Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Debt Investor Presentation (December 2024)
20 slides from Hudson Pacific Properties's debt investor presentation, Dec 3, 2024
Slide 1: Hudson Pacific Properties | Fixed Income Investor Update
Hudson Pacific Properties | Fixed Income Investor Update December 2024
Slide 2: Investment Highlights
Investment Highlights Unique Tech & Media Focus Only publicly traded REIT focused on acquiring, transforming, developing, leasing and operating premier real estate and related services demanded by the dynamic and synergistic tech and media industries Powerful Long-Term Leasing Drivers with Green Sho
Slide 3: Portfolio Spans Tech & Media Epicenters
Portfolio Spans Tech & Media Epicenters In-service office and studio portfolio located in established tech and media markets with favorable long-term growth characteristics In-Service Sq Ft YTD HPP’s Share NOI% by Region by Region 15M Sq Ft $257M NOI VANCOUVER (BC) VANCOUVER (BC) 1.5M 3% SEATTLE SEA
Slide 4: Quality, Innovation-Focused Office Tenancy
Quality, Innovation-Focused Office Tenancy Premier office portfolio focused on tech and media markets attracts leading public and established private companies with growth potential 10 Largest Tenants Share of ABR by Public / Private & Age2 HPP’s Share Tenant % ABR 6% 10.3% 5.5% 5.1% 35% 3.8% 59% 3.
Slide 5: West Coast Office Leasing Green Shoots
West Coast Office Leasing Green Shoots HPP’s markets showing signs of stabilizing due to improved gross leasing, tenant demand and sublease availability, coupled with minimal new supply pipelines Positive HPP Market Trends – 3Q24 v. 3Q23 San W. Los San Francisco Silicon Valley Seattle Vancouver Ange
Slide 6: Strong YTD Office Leasing Activity
Strong YTD 24 Office Leasing Activity Signed 1.6 million square feet of leases year-to-date, 25% ahead of this time last year with new leasing comprising 60% of activity HPP YOY Leasing Activity Leasing Pipeline Continues to Grow & Tours Remain Elevated1 YTD 23 1Q24 2Q24 3Q24 YTD 24 Sq Ft 2.0M (in t
Slide 7: Potential to Grow Office Occupancy 2026 & Beyond
Potential to Grow Office Occupancy 2026 & Beyond HPP expects to realize benefits from lower annual expirations starting in 2026 and beyond with the potential to stabilize and ultimately grow occupancy HPP Leasing Activity on Track to Begin to HPP Lease Expirations Expected to Trend Meaningfully Outp
Slide 8: Potential for Studio NOI Growth Post-Strikes
Potential for Studio NOI Growth Post-Strikes After ~18 months of once-in-a-generation strikes and contract negotiations, Los Angeles production levels are recovering, with ~90 shows in production on average in October HPP Does Not Require Peak Production for Studio Business to Create Value Proposed
Slide 9: Selective Development & Diversified Future Pipeline
Selective Development & Diversified Future Pipeline Recently completed and under construction projects require minimal additional spend, while future pipeline consists of office and studio projects to execute on when timing is right Recently Completed / In Lease Up – Studio Recently Completed / In L
Slide 10: Liquidity With No Near-Term Maturities
BALANCE SHEET Liquidity With No Near-Term Maturities HPP has ~$750 million of capital availability and no maturities until year-end 2025, by which time the company expects to execute on refinancings of Class A assets with significant WALT HPP Has No Maturities Until November 20254 $749M Total Capita
Slide 11: Non-Core Asset Sales, Financings to Address Maturities
Non-Core Asset Sales, Financings to Address Maturities Strategically tapping into improved transaction demand as key component of efforts to deleverage with focus on additional non-core asset sales with potential to maximize value From 2022-2023, HPP Sold 9 Office Assets Totaling 1.9M Sq Ft Generati
Slide 12: Debt Covenant Compliance Metrics & Performance
Debt Covenant Compliance Metrics & Performance Unsecured Revolving Credit Facility and Term Loans 3Q24 2Q24 1Q24 Covenant Actual Actual Actual Total Liabilities to total asset value ≤ 65% 48.7% 48.1% 47.1% Unsecured indebtedness to unencumbered asset value ≤ 65% 45.3% 42.6% 40.7% Adjusted EBITDA to
Slide 13: Appendix
Appendix 13
Slide 14: Tech & AI Investment in HPP’s Markets
Tech & AI Investment in HPP’s Markets Target markets contain some of the world’s foremost innovation networks and primary recipients of venture capital and AI investments, which remain strong with potential to grow HPP Markets Historically Capture 2024 U.S. VC Investment Trending ~46% of U.S. VC Inv
Slide 15: Top-Ranked Corporate Responsibility Program
Top-Ranked Corporate Responsibility Program HPP’s corporate responsibility initiatives leverage deep experience across every aspect of office and studio real estate and related services to create value for stakeholders HPPx2030 Vision & Progress Office Americas Sector Key 2030 Goals Progress (as of
Slide 16: Definitions
Definitions Adjusted EBITDAre: Adjusted EBITDAre represents net income (loss) before interest, income taxes, depreciation and amortization, and before our share of interest and depreciation from unconsolidated real estate entities and further adjusted to eliminate the impact of certain non-cash item
Slide 17: Reconciliations
Reconciliations RECONCILIATION OF NET LOSS TO NOI Nine Months Ended 9/30/24 Net loss $ (207,925) Adjustments: Loss from unconsolidated real estate entities 6,443 Fee income (3,933) Interest expense 133,253 Interest income (1,975) Management services reimbursement income—unconsolidated real estate en
Slide 18: Reconciliations (Cont.)
Reconciliations (Cont.) RECONCILIATIONS OF TOTAL ASSETS TO HPP’S SHARE OF UNDEPRECIATED BOOK VALUE AND TOTAL UNSECURED AND SECURED DEBT TO HPP’S SHARE OF DEBT, NET 9/30/24 Total assets $ 8,317,392 Add: Accumulated depreciation 1,885,536 Add: Accumulated amortization 192,653 Less: Partners’ share of
Slide 19: 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 20: HudsonPacificProperties.com
HudsonPacificProperties.com
Hudson Pacific Properties — Debt Investor Presentation (December 2024) on 6ix