Hudson Pacific Properties, Inc. (NYSE: HPP) (the
"Company," "Hudson Pacific," or "HPP"), a unique provider of
end-to-end real estate solutions for dynamic tech and media
tenants, today announced financial results for the third quarter
2023.
"Our leasing activity accelerated once again in the third
quarter and while the timeline for tenant decision making remains
extended, we've seen a continued uptick in tours and inquiries at
our assets into the fourth quarter as return-to-office mandates
expand," stated Victor Coleman, Chairman and CEO. "While the actors
strike continues, we were pleased to see the writers strike
resolved, and are ready to help our studio tenants efficiently ramp
their production efforts utilizing our growing full-service
platform. We also remain vigilant in controlling expenses and
continue to focus on deleveraging and further fortifying our
balance sheet while proactively managing our debt maturities. We
believe our emphasis on ‘leasing and more leasing’ will allow our
evolving portfolio to drive improved performance as we move into
next year and beyond."
Financial Results Compared to Third Quarter 2022
- Total revenue of $231.4 million compared to $260.4 million,
primarily due to the sales of 6922 Hollywood, Skyway Landing and
Northview Center, previously communicated tenant move-outs at
Skyport Plaza and 10900-10950 Washington, as well as a reduction in
studio service and other revenue due to the related union
strikes
- Net loss attributable to common stockholders of $37.6 million,
or $0.27 per diluted share, compared to net loss of $17.3 million,
or $0.12 per diluted share, due to the aforementioned asset sales
and tenant move-outs, higher operating expenses associated with the
Quixote acquisition and higher interest expense
- FFO, excluding specified items, of $26.1 million, or $0.18 per
diluted share, compared to $74.1 million, or $0.52 per diluted
share. There were no specified items for the third quarter 2023.
Prior year specified items consisted of transaction-related
expenses of $9.3 million, or $0.07 per diluted share, and
prior-period property tax expense of $0.4 million, or $0.00 per
diluted share
- FFO of $26.1 million, or $0.18 per diluted share, compared to
$64.4 million, or $0.45 per diluted share
- AFFO of $28.1 million, or $0.20 per diluted share, compared to
$55.8 million, or $0.39 per diluted share
- Same-store cash NOI of $126.7 million, up 0.4% compared to
$126.2 million, mostly attributable to significant office lease
commencements at One Westside and Harlow, which drove same-store
office NOI growth of 3.5%
Leasing
- Executed 53 new and renewal leases totaling 519,167 square
feet, including significant tenant renewals:
- 140,000-square-foot renewal at Met Park North
- 75,000-square-foot renewal of Bank of Montreal (BMO) at Bentall
Centre
- 50,000-square-foot renewal of Poshmark at Towers at Shore
Center
- GAAP and cash rents increased 9.4% and 8.7%, respectively, from
prior levels, primarily due to the strength of leasing in the
Seattle and Vancouver markets
- In-service office portfolio ended the quarter at 81.3% occupied
and 83.1% leased, with the decrease primarily attributable to
known-vacate Block's 469,000-square-foot lease expiration at 1455
Market, as well as the sales of 3401 Exposition and 604
Arizona
- On average over the trailing 12 months, the in-service studio
portfolio was 83.5% leased, and the related 35 stages were 89.9%
leased, with the sequential change attributable to a single tenant
vacating 6 stages at Sunset Las Palmas due to the strike
Transactions
- Sold 3401 Exposition office property in Los Angeles, California
for $40.0 million before closing adjustments
- Sold 604 Arizona office property in Santa Monica, California
for $32.5 million before closing adjustments
- Entered into a joint venture with Vornado and Blackstone to own
the leasehold interest for Pier 94 in Manhattan, New York, and
develop and operate a 6-stage, 232,000-square-foot purpose-built
Sunset Studios facility, representing an expected $38.5 million
total capital requirement for Hudson Pacific
Development
- Commenced construction on Sunset Pier 94 Studios with delivery
anticipated by year-end 2025
Balance Sheet as of September 30, 2023
- $555.0 million of total liquidity comprised of $75.0 million of
unrestricted cash and cash equivalents and $480.0 million of
undrawn capacity under the unsecured revolving credit facility
- $90.0 million, $22.3 million and $183.1 million of undrawn
capacity under construction loans secured by One Westside/Westside
Two, Sunset Glenoaks Studios and Sunset Pier 94 Studios,
respectively
- HPP's share of net debt to HPP's share of undepreciated book
value was 38.6% with 77.1% of debt fixed or capped and no material
maturities until the loan secured by One Westside, which is 100%
leased to Google through 2036, matures in December 2024
- Repaid $50.0 million of Series E notes, and applied net
proceeds from the sales of 3401 Exposition and 604 Arizona to repay
amounts outstanding on the unsecured revolving credit facility
Dividend
- The Company's Board of Directors suspended payment of a
quarterly dividend on its common stock and declared and paid a
dividend on its 4.750% Series C cumulative preferred stock of
$0.296875 per share
ESG Leadership
- Subsequent to the quarter, earned top rankings in the 2023
GRESB Real Estate Assessment for sustainability accomplishments,
marking the Company's third consecutive year as a Regional Sector
Leader in the Office, Americas peer group, and fifth consecutive
year earning a Green Star designation as well as the highest 5-star
rating
2023 Outlook
Due to continued uncertainty around the duration of the
studio-related union strikes, the Company will continue to provide
certain assumptions relevant to its full-year 2023 office outlook,
but has not reinstated its outlook for 2023 full-year FFO or
studio-related assumptions. Current assumptions reflect
management’s view of current and future market conditions,
including assumptions with respect to rental rates, occupancy
levels and the earnings impact of events referenced in this press
release and in earlier announcements. It otherwise excludes any
impact from new acquisitions, dispositions, debt financings,
amendments or repayments, recapitalizations, capital markets
activity or similar matters. There can be no assurance that actual
results will not differ materially from these estimates.
Unaudited, in thousands, except share
data
Full Year 2023
Assumptions
Metric
Low
High
Growth in office same-store cash
NOI(1)(2)
1.00%
2.00%
GAAP non-cash revenue (straight-line rent
and above/below-market rents)(3)
$13,500
$23,500
GAAP non-cash expense (straight-line rent
expense and above/below-market ground rent)
$(7,100)
$(9,100)
General and administrative expenses(4)
$(70,000)
$(76,000)
Interest expense(5)
$(212,000)
$(222,000)
Non-real estate depreciation and
amortization
$(34,000)
$(36,000)
FFO from unconsolidated joint ventures
$500
$2,500
FFO attributable to non-controlling
interests
$(42,000)
$(46,000)
FFO attributable to preferred
units/shares
$(21,000)
$(21,000)
Weighted average common stock/units
outstanding—diluted(6)
143,000,000
144,000,000
(1)
Same-store office for the full year 2023 is defined as the 41
office properties owned and included in the Company's stabilized
portfolio as of January 1, 2022, and anticipated to still be owned
and included in the stabilized portfolio through December 31, 2023.
(2)
Please see non-GAAP information below for
definition of cash NOI.
(3)
Includes non-cash straight-line rent
associated with the office properties.
(4)
Includes non-cash compensation expense,
which the Company estimates at $22,000 in 2023.
(5)
Includes non-cash interest expense, which
the Company estimates at $13,000 in 2023.
(6)
Diluted shares represent ownership in the
Company through shares of common stock, OP Units and other
convertible or exchangeable instruments. The weighted average fully
diluted common stock/units outstanding for 2023 includes an
estimate for the dilution impact of stock grants to the Company's
executives under its long-term incentive programs. This estimate is
based on the projected award potential of such programs as of the
end of the most recently completed quarter, as calculated in
accordance with the ASC 260, Earnings Per Share.
The Company does not provide a reconciliation for non-GAAP
estimates on a forward-looking basis, where it is unable to provide
a meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
timing and/or amount of various items that would impact net income
attributable to common stockholders per diluted share, which is the
most directly comparable forward-looking GAAP financial measure.
This includes, for example, acquisition costs and other non-core
items that have not yet occurred, are out of the Company's control
and/or cannot be reasonably predicted. For the same reasons, the
Company is unable to address the probable significance of the
unavailable information. Forward-looking non-GAAP financial
measures provided without the most directly comparable GAAP
financial measures may vary materially from the corresponding GAAP
financial measures.
Supplemental Information
Supplemental financial information regarding Hudson Pacific's
third quarter 2023 results may be found on the Investors section of
the Company's website at HudsonPacificProperties.com. This
supplemental information provides additional detail on items such
as property occupancy, financial performance by property and debt
maturity schedules.
Conference Call
The Company will hold a conference call to discuss third quarter
2023 financial results at 9:00 a.m. PT / 12:00 p.m. ET on November
2, 2023. Please dial (833) 470-1428 and enter passcode 214013 to
access the call. International callers should dial (404) 975-4839
and enter the same passcode. A live, listen-only webcast and replay
can be accessed via the Investors section of the Company's website
at HudsonPacificProperties.com.
About Hudson Pacific Properties
Hudson Pacific Properties (NYSE: HPP) is a real estate
investment trust serving dynamic tech and media tenants in global
epicenters for these synergistic, converging and secular growth
industries. Hudson Pacific’s unique and high-barrier tech and media
focus leverages a full-service, end-to-end value creation platform
forged through deep strategic relationships and niche expertise
across identifying, acquiring, transforming and developing
properties into world-class amenitized, collaborative and
sustainable office and studio space. For more information visit
HudsonPacificProperties.com.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as "may," "will," "should,"
"expects," "intends," "plans," "anticipates," "believes,"
"estimates," "predicts," or "potential" or the negative of these
words and phrases or similar words or phrases that are predictions
of or indicate future events, or trends and that do not relate
solely to historical matters. Forward-looking statements involve
known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond the Company's control,
which may cause actual results to differ significantly from those
expressed in any forward-looking statement. All forward-looking
statements reflect the Company's good faith beliefs, assumptions
and expectations, but they are not guarantees of future
performance. Furthermore, the Company disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes. For a further
discussion of these and other factors that could cause the
Company's future results to differ materially from any
forward-looking statements, see the section entitled "Risk Factors"
in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission, or SEC, and other risks
described in documents subsequently filed by the Company from time
to time with the SEC.
Consolidated Balance Sheets
In thousands, except share data
9/30/23
12/31/22
(Unaudited)
ASSETS
Investment in real estate, at cost
$
8,831,914
$
8,716,572
Accumulated depreciation and
amortization
(1,735,715
)
(1,541,271
)
Investment in real estate, net
7,096,199
7,175,301
Non-real estate property, plant and
equipment, net
115,903
130,289
Cash and cash equivalents
75,040
255,761
Restricted cash
19,054
29,970
Accounts receivable, net
19,330
16,820
Straight-line rent receivables, net
290,938
279,910
Deferred leasing costs and intangible
assets, net
359,870
393,842
Operating lease right-of-use assets
391,177
401,051
Prepaid expenses and other assets, net
119,494
98,837
Investment in unconsolidated real estate
entities
236,248
180,572
Goodwill
263,549
263,549
Assets associated with real estate held
for sale
—
93,238
TOTAL ASSETS
$
8,986,802
$
9,319,140
LIABILITIES AND EQUITY
Liabilities
Unsecured and secured debt, net
$
4,417,020
$
4,585,862
Joint venture partner debt
66,136
66,136
Accounts payable, accrued liabilities and
other
267,426
264,098
Operating lease liabilities
393,773
399,801
Intangible liabilities, net
29,247
34,091
Security deposits, prepaid rent and
other
86,980
83,797
Liabilities associated with real estate
held for sale
—
665
Total liabilities
5,260,582
5,434,450
Redeemable preferred units of the
operating partnership
9,815
9,815
Redeemable non-controlling interest in
consolidated real estate entities
115,580
125,044
Equity
HPP stockholders' equity:
4.750% Series C cumulative redeemable
preferred stock, $0.01 par value, $25.00 per share liquidation
preference, 18,400,000 authorized; 17,000,000 shares outstanding at
September 30, 2023 and December 31, 2022
425,000
425,000
Common stock, $0.01 par value, 481,600,000
authorized, 140,937,702 shares and 141,054,478 shares outstanding
at September 30, 2023 and December 31, 2022, respectively
1,403
1,409
Additional paid-in capital
2,748,309
2,889,967
Accumulated other comprehensive income
(loss)
4,178
(11,272
)
Total HPP stockholders' equity
3,178,890
3,305,104
Non-controlling interest—members in
consolidated real estate entities
345,058
377,756
Non-controlling interest—units in the
operating partnership
76,877
66,971
Total equity
3,600,825
3,749,831
TOTAL LIABILITIES AND EQUITY
$
8,986,802
$
9,319,140
Consolidated Statements of
Operations
Unaudited, in thousands, except per share
data
Three Months Ended
Nine Months Ended
9/30/23
9/30/22
9/30/23
9/30/22
REVENUES
Office
Rental revenues
$
199,633
$
208,779
$
605,776
$
626,807
Service and other revenues
3,954
4,712
11,735
14,328
Total office revenues
203,587
213,491
617,511
641,135
Studio
Rental revenues
13,482
15,305
46,109
42,137
Service and other revenues
14,374
31,558
65,254
73,025
Total studio revenues
27,856
46,863
111,363
115,162
Total revenues
231,443
260,354
728,874
756,297
OPERATING EXPENSES
Office operating expenses
80,521
78,340
231,342
230,529
Studio operating expenses
31,655
26,688
103,578
66,357
General and administrative
17,512
19,795
55,177
62,178
Depreciation and amortization
98,580
93,070
294,654
276,701
Total operating expenses
228,268
217,893
684,751
635,765
OTHER INCOME (EXPENSES)
(Loss) income from unconsolidated real
estate entities
(759
)
(352
)
(2,219
)
1,731
Fee income
340
911
5,026
3,122
Interest expense
(53,581
)
(37,261
)
(162,036
)
(101,816
)
Interest income
800
196
1,407
2,026
Management services reimbursement
income—unconsolidated real estate entities
1,015
983
3,138
3,159
Management services expense—unconsolidated
real estate entities
(1,015
)
(983
)
(3,138
)
(3,159
)
Transaction-related expenses
—
(9,331
)
1,344
(10,713
)
Unrealized loss on non-real estate
investments
(2,265
)
(894
)
(2,269
)
(1,062
)
Gain on extinguishment of debt
—
—
10,000
—
(Gain) loss on sale of real estate
16,108
(180
)
23,154
(180
)
Impairment loss
—
(4,795
)
—
(28,548
)
Other income
5
1,147
139
1,138
Total other expenses
(39,352
)
(50,559
)
(125,454
)
(134,302
)
Loss before income tax benefit
(provision)
(36,177
)
(8,098
)
(81,331
)
(13,770
)
Income tax benefit (provision)
425
1,306
(715
)
2,909
Net loss
(35,752
)
(6,792
)
(82,046
)
(10,861
)
Net income attributable to Series A
preferred units
(153
)
(153
)
(459
)
(459
)
Net income attributable to Series C
preferred shares
(5,047
)
(5,047
)
(15,141
)
(15,384
)
Net income attributable to participating
securities
—
(300
)
(850
)
(894
)
Net loss (income) attributable to
non-controlling interest in consolidated real estate entities
1,752
(6,256
)
375
(21,898
)
Net loss attributable to redeemable
non-controlling interest in consolidated real estate entities
931
1,037
2,333
4,433
Net loss attributable to common units in
the operating partnership
672
225
1,600
548
NET LOSS ATTRIBUTABLE TO COMMON
STOCKHOLDERS
$
(37,597
)
$
(17,286
)
$
(94,188
)
$
(44,515
)
BASIC AND DILUTED PER SHARE
AMOUNTS
Net loss attributable to common
stockholders—basic
$
(0.27
)
$
(0.12
)
$
(0.67
)
$
(0.31
)
Net loss attributable to common
stockholders—diluted
$
(0.27
)
$
(0.12
)
$
(0.67
)
$
(0.31
)
Weighted average shares of common stock
outstanding—basic
140,938
141,117
140,957
144,678
Weighted average shares of common stock
outstanding—diluted
140,938
141,117
140,957
144,678
Funds from Operations(1)
Unaudited, in thousands, except per share
data
Three Months Ended
Nine Months Ended
9/30/23
9/30/22
9/30/23
9/30/22
RECONCILIATION OF NET LOSS TO FUNDS
FROM OPERATIONS (“FFO”)(1):
Net loss
$
(35,752
)
$
(6,792
)
$
(82,046
)
$
(10,861
)
Adjustments:
Depreciation and
amortization—consolidated
98,580
93,070
294,654
276,701
Depreciation and amortization—non-real
estate assets
(8,300
)
(5,541
)
(25,524
)
(14,458
)
Depreciation and amortization—HPP's share
from unconsolidated real estate entities(2)
1,165
1,278
3,623
3,967
(Gain) loss on sale of real estate
(16,108
)
180
(23,154
)
180
Impairment loss—real estate assets
—
4,795
—
20,048
Unrealized loss on non-real estate
investments
2,265
894
2,269
1,062
FFO attributable to non-controlling
interests
(10,509
)
(18,261
)
(37,371
)
(56,934
)
FFO attributable to preferred shares and
units
(5,200
)
(5,200
)
(15,600
)
(15,843
)
FFO to common stock/unit
holders
26,141
64,423
116,851
203,862
Specified items impacting FFO:
Transaction-related expenses
—
9,331
(1,344
)
10,713
Impairment loss—trade name
—
—
—
8,500
Prior period net property tax
adjustment—Company’s share
—
366
(1,469
)
786
Deferred tax asset valuation allowance
—
—
3,516
—
One-time gain on debt extinguishment
—
—
(10,000
)
—
One-time tax impact of gain on debt
extinguishment
—
—
2,751
—
FFO (excluding specified items) to
common stock/unit holders
$
26,141
$
74,120
$
110,305
$
223,861
Weighted average common stock/units
outstanding—diluted
143,483
143,158
143,519
147,068
FFO per common stock/unit—diluted
$
0.18
$
0.45
$
0.81
$
1.39
FFO (excluding specified items) per common
stock/unit—diluted
$
0.18
$
0.52
$
0.77
$
1.52
(1)
We calculate Funds from Operations ("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 HPP’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
HPP’s share of amortization of deferred revenue related to
tenant-funded tenant improvements and excludes the depreciation of
the related tenant improvement assets.
FFO is a non-GAAP financial measure we
believe 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.
(2)
HPP's share is a Non-GAAP financial
measure calculated as the measure on a consolidated basis, in
accordance with GAAP, plus our Operating Partnership’s share of the
measure from our unconsolidated joint ventures (calculated based
upon the Operating Partnership’s percentage ownership interest),
minus our partners’ share of the measure from our consolidated
joint ventures (calculated based upon the partners’ percentage
ownership interests). We believe that presenting HPP’s share of
these measures provides useful information to investors regarding
the Company’s financial condition and/or results of operations
because we have several significant joint ventures, and in some
cases, we exercise significant influence over, but do not control,
the joint venture. In such instances, GAAP requires us to account
for the joint venture entity using the equity method of accounting,
which we do not consolidate for financial reporting purposes. In
other cases, GAAP requires us to consolidate the venture even
though our partner(s) own(s) a significant percentage interest.
Adjusted Funds from
Operations(1)
Unaudited, in thousands, except per share
data
Three Months Ended
Nine Months Ended
9/30/23
9/30/22
9/30/23
9/30/22
FFO (excluding specified items)
$
26,141
$
74,120
$
110,305
$
223,861
Adjustments:
GAAP non-cash revenue (straight-line rent
and above/below-market rents)
2,470
(4,748
)
(9,326
)
(26,508
)
GAAP non-cash expense (straight-line rent
expense and above/below-market ground rent)
1,919
1,457
5,556
3,393
Non-real estate depreciation and
amortization
8,300
5,541
25,524
14,458
Non-cash interest expense
3,121
2,478
12,822
7,288
Non-cash compensation expense
5,519
6,494
16,904
17,816
Recurring capital expenditures, tenant
improvements and lease commissions
(19,359
)
(29,574
)
(67,483
)
(65,459
)
AFFO
$
28,111
$
55,768
$
94,302
$
174,849
(1)
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
(excluding specified items) HPP's share of non-cash compensation
expense and amortization of deferred financing costs, and
subtracting recurring capital expenditures related to HPP'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 HPP’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.
Net Operating Income(1)
Unaudited, in thousands
Three Months Ended
9/30/23
9/30/22
Net loss
$
(35,752
)
$
(6,792
)
Adjustments:
Loss from unconsolidated real estate
entities
759
352
Fee income
(340
)
(911
)
Interest expense
53,581
37,261
Interest income
(800
)
(196
)
Management services reimbursement
income—unconsolidated real estate entities
(1,015
)
(983
)
Management services expense—unconsolidated
real estate entities
1,015
983
Transaction-related expenses
—
9,331
Unrealized loss on non-real estate
investment
2,265
894
(Gain) loss on sale of real estate
(16,108
)
180
Impairment loss
—
4,795
Other income
(5
)
(1,147
)
Income tax benefit
(425
)
(1,306
)
General and administrative
17,512
19,795
Depreciation and amortization
98,580
93,070
NOI
$
119,267
$
155,326
NOI Detail
Same-store office cash revenues
194,847
186,876
Straight-line rent
(2,872
)
6,614
Amortization of above/below-market leases,
net
1,495
1,645
Amortization of lease incentive costs
(266
)
(330
)
Same-store office revenues
193,204
194,805
Same-store studios cash revenues
14,053
21,834
Straight-line rent
316
440
Amortization of lease incentive costs
(9
)
(9
)
Same-store studio revenues
14,360
22,265
Same-store revenues
207,564
217,070
Same-store office cash expenses
73,349
69,453
Straight-line rent
376
402
Non-cash compensation expense
35
25
Amortization of above/below-market ground
leases, net
676
675
Same-store office expenses
74,436
70,555
Same-store studio cash expenses
8,879
13,080
Non-cash compensation expense
114
70
Same-store studio expenses
8,993
13,150
Same-store expenses
83,429
83,705
Same-store NOI
124,135
133,365
Non-same-store NOI
(4,868
)
21,961
NOI
$
119,267
$
155,326
(1)
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 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
(rental revenues, other property-related revenue, tenant recoveries
and other operating revenues), less property-level operating
expenses (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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101970691/en/
Investor Contact Laura Campbell Executive Vice President,
Investor Relations & Marketing (310) 622-1702
lcampbell@hudsonppi.com Media Contact Laura Murray Senior
Director, Communications (310) 622-1781 lmurray@hudsonppi.com
Hudson Pacific Properties (NYSE:HPP)
Historical Stock Chart
From Apr 2024 to May 2024
Hudson Pacific Properties (NYSE:HPP)
Historical Stock Chart
From May 2023 to May 2024