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Sincerely yours,
Victor J. Coleman
Chief Executive Officer and Chairman of the Board of Directors |
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By Order of the Board of Directors,
Kay L. Tidwell
Executive Vice President, General Counsel, Chief Risk Officer and Secretary |
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This Proxy Statement and accompanying proxy card are available beginning April 1, 2022 in connection with the solicitation of proxies by the Board of Directors of Hudson Pacific Properties, Inc. for use at the 2022 Annual Meeting of Stockholders, which we may refer to alternatively as the “Annual Meeting.” We may refer to ourselves in this Proxy Statement alternatively as the “Company,” “we,” “us” or “our” and we may refer to our Board of Directors as the “Board.” A copy of our Annual Report to Stockholders for the 2021 fiscal year, including financial statements, is being sent simultaneously with this Proxy Statement to each stockholder.
Important Notice Regarding Availability of Proxy Materials for the Stockholder Meeting to be Held on May 19, 2022: The Notice of Annual Meeting of Stockholders, the Proxy Statement and our 2021 Annual Report are available at www.edocumentview.com/HPP.
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| Compensation Committee Report | | | | | 63 | | |
| Compensation Committee Interlocks and Insider Participation | | | | | 63 | | |
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| Review and Approval of Transactions with Related Parties | | | | | 66 | | |
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| Householding of Proxy Materials | | | | | 67 | | |
| Stockholder Proposals | | | | | 67 | | |
| Incorporation by Reference | | | | | 68 | | |
| Other Matters | | | | | 68 | | |
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| Funds from Operations | | | | | A-1 | | |
| Net Operating Income | | | | | A-2 | | |
| Adjusted EBITDAre and Consolidated Net Debt | | | | | A-3 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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PROPOSAL
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BOARD RECOMMENDATION
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PAGE
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Proposal No. 1: Election of Directors
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FOR each nominee
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6
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Proposal No. 2: Ratification of Independent Registered Public Accounting Firm
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FOR
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| Proposal No. 3: Advisory Approval of Executive Compensation (“Say-On-Pay Vote”) | | |
FOR
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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The Board unanimously recommends that the stockholders vote “FOR” the 10 director nominees.
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NAME
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AGE
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AUDIT
COMMITTEE |
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COMPENSATION
COMMITTEE |
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GOVERNANCE
COMMITTEE |
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INVESTMENT
COMMITTEE |
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SUSTAINABILITY
COMMITTEE |
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Victor J. Coleman*
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60
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Theodore R. Antenucci†
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57
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Karen Brodkin†
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Ebs Burnough†
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42
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Richard B. Fried†
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54
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Chairperson
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Jonathan M. Glaser†
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59
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Robert L. Harris II†
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63
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Christy Haubegger†
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53
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Chairperson
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Mark D. Linehan†
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59
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Chairperson
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| Andrea Wong† | | |
55
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Chairperson
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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EXECUTIVE
LEADERSHIP EXPERIENCE |
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PUBLIC
BOARD EXPERIENCE |
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KEY INDUSTRY
EXPERIENCE(1) |
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KEY
MARKETS EXPERTISE(2) |
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FINANCIAL
EXPERTISE(3) |
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CAPITAL
MARKETS EXPERTISE |
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ADVANCED
DEGREE PROFESSIONAL ACCREDITATION |
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Victor J. Coleman
Age: 60 Director Since: IPO |
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Mr. Coleman serves as Chief Executive Officer and Chairman of our Board, and has been a member of the Board since our IPO. Prior to the formation of our Company, Mr. Coleman founded and served as a managing partner of our predecessor, Hudson Capital, LLC, a private real estate investment company based in Los Angeles, California. Mr. Coleman is an active community leader, and is on the Founding Board of Directors for the Ziman Center for Real Estate (from 2004 to the present) at the UCLA Anderson School of Management, and also serves on the Boards of the Ronald Reagan UCLA Medical Center, the Fisher Center for Real Estate and Urban Economics, Los Angeles Sports & Entertainment Commission and the Los Angeles Chapter of the World Presidents’ Organization. In 2015, Mr. Coleman was awarded the City of Hope’s 2015 Spirit of Life Award presented by the Los Angeles Real Estate & Construction Industries Council, and the 2019 Real Star of Hollywood Award from the Friends of the Hollywood Central Park. Mr. Coleman’s experience as a director also includes service on the board of other publicly traded real estate investment trusts, or REITs, such as Douglas Emmett, Inc. (from 2006 to 2009) and Kite Realty (since 2012), where he currently serves as a member of its compensation committee. Mr. Coleman is also an investor in the Vegas Golden Knights, a National Hockey League team. He holds a Master of Business Administration degree from Golden Gate University and a Bachelor of Arts in History from the University of California, Berkeley. Mr. Coleman was selected by our Board to serve as a director based on his deep knowledge of our Company and his experience in the real estate investment industry and pursuant to the terms of his employment agreement. He is a member of our Sustainability Committee.
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Theodore R.
Antenucci Age: 57 Director Since: IPO |
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Mr. Antenucci has served as a member of our Board since our IPO. Since March 2011, Mr. Antenucci has served as President and Chief Executive Officer of Catellus Development Corporation, a leading national land developer. Until June 2011, Mr. Antenucci was also President and Chief Investment Officer of Prologis, as well as a member of its Executive Committee. Prologis is a global provider of distribution facilities with over $32 billion in real estate assets under management. He also served on the Board of Directors for Prologis European Properties, a public fund trading on the Euronext stock exchange in Amsterdam, from 2009 through June of 2011. Before joining Prologis in September 2005, Mr. Antenucci served as President of Catellus Commercial Development Corp., and was responsible for all development, construction and acquisition activities. Additionally, Mr. Antenucci has served on the board of trustees of the Children’s Hospital Colorado Foundation since December of 2010. Mr. Antenucci has also served on the board of directors of Iron Mountain, Inc., where he served on its audit committee. He earned a Bachelor of Arts degree in Business Economics from the University of California, Santa Barbara. Mr. Antenucci was selected by our Board based on his experience as an executive and board member of a REIT and his extensive real estate and development expertise in the Southern California market. He is a member of our Audit and Investment Committees.
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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Karen Brodkin
Age: 57 Director Since: January 2021 |
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Ms. Brodkin has served as a member of our Board since January 2021. She currently serves as Executive Vice President of Content Strategy & Development at Endeavor and Co-Head of WME SPORTS, where she has worked since 2014. Previously, Ms. Brodkin worked for Fox Networks Group starting in 1999 where she served as the Executive Vice President of Business and Legal Affairs from 2007 until 2014. In this role she oversaw the business and legal affairs team that negotiated professional and collegiate media rights acquisitions, talent and marketing agreements. Before that, Ms. Brodkin spent five years as an entertainment attorney at two Los Angeles-based entertainment firms, where she represented talent and studio clients. Ms. Brodkin currently serves on the Board of Directors of the U.S. Soccer Foundation. She is the former Chairperson of the Board of Directors of the Los Angeles Sports Council. In April 2015, Ms. Brodkin was honored by Los Angeles Family Housing for her work in helping families transition out of homelessness and poverty, and in June 2015 she joined their board of directors, where she continues to serve. Ms. Brodkin received her Juris Doctor from the University of California, Hastings College of the Law, where she graduated Order of the Coif, and graduated from the University of California, Berkeley, where she earned a Bachelor of Arts degree with dual majors in Political Science and Art History. She was selected by our Board to serve as a director based on her expertise in the entertainment industry and professional relationships. She is a member of our Governance and Sustainability Committees.
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Ebs Burnough
Age: 42 Director Since: March 2022 |
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Mr. Burnough was appointed to serve as a member of our Board in March 2022. He is currently the Managing Director of Hatch House Productions, a production company focusing on film, television and theatre, which he joined in January 2017. Additionally, he serves as the President and founder of Ebs Burnough Solutions International (EBSI) a firm dedicated to providing clients with an interdisciplinary approach to marketing, communications and event production, founded in 2013. Prior to founding EBSI, Mr. Burnough served as Director of Communications for AERIN, a global lifestyle brand founded by cosmetics entrepreneur Aerin Lauder and also served as Deputy White House Social Secretary, where he developed and executed hundreds of events on behalf of President and Mrs. Obama, including the G-20 Global Summit, numerous White House State Dinners, as well as producing “Broadway at the White House,” televised on PBS. He currently serves on the boards of Sundance Institute Board of Trustees, as its Chair, Mrs. Wordsmith and Steppenwolf Theater and as an advisory board member of The Actors Fund. Mr. Burnough received a Bachelor of Science in Communications from Northwestern University. Mr. Burnough was selected by our Board to serve as a director based on his government experience as well as his career in the media and entertainment industry. He is a member of our Compensation Committee.
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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Richard B. Fried
Age: 54 Director Since: IPO |
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Mr. Fried has served as a member of our Board since our IPO. His selection as a member of our Board was made in connection with the negotiation of our formation transactions. Mr. Fried is currently a Managing Member and head of the real estate group at Farallon Capital Management, L.L.C., an investment management company that he has been with since 1995. Mr. Fried also currently serves as a board member of Playa Hotels & Resorts, N.V., a position he has held since 2018. Previously, Mr. Fried was a Vice President in acquisitions for Security Capital Industrial Trust (now called Prologis), a REIT specializing in industrial properties. He has also worked as an associate in capital markets at JMB Institutional Realty Corporation. Mr. Fried graduated from the University of Pennsylvania with a Bachelor of Science degree in Economics and a Bachelor of Arts degree in History. Our Board has determined that Mr. Fried should serve as a director based on his familiarity with our Company since inception and his experience in the real estate investment industry. Mr. Fried serves as Chairperson of our Compensation Committee and is a member of our Investment Committee.
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Jonathan M. Glaser
Age: 59 Director Since: IPO |
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Mr. Glaser has served as a member of our Board since our IPO. Mr. Glaser has been Managing Member of JMG Capital Management LLC since he founded the company in 1992. JMG Capital Management LLC is the General Partner of JMG Capital Partners, L.P., an investment limited partnership that has been a leader in various capital market strategies, private placements and additional financing strategies. Prior to founding JMG, Mr. Glaser was a member floor trader on both the American Stock Exchange and Pacific Stock Exchange. Mr. Glaser received a Juris Doctor degree from the Boalt Hall School of Law at the University of California, Berkeley, as well as a Bachelor of Arts degree from the University of California, Berkeley. Our Board has determined that Mr. Glaser should serve as a director based on his capital markets expertise, as well as his extensive experience in portfolio management, financial oversight and directorship service. Mr. Glaser is a member of our Audit Committee.
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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Robert L. Harris II
Age: 63 Director Since: December 2014 |
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Mr. Harris has served as a member of our Board since December 2014. He most recently served as Chairman of Acacia Research Corporation, where he served as a director since 2000, as President from 2000 to 2012 and as Executive Chairman of the Board from 2012 to 2016. Mr. Harris previously served as President and a director of Entertainment Properties Trust, a publicly traded entertainment, recreation and specialty real estate company which Mr. Harris founded, from 1997 to 2000. From 1993 to 1997, he led the International Division and served as Senior Vice President of AMC Entertainment. Prior to that, Mr. Harris served as President of Carlton Browne and Company, Inc., a holding company and trust with assets in real estate, insurance and financial services. He has also served on the boards of the George L. Graziadio School of Business and Management at Pepperdine University, CombiMatrix Corporation, True Religion Brand Jeans, the USA Volleyball Foundation and Imperial Bancorp. Our Board has determined that Mr. Harris should serve as a director on our Board based on his experience with REITs and as a member of senior management at both publicly traded and privately held companies. Mr. Harris is a member of our Compensation Committee and he serves as our Lead Independent Director.
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Christy Haubegger
Age: 53 Director Since: March 2019 |
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Ms. Haubegger has served as a director since March 2019. She is currently Executive Vice President, Chief Enterprise Inclusion Officer at WarnerMedia, which is owned by AT&T Inc. Previously, she led multicultural business strategy for Creative Artists Agency, or CAA, providing insights on diverse markets to CAA’s motion picture, music, marketing and television clients. Prior to that, Ms. Haubegger worked in the publishing and motion picture industries, having founded and served as publisher, president and CEO at Latina magazine, and served as a producer on several motion pictures. She also previously served on the board of Latina Media Ventures from 2003 to 2018, and currently serves on the boards of the NYSE-listed company RTW Retailwinds, Inc. and Management Leadership for Tomorrow, a non-profit organization that works to increase the number of minority business leaders. Ms. Haubegger is also a founding member of TIME’S UP, an initiative that addresses systematic inequality and injustice in the workplace. She received a Juris Doctor degree from Stanford University and a Bachelor of Arts degree from the University of Texas at Austin. Ms. Haubegger was selected by our Board to serve as a director based on her expertise in the entertainment industry and professional relationships. She also serves as the Chairperson of our Sustainability Committee and is a member of our Governance Committee.
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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Mark D. Linehan
Age: 59 Director Since: IPO |
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Mr. Linehan has served as a member of our Board since our IPO. Mr. Linehan has served as President and Chief Executive Officer of Wynmark Company since he founded the company in 1993. Wynmark Company is a private real estate investment and development company with interests in properties in California, Nevada and Montana. Prior to founding Wynmark Company, Mr. Linehan was a Senior Vice President with the Trammell Crow Company in Los Angeles, California. Before that, Mr. Linehan was with Kenneth Leventhal & Co. (now Ernst & Young LLP), a Los Angeles-based public accounting firm. He currently serves on the board of Cannae Holdings, Inc. and Austerlitz Acquisition Corp I, and II. He previously served on the board of Condor Hospitality Trust, a publicly traded REIT. Mr. Linehan is actively involved with the community through his service as Chairman of Direct Relief and on the board of the National Cowboy and Western Heritage Museum, as well his previous board membership with the UC Santa Barbara Foundation and the Camino Real Park Foundation. Mr. Linehan received a Bachelor of Arts degree in Business Economics from the University of California, Santa Barbara and is a Certified Public Accountant. Mr. Linehan was selected by our Board based on his extensive experience in real estate investment and development as well as his expertise in accounting matters. Mr. Linehan is the Chairperson of our Audit Committee and is a member of our Investment Committee.
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Andrea Wong
Age: 55 Director Since: August 2017 |
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Ms. Wong has served as a member of our Board since August 2017. Ms. Wong also serves on the boards of Liberty Media Corporation, Qurate Retail Group, Oaktree Acquisition II Corporation and Roblox Corporation. She is a Governor of the British Film Institute and a Trustee of the Royal Academy of Arts. Ms. Wong was most recently President, International Production for Sony Pictures Television and President, International for Sony Pictures Entertainment based in London. She oversaw Sony Pictures Television’s 18 overseas production companies, creating nearly 1,300 hours of entertainment around the world each year. Among her many achievements in this role, Ms. Wong brought The Crown to Sony, winner of the Golden Globes for Best Drama Television Series and numerous other accolades. As President, International for Sony Pictures Entertainment, Ms. Wong guided the company on matters impacting international production and championed the studio’s interests abroad. Previously, Ms. Wong served as President and CEO of Lifetime Networks where she oversaw the operations of Lifetime Television, Lifetime Movie Network, Lifetime Real Women, and Lifetime Digital, including programming, marketing, advertising sales, affiliate sales, public affairs, business and legal affairs, strategic planning, operations and research. Prior to that, Ms. Wong was Executive Vice President, Alternative Programming, Specials and Late Night at ABC where she developed shows such as The Bachelor, the U.S. version of Dancing with the Stars and the Emmy-award winning Extreme Makeover: Home Edition. Ms. Wong graduated from MIT with a degree in electrical engineering and received a MBA from Stanford University. She is a Henry Crown Fellow at the Aspen Institute. Ms. Wong was selected by our Board to serve as a director based on her experience in the media and entertainment industry. Ms. Wong is the Chairperson of our Governance Committee.
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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The Board unanimously recommends a vote “FOR” the ratification of
Ernst & Young LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2022. |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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The Board unanimously recommends that you vote “FOR” the advisory approval of the
compensation of our NEOs for the fiscal year ended December 31, 2021, as more fully disclosed in this Proxy Statement. |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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| Annual Cash Retainer(1) | | | | $ | 70,000(2) | | |
| Additional Cash Retainers(1): | | | | | | | |
| Lead Independent Director | | | | $ | 35,000(2) | | |
| Chair of the Audit Committee | | | | $ | 25,000 | | |
| Chair of the Compensation Committee | | | | $ | 15,000 | | |
| Chair of the Governance Committee | | | | $ | 12,500 | | |
| Chair of the Sustainability Committee | | | | $ | 7,500 | | |
| Member of the Audit Committee | | | | $ | 12,500 | | |
| Member of the Compensation Committee | | | | $ | 7,500 | | |
| Member of the Governance Committee | | | | $ | 7,500 | | |
| Member of the Sustainability Committee | | | | $ | 5,000 | | |
| Annual equity award value(3) | | | | $ | 90,000 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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NAME(1)
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FEE PAID IN CASH
($)(2) |
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STOCK
AWARDS ($)(3) |
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TOTAL
($) |
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| Theodore R. Antenucci | | | | | 77,500 | | | | | | 90,000 | | | | | | 167,500 | | |
| Karen Brodkin | | | | | 52,500 | | | | | | 90,000 | | | | | | 142,500 | | |
| Richard B. Fried | | | | | 80,000(4) | | | | | | — | | | | | | 80,000 | | |
| Jonathan M. Glaser | | | | | 77,500(5) | | | | | | 90,000 | | | | | | 167,500 | | |
| Robert L. Harris II | | | | | 93,220(4) | | | | | | 90,000 | | | | | | 183,220 | | |
| Mark D. Linehan | | | | | 90,000(4) | | | | | | 90,000 | | | | | | 180,000 | | |
| Robert M. Moran, Jr.(6) | | | | | 48,146(4) | | | | | | 90,000 | | | | | | 138,146 | | |
| Christy Haubegger | | | | | 68,750 | | | | | | 90,000 | | | | | | 158,750 | | |
| Barry A. Porter(7) | | | | | 86,780(5) | | | | | | 90,000 | | | | | | 176,780 | | |
| Andrea Wong | | | | | 74,327 | | | | | | 90,000 | | | | | | 164,327 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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FISCAL YEAR
ENDED DECEMBER 31, |
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2021
($) |
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2020
($) |
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| Audit Fees | | | | | 1,827 | | | | | | 1,384 | | |
| Audit-related fees | | | | | 654 | | | | | | 50 | | |
| Tax Fees | | | | | 1,736 | | | | | | 1,344 | | |
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Total Fees
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| | | | 4,217 | | | | | | 2,778 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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NAME
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AGE
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POSITION
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| Victor J. Coleman | | |
60
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| | Chief Executive Officer and Chairman of the Board | |
| Mark T. Lammas | | |
55
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| | President and Treasurer | |
| Harout Diramerian | | |
47
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| | Chief Financial Officer | |
| Arthur X. Suazo | | |
57
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| | Executive Vice President, Leasing | |
| Steven Jaffe | | |
60
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| | Executive Vice President, Business Affairs | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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COMPENSATION COMMITTEE
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COMPENSATION CONSULTANT
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HPP MANAGEMENT
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| Exercises independent discretion with respect to executive compensation matters | | | Advises the Committee on competitive benchmarking for pay levels, best practices in plan design, and governance trends | | | CEO provides input on individual performance for other NEOs and results against key non-financial business goals | |
| Administers our equity incentive programs, including reviewing and approving equity grants to our NEOs | | | Assists with peer group selection and analysis | | | Provides additional information as requested by the Committee | |
| Reviews and approves individual targets and actual compensation for the most senior executives | | | Reviews and advises on recommendations, plan design and measures | | | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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EXECUTIVE
|
| |
2021 BASE SALARY
($) |
| |||
| Victor J. Coleman | | | | | 950,000 | | |
| Mark T. Lammas | | | | | 725,000 | | |
| Harout Diramerian | | | | | 450,000 | | |
| Arthur X. Suazo | | | | | 550,000 | | |
| Steven Jaffe | | | | | 500,000 | | |
|
EXECUTIVE
|
| |
THRESHOLD
|
| |
TARGET
|
| |
MAXIMUM
|
| |||||||||
| Victor J. Coleman | | | | | 125% | | | | | | 175% | | | | | | 225% | | |
| Mark T. Lammas | | | | | 90% | | | | | | 130% | | | | | | 170% | | |
| Harout Diramerian | | | | | 80% | | | | | | 115% | | | | | | 150% | | |
| Arthur X. Suazo | | | | | 85% | | | | | | 110% | | | | | | 135% | | |
| Steven Jaffe | | | | | 85% | | | | | | 110% | | | | | | 135% | | |
|
METRIC AND RATIONALE FOR
INCLUSION |
| |
WEIGHTING
|
| |
THRESHOLD
|
| |
TARGET
|
| |
MAXIMUM
|
| |
ACTUAL
|
| |||
|
FFO(1) per Share (as adjusted)
Encourages focus on profitability as measured by the most frequently assessed REIT earnings measure. Target goal is based on the midpoint of our forecasted range |
| | | | 30% | | | |
$1.84
|
| |
$1.88
|
| |
$1.92
|
| |
$1.99
|
|
|
Same-Store Office NOI(2) Growth
Encourages focus on internal growth. Goals are based on overall industry expectations using independent 3rd party estimates from Green Street |
| | | | 20% | | | |
0.0%
|
| |
1.0%
|
| |
2.0%
|
| |
4.9%
|
|
|
Relative Office Portfolio Leased Percentage
Encourages focus on internal and relative growth as compared to the Executive Compensation Peer Group average. No payouts would be earned for performance below the peer group average |
| | | | 15% | | | |
Peer Group
Average |
| |
Peer Group
Average +150 bps |
| |
Peer Group
Average +300 bps |
| |
+401 bps
|
|
|
Other Key Corporate Performance
Factors and Individual Performance Rewards management for the achievement of additional strategic initiatives, including our studio segment results, development/ redevelopment activities, balance sheet management, COVID-19 response, individual performance and other relevant factors |
| | |
|
35%
|
| | |
Compensation Committee’s Assessment
|
| |
See Below
|
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PERFORMANCE FACTOR
|
| |
REVIEW OF 2021 PERFORMANCE
|
|
| Pre-Development and Development Activities | | |
•
NAIOP selected HPP as the 2021 Developer of the Year
•
Unveiled plans for 241,000-square-foot Los Angeles-area studio development with Blackstone
•
Unveiled plans for hybrid mass timber office and retail development at Bentall Centre (Burrard Exchange). Substantial completion of One Westside on budget and schedule
|
|
| Studio Segment Results | | |
•
Same-store studio NOI increased 11.3% on a cash-basis and 12.1% on a GAAP basis
•
Maintained strong same-store studios portfolio trailing 12-month occupancy percentage at 85.7%.
•
Purchased 91-acre London-area studio development site with Blackstone for £120 million
•
Acquired studio transportation and logistics businesses Star Waggons and Zio Studio Services
|
|
|
Balance Sheet
Management |
| |
•
Approximately $1 billion of total liquidity following the preferred stock offering of 16 million shares of 4.750% Series C Cumulative Redeemable Preferred Stock at a price of $25.00 (resulting in net proceeds of $389.5 million)
•
Investment grade credit rated with 68.1% unsecured and 77.3% fixed-rate debt and a weighted average maturity of 4.6 years
•
3.2 billion of the Company’s share of unsecured and secured debt and preferred units (net of cash and cash equivalents) resulting in a leverage ratio of 43.2%
|
|
| ESG Performance Factors | | |
•
Received top honors in the 2021 Global Real Estate Sustainability Benchmark (“GRESB”) Real Estate Assessment for its ESG accomplishments
•
Issued 2020 Corporate Responsibility Report in April, which details the Company’s accomplishments across its Better BlueprintTM focus areas of Sustainability, Health and Equity
|
|
|
EXECUTIVE
|
| |
2021 BONUS
($) |
| |||
| Victor J. Coleman | | | | | 2,062,688 | | |
| Mark T. Lammas | | | | | 1,189,363 | | |
| Harout Diramerian | | | | | 651,375 | | |
| Arthur X. Suazo | | | | | 716,513 | | |
| Steven Jaffe | | | | | 651,375 | | |
|
EXECUTIVE
|
| |
2021 LTIP
UNIT AWARD (#)(1) |
| |
2021 LTIP
UNIT AWARD ($)(2) |
| ||||||
| Victor J. Coleman | | | | | 162,075 | | | | | | 4,000,000 | | |
| Mark T. Lammas | | | | | 70,908 | | | | | | 1,750,000 | | |
| Harout Diramerian | | | | | 25,324 | | | | | | 625,000 | | |
| Arthur X. Suazo | | | | | 25,324 | | | | | | 625,000 | | |
| Steven Jaffe | | | | | 20,259 | | | | | | 500,000 | | |
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FEATURE
|
| |
DESCRIPTION
|
| |
OBJECTIVE
|
|
|
Plan Concept
|
| | Three-year performance award program with Performance Units issued at the onset of the plan which may be earned as follows: (i) 50% of grant date fair value based on relative TSR performance (the “Relative TSR Units”) and (ii) 50% of grant date fair value based on operational metrics, subject to an absolute TSR modifier (the “Operational Units”) | | |||
|
Relative TSR Units
|
| |
•
Three-year measurement period, ending on December 31, 2023
•
Relative TSR Units may be earned between 37.5% and 250% of target based on relative TSR performance equal to -1,000 bps to +1,500 bps as compared to the FTSE NAREIT Equity Office Index
•
Payouts for in-between performance will be calculated using straight-line interpolation
•
No payouts will be earned for relative TSR less than -1,000 bps
|
| |
•
Promotes value creation over a long-term period
•
Rewards executives only if we deliver strong stockholder returns relative to our office peers
|
|
|
Operational Units
|
| |
•
Initial measurement period ending on December 31, 2021 for operational performance with the final measurement period ending on December 31, 2023 for absolute TSR performance
•
Operational Units may be earned between 50% and 250% of target based on Net Debt to Gross Asset Value (30%), Leasing Volume (30%), LEED Certification (10%), Fitwel Certification (10%) and G&A to Gross Asset Value (20%) based on performance as of December 31, 2021, and achievement of absolute TSR goals as of December 31, 2023
•
Operational Units are subject to a reduced payout of up to 40% fewer units if absolute TSR is less than 30% over the three years
•
Payouts for in-between performance will be calculated using straight-line interpolation
|
| |
•
Metrics promote strong operational performance and focus on investor priorities that will contribute to long-term value creation
•
Modifier limits the reward in periods when absolute TSR performance is not strong, including negative returns
|
|
|
Post-Vesting Holding Period
|
| |
•
Requires any Performance Units earned under the plan be subject to a two-year holding period during which time the units may not be transferred
|
| |
•
Ensures the continued alignment with stockholders following the conclusion of the measurement period
|
|
| | | |
2021 PERFORMANCE UNIT AWARD VALUES
|
| |||||||||||||||
|
EXECUTIVE
|
| |
TOTAL TARGET
AWARD ($) |
| |
OPERATIONAL
PERFORMANCE UNIT VALUE AT TARGET ($) |
| |
RELATIVE TSR
PERFORMANCE UNIT VALUE AT TARGET ($) |
| |||||||||
| Victor J. Coleman | | | |
$
|
4,000,000
|
| | | | $ | 2,000,000 | | | | | $ | 2,000,000 | | |
| Mark T. Lammas | | | |
|
1,750,000
|
| | | | | 875,000 | | | | | | 875,000 | | |
| Harout Diramerian | | | |
|
625,000
|
| | | | | 312,500 | | | | | | 312,500 | | |
| Arthur X. Suazo | | | |
|
500,000
|
| | | | | 250,000 | | | | | | 250,000 | | |
| Steven Jaffe | | | |
|
500,000
|
| | | | | 250,000 | | | | | | 250,000 | | |
| | | |
PAYOUT AS A PERCENT OF POTENTIAL UNITS OPERATIONAL UNITS
|
| | | | ||||||
|
PLAN YEAR
|
| |
OPERATIONAL UNITS
WITH ABSOLUTE TSR MODIFIER |
| |
RELATIVE
TSR UNITS |
| |
TOTAL UNITS
|
| |
STATUS
|
|
|
2021 Performance Units
|
| |
57.2%
(including 14% reduction based on absolute TSR performance)(1) |
| |
33.3%
|
| |
47.9%
|
| |
2 Years of performance remaining
|
|
|
PERFORMANCE
CRITERIA |
| |
WEIGHTING
|
| |
THRESHOLD
|
| |
TARGET
|
| |
MAXIMUM
|
| | |
ACTUAL
RESULTS |
| |
PERCENTAGE
EARNED |
|
|
Annual Net Debt to Annual Gross Asset Value
|
| |
30%
|
| |
31%
|
| |
30%
|
| |
29%
|
| | |
31.9%
|
| |
0%
|
|
| Leasing Volume | | |
30%
|
| |
1,137,000 sf
|
| |
1,208,000 sf
|
| |
1,279,000 sf
|
| | |
1,718,274 sf
|
| |
30%
|
|
| LEED Certification | | |
10%
|
| |
81.8%
|
| |
83.5%
|
| |
85.2%
|
| | |
86.8%
|
| |
10%
|
|
| Fitwel Certification | | |
10%
|
| |
28.5%
|
| |
30.0%
|
| |
31.5%
|
| | |
30.5%
|
| |
6.7%
|
|
|
G&A to Consolidated Gross Assets
|
| |
20%
|
| |
0.79%
|
| |
0.74%
|
| |
0.69%
|
| | |
0.64%
|
| |
20%
|
|
|
TOTAL
|
| |
100%
|
| | | | | | | | | | | | | | |
66.7%
|
|
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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PLAN YEAR
|
| |
ABSOLUTE
POOL |
| |
POOL
|
| |
TOTAL POOL
|
| |
TOTAL POOL
AS A PERCENT OF POTENTIAL VALUE |
| |
STATUS
|
|
|
2019 OPP
($28,000,000 Plan Maximum) |
| |
$0
|
| |
$0
|
| |
$0
|
| |
0%
|
| |
Concluded
|
|
|
EXECUTIVE
|
| |
OWNERSHIP
REQUIREMENT AS A MULTIPLE OF BASE SALARY |
| |||
| Victor J. Coleman | | | | | 10x | | |
| NEOs | | | | | 3x | | |
| All other executives | | | | | 1x | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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NAME AND PRINCIPAL
POSITION |
| |
YEAR
|
| |
SALARY
($) |
| |
BONUS
($)(1) |
| |
STOCK
AWARDS ($)(2) |
| |
NON-EQUITY
INCENTIVE PLAN COMPENSATION ($)(3) |
| |
ALL OTHER
COMPENSATION ($)(4) |
| |
TOTAL
($) |
| |||||||||||||||||||||
|
Victor J. Coleman
Chief Executive Officer, President and Chairman of the Board |
| | | | 2021 | | | | | $ | 950,001 | | | | | $ | 336,657 | | | | | $ | 8,431,334 | | | | | $ | 694,688 | | | | | $ | 136,136 | | | | | $ | 10,548,816 | | |
| | | 2020 | | | | | | 950,000 | | | | | | 831,250 | | | | | | 7,598,582 | | | | | | — | | | | | | 107,418 | | | | | | 9,487,250 | | | |||
| | | 2019 | | | | | | 850,000 | | | | | | 382,500 | | | | | | 6,497,825 | | | | | | 1,530,000 | | | | | | 67,417 | | | | | | 9,327,742 | | | |||
|
Mark T. Lammas
President and Treasurer |
| | | | 2021 | | | | | $ | 725,000 | | | | | $ | 194,119 | | | | | $ | 3,682,186 | | | | | $ | 400,563 | | | | | $ | 5,734 | | | | | | 5,007,602 | | |
| | | 2020 | | | | | | 725,000 | | | | | | 471,250 | | | | | | 3,328,165 | | | | | | — | | | | | | 5,712 | | | | | | 4,530,037 | | | |||
| | | 2019 | | | | | | 650,000 | | | | | | 221,000 | | | | | | 2,610,640 | | | | | | 884,000 | | | | | | 5,622 | | | | | | 4,371,262 | | | |||
|
Harout Diramerian
Chief Financial Officer |
| | | | 2021 | | | | | $ | 450,000 | | | | | $ | 159,469 | | | | | $ | 1,194,094 | | | | | $ | 329,063 | | | | | $ | 5,734 | | | | | $ | 2,138,360 | | |
| | | 2020 | | | | | | 415,000 | | | | | | 311,250 | | | | | | 912,190 | | | | | | — | | | | | | 5,712 | | | | | | 1,644,152 | | | |||
|
Arthur X. Suazo
Executive Vice President, Leasing |
| | | | 2021 | | | | | $ | 550,000 | | | | | $ | 140,333 | | | | | $ | 1,171,266 | | | | | $ | 289,575 | | | | | $ | 5,734 | | | | | $ | 2,156,908 | | |
|
Steven Jaffe
Executive Vice President, Business Affairs |
| | | | 2021 | | | | | $ | 500,000 | | | | | $ | 148,838 | | | | | $ | 1,120,402 | | | | | $ | 307,125 | | | | | $ | 5,734 | | | | | $ | 2,082,099 | | |
|
HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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|
|
| | | | | | | | | |
ESTIMATED POSSIBLE PAYOUTS
UNDER NON-EQUITY INCENTIVE PLAN AWARDS(1) |
| |
ESTIMATED FUTURE PAYOUTS
UNDER EQUITY INCENTIVE PLAN AWARDS |
| |
ALL
OTHER STOCK AWARDS: NUMBER OF SHARES OF STOCK |
| |
GRANT
DATE FAIR VALUE OF STOCK AWARDS ($) |
| ||||||||||||||||||||||||||||||||||||
|
NAME
|
| |
GRANT
DATE |
| |
THRESHOLD
($) |
| |
TARGET
($) |
| |
MAXIMUM
($) |
| |
THRESHOLD
(#) |
| |
TARGET
(#) |
| |
MAXIMUM
(#) |
| |||||||||||||||||||||||||||||||||
|
Victor J. Coleman
|
| | | | | | | | | $ | 1,187,500 | | | | | $ | 1,662,500 | | | | | $ | 2,137,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 01/01/2021(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | 55,083 | | | | | | 146,889 | | | | | | 367,223 | | | | | | — | | | | | $ | 3,999,992(3) | | | |||
| | | 12/29/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 162,075 | | | | | | 3,400,009(5) | | | |||
| | | 12/29/2021(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 40,345 | | | | | | 995,715(7) | | | |||
| | | 03/08/2022(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,339 | | | | | | 35,617(8) | | | |||
|
Mark T. Lammas
|
| | | | | | | | | | 652,500 | | | | | | 942,500 | | | | | | 1,232,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 01/01/2021(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,033 | | | | | | 55,755 | | | | | | 146,889 | | | | | | — | | | | | | 1,599,998(3) | | | |||
| | | 12/29/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 70,908 | | | | | | 1,487,508(5) | | | |||
| | | 12/29/2021(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 23,214 | | | | | | 572,922(7) | | | |||
| | | 03/08/2022(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 818 | | | | | | 21,759(8) | | | |||
|
Harout Diramerian
|
| | | | | | | | | | 360,000 | | | | | | 517,500 | | | | | | 675,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 01/01/2021(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,885 | | | | | | 18,361 | | | | | | 45,903 | | | | | | — | | | | | | 500,002(3) | | | |||
| | | 12/29/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | 25,324 | | | | | | 531,247(5) | | | |||
| | | 12/29/2021(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,359 | | | | | | 156,940(7) | | | |||
| | | 03/08/2022(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 222 | | | | | | 5,905(8) | | | |||
|
Arthur X. Suazo
|
| | | | | | | | | | 467,500 | | | | | | 605,000 | | | | | | 742,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 01/01/2021(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,024 | | | | | | 16,065 | | | | | | 40,164 | | | | | | — | | | | | | 500,007(3) | | | |||
| | | 12/29/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 25,324 | | | | | | 531,247(5) | | | |||
| | | 12/29/2021(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,339 | | | | | | 131,767(7) | | | |||
| | | 03/08/2022(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 310 | | | | | | 8,246(8) | | | |||
|
Steven Jaffe
|
| | | | | | | | | | 425,000 | | | | | | 550,000 | | | | | | 675,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | | 01/01/2021(2) | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,024 | | | | | | 16,065 | | | | | | 40,164 | | | | | | — | | | | | | 500,007(3) | | | |||
| | | 12/29/2021(4) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,259 | | | | | | 424,993(5) | | | |||
| | | 12/29/2021(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,690 | | | | | | 189,789(7) | | | |||
| | | 03/08/2022(6) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 211 | | | | | | 5,613(8) | | |
|
HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
|
| |
|
|
|
NAME
|
| |
NUMBER OF
SHARES OF STOCK THAT HAVE NOT VESTED (#) |
| |
MARKET VALUE OF
SHARES OF STOCK THAT HAVE NOT VESTED ($) |
| |
EQUITY INCENTIVE
PLAN AWARDS: NUMBER OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED (#) |
| |
EQUITY INCENTIVE PLAN
AWARDS: MARKET OR PAYOUT VALUE OF UNEARNED SHARES, UNITS OR OTHER RIGHTS THAT HAVE NOT VESTED ($) |
| ||||||||||||
|
Victor J. Coleman
|
| | | | 44,647(1) | | | | | $ | 1,103,227(2) | | | | | | — | | | | | | — | | |
| | | 113,523(3) | | | | | | 2,805,153(2) | | | | | | — | | | | | | — | | | |||
| | | 162,075(4) | | | | | | 4,004,873(2) | | | | | | — | | | | | | — | | | |||
| | | — | | | | | | — | | | | | | 96,668(5) | | | | | $ | 2,388,666(2) | | | |||
| | | — | | | | | | — | | | | | | 367,223(6) | | | | | | 9,074,080(2) | | | |||
|
Mark T. Lammas
|
| | | | 13,841(1) | | | | | $ | 342,011(2) | | | | | | — | | | | | | — | | |
| | | 45,409(3) | | | | | | 1,122,056(2) | | | | | | — | | | | | | — | | | |||
| | | 70,908(4) | | | | | | 1,752,137(2) | | | | | | — | | | | | | — | | | |||
| | | — | | | | | | — | | | | | | 42,809(5) | | | | | $ | 1,057,810(2) | | | |||
| | | — | | | | | | — | | | | | | 146,889(6) | | | | | | 3,629,627(2) | | | |||
|
Harout Diramerian
|
| | | | 4,241(1) | | | | | $ | 104,795(2) | | | | | | — | | | | | | — | | |
| | | 14,191(3) | | | | | | 350,660(2) | | | | | | — | | | | | | — | | | |||
| | | 25,324(4) | | | | | | 625,756(2) | | | | | | — | | | | | | — | | | |||
| | | — | | | | | | — | | | | | | 11,047(5) | | | | | $ | 272,971(2) | | | |||
| | | — | | | | | | — | | | | | | 45,903(6) | | | | | | 1,134,263(2) | | | |||
|
Arthur X. Suazo
|
| | | | 5,581(1) | | | | | $ | 137,907(2) | | | | | | — | | | | | | — | | |
| | | 17,738(3) | | | | | | 438,306(2) | | | | | | — | | | | | | — | | | |||
| | | 25,324(4) | | | | | | 625,756(2) | | | | | | — | | | | | | — | | | |||
| | | — | | | | | | — | | | | | | 9,943(5) | | | | | $ | 245,692(2) | | | |||
| | | — | | | | | | — | | | | | | 40,164(6) | | | | | | 992,452(2) | | | |||
|
Steven Jaffe
|
| | | | 4,465(1) | | | | | $ | 110,330(2) | | | | | | — | | | | | | — | | |
| | | 14,191(3) | | | | | | 350,660(2) | | | | | | — | | | | | | — | | | |||
| | | 20,259(4) | | | | | | 500,600(2) | | | | | | — | | | | | | — | | | |||
| | | — | | | | | | — | | | | | | 9,943(5) | | | | | $ | 245,692(2) | | | |||
| | | — | | | | | | — | | | | | | 40,164(6) | | | | | | 992,452(2) | | |
|
HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
|
| |
|
|
|
NAME
|
| |
NUMBER OF SHARES
ACQUIRED ON VESTING (#) |
| |
VALUE REALIZED ON
VESTING ($)(1) |
| ||||||
| Victor J. Coleman | | | | | 197,221 | | | | | $ | 4,844,463 | | |
| Mark T. Lammas | | | | | 86,790 | | | | | $ | 2,128,828 | | |
| Harout Diramerian | | | | | 25,011 | | | | | $ | 614,020 | | |
| Arthur X. Suazo | | | | | 35,853 | | | | | $ | 881,027 | | |
| Steven Jaffe | | | | | 28,202 | | | | | $ | 692,200 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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NAME
|
| |
BENEFIT
|
| |
DEATH ($)
|
| |
DISABILITY
($) |
| |
TERMINATION
WITHOUT CAUSE OR FOR GOOD REASON (NO CHANGE IN CONTROL)($) |
| |
CHANGE IN
CONTROL (NO TERMINATION) ($)(1) |
| |
TERMINATION
WITHOUT CAUSE OR FOR GOOD REASON IN CONNECTION WITH A CHANGE IN CONTROL($)(1) |
| |||||||||||||||
|
Victor J. Coleman
|
| | Cash Severance(2) | | | | $ | 2,737,500 | | | | | $ | 2,737,500 | | | | | $ | 8,212,500 | | | | | | — | | | | | $ | 8,212,500 | | |
| Continued Health Benefits(3) | | | | | 34,168 | | | | | | 34,168 | | | | | | 102,503 | | | | | | — | | | | | | 102,503 | | | |||
| Equity Acceleration | | | | | 15,187,530(4) | | | | | | 15,187,530(4) | | | | | | 15,187,530(4) | | | | | $ | 7,274,277(5) | | | | | | 15,187,530(4) | | | |||
| Life Insurance(6) | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| Total | | | | | 18,009,198 | | | | | | 17,959,198 | | | | | | 23,502,533 | | | | | | 7,274,277 | | | | | | 23,502,533 | | | |||
|
Mark T. Lammas
|
| | Cash Severance(2) | | | | | — | | | | | | — | | | | | | 3,497,500 | | | | | | — | | | | | | 5,246,250 | | |
| Continued Health Benefits(7) | | | | | — | | | | | | — | | | | | | 51,251 | | | | | | — | | | | | | 51,251 | | | |||
| Equity Acceleration | | | | | 5,176,931(4) | | | | | | 5,176,931(4) | | | | | | 5,176,931(4) | | | | | | 1,960,727(5) | | | | | | 5,176,931(4) | | | |||
| Life Insurance(6) | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| Total | | | | | 5,226,931 | | | | | | 5,176,931 | | | | | | 8,725,682 | | | | | | 1,960,727 | | | | | | 10,474,432 | | | |||
|
Harout Diramerian
|
| | Cash Severance(2) | | | | | — | | | | | | — | | | | | | 847,250 | | | | | | — | | | | | | 2,541,750 | | |
| Continued Health Benefits(7) | | | | | — | | | | | | — | | | | | | 12,171 | | | | | | — | | | | | | 12,171 | | | |||
| Equity Acceleration | | | | | 1,963,255(4) | | | | | | 1,963,255(4) | | | | | | 1,963,255(4) | | | | | | 882,044(5) | | | | | | 1,963,255(4) | | | |||
| Life Insurance(6) | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| Total | | | | | 2,013,255 | | | | | | 1,963,255 | | | | | | 2,822,676 | | | | | | 882,044 | | | | | | 4,517,176 | | | |||
|
Arthur X. Suazo
|
| | Cash Severance(2) | | | | | — | | | | | | — | | | | | | 1,176,250 | | | | | | — | | | | | | 2,352,500 | | |
| Continued Health Benefits(7) | | | | | — | | | | | | — | | | | | | 16,198 | | | | | | — | | | | | | 16,198 | | | |||
| Equity Acceleration | | | | | 1,980,994(4) | | | | | | 1,980,994(4) | | | | | | 1,980,994(4) | | | | | | 430,812(5) | | | | | | 1,980,994(4) | | | |||
| Life Insurance(6) | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| Total | | | | | 2,030,994 | | | | | | 1,980,994 | | | | | | 3,173,442 | | | | | | 430,812 | | | | | | 4,349,692 | | | |||
|
Steven Jaffe
|
| | Cash Severance(2) | | | | | — | | | | | | — | | | | | | 1,095,625 | | | | | | — | | | | | | 2,191,250 | | |
| Continued Health Benefits(7) | | | | | — | | | | | | — | | | | | | 43,433 | | | | | | — | | | | | | 43,433 | | | |||
| Equity Acceleration | | | | | 1,740,615(4) | | | | | | 1,740,615(4) | | | | | | 1,740,615(4) | | | | | | 779,025(5) | | | | | | 1,740,615(4) | | | |||
| Life Insurance(6) | | | | | 50,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | |||
| Total | | | | | 1,790,615 | | | | | | 1,740,615 | | | | | | 2,89,673 | | | | | | 779,025 | | | | | | 3,975,298 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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PLAN CATEGORY
|
| |
NUMBER OF
SECURITIES TO BE ISSUED UPON EXERCISE OF OUTSTANDING OPTIONS, WARRANTS AND RIGHTS |
| |
WEIGHTED
AVERAGE EXERCISE PRICE OF OUTSTANDING OPTIONS |
| |
NUMBER OF
SECURITIES REMAINING AVAILABLE FOR FUTURE ISSUANCE UNDER EQUITY COMPENSATION PLANS(1) |
| |||||||||
| Equity compensation plans approved by stockholders | | | | | 2,864,409(2) | | | | | | — | | | | | | 7,216,460 | | |
| Equity compensation plans not approved by stockholders | | | | | — | | | | | | — | | | | | | — | | |
| Total | | | |
|
2,864,409
|
| | | | | — | | | | | | 7,216,460 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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|
|
NAME OF BENEFICIAL OWNER
|
| |
NUMBER OF SHARES
AND COMMON UNITS BENEFICIALLY OWNED |
| |
PERCENTAGE OF
OUTSTANDING COMMON STOCK(1) |
| |
PERCENTAGE OF
OUTSTANDING COMMON STOCK AND COMMON UNITS(2) |
| |||||||||
| The Vanguard Group(3) | | | | | 22,023,045 | | | | | | 15.23% | | | | | | 15.04% | | |
| BlackRock, Inc.(4) | | | | | 18,406,536 | | | | | | 12.73% | | | | | | 12.57% | | |
| Norges Bank (Central Bank of Norway)(5) | | | | | 9,156,926 | | | | | | 6.33% | | | | | | 6.25% | | |
| Victor J. Coleman | | | | | 1,926,193 | | | | | | 1.33% | | | | | | 1.32% | | |
| Mark T. Lammas | | | | | 529,772 | | | | | | * | | | | | | * | | |
| Jonathan M. Glaser | | | | | 337,775 | | | | | | * | | | | | | * | | |
| Arthur X. Suazo | | | | | 214,212 | | | | | | * | | | | | | * | | |
| Harout Diramerian | | | | | 131,897 | | | | | | * | | | | | | * | | |
| Steven Jaffe | | | | | 124,156 | | | | | | * | | | | | | * | | |
| Theodore R. Antenucci | | | | | 69,053 | | | | | | * | | | | | | * | | |
| Mark D. Linehan | | | | | 52,780 | | | | | | * | | | | | | * | | |
| Robert L. Harris II | | | | | 36,553 | | | | | | * | | | | | | * | | |
| Andrea Wong | | | | | 17,899 | | | | | | * | | | | | | * | | |
| Richard B. Fried | | | | | 14,496 | | | | | | * | | | | | | * | | |
| Christy Haubegger | | | | | 10,626 | | | | | | * | | | | | | * | | |
| Karen Brodkin | | | | | 4,705 | | | | | | * | | | | | | * | | |
| Ebs Burnough | | | | | 589 | | | | | | * | | | | | | * | | |
| All directors and executive officers as a group (33 persons) | | | | | 4,474,939 | | | | | | 3.10% | | | | | | 3.06% | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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| | | |
YEAR ENDED DECEMBER 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Net income | | | | $ | 29,012 | | | | | $ | 16,430 | | |
| Adjustments: | | | | | | | | | | | | | |
|
Depreciation and amortization—Consolidated
|
| | | | 343,614 | | | | | | 299,682 | | |
|
Depreciation and amortization—Non-real estate assets
|
| | | | (7,719) | | | | | | (2,286) | | |
|
Depreciation and amortization—Company’s Share from unconsolidated real estate entities
|
| | | | 6,020 | | | | | | 5,605 | | |
|
Impairment loss
|
| | | | 2,762 | | | | | | — | | |
|
Unrealized (gain) loss on non-real estate investments
|
| | | | (16,571) | | | | | | 2,463 | | |
|
Tax impact of unrealized gain on non-real estate investment
|
| | | | 3,849 | | | | | | — | | |
|
FFO attributable to non-controlling interests
|
| | | | (64,388) | | | | | | (37,644) | | |
|
FFO attributable to preferred units
|
| | | | (2,893) | | | | | | (612) | | |
| FFO to common stockholders and unitholders | | | | | 293,686 | | | | | | 283,638 | | |
| Specified items impacting FFO: | | | | | | | | | | | | | |
|
Transaction-related expenses
|
| | | | 8,911 | | | | | | 440 | | |
|
One-time tax reassessment management cost
|
| | | | — | | | | | | 5,500 | | |
|
One-time straight-line rent reserve
|
| | | | — | | | | | | 2,620 | | |
|
One-time prior period net property tax adjustment
|
| | | | (581) | | | | | | (937) | | |
|
One-time debt extinguishment cost-Company’s share
|
| | | | 3,187 | | | | | | 2,654 | | |
| FFO (excluding specified items) to common stockholders and unitholders | | | | $ | 305,203 | | | | | $ | 293,915 | | |
| Weighted average common stock/units outstanding—diluted | | | | | 153,332 | | | | | | 154,084 | | |
| FFO per common stock/unit—diluted | | | | $ | 1.92 | | | | | $ | 1.84 | | |
| FFO (excluding specified items) per common stock/unit—diluted | | | | $ | 1.99 | | | | | $ | 1.91 | | |
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HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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| | | |
YEAR ENDED DECEMBER 31,
|
| |||||||||
| | | |
2021
|
| |
2020
|
| ||||||
| Net income | | | | $ | 29,012 | | | | | $ | 16,430 | | |
| Adjustments: | | | | | | | | | | | | | |
|
Income from unconsolidated real estate entities
|
| | | | (1,822) | | | | | | (736) | | |
|
Fee income
|
| | | | (3,221) | | | | | | (2,815) | | |
|
Interest expense
|
| | | | 121,939 | | | | | | 113,823 | | |
|
Interest income
|
| | | | (3,794) | | | | | | (4,089) | | |
|
Management services reimbursement income-Unconsolidated joint ventures
|
| | | | (1,132) | | | | | | — | | |
|
Management services expense-unconsolidated joint ventures
|
| | | | 1,132 | | | | | | — | | |
|
Transaction-related expenses
|
| | | | 8,911 | | | | | | 440 | | |
|
Unrealized (gain) loss on non-real estate investments
|
| | | | (16,571) | | | | | | 2,463 | | |
|
Loss on extinguishment of debt
|
| | | | 6,259 | | | | | | 2,654 | | |
|
Impairment loss
|
| | | | 2,762 | | | | | | — | | |
|
Other expense (income)
|
| | | | 2,553 | | | | | | (548) | | |
|
General and administrative
|
| | | | 71,346 | | | | | | 77,882 | | |
|
Depreciation and amortization
|
| | | | 343,614 | | | | | | 299,682 | | |
| NET OPERATING INCOME | | | | $ | 560,988 | | | | | $ | 505,186 | | |
| Non-same-store net operating income | | | | | (100,145) | | | | | | (51,030) | | |
| Same-store net operating income | | | | $ | 460,843 | | | | | $ | 454,156 | | |
|
Cash-basis adjustment
|
| | | | (13,707) | | | | | | (29,582) | | |
| SAME-STORE CASH NET OPERATING INCOME | | | | $ | 447,136 | | | | | $ | 424,574 | | |
| Same-store studio cash net operating income | | | | | (34,077) | | | | | | (30,629) | | |
| SAME-STORE OFFICE CASH NET OPERATING INCOME | | | | $ | 413,059 | | | | | $ | 393,945 | | |
|
HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
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| |
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|
| | | |
THREE MONTHS ENDED
|
| |||||||||||||||||||||||||||
| | | |
12/31/2021
|
| |
9/30/2021
|
| |
6/30/2021
|
| |
3/31/2021
|
| |
12/31/2020
|
| |||||||||||||||
| Net income (loss) | | | | $ | 16,753 | | | | | $ | (6,182) | | | | | $ | 7,030 | | | | | $ | 11,411 | | | | | $ | (3,168) | | |
|
Interest expense—Consolidated
|
| | | | 30,139 | | | | | | 30,825 | | | | | | 30,689 | | | | | | 30,286 | | | | | | 29,638 | | |
|
Interest income—Consolidated
|
| | | | (926) | | | | | | (934) | | | | | | (937) | | | | | | (997) | | | | | | (960) | | |
|
Depreciation and amortization—Consolidated
|
| | | | 88,107 | | | | | | 88,568 | | | | | | 84,178 | | | | | | 82,761 | | | | | | 77,351 | | |
| EBITDA | | | | | 134,073 | | | | | | 112,277 | | | | | | 120,960 | | | | | | 123,461 | | | | | | 102,861 | | |
|
Unconsolidated real estate entities depreciation and
amortization |
| | | | 1,497 | | | | | | 1,462 | | | | | | 1,550 | | | | | | 1,511 | | | | | | 1,424 | | |
|
Unconsolidated real estate entities interest expense
|
| | | | 165 | | | | | | 613 | | | | | | 640 | | | | | | 604 | | | | | | 605 | | |
| EBITDAre | | | | | 135,735 | | | | | | 114,352 | | | | | | 123,150 | | | | | | 125,576 | | | | | | 104,890 | | |
|
Transaction-related expenses
|
| | | | 1,547 | | | | | | 6,300 | | | | | | 1,064 | | | | | | — | | | | | | — | | |
|
Unrealized (gain) loss on non-real estate investments
|
| | | | (4,951) | | | | | | (827) | | | | | | (5,018) | | | | | | (5,775) | | | | | | 128 | | |
|
Loss on debt extinguishment
|
| | | | 10 | | | | | | 6,249 | | | | | | — | | | | | | — | | | | | | — | | |
|
Impairment loss
|
| | | | — | | | | | | 2,762 | | | | | | — | | | | | | — | | | | | | — | | |
|
Other expense (income)
|
| | | | 1,006 | | | | | | (82) | | | | | | 1,177 | | | | | | 452 | | | | | | 1,058 | | |
|
Straight-line rent receivables, net
|
| | | | (5,957) | | | | | | (2,157) | | | | | | (5,657) | | | | | | (6,765) | | | | | | 1,191 | | |
|
Amortization of lease incentive costs
|
| | | | 458 | | | | | | 476 | | | | | | 475 | | | | | | 475 | | | | | | 477 | | |
|
Non-cash amortization of above-market and below-market leases, net
|
| | | | (3,134) | | | | | | (3,023) | | | | | | (2,739) | | | | | | (2,519) | | | | | | (2,178) | | |
|
Non-cash amortization of above-market and below-market ground leases, net
|
| | | | 603 | | | | | | 588 | | | | | | 588 | | | | | | 588 | | | | | | 588 | | |
|
Non-cash compensation expense
|
| | | | 5,445 | | | | | | 5,840 | | | | | | 6,340 | | | | | | 3,538 | | | | | | 8,314 | | |
| Adjusted EBITDAre | | | | | 130,762 | | | | | | 130,478 | | | | | | 119,380 | | | | | | 115,570 | | | | | | 114,468 | | |
|
One-time prior period net property tax adjustment
|
| | | | — | | | | | | (1,433) | | | | | | 369 | | | | | | 1,050 | | | | | | (613) | | |
| Adjusted EBITDAre (excluding specified items) | | | | | 130,762 | | | | | | 129,045 | | | | | | 119,749 | | | | | | 116,620 | | | | | | 113,855 | | |
|
Studio cash NOI
|
| | | | (7,956) | | | | | | (13,121) | | | | | | (7,354) | | | | | | (9,579) | | | | | | (7,441) | | |
| Office property Adjusted EBITDAre | | | | | 122,806 | | | | | | 115,924 | | | | | | 112,395 | | | | | | 107,041 | | | | | | 106,414 | | |
| x Annualization factor | | | | | 4 | | | | | | 4 | | | | | | 4 | | | | | | 4 | | | | | | 4 | | |
| Annualized office property Adjusted EBITDAre | | | | | 491,224 | | | | | | 463,696 | | | | | | 449,580 | | | | | | 428,164 | | | | | | 425,656 | | |
| Trailing 12-mo studio cash NOI | | | | | 37,045 | | | | | | 36,530 | | | | | | 31,161 | | | | | | 29,124 | | | | | | 28,447 | | |
| Cash Adjusted EBITDAre for selected ratios | | | | $ | 528,269 | | | | | $ | 500,226 | | | | | $ | 480,741 | | | | | $ | 457,288 | | | | | $ | 454,103 | | |
| Less: Partners’ share of cash Adjusted EBITDAre | | | | | (94,881) | | | | | | (89,790) | | | | | | (84,721) | | | | | | (76,658) | | | | | | (60,969) | | |
| Company’s Share of cash Adjusted EBITDAre | | | | $ | 433,388 | | | | | $ | 410,436 | | | | | $ | 396,020 | | | | | $ | 380,630 | | | | | $ | 393,134 | | |
| Total Consolidated Unsecured and Secured Debt | | | | | 3,764,874 | | | | | | 3,943,973 | | | | | | 3,518,813 | | | | | | 3,485,093 | | | | | | 3,432,276 | | |
| Less: Consolidated cash and cash equivalents | | | | | (96,555) | | | | | | (110,500) | | | | | | (110,978) | | | | | | (134,278) | | | | | | (113,686) | | |
| Consolidated Debt, Net | | | | $ | 3,668,319 | | | | | $ | 3,833,473 | | | | | $ | 3,407,835 | | | | | $ | 3,350,815 | | | | | $ | 3,318,590 | | |
|
HUDSON PACIFIC PROPERTIES INC.
Proxy Statement | 2022
|
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|
| | | |
THREE MONTHS ENDED
|
| |||||||||||||||||||||||||||
| | | |
12/31/2021
|
| |
9/30/2021
|
| |
6/30/2021
|
| |
3/31/2021
|
| |
12/31/2020
|
| |||||||||||||||
| Less: Partners share of debt, net | | | | | (665,027) | | | | | | (658,313) | | | | | | (554,012) | | | | | | (533,687) | | | | | | (545,683) | | |
|
Company’s Share of Debt, Net (excluding Series A
preferred units) |
| | | $ | 3,003,292 | | | | | $ | 3,175,160 | | | | | $ | 2,853,823 | | | | | $ | 2,817,128 | | | | | $ | 2,772,907 | | |
| Cash Adjusted EBITDAre for selected ratios / Consolidated Debt, Net | | | | | 6.9x | | | | | | 7.7x | | | | | | 7.1x | | | | | | 7.3x | | | | | | 7.3x | | |
| Cash Adjusted EBITDAre for selected ratios / Company’s Share of Debt, Net | | | | | 6.9x | | | | | | 7.7x | | | | | | 7.2x | | | | | | 7.4x | | | | | | 7.1x | | |