identify forward-looking statements by the use of forward-looking
terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” or
“potential” or the negative of these words and phrases or similar words
or phrases that are predictions of or indicate future events or trends
and that do not relate solely to historical matters. Forward-looking
statements involve known and unknown risks, uncertainties, assumptions
and contingencies, many of which are beyond the Company’s control, which
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,
2017 filed with the Securities and Exchange Commission, or SEC, on
February 16, 2018, and other risks described in documents subsequently
filed by the Company from time to time with the SEC.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20181010005139/en/
Hudson Pacific Properties, Inc.
Laura Campbell
Senior Vice
President, Investor Relations & Marketing
(310) 622-1702
lcampbell@hudsonppi.com
Source: Hudson Pacific Properties, Inc.