Hudson Pacific Properties, Inc. (HPP) reported strong Q3 results. Headquartered in Los Angeles, shares of the real estate investment trust (REIT) with a portfolio of office and studio properties have gained 38.5% over the past year.
The company reported Q3 Funds from Operations (FFO) of $0.45 per share. The company reported an FFO of $0.41 per share in the prior-year period.
Positively, total revenues jumped 16% year-over-year to $ $227.6 million. However, the company reported a net loss per share of $0.06 versus a net loss of $0.04 recorded in the prior-year quarter.
During the quarter, the company said that it achieved strong double-digit same-store office and studio cash NOI growth of 11% and 46%, respectively. (See Hudson Pacific Properties stock charts on TipRanks)
Concurrent with the results, the REIT narrowed its 2021 full-year guidance and also provided guidance for the fourth quarter. For FY2021, the company now forecasts FFO in the range of $1.95 to $1.99 per share. For Q4, FFO is expected to be $0.48 to $0.50 per share.
Hudson Pacific Properties CEO Victor Coleman commented, “Hudson Pacific remains very well positioned as we continue to navigate the pandemic and look to a return to office for most of our tenants by year-end or early 2022. Our studio and office tenants continue to pay rent and any deferrals.”
Following the quarterly results, BMO Capital analyst John Kim reiterated a Hold rating on the stock with the price target of $30 (9.7% upside potential).
Overall, the stock has a Hold consensus rating based on 2 Buys, 1 Hold, and 1 Sell. The average Hudson Pacific Properties price target of $31 implies 13.4% upside potential from current levels.