Hudson Pacific Properties Reports First Quarter 2026 Financial Results

5/7/26 9:00:00 AM ET

$HPP

Real Estate

Finance

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– Executed Over 550,000 Square Feet of Office Leases, Third Consecutive Quarter of Occupancy Gains –

– Hollywood Stages 97% Leased, Sunset Pier 94 Stages Reached 100% Leased by Quarter End –

– G&A Improved 32% Year-Over-Year, Reflecting Continued Cost Discipline –

– $933 Million of Total Liquidity –

– Raises Full-Year 2026 FFO Outlook –

____________

Hudson Pacific Properties, Inc. (NYSE:HPP) (the "Company," "Hudson Pacific," or "HPP") today announced financial and operating results for the first quarter 2026.

Victor Coleman, Hudson Pacific's CEO and Chairman, commented, "Our first quarter results reflect the meaningful progress we're making to position Hudson Pacific for long-term value creation. We delivered our third consecutive quarter of occupancy gains, executing over 550,000 square feet of office leases, while our Hollywood studio stages reached 97% leased and Sunset Pier 94 achieved 100% leased within its first quarter of operations. We also continued to strengthen our financial foundation, improving G&A by 32% year-over-year, maintaining total liquidity in excess of $930 million, and growing Core FFO sequentially on a per share basis.

"West Coast office fundamentals are improving, and we're well positioned to capture that recovery. AI-driven demand is translating into record leasing activity, and we're making the deliberate decisions necessary to sharpen our focus on our highest-performing assets and lines of business. Our strong first quarter, continued leasing momentum, and the further streamlining of Quixote have led us to raise our outlook, reinforcing our path to FFO growth through the balance of the year."

Financial Results Compared to First Quarter 2025

Total revenue of $181.9 million compared to $198.5 million, primarily due to the Element LA office disposition and office tenant move outs, combined with stable studio production activity
General and administrative expenses improved to $12.6 million compared to $18.5 million, driven by cost savings initiatives
Net loss of $53.1 million, or $0.82 per diluted share, compared to $74.7 million, or $3.70 per diluted share, driven by cost reductions, lower non-real estate depreciation, and prior-year impairment charges, partially offset by prior-year gains on asset sales
Core FFO of $16.5 million, or $0.25 per diluted share, compared to $12.9 million, or $0.61 per diluted share
- Adjustments to FFO in the first quarter totaled $1.5 million, or $0.02 per diluted share, compared to $9.8 million, or $0.47 per diluted share
FFO of $18.0 million, or $0.27 per diluted share, up from $3.1 million, or $0.15 per diluted share
AFFO of $(11.1) million, or $(0.17) per diluted share, compared to $1.7 million, or $0.08 per diluted share, primarily due to lower non-cash adjustments and higher recurring capital expenditures, partially offset by Core FFO improvements
Same-store cash NOI of $85.2 million, compared to $92.0 million, driven by lower office revenues from tenant move outs, partially offset by higher studio revenue due to additional production activity

Office Leasing

Maintained strong leasing momentum, executing 85 leases totaling 554,021 square feet (49% new / 51% renewal), including the following notable leases, each with significant term:
- 59,000-square-foot renewal with Weil, Gotshal & Manges at Towers at Shore Center in Redwood Shores
- 56,000-square-foot renewal and expansion with Mirum Pharmaceuticals at Metro Center in Foster City
- 46,000-square-foot renewal with Dell EMC at 505 First in Seattle's Pioneer Square
- 29,000-square-foot new lease with Axiado Corporation at Concourse in North San Jose
GAAP rents on new leases signed increased 1.8% compared to prior levels, while cash rents decreased 2.4%
In-service office portfolio occupancy improved for the third consecutive quarter to 77.8% (up from 76.3% in the prior quarter) and leased rate rose to 78.4% (up from 77.0% in the prior quarter)

Studio Leasing

In-service studio stages were 72.8% leased on a trailing three-month basis (compared to 74.5% in the prior quarter) and 72.5% on a trailing 12-month basis (up from 69.1% in the prior quarter)
- Excluding the Sunset Pier 94 development in Manhattan, where stages leased from 0% to 100% during the quarter, in-service studio stages would have been 78.2% leased (up 370 basis points from the prior quarter) on a trailing three-month basis
- Hollywood in-service studio stages (Sunset Gower, Sunset Bronson and Sunset Las Palmas) were 97.0% leased (up 280 basis points from the prior quarter) on a trailing three-month basis

Balance Sheet as of March 31, 2026

Total liquidity of $933.3 million consisting of $138.0 million in unrestricted cash and cash equivalents and $795.3 million of availability under the unsecured revolving credit facility
Net debt to undepreciated book value of 31.9% (HPP's share), with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9% and no debt maturities until third quarter 2026

Dividend

The Board of Directors declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock

2026 Outlook

Hudson Pacific is increasing its full-year 2026 Core FFO outlook to $1.10 to $1.18 per diluted share, from the prior range of $0.96 to $1.06. This revised range reflects two key drivers. First, approximately $0.04 of outperformance in first quarter compared to initial expectations. Second, a $0.09 benefit from reclassification of Quixote's leased sound stages and Atlanta-area operations as discontinued operations beginning in second quarter 2026. Note this benefit is based upon expectations for the discontinued operations included in the Company's previous full-year outlook.

This outlook reflects management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements. It otherwise excludes any impact from new acquisitions, dispositions, debt financings, amendments or repayments, recapitalizations, capital markets activity or similar matters. There can be no assurance that actual results will not differ materially from these estimates.

The table below reflects key assumptions for this outlook:

Unaudited, in thousands
	Full-Year 2026
	Assumptions
Metric	Low	High
Average in-service office occupancy	80.0%	82.0%
Growth in same-store property cash NOI⁽¹⁾⁽²⁾	(1.75)%	(0.75)%
GAAP non-cash revenue⁽³⁾	$11,500	$16,500
GAAP non-cash expense⁽⁴⁾	$(6,000)	$(8,000)
General and administrative expenses⁽⁵⁾	$(49,500)	$(55,500)
Interest expense⁽⁶⁾	$(150,000)	$(160,000)
Non-real estate depreciation and amortization	$(12,000)	$(14,000)
FFO from unconsolidated joint ventures	$500	$2,500
FFO attributable to non-controlling interests	$(22,000)	$(26,000)
FFO attributable to preferred units/shares	$(20,000)	$(20,000)
Weighted average common stock/units outstanding—diluted⁽⁷⁾	65,000	66,000

(1)		Same-store defined as consolidated 37 office properties and three studio properties owned and stabilized as of January 1, 2025, and anticipated to be owned and stabilized through December 31, 2026.
(2)		See non-GAAP information below for cash NOI definition.
(3)		Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.
(4)		Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.
(5)		Includes estimated $8.0 million of non-cash compensation expense.
(6)		Includes estimated $6.5 million of non-cash interest expense.
(7)		Diluted shares represent Company ownership through shares of common stock, OP Units and other convertible or exchangeable instruments. Weighted average fully diluted common stock/units outstanding for 2026 includes estimated dilution of stock grants to executives under long-term incentive programs. This estimate is based on award potential as of the end of the most recently completed quarter, calculated in accordance with ASC 260, Earnings Per Share.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding Hudson Pacific's first quarter 2026 results may be found on the Investors section of the Company's website at HudsonPacificProperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will hold a conference call to discuss first quarter 2026 financial results at 9:00 a.m. PT / 12:00 p.m. ET on May 7, 2026. The conference call will be available via live audio webcast on the Investors section of the Company's website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE:HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

(FINANCIAL TABLES FOLLOW)

Consolidated Balance Sheets In thousands, except share data
	3/31/26			12/31/25
	(Unaudited)
ASSETS
Investment in real estate, at cost	$	7,831,517		$	7,793,299
Accumulated depreciation and amortization		(2,021,078	)		(1,953,048	)
Investment in real estate, net		5,810,439			5,840,251
Non-real estate property, plant and equipment, net		73,026			72,397
Cash and cash equivalents		138,008			138,358
Restricted cash		24,432			23,770
Accounts receivable, net		14,121			14,923
Straight-line rent receivables, net		200,387			195,425
Deferred leasing costs and intangible assets, net		307,900			307,390
Operating lease right-of-use assets		327,921			333,258
Prepaid expenses and other assets, net		77,135			86,607
Investment in unconsolidated real estate entities		248,178			246,835
Goodwill		8,754			8,754
TOTAL ASSETS	$	7,230,301		$	7,267,968

LIABILITIES AND EQUITY
Liabilities
Unsecured and secured debt, net	$	3,350,125		$	3,351,458
Joint venture partner debt		66,136			66,136
Accounts payable, accrued liabilities and other		229,078			209,382
Operating lease liabilities		339,815			343,886
Intangible liabilities, net		16,768			17,772
Security deposits, prepaid rent and other		81,078			74,369
Total liabilities		4,083,000			4,063,003

Redeemable preferred units of the operating partnership		2,795			2,795
Redeemable non-controlling interest in consolidated real estate entities		49,880			50,581

Equity
HPP stockholders' equity:
4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized; 17,000,000 shares outstanding at 3/31/26 and 12/31/25		425,000			425,000
Common stock, $0.01 par value, 103,200,000 authorized, 54,242,024 and 54,227,096 shares outstanding at 3/31/26 and 12/31/25, respectively.		529			529
Additional paid-in capital		2,495,302			2,548,488
Accumulated other comprehensive loss		(3,619	)		(1,860	)
Total HPP stockholders' equity		2,917,212			2,972,157
Non-controlling interest—members in consolidated real estate entities		64,903			67,869
Non-controlling interest—units in the operating partnership		112,511			111,563
Total equity		3,094,626			3,151,589
TOTAL LIABILITIES AND EQUITY	$	7,230,301		$	7,267,968

Consolidated Statements of Operations Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
REVENUES
Office
Rental revenues	$	145,228		$	158,393
Service and other revenues		3,446			6,818
Total office revenues		148,674			165,211
Studio
Rental revenues		13,797			13,652
Service and other revenues		19,381			19,596
Total studio revenues		33,178			33,248
Total revenues		181,852			198,459
OPERATING EXPENSES
Office operating expenses		69,822			72,277
Studio operating expenses		31,709			40,981
General and administrative		12,575			18,483
Depreciation and amortization		80,722			93,085
Total operating expenses		194,828			224,826
OTHER (EXPENSES) INCOME
Loss from unconsolidated real estate entities		(437	)		(1,254	)
Fee income		1,107			1,359
Interest expense		(37,994	)		(43,505	)
Interest income		1,649			435
Management services reimbursement income—unconsolidated real estate entities		1,124			975
Management services expense—unconsolidated real estate entities		(1,124	)		(975	)
Transaction-related expenses		(101	)		—
Unrealized loss on non-real estate investments		(1,962	)		(449	)
Gain on sale of real estate, net		—			10,023
Impairment loss		—			(18,476	)
Loss on extinguishment of debt		—			(1,858	)
Other income		158			8
Total other expenses		(37,580	)		(53,717	)
Loss before income tax provision		(50,556	)		(80,084	)
Income tax provision		(348	)		(194	)
Net loss		(50,904	)		(80,278	)
Net income attributable to Series A preferred units		(44	)		(146	)
Net income attributable to Series C preferred shares		(5,047	)		(5,047	)
Net loss attributable to non-controlling interest in consolidated real estate entities		1,610			7,467
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities		701			902
Net loss attributable to common units in the operating partnership		553			2,394
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(53,131	)	$	(74,708	)

BASIC AND DILUTED PER SHARE AMOUNTS
Net loss attributable to common stockholders—basic	$	(0.82	)	$	(3.70	)
Net loss attributable to common stockholders—diluted	$	(0.82	)	$	(3.70	)
Weighted average shares of common stock outstanding—basic		64,462			20,198
Weighted average shares of common stock outstanding—diluted		64,462			20,198

Funds from Operations⁽¹⁾ Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS ("FFO")⁽¹⁾:
Net loss	$	(50,904	)	$	(80,278	)
Adjustments:
Depreciation and amortization—consolidated		80,722			93,085
Depreciation and amortization—non-real estate assets		(3,441	)		(9,649	)
Depreciation and amortization—HPP's share from unconsolidated real estate entities⁽²⁾		1,476			1,045
Gain on sale of real estate, net		—			(10,023	)
Impairment loss—real estate assets		—			18,476
Unrealized loss on non-real estate investments		1,962			449
FFO attributable to non-controlling interests		(6,714	)		(4,854	)
FFO attributable to preferred shares and units		(5,091	)		(5,193	)
FFO to common stock/unit holders		18,010			3,058
Adjustments:
Transaction-related expenses		101			—
Refundable payroll tax credit interest income		(543	)		—
Prior year property tax refund		(538	)		—
Loan swap non-cash reevaluation		(488	)		682
Quixote non-compete termination		—			1,402
Quixote lease termination		—			5,865
Element LA debt early extinguishment loss		—			1,858
Core FFO to common stock/unit holders	$	16,542		$	12,865

Weighted average common stock/units outstanding—diluted		65,564			21,013
FFO per common stock/unit—diluted	$	0.27		$	0.15
Core FFO per common stock/unit—diluted	$	0.25		$	0.61

(1)		We calculate Funds from Operations ("FFO") in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus the HPP's share of real estate-related depreciation and amortization, excluding amortization of deferred financing costs and depreciation of non-real estate assets. The calculation of FFO includes the HPP's share of amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets.

		FFO is a non-GAAP financial measure we believe is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

		Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.

		However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

(2)		HPP's share is a Non-GAAP financial measure calculated as the measure on a consolidated basis, in accordance with GAAP, plus our Operating Partnership's share of the measure from our unconsolidated joint ventures (calculated based upon the Operating Partnership's percentage ownership interest), minus our partners' share of the measure from our consolidated joint ventures (calculated based upon the partners' percentage ownership interests). We believe that presenting HPP's share of these measures provides useful information to investors regarding the Company's financial condition and/or results of operations because we have several significant joint ventures, and in some cases, we exercise significant influence over, but do not control, the joint venture. In such instances, GAAP requires us to account for the joint venture entity using the equity method of accounting, which we do not consolidate for financial reporting purposes. In other cases, GAAP requires us to consolidate the venture even though our partner(s) own(s) a significant percentage interest.

Adjusted Funds from Operations⁽¹⁾ Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
Core FFO	$	16,542		$	12,865
Adjustments:
GAAP non-cash revenue⁽²⁾		(3,178	)		(671	)
GAAP non-cash expense⁽³⁾		1,885			1,704
Non-real estate depreciation and amortization		3,441			8,247
Non-cash interest expense		1,911			4,109
Share/unit-based compensation expense		1,912			5,115
Recurring capital expenditures, tenant improvements and lease commissions		(33,582	)		(29,658	)
AFFO	$	(11,069	)	$	1,711

Weighted average common stock/units outstanding—diluted		65,564			21,013
AFFO per common stock/unit—diluted	$	(0.17	)	$	0.08

(1)		Adjusted Funds from Operations ("AFFO") is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to Core FFO HPP's share of non-cash compensation expense and amortization of deferred financing costs, and subtracting recurring capital expenditures related to HPP's share of tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of HPP's share of straight-line rents, amortization of lease buy-out costs, amortization of above- and below-market lease intangible assets and liabilities, amortization of above- and below-market ground lease intangible assets and liabilities and amortization of loan discounts/premiums. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.
(2)		Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.
(3)		Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.

Net Operating Income⁽¹⁾ Unaudited, in thousands
	Three Months Ended
	3/31/26			3/31/25
RECONCILIATION OF NET LOSS TO NET OPERATING INCOME ("NOI") AND SAME-STORE CASH NET OPERATING INCOME ("NOI")
Net loss	$	(50,904	)	$	(80,278	)
Adjustments:
Loss from unconsolidated real estate entities		437			1,254
Fee income		(1,107	)		(1,359	)
Interest expense		37,994			43,505
Interest income		(1,649	)		(435	)
Management services reimbursement income—unconsolidated real estate entities		(1,124	)		(975	)
Management services expense—unconsolidated real estate entities		1,124			975
Transaction-related expenses		101			—
Unrealized loss on non-real estate investments		1,962			449
Gain on sale of real estate, net		—			(10,023	)
Impairment loss		—			18,476
Loss on extinguishment of debt		—			1,858
Other income		(158	)		(8	)
Income tax provision		348			194
General and administrative		12,575			18,483
Depreciation and amortization		80,722			93,085
NOI	$	80,321		$	85,201

NOI BREAKDOWN
Same-store office cash revenues		145,017			152,522
Straight-line rent		5,400			892
Amortization of above/below-market leases, net		1,004			865
Amortization of lease incentive costs		(2,803	)		(657	)
Same-store office revenues		148,618			153,622
Same-store studios cash revenues		20,045			17,204
Straight-line rent		(427	)		(196	)
Amortization of above-market and below-market leases, net		—			—
Amortization of lease incentive costs		(9	)		(9	)
Same-store studio revenues		19,609			16,999
Same-store revenues		168,227			170,621

Same-store office cash expenses		67,698			66,763
Straight-line rent		367			372
Share/unit-based compensation expense		—			11
Amortization of above/below-market ground leases, net		641			641
Same-store office expenses		68,706			67,787
Same-store studio cash expenses		12,129			10,963
Share/unit-based compensation expense		47			31
Same-store studio expenses		12,176			10,994
Same-store expenses		80,882			78,781


Same-store NOI		87,345			91,840
Non-same-store NOI		(7,024	)		(6,639	)
NOI	$	80,321		$	85,201

(1)

We evaluate performance based upon property Net Operating Income ("NOI") from continuing operations. NOI is not a measure of operating results or cash flows from operating activities or cash flows as measured by GAAP and should not be considered an alternative to income from continuing operations, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from income from continuing operations. We calculate NOI as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, transaction-related expenses and other non-operating items. We define NOI as operating revenues (rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507973038/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Vice President, Communications

(310) 622-1781

lmurray@hudsonppi.com

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Recent Analyst Ratings for

$HPP

Date	Price Target	Rating	Analyst
1/9/2026	$11.00	Outperform → Market Perform	BMO Capital Markets
10/1/2025	$3.50	Overweight	Cantor Fitzgerald
6/16/2025	$5.00	Buy	Odeon
3/28/2025	$4.00 → $5.00	Market Perform → Outperform	BMO Capital Markets
3/17/2025	$2.70	Hold	Jefferies
3/10/2025	$4.00	Equal Weight → Overweight	Wells Fargo
11/12/2024	$5.50 → $5.00	Buy → Hold	Jefferies
8/14/2024		Outperform → Peer Perform	Wolfe Research

More analyst ratings

Hudson Pacific Properties Reports First Quarter 2026 Financial Results

5/7/26 9:00:00 AM ET

$HPP

Real Estate

Finance

Get the next $HPP alert in real time by email

– Executed Over 550,000 Square Feet of Office Leases, Third Consecutive Quarter of Occupancy Gains –

– Hollywood Stages 97% Leased, Sunset Pier 94 Stages Reached 100% Leased by Quarter End –

– G&A Improved 32% Year-Over-Year, Reflecting Continued Cost Discipline –

– $933 Million of Total Liquidity –

– Raises Full-Year 2026 FFO Outlook –

____________

Hudson Pacific Properties, Inc. (NYSE:HPP) (the "Company," "Hudson Pacific," or "HPP") today announced financial and operating results for the first quarter 2026.

Financial Results Compared to First Quarter 2025

Total revenue of $181.9 million compared to $198.5 million, primarily due to the Element LA office disposition and office tenant move outs, combined with stable studio production activity
General and administrative expenses improved to $12.6 million compared to $18.5 million, driven by cost savings initiatives
Net loss of $53.1 million, or $0.82 per diluted share, compared to $74.7 million, or $3.70 per diluted share, driven by cost reductions, lower non-real estate depreciation, and prior-year impairment charges, partially offset by prior-year gains on asset sales
Core FFO of $16.5 million, or $0.25 per diluted share, compared to $12.9 million, or $0.61 per diluted share
- Adjustments to FFO in the first quarter totaled $1.5 million, or $0.02 per diluted share, compared to $9.8 million, or $0.47 per diluted share
FFO of $18.0 million, or $0.27 per diluted share, up from $3.1 million, or $0.15 per diluted share
AFFO of $(11.1) million, or $(0.17) per diluted share, compared to $1.7 million, or $0.08 per diluted share, primarily due to lower non-cash adjustments and higher recurring capital expenditures, partially offset by Core FFO improvements
Same-store cash NOI of $85.2 million, compared to $92.0 million, driven by lower office revenues from tenant move outs, partially offset by higher studio revenue due to additional production activity

Office Leasing

Maintained strong leasing momentum, executing 85 leases totaling 554,021 square feet (49% new / 51% renewal), including the following notable leases, each with significant term:
- 59,000-square-foot renewal with Weil, Gotshal & Manges at Towers at Shore Center in Redwood Shores
- 56,000-square-foot renewal and expansion with Mirum Pharmaceuticals at Metro Center in Foster City
- 46,000-square-foot renewal with Dell EMC at 505 First in Seattle's Pioneer Square
- 29,000-square-foot new lease with Axiado Corporation at Concourse in North San Jose
GAAP rents on new leases signed increased 1.8% compared to prior levels, while cash rents decreased 2.4%
In-service office portfolio occupancy improved for the third consecutive quarter to 77.8% (up from 76.3% in the prior quarter) and leased rate rose to 78.4% (up from 77.0% in the prior quarter)

Studio Leasing

In-service studio stages were 72.8% leased on a trailing three-month basis (compared to 74.5% in the prior quarter) and 72.5% on a trailing 12-month basis (up from 69.1% in the prior quarter)
- Excluding the Sunset Pier 94 development in Manhattan, where stages leased from 0% to 100% during the quarter, in-service studio stages would have been 78.2% leased (up 370 basis points from the prior quarter) on a trailing three-month basis
- Hollywood in-service studio stages (Sunset Gower, Sunset Bronson and Sunset Las Palmas) were 97.0% leased (up 280 basis points from the prior quarter) on a trailing three-month basis

Balance Sheet as of March 31, 2026

Total liquidity of $933.3 million consisting of $138.0 million in unrestricted cash and cash equivalents and $795.3 million of availability under the unsecured revolving credit facility
Net debt to undepreciated book value of 31.9% (HPP's share), with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9% and no debt maturities until third quarter 2026

Dividend

The Board of Directors declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock

2026 Outlook

The table below reflects key assumptions for this outlook:

Unaudited, in thousands
	Full-Year 2026
	Assumptions
Metric	Low	High
Average in-service office occupancy	80.0%	82.0%
Growth in same-store property cash NOI⁽¹⁾⁽²⁾	(1.75)%	(0.75)%
GAAP non-cash revenue⁽³⁾	$11,500	$16,500
GAAP non-cash expense⁽⁴⁾	$(6,000)	$(8,000)
General and administrative expenses⁽⁵⁾	$(49,500)	$(55,500)
Interest expense⁽⁶⁾	$(150,000)	$(160,000)
Non-real estate depreciation and amortization	$(12,000)	$(14,000)
FFO from unconsolidated joint ventures	$500	$2,500
FFO attributable to non-controlling interests	$(22,000)	$(26,000)
FFO attributable to preferred units/shares	$(20,000)	$(20,000)
Weighted average common stock/units outstanding—diluted⁽⁷⁾	65,000	66,000

(1)		Same-store defined as consolidated 37 office properties and three studio properties owned and stabilized as of January 1, 2025, and anticipated to be owned and stabilized through December 31, 2026.
(2)		See non-GAAP information below for cash NOI definition.
(3)		Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.
(4)		Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.
(5)		Includes estimated $8.0 million of non-cash compensation expense.
(6)		Includes estimated $6.5 million of non-cash interest expense.
(7)		Diluted shares represent Company ownership through shares of common stock, OP Units and other convertible or exchangeable instruments. Weighted average fully diluted common stock/units outstanding for 2026 includes estimated dilution of stock grants to executives under long-term incentive programs. This estimate is based on award potential as of the end of the most recently completed quarter, calculated in accordance with ASC 260, Earnings Per Share.

Supplemental Information

Conference Call

About Hudson Pacific Properties

Forward-Looking Statements

(FINANCIAL TABLES FOLLOW)

Consolidated Balance Sheets In thousands, except share data
	3/31/26			12/31/25
	(Unaudited)
ASSETS
Investment in real estate, at cost	$	7,831,517		$	7,793,299
Accumulated depreciation and amortization		(2,021,078	)		(1,953,048	)
Investment in real estate, net		5,810,439			5,840,251
Non-real estate property, plant and equipment, net		73,026			72,397
Cash and cash equivalents		138,008			138,358
Restricted cash		24,432			23,770
Accounts receivable, net		14,121			14,923
Straight-line rent receivables, net		200,387			195,425
Deferred leasing costs and intangible assets, net		307,900			307,390
Operating lease right-of-use assets		327,921			333,258
Prepaid expenses and other assets, net		77,135			86,607
Investment in unconsolidated real estate entities		248,178			246,835
Goodwill		8,754			8,754
TOTAL ASSETS	$	7,230,301		$	7,267,968

LIABILITIES AND EQUITY
Liabilities
Unsecured and secured debt, net	$	3,350,125		$	3,351,458
Joint venture partner debt		66,136			66,136
Accounts payable, accrued liabilities and other		229,078			209,382
Operating lease liabilities		339,815			343,886
Intangible liabilities, net		16,768			17,772
Security deposits, prepaid rent and other		81,078			74,369
Total liabilities		4,083,000			4,063,003

Redeemable preferred units of the operating partnership		2,795			2,795
Redeemable non-controlling interest in consolidated real estate entities		49,880			50,581

Equity
HPP stockholders' equity:
4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized; 17,000,000 shares outstanding at 3/31/26 and 12/31/25		425,000			425,000
Common stock, $0.01 par value, 103,200,000 authorized, 54,242,024 and 54,227,096 shares outstanding at 3/31/26 and 12/31/25, respectively.		529			529
Additional paid-in capital		2,495,302			2,548,488
Accumulated other comprehensive loss		(3,619	)		(1,860	)
Total HPP stockholders' equity		2,917,212			2,972,157
Non-controlling interest—members in consolidated real estate entities		64,903			67,869
Non-controlling interest—units in the operating partnership		112,511			111,563
Total equity		3,094,626			3,151,589
TOTAL LIABILITIES AND EQUITY	$	7,230,301		$	7,267,968

Consolidated Statements of Operations Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
REVENUES
Office
Rental revenues	$	145,228		$	158,393
Service and other revenues		3,446			6,818
Total office revenues		148,674			165,211
Studio
Rental revenues		13,797			13,652
Service and other revenues		19,381			19,596
Total studio revenues		33,178			33,248
Total revenues		181,852			198,459
OPERATING EXPENSES
Office operating expenses		69,822			72,277
Studio operating expenses		31,709			40,981
General and administrative		12,575			18,483
Depreciation and amortization		80,722			93,085
Total operating expenses		194,828			224,826
OTHER (EXPENSES) INCOME
Loss from unconsolidated real estate entities		(437	)		(1,254	)
Fee income		1,107			1,359
Interest expense		(37,994	)		(43,505	)
Interest income		1,649			435
Management services reimbursement income—unconsolidated real estate entities		1,124			975
Management services expense—unconsolidated real estate entities		(1,124	)		(975	)
Transaction-related expenses		(101	)		—
Unrealized loss on non-real estate investments		(1,962	)		(449	)
Gain on sale of real estate, net		—			10,023
Impairment loss		—			(18,476	)
Loss on extinguishment of debt		—			(1,858	)
Other income		158			8
Total other expenses		(37,580	)		(53,717	)
Loss before income tax provision		(50,556	)		(80,084	)
Income tax provision		(348	)		(194	)
Net loss		(50,904	)		(80,278	)
Net income attributable to Series A preferred units		(44	)		(146	)
Net income attributable to Series C preferred shares		(5,047	)		(5,047	)
Net loss attributable to non-controlling interest in consolidated real estate entities		1,610			7,467
Net loss attributable to redeemable non-controlling interest in consolidated real estate entities		701			902
Net loss attributable to common units in the operating partnership		553			2,394
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	(53,131	)	$	(74,708	)

BASIC AND DILUTED PER SHARE AMOUNTS
Net loss attributable to common stockholders—basic	$	(0.82	)	$	(3.70	)
Net loss attributable to common stockholders—diluted	$	(0.82	)	$	(3.70	)
Weighted average shares of common stock outstanding—basic		64,462			20,198
Weighted average shares of common stock outstanding—diluted		64,462			20,198

Funds from Operations⁽¹⁾ Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS ("FFO")⁽¹⁾:
Net loss	$	(50,904	)	$	(80,278	)
Adjustments:
Depreciation and amortization—consolidated		80,722			93,085
Depreciation and amortization—non-real estate assets		(3,441	)		(9,649	)
Depreciation and amortization—HPP's share from unconsolidated real estate entities⁽²⁾		1,476			1,045
Gain on sale of real estate, net		—			(10,023	)
Impairment loss—real estate assets		—			18,476
Unrealized loss on non-real estate investments		1,962			449
FFO attributable to non-controlling interests		(6,714	)		(4,854	)
FFO attributable to preferred shares and units		(5,091	)		(5,193	)
FFO to common stock/unit holders		18,010			3,058
Adjustments:
Transaction-related expenses		101			—
Refundable payroll tax credit interest income		(543	)		—
Prior year property tax refund		(538	)		—
Loan swap non-cash reevaluation		(488	)		682
Quixote non-compete termination		—			1,402
Quixote lease termination		—			5,865
Element LA debt early extinguishment loss		—			1,858
Core FFO to common stock/unit holders	$	16,542		$	12,865

Weighted average common stock/units outstanding—diluted		65,564			21,013
FFO per common stock/unit—diluted	$	0.27		$	0.15
Core FFO per common stock/unit—diluted	$	0.25		$	0.61

(1)		We calculate Funds from Operations ("FFO") in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States ("GAAP"), excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus the HPP's share of real estate-related depreciation and amortization, excluding amortization of deferred financing costs and depreciation of non-real estate assets. The calculation of FFO includes the HPP's share of amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets.

		FFO is a non-GAAP financial measure we believe is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

		Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.

		However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

(2)		HPP's share is a Non-GAAP financial measure calculated as the measure on a consolidated basis, in accordance with GAAP, plus our Operating Partnership's share of the measure from our unconsolidated joint ventures (calculated based upon the Operating Partnership's percentage ownership interest), minus our partners' share of the measure from our consolidated joint ventures (calculated based upon the partners' percentage ownership interests). We believe that presenting HPP's share of these measures provides useful information to investors regarding the Company's financial condition and/or results of operations because we have several significant joint ventures, and in some cases, we exercise significant influence over, but do not control, the joint venture. In such instances, GAAP requires us to account for the joint venture entity using the equity method of accounting, which we do not consolidate for financial reporting purposes. In other cases, GAAP requires us to consolidate the venture even though our partner(s) own(s) a significant percentage interest.

Adjusted Funds from Operations⁽¹⁾ Unaudited, in thousands, except per share data
	Three Months Ended
	3/31/26			3/31/25
Core FFO	$	16,542		$	12,865
Adjustments:
GAAP non-cash revenue⁽²⁾		(3,178	)		(671	)
GAAP non-cash expense⁽³⁾		1,885			1,704
Non-real estate depreciation and amortization		3,441			8,247
Non-cash interest expense		1,911			4,109
Share/unit-based compensation expense		1,912			5,115
Recurring capital expenditures, tenant improvements and lease commissions		(33,582	)		(29,658	)
AFFO	$	(11,069	)	$	1,711

Weighted average common stock/units outstanding—diluted		65,564			21,013
AFFO per common stock/unit—diluted	$	(0.17	)	$	0.08

(1)		Adjusted Funds from Operations ("AFFO") is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to Core FFO HPP's share of non-cash compensation expense and amortization of deferred financing costs, and subtracting recurring capital expenditures related to HPP's share of tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of HPP's share of straight-line rents, amortization of lease buy-out costs, amortization of above- and below-market lease intangible assets and liabilities, amortization of above- and below-market ground lease intangible assets and liabilities and amortization of loan discounts/premiums. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.
(2)		Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.
(3)		Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.

Net Operating Income⁽¹⁾ Unaudited, in thousands
	Three Months Ended
	3/31/26			3/31/25
RECONCILIATION OF NET LOSS TO NET OPERATING INCOME ("NOI") AND SAME-STORE CASH NET OPERATING INCOME ("NOI")
Net loss	$	(50,904	)	$	(80,278	)
Adjustments:
Loss from unconsolidated real estate entities		437			1,254
Fee income		(1,107	)		(1,359	)
Interest expense		37,994			43,505
Interest income		(1,649	)		(435	)
Management services reimbursement income—unconsolidated real estate entities		(1,124	)		(975	)
Management services expense—unconsolidated real estate entities		1,124			975
Transaction-related expenses		101			—
Unrealized loss on non-real estate investments		1,962			449
Gain on sale of real estate, net		—			(10,023	)
Impairment loss		—			18,476
Loss on extinguishment of debt		—			1,858
Other income		(158	)		(8	)
Income tax provision		348			194
General and administrative		12,575			18,483
Depreciation and amortization		80,722			93,085
NOI	$	80,321		$	85,201

NOI BREAKDOWN
Same-store office cash revenues		145,017			152,522
Straight-line rent		5,400			892
Amortization of above/below-market leases, net		1,004			865
Amortization of lease incentive costs		(2,803	)		(657	)
Same-store office revenues		148,618			153,622
Same-store studios cash revenues		20,045			17,204
Straight-line rent		(427	)		(196	)
Amortization of above-market and below-market leases, net		—			—
Amortization of lease incentive costs		(9	)		(9	)
Same-store studio revenues		19,609			16,999
Same-store revenues		168,227			170,621

Same-store office cash expenses		67,698			66,763
Straight-line rent		367			372
Share/unit-based compensation expense		—			11
Amortization of above/below-market ground leases, net		641			641
Same-store office expenses		68,706			67,787
Same-store studio cash expenses		12,129			10,963
Share/unit-based compensation expense		47			31
Same-store studio expenses		12,176			10,994
Same-store expenses		80,882			78,781


Same-store NOI		87,345			91,840
Non-same-store NOI		(7,024	)		(6,639	)
NOI	$	80,321		$	85,201

(1)

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507973038/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Vice President, Communications

(310) 622-1781

lmurray@hudsonppi.com

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Recent Analyst Ratings for

$HPP

Date	Price Target	Rating	Analyst
1/9/2026	$11.00	Outperform → Market Perform	BMO Capital Markets
10/1/2025	$3.50	Overweight	Cantor Fitzgerald
6/16/2025	$5.00	Buy	Odeon
3/28/2025	$4.00 → $5.00	Market Perform → Outperform	BMO Capital Markets
3/17/2025	$2.70	Hold	Jefferies
3/10/2025	$4.00	Equal Weight → Overweight	Wells Fargo
11/12/2024	$5.50 → $5.00	Buy → Hold	Jefferies
8/14/2024		Outperform → Peer Perform	Wolfe Research

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Insider Purchases

Director Glaser Jonathan M bought $999,999 worth of shares (448,430 units at $2.23), increasing direct ownership by 204% to 668,699 units (SEC Form 4)

Director Harris Robert L Ii bought $100,000 worth of shares (44,843 units at $2.23), increasing direct ownership by 35% to 174,731 units (SEC Form 4)

Chief Executive Officer Coleman Victor J bought $499,999 worth of shares (224,215 units at $2.23), increasing direct ownership by 46% to 711,666 units (SEC Form 4)

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Insider Trading

Director Sholem Barry A was granted 7,462 shares, increasing direct ownership by 13% to 64,707 units (SEC Form 4)

Director Harris Robert L Ii was granted 7,462 shares, increasing direct ownership by 30% to 32,416 units (SEC Form 4)

Director Ferguson T Ritson was granted 7,462 shares, increasing direct ownership by 39% to 26,459 units (SEC Form 4)

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SEC Filings

Hudson Pacific Properties Inc. filed SEC Form 8-K: Submission of Matters to a Vote of Security Holders

Hudson Pacific Properties Inc. filed SEC Form 8-K: Results of Operations and Financial Condition, Regulation FD Disclosure, Financial Statements and Exhibits

SEC Form DEF 14A filed by Hudson Pacific Properties Inc.

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