Hudson Pacific Properties (HPP) Q2 2026 Earnings Report

The call conveyed a broadly positive operational and financial trajectory: record leasing, significant occupancy gains, same-store NOI growth, and a near-tripling of core FFO with improved per-share results and strong liquidity. Studio operations and the Quixote restructuring showed measurable progress, and disposition execution is enabling strategic capital redeployment. Offsetting items include near-term revenue composition effects from dispositions, cash rent compression excluding a large government lease, an outstanding CMBS loan in special servicing, lingering Quixote losses (though substantially reduced), and anticipated Q3 headwinds from large expirations and timing of leasing CapEx. Overall, the positives materially outweigh the near-term risks and execution items.

Hudson Pacific raised 2026 full-year core FFO guidance to $1.12–$1.20 per diluted share (from $1.10–$1.18), citing roughly $0.01 of Q2 outperformance and ~$0.01 of improved second-half expectations; Q2 core FFO was $23.1M (vs. $8.0M prior year) or $0.35 per diluted share (up 30% y/y from $0.27), same-store cash NOI was up 7.5% to $90.2M (from $83.9M), total liquidity was $876M (including $81M cash and $795M available on the credit facility), interest expense is ~20% lower y/y (saving ~$9.7M), and adjustments to core FFO related to non‑core Quixote items were $7.5M or $0.11/sh (vs. $19.2M or $0.64/sh prior); the guidance excludes the announced Quixote stage/Atlanta and ancillary closures and any future dispositions/acquisitions, assumes no favorable change from the Hollywood Media loan (interest expense assumptions unchanged), maintains an occupancy midpoint near 81% (management still expects to finish the year in the mid‑80s) and warns of Q3 expiration headwinds with a rebound in Q4.