Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Nareit REITWorld Conference 2023
18 slides from Hudson Pacific Properties's conference presentation, November 2023
Slide 1: HPP Studios Presentation
HPP Studios Presentation Nareit REITWorld Conference November 2023
Slide 2: Differentiated Tech & Media Focused REIT
Differentiated Tech & Media Focused REIT Uniquely focused on building, owning and operating premier real estate and related services required by the dynamic and synergistic technology, media and other creative industries Tech & Media Epicenters Office & Studio Assets Vertically Integrated Team West
Slide 3: Tech & Media Convergence Drives Demand for HPP Assets
Tech & Media Convergence Drives Demand for HPP Assets Poised to maximize revenue derived from real estate and related services needs–AI, AR / VR1 represent just the next evolution in this convergence and likely avenues for growth Computing + Communication + Content = Demand 1990s Advent of the Inter
Slide 4: Strike Resolution Paves Way for Production to Resume
Strike Resolution Paves Way for Production to Resume Pent-up demand, while it will take time to materialize, is real and HPP’s platform is immediately ready—streamlined operations during the strike while preserving full capabilities unlike many competitors Opportunity to Realize Full Potential of HP
Slide 5: Original Content Production to Remain Key Demand Driver
Original Content Production to Remain Key Demand Driver Anticipate accelerated original content spend in 2024 due to pent-up production demand followed by a more normalized level, with modest growth thereafter Historical U.S. Implied Original & Licensed Content Spend ($ in B)1 14% $116 CAGR $108 $10
Slide 6: Evolving Industry Expands Addressable Market
Evolving Industry Expands Addressable Market Ability to capture incremental revenue from related dynamic creative industries, such as the growing markets for commercials, UGC and live events through Quixote 16% Short-Form $37B Content U.S. Streaming CAGR $21B Comprised Only Commercials Ad Spending ~
Slide 7: Studio Platform Meets End-to-End Production Needs
Studio Platform Meets End-to-End Production Needs First-of-its-kind, fully integrated global studio platform poised to holistically meet content producers’ needs 1 Platform - 2 Brands Owned 51/49% HPP/BX Owned 100% HPP Owned Purpose-Built Stages Leased Conversion Stages + Production Services FACILIT
Slide 8: Client Offering Highly Differentiated in the Marketplace
Client Offering Highly Differentiated in the Marketplace Strategically positioning studio business to become a first-choice provider of scale for all facets of original content production—to date, this vision has only been fully realized in California HPP v. Global Diversified Stage & Production Ser
Slide 9: Near-Term Opportunity #1: Cross-Sell Stages & Services
Near-Term Opportunity #1: Cross-Sell Stages & Services With initial integration of legacy businesses complete, leverage stages to cross-sell core infrastructure services to maximize capture of dollars spent on every on-lot production Set + Tie services to stages or leverage “first VFX Constr- uction
Slide 10: Near-Term Opportunity #2: Grow Customer Base & Loyalty
Near-Term Opportunity #2: Grow Customer Base & Loyalty Utilize portfolio that prioritizes asset quality, sustainability and technology innovation in addition to client experience as a key differentiator Quality Creating an Exceptional Prime Locations Client Experience Purpose Built Convenience High-
Slide 11: Established Key Global Media Markets Presence
Established Key Global Media Markets Presence Combined Sunset Studios and Quixote lines of business now operate in key media markets throughout the U.S. with further embedded growth opportunities NEW YORK 6 Stages, 232K Sq Ft Lighting & Grip, Production Supplies, LONDON Vehicles Future Development:
Slide 12: Future Opportunity: Stage-Led, "Hub & Spoke" Expansion
Future Opportunity: Stage-Led, “Hub & Spoke” Expansion Leverage stage-led vertically integrated platform to grow in “hub” production markets, while expanding services in “spoke” markets Hub Market Spoke Market Top Productions & Spend Decent Production & Spend Existing Infrastructure Attractive Tax C
Slide 13: Scale Provides Multiple Levers to Create Value
Scale Provides Multiple Levers to Create Value Poised to achieve approximately $15 million of annual savings through integration of legacy businesses with in-place opportunities to further optimize and drive value through scale apart from external growth 2023 2024 2025+ Timing TBD Phase 1 – Integr
Slide 14: Disclaimer
Disclaimer Hudson Pacific Properties, Inc. is referred to herein as the “Company,” “Hudson Pacific,” “HPP,” “we,” “us,” or “our.” This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Slide 15: Definitions
Definitions Estimated Square Feet: Represents management’s estimate of leasable square footage, which may be less or more than the Building Owners and Managers Association (BOMA) rentable area. Square footage may change over time due to re-measurement or re-leasing. For future development properties
Slide 16: Reconciliations
Reconciliations RECONCILIATION OF NET LOSS TO STUDIO CASH NOI Year Ended 12/31/22 Net loss $ (16,517) Adjustments: Income from unconsolidated real estate entities (943) Fee income (7,972) Interest expense 149,901 Interest income (2,340) Management services reimbursement income—unconsolidated real es
Slide 17: Reconciliations
Reconciliations STUDIO SAME-STORE CASH NOI Year Ended 12/31/22 Net loss $ (16,517) Adjustments: Income from unconsolidated real estate entities (943) Fee income (7,972) Interest expense 149,901 Interest income (2,340) Management services reimbursement income - unconsolidated joint ventures (4,163) M
Slide 18: HudsonPacificProperties.com
HudsonPacificProperties.com
Hudson Pacific Properties — Nareit REITWorld Conference 2023 on 6ix