Balancing Operational Momentum and Execution Risk: Justifying a Hold Rating on Hudson Pacific

BMO Capital analyst John Kim has maintained their neutral stance on HPP stock, giving a Hold rating on February 24.

John Kim has given his Hold rating due to a combination of factors that balance encouraging operational momentum with material execution risk. On the positive side, Hudson Pacific’s 4Q25 Core FFO per share beat consensus, office occupancy and leasing rates improved modestly, and the company is guiding to further occupancy gains in 2026 supported by a growing leasing pipeline and stronger studio revenues.

At the same time, Kim is cautious because the 2026 outlook depends on a sizable step-up in in-service office occupancy from a still-subdued leased base, with notable lease expirations that could offset progress. Cash same-store NOI trends remain negative, leasing spreads are under pressure, and certain assets, such as Sunset Glenoaks, are not generating enough cash to cover debt service. Taken together, these strengths and weaknesses justify a neutral stance rather than a more decisive Buy or Sell recommendation.

In another report released on February 24, Piper Sandler also maintained a Hold rating on the stock with a $10.00 price target.