Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Forward-Looking Statements This Supplemental Information contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. You should not rely on forward-looking statements as predictions of future events. Forward-looking statements involve numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statement made by us. These risks and uncertainties include, but are not limited to: uncertainties regarding the impact of the COVID-19 pandemic, and restrictions intended to prevent its spread, on our business and the economy generally; adverse economic and real estate developments in Northern and Southern California, the Pacific Northwest and Western Canada; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; and the consequences of any possible future terrorist attacks. These factors are not exhaustive. For a discussion of important risks related to Hudson Pacific Properties, Inc.’s business and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Risk Factors” in Hudson Pacific Properties, Inc.’s Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by Hudson Pacific Properties, Inc. from time to time with the SEC. You are cautioned that the information contained herein speaks only as of the date hereof and Hudson Pacific Properties, Inc. assumes no obligation to update any forward-looking information, whether as a result of new information, future events or otherwise. Hudson Pacific Properties, Inc. is referred to herein as the “Company,” “Hudson Pacific,” “we,” “us,” or “our.” Non-GAAP Measures This Supplemental Information includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental Information. Definitions of these non-GAAP financial measures can be found in the Definitions section of this Supplemental starting on page 54. The Company also presents the “Company’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). Management believes that presenting the “Company’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures, and in some cases the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the joint venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting the Company’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures. 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Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Table of Contents Page Executive Summary, Corporate Data, Executive Management, Board of Directors, Equity Research Coverage, Fixed Income Coverage and Rating 4 Agencies Financial Information 9 Consolidated Balance Sheets 10 Consolidated Statements of Operations 11 Funds from Operations 12 Adjusted Funds from Operations 14 Same-Store Property Performance—Consolidated 15 Same-Store Property Performance—Company's Share 17 Net Operating Income Detail (NOI) 19 Debt Summary 21 Capital Structure 23 Unsecured and Secured Debt Maturities, Composition and Covenant 24 Compliance Operational and Portfolio Information 26 In-Service Office Properties 27 In-Service Office Properties by Location 30 Studio Properties 32 Land Properties 33 Corporate Headquarters: Repositioning, Redevelopment, Development and Held For Sale Properties 34 11601 Wilshire Boulevard, 9th Floor, Los Angeles, CA 90025 Under Construction and Future Development Projects 36 (310) 445-5700 Recently Completed, Under Construction and Planned Project Images 38 Office Tenant Industry Diversification 39 Website: Fifteen Largest Office Tenants 40 Office Property Leasing Activity 42 HudsonPacificProperties.com Commenced Office Leases with Non-Recurring Upfront Abatements 44 Uncommenced Office Leases—Next Eight Quarters 45 NYSE Trading Symbol: Backfilled Office Leases—Next Eight Quarters 47 Expiring Office Leases—Next Eight Quarters 49 HPP Expiring Office Leases—Annual 52 Definitions and Reconciliations 53 Investor Relations: Definitions 54 Laura Campbell Reconciliation of Net (Loss) Income to Net Operating Income 56 Senior Vice President, Investor Relations and Marketing (310) 622-1702 Reconciliation of Net (Loss) Income to Company's Share of Net Operating 57 Income Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized) 58 Page 3 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Executive Summary Hudson Pacific Properties acquires, redevelops and develops creative office Dividend and studio properties in the West Coast tech and media epicenters of Los • Declared and paid a quarterly dividend of $0.25 per share on common stock Angeles, Silicon Valley, San Francisco, Seattle and Vancouver. We are the leading publicly traded owner of office space in Silicon Valley, the largest Capital Transactions independent owner/operator of studios in Los Angeles, and our portfolio • Completed joint venture through which funds affiliated with Blackstone totals nearly 19 million square feet, including land for development, in our Property Partners purchased a 49% interest in the Company’s 2.2 million- core markets. Our top-tier assets combined with our leasing and square-foot Hollywood Media Portfolio with a gross valuation of $1.65 billion, management expertise have enabled us to cultivate a tenant base of premier and closed a $900.0 million mortgage loan secured by the portfolio blue-chip and growth companies, like Google and Netflix. Our strategic focus is value creation through less capital- and time-intensive repositionings and • Purchased $107.8 million of the loan securing the Hollywood Media Portfolio, redevelopments, although our deep in-house expertise allows us to execute which bears interest at a weighted average annual rate of LIBOR plus 3.31% on a full range of opportunities—from incremental lease-up to cutting-edge • Repurchased 1.2 million shares of common stock new construction. Development Pipeline Financials (Compared to Third Quarter 2019) • Received Certificate of Occupancy for 106,125-square-foot Harlow • Net loss attributable to common stockholders of $5.4 million ($0.04 per development at Sunset Las Palmas Studios diluted share) compared to net income to common stockholders of $58.8 ESG Leadership million ($0.38 per diluted share) • Achieved 100% carbon neutrality across all operations • FFO, excluding specified items, of $66.0 million ($0.43 per diluted share) compared to $79.6 million ($0.51 per diluted share) COVID-19 Update • Total revenue decreased 5.4% to $196.3 million • Collected 97% of third quarter total rents, specifically 98% of office, 100% of studio and 52% of storefront retail rents (excludes rents deferred or abated in Office Highlights accordance with COVID-19-related lease amendments) • Executed 38 new and renewal leases totaling 184,583 square feet, with Post-Quarter Highlights GAAP and cash rent growth of 40.8% and 28.5%, respectively • Completed entitlements to develop an additional 478,845 square feet at • Stabilized and in-service office portfolios were 94.5% and 93.5% leased, Sunset Gower Studios respectively • Topped off structural steel at 584,000-square-foot One Westside adaptive • Net operating income and cash net operating income for the consolidated reuse 40 same-store properties decreased 9.2% and 2.2%, respectively Guidance Studio Highlights • Due to ongoing uncertainties regarding the COVID-19 pandemic, the • Trailing 12-month occupancy for the three same-store studio properties Company has not reinstated earnings guidance for the balance of 2020 was 91.3% • Net operating income and cash net operating income for the three same- Conference Call Information: store studio properties decreased 39.3% and 40.1%, respectively Friday, October 30, 2020 at 11:00 AM PST / 2:00 PM EST Balance Sheet (877) 407-0784 (U.S.) | (201) 689-8560 (International) • Investment grade credit rated with $1.3 billion of total liquidity with no maturities until 2022 Page 4 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Corporate Data(1) Unaudited, in thousands, except per share data September 30, June 30, March 31, December 31, September 30, 2020 2020 2020 2019 2019 Number of office properties owned 52 52 52 52 52 Office square feet(2) 14,870,607 14,856,553 14,851,524 14,850,480 14,852,478 Same-store office square feet(2)(3) 11,781,358 10,207,076 10,211,724 8,553,011 8,555,255 Same-store office leased rate as of end of period(3) 94.4% 94.5% 95.3% 96.0% 95.9% Stabilized office square feet(2)(4) 12,909,362 12,924,852 12,689,728 12,840,086 12,099,873 Stabilized office leased rate as of end of period(4) 94.5% 95.1% 95.9% 96.4% 96.4% In-service office square feet(2)(5) 13,865,041 13,880,531 13,876,339 14,122,684 13,839,392 In-service office leased rate as of end of period(5) 93.5% 94.0% 94.8% 95.1% 94.7% Number of studio properties owned 3 3 3 3 3 Same-store studio square feet(2)(6) 1,224,403 1,224,403 1,224,403 1,213,203 1,213,203 Same-store studio leased rate as of end of period(7) 91.3% 92.7% 92.4% 92.6% 92.8% Non-same-store studio square feet(2) N/A N/A N/A 11,200 11,200 Non-same-store studio leased rate as of end of period N/A N/A N/A 81.3% 93.4% Number of land properties owned 7 7 7 7 7 Land properties estimated square feet(8) 2,736,825 2,681,376 2,681,376 2,681,376 2,681,376 Total portfolio square feet 18,831,835 18,762,332 18,757,303 18,756,259 18,758,257 Company’s share of debt, net(9)(10) $ 2,341,602 $ 3,009,488 $ 2,928,874 $ 2,865,397 $ 2,755,099 Company’s share of market capitalization(9)(10) $ 6,081,014 $ 6,948,827 $ 6,928,704 $ 8,813,870 $ 8,025,202 Adjusted EBITDAre (annualized) / Consolidated debt, net(10) 6.9x 7.0x 6.8x 6.4x 6.3x Company’s share of debt, net/Company’s share of market capitalization(9)(10) 38.5% 43.3% 42.3% 32.5% 34.3% Share data: FFO(10), excluding specific items, per common stock/unit—diluted(11) $ 0.43 $ 0.50 $ 0.54 $ 0.55 $ 0.51 Range of closing prices(11) $ 21.25 - 25.32 $ 19.89 - 29.27 $ 16.78 - 38.70 $ 32.83 - 37.65 $ 32.96 - 35.41 Closing price at quarter end $ 21.93 $ 25.16 $ 25.36 $ 37.65 $ 33.46 Weighted average fully diluted common stock/units outstanding(10) 154,774 155,013 157,501 156,229 156,011 Shares of common stock/units outstanding at end of period(10) 154,767 156,572 157,722 157,994 157,505 (1) Represents 100% share of consolidated and unconsolidated joint ventures, except with respect to the Company’s Share of debt, net, market capitalization, and the quotient of those amounts. (2) Property square footage has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing. (3) Same-store office defined as all properties owned and included in our office portfolio as of July 1, 2019 and still owned and included in our office portfolio as of September 30, 2020. (4) Stabilized office square feet and leased rate excludes the lease-up, land, repositioning, redevelopment, development and held for sale properties described on pages 28, 33 and 34. (5) In-service office square feet and leased rate includes the stabilized office and lease-up properties described on pages 27 and 28. (6) Same-store studio defined as all properties owned and included in our studio portfolio as of July 1, 2019 and still owned and included in our studio portfolio as of September 30, 2020. (7) Percent leased for same-store studio is the average percent leased for the 12 months ended as of the quarter indicated. (8) Square footage for land properties represents management’s estimate of developable square footage, the majority of which remains subject to receipt of entitlement approvals not yet obtained. Includes the pending purchase of Washington 1000. (9) See capital structure on page 23 for additional detail. Periods prior to March 31, 2020 have been retrospectively adjusted to reflect the presentation of the Company’s share of debt, net of cash and cash equivalents. (10) See definitions starting on page 54. (11) For the quarter indicated. Page 5 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Executive Management Our Executive Management is comprised of highly seasoned, approachable experts who embrace innovation and always think outside the box. Together, they have decades of experience leading successful publicly traded companies. They have bought, sold, operated, built and re-built real estate properties across cycles and in every major West Coast market, and in the process cultivated unparalleled industry relationships. Our culture starts at the top—a collaborative, entrepreneurial spirit, combined with integrity and a deep sense of fiduciary responsibility. Victor J. Coleman Kay L. Tidwell Chief Executive Officer Executive Vice President, General Counsel and Chief Risk Officer Mark Lammas President and Treasurer Laura Campbell Senior Vice President, Investor Relations Alex Vouvalides and Marketing Chief Investment Officer and Chief Operating Officer Drew B. Gordon Christopher Barton Senior Vice President, Northern Executive Vice President, Development and California Capital Investments Gary Hansel Joshua A. Hatfield Senior Vice President, Southern Executive Vice President, Operations California Harout Diramerian Bill Humphrey Chief Financial Officer Senior Vice President, Sunset Studios Steven Jaffe Andrea Rupp Executive Vice President, Business Affairs Senior Vice President, Human Resources Dale Shimoda Andy Wattula Executive Vice President, Finance Senior Vice President, Pacific Northwest Arthur X. Suazo Chuck We Executive Vice President, Leasing Senior Vice President, Western Canada Page 6 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Board of Directors Our accomplished Directors are committed to sound corporate governance, and ensuring full compliance and accountability to shareholders in accordance with all laws and regulations. We believe that dedication to these principles and the highest ethical standards is essential to both short- and long-term value creation and preservation. We also recognize and embrace board diversity in all its facets—skills, experience, gender, ethnicity, race—as essential to maintaining our competitive advantage and attaining our strategic objectives. Victor J. Coleman Christy Haubegger Chairman of the Board, Chief Executive Officer, Executive Vice President and Chief Hudson Pacific Properties, Inc. Enterprise Inclusion Officer, WarnerMedia Theodore R. Antenucci Mark D. Linehan President and Chief Executive Officer, President and Chief Executive Officer, Catellus Development Corporation Wynmark Company Richard B. Fried Robert M. Moran, Jr. Managing Member, Farallon Capital Co-Founder and Co-Owner, FJM Management, L.L.C. Investments LLC Jonathan M. Glaser Barry A. Porter Managing Member, JMG Capital Management Managing General Partner, Clarity LLC Partners L.P. Robert L. Harris II Andrea Wong Executive Chairman (retired), Acacia Research President (retired), International Corporation Production, Sony Pictures Television Page 7 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Equity Research Coverage BofA Securities Mizuho Securities James Feldman Omotayo Okusanya (646) 855-5808 (646) 949-9672 BTIG Morgan Stanley Tom Catherwood Vikram Malhotra (212) 738-6140 (212) 761-7567 Citigroup Global Markets Piper Sandler & Company Michael Bilerman | Emmanuel Korchman Alexander Goldfarb (212) 816-1383 | (212) 816-1382 (212) 466-7937 D.A. Davidson Robert W. Baird & Company Barry Oxford David Rodgers (212) 240-9871 (216) 737-7341 Goldman Sachs Scotiabank Richard Skidmore Nicholas Yulico (801) 741-5459 (212) 225-6904 Green Street Advisors SMBC Nikko Securities Daniel Ismail Richard Anderson (949) 640-8780 (646) 521-2351 Jefferies LLC Wells Fargo Securities Peter Abramowitz Blaine Heck (212) 336-7241 (443) 263-2949 KeyBanc Capital Markets Craig Mailman (917) 368-2316 Fixed Income Coverage Rating Agencies Wells Fargo Fitch Ratings Moody’s Investor Service Thierry Perrein Stephen Boyd Alice Chung (704) 410-3252 (212) 908-9153 (212) 553-2949 Standard & Poor’s Fernanda Hernandez (212) 438-1347 Page 8 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Financial Information
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Consolidated Balance Sheets In thousands, except share data September 30, 2020 December 31, 2019 (Unaudited) ASSETS Investment in real estate, net $ 6,493,866 $ 6,370,849 Cash and cash equivalents 365,294 46,224 Restricted cash 38,979 12,034 Accounts receivable, net 14,136 13,007 Straight-line rent receivables, net 226,510 195,328 Deferred leasing costs and lease intangible assets, net 255,907 285,448 U.S. Government securities 136,649 140,749 Operating lease right-of-use asset 266,059 269,029 Prepaid expenses and other assets, net 80,727 68,974 Investment in unconsolidated real estate entity 63,874 64,926 TOTAL ASSETS $ 7,942,001 $ 7,466,568 LIABILITIES AND EQUITY Liabilities Unsecured and secured debt, net $ 3,055,197 $ 2,817,910 In-substance defeased debt 132,560 135,030 Joint venture partner debt 66,136 66,136 Accounts payable, accrued liabilities and other 282,766 212,673 Operating lease liability 270,827 272,701 Lease intangible liabilities, net 23,525 31,493 Security deposits and prepaid rent 75,987 86,188 Total liabilities 3,906,998 3,622,131 Redeemable preferred units of the operating partnership 9,815 9,815 Redeemable non-controlling interest in consolidated real estate entities 126,896 125,260 Equity Hudson Pacific Properties, Inc. stockholders’ equity Common stock, $0.01 par value, 490,000,000 authorized, 152,143,492 shares and 154,691,052 shares outstanding at September 30, 1,522 1,546 2020 and December 31, 2019, respectively Additional paid-in capital 3,233,105 3,415,808 Accumulated other comprehensive loss (12,795) (561) Total Hudson Pacific Properties, Inc. stockholders’ equity 3,221,832 3,416,793 Non-controlling interest—members in consolidated entities 644,924 269,487 Non-controlling interest—units in the operating partnership 31,536 23,082 Total equity 3,898,292 3,709,362 TOTAL LIABILITIES AND EQUITY $ 7,942,001 $ 7,466,568 Page 10 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Consolidated Statements of Operations Unaudited, in thousands, except share data Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 REVENUES Office Rental $ 178,256 $ 179,197 $ 540,023 $ 521,650 Service and other revenues 2,460 6,162 11,428 18,339 Total office revenues 180,716 185,359 551,451 539,989 Studio Rental 11,724 11,086 36,767 38,001 Service and other revenues 3,845 11,117 12,904 23,342 Total studio revenues 15,569 22,203 49,671 61,343 Total revenues 196,285 207,562 601,122 601,332 OPERATING EXPENSES Office operating expenses 66,075 66,969 194,546 188,680 Studio operating expenses 9,034 11,440 27,635 32,088 General and administrative 17,428 17,661 53,943 54,099 Depreciation and amortization 75,052 69,781 222,331 207,892 Total operating expenses 167,589 165,851 498,455 482,759 OTHER (EXPENSE) INCOME (Loss) income from unconsolidated real estate entity (105) (260) 69 (345) Fee income 575 656 1,741 931 Interest expense (32,492) (26,590) (86,839) (77,492) Interest income 1,056 1,002 3,129 3,034 Transaction-related expenses (181) (331) (440) (459) Unrealized gain (loss) on non-real estate investment 513 — (2,335) — Gain on sale of real estate — 47,100 — 47,100 Impairment loss — — — (52,201) Other income (loss) 576 (333) 1,606 (258) Total other (expense) income (30,058) 21,244 (83,069) (79,690) Net (loss) income (1,362) 62,955 19,598 38,883 Net income attributable to preferred units (153) (153) (459) (459) Net income attributable to participating securities (109) (274) (321) (138) Net income attributable to non-controlling interest in consolidated real estate entities (5,170) (3,660) (12,577) (9,798) Net loss attributable to redeemable non-controlling interest in consolidated real estate entities 1,304 347 2,707 1,505 Net loss (income) attributable to non-controlling interest in the operating partnership 54 (460) (89) (225) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (5,436) $ 58,755 $ 8,859 $ 29,768 BASIC AND DILUTED PER SHARE AMOUNTS Net (loss) income attributable to common stockholders—basic $ (0.04) $ 0.38 0.06 0.19 Net (loss) income attributable to common stockholders—diluted $ (0.04) $ 0.38 0.06 0.19 Weighted average shares of common stock outstanding—basic 153,196,007 154,414,452 153,643,278 154,398,466 Weighted average shares of common stock outstanding—diluted 153,196,007 156,498,919 156,030,815 156,400,075 Page 11 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Funds from Operations(1) Unaudited, in thousands, except per share data Three Months Ended Quarter To Date September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 NET (LOSS) INCOME $ (1,362) $ 7,011 $ 13,949 $ 16,963 $ 62,955 Adjustments: Depreciation and amortization—Consolidated 75,052 73,516 73,763 74,196 69,781 Depreciation and amortization—Corporate-related (581) (574) (565) (557) (543) Depreciation and amortization—Company’s Share from unconsolidated real estate entity 1,445 1,355 1,381 1,650 1,751 Gain on sale of real estate — — — — (47,100) Unrealized (gain) loss on non-real estate investment(2) (513) 2,267 581 — — FFO attributable to non-controlling interests (10,725) (6,801) (7,093) (7,544) (7,463) FFO attributable to preferred units (153) (153) (153) (153) (153) FFO to common stockholders and unitholders 63,163 76,621 81,863 84,555 79,228 Specified items impacting FFO: Transaction-related expenses 181 157 102 208 331 One-time straight-line rent reserve — — 2,620 — — One-time debt extinguishment cost 2,654 — — 601 — FFO (EXCLUDING SPECIFIED ITEMS) TO COMMON $ $ $ $ $ STOCKHOLDERS AND UNITHOLDERS 65,998 76,778 84,585 85,364 79,559 Weighted average common stock/units outstanding—diluted 154,774 155,013 157,501 156,229 156,011 FFO per common stock/unit—diluted $ 0.41 $ 0.49 $ 0.52 $ 0.54 $ 0.51 FFO (excluding specified items) per common stock/unit—diluted $ 0.43 $ 0.50 $ 0.54 $ 0.55 $ 0.51 Page 12 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Funds from Operations (continued) Unaudited, in thousands, except per share data Nine Months Six Months Three Months Twelve Months Nine Months Ended Ended Ended Ended Ended Year To Date September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 NET INCOME $ 19,598 $ 20,960 $ 13,949 $ 55,846 $ 38,883 Adjustments: Depreciation and amortization—Consolidated 222,331 147,279 73,763 282,088 207,892 Depreciation and amortization—Corporate-related (1,720) (1,139) (565) (2,153) (1,596) Depreciation and amortization—Company’s Share from unconsolidated real estate entity 4,181 2,736 1,381 3,964 2,314 Gain on sale of real estate — — — (47,100) (47,100) Impairment loss — — — 52,201 52,201 Unrealized loss on non-real estate investment(2) 2,335 2,848 581 — — FFO attributable to non-controlling interests (24,619) (13,894) (7,093) (28,576) (21,032) FFO attributable to preferred units (459) (306) (153) (612) (459) FFO to common stockholders and unitholders 221,647 158,484 81,863 315,658 231,103 Specified items impacting FFO: Transaction-related expenses 440 259 102 667 459 One-time straight-line rent reserve 2,620 2,620 2,620 — — One-time debt extinguishment cost 2,654 — — 744 143 FFO (EXCLUDING SPECIFIED ITEMS) TO COMMON $ $ $ $ $ STOCKHOLDERS AND UNITHOLDERS 227,361 161,363 84,585 317,069 231,705 Weighted average common stock/units outstanding—diluted 155,422 155,908 157,501 156,113 155,912 FFO per common stock/unit—diluted $ 1.43 $ 1.02 $ 0.52 $ 2.02 $ 1.48 FFO (excluding specified items) per common stock/unit—diluted $ 1.46 $ 1.03 $ 0.54 $ 2.03 $ 1.49 (1) See definitions starting on page 54. (2) We recognized a $0.5 million unrealized gain and $2.3 million net unrealized loss on an unconsolidated non-real estate investment accounted for using the cost method approach during the three and nine months ended September 30, 2020, respectively. Page 13 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Adjusted Funds from Operations(1) Unaudited, in thousands Three Months Ended Quarter To Date September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 FFO $ 63,163 $ 76,621 $ 81,863 $ 84,555 $ 79,228 Adjustments: GAAP non-cash revenue (straight-line rent and above/below-market ) ) ) ) ) rents) (5,230 (14,330 (15,884 (15,344 (12,097 GAAP non-cash expense (straight-line rent expense and above/ below-market ground rent) 827 826 826 853 853 Amortization of deferred financing costs and loan discounts/ premiums, net 4,361 1,281 1,283 1,875 1,428 Recurring capital expenditures, tenant improvements and lease ) ) ) ) ) commissions (19,922 (20,980 (24,144 (35,205 (28,459 Non-cash compensation expense 4,791 4,723 4,895 4,088 5,176 AFFO $ 47,990 $ 48,141 $ 48,839 $ 40,822 $ 46,129 Dividends paid to common stock and unitholders $ 38,853 $ 38,890 $ 38,883 $ 39,129 $ 39,132 AFFO payout ratio 81.0 % 80.8% 79.6% 95.9% 84.8% Nine Months Six Months Three Months Twelve Months Nine Months Ended Ended Ended Ended Ended Year To Date September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 FFO $ 221,647 $ 158,484 $ 81,863 $ 315,658 $ 231,103 Adjustments: GAAP non-cash revenue (straight-line rent and above/below-market ) ) ) ) ) rents) (35,444 (30,214 (15,884 (58,891 (43,547 GAAP non-cash expense (straight-line rent expense and above/ below-market ground rent) 2,479 1,652 826 3,412 2,559 Amortization of deferred financing costs and loan discounts/ premiums, net 6,925 2,564 1,283 6,324 4,449 Recurring capital expenditures, tenant improvements and lease ) ) ) ) ) commissions (65,046 (45,124 (24,144 (145,119 (109,914 Non-cash compensation expense 14,409 9,618 4,895 19,481 15,393 AFFO $ 144,970 $ 96,980 $ 48,839 $ 140,865 $ 100,043 Dividends paid to common stock and unitholders $ 116,626 $ 77,773 $ 38,883 $ 157,825 $ 118,696 AFFO payout ratio 80.4 % 80.2% 79.6% 112.0% 118.6% (1) See definitions starting on page 54. Page 14 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Same-Store Property Performance—Consolidated(1) Unaudited, in thousands, except number of properties and square feet SAME-STORE STATISTICS Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE OFFICE STATISTICS(2)(3) Number of properties 40 40 39 39 Rentable square feet 10,294,401 10,294,401 10,191,438 10,191,438 Ending % leased 93.9% 96.7% (2.8)% 93.9% 96.7% (2.8)% Ending % occupied 93.1% 95.3% (2.2)% 93.1% 95.3% (2.2)% Average % occupied for the period 93.3% 95.6% (2.3)% 94.2% 94.6% (0.4)% SAME-STORE STUDIO STATISTICS(4) Number of properties 3 3 3 3 Rentable square feet 1,224,403 1,224,403 1,224,403 1,224,403 Average % occupied for the period(5) 91.3% N/A (6) N/A 91.3% N/A (6) N/A SAME-STORE ANALYSIS—NET OPERATING INCOME Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME(7) Total office revenues $ 153,888 (8) $ 163,964 (6.1)% $ 469,097 (8) $ 474,789 (1.2)% Total studio revenues 15,569 22,203 (29.9) 49,671 61,343 (19.0) Same-store revenues 169,457 186,167 (9.0) 518,768 536,132 (3.2) Total office expenses 55,559 55,723 (0.3) 162,045 155,548 (9) 4.2 Total studio expenses 9,034 11,440 (21.0) 27,635 32,088 (13.9) Same-store expenses 64,593 67,163 (3.8) 189,680 187,636 1.1 Same-store office net operating income 98,329 108,241 (9.2) 307,052 319,241 (3.8) NOI margin 63.9% 66.0% (2.1) 65.5% 67.2% (1.7) Same-store studio net operating income 6,535 10,763 (39.3) 22,036 29,255 (24.7) NOI margin 42.0% 48.5% (6.5) 44.4% 47.7% (3.3) TOTAL SAME-STORE NET OPERATING INCOME $ 104,864 $ 119,004 (11.9)% $ 329,088 $ 348,496 (5.6)% NOI margin 61.9% 63.9% (2.0) 63.4% 65.0% (1.6) Page 15 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Same-Store Property Performance—Consolidated(1) (continued) Unaudited, in thousands, except number of properties and square feet SAME-STORE ANALYSIS—NET OPERATING INCOME (CASH BASIS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME (CASH BASIS) Total office cash revenues $ 150,128 (10) $ 152,447 (1.5)% $ 444,837 (10) $ 436,134 2.0 % Total studio cash revenues 15,323 21,998 (30.3) 48,612 60,478 (19.6) Same-store cash revenues 165,451 174,445 (5.2) 493,449 496,612 (0.6) Total office cash expenses 54,606 54,771 (0.3) 159,188 152,693 (9) 4.3 Total studio cash expenses 9,004 11,440 (21.3) 27,605 32,088 (14.0) Same-store cash expenses 63,610 66,211 (3.9) 186,793 184,781 1.1 Same-store office net operating income (cash basis) 95,522 97,676 (2.2) 285,649 283,441 0.8 NOI margin 63.6% 64.1% (0.5) 64.2% 65.0% (0.8) Same-store studio net operating income (cash basis) 6,319 10,558 (40.1) 21,007 28,390 (26.0) NOI margin 41.2% 48.0% (6.8) 43.2% 46.9% (3.7) SAME-STORE NET OPERATING INCOME (CASH BASIS) $ 101,841 $ 108,234 (5.9)% $ 306,656 $ 311,831 (1.7)% NOI margin 61.6% 62.0% (0.4) 62.1% 62.8% (0.7) (1) The consolidated same-store property performance excludes the impact of our unconsolidated joint venture, Bentall Centre. (2) Same-store office for the three months ended September 30, 2020 defined as all properties owned and included in our stabilized office portfolio as of July 1, 2019 and still owned and included in the stabilized office portfolio as of September 30, 2020. Same-store office for the nine months ended September 30, 2020 defined as all properties owned and included in our stabilized office portfolio as of January 1, 2019 and still owned and included in the stabilized office portfolio as of September 30, 2020. (3) See pages 27 and 28 for same-store office properties. (4) Same-store studio for the three months ended September 30, 2020 defined as all properties owned and included in our studio portfolio as of July 1, 2019 and still owned and included in our studio portfolio as of September 30, 2020. Same-store studio for the nine months ended September 30, 2020 defined as all properties owned and included in our studio portfolio as of January 1, 2019 and still owned and included in our studio portfolio as of September 30, 2020. (5) Percent occupied for same-store studio is the average percent occupied for the 12 months ended September 30, 2020. (6) Trailing 12-month occupancy is not applicable for 11,200 square feet at 6660 Santa Monica Boulevard during the three months or nine months ended September 30, 2019 as the property was acquired in fourth quarter 2018. (7) See page 56 for the reconciliation of net (loss) income to net operating income (NOI). (8) Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves of accrued straight-line rent receivables totaling $1.2 million and $3.7 million, respectively. Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves against uncollected cash rents totaling $2.5 million and $4.6 million, respectively. (9) Same-store office for the nine months ended September 30, 2019 included a one-time prior year property tax savings at Rincon Center and 275 Brannan for $3.2 million. (10) Same-store office cash revenues for the three months and nine months ended September 30, 2020 reflects (does not include) contractually deferred rents (net of amounts paid back) of approximately $1.3 million and $4.8 million, respectively. Adjusted for the deferred rents, consolidated same store office net operating income (cash basis) would have been (0.8)% and 2.5% for the three months and nine months ended September 30, 2020, respectively. Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves against uncollected cash rents totaling $2.5 million and $4.6 million, respectively. Page 16 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 (1) Same-Store Property Performance—Company’s Share Unaudited, in thousands, except number of properties and square feet SAME-STORE STATISTICS Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE OFFICE STATISTICS(2)(3) Number of properties 38 38 36 36 Rentable square feet 9,340,919 9,340,919 8,940,565 8,940,565 Ending % leased 93.3% 96.3% (3.0)% 93.1% 96.3% (3.2)% Ending % occupied 92.4% 94.7% (2.3)% 92.2% 94.7% (2.5)% Average % occupied for the period 93.3% 95.4% (2.1)% 93.8% 94.3% (0.5)% SAME-STORE ANALYSIS—NET OPERATING INCOME Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME(4) Total office revenues $ 134,945 (5) $ 142,899 (5.6)% $ 399,630 (5) $ 404,349 (1.2)% Same-store revenues 134,945 142,899 (5.6) 399,630 404,349 (1.2) Total office expenses 48,754 48,892 (0.3) 139,769 133,819 (6) 4.4 Same-store expenses 48,754 48,892 (0.3) 139,769 133,819 4.4 TOTAL SAME-STORE NET OPERATING INCOME $ 86,191 $ 94,007 (8.3)% $ 259,861 $ 270,530 (3.9)% NOI margin 63.9% 65.8% (1.9) 65.0% 66.9% (1.9) SAME-STORE ANALYSIS—NET OPERATING INCOME (CASH BASIS) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME (CASH BASIS) Total office cash revenues $ 132,628 (7) $ 133,659 (0.8)% $ 383,771 (7) $ 377,171 1.7% Same-store cash revenues 132,628 133,659 (0.8) 383,771 377,171 1.7 Total office cash expenses 47,930 48,063 (0.3) 137,311 131,346 (6) 4.5 Same-store cash expenses 47,930 48,063 (0.3) 137,311 131,346 4.5 SAME-STORE NET OPERATING INCOME (CASH BASIS) $ 84,698 $ 85,596 (1.0)% $ 246,460 $ 245,825 0.3% NOI margin 63.9% 64.0% (0.1) 64.2% 65.2% (1.0) Page 17 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 (1) Same-Store Property Performance—Company’s Share (continued) Unaudited, in thousands, except number of properties and square feet (1) On July 30, 2020, funds affiliated with Blackstone Property Partners acquired a 49% interest in our three Hollywood studios (Sunset Gower, Sunset Bronson and Sunset Las Palmas Studios) and five office properties (6040 Sunset, ICON, CUE, EPIC and Harlow). We retained a 51% ownership stake. Based on the change in our ownership percentage, these properties have been omitted from the Company’s Share of same-store population for the three months and nine months ended September 30, 2020. Included as part of the Company’s Share of same- store population for the three months ended September 30, 2020 is our unconsolidated joint venture, Bentall Centre, that was acquired during second quarter 2019. (2) Same-store office for the three months ended September 30, 2020 defined as the Company’s Share of all properties owned and included in our stabilized office portfolio as of July 1, 2019 and still owned and included in the stabilized office portfolio as of September 30, 2020. Same-store office for the nine months ended September 30, 2020 defined as the Company’s Share of all properties owned and included in our studio portfolio as of January 1, 2019 and still owned and included in our studio portfolio as of September 30, 2020. (3) See pages 27 and 28 for same-store office properties. (4) See page 57 for the reconciliation of net (loss) income to net operating income (NOI). (5) Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves of accrued straight-line rent receivables totaling $1.2 million and $3.7 million, respectively. Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves against uncollected cash rents totaling $1.9 million and $3.9 million, respectively. (6) Same-store office for the nine months ended September 30, 2019 included a one-time prior year property tax savings at Rincon Center and 275 Brannan for $3.2 million. (7) Same-store office cash revenues for the three months and nine months ended September 30, 2020 reflects (does not include) contractually deferred rents of approximately $0.8 million and $3.8 million, respectively. Adjusted for the deferred rents, same store office net operating income (cash basis) would have been (0.1)% and 1.8% for the three months and nine months ended September 30, 2020, respectively. Same-store office revenues for the three months and nine months ended September 30, 2020 includes reserves against uncollected cash rents totaling $1.9 million and $3.9 million, respectively Page 18 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Net Operating Income Detail (NOI) Three Months Ended September 30, 2020 | Unaudited, in thousands Repositioning/ Same-Store Same-Store Non-Same- Redevelopment Office Studio Store Office /Development Lease-Up Sold/Other Total Properties(1) Properties(2) Properties(3) Properties(4) Properties(3) Properties Properties REVENUE Cash rent $ 122,395 $ 11,213 $ 10,255 $ — $ 10,640 $ — $ 154,503 Cash tenant recoveries 25,577 265 1,016 (15) 1,603 — 28,446 Straight-line rent 1,870 255 3,919 — (997) — 5,047 Amortization of above-market and below-market 2,330 (6) 84 — 42 — 2,450 leases, net Amortization of lease incentive costs (440) (3) — — (23) — (466) Total rental revenue(5) 151,732 11,724 15,274 (15) 11,265 — 189,980 Service and other revenues 2,156 3,845 84 — 97 123 6,305 Total revenue 153,888 15,569 15,358 (15) 11,362 123 196,285 OPERATING EXPENSES Property operating expenses 54,606 9,004 5,222 8 5,281 — 74,121 Straight-line rent 365 — — — — — 365 Non-cash portion of interest expense 2 30 2 1 — — 35 Amortization of above-market and below-market 586 — — — 2 — 588 ground leases, net Total operating expenses 55,559 9,034 5,224 9 5,283 — 75,109 TOTAL CONSOLIDATED NOI(5) $ 98,329 $ 6,535 $ 10,134 $ (24) $ 6,079 $ 123 $ 121,176 COMPANY’S SHARE OF NOI FROM — — 2,602 (6) — — — 2,602 UNCONSOLIDATED REAL ESTATE ENTITY TOTAL NOI ATTRIBUTABLE TO 9,609 (7) 2,319 (8) 1,370 (9) (2) (10) — — 13,296 NON-CONTROLLING INTERESTS Square feet(11) 10,294,401 1,224,403 1,128,004 1,005,566 955,679 — 14,608,053 Ending % leased 93.9% 91.3% 95.4% 58.1% 79.2% —% 90.4% Ending % occupied 93.1% 91.3% 94.0% —% 79.2% —% 85.7% NOI margin 63.9% 42.0% 66.0% 160.0% 53.5% 100.0% 61.7% RECONCILIATION TO CASH NOI TOTAL NOI $ 98,329 $ 6,535 $ 10,134 $ (24) $ 6,079 $ 123 $ 121,176 Straight-line rent, net (1,505) (255) (3,919) — 997 — (4,682) Non-cash portion of interest expense 2 30 2 1 — — 35 Amortization of above-market and below-market (2,330) 6 (84) — (42) — (2,450) leases, net Amortization of lease incentive costs 440 3 — — 23 — 466 Amortization of above-market and below-market 586 — — — 2 — 588 ground leases, net TOTAL CONSOLIDATED CASH NOI $ 95,522 $ 6,319 $ 6,133 $ (23) $ 7,059 $ 123 $ 115,133 COMPANY’S SHARE OF CASH NOI FROM — — 1,568 (6) — — — 1,568 UNCONSOLIDATED REAL ESTATE ENTITY TOTAL CASH NOI ATTRIBUTABLE TO NON- 8,657 (7) 2,314 (8) 246 (9) (1) (10) — — 11,216 CONTROLLING INTERESTS Page 19 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Net Operating Income Detail (NOI) (continued) (1) See pages 27 and 28 for same-store office for the three months ended September 30, 2020. The consolidated same-store property performance in this table excludes the impact of our unconsolidated joint venture, Bentall Centre. (2) Same-store studio includes Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. (3) See page 28 for non-same-store office and lease-up properties. (4) See page 34 for repositioning, redevelopment, development and held for sale properties. (5) See page 56 and 57 for all non-GAAP NOI reconciliations. (6) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. The amounts reflected have been converted from Canadian Dollars (“CAD”) to United States Dollars (“USD”) using the average monthly foreign currency exchange rate for the period presented. (7) We own 55% of the ownership interest in the consolidated joint venture that owns 1455 Market, Hill7 and Ferry Building. We own 51% of the ownership interest in the consolidated joint venture that owns 6040 Sunset, ICON and CUE. (8) We own 51% of the ownership interest in the consolidated joint venture that owns Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. (9) We own 75% of the ownership interest in the consolidated joint venture that owns 10850 Pico. We own 51% of the ownership interest in the consolidated joint venture that owns EPIC. (10) We own 51% of the ownership interest in the consolidated joint venture that owns Harlow. We own 75% of the ownership interest in the consolidated joint venture that owns One Westside. (11) Represents 100% ownership of our consolidated portfolio. Excludes square footage related to our unconsolidated joint venture, Bentall Centre. Page 20 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Debt Summary As of September 30, 2020 | Unaudited, in thousands Unsecured revolving credit facility Principal Contractual Annual Debt Balance at Amount(1) Interest Rate(2)(3) Maturity Date(4) Service(1) Maturity Capacity Undrawn Capacity Unsecured revolving credit facility $ — LIBOR + 1.05% to 1.50% 3/13/2022 $ — $ — $ 600,000 $ 600,000 Unsecured private placement Principal Contractual Annual Debt Balance at Amount(1) Interest Rate(2) Maturity Date Service(1) Maturity Series A notes $ 110,000 4.34% 1/2/2023 $ 4,774 $ 110,000 Series B notes 259,000 4.69% 12/16/2025 12,147 259,000 Series C notes 56,000 4.79% 12/16/2027 2,682 56,000 Series D notes 150,000 3.98% 7/6/2026 5,970 150,000 Series E notes 50,000 3.66% 9/15/2023 1,830 50,000 TOTAL $ 625,000 $ 27,403 $ 625,000 Unsecured registered senior notes Principal Contractual Annual Debt Balance at Issuance Issue Price as Effective Amount(1) Interest Rate(2) Maturity Date Service(1) Maturity Date Percentage of Par Yield 3.95% Registered senior notes $ 400,000 3.95% 11/1/2027 $ 15,800 $ 400,000 10/2/2017 99.815% 3.97% 4.65% Registered senior notes(5) 350,000 4.65% 4/1/2029 16,275 350,000 2/27/2019 98.663% 4.82% 4.65% Registered senior notes(5) 150,000 4.65% 4/1/2029 6,975 150,000 6/14/2019 104.544% 4.12% 3.25% Registered senior notes 400,000 3.25% 1/15/2030 13,000 400,000 10/3/2019 99.268% 3.46% TOTAL $ 1,300,000 $ 52,050 $ 1,300,000 Secured notes Principal Contractual Annual Debt Balance at Company’s Amount(1) Interest Rate(2) Maturity Date Service(1) Maturity Share Undrawn Capacity Hollywood Media Portfolio(7) $ 900,000 LIBOR + 2.15% 8/9/2022 $ — $ 900,000 $ 459,000 $ — Acquired Hollywood Media (107,814) LIBOR + 3.31% 8/9/2022 — (107,814) (107,814) — Portfolio debt(7) Hollywood Media Portfolio, net 792,186 — 792,186 351,186 — 10950 Washington(6) 25,871 5.32% 3/11/2022 2,003 24,981 25,871 — One Westside and 10850 Pico 75,111 LIBOR + 1.70% 12/18/2023 — 75,111 56,333 339,489 Element LA 168,000 4.59% 11/6/2025 7,716 168,000 168,000 — Hill7(8) 101,000 3.38% 11/6/2028 3,414 101,000 55,550 — TOTAL $ 1,162,168 $ 13,133 $ 1,161,278 $ 656,940 $ 339,489 Page 21 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Debt Summary (continued) As of September 30, 2020 | Unaudited, in thousands Other consolidated debt (1) (2) Contractual Maturity (1) Principal Amount Interest Rate Date Annual Debt Service Balance at Maturity Company’s Share In-substance defeased debt(9) $ 132,560 4.47% 10/1/2022 $ 9,391 $ 125,489 $ 99,420 Joint venture debt(10) $ 66,136 4.50% 10/9/2028 $ 2,976 $ 66,136 $ — Unconsolidated debt (1) (2) Contractual Maturity (1) Principal Amount Interest Rate Date Annual Debt Service Balance at Maturity Company’s Share Bentall Centre(11) $ 476,138 CDOR + 1.75% 7/1/2024 $ — $ 476,138 $ 95,228 (1) See definitions starting on page 54. (2) Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. (3) We have an option to make an irrevocable election to change the interest rate depending on our credit rating or a specified base rate plus an applicable margin. As of September 30, 2020, no such election had been made. (4) The maturity date may be extended once for an additional one-year term. (5) The 4.65% registered senior notes serve as a part of one series under a single indenture. (6) Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. (7) We own 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. On July 30, 2020, the joint venture closed a $900.0 million mortgage loan secured by the Hollywood Media Portfolio. This loan has an initial term of two years from the first payment date, with three one-year extension options, subject to certain requirements. The Company and Blackstone purchased bonds comprising the loan in the amounts of $107.8 million and $12.5 million, respectively. We repaid Term loans B ($350.0 million) and D ($125.0 million) and instead of terminating the interest rate swaps on these loans, the swaps were designated under a first payments approach within hedge accounting, rather than a specific piece of debt. Therefore, the interest rate on the outstanding balance has been effectively fixed through the use of interest rate swaps. As of September 30, 2020 fixed LIBOR was 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the Hollywood Media Portfolio loan, respectively. (8) We own 55% of the ownership interest in the consolidated joint venture that owns Hill7. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. The balance at maturity above excludes principal amortization. (9) We own 75% of the ownership interest in the consolidated joint venture that owns One Westside and 10850 Pico. The joint venture has, in substance, defeased the debt by purchasing U.S. Government securities, which are intended to generate cash flows to fund loan obligations through the early prepayment date of the debt. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. (10) This amount relates to debt attributable to Allianz U.S. Private REIT LP (“Allianz”), our partner in the joint venture that owns Ferry Building. The maturity date may be extended twice for an additional two-year term each. (11) We own 20% of the ownership interest in the unconsolidated real estate investment that owns Bentall Centre.The loan was transacted in CAD. The principal balance shown is in USD using the foreign currency exchange rate as of September 30, 2020. The interest on the full amount has been effectively capped at 5.25% per annum through the use of an interest rate cap. Page 22 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Capital Structure As of September 30, 2020 | Unaudited, in thousands, except share data and percentages Aggregate Principal Amount or $ Shares/Units Equivalent Unsecured private placement $ 625,000 Unsecured registered senior notes 1,300,000 Secured debt 1,162,168 Total Consolidated unsecured and secured debt(1) $ 3,087,168 Add: Series A preferred units 392,598 9,815 Total Consolidated debt(1) $ 3,096,983 Less: Cash and cash equivalents (365,294) Total Consolidated debt, net(1) $ 2,731,689 Add: Company’s share of unconsolidated real estate entity debt(2) 95,228 Less: Partner’s share of consolidated debt(3) (505,228) Less: Company’s share of unconsolidated real estate entity cash and cash equivalents (3,510) Add: Partner’s share of cash and cash equivalents 23,423 Company’s share of debt, net(1) $ 2,341,602 EQUITY Common stock 152,143,492 $ 3,336,507 Operating partnership units 911,858 19,997 Restricted stock and units 1,045,254 22,922 Dilutive shares(1) 666,000 14,605 TOTAL EQUITY 154,766,604 $ 3,394,031 (4) CONSOLIDATED MARKET CAPITALIZATION(1) $ 6,491,014 COMPANY’S SHARE OF MARKET CAPITALIZATION(1) $ 6,081,014 CONSOLIDATED DEBT, NET/CONSOLIDATED MARKET CAPITALIZATION 42.1% COMPANY’S SHARE OF DEBT, NET/COMPANY’S SHARE OF MARKET CAPITALIZATION 38.5% (1) See definitions starting on page 54. (2) Amount is calculated based on our percentage ownership interest in our unconsolidated joint venture entity. The amounts reflected have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (3) Amount is calculated based on the outside partner’s percentage ownership interest in the consolidated joint venture entities. (4) Amount is calculated based on September 30, 2020 closing price at $21.93 per share of common stock. Page 23 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Unsecured and Secured Debt Maturities, Composition and Covenant Compliance Unaudited, in thousands DEBT COMPOSITION DEBT COVENANT COMPLIANCE Weighted Average Actual % of Total Interest Years to Covenant Performance Amount Debt Rate(2) Maturity UNSECURED REVOLVING CREDIT FACILITY, TERM LOAN AND PRIVATE PLACEMENT(6) COMPANY’S SHARE OF SECURED AND UNSECURED DEBT(1) Total liabilities to total asset value ≤ 60% 35.6% Unsecured debt $ 1,925,000 71.9% 4.1% 7.2 Secured debt(3) 752,168 28.1 3.0% 3.3 Unsecured indebtedness to unencumbered asset value ≤ 60% 37.5% TOTAL $ 2,677,168 100.0% Adjusted EBITDA to fixed charges ≥ 1.5x 3.4x Secured indebtedness to total asset value ≤ 45% 15.1% COMPANY’S SHARE OF FLOATING AND FIXED-RATE DEBT Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.0x Floating-rate debt $ 151,561 5.7% 2.1% 3.5 UNSECURED REGISTERED SENIOR NOTES(7) Fixed-rate debt(3) 4) 2,525,607 94.3 3.9% 6.2 Debt to total assets ≤ 60% 40.1% TOTAL $ 2,677,168 100.0% Total unencumbered assets to unsecured debt ≥ 150% 286.9% Weighted average stated interest rate(2) 3.8% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x GAAP effective rate including unamortized deferred 4.0% financing costs and loan discounts/premiums(5) Secured debt to total assets ≤ 45% 15.8% Page 24 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Unsecured and Secured Debt Maturities, Composition and Covenant Compliance (continued) (1) Includes the Company’s Share of principal amortization and maturities, based on contractual maturity dates, excluding: (i) in-substance defeased debt related to One Westside and 10850 Pico, (ii) unamortized deferred financing costs and loan discounts/premiums, and (iii) debt due to Allianz, our partner in the joint venture that owns Ferry Building. The Bentall Centre loan was transacted in CAD; the amounts reflected are shown in USD using the foreign currency exchange rate as of September 30, 2020. (2) Rates as of September 30, 2020 include fixed-rate loans and variable-rate loans with effective fixed-rate as a result of derivative instruments on the full principal balance. Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rate for the unsecured revolving credit facility includes the LIBOR rate as of September 30, 2020. (3) On July 30, 2020 we closed a $900.0 million mortgage loan secured by the Hollywood Media Portfolio. We own 51% of the ownership interest in the consolidated joint venture that owns the Hollywood Media Portfolio. In addition, we purchased $107.8 million in bonds making up the Hollywood Media Portfolio loan. We repaid Term loans B ($350.0 million) and D ($125.0 million) and instead of terminating the interest rate swaps on these loans, the swaps were designated under a first payments approach within hedge accounting, rather than of a specific piece of debt. Therefore, the interest rate on the outstanding balance has been effectively fixed through the use of interest rate swaps. As of September 30, 2020 fixed LIBOR was 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the Hollywood Media Portfolio loan, respectively. (4) Includes instruments of fixed-rate debt and effective fixed-rate debt as a result of derivative instruments on the full principal balance. (5) Rates are as of September 30, 2020 and include deferred financing costs and loan discounts/premiums. (6) In November 2015 and July 2016, the operating partnership entered into private placement of debt. In March 2018, the operating partnership entered into an amended and restated credit agreement (the “Facility”), which modified terms related to its unsecured revolving credit facility and term loans. The table summarizes the existing covenants of these agreements and their covenant levels, when considering the most restrictive terms. The covenant and actual performance metrics above represent terms and definitions reflected in the Facility based on the financial results as of September 30, 2020. As of September 30, 2020, the operating partnership was in compliance with both the prior amended and restated credit agreements and the Facility. (7) In October 2017, the operating partnership completed an underwritten public offering of senior notes (the “3.95% Senior Notes”). On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of 4.65% Senior Notes, which were issued at 98.663% of par. On June 14, 2019, the operating partnership completed an underwritten public offering of $150.0 million of additional 4.65% Senior Notes, which were issued at a premium at 103.544% of par. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of September 30, 2020. As of September 30, 2020, the operating partnership was in compliance with such indentures Page 25 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Operational and Portfolio Information
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 In-Service Office Properties(1) Annualized Square Percent Percent Annualized Base Rent Per Submarket Feet(2) Occupied(3) Leased(3) Base Rent(4) Square Foot(4) SAME-STORE(5) Vancouver, British Columbia Bentall Centre(6) Downtown Vancouver 1,486,957 97.0% 98.2% $ 37,975,829 $ 26.34 Subtotal 1,486,957 97.0 98.2 37,975,829 26.34 Greater Seattle, Washington Northview Center Lynnwood 182,009 63.6 63.6 2,721,262 23.51 Met Park North Denny Triangle 183,355 100.0 100.0 5,620,644 30.65 Hill7(7) Denny Triangle 285,310 99.5 99.5 11,064,507 38.98 450 Alaskan Pioneer Square 170,974 95.4 95.4 6,590,268 40.41 411 First Pioneer Square 163,768 88.6 89.6 5,067,836 34.94 505 First Pioneer Square 288,009 100.0 100.0 7,109,904 24.69 83 King Pioneer Square 183,939 91.5 91.5 7,201,594 42.79 Subtotal 1,457,364 92.5 92.6 45,376,015 33.68 San Francisco Bay Area, California 1455 Market(7) San Francisco 1,034,977 99.3 99.3 53,575,075 52.14 275 Brannan San Francisco 57,120 100.0 100.0 4,646,712 81.35 625 Second San Francisco 138,094 100.0 100.0 8,398,980 60.82 875 Howard San Francisco 286,003 99.9 99.9 15,144,476 53.01 901 Market San Francisco 205,530 100.0 100.0 12,760,943 62.09 Rincon Center(8) San Francisco 543,970 89.2 95.6 28,990,013 59.72 Ferry Building(7) San Francisco 268,018 95.1 95.1 22,995,289 90.24 Towers at Shore Center Redwood Shores 334,483 89.0 91.1 21,209,303 71.25 Skyway Landing Redwood Shores 247,173 97.1 97.1 12,767,623 53.18 555 Twin Dolphin Redwood Shores 198,936 86.1 86.1 10,775,315 62.93 Palo Alto Square Palo Alto 333,254 88.1 88.1 26,467,065 90.11 3176 Porter Palo Alto 42,899 100.0 100.0 3,290,983 76.71 3400 Hillview Palo Alto 207,857 100.0 100.0 14,571,358 70.10 Clocktower Square Palo Alto 100,344 44.7 63.8 4,043,832 90.16 Foothill Research Center Palo Alto 195,385 100.0 100.0 14,291,460 73.15 Page Mill Center(9) Palo Alto 94,542 82.4 82.4 6,074,841 77.94 Page Mill Hill Palo Alto 182,676 92.5 92.5 12,817,769 75.85 Gateway North San Jose 609,093 87.4 88.6 21,918,279 41.17 1740 Technology North San Jose 206,879 99.5 99.5 8,586,766 41.71 Concourse North San Jose 944,386 91.8 91.8 34,030,009 39.24 Skyport Plaza North San Jose 418,086 96.2 96.2 15,394,446 38.27 Techmart Santa Clara 284,440 84.6 84.6 12,252,779 50.92 Subtotal 6,934,145 92.9 93.9 365,003,316 56.65 Los Angeles, California 6922 Hollywood Hollywood 202,528 72.3 77.2 7,543,790 51.50 6040 Sunset(10) Hollywood 114,958 100.0 100.0 6,414,656 55.80 Page 27 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 In-Service Office Properties(1) (continued) Annualized Square Percent Percent Annualized Base Rent Per Submarket Feet(2) Occupied(3) Leased(3) Base Rent(4) Square Foot(4) ICON(10) Hollywood 326,792 100.0 100.0 19,492,518 59.65 CUE(10) Hollywood 94,386 100.0 100.0 5,694,229 60.33 Maxwell(11) Downtown Los Angeles 102,963 94.8 94.8 — — 604 Arizona West Los Angeles 44,260 100.0 100.0 3,129,220 70.70 3401 Exposition West Los Angeles 63,376 100.0 100.0 3,042,108 48.00 10900 Washington West Los Angeles 9,919 100.0 100.0 448,736 45.24 10950 Washington West Los Angeles 159,198 100.0 100.0 7,133,760 44.81 11601 Wilshire West Los Angeles 500,475 90.3 90.7 21,063,211 46.60 Element LA West Los Angeles 284,037 100.0 100.0 17,343,691 61.06 Subtotal 1,902,892 94.2 94.8 91,305,919 50.92 Total same-store 11,781,358 93.6 94.4 539,661,079 48.95 NON-SAME-STORE San Francisco Bay Area, California Metro Plaza(12) North San Jose 408,594 90.9 92.8 15,744,013 42.39 Shorebreeze Redwood Shores 230,932 90.5 90.5 13,230,222 63.32 Subtotal 639,526 90.7 91.9 28,974,235 49.93 Los Angeles, California EPIC(10) Hollywood 301,127 100.0 100.0 20,597,087 68.40 Fourth & Traction Downtown Los Angeles 131,701 93.5 100.0 5,383,660 43.74 10850 Pico(13) West Los Angeles 55,650 100.0 100.0 2,179,567 39.17 Subtotal 488,478 98.2 100.0 28,160,314 58.68 Total non-same-store 1,128,004 94.0 95.4 57,134,549 53.89 Total Stabilized 12,909,362 93.6 94.5 596,795,628 49.38 Company’s Share of Total Stabilized 10,580,889 92.7 93.6 500,857,121 51.09 LEASE-UP Greater Seattle, Washington 95 Jackson Pioneer Square 35,904 74.3 74.3 1,077,904 40.43 Subtotal 35,904 74.3 74.3 1,077,904 40.43 San Francisco Bay Area, California Metro Center Foster City 736,986 79.6 79.6 34,866,158 59.41 333 Twin Dolphin Redwood Shores 182,789 78.6 78.6 8,113,967 56.46 Subtotal 919,775 79.4 79.4 42,980,125 58.83 Total lease-up 955,679 79.2 79.2 44,058,029 58.18 TOTAL IN-SERVICE 13,865,041 92.6% 93.5% $ 640,853,657 $ 49.90 (14) COMPANY’S SHARE OF TOTAL 11,536,568 91.5% 92.4% $ 544,915,150 $ 51.60 (15) IN-SERVICE Page 28 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 In-Service Office Properties(1) (continued) (1) In-service office excludes the land, repositioning, redevelopment, development and held for sale properties described on pages 33 and 34. We define lease-up properties as office properties that have not yet reached 92.0% occupancy since the date acquired or placed under redevelopment or development. (2) Square footage for office properties determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing. (3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of September 30, 2020, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases. (4) Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of September 30, 2020, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of September 30, 2020. Annualized base rent does not reflect tenant reimbursements. (5) Defined as all properties owned and included in our stabilized office portfolio as of July 1, 2019 and still owned and included in the stabilized office portfolio as of September 30, 2020. (6) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. Annualized base rent and rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (7) We own 55% of the ownership interest in the consolidated joint ventures that own Hill7, 1455 Market and Ferry Building. (8) 20,047 square feet at Rincon Center was taken off-line for repositioning as of third quarter 2019. An additional 1,935 square feet was take off-line for repositioning as of third quarter 2020. (9) 63,201 square feet at Page Mill Center was taken off-line for repositioning as of first quarter 2020. This space was re-measured during second quarter 2020 to 64,038 square feet. An additional 15,018 square feet was take off-line for repositioning as of third quarter 2020. (10) We own 51% of the ownership interest in the consolidated joint venture that owns 6040 Sunset, ICON, CUE and EPIC. (11) We entered into an agreement with WeWork Companies Inc. stipulating that the tenant shall pay substitution rent in an amount equal to 70% of net revenues actually received during each full calendar month for the remainder of the lease term in lieu of paying monthly base rent. We reserve the option to terminate this lease in its entirety or as to a full floor of the premises at any time by providing a minimum 60 days’ written notice. (12) 17,624 square feet at Metro Plaza was taken off-line for repositioning as of fourth quarter 2019. An additional 30,851 square feet was taken off-line for repositioning as of first quarter 2020. The total repositioning space was re-measured during third quarter 2020 to 61,066 square feet. (13) We own 75% of the ownership interest in the consolidated joint venture that owns 10850 Pico. 40,337 square feet at 10850 Pico was taken off-line for repositioning as of first quarter 2020. (14) Included as part of total in-service occupied and leased square footage is 111,506 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $50.34. (15) Included as part of the Company’s share of total in-service occupied and leased square footage is 106,077 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $52.12. Page 29 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 In-Service Office Properties by Location(1) Annualized Base Square Occupied Percent Leased Percent Annualized Rent Per Square Properties Feet(2) Square Feet Occupied(3) Square Feet Leased(3) Base Rent(4) Foot(4) STABILIZED Vancouver, British Columbia Downtown Vancouver(5) 1 1,486,957 1,441,796 97.0 % 1,460,716 98.2 % $ 37,975,829 $ 26.34 Subtotal 1 1,486,957 1,441,796 97.0 1,460,716 98.2 37,975,829 26.34 Greater Seattle, Washington Lynnwood 1 182,009 115,728 63.6 115,728 63.6 2,721,262 23.51 Denny Triangle 2 468,665 467,176 99.7 467,176 99.7 16,685,151 35.71 Pioneer Square 4 806,690 764,439 94.8 766,116 95.0 25,969,602 33.97 Subtotal 7 1,457,364 1,347,343 92.5 1,349,020 92.6 45,376,015 33.68 San Francisco Bay Area, California San Francisco 7 2,533,712 2,454,219 96.9 2,488,998 98.2 146,511,488 59.70 Redwood Shores 4 1,011,524 917,926 90.7 924,975 91.4 57,982,463 63.17 Palo Alto 7 1,156,957 1,031,632 89.2 1,050,807 90.8 81,557,308 79.06 North San Jose 5 2,587,038 2,379,177 92.0 2,393,960 92.5 95,673,513 40.21 Santa Clara 1 284,440 240,607 84.6 240,607 84.6 12,252,779 50.92 Subtotal 24 7,573,671 7,023,561 92.7 7,099,347 93.7 393,977,551 56.09 Los Angeles, California Hollywood 5 1,039,791 983,744 94.6 993,609 95.6 59,742,280 60.73 West Los Angeles 7 1,116,915 1,068,482 95.7 1,070,330 95.8 54,340,293 50.86 Downtown Los Angeles 2 234,664 220,676 94.0 229,280 97.7 5,383,660 24.40 Subtotal 14 2,391,370 2,272,902 95.0 2,293,219 95.9 119,466,233 52.56 Total Stabilized 46 12,909,362 12,085,602 93.6 12,202,302 94.5 596,795,628 49.38 Company's Share of Total Stabilized 46 10,580,889 9,803,225 92.7 9,904,789 93.6 500,857,121 51.09 For footnotes (1), (2), (3) and (4) above refer to the descriptions on page 29. (5) Annualized base rent and rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. Page 30 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 In-Service Office Properties by Location(1) (continued) Annualized Base Square Occupied Percent Leased Percent Annualized Rent Per Square Properties Feet(2) Square Feet Occupied(3) Square Feet Leased(3) Base Rent(4) Foot(4) LEASE-UP Greater Seattle, Washington Pioneer Square 1 35,904 26,661 74.3 26,661 74.3 1,077,904 40.43 Subtotal 1 35,904 26,661 74.3 26,661 74.3 1,077,904 40.43 San Francisco Bay Area, California Foster City 1 736,986 586,891 79.6 586,891 79.6 34,866,158 59.41 Redwood Shores 1 182,789 143,718 78.6 143,718 78.6 8,113,967 56.46 Subtotal 2 919,775 730,609 79.4 730,609 79.4 42,980,125 58.83 Total Lease-up 3 955,679 757,270 79.2 757,270 79.2 44,058,029 58.18 TOTAL IN-SERVICE 49 13,865,041 12,842,872 92.6% 12,959,572 93.5% $ 640,853,657 $ 49.90 (6) COMPANY'S SHARE OF TOTAL % % $ $ (7) IN-SERVICE 49 11,536,568 10,560,495 91.5 10,662,059 92.4 544,915,150 51.60 For footnotes (1), (2), (3) and (4) above refer to the descriptions on page 29. (6) Included as part of total in-service occupied and leased square footage is 111,506 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $50.34. (7) Included as part of the Company’s share of total in-service occupied and leased square footage is 106,077 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $52.12. Page 31 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Studio Properties Square Percent of Percent Annual Annual Base Rent Per Feet Total Leased Base Rent Leased Square Foot Sunset Gower Studios 531,756 43.4% 93.6% $ 19,002,371 $ 38.19 Sunset Bronson Studios 308,026 25.2 99.3 12,355,063 40.41 Sunset Las Palmas Studios 384,621 31.4 81.6 14,395,624 46.67 Total same-store studio(1) 1,224,403 100.0% 91.3% (2) $ 45,753,058 (3) $ 40.95 (4) TOTAL STUDIO 1,224,403 100.0% 91.3% $ 45,753,058 $ 40.95 COMPANY'S SHARE OF TOTAL STUDIO(5) 624,446 91.3% $ 23,334,060 $ 40.95 (1) Same-store studio defined as all studios owned and included in our portfolio as of January 1, 2019 and still owned and included in our portfolio as of September 30, 2020. (2) Percent leased for same-store studio is the average percent leased for the 12 months ended September 30, 2020. (3) Annual base rent for same-store studio reflects actual base rent for the 12 months ended September 30, 2020, excluding tenant reimbursements. (4) Annual base rent per leased square foot for same-store studio calculated as (i) annual base rent divided by (ii) square footage under lease as of September 30, 2020. (5) We own 51% of the ownership interest in the consolidated joint venture that owns Sunset Gower Studios, Sunset Bronson Studios and Sunset Las Palmas Studios. Page 32 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Land Properties Submarket Square Feet(1) Percent of Total Vancouver, British Columbia Bentall Centre—Development(2) Downtown Vancouver 450,000 16.4% Subtotal 450,000 16.4% Greater Seattle, Washington Washington 1000(3) Denny Triangle 538,164 19.7% Subtotal 538,164 19.7% San Francisco Bay Area, California Cloud10 North San Jose 350,000 12.8% Subtotal 350,000 12.8% Los Angeles, California Sunset Bronson Studios Lot D—Development(4)(5) Hollywood 19,816 0.7% Sunset Gower Studios—Development(5)(6) Hollywood 478,845 17.5% Sunset Las Palmas Studios—Redevelopment(5) Hollywood 400,000 14.6% Element LA West Los Angeles 500,000 18.3% Subtotal 1,398,661 51.1% TOTAL LAND 2,736,825 100.0% COMPANY’S SHARE OF TOTAL LAND 1,936,481 (1) Square footage for land properties represents management’s estimate of developable square footage, the majority of which remains subject to entitlement approvals that have not yet been obtained. (2) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. The construction of Bentall Centre—Development may require the demolition of certain retail square footage. (3) The final purchase of Washington 1000 is pending as of September 30, 2020. Square footage represents condominium rights to build a fully entitled 16-story office tower. (4) Square footage for Sunset Bronson Studios Lot D—Development represents management’s estimate of developable square footage for 33 residential units. (5) We own 51% of the ownership interest in the consolidated joint venture that owns Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. (6) Estimated square footage for Sunset Gower Studios—Development is net of 130,169 square feet of anticipated demolition in connection with the development. Page 33 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Repositioning, Redevelopment, Development and Held For Sale Properties(1) Annualized Estimated Occupied Percent Leased Percent Annualized Base Rent Per Submarket Square Feet(2) Square Feet Occupied(3) Square Feet Leased(3) Base Rent(4) Square Foot(4) REPOSITIONING(5) San Francisco Bay Area, California Rincon Center(6) San Francisco 21,982 — —% — —% $ — $ — Page Mill Center(7) Palo Alto 79,056 — — — — — — Metro Plaza(8) North San Jose 61,066 — — — — — — Subtotal 162,104 — — — — — — Los Angeles, California 10850 Pico(9) West Los Angeles 40,337 — — — — — — Subtotal 40,337 — — — — — — Total repositioning 202,441 — — — — — — REDEVELOPMENT Los Angeles, California One Westside West Los Angeles 584,000 — — 584,000 (10) 100.0 (10) — (10) — Del Amo(11) Torrance 113,000 — — — — — — Total redevelopment 697,000 — — 584,000 83.8 — — DEVELOPMENT Los Angeles, California Harlow(12) Hollywood 106,125 — — — — — — Total development 106,125 — — — — — — TOTAL REPOSITIONING, REDEVELOPMENT, DEVELOPMENT 1,005,566 — —% 584,000 58.1% $ — $ — AND HELD FOR SALE COMPANY’S SHARE OF TOTAL REPOSITIONING, REDEVELOPMENT, 797,481 — —% 438,000 54.9% $ — $ — DEVELOPMENT AND HELD FOR SALE (1) Excludes in-service office and land properties with exception of land properties held for sale (see pages 27, 28 and 33). The timing of completion of our projects may be impacted by factors outside of our control, including government restrictions and/or social distancing requirements affecting construction projects due to the COVID-19 pandemic. (2) Square footages determined by management based upon estimated leasable square footage, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to re-measurement or re-leasing. (3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of September 30, 2020, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases. Page 34 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Repositioning, Redevelopment, Development and Held For Sale Properties(1) (continued) (4) Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of September 30, 2020, by (ii) 12. Annualized base rent per square foot for office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced lease as of September 30, 2020. Annualized base rent does not reflect tenant reimbursements. (5) Reclassification of a portion of an asset for purposes of improving its quality and value through investment of significant capital, resulting in substantial down time in occupancy. (6) 20,047 square feet at Rincon Center was taken off-line for repositioning as of third quarter 2019. An additional 1,935 square feet was taken off-line for repositioning as of third quarter 2020. (7) 63,201 square feet at Page Mill Center was taken off-line for repositioning as of first quarter 2020. This space was re-measured during second quarter 2020 to 64,038 square feet. An additional 15,018 square feet was taken off-line for repositioning as of third quarter 2020. (8) 17,624 square feet at Metro Plaza was taken off-line for repositioning as of fourth quarter 2019. An additional 30,851 square feet was taken off-line for repositioning as of first quarter 2020. The total repositioning space was re-measured during third quarter 2020 to 61,066 square feet. (9) We own 75% of the ownership interest in the consolidated joint venture that owns 10850 Pico. 40,337 square feet at 10850 Pico was taken off-line for repositioning as of first quarter 2020. (10) Google, Inc. signed a 584,000-square-foot lease for approximately 14.3 years. The entire premises is anticipated to be delivered for construction of tenant improvements to Google, Inc. during first quarter 2022. Monthly base rent payments are anticipated to commence during third quarter 2022 with base rent abatements from the second through ninth month following rent commencement. We own 75% of the ownership interest in the consolidated joint venture that owns One Westside. (11) 113,000 square feet at Del Amo was taken off-line for repositioning as of first quarter 2020. (12) We own 51% of the ownership interest in the consolidated joint venture that owns Harlow. Page 35 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Under Construction and Future Development Projects Unaudited, in thousands, except square feet Estimated Construction Period Project Costs(1) Estimated Initial Project Total Stabilized Estimated Estimated Estimated Costs Estimated Yield on Start Completion Stabilization Square Total % as of Project Project Submarket Date(2) Date(3) Date(4) Feet(5) Leased 9/30/20 Costs Costs(6) UNDER CONSTRUCTION Harlow(7) Hollywood Q1-2018 Q3-2020 (8) Q4-2022 106,125 —% $ 58,963 (9) $ 82,583 (9) 6.70% West Los % (10) $ (11) $500,000- (11) 7.50%-8.00% (11) One Westside Angeles Q4-2019 Q1-2022 Q2-2023 584,000 100.0 239,767 $550,000 Total under construction 690,125 $ 298,730 FUTURE DEVELOPMENT PIPELINE Denny (12) % $ (12) $325,000- (12) Washington 1000 Triangle TBD TBD TBD 538,164 — 24,439 $350,000 6.75%-7.25% (13) Downtown Bentall Centre—Development Vancouver TBD TBD TBD 450,000 N/A N/A TBD TBD West Los Element LA—Development Angeles TBD TBD TBD 500,000 N/A N/A TBD TBD Sunset Bronson Studios Lot D—Development(7) Hollywood TBD TBD TBD 19,816 N/A N/A TBD TBD Sunset Gower Studios— Development(7)(14) Hollywood TBD TBD TBD 478,845 N/A N/A TBD TBD Sunset Las Palmas (15) (7) $ Studios—Development Hollywood TBD TBD TBD 400,000 N/A 21,396 TBD TBD North San $ (16) Cloud10 Jose TBD TBD TBD 350,000 N/A 12,897 TBD TBD Total future development 2,736,825 TOTAL 3,426,950 (1) Project costs exclude interest costs capitalized in accordance with Accounting Standards Codification (“ASC”) 835-20-50-1, personnel costs capitalized in accordance with ASC 970-360-25 and operating expenses capitalized in accordance with ASC 970-340. (2) Based on issuance of building permit or equivalent. (3) Based on receipt of a temporary certificate of occupancy or equivalent. The timing of completion of our projects may be impacted by factors outside of our control, including government restrictions and/or social distancing requirements affecting construction projects due to the COVID-19 pandemic. (4) Based on management’s estimate of stabilized occupancy (92.0%). Occupancy for stabilization purposes defined as the commencement of base rental payments (defined as cash base rents (after abatements)). (5) Square footage for office properties determined by management based upon estimated leasable square footage, which may be less or more than the Building Owners and Managers Association (BOMA) rentable area. Square footage may change over time due to re-measurement or re-leasing. Square footage for land properties represents management’s estimate of developable square footage, the majority of which remains subject to entitlement approvals not yet obtained. Page 36 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Under Construction and Future Development Projects (continued) (6) Estimated initial stabilized yield on project costs calculated as the quotient of the estimated NOI and our investment in the property once the project has reached stabilization and initial rental concessions, if any, have elapsed. Our estimated initial stabilized yield excludes the impact of leverage. Our cash rents related to our value creation projects are expected to increase over time and our average cash yields are expected, in general, to be greater than our estimated initial stabilized yields on a cash basis. Our estimates for initial cash yields and total costs at completion represent our current estimates, which may be updated upon completion of the project or sooner if there are significant changes to the expected project yields or costs. We caution against placing undue reliance on the estimated initial stabilized yields because they are based solely on our estimates, using data available to us throughout the development process. The amount of total investment required to reach stabilized occupancy may differ substantially from our estimates due to various factors. We can provide no assurance that the actual initial stabilized yields will be consistent with the estimated initial stabilized yields set forth herein. (7) We own 51% of the ownership interest in the consolidated joint venture that owns Harlow, Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios. (8) We received the temporary certificate of occupancy for Harlow on July 2, 2020. (9) Project costs as of September 30, 2020 and total estimated project costs for Harlow include $4.2 million for management’s estimate of allocated land and acquisition costs. (10) Google, Inc. signed a 584,000-square-foot lease for approximately 14.3 years anticipated to commence upon completion of construction and build-out of tenant improvements in 2022. Please see page 35 for description of rent phasing and abatements. We own 75% of the ownership interest in the consolidated joint venture that owns One Westside. (11) On March 1, 2018, we entered into a joint venture with Macerich WSP, LLC (“Macerich”) to redevelop Westside Pavilion, a shopping mall in West Los Angeles, into 584,000 square feet of creative office space (now referred to as One Westside), while preserving 95,987 square feet of existing retail and entertainment space (now referred to as 10850 Pico). Total estimated projects costs for One Westside are in the range of $500.0 - $550.0 million, with each partner contributing its prorata share. Total estimated project costs, as well as project costs as of September 30, 2020 for One Westside include the $140.0 million purchase price paid by the joint venture in August 2018 for related existing buildings and land, and exclude an additional $50.0 million paid by the joint venture, which is allocated to the fully operational 10850 Pico. One Westside total estimated project costs and project costs as of September 30, 2020 are not prorated for the joint venture ownership and do not include: (i) operating results from March 1, 2018 through February 1, 2019, (ii) defeasance costs, and (iii) debt service associated with the defeased debt. Estimated yields at stabilization for One Westside will range between 7.50% - 8.00%. We own 75% of the ownership interest in the consolidated joint venture that owns One Westside. (12) Total estimated project costs for Washington 1000 include $86.0 million for management’s estimate of allocated land and acquisition costs. As of September 30, 2020 we have incurred $24.4 million of project costs with the remaining $61.6 million of management’s estimate of allocated land and acquisition costs due upon the deliverance of the podium by the State of Washington, which is anticipated to occur during second quarter 2021. The Company could commence construction upon delivery of the podium. (13) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre—Development. (14) Estimated square footage for Sunset Gower Studios—Development is net of 130,169 square feet of anticipated demolition in connection with the development. (15) Project costs as of September 30, 2020 for Sunset Las Palmas Studios—Development include $20.8 million for management’s estimate of allocated land and acquisition costs. (16) Project costs as of September 30, 2020 for Cloud10 include approximately $10.5 million for management’s estimate of allocated land and acquisition costs. Page 37 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Recently Completed, Under Construction and Planned Project Images Fourth & Traction | Redevelopment CUE | Development 450 Alaskan | Development 95 Jackson | Redevelopment Los Angeles (Arts District) Los Angeles (Hollywood) Seattle (Pioneer Square) Seattle (Pioneer Square) 131,701 SF | Completed 2Q17 94,386 SF | Completed 3Q17 170,974 SF | Completed 3Q17 35,904 SF | Completed 2Q18 Single Tenant (Honey Science Corporation) Single Tenant (Netflix, Inc.) Multi-Tenant Multi-Tenant Recently Completed Under Construction Maxwell | Redevelopment EPIC | Development Harlow | Development One Westside | Redevelopment Los Angeles (Arts District) Los Angeles (Hollywood) Los Angeles (Hollywood) Los Angeles (West Los Angeles) 102,963 SF | Completed 1Q19 301,127 SF | Completed 4Q19 106,125 SF | Completion 3Q20 584,000 SF | Completion 1Q22 Planned Multi-Tenant Single Tenant (Netflix, Inc.) Single or Multi-Tenant Single Tenant (Google, Inc.) Cloud10 | Development Sunset Gower Studios | Development Washington 1000 | Development Bentall Centre | Development Silicon Valley (North San Jose) Los Angeles (Hollywood) Seattle (Denny Triangle) Vancouver (Downtown) (1) 350,000 SF(1) | Completion TBD 478,845(1) SF | Completion TBD 538,164(1) SF | Completion TBD 450,000 SF | Completion TBD Single Tenant (Build-to-Suit) Single or Multi-Tenant Single or Multi-Tenant Single or Multi-Tenant (1) Square footage for office properties determined by management based upon estimated leasable square footage, which may be less or more than the Building Owners and Managers Association (BOMA) rentable area. Square footage may change over time due to re-measurement or re-leasing. Square footage for land properties represents management’s estimate of developable square footage, the majority of which remains subject to entitlement approvals not yet obtained. Page 38 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Office Tenant Industry Diversification(1) INDUSTRY DIVERSIFICATION TECHNOLOGY DIVERSIFICATION Company’s Share Company’s Share Annualized Annualized Annualized Annualized Base Rent as Base Rent as Base Rent Base Rent Square Feet Percent of Square Feet Percent of Square as Percent Square as Percent Industry (2)(3) Total (2)(4) Total Sector Feet(2) of Total Feet(2) of Total Technology 4,854,967 38.9% 4,280,532 40.6% Online services 1,090,452 28.7% 984,955 30.0% Media and Entertainment 1,789,115 16.1 1,307,158 13.8 Software 1,345,870 26.3 1,283,940 28.3 Business Services 1,342,527 (5) 9.6 1,073,096 (6) 9.4 Computer hardware and technology equipment 1,121,252 17.7 1,087,082 19.5 Legal 724,124 7.6 662,890 8.6 Business support services 717,741 15.1 504,445 12.2 Financial Services 1,075,567 7.9 773,897 7.4 Other 411,595 8.5 264,584 6.1 Other 737,830 5.4 560,992 5.5 Biotechnology, healthcare (7) (8) 110,566 2.7 110,566 3.0 Retail 698,329 4.4 645,582 4.6 and medical research Real Estate 471,972 3.0 263,049 2.4 Telecommunications and networking 57,491 1.0 44,960 0.9 Healthcare 210,236 1.9 199,085 2.2 TOTAL 4,854,967 100.0% 4,280,532 100.0% Insurance 290,832 1.9 236,034 2.0 Educational 142,664 1.2 137,709 1.4 MEDIA AND ENTERTAINMENT DIVERSIFICATION Government 264,040 1.5 200,097 1.4 Company’s Share Advertising 60,075 0.6 55,656 0.7 Annualized Annualized Base Rent Base Rent TOTAL 12,662,278 100.0% 10,395,777 100.0% Square as Percent Square as Percent Sector Feet(2) of Total Feet(2) of Total Entertainment production % % and service 1,247,398 69.8 786,639 59.5 Gaming 361,501 21.9 351,363 29.7 Advertising and marketing 121,989 6.1 121,989 8.4 Other 58,227 2.2 47,167 2.4 TOTAL 1,789,115 100.0% 1,307,158 100.0% (1) Industries and sectors are determined by management using Thompson Reuters Business Classification and are presented in order of Company’s Share of annualized base rent. (2) Excludes signed leases not commenced. (3) Excludes 180,594 square feet occupied by the Company. (4) Excludes 164,717 square feet occupied by the Company. (5) Includes 631,791 square feet occupied by co-working tenants (represents 4.1% of total annualized base rent). (6) Includes 439,718 square feet occupied by co-working tenants (represents 3.3% of the Company’s Share of total annualized base rent). (7) Includes 434,596 square feet of storefront retail (represents 2.7% of total annualized base rent). (8) Includes 381,849 square feet of storefront retail (represents 2.6% of the Company’s Share of total annualized base rent). Page 39 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Fifteen Largest Office Tenants Company’s Share Total Total Percent of Percent of Credit Rating(3) Market Lease Occupied Occupied Rentable Annualized Annualized Capitalization Tenant(1) Property Expiration Square Feet Square Feet Square Feet Base Rent(2) Base Rent Moody’s S&P (in billions)(3) Google, Inc. Various Various 605,947 (4) 587,338 4.8% $ 44,238,797 8.1% Aa2 AA+ $ 930.7 Netflix, Inc. Various 9/30/2031 722,305 (5) 368,376 3.0 23,349,755 4.2 Ba3 BB 220.5 Nutanix, Inc. Various 5/31/2024 436,208 (6) 436,208 3.5 17,830,956 3.3 4.1 Riot Games, Inc. Element LA 3/31/2030 284,037 (7) 284,037 2.3 17,343,691 3.2 — Qualcomm Skyport Plaza 7/31/2022 376,817 376,817 3.1 14,505,947 2.7 A2 A- 132.8 Salesforce.com Rincon Center Various 265,394 (8) 265,394 2.2 13,992,544 2.6 A2 A 228.7 Square, Inc. 1455 Market(9) 9/27/2023 469,056 257,981 2.1 12,905,235 2.4 60.4 Dell EMC Corporation Various Various 311,795 (10) 311,795 2.5 12,048,369 2.2 — Uber Technologies, Inc. 1455 Market(9) 2/28/2025 325,445 178,995 1.5 9,363,617 1.7 B2 B- 63.9 NFL Enterprises Various 12/31/2023 167,606 (11) 167,606 1.4 7,582,495 1.4 — Regus Various Various 150,081 (12) 150,081 1.2 6,986,764 1.3 — GitHub, Inc. Various 6/30/2025 92,450 (13) 92,450 0.7 6,554,532 1.2 — Weil, Gotshal & Manges LLP Towers at Shore 8/31/2026 76,278 76,278 0.6 5,580,351 1.0 — Center Honey Science Corporation Fourth & Traction 5/31/2030 123,097 (14) 123,097 1.0 5,383,660 1.0 — WeWork Companies Inc. Various Various 374,542 (15) 203,077 1.6 5,318,101 1.0 — TOTAL 4,781,058 3,879,530 31.5% $202,984,814 37.3% (1) Presented in order of Company’s Share of annualized base rent. (2) Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of September 30, 2020, by (ii) 12. Annualized base rent does not reflect tenant reimbursements. Annualized base rents related to Bentall Centre have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (3) Credit rating and market capitalization data provided by FactSet and as of September 30, 2020. (4) Google, Inc. expirations by square footage and property: (i) 207,857 square feet at 3400 Hillview expiring on November 30, 2021, (ii) 182,672 square feet at Foothill Research Center expiring on February 28, 2025, (iii) 174,064 square feet at Rincon Center expiring on February 29, 2028, and (iv) 41,354 square feet at Ferry Building expiring on October 31, 2029. We own 55% of the ownership interest in the consolidated joint venture that owns Ferry Building. Google, Inc. may elect to exercise its early termination right at Rincon Center for 166,460 square feet effective April 15, 2025 by delivering written notice on or before January 15, 2024. At Rincon Center, Google Inc. is expected to take possession of an additional 34,779 square feet during fourth quarter 2020. At One Westside, Google, Inc. is expected to take possession of an additional 584,000 square feet during first quarter 2022. We own 75% of the ownership interest in the consolidated joint venture that owns One Westside. Please see page 34 for description of rent phasing and abatements. (5) Netflix, Inc. expirations by square footage and property: (i) 326,792 square feet at ICON, (ii) 301,127 square feet at EPIC, and (iii) 94,386 square feet at CUE. We own 51% of the ownership interest in the consolidated joint venture that owns ICON, EPIC and CUE. Page 40 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Fifteen Largest Office Tenants (continued) (6) Nutanix, Inc. expirations by square footage and property: (i) 196,247 square feet at 1740 Technology, (ii) 131,351 square feet at Concourse, and (iii) 108,610 square feet at Metro Plaza. At 1740 Technology, Nutanix, Inc. is expected to take possession of an additional 3,198 square feet during fourth quarter 2020 and 6,413 square feet during second quarter 2022. All leases for Nutanix, Inc. will expire on May 31, 2024. (7) Riot Games, Inc. may elect to exercise its early termination right for the entire premises effective February 28, 2025 by delivering written notice on or before February 29, 2024. (8) Salesforce.com expirations by square footage: (i) 83,016 square feet expiring on July 31, 2025, (ii) 83,372 square feet expiring on April 30, 2027, (iii) 93,028 square feet expiring on October 31, 2028, and (iv) 5,978 square feet of month-to-month storage space. Salesforce.com subleased 259,416 square feet at Rincon Center to Twilio Inc. during third quarter 2018. Effective January 30, 2019, we entered into an agreement to reimburse Salesforce.com approximately $6.3 million for costs incurred in connection with the sublease. We are entitled to recoup this cost from amounts paid pursuant to the sublease commencing February 1, 2019, of which we have been fully reimbursed as of March 31, 2020. Thereafter, Salesforce.com will pay us 50% of any amounts received pursuant to the sublease, such that we will begin receiving an average of $340,000 per month of sublease cash rents starting June 2020, with annual growth thereafter. (9) We own 55% of the ownership interest in the consolidated joint venture that owns 1455 Market. (10) Dell EMC Corporation expirations by square footage and property: (i) 185,292 square feet at 505 First expiring on October 18, 2021, (ii) 42,954 square feet at 505 First expiring on December 31, 2023, and (iii) 83,549 square feet at 875 Howard expiring on June 30, 2026. (11) NFL Enterprises by square footage and property: (i) 157,687 square feet at 10950 Washington and (ii) 9,919 square feet at 10900 Washington. NFL Enterprises may elect to exercise its early termination right for the entire premises effective December 31, 2022 by delivering written notice on or before September 30, 2021. (12) Regus expirations by square footage and property: (i) 44,957 square feet at Gateway expiring on March 31, 2022, (ii) 20,059 square feet at 11601 Wilshire expiring on February 29, 2024, (iii) 27,369 square feet at Techmart expiring on April 30, 2025, (iv) 9,739 square feet at Palo Alto Square expiring on April 30, 2026, (v) 26,661 square feet at 95 Jackson expiring on October 31, 2030, and (vi) 21,296 square feet at 450 Alaskan expiring on October 31, 2030. (13) GitHub Inc. expirations by square footage and property: (i) 57,120 square feet at 275 Brannan and (ii) 35,330 square feet at 625 Second. (14) Honey Science Corporation will take possession of an additional 8,604 square feet during second quarter 2022. Honey Science Corporation may elect to exercise its early termination right for the entire premises effective July 17, 2026 by delivering written notice on or before July 17, 2025. (15) WeWork Companies Inc. expirations by square footage and property: (i) 12,713 square feet at Foothill Research Center expiring June 30, 2022, (ii) 54,336 square feet at Hill7 expiring January 31, 2030, (iii) 94,826 square feet at Maxwell expiring June 30, 2031, (iv) 66,056 square feet at 1455 Market expiring October 31, 2031, and (v) 146,611 square feet at Bentall Centre expiring October 31, 2033. We own 55% of the ownership interest in the consolidated joint ventures that own Hill7 and 1455 Market, and 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. We entered into an agreement with WeWork Companies Inc. with respect to its lease at Maxwell stipulating that the tenant shall pay substitution rent in an amount equal to 70% of net revenues actually received during each full calendar month for the remainder of the lease term in lieu of paying monthly base rent. We reserve the option to terminate the Maxwell lease in its entirety or as to a full floor of the premises at any time by providing a minimum 60 days’ written notice. Page 41 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Office Property Leasing Activity(1) Three Months Ended Nine Months Ended September 30, 2020 September 30, 2020 Total gross leasing activity Rentable square feet(2) 184,583 520,944 Gross new leasing activity Rentable square feet 105,129 269,919 New cash rate(3) $75.29 $61.96 Gross renewal leasing activity Rentable square feet 79,454 251,025 Renewal cash rate(4) $49.62 $52.77 Total leases expired and terminated Contractual (scheduled) expiration 165,659 716,411 Early termination 43,129 106,111 Total 208,788 822,522 Net absorption Leased rentable square feet (103,659) (552,603) Cash rent growth(5) Expiring rate $47.50 $43.17 New/renewal rate(6) $61.03 $57.06 Change(5) 28.5% 32.2% Straight-line rent growth(7) Expiring rate $44.09 $39.97 New/renewal rate(6) $62.07 $57.80 Change(7) 40.8% 44.6% Weighted average lease terms New (in months) 63.8 68.8 Renewal (in months) 31.0 40.1 Blended 49.5 54.2 TENANT IMPROVEMENTS AND LEASING COMMISSIONS(8) Per Square Foot Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total Annual Total Annual New leases $96.10 $18.06 $66.89 $11.66 Renewal leases $5.65 $2.19 $9.58 $2.87 Blended $56.67 $13.74 $37.72 $8.35 NET EFFECTIVE RENT(9) Per Square Foot Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020 Total Total New leases $53.01 $47.05 Renewal leases $46.25 $48.96 Blended $50.06 $48.02 Page 42 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Office Property Leasing Activity(1) (continued) (1) Represents 100% share of consolidated and unconsolidated joint ventures. (2) Includes square footage related to the Company’s management offices totaling 30,523 square feet for the nine months ended September 30, 2020. (3) Excludes the impact of 5,158 square feet related to tenants paying percentage rent in lieu of base rent. (4) Excludes the impact of 4,218 square feet related to tenants paying percentage rent in lieu of base rent. (5) Represents a comparison between initial stabilized cash rents on new and renewal leases as compared to the expiring cash rents in the same space. New leases are only included if the same space was leased within the previous 12 months. Excludes tenants paying percentage rent in lieu of base rent. (6) The new rates being compared to expiring rates for the three and nine months ended September 30, 2020 are calculated using the weighted average starting rates for 61,749 and 188,023 square feet of new leases, respectively. The renewal rates are a weighted average calculation of the total executed renewals for the periods indicated. (7) Represents a comparison between initial straight-line rents on new and renewal leases as compared to the straight-line rents on expiring leases in the same space. New leases are only included if the same space was leased within the previous 12 months. Excludes tenants paying percentage rent in lieu of base rent. (8) Represents per-square-foot weighted average lease transaction costs based on the leases executed in the current quarter. (9) Represents the weighted average initial annual cash rent, net of the annualized concessions (i.e free rent), tenant improvements and lease commissions. Page 43 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Commenced Office Leases with Non-Recurring Upfront Abatements(1) Square Lease Rent Starting Lease Submarket Feet Start Date Start Date Base Rents(2) Expiration Date Vancouver, British Columbia Bentall Centre(3) Downtown Vancouver 71,424 5/1/2020 10/1/2020 $ 39.79 9/30/2030 Bentall Centre(3) Downtown Vancouver 7,500 7/1/2020 12/1/2020 $ 45.80 11/30/2030 Greater Seattle, Washington 411 First Pioneer Square 2,094 5/7/2020 7/7/2020 $ 48.00 6/30/2021 San Francisco Bay Area, California 333 Twin Dolphin Redwood Shores 10,882 1/21/2020 8/1/2020 $ 66.00 7/31/2025 Palo Alto Square Palo Alto 13,593 2/1/2020 7/30/2020 $ 92.08 8/31/2028 Foothill Research Center Palo Alto 12,389 3/1/2020 8/28/2020 $ 73.80 2/28/2025 Techmart Santa Clara 1,223 6/1/2020 8/1/2020 $ 54.00 7/31/2021 Metro Center Foster City 5,555 6/26/2020 9/1/2020 $ 73.20 3/31/2025 875 Howard San Francisco 17,039 7/1/2020 10/1/2020 $ 75.19 6/30/2026 Metro Center Foster City 33,439 7/1/2020 1/1/2021 $ 45.60 6/30/2027 Metro Center Foster City 9,292 7/1/2020 12/1/2020 $ 45.00 11/30/2027 Shorebreeze Redwood Shores 26,892 7/1/2020 12/1/2020 $ 67.20 6/30/2027 Techmart Santa Clara 8,834 7/1/2020 8/1/2020 $ 55.80 8/31/2022 Concourse North San Jose 1,793 8/1/2020 9/1/2020 $ 49.20 7/31/2021 Concourse North San Jose 1,311 8/12/2020 10/1/2020 $ 49.80 11/30/2023 Towers at Shore Center Redwood Shores 7,018 9/1/2020 10/1/2020 $ 73.20 8/31/2023 555 Twin Dolphin Redwood Shores 1,403 9/1/2020 10/1/2020 $ 64.20 9/30/2021 Palo Alto Square Palo Alto 5,562 9/1/2020 12/1/2020 $ 115.20 8/31/2025 Los Angeles, California EPIC(4) Hollywood 105,420 10/1/2019 9/30/2020 $ 68.40 9/30/2031 EPIC(4) Hollywood 60,014 10/1/2019 3/30/2021 $ 68.40 9/30/2031 (1) Consists of leases that commenced on or prior to September 30, 2020 with up-front free rent resulting in a rent start date after the commencement of the three-month period ending September 30, 2020. (2) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements or deferments)) as of the lease commencement date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements. (3) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre. Rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (4) We own 51% in the consolidated joint venture that owns EPIC. During second quarter 2020, Netflix, Inc. entered into an agreement to increase its tenant improvement allowance by relinquishing the base rent abatements previously scheduled to occur after its rent start dates in 2020 and 2021. Page 44 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Uncommenced Office Leases—Next Eight Quarters(1)(2) Company’s Share Q4 2020 Q1 2021 Q3 2021 Q4 2020 Q1 2021 Q3 2021 Starting Starting Starting Starting Starting Starting Rent per Rent per Rent per Rent per Rent per Rent per SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) Vancouver, British Columbia Downtown Vancouver(4) 10,950 $ 2.57 (5) 1,290 $ 30.03 1,667 $ 37.54 2,190 $ 2.57 (6) 258 $ 30.03 333 $ 37.54 Subtotal 10,950 2.57 1,290 30.03 1,667 37.54 2,190 2.57 258 30.03 333 37.54 Greater Seattle, Washington Pioneer Square — — 1,677 31.00 — — — — 1,677 31.00 — — Subtotal — — 1,677 31.00 — — — — 1,677 31.00 — — San Francisco Bay Area, California San Francisco 34,779 85.00 — — — — 34,779 85.00 ———— Redwood Shores 7,049 75.00 — — — — 7,049 75.00 ———— Palo Alto — — 19,175 84.60 — — — — 19,175 84.60 — — North San Jose 12,502 49.98 2,281 48.60 — — 12,502 49.98 2,281 48.60 — — Subtotal 54,330 75.64 21,456 80.77 — — 54,330 75.64 21,456 80.77 — — Los Angeles, California Hollywood 9,865 55.92 (7) — — — — 9,865 55.92 (7) ———— West Los Angeles — — 1,848 63.60 — — — — 1,848 63.60 — — Subtotal 9,865 55.92 1,848 63.60 — — 9,865 55.92 1,848 63.60 — — TOTAL UNCOMMENCED 75,145 $ 62.41 26,271 $ 73.90 1,667 $ 37.54 66,385 $ 70.30 25,239 $ 75.69 333 $ 37.54 (1) Consists of uncommenced leases, defined as new leases with respect to vacant space executed on or prior to September 30, 2020, but with commencement dates after September 30, 2020 and within the next eight quarters. This table omits submarkets and quarters without any activity. (2) There are no uncommenced leases commencing in second quarter 2021, fourth quarter 2021, or third quarter 2022. (3) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements or deferments)) as of the lease commencement date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements. Rent commencement dates do not reflect up-front free rents, if any. (4) Starting rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (5) Includes 10,000 square feet of space to be occupied by the Company for building management use. (6) Includes 2,000 square feet of space to be occupied by the Company for building management use. (7) Includes 1,109 square feet of space to be occupied by the Company for building management use. Page 45 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Uncommenced Office Leases—Next Eight Quarters(1)(2) (continued) Company’s Share Q1 2022 Q2 2022 Q1 2022 Q2 2022 Starting Starting Starting Starting Rent per Rent per Rent per Rent per SF SF(3) SF SF(3) SF SF(3) SF SF(3) Vancouver, British Columbia Downtown Vancouver(4) 5,013 $ 47.36 — $ — 1,003 $ 47.36 — $ — Subtotal 5,013 47.36 — — 1,003 47.36 — — Los Angeles, California Downtown Los Angeles — — 8,604 31.88 — — 8,604 31.88 West Los Angeles 584,000 62.01 — — 438,000 62.01 — — Subtotal 584,000 62.01 8,604 31.88 438,000 62.01 8,604 31.88 TOTAL UNCOMMENCED 589,013 $ 61.89 8,604 $ 31.88 439,003 $ 61.98 8,604 $ 31.88 For footnotes (1), (2), (3) and (4) above refer to the descriptions on page 45. Page 46 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Backfilled Office Leases—Next Eight Quarters(1)(2) Company’s Share Q4 2020 Q1 2021 Q2 2021 Q4 2020 Q1 2021 Q2 2021 Starting Starting Starting Starting Starting Starting Rent per Rent per Rent per Rent per Rent per Rent per SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) Vancouver, British Columbia Downtown Vancouver(4) 24,513 $ 39.42 1,339 $ 38.29 — $ — 4,903 $ 39.42 268 $ 38.29 — $ — Subtotal 24,513 39.42 1,339 38.29 — — 4,903 39.42 268 38.29 — — San Francisco Bay Area, California San Francisco 6,091 59.03 — — 1,944 112.00 6,069 56.58 — — 1,069 112.00 North San Jose 9,672 46.74 — — — — 9,672 46.74 — — — — Subtotal 15,763 51.49 — — 1,944 112.00 15,741 50.53 — — 1,069 112.00 TOTAL BACKFILLED 40,276 44.14 1,339 38.29 1,944 112.00 20,644 47.89 268 38.29 1,069 112.00 TOTAL UNCOMMENCED AND BACKFILLED 115,421 $ 56.03 27,610 $ 72.17 1,944 $ 112.00 87,029 $ 64.99 25,507 $ 75.30 1,069 $ 112.00 (1) Consists of backfilled leases, defined as new leases with respect to occupied space executed on or prior to September 30, 2020, but with commencement dates after September 30, 2020 and within the next eight quarters. This table omits submarkets and quarters without any activity. (2) There are no backfilled leases commencing in fourth quarter 2021, first quarter 2022, or third quarter 2022. (3) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements or deferments)) as of the lease commencement date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements. Rent commencement dates do not reflect up-front free rents, if any. (4) Starting rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. Page 47 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Backfilled Office Leases—Next Eight Quarters(1)(2) (continued) Company’s Share Q3 2021 Q1 2022 Q2 2022 Q3 2021 Q1 2022 Q2 2022 Starting Starting Starting Starting Starting Starting Rent per Rent per Rent per Rent per Rent per Rent per SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) SF SF(3) Vancouver, British Columbia Downtown Vancouver(4) 5,334 — (5) — — — — 1,067 — (5) ———— Subtotal 5,334 — — — — — 1,067 — — — — — San Francisco Bay Area, California North San Jose —— —— 6,413 44.30 —— — — 6,413 44.30 Subtotal —— —— 6,413 44.30 —— — — 6,413 44.30 TOTAL BACKFILLED 5,334 — — — 6,413 44.30 1,067 — — — 6,413 44.30 TOTAL UNCOMMENCED AND BACKFILLED 7,001 $ 8.94 589,013 $ 61.89 15,017 $ 37.18 1,400 $ 8.94 439,003 $ 61.98 15,017 $ 37.18 For footnotes (1), (2), (3) and (4) above refer to the descriptions on page 47. (5) Management office to be occupied by the Company. Page 48 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Expiring Office Leases—Next Eight Quarters(1) Company’s Share Q4 2020(2) Q1 2021 Q2 2021 Q3 2021 Q4 2020(3) Q1 2021 Q2 2021 Q3 2021 Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) Vancouver, British Columbia Downtown Vancouver(6) 19,393 $20.93 10,025 $ 27.38 20,494 $23.96 80,685 $ 20.69 (7) 3,879 $20.93 2,005 $27.38 4,099 $23.96 16,137 $20.69 (7) Subtotal 19,393 20.93 10,025 27.38 20,494 23.96 80,685 20.69 3,879 20.93 2,005 27.38 4,099 23.96 16,137 20.69 Greater Seattle, Washington Denny Triangle — — 39,680 30.79 1,194 — (8) — — — — 39,680 30.79 657 — (8) —— Lynnwood — — 5,603 21.22 — — — — — — 5,603 21.22 — — —— Pioneer Square 7,342 14.51 118,372 28.05 (9) 3,693 45.37 32,641 38.68 7,342 14.51 118,372 28.05 (9) 3,693 45.37 32,641 38.68 Subtotal 7,342 14.51 163,655 28.48 4,887 34.28 32,641 38.68 7,342 14.51 163,655 28.48 4,350 38.52 32,641 38.68 San Francisco Bay Area, California Foster City 4,128 71.42 4,988 75.82 4,137 — (8) 42,114 48.31 4,128 71.42 4,988 75.82 4,137 — (8) 42,114 48.31 Palo Alto 44,170 74.96 10,316 98.55 46,734 78.18 24,264 59.93 44,170 74.96 10,316 98.55 46,734 78.18 24,264 59.93 Redwood Shores 58,657 36.66 (10) 9,165 48.31 72,615 60.67 (11) 94,278 52.10 (12) 58,657 36.66 (10) 9,165 48.31 72,615 60.67 (11) 94,278 52.10 (12) San Francisco 33,143 86.94 991 115.45 4,627 44.99 62,445 30.42 (13) 20,947 84.75 711 99.24 2,545 44.99 60,647 31.32 (13) North San Jose 51,233 38.36 (14) 75,295 41.04 (15) 67,550 35.29 (16) 74,564 39.53 (17) 51,233 38.36 (14) 75,295 41.04 (15) 67,550 35.29 (16) 74,564 39.53 (17) Santa Clara 15,908 51.94 8,035 53.25 12,072 45.03 16,752 55.32 15,908 51.94 8,035 53.25 12,072 45.03 16,752 55.32 Subtotal 207,239 55.15 108,790 50.28 207,735 53.89 314,417 45.08 195,043 52.93 108,510 50.00 205,653 53.98 312,619 45.34 Los Angeles, California Hollywood 3,954 — (8) 13,518 52.08 — — — — 3,954 — (8) 13,518 52.08 — — —— West Los Angeles 26,153 48.42 8,346 51.79 1,899 — (8) 4,791 64.56 26,153 48.42 8,346 51.79 1,424 — (8) 4,791 64.56 Subtotal 30,107 42.06 21,864 51.97 1,899 — 4,791 64.56 30,107 42.06 21,864 51.97 1,424 — 4,791 64.56 TOTAL 264,081 $50.01 304,334 $ 37.92 235,015 $50.44 432,534 $ 40.26 236,371 $49.82 296,034 $38.10 215,526 $52.74 366,188 $43.91 Expirations as % of Total In-Service 1.9% 2.2% 1.7% 3.1% 2.0% 2.6% 1.9% 3.2% Portfolio Page 49 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Expiring Office Leases—Next Eight Quarters(1) (continued) Company’s Share Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ Expiring Rent/ SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) SF(4) SF(5) Vancouver, British Columbia Downtown Vancouver(6) 98,109 $ 23.28 (18) 25,744 $ 32.37 64,071 $27.09 (19) 58,212 $ 25.84 (20) 19,622 $23.28 (18) 5,149 $32.37 12,814 $27.09 (19) 11,642 $ 25.84 (20) Subtotal 98,109 23.28 25,744 32.37 64,071 27.09 58,212 25.84 19,622 23.28 5,149 32.37 12,814 27.09 11,642 25.84 Greater Seattle, Washington Denny Triangle — — — — — — 1,218 35.82 — — —— — — 670 35.82 Lynnwood 9,570 20.00 2,842 22.81 15,960 22.39 — — 9,570 20.00 2,842 22.81 15,960 22.39 — — Pioneer (21) (21) Square 185,292 24.75 6,136 47.53 10,181 42.78 — — 185,292 24.75 6,136 47.53 10,181 42.78 — — Subtotal 194,862 24.51 8,978 39.71 26,141 30.33 1,218 35.82 194,862 24.51 8,978 39.71 26,141 30.33 670 35.82 San Francisco Bay Area, California Foster City 17,045 70.65 23,565 52.85 55,259 76.56 (22) 3,534 76.71 17,045 70.65 23,565 52.85 55,259 76.56 (22) 3,534 76.71 Palo Alto 226,048 74.47 (23) 12,165 93.76 36,803 75.65 6,289 102.89 226,048 74.47 (23) 12,165 93.76 36,803 75.65 6,289 102.89 Redwood (24) (24) Shores 22,276 71.20 22,288 67.58 28,836 70.17 51,712 69.02 22,276 71.20 22,288 67.58 28,836 70.17 51,712 69.02 San Francisco 931 197.03 517 196.69 2,222 42.09 20,104 62.42 512 197.03 284 196.69 2,222 42.09 18,411 62.74 North San (25) (26) (27) (28) (25) (26) (27) (28) Jose 55,433 41.06 100,699 44.30 78,997 44.45 428,176 41.27 55,433 41.06 100,699 44.30 78,997 44.45 428,176 41.27 Santa Clara 12,711 53.97 24,294 52.20 2,954 52.86 22,920 56.01 12,711 53.97 24,294 52.20 2,954 52.86 22,920 56.01 Subtotal 334,444 68.08 183,528 52.98 205,071 62.41 532,735 46.36 334,025 67.92 183,295 52.80 205,071 62.41 531,042 46.32 Los Angeles, California Hollywood — — — — 3,273 56.05 — — — — — — 3,273 56.05 — — West Los Angeles 9,960 50.99 4,052 60.98 5,901 64.08 47,900 47.12 9,960 50.99 4,052 60.98 5,901 64.08 37,147 47.70 Subtotal 9,960 50.99 4,052 60.98 9,174 61.21 47,900 47.12 9,960 50.99 4,052 60.98 9,174 61.21 37,147 47.70 TOTAL 637,375 $ 47.60 222,302 $ 50.20 304,457 $52.19 640,065 $ 44.53 558,469 $50.90 201,474 $51.86 253,200 $57.27 580,500 $ 45.98 Expirations as % of Total 4.6% 1.6% 2.2% 4.6% 4.8% 1.7% 2.2% 5.0% In-Service Portfolio (1) This does not reflect 38,437 square feet, of which 22,774 square feet represents the Company’s Share, that expired on September 30, 2020. This table omits submarkets without any expirations over the next eight quarters. (2) Fourth quarter 2020 expiring square footage representing 100% share of joint ventures does not include 26,991 square feet of month-to-month leases. (3) Fourth quarter 2020 expiring square footage representing the Company’s Share of joint ventures does not include 16,519 square feet of month-to-month leases. (4) Includes leases that expire on the last day of the quarter. (5) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements or deferments)) as of the lease expiration date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements. Page 50 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Expiring Office Leases—Next Eight Quarters(1) (continued) (6) Expiring rental rates have been converted from CAD to USD using the foreign currency exchange rate as of September 30, 2020. (7) Top three expiring tenants at Bentall Centre by square footage: (i) CIBC World Markets, Inc. for 36,978 square feet, (ii) Young Women’s Christian Association for 19,058 square feet, and (ii) Just Systems Canada, Inc. for 6,906 square feet. (8) Total expiring square footage consists of space occupied by the Company’s management office. (9) Top three expiring tenants by square footage: (i) Nuance Communications at 505 First for 45,568 square feet, (ii) Blue Nile at 411 First for 39,072 square feet, and (iii) Qualtrics, LLC at 83 King for 24,724 square feet. (10) Top three expiring tenants by square footage: (i) Wells Fargo Bank at Skyway Landing for 40,257 square feet, (ii) AQ Technology Partners at 333 Twin Dolphin for 6,815 square feet, and (iii) Thomas James Homes, LLC at Shorebreeze for 3,008 square feet. (11) Top three expiring tenants by square footage: (i) Iovance Biotherapeutics at Skyway Landing for 29,165 square feet, (ii) Education Elements, Inc. at Skyway Landing for 6,405 square feet, and (iii) Lastline, Inc. at Towers at Shore Center for 6,368 square feet. (12) Top three expiring tenants by square footage: (i) Ernst & Young at Shorebreeze for 20,253 square feet, (ii) Hudson Pacific Properties management office at 333 Twin Dolphin for 12,651 square feet, and (iii) Thought Stream at Skyway Landing for 8,820 square feet. (13) Top three expiring tenants by square footage: (i) General Services Administration at 901 Market for 24,285 square feet, (ii) Yank Sing at Rincon Center for 13,651 square feet, and (iii) Hudson Pacific management office at Rincon Center for 12,434 square feet. (14) Top three expiring tenants by square footage: (i) US Jade Corp at Concourse for 10,940 square feet, (ii) College Entrance Examination at Gateway for 6,451 square feet, and (iii) General Services Administration at Concourse for 4,366 square feet. (15) Top three expiring tenants by square footage: (i) Siliconware USA, Inc. at Concourse for 15,777 square feet, (ii) Robin Systems at Concourse for 13,016 square feet, and (iii) Whitehat Security, Inc. at Concourse for 8,425 square feet. (16) Top three expiring tenants by square footage: (i) GEO Semiconductor, Inc. at Metro Plaza for 13,027 square feet, (ii) Hudson Pacific Properties management office at Gateway for 12,223 square feet, and (iii) CCS Associates, Inc. at Gateway for 8,151 square feet. (17) Top three expiring tenants by square footage: (i) Globallogic, Inc. at Concourse for 28,930 square feet, (ii) Skybox Security, Inc. at Gateway for 13,269 square feet, and (iii) Contract Office Group Inc. at Concourse for 9,956 square feet. (18) Top three expiring tenants at Bentall Centre by square footage: (i) Absolute Software Corporation for 46,585 square feet, (ii) Wesgroup Properties Ltd. for 16,686 square feet, and (iii) Shank Management for 11,590 square feet. (19) Top three expiring tenants at Bentall Centre by square footage: (i) B2Gold Corporation for 24,844 square feet, (ii) Business Development Bank of Canada for 23,054 square feet, and (iii) Fiore Management & Advisory Corporation for 8,624 square feet. (20) Top three expiring tenants at Bentall Centre by square footage: (i) Lysistrata Services for 23,957 square feet, (ii) LNG Canada Development Inc. for 6,362 square feet, and (iii) RCI Capital Group for 5,888 square feet. (21) Total expiring square footage consists of Dell EMC Corporation at 505 First for 185,292 square feet. (22) Top three expiring tenants by square footage: (i) Jefferies LLC at Metro Center for 14,562 square feet, (ii) Conversica, Inc. at Metro Center for 11,243 square feet, and (iii) Z&L Properties at Metro Center for 9,037 square feet. (23) Total expiring square footage consists of: (i) Google, Inc. at 3400 Hillview for 207,857 square feet, (ii) Arnold & Porter, LLP at Page Mill Hill for 13,065 square feet, and (iii) Pilot AI Labs, Inc. at Palo Alto Square or 5,126 square feet. (24) Top three expiring tenants by square footage: (i) McKool Smith at Shorebreeze for 13,529 square feet, (ii) Coddington, Hicks & Danforth at 555 Twin Dolphin for 8,075 square feet, and (iii) Inflection.com, Inc. at 555 Twin Dolphin for 7,095 square feet. (25) Top three expiring tenants by square footage: (i) Level 3 Communications, LLC at Concourse for 13,258 square feet, (ii) Bay Microsystems, Inc. at Gateway for 12,096 square feet, and (iii) SUMCO Phoenix Corporation at Gateway for 6,053 square feet. (26) Top three expiring tenants by square footage: (i) Regus at Gateway for 44,957 square feet, (ii) Vital Connect, Inc. at Concourse for 19,296 square feet, and (iii) PNY Technologies, Inc. at Gateway for 7,211 square feet. (27) Top three expiring tenants by square footage: (i) Fenwick & West LLP at Metro Plaza for 18,428 square feet, (ii) PeerNova, Inc. at Gateway for 8,737 square feet, and (iii) CALPERS at Metro Plaza for 6,955 square feet. (28) Top three expiring tenants by square footage: (i) Qualcomm at Skyport Plaza for 376,817, (ii) Silicon Valley Leadership Group at Gateway for 8,193 square feet, and (iii) InnoGrit Corporation at Concourse for 7,281 square feet. Page 51 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Expiring Office Leases—Annual Company’s Share Percentage Annualized Square Square Percent of of Office Annualized Base Rent Per Number of Footage of Footage of Office Portfolio Base Rent Annualized Lease Square Leases Expiring Expiring Portfolio Annualized Annualized Per Leased Base Rent at Foot at Year of Lease Expiration Expiring Leases(1) Leases(2) Square Feet Base Rent(3) Base Rent Square Foot(4) Expiration Expiration(5) Vacant 1,327,035 1,233,990 10.0% 2020 58 289,879 251,430 2.0 $ 12,860,896 2.2% $ 51.15 $ 13,169,122 $ 52.38 2021 185 1,543,291 1,373,059 11.1 65,648,529 11.4 47.81 67,152,755 48.91 2022 180 1,527,570 1,351,125 11.0 67,359,916 11.6 49.85 71,692,245 53.06 2023 125 1,845,296 1,427,024 11.7 65,526,466 11.4 45.92 71,450,149 50.07 2024 124 1,798,720 1,601,638 13.0 81,734,010 14.2 51.03 91,436,765 57.09 2025 79 1,567,174 1,273,515 10.3 74,296,117 12.8 58.34 84,403,653 66.28 2026 35 482,637 423,764 3.4 26,161,395 4.5 61.74 30,982,955 73.11 2027 28 606,737 518,661 4.2 29,516,437 5.1 56.91 35,298,289 68.06 2028 20 664,804 592,680 4.8 37,704,711 6.5 63.62 46,427,328 78.33 2029 17 311,382 217,548 1.8 16,115,737 2.8 74.08 19,884,167 91.40 Thereafter 27 1,997,797 1,348,815 11.0 67,266,443 11.6 49.87 90,881,877 67.38 Building management use(6) 33 180,594 164,717 1.3 — — — — — Signed leases not commenced(7) 18 700,700 539,564 4.4 34,071,958 5.9 63.15 49,122,494 91.04 TOTAL/WEIGHTED AVERAGE 929 14,843,616 12,317,530 100.0% $ 578,262,615 100.0% $ 52.17 (8) $ 671,901,799 $ 60.62 (9) (1) Total expiring square footage does not include 26,991 square feet of month-to-month leases. (2) Total expiring square footage does not include 16,519 square feet of month-to-month leases. (3) Rent data for our office properties is presented on an annualized basis without regard to cancellation options. Annualized base rent for office properties is calculated multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) as of September 30, 2020, by (ii) 12. Annualized base rent does not reflect tenant reimbursements. (4) Annualized base rent per square foot for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases, divided by (ii) square footage under commenced leases as of September 30, 2020. (5) Annualized base rent per square foot at expiration for all lease expiration years is calculated as (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases, divided by (ii) square footage under commenced lease as of September 30, 2020. (6) Reflects management offices occupied by the Company with various expiration dates. (7) Annualized base rent per leased square foot and annualized base rent per square foot at expiration for signed leases not commenced reflects uncommenced leases for space not occupied as of September 30, 2020 and is calculated as (i) base rental payments (defined as cash base rents at expiration (before abatements or deferments)) under uncommenced leases for vacant space as of September 30, 2020, divided by (ii) square footage under uncommenced leases as of September 30, 2020. (8) Included as part of the Company’s share of total expiring square footage is 106,077 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the weighted average annualized base rent per square foot is $52.68. (9) Included as part of the Company’s share of total expiring square footage is 99,079 square feet of existing leases that have been amended or signed during third quarter 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the weighted average annualized base rent per square foot at expiration is $61.17. Page 52 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Definitions and Reconciliations
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Definitions Adjusted EBITDAre: Adjusted EBITDAre represents net income (loss) before interest, income taxes, depreciation and amortization, and before our share interest and depreciation from the unconsolidated real estate entity and further adjusted to eliminate the impact of certain non-cash items and items that we do not consider indicative of our ongoing performance. We believe that Adjusted EBITDAre is useful because it allows investors and management to evaluate and compare our performance from period to period in a meaningful and consistent manner, in addition to standard financial measurements under GAAP. Adjusted EBITDAre is not a measurement of financial performance under GAAP and should not be considered as an alternative to income attributable to common shareholders, as an indicator of operating performance or any measure of performance derived in accordance with GAAP. Our calculation of Adjusted EBITDAre may be different from the calculation used by other companies and, accordingly, comparability may be limited. Adjusted Funds from Operations (“AFFO”): Non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense and the Company’s Share of amortization of deferred financing costs, and subtracting recurring capital expenditures related to the Company’s Share of tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of the Company’s Share of straight-line rents, amortization of lease buy-out costs, amortization of above-and below-market lease intangible assets and liabilities, amortization of above-and below-market ground lease intangible assets and liabilities and amortization of loan discounts/premiums. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs. Annual Debt Service: Includes principal payments based on amortization schedule and annual interest payments of fixed rate loans and variable rate loans with effective fixed rate as a result of derivative instruments on the full principal balance. In instances where interest is paid based on a LIBOR margin, we used the current margin based on the leverage ratio as of the current period. Amount does not include interest payment of variable rate loans that are partially effectively fixed through derivative instruments. Excludes amortization of deferred financing costs and loan discounts/ premiums. Company’s Share: Non-GAAP financial measures calculated as the consolidated amount, in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). Management believes that presenting the “Company’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting the Company’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures. Company’s Share of Debt: Similar to Consolidated Debt except it includes the Company’s Share of unconsolidated joint venture debt and excludes partner’s share of consolidated joint venture partner debt. Company’s Share of Debt, Net: Similar to Company’s Share of Debt, except it includes the Company’s Share of unconsolidated joint venture cash and cash equivalents and excludes partner’s share of consolidated joint venture cash and cash equivalents. Company’s Share of Market Capitalization: Similar to Consolidated Market Capitalization except it includes the Company’s Share of Debt. Consolidated Debt: Equal to the sum of (i) Unsecured and Secured Debt and (ii) series A preferred units Consolidated Debt, Net: Similar to Consolidated debt, less consolidated cash and cash equivalents. Consolidated Market Capitalization: Equal to the sum of (i) Unsecured and Secured Debt, (ii) series A preferred units and (iii) common equity capitalization. Common equity capitalization represents the total Shares of Common Stock/Units Outstanding at End of Period multiplied by the closing price at quarter end. Consolidated Unsecured and Secured Debt: Excludes in-substance defeased debt related to our Hudson Pacific/Macerich joint venture and unamortized deferred financing costs and unamortized loan discounts/premiums related to our registered senior debt. The full amount of debt related to the Hill7 joint venture are included. Page 54 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Definitions (continued) Funds from Operations (“FFO”): Non-GAAP financial measure we believe is a useful supplemental measure of our performance. We calculate FFO in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus the Company’s Share of real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets). The calculation of FFO includes the Company’s Share of amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs. Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees. However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations. Net Operating Income (“NOI”): We evaluate performance based upon property NOI from continuing operations. NOI is not a measure of operating results or cash flows from operating activities or cash flows as measured by GAAP and should not be considered an alternative to income from continuing operations, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. We calculate NOI as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, transaction-related expenses and other non-operating items. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses. Principal Amount: Outstanding debt balances including partner share of consolidated entities and excludes unamortized deferred financing costs and loan discounts/premiums. Shares of Common Stock/Units Outstanding at End of Period: Represents shares of common stock (including unvested restricted shares), OP units outstanding and an estimate for our dilutive Outperformance Programs (“OPPs,” or individually, “OPP”), including stock grants under our 2018 OPP and 2019 OPP and 2020 PSU Plan (collectively, the “Dilutive Shares”). Weighted Average Fully Diluted Common Stock/Units Outstanding: Includes an estimate for the dilution impact of stock grants to the Company's executives under its 2018 OPP, 2019 OPP and 2020 PSU Plan. 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 ASC 260, Earnings Per Share. Page 55 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Reconciliation of Net (Loss) Income to Net Operating Income Unaudited, in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net (loss) income $ (1,362) $ 62,955 $ 19,598 $ 38,883 Adjustments: Loss (income) from unconsolidated real estate entity 105 260 (69) 345 Fee income (575) (656) (1,741) (931) Interest expense 32,492 26,590 86,839 77,492 Interest income (1,056) (1,002) (3,129) (3,034) Transaction-related expenses 181 331 440 459 Unrealized (gain) loss on non-real estate investment (513) — 2,335 — Gain on sale of real estate — (47,100) — (47,100) Impairment loss — — — 52,201 Other (income) loss (576) 333 (1,606) 258 General and administrative 17,428 17,661 53,943 54,099 Depreciation and amortization 75,052 69,781 222,331 207,892 Net Operating Income $ 121,176 $ 129,153 $ 378,941 $ 380,564 Net Operating Income Breakdown Same-Store Office cash revenues $ 150,128 $ 152,447 $ 444,837 $ 436,134 Straight-line rent 1,870 9,377 18,690 31,660 Amortization of above-market and below-market leases, net 2,330 2,603 6,916 8,221 Amortization of lease incentive costs (440) (463) (1,346) (1,226) Same-Store Office revenues 153,888 163,964 469,097 474,789 Same-Store Studios cash revenues 15,323 21,998 48,612 60,478 Straight-line rent 255 214 1,087 893 Amortization of above-market and below-market leases, net (6) — (6) — Amortization of lease incentive costs (3) (9) (22) (28) Same-Store Studio revenues 15,569 22,203 49,671 61,343 Same-Store property revenues 169,457 186,167 518,768 536,132 Same-Store Office cash expenses 54,606 54,771 159,188 152,693 Straight-line rent 365 366 1,097 1,097 Non-cash portion of interest expense 2 — 2 — Amortization of above-market and below-market ground leases, net 586 586 1,758 1,758 Same-Store Office expenses 55,559 55,723 162,045 155,548 Same-Store Studio cash expenses 9,004 11,440 27,605 32,088 Non-cash portion of interest expense 30 — 30 — Same-Store Studio expenses 9,034 11,440 27,635 32,088 Same-Store property expenses 64,593 67,163 189,680 187,636 Same-Store net operating income 104,864 119,004 329,088 348,496 Non-Same-Store net operating income 16,312 10,149 49,853 32,068 Net Operating Income $ 121,176 $ 129,153 $ 378,941 $ 380,564 Page 56 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Reconciliation of Net (Loss) Income to Company’s Share of Net Operating Income Unaudited, in thousands Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net (loss) income $ (1,362) $ 62,955 $ 19,598 $ 38,883 Adjustments: Loss (income) from unconsolidated real estate entity 105 260 (69) 345 Fee income (575) (656) (1,741) (931) Interest expense 32,492 26,590 86,839 77,492 Interest income (1,056) (1,002) (3,129) (3,034) Transaction-related expenses 181 331 440 459 Unrealized (gain) loss on non-real estate investment (513) — 2,335 — Gain on sale of real estate — (47,100) — (47,100) Impairment loss — — — 52,201 Other (income) loss (576) 333 (1,606) 258 General and administrative 17,428 17,661 53,943 54,099 Depreciation and amortization 75,052 69,781 222,331 207,892 Company's Share of NOI from Unconsolidated Real Estate Entity 2,602 2,775 7,915 3,544 Net Operating Income Partner's Share (13,296) (7,893) (28,265) (22,649) Net Operating Income Company's Share $ 110,482 $ 124,035 $ 358,591 $ 361,459 Net Operating Income Breakdown Same-Store Office cash revenues $ 132,628 $ 133,659 $ 383,771 $ 377,171 Straight-line rent 245 6,869 10,657 20,478 Amortization of above-market and below-market leases, net 2,486 2,807 6,473 7,847 Amortization of lease incentive costs (414) (436) (1,271) (1,147) Same-Store Office revenues Company’s Share 134,945 142,899 399,630 404,349 Same-Store property revenues Company’s Share 134,945 142,899 399,630 404,349 Same-Store Office cash expenses 47,930 48,063 137,311 131,346 Straight-line rent 248 253 746 746 Non-cash portion of interest expense — — — — Amortization of above-market and below-market ground leases, net 576 576 1,712 1,727 Same-Store Office expenses Company’s Share 48,754 48,892 139,769 133,819 Same-Store property expenses Company’s Share 48,754 48,892 139,769 133,819 Same-Store net operating income Company’s Share 86,191 94,007 259,861 270,530 Non-Same-Store net operating income Company’s Share 24,291 30,028 98,730 90,929 Net Operating Income Company’s Share $ 110,482 $ 124,035 $ 358,591 $ 361,459 Page 57 of 58
Hudson Pacific Properties, Inc. Supplemental Information | Third Quarter 2020 Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized) Unaudited, in thousands Three Months Ended Quarter To Date September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Net (loss) income $ (1,362) $ 7,011 $ 13,949 $ 16,963 $ 62,955 Interest income—Consolidated (1,056) (1,048) (1,025) (1,010) (1,022) Interest expense—Consolidated 32,492 27,930 26,417 28,353 26,590 Depreciation and amortization—Consolidated 75,052 73,516 73,763 74,196 69,781 EBITDA 105,126 107,409 113,104 118,502 158,304 Unconsolidated real estate entity depreciation and amortization 1,445 1,355 1,381 1,650 1,751 Unconsolidated real estate entity interest expense 630 630 930 949 966 EBITDAre 107,201 109,394 115,415 121,101 161,021 Unrealized (gain) loss on non-real estate investment (513) 2,267 581 — — Gain on sale of real estate — — — — (47,100) Other (income) expense (576) (716) (314) (366) 333 Transaction-related expenses 181 157 102 208 331 Non-cash compensation expense 4,791 4,723 4,895 4,088 5,176 Straight-line rent receivables, net (12,062) (12,062) (13,344) (12,992) (10,767) Non-cash amortization of below-market rents, net (2,464) (2,464) (2,544) (2,917) (2,810) Non-cash amortization of below-market ground rents, net 588 588 577 615 615 Amortization of lease incentive costs 466 499 472 504 498 Adjusted EBITDAre 97,612 102,386 105,840 110,241 107,297 Studio cash NOI (6,319) (5,686) (9,001) (9,698) (10,558) Office property adjusted EBITDAre 91,293 96,700 96,839 100,543 96,739 x Annualization factor 4 4 4 4 4 Annualized office property adjusted EBITDAre 365,172 386,800 387,356 402,172 386,956 Trailing 12-mo studio cash NOI 30,704 34,943 37,017 38,087 38,261 Adjusted EBITDAre (Annualized) $ 395,876 $ 421,743 $ 424,373 $ 440,259 $ 425,217 Total Consolidated unsecured and secured debt 3,087,168 2,998,350 3,260,352 2,845,459 2,744,960 Less: Consolidated cash and cash equivalents (365,294) (45,052) (392,136) (46,224) (56,777) Consolidated debt, net $ 2,721,874 $ 2,953,298 $ 2,868,216 $ 2,799,235 $ 2,688,183 Adjusted EBITDAre (annualized) / Consolidated debt, net 6.9x 7.0x 6.8x 6.4x 6.3x Page 58 of 58
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