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Hudson Pacific Properties
(NYSE:HPP)
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Rating:51Neutral
Price Target:
$13.50
▼(-12.22% Downside)
Action:Reiterated
Date:08/11/26
The score is held down primarily by weak financial performance (shrinking revenue, large reported losses, and elevated leverage despite positive but weakening cash flow) and soft near-term technical momentum. These are partially offset by a stronger-than-expected earnings update with improved leasing/occupancy trends and higher core FFO guidance, while valuation remains difficult to support due to negative earnings and no dividend yield data.
Positive Factors
Leasing Momentum & Anchor Lease
A 24-year, 891k-sq-ft anchor plus 1.3M sq ft signed rebalances rollover risk and materially raises revenue visibility. Durable long-term tenancy improves cash flow stability, underpins re-leasing economics in key Bay Area assets and supports multi-quarter NOI and occupancy recovery.
Negative Factors
Sustained Revenue Contraction
Multi-year revenue decline erodes scale and weakens the firm's ability to absorb fixed costs and fund maintenance/development. Persistent top-line shrinkage undermines long-run NOI growth, compresses margins, and limits the company's capacity to rebuild earnings without durable leasing and rent-step improvements.
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Positive Factors
Negative Factors
Leasing Momentum & Anchor Lease
A 24-year, 891k-sq-ft anchor plus 1.3M sq ft signed rebalances rollover risk and materially raises revenue visibility. Durable long-term tenancy improves cash flow stability, underpins re-leasing economics in key Bay Area assets and supports multi-quarter NOI and occupancy recovery.
Read all positive factors
Hudson Pacific Properties (HPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$740.63M
Dividend YieldN/A
Average Volume (3M)1.33M
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth2.54%
EPS Growth54.94%
CountryUS
Employees607
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-8.85
Shares Outstanding54,268,740
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$15.25Price Target Upside-0.85% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)-2.93
Revenue Forecast (FY)$732.89M
Hudson Pacific Properties Business Overview & Revenue Model
Company Description
Hudson Pacific Properties, Inc. (HPP) functions as a Real Estate Investment Trust, overseeing a significant collection of office and studio properties. Its extensive holdings encompass nearly 19 million square feet, a figure that also accounts for...
How the Company Makes Money
HPP primarily makes money by leasing space in its real estate portfolio and collecting contractual rent from tenants. Its core revenue stream is rental revenue from office properties (typically via multi-year leases with periodic escalations and r...
Hudson Pacific Properties Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Leasing Activity
Signed 1.3 million square feet of office leases in the quarter (61% new, 39% renewals), anchored by an 891,000 sq ft, 24-year lease with the City & County of San Francisco at 1455 Market, and reloaded leasing pipeline to 2.4 million sq ft (≈70% new; average requirement >20,000 sq ft).
Negative Updates
Revenue Slightly Lower YoY
Total revenues were $188.3 million vs. $190.0 million year-ago, primarily due to asset dispositions (e.g., sale of Element L.A.), partially offset by improved occupancy.
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Q2-2026 Updates
Positive
Negative
Record Leasing Activity
Signed 1.3 million square feet of office leases in the quarter (61% new, 39% renewals), anchored by an 891,000 sq ft, 24-year lease with the City & County of San Francisco at 1455 Market, and reloaded leasing pipeline to 2.4 million sq ft (≈70% new; average requirement >20,000 sq ft).
Read all positive updates
Company Guidance
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.Hudson Pacific Properties Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
42
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 812.79M | 831.11M | 842.08M | 952.30M | 1.03B | 896.84M |
| Gross Profit | 239.71M | -350.16M | 388.00M | 501.83M | 612.41M | 560.99M |
| EBITDA | -73.00M | -45.39M | 152.05M | 448.36M | 506.60M | 494.56M |
| Net Income | -557.12M | -551.69M | -343.34M | -173.89M | -34.97M | 10.11M |
Balance Sheet | ||||||
| Total Assets | 7.17B | 7.27B | 8.13B | 8.28B | 9.32B | 8.99B |
| Cash, Cash Equivalents and Short-Term Investments | 80.76M | 138.36M | 63.26M | 100.39M | 255.76M | 225.88M |
| Total Debt | 3.74B | 3.76B | 4.62B | 4.40B | 5.05B | 4.22B |
| Total Liabilities | 4.18B | 4.07B | 4.96B | 4.73B | 5.44B | 4.66B |
| Stockholders Equity | 2.81B | 2.97B | 2.86B | 3.08B | 3.31B | 3.74B |
Cash Flow | ||||||
| Free Cash Flow | 112.25M | 98.91M | 141.59M | 226.52M | 349.29M | 189.63M |
| Operating Cash Flow | 128.77M | 120.98M | 164.66M | 232.26M | 369.50M | 314.86M |
| Investing Cash Flow | -23.28M | 42.84M | -250.54M | 467.84M | -378.09M | -754.21M |
| Financing Cash Flow | -267.20M | -100.87M | 65.90M | -866.67M | 97.45M | 486.68M |
Hudson Pacific Properties Technical Analysis
Positive
15.38
Price Trends
14.76
Negative
11.73
Positive
11.16
Positive
Market Momentum
-0.23
Positive
49.57
Neutral
35.72
Neutral
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 15.38 is above the 20-day moving average (MA) of 14.45, above the 50-day MA of 14.76, and above the 200-day MA of 11.16, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 49.57 is Neutral, neither overbought nor oversold. The STOCH value of 35.72 is Neutral, 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% | |
61 Neutral | $1.14B | 118.33 | 0.77% | 7.14% | 13.04% | -47.32% | |
60 Neutral | $1.17B | -14.64 | -5.39% | ― | 0.70% | -17.55% | |
52 Neutral | $542.79M | -3.83 | -18.69% | 10.09% | 0.51% | 56.07% | |
51 Neutral | $740.63M | -1.62 | -18.64% | ― | 2.54% | 54.94% | |
44 Neutral | $143.95M | -0.93 | -40.59% | 7.41% | 3.10% | -900.13% |
* Real Estate Sector Average
HPP
Hudson Pacific Properties
14.31
-4.03
-21.97%
ELME
Elme Communities
1.62
-0.90
-35.77%
PDM
Piedmont Office
9.50
1.69
21.64%
BDN
Brandywine Realty
3.14
-0.54
-14.63%
DEA
Easterly Government Properties
24.60
3.96
19.17%
Hudson Pacific Properties Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Hudson Pacific boosts occupancy and raises 2026 guidance
Positive
Aug 5, 2026
Hudson Pacific Properties reported second-quarter 2026 results on August 5, 2026, highlighting a 470-basis-point rise in in-service office occupancy to 82.5% and the execution of 1.3 million square feet of office leases, anchored by a 24-year, 891...
Business Operations and StrategyExecutive/Board Changes
Hudson Pacific Announces COO Resignation Amid Leadership Transition
Negative
Jun 22, 2026
On June 18, 2026, Hudson Pacific Properties said Chief Operating Officer Andrew Wattula resigned, ending a tenure that began in 2017 and included his promotion to COO in 2021. The company emphasized that Wattula’s departure was unrelated to ...
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...
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.