Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 15, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-34789 | ||
Entity Registrant Name | Hudson Pacific Properties, Inc. | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Central Index Key | 0001482512 | ||
Entity Tax Identification Number | 27-1430478 | ||
Entity Address, Address Line One | 11601 Wilshire Blvd., Ninth Floor | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90025 | ||
City Area Code | 310 | ||
Local Phone Number | 445-5700 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | HPP | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 5,020 | ||
Entity Common Stock, Shares Outstanding | 154,709,912 | ||
Documents Incorporated by Reference | Portions of the proxy statement for the registrant’s 2020 Annual Meeting of Stockholders to be held May 20, 2020 are incorporated by reference in Part III of this Annual Report on Form 10-K. The proxy statement will be filed by the registrant with the United States Securities and Exchange Commission, or the SEC, not later than 120 days after the end of the registrant’s fiscal year. | ||
Hudson Pacific Partners, L.P. | |||
Entity Information [Line Items] | |||
Entity File Number | 333-202799-01 | ||
Entity Registrant Name | Hudson Pacific Properties, L.P. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Central Index Key | 0001496264 | ||
Entity Tax Identification Number | 80-0579682 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment in real estate, at cost | $ 7,269,128 | $ 7,059,537 |
Accumulated depreciation and amortization | (898,279) | (695,631) |
Investment in real estate, net | 6,370,849 | 6,363,906 |
Cash and cash equivalents | 46,224 | 53,740 |
Restricted cash | 12,034 | 14,451 |
Accounts receivable, net | 13,007 | 14,004 |
Straight-line rent receivables, net | 195,328 | 142,369 |
Deferred leasing costs and lease intangible assets, net | 285,448 | 279,896 |
U.S. Government securities | 140,749 | 146,880 |
Operating lease right-of-use asset | 269,029 | |
Prepaid expenses and other assets, net | 68,974 | 55,633 |
Investment in unconsolidated real estate entity | 64,926 | 0 |
TOTAL ASSETS | 7,466,568 | 7,070,879 |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 212,673 | 175,300 |
Operating lease liability | 272,701 | |
Lease intangible liabilities, net | 31,493 | 45,612 |
Security deposits and prepaid rent | 86,188 | 68,687 |
TOTAL LIABILITIES | 3,622,131 | 3,117,793 |
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 125,260 | 113,141 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Common stock, $0.01 par value, 490,000,000 authorized, 154,691,052 and 154,371,538 shares outstanding at December 31, 2019 and 2018, respectively | 1,546 | 1,543 |
Additional paid-in capital | 3,415,808 | 3,524,502 |
Accumulated other comprehensive income | (561) | 17,501 |
Total Hudson Pacific Properties, Inc. stockholders’ equity | 3,416,793 | 3,543,546 |
TOTAL EQUITY | 3,709,362 | 3,830,130 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Total Liabilities and Equity/Capital | $ 7,466,568 | $ 7,070,879 |
Company-owned common units in the operating partnership | 154,691,052 | 154,371,538 |
Unsecured and secured debt | ||
LIABILITIES | ||
Notes payable, net | $ 2,817,910 | $ 2,623,835 |
In-substance defeased debt | ||
LIABILITIES | ||
Notes payable, net | 135,030 | 138,223 |
Joint venture partner debt | ||
LIABILITIES | ||
Notes payable, net | 66,136 | 66,136 |
Non-controlling Interest—Members in Consolidated Entities | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 269,487 | 268,246 |
Non-controlling interest—Units in the operating partnership | ||
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Non-controlling interest | 23,082 | 18,338 |
TOTAL EQUITY | 23,082 | 18,338 |
Hudson Pacific Partners, L.P. | ||
ASSETS | ||
Investment in real estate, at cost | 7,269,128 | 7,059,537 |
Accumulated depreciation and amortization | (898,279) | (695,631) |
Investment in real estate, net | 6,370,849 | 6,363,906 |
Cash and cash equivalents | 46,224 | 53,740 |
Restricted cash | 12,034 | 14,451 |
Accounts receivable, net | 13,007 | 14,004 |
Straight-line rent receivables, net | 195,328 | 142,369 |
Deferred leasing costs and lease intangible assets, net | 285,448 | 279,896 |
U.S. Government securities | 140,749 | 146,880 |
Operating lease right-of-use asset | 269,029 | |
Prepaid expenses and other assets, net | 68,974 | 55,633 |
Investment in unconsolidated real estate entity | 64,926 | 0 |
TOTAL ASSETS | 7,466,568 | 7,070,879 |
LIABILITIES | ||
Accounts payable, accrued liabilities and other | 212,673 | 175,300 |
Operating lease liability | 272,701 | |
Lease intangible liabilities, net | 31,493 | 45,612 |
Security deposits and prepaid rent | 86,188 | 68,687 |
TOTAL LIABILITIES | 3,622,131 | 3,117,793 |
Redeemable preferred units of the operating partnership | 9,815 | 9,815 |
Redeemable non-controlling interest in consolidated real estate entities | 125,260 | 113,141 |
Hudson Pacific Properties, Inc. stockholders’ equity: | ||
Accumulated other comprehensive income | (613) | 17,565 |
Hudson Pacific Properties, L.P. partners’ capital: | ||
Common units, 155,602,910 and 154,940,583 outstanding at December 31, 2019 and 2018, respectively. | 3,440,488 | 3,544,319 |
Total Hudson Pacific Properties, L.P. partners' capital | 3,439,875 | 3,561,884 |
Non-controlling interest—members in consolidated entities | 269,487 | 268,246 |
TOTAL CAPITAL | 3,709,362 | 3,830,130 |
Total Liabilities and Equity/Capital | $ 7,466,568 | $ 7,070,879 |
Company-owned common units in the operating partnership | 155,602,910 | 154,940,583 |
Hudson Pacific Partners, L.P. | Unsecured and secured debt | ||
LIABILITIES | ||
Notes payable, net | $ 2,817,910 | $ 2,623,835 |
Hudson Pacific Partners, L.P. | In-substance defeased debt | ||
LIABILITIES | ||
Notes payable, net | 135,030 | 138,223 |
Hudson Pacific Partners, L.P. | Joint venture partner debt | ||
LIABILITIES | ||
Notes payable, net | $ 66,136 | $ 66,136 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common Stock: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 490,000,000 | 490,000,000 |
Common stock/units, outstanding (in shares) | 154,691,052 | 154,371,538 |
Hudson Pacific Partners, L.P. | ||
Common Stock: | ||
Common stock/units, outstanding (in shares) | 155,602,910 | 154,940,583 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Revenues | $ 818,182,000 | $ 728,418,000 | $ 728,139,000 |
OPERATING EXPENSES | |||
General and administrative | 71,947,000 | 61,027,000 | 54,459,000 |
Depreciation and amortization | 282,088,000 | 251,003,000 | 283,570,000 |
Total operating expenses | 655,557,000 | 579,740,000 | 591,536,000 |
OTHER (EXPENSE) INCOME | |||
Loss from unconsolidated real estate entity | (747,000) | 0 | 0 |
Fee income | 1,459,000 | 0 | 0 |
Interest expense | (105,845,000) | (83,167,000) | (90,037,000) |
Interest income | 4,044,000 | 1,718,000 | 97,000 |
Transaction-related expenses | (667,000) | (535,000) | (598,000) |
Unrealized gain on non-real estate investments | 0 | 928,000 | 0 |
Unrealized loss on ineffective portion of derivative instruments | 0 | 0 | (70,000) |
Gains on sale of real estate | 47,100,000 | 43,337,000 | 45,574,000 |
Impairment loss | (52,201,000) | 0 | 0 |
Other income | 78,000 | 822,000 | 2,992,000 |
Total other expense | (106,779,000) | (36,897,000) | (42,042,000) |
Net income | 55,846,000 | 111,781,000 | 94,561,000 |
Net income attributable to preferred stock and units | (612,000) | (618,000) | (636,000) |
Net income attributable to participating securities | (692,000) | (663,000) | (1,003,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (13,352,000) | (11,883,000) | (24,960,000) |
Net income attributable to redeemable non-controlling interest in consolidated real estate entities | 1,994,000 | (169,000) | 0 |
Net income attributable to non-controlling interest in the operating partnership | (459,000) | (358,000) | (375,000) |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | $ 42,725,000 | $ 98,090,000 | $ 67,587,000 |
Basic and diluted per share amounts: | |||
Net income attributable to common stockholders - basic (in dollars per share) | $ 0.28 | $ 0.63 | $ 0.44 |
Net income attributable to common stockholders - diluted (in dollars per share) | $ 0.28 | $ 0.63 | $ 0.44 |
Weighted average shares of common stock outstanding—basic (in shares) | 154,404,427 | 155,445,247 | 153,488,730 |
Weighted average shares of common stock outstanding—diluted (in shares) | 156,602,408 | 155,696,486 | 153,882,814 |
Hudson Pacific Partners, L.P. | |||
REVENUES | |||
Revenues | $ 818,182,000 | $ 728,418,000 | $ 728,139,000 |
OPERATING EXPENSES | |||
General and administrative | 71,947,000 | 61,027,000 | 54,459,000 |
Depreciation and amortization | 282,088,000 | 251,003,000 | 283,570,000 |
Total operating expenses | 655,557,000 | 579,740,000 | 591,536,000 |
OTHER (EXPENSE) INCOME | |||
Loss from unconsolidated real estate entity | (747,000) | 0 | 0 |
Fee income | 1,459,000 | 0 | 0 |
Interest expense | (105,845,000) | (83,167,000) | (90,037,000) |
Interest income | 4,044,000 | 1,718,000 | 97,000 |
Transaction-related expenses | (667,000) | (535,000) | (598,000) |
Unrealized gain on non-real estate investments | 0 | 928,000 | 0 |
Unrealized loss on ineffective portion of derivative instruments | 0 | 0 | (70,000) |
Gains on sale of real estate | 47,100,000 | 43,337,000 | 45,574,000 |
Impairment loss | (52,201,000) | 0 | 0 |
Other income | 78,000 | 822,000 | 2,992,000 |
Total other expense | (106,779,000) | (36,897,000) | (42,042,000) |
Net income | 55,846,000 | 111,781,000 | 94,561,000 |
Net income attributable to preferred stock and units | (612,000) | (618,000) | (636,000) |
Net income attributable to participating securities | (922,000) | (663,000) | (1,003,000) |
Net income attributable to non-controlling interest in consolidated real estate entities | (13,352,000) | (11,883,000) | (24,960,000) |
Net income attributable to redeemable non-controlling interest in consolidated real estate entities | 1,994,000 | (169,000) | 0 |
Net income (loss) attributable to Hudson Pacific Properties, Inc. common stockholders | 42,954,000 | 98,448,000 | 67,962,000 |
Net income (loss) attributable to Hudson Pacific Properties, L.P. | $ 44,488,000 | $ 99,729,000 | $ 69,601,000 |
Basic and diluted per unit amounts: | |||
Net income attributable to common unitholders - basic (in dollars per share) | $ 0.28 | $ 0.63 | $ 0.44 |
Net income attributable to common unitholders — diluted (in dollars per share) | $ 0.28 | $ 0.63 | $ 0.44 |
Weighted average shares of common units outstanding - basic (in shares) | 155,094,997 | 156,014,292 | 154,276,773 |
Weighted average shares of common units outstanding - diluted (in shares) | 156,112,602 | 156,265,531 | 154,670,857 |
Office | |||
REVENUES | |||
Rental | $ 708,564,000 | $ 533,184,000 | $ 545,453,000 |
Tenant recoveries | 0 | 92,760,000 | 92,244,000 |
Service and other revenues | 25,171,000 | 26,573,000 | 29,413,000 |
Revenues | 733,735,000 | 652,517,000 | 667,110,000 |
OPERATING EXPENSES | |||
Operating expenses | 256,209,000 | 226,820,000 | 218,873,000 |
Total operating expenses | 256,209,000 | 226,820,000 | 218,873,000 |
Office | Hudson Pacific Partners, L.P. | |||
REVENUES | |||
Rental | 708,564,000 | 533,184,000 | 545,453,000 |
Tenant recoveries | 0 | 92,760,000 | 92,244,000 |
Service and other revenues | 25,171,000 | 26,573,000 | 29,413,000 |
Revenues | 733,735,000 | 652,517,000 | 667,110,000 |
OPERATING EXPENSES | |||
Operating expenses | 256,209,000 | 226,820,000 | 218,873,000 |
Studio Segment | |||
REVENUES | |||
Rental | 51,340,000 | 44,734,000 | 36,529,000 |
Tenant recoveries | 0 | 2,013,000 | 1,336,000 |
Service and other revenues | 33,107,000 | 29,154,000 | 23,164,000 |
Revenues | 84,447,000 | 75,901,000 | 61,029,000 |
OPERATING EXPENSES | |||
Operating expenses | 45,313,000 | 40,890,000 | 34,634,000 |
Total operating expenses | 45,313,000 | 40,890,000 | 34,634,000 |
Studio Segment | Hudson Pacific Partners, L.P. | |||
REVENUES | |||
Rental | 51,340,000 | 44,734,000 | 36,529,000 |
Tenant recoveries | 0 | 2,013,000 | 1,336,000 |
Service and other revenues | 33,107,000 | 29,154,000 | 23,164,000 |
Revenues | 84,447,000 | 75,901,000 | 61,029,000 |
OPERATING EXPENSES | |||
Operating expenses | $ 45,313,000 | $ 40,890,000 | $ 34,634,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income (loss) | $ 55,846 | $ 111,781 | $ 94,561 |
Currency translation adjustments | 1,845 | 0 | 0 |
Net unrealized (losses) gains on derivative instruments: | |||
Unrealized (losses) gains | (14,533) | 7,357 | 3,028 |
Reclassification adjustment for realized (losses) gains | (5,490) | (3,299) | 4,370 |
Total net unrealized (losses) gains on derivative instruments: | (20,023) | 4,058 | 7,398 |
Total other comprehensive (loss) income | (18,178) | 4,058 | 7,398 |
Comprehensive income | 37,668 | 115,839 | 101,959 |
Comprehensive income attributable to preferred stock and units | (612) | (618) | (636) |
Comprehensive income attributable to participating securities | (692) | (660) | (1,003) |
Net income attributable to non-controlling interest in consolidated real estate entities | (13,352) | (11,883) | (24,960) |
Comprehensive income attributable to redeemable non-controlling interest in consolidated real estate entities | 1,994 | (169) | 0 |
Comprehensive income attributable to non-controlling interest in the operating partnership | (343) | (372) | (420) |
Comprehensive income (loss) attributable to common stockholders and partners' capital | 24,663 | 102,137 | 74,940 |
Hudson Pacific Partners, L.P. | |||
Net income (loss) | 55,846 | 111,781 | 94,561 |
Currency translation adjustments | 1,845 | 0 | 0 |
Net unrealized (losses) gains on derivative instruments: | |||
Unrealized (losses) gains | (14,533) | 7,357 | 3,028 |
Reclassification adjustment for realized (losses) gains | (5,490) | (3,299) | 4,370 |
Total net unrealized (losses) gains on derivative instruments: | (20,023) | 4,058 | 7,398 |
Total other comprehensive (loss) income | (18,178) | 4,058 | 7,398 |
Comprehensive income | 37,668 | 115,839 | 101,959 |
Comprehensive income attributable to preferred stock and units | (612) | (618) | (636) |
Comprehensive income attributable to participating securities | (922) | (660) | (1,003) |
Net income attributable to non-controlling interest in consolidated real estate entities | (13,352) | (11,883) | (24,960) |
Comprehensive income attributable to redeemable non-controlling interest in consolidated real estate entities | 1,994 | (169) | 0 |
Comprehensive income (loss) attributable to common stockholders and partners' capital | $ 24,776 | $ 102,509 | $ 75,360 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Non-controlling interest—Units in the operating partnership | Non-controlling interest—Members in Consolidated Entities |
Beginning balance at Dec. 31, 2016 | $ 3,702,750 | $ 1,364 | $ 3,109,394 | $ (16,971) | $ 9,496 | $ 294,859 | $ 304,608 |
Beginning balance (in shares) at Dec. 31, 2016 | 136,492,235 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributions | 3,870 | 3,870 | |||||
Distributions | (74,836) | (74,836) | |||||
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs | 647,382 | $ 187 | 647,195 | ||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | 18,656,575 | ||||||
Issuance of unrestricted stock | $ 9 | (9) | |||||
Issuance of unrestricted stock (in shares) | 917,086 | ||||||
Shares withheld to satisfy tax withholding | (16,041) | $ (4) | (16,037) | ||||
Shares withheld to satisfy tax withholding (in shares) | (463,388) | ||||||
Declared dividend | (158,544) | (106,269) | (51,619) | (656) | |||
Amortization of stock-based compensation | 15,915 | 13,249 | 2,666 | ||||
Net income (loss) | 93,925 | 68,590 | 375 | 24,960 | |||
Other comprehensive income (loss) | 7,398 | 7,353 | 45 | ||||
Redemption of common units in the operating partnership | (310,855) | (24,535) | (3,622) | (282,698) | |||
Ending balance at Dec. 31, 2017 | 3,910,964 | $ 1,556 | 3,622,988 | 0 | 13,227 | 14,591 | 258,602 |
Ending balance (in shares) at Dec. 31, 2017 | 155,602,508 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Contributions | 2,486 | 2,486 | |||||
Distributions | (4,725) | (4,725) | |||||
Issuance of unrestricted stock | $ 5 | (5) | |||||
Issuance of unrestricted stock (in shares) | 571,481 | ||||||
Shares withheld to satisfy tax withholding | (4,753) | $ (2) | (4,751) | ||||
Shares withheld to satisfy tax withholding (in shares) | (163,191) | ||||||
Repurchase of common stock | $ (50,016) | $ (16) | (50,000) | ||||
Repurchase of common stock (in shares) | (1,639,260) | ||||||
Declared dividend | $ (157,003) | (57,769) | (98,522) | (712) | |||
Amortization of stock-based compensation | 18,125 | 14,039 | 4,086 | ||||
Net income (loss) | 110,994 | 98,753 | 358 | 11,883 | |||
Other comprehensive income (loss) | 4,058 | 4,044 | 14 | ||||
Ending balance at Dec. 31, 2018 | $ 3,830,130 | $ 1,543 | 3,524,502 | 0 | 17,501 | 18,338 | 268,246 |
Ending balance (in shares) at Dec. 31, 2018 | 154,371,538 | 154,371,538 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cumulative adjustment related to adoption of new accounting pronouncement | ASU 2016-02 (ASC 842) | $ (2,105) | (2,105) | |||||
Distributions | (12,111) | (12,111) | |||||
Issuance of unrestricted stock | 0 | $ 5 | (5) | ||||
Issuance of unrestricted stock (in shares) | 554,237 | ||||||
Shares withheld to satisfy tax withholding | $ (7,684) | $ (2) | (7,682) | ||||
Shares withheld to satisfy tax withholding (in shares) | (234,723) | ||||||
Repurchase of common stock | |||||||
Repurchase of common stock (in shares) | |||||||
Declared dividend | $ (157,825) | (114,283) | (2,230) | ||||
Amortization of stock-based compensation | 20,432 | 13,276 | (41,312) | 7,156 | |||
Net income (loss) | 57,228 | 43,417 | 459 | 13,352 | |||
Other comprehensive income (loss) | (18,178) | (18,062) | (116) | ||||
Redemption of common units in the operating partnership | (525) | (525) | |||||
Ending balance at Dec. 31, 2019 | $ 3,709,362 | $ 1,546 | $ 3,415,808 | $ 0 | $ (561) | $ 23,082 | $ 269,487 |
Ending balance (in shares) at Dec. 31, 2019 | 154,691,052 | 154,691,052 |
Consolidated Statements of Capi
Consolidated Statements of Capital - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance (in shares) | 154,371,538 | |||
Contributions | $ 2,486 | $ 3,870 | ||
Distributions | $ (12,111) | (4,725) | (74,836) | |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | |||
Issuance of unrestricted stock | 0 | |||
Units withheld to satisfy tax withholding | $ (7,684) | (4,753) | (16,041) | |
Repurchase of common units | $ (50,016) | |||
Repurchase of common units (in shares) | (1,639,260) | |||
Declared distributions | $ (157,825) | $ (157,003) | (158,544) | |
Amortization of unit-based compensation | 20,432 | 18,125 | 15,915 | |
Net income (loss) | 57,228 | 110,994 | 93,925 | |
Other comprehensive income (loss) | $ (18,178) | $ 4,058 | 7,398 | |
Ending balance (in shares) | 154,691,052 | 154,371,538 | ||
ASU 2016-02 (ASC 842) | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ (2,105) | |||
Hudson Pacific Partners, L.P. | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 3,830,130 | 3,910,964 | 3,702,750 | |
Beginning balance (in shares) | 154,940,583 | |||
Contributions | 2,486 | 3,870 | ||
Distributions | $ (12,111) | (4,725) | (74,836) | |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | |||
Units withheld to satisfy tax withholding | (7,684) | (4,769) | (16,041) | |
Repurchase of common units | (525) | (50,000) | (310,855) | |
Declared distributions | (157,825) | (157,003) | (158,544) | |
Amortization of unit-based compensation | 20,432 | 18,125 | 15,915 | |
Net income (loss) | 57,228 | 110,994 | 93,925 | |
Other comprehensive income (loss) | (18,178) | 4,058 | 7,398 | |
Ending balance | $ 3,709,362 | $ 3,830,130 | 3,910,964 | |
Ending balance (in shares) | 155,602,910 | 154,940,583 | ||
Hudson Pacific Partners, L.P. | ASU 2016-02 (ASC 842) | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ (2,105) | |||
Hudson Pacific Partners, L.P. | Total Partners’ Capital | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 3,561,884 | 3,652,362 | 3,398,142 | |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | 647,382 | |||
Units withheld to satisfy tax withholding | (7,684) | (4,769) | (16,041) | |
Repurchase of common units | (525) | (50,000) | (310,855) | |
Declared distributions | (157,825) | (157,003) | (158,544) | |
Amortization of unit-based compensation | 20,432 | 18,125 | 15,915 | |
Net income (loss) | 43,876 | 99,111 | 68,965 | |
Other comprehensive income (loss) | (18,178) | 4,058 | 7,398 | |
Ending balance | 3,439,875 | 3,561,884 | 3,652,362 | |
Hudson Pacific Partners, L.P. | Total Partners’ Capital | ASU 2016-02 (ASC 842) | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | (2,105) | |||
Hudson Pacific Partners, L.P. | Common Stock | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 3,544,319 | $ 3,639,086 | $ 3,392,264 | |
Beginning balance (in shares) | 154,940,583 | 156,171,553 | 145,942,855 | |
Proceeds from sale of common units, net of underwriters’ discount and transaction costs | $ 647,382 | |||
Proceeds from sale of common units, net of underwriters’ discount and transaction costs (in shares) | 18,656,575 | |||
Issuance of unrestricted stock (in shares) | 915,126 | 571,481 | 917,086 | |
Units withheld to satisfy tax withholding | $ (7,684) | $ (4,769) | $ (16,041) | |
Units withheld to satisfy tax withholding (in shares) | (234,723) | (163,191) | (463,388) | |
Repurchase of common units | $ (525) | $ (50,000) | $ (310,855) | |
Repurchase of common units (in shares) | (18,076) | (1,639,260) | (8,881,575) | |
Declared distributions | $ (157,825) | $ (157,003) | $ (158,544) | |
Amortization of unit-based compensation | 20,432 | 18,125 | 15,915 | |
Net income (loss) | 43,876 | 99,111 | 68,965 | |
Ending balance | $ 3,440,488 | $ 3,544,319 | $ 3,639,086 | |
Ending balance (in shares) | 155,602,910 | 154,940,583 | 156,171,553 | |
Hudson Pacific Partners, L.P. | Common Stock | ASU 2017-12 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ (231) | |||
Hudson Pacific Partners, L.P. | Common Stock | ASU 2016-02 (ASC 842) | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ (2,105) | |||
Hudson Pacific Partners, L.P. | Accumulated Other Comprehensive (Loss) Income | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | $ 17,565 | 13,276 | $ 5,878 | |
Other comprehensive income (loss) | (18,178) | 4,058 | 7,398 | |
Ending balance | (613) | 17,565 | 13,276 | |
Hudson Pacific Partners, L.P. | Accumulated Other Comprehensive (Loss) Income | ASU 2017-12 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ 231 | |||
Hudson Pacific Partners, L.P. | Non-controlling interest—Members in Consolidated Entities | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Beginning balance | 268,246 | 258,602 | 304,608 | |
Contributions | 2,486 | 3,870 | ||
Distributions | (12,111) | (4,725) | (74,836) | |
Net income (loss) | 13,352 | 11,883 | 24,960 | |
Ending balance | $ 269,487 | $ 268,246 | $ 258,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 55,846,000 | $ 111,781,000 | $ 94,561,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 282,088,000 | 251,003,000 | 283,570,000 |
Amortization of deferred financing costs and loan discount, net | 6,258,000 | 5,965,000 | 6,032,000 |
Amortization of stock/unit-based compensation | 19,481,000 | 17,028,000 | 15,079,000 |
Loss from unconsolidated real estate entity | 747,000 | 0 | 0 |
Straight-line rents | (52,959,000) | (36,202,000) | (29,638,000) |
Straight-line rent expenses | 1,463,000 | 711,000 | 433,000 |
Amortization of above- and below-market leases, net | (12,836,000) | (17,593,000) | (18,062,000) |
Amortization of above- and below-market ground lease, net | 2,460,000 | 2,422,000 | 2,505,000 |
Amortization of lease incentive costs | 1,771,000 | 1,464,000 | 1,546,000 |
Other non-cash adjustments | 0 | 369,000 | 883,000 |
Impairment loss | 52,201,000 | 0 | 0 |
Gains on sale of real estate | (47,100,000) | (43,337,000) | (45,574,000) |
Change in operating assets and liabilities: | |||
Accounts receivable | 699,000 | (10,854,000) | 1,929,000 |
Deferred leasing costs and lease intangibles | (46,645,000) | (55,286,000) | (32,244,000) |
Prepaid expenses and other assets | (11,165,000) | (2,978,000) | 233,000 |
Accounts payable and accrued liabilities | 18,202,000 | (13,184,000) | 19,447,000 |
Security deposits and prepaid rent | 17,500,000 | 3,317,000 | (7,741,000) |
Net cash provided by operating activities | 288,011,000 | 214,626,000 | 292,959,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | (385,751,000) | (351,277,000) | (302,447,000) |
Property acquisitions | 0 | (362,687,000) | (257,734,000) |
Purchase of U.S. Government securities | 0 | (149,176,000) | 0 |
Maturities of U.S. Government securities | 6,226,000 | 2,229,000 | 0 |
Proceeds from sales of real estate | 147,824,000 | 454,542,000 | 212,250,000 |
Distributions from unconsolidated entities | 290,000 | 14,036,000 | 15,964,000 |
Contributions to unconsolidated entity | (64,498,000) | 0 | (1,071,000) |
Deposits for property acquisitions | (20,500,000) | 0 | 0 |
Net cash used in investing activities | (316,409,000) | (392,333,000) | (333,038,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 1,215,647,000 | 650,000,000 | 766,660,000 |
Payments of unsecured and secured debt | (1,010,569,000) | (449,711,000) | (822,526,000) |
Payments of in-substance defeased debt | (3,193,000) | 0 | 0 |
Proceeds from joint venture partner debt | 0 | 66,136,000 | 0 |
Proceeds from issuance of common stock/units, net | 0 | 0 | 647,382,000 |
Repurchase of common stock/units | 0 | (50,000,000) | 0 |
Repurchase of operating partnership units | (525,000) | 0 | (310,855,000) |
Redemption of Series A preferred units | 0 | (362,000) | 0 |
Distributions paid to common stock and unit-holders | (157,825,000) | (157,003,000) | (158,544,000) |
Dividends paid to preferred unit-holders | (612,000) | (618,000) | (636,000) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 14,128,000 | 100,223,000 | 0 |
Distribution of redeemable non-controlling member in consolidated real estate entity | (15,000) | 0 | 0 |
Contribution of non-controlling member in consolidated real estate entities | 0 | 2,486,000 | 3,870,000 |
Distributions to non-controlling member in consolidated real estate entities | (12,111,000) | (4,725,000) | (74,836,000) |
Payments to satisfy tax withholding | (7,684,000) | (4,769,000) | (16,041,000) |
Payments of loan costs | (18,776,000) | (7,039,000) | (1,307,000) |
Net cash provided by financing activities | 18,465,000 | 144,618,000 | 33,167,000 |
Net decrease in cash and cash equivalents and restricted cash | (9,933,000) | (33,089,000) | (6,912,000) |
Cash and cash equivalents and restricted cash—beginning of period | 68,191,000 | 101,280,000 | 108,192,000 |
Cash and cash equivalents and restricted cash—end of period | 58,258,000 | 68,191,000 | 101,280,000 |
Hudson Pacific Partners, L.P. | |||
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | 55,846,000 | 111,781,000 | 94,561,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 282,088,000 | 251,003,000 | 283,570,000 |
Amortization of deferred financing costs and loan discount, net | 6,258,000 | 5,965,000 | 6,032,000 |
Amortization of stock/unit-based compensation | 19,481,000 | 17,028,000 | 15,079,000 |
Loss from unconsolidated real estate entity | 747,000 | 0 | 0 |
Straight-line rents | (52,959,000) | (36,202,000) | (29,638,000) |
Straight-line rent expenses | 1,463,000 | 711,000 | 433,000 |
Amortization of above- and below-market leases, net | (12,836,000) | (17,593,000) | (18,062,000) |
Amortization of above- and below-market ground lease, net | 2,460,000 | 2,422,000 | 2,505,000 |
Amortization of lease incentive costs | 1,771,000 | 1,464,000 | 1,546,000 |
Other non-cash adjustments | 0 | 369,000 | 883,000 |
Impairment loss | 52,201,000 | 0 | 0 |
Gains on sale of real estate | (47,100,000) | (43,337,000) | (45,574,000) |
Change in operating assets and liabilities: | |||
Accounts receivable | 699,000 | (10,854,000) | 1,929,000 |
Deferred leasing costs and lease intangibles | (46,645,000) | (55,286,000) | (32,244,000) |
Prepaid expenses and other assets | (11,165,000) | (2,978,000) | 233,000 |
Accounts payable and accrued liabilities | 18,202,000 | (13,184,000) | 19,447,000 |
Security deposits and prepaid rent | 17,500,000 | 3,317,000 | (7,741,000) |
Net cash provided by operating activities | 288,011,000 | 214,626,000 | 292,959,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Additions to investment property | (385,751,000) | (351,277,000) | (302,447,000) |
Property acquisitions | 0 | (362,687,000) | (257,734,000) |
Purchase of U.S. Government securities | 0 | (149,176,000) | 0 |
Maturities of U.S. Government securities | 6,226,000 | 2,229,000 | 0 |
Proceeds from sales of real estate | 147,824,000 | 454,542,000 | 212,250,000 |
Distributions from unconsolidated entities | 290,000 | 14,036,000 | 15,964,000 |
Contributions to unconsolidated entity | (64,498,000) | 0 | (1,071,000) |
Deposits for property acquisitions | (20,500,000) | 0 | 0 |
Net cash used in investing activities | (316,409,000) | (392,333,000) | (333,038,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from unsecured and secured debt | 1,215,647,000 | 650,000,000 | 766,660,000 |
Payments of unsecured and secured debt | (1,010,569,000) | (449,711,000) | (822,526,000) |
Payments of in-substance defeased debt | (3,193,000) | 0 | 0 |
Proceeds from joint venture partner debt | 0 | 66,136,000 | 0 |
Proceeds from issuance of common stock/units, net | 0 | 0 | 647,382,000 |
Repurchase of common stock/units | 0 | (50,000,000) | 0 |
Repurchase of operating partnership units | (525,000) | 0 | (310,855,000) |
Redemption of Series A preferred units | 0 | (362,000) | 0 |
Distributions paid to common stock and unit-holders | (157,825,000) | (157,003,000) | (158,544,000) |
Dividends paid to preferred unit-holders | (612,000) | (618,000) | (636,000) |
Contribution of redeemable non-controlling member in consolidated real estate entities | 14,128,000 | 100,223,000 | 0 |
Distribution of redeemable non-controlling member in consolidated real estate entity | (15,000) | 0 | 0 |
Contribution of non-controlling member in consolidated real estate entities | 0 | 2,486,000 | 3,870,000 |
Distributions to non-controlling member in consolidated real estate entities | (12,111,000) | (4,725,000) | (74,836,000) |
Payments to satisfy tax withholding | (7,684,000) | (4,769,000) | (16,041,000) |
Payments of loan costs | (18,776,000) | (7,039,000) | (1,307,000) |
Net cash provided by financing activities | 18,465,000 | 144,618,000 | 33,167,000 |
Net decrease in cash and cash equivalents and restricted cash | (9,933,000) | (33,089,000) | (6,912,000) |
Cash and cash equivalents and restricted cash—beginning of period | 68,191,000 | 101,280,000 | 108,192,000 |
Cash and cash equivalents and restricted cash—end of period | $ 58,258,000 | $ 68,191,000 | $ 101,280,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries. The Company’s portfolio consists of properties located throughout Northern and Southern California, the Pacific Northwest and Western Canada. The following table summarizes the Company’s portfolio as of December 31, 2019: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 13,373,338 Studio 3 1,224,403 Land 6 2,231,376 Total consolidated portfolio 60 16,829,117 Unconsolidated portfolio (1) Office 1 1,477,142 Land 1 450,000 Total unconsolidated portfolio 2 1,927,142 TOTAL (2) 62 18,756,259 _________________ 1. The Company purchased, pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone”), the Bentall Centre property located in Vancouver, Canada. The Company owns 20% of this joint venture. The square footage shown above represents 100% of the property. For further detail regarding the Bentall Centre property, see Note 4. 2. Includes redevelopment and development properties. Concentrations As of December 31, 2019, the Company’s office properties were located in Northern and Southern California, the Pacific Northwest and Western Canada. The Company’s studio properties were located in Hollywood in Southern California. 81.5% of the Company’s consolidated and unconsolidated properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio. A significant portion of the Company’s rental revenue is derived from tenants in the technology and media and entertainment industries. As of December 31, 2019, approximately 30.3% and 18.5% of consolidated and unconsolidated rentable square feet were related to the tenants in the technology and media and entertainment industries, respectively. As of December 31, 2019, the Company’s 15 largest tenants represented approximately 31.8% of consolidated and unconsolidated rentable square feet and no single tenant accounted for more than 10%. As of December 31, 2019, no single tenant in the Company’s office or studio segment had rental revenues representing more than 10% of the respective segment’s total revenue. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any references to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). Certain amounts in the consolidated financial statements for the prior periods have been reclassified to conform to the current year presentation. Principles of Consolidation The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with both the power to direct the activities that most significantly affect the VIE’s economic performance and the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. As of December 31, 2019, the Company has determined that its operating partnership and five joint ventures met the definition of a VIE. Four of the joint ventures are consolidated and one of the joint ventures is unconsolidated. Consolidated Joint Ventures As of December 31, 2019, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC (“HPP-MAC JV”). On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The HPP-MAC JV is held 75% by the Company and 25% by Macerich, with the Company serving as the managing member and developer. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. On October 9, 2018, the Company entered into a joint venture with Allianz U.S. Private REIT LP (“Allianz”) to purchase the Ferry Building property. The Company owns 55% of the joint venture. The joint venture agreement lacks substantive participating or kick-out rights and is therefore a VIE. The Company, through its subsidiaries, has the right to (i) receive benefits and absorb losses and (ii) has the power to direct the activities that most significantly affect the joint venture and, as a result, is the primary beneficiary and consolidates the joint venture. As of December 31, 2019 and 2018, the Company has determined that its operating partnership met the definition of a VIE and is consolidated. Substantially all of the assets and liabilities of the Company are related to the operating partnership VIEs. Unconsolidated Joint Ventures As of December 31, 2019, the Company has determined it is not the primary beneficiary of one joint venture. Due to its significant influence over the unconsolidated entity, the Company accounts for the entity using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. On June 5, 2019, the Company purchased, pursuant to a co-ownership agreement with Blackstone, the Bentall Centre property located in Vancouver, Canada. The joint venture property-owning entity is structured as a tenancy in common under applicable tax laws. The Company owns 20% of this joint venture and serves as the operating partner. The Company’s net equity investment of this unconsolidated entity is reflected within investment in unconsolidated real estate entity on the Consolidated Balance Sheets. The Company’s share of net income or loss from the entity is included within loss from unconsolidated real estate entity on the Consolidated Statements of Operations. Refer to Note 4 for details. On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The Company owned 21% of the non-consolidated entity. In the third quarter of 2019, the joint venture was dissolved. The Company’s net equity investment in the unconsolidated joint venture was $0 and $86 thousand as of December 31, 2019 and December 31, 2018, respectively, which is reflected within prepaid expenses and other assets, net line item on the Consolidated Balance Sheets. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. Investment in Real Estate Properties Acquisitions The Company evaluates each acquisition to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if (i) the process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce) that is skilled, knowledgeable and experienced in performing the process, (ii) the process cannot be replaced without significant cost, effort, or delay or (iii) the process is considered unique or scarce. Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered business combinations, assets acquired and liabilities assumed are fair valued at the acquisition date. Assets acquired and liabilities assumed include, but are not limited to, land, building and improvements, intangible assets related to above- and below-market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial accounting for a business combination is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price assignment are made within the measurement period, which typically does not exceed one year, within the Consolidated Balance Sheets. Acquisition-related expenses associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair values of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers commissions, legal and other leasing related costs. The fair value debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity. Costs associated with development and redevelopment that are capitalized include interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. The Company recognized the following capitalized costs: Year Ended December 31, 2019 2018 2017 Capitalized personnel costs $ 9,218 $ 12,233 $ 10,853 Capitalized interest 16,258 14,815 10,655 Operating Properties The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of lease, the amortization of intangible assets and liabilities is accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. Held for sale The Company classifies properties as held for sale when certain criteria set forth in Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale in the Consolidated Balance Sheets for all periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. According to ASC 205, Presentation of Financial Statements , the Company does not present the operating results in net loss from discontinued operations for disposals if they do not represent a strategic shift in the Company’s business. There were no discontinued operations for the years ended December 31, 2019, 2018, and 2017. Impairment of Long-Lived Assets The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties based on Level 1 or Level 2 inputs, less estimated costs to sell. During the year ended December 31, 2019, the Company recorded $52.2 million of impairment charges related to the Campus Center office property that was held for sale at March 31, 2019 and was subsequently sold. The Company’s estimated fair value was based on the sale price (Level 2 input). No impairment indicators have been noted and the Company recorded no impairment charges during the years ended December 31, 2018 and 2017. Goodwill Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business acquisitions. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. No impairment indicators have been identified during the years ended December 31, 2019, 2018 and 2017. Goodwill is included in the prepaid expenses and other assets, net line item on the Consolidated Balance Sheets. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2019 2018 2017 BEGINNING OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 END OF THE PERIOD Cash and cash equivalents $ 46,224 $ 53,740 $ 78,922 Restricted cash 12,034 14,451 22,358 TOTAL $ 58,258 $ 68,191 $ 101,280 Receivables The Company’s accounting policy and methodology used to assess collectability related to rental revenues changed on January 1, 2019 when the Company adopted ASC 842. The guidance requires the Company to assess, at lease commencement and subsequently, collectability from its tenants of future lease payments. If the Company determines collectability is not probable, it recognizes an adjustment to lower income from rentals, whereas previously the Company recognized bad debt expense. In addition, for amounts deemed probable of collection, the Company also may record an allowance under other authoritative GAAP based on the evaluation of individual receivables, including specific credit enhancements and other relevant factors. Accounts Receivable, net The following table represents the Company’s accounts receivable, net as of: December 31, 2019 December 31, 2018 Accounts receivable $ 13,007 $ 16,494 Allowance for doubtful accounts — (2,490) ACCOUNTS RECEIVABLE, NET $ 13,007 $ 14,004 Straight-line Rent Receivables, net The following table represents the Company’s straight - line rent receivables, net as of: December 31, 2019 December 31, 2018 Straight-line rent receivables $ 195,328 $ 142,369 Allowance for doubtful accounts — — STRAIGHT-LINE RENT RECEIVABLES, NET $ 195,328 $ 142,369 U.S. Government Securities The Company holds U.S. Government securities related to assumed debt held by a trust subsidiary. These securities are considered held to maturity investments and are carried at amortized cost on the Consolidated Balance Sheets. The Company has both the intent and ability to hold to maturity. As of December 31, 2019, the Company had $3.8 million of gross unrealized gains and no gross unrealized losses related to these U.S. Government securities. Prepaid Expenses and Other Assets, net The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2019 December 31, 2018 Derivative assets $ 479 $ 16,687 Goodwill 8,754 8,754 Non-real estate investments 5,545 2,713 Deposits for future acquisitions 22,405 1,750 Deferred financing costs 3,246 3,296 Prepaid insurance 3,463 3,014 Prepaid property tax 2,070 1,919 Other 23,012 17,500 PREPAID EXPENSES AND OTHER ASSETS, NET $ 68,974 $ 55,633 Non-Real Estate Investments The Company holds investments in an entity that does not report NAV. The Company marks this investment to fair value based on Level 2 inputs, whenever fair value is readily available or observable. The Company also invests in an entity that reports NAV. The investment, which is in a real estate technology venture capital fund, involves a commitment of funding from the Company of up to $20.0 million. The Company uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value for the investment. As of December 31, 2019, the Company has contributed $2.8 million to this fund with $17.2 million remaining to be contributed. There has been no change in NAV since the initial investment. Changes in fair value are included in the unrealized gain on non-real estate investment line item on the Consolidated Statements of Operations. No gain or loss has been recognized due to observable changes in fair value for the year ended December 31, 2019. To date, the Company has recognized an unrealized gain of $928 thousand related to observable changes in fair value, which was recognized in the second quarter of 2018. Lease Accounting In February 2016, the FASB issued guidance codified in ASC 842, Leases (“ASC 842”), which amends the guidance in former ASC 840, Leases (“ASC 840”). The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Company adopted ASC 842 on January 1, 2019 using the modified retrospective transition approach that must be applied for leases that exist or are entered into after January 1, 2019. ASC 842 requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. ASC 842 provides transition practical expedients that must be elected together, which allows relief from the requirement to (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases that are in effect as of the date of adoption. The guidance also permits an entity to elect a practical expedient that provides relief from the requirement to assess whether an existing or expired land easement that was not previously accounted for as a lease under ASC 840 is considered a lease under ASC 842. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The Company elected the practical expedients above. The lessor practical expedient to combine lease and non-lease components was elected only for the Company’s leases related to the office properties. For the Company’s studio properties, the timing and pattern of the transfer of the lease components and non-lease components for studio properties are not the same and therefore the Company did not elect this practical expedient for the Company’s studio properties. The standalone selling price related to the studio non-lease components is readily available and does not require estimates. Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground lease assets and are reflected in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company made an accounting policy election by class of underlying asset not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and liabilities was 5.7%. ROU assets also include any lease payments made and exclude lease incentives. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term, as of December 31, 2019, was 32 years. Lessor Accounting As a lessor, the Company’s recognition of revenue remained consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. With the election of the lessor practical expedient, the presentation of revenues on the Consolidated Statement of Operations has changed to reflect a single lease component that combines rental, tenant recoveries, and other tenant-related revenues for the office portfolio. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). The new standard defines initial direct costs as only the incremental costs of signing a lease. Internal direct compensation costs and external legal fees related to the execution of successful lease agreements that no longer meet the definition of initial direct costs under ASC 842 are accounted for as office operating expense or studio operating expense in the Company’s Consolidated Statements of Operations. Additionally, the Company may elect the practical expedients only for leases that have commenced before the effective date of the adoption of ASC 842. As a result of the adoption, the Company recognized $1.8 million as a cumulative adjustment to accumulated deficit for costs associated with leases that have not commenced as of January 1, 2019, that were previously capitalized and no longer meet the definition of initial direct costs in accordance with ASC 842. The Company recognized $0.3 million as cumulative adjustments to accumulated deficit related to other transition adjustments. Revenue Recognition The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location (1) Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate _________________ 1. The financial statement locations stated above are for the year ended December 31, 2019, after the adoption of ASC 842, and do not reflect the locations for the year ended December 31, 2018. The Company’s 2019 revenues are accounted for under ASU 842 while the 2018 and 2017 rental revenues are accounted for under ASC 840. The Company continues to recognize rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues includes parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues and guest parking revenues have been acc |
Investment in Real Estate
Investment in Real Estate | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate [Abstract] | |
Investment in Real Estate | Investment in Real Estate The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2019 December 31, 2018 Land $ 1,313,412 $ 1,372,872 Building and improvements 5,189,342 4,991,770 Tenant improvements 631,459 510,217 Furniture and fixtures 10,693 9,320 Property under development 124,222 175,358 INVESTMENT IN REAL ESTATE, AT COST $ 7,269,128 $ 7,059,537 Acquisitions On June 5, 2019, the Company purchased, through a joint venture with Blackstone, the Bentall Centre office property and retail complex in Vancouver, Canada. This joint venture is an unconsolidated entity; please refer to Note 4 for details. The Company had no acquisitions related to consolidated entities during the year ended December 31, 2019. The following table summarizes the information on the acquisitions completed in 2018: Property Submarket Segment Date of Acquisition Square Feet Purchase Price (1) (in millions) 6605 Eleanor Avenue (2) Hollywood Studio 6/7/2018 22,823 $ 18.0 1034 Seward Street (2) Hollywood Studio 6/7/2018 18,673 12.0 One Westside and 10850 Pico (3) West Los Angeles Office 8/31/2018 595,987 190.0 Ferry Building (4) San Francisco Office 10/9/2018 268,018 291.0 6660 Santa Monica (2) Hollywood Studio 10/23/2018 11,200 10.0 TOTAL ACQUISITIONS IN 2018 916,701 $ 521.0 _____________ 1. Represents purchase price before certain credits, prorations and closing costs. 2. The properties are adjacent to, and now form part of, the Sunset Las Palmas Studios property and consist of sound stages, production office and support space. 3. The Company owns 75% of the ownership interest in the consolidated joint venture that owns these properties. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. 4. The Company owns 55% of the ownership interest in the consolidated joint venture that owns this property. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. The Company’s acquisitions in 2018 did not meet the definition of a business and were therefore accounted for as asset acquisitions. In accordance with asset acquisitions, the purchase price includes capitalized acquisition costs. The following table represents the Company’s final purchase price accounting, as of the respective acquisition dates, for each of the Company’s acquisitions completed in 2018: 6605 Eleanor Avenue 1034 Seward Street One Westside and 10850 Pico Ferry Building 6660 Santa Monica Total Total consideration Cash consideration for real estate investments $ 18,071 $ 12,095 $ 40,986 $ 281,180 $ 10,355 $ 362,687 Cash consideration for U.S. Government securities — — 149,176 — — 149,176 Debt assumed — — 139,003 — — 139,003 Redeemable non-controlling interest in consolidated real estate entities — — 12,749 — — 12,749 TOTAL CONSIDERATION $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 Allocation of consideration Investment in real estate $ 18,071 $ 12,095 $ 196,444 $ 268,292 $ 10,355 $ 505,257 U.S. Government securities — — 149,176 — — 149,176 Deferred leasing costs and in-place lease intangibles (1) — — 826 17,586 — 18,412 Above-market leases (2) — — 605 742 — 1,347 Below-market ground lease (3) — — — 4,528 — 4,528 Below-market leases (4) — — (5,137) (9,968) — (15,105) TOTAL $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 _____________ 1. Represents weighted-average amortization period of 6.9 years (before any renewal or extension options). 2. Represents weighted-average amortization period of 5.1 years (before any renewal or extension options). 3. Represents weighted-average amortization period of 48.6 years. 4. Represents weighted-average amortization period of 11.1 years. Impairment of Long-Lived Assets During the year ended December 31, 2019, the Company recorded $52.2 million of impairment charges related to the Campus Center office property that was held for sale at March 31, 2019 and was subsequently sold. The Company’s estimated fair value was based on the sale price (Level 2 input). The Company did not recognize impairment charges during the year ended December 31, 2018 and 2017. Dispositions The following table summarizes the properties sold in 2019, 2018 and 2017. These properties were considered non-strategic to the Company’s portfolio: Property Segment Date of Disposition Square Feet Sales Price (1) (in millions) Campus Center Office Office 7/24/2019 471,580 $ 70.3 Campus Center Land Office 7/30/2019 946,350 78.1 TOTAL DISPOSITIONS IN 2019 1,417,930 $ 148.4 Embarcadero Place Office 1/25/2018 197,402 $ 136.0 2600 Campus Drive (building 6 of Peninsula Office Park) Office 1/31/2018 63,050 22.5 2180 Sand Hill Office 3/1/2018 45,613 82.5 9300 Wilshire Office 4/10/2018 61,422 13.8 Peninsula Office Park Office 7/27/2018 447,739 210.0 TOTAL DISPOSITIONS IN 2018 815,226 $ 464.8 222 Kearny Office 2/14/2017 148,797 $ 51.8 3402 Pico Office 3/21/2017 50,687 35.0 Pinnacle I and Pinnacle II Office 11/16/2017 623,777 350.0 TOTAL DISPOSITIONS IN 2017 823,261 $ 436.8 _____________ 1. Represents gross sales price before certain credits, prorations and closing costs. The disposition of these properties resulted in gains of $47.1 million, $43.3 million and $45.6 million for the years ended December 31, 2019, 2018 and 2017, respectively. These amounts are included in the gains on sale of real estate line item in the Consolidated Statements of Operations. Held for sale |
Investment in Unconsolidated Re
Investment in Unconsolidated Real Estate Entity | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Real Estate Entity | Investment in Unconsolidated Real Estate Entity On June 5, 2019, the Company purchased, through a joint venture with Blackstone, the Bentall Centre office property and retail complex in Vancouver, Canada. The Company owns 20% of this joint venture and serves as the operating partner. The unconsolidated real estate entity’s functional currency is the local currency. The Company has exposure to risks related to foreign currency fluctuations. The assets and liabilities are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. Income statement accounts of our foreign subsidiaries are translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive income as a separate component of total equity and are excluded from net income. The maximum exposure related to this unconsolidated joint venture is limited to our investment and $97.1 million of debt which the Company has guaranteed. The summarized balance sheet of the Company’s unconsolidated real estate entity represents the combined entities for Bentall Centre as of December 31, 2019: December 31, 2019 ASSETS Investment in real estate, net $ 794,321 Other Assets 51,597 TOTAL ASSETS 845,918 LIABILITIES Secured debt, net 480,127 Other liabilities 42,672 TOTAL LIABILITIES 522,799 Company’s capital (1) 64,624 Partner's capital 258,495 TOTAL CAPITAL 323,119 TOTAL LIABILITIES AND CAPITAL $ 845,918 _____________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in loss form unconsolidated real estate entity on the Consolidated Statements of Operations. The summarized statement of operation of the Company’s unconsolidated real estate entity represents the combined entities for Bentall Centre for the June 5, 2019 acquisition date through December 31, 2019: Year Ended December 31, 2019 TOTAL REVENUES $ 41,687 TOTAL EXPENSES (46,434) NET LOSS $ (4,747) |
Deferred Leasing Costs and Leas
Deferred Leasing Costs and Lease Intangibles, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Deferred Leasing Costs and Lease Intangibles, net | Deferred Leasing Costs and Lease Intangibles, net The following summarizes the Company’s deferred leasing costs and lease intangibles as of: December 31, 2019 December 31, 2018 Deferred leasing costs and in-place lease intangibles $ 359,215 $ 336,535 Accumulated amortization (136,816) (123,432) Deferred leasing costs and in-place lease intangibles, net 222,399 213,103 Below-market ground leases 72,916 72,916 Accumulated amortization (11,436) (8,932) Below-market ground leases, net 61,480 63,984 Above-market leases 8,015 8,425 Accumulated amortization (6,446) (5,616) Above-market leases, net 1,569 2,809 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 285,448 $ 279,896 Below-market leases $ 87,064 $ 101,736 Accumulated amortization (56,447) (57,043) Below-market leases, net 30,617 44,693 Above-market ground leases 1,095 1,095 Accumulated amortization (219) (176) Above-market ground leases, net 876 919 LEASE INTANGIBLE LIABILITIES, NET $ 31,493 $ 45,612 The Company recognized the following amortization related to deferred leasing costs and lease intangibles: For the Year Ended December 31, 2019 2018 2017 Deferred leasing costs and in-place lease intangibles (1) $ (45,177) $ (46,690) $ (72,883) Below-market ground leases (2) $ (2,503) $ (2,465) $ (2,548) Above-market leases (3) $ (1,240) $ (1,550) $ (6,953) Below-market leases (3) $ 14,076 $ 19,143 $ 25,015 Above-market ground leases (2) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in revenues in the Consolidated Statements of Operations. The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2019: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2020 $ (36,485) $ (2,504) $ (594) $ 10,220 $ 43 2021 (30,115) (2,504) (412) 7,298 43 2022 (23,739) (2,504) (245) 4,719 43 2023 (19,423) (2,504) (217) 3,807 43 2024 (13,981) (2,504) (95) 1,804 43 Thereafter (98,656) (48,960) (6) 2,769 661 TOTAL $ (222,399) $ (61,480) $ (1,569) $ 30,617 $ 876 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information with respect to our outstanding indebtedness: December 31, 2019 December 31, 2018 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ 75,000 $ 400,000 LIBOR + 1.05% to 1.50% 3/13/2022 (4) Term loan A (2)(5) — 300,000 LIBOR + 1.20% to 1.70% 4/1/2020 (9) Term loan B (2)(6) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan C (2) — 75,000 LIBOR + 1.30% to 2.20% 11/17/2020 Term loan D (2)(7) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes (8) 500,000 — 4.65% 4/1/2029 3.25% Registered senior notes (9) 400,000 — 3.25% 1/15/2030 Total unsecured debt 2,475,000 2,275,000 Secured debt Met Park North (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (11) 26,312 26,880 5.32% 3/11/2022 One Westside and 10850 Pico (12) 5,646 — LIBOR + 1.70% 12/18/2023 (4) Revolving Sunset Bronson Studios/ICON/CUE facility (13) 5,001 — LIBOR + 1.35% 3/1/2024 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (14) 101,000 101,000 3.38% 11/6/2028 Sunset Gower Studios/Sunset Bronson Studios — 5,001 LIBOR + 2.25% 3/4/2019 Total secured debt 370,459 365,381 Total unsecured and secured debt 2,845,459 2,640,381 Unamortized deferred financing costs/loan discounts (15) (27,549) (16,546) TOTAL UNSECURED AND SECURED DEBT, NET $ 2,817,910 $ 2,623,835 IN-SUBSTANCE DEFEASED DEBT (16) $ 135,030 $ 138,223 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (17) $ 66,136 $ 66,136 4.50% 10/9/2028 _____________ 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 December 31, 2019, which may be different than the interest rates as of December 31, 2018 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of December 31, 2019, no such election had been made. 3. The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 7 for details. Term loan A was paid off on October 3, 2019. 6. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 7 for details. 7. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 7 for details. 8. On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million. 9. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at 99.268% of par value, with a coupon of 3.25%. The net proceeds from the offering were used to repay the $300.0 million five 10. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 7 for details. 11. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 12. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 13. The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. 14. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 15. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details. 16. The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is separately presented on the balance sheet. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. 17. This amount relates to debt due to Allianz, the Company’s partner in the joint venture that owns the Ferry Building property. The maturity date may be extended twice for an additional two Current Year Activity During the 12 months ended December 31, 2019, the outstanding borrowings on the unsecured revolving credit facility decreased by $325.0 million, net of draws. The Company uses the unsecured revolving credit facility to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes. On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million in senior notes due April 1, 2029. The notes were issued at 98.663% of par value, with a coupon of 4.65%. The notes are fully and unconditionally guaranteed by the Company. The net proceeds from the offering, after deducting the underwriting discount, were approximately $343.0 million and were used to repay outstanding borrowings under its unsecured revolving credit facility and $75.0 million of its five On March 1, 2019, the Company entered into a loan agreement to borrow up to $235.0 million on a revolving basis, maturing on March 1, 2024. The Company drew $5.0 million to pay down the Sunset Gower Studios/Sunset Bronson Studios construction loan that matured on March 4, 2019. The unused fee rate is 0.20%. On June 14, 2019, the operating partnership completed an underwritten public offering of $150.0 million in senior notes due April 1, 2029. The notes were issued at 104.544% of par value, with a coupon of 4.65%. These notes were issued as additional notes under the indenture, pursuant to which the operating partnership previously issued $350.0 million of 4.65% senior notes due 2029. The notes are fully and unconditionally guaranteed by the Company. The net proceeds from the offering, after deducting the underwriting discount and commissions, were approximately $155.3 million, $150.0 million of which were used by the operating partnership to repay outstanding borrowings under its unsecured revolving credit facility. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million of senior notes due January 15, 2030. The notes were issued at 99.268% of par value, with a coupon of 3.25% and are fully and unconditionally guaranteed by the Company. The net proceeds from the offering, after deducting the underwriting discount, were approximately $393.7 million and were used to repay its $300.0 million five On December 18, 2019, the Company closed a four one Indebtedness The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates. Loan agreements include events of default that the Company believes are usual for loans and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans. The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of December 31, 2019: For the Year Ended December 31, Unsecured and Secured Debt In-Substance Defeased Debt Joint Venture Partner Debt 2020 $ 65,095 $ 3,323 $ — 2021 632 3,494 — 2022 575,085 128,213 — 2023 165,646 — — 2024 5,001 — — Thereafter 2,034,000 — 66,136 TOTAL $ 2,845,459 $ 135,030 $ 66,136 Unsecured debt Term Loan Agreement and Credit Facility On March 13, 2018, the operating partnership entered into a third amended and restated credit agreement (the “Amended and Restated Credit Agreement”) with various financial institutions. The Amended and Restated Credit Agreement amends and restates and replaces (i) the operating partnership’s existing second amended and restated credit agreement, entered into on March 31, 2015, which governed its $400.0 million unsecured revolving credit facility, $300.0 million unsecured 5-year term loan facility and $350.0 million unsecured 7-year term loan facility, and (ii) the operating partnership’s Term Loan Credit Agreement, entered into on November 17, 2015, which governed its $75.0 million unsecured 5-year term loan facility and $125.0 million unsecured 7-year term loan facility. The Amended and Restated Credit Agreement provides for (i) the increase of the operating partnership’s unsecured revolving credit facility to $600.0 million and the extension of the term to March 13, 2022 and (ii) term loans in amount and tenor equal to the term loans outstanding under the previous agreements ($300.0 million term loan A maturing April 1, 2020, $350.0 million term loan B maturing April 1, 2022, $75.0 million term loan C maturing November 17, 2020 and $125.0 million term loan D maturing November 17, 2022). The $75.0 million term loan was repaid with proceeds from the Company’s 4.65% registered senior notes. The $300.0 million term loan was repaid with proceeds from the Company’s 3.25% registered senior notes on October 3, 2019. The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: December 31, 2019 December 31, 2018 Outstanding borrowings $ 75,000 $ 400,000 Remaining borrowing capacity 525,000 200,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 1. The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2019, no such election had been made. 2. The maturity date may be extended once for an additional one Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the commitments held under the Amended and Restated Credit Agreement so long as the aggregate commitments do not exceed $2.0 billion. The operating partnership continues to be the borrower under the Amended and Restated Credit Facility Agreement, and the Company and all subsidiaries that own unencumbered properties will continue to provide guarantees unless the Company obtains and maintains a credit rating of at least BBB- from S&P or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. In October 2019, Moody’s Investors Service upgraded the Company’s long-term corporate credit rating from Baa3 to Baa2, with a stable outlook. Note Purchase Agreements On November 16, 2015, the operating partnership entered into a note purchase agreement with various purchasers, which provides for $425.0 million of guaranteed senior notes by the operating partnership, of which (i) $110.0 million are designated as 4.34% series A guaranteed senior notes due January 2, 2023 (the “Series A Notes”), (ii) $259.0 million are designated as 4.69% series B guaranteed senior notes due December 16, 2025 (the “Series B Notes”) and (iii) $56.0 million are designated as 4.79% series C guaranteed senior notes due December 16, 2027 (the “Series C Notes”). On July 6, 2016, the Company entered into a note purchase agreement of debt for $150.0 million of 3.98% guaranteed senior notes due July 6, 2026 (the “Series D Notes”). Upon issuance, the notes pay interest semi-annually on the 6th day of January and July in each year until maturity. The Company also secured an additional $50.0 million of funds from a note purchase agreement of 3.66% guaranteed senior notes due September 15, 2023 (the “Series E Notes”), which were drawn on September 15, 2016. The operating partnership may prepay at any time all or, from time to time, any part of the note purchase agreements in an amount not less than 5% of the aggregate principal amount of any series of note purchase agreements then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid plus a make-whole premium. The operating partnership’s obligations under note purchase agreements will be fully and unconditionally guaranteed by the Company. Subsidiaries of the Company will also issue unconditional guarantees upon the occurrence of certain conditions, including such subsidiaries providing guarantees under the Amended and Restated Credit Facility Agreement, by and among the operating partnership, the financial institutions party thereto, and Wells Fargo Bank, National Association as administrative agent. Debt Covenants The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in their respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants. The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 35.4% Unsecured indebtedness to unencumbered asset value ≤ 60% 41.4% Adjusted EBITDA to fixed charges ≥ 1.5x 3.5x Secured indebtedness to total asset value ≤ 45% 5.6% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.4x The following table summarizes existing covenants and their covenant levels related to our registered senior notes: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 38.2% Total unencumbered assets to unsecured debt ≥ 150% 246.9% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x Secured debt to total assets ≤ 45% 6.0% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of December 31, 2019. The operating partnership was in compliance with its financial covenants as of December 31, 2019. Repayment Guarantees Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities. The Company guaranteed the operating partnership’s unsecured debt. Interest Expense The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations: Year Ended December 31, 2019 2018 2017 Gross interest expense (1) $ 115,845 $ 92,017 $ 94,660 Capitalized interest (16,258) (14,815) (10,655) Amortization of deferred financing costs and loan discount, net 6,258 5,965 6,032 INTEREST EXPENSE $ 105,845 $ 83,167 $ 90,037 _________________ 1. Includes interest on the Company’s debt and hedging activities, extinguishment costs related to paydowns in the term loans, and loan extinguishment costs of $744.0 thousand, $421.0 thousand and $1.1 million during the years ended December 31, 2019, 2018 and 2017, respectively. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company enters into derivatives in order to hedge interest rate risk. The Company had four interest rate swaps with aggregate notional amounts of $539.5 million as of December 31, 2019 and six interest rate swaps with aggregate notional amounts of $839.5 million as of December 31, 2018. These derivatives were designated as effective cash flow hedges for accounting purposes. The derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets. The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments. The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2019 and December 31, 2018: Underlying Debt Instrument # Hedges Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value (Liabilities)/Assets Low High 2019 2018 Met Park North 1 $ 64,500 August 2013 August 2020 3.71 % 3.71 % $ (195) $ 350 Term loan A (2) 2 300,000 July 2016 April 2020 2.65 % 3.06 % — 4,038 Term loan B (3) 2 350,000 April 2015 April 2022 2.96 % 3.46 % (1,596) 7,543 Term loan D (4) 1 125,000 June 2016 November 2022 2.63 % 3.13 % 479 4,756 TOTAL $ (1,312) $ 16,687 _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio as of December 31, 2019. 2. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 2.75% to 3.65%. The derivative was terminated on October 4, 2019. 3. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.36% to 4.31%. 4. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.03% to 3.98%. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million of senior notes due January 15, 2030. The net proceeds from the offering were used to repay the $300.0 million Term loan A due April 1, 2020, therefore, the derivative was terminated on October 4, 2019, which resulted in a cash payment of $393.9 thousand. In January 2019, the Company entered into a forward interest rate swap designated hedge. In February 2019, it was terminated, which resulted in a cash payment of approximately $1.6 million that was recorded in accumulated other comprehensive income on the Consolidated Balance Sheets and will be recognized over the life of the 4.65% registered senior notes entered into in February 2019 as an adjustment to interest expense. The cash payment is included in the payment of loan costs paid, net loan premium paid line item of the Consolidated Statements of Cash Flows. On January 1, 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. As a result of the adoption, the Company is no longer recognizing unrealized gains or losses related to ineffective portions of its derivatives. In 2018, the Company recognized a $231 thousand cumulative-effect adjustment to other comprehensive income, with a corresponding adjustment to the opening balance of retained earnings (accumulated deficit). The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of December 31, 2019, the Company expects $0.2 million of unrealized loss included in accumulated other comprehensive income will be reclassified as a reduction to interest expense in the next 12 months. |
U.S. Government Securities
U.S. Government Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
U.S. Government Securities | U.S. Government Securities The Company has U.S. Government securities of $140.7 million and $146.9 million as of December 31, 2019 and December 31, 2018, respectively. The One Westside and 10850 Pico properties acquisition in 2018 included the assumption of debt that was, in-substance, defeased through the purchase of U.S. Government-backed securities. The securities are investments held to maturity and are carried at amortized cost on the Consolidated Balance Sheets. As of December 31, 2019, the Company had $3.8 million of gross unrealized gains and no gross unrealized losses. The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date December 31, 2019: Carrying Value Fair Value Due in 1 year $ 5,632 $ 5,684 Due in 1 to 5 years 135,117 138,905 TOTAL $ 140,749 $ 144,589 |
Future Minimum Base Rents and L
Future Minimum Base Rents and Lease Payments | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Future Minimum Base Rents and Lease Payments | Future Minimum Base Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2020 to 2036. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2019: Year ended Non-cancellable Subject to early termination options Total (1) 2020 $ 575,685 $ 9,315 $ 585,000 2021 551,940 29,232 581,172 2022 502,765 41,275 544,040 2023 463,415 42,812 506,227 2024 414,430 22,353 436,783 Thereafter 1,668,069 156,607 1,824,676 TOTAL $ 4,176,304 $ 301,594 $ 4,477,898 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Future Minimum Lease Payments The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2019: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. Contingent rental expense is recorded in the period in which the contingent event becomes probable. The following table summarizes rental expense for ground leases and a corporate office lease: For the Year Ended December 31, 2019 2018 2017 Contingent rental expense $ 9,193 $ 10,740 $ 8,775 Minimum rental expense $ 19,900 $ 15,906 $ 12,412 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of December 31, 2019: For the Year Ended December 31, Ground Leases (1) 2020 $ 18,488 2021 18,609 2022 18,649 2023 18,434 2024 18,392 Thereafter 534,353 Total ground lease payments 626,925 Less: interest portion (354,224) Present value of lease liability $ 272,701 _____________ 1. In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of December 31, 2019. |
Future Minimum Base Rents and Lease Payments | Future Minimum Base Rents and Lease Payments The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2020 to 2036. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2019: Year ended Non-cancellable Subject to early termination options Total (1) 2020 $ 575,685 $ 9,315 $ 585,000 2021 551,940 29,232 581,172 2022 502,765 41,275 544,040 2023 463,415 42,812 506,227 2024 414,430 22,353 436,783 Thereafter 1,668,069 156,607 1,824,676 TOTAL $ 4,176,304 $ 301,594 $ 4,477,898 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. Future Minimum Lease Payments The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2019: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. Contingent rental expense is recorded in the period in which the contingent event becomes probable. The following table summarizes rental expense for ground leases and a corporate office lease: For the Year Ended December 31, 2019 2018 2017 Contingent rental expense $ 9,193 $ 10,740 $ 8,775 Minimum rental expense $ 19,900 $ 15,906 $ 12,412 The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of December 31, 2019: For the Year Ended December 31, Ground Leases (1) 2020 $ 18,488 2021 18,609 2022 18,649 2023 18,434 2024 18,392 Thereafter 534,353 Total ground lease payments 626,925 Less: interest portion (354,224) Present value of lease liability $ 272,701 _____________ 1. In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of December 31, 2019. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 479 $ — $ 479 $ — $ 16,687 $ — $ 16,687 Derivative liabilities (2) $ — $ (1,791) $ — $ (1,791) $ — $ — $ — $ — Non-real estate investment (1) $ — $ 5,545 $ — $ 5,545 $ — $ 2,713 $ — $ 2,713 _____________ 1. Included in the prepaid expenses and other assets, net line item in the Consolidated Balance Sheets. 2. Included in the accounts payable, accrued liabilities and other line item on the Consolidated Balance Sheets. Other Financial Instruments The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair value for investment in U.S. Government securities are estimates based on Level 1 inputs. Fair values for debt are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ 140,749 $ 144,589 $ 146,880 $ 147,686 Liabilities Unsecured debt (1) $ 2,475,000 $ 2,540,606 $ 2,275,000 $ 2,227,265 Secured debt (1) $ 370,459 $ 366,476 $ 365,381 $ 354,109 In-substance defeased debt $ 135,030 $ 134,936 $ 138,223 $ 135,894 Joint venture partner debt $ 66,136 $ 68,557 $ 66,136 $ 66,136 _____________ 1. Amounts represent debt excluding net deferred financing costs. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company’s 2010 Incentive Plan permits the Company’s board of directors (the “Board”) to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. As of December 31, 2019, 2.0 million common shares were available for grant under the 2010 Plan. The calculation of shares available for grant is determined after taking into account unvested restricted stock, unvested operating partnership performance units, unvested RSUs, awards under our one-time retention performance-based awards, and awards under our outstanding outperformance programs, assuming the maximum bonus pool eligible ultimately is earned and based on a stock price of $37.65. The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years. The Board awards time-based restricted shares or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the fourth quarter, and vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer. The compensation committee of our Board (the “Compensation Committee”) annually adopts a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under the 2010 Plan. With respect to OPP Plan awards granted through 2016, to the extent an award is earned following the completion of a three three two two two In December 2015, the Compensation Committee awarded a one-time special retention award to certain executives. The grants consist of time-based awards and performance-based awards. The time-based awards vest in equal 25% installments over a four four Time-Based Awards The stock-based compensation is valued based on the quoted closing price of the Company’s common stock on the applicable grant date and discounted for the hold restriction in accordance with ASC 718. The stock-based compensation is amortized through the final vesting period on a straight-line basis. Forfeitures of awards are recognized as they occur. Performance-Based Awards OPP Plan An award under the OPP Plan is ultimately earned to the extent the Company outperforms a predetermined total shareholder return (“TSR”) goal and/or achieves goals with respect to the outperformance of its peers in a particular REIT index. The ultimate aggregate award cannot exceed the predetermined maximum bonus pool. The following table outlines key components of the 2019 and 2018 OPP Plans: 2019 OPP Plan 2018 OPP Plan Maximum bonus pool, in millions $28.0 $25.0 Performance period 1/1/2019 to 12/31/2021 1/1/2018 to 12/31/2020 The stock-based compensation costs of the OPP Plans were valued in accordance with ASC 718, utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The stock-based compensation is amortized through the final vesting period under a graded vesting expense recognition schedule. Forfeitures of awards are recognized as they occur. The per unit fair value of OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: 2019 2018 2017 Expected price volatility for the Company 22.00% 20.00% 24.00% Expected price volatility for the particular REIT index 18.00% 18.00% 17.00% Risk-free rate 2.57% 2.37% 1.47% Dividend yield 3.00% 2.90% 2.30% One-Time Retention Awards At the end of each year in the four four The stock-based compensation costs were valued in accordance with ASC 718, utilizing a Monte Carlo simulation to estimate the probability of the performance vesting conditions being satisfied. The stock-based compensation is amortized through the final vesting period under a graded vesting expense recognition schedule. Forfeitures of awards are recognized as they occur. The per unit fair value of one-time retention award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: Assumptions Expected price volatility for the Company 23.00% Expected price volatility for the particular REIT index 18.00% Risk-free rate 1.63% Dividend yield 3.20% Summary of Unvested Share Activity The following table summarizes the activity and status of all unvested stock awards: 2019 2018 2017 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 703,796 $ 32.93 1,087,186 $ 33.64 887,179 $ 31.09 Granted 247,521 35.50 190,557 29.53 918,884 34.37 Vested (470,019) 32.88 (571,481) 32.74 (705,508) 31.42 Canceled (21,514) 34.16 (2,466) 33.38 (13,369) 32.14 Unvested at December 31 459,784 $ 33.67 703,796 $ 32.93 1,087,186 $ 33.64 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2019 247,521 $ 35.50 (470,019) $ 17,009 2018 190,557 $ 29.53 (571,481) $ 16,735 2017 918,884 $ 34.37 (705,508) $ 24,155 The following table summarizes the activity and status of all unvested time-based restricted operating partnership performance units: 2019 2018 Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Unvested at January 1 318,549 $ 28.41 — $ — Granted 481,215 35.74 318,549 28.41 Vested (191,085) 30.37 — — Canceled — — — — Unvested at December 31 608,679 $ 32.70 318,549 $ 28.41 Share-based Compensation Recorded The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2019 2018 2017 Expensed stock compensation (1) $ 19,481 $ 17,028 $ 15,079 Capitalized stock compensation (2) 951 1,097 836 Total stock compensation (3) $ 20,432 $ 18,125 $ 15,915 _________________ 1. Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. 2. Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Hudson Pacific Properties, Inc. The Company calculates basic earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based restricted stock awards and unvested OPP RSUs that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders: For the Year Ended December 31, 2019 2018 2017 Numerator: Basic net income available to common stockholders $ 42,725 $ 98,090 $ 67,587 Effect of dilutive instruments 331 — — Diluted net income available to common stockholders $ 43,056 $ 98,090 $ 67,587 Denominator: Basic weighted average common shares outstanding 154,404,427 155,445,247 153,488,730 Effect of dilutive instruments (1) 2,197,981 251,239 394,084 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 156,602,408 155,696,486 153,882,814 Basic earnings per common share $ 0.28 $ 0.63 $ 0.44 Diluted earnings per common share $ 0.28 $ 0.63 $ 0.44 _____________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. Hudson Pacific Properties, L.P. The Company calculates basic earnings per share by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income available to common unitholders for the period by the weighted average number of common units and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested OPP RSUs that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per unit for net income available to common unitholders: For the Year Ended December 31, 2019 2018 2017 Numerator: Basic and diluted net income available to common unitholders $ 42,954 $ 98,448 $ 67,962 Denominator: Basic weighted average common units outstanding 155,094,997 156,014,292 154,276,773 Effect of dilutive instruments (1) 1,017,605 251,239 394,084 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 156,112,602 156,265,531 154,670,857 Basic earnings per common unit $ 0.28 $ 0.63 $ 0.44 Diluted earnings per common unit $ 0.28 $ 0.63 $ 0.44 _____________ 1. The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Redeemable Non-Controlling Inte
Redeemable Non-Controlling Interest | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Redeemable Non-Controlling Interest | Redeemable Non-Controlling Interest Redeemable preferred units of the operating partnership As of December 31, 2019, there were 392,598 series A preferred units of partnership interest in the operating partnership, or series A preferred units, which are not owned by the Company. On April 16, 2018, 14,468 series A preferred units of partnership interest were redeemed for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends to, but not including, the date of redemption. These series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock. Redeemable non-controlling interest in consolidated real estate entities On March 1, 2018, the Company entered into a joint venture agreement with Macerich WSP, LLC (“Macerich”) to form HPP-MAC WSP, LLC (“HPP-MAC JV”). On August 31, 2018, Macerich contributed Westside Pavilion to the HPP-MAC JV. The Company has a 75% interest in the joint venture that owns the One Westside and 10850 Pico properties. The Company has a put right, after a specified time, to sell its interest at fair market value. Macerich has a put right, after a specified time, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building property. The Company has a 55% interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. Allianz has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. The put right is not currently redeemable. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. Once the redemption is probable, the carrying amount will be marked to market with the change in value reflected in additional paid-in capital. The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2018 $ 9,815 $ 113,141 Contributions — 14,128 Distributions — (15) Declared dividend (612) — Net income 612 (1,994) BALANCE AT DECEMBER 31, 2019 $ 9,815 $ 125,260 |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Equity | Equity The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive (loss) income (“OCI”): Derivative Instruments Currency Translation Adjustments Total Equity Balance at January 1, 2017 $ 9,496 $ — $ 9,496 Unrealized gain recognized in OCI 3,011 — 3,011 Reclassification from OCI into income 4,342 — 4,342 Net change in OCI 7,353 — 7,353 Reclassification related to the redemption of common units in the operating partnership (3,622) — (3,622) Balance at December 31, 2017 13,227 — 13,227 Unrealized gain recognized in OCI 7,331 — 7,331 Reclassification from OCI into income (3,287) — (3,287) Net change in OCI 4,044 — 4,044 Cumulative adjustment related to adoption for ASU 2017-12 230 — 230 Balance at December 31, 2018 17,501 — 17,501 Unrealized (loss) gain recognized in OCI (14,438) 1,830 (12,608) Reclassification from OCI into income (5,454) — (5,454) Net change in OCI (19,892) 1,830 (18,062) Balance at December 31, 2019 $ (2,391) $ 1,830 $ (561) The table below presents the activity related to Hudson Pacific Properties, LP’s accumulated OCI: Derivative Instruments Currency Translation Adjustments Total Equity Balance at January 1, 2017 $ 5,878 $ — $ 5,878 Unrealized gain recognized in OCI 3,029 — 3,029 Reclassification from OCI into income 4,369 — 4,369 Net change in OCI 7,398 — 7,398 Balance at December 31, 2017 13,276 — 13,276 Unrealized gain recognized in OCI 7,358 — 7,358 Reclassification from OCI into income (3,300) — (3,300) Net change in OCI 4,058 — 4,058 Cumulative adjustment related to adoption for ASU 2017-12 231 — 231 Balance at December 31, 2018 17,565 — 17,565 Unrealized (loss) gain recognized in OCI (14,533) 1,845 (12,688) Reclassification from OCI into income (5,490) — (5,490) Net change in OCI (20,023) 1,845 (18,178) Balance at December 31, 2019 $ (2,458) $ 1,845 $ (613) Non-controlling Interests Common units in the operating partnership Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of the Company’s common stock in exchange for common units on a one-for-one basis. Performance units in the operating partnership Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis. Current year activity The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units as of: December 31, 2019 December 31, 2018 December 31, 2017 Company-owned common units in the operating partnership 154,691,052 154,371,538 155,602,508 Company’s ownership interest percentage 99.4 % 99.6 % 99.6 % Non-controlling common units in the operating partnership (1) 911,858 569,045 569,045 Non-controlling ownership interest percentage 0.6 % 0.4 % 0.4 % _____________ 1. Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of December 31, 2019, this amount represents both common units and performance units of 550,969 and 360,889, respectively. As of December 31, 2018 and 2017, this amount represents common units of 569,045 . During the year ended December 31, 2019, 360,889 performance units were granted and vested related to the completion of the 2016 OPP performance period and the 2018 employee grants. The following table summarizes the common unit redemptions in 2019: Redemption Date Common Units January 17, 2019 18,076 No common unit redemptions were completed in 2018. For each of the redemptions above, the common unitholders requested the operating partnership repurchase common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemptions using the proceeds from registered underwritten public offering of common stock. Common Stock Activity The Company has not completed any common stock offerings in 2018 and 2019. The Company’s ATM program permits sales of up to $125.0 million of common stock. A cumulative total of $20.1 million has been sold as of December 31, 2019. No shares of common stock have been sold under the ATM program during the years ended December 31, 2019 and 2018. Share repurchase program There have been no repurchases in 2019. On March 8, 2018, the Board increased the authorized share repurchase program to a total of $250.0 million. In November 2018, the Company repurchased 1.6 million shares for a weighted average price of $30.48 per share for $50.0 million. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors. Dividends The Board declared dividends on a quarterly basis and the Company paid the dividends during the quarters in which the dividends were declared. The following table summarizes dividends declared and paid for the periods presented: For the Year Ended December 31, 2019 2018 2017 Common stock (1) $ 1.00 $ 1.00 $ 1.00 Common units (1) $ 1.00 $ 1.00 $ 1.00 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 _________________ 1. The fourth quarter 2019 dividends were paid on December 30, 2019 to shareholders and unitholders of record on December 20, 2019. Taxability of Dividends Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation. The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distributions Per Share Total Non-qualified (1) Qualified Return of Capital 3/18/2019 3/28/2019 $ 0.25000 $ 0.15752 $ 0.15752 $ — $ 0.09248 6/17/2019 6/27/2019 0.25000 0.15752 0.15752 — 0.09248 9/20/2019 9/30/2019 0.25000 0.15752 0.15752 — 0.09248 12/20/2019 12/30/2019 0.25000 0.15752 0.15752 — 0.09248 TOTALS $ 1.00000 $ 0.63008 $ 0.63008 $ — $ 0.36992 100.00 % 63.01 % 36.99 % _____________ |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment ReportingThe Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reporting segments: (i) office properties and (ii) studio properties. The Company evaluates performance based upon net operating income of the combined properties in each segment. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources, therefore, depreciation and amortization expense is not allocated among segments. The table below presents the operating activity of our reportable segments: Year Ended December 31, 2019 2018 2017 Office segment Total office revenues $ 733,735 $ 652,517 $ 667,110 Office expenses (256,209) (226,820) (218,873) Office segment profit 477,526 425,697 448,237 Studio segment Total studio revenues 84,447 75,901 61,029 Studio expenses (45,313) (40,890) (34,634) Studio segment profit 39,134 35,011 26,395 TOTAL SEGMENT PROFIT $ 516,660 $ 460,708 $ 474,632 Total revenues $ 818,182 $ 728,418 $ 728,139 Total segment expenses (301,522) (267,710) (253,507) TOTAL SEGMENT PROFIT $ 516,660 $ 460,708 $ 474,632 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Year Ended December 31, 2019 2018 2017 Total profit from all segments $ 516,660 $ 460,708 $ 474,632 General and administrative (71,947) (61,027) (54,459) Depreciation and amortization (282,088) (251,003) (283,570) Loss from unconsolidated real estate entity (747) — — Fee income 1,459 — — Interest expense (105,845) (83,167) (90,037) Interest income 4,044 1,718 97 Transaction-related expenses (667) (535) (598) Unrealized gain on non-real estate investments — 928 — Unrealized loss on ineffective portion of derivative instruments — — (70) Gains on sale of real estate 47,100 43,337 45,574 Impairment loss (52,201) — — Other income 78 822 2,992 Net income $ 55,846 $ 111,781 $ 94,561 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Employment Agreements The Company has entered into employment agreements with certain executive officers, effective January 1, 2016, that provide for various severance and change in control benefits and other terms and conditions of employment. Ferry Building Acquisition from Certain Affiliates of Blackstone On October 9, 2018, the Company entered into a joint venture with Allianz to purchase the Ferry Building from certain affiliates of Blackstone for $291.0 million before credits, prorations and closing costs. At the time of the transaction, Michael Nash, a senior managing director of an affiliate of Blackstone, was a director on our Board. Mr. Nash resigned from our Board on March 14, 2019. Disposal of Pinnacle I and Pinnacle II to certain affiliates of Blackstone On November 16, 2017, the consolidated joint venture that owned Pinnacle I and Pinnacle II sold the properties to certain affiliates of Blackstone for $350.0 million, before credits, prorations and closing costs, including the assumption of $216.0 million of secured debt. At the time of the transaction, Michael Nash, a senior managing director of an affiliate of Blackstone, was a director on our Board. Mr. Nash resigned from our Board on March 14, 2019. Disposal of 222 Kearny to certain affiliates of Farallon Funds On February 14, 2017, the Company sold its 222 Kearny property to a joint venture, a partner of which is an affiliate of the Farallon Funds for $51.8 million, before credits, prorations and closing costs. Richard B. Fried, a director on the Board, is a managing member of the Farallon Funds. JMG Capital Lease at 11601 Wilshire JMG Capital Management LLC leases approximately 6,638 square feet at the Company’s 11601 Wilshire property pursuant to an eight During 2017, JMG Capital Management LLC assigned the lease to a third party and as a result is no longer a lessee at our 11601 Wilshire property. Common Stock Offerings and Common Unit Redemptions On January 10, 2017, the Company, Blackstone and the Farallon Funds completed a public offering of 18,673,808 shares of common stock, consisting of 8,881,575 shares offered by the Company and 9,792,233 shares offered by the selling stockholders. The offering generated net proceeds for the Company and the selling stockholders of approximately $310.9 million and $342.7 million, respectively, before expenses. The Company used the net proceeds that it received from the offering to redeem 8,881,575 common units held by Blackstone and the Farallon Funds. The Company did not receive any proceeds from the sale of the common stock by the selling stockholders in the offerings described above but it paid approximately half of the expenses of the offerings with respect to the shares of common stock sold by the Farallon Funds and all of the expenses with respect to the shares of common stock sold by Blackstone, in each case, other than underwriting discounts, which were borne by the selling stockholders. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On October 5, 2018, the Company entered into an agreement to invest in a real estate technology venture capital fund. The Company is committed to funding up to $20.0 million. As of December 31, 2019, the Company has contributed $2.8 million to this fund with $17.2 million remaining to be contributed. Legal From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of December 31, 2019, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote. Letters of Credit |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Year Ended December 31, 2019 2018 2017 Cash paid for interest, net of capitalized interest $ 99,961 $ 78,495 $ 77,234 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (8,759) $ (13,431) $ (19,587) Reclassification of investment in unconsolidated entities for real estate investments $ — $ — $ 7,835 Assumption of debt in connection with property acquisitions $ — $ 139,003 $ — Redeemable non-controlling interest in consolidated real estate entities $ — $ 12,749 $ — Relief of debt in conjunction with sale of real estate $ — $ — $ (216,000) Proceeds from sale of real estate $ — $ — $ 216,000 Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Year Ended December 31, 2019 2018 2017 Cash paid for interest, net of capitalized interest $ 99,961 $ 78,495 $ 77,234 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (8,759) $ (13,431) $ (19,587) Reclassification of investment in unconsolidated entities for real estate investments $ — $ — $ 7,835 Assumption of debt in connection with property acquisitions $ — $ 139,003 $ — Redeemable non-controlling interest in consolidated real estate entities $ — $ 12,749 $ — Relief of debt in conjunction with sale of real estate $ — $ — $ (216,000) Proceeds from sale of real estate $ — $ — $ 216,000 |
Quarterly Financial Information
Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (unaudited) | Quarterly Financial Information (unaudited) The tables below present selected quarterly information for 2019 and 2018 for Hudson Pacific Properties, Inc.: For the Three Months Ended (1) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Total revenues $ 216,850 $ 208,218 $ 196,656 $ 197,389 Total operating expenses $ (172,798) $ (165,851) $ (158,385) $ (158,523) Net income (loss) $ 16,963 $ 62,955 $ 12,823 $ (36,895) Net income (loss) attributable to the Company’s stockholders $ 13,576 $ 58,755 $ 9,786 $ (39,392) Net income (loss) attributable to common stockholders per share—basic $ 0.09 $ 0.38 $ 0.06 $ (0.26) Net income (loss) attributable to common stockholders per share—diluted $ 0.09 $ 0.38 $ 0.06 $ (0.26) For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income attributable to the Company’s stockholders $ 15,944 $ 17,367 $ 16,202 $ 48,577 Net income attributable to common stockholders per share—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income attributable to common stockholders per share—diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 _____________ 1. The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding and reclassifications. The tables below present selected quarterly information for 2019 and 2018 for Hudson Pacific Properties, L.P.: For the Three Months Ended (1) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Total revenues $ 216,850 $ 208,218 $ 196,656 $ 197,389 Total operating expenses $ (172,798) $ (165,851) $ (158,385) $ (158,523) Net income (loss) $ 16,963 $ 62,955 $ 12,823 $ (36,895) Net income (loss) available to common unitholders $ 13,639 $ 59,029 $ 9,863 $ (39,577) Net income (loss) attributable to common unitholders per unit—basic $ 0.09 $ 0.38 $ 0.06 $ (0.26) Net income (loss) attributable to common unitholders per unit—diluted $ 0.09 $ 0.38 $ 0.06 $ (0.26) For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income (loss) available to common unitholders $ 16,003 $ 17,430 $ 16,261 $ 48,754 Net income (loss) attributable to common unitholders per unit—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income (loss) attributable to common unitholders per unit—diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 _____________ |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Hudson Pacific Properties, Inc. 2020 Performance Unit Plan The Compensation Committee approved performance unit grants to certain executives of the Company under the 2010 Plan effective on January 1, 2020. The grant consists of two portions. A portion of each performance unit award, the Relative TSR Performance Unit, is eligible to vest based on the achievement of the Company’s total shareholder return compared to the total shareholder return of the SNL U.S. REIT Office Index over a three one three |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III Real Estate and Accumulated Depreciation | Schedule III — Real Estate and Accumulated Depreciation December 31, 2019 (In thousands) Initial Costs Costs Capitalized Subsequent to Acquisition Total Costs Property name Encumbrances Land Building & Improvements Land Building & Improvements Total Accumulated Depreciation (1) Year Built / Renovated Year Acquired Office 875 Howard, San Francisco Bay Area, CA $ — $ 18,058 $ 41,046 $ 23,902 $ 18,058 $ 64,948 $ 83,006 $ (18,153) Various 2007 6040 Sunset, Los Angeles, CA — 6,599 27,187 28,167 6,599 55,354 61,953 (23,962) 2008 2008 ICON, Los Angeles, CA — — — 151,402 — 151,402 151,402 (16,149) 2017 2008 CUE, Los Angeles, CA — — — 45,603 — 45,603 45,603 (3,111) 2017 2008 EPIC, Los Angeles, CA — 10,606 — 186,054 10,606 186,054 196,660 (1,516) 2019 2008 Del Amo, Los Angeles, CA — — 18,000 2,868 — 20,868 20,868 (6,289) 1986 2010 1455 Market, San Francisco Bay Area, CA — 41,226 34,990 100,415 41,226 135,405 176,631 (42,853) 1976 2010 Rincon Center, San Francisco Bay Area, CA — 58,251 110,656 42,636 58,251 153,292 211,543 (35,797) 1940/1989 2010 10950 Washington, Los Angeles, CA 26,312 17,979 25,110 920 17,979 26,030 44,009 (6,007) 1957/1974 2010 604 Arizona, Los Angeles, CA — 5,620 14,745 4,453 5,620 19,198 24,818 (4,113) 1950/2005 2011 275 Brannan, San Francisco Bay Area, CA — 4,187 8,063 15,285 4,187 23,348 27,535 (9,214) 1905 2011 625 Second, San Francisco Bay Area, CA — 10,744 42,650 6,668 10,744 49,318 60,062 (11,379) 1906/1999 2011 6922 Hollywood, Los Angeles, CA — 16,608 72,392 20,335 16,608 92,727 109,335 (18,765) 1967 2011 10900 Washington, Los Angeles, CA — 1,400 1,200 141 1,400 1,341 2,741 (312) 1973 2012 901 Market, San Francisco Bay Area, CA — 17,882 79,305 15,318 17,882 94,623 112,505 (20,736) 1912/1985 2012 Element LA, Los Angeles, CA 168,000 79,769 19,755 95,891 79,769 115,646 195,415 (17,704) 1949 2012, 2013 3401 Exposition, Los Angeles, CA — 14,120 11,319 12,072 14,120 23,391 37,511 (4,756) 1961 2013 505 First, Greater Seattle, WA — 22,917 133,034 5,065 22,917 138,099 161,016 (26,618) Various 2013 83 King, Greater Seattle, WA — 12,982 51,403 10,487 12,982 61,890 74,872 (11,431) Various 2013 Met Park North, Greater Seattle, WA 64,500 28,996 71,768 1,203 28,996 72,971 101,967 (14,721) 2000 2013 Northview Center, Greater Seattle, WA — 4,803 41,191 2,878 4,803 44,069 48,872 (8,945) 1991 2013 411 First, Greater Seattle, WA — 27,684 29,824 18,821 27,684 48,645 76,329 (9,600) Various 2014 450 Alaskan, Greater Seattle, WA — — — 86,457 — 86,457 86,457 (5,556) Various 2014 95 Jackson, Greater Seattle, WA — — — 16,869 — 16,869 16,869 (1,816) Various 2014 Palo Alto Square, San Francisco Bay Area, CA — — 326,033 36,283 — 362,316 362,316 (59,597) 1971 2015 3400 Hillview, San Francisco Bay Area, CA — — 159,641 2,514 — 162,155 162,155 (34,698) 1991 2015 Foothill Research Center, San Francisco Bay Area, CA — — 133,994 4,955 — 138,949 138,949 (28,265) 1991 2015 Page Mill Center, San Francisco Bay Area, CA — — 147,625 6,748 — 154,373 154,373 (30,807) 1970/2016 2015 Clocktower Square, San Francisco Bay Area, CA — — 93,949 6,275 — 100,224 100,224 (12,184) 1983 2015 3176 Porter, San Francisco Bay Area, CA — — 34,561 864 — 35,425 35,425 (6,718) 1991 2015 Towers at Shore Center, San Francisco Bay Area, CA — 72,673 144,188 21,053 72,673 165,241 237,914 (23,781) 2001 2015 Skyway Landing, San Francisco Bay Area, CA — 37,959 63,559 4,211 37,959 67,770 105,729 (10,332) 2001 2015 Shorebreeze, San Francisco Bay Area, CA — 69,448 59,806 16,274 69,448 76,080 145,528 (12,350) 1985/1989 2015 Initial Costs Costs Capitalized Subsequent to Acquisition Total Costs Property name Encumbrances Land Building & Improvements Land Building & Improvements Total Accumulated Depreciation (1) Year Built / Renovated Year Acquired 555 Twin Dolphin, San Francisco Bay Area, CA — 40,614 73,457 11,025 40,614 84,482 125,096 (11,416) 1989 2015 333 Twin Dolphin, San Francisco Bay Area, CA — 36,441 64,892 19,820 36,441 84,712 121,153 (12,727) 1985 2015 Metro Center, San Francisco Bay Area, CA — — 313,683 57,635 — 371,318 371,318 (58,166) Various 2015 Concourse, San Francisco Bay Area, CA — 45,085 224,271 35,084 45,085 259,355 304,440 (39,772) Various 2015 Gateway, San Francisco Bay Area, CA — 33,117 121,217 44,513 33,117 165,730 198,847 (29,242) Various 2015 Metro Plaza, San Francisco Bay Area, CA — 16,038 106,156 25,650 16,038 131,806 147,844 (19,687) 1986 2015 1740 Technology, San Francisco Bay Area, CA — 8,052 49,486 3,302 8,052 52,788 60,840 (7,768) 1985 2015 Skyport Plaza, San Francisco Bay Area, CA — 29,033 153,844 2,575 29,033 156,419 185,452 (19,040) 2000/2001 2015 Techmart, San Francisco Bay Area, CA — — 66,660 19,320 — 85,980 85,980 (15,848) 1986 2015 Fourth & Traction, Los Angeles, CA — 12,140 37,110 62,495 12,140 99,605 111,745 (6,126) Various 2015 Maxwell, Los Angeles, CA — 13,040 26,960 57,449 13,040 84,409 97,449 (3,051) Various 2015 11601 Wilshire, Los Angeles, CA — 28,978 321,273 49,655 28,978 370,928 399,906 (37,408) 1983 2016, 2017 Hill7, Greater Seattle, WA 101,000 36,888 137,079 19,352 36,888 156,431 193,319 (16,605) 2015 2016 Page Mill Hill, San Francisco Bay Area, CA — — 131,402 7,641 — 139,043 139,043 (14,754) 1975 2016 Harlow, Los Angeles, CA (2) — 7,455 — 41,285 7,455 41,285 48,740 — N/A 2017 One Westside, Los Angeles, CA (3)(4) 5,646 110,438 35,011 44,339 110,438 79,350 189,788 — 1985 2018 10850 Pico, Los Angeles, CA (3)(4) — 34,682 16,313 (2,326) 34,682 13,987 48,669 (715) 1985 2018 Ferry Building, San Francisco Bay Area, CA (5) — — 268,292 15,505 — 283,797 283,797 (11,374) 1898/2003 2018 Studio Sunset Gower Studios, Los Angeles, CA (6) 5,001 79,320 64,697 41,549 79,320 106,246 185,566 (30,007) Various 2007, 2011, 2012 Sunset Bronson Studios, Los Angeles, CA (6) — 67,092 32,374 33,455 67,092 65,829 132,921 (16,900) Various 2008 Sunset Las Palmas Studios, Los Angeles, CA — 134,488 104,392 27,743 134,488 132,135 266,623 (9,438) Various 2017, 2018 TOTAL $ 370,459 $ 1,313,412 $ 4,345,563 $ 1,610,153 $ 1,313,412 $ 5,955,716 $ 7,269,128 $ (898,279) _____________ 1. The Company computes depreciation using the straight-line method over the estimated useful lives over the shorter of the ground lease term or 39 years for building and improvements, 15 years for land improvements and over the shorter of asset life or life of the lease for tenant improvements. 2. This asset is currently under development. 3. This property is encumbered by a construction loan with additional capacity of up to $414.6 million. See description of secured debt in Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 6 to the Consolidated Financial Statements-Debt.” 4. These properties have $135.0 million debt secured by U.S. Government securities. See description of the in-substance defeased debt in Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 6 to the Consolidated Financial Statements-Debt.” 5. This property has $66.1 million due to our joint venture partner. See description of joint venture partner debt in Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 6 to the Consolidated Financial Statements-Debt.” 6. The encumbrance amount relates to both Sunset Gower Studios and Sunset Bronson Studios. See description of secured debt in Part IV, Item 15(a) “Exhibits, Financial Statement Schedules—Note 6 to the Consolidated Financial Statements-Debt.” The aggregate gross cost of property included above for federal income tax purposes approximated $7.0 billion, unaudited as of December 31, 2019. The following table reconciles the historical cost of total real estate held for investment and accumulated depreciation from January 1, 2017 to December 31, 2019: Year Ended December 31, 2019 2018 2017 Total investment in real estate, beginning of year $ 7,059,537 $ 6,644,249 $ 6,507,484 Additions during period: Acquisitions — 505,257 255,848 Improvements, capitalized costs 395,390 364,721 330,809 Total additions during period 395,390 869,978 586,657 Deductions during period Disposal (fully depreciated assets and early terminations) (27,957) (27,821) (41,337) Impairment loss (52,201) — — Cost of property sold (105,641) (426,869) (408,555) Total deductions during period (185,799) (454,690) (449,892) Ending balance, before reclassification to assets associated with real estate held for sale 7,269,128 7,059,537 6,644,249 Reclassification to assets associated with real estate held for sale — — (424,888) Total investment in real estate, end of year $ 7,269,128 $ 7,059,537 $ 6,219,361 Total accumulated depreciation, beginning of year $ (695,631) $ (549,411) $ (423,950) Additions during period: Depreciation of real estate (235,097) (203,347) (206,838) Total additions during period (235,097) (203,347) (206,838) Deductions during period: Deletions 26,533 27,410 37,925 Write-offs due to sale 5,916 29,717 43,452 Total deductions during period 32,449 57,127 81,377 Ending balance, before reclassification to assets associated with real estate held for sale (898,279) (695,631) (549,411) Reclassification to assets associated with real estate held for sale — — 28,041 Total accumulated depreciation, end of year $ (898,279) $ (695,631) $ (521,370) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). Any references to the number of properties, acres and square footage are unaudited and outside the scope of the Company’s independent registered public accounting firm’s audit of the Company’s financial statements in accordance with the standards of the United States Public Company Accounting Oversight Board (“PCAOB”). |
Reclassification | Certain amounts in the consolidated financial statements for the prior periods have been reclassified to conform to the current year presentation. |
Principles of Consolidation | The consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements. Under the consolidation guidance, the Company first evaluates an entity using the variable interest model, then the voting model. The Company ultimately consolidates all entities that the Company controls through either majority ownership or voting rights, including all variable interest entities (“VIEs”) of which the Company is considered the primary beneficiary. The Company accounts for all other unconsolidated joint ventures using the equity method of accounting. In addition, the Company continually evaluates each legal entity that is not wholly owned for reconsideration based on changing circumstances. VIEs are defined as entities in which equity investors do not have: • the characteristics of a controlling financial interest; • sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties; and/or • the entity is structured with non-substantive voting rights. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, determining the incremental borrowing rate used in the present value calculations of its new or modified operating lessee agreements, its accrued liabilities, and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions, and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates. |
Investment in Real Estate Properties | Acquisitions The Company evaluates each acquisition to determine if the integrated set of assets and activities acquired meet the definition of a business and need to be accounted for as a business combination in accordance with ASC 805, Business Combinations . An integrated set of assets and activities would fail to qualify as a business if either (i) substantially all of the fair value of the gross assets acquired is concentrated in either a single identifiable asset or a group of similar identifiable assets or (ii) the integrated set of assets and activities is lacking, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs (i.e., revenue generated before and after the transaction). An acquired process is considered substantive if (i) the process includes an organized workforce (or includes an acquired contract that provides access to an organized workforce) that is skilled, knowledgeable and experienced in performing the process, (ii) the process cannot be replaced without significant cost, effort, or delay or (iii) the process is considered unique or scarce. Acquisitions of real estate will generally not meet the definition of a business because substantially all of the fair value is concentrated in a single identifiable asset or group of similar identifiable assets (i.e., land, buildings and improvements and related intangible assets or liabilities) or because the acquisition does not include a substantive process in the form of an acquired workforce or an acquired contract that cannot be replaced without significant cost, effort or delay. When the Company acquires properties that are considered business combinations, assets acquired and liabilities assumed are fair valued at the acquisition date. Assets acquired and liabilities assumed include, but are not limited to, land, building and improvements, intangible assets related to above- and below-market leases, intangible assets related to in-place leases, debt and other assumed assets and liabilities. The initial accounting for a business combination is based on management’s preliminary assessment, which may differ when final information becomes available. Subsequent adjustments made to the initial purchase price assignment are made within the measurement period, which typically does not exceed one year, within the Consolidated Balance Sheets. Acquisition-related expenses associated with business combinations are expensed in the period incurred which is included in the transaction-related expenses line item of the Consolidated Statements of Operations. When the Company acquires properties that are considered asset acquisitions, the purchase price is allocated based on relative fair value of the assets acquired and liabilities assumed. There is no measurement period concept for asset acquisitions, with the purchase price accounting being final in the period of acquisition. Additionally, acquisition-related expenses associated with asset acquisitions are capitalized as part of the purchase price. The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions. The fair value of tangible assets of an acquired property considers the value of the property as if it were vacant. The fair values of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers commissions, legal and other leasing related costs. The fair value debt assumed is based on the estimated cash flow projections utilizing interest rates available for the issuance of debt with similar terms and remaining maturities. Cost Capitalization The Company capitalizes costs associated with development and redevelopment activities, capital improvements, tenant improvements and leasing activity. Costs associated with development and redevelopment that are capitalized include interest, property taxes, insurance and other costs directly related and essential to the acquisition, development or construction of a real estate project. Indirect development costs, including salaries and benefits, office rent, and associated costs for those individuals directly responsible for and who spend their time on development activities are also capitalized and allocated to the projects to which they relate. Construction and development costs are capitalized while substantial activities are ongoing to prepare an asset for its intended use. The Company considers a construction project as substantially complete and held available for occupancy upon the completion of tenant improvements but no later than one year after cessation of major construction activity. Costs incurred after a project is substantially complete and ready for its intended use, or after development activities have ceased, are expensed as they are incurred. Costs previously capitalized that related to abandoned acquisitions or developments are charged to earnings. Expenditures for repairs and maintenance are expensed as they are incurred. |
Operating Properties | The properties are generally carried at cost, less accumulated depreciation and amortization. The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term The Company amortizes above- and below-market lease intangibles over the remaining non-cancellable lease terms and bargain renewal periods, if applicable. The in-place lease intangibles are amortized over the remaining non-cancellable lease term. When tenants vacate prior to the expiration of lease, the amortization of intangible assets and liabilities is accelerated. The Company amortizes above- and below-market ground lease intangibles over the remaining non-cancellable lease terms. |
Held for sale | The Company classifies properties as held for sale when certain criteria set forth in Accounting Standards Codification (“ASC”) 360, Property, Plant, and Equipment , are met. These criteria include (i) whether the Company is committed to a plan to sell, (ii) whether the asset or disposal group is available for immediate sale, (iii) whether an active program to locate a buyer and other actions required to complete the plan to sell have been initiated, (iv) whether the sale of the asset or disposal group is probable (i.e., likely to occur) and the transfer is expected to qualify for recognition as a completed sale within one year, (v) whether the long-lived asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, (vi) whether actions necessary to complete the plan indicate that it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. At the time a property is classified as held for sale, the Company reclassifies its assets and liabilities to held for sale in the Consolidated Balance Sheets for all periods presented and ceases recognizing depreciation expense. Properties held for sale are reported at the lower of their carrying value or their estimated fair value, less estimated costs to sell. According to ASC 205, Presentation of Financial Statements |
Impairment of Long-Lived Assets | The Company assesses the carrying value of real estate assets and related intangibles for impairment on a quarterly basis and whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable in accordance with GAAP. Impairment losses are recorded on real estate assets held for investment when indicators of impairment are present and the future undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. The Company recognizes impairment losses to the extent the carrying amount exceeds the fair value of the properties based on Level 1 or Level 2 inputs, less estimated costs to sell. During the year ended December 31, 2019, the Company recorded $52.2 million of impairment charges related to the Campus Center office property that was held for sale at March 31, 2019 and was subsequently sold. The Company’s estimated fair value was based on the sale price (Level 2 input). No impairment indicators have been noted and the Company recorded no impairment charges during the years ended December 31, 2018 and 2017. |
Goodwill | Goodwill represents the excess of acquisition cost over the fair value of net tangible and identifiable intangible assets acquired and liabilities assumed in business acquisitions. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. |
Cash, Cash Equivalents and Restricted Cash | Cash and cash equivalents are defined as cash on hand and in banks, plus all short-term investments with a maturity of three months or less when purchased. Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The Company maintains some of its cash in bank deposit accounts that, at times, may exceed the federally insured limit. No losses have been experienced related to such accounts. |
Receivables | The Company’s accounting policy and methodology used to assess collectability related to rental revenues changed on January 1, 2019 when the Company adopted ASC 842. The guidance requires the Company to assess, at lease commencement and subsequently, collectability from its tenants of future lease payments. If the Company determines collectability is not probable, it recognizes an adjustment to lower income from rentals, whereas previously the Company recognized bad debt expense. In addition, for amounts deemed probable of collection, the Company also may record an allowance under other authoritative GAAP based on the evaluation of individual receivables, including specific credit enhancements and other relevant factors. |
U.S. Government Securities | The Company holds U.S. Government securities related to assumed debt held by a trust subsidiary. These securities are considered held to maturity investments and are carried at amortized cost on the Consolidated Balance Sheets. The Company has both the intent and ability to hold to maturity. |
Non-Real Estate Investments | The Company holds investments in an entity that does not report NAV. The Company marks this investment to fair value based on Level 2 inputs, whenever fair value is readily available or observable. The Company also invests in an entity that reports NAV. The investment, which is in a real estate technology venture capital fund, involves a commitment of funding from the Company of up to $20.0 million. The Company uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value for the investment. As of December 31, 2019, the Company has contributed $2.8 million to this fund with $17.2 million remaining to be contributed. There has been no change in NAV since the initial investment. Changes in fair value are included in the unrealized gain on non-real estate investment line item on the Consolidated Statements of Operations. No gain or loss has been recognized due to observable changes in fair value for the year ended December 31, 2019. To date, the Company has recognized an unrealized gain of $928 thousand related to observable changes in fair value, which was recognized in the second quarter of 2018. |
Lease Accounting and Recently Issued Accounting Pronouncements | In February 2016, the FASB issued guidance codified in ASC 842, Leases (“ASC 842”), which amends the guidance in former ASC 840, Leases (“ASC 840”). The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a lease agreement (i.e., lessees and lessors). The new standard increases transparency and comparability most significantly by requiring the recognition by lessees of right-of-use (“ROU”) assets and lease liabilities on the balance sheet for those leases classified as operating leases. The Company adopted ASC 842 on January 1, 2019 using the modified retrospective transition approach that must be applied for leases that exist or are entered into after January 1, 2019. ASC 842 requires companies to identify lease and non-lease components of a lease agreement. Lease components relate to the right to use the leased asset whereas non-lease components relate to payments for goods or services that are transferred separately from the right to use the underlying asset. ASC 842 provides transition practical expedients that must be elected together, which allows relief from the requirement to (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases that are in effect as of the date of adoption. The guidance also permits an entity to elect a practical expedient that provides relief from the requirement to assess whether an existing or expired land easement that was not previously accounted for as a lease under ASC 840 is considered a lease under ASC 842. For lessors, the guidance provides for a practical expedient, by class of underlying asset, to elect a combined single lease component presentation if (i) the timing and pattern of the transfer of the combined single lease component is the same, and (ii) the related lease component, if accounted for separately, would be classified as an operating lease. The Company elected the practical expedients above. The lessor practical expedient to combine lease and non-lease components was elected only for the Company’s leases related to the office properties. For the Company’s studio properties, the timing and pattern of the transfer of the lease components and non-lease components for studio properties are not the same and therefore the Company did not elect this practical expedient for the Company’s studio properties. The standalone selling price related to the studio non-lease components is readily available and does not require estimates. In May 2018, the Financial Accounting Standards Board (“FASB”) issued ASU 2018-16, Derivatives and Hedging (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes. The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the UST, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate, and the SIFMA Municipal Swap Rate. The Company adopted this guidance during the first quarter of 2019 using the prospective approach. The adoption did not have an impact on the Consolidated Financial Statements since LIBOR is still in use, however, this is expected to have an impact in later periods once SOFR is adopted. In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial instruments by requiring companies to recognize an allowance for expected losses, rather than incurred losses as required currently by the other-than-temporary impairment model. The accounting standard will apply to our non-real-estate investments and the Company’s receivables related to service revenues. This standard applies to net investments in leases resulting from sales-type or direct financing leases recognized by a lessor and does not apply to the receivables arising from operating leases, which are accounted for under ASC 842. The accounting standard is effective for reporting periods beginning after December 15, 2019, with early adoption permitted, and will be applied as a cumulative adjustment to retained earnings as of the effective date. The effect on the Company’s consolidated financial statements will largely depend on the composition and credit quality of our financial investments and the economic conditions at the time of adoption. The Company will adopt this standard on January 1, 2020. The adoption will not have a material impact on the Consolidated Financial Statements. |
Lessee Accounting | The Company determines if an arrangement is a lease at inception. The Company’s operating lease agreements relate to ground lease assets and are reflected in operating lease ROU assets and operating lease liabilities on the Consolidated Balance Sheets. For leases with a term of 12 months or less the Company made an accounting policy election by class of underlying asset not to recognize ROU assets and lease liabilities. The Company recognizes lease expense for such leases generally on a straight-line basis over the lease term.ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. As the Company’s leases do not provide an implicit rate, the Company determines its incremental borrowing rate based on the information available at commencement date, or the date of the ASC 842 adoption, in determining the present value of lease payments. The weighted average incremental borrowing rate used to calculate the ROU assets and liabilities was 5.7%. ROU assets also include any lease payments made and exclude lease incentives. Many of the Company’s lessee agreements include options to extend the lease, which the Company does not include in its minimum lease terms unless the option is reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The weighted average remaining lease term, as of December 31, 2019, was 32 years. |
Lessor Accounting | As a lessor, the Company’s recognition of revenue remained consistent with previous guidance, apart from the narrower definition of initial direct costs that can be capitalized. With the election of the lessor practical expedient, the presentation of revenues on the Consolidated Statement of Operations has changed to reflect a single lease component that combines rental, tenant recoveries, and other tenant-related revenues for the office portfolio. For the Company’s rentals at the studio properties, total lease consideration is allocated to lease and non-lease components on a relative standalone basis. The recognition of revenues related to lease components is governed by ASC 842, while revenue related to non-lease components is subject to ASC 606, Revenue from Contracts with Customers (“ASC 606”). The new standard defines initial direct costs as only the incremental costs of signing a lease. Internal direct compensation costs and external legal fees related to the execution of successful lease agreements that no longer meet the definition of initial direct costs under ASC 842 are accounted for as office operating expense or studio operating expense in the Company’s Consolidated Statements of Operations. Additionally, the Company may elect the practical expedients only for leases that have commenced before the effective date of the adoption of ASC 842. As a result of the adoption, the Company recognized $1.8 million as a cumulative adjustment to accumulated deficit for costs associated with leases that have not commenced as of January 1, 2019, that were previously capitalized and no longer meet the definition of initial direct costs in accordance with ASC 842. The Company recognized $0.3 million as cumulative adjustments to accumulated deficit related to other transition adjustments. |
Revenue Recognition | The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location (1) Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate _________________ 1. The financial statement locations stated above are for the year ended December 31, 2019, after the adoption of ASC 842, and do not reflect the locations for the year ended December 31, 2018. The Company’s 2019 revenues are accounted for under ASU 842 while the 2018 and 2017 rental revenues are accounted for under ASC 840. The Company continues to recognize rental revenue from tenants on a straight-line basis over the lease term when collectability is probable and the tenant has taken possession of or controls the physical use of the leased asset. If the lease provides for tenant improvements, the Company determines whether the tenant improvements, for accounting purposes, are owned by the tenant or the Company. When the Company is the owner of the tenant improvements, the tenant is not considered to have taken physical possession or have control of the physical use of the leased asset until the tenant improvements are substantially completed. When the tenant is the owner of the tenant improvements, any tenant improvement allowance that is funded is treated as a lease incentive and amortized as a reduction of revenue over the lease term. Tenant improvement ownership is determined based on various factors including, but not limited to: • whether the lease stipulates how and on what a tenant improvement allowance may be spent; • whether the tenant or landlord retains legal title to the improvements at the end of the lease term; • whether the tenant improvements are unique to the tenant or general-purpose in nature; and • whether the tenant improvements are expected to have any residual value at the end of the lease. The Company recognizes tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance, and other operating expenses are recognized as revenue in the period during which the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Company is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Other tenant-related revenues includes parking stipulated in lease agreements as must-take parking rentals. These revenues are recognized over the term of the lease. Ancillary revenues and guest parking revenues have been accounted for under ASC 606 since the Company adopted this standard on January 1, 2018. This standard requires the Company to recognize revenues based on a five-step model and results in the consideration being recognized once the performance obligations are satisfied. These revenues have single performance obligations and are recognized at the point in time when services are rendered. The timing and pattern of revenue recognition as it relates to ancillary revenues and guest parking revenues have not changed from those under ASC 605, Revenue Recognition. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Year Ended December 31, 2019 2018 2017 Ancillary revenues $ 27,951 $ 24,138 $ 18,899 Other revenues $ 28,066 $ 25,298 $ 23,204 Studio-related tenant recoveries (1) $ 2,261 N/A N/A _________________ 1. Studio-related tenant recoveries are accounted for under ASC 606 effective January 1, 2019. The following table summarizes the Company’s receivables that are accounted for under ASC 606: December 31, 2019 December 31, 2018 Ancillary revenues $ 1,652 $ 3,752 Other revenues $ 2,417 $ 959 Studio-related tenant recoveries (1) $ 26 N/A _________________ 1. Studio-related tenant recoveries are accounted for under ASC 606 effective January 1, 2019. |
Deferred Financing Costs and Debt Discount/Premium | Deferred financing costs are amortized over the contractual loan term into interest expense on the Consolidated Statements of Operations. Deferred financing costs, and related amortization, related to the unsecured revolving credit facility and undrawn term loans are presented within prepaid expenses and other assets, net in the Consolidated Balance Sheets. All other deferred financing costs, and related amortization, are included within the respective debt line item in the Consolidated Balance Sheets. Debt discounts and premiums are amortized and accreted on a straight-line basis over the contractual loan term, which approximates the effective interest method, into interest expense on the Consolidated Statements of Operations. Discounts are recorded as additional interest expense and premiums are recorded as a reduction to interest expense. |
Derivative Instruments | The Company manages interest rate risk associated with borrowings by entering into derivative instruments. The Company recognizes all derivative instruments on the Consolidated Balance Sheets on a gross basis at fair value. Derivative instruments that are not effective hedges are adjusted to fair value and the changes in fair value are reflected as income or expense. If the derivative instrument is an effective hedge, depending on the nature of the hedge, changes in the fair value are either offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings, or recognized in other comprehensive income (loss), which is a component of equity. In 2018, the Company early adopted ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. As a result of the adoption, the Company no longer recognizes unrealized gains or losses related to ineffective portions of derivatives in earnings. |
Stock-Based Compensation | Compensation cost of restricted stock, restricted stock units and performance units under the Company’s equity incentive award plans are accounted for under ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company accounts for forfeitures of awards as they occur. With the adoption of ASU 2018-07, Compensation, in 2018, share-based payments granted to non-employees are accounted for in the same manner as share-based payments granted to employees. |
Income Taxes | The Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market, Hill7 and Ferry Building properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) commencing with its taxable year ended December 31, 2010. The Company believes that it has operated in a manner that has allowed the Company to qualify as a REIT for federal income tax purposes commencing with such taxable year, and the Company intends to continue operating in such manner. To qualify as a REIT, the Company is required to distribute at least 90% of its net taxable income, excluding net capital gains, to the Company’s stockholders and to meet the various other requirements imposed by the Code relating to such matters as operating results, asset holdings, distribution levels and diversity of stock ownership. Provided that it continues to qualify for taxation as a REIT, the Company is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders. If the Company fails to qualify as a REIT in any taxable year, and is unable to avail itself of certain savings provisions set forth in the Code, all of its taxable income would be subject to federal income tax at regular corporate rates, including any applicable alternative minimum tax. Unless entitled to relief under specific statutory provisions, the Company would be ineligible to elect to be treated as a REIT for the four taxable years following the year for which the Company loses its qualification. It is not possible to state whether in all circumstances the Company would be entitled to this statutory relief. The Company may acquire direct or indirect interests in one or more Subsidiary REITs. A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to the Company. If a subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to federal income tax, (ii) shares in such REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless the Company could avail itself of certain relief provisions. The Company believes that its operating partnership is properly treated as a partnership for federal income tax purposes. As a partnership, the Company’s operating partnership is not subject to federal income tax on its income. Instead, each of its partners, including the Company, is allocated, and may be required to pay tax with respect to, its share of the operating partnership’s income. As such, no provision for federal income taxes has been included for the operating partnership. The Company has elected, together with two of the Company’s subsidiaries, to treat such subsidiaries as taxable REIT subsidiaries (“TRS”) for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. The Company’s TRS did not have significant tax provisions or deferred income tax items for 2019, 2018 or 2017. The Company is subject to the statutory requirements of the states in which it conducts business. The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of December 31, 2019, the Company has not established a liability for uncertain tax positions. The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2015. Generally, the Company has assessed its tax positions for all open years, which include 2015 to 2018, and concluded that there are no material uncertainties to be recognized. |
Fair Value of Assets and Liabilities | Under GAAP, the Company is required to measure certain financial instruments at fair value on a recurring basis. In addition, the Company is required to measure other financial instruments and balances at fair value on a non-recurring basis (e.g., carrying value of impaired real estate and long-lived assets). Fair value is defined as the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories: • Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; • Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and • Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. When available, the Company utilizes quoted market prices from an independent third-party source to determine fair value and classifies such items in Level 1 or Level 2. In instances where the market for a financial instrument is not active, regardless of the availability of a nonbinding quoted market price, observable inputs might not be relevant and could require the Company to make a significant adjustment to derive a fair value measurement. Additionally, in an inactive market, a market price quoted from an independent third party may rely more on models with inputs based on information available only to that independent third party. When the Company determines the market for a financial instrument owned by the Company to be illiquid or when market transactions for similar instruments do not appear orderly, the Company uses several valuation sources (including internal valuations, discounted cash flow analysis and quoted market prices) and establishes a fair value by assigning weights to the various valuation sources. Changes in assumptions or estimation methodologies can have a material effect on these estimated fair values. In this regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, may not be realized in an immediate settlement of the instrument. The Company considers the following factors to be indicators of an inactive market: (i) there are few recent transactions, (ii) price quotations are not based on current information, (iii) price quotations vary substantially either over time or among market makers (for example, some brokered markets), (iv) indexes that previously were highly correlated with the fair values of the asset or liability are demonstrably uncorrelated with recent indications of fair value for that asset or liability, (v) there is a significant increase in implied liquidity risk premiums, yields, or performance indicators (such as delinquency rates or loss severities) for observed transactions or quoted prices when compared with the Company’s estimate of expected cash flows, considering all available market data about credit and other nonperformance risk for the asset or liability, (vi) there is a wide bid-ask spread or significant increase in the bid-ask spread, (vii) there is a significant decline or absence of a market for new issuances (that is, a primary market) for the asset or liability or similar assets or liabilities, and (viii) little information is released publicly (for example, a principal-to-principal market). The Company considers the following factors to be indicators of non-orderly transactions: (i) there was not adequate exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities under current market conditions, (ii) there was a usual and customary marketing period, but the seller marketed the asset or liability to a single market participant, (iii) the seller is in or near bankruptcy or receivership (that is, distressed), or the seller was required to sell to meet regulatory or legal requirements (that is, forced), and (iv) the transaction price is an outlier when compared with other recent transactions for the same or similar assets or liabilities. |
Organization (Tables)
Organization (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Company's portfolio | The Company’s portfolio consists of properties located throughout Northern and Southern California, the Pacific Northwest and Western Canada. The following table summarizes the Company’s portfolio as of December 31, 2019: Segments Number of Properties Square Feet (unaudited) Consolidated portfolio Office 51 13,373,338 Studio 3 1,224,403 Land 6 2,231,376 Total consolidated portfolio 60 16,829,117 Unconsolidated portfolio (1) Office 1 1,477,142 Land 1 450,000 Total unconsolidated portfolio 2 1,927,142 TOTAL (2) 62 18,756,259 _________________ 1. The Company purchased, pursuant to a co-ownership agreement with an affiliate of Blackstone Property Partners Lower Fund 1 LP (“Blackstone”), the Bentall Centre property located in Vancouver, Canada. The Company owns 20% of this joint venture. The square footage shown above represents 100% of the property. For further detail regarding the Bentall Centre property, see Note 4. 2. Includes redevelopment and development properties. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities | As of December 31, 2019, the operating partnership has determined that four of its joint ventures met the definition of a VIE and are consolidated: Entity Property Ownership Interest Hudson 1455 Market, L.P. 1455 Market 55.0 % Hudson 1099 Stewart, L.P. Hill7 55.0 % HPP-MAC WSP, LLC One Westside and 10850 Pico 75.0 % Hudson One Ferry REIT, L.P. Ferry Building 55.0 % |
Schedule of Costs Capitalized | The Company recognized the following capitalized costs: Year Ended December 31, 2019 2018 2017 Capitalized personnel costs $ 9,218 $ 12,233 $ 10,853 Capitalized interest 16,258 14,815 10,655 |
Schedule of Property, Plant and Equipment Useful Lives | The Company computes depreciation and amortization using the straight-line method over the estimated useful lives of the assets as represented in the table below: Asset Description Estimated useful life (years) Building and improvements Shorter of the ground lease term or 39 Land improvements 15 Furniture and fixtures 5 to 7 Tenant improvements Shorter of the estimated useful life or the lease term |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2019 2018 2017 BEGINNING OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 END OF THE PERIOD Cash and cash equivalents $ 46,224 $ 53,740 $ 78,922 Restricted cash 12,034 14,451 22,358 TOTAL $ 58,258 $ 68,191 $ 101,280 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented: December 31, 2019 2018 2017 BEGINNING OF THE PERIOD Cash and cash equivalents $ 53,740 $ 78,922 $ 83,015 Restricted cash 14,451 22,358 25,177 TOTAL $ 68,191 $ 101,280 $ 108,192 END OF THE PERIOD Cash and cash equivalents $ 46,224 $ 53,740 $ 78,922 Restricted cash 12,034 14,451 22,358 TOTAL $ 58,258 $ 68,191 $ 101,280 |
Schedule of Accounts Receivable Net of Allowance for Uncollectible Tenant Receivables | The following table represents the Company’s accounts receivable, net as of: December 31, 2019 December 31, 2018 Accounts receivable $ 13,007 $ 16,494 Allowance for doubtful accounts — (2,490) ACCOUNTS RECEIVABLE, NET $ 13,007 $ 14,004 Straight-line Rent Receivables, net The following table represents the Company’s straight - line rent receivables, net as of: December 31, 2019 December 31, 2018 Straight-line rent receivables $ 195,328 $ 142,369 Allowance for doubtful accounts — — STRAIGHT-LINE RENT RECEIVABLES, NET $ 195,328 $ 142,369 |
Schedule of Prepaid Expenses and Other Assets, Net | The following table represents the Company’s prepaid expenses and other assets, net as of: December 31, 2019 December 31, 2018 Derivative assets $ 479 $ 16,687 Goodwill 8,754 8,754 Non-real estate investments 5,545 2,713 Deposits for future acquisitions 22,405 1,750 Deferred financing costs 3,246 3,296 Prepaid insurance 3,463 3,014 Prepaid property tax 2,070 1,919 Other 23,012 17,500 PREPAID EXPENSES AND OTHER ASSETS, NET $ 68,974 $ 55,633 |
Schedule of Revenue Streams | The Company has compiled an inventory of its sources of revenues and has identified the following material revenue streams: (i) rental revenues (ii) tenant recoveries and other tenant-related revenues (iii) ancillary revenues (iv) other revenues and (v) sale of real estate. Revenue Stream Components Financial Statement Location (1) Rental revenues Office rentals, stage rentals and storage rentals Office and studio segments: rental Tenant recoveries and other tenant-related revenues Reimbursement of real estate taxes, insurance, repairs and maintenance, other operating expenses and must-take parking revenues Office segment: rental Ancillary revenues Revenues derived from tenants’ use of lighting, equipment rental, power, HVAC and telecommunications (i.e., telephone and internet) Studio segment: service revenues and other Other revenues Parking revenue that is not associated with lease agreements and other Office and studio segments: service revenues and other Sale of real estate Gains on sales derived from cash consideration less cost basis Gains on sale of real estate _________________ 1. The financial statement locations stated above are for the year ended December 31, 2019, after the adoption of ASC 842, and do not reflect the locations for the year ended December 31, 2018. The following table summarizes the Company’s revenue streams that are accounted for under ASC 606: Year Ended December 31, 2019 2018 2017 Ancillary revenues $ 27,951 $ 24,138 $ 18,899 Other revenues $ 28,066 $ 25,298 $ 23,204 Studio-related tenant recoveries (1) $ 2,261 N/A N/A _________________ 1. Studio-related tenant recoveries are accounted for under ASC 606 effective January 1, 2019. The following table summarizes the Company’s receivables that are accounted for under ASC 606: December 31, 2019 December 31, 2018 Ancillary revenues $ 1,652 $ 3,752 Other revenues $ 2,417 $ 959 Studio-related tenant recoveries (1) $ 26 N/A _________________ |
Investment in Real Estate (Tabl
Investment in Real Estate (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Investment in Real Estate | The following table summarizes the Company’s investment in real estate, at cost as of: December 31, 2019 December 31, 2018 Land $ 1,313,412 $ 1,372,872 Building and improvements 5,189,342 4,991,770 Tenant improvements 631,459 510,217 Furniture and fixtures 10,693 9,320 Property under development 124,222 175,358 INVESTMENT IN REAL ESTATE, AT COST $ 7,269,128 $ 7,059,537 | |
Real Estate Acquisitions | The following table summarizes the information on the acquisitions completed in 2018: Property Submarket Segment Date of Acquisition Square Feet Purchase Price (1) (in millions) 6605 Eleanor Avenue (2) Hollywood Studio 6/7/2018 22,823 $ 18.0 1034 Seward Street (2) Hollywood Studio 6/7/2018 18,673 12.0 One Westside and 10850 Pico (3) West Los Angeles Office 8/31/2018 595,987 190.0 Ferry Building (4) San Francisco Office 10/9/2018 268,018 291.0 6660 Santa Monica (2) Hollywood Studio 10/23/2018 11,200 10.0 TOTAL ACQUISITIONS IN 2018 916,701 $ 521.0 _____________ 1. Represents purchase price before certain credits, prorations and closing costs. 2. The properties are adjacent to, and now form part of, the Sunset Las Palmas Studios property and consist of sound stages, production office and support space. 3. The Company owns 75% of the ownership interest in the consolidated joint venture that owns these properties. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. 4. The Company owns 55% of the ownership interest in the consolidated joint venture that owns this property. The acquisition was primarily funded by a draw under the unsecured revolving credit facility. | |
Real Estate Acquisitions, Allocation of Consideration | The following table represents the Company’s final purchase price accounting, as of the respective acquisition dates, for each of the Company’s acquisitions completed in 2018: 6605 Eleanor Avenue 1034 Seward Street One Westside and 10850 Pico Ferry Building 6660 Santa Monica Total Total consideration Cash consideration for real estate investments $ 18,071 $ 12,095 $ 40,986 $ 281,180 $ 10,355 $ 362,687 Cash consideration for U.S. Government securities — — 149,176 — — 149,176 Debt assumed — — 139,003 — — 139,003 Redeemable non-controlling interest in consolidated real estate entities — — 12,749 — — 12,749 TOTAL CONSIDERATION $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 Allocation of consideration Investment in real estate $ 18,071 $ 12,095 $ 196,444 $ 268,292 $ 10,355 $ 505,257 U.S. Government securities — — 149,176 — — 149,176 Deferred leasing costs and in-place lease intangibles (1) — — 826 17,586 — 18,412 Above-market leases (2) — — 605 742 — 1,347 Below-market ground lease (3) — — — 4,528 — 4,528 Below-market leases (4) — — (5,137) (9,968) — (15,105) TOTAL $ 18,071 $ 12,095 $ 341,914 $ 281,180 $ 10,355 $ 663,615 _____________ 1. Represents weighted-average amortization period of 6.9 years (before any renewal or extension options). 2. Represents weighted-average amortization period of 5.1 years (before any renewal or extension options). 3. Represents weighted-average amortization period of 48.6 years. | |
Real Estate Dispositions | The following table summarizes the properties sold in 2019, 2018 and 2017. These properties were considered non-strategic to the Company’s portfolio: Property Segment Date of Disposition Square Feet Sales Price (1) (in millions) Campus Center Office Office 7/24/2019 471,580 $ 70.3 Campus Center Land Office 7/30/2019 946,350 78.1 TOTAL DISPOSITIONS IN 2019 1,417,930 $ 148.4 Embarcadero Place Office 1/25/2018 197,402 $ 136.0 2600 Campus Drive (building 6 of Peninsula Office Park) Office 1/31/2018 63,050 22.5 2180 Sand Hill Office 3/1/2018 45,613 82.5 9300 Wilshire Office 4/10/2018 61,422 13.8 Peninsula Office Park Office 7/27/2018 447,739 210.0 TOTAL DISPOSITIONS IN 2018 815,226 $ 464.8 222 Kearny Office 2/14/2017 148,797 $ 51.8 3402 Pico Office 3/21/2017 50,687 35.0 Pinnacle I and Pinnacle II Office 11/16/2017 623,777 350.0 TOTAL DISPOSITIONS IN 2017 823,261 $ 436.8 _____________ 1. Represents gross sales price before certain credits, prorations and closing costs. |
Investment in Unconsolidated _2
Investment in Unconsolidated Real Estate Entity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information of Unconsolidated Real Estate Entity | The summarized balance sheet of the Company’s unconsolidated real estate entity represents the combined entities for Bentall Centre as of December 31, 2019: December 31, 2019 ASSETS Investment in real estate, net $ 794,321 Other Assets 51,597 TOTAL ASSETS 845,918 LIABILITIES Secured debt, net 480,127 Other liabilities 42,672 TOTAL LIABILITIES 522,799 Company’s capital (1) 64,624 Partner's capital 258,495 TOTAL CAPITAL 323,119 TOTAL LIABILITIES AND CAPITAL $ 845,918 _____________ 1. To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in loss form unconsolidated real estate entity on the Consolidated Statements of Operations. The summarized statement of operation of the Company’s unconsolidated real estate entity represents the combined entities for Bentall Centre for the June 5, 2019 acquisition date through December 31, 2019: Year Ended December 31, 2019 TOTAL REVENUES $ 41,687 TOTAL EXPENSES (46,434) NET LOSS $ (4,747) |
Deferred Leasing Costs and Le_2
Deferred Leasing Costs and Lease Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets and Liabilities | The following summarizes the Company’s deferred leasing costs and lease intangibles as of: December 31, 2019 December 31, 2018 Deferred leasing costs and in-place lease intangibles $ 359,215 $ 336,535 Accumulated amortization (136,816) (123,432) Deferred leasing costs and in-place lease intangibles, net 222,399 213,103 Below-market ground leases 72,916 72,916 Accumulated amortization (11,436) (8,932) Below-market ground leases, net 61,480 63,984 Above-market leases 8,015 8,425 Accumulated amortization (6,446) (5,616) Above-market leases, net 1,569 2,809 DEFERRED LEASING COSTS AND LEASE INTANGIBLE ASSETS, NET $ 285,448 $ 279,896 Below-market leases $ 87,064 $ 101,736 Accumulated amortization (56,447) (57,043) Below-market leases, net 30,617 44,693 Above-market ground leases 1,095 1,095 Accumulated amortization (219) (176) Above-market ground leases, net 876 919 LEASE INTANGIBLE LIABILITIES, NET $ 31,493 $ 45,612 |
Schedule of Amortization During Period | The Company recognized the following amortization related to deferred leasing costs and lease intangibles: For the Year Ended December 31, 2019 2018 2017 Deferred leasing costs and in-place lease intangibles (1) $ (45,177) $ (46,690) $ (72,883) Below-market ground leases (2) $ (2,503) $ (2,465) $ (2,548) Above-market leases (3) $ (1,240) $ (1,550) $ (6,953) Below-market leases (3) $ 14,076 $ 19,143 $ 25,015 Above-market ground leases (2) $ 43 $ 43 $ 43 _____________ 1. Amortization is recorded in depreciation and amortization expenses and office rental revenues in the Consolidated Statements of Operations. 2. Amortization is recorded in office operating expenses in the Consolidated Statements of Operations. 3. Amortization is recorded in revenues in the Consolidated Statements of Operations. |
Schedule of Future Amortization Expense | The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2019: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2020 $ (36,485) $ (2,504) $ (594) $ 10,220 $ 43 2021 (30,115) (2,504) (412) 7,298 43 2022 (23,739) (2,504) (245) 4,719 43 2023 (19,423) (2,504) (217) 3,807 43 2024 (13,981) (2,504) (95) 1,804 43 Thereafter (98,656) (48,960) (6) 2,769 661 TOTAL $ (222,399) $ (61,480) $ (1,569) $ 30,617 $ 876 |
Schedule of Estimated Amortization Income | The following table provides information regarding the Company’s estimated amortization of deferred leasing costs and lease intangibles as of December 31, 2019: For the Year Ended December 31, Deferred lease cost and in-place lease intangibles Below-market ground lease Above-market lease Below-market lease Above-market ground lease 2020 $ (36,485) $ (2,504) $ (594) $ 10,220 $ 43 2021 (30,115) (2,504) (412) 7,298 43 2022 (23,739) (2,504) (245) 4,719 43 2023 (19,423) (2,504) (217) 3,807 43 2024 (13,981) (2,504) (95) 1,804 43 Thereafter (98,656) (48,960) (6) 2,769 661 TOTAL $ (222,399) $ (61,480) $ (1,569) $ 30,617 $ 876 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | The following table sets forth information with respect to our outstanding indebtedness: December 31, 2019 December 31, 2018 Interest Rate (1) Contractual Maturity Date UNSECURED AND SECURED DEBT Unsecured debt Unsecured revolving credit facility (2)(3) $ 75,000 $ 400,000 LIBOR + 1.05% to 1.50% 3/13/2022 (4) Term loan A (2)(5) — 300,000 LIBOR + 1.20% to 1.70% 4/1/2020 (9) Term loan B (2)(6) 350,000 350,000 LIBOR + 1.20% to 1.70% 4/1/2022 Term loan C (2) — 75,000 LIBOR + 1.30% to 2.20% 11/17/2020 Term loan D (2)(7) 125,000 125,000 LIBOR + 1.20% to 1.70% 11/17/2022 Series A notes 110,000 110,000 4.34% 1/2/2023 Series B notes 259,000 259,000 4.69% 12/16/2025 Series C notes 56,000 56,000 4.79% 12/16/2027 Series D notes 150,000 150,000 3.98% 7/6/2026 Series E notes 50,000 50,000 3.66% 9/15/2023 3.95% Registered senior notes 400,000 400,000 3.95% 11/1/2027 4.65% Registered senior notes (8) 500,000 — 4.65% 4/1/2029 3.25% Registered senior notes (9) 400,000 — 3.25% 1/15/2030 Total unsecured debt 2,475,000 2,275,000 Secured debt Met Park North (10) 64,500 64,500 LIBOR + 1.55% 8/1/2020 10950 Washington (11) 26,312 26,880 5.32% 3/11/2022 One Westside and 10850 Pico (12) 5,646 — LIBOR + 1.70% 12/18/2023 (4) Revolving Sunset Bronson Studios/ICON/CUE facility (13) 5,001 — LIBOR + 1.35% 3/1/2024 Element LA 168,000 168,000 4.59% 11/6/2025 Hill7 (14) 101,000 101,000 3.38% 11/6/2028 Sunset Gower Studios/Sunset Bronson Studios — 5,001 LIBOR + 2.25% 3/4/2019 Total secured debt 370,459 365,381 Total unsecured and secured debt 2,845,459 2,640,381 Unamortized deferred financing costs/loan discounts (15) (27,549) (16,546) TOTAL UNSECURED AND SECURED DEBT, NET $ 2,817,910 $ 2,623,835 IN-SUBSTANCE DEFEASED DEBT (16) $ 135,030 $ 138,223 4.47% 10/1/2022 JOINT VENTURE PARTNER DEBT (17) $ 66,136 $ 66,136 4.50% 10/9/2028 _____________ 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 December 31, 2019, which may be different than the interest rates as of December 31, 2018 for corresponding indebtedness. 2. The rate is based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of December 31, 2019, no such election had been made. 3. The Company has a total capacity of $600.0 million under its unsecured revolving credit facility. 4. The maturity date may be extended once for an additional one 5. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.65% to 3.06% per annum through the use of two interest rate swaps. See Note 7 for details. Term loan A was paid off on October 3, 2019. 6. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.96% to 3.46% per annum through the use of two interest rate swaps. See Note 7 for details. 7. The interest rate on the outstanding balance of the term loan was effectively fixed at 2.63% to 3.13% per annum through the use of an interest rate swap. See Note 7 for details. 8. On February 27, 2019, the operating partnership completed an underwritten public offering of $350.0 million of senior notes, which were issued at a discount at 98.663% of par. On June 14, 2019, the operating partnership completed an additional underwritten public offering of $150.0 million of senior notes, which were issued at a premium at 104.544% of par. These notes are treated as a single series of securities with an aggregate principal amount of $500.0 million. 9. On October 3, 2019, the operating partnership completed an underwritten public offering of $400.0 million in senior notes due January 15, 2030. The notes were issued at 99.268% of par value, with a coupon of 3.25%. The net proceeds from the offering were used to repay the $300.0 million five 10. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap. See Note 7 for details. 11. Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity. 12. The Company has the ability to draw up to $414.6 million under the construction loan secured by the One Westside and 10850 Pico properties. 13. The Company has a total capacity of $235.0 million under the Sunset Bronson Studios/ICON/CUE revolving credit facility. This loan is secured by the Company’s Sunset Bronson Studios, ICON and CUE properties. 14. The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. This loan bears interest only at 3.38% until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity. 15. Excludes deferred financing costs related to establishing the Company’s unsecured revolving credit facility and Sunset Bronson Studios/ICON/CUE revolving credit facility, which are reflected in prepaid and other assets, net line item in the Consolidated Balance Sheets. See Note 2 for details. 16. The Company owns 75% of the ownership interest in the joint venture that owns the One Westside and 10850 Pico properties. The full amount of the loan is separately presented on the balance sheet. Monthly debt service includes annual debt amortization payments based on a 10-year amortization schedule with a balloon payment at maturity. two |
Schedule of Maturities of Long-term Debt | The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (before the impact of extension options, if applicable) as of December 31, 2019: For the Year Ended December 31, Unsecured and Secured Debt In-Substance Defeased Debt Joint Venture Partner Debt 2020 $ 65,095 $ 3,323 $ — 2021 632 3,494 — 2022 575,085 128,213 — 2023 165,646 — — 2024 5,001 — — Thereafter 2,034,000 — 66,136 TOTAL $ 2,845,459 $ 135,030 $ 66,136 |
Schedule of Balance and Key Terms of the Unsecured Revolving Credit Facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of: December 31, 2019 December 31, 2018 Outstanding borrowings $ 75,000 $ 400,000 Remaining borrowing capacity 525,000 200,000 TOTAL BORROWING CAPACITY $ 600,000 $ 600,000 Interest rate (1) LIBOR + 1.05% to 1.50% Annual facility fee rate (1) 0.15% or 0.30% Contractual maturity date (2) 3/13/2022 _________________ 1. The rate is based on the operating partnership’s leverage ratio. The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of December 31, 2019, no such election had been made. 2. The maturity date may be extended once for an additional one |
Summary of Existing Covenants and Their Covenant Levels | The following table summarizes existing covenants and their covenant levels related to our unsecured revolving credit facility, term loans and note purchase agreements, when considering the most restrictive terms: Covenant Ratio Covenant Level Actual Performance Total liabilities to total asset value ≤ 60% 35.4% Unsecured indebtedness to unencumbered asset value ≤ 60% 41.4% Adjusted EBITDA to fixed charges ≥ 1.5x 3.5x Secured indebtedness to total asset value ≤ 45% 5.6% Unencumbered NOI to unsecured interest expense ≥ 2.0x 3.4x The following table summarizes existing covenants and their covenant levels related to our registered senior notes: Covenant Ratio (1) Covenant Level Actual Performance Debt to total assets ≤ 60% 38.2% Total unencumbered assets to unsecured debt ≥ 150% 246.9% Consolidated income available for debt service to annual debt service charge ≥ 1.5x 3.8x Secured debt to total assets ≤ 45% 6.0% _________________ 1. The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.95% Senior Notes and 4.65% Senior Notes based on the financial results as of December 31, 2019. |
Reconciliation of Gross Interest Expense and Interest Expense | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations: Year Ended December 31, 2019 2018 2017 Gross interest expense (1) $ 115,845 $ 92,017 $ 94,660 Capitalized interest (16,258) (14,815) (10,655) Amortization of deferred financing costs and loan discount, net 6,258 5,965 6,032 INTEREST EXPENSE $ 105,845 $ 83,167 $ 90,037 _________________ 1. Includes interest on the Company’s debt and hedging activities, extinguishment costs related to paydowns in the term loans, and loan extinguishment costs of $744.0 thousand, $421.0 thousand and $1.1 million during the years ended December 31, 2019, 2018 and 2017, respectively. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of December 31, 2019 and December 31, 2018: Underlying Debt Instrument # Hedges Notional Amount Effective Date Maturity Date Interest Rate Range (1) Fair Value (Liabilities)/Assets Low High 2019 2018 Met Park North 1 $ 64,500 August 2013 August 2020 3.71 % 3.71 % $ (195) $ 350 Term loan A (2) 2 300,000 July 2016 April 2020 2.65 % 3.06 % — 4,038 Term loan B (3) 2 350,000 April 2015 April 2022 2.96 % 3.46 % (1,596) 7,543 Term loan D (4) 1 125,000 June 2016 November 2022 2.63 % 3.13 % 479 4,756 TOTAL $ (1,312) $ 16,687 _____________ 1. The rate is based on the fixed rate from the swap and the spread based on the operating partnership’s leverage ratio as of December 31, 2019. 2. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 2.75% to 3.65%. The derivative was terminated on October 4, 2019. 3. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.36% to 4.31%. 4. On March 13, 2018, the underlying debt instrument that was hedged was amended. Prior to the amendment, the interest rate was effectively fixed at 3.03% to 3.98%. |
U.S. Government Securities (Tab
U.S. Government Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Carrying Value and Fair Value of Securities | The following table summarizes the carrying value and fair value of the Company’s securities by the contractual maturity date December 31, 2019: Carrying Value Fair Value Due in 1 year $ 5,632 $ 5,684 Due in 1 to 5 years 135,117 138,905 TOTAL $ 140,749 $ 144,589 |
Future Minimum Base Rents and_2
Future Minimum Base Rents and Lease Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Future Minimum Base Rents Receivable | The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of December 31, 2019: Year ended Non-cancellable Subject to early termination options Total (1) 2020 $ 575,685 $ 9,315 $ 585,000 2021 551,940 29,232 581,172 2022 502,765 41,275 544,040 2023 463,415 42,812 506,227 2024 414,430 22,353 436,783 Thereafter 1,668,069 156,607 1,824,676 TOTAL $ 4,176,304 $ 301,594 $ 4,477,898 _____________ 1. Excludes rents under leases at the Company’s studio properties with terms of one year or less. |
Ground Lease Terms for Properties Held | The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term non-cancellable ground lease obligations as of December 31, 2019: Property Expiration Date Notes 3400 Hillview 10/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in consumer price index (“CPI”) from October 1989. Thereafter, minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. Clocktower Square 9/26/2056 The ground rent is minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”). Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Del Amo 6/30/2049 Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease. Ferry Building Various The land on which the building is situated is subject to a ground lease agreement that expires on April 1, 2067. The minimum annual rent (adjusted every 5 years) is the prior year’s minimum annual rent plus cumulative increase in CPI with a floor of 10% and a cap of 20%. Additionally, the parking lot is subject to a separate ground lease agreement that expires on April 1, 2023. The minimum annual rent adjusts each year for changes in CPI with a floor of 2% and a cap of 4%. The parking lot is subject to automatic renewals for 10-year periods at market. Foothill Research Center 6/30/2039 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Percentage annual rent is gross income multiplied by 24.125%. 3176 Porter 7/31/2040 The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent, which resets annually, is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%. In no event rent can be less then the specific amount prescribed in the ground lease agreement. Metro Center 4/29/2054 Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and adjusts to reflect the change in CPI from the preceding FMV adjustment date (since 2013). The CPI adjustment has a floor of the previous minimum rent. The Company has an option to extend the ground lease for four additional periods of 11 years each. Page Mill Center 11/30/2041 The ground rent is minimum annual rent (adjusted on January 1, 2019 and January 1, 2029) plus 25% of AGI, less minimum annual rent. Minimum rent adjustments adds 60% of the average annual participation rent payable over five years. Annual participation is the excess of 25% of AGI over the minimum annual rent for a given lease year. Page Mill Hill 11/17/2049 The ground rent is minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years. Minimum rent adjustments add 60% of the average annual percentage rent for the previous 7 years. Palo Alto Square 11/30/2045 The ground rent is minimum annual rent (adjusted every 10 years starting January 1, 2022) plus 25% of AGI less minimum annual rent. The minimum annual rent adjustments add 50% of the average annual percentage rent from the previous 5 years. Sunset Gower Studios 3/31/2060 Every 7 years rent adjusts to 7.5% of FMV of the land. Techmart 5/31/2053 Rent subject to a 10% increase every 5 years. The Company has an option to extend the ground lease for two additional periods of 10 years each. |
Rental Expense | The following table summarizes rental expense for ground leases and a corporate office lease: For the Year Ended December 31, 2019 2018 2017 Contingent rental expense $ 9,193 $ 10,740 $ 8,775 Minimum rental expense $ 19,900 $ 15,906 $ 12,412 |
Future Minimum Lease Payments Due | The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of December 31, 2019: For the Year Ended December 31, Ground Leases (1) 2020 $ 18,488 2021 18,609 2022 18,649 2023 18,434 2024 18,392 Thereafter 534,353 Total ground lease payments 626,925 Less: interest portion (354,224) Present value of lease liability $ 272,701 _____________ 1. In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of December 31, 2019. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities, Recurring | The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of: December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Derivative assets (1) $ — $ 479 $ — $ 479 $ — $ 16,687 $ — $ 16,687 Derivative liabilities (2) $ — $ (1,791) $ — $ (1,791) $ — $ — $ — $ — Non-real estate investment (1) $ — $ 5,545 $ — $ 5,545 $ — $ 2,713 $ — $ 2,713 _____________ 1. Included in the prepaid expenses and other assets, net line item in the Consolidated Balance Sheets. 2. Included in the accounts payable, accrued liabilities and other line item on the Consolidated Balance Sheets. |
Fair Value Measurements, Recurring and Nonrecurring | The table below represents the carrying value and fair value of the Company’s investment in securities and debt as of: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Assets U.S. Government securities $ 140,749 $ 144,589 $ 146,880 $ 147,686 Liabilities Unsecured debt (1) $ 2,475,000 $ 2,540,606 $ 2,275,000 $ 2,227,265 Secured debt (1) $ 370,459 $ 366,476 $ 365,381 $ 354,109 In-substance defeased debt $ 135,030 $ 134,936 $ 138,223 $ 135,894 Joint venture partner debt $ 66,136 $ 68,557 $ 66,136 $ 66,136 _____________ 1. Amounts represent debt excluding net deferred financing costs. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Key Components of OPP Plan | The following table outlines key components of the 2019 and 2018 OPP Plans: 2019 OPP Plan 2018 OPP Plan Maximum bonus pool, in millions $28.0 $25.0 Performance period 1/1/2019 to 12/31/2021 1/1/2018 to 12/31/2020 |
Schedule of Valuation Assumptions | The per unit fair value of OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: 2019 2018 2017 Expected price volatility for the Company 22.00% 20.00% 24.00% Expected price volatility for the particular REIT index 18.00% 18.00% 17.00% Risk-free rate 2.57% 2.37% 1.47% Dividend yield 3.00% 2.90% 2.30% The per unit fair value of one-time retention award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation: Assumptions Expected price volatility for the Company 23.00% Expected price volatility for the particular REIT index 18.00% Risk-free rate 1.63% Dividend yield 3.20% |
Summary of Activity and Status of Unvested Stock Awards | The following table summarizes the activity and status of all unvested stock awards: 2019 2018 2017 Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Shares Weighted-Average Grant-Date Fair Value Unvested at January 1 703,796 $ 32.93 1,087,186 $ 33.64 887,179 $ 31.09 Granted 247,521 35.50 190,557 29.53 918,884 34.37 Vested (470,019) 32.88 (571,481) 32.74 (705,508) 31.42 Canceled (21,514) 34.16 (2,466) 33.38 (13,369) 32.14 Unvested at December 31 459,784 $ 33.67 703,796 $ 32.93 1,087,186 $ 33.64 Year Ended December 31, Non-Vested Shares Issued Weighted Average Grant-Date Fair Value Vested Shares Total Vest-Date Fair Value (in thousands) 2019 247,521 $ 35.50 (470,019) $ 17,009 2018 190,557 $ 29.53 (571,481) $ 16,735 2017 918,884 $ 34.37 (705,508) $ 24,155 |
Summary of Activity and Status of Unvested Performance Units | The following table summarizes the activity and status of all unvested time-based restricted operating partnership performance units: 2019 2018 Units Weighted-Average Grant-Date Fair Value Units Weighted-Average Grant-Date Fair Value Unvested at January 1 318,549 $ 28.41 — $ — Granted 481,215 35.74 318,549 28.41 Vested (191,085) 30.37 — — Canceled — — — — Unvested at December 31 608,679 $ 32.70 318,549 $ 28.41 |
Stock-Based Compensation Related to Company's Awards | The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards: For the Year Ended December 31, 2019 2018 2017 Expensed stock compensation (1) $ 19,481 $ 17,028 $ 15,079 Capitalized stock compensation (2) 951 1,097 836 Total stock compensation (3) $ 20,432 $ 18,125 $ 15,915 _________________ 1. Amounts are recorded in general and administrative expenses in the Consolidated Statements of Operations. 2. Amounts are recorded in deferred leasing costs and lease intangible assets, net and investment in real estate, at cost in the Consolidated Balance Sheets. 3. Amounts are recorded in additional paid-in capital and non-controlling interest—units in the operating partnership in the Consolidated Balance Sheets. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders: For the Year Ended December 31, 2019 2018 2017 Numerator: Basic net income available to common stockholders $ 42,725 $ 98,090 $ 67,587 Effect of dilutive instruments 331 — — Diluted net income available to common stockholders $ 43,056 $ 98,090 $ 67,587 Denominator: Basic weighted average common shares outstanding 154,404,427 155,445,247 153,488,730 Effect of dilutive instruments (1) 2,197,981 251,239 394,084 DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 156,602,408 155,696,486 153,882,814 Basic earnings per common share $ 0.28 $ 0.63 $ 0.44 Diluted earnings per common share $ 0.28 $ 0.63 $ 0.44 _____________ 1. The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per unit for net income available to common unitholders: For the Year Ended December 31, 2019 2018 2017 Numerator: Basic and diluted net income available to common unitholders $ 42,954 $ 98,448 $ 67,962 Denominator: Basic weighted average common units outstanding 155,094,997 156,014,292 154,276,773 Effect of dilutive instruments (1) 1,017,605 251,239 394,084 DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING 156,112,602 156,265,531 154,670,857 Basic earnings per common unit $ 0.28 $ 0.63 $ 0.44 Diluted earnings per common unit $ 0.28 $ 0.63 $ 0.44 _____________ 1. The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation. |
Redeemable Non-Controlling In_2
Redeemable Non-Controlling Interest (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Non-controlling Interests | The following table reconciles the beginning and ending balances of redeemable non-controlling interests: Series A Redeemable Preferred Units Consolidated Entities Balance at December 31, 2018 $ 9,815 $ 113,141 Contributions — 14,128 Distributions — (15) Declared dividend (612) — Net income 612 (1,994) BALANCE AT DECEMBER 31, 2019 $ 9,815 $ 125,260 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive (loss) income (“OCI”): Derivative Instruments Currency Translation Adjustments Total Equity Balance at January 1, 2017 $ 9,496 $ — $ 9,496 Unrealized gain recognized in OCI 3,011 — 3,011 Reclassification from OCI into income 4,342 — 4,342 Net change in OCI 7,353 — 7,353 Reclassification related to the redemption of common units in the operating partnership (3,622) — (3,622) Balance at December 31, 2017 13,227 — 13,227 Unrealized gain recognized in OCI 7,331 — 7,331 Reclassification from OCI into income (3,287) — (3,287) Net change in OCI 4,044 — 4,044 Cumulative adjustment related to adoption for ASU 2017-12 230 — 230 Balance at December 31, 2018 17,501 — 17,501 Unrealized (loss) gain recognized in OCI (14,438) 1,830 (12,608) Reclassification from OCI into income (5,454) — (5,454) Net change in OCI (19,892) 1,830 (18,062) Balance at December 31, 2019 $ (2,391) $ 1,830 $ (561) The table below presents the activity related to Hudson Pacific Properties, LP’s accumulated OCI: Derivative Instruments Currency Translation Adjustments Total Equity Balance at January 1, 2017 $ 5,878 $ — $ 5,878 Unrealized gain recognized in OCI 3,029 — 3,029 Reclassification from OCI into income 4,369 — 4,369 Net change in OCI 7,398 — 7,398 Balance at December 31, 2017 13,276 — 13,276 Unrealized gain recognized in OCI 7,358 — 7,358 Reclassification from OCI into income (3,300) — (3,300) Net change in OCI 4,058 — 4,058 Cumulative adjustment related to adoption for ASU 2017-12 231 — 231 Balance at December 31, 2018 17,565 — 17,565 Unrealized (loss) gain recognized in OCI (14,533) 1,845 (12,688) Reclassification from OCI into income (5,490) — (5,490) Net change in OCI (20,023) 1,845 (18,178) Balance at December 31, 2019 $ (2,458) $ 1,845 $ (613) |
Schedule of Other Ownership Interests | The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units as of: December 31, 2019 December 31, 2018 December 31, 2017 Company-owned common units in the operating partnership 154,691,052 154,371,538 155,602,508 Company’s ownership interest percentage 99.4 % 99.6 % 99.6 % Non-controlling common units in the operating partnership (1) 911,858 569,045 569,045 Non-controlling ownership interest percentage 0.6 % 0.4 % 0.4 % _____________ 1. Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of December 31, 2019, this amount represents both common units and performance units of 550,969 and 360,889, respectively. As of December 31, 2018 and 2017, this amount represents common units of 569,045 |
Schedule of Stock Redemptions | The following table summarizes the common unit redemptions in 2019: Redemption Date Common Units January 17, 2019 18,076 |
Schedule of Dividends | The following table summarizes dividends declared and paid for the periods presented: For the Year Ended December 31, 2019 2018 2017 Common stock (1) $ 1.00 $ 1.00 $ 1.00 Common units (1) $ 1.00 $ 1.00 $ 1.00 Series A preferred units (1) $ 1.5625 $ 1.5625 $ 1.5625 _________________ 1. The fourth quarter 2019 dividends were paid on December 30, 2019 to shareholders and unitholders of record on December 20, 2019. |
Schedule of Dividends Taxability | The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited): Ordinary Dividends Record Date Payment Date Distributions Per Share Total Non-qualified (1) Qualified Return of Capital 3/18/2019 3/28/2019 $ 0.25000 $ 0.15752 $ 0.15752 $ — $ 0.09248 6/17/2019 6/27/2019 0.25000 0.15752 0.15752 — 0.09248 9/20/2019 9/30/2019 0.25000 0.15752 0.15752 — 0.09248 12/20/2019 12/30/2019 0.25000 0.15752 0.15752 — 0.09248 TOTALS $ 1.00000 $ 0.63008 $ 0.63008 $ — $ 0.36992 100.00 % 63.01 % 36.99 % _____________ |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The table below presents the operating activity of our reportable segments: Year Ended December 31, 2019 2018 2017 Office segment Total office revenues $ 733,735 $ 652,517 $ 667,110 Office expenses (256,209) (226,820) (218,873) Office segment profit 477,526 425,697 448,237 Studio segment Total studio revenues 84,447 75,901 61,029 Studio expenses (45,313) (40,890) (34,634) Studio segment profit 39,134 35,011 26,395 TOTAL SEGMENT PROFIT $ 516,660 $ 460,708 $ 474,632 Total revenues $ 818,182 $ 728,418 $ 728,139 Total segment expenses (301,522) (267,710) (253,507) TOTAL SEGMENT PROFIT $ 516,660 $ 460,708 $ 474,632 The table below is a reconciliation of the total profit from all segments to net income attributable to common stockholders: Year Ended December 31, 2019 2018 2017 Total profit from all segments $ 516,660 $ 460,708 $ 474,632 General and administrative (71,947) (61,027) (54,459) Depreciation and amortization (282,088) (251,003) (283,570) Loss from unconsolidated real estate entity (747) — — Fee income 1,459 — — Interest expense (105,845) (83,167) (90,037) Interest income 4,044 1,718 97 Transaction-related expenses (667) (535) (598) Unrealized gain on non-real estate investments — 928 — Unrealized loss on ineffective portion of derivative instruments — — (70) Gains on sale of real estate 47,100 43,337 45,574 Impairment loss (52,201) — — Other income 78 822 2,992 Net income $ 55,846 $ 111,781 $ 94,561 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental schedule of cash flow information | Supplemental cash flow information for Hudson Pacific Properties, Inc. is included as follows: Year Ended December 31, 2019 2018 2017 Cash paid for interest, net of capitalized interest $ 99,961 $ 78,495 $ 77,234 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (8,759) $ (13,431) $ (19,587) Reclassification of investment in unconsolidated entities for real estate investments $ — $ — $ 7,835 Assumption of debt in connection with property acquisitions $ — $ 139,003 $ — Redeemable non-controlling interest in consolidated real estate entities $ — $ 12,749 $ — Relief of debt in conjunction with sale of real estate $ — $ — $ (216,000) Proceeds from sale of real estate $ — $ — $ 216,000 Supplemental cash flow information for Hudson Pacific Properties, L.P. is included as follows: Year Ended December 31, 2019 2018 2017 Cash paid for interest, net of capitalized interest $ 99,961 $ 78,495 $ 77,234 Non-cash investing and financing activities Accounts payable and accrued liabilities for real estate investments $ (8,759) $ (13,431) $ (19,587) Reclassification of investment in unconsolidated entities for real estate investments $ — $ — $ 7,835 Assumption of debt in connection with property acquisitions $ — $ 139,003 $ — Redeemable non-controlling interest in consolidated real estate entities $ — $ 12,749 $ — Relief of debt in conjunction with sale of real estate $ — $ — $ (216,000) Proceeds from sale of real estate $ — $ — $ 216,000 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The tables below present selected quarterly information for 2019 and 2018 for Hudson Pacific Properties, Inc.: For the Three Months Ended (1) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Total revenues $ 216,850 $ 208,218 $ 196,656 $ 197,389 Total operating expenses $ (172,798) $ (165,851) $ (158,385) $ (158,523) Net income (loss) $ 16,963 $ 62,955 $ 12,823 $ (36,895) Net income (loss) attributable to the Company’s stockholders $ 13,576 $ 58,755 $ 9,786 $ (39,392) Net income (loss) attributable to common stockholders per share—basic $ 0.09 $ 0.38 $ 0.06 $ (0.26) Net income (loss) attributable to common stockholders per share—diluted $ 0.09 $ 0.38 $ 0.06 $ (0.26) For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income attributable to the Company’s stockholders $ 15,944 $ 17,367 $ 16,202 $ 48,577 Net income attributable to common stockholders per share—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income attributable to common stockholders per share—diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 _____________ 1. The summation of the quarterly financial data may not equal the annual number reported on the consolidated statements of operations due to rounding and reclassifications. The tables below present selected quarterly information for 2019 and 2018 for Hudson Pacific Properties, L.P.: For the Three Months Ended (1) December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Total revenues $ 216,850 $ 208,218 $ 196,656 $ 197,389 Total operating expenses $ (172,798) $ (165,851) $ (158,385) $ (158,523) Net income (loss) $ 16,963 $ 62,955 $ 12,823 $ (36,895) Net income (loss) available to common unitholders $ 13,639 $ 59,029 $ 9,863 $ (39,577) Net income (loss) attributable to common unitholders per unit—basic $ 0.09 $ 0.38 $ 0.06 $ (0.26) Net income (loss) attributable to common unitholders per unit—diluted $ 0.09 $ 0.38 $ 0.06 $ (0.26) For the Three Months Ended (1) December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Total revenues $ 198,433 $ 180,698 $ 175,169 $ 174,118 Total operating expenses $ (157,021) $ (144,310) $ (139,388) $ (139,021) Net income $ 19,257 $ 20,270 $ 19,691 $ 52,563 Net income (loss) available to common unitholders $ 16,003 $ 17,430 $ 16,261 $ 48,754 Net income (loss) attributable to common unitholders per unit—basic $ 0.10 $ 0.11 $ 0.10 $ 0.31 Net income (loss) attributable to common unitholders per unit—diluted $ 0.10 $ 0.11 $ 0.10 $ 0.31 _____________ |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2019ft²property | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 62 |
Square Feet | ft² | 18,756,259 |
Customer Concentration Risk | Rentable Square Feet | 15 largest tenants | |
Real Estate Properties [Line Items] | |
Contribution risk, percentage | 31.80% |
Customer Concentration Risk | Rentable Square Feet | Technology Sector | |
Real Estate Properties [Line Items] | |
Contribution risk, percentage | 30.30% |
Customer Concentration Risk | Rentable Square Feet | Media And Entertainment Sector | |
Real Estate Properties [Line Items] | |
Contribution risk, percentage | 18.50% |
California | Geographic Concentration Risk | |
Real Estate Properties [Line Items] | |
Contribution risk, percentage | 81.50% |
Joint Venture, Blackstone Property Partners | |
Real Estate Properties [Line Items] | |
Joint venture, ownership percentage | 20.00% |
Consolidated portfolio | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 60 |
Square Feet | ft² | 16,829,117 |
Consolidated portfolio | Office | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 51 |
Square Feet | ft² | 13,373,338 |
Consolidated portfolio | Studio | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 3 |
Square Feet | ft² | 1,224,403 |
Consolidated portfolio | Land | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 6 |
Square Feet | ft² | 2,231,376 |
Unconsolidated portfolio | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 2 |
Square Feet | ft² | 1,927,142 |
Unconsolidated portfolio | Office | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 1 |
Square Feet | ft² | 1,477,142 |
Unconsolidated portfolio | Land | |
Real Estate Properties [Line Items] | |
Number of Properties | property | 1 |
Square Feet | ft² | 450,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative and Additional Information (Details) | Oct. 05, 2018USD ($) | Dec. 31, 2019USD ($)jointVenture | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jun. 16, 2016 |
Accounting Policies [Line Items] | ||||||
Investment in unconsolidated real estate entity | $ 64,926,000 | $ 0 | ||||
Construction costs capitalization period after substantially complete | 1 year | |||||
Capitalized personnel costs | $ 9,218,000 | 12,233,000 | $ 10,853,000 | |||
Capitalized interest | 16,258,000 | 14,815,000 | 10,655,000 | |||
Impairment charges | 52,201,000 | 0 | 0 | |||
Impairment of goodwill | 0 | 0 | $ 0 | |||
Gross unrealized gains | 3,800,000 | |||||
Gross unrealized losses | $ 0 | |||||
Weighted average incremental borrowing rate | 5.70% | |||||
Weighted average remaining lease term | 32 years | |||||
Income tax expense | $ 0 | |||||
ASU 2016-02 (ASC 842) | ||||||
Accounting Policies [Line Items] | ||||||
Cumulative adjustment related to adoption of new accounting pronouncement | 2,105,000 | $ 1,800,000 | ||||
Accumulated deficit | $ 300,000 | |||||
Joint Venture, Blackstone Property Partners | ||||||
Accounting Policies [Line Items] | ||||||
Joint venture, ownership percentage | 20.00% | |||||
Joint Venture Secured By Land In Santa Clara, California | ||||||
Accounting Policies [Line Items] | ||||||
Joint venture, ownership percentage | 21.00% | |||||
Investment in unconsolidated real estate entity | $ 0 | $ 86,000 | ||||
Real Estate Technology Venture Capital Fund | ||||||
Accounting Policies [Line Items] | ||||||
Commitment to fund amount | $ 20,000,000 | |||||
Contributions to date | 2,800,000 | |||||
Amount remaining to be contributed | 17,200,000 | |||||
Unrealized gain | $ 928,000 | |||||
Building and improvements | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 39 years | |||||
Land improvements | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 15 years | |||||
Furniture and fixtures | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 5 years | |||||
Furniture and fixtures | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Estimated useful life | 7 years | |||||
VIE, primary beneficiary | ||||||
Accounting Policies [Line Items] | ||||||
Number of joint ventures meeting the VIE definition | jointVenture | 5 | |||||
Number of joint ventures consolidated | jointVenture | 4 | |||||
VIE, primary beneficiary | 1455 Market | ||||||
Accounting Policies [Line Items] | ||||||
VIE, ownership percentage | 55.00% | |||||
VIE, primary beneficiary | Hill7 | ||||||
Accounting Policies [Line Items] | ||||||
VIE, ownership percentage | 55.00% | |||||
VIE, primary beneficiary | One Westside and 10850 Pico | ||||||
Accounting Policies [Line Items] | ||||||
VIE, ownership percentage | 75.00% | |||||
VIE, primary beneficiary | One Westside and 10850 Pico | Macerich | ||||||
Accounting Policies [Line Items] | ||||||
VIE, ownership percentage | 25.00% | |||||
VIE, primary beneficiary | Ferry Building | ||||||
Accounting Policies [Line Items] | ||||||
VIE, ownership percentage | 55.00% | |||||
VIE, not primary beneficiary | ||||||
Accounting Policies [Line Items] | ||||||
Number of joint ventures not consolidated | jointVenture | 1 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 46,224 | $ 53,740 | $ 78,922 | $ 83,015 |
Restricted cash | 12,034 | 14,451 | 22,358 | 25,177 |
Total cash and cash equivalents and restricted cash | $ 58,258 | $ 68,191 | $ 101,280 | $ 108,192 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Accounts Receivable Net of Allowance for Uncollectable Tenant Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 13,007 | $ 16,494 |
Allowance for doubtful accounts | 0 | (2,490) |
Accounts receivable, net | 13,007 | 14,004 |
Straight-line rent receivables | 195,328 | 142,369 |
Allowance for doubtful accounts | 0 | 0 |
Straight-line rent receivables, net | $ 195,328 | $ 142,369 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Prepaid Expenses and Other Assets, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Derivative assets | $ 479 | $ 16,687 |
Goodwill | 8,754 | 8,754 |
Non-real estate investments | 5,545 | 2,713 |
Deposits for future acquisitions | 22,405 | 1,750 |
Deferred financing costs | 3,246 | 3,296 |
Prepaid insurance | 3,463 | 3,014 |
Prepaid property tax | 2,070 | 1,919 |
Other | 23,012 | 17,500 |
Prepaid expenses and other assets, net | $ 68,974 | $ 55,633 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Revenue Streams (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Ancillary Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Service and other revenues | $ 27,951 | $ 24,138 | $ 18,899 |
Receivables | 1,652 | 3,752 | |
Other revenues | |||
Disaggregation of Revenue [Line Items] | |||
Service and other revenues | 28,066 | 25,298 | $ 23,204 |
Receivables | 2,417 | $ 959 | |
Studio-related tenant recoveries | |||
Disaggregation of Revenue [Line Items] | |||
Service and other revenues | 2,261 | ||
Receivables | $ 26 |
Investment in Real Estate (Deta
Investment in Real Estate (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate [Abstract] | ||
Land | $ 1,313,412 | $ 1,372,872 |
Building and improvements | 5,189,342 | 4,991,770 |
Tenant improvements | 631,459 | 510,217 |
Furniture and fixtures | 10,693 | 9,320 |
Property under development | 124,222 | 175,358 |
Investment in real estate, at cost | $ 7,269,128 | $ 7,059,537 |
Investment in Real Estate - Acq
Investment in Real Estate - Acquisition Information (Details) $ in Millions | Oct. 23, 2018USD ($)ft² | Oct. 09, 2018USD ($)ft² | Aug. 31, 2018USD ($)ft² | Jun. 07, 2018USD ($)ft² | Dec. 31, 2019 | Dec. 31, 2018USD ($)ft² |
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 916,701 | |||||
Acquisitions, purchase price | $ | $ 521 | |||||
6605 Eleanor Avenue | Studio Segment | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 22,823 | |||||
Acquisitions, purchase price | $ | $ 18 | |||||
1034 Seward Street | Studio Segment | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 18,673 | |||||
Acquisitions, purchase price | $ | $ 12 | |||||
One Westside and 10850 Pico | VIE, primary beneficiary | ||||||
Real Estate Properties [Line Items] | ||||||
VIE, ownership percentage | 75.00% | |||||
One Westside and 10850 Pico | Office | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 595,987 | |||||
Acquisitions, purchase price | $ | $ 190 | |||||
Ferry Building | VIE, primary beneficiary | ||||||
Real Estate Properties [Line Items] | ||||||
VIE, ownership percentage | 55.00% | |||||
Ferry Building | Office | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 268,018 | |||||
Acquisitions, purchase price | $ | $ 291 | |||||
6660 Santa Monica | Studio Segment | ||||||
Real Estate Properties [Line Items] | ||||||
Acquisitions, square feet | ft² | 11,200 | |||||
Acquisitions, purchase price | $ | $ 10 |
Investment in Real Estate - A_2
Investment in Real Estate - Acquisition, Allocation of Consideration (Details) - USD ($) $ in Thousands | Oct. 23, 2018 | Oct. 09, 2018 | Aug. 31, 2018 | Jun. 07, 2018 | Dec. 31, 2018 |
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | $ 362,687 | ||||
Cash consideration for U.S. Government securities | 149,176 | ||||
Debt assumed | 139,003 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 12,749 | ||||
Total consideration | 663,615 | ||||
Investment in real estate | 505,257 | ||||
U.S. Government securities | 149,176 | ||||
Deferred leasing costs and in-place lease intangibles | 18,412 | ||||
Above-market leases | 1,347 | ||||
Below-market ground lease | (4,528) | ||||
Below-market leases | 15,105 | ||||
Total consideration allocated | $ 663,615 | ||||
Deferred leasing costs and in-place lease intangibles | |||||
Real Estate Properties [Line Items] | |||||
Weighted average amortization period | 6 years 10 months 24 days | ||||
Above-market leases | |||||
Real Estate Properties [Line Items] | |||||
Weighted average amortization period | 5 years 1 month 6 days | ||||
Below-market ground leases | |||||
Real Estate Properties [Line Items] | |||||
Weighted average amortization period | 48 years 7 months 6 days | ||||
Below-market leases | |||||
Real Estate Properties [Line Items] | |||||
Weighted average amortization period | 11 years 1 month 6 days | ||||
6605 Eleanor Avenue | |||||
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | $ 18,071 | ||||
Cash consideration for U.S. Government securities | 0 | ||||
Debt assumed | 0 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | ||||
Total consideration | 18,071 | ||||
Investment in real estate | 18,071 | ||||
U.S. Government securities | 0 | ||||
Deferred leasing costs and in-place lease intangibles | 0 | ||||
Above-market leases | 0 | ||||
Below-market ground lease | 0 | ||||
Below-market leases | 0 | ||||
Total consideration allocated | 18,071 | ||||
1034 Seward Street | |||||
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | 12,095 | ||||
Cash consideration for U.S. Government securities | 0 | ||||
Debt assumed | 0 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | ||||
Total consideration | 12,095 | ||||
Investment in real estate | 12,095 | ||||
U.S. Government securities | 0 | ||||
Deferred leasing costs and in-place lease intangibles | 0 | ||||
Above-market leases | 0 | ||||
Below-market ground lease | 0 | ||||
Below-market leases | 0 | ||||
Total consideration allocated | $ 12,095 | ||||
One Westside and 10850 Pico | |||||
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | $ 40,986 | ||||
Cash consideration for U.S. Government securities | 149,176 | ||||
Debt assumed | 139,003 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 12,749 | ||||
Total consideration | 341,914 | ||||
Investment in real estate | 196,444 | ||||
U.S. Government securities | 149,176 | ||||
Deferred leasing costs and in-place lease intangibles | 826 | ||||
Above-market leases | 605 | ||||
Below-market ground lease | 0 | ||||
Below-market leases | 5,137 | ||||
Total consideration allocated | $ 341,914 | ||||
Ferry Building | |||||
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | $ 281,180 | ||||
Cash consideration for U.S. Government securities | 0 | ||||
Debt assumed | 0 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | ||||
Total consideration | 281,180 | ||||
Investment in real estate | 268,292 | ||||
U.S. Government securities | 0 | ||||
Deferred leasing costs and in-place lease intangibles | 17,586 | ||||
Above-market leases | 742 | ||||
Below-market ground lease | (4,528) | ||||
Below-market leases | 9,968 | ||||
Total consideration allocated | $ 281,180 | ||||
6660 Santa Monica | |||||
Real Estate Properties [Line Items] | |||||
Cash consideration for real estate investments | $ 10,355 | ||||
Cash consideration for U.S. Government securities | 0 | ||||
Debt assumed | 0 | ||||
Redeemable non-controlling interest in consolidated real estate entities | 0 | ||||
Total consideration | 10,355 | ||||
Investment in real estate | 10,355 | ||||
U.S. Government securities | 0 | ||||
Deferred leasing costs and in-place lease intangibles | 0 | ||||
Above-market leases | 0 | ||||
Below-market ground lease | 0 | ||||
Below-market leases | 0 | ||||
Total consideration allocated | $ 10,355 |
Investment in Real Estate - Dis
Investment in Real Estate - Dispositions (Details) $ in Millions | Jul. 30, 2019USD ($)ft² | Jul. 24, 2019USD ($)ft² | Jul. 27, 2018USD ($)ft² | Apr. 10, 2018USD ($)ft² | Mar. 01, 2018USD ($)ft² | Jan. 31, 2018USD ($)ft² | Jan. 25, 2018USD ($)ft² | Nov. 16, 2017USD ($)ft² | Mar. 21, 2017USD ($)ft² | Feb. 14, 2017USD ($)ft² | Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($)ft² | Dec. 31, 2017USD ($)ft² |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 1,417,930 | 815,226 | 823,261 | ||||||||||
Sales Price | $ | $ 148.4 | $ 464.8 | $ 436.8 | ||||||||||
Campus Center Office | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 471,580 | ||||||||||||
Sales Price | $ | $ 70.3 | ||||||||||||
Campus Center Land | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 946,350 | ||||||||||||
Sales Price | $ | $ 78.1 | ||||||||||||
Embarcadero Place | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 197,402 | ||||||||||||
Sales Price | $ | $ 136 | ||||||||||||
2600 Campus Drive | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 63,050 | ||||||||||||
Sales Price | $ | $ 22.5 | ||||||||||||
2180 Sand Hill Road | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 45,613 | ||||||||||||
Sales Price | $ | $ 82.5 | ||||||||||||
9300 Wilshire | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 61,422 | ||||||||||||
Sales Price | $ | $ 13.8 | ||||||||||||
Peninsula Office Park | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 447,739 | ||||||||||||
Sales Price | $ | $ 210 | ||||||||||||
222 Kearny Street | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 148,797 | ||||||||||||
Sales Price | $ | $ 51.8 | ||||||||||||
3402 Pico | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 50,687 | ||||||||||||
Sales Price | $ | $ 35 | ||||||||||||
Pinnacle I and II | |||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||
Area of real estate property | ft² | 623,777 | ||||||||||||
Sales Price | $ | $ 350 |
Investment in Real Estate - Nar
Investment in Real Estate - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)property | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($) | |
Real Estate [Abstract] | |||
Impairment loss | $ 52,201,000 | $ 0 | $ 0 |
Gains on sale of real estate | $ 47,100,000 | $ 43,337,000 | $ 45,574,000 |
Number of real estate properties, held-for-sale | property | 0 | 0 |
Investment in Unconsolidated _3
Investment in Unconsolidated Real Estate Entity (Details) $ in Thousands | 7 Months Ended |
Dec. 31, 2019USD ($) | |
ASSETS | |
Investment in real estate, net | $ 794,321 |
Other Assets | 51,597 |
TOTAL ASSETS | 845,918 |
LIABILITIES | |
Secured debt, net | 480,127 |
Other liabilities | 42,672 |
TOTAL LIABILITIES | 522,799 |
Company's capital | 64,624 |
Partner's capital | 258,495 |
TOTAL CAPITAL | 323,119 |
TOTAL LIABILITIES AND CAPITAL | 845,918 |
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |
TOTAL REVENUES | 41,687 |
TOTAL EXPENSES | (46,434) |
NET LOSS | $ (4,747) |
Joint Venture, Blackstone Property Partners | |
Schedule of Equity Method Investments [Line Items] | |
Joint venture, ownership percentage | 20.00% |
Joint Venture, Blackstone Property Partners | Financial guarantee | |
Schedule of Equity Method Investments [Line Items] | |
Debt guaranteed | $ 97,100 |
Deferred Leasing Costs and Le_3
Deferred Leasing Costs and Lease Intangibles, net (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles, net | $ 285,448 | $ 279,896 |
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Lease intangible liabilities, net | 31,493 | 45,612 |
Deferred leasing costs and in-place lease intangibles | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 359,215 | 336,535 |
Accumulated amortization | (136,816) | (123,432) |
Deferred leasing costs and lease intangibles, net | 222,399 | 213,103 |
Below-market ground leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 72,916 | 72,916 |
Accumulated amortization | (11,436) | (8,932) |
Deferred leasing costs and lease intangibles, net | 61,480 | 63,984 |
Above-market leases | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Deferred leasing costs and lease intangibles | 8,015 | 8,425 |
Accumulated amortization | (6,446) | (5,616) |
Deferred leasing costs and lease intangibles, net | 1,569 | 2,809 |
Below-market leases | ||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Below-market leases, net | 87,064 | 101,736 |
Above-market ground leases, net | (56,447) | (57,043) |
Lease intangible liabilities, net | 30,617 | 44,693 |
Above-market ground leases | ||
Intangible Liability, Amortization Expense, Maturity Schedule [Line Items] | ||
Below-market leases, net | 1,095 | 1,095 |
Above-market ground leases, net | (219) | (176) |
Lease intangible liabilities, net | $ 876 | $ 919 |
Deferred Leasing Costs and Le_4
Deferred Leasing Costs and Lease Intangibles, net - Amortization Expense For Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | $ (12,836) | $ (17,593) | $ (18,062) |
Deferred leasing costs and lease intangibles, net | (285,448) | (279,896) | |
Lease intangible liabilities, net | 31,493 | 45,612 | |
Below-market leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | (14,076) | (19,143) | (25,015) |
2020 | 10,220 | ||
2021 | 7,298 | ||
2022 | 4,719 | ||
2023 | 3,807 | ||
2024 | 1,804 | ||
Thereafter | 2,769 | ||
Lease intangible liabilities, net | 30,617 | 44,693 | |
Above-market ground leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | (43) | (43) | (43) |
2020 | 43 | ||
2021 | 43 | ||
2022 | 43 | ||
2023 | 43 | ||
2024 | 43 | ||
Thereafter | 661 | ||
Lease intangible liabilities, net | 876 | 919 | |
Deferred leasing costs and in-place lease intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | 45,177 | 46,690 | 72,883 |
2020 | (36,485) | ||
2021 | (30,115) | ||
2022 | (23,739) | ||
2023 | (19,423) | ||
2024 | (13,981) | ||
Thereafter | (98,656) | ||
Deferred leasing costs and lease intangibles, net | (222,399) | (213,103) | |
Below-market ground leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | 2,503 | 2,465 | 2,548 |
2020 | (2,504) | ||
2021 | (2,504) | ||
2022 | (2,504) | ||
2023 | (2,504) | ||
2024 | (2,504) | ||
Thereafter | (48,960) | ||
Deferred leasing costs and lease intangibles, net | (61,480) | (63,984) | |
Above-market leases | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense (income) of above and below market leases | 1,240 | 1,550 | $ 6,953 |
2020 | (594) | ||
2021 | (412) | ||
2022 | (245) | ||
2023 | (217) | ||
2024 | (95) | ||
Thereafter | (6) | ||
Deferred leasing costs and lease intangibles, net | $ (1,569) | $ (2,809) |
Debt (Details)
Debt (Details) | Dec. 18, 2019 | Oct. 03, 2019USD ($) | Jun. 14, 2019USD ($) | Feb. 27, 2019USD ($) | Nov. 17, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2019USD ($)extensionOptionderivative | Mar. 04, 2019USD ($) | Mar. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 13, 2018USD ($) |
Debt | |||||||||||
Duration used in interest rate calculation | 360 days | ||||||||||
One Westside and 10850 Pico | VIE, primary beneficiary | |||||||||||
Debt | |||||||||||
Periodic payment, debt service payment term | 10 years | ||||||||||
VIE, ownership percentage | 75.00% | ||||||||||
Hill7 | |||||||||||
Debt | |||||||||||
Joint venture, ownership percentage | 55.00% | ||||||||||
Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Maximum borrowing capacity | $ 235,000,000 | ||||||||||
Term A Loan | Interest Rate Contract | |||||||||||
Debt | |||||||||||
Number of derivative instruments held | derivative | 2 | ||||||||||
Met Park North | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 3.71% | ||||||||||
10950 Washington | |||||||||||
Debt | |||||||||||
Periodic payment, debt service payment term | 30 years | ||||||||||
Unsecured Debt | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 2,475,000,000 | $ 2,275,000,000 | |||||||||
Unsecured Debt | Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Repayments of term loan | $ 80,000,000 | ||||||||||
Unsecured Debt | Hudson Pacific Partners, L.P. | Unsecured Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Outstanding borrowings | 75,000,000 | ||||||||||
Maximum borrowing capacity | 600,000,000 | ||||||||||
Unsecured Debt | Hudson Pacific Partners, L.P. | Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 400,000,000 | $ 600,000,000 | |||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | |||||||||||
Debt | |||||||||||
Outstanding borrowings | 75,000,000 | 400,000,000 | |||||||||
Maximum borrowing capacity | $ 600,000,000 | 600,000,000 | |||||||||
Debt instrument term | 1 year | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.05% | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.05% | ||||||||||
Unsecured Debt | Unsecured Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.50% | ||||||||||
Unsecured Debt | Term A Loan | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 0 | 300,000,000 | |||||||||
Debt instrument term | 5 years | ||||||||||
Repayments of term loan | $ 300,000,000 | ||||||||||
Unsecured Debt | Term A Loan | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 300,000,000 | ||||||||||
Debt instrument term | 5 years | ||||||||||
Unsecured Debt | Term A Loan | Minimum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 2.65% | ||||||||||
Unsecured Debt | Term A Loan | Maximum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 3.06% | ||||||||||
Unsecured Debt | Term A Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.20% | ||||||||||
Unsecured Debt | Term A Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.70% | ||||||||||
Unsecured Debt | Term B Loan | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 350,000,000 | 350,000,000 | |||||||||
Number of derivative instruments held | derivative | 2 | ||||||||||
Unsecured Debt | Term B Loan | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 350,000,000 | ||||||||||
Debt instrument term | 7 years | ||||||||||
Unsecured Debt | Term B Loan | Minimum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 2.96% | ||||||||||
Unsecured Debt | Term B Loan | Maximum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 3.46% | ||||||||||
Unsecured Debt | Term B Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.20% | ||||||||||
Unsecured Debt | Term B Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.70% | ||||||||||
Unsecured Debt | Term C Loan | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 0 | 75,000,000 | |||||||||
Unsecured Debt | Term C Loan | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 75,000,000 | ||||||||||
Debt instrument term | 5 years | 5 years | |||||||||
Repayments of term loan | $ 75,000,000 | ||||||||||
Unsecured Debt | Term C Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.30% | ||||||||||
Unsecured Debt | Term C Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 2.20% | ||||||||||
Unsecured Debt | Term D Loan | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 125,000,000 | 125,000,000 | |||||||||
Unsecured Debt | Term D Loan | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 125,000,000 | ||||||||||
Debt instrument term | 7 years | ||||||||||
Unsecured Debt | Term D Loan | Minimum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 2.63% | ||||||||||
Unsecured Debt | Term D Loan | Maximum | |||||||||||
Debt | |||||||||||
Fixed interest rate percentage | 3.13% | ||||||||||
Unsecured Debt | Term D Loan | London Interbank Offered Rate (LIBOR) | Minimum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.20% | ||||||||||
Unsecured Debt | Term D Loan | London Interbank Offered Rate (LIBOR) | Maximum | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.70% | ||||||||||
Unsecured Debt | Series A Notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 110,000,000 | 110,000,000 | |||||||||
Interest rate | 4.34% | ||||||||||
Unsecured Debt | Series B Notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 259,000,000 | 259,000,000 | |||||||||
Interest rate | 4.69% | ||||||||||
Unsecured Debt | Series C Notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 56,000,000 | 56,000,000 | |||||||||
Interest rate | 4.79% | ||||||||||
Unsecured Debt | Series D Notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 150,000,000 | 150,000,000 | |||||||||
Interest rate | 3.98% | ||||||||||
Unsecured Debt | Series E Notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 50,000,000 | 50,000,000 | |||||||||
Interest rate | 3.66% | ||||||||||
Unsecured Debt | 3.95% Registered senior notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 400,000,000 | 400,000,000 | |||||||||
Interest rate | 3.95% | ||||||||||
Unsecured Debt | 4.65% Registered senior notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 150,000,000 | $ 500,000,000 | 0 | ||||||||
Interest rate | 4.65% | ||||||||||
Unsecured Debt | 4.65% Registered senior notes | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 350,000,000 | ||||||||||
Percentage of par at debt issuance | 104.544% | 98.663% | |||||||||
Unsecured Debt | 3.25% Registered senior notes | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 400,000,000 | 0 | |||||||||
Interest rate | 3.25% | ||||||||||
Unsecured Debt | 3.25% Registered senior notes | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 400,000,000 | ||||||||||
Percentage of par at debt issuance | 99.268% | ||||||||||
Secured Debt | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 370,459,000 | 365,381,000 | |||||||||
Secured Debt | Met Park North | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 64,500,000 | 64,500,000 | |||||||||
Secured Debt | Met Park North | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.55% | ||||||||||
Secured Debt | 10950 Washington | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 26,312,000 | 26,880,000 | |||||||||
Interest rate | 5.32% | ||||||||||
Secured Debt | One Westside and 10850 Pico | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 5,646,000 | 0 | |||||||||
Maximum borrowing capacity | $ 414,600,000 | ||||||||||
Debt instrument term | 4 years | ||||||||||
Extension option term | 1 year | ||||||||||
Secured Debt | One Westside and 10850 Pico | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.70% | ||||||||||
Secured Debt | Revolving Sunset Bronson Studios/ICON/CUE facility | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 5,001,000 | $ 5,000,000 | 0 | ||||||||
Secured Debt | Revolving Sunset Bronson Studios/ICON/CUE facility | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 1.35% | ||||||||||
Secured Debt | Element LA | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 168,000,000 | 168,000,000 | |||||||||
Interest rate | 4.59% | ||||||||||
Secured Debt | Hill7 | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 101,000,000 | 101,000,000 | |||||||||
Interest rate | 3.38% | ||||||||||
Secured Debt | Sunset Gower Studios/Sunset Bronson Studios | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 0 | 5,001,000 | |||||||||
Maximum borrowing capacity | $ 235,000,000 | ||||||||||
Secured Debt | Sunset Gower Studios/Sunset Bronson Studios | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt | |||||||||||
Basis spread on variable rate | 2.25% | ||||||||||
Unsecured and secured debt | |||||||||||
Debt | |||||||||||
Outstanding borrowings | $ 2,845,459,000 | 2,640,381,000 | |||||||||
Deferred financing costs and discounts, net | (27,549,000) | (16,546,000) | |||||||||
Debt | 2,817,910,000 | 2,623,835,000 | |||||||||
Unsecured and secured debt | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Debt | 2,817,910,000 | 2,623,835,000 | |||||||||
In-Substance Defeased Debt | |||||||||||
Debt | |||||||||||
Outstanding borrowings | 135,030,000 | ||||||||||
Debt | $ 135,030,000 | 138,223,000 | |||||||||
Interest rate | 4.47% | ||||||||||
In-Substance Defeased Debt | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Debt | $ 135,030,000 | 138,223,000 | |||||||||
Joint venture partner debt | |||||||||||
Debt | |||||||||||
Outstanding borrowings | 66,136,000 | ||||||||||
Debt | $ 66,136,000 | 66,136,000 | |||||||||
Interest rate | 4.50% | ||||||||||
Number of extension options | extensionOption | 2 | ||||||||||
Extension option term | 2 years | ||||||||||
Joint venture partner debt | Hudson Pacific Partners, L.P. | |||||||||||
Debt | |||||||||||
Debt | $ 66,136,000 | $ 66,136,000 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 18, 2019 | Oct. 03, 2019 | Jun. 14, 2019 | Feb. 27, 2019 | Nov. 17, 2015 | Nov. 16, 2015 | Mar. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 04, 2019 | Mar. 01, 2019 | Mar. 13, 2018 | Apr. 01, 2015 |
A & R Credit Facilities | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 2,000,000,000 | ||||||||||||
Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 2,475,000,000 | $ 2,275,000,000 | |||||||||||
Unsecured Debt | Term C Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | 0 | 75,000,000 | |||||||||||
Unsecured Debt | Term C Loan | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 75,000,000 | ||||||||||||
Repayments of term loan | $ 75,000,000 | ||||||||||||
Debt instrument term | 5 years | 5 years | |||||||||||
Unsecured Debt | 4.65% Registered senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 150,000,000 | $ 500,000,000 | 0 | ||||||||||
Stated interest rate | 4.65% | ||||||||||||
Proceeds from issuance of private placement of debt | $ 155,300,000 | ||||||||||||
Effective interest rate | 4.65% | ||||||||||||
Unsecured Debt | 4.65% Registered senior notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 350,000,000 | ||||||||||||
Percentage of par at debt issuance | 104.544% | 98.663% | |||||||||||
Stated interest rate | 4.65% | ||||||||||||
Unsecured Debt | 3.25% Registered senior notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 400,000,000 | 0 | |||||||||||
Stated interest rate | 3.25% | ||||||||||||
Proceeds from issuance of private placement of debt | $ 393,700,000 | ||||||||||||
Effective interest rate | 3.25% | ||||||||||||
Unsecured Debt | 3.25% Registered senior notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 400,000,000 | ||||||||||||
Percentage of par at debt issuance | 99.268% | ||||||||||||
Stated interest rate | 3.25% | ||||||||||||
Unsecured Debt | Term A Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 0 | 300,000,000 | |||||||||||
Repayments of term loan | $ 300,000,000 | ||||||||||||
Debt instrument term | 5 years | ||||||||||||
Unsecured Debt | Term A Loan | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 300,000,000 | ||||||||||||
Debt instrument term | 5 years | ||||||||||||
Unsecured Debt | Term B Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | 350,000,000 | 350,000,000 | |||||||||||
Unsecured Debt | Term B Loan | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 350,000,000 | ||||||||||||
Debt instrument term | 7 years | ||||||||||||
Unsecured Debt | Term D Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | 125,000,000 | 125,000,000 | |||||||||||
Unsecured Debt | Term D Loan | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 125,000,000 | ||||||||||||
Debt instrument term | 7 years | ||||||||||||
Unsecured Debt | Series A Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 110,000,000 | 110,000,000 | |||||||||||
Effective interest rate | 4.34% | ||||||||||||
Unsecured Debt | Series A Notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 110,000,000 | ||||||||||||
Unsecured Debt | Series B Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 259,000,000 | 259,000,000 | |||||||||||
Effective interest rate | 4.69% | ||||||||||||
Unsecured Debt | Series B Notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | 259,000,000 | ||||||||||||
Unsecured Debt | Series C Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 56,000,000 | 56,000,000 | |||||||||||
Effective interest rate | 4.79% | ||||||||||||
Unsecured Debt | Series C Notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | 56,000,000 | ||||||||||||
Unsecured Debt | Series D Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 150,000,000 | 150,000,000 | |||||||||||
Effective interest rate | 3.98% | ||||||||||||
Unsecured Debt | Series E Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 50,000,000 | 50,000,000 | |||||||||||
Effective interest rate | 3.66% | ||||||||||||
Unsecured Debt | Senior Notes | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, face amount | $ 425,000,000 | ||||||||||||
Prepayment, percent of principal, minimum | 5.00% | ||||||||||||
Prepayment, percent of principal | 100.00% | ||||||||||||
Senior Notes | Senior Notes Due November 1, 2027 | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Proceeds from issuance of private placement of debt | $ 343,000,000 | ||||||||||||
Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 370,459,000 | 365,381,000 | |||||||||||
Secured Debt | Revolving Sunset Bronson Studios/ICON/CUE facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 5,001,000 | 0 | $ 5,000,000 | ||||||||||
Secured Debt | Revolving Sunset Bronson Studios/ICON/CUE facility | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.35% | ||||||||||||
Secured Debt | One Westside and 10850 Pico | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 5,646,000 | 0 | |||||||||||
Debt instrument term | 4 years | ||||||||||||
Maximum borrowing capacity | $ 414,600,000 | ||||||||||||
Extension option term | 1 year | ||||||||||||
Secured Debt | One Westside and 10850 Pico | London Interbank Offered Rate (LIBOR) | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate | 1.70% | ||||||||||||
Unsecured Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Increase in borrowing capacity | $ (325,000,000) | ||||||||||||
Unsecured Revolving Credit Facility | Unsecured Debt | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 75,000,000 | ||||||||||||
Maximum borrowing capacity | $ 600,000,000 | ||||||||||||
Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 235,000,000 | ||||||||||||
Unused fee rate | 0.20% | ||||||||||||
Revolving Credit Facility | Unsecured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of term loan | $ 80,000,000 | ||||||||||||
Revolving Credit Facility | Unsecured Debt | Hudson Pacific Partners, L.P. | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 400,000,000 | $ 600,000,000 |
Debt - Minimum Future Payments
Debt - Minimum Future Payments Due on Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unsecured and secured debt | ||
Debt Instrument [Line Items] | ||
2020 | $ 65,095 | |
2021 | 632 | |
2022 | 575,085 | |
2023 | 165,646 | |
2024 | 5,001 | |
Thereafter | 2,034,000 | |
Total | 2,845,459 | $ 2,640,381 |
In-Substance Defeased Debt | ||
Debt Instrument [Line Items] | ||
2020 | 3,323 | |
2021 | 3,494 | |
2022 | 128,213 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total | 135,030 | |
Joint venture partner debt | ||
Debt Instrument [Line Items] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 66,136 | |
Total | $ 66,136 |
Debt - Unsecured Revolving Cred
Debt - Unsecured Revolving Credit Facility (Details) - Unsecured Debt - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | $ 2,475,000,000 | $ 2,275,000,000 |
Unsecured Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding borrowings | 75,000,000 | 400,000,000 |
Remaining borrowing capacity | 525,000,000 | 200,000,000 |
Total borrowing capacity | $ 600,000,000 | $ 600,000,000 |
Debt instrument term | 1 year | |
Unsecured Revolving Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.05% | |
Annual facility fee rate | 0.15% | |
Unsecured Revolving Credit Facility | Minimum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.05% | |
Unsecured Revolving Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Annual facility fee rate | 0.30% | |
Unsecured Revolving Credit Facility | Maximum | London Interbank Offered Rate (LIBOR) | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% |
Debt - Covenants (Details)
Debt - Covenants (Details) | 12 Months Ended |
Dec. 31, 2019Rate | |
Covenant Level | |
Total liabilities to total asset value | 60.00% |
Unsecured indebtedness to unencumbered asset value | 60.00% |
Adjusted EBITDA to fixed charges | 150.00% |
Secured indebtedness to total asset value | 45.00% |
Unencumbered NOI to unsecured interest expense | 200.00% |
Debt to total assets | 60.00% |
Total unencumbered assets to unsecured debt | 150.00% |
Consolidated income available for debt service to annual debt service charge | 150.00% |
Secured debt to total assets | 45.00% |
Actual Performance | |
Total liabilities to total asset value | 35.40% |
Unsecured indebtedness to unencumbered asset value | 41.40% |
Adjusted EBITDA to fixed charges | 3.5 |
Secured indebtedness to total asset value | 5.60% |
Unencumbered NOI to unsecured interest expense | 3.4 |
Debt to total assets | 38.20% |
Total unencumbered assets to unsecured debt | 246.90% |
Consolidated income available for debt service to annual debt service charge | 3.8 |
Secured debt to total assets | 6.00% |
4.65% Registered senior notes | Unsecured Debt | |
Debt Instrument [Line Items] | |
Stated interest rate | 4.65% |
3.95% Registered senior notes | Unsecured Debt | |
Debt Instrument [Line Items] | |
Stated interest rate | 3.95% |
Debt - Interest Expense (Detail
Debt - Interest Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |||
Gross interest expense | $ 115,845,000 | $ 92,017,000 | $ 94,660,000 |
Capitalized interest | (16,258,000) | (14,815,000) | (10,655,000) |
Amortization of deferred financing costs and loan discount, net | 6,258,000 | 5,965,000 | 6,032,000 |
Interest Expense | 105,845,000 | 83,167,000 | 90,037,000 |
Interest costs incurred on notes payable, hedging activities and extinguishment costs | $ 744,000 | $ 421,000 | $ 1,100,000 |
Derivatives (Details)
Derivatives (Details) | Oct. 04, 2019USD ($) | Oct. 03, 2019USD ($) | Feb. 28, 2019USD ($) | Dec. 31, 2019USD ($)derivative | Dec. 31, 2018USD ($)derivative | Mar. 13, 2018 | Jan. 01, 2018USD ($) |
Derivative | |||||||
Payment to terminate derivative instrument | $ 393,900 | $ 1,600,000 | |||||
Unrealized loss included in accumulated other comprehensive loss | $ 200,000 | ||||||
Retained Earnings (Accumulated Deficit) | ASU 2017-12 | |||||||
Derivative | |||||||
Cumulative adjustment related to adoption of new accounting pronouncement | $ 231,000 | ||||||
Met Park North | |||||||
Derivative | |||||||
Interest Rate | 3.71% | ||||||
Term A Loan | Unsecured Debt | |||||||
Derivative | |||||||
Repayments of term loan | $ 300,000,000 | ||||||
Term A Loan | Minimum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 2.65% | ||||||
Term A Loan | Maximum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 3.06% | ||||||
Term B Loan | Unsecured Debt | |||||||
Derivative | |||||||
Number of Hedges | derivative | 2 | ||||||
Term B Loan | Minimum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 2.96% | ||||||
Term B Loan | Maximum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 3.46% | ||||||
Term D Loan | Minimum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 2.63% | ||||||
Term D Loan | Maximum | Unsecured Debt | |||||||
Derivative | |||||||
Interest Rate | 3.13% | ||||||
Term Loan A [Member] | Unsecured Debt | |||||||
Derivative | |||||||
Repayments of term loan | 300,000,000 | ||||||
4.65% Registered senior notes | Unsecured Debt | |||||||
Derivative | |||||||
Stated interest rate | 4.65% | ||||||
Senior Notes Due January 2030 [Member] | Senior Notes | |||||||
Derivative | |||||||
Debt instrument, face amount | $ 400,000,000 | ||||||
Designated as Hedging Instrument | Interest Rate Swaps | |||||||
Derivative | |||||||
Number of Hedges | derivative | 4 | 6 | |||||
Notional Amount | $ 539,500,000 | $ 839,500,000 | |||||
Fair Value (Liabilities)/Assets | $ (1,312,000) | $ 16,687,000 | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | |||||||
Derivative | |||||||
Number of Hedges | derivative | 1 | 1 | |||||
Notional Amount | $ 64,500,000 | $ 64,500,000 | |||||
Fair Value (Liabilities)/Assets | $ (195,000) | $ 350,000 | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | Minimum | |||||||
Derivative | |||||||
Interest Rate | 3.71% | ||||||
Designated as Hedging Instrument | Interest Rate Swaps | Met Park North | Maximum | |||||||
Derivative | |||||||
Interest Rate | 3.71% | ||||||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | |||||||
Derivative | |||||||
Number of Hedges | derivative | 2 | ||||||
Notional Amount | $ 300,000,000 | ||||||
Fair Value (Liabilities)/Assets | $ 0 | $ 4,038,000 | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | Minimum | |||||||
Derivative | |||||||
Interest Rate | 2.65% | 2.75% | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term A Loan | Maximum | |||||||
Derivative | |||||||
Interest Rate | 3.06% | 3.65% | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | |||||||
Derivative | |||||||
Number of Hedges | derivative | 2 | 2 | |||||
Notional Amount | $ 350,000,000 | $ 350,000,000 | |||||
Fair Value (Liabilities)/Assets | $ (1,596,000) | $ 7,543,000 | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | Minimum | |||||||
Derivative | |||||||
Interest Rate | 2.96% | 3.36% | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term B Loan | Maximum | |||||||
Derivative | |||||||
Interest Rate | 3.46% | 4.31% | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | |||||||
Derivative | |||||||
Number of Hedges | derivative | 1 | 1 | |||||
Notional Amount | $ 125,000,000 | $ 125,000,000 | |||||
Fair Value (Liabilities)/Assets | $ 479,000 | $ 4,756,000 | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | Minimum | |||||||
Derivative | |||||||
Interest Rate | 2.63% | 3.03% | |||||
Designated as Hedging Instrument | Interest Rate Swaps | Term D Loan | Maximum | |||||||
Derivative | |||||||
Interest Rate | 3.13% | 3.98% |
U.S. Government Securities (Det
U.S. Government Securities (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Gross unrealized gains | $ 3,800,000 | |
Gross unrealized losses | 0 | |
Carrying Value | ||
Due in 1 year | 5,632,000 | |
Due in 1 to 5 years | 135,117,000 | |
Total | 140,749,000 | $ 146,880,000 |
Fair Value | ||
Due in 1 year | 5,684,000 | |
Due in 1 to 5 years | 138,905,000 | |
Total | $ 144,589,000 |
Future Minimum Base Rents and_3
Future Minimum Base Rents and Lease Payments - Future Minimum Base Rents Receivable (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2020 | $ 585,000 |
2021 | 581,172 |
2022 | 544,040 |
2023 | 506,227 |
2024 | 436,783 |
Thereafter | 1,824,676 |
Total | 4,477,898 |
Non-Cancelable Leases | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2020 | 575,685 |
2021 | 551,940 |
2022 | 502,765 |
2023 | 463,415 |
2024 | 414,430 |
Thereafter | 1,668,069 |
Total | 4,176,304 |
Subject to Early Termination Options | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2020 | 9,315 |
2021 | 29,232 |
2022 | 41,275 |
2023 | 42,812 |
2024 | 22,353 |
Thereafter | 156,607 |
Total | $ 301,594 |
Future Minimum Base Rents and_4
Future Minimum Base Rents and Lease Payments - Ground Lease Terms for Properties Held (Details) - Ground Lease | 12 Months Ended |
Dec. 31, 2019USD ($)extensionOption | |
3400 Hillview | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, cumulative increases in consumer price index | $ | $ 1,000,000 |
Minimum annual rent calculation, percent of consumer price index over the next 5 years | 75.00% |
Minimum annual rent calculation, percent of consumer price index, thereafter | 75.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Clocktower Square | |
Operating Leased Assets | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum rent adjustments, percent of average annual participation rent over five years | 60.00% |
Del Amo Office | |
Operating Leased Assets | |
Minimum annual rent | $ | $ 1 |
Ferry Building | |
Operating Leased Assets | |
Minimum annual rent adjustments, frequency | 5 years |
Cumulative change in CPI, floor, percent | 10.00% |
Cumulative change in CPI, cap, percent | 20.00% |
Ferry Building, Parking Lot | |
Operating Leased Assets | |
Cumulative change in CPI, floor, percent | 2.00% |
Cumulative change in CPI, cap, percent | 4.00% |
Renewal term | 10 years |
Foothill Research Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
3176 Porter (formerly Lockheed) | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 10.00% |
Minimum annual rent calculation, percent of adjusted gross income | 24.125% |
Minimum annual rent calculation, percent of consumer price index | 75.00% |
Metro Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 7.233% |
Minimum annual rent adjustments, frequency | 10 years |
Renewal term | 11 years |
Number of options to extend | extensionOption | 4 |
Page Mill Center | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum rent adjustments, percent of average annual participation rent over five years | 60.00% |
Page Mill Hill | |
Operating Leased Assets | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of annual rent, previous 7 years | 60.00% |
Minimum annual rent adjustments, percent of annual rent, previous 7 years | 60.00% |
Palo Alto Square | |
Operating Leased Assets | |
Minimum annual rent adjustments, frequency | 10 years |
Minimum annual rent calculation, percent of adjusted gross income | 25.00% |
Minimum annual rent adjustments, percent of annual rent, previous 5 years | 50.00% |
Sunset Gower Studios | |
Operating Leased Assets | |
Minimum annual rent calculation, percent of land fair market value | 7.50% |
Minimum annual rent adjustments, frequency | 7 years |
Techmart Commerce Center | |
Operating Leased Assets | |
Minimum annual rent adjustments, frequency | 5 years |
Renewal term | 10 years |
Number of options to extend | extensionOption | 2 |
Minimum rent adjustments, percent | 10.00% |
Future Minimum Base Rents and_5
Future Minimum Base Rents and Lease Payments - Rental Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Contingent rental expense | $ 9,193 | $ 10,740 | $ 8,775 |
Minimum rental expense | $ 19,900 | $ 15,906 | $ 12,412 |
Future Minimum Base Rents and_6
Future Minimum Base Rents and Lease Payments - Future Minimum Payments Due (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 18,488 |
2021 | 18,609 |
2022 | 18,649 |
2023 | 18,434 |
2024 | 18,392 |
Thereafter | 534,353 |
Total | 626,925 |
Less: interest portion | (354,224) |
Present value of lease liability | $ 272,701 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | $ 479 | $ 16,687 | |
Derivative liabilities | (1,791) | 0 | |
Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Investments | 140,749 | 146,880 | |
Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Investments | 144,589 | 147,686 | |
Non-Real Estate Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Investments | 5,545 | ||
Unsecured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 2,475,000 | 2,275,000 | |
Unsecured Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 2,540,606 | 2,227,265 | |
Secured Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 370,459 | 365,381 | |
Secured Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 366,476 | 354,109 | |
In-Substance Defeased Debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 135,030 | 138,223 | |
In-Substance Defeased Debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 134,936 | 135,894 | $ 135,894 |
Joint venture partner debt | Carrying Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 66,136 | 66,136 | |
Joint venture partner debt | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Notes payable | 68,557 | 66,136 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Level 1 | Non-Real Estate Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Investments | 2,713 | ||
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 479 | 16,687 | |
Derivative liabilities | (1,791) | 0 | |
Level 2 | Non-Real Estate Investments | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Investments | 5,545 | 2,713 | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Derivative assets | 0 | 0 | |
Derivative liabilities | $ 0 | $ 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock price assumption for maximum bonus pool eligibility (in dollars per share) | $ 37.65 | ||
Unrecognized compensation cost related to unvested share-based payments | $ 35,600,000 | ||
Unrecognized compensation cost, amortization period (in years) | 2 years | ||
Time-based one-time special retention awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
Award vesting percentage | 25.00% | ||
Performance-based one-time special retention awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 4 years | ||
One-Time Retention Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period (in years) | 4 years | ||
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized for issuance | 2 | ||
Existing and Newly Elected Board Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Outperformance Program | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 2 years | 2 years | |
Award performance period (in years) | 3 years | ||
Award vesting percentage after performance period | 50.00% | ||
Award vesting percentage | 50.00% | ||
Awards holding period (in years) | 2 years | ||
Maximum bonus pool | $ 28,000,000 | $ 25,000,000 |
Stock-Based Compensation - Key
Stock-Based Compensation - Key Components of Outperformance Plan (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Outperformance Program | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum bonus pool | $ 28,000,000 | $ 25,000,000 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - Outperformance Program | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 2.57% | 2.37% | 1.47% |
Dividend yield | 3.00% | 2.90% | 2.30% |
One-Time Retention Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free rate | 1.63% | ||
Dividend yield | 3.20% | ||
The Company | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected price volatility | 22.00% | 20.00% | 24.00% |
The Company | One-Time Retention Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected price volatility | 23.00% | ||
REIT Index | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected price volatility | 18.00% | 18.00% | 17.00% |
REIT Index | One-Time Retention Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected price volatility | 18.00% |
Stock-Based Compensation - Acti
Stock-Based Compensation - Activity and Status of Unvested Shares and Performance Units (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Units | |||
Beginning balance (in shares) | 703,796 | 1,087,186 | 887,179 |
Granted (in shares) | 247,521 | 190,557 | 918,884 |
Vested (in shares) | (470,019) | (571,481) | (705,508) |
Canceled (in shares) | (21,514) | (2,466) | (13,369) |
Ending balance (in shares) | 459,784 | 703,796 | 1,087,186 |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 32.93 | $ 33.64 | $ 31.09 |
Granted (in dollars per share) | 35.50 | 29.53 | 34.37 |
Vested (in dollars per share) | 32.88 | 32.74 | 31.42 |
Canceled (in dollars per share) | 34.16 | 33.38 | 32.14 |
Ending balance (in dollars per share) | $ 33.67 | $ 32.93 | $ 33.64 |
Total Vest-Date Fair Value | $ 17,009 | $ 16,735 | $ 24,155 |
Performance units | |||
Units | |||
Beginning balance (in shares) | 318,549 | 0 | |
Granted (in shares) | 481,215 | 318,549 | |
Vested (in shares) | (191,085) | 0 | |
Canceled (in shares) | 0 | 0 | |
Ending balance (in shares) | 608,679 | 318,549 | 0 |
Weighted-Average Grant-Date Fair Value | |||
Beginning balance (in dollars per share) | $ 28.41 | $ 0 | |
Granted (in dollars per share) | 35.74 | 28.41 | |
Vested (in dollars per share) | 30.37 | 0 | |
Canceled (in dollars per share) | 0 | 0 | |
Ending balance (in dollars per share) | $ 32.70 | $ 28.41 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Recorded (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expensed stock compensation | $ 19,481 | $ 17,028 | $ 15,079 |
Capitalized stock compensation | 951 | 1,097 | 836 |
Total stock compensation | $ 20,432 | $ 18,125 | $ 15,915 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Basic net income available to common stockholders | $ 42,725 | $ 98,090 | $ 67,587 | ||||||||
Effect of dilutive instruments | 331 | 0 | 0 | ||||||||
Diluted net income available to common stockholders | $ 43,056 | $ 98,090 | $ 67,587 | ||||||||
Denominator: | |||||||||||
Basic weighted average shares of common shares outstanding (in shares) | 154,404,427 | 155,445,247 | 153,488,730 | ||||||||
Effect of dilutive instruments (in shares) | 2,197,981 | 251,239 | 394,084 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 156,602,408 | 155,696,486 | 153,882,814 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Diluted earnings per common share (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Hudson Pacific Partners, L.P. | |||||||||||
Numerator: | |||||||||||
Basic net income available to common stockholders | $ 13,639 | $ 59,029 | $ 9,863 | $ (39,577) | $ 16,003 | $ 17,430 | $ 16,261 | $ 48,754 | $ 42,954 | $ 98,448 | $ 67,962 |
Diluted net income available to common stockholders | $ 42,954 | $ 98,448 | $ 67,962 | ||||||||
Denominator: | |||||||||||
Basic weighted average common units outstanding (in shares) | 155,094,997 | 156,014,292 | 154,276,773 | ||||||||
Effect of dilutive instruments (in shares) | 1,017,605 | 251,239 | 394,084 | ||||||||
Diluted weighted average common units outstanding (in shares) | 156,112,602 | 156,265,531 | 154,670,857 | ||||||||
Basic earnings per common unit (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Diluted earnings per common unit (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Redeemable Non-Controlling In_3
Redeemable Non-Controlling Interest (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 16, 2018 | Dec. 31, 2019 |
Noncontrolling Interest [Line Items] | ||
Interest rate of preferred stock | 6.25% | |
Interest in Consolidated Entities | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 113,141 | |
Contributions | 14,128 | |
Distributions | (15) | |
Declared dividend | 0 | |
Net Income | (1,994) | |
Ending balance | $ 125,260 | |
HPP MAC WSP, LLC | VIE, primary beneficiary | ||
Noncontrolling Interest [Line Items] | ||
VIE, ownership percentage | 75.00% | |
Ferry Building | VIE, primary beneficiary | ||
Noncontrolling Interest [Line Items] | ||
VIE, ownership percentage | 55.00% | |
Series A Redeemable Preferred Units | ||
Noncontrolling Interest [Line Items] | ||
Redeemable non-controlling interest shares | 392,598 | |
Shares redeemed during period (in shares) | 14,468 | |
Redemption price (in dollars per share) | $ 25 | |
Liquidation preference (in dollars per share) | $ 25 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||
Beginning balance | $ 9,815 | |
Contributions | 0 | |
Distributions | 0 | |
Declared dividend | (612) | |
Net Income | 612 | |
Ending balance | $ 9,815 |
Equity - Comprehensive Income (
Equity - Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 3,830,130 | $ 3,910,964 | $ 3,702,750 | |
Total other comprehensive (loss) income | (18,178) | 4,058 | 7,398 | |
Reclassification related to redemption of common units in the operating partnership | (525) | (310,855) | ||
Ending balance | 3,709,362 | 3,830,130 | 3,910,964 | |
Hudson Pacific Partners, L.P. | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 3,830,130 | 3,910,964 | 3,702,750 | |
Total other comprehensive (loss) income | (18,178) | 4,058 | 7,398 | |
Ending balance | 3,709,362 | 3,830,130 | 3,910,964 | |
Total Equity | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 17,501 | 13,227 | 9,496 | |
Unrealized (loss) gain recognized in OCI | (12,608) | 7,331 | 3,011 | |
Reclassification from OCI into income | (5,454) | (3,287) | 4,342 | |
Total other comprehensive (loss) income | (18,062) | 4,044 | 7,353 | |
Reclassification related to redemption of common units in the operating partnership | (3,622) | |||
Cumulative adjustment related to adoption of new accounting pronouncement | $ 230 | |||
Ending balance | (561) | 17,501 | 13,227 | |
Total Equity | Hudson Pacific Partners, L.P. | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 17,565 | 13,276 | 5,878 | |
Unrealized (loss) gain recognized in OCI | (12,688) | 7,358 | 3,029 | |
Reclassification from OCI into income | (5,490) | (3,300) | 4,369 | |
Total other comprehensive (loss) income | (18,178) | 4,058 | 7,398 | |
Cumulative adjustment related to adoption of new accounting pronouncement | 231 | |||
Ending balance | (613) | 17,565 | 13,276 | |
Derivative Instruments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 17,501 | 13,227 | 9,496 | |
Unrealized (loss) gain recognized in OCI | (14,438) | 7,331 | 3,011 | |
Reclassification from OCI into income | (5,454) | (3,287) | 4,342 | |
Total other comprehensive (loss) income | (19,892) | 4,044 | 7,353 | |
Reclassification related to redemption of common units in the operating partnership | (3,622) | |||
Cumulative adjustment related to adoption of new accounting pronouncement | 230 | |||
Ending balance | (2,391) | 17,501 | 13,227 | |
Derivative Instruments | Hudson Pacific Partners, L.P. | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 17,565 | 13,276 | 5,878 | |
Unrealized (loss) gain recognized in OCI | (14,533) | 7,358 | 3,029 | |
Reclassification from OCI into income | (5,490) | (3,300) | 4,369 | |
Total other comprehensive (loss) income | (20,023) | 4,058 | 7,398 | |
Cumulative adjustment related to adoption of new accounting pronouncement | 231 | |||
Ending balance | (2,458) | 17,565 | 13,276 | |
Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | |
Unrealized (loss) gain recognized in OCI | 1,830 | 0 | 0 | |
Reclassification from OCI into income | 0 | 0 | 0 | |
Total other comprehensive (loss) income | 1,830 | 0 | 0 | |
Reclassification related to redemption of common units in the operating partnership | 0 | |||
Cumulative adjustment related to adoption of new accounting pronouncement | 0 | |||
Ending balance | 1,830 | 0 | 0 | |
Currency Translation Adjustments | Hudson Pacific Partners, L.P. | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | 0 | 0 | 0 | |
Unrealized (loss) gain recognized in OCI | 1,845 | 0 | 0 | |
Reclassification from OCI into income | 0 | 0 | 0 | |
Total other comprehensive (loss) income | 1,845 | 0 | 0 | |
Cumulative adjustment related to adoption of new accounting pronouncement | $ 0 | |||
Ending balance | $ 1,845 | $ 0 | $ 0 |
Equity - Non-controlling Intere
Equity - Non-controlling Interests (Details) | Jan. 17, 2019shares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares |
Class of Stock [Line Items] | ||||
Company-owned common units in the operating partnership | 154,691,052 | 154,371,538 | ||
Non-controlling common units in the operating partnership - common units | 550,969 | |||
Non-controlling common units in the operating partnership - preferred units | 360,889 | |||
Partners' capital redeemed units | 18,076 | 0 | ||
Hudson Pacific Partners, L.P. | ||||
Class of Stock [Line Items] | ||||
Company’s ownership interest percentage | 99.40% | 99.60% | 99.60% | |
Noncontrolling Interest In Operating Partnership | ||||
Class of Stock [Line Items] | ||||
Non-controlling ownership interest percentage | 0.60% | 0.40% | 0.40% | |
Noncontrolling Interest In Operating Partnership | Common Stock | ||||
Class of Stock [Line Items] | ||||
Non-controlling common units in the operating partnership | 911,858 | 569,045 | 569,045 | |
Performance units | ||||
Class of Stock [Line Items] | ||||
Common stock, conversion ratio | 1 | |||
Partnership Interest | Hudson Pacific Partners, L.P. | ||||
Class of Stock [Line Items] | ||||
Company-owned common units in the operating partnership | 154,691,052 | 154,371,538 | 155,602,508 |
Equity - Common Stock Activity
Equity - Common Stock Activity (Details) - USD ($) | Mar. 08, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | ||||
Proceeds from issuance of common stock/units, net | $ 0 | $ 0 | $ 647,382,000 | |
Shares repurchased during period | 1,639,260 | |||
Repurchase of common stock | $ 50,016,000 | |||
ATM Program | ||||
Class of Stock [Line Items] | ||||
Number of share authorized, value | $ 125,000,000 | |||
Cumulative total of sales of common stock | 20,100,000 | |||
Proceeds from issuance of common stock/units, net | $ 0 | $ 0 | $ 0 | |
Shares repurchased during period | 1,600,000 | 0 | ||
Stock repurchase program authorized | $ 250,000,000 | |||
Share repurchase program, weighted average price (in dollars per share) | $ 30.48 | |||
Repurchase of common stock | $ 50,000,000 |
Equity - Dividends (Details)
Equity - Dividends (Details) - $ / shares | Dec. 17, 2018 | Sep. 18, 2018 | Jun. 19, 2018 | Mar. 19, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Class of Stock [Line Items] | |||||||
Common stock, dividends declared (in dollars per share) | $ 1 | $ 1 | $ 1 | ||||
Common units, dividends declared (in dollars per share) | 1 | 1 | 1 | ||||
Common stock, distributions per share (in dollars per share) | $ 0.25000 | $ 0.25000 | $ 0.25000 | $ 0.25000 | $ 1 | ||
Common stock, dividends | 100.00% | ||||||
Common stock, percentage classified as ordinary dividends | 63.01% | ||||||
Common stock, percentage classified as return of capital | 36.99% | ||||||
Series A Cumulative Redeemable Preferred Units of the Operating Partnership | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock, dividends declared (in dollars per share) | $ 1.5625 | $ 1.5625 | $ 1.5625 | ||||
Oridnary Dividends | |||||||
Class of Stock [Line Items] | |||||||
Common stock, distributions per share (in dollars per share) | 0.15752 | 0.15752 | 0.15752 | 0.15752 | 0.63008 | ||
Non-Qualified Ordinary Dividends | |||||||
Class of Stock [Line Items] | |||||||
Common stock, distributions per share (in dollars per share) | 0.15752 | 0.15752 | 0.15752 | 0.15752 | 0.63008 | ||
Qualified Ordinary Dividends | |||||||
Class of Stock [Line Items] | |||||||
Common stock, distributions per share (in dollars per share) | 0 | 0 | 0 | 0 | 0 | ||
Return of Capital Dividend | |||||||
Class of Stock [Line Items] | |||||||
Common stock, distributions per share (in dollars per share) | $ 0.09248 | $ 0.09248 | $ 0.09248 | $ 0.09248 | $ 0.36992 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | ||||||||||
Revenues | $ 216,850,000 | $ 208,218,000 | $ 196,656,000 | $ 197,389,000 | $ 198,433,000 | $ 180,698,000 | $ 175,169,000 | $ 174,118,000 | $ 818,182,000 | $ 728,418,000 | $ 728,139,000 |
Total operating expense | (172,798,000) | (165,851,000) | (158,385,000) | (158,523,000) | (157,021,000) | (144,310,000) | (139,388,000) | (139,021,000) | (655,557,000) | (579,740,000) | (591,536,000) |
General and administrative | (71,947,000) | (61,027,000) | (54,459,000) | ||||||||
Depreciation and amortization | (282,088,000) | (251,003,000) | (283,570,000) | ||||||||
Loss from unconsolidated real estate entity | (747,000) | 0 | 0 | ||||||||
Fee income | 1,459,000 | 0 | 0 | ||||||||
Interest expense | (105,845,000) | (83,167,000) | (90,037,000) | ||||||||
Interest income | 4,044,000 | 1,718,000 | 97,000 | ||||||||
Transaction-related expenses | (667,000) | (535,000) | (598,000) | ||||||||
Unrealized gain on non-real estate investment | 0 | 928,000 | 0 | ||||||||
Unrealized loss on ineffective portion of derivative instruments | 0 | 0 | (70,000) | ||||||||
Gains on sale of real estate | 47,100,000 | 43,337,000 | 45,574,000 | ||||||||
Impairment loss | (52,201,000) | 0 | 0 | ||||||||
Other income | 78,000 | 822,000 | 2,992,000 | ||||||||
Net income | $ 16,963,000 | $ 62,955,000 | $ 12,823,000 | $ (36,895,000) | $ 19,257,000 | $ 20,270,000 | $ 19,691,000 | $ 52,563,000 | 55,846,000 | 111,781,000 | 94,561,000 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 818,182,000 | 728,418,000 | 728,139,000 | ||||||||
Total operating expense | (301,522,000) | (267,710,000) | (253,507,000) | ||||||||
Total Segment Profit | 516,660,000 | 460,708,000 | 474,632,000 | ||||||||
Office | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 733,735,000 | 652,517,000 | 667,110,000 | ||||||||
Total operating expense | (256,209,000) | (226,820,000) | (218,873,000) | ||||||||
Total Segment Profit | 477,526,000 | 425,697,000 | 448,237,000 | ||||||||
Studio Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 84,447,000 | 75,901,000 | 61,029,000 | ||||||||
Total operating expense | (45,313,000) | (40,890,000) | (34,634,000) | ||||||||
Total Segment Profit | $ 39,134,000 | $ 35,011,000 | $ 26,395,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) $ in Thousands | Oct. 09, 2018USD ($) | Feb. 14, 2017USD ($) | Jan. 10, 2017USD ($)shares | Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 16, 2017USD ($) |
Related Party Transaction [Line Items] | |||||||
Consideration transferred for asset acquisition | $ 663,615 | ||||||
Proceeds from sales of real estate | $ 147,824 | 454,542 | $ 212,250 | ||||
Proceeds from issuance of common stock/units, net | $ 0 | $ 0 | $ 647,382 | ||||
Blackstone And Farallon Funds | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 18,673,808 | ||||||
Proceeds from issuance of common stock/units, net | $ 342,700 | ||||||
Selling Stockholders | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 9,792,233 | ||||||
Hudson Pacific Properties, Inc. | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares) | shares | 8,881,575 | ||||||
Proceeds from issuance of common stock/units, net | $ 310,900 | ||||||
Disposal Group, Not Discontinued Operations | |||||||
Related Party Transaction [Line Items] | |||||||
Notes payable, held-for-sale | $ 216,000 | ||||||
Ferry Building Property | |||||||
Related Party Transaction [Line Items] | |||||||
Consideration transferred for asset acquisition | $ 291,000 | ||||||
Pinnacle I and II | Disposal Group, Not Discontinued Operations | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from disposition of real estate held-for-sale | $ 350,000 | ||||||
222 Kearny Street | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from sales of real estate | $ 51,800 | ||||||
11601 Wilshire | |||||||
Related Party Transaction [Line Items] | |||||||
Area of leased real estate (in square feet) | ft² | 6,638 | ||||||
Lease term | 8 years | ||||||
Annualized rent payment | $ 279 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Oct. 05, 2018 | Dec. 31, 2019 |
Real Estate Technology Venture Capital Fund | ||
Loss Contingencies | ||
Commitment to fund amount | $ 20,000,000 | |
Contributions to date | $ 2,800,000 | |
Amount remaining to be contributed | 17,200,000 | |
Revolving Credit Facility | Unsecured Debt | ||
Loss Contingencies | ||
Letters of credit outstanding | $ 3,400,000 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Significant Noncash Transactions [Line Items] | |||
Cash paid for interest, net of capitalized interest | $ 99,961 | $ 78,495 | $ 77,234 |
Accounts payable and accrued liabilities for real estate investments | (8,759) | (13,431) | (19,587) |
Reclassification of investment in unconsolidated entities for real estate investments | 0 | 0 | 7,835 |
Assumption of debt in connection with property acquisitions | 0 | 139,003 | 0 |
Redeemable non-controlling interest in consolidated real estate entities | 0 | 12,749 | 0 |
Relief of debt in conjunction with sale of real estate | 0 | 0 | (216,000) |
Proceeds from sale of real estate | 0 | 0 | 216,000 |
Hudson Pacific Partners, L.P. | |||
Other Significant Noncash Transactions [Line Items] | |||
Cash paid for interest, net of capitalized interest | 99,961 | 78,495 | 77,234 |
Accounts payable and accrued liabilities for real estate investments | (8,759) | (13,431) | (19,587) |
Reclassification of investment in unconsolidated entities for real estate investments | 0 | 0 | 7,835 |
Assumption of debt in connection with property acquisitions | 0 | 139,003 | 0 |
Redeemable non-controlling interest in consolidated real estate entities | 0 | 12,749 | 0 |
Relief of debt in conjunction with sale of real estate | $ 0 | $ 0 | $ (216,000) |
Quarterly Financial Informati_3
Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $ 216,850 | $ 208,218 | $ 196,656 | $ 197,389 | $ 198,433 | $ 180,698 | $ 175,169 | $ 174,118 | $ 818,182 | $ 728,418 | $ 728,139 |
Total operating expense | (172,798) | (165,851) | (158,385) | (158,523) | (157,021) | (144,310) | (139,388) | (139,021) | (655,557) | (579,740) | (591,536) |
Net income (loss) | 16,963 | 62,955 | 12,823 | (36,895) | 19,257 | 20,270 | 19,691 | 52,563 | $ 55,846 | $ 111,781 | $ 94,561 |
Net income attributable to the Company’s stockholders | $ 13,576 | $ 58,755 | $ 9,786 | $ (39,392) | $ 15,944 | $ 17,367 | $ 16,202 | $ 48,577 | |||
Net income (loss) attributable to common stockholders' per share - basic (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Net income (loss) attributable to common stockholders' per share - diluted (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Net income (loss) available to common unitholders | $ 42,725 | $ 98,090 | $ 67,587 | ||||||||
Hudson Pacific Partners, L.P. | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Revenues | $ 216,850 | $ 208,218 | $ 196,656 | $ 197,389 | $ 198,433 | $ 180,698 | $ 175,169 | $ 174,118 | 818,182 | 728,418 | 728,139 |
Total operating expense | (172,798) | (165,851) | (158,385) | (158,523) | (157,021) | (144,310) | (139,388) | (139,021) | (655,557) | (579,740) | (591,536) |
Net income (loss) | 16,963 | 62,955 | 12,823 | (36,895) | 19,257 | 20,270 | 19,691 | 52,563 | 55,846 | 111,781 | 94,561 |
Net income attributable to the Company’s stockholders | 44,488 | 99,729 | 69,601 | ||||||||
Net income (loss) available to common unitholders | $ 13,639 | $ 59,029 | $ 9,863 | $ (39,577) | $ 16,003 | $ 17,430 | $ 16,261 | $ 48,754 | $ 42,954 | $ 98,448 | $ 67,962 |
Net income (loss) attributable to common unitholders - basic (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Net income (loss) attributable to common unitholders — diluted (in dollars per share) | $ 0.09 | $ 0.38 | $ 0.06 | $ (0.26) | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.31 | $ 0.28 | $ 0.63 | $ 0.44 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - 2010 Plan - Executive Officer | Jan. 01, 2020 |
Share-based Payment Arrangement, Tranche One | |
Subsequent Event [Line Items] | |
Award performance period (in years) | 3 years |
Share-based Payment Arrangement, Tranche Two | |
Subsequent Event [Line Items] | |
Award performance period (in years) | 1 year |
Schedule III - Real Estate an_2
Schedule III - Real Estate and Accumulated Depreciation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | $ 370,459,000 | ||
Initial Costs, Land | 1,313,412,000 | ||
Initial Costs, Building & Improvements | 4,345,563,000 | ||
Costs Capitalized Subsequent to Acquisition | 1,610,153,000 | ||
Total Costs, Land | 1,313,412,000 | ||
Total Costs, Building & Improvements | 5,955,716,000 | ||
Total Costs | 7,269,128,000 | ||
Accumulated depreciation | (898,279,000) | $ (695,631,000) | $ (521,370,000) |
Real estate, federal income tax basis | $ 7,000,000,000 | ||
Building and improvements | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Estimated useful life | 39 years | ||
Land improvements | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Estimated useful life | 15 years | ||
Unsecured Debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | $ 2,475,000,000 | 2,275,000,000 | |
Unsecured Debt | Hudson Pacific Partners, L.P. | Unsecured Revolving Credit Facility | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Maximum borrowing capacity | 600,000,000 | ||
Notes payable | 75,000,000 | ||
Secured Debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 370,459,000 | 365,381,000 | |
Secured Debt | One Westside and 10850 Pico | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Maximum borrowing capacity | 414,600,000 | ||
Notes payable | 5,646,000 | $ 0 | |
In-Substance Defeased Debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 135,030,000 | ||
Joint venture partner debt | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Notes payable | 66,136,000 | ||
Office | 875 Howard Street Property | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 18,058,000 | ||
Initial Costs, Building & Improvements | 41,046,000 | ||
Costs Capitalized Subsequent to Acquisition | 23,902,000 | ||
Total Costs, Land | 18,058,000 | ||
Total Costs, Building & Improvements | 64,948,000 | ||
Total Costs | 83,006,000 | ||
Accumulated depreciation | (18,153,000) | ||
Office | 6040 Sunset (formerly Technicolor Building) | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 6,599,000 | ||
Initial Costs, Building & Improvements | 27,187,000 | ||
Costs Capitalized Subsequent to Acquisition | 28,167,000 | ||
Total Costs, Land | 6,599,000 | ||
Total Costs, Building & Improvements | 55,354,000 | ||
Total Costs | 61,953,000 | ||
Accumulated depreciation | (23,962,000) | ||
Office | ICON, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 151,402,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 151,402,000 | ||
Total Costs | 151,402,000 | ||
Accumulated depreciation | (16,149,000) | ||
Office | CUE, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 45,603,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 45,603,000 | ||
Total Costs | 45,603,000 | ||
Accumulated depreciation | (3,111,000) | ||
Office | EPIC, Los Angeles | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 10,606,000 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 186,054,000 | ||
Total Costs, Land | 10,606,000 | ||
Total Costs, Building & Improvements | 186,054,000 | ||
Total Costs | 196,660,000 | ||
Accumulated depreciation | (1,516,000) | ||
Office | Del Amo Office | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 18,000,000 | ||
Costs Capitalized Subsequent to Acquisition | 2,868,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 20,868,000 | ||
Total Costs | 20,868,000 | ||
Accumulated depreciation | (6,289,000) | ||
Office | 1455 Market | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 41,226,000 | ||
Initial Costs, Building & Improvements | 34,990,000 | ||
Costs Capitalized Subsequent to Acquisition | 100,415,000 | ||
Total Costs, Land | 41,226,000 | ||
Total Costs, Building & Improvements | 135,405,000 | ||
Total Costs | 176,631,000 | ||
Accumulated depreciation | (42,853,000) | ||
Office | Rincon Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 58,251,000 | ||
Initial Costs, Building & Improvements | 110,656,000 | ||
Costs Capitalized Subsequent to Acquisition | 42,636,000 | ||
Total Costs, Land | 58,251,000 | ||
Total Costs, Building & Improvements | 153,292,000 | ||
Total Costs | 211,543,000 | ||
Accumulated depreciation | (35,797,000) | ||
Office | 10950 Washington | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 26,312,000 | ||
Initial Costs, Land | 17,979,000 | ||
Initial Costs, Building & Improvements | 25,110,000 | ||
Costs Capitalized Subsequent to Acquisition | 920,000 | ||
Total Costs, Land | 17,979,000 | ||
Total Costs, Building & Improvements | 26,030,000 | ||
Total Costs | 44,009,000 | ||
Accumulated depreciation | (6,007,000) | ||
Office | 604 Arizona | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 5,620,000 | ||
Initial Costs, Building & Improvements | 14,745,000 | ||
Costs Capitalized Subsequent to Acquisition | 4,453,000 | ||
Total Costs, Land | 5,620,000 | ||
Total Costs, Building & Improvements | 19,198,000 | ||
Total Costs | 24,818,000 | ||
Accumulated depreciation | (4,113,000) | ||
Office | 275 Brannan Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 4,187,000 | ||
Initial Costs, Building & Improvements | 8,063,000 | ||
Costs Capitalized Subsequent to Acquisition | 15,285,000 | ||
Total Costs, Land | 4,187,000 | ||
Total Costs, Building & Improvements | 23,348,000 | ||
Total Costs | 27,535,000 | ||
Accumulated depreciation | (9,214,000) | ||
Office | 625 Second Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 10,744,000 | ||
Initial Costs, Building & Improvements | 42,650,000 | ||
Costs Capitalized Subsequent to Acquisition | 6,668,000 | ||
Total Costs, Land | 10,744,000 | ||
Total Costs, Building & Improvements | 49,318,000 | ||
Total Costs | 60,062,000 | ||
Accumulated depreciation | (11,379,000) | ||
Office | 6922 Hollywood | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 16,608,000 | ||
Initial Costs, Building & Improvements | 72,392,000 | ||
Costs Capitalized Subsequent to Acquisition | 20,335,000 | ||
Total Costs, Land | 16,608,000 | ||
Total Costs, Building & Improvements | 92,727,000 | ||
Total Costs | 109,335,000 | ||
Accumulated depreciation | (18,765,000) | ||
Office | 10900 Washington | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 1,400,000 | ||
Initial Costs, Building & Improvements | 1,200,000 | ||
Costs Capitalized Subsequent to Acquisition | 141,000 | ||
Total Costs, Land | 1,400,000 | ||
Total Costs, Building & Improvements | 1,341,000 | ||
Total Costs | 2,741,000 | ||
Accumulated depreciation | (312,000) | ||
Office | 901 Market Street | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 17,882,000 | ||
Initial Costs, Building & Improvements | 79,305,000 | ||
Costs Capitalized Subsequent to Acquisition | 15,318,000 | ||
Total Costs, Land | 17,882,000 | ||
Total Costs, Building & Improvements | 94,623,000 | ||
Total Costs | 112,505,000 | ||
Accumulated depreciation | (20,736,000) | ||
Office | Element LA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 168,000,000 | ||
Initial Costs, Land | 79,769,000 | ||
Initial Costs, Building & Improvements | 19,755,000 | ||
Costs Capitalized Subsequent to Acquisition | 95,891,000 | ||
Total Costs, Land | 79,769,000 | ||
Total Costs, Building & Improvements | 115,646,000 | ||
Total Costs | 195,415,000 | ||
Accumulated depreciation | (17,704,000) | ||
Office | 3401 Exposition | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 14,120,000 | ||
Initial Costs, Building & Improvements | 11,319,000 | ||
Costs Capitalized Subsequent to Acquisition | 12,072,000 | ||
Total Costs, Land | 14,120,000 | ||
Total Costs, Building & Improvements | 23,391,000 | ||
Total Costs | 37,511,000 | ||
Accumulated depreciation | (4,756,000) | ||
Office | 505 First | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 22,917,000 | ||
Initial Costs, Building & Improvements | 133,034,000 | ||
Costs Capitalized Subsequent to Acquisition | 5,065,000 | ||
Total Costs, Land | 22,917,000 | ||
Total Costs, Building & Improvements | 138,099,000 | ||
Total Costs | 161,016,000 | ||
Accumulated depreciation | (26,618,000) | ||
Office | 83 King | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 12,982,000 | ||
Initial Costs, Building & Improvements | 51,403,000 | ||
Costs Capitalized Subsequent to Acquisition | 10,487,000 | ||
Total Costs, Land | 12,982,000 | ||
Total Costs, Building & Improvements | 61,890,000 | ||
Total Costs | 74,872,000 | ||
Accumulated depreciation | (11,431,000) | ||
Office | Met Park North | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 64,500,000 | ||
Initial Costs, Land | 28,996,000 | ||
Initial Costs, Building & Improvements | 71,768,000 | ||
Costs Capitalized Subsequent to Acquisition | 1,203,000 | ||
Total Costs, Land | 28,996,000 | ||
Total Costs, Building & Improvements | 72,971,000 | ||
Total Costs | 101,967,000 | ||
Accumulated depreciation | (14,721,000) | ||
Office | Northview Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 4,803,000 | ||
Initial Costs, Building & Improvements | 41,191,000 | ||
Costs Capitalized Subsequent to Acquisition | 2,878,000 | ||
Total Costs, Land | 4,803,000 | ||
Total Costs, Building & Improvements | 44,069,000 | ||
Total Costs | 48,872,000 | ||
Accumulated depreciation | (8,945,000) | ||
Office | 411 First , Greater Seattle, WA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 27,684,000 | ||
Initial Costs, Building & Improvements | 29,824,000 | ||
Costs Capitalized Subsequent to Acquisition | 18,821,000 | ||
Total Costs, Land | 27,684,000 | ||
Total Costs, Building & Improvements | 48,645,000 | ||
Total Costs | 76,329,000 | ||
Accumulated depreciation | (9,600,000) | ||
Office | 450 Alaskan | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 86,457,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 86,457,000 | ||
Total Costs | 86,457,000 | ||
Accumulated depreciation | (5,556,000) | ||
Office | 95 Jackson, Greater Seattle, WA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 16,869,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 16,869,000 | ||
Total Costs | 16,869,000 | ||
Accumulated depreciation | (1,816,000) | ||
Office | Palo Alto Square | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 326,033,000 | ||
Costs Capitalized Subsequent to Acquisition | 36,283,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 362,316,000 | ||
Total Costs | 362,316,000 | ||
Accumulated depreciation | (59,597,000) | ||
Office | 3400 Hillview | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 159,641,000 | ||
Costs Capitalized Subsequent to Acquisition | 2,514,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 162,155,000 | ||
Total Costs | 162,155,000 | ||
Accumulated depreciation | (34,698,000) | ||
Office | Foothill Research Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 133,994,000 | ||
Costs Capitalized Subsequent to Acquisition | 4,955,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 138,949,000 | ||
Total Costs | 138,949,000 | ||
Accumulated depreciation | (28,265,000) | ||
Office | Page Mill Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 147,625,000 | ||
Costs Capitalized Subsequent to Acquisition | 6,748,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 154,373,000 | ||
Total Costs | 154,373,000 | ||
Accumulated depreciation | (30,807,000) | ||
Office | Clocktower Square | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 93,949,000 | ||
Costs Capitalized Subsequent to Acquisition | 6,275,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 100,224,000 | ||
Total Costs | 100,224,000 | ||
Accumulated depreciation | (12,184,000) | ||
Office | 3176 Porter | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 34,561,000 | ||
Costs Capitalized Subsequent to Acquisition | 864,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 35,425,000 | ||
Total Costs | 35,425,000 | ||
Accumulated depreciation | (6,718,000) | ||
Office | Towers at Shore Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 72,673,000 | ||
Initial Costs, Building & Improvements | 144,188,000 | ||
Costs Capitalized Subsequent to Acquisition | 21,053,000 | ||
Total Costs, Land | 72,673,000 | ||
Total Costs, Building & Improvements | 165,241,000 | ||
Total Costs | 237,914,000 | ||
Accumulated depreciation | (23,781,000) | ||
Office | Skyway Landing | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 37,959,000 | ||
Initial Costs, Building & Improvements | 63,559,000 | ||
Costs Capitalized Subsequent to Acquisition | 4,211,000 | ||
Total Costs, Land | 37,959,000 | ||
Total Costs, Building & Improvements | 67,770,000 | ||
Total Costs | 105,729,000 | ||
Accumulated depreciation | (10,332,000) | ||
Office | Shorebreeze | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 69,448,000 | ||
Initial Costs, Building & Improvements | 59,806,000 | ||
Costs Capitalized Subsequent to Acquisition | 16,274,000 | ||
Total Costs, Land | 69,448,000 | ||
Total Costs, Building & Improvements | 76,080,000 | ||
Total Costs | 145,528,000 | ||
Accumulated depreciation | (12,350,000) | ||
Office | 555 Twin Dolphin | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 40,614,000 | ||
Initial Costs, Building & Improvements | 73,457,000 | ||
Costs Capitalized Subsequent to Acquisition | 11,025,000 | ||
Total Costs, Land | 40,614,000 | ||
Total Costs, Building & Improvements | 84,482,000 | ||
Total Costs | 125,096,000 | ||
Accumulated depreciation | (11,416,000) | ||
Office | 333 Twin Dolphin | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 36,441,000 | ||
Initial Costs, Building & Improvements | 64,892,000 | ||
Costs Capitalized Subsequent to Acquisition | 19,820,000 | ||
Total Costs, Land | 36,441,000 | ||
Total Costs, Building & Improvements | 84,712,000 | ||
Total Costs | 121,153,000 | ||
Accumulated depreciation | (12,727,000) | ||
Office | Metro Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 313,683,000 | ||
Costs Capitalized Subsequent to Acquisition | 57,635,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 371,318,000 | ||
Total Costs | 371,318,000 | ||
Accumulated depreciation | (58,166,000) | ||
Office | Concourse | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 45,085,000 | ||
Initial Costs, Building & Improvements | 224,271,000 | ||
Costs Capitalized Subsequent to Acquisition | 35,084,000 | ||
Total Costs, Land | 45,085,000 | ||
Total Costs, Building & Improvements | 259,355,000 | ||
Total Costs | 304,440,000 | ||
Accumulated depreciation | (39,772,000) | ||
Office | Gateway | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 33,117,000 | ||
Initial Costs, Building & Improvements | 121,217,000 | ||
Costs Capitalized Subsequent to Acquisition | 44,513,000 | ||
Total Costs, Land | 33,117,000 | ||
Total Costs, Building & Improvements | 165,730,000 | ||
Total Costs | 198,847,000 | ||
Accumulated depreciation | (29,242,000) | ||
Office | Metro Plaza | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 16,038,000 | ||
Initial Costs, Building & Improvements | 106,156,000 | ||
Costs Capitalized Subsequent to Acquisition | 25,650,000 | ||
Total Costs, Land | 16,038,000 | ||
Total Costs, Building & Improvements | 131,806,000 | ||
Total Costs | 147,844,000 | ||
Accumulated depreciation | (19,687,000) | ||
Office | 1740 Technology | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 8,052,000 | ||
Initial Costs, Building & Improvements | 49,486,000 | ||
Costs Capitalized Subsequent to Acquisition | 3,302,000 | ||
Total Costs, Land | 8,052,000 | ||
Total Costs, Building & Improvements | 52,788,000 | ||
Total Costs | 60,840,000 | ||
Accumulated depreciation | (7,768,000) | ||
Office | Skyport Plaza | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 29,033,000 | ||
Initial Costs, Building & Improvements | 153,844,000 | ||
Costs Capitalized Subsequent to Acquisition | 2,575,000 | ||
Total Costs, Land | 29,033,000 | ||
Total Costs, Building & Improvements | 156,419,000 | ||
Total Costs | 185,452,000 | ||
Accumulated depreciation | (19,040,000) | ||
Office | Techmart Commerce Center | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 66,660,000 | ||
Costs Capitalized Subsequent to Acquisition | 19,320,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 85,980,000 | ||
Total Costs | 85,980,000 | ||
Accumulated depreciation | (15,848,000) | ||
Office | 4th and Traction | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 12,140,000 | ||
Initial Costs, Building & Improvements | 37,110,000 | ||
Costs Capitalized Subsequent to Acquisition | 62,495,000 | ||
Total Costs, Land | 12,140,000 | ||
Total Costs, Building & Improvements | 99,605,000 | ||
Total Costs | 111,745,000 | ||
Accumulated depreciation | (6,126,000) | ||
Office | MaxWell | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 13,040,000 | ||
Initial Costs, Building & Improvements | 26,960,000 | ||
Costs Capitalized Subsequent to Acquisition | 57,449,000 | ||
Total Costs, Land | 13,040,000 | ||
Total Costs, Building & Improvements | 84,409,000 | ||
Total Costs | 97,449,000 | ||
Accumulated depreciation | (3,051,000) | ||
Office | 11601 Wilshire | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 28,978,000 | ||
Initial Costs, Building & Improvements | 321,273,000 | ||
Costs Capitalized Subsequent to Acquisition | 49,655,000 | ||
Total Costs, Land | 28,978,000 | ||
Total Costs, Building & Improvements | 370,928,000 | ||
Total Costs | 399,906,000 | ||
Accumulated depreciation | (37,408,000) | ||
Office | Hill7 | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 101,000,000 | ||
Initial Costs, Land | 36,888,000 | ||
Initial Costs, Building & Improvements | 137,079,000 | ||
Costs Capitalized Subsequent to Acquisition | 19,352,000 | ||
Total Costs, Land | 36,888,000 | ||
Total Costs, Building & Improvements | 156,431,000 | ||
Total Costs | 193,319,000 | ||
Accumulated depreciation | (16,605,000) | ||
Office | Page Mill Hill | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 131,402,000 | ||
Costs Capitalized Subsequent to Acquisition | 7,641,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 139,043,000 | ||
Total Costs | 139,043,000 | ||
Accumulated depreciation | (14,754,000) | ||
Office | Harlow, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 7,455,000 | ||
Initial Costs, Building & Improvements | 0 | ||
Costs Capitalized Subsequent to Acquisition | 41,285,000 | ||
Total Costs, Land | 7,455,000 | ||
Total Costs, Building & Improvements | 41,285,000 | ||
Total Costs | 48,740,000 | ||
Accumulated depreciation | 0 | ||
Office | One Westside, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 5,646,000 | ||
Initial Costs, Land | 110,438,000 | ||
Initial Costs, Building & Improvements | 35,011,000 | ||
Costs Capitalized Subsequent to Acquisition | 44,339,000 | ||
Total Costs, Land | 110,438,000 | ||
Total Costs, Building & Improvements | 79,350,000 | ||
Total Costs | 189,788,000 | ||
Accumulated depreciation | 0 | ||
Office | 10850 Pico, Los Angeles, CA | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 34,682,000 | ||
Initial Costs, Building & Improvements | 16,313,000 | ||
Costs Capitalized Subsequent to Acquisition | (2,326,000) | ||
Total Costs, Land | 34,682,000 | ||
Total Costs, Building & Improvements | 13,987,000 | ||
Total Costs | 48,669,000 | ||
Accumulated depreciation | (715,000) | ||
Office | Ferry Building | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 0 | ||
Initial Costs, Building & Improvements | 268,292,000 | ||
Costs Capitalized Subsequent to Acquisition | 15,505,000 | ||
Total Costs, Land | 0 | ||
Total Costs, Building & Improvements | 283,797,000 | ||
Total Costs | 283,797,000 | ||
Accumulated depreciation | (11,374,000) | ||
Studio | Sunset Gower Studios | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 5,001,000 | ||
Initial Costs, Land | 79,320,000 | ||
Initial Costs, Building & Improvements | 64,697,000 | ||
Costs Capitalized Subsequent to Acquisition | 41,549,000 | ||
Total Costs, Land | 79,320,000 | ||
Total Costs, Building & Improvements | 106,246,000 | ||
Total Costs | 185,566,000 | ||
Accumulated depreciation | (30,007,000) | ||
Studio | Sunset Bronson | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 67,092,000 | ||
Initial Costs, Building & Improvements | 32,374,000 | ||
Costs Capitalized Subsequent to Acquisition | 33,455,000 | ||
Total Costs, Land | 67,092,000 | ||
Total Costs, Building & Improvements | 65,829,000 | ||
Total Costs | 132,921,000 | ||
Accumulated depreciation | (16,900,000) | ||
Studio | Sunset Las Palmas Studios | |||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | |||
Encumbrances | 0 | ||
Initial Costs, Land | 134,488,000 | ||
Initial Costs, Building & Improvements | 104,392,000 | ||
Costs Capitalized Subsequent to Acquisition | 27,743,000 | ||
Total Costs, Land | 134,488,000 | ||
Total Costs, Building & Improvements | 132,135,000 | ||
Total Costs | 266,623,000 | ||
Accumulated depreciation | $ (9,438,000) |
Schedule III - Real Estate an_3
Schedule III - Real Estate and Accumulated Depreciation - Reconciliation of Carrying Amount of Real Estate and Accumulated Depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate [Roll Forward] | |||
Beginning balance | $ 7,059,537 | $ 6,644,249 | $ 6,507,484 |
Acquisitions | 0 | 505,257 | 255,848 |
Improvements, capitalized costs | 395,390 | 364,721 | 330,809 |
Total additions during period | 395,390 | 869,978 | 586,657 |
Disposal (fully depreciated assets and early terminations) | (27,957) | (27,821) | (41,337) |
Impairment loss | (52,201) | 0 | 0 |
Cost of property sold | (105,641) | (426,869) | (408,555) |
Total deductions during period | (185,799) | (454,690) | (449,892) |
Ending balance | 7,269,128 | 7,059,537 | 6,644,249 |
Reclassification to assets associated with real estate held for sale | 0 | 0 | (424,888) |
Total investment in real estate, end of year | 7,269,128 | 7,059,537 | 6,219,361 |
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate, Accumulated Depreciation [Roll Forward] | |||
Total accumulated depreciation, beginning of year | (695,631) | (549,411) | (423,950) |
Depreciation of real estate | (235,097) | (203,347) | (206,838) |
Total additions during period | (235,097) | (203,347) | (206,838) |
Deletions | 26,533 | 27,410 | 37,925 |
Write-offs due to sale | 5,916 | 29,717 | 43,452 |
Total deductions during period | 32,449 | 57,127 | 81,377 |
Ending balance, before reclassification to assets associated with real estate held for sale | (898,279) | (695,631) | (549,411) |
Reclassification to assets associated with real estate held for sale | 0 | 0 | 28,041 |
Total accumulated depreciation, end of year | $ (898,279) | $ (695,631) | $ (521,370) |
Uncategorized Items - hpp-20191
Label | Element | Value |
Accounting Standards Update 2017-12 [Member] | Non-controlling Interests Common units in the Operating Partnership [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,000 |
Accounting Standards Update 2017-12 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 230,000 |