Earnings Per Share

12 Months Ended

Dec. 31, 2020

Hudson Pacific Properties, Inc.

The Company calculates basic earnings per share by dividing the net income or loss available to common stockholders for the period by the weighted average number of common shares outstanding during the period. The Company calculates diluted earnings per share by dividing the diluted net income or loss 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 restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable 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 the Company’s basic and diluted earnings per share for net income available to common stockholders:


	For the Year Ended December 31,
	2020		2019		2018
Numerator:
Basic net income available to common stockholders	$	383	$	42,725	$	98,090
Effect of dilutive instruments	—		331		—
Diluted net income available to common stockholders	$	383	$	43,056	$	98,090
Denominator:
Basic weighted average common shares outstanding	153,126,027		154,404,427		155,445,247
Effect of dilutive instruments(1)	42,998		2,197,981		251,239
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	153,169,025		156,602,408		155,696,486
Basic earnings per common share	$	0.00	$	0.28	$	0.63
Diluted earnings per common share	$	0.00	$	0.28	$	0.63

_____________

1.The Company includes unvested awards and convertible common and participating 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.

The operating partnership calculates basic earnings per unit by dividing the net income or loss available to common unitholders for the period by the weighted average number of common units outstanding during the period. The Company calculates diluted earnings per unit by dividing the diluted net income or loss 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 restricted unit awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable 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 the operating partnership’s basic and diluted earnings per unit for net income available to common unitholders:


	For the Year Ended December 31,
	2020		2019		2018
Numerator:
Basic and diluted net income available to common unitholders	$	393	$	42,954	$	98,448


Denominator:
Basic weighted average common units outstanding	154,040,775		155,094,997		156,014,292
Effect of dilutive instruments(1)	42,998		1,017,605		251,239
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING	154,083,773		156,112,602		156,265,531
Basic earnings per common unit	$	0.00	$	0.28	$	0.63
Diluted earnings per common unit	$	0.00	$	0.28	$	0.63

_____________

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.