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 4, 2017

_________________________________

Hudson Pacific Properties, Inc.

(Exact name of registrant as specified in its charter)

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

11601 Wilshire Blvd., Ninth 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 May 4, 2017, 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, 2017. A copy of the press release is furnished herewith as Exhibit 99.1, which is incorporated herein by reference.

Also on May 4, 2017, we made available on our Website (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, 2017 and made available on our Website certain supplemental information relating to our financial results for the quarter ended March 31, 2017.

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 4, 2017 regarding the Company’s financial results for the quarter ended March 31, 2017.
99.2**	Supplemental Operating and Financial Data for the quarter ended March 31, 2017.

_____________

**     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 4, 2017	By:	/s/ Mark T. Lammas
			Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit No.	Description
99.1**	Press release dated May 4, 2017 regarding the Company’s financial results for the quarter ended March 31, 2017.
99.2**	Supplemental Operating and Financial Data for the quarter ended March 31, 2017.

_____________

**     Furnished herewith.

EX-99.1

Hudson Pacific Properties Reports Strong First Quarter2017 Financial Results

Over 525,000 Square Feet of Leases Executed at 63% GAAP and 42% Cash Rent Spreads

Los Angeles, CA, May 4, 2017—Hudson Pacific Properties, Inc. (the “Company,” or “Hudson Pacific”) (NYSE: HPP) today announced financial results for the first quarter ended March 31, 2017.

First Quarter Highlights

• Net income attributable to common stockholders of $20.5 million, or $0.14 per diluted share, compared to net income of $2.3 million, or $0.03 per diluted share, a year ago;

• FFO, excluding specified items, of $71.9 million, or $0.48 per diluted share, compared to $63.2 million, or $0.43 per diluted share, a year ago;

• Executed new and renewal leases totaling 525,084 square feet, consisting of 352,596 square feet of new leases and 172,488 square feet of renewal leases with GAAP and cash rent growth of 62.6% and 42.1%, respectively, including a 10-year lease with Google, Inc. for 166,460 square feet at Rincon Center;

• Improved in-service office portfolio leased rate to 91.2% as of March 31, 2017, up from 90.7% a year ago;

• Completed public offering of 9,775,000 shares of common stock generating total net proceeds of $337.8 million after underwriting discounts and before other transaction costs;

• Announced the acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios) in Hollywood, which closed on May 1, 2017;

• Sold 222 Kearny Street in San Francisco for $51.8 million before credits, prorations, and closing costs;

• Sold 3402 Pico Boulevard in Santa Monica for $35.0 million before credits, prorations, and closing costs; and

• Declared and paid a quarterly dividend of $0.25 per share on common stock, a 25% increase from the previous annualized dividend level.

“We are very pleased with first quarter results,” said Victor Coleman, Hudson Pacific Properties’ Chairman and CEO. “During the quarter, we executed more than 525,000 square feet of leases, with cash rent spreads of 42%, including a 166,000 square foot lease with Google, Inc. at our Rincon Center property in San Francisco. The high level of leasing activity to start the year demonstrates just how strong demand remains throughout our core markets.”

Coleman continued, “We completed a public offering of 9,775,000 shares of common stock generating net proceeds of $337.8 million. The transaction was used largely to repay amounts outstanding under credit facility in anticipation of redrawing amounts to complete the purchase of Hollywood Center Studios or, as we’ve recently rebranded it, Sunset Las Palmas Studios. The addition of Sunset Las Palmas means Hudson Pacific is now the largest, independent owner-operator of sound stages in the U.S. We are pleased to welcome Sunset Las Palmas to our Sunset Studios family and we deeply appreciate the strong interest in our recent equity offering from both existing and new investors in support of this acquisition, the Company and its continued growth.”

Financial Results

The Company reported net income attributable to common stockholders of $20.5 million, or $0.14 per diluted share, for the three months ended March 31, 2017, compared to net income attributable to common stockholders of $2.3 million, or $0.03 per diluted share, for the three months ended March 31, 2016.

Funds From Operations (FFO), excluding specified items, for the three months ended March 31, 2017 totaled $71.9 million, or $0.48 per diluted share, compared to FFO, excluding specified items, of $63.2 million, or $0.43 per diluted share, a year ago. There were no specified items for the first quarter of either 2017 or 2016.

FFO, including specified items, for the three months ended March 31, 2017 totaled $71.9 million, or $0.48 per diluted share, compared to $63.2 million, or $0.43 per diluted share, a year ago.

Consolidated Operating Results For The Three Months Ended March 31, 2017

Total revenue during the first quarter increased 9.6% to $168.3 million from $153.5 million for the same quarter a year ago. Total operating expenses decreased 3.9% to $139.8 million from $134.5 million for the same quarter a year ago. As a result, income from operations increased 49.9% to $28.5 million from $19.0 million for the same quarter a year ago. The primary reasons for the changes in total revenue and operating expenses are discussed below in connection with the Company’s segment operating results.

Interest expense during the first quarter increased 27.1% to $21.9 million from $17.3 million for the same quarter a year ago. The Company had $2.4 billion and $2.1 billion of notes payable, excluding net deferred financing costs and net loan premium, at March 31, 2017 and March 31, 2016, respectively.

The Company had $6.0 thousand of unrealized gain on the ineffective portion of derivative instruments during the first quarter of 2017 compared to $2.1 million of unrealized loss on the ineffective portion of derivative instruments during the first quarter of 2016.

The Company also had $16.9 million of gain on sale associated with the dispositions of 222 Kearny Street and 3402 Pico Boulevard during the first quarter of 2017 compared to $6.4 million of gain on sale associated with the disposition of Bayhill Office Center during the first quarter of 2016.

Segment Operating Results For The Three Months Ended March 31, 2017

Office Properties

Total revenue at the Company’s office properties increased 10.2% to $156.8 million from $142.3 million for the same quarter a year ago. The increase was primarily the result of a $17.3 million increase in rental revenue to $133.5 million, offset by a $3.1 million decrease in tenant recoveries to $17.4 million. The increase in rental revenue largely resulted from the commencement of the lease with Netflix at the Company’s ICON property, together with rental revenue associated with the acquisitions of 11601 Wilshire Boulevard (purchased in July 2016), Hill7 (purchased in October 2016) and Page Mill Hill (purchased in December 2016). The increase was partially offset by the dispositions of Bayhill Office Center (sold in January 2016), One Bay Plaza (sold in June 2016), and 222 Kearny Street (sold in February 2017). The decrease in tenant recoveries is largely due to a recovery adjustment following the favorable property tax reassessments of 1455 Market Street, Clocktower Square and Rincon Center.

Office property operating expenses increased 0.5% to $48.0 million from $47.7 million for the same quarter a year ago. The increase primarily resulted from the aforementioned acquisitions, partially offset by the Rincon property tax assessment and the sales of Bayhill Office Center, One Bay Plaza and 222 Kearny Street.

Net operating income with respect to the Company’s 34 same-store office properties for the first quarter increased 5.4% on a GAAP basis and 23.4% on a cash basis. The cash basis net operating income increase includes Cisco’s payment of $10.4 million in early lease termination fees, which was offset by the September 1, 2016 commencement of a rent and square footage reduction with Weil, Gotshal & Manges at Towers at Shore Center under a lease amendment entered into on December 18, 2014, prior to the Company’s acquisition of that property from Blackstone. The Company estimates that first quarter cash basis net operating income generated by its 34 same-store office properties would have increased approximately 13.2% without Cisco’s early lease termination payment and the impact of the lease with Weil, Gotshal & Manges LLP in both periods.

At March 31, 2017, the Company’s stabilized and in-service office portfolio was 96.4% and 91.2% leased, respectively. During the quarter, the Company executed 59 new and renewal leases totaling 525,084 square feet.

Media and Entertainment Properties

Total revenue at the Company’s media and entertainment properties increased 2.0% to $11.5 million from $11.2 million for the same quarter a year ago, largely due to a $0.7 million increase in rental revenue to $6.7 million and a $0.5 million increase in tenant recoveries to $0.7 million. That increase was partially offset by a $0.9 million decrease in other property-related revenue to $4.0 million. The increase in rental revenue largely resulted from higher occupancy at Sunset Gower and Sunset Bronson. The increase in tenant recoveries largely stemmed from higher recoveries for current and prior year expenses attributable to KTLA at Sunset Bronson. The decrease in other property-related revenue reflects unusually high production activity by a stage user in the first quarter of 2016, which normalized in the most recently completed quarter, as well as the use by Netflix of a stage for storage purposes in connection with its move into ICON over the most recent quarter. Total media and entertainment operating expenses increased 21.8% to $7.3 million from $6.0 million for the same quarter a year ago, largely due to higher occupancy at Sunset Gower and Sunset Bronson and expense savings associated with a property tax reassessment in 2016.

As of March 31, 2017, the trailing 12-month occupancy for the Company’s media and entertainment portfolio increased to 90.3% from 81.6% for the period ended March 31, 2016.

Balance Sheet

At March 31, 2017, the Company had total assets of $6.7 billion, including unrestricted cash and cash equivalents of $115.7 million. At March 31, 2017, the Company had $400.0 million of undrawn total capacity under its unsecured revolving credit facility.

Major Leasing

Executed Significant Bay Area Lease

Google, Inc. signed a 10-year lease for 166,460 square feet at Rincon Center in San Francisco, California. The lease is anticipated to commence in March 2018 and will backfill two of Hudson Pacific’s significant 2017 expirations: a 132,600-square-foot lease with AIG and a 22,000-square-foot lease with global law firm Dentons. The deal increased Google, Inc.’s total leased square footage within the Company’s portfolio to 472,189 square feet.

Campus Center Repositioning

On March 24, 2017, the Company announced the launch of a significant capital plan to reposition its 471,580-square-foot Campus Center asset in Milpitas, California. Construction will begin in January 2018 immediately following the lease expiration of Campus Center’s existing tenant, Cisco Systems. Cisco Systems had previously indicated it would opt out of its lease at the end of 2017 and provided formal notice of its intention to leave. The repositioning will include several of the Company’s signature improvements: entrance and lobby renovations; over 100,000 square feet of contemporary, market-ready office space; master planned landscaping; and enhanced outdoor recreation areas, including dedicated sporting areas, patios, collaborative seating and direct hiking trail access.

Dispositions

Sold 222 Kearny Street

On February 14, 2017, the Company sold 222 Kearny Street in San Francisco, California for $51.8 million before credits, prorations and closing costs. The Company sold the 148,797-square-foot office property for nearly a 40% premium to its basis.

Sold Redevelopment and Related Land at 3402 Pico Boulevard

On March 21, 2017, the Company sold 3402 Pico Boulevard in Santa Monica, California for $35.0 million before credits, prorations and closing costs. The Company sold the vacant 50,687-square-foot office redevelopment and related development land for a 13% premium to its basis.

Equity Offerings

Blackstone/Farallon Funds Offering

On January 10, 2017, the Company completed a public offering of 18,673,808 shares of its common stock, consisting of 8,881,575 shares offered by the Company, 8,626,311 shares offered by certain entities affiliated with The Blackstone Group L.P. (collectively, “Blackstone”) and 1,165,922 shares offered by certain funds affiliated with Farallon Capital Management, L.L.C. (collectively, the “Farallon Funds”). The Company used the approximately $312.2 million of gross proceeds, before deducting estimated underwriting discounts and estimated offering expenses, to acquire an aggregate of 8,598,480 common units of limited partnership interest in its operating partnership, Hudson Pacific Properties, L.P. (the “Operating Partnership”), from Blackstone and 283,095 common units of limited partnership interest in the Operating Partnership from the Farallon Funds. The Company did not receive any proceeds from the offering by Blackstone and the Farallon Funds. Following the offering, Blackstone and the Farallon Funds have informed the Company that they no longer hold any ownership interests in the Company or the Operating Partnership.

Company Common Stock Public Offering

On March 3, 2017, the Company completed a public offering of 9,775,000 shares of its common stock, including 1,275,000 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 $36.00 per share. Net proceeds from the offering, after deducting underwriting discounts and before other transaction costs, were approximately $337.8 million. The Company used a portion of the net proceeds to fully repay a $255.0 million balance outstanding under its unsecured revolving credit facility, with the remaining proceeds used for general corporate purposes. Subsequent to March 31, 2017, the Company re-borrowed amounts under its credit facility to complete the acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios) in Hollywood, which closed on May 1, 2017.

Dividend

Paid Common Dividend

The Company’s Board of Directors declared a dividend on its common stock of $0.25 per share for the first quarter of 2017, equivalent to an annual rate of $1.00 per share and a 25% increase from the previous annualized dividend of $0.80 per share. The dividends were paid on March 30, 2017 to stockholders of record on March 20, 2017.

Activities Subsequent to March 31, 2017

Acquisition

Purchased Sunset Las Palmas Studios (formerly Hollywood Center Studios)

On May 1, 2017, the Company completed its acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios) in Hollywood, California, a 369,000-square-foot media and entertainment campus with future development rights for $200.0 million before credits, prorations and closing costs. Located at 1040 North Las Palmas Avenue, Sunset Las Palmas Studios consists of 13 stages, production offices and support space on 15 acres near Hudson Pacific’s Sunset Gower and Sunset Bronson Studios.

2017 Outlook

Guidance Increased

The Company is increasing its full-year 2017 FFO guidance from its previously announced range of $1.90 to $2.00 per diluted share, excluding specified items, to a revised range of $1.92 to $2.02 per diluted share, excluding specified items. The guidance reflects the Company’s FFO for the first quarter ended March 31, 2017 of $0.48 per diluted share, excluding specified items, as well as the transactional activity referenced in this press release and in earlier announcements. While Cisco remains obligated to pay rent at our Campus Center property through the remainder of the current year, in addition to receiving that rent this guidance also includes the amortization beginning with the second quarter of this year of approximately $1.5 million per quarter of income. This reflects Cisco’s payment of $10.4 million in termination fees, reduced for GAAP purposes by the write-off of approximately $5.9 million of non-cash items (i.e., straight-line rent receivable and above/below-market rent lease adjustment) associated with the early termination. The full-year 2017 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 press release, but otherwise excludes any impact from future unannounced or speculative acquisitions, dispositions, debt financings or repayments, recapitalizations, capital market activity or similar matters. There can be no assurance that the actual results will not differ materially from this estimate.

Below are some of the assumptions we used in providing this guidance (dollars in thousands):

Metric	Low	High
Growth in Same-Store Office Property Cash NOI(1)(2)(3)	6.5%	7.5%
Growth in Same-Store Media and Entertainment Property Cash NOI(1)(2)	5.9%	6.9%
GAAP Non-Cash Revenue (Straight-Line Rent and Above/Below-Market Rents)(4)	$44,000	$54,000
GAAP Non-Cash Expense (Above/Below-Market Ground Rent)	$(3,200)	$(3,200)
General and Administrative Expenses(5)	$(52,000)	$(57,000)
Interest Expense, net(6)	$(89,000)	$(92,000)
FFO Attributable to Non-controlling Interests	$(22,500)	$(24,500)
Weighted Average Common Stock/Units Outstanding—Diluted(7)	155,000,000	156,000,000

(1) Same-Store is defined as the 34 office properties or two media and entertainment properties, as applicable, owned and included in our stabilized portfolio as of January 1, 2016 and anticipated to still be owned and included in the stabilized portfolio through December 31, 2017.

(2) Please see non-GAAP information below for definition of Cash NOI.

(3) This estimate excludes the $10.4 million early lease termination fee payed by Cisco and the impact of the lease with Weil, Gotshal & Manges LLP at Towers at Shore Center in both periods. Effective September 1, 2016, the rent and square footage with Weil, Gotshal & Manges LLP was reduced under a lease amendment entered into on December 18, 2014, prior to the Company’s acquisition of that property from Blackstone. We estimate that Same-Store Office Property Cash NOI growth, including Cisco’s early lease termination payment and the impact of the Weil, Gotshal & Manges LLP lease in both periods, would range from 7.8% to 8.8%.

(4) Includes non-cash straight-line rent associated with the media and entertainment properties.

(5) Includes non-cash compensation expense, which we estimate at $16,000 in 2017.

(6) Includes amortization of deferred financing costs and loan premiums, which we estimate at $5,100 in 2017.

(7) Diluted shares represent ownership in our Company through shares of common stock, OP Units and other convertible or exchangeable instruments. The weighted average fully diluted common stocks/units outstanding for 2017 includes an estimate for dilution impact of stock grants to our executives under our 2015, 2016 and 2017 outperformance programs and performance-based awards under our special one-time award grants based on the projected award potential of such programs as of the end of such periods, as calculated in accordance with the Accounting Standards Codification 260 Earnings Per Share.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information under “2017 Outlook” above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the

inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, the most directly comparable forward-looking GAAP financial measure, including, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding the Company’s first quarter 2017 results may be found in the Investor Relations section of the Company’s Website at investors.hudsonpacificproperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property, and debt maturity schedules.

Conference Call

The Company will hold a conference call to discuss first quarter 2017 financial results at 11:00 a.m. PT / 2:00 p.m. ET on May 4, 2017. To participate in the call by telephone, please dial (877) 407-0784 five to 10 minutes prior to the start time to allow time for registration. International callers should dial (201) 689-8560. The call will also be broadcast live over the Internet and can be accessed via the Investor Relations section of the Company’s Website at investors.hudsonpacificproperties.com, where a replay of the call will be available for 90 days. A replay will also be available beginning May 4, 2017 at 2:00 p.m. PT / 5:00 p.m. ET, through May 11, 2017 at 8:59 p.m. PT / 11:59 p.m. ET, by dialing (844) 512-2921 and entering the passcode 13658789. International callers should dial (412) 317-6671 and enter the same passcode.

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, plus 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 the Company’s 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 the Company’s 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.

Cash Net Operating Income (NOI):

We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any,

and property-level general and administrative expenses). NOI on a cash basis is NOI on a GAAP basis, adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

About Hudson Pacific Properties

Hudson Pacific Properties is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in select West Coast markets. Hudson Pacificinvests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. Founded in 2006 as Hudson Capital, the Company went public in 2010, electing to be taxed as a real estate investment trust. Through the years, Hudson Pacific has strategically assembled a portfolio totaling over 17 million square feet, including land for development, in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company is a leading provider of design-forward, next-generation workspaces for a variety of tenants, with a focus on Fortune 500 and industry-leading growth companies, many in the technology, media and entertainment sectors. As a long-term owner, Hudson Pacific prioritizes tenant satisfaction and retention, providing highly customized build-outs and working proactively to accommodate tenants’ growth. Hudson Pacific trades as a component of the Russell 2000® and the Russell 3000® indices. For more information visit hudsonpacificproperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” or “potential” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company’s control 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, 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, 2016 filed with the Securities and Exchange Commission, or SEC, on February 21, 2017, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

Investor/Media Contacts:

Hudson Pacific Properties, Inc.

Laura Campbell

Vice President, Head of Investor Relations

(310) 445-5700

lcampbell@hudsonppi.com

or

Greg Berardi

Blue Marlin Partners

(415) 239-7826

greg@bluemarlinpartners.com

(FINANCIAL TABLES FOLLOW)

Hudson Pacific Properties, Inc. Consolidated Balance Sheets (Unaudited, in thousands, except share data)
	March 31, 2017			December 31, 2016
ASSETS
REAL ESTATE ASSETS
Land	$	1,265,399		$	1,265,399
Building and improvements	4,628,355			4,502,235
Tenant improvements	393,525			373,778
Furniture and fixtures	4,231			4,276
Property under development	216,499			295,239
Total real estate held for investment	6,508,009			6,440,927
Accumulated depreciation and amortization	(463,882		)	(419,368		)
Investment in real estate, net	6,044,127			6,021,559
Cash and cash equivalents	115,690			83,015
Restricted cash	18,000			25,177
Accounts receivable, net	2,009			6,852
Straight-line rent receivables, net	84,850			87,281
Deferred leasing costs and lease intangible assets, net	296,645			309,962
Derivative assets	8,558			5,935
Goodwill	8,754			8,754
Prepaid expenses and other assets, net	84,582			27,153
Investment in unconsolidated entities	38,546			37,228
Assets associated with real estate held for sale	—			66,082
TOTAL ASSETS	$	6,701,761		$	6,678,998
LIABILITIES AND EQUITY
Notes payable, net	$	2,388,388		$	2,688,010
Accounts payable and accrued liabilities	135,198			120,444
Lease intangible liabilities, net	73,033			80,130
Security deposits	33,019			31,495
Prepaid rent	34,779			40,755
Derivative liabilities	967			1,303
Liabilities associated with real estate held for sale	—			3,934
TOTAL LIABILITIES	2,665,384			2,966,071
6.25% Series A cumulative redeemable preferred units of the operating partnership	10,177			10,177
EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Common stock, $0.01 par value, 490,000,000 authorized, 155,279,629 shares and 136,492,235 shares outstanding at March 31, 2017 and December 31, 2016, respectively	1,553			1,364
Additional paid-in capital	3,691,819			3,109,394
Accumulated other comprehensive income	8,710			9,496
Accumulated income (deficit)	3,784			(16,971		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	3,705,866			3,103,283
Non-controlling interest—members in consolidated entities	307,438			304,608
Non-controlling interest—units in the operating partnership	12,896			294,859
TOTAL EQUITY	4,026,200			3,702,750
TOTAL LIABILITIES AND EQUITY	$	6,701,761		$	6,678,998

Hudson Pacific Properties, Inc.

Consolidated Statements of Operations

(Unaudited, in thousands, except share data)

	Three Months Ended March 31,
	2017			2016
REVENUES
Office
Rental	$	133,516		$	116,227
Tenant recoveries	17,401			20,533
Parking and other	5,899			5,532
Total office revenues	156,816			142,292
Media & Entertainment
Rental	6,685			6,028
Tenant recoveries	665			199
Other property-related revenue	4,042			4,969
Other	77			49
Total Media & Entertainment revenues	11,469			11,245
TOTAL REVENUES	168,285			153,537
OPERATING EXPENSES
Office operating expenses	47,954			47,703
Media & Entertainment operating expenses	7,251			5,952
General and administrative	13,810			12,503
Depreciation and amortization	70,767			68,368
TOTAL OPERATING EXPENSES	139,782			134,526
INCOME FROM OPERATIONS	28,503			19,011
OTHER EXPENSE (INCOME)
Interest expense	21,930			17,251
Interest income	(30		)	(13		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Other (income) expense	(678		)	24
TOTAL OTHER EXPENSES	21,216			19,387
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE	7,287			(376		)
Gains on sale of real estate	16,866			6,352
NET INCOME	24,153			5,976
Net income attributable to preferred units	(159		)	(159		)
Net income attributable to participating securities	(240		)	(197		)
Net income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Net income attributable to units in the operating partnership	(202		)	(1,422		)
Net income attributable to Hudson Pacific Properties, Inc. common stockholders	$	20,515		$	2,253
Basic and diluted per share amounts:
Net income attributable to common stockholders—basic	$	0.14		$	0.03
Net income attributable to common stockholders—diluted	$	0.14		$	0.03
Weighted average shares of common stock outstanding—basic	147,950,594			89,190,803
Weighted average shares of common stock outstanding—diluted	149,950,346			89,597,803
Dividends declared per share of common stock	$	0.250		$	0.200

Hudson Pacific Properties, Inc.

Funds From Operations

(Unaudited, in thousands, except per share data)

	Three Months Ended March 31,
	2017			2016
Reconciliation of net income to Funds From Operations (“FFO”):
Net income	$	24,153		$	5,976
Adjustments:
Depreciation and amortization of real estate assets	70,294			67,905
Gains on sale of real estate	(16,866		)	(6,352		)
FFO attributable to non-controlling interests	(5,507		)	(4,162		)
Net income attributable to preferred units	(159		)	(159		)
FFO to common stockholders and unitholders	71,915			63,208
Weighted average common stock/units outstanding—diluted	150,335			145,894
FFO per common stock/unit—diluted	$	0.48		$	0.43
FFO (excluding specified items) per common stock/unit—diluted	$	0.48		$	0.43

Hudson Pacific Properties, Inc.

Net Operating Income

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
Reconciliation of net income to Net Operating Income (“NOI”):
Net income	$	24,153		$	5,976
Adjustments:
Interest expense	21,930			17,251
Interest income	(30		)	(13		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Other (income) expense	(678		)	24
Gains on sale of real estate	(16,866		)	(6,352		)
Income from operations	28,503			19,011
Adjustments:
General and administrative	13,810			12,503
Depreciation and amortization	70,767			68,368
NOI	$	113,080		$	99,882

EX-99.2

HUDSON PACIFIC PROPERTIES, INC.

FIRST QUARTER2017

Supplemental Operating and Financial Information

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; and the consequences of any possible future terrorist attacks. These factors are not exhaustive. 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, 2016 filed with the Securities and Exchange Commission on February 21, 2017 and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission. 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.

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

TABLE OF CONTENTS

	Page
COMPANY BACKGROUND, RESEARCH COVERAGE AND CORPORATE DATA	3
CONSOLIDATED FINANCIAL RESULTS	6
Consolidated Balance Sheets	7
Consolidated Statements of Operations	8
Funds from Operations	9
Adjusted Funds from Operations	10
Debt Summary	11
PORTFOLIO DATA	14
In-Service Office Portfolio by Property	15
In-Service Office Portfolio Summary	17
Redevelopment, Development and Held-For-Sale Office Summary	18
Land Properties Summary	19
Media & Entertainment Portfolio Summary	20
Current Value Creation Development Projects	21
Same-Store Analysis	23
Reconciliation of GAAP Net Income to Net Operating Income	25
Net Operating Income Detail	26
Office Portfolio Leasing Activity	27
Office Portfolio Commenced Leases with Non-Recurring, Up-Front Abatements	28
Quarterly Uncommenced / Backfill—Next Eight Quarters	29
Quarterly Office Lease Expirations—Next Eight Quarters	31
Office Lease Expirations—Annual	33
Fifteen Largest Office Tenants	34
Office Portfolio Diversification	35
DEFINITIONS	36

2

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

COMPANY BACKGROUND

CORPORATE 11601 Wilshire Boulevard, Ninth Floor, Los Angeles, California 90025 (310) 445-5700 www.hudsonpacificproperties.com
BOARD OF DIRECTORS
Victor J. Coleman		Theodore R. Antenucci	Frank Cohen
Chairman of the Board, Chief Executive Officer and President, Hudson Pacific Properties, Inc.		President and Chief Executive Officer, Catellus Development Corporation	Senior Managing Director, Blackstone Group, L.P.
Richard B. Fried		Jonathan M. Glaser	Robert L. Harris II
Managing Member, Farallon Capital Management, L.L.C.		Managing Member, JMG Capital Management LLC	Executive Chairman (retired), Acacia Research Corporation
Mark D. Linehan		Robert M. Moran, Jr.	Michael Nash
President and Chief Executive Officer, Wynmark Company		Co-founder and Co-owner, FJM Investments LLC	Senior Managing Director, Blackstone Group, L.P., Chief Investment Officer, Blackstone Real Estate Debt Strategies
		Barry A. Porter
		Managing General Partner, Clarity Partners L.P.
EXECUTIVE AND SENIOR MANAGEMENT
Victor J. Coleman		Mark T. Lammas	Christopher Barton
Chief Executive Officer and President		Chief Operating Officer, Chief Financial Officer and Treasurer	EVP, Development and Capital Investments
Alexander Vouvalides		Dale Shimoda	Kay L. Tidwell
Chief Investment Officer		EVP, Finance	EVP, General Counsel and Secretary
Arthur X. Suazo		Harout Diramerian	Steve Jaffe
EVP, Leasing		Chief Accounting Officer	Chief Risk Officer
Josh Hatfield		Drew Gordon	Gary Hansel
EVP, Operations		SVP, Northern California	SVP, Southern California
David Tye		Derric Dubourdieu	Elva Hernandez
SVP, Pacific Northwest		SVP, Leasing	VP, Controller
INVESTOR RELATIONS
	Laura Campbell VP, Head of Investor Relations lcampbell@hudsonppi.com

3

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

RESEARCH COVERAGE
EQUITY RESEARCH COVERAGE
James Feldman	Barry Oxford	Alexander Goldfarb
Bank of America Merrill Lynch	D.A. Davidson	Sandler O'Neill + Partners
(646) 855-5808	(212) 240-9871	(212) 466-7937
Ross Smotrich	Craig Mailman	Nick Yulico
Barclay Capital	KeyBanc Capital Markets	UBS Investment Bank
(212) 526-2306	(917) 368-2316	(212) 713-3402
Tom Catherwood	Richard Anderson	Blaine Heck
BTIG	Mizuho Securities	Wells Fargo Securities
(212) 738-6140	(212) 205-8445	(443) 263-6516
David Rodgers		Vikram Malhotra
Robert W. Baird & Company		Morgan Stanley
(216) 737-7341		(212) 761-7567
RATING AGENCIES
Stephen Boyd	Alice Chung	Fernanda Hernandez
Fitch Ratings	Moody’s Investor Service	Standard & Poor’s
(212) 908-9153	(212) 553-2949	(212) 438-1347

4

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

CORPORATE DATA

(Unaudited, in thousands, except number of properties, square feet and per share data)

Hudson Pacific Properties, Inc. (NYSE: HPP) (also referred to herein as the “Company,” “we,” “us,” or “our”) is a vertically integrated real estate company focused on acquiring, repositioning, developing and operating high-quality office and state-of-the-art media and entertainment properties in high-growth, high-barrier-to-entry submarkets throughout Northern and Southern California and the Pacific Northwest. The Company invests across the risk-return spectrum, favoring opportunities where it can employ leasing, capital investment and management expertise to create additional value. This Supplemental Operating and Financial Data supplements the information provided in our reports filed with the Securities and Exchange Commission. We maintain a Website at www.hudsonpacificproperties.com.

	March 31, 2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Number of office properties owned	52			54			52			51			53
Office properties square feet(1)	13,887,405			14,084,405			13,714,851			13,214,376			13,480,616
Stabilized office properties leased rate as of end of period(2)	96.4		%	96.4		%	96.5		%	96.5		%	95.8		%
In-Service office properties leased rate as of end of period(3)	91.2		%	91.2		%	90.7		%	91.1		%	90.7		%
Number of Media & Entertainment properties owned	2			2			2			2			2
Media & Entertainment square feet(1)	879,652			879,652			879,652			879,652			879,652
Media & Entertainment leased rate as of end of period(4)	90.3		%	89.1		%	87.1		%	85.3		%	81.6		%
Number of land assets owned	6			7			8			8			8
Land assets estimated square feet(5)	2,539,562			2,539,562			2,638,875			2,638,875			2,638,875
Market capitalization (in thousands):
Total debt(6)	$	2,407,196		$	2,707,839		$	2,427,440		$	2,358,029		$	2,097,539
Series A Preferred Units	$	10,177		$	10,177		$	10,177		$	10,177		$	10,177
Common equity capitalization(7)	$	5,466,098		$	5,149,111		$	4,861,070		$	4,300,917		$	4,249,186
Total market capitalization	$	7,883,471		$	7,867,127		$	7,298,687		$	6,669,123		$	6,356,902
Debt/total market capitalization	30.5		%	34.4		%	33.3		%	35.4		%	33.0		%
Series A preferred units & debt/total market capitalization	30.7		%	34.5		%	33.4		%	35.5		%	33.2		%
Common stock data (NYSE:HPP):
Range of closing prices(8)	$ 33.75 - 36.65			$ 31.99 - 35.27			$ 34.33 - 29.03			$ 30.05 - 27.16			$ 22.97 - 29.35
Closing price at quarter end	$	34.64		$	34.78		$	32.87		$	29.18		$	28.92
Weighted average fully diluted common stock/units outstanding (in thousands)(9)	150,335			146,955			146,793			146,399			145,894
Shares of common stock\units outstanding at end of period (in thousands)(10)	157,797			148,048			147,888			147,393			146,522

__________________________

(1) Square footage for 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 re-measurement or re-leasing.

(2) Stabilized office properties leased rate excludes the lease-up properties, redevelopment, development, properties held-for-sale, and land properties described on pages 16, 18 and 19.

(3) In-service office properties leased rate includes the stabilized office properties and lease-up properties described on pages 15 and 16.

(4) Percent occupied for Media and Entertainment properties is the average percent leased for the 12 months ended as of the quarter indicated.

(5) 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.

(6) Total debt excludes unamortized non-cash loan premium and deferred financing costs. The full amount of debt related to the Pinnacle I & II joint venture and Hill7 joint venture is included.

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

(8) For the quarter indicated.

(9) For the quarter indicated, diluted shares represent ownership in our Company through shares of common stock, OP units and other convertible or exchangeable instruments. The weighted average fully diluted common stock/units outstanding for the three-month periods ending March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016 includes an estimate for dilution impact of stock grants to our executives under our 2014, 2015, 2016 and 2017 outperformance programs and performance-based awards under our special one-time award grants based on the projected award potential of such programs as of end of such periods, as calculated in accordance with the Accounting Standards Codification 260 Earnings Per Share (the “Dilutive 2014/2015/2016/2017 OPP stock grants and one-time retention award grants”).

(10) This amount represents fully diluted common stock and OP units (including unvested restricted stocks) as of the end of the quarter indicated. The shares of common stock\units outstanding include the estimated Dilutive 2014/2015/2016/2017 OPP stock grants and one-time retention award grants.

5

CONSOLIDATED FINANCIAL RESULTS

6

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

Consolidated Balance Sheets (Unaudited, $ in thousands, except share data)
	March 31, 2017		December 31, 2016
ASSETS
Investment in real estate, net	$	6,044,127	$	6,021,559
Cash and cash equivalents	115,690		83,015
Restricted cash	18,000		25,177
Accounts receivable, net	2,009		6,852
Straight-line rent receivables, net	84,850		87,281
Deferred leasing costs and lease intangible assets, net	296,645		309,962
Derivative assets	8,558		5,935
Goodwill	8,754		8,754
Prepaid expenses and other assets, net	84,582		27,153
Investment in unconsolidated entities	38,546		37,228
Assets associated with real estate held for sale	—		66,082
TOTAL ASSETS	$	6,701,761	$	6,678,998
LIABILITIES AND EQUITY
Notes payable, net	$	2,388,388	$	2,688,010
Accounts payable and accrued liabilities	135,198		120,444
Lease intangible liabilities, net	73,033		80,130
Security deposits	33,019		31,495
Prepaid rent	34,779		40,755
Derivative liabilities	967		1,303
Liabilities associated with real estate held for sale	—		3,934
TOTAL LIABILITIES	2,665,384		2,966,071
6.25% Series A cumulative redeemable preferred units of the operating partnership	10,177		10,177
EQUITY
Hudson Pacific Properties, Inc. stockholders’ equity:
Common stock, $0.01 par value, 490,000,000 authorized, 155,279,629 shares and 136,492,235 shares outstanding at March 31, 2017 and December 31, 2016, respectively	1,553		1,364
Additional paid-in capital	3,691,819		3,109,394
Accumulated other comprehensive income	8,710		9,496
Accumulated income (deficit)	3,784		(16,971		)
Total Hudson Pacific Properties, Inc. stockholders’ equity	3,705,866		3,103,283
Non-controlling interest—members in consolidated entities	307,438		304,608
Non-controlling interest—units in the operating partnership	12,896		294,859
TOTAL EQUITY	4,026,200		3,702,750
TOTAL LIABILITIES AND EQUITY	$	6,701,761	$	6,678,998

7

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

Consolidated Statements of Operations (Unaudited, $ in thousands, except share data)
	Three Months Ended March 31,
	2017			2016
REVENUES
Office
Rental	$	133,516		$	116,227
Tenant recoveries	17,401			20,533
Parking and other	5,899			5,532
Total office revenues	156,816			142,292
Media & Entertainment
Rental	6,685			6,028
Tenant recoveries	665			199
Other property-related revenue	4,042			4,969
Other	77			49
Total Media & Entertainment revenues	11,469			11,245
TOTAL REVENUES	168,285			153,537
OPERATING EXPENSES
Office operating expenses	$	47,954		$	47,703
Media & Entertainment operating expenses	7,251			5,952
General and administrative	13,810			12,503
Depreciation and amortization	70,767			68,368
TOTAL OPERATING EXPENSES	139,782			134,526
INCOME FROM OPERATIONS	28,503			19,011
OTHER EXPENSE (INCOME)
Interest expense	21,930			17,251
Interest income	(30		)	(13		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Other (income) expense	(678		)	24
TOTAL OTHER EXPENSES	21,216			19,387
INCOME (LOSS) BEFORE GAINS ON SALE OF REAL ESTATE	7,287			(376		)
Gains on sale of real estate	16,866			6,352
NET INCOME	24,153			5,976
Net income attributable to preferred units	(159		)	(159		)
Net income attributable to participating securities	(240		)	(197		)
Net income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Net income attributable to units in the operating partnership	(202		)	(1,422		)
Net income attributable to Hudson Pacific Properties, Inc. common stockholders	$	20,515		$	2,253
Basic and diluted per share amounts:
Net income attributable to common stockholders—basic	$	0.14		$	0.03
Net income attributable to common stockholders—diluted	$	0.14		$	0.03
Weighted average shares of common stock outstanding—basic	147,950,594			89,190,803
Weighted average shares of common stock outstanding—diluted	149,950,346			89,597,803
Dividends declared per share of common stock	$	0.250		$	0.200

8

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

FUNDS FROM OPERATIONS (Unaudited, $ in thousands, except per share data)
	Three Months Ended
Quarter To Date	March 31,   2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Funds From Operations (“FFO”)(1)
Net income	$	24,153		$	28,530		$	5,217		$	4,035		$	5,976
Adjustments:
Depreciation and amortization of real estate assets	70,294			66,720			66,965			65,655			67,905
Gains on sale of real estate	(16,866		)	(21,874		)	—			(2,163		)	(6,352		)
FFO attributable to non-controlling interests	(5,507		)	(5,243		)	(4,902		)	(4,510		)	(4,162		)
Net income attributable to preferred units	(159		)	(159		)	(159		)	(159		)	(159		)
FFO to common stockholders and unitholders	71,915			67,974			67,121			62,858			63,208
Specified items impacting FFO:
Acquisition-related expenses	—			—			315			61			—
FFO (excluding specified items) to common stockholders and unitholders	$	71,915		$	67,974		$	67,436		$	62,919		$	63,208
Weighted average common stock/units outstanding—diluted	150,335			146,955			146,793			146,399			145,894
FFO per common stock/unit—diluted	$	0.48		$	0.46		$	0.46		$	0.43		$	0.43
FFO (excluding specified items) per common stock/unit—diluted	$	0.48		$	0.46		$	0.46		$	0.43		$	0.43
	Three Months Ended			Twelve Months Ended			Nine Months Ended			Six Months Ended			Three Months Ended
Year To Date	March 31,   2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Funds From Operations (“FFO”)(1)
Net income	$	24,153		$	43,758		$	15,228		$	10,011		$	5,976
Adjustments:
Depreciation and amortization of real estate assets	70,294			267,245			200,525			133,560			67,905
Gains on sale of real estate	(16,866		)	(30,389		)	(8,515		)	(8,515		)	(6,352		)
FFO attributable to non-controlling interests	(5,507		)	(18,817		)	(13,574		)	(8,672		)	(4,162		)
Net income attributable to preferred units	(159		)	(636		)	(477		)	(318		)	(159		)
FFO to common stockholders and unitholders	71,915			261,161			193,187			126,066			63,208
Specified items impacting FFO:
Acquisition-related expenses	—			376			376			61			—
FFO (excluding specified items) to common stockholders and unitholders	$	71,915		$	261,537		$	193,563		$	126,127		$	63,208
Weighted average common stock/units outstanding—diluted	150,335			146,739			146,668			146,350			145,894
FFO per common stock/unit—diluted	$	0.48		$	1.78		$	1.32		$	0.86		$	0.43
FFO (excluding specified items) per common stock/unit—diluted	$	0.48		$	1.78		$	1.32		$	0.86		$	0.43

______________________________

(1) See page 36 for Management’s Statements on FFO.

9

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

ADJUSTED FUNDS FROM OPERATIONS (Unaudited, $ in thousands)
	Three Months Ended
Quarter To Date	March 31,   2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Adjusted Funds From Operations (“AFFO”)(1)
FFO	$	71,915		$	67,974		$	67,121		$	62,858		$	63,208
Adjustments:
Straight-line rent, net	3,084			(9,069		)	(7,510		)	(4,979		)	(4,790		)
Amortization of above-market and below-market leases, net	(5,564		)	(5,776		)	(4,347		)	(4,298		)	(4,697		)
Amortization of above-market and below-market ground leases, net	637			556			534			535			535
Amortization of lease incentive costs	320			311			303			268			269
Amortization of deferred financing costs and loan premium, net	1,157			1,155			1,128			1,558			1,015
Unrealized (gain) loss on ineffective portion of derivative instrument	(6		)	(194		)	(879		)	384			2,125
Recurring capital expenditures, tenant improvements and lease commissions	(31,712		)	(28,075		)	(22,903		)	(24,099		)	(20,217		)
Non-cash compensation expense	3,901			4,213			3,288			3,301			3,342
AFFO	$	43,732		$	31,095		$	36,735		$	35,528		$	40,790
Dividends paid to common stock and unitholders	$	39,919		$	29,350		$	29,350		$	29,317		$	29,802
AFFO payout ratio	91.3		%	94.4		%	79.9		%	82.5		%	73.1		%
	Three Months Ended			Twelve Months Ended			Nine Months Ended			Six Months Ended			Three Months Ended
Year To Date	March 31,   2017			December 31, 2016			September 30, 2016			June 30, 2016			March 31, 2016
Adjusted Funds From Operations (“AFFO”)(1)
FFO	$	71,915		$	261,161		$	193,187		$	126,066		$	63,208
Adjustments:
Straight-line rent, net	3,084			(26,348		)	(17,279		)	(9,769		)	(4,790		)
Amortization of above-market and below-market leases, net	(5,564		)	(19,118		)	(13,342		)	(8,995		)	(4,697		)
Amortization of above-market and below-market ground leases, net	637			2,160			1,604			1,070			535
Amortization of lease incentive costs	320			1,151			840			537			269
Amortization of deferred financing costs and loan premium, net	1,157			4,856			3,701			2,573			1,015
Unrealized (gain) loss on ineffective portion of derivative instrument	(6		)	1,436			1,630			2,509			2,125
Recurring capital expenditures, tenant improvements and lease commissions	(31,712		)	(95,294		)	(67,219		)	(44,316		)	(20,217		)
Non-cash compensation expense	3,901			14,144			9,931			6,643			3,342
AFFO	$	43,732		$	144,148		$	113,053		$	76,318		$	40,790
Dividends paid to common stock and unitholders	$	39,919		$	117,819		$	88,469		$	59,119		$	29,802
AFFO payout ratio	91.3		%	81.7		%	78.3		%	77.5		%	73.1		%

_____________________________

(1) See page 36 for Management’s Statements on AFFO.

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First Quarter 2017 Supplemental Operating and Financial Information

DEBT SUMMARY

(Unaudited, $ in thousands)

The following table summarizes the balance of our indebtedness as of March 31, 2017 and December 31, 2016.

	March 31, 2017			December 31, 2016
Notes payable	$	2,407,196		$	2,707,839
Less: deferred financing costs, net(1)	(18,808		)	(19,829		)
Notes payable, net	$	2,388,388		$	2,688,010

________________

(1) Excludes deferred financing costs related to establishing our unsecured revolving credit facility of $1.3 million and $1.5 million as of March 31, 2017 and December 31, 2016, respectively, which are included in prepaid expenses and other assets, net in the Consolidated Balance Sheets. 

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First Quarter 2017 Supplemental Operating and Financial Information

DEBT SUMMARY—(Continued)

(Unaudited, $ in thousands)

The following table sets forth information with respect to the amounts included in notes payable, net as of:

	March 31, 2017					December 31, 2016
	Principal Amount		Deferred Financing Costs, net			Principal Amount		Deferred Financing Costs, net			Interest Rate(1)	Contractual Maturity Date		Annual Debt Service(2)		Balance at Maturity
UNSECURED LOANS
Unsecured Revolving Credit Facility(3)	$	—	$	—		$	300,000	$	—		LIBOR+ 1.15% to 1.85%	4/1/2019	(4)	$	—	$	—
5-Year Term Loan due April 2020(3)(5)	450,000		(3,243		)	450,000		(3,513		)	LIBOR+ 1.30% to 2.20%	4/1/2020		—		450,000
5-Year Term Loan due November 2020(3)	175,000		(697		)	175,000		(745		)	LIBOR +1.30% to 2.20%	11/17/2020		—		175,000
7-Year Term Loan due April 2022(3)(6)	350,000		(2,157		)	350,000		(2,265		)	LIBOR+ 1.60% to 2.55%	4/1/2022		11,760		350,000
7-Year Term Loan due November 2022(3)(7)	125,000		(892		)	125,000		(931		)	LIBOR +1.60% to 2.55%	11/17/2022		3,788		125,000
Series A Notes	110,000		(891		)	110,000		(930		)	4.34%	1/2/2023		4,774		110,000
Series E Notes	50,000		(289		)	50,000		(300		)	3.66%	9/15/2023		1,830		50,000
Series B Notes	259,000		(2,207		)	259,000		(2,271		)	4.69%	12/16/2025		12,147		259,000
Series D Notes	150,000		(874		)	150,000		(898		)	3.98%	7/6/2026		5,970		150,000
Series C Notes	56,000		(527		)	56,000		(539		)	4.79%	12/16/2027		2,682		56,000
TOTAL UNSECURED LOANS	1,725,000		(11,777		)	2,025,000		(12,392		)				42,951		1,725,000
MORTGAGE LOANS
Mortgage Loan secured by Rincon Center(8)	99,897		(158		)	100,409		(198		)	5.13%	5/1/2018		7,195		97,854
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios	5,001		(1,357		)	5,001		(1,534		)	LIBOR+2.25%	3/4/2019	(4)	—		5,001
Mortgage Loan secured by Met Park North(9)	64,500		(370		)	64,500		(398		)	LIBOR+1.55%	8/1/2020		2,393		64,500
Mortgage Loan secured by 10950 Washington(8)	27,798		(337		)	27,929		(354		)	5.32%	3/11/2022		2,003		24,981
Mortgage Loan secured by Pinnacle I(10)(11)	129,000		(567		)	129,000		(593		)	3.95%	11/7/2022		5,359		117,190
Mortgage Loan secured by Element L.A.	168,000		(2,256		)	168,000		(2,321		)	4.59%	11/6/2025		7,716		168,000
Mortgage Loan secured by Pinnacle II(11)	87,000		(701		)	87,000		(720		)	4.30%	6/11/2026		3,741		87,000
Mortgage Loan secured by Hill7(12)	101,000		(1,285		)	101,000		(1,319		)	3.38%	11/6/2026		3,414		101,000
TOTAL MORTGAGE LOANS	682,196		(7,031		)	682,839		(7,437		)				31,821		665,526
TOTAL	$	2,407,196	$	(18,808	)	$	2,707,839	$	(19,829	)				$	74,772	$	2,390,526

_________________

(1) Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2017, which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness.

(2) Annual debt service includes principal payments based on amortization schedule and annual interest payments of fixed rate loans and variable rate loans with effective fixed rate as a result of derivative instruments on the full principal balance. In instances where interest is paid based on a LIBOR margin, we used the current margin based on the leverage ratio as of March 31, 2017. Amount doesn't include interest payment of variable rate loans that are partially effectively fixed through derivative instruments.

(3) We have the option to make an irrevocable election to change the interest rate depending on our credit rating. As of March 31, 2017, no such election had been made.

(4) The maturity date may be extended once for an additional one-year term.

(5) Effective July 2016, $300.0 million of the term loan has been effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps.

(6) Effective July 2016, the outstanding balance of the term loan has been effectively fixed at 3.36% to 4.31% per annum through the use of two interest rate swaps.

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First Quarter 2017 Supplemental Operating and Financial Information

(7) Effective June 1, 2016, the outstanding balance of the term loan has been effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap.

(8) Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.

(9) This loan bears interest only. Interest on the full loan amount has been effectively fixed at 3.71% per annum through use of an interest rate swap.

(10) 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 with a balloon payment at maturity.

(11) We own 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties. The full amount of the loan is shown.

(12) We own 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. The maturity date of this loan can be extended for an additional two years at a higher interest rate and with principal amortization.

13

PORTFOLIO DATA

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First Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY(1)
Location	Submarket	Square Feet(2)	Percent Occupied(3)		Percent Leased(3)		Annualized Base Rent(4)		Annualized Base Rent Per Square Foot(4)
SAME-STORE(5)
Greater Seattle, Washington
Northview Center	Lynnwood	182,009	84.4	%	90.3	%	$	3,314,684	$	21.57
Met Park North	South Lake Union	190,748	95.8		95.8		5,190,390		28.41
Merrill Place	Pioneer Square	163,768	88.6		95.6		4,255,711		29.32
505 First Avenue	Pioneer Square	288,140	97.4		97.4		6,301,605		22.45
83 King Street	Pioneer Square	184,083	90.0		90.0		4,711,461		28.45
Subtotal		1,008,748	92.0	%	94.2	%	$	23,773,851	$	25.62
San Francisco Bay Area, California
1455 Market Street(6)	San Francisco	1,025,833	99.7	%	99.7	%	$	37,972,586	$	37.12
275 Brannan Street	San Francisco	54,673	100.0		100.0		3,166,361		57.91
625 Second Street	San Francisco	138,080	99.4		99.4		7,476,121		54.46
875 Howard Street	San Francisco	230,443	99.4		99.4		6,035,940		26.35
901 Market Street	San Francisco	206,218	100.0		100.0		10,062,437		48.80
Rincon Center	San Francisco	580,850	91.9		92.5		24,428,373		45.74
Towers at Shore Center	Redwood Shores	334,483	82.4		83.6		15,452,290		56.10
Skyway Landing	Redwood Shores	247,173	97.1		97.1		10,834,641		45.13
Lockheed	Palo Alto	42,899	100.0		100.0		2,923,996		68.16
2180 Sand Hill Road	Palo Alto	45,613	97.2		97.2		4,108,486		92.70
3400 Hillview	Palo Alto	207,857	100.0		100.0		13,334,941		64.15
Clocktower Square	Palo Alto	100,344	71.0		71.0		5,278,065		74.09
Embarcadero Place	Palo Alto	197,402	81.5		87.4		7,156,122		44.46
Foothill Research Center	Palo Alto	195,376	100.0		100.0		12,870,949		65.88
Campus Center	Milpitas	471,580	100.0		100.0		15,845,088		33.60
1740 Technology	North San Jose	206,876	99.3		99.3		7,074,459		34.43
Concourse	North San Jose	944,386	97.7		97.7		28,973,699		31.39
Skyport Plaza	North San Jose	418,086	96.5		96.5		13,148,205		32.59
Subtotal		5,648,172	96.1	%	96.4	%	$	226,142,759	$	41.68
Los Angeles, California
Pinnacle I(7)	Burbank	393,777	97.0	%	97.0	%	$	15,953,498	$	41.75
Pinnacle II(7)	Burbank	230,000	100.0		100.0		9,281,389		40.35
6922 Hollywood	Hollywood	205,523	87.7		87.7		8,438,719		46.84
Technicolor Building	Hollywood	114,958	100.0		100.0		5,043,851		43.88
3401 Exposition	West Los Angeles	63,376	100.0		100.0		2,702,871		42.65
10900 Washington	West Los Angeles	9,919	100.0		100.0		403,505		40.68
10950 Washington	West Los Angeles	159,025	100.0		100.0		6,414,707		40.34
604 Arizona	West Los Angeles	44,260	100.0		100.0		2,002,564		45.25
9300 Wilshire	West Los Angeles	61,224	85.1		90.8		2,446,278		46.95
Element LA	West Los Angeles	284,037	100.0		100.0		15,409,645		54.25
Del Amo Office	Torrance	113,000	100.0		100.0		3,327,208		29.44
Subtotal		1,679,099	97.3	%	97.5	%	$	71,424,235	$	43.74
Total Same-store		8,336,019	95.8	%	96.3	%	$	321,340,845	$	40.24

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First Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO BY PROPERTY(1)
NON-SAME-STORE
San Francisco Bay Area, California
555 Twin Dolphin Plaza	Redwood Shores	198,936	92.1	%	92.9	%	$	9,148,809	$	49.93
Page Mill Hill	Palo Alto	182,676	98.4		98.4		11,469,555		63.80
Page Mill Center	Palo Alto	176,245	99.9		99.9		12,004,040		68.15
Total Non-same-store		557,857	96.6	%	96.9	%	$	32,622,404	$	60.51
Total Stabilized		8,893,876	95.9	%	96.4	%	$	353,963,249	$	41.52
LEASE-UP
Greater Seattle, Washington
Hill7(8)	South Lake Union	285,680	70.5	%	80.4	%	$	7,294,316	$	36.20
Subtotal		285,680	70.5	%	80.4	%	$	7,294,316	$	36.20
San Francisco Bay Area, California
Peninsula Office Park	San Mateo	510,789	74.5	%	77.3	%	$	17,494,921	$	46.00
Metro Center	Foster City	730,215	74.7		75.9		25,732,828		47.20
333 Twin Dolphin Plaza	Redwood Shores	182,789	80.3		80.3		7,754,171		52.81
Shorebreeze	Redwood Shores	230,932	65.0		73.8		8,080,704		53.80
Palo Alto Square	Palo Alto	328,251	70.3		82.5		17,436,327		75.52
Techmart Commerce Center	Santa Clara	284,440	77.5		83.9		8,777,402		39.84
Gateway	North San Jose	609,093	74.8		78.3		14,836,766		32.54
Metro Plaza	North San Jose	456,921	79.5		83.5		12,315,876		33.91
Subtotal		3,333,430	74.8	%	79.0	%	$	112,428,996	$	45.10
Los Angeles, California
11601 Wilshire	West Los Angeles	500,475	84.2	%	86.1	%	$	16,855,193	$	39.99
Subtotal		500,475	84.2	%	86.1	%	$	16,855,193	$	39.99
Total Lease-up		4,119,585	75.6	%	80.0	%	$	136,578,505	$	43.84
TOTAL IN-SERVICE		13,013,461	89.5	%	91.2	%	$	490,541,754	$	42.14

___________________________

(1) Our in-service portfolio excludes the redevelopment, development, properties held-for-sale and land properties described on pages 18 and 19. As of March 31, 2017, we had three office development properties under construction, four office redevelopment properties under construction and six land properties (see pages 18 and 19). We define lease-up properties as properties that have not yet reached 92.0% occupancy since the date they were acquired or placed under redevelopment or development.

(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 re-measurement or re-leasing.

(3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of March 31, 2017, 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 March 31, 2017, 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 March 31, 2017. Annualized base rent does not reflect tenant reimbursements.

(5) Defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2016 and still owned and included in the stabilized portfolio as of March 31, 2017.

(6) We own 55% of the ownership interests in the consolidated joint venture that owns the 1455 Market Street property.

(7) We own 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties.

(8) We own 55% of the ownership interests in the consolidated joint venture that owns the Hill7 property.

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First Quarter 2017 Supplemental Operating and Financial Information

IN-SERVICE OFFICE PORTFOLIO SUMMARY(1)
			Occupied Square Feet	Percent Occupied(3)		Leased Square Feet	Percent Leased(3)		Annualized Base Rent(4)		Annualized Base Rent Per Square Foot(4)
Location	Properties	Square Feet(2)
STABILIZED
Greater Seattle, Washington
Lynnwood	1	182,009	153,692	84.4	%	164,326	90.3	%	$	3,314,684	$	21.57
South Lake Union	1	190,748	182,692	95.8		182,692	95.8		5,190,390		28.41
Pioneer Square	3	635,991	591,397	93.0		602,895	94.8		15,268,777		25.82
Subtotal	5	1,008,748	927,781	92.0	%	949,913	94.2	%	$	23,773,851	$	25.62
San Francisco Bay Area, California
San Francisco	6	2,236,097	2,184,270	97.7	%	2,187,602	97.8	%	$	89,141,817	$	40.81
Redwood Shores	3	780,592	698,795	89.5		704,553	90.3		35,435,741		50.71
Palo Alto	8	1,148,412	1,078,543	93.9		1,090,084	94.9		69,146,154		64.11
Milpitas	1	471,580	471,580	100.0		471,580	100.0		15,845,088		33.60
North San Jose	3	1,569,348	1,531,794	97.6		1,531,794	97.6		49,196,363		32.12
Subtotal	21	6,206,029	5,964,982	96.1	%	5,985,613	96.4	%	$	258,765,163	$	43.38
Los Angeles, California
Burbank	2	623,777	612,160	98.1	%	612,160	98.1	%	$	25,234,887	$	41.22
Hollywood	2	320,481	295,113	92.1		295,113	92.1		13,482,571		45.69
West Los Angeles	6	621,841	612,721	98.5		616,193	99.1		29,379,570		47.95
Torrance	1	113,000	113,000	100.0		113,000	100.0		3,327,208		29.44
Subtotal	11	1,679,099	1,632,994	97.3	%	1,636,466	97.5	%	$	71,424,235	$	43.74
Total Stabilized	37	8,893,876	8,525,757	95.9	%	8,571,992	96.4	%	$	353,963,249	$	41.52
LEASE-UP
Greater Seattle, Washington
South Lake Union	1	285,680	201,493	70.5	%	229,780	80.4	%	$	7,294,316	$	36.20
Subtotal	1	285,680	201,493	70.5	%	229,780	80.4	%	$	7,294,316	$	36.20
San Francisco Bay Area, California
San Mateo	1	510,789	380,328	74.5	%	394,997	77.3	%	$	17,494,921	$	46.00
Foster City	1	730,215	545,179	74.7		554,216	75.9		25,732,828		47.20
Redwood Shores	2	413,721	297,017	71.8		317,236	76.7		15,834,875		53.31
Palo Alto	1	328,251	230,877	70.3		270,750	82.5		17,436,327		75.52
Santa Clara	1	284,440	220,315	77.5		238,784	83.9		8,777,402		39.84
North San Jose	2	1,066,014	819,044	76.8		858,282	80.5		27,152,642		33.15
Subtotal	8	3,333,430	2,492,760	74.8	%	2,634,265	79.0	%	$	112,428,996	$	45.10
Los Angeles, California
West Los Angeles	1	500,475	421,474	84.2	%	430,778	86.1	%	$	16,855,193	$	39.99
Subtotal	1	500,475	421,474	84.2	%	430,778	86.1	%	$	16,855,193	$	39.99
Total Lease-up	10	4,119,585	3,115,727	75.6	%	3,294,823	80.0	%	$	136,578,505	$	43.84
TOTAL IN-SERVICE	47	13,013,461	11,641,484	89.5	%	11,866,815	91.2	%	490,541,754		$	42.14

___________________________

Refer to footnotes on page 16.

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First Quarter 2017 Supplemental Operating and Financial Information

REDEVELOPMENT, DEVELOPMENT AND HELD-FOR-SALE OFFICE SUMMARY⁽¹⁾ 

		Estimated Square Feet(2)	Occupied Square Feet	Percent Occupied(3)		Leased Square Feet	Percent Leased(3)		Annualized Base Rent(4)		Annualized Base Rent Per Square Foot(4)
Location	Submarket
REDEVELOPMENT
Greater Seattle, WA
Merrill Place Theater Building	Pioneer Square	29,385	—	—	%	—	—	%	$	—	$	—
Subtotal		29,385	—	—	%	—	—	%	$	—	$	—
San Francisco Bay Area, CA
875 Howard Street (1st Floor)	San Francisco	55,827	—	—	%	—	—	%	$	—	$	—
Subtotal		55,827	—	—	%	—	—	%	$	—	—
Los Angeles, CA
405 Mateo	Downtown Los Angeles	83,285	—	—	%	—	—	%	$	—	$	—
4th & Traction	Downtown Los Angeles	120,937	—	—		—	—		—		—
Subtotal		204,222	—	—	%	—	—	%	$	—	$	—
Total Redevelopment		289,434	—	—	%	—	—	%	$	—	$	—
DEVELOPMENT
Greater Seattle, WA
450 Alaskan Way	Pioneer Square	166,800	—	—	%	91,357	54.8	%	$	—	$	—
Subtotal		166,800	—	—	%	91,357	54.8	%	$	—	$	—
Los Angeles, CA
Icon	Hollywood	325,757	275,791	84.7	%	325,757	100.0	%	$	14,892,714	$	54.00
CUE	Hollywood	91,953	—	—		91,953	100.0		—		—
Subtotal		417,710	275,791	66.0	%	417,710	100.0	%	$	14,892,714	$	54.00
Total Development		584,510	275,791	47.2	%	509,067	87.1	%	$	14,892,714	$	54.00
TOTAL		873,944	275,791	31.6	%	509,067	58.2	%	$	14,892,714	$	54.00

______________________________

(1) Excludes in-service properties and land assets (see pages 15, 16 and 19).

(2) Square footages have 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 re-measurement or re-leasing.

(3) Percent occupied for office properties is calculated as (i) square footage under commenced leases as of March 31, 2017, 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 March 31, 2017, 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 March 31, 2017. Annualized base rent does not reflect tenant reimbursements.

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LAND PROPERTIES SUMMARY

Location	Submarket	Square Feet(1)	Percent of Total
San Francisco Bay Area, California
Skyport Plaza	North San Jose	350,000	13.7	%
Campus Center	Milpitas	946,350	37.3
Subtotal		1,296,350	51.0	%
Los Angeles, California
Epic (Sunset Bronson—Lot A)	Hollywood	300,000	11.8	%
Sunset Bronson—Lot D(2)	Hollywood	19,816	0.8
Sunset Gower—Redevelopment	Hollywood	423,396	16.7
Element LA	West Los Angeles	500,000	19.7
Subtotal		1,243,212	49.0	%
TOTAL		2,539,562	100.0	%

______________________________

(1) 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.

(2) Square footage for Sunset Bronson Lot D represents management’s estimate of developable square feet for 33 residential units.

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First Quarter 2017 Supplemental Operating and Financial Information

MEDIA & ENTERTAINMENT PORTFOLIO SUMMARY

Property	Square Feet	Percent of Total		Percent Leased(1)		Annual Base Rent(2)		Annual Base Rent Per Leased Square Foot(3)
Sunset Gower	571,626	65.0	%	90.1	%	$	16,720,336	$	32.46
Sunset Bronson	308,026	35.0		90.7		10,146,815		36.32
TOTAL	879,652	100.0	%	90.3	%	$	26,867,151	$	33.82

______________________________

(1) Percent leased for Media and Entertainment properties is the average percent leased for the 12 months ended March 31, 2017.

(2) Annual base rent for Media and Entertainment properties reflects actual base rent for the 12 months ended March 31, 2017, excluding tenant reimbursements.

(3) 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, 2017.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

CURRENT VALUE CREATION DEVELOPMENT PROJECTS

(Unaudited, in thousands, except square feet)

Estimated Construction Period

Project Costs(1)

City

Start Date

Estimated Completion Date

Estimated Stabilization Date(2)

Estimated Rentable Square Feet(3)

Total %Leased

Project Costs as of 3/31/17

Total Estimated Project Costs

Estimated Initial Stabilized Yield on Project Costs(4)

UNDER CONSTRUCTION

Greater Seattle, Washington

450 Alaskan Way

Seattle

Q1-2016

Q4-2017

Q2-2018

166,800

54.8

%

$

47,813

(5)

$

92,867

(5)

6.7%

Los Angeles, California

Icon(6)

Hollywood

Q4-2014

Q4-2016

Q2-2017

325,757

100.0

%

115,806

146,926

9.7%

CUE(6)

Hollywood

Q1-2016

Q3-2017

Q2-2019

91,953

100.0

%

33,172

52,615

8.3%

Total

417,710

100.0

%

(7

)

148,978

199,541

9.3%

4th & Traction

Los Angeles

Q4-2015

Q2-2017

Q3-2018

120,937

—

%

75,411

(8)

95,988

(8)

6.3%

Total Under Construction

705,447

$

272,202

$

388,396

FUTURE DEVELOPMENT PIPELINE

Greater Seattle, Washington

Merrill Place Theater Building

Seattle

TBD

TBD

TBD

29,385

N/A

N/A

TBD

TBD

San Francisco Bay Area, California

Skyport Plaza

North San Jose

TBD

TBD

TBD

350,000

N/A

$

11,179

(9)

TBD

TBD

Campus Center

Milpitas

TBD

TBD

TBD

946,350

N/A

$

7,353

(10)

TBD

TBD

Los Angeles, California

Sunset Bronson—Lot D

Hollywood

TBD

TBD

TBD

19,816

N/A

N/A

TBD

TBD

Epic (Sunset Bronson—Lot A)

Hollywood

TBD

TBD

TBD

300,000

N/A

$

8,228

(11)

TBD

TBD

Sunset Gower—Redevelopment

Hollywood

TBD

TBD

TBD

423,396

N/A

N/A

TBD

TBD

Element LA

Los Angeles

TBD

TBD

TBD

500,000

N/A

N/A

TBD

TBD

405 Mateo

Los Angeles

TBD

TBD

TBD

83,285

N/A

$

42,259

(12)

TBD

TBD

Total Future Development Pipeline

2,652,232

__________________________

(1) Project costs exclude interest costs capitalized in accordance with Accounting Standards Codification (“ASC”) 835-20-50-1, personnel costs capitalized in accordance with ASC 970-360-25 and operating expenses capitalized in accordance with ASC 970-340.

(2) Based on management’s estimate of stabilized occupancy (92.0%).

(3) 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 (BOMA) rentable area. Square footage may change over time due to re-measurement or re-leasing.

(4) Estimated initial stabilized yield on project costs is calculated as the quotient of the estimated amounts of NOI and our investment in the property once the project has reached stabilization and initial rental concessions, if any, have elapsed. Our estimated initial stabilized yield excludes the impact of leverage. Our cash rents related to our value-creation projects are expected to increase over time and our average cash yields are expected, in general, to be greater than our estimated initial stabilized yields on a cash basis. Our estimates for initial cash yields, and total costs at completion, represent our initial estimates at the commencement of the project. We expect to update this information upon completion of the project, or sooner if there are significant changes to the expected project yields or costs. We caution you not to place undue reliance on the estimated initial stabilized yields because they are based solely on our estimates, using data available to us throughout the development process. The amount of total investment required to reach stabilized occupancy may differ substantially from our estimates due to various factors. We can provide no assurance that the actual initial stabilized yields will be consistent with the estimated initial stabilized yields set forth herein.

(5) Project Costs as of March 31, 2017 and Total Estimated Project Costs for 450 Alaskan Way include $7.0 million for management’s estimate of allocated land and acquisition costs.

(6) The costs of the 1,635-stall parking structure and certain other development costs attributable to both buildings have been allocated based on management’s estimate of each building’s share of such costs. Project Costs and Total Estimated Project Costs exclude land.

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First Quarter 2017 Supplemental Operating and Financial Information

(7) Netflix, Inc. commenced 275,791 square feet January 2017 and is anticipated to commence 49,966 square feet in May 2017, 52,626 square feet in August 2018 and 39,327 square feet in April 2019.

(8) Project Costs as of March 31, 2017 and Total Estimated Project Costs for 4th & Traction include approximately $49.4 million of initial acquisition cost for existing 120,937-square-foot building.

(9) Project Costs as of March 31, 2017 for Skyport Plaza include approximately $10.5 million for management’s estimate of allocated land and acquisition costs.

(10) Project Costs as of March 31, 2017 for Campus Center include approximately $7.0 million for management’s estimate of allocated land and acquisition costs.

(11) Project Costs as of March 31, 2017 for Epic (Sunset Bronson—Lot A) exclude land.

(12) Project Costs as of March 31, 2017 for 405 Mateo include approximately $40.0 million of initial acquisition costs for the existing 83,285-square-foot building.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾

(Unaudited, tabular amounts in thousands, except number of properties and square feet)

	Three Months Ended March 31,
	2017			2016			% change
Same-Store office statistics(2)
Number of properties	34			34
Rentable square feet	8,336,019			8,336,019
Ending % leased	96.3		%	95.9		%	0.4	%
Ending % occupied	95.8		%	94.4		%	1.4	%
Average % occupied for the period	95.6		%	93.6		%	2.0	%
Same-Store Media & Entertainment statistics(3)
Number of properties	2			2
Rentable square feet	879,652			879,652
Average % occupied for the period	90.3		%	81.6		%	8.7	%
SAME-STORE ANALYSIS—GAAP BASIS
	Three Months Ended March 31,
	2017			2016			% change
Same-Store net operating income—GAAP basis
Total office revenues	$	98,942		$	99,494		(0.6	)%
Total Media & Entertainment revenues	11,469			11,245			2.0
Total revenues	$	110,411		$	110,739		(0.3	)%
Total office expense	$	26,965		$	31,210		(13.6	)%
Total Media & Entertainment expense	7,251			5,952			21.8
Total property expense	$	34,216		$	37,162		(7.9	)%
Same-Store office net operating income—GAAP basis	$	71,977		$	68,284		5.4	%
NOI Margin	72.7		%	68.6		%	4.1	%
Same-Store Media & Entertainment net operating income—GAAP basis	$	4,218		$	5,293		(20.3	)%
NOI Margin	36.8		%	47.1		%	(10.3	)%
Same-Store total property net operating income—GAAP basis	$	76,195		$	73,577		3.6	%
NOI Margin	69.0		%	66.4		%	2.6	%

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First Quarter 2017 Supplemental Operating and Financial Information

SAME-STORE ANALYSIS⁽¹⁾—CONTINUED

(Unaudited, tabular amounts in thousands)

SAME-STORE ANALYSIS—CASH BASIS
	Three Months Ended March 31,
	2017				2016			% change
Same-Store net operating income—Cash basis
Total office revenues	$	104,538		(4)	$	93,964		11.3	%
Total Media & Entertainment revenues	11,484				11,056			3.9
Total revenues	$	116,022			$	105,020		10.5	%
Total office expense	$	26,490			$	30,735		(13.8	)%
Total Media & Entertainment expense	7,251				5,952			21.8
Total property expense	$	33,741			$	36,687		(8.0	)%
Same-Store office net operating income—Cash basis	$	78,048			$	63,229		23.4	%
NOI Margin	74.7		%		67.3		%	7.4	%
Same-Store Media & Entertainment net operating income—Cash basis	$	4,233			$	5,104		(17.1	)%
NOI Margin	36.9		%		46.2		%	(9.3	)%
Same-Store total property net operating income—Cash basis	$	82,281			$	68,333		20.4	%
NOI Margin	70.9		%		65.1		%	5.8	%

______________________________

(1) Same-Store for the three months ended March 31, 2017 is defined as all of the properties owned and included in our stabilized portfolio as of January 1, 2016 and still owned and included in the stabilized portfolio as of March 31, 2017.

(2) See page 15 for Same-Store office properties.

(3) See page 20 for Same-Store Media & Entertainment properties.

(4) Includes a one-time early lease termination fee of $10,390,400 at Campus Center.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

RECONCILIATION OF SAME-STORE PROPERTY NET OPERATING INCOME TO GAAP NET INCOME

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
Reconciliation to Net Operating Income
Net Income	$	24,153		$	5,976
Adjustments:
Interest expense	21,930			17,251
Interest income	(30		)	(13		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Other (income) expense	(678		)	24
Gains on sale of real estate	(16,866		)	(6,352		)
Income from operations	$	28,503		$	19,011
Adjustments:
General and administrative	13,810			12,503
Depreciation and amortization	70,767			68,368
Net Operating Income	$	113,080		$	99,882
Net Operating Income Breakdown
Same-Store office revenues — Cash basis	$	104,538		$	93,964
GAAP adjustments to office revenues — Cash basis	(5,596		)	5,530
Same-Store office revenues — GAAP basis	$	98,942		$	99,494
Same-Store Media & Entertainment revenues — Cash basis	$	11,484		$	11,056
GAAP adjustments to media revenues — Cash basis	(15		)	189
Same-Store Media & Entertainment revenues — GAAP basis	$	11,469		$	11,245
Same-Store property revenues — GAAP basis	$	110,411		$	110,739
Same-Store office expenses — Cash basis	$	26,490		$	30,735
GAAP adjustments to office expenses — Cash basis	475			475
Same-Store office expenses — GAAP basis	$	26,965		$	31,210
Same-Store Media & Entertainment expenses — Cash basis	$	7,251		$	5,952
Same-Store Media & Entertainment expenses — GAAP basis	$	7,251		$	5,952
Same-Store property expenses — GAAP basis	$	34,216		$	37,162
Same-Store net operating income — GAAP basis	$	76,195		$	73,577
Non-Same-Store GAAP net operating income	36,885			26,305
Net Operating Income	$	113,080		$	99,882

25

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

NET OPERATING INCOME DETAIL Three Months Ended March 31, 2017 (Unaudited, in thousands)
	Same-Store Office Properties(1)			Non-Same-Store Office Properties(2)			Development/Redevelopment(3)			Lease-Up Properties(4)			Media & Entertainment(5)			Total Properties
Revenue
Rents
Cash	$	87,568		$	8,138		$	2,482		$	31,549		$	6,700		$	136,437
GAAP Revenue	(5,596		)	1,030			1,446			6,065			(15		)	2,930
Total Rents	$	81,972		$	9,168		$	3,928		$	37,614		$	6,685		$	139,367
Tenant Reimbursements	12,930			$	1,004		$	103		$	3,275		$	665		$	17,977
Parking and Other	4,040			3			484			1,208			4,119			9,854
Total Revenue	$	98,942		$	10,175		$	4,515		$	42,097		$	11,469		$	167,198
Property operating expenses	26,965			2,997			750			16,591			7,251			54,554
Property GAAP Net Operating Income	$	71,977		$	7,178		$	3,765		$	25,506		$	4,218		$	112,644
Square Feet	8,336,019			557,857			873,944			4,119,585			879,652			14,767,057
Ending % Leased	96.3		%	96.9		%	58.2		%	80.0		%	90.3		%	89.2		%
Ending % Occupied	95.8		%	96.6		%	31.6		%	75.6		%	90.3		%	86.1		%
NOI Margin	72.7		%	70.5		%	83.4		%	60.6		%	36.8		%	67.4		%
Property GAAP Net Operating Income	$	71,977		$	7,178		$	3,765		$	25,506		$	4,218		$	112,644
Less : GAAP Revenue	5,596			(1,030		)	(1,446		)	(6,065		)	15			(2,930		)
Add : GAAP Expense	475			144			—			18			—			637
Property Cash Net Operating Income	$	78,048		$	6,292		$	2,319		$	19,459		$	4,233		$	110,351
Net Operating Income Reconciliation	Q1 - 2017
Net Income	$	24,153
Adjustments:
Interest expense	21,930
Interest income	(30		)
Unrealized gain on ineffective portion of derivative instruments	(6		)
Other income	(678		)
Gains on sale of real estate	(16,866		)
Income from operations	28,503			(1) See page 15 for Same-Store office properties for the three months ended March 31, 2017.
Adjustments:				(2) See page 16 for Non-Same-Store properties.
General and administrative	13,810			(3) See page 18 for redevelopment, development and held-for-sale properties.
Depreciation and amortization	70,767			(4) See page 16 for lease-up properties.
Total GAAP Net Operating Income	$	113,080		(5) See page 20 for Same-Store Media & Entertainment properties.
Property GAAP Net Operating Income	112,644
Disposed Asset	303
Other Inter-Company Eliminations	133
Total GAAP Net Operating Income	$	113,080

26

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO LEASING ACTIVITY

	Three Months Ended   March 31, 2017
Total Gross Leasing Activity
Rentable square feet	525,084
Gross New Leasing Activity
Rentable square feet	352,596
New cash rate	$	65.65
Gross Renewal Leasing Activity
Rentable square feet	172,488
Renewal cash rate	$	53.61
Total Leases Expired and Terminated
Contractual (scheduled) expiration (square feet)	109,503
Early termination (square feet)	69,611
Total	179,114
Net Absorption
Leased rentable square feet	173,482
Cash Rent Growth(1)
Expiring rate	$	45.04
New/renewal rate	$	64.00
Change	42.1		%
Straight-Line Rent Growth(2)
Expiring Rate	$	42.41
New/renewal rate	$	68.98
Change	62.6		%
Weighted Average Lease Terms
New (in months)	94.8
Renewal (in months)	48.7

Tenant Improvements and Leasing Commissions(3)	Lease Transaction Costs Per Square Foot
	Three Months Ended   March 31, 2017
	Total		Annual
New leases	$	79.31	$	10.04
Renewal leases	$	22.41	$	5.52
Blended	$	60.62	$	9.13

______________________________

(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.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO COMMENCED LEASES WITH NON-RECURRING, UP-FRONT ABATEMENTS(1)
Location	Submarket	Square Feet	Lease Start Date	Rent Start Date	Starting Base Rents(2)		Lease Expiration Date
Greater Seattle, Washington
Hill7	South Lake Union	84,703	1/17/2017	7/17/2017	$	35.00	7/31/2027
San Francisco Bay Area, California
333 Twin Dolphin Plaza	Redwood Shores	12,809	10/24/2016	4/1/2017	$	58.80	11/30/2022
Metro Center	Foster City	12,472	11/1/2016	3/1/2017	$	67.80	10/31/2026
Metro Center(3)	Foster City	76,922	Various	5/1/2018	$	43.80	4/30/2028
Metro Center(4)	Foster City	10,625	3/19/2017	3/19/2017	$	69.00	3/31/2027
Los Angeles, California
11601 Wilshire(5)	West Los Angeles	30,273	1/1/2017	1/1/2017	$	51.60	2/29/2028
11601 Wilshire	West Los Angeles	12,389	1/1/2017	11/1/2017	$	55.80	12/31/2026
Pinnacle I(6)	Burbank	12,803	3/1/2017	3/1/2017	$	42.00	9/30/2024

______________________________

(1) Consists of leases for more than 10,000 square feet that commenced on or prior to March 31, 2017, with three or more months of up-front free rent resulting in a rent start date after the commencement of the three-month period ending March 31, 2017.

(2) Stated per leased square foot. Calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease commencement date, and (ii) 12, by (iii) the leased square footage. For commenced leases, calculated by dividing the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) for the month ended March 31, 2017, and (ii) 12, by (iii) leased square footage. Base rents do not include tenant reimbursements.

(3) Qualys, Inc. commenced 69,834 square feet on February 1, 2017 and 7,088 square feet on March 15, 2017.

(4) Tenant paid monthly base rent concurrently with the lease start date on March 19, 2017. Monthly base rent is abated for the subsequent four-month period from April 2017 through July 2017.

(5) Tenant paid monthly base rent concurrently with the lease start date on January 1, 2017. Monthly base rent is abated for the subsequent nine-month period from February 2017 through October 2017.

(6) Tenant paid monthly base rent concurrently with the lease start date on March 1, 2017. Monthly base rent is abated for the subsequent seven-month period from April 2017 through October 2017.

28

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

QUARTERLY UNCOMMENCED—NEXT EIGHT QUARTERS(1)
	Q2 2017				Q3 2017			Q4 2017				Q1 2018			Q2 2018			Q3 2018				Q4 2018			Q1 2019
Location	SF	Starting Rent/sf (2)			SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)			SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)			SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)
Greater Seattle, Washington
Lynnwood	—	$	—		10,634	$	19.31	—	$	—		—	$	—	—	$	—	—	$	—		—	$	—	—	$	—
South Lake Union	—	—			—	—		—	—			—	—		—	—		—	—			—	—		28,287	36.00
Pioneer Square	11,498	35.58			—	—		91,357	38.00		(3)	—	—		—	—		—	—			—	—		—	—
Subtotal	11,498	$	35.58		10,634	$	19.31	91,357	$	38.00		—	$	—	—	$	—	—	$	—		—	$	—	28,287	$	36.00
San Francisco Bay Area, California
San Francisco	—	$	—		—	$	—	—	$	—		3,332	$	75.00	—	$	—	—	$	—		—	$	—	—	$	—
San Mateo	14,669	54.00			—	—		—	—			—	—		—	—		—	—			—	—		—	—
Foster City	9,037	69.00			—	—		—	—			—	—		—	—		—	—			—	—		—	—
Redwood Shores	5,758	65.39			20,219	61.31		—	—			—	—		—	—		—	—			—	—		—	—
Palo Alto	11,541	47.40			—	—		—	—			39,873	87.00		—	—		—	—			—	—		—	—
Santa Clara	18,469	46.39			—	—		—	—			—	—		—	—		—	—			—	—		—	—
North San Jose	39,238	38.16			—	—		—	—			—	—		—	—		—	—			—	—		—	—
Subtotal	98,712	$	47.55		20,219	$	61.31	—	$	—		43,205	$	86.07	—	$	—	—	$	—		—	$	—	—	$	—
Los Angeles, California
Hollywood	49,966	$	58.20	(4)	—	$	—	—	$	—		—	$	—	—	$	—	52,626	$	57.60	(4)	—	$	—	—	$	—
West Los Angeles	6,703	51.14			6,073	55.80		—	—			—	—		—	—		—	—			—	—		—	—
Subtotal	56,669	$	57.36		6,073	$	55.80	—	$	—		—	$	—	—	$	—	52,626	$	57.60		—	$	—	—	$	—
Total Uncommenced	166,879	$	50.06		36,926	$	48.31	91,357	$	38.00		43,205	$	86.07	—	$	—	52,626	$	57.60		—	$	—	28,287	$	36.00

QUARTERLY BACKFILLS—NEXT EIGHT QUARTERS(5)
	Q2 2017			Q3 2017			Q4 2017			Q1 2018				Q2 2018			Q3 2018			Q4 2018			Q1 2019
Location	SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)			SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)		SF	Starting Rent/sf (2)
Greater Seattle, Washington
Pioneer Square	—	$	—	775	$	30.00	—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	—	$	—	775	$	30.00	—	$	—	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—
San Francisco Bay Area, California
San Francisco	34,595	$	73.57	4,144	$	48.00	—	$	—	163,128	$	75.00	(6)	—	$	—	—	$	—	—	$	—	—	$	—
Palo Alto	5,660	84.86		—	—		—	—		—	—			—	—		—	—		—	—		—	—
North San Jose	20,262	39.74		—	—		—	—		—	—			19,027	39.36		—	—		8,652	39.36		—	—
Subtotal	60,517	$	63.30	4,144	$	48.00	—	$	—	163,128	$	75.00		19,027	$	39.36	—	$	—	8,652	$	39.36	—	$	—
Los Angeles, California
West Los Angeles	—	$	—	—	$	—	5,472	$	55.80	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—
Subtotal	—	$	—	—	$	—	5,472	$	55.80	—	$	—		—	$	—	—	$	—	—	$	—	—	$	—
Total Backfills	60,517	$	63.30	4,919	$	45.16	5,472	$	55.80	163,128	$	75.00		19,027	$	39.36	—	$	—	8,652	$	39.36	—	$	—
Total Uncommenced & Backfills	227,396	$	53.58	41,845	$	47.94	96,829	$	39.01	206,333	$	77.32		19,027	$	39.36	52,626	$	57.60	8,652	$	39.36	28,287	$	36.00

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

_____________________

(1) Consists of uncommenced leases, defined as new leases with respect to vacant space, executed on or prior to March 31, 2017 but with commencement dates after March 31, 2017 and within the next eight quarters. This table omits submarkets without any uncommenced leases over the next eight quarters.

(2) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease commencement date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements. Rent commencement dates do not reflect up-front free rents, if any.

(3) Saltchuk Resources, Inc. is anticipated to commence on November 2017.

(4) Netflix, Inc. is anticipated to commence 49,966 square feet May 2017, 52,626 square feet August 2018 and 39,327 square feet April 2019.

(5) Consists of backfill leases, defined as new leases with respect to occupied space, executed on or prior to March 31, 2017 but with commencement dates after March 31, 2017 and within the next eight quarters. This table omits submarkets without any backfill leases over the next eight quarters.

(6) This lease is anticipated to commence on March 2018.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

QUARTERLY OFFICE LEASE EXPIRATIONS—NEXT EIGHT QUARTERS(1)
	Q2 2017(2)				Q3 2017					Q4 2017					Q1 2018				Q2 2018				Q3 2018				Q4 2018					Q1 2019
Location	Expiring SF(3)		Rent/sf(4)		Expiring SF(3)		Rent/sf(4)			Expiring SF(3)		Rent/sf(4)			Expiring SF(3)		Rent/sf(4)		Expiring SF(3)		Rent/sf(4)		Expiring SF(3)		Rent/sf(4)		Expiring SF(3)		Rent/sf(4)			Expiring SF(3)		Rent/sf(4)
Greater Seattle, Washington
Lynnwood	—		$	—	—		$	—		6,049		$	20.50		2,343		$	20.76	1,756		$	20.50	—		$	—	21,155		$	28.27		—		$	—
Pioneer Square	774		—		—		—			3,260		33.00			—		—		2,624		30.80		—		—		10,050		34.50			145,279		28.61		(11)
Subtotal	774		$	—	—		$	—		9,309		$	24.88		2,343		$	20.76	4,380		$	26.67	—		$	—	31,205		$	30.28		145,279		$	28.61
San Francisco Bay Area, California
Foster City	24,563		$	42.11	5,577		$	56.96		4,893		$	45.34		11,507		$	44.67	12,806		$	55.89	2,366		$	39.85	63,998		$	40.20		10,939		$	59.82
Palo Alto	20,079		61.30		22,816		66.19			111,499		72.73		(7)	63,883		83.19		12,637		95.60		26,411		32.19		21,278		48.89			21,533		58.03
Redwood Shores	23,461		48.87		57,436		62.33			60,057		56.40			97,156		43.70		58,068		53.44		35,508		60.04		38,393		56.38			43,473		53.58
San Bruno	—		—		—		—			—		—			—		—		—		—		—		—		—		—			—		—
San Francisco	26,144		34.92		135,559		46.76		(5)	181,766		11.14		(8)	10,693		57.29		6,794		39.25		10,953		48.61		160,526		27.23		(10)	76,036		65.34
North San Jose	84,390		30.57		102,510		30.35		(6)	98,741		30.30			76,505		30.74		60,351		33.46		82,223		33.10		99,244		33.74			92,286		32.95
San Mateo	—		—		7,576		43.92			15,661		36.70			37,642		42.12		14,846		54.33		9,164		43.51		3,806		55.00			5,631		56.65
Milpitas	—		—		—		—			471,580		33.60		(9)	—		—		—		—		—		—		—		—			—		—
Santa Clara	—		—		27,342		33.37			13,018		41.52			6,652		45.48		19,691		40.31		1,098		51.14		12,384		48.25			3,823		46.07
Subtotal	178,637		$	38.65	358,816		$	44.88		957,215		$	35.20		304,038		$	49.09	185,193		$	48.13	167,723		$	40.46	399,629		$	35.79		253,721		$	50.20
Los Angeles, California
Burbank	—		$	—	—		$	—		17,262		$	41.87		3,413		$	45.89	—		$	—	—		$	—	—		$	—		—		$	—
Hollywood	2,664		65.95		—		—			—		—			10,000		50.50		—		—		87,272		43.68		—		—			7,559		92.20
Torrance	—		—		—		—			—		—			—		—		—		—		—		—		—		—			—		—
West Los Angeles	15,802		45.42		6,031		59.30			8,276		43.23			14,595		41.66		5,878		50.54		—		—		12,302		46.41			2,749		55.21
Subtotal	18,466		$	48.38	6,031		$	59.30		25,538		$	42.31		28,008		$	45.33	5,878		$	50.54	87,272		$	43.68	12,302		$	46.41		10,308		$	82.33
TOTAL	197,877		$	39.41	364,847		$	45.12		992,062		$	35.29		334,389		$	48.58	195,451		$	47.72	254,995		$	41.56	443,136		$	35.70		409,308		$	43.35
Expirations as % of In-Service Portfolio	1.5	%			2.8	%				7.6	%				2.6	%			1.5	%			2.0	%			3.4	%				3.1	%

______________________

(1) The following schedule does not reflect 154,170 square feet that expired on March 31, 2017.

(2) Q2 2017 expiring square footage does not include 72,030 square feet of month-to-month leases.

(3) Includes leases that expire on the last day of the quarter.

(4) Calculated by dividing (a) the product of (i) monthly base rental payments (defined as cash base rents (before abatements)) as of the lease commencement date, and (ii) 12, by (b) the leased square footage. Base rents do not include tenant reimbursements.

(5) The total expiring square footage consists of: (i) AIG, Inc. at Rincon Center for 132,600 square feet and (ii) Sorabol at Rincon Center for 2,959 square feet. Effective March 2018, Google Inc. is anticipated to occupy 166,460 square feet at Rincon Center which includes the entire space vacated by AIG, Inc.

(6) The top three expiring tenants based on annual base rent by property and square footage: (i) NTT America, Inc. at Concourse for 28,930 square feet; (ii) Mega Chips Technology at Gateway for 23,146 square feet; and (iii) Massachusetts Mutual Life Insurance Co. at Metro Plaza for 11,147 square feet.

(7) The top three expiring tenants based on annual base rent by property and square footage: (i) Robert Bosch, LLC at Foothill Research Center for 72,417 square feet; (ii) K&L Gates at Clocktower Square for 19,152 square feet; and (iii) Zoox, Inc. at 2180 Sand Hill Road for 18,773 square feet.

(8) The total expiring square footage consists of: (i) Bank of America at 1455 Market Street for 180,529 square feet and (iii) Pepe’s Taqueria at Rincon Center for 1,237 square feet.

(9) The total expiring square footage consists of Cisco Systems, Inc. at Campus Center for 471,580 square feet. This tenant has elected to exercise their early termination right effective December 31, 2017.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

(10) The top three expiring tenants based on annual base rent by property and square footage: (i) Burlington Coat Factory at 875 Howard Street for 94,505 square feet; (ii) Anaplan, Inc. at 625 Second Street for 38,775 square feet; and (iii) Hotel Tonight at 901 Market Street for 17,521 square feet.

(11) The total expiring square footage consists of: (i) Capital One at 83 King Street for 133,148 square feet; (ii) Maveron LCC at Merrill Place for 6,136 square feet; and (iii) Cowgirls, Inc. at Merrill Place for 5,995 square feet.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

OFFICE LEASE EXPIRATIONS—ANNUAL

Year of Lease Expiration	Expiring Leases	Square Footage of Expiring Leases	Percentage of Office Portfolio Square Feet		Annualized Base Rent(1)		Percentage of Office Portfolio Annualized Base Rent		Annualized Base Rent Per Square Foot(2)		Annualized Base Rent Per Square Foot at Expiration(3)
Vacant		1,511,523	11.0	%
2017(4)	149	1,708,956	12.4		$	64,165,839	12.1	%	$	37.55	$	38.33
2018	161	1,227,971	8.9		50,451,545		9.6		41.09		42.34
2019	140	1,779,116	12.9		76,825,265		14.6		43.18		45.80
2020	109	1,106,328	8.0		50,381,365		9.6		45.54		50.70
2021	83	1,690,033	12.2		69,458,947		13.2		41.10		46.01
2022	55	983,032	7.1		41,985,233		8.0		42.71		52.06
2023	25	786,649	5.7		30,169,447		5.7		38.35		45.43
2024	25	395,435	2.9		17,518,381		3.3		44.30		54.51
2025	12	655,484	4.7		32,170,075		6.1		49.08		60.05
2026	15	556,199	4.0		29,820,231		5.6		53.61		71.51
Thereafter	16	798,840	5.8		40,393,645		7.7		50.57		68.56
Building management use	26	157,202	1.1		—		—		—		—
Signed leases not commenced(5)	28	458,607	3.3		23,642,540		4.5		51.55		65.45
Total/Weighted Average(6)	844	13,815,375	100.0	%	$	562,982,513	100.0	%	$	42.83	$	49.19

______________________________

(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)) as of March 31, 2017, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(2) Annualized base rent per square foot for all lease expiration years 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 March 31, 2017.

(3) Annualized base rent per square foot at expiration for all lease expiration years 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 March 31, 2017.

(4) The 2017 expiring square footage includes the early termination of 471,850 square feet at Campus Center that was originally anticipated to expire in 2019.

(5) Annualized base rent per leased square foot and annualized base rent per square foot at expiration for signed leases not commenced, reflects uncommenced leases on space not occupied as of March 31, 2017 and is calculated as (i) base rental payments (defined as cash base rents (before abatements)) under uncommenced leases for vacant space as of March 31, 2017, divided by (ii) square footage under uncommenced leases as of March 31, 2017.

(6) Total expiring square footage does not include 72,030 square feet of month-to-month leases.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

FIFTEEN LARGEST OFFICE TENANTS

Tenant	Property	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
Google, Inc.(2)	Various	2	2	Various	305,729	2.2%	$	19,751,784	3.9%
Uber Technologies, Inc.(3)	Various	2	2	Various	330,057	2.4	16,028,792		3.2
Cisco Systems, Inc.(4)	Various	2	2	Various	474,576	3.4	15,946,113		3.2
Riot Games, Inc.(5)	Various	2	2	Various	286,629	2.1	15,563,610		3.1
Netflix, Inc.(6)	Icon	1	1	12/31/2026	275,791	2.0	14,892,714		2.9
Qualcomm	Skyport Plaza	2	1	7/31/2022	376,817	2.7	12,887,141		2.5
Salesforce.com(7)	Rincon Center	2	1	Various	261,250	1.9	12,771,888		2.5
Square, Inc.	1455 Market Street	1	1	9/27/2023	338,910	2.4	11,422,513		2.3
Stanford(8)	Various	4	3	Various	151,249	1.1	10,582,418		2.1
Warner Bros. Entertainment	Pinnacle II	1	1	12/31/2021	230,000	1.7	9,281,389		1.8
GSA(9)	Various	5	5	Various	202,097	1.5	9,012,876		1.8
Warner Music Group	Pinnacle I	1	1	12/31/2019	195,166	1.4	8,336,840		1.6
EMC Corporation(10)	Various	3	2	Various	294,756	2.1	7,863,690		1.6
NetSuite, Inc.(11)	Peninsula Office Park	2	1	Various	166,667	1.2	7,830,172		1.5
NFL Enterprises(12)	Various	2	2	6/30/2021	167,606	1.2	6,818,212		1.3
TOTAL		32	27		4,057,300	29.3%	$	178,990,152	35.3%

______________________________

(1) Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements)) under commenced leases as of March 31, 2017, by (ii) 12. Annualized base rent does not reflect tenant reimbursements.

(2) Google, Inc. is expected to take possession of an additional 166,460 square feet at our Rincon Center property during the first quarter of 2018 with an annualized base rent of $12,484,500. Google, Inc. expirations by property and square footage: (i) 207,857 square feet at 3400 Hillview expiring on November 30, 2021 and (ii) 97,872 square feet at Foothill Research Center expiring on February 28, 2025.

(3) Uber Technologies, Inc. expirations by property and square footage: (i) 20,246 square feet at Skyway Landing expiring March 31, 2017 and (ii) 309,811 square feet at 1455 Market Street expiring on February 28, 2025.

(4) Cisco Systems, Inc. expirations by property and square footage: (i) 471,580 square feet at Campus Center expiring on December 31, 2017 and (ii) 2,996 square feet at Concourse expiring March 31, 2018. This tenant elected to exercise their early termination right at Campus Center with respect to 471,850 square feet effective December 31, 2017.

(5) Riot Games, Inc. expirations by property and square footage: (i) 2,592 square feet at Shorebreeze expiring on November 30, 2017 and (ii) 284,037 square feet at Element LA expiring on March 31, 2030. This tenant may elect to exercise their early termination right at Element LA with respect to 284,037 square feet effective March 31, 2025.

(6) Netflix is expected to take possession of an additional 49,966 square feet at Icon during the second quarter of 2017, 52,626 square feet at CUE during the third quarter of 2018 and 39,327 square feet at CUE during the second quarter of 2019.

(7) Salesforce.com is expected to take possession of an additional 4,144 square feet during the third quarter of 2017. Expirations by square footage: (i) 78,872 square feet expiring on July 31, 2025; (ii) 83,372 square feet expiring on April 30, 2027; (iii) 93,028 square feet expiring on October, 31, 2028; and (iv) 5,978 square feet of month-to-month storage space. This tenant may elect to exercise their early termination right with respect to 74,966 square feet between August 1, 2021 and September 30, 2021.

(8) Stanford Expirations by property and square footage: (i) Board of Trustees Stanford 18,753 square feet at Page Mill Hill expiring February 28, 2019; (ii) Stanford Healthcare 63,201 square feet at Page Mill Center expiring June 30, 2019; (iii) Stanford University 26,080 square feet at Palo Alto Square expiring on December 31, 2019; and (iv) Board of Trustees Stanford 43,215 square feet at Page Mill Center expiring December 31, 2022.

(9) GSA expirations by property and square footage: (i) 71,729 square feet at 1455 Market Street expiring on February 19, 2019; (ii) 28,993 square feet at Northview Center expiring on April 4, 2020;

(iii) 33,582 square feet at Rincon Center expiring May 31, 2020; (iv) 49,405 square feet at 901 Market Street expiring on July 31, 2021; and (v) 18,388 square feet at Concourse expiring on May 7, 2024.

(10) EMC expirations by property and square footage: (i) 66,510 square feet at 875 Howard Street expiring on June 30, 2019; (ii) 185,292 square feet at 505 First Avenue expiring on October 18, 2021; and (iii) 42,954 square feet at 505 First Avenue expiring on December 31, 2023.

(11) NetSuite, Inc. expirations by square footage: (i) 37,597 square feet expiring on August 31, 2019; (ii) 129,070 square feet expiring on May 31, 2022.

(12) NFL Enterprises by property and square footage: (i) 157,687 square feet at 10950 Washington and (ii) 9,919 square feet at 10900 Washington. This tenant may elect to exercise their early termination right with respect to 167,606 square feet effective June 30, 2020.

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Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

OFFICE PORTFOLIO DIVERSIFICATION

Industry	Total Square Feet(1)	Annualized Rent as of Percent of Total
Technology	4,934,626	41.0	%
Media & Entertainment	1,846,752	16.8
Financial Services	938,748	7.1
Business Services	932,232	7.3
Legal	740,866	8.6
Other	625,378	4.3
Retail	583,508	3.6
Insurance	352,501	2.8
Government	301,228	2.4
Healthcare	197,649	2.1
Real Estate	171,696	1.4
Educational	168,489	1.8
Advertising	123,602	0.8
TOTAL	11,917,275	100.0	%

______________________________

(1) Does not include signed leases not commenced.

35

Hudson Pacific Properties, Inc.

First Quarter 2017 Supplemental Operating and Financial Information

DEFINITIONS

Funds From Operations (“FFO”): Funds From Operations before non-controlling interest (“FFO”) is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We calculate FFO in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding extraordinary items, as defined by GAAP, gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. The calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cost bonuses for certain employees.

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

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. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

Net Operating Income (“NOI”): We evaluate performance based upon property net operating income (“NOI”) from continuing operations. NOI is not a measure of operating results or cash flows from operating activities as measured by GAAP and should not be considered an alternative to income from continuing operations, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management, because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. We calculate net operating income as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, acquisition-related expenses and other non-operating items. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI on a GAAP basis, adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

36