Earnings Per Share

Earnings Per Share of Hudson Pacific Properties, Inc.

Hudson Pacific Properties, Inc. 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. Hudson Pacific Properties, Inc. 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 Hudson Pacific Properties, Inc.’s basic and diluted earnings per share for net income available to common stockholders:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Numerator:
Net income	$	6,954		$	4,035		$	31,107		$	10,011
Income attributable to preferred units	(159		)	(159		)	(318		)	(318		)
Income attributable to participating securities	(255		)	(196		)	(495		)	(393		)
Income attributable to non-controlling interest in consolidated entities	(2,974		)	(2,396		)	(6,011		)	(4,341		)
Income attributable to non-controlling units of the operating partnership	(13		)	(445		)	(215		)	(1,867		)
Basic and diluted net income available to common stockholders	$	3,553		$	839		$	24,068		$	3,092
Denominator:
Basic weighted average common shares outstanding	155,290,559			95,145,496			151,640,853			92,168,432
Effect of dilutive instruments⁽¹⁾	805,044			850,000			791,044			832,000
Diluted weighted average common shares outstanding	156,095,603			95,995,496			152,431,897			93,000,432
Basic earnings per common share	$	0.02		$	0.01		$	0.16		$	0.03
Diluted earnings per common share	$	0.02		$	0.01		$	0.16		$	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.

Earnings Per Share of Hudson Pacific Properties, L.P.

Hudson Pacific Properties, L.P. calculates basic earnings per share by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Hudson Pacific Properties, L.P. calculates diluted earnings per share by dividing the diluted net income available to common unitholders for the period by the weighted average number of common units 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 unit pursuant to the two-class method. The following table reconciles the numerator and denominator in computing Hudson Pacific Properties, L.P.’s basic and diluted earnings per unit for net income available to common unitholders:



	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Numerator:
Net income	$	6,954		$	4,035		$	31,107		$	10,011
Income attributable to preferred units	(159		)	(159		)	(318		)	(318		)
Income attributable to participating securities	(255		)	(196		)	(495		)	(393		)
Income attributable to non-controlling interest in consolidated entities	(2,974		)	(2,396		)	(6,011		)	(4,341		)
Basic and diluted net income available to common unitholders	$	3,566		$	1,284		$	24,283		$	4,959
Denominator:
Basic weighted average common units outstanding	155,859,604			145,549,363			152,647,055			145,518,523
Effect of dilutive instruments⁽¹⁾	805,044			850,000			791,045			832,000
Diluted weighted average common units outstanding	156,664,648			146,399,363			153,438,100			146,350,523
Basic earnings per common unit	$	0.02		$	0.01		$	0.16		$	0.03
Diluted earnings per common unit	$	0.02		$	0.01		$	0.16		$	0.03

________________


(1)	The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit 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 unit calculation.