10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

FORM 10-Q

______________________________________

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2017

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

Commission File Number: 001-34789 (Hudson Pacific Properties, Inc.)

Commission File Number: 333-202799-01 (Hudson Pacific Properties, L.P.)

______________________________________

Hudson Pacific Properties, Inc.

Hudson Pacific Properties, L.P.

(Exact name of registrant as specified in its charter)

Hudson Pacific Properties, Inc.	Maryland (State or other jurisdiction of incorporation or organization)	27-1430478 (I.R.S. Employer Identification Number)
Hudson Pacific Properties, L.P.	Maryland (State or other jurisdiction of incorporation or organization)	80-0579682 (I.R.S. Employer Identification Number)

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)

N/A

(Former name, former address and

former fiscal year, if changed since last report)

______________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    

Hudson Pacific Properties, Inc. Yes  x   No  o Hudson Pacific Properties, L.P. Yes  x   No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    

Hudson Pacific Properties, Inc. Yes  x   No  o Hudson Pacific Properties, L.P. Yes  x   No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Hudson Pacific Properties, Inc.

Large accelerated filer x	Accelerated filer o	Non-accelerated filer o
		(Do not check if a smaller reporting company)
Smaller reporting company o	Emerging growth company o

Hudson Pacific Properties, L.P

Large accelerated filer o	Accelerated filer o	Non-accelerated filer x
		(Do not check if a smaller reporting company)
Smaller reporting company o	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Hudson Pacific Properties, Inc. o Hudson Pacific Properties, L.P. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   

Hudson Pacific Properties, Inc.  Yes  o    No  x Hudson Pacific Properties, L.P. Yes  o    No  x

The number of shares of common stock of Hudson Pacific Properties, Inc. outstanding at May 1, 2017 was 156,051,418.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the three months ended March 31, 2017 of Hudson Pacific Properties, Inc., a Maryland corporation, and Hudson Pacific Properties, L.P., a Maryland limited partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” or “our Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.

Hudson Pacific Properties, Inc. is a real estate investment trust, or REIT, and the sole general partner of our operating partnership. As of March 31, 2017, Hudson Pacific Properties, Inc. owned approximately 99.6% of the outstanding common units of partnership interest (including unvested restricted units) in our operating partnership, or common units. The remaining approximately 0.4% of outstanding common units at March 31, 2017 were owned by certain of our executive officers and directors, certain of their affiliates, and other outside investors. As of December 31, 2016, certain affiliates of Blackstone Group L.P. (“Blackstone”) and Farallon Capital Management, LLC (“Farallon Funds”) held an ownership interest in the Company and the operating partnership. Following a common stock offering and a common unit repurchase on January 10, 2017, Blackstone and Farallon Funds informed us that they no longer owned common stock or common units in the Company or the operating partnership. As the sole general partner of our operating partnership, Hudson Pacific Properties, Inc. has the full, exclusive and complete responsibility for our operating partnership’s day-to-day management and control.

We believe combining the quarterly reports on Form 10-Q of Hudson Pacific Properties, Inc. and the operating partnership into this single report results in the following benefits:

• enhancing investors’ understanding of our Company and our operating partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;

• eliminating duplicative disclosure and providing a more streamlined and readable presentation because a substantial portion of the disclosure applies to both our Company and our operating partnership; and

• creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.

There are a few differences between our Company and our operating partnership, which are reflected in the disclosures in this report. We believe it is important to understand the differences between our Company and our operating partnership in the context of how we operate as an interrelated, consolidated company. Hudson Pacific Properties, Inc. is a REIT, the only material assets of which are the units of partnership interest in our operating partnership. As a result, Hudson Pacific Properties, Inc. does not conduct business itself, other than acting as the sole general partner of our operating partnership, issuing equity from time to time and guaranteeing certain debt of our operating partnership. Hudson Pacific Properties, Inc. itself does not issue any indebtedness but guarantees some of the debt of our operating partnership. Our operating partnership, which is structured as a partnership with no publicly traded equity, holds substantially all of the assets of our Company and conducts substantially all of our business. Except for net proceeds from equity issuances by Hudson Pacific Properties, Inc., which are generally contributed to our operating partnership in exchange for units of partnership interest in our operating partnership, our operating partnership generates the capital required by our Company’s business through its operations, its incurrence of indebtedness or through the issuance of units of partnership interest in our operating partnership.

Non-controlling interest, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of our Company and those of our operating partnership. The common units in our operating partnership are accounted for as partners’ capital in our operating partnership’s consolidated financial statements and, to the extent not held by our Company, as a non-controlling interest in our Company’s consolidated financial statements. The differences between stockholders’ equity, partners’ capital and non-controlling interest result from the differences in the equity issued by our Company and our operating partnership.

To help investors understand the significant differences between our Company and our operating partnership, this report presents the consolidated financial statements separately for our Company and our operating partnership. All other sections of this report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures About Market Risk,” are presented together for our Company and our operating partnership.

2

In order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that our Company and our operating partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, or the Exchange Act and 18 U.S.C. §1350, this report also includes separate Part I, Item 4 “Controls and Procedures” sections and separate Exhibit 31 and 32 certifications for each of Hudson Pacific Properties, Inc. and our operating partnership.

3

HUDSON PACIFIC PROPERTIES, INC.

HUDSON PACIFIC PROPERTIES, L.P.

FORM 10-Q

March 31, 2017

TABLE OF CONTENTS

		Page
PART I—FINANCIAL INFORMATION
ITEM 1.	Financial Statements of Hudson Pacific Properties, Inc.
	Consolidated Balance Sheets as of March 31, 2017 (Unaudited) and December 31, 2016	5
	Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2017 and 2016	6
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three months ended March 31, 2017 and 2016	7
	Consolidated Statements of Equity for the three months ended March 31, 2017 (Unaudited) and year ended December 31, 2016	8
	Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2017 and 2016	9
ITEM 1.	Financial Statements of Hudson Pacific Properties, L.P.
	Consolidated Balance Sheets as of March 31, 2017 (Unaudited) and December 31, 2016	10
	Consolidated Statements of Operations (Unaudited) for the three months ended March 31, 2017 and 2016	11
	Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the three months ended March 31, 2017 and 2016	12
	Consolidated Statements of Capital for the three months ended March 31, 2017 (Unaudited) and year ended December 31, 2016	13
	Consolidated Statements of Cash Flows (Unaudited) for the three months ended March 31, 2017 and 2016	14
	Notes to the Unaudited Consolidated Financial Statements	15
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	51
ITEM 4.	Controls and Procedures	52
PART II—OTHER INFORMATION
ITEM 1.	Legal Proceedings	54
ITEM 1A.	Risk Factors	54
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
ITEM 3.	Defaults Upon Senior Securities	55
ITEM 4.	Mine Safety Disclosures	55
ITEM 5.	Other Information	55
ITEM 6.	Exhibits	56
	Signatures	57

4

PART I—FINANCIAL INFORMATION

HUDSON PACIFIC PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

	March 31, 2017			December 31, 2016
	(unaudited)
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

The accompanying notes are an integral part of these consolidated financial statements.

5

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

The accompanying notes are an integral part of these consolidated financial statements.

6

HUDSON PACIFIC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
Net income	$	24,153		$	5,976
Other comprehensive income (loss): change in fair value of derivative instruments	2,864			(15,475		)
Comprehensive income (loss)	27,017			(9,499		)
Comprehensive income attributable to preferred units	(159		)	(159		)
Comprehensive income attributable to participating securities	(240		)	(197		)
Comprehensive income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Comprehensive (income) loss attributable to units in the operating partnership	(230		)	4,566
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders	$	23,351		$	(7,234	)

The accompanying notes are an integral part of these consolidated financial statements.

7

HUDSON PACIFIC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited, in thousands, except share data)

	Hudson Pacific Properties, Inc. Stockholders’ Equity
	Shares of Common Stock		Stock Amount			Additional Paid-in Capital			Accumulated Income (Deficit)			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest—Units in the Operating Partnership			Non-controlling Interest—Members in Consolidated Entities			Total Equity
Balance at January 1, 2016	89,153,780		$	891		$	1,710,979		$	(44,955	)	$	(1,081	)	$	1,800,578		$	262,625		$	3,729,037
Contributions	—		—			—			—			—			—			33,996			33,996
Distributions	—		—			—			—			—			—			(1,303		)	(1,303		)
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs	47,010,695		470			1,449,111			—			—			—			—			1,449,581
Issuance of unrestricted stock	590,520		6			—			—			—			—			—			6
Shares withheld to satisfy tax withholding	(262,760	)	(3		)	(8,424		)	—			—			—			—			(8,427		)
Declared dividend	—		—			(90,005		)	—			—			(27,814		)	—			(117,819		)
Amortization of stock-based compensation	—		—			13,609			—			—			1,045			—			14,654
Net income	—		—			—			27,984			—			5,848			9,290			43,122
Change in fair value of derivatives	—		—			—			—			10,577			(4,635		)	—			5,942
Redemption of common units in the operating partnership	—		—			34,124			—			—			(1,480,163		)	—			(1,446,039		)
Balance at December 31, 2016	136,492,235		1,364			3,109,394			(16,971		)	9,496			294,859			304,608			3,702,750
Contributions	—		—			—			—			—			—			103			103
Distributions	—		—			—			—			—			—			(310		)	(310		)
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs	18,656,575		187			647,488			—			—			—			—			647,675
Issuance of unrestricted stock	251,080		3			(3		)	—			—			—			—			—
Shares withheld to satisfy tax withholding	(120,261	)	(1		)	(4,202		)	—			—			—			—			(4,203		)
Declared dividend	—		—			(39,755		)	—			—			(164		)	—			(39,919		)
Amortization of stock-based compensation	—		—			3,432			—			—			669			—			4,101
Net income	—		—			—			20,755			—			202			3,037			23,994
Change in fair value of derivatives	—		—			—			—			2,836			28			—			2,864
Redemption of common units in the operating partnership	—		—			(24,535		)	—			(3,622		)	(282,698		)	—			(310,855		)
Balance at March 31, 2017	155,279,629		$	1,553		$	3,691,819		$	3,784		$	8,710		$	12,896		$	307,438		$	4,026,200

The accompanying notes are an integral part of these consolidated financial statements.

8

HUDSON PACIFIC PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	24,153		$	5,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,767			68,368
Amortization of deferred financing costs and loan premium, net	1,186			871
Amortization of stock-based compensation	3,902			3,342
Straight-line rents	2,366			(5,658		)
Straight-line rent expenses	381			529
Amortization of above- and below-market leases, net	(5,732		)	(4,851		)
Amortization of above- and below-market ground lease, net	637			535
Amortization of lease incentive costs	379			328
Bad debt expense	545			537
Amortization of discount and net origination fees on purchased and originated loans	—			(104		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Gains on sale of real estate	(16,866		)	(6,352		)
Change in operating assets and liabilities:
Restricted cash	7,177			(2,001		)
Accounts receivable	4,650			4,412
Deferred leasing costs and lease intangibles	(6,635		)	(5,420		)
Prepaid expenses and other assets	(1,072		)	(935		)
Accounts payable and accrued liabilities	12,378			3,084
Security deposits	1,031			430
Prepaid rent	(6,344		)	(6,319		)
Net cash provided by operating activities	92,897			58,897
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to investment property	(76,225		)	(54,415		)
Proceeds from sales of real estate	81,707			212,629
Contributions to unconsolidated entities	(1,071		)	—
Deposits for property acquisitions	(56,323		)	—
Net cash (used in) provided by investing activities	(51,912		)	158,214
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	—			30,000
Payments of notes payable	(300,642		)	(210,906		)
Proceeds from issuance of common stock, net	647,675			—
Payments for redemption of common units in the operating partnership	(310,855		)	—
Dividends paid to common stock and unitholders	(39,919		)	(29,802		)
Dividends paid to preferred unitholders	(159		)	(159		)
Contributions from non-controlling member in consolidated entities	103			103
Distributions to non-controlling member in consolidated entities	(310		)	(326		)
Payments to satisfy tax withholding	(4,203		)	(1,683		)
Payments of loan costs	—			(522		)
Net cash used in financing activities	(8,310		)	(213,295		)
Net increase in cash and cash equivalents	32,675			3,816
Cash and cash equivalents—beginning of period	83,015			53,551
Cash and cash equivalents—end of period	$	115,690		$	57,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	$	16,172		$	12,101
NON-CASH INVESTING ACTIVITIES:
Accounts payable and accrued liabilities for real estate investments	$	3,501		$	6,868

The accompanying notes are an integral part of these consolidated financial statements.

9

HUDSON PACIFIC PROPERTIES, L.P.

CONSOLIDATED BALANCE SHEETS

(in thousands, except unit data)

	March 31, 2017			December 31, 2016
	(unaudited)
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
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
CAPITAL
Partners’ capital:
Common units, 155,848,674 and 145,942,855 issued and outstanding at March 31, 2017 and December 31, 2016, respectively.	3,718,762			3,398,142
Non-controlling interest—members in consolidated entities	307,438			304,608
TOTAL CAPITAL	4,026,200			3,702,750
TOTAL LIABILITIES AND CAPITAL	$	6,701,761		$	6,678,998

The accompanying notes are an integral part of these consolidated financial statements.

10

HUDSON PACIFIC PROPERTIES, L.P.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in thousands, except unit 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 non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Net income attributable to Hudson Pacific Properties, L.P.	21,116			4,031
Series A preferred units distributions	(159		)	(159		)
Net income attributable to participating securities	(240		)	(197		)
Net income available to common unitholders	$	20,717		$	3,675
Basic and diluted per unit amounts:
Net income attributable to common unitholders—basic	$	0.14		$	0.03
Net income attributable to common unitholders—diluted	$	0.14		$	0.03
Weighted average shares of common units outstanding—basic	149,407,796			145,487,118
Weighted average shares of common units outstanding—diluted	150,334,796			145,894,118
Dividends declared per unit	$	0.250		$	0.200

The accompanying notes are an integral part of these consolidated financial statements.

11

HUDSON PACIFIC PROPERTIES, L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
Net income	$	24,153		$	5,976
Other comprehensive income (loss): change in fair value of derivative instruments	2,864			(15,475		)
Comprehensive income (loss)	27,017			(9,499		)
Comprehensive income attributable to preferred units	(159		)	(159		)
Comprehensive income attributable to participating securities	(240		)	(197		)
Comprehensive income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Comprehensive income (loss) attributable to partners’ capital	$	23,581		$	(11,800	)

The accompanying notes are an integral part of these consolidated financial statements.

12

HUDSON PACIFIC PROPERTIES, L.P.

CONSOLIDATED STATEMENTS OF CAPITAL

(Unaudited, in thousands, except unit data)

	Partners’ Capital
	Number of Common Units		Common Units			Non-controlling Interest—Members in Consolidated Entities			Total Capital
Balance at January 1, 2016	145,450,095		$	3,466,412		$	262,625		$	3,729,037
Contributions	—		—			33,996			33,996
Distributions			—			(1,303		)	(1,303		)
Proceeds from sale of common units, net of underwriters’ discount and transaction costs	47,010,695		1,449,581			—			1,449,581
Issuance of unrestricted units	590,520		6			—			6
Units withheld to satisfy tax withholding	(262,760	)	(8,427		)	—			(8,427		)
Declared distributions	—		(117,819		)	—			(117,819		)
Amortization of unit-based compensation	—		14,654			—			14,654
Net income	—		33,832			9,290			43,122
Change in fair value of derivative instruments	—		5,942			—			5,942
Redemption of common units	(46,845,695	)	(1,446,039		)	—			(1,446,039		)
Balance at December 31, 2016	145,942,855		3,398,142			304,608			3,702,750
Contributions	—		—			103			103
Distributions	—		—			(310		)	(310		)
Proceeds from sale of common units, net of underwriters’ discount and transaction costs	18,656,575		647,675			—			647,675
Issuance of unrestricted units	251,080		—			—			—
Units withheld to satisfy tax withholding	(120,261	)	(4,203		)	—			(4,203		)
Declared distributions	—		(39,919		)	—			(39,919		)
Amortization of unit-based compensation	—		4,101			—			4,101
Net income	—		20,957			3,037			23,994
Change in fair value of derivative instruments	—		2,864			—			2,864
Redemption of common units	(8,881,575	)	(310,855		)	—			(310,855		)
Balance at March 31, 2017	155,848,674		$	3,718,762		$	307,438		$	4,026,200

The accompanying notes are an integral part of these consolidated financial statements.

13

HUDSON PACIFIC PROPERTIES, L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Three Months Ended March 31,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	24,153		$	5,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,767			68,368
Amortization of deferred financing costs and loan premium, net	1,186			871
Amortization of unit-based compensation	3,902			3,342
Straight-line rents	2,366			(5,658		)
Straight-line rent expenses	381			529
Amortization of above- and below-market leases, net	(5,732		)	(4,851		)
Amortization of above- and below-market ground lease, net	637			535
Amortization of lease incentive costs	379			328
Bad debt (recovery) expense	545			537
Amortization of discount and net origination fees on purchased and originated loans	—			(104		)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125
Gains on sale of real estate	(16,866		)	(6,352		)
Change in operating assets and liabilities:
Restricted cash	7,177			(2,001		)
Accounts receivable	4,650			4,412
Deferred leasing costs and lease intangibles	(6,635		)	(5,420		)
Prepaid expenses and other assets	(1,072		)	(935		)
Accounts payable and accrued liabilities	12,378			3,084
Security deposits	1,031			430
Prepaid rent	(6,344		)	(6,319		)
Net cash provided by operating activities	92,897			58,897
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to investment property	(76,225		)	(54,415		)
Proceeds from sales of real estate	81,707			212,629
Contributions to unconsolidated entities	(1,071		)	—
Deposits for property acquisitions	(56,323		)	—
Net cash (used in) provided by investing activities	(51,912		)	158,214
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	—			30,000
Payments of notes payable	(300,642		)	(210,906		)
Proceeds from issuance of common units, net	647,675			—
Payments for redemption of common units	(310,855		)	—
Distributions paid to common unitholders	(39,919		)	(29,802		)
Distributions paid to preferred unitholders	(159		)	(159		)
Contributions from non-controlling member in consolidated entities	103			103
Distributions to non-controlling member in consolidated entities	(310		)	(326		)
Payments to satisfy tax withholding	(4,203		)	(1,683		)
Payments of loan costs	—			(522		)
Net cash used in financing activities	(8,310		)	(213,295		)
Net increase in cash and cash equivalents	32,675			3,816
Cash and cash equivalents—beginning of period	83,015			53,551
Cash and cash equivalents—end of period	$	115,690		$	57,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	$	16,172		$	12,101
NON-CASH INVESTING ACTIVITIES:
Accounts payable and accrued liabilities for real estate investments	$	3,501		$	6,868

The accompanying notes are an integral part of these consolidated financial statements.

14

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements

(Unaudited, tabular amounts in thousands, except square footage, share and unit data)

1. Organization

Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 that did not have any meaningful operating activity until the consummation of its initial public offering and the related acquisition of its predecessor and certain other entities on June 29, 2010 (“IPO”). Since the completion of the IPO, the concurrent private placement, and the related formation transactions, Hudson Pacific Properties, Inc. has been a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and media and entertainment properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to the “Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to the “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.

On April 1, 2015, the Company completed the acquisition of the EOP Northern California Portfolio (“EOP Acquisition”) from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Acquisition consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations, and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership.

As of March 31, 2017, the Company owned a portfolio of 52 office properties and two media and entertainment properties. These properties are located throughout Northern and Southern California and the Pacific Northwest.

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2017. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2016 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.

Certain amounts in the consolidated financial statements for the prior period have been reclassified to conform to the current period presentation. Specifically, in the Consolidated Balance Sheets for the prior period, certain amounts have been reclassified to held for sale. These amounts relate to 3402 Pico Boulevard, which was sold on March 21, 2017.

Principles of Consolidation

The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned subsidiaries and variable interest entities (“VIEs”), of which the Company is the primary beneficiary. The unaudited interim consolidated financial statements of the operating partnership include the accounts of the operating partnership, and all wholly owned subsidiaries and VIEs of which the operating partnership is the primary beneficiary. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

15

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

The Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Four of the Company’s joint ventures and its operating partnership meet the definition of a VIE. The Company is the primary beneficiary of and consolidates three of the joint ventures and the operating partnership. Refer to Note 16 for details. Substantially all of the assets and liabilities of the Company are related to these VIEs. The Company is not consolidating one of its joint ventures, of which it is not the primary beneficiary, and an interest in land. Due to its significant influence over these entities, the Company accounts for them using the equity method of accounting. Refer to Note 7 for details.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.

16

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of Accounting Standards Update (“ASU”). The following ASUs were adopted by the Company in the first quarter of 2017:

Standard	Description	Effect on the financial statements or other significant matters
ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update)	The guidance in this ASU is based on two SEC staff announcements made at the September 2016 and November 2016 EITF meetings. In the September meeting, the SEC announced that a registrant should disclose the potential material effects of the ASUs related to revenues, leases and credit losses on financial instruments. As a result of the November meeting, the ASU conforms Accounting Standards Codification (“ASC”) 323 to the guidance issued in ASU 2014-01 related to investments in qualified affordable housing projects.	With the adoption of this guidance, the Company is required to provide updates on its implementation of the ASUs related to revenue, leases and credit losses on financial instruments. Please refer to the table below for updates on the revenue and lease ASUs. The credit losses on financial instruments ASU is not anticipated to have a material impact on the Company.
ASU 2016-19, Technical Corrections and Improvements	The technical corrections make minor change to certain aspects of the FASB ASC, including changes to resolve differences between current and pre-Codification guidance, updates to wording, references to avoid misapplication and textual simplifications to increase the Codification’s utility and understandability and minor amendments to guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control	This guidance outlines how a single decisionmaker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE.	The adoption did not have a material impact on the Company’s consolidated financial statements and did not change the consolidation conclusion.
ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting	The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships	The guidance states that the novation of a derivative contract (e.g., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered.	The adoption did not have a material impact on the Company’s consolidated financial statements.

17

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

As required by ASU 2017-03, the Company is providing updates to the revenue and lease standard on a quarterly basis, as follows:    

Standard	Description	Effect on the financial statements or other significant matters
ASU related to Revenue from Contracts with Customers (Topic 606)	The new revenue standard was amended through various ASU’s. The ASU’s that impact the Company are ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and specifically notes that lease contracts with customers are a scope exception.	The Company does not expect this guidance to have a material effect on revenue recognition as it relates to its leasing contracts until the adoption of ASU 2016-02, at which time the standard may affect revenue recognition as it relates to certain non-lease revenue components that are part of its leasing contracts. The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently evaluating this standard as it relates to media and entertainment other property-related revenue. The Company has the option of adopting this standard on either the full retrospective basis (to the beginning of its contracts) or modified retrospective method (from the beginning of the latest fiscal year of adoption). The Company plans on adopting the standard January 1, 2018 using the modified retrospective method.
ASU 2016-02, Leases	This guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting will not be fundamentally changed.	The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently in the process of evaluating the amount of assets and liabilities relating to right of use that will need to be recorded with respect to its leases where it is the lessee. Additionally, the standard will impact the way the Company will record revenue and leasing costs where it is the lessor. For leasing costs, the Company will no longer be able to capitalize internal leasing costs to the extent they are not directly attributable to the lease transaction. Accordingly, the Company anticipates that internal leasing costs will be expensed with the adoption of this standard. With respect to the lease revenue, the Company will need to break down its current revenue streams between leasing and non-leasing components. To the extent there are non-leasing components the Company will need to record them in accordance with ASC 606 (see above). The Company is still in the process of evaluating its existing leasing components to determine what effect, if any, this standard will have on its revenue recognition as it relates to its leases. The Company will adopt the standard using the retrospective method from the beginning of the first year presented on the consolidated statement of operations which is January 1, 2017.

The Company considers the applicability and impact of all ASUs. The following table lists the recently issued ASUs that have not been disclosed in the Company’s Annual Report on Form 10-K and have not been adopted by the Company. The list excludes those ASUs that are expected to have an immaterial impact on the Company’s consolidated financial statements.

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets	The guidance clarifies the scope of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales.	Effective for annual reporting periods (including interim periods) beginning after December 15, 2017	The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements and plans to adopt this guidance in the first quarter in 2018.

18

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

3. Investment in Real Estate

Acquisitions

The Company’s acquisitions are accounted for using the acquisition method. The results of operations for each of these acquisitions are included in the Company’s Consolidated Statements of Operations from the date of acquisition.

The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions.

The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. The fair value of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, and legal and other related costs.

The Company had no acquisitions during the three months endedMarch 31, 2017.

On May 1, 2017, the Company completed its acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios) located in Hollywood, California. See Note 19 for details.

Dispositions

The following table summarizes the properties sold during the three months endedMarch 31, 2017. These properties were non-strategic assets to the Company’s portfolio:

Property	Date of Disposition	Square Feet	Sales Price(1) (in millions)
222 Kearny Street	February 14, 2017	148,797	$	51.8
3402 Pico Boulevard	March 21, 2017	50,687	35.0
Total dispositions		199,484	$	86.8

_________________ 

(1) Represents gross sales price before certain credits, prorations and closing costs.

The dispositions of these properties resulted in gains of $16.9 million for the three months endedMarch 31, 2017. These amounts are included in gains on sale of real estate in the Consolidated Statements of Operations.

Held for Sale

The Company had two properties held for sale as of December 31, 2016. Both properties were disposed of during the first quarter of 2017. The Company had no properties classified as held for sale as of March 31, 2017.

19

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Cost Capitalization

The Company recognized the following capitalized costs during the periods presented:

	Three Months Ended March 31,
	2017		2016
Capitalized personnel costs	$	2,737	$	2,319
Capitalized interest	2,446		2,628

Impairment of Long-Lived Assets

No impairment indicators have been noted and the Company recorded no impairment charges for the three months endedMarch 31, 2017.

4. Deferred Leasing Costs and Lease Intangibles, net

The following summarizes the Company’s deferred leasing costs and lease intangibles as of:

	March 31, 2017			December 31, 2016
Above-market leases	$	22,823		$	23,430
Accumulated amortization	(13,738		)	(12,989		)
Above-market leases, net	9,085			10,441
Deferred leasing costs and in-place lease intangibles	376,056			378,540
Accumulated amortization	(154,381		)	(145,551		)
Deferred leasing costs and in-place lease intangibles, net	221,675			232,989
Below-market ground leases	71,423			71,423
Accumulated amortization	(5,538		)	(4,891		)
Below-market ground leases, net	65,885			66,532
Deferred leasing costs and lease intangible assets, net	$	296,645		$	309,962
Below-market leases	$	138,549		$	141,676
Accumulated amortization	(66,511		)	(62,552		)
Below-market leases, net	72,038			79,124
Above-market ground leases	1,095			1,095
Accumulated amortization	(100		)	(89		)
Above-market ground leases, net	995			1,006
Lease intangible liabilities, net	$	73,033		$	80,130

20

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

The Company recognized the following amortization related to deferred leasing costs and lease intangibles:

	Three Months Ended March 31,
	2017		2016
Above-market leases(1)	$	1,356	$	3,719
Below-market leases(1)	7,088		8,570
Deferred leasing costs and in-place lease intangibles(2)	19,793		22,568
Above-market ground leases(3)	11		11
Below-market ground leases(3)	648		546

__________________ 

(1) Amortization is recorded in office rental income in the Consolidated Statements of Operations.

(2) Amortization is recorded in depreciation and amortization expense and office rental income in the Consolidated Statements of Operations.

(3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations.

5. Accounts Receivable, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company's 2016 Annual Report on Form 10-K. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Accounts receivable	$	4,306		$	8,697
Allowance for doubtful accounts	(2,297		)	(1,845		)
Accounts receivable, net	$	2,009		$	6,852

6. Straight-line Rent Receivables, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company’s 2016 Annual Report on Form 10-K. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Straight-line rent receivables	$	87,228		$	87,417
Allowance for doubtful accounts	(2,378		)	(136		)
Straight-line rent receivables, net	$	84,850		$	87,281

21

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

7. Investment in Unconsolidated Entities    

Investment in unconsolidated real estate in which the Company has the ability to exercise significant influence (but not control) is accounted for under the equity method of investment. Under the equity method, the Company initially records the investment at cost, and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment is reflected within investment in unconsolidated entities on the Consolidated Balance Sheets, and the Company’s share of net income or loss from the entity is included within other (income) expense on the Consolidated Statements of Operations.

On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The Company holds a 21% interest in the joint venture. The assets of the joint venture consist of the notes receivable. The Company’s investment in this joint venture was $30.7 million and $29.4 million as of March 31, 2017 and December 31, 2016, respectively, which represents the maximum exposure for loss for the Company. The joint venture meets the criteria of a VIE and the Company accounts for this investment under the equity method of accounting since the Company is not the primary beneficiary.

On July 1, 2016, the Company entered into an agreement with an unaffiliated third party related to the land on which its 11601 Wilshire property is located. The Company holds a 28% interest in the land. The agreement does not meet the definition of a VIE and the Company accounts for its interest in the land under the equity method of accounting. The Company’s interest in the land was $7.8 million as of March 31, 2017 and December 31, 2016. On December 27, 2016, the Company entered into an agreement to purchase the remaining interest in the land for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.

8. Goodwill

The Company’s goodwill balance as of March 31, 2017 and December 31, 2016 was $8.8 million. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. No impairment indicators have been noted during the three months endedMarch 31, 2017.

9. Notes Payable, net

The following table summarizes the balances of the Company’s indebtedness as of:

	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 the Company’s 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. 

22

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

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
UNSECURED LOANS
Unsecured Revolving Credit Facility(2)	$	—	$	—		$	300,000	$	—		LIBOR+ 1.15% to 1.85%	4/1/2019	(3)
5-Year Term Loan due April 2020(2)(4)	450,000		(3,243		)	450,000		(3,513		)	LIBOR+ 1.30% to 2.20%	4/1/2020
5-Year Term Loan due November 2020(2)	175,000		(697		)	175,000		(745		)	LIBOR +1.30% to 2.20%	11/17/2020
7-Year Term Loan due April 2022(2)(5)	350,000		(2,157		)	350,000		(2,265		)	LIBOR+ 1.60% to 2.55%	4/1/2022
7-Year Term Loan due November 2022(2)(6)	125,000		(892		)	125,000		(931		)	LIBOR +1.60% to 2.55%	11/17/2022
Series A Notes	110,000		(891		)	110,000		(930		)	4.34%	1/2/2023
Series E Notes	50,000		(289		)	50,000		(300		)	3.66%	9/15/2023
Series B Notes	259,000		(2,207		)	259,000		(2,271		)	4.69%	12/16/2025
Series D Notes	150,000		(874		)	150,000		(898		)	3.98%	7/6/2026
Series C Notes	56,000		(527		)	56,000		(539		)	4.79%	12/16/2027
TOTAL UNSECURED LOANS	1,725,000		(11,777		)	2,025,000		(12,392		)
MORTGAGE LOANS
Mortgage Loan secured by Rincon Center(7)	99,897		(158		)	100,409		(198		)	5.13%	5/1/2018
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios	5,001		(1,357		)	5,001		(1,534		)	LIBOR+2.25%	3/4/2019	(3)
Mortgage Loan secured by Met Park North(8)	64,500		(370		)	64,500		(398		)	LIBOR+1.55%	8/1/2020
Mortgage Loan secured by 10950 Washington(7)	27,798		(337		)	27,929		(354		)	5.32%	3/11/2022
Mortgage Loan secured by Pinnacle I(9)(10)	129,000		(567		)	129,000		(593		)	3.95%	11/7/2022
Mortgage Loan secured by Element LA	168,000		(2,256		)	168,000		(2,321		)	4.59%	11/6/2025
Mortgage Loan secured by Pinnacle II(10)	87,000		(701		)	87,000		(720		)	4.30%	6/11/2026
Mortgage Loan secured by Hill7(11)	101,000		(1,285		)	101,000		(1,319		)	3.38%	11/6/2026
TOTAL MORTGAGE LOANS	682,196		(7,031		)	682,839		(7,437		)
TOTAL	$	2,407,196	$	(18,808	)	$	2,707,839	$	(19,829	)

_________________

(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) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2017, no such election had been made.

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

(4) 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. See Note 10 for details.

(5) 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. See Note 10 for details.

(6) 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. See Note 10 for details.

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

(8) 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. See Note 10 for details.

(9) 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.

(10) The Company owns 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.

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

23

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Indebtedness

The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, such as in the case of the project financing for Sunset Gower Studios and Sunset Bronson Studios, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates.

Loan agreements include events of default that the Company believes are usual for loan and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans.

The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the operating partnership’s secured and unsecured notes payable as of March 31, 2017:

Year	Annual Principal Payments
Remaining 2017	$	2,071
2018	101,157
2019	7,886
2020	692,493
2021	3,142
Thereafter	1,600,447
Total	$	2,407,196

Unsecured Revolving Credit Facility

The operating partnership’s unsecured revolving credit facility is amended from time to time. The terms of the arrangement are more fully described in the Company’s 2016 Annual Report on Form 10-K. Under the unsecured revolving credit facility, as amended and restated to date (“Amended and Restated Credit Facility”), the Company has $400.0 million of total capacity. The maturity date of April 1, 2019 can be extended with a one-year extension option. The Company uses the unsecured revolving credit facility to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures, and to provide for working capital and other corporate purposes.

Interest on the Amended and Restated Credit Facility is generally based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) a specified base rate plus the applicable base rate margin, dependent on the operating partnership’s leverage ratio. The applicable LIBOR margin will range from 1.15% to 1.85% for the Amended and Restated Credit Facility, 1.30% to 2.20% for the 5-Year Term Loan due April 2020, depending on the operating partnership’s leverage ratio and 1.60% to 2.55% for the 7-Year Term Loan due April 2022, depending on the operating partnership’s leverage ratio. The Amended and Restated Credit Facility requires a facility fee in an amount equal to 0.20% or 0.35% of the operating partnership’s revolving credit commitments depending on the operating partnership’s leverage ratio. Unused amounts under the Amended and Restated Credit Facility are not subject to a separate fee.

Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the availability of the Amended and Restated Credit Facility so long as the aggregate commitments under the Amended and Restated Credit Facility do not exceed $2.0 billion.

If the Company obtains a credit rating for the Company’s senior unsecured long-term indebtedness, the operating partnership may make an irrevocable election to change the interest rate and facility fee. During 2016, the Company’s senior unsecured long-term indebtedness was assigned an investment grade rating. The Company has not made the credit rating election.

The operating partnership continues to be the borrower under the Amended and Restated Credit Facility, and the Company and all subsidiaries that own unencumbered properties will continue to provide guarantees unless the Company obtains and maintains a credit rating of at least BBB- from S&P or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. 

24

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Debt Covenants

The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements, including, when considering the most restrictive terms, maintaining a leverage ratio (maximum of 0.60:1.00), unencumbered leverage ratio (maximum of 0.60:1.00), fixed charge coverage ratio (minimum of 1.50:1.00), secured indebtedness leverage ratio (maximum of 0.45:1.00), and unsecured interest coverage ratio (minimum 2.00:1.00). Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business, and other customary affirmative and negative covenants.

The operating partnership was in compliance with its financial covenants as of March 31, 2017.

Repayment Guaranties

Sunset Gower Studios and Sunset Bronson Studios Loan

In connection with the loan secured by the Sunset Gower Studios and Sunset Bronson Studios properties, the Company has guaranteed in favor of and promised to pay to the lender 19.5% of the principal payable under the loan in the event the borrower, a wholly-owned entity of the operating partnership, does not do so. As of March 31, 2017, the outstanding balance was $5.0 million, which results in a maximum guarantee amount for the principal under this loan of $1.0 million. Furthermore, the Company agreed to guarantee the completion of the construction improvements, including tenant improvements, as defined in the agreement, in the event of any default of the borrower. If the borrower fails to complete the remaining required work, the guarantor agrees to perform timely all of the completion obligations, as defined in the agreement. As of the date of this filing, there has been no event of default associated with this loan.

Other Loans

Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities.

10. Derivative Instruments

The Company enters into derivative instruments in order to hedge interest rate risk. The Company had six interest rate swaps with aggregate notional amounts of $839.5 million as of March 31, 2017 and December 31, 2016. These derivative instruments were designated as effective cash flow hedges for accounting purposes. There is no impact on the Company’s Consolidated Statements of Cash Flows.

The Company’s derivative instruments are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments.

5-Year Term Loan due April 2020 and 7-Year Term Loan due April 2022

On April 1, 2015, the Company effectively hedged $300.0 million of the 5-Year Term Loan due April 2020 through two interest rate swaps, each with a notional amount of $150.0 million, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.36% through the loan’s maturity. Therefore the interest rate is effectively fixed at 2.66% to 3.56%, depending on the Company’s leverage ratio. The unhedged portion bears interest at a rate equal to one-month LIBOR plus 1.30% to 2.20%, depending on the Company’s leverage ratio.

The Company also effectively hedged its $350.0 million7-Year Term Loan due April 2022 through two interest rate swaps, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.61% through the loan’s maturity. Therefore the interest rate is effectively fixed at 3.21% to 4.16% depending on the Company’s leverage ratio.

25

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

In July 2016, the derivative instruments described above were amended to include a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative instruments. Therefore, the effective interest rate increased to a range of 2.75% to 3.65% with respect to $300.0 million of the 5-Year Term Loan due April 2020 and 3.36% to 4.31% with respect to the 7-year Term Loan due April 2022, in each case, per annum. The interest rate within the range is based on the operating partnership’s leverage ratio. The amount included in accumulated other comprehensive income (loss) prior to the de-designation is amortized into interest expense over the remaining original terms of the derivative instruments.

The Company recognized an unrealized gain of $6 thousand and an unrealized loss of $2.1 million for the three months endedMarch 31, 2017 and 2016, respectively, on the Consolidated Statement of Operations related to the ineffective portion of these derivative instruments.

7-Year Term Loan due November 2022

On May 3, 2016, the Company entered into a derivative instrument with respect to $125.0 million of the 7-Year Term Loan due November 2022. This derivative instrument became effective on June 1, 2016 and swapped one-month LIBOR, which includes a 0.00% floor, to a fixed rate of 1.43% through the loan’s maturity.

Met Park North

OnJuly 31, 2013, the Company closed a seven-year loan totaling $64.5 million with Union Bank, N.A., secured by the Met Park North property. The loan bears interest at a rate equal to one-month LIBOR plus 1.55%. The full loan is subject to an interest rate contract that swaps one-month LIBOR to a fixed rate of 2.16% through the loan’s maturity on August 1, 2020.

Overall

The fair market value of derivative instruments is presented on a gross basis in the Consolidated Balance Sheets. The derivative assets as of March 31, 2017 and December 31, 2016 were $8.6 million and $5.9 million, respectively. The derivative liabilities as of March 31, 2017 and December 31, 2016 were $1.0 million and $1.3 million, respectively.

The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2017, the Company expects $3.0 million of unrealized loss included in accumulated other comprehensive loss will be reclassified to interest expense in the next 12 months.

11. Income Taxes

Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. Provided that it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders. The Company has elected, together with one of its subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes.

The Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market Street and Hill7 properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities.

The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2017, the Company has not established a liability for uncertain tax positions.

The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2012. Generally, the Company has assessed its tax positions for all open years, which include 2012 to 2016, and concluded that there are no material uncertainties to be recognized.

26

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

12. Future Minimum Base Rents and Lease Payments Future Minimum Rents

The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2017 to 2033. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties as of March 31, 2017:

Year	Noncancellable		Subject to Early Termination Options		Total (1)
Remaining 2017	$	365,799	$	380	$	366,179
2018	457,963		23,024		480,987
2019	415,324		29,301		444,625
2020	340,628		20,368		360,996
2021	284,972		28,062		313,034
Thereafter	884,701		138,486		1,023,187
Total	$	2,749,387	$	239,621	$	2,989,008

_________________

(1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less.

27

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Future Minimum Lease Payments

The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations:

Property	Expiration Date	Notes
11601 Wilshire	10/31/2064	Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in Consumer Price Index (“CPI”). On December 27, 2016, the Company entered into an agreement to purchase the land related to this ground lease for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.
3400 Hillview	10/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income multiplied by 24.125%. This lease has been prepaid through October 31, 2017.
9300 Wilshire	8/14/2032	The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%.
Clocktower Square	9/26/2056	Minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent.
Del Amo Office	6/30/2049	Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease.
Foothill Research Center	6/30/2039	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%.
Lockheed	7/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%.
Metro Center	4/29/2054	Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013).
Page Mill Center	11/30/2041	Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent.
Page Mill Hill	11/17/2049	Minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years.
Palo Alto Square	11/30/2045	Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent.
Sunset Gower Studios	3/31/2060	Every 7 years rent adjusts to 7.5% of FMV of the land.
Techmart Commerce Center	5/31/2053	Subject to a 10% increase every 5 years.

Contingent rental expense is recorded in the period in which the contingent event becomes probable. The Company recognized rent for ground leases and a corporate office lease as follows:

	Three Months Ended March 31,
	2017		2016
Contingent rental expense	$	2,184	$	2,337
Minimum rental expense	3,196		3,497

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Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2017:

Years	Ground Leases (1)(2)
Remaining 2017	$	9,837
2018	14,613
2019	14,663
2020	14,663
2021	14,684
Thereafter	429,386
Total	$	497,846

_________________

(1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments, and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2017.

(2) Balance includes future minimum ground lease obligation for 11601 Wilshire. On December 27, 2016, the Company entered into an agreement to purchase the land related to the 11601 Wilshire ground lease. This transaction is expected to close in the third quarter of 2017, however, there can be no guaranty that the transaction will close.

13. Fair Value of Financial Instruments

The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

• Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

The Company measures fair value of financial instruments using Level 2 inputs categorized within the fair value framework. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:

	March 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Derivative assets	$	—	$	8,558	$	—	$	8,558	$	—	$	5,935	$	—	$	5,935
Derivative liabilities	—		967		—		967		—		1,303		—		1,303

Other Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s notes payable as of:

	March 31, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable(1)	$	2,407,196	$	2,381,057	$	2,707,839	$	2,681,134

_________________

(1) Amounts represent total notes payable excluding net deferred financing costs.

29

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

14. Stock-Based Compensation

The Company has various stock compensation arrangements, which are more fully described in the 2016 Annual Report on Form 10-K. Under the 2010 Incentive Plan, as amended (the “2010 Plan”), the Company’s board of directors (the “Board”) has the ability to grant, among other things, restricted stock, restricted stock units and performance-based awards.

The Board awards restricted shares to non-employee board members on an annual basis as part of such board members’ annual compensation and to newly elected non-employee board members in accordance with the Board compensation program. The time-based awards are generally issued in the second quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years.

The Board awards time-based restricted shares to employees on an annual basis as part of the employees’ annual compensation. The time-based awards are generally issued in the fourth quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain restricted share awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer.

In December 2015, the Compensation Committee of the Board awarded a one-time special retention award to certain executives. The grants consist of time-based awards and performance-based awards. The time-based awards vest in equal 25% installments over four years, subject to the participant’s continued employment. The performance-based awards vest over a four-year period, subject to the achievement of applicable performance goals and the participant’s continued employment.

The Compensation Committee of the Board annually adopts a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under the 2010 Plan. An award under the OPP Plan is ultimately earned to the extent the Company outperforms a predetermined total shareholder return (“TSR”) goal and/or achieves goals with respect to the outperformance of its peers in a particular REIT index. The ultimate aggregate award cannot exceed the predetermined maximum bonus pool. With respect to OPP Plan awards granted prior to 2017, to the extent an award is earned following the completion of a three-year performance period, 50% of the earned award will vest in full at the end of the three-year performance period and 25% of the earned award will vest in equal annual installments over the two years thereafter, subject to the participant’s continued employment. OPP Plan awards granted are settled in common stock and in the case of certain executives, awards are settled in performance units in the operating partnership. In February 2017, the Compensation Committee adopted the 2017 OPP Plan. The 2017 OPP Plan is substantially similar to the previous OPP Plans except for (i) the performance period is January 1, 2017 to December 31, 2019 (ii) the maximum bonus pool is $20.0 million and (iii) the two -year post-performance vesting period was replaced with a two-year mandatory holding period upon vesting.

The per unit fair value of 2017 OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation:

Expected price volatility for the Company	24.00%
Expected price volatility for the particular REIT index	17.00%
Risk-free rate	1.47%
Dividend yield	2.30%

The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards:     

	Three Months Ended March 31,				Consolidated Financial Statement Classification
	2017		2016
Expensed stock compensation	$	3,902	$	3,342	General and administrative expenses
Capitalized stock compensation	199		82		Deferred leasing costs and lease intangibles, net and tenant improvements
Total stock compensation	$	4,101	$	3,424	Additional paid-in capital and non-controlling interest—units in the operating partnership

30

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

15. Earnings Per Share

The Company calculates basic earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based RSUs and unvested OPP awards that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders:

	Three Months Ended March 31,
	2017			2016
Numerator:
Net income	$	24,153		$	5,976
Income attributable to preferred units	(159		)	(159		)
Income attributable to participating securities	(240		)	(197		)
Income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Income attributable to non-controlling units of the operating partnership	(202		)	(1,422		)
Basic net income available to common stockholders	20,515			2,253
Effect of dilutive instruments	149			—
Diluted net income available to common stockholders	$	20,664		$	2,253
Denominator:
Basic weighted average common shares outstanding	147,950,594			89,190,803
Effect of dilutive instruments(1)	1,999,752			407,000
Diluted weighted average common shares outstanding	149,950,346			89,597,803
Basic earnings per common share	$	0.14		$	0.03
Diluted earnings per common share	$	0.14		$	0.03

________________

(1) The Company includes unvested awards and convertible common units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.

16. Equity

The table below present the effect of the Company’s derivative instruments on accumulated other comprehensive income (“OCI”):

	Hudson Pacific Properties, Inc. Stockholders’ Equity			Non-controlling Interest—Units in the Operating Partnership			Total Equity
Balance at January 1, 2017	$	9,496		$	(3,618	)	$	5,878
Unrealized gain recognized in OCI due to change in fair value	1,148			11			1,159
Loss reclassified from OCI into income (as interest expense)	1,688			17			1,705
Net change in OCI related to derivative instruments	2,836			28			2,864
Reclassification related to redemption of common units in the operating partnership	(3,622		)	3,622			—
Balance at March 31, 2017	$	8,710		$	32		$	8,742

31

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Non-controlling Interests

Common units in the operating partnership

Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of the Company’s common stock in exchange for common units on a one-for-one basis. There were 569,045 and 9,450,620 common units outstanding as of March 31, 2017 and December 31, 2016, respectively. On January 10, 2017, common unitholders required the operating partnership to repurchase 8,881,575 common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the repurchase. The Company funded the repurchase using the proceeds from a registered underwritten public offering of common stock.

Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one unit of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis.

The operating partnership meets the criteria of a VIE and the Company is the primary beneficiary of the operating partnership.

Non-controlling interest—members in consolidated entities

The Company has an interest in a joint venture with Media Center Partners, LLC (the “Pinnacle JV”). The Pinnacle JV owns the Pinnacle, a two-building (Pinnacle I and Pinnacle II), 625,640-square-foot office property located in Burbank, California. The Company initially owned a 98.25% interest in the Pinnacle JV. Beginning June 2013, the Company owns a 65% interest in the Pinnacle JV.

In January 2015, the Company entered into a joint venture with Canada Pension Plan Investment Board, (“CPPIB”) through which CPPIB purchased a 45% interest in the 1455 Market Street office property located in San Francisco, California, for a purchase price of $219.2 million (before certain credits, proration and closing costs). The Company owns a 55% interest in the 1455 Market Street office property.

In October 2016, the Company entered into another joint venture with CPPIB to purchase the Hill7 office property located in Seattle, Washington for a purchase price of $179.8 million (before credits, prorations and closing costs). The Company owns a 55% interest in the Hill7 office property.

These joint ventures, of which the Company is the primary beneficiary, meet the criteria of a VIE.

6.25% Series A cumulative redeemable preferred units of the operating partnership

6.25% Series A cumulative redeemable preferred units of the operating partnership are 407,066 Series A preferred units of partnership interest in the operating partnership, or Series A preferred units, which are not owned by the Company. These Series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock, after June 29, 2013. For a description of the conversion and redemption rights of the Series A preferred units, please see “Description of the Partnership Agreement of Hudson Pacific Properties, L.P.—Material Terms of Our Series A Preferred Units” in the Company’s June 23, 2010 Prospectus.

32

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Common Stock Activity

On January 10, 2017, the Company completed a public offering of 8,881,575 shares of common stock of Hudson Pacific Properties, Inc. Proceeds from the offering were used to repurchase common units in the operating partnership.

On March 3, 2017, the Company completed another public offering of 9,775,000 shares of common stock. Proceeds from the offering were used to fully repay a $255.0 million balance outstanding under its unsecured revolving credit facility, with the remaining proceeds used for general corporate purposes.

The Company’s at-the-market, or ATM, program permits sales of up to $125.0 million of stock, $20.1 million of which has been sold as of March 31, 2017. The Company did not utilize the ATM program in the first quarter of 2017.

Share repurchase program

On January 20, 2016, the Board authorized a share repurchase program to buy up to $100.0 million of the outstanding common stock of Hudson Pacific Properties, Inc. No share repurchases have been made as of March 31, 2017.

Dividends

During the first quarter of 2017, the Company declared dividends on its common stock and non-controlling common partnership interests of $0.250 per share and unit. The Company also declared dividends on its Series A preferred partnership interests of $0.3906 per unit. The first quarter dividends were paid on March 30, 2017 to holders of record on March 20, 2017.

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation.

17. Related Party Transactions

Employment Agreements

The Company has entered into employment agreements with certain executive officers, effective January 1, 2016, that provide for various severance and change in control benefits and other terms and conditions of employment.

Lease and Subsequent Purchase of Corporate Headquarters from Blackstone

On July 26, 2006, the Company’s predecessor, Hudson Capital, LLC, entered into a lease agreement and subsequent amendments with landlord Trizec Holdings Cal, LLC (an affiliate of Blackstone) for the Company’s corporate headquarters at 11601 Wilshire Boulevard. The Company amended the lease to increase its occupancy to 40,120 square feet commencing on September 1, 2015. On December 16, 2015, the Company entered into an amendment of that lease to expand the space to approximately 42,371 square feet and to extend the term by an additional three years, to a total of ten years, through August 31, 2025. On July 1, 2016, the Company purchased the 11601 Wilshire property from funds managed by Blackstone for $311.0 million (before credits, prorations and closing costs).

JMG Capital Lease at 11601 Wilshire

JMG Capital Management LLC leases approximately 6,638 square feet at the Company’s 11601 Wilshire property pursuant to an eight-year lease at an aggregate rate of approximately $279 thousand annualized rent per year. Jonathan M. Glaser, a director on the Board, is the founder and managing member of JMG Capital Management LLC. JMG Capital Management LLC was a tenant of the property at the time it was purchased by the Company.

33

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

222 Kearny Street Disposition

On February 14, 2017, the Company sold its 222 Kearny Street property to a joint venture, a partner of which is an affiliate of the Farallon Funds. Richard B. Fried, a director on the Board, is a managing member of the Farallon Funds.

Agreements Related to EOP Acquisition

On April 1, 2015, the Company completed the EOP Acquisition from certain affiliates of Blackstone, which consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. In connection with the EOP Acquisition, the Company, the operating partnership and Blackstone entered into a stockholders agreement, which conferred Blackstone certain rights, including the right to nominate up to three of the Company’s directors. Additionally, the Company entered into a registration rights agreement with Blackstone providing for customary registration rights with respect to the equity consideration paid in the EOP Acquisition. Following a common stock offering and common unit repurchase on January 10, 2017, the stockholders agreement and the registration rights agreement automatically terminated on that date.

Common Stock Offerings and Common Unit Redemptions

On January 10, 2017, the Company, Blackstone and the Farallon Funds completed a public offering of 18,673,808 shares of common stock, consisting of 8,881,575 shares offered by the Company and 9,792,233 shares offered by the selling stockholders. The offering generated net proceeds for the Company and the selling stockholders of approximately $310.9 million and $342.7 million, respectively, before expenses. The Company used the net proceeds that it received from the offering to redeem 8,881,575 common units held by Blackstone and the Farallon Funds.

The Company did not receive any proceeds from the sale of the common stock by the selling stockholders in the offerings described above but it paid approximately half of the expenses of the offerings with respect to the shares of common stock sold by the Farallon Funds and all of the expenses with respect to the shares of common stock sold by Blackstone, in each case, other than underwriting discounts, which were borne by the selling stockholders.

18. Commitments and Contingencies

Legal

From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of March 31, 2017, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote.

Concentrations

As of March 31, 2017, the majority of the Company’s properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio.

A significant portion of the Company’s rental revenue is derived from tenants in the media and entertainment and technology industries. As of March 31, 2017, approximately 15.8% and 28.5% of rentable square feet were related to the media and entertainment and technology industries, respectively.

As of March 31, 2017, the Company’s 15 largest tenants represented approximately 23.4% of its rentable square feet and no single tenant accounted for more than 10%.

34

Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.

Notes to Unaudited Consolidated Financial Statements—(Continued)

(Unaudited, tabular amounts in thousands, except square footage and share data)

Letters of Credit

As of March 31, 2017, the Company has outstanding letters of credit totaling approximately $2.6 million under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements.

19. Subsequent Events

On May 1, 2017, the Company completed its acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios), a 369,000-square-foot media and entertainment campus located in Hollywood, California, for $200.0 million (before credits, prorations and closing costs). In April 2017, the Company drew $150.0 million under the unsecured revolving credit facility to fund the acquisition. The Company is currently in the process of determining the purchase price allocation.

35

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

Certain written and oral statements made or incorporated by reference from time to time by us or our representatives in this Quarterly Report on Form 10-Q, other filings or reports filed with the SEC, press releases, conferences, or otherwise, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, as amended, and Section 21E of the Exchange Act). In particular, statements relating to our liquidity and capital resources, portfolio performance and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including anticipated funds from operations, or FFO, market conditions and demographics) are forward-looking statements. We are including this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any such forward-looking statements. We caution investors that any forward-looking statements presented in this Quarterly Report on Form 10-Q, or that management may make orally or in writing from time to time, are based on management’s beliefs and assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. Additional information concerning these and other risks and uncertainties is contained in our other periodic filings with the SEC.

Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:

• adverse economic or real estate developments in our target markets;

• general economic conditions;

• defaults on, early terminations of or non-renewal of leases by tenants;

• fluctuations in interest rates and increased operating costs;

• our failure to obtain necessary outside financing or maintain an investment grade rating;

• our failure to generate sufficient cash flows to service our outstanding indebtedness and maintain dividend payments;

• lack or insufficient amounts of insurance;

• decreased rental rates or increased vacancy rates;

• difficulties in identifying properties to acquire and completing acquisitions;

• our failure to successfully operate acquired properties and operations;

• our failure to maintain our status as a REIT;

• environmental uncertainties and risks related to adverse weather conditions and natural disasters;

• financial market fluctuations;

36

• risks related to acquisitions generally, including the diversion of management’s attention from ongoing business operations and the impact on customers, tenants, lenders, operating results and business;

• the inability to successfully integrate acquired properties, realize the anticipated benefits of acquisitions or capitalize on value creation opportunities;

• changes in real estate and zoning laws and increases in real property tax rates; and

• other factors affecting the real estate industry generally.

Additionally, we operate in a highly competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

Historical Results of Operations

This Quarterly Report on Form 10-Q of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. for the three months ended March 31, 2017 represents an update to the more detailed and comprehensive disclosures included in the 2016 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. Accordingly, you should read the following discussion in conjunction with the information included in our 2016 Annual Report on Form 10-K, as well as the unaudited financial statements included in Part I, Item I of this Quarterly Report on Form 10-Q.

In addition, some of the statements and assumptions in this Quarterly Report on Form 10-Q are forward-looking statements within the meaning of Section 27A of the Securities Act or Section 21E of the Exchange Act, including, in particular, statements about our plans, strategies and prospects as well as estimates of industry growth for the first quarter and beyond. See “Forward-Looking Statements.”

37

Overview

The following table identifies the properties in our portfolio as of March 31, 2017:

Properties	Acquisition Date	Square Feet	Consideration Paid (in thousands)
Predecessor properties:
875 Howard Street	2/15/2007	286,270	$	—
Sunset Gower Studios	8/17/2007	545,673	—
Sunset Bronson Studios	1/30/2008	308,026	—
Technicolor Building(1)	6/1/2008	114,958	—
Properties acquired after IPO:
Del Amo Office	8/13/2010	113,000	27,327
9300 Wilshire	8/24/2010	61,224	14,684
1455 Market Street(2)	12/16/2010	1,025,833	92,365
Rincon Center	12/16/2010	580,850	184,571
10950 Washington	12/22/2010	159,024	46,409
604 Arizona	7/26/2011	44,260	21,373
275 Brannan Street	8/19/2011	54,673	12,370
625 Second Street	9/1/2011	138,080	57,119
6922 Hollywood	11/22/2011	205,523	92,802
6050 Sunset Blvd. & 1445 N. Beachwood Drive	12/16/2011	20,032	6,502
10900 Washington	4/5/2012	9,919	2,605
901 Market Street	6/1/2012	206,199	90,871
Element LA	9/5/2012	247,545	88,436
1455 Gordon Street	9/21/2012	5,921	2,385
Pinnacle I(3)	11/8/2012	393,777	209,504
3401 Exposition	5/22/2013	63,376	25,722
Pinnacle II(3)	6/14/2013	230,000	136,275
Seattle Portfolio (First & King, Met Park North and Northview Center)	7/31/2013	844,980	368,389
1861 Bundy	9/26/2013	36,492	11,500
Merrill Place	2/12/2014	193,153	57,034
EOP Northern California Portfolio (see table on next page for property list)	4/1/2015	7,120,686	3,489,541
4th & Traction(4)	5/22/2015	120,937	49,250
405 Mateo	8/17/2015	83,285	40,000
11601 Wilshire	7/1/2016	500,475	311,000
Hill7(5)	10/7/2016	285,680	179,800
Page Mill Hill	12/12/2016	182,676	150,000
Development properties(6):
Icon(7)	N/A	323,273	N/A
CUE(8)	N/A	91,953	N/A
450 Alaskan Way(9)	N/A	166,800	N/A
Total		14,764,553	$	5,767,834

_________________

(1) We acquired this property in August 2007 and the development was completed in June 2008.

(2) We own a 55% joint venture interest in the 1455 Market Street property as of January 2015.

(3) We own a 65% joint venture interest in the Pinnacle I and Pinnacle II properties as of June 2013.

(4) We estimate this development will be completed in the second quarter of 2017 and stabilized in the second quarter of 2018.

(5) We own a 55% joint venture interest in the Hill7 property as of October 2016.

(6) The development properties were included within acquisitions above.

(7) This development was completed in the fourth quarter of 2016 and is estimated to be stabilized in the second quarter of 2017.

(8) We estimate this development will be completed in the third quarter of 2017 and stabilized in the second quarter of 2019.

(9) We estimate this development will be completed in the fourth quarter of 2017 and stabilized in the second quarter of 2018.

38

The following table identifies the properties that were acquired as part of the EOP Acquisition that we still own as of March 31, 2017:

Properties	Square Feet
1740 Technology	206,876
2180 Sand Hill Road	45,613
333 Twin Dolphin Plaza	182,789
3400 Hillview	207,857
555 Twin Dolphin Plaza	198,936
Campus Center	471,580
Clocktower Square	100,344
Concourse	944,386
Embarcadero Place	197,402
Foothill Research Center	195,376
Gateway	609,093
Lockheed	42,899
Metro Center	730,215
Metro Plaza	456,921
Page Mill Center	176,245
Palo Alto Square	328,251
Peninsula Office Park	510,789
Shorebreeze	230,932
Skyport Plaza	418,086
Skyway Landing	247,173
Techmart Commerce Center	284,440
Towers at Shore Center	334,483
Total	7,120,686

39

The following table identifies the properties that were disposed through March 31, 2017:

Properties	Disposition Date	Square Feet	Sales Price(1) (in millions)
City Plaza	7/12/2013	333,922	$	56.0
Tierrasanta	7/16/2014	112,300	19.5
First Financial	3/6/2015	223,679	89.0
Bay Park Plaza	9/29/2015	260,183	90.0
Bayhill Office Center	1/14/2016	554,328	215.0
Patrick Henry Drive	4/7/2016	70,520	19.0
One Bay Plaza	6/1/2016	195,739	53.4
12655 Jefferson	11/4/2016	100,756	80.0
222 Kearny Street	2/14/2017	148,797	51.8
3402 Pico Boulevard	3/21/2017	50,687	35.0
Total(2)(3)		2,050,911	$	708.7

_________________ 

(1) Represents gross sales price before certain credits, prorations and closing costs.

(2) Excludes the disposition of 45% interest in 1455 Market Street office property on January 7, 2015.

(3) Excludes our sale of an option to acquire land at 9300 Culver on December 6, 2016.

All amounts and percentages used in this discussion of our results of operations are calculated using the numbers presented in the financial statements contained in Part I, Item I of this Quarterly Report rather than the rounded numbers appearing in this discussion. The dollar amounts included in the tables in this discussion of our results of operations are presented in thousands.

40

Comparison of the three months ended March 31, 2017 to the three months ended March 31, 2016

Net Operating Income

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 or cash flows 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 NOI 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.

Management further analyzes NOI by evaluating the performance from the following property groups:

• Same-Store Properties—which includes 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;

• Non-Same-Store properties, development projects, redevelopment properties and lease-up properties as of March 31, 2017 and other properties not owned or not in operation from January 1, 2016 through March 31, 2017.

The following table reconciles net income to NOI:

	Three Months Ended March 31,
	2017			2016			Dollar Change			Percentage Change
Net income	$	24,153		$	5,976		$	18,177		304.2	%
Adjustments:
Interest expense	21,930			17,251			4,679			27.1
Interest income	(30		)	(13		)	(17		)	130.8
Unrealized (gain) loss on ineffective portion of derivative instruments	(6		)	2,125			(2,131		)	100.3
Other (income) expense	(678		)	24			(702		)	2,925.0
Gains on sale of real estate	(16,866		)	(6,352		)	(10,514		)	165.5
Income from operations	28,503			19,011			9,492			49.9
Adjustments:
General and administrative	13,810			12,503			1,307			10.5
Depreciation and amortization	70,767			68,368			2,399			3.5
NOI	$	113,080		$	99,882		$	13,198		13.2	%
Same-Store NOI	$	76,195		$	73,577		$	2,618		3.6	%
Non-Same-Store NOI	36,885			26,305			10,580			40.2
NOI	$	113,080		$	99,882		$	13,198		13.2	%

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The following table summarizes certain statistics of our Same-Store office and media and entertainment properties:

	Three Months Ended March 31,
	2017			2016
Same-Store office statistics:
Number of properties	34			34
Rentable square feet	8,336,019			8,336,019
Ending % leased	96.3		%	95.9		%
Ending % occupied	95.8		%	94.4		%
Average % occupied for the period	95.6		%	93.6		%
Average annual rental rate per square foot	$	40.24		$	38.93
Same-Store media and entertainment statistics:
Number of properties	2			2
Rentable square feet	879,652			879,652
Average % occupied for the period	90.3		%	81.6		%

The following table gives further detail on our NOI:

	Three Months Ended March 31,
	2017						2016
	Same-Store		Non-Same-Store		Total		Same-Store		Non-Same-Store		Total
Revenues
Office
Rental	$	81,972	$	51,544	$	133,516	$	78,513	$	37,714	$	116,227
Tenant recoveries	12,930		4,471		17,401		16,892		3,641		20,533
Parking and other	4,040		1,859		5,899		4,089		1,443		5,532
Total office revenues	98,942		57,874		156,816		99,494		42,798		142,292
Media & Entertainment
Rental	6,685		—		6,685		6,028		—		6,028
Tenant recoveries	665		—		665		199		—		199
Other property-related revenue	4,042		—		4,042		4,969		—		4,969
Other	77		—		77		49		—		49
Total Media & Entertainment revenues	11,469		—		11,469		11,245		—		11,245
Total revenues	110,411		57,874		168,285		110,739		42,798		153,537
Operating Expenses
Office operating expenses	26,965		20,989		47,954		31,210		16,493		47,703
Media & Entertainment operating expenses	7,251		—		7,251		5,952		—		5,952
Total operating expenses	34,216		20,989		55,205		37,162		16,493		53,655
Office NOI	71,977		36,885		108,862		68,284		26,305		94,589
Media & Entertainment NOI	4,218		—		4,218		5,293		—		5,293
NOI	$	76,195	$	36,885	$	113,080	$	73,577	$	26,305	$	99,882

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The following table gives further detail on our change to NOI:

	Three Months Ended March 31, 2017 as compared to Three Months Ended March 31, 2016
	Same-Store					Non-Same-Store				Total
	Dollar Change			Percent Change		Dollar Change		Percent Change		Dollar Change			Percent Change
Revenues
Office
Rental	$	3,459		4.4	%	$	13,830	36.7	%	$	17,289		14.9	%
Tenant recoveries	(3,962		)	(23.5	)	830		22.8		(3,132		)	(15.3	)
Parking and other	(49		)	(1.2	)	416		28.8		367			6.6
Total office revenues	(552		)	(0.6	)	15,076		35.2		14,524			10.2
Media & Entertainment
Rental	657			10.9		—		—		657			10.9
Tenant recoveries	466			234.2		—		—		466			234.2
Other property-related revenue	(927		)	(18.7	)	—		—		(927		)	(18.7	)
Other	28			57.1		—		—		28			57.1
Total Media & Entertainment revenues	224			2.0		—		—		224			2.0
Total revenues	(328		)	(0.3	)	15,076		35.2		14,748			9.6
Operating expenses
Office operating expenses	(4,245		)	(13.6	)	4,496		27.3		251			0.5
Media & Entertainment operating expenses	1,299			21.8		—		—		1,299			21.8
Total operating expenses	(2,946		)	(7.9	)	4,496		27.3		1,550			2.9
Office NOI	3,693			5.4		10,580		40.2		14,273			15.1
Media & Entertainment NOI	(1,075		)	(20.3	)	—		—		(1,075		)	(20.3	)
NOI	$	2,618		3.6	%	$	10,580	40.2	%	$	13,198		13.2	%

NOI increased $13.2 million, or 13.2%, for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016, primarily resulting from:

• A $3.7 million, or 5.4%, increase in NOI from our Same-Store office properties resulting primarily from increased rental income relating to leases signed at our 1455 Market Street (Uber Technologies, Inc. and Vevo), 625 Second Street (Github and Blue Jeans) and Skyport Plaza (Qualcomm) properties at a higher rate than expiring leases, partially offset by a reduction in rental income at our Towers at Shore Center property due to a lease renewal at market rates lower than expiring rates. In addition, the increase was partially offset by tenant recoveries and tax adjustments relating to the prior year for our Rincon Center, Clocktower Square and 1455 Market Street properties.

• A $10.6 million, or 40.2%, increase in NOI from our Non-Same-Store office store properties resulting primarily fromincreased rental income relating to the commencement of Netflix’s lease at our Icon property, higher rents and occupancy at our Metro Center (Qualys, Inc. and BrightEdge) property and a number of acquisitions in 2016, which include 11601 Wilshire (acquired July 2016), Hill7 (acquired October 2016) and Page Mill Hill (acquired December 2016 (collectively “2016 Acquisitions”), partially offset by the sale of our Bayhill Office Center (sold in January 2016), One Bay Plaza (sold in June 2016) and 222 Kearny Street (sold in February 2017) properties.

• A $1.1 million, or 20.3%, decrease in NOI from our Same-Store media and entertainment properties resulting primarily from lower other property-related revenues and higher operating expenses. The decrease was driven by 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. Additionally, the increase in operating expense was largely due to higher occupancy and expense savings associated with a property tax reassessment in 2016. The decrease was partially offset by an increase in rental revenues resulting primarily from higher occupancy and an increase in tenant recoveries largely stemmed from higher recoveries for current and prior year expenses attributable to KTLA at Sunset Bronson Studios.

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Office NOI

Same-Store

Same-Store office rental revenue increased $3.5 million, or 4.4%, to $82.0 million for the three months ended March 31, 2017 compared to $78.5 million for the three months ended March 31, 2016. The increase is primarily due to leases signed at our 1455 Market Street (Uber Technologies, Inc and Vevo), 625 Second Street (Github and Blue Jeans) and Skyport Plaza (Qualcomm) properties at a higher rate than expiring leases and partially offset by a reduction in rental income at our Towers at Shore Center property due to a lease renewal at market rates lower than expiring rates.

Same-Store office tenant recoveries decreased $4.0 million, or 23.5%, to $12.9 million for three months ended March 31, 2017 compared to $16.9 million for the three months ended March 31, 2016. The decrease is primarily related to lower property tax recovery resulting from a property tax reassessment of our Rincon Center, Clocktower Square and 1455 Market Street properties.

Same-Store office parking and other revenue was $4.0 million for the three months ended March 31, 2017, relatively flat as compared to $4.1 million for the three months ended March 31, 2016.

Same-Store office operating expenses decreased $4.2 million, or 13.6%, to $27.0 million for the three months ended March 31, 2017 compared to $31.2 million for the three months ended March 31, 2016. The decrease is primarily due to tax reassessments relating to the prior year for our Rincon Center, Clocktower Square and 1455 Market Street properties.

Non-Same-Store

Non-Same-Store office rental revenue increased by $13.8 million, or 36.7%, to $51.5 million for the three months ended March 31, 2017 compared to $37.7 million for the three months ended March 31, 2016. The increase is primarily due to rental income relating to the commencement of Netflix’s lease at our Icon property, higher rents and occupancy at our Metro Center (Qualys, Inc. and BrightEdge) property and the 2016 Acquisitions, partially offset by the sale of our Bayhill Office Center (sold in January 2016), One Bay Plaza (sold in June 2016) and 222 Kearny Street (sold in February 2017) properties.

Non-Same-Store office tenant recoveries increased $0.8 million, or 22.8%, to $4.5 million for three months ended March 31, 2017 compared to $3.6 million for the three months ended March 31, 2016. The increase is primarily due to higher occupancy and higher overall recoverable operating expenses.

Non-Same-Store office parking and other revenue was $1.9 million for the three months ended March 31, 2017, relatively flat as compared to $1.4 million for the three months ended March 31, 2016.

Non-Same-Store office operating expenses increased by $4.5 million, or 27.3%, to $21.0 million for the three months ended March 31, 2017 compared to $16.5 million for the three months ended March 31, 2016. The increase is primarily due to the 2016 Acquisitions partially offset by the sale of our Bayhill Office Center (sold in January 2016), One Bay Plaza (sold in June 2016) and 222 Kearny Street (sold in February 2017) properties.

Same-Store Media & Entertainment NOI

Media and entertainment rental revenue, tenant recoveries and other property-related revenue were $11.5 million for the three months ended March 31, 2017, relatively flat as compared to $11.2 million for the three months ended March 31, 2016. The activity is primarily related to a $0.7 million increase in rental revenue to $6.7 million for the three months ended March 31, 2017, relatively flat as compared to $6.0 million for the three months ended March 31, 2016 and a $0.5 million increase in tenant recoveries to $0.7 million for the three months ended March 31, 2017, relatively flat as compared to $0.2 million for the three months ended March 31, 2016. Other property-related revenues decreased by $0.9 million to $4.0 million for the three months ended March 31, 2017 primarily due to 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.

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Media and entertainment operating expenses increased $1.3 million, or 21.8%, to $7.3 million for the three months ended March 31, 2017 compared to $6.0 million for the three months ended March 31, 2016. The increase is primarily due to higher occupancy and expense savings associated with a property tax reassessment in 2016.

Other Expenses (Income)

General and administrative expenses include wages and salaries for corporate-level employees, accounting, legal and other professional services, office supplies, entertainment, travel and automobile expenses, telecommunications and computer-related expenses and other miscellaneous items. General and administrative expenses increased $1.3 million, or 10.5%, to $13.8 million for the three months ended March 31, 2017 compared to $12.5 million for the three months ended March 31, 2016. The increase in general and administrative expenses was primarily attributable to the adoption of the 2017 OPP and increased staffing to meet operational needs, partially offset by decreases in office expenses and shareholder relation costs.

Depreciation and amortization expense increased $2.4 million, or 3.5%, to $70.8 million for the three months ended March 31, 2017 compared to $68.4 million for the three months ended March 31, 2016. The increase was primarily related to depreciation expenses associated with 2016 Acquisitions and our Icon property, partially offset by the reduction of depreciation expense as a result of the sale of our One Bay Plaza and 222 Kearny Street properties.

Interest expense increased $4.7 million, or 27.1%, to $21.9 million for the three months ended March 31, 2017 compared to $17.3 million for the three months ended March 31, 2016. At March 31, 2017, we had $2.4 billion of notes payable, compared to $2.1 billion at March 31, 2016, excluding net deferred financing costs and net unamortized loan premium. The increase was primarily attributable to a$400.0 million increase in term loan debt and private placement borrowings and $101.0 million borrowings related to our Hill7 property, partially offset by interest savings related to our paydown on our indebtedness associated with our Sunset Gower Studios and Sunset Bronson Studios properties.

We recognized unrealized gain on our derivative instruments of $6 thousand at March 31, 2017 as compared to $2.1 million unrealized loss at March 31, 2016. The unrealized gain is related to a portion of our derivative instruments that was evaluated to be ineffective in 2016. In July 2016, we amended the interest rate swaps to add a 0.00% floor to one-month LIBOR, and then de-designated the original swaps and designated the amended swaps as a hedge in order to minimize the ineffective portion of the original derivatives.

We completed the sale of our 222 Kearny Street and 3402 Pico Boulevard properties for $51.8 million and $35.0 million, respectively (before certain credits, prorations and closing costs). We generated $16.9 million gains on sale of real estate for the three months ended March 31, 2017 compared to a $6.4 million gain on sale of real estate for the three months ended March 31, 2016 resulting from the sale of our Bayhill Office property for $215.0 million (before certain credits, prorations and closing costs).

Liquidity and Capital Resources

We had $115.7 million of cash and cash equivalents at March 31, 2017.

As of March 31, 2017, we had $400.0 million of total undrawn capacity under our unsecured revolving credit facility.

We have an at-the-market equity offering program, or ATM program, which allows us to sell up to $125.0 million of common stock, $20.1 million of which has been sold through March 31, 2017.

On January 20, 2016, our Board authorized a share repurchase program to buy up to $100.0 million of our outstanding common stock. No share repurchases were made through March 31, 2017.

We intend to use the unsecured revolving credit facility and ATM program, among other things, to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures, and to provide for working capital and other corporate purposes.

Based on the closing price of our common stock of $34.64 on March 31, 2017, our ratio of debt to total market capitalization was approximately 30.7% (counting Series A preferred units as debt). Our total market capitalization is defined as the sum of the market value of our outstanding common stock (which may decrease, thereby increasing our debt to total

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capitalization ratio), including restricted stock that we may issue to certain of our directors and executive officers, plus the aggregate value of common units not owned by us, plus the liquidation preference of outstanding Series A preferred units, plus the book value of our total consolidated indebtedness.

Our short-term liquidity requirements primarily consist of operating expenses and other expenditures associated with our properties, distributions to our limited partners and dividend payments to our stockholders required to maintain our REIT status, capital expenditures and, potentially, acquisitions. We expect to meet our short-term liquidity requirements through cash on hand, net cash provided by operations, reserves established from existing cash and, if necessary, by drawing upon our unsecured revolving credit facility.

Our long-term liquidity needs consist primarily of funds necessary for the repayment of debt at maturity, property acquisitions and non-recurring capital improvements. We expect to meet our long-term liquidity requirements with net cash from operations, long-term secured and unsecured indebtedness and the issuance of equity and debt securities. We also may fund property acquisitions and non-recurring capital improvements using our unsecured revolving credit facility pending permanent financing.

We believe we have access to multiple sources of capital to fund our long-term liquidity requirements, including the incurrence of additional debt and the issuance of additional equity. However, our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders. Our ability to access the equity capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about us.

Outstanding Indebtedness

Our indebtedness creates the possibility that we may be unable to generate cash sufficient to pay the principal of, interest on or other amounts in respect of our indebtedness and other obligations. In addition, we may incur additional debt from time to time to finance strategic acquisitions, investments, joint ventures or for other purposes, subject to the restrictions contained in the documents governing our indebtedness. If we incur additional debt, the risks associated with our leverage, including our ability to service our debt, would increase.

As of March 31, 2017, we had outstanding notes payable of $2.41 billion (before $18.8 million of net deferred financing costs), of which $1.17 billion, or 48.6%, was variable rate debt. $839.5 million of the variable rate debt is subject to derivative instruments described in Item 1. “Financial Statements—Note 10 to the Consolidated Financial Statements—Derivative Instruments.”

The following table summarizes the balances of our indebtedness as of:

	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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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
UNSECURED LOANS
Unsecured Revolving Credit Facility(2)	$	—	$	—		$	300,000	$	—		LIBOR+ 1.15% to 1.85%	4/1/2019	(3)
5-Year Term Loan due April 2020(2)(4)	450,000		(3,243		)	450,000		(3,513		)	LIBOR+ 1.30% to 2.20%	4/1/2020
5-Year Term Loan due November 2020(2)	175,000		(697		)	175,000		(745		)	LIBOR +1.30% to 2.20%	11/17/2020
7-Year Term Loan due April 2022(2)(5)	350,000		(2,157		)	350,000		(2,265		)	LIBOR+ 1.60% to 2.55%	4/1/2022
7-Year Term Loan due November 2022(2)(6)	125,000		(892		)	125,000		(931		)	LIBOR +1.60% to 2.55%	11/17/2022
Series A Notes	110,000		(891		)	110,000		(930		)	4.34%	1/2/2023
Series E Notes	50,000		(289		)	50,000		(300		)	3.66%	9/15/2023
Series B Notes	259,000		(2,207		)	259,000		(2,271		)	4.69%	12/16/2025
Series D Notes	150,000		(874		)	150,000		(898		)	3.98%	7/6/2026
Series C Notes	56,000		(527		)	56,000		(539		)	4.79%	12/16/2027
TOTAL UNSECURED LOANS	1,725,000		(11,777		)	2,025,000		(12,392		)
MORTGAGE LOANS
Mortgage Loan secured by Rincon Center(7)	99,897		(158		)	100,409		(198		)	5.13%	5/1/2018
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios	5,001		(1,357		)	5,001		(1,534		)	LIBOR+2.25%	3/4/2019	(3)
Mortgage Loan secured by Met Park North(8)	64,500		(370		)	64,500		(398		)	LIBOR+1.55%	8/1/2020
Mortgage Loan secured by 10950 Washington(7)	27,798		(337		)	27,929		(354		)	5.32%	3/11/2022
Mortgage Loan secured by Pinnacle I(9)(10)	129,000		(567		)	129,000		(593		)	3.95%	11/7/2022
Mortgage Loan secured by Element LA	168,000		(2,256		)	168,000		(2,321		)	4.59%	11/6/2025
Mortgage Loan secured by Pinnacle II(10)	87,000		(701		)	87,000		(720		)	4.30%	6/11/2026
Mortgage Loan secured by Hill7(11)	101,000		(1,285		)	101,000		(1,319		)	3.38%	11/6/2026
TOTAL MORTGAGE LOANS	682,196		(7,031		)	682,839		(7,437		)
TOTAL	$	2,407,196	$	(18,808	)	$	2,707,839	$	(19,829	)

_________________

(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) 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.

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

(4) 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. See Note 10 to our Consolidated Financial Statements for details.

(5) 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. See Item 1. “Financial Statements—Note 10 to our Consolidated Financial Statements—Derivative Instruments” for details.

(6) 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. See Item 1. “Financial Statements—Note 10 to our Consolidated Financial Statements—Derivative Instruments” for details.

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

(8) 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. See Item 1. “Financial Statements—Note 10 to our Consolidated Financial Statements—Derivative Instruments” for details.

(9) 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.

(10) 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.

(11) 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.

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The operating partnership was in compliance with its financial covenants as of March 31, 2017.

Cash Flows

A comparison of our cash flow activity is as follows:

	Three Months Ended March 31,
	2017			2016			Dollar Change			Percent Change
Net cash provided by operating activities	$	92,897		$	58,897		$	34,000		57.7	%
Net cash (used in) provided by investing activities	(51,912		)	158,214			(210,126		)	(132.8	)
Net cash used in financing activities	(8,310		)	(213,295		)	204,985			(96.1	)

Cash and cash equivalents were $115.7 million and $83.0 million at March 31, 2017 and December 31, 2016, respectively.

Operating Activities

Net cash provided by operating activities increased by $34.0 million to $92.9 million for the three months ended March 31, 2017 compared to $58.9 million for the three months ended March 31, 2016. The increase was primarily attributable to an increase in cash NOI, as defined, from our office properties, arising primarily from the 11601 Wilshire, Hill7 and Page Mill Hill acquisitions, and higher rental revenue across our portfolio.

Investing Activities

Net cash used in investing activities increased by $210.1 million to $51.9 million for the three months ended March 31, 2017 compared to net cash provided by investing activities of $158.2 million for the three months ended March 31, 2016. The increase was primarily attributable to increased cash used for additions to investment in real estate, contributions to an unconsolidated entity, and payment of the deposit for the Sunset Las Palmas Studios (formerly Hollywood Center Studios and purchase of the remaining interest in the land associated with our 11601 Wilshire property, partially offset by lower proceeds from sale of real estate assets.

Financing Activities

Net cash used in financing activities decreased by $205.0 million to $8.3 million for the three months ended March 31, 2017 compared to $213.3 million for the three months ended March 31, 2016. The change was primarily due to proceeds from sale of common stock in 2017, partially offset by repurchases of common units in our operating partnership in 2017, increase in payments of notes payables, decrease in proceeds from notes payables, and increase in dividends paid to stockholders and unitholders.

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Contractual Obligations and Commitments

During the three months endedMarch 31, 2017, there were no material changes outside the ordinary course of business in the information regarding specified contractual obligations contained in our Annual Report on Form 10-K for the year ended December 31, 2016. See Item 1. “Financial Statements—Note 9 to our Consolidated Financial Statements—Notes Payable, net” for information regarding our minimum future principal payments due on our senior unsecured loans and mortgage loans. See Item 1. “Financial Statements—Note 12 to our Consolidated Financial Statements—Future Minimum Base Rents and Lease Payments Future Minimum Rents” for information regarding our future minimum base rents and future minimum ground lease payments.

Off-Balance Sheet Arrangements

We currently do not have any off-balance sheet arrangements.

Critical Accounting Policies

Our discussion and analysis of our historical financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our financial statements in conformity with GAAP requires us to make estimates of certain items and judgments as to certain future events, for example with respect to the assignment of the purchase price of acquired property among land, buildings, improvements, equipment, and any related intangible assets and liabilities, or the effect of a property tax reassessment of our properties. These determinations, even though inherently subjective and prone to change, affect the reported amounts of our assets, liabilities, revenues and expenses. While we believe that our estimates are based on reasonable assumptions and judgments at the time they are made, some of our assumptions, estimates and judgments will inevitably prove to be incorrect. As a result, actual outcomes will likely differ from our accruals, and those differences—positive or negative—could be material. Some of our accruals are subject to adjustment, as we believe appropriate based on revised estimates and reconciliation to the actual results when available.

In addition, we identified certain critical accounting policies that affect certain of our more significant estimates and assumptions used in preparing our consolidated financial statements in our 2016 Annual Report on Form 10-K. We have not made any material changes to these policies during the periods covered by this Report.

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Non-GAAP Supplemental Financial Measure: Funds From Operations

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 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.

The following table presents a reconciliation of net income to FFO:

	Three Months Ended   March 31,
	2017			2016
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

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about our market risk is disclosed in Part II, Item 7A, of our 2016 Annual Report on Form 10-K, and is incorporated herein by reference. There have been no material changes for the three months ended March 31, 2017 to the information provided in Part II, Item 7A, of our 2016 Annual Report on Form 10-K.

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ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures (Hudson Pacific Properties, Inc.)

Hudson Pacific Properties, Inc. maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Hudson Pacific Properties, Inc.’s reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by Rule 13a-15(b) under the Exchange Act, Hudson Pacific Properties, Inc. carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report.

Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded, as of that time, that Hudson Pacific Properties, Inc.’s disclosure controls and procedures were effective in providing a reasonable level of assurance that information Hudson Pacific Properties, Inc. is required to disclose in reports that Hudson Pacific Properties, Inc. files under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

Disclosure Controls and Procedures (Hudson Pacific Properties, L.P.)

Hudson Pacific Properties, L.P. maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Hudson Pacific Properties, L.P.’s reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As required by Rule 13a-15(b) under the Exchange Act, Hudson Pacific Properties, L.P. carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report.

Based on the foregoing, the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.) concluded, as of that time, that Hudson Pacific Properties, L.P.’s disclosure controls and procedures were effective in providing a reasonable level of assurance that information Hudson Pacific Properties, L.P. is required to disclose in reports that Hudson Pacific Properties, L.P. files under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), as appropriate, to allow for timely decisions regarding required disclosure.

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Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, Inc.)

There have been no changes that occurred during the first quarter of the year covered by this report in Hudson Pacific Properties, Inc.’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, L.P.)

There have been no changes that occurred during the first quarter of the year covered by this report in Hudson Pacific Properties, L.P.’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II—OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

From time to time, we are a party to various lawsuits, claims and other legal proceedings arising out of, or incident to, our ordinary course of business. We are not currently a party, as plaintiff or defendant, to any legal proceedings that we believe to be material or that, individually or in the aggregate, would be expected to have a material adverse effect on our business, financial condition, results of operations or cash flows if determined adversely to us.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors included in the section entitled “Risk Factors” in our 2016 Annual Report on Form 10-K. Please review the Risk Factors set forth in our 2016 Annual Report on Form 10-K.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

(a)Recent Sales of Unregistered Securities:

During the first quarter of 2017, our operating partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below:

During the first quarter of 2017, the Company issued an aggregate of 251,080 shares of its common stock in connection with restricted stock awards for no cash consideration, out of which 120,261 shares of common stock were forfeited to the Company in connection with tax withholding obligations for restricted stock awards for a net issuance of 130,819 shares of common stock. For each share of common stock issued by the Company in connection with such an award, our operating partnership issued a restricted common unit to the Company as provided in our operating partnership’s partnership agreement. During the first quarter of 2017, our operating partnership issued an aggregate of 251,080 common units to the Company.

All other issuances of unregistered equity securities of our operating partnership during the first quarter of 2017 have previously been disclosed in filings with the SEC. For all issuances of units to the Company, our operating partnership relied on the Company’s status as a publicly traded NYSE-listed company with over $6.70 billion in total consolidated assets and as our operating partnership’s majority owner and sole general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.

(b)Use of Proceeds from Registered Securities: None

(c)Purchases of Equity Securities by the Issuer and Affiliated Purchasers:

During the three months ended March 31, 2017, certain employees surrendered common shares owned by them to satisfy their statutory federal income tax obligation associated with the vesting of restricted common shares of beneficial interest issued under our 2010 Plan.

54

The following table summarizes all of the repurchases of the Company equity securities during the first quarter of 2017:

Period	Total Number of Shares Purchased	Average Price Paid Per  Share(1)		Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number Of Shares That May Yet Be Purchased Under The Plans Or Programs
January 1 - January 31, 2017	36,766	$	34.78	N/A	N/A
February 1 - February 28, 2017	83,495	35.00		N/A	N/A
March 1 - March 31, 2017	—	—		N/A	N/A
Total	120,261	34.93		N/A	N/A

_____________

(1) The price paid per share is based on the closing price of Company common shares as of the date of the determination of the statutory federal tax income.

The following table summarizes all of the repurchases of operating partnership equity securities during the first quarter of 2017:

Period	Total Number of Units Purchased	Average Price Paid Per Unit(1)		Total Number Of Units Purchased As Part Of Publicly Announced Plans Or Programs	Maximum Number Of Units That May Yet Be Purchased Under The Plans Or Programs
January 1 - January 31, 2017(2)	8,918,341	$	35.00	N/A	N/A
February 1 - February 28, 2017	83,495	35.00		N/A	N/A
March 1 - March 31, 2017	—	—		N/A	N/A
Total	9,001,836	$	35.00	N/A	N/A

_____________

(1) The price paid per unit is based on the closing price of Company common shares as of the date of the determination of the statutory federal tax income.

(2) On January 10, 2017, the Company used the net proceeds from the sale of 8,881,575 shares of its common stock pursuant to an underwritten public offering, after deducting underwriting discounts, but before estimated offering expenses payable by the Company, to acquire an aggregate of 8,598,480 common units from certain entities affiliated with Blackstone and 283,095 common units from certain funds affiliated with Farallon Capital Management.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.    

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.    OTHER INFORMATION

Not applicable.

55

ITEM 6. EXHIBITS.

		Incorporated by Reference
Exhibit No.	Description	Form	File No.	Exhibit No.	Filing Date
3.1	Articles of Amendment and Restatement of Hudson Pacific Properties, Inc.	S-11/A	333-164916	3.1	May 12, 2010
3.2	Second Amended and Restated Bylaws of Hudson Pacific Properties, Inc.	8-K	001-34789	3.1	January 12, 2015
3.3	Fourth Amended and Restated Agreement of Limited Partnership of Hudson Pacific Properties, L.P.	10-K	001-34789	10.1	February 26, 2016
3.4	Certificate of Limited Partnership of Hudson Pacific Properties, L.P.	10-Q	001-34789	3.4	November 4, 2016
10.1	2017 Outperformance Award Agreement (REIT Shares)*	8-K	001-34789	10.1	February 10, 2017
10.2	2017 Outperformance Award Agreement (LTIP Units)*	8-K	001-34789	10.2	February 10, 2017
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.
31.3	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, L.P.
31.4	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Hudson Pacific Properties, L.P.
32.1	Certifications by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.
32.2	Certifications by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, L.P.
101	The following financial information from Hudson Pacific Properties, Inc.’s and Hudson Pacific Properties, L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Income (Loss) (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited), (vi) Consolidated Statements of Cash Flows (unaudited) and (vii) Notes to Unaudited Consolidated Financial Statements **

____________

*

Denotes a management contract or compensatory plan or arrangement.

**

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934 , as amended, and otherwise are not subject to liability under those sections.

56

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, thereunto duly authorized.

		HUDSON PACIFIC PROPERTIES, INC.
Date:	May 4, 2017	/S/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer (Principal Executive Officer)

		HUDSON PACIFIC PROPERTIES, INC.
Date:	May 4, 2017	/S/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer  (Principal Financial Officer)

57

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, thereunto duly authorized.

		HUDSON PACIFIC PROPERTIES, L.P.
Date:	May 4, 2017	/S/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer (Principal Executive Officer)

		HUDSON PACIFIC PROPERTIES, L.P.
Date:	May 4, 2017	/S/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer  (Principal Financial Officer)

58

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Victor J. Coleman, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Hudson Pacific Properties, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 4, 2017	/s/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Mark T. Lammas, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Hudson Pacific Properties, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 4, 2017	/s/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer

EX-31.3

Exhibit 31.3

CERTIFICATION

I, Victor J. Coleman, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Hudson Pacific Properties, L.P.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 4, 2017	/s/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer

EX-31.4

Exhibit 31.4

CERTIFICATION

I, Mark T. Lammas, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Hudson Pacific Properties, L.P.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 4, 2017	/s/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer

EX-32.1

Exhibit 32.1

WRITTEN STATEMENT

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Victor J. Coleman, Chief Executive Officer, and Mark T. Lammas, Chief Operating Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the “Company”), hereby certify as of the date hereof, solely for the purposes of 18 U.S.C. §1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) the Quarterly Report on Form 10-Q for the period ended March 31, 2017 of the Company (the “Report”) fully complies with the requirements of Section 13(a) and 15(d), as applicable, of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date:	May 4, 2017	/s/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer
Date:	May 4, 2017	/s/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

WRITTEN STATEMENT

PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

The undersigned, Victor J. Coleman, Chief Executive Officer, and Mark T. Lammas, Chief Operating Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. in its capacity as sole general partner of Hudson Pacific Properties, L.P. (the “Company”), hereby certify as of the date hereof, solely for the purposes of 18 U.S.C. §1350, as adopted by Section 906 of the Sarbanes-Oxley Act of 2002, that:

(i) the Quarterly Report on Form 10-Q for the period ended March 31, 2017 of the Company (the “Report”) fully complies with the requirements of Section 13(a) and 15(d), as applicable, of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods indicated.

Date:	May 4, 2017	/s/ VICTOR J. COLEMAN
		Victor J. Coleman Chief Executive Officer Hudson Pacific Properties, Inc., sole general partner of Hudson Pacific Properties, L.P.
Date:	May 4, 2017	/s/ MARK T. LAMMAS
		Mark T. Lammas Chief Operating Officer, Chief Financial Officer and Treasurer Hudson Pacific Properties, Inc., sole general partner of Hudson Pacific Properties, L.P.

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Entity Information [Line Items]
Entity Registrant Name	Hudson Pacific Properties, Inc.
Entity Central Index Key	0001482512
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		156,051,418
Hudson Pacific Partners L.P.
Entity Information [Line Items]
Entity Registrant Name	Hudson Pacific Properties, L.P.
Entity Central Index Key	0001496264
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
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	0	66,082
Assets associated with real estate held for sale	38,546	37,228
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	0	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
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
Partners’ capital:
TOTAL EQUITY	4,026,200	3,702,750
TOTAL LIABILITIES AND EQUITY	6,701,761	6,678,998
Hudson Pacific Partners L.P.
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	0	66,082
Assets associated with real estate held for sale	38,546	37,228
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	0	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
Partners’ capital:
Common units, 155,848,674 and 145,942,855 issued and outstanding at March 31, 2017 and December 31, 2016, respectively.	3,718,762	3,398,142
Non-controlling interest—members in consolidated entities	307,438	304,608
TOTAL CAPITAL	4,026,200	3,702,750
TOTAL LIABILITIES AND EQUITY	6,701,761	6,678,998
Non-controlling interest—members in consolidated entities
Partners’ capital:
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership	307,438	304,608
Non-controlling interest—units in the operating partnership
Partners’ capital:
Non-controlling interest—members in Consolidated Entities and Non-controlling units in the Operating Partnership	12,896	294,859
TOTAL EQUITY	$ 12,896	$ 294,859

XML

CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Common Stock:
Common Stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized (in shares)	490,000,000	490,000,000
Common Stock, shares outstanding (in shares)	155,279,629	136,492,235
6.25% series A cumulative redeemable preferred units of the Operating Partnership
Series A Cumulative Redeemable Preferred units of the Operating Partnership
Temporary Equity, dividend rate percentage (as a percent)	6.25%	6.25%
6.25% series A cumulative redeemable preferred units of the Operating Partnership | Hudson Pacific Partners L.P.
Series A Cumulative Redeemable Preferred units of the Operating Partnership
Temporary Equity, dividend rate percentage (as a percent)	6.25%	6.25%
Common Units | Hudson Pacific Partners L.P.
Common Stock:
Common Stock, shares outstanding (in shares)	155,848,674	145,942,855
Common Units, shares issued (in shares)	155,848,674	145,942,855

XML

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
REVENUES
TOTAL REVENUES	$ 168,285	$ 153,537
OPERATING EXPENSES
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 (loss) attributable to common stockholders	$ 20,515	$ 2,253
Net income attributable to common stockholders - basic (in dollars per share)	$ 0.14	$ 0.03
Net income attributable to common stockholders - diluted (in dollars per share)	$ 0.14	$ 0.03
Weighted average shares of common stock outstanding—basic (in shares)	147,950,594	89,190,803
Weighted average shares of common stock outstanding - diluted (in shares)	149,950,346	89,597,803
Dividends declared per common stock/unit (in dollars per share)	$ 0.25	$ 0.200
Hudson Pacific Partners L.P.
REVENUES
TOTAL REVENUES	$ 168,285	$ 153,537
OPERATING EXPENSES
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 non-controlling interest in consolidated entities	(3,037)	(1,945)
Net income (loss) attributable to common stockholders	$ 21,116	$ 4,031
Dividends declared per common stock/unit (in dollars per share)	$ 0.250	$ 0.2000
Series A preferred units distributions	$ (159)	$ (159)
Net income attributable to participating securities	(240)	(197)
Net income available to common unitholders	$ 20,717	$ 3,675
Net income attributable to common unitholders —basic (in dollars per share)	$ 0.14	$ 0.03
Net income attributable to common unitholders —diluted (in dollars per share)	$ 0.14	$ 0.03
Weighted average shares of common units outstanding—basic (in shares)	149,407,796	145,487,118
Weighted average shares of common units outstanding—diluted (in shares)	150,334,796	145,894,118
Office
REVENUES
Rental	$ 133,516	$ 116,227
Tenant recoveries	17,401	20,533
Parking and other	5,899	5,532
TOTAL REVENUES	156,816	142,292
OPERATING EXPENSES
Operating expenses	47,954	47,703
Office | Hudson Pacific Partners L.P.
REVENUES
Rental	133,516	116,227
Tenant recoveries	17,401	20,533
Parking and other	5,899	5,532
TOTAL REVENUES	156,816	142,292
OPERATING EXPENSES
Operating expenses	47,954	47,703
Media & Entertainment
REVENUES
Rental	6,685	6,028
Tenant recoveries	665	199
Parking and other	77	49
Other property-related revenue	4,042	4,969
TOTAL REVENUES	11,469	11,245
OPERATING EXPENSES
Operating expenses	7,251	5,952
Media & Entertainment | Hudson Pacific Partners L.P.
REVENUES
Rental	6,685	6,028
Tenant recoveries	665	199
Parking and other	77	49
Other property-related revenue	4,042	4,969
TOTAL REVENUES	11,469	11,245
OPERATING EXPENSES
Operating expenses	$ 7,251	$ 5,952

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 24,153	$ 5,976
Other comprehensive income (loss): change in fair value of derivative instruments	2,864	(15,475)
Comprehensive income (loss)	27,017	(9,499)
Comprehensive income attributable to preferred units	(159)	(159)
Comprehensive income attributable to participating securities	(240)	(197)
Comprehensive income attributable to non-controlling interest in consolidated entities	(3,037)	(1,945)
Comprehensive (income) loss attributable to units in the operating partnership	(230)	4,566
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders	23,351	(7,234)
Hudson Pacific Partners L.P.
Net income	24,153	5,976
Other comprehensive income (loss): change in fair value of derivative instruments	2,864	(15,475)
Comprehensive income (loss)	27,017	(9,499)
Comprehensive income attributable to preferred units	(159)	(159)
Comprehensive income attributable to participating securities	(240)	(197)
Comprehensive income attributable to non-controlling interest in consolidated entities	(3,037)	(1,945)
Comprehensive income (loss) attributable to Hudson Pacific Properties, Inc. stockholders	$ 23,581	$ (11,800)

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CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Common Stock/Units	Additional Paid-in Capital	Accumulated Income (Deficit)	Accumulated Other Comprehensive Income (Loss)	Non- controlling Interest—Units in the Operating Partnership	Non-controlling Interest—Members in Consolidated Entities
Beginning Balance at Dec. 31, 2015	$ 3,729,037	$ 891	$ 1,710,979	$ (44,955)	$ (1,081)	$ 1,800,578	$ 262,625
Beginning balance (in shares) at Dec. 31, 2015		89,153,780
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributions	33,996						33,996
Distributions	(1,303)						(1,303)
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs	1,449,581	$ 470	1,449,111
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares)		47,010,695
Issuance of unrestricted stock	6	$ 6
Issuance of unrestricted stock (in shares or units)		590,520
Shares withheld to satisfy tax withholding	(8,427)	$ (3)	(8,424)
Shares withheld to satisfy tax withholding (in shares)		(262,760)
Declared dividend	(117,819)		(90,005)			(27,814)
Amortization of stock-based compensation	14,654		13,609			1,045
Net income	43,122			27,984		5,848	9,290
Change in fair value of derivatives	5,942				10,577	(4,635)
Redemption of common units in the operating partnership	(1,446,039)		34,124			(1,480,163)
Ending Balance at Dec. 31, 2016	$ 3,702,750	$ 1,364	3,109,394	(16,971)	9,496	294,859	304,608
Ending balance (in shares) at Dec. 31, 2016	136,492,235	136,492,235
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributions	$ 103						103
Distributions	(310)						(310)
Proceeds from sale of common stock, net of underwriters’ discount and transaction costs	647,675	$ 187	647,488
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares)		18,656,575
Issuance of unrestricted stock	0	$ 3	(3)
Issuance of unrestricted stock (in shares or units)		251,080
Shares withheld to satisfy tax withholding	(4,203)	$ (1)	(4,202)
Shares withheld to satisfy tax withholding (in shares)		(120,261)
Declared dividend	(39,919)		(39,755)			(164)
Amortization of stock-based compensation	4,101		3,432			669
Net income	23,994			20,755		202	3,037
Change in fair value of derivatives	2,864				2,836	28
Redemption of common units in the operating partnership	(310,855)		(24,535)		(3,622)	(282,698)
Ending Balance at Mar. 31, 2017	$ 4,026,200	$ 1,553	$ 3,691,819	$ 3,784	$ 8,710	$ 12,896	$ 307,438
Ending balance (in shares) at Mar. 31, 2017	155,279,629	155,279,629

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CONSOLIDATED STATEMENTS OF CAPITAL - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance (in shares)	136,492,235
Contributions	$ 103		$ 33,996
Distributions	(310)		(1,303)
Proceeds from sale of common units, net of underwriters’ discount and transaction costs	647,675		1,449,581
Issuance of unrestricted units	0		6
Units withheld to satisfy tax withholding	(4,203)		(8,427)
Declared distributions	(39,919)		(117,819)
Amortization of unit-based compensation	4,101		14,654
Net income	23,994		43,122
Change in fair value of derivatives	2,864	$ (15,475)	5,942
Redemption of common units	$ (310,855)		$ (1,446,039)
Ending balance (in shares)	155,279,629		136,492,235
Hudson Pacific Partners L.P.
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 3,702,750	3,729,037	$ 3,729,037
Contributions	103		33,996
Distributions	(310)		(1,303)
Proceeds from sale of common units, net of underwriters’ discount and transaction costs	647,675		1,449,581
Issuance of unrestricted units			6
Units withheld to satisfy tax withholding	(4,203)		(8,427)
Declared distributions	(39,919)		(117,819)
Amortization of unit-based compensation	4,101		14,654
Net income	23,994		43,122
Change in fair value of derivatives	2,864	(15,475)	5,942
Redemption of common units	(310,855)		(1,446,039)
Ending balance	4,026,200		3,702,750
Hudson Pacific Partners L.P. | Common Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 3,398,142	$ 3,466,412	$ 3,466,412
Beginning balance (in shares)	145,942,855	145,450,095	145,450,095
Proceeds from sale of common units, net of underwriters’ discount and transaction costs	$ 647,675		$ 1,449,581
Proceeds from sale of common stock, net of underwriters' discount and transaction costs (in shares)	18,656,575		47,010,695
Issuance of unrestricted units			$ 6
Issuance of unrestricted units (in shares)	251,080		590,520
Units withheld to satisfy tax withholding	$ (4,203)		$ (8,427)
Units withheld to satisfy tax withholding (in shares)	(120,261)		(262,760)
Declared distributions	$ (39,919)		$ (117,819)
Amortization of unit-based compensation	4,101		14,654
Net income	20,957		33,832
Change in fair value of derivatives	2,864		5,942
Redemption of common units	$ (310,855)		$ (1,446,039)
Redemption of common units (in shares)	(8,881,575)		(46,845,695)
Ending balance	$ 3,718,762		$ 3,398,142
Ending balance (in shares)	155,848,674		145,942,855
Hudson Pacific Partners L.P. | Non-controlling Interest—Members in Consolidated Entities
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	$ 304,608	$ 262,625	$ 262,625
Contributions	103		33,996
Distributions	(310)		(1,303)
Net income	3,037		9,290
Ending balance	$ 307,438		$ 304,608

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 24,153	$ 5,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,767	68,368
Amortization of deferred financing costs and loan premium, net	1,186	871
Amortization of stock-based compensation	3,902	3,342
Straight-line rents	2,366	(5,658)
Straight-line rent expenses	381	529
Amortization of above- and below-market leases, net	(5,732)	(4,851)
Amortization of above- and below-market ground lease, net	637	535
Amortization of lease incentive costs	379	328
Bad debt expense	545	537
Amortization of discount and net origination fees on purchased and originated loans	0	(104)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6)	2,125
Gains on sale of real estate	(16,866)	(6,352)
Change in operating assets and liabilities:
Restricted cash	7,177	(2,001)
Accounts receivable	4,650	4,412
Deferred leasing costs and lease intangibles	(6,635)	(5,420)
Prepaid expenses and other assets	(1,072)	(935)
Accounts payable and accrued liabilities	12,378	3,084
Security deposits	1,031	430
Prepaid rent	(6,344)	(6,319)
Net cash provided by operating activities	92,897	58,897
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to investment property	(76,225)	(54,415)
Proceeds from sales of real estate	81,707	212,629
Contributions to unconsolidated entities	(1,071)	0
Deposits for property acquisitions	(56,323)	0
Net cash (used in) provided by investing activities	(51,912)	158,214
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	0	30,000
Payments of notes payable	(300,642)	(210,906)
Proceeds from issuance of common stock, net	647,675	0
Payments for redemption of common units in the operating partnership	(310,855)	0
Dividends paid to common stock and unitholders	(39,919)	(29,802)
Dividends paid to preferred unitholders	(159)	(159)
Contributions from non-controlling member in consolidated entities	103	103
Distributions to non-controlling member in consolidated entities	(310)	(326)
Payments to satisfy tax withholding	(4,203)	(1,683)
Payments of loan costs	0	(522)
Net cash used in financing activities	(8,310)	(213,295)
Net increase in cash and cash equivalents	32,675	3,816
Cash and cash equivalents—beginning of period	83,015	53,551
Cash and cash equivalents—end of period	115,690	57,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	16,172	12,101
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accounts payable and accrued liabilities for investment in property	3,501	6,868
Hudson Pacific Partners L.P.
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	24,153	5,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	70,767	68,368
Amortization of deferred financing costs and loan premium, net	1,186	871
Amortization of stock-based compensation	3,902	3,342
Straight-line rents	2,366	(5,658)
Straight-line rent expenses	381	529
Amortization of above- and below-market leases, net	(5,732)	(4,851)
Amortization of above- and below-market ground lease, net	637	535
Amortization of lease incentive costs	379	328
Bad debt expense	545	537
Amortization of discount and net origination fees on purchased and originated loans	0	(104)
Unrealized (gain) loss on ineffective portion of derivative instruments	(6)	2,125
Gains on sale of real estate	(16,866)	(6,352)
Change in operating assets and liabilities:
Restricted cash	7,177	(2,001)
Accounts receivable	4,650	4,412
Deferred leasing costs and lease intangibles	(6,635)	(5,420)
Prepaid expenses and other assets	(1,072)	(935)
Accounts payable and accrued liabilities	12,378	3,084
Security deposits	1,031	430
Prepaid rent	(6,344)	(6,319)
Net cash provided by operating activities	92,897	58,897
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to investment property	(76,225)	(54,415)
Proceeds from sales of real estate	81,707	212,629
Contributions to unconsolidated entities	(1,071)	0
Deposits for property acquisitions	(56,323)	0
Net cash (used in) provided by investing activities	(51,912)	158,214
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable	0	30,000
Payments of notes payable	(300,642)	(210,906)
Proceeds from issuance of common stock, net	647,675	0
Payments for redemption of common units in the operating partnership	(310,855)	0
Dividends paid to common stock and unitholders	(39,919)	(29,802)
Dividends paid to preferred unitholders	(159)	(159)
Contributions from non-controlling member in consolidated entities	103	103
Distributions to non-controlling member in consolidated entities	(310)	(326)
Payments to satisfy tax withholding	(4,203)	(1,683)
Payments of loan costs	0	(522)
Net cash used in financing activities	(8,310)	(213,295)
Net increase in cash and cash equivalents	32,675	3,816
Cash and cash equivalents—beginning of period	83,015	53,551
Cash and cash equivalents—end of period	115,690	57,367
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest, net of amounts capitalized	16,172	12,101
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Accounts payable and accrued liabilities for investment in property	$ 3,501	$ 6,868

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Organization

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization

Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 that did not have any meaningful operating activity until the consummation of its initial public offering and the related acquisition of its predecessor and certain other entities on June 29, 2010 (“IPO”). Since the completion of the IPO, the concurrent private placement, and the related formation transactions, Hudson Pacific Properties, Inc. has been a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and media and entertainment properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to the “Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to the “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.

On April 1, 2015, the Company completed the acquisition of the EOP Northern California Portfolio (“EOP Acquisition”) from Blackstone Real Estate Partners V and VI (“Blackstone”). The EOP Acquisition consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations, and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership.

As of March 31, 2017, the Company owned a portfolio of 52 office properties and two media and entertainment properties. These properties are located throughout Northern and Southern California and the Pacific Northwest.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2017. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2016 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.

Certain amounts in the consolidated financial statements for the prior period have been reclassified to conform to the current period presentation. Specifically, in the Consolidated Balance Sheets for the prior period, certain amounts have been reclassified to held for sale. These amounts relate to 3402 Pico Boulevard, which was sold on March 21, 2017.

Principles of Consolidation

The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned subsidiaries and variable interest entities (“VIEs”), of which the Company is the primary beneficiary. The unaudited interim consolidated financial statements of the operating partnership include the accounts of the operating partnership, and all wholly owned subsidiaries and VIEs of which the operating partnership is the primary beneficiary. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

The Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Four of the Company’s joint ventures and its operating partnership meet the definition of a VIE. The Company is the primary beneficiary of and consolidates three of the joint ventures and the operating partnership. Refer to Note 16 for details. Substantially all of the assets and liabilities of the Company are related to these VIEs. The Company is not consolidating one of its joint ventures, of which it is not the primary beneficiary, and an interest in land. Due to its significant influence over these entities, the Company accounts for them using the equity method of accounting. Refer to Note 7 for details.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of Accounting Standards Update (“ASU”). The following ASUs were adopted by the Company in the first quarter of 2017:

Standard	Description	Effect on the financial statements or other significant matters
ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update)	The guidance in this ASU is based on two SEC staff announcements made at the September 2016 and November 2016 EITF meetings. In the September meeting, the SEC announced that a registrant should disclose the potential material effects of the ASUs related to revenues, leases and credit losses on financial instruments. As a result of the November meeting, the ASU conforms Accounting Standards Codification (“ASC”) 323 to the guidance issued in ASU 2014-01 related to investments in qualified affordable housing projects.	With the adoption of this guidance, the Company is required to provide updates on its implementation of the ASUs related to revenue, leases and credit losses on financial instruments. Please refer to the table below for updates on the revenue and lease ASUs. The credit losses on financial instruments ASU is not anticipated to have a material impact on the Company.
ASU 2016-19, Technical Corrections and Improvements	The technical corrections make minor change to certain aspects of the FASB ASC, including changes to resolve differences between current and pre-Codification guidance, updates to wording, references to avoid misapplication and textual simplifications to increase the Codification’s utility and understandability and minor amendments to guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control	This guidance outlines how a single decisionmaker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE.	The adoption did not have a material impact on the Company’s consolidated financial statements and did not change the consolidation conclusion.
ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting	The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships	The guidance states that the novation of a derivative contract (e.g., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered.	The adoption did not have a material impact on the Company’s consolidated financial statements.

As required by ASU 2017-03, the Company is providing updates to the revenue and lease standard on a quarterly basis, as follows:    

Standard	Description	Effect on the financial statements or other significant matters
ASU related to Revenue from Contracts with Customers (Topic 606)	The new revenue standard was amended through various ASU’s. The ASU’s that impact the Company are ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and specifically notes that lease contracts with customers are a scope exception.	The Company does not expect this guidance to have a material effect on revenue recognition as it relates to its leasing contracts until the adoption of ASU 2016-02, at which time the standard may affect revenue recognition as it relates to certain non-lease revenue components that are part of its leasing contracts. The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently evaluating this standard as it relates to media and entertainment other property-related revenue. The Company has the option of adopting this standard on either the full retrospective basis (to the beginning of its contracts) or modified retrospective method (from the beginning of the latest fiscal year of adoption). The Company plans on adopting the standard January 1, 2018 using the modified retrospective method.
ASU 2016-02, Leases	This guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting will not be fundamentally changed.	The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently in the process of evaluating the amount of assets and liabilities relating to right of use that will need to be recorded with respect to its leases where it is the lessee. Additionally, the standard will impact the way the Company will record revenue and leasing costs where it is the lessor. For leasing costs, the Company will no longer be able to capitalize internal leasing costs to the extent they are not directly attributable to the lease transaction. Accordingly, the Company anticipates that internal leasing costs will be expensed with the adoption of this standard. With respect to the lease revenue, the Company will need to break down its current revenue streams between leasing and non-leasing components. To the extent there are non-leasing components the Company will need to record them in accordance with ASC 606 (see above). The Company is still in the process of evaluating its existing leasing components to determine what effect, if any, this standard will have on its revenue recognition as it relates to its leases. The Company will adopt the standard using the retrospective method from the beginning of the first year presented on the consolidated statement of operations which is January 1, 2017.

The Company considers the applicability and impact of all ASUs. The following table lists the recently issued ASUs that have not been disclosed in the Company’s Annual Report on Form 10-K and have not been adopted by the Company. The list excludes those ASUs that are expected to have an immaterial impact on the Company’s consolidated financial statements.

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets	The guidance clarifies the scope of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales.	Effective for annual reporting periods (including interim periods) beginning after December 15, 2017	The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements and plans to adopt this guidance in the first quarter in 2018.

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Investment in Real Estate

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Investment in Real Estate

Investment in Real Estate

Acquisitions

The Company’s acquisitions are accounted for using the acquisition method. The results of operations for each of these acquisitions are included in the Company’s Consolidated Statements of Operations from the date of acquisition.

The Company assesses fair value based on Level 2 and Level 3 inputs within the fair value framework, which includes estimated cash flow projections that utilize appropriate discount, capitalization rates, renewal probability and available market information, which includes market rental rate and market rent growth rates. Estimates of future cash flows are based on a number of factors, including historical operating results, known and anticipated trends, and market and economic conditions.

The fair value of tangible assets of an acquired property considers the value of the property as if it was vacant. The fair value of acquired “above- and below-” market leases are based on the estimated cash flow projections utilizing discount rates that reflect the risks associated with the leases acquired. The amount recorded is based on the present value of the difference between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the extended below-market term for any leases with below-market renewal options. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors considered include estimates of carrying costs during hypothetical expected lease-up periods, market conditions and costs to execute similar leases. In estimating carrying costs, the Company includes estimates of lost rents at market rates during the hypothetical expected lease-up periods, which are dependent on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, and legal and other related costs.

The Company had no acquisitions during the three months endedMarch 31, 2017.

On May 1, 2017, the Company completed its acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios) located in Hollywood, California. See Note 19 for details.

Dispositions

The following table summarizes the properties sold during the three months endedMarch 31, 2017. These properties were non-strategic assets to the Company’s portfolio:

Property	Date of Disposition	Square Feet	Sales Price(1) (in millions)
222 Kearny Street	February 14, 2017	148,797	$	51.8
3402 Pico Boulevard	March 21, 2017	50,687	35.0
Total dispositions		199,484	$	86.8

_________________ 

(1) Represents gross sales price before certain credits, prorations and closing costs.

The dispositions of these properties resulted in gains of $16.9 million for the three months endedMarch 31, 2017. These amounts are included in gains on sale of real estate in the Consolidated Statements of Operations.

Held for Sale

The Company had two properties held for sale as of December 31, 2016. Both properties were disposed of during the first quarter of 2017. The Company had no properties classified as held for sale as of March 31, 2017.

Cost Capitalization

The Company recognized the following capitalized costs during the periods presented:

	Three Months Ended March 31,
	2017		2016
Capitalized personnel costs	$	2,737	$	2,319
Capitalized interest	2,446		2,628

Impairment of Long-Lived Assets

No impairment indicators have been noted and the Company recorded no impairment charges for the three months endedMarch 31, 2017.

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Deferred Leasing Costs and Lease Intangibles, net

3 Months Ended

Mar. 31, 2017

Leases [Abstract]

Deferred Leasing Costs and Lease Intangibles, net

Deferred Leasing Costs and Lease Intangibles, net

The following summarizes the Company’s deferred leasing costs and lease intangibles as of:

	March 31, 2017			December 31, 2016
Above-market leases	$	22,823		$	23,430
Accumulated amortization	(13,738		)	(12,989		)
Above-market leases, net	9,085			10,441
Deferred leasing costs and in-place lease intangibles	376,056			378,540
Accumulated amortization	(154,381		)	(145,551		)
Deferred leasing costs and in-place lease intangibles, net	221,675			232,989
Below-market ground leases	71,423			71,423
Accumulated amortization	(5,538		)	(4,891		)
Below-market ground leases, net	65,885			66,532
Deferred leasing costs and lease intangible assets, net	$	296,645		$	309,962
Below-market leases	$	138,549		$	141,676
Accumulated amortization	(66,511		)	(62,552		)
Below-market leases, net	72,038			79,124
Above-market ground leases	1,095			1,095
Accumulated amortization	(100		)	(89		)
Above-market ground leases, net	995			1,006
Lease intangible liabilities, net	$	73,033		$	80,130

The Company recognized the following amortization related to deferred leasing costs and lease intangibles:

	Three Months Ended March 31,
	2017		2016
Above-market leases(1)	$	1,356	$	3,719
Below-market leases(1)	7,088		8,570
Deferred leasing costs and in-place lease intangibles(2)	19,793		22,568
Above-market ground leases(3)	11		11
Below-market ground leases(3)	648		546

__________________ 

(1) Amortization is recorded in office rental income in the Consolidated Statements of Operations.

(2) Amortization is recorded in depreciation and amortization expense and office rental income in the Consolidated Statements of Operations.

(3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations.

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Accounts Receivable, net

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Accounts Receivable, net

Accounts Receivable, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company's 2016 Annual Report on Form 10-K. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Accounts receivable	$	4,306		$	8,697
Allowance for doubtful accounts	(2,297		)	(1,845		)
Accounts receivable, net	$	2,009		$	6,852

Straight-line Rent Receivables, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company’s 2016 Annual Report on Form 10-K. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Straight-line rent receivables	$	87,228		$	87,417
Allowance for doubtful accounts	(2,378		)	(136		)
Straight-line rent receivables, net	$	84,850		$	87,281

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Straight-line Rent Receivables, net

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Straight-line Rent Receivables, net

Accounts Receivable, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company's 2016 Annual Report on Form 10-K. The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Accounts receivable	$	4,306		$	8,697
Allowance for doubtful accounts	(2,297		)	(1,845		)
Accounts receivable, net	$	2,009		$	6,852

Straight-line Rent Receivables, net

The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts is discussed in the Company’s 2016 Annual Report on Form 10-K. The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Straight-line rent receivables	$	87,228		$	87,417
Allowance for doubtful accounts	(2,378		)	(136		)
Straight-line rent receivables, net	$	84,850		$	87,281

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Investment in Unconsolidated Entity

3 Months Ended

Mar. 31, 2017

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entity

Investment in Unconsolidated Entities    

Investment in unconsolidated real estate in which the Company has the ability to exercise significant influence (but not control) is accounted for under the equity method of investment. Under the equity method, the Company initially records the investment at cost, and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. The Company’s net equity investment is reflected within investment in unconsolidated entities on the Consolidated Balance Sheets, and the Company’s share of net income or loss from the entity is included within other (income) expense on the Consolidated Statements of Operations.

On June 16, 2016, the Company entered into a joint venture to co-originate a loan secured by land in Santa Clara, California. The Company holds a 21% interest in the joint venture. The assets of the joint venture consist of the notes receivable. The Company’s investment in this joint venture was $30.7 million and $29.4 million as of March 31, 2017 and December 31, 2016, respectively, which represents the maximum exposure for loss for the Company. The joint venture meets the criteria of a VIE and the Company accounts for this investment under the equity method of accounting since the Company is not the primary beneficiary.

On July 1, 2016, the Company entered into an agreement with an unaffiliated third party related to the land on which its 11601 Wilshire property is located. The Company holds a 28% interest in the land. The agreement does not meet the definition of a VIE and the Company accounts for its interest in the land under the equity method of accounting. The Company’s interest in the land was $7.8 million as of March 31, 2017 and December 31, 2016. On December 27, 2016, the Company entered into an agreement to purchase the remaining interest in the land for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.

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Goodwill

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill

The Company’s goodwill balance as of March 31, 2017 and December 31, 2016 was $8.8 million. The Company does not amortize this asset but instead analyzes it on a quarterly basis for impairment. No impairment indicators have been noted during the three months endedMarch 31, 2017.

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Notes Payable, Net

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Notes Payable, Net

Notes Payable, net

The following table summarizes the balances of the Company’s indebtedness as of:

	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 the Company’s 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. 

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
UNSECURED LOANS
Unsecured Revolving Credit Facility(2)	$	—	$	—		$	300,000	$	—		LIBOR+ 1.15% to 1.85%	4/1/2019	(3)
5-Year Term Loan due April 2020(2)(4)	450,000		(3,243		)	450,000		(3,513		)	LIBOR+ 1.30% to 2.20%	4/1/2020
5-Year Term Loan due November 2020(2)	175,000		(697		)	175,000		(745		)	LIBOR +1.30% to 2.20%	11/17/2020
7-Year Term Loan due April 2022(2)(5)	350,000		(2,157		)	350,000		(2,265		)	LIBOR+ 1.60% to 2.55%	4/1/2022
7-Year Term Loan due November 2022(2)(6)	125,000		(892		)	125,000		(931		)	LIBOR +1.60% to 2.55%	11/17/2022
Series A Notes	110,000		(891		)	110,000		(930		)	4.34%	1/2/2023
Series E Notes	50,000		(289		)	50,000		(300		)	3.66%	9/15/2023
Series B Notes	259,000		(2,207		)	259,000		(2,271		)	4.69%	12/16/2025
Series D Notes	150,000		(874		)	150,000		(898		)	3.98%	7/6/2026
Series C Notes	56,000		(527		)	56,000		(539		)	4.79%	12/16/2027
TOTAL UNSECURED LOANS	1,725,000		(11,777		)	2,025,000		(12,392		)
MORTGAGE LOANS
Mortgage Loan secured by Rincon Center(7)	99,897		(158		)	100,409		(198		)	5.13%	5/1/2018
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios	5,001		(1,357		)	5,001		(1,534		)	LIBOR+2.25%	3/4/2019	(3)
Mortgage Loan secured by Met Park North(8)	64,500		(370		)	64,500		(398		)	LIBOR+1.55%	8/1/2020
Mortgage Loan secured by 10950 Washington(7)	27,798		(337		)	27,929		(354		)	5.32%	3/11/2022
Mortgage Loan secured by Pinnacle I(9)(10)	129,000		(567		)	129,000		(593		)	3.95%	11/7/2022
Mortgage Loan secured by Element LA	168,000		(2,256		)	168,000		(2,321		)	4.59%	11/6/2025
Mortgage Loan secured by Pinnacle II(10)	87,000		(701		)	87,000		(720		)	4.30%	6/11/2026
Mortgage Loan secured by Hill7(11)	101,000		(1,285		)	101,000		(1,319		)	3.38%	11/6/2026
TOTAL MORTGAGE LOANS	682,196		(7,031		)	682,839		(7,437		)
TOTAL	$	2,407,196	$	(18,808	)	$	2,707,839	$	(19,829	)

_________________

(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) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2017, no such election had been made.

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

(4) 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. See Note 10 for details.

(5) 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. See Note 10 for details.

(6) 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. See Note 10 for details.

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

(8) 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. See Note 10 for details.

(9) 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.

(10) The Company owns 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.

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

Indebtedness

The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, such as in the case of the project financing for Sunset Gower Studios and Sunset Bronson Studios, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates.

Loan agreements include events of default that the Company believes are usual for loan and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans.

The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the operating partnership’s secured and unsecured notes payable as of March 31, 2017:

Year	Annual Principal Payments
Remaining 2017	$	2,071
2018	101,157
2019	7,886
2020	692,493
2021	3,142
Thereafter	1,600,447
Total	$	2,407,196

Unsecured Revolving Credit Facility

The operating partnership’s unsecured revolving credit facility is amended from time to time. The terms of the arrangement are more fully described in the Company’s 2016 Annual Report on Form 10-K. Under the unsecured revolving credit facility, as amended and restated to date (“Amended and Restated Credit Facility”), the Company has $400.0 million of total capacity. The maturity date of April 1, 2019 can be extended with a one-year extension option. The Company uses the unsecured revolving credit facility to finance the acquisition of other properties, to provide funds for tenant improvements and capital expenditures, and to provide for working capital and other corporate purposes.

Interest on the Amended and Restated Credit Facility is generally based upon, at our option, either (i) LIBOR plus the applicable LIBOR margin or (ii) a specified base rate plus the applicable base rate margin, dependent on the operating partnership’s leverage ratio. The applicable LIBOR margin will range from 1.15% to 1.85% for the Amended and Restated Credit Facility, 1.30% to 2.20% for the 5-Year Term Loan due April 2020, depending on the operating partnership’s leverage ratio and 1.60% to 2.55% for the 7-Year Term Loan due April 2022, depending on the operating partnership’s leverage ratio. The Amended and Restated Credit Facility requires a facility fee in an amount equal to 0.20% or 0.35% of the operating partnership’s revolving credit commitments depending on the operating partnership’s leverage ratio. Unused amounts under the Amended and Restated Credit Facility are not subject to a separate fee.

Subject to the satisfaction of certain conditions and lender commitments, the operating partnership may increase the availability of the Amended and Restated Credit Facility so long as the aggregate commitments under the Amended and Restated Credit Facility do not exceed $2.0 billion.

If the Company obtains a credit rating for the Company’s senior unsecured long-term indebtedness, the operating partnership may make an irrevocable election to change the interest rate and facility fee. During 2016, the Company’s senior unsecured long-term indebtedness was assigned an investment grade rating. The Company has not made the credit rating election.

The operating partnership continues to be the borrower under the Amended and Restated Credit Facility, and the Company and all subsidiaries that own unencumbered properties will continue to provide guarantees unless the Company obtains and maintains a credit rating of at least BBB- from S&P or Baa3 from Moody’s, in which case such guarantees are not required except under limited circumstances. 

Debt Covenants

The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements, including, when considering the most restrictive terms, maintaining a leverage ratio (maximum of 0.60:1.00), unencumbered leverage ratio (maximum of 0.60:1.00), fixed charge coverage ratio (minimum of 1.50:1.00), secured indebtedness leverage ratio (maximum of 0.45:1.00), and unsecured interest coverage ratio (minimum 2.00:1.00). Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business, and other customary affirmative and negative covenants.

The operating partnership was in compliance with its financial covenants as of March 31, 2017.

Repayment Guaranties

Sunset Gower Studios and Sunset Bronson Studios Loan

In connection with the loan secured by the Sunset Gower Studios and Sunset Bronson Studios properties, the Company has guaranteed in favor of and promised to pay to the lender 19.5% of the principal payable under the loan in the event the borrower, a wholly-owned entity of the operating partnership, does not do so. As of March 31, 2017, the outstanding balance was $5.0 million, which results in a maximum guarantee amount for the principal under this loan of $1.0 million. Furthermore, the Company agreed to guarantee the completion of the construction improvements, including tenant improvements, as defined in the agreement, in the event of any default of the borrower. If the borrower fails to complete the remaining required work, the guarantor agrees to perform timely all of the completion obligations, as defined in the agreement. As of the date of this filing, there has been no event of default associated with this loan.

Other Loans

Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities.

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Derivative Instruments

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

The Company enters into derivative instruments in order to hedge interest rate risk. The Company had six interest rate swaps with aggregate notional amounts of $839.5 million as of March 31, 2017 and December 31, 2016. These derivative instruments were designated as effective cash flow hedges for accounting purposes. There is no impact on the Company’s Consolidated Statements of Cash Flows.

The Company’s derivative instruments are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments.

5-Year Term Loan due April 2020 and 7-Year Term Loan due April 2022

On April 1, 2015, the Company effectively hedged $300.0 million of the 5-Year Term Loan due April 2020 through two interest rate swaps, each with a notional amount of $150.0 million, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.36% through the loan’s maturity. Therefore the interest rate is effectively fixed at 2.66% to 3.56%, depending on the Company’s leverage ratio. The unhedged portion bears interest at a rate equal to one-month LIBOR plus 1.30% to 2.20%, depending on the Company’s leverage ratio.

The Company also effectively hedged its $350.0 million7-Year Term Loan due April 2022 through two interest rate swaps, which, effective as of May 1, 2015, swapped one-month LIBOR to a fixed rate of 1.61% through the loan’s maturity. Therefore the interest rate is effectively fixed at 3.21% to 4.16% depending on the Company’s leverage ratio.

In July 2016, the derivative instruments described above were amended to include a 0.00% floor to one-month LIBOR, and then de-designated the original swap and designated the amended swap as a hedge in order to minimize the ineffective portion of the original derivative instruments. Therefore, the effective interest rate increased to a range of 2.75% to 3.65% with respect to $300.0 million of the 5-Year Term Loan due April 2020 and 3.36% to 4.31% with respect to the 7-year Term Loan due April 2022, in each case, per annum. The interest rate within the range is based on the operating partnership’s leverage ratio. The amount included in accumulated other comprehensive income (loss) prior to the de-designation is amortized into interest expense over the remaining original terms of the derivative instruments.

The Company recognized an unrealized gain of $6 thousand and an unrealized loss of $2.1 million for the three months endedMarch 31, 2017 and 2016, respectively, on the Consolidated Statement of Operations related to the ineffective portion of these derivative instruments.

7-Year Term Loan due November 2022

On May 3, 2016, the Company entered into a derivative instrument with respect to $125.0 million of the 7-Year Term Loan due November 2022. This derivative instrument became effective on June 1, 2016 and swapped one-month LIBOR, which includes a 0.00% floor, to a fixed rate of 1.43% through the loan’s maturity.

Met Park North

OnJuly 31, 2013, the Company closed a seven-year loan totaling $64.5 million with Union Bank, N.A., secured by the Met Park North property. The loan bears interest at a rate equal to one-month LIBOR plus 1.55%. The full loan is subject to an interest rate contract that swaps one-month LIBOR to a fixed rate of 2.16% through the loan’s maturity on August 1, 2020.

Overall

The fair market value of derivative instruments is presented on a gross basis in the Consolidated Balance Sheets. The derivative assets as of March 31, 2017 and December 31, 2016 were $8.6 million and $5.9 million, respectively. The derivative liabilities as of March 31, 2017 and December 31, 2016 were $1.0 million and $1.3 million, respectively.

The Company reclassifies into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2017, the Company expects $3.0 million of unrealized loss included in accumulated other comprehensive loss will be reclassified to interest expense in the next 12 months.

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. Provided that it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate level income tax on the earnings distributed currently to its stockholders. The Company has elected, together with one of its subsidiaries, to treat such subsidiary as a taxable REIT subsidiary (“TRS”) for federal income tax purposes.

The Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market Street and Hill7 properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities.

The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2017, the Company has not established a liability for uncertain tax positions.

The Company and its TRS file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRS are no longer subject to tax examinations by tax authorities for years prior to 2012. Generally, the Company has assessed its tax positions for all open years, which include 2012 to 2016, and concluded that there are no material uncertainties to be recognized.

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Future Minimum Base Rents and Lease Payments Future Minimum Rents

3 Months Ended

Mar. 31, 2017

Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract]

Future Minimum Base Rents and Lease Payments Future Minimum Rents

Future Minimum Base Rents and Lease Payments Future Minimum Rents

The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2017 to 2033. The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties as of March 31, 2017:

Year	Noncancellable		Subject to Early Termination Options		Total (1)
Remaining 2017	$	365,799	$	380	$	366,179
2018	457,963		23,024		480,987
2019	415,324		29,301		444,625
2020	340,628		20,368		360,996
2021	284,972		28,062		313,034
Thereafter	884,701		138,486		1,023,187
Total	$	2,749,387	$	239,621	$	2,989,008

_________________

(1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less.

Future Minimum Lease Payments

The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations:

Property	Expiration Date	Notes
11601 Wilshire	10/31/2064	Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in Consumer Price Index (“CPI”). On December 27, 2016, the Company entered into an agreement to purchase the land related to this ground lease for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.
3400 Hillview	10/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income multiplied by 24.125%. This lease has been prepaid through October 31, 2017.
9300 Wilshire	8/14/2032	The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%.
Clocktower Square	9/26/2056	Minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent.
Del Amo Office	6/30/2049	Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease.
Foothill Research Center	6/30/2039	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%.
Lockheed	7/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%.
Metro Center	4/29/2054	Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013).
Page Mill Center	11/30/2041	Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent.
Page Mill Hill	11/17/2049	Minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years.
Palo Alto Square	11/30/2045	Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent.
Sunset Gower Studios	3/31/2060	Every 7 years rent adjusts to 7.5% of FMV of the land.
Techmart Commerce Center	5/31/2053	Subject to a 10% increase every 5 years.

Contingent rental expense is recorded in the period in which the contingent event becomes probable. The Company recognized rent for ground leases and a corporate office lease as follows:

	Three Months Ended March 31,
	2017		2016
Contingent rental expense	$	2,184	$	2,337
Minimum rental expense	3,196		3,497

The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2017:

Years	Ground Leases (1)(2)
Remaining 2017	$	9,837
2018	14,613
2019	14,663
2020	14,663
2021	14,684
Thereafter	429,386
Total	$	497,846

_________________

(1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments, and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2017.

(2) Balance includes future minimum ground lease obligation for 11601 Wilshire. On December 27, 2016, the Company entered into an agreement to purchase the land related to the 11601 Wilshire ground lease. This transaction is expected to close in the third quarter of 2017, however, there can be no guaranty that the transaction will close.

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The GAAP fair value framework uses a three-tiered approach. Fair value measurements are classified and disclosed in one of the following three categories:

• Level 1: unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities;

• Level 2: quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and

• Level 3: prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable.

The Company measures fair value of financial instruments using Level 2 inputs categorized within the fair value framework. The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:

	March 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Derivative assets	$	—	$	8,558	$	—	$	8,558	$	—	$	5,935	$	—	$	5,935
Derivative liabilities	—		967		—		967		—		1,303		—		1,303

Other Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. Fair values for notes payable are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs. The table below represents the carrying value and fair value of the Company’s notes payable as of:

	March 31, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable(1)	$	2,407,196	$	2,381,057	$	2,707,839	$	2,681,134

_________________

(1) Amounts represent total notes payable excluding net deferred financing costs.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Company has various stock compensation arrangements, which are more fully described in the 2016 Annual Report on Form 10-K. Under the 2010 Incentive Plan, as amended (the “2010 Plan”), the Company’s board of directors (the “Board”) has the ability to grant, among other things, restricted stock, restricted stock units and performance-based awards.

The Board awards restricted shares to non-employee board members on an annual basis as part of such board members’ annual compensation and to newly elected non-employee board members in accordance with the Board compensation program. The time-based awards are generally issued in the second quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years.

The Board awards time-based restricted shares to employees on an annual basis as part of the employees’ annual compensation. The time-based awards are generally issued in the fourth quarter, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is generally three years. Additionally, certain restricted share awards are subject to a mandatory holding period upon vesting if the grantee is a named executive officer.

In December 2015, the Compensation Committee of the Board awarded a one-time special retention award to certain executives. The grants consist of time-based awards and performance-based awards. The time-based awards vest in equal 25% installments over four years, subject to the participant’s continued employment. The performance-based awards vest over a four-year period, subject to the achievement of applicable performance goals and the participant’s continued employment.

The Compensation Committee of the Board annually adopts a Hudson Pacific Properties, Inc. Outperformance Program (“OPP Plan”) under the 2010 Plan. An award under the OPP Plan is ultimately earned to the extent the Company outperforms a predetermined total shareholder return (“TSR”) goal and/or achieves goals with respect to the outperformance of its peers in a particular REIT index. The ultimate aggregate award cannot exceed the predetermined maximum bonus pool. With respect to OPP Plan awards granted prior to 2017, to the extent an award is earned following the completion of a three-year performance period, 50% of the earned award will vest in full at the end of the three-year performance period and 25% of the earned award will vest in equal annual installments over the two years thereafter, subject to the participant’s continued employment. OPP Plan awards granted are settled in common stock and in the case of certain executives, awards are settled in performance units in the operating partnership. In February 2017, the Compensation Committee adopted the 2017 OPP Plan. The 2017 OPP Plan is substantially similar to the previous OPP Plans except for (i) the performance period is January 1, 2017 to December 31, 2019 (ii) the maximum bonus pool is $20.0 million and (iii) the two -year post-performance vesting period was replaced with a two-year mandatory holding period upon vesting.

The per unit fair value of 2017 OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation:

Expected price volatility for the Company	24.00%
Expected price volatility for the particular REIT index	17.00%
Risk-free rate	1.47%
Dividend yield	2.30%

The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards:     

	Three Months Ended March 31,				Consolidated Financial Statement Classification
	2017		2016
Expensed stock compensation	$	3,902	$	3,342	General and administrative expenses
Capitalized stock compensation	199		82		Deferred leasing costs and lease intangibles, net and tenant improvements
Total stock compensation	$	4,101	$	3,424	Additional paid-in capital and non-controlling interest—units in the operating partnership

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Earnings Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The Company calculates basic earnings per share by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income available to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method or the if-converted method, whichever is more dilutive. Unvested time-based RSUs and unvested OPP awards that contain nonforfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders:

	Three Months Ended March 31,
	2017			2016
Numerator:
Net income	$	24,153		$	5,976
Income attributable to preferred units	(159		)	(159		)
Income attributable to participating securities	(240		)	(197		)
Income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Income attributable to non-controlling units of the operating partnership	(202		)	(1,422		)
Basic net income available to common stockholders	20,515			2,253
Effect of dilutive instruments	149			—
Diluted net income available to common stockholders	$	20,664		$	2,253
Denominator:
Basic weighted average common shares outstanding	147,950,594			89,190,803
Effect of dilutive instruments(1)	1,999,752			407,000
Diluted weighted average common shares outstanding	149,950,346			89,597,803
Basic earnings per common share	$	0.14		$	0.03
Diluted earnings per common share	$	0.14		$	0.03

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(1) The Company includes unvested awards and convertible common units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.

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Equity

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Equity

Equity

The table below present the effect of the Company’s derivative instruments on accumulated other comprehensive income (“OCI”):

	Hudson Pacific Properties, Inc. Stockholders’ Equity			Non-controlling Interest—Units in the Operating Partnership			Total Equity
Balance at January 1, 2017	$	9,496		$	(3,618	)	$	5,878
Unrealized gain recognized in OCI due to change in fair value	1,148			11			1,159
Loss reclassified from OCI into income (as interest expense)	1,688			17			1,705
Net change in OCI related to derivative instruments	2,836			28			2,864
Reclassification related to redemption of common units in the operating partnership	(3,622		)	3,622			—
Balance at March 31, 2017	$	8,710		$	32		$	8,742

Non-controlling Interests

Common units in the operating partnership

Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of the Company’s common stock in exchange for common units on a one-for-one basis. There were 569,045 and 9,450,620 common units outstanding as of March 31, 2017 and December 31, 2016, respectively. On January 10, 2017, common unitholders required the operating partnership to repurchase 8,881,575 common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the repurchase. The Company funded the repurchase using the proceeds from a registered underwritten public offering of common stock.

Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one unit of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis.

The operating partnership meets the criteria of a VIE and the Company is the primary beneficiary of the operating partnership.

Non-controlling interest—members in consolidated entities

The Company has an interest in a joint venture with Media Center Partners, LLC (the “Pinnacle JV”). The Pinnacle JV owns the Pinnacle, a two-building (Pinnacle I and Pinnacle II), 625,640-square-foot office property located in Burbank, California. The Company initially owned a 98.25% interest in the Pinnacle JV. Beginning June 2013, the Company owns a 65% interest in the Pinnacle JV.

In January 2015, the Company entered into a joint venture with Canada Pension Plan Investment Board, (“CPPIB”) through which CPPIB purchased a 45% interest in the 1455 Market Street office property located in San Francisco, California, for a purchase price of $219.2 million (before certain credits, proration and closing costs). The Company owns a 55% interest in the 1455 Market Street office property.

In October 2016, the Company entered into another joint venture with CPPIB to purchase the Hill7 office property located in Seattle, Washington for a purchase price of $179.8 million (before credits, prorations and closing costs). The Company owns a 55% interest in the Hill7 office property.

These joint ventures, of which the Company is the primary beneficiary, meet the criteria of a VIE.

6.25% Series A cumulative redeemable preferred units of the operating partnership

6.25% Series A cumulative redeemable preferred units of the operating partnership are 407,066 Series A preferred units of partnership interest in the operating partnership, or Series A preferred units, which are not owned by the Company. These Series A preferred units are entitled to preferential distributions at a rate of 6.25% per annum on the liquidation preference of $25.00 per unit and became convertible at the option of the holder into common units or redeemable into cash or, at the Company’s election, exchangeable for registered shares of common stock, after June 29, 2013. For a description of the conversion and redemption rights of the Series A preferred units, please see “Description of the Partnership Agreement of Hudson Pacific Properties, L.P.—Material Terms of Our Series A Preferred Units” in the Company’s June 23, 2010 Prospectus.

Common Stock Activity

On January 10, 2017, the Company completed a public offering of 8,881,575 shares of common stock of Hudson Pacific Properties, Inc. Proceeds from the offering were used to repurchase common units in the operating partnership.

On March 3, 2017, the Company completed another public offering of 9,775,000 shares of common stock. Proceeds from the offering were used to fully repay a $255.0 million balance outstanding under its unsecured revolving credit facility, with the remaining proceeds used for general corporate purposes.

The Company’s at-the-market, or ATM, program permits sales of up to $125.0 million of stock, $20.1 million of which has been sold as of March 31, 2017. The Company did not utilize the ATM program in the first quarter of 2017.

Share repurchase program

On January 20, 2016, the Board authorized a share repurchase program to buy up to $100.0 million of the outstanding common stock of Hudson Pacific Properties, Inc. No share repurchases have been made as of March 31, 2017.

Dividends

During the first quarter of 2017, the Company declared dividends on its common stock and non-controlling common partnership interests of $0.250 per share and unit. The Company also declared dividends on its Series A preferred partnership interests of $0.3906 per unit. The first quarter dividends were paid on March 30, 2017 to holders of record on March 20, 2017.

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, and compensation expense and in the basis of depreciable assets and estimated useful lives used to compute depreciation.

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Related Party Transactions

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

Employment Agreements

The Company has entered into employment agreements with certain executive officers, effective January 1, 2016, that provide for various severance and change in control benefits and other terms and conditions of employment.

Lease and Subsequent Purchase of Corporate Headquarters from Blackstone

On July 26, 2006, the Company’s predecessor, Hudson Capital, LLC, entered into a lease agreement and subsequent amendments with landlord Trizec Holdings Cal, LLC (an affiliate of Blackstone) for the Company’s corporate headquarters at 11601 Wilshire Boulevard. The Company amended the lease to increase its occupancy to 40,120 square feet commencing on September 1, 2015. On December 16, 2015, the Company entered into an amendment of that lease to expand the space to approximately 42,371 square feet and to extend the term by an additional three years, to a total of ten years, through August 31, 2025. On July 1, 2016, the Company purchased the 11601 Wilshire property from funds managed by Blackstone for $311.0 million (before credits, prorations and closing costs).

JMG Capital Lease at 11601 Wilshire

JMG Capital Management LLC leases approximately 6,638 square feet at the Company’s 11601 Wilshire property pursuant to an eight-year lease at an aggregate rate of approximately $279 thousand annualized rent per year. Jonathan M. Glaser, a director on the Board, is the founder and managing member of JMG Capital Management LLC. JMG Capital Management LLC was a tenant of the property at the time it was purchased by the Company.

222 Kearny Street Disposition

On February 14, 2017, the Company sold its 222 Kearny Street property to a joint venture, a partner of which is an affiliate of the Farallon Funds. Richard B. Fried, a director on the Board, is a managing member of the Farallon Funds.

Agreements Related to EOP Acquisition

On April 1, 2015, the Company completed the EOP Acquisition from certain affiliates of Blackstone, which consisted of 26 high-quality office assets totaling approximately 8.2 million square feet and two development parcels located throughout the San Francisco Peninsula, Redwood Shores, Palo Alto, Silicon Valley and North San Jose submarkets. The total consideration paid for the EOP Acquisition before certain credits, prorations and closing costs included a cash payment of $1.75 billion and an aggregate of 63,474,791 shares of common stock of Hudson Pacific Properties, Inc. and common units in the operating partnership. In connection with the EOP Acquisition, the Company, the operating partnership and Blackstone entered into a stockholders agreement, which conferred Blackstone certain rights, including the right to nominate up to three of the Company’s directors. Additionally, the Company entered into a registration rights agreement with Blackstone providing for customary registration rights with respect to the equity consideration paid in the EOP Acquisition. Following a common stock offering and common unit repurchase on January 10, 2017, the stockholders agreement and the registration rights agreement automatically terminated on that date.

Common Stock Offerings and Common Unit Redemptions

On January 10, 2017, the Company, Blackstone and the Farallon Funds completed a public offering of 18,673,808 shares of common stock, consisting of 8,881,575 shares offered by the Company and 9,792,233 shares offered by the selling stockholders. The offering generated net proceeds for the Company and the selling stockholders of approximately $310.9 million and $342.7 million, respectively, before expenses. The Company used the net proceeds that it received from the offering to redeem 8,881,575 common units held by Blackstone and the Farallon Funds.

The Company did not receive any proceeds from the sale of the common stock by the selling stockholders in the offerings described above but it paid approximately half of the expenses of the offerings with respect to the shares of common stock sold by the Farallon Funds and all of the expenses with respect to the shares of common stock sold by Blackstone, in each case, other than underwriting discounts, which were borne by the selling stockholders.

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal

From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of March 31, 2017, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote.

Concentrations

As of March 31, 2017, the majority of the Company’s properties were located in California, which exposes the Company to greater economic risks than if it owned a more geographically dispersed portfolio.

A significant portion of the Company’s rental revenue is derived from tenants in the media and entertainment and technology industries. As of March 31, 2017, approximately 15.8% and 28.5% of rentable square feet were related to the media and entertainment and technology industries, respectively.

As of March 31, 2017, the Company’s 15 largest tenants represented approximately 23.4% of its rentable square feet and no single tenant accounted for more than 10%.

Letters of Credit

As of March 31, 2017, the Company has outstanding letters of credit totaling approximately $2.6 million under the unsecured revolving credit facility. The letters of credit are primarily related to utility company security deposit requirements.

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Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On May 1, 2017, the Company completed its acquisition of Sunset Las Palmas Studios (formerly Hollywood Center Studios), a 369,000-square-foot media and entertainment campus located in Hollywood, California, for $200.0 million (before credits, prorations and closing costs). In April 2017, the Company drew $150.0 million under the unsecured revolving credit facility to fund the acquisition. The Company is currently in the process of determining the purchase price allocation.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation

The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to SEC rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented.

The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ended December 31, 2017. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2016 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.

Certain amounts in the consolidated financial statements for the prior period have been reclassified to conform to the current period presentation. Specifically, in the Consolidated Balance Sheets for the prior period, certain amounts have been reclassified to held for sale. These amounts relate to 3402 Pico Boulevard, which was sold on March 21, 2017.

Principles of Consolidation

The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly owned subsidiaries and variable interest entities (“VIEs”), of which the Company is the primary beneficiary. The unaudited interim consolidated financial statements of the operating partnership include the accounts of the operating partnership, and all wholly owned subsidiaries and VIEs of which the operating partnership is the primary beneficiary. All intercompany balances and transactions have been eliminated in the consolidated financial statements.

The Company consolidates all VIEs of which the Company is considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do not have the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties. The entity that consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the obligation to absorb losses of the VIE that could be significant to the VIE. Four of the Company’s joint ventures and its operating partnership meet the definition of a VIE. The Company is the primary beneficiary of and consolidates three of the joint ventures and the operating partnership. Refer to Note 16 for details. Substantially all of the assets and liabilities of the Company are related to these VIEs. The Company is not consolidating one of its joint ventures, of which it is not the primary beneficiary, and an interest in land. Due to its significant influence over these entities, the Company accounts for them using the equity method of accounting. Refer to Note 7 for details.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties, its accrued liabilities and its performance-based equity compensation awards. The Company bases its estimates on historical experience, current market conditions and various other assumptions that are believed to be reasonable under the circumstances. Actual results could materially differ from these estimates.

Recently Issued Accounting Pronouncements

Changes to GAAP are established by the Financial Accounting Standards Board (the “FASB”) in the form of Accounting Standards Update (“ASU”). The following ASUs were adopted by the Company in the first quarter of 2017:

Standard	Description	Effect on the financial statements or other significant matters
ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments—Equity Method and Joint Ventures (Topic 323): Amendments to SEC Paragraphs Pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF Meetings (SEC Update)	The guidance in this ASU is based on two SEC staff announcements made at the September 2016 and November 2016 EITF meetings. In the September meeting, the SEC announced that a registrant should disclose the potential material effects of the ASUs related to revenues, leases and credit losses on financial instruments. As a result of the November meeting, the ASU conforms Accounting Standards Codification (“ASC”) 323 to the guidance issued in ASU 2014-01 related to investments in qualified affordable housing projects.	With the adoption of this guidance, the Company is required to provide updates on its implementation of the ASUs related to revenue, leases and credit losses on financial instruments. Please refer to the table below for updates on the revenue and lease ASUs. The credit losses on financial instruments ASU is not anticipated to have a material impact on the Company.
ASU 2016-19, Technical Corrections and Improvements	The technical corrections make minor change to certain aspects of the FASB ASC, including changes to resolve differences between current and pre-Codification guidance, updates to wording, references to avoid misapplication and textual simplifications to increase the Codification’s utility and understandability and minor amendments to guidance that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-17, Consolidation (Topic 810): Interests Held through Related Parties That Are under Common Control	This guidance outlines how a single decisionmaker of a VIE should treat indirect interests held through other related parties that are under common control with the reporting entity when determining whether it is the primary beneficiary of that VIE.	The adoption did not have a material impact on the Company’s consolidated financial statements and did not change the consolidation conclusion.
ASU 2016-07, Investments—Equity Method and Joint Ventures (Topic 323), Simplifying the Transition to the Equity Method of Accounting	The guidance eliminates the requirement that an investor retrospectively apply equity method accounting when an investment that it had accounted for by another method initially qualifies for use of the equity method. The guidance also requires an investor that has an available-for-sale security that subsequently qualifies for the equity method to recognize in net income the unrealized holding gains or losses in accumulated other comprehensive income related to that security when it begins applying the equity method.	The adoption did not have a material impact on the Company’s consolidated financial statements.
ASU 2016-05, Derivatives and Hedging (Topic 815), Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships	The guidance states that the novation of a derivative contract (e.g., a change in the counterparty) in a hedge accounting relationship does not, in and of itself, require dedesignation of that hedge accounting relationship. The hedge accounting relationship could continue uninterrupted if all of the other hedge accounting criteria are met, including the expectation that the hedge will be highly effective when the creditworthiness of the new counterparty to the derivative contract is considered.	The adoption did not have a material impact on the Company’s consolidated financial statements.

As required by ASU 2017-03, the Company is providing updates to the revenue and lease standard on a quarterly basis, as follows:    

Standard	Description	Effect on the financial statements or other significant matters
ASU related to Revenue from Contracts with Customers (Topic 606)	The new revenue standard was amended through various ASU’s. The ASU’s that impact the Company are ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) and ASU 2014-09, Revenue from Contracts with Customers. ASU 2016-08 clarifies certain aspects of the principal-versus-agent guidance in its new revenue recognition standard related to the determination of whether an entity is a principal-versus-agent and the determination of the nature of each specified good or service. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers and specifically notes that lease contracts with customers are a scope exception.	The Company does not expect this guidance to have a material effect on revenue recognition as it relates to its leasing contracts until the adoption of ASU 2016-02, at which time the standard may affect revenue recognition as it relates to certain non-lease revenue components that are part of its leasing contracts. The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently evaluating this standard as it relates to media and entertainment other property-related revenue. The Company has the option of adopting this standard on either the full retrospective basis (to the beginning of its contracts) or modified retrospective method (from the beginning of the latest fiscal year of adoption). The Company plans on adopting the standard January 1, 2018 using the modified retrospective method.
ASU 2016-02, Leases	This guidance requires all lessees to record a lease liability at lease inception, with a corresponding right of use asset, except for short-term leases. Lessor accounting will not be fundamentally changed.	The Company has formed an implementation work team, completed training of the new standards with the implementation team, and begun review and documentation. The Company is currently in the process of evaluating the amount of assets and liabilities relating to right of use that will need to be recorded with respect to its leases where it is the lessee. Additionally, the standard will impact the way the Company will record revenue and leasing costs where it is the lessor. For leasing costs, the Company will no longer be able to capitalize internal leasing costs to the extent they are not directly attributable to the lease transaction. Accordingly, the Company anticipates that internal leasing costs will be expensed with the adoption of this standard. With respect to the lease revenue, the Company will need to break down its current revenue streams between leasing and non-leasing components. To the extent there are non-leasing components the Company will need to record them in accordance with ASC 606 (see above). The Company is still in the process of evaluating its existing leasing components to determine what effect, if any, this standard will have on its revenue recognition as it relates to its leases. The Company will adopt the standard using the retrospective method from the beginning of the first year presented on the consolidated statement of operations which is January 1, 2017.

The Company considers the applicability and impact of all ASUs. The following table lists the recently issued ASUs that have not been disclosed in the Company’s Annual Report on Form 10-K and have not been adopted by the Company. The list excludes those ASUs that are expected to have an immaterial impact on the Company’s consolidated financial statements.

Standard	Description	Effective Date	Effect on the financial statements or other significant matters
ASU 2017-05, Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets	The guidance clarifies the scope of ASC 610-20 on the sale or transfer of nonfinancial assets and in substance nonfinancial assets to noncustomers, including partial sales.	Effective for annual reporting periods (including interim periods) beginning after December 15, 2017	The Company is currently assessing the impact of this update on its consolidated financial statements and notes to the consolidated financial statements and plans to adopt this guidance in the first quarter in 2018.

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Investment in Real Estate (Tables)

3 Months Ended

Mar. 31, 2017

Real Estate [Abstract]

Schedule of properties sold

The following table summarizes the properties sold during the three months endedMarch 31, 2017. These properties were non-strategic assets to the Company’s portfolio:

Property	Date of Disposition	Square Feet	Sales Price(1) (in millions)
222 Kearny Street	February 14, 2017	148,797	$	51.8
3402 Pico Boulevard	March 21, 2017	50,687	35.0
Total dispositions		199,484	$	86.8

_________________ 

(1) Represents gross sales price before certain credits, prorations and closing costs.

Schedule of costs capitalized

The Company recognized the following capitalized costs during the periods presented:

	Three Months Ended March 31,
	2017		2016
Capitalized personnel costs	$	2,737	$	2,319
Capitalized interest	2,446		2,628

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Deferred Leasing Costs and Lease Intangibles, net (Tables)

3 Months Ended

Mar. 31, 2017

Leases [Abstract]

Schedule of deferred leasing cost and lease intangibles

The following summarizes the Company’s deferred leasing costs and lease intangibles as of:

	March 31, 2017			December 31, 2016
Above-market leases	$	22,823		$	23,430
Accumulated amortization	(13,738		)	(12,989		)
Above-market leases, net	9,085			10,441
Deferred leasing costs and in-place lease intangibles	376,056			378,540
Accumulated amortization	(154,381		)	(145,551		)
Deferred leasing costs and in-place lease intangibles, net	221,675			232,989
Below-market ground leases	71,423			71,423
Accumulated amortization	(5,538		)	(4,891		)
Below-market ground leases, net	65,885			66,532
Deferred leasing costs and lease intangible assets, net	$	296,645		$	309,962
Below-market leases	$	138,549		$	141,676
Accumulated amortization	(66,511		)	(62,552		)
Below-market leases, net	72,038			79,124
Above-market ground leases	1,095			1,095
Accumulated amortization	(100		)	(89		)
Above-market ground leases, net	995			1,006
Lease intangible liabilities, net	$	73,033		$	80,130

Schedule of amortization during period

The Company recognized the following amortization related to deferred leasing costs and lease intangibles:

	Three Months Ended March 31,
	2017		2016
Above-market leases(1)	$	1,356	$	3,719
Below-market leases(1)	7,088		8,570
Deferred leasing costs and in-place lease intangibles(2)	19,793		22,568
Above-market ground leases(3)	11		11
Below-market ground leases(3)	648		546

__________________ 

(1) Amortization is recorded in office rental income in the Consolidated Statements of Operations.

(2) Amortization is recorded in depreciation and amortization expense and office rental income in the Consolidated Statements of Operations.

(3) Amortization is recorded in office operating expenses in the Consolidated Statements of Operations.

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Accounts Receivable, net (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Schedule of accounts receivable, net

The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Accounts receivable	$	4,306		$	8,697
Allowance for doubtful accounts	(2,297		)	(1,845		)
Accounts receivable, net	$	2,009		$	6,852

The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Straight-line rent receivables	$	87,228		$	87,417
Allowance for doubtful accounts	(2,378		)	(136		)
Straight-line rent receivables, net	$	84,850		$	87,281

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Straight-line Rent Receivables, net (Tables)

3 Months Ended

Mar. 31, 2017

Receivables [Abstract]

Schedule of straight-line rent receivables, net

The following table summarizes the Company’s accounts receivable, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Accounts receivable	$	4,306		$	8,697
Allowance for doubtful accounts	(2,297		)	(1,845		)
Accounts receivable, net	$	2,009		$	6,852

The following table represents the Company’s straight-line rent receivables, net of allowance for doubtful accounts as of:

	March 31, 2017			December 31, 2016
Straight-line rent receivables	$	87,228		$	87,417
Allowance for doubtful accounts	(2,378		)	(136		)
Straight-line rent receivables, net	$	84,850		$	87,281

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Notes Payable, Net (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

The following table summarizes the balances of the Company’s indebtedness as of:

	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 the Company’s 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. 

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
UNSECURED LOANS
Unsecured Revolving Credit Facility(2)	$	—	$	—		$	300,000	$	—		LIBOR+ 1.15% to 1.85%	4/1/2019	(3)
5-Year Term Loan due April 2020(2)(4)	450,000		(3,243		)	450,000		(3,513		)	LIBOR+ 1.30% to 2.20%	4/1/2020
5-Year Term Loan due November 2020(2)	175,000		(697		)	175,000		(745		)	LIBOR +1.30% to 2.20%	11/17/2020
7-Year Term Loan due April 2022(2)(5)	350,000		(2,157		)	350,000		(2,265		)	LIBOR+ 1.60% to 2.55%	4/1/2022
7-Year Term Loan due November 2022(2)(6)	125,000		(892		)	125,000		(931		)	LIBOR +1.60% to 2.55%	11/17/2022
Series A Notes	110,000		(891		)	110,000		(930		)	4.34%	1/2/2023
Series E Notes	50,000		(289		)	50,000		(300		)	3.66%	9/15/2023
Series B Notes	259,000		(2,207		)	259,000		(2,271		)	4.69%	12/16/2025
Series D Notes	150,000		(874		)	150,000		(898		)	3.98%	7/6/2026
Series C Notes	56,000		(527		)	56,000		(539		)	4.79%	12/16/2027
TOTAL UNSECURED LOANS	1,725,000		(11,777		)	2,025,000		(12,392		)
MORTGAGE LOANS
Mortgage Loan secured by Rincon Center(7)	99,897		(158		)	100,409		(198		)	5.13%	5/1/2018
Mortgage Loan secured by Sunset Gower Studios/Sunset Bronson Studios	5,001		(1,357		)	5,001		(1,534		)	LIBOR+2.25%	3/4/2019	(3)
Mortgage Loan secured by Met Park North(8)	64,500		(370		)	64,500		(398		)	LIBOR+1.55%	8/1/2020
Mortgage Loan secured by 10950 Washington(7)	27,798		(337		)	27,929		(354		)	5.32%	3/11/2022
Mortgage Loan secured by Pinnacle I(9)(10)	129,000		(567		)	129,000		(593		)	3.95%	11/7/2022
Mortgage Loan secured by Element LA	168,000		(2,256		)	168,000		(2,321		)	4.59%	11/6/2025
Mortgage Loan secured by Pinnacle II(10)	87,000		(701		)	87,000		(720		)	4.30%	6/11/2026
Mortgage Loan secured by Hill7(11)	101,000		(1,285		)	101,000		(1,319		)	3.38%	11/6/2026
TOTAL MORTGAGE LOANS	682,196		(7,031		)	682,839		(7,437		)
TOTAL	$	2,407,196	$	(18,808	)	$	2,707,839	$	(19,829	)

_________________

(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) The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of March 31, 2017, no such election had been made.

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

(4) 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. See Note 10 for details.

(5) 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. See Note 10 for details.

(6) 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. See Note 10 for details.

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

(8) 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. See Note 10 for details.

(9) 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.

(10) The Company owns 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.

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

Schedule of maturities of long-term debt

The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the operating partnership’s secured and unsecured notes payable as of March 31, 2017:

Year	Annual Principal Payments
Remaining 2017	$	2,071
2018	101,157
2019	7,886
2020	692,493
2021	3,142
Thereafter	1,600,447
Total	$	2,407,196

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Future Minimum Base Rents and Lease Payments Future Minimum Rents (Tables)

3 Months Ended

Mar. 31, 2017

Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract]

Schedule of future minimum rental payments for operating leases

The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and without regard to cancellation options) for properties as of March 31, 2017:

Year	Noncancellable		Subject to Early Termination Options		Total (1)
Remaining 2017	$	365,799	$	380	$	366,179
2018	457,963		23,024		480,987
2019	415,324		29,301		444,625
2020	340,628		20,368		360,996
2021	284,972		28,062		313,034
Thereafter	884,701		138,486		1,023,187
Total	$	2,749,387	$	239,621	$	2,989,008

_________________

(1) Excludes rents under leases at the Company’s media and entertainment properties with terms of one year or less.

Schedule of acquired ground lease agreements

The following table summarizes the Company’s ground lease terms related to properties that are held subject to long-term noncancellable ground lease obligations:

Property	Expiration Date	Notes
11601 Wilshire	10/31/2064	Subject to a $50 thousand increase every 5 years. Commencing on August 1, 2026, minimum rent is adjusted to reflect changes in Consumer Price Index (“CPI”). On December 27, 2016, the Company entered into an agreement to purchase the land related to this ground lease for $50.0 million (before credits, prorations and closing costs). The transaction is expected to close in the third quarter of 2017, however there can be no guaranty that it will close as expected.
3400 Hillview	10/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent until October 31, 2017 is the lesser of 10% of Fair Market Value (“FMV”) of the land or $1.0 million grown at 75% of the cumulative increases in CPI from October 1989. Thereafter, minimum annual rent is the lesser of 10% of FMV of the land or the minimum annual rent as calculated as of November 1, 2017 plus 75% of subsequent cumulative CPI changes. Percentage annual rent is gross income multiplied by 24.125%. This lease has been prepaid through October 31, 2017.
9300 Wilshire	8/14/2032	The ground rent is the greater of minimum annual rent or percentage annual rent. Percentage annual rent is gross income multiplied by 6%.
Clocktower Square	9/26/2056	Minimum annual rent (adjusted every 10 years) plus 25% of adjusted gross income (“AGI”) less minimum annual rent.
Del Amo Office	6/30/2049	Rent under the ground sublease is $1.00 per year, with the sublessee being responsible for all impositions, insurance premiums, operating charges, maintenance charges, construction costs and other charges, costs and expenses that arise or may be contemplated under any provisions of the ground sublease.
Foothill Research Center	6/30/2039	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of CPI increase. Percentage annual rent is gross income multiplied by 24.125%.
Lockheed	7/31/2040	The ground rent is the greater of the minimum annual rent or percentage annual rent. The minimum annual rent is the lesser of 10% of FMV of the land or the previous year’s minimum annual rent plus 75% of consumer price index, or CPI, increase. Percentage annual rent is Lockheed’s base rent multiplied by 24.125%.
Metro Center	4/29/2054	Every 10 years rent adjusts to 7.233% of FMV of the land (since 2008) and rent also adjusts every 10 years to reflect the change in CPI from the preceding FMV adjustment date (since 2013).
Page Mill Center	11/30/2041	Minimum annual rent (adjusted on 1/1/2019 and 1/1/2029) plus 25% of AGI, less minimum annual rent.
Page Mill Hill	11/17/2049	Minimum annual rent (adjusted every 10 years) plus 60% of the average of the percentage annual rent for the previous 7 lease years.
Palo Alto Square	11/30/2045	Minimum annual rent (adjusted every 10 years starting 1/1/2022) plus 25% of AGI less minimum annual rent.
Sunset Gower Studios	3/31/2060	Every 7 years rent adjusts to 7.5% of FMV of the land.
Techmart Commerce Center	5/31/2053	Subject to a 10% increase every 5 years.

Schedule of rent expense

Contingent rental expense is recorded in the period in which the contingent event becomes probable. The Company recognized rent for ground leases and a corporate office lease as follows:

	Three Months Ended March 31,
	2017		2016
Contingent rental expense	$	2,184	$	2,337
Minimum rental expense	3,196		3,497

Schedule of future minimum lease payments

The following table provides information regarding the Company’s future minimum lease payments for its ground leases (before the impact of extension options, if applicable) as of March 31, 2017:

Years	Ground Leases (1)(2)
Remaining 2017	$	9,837
2018	14,613
2019	14,663
2020	14,663
2021	14,684
Thereafter	429,386
Total	$	497,846

_________________

(1) In situations where ground lease obligation adjustments are based on third-party appraisals of fair market land value, CPI adjustments, and/or percentage of gross income that exceeds the minimum annual rent, the future minimum lease amounts above include the lease rental obligations in effect as of March 31, 2017.

(2) Balance includes future minimum ground lease obligation for 11601 Wilshire. On December 27, 2016, the Company entered into an agreement to purchase the land related to the 11601 Wilshire ground lease. This transaction is expected to close in the third quarter of 2017, however, there can be no guaranty that the transaction will close.

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Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Schedule of estimated fair value of derivatives measured by level of fair value hierarchy

The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:

	March 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Derivative assets	$	—	$	8,558	$	—	$	8,558	$	—	$	5,935	$	—	$	5,935
Derivative liabilities	—		967		—		967		—		1,303		—		1,303

Schedule of carrying value and fair value of notes payable

The table below represents the carrying value and fair value of the Company’s notes payable as of:

	March 31, 2017				December 31, 2016
	Carrying Value		Fair Value		Carrying Value		Fair Value
Notes payable(1)	$	2,407,196	$	2,381,057	$	2,707,839	$	2,681,134

_________________

(1) Amounts represent total notes payable excluding net deferred financing costs.

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of fair value assumptions

The per unit fair value of 2017 OPP award granted was estimated on the date of grant using the following assumptions in the Monte Carlo valuation:

Expected price volatility for the Company	24.00%
Expected price volatility for the particular REIT index	17.00%
Risk-free rate	1.47%
Dividend yield	2.30%

Schedule of classification and amount recognized for stock-based compensation

The following table presents the classification and amount recognized for stock-based compensation related to the Company’s awards:     

	Three Months Ended March 31,				Consolidated Financial Statement Classification
	2017		2016
Expensed stock compensation	$	3,902	$	3,342	General and administrative expenses
Capitalized stock compensation	199		82		Deferred leasing costs and lease intangibles, net and tenant improvements
Total stock compensation	$	4,101	$	3,424	Additional paid-in capital and non-controlling interest—units in the operating partnership

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Schedule of earnings per share

The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share for net income available to common stockholders:

	Three Months Ended March 31,
	2017			2016
Numerator:
Net income	$	24,153		$	5,976
Income attributable to preferred units	(159		)	(159		)
Income attributable to participating securities	(240		)	(197		)
Income attributable to non-controlling interest in consolidated entities	(3,037		)	(1,945		)
Income attributable to non-controlling units of the operating partnership	(202		)	(1,422		)
Basic net income available to common stockholders	20,515			2,253
Effect of dilutive instruments	149			—
Diluted net income available to common stockholders	$	20,664		$	2,253
Denominator:
Basic weighted average common shares outstanding	147,950,594			89,190,803
Effect of dilutive instruments(1)	1,999,752			407,000
Diluted weighted average common shares outstanding	149,950,346			89,597,803
Basic earnings per common share	$	0.14		$	0.03
Diluted earnings per common share	$	0.14		$	0.03

________________

(1) The Company includes unvested awards and convertible common units as contingently issuable shares in the computation of diluted earnings per share once the market criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.

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Equity (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Comprehensive income (loss)

The table below present the effect of the Company’s derivative instruments on accumulated other comprehensive income (“OCI”):

	Hudson Pacific Properties, Inc. Stockholders’ Equity			Non-controlling Interest—Units in the Operating Partnership			Total Equity
Balance at January 1, 2017	$	9,496		$	(3,618	)	$	5,878
Unrealized gain recognized in OCI due to change in fair value	1,148			11			1,159
Loss reclassified from OCI into income (as interest expense)	1,688			17			1,705
Net change in OCI related to derivative instruments	2,836			28			2,864
Reclassification related to redemption of common units in the operating partnership	(3,622		)	3,622			—
Balance at March 31, 2017	$	8,710		$	32		$	8,742

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Organization - Narrative (Details) $ in Millions		3 Months Ended
	Apr. 01, 2015 USD ($) ft² project property shares	Mar. 31, 2017 ft² property
Business Acquisition [Line Items]
Number of real estate properties acquired (in properties)		0
Area of real estate property (in square feet) | ft²		199,484
Office Properties
Business Acquisition [Line Items]
Number of real estate properties (in properties)		52
Media and Entertainment Properties
Business Acquisition [Line Items]
Number of real estate properties (in properties)		2
EOP Northern California Portfolio
Business Acquisition [Line Items]
Area of real estate property (in square feet) | ft²	8,200,000
Gross payments to acquire business | $	$ 1,750
Consideration transferred, common units (in shares) | shares	63,474,791
EOP Northern California Portfolio | Office Building
Business Acquisition [Line Items]
Number of real estate properties acquired (in properties)	26
EOP Northern California Portfolio | Development Parcel
Business Acquisition [Line Items]
Number of development projects acquired (in projects) | project	2

XML

Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended
	Mar. 31, 2017 joint_venture
Variable Interest Entity [Line Items]
Number of joint ventures consolidated (in joint ventures)	4
Primary Beneficiary
Variable Interest Entity [Line Items]
Number of joint ventures consolidated (in joint ventures)	3
Not Primary Beneficiary
Variable Interest Entity [Line Items]
Number of joint ventures consolidated (in joint ventures)	1

XML

Investment in Real Estate - Summary of Property Sold (Details) $ in Thousands			3 Months Ended
	Mar. 21, 2017 USD ($) ft²	Feb. 14, 2017 USD ($) ft²	Mar. 31, 2017 USD ($) ft² property	Mar. 31, 2016 USD ($)	Dec. 31, 2016 property
Real Estate [Abstract]
Number of real estate properties acquired (in properties) | property			0
Real Estate [Line Items]
Area of real estate property (in square feet) | ft²			199,484
Sales Price			$ 86,800
Gains on sale of real estate			$ 16,866	$ 6,352
Number of properties held for sale (in properties) | property			0		2
222 Kearny Street
Real Estate [Line Items]
Area of real estate property (in square feet) | ft²		148,797
Sales Price		$ 51,800
3402 Pico Boulevard
Real Estate [Line Items]
Area of real estate property (in square feet) | ft²	50,687
Sales Price	$ 35,000

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Investment in Real Estate - Cost Capitalized (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Real Estate [Abstract]
Capitalized personnel costs	$ 2,737,000	$ 2,319,000
Capitalized interest	2,446,000	$ 2,628,000
Long-lived asset impairment charges	$ 0

XML

Deferred Leasing Costs and Lease Intangibles, net - Schedule of Finite-Lived Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets, Net [Abstract]
Deferred leasing costs and lease intangibles, net	$ 296,645		$ 309,962
Other Liabilities, Unclassified [Abstract]
Below and above market ground leases, net	73,033		80,130
Amortization of above- and below-market leases, net	(5,732)	$ (4,851)
Below Market Leases
Other Liabilities, Unclassified [Abstract]
Below and above market ground leases	138,549		141,676
Below and above market ground leases, accumulated amortization	(66,511)		(62,552)
Below and above market ground leases, net	72,038		79,124
Amortization of above- and below-market leases, net	7,088	8,570
Above Market Ground Leases
Other Liabilities, Unclassified [Abstract]
Below and above market ground leases	1,095		1,095
Below and above market ground leases, accumulated amortization	(100)		(89)
Below and above market ground leases, net	995		1,006
Amortization of above- and below-market leases, net	11	11
Above-market leases
Finite-Lived Intangible Assets, Net [Abstract]
Deferred leasing costs and lease intangibles	22,823		23,430
Accumulated amortization	(13,738)		(12,989)
Deferred leasing costs and lease intangibles, net	9,085		10,441
Other Liabilities, Unclassified [Abstract]
Amortization of above- and below-market leases, net	1,356	3,719
Deferred leasing costs and in-place lease intangibles
Finite-Lived Intangible Assets, Net [Abstract]
Deferred leasing costs and lease intangibles	376,056		378,540
Accumulated amortization	(154,381)		(145,551)
Deferred leasing costs and lease intangibles, net	221,675		232,989
Other Liabilities, Unclassified [Abstract]
Amortization of above- and below-market leases, net	19,793	22,568
Below-market ground leases
Finite-Lived Intangible Assets, Net [Abstract]
Deferred leasing costs and lease intangibles	71,423		71,423
Accumulated amortization	(5,538)		(4,891)
Deferred leasing costs and lease intangibles, net	65,885		$ 66,532
Other Liabilities, Unclassified [Abstract]
Amortization of above- and below-market leases, net	$ 648	$ 546

XML

Accounts Receivable, net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 4,306	$ 8,697
Allowance for doubtful accounts	(2,297)	(1,845)
Accounts receivable, net	$ 2,009	$ 6,852

XML

Straight-line Rent Receivables, net (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts	$ (2,297)	$ (1,845)
Straight-line rent receivables, net	84,850	87,281
Allowance for Straight-Line Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Straight-line rent receivables	87,228	87,417
Allowance for doubtful accounts	$ (2,378)	$ (136)

XML

Investment in Unconsolidated Entity (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Dec. 27, 2016	Jul. 01, 2016	Jun. 16, 2016
Schedule of Equity Method Investments [Line Items]
Assets associated with real estate held for sale	$ 38,546,000	$ 37,228,000
11601 Wilshire Boulevard Office Building
Schedule of Equity Method Investments [Line Items]
Real estate property, ownership (as a percent)				28.00%
Assets associated with real estate held for sale	7,800,000	7,800,000
Agreement to purchase outstanding interest in land			$ 50,000,000.0
Santa Clara, CA Joint Venture
Schedule of Equity Method Investments [Line Items]
Real estate property, ownership (as a percent)					21.00%
Assets associated with real estate held for sale	$ 30,700,000	$ 29,400,000

XML

Goodwill (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 8,754,000	$ 8,754,000
Goodwill impairment during period	$ 0

XML

Notes Payable, Net - Summary of Notes Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Notes payable	$ 2,407,196	$ 2,707,839
Less: deferred financing costs, net	(18,808)	(19,829)
Notes payable, net	2,388,388	2,688,010
Prepaid expenses and other assets, net
Short-term Debt [Line Items]
Deferred financing costs	$ 1,300	$ 1,500

XML

Notes Payable, Net - Summary of Outstanding Indebtedness (Details) - USD ($) $ in Thousands			3 Months Ended
	Apr. 01, 2015	Jul. 31, 2013	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Principal Amount			$ 2,407,196	$ 2,707,839
Deferred Financing Costs, net			(18,808)	(19,829)
Met Park North
Debt Instrument [Line Items]
Principal Amount		$ 64,500
Met Park North | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.55%
Unsecured Debt
Debt Instrument [Line Items]
Principal Amount			1,725,000	2,025,000
Deferred Financing Costs, net			(11,777)	(12,392)
Unsecured Debt | Revolving Credit Facility 2014
Debt Instrument [Line Items]
Principal Amount			0	300,000
Deferred Financing Costs, net			$ 0	0
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.15%		1.15%
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.85%		1.85%
Unsecured Debt | 5-Year Term Loan due April 2020
Debt Instrument [Line Items]
Principal Amount			$ 450,000	450,000
Deferred Financing Costs, net			$ (3,243)	(3,513)
Unsecured Debt | 5-Year Term Loan due April 2020 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.30%
Unsecured Debt | 5-Year Term Loan due April 2020 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.20%
Unsecured Debt | 5-Year Term Loan due November 2020
Debt Instrument [Line Items]
Principal Amount			$ 175,000	175,000
Deferred Financing Costs, net			$ (697)	(745)
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.30%
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.20%
Unsecured Debt | 7-Year Term Loan due April 2022
Debt Instrument [Line Items]
Principal Amount			$ 350,000	350,000
Deferred Financing Costs, net			$ (2,157)	(2,265)
Unsecured Debt | 7-Year Term Loan due April 2022 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.60%
Unsecured Debt | 7-Year Term Loan due April 2022 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.55%
Unsecured Debt | 7-Year Term Loan due November 2022
Debt Instrument [Line Items]
Principal Amount			$ 125,000	125,000
Deferred Financing Costs, net			$ (892)	(931)
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.60%
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.55%
Unsecured Debt | Series A Notes
Debt Instrument [Line Items]
Principal Amount			$ 110,000	110,000
Deferred Financing Costs, net			$ (891)	(930)
Interest Rate (as a percent)			4.34%
Unsecured Debt | Series E Notes
Debt Instrument [Line Items]
Principal Amount			$ 50,000	50,000
Deferred Financing Costs, net			$ (289)	(300)
Interest Rate (as a percent)			3.66%
Unsecured Debt | Series B Notes
Debt Instrument [Line Items]
Principal Amount			$ 259,000	259,000
Deferred Financing Costs, net			$ (2,207)	(2,271)
Interest Rate (as a percent)			4.69%
Unsecured Debt | Series D Notes
Debt Instrument [Line Items]
Principal Amount			$ 150,000	150,000
Deferred Financing Costs, net			$ (874)	(898)
Interest Rate (as a percent)			3.98%
Unsecured Debt | Series C Notes
Debt Instrument [Line Items]
Principal Amount			$ 56,000	56,000
Deferred Financing Costs, net			$ (527)	(539)
Interest Rate (as a percent)			4.79%
Secured Debt
Debt Instrument [Line Items]
Principal Amount			$ 682,196	682,839
Deferred Financing Costs, net			(7,031)	(7,437)
Secured Debt | Rincon Center
Debt Instrument [Line Items]
Principal Amount			99,897	100,409
Deferred Financing Costs, net			$ (158)	(198)
Interest Rate (as a percent)			5.13%
Secured Debt | Sunset Gower/Sunset Bronson
Debt Instrument [Line Items]
Principal Amount			$ 5,001	5,001
Deferred Financing Costs, net			$ (1,357)	(1,534)
Secured Debt | Sunset Gower/Sunset Bronson | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.25%
Secured Debt | Met Park North
Debt Instrument [Line Items]
Principal Amount			$ 64,500	64,500
Deferred Financing Costs, net			$ (370)	(398)
Secured Debt | Met Park North | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.15%
Secured Debt | 10950 Washington
Debt Instrument [Line Items]
Principal Amount			$ 27,798	27,929
Deferred Financing Costs, net			$ (337)	(354)
Interest Rate (as a percent)			5.32%
Secured Debt | Pinnacle I
Debt Instrument [Line Items]
Principal Amount			$ 129,000	129,000
Deferred Financing Costs, net			$ (567)	(593)
Interest Rate (as a percent)			3.95%
Secured Debt | Element LA
Debt Instrument [Line Items]
Principal Amount			$ 168,000	168,000
Deferred Financing Costs, net			$ (2,256)	(2,321)
Interest Rate (as a percent)			4.59%
Secured Debt | Pinnacle II
Debt Instrument [Line Items]
Principal Amount			$ 87,000	87,000
Deferred Financing Costs, net			$ (701)	(720)
Interest Rate (as a percent)			4.30%
Secured Debt | Hill7
Debt Instrument [Line Items]
Principal Amount			$ 101,000	101,000
Deferred Financing Costs, net			$ (1,285)	$ (1,319)
Interest Rate (as a percent)			3.38%

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Notes Payable, Net - Schedule of Maturities of Long-term Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Remaining 2017	$ 2,071
2018	101,157
2019	7,886
2020	692,493
2021	3,142
Thereafter	1,600,447
Total	$ 2,407,196	$ 2,707,839

XML

Notes Payable, Net - Narrative (Details)				3 Months Ended
	May 03, 2016 USD ($)	Apr. 01, 2015 USD ($) derivative	Jul. 31, 2013 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 31, 2016 USD ($) derivative	Jun. 01, 2016	May 01, 2015
Debt Instrument [Line Items]
Duration used in interest rate calculation (in days)				360 days
Notes payable				$ 2,407,196,000	$ 2,707,839,000
Joint Venture That Owns Pinnacle I and II
Debt Instrument [Line Items]
Real estate property, ownership (as a percent)				65.00%
Joint Venture With The Canadian Pension Plan Investment Board
Debt Instrument [Line Items]
Debt instrument, extension period (in years)				2 years
Real estate property, ownership (as a percent)				55.00%
Interest Rate Contract
Debt Instrument [Line Items]
Notional amount		$ 300,000,000				$ 300,000,000
Number of derivative instruments held (in derivatives) | derivative		2				2
7-Year Term Loan due November 2022 | Interest Rate Contract
Debt Instrument [Line Items]
Notional amount	$ 125,000,000
Rincon Center And 10950 Washington
Debt Instrument [Line Items]
Service payment term (in years)				30 years
Met Park North
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)				3.71%
Debt instrument, term (in years)			7 years
Notes payable			$ 64,500,000
Met Park North | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			1.55%
Pinnacle I
Debt Instrument [Line Items]
Service payment term (in years)				30 years
Debt instrument, term (in years)				5 years
A & R Credit Facilities | Hudson Pacific Partners L.P.
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 2,000,000,000
Maximum leverage ratio				0.60
Maximum unencumbered leverage ratio				0.60
Minimum fixed charge coverage ratio				1.50
Minimum unsecured interest coverage ratio				2.00
Sunset Gower/Sunset Bronson
Debt Instrument [Line Items]
Principal amount guaranteed (as a percent)				19.50%
Maximum exposure for guarantee				$ 1,000,000
Line of Credit | Hudson Pacific Partners L.P. | Revolving Credit Facility 2014
Debt Instrument [Line Items]
Debt instrument, extension period (in years)		1 year
Maximum borrowing capacity				400,000,000
Line of Credit | Credit Facility 2015 | Hudson Pacific Partners L.P. | Minimum
Debt Instrument [Line Items]
Credit facility, facility fee (as a percent)		0.20%
Line of Credit | Credit Facility 2015 | Hudson Pacific Partners L.P. | Maximum
Debt Instrument [Line Items]
Credit facility, facility fee (as a percent)		0.35%
Unsecured Debt
Debt Instrument [Line Items]
Notes payable				$ 1,725,000,000	2,025,000,000
Unsecured Debt | Revolving Credit Facility 2014
Debt Instrument [Line Items]
Debt instrument, extension period (in years)				1 year
Notes payable				$ 0	300,000,000
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.15%		1.15%
Unsecured Debt | Revolving Credit Facility 2014 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.85%		1.85%
Unsecured Debt | 5 Year Term Loan Facility 2015
Debt Instrument [Line Items]
Debt instrument, term (in years)		5 years
Unsecured Debt | 5 Year Term Loan Facility 2015 | LIBOR | Minimum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)						2.75%		2.66%
Unsecured Debt | 5 Year Term Loan Facility 2015 | LIBOR | Maximum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)						3.65%		3.56%
Unsecured Debt | 7 Year Term Loan Facility 2015
Debt Instrument [Line Items]
Number of derivative instruments held (in derivatives) | derivative						2
Debt instrument, term (in years)		7 years
Unsecured Debt | 7 Year Term Loan Facility 2015 | LIBOR | Minimum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)						3.36%		3.21%
Unsecured Debt | 7 Year Term Loan Facility 2015 | LIBOR | Maximum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)						4.31%		4.16%
Unsecured Debt | 5-Year Term Loan due November 2020
Debt Instrument [Line Items]
Notes payable				$ 175,000,000	175,000,000
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				1.30%
Unsecured Debt | 5-Year Term Loan due November 2020 | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				2.20%
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners L.P.
Debt Instrument [Line Items]
Debt instrument, term (in years)		5 years
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners L.P. | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.30%
Unsecured Debt | 5-Year Term Loan due November 2020 | Hudson Pacific Partners L.P. | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.20%
Unsecured Debt | 7-Year Term Loan due November 2022
Debt Instrument [Line Items]
Debt instrument, term (in years)	7 years
Notes payable				$ 125,000,000	125,000,000
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Minimum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)							3.03%
Basis spread on variable rate (as a percent)				1.60%
Unsecured Debt | 7-Year Term Loan due November 2022 | LIBOR | Maximum
Debt Instrument [Line Items]
Adjusted interest rate (as a percent)							3.98%
Basis spread on variable rate (as a percent)				2.55%
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners L.P.
Debt Instrument [Line Items]
Debt instrument, term (in years)		7 years
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners L.P. | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.60%
Unsecured Debt | 7-Year Term Loan due November 2022 | Hudson Pacific Partners L.P. | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2.55%
Unsecured Debt | Senior Notes | Hudson Pacific Partners L.P.
Debt Instrument [Line Items]
Maximum secured indebtedness leverage ratio				0.45
Secured Debt
Debt Instrument [Line Items]
Notes payable				$ 682,196,000	682,839,000
Secured Debt | Met Park North
Debt Instrument [Line Items]
Notes payable				$ 64,500,000	64,500,000
Secured Debt | Met Park North | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				1.15%
Secured Debt | Pinnacle I
Debt Instrument [Line Items]
Notes payable				$ 129,000,000	129,000,000
Secured Debt | Sunset Gower/Sunset Bronson
Debt Instrument [Line Items]
Debt instrument, extension period (in years)				1 year
Notes payable				$ 5,001,000	$ 5,001,000
Secured Debt | Sunset Gower/Sunset Bronson | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)				2.25%

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Derivative Instruments - Narrative (Details)				3 Months Ended
	May 03, 2016 USD ($)	Apr. 01, 2015 USD ($) derivative	Jul. 31, 2013 USD ($)	Mar. 31, 2017 USD ($) derivative	Mar. 31, 2016 USD ($)	Dec. 31, 2016 USD ($) derivative	Jul. 31, 2016 USD ($) derivative	Jun. 01, 2016	May 01, 2015
Derivative
Notes payable				$ 2,407,196,000		$ 2,707,839,000
Derivative assets				8,558,000		5,935,000
Derivative liabilities				967,000		1,303,000
Cash flow hedge adjustment				3,000,000
Level 2
Derivative
Derivative assets				8,558,000		5,935,000
Derivative liabilities				967,000		1,303,000
Unsecured Debt
Derivative
Notes payable				1,725,000,000		2,025,000,000
5 Year Term Loan Facility 2015 | Unsecured Debt
Derivative
Debt instrument, term (in years)		5 years
5 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Minimum
Derivative
Adjusted interest rate (as a percent)							2.75%		2.66%
5 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Maximum
Derivative
Adjusted interest rate (as a percent)							3.65%		3.56%
New Credit Agreement - Term Loan | Unsecured Debt | LIBOR | Minimum
Derivative
Basis spread on variable rate (as a percent)		1.30%
New Credit Agreement - Term Loan | Unsecured Debt | LIBOR | Maximum
Derivative
Basis spread on variable rate (as a percent)		2.20%
7 Year Term Loan Facility 2015 | Unsecured Debt
Derivative
Number of derivative instruments held (in derivatives) | derivative							2
Debt instrument, term (in years)		7 years
Face amount		$ 350,000,000
7 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Minimum
Derivative
Adjusted interest rate (as a percent)							3.36%		3.21%
7 Year Term Loan Facility 2015 | Unsecured Debt | LIBOR | Maximum
Derivative
Adjusted interest rate (as a percent)							4.31%		4.16%
7-Year Term Loan due November 2022 | Unsecured Debt
Derivative
Debt instrument, term (in years)	7 years
Notes payable				$ 125,000,000		$ 125,000,000
7-Year Term Loan due November 2022 | Unsecured Debt | LIBOR | Minimum
Derivative
Adjusted interest rate (as a percent)								3.03%
Basis spread on variable rate (as a percent)				1.60%
7-Year Term Loan due November 2022 | Unsecured Debt | LIBOR | Maximum
Derivative
Adjusted interest rate (as a percent)								3.98%
Basis spread on variable rate (as a percent)				2.55%
Met Park North
Derivative
Debt instrument, term (in years)			7 years
Adjusted interest rate (as a percent)				3.71%
Notes payable			$ 64,500,000
Met Park North | LIBOR
Derivative
Basis spread on variable rate (as a percent)			1.55%
Interest Rate Contract
Derivative
Number of derivative instruments held (in derivatives) | derivative		2					2
Notional amount		$ 300,000,000					$ 300,000,000
Interest Rate Contract | 5 Year Term Loan Facility 2015
Derivative
Fixed interest rate (as a percent)									1.36%
Interest Rate Contract | 7 Year Term Loan Facility 2015
Derivative
Fixed interest rate (as a percent)									1.61%
Unrealized gain on ineffective portion of derivative instruments				$ 6,000
Unrealized loss on ineffective portion of derivative instruments					$ 2,100,000
Interest Rate Contract | 7-Year Term Loan due November 2022
Derivative
Notional amount	$ 125,000,000
Fixed interest rate (as a percent)	1.43%
Interest Rate Contract | Met Park North | LIBOR
Derivative
Interest rate cap (as a percent)			2.16%
Interest Rate Contract, Instrument A | 5 Year Term Loan Facility 2015
Derivative
Notional amount of interest rate cash flow hedge derivatives		$ 150,000,000.0
Interest Rate Swap | 7 Year Term Loan Facility 2015 | Unsecured Debt
Derivative
Number of derivative instruments held (in derivatives) | derivative		2
Interest Rate Floor | 7-Year Term Loan due November 2022 | LIBOR
Derivative
Derivative, interest rate floor (as a percent)	0.00%
Designated as Hedging Instrument | LIBOR
Derivative
Derivative, interest rate floor (as a percent)							0.00%
Designated as Hedging Instrument | Interest Rate Cap
Derivative
Number of derivative instruments held (in derivatives) | derivative				6		6
Notional amount of interest rate cash flow hedge derivatives				$ 839,500,000		$ 839,500,000

XML

Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Mar. 31, 2017 USD ($)
Operating Leased Assets [Line Items]
Remaining 2017	$ 366,179
2018	480,987
2019	444,625
2020	360,996
2021	313,034
Thereafter	1,023,187
Total	2,989,008
Noncancellable
Operating Leased Assets [Line Items]
Remaining 2017	365,799
2018	457,963
2019	415,324
2020	340,628
2021	284,972
Thereafter	884,701
Total	2,749,387
Subject to Early Termination Options
Operating Leased Assets [Line Items]
Remaining 2017	380
2018	23,024
2019	29,301
2020	20,368
2021	28,062
Thereafter	138,486
Total	$ 239,621

XML

Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Ground Leases (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 27, 2016
11601 Wilshire
Operating Leased Assets [Line Items]
Agreement to purchase outstanding interest in land		$ 50,000,000
Ground Lease | 11601 Wilshire
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	5 years
Minimum annual rent calculation, annual increase	$ 50,000
Ground Lease | 3400 Hillview
Operating Leased Assets [Line Items]
Minimum annual rent calculation, percent of fair market value (as a percent)	10.00%
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	24.125%
Minimum annual rent calculation, percent of CPI, next five years (as a percent)	75.00%
Minimum annual rent calculation, percent of CPI, thereafter (as a percent)	75.00%
Minimum annual rent calculation, cumulative increases in consumer price index	$ 1,000,000
Ground Lease | 9300 Wilshire
Operating Leased Assets [Line Items]
Minimum annual rent calculation, percent of increase (as a percent)	6.00%
Ground Lease | Clocktower Square
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	10 years
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	25.00%
Ground Lease | Del Amo Office
Operating Leased Assets [Line Items]
Lease rent expense	$ 1
Ground Lease | Foothill Research Center
Operating Leased Assets [Line Items]
Minimum annual rent calculation, percent of fair market value (as a percent)	10.00%
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	24.125%
Minimum annual rent calculation, percent of CPI (as a percent)	75.00%
Ground Lease | Lockheed
Operating Leased Assets [Line Items]
Minimum annual rent calculation, percent of fair market value (as a percent)	10.00%
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	24.125%
Minimum annual rent calculation, percent of CPI (as a percent)	75.00%
Ground Lease | Metro Center
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	10 years
Minimum annual rent calculation, percent of fair market value (as a percent)	7.233%
Ground Lease | Page Mill Center
Operating Leased Assets [Line Items]
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	25.00%
Ground Lease | Page Mill Hill
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	10 years
Minimum annual rent calculation, percent of annual rent (as a percent)	60.00%
Ground Lease | Palo Alto Square
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	10 years
Percentage annual rent calculation, percent of AGI less minimum annual rent (as a percent)	25.00%
Ground Lease | Sunset Gower Studios
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	7 years
Minimum annual rent calculation, percent of fair market value (as a percent)	7.50%
Ground Lease | Techmart Commerce Center
Operating Leased Assets [Line Items]
Frequency of rent adjustments (in years)	5 years
Minimum annual rent calculation, percent of increase (as a percent)	10.00%

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Future Minimum Base Rents and Lease Payments Future Minimum Rents - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Future Minimum Base Rents and Lease Payments Future Minimum Rents [Abstract]
Contingent rental expense	$ 2,184	$ 2,337
Minimum rental expense	3,196	$ 3,497
Ground Lease
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remaining 2017	9,837
2018	14,613
2019	14,663
2020	14,663
2021	14,684
Thereafter	429,386
Total	$ 497,846

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Fair Value of Financial Instruments - Fair Value, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Derivative assets	$ 8,558	$ 5,935
Derivative liabilities	967	1,303
Notes payable	2,381,057	2,681,134
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Notes payable	2,407,196	2,707,839
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Derivative assets	0	0
Derivative liabilities	0	0
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Derivative assets	8,558	5,935
Derivative liabilities	967	1,303
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

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Stock-Based Compensation (Details) - USD ($)	1 Months Ended	3 Months Ended
	Dec. 31, 2015	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period (in years)		3 years
Vesting percentage after initial performance period (in years)		50.00%
Risk-free rate (as a percent)		1.47%
Dividend yield (as a percent)		2.30%
The Company
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility rate (as a percent)		24.00%
SNL Equity REIT Index
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility rate (as a percent)		17.00%
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		2 years
Existing and Newly Elected Board Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		3 years
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)		3 years
Employees | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	4 years
One-Time Retention Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights (as a percent)	25.00%	25.00%
Outperformance Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum bonus pool		$ 20,000,000.0
Mandatory holding period (in years)		2 years
Outperformance Program | Additional paid-in capital and non-controlling interest—units in the operating partnership
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 4,101,000	$ 3,424,000
Outperformance Program | General and administrative expenses
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		3,902,000	3,342,000
Outperformance Program | Deferred leasing costs and lease intangibles, net and tenant improvements
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 199,000	$ 82,000

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
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)
Income attributable to non-controlling units of the operating partnership	(202)	(1,422)
Net income (loss) attributable to common stockholders	20,515	2,253
Effect of dilutive instruments	149	0
Diluted net income available to common stockholders	$ 20,664	$ 2,253
Basic weighted average common shares outstanding (in shares)	147,950,594	89,190,803
Effect of dilutive instruments (in shares)	1,999,752	407,000
Diluted weighted average common shares outstanding (in shares)	149,950,346	89,597,803
Basic earnings per common share (in dollars per share)	$ 0.14	$ 0.03
Diluted earnings per common share (in dollars per share)	$ 0.14	$ 0.03

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Equity - Schedule of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 3,702,750	$ 3,729,037	$ 3,729,037
Comprehensive income (loss)	27,017	$ (9,499)
Reclassification related to redemption of common units in the operating partnership	(310,855)		(1,446,039)
Ending Balance	4,026,200		3,702,750
Total Equity
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	5,878
Unrealized gain recognized in OCI due to change in fair value	1,159
Loss reclassified from OCI into income (as interest expense)	1,705
Comprehensive income (loss)	2,864
Reclassification related to redemption of common units in the operating partnership	0
Ending Balance	8,742		5,878
Hudson Pacific Properties, Inc. Stockholders’ Equity
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	9,496
Unrealized gain recognized in OCI due to change in fair value	1,148
Loss reclassified from OCI into income (as interest expense)	1,688
Comprehensive income (loss)	2,836
Reclassification related to redemption of common units in the operating partnership	(3,622)
Ending Balance	8,710		9,496
Non-controlling Interest—Units in the Operating Partnership
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(3,618)
Unrealized gain recognized in OCI due to change in fair value	11
Loss reclassified from OCI into income (as interest expense)	17
Comprehensive income (loss)	28
Reclassification related to redemption of common units in the operating partnership	3,622
Ending Balance	$ 32		$ (3,618)

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Equity - Narrative (Details)			1 Months Ended		3 Months Ended		12 Months Ended
	Mar. 03, 2017 USD ($) shares	Jan. 10, 2017 USD ($) shares	Oct. 31, 2016 USD ($)	Jan. 31, 2015 USD ($)	Mar. 31, 2017 USD ($) ft² building $ / shares shares	Mar. 31, 2016 USD ($) $ / shares	Dec. 31, 2016 shares	Jan. 20, 2016 USD ($)	Jun. 30, 2013	Jun. 13, 2013
Class of Stock [Line Items]
Shares issued during period (in shares) | shares		18,673,808
Area of real estate property (in square feet) | ft²					199,484
Proceeds from issuance of common stock, net					$ 647,675,000	$ 0
Stock repurchase program authorized								$ 100,000,000
Common dividends declared (in usd per share) | $ / shares					$ 0.25	$ 0.200
At-the-Market
Class of Stock [Line Items]
Maximum shares authorized, value					$ 125,000,000
Proceeds from issuance of common stock, net					$ 20,100,000
Unsecured Debt | Revolving Credit Facility 2014
Class of Stock [Line Items]
Unsecured revolving credit facility outstanding	$ 255,000,000
Common Stock/Units
Class of Stock [Line Items]
Shares issued during period (in shares) | shares					18,656,575		47,010,695
6.25% series A cumulative redeemable preferred units of the Operating Partnership
Class of Stock [Line Items]
Interest rate of preferred stock (as a percent)					6.25%
Shares outstanding of preferred stock (in shares) | shares					407,066
Liquidation preference of preferred stock (dollars per share) | $ / shares					$ 25
Preferred dividends declared (dollars per share) | $ / shares					$ 0.3906
Hill7 Office Development
Class of Stock [Line Items]
Real estate property, ownership (as a percent)			55.00%
Pinnacle JV
Class of Stock [Line Items]
Number of buildings in property (in buildings) | building					2
Area of real estate property (in square feet) | ft²					625,640
Ownership interest in property (as a percent)									65.00%	98.25%
Canada Pension Plan Investment Board
Class of Stock [Line Items]
Ownership interest in property (as a percent)				45.00%
Hill7 Office Development
Class of Stock [Line Items]
Total consideration			$ 179,800,000
Performance units
Class of Stock [Line Items]
Conversion ratio					1
Hudson Pacific Properties, Inc.
Class of Stock [Line Items]
Shares issued during period (in shares) | shares	9,775,000	8,881,575
Proceeds from issuance of common stock, net		$ 310,900,000
Canada Pension Plan Investment Board | 1455 Market Street
Class of Stock [Line Items]
Ownership interest in property (as a percent)					55.00%
Total consideration				$ 219,200,000
Common Stock/Units
Class of Stock [Line Items]
Common units held by noncontrolling interests (in shares) | shares					569,045		9,450,620
Common dividends declared (in usd per share) | $ / shares					$ 0.025

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Related Party Transactions - Narrative (Details) $ in Thousands						3 Months Ended
	Mar. 03, 2017 shares	Jan. 10, 2017 USD ($) shares	Jul. 01, 2016 USD ($) ft²	Dec. 16, 2015 ft²	Apr. 01, 2015 USD ($) ft² project property director shares	Mar. 31, 2017 USD ($) ft² property	Mar. 31, 2016 USD ($)	Sep. 01, 2015 ft²
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²						199,484
Number of real estate properties acquired (in properties) | property						0
Shares issued during period (in shares) | shares		18,673,808
Proceeds from issuance of common stock, net						$ 647,675	$ 0
Common units redeemed (in shares) | shares		8,881,575
EOP Northern California Portfolio
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²					8,200,000
Gross payments to acquire business					$ 1,750,000
Consideration transferred, common units (in shares) | shares					63,474,791
EOP Northern California Portfolio | Office Building
Related Party Transaction [Line Items]
Number of real estate properties acquired (in properties) | property					26
EOP Northern California Portfolio | Development Parcel
Related Party Transaction [Line Items]
Number of development projects acquired (in projects) | project					2
Hudson Pacific Properties, Inc.
Related Party Transaction [Line Items]
Shares issued during period (in shares) | shares	9,775,000	8,881,575
Proceeds from issuance of common stock, net		$ 310,900
Blackstone Real Estate Partners
Related Party Transaction [Line Items]
Number of director nominees to the board (in directors) | director					3
Blackstone And Farallon Funds
Related Party Transaction [Line Items]
Shares issued during period (in shares) | shares		9,792,233
Proceeds from issuance of common stock, net		$ 342,700
11601 Wilshire Boulevard Office Building
Related Party Transaction [Line Items]
Operating leases, term of contract (in years)			8 years
Total consideration			$ 311,000
Area of leased property (in square feet) | ft²			6,638
Annual rent cost per year			$ 279
Blackstone Real Estate Partners
Related Party Transaction [Line Items]
Area of real estate property (in square feet) | ft²				42,371				40,120
Operating leases, renewal term (in years)				3 years
Operating leases, term of contract (in years)				10 years

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Commitments and Contingencies - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2017 USD ($) tenant
Unsecured Debt | Revolving Credit Facility
Loss Contingencies
Letters of credit, amount outstanding | $	$ 2.6
Rentable Square Feet | Customer Concentration Risk
Loss Contingencies
Concentration risk (as a percent)	23.40%
Number of tenants (in tenants) | tenant	15
Rentable Square Feet | Customer Concentration Risk | Media And Entertainment Sector
Loss Contingencies
Concentration risk (as a percent)	15.80%
Rentable Square Feet | Customer Concentration Risk | Technology Sector
Loss Contingencies
Concentration risk (as a percent)	28.50%

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Subsequent Events (Details) $ in Millions		1 Months Ended
	May 01, 2017 USD ($) ft²	Apr. 30, 2017 USD ($)	Mar. 31, 2017 ft²
Subsequent Event [Line Items]
Area of real estate property (in square feet) | ft²			199,484
Subsequent Event | Revolving Credit Facility
Subsequent Event [Line Items]
Proceeds from unsecured revolving credit facility | $		$ 150.0
Sunset Las Palmas Studios | Subsequent Event
Subsequent Event [Line Items]
Area of real estate property (in square feet) | ft²	369,000
Total consideration | $	$ 200.0