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Hudson Pacific Properties, Inc. (the “Company”) (NYSE: HPP) today announced fourth quarter and year-end financial results for the period ended December 31, 2011.
Funds From Operations (FFO) (excluding specified items) for the three months ended December 31, 2011 totaled $9.1 million, or $0.25 per diluted share, compared to FFO (excluding specified items) of $5.1 million, or $0.21 per share, a year ago. The expenses associated with the acquisition of operating properties during the fourth quarter of 2011 were $0.9 million, or $0.03 per diluted share, compared to $1.6 million, or $0.06 per share, a year ago. FFO including the specified items totaled $8.2 million, or $0.23 per diluted share, for the three months ended December 31, 2011, compared to $4.6 million or $0.19 per share, a year ago.
The Company reported a net loss attributable to common shareholders of $3.2 million, or $(0.10) per diluted share, for the three months ended December 31, 2011, compared to net loss attributable to common shareholders of $1.2 million, or $(0.05) per diluted share, for the three months ended December 31, 2010.
“We made solid progress in all areas of our strategy during the fourth quarter,” said Mr. Victor J. Coleman, Chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. “We completed the acquisition of the 205,000 square-foot 6922 Hollywood Boulevard property, increasing our already sizable presence in the highly competitive Hollywood submarket, which is benefiting from strong media, entertainment and technology tenancy. We also completed new and renewal leases totaling 104,849 square feet to improve the leased rate of our office portfolio to 91.0%.”
Fourth Quarter Highlights
FFO (excluding specified items) of $9.1 million, or $0.25 per diluted share, up from $5.1 million, or $0.21 per share (excluding specified items), a year ago;
Completed new and renewal leases totaling 104,849 square feet, including 64,047 square feet of new leases at 1455 Market Street in San Francisco;
Completed acquisition of 6922 Hollywood Boulevard in Hollywood;
Declared and paid quarterly dividend of $0.125 per common share; and
Declared and paid dividend of $0.52344 per share on 8.375% Series B Cumulative Preferred Stock.
Combined Operating Results For The Three Months Ended December 31, 2011
Total revenue during the quarter increased 75.7% to $37.1 million from $21.1 million for the same quarter a year ago. The increase in total revenue was primarily attributable to an $11.5 million increase in rental revenue to $26.4 million, a $4.3 million increase in tenant recoveries to $6.3 million, which was partially offset by a decrease of $0.9 million in other property-related revenue to $2.5 million. The increase in rental revenue and tenant recoveries from a year ago was largely the result of rental revenue from office properties acquired during the fourth quarter of 2010 and third and fourth quarters of 2011. The decrease in other property-related revenue was the result of slower production activity at the Company’s Sunset Gower property associated with lower occupancy at that property compared to the same quarter a year ago.