Hudson Pacific Properties (HPP)
NYSE:HPP
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Hudson Pacific Properties
(NYSE:HPP)
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Rating:54Neutral
Price Target:
$12.00
▲(59.15% Upside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by weak financial performance (declining revenue, large losses, and high leverage), partially offset by consistently positive operating/free cash flow. Technical indicators are supportive with improving momentum, and the latest earnings call was constructive with raised core FFO guidance and cost/liquidity progress, but valuation remains challenged due to losses and no provided dividend yield.
Positive Factors
Consistent positive free cash flow
Sustained positive operating and free cash flow despite accounting losses indicates the company converts rental receipts to cash. This durable cash generation funds debt service, supports capex and dispositions, and provides breathing room for lease-up cycles and strategic redevelopments over coming quarters.
Negative Factors
Declining revenue and deep net losses
Material top-line erosion and large net losses reflect ongoing demand weakness and mark-to-market pressures in office/studio markets. Persistent negative profitability undermines retained earnings, limits internal capital for reinvestment, and elevates execution risk for redevelopments and lease-up initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive free cash flow
Sustained positive operating and free cash flow despite accounting losses indicates the company converts rental receipts to cash. This durable cash generation funds debt service, supports capex and dispositions, and provides breathing room for lease-up cycles and strategic redevelopments over coming quarters.
Read all positive factors
Hudson Pacific Properties (HPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$735.84M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth-0.88%
EPS Growth47.15%
CountryUS
Employees740
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-10.10
Shares Outstanding54,242,023
10 Day Avg. Volume1,163,696
30 Day Avg. Volume1,332,456
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.16
Price to Sales (P/S)0.58
P/FCF Ratio4.89
Enterprise Value/Market Cap5.77
Enterprise Value/Revenue5.21
Enterprise Value/Gross Profit17.90
Enterprise Value/Ebitda-125.80
Forecast
1Y Price Target
$13.06Price Target Upside73.24% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)-3.34
Revenue Forecast (FY)$728.68M
Hudson Pacific Properties Business Overview & Revenue Model
Company Description
Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 19 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology,...
How the Company Makes Money
HPP primarily makes money by leasing space in its properties and collecting contractual rent from tenants. Its core revenue streams include: (1) Office leasing income: recurring base rent from office tenants under lease agreements, plus recoveries...
Hudson Pacific Properties Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call highlights clear progress: sequential occupancy gains, a larger leasing pipeline, improved core FFO and an upgraded full-year outlook, material G&A reductions, strong liquidity, and targeted disposals to recycle capital. Offsetting items include YoY revenue and same-store NOI declines driven by prior tenant move-outs (notably Uber at 1455 Market), studio revenue softness largely tied to Coyote (now being wound down), elevated recurring CapEx impacting AFFO, and continued weakness in Los Angeles fundamentals. Management presented a credible plan to address underperforming assets (Coyote wind-down, dispositions, redevelopments) and maintained ample liquidity to execute, which leaves the overall tone constructive.Positive Updates
Occupancy and Leasing Momentum
Signed 554,000+ sq ft in Q1; in-service office portfolio occupancy 77.8%, up 150 bps sequentially; lease rate 78.4%, up 140 bps sequentially. Leasing pipeline grew to 2.4M sq ft (up 13% YoY) with 2.2M sq ft of tours (up >30% YoY).
Negative Updates
Revenue and Same-Store NOI Declines
Total revenues fell to $181.9M in Q1 from $198.5M YoY (≈ -8.3%). Same-store cash NOI declined to $85.2M from $92.0M YoY (≈ -7.5%), driven largely by office tenant move-outs including Uber's departure from 1455 Market.
Read all updates
Q1-2026 Updates
Positive
Negative
Occupancy and Leasing Momentum
Signed 554,000+ sq ft in Q1; in-service office portfolio occupancy 77.8%, up 150 bps sequentially; lease rate 78.4%, up 140 bps sequentially. Leasing pipeline grew to 2.4M sq ft (up 13% YoY) with 2.2M sq ft of tours (up >30% YoY).
Read all positive updates
Company Guidance
Management raised full‑year 2026 core FFO guidance to $1.10–$1.18 per diluted share (prior range $0.96–$1.06), driven by ~$0.04 of Q1 outperformance (Super Bowl parking, lower R&M, favorable CAM) and a $0.09 benefit from reclassifying Coyote leased soundstages and Atlanta ops as discontinued operations (Coyote wind‑down targets ~$5.8M of annual cash NOI improvement and to be earnings‑neutral by year‑end); Q1 core FFO was $16.5M or $0.25 per diluted share, G&A fell 32% to $12.6M, interest expense was down 13% (~$5.5M saved), same‑store cash NOI was $85.2M, total liquidity is $933M (cash $138M + $795M undrawn revolver), and the company is targeting $200M of FFO‑accretive dispositions (one sale agreed at 10950 Washington); outlook excludes potential dispositions, acquisitions or capital markets activity and management expects same‑store NOI cadence to improve after a weak Q1 (better in Q2, modestly weaker Q3, stronger Q4).Hudson Pacific Properties Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
34
Negative
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 814.50M | 831.11M | 842.08M | 952.30M | 1.03B | 896.84M |
| Gross Profit | 237.04M | -350.16M | 388.00M | 501.83M | 612.41M | 560.99M |
| EBITDA | -33.73M | -45.39M | 152.05M | 448.36M | 506.60M | 494.56M |
| Net Income | -537.82M | -551.69M | -343.34M | -173.89M | -34.97M | 10.11M |
Balance Sheet | ||||||
| Total Assets | 7.23B | 7.27B | 8.13B | 8.28B | 9.32B | 8.99B |
| Cash, Cash Equivalents and Short-Term Investments | 162.44M | 138.36M | 63.26M | 100.39M | 255.76M | 225.88M |
| Total Debt | 3.76B | 3.76B | 4.62B | 4.40B | 5.05B | 4.22B |
| Total Liabilities | 4.08B | 4.07B | 4.96B | 4.73B | 5.44B | 4.66B |
| Stockholders Equity | 2.92B | 2.97B | 2.86B | 3.08B | 3.31B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | 113.45M | 98.91M | 141.59M | 226.52M | 349.29M | 189.63M |
| Operating Cash Flow | 134.73M | 120.98M | 164.66M | 232.26M | 369.50M | 314.86M |
| Investing Cash Flow | -5.22M | 42.84M | -250.54M | 467.84M | -378.09M | -754.21M |
| Financing Cash Flow | -101.40M | -100.87M | 65.90M | -866.67M | 97.45M | 486.68M |
Hudson Pacific Properties Technical Analysis
Positive
7.54
Price Trends
9.17
Positive
8.35
Positive
12.17
Positive
Market Momentum
1.09
Negative
73.87
Negative
93.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPP, the sentiment is Positive. The current price of 7.54 is below the 20-day moving average (MA) of 11.83, below the 50-day MA of 9.17, and below the 200-day MA of 12.17, indicating a bullish trend. The MACD of 1.09 indicates Negative momentum. The RSI at 73.87 is Negative, neither overbought nor oversold. The STOCH value of 93.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPP.
Hudson Pacific Properties Risk Analysis
Hudson Pacific Properties disclosed 55 risk factors in its most recent earnings report. Hudson Pacific Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hudson Pacific Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $1.09B | 97.62 | 0.85% | 9.58% | 13.93% | -43.58% | |
57 Neutral | $1.06B | -12.88 | -5.70% | 6.09% | -0.50% | -40.17% | |
54 Neutral | $735.84M | -1.67 | -17.20% | ― | -0.88% | 47.15% | |
52 Neutral | $531.39M | -2.70 | -24.69% | 17.55% | -2.12% | 3.11% | |
44 Neutral | $179.49M | -1.17 | -25.72% | 4.14% | 3.10% | -900.13% |
* Real Estate Sector Average
HPP
Hudson Pacific Properties
13.95
-0.96
-6.44%
ELME
Elme Communities
2.05
-0.37
-15.18%
PDM
Piedmont Office
8.92
1.50
20.22%
BDN
Brandywine Realty
3.12
-0.77
-19.81%
DEA
Easterly Government Properties
23.72
3.52
17.41%
Hudson Pacific Properties Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Hudson Pacific Shareholders Reaffirm Board and Governance Direction
Positive
Jun 1, 2026
Hudson Pacific Properties held its Annual Meeting of stockholders on May 28, 2026, where shareholders re-elected seven directors to the board to serve until the 2027 annual meeting, reflecting continued support for the company’s existing lea...
Business Operations and StrategyFinancial Disclosures
Hudson Pacific Raises 2026 Core FFO Outlook on Q1 Strength
Positive
May 7, 2026
On May 7, 2026, Hudson Pacific Properties reported first-quarter 2026 results showing continued operational gains despite lower revenue of $181.9 million versus a year earlier, as office asset sales and tenant move-outs weighed on top line. The co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.