v3.25.1
Equity
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Equity Equity
The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive loss (“AOCI”):
Derivative Instruments
Currency Translation Adjustments
Total Accumulated Other Comprehensive Loss
BALANCE AT DECEMBER 31, 2024
$2,785 $(11,202)$(8,417)
Unrealized (loss) gain recognized in AOCI(907)3,306 2,399 
Reclassification from AOCI into income(1)
(1,056)— (1,056)
Net change in AOCI(1,963)3,306 1,343 
BALANCE AT MARCH 31, 2025
$822 $(7,896)$(7,074)
__________________ 
1.The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statement of Operations.

The table below presents the activity related to Hudson Pacific Properties, L.P.’s AOCI:
Derivative Instruments
Currency Translation Adjustments
Total Accumulated Other Comprehensive Loss
BALANCE AT DECEMBER 31, 2024
$2,889 $(11,602)$(8,713)
Unrealized (loss) gain recognized in AOCI(972)3,539 2,567 
Reclassification from AOCI into income(1)
(1,130)— (1,130)
Net change in AOCI(2,102)3,539 1,437 
BALANCE AT MARCH 31, 2025
$787 $(8,063)$(7,276)
__________________ 
1.The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statement of Operations.

Non-controlling Interests

Common Units in the Operating Partnership

Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such common units on a one-for-one basis.

Performance Units in the Operating Partnership

Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one-for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one-for-one basis.
Ownership Interest in the Operating Partnership

The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of:
March 31, 2025December 31, 2024
Company-owned common units in the operating partnership
141,392,410 141,279,102 
Company’s ownership interest percentage
96.5 %97.4 %
Non-controlling common units in the operating partnership(1)
5,072,881 3,796,346 
Non-controlling ownership interest percentage
3.5 %2.6 %
_________________ 
1.Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of March 31, 2025, this amount represents both common units and performance units of 550,969 and 4,521,912, respectively. As of December 31, 2024, this amount represents both common units and performance units in the amount of 550,969 and 3,245,377, respectively.

Common Stock Activity

The Company did not complete any common stock offerings during the three months ended March 31, 2025.

The Company’s ATM program permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during the three months ended March 31, 2025. A cumulative total of $65.8 million has been sold as of March 31, 2025.

Share Repurchase Program

The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million under the share repurchase program. The Company did not utilize the share repurchase program during the three months ended March 31, 2025. Since commencement of the program, a cumulative total of $214.7 million had been repurchased. Share repurchases are accounted for on the trade date. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors.

Series C Cumulative Redeemable Preferred Stock

Series C cumulative redeemable preferred stock relates to the 17,000,000 shares of our Series C preferred stock, $0.01 par value per share. Holders of Series C preferred stock, when and as authorized by the Board, are entitled to cumulative cash dividends at the rate of 4.750% per annum of the $25.00 per share, equivalent to $1.1875 per annum per share. Dividends are payable quarterly in arrears on or about the last day of December, March, June and September of each year. In addition to other preferential rights, the holders of Series C preferred stock are entitled to receive the liquidation preference, which is $25.00 per share, before the holders of common stock in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company’s affairs. Generally, shares of Series C preferred stock are not redeemable by the Company prior to November 16, 2026. However, upon the occurrence of a change of control, holders of the Series C preferred stock will have the right to convert into a specified number of shares of common stock, unless the Company has elected to redeem the Series C preferred stock.
Dividends

The Board has historically declared dividends on a quarterly basis and the Company has paid the dividends during the quarters in which the dividends were declared. Declaration of any future dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and the risks affecting the Company’s business. The following table summarizes dividends per share declared and paid for the periods presented:
Three Months Ended March 31,
20252024
Common stock(1)
$— $0.05 
Common units and vested performance units(1)
$— $0.05 
Series A preferred units$0.3906 $0.3906 
Series C preferred stock$0.296875 $0.296875 
Unvested performance units(2)
$— $0.005 
Payment dateMarch 31, 2025March 28, 2024
Record dateMarch 21, 2025March 18, 2024
_________________ 
1.The Company did not pay a quarterly common stock dividend during the first quarter of 2025. As a result, no quarterly common unit and performance unit dividends were paid.
2.Performance units are entitled to dividends equal to the common stock dividends declared by the Company. During their vesting period, unvested performance units receive 10% of declared dividends, with the remainder payable as soon as practicable after the vesting date. During the three months ended March 31, 2025, the Company paid $0.4 million of accrued dividends related to the performance units that vested on December 31, 2024.

Taxability of Dividends

Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation.