Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Citi Global Property CEO Conference 2024
19 slides from Hudson Pacific Properties's conference presentation, Mar 4, 2024
Slide 1: Citi Global Property CEO Conference
Citi Global Property CEO Conference March 4, 2024
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 tech, media and other creative industries 19M Sq Ft Portfolio London (U.K.) Value creation opportunities in west 1.2M Sq Ft Fut
Slide 3: High-Quality, Innovation Focused Tenancy
High-Quality, Innovation Focused Tenancy HPP’s premier portfolio and focus on tech and media epicenters attracts a tenant base of leading public and established private companies with the potential for growth in their respective markets HPP’s 10 Largest Tenants HPP’s Share of ABR by Public2 / Privat
Slide 4: Potential Tenant Demand Remains Encouraging
Potential Tenant Demand Remains Encouraging HPP’s current leasing pipeline remains near record levels with number of tours continuing to trend upward to levels not seen since pre-pandemic, even as new deals take time to execute HPP’s 1.9M Sq Ft Current Leasing Pipeline1 # & Aggregate Sq Ft of Tours
Slide 5: Studios in High-Demand / Supply-Constrained Markets
Studios in High-Demand / Supply-Constrained Markets ~90% of HPP’s studio portfolio is located in Hollywood or greater Los Angeles, where pre-strike, long-term average sound stage occupancy was 94%1 Los Angeles Remains Location of Choice HPP’s In-Process Developments Well Positioned for Scripted Cont
Slide 6: Selective Development & Diversified Future Pipeline
Selective Development & Diversified Future Pipeline HPP’s under construction projects require minimal additional spend—future pipeline consists of studio, residential and office opportunities to execute on when timing is right Under Construction – Studio Under Construction – Studio Under Constructio
Slide 7: Substantial Cash Flow Growth Potential
Substantial Cash Flow Growth Potential HPP has an opportunity to create value through significant embedded growth assuming near-term acceleration in film/TV production and mid-to-longer-term improvement in office fundamentals $260M Potential Cash NOI Growth1 4Q23 Annualized HPP’s Share Cash NOI $367
Slide 8: Focus on Fortifying the Balance Sheet
Focus on Fortifying the Balance Sheet HPP continues to proactively strengthen its balance sheet—in 2023 this included executing on over $1 billion of opportunistic asset sales Current Liquidity HPP Has No Debt Maturities Until November 20254 Cash on Hand $100.4M Series B Notes: 1918 Eighth: Element
Slide 9: Potential Path to Improved Leverage Metrics
Potential Path to Improved Leverage Metrics Execution on in-process developments and leasing, supported by assumed improvements in studio and office market fundamentals, provides a potential path to strengthen key leverage metrics HPP’s Share Net Debt / HPP’s Share Cash Adj. EBITDAre Estimated Follo
Slide 10: Already an ESG Leader: HPPx2030 Vision
Already an ESG Leader: HPPx2030 Vision HPP has set additional ambitious targets to further reduce climate impact, grow its portfolio of green products and services, and diversify management ESG Accolades HPPx2030 Vision + 100% carbon neutral and renewable electricity in operations for 10 years GRESB
Slide 11: Appendix
APPENDIX 11
Slide 12: Definitions
Definitions Annualized Base Rent (“ABR”): For office properties, calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of December 31, 2023 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of December
Slide 13: Definitions (Cont.)
Definitions (Cont.) HPP’s Share of Debt: Similar to consolidated debt except it includes HPP’s share of unconsolidated joint venture debt and excludes partners’ share of consolidated joint venture partner debt. In-Service Properties: Owned properties, excluding repositioning, under construction, fut
Slide 14: Reconciliations
Reconciliations RECONCILIATION OF NET LOSS TO HPP'S SHARE OF CASH NOI Three Months Ended 12/31/23 Net loss $ (88,654) Adjustments: Loss from unconsolidated real estate entities 1,683 Fee income (1,155) Interest expense 52,379 Interest income (775) Management services reimbursement income—unconsolida
Slide 15: Reconciliations (Cont.)
Reconciliations (Cont.) STUDIO SAME-STORE CASH NOI Year Ended 12/31/22 Net loss $ (16,517) Adjustments: Income from unconsolidated real estate entites (943) Fee Income (7,972) Interest expense 149,901 Interest income (2,340) Management services reimbursement income - unconsolidated real estate entit
Slide 16: 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 12/31/23 Total assets $ 8,282,050 Add: Accumulated depreciation 1,766,220 Add: Accumulated amortization 201,207 Less: Partners’ share of
Slide 17: Reconciliations (Cont.)
Reconciliations (Cont.) RECONCILIATIONS OF NET LOSS TO ADJUSTED EBITDARE (ANNUALIZED) AND TOTAL UNSECURED AND SECURED DEBT TO CONSOLIDATED DEBT, NET AND HPP’S SHARE OF DEBT, NET Three Months Ended 12/31/23 Net loss $ (88,654) Interest income—consolidated (775) Interest expense—consolidated 52,379 De
Slide 18: 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 19: HudsonPacificProperties.com
HudsonPacificProperties.com
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