Hudson Pacific Properties(US:HPP)2022-11-04 21:18Financial Performance - Total revenues for the three months ended September 30, 2022, were $260,354 thousand, up 14.3% from $227,632 thousand in the same period of 2021[24] - Net loss attributable to common stockholders for the three months ended September 30, 2022, was $(17,286) thousand, compared to a net loss of $(9,295) thousand in the same period of 2021, reflecting an increase in losses of 86.5%[24] - Comprehensive loss attributable to common stockholders for the three months ended September 30, 2022, was $(27,301) thousand, compared to $(11,007) thousand in the same period of 2021, reflecting an increase in comprehensive losses of 147.5%[25] - For the nine months ended September 30, 2022, Hudson Pacific Properties reported a net loss of $10,861,000 compared to a net income of $12,259,000 for the same period in 2021[34] - The company reported a net loss available to common unitholders of $17.51 million for the three months ended September 30, 2022, compared to a loss of $9.38 million in the same period of 2021[41] - Basic earnings per share for the three months ended September 30, 2022, was $(0.12), compared to $(0.06) in 2021[186] Revenue Streams - The company reported total studio revenues of $46,863 thousand for the three months ended September 30, 2022, a significant increase of 82.0% from $25,766 thousand in the same period of 2021[24] - Office rental revenue increased to $208.78 million for the three months ended September 30, 2022, from $197.94 million in the same period of 2021, a rise of 5.9%[41] - Studio service and other revenues surged to $31.56 million for the three months ended September 30, 2022, compared to $12.99 million in the same period of 2021, marking a significant increase of 143.5%[41] - For the three months ended September 30, 2022, ancillary revenues increased to $29.9 million, up 144.5% from $12.2 million in the same period of 2021[79] Expenses and Losses - Operating expenses for the three months ended September 30, 2022, totaled $217,893 thousand, an increase of 14.2% from $190,765 thousand in the same period of 2021[24] - The company incurred total depreciation and amortization expenses of $276,701,000 for the nine months ended September 30, 2022, up from $255,507,000 in 2021[34] - General and administrative expenses for the nine months ended September 30, 2022, were $62.178 million, up from $53.846 million in the same period of 2021[212] - Interest expense for the nine months ended September 30, 2022, was $101.816 million, compared to $91.800 million for the same period in 2021, reflecting a 10.9% increase[212] Assets and Liabilities - Total assets increased to $9,320,419 thousand as of September 30, 2022, compared to $8,990,189 thousand at December 31, 2021, representing a growth of 3.67%[22] - Total liabilities increased to $5.39 billion as of September 30, 2022, from $4.65 billion at December 31, 2021, an increase of 15.9%[39] - Total equity decreased to $3,792,330 thousand as of September 30, 2022, down from $4,196,992 thousand at December 31, 2021, a decline of 9.7%[22] - Cash and cash equivalents rose to $161,667 thousand as of September 30, 2022, compared to $96,555 thousand at December 31, 2021, indicating a significant increase of 67.5%[22] Cash Flow and Investments - Cash provided by operating activities increased to $328,549,000 in 2022 from $285,512,000 in 2021, reflecting a growth of approximately 15%[34] - The company reported total cash used in investing activities of $335,427,000 for the nine months ended September 30, 2022, compared to $560,602,000 in 2021[34] - Proceeds from sales of real estate amounted to $44,537,000 in 2022, with no sales reported in the same period of 2021[34] - The company made property acquisitions totaling $96,443,000 during the nine months ended September 30, 2022[34] Debt and Financing - Unsecured and secured debt increased to $4,449,316 thousand as of September 30, 2022, from $3,733,903 thousand at December 31, 2021, marking a rise of 19.2%[22] - The company completed a public offering of $350 million of 5.95% Senior Notes due in 2028, with net proceeds of approximately $346.5 million used to repay outstanding borrowings[144] - The Company has a total debt of $4.5 billion, with $1.3 billion due in 2026[148] Acquisitions and Goodwill - The total consideration for the Quixote acquisition was $357.9 million, which included $197.9 million in cash and a seller note payable of $160 million[87] - Goodwill recognized from the Quixote acquisition amounted to $151.7 million, reflecting expected synergies and the assembled workforce[88] - The acquisition of Zio and Star Waggons resulted in goodwill of $70.6 million and $30.1 million, respectively, attributed to expected synergies[95] Joint Ventures and Partnerships - As of September 30, 2022, the Company has determined that 13 of its joint ventures met the definition of a variable interest entity (VIE) and are consolidated[64] - The Company accounts for its unconsolidated joint ventures using the equity method, reflecting its net equity investment on the balance sheet[67] - The Company recognized a net loss of $1.636 million from unconsolidated joint ventures for the three months ended September 30, 2022[119] Shareholder Returns - The total dividends paid to common stock and unitholders were $109,388,000 in 2022, slightly down from $115,913,000 in 2021[34] - The Company declared a quarterly dividend of $0.25 per share for common stock and common units for the three months ended September 30, 2022[209] - The Company repurchased common stock worth $37,206,000 in 2022, compared to $14,756,000 in 2021[34] Other Financial Metrics - The Company’s investment in real estate at cost as of September 30, 2022, was $8.7 billion, an increase from $8.4 billion as of December 31, 2021[97] - The Company has maintained compliance with its financial covenants as of September 30, 2022[151] - Future minimum base rents total $3.9 billion as of September 30, 2022, with $161.1 million expected in the remaining 2022[165]