10-Q 1 hpp-20240331.htm 10-Q hpp-20240331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________
FORM 10-Q
______________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission File Number: 001-34789 (Hudson Pacific Properties, Inc.)
Commission File Number: 333-202799-01 (Hudson Pacific Properties, L.P.)
______________________________________
Hudson Pacific Properties, Inc.
Hudson Pacific Properties, L.P.
(Exact name of registrant as specified in its charter)
Hudson Pacific Properties, Inc.

Maryland
(State or other jurisdiction of incorporation or organization)
27-1430478
(I.R.S. Employer Identification Number)
Hudson Pacific Properties, L.P.

Maryland
(State or other jurisdiction of incorporation or organization)
80-0579682
(I.R.S. Employer Identification Number)
11601 Wilshire Blvd., Ninth Floor
Los Angeles, California 90025
(Address of principal executive offices) (Zip Code)
(310) 445-5700
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

______________________________________ 

Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each classTrading Symbol(s)Name of each exchange on which registered
Hudson Pacific Properties, Inc.Common Stock, $0.01 par value
HPP
New York Stock Exchange
Hudson Pacific Properties, Inc.
4.750% Series C Cumulative Redeemable Preferred Stock
HPP Pr C
New York Stock Exchange





Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   
 
Hudson Pacific Properties, Inc. Yes  ☒   No  ☐
Hudson Pacific Properties, L.P. Yes  ☒   No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    
Hudson Pacific Properties, Inc. Yes  ☒   No  ☐
Hudson Pacific Properties, L.P. Yes  ☒   No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Hudson Pacific Properties, Inc.
Large accelerated filer
Accelerated filer ☐
Non-accelerated filer ☐
Smaller reporting company
Emerging growth company

Hudson Pacific Properties, L.P.
Large accelerated filer ☐
Accelerated filer ☐
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Hudson Pacific Properties, Inc. ☐
Hudson Pacific Properties, L.P. ☐  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   
Hudson Pacific Properties, Inc.  Yes  ☐    No  
Hudson Pacific Properties, L.P. Yes  ☐    No  

The number of shares of common stock of Hudson Pacific Properties, Inc. outstanding at May 3, 2024 was 141,144,592.



EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2024 of Hudson Pacific Properties, Inc., a Maryland corporation, and Hudson Pacific Properties, L.P., a Maryland limited partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” or “our Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. In statements regarding qualification as a REIT, such terms refer solely to Hudson Pacific Properties, Inc. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.
Hudson Pacific Properties, Inc. is a real estate investment trust, or REIT, and the sole general partner of our operating partnership. As of March 31, 2024, Hudson Pacific Properties, Inc. owned approximately 95.2% of the ownership interest in our operating partnership (including unvested restricted units). The remaining approximately 4.8% interest was owned by certain of our executive officers and directors, certain of their affiliates and other outside investors and includes unvested operating partnership performance units. As the sole general partner of our operating partnership, Hudson Pacific Properties, Inc. has the full, exclusive and complete responsibility for our operating partnership’s day-to-day management and control.
We believe combining the quarterly reports on Form 10-Q of Hudson Pacific Properties, Inc. and the operating partnership into this single report results in the following benefits:
enhancing investors’ understanding of our Company and our operating partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
eliminating duplicative disclosure and providing a more streamlined and readable presentation because a substantial portion of the disclosures apply to both our Company and our operating partnership; and
creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.

There are a few differences between our Company and our operating partnership, which are reflected in the disclosures in this report. We believe it is important to understand the differences between our Company and our operating partnership in the context of how we operate as an interrelated, consolidated company. Hudson Pacific Properties, Inc. is a REIT, the only material assets of which are the units of partnership interest in our operating partnership. As a result, Hudson Pacific Properties, Inc. does not conduct business itself, other than acting as the sole general partner of our operating partnership, issuing equity from time to time and guaranteeing certain debt of our operating partnership. Hudson Pacific Properties, Inc. itself does not issue any indebtedness but guarantees some of the debt of our operating partnership. Our operating partnership, which is structured as a partnership with no publicly traded equity, holds substantially all of the assets of our Company and conducts substantially all of our business. Except for net proceeds from equity issuances by Hudson Pacific Properties, Inc., which are generally contributed to our operating partnership in exchange for units of partnership interest in our operating partnership, our operating partnership generates the capital required by our Company’s business through its operations, its incurrence of indebtedness or through the issuance of units of partnership interest in our operating partnership.
Non-controlling interest, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of our Company and those of our operating partnership. The common units in our operating partnership are accounted for as partners’ capital in our operating partnership’s consolidated financial statements and, to the extent not held by our Company, as a non-controlling interest in our Company’s consolidated financial statements. The differences between stockholders’ equity, partners’ capital and non-controlling interest result from the differences in the equity issued by our Company and our operating partnership.
To help investors understand the significant differences between our Company and our operating partnership, this report presents the consolidated financial statements separately for our Company and our operating partnership. All other sections of this report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures About Market Risk,” are presented together for our Company and our operating partnership.
In order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that our Company and our operating partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, or the Exchange Act and 18 U.S.C. §1350, this report also includes separate Part I, Item 4 “Controls and Procedures” sections and separate Exhibit 31 and 32 certifications for each of Hudson Pacific Properties, Inc. and our operating partnership.
3



HUDSON PACIFIC PROPERTIES, INC. AND HUDSON PACIFIC PROPERTIES, L.P.
TABLE OF CONTENTS

Page
ITEM 1.Financial Statements of Hudson Pacific Properties, Inc.
ITEM 1.Financial Statements of Hudson Pacific Properties, L.P.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 1.
ITEM 1A.
ITEM 2.
ITEM 3.
ITEM 4.
ITEM 5.
ITEM 6.

4

PART I—FINANCIAL INFORMATION
ITEM 1.          FINANCIAL STATEMENTS OF HUDSON PACIFIC PROPERTIES, INC.

HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)

March 31, 2024
(unaudited)
December 31, 2023
ASSETS
Investment in real estate, at cost$8,178,529 $8,212,896 
Accumulated depreciation and amortization(1,736,720)(1,728,437)
Investment in real estate, net6,441,809 6,484,459 
Non-real estate property, plant and equipment, net119,750 118,783 
Cash and cash equivalents114,305 100,391 
Restricted cash19,267 18,765 
Accounts receivable, net 23,980 24,609 
Straight-line rent receivables, net217,685 220,787 
Deferred leasing costs and intangible assets, net319,214 326,950 
Operating lease right-of-use assets370,056 376,306 
Prepaid expenses and other assets, net90,812 94,145 
Investment in unconsolidated real estate entities270,440 252,711 
Goodwill264,144 264,144 
TOTAL ASSETS$8,251,462 $8,282,050 
LIABILITIES AND EQUITY
Liabilities
Unsecured and secured debt, net$4,034,300 $3,945,314 
Joint venture partner debt66,136 66,136 
Accounts payable, accrued liabilities and other203,194 203,736 
Operating lease liabilities383,993 389,210 
Intangible liabilities, net26,305 27,751 
Security deposits, prepaid rent and other87,047 88,734 
Total liabilities4,800,975 4,720,881 
Commitments and contingencies (note 20)
Redeemable preferred units of the operating partnership9,815 9,815 
Redeemable non-controlling interest in consolidated real estate entities52,108 57,182 
Equity
Hudson Pacific Properties, Inc. stockholders' equity:
4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized, 17,000,000 shares outstanding at March 31, 2024 and December 31, 2023
425,000 425,000 
Common stock, $0.01 par value, 481,600,000 authorized, 141,144,592 and 141,034,806 shares outstanding at March 31, 2024 and December 31, 2023, respectively
1,403 1,403 
Additional paid-in capital2,753,640 2,651,798 
Accumulated other comprehensive income (loss)3,033 (187)
Total Hudson Pacific Properties, Inc. stockholders’ equity3,183,076 3,078,014 
Non-controlling interest—members in consolidated real estate entities120,526 335,439 
Non-controlling interest—units in the operating partnership84,962 80,719 
Total equity3,388,564 3,494,172 
TOTAL LIABILITIES AND EQUITY$8,251,462 $8,282,050 








The accompanying notes are an integral part of these consolidated financial statements.
5




HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share data)
Three Months Ended March 31,
20242023
REVENUES
Office
Rental revenues$171,427 $202,657 
Service and other revenues3,648 3,976 
Total office revenues175,075 206,633 
Studio
Rental revenues13,600 16,253 
Service and other revenues25,348 29,377 
Total studio revenues38,948 45,630 
Total revenues214,023 252,263 
OPERATING EXPENSES
Office operating expenses72,947 74,054 
Studio operating expenses37,109 37,244 
General and administrative19,710 18,724 
Depreciation and amortization91,854 97,139 
Total operating expenses221,620 227,161 
OTHER INCOME (EXPENSES)
Loss from unconsolidated real estate entities(743)(745)
Fee income1,125 2,402 
Interest expense(44,089)(53,807)
Interest income854 371 
Management services reimbursement income—unconsolidated real estate entities1,156 1,064 
Management services expense—unconsolidated real estate entities(1,156)(1,064)
Transaction-related expenses(2,150)(1,186)
Unrealized (loss) gain on non-real estate investments(898)839 
Gain on sale of real estate 7,046 
Other income143 5,161 
Total other expenses(45,758)(39,919)
Loss before income tax benefit (provision)(53,355)(14,817)
Income tax benefit (provision)  
Net loss(53,355)(14,817)
Net income attributable to Series A preferred units(153)(153)
Net income attributable to Series C preferred shares(5,047)(5,047)
Net income attributable to participating securities(202)(553)
Net loss (income) attributable to non-controlling interest in consolidated real estate entities4,169 (1,031)
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities1,157 894 
Net loss attributable to common units in the operating partnership1,229 282 
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS$(52,202)$(20,425)
BASIC AND DILUTED PER SHARE AMOUNTS
Net loss attributable to common stockholders—basic$(0.37)$(0.14)
Net loss attributable to common stockholders—diluted$(0.37)$(0.14)
Weighted average shares of common stock outstanding—basic141,122,337 141,025,021 
Weighted average shares of common stock outstanding—diluted141,122,337 141,025,021 








The accompanying notes are an integral part of these consolidated financial statements.
6




HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited, in thousands)
Three Months Ended March 31,
20242023
Net loss$(53,355)$(14,817)
Currency translation adjustments(2,685)2,014 
Net unrealized gains on derivative instruments:
Unrealized gains8,770 721 
Reclassification adjustment for realized (gains) losses(2,547)714 
Total net unrealized gains on derivative instruments6,223 1,435 
Total other comprehensive income3,538 3,449 
Comprehensive loss(49,817)(11,368)
Comprehensive income attributable to Series A preferred units(153)(153)
Comprehensive income attributable to Series C preferred stock(5,047)(5,047)
Comprehensive income attributable to participating securities(202)(553)
Comprehensive loss (income) attributable to non-controlling interest in consolidated real estate entities4,014 (1,266)
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities1,157 894 
Comprehensive loss attributable to non-controlling interest in the operating partnership1,066 193 
COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS$(48,982)$(17,300)







































The accompanying notes are an integral part of these consolidated financial statements.
7



HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF EQUITY
For the three months ended March 31, 2024
(unaudited, in thousands, except share data)
Hudson Pacific Properties, Inc. Stockholders’ EquityNon-controlling Interest
Series C Cumulative Redeemable Preferred StockShares of Common StockStock AmountAdditional Paid-in Capital Retained Earnings (Accumulated Deficit)Accumulated Other Comprehensive (Loss) IncomeUnits in the Operating PartnershipMembers in Consolidated Real Estate EntitiesTotal Equity
Balance, December 31, 2023
$425,000 141,034,806 $1,403 $2,651,798 $ $(187)$80,719 $335,439 $3,494,172 
Contributions— — — — — — — 4,704 4,704 
Distributions— — — — — — — (14,085)(14,085)
Purchase of non-controlling interest— — — 160,581 — — — (201,518)(40,937)
Issuance of unrestricted stock— 175,245 1 (1)— — — —  
Shares withheld to satisfy tax withholding obligations— (72,157)(1)(494)— — — — (495)
Declared dividend(5,047)— — (59,220)52,000 — (649)— (12,916)
Amortization of stock-based compensation — — — 843 — — 6,091 — 6,934 
Net income (loss)5,047 — — — (52,000)— (1,229)(4,169)(52,351)
Other comprehensive income— — — — — 3,220 163 155 3,538 
Redemption of common units in operating partnership— 6,698 — 133 — — (133)—  
Balance, March 31, 2024
$425,000 141,144,592 $1,403 $2,753,640 $ $3,033 $84,962 $120,526 $3,388,564 
Balance, December 31, 2022
$425,000 141,054,478 $1,409 $2,889,967 $ $(11,272)$66,971 $377,756 $3,749,831 
Contributions— — — — — — 6,497 6,497 
Distributions— — — — — — — (9,559)(9,559)
Issuance of unrestricted stock— 33,928 — — — — — —  
Shares withheld to satisfy tax withholding obligations(12,237)— (87)— — — — (87)
Repurchase of common stock— (187,400)(6)(1,363)— — — — (1,369)
Declared dividend(5,047)— — (55,368)19,872 — (1,169)— (41,712)
Amortization of stock-based compensation— — — 1,912 — — 3,996 — 5,908 
Net income (loss)5,047 — — — (19,872)— (282)1,031 (14,076)
Other comprehensive income— — — — — 3,125 89 235 3,449 
Balance, March 31, 2023
$425,000 140,888,769 $1,403 $2,835,061 $ $(8,147)$69,605 $375,960 $3,698,882 












The accompanying notes are an integral part of these consolidated financial statements.
8




HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Three Months Ended March 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(53,355)$(14,817)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization91,854 97,139 
Non-cash interest expense1,915 7,371 
Amortization of stock-based compensation6,567 5,236 
Loss from unconsolidated real estate entities743 745 
Unrealized loss (gain) on non-real estate investments898 (839)
Straight-line rents3,102 (10,711)
Straight-line rent expenses1,033 1,268 
Amortization of above- and below-market leases, net(1,421)(1,620)
Amortization of above- and below-market ground leases, net662 688 
Amortization of lease incentive costs139 311 
Gain on sale of real estate (7,046)
Deferred tax benefit(8) 
Change in operating assets and liabilities:
Accounts receivable596 1,756 
Deferred leasing costs and lease intangibles(3,925)(6,139)
Prepaid expenses and other assets7,675 (3,537)
Accounts payable, accrued liabilities and other10,340 15,294 
Security deposits, prepaid rent and other(1,687)7,417 
Net cash provided by operating activities65,128 92,516 
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of real estate 100,441 
Additions to investment in real estate(44,805)(76,452)
Contributions to non-real estate investments(547)(901)
Proceeds from sales of non-real estate investments 503 
Distributions from unconsolidated real estate entities 668 
Contributions to unconsolidated real estate entities(20,933)(12,986)
Additions to non-real estate property, plant and equipment(5,075)(774)
Net cash (used in) provided by investing activities(71,360)10,499 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from unsecured and secured debt98,000 55,783 
Payments of unsecured and secured debt(10,000)(212,000)
Repurchases of common stock (1,369)
Dividends paid to common stock and unitholders(7,869)(36,665)
Dividends paid to preferred stock and unitholders(5,200)(5,200)
Distributions to redeemable non-controlling members in consolidated real estate entities(3,917)(3,248)
Contributions from non-controlling members in consolidated real estate entities4,704 6,497 
Purchase of non-controlling interest(40,937) 
Distributions to non-controlling members in consolidated real estate entities(14,085)(9,559)
Payments to satisfy tax withholding obligations(48)(87)
Net cash provided by (used in) financing activities20,648 (205,848)
Net increase (decrease) in cash and cash equivalents and restricted cash14,416 (102,833)
Cash and cash equivalents and restricted cash—beginning of period119,156 285,731 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD
$133,572 $182,898 






The accompanying notes are an integral part of these consolidated financial statements.
9


ITEM 1.             FINANCIAL STATEMENTS OF HUDSON PACIFIC PROPERTIES, L.P.

HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
March 31, 2024
(unaudited)
December 31, 2023
ASSETS
Investment in real estate, at cost$8,178,529 $8,212,896 
Accumulated depreciation and amortization(1,736,720)(1,728,437)
Investment in real estate, net6,441,809 6,484,459 
Non-real estate property, plant and equipment, net119,750 118,783 
Cash and cash equivalents114,305 100,391 
Restricted cash19,267 18,765 
Accounts receivable, net 23,980 24,609 
Straight-line rent receivables, net217,685 220,787 
Deferred leasing costs and intangible assets, net319,214 326,950 
Operating lease right-of-use assets370,056 376,306 
Prepaid expenses and other assets, net90,812 94,145 
Investment in unconsolidated real estate entities270,440 252,711 
Goodwill264,144 264,144 
TOTAL ASSETS$8,251,462 $8,282,050 
LIABILITIES AND CAPITAL
Liabilities
Unsecured and secured debt, net$4,034,300 $3,945,314 
Joint venture partner debt66,136 66,136 
Accounts payable, accrued liabilities and other203,194 203,736 
Operating lease liabilities383,993 389,210 
Intangible liabilities, net26,305 27,751 
Security deposits, prepaid rent and other87,047 88,734 
Total liabilities4,800,975 4,720,881 
Commitments and contingencies (note 20)
Redeemable preferred units of the operating partnership9,815 9,815 
Redeemable non-controlling interest in consolidated real estate entities52,108 57,182 
Capital
Hudson Pacific Properties, L.P. partners’ capital
4.750% Series C cumulative redeemable preferred units, $25.00 per unit liquidation preference, 17,000,000 units outstanding at March 31, 2024 and December 31, 2023
425,000 425,000 
Common units, 144,822,419 and 143,845,239 outstanding at March 31, 2024 and December 31, 2023, respectively
2,839,717 2,733,795 
Accumulated other comprehensive income (loss)3,321 (62)
Total Hudson Pacific Properties, L.P. partners’ capital3,268,038 3,158,733 
Non-controlling interest—members in consolidated real estate entities120,526 335,439 
Total capital3,388,564 3,494,172 
TOTAL LIABILITIES AND CAPITAL$8,251,462 $8,282,050 











The accompanying notes are an integral part of these consolidated financial statements.
10




HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except unit data)
Three Months Ended March 31,
20242023
REVENUES
Office
Rental revenues$171,427 $202,657 
Service and other revenues3,648 3,976 
Total office revenues175,075 206,633 
Studio
Rental revenues13,600 16,253 
Service and other revenues25,348 29,377 
Total studio revenues38,948 45,630 
Total revenues214,023 252,263 
OPERATING EXPENSES
Office operating expenses72,947 74,054 
Studio operating expenses37,109 37,244 
General and administrative19,710 18,724 
Depreciation and amortization91,854 97,139 
Total operating expenses221,620 227,161 
OTHER INCOME (EXPENSES)
Loss from unconsolidated real estate entities(743)(745)
Fee income1,125 2,402 
Interest expense(44,089)(53,807)
Interest income854 371 
Management services reimbursement income—unconsolidated real estate entities1,156 1,064 
Management services expense—unconsolidated real estate entities(1,156)(1,064)
Transaction-related expenses(2,150)(1,186)
Unrealized (loss) gain on non-real estate investments(898)839 
Gain on sale of real estate 7,046 
Other income143 5,161 
Total other expenses(45,758)(39,919)
Loss before income tax benefit (provision)(53,355)(14,817)
Income tax benefit (provision)  
Net loss(53,355)(14,817)
Net loss (income) attributable to non-controlling interest in consolidated real estate entities4,169 (1,031)
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities1,157 894 
Net loss attributable to Hudson Pacific Properties, L.P.(48,029)(14,954)
Net income attributable to Series A preferred units(153)(153)
Net income attributable to Series C preferred units(5,047)(5,047)
Net income attributable to participating securities(202)(553)
NET LOSS AVAILABLE TO COMMON UNITHOLDERS$(53,431)$(20,707)
BASIC AND DILUTED PER UNIT AMOUNTS
Net loss attributable to common unitholders—basic$(0.37)$(0.14)
Net loss attributable to common unitholders—diluted$(0.37)$(0.14)
Weighted average shares of common units outstanding—basic144,488,174 143,329,366 
Weighted average shares of common units outstanding—diluted144,488,174 143,329,366 








The accompanying notes are an integral part of these consolidated financial statements.
11




HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited, in thousands)
Three Months Ended March 31,
20242023
Net loss$(53,355)$(14,817)
Currency translation adjustments(2,685)2,014 
Net unrealized gains on derivative instruments:
Unrealized gains8,770 721 
Reclassification adjustment for realized (gains) losses(2,547)714 
Total net unrealized gains on derivative instruments6,223 1,435 
Total other comprehensive income3,538 3,449 
Comprehensive loss(49,817)(11,368)
Comprehensive income attributable to Series A preferred units(153)(153)
Comprehensive income attributable to Series C preferred units(5,047)(5,047)
Comprehensive income attributable to participating securities(202)(553)
Comprehensive loss (income) attributable to non-controlling interest in consolidated real estate entities4,014 (1,266)
Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities1,157 894 
COMPREHENSIVE LOSS ATTRIBUTABLE TO PARTNERS’ CAPITAL$(50,048)$(17,493)








































The accompanying notes are an integral part of these consolidated financial statements.
12



HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
For the three months ended March 31, 2024
(unaudited, in thousands, except share data)
Hudson Pacific Properties, L.P. Partners’ Capital
Preferred UnitsNumber of Common UnitsCommon UnitsAccumulated Other Comprehensive (Loss) IncomeTotal Partners’ CapitalNon-controlling Interest—Members in Consolidated Real Estate EntitiesTotal Capital
Balance, December 31, 2023
$425,000 143,845,239 $2,733,795 $(62)$3,158,733 $335,439 $3,494,172 
Contributions— — — — — 4,704 4,704 
Distributions— — — — — (14,085)(14,085)
Purchase of non-controlling interest— — 160,581 — 160,581 (201,518)(40,937)
Issuance of unrestricted units— 1,049,337 — — — —  
Units withheld to satisfy tax withholding obligations— (72,157)(495)— (495)— (495)
Declared distributions(5,047)— (7,869)— (12,916)— (12,916)
Amortization of unit-based compensation— — 6,934 — 6,934 — 6,934 
Net income (loss)5,047 — (53,229)— (48,182)(4,169)(52,351)
Other comprehensive income— — — 3,383 3,383 155 3,538 
Balance, March 31, 2024
$425,000 144,822,419 $2,839,717 $3,321 $3,268,038 $120,526 $3,388,564 
Balance, December 31, 2022
$425,000 143,246,320 $2,958,535 $(11,460)$3,372,075 $377,756 $3,749,831 
Contributions— — — — — 6,497 6,497 
Distributions— — — — — (9,559)(9,559)
Issuance of unrestricted units— 360,548 — — — —  
Repurchase of common units— (187,400)(1,369)— (1,369)— (1,369)
Units withheld to satisfy tax withholding obligations— (12,237)(87)— (87)— (87)
Declared distributions(5,047)— (36,665)— (41,712)— (41,712)
Amortization of unit-based compensation— — 5,908 — 5,908 — 5,908 
Net income (loss) 5,047 — (20,154)— (15,107)1,031 (14,076)
Other comprehensive income— — — 3,214 3,214 235 3,449 
Balance, March 31, 2023
$425,000 143,407,231 $2,906,168 $(8,246)$3,322,922 $375,960 $3,698,882 


















The accompanying notes are an integral part of these consolidated financial statements.
13




HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
Three Months Ended March 31,
20242023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(53,355)$(14,817)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization91,854 97,139 
Non-cash interest expense1,915 7,371 
Amortization of unit-based compensation6,567 5,236 
Loss from unconsolidated real estate entities743 745 
Unrealized loss (gain) on non-real estate investments898 (839)
Straight-line rents3,102 (10,711)
Straight-line rent expenses1,033 1,268 
Amortization of above- and below-market leases, net(1,421)(1,620)
Amortization of above- and below-market ground leases, net662 688 
Amortization of lease incentive costs139 311 
Gain on sale of real estate (7,046)
Deferred tax benefit(8) 
Change in operating assets and liabilities:
Accounts receivable596 1,756 
Deferred leasing costs and lease intangibles(3,925)(6,139)
Prepaid expenses and other assets7,675 (3,537)
Accounts payable, accrued liabilities and other10,340 15,294 
Security deposits, prepaid rent and other(1,687)7,417 
Net cash provided by operating activities65,128 92,516 
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of real estate 100,441 
Additions to investment in real estate(44,805)(76,452)
Contributions to non-real estate investments(547)(901)
Proceeds from sale of non-real estate investment 503 
Distributions from unconsolidated real estate entities 668 
Contributions to unconsolidated real estate entities(20,933)(12,986)
Additions to non-real estate property, plant and equipment(5,075)(774)
Net cash (used in) provided by investing activities(71,360)10,499 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from unsecured and secured debt98,000 55,783 
Payments of unsecured and secured debt(10,000)(212,000)
Repurchases of common units (1,369)
Distributions paid to common unitholders(7,869)(36,665)
Distributions paid to preferred unitholders(5,200)(5,200)
Distributions to redeemable non-controlling members in consolidated real estate entities(3,917)(3,248)
Contributions from non-controlling members in consolidated real estate entities4,704 6,497 
Purchase of non-controlling interest(40,937) 
Distributions to non-controlling members in consolidated real estate entities(14,085)(9,559)
Payments to satisfy tax withholding obligations(48)(87)
Net cash provided by (used in) financing activities20,648 (205,848)
Net increase (decrease) in cash and cash equivalents and restricted cash14,416 (102,833)
Cash and cash equivalents and restricted cash—beginning of period119,156 285,731 
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD
$133,572 $182,898 






The accompanying notes are an integral part of these consolidated financial statements.
14



Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)

1. Organization

Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.

The Company’s portfolio consists of properties primarily located throughout the United States, Western Canada and Greater London, United Kingdom. The following table summarizes the Company’s portfolio as of March 31, 2024:
SegmentsNumber of Properties
Square Feet
(unaudited)
Consolidated portfolio
Office45 13,130,915 
Studio3 1,256,522 
Future development5 1,616,242 
Total consolidated portfolio53 16,003,679 
Unconsolidated portfolio(1)
Office(2)
1 1,520,974 
Studio(3)
2 473,000 
Future development(4)
2 1,617,347 
Total unconsolidated portfolio5 3,611,321 
TOTAL58 19,615,000 
__________________ 
1.The Company owns 20% of the unconsolidated joint venture entity that owns the Bentall Centre property, 50% of the unconsolidated joint venture entity that owns Sunset Glenoaks Studios, 35% of the unconsolidated joint venture entity that owns Sunset Waltham Cross Studios and approximately 26% of the unconsolidated joint venture entity that owns the Sunset Pier 94 Studios development. The square footage shown above represents 100% of the properties.
2.Includes Bentall Centre.
3.Includes Sunset Glenoaks Studios and Sunset Pier 94 Studios.
4.Includes land for the Burrard Exchange and Sunset Waltham Cross Studios.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2023 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.

The Company has reclassified a loss on derivatives of $3.8 million from loss on derivatives to non-cash interest expense on the Consolidated Statement of Cash Flows for the three months ended March 31, 2023 to conform to the presentation for the three months ended March 31, 2024.

15



Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Principles of Consolidation

The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly-owned for reconsideration based on changing circumstances.

VIEs are defined as entities in which equity investors do not have:

the characteristics of a controlling financial interest;
sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or
the entity is structured with non-substantive voting rights.

The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of March 31, 2024, the Company has determined that its operating partnership and 19 joint ventures met the definition of a VIE. 12 of these joint ventures are consolidated and seven are unconsolidated.

Consolidated Joint Ventures

During the three months ended March 31, 2024, the Company purchased a 45% ownership interest in Hudson 1455 Market, L.P., a consolidated joint venture, from its joint venture partner for $43.5 million. Following the transaction, the Company owns 100% of the ownership interests in Hudson 1455 Market, L.P.

As of March 31, 2024, the operating partnership has determined that 12 of its joint ventures met the definition of a VIE and are consolidated:
EntityPropertyOwnership Interest
Hudson 1099 Stewart, L.P.Hill755.0 %
HPP-MAC WSP, LLC
None(1)
75.0 %
Hudson One Ferry REIT, L.P.Ferry Building55.0 %
Sunset Bronson Entertainment Properties, LLCSunset Bronson Studios, ICON, CUE51.0 %
Sunset Gower Entertainment Properties, LLCSunset Gower Studios51.0 %
Sunset 1440 North Gower Street, LLCSunset Gower Studios51.0 %
Sunset Las Palmas Entertainment Properties, LLCSunset Las Palmas Studios, Harlow51.0 %
Sunset Services Holdings, LLC
None(2)
51.0 %
Sunset Studios Holdings, LLCEPIC51.0 %
Hudson Media and Entertainment Management, LLC
None(3)
51.0 %
Hudson 6040 Sunset, LLC6040 Sunset51.0 %
Hudson 1918 Eighth, L.P.1918 Eighth55.0 %
__________________ 
1.HPP-MAC WSP, LLC owned 100% of the One Westside and Westside Two properties prior to their sale in December 2023.
2.Sunset Services Holdings, LLC wholly owns Services Holdings, LLC, which owns 100% interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which provide services to Sunset Bronson Entertainment Properties, LLC, Sunset Gower Entertainment Properties, LLC and Sunset Las Palmas Entertainment Properties, LLC, respectively.
3.Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively “Hollywood Media Portfolio”).

As of March 31, 2024 and December 31, 2023, the Company has determined that its operating partnership met the definition of a VIE and is consolidated.

16



Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company.

Unconsolidated Joint Ventures

As of March 31, 2024, the Company has determined it is not the primary beneficiary of seven of its joint ventures that are VIEs. Due to its significant influence over the unconsolidated entities, the Company accounts for them using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions.

The Company’s net equity investment in its unconsolidated joint ventures is reflected within investment in unconsolidated real estate entities on the Consolidated Balance Sheets. The Company’s share of net income or loss from the joint ventures is included within (loss) income from unconsolidated real estate entities on the Consolidated Statements of Operations. The Company uses the cumulative earnings approach for determining cash flow presentation of distributions from unconsolidated joint ventures. Under this approach, distributions up to the amount of cumulative equity in earnings recognized are classified as cash inflows from operating activities, and those in excess of that amount are classified as cash inflows from investing activities. Refer to Note 5 for further details regarding our investments in unconsolidated joint ventures.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring and assessing the carrying values of its real estate properties, the fair value measurement of contingent consideration, assets acquired and liabilities assumed in business combination transactions, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and the valuation of performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.

Lease Accounting

The Company accounts for its leases under Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), which requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset.

Lessee Accounting

The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground leases, sound stage leases, office leases and other facility leases and are reflected in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company makes an accounting policy election, by class of underlying asset, not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term.

ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and lease liabilities was 5.6% as of March 31, 2024. ROU assets include any lease payments made and exclude lease incentives. ROU assets acquired in connection with business combination transactions are also adjusted for above- and below- market lease terms. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term was 22 years as of March 31, 2024.

17



Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Lessor Accounting

The presentation of revenues on the Consolidated Statements of Operations reflects a single lease component that combines rental, tenant recoveries and other tenant-related revenues for the office portfolio, with the election of the lessor practical expedient. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”).

Revenue Recognition

The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues (v) sale of real estate (vi) management fee income and (vii) management services reimbursement income.