Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Debt Investor Presentation (May 2024)
24 slides from Hudson Pacific Properties's debt investor presentation, May 30, 2024
Slide 1: Hudson Pacific Properties | Fixed Income Investor Update
Hudson Pacific Properties | Fixed Income Investor Update May 2024
Slide 2: Differentiated Tech & Media Focused REIT
HPP AT-A-GLANCE Differentiated Tech & Media Focused REIT Uniquely focused on building, owning and operating premier real estate and related services demanded by the dynamic and synergistic tech, media and other creative industries Portfolio spans Only publicly traded Full-service Proactive balance M
Slide 3: Portfolio Spans Tech & Media Epicenters
HPP AT-A-GLANCE Portfolio Spans Tech & Media Epicenters HPP’s in-service portfolio spans West Coast tech and media markets with under construction and future development projects providing for expansion into New York and London HPP’s In-Service Sq Ft YTD HPP’s Share NOI% HPP’s Under Construction & F
Slide 4: Office Portfolio
OFFICE PORTFOLIO HPP is at the forefront of reimagining outdated real estate to deliver marquee workplaces in innovation epicenters where forward-thinking companies and their employees can thrive 45 Properties 14.1M SEATTLE VANCOUVER 1.5M Sq Ft Sq Ft 3% HPP’s Share NOI 2.2M Sq Ft 0.5M Sq Ft Future D
Slide 5: High-Quality, Innovation-Focused Tenancy
OFFICE High-Quality, Innovation-Focused Tenancy HPP’s premier office portfolio and focus on tech and media epicenters attracts 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 Public/ Private & A
Slide 6: Potential Tenant Demand Remains Elevated
OFFICE Potential Tenant Demand Remains Elevated 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 1.8M Sq Ft Current Leasing Pipeline1 # & Aggregate Sq Ft of To
Slide 7: Studio Portfolio
STUDIO PORTFOLIO HPP has created a first-of-its-kind, fully integrated global studio platform to holistically meet content creators’ facilities and services needs and capture a greater share of addressable market 62 LONDON 21 Stages, 1.2M Sq Ft Future Development Stages (Stages + Services Expansion)
Slide 8: Focus on Primary TV / Film Production Markets
STUDIO Focus on Primary TV / Film Production Markets HPP’s Sunset Studios and Quixote lines of business operate in key global media “hubs” while leveraging “spoke” markets as low-capital intensive entry points Hub Market Spoke Market Top Productions & Spend Decent Production & Spend Existing Infrast
Slide 9: Content Production Resuming Post-Strike
STUDIO Content Production Resuming Post-Strike HPP’s studio assets and related operating businesses stands to benefit from a normalization in content production following the resolution of historic dual-union strikes at the end of last year WGA SAG-AFTRA Opportunity to Realize Full Agreement Agreeme
Slide 10: Select Development & Diversified Future Pipeline
DEVELOPMENT Select Development & Diversified Future Pipeline HPP’s under construction projects require minimal additional spend, while future pipeline consists of studio, residential and office opportunities to execute on when timing is right Under Construction – Studio Under Construction – Studio U
Slide 11: Substantial Cash Flow Growth Potential
NOI GROWTH Substantial Cash Flow Growth Potential HPP has an opportunity to create value through embedded growth assuming near- to mid-term acceleration in film / TV production and mid-to-longer-term improvement in office fundamentals $236M Potential Cash NOI Growth1 $370M 1Q24 Annualized HPP’s Shar
Slide 12: Liquidity With No Near-Term Maturities
BALANCE SHEET Liquidity With No Near-Term Maturities HPP has ~$770 million of liquidity and no maturities until year-end 2025, by which time the company expects to execute on the refinancings of Class A assets with significant WALT Current Liquidity HPP Has No Maturities Until November 20254 Cash on
Slide 13: Debt Covenant Compliance
BALANCE SHEET Debt Covenant Compliance Unsecured Revolving Credit Facility 1Q24 4Q23 3Q23 Covenant Actual Actual Actual Total Liabilities to total asset value ≤ 65% 47.1% 45.1% 49.0% Unsecured indebtedness to unencumbered asset value ≤ 65% 40.7% 41.8% 57.7% Adjusted EBITDA to fixed charges ≥ 1.5x 1.
Slide 14: Already a Sustainability & ESG Leader
SUSTAINABILITY SUSTAINABILITY Already a Sustainability & ESG Leader GRESB NAREIT Carbon Neutral Newsweek Sector Leader Leader in the Light Award Operations Listed on America’s Most for Office Americas, Office Sector, 2022-2023 Hudson Pacific Achieved Responsible Companies, 2021-2023 Best New Entry,
Slide 15: Appendix
APPENDIX
Slide 16: Definitions
SUSTAINABILITY APPENDIX 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
Slide 17: Definitions (Cont.)
SUSTAINABILITY APPENDIX 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,
Slide 18: Reconciliations
SUSTAINABILITY APPENDIX Reconciliations RECONCILIATION OF NET LOSS TO STUDIO CASH NOI AND HPP'S SHARE OF STUDIO CASH NOI Year Ended 12/31/22 Year Ended 12/31/23 Net loss $ (16,517) $ (170,700) Adjustments: (Income) loss from unconsolidated real estate entities (943) 3,902 Fee income (7,972) (6,181)
Slide 19: Reconciliations (Cont.)
SUSTAINABILITY APPENDIX Reconciliations (Cont.) 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 - unconso
Slide 20: Reconciliations (Cont.)
SUSTAINABILITY APPENDIX Reconciliations (Cont.) RECONCILIATION OF NET LOSS TO HPP'S SHARE OF CASH NOI Three Months Ended 3/31/24 Net loss $ (53,355) Adjustments: Loss from unconsolidated real estate entities 743 Fee income (1,125) Interest expense 44,089 Interest income (854) Management services rei
Slide 21: Reconciliations (Cont.)
SUSTAINABILITY APPENDIX 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 3/31/24 Total assets $ 8,251,462 Add: Accumulated depreciation 1,778,850 Add: Accumulated amortization 187,681 L
Slide 22: Reconciliations (Cont.)
SUSTAINABILITY APPENDIX 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 3/31/24 Net loss $ (53,355) Interest income—consolidated (854) Interest expense
Slide 23: Disclaimer
SUSTAINABILITY APPENDIX 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
Slide 24: HudsonPacificProperties.com
HudsonPacificProperties.com
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