Earnings Per Share

12 Months Ended

Dec. 31, 2023

Hudson Pacific Properties, Inc.

The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“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 Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2023, 2022 and 2021, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount.

The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net (loss) income available to common stockholders:


	For the Year Ended December 31,
	2023		2022		2021
Numerator:
Basic and diluted net (loss) income available to common stockholders	$	(192,181)	$	(56,499)	$	6,064


Denominator:
Basic weighted average common shares outstanding	140,953,088		143,732,433		151,618,282
Effect of dilutive instruments(1)	—		—		325,078
DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	140,953,088		143,732,433		151,943,360
Basic earnings per common share	$	(1.36)	$	(0.39)	$	0.04
Diluted earnings per common share	$	(1.36)	$	(0.39)	$	0.04

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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 or performance 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 using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. 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 unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2023, 2022 and 2021, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower earnings per unit amount.

The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net (loss) income available to common unitholders:


	For the Year Ended December 31,
	2023		2022		2021
Numerator:
Basic and diluted net (loss) income available to common unitholders	$	(195,539)	$	(57,208)	$	6,125


Denominator:
Basic weighted average common units outstanding	143,421,154		145,580,928		153,007,287
Effect of dilutive instruments(1)	—		—		325,078
DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING	143,421,154		145,580,928		153,332,365
Basic earnings per common unit	$	(1.36)	$	(0.39)	$	0.04
Diluted earnings per common unit	$	(1.36)	$	(0.39)	$	0.04

_____________

1.The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance 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.