Hudson Pacific Properties, Inc.HPP
Hudson Pacific Properties, Inc. Earnings Per Share Disclosure
Earnings Per Share
Hudson Pacific Properties, Inc.
The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2025, 2024 and 2023, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount.
The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net loss available to common stockholders:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Basic and diluted net loss available to common stockholders | $ | (572,245) | $ | (364,143) | $ | (192,181) | |||||||||||
| Denominator: | |||||||||||||||||
Basic weighted average common shares outstanding(1) | 44,682,601 | 20,170,390 | 20,136,155 | ||||||||||||||
Effect of dilutive instruments(2) | — | — | — | ||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 44,682,601 | 20,170,390 | 20,136,155 | ||||||||||||||
| Basic earnings per common share | $ | (12.81) | $ | (18.05) | $ | (9.54) | |||||||||||
| Diluted earnings per common share | $ | (12.81) | $ | (18.05) | $ | (9.54) | |||||||||||
_____________
1.Basic weighted average common shares outstanding includes common shares issuable upon the exercise of pre-funded warrants in the amount of 5,670,204 for the year ended December 31, 2025. The warrants are exercisable at any time for nominal consideration.
2.The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.
Hudson Pacific Properties, L.P.
The operating partnership calculates basic earnings per unit using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the years ended December 31, 2025, 2024 and 2023, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or conversion would result in a lower earnings per unit amount.
The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net loss available to common unitholders:
| For the Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Basic and diluted net loss available to common unitholders | $ | (582,245) | $ | (373,500) | $ | (195,539) | |||||||||||
| Denominator: | |||||||||||||||||
Basic weighted average common units outstanding(1) | 45,393,969 | 20,684,851 | 20,488,736 | ||||||||||||||
Effect of dilutive instruments(2) | — | — | — | ||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING | 45,393,969 | 20,684,851 | 20,488,736 | ||||||||||||||
| Basic earnings per common unit | $ | (12.83) | $ | (18.06) | $ | (9.54) | |||||||||||
| Diluted earnings per common unit | $ | (12.83) | $ | (18.06) | $ | (9.54) | |||||||||||
_____________
1.Basic weighted average common units outstanding includes common units issuable upon the exercise of pre-funded warrants in the amount of 5,670,204 for the year ended December 31, 2025. The warrants are exercisable at any time for nominal consideration.
2.The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2018 | Feb 16, 2018 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.