Earnings Per Share

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,
	2018		2017		2018		2017
Numerator:
Basic and diluted net income available to common stockholders	$	16,202	$	3,553	$	64,779	$	24,068
Denominator:
Basic weighted average common shares outstanding	155,636,636		155,290,559		155,631,375		151,640,853
Effect of dilutive instruments⁽¹⁾	953,591		805,044		932,591		791,044
Diluted weighted average common shares outstanding	156,590,227		156,095,603		156,563,966		152,431,897
Basic earnings per common share	$	0.10	$	0.02	$	0.42	$	0.16
Diluted earnings per common share	$	0.10	$	0.02	$	0.41	$	0.16

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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.

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,
	2018		2017		2018		2017
Numerator:
Basic and diluted net income available to common unitholders	$	16,261	$	3,566	$	65,015	$	24,283
Denominator:
Basic weighted average common units outstanding	156,205,681		155,859,604		156,198,825		152,647,055
Effect of dilutive instruments⁽¹⁾	953,591		805,044		932,591		791,045
Diluted weighted average common units outstanding	157,159,272		156,664,648		157,131,416		153,438,100
Basic earnings per common unit	$	0.10	$	0.02	$	0.42	$	0.16
Diluted earnings per common unit	$	0.10	$	0.02	$	0.41	$	0.16

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(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.