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Equity

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Equity

Equity

The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive (loss) income (“OCI”):

			Derivative Instruments						Currency Translation Adjustments						Total Equity
Balance at January 1, 2018			$	13,227					$	—					$	13,227
Unrealized gain recognized in OCI			7,331						—						7,331
Reclassification from OCI into income			(3,287)						—						(3,287)
Net change in OCI			4,044						—						4,044
Cumulative adjustment related to adoption of ASU 2017-12			230						—						230
Balance at December 31, 2018			17,501						—						17,501
Unrealized (loss) gain recognized in OCI			(14,438)						1,830						(12,608)
Reclassification from OCI into income			(5,454)						—						(5,454)
Net change in OCI			(19,892)						1,830						(18,062)
Balance at December 31, 2019			(2,391)						1,830						(561)
Unrealized (loss) gain recognized in OCI			(14,407)						1,415						(12,992)
Reclassification from OCI into income			5,420						—						5,420
Net change in OCI			(8,987)						1,415						(7,572)
Balance at December 31, 2020			$	(11,378)					$	3,245					$	(8,133)

The table below presents the activity related to Hudson Pacific Properties, LP’s accumulated OCI:

			Derivative Instruments						Currency Translation Adjustments						Total Equity
Balance at January 1, 2018			$	13,276					$	—					$	13,276
Unrealized gain recognized in OCI			7,358						—						7,358
Reclassification from OCI into income			(3,300)						—						(3,300)
Net change in OCI			4,058						—						4,058
Cumulative adjustment related to adoption of ASU 2017-12			231						—						231
Balance at December 31, 2018			17,565						—						17,565
Unrealized (loss) gain recognized in OCI			(14,533)						1,845						(12,688)
Reclassification from OCI into income			(5,490)						—						(5,490)
Net change in OCI			(20,023)						1,845						(18,178)
Balance at December 31, 2019			(2,458)						1,845						(613)
Unrealized (loss) income recognized in OCI			(14,471)						1,394						(13,077)
Reclassification from OCI into income			5,444						—						5,444
Net change in OCI			(9,027)						1,394						(7,633)
Balance at December 31, 2020			$	(11,485)					$	3,239					$	(8,246)

Non-controlling Interests

Common Units in the Operating Partnership

Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash equal to the then-current market value of one share of common stock or, at the Company’s election, issue shares of the Company’s common stock in exchange for common units on a one-for-one basis.

Performance Units in the Operating Partnership

Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events, and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis.

Ownership Interest in the Operating Partnership

The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units as of:

						December 31, 2020						December 31, 2019						December 31, 2018
Company-owned common units in the operating partnership						151,401,365						154,691,052						154,371,538
Company’s ownership interest percentage						99.1		%				99.4		%				99.6		%
Non-controlling common units in the operating partnership(1)						1,321,083						911,858						569,045
Non-controlling ownership interest percentage						0.9		%				0.6		%				0.4		%

_________________ 

1.Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of December 31, 2020, this amount represents both common units and performance units of 550,969 and 770,114, respectively. As of December 31, 2019, this amount represents both common units and performance units of 550,969 and 360,889, respectively. As of December 31, 2018, this amount represents common units of 569,045.

During the years ended December 31, 2020 and 2019, 409,225 and 360,889 performance units, respectively, were granted and vested related to various performance-based awards to our employees and directors. No performance units were granted during the year ended December 31, 2018.

During the year ended December 31, 2019, 18,076 common units of the operating partnership were redeemed at the request of common unitholders. 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 redemption using the proceeds from a registered underwritten public offering of common stock. No common unit redemptions were completed during the years ended December 31, 2020 and 2018.

Common Stock Activity

The Company has not completed any common stock offerings during the years ended December 31, 2020, 2019 and 2018.

The Company’s ATM program permits sales of up to $125.0 million of common stock. A cumulative total of $20.1 million has been sold as of December 31, 2020. The Company did not utilize the ATM program during the years ended December 31, 2020, 2019 and 2018.

Share Repurchase Program

The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million of its common stock under the share repurchase program. During the year ended December 31, 2020, the Company repurchased 3.5 million shares at a weighted average price of $23.00 per share for $80.1 million, before transaction costs. No shares were repurchased during the year ended December 31, 2019. During the year ended December 31, 2018, the Company repurchased 1.6 million shares at a weighted average price of $30.48 per share for $50.0 million, before transaction costs. Since the commencement of the program through December 31, 2020, a cumulative total of $130.1 million had been repurchased. Share repurchases are accounted for on the trade date. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors.     

Dividends

The Board declared dividends on a quarterly basis and the Company paid the dividends during the quarters in which the dividends were declared. The following table summarizes dividends declared and paid for the periods presented:

			For the Year Ended December 31,
			2020						2019						2018
Common stock(1)			$	1.00					$	1.00					$	1.00
Common units (1)			$	1.00					$	1.00					$	1.00
Series A preferred units (1)			$	1.5625					$	1.5625					$	1.5625

_________________ 

1.The fourth quarter 2020 dividends were paid on December 31, 2020 to shareholders and unitholders of record on December 21, 2020.

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation.

The Company’s dividends related to its common stock will be classified for U.S. federal income tax purposes as follows (unaudited):

									Ordinary Dividends									Capital Gains
Record Date			Payment Date			Distribution Per Share			Total			Non-Qualified			Qualified			Total			Long Term			Unrecaptured Section 1250			Nondividend Distributions
3/20/2020			3/30/2020			$	0.25000		$	0.00000		$	0.00000		$	0.00000		$	0.25000		$	0.20325		$	0.04675		$	0.00000
6/19/2020			6/29/2020			0.25000			0.00000			0.00000			0.00000			0.25000			0.20325			0.04675			0.00000
9/18/2020			9/28/2020			0.25000			0.00000			0.00000			0.00000			0.25000			0.20325			0.04675			0.00000
12/21/2020			12/31/2020			0.25000			0.00000			0.00000			0.00000			0.25000			0.20325			0.04675			0.00000
			TOTALS			$	1.00000		$	0.00000		$	0.00000		$	0.00000		$	1.00000		$	0.81300		$	0.18700		$	0.00000
						100.00		%	0.00		%							100.00		%							0.00		%

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- References

No definition available.

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- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-URI http://asc.fasb.org/topic&trid=2208762

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