Net Income of $0.03 per Diluted Share

FFO of $0.48 per Diluted Share (Excluding Specified Items)

Same-store office and studio cash NOI increased 2.6% and 6.4%, respectively

Over 524,000 Square Feet of Office Leases Executed

GAAP and cash rent growth of 12.2% and 2.4%, respectively

Stabilized and in-service office portfolios 92.7% and 91.7% leased, respectively

Remaining 2021 office lease expirations just 6.5% of Company's Share of ABR

Collected 98% of Q1 Total Rents

Includes 99% for office and 100% for studio properties

Collected 99% of previously deferred rents owed first quarter

$1.0 Billion Total Liquidity and No Material Maturities Until 2023

Q2 2021 FFO Guidance of $0.46 to $0.48 per Diluted Share (Excluding Specified Items)

Hudson Pacific Properties, Inc. (the "Company" or "Hudson Pacific") (NYSE: HPP) today announced financial results for the first quarter 2021.

Management Comments & Industry Outlook

Victor Coleman, Hudson Pacific Properties' Chairman and CEO, said:

"With a growing percentage of the population vaccinated and case numbers declining concurrently, companies are formalizing and even accelerating plans to return to the office. We are seeing this in our conversations with current and prospective tenants, and more broadly in the increase in tenant tours and requirements across our markets. Both our first quarter leasing activity, in terms of volume, and our current leasing pipeline, that is, deals in leases, LOIs or proposals, are back on par with our long-term averages. Quarter after quarter, our rent collections are in the high-90 percent range, and we are now successfully collecting essentially all previously deferred rents due for payment.

"Our focus on thriving tech and media industries; our high-quality, growth-oriented tenants; our premier, modern portfolio; along with our ample liquidity and excellent JV partners ideally position us for a post-COVID era and beyond. We remain focused on growth. In addition to One Westside, which will deliver nearly 600,000 square feet fully pre-leased to Google in first quarter of next year, our future development pipeline totals over three million square feet, of which 40% are prime studio-related opportunities. We are also actively evaluating a number of value-add office and studio acquisition opportunities, and look forward to sharing more on this front as potential transactions progress."

Consolidated Financial & Operating Results

For first quarter 2021 compared to first quarter 2020:

• Net income attributable to common stockholders of $5.0 million, or $0.03 per diluted share, compared to net income of $10.8 million, or $0.07 per diluted share;
• FFO, excluding specified items, of $73.5 million, or $0.48 per diluted share, compared to $84.6 million, or $0.54 per diluted share;
  • Specified items consisting of a one-time, prior-period supplemental property tax expense related to ICON, CUE and Sunset Bronson of $1.1 million, or $0.01 per diluted share, compared to transaction-related expenses of $0.1 million, or $0.00 per diluted share, and a one-time straight-line rent reserve of $2.6 million, or $0.02 per diluted share;
• FFO, including specified items, of $72.5 million, or $0.48 per diluted share, compared to $81.9 million, or $0.52 per diluted share;
• Total revenue increased 3.3% to $213.1 million;
• Total operating expenses increased 7.4% to $179.2 million; and
• Interest expense increased 14.6% to $30.3 million.

Office Segment Results

Financial & operating

For first quarter 2021 compared to first quarter 2020:

• Total revenue increased 3.1% to $192.1 million. Primary factors include:
  • Revenue from the acquisition of 1918 Eighth, the reversal of reserves against uncollected cash rents and straight-line rent receivables for two material tenants, and lower bad debt reserves, all partially offset by lower parking revenue stemming from COVID-19 impacted occupancy, and reserves against uncollected cash rents and straight-line rent receivables for certain tenants related to COVID-19;
• Operating expenses increased 4.2% to $66.6 million. Primary factors include:
  • Expenses associated with the aforementioned acquisition of 1918 Eighth and one-time supplemental property tax expense for prior periods on ICON and CUE, all partially offset by lower variable operating expenses (i.e. utilities, janitorial, parking) due to lower COVID-19 impacted occupancy; and
• Net operating income and cash net operating income for the 43 consolidated same-store office properties decreased 3.7% and increased 2.6%, respectively. Adjusted for the one-time supplemental property tax expense on ICON and CUE, net operating income and cash net operating income for the same-store office properties would have decreased by 2.9% and increased by 3.6%, respectively.

Leasing

• Stabilized and in-service office portfolios were 92.7% and 91.7% leased, respectively; and
• Executed 42 new and renewal leases totaling 524,353 square feet with GAAP and cash rent growth of 12.2% and 2.4%, respectively. Note that first quarter leasing activity included two large essentially at market renewals in Palo Alto totaling approximately 250,000 square feet, as well as an approximately 35,000-square-foot expansion lease in Seattle at a slightly below market contractual rate. Adjusting for these deals as well as short-term extensions results in cash rent growth of 6.9%.

Studio Segment Results

Financial & operating

For first quarter 2021 compared to first quarter 2020:

• Total revenue increased 5.9% to $21.0 million. Primary factors include:
  • Higher service and other revenue stemming from the resumption of production activity, largely at Sunset Gower and Sunset Las Palmas, as shelter-in-place restrictions eased;
• Total operating expenses increased 7.5% to $11.5 million, primarily due to the aforementioned increase in production activity; and
• Net operating income and cash net operating income for the three same-store studio properties increased 4.1% and 6.4%, respectively. Adjusted for the one-time supplemental property tax expense at Sunset Bronson, net operating income and cash net operating income for the same-store studio properties would have increased by 5.2% and 7.5%, respectively.

Leasing

• Trailing 12-month occupancy for the three same-store studio properties was 89.6%.

Leasing Activity

Executed significant leases across the portfolio

• Google renewed its 207,857-square-foot lease through November 2028 at 3400 Hillview in Palo Alto.
• Company 3 signed a 70,285-square-foot lease commencing April 2021 through March 2033 at Harlow in Hollywood.
• Lockheed Martin Corporation renewed its 42,899-square-foot lease through May 2026 at 3176 Porter in Palo Alto.
• Amazon leased an additional 35,524 square feet at 1918 Eighth in Seattle, commencing June 2021 through September 2030.

Balance Sheet

As of the end of the first quarter 2021:

• $2.8 billion of the Company's share of unsecured and secured debt and preferred units (net of cash and cash equivalents) resulting in a leverage ratio of 39.8%.
• Approximately $1.0 billion of total liquidity comprised of:
  • $134.3 million of unrestricted cash and cash equivalents;
  • $600.0 million of undrawn capacity under the unsecured revolving credit facility; and
  • $255.6 million of undrawn capacity under the construction loan secured by One Westside and 10850 Pico.
• Investment grade credit rated with 65.9% unsecured and 86.5% fixed-rate debt and a weighted average maturity of 5.5 years.

Dividend

Paid common dividend

• The Company's Board of Directors declared a dividend on its common stock of $0.25 per share, equivalent to an annual rate of $1.00 per share.

Capital Transactions

Repurchased 0.6 million shares of common stock

The Company repurchased 0.6 million shares of common stock at an average price of $23.32 per share using liquidity generated from recapitalization of the Hollywood Media Portfolio.

ESG Leadership

Pledged $20 million to address homelessness

On February 11, Hudson Pacific pledged $20 million over the next five years to increase affordable housing and support individuals and families experiencing homelessness. The comprehensive program will include both impact investments and philanthropic donations in the Company's core markets. As part of this commitment, Hudson Pacific invested $3 million with SDS Capital Group’s Supportive Housing Fund, which in turn invests in the development of permanent, supportive housing across Los Angeles and the San Francisco Bay Area.

COVID-19 Update

Continued strong rent collections

During the first quarter, the Company collected 98% of its combined contractual rents, comprised of 99% from office tenants, 100% from studio tenants and 54% from storefront retail tenants. April collections remain consistent with these levels.

With respect to the collection of deferred rents, the Company collected 99% of the combined contractually deferred rents which became due and payable over the quarter.

Activities Subsequent to First Quarter 2021

Signed renewal lease with Dell EMC Corporation in Seattle

On April 16, the Company signed a 46,472-square-foot renewal lease with Dell EMC Corporation commencing October 2021 through January 2027. Effective upon commencement, Dell EMC Corporation will surrender 138,820 square feet, resulting in 89,426 square feet of on-going occupancy.

Issued 2020 Corporate Responsibility Report

On April 22, Hudson Pacific published its 2020 Corporate Responsibility Report, which details the Company's accomplishments across its Better Blueprint^TM focus areas of Sustainability, Health and Equity. Highlights include achieving 100% carbon neutral operations and establishing a new science-based climate target; boosting LEED, ENERGY STAR, and Fitwel certifications for the Company's in-service office portfolio to 80%, 71%, and 23%, respectively; receiving Fitwel Viral Response certification for the Company's COVID-19 response; initiating in-depth diversity, equity and inclusion (DEI) training for all employees, including management; establishing a 2025 target for 15% of contractors on-site at (re)development projects to be local and/or diverse; fast-tracking over $650,000 to struggling and traditionally under-represented artists in Los Angeles through the Vibrant Cities Arts Grant program; donating over $1 million to its communities (4.6% of net earnings); and pledging $20 million over five years to invest or donate into innovative homelessness and housing solutions.

FFO Guidance

The Company is providing second quarter 2021 guidance in the range of $0.46 to $0.48 per diluted share excluding specified items. There are no specified items in connection with this guidance.

The FFO estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements. It otherwise excludes any impact from future unannounced or speculative acquisitions, dispositions, debt financings or repayments, recapitalizations, capital markets activity or similar matters. There can be no assurance that actual results will not differ materially from this estimate.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, including the information under "FFO Guidance" above, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding Hudson Pacific's first quarter 2021 results may be found on the Investors section of the Company's website at HudsonPacificProperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will hold a conference call to discuss first quarter 2021 financial results at 11:00 a.m. PT / 2:00 p.m. ET on May 6, 2021. Please dial (877) 407-0784 to access the call. International callers should dial (201) 689-8560. A live, listen-only webcast can be accessed via the Investors section of the Company's website at HudsonPacificProperties.com, where a replay of the call will be available. A replay will also be available beginning May 6, 2021 at 2:00 p.m. PT / 5:00 p.m. ET, through May 20, 2021 at 8:59 p.m. PT / 11:59 p.m. ET, by dialing (844) 512-2921 and entering the passcode 13718483. International callers should dial (412) 317-6671 and enter the same passcode.

About Hudson Pacific Properties

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 20 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Google, Netflix, Riot Games, Square, Uber and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP and listed as a component of the S&P MidCap 400 Index. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

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