XML 52 R34.htm IDEA: XBRL DOCUMENT v3.6.0.2
Equity (Tables)
 12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
The tables below present the effect of the Company’s derivative financial instruments on accumulated other comprehensive loss (“OCI”):
 
Hudson Pacific Properties, Inc. Stockholder’s Equity
 
Non-controlling interests
 
Total Equity
Balance at January 1, 2014
$
997

 
$
165

 
$
1,162

Unrealized loss recognized in OCI due to change in fair value
1,870

 
69

 
1,939

Loss reclassified from OCI into income (as interest expense)
(424
)
 
(16
)
 
(440
)
Net Change in OCI
1,446

 
53

 
1,499

Balance at December 31, 2014
2,443

 
218

 
2,661

 
 
 
 
 
 
Unrealized loss recognized in OCI due to change in fair value
4,976

 
2,687

 
7,663

Loss reclassified from OCI into income (as interest expense)
(6,338
)
 
(3,922
)
 
(10,260
)
Net Change in OCI
(1,362
)
 
(1,235
)
 
(2,597
)
Balance at December 31, 2015
1,081

 
(1,017
)
 
64

 
 
 
 
 
 
Unrealized (income) loss recognized in OCI due to change in fair value
(4,122
)
 
6,989

 
2,867

Loss reclassified from OCI into income (as interest expense)
(6,455
)
 
(2,354
)
 
(8,809
)
Net change in OCI
(10,577
)
 
4,635

 
(5,942
)
Balance at December 31, 2016
$
(9,496
)
 
$
3,618

 
$
(5,878
)
Non-controlling Interests
The following table summarizes the activity related to common units from January 1, 2015 to December 31, 2016:
 
Non-controlling interest in common units
Balance at January 1, 2015
2,382,563

April issuance (1)
54,848,480

April redemption (2)
(934,728
)
Balance at December 31, 2015
56,296,315

May redemption (3)
(10,117,223
)
July redemption (3)
(19,195,373
)
November redemption (3)
(17,533,099
)
Balance at December 31, 2016 (4)
9,450,620

_____________
(1)
The Company issued common units to Blackstone as consideration for the EOP Acquisition.
(2)
One of our common unitholders required us to repurchase common units and the Company elected, in accordance with our limited partnership agreement, to issue shares of our common stock in exchange for the common units to satisfy the redemption notice.
(3)
The common unitholders requested the operating partnership repurchase common units and the Company elected, in accordance with the limited partnership agreement of the operating partnership, to settle in cash to satisfy the redemption. The Company funded the redemptions using the proceeds from registered underwritten public offering of common stock.
(4)
On January 10, 2017, Blackstone and Farallon Capital Management, LLC (“Farallon Funds”) sold their ownership interests in the operating partnership following the completion of a common stock offering and common unit repurchase. Refer to Note 15 for additional details.
Reconciliation Of Equity From Statement Of Equity To Statement Of Operations
The following table reconciles the net income (loss) allocated to common stock and operating partnership units on the Consolidated Statements of Equity to the common stock and the common unit net income (loss) allocation on the Consolidated Statements of Operations for the years ended:
 
 
Hudson Pacific Properties, Inc.
 
Hudson Pacific Properties, L.P.
 
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net income (loss) allocation for common stock or common units on the Consolidated Statements of Equity
 
$
27,984

 
$
(10,071
)
 
$
10,229

 
$
33,832

 
$
(32,040
)
 
$
10,588

Net income attributable to participating securities
 
(766
)
 
(356
)
 
(274
)
 
(766
)
 
(356
)
 
(274
)
Series B transaction costs allocation
 
—

 
(5,970
)
 
—

 
—

 
(5,970
)
 
—

Net income (loss) allocation for common stock/common units on the Consolidated Statements of Operations
 
$
27,218

 
$
(16,397
)
 
$
9,955

 
$
33,066

 
$
(38,366
)
 
$
10,314
Schedule of Dividends
The Company’s dividends related to its common stock (CUSIP #444097109) will be classified for United States federal income tax purposes as follows (unaudited):

 
 
 
 
 
 
Ordinary Dividends
 
 
 
 
Record Date
 
Payment Date
 
Distributions Per Share
 
Total
 
Non-qualified
 
Qualified
 
Capital Gain Distributions(1)
 
Return of Capital
3/20/2016
 
3/30/2016
 
$
0.20000

 
$
0.14542

 
$
0.14542

 
$
—

 
$
0.02447

 
$
0.03011

6/20/2016
 
6/30/2016
 
0.20000

 
0.14542

 
0.14542

 
—

 
0.02447

 
0.03011

9/20/2016
 
9/30/2016
 
0.20000

 
0.14542

 
0.14542

 
—

 
0.02447

 
0.03011

12/19/2016
 
12/29/2016
 
0.20000

 
0.14542

 
0.14542

 
—

 
0.02447

 
0.03011

 
 
Totals
 
$
0.80000

 
$
0.58168

 
$
0.58168

 
$
—

 
$
0.09788

 
$
0.12044

 
 
 
 
100
%
 
72.71
%
 
 
 
 
 
12.24
%
 
15.05
%

_____________
(1)
$0.00540 of the $0.02447 capital gain distributions should be characterized as unrecaptured Section 1250 gain.
Schedule of Common Stock Offering
The following table summarizes the common stock offering in 2014, 2015 and 2016:
 
 
Number of Common Shares
January 28, 2014 (1)
 
9,487,500
January 20, 2015 (2)
 
12,650,000
April 1, 2015 (3)
 
8,626,311
May 16, 2016 (4)
 
10,117,223
July 21, 2016 (4)
 
19,195,373
November 28, 2016 (4)
 
17,533,099
_____________
(1)
Represents a common stock offering of 8,250,000 shares of common stock and the exercise of the underwriter’s option to purchase an additional 1,237,500 shares of our common stock at the public offering price of $21.50 per share. Total proceeds from the public offering, after underwriter’s discount, were approximately $195.8 million (before transaction costs).
(2)
Represents a common stock offering of 11,000,000 shares of common stock and the exercise of the underwriter’s option to purchase an additional 1,650,000 shares of our common stock at the public offering price of $31.75 per share. Total proceeds from the public offering, after underwriter’s discount, were approximately $385.6 million (before transaction costs).
(3)
Represents a common stock issuance in connection with the EOP Acquisition. The issuance of common stock is part of the consideration paid.
(4)
Proceeds from the offering were used to repurchase common units in the operating partnership.
The following table summarizes the ATM activity:
 
 
2016
 
2015
 
2014
Shares of common stock sold during the period
 
165,000
 
—
 
76,000
Common stock price ranges
 
$33.54 to $33.95
 
N/A
 
$21.92 to $22.07