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): February 26, 2014

_________________________________

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., Sixth Floor 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 February 26, 2014, 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 and year ended December 31, 2013. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on February 26, 2014, we made available on our Web site (www.hudsonpacificproperties.com) certain supplemental information concerning our financial results and operations for the fourth 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 and year ended December 31, 2013 and made available on our Web site certain supplemental information relating to our financial results for the quarter ended December 31, 2013.

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 February 26, 2014 regarding the Company’s financial results for the quarter and full-year ended December 31, 2013.
99.2**	Supplemental Operating and Financial Data for the quarter ended December 31, 2013.

** 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:	2/26/2014	By:	/s/ Mark T. Lammas
			Mark T. Lammas
			Chief Financial Officer

EXHBIT INDEX

Exhibit No.	Description
99.1**	Press release dated February 26, 2014 regarding the Company’s financial results for the quarter and full-year ended December 31, 2013.
99.2**	Supplemental Operating and Financial Data for the quarter ended December 31, 2013.

** Furnished herewith.

EX-99.1

Hudson Pacific Properties, Inc. Announces Fourth Quarter and Full Year 2013 Financial Results

Los Angeles, CA, February 26, 2014—Hudson Pacific Properties, Inc. (the “Company,” “we,” “us” or “our”) (NYSE: HPP) today announced financial results for the fourth quarter ended December 31, 2013.

Financial Results

Funds From Operations (FFO) (excluding specified items) for the three months ended December 31, 2013 totaled $15.6 million, or $0.26 per diluted share, compared to FFO (excluding specified items) of $11.6 million, or $0.23 per share, a year ago. The specified items for the fourth quarter of 2013 consisted of expenses associated with the acquisition of our office portfolio in Seattle, Washington of $0.5 million, or $0.01 per diluted share, and an early lease termination payment from Bank of America relating to the Company’s 1455 Market Street property of $0.8 million, or $0.01 per diluted share. Specified items for the fourth quarter of 2012 consisted of expenses associated with the acquisition of The Pinnacle office property in Burbank, California of $0.2 million, or $0.00 per diluted share. FFO, including the specified items, totaled $15.9 million, or $0.27 per diluted share, for the three months ended December 31, 2013, compared to $11.4 million, or $0.23 per share, a year ago.

The Company reported a net loss attributable to common stockholders of $0.1 million, or $0.00 per diluted share, for the three months ended December 31, 2013, compared to net loss attributable to common stockholders of $5.9 million, or $(0.13) per diluted share, for the three months ended December 31, 2012.

“The fourth quarter was an extremely productive period for Hudson that included significant new long-term leases and groundwork for a major acquisition announced subsequent to the end of the quarter,” said Mr. Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. “Leasing remained active with the completion of new and renewal leases totaling 416,948 square feet during the quarter. Highlights included a new 15-year lease with Riot Games, Inc. for our entire 284,037 square-foot Element LA campus located in West Los Angeles, California. We also entered a new 12-year lease with Deluxe Entertainment Services Inc. for our entire 63,376 square-foot 3401 Exposition Blvd. property located in Santa Monica, California. These new leases represent long-term commitments from leading technology companies on terms well above our original expectations for these properties. Our success in attracting exceptional tenants like Riot Games and Deluxe continues to unlock our portfolio’s value potential.”

Mr. Coleman continued, “Subsequent to the end of the quarter, we announced the acquisition of an office and retail property known as 'Merrill Place' located in downtown Seattle’s Pioneer Square submarket, directly adjacent to Hudson’s First & King property. This acquisition represents an excellent opportunity to expand our footprint in one of the fastest growing submarkets for technology tenants in Downtown Seattle and leverage our operational, leasing and development expertise to create value for our shareholders.”

Fourth Quarter Highlights

• FFO (excluding specified items) of $15.6 million, or $0.26 per diluted share, compared to $11.6 million, or $0.23 per share, a year ago;

• Completed new and renewal leases totaling 416,948 square feet;

• Stabilized office portfolio leased rate of 95.4% at December 31, 2013;

• Obtained a four-year loan secured by the Element LA property, which upon full disbursement, will total $65.5 million, to fund costs associated with the renovation and lease-up of this property;

• 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 December 31, 2013

Total revenue from continuing operations during the quarter increased 30.4% to $57.4 million from $44.0 million for the same quarter a year ago. Total operating expenses from continuing operations increased 12.3% to $47.0 million

from $41.9 million for the same quarter a year ago. As a result, income from operations increased 378.5% to $10.4 million for the fourth quarter of 2013, compared to income from operations of $2.2 million for the same quarter a year ago. The primary reasons for the increases in total revenue and total operating expenses are discussed below in connection with our segment operating results.

Interest expense during the fourth quarter increased 33.4% to $6.8 million, compared to interest expense of $5.1 million for the same quarter a year ago. At December 31, 2013, the Company had $931.3 million of notes payable, compared to $891.2 million as of September 30, 2013 and $582.1 million at December 31, 2012.

Segment Operating Results For The Three Months Ended December 31, 2013

Office Properties

Total revenue from continuing operations at the Company’s office properties increased 43.4% to $47.7 million from $33.2 million for the same quarter a year ago. The increase was primarily the result of a $10.9 million increase in rental revenue to $35.2 million, a $2.1 million increase in tenant recoveries to $8.3 million, and a $1.5 million increase in parking and other revenue to $4.3 million, largely resulting from the acquisition of the Pinnacle I and Pinnacle II buildings by our joint venture with MDP/Worthe on November 8, 2012 and June 14, 2013, respectively, and our acquisition of the Seattle portfolio on July 31, 2013. The parking and other revenue for the fourth quarter of 2013 includes an early lease termination payment from Bank of America relating to the Company’s 1455 Market Street property of $0.8 million.

Office property operating expenses from continuing operations increased 31.6% to $19.2 million from $14.6 million for the same quarter a year ago. The increase was primarily the result of the acquisitions of the office properties described above.

At December 31, 2013, the Company’s stabilized office portfolio was 95.4% leased. During the quarter, the Company executed 19 new and renewal leases totaling 416,948 square feet.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties decreased 9.8% to $9.7 million from $10.8 million for the same quarter a year ago. The decrease was primarily the result of a $0.7 million decrease in other property-related revenue to $3.3 million, resulting from lower production activity compared to the same quarter a year ago and a $0.4 million decrease in rental revenue to $5.8 million, resulting from lower occupancy compared to the same quarter a year ago.

Total media and entertainment operating expenses decreased 5.2% to $6.0 million from $6.3 million for the same quarter a year ago, primarily resulting from lower production activity compared to the same quarter a year ago.

As of December 31, 2013, the trailing 12-month occupancy for the Company’s media and entertainment portfolio decreased to 69.9% from 73.7% for the trailing 12-month period ended December 31, 2012.

Combined Operating Results For The Twelve Months Ended December 31, 2013

For the twelve months of 2013, total revenue from continuing operations was $205.6 million, an increase of 28.1% from $160.5 million in the same period the prior year. Total operating expenses from continuing operations were $177.6 million, compared to $146.2 million in the same period a year ago. As a result, income from operations increased 96.0% to $28.0 million for the twelve months of 2013, compared to income from operations of $14.3 million for the same period a year ago. The revenue for the twelve months of 2013 includes early lease termination payments from Bank of America relating to the Company’s 1455 Market Street property of $1.6 million (after the write-off of non-cash items), with no comparable activity for the same period a year ago. Operating expenses for the twelve months of 2013 include a property tax reimbursement resulting from the reassessment of the Sunset Gower media and

entertainment property of $0.8 million, compared to a supplemental property tax expense associated with our Technicolor property in the twelve months of 2012 of $0.9 million. The Company also had $1.4 million of acquisition-related expense during the twelve months of 2013, compared to $1.1 million of acquisition-related expense during the twelve months of 2012. Interest expense during the full year of 2013 increased 33.6% to $25.5 million from $19.1 million in the same period of 2012, primarily due to interest expenses for a full twelve months on the indebtedness associated with our First Financial and 10950 Washington properties, the increase in indebtedness associated with our 275 Brannan property financing on October 5, 2012, our 901 Market property financing on October 29, 2012, the indebtedness associated with the Pinnacle I and Pinnacle II buildings acquired on November 8, 2012 and June 14, 2013, respectively, and the indebtedness associated with the acquisition of the Seattle portfolio.

Balance Sheet

At December 31, 2013, the Company had total assets of $2.1 billion, including unrestricted cash and cash equivalents of $30.4 million. At December 31, 2013, we had $250.0 million of total capacity under our unsecured revolving credit facility, of which $155.0 million had been drawn.

Financings

On October 18, 2013, the Company closed a four-year loan with U.S. Bank, National Association, secured by the Company’s Element LA property, which upon full disbursement, will total $65.5 million. The loan bears interest at LIBOR plus 195 basis points and will mature on November 1, 2017, provided that the Company may extend such maturity for up to two one-year periods, subject to satisfaction of certain conditions. Proceeds from the loan are expected to be used to fund site-work, parking garage, base building, tenant improvement, and leasing commission costs associated with the renovation and lease-up of the property.

On November 1, 2013, the Company repaid a $33.7 million loan secured by the Company’s 625 Second Street property. That loan bore interest at a fixed rate of 5.85% and was scheduled to mature February 1, 2014. The repayment was made with proceeds from a draw under the Company’s unsecured revolving credit facility.

Leasing Activities

On October 22, 2013, the Company entered a new 12-year lease with Deluxe Entertainment Services Inc., a leading provider of services and technologies for the global digital media and entertainment industry, for its entire 63,376 square-foot 3401 Exposition Blvd. property located in Santa Monica, California. Commencement of the lease with Deluxe is scheduled for the third quarter 2014.

On November 4, 2013, the Company entered a new 15-year lease with Riot Games, Inc., a developer and publisher of premium, competitive online games, for the Company’s entire 284,037 square-foot Element LA campus located in West Los Angeles, California. The property is currently undergoing renovation and redevelopment. Commencement of the lease with Riot Games is scheduled for the second quarter of 2015.

Offerings (Subsequent to end of fourth quarter)

On January 28, 2014, the Company completed the public offering of 9,487,500 shares of its common stock (including 1,237,500 shares of its common stock issued and sold pursuant to the exercise of the underwriters’ option to purchase additional shares in full) at the public offering price of $21.50 per share. The net proceeds from the offering, after deducting underwriting discounts (before other transaction costs), were approximately $195.8 million. The Company contributed the net proceeds from this offering to its operating partnership to fund the acquisition of Merrill Place, development and redevelopment activities, potential acquisition opportunities and/or for general corporate purposes. Pending these applications, the Company’s operating partnership used the net proceeds from the offering to repay indebtedness outstanding under its unsecured revolving credit facility.

Acquisitions (Subsequent to end of fourth quarter)

On February 12, 2014, the Company acquired an office and retail property known as 'Merrill Place' located in downtown Seattle’s Pioneer Square submarket, directly adjacent to the Company’s First & King property. The property was acquired in an off-market transaction for a gross purchase price of approximately $57.7 million (before closing costs and prorations). Merrill Place consists of four interconnected brick and beam buildings spanning an entire city block and comprising approximately 179,000 square feet of office and ground floor retail, along with a 147-stall standalone parking structure. The property is currently 93% leased with approximately 52% of the leases scheduled to expire over the next four years. The Company intends to implement an extensive repositioning of the property, including lobby and common area upgrades, new tenant amenities, an elevator modernization, mechanical and electrical upgrades. Additionally, current zoning for the property allows for the potential development of a new office building fronting the soon to be improved Alaskan Way waterfront. The Company plans to commence the entitlement process immediately to allow for delivery of the new office building by 2017.

On February 5, 2014, the Company entered into a purchase agreement to acquire 3402 Pico Boulevard in Santa Monica, California for $18.5 million (before closing costs and prorations). 3402 Pico Boulevard consists of three contiguous parcels comprising nearly three acres. The Company estimates this site could support between 140,000 to 180,000 square feet of creative office space, including the complete refurbishment of an existing 40,000 square foot vacant office building. The Company’s goal is to fully redevelop the property into a state-of-the-art creative office campus. With the future Expo Light Rail stop at Olympic and Bundy within walking distance, close proximity to other major transportation thoroughfares, excellent visibility, and opportunity to deliver abundant outdoor amenities, 3402 Pico Boulevard is ideally suited for creative office users looking to be located in this already highly supply-constrained market. Subject to satisfaction of customary closing conditions, the Company anticipates closing this acquisition by the end of February 2014.

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 fourth quarter of 2013. Both dividends were paid on December 30, 2013 to stockholders of record on December 20, 2013.

2014 Outlook

The Company is providing full-year 2014 FFO guidance in the range of $1.07 to $1.11 per diluted share (excluding specified items). This guidance reflects the acquisitions, financings and leasing activity referenced in this press release and all previously announced acquisitions, dispositions, financings and leasing activity, including the January 2014 common stock offering. The costs associated with the consulting arrangement with Howard Stern have been excluded from the guidance estimate as non-recurring costs. As is always the case, the Company’s guidance does not reflect or attempt to anticipate any impact to FFO from speculative acquisitions. The full-year 2014 FFO estimate reflects 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 unannounced or speculative acquisitions, dispositions, debt financings or repayments, recapitalizations, capital market activity, or similar matters.

Supplemental Information

Supplemental financial information regarding the Company’s fourth quarter 2013 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 conduct a conference call to discuss the results at 1:30 p.m. PT / 4:30 p.m. ET on February 26, 2014. To participate in the event by telephone, please dial (877) 407-0784 five to 10 minutes prior to the start time (to allow time for registration) and use conference ID 13574631. International callers should dial (201) 689-8560 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. 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 February 26, 2014, at 4:30 p.m. PT / 7:30 p.m. ET, through March 5, 2014, at 8:59 p.m. PT / 11:59 p.m. ET. To access the replay, dial (877) 870-5176 and use passcode 13574631. International callers should dial (858) 384-5517 and enter the same conference ID number.

Use of Non-GAAP Information

The Company calculates 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. The Company uses 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. The Company also believes that, as a widely recognized measure of the performance of REITs, FFO will be used by investors as a basis to compare its 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 its properties, all of which have real economic effect and could materially impact the Company’s 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, the Company’s 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 the Company’s performance. FFO should not be used as a measure of the Company’s liquidity, nor is it indicative of funds available to fund the Company’s cash needs, including the Company’s 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 the Pacific Northwest and 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 and Seattle. The Company’s portfolio currently consists of approximately 6.2 million square feet, not including undeveloped land that the Company believes can support an additional 1.6 million square feet. The Company has elected to be taxed 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, 2012 filed with the Securities and Exchange Commission on March 14, 2013, 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 Sheet (In thousands, except share data)
	December 31, 2013			December 31, 2012
ASSETS	(Unaudited)			Audited
REAL ESTATE ASSETS
Land	$	581,842		$	478,273
Building and improvements	1,260,161			831,791
Tenant improvements	108,802			75,094
Furniture and fixtures	14,396			11,545
Property under development	70,129			23,961
Total real estate held for investment	2,035,330			1,420,664
Accumulated depreciation and amortization	(116,342		)	(80,303		)
Investment in real estate, net	1,918,988			1,340,361
Cash and cash equivalents	30,356			18,904
Restricted cash	16,750			14,322
Accounts receivable, net	8,253			12,167
Notes receivable	—			4,000
Straight-line rent receivables	22,030			12,732
Deferred leasing costs and lease intangibles, net	112,204			81,010
Deferred finance costs, net	8,577			8,175
Interest rate contracts	192			71
Goodwill	8,754			8,754
Prepaid expenses and other assets	5,170			4,588
Assets associated with real estate held for sale	—			54,608
TOTAL ASSETS	$	2,131,274		$	1,559,692
LIABILITIES AND EQUITY
Notes payable	$	931,308		$	582,085
Accounts payable and accrued liabilities	27,511			18,578
Below-market leases, net	45,441			31,560
Security deposits	6,022			5,291
Prepaid rent	7,651			11,276
Obligations associated with real estate held for sale	—			1,205
TOTAL LIABILITIES	1,017,933			649,995
6.25% series A cumulative redeemable preferred units of the Operating Partnership	10,475			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 outstanding at December 31, 2013 and December 31, 2012, respectively	145,000			145,000
Common stock, $0.01 par value, 490,000,000 authorized, 57,230,199 shares and 47,496,732 shares outstanding at December 31, 2013 and December 31, 2012, respectively	572			475
Additional paid-in capital	903,984			726,605
Accumulated other comprehensive loss	(997		)	(1,287		)
Accumulated deficit	(45,113		)	(30,580		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	1,003,446			840,213
Non-controlling interest—members in Consolidated Entities	45,683			1,460
Non-controlling common units in the Operating Partnership	53,737			55,549
TOTAL EQUITY	1,102,866			897,222
TOTAL LIABILITIES AND EQUITY	$	2,131,274		$	1,559,692

Hudson Pacific Properties, Inc.

Combined Statements of Operations

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

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Revenues
Office
Rental	$	35,174		$	24,298		$	124,839		$	88,459
Tenant recoveries	8,253			6,173			25,870			22,029
Parking and other	4,260			2,778			14,732			9,840
Total office revenues	47,687			33,249			165,441			120,328
Media & entertainment
Rental	5,841			6,267			23,003			23,598
Tenant recoveries	566			527			1,807			1,598
Other property-related revenue	3,267			3,936			15,072			14,733
Other	56			58			235			204
Total media & entertainment revenues	9,730			10,788			40,117			40,133
Total revenues	57,417			44,037			205,558			160,461
Operating expenses
Office operating expenses	19,243			14,622			63,434			50,599
Media & entertainment operating expenses	6,016			6,347			24,149			24,340
General and administrative	4,757			3,749			19,952			16,497
Depreciation and amortization	16,994			17,144			70,063			54,758
Total operating expenses	47,010			41,862			177,598			146,194
Income from operations	10,407			2,175			27,960			14,267
Other expense (income)
Interest expense	6,797			5,094			25,470			19,071
Interest income	(10		)	(157		)	(272		)	(306		)
Acquisition-related expenses	454			236			1,446			1,051
Other income	(140		)	(57		)	(99		)	(92		)
	7,101			5,116			26,545			19,724
Income (loss) from continuing operations	3,306			(2,941		)	1,415			(5,457		)
(Loss) income from discontinued operations	(37		)	(30		)	1,571			451
Impairment loss from discontinued operations	—			—			(5,580		)	—
Net (loss) income from discontinued operations	(37		)	(30		)	(4,009		)	451
Net income (loss)	$	3,269		$	(2,971	)	$	(2,594	)	$	(5,006	)
Net income attributable to preferred stock and units	(3,200		)	(3,231		)	(12,893		)	(12,924		)
Net income attributable to restricted shares	(71		)	(69		)	(300		)	(295		)
Net (income) loss attributable to non-controlling interest in Consolidated Entities	(78		)	21			321			21
Net (income) loss attributable to common units in the Operating Partnership	(3		)	310			633			1,014
Net loss attributable to Hudson Pacific Properties, Inc. common stockholders	$	(83	)	$	(5,940	)	$	(14,833	)	$	(17,190	)
Basic and diluted per share amounts:
Net loss from continuing operations attributable to common stockholders	$	—		$	(0.13	)	$	(0.20	)	$	(0.42	)
Net (loss) income from discontinued operations	—			—			(0.07		)	0.01
Net loss attributable to common stockholders’ per share—basic and diluted	$	—		$	(0.13	)	$	(0.27	)	$	(0.41	)
Weighted average shares of common stock outstanding—basic and diluted	56,271,285			46,690,196			55,182,647			41,640,691
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.500		$	0.500

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Reconciliation of net loss to Funds From Operations (FFO):
Net income (loss)	$	3,269		$	(2,971	)	$	(2,594	)	$	(5,006	)
Adjustments:
Depreciation and amortization of real estate assets	16,994			17,144			70,063			54,758
Depreciation and amortization—discontinued operations	—			458			789			2,266
Impairment loss	—			—			5,580			—
FFO attributable to non-controlling interest in Consolidated Entities	(1,132		)	(17		)	(2,243		)	(17		)
Net income attributable to preferred stock and units	(3,200		)	(3,231		)	(12,893		)	(12,924		)
FFO to common stockholders and unit holders	$	15,931		$	11,383		$	58,702		$	39,077
Specified items impacting FFO:
Acquisition-related expenses	454			236			1,446			1,051
One-time property tax expenses/(savings)	—			—			(797		)	918
Lease termination revenue	(753		)	—			(1,591		)	—
FFO (excluding specified items) to common stockholders and unit holders	$	15,632		$	11,619		$	57,760		$	41,046
Weighted average common stock/units outstanding—diluted	59,220			49,679			58,165			44,693
FFO per common stock/unit—diluted	$	0.27		$	0.23		$	1.01		$	0.87
FFO (excluding specified items) per common stock/unit—diluted	$	0.26		$	0.23		$	0.99		$	0.92

EX-99.2

HUDSON PACIFIC PROPERTIES, INC.

FOURTH QUARTER 2013

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 Northern and Southern California and the Pacific Northwest; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, early terminations of, or non-renewal of leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our outstanding indebtedness; difficulties in identifying properties to acquire and completing acquisitions; failure to successfully integrate pending and recent acquisitions; failure to successfully operate acquired properties and operations; failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended; possible adverse changes in laws and regulations; environmental uncertainties; risks related to natural disasters; lack or insufficient amount of insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; the consequences of any possible future terrorist attacks; and other risks and uncertainties detailed in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on March 14, 2013. 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 Annual Report on Form 10-K for the year ended December 31, 2012 filed with the Securities and Exchange Commission on March 14, 2013.

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 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
Same-Store Analysis	11
Reconciliation to Net Income	12
Stabilized Office Portfolio Summary, Occupancy and In-place Rents	13
Development, Redevelopment, Lease-up Properties, Properties Held-For-Sale, and Land Properties	14
Media & Entertainment Portfolio Summary, Occupancy, and In-place Rents	15
Fifteen Largest Office Tenants	16
Office Portfolio Leasing Activity	17
Office Lease Expirations — Annual	18
Quarterly Office Lease Expirations — Next Four Quarters	19
Office Portfolio Diversification	20
DEFINITIONS	21

2

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

COMPANY BACKGROUND

CORPORATE 11601 Wilshire Boulevard, Sixth Floor, 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
Managing General Partner, Clarity Partners L.P.			Co-Chief Executive, WME Entertainment
EXECUTIVE AND SENIOR MANAGEMENT
Victor J. Coleman		Mark T. Lammas	Christopher Barton
Chief Executive Officer		Chief Financial Officer	EVP, Operations and Development
Alexander Vouvalides		Dale Shimoda	Kay L. Tidwell
Chief Investment Officer		EVP, Finance	EVP, General Counsel and Secretary
Arthur X. Suazo		Harout Diramerian	Drew Gordon
VP, Leasing		Chief Accounting Officer	SVP, Pacific Northwest
Elva Hernandez			Gary Hansel
VP, Controller			SVP, Regional Operations
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.

Fourth Quarter 2013 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 and the Pacific Northwest. 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, the East Bay, and the Pacific Northwest, 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	24
Office properties square feet (in thousands)	5,293
Stabilized office properties leased rate as of December 31, 2013(1)	95.4		%
Stabilized office properties occupied rate as of December 31, 2013(1)(2)	90.1		%
Number of media & entertainment properties owned	2
Media & entertainment square feet (in thousands)	884
Media & entertainment occupied rate as of December 31, 2013(3)	69.9		%
Number of land assets owned	4
Land assets estimated developable square feet (in thousands)(4)	1,587
Market capitalization (in thousands):
Total debt(5)	$	925,988
Series A Preferred Units	10,475
Series B Preferred Stock	145,000
Common equity capitalization(6)	1,308,517
Total market capitalization	$	2,389,980
Debt/total market capitalization	38.7		%
Series A preferred units & debt/total market capitalization	39.2		%
Common stock data (NYSE:HPP):
Range of closing prices(7)	$ 19.03-22.29
Closing price at quarter end	$	21.87
Weighted average fully diluted common stock\units outstanding (in thousands)(8)	59,220
Shares of common stock\units outstanding on December 31, 2013 (in thousands)(9)	59,832

__________________________

(1) Stabilized office properties leased rate and occupied rate excludes the development, redevelopment, lease-up properties, and properties held-for-sale described on page 14.

(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 December 31, 2013.

(4) Estimated developable 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 common units of partnership interests, or common units, in Hudson Pacific Properties, L.P., or the Operating Partnership, not owned by us multiplied by the closing price of our stock at the end of the period.

(7) For the quarter ended December 31, 2013.

(8) For the quarter ended December 31, 2013, diluted shares represent ownership in our Company through shares of common stock, common units and other convertible or exchangeable instruments. While our series A preferred units became exchangeable on June 29, 2013, the conversion of the series A preferred units into shares of our common stock would be anti-dilutive based on the average daily share price of our common stock over the three months ended December 31, 2013, and therefore the fully diluted common stock\units do not include shares issuable upon exchange of our series A preferred units.

(9) This amount represents fully diluted common stock and common units (including unvested restricted stocks) at December 31, 2013. While our series A preferred units became exchangeable on June 29, 2013, the conversion of the series A preferred units into shares of our common stock would be anti-dilutive based on the average daily share price of our common stock over the three months ended December 31, 2013, and therefore the fully diluted common stock\units do not include shares issuable upon exchange of our series A preferred units.

4

CONSOLIDATED FINANCIAL RESULTS

5

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

Consolidated Balance Sheets

(Unaudited, in thousands, except share data)

	December 31, 2013			December 31, 2012
ASSETS
Total investment in real estate, net	$	1,918,988		$	1,340,361
Cash and cash equivalents	30,356			18,904
Restricted cash	16,750			14,322
Accounts receivable, net	8,253			12,167
Notes receivable	—			4,000
Straight-line rent receivables	22,030			12,732
Deferred leasing costs and lease intangibles, net	112,204			81,010
Deferred finance costs, net	8,577			8,175
Interest rate contracts	192			71
Goodwill	8,754			8,754
Prepaid expenses and other assets	5,170			4,588
Assets associated with real estate held for sale	—			54,608
TOTAL ASSETS	$	2,131,274		$	1,559,692
LIABILITIES AND EQUITY
Notes payable	$	931,308		$	582,085
Accounts payable and accrued liabilities	27,511			18,578
Below-market leases, net	45,441			31,560
Security deposits	6,022			5,291
Prepaid rent	7,651			11,276
Obligations associated with real estate held for sale	—			1,205
TOTAL LIABILITIES	$	1,017,933		$	649,995
6.25% series A cumulative redeemable preferred units of the Operating Partnership	10,475			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 outstanding at December 31, 2013 and December 31, 2012, respectively	$	145,000		$	145,000
Common stock, $0.01 par value, 490,000,000 authorized, 57,230,199 shares and 47,496,732 shares outstanding at December 31, 2013 and December 31, 2012, respectively	572			475
Additional paid-in capital	903,984			726,605
Accumulated other comprehensive loss	(997		)	(1,287		)
Accumulated deficit	(45,113		)	(30,580		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	$	1,003,446		$	840,213
Non-controlling interest—members in Consolidated Entities	45,683			1,460
Non-controlling common units in the Operating Partnership	53,737			55,549
TOTAL EQUITY	$	1,102,866		$	897,222
TOTAL LIABILITIES AND EQUITY	$	2,131,274		$	1,559,692

6

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 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,
	2013			2012			2013			2012
Revenues
Office
Rental	$	35,174		$	24,298		$	124,839		$	88,459
Tenant recoveries	8,253			6,173			25,870			22,029
Parking and other	4,260			2,778			14,732			9,840
Total office revenues	$	47,687		$	33,249		$	165,441		$	120,328
Media & entertainment
Rental	$	5,841		$	6,267		$	23,003		$	23,598
Tenant recoveries	566			527			1,807			1,598
Other property-related revenue	3,267			3,936			15,072			14,733
Other	56			58			235			204
Total media & entertainment revenues	$	9,730		$	10,788		$	40,117		$	40,133
Total revenues	$	57,417		$	44,037		$	205,558		$	160,461
Operating expenses
Office operating expenses	$	19,243		$	14,622		$	63,434		$	50,599
Media & entertainment operating expenses	6,016			6,347			24,149			24,340
General and administrative	4,757			3,749			19,952			16,497
Depreciation and amortization	16,994			17,144			70,063			54,758
Total operating expenses	$	47,010		41,862			$	177,598		$	146,194
Income from operations	$	10,407		$	2,175		$	27,960		$	14,267
Other expense (income)
Interest expense	$	6,797		$	5,094		$	25,470		$	19,071
Interest income	(10		)	(157		)	(272		)	(306		)
Acquisition-related expenses	454			236			1,446			1,051
Other income	(140		)	(57		)	(99		)	(92		)
Total other expense (income)	$	7,101		$	5,116		$	26,545		$	19,724
Income (loss) from continuing operations	$	3,306		$	(2,941	)	$	1,415		$	(5,457	)
(Loss) income from discontinued operations	(37		)	(30		)	1,571			451
Impairment loss from discontinued operations	—			—			(5,580		)	—
Net (loss) income from discontinued operations	$	(37	)	$	(30	)	$	(4,009	)	$	451
Net income (loss)	$	3,269		$	(2,971	)	$	(2,594	)	$	(5,006	)
Net income attributable to preferred stock and units	$	(3,200	)	$	(3,231	)	$	(12,893	)	$	(12,924	)
Net income attributable to restricted shares	(71		)	(69		)	(300		)	(295		)
Net (income) loss attributable to non-controlling interest in Consolidated Entities	(78		)	21			321			21
Net (income) loss attributable to common units in the Operating Partnership	(3		)	310			633			1,014
Net loss attributable to Hudson Pacific Properties, Inc. common stockholders	$	(83	)	$	(5,940	)	$	(14,833	)	$	(17,190	)
Basic and diluted per share amounts:
Net loss from continuing operations attributable to common stockholders	$	—		$	(0.13	)	$	(0.20	)	$	(0.42	)
Net (loss) income from discontinued operations	—			—			(0.07		)	0.01
Net loss attributable to common stockholders’ per share—basic and diluted	$	—		$	(0.13	)	$	(0.27	)	$	(0.41	)
Weighted average shares of common stock outstanding—basic and diluted	56,271,285			46,690,196			55,182,647			41,640,691
Dividends declared per share of common stock	$	0.125		$	0.125		$	0.500		$	0.500

7

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 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,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Funds From Operations (FFO)(1)
Net income (loss)	$	3,269		$	(2,971	)	$	(2,594	)	$	(5,006	)
Adjustments:
Depreciation and amortization of real estate assets	16,994			17,144			70,063			54,758
Depreciation and amortization—discontinued operations	—			458			789			2,266
Impairment loss	—			—			5,580			—
FFO attributable to non-controlling interest in Consolidated Entities	(1,132		)	(17		)	(2,243		)	(17		)
Net income attributable to preferred stock and units	(3,200		)	(3,231		)	(12,893		)	(12,924		)
FFO to common stockholders and unit holders	$	15,931		$	11,383		$	58,702		$	39,077
Specified items impacting FFO:
Acquisition-related expenses	$	454		$	236		$	1,446		$	1,051
Supplemental property tax expenses/(savings)	—			—			(797		)	918
Lease termination revenue	(753		)	—			(1,591		)	—
FFO (excluding specified items) to common stockholders and unit holders	$	15,632		$	11,619		$	57,760		$	41,046
Weighted average common stock/units outstanding—diluted	59,220			49,679			58,165			44,693
FFO per common stock/unit—diluted	$	0.27		$	0.23		$	1.01		$	0.87
FFO (excluding specified items) per common stock/unit—diluted	$	0.26		$	0.23		$	0.99		$	0.92
Adjusted Funds From Operations (AFFO)(1)
FFO	$	15,931		$	11,383		$	58,702		$	39,077
Adjustments:
Straight-line rent	(2,434		)	(119		)	(10,066		)	(3,365		)
Amortization of prepaid rent(2)	—			327			109			1,294
Amortization of above market and below market leases, net	(1,684		)	(1,209		)	(6,028		)	(3,564		)
Amortization of below market ground lease	62			62			247			247
Amortization of lease buy-out costs	(1		)	23			36			91
Amortization of deferred financing costs and loan premium/discount, net	65			250			486			1,126
Recurring capital expenditures, tenant improvements and lease commissions	(11,952		)	(7,906		)	(47,805		)	(17,844		)
Non-cash compensation expense	1,480			1,014			6,454			4,212
AFFO	$	1,467		$	3,825		$	2,135		$	21,274
Dividends paid to common stock and unit holders	$	7,446		$	6,207		$	29,607		$	23,199
AFFO payout ratio	507.6		%	162.3		%	1,386.7		%	109.0		%

______________________________

(1) See page 21 for Management’s 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 2013 Supplemental Operating and Financial Data

DEBT SUMMARY

(unaudited, $ in thousands)

The following table sets forth information with respect to our outstanding indebtedness as of December 31, 2013.

				Annual			Balance at
Debt	Outstanding		Interest Rate(1)	Debt Service(1)		Maturity Date	Maturity
Unsecured Revolving Credit Facility	$	155,000	LIBOR+1.55% to 2.20%	$	—	8/3/2016	$	155,000
Mortgage loan secured by 3401 Exposition Boulevard(2)	13,233		LIBOR+3.80%	—		5/31/2014	13,233
Mortgage loan secured by 6922 Hollywood Boulevard(3)	40,396		5.58%	3,230		1/1/2015	39,426
Mortgage loan secured by 275 Brannan	15,000		LIBOR+2.00%	—		10/5/2015	15,000
Mortgage loan secured by Pinnacle II(4)	88,540		6.313%	6,754		9/6/2016	85,301
Mortgage loan secured by 901 Market(5)	49,600		LIBOR+2.25%	—		10/31/2016	49,600
Mortgage loan secured by Element LA(6)	566		LIBOR+1.95%	—		11/1/2017	566
Mortgage loan secured by Sunset Gower/Sunset Bronson(7)	97,000		LIBOR+2.25%	—		2/11/2018	97,000
Mortgage loan secured by Rincon Center(8)	105,853		5.134%	7,195		5/1/2018	97,673
Mortgage loan secured by First & King(9)	95,000		LIBOR+1.60%	—		8/31/2018	90,188
Mortgage loan secured by Met Park North(10)	64,500		LIBOR+1.55%	—		8/1/2020	64,500
Mortgage loan secured by First Financial(11)	43,000		4.58%	2,002		2/1/2022	36,799
Mortgage loan secured by 10950 Washington(12)	29,300		5.316%	2,639		3/11/2022	24,632
Mortgage loan secured by Pinnacle I(13)	129,000		3.954%	5,172		11/7/2022	117,190
Subtotal	$	925,988
Unamortized loan premium, net(14)	5,320
Total	$	931,308

______________________________

(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 May 22, 2013 in connection with the closing of our acquisition of the 3401 Exposition Boulevard property.

(3) This loan was assumed on November 22, 2011 in connection with the closing of our acquisition of the 6922 Hollywood Boulevard property. This loan is amortizing based on a 30-year amortization schedule.

(4) This loan was assumed on June 14, 2013 in connection with the contribution of the Pinnacle II building to the Company’s joint venture with M. David Paul & Associates/Worthe Real Estate Group. This loan bore interest only for the first five years. Beginning with the payment due October 6, 2011, monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule.

(5) On October 29, 2012, we obtained a loan for our 901 Market property pursuant to which we borrowed $49,600 upon closing, with the ability to draw up to an additional $11,900 for budgeted base building, tenant improvements, and other costs associated with the renovation and lease-up of that property.

(6) We have the ability to draw up to $65,500 for budgeted site-work, construction of a parking garage, base building, tenant improvement, and leasing commission costs associated with the renovation and lease-up of the property.

(7) On March 16, 2011, we purchased an interest rate cap in order to cap one-month LIBOR at 3.715% with respect to $50,000 of the loan through 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 $42,000 of the loan through February 11, 2016. Effective August 22, 2013, the terms of this loan were amended to increase the outstanding balance from $92,000 to $97,000, reduce the interest rate from LIBOR plus 3.50% to LIBOR plus 2.25%, and extend the maturity date from February 11, 2016 to February 11, 2018.

(8) This loan is amortizing based on a 30-year amortization schedule.

(9) This loan bears interest only for the first two years. Beginning with the payment due August 1, 2015, monthly debt service will include annual debt amortization payments of $1,604 based on a 30-year amortization schedule.

(10) This loan bears interest only at a rate equal to one-month LIBOR plus 1.55%. The full loan amount is subject to an interest rate contract that swapped one-month LIBOR to a fixed rate of 2.1644% through the loan's maturity on August 1, 2020.

(11) This 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.

(12) This loan is amortizing based on a 30-year amortization schedule.

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

(14) Represents unamortized amount of the non-cash mark-to-market adjustment on debt associated with 6922 Hollywood Boulevard and Pinnacle II.

9

PORTFOLIO DATA

10

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

SAME-STORE ANALYSIS⁽¹⁾ 

(unaudited, $ in thousands)

	Three Months Ended December 31,								Twelve Months Ended December 31,
	2013			2012			% change		2013					2012				% change
Same-store office statistics
Number of properties	13			13					13					13
Rentable square feet	3,197,547			3,197,547					3,197,547					3,197,547
Ending % leased	95.5		%	94.0		%	1.6	%	95.5		%			94.0		%		1.6	%
Ending % occupied	88.7		%	88.5		%	0.2	%	88.7		%			88.5		%		0.2	%
Quarterly average % occupied	87.5		%	89.0		%	(1.7	)%	89.7		%			90.6		%		(1.0	)%
Same-store media statistics
Number of properties	2			2					2					2
Rentable square feet	874,562			874,562					874,562					874,562
TTM average % occupied	69.9		%	74.0		%	(5.5	)%	69.9		%			74.0		%		(5.5	)%
Quarterly average % occupied	70.1		%	76.6		%	(8.5	)%	69.9		%			74.0		%		(5.5	)%
Same-store net operating income — GAAP basis
Total office revenues	$	29,177		$	22,795		28.0	%	$	116,686		(3	)	$	91,200			27.9	%
Total media revenues	9,560			10,629			(10.1	)	39,113					39,514				(1.0	)
Total revenues	$	38,737		$	33,424		15.9	%	$	155,799				$	130,714			19.2	%
Total office expense	$	12,944		$	10,333		25.3	%	$	47,529				$	40,713		(2)	0.2
Total media expense	5,699			6,320			(9.8	)	23,714			(4	)	24,205				(2.0	)
Total property expense	$	18,643		$	16,653		11.9	%	$	71,243				$	64,918			9.7	%
Same-store office net operating income — GAAP basis	$	16,233		$	12,462		30.3	%	$	69,157				$	50,487			37.0	%
Same-store media net operating income — GAAP basis	3,861			4,309			(10.4	)	15,399					15,309				0.6
Same-store total property net operating income — GAAP basis	$	20,094		$	16,771		19.8	%	$	84,556				$	65,796			28.5	%
Same-store net operating income — Cash basis
Total office revenues	$	27,643		$	22,656		22.0	%	$	108,606		(3	)	$	87,644			23.9	%
Total media revenues	9,559			10,624			(10.0	)	39,081					39,467				(1.0	)
Total revenues	$	37,202		$	33,280		11.8	%	$	147,687				$	127,111			16.2	%
Total office expense	$	12,882		$	10,271		25.4	%	$	47,282				$	39,548			19.6	%
Total media expense	5,699			6,320			(9.8	)	23,714			(4	)	24,205				(2.0	)
Total property expense	$	18,581		$	16,591		12.0	%	$	70,996				$	63,753			11.4	%
Same-store office net operating income — Cash basis	$	14,761		$	12,385		19.2	%	$	61,324				$	48,096			27.5	%
Same-store media net operating income — Cash basis	3,860			4,304			(10.3	)	15,367					15,262				0.7
Same-store total property net operating income — Cash basis	$	18,621		$	16,689		11.6	%	$	76,691				$	63,358			21.0	%

______________________________

(1) “Same store” is defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2012 and still owned and included in the stabilized portfolio as of December 31, 2013.

(2) Amount excludes a $918 tax charge disclosed in the Q2-2012 earnings release.

(3) Amount excludes a $1,082 early lease termination fee income disclosed in the Q1-2013 earnings release.

(4) Amount excludes a $797 property tax savings disclosed in the Q1-2013 earnings release.

11

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

RECONCILIATION OF SAME-STORE PROPERTY NET OPERATING INCOME TO GAAP NET INCOME (LOSS)

(unaudited, $ in thousands)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Reconciliation to net income
Same-store office revenues — Cash basis	$	27,643		$	22,656		$	108,606		$	87,644
GAAP adjustments to office revenues — Cash basis	1,534			139			8,080			3,556
Early lease termination fee adjustment to office revenues	753			—			1,834			—
Same-store office revenues — GAAP basis	$	29,930		$	22,795		$	118,520		$	91,200
Same-store media revenues — Cash basis	$	9,559		$	10,624		$	39,081		$	39,467
GAAP adjustments to media revenues — Cash basis	1			5			32			47
Same-store media revenues — GAAP basis	$	9,560		$	10,629		$	39,113		$	39,514
Same-store property revenues — GAAP basis	$	39,490		$	33,424		$	157,633		$	130,714
Same-store office expenses — Cash basis	$	12,882		$	10,271		$	47,282		$	39,548
GAAP adjustments to office expenses — Cash basis	62			62			247			247
One-time expense adjustments per definition	—			—			—			918
Same-store office expenses — GAAP basis	$	12,944		$	10,333		$	47,529		$	40,713
Same-store media expenses — Cash basis	$	5,699		$	6,320		$	23,714		$	24,205
GAAP adjustments to media expenses — Cash basis	—			—			—			—
Property tax savings adjustment to media expenses	—			—			(797		)	—
Same-store media expenses — GAAP basis	$	5,699		$	6,320		$	22,917		$	24,205
Same-store property expenses — GAAP basis	$	18,643		$	16,653		$	70,446		$	64,918
Same-store net operating income — GAAP basis	$	20,847		$	16,771		$	87,187		$	65,796
Non-Same Store GAAP net operating income	11,311			6,297			30,788			19,726
General and administrative	(4,757		)	(3,749		)	(19,952		)	(16,497		)
Depreciation and amortization	(16,994		)	(17,144		)	(70,063		)	(54,758		)
Income from operations	$	10,407		$	2,175		$	27,960		$	14,267
Interest expense	(6,797		)	(5,094		)	(25,470		)	(19,071		)
Interest income	10			157			272			306
Acquisition-related expenses	(454		)	(236		)	(1,446		)	(1,051		)
Other expenses (income)	140			57			99			92
Impairment loss from discontinued operations	—			—			(5,580		)	—
Income from discontinued operations	(37		)	(30		)	1,571			451
Net income	$	3,269		$	(2,971	)	$	(2,594	)	$	(5,006	)

12

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

STABILIZED OFFICE PORTFOLIO SUMMARY, OCCUPANCY, AND IN-PLACE RENTS⁽¹⁾ 

(unaudited)

		Percent of Total		Percent Occupied(3)		Percent Leased(3)		Annualized Base Rent(4)		Annualized Base Rent Per Square Foot(4)		Monthly Rent Per Square Foot
County	Square Feet(2)
Seattle
Met Park North	190,748	4.7	%	95.4	%	95.4	%	$	4,702,751	$	25.85	$	2.15
Subtotal	190,748	4.7	%	95.4	%	95.4	%	$	4,702,751	$	25.85	$	2.15
San Francisco
Rincon Center	580,850	14.2	%	69.8	%	88.8	%	$	16,263,997	$	40.09	$	3.34
1455 Market Street	1,012,012	24.8		88.0		96.7		18,821,822		21.14		1.76
875 Howard Street	286,270	7.0		97.9		99.4		7,019,003		25.05		2.09
222 Kearny Street	148,797	3.6		91.6		91.6		4,900,281		35.96		3.00
625 Second Street	137,018	3.4		89.6		100.0		5,391,747		43.91		3.66
275 Brannan Street	54,673	1.3		100.0		100.0		2,897,669		53.00		4.42
Subtotal	2,219,620	54.4	%	85.1	%	94.9	%	$	55,294,519	$	29.26	$	2.44
Los Angeles
First Financial	222,423	5.5	%	95.8	%	95.8	%	$	7,284,917	$	34.20	$	2.85
Technicolor Building	114,958	2.8		100.0		100.0		4,549,302		39.57		3.30
Del Amo Office Building	113,000	2.8		100.0		100.0		3,069,070		27.16		2.26
9300 Wilshire	61,224	1.5		96.2		98.0		2,398,198		40.71		3.39
10950 Washington	159,024	3.9		100.0		100.0		5,190,720		32.64		2.72
604 Arizona	44,260	1.1		100.0		100.0		1,779,252		40.20		3.35
6922 Hollywood	205,523	5.0		92.2		92.2		7,963,981		42.04		3.50
10900 Washington	9,919	0.2		100.0		100.0		339,176		34.19		2.85
Pinnacle I	393,777	9.7		91.7		91.7		14,829,638		41.05		3.42
Pinnacle II	231,864	5.7		99.2		99.2		8,637,927		37.56		3.13
Subtotal	1,555,972	38.1	%	96.0	%	96.1	%	$	56,042,181	$	37.52	$	3.13
San Diego
Tierrasanta	112,300	2.8	%	96.4	%	96.4	%	$	1,569,572	$	14.50	$	1.21
Subtotal	112,300	2.8	%	96.4	%	96.4	%	$	1,569,572	$	14.50	$	1.21
TOTAL	4,078,640	100.0	%	90.1	%	95.4	%	$	117,609,023	$	32.01	$	2.67

_____________________________

(1) Our stabilized portfolio excludes undeveloped land, development and redevelopment properties currently under construction or committed for construction, “lease-up” properties and properties “held for sale”. As of December 31, 2013, we had no office development property under construction, three office redevelopment properties (Element LA, 3401 Exposition, and 1861 Bundy) under construction, three lease-up properties (901 Market Street, First & King, and Northview) and no properties held for sale. We define “lease-up” properties as properties we recently purchased, developed, or redeveloped that have not yet reached 92% occupancy and are within one year following purchase and cessation of major construction activities, as applicable.

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

(3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2013, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.

(4) Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2013, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced leases as of December 31, 2013. Annualized base rent does not reflect tenant reimbursements.

13

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

DEVELOPMENT, REDEVELOPMENT, LEASE-UP PROPERTIES, AND PROPERTIES HELD-FOR-SALE⁽¹⁾ 

(unaudited)

										Annualized Base Rent Per Square Foot(4)		Monthly Rent Per Square Foot
		Percent of Total		Percent Occupied(3)		Percent Leased(3)		Annualized Base Rent(4)
County	Square Feet(2)
Seattle
First & King	472,223	38.9	%	90.5	%	90.5	%	$	9,130,740	$	21.37	$	1.78
Northview	182,229	15.0		83.3		83.3		3,119,304		20.56		1.71
Subtotal	654,452	53.9	%	88.5	%	88.5	%	$	12,250,044	$	21.16	$	1.76
San Francisco
901 Market Street	212,319	17.5	%	54.5	%	76.9	%	$	3,435,511	$	29.69	$	2.47
Subtotal	212,319	17.5	%	54.5	%	76.9	%	$	3,435,511	$	29.69	$	2.47
Los Angeles
Element LA(5)	247,545	20.4	%	—	%	100.0	%	$	—	$	—	$	—
3401 Exposition(6)	63,376	5.2		—		100.0		—		—		—
1861 Bundy(5)	36,492	3.0		—		100.0		—		—		—
Subtotal	347,413	28.6	%	—	%	100.0	%	$	—	$	—	$	—
TOTAL	1,214,184	100.0	%	57.2	%	89.7	%	$	15,685,555	$	22.58	$	1.88

LAND PROPERTIES

County	Estimated Developable Square Feet(7)	Percent of Total
Los Angeles
Sunset Bronson—Lot A	273,913	17.3	%
Sunset Bronson—Redevelopment	389,740	24.6
Sunset Gower— Redevelopment	423,396	26.7
Element LA	500,000	31.5
TOTAL	1,587,049	100.0	%

______________________________

(1) Excludes stabilized properties. As of December 31, 2013, we had no office development property under construction, three office redevelopment properties (Element LA, 3401 Exposition, and 1861 Bundy) under construction, three lease-up properties (901 Market Street, First & King, and Northview) and no properties held for sale. We define “lease-up” properties as properties we recently purchased, developed, or redeveloped that have not yet reached 92% occupancy and are within one year following purchase and cessation of major construction activities, as applicable.

(2) Estimated developable square footage for office 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.

(3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of December 31, 2013, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases.

(4) Rent data for our office properties is presented on an annualized basis. Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2013, by (ii) 12. Annualized base rent per square foot for the office properties is calculated as (i) annualized base rent divided by (ii) square footage under commenced lease as of December 31, 2013. Annualized base rent does not reflect tenant reimbursements.

(5) Element LA and 1861 Bundy are subject to a 15-year lease with Riot Games, Inc. for all 247,545 square feet at Element LA and 36,492 square feet at 1861 Bundy. The lease was executed on November 4, 2013. Commencement of the lease is scheduled for the second quarter of 2015.

(6) 3401 Exposition is subject to a 12-year lease with Deluxe Entertainment Services Inc. for all 63,376 square feet. The lease was executed on October 22, 2013. Commencement of the lease is scheduled for the third quarter of 2014.

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

14

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

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

Property	Square Feet(1)	Percent of Total		Percent Leased(2)		Annual Base Rent(3)		Annual Base Rent Per Leased Square Foot(4)
Sunset Gower	570,470	64.5	%	65.3	%	$	12,270,624	$	32.92
Sunset Bronson	313,723	35.5		78.1		8,733,969		35.63
TOTAL	884,193	100.0	%	69.9	%	$	21,004,593	$	34.00

______________________________

(1) Square footage for media and entertainment properties has been determined by management based upon estimated gross 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 leased for media and entertainment properties is the average percent leased for the 12 months ended December 31, 2013.

(3) Annual base rent for media and entertainment properties reflects actual base rent for the 12 months ended December 31, 2013, 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, 2013.

15

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

FIFTEEN LARGEST OFFICE TENANTS

Tenant	Number of Leases	Number of Properties	Lease Expiration	Total Leased Square Feet	Percent of Rentable Square Feet		Annualized Base Rent(1)		Percent of Annualized Base Rent
Warner Bros. Entertainment	1	1	12/31/2021	230,000	4.3	%	$	8,637,927	6.5	%
Warner Music Group	1	1	12/31/2019	195,166	3.7		7,881,178		5.9
EMC Corporation(2)	2	2	Various	294,756	5.6		7,033,054		5.3
Bank of America(3)	1	1	Various	502,233	9.5		6,432,454		4.8
Square	1	1	9/27/2023	202,606	3.8		6,322,405		4.7
AIG(4)	1	1	Various	140,564	2.7		6,183,793		4.6
GSA(5)	4	3	Various	168,393	3.2		5,350,456		4.0
NFL Enterprises	2	2	6/30/2017	137,305	2.6		4,704,997		3.5
Fox Interactive Media, Inc.	1	1	3/31/2017	104,897	2.0		4,594,278		3.4
Technicolor Creative Services USA, Inc.	1	1	5/31/2020	114,958	2.2		4,549,302		3.4
Clear Channel	1	1	9/30/2016	107,715	2.0		4,479,985		3.4
Salesforce.com(6)	1	1	Various	93,028	1.8		4,093,232		3.1
Amazon	1	1	11/30/2023	139,824	2.6		3,669,637		2.8
Capital One	1	1	2/28/2019	133,148	2.5		3,269,711		2.5
Saatchi & Saatchi North America, Inc.	1	1	12/31/2019	113,000	2.1		3,069,070		2.3
TOTAL	20	19		2,677,593	50.6	%	$	80,271,479	60.2	%

______________________________

(1) Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of December 31, 2013, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(2) EMC expirations by property and square footage: (1) 66,510 square feet at 875 Howard Street expiring on June 30, 2019; and (2) 228,246 square feet at First & King expiring on December 31, 2023.

(3) We have completed leases at our 1455 Market property with Square Inc. for 332,492 square feet which backfills certain space currently leased to Bank of America. The following summarizes Bank of America’s early termination rights by square footage as of December 31, 2013, subject to the pending lease commencements with Square Inc.: (1) 152,373 square feet at December 31, 2013, 129,886 square feet of which is scheduled to be delivered to Square Inc. in January 2014 for lease commencement in January 2014; (2) 212,854 square feet at December 31, 2015; and (3) 137,006 square feet at December 31, 2017.

(4) AIG expirations by square feet: (1) 7,964 square feet expiring on August 31, 2014; and (2) 132,600 square feet expiring on July 31, 2017.

(5) GSA expirations by property and square footage: (1) 89,995 square feet at 1455 Market Street expiring on February 19, 2017; (2) 5,906 square feet at 901 Market Street expiring on April 30, 2017; (3) 28,993 square feet at Northview expiring on April 4, 2020; and (4) 43,499 square feet at 901 Market Street expiring on July 31, 2021.

(6) We have completed leases at our Rincon Center property with Salesforce.com for 235,733 square feet of which 142,705 square feet has yet to commence. The following summarizes Salesforce.com's expirations by square feet: (1) 83,016 uncommenced square feet expiring on July 31, 2025; (2) 59,689 uncommenced square feet expiring April 30, 2027; and (3) 93,028 commenced square feet expiring on October 31, 2028.

16

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

OFFICE PORTFOLIO LEASING ACTIVITY

Total Gross Leasing Activity
Rentable square feet	416,948
Number of leases	19
Gross New Leasing Activity
Rentable square feet	380,118
New cash rate	$	49.83
Number of leases	8
Gross Renewal Leasing Activity
Rentable square feet	36,830
Renewal cash rate	$	38.39
Number of leases	11
Net Absorption
Leased rentable square feet	349,464
Cash Rent Growth(1)
Expiring Rate	$	33.68
New/Renewal Rate	$	41.08
Change	22.0		%
Straight-Line Rent Growth(2)
Expiring Rate	$	31.28
New/Renewal Rate	$	40.39
Change	29.1		%
Weighted Average Lease Terms
New (in months)	161
Renewal (in months)	64

Tenant Improvements and Leasing Commissions(3)	Total Lease Transaction Costs Per Square Foot	Annual Lease Transaction Costs Per Square Foot
New leases	$93.45	$6.96
Renewal leases	$21.29	$3.97
Blended	$87.08	$6.85

______________________________

(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.

17

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

OFFICE LEASE EXPIRATIONS — ANNUAL

Year of Lease Expiration	Square Footage of Expiring Leases(1)	Percent of Office Portfolio Square Feet		Annualized Base Rent(2)		Percentage of Office Portfolio Annualized Base Rent		Annualized Base Rent Per Square Foot(3)		Annualized Base Rent Per Square Foot at Expiration(4)
Available	311,164	5.9	%	$	—	—	%	$	—	$	—
2013	208,299	3.9		4,575,746		2.8		21.97		21.97
2014	126,641	2.4		4,720,012		2.9		37.27		37.63
2015	292,003	5.5		4,866,628		3.0		16.67		17.78
2016	392,965	7.4		12,603,744		7.7		32.07		34.13
2017	779,768	14.7		25,817,251		15.8		33.11		34.76
2018	355,407	6.7		9,357,304		5.8		26.33		29.27
2019	605,078	11.4		20,445,039		12.6		33.79		38.84
2020	374,889	7.1		14,228,925		8.7		37.96		45.54
2021	358,091	6.8		11,474,952		7.0		32.04		37.82
2022	18,906	0.4		703,015		0.4		37.18		41.19
Thereafter	835,279	15.8		24,501,961		15.0		29.33		38.63
Building management use	21,364	0.4		—		—		—		—
Signed leases not commenced(5)	612,970	11.6		29,736,474		18.3		48.51		68.51
Total/Weighted Average	5,292,824	100.0	%	$	163,031,051	100.0	%	$	32.73	$	39.07

______________________________

(1) Please see footnote (2) on page 16 of this Supplemental Operating and Financial Data report for an explanation of the re-leasing status of 152,373 square feet currently leased to Bank of America scheduled to expire on December 31, 2013 at our 1455 Market property.

(2) Rent data for our office properties is presented on an annualized basis without regard to cancellation options (with the exception of the Bank of America lease at our 1455 Market property, which is assumed to exercise all early termination options). Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) as of December 31, 2013, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(3) Annualized base rent per square foot for all lease expiration years and building management use is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases, divided by (ii) square footage under commenced leases as of December 31, 2013.

(4) Annualized base rent per square foot at expiration for all lease expiration years and building management use is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases, divided by (ii) square footage under commenced lease as of December 31, 2013.

(5) Annualized base rent per leased square foot and annualized best rent per square foot at expiration for signed leases not commenced, reflects uncommenced leases and is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under uncommenced leases for vacant space as of December 31, 2013, divided by (ii) square footage under uncommenced leases as of December 31, 2013.

18

Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

QUARTERLY OFFICE LEASE EXPIRATIONS — NEXT FOUR QUARTERS

	Q1 2014			Q2 2014			Q3 2014			Q4 2014
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)
Seattle
First & King	1,334	$	4.50	—	$	—	—	$	—	—	$	—
Met Park North	—	—		—	—		—	—		—	—
Northview	—	—		—	—		—	—		4,015	18.43
Subtotal	1,334	$	4.50	—	$	—	—	$	—	4,015	$	18.43
San Francisco
Rincon Center	9,497	$	44.27	16,255	$	26.19	14,685	$	42.51	2,130	$	22.00
1455 Market Street	1,511	32.07		—	—		—	—		1,500	37.97
875 Howard Street	—	—		—	—		—	—		—	—
222 Kearny Street	—	—		7,844	34.52		3,613	31.56		1,271	38.00
625 Second Street	—	—		—	—		—	—		—	—
275 Brannan Street	—	—		—	—		—	—		—	—
901 Market Street	—	—		—	—		3,010	21.00		—	—
Subtotal	11,008	$	42.59	24,099	$	28.90	21,308	$	37.61	4,901	$	31.04
Los Angeles
First Financial	—	$	—	3,318	$	32.75	908	$	24.60	3,418	$	33.14
Technicolor Building	—	—		—	—		—	—		—	—
Del Amo Office Building	—	—		—	—		—	—		—	—
9300 Wilshire	3,155	35.10		1,410	39.93		3,472	38.19		—	—
10950 Washington	—	—		—	—		—	—		—	—
604 Arizona	—	—		—	—		—	—		—	—
6922 Hollywood	2,115	82.80		—	—		—	—		4,684	74.37
10900 Washington	—	—		—	—		—	—		—	—
Element LA	—	—		—	—		—	—		—	—
Pinnacle I	—	—		4,040	45.73		—	—		28,129	42.68
Pinnacle II	—	—		—	—		—	—		—	—
3401 Exposition	—	—		—	—		—	—		—	—
1861 Bundy	—	—		—	—		—	—		—	—
Subtotal	5,270	$	54.24	8,768	$	39.89	4,380	$	35.37	36,231	$	45.88
San Diego
Tierrasanta	—	$	—	5,327	$	12.83	—	$	—	—	$	—
Subtotal	—	$	—	5,327	$	12.83	—	$	—	—	$	—
TOTAL	17,612	$	43.19	38,194	$	29.18	25,688	$	37.23	45,147	$	41.83

______________________________

(1) Rent data for our office properties is presented on an annualized basis without regard to cancellation options (with the exception of the Bank of America lease at our 1455 Market property, which is assumed to exercise all early termination options). Annualized base rent for office properties is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) as of December 31, 2013, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

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Hudson Pacific Properties, Inc.

Fourth Quarter 2013 Supplemental Operating and Financial Data

OFFICE PORTFOLIO DIVERSIFICATION

	Total	Annualized Rent as
Industry	Square Feet(1)	of Percent of Total
Business Services	79,001	1.4	%
Educational	133,814	3.6
Financial Services	799,530	10.9
Insurance	140,564	4.6
Legal	81,279	2.0
Media & Entertainment	1,016,616	29.1
Other	168,249	2.7
Real Estate	62,437	1.7
Retail	407,703	8.1
Technology	1,045,826	25.7
Advertising	113,000	2.3
Government	283,612	7.0
Healthcare	37,059	0.9
TOTAL	4,368,690	100.0	%

______________________________

(1) Does not include signed leases not commenced.

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Hudson Pacific Properties, Inc.

Fourth Quarter 2013 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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