Hudson Pacific Properties, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

Attached files

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EX-99.1 - EXHIBIT 99.1 - Hudson Pacific Properties, Inc.	q3-2017ex991.htm
8-K - 8-K - Hudson Pacific Properties, Inc.	q3-20178xk.htm

HUDSON PACIFIC PROPERTIES, INC.

THIRD QUARTER 2017

Supplemental Operating and Financial Information

This Supplemental Operating and Financial Data 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: adverse economic and real estate developments in Northern and Southern California and the Pacific Northwest; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; and the consequences of any possible future terrorist attacks. These factors are not exhaustive. For a discussion of important risks related to Hudson Pacific Properties, Inc.’s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Risk Factors” in Hudson Pacific Properties, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016 filed with the Securities and Exchange Commission on February 21, 2017 and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. 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.

Third Quarter 2017 Supplemental Operating and Financial Information

TABLE OF CONTENTS



	Page
COMPANY BACKGROUND, RESEARCH COVERAGE AND CORPORATE DATA	3

CONSOLIDATED FINANCIAL RESULTS	6

Consolidated Balance Sheets	7
Consolidated Statements of Operations	8
Funds from Operations	9
Adjusted Funds from Operations	10
Debt Summary	11

PORTFOLIO DATA	13

In-Service Office Portfolio by Property	14
In-Service Office Portfolio Summary	16
Redevelopment, Development and Held For Sale Office Summary	17
Land Properties Summary	18
Media & Entertainment Portfolio Summary	19
Current Value Creation Development Projects	20
Same-Store Analysis	22
Reconciliation of GAAP Net Income to Net Operating Income	24
Net Operating Income Detail	25
Office Portfolio Leasing Activity	26
Office Portfolio Commenced Leases with Non-Recurring, Up-Front Abatements	27
Quarterly Uncommenced / Backfill—Next Eight Quarters	28
Quarterly Office Lease Expirations—Next Eight Quarters	30
Office Lease Expirations—Annual	31
Fifteen Largest Office Tenants	32
Office Portfolio Diversification	33

DEFINITIONS	34

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

COMPANY BACKGROUND



CORPORATE 11601 Wilshire Boulevard, Ninth Floor, Los Angeles, California 90025 (310) 445-5700 www.hudsonpacificproperties.com
BOARD OF DIRECTORS

Victor J. Coleman		Theodore R. Antenucci	Richard B. Fried
Chairman of the Board, Chief Executive Officer and President, Hudson Pacific Properties, Inc.		President and Chief Executive Officer, Catellus Development Corporation	Managing Member, Farallon Capital Management, L.L.C.

Jonathan M. Glaser		Robert L. Harris II	Mark D. Linehan
Managing Member, JMG Capital Management LLC		Executive Chairman (retired), Acacia Research Corporation	President and Chief Executive Officer, Wynmark Company

Robert M. Moran, Jr.		Michael Nash	Barry A. Porter
Co-founder and Co-owner, FJM Investments LLC		Senior Managing Director, Blackstone Group, L.P., Chief Investment Officer, Blackstone Real Estate Debt Strategies	Managing General Partner, Clarity Partners L.P.

		Andrea Wong
		President (retired), International Production, Sony Pictures Television

EXECUTIVE AND SENIOR MANAGEMENT

Victor J. Coleman		Mark T. Lammas	Christopher Barton
Chief Executive Officer and President		Chief Operating Officer, Chief Financial Officer and Treasurer	EVP, Development and Capital Investments

Alexander Vouvalides		Dale Shimoda	Kay L. Tidwell
Chief Investment Officer		EVP, Finance	EVP, General Counsel and Secretary

Arthur X. Suazo		Harout Diramerian	Steven M. Jaffe
EVP, Leasing		Chief Accounting Officer	Chief Risk Officer

Joshua Hatfield		Drew Gordon	Gary Hansel
EVP, Operations		SVP, Northern California	SVP, Southern California

Bill Humphrey		Derric Dubourdieu	Andy Wattula
SVP, Sunset Studios		SVP, Leasing	SVP, Pacific Northwest

		Elva Hernandez
		VP, Controller
INVESTOR RELATIONS
	Laura Campbell VP, Head of Investor Relations lcampbell@hudsonppi.com

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information



RESEARCH COVERAGE

EQUITY RESEARCH COVERAGE

James Feldman	Barry Oxford	Alexander Goldfarb
Bank of America Merrill Lynch	D.A. Davidson	Sandler O’Neill + Partners
(646) 855-5808	(212) 240-9871	(212) 466-7937

Ross Smotrich	Craig Mailman	Nick Yulico
Barclays Capital	KeyBanc Capital Markets	UBS Investment Bank
(212) 526-2306	(917) 368-2316	(212) 713-3402

Tom Catherwood	Richard Anderson	Blaine Heck
BTIG	Mizuho Securities	Wells Fargo Securities
(212) 738-6140	(212) 205-8445	(443) 263-6516

David Rodgers	Andrew Rosivach	Vikram Malhotra
Robert W. Baird & Company	Goldman Sachs	Morgan Stanley
(216) 737-7341	(212) 902-2796	(212) 761-7567

RATING AGENCIES

Stephen Boyd	Alice Chung	Fernanda Hernandez
Fitch Ratings	Moody’s Investor Service	Standard & Poor’s
(212) 908-9153	(212) 553-2949	(212) 438-1347

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

CORPORATE DATA

(Unaudited, in thousands, except number of properties, square feet and per share data)

Hudson Pacific Properties, Inc. (NYSE: HPP) (also referred to herein as the “Company,” “we,” “us,” or “our”) is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. This Supplemental Operating and Financial Data supplements the information provided in our reports filed with the Securities and Exchange Commission. We maintain a Website at www.hudsonpacificproperties.com.



	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Number of office properties owned	53			52			52			54			52
Office properties square feet⁽¹⁾	13,914,418			13,903,408			13,887,405			14,084,405			13,714,851
Stabilized office properties leased rate as of end of period⁽²⁾	95.9		%	95.6		%	96.4		%	96.4		%	96.5		%
In-Service office properties leased rate as of end of period⁽³⁾	91.5		%	90.8		%	91.2		%	91.2		%	90.7		%
Number of Media & Entertainment properties owned	3			3			2			2			2
Same-Store Media & Entertainment square feet⁽¹⁾	873,002			879,652			879,652			879,652			879,652
Same-Store Media & Entertainment leased rate as of end of period⁽⁴⁾	90.6		%	89.9		%	90.3		%	89.1		%	87.1		%
Non-Same-Store Media & Entertainment square feet⁽¹⁾	376,925			376,925			—			—			—
Non-Same-Store Media & Entertainment leased rate as of end of period⁽⁵⁾	75.7		%	76.3		%	—			—			—
Number of land assets owned	8			8			6			7			8
Land assets estimated square feet⁽⁶⁾	3,045,687			3,045,687			2,539,562			2,539,562			2,638,875
Market capitalization:
Total debt⁽⁷⁾	$	2,655,946		$	2,616,568		$	2,407,196		$	2,707,839		$	2,427,440
Series A preferred units	$	10,177		$	10,177		$	10,177		$	10,177		$	10,177
Common equity capitalization⁽⁸⁾	$	5,286,696		$	5,391,595		$	5,466,098		$	5,149,111		$	4,861,070
Total market capitalization	$	7,952,819		$	8,018,340		$	7,883,471		$	7,867,127		$	7,298,687
Debt/total market capitalization	33.4		%	32.6		%	30.5		%	34.4		%	33.3		%
Series A preferred units & debt/total market capitalization	33.5		%	32.8		%	30.7		%	34.5		%	33.4		%
Common stock data (NYSE:HPP):
Range of closing prices⁽⁹⁾	$ 31.73 - 34.42			$ 32.68 - 35.79			$ 33.75 - 36.65			$ 31.99 - 35.27			$ 29.03 - 34.33
Closing price at quarter end	$	33.53		$	34.19		$	34.64		$	34.78		$	32.87
Weighted average fully diluted common stock/units outstanding⁽¹⁰⁾	156,663			156,665			150,335			146,955			146,793
Shares of common stock/units outstanding at end of period⁽¹¹⁾	157,671			157,695			157,797			148,048			147,888

__________________________________

(1)

Square footage for properties 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. Excludes 6,650-square-foot restaurant space that was taken off-line for redevelopment during the three months ended September 30, 2017.


(2)	Stabilized office properties leased rate excludes the lease-up properties, redevelopment, development, properties held for sale, and land properties described on pages 15, 17 and 18.


(3)	In-service office properties leased rate includes the stabilized office properties and lease-up properties described on pages 14 and 15.


(4)	Percent occupied for Media and Entertainment properties is the average percent leased for the 12 months ended as of the quarter indicated.


(5)	Percent occupied for Non-Same-Store Media and Entertainment properties is the average percent leased for the period commencing as of May 1, 2017 and ending as of September 30, 2017.


(6)	Square footage for land assets represents management’s estimate of developable square feet, the majority of which remains subject to receipt of entitlement approvals that have not yet been obtained.


(7)	Total debt excludes deferred financing costs. The full amount of debt related to the Pinnacle I & II joint venture and Hill7 joint venture is included.


(8)	Common equity capitalization represents the shares of common stock (including unvested restricted shares), OP units outstanding and dilutive shares multiplied by the closing price of our stock at the end of the period.


(9)	For the quarter indicated.

(10)

For the quarter indicated, diluted shares represent ownership in our Company through shares of common stock, OP units and other convertible or exchangeable instruments. The weighted average fully diluted common stock/units outstanding for the three-month periods ending September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016 includes an estimate for dilution impact of stock grants to our executives under our 2014, 2015, 2016 and 2017 outperformance programs and performance-based awards under our special one-time award grants based on the projected award potential of such programs as of end of such periods, as calculated in accordance with the Accounting Standards Codification 260 Earnings Per Share (the “Dilutive 2014/2015/2016/2017 OPP stock grants and one-time retention award grants”).


(11)	This amount represents fully diluted common stock and OP units (including unvested restricted stocks) as of the end of the quarter indicated. The shares of common stock/units outstanding include the estimated Dilutive 2014/2015/2016/2017 OPP stock grants and one-time retention award grants.

CONSOLIDATED FINANCIAL RESULTS

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

Consolidated Balance Sheets (Unaudited, in thousands, except share data)

	September 30, 2017		December 31, 2016
ASSETS
Investment in real estate, net	$	6,054,757	$	5,712,112
Cash and cash equivalents	87,723		83,015
Restricted cash	25,784		25,177
Accounts receivable, net	5,014		6,833
Straight-line rent receivables, net	97,184		82,109
Deferred leasing costs and lease intangible assets, net	257,831		294,209
Prepaid expenses and other assets, net	57,360		79,058
Assets associated with real estate held for sale	321,437		396,485
TOTAL ASSETS	$	6,907,090	$	6,678,998

LIABILITIES AND EQUITY
Notes payable, net	$	2,424,358	$	2,473,323
Accounts payable and accrued liabilities	162,938		116,973
Lease intangible liabilities, net	55,335		73,569
Security deposits and prepaid rent	66,499		70,468
Derivative liabilities	819		1,303
Liabilities associated with real estate held for sale	224,032		230,435
TOTAL LIABILITIES	2,933,981		2,966,071

6.25% Series A cumulative redeemable preferred units of the operating partnership	10,177		10,177

EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Common stock, $0.01 par value, 490,000,000 authorized, 155,302,800 shares and 136,492,235 shares outstanding at September 30, 2017 and December 31, 2016, respectively	1,553		1,364
Additional paid-in capital	3,619,940		3,109,394
Accumulated other comprehensive income	6,465		9,496
Accumulated income (deficit)	18,911		(16,971		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	3,646,869		3,103,283
Non-controlling interest—members in consolidated entities	302,111		304,608
Non-controlling interest—units in the operating partnership	13,952		294,859
TOTAL EQUITY	3,962,932		3,702,750
TOTAL LIABILITIES AND EQUITY	$	6,907,090	$	6,678,998

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

Consolidated Statements of Operations (Unaudited, in thousands, except share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
REVENUES
Office
Rental	$	139,157		$	123,919		$	406,275		$	358,193
Tenant recoveries	24,982			22,657			67,421			64,493
Parking and other	8,035			5,521			22,146			16,103
Total Office revenues	172,174			152,097			495,842			438,789
Media & Entertainment
Rental	11,012			7,102			26,802			19,987
Tenant recoveries	133			243			927			655
Other property-related revenue	6,561			5,005			14,964			12,784
Other	141			136			271			226
Total Media & Entertainment revenues	17,847			12,486			42,964			33,652
TOTAL REVENUES	190,021			164,583			538,806			472,441
OPERATING EXPENSES
Office operating expenses	59,102			53,975			162,524			150,769
Media & Entertainment operating expenses	10,588			6,499			24,842			18,746
General and administrative	13,013			12,955			41,329			38,474
Depreciation and amortization	71,158			67,414			217,340			201,890
TOTAL OPERATING EXPENSES	153,861			140,843			446,035			409,879
INCOME FROM OPERATIONS	36,160			23,740			92,771			62,562
OTHER EXPENSE (INCOME)
Interest expense	22,461			19,910			66,086			54,775
Interest income	(44		)	(130		)	(90		)	(216		)
Unrealized loss (gain) on ineffective portion of derivative instruments	37			(879		)	82			1,630
Transaction-related expenses	598			315			598			376
Other income	(1,402		)	(693		)	(2,656		)	(716		)
TOTAL OTHER EXPENSES	21,650			18,523			64,020			55,849
INCOME BEFORE GAINS ON SALE OF REAL ESTATE	14,510			5,217			28,751			6,713
Gains on sale of real estate	—			—			16,866			8,515
NET INCOME	14,510			5,217			45,617			15,228
Net income attributable to preferred units	(159		)	(159		)	(477		)	(477		)
Net income attributable to participating securities	(255		)	(196		)	(750		)	(589		)
Net income attributable to non-controlling interest in consolidated entities	(2,991		)	(2,525		)	(9,002		)	(6,866		)
Net income attributable to non-controlling interest in units in the operating partnership	(41		)	(490		)	(256		)	(2,357		)
Net income attributable to Hudson Pacific Properties, Inc. common stockholders	$	11,064		$	1,847		$	35,132		$	4,939
Basic and diluted per share amounts:
Net income attributable to common stockholders—basic	$	0.07		$	0.02		$	0.23		$	0.05
Net income attributable to common stockholders—diluted	$	0.07		$	0.02		$	0.23		$	0.05
Weighted average shares of common stock outstanding—basic	155,302,800			115,083,622			152,874,952			99,862,583
Weighted average shares of common stock outstanding—diluted	156,093,736			116,262,622			153,648,888			100,979,583
Dividends declared per share	$	0.25		$	0.20		$	0.75		$	0.60

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

FUNDS FROM OPERATIONS (Unaudited, in thousands, except per share data)

	Three Months Ended
Quarter To Date	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Funds From Operations (“FFO”)⁽¹⁾
Net income	$	14,510		$	6,954		$	24,153		$	28,530		$	5,217
Adjustments:
Depreciation and amortization of real estate assets	70,555			74,939			70,294			66,720			66,965
Gains on sale of real estate	—			—			(16,866		)	(21,874		)	—
FFO attributable to non-controlling interests	(6,609		)	(6,445		)	(5,507		)	(5,243		)	(4,902		)
Net income attributable to preferred units	(159		)	(159		)	(159		)	(159		)	(159		)
FFO to common stockholders and unitholders	78,297			75,289			71,915			67,974			67,121
Specified items impacting FFO:
Transaction-related expenses	598			—			—			—			315
FFO (excluding specified items) to common stockholders and unitholders	$	78,895		$	75,289		$	71,915		$	67,974		$	67,436

Weighted average common stock/units outstanding—diluted	156,663			156,665			150,335			146,955			146,793
FFO per common stock/unit—diluted	$	0.50		$	0.48		$	0.48		$	0.46		$	0.46
FFO (excluding specified items) per common stock/unit—diluted	$	0.50		$	0.48		$	0.48		$	0.46		$	0.46

	Nine Months Ended			Six Months Ended			Three Months Ended			Twelve Months Ended			Nine Months Ended
Year To Date	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Funds From Operations (“FFO”)⁽¹⁾
Net income	$	45,617		$	31,107		$	24,153		$	43,758		$	15,228
Adjustments:
Depreciation and amortization of real estate assets	215,788			145,233			70,294			267,245			200,525
Gains on sale of real estate	(16,866		)	(16,866		)	(16,866		)	(30,389		)	(8,515		)
FFO attributable to non-controlling interests	(18,561		)	(11,952		)	(5,507		)	(18,817		)	(13,574		)
Net income attributable to preferred units	(477		)	(318		)	(159		)	(636		)	(477		)
FFO to common stockholders and unitholders	225,501			147,204			71,915			261,161			193,187
Specified items impacting FFO:
Transaction-related expenses	598			—			—			376			376
FFO (excluding specified items) to common stockholders and unitholders	$	226,099		$	147,204		$	71,915		$	261,537		$	193,563

Weighted average common stock/units outstanding—diluted	154,511			153,443			150,335			146,739			146,668
FFO per common stock/unit—diluted	$	1.46		$	0.96		$	0.48		$	1.78		$	1.32
FFO (excluding specified items) per common stock/unit—diluted	$	1.46		$	0.96		$	0.48		$	1.78		$	1.32

_____________________


(1)	See page 34 for Management’s Statements on FFO.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

ADJUSTED FUNDS FROM OPERATIONS (Unaudited, in thousands)

	Three Months Ended
Quarter To Date	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Adjusted Funds From Operations (“AFFO”)⁽¹⁾
FFO	$	78,297		$	75,289		$	71,915		$	67,974		$	67,121
Adjustments:
Straight-line rent, net	(8,539		)	(7,652		)	3,084			(9,069		)	(7,510		)
Amortization of above-market and below-market leases, net	(3,741		)	(4,493		)	(5,564		)	(5,776		)	(4,347		)
Amortization of above-market and below-market ground leases, net	618			833			637			556			534
Amortization of lease incentive costs	323			320			320			311			303
Amortization of deferred financing costs and loan premium, net	1,155			1,154			1,157			1,155			1,128
Unrealized loss (gain) on ineffective portion of derivative instrument	37			51			(6		)	(194		)	(879		)
Recurring capital expenditures, tenant improvements and lease commissions	(22,410		)	(29,551		)	(31,712		)	(28,075		)	(22,903		)
Non-cash compensation expense	3,449			3,887			3,901			4,213			3,288
AFFO	$	49,189		$	39,838		$	43,732		$	31,095		$	36,735

Dividends paid to common stock and unitholders	$	39,245		$	39,919		$	39,919		$	29,350		$	29,350
AFFO payout ratio	79.8		%	100.2		%	91.3		%	94.4		%	79.9		%

	Nine Months Ended			Six Months Ended			Three Months Ended			Twelve Months Ended			Nine Months Ended
Year To Date	September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016			September 30, 2016
Adjusted Funds From Operations (“AFFO”)⁽¹⁾
FFO	$	225,501		$	147,204		$	71,915		$	261,161		$	193,187
Adjustments:
Straight-line rent, net	(13,107		)	(4,568		)	3,084			(26,348		)	(17,279		)
Amortization of above-market and below-market leases, net	(13,798		)	(10,057		)	(5,564		)	(19,118		)	(13,342		)
Amortization of above-market and below-market ground leases, net	2,088			1,470			637			2,160			1,604
Amortization of lease incentive costs	963			640			320			1,151			840
Amortization of deferred financing costs and loan premium, net	3,466			2,311			1,157			4,856			3,701
Unrealized loss (gain) on ineffective portion of derivative instrument	82			45			(6		)	1,436			1,630
Recurring capital expenditures, tenant improvements and lease commissions	(83,673		)	(61,263		)	(31,712		)	(95,294		)	(67,219		)
Non-cash compensation expense	11,237			7,788			3,901			14,144			9,931
AFFO	$	132,759		$	83,570		$	43,732		$	144,148		$	113,053

Dividends paid to common stock and unitholders	$	118,408		$	79,163		$	39,919		$	117,819		$	88,469
AFFO payout ratio	89.2		%	94.7		%	91.3		%	81.7		%	78.3		%

_____________________


(1)	See page 34 for Management’s Statements on AFFO.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

DEBT SUMMARY

(Unaudited, in thousands)

The following table sets forth information with respect to the amounts included in notes payable, net as of:



	September 30, 2017			December 31, 2016			Interest Rate⁽¹⁾	Contractual Maturity Date		Annual Debt Service⁽²⁾		Balance at Maturity
UNSECURED NOTES PAYABLE
Unsecured Revolving Credit Facility⁽³⁾	$	250,000		$	300,000		LIBOR + 1.15% to 1.85%	4/1/2019	⁽⁴⁾	$	—	$	250,000
5-Year Term Loan due April 2020⁽³⁾⁽⁵⁾	450,000			450,000			LIBOR + 1.30% to 2.20%	4/1/2020		—		450,000
5-Year Term Loan due November 2020⁽³⁾	175,000			175,000			LIBOR + 1.30% to 2.20%	11/17/2020		—		175,000
7-Year Term Loan due April 2022⁽³⁾⁽⁶⁾	350,000			350,000			LIBOR + 1.60% to 2.55%	4/1/2022		11,760		350,000
7-Year Term Loan due November 2022⁽³⁾⁽⁷⁾	125,000			125,000			LIBOR + 1.60% to 2.55%	11/17/2022		3,788		125,000
Series A Notes	110,000			110,000			4.34%	1/2/2023		4,774		110,000
Series E Notes	50,000			50,000			3.66%	9/15/2023		1,830		50,000
Series B Notes	259,000			259,000			4.69%	12/16/2025		12,147		259,000
Series D Notes	150,000			150,000			3.98%	7/6/2026		5,970		150,000
Series C Notes	56,000			56,000			4.79%	12/16/2027		2,682		56,000
TOTAL UNSECURED NOTES PAYABLE	1,975,000			2,025,000						42,951		1,975,000

SECURED NOTES PAYABLE
Rincon Center⁽⁸⁾	98,896			100,409			5.13%	5/1/2018		7,195		97,854
Sunset Gower Studios/Sunset Bronson Studios	5,001			5,001			LIBOR + 2.25%	3/4/2019	⁽⁴⁾	—		5,001
Met Park North⁽⁹⁾	64,500			64,500			LIBOR + 1.55%	8/1/2020		2,393		64,500
10950 Washington⁽⁸⁾	27,549			27,929			5.32%	3/11/2022		2,003		24,981
Pinnacle I^(10)(11)	129,000			129,000			3.95%	11/7/2022		5,101		117,190
Element L.A.	168,000			168,000			4.59%	11/6/2025		7,716		168,000
Pinnacle II⁽¹¹⁾	87,000			87,000			4.30%	6/11/2026		3,741		87,000
Hill7⁽¹²⁾	101,000			101,000			3.38%	11/6/2026		3,414		101,000
TOTAL SECURED NOTES PAYABLE	680,946			682,839						31,563		665,526
TOTAL NOTES PAYABLE	2,655,946			2,707,839						74,514		2,640,526
Held for sale balances⁽¹¹⁾	(216,000		)	(216,000		)
Deferred financing costs, net⁽¹³⁾	(15,588		)	(18,516		)
TOTAL NOTES PAYABLE, NET⁽¹⁴⁾	$	2,424,358		$	2,473,323

_____________________


(1)	Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of September 30, 2017, which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness.

(2)

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 September 30, 2017. Amount doesn’t include interest payment of variable rate loans that are partially effectively fixed through derivative instruments.


(3)	We have the option to make an irrevocable election to change the interest rate depending on our credit rating. As of September 30, 2017, no such election had been made.


(4)	The maturity date may be extended once for an additional one-year term.


(5)	Effective July 2016, $300.0 million of the term loan was effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps.


(6)	Effective July 2016, the outstanding balance of the term loan was effectively fixed at 3.36% to 4.31% per annum through the use of two interest rate swaps.


(7)	Effective June 1, 2016, the outstanding balance of the term loan was effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information


(8)	Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.


(9)	This loan bears interest only. Interest on the full loan amount was effectively fixed at 3.71% per annum through the use of an interest rate swap.


(10)	This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.


(11)	We own 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties. The full amount of the loan is shown. The consolidated joint venture that owns Pinnacle I and Pinnacle II entered into an agreement on September 14, 2017 to sell the properties. We expect the sale to close in the fourth quarter of 2017.


(12)	We own 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. The maturity date of this loan can be extended for an additional two years at a higher interest rate and with principal amortization.


(13)	Excludes deferred financing costs related to properties held for sale and amounts related to establishing our unsecured revolving credit facility.


(14)	Excludes amounts related to a public offering of $400 million aggregate principal amount of 3.950% senior notes due 2027 that closed October 2, 2017. Proceeds were used to repay $150.0 million of our 5-year term loan due April 2020 and to repay outstanding borrowings under our unsecured revolving credit facility.

PORTFOLIO DATA

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾

Location	Submarket	Square Feet⁽²⁾	Percent Occupied⁽³⁾		Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
SAME-STORE⁽⁵⁾
Greater Seattle, Washington
Northview Center	Lynnwood	182,009	90.3	%	90.3	%	$	3,542,820	$	21.56
Met Park North	South Lake Union	190,748	95.8		95.8		5,193,943		28.43
Merrill Place	Pioneer Square	163,768	93.9		95.8		4,707,130		30.61
505 First Avenue	Pioneer Square	288,140	97.4		97.4		6,305,341		22.47
83 King Street	Pioneer Square	185,206	89.4		100.0		4,717,913		28.49
Subtotal		1,009,871	93.8	%	96.0	%	$	24,467,147	$	25.84
San Francisco Bay Area, California
1455 Market Street⁽⁶⁾	San Francisco	1,025,833	99.7	%	99.7	%	$	38,464,971	$	37.60
275 Brannan Street	San Francisco	54,673	100.0		100.0		3,261,352		59.65
625 Second Street	San Francisco	138,080	100.0		100.0		8,519,069		61.71
875 Howard Street	San Francisco	286,270	100.0		100.0		12,197,068		42.63
901 Market Street	San Francisco	206,218	100.0		100.0		11,091,636		53.79
Rincon Center	San Francisco	580,850	65.9		94.5		17,753,057		46.39
Towers at Shore Center	Redwood Shores	334,483	82.5		83.9		16,179,383		58.61
Skyway Landing	Redwood Shores	247,173	88.9		88.9		9,805,706		44.60
Lockheed	Palo Alto	42,899	100.0		100.0		3,011,716		70.20
2180 Sand Hill Road	Palo Alto	45,613	97.2		97.2		4,308,724		97.22
3400 Hillview	Palo Alto	207,857	100.0		100.0		13,334,941		64.15
Clocktower Square	Palo Alto	100,344	71.0		71.0		5,295,956		74.34
Embarcadero Place	Palo Alto	197,402	77.2		77.2		6,935,719		45.52
Foothill Research Center	Palo Alto	195,376	100.0		100.0		12,870,949		65.88
Page Mill Center⁽⁷⁾	Palo Alto	176,245	99.9		99.9		12,054,825		68.44
Campus Center	Milpitas	471,580	100.0		100.0		15,845,088		33.60
1740 Technology	North San Jose	206,876	98.0		98.0		7,461,400		36.79
Concourse	North San Jose	944,386	90.9		96.2		27,573,280		32.13
Skyport Plaza	North San Jose	418,086	96.5		96.5		13,542,821		33.57
Subtotal		5,880,244	92.1	%	95.8	%	$	239,507,661	$	44.25
Los Angeles, California
6922 Hollywood	Hollywood	205,523	85.4	%	87.7	%	$	8,085,812	$	46.08
Technicolor Building	Hollywood	114,958	100.0		100.0		5,220,427		45.41
3401 Exposition	West Los Angeles	63,376	100.0		100.0		2,783,957		43.93
10900 Washington	West Los Angeles	9,919	100.0		100.0		422,549		42.60
10950 Washington	West Los Angeles	159,025	100.0		100.0		6,721,786		42.27
9300 Wilshire	West Los Angeles	61,422	79.9		85.4		2,337,285		47.64
Element LA	West Los Angeles	284,037	100.0		100.0		15,871,935		55.88
Del Amo Office	Torrance	113,000	100.0		100.0		3,327,208		29.44
Subtotal		1,011,260	95.8	%	96.6	%	$	44,770,959	$	46.21
Total Same-Store		7,901,375	92.8	%	95.9	%	$	308,745,767	$	42.13

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY⁽¹⁾

NON-SAME-STORE
San Francisco Bay Area, California
555 Twin Dolphin Plaza	Redwood Shores	198,936	94.1	%	95.9	%	$	9,500,616	$	50.74
Page Mill Hill	Palo Alto	182,676	87.1		87.1		10,305,841		64.75
Subtotal		381,612	90.8	%	91.7	%	$	19,806,457	$	57.18
Los Angeles, California
ICON	Hollywood	325,757	100.0	%	100.0	%	$	17,800,735	$	54.64
Subtotal		325,757	100.0	%	100.0	%	$	17,800,735	$	54.64
Total Non-Same-Store		707,369	95.0	%	95.5	%	$	37,607,192	$	55.95
Total Stabilized		8,608,744	92.9	%	95.9	%	$	346,352,959	$	43.29
LEASE-UP
Greater Seattle, Washington
Hill7⁽⁸⁾	South Lake Union	284,116	90.0	%	100.0	%	$	9,370,409	$	36.63
Subtotal		284,116	90.0	%	100.0	%	$	9,370,409	$	36.63
San Francisco Bay Area, California
Peninsula Office Park	San Mateo	510,789	77.4	%	77.4	%	$	19,072,018	$	48.23
Metro Center	Foster City	730,215	76.0		79.9		26,100,970		47.06
333 Twin Dolphin Plaza	Redwood Shores	182,789	74.6		74.6		7,633,285		55.98
Shorebreeze	Redwood Shores	230,932	70.6		70.6		9,135,863		56.07
Palo Alto Square	Palo Alto	333,254	75.4		75.4		20,045,941		79.75
Techmart Commerce Center	Santa Clara	284,440	82.0		89.7		9,715,478		41.66
Gateway	North San Jose	609,093	81.9		87.1		16,848,532		33.79
Metro Plaza	North San Jose	456,921	76.0		76.0		12,059,120		34.73
Subtotal		3,338,433	77.3	%	79.8	%	$	120,611,207	$	46.75
Los Angeles, California
11601 Wilshire	West Los Angeles	500,475	86.1	%	88.1	%	$	17,774,657	$	41.26
Subtotal		500,475	86.1	%	88.1	%	$	17,774,657	$	41.26
Total Lease-Up		4,123,024	79.2	%	82.2	%	$	147,756,273	$	45.24

TOTAL IN-SERVICE		12,731,768	88.5	%	91.5	%	$	494,109,232	$	43.85

_____________________

(1)

Our in-service portfolio excludes the redevelopment, development, properties held for sale and land properties described on pages 17 and 18. As of September 30, 2017, we had two office development properties under construction, four office redevelopment properties under construction, two properties held for sale and eight land properties (see pages 17 and 18). We define lease-up properties as properties that have not yet reached 92.0% occupancy since the date they were acquired or placed under redevelopment or development.


(2)	Square footage for office properties 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)	Percent occupied for office properties is calculated as (i) square footage under commenced leases as of September 30, 2017, 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)) under commenced leases as of September 30, 2017, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of September 30, 2017. Annualized base rent does not reflect tenant reimbursements.


(5)	Defined as all of the properties owned and included in our stabilized portfolio as of July 1, 2016 and still owned and included in the stabilized portfolio as of September 30, 2017. As of September 30, 2017 the Pinnacle I and Pinnacle II properties were removed from the Same-Store population and classified as Held for Sale.


(6)	We own 55% of the ownership interests in the consolidated joint venture that owns the 1455 Market Street property.


(7)	Page Mill Center is not part of the Same-Store population for the nine months ended September 30, 2017. Same-Store for the nine months ended September 30, 2017 is defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2016 and still owned and included in the stabilized portfolio as of September 30, 2017.


(8)	We own 55% of the ownership interests in the consolidated joint venture that owns the Hill7 property.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO SUMMARY⁽¹⁾

			Occupied Square Feet	Percent Occupied⁽³⁾		Leased Square Feet	Percent Leased⁽³⁾		Annualized Base Rent⁽⁴⁾		Annualized Base Rent Per Square Foot⁽⁴⁾
Location	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
Greater Seattle, Washington
Lynnwood	1	182,009	164,326	90.3	%	164,326	90.3	%	$	3,542,820	$	21.56
South Lake Union	1	190,748	182,692	95.8		182,692	95.8		5,193,943		28.43
Pioneer Square	3	637,114	600,027	94.2		622,684	97.7		15,730,384		26.22
Subtotal	5	1,009,871	947,045	93.8	%	969,702	96.0	%	$	24,467,147	$	25.84

San Francisco Bay Area, California
San Francisco	6	2,291,924	2,090,731	91.2	%	2,257,191	98.5	%	$	91,287,153	$	43.66
Redwood Shores	3	780,592	683,122	87.5		691,345	88.6		35,485,705		51.95
Palo Alto	8	1,148,412	1,049,364	91.4		1,049,364	91.4		68,118,671		64.91
Milpitas	1	471,580	471,580	100.0		471,580	100.0		15,845,088		33.60
North San Jose	3	1,569,348	1,464,457	93.3		1,514,618	96.5		48,577,501		33.17
Subtotal	21	6,261,856	5,759,254	92.0	%	5,984,098	95.6	%	$	259,314,118	$	45.03

Los Angeles, California
Hollywood	3	646,238	616,186	95.3	%	620,943	96.1	%	31,106,974		$	50.48
West Los Angeles	5	577,779	565,421	97.9		568,835	98.5		28,137,512		49.76
Torrance	1	113,000	113,000	100.0		113,000	100.0		3,327,208		29.44
Subtotal	9	1,337,017	1,294,607	96.8	%	1,302,778	97.4	%	$	62,571,694	$	48.33

Total Stabilized	35	8,608,744	8,000,906	92.9	%	8,256,578	95.9	%	$	346,352,959	$	43.29

LEASE-UP
Greater Seattle, Washington
South Lake Union	1	284,116	255,829	90.0	%	284,116	100.0	%	$	9,370,409	$	36.63
Subtotal	1	284,116	255,829	90.0	%	284,116	100.0	%	$	9,370,409	$	36.63

San Francisco Bay Area, California
San Mateo	1	510,789	395,450	77.4	%	395,450	77.4	%	$	19,072,018	$	48.23
Foster City	1	730,215	554,635	76.0		583,478	79.9		26,100,970		47.06
Redwood Shores	2	413,721	299,303	72.3		299,303	72.3		16,769,148		56.03
Palo Alto	1	333,254	251,355	75.4		251,355	75.4		20,045,941		79.75
Santa Clara	1	284,440	233,227	82.0		255,018	89.7		9,715,478		41.66
North San Jose	2	1,066,014	845,803	79.3		877,806	82.3		28,907,652		34.18
Subtotal	8	3,338,433	2,579,773	77.3	%	2,662,410	79.8	%	$	120,611,207	$	46.75

Los Angeles, California
West Los Angeles	1	500,475	430,783	86.1	%	441,104	88.1	%	$	17,774,657	$	41.26
Subtotal	1	500,475	430,783	86.1	%	441,104	88.1	%	$	17,774,657	$	41.26
Total Lease-up	10	4,123,024	3,266,385	79.2	%	3,387,630	82.2	%	$	147,756,273	$	45.24

TOTAL IN-SERVICE	45	12,731,768	11,267,291	88.5	%	11,644,208	91.5	%	$	494,109,232	$	43.85

_____________________

Refer to footnotes on page 15.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

REDEVELOPMENT, DEVELOPMENT AND HELD FOR SALE OFFICE SUMMARY⁽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⁾
Location	Submarket	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⁾
REDEVELOPMENT
Los Angeles, CA
MaxWell (formerly 405 Mateo)	Downtown Los Angeles	99,090	—	—	%	—	—	%		$	—	$	—
4th & Traction	Downtown Los Angeles	120,937	—	—		—	—			—		—
604 Arizona	West Los Angeles	44,260	—	—		44,260	100.0		⁽⁵⁾	—		—
Subtotal		264,287	—	—	%	44,260	16.7	%		$	—	$	—

Greater Seattle, WA
95 Jackson (formerly Merrill Place Theater Building)	Pioneer Square	31,659	—	—	%	—	—	%	⁽⁶⁾	$	—	$	—
Subtotal		31,659	—	—	%	—	—	%		$	—	$	—

Total Redevelopment		295,946	—	—	%	44,260	15.0	%		$	—	$	—

DEVELOPMENT
Los Angeles, CA
CUE	Hollywood	91,953	—	—	%	91,953	100.0	%	⁽⁷⁾	$	—	$	—
Subtotal		91,953	—	—	%	91,953	100.0	%		$	—	$	—

Greater Seattle, WA
450 Alaskan Way	Pioneer Square	170,974	—	—	%	94,330	55.2	%	⁽⁶⁾⁽⁸⁾	$	—	$	—
Subtotal		170,974	—	—	%	94,330	55.2	%		$	—	$	—

Total Development		262,927	—	—	%	186,283	70.8	%		$	—	$	—

HELD FOR SALE
Los Angeles, CA
Pinnacle I⁽⁹⁾	Burbank	393,777	382,160	97.0	%	382,160	97.0	%		$	15,995,592	$	41.86
Pinnacle II⁽⁹⁾	Burbank	230,000	230,000	100.0		230,000	100.0			9,281,389		$	40.35
Total Held for Sale		623,777	612,160	98.1	%	612,160	98.1	%		$	25,276,981	$	41.29

TOTAL		1,182,650	612,160	51.8	%	842,703	71.3	%		$	25,276,981	$	41.29

_____________________


(1)	Excludes in-service properties and land assets (see pages 14, 15 and 18).


(2)	Square footages have 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)	Percent occupied for office properties is calculated as (i) square footage under commenced leases as of September 30, 2017, 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)) under commenced leases as of September 30, 2017, 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 lease as of September 30, 2017. Annualized base rent does not reflect tenant reimbursements.


(5)	ZipRecruiter, Inc. is anticipated to commence on February 1, 2018.


(6)	Subsequent to September 30, 2017, we entered into an agreement with the Regus Corporation to lease 25,086 square feet at 95 Jackson and 21,296 square feet at 450 Alaskan Way.


(7)	Netflix, Inc. is anticipated to commence 52,626 square feet on August 1, 2018 and 39,327 square feet on April 1, 2019.


(8)	Saltchuk Resources, Inc. is anticipated to commence 94,330 square feet on November 27, 2017.


(9)	We own 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

LAND PROPERTIES SUMMARY



Location	Submarket	Square Feet⁽¹⁾	Percent of Total
San Francisco Bay Area, California
Cloud10 (formerly Skyport Plaza)	North San Jose	350,000	11.5	%
Campus Center	Milpitas	946,350	31.1
Subtotal		1,296,350	42.6	%

Los Angeles, California
EPIC	Hollywood	300,000	9.8	%
Sunset Bronson—Lot D⁽²⁾	Hollywood	19,816	0.7
Sunset Gower—Redevelopment	Hollywood	423,396	13.9
Sunset Las Palmas—1021 Seward Street⁽³⁾	Hollywood	106,125	3.5
Sunset Las Palmas—Redevelopment	Hollywood	400,000	13.1
Element LA	West Los Angeles	500,000	16.4
Subtotal		1,749,337	57.4	%

TOTAL		3,045,687	100.0	%

_____________________


(1)	Square footage for land assets represents management’s estimate of developable square feet, the majority of which remains subject to entitlement approvals that have not yet been obtained.


(2)	Square footage for Sunset Bronson Lot D represents management’s estimate of developable square feet for 33 residential units.


(3)	Square footage for Sunset Las Palmas—1021 Seward Street would require the demolition of approximately 45,000 square feet of existing improvements.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

MEDIA & ENTERTAINMENT PORTFOLIO SUMMARY



Property	Square Feet		Percent of Total		Percent Leased			Annual Base Rent			Annual Base Rent Per Leased Square Foot
Sunset Gower	564,976	⁽¹⁾	45.2	%	88.6	%		$	16,609,189		$	33.19
Sunset Bronson	308,026		24.6		94.4			10,790,332			37.12
Total Same-Store Media & Entertainment	873,002		69.8	%	90.6	%	⁽²⁾	$	27,399,521	⁽³⁾	$	34.63	⁽⁴⁾

Sunset Las Palmas⁽⁵⁾	376,925		30.2	%	75.7	%
Total Non-Same-Store Media & Entertainment	376,925		30.2	%	75.7	%	⁽⁶⁾

Total Media & Entertainment	1,249,927		100.0	%

_____________________


(1)	Square footage for Sunset Gower excludes restaurant space containing 6,650 square feet that was taken off-line for redevelopment during the three months ended September 30, 2017.


(2)	Percent leased for Same-Store Media and Entertainment properties is the average percent leased for the 12 months ended September 30, 2017.


(3)	Annual base rent for Same-Store Media and Entertainment properties reflects actual base rent for the 12 months ended September 30, 2017, excluding tenant reimbursements.


(4)	Annual base rent per leased square foot for the Same-Store Media and Entertainment properties is calculated as (i) annual base rent divided by (ii) square footage under lease as of September 30, 2017.


(5)	The base rent for Sunset Las Palmas for the five months ended September 30, 2017 is $4,787,707 ($40.46 per leased square foot), excluding tenant reimbursements.


(6)	Percent leased for Non-Same-Store Media and Entertainment properties is the average percent leased for the five months ended September 30, 2017.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

CURRENT VALUE CREATION DEVELOPMENT PROJECTS

(Unaudited, in thousands, except square feet)

Estimated Construction Period

Project Costs⁽¹⁾

City

Start Date

Estimated Completion Date

Estimated

Stabilization Date⁽²⁾

Estimated Square Feet⁽³⁾

Total %Leased

Project Costs
as of 9/30/17

Total Estimated Project Costs

Estimated Initial Stabilized Yield on Project Costs⁽⁴⁾

UNDER CONSTRUCTION

Greater Seattle, Washington

450 Alaskan Way

Seattle

Q1-2016

Q3-2017

Q2-2018

170,974

55.2

⁽⁵⁾⁽⁶⁾

71,027

⁽⁷⁾

93,194

⁽⁷⁾

6.7%

95 Jackson
(formerly Merrill Place Theater Building)⁽⁸⁾

Seattle

Q3-2017

Q2-2018

Q4-2018

31,659

—

⁽⁶⁾

2,689

14,603

7.5%

Los Angeles, California

CUE⁽⁹⁾

Hollywood

Q1-2016

Q3-2017

Q2-2019

91,953

100.0

⁽¹⁰⁾

41,340

52,555

8.5%

4th & Traction

Los Angeles

Q4-2015

Q2-2017

Q4-2018

120,937

—

82,608

⁽¹¹⁾

96,425

⁽¹¹⁾

6.2%

MaxWell (formerly 405 Mateo)

Los Angeles

Q2-2017

Q4-2018

Q2-2019

99,090

—

48,211

⁽¹²⁾

85,627

⁽¹²⁾

6.1%

EPIC

Hollywood

Q3-2017

Q1-2020

Q3-2021

300,000

—

14,364

⁽¹³⁾

201,598

⁽¹³⁾

7.1%

Total Under Construction

814,613

260,239

544,002

FUTURE DEVELOPMENT PIPELINE

San Francisco Bay Area, California

Cloud10 (formerly Skyport Plaza)

North
San Jose

TBD

350,000

N/A

11,108

⁽¹⁴⁾

TBD

Campus Center

Milpitas

TBD

946,350

N/A

7,396

⁽¹⁵⁾

TBD

Los Angeles, California

Sunset Bronson—Lot D

Hollywood

TBD

19,816

N/A

TBD

Sunset Gower—Redevelopment

Hollywood

TBD

423,396

N/A

TBD

Sunset Las Palmas—

1021 Seward Street

Hollywood

TBD

106,125

⁽¹⁶⁾

N/A

TBD

Redevelopment

Hollywood

TBD

400,000

N/A

TBD

Total

506,125

25,000

⁽¹⁷⁾

TBD

Element LA

Los Angeles

TBD

500,000

N/A

TBD

Total Future Development Pipeline

2,745,687

_____________________


(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 management’s estimate of stabilized occupancy (92.0%).

(3)

Square footage for office properties has been determined by management based upon estimated leasable square feet, 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 assets represents management’s estimate of developable square feet, the majority of which remains subject to entitlement approvals that have not yet been obtained.

(4)

Estimated initial stabilized yield on project costs is calculated as the quotient of the estimated amounts of 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 initial estimates at the commencement of the project. We

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

expect to update this information upon completion of the project, or sooner if there are significant changes to the expected project yields or costs. We caution you not to place 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.


(5)	Saltchuk Resources, Inc. is anticipated to commence 94,330 square feet on November 27, 2017.


(6)	Subsequent to September 30, 2017, we entered into an agreement with the Regus Corporation to lease 25,086 square feet at 95 Jackson and 21,296 square feet at 450 Alaskan Way.


(7)	Project Costs as of September 30, 2017 and Total Estimated Project Costs for 450 Alaskan Way include $7.0 million for management’s estimate of allocated land and acquisition costs.


(8)	Project Costs as of September 30, 2017 and Total Estimated Project Costs for 95 Jackson (formerly Merrill Place Theater Building) exclude land.


(9)	The costs of the 1,635-stall parking structure (for ICON, CUE and Sunset Bronson) and certain other development costs attributable to ICON and CUE have been allocated based on management’s estimate of CUE’s share of such costs. Project Costs and Total Estimated Project Costs exclude land.


(10)	Netflix, Inc. is anticipated to commence 52,626 square feet on August 1, 2018 and 39,327 square feet in April 1, 2019.


(11)	Project Costs as of September 30, 2017 and Total Estimated Project Costs for 4th & Traction include approximately $49.4 million of initial acquisition cost for existing 120,937-square-foot building.


(12)	Project Costs as of September 30, 2017 and Total Estimated Project Costs for MaxWell (formerly 405 Mateo) include approximately $40.0 million of initial acquisition costs for the existing 99,090-square-foot

building.


(13)	Project Costs as of September 30, 2017 and Total Estimated Project Costs for EPIC exclude land.


(14)	Project Costs as of September 30, 2017 for Cloud10 (formerly Skyport Plaza) include approximately $10.5 million for management’s estimate of allocated land and acquisition costs.


(15)	Project Costs as of September 30, 2017 for Campus Center include approximately $7.0 million for management’s estimate of allocated land and acquisition costs.


(16)	Square footage for Sunset Las Palmas—1021 Seward Street would require the demolition of approximately 45,000 square feet of existing improvements.


(17)	Project Costs as of September 30, 2017 for Sunset Las Palmas—1021 Seward Street and Redevelopment include $25.0 million for management’s estimate of allocated land and acquisition costs.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾

(Unaudited, tabular amounts in thousands, except number of properties and square feet)



	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			% change		2017			2016			% change
Same-Store office statistics⁽²⁾
Number of properties	32			32					31			31
Rentable square feet	7,901,375			7,901,375					7,725,130			7,725,130
Ending % leased	95.9		%	95.6		%	0.3	%	95.9		%	95.5		%	0.4	%
Ending % occupied	92.8		%	94.6		%	(1.8	)%	92.5		%	94.5		%	(2.0	)%
Average % occupied for the period	93.3		%	92.7		%	0.6	%	94.1		%	94.4		%	(0.3	)%

Same-Store Media & Entertainment statistics⁽³⁾
Number of properties	2			2					2			2
Rentable square feet	873,002			873,002					873,002			873,002
Average % occupied for the period	90.6		%	87.4		%	3.2	%	90.6		%	87.4		%	3.2	%

SAME-STORE ANALYSIS—GAAP BASIS

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			% change		2017			2016			% change
Same-Store net operating income—GAAP basis
Total office revenues	$	104,634		$	98,790		5.9	%	$	292,508		$	278,801		4.9	%
Total Media & Entertainment revenues	13,470			12,486			7.9		35,213			33,652			4.6
Total revenues	$	118,104		$	111,276		6.1	%	$	327,721		$	312,453		4.9	%

Total office expense	$	33,513		$	31,813		5.3	%	$	87,306		$	89,187		(2.1	)%
Total Media & Entertainment expense	7,334			6,499			12.8		19,520			18,746			4.1
Total property expense	$	40,847		$	38,312		6.6	%	$	106,826		$	107,933		(1.0	)%

Same-Store office net operating income—GAAP basis	$	71,121		$	66,977		6.2	%	$	205,202		$	189,614		8.2	%
NOI Margin	68.0		%	67.8		%	0.2	%	70.2		%	68.0		%	2.2	%
Same-Store Media & Entertainment net operating income—GAAP basis	$	6,136		$	5,987		2.5	%	$	15,693		$	14,906		5.3	%
NOI Margin	45.6		%	47.9		%	(2.3	)%	44.6		%	44.3		%	0.3	%
Same-Store total property net operating income—GAAP basis	$	77,257		$	72,964		5.9	%	$	220,895		$	204,520		8.0	%
NOI Margin	65.4		%	65.6		%	(0.2	)%	67.4		%	65.5		%	1.9	%

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾—CONTINUED

(Unaudited, tabular amounts in thousands)



SAME-STORE ANALYSIS—CASH BASIS

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017			2016			% change		2017				2016			% change
Same-Store net operating income—Cash basis
Total office revenues	$	101,030		$	91,864		10.0	%	$	288,906		⁽⁴⁾	$	265,333		8.9	%
Total Media & Entertainment revenues	14,027			12,282			14.2		35,652				33,126			7.6
Total revenues	$	115,057		$	104,146		10.5	%	$	324,558			$	298,459		8.7	%

Total office expense	$	32,998		$	31,298		5.4	%	$	85,880			$	87,761		(2.1	)%
Total Media & Entertainment expense	7,334			6,499			12.8		19,520				18,746			4.1
Total property expense	$	40,332		$	37,797		6.7	%	$	105,400			$	106,507		(1.0	)%

Same-Store office net operating income—Cash basis	$	68,032		$	60,566		12.3	%	$	203,026			$	177,572		14.3	%
NOI Margin	67.3		%	65.9		%	1.4	%	70.3		%		66.9		%	3.4	%
Same-Store Media & Entertainment net operating income—Cash basis	$	6,693		$	5,783		15.7	%	$	16,132			$	14,380		12.2	%
NOI Margin	47.7		%	47.1		%	0.6	%	45.2		%		43.4		%	1.8	%
Same-Store total property net operating income—Cash basis	$	74,725		$	66,349		12.6	%	$	219,158			$	191,952		14.2	%
NOI Margin	64.9		%	63.7		%	1.2	%	67.5		%		64.3		%	3.2	%

_____________________

(1)

Same-Store for the three months ended September 30, 2017 is defined as all of the properties owned and included in our stabilized portfolio as of July 1, 2016 and still owned and included in the stabilized portfolio as of September 30, 2017. Same-Store for the nine months ended September 30, 2017 is defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2016 and still owned and included in the stabilized portfolio as of September 30, 2017. As of September 30, 2017 the Pinnacle I and Pinnacle II properties were removed from the Same-Store population and classified as Held for Sale.


(2)	See page 14 for Same-Store office properties.


(3)	See page 19 for Same-Store Media & Entertainment properties. Percent occupied for Same-Store Media and Entertainment properties is the average percent occupied for the 12 months ended September 30, 2017.


(4)	Includes a one-time early lease termination fee of $10,390,400 at Campus Center.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

RECONCILIATION OF GAAP NET INCOME TO NET OPERATING INCOME

(Unaudited, in thousands)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Reconciliation to Net Operating Income
Net Income	$	14,510		$	5,217		$	45,617		$	15,228
Adjustments:
Interest expense	22,461			19,910			66,086			54,775
Interest income	(44		)	(130		)	(90		)	(216		)
Unrealized loss (gain) on ineffective portion of derivative instruments	37			(879		)	82			1,630
Transaction-related expenses	598			315			598			376
Other income	(1,402		)	(693		)	(2,656		)	(716		)
Gains on sale of real estate	—			—			(16,866		)	(8,515		)
Income from operations	$	36,160		$	23,740		$	92,771		$	62,562
Adjustments:
General and administrative	13,013			12,955			41,329			38,474
Depreciation and amortization	71,158			67,414			217,340			201,890
Net Operating Income	$	120,331		$	104,109		$	351,440		$	302,926

Net Operating Income Breakdown
Same-Store office revenues—Cash basis	$	101,030		$	91,864		$	288,906		$	265,333
GAAP adjustments to office revenues—Cash basis	3,604			6,926			3,602			13,468
Same-Store office revenues—GAAP basis	$	104,634		$	98,790		$	292,508		$	278,801

Same-Store Media & Entertainment revenues—Cash basis	$	14,027		$	12,282		$	35,652		$	33,126
GAAP adjustments to media revenues—Cash basis	(557		)	204			(439		)	526
Same-Store Media & Entertainment revenues—GAAP basis	$	13,470		$	12,486		$	35,213		$	33,652

Same-Store property revenues—GAAP basis	$	118,104		$	111,276		$	327,721		$	312,453

Same-Store office expenses—Cash basis	$	32,998		$	31,298		$	85,880		$	87,761
GAAP adjustments to office expenses—Cash basis	515			515			1,426			1,426
Same-Store office expenses—GAAP basis	$	33,513		$	31,813		$	87,306		$	89,187

Same-Store Media & Entertainment expenses—Cash basis	$	7,334		$	6,499		$	19,520		$	18,746
Same-Store Media & Entertainment expenses—GAAP basis	$	7,334		$	6,499		$	19,520		$	18,746

Same-Store property expenses—GAAP basis	$	40,847		$	38,312		$	106,826		$	107,933

Same-Store net operating income—GAAP basis	$	77,257		$	72,964		$	220,895		$	204,520
Non-Same-Store GAAP net operating income	43,074			31,145			130,545			98,406
Net Operating Income	$	120,331		$	104,109		$	351,440		$	302,926

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

NET OPERATING INCOME DETAIL Three Months Ended September 30, 2017 (Unaudited, in thousands)

	Same-Store Office Properties⁽¹⁾			Same-Store Media Properties⁽²⁾			Non-Same-Store Office Properties⁽³⁾			Non-Same-Store Media Properties⁽²⁾			Redevelopment/Development⁽⁴⁾			Lease-Up Properties⁽⁵⁾			Held for Sale⁽⁴⁾			Total Properties
Revenue
Rents
Cash	$	78,101		$	8,777		$	9,555		$	2,791		$	—		$	31,895		$	6,112		$	137,231
GAAP Revenue	3,604			(557		)	1,030			1			—			8,454			408			12,940
Total Rents	$	81,705		$	8,220		$	10,585		$	2,792		$	—		$	40,349		$	6,520		$	150,171

Tenant Reimbursements	$	17,809		$	65		$	1,495		$	67		$	18		$	4,734		$	983		$	25,171
Parking and Other	5,120			5,185			673			1,517			—			1,099			957			14,551
Total Revenue	$	104,634		$	13,470		$	12,753		$	4,376		$	18		$	46,182		$	8,460		$	189,893

Property operating expenses	33,513			7,334			3,550			3,254			33			18,138			2,633			68,455
Property GAAP Net Operating Income	$	71,121		$	6,136		$	9,203		$	1,122		$	(15	)	$	28,044		$	5,827		$	121,438

Square Feet	7,901,375			873,002			707,369			376,925			558,873			4,123,024			623,777			15,164,345
Ending % Leased	95.9		%	90.6		%	95.5		%	75.7		%	41.3		%	82.2		%	98.1		%	89.4		%
Ending % Occupied	92.8		%	90.6		%	95.0		%	75.7		%	—		%	79.2		%	98.1		%	85.4		%
NOI Margin	68.0		%	45.6		%	72.2		%	25.6		%	(83.3		)%	60.7		%	68.9		%	64.0		%
Property GAAP Net Operating Income	$	71,121		$	6,136		$	9,203		$	1,122		$	(15	)	$	28,044		$	5,827		$	121,438
Less : GAAP Revenue	(3,604		)	557			(1,030		)	(1		)	—			(8,454		)	$	(408	)	(12,940		)
Add : GAAP Expense	515			—			92			—			—			11			—			618
Property Cash Net Operating Income	$	68,032		$	6,693		$	8,265		$	1,121		$	(15	)	$	19,601		$	5,419		$	109,116

Net Operating Income Reconciliation	Q3 - 2017
Net Income	$	14,510					(1) See page 14 for Same-Store office properties for the three months ended September 30, 2017.
Adjustments:							(2) See page 19 for Media & Entertainment properties.
Interest expense	22,461						(3) See page 15 for Non-Same-Store office properties.
Interest income	(44		)				(4) See page 17 for redevelopment, development and held for sale properties.
Unrealized gain on ineffective portion of derivative instruments	37						(5) See page 15 for lease-up properties.
Transaction-related expenses	598
Other income	(1,402		)
Income from operations	$	36,160
Adjustments:
General and administrative	13,013
Depreciation and amortization	71,158
Total GAAP Net Operating Income	$	120,331

Property GAAP Net Operating Income	121,438
Disposed Asset	(322		)
Other Income/Inter-Company Eliminations	(785		)
Total GAAP Net Operating Income	$	120,331

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO LEASING ACTIVITY



	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
Total Gross Leasing Activity
Rentable square feet	464,088			1,571,761
Gross New Leasing Activity
Rentable square feet	306,136			1,015,313
New cash rate	$	50.34		$	56.36
Gross Renewal Leasing Activity
Rentable square feet	157,952			556,448
Renewal cash rate	$	55.31		$	53.61
Total Leases Expired and Terminated
Contractual (scheduled) expiration (square feet)	265,593			654,340
Early termination (square feet)	32,694			204,223
Total	298,287			858,563
Net Absorption
Leased rentable square feet	7,849			156,750
Cash Rent Growth⁽¹⁾
Expiring rate	$	43.33		$	40.61
New/renewal rate	$	57.10		$	57.12
Change	31.8		%	40.7		%
Straight-Line Rent Growth⁽²⁾
Expiring Rate	$	39.71		$	37.52
New/renewal rate	$	57.86		$	59.84
Change	45.7		%	59.5		%
Weighted Average Lease Terms
New (in months)	88.8			84.2
Renewal (in months)	40.9			46.0



Tenant Improvements and Leasing Commissions⁽³⁾	Lease Transaction Costs Per Square Foot
	Three Months Ended September 30, 2017				Nine Months Ended September 30, 2017
	Total		Annual		Total		Annual
New leases	$	72.23	$	9.76	$	64.42	$	9.18
Renewal leases	$	12.52	$	3.67	$	14.59	$	3.80
Blended	$	51.91	$	8.59	$	46.78	$	7.94

_____________________


(1)	Represents a comparison between initial stabilized cash rents on new and renewal leases as compared to the expiring cash rents in the same space. New leases are only included if the same space was leased within the previous 12 months.


(2)	Represents a comparison between initial straight-line rents on new and renewal leases as compared to the straight-line rents on expiring leases in the same space. New leases are only included if the same space was leased within the previous 12 months.


(3)	Represents per square foot weighted average lease transaction costs based on the leases executed in the current quarter.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO COMMENCED LEASES WITH NON-RECURRING, UP-FRONT ABATEMENTS⁽¹⁾

Location

Submarket

Square Feet

Lease Start Date

Rent Start Date

Starting Base Rents⁽²⁾

Lease Expiration Date

Greater Seattle, Washington

Hill7

South Lake Union

84,703

1/17/2017

7/17/2017

35.00

7/31/2027

Hill7

South Lake Union

54,336

8/7/2017

1/4/2018

36.14

1/31/2030

Northview Center

Lynnwood

10,634

8/31/2017

12/1/2017

19.31

6/30/2022

San Francisco Bay Area, California

Metro Center⁽³⁾

Foster City

76,922

Various

5/1/2018

43.80

4/30/2028

Shorebreeze

Redwood Shores

20,219

3/15/2017

12/1/2017

61.32

7/31/2024

Palo Alto Square

Palo Alto

39,873

3/17/2017

1/15/2018

87.00

1/31/2028

Metro Center⁽⁴⁾

Foster City

10,625

3/19/2017

69.00

3/31/2027

875 Howard Street

San Francisco

57,074

7/1/2017

11/1/2017

72.00

10/31/2027

875 Howard Street

San Francisco

33,291

9/10/2017

12/1/2017

74.00

11/30/2024

Los Angeles, California

11601 Wilshire⁽⁵⁾

West Los Angeles

30,273

1/1/2017

51.60

2/29/2028

11601 Wilshire

West Los Angeles

12,389

1/1/2017

11/1/2017

55.80

12/31/2026

Pinnacle I⁽⁶⁾

Burbank

12,803

3/1/2017

42.00

9/30/2024

_____________________


(1)	Consists of leases for more than 10,000 square feet that commenced on or prior to September 30, 2017, with three or more months of up-front free rent resulting in a rent start date after the commencement of the three-month period ending September 30, 2017.

(2)

Stated per leased square foot. Calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease commencement date, and (ii) 12, by (iii) the leased square footage. For commenced leases, calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) for the month ended September 30, 2017, and (ii) 12, by (iii) leased square footage. Base rents do not include tenant reimbursements.


(3)	Qualys, Inc. commenced 69,834 square feet on February 1, 2017 and 7,088 square feet on March 15, 2017.


(4)	Tenant paid monthly base rent concurrently with the lease start date on March 19, 2017. Monthly base rent was abated for the subsequent four-month period from April 2017 through July 2017.


(5)	Tenant paid monthly base rent concurrently with the lease start date on January 1, 2017. Monthly base rent is abated for the subsequent nine-month period from February 2017 through October 2017.


(6)	Tenant paid monthly base rent concurrently with the lease start date on March 1, 2017. Monthly base rent is abated for the subsequent seven-month period from April 2017 through October 2017.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

QUARTERLY UNCOMMENCED—NEXT EIGHT QUARTERS⁽¹⁾

	Q4 2017				Q1 2018				Q2 2018			Q3 2018				Q4 2018			Q1 2019			Q2 2019				Q3 2019
Location	SF	Starting Rent/sf ⁽²⁾			SF	Starting Rent/sf ⁽²⁾			SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾			SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾			SF	Starting Rent/sf ⁽²⁾
Greater Seattle, Washington
South Lake Union	—	$	—		—	$	—		—	$	—	—	$	—		—	$	—	28,287	$	36.00	—	$	—		—	$	—
Pioneer Square	96,596	37.65		⁽³⁾	775	30.00			19,616	38.50		—	—			—	—		—	—		—	—			—	—
Subtotal	96,596	$	37.65		775	$	30.00		19,616	$	38.50	—	$	—		—	$	—	28,287	$	36.00	—	$	—		—	$	—
San Francisco Bay Area, California
San Francisco	166,460	$	75.00	⁽⁴⁾	—	$	—		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—		—	$	—
Foster City	28,843	42.96			—	—			—	—		—	—			—	—		—	—		—	—			—	—
Redwood Shores	8,223	65.34			—	—			—	—		—	—			—	—		—	—		—	—			—	—
Santa Clara	21,791	45.73			—	—			—	—		—	—			—	—		—	—		—	—			—	—
North San Jose	27,849	38.50			54,315	33.56			—	—		—	—			—	—		—	—		—	—			—	—
Subtotal	253,166	$	64.50		54,315	$	33.56		—	$	—	—	$	—		—	$	—	—	$	—	—	$	—		—	$	—
Los Angeles, California
Hollywood	4,757	$	84.00		—	$	—		—	$	—	52,626	$	57.60	⁽⁶⁾	—	$	—	—	$	—	39,327	$	57.60	⁽⁶⁾	—	$	—
West Los Angeles	8,263	49.96			49,732	64.88		⁽⁵⁾	—	—		—	—			—	—		—	—		—	—			—	—
Subtotal	13,020	$	62.40		49,732	$	64.88		—	$	—	52,626	$	57.60		—	$	—	—	$	—	39,327	$	57.60		—	$	—
Total Uncommenced	362,782	$	57.28		104,822	$	48.39		19,616	$	38.50	52,626	$	57.60		—	$	—	28,287	$	36.00	39,327	$	57.60		—	$	—

_____________________


(1)	Consists of uncommenced leases, defined as new leases with respect to vacant space, executed on or prior to September 30, 2017 but with commencement dates after September 30, 2017 and within the next eight quarters. This table omits submarkets without any uncommenced leases over the next eight quarters.


(2)	Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) 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.


(3)	Saltchuk Resources, Inc. is anticipated to commence 94,330 square feet on November 27, 2017.


(4)	This lease is anticipated to commence on October 1, 2017.


(5)	ZipRecruiter, Inc. is anticipated to commence on February 1, 2018.


(6)	Netflix, Inc. is anticipated to commence 52,626 square feet on August 1, 2018 and 39,327 square feet April 1, 2019.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

QUARTERLY BACKFILLS—NEXT EIGHT QUARTERS⁽¹⁾

	Q4 2017			Q1 2018			Q2 2018			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019
Location	SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾		SF	Starting Rent/sf ⁽²⁾
Greater Seattle, Washington
Pioneer Square	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	49,799	$	43.00	—	$	—	—	$	—
Subtotal	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—	49,799	$	43.00	—	$	—	—	$	—
San Francisco Bay Area, California
San Francisco	—	$	—	8,091	$	77.00	15,209	$	36.00	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Redwood Shores	—	—		7,673	54.00		35,006	60.60		—	—		—	—		—	—		—	—		—	—
Santa Clara	5,946	45.83		—	—		3,771	47.40		—	—		—	—		—	—		—	—		—	—
North San Jose	1,965	37.20		—	—		19,027	39.36		—	—		8,652	39.36		—	—		—	—		—	—
Subtotal	7,911	$	43.69	15,764	$	65.80	73,013	$	49.26	—	$	—	8,652	$	39.36	—	$	—	—	$	—	—	$	—
Los Angeles, California
West Los Angeles	—	$	—	—	$	—	4,791	$	58.20	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	—	$	—	—	$	—	4,791	$	58.20	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Total Backfills	7,911	$	43.69	15,764	$	65.80	77,804	$	49.81	—	$	—	8,652	$	39.36	49,799	$	43.00	—	$	—	—	$	—

Total Uncommenced & Backfills	370,693	$	56.99	120,586	$	50.67	97,420	$	47.53	52,626	$	57.60	8,652	$	39.36	78,086	$	40.46	39,327	$	57.60	—	$	—

_____________________


(1)	Consists of backfill leases, defined as new leases with respect to occupied space, executed on or prior to September 30, 2017 but with commencement dates after September 30, 2017 and within the next eight quarters. This table omits submarkets without any backfill leases over the next eight quarters.


(2)	Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) 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.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

QUARTERLY OFFICE LEASE EXPIRATIONS—NEXT EIGHT QUARTERS⁽¹⁾

	Q4 2017⁽²⁾					Q1 2018					Q2 2018				Q3 2018				Q4 2018					Q1 2019						Q2 2019						Q3 2019
Location	Expiring SF⁽³⁾		Rent/sf⁽⁴⁾			Expiring SF⁽³⁾		Rent/sf⁽⁴⁾			Expiring SF⁽³⁾		Rent/sf⁽⁴⁾		Expiring SF⁽³⁾		Rent/sf⁽⁴⁾		Expiring SF⁽³⁾		Rent/sf⁽⁴⁾			Expiring SF⁽³⁾		Rent/sf⁽⁴⁾				Expiring SF⁽³⁾		Rent/sf⁽⁴⁾				Expiring SF⁽³⁾		Rent/sf⁽⁴⁾
Greater Seattle, Washington
Lynnwood	—		$	—		2,343		$	20.76		1,756		$	20.50	—		$	—	21,155		$	28.27		—		$	—			—		$	—			—		$	—
Pioneer Square	—		—			3,260		39.50			2,624		30.80		—		—		10,050		34.50			145,279		28.64		⁽¹¹	⁾	—		—				6,452		32.00
Subtotal	—		$	—		5,603		$	31.66		4,380		$	26.67	—		$	—	31,205		$	30.28		145,279		$	28.64			—		$	—			6,452		$	32.00
San Francisco Bay Area, California
Foster City	8,454		$	13.39		11,982		$	42.90		14,745		$	56.11	2,366		$	39.85	63,998		$	40.20		10,939		$	59.82			8,009		$	63.24			—		$	—
Palo Alto	92,726		67.43			82,656		86.75			12,637		95.60		26,411		32.19		21,278		48.89			21,533		58.03				93,921		73.09				45,457		74.28
Redwood Shores	34,380		52.21			106,746		42.93		⁽⁸⁾	60,628		54.04		37,099		60.20		40,412		56.98			43,473		53.58				153,030		59.71		⁽¹²	⁾	17,340		59.98
San Francisco	104,179		22.69		⁽⁵⁾	10,693		57.29			27,855		73.78		10,164		48.55		143,005		23.68		⁽⁹⁾	77,249		64.86				74,127		44.57				1,027		48.14
North San Jose	107,570		30.66		⁽⁶⁾	64,962		30.45			73,356		34.25		83,322		33.43		114,915		34.23		⁽¹⁰⁾	97,750		33.26				56,031		36.46				56,220		35.17
San Mateo	9,161		37.80			37,642		42.12			12,612		53.76		9,164		43.51		3,806		55.00			13,207		55.13				27,340		51.94				41,932		52.05
Milpitas	471,580		33.60		⁽⁷⁾	—		—			—		—		—		—		—		—			—		—				—		—				—		—
Santa Clara	18,652		38.40			4,876		44.78			19,691		40.31		1,098		51.14		12,384		48.25			4,710		46.35				7,862		42.25				2,453		49.94
Subtotal	846,702		$	36.29		319,557		$	52.14		221,524		$	51.24	169,624		$	40.75	399,798		$	35.12		268,861		$	49.99			420,320		$	56.17			164,429		$	53.20
Los Angeles, California
Burbank	—		$	—		—		$	—		—		$	—	—		$	—	9,005		$	45.00		—		$	—			—		$	—			31,588		$	43.32
Hollywood	—		—			10,000		50.50			—		—		87,272		43.68		—		—			7,559		92.20				—		—				3,378		52.20
West Los Angeles	13,452		42.53			16,363		42.67			5,878		50.54		—		—		13,427		46.64			2,749		55.21				29,794		43.42				6,699		43.68
Subtotal	13,452		$	42.53		26,363		$	45.64		5,878		$	50.54	87,272		$	43.68	22,432		$	45.98		10,308		$	82.33			29,794		$	43.42			41,665		$	44.10
TOTAL	860,154		$	36.39		351,523		$	51.32		231,782		$	50.76	256,896		$	41.74	453,435		$	35.33		424,448		$	43.47			450,114		$	55.32			212,546		$	50.78
Expirations as % of In-Service Portfolio	6.8	%				2.8	%				1.8	%			2.0	%			3.6	%				3.3	%					3.5	%					1.7	%

_____________________


(1)	This does not reflect 11,983 square feet that expired on September 30, 2017. This table omits submarkets without any expirations over the next eight quarters.


(2)	Q4 2017 expiring square footage does not include 85,753 square feet of month-to-month leases.


(3)	Includes leases that expire on the last day of the quarter.


(4)	Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease expiration date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements.


(5)	Total expiring square footage consists of: (i) Bank of America at 1455 Market Street for 96,567 square feet and (ii) GSA at 901 Market Street for 7,612 square feet.


(6)	Top three expiring tenants by square footage: (i) Haynes and Boone, LLP at Gateway for 23,233 square feet; (ii) MegaChips Technology at Gateway for 23,146 square feet; and (iii) Murata Electronics at Metro Plaza for 18,782 square feet.


(7)	Total expiring square footage consists of Cisco Systems, Inc. at Campus Center for 471,580 square feet.


(8)	Top three expiring tenants by square footage: (i) Verity Business Services at Towers at Shore Center for 50,015 square feet; (ii) LiveOps, Inc. at 555 Twin Dolphin for 42,201 square feet; and (iii) Hayes Scott Bonino Ellingson McLay, LLP at Towers at Shore Center for 9,590 square feet.


(9)	Top three expiring tenants by square footage: (i) Burlington Coat Factory at 875 Howard Street for 94,505 square feet; (ii) Anaplan, Inc. at 625 Second Street for 38,775 square feet; and (iii) DiscoverReady, LLC at 625 Second Street for 6,041 square feet.


(10)	Top three expiring tenants by square footage: (i) Quantum Corporation at Concourse for 19,294 square feet; (ii) Pixelworks, Inc. at Concourse for 19,294 square feet; and (iii) Calypto Design Systems, Inc. at Gateway for 10,942 square feet.


(11)	Total expiring square footage consists of: (i) Capital One at 83 King Street for 133,148 square feet; (ii) Maveron LLC at Merrill Place for 6,136 square feet; and (iii) Cowgirls, Inc. at Merrill Place for 5,995 square feet.


(12)	Top three expiring tenants by square footage: (i) Mark Logic Corp at Skyway Landing for 40,268 square feet; (ii) Teachers Insurance & Annuity Association at Towers at Shore Center for 25,549 square feet; and (iii) Alarm.com, Inc. at 555 Twin Dolphin Plaza for 16,027 square feet.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

OFFICE LEASE EXPIRATIONS—ANNUAL



Year of Lease Expiration	Expiring Leases	Square Footage of Expiring Leases	Percentage of Office Portfolio Square Feet		Annualized Base Rent⁽¹⁾		Percentage of Office Portfolio Annualized Base Rent		Annualized Base Rent Per Square Foot⁽²⁾		Annualized Base Rent Per Square Foot at Expiration⁽³⁾
Vacant		1,427,507	10.3	%
2017	54	872,137	6.3		$	30,267,751	5.6	%	$	34.71	$	36.44
2018	170	1,293,636	9.3		54,142,626		9.9		41.85		43.71
2019	159	1,834,891	13.3		80,903,656		14.7		44.09		46.18
2020	122	1,138,209	8.2		53,302,929		9.7		46.83		50.68
2021	90	1,671,987	12.1		68,812,907		12.5		41.16		45.29
2022	82	1,162,389	8.4		51,344,814		9.3		44.17		52.21
2023	31	823,380	6.0		31,628,448		5.7		38.41		44.89
2024	37	630,656	4.6		30,664,721		5.6		48.62		63.87
2025	13	679,822	4.9		33,790,932		6.1		49.71		60.87
2026	14	561,905	4.1		31,040,896		5.6		55.24		71.52
Thereafter	23	968,565	7.0		51,308,768		9.3		52.97		70.60
Building management use	23	156,121	1.1		—		—		—		—
Signed leases not commenced⁽⁴⁾	33	607,460	4.4		32,921,824		6.0		54.20		69.11
Total/Weighted Average⁽⁵⁾	851	13,828,665	100.0	%	$	550,130,272	100.0	%	$	44.36	$	51.31

_____________________


(1)	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 by multiplying (i) base rental payments (defined as cash base rents (before abatements)) as of September 30, 2017, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.


(2)	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)) under commenced leases, divided by (ii) square footage under commenced leases as of September 30, 2017.


(3)	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)) under commenced leases, divided by (ii) square footage under commenced lease as of September 30, 2017.

(4)

Annualized base rent per leased square foot and annualized base rent per square foot at expiration for signed leases not commenced reflects uncommenced leases for space not occupied as of September 30, 2017 and is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under uncommenced leases for vacant space as of September 30, 2017, divided by (ii) square footage under uncommenced leases as of September 30, 2017.


(5)	Total expiring square footage does not include 85,753 square feet of month-to-month leases.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

FIFTEEN LARGEST OFFICE TENANTS



Tenant	Property	Number of Leases	Number of Properties	Lease Expiration	Total Leased Square Feet	Percent of Rentable Square Feet	Annualized Base Rent⁽¹⁾		Percent of Annualized Base Rent
Google, Inc.⁽²⁾	Various	2	2	Various	305,729	2.2%	$	19,751,784	3.8%
Netflix, Inc.⁽³⁾	ICON	1	1	12/31/2026	325,757	2.3	17,800,735		3.4
Riot Games, Inc.⁽⁴⁾	Various	2	2	Various	286,629	2.1	16,025,899		3.1
Cisco Systems, Inc.⁽⁵⁾	Various	2	2	Various	474,576	3.4	15,946,113		3.1
Uber Technologies, Inc.⁽⁶⁾	1455 Market Street	1	1	2/28/2025	309,811	2.2	15,042,228		2.9
Qualcomm	Skyport Plaza	2	1	7/31/2022	376,817	2.7	13,276,016		2.6
Salesforce.com⁽⁷⁾	Rincon Center	2	1	Various	265,394	1.9	13,117,311		2.5
Square, Inc.	1455 Market Street	1	1	9/27/2023	338,910	2.4	11,761,423		2.3
Stanford⁽⁸⁾	Various	4	3	Various	151,249	1.1	10,582,418		2.0
Warner Bros. Entertainment	Pinnacle II	1	1	12/31/2021	230,000	1.7	9,281,389		1.8
GSA⁽⁹⁾	Various	5	5	Various	202,097	1.5	9,226,673		1.8
Warner Music Group	Pinnacle I	1	1	12/31/2019	195,166	1.4	8,336,840		1.6
NetSuite, Inc.⁽¹⁰⁾	Peninsula Office Park	2	1	Various	166,667	1.2	8,020,100		1.5
EMC Corporation⁽¹¹⁾	Various	3	2	Various	294,756	2.1	7,905,112		1.5
NFL Enterprises⁽¹²⁾	Various	2	2	6/30/2021	167,606	1.2	7,144,336		1.4
TOTAL		31	26		4,091,164	29.4%	$	183,218,377	35.3%

_____________________


(1)	Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of September 30, 2017, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(2)

Google, Inc. is expected to take possession of an additional 166,460 square feet at our Rincon Center property during the fourth quarter of 2017 with an annualized base rent of $12,484,500. Google, Inc. expirations by property and square footage: (i) 207,857 square feet at 3400 Hillview expiring on November 30, 2021 and (ii) 97,872 square feet at Foothill Research Center expiring on February 28, 2025.


(3)	Netflix, Inc. is expected to take possession of an additional 52,626 square feet at CUE during the third quarter of 2018 and 39,327 square feet at CUE during the second quarter of 2019.


(4)	Riot Games, Inc. expirations by property and square footage: (i) 2,592 square feet at Shorebreeze expiring on November 30, 2017 and (ii) 284,037 square feet at Element LA expiring on March 31, 2030. This tenant may elect to exercise their early termination right at Element LA with respect to 284,037 square feet effective March 31, 2025.


(5)	Cisco Systems, Inc. expirations by property and square footage: (i) 471,580 square feet at Campus Center expiring on December 31, 2017 and (ii) 2,996 square feet at Concourse expiring March 31, 2018.


(6)	Uber is expected to take possession of an additional 15,209 square feet at our 1455 Market Street property during the second quarter of 2018.

(7)

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. This tenant may elect to exercise their early termination right with respect to 74,966 square feet between August 1, 2021 and September 30, 2021.

(8)

Stanford Expirations by property and square footage: (i) Board of Trustees Stanford 18,753 square feet at Page Mill Hill expiring February 28, 2019; (ii) Stanford Healthcare 63,201 square feet at Page Mill Center expiring June 30, 2019; (iii) Stanford University 26,080 square feet at Palo Alto Square expiring on December 31, 2019; and (iv) Board of Trustees Stanford 43,215 square feet at Page Mill Center expiring December 31, 2022.

(9)

GSA expirations by property and square footage: (i) 7,612 square feet at 901 Market expiring on October 31, 2017; (ii) 71,729 square feet at 1455 Market Street expiring on February 19, 2019; (iii) 28,993 square feet at Northview Center expiring on April 4, 2020; (iv) 33,582 square feet at Rincon Center expiring May 31, 2020; (v) 41,793 square feet at 901 Market Street expiring on July 31, 2021; and (vi) 18,388 square feet at Concourse expiring on May 7, 2024. This tenant may elect to exercise their early termination right at 901 Market with respect to 41,793 square feet any time after November 1, 2017 with 120 days prior written notice.


(10)	NetSuite, Inc. expirations by square footage: (i) 37,597 square feet expiring on August 31, 2019; (ii) 129,070 square feet expiring on May 31, 2022.


(11)	EMC expirations by property and square footage: (i) 66,510 square feet at 875 Howard Street expiring on June 30, 2019; (ii) 185,292 square feet at 505 First Avenue expiring on October 18, 2021; and (iii) 42,954 square feet at 505 First Avenue expiring on December 31, 2023.


(12)	NFL Enterprises by property and square footage: (i) 157,687 square feet at 10950 Washington and (ii) 9,919 square feet at 10900 Washington. This tenant may elect to exercise their early termination right with respect to 167,606 square feet effective June 30, 2020.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO DIVERSIFICATION



Industry	Total Square Feet⁽¹⁾	Annualized Rent as of Percent of Total
Technology	4,870,055	40.0	%
Media & Entertainment	1,923,595	17.9
Business Services	998,675	7.8
Financial Services	935,940	7.1
Legal	773,932	9.1
Other	600,998	4.4
Retail	583,393	3.5
Insurance	301,905	2.4
Government	208,754	1.5
Healthcare	197,750	2.1
Real Estate	192,363	1.6
Educational	168,489	1.8
Advertising	123,602	0.8
TOTAL	11,879,451	100.0	%

_____________________


(1)	Does not include signed leases not commenced.

Hudson Pacific Properties, Inc.

Third Quarter 2017 Supplemental Operating and Financial Information

DEFINITIONS

Funds From Operations (“FFO”): Funds From Operations before non-controlling interest (“FFO”) is a 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 extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. The calculation of FFO includes the 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 cost 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.

Adjusted Funds From Operations (“AFFO”): Adjusted Funds From Operations (“AFFO”) is a 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 amortization of deferred financing costs, and subtracting recurring capital expenditures, 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 straight-line rents, amortization of lease buy-out costs, and amortization of above/below market lease intangible assets and liabilities and amortization of loan discounts/premium. 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.

Net Operating Income (“NOI”): We evaluate performance based upon property net operating income (“NOI”) from continuing operations. NOI is not a measure of operating results or cash flows from operating activities 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 net operating income as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, acquisition-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 on a GAAP basis, 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.

Hudson Pacific Properties, Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 2, 2017

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Hudson Pacific Properties, Inc. Reports