8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 _________________________________

FORM 8-K

 _________________________________

CURRENT REPORT

Pursuant to Section 13 OR 15 (d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 15, 2011

_________________________________

Hudson Pacific Properties, Inc.

(Exact name of registrant as specified in its charter)

Maryland	001-34789	27-1430478
(State or other	(Commission File Number)	(IRS Employer
jurisdiction of		Identification No.)
incorporation)

11601 Wilshire Blvd., Suite 1600 Los Angeles, California	90025
(Address of Principal Executive Offices)	(Zip Code)

(310) 445-5700

Registrant's Telephone Number, Including Area Code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

_________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1

Section 2 — Financial Information

Item 2.02     Results of Operations and Financial Condition.

On March 15, 2011, Hudson Pacific Properties, Inc. (also referred to herein as the “Company,” “we,” “us,” or “our”) issued a press release regarding our fourth quarter and year-end financial results for the period ended December 31, 2010. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on March 15, 2011, we made available on our Web site (www.hudsonpacificproperties.com) certain supplemental information concerning our financial results and operations for the fourth quarter and year ended December 31, 2010. A copy of the supplemental information is furnished herewith as Exhibit 99.2, which is incorporated herein by reference.

Exhibits 99.1 and 99.2 are being furnished pursuant to Item 2.02 and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Section 7 — Regulation FD

Item 7.01     Regulation FD Disclosure.

As discussed in Item 2.02 above, we issued a press release regarding our fourth quarter and year-end financial results for the period ended December 31, 2010 and made available on our Web site certain supplemental information relating to our fourth quarter and year-end financial results for the period ended December 31, 2010.

The information being furnished pursuant to Item 7.01 shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act regardless of any general incorporation language in such filing.

Section 9 — Financial Statements and Exhibits

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1**	Press release dated March 15, 2011 regarding the Company's fourth quarter and year-end financial results for the period ended December 31, 2010.
99.2**	Supplemental Operating and Financial Data for the fourth quarter and fiscal year ended December 31, 2010.

** Furnished herewith.

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	HUDSON PACIFIC PROPERTIES, INC.
Date: March 15, 2011	By:	/s/ Mark Lammas
		Mark Lammas
		Chief Financial Officer

3

EXHBIT INDEX

Exhibit No.	Description
99.1**	Press release dated March 15, 2011 regarding the Company's fourth quarter and year-end financial results for the period ended December 31, 2010.
99.2**	Supplemental Operating and Financial Data for the fourth quarter and fiscal year ended December 31, 2010.

** Furnished herewith.

4

EX-99.1

Hudson Pacific Properties, Inc. Announces Fourth Quarter and

Full Year 2010 Financial Results

Los Angeles, CA, March 15, 2011 - Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today announced fourth quarter and year-end financial results for the year ended December 31, 2010.

Financial Results

Funds From Operations (FFO) (excluding specified items) for the three months ended December 31, 2010 totaled $5.1 million, or $0.21 per diluted share. These results exclude expenses associated with the acquisition of operating properties of $1.6 million, or $(0.06) per diluted share, and a one-time property tax expense reduction of $1.1 million, or $0.04 per diluted share. FFO including these specified items for the three months ended December 31, 2010 totaled $4.6 million.

The Company reported a net loss attributable to common shareholders of $1.2 million, or $(0.05) per diluted share, for the three months ended December 31, 2010, compared to net loss attributable to common shareholders of $0.8 million for the three months ended December 31, 2009. For the year ended December 31, 2010, the Company reported a net loss attributable to common shareholders of $3.3 million, compared to a net loss attributable to common shareholders of $0.6 million for the year ended December 31, 2009.

“We completed four important acquisitions on assets totaling 1.9 million square feet last quarter, including our 222 Kearny Street office property, 1455 Market Street office property and joint venture investment in One and Two Rincon Center, all in San Francisco, and 10950 Washington Blvd. office campus in Los Angeles, all of which are strategically located, quality buildings with solid occupancies and amenities meeting our investment criteria,” said Mr. Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. “We also experienced strong performance on our existing assets, especially at our media and entertainment campuses, where we continue to see steady improvement in occupancy.”

Fourth Quarter Highlights

•     FFO (excluding specified items) of $5.1 million, or $0.21 per diluted share, up from $4.4 million (excluding expenses associated with acquisitions of operating properties), or $0.18 per diluted share, in the third quarter;

•     Acquired three assets and completed a joint venture investment on office properties totaling 1.9 million square feet;

•     Improved trailing 12-month occupancy for the media and entertainment portfolio to 72.6%, compared to 68.3% for the trailing 12-month period ended December 31, 2009;

•     Generated net proceeds of approximately $83.9 million through the public offering of 3.5 million shares of 8.375% Series B Cumulative Preferred Stock;

•     Declared and paid quarterly dividend of $0.095 per common share; and

•     Declared and paid initial dividend of $0.12214 per share on 8.375% Series B Cumulative Preferred Stock.

Combined Operating Results For The Three Months Ended December 31, 2010

Total revenue during the quarter increased 98.9% to $21.1 million from $10.6 million a year ago. The increase in total revenue was primarily attributed to a $7.6 million increase in rental revenue to $14.9 million, a $1.3 million increase in tenant recoveries to $2.5 million, and a $1.4 million increase in other property-related revenue to $3.4 million. The increase in rental revenue from a year ago was largely the result of rental revenue from office properties acquired in connection with the Company's initial public offering and during the third and fourth quarters of 2010.

Total operating expenses increased 79.8% to $17.2 million from $9.6 million a year ago. The increase in total operating expenses was primarily the result of a $2.6 million increase in office operating expenses to $4.6 million, a $3.4 million increase in depreciation and amortization to $5.9 million, and a $2.1 million increase in general and administrative expenses, with no comparable expense in the prior period, partially offset by a $0.5 million decrease in media and

entertainment operating expenses to $4.6 million (including the one-time property tax expense reduction of $1.1 million). The increase in office operating expenses from the fourth quarter of 2009 was primarily the result of expenses related to office properties acquired in connection with the Company's initial public offering and during the third and fourth quarters of 2010.

Income from operations increased 279.0% to $3.9 million, compared to income from operations of $1.0 million a year ago.

Interest expense during the fourth quarter increased 26.1% to $2.6 million, compared to interest expense of $2.1 million a year ago. At December 31, 2010, the Company had $342.1 million of notes payable related to some of its properties, compared to $189.5 million of notes payable at December 31, 2009.

Segment Operating Results For the Three Months Ended December 31, 2010

Office Properties

Total revenue at the Company's office properties increased 244.9% to $11.7 million from $3.4 million in the fourth quarter of 2009. The increase was primarily the result of a $6.8 million increase in rental revenue to $9.5 million, and a $1.5 million increase in tenant recoveries to $2.1 million, which were largely attributable to contributions from office properties acquired in connection with the Company's initial public offering and during the third and fourth quarters of 2010.

Office property operating expenses increased 138.3% to $4.6 million from $1.9 million a year ago.

At December 31, 2010, the Company's office portfolio was 88.0% leased and 87.7% occupied, up from 86.3% leased and 81.6% occupied at September 30, 2010. During the quarter, the Company executed seven new and renewal leases totaling 23,344 square feet.

Media and Entertainment Properties

Total revenue at the Company's media and entertainment properties increased 30.4% to $9.4 million from $7.2 million in the fourth quarter of 2009. The increase was primarily the result of a $0.9 million increase in rental revenue to $5.5 million, and a $1.4 million increase in other property-related revenue to $3.4 million. Increased revenue was largely attributable to steadily improving occupancy at the media and entertainment properties.

Total media and entertainment expenses decreased 9.3% to $4.6 million (including the one-time property tax expense reduction of $1.1 million), compared to $5.1 million in the same period a year ago. Excluding the one-time property tax expense reduction, media and entertainment expenses would have increased 12.1% to $5.7 million, primarily as a result of higher operating expenses associated with improved occupancy and higher production activity at the media and entertainment properties.

As of December 31, 2010, the trailing 12-month occupancy for the Company's media and entertainment portfolio increased to 72.6% from 68.3% for the trailing 12-month period ended December 31, 2009. For the month of December 2010, the media and entertainment portfolio was 78.7% leased, up from 76.5% for September 2010 and 63.7% for December 2009.

Combined Operating Results For The Year Ended December 31,2010

For the year ended December 31, 2010, total revenue was $60.6 million, an increase of 36.2% from $44.5 million for the year ended December 31, 2009. Total operating expenses were $50.4 million, compared to $36.7 million for the year ended December 31, 2009. As a result, income from operations was $10.2 million, compared to income from operations of $7.8 million for the year ended December 31, 2009. Acquisition-related expenses for the year ended December 31, 2010 was $4.3 million, with no comparable expense for the year ended December 31, 2009. The increase was due to transaction costs relating to the Company's acquisition of properties in connection with its IPO and related

formation transactions and properties acquired during the third and fourth quarters of 2010. Interest expense for the year ended December 31, 2010 increased 0.4% to $8.8 million from $8.8 million for the year ended December 31, 2009.

Balance Sheet

At December 31, 2010, the Company had total assets of $1.0 billion, including cash and cash equivalents of $48.9 million. In addition, at December 31, 2010, the Company had total capacity of approximately $147.8 million on its $200 million secured credit facility, $36.7 million of which remained undrawn.

Financings

On February 11, 2011, the Company closed a five-year term loan totaling $92.0 million with Wells Fargo Bank, N.A. secured by the Company's Sunset Gower and Sunset Bronson media and entertainment campuses. The loan bears interest at a rate equal to one-month LIBOR plus 350 basis points. $37.0 million of the loan is currently subject to an interest rate swap agreement that fixes one-month LIBOR to a rate of 75 basis points through April 30, 2011. The Company is required to hedge at least half of the $92.0 million term loan not later than March 28, 2011.

Proceeds from the loan were used to fully refinance a $37.0 million mortgage loan secured by our Sunset Bronson campus that was scheduled to mature on April 30, 2011. The remaining proceeds were used to partially pay down the Company's $200 million secured credit facility. The Company has resulting undrawn availability of approximately $90.6 million on its $200 million secured credit facility.

Dividend

The Company's Board of Directors declared a dividend on its common stock of $0.095 per share for the fourth quarter of 2010, and on its 8.375% Series B Cumulative Preferred Stock of $0.12214 for the partial period commencing December 10, 2010 and ending December 31, 2010. Both dividends were paid on December 31, 2010, to stockholders of record on December 20, 2010.

2011 Outlook

As highlighted earlier, during the fourth quarter of 2010, the Company completed several material acquisitions and an issuance of 3.5 million shares of 8.375% Series B Cumulative Preferred Stock. The Company subsequently completed a term loan secured by its Sunset Gower and Sunset Bronson media and entertainment campuses. The impact of two of the acquisitions, 1455 Market Street and Rincon Center, issuance of the Series B Preferred Stock, and term loan on Sunset Gower and Sunset Bronson was not included in the Company's previous 2011 FFO guidance given in November 2010. In light of this recent activity, the Company is increasing its full year 2011 FFO guidance to a range of $1.01 to $1.06 per diluted share from the previous range of $0.82 to $0.86 per diluted share. This guidance includes the impact of this recent activity, the anticipated completion of the Rincon Center acquisition and related project refinancing within the second quarter of 2011, and borrowings under our secured credit facility in connection therewith. This guidance excludes the one-time impact of an early lease termination payment received from a single-floor tenant at our City Plaza project of $2.8 million, or $0.11 per diluted share, during the first quarter of 2011. Except as noted, this guidance excludes any impact from future acquisitions, dispositions, equity purchases, debt financings or repayments, recapitalizations, or similar matters.

Supplemental Information

Supplemental financial information regarding the Company's fourth quarter and full year 2010 results may be found in the Investor Relations section of the Company's Web site at www.hudsonpacificproperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will host a conference call at 1:30 p.m. PDT / 4:30 p.m. EDT on Tuesday, March 15, 2011, to discuss results for the fourth quarter of 2010. To participate in the event by telephone, please dial (877) 941-4774 five to ten minutes prior to the start time (to allow time for registration) and use conference ID 4403921. International callers should dial (480) 629-9760 and use the same conference ID number. A digital replay of the conference call will be available beginning March 15, 2011, at 4:30 p.m. PDT / 7:30 p.m. EDT, through March 22, 2011, at 8:59 p.m. PDT / 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 (U.S.), and use conference ID 4403921. International callers should dial (858) 384-5517 and enter the same conference ID number. The call will also be broadcast live over the Internet and can be accessed on the Investor Relations section of the Company's Web site at www.hudsonpacificproperties.com. To listen to the live webcast, please visit the site at least 15 minutes prior to the start of the call in order to register, download and install any necessary audio software. A replay of the call will also be available for 90 days on the Company's website.

Use of Non-GAAP Information

We calculate funds from operations before non-controlling interest (FFO) in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO represents net income (loss), computed in accordance with accounting principles generally accepted in the United States of America (GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate depreciation and amortization (excluding amortization of above/below market lease intangible assets and liabilities and amortization of deferred financing costs and debt discounts/premium) and after adjustments for unconsolidated partnerships and joint ventures. We use FFO as a supplemental performance measure because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs. We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that results from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

About Hudson Pacific Properties

Hudson Pacific Properties, Inc. is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties and state-of-the-art media and entertainment properties in select growth markets primarily in Northern and Southern California. The Company's strategic investment program targets high barrier-to-entry, in-fill locations with favorable, long-term supply-demand characteristics in select target markets including Los Angeles, Orange County, San Diego, San Francisco, Silicon Valley and the East Bay. Its wholly owned portfolio includes 12 properties totaling approximately 3.4 million square feet, strategically located in many of the Company's target markets. Upon completion of the Rincon Center acquisition the Company's portfolio will consist of 13 properties totaling approximately 4.0 million square feet. The Company intends to elect to be taxed and to operate in a manner that will allow it to qualify as a real estate investment trust, or REIT, for federal income tax purposes, commencing with the taxable year ended December 31, 2010. Hudson Pacific Properties is a component of the Russell 2000® and the Russell 3000® indices. For additional information, visit www.hudsonpacificproperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends

and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the Company's final prospectus dated June 23, 2010, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

Investor Contact:

Hudson Pacific Properties, Inc.

Mark Lammas

Chief Financial Officer

(310) 445-5700

or

Investor / Media Contact:

Addo Communications, Inc.

Andrew Blazier

(310) 829-5400

andrewb@addocommunications.com

(FINANCIAL TABLES FOLLOW)

Hudson Pacific Properties, Inc.

Consolidated Balance Sheets

(Unaudited, in thousands, except share data)

	December 31, 2010			December 31, 2009
ASSETS
REAL ESTATE ASSETS
Land	$	329,630		$	193,042
Building and improvements	469,407			206,715
Tenant improvements	47,538			14,344
Furniture and fixtures	11,972			11,097
Property under development	7,904			4,148
Total real estate held for investment	866,451			429,346
Accumulated depreciation and amortization	(27,419		)	(16,868		)
Investment in real estate, net	839,032			412,478
Cash and cash equivalents	48,875			3,694
Restricted cash	4,121			4,231
Accounts receivable, net	4,478			1,273
Straight-line rent receivables	6,688			2,935
Deferred leasing costs and lease intangibles, net	85,286			19,219
Deferred financing costs, net	3,211			668
Goodwill	8,754			—
Prepaid expenses and other assets	4,130			3,736
TOTAL ASSETS	$	1,004,575		$	448,234
LIABILITIES AND EQUITY
Notes payable	$	342,060		$	189,518
Accounts payable and accrued liabilities	11,506			6,026
Below-market leases	20,994			11,636
Security deposits	5,052			2,939
Prepaid rent	10,559			11,102
Interest rate contracts	71			425
TOTAL LIABILITIES	390,242			221,646
6.25% Series A cumulative redeemable preferred units of the Operating Partnership	12,475			—
Redeemable non-controlling interest in consolidated real estate entity	40,328			—
EQUITY
Members' equity	—			223,240
Hudson Pacific Properties, Inc. stockholders' equity:
Series B cumulative redeemable preferred stock	87,500			—
Common stock, $0.01 par value 490,000,000 authorized, 22,436,950 outstanding at December 31, 2010	224			—
Additional paid-in capital	411,598			—
Accumulated other comprehensive income	6			—
Accumulated deficit	(3,482		)	—
Total Hudson Pacific Properties, Inc. stockholders' equity	495,846			223,240
Non-controlling interests:
Members in consolidated real estate entities	—			3,348
Unitholders in the Operating Partnership	65,684			—
	65,684			3,348
TOTAL EQUITY	561,530			226,588
TOTAL LIABILITIES AND EQUITY	$	1,004,575		$	448,234

Hudson Pacific Properties, Inc.

Combined Statements of Operations

(Unaudited, in thousands, except share and per share data)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Revenues
Office
Rental	$	9,461		$	2,697		$	22,247		$	11,046
Tenant recoveries	2,108			589			4,023			2,024
Other	108			100			233			252
Total office revenues	11,677			3,386			26,503			13,322
Media & entertainment
Rental	5,478			4,617			20,931			19,916
Tenant recoveries	392			567			1,571			1,792
Other property-related revenue	3,401			2,025			11,397			9,427
Other	142			7			238			64
Total media & entertainment revenues	9,413			7,216			34,137			31,199
Total revenues	21,090			10,602			60,640			44,521
Operating expenses
Office operating expenses	4,562			1,914			10,212			6,242
Media & entertainment operating expenses	4,621			5,094			19,815			19,545
General and administrative	2,114			—			4,493			—
Depreciation and amortization	5,927			2,574			15,912			10,908
Total operating expenses	17,224			9,582			50,432			36,695
Income from operations	$	3,866		$	1,020		$	10,208		$	7,826
Other expense (income)
Interest expense	2,635			2,090			8,831			8,792
Interest income	(22		)	(10		)	(59		)	(19		)
Unrealized (gain) on interest rate contracts	—			(192		)	(347		)	(400		)
Acquisition-related expenses	1,584			—			4,273			—
Other expenses	200			—			192			97
	$	4,397		$	1,888		$	12,890		$	8,470
Net loss	$	(531	)	$	(868	)	$	(2,682	)	$	(644	)
Less: Net income attributable to preferred non-controlling partnership interest	(622		)	—			(817		)	—
Less: Net income attributable to restricted shares	(25		)	—			(50		)	—
Less: Net income attributable to non-controlling members in consolidated real estate entities	(148		)	33			(119		)	29
Add: Net loss attributable to unitholders in the Operating Partnership	141			—			418			—
Net loss attributable to Hudson Pacific Properties, Inc. shareholders' / controlling member's equity	$	(1,185	)	$	(835	)	$	(3,250	)	$	(615	)
Net loss attributable to shareholders' per share - basic and diluted	$	(0.05	)	$	—		$	—		$	—
Weighted average shares of common stock outstanding - basic and diluted	21,946,508			—			—			—
Dividends declared per common share	$	0.095		$	—		$	—		$	—

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)

	Three Months Ended
	December 31, 2010
Reconciliation of net loss to Funds From Operations (FFO):
Net loss	$	(531	)
Adjustments:
Depreciation and amortization of real estate assets	5,927
Less: Net income attributable to non-controlling members in consolidated real estate entities	(148		)
Less: Net income attributable to preferred non-controlling partnership interest	(622		)
FFO	$	4,626
Specified items impacting FFO:
Acquisition-related expenses	1,584
One-time property tax expense reduction	(1,089		)
FFO (after specified items)	$	5,121
Weighted average common shares/units outstanding - diluted	24,833
FFO (after specified items) per common share/unit - diluted	$	0.21

EX-99.2

HUDSON PACIFIC PROPERTIES, INC.

FOURTH QUARTER 2010

Supplemental Operating and Financial Data

This Supplemental Operating and Financial Data contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Future events and actual results, financial and otherwise, may differ materially from the results discussed in the forward-looking statements. You should not rely on forward-looking statements as predictions of future events. Forward-looking statements involve numerous risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statement made by us. These risks and uncertainties include, but are not limited to: adverse economic and real estate developments in Southern and Northern California; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; the consequences of any possible future terrorist attacks; and other risks and uncertainties detailed in our Prospectus filed with the Securities and Exchange Commission on June 23, 2010. You are cautioned that the information contained herein speaks only as of the date hereof and Hudson Pacific Properties, Inc. assumes no obligation to update any forward-looking information, whether as a result of new information, future events or otherwise. For a discussion of important risks related to Hudson Pacific Properties, Inc.'s business, and an investment in its securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking information, see the discussion under the caption “Risk Factors” in Hudson Pacific Properties, Inc.'s Prospectus dated June 23, 2010. In light of these risks and uncertainties, any forward-looking events described herein or in Hudson Pacific Properties, Inc.'s March 2011 conference call may not occur.

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

TABLE OF CONTENTS

	PAGE
COMPANY BACKGROUND AND CORPORATE DATA	3 - 4
CONSOLIDATED FINANCIAL RESULTS
Balance Sheets	6
Quarterly Operating Results	7
Funds from Operations and Adjusted Funds from Operations	8
Same Property Statistical and Financial Data
Debt Summary	9
PORTFOLIO DATA
Office Portfolio Summary, Occupancy, and In-place Rents	11
Media & Entertainment Portfolio Summary, Occupancy, and In-place Rents	12
Ten Largest Office Tenants	13
Office Portfolio Leasing Activity	14
Office Lease Expirations - Annual	15
Quarterly Office Lease Expirations - Next Four Quarters	16
Office Portfolio Diversification	17
DEFINITIONS	18

2

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

COMPANY BACKGROUND

CORPORATE 11601 Wilshire Boulevard, Suite 1600, Los Angeles, California 90025 (310) 445-5700
BOARD OF DIRECTORS
Victor J. Coleman		Mark Burnett	Mark D. Linehan
Chairman of the Board and Chief Executive Officer, Hudson Pacific Properties, Inc		Independent Television Series Producer	President and Chief Executive Officer, Wynmark Company
Howard S. Stern		Richard B. Fried	Robert M. Moran, Jr.
President, Hudson Pacific Properties, Inc.		Managing Member, Farallon Capital Management, L.L.C.	Co-founder and Co-owner, FJM Investments LLC
Theodore R. Antenucci		Jonathan M. Glaser	Barry A. Porter
President and Chief Investment Officer, Prologis and President and Chief Executive Officer, Catellus Development Corporation		Managing Member, JMG Capital Management LLC	Managing General Partner, Clarity Partners L.P.
EXECUTIVE AND SENIOR MANAGEMENT
Victor J. Coleman		Howard S. Stern	Mark T. Lammas
Chief Executive Officer		President	Chief Financial Officer
Christopher Barton		Dale Shimoda	Alexander Vouvalides
EVP, Operations and Development		EVP, Finance	VP, Asset Management
Harout Diramerian		Kay Tidwell	Elva Hernandez
Chief Accounting Officer		EVP, Legal Affairs	Operational Controller
INVESTOR RELATIONS
	Addo Communications Andrew Blazier (310) 829-5400 Email Contact: andrewb@addocommunications.com Please visit our corporate Web site at: www.hudsonpacificproperties.com

3

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

CORPORATE DATA

(unaudited, $ in thousands, except per share data)

Hudson Pacific Properties, Inc. (NYSE: HPP) (also referred to herein as the “Company,” “we,” “us,” or “our”) is a full-service, vertically integrated real estate company focused on owning, operating and acquiring high-quality office properties in select growth markets primarily in Northern and Southern California. Our investment strategy is focused on high barrier-to-entry, in-fill locations with favorable, long-term supply demand characteristics. These markets include Los Angeles, Orange County, San Diego, San Francisco, Silicon Valley and the East Bay, which we refer to as our target markets.

This Supplemental Operating and Financial Data supplements the information provided in our reports filed with the Securities and Exchange Commission. We maintain a Web site at www.hudsonpacificproperties.com.

Number of office properties owned	11
Office properties square feet (in thousands)	3,134
Office properties leased rate as of December 31, 2010	88.0		%
Office properties occupied rate as of December 31, 2010(1)	87.7		%
Number of media & entertainment properties owned	2
Media & entertainment square feet (in thousands)	857
Media & entertainment occupied rate as of December 31, 2010(2)	72.6		%
Number of land assets owned	4
Land assets square feet (in thousands)(3)	1,447
Market capitalization (in thousands):
Total debt(4)	$	341,417
Series A Preferred Units	12,475
Redeemable non-controlling interest in consolidated real estate entity	40,328
Series B Preferred Stock	87,500
Common equity capitalization(5)	373,737
Total market capitalization	$	855,457
Debt/total market capitalization	39.9		%
Series A preferred units & debt/total market capitalization	41.4		%
Common stock data (NYSE:HPP):
Range of closing prices(6)	$ 14.69-16.52
Closing price at quarter end	$	15.05
Weighted average fully diluted shares outstanding (in thousands)(7)	24,833
Shares of common stock outstanding on December 31, 2010 (in thousands)(8)	22,437

______________________________

(1)     Represents percent leased less signed leases not yet commenced.

(2)     Percent occupied for media and entertainment properties is the average percent occupied for the 12 months ended December 31, 2010.

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

(4)     Total debt excludes non-cash loan premium/discount. Total debt includes entire $106.0 million project level indebtedness relating to the Rincon Center project. We currently own a 51% interest in this project.

(5)     Common equity capitalization represents the weighted average shares of common stock and OP units outstanding multiplied by the closing price of our stock at the end of the period.

(6)     For the quarter ended December 31, 2010.

(7)     For the quarter ended December 31, 2010. Diluted shares represent ownership in our company through shares of common stock, OP Units and other convertible instruments.

(8)     This amount represents undiluted shares (including unvested restricted shares), and does not include OP units and other convertible equity instruments.

4

CONSOLIDATED FINANCIAL RESULTS

5

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

Consolidated Balance Sheets

(Unaudited, in thousands, except share data)

	December 31, 2010			December 31, 2009
ASSET
Total investment in real estate, net	$	839,032		$	412,478
Cash and cash equivalents	48,875			3,694
Restricted cash	4,121			4,231
Accounts receivable, net	4,478			1,273
Straight-line rent receivables	6,688			2,935
Deferred leasing costs and lease intangibles, net	85,286			19,219
Deferred financing costs, net	3,211			668
Goodwill	8,754			—
Prepaid expenses and other assets	4,130			3,736
TOTAL ASSETS	$	1,004,575		$	448,234
LIABILITIES AND EQUITY
Notes payable	$	342,060		$	189,518
Accounts payable and accrued liabilities	11,506			6,026
Below-market leases	20,994			11,636
Security deposits	5,052			2,939
Prepaid rent	10,559			11,102
Interest rate contracts	71			425
TOTAL LIABILITIES	390,242			221,646
6.25% Series A cumulative redeemable preferred units of the Operating Partnership	12,475			—
Redeemable non-controlling interest in consolidated real estate entity	40,328			—
EQUITY
Members' equity	—			223,240
Hudson Pacific Properties, Inc. stockholder's equity:
Series B cumulative redeemable preferred stock	87,500			—
Common Stock, $0.01 par value 490,000,000 authorized, 22,436,950 outstanding at December 31, 2010	224			—
Additional paid-in capital	411,598			—
Accumulated other comprehensive income	6			—
Accumulated deficit	(3,482		)	—
Total Hudson Pacific Properties, Inc. stockholders’ equity	495,846			223,240
Non-controlling interests:
Members in consolidated real estate entities	—			3,348
Unitholders in the Operating Partnership	65,684			—
	65,684			3,348
TOTAL EQUITY	561,530			226,588
TOTAL LIABILITIES AND EQUITY	$	1,004,575		$	448,234

6

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

Consolidated Statements of Operations

(Unaudited, in thousands, except share and per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2010			2009			2010			2009
Revenues
Office
Rental	$	9,461		$	2,697		$	22,247		$	11,046
Tenant recoveries	2,108			589			4,023			2,024
Other	108			100			233			252
Total office revenues	11,677			3,386			26,503			13,322
Media & entertainment
Rental	5,478			4,617			20,931			19,916
Tenant recoveries	392			567			1,571			1,792
Other property-related revenue	3,401			2,025			11,397			9,427
Other	142			7			238			64
Total media & entertainment revenues	9,413			7,216			34,137			31,199
Total revenues	21,090			10,602			60,640			44,521
Operating expenses
Office operating expenses	4,562			1,914			10,212			6,242
Media & entertainment operating expenses	4,621			5,094			19,815			19,545
General and administrative	2,114			—			4,493			—
Depreciation and amortization	5,927			2,574			15,912			10,908
Total operating expenses	17,224			9,582			50,432			36,695
Income from operations	$	3,866		$	1,020		$	10,208		$	7,826
Other expense (income)
Interest expense	2,635			2,090			8,831			8,792
Interest income	(22		)	(10		)	(59		)	(19		)
Unrealized (gain) on interest rate contracts	—			(192		)	(347		)	(400		)
Acquisition-related expenses	1,584			—			4,273			—
Other expenses	200			—			192			97
	$	4,397		$	1,888		$	12,890		$	8,470
Net loss	$	(531	)	$	(868	)	$	(2,682	)	$	(644	)
Less: Net income attributable to preferred non-controlling partnership interest	(622		)	—			(817		)	—
Less: Net income attributable to restricted shares	(25		)	—			(50		)	—
Less: Net income attributable to non-controlling members in consolidated real estate entities	(148		)	33			(119		)	29
Add: Net loss attributable to unitholders in the Operating Partnership	141			—			418			—
Net loss attributable to Hudson Pacific Properties, Inc. shareholders' / controlling member's equity	$	(1,185	)	$	(835	)	$	(3,250	)	$	(615	)
Net loss attributable to shareholders' per share - basic and diluted	$	(0.05	)	$	—		$	—		$	—
Weighted average shares of common stock outstanding - basic and diluted	21,946,508			—			—			—
Dividends declared per common share	$	0.095		$	—		$	—		$	—

7

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended
	December 31, 2010
Funds From Operation (FFO) (1)
Net loss	$	(531	)
Adjustments:
Depreciation and amortization of real estate assets	5,927
Less: Net income attributable to non-controlling members in consolidated real estate entities	(148		)
Less: Net income attributable to preferred non-controlling partnership interest	(622		)
FFO	$	4,626
Specified items impacting FFO:
Acquisition-related expenses	1,584
One-time property tax expense reduction	(1,089		)
FFO (after specified items)	5,121
Weighted average common shares/units outstanding - diluted	24,833
FFO (after specified items) per common share/unit - diluted	0.21
Adjusted Funds From Operations (AFFO) (1)
FFO	4,626
Adjustments:
Straight-line rent	(964		)
Amortization of prepaid rent (2)	251
Amortization of above market and below market leases, net	123
Amortization of below market ground lease	47
Amortization of lease buy-out costs	31
Amortization of deferred financing costs and loan premium/discount, net	314
Re-occurring capital expenditures, tenant improvements and lease commissions	(167		)
Non-cash compensation expense	389
AFFO	$	4,650
AFFO per common share/unit - diluted	0.19
Dividends per share declared	0.095
AFFO payout ratio	50.7		%

______________________________

(1)     See page 18 for Management Statements on Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

(2)     Represents the difference between rental revenue recognize in accordance with accounting principles generally accepted in the United States (GAAP) based on the amortization of the prepaid rent liability relating to the KTLA lease at our Sunset Bronson property compared to scheduled cash rents received in connection with such prepayment.

8

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

DEBT SUMMARY

(In thousands)

The following table sets forth information with respect to our outstanding indebtedness as of December 31, 2010.

					Annual			Balance at
Debt	Outstanding		Interest Rate (1)		Debt Service		Maturity Date	Maturity
Mortgage loan secured by Sunset Bronson (2)	$	37,000	LIBOR+3.65%		$	1,651	4/30/2011	$	37,000
Mortgage loan secured by Rincon Center (3)	106,000		6.08	%	6,529		7/1/2011	106,000
Mortgage loan secured by First Financial	43,000		5.34	%	2,328		12/1/2011	43,000
Mortgage loan secured by Tierrasanta	14,300		5.62	%	815		12/1/2011	14,300
Mortgage loan secured by 10950 Washington	30,000		5.94	%	1,807		2/1/2012	30,000
Secured Revolving Credit Facility (4)	111,117		LIBOR+3.25% to 4.00%		5,351		6/29/2013	111,117
Subtotal	$	341,417
Unamortized loan discount, net (5)	643
Total	$	342,060

______________________________

(1)     Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed.

(2)     The indebtedness encumbering the Sunset Bronson property is floating rate indebtedness. We entered into a secured interest rate contract with respect to $37.0 notional principal amount of indebtedness that went effective upon the closing of the IPO and related formation transaction on June 29, 2010 and swapped one-month LIBOR to a fixed rate of 0.75%. On February 11, 2011, we closed a five-year term loan totaling $92.0 million secured by the Company's Sunset Gower and Sunset Bronson media and entertainment campuses. The loan bears interest at a rate equal to one-month LIBOR plus 350 basis points. $37.0 million of the loan is currently subject to the interest rate swap described in footnote (1) above. We are required to hedge at least half of the $92.0 million term loan no later than March 28, 2011.

(3)     Outstanding balance reflects full project level indebtedness on Rincon Center, without pro rata adjustment for our 51% share of the Rincon Center joint venture.

(4)     We entered into a $200.0 million secured revolving credit facility with a group of lenders for which an affiliate of Barclays Capital Inc. acts as administrative agent and joint lead arranger and affiliates of Merrill Lynch, Pierce, Fenner & Smith Incorporated act as syndication agent and joint lead arranger. The facility bears interest at a rate per annum equal to LIBOR plus 325 basis points to 400 basis points, depending on our leverage ratio, provided that LIBOR is subject to a floor of 1.50%. The secured revolving credit facility contains an accordion feature that allows us to increase the availability by $50.0 million, to $250.0 million, under specified circumstances.

(5)     Represents non-cash mark-to-market adjustment on debt associated with the First Financial, Tierrasanta, Rincon and 10950 Washington loans.

9

PORTFOLIO DATA

10

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

OFFICE PORTFOLIO SUMMARY, OCCUPANCY, AND IN-PLACE RENTS

County	Number of Properties	Square Feet (1)	Percent of Total		Percent Occupied (2)		Annualized Base Rent (3)		Annualized Base Rent Per Leased Square Foot (4)
San Francisco (5)	4	2,027,929	64.7	%	84.1	%	$	37,715,931	$	22.11
Los Angeles	5	667,738	21.3	%	94.0	%	20,007,800		31.89
Orange County	1	333,922	10.7	%	93.7	%	7,794,151		24.90
San Diego	1	104,234	3.3	%	96.8	%	1,580,915		15.67
	11	3,133,823	100.0	%	87.7	%	$	67,098,797	$	24.43

______________________________

(1)     Square footage for office properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to remeasurement or releasing.

(2)     Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2010, divided by (ii) total square feet, expressed as a percentage.

(3)     Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2010, by (ii) 12.

(4)     Annualized base rent per leased square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under lease as of December 31, 2010.

(5)     San Francisco amounts include full Rincon Center project without pro rata adjustment for our 51% share of the Rincon Center joint venture.

11

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

MEDIA & ENTERTAINMENT PORTFOLIO SUMMARY, OCCUPANCY, AND IN-PLACE RENTS

Property	Square Feet (1)	Percent of Total		Percent Occupied (2)		Annual Base Rent (3)		Annual Base Rent Per Leased Square Foot (4)
Sunset Gower	543,709	63.4	%	70.9	%	$	11,670,642	$	30.27
Sunset Bronson	313,723	36.6	%	75.5	%	9,520,517		40.18
	857,432	100.0	%	72.6	%	$	21,191,159	$	34.04

______________________________

(1)     Square footage for media and entertainment properties has been determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association, or BOMA, rentable area. Square footage may change over time due to remeasurement or releasing.

(2)     Percent occupied for media and entertainment properties is the average percent occupied for the 12 months ended December 31, 2010.

(3)     Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended December 31, 2010, excluding tenant reimbursements.

(4)     Annual base rent per leased square foot for the media and entertainment properties is calculated as (i) annual base rent divided by (ii) square footage under lease as of December 31, 2010.

12

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

TEN LARGEST OFFICE TENANTS ⁽¹⁾ 

Tenant	Number of Leases	Number of Properties	Lease Expiration	Total Leased Square Feet	Percent of Rentable Square Feet		Annualized Base Rent (2)		Percent of Annualized Base Rent
Bank of America	1	1	Various (3)	835,649	26.7	%	$	9,950,860	14.8	%
AIG	1	1	Various (4)	170,089	5.4	%	6,809,675		10.1	%
AT&T	1	1	8/31/2013	155,964	5.0	%	5,850,333		8.7	%
Technicolor Creative Services USA, Inc.	1	1	5/31/2020	114,958	3.7	%	4,103,173		6.1	%
GSA - U.S. Corps of Engineers	1	1	2/19/2017	89,995	2.9	%	3,150,982		4.7	%
Saatchi & Saatchi North America, Inc.	1	1	12/31/2019	113,000	3.6	%	3,069,070		4.6	%
Kondaur Capital Corp.	1	1	3/31/2013	125,208	4.0	%	3,004,992		4.5	%
NFL Enterprises	1	1	3/31/2015	95,570	3.0	%	2,808,595		4.2	%
State of California	1	1	7/31/2012	35,452	1.1	%	1,659,606		2.5	%
Pepperdine University	1	1	1/31/2019	35,351	1.1	%	1,367,659		2.0	%
Total	10	10		1,771,236	56.5	%	$	41,774,945	62.2	%

______________________________

(1)     Top Ten Largest Office Tenants is determined by Annualized Base Rental Income as of December 31, 2010.

(2)     Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2010, by (ii) 12.

(3)     Bank of America lease expiration by square footage: (1) 28,574 sf at 12/31/2011; (2) 25,474 sf at 12/31/2012; (3) 236,522 sf at 12/31/2013; (4) 331,197 sf at 12/31/2015; and (5) 213,882 sf at 12/31/2017.

(4)     AIG lease expiration by square footage: (1) 3,332 sf at 5/31/2011; (2) 166,757 sf at 7/31/2017.

13

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

OFFICE PORTFOLIO LEASING ACTIVITY

Total Gross Leasing Activity
Rentable square feet	23,344
Number of leases	7
Gross New Leasing Activity
Rentable square feet	15,135
New cash rate	$	28.90
Number of leases	3
Gross Renewal Leasing Activity
Rentable square feet	8,209
Renewal cash rate	$	25.74
Number of leases	4
Net Absorption
Leased rentable square feet	15,135
Cash Rent Growth (1)
Expiring Rate	$	30.61
New/Renewal Rate	$	25.74
Change	(15.9		)%
Straight-Line Rent Growth (2)
Expiring Rate	$	28.46
New/Renewal Rate	$	24.85
Change	(12.7		)%
Weighted Average Lease Terms
New (in months)	60
Renewal (in months)	13

Tenant Improvements and Leasing Commissions (3)	Total Lease Transaction Costs Per Square Foot	Annual Lease Transaction Costs Per Square Foot
New leases	$32.80	$6.51
Renewal leases	$0.77	$0.69
Blended	$21.54	$5.89

______________________________

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

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

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

14

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

OFFICE LEASE EXPIRATIONS - ANNUAL

Year of Lease Expiration	Square Footage of Expiring Leases	Percent of Office Portfolio Square Feet		Annualized Base Rent (1)		Percentage of Office Portfolio Annualized Base Rent		Annualized Base Rent Per Leased Square Foot (2)		Annualized Base Rent Per Lease Square Foot at Expiration (3)
Available	377,437	12.0	%	$	—			$	—	$	—
2010 (4)	3,509	0.1	%	94,743		0.1	%	27.00		27.00
2011	196,157	6.3	%	4,947,674		7.3	%	25.22		25.28
2012	149,323	4.8	%	4,757,639		7.1	%	31.86		33.05
2013	710,262	22.7	%	17,068,998		25.3	%	24.03		25.12
2014	107,403	3.4	%	2,872,665		4.3	%	26.75		29.98
2015	470,100	15.0	%	7,535,645		11.2	%	16.03		18.37
2016	105,870	3.4	%	2,960,556		4.4	%	27.96		31.94
2017	578,546	18.5	%	14,821,434		22.0	%	25.62		28.45
2018	27,613	0.9	%	562,686		0.8	%	20.38		26.58
2019	215,745	6.9	%	6,257,044		9.3	%	29.00		33.83
Thereafter	170,785	5.4	%	5,219,711		7.7	%	30.56		45.82
Building management use	11,785	0.4	%	—		—	%	—		—
Signed leases not commenced	9,288	0.3	%	259,995		0.4	%	27.99		33.45
Total/Weighted Average	3,133,823	100.0	%	$	67,358,790	100.0 %		$	24.44	$	24.16

______________________________

(1)     Rent data for our office properties is presented on an annualized basis without regard to cancellation options. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2010, by (ii) 12.

(2)     Annualized base rent per leased square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under lease as of December 31, 2010.

(3)     Annualized base rent per leased square foot at expiration for the office properties is calculated as (i) annualized base rent at expiration divided by (ii) square footage under lease as of December 31, 2010.

(4)     2010 expiration reflects expirations at December 31, 2010.

15

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

QUARTERLY OFFICE LEASE EXPIRATIONS - NEXT FOUR QUARTERS

County		Q1 2011		Q2 2011		Q3 2011		Q4 2011
San Francisco	Expiring SF	2,103		44,925		13,653		28,574
	Rent per SF (1)	$	25.90	$	30.55	$	34.10	$	12.00
Los Angeles	Expiring SF	7,242		7,656		10,921		6,474
	Rent per SF (1)	$	36.25	$	34.46	$	32.83	$	28.61
Orange	Expiring SF	4,285		5,651		33,482		5,173
	Rent per SF (1)	$	22.65	$	26.77	$	27.64	$	24.81
San Diego	Expiring SF	11,580		8,305		—		6,133
	Rent per SF (1)	$	12.64	$	15.28	$	—	$	10.88

______________________________

(1)     Rent data for our office properties is presented on an annualized basis without regard to cancellation options. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) for the month ended December 31, 2010, by (ii) 12.

16

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

OFFICE PORTFOLIO DIVERSIFICATION

	Total	Annualized Rent as
Industry	Square Feet (1)	of Percent of Total
Business Services	65,004	2.8	%
Educational	96,713	4.0	%
Financial Services	1,085,432	25.1	%
Insurance	214,810	11.8	%
Legal	145,566	5.8	%
Media & Entertainment	331,631	15.6	%
Other	72,882	2.2	%
Real Estate	68,232	3.2	%
Retail	176,829	5.5	%
Technology	219,029	10.7	%
Advertising	115,735	4.7	%
Government	125,447	7.2	%
Healthcare	29,788	1.4	%
Total	2,747,098	100.0	%

______________________________

(1)     Does not include signed leases not commenced.

17

Hudson Pacific Properties, Inc.

Fourth Quarter 2010 Supplemental Operating and Financial Data

DEFINITIONS

Funds From Operations (FFO): We calculate funds from operations before non-controlling interest (FFO) in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO represents net income(loss), computed in accordance with accounting principles generally accepted in the United States of America (GAAP), excluding gains (or losses) from sales of depreciable operating property, real estate depreciation and amortization (excluding amortization of above (below) market rents for acquisition properties and amortization of deferred financing costs and debt discounts) and after adjustments for unconsolidated partnerships and joint ventures. We use FFO as a supplemental performance measure because, in excluding real estate depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating costs.

We also believe that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that results from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. Other equity REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to such other REITs' FFO. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance. FFO should not be used as a measure of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. FFO should not be used as a supplement to or substitute for cash flow from operating activities computed in accordance with GAAP.

Adjusted Funds From Operations (AFFO): Adjusted Funds From Operations (AFFO) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to FFO the non-cash compensation expense, and amortization of deferred financing costs and loan premium/discount, subtracting recurring capital expenditures, tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of straight-line rents, amortization of lease buy-out costs, and amortization of above/below market lease intangible assets and liabilities and amortization of deferred financing costs and debt discounts/premium. We also add to FFO the difference between rental revenue recognize in accordance with accounting principles generally accepted in the United States (GAAP) based on the amortization of the prepaid rent liability relating to the KTLA lease at our Sunset Bronson property compared to scheduled cash rents received in connection with such prepayment. AFFO is not intended to represent cash flow for the period, and it only provides an additional perspective on our ability to fund cash needs and make distributions to shareholders by adjusting the effect of the non-cash items included in FFO, as well as recurring capital expenditures and leasing costs. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

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