Page 2 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth 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 or departures of key personnel; 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.
Page 3 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Table of Contents Page Executive Summary, Corporate Data, Executive Management, Board of Directors, Equity Research Coverage, Fixed Income Coverage and Rating Agencies 4 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 Compliance 24 Operational and Portfolio Information 26 In-Service Office Properties 27 In-Service Office Properties by Location 30 Studio Properties 32 Land Properties 33 Repositioning, Redevelopment, Development and Held For Sale Properties 34 Under Construction and Future Development Projects 36 Recently Completed, Under Construction and Planned Project Images 38 Office Tenant Industry Diversification 39 Fifteen Largest Office Tenants 40 Office Property Leasing Activity 42 Commenced Office Leases with Non-Recurring Upfront Abatements 44 Uncommenced Office Leases—Next Eight Quarters 45 Backfilled Office Leases—Next Eight Quarters 47 Expiring Office Leases—Next Eight Quarters 49 Expiring Office Leases—Annual 52 Definitions and Reconciliations 53 Definitions 54 Reconciliation of Net (Loss) Income to Net Operating Income 56 Reconciliation of Net (Loss) Income to Company's Share of Net Operating Income 57 Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized) 58 Corporate Headquarters: 11601 Wilshire Boulevard, 9th Floor, Los Angeles, CA 90025 (310) 445-5700 Website: HudsonPacificProperties.com Investor Relations: Laura Campbell Senior Vice President, Investor Relations and Marketing (310) 622-1702 NYSE Trading Symbol: HPP
Page 4 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Executive Summary Hudson Pacific Properties acquires, redevelops and develops creative office and studio properties in the West Coast tech and media epicenters of Los Angeles, Silicon Valley, San Francisco, Seattle and Vancouver. We are the leading publicly traded owner of office space in Silicon Valley, one of the largest independent owner/operator of studios in the U.S., and our portfolio totals over 19 million square feet, including land for development, in our core markets. Our top-tier assets combined with our leasing and management expertise have enabled us to cultivate a tenant base of premier blue-chip and growth companies, like Google and Netflix. Our strategic focus is value creation through less capital- and time-intensive repositionings and redevelopments, although our deep in-house expertise allows us to execute on a full range of opportunities—from incremental lease-up to cutting-edge new construction. Financials (Compared to Fourth Quarter 2019) • Net loss attributable to common stockholders of $8.5 million ($0.05 per diluted share) compared to net income to common stockholders of $13.6 million ($0.09 per diluted share) • FFO, excluding specified items, of $66.8 million ($0.44 per diluted share) compared to $85.4 million ($0.55 per diluted share) • Total revenue decreased 6.0% to $203.8 million Office Highlights • Executed 39 new and renewal leases totaling 279,392 square feet, with GAAP and cash rent growth of 4.9% and 4.7%, respectively • Stabilized and in-service office portfolios were 94.5% and 93.5% leased, respectively • Net operating income and cash net operating income for the consolidated 43 same-store properties decreased 8.9% and increased 4.2%, respectively Studio Highlights • Trailing 12-month occupancy for the three same-store studio properties was 90.2% • Net operating income and cash net operating income for the three same- store studio properties decreased 4.5% and 0.8%, respectively Balance Sheet • Investment grade credit rated with $1.0 billion of total liquidity with no material maturities until 2023 Dividend • Declared and paid a quarterly dividend of $0.25 per share on common stock Capital Transactions • Purchased 1918 Eighth, a 668,000-square-foot Class A office building in Seattle’s Denny Triangle for $625.0 million (before closing adjustments) through 55% / 45% Hudson Pacific/CPP Investments joint venture • Repurchased 0.9 million shares of common stock COVID-19 Update • Collected 97% of fourth quarter total rents, specifically 98% of office, 100% of studio and 51% of storefront retail rents (excludes rents deferred or abated in accordance with COVID-19-related lease amendments) • Fast-tracked more than $650,000 to artists in Los Angeles impacted by COVID-19 through the Vibrant Cities Arts Grant Post-Quarter Highlights • Pledged $20 million over five years in impact investments and philanthropic donations to support innovative and holistic solutions to homelessness within the Company’s core markets • Repurchased 0.6 million shares of common stock FFO Guidance • Provided first quarter 2021 guidance in the range of $0.45 to $0.47 per diluted share, excluding specified items Conference Call Information: Thursday, February 18, 2021 at 11:00 AM PST / 2:00 PM EST (877) 407-0784 (U.S.) | (201) 689-8560 (International)
Page 5 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Corporate Data(1) Unaudited, in thousands, except per share data December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Number of office properties owned 53 52 52 52 52 Office square feet(2) 15,550,750 14,870,607 14,856,553 14,851,524 14,850,480 Same-store office square feet(2)(3) 12,619,891 11,781,358 10,207,076 10,211,724 8,553,011 Same-store office leased rate as of end of period(3) 94.3 % 94.4 % 94.5 % 95.3 % 96.0 % Stabilized office square feet(2)(4) 13,574,582 12,909,362 12,924,852 12,689,728 12,840,086 Stabilized office leased rate as of end of period(4) 94.5 % 94.5 % 95.1 % 95.9 % 96.4 % In-service office square feet(2)(5) 14,530,261 13,865,041 13,880,531 13,876,339 14,122,684 In-service office leased rate as of end of period(5) 93.5 % 93.5 % 94.0 % 94.8 % 95.1 % 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 1,224,403 1,213,203 Same-store studio leased rate as of end of period(7) 90.2 % 91.3 % 92.7 % 92.4 % 92.6 % Non-same-store studio square feet(2) N/A N/A N/A N/A 11,200 Non-same-store studio leased rate as of end of period N/A N/A N/A N/A 81.3 % Number of land properties owned 8 7 7 7 7 Land properties estimated square feet(8) 3,187,261 2,736,825 2,681,376 2,681,376 2,681,376 Total portfolio square feet 19,962,414 18,831,835 18,762,332 18,757,303 18,756,259 Company’s share of debt, net(9)(10) $ 2,787,917 $ 2,341,602 $ 3,009,488 $ 2,928,874 $ 2,865,397 Company’s share of market capitalization(9)(10) $ 6,593,530 $ 6,081,014 $ 6,948,827 $ 6,928,704 $ 8,813,870 Adjusted EBITDAre (annualized) / Consolidated debt, net(10) 7.4x 6.4x 7.0x 6.8x 6.4x Company’s share of debt, net/Company’s share of market capitalization(9)(10) 42.3 % 38.5 % 43.3 % 42.3 % 32.5 % Share data: FFO(10), excluding specific items, per common stock/unit—diluted(11) $ 0.44 $ 0.43 $ 0.50 $ 0.54 $ 0.55 Range of closing prices(11) $ 19.26 - 27.96 $ 21.25 - 25.32 $ 19.89 - 29.27 $ 16.78 - 38.70 $ 32.83 - 37.65 Closing price at quarter end $ 24.02 $ 21.93 $ 25.16 $ 25.36 $ 37.65 Weighted average fully diluted common stock/units outstanding(10) 152,576 154,774 155,013 157,501 156,229 Shares of common stock/units outstanding at end of period(10) 154,283 154,767 156,572 157,722 157,994 (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 October 1, 2019 and still owned and included in our office portfolio as of December 31, 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 October 1, 2019 and still owned and included in our studio portfolio as of December 31, 2020. (7) Percent leased for same-store studio is the average percent leased for the twelve 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 6 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Laura Campbell Senior Vice President, Investor Relations and Marketing Drew B. Gordon Senior Vice President, Northern California Gary Hansel Senior Vice President, Southern California Bill Humphrey Senior Vice President, Sunset Studios Andrea Rupp Senior Vice President, Human Resources Andy Wattula Senior Vice President, Pacific Northwest Chuck We Senior Vice President, Western Canada Executive Management Victor J. Coleman Chief Executive Officer Mark Lammas President and Treasurer Christopher Barton Executive Vice President, Development and Capital Investments Harout Diramerian Chief Financial Officer Steven Jaffe Executive Vice President, Business Affairs Dale Shimoda Executive Vice President, Finance Arthur X. Suazo Executive Vice President, Leasing Kay L. Tidwell Executive Vice President, General Counsel and Chief Risk Officer 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.
Page 7 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth 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 Chairman of the Board, Chief Executive Officer, Hudson Pacific Properties, Inc. Theodore R. Antenucci President and Chief Executive Officer, Catellus Development Corporation Karen Brodkin Executive Vice President, Content Strategy and Development, Endeavor Richard B. Fried Managing Member, Farallon Capital Management, L.L.C. Jonathan M. Glaser Managing Member, JMG Capital Management LLC Robert L. Harris II Executive Chairman (retired), Acacia Research Corporation Christy Haubegger Executive Vice President and Chief Enterprise Inclusion Officer, WarnerMedia Mark D. Linehan President and Chief Executive Officer, Wynmark Company Robert M. Moran, Jr. Co-Founder and Co-Owner, FJM Investments LLC Barry A. Porter Managing General Partner, Clarity Partners L.P. Andrea Wong President (retired), International Production, Sony Pictures Television
Page 8 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Equity Research Coverage BMO Capital Markets Frank Lee | John Kim (415) 591-2129 | (212) 885-4115 BofA Securities James Feldman (646) 855-5808 BTIG Tom Catherwood (212) 738-6140 Citigroup Global Markets Michael Bilerman | Emmanuel Korchman (212) 816-1383 | (212) 816-1382 D.A. Davidson Barry Oxford (212) 240-9871 Goldman Sachs Richard Skidmore (801) 741-5459 Green Street Advisors Daniel Ismail (949) 640-8780 Jefferies LLC Peter Abramowitz (212) 336-7241 KeyBanc Capital Markets Craig Mailman (917) 368-2316 Mizuho Securities Omotayo Okusanya (646) 949-9672 Morgan Stanley Vikram Malhotra (212) 761-7567 Piper Sandler & Company Alexander Goldfarb (212) 466-7937 Robert W. Baird & Company David Rodgers (216) 737-7341 Scotiabank Nicholas Yulico (212) 225-6904 SMBC Nikko Securities Richard Anderson (646) 521-2351 Wells Fargo Securities Blaine Heck (443) 263-2949 Fitch Ratings Stephen Boyd (212) 908-9153 Rating Agencies Moody’s Investor Service Alice Chung (212) 553-2949 Standard & Poor’s Fernanda Hernandez (212) 438-1347
Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Financial Information
Page 10 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Consolidated Balance Sheets In thousands, except share data December 31, 2020 December 31, 2019 ASSETS Investment in real estate, net $ 7,112,269 $ 6,370,849 Cash and cash equivalents 113,686 46,224 Restricted cash 35,854 12,034 Accounts receivable, net 22,105 13,007 Straight-line rent receivables, net 225,685 195,328 Deferred leasing costs and lease intangible assets, net 285,836 285,448 U.S. Government securities 135,115 140,749 Operating lease right-of-use asset 264,880 269,029 Prepaid expenses and other assets, net 72,667 68,974 Investment in unconsolidated real estate entities 82,105 64,926 TOTAL ASSETS $ 8,350,202 $ 7,466,568 LIABILITIES AND EQUITY Liabilities Unsecured and secured debt, net $ 3,399,492 $ 2,817,910 In-substance defeased debt 131,707 135,030 Joint venture partner debt 66,136 66,136 Accounts payable, accrued liabilities and other 235,860 212,673 Operating lease liability 270,014 272,701 Lease intangible liabilities, net 49,144 31,493 Security deposits and prepaid rent 92,180 86,188 Total liabilities 4,244,533 3,622,131 Redeemable preferred units of the operating partnership 9,815 9,815 Redeemable non-controlling interest in consolidated real estate entities 127,874 125,260 Equity Hudson Pacific Properties, Inc. stockholders’ equity Common stock, $0.01 par value, 490,000,000 authorized, 151,401,365 shares and 154,691,052 shares outstanding at December 31, 2020 and 2019, respectively 1,514 1,546 Additional paid-in capital 3,469,758 3,415,808 Accumulated other comprehensive loss (8,133) (561) Total Hudson Pacific Properties, Inc. stockholders’ equity 3,463,139 3,416,793 Non-controlling interest—members in consolidated real estate entities 467,009 269,487 Non-controlling interest—units in the operating partnership 37,832 23,082 Total equity 3,967,980 3,709,362 TOTAL LIABILITIES AND EQUITY $ 8,350,202 $ 7,466,568
Page 11 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Consolidated Statements of Operations Unaudited, in thousands, except share data Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 REVENUES Office Rental $ 181,263 $ 186,914 $ 721,286 $ 708,564 Service and other revenues 3,205 6,832 14,633 25,171 Total office revenues 184,468 193,746 735,919 733,735 Studio Rental 11,989 13,339 48,756 51,340 Service and other revenues 7,386 9,765 20,290 33,107 Total studio revenues 19,375 23,104 69,046 84,447 Total revenues 203,843 216,850 804,965 818,182 OPERATING EXPENSES Office operating expenses 67,653 67,529 262,199 256,209 Studio operating expenses 9,945 13,225 37,580 45,313 General and administrative 23,939 17,848 77,882 71,947 Depreciation and amortization 77,351 74,196 299,682 282,088 Total operating expenses 178,888 172,798 677,343 655,557 OTHER INCOME (EXPENSE) Income (loss) from unconsolidated real estate entities 667 (402) 736 (747) Fee income 1,074 528 2,815 1,459 Interest expense (29,638) (28,353) (116,477) (105,845) Interest income 960 1,010 4,089 4,044 Transaction-related expenses — (208) (440) (667) Unrealized loss on non-real estate investments (128) — (2,463) — Gains on sale of real estate — — — 47,100 Impairment loss — — — (52,201) Other (expense) income (1,058) 336 548 78 Total other expense (28,123) (27,089) (111,192) (106,779) Net (loss) income (3,168) 16,963 16,430 55,846 Net income attributable to preferred units (153) (153) (612) (612) Net income attributable to participating securities (720) (62) (1,041) (692) Net income attributable to non-controlling interest in consolidated real estate entities (6,378) (3,554) (18,955) (13,352) Net loss attributable to redeemable non-controlling interest in consolidated real estate entities 1,864 489 4,571 1,994 Net loss (income) attributable to non-controlling interest in the operating partnership 79 (107) (10) (459) NET (LOSS) INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (8,476) $ 13,576 $ 383 $ 42,725 BASIC AND DILUTED PER SHARE AMOUNTS Net (loss) income attributable to common stockholders—basic $ (0.05) $ 0.09 $ 0.00 $ 0.28 Net (loss) income attributable to common stockholders—diluted $ (0.05) $ 0.09 $ 0.00 $ 0.28 Weighted average shares of common stock outstanding—basic 151,585,520 154,422,114 153,126,027 154,404,427 Weighted average shares of common stock outstanding—diluted 151,585,520 156,722,998 153,169,025 156,602,408
Page 12 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Funds from Operations(1) Unaudited, in thousands, except per share data Three Months Ended Quarter To Date December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 NET (LOSS) INCOME $ (3,168) $ (1,362) $ 7,011 $ 13,949 $ 16,963 Adjustments: Depreciation and amortization—Consolidated 77,351 75,052 73,516 73,763 74,196 Depreciation and amortization—Corporate-related (566) (581) (574) (565) (557) Depreciation and amortization—Company’s Share from unconsolidated real estate entity 1,424 1,445 1,355 1,381 1,650 Unrealized loss (gain) on non-real estate investment 128 (513) 2,267 581 — FFO attributable to non-controlling interests (13,025) (10,725) (6,801) (7,093) (7,544) FFO attributable to preferred units (153) (153) (153) (153) (153) FFO to common stockholders and unitholders 61,991 63,163 76,621 81,863 84,555 Specified items impacting FFO: Transaction-related expenses — 181 157 102 208 One-time tax reassessment management cost 5,500 — — — — One-time straight-line rent reserve — — — 2,620 — One-time prior period net property tax savings (702) — — — — One-time debt extinguishment cost — 2,654 — — 601 FFO (EXCLUDING SPECIFIED ITEMS) TO COMMON STOCKHOLDERS AND UNITHOLDERS $ 66,789 $ 65,998 $ 76,778 $ 84,585 $ 85,364 Weighted average common stock/units outstanding—diluted 152,576 154,774 155,013 157,501 156,229 FFO per common stock/unit—diluted $ 0.41 $ 0.41 $ 0.49 $ 0.52 $ 0.54 FFO (excluding specified items) per common stock/unit—diluted $ 0.44 $ 0.43 $ 0.50 $ 0.54 $ 0.55
Page 13 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (1) See definitions starting on page 54. Twelve Months Ended Nine Months Ended Six Months Ended Three Months Ended Twelve Months Ended Year To Date December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 NET INCOME $ 16,430 $ 19,598 $ 20,960 $ 13,949 $ 55,846 Adjustments: Depreciation and amortization—Consolidated 299,682 222,331 147,279 73,763 282,088 Depreciation and amortization—Corporate-related (2,286) (1,720) (1,139) (565) (2,153) Depreciation and amortization—Company’s Share from unconsolidated real estate entity 5,605 4,181 2,736 1,381 3,964 Gain on sale of real estate — — — — (47,100) Impairment loss — — — — 52,201 Unrealized loss on non-real estate investment 2,463 2,335 2,848 581 — FFO attributable to non-controlling interests (37,644) (24,619) (13,894) (7,093) (28,576) FFO attributable to preferred units (612) (459) (306) (153) (612) FFO to common stockholders and unitholders 283,638 221,647 158,484 81,863 315,658 Specified items impacting FFO: Transaction-related expenses 440 440 259 102 667 One-time tax reassessment management cost 5,500 — — — — One-time straight-line rent reserve 2,620 2,620 2,620 2,620 — One-time prior period net property tax savings (937) — — — — One-time debt extinguishment cost 2,654 2,654 — — 744 FFO (EXCLUDING SPECIFIED ITEMS) TO COMMON STOCKHOLDERS AND UNITHOLDERS $ 293,915 $ 227,361 $ 161,363 $ 84,585 $ 317,069 Weighted average common stock/units outstanding—diluted 154,084 155,422 155,908 157,501 156,113 FFO per common stock/unit—diluted $ 1.84 $ 1.43 $ 1.02 $ 0.52 $ 2.02 FFO (excluding specified items) per common stock/unit—diluted $ 1.91 $ 1.46 $ 1.03 $ 0.54 $ 2.03 Funds from Operations (continued) Unaudited, in thousands, except per share data
Page 14 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Adjusted Funds from Operations(1) Unaudited, in thousands Three Months Ended Quarter To Date December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 FFO $ 61,991 $ 63,163 $ 76,621 $ 81,863 $ 84,555 Adjustments: GAAP non-cash revenue (straight-line rent and above-below-market rents) (806) (5,230) (14,330) (15,884) (15,344) GAAP non-cash expense (straight-line rent expense and above- below-market ground rent) 826 827 826 826 853 Amortization of deferred financing costs and loan discounts/ premiums, net 1,639 4,361 1,281 1,283 1,875 Recurring capital expenditures, tenant improvements and lease commissions (20,149) (19,922) (20,980) (24,144) (35,205) Non-cash compensation expense 8,314 4,791 4,723 4,895 4,088 AFFO $ 51,815 $ 47,990 $ 48,141 $ 48,839 $ 40,822 Dividends paid to common stock and unitholders $ 38,370 $ 38,853 $ 38,890 $ 38,883 $ 39,129 AFFO payout ratio 74.1 % 81.0 % 80.8 % 79.6 % 95.9 % Twelve Months Ended Nine Months Ended Six Months Ended Three Months Ended Twelve Months Ended Year To Date December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 FFO $ 283,638 $ 221,647 $ 158,484 $ 81,863 $ 315,658 Adjustments: GAAP non-cash revenue (straight-line rent and above-below-market rents) (36,250) (35,444) (30,214) (15,884) (58,891) GAAP non-cash expense (straight-line rent expense and above- below-market ground rent) 3,305 2,479 1,652 826 3,412 Amortization of deferred financing costs and loan discounts/ premiums, net 8,564 6,925 2,564 1,283 6,324 Recurring capital expenditures, tenant improvements and lease commissions (85,195) (65,046) (45,124) (24,144) (145,119) Non-cash compensation expense 22,723 14,409 9,618 4,895 19,481 AFFO $ 196,785 $ 144,970 $ 96,980 $ 48,839 $ 140,865 Dividends paid to common stock and unitholders $ 154,996 $ 116,626 $ 77,773 $ 38,883 $ 157,825 AFFO payout ratio 78.8 % 80.4 % 80.2 % 79.6 % 112.0 % (1) See definitions starting on page 54.
Page 15 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Same-Store Property Performance—Consolidated(1) Unaudited, in thousands, except number of properties and square feet SAME-STORE ANALYSIS—NET OPERATING INCOME Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME(6) Total office revenues $ 166,333 (7) $ 176,504 (5.8) % $ 622,789 (7) $ 637,989 (2.4) % Total studio revenues 19,375 23,104 (16.1) 69,046 84,447 (18.2) Same-store revenues 185,708 199,608 (7.0) 691,835 722,436 (4.2) Total office expenses 59,643 (8) 59,421 0.4 217,468 (8) 211,166 (9) 3.0 Total studio expenses 9,945 (10) 13,225 (24.8) 37,580 (10) 45,313 (17.1) Same-store expenses 69,588 72,646 (4.2) 255,048 256,479 (0.6) Same-store office net operating income 106,690 117,083 (8.9) 405,321 426,823 (5.0) NOI margin 64.1 % 66.3 % (2.2) 65.1 % 66.9 % (1.8) Same-store studio net operating income 9,430 9,879 (4.5) 31,466 39,134 (19.6) NOI margin 48.7 % 42.8 % 5.9 45.6 % 46.3 % (0.7) TOTAL SAME-STORE NET OPERATING INCOME $ 116,120 $ 126,962 (8.5) % $ 436,787 $ 465,957 (6.3) % NOI margin 62.5 % 63.6 % (1.1) 63.1 % 64.5 % (1.4) SAME-STORE STATISTICS Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE OFFICE STATISTICS(2)(3) Number of properties 43 43 39 39 Rentable square feet 11,131,625 11,131,625 10,187,240 10,187,240 Ending % leased 93.8 % 96.9 % (3.1) % 93.6 % 96.9 % (3.3) % Ending % occupied 93.0 % 96.3 % (3.3) % 92.9 % 96.4 % (3.5) % Average % occupied for the period 93.2 % 95.0 % (1.8) % 93.9 % 94.7 % (0.8) % 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) 90.2 % 92.4 % (2.2) % 90.2 % 92.4 % (2.2) %
Page 16 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Same-Store Property Performance—Consolidated(1) (continued) Unaudited, in thousands, except number of properties and square feet (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 December 31, 2020 defined as all properties owned and included in our stabilized office portfolio as of October 1, 2019 and still owned and included in the stabilized office portfolio as of December 31, 2020. Same-store office for the twelve months ended December 31, 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 December 31, 2020. (3) See pages 27 and 28 for same-store office properties. (4) Same-store studio for the three months ended December 31, 2020 defined as all properties owned and included in our studio portfolio as of October 1, 2019 and still owned and included in our studio portfolio as of December 31, 2020. Same-store studio for the twelve months ended December 31, 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 December 31, 2020. (5) Percent occupied for same-store studio is the average percent occupied for the twelve months ended December 31, 2020. (6) See page 56 for the reconciliation of net (loss) income to net operating income (NOI). (7) Same-store office revenues for the three months and twelve months ended December 31, 2020 included write-offs of accrued straight-line rent receivables totaling $1.4 million and $4.8 million, respectively. Same-store office revenues for the three months and twelve months ended December 31, 2020 included uncollected cash rents totaling $3.6 million and $8.3 million, respectively. (8) Same-store office for the three months and twelve months ended December 31, 2020 included a one-time property tax increase of $1.6 million and $1.1 million, respectively, resulting from reassessments at ICON and CUE. Adjusted for this item, the consolidated same-store office net operating income for the three months and twelve months ended December 31, 2020 would have been (7.5)% and (4.8)%, respectively. During the same time periods, the consolidated same-store office net operating income (cash basis) would have been 5.7% and 0.9%, respectively. (9) Same-store office for the twelve months ended December 31, 2019 included a one-time prior year property tax savings at Rincon Center and 275 Brannan for $3.2 million. (10) Same-store studio for the three months and twelve months ended December 31, 2020 included a net one-time property tax savings of $2.2 million and $2.1 million, respectively. Adjusted for this item, the consolidated same-store studio net operating income for the three months and twelve months ended December 31, 2020 would have been (26.6)% and (24.9)%, respectively. During the same time periods, the consolidated same-store studio net operating income (cash basis) would have been (23.3)% and (25.0)%, respectively. SAME-STORE ANALYSIS—NET OPERATING INCOME (CASH BASIS) Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME (CASH BASIS) Total office cash revenues $ 166,219 $ 161,703 2.8 % $ 600,125 $ 591,550 1.4 % Total studio cash revenues 19,539 22,923 (14.8) 68,150 83,400 (18.3) Same-store cash revenues 185,758 184,626 0.6 668,275 674,950 (1.0) Total office cash expenses 58,687 (8) 58,469 0.4 213,657 (8) 207,359 (9) 3.0 Total studio cash expenses 9,916 (10) 13,225 (25.0) 37,521 (10) 45,313 (17.2) Same-store cash expenses 68,603 71,694 (4.3) 251,178 252,672 (0.6) Same-store office net operating income (cash basis) 107,532 103,234 4.2 386,468 384,191 0.6 NOI margin 64.7 % 63.8 % 0.9 64.4 % 64.9 % (0.5) Same-store studio net operating income (cash basis) 9,623 9,698 (0.8) 30,629 38,087 (19.6) NOI margin 49.3 % 42.3 % 7.0 44.9 % 45.7 % (0.8) SAME-STORE NET OPERATING INCOME (CASH BASIS) $ 117,155 $ 112,932 3.7 % $ 417,097 $ 422,278 (1.2) % NOI margin 63.1 % 61.2 % 1.9 62.4 % 62.6 % (0.2)
Page 17 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Same-Store Property Performance—Company’s Share(1) Unaudited, in thousands, except number of properties and square feet SAME-STORE ANALYSIS—NET OPERATING INCOME Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME(4) Total office revenues $ 141,454 (5) $ 150,131 (5.8) % $ 530,746 (5) $ 542,965 (2.3) % Same-store revenues 141,454 150,131 (5.8) 530,746 542,965 (2.3) Total office expenses 50,208 51,439 (2.4) 186,391 181,192 (6) 2.9 Same-store expenses 50,208 51,439 (2.4) 186,391 181,192 2.9 TOTAL SAME-STORE NET OPERATING INCOME $ 91,246 $ 98,692 (7.5) % $ 344,355 $ 361,773 (4.8) % NOI margin 64.5 % 65.7 % (1.2) 64.9 % 66.6 % (1.7) SAME-STORE STATISTICS Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE OFFICE STATISTICS(2)(3) Number of properties 40 40 36 36 Rentable square feet 9,877,278 9,877,278 8,936,367 8,936,367 Ending % leased 93.1 % 96.5 % (3.4) % 92.9 % 96.5 % (3.6) % Ending % occupied 92.2 % 95.8 % (3.6) % 92.0 % 96.0 % (4.0) % Average % occupied for the period 93.3 % 94.4 % (1.1) % 93.6 % 94.4 % (0.8) % SAME-STORE ANALYSIS—NET OPERATING INCOME (CASH BASIS) Three Months Ended December 31, Year Ended December 31, 2020 2019 % change 2020 2019 % change SAME-STORE NET OPERATING INCOME (CASH BASIS) Total office cash revenues $ 142,511 $ 141,989 0.4 % $ 516,519 $ 509,672 1.3 % Same-store cash revenues 142,511 141,989 0.4 516,519 509,672 1.3 Total office cash expenses 49,383 50,614 (2.4) 183,094 177,895 (6) 2.9 Same-store cash expenses 49,383 50,614 (2.4) 183,094 177,895 2.9 SAME-STORE NET OPERATING INCOME (CASH BASIS) $ 93,128 $ 91,375 1.9 % $ 333,425 $ 331,777 0.5 % NOI margin 65.3 % 64.4 % 0.9 64.6 % 65.1 % (0.5)
Page 18 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Same-Store Property Performance—Company’s Share(1) (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 twelve months ended December 31, 2020. Included as part of the Company’s Share of same-store population for the three months ended December 31, 2020 is our unconsolidated joint venture, Bentall Centre, that was acquired during second quarter 2019. (2) Same-store office for the three months ended December 31, 2020 defined as the Company’s Share of all properties owned and included in our stabilized office portfolio as of October 1, 2019 and still owned and included in the stabilized office portfolio as of December 31, 2020. Same-store office for the twelve months ended December 31, 2020 defined as the Company’s Share of all properties owned and included in our office portfolio as of January 1, 2019 and still owned and included in our office portfolio as of December 31, 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 twelve months ended December 31, 2020 included write-offs of accrued straight-line rent receivables totaling $1.3 million and $4.6 million, respectively. Same-store office revenues for the three months and twelve months ended December 31, 2020 included uncollected cash rents totaling $3.0 million and $7.1 million, respectively. (6) Same-store office for the twelve months ended December 31, 2019 included a one-time prior year property tax savings at Rincon Center and 275 Brannan for $3.2 million.
Page 19 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Net Operating Income Detail (NOI) Three Months Ended December 31, 2020 | Unaudited, in thousands Same-Store Office Properties(1) Same-Store Studio Properties(2) Non-Same-Store Office Properties(3) Repositioning/ Redevelopment /Development Properties(4) Lease-Up Properties(3) Total Properties REVENUE Cash rent $ 136,175 $ 11,811 $ 4,360 $ — $ 10,329 $ 162,675 Cash tenant recoveries 27,063 342 571 15 1,711 29,702 Straight-line rent (1,375) (154) 580 — 124 (825) Amortization of above-market and below-market leases, net 1,928 6 215 — 29 2,178 Amortization of lease incentive costs (439) (16) — — (23) (478) Total rental revenue 163,352 11,989 5,726 15 12,170 193,252 Service and other revenues 2,981 7,386 85 14 125 10,591 Total revenue 166,333 19,375 5,811 29 12,295 203,843 OPERATING EXPENSES Property operating expenses 58,687 9,916 2,272 — 5,736 76,611 Straight-line rent 366 — — — — 366 Non-cash portion of interest expense 4 29 — — — 33 Amortization of above-market and below-market ground leases, net 586 — — — 2 588 Total operating expenses 59,643 9,945 2,272 — 5,738 77,598 TOTAL CONSOLIDATED NOI(5) $ 106,690 $ 9,430 $ 3,539 $ 29 $ 6,557 $ 126,245 COMPANY’S SHARE OF NOI FROM UNCONSOLIDATED REAL ESTATE ENTITY — — 3,174 (6) — — 3,174 TOTAL NOI ATTRIBUTABLE TO NON-CONTROLLING INTEREST 12,619 (7) 3,642 (8) 347 (9) 95 (10) — 16,703 Square feet(11) 11,131,625 1,224,403 954,691 1,020,489 955,679 15,286,887 Ending % leased 93.8 % 90.2 % 97.1 % 57.2 % 78.3 % 90.3 % Ending % occupied 93.0 % 90.2 % 96.0 % — % 78.1 % 85.8 % NOI margin 64.1 % 48.7 % 60.9 % 100.0 % 53.3 % 61.9 % RECONCILIATION TO CASH NOI TOTAL NOI $ 106,690 $ 9,430 $ 3,539 $ 29 $ 6,557 $ 126,245 Straight-line rent, net 1,741 154 (580) — (124) 1,191 Non-cash portion of interest expense 4 29 — — — 33 Amortization of above-market and below-market leases, net (1,928) (6) (215) — (29) (2,178) Amortization of lease incentive costs 439 16 — — 23 478 Amortization of above-market and below-market ground leases, net 586 — — — 2 588 TOTAL CONSOLIDATED CASH NOI $ 107,532 $ 9,623 $ 2,744 $ 29 $ 6,429 $ 126,357 COMPANY’S SHARE OF CASH NOI FROM UNCONSOLIDATED REAL ESTATE ENTITY — — 2,118 (6) — — 2,118 TOTAL CASH NOI ATTRIBUTABLE TO NON-CONTROLLING INTERESTS 12,229 (7) 3,735 (8) 371 (9) 95 (10) — 16,430
Page 20 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (1) See pages 27 and 28 for same-store office for the three months ended December 31, 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 pages 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, CUE and EPIC. (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 55% of the ownership interest in the consolidated joint venture that owns 1918 Eighth. (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. Net Operating Income Detail (NOI) (continued)
Page 21 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Debt Summary As of December 31, 2020 | Unaudited, in thousands Unsecured revolving credit facility Principal Amount(1) Interest Rate(2)(3) Contractual Maturity Date(4) Annual Debt Service(1) Balance at 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 Amount(1) Interest Rate(2) Contractual Maturity Date Annual Debt Service(1) Balance at 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 Amount(1) Interest Rate(2) Contractual Maturity Date Annual Debt Service(1) Balance at Maturity Issue Price as Percentage of Par Effective Yield 3.95% Registered senior notes—October 2017 $ 400,000 3.95% 11/1/2027 $ 15,800 $ 400,000 99.815 % 3.97% 4.65% Registered senior notes—February 2019 500,000 4.65% 4/1/2029 23,250 500,000 100.427 % 4.61% 3.25% Registered senior notes—October 2019 400,000 3.25% 1/15/2030 13,000 400,000 99.268 % 3.46% TOTAL $ 1,300,000 $ 52,050 $ 1,300,000 Secured notes Principal Amount(1) Interest Rate(2) Contractual Maturity Date Annual Debt Service(1) Balance at Maturity Company’s Share Undrawn Capacity Hollywood Media Portfolio(5) $ 900,000 LIBOR + 2.15% 8/9/2022 $ — $ 900,000 $ 459,000 $ — Acquired Hollywood Media Portfolio debt(5) (107,814) LIBOR + 3.31% 8/9/2022 — (107,814) (107,814) — Hollywood Media Portfolio, net 792,186 — 792,186 351,186 — 10950 Washington(6) 25,717 5.32% 3/11/2022 2,003 24,981 25,717 — One Westside and 10850 Pico 106,073 LIBOR + 1.70% 12/18/2023 — 106,073 79,555 308,527 Element LA 168,000 4.59% 11/6/2025 7,716 168,000 168,000 — 1918 Eighth(7) 314,300 LIBOR + 1.70% 12/18/2025 — 314,300 172,865 — Hill7(8) 101,000 3.38% 11/6/2028 3,414 101,000 55,550 — TOTAL $ 1,507,276 $ 13,133 $ 1,506,540 $ 852,873 $ 308,527
Page 22 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Debt Summary (continued) As of December 31, 2020 | Unaudited, in thousands Other consolidated debt Principal Amount(1) Interest Rate(2) Contractual Maturity Date Annual Debt Service(1) Balance at Maturity Company’s Share In-substance defeased debt(9) $ 131,707 4.47% 10/1/2022 $ 9,391 $ 125,489 $ 98,780 Joint venture debt(10) 66,136 4.50% 10/9/2028 $ 2,976 $ 66,136 $ — Unconsolidated debt Principal Amount(1) Interest Rate(2) Contractual Maturity Date Annual Debt Service(1) Balance at Maturity Company’s Share Bentall Centre(11) $ 499,867 CDOR + 1.75% 7/1/2024 $ — $ 499,867 $ 99,973 (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 December 31, 2020, no such election had been made. (4) The maturity date may be extended once for an additional one-year term. (5) 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 $475.0 million of the outstanding balance has been effectively fixed through the use of interest rate swaps. As of December 31, 2020, the LIBOR component of the interest rate was fixed at 1.76% with respect to $350.0 million and 1.43% with respect to $125.0 million of the Hollywood Media Portfolio loan, respectively. The interest on the full amount has been effectively capped at 3.50% per annum through the use of an interest rate cap. (6) Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. (7) On December 18, 2020 we acquired, through a joint venture with CPPIB, the 1918 Eighth office property located in Seattle, Washington. We own 55% of the ownership interest in the consolidated joint venture that owns the 1918 Eighth property. The full amount of the loan is shown. This loan has an initial interest rate of LIBOR plus 1.70% per annum and is interest only through the five-year term. (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 December 31, 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 23 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Capital Structure As of December 31, 2020 | Unaudited, in thousands, except share data and percentages Shares/Units Aggregate Principal Amount or $ Equivalent Unsecured private placement $ 625,000 Unsecured registered senior notes 1,300,000 Secured debt 1,507,276 Total Consolidated unsecured and secured debt(1) $ 3,432,276 Add: Series A preferred units 392,598 9,815 Total Consolidated debt(1) $ 3,442,091 Less: Cash and cash equivalents (113,686) Total Consolidated debt, net(1) $ 3,328,405 Add: Company’s share of unconsolidated real estate entity debt(2) 99,973 Less: Partner’s share of consolidated debt(3) (654,403) Less: Company’s share of unconsolidated real estate entity cash and cash equivalents (3,060) Add: Partner’s share of cash and cash equivalents 17,002 Company’s share of debt, net(1) $ 2,787,917 EQUITY Common stock 151,401,365 $ 3,636,661 Operating partnership units 1,321,083 31,732 Restricted stock and units 1,214,077 29,162 Dilutive shares(1) 346,126 8,314 TOTAL EQUITY 154,282,651 $ 3,705,869 (4) CONSOLIDATED MARKET CAPITALIZATION(1) $ 7,147,960 COMPANY’S SHARE OF MARKET CAPITALIZATION(1) $ 6,593,530 CONSOLIDATED DEBT, NET/CONSOLIDATED MARKET CAPITALIZATION 46.6 % COMPANY’S SHARE OF DEBT, NET/COMPANY’S SHARE OF MARKET CAPITALIZATION 42.3 % (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 December 31, 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 December 31, 2020 closing price at $24.02 per share of common stock.
Page 24 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Unsecured and Secured Debt Maturities, Composition and Covenant Compliance Unaudited, in thousands DEBT COMPOSITION Weighted Average Amount % of Total Debt Interest Rate(3) Years to Maturity COMPANY’S SHARE OF SECURED AND UNSECURED DEBT(1) Unsecured debt $ 1,925,000 66.9% 4.1% 6.9 Secured debt(4) 952,846 33.1 2.7% 3.4 TOTAL $ 2,877,846 100.0% 5.8 COMPANY’S SHARE OF FLOATING AND FIXED-RATE DEBT Floating-rate debt $ 352,393 12.2% 2.0% 4.1 Fixed-rate debt(4)(5) 2,525,453 87.8 3.9% 6.0 TOTAL $ 2,877,846 100.0% 5.8 Weighted average stated interest rate(3) 3.7% GAAP effective rate including unamortized deferred financing costs and loan discounts/premiums(6) 3.8% DEBT COVENANT COMPLIANCE Covenant Actual Performance UNSECURED REVOLVING CREDIT FACILITY, TERM LOAN AND PRIVATE PLACEMENT(7) Total liabilities to total asset value ≤ 60% 38.6% Unsecured indebtedness to unencumbered asset value ≤ 60% 36.6% Adjusted EBITDA to fixed charges ≥ 1.5x 3.5x Secured indebtedness to total asset value ≤ 45% 17.8% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.5x UNSECURED REGISTERED SENIOR NOTES(8) Debt to total assets ≤ 60% 40.8% Total unencumbered assets to unsecured debt ≥ 150% 288.9% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x Secured debt to total assets ≤ 45% 18.6%
Page 25 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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 attributable 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 December 31, 2020. (2) Includes $351.2 million related to the Hollywood Media Portfolio loan maturing August 8, 2022. This loan has an initial term of two years from the first payment date with three one-year extension options, subject to certain requirements. (3) Rates as of December 31, 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 December 31, 2020. (4) 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 $475.0 million of the outstanding balance has been effectively fixed through the use of interest rate swaps. As of December 31, 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. The interest on the full amount has been effectively capped at 3.50% per annum through the use of an interest rate cap. (5) Includes instruments of fixed-rate debt and effective fixed-rate debt as a result of derivative instruments on the full principal balance. (6) Rates are as of December 31, 2020 and include deferred financing costs and loan discounts/premiums. (7) 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 December 31, 2020. As of December 31, 2020, the operating partnership was in compliance with both the prior amended and restated credit agreements and the Facility. (8) On 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. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million of 3.25% Senior Notes, which were issued at 99.268% of par. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes, 4.65% Senior Notes and 3.25% Senior Notes based on the financial results as of December 31, 2020. As of December 31, 2020, the operating partnership was in compliance with such indentures. Unsecured and Secured Debt Maturities, Composition and Covenant Compliance (continued)
Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Operational and Portfolio Information
Page 27 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 In-Service Office Properties(1) Submarket Square Feet(2) Percent Occupied(3) Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4) SAME-STORE(5) Vancouver, British Columbia Bentall Centre(6)(7) Downtown Vancouver 1,488,266 97.8 % 98.4 % $ 40,724,699 $ 27.97 Subtotal 1,488,266 97.8 98.4 40,724,699 27.97 Greater Seattle, Washington Northview Center Lynnwood 182,009 63.6 63.6 2,730,690 23.60 Met Park North Denny Triangle 183,355 100.0 100.0 5,723,658 31.22 Hill7(8) Denny Triangle 285,310 99.1 99.1 11,023,376 39.01 450 Alaskan Pioneer Square 170,974 95.4 95.4 6,700,074 41.08 411 First Pioneer Square 163,768 87.3 89.6 4,987,839 34.90 505 First Pioneer Square 288,009 100.0 100.0 7,260,428 25.21 83 King Pioneer Square 183,939 91.5 91.5 7,226,240 42.94 Subtotal 1,457,364 92.2 92.5 45,652,305 33.97 San Francisco Bay Area, California 1455 Market(8) San Francisco 1,034,977 99.3 99.3 54,373,248 52.92 275 Brannan San Francisco 57,120 100.0 100.0 4,646,712 81.35 625 Second San Francisco 138,094 100.0 100.0 8,299,424 60.10 875 Howard San Francisco 286,003 99.9 99.9 15,353,671 53.74 901 Market San Francisco 205,530 100.0 100.0 12,764,083 62.10 Rincon Center(9) San Francisco 539,461 96.4 96.4 32,086,340 61.68 Ferry Building(8) San Francisco 268,018 92.9 92.9 21,279,024 85.50 Towers at Shore Center Redwood Shores 334,483 91.1 91.1 21,772,467 71.45 Skyway Landing Redwood Shores 247,173 80.8 80.8 11,529,578 57.70 555 Twin Dolphin Redwood Shores 198,936 84.7 84.7 10,645,308 63.15 Palo Alto Square Palo Alto 333,254 88.1 88.1 26,530,599 90.33 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 15,008,606 72.21 Clocktower Square Palo Alto 100,655 44.6 100.0 4,069,401 90.73 Foothill Research Center Palo Alto 195,385 100.0 100.0 14,291,460 73.15 Page Mill Center(10) Palo Alto 94,542 100.0 100.0 6,074,841 64.26 Page Mill Hill Palo Alto 182,676 82.0 82.0 11,704,377 78.14 Gateway North San Jose 609,093 87.3 87.3 22,287,416 41.90 1740 Technology North San Jose 206,879 99.5 99.5 8,597,223 41.76 Concourse North San Jose 944,386 92.0 92.2 34,413,114 39.61 Metro Plaza(6)(11) North San Jose 408,594 91.0 91.0 15,912,333 42.78 Skyport Plaza North San Jose 418,086 96.2 96.2 15,256,242 37.92 Techmart Santa Clara 284,440 78.8 78.8 10,938,343 48.77 Subtotal 7,338,541 92.5 93.3 381,124,793 56.13
Page 28 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 In-Service Office Properties(1) (continued) Submarket Square Feet(2) Percent Occupied(3) Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4) Los Angeles, California 6922 Hollywood Hollywood 202,528 75.7 75.7 8,290,673 54.06 6040 Sunset(12) Hollywood 114,958 100.0 100.0 6,414,656 55.80 ICON(12) Hollywood 326,792 100.0 100.0 19,492,518 59.65 CUE(12) Hollywood 94,386 100.0 100.0 5,696,484 60.35 EPIC(6)(12) Hollywood 301,127 100.0 100.0 20,597,087 68.40 Fourth & Traction(6) Downtown Los Angeles 131,701 93.5 100.0 5,383,660 43.74 Maxwell(6)(13) Downtown Los Angeles 102,963 94.8 94.8 — (13) — 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 3,042,105 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 89.6 92.7 20,954,152 46.73 Element LA West Los Angeles 284,037 100.0 100.0 17,343,691 61.06 Subtotal 2,335,720 95.1 96.1 117,926,742 53.11 Total same-store 12,619,891 93.6 94.3 585,428,539 49.57 NON-SAME-STORE Greater Seattle, Washington 1918 Eighth(8) Denny Triangle 668,109 98.1 99.6 20,075,870 30.62 Subtotal 668,109 98.1 99.6 20,075,870 30.62 San Francisco Bay Area, California Shorebreeze Redwood Shores 230,932 89.0 89.0 13,009,783 63.26 Subtotal 230,932 89.0 89.0 13,009,783 63.26 Los Angeles, California 10850 Pico(14) West Los Angeles 55,650 100.0 100.0 2,179,567 39.17 Subtotal 55,650 100.0 100.0 2,179,567 39.17 Total non-same-store 954,691 96.0 97.1 35,265,220 38.46 Total Stabilized 13,574,582 93.8 94.5 620,693,759 48.77 Company’s Share of Total Stabilized 10,944,413 92.7 93.5 513,952,560 50.67 LEASE-UP Greater Seattle, Washington 95 Jackson Pioneer Square 35,904 74.3 74.3 1,110,164 41.64 Subtotal 35,904 74.3 74.3 1,110,164 41.64 San Francisco Bay Area, California Metro Center Foster City 736,986 79.1 79.4 34,577,275 59.33 333 Twin Dolphin Redwood Shores 182,789 74.9 74.9 8,243,745 60.22 Subtotal 919,775 78.2 78.5 42,821,020 59.50
Page 29 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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 December 31, 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 December 31, 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 December 31, 2020. Annualized base rent does not reflect tenant reimbursements. (5) Defined as all properties owned and included in our stabilized office portfolio as of October 1, 2019 and still owned and included in the stabilized office portfolio as of December 31, 2020. (6) Bentall Centre, Metro Plaza, EPIC, Fourth & Traction and Maxwell are not part of same-store office for the twelve months ended December 31, 2020. Same-store office for the twelve months ended December 31, 2020 is 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 December 31, 2020. (7) 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 December 31, 2020. (8) We own 55% of the ownership interest in the consolidated joint ventures that own Hill7, 1455 Market, Ferry Building and 1918 Eighth. (9) 20,047 square feet at Rincon Center was taken off-line for repositioning as of third quarter 2019. An additional 6,444 square feet was take off-line in subsequent quarters. The total repositioning space was re-measured during fourth quarter 2020 to 36,905 square feet. (10) 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. (11) 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. (12) We own 51% of the ownership interest in the consolidated joint venture that owns 6040 Sunset, ICON, CUE and EPIC. (13) 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. (14) 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. (15) Included as part of total in-service occupied and leased square footage is 132,422 square feet of existing leases that have been amended or signed during 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $49.82. (16) Included as part of the Company’s share of total in-service occupied and leased square footage is 121,141 square feet of existing leases that have been amended or signed during 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $51.82. In-Service Office Properties(1) (continued) Submarket Square Feet(2) Percent Occupied(3) Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4) Total lease-up 955,679 78.1 % 78.3 % $ 43,931,184 $ 58.86 TOTAL IN-SERVICE 14,530,261 92.7 % 93.5 % $ 664,624,943 $ 49.33 (15) COMPANY’S SHARE OF TOTAL IN-SERVICE 11,900,092 91.5 % 92.3 % $ 557,883,744 $ 51.24 (16)
Page 30 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 In-Service Office Properties by Location(1) 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 December 31, 2020. Properties Square Feet(2) Occupied Square Feet Percent Occupied(3) Leased Square Feet Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4) STABILIZED Vancouver, British Columbia Downtown Vancouver(5) 1 1,488,266 1,455,956 97.8 % 1,464,897 98.4 % $ 40,724,699 $ 27.97 Subtotal 1 1,488,266 1,455,956 97.8 1,464,897 98.4 40,724,699 27.97 Greater Seattle, Washington Lynnwood 1 182,009 115,728 63.6 115,728 63.6 2,730,690 23.60 Denny Triangle 3 1,136,774 1,121,556 98.7 1,131,501 99.5 36,822,904 32.83 Pioneer Square 4 806,690 762,321 94.5 766,116 95.0 26,174,581 34.34 Subtotal 8 2,125,473 1,999,605 94.1 2,013,345 94.7 65,728,175 32.87 San Francisco Bay Area, California San Francisco 7 2,529,203 2,483,026 98.2 2,483,026 98.2 148,802,502 59.93 Redwood Shores 4 1,011,524 878,790 86.9 878,790 86.9 56,957,136 64.81 Palo Alto 7 1,157,268 1,029,028 88.9 1,084,833 93.7 80,970,267 78.69 North San Jose 5 2,587,038 2,380,856 92.0 2,382,839 92.1 96,466,328 40.52 Santa Clara 1 284,440 224,271 78.8 224,271 78.8 10,938,343 48.77 Subtotal 24 7,569,473 6,995,971 92.4 7,053,759 93.2 394,134,576 56.34 Los Angeles, California Hollywood 5 1,039,791 990,626 95.3 990,626 95.3 60,491,418 61.06 West Los Angeles 7 1,116,915 1,064,847 95.3 1,080,529 96.7 54,231,231 50.93 Downtown Los Angeles 2 234,664 220,676 94.0 229,280 97.7 5,383,660 24.40 Subtotal 14 2,391,370 2,276,149 95.2 2,300,435 96.2 120,106,309 52.77 Total Stabilized 47 13,574,582 12,727,681 93.8 12,832,436 94.5 620,693,759 48.77 Company's Share of Total Stabilized 47 10,944,413 10,142,192 92.7 10,235,319 93.5 513,952,560 50.67
Page 31 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 In-Service Office Properties by Location(1) (continued) Properties Square Feet(2) Occupied Square Feet Percent Occupied(3) Leased Square Feet Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4) LEASE-UP Greater Seattle, Washington Pioneer Square 1 35,904 26,661 74.3 26,661 74.3 1,110,164 41.64 Subtotal 1 35,904 26,661 74.3 26,661 74.3 1,110,164 41.64 San Francisco Bay Area, California Foster City 1 736,986 582,763 79.1 585,013 79.4 34,577,275 59.33 Redwood Shores 1 182,789 136,903 74.9 136,903 74.9 8,243,745 60.22 Subtotal 2 919,775 719,666 78.2 721,916 78.5 42,821,020 59.50 Total Lease-up 3 955,679 746,327 78.1 748,577 78.3 43,931,184 58.86 TOTAL IN-SERVICE 50 14,530,261 13,474,008 92.7 % 13,581,013 93.5 % $ 664,624,943 $ 49.33 (6) COMPANY'S SHARE OF TOTAL IN-SERVICE 50 11,900,092 10,888,519 91.5 % 10,983,896 92.3 % $ 557,883,744 $ 51.24 (7) 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 132,422 square feet of existing leases that have been amended or signed during 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $49.82. (7) Included as part of the Company’s share of total in-service occupied and leased square footage is 121,141 square feet of existing leases that have been amended or signed during 2020 to pay percent rent in lieu of base rent. Excluding the impact of these tenants, the annualized base rent per square foot is $51.82.
Page 32 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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 December 31, 2020. (2) Percent leased for same-store studio is the average percent leased for the twelve months ended December 31, 2020. (3) Annual base rent for same-store studio reflects actual base rent for the twelve months ended December 31, 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 December 31, 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. Square Feet Percent of Total Percent Leased Annual Base Rent Annual Base Rent Per Leased Square Foot Sunset Gower Studios 531,756 43.4 % 91.8 % $ 18,793,404 $ 38.49 Sunset Bronson Studios 308,026 25.2 99.1 12,434,853 40.74 Sunset Las Palmas Studios 384,621 31.4 80.7 13,754,831 45.11 Total same-store studio(1) 1,224,403 100.0 % 90.2 % (2) $ 44,983,088 (3) $ 40.74 (4) TOTAL STUDIO 1,224,403 100.0 % 90.2 % $ 44,983,088 $ 40.74 COMPANY'S SHARE OF TOTAL STUDIO(5) 624,446 90.2 % $ 22,941,375 $ 40.74 Studio Properties
Page 33 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Land Properties (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—Development. 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 December 31, 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. (7) We own 50% of the ownership interest in the unconsolidated joint venture that owns Sunset LA—Development. Submarket Square Feet(1) Percent of Total Vancouver, British Columbia Bentall Centre—Development(2) Downtown Vancouver 450,000 14.1 % Subtotal 450,000 14.1 % Greater Seattle, Washington Washington 1000(3) Denny Triangle 538,164 16.9 % Subtotal 538,164 16.9 % San Francisco Bay Area, California Cloud10 North San Jose 350,000 11.0 % Subtotal 350,000 11.0 % Los Angeles, California Sunset Bronson Studios Lot D—Development(4)(5) Hollywood 19,816 0.6 % Sunset Gower Studios—Development(5)(6) Hollywood 478,845 15.0 Sunset Las Palmas Studios—Development(5) Hollywood 617,581 19.4 Sunset LA —Development(7) Los Angeles 232,855 7.3 Element LA—Development West Los Angeles 500,000 15.7 Subtotal 1,849,097 58.0 % TOTAL LAND 3,187,261 100.0 % COMPANY’S SHARE OF TOTAL LAND 2,163,875
Page 34 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Repositioning, Redevelopment, Development and Held For Sale Properties(1) Estimated Square Feet(2) Occupied Square Feet Percent Occupied(3) Leased Square Feet Percent Leased(3) Annualized Base Rent(4) Annualized Base Rent Per Square Foot(4)Submarket REPOSITIONING(5) San Francisco Bay Area, California Rincon Center(6) San Francisco 36,905 — — % — — % $ — $ — Page Mill Center(7) Palo Alto 79,056 — — — — — — Metro Plaza(8) North San Jose 61,066 — — — — — — Subtotal 177,027 — — — — — — Los Angeles, California 10850 Pico(9) West Los Angeles 40,337 — — — — — — Subtotal 40,337 — — — — — — Total repositioning 217,364 — — — — — — REDEVELOPMENT Los Angeles, California One Westside West Los Angeles 584,000 — — 584,000 (10) 100.0 — — 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 AND HELD FOR SALE 1,020,489 — — % 584,000 57.2 % $ — $ — COMPANY’S SHARE OF TOTAL REPOSITIONING, REDEVELOPMENT, DEVELOPMENT AND HELD FOR SALE 812,404 — — % 438,000 53.9 % $ — $ — (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 footage 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 December 31, 2020, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.
Page 35 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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 December 31, 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 December 31, 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 6,444 square feet was take off-line in subsequent quarters. The total repositioning space was re-measured during fourth quarter 2020 to 36,905 square feet. (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. Repositioning, Redevelopment, Development and Held For Sale Properties(1) (continued)
Page 36 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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)). Under Construction and Future Development Projects Unaudited, in thousands, except square feet Estimated Construction Period Project Costs(1) Submarket Start Date(2) Estimated Completion Date(3) Estimated Stabilization Date(4) Estimated Square Feet(5) Total % Leased Project Costs as of 12/31/20 Total Estimated Project Costs Estimated Initial Stabilized Yield on Project Costs(6) UNDER CONSTRUCTION One Westside West Los Angeles Q4-2019 Q1-2022 Q2-2023 584,000 100.0 % (7) $ 289,617 (8) $500,000-$550,000 (8) 7.50%-8.00% (8) Total under construction 584,000 $ 289,617 FUTURE DEVELOPMENT PIPELINE Washington 1000 Denny Triangle TBD (9) TBD TBD 538,164 N/A $ 25,115 (9) $325,000-$350,000 6.75%-7.25% Bentall Centre—Development(10) Downtown Vancouver TBD TBD TBD 450,000 N/A N/A TBD TBD Element LA—Development West Los Angeles TBD TBD TBD 500,000 N/A N/A TBD TBD Sunset LA—Development(11) Los Angeles TBD TBD TBD 232,855 N/A $ 14,286 TBD TBD Sunset Bronson Studios Lot D—Development(12) Hollywood TBD TBD TBD 19,816 N/A N/A TBD TBD Sunset Gower Studios— Development(12)(13) Hollywood TBD TBD TBD 478,845 N/A $ 6,969 TBD TBD Sunset Las Palmas Studios—Development(12) Hollywood TBD TBD TBD 617,581 N/A $ 21,573 (14) TBD TBD Cloud10 North San Jose TBD TBD TBD 350,000 N/A $ 13,171 (15) TBD TBD Total future development 3,187,261 TOTAL 3,771,261
Page 37 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (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. (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) 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. (8) 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 pro rata share. Total estimated project costs, as well as project costs as of December 31, 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 December 31, 2020 are not pro rated 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. (9) Total estimated project costs for Washington 1000 include $86.0 million for management’s estimate of allocated land and acquisition costs. As of December 31, 2020 we have incurred $25.1 million of project costs with the remaining $60.9 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 fourth quarter 2021. The Company could commence construction upon delivery of the podium. (10) We own 20% of the ownership interest in the unconsolidated joint venture that owns Bentall Centre—Development. (11) We own 50% of the ownership interest in the unconsolidated joint venture that owns Sunset LA—Development. (12) 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. (13) Estimated square footage for Sunset Gower Studios—Development is net of 130,169 square feet of anticipated demolition in connection with the development. (14) Project costs as of December 31, 2020 for Sunset Las Palmas Studios—Development include $20.8 million for management’s estimate of allocated land and acquisition costs. (15) Project costs as of December 31, 2020 for Cloud10 include approximately $10.5 million for management’s estimate of allocated land and acquisition costs. Under Construction and Future Development Projects (continued)
Page 38 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Recently Completed, Under Construction and Planned Project Images Maxwell | Redevelopment Los Angeles (Arts District) 102,963 SF | Completed 1Q19 Multi-Tenant EPIC | Development Los Angeles (Hollywood) 301,127 SF | Completed 4Q19 Single Tenant (Netflix, Inc.) Harlow | Development Los Angeles (Hollywood) 106,125 SF | Completed 3Q20 Single or Multi-Tenant One Westside | Redevelopment Los Angeles (West Los Angeles) 584,000 SF | Completion 1Q22 Single Tenant (Google, Inc.) Cloud10 | Development Silicon Valley (North San Jose) 350,000 SF(1) | Completion TBD Single Tenant (Build-to-Suit) Sunset Gower Studios | Development Los Angeles (Hollywood) 478,845(1) SF | Completion TBD 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. Washington 1000 | Development Seattle (Denny Triangle) 538,164(1) SF | Completion TBD Single or Multi-Tenant Recently Completed Under Construction Planned Bentall Centre | Development Vancouver (Downtown) 450,000(1) SF | Completion TBD Single or Multi-Tenant
Page 39 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Office Tenant Industry Diversification(1) INDUSTRY DIVERSIFICATION Company’s Share Industry Square Feet(2)(3) Annualized Base Rent as Percent of Total Square Feet(2)(4) Annualized Base Rent as Percent of Total Technology 4,861,008 37.9 % 4,290,135 40.1 % Media and Entertainment 1,789,641 15.6 1,308,040 13.4 Business Services 1,343,008 (5) 9.3 1,073,228 (6) 9.2 Legal 707,089 7.2 645,855 8.2 Financial Services 1,163,792 8.3 824,816 7.7 Retail 1,256,072 (7) 6.5 952,442 (8) 6.0 Other 727,231 5.2 561,164 5.5 Real Estate 491,764 3.1 263,231 2.4 Healthcare 210,236 1.9 199,085 2.2 Insurance 247,377 1.6 192,579 1.7 Educational 161,567 1.2 156,612 1.5 Government 264,441 1.6 200,177 1.4 Advertising 60,075 0.6 55,656 0.7 TOTAL 13,283,301 100.0 % 10,723,020 100.0 % (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 190,707 square feet occupied by the Company. (4) Excludes 165,499 square feet occupied by the Company. (5) Includes 637,832 square feet occupied by co-working tenants (represents 3.9% of total annualized base rent). (6) Includes 445,759 square feet occupied by co-working tenants (represents 3.2% of the Company’s Share of total annualized base rent). (7) Includes 431,246 square feet of storefront retail (represents 2.3% of total annualized base rent). (8) Includes 380,108 square feet of storefront retail (represents 2.3% of the Company’s Share of total annualized base rent). TECHNOLOGY DIVERSIFICATION Company’s Share Sector Square Feet(2) Annualized Base Rent as Percent of Total Square Feet(2) Annualized Base Rent as Percent of Total Online services 1,125,231 29.9 % 1,019,735 31.3 % Software 1,331,589 25.7 1,269,659 27.6 Computer hardware and technology equipment 1,119,281 17.6 1,084,384 19.3 Business support services 715,082 14.9 501,026 12.0 Other 411,595 8.4 264,584 6.0 Biotechnology, healthcare and medical research 107,013 2.6 107,013 2.9 Telecommunications and networking 51,217 0.9 43,734 0.9 TOTAL 4,861,008 100.0 % 4,290,135 100.0 % MEDIA AND ENTERTAINMENT DIVERSIFICATION Company’s Share Sector Square Feet(2) Annualized Base Rent as Percent of Total Square Feet(2) Annualized Base Rent as Percent of Total Entertainment production and service 1,247,398 69.7 % 786,639 59.2 % Gaming 361,056 21.9 351,274 29.8 Advertising and marketing 122,960 6.2 122,960 8.6 Other 58,227 2.2 47,167 2.4 TOTAL 1,789,641 100.0 % 1,308,040 100.0 %
Page 40 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Fifteen Largest Office Tenants (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 December 31, 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 December 31, 2020. (3) Credit rating and market capitalization data provided by Bloomberg as of December 31, 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) 208,843 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 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 35 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. Company’s Share Tenant(1) Property Lease Expiration Total Occupied Square Feet Total Occupied Square Feet Percent of Rentable Square Feet Annualized Base Rent(2) Percent of Annualized Base Rent Credit Rating(3) Market Capitalization (in billions)(3)Moody’s S&P 1 Google, Inc. Various Various 640,726 (4) 622,117 4.9% $ 47,709,365 8.6% Aa2 AA+ $ 1,185.3 2 Netflix, Inc. Various 9/30/2031 722,305 (5) 368,376 2.9 23,350,905 4.2 Ba3 BB 238.9 3 Nutanix, Inc. Various 5/31/2024 439,406 (6) 439,406 3.5 17,964,505 3.2 6.4 4 Riot Games, Inc. Element LA 3/31/2030 284,037 (7) 284,037 2.2 17,343,691 3.1 5 Qualcomm Skyport Plaza 7/31/2022 376,817 376,817 3.0 14,505,947 2.6 A2 A- 172.3 6 Salesforce.com Rincon Center Various 265,394 (8) 265,394 2.1 14,140,695 2.5 A2 A 203.7 7 Amazon Various Various 700,917 (9) 448,425 3.5 13,546,786 2.4 A2 AA- 1,634.2 8 Square, Inc. 1455 Market(10) 9/27/2023 469,056 257,981 2.0 12,973,776 2.3 98.1 9 Dell EMC Corporation Various Various 311,795 (11) 311,795 2.5 12,198,893 2.2 10 Uber Technologies, Inc. 1455 Market(10) 2/28/2025 325,445 178,995 1.4 9,363,617 1.7 B2 B- 94.3 11 NFL Enterprises Various 12/31/2023 167,606 (12) 167,606 1.3 7,582,495 1.4 12 GitHub, Inc. Various 6/30/2025 92,450 (13) 92,450 0.7 6,554,532 1.2 13 Regus Various Various 150,081 (14) 150,081 1.2 6,537,247 1.2 4.8 14 Weil, Gotshal & Manges LLP Towers at Shore Center 8/31/2026 76,278 76,278 0.6 5,580,351 1.0 15 WeWork Companies Inc. Various Various 374,542 (15) 203,077 1.6 5,425,467 1.0 TOTAL 5,396,855 4,242,835 33.4% $ 214,778,272 38.6%
Page 41 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (6) Nutanix, Inc. expirations by square footage and property: (i) 199,445 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 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 has paid us 50% of any amounts received pursuant to the sublease, such that we began receiving an average of $340,000 per month of sublease cash rents starting June 2020, with annual growth thereafter. (9) Amazon expirations by square footage and property: (i) 139,824 square feet at Met Park North expiring on November 30, 2023 and (ii) 561,093 square feet at 1918 Eighth expiring on September 30, 2030. At 1918 Eighth, Amazon is expected to take possession of an additional 9,945 square feet during first quarter 2021. We own 55% of the ownership interest in the consolidated joint venture that owns 1918 Eighth. (10) We own 55% of the ownership interest in the consolidated joint venture that owns 1455 Market. (11) 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. (12) 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. (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) Regus expirations by square footage and property: (i) 26,661 square feet at 95 Jackson expired on December 31, 2020, (ii) 44,957 square feet at Gateway expiring on March 31, 2022, (iii) 20,059 square feet at 11601 Wilshire expiring on February 29, 2024, (iv) 27,369 square feet at Techmart expiring on April 30, 2025, (v) 9,739 square feet at Palo Alto Square expiring on April 30, 2026, and (vi) 21,296 square feet at 450 Alaskan expiring on October 31, 2030. (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. Fifteen Largest Office Tenants (continued)
Page 42 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Office Property Leasing Activity(1) Three Months Ended December 31, 2020 Year Ended December 31, 2020 Total gross leasing activity Rentable square feet(2) 279,392 800,336 Gross new leasing activity Rentable square feet 70,496 340,415 New cash rate(3) $70.74 $63.87 Gross renewal leasing activity Rentable square feet 208,896 459,921 Renewal cash rate(4) $48.09 $50.63 Total leases expired and terminated Contractual (scheduled) expiration 153,755 870,166 Early termination 12,117 118,228 Total 165,872 988,394 Net absorption Leased rentable square feet (95,376) (647,979) Cash rent growth(5) Expiring rate $46.57 $46.51 New/renewal rate(6) $48.75 $53.16 Change(5) 4.7 % 14.3 % Straight-line rent growth(7) Expiring rate $43.31 $43.13 New/renewal rate(6) $45.43 $52.41 Change(7) 4.9 % 21.5 % Weighted average lease terms New (in months) 72.1 69.6 Renewal (in months) 45.4 42.5 Blended 51.9 53.4 TENANT IMPROVEMENTS AND LEASING COMMISSIONS(8) Per Square Foot Three Months Ended December 31, 2020 Year Ended December 31, 2020 Total Annual Total Annual New leases $119.58 $19.89 $78.39 $13.52 Renewal leases $9.27 $2.45 $9.44 $2.66 Blended $35.96 $8.32 $37.08 $8.34 NET EFFECTIVE RENT(9) Per Square Foot Three Months Ended December 31, 2020 Year Ended December 31, 2020 Total Total New leases $46.18 $46.86 Renewal leases $40.75 $45.20 Blended $42.06 $45.87
Page 43 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (1) Represents 100% share of consolidated and unconsolidated joint ventures. (2) Includes square footage related to the Company’s management offices totaling 2,958 and 33,481 square feet for the three and twelve months ended December 31, 2020, respectively. Excludes 16,598 square feet of short-term temporary leases with no base rent, primarily utilized as swing spaces for tenants with pending move-in dates. (3) Excludes 1,661 and 6,819 square feet related to tenants paying percentage rent in lieu of base rent for the three and twelve months ended December 31, 2020, respectively. (4) Excludes 2,494 and 6,712 square feet related to tenants paying percentage rent in lieu of base rent for the three and twelve months ended December 31, 2020, respectively. (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 twelve months. Excludes tenants paying percentage rent in lieu of base rent. (6) The new rates being compared to expiring rates for the three and twelve months ended December 31, 2020 are calculated using the weighted average starting rates for 29,247 and 217,270 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 twelve 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 periods indicated. (9) Represents the weighted average initial annual cash rent, net of the annualized concessions (i.e free rent), tenant improvements and lease commissions. Office Property Leasing Activity(1) (continued)
Page 44 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Commenced Office Leases with Non-Recurring Upfront Abatements(1) (1) Consists of leases that commenced on or prior to December 31, 2020 with up-front free base rent resulting in a rent start date after the commencement of the three-month period ending December 31, 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 December 31, 2020. (4) 16,513 square feet commenced October 1, 2020 and 8,000 square feet commenced December 1, 2020. (5) Subsequent to the rent start date, monthly base rent is abated for the two-month period January 2021 through February 2021. (6) 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. Submarket Square Feet Lease Start Date Rent Start Date Starting Base Rents(2) Lease Expiration Date Vancouver, British Columbia Bentall Centre(3) Downtown Vancouver 7,500 7/1/2020 12/1/2020 $ 47.94 11/30/2030 Bentall Centre(3) Downtown Vancouver 1,667 10/1/2020 7/1/2021 $ 39.29 9/30/2025 Bentall Centre(3) Downtown Vancouver 950 12/1/2020 3/1/2021 $ 31.04 2/28/2026 Bentall Centre(3) Downtown Vancouver 24,513 (4) Various 4/1/2021 $ 41.26 3/31/2031 San Francisco Bay Area, California 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 Metro Center Foster City 6,561 9/1/2020 2/1/2021 $ 72.00 12/31/2023 Palo Alto Square Palo Alto 5,562 9/1/2020 12/1/2020 $ 115.20 8/31/2025 Towers at Shore Center Redwood Shores 2,160 10/1/2020 12/1/2020 $ 73.80 11/30/2025 Rincon Center San Francisco 34,779 10/8/2020 4/8/2021 $ 85.00 2/29/2028 625 Second San Francisco 6,041 11/1/2020 3/1/2021 $ 53.56 4/30/2027 Shorebreeze Redwood Shores 2,592 11/1/2020 12/1/2020 $ 65.40 12/31/2021 Gateway North San Jose 1,973 11/1/2020 12/1/2020 $ 48.00 11/30/2023 1740 Technology North San Jose 3,198 11/1/2020 1/1/2021 $ 41.76 5/31/2024 Towers at Shore Center Redwood Shores 7,049 12/1/2020 2/1/2021 $ 72.00 11/30/2025 Skyway Landing Redwood Shores 6,708 12/1/2020 3/1/2021 $ 57.00 11/30/2024 Concourse North San Jose 14,203 12/1/2020 3/1/2021 $ 49.20 2/28/2026 Metro Plaza North San Jose 5,323 12/1/2020 1/1/2021 $ 48.60 1/31/2026 Gateway North San Jose 7,179 12/2/2020 12/2/2020 (5) $ 51.00 12/31/2030 Metro Center Foster City 2,250 12/12/2020 12/12/2020 (5) $ 72.00 2/28/2022 Los Angeles, California EPIC(6) Hollywood 60,014 10/1/2019 3/30/2021 $ 68.40 9/30/2031
Page 45 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Uncommenced Office Leases—Next Eight Quarters(1)(2) Company’s Share Q1 2021 Q2 2021 Q1 2021 Q2 2021 SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) Vancouver, British Columbia Downtown Vancouver(4) 3,928 $ 30.91 — $ — 786 $ 30.91 — $ — Subtotal 3,928 30.91 — — 786 30.91 — — Greater Seattle, Washington Denny Triangle 9,945 46.00 — — 5,469 46.00 — — Pioneer Square 3,795 40.77 — — 3,795 40.77 — — Subtotal 13,740 44.56 — — 9,264 43.86 — — San Francisco Bay Area, California Foster City 2,250 72.00 — — 2,250 72.00 — — Palo Alto 55,805 84.60 — — 55,805 84.60 — — North San Jose 1,983 50.40 — — 1,983 50.40 — — Subtotal 60,038 83.00 — — 60,038 83.00 — — Los Angeles, California West Los Angeles 1,848 63.60 13,834 64.75 1,848 63.60 13,834 64.75 Subtotal 1,848 63.60 13,834 64.75 1,848 63.60 13,834 64.75 TOTAL UNCOMMENCED 79,554 $ 73.34 13,834 $ 64.75 71,936 $ 76.89 13,834 $ 64.75 (1) Consists of uncommenced leases, defined as new leases with respect to vacant space executed on or prior to December 31, 2020, but with commencement dates after December 31, 2020 and within the next eight quarters. This table omits submarkets and quarters without any activity. (2) There are no uncommenced leases commencing in third quarter 2021, fourth quarter 2021, third quarter 2022, or fourth 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 December 31, 2020.
Page 46 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Uncommenced Office Leases—Next Eight Quarters(1)(2) (continued) Company’s Share Q1 2022 Q2 2022 Q1 2022 Q2 2022 SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) Vancouver, British Columbia Downtown Vancouver(4) 5,013 $ 48.72 — $ — 1,003 $ 48.72 — $ — Subtotal 5,013 48.72 — — 1,003 48.72 — — 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 $ 61.90 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 47 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Backfilled Office Leases—Next Eight Quarters(1)(2) Company’s Share Q1 2021 Q2 2021 Q1 2021 Q2 2021 SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) Vancouver, British Columbia Downtown Vancouver(4) 5,268 $ 35.10 — $ — 1,054 $ 35.10 — $ — Subtotal 5,268 35.10 — — 1,054 35.10 — — San Francisco Bay Area, California San Francisco — — 1,944 112.00 — — 1,069 112.00 Subtotal — — 1,944 112.00 — — 1,069 112.00 TOTAL BACKFILLED 5,268 35.10 1,944 112.00 1,054 35.10 1,069 112.00 TOTAL UNCOMMENCED AND BACKFILLED 84,822 $ 70.96 15,778 $ 70.57 72,990 $ 76.29 14,903 $ 68.14 (1) Consists of backfilled leases, defined as new leases with respect to occupied space executed on or prior to December 31, 2020, but with commencement dates after December 31, 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, third quarter 2022, or fourth 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 December 31, 2020.
Page 48 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth 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 SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per SF(3) SF Starting Rent per 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 5,334 $ — 589,013 $ 61.90 15,017 $ 37.18 1,067 $ — 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 49 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Expiring Office Leases—Next Eight Quarters(1) Company’s Share Q1 2021(2) Q2 2021 Q3 2021 Q4 2021 Q1 2021(3) Q2 2021 Q3 2021 Q4 2021 Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Vancouver, British Columbia Downtown Vancouver(6) 8,456 $ 28.43 20,494 $ 25.08 40,327 $ 12.38 88,243 $ 24.46 (7) 1,691 $28.43 4,099 $25.08 8,065 $12.38 17,649 $ 24.46 Subtotal 8,456 28.43 20,494 25.08 40,327 12.38 88,243 24.46 1,691 28.43 4,099 25.08 8,065 12.38 17,649 24.46 Greater Seattle, Washington Denny Triangle 656 33.18 1,194 — (8) — — 2,958 — (8) 656 33.18 657 — (8) — — 1,627 — (8) Lynnwood 5,603 21.22 — — — — 9,570 20.00 5,603 21.22 — — — — 9,570 20.00 Pioneer Square 118,372 28.05 (9) 3,693 45.37 32,641 38.68 192,634 24.36 (10) 118,372 28.05 3,693 45.37 32,641 38.68 192,634 24.36 Subtotal 124,631 27.77 4,887 34.28 32,641 38.68 205,162 23.80 124,631 27.77 4,350 38.52 32,641 38.68 203,831 23.96 San Francisco Bay Area, California Foster City 4,988 75.82 4,137 — (8) 42,114 48.31 17,045 70.65 4,988 75.82 4,137 — (8) 42,114 48.31 17,045 70.65 Palo Alto 20,448 18.15 42,899 76.71 24,264 59.93 226,048 74.47 (11) 20,448 18.15 42,899 76.71 24,264 59.93 226,048 74.47 Redwood Shores 7,957 45.81 72,615 60.67 (12) 94,278 52.10 (13) 26,887 70.63 7,957 45.81 72,615 60.67 94,278 52.10 26,887 70.63 San Francisco 7,327 37.38 4,689 47.73 57,056 29.97 (14) 1,448 199.01 7,079 34.40 2,579 47.73 55,258 30.95 796 199.01 North San Jose 46,722 40.81 63,146 34.31 (15) 77,971 39.64 (16) 57,927 39.29 (17) 46,722 40.81 63,146 34.31 77,971 39.64 57,927 39.29 Santa Clara 8,035 53.25 12,072 45.03 15,497 55.16 12,711 53.97 8,035 53.25 12,072 45.03 15,497 55.16 12,711 53.97 Subtotal 95,477 38.98 199,558 53.27 311,180 45.17 342,066 67.78 95,229 38.77 197,448 53.33 309,382 45.43 341,414 67.53 Los Angeles, California Hollywood 13,518 52.08 — — — — — — 13,518 52.08 — — — — — — West Los Angeles 15,950 48.51 1,899 — (8) 6,302 49.08 12,418 52.09 13,266 49.14 1,424 — (8) 6,302 49.08 12,418 52.09 Subtotal 29,468 50.15 1,899 — 6,302 49.08 12,418 52.09 26,784 50.62 1,424 — 6,302 49.08 12,418 52.09 Total 258,032 $ 34.50 226,838 $ 49.87 390,450 $ 41.30 647,889 $ 47.66 248,335 $34.46 207,321 $52.09 356,391 $44.13 575,312 $ 50.44 Expirations as % of In- Service Portfolio 1.8% 1.6% 2.7% 4.5% 2.1% 1.7% 3.0% 4.8%
Page 50 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Expiring Office Leases—Next Eight Quarters(1) (continued) (1) This does not reflect 97,092 square feet, of which 76,956 square feet represents the Company’s Share, that expired on December 31, 2020. This table omits submarkets without any expirations over the next eight quarters. (2) First quarter 2021 expiring square footage representing 100% share of joint ventures does not include 27,691 square feet of month-to-month leases. (3) First quarter 2021 expiring square footage representing the Company’s Share of joint ventures does not include 16,587 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. Company’s Share Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Expiring SF(4) Rent/ SF(5) Vancouver, British Columbia Downtown Vancouver(6) 27,313 $ 33.81 64,071 $ 28.35 (18) 58,212 $ 27.05 (19) 64,184 $ 27.89 (20) 5,463 $33.81 12,814 $28.35 11,642 $27.05 12,837 $ 27.89 Subtotal 27,313 33.81 64,071 28.35 58,212 27.05 64,184 27.89 5,463 33.81 12,814 28.35 11,642 27.05 12,837 27.89 Greater Seattle, Washington Denny Triangle — — — — — — 51,909 31.41 (21) — — — — — — 28,550 31.41 Lynnwood 2,842 22.81 15,960 22.39 — — — — 2,842 22.81 15,960 22.39 — — — — Pioneer Square 6,136 47.53 8,063 42.79 — — 924 42.08 6,136 47.53 8,063 42.79 — — 924 42.08 Subtotal 8,978 39.71 24,023 29.24 — — 52,833 31.60 8,978 39.71 24,023 29.24 — — 29,474 31.74 San Francisco Bay Area, California Foster City 23,565 52.85 55,259 76.56 (22) 3,534 76.71 42,542 71.96 23,565 52.85 55,259 76.56 3,534 76.71 42,542 71.96 Palo Alto 18,631 94.74 36,803 75.65 6,289 102.89 78,519 86.05 (23) 18,631 94.74 36,803 75.65 6,289 102.89 78,519 86.05 Redwood Shores 23,496 67.40 31,844 69.79 51,712 69.02 (24) 94,641 64.25 (25) 23,496 67.40 31,844 69.79 51,712 69.02 94,641 64.25 San Francisco 567 242.84 2,222 42.09 20,104 66.09 2,982 48.92 312 242.84 2,222 42.09 18,411 66.75 1,640 48.92 North San Jose 100,699 44.30 (26) 80,487 44.56 (27) 438,283 41.36 (28) 63,218 45.33 (29) 100,699 44.30 80,487 44.56 438,283 41.36 63,218 45.33 Santa Clara 24,294 52.20 2,954 52.86 22,920 56.01 8,423 54.67 24,294 52.20 2,954 52.86 22,920 56.01 8,423 54.67 Subtotal 191,252 54.70 209,569 62.38 542,842 46.47 290,325 66.72 190,997 54.45 209,569 62.38 541,149 46.43 288,983 66.80 Los Angeles, California Hollywood — — 3,273 56.05 — — 10,429 63.14 — — 3,273 56.05 — — 10,429 63.14 West Los Angeles 4,052 60.98 5,901 64.08 47,900 47.12 29,718 62.48 4,052 60.98 5,901 64.08 37,147 47.70 29,718 62.48 Subtotal 4,052 60.98 9,174 61.21 47,900 47.12 40,147 62.65 4,052 60.98 9,174 61.21 37,147 47.70 40,147 62.65 Total 231,595 $ 51.77 306,837 $ 52.65 648,954 $ 44.78 447,489 $ 56.64 209,489 $53.41 255,580 $57.52 589,938 $46.13 371,441 $ 62.23 Expirations as % of In- Service Portfolio 1.6% 2.1% 4.5% 3.1% 1.8% 2.1% 5.0% 3.1%
Page 51 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 (6) Expiring rental rates have been converted from CAD to USD using the foreign currency exchange rate as of December 31, 2020. (7) 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) Mackorman Management Ltd. for 10,517 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) Total expiring square footage consists of: (i) Dell EMC Corporation at 505 First for 185,292 square feet and (ii) Armoire, Inc. at 505 First for 7,342 square feet. (11) Total expiring square footage consists of: (i) Google, Inc. at 3400 Hillview for 207,857 square feet, (ii) Arnold & Porter Kaye Scholer, LLP at Page Mill Hill for 13,065 square feet, and (iii) Pilot AI Labs, Inc. at Palo Alto Square for 5,126 square feet. (12) 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) VMWare, Inc. at Towers at Shore Center for 6,368 square feet. (13) 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 LLC at Skyway Landing for 8,820 square feet. (14) 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. (15) 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. (16) 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. (17) 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. (18) 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. (19) 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. (20) Top three expiring tenants at Bentall Centre by square footage: (i) Omicron Consulting for 15,500 square feet, (ii) Robert Half, Inc. for 10,301 square feet, and (ii) Shank Management Ltd. for 9,866 square feet. (21) Total expiring square footage consists of KPMG,LLP at 1918 Eighth for 51,909 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) Top three expiring tenants by square footage: (i) Stanford University at Page Mill Center for 43,215 square feet, (ii) Frank Rimmerman & Co. LLC at Page Mill Hill for 24,968 square feet, and (iii) K&L Gates LLP at Clocktower Square for 9,234 square feet. (24) Top three expiring tenants by square footage: (i) McKool Smith a Professional Corporation 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) Auris Health, Inc. at Skyway Landing for 37,801 square feet, (ii) Auris Health, Inc. at 333 Twin Dolphin for 27,416 square feet, and (iii) Project Worldwide, Inc. at Skyway Landing for 19,467 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. (29) Top three expiring tenants by square footage: (i) Ooyala, Inc. at Gateway for 18,152 square feet, (ii) The Prudential Insurance Co. at Concourse for 11,827 square feet, and (iii) Adara Networks, Inc. at Concourse for 7,647 square feet. Expiring Office Leases—Next Eight Quarters(1) (continued)
Page 52 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Expiring Office Leases—Annual (1) Total expiring square footage does not include 27,691 square feet of month-to-month leases. (2) Total expiring square footage does not include 16,587 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 December 31, 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 December 31, 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 December 31, 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 December 31, 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 December 31, 2020, divided by (ii) square footage under uncommenced leases as of December 31, 2020. (8) Included as part of the Company’s share of total expiring square footage is 118,935 square feet of existing leases that have been amended or signed during 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 $52.39. (9) Included as part of the Company’s share of total expiring square footage is 102,544 square feet of existing leases that have been amended or signed during 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 $60.97. Company’s Share Year of Lease Expiration Number of Leases Expiring Square Footage of Expiring Leases(1) Square Footage of Expiring Leases(2) Percent of Office Portfolio Square Feet Annualized Base Rent(3) Percentage of Office Portfolio Annualized Base Rent Annualized Base Rent Per Leased Square Foot(4) Annualized Base Rent at Expiration Annualized Base Rent Per Lease Square Foot at Expiration(5) Vacant 1,385,737 1,290,600 10.2 % 2020 17 90,936 75,725 0.6 $ 3,976,555 0.7 % $ 52.51 $ 3,976,552 $ 52.51 2021 180 1,451,755 1,320,045 10.4 63,243,523 10.7 47.91 64,102,897 48.56 2022 188 1,634,875 1,426,448 11.2 72,244,934 12.2 50.65 76,215,872 53.43 2023 126 1,856,568 1,437,580 11.3 66,674,198 11.4 46.38 72,220,786 50.24 2024 123 1,804,468 1,607,366 12.7 82,322,671 13.9 51.22 91,600,964 56.99 2025 82 1,622,973 1,311,465 10.3 75,643,914 12.8 57.68 86,032,021 65.60 2026 43 597,351 508,136 4.0 29,553,544 5.0 58.16 34,299,588 67.50 2027 28 612,778 524,702 4.1 30,036,504 5.1 57.24 35,695,866 68.03 2028 22 704,768 630,748 5.0 40,966,681 6.9 64.95 50,119,796 79.46 2029 16 311,382 217,548 1.7 16,247,673 2.7 74.69 19,897,605 91.46 Thereafter 30 2,567,756 1,646,671 13.0 76,522,538 12.9 46.47 106,069,467 64.41 Building management use(6) 35 190,707 165,499 1.3 — — — — — Signed leases not commenced(7) 14 691,005 533,377 4.2 33,910,362 5.7 63.58 48,935,826 91.75 TOTAL/WEIGHTED AVERAGE 904 15,523,059 12,695,910 100.0 % $ 591,343,097 100.0 % $ 51.85 (8) $ 689,167,240 $ 60.43 (9)
Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Definitions and Reconciliations
Page 54 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth 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, Hollywood Media Portfolio and 1918 Eighth joint ventures is included.
Page 55 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 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 outstanding (including unvested restricted shares), OP units outstanding and an estimate for our dilutive Outperformance Programs (“OPPs,” or individually, “OPP”) and Performance Stock Units (“PSU”), including stock grants under our 2018 OPP, 2019 OPP and 2020 PSU Plans (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 Plans. 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. Definitions (continued)
Page 56 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Reconciliation of Net (Loss) Income to Net Operating Income Unaudited, in thousands Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net (loss) income $ (3,168) $ 16,963 $ 16,430 $ 55,846 Adjustments: (Income) loss from unconsolidated real estate entity (667) 402 (736) 747 Fee income (1,074) (528) (2,815) (1,459) Interest expense 29,638 28,353 116,477 105,845 Interest income (960) (1,010) (4,089) (4,044) Transaction-related expenses — 208 440 667 Unrealized loss on non-real estate investment 128 — 2,463 — Gain on sale of real estate — — — (47,100) Impairment loss — — — 52,201 Other expense (income) 1,058 (336) (548) (78) General and administrative 23,939 17,848 77,882 71,947 Depreciation and amortization 77,351 74,196 299,682 282,088 Net Operating Income $ 126,245 $ 136,096 $ 505,186 $ 516,660 Net Operating Income Breakdown Same-Store Office cash revenues $ 166,219 $ 161,703 $ 600,125 $ 591,550 Straight-line rent (1,375) 12,506 15,607 37,244 Amortization of above-market and below-market leases, net 1,928 2,765 8,842 10,891 Amortization of lease incentive costs (439) (470) (1,785) (1,696) Same-Store Office revenues 166,333 176,504 622,789 637,989 Same-Store Studios cash revenues 19,539 22,923 68,150 83,400 Straight-line rent (154) 190 933 1,084 Amortization of above-market and below-market leases, net 6 — — — Amortization of lease incentive costs (16) (9) (37) (37) Same-Store Studio revenues 19,375 23,104 69,046 84,447 Same-Store property revenues 185,708 199,608 691,835 722,436 Same-Store Office cash expenses 58,687 58,469 213,657 207,359 Straight-line rent 366 366 1,462 1,463 Non-cash portion of interest expense 4 — 5 — Amortization of above-market and below-market ground leases, net 586 586 2,344 2,344 Same-Store Office expenses 59,643 59,421 217,468 211,166 Same-Store Studio cash expenses 9,916 13,225 37,521 45,313 Non-cash portion of interest expense 29 — 59 — Same-Store Studio expenses 9,945 13,225 37,580 45,313 Same-Store property expenses 69,588 72,646 255,048 256,479 Same-Store net operating income 116,120 126,962 436,787 465,957 Non-Same-Store net operating income 10,125 9,134 68,399 50,703 Net Operating Income $ 126,245 $ 136,096 $ 505,186 $ 516,660
Page 57 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Reconciliation of Net (Loss) Income to Company’s Share of Net Operating Income Unaudited, in thousands Three Months Ended December 31, Year Ended December 31, 2020 2019 2020 2019 Net (loss) income $ (3,168) $ 16,963 $ 16,430 $ 55,846 Adjustments: (Income) loss from unconsolidated real estate entity (667) 402 (736) 747 Fee income (1,074) (528) (2,815) (1,459) Interest expense 29,638 28,353 116,477 105,845 Interest income (960) (1,010) (4,089) (4,044) Transaction-related expenses — 208 440 667 Unrealized loss on non-real estate investment 128 — 2,463 — Gain on sale of real estate — — — (47,100) Impairment loss — — — 52,201 Other expense (income) 1,058 (336) (548) (78) General and administrative 23,939 17,848 77,882 71,947 Depreciation and amortization 77,351 74,196 299,682 282,088 Company's Share of NOI from Unconsolidated Real Estate Entity 3,174 2,645 11,089 6,189 Net Operating Income Partner's Share (16,703) (7,919) (44,966) (30,557) Net Operating Income Company's Share $ 112,716 $ 130,822 $ 471,309 $ 492,292 Net Operating Income Breakdown Same-Store Office cash revenues $ 142,511 $ 141,989 $ 516,519 $ 509,672 Straight-line rent (2,860) 5,622 7,541 24,504 Amortization of above-market and below-market leases, net 2,217 2,964 8,371 10,380 Amortization of lease incentive costs (414) (444) (1,685) (1,591) Same-Store Office revenues Company’s Share 141,454 150,131 530,746 542,965 Same-Store property revenues Company’s Share 141,454 150,131 530,746 542,965 Same-Store Office cash expenses 49,383 50,614 183,094 177,895 Straight-line rent 249 249 995 995 Amortization of above-market and below-market ground leases, net 576 576 2,302 2,302 Same-Store Office expenses Company’s Share 50,208 51,439 186,391 181,192 Same-Store property expenses Company’s Share 50,208 51,439 186,391 181,192 Same-Store net operating income Company’s Share 91,246 98,692 344,355 361,773 Non-Same-Store net operating income Company’s Share 21,470 32,130 126,954 130,519 Net Operating Income Company’s Share $ 112,716 $ 130,822 $ 471,309 $ 492,292
Page 58 of 58 Hudson Pacific Properties, Inc. Supplemental Information | Fourth Quarter 2020 Three Months Ended Quarter To Date December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Net (loss) income $ (3,168) $ (1,362) $ 7,011 $ 13,949 $ 16,963 Interest income—Consolidated (960) (1,056) (1,048) (1,025) (1,010) Interest expense—Consolidated 29,638 32,492 27,930 26,417 28,353 Depreciation and amortization—Consolidated 77,351 75,052 73,516 73,763 74,196 EBITDA 102,861 105,126 107,409 113,104 118,502 Unconsolidated real estate entity depreciation and amortization 1,424 1,445 1,355 1,381 1,650 Unconsolidated real estate entity interest expense 605 630 630 930 949 EBITDAre 104,890 107,201 109,394 115,415 121,101 Unrealized loss (gain) on non-real estate investment 128 (513) 2,267 581 — Other expense (income) 1,058 (576) (716) (314) (366) Transaction-related expenses — 181 157 102 208 Non-cash compensation expense 8,314 4,791 4,723 4,895 4,088 Straight-line rent, net 1,191 (4,681) (12,062) (13,344) (12,992) Non-cash amortization of above-market and below-market leases, net (2,178) (2,449) (2,464) (2,544) (2,917) Non-cash amortization of above-market and below-market ground leases, net 588 588 588 577 615 Amortization of lease incentive costs 477 466 499 472 504 Adjusted EBITDAre 114,468 105,008 102,386 105,840 110,241 Studio cash NOI (9,623) (6,319) (5,686) (9,001) (9,698) Office property adjusted EBITDAre 104,845 98,689 96,700 96,839 100,543 x Annualization factor 4 4 4 4 4 Annualized office property adjusted EBITDAre 419,380 394,756 386,800 387,356 402,172 Trailing 12-mo studio cash NOI 30,629 30,704 34,943 37,017 38,087 Adjusted EBITDAre (Annualized) $ 450,009 $ 425,460 $ 421,743 $ 424,373 $ 440,259 Total Consolidated unsecured and secured debt 3,432,276 3,087,168 2,998,350 3,260,352 2,845,459 Less: Consolidated cash and cash equivalents (113,686) (365,294) (45,052) (392,136) (46,224) Consolidated debt, net $ 3,318,590 $ 2,721,874 $ 2,953,298 $ 2,868,216 $ 2,799,235 Adjusted EBITDAre (Annualized) / Consolidated debt, net(1) 7.4x 6.4x 7.0x 6.8x 6.4x Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized) Unaudited, in thousands (1) Consolidated debt, net as of December 31, 2020 includes the $314.3 million mortgage loan secured by the 1918 Eighth office property, which was acquired on December 18, 2020. Excluding this mortgage loan, Adjusted EBITDAre (Annualized) to Consolidated debt, net for the three months ended December 31, 2020 is 6.7x.
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