Hudson Pacific Properties Reports Third Quarter 2026 Financial Results
Hudson Pacific Properties, Inc. (HPP) filed an SEC Form 8-K — Results of Operations and Financial Condition. Hudson Pacific Properties, Inc. Press Release Hudson Pacific Properties Reports Third Quarter 2026 Financial Results – Fifth Consecutive Quarter of In-Service Office Occupancy Growth to 85.6%; Executed 534,000 Square Feet of Office Leases – – HPP's Share of Debt Reduced 14% Year-
How this was made
The 30-second read
Why it matters
The raised guidance and debt reduction provide a clear catalyst for price movement.
Market read
First disclosure of earnings and guidance for the quarter, making it a primary market-moving event.
What to watch
Potential headwinds from rising interest rates could affect future financing costs.
Hudson Pacific Properties Reports Third Quarter 2026 Financial Results – Fifth Consecutive Quarter of In-Service Office Occupancy Growth to 85.6%; Executed 534,000 Square Feet of Office Leases – – HPP's Share of Debt Reduced 14% Year-Over-Year with $840 Million of Liquidity, Pro Forma – – Full-Year Guidance Raised and Narrowed
Core FFO per diluted share and same-store cash NOI increased, office occupancy improved for a fifth consecutive quarter, and full-year Core FFO guidance was raised and narrowed. These operating gains were offset by lower total revenue, a larger GAAP net loss driven by impairment losses and property-sale losses, and negative AFFO reflecting higher lease-up-related capital expenditures.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended 9/30/26GAAP | $180.9M | – | – |
| Total revenues, nine months ended 9/30/26GAAP | $551.0M | – | – |
| Office operating expenses, three months ended 9/30/26GAAP | $71.07M | – | – |
| Studio operating expenses, three months ended 9/30/26GAAP | $27.41M | – | – |
| General and administrative expenses, three months ended 9/30/26GAAP | $12.34M | – | – |
| Depreciation and amortization, three months ended 9/30/26GAAP | $77.86M | – | – |
| Total operating expenses, three months ended 9/30/26GAAP | $188.7M | – | – |
| Interest expense, three months ended 9/30/26GAAP | −$40.94M | – | – |
| Loss on sale of real estate, net, three months ended 9/30/26GAAP | −$20.28M | – | – |
| Impairment loss, three months ended 9/30/26GAAP | −$147.8M | – | – |
| Net loss attributable to common stockholders, three months ended 9/30/26GAAP | −$218.1M | – | – |
| Net loss attributable to common stockholders per diluted share, three months ended 9/30/26GAAP | $(3.38) | – | – |
| Net loss attributable to common stockholders, nine months ended 9/30/26GAAP | −$375.8M | – | – |
| Net loss attributable to common stockholders per diluted share, nine months ended 9/30/26GAAP | $(5.83) | – | – |
| FFO to common stock/unit holders, three months ended 9/30/26non-GAAP | $21,420 | – | – |
| FFO per common stock/unit—diluted, three months ended 9/30/26non-GAAP | $0.33 | – | – |
| Core FFO to common stock/unit holders, three months ended 9/30/26non-GAAP | $18,589 | – | – |
| Core FFO per common stock/unit—diluted, three months ended 9/30/26non-GAAP | $0.28 | – | up approximately 8% on a per share basis |
| Core FFO to common stock/unit holders, nine months ended 9/30/26non-GAAP | $58,269 | – | – |
| Core FFO per common stock/unit—diluted, nine months ended 9/30/26non-GAAP | $0.88 | – | – |
| AFFO, three months ended 9/30/26non-GAAP | −$5.09M | – | – |
| AFFO per common stock/unit—diluted, three months ended 9/30/26non-GAAP | $(0.08) | – | – |
| NOI, three months ended 9/30/26non-GAAP | $82.42M | – | – |
| Same-store NOI, three months ended 9/30/26non-GAAP | $86.42M | – | – |
| Same-store cash NOInon-GAAP | $85.2M | – | grew 8.3% |
| In-service office portfolio occupancyother | 85.6% | up 310 basis points sequentially | – |
| In-service office portfolio leased rateother | 86.1% | up 330 basis points sequentially | – |
| In-service studio stages leased on a trailing three-month basisother | 74.7% | stable compared to the prior quarter | – |
| In-service studio stages leased on a trailing 12-month basisother | 75.1% | up 50 basis points sequentially | – |
| Unrestricted cash and cash equivalents as of 9/30/26GAAP | $160.5M | – | – |
| Total liquidity as of 9/30/26other | $955.8M | – | – |
| Net debt to undepreciated book value (HPP's share)other | 32.1% | – | – |
| Debt (HPP's share), pro forma for the subsequent senior notes repurchase and asset salesother | $2.7B | – | down $425.0 million, or 14%, from a year ago |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Office, total revenues, three months ended 9/30/26Office rental revenues were $144,743 and service and other revenues were $3,868. | $148.6M | – | – |
| Studio, total revenues, three months ended 9/30/26Studio Rental revenues were $12,492 and service and other revenues were $19,790. | $32.28M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Full-Year 2026 outlook
- NoteCore FFO outlook: $1.15 to $1.21 per diluted share
- NoteAverage in-service office occupancy: 82.0% to 84.0%
- NoteGrowth in same-store cash NOI: 0.00% to 1.00%
- NoteGAAP non-cash revenue: $8,500 to $13,500
- NoteGAAP non-cash expense: $(5,500) to $(7,500)
- NoteGeneral and administrative expenses: $(47,000) to $(53,000)
- NoteInterest expense: $(151,500) to $(161,500)
- NoteNon-real estate depreciation and amortization: $(11,500) to $(13,500)
- NoteFFO from unconsolidated joint ventures: $2,500 to $4,500
- NoteFFO attributable to non-controlling interests: $(20,500) to $(24,500)
- NoteFFO attributable to preferred units/shares: $(20,000) to $(20,000)
- NoteWeighted average common stock/units outstanding—diluted: 65,200 to 66,200
Capital returns
- The Board of Directors declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock.
- Subsequent to the quarter, repurchased $200.0 million of senior notes due 2027 and 2028 at a discount to par.
What drove it
- Total revenue was primarily affected by asset dispositions, partially offset by improved office occupancy and studio production activity.
- Core FFO was primarily driven by improved same-store NOI and lower non-real estate depreciation due to the exit of non-core Quixote operations, partially offset by asset sales.
- Same-store cash NOI was driven by improved office occupancy and studio production activity.
- Executed 74 office leases totaling 533,708 square feet, consisting of 49% new leases and 51% renewal leases.
- GAAP and cash rents on new and renewal leases signed increased 6.0% and 0.4%, respectively, compared to prior leases for the same space.
- Sunset Pier 94 Studios reached 82.2% leased, up 370 basis points sequentially, while Hollywood studio stages remained 95.0% leased.
Concerns
- Net loss attributable to common stockholders was $(218,057), compared to $(136,467), primarily due to non-cash impairments and a loss on the sale of office properties.
- AFFO was $(5,094), compared to $12,326, primarily reflecting higher capital expenditures associated with lease-up activity.
- Total revenues were $180,893, compared to $186,617, primarily due to asset dispositions.
- Following the expiration of its 38,000-square-foot lease subsequent to quarter-end, Weil, Gotshal & Manges would comprise 0.9% of HPP’s share of annualized base rent.
- The outlook conservatively excludes Weil, Gotshal & Manges rent for the balance of the year despite the Company receiving no indication that the tenant will stop paying rent.
What to watch
- The leasing pipeline remained above 2 million square feet, with more than 1 million square feet in advanced stages.
- Average in-service office occupancy guidance of 82.0% to 84.0% and same-store cash NOI growth guidance of 0.00% to 1.00%.
- The effect of asset sales and the temporary removal of Fourth & Traction from the in-service and same-store portfolios for seismic upgrades ahead of re-leasing.
- Use of liquidity after the senior-notes repurchase and asset sales.
- The November 2027 maturity of the $1.1 billion Hollywood Media Portfolio CMBS loan.
Balance sheet and cash flow
- Total liquidity of $955.8 million consisting of $160.5 million in unrestricted cash and cash equivalents and full availability of $795.3 million under the unsecured revolving credit facility.
- Pro forma for the subsequent senior notes repurchase and the sales of Skyport Plaza and a non-core Quixote asset, total liquidity of $840.4 million, consisting of $75.1 million in unrestricted cash and cash equivalents and $765.3 million of availability under the unsecured revolving credit facility.
- Net debt to undepreciated book value (HPP's share) of 32.1%, with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9%.
- Together with its joint venture partner, extended the $1.1 billion Hollywood Media Portfolio CMBS loan to November 2027, with no principal paydown and an unchanged spread, and SOFR fixed at 3.50%.
- Sold 2001 Gateway in North San Jose and 875 and 899 Howard in San Francisco for an aggregate $90.5 million, with net proceeds used to partially fund the subsequent repurchase of senior notes.
- Subsequent to the quarter, sold Skyport Plaza in North San Jose for $75.5 million, with net proceeds used to pay down the unsecured revolving credit facility.
Analysis
Hudson Pacific reported lower third-quarter revenue but improving underlying operating indicators. Total revenues were $180,893 versus $186,617, with the release attributing the decline primarily to asset dispositions. Office leasing activity was substantial, with 74 leases totaling 533,708 square feet, and in-service office occupancy rose for a fifth consecutive quarter to 85.6%, up 310 basis points sequentially. The leased rate reached 86.1%, up 330 basis points sequentially.
Property-level momentum supported non-GAAP earnings. Same-store cash NOI was $85.2 million, up 8.3% from $78.7 million, driven by improved office occupancy and studio production activity. Core FFO was $18.6 million, or $0.28 per diluted share, versus $16.7 million, or $0.26 per diluted share, with per-share Core FFO up approximately 8%. Management cited improved same-store NOI and lower non-real estate depreciation after exiting non-core Quixote operations, partly offset by asset sales.
GAAP results and AFFO remained pressured. Net loss attributable to common stockholders was $(218,057), or $(3.38) per diluted share, compared with $(136,467), or $(2.12) per diluted share. The quarter included a $(147,825) impairment loss and a $(20,284) loss on sale of real estate. AFFO was $(5,094), versus $12,326, as recurring capital expenditures, tenant improvements and lease commissions were $(31,084), with the release attributing the AFFO decline primarily to higher capital expenditures associated with lease-up activity.
The balance-sheet actions focused on asset sales, debt reduction and liquidity. HPP sold assets for an aggregate $90.5 million during the quarter, subsequently sold Skyport Plaza for $75.5 million, and subsequently repurchased $200.0 million of senior notes due 2027 and 2028. Pro forma liquidity was $840.4 million, and pro forma debt attributable to HPP was $2.7 billion, down $425.0 million, or 14%, from a year ago. The Company also extended the $1.1 billion Hollywood Media Portfolio CMBS loan to November 2027.
Management raised and narrowed full-year 2026 Core FFO guidance to $1.15 to $1.21 per diluted share from $1.12 to $1.20. The revised outlook assumes average in-service office occupancy of 82.0% to 84.0% and same-store cash NOI growth of 0.00% to 1.00%. Management said the 200 basis point improvement to average office occupancy and the 175 basis point improvement to same-store cash NOI growth were essentially attributable to the sales of 875 Howard and Skyport Plaza and the temporary removal of Fourth & Traction for seismic upgrades. The Company stated that absent these changes it likely would have maintained its prior outlook for both metrics.
Management, verbatim
Our third quarter results build on the momentum we established last quarter. We signed more than half a million square feet of office leases, bringing our year-to-date total to 2.4 million square feet, up 40% from the first nine months of last year, and grew in-service office occupancy for the fifth consecutive quarter. Core FFO per share and same-store cash NOI each grew approximately 8% year-over-year, and our studio business continued to gain traction, with Sunset Pier 94 now more than 82% leased and our Hollywood stages holding steady at 95% leased.
Victor Coleman, CEO and Chairman
We also further enhanced our financial flexibility. Pro forma for our recent asset sales and senior notes repurchase, our share of debt is down 14% year-over-year, and we have $840 million of liquidity. Looking ahead, our leasing pipeline remains above 2 million square feet, with more than 1 million square feet now in advanced stages, nearly twice the level of a year ago. A pipeline of similar size set the stage for a very strong 2026, and the greater maturity of today’s pipeline further positions us to extend our earnings growth into 2027.
Victor Coleman, CEO and Chairman
Not in the filing
stated, not guessed- Operating cash flow
- Free cash flow
- Gross margin
- Common stock repurchases
- Common-stock dividend
- Prior-period outlook document for formal actual-versus-prior-guidance comparison
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8‑K reporting Q3 2026 operating results and updated guidance.
Ticker impact
Hudson Pacific Properties reported Q3 2026 results with raised full-year guidance and reduced debt, providing fresh material for traders.
likely upward pressure as investors price in the raised guidance and stronger liquidity
The company disclosed higher full-year Core FFO guidance and a 14% YoY debt reduction, which are new, material facts that can move the stock immediately.
Market effects
Improves outlook for the US office REIT sector, potentially lifting peers.
Positive for West Coast office property markets.
Limited to US REIT investors.
Counterpoint
If occupancy growth stalls, the raised guidance may be premature.
Key entities
- companyHudson Pacific Properties, Inc.
US REIT focused on office and studio properties.
