EX-12.1 4 a201710kex121computationof.htm EXHIBIT 12.1
Exhibit 12.1
HUDSON PACIFIC PROPERTIES, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDENDS
(Unaudited; in thousands, except ratios)

| Consolidated
| For the year ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |
Net income (loss) from continuing operations before income from unconsolidated joint ventures | 91,492 |  |  | 42,106 |  |  | (16,082 | ) |  | 23,686 |  |  | 1,415 |
Plus: |  |  |  |  |  |  |  |  |
Fixed Charges (see below) | 103,023 |  |  | 89,668 |  |  | 58,951 |  |  | 33,685 |  |  | 30,925 |
Distributions from unconsolidated entities | 3,329 |  |  | 1,188 |  |  | — |  |  | — |  |  | — |
Amortization of capitalized interest | 867 |  |  | 577 |  |  | 410 |  |  | 232 |  |  | 115 |
Less: |  |  |  |  |  |  |  |  |
Capitalized interest | (10,655 | ) |  | (11,307 | ) |  | (6,516 | ) |  | (6,938 | ) |  | (4,562 | )
Preferred distributions of consolidated subsidiaries | (636 | ) |  | (636 | ) |  | (636 | ) |  | (641 | ) |  | (749 | )
Noncontrolling interest in income of subsidiaries that have not incurred fixed charges | (12,191 | ) |  | (9,577 | ) |  | (5,837 | ) |  | — |  |  | — |
Total Earnings | 175,229 |  |  | 112,019 |  |  | 30,290 |  |  | 50,024 |  |  | 27,144 |
Fixed Charges |  |  |  |  |  |  |  |  |
Interest expense (including amortization of loan fees and discounts) | 90,037 |  |  | 76,044 |  |  | 50,667 |  |  | 25,932 |  |  | 25,470 |
Capitalized interest | 10,655 |  |  | 11,307 |  |  | 6,516 |  |  | 6,938 |  |  | 4,562 |
Preferred distributions of consolidated subsidiaries | 636 |  |  | 636 |  |  | 636 |  |  | 641 |  |  | 749 |
Estimate of interest within rental expense | 1,695 |  |  | 1,681 |  |  | 1,132 |  |  | 174 |  |  | 144 |
Total Fixed Charges | 103,023 |  |  | 89,668 |  |  | 58,951 |  |  | 33,685 |  |  | 30,925 |
Preferred Dividends | — |  |  | — |  |  | 11,469 |  |  | 12,144 |  |  | 12,144 |
Distributions on redemption of preferred units | — |  |  | — |  |  | 5,970 |  |  | — |  |  | — |
Combined fixed charges and preferred dividends | 103,023 |  |  | 89,668 |  |  | 76,390 |  |  | 45,829 |  |  | 43,069 |
Earnings to Fixed Charges |  |  |  |  |  |  |  |  |
Ratio | 1.70 |  |  | 1.25 |  |  |  |  | 1.49 |  |  |
Deficiency |  |  |  |  | $ | 28,661 |  |  |  |  | $ | 3,781 |
Earnings to Combined Fixed Charges |  |  |  |  |  |  |  |  |
Ratio | 1.70 |  |  | 1.25 |  |  |  |  | 1.09 |  |  |
Deficiency |  |  |  |  | $ | 46,100 |  |  |  |  | $ | 15,925 |