Equity

3 Months Ended

Mar. 31, 2021

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


	Derivative Instruments		Currency Translation Adjustments		Total Equity
BALANCE AT DECEMBER 31, 2020	$	(11,378)	$	3,245	$	(8,133)
Unrealized gains recognized in OCI	24		996		1,020
Reclassification adjustment for realized gains(1)	1,786		—		1,786
Net change in OCI	1,810		996		2,806
BALANCE AT MARCH 31, 2021	$	(9,568)	$	4,241	$	(5,327)

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1.The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations.

The table below presents the activity related to Hudson Pacific Properties, L.P.’s OCI:


	Derivative Instruments		Currency Translation Adjustments		Total Capital
BALANCE AT DECEMBER 31, 2020	$	(11,485)	$	3,239	$	(8,246)
Unrealized gains recognized in OCI	24		1,009		1,033
Reclassification adjustment for realized gains(1)	1,811		—		1,811
Net change in OCI	1,835		1,009		2,844
BALANCE AT MARCH 31, 2021	$	(9,650)	$	4,248	$	(5,402)

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1.The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations.

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 at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such 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.

Current Year Activity

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


	March 31, 2021		December 31, 2020
Company-owned common units in the operating partnership	150,760,631		151,401,365
Company’s ownership interest percentage	99.1	%	99.1	%
Non-controlling units in the operating partnership(1)	1,381,624		1,321,083
Non-controlling ownership interest percentage	0.9	%	0.9	%

_________________

1.Represents common units held by certain of the Company’s executive officers, directors and outside investors. As of March 31, 2021, this amount represents both common units and performance units in the amount of 550,969 and 830,655, respectively. As of December 31, 2020, this amount represents both common units and performance units in the amount of 550,969 and 770,114, respectively.

Common Stock Activity

The Company has not completed any common stock offerings during the three months ended March 31, 2021.

The Company’s at-the-market (“ATM”) program permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during the three months ended March 31, 2021. A cumulative total of $20.1 million has been sold as of March 31, 2021.

Share Repurchase Program

The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million under its share repurchase program. During the three months ended March 31, 2021, the Company repurchased $14.7 million of its common stock, before transaction costs. Since commencement of the program, a cumulative total of $144.9 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 declares dividends on a quarterly basis and the Company pays the dividends during the quarters in which the dividends are declared. The following table summarizes dividends declared and paid for the periods presented:


	Three Months Ended March 31,
	2021		2020
Common stock	$	0.25	$	0.25
Common units	$	0.25	$	0.25
Series A preferred units	$	0.3906	$	0.3906
Performance units	$	0.25	$	0.25
Payment date	March 29, 2021		March 30, 2020
Record date	March 19, 2021		March 20, 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.