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): May 7, 2012

_________________________________

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))

Section 2 — Financial Information

Item 2.02 Results of Operations and Financial Condition.

On May 7, 2012, Hudson Pacific Properties, Inc. (also referred to herein as the “Company,” “we,” “us,” or “our”) issued a press release regarding our financial results for our quarter ended March 31, 2012. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on May 7, 2012, we made available on our Web site (www.hudsonpacificproperties.com) certain supplemental information concerning our financial results and operations for the first quarter. 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 financial results for our quarter ended March 31, 2012 and made available on our Web site certain supplemental information relating to our financial results for the quarter ended March 31, 2012.

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 May 7, 2012 regarding the Company’s financial results for the quarter ended March 31, 2012.
99.2**	Supplemental Operating and Financial Data for the first quarter 2012.

** Furnished herewith.

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: May 7, 2012	By:	/s/ Mark T. Lammas
		Mark T. Lammas
		Chief Financial Officer

EXHBIT INDEX

Exhibit No.	Description
99.1**	Press release dated May 7, 2012 regarding the Company’s financial results for the quarter ended March 31, 2012.
99.2**	Supplemental Operating and Financial Data for the first quarter 2012.

** Furnished herewith.

EX-99.1

Hudson Pacific Properties, Inc. Announces First Quarter 2012 Financial Results

Los Angeles, CA, May 7, 2012 - Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today announced financial results for the first quarter ended March 31, 2012.

Financial Results

Funds From Operations (FFO) (after specified items) for the three months ended March 31, 2012 totaled $9.4 million, or $0.26 per diluted share, compared to FFO (after specified items) of $6.6 million, or $0.26 per share, a year ago. The specified items for the first quarter of 2012 were comprised of expenses associated with the acquisition of operating properties of $0.1 million, or $0.00 per diluted share. The specified items for the first quarter of 2011 were comprised of a one-time early lease termination payment from a tenant at our City Plaza project of $2.0 million (after non-cash write-offs), or $0.08 per diluted share. FFO including the specified items totaled $9.4 million, or $0.26 per diluted share, for the three months ended March 31, 2012, compared to $8.6 million, or $0.34 per share, a year ago.

The Company reported a net loss attributable to common shareholders of $2.6 million, or $(0.08) per diluted share, for the three months ended March 31, 2012, compared to net loss attributable to common shareholders of 2.5 million, or $(0.11) per diluted share, for the three months ended March 31, 2011.

"We are off to a solid start in 2012," said Mr. Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. "During the first quarter, we closed two 10-year term loans with PNC Bank and Cantor Commercial Real Estate Lending totaling $43.0 million and $30.0 million, respectively. With attractive rates and longer maturities, these new term loans enhance our financial flexibility and complement our broader financing objectives, including the management of our debt maturities. In addition to these term loans, we also raised $56.1 million of proceeds from the successful public offering of our 8.375% Series B Cumulative Redeemable Preferred Stock. Strong institutional confidence in our operating platform and the strength of our capital structure drove demand for this offering, allowing us to readily achieve our size and pricing objectives."

"Leasing activity in our markets remains strong. In the first quarter, we completed new and renewal leases totaling 88,332 square feet taking the leased rate of our office portfolio to 91.2%. I am particularly pleased with the new 44,260 square foot lease for our entire 604 Arizona project in Santa Monica. This property generated significant tenant interest due to the limited supply of creative office space throughout west Los Angeles, resulting in the execution of a new lease with little downtime and at terms that exceed our original underwriting expectations.”

First Quarter Highlights

• FFO (after specified items) of $9.4 million, or $0.26 per diluted share, compared to $6.6 million, or $0.26 per share, a year ago;

• Completed new and renewal leases totaling 88,332 square feet, including a new 44,260 square foot, 10-year lease to Real Office Centers at 604 Arizona in Santa Monica, expected to commence early in the fourth quarter of this year upon completion of tenant improvement;

• Office portfolio leased rate of 91.2% at March 31, 2012, up from 91.0% leased at December 31, 2011;

• Closed a 10-year $43.0 million term loan with PNC Bank, National Association secured by the Company's First Financial Plaza property;

• Closed a 10-year $30.0 million term loan with Cantor Commercial Real Estate Lending secured by the Company's 10950 Washington property;

• Raised $56.1 million (before transaction costs) from the sale of 2.3 million shares of 8.375% Series B Cumulative Preferred Stock;

• Declared and paid quarterly dividend of $0.125 per common share; and

• Declared and paid dividend of $0.52344 per share on 8.375% Series B Cumulative Preferred Stock.

Combined Operating Results For The Three Months Ended March 31, 2012

Total revenue during the quarter increased 9.8% to $38.2 million from $34.8 million for the same quarter a year ago. The increase in total revenue was primarily attributable to a $4.8 million increase in rental revenue to $27.8 million and a $0.3 million increase in tenant recoveries to $5.6 million, largely resulting from the acquisition of office properties during the third and fourth quarters of 2011.

The increase in rental revenue and tenant recoveries was partially offset by a $0.6 million decrease in other property-related revenue to $2.6 million from slower production activity at the Company’s media and entertainment properties compared to the same quarter a year ago, and a $1.1 million decrease in parking and other revenue to $2.2 million, reflecting the one-time early lease termination payment from a tenant at our City Plaza property of $2.0 million (after non-cash write-offs) in the first quarter of 2011, with no comparable activity in the current quarter. If the early lease termination payment is disregarded, the combined parking and other revenue would have increased by $0.9 million from the same quarter a year ago as a result of the acquisition of office properties during the third and fourth quarters of 2011.

Total operating expenses increased 9.4% to $32.8 million from $30.0 million for the same quarter a year ago. The increase in total operating expenses was primarily the result of a $1.1 million increase in office operating expenses to $11.4 million and a $0.8 million increase in depreciation and amortization to $12.1 million, in both cases primarily attributable to office properties acquired during the third and fourth quarters of 2011, and a $1.4 million increase in general and administrative expenses to $4.5 million. These increases were partially offset by a $0.4 million decrease in media and entertainment operating expenses to $4.8 million resulting from slower production activity at the Company’s media and entertainment properties compared to the same quarter a year ago.

As a result, income from operations increased 12.7% to $5.5 million for the first quarter of 2012, compared to income from operations of $4.8 million for the same quarter a year ago.

Interest expense during the first quarter increased 5.4% to $4.9 million, compared to interest expense of $4.6 million for the same quarter a year ago. At March 31, 2012, the Company had $361.1 million of notes payable compared to $399.9 million of notes payable at December 31, 2011 and $332.2 million of notes payable at March 31, 2011.

Segment Operating Results For The Three Months Ended March 31, 2012

Office Properties

Total revenue at the Company’s office properties increased 16.5% to $29.9 million from $25.6 million for the same quarter a year ago. The increase was primarily the result of a $4.9 million increase in rental revenue to $22.4 million and a $0.4 million increase in tenant recoveries to $5.4 million, largely resulting from the acquisition of office properties during the third and fourth quarters of 2011. These increases were partially offset by the $1.1 million decrease in parking and other revenue to $2.2 million, reflecting the one-time early lease termination payment in the first quarter of 2011, with no comparable activity in the current quarter, all as described earlier.

Office property operating expenses increased 10.5% to $11.4 million from $10.3 million for the same quarter a year ago. The increase was primarily the result of office properties acquired during the third and fourth quarters of 2011.

At March 31, 2012, the Company’s office portfolio was 91.2% leased, up from 89.5% leased a year ago. During the quarter, the Company executed 14 new and renewal leases totaling 88,332 square feet, including a 44,260 square foot, 10-year lease to Real Office Centers, a provider of unique, social conscious office space, for the Company's entire 604 Arizona property located in Santa Monica.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties decreased 8.8% to $8.4 million from $9.2 million for the same quarter a year ago. The decrease was primarily the result of a $0.6 million decrease in other property-

related revenue to $2.6 million, compared to $3.3 million in the same period a year ago, resulting from slower production activity.

Total media and entertainment expenses decreased 7.9% to $4.8 million from $5.2 million for the same quarter a year ago, primarily as a result of lower operating expenses associated with slower production activity.

As of March 31, 2012, the trailing 12-month occupancy for the Company’s media and entertainment portfolio decreased to 69.2% from 73.8% for the trailing 12-month period ended March 31, 2011, but trailing 3-month occupancy significantly improved over the fourth quarter of 2011, with occupancy reaching 69.7% for quarter ended March 31, 2012, up from 65.8% for the quarter ended December 31, 2011.

Balance Sheet

At March 31, 2012, the Company had total assets of $1.2 billion, including unrestricted cash and cash equivalents of $21.9 million. At March 31, 2012, the Company had total capacity of approximately $161.8 million on its $200.0 million secured credit facility, of which $10.0 million had been drawn.

Financings and Offerings

On January 19, 2012, the Company closed a 10-year term loan totaling $43.0 million with PNC Bank, National Association, secured by the Company's First Financial Plaza property. The loan bears interest at a fixed annual rate of 4.58% and will mature on February 1, 2022. Proceeds were used to repay indebtedness under the Company's secured revolving credit facility.

On January 23, 2012, the Company completed the public offering of 2.3 million shares of its 8.375% Series B Cumulative Preferred Stock (including 300,000 shares of Series B Preferred Stock issued and sold pursuant to the exercise of the underwriters’ over-allotment option in full) with the liquidation preference of $25.00 per share. Proceeds from the offering, after deducting underwriting discounts, were approximately $56.1 million (before other transaction costs). Proceeds were used to repay indebtedness outstanding under its secured revolving credit facility.

On February 24, 2012, the Company closed a 10-year term loan totaling $30.0 million with Cantor Commercial Real Estate Lending, L.P., secured by its 10950 Washington property. The loan bears interest at a fixed annual rate of 5.316% and will mature on March 11, 2022. Proceeds of $25.0 million from the loan were used to repay indebtedness under the Company's secured revolving credit facility.

Outperformance Program

On January 1, 2012, the Compensation Committee of the Company's Board of Directors adopted the Hudson Pacific Properties, Inc. 2012 Outperformance Program, or the 2012 Outperformance Program. A summary of the 2012 Outperformance program is included in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, expected to filed with the Securities and Exchange Commission on or before May 10, 2012.

Dividend

The Company’s Board of Directors declared a dividend on its common stock of $0.125 per share and on its 8.375% Series B Cumulative Preferred Stock of $0.52344 per share for the first quarter of 2012. Both dividends were paid on April 2, 2012 to stockholders of record on March 20, 2012.

2012 Outlook

The Company is reaffirming full-year 2012 FFO guidance in the range of $1.00 to $1.04 per diluted share. This guidance includes all completed acquisitions, the $43.0 million term loan secured by First Financial Plaza, the $30.0 million term loan secured by 10950 Washington, and the issuance of 2.3 million shares of Series B Preferred Stock, all of which are described above. The Company estimates the impact of the dividends on the new Series B shares will be

$0.13 per common share in 2012. However, as is always the case, the Company's guidance does not anticipate any impact to FFO from unannounced or speculative acquisitions. The full-year 2012 FFO estimates reflect management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this release, but otherwise exclude any impact from future acquisitions, dispositions, debt financings or repayments, recapitalizations, capital market activity, or similar matters.

Supplemental Information

Supplemental financial information regarding the Company’s first quarter 2012 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 hold a conference call on Monday, May 7, 2012 at 1:30 p.m. PDT / 4:30 p.m. EDT to discuss the first quarter results. To participate in the event by telephone, please dial (877) 941-8416 five to 10 minutes prior to the start time (to allow time for registration) and use conference ID 4531416. International callers should dial (480) 629-9808 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 atwww.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 Web site. For those unable to participate during the live broadcast, a replay will be available beginning May 7, 2012, at 4:30 p.m. PDT / 7:30 p.m. EDT, through May 21, 2012, at 8:59 p.m. PDT / 11:59 p.m. EDT. To access the replay, dial (877) 870-5176 and use passcode 4531416. International callers should dial (858) 384-5517 and enter the same conference ID number.

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. The Company's portfolio consists of approximately 5.4 million square feet (including undeveloped land). 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. Hudson Pacific Properties is a component of the Russell 2000® and the Russell 3000® indices. For additional information, please 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 Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission on March 14, 2012, 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.

Lasse Glassen

(310) 829-5400

lasseg@addocommunications.com

(FINANCIAL TABLES FOLLOW)

Hudson Pacific Properties, Inc. Consolidated Balance Sheets (Unaudited, in thousands, except share data)
	March 31, 2012			December 31, 2011
ASSETS
REAL ESTATE ASSETS
Land	$	368,608		$	368,608
Building and improvements	601,645			601,812
Tenant improvements	69,716			69,021
Furniture and fixtures	11,546			11,536
Property under development	9,939			9,527
Total real estate held for investment	1,061,454			1,060,504
Accumulated depreciation and amortization	(60,420		)	(53,329		)
Investment in real estate, net	1,001,034			1,007,175
Cash and cash equivalents	21,858			13,705
Restricted cash	10,175			9,521
Accounts receivable, net	8,069			8,963
Straight-line rent receivables	12,364			10,801
Deferred leasing costs and lease intangibles, net	78,940			84,131
Deferred finance costs, net	5,293			5,079
Interest rate contracts	437			164
Goodwill	8,754			8,754
Prepaid expenses and other assets	13,576			4,498
TOTAL ASSETS	$	1,160,500		$	1,152,791
LIABILITIES AND EQUITY
Notes payable	$	361,051		$	399,871
Accounts payable and accrued liabilities	14,448			12,469
Below-market leases	21,503			22,861
Security deposits	6,136			5,651
Prepaid rent	6,829			10,795
TOTAL LIABILITIES	409,967			451,647
6.25% series A cumulative redeemable preferred units of the Operating Partnership	12,475			12,475
EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375% series B cumulative redeemable preferred stock, $25.00 liquidation preference, 5,800,000 shares and 3,500,000 shares outstanding at March 31, 2012 and December 31, 2011, respectively	145,000			87,500
Common Stock, $0.01 par value 490,000,000 authorized, 33,998,498 shares and 33,840,854 shares outstanding at March 31, 2012 and December 31, 2011, respectively	340			338
Additional paid-in capital	550,873			552,043
Accumulated other comprehensive (deficit) income	(968		)	(883		)
Accumulated deficit	(16,245		)	(13,685		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	679,000			625,313
Non-controlling common units in the Operating Partnership	59,058			63,356
TOTAL EQUITY	738,058			688,669
TOTAL LIABILITIES AND EQUITY	$	1,160,500		$	1,152,791

Hudson Pacific Properties, Inc.

Combined Statements of Operations

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

	Three Months Ended
	March 31,
	2012			2011
Revenues
Office
Rental	$	22,380		$	17,514
Tenant recoveries	5,374			4,963
Parking and other	2,114			3,155
Total office revenues	29,868			25,632
Media & entertainment
Rental	5,451			5,480
Tenant recoveries	248			343
Other property-related revenue	2,624			3,271
Other	40			78
Total media & entertainment revenues	8,363			9,172
Total revenues	38,231			34,804
Operating expenses
Office operating expenses	11,356			10,274
Media & entertainment operating expenses	4,770			5,179
General and administrative	4,514			3,146
Depreciation and amortization	12,132			11,361
Total operating expenses	32,772			29,960
Income from operations	5,459			4,844
Other expense (income)
Interest expense	4,891			4,642
Interest income	(5		)	(8		)
Acquisition-related expenses	61			—
Other expenses (income)	44			117
	4,991			4,751
Net income	$	468		$	93
Less: Net income attributable to preferred stock and units	(3,231		)	(2,027		)
Less: Net income attributable to restricted shares	(78		)	(62		)
Less: Net income attributable to non-controlling interest in consolidated real estate entities	—			(813		)
Add: Net loss attributable to common units in the Operating Partnership	203			299
Net loss attributable to Hudson Pacific Properties, Inc. shareholders	$	(2,638	)	$	(2,510	)
Net loss attributable to shareholders’ per share - basic and diluted	$	(0.08	)	$	(0.11	)
Weighted average shares of common stock outstanding - basic and diluted	33,320,450			21,949,118
Dividends declared per common share	$	0.125		$	0.125

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)

	Three Months Ended
	March 31,
	2012			2011
Reconciliation of net loss to Funds From Operations (FFO):
Net (loss) income	$	468		$	93
Adjustments:
Depreciation and amortization of real estate assets	12,132			11,361
Less: Net loss (income) attributable to non-controlling interest in consolidated real estate entities	—			(813		)
Less: Net income attributable to preferred stock and units	(3,231		)	(2,027		)
FFO to common shareholders and unit holders	$	9,369		$	8,614
Specified items impacting FFO:
Acquisition-related expenses	61			—
Master Halco termination revenue	—			(2,744		)
Master Halco non-cash write-off	—			716
FFO (after specified items) to common shareholders and unit holders	$	9,430		$	6,586
Weighted average common shares/units outstanding - diluted	36,454			25,060
FFO per common share/unit - diluted	0.26			0.34
FFO (after specified items) per common share/unit - diluted	0.26			0.26

EX-99.2

HUDSON PACIFIC PROPERTIES, INC.

FIRST QUARTER 2012

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 April 27, 2011. 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 April 27, 2011. In light of these risks and uncertainties, any forward-looking events described herein or in Hudson Pacific Properties, Inc.'s May 2012 conference call may not occur.

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

TABLE OF CONTENTS

	PAGE
COMPANY BACKGROUND AND CORPORATE DATA	3 - 4
CONSOLIDATED FINANCIAL RESULTS
Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Funds from Operations and Adjusted Funds from Operations	8
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.

First Quarter 2012 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		Theodore R. Antenucci	Jonathan M. Glaser
Chairman of the Board and Chief Executive Officer, Hudson Pacific Properties, Inc.		President and Chief Executive Officer, Catellus Development Corporation	Managing Member, JMG Capital Management LLC
Richard B. Fried		Mark D. Linehan	Robert M. Moran, Jr.
Managing Member, Farallon Capital Management, L.L.C.		President and Chief Executive Officer, Wynmark Company	Co-founder and Co-owner, FJM Investments LLC
Barry A. Porter		Patrick Whitesell	Howard S. Stern
Managing General Partner, Clarity Partners L.P.		Co-Chief Executive, WME Entertainment	President, Hudson Pacific Properties, Inc.
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	SVP, Acquisitions
Harout Diramerian		Kay Tidwell	Elva Hernandez
Chief Accounting Officer		EVP, General Counsel	Operational Controller
INVESTOR RELATIONS
	Addo Communications (310) 829-5400 Email Contact: lasseg@addocommunications.com Please visit our corporate Web site at: www.hudsonpacificproperties.com

3

Hudson Pacific Properties, Inc.

First Quarter 2012 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	15
Office properties square feet (in thousands)	3,583
Office properties leased rate as of March 31, 2012(1)	91.2		%
Office properties occupied rate as of March 31, 2012(1) (2)	89.2		%
Number of media & entertainment properties owned	2
Media & entertainment square feet (in thousands)	878
Media & entertainment occupied rate as of March 31, 2012(3)	69.2		%
Number of land assets owned	4
Land assets square feet (in thousands)(4)	1,447
Market capitalization (in thousands):
Total debt(5)	$	359,277
Series A Preferred Units	12,475
Series B Preferred Stock	145,000
Common equity capitalization(6)	551,542
Total market capitalization	$	1,068,294
Debt/total market capitalization	33.6		%
Series A preferred units & debt/total market capitalization	34.8		%
Common stock data (NYSE:HPP):
Range of closing prices(7)	$ 13.62-16.01
Closing price at quarter end	$	15.13
Weighted average fully diluted shares\units outstanding (in thousands)(8)	36,454
Shares of common stock\units outstanding on March 31, 2012 (in thousands)(9)	36,454

__________________________

(1) Office properties leased rate and occupied rate includes the approximately 50,000 square-foot vacant 275 Brannan property, which the Company is in the process of renovating in anticipation of re-tenanting. Excluding 275 Brannan, the office properties leased rate and occupied rate was 92.5% and 90.5%, respectively.

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

(3) Percent occupied for media and entertainment properties is the average percent occupied for the 12 months ended March 31, 2012.

(4) 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.

(5) Total debt excludes non-cash loan premium/discount.

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

(7) For the quarter ended March 31, 2012.

(8) For the quarter ended March 31, 2012. Diluted shares represent ownership in our company through shares of common stock, OP Units and other convertible instruments. Diluted shares do not include shares issuable upon exchange of our series A preferred units, which do not become exchangeable until June 29, 2013.

(9) This amount represents fully diluted common shares and OP units (including unvested restricted shares) at March 31, 2012, and does not include shares issuable upon exchange of our series A preferred units, which do not become exchangeable until June 29, 2013.

4

CONSOLIDATED FINANCIAL RESULTS

5

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

Consolidated Balance Sheets

(Unaudited, in thousands, except share data)

	March 31, 2012			December 31, 2010
ASSETS
Total investment in real estate, net	$	1,001,034		$	1,007,175
Cash and cash equivalents	21,858			13,705
Restricted cash	10,175			9,521
Accounts receivable, net	8,069			8,963
Straight-line rent receivables	12,364			10,801
Deferred leasing costs and lease intangibles, net	78,940			84,131
Deferred finance costs, net	5,293			5,079
Interest rate contracts	437			164
Goodwill	8,754			8,754
Prepaid expenses and other assets	13,576			4,498
TOTAL ASSETS	$	1,160,500		$	1,152,791
LIABILITIES AND EQUITY
Notes payable	$	361,051		$	399,871
Accounts payable and accrued liabilities	14,448			12,469
Below-market leases	21,503			22,861
Security deposits	6,136			5,651
Prepaid rent	6,829			10,795
TOTAL LIABILITIES	409,967			451,647
6.25% series A cumulative redeemable preferred units of the Operating Partnership	12,475			12,475
EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 10,000,000 authorized; 8.375% series B cumulative redeemable preferred stock, $25.00 liquidation preference, 5,800,000 shares and 3,500,000 shares outstanding at March 31, 2012 and December 31, 2011, respectively	145,000			87,500
Common Stock, $0.01 par value 490,000,000 authorized, 33,998,498 shares and 33,840,854 shares outstanding at March 31, 2012 and December 31, 2011, respectively	340			338
Additional paid-in capital	550,873			552,043
Accumulated other comprehensive (deficit) income	(968		)	(883		)
Accumulated deficit	(16,245		)	(13,685		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	679,000			625,313
Non-controlling common units in the Operating Partnership	59,058			63,356
TOTAL EQUITY	738,058			688,669
TOTAL LIABILITIES AND EQUITY	$	1,160,500		$	1,152,791

6

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

Consolidated Statements of Operations (Unaudited, in thousands, except share and per share data)
	Three Months Ended March 31,
	2012			2011
Revenues
Office
Rental	$	22,380		$	17,514
Tenant recoveries	5,374			4,963
Parking and other	2,114			3,155
Total office revenues	29,868			25,632
Media & entertainment
Rental	5,451			5,480
Tenant recoveries	248			343
Other property-related revenue	2,624			3,271
Other	40			78
Total media & entertainment revenues	8,363			9,172
Total revenues	38,231			34,804
Operating expenses
Office operating expenses	11,356			10,274
Media & entertainment operating expenses	4,770			5,179
General and administrative	4,514			3,146
Depreciation and amortization	12,132			11,361
Total operating expenses	32,772			29,960
Income from operations	5,459			4,844
Other expense (income)
Interest expense	4,891			4,642
Interest income	(5		)	(8		)
Acquisition-related expenses	61			—
Other expenses (income)	44			117
	4,991			4,751
Net income	$	468		$	93
Less: Net income attributable to preferred stock and units	(3,231		)	(2,027		)
Less: Net income attributable to restricted shares	(78		)	(62		)
Less: Net income attributable to non-controlling interest in consolidated real estate entities	—			(813		)
Add: Net loss attributable to common units in the Operating Partnership	203			299
Net loss attributable to Hudson Pacific Properties, Inc. shareholders	$	(2,638	)	$	(2,510	)
Net loss attributable to shareholders’ per share - basic and diluted	$	(0.08	)	$	(0.11	)
Weighted average shares of common stock outstanding - basic and diluted	33,320,450			21,949,118
Dividends declared per common share	$	0.125		$	0.125

7

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS

(unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2012		2011
Funds From Operations (FFO) (1)
Net (loss) income	468		93
Adjustments:
Depreciation and amortization of real estate assets	12,132		11,361
Less: Net loss (income) attributable to non-controlling interest in consolidated real estate entities	—		(813	)
Less: Net income attributable to preferred stock and units	(3,231	)	(2,027	)
FFO to common shareholders and unit holders	9,369		8,614
Specified items impacting FFO:
Acquisition-related expenses	61		—
Master Halco termination revenue	—		(2,744	)
Master Halco non-cash write-off	—		716
FFO (after specified items) to common shareholders and unit holders	9,430		6,586
Weighted average common shares/units outstanding - diluted	36,454		25,060
FFO per common share/unit - diluted	0.26		0.34
FFO (after specified items) per common share/unit - diluted	0.26		0.26
Adjusted Funds From Operations (AFFO) (1)
FFO	9,369		8,614
Adjustments:
Straight-line rent	(1,563	)	(876	)
Amortization of prepaid rent (2)	314		275
Amortization of above market and below market leases, net	(370	)	(93	)
Amortization of below market ground lease	62		80
Amortization of lease buy-out costs	23		339
Amortization of deferred financing costs and loan premium/discount, net	304		86
Recurring capital expenditures, tenant improvements and lease commissions	(2,004	)	(1,228	)
Non-cash compensation expense	1,229		720
AFFO	7,364		7,917
Dividends paid to common stock and unit holders	4,559		2,381
AFFO payout ratio	61.9	%	30.1	%

______________________________

(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.

First Quarter 2012 Supplemental Operating and Financial Data

DEBT SUMMARY

(In thousands)

The following table sets forth information with respect to our outstanding indebtedness as of March 31, 2012.

				Annual			Balance at
Debt	Outstanding		Interest Rate (1)	Debt Service (1)	Maturity Date		Maturity
Secured Revolving Credit Facility	$	10,000	LIBOR+2.50% to 3.25%	$ --	6/29/2013		$ --
Mortgage loan secured by 625 Second Street (2)	33,700		5.85%	1,999	2/1/2014		33,700
Mortgage loan secured by 6922 Hollywood Boulevard (3)	41,960		5.58%	3,230	1/1/2015		39,422
Mortgage loan secured by Sunset Gower/Sunset Bronson (4)	92,000		LIBOR+3.50%	--	2/11/2016		89,681
Mortgage loan secured by Rincon Center	108,647		5.136%	7,195	5/1/2018		97,673
Mortgage loan secured by First Financial	43,000		4.58%	2,002	2/1/2022		36,799
Mortgage loan secured by 10950 Washington (5)	29,970		5.316%	2,003	3/11/2022	99,719	24,632
Subtotal	$	359,277
Unamortized loan premium, net (6)	1,774
Total	$	361,051

______________________________

(1) Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed, excluding the amortization of loan fees and costs.

(2) This loan was assumed on September 1, 2011 in connection with the closing of our acquisition of 625 Second Street property.

(3) This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property.

(4) On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50.0 million of the loan through its maturity on February 11, 2016. On January 11, 2012 we purchased an interest rate cap in order to cap one-month LIBOR at 2.00% with respect to $42.0 million of the loan through its maturity on February 11, 2016.

(5) The loan bears interest only for the first two years. Beginning with the payment due March 1, 2014, monthly debt service will include principal payments based on a 30-year amortization schedule, for total annual debt service of $2,639.

(6) Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with 625 Second Street and 6922 Hollywood Boulevard.

9

PORTFOLIO DATA

10

Hudson Pacific Properties, Inc.

First Quarter 2012 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	6	2,216,545	61.9	%	89.6	%	$	47,826,703	$	24.08
Los Angeles	7	920,261	25.7	%	93.5	%	29,733,070		34.57
Orange County	1	333,922	9.3	%	77.9	%	6,391,023		24.56
San Diego	1	112,300	3.1	%	80.0	%	1,446,991		16.11
	15	3,583,028	100	%	89.2	%	$	85,397,787	$	26.72

______________________________

(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 March 31, 2012, 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 March 31, 2012, 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 March 31, 2012.

11

Hudson Pacific Properties, Inc.

First Quarter 2012 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	549,792	63.7	%	64.8	%	$	10,994,885	$	30.85
Sunset Bronson	313,723	36.3	%	76.9	%	9,725,908		40.32
	863,515	100.0	%	69.2	%	$	20,720,793	$	34.67

______________________________

(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 BOMA rentable area. Square footage may change over time due to remeasurement or releasing. On December 16, 2011 we acquired 20,261 square feet of office property located at 6050 Sunset and 1445 Beechwood, ancillary to our Sunset Gower property. Those acquisitions are reflected in the square footage for Sunset Gower as of December 16, 2011 on a weighted average basis. As of December 31, 2011, the square footage for Sunset Gower and Sunset Bronson totaled 878,196 square feet, including those acquisitions. Since the percent occupied is determined on a weighted average basis for the 12 months ended March 31, 2012, the square footage for 6050 Sunset and 1445 Beechwood is also included in the square footage for the media and entertainment properties on a weighted average basis.

(2) Percent occupied for media and entertainment properties is the average percent occupied for the 12 months ended March 31, 2012.

(3) Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended March 31, 2012, 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 March 31, 2012.

12

Hudson Pacific Properties, Inc.

First Quarter 2012 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 (3)	1	1	Various	832,549	23.2	%	$	9,409,853	11.0	%
AIG  (4)	1	1	Various	166,757	4.7	%	6,894,564		8.1	%
AT&T	1	1	8/31/2013	155,964	4.4	%	5,850,333		6.8	%
Fox Interactive Media, Inc.	1	1	3/31/2017	104,897	2.9	%	4,384,484		5.1	%
Technicolor Creative Services USA, Inc.	1	1	5/31/2020	114,958	3.2	%	4,246,778		5.0	%
GSA - U.S. Corps of Engineers	1	1	2/19/2017	89,995	2.5	%	3,260,240		3.8	%
NFL Enterprises	1	1	3/31/2015	104,589	2.9	%	3,250,922		3.8	%
Kondaur Capital Corp.	1	1	3/31/2013	125,208	3.5	%	3,185,292		3.7	%
Saatchi & Saatchi North America, Inc.	1	1	12/31/2019	113,000	3.2	%	3,069,070		3.6	%
Trailer Park, Inc.	1	1	9/30/2018	72,101	2.0	%	2,788,967		3.3	%
Total	10	10		1,880,018	52.5	%	$	46,340,503	54.2	%

______________________________

(1) Top Ten Largest Office Tenants is determined by Annualized Base Rental Income as of March 31, 2012.

(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 March 31, 2012, by (ii) 12.

(3) Bank of America lease expiration by square footage: (1) 50,948 sf at 12/31/2012; (2) 236,522 sf at 12/31/2013 (right of early termination); (3) 331,197 sf at 12/31/2015 (right of early termination); and (4) 213,882 sf at 12/31/2017.

(4) AIG has exercised an early termination right with respect to 18,364 square feet at Rincon Center, which expiration will become effective on July 31, 2012. The remaining 148,393 square feet under their lease is scheduled to expired on July 31, 2017.

13

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

OFFICE PORTFOLIO LEASING ACTIVITY

Total Gross Leasing Activity
Rentable square feet	88,332
Number of leases	14
Gross New Leasing Activity
Rentable square feet	73,356
New cash rate	$	35.02
Number of leases	8
Gross Renewal Leasing Activity
Rentable square feet	14,976
Renewal cash rate	$	29.64
Number of leases	6
Net Absorption
Leased rentable square feet	67,223
Cash Rent Growth (1)
Expiring Rate	$	30.52
New/Renewal Rate	$	34.33
Change	12.5		%
Straight-Line Rent Growth (2)
Expiring Rate	$	29.53
New/Renewal Rate	$	36.59
Change	23.9		%
Weighted Average Lease Terms
New (in months)	97
Renewal (in months)	35

Tenant Improvements and Leasing Commissions (3)	Total Lease Transaction Costs Per Square Foot	Annual Lease Transaction Costs Per Square Foot
New leases	$33.81	$4.19
Renewal leases	$10.89	$3.78
Blended	$29.92	$4.16

______________________________

(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.

First Quarter 2012 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	315,051	8.8	%	$	—	—		$	—	$	—
2012	240,708	6.7	%	6,244,603		7.1	%	25.94		25.98
2013	732,147	20.4	%	18,218,862		20.8	%	24.88		25.36
2014	150,934	4.2	%	4,957,345		5.7	%	32.84		34.27
2015	502,145	14.0	%	8,833,654		10.1	%	17.59		19.39
2016	235,298	6.6	%	6,971,898		8.0	%	29.63		32.98
2017	709,191	19.8	%	20,886,067		23.9	%	29.45		31.4
2018	134,471	3.8	%	4,584,501		5.2	%	34.09		39.62
2019	229,127	6.4	%	6,884,266		7.9	%	30.05		34.76
2020	211,000	5.9	%	6,929,269		7.9	%	32.84		46.13
2021	—	—	%	—		—	%	—		—
Thereafter	31,261	0.9	%	887,324		1.0	%	28.38		40.73
Building management use	20,241	0.5	%	—		—	%	—		—
Signed leases not commenced	71,454	2.0	%	2,064,630		2.4	%	28.89		44.22
Total/Weighted Average	3,583,028	100.0	%	$	87,462,419	100.0	%	$	26.76	$	27.13

______________________________

(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 March 31, 2012, 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 March 31, 2012.

(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 March 31, 2012.

15

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

QUARTERLY OFFICE LEASE EXPIRATIONS - NEXT FOUR QUARTERS

	Q2 2012			Q3 2012			Q4 2012			Q1 2013
County	Expiring SF	Rent per SF (1)		Expiring SF	Rent per SF (1)		Expiring SF	Rent per SF (1)		Expiring SF	Rent per SF (1)
San Francisco
Rincon Center	2,369	$	24.30	53,816	$	45.43	989	$	66.95	1,377	$	38.00
1455 Market Street	—	—		41,321	1.09		50,948	12.36		100	69.93
875 Howard Street	—	—		—	—		—	—		—	—
222 Kearny Street	2,092	29.50		4,330	53.45		1,827	47.27		8,831	42.58
625 Second Street	—	—		—	—		—	—		—	—
275 Brannan Street	—	—		—	—		—	—		—	—
Subtotal	4,461	$	26.74	99,467	$	27.36	53,764	$	14.55	10,308	$	42.23
Los Angeles
First Financial	772	$	29.66	—	$	—	1,348	$	31.83	4,438	$	38.21
Technicolor Building	—	—		—	—		—	—		—	—
Del Amo Office Building	—	—		—	—		—	—		—	—
9300 Wilshire	150	37.12		—	—		1,087	37.08		432	36.11
10950 Washington	425	31.06		—	—		—	—		—	—
604 Arizona	—	—		44,260	36.54		—	—		—	—
6922 Hollywood	—	—		2,222	38.56		—	—		—	—
Subtotal	1,347	$	30.93	46,482	$	36.63	2,435	$	34.17	4,870	$	38.02
Orange
City Plaza	8,618	$	23.85	9,202	$	27.40	—	$	—	127,337	$	25.42
Subtotal	8,618	$	23.85	9,202	$	27.40	—	$	—	127,337	$	25.42
San Diego
Tierrasanta	—	$	—	14,932	$	22.52	—	$	—	—	$	—
Subtotal	—	$	—	14,932	$	22.52	—	$	—	—	$	—
Total	14,426	$	25.41	170,083	$	29.47	56,199	$	15.40	142,515	$	27.07

______________________________

(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 March 31, 2012, by (ii) 12.

16

Hudson Pacific Properties, Inc.

First Quarter 2012 Supplemental Operating and Financial Data

OFFICE PORTFOLIO DIVERSIFICATION

	Total	Annualized Rent as
Industry	Square Feet (1)	of Percent of Total
Business Services	79,109	2.7	%
Educational	120,396	4.1	%
Financial Services	1,089,524	19.5	%
Insurance	180,964	8.4	%
Legal	144,738	5.0	%
Media & Entertainment	453,339	18.0	%
Other	63,875	1.0	%
Real Estate	63,320	2.5	%
Retail	201,945	6.2	%
Technology	501,393	21.1	%
Advertising	115,735	3.7	%
Government	125,447	5.8	%
Healthcare	56,738	2.0	%
Total	3,196,523	100.0	%

______________________________

(1) Does not include signed leases not commenced.

17

Hudson Pacific Properties, Inc.

First Quarter 2012 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 subtracting recurring capital expenditures, tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of straight-line rents, amortization of lease buy-out costs, and amortization of above/below market lease intangible assets and liabilities and amortization of loan discounts/premium. 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. 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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