Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Merger or Acquisition (June 2020)
17 slides from Hudson Pacific Properties's merger presentation, Jun 29, 2020
Slide 1: Strategic Joint Venture Transaction Announcement
STRATEGIC JOINT VENTURE TRANSACTION ANNOUNCEMENT JUNE 29, 2020 REIMAGINING NOW. TO CREATE WHAT’S NEXT. This document is not an offer to sell or solicitation of an offer to buy any securities. Any offers to sell or solicitations to buy securities shall be made by means of a prospectus approved for th
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS This presentation, wherein Hudson Pacific Properties, Inc. is referred to as the “Company,” “Hudson Pacific,” “we,” “us,” or “our,” contains forward-looking statements within the meaning of Section 27A of the Secur
Slide 3: New Joint Venture to Expand Studio Platform
New Joint Venture to Expand Studio Platform Hudson Pacific has entered into a new joint venture with Blackstone whereby funds affiliated with Blackstone Property Partners will acquire a 49% interest in Hudson Pacific’s Hollywood Media Portfolio based on a gross valuation of $1.65 billion. Transactio
Slide 4: Transaction Strategic Rationale
Transaction Strategic Rationale + Align with Sophisticated and Well Capitalized Partner to Grow Studio Platform + Complementary industry relationships and expertise provide an advantage in sourcing and executing on future studio-related growth opportunities + Successful past and current partnerships
Slide 5: Transaction Key Terms and Metrics
Transaction Key Terms and Metrics Joint Venture Structure Distributions Pro rata (51% Hudson Pacific / 49% Blackstone) Approximately $7.0 million in estimated annual fees for management, leasing Hudson Pacific Fees and construction, with promote Hudson Pacific Sources and Uses Sources (1) $808.5 mil
Slide 6: Hollywood Media Portfolio Assets
Hollywood Media Portfolio Assets The joint venture’s 2.2 million-square-foot portfolio(1) includes three studio lots on 40-plus acres with 35 stages and five Class A office buildings in Los Angeles—the entertainment capital of the world. Sunset Gower Studios Sunset Bronson Studios Sunset Las Palmas
Slide 7: Hudson Pacific's Vision and Execution
Hudson Pacific’s Vision and Execution Anticipating the content wars, Hudson Pacific assembled and built three premier media campuses, implementing institutional quality operations and attracting leading media companies to the heart of Hollywood. Studio Office 7
Slide 8: Opportunity to Harvest Significant Value
Opportunity to Harvest Significant Value Hudson Pacific has grown the size of its Hollywood Media Portfolio more than 2x and increased related studio and office NOI more than 3.5x since 2010. Hollywood Media Portfolio SF Growth Hollywood Media Portfolio NOI Growth Square Feet NOI (in Thousands) ($ i
Slide 9: Studio Business Resilient Despite COVID-19
Studio Business Resilient Despite COVID-19 New industry-wide operational procedures enhance Hudson Pacific’s ability to provide studio users with a safe and controlled environment despite COVID-19, in turn allowing tenants to keep pace with continuing content demand. Operational Impact Business Impa
Slide 10: Capital Allocation for Development Pipeline
Capital Allocation for Development Pipeline Blackstone will be Hudson Pacific’s development partner at Sunset Gower and Sunset Las Palmas, diversifying funding sources for the construction of the lots’ remaining 1.1 million square feet(1) of excess land density. Potential Additional ~487,000 SF ~618
Slide 11: Market-Leading Platform for External Growth
Market-Leading Platform for External Growth The joint venture will leverage the partners’ respective capital access, relationships and expertise and Hudson Pacific’s existing operating platform to pursue new studio-related acquisitions and developments in target media markets, including Vancouver, N
Slide 12: Transaction Financial Impact
Transaction Financial Impact Estimated FY 2020 FFO Adjustment (without impact of potential financing)(1) $0.04-$0.06 decrease per diluted share Q1 2020 Q1 2020 Q1 2020 Actual Proforma Proforma Without Debt(2)(3) With Debt(2)(4) Financial Covenant Analysis Unsecured Revolving Credit Facility, Term Lo
Slide 13: Definitions
Definitions Adjusted EBITDAre: Adjusted EBITDAre represents net income (loss) before interest, income taxes, depreciation and amortization, and before our share interest and depreciation from the unconsolidated real estate entity and further adjusted to eliminate the impact of certain non-cash items
Slide 14: Definitions (Cont.)
Definitions (Cont.) Funds from Operations (“FFO”): Non-GAAP financial measure we believe is a useful supplemental measure of our performance. We calculate FFO in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. Th
Slide 15: Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized)
Reconciliation of Consolidated Debt, Net to Adjusted EBITDAre (Annualized) Quarter To Date Three Months Ended March 31, 2020 Net income (loss) $ 13,949 Interest income—Consolidated (1,025) Interest expense—Consolidated 26,417 Depreciation and amortization—Consolidated 73,763 EBITDA 113,104 Unconsoli
Slide 16: Reconciliation of Consolidated Debt, Net and Cash and Cash Equivalents
Reconciliation of Consolidated Debt, Net and Cash and Cash Equivalents Total Consolidated unsecured and secured debt as of 31/31/2020 3,260,352 Less paydown of: Line of credit (490,000) Term Loan B (350,000) Term Loan D (125,000) Debt secured by Met Park North (64,500) Revolving Sunset Bronson Studi
Slide 17: Contact
Contact: Laura Campbell SVP, Investor Relations & Marketing (310) 622-1702 lcampbell@hudsonppi.com
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