Hudson Pacific Properties (HPP) AI Stock Analysis

• Market Cap: $357.16M
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -7.89%
• EPS Growth: -15.88%
• Country: US
• Employees: 740
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -4.31
• Shares Outstanding: 54,242,023
• 10 Day Avg. Volume: 1,500,784
• 30 Day Avg. Volume: 1,249,031
• PEG Ratio: 0.03
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 4.89
• Enterprise Value/Market Cap: 11.18
• Enterprise Value/Revenue: 4.81
• Enterprise Value/Gross Profit: -11.40
• Enterprise Value/Ebitda: -80.12
• 1Y Price Target: $13.41
• Price Target Upside: 106.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): -3.56
• Revenue Forecast (FY): $748.99M

• Rating: 45 Neutral
• Price Target: $6.50 ▲(0.00% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by materially weakened profitability (widening losses and negative EBITDA) and a bearish longer-term price trend (below key moving averages with negative MACD). Offsetting these are improved leverage and resilient cash flow, plus earnings-call positives around leasing momentum, liquidity, and near-term maturity runway, but revenue/rent pressures and studio weakness limit the upside.

Positive Factors

Improved leverage and liquidity

A materially stronger capital structure reduces refinancing risk and interest burden over the next several quarters. Lower debt levels and a more conservative debt-to-equity posture increase financial flexibility to fund leasing, complete developments, or withstand cyclical rents without immediate asset sales.

Consistent operating and free cash flow

Persistent positive operating and free cash flow, with improvement in 2025, indicates the core portfolio generates cash despite GAAP losses. Durable cash generation supports debt servicing, opportunistic capex or development, and reduces reliance on capital markets during near-term cycles.

Robust office leasing and early studio leasing wins

Sustained leasing momentum and positive net absorption signal improved demand and underwriting power across key West Coast markets. High leasing volumes plus early lease-up at new studio projects increase occupancy and forward revenue visibility, supporting medium-term FFO recovery.

Negative Factors

Weak profitability and negative EBITDA

Sustained GAAP losses and a negative EBITDA year reduce retained earnings and impair return metrics. Persistent earnings weakness can limit internal funding, pressure distributable cash flow metrics, and necessitate continued asset sales or cost cuts to restore sustainable FFO and dividends.

Studio demand volatility

The studio business is cyclical and exposure to production demand introduces structural volatility to revenue and occupancy. A prolonged downturn in production activity can depress studio rents and utilization, undermining diversification benefits and pressuring consolidated cash flows.

Rent roll-downs and lower same-store NOI

Declining rent realizations and lower same-store NOI reduce per-property cash generation and margin sustainability. Structural roll-downs from pre-pandemic peak leases make it harder to restore previous revenue levels, slowing FFO recovery and limiting reinvestment capacity.

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, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP, and listed as a component of the S&P MidCap 400 Index.

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 and reimbursements (where applicable) for certain property operating expenses, and revenue from parking and other building-related services when offered. (2) Studio and media facilities income: rental income from leasing studio space and associated production support space (e.g., offices on or near studio campuses) under agreements with production companies, media companies, and related tenants; this also includes revenues tied to the operation of studio campuses, such as reimbursements for certain operating costs when structured in leases. (3) Other property-related income: fees and ancillary income associated with operating its real estate, which can include items like tenant services and miscellaneous property income depending on lease terms. In addition to recurring rental revenues, HPP can generate earnings or cash proceeds from (4) development and redevelopment activities when new projects are delivered and leased (which increases rental revenue over time), and (5) dispositions of properties, where gains on sale may occur if assets are sold above their carrying values (the availability and magnitude of such gains varies by transaction and market conditions). As a REIT, HPP’s business model is driven by property occupancy, achieved rental rates, lease terms (including escalations), tenant credit quality, and operating expense management; financing conditions and interest rates can also materially influence cash flow available after debt service because real estate operations are commonly leveraged.

Hudson Pacific Properties Financial Statement Overview

Summary

Mixed fundamentals: cash flow is relatively resilient with positive operating and free cash flow (and improved 2025 FCF), and leverage improved sharply in 2025 as debt fell. However, the income statement is a major drag with materially deteriorating profitability, widening net losses in 2024–2025, and negative EBITDA in 2025.

Income Statement

The earnings profile has weakened materially. Revenue has been choppy with a multi-year decline (2022–2024) followed by a modest rebound in 2025, but profitability deteriorated sharply: net losses widened meaningfully in 2024–2025, pushing net margin deep into negative territory. Operating performance also slipped versus prior years, with 2025 showing negative EBITDA, pointing to pressure from the office REIT operating backdrop and/or elevated costs and write-downs. The main positive is that revenue did not collapse and did improve in 2025, but earnings quality and consistency are currently poor.

Balance Sheet

Leverage improved significantly in 2025, with debt levels dropping sharply and debt-to-equity moving from high (2021–2024) to low in 2025, which reduces financial risk and refinancing pressure. However, returns remain weak: equity is still generating sizable losses in recent years (negative return on equity), reflecting the challenged earnings picture. Overall, the balance sheet shows a meaningful step-up in capital structure conservatism, but the ongoing losses are a key offset.

Cash Flow

Cash generation is a relative bright spot. Operating cash flow and free cash flow are positive in every year shown except 2020 free cash flow, and 2025 free cash flow improved materially versus 2024. Importantly, cash flow remained positive even while accounting earnings were deeply negative in 2023–2025, suggesting the business is still generating cash despite reported losses. The key weakness is that operating cash flow covers only a modest portion of debt in recent years, implying cash flow alone may not be sufficient to comfortably de-risk the capital structure without continued improvements.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	831.11M	842.08M	952.30M	1.03B	896.84M
Gross Profit	-350.16M	388.00M	501.83M	612.41M	560.99M
EBITDA	-45.39M	152.05M	448.36M	506.60M	494.56M
Net Income	-551.69M	-343.34M	-173.89M	-34.97M	10.11M
Balance Sheet
Total Assets	7.27B	8.13B	8.28B	9.32B	8.99B
Cash, Cash Equivalents and Short-Term Investments	138.36M	63.26M	100.39M	255.76M	225.88M
Total Debt	3.78B	4.62B	4.40B	5.05B	4.22B
Total Liabilities	4.06B	4.96B	4.73B	5.44B	4.66B
Stockholders Equity	2.97B	2.86B	3.08B	3.31B	3.74B
Cash Flow
Free Cash Flow	98.91M	141.59M	226.52M	349.29M	189.63M
Operating Cash Flow	120.98M	164.66M	232.26M	369.50M	314.86M
Investing Cash Flow	42.84M	-250.54M	467.84M	-378.09M	-754.21M
Financing Cash Flow	-100.87M	65.90M	-866.67M	97.45M	486.68M

Hudson Pacific Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HPP, the sentiment is Negative. The current price of 6.5 is below the 20-day moving average (MA) of 6.76, below the 50-day MA of 8.16, and below the 200-day MA of 14.75, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 40.02 is Neutral, neither overbought nor oversold. The STOCH value of 14.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPP.

Hudson Pacific Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DEA	57 Neutral	$1.02B	73.21	0.98%	9.58%	11.02%	-30.91%
PDM	51 Neutral	$827.75M	-6.00	-4.45%	6.09%	-1.23%	9.10%
BDN	51 Neutral	$505.26M	-2.82	-20.40%	17.55%	-5.52%	40.27%
ELME	46 Neutral	$183.05M	-9.94	-13.43%	4.14%	3.10%	-900.13%
HPP	45 Neutral	$357.16M	-0.88	-17.84%	―	-7.89%	-15.88%

Hudson Pacific Properties Corporate Events

Hudson Pacific Highlights Breakthrough Year in Q4 2025 Results

On February 26, 2026, Hudson Pacific Properties reported its fourth-quarter 2025 results, highlighting a “breakthrough year” marked by substantial balance sheet and operational restructuring. The company executed nearly $330 million of asset sales, over $2 billion of capital transactions that extended debt maturities and boosted liquidity to $933.6 million, and delivered cost savings via lower general and administrative expenses and operational changes.

Despite stronger leasing, including 2.2 million square feet of office leases signed in 2025 and a second consecutive quarter of positive net absorption, Hudson Pacific recorded a net loss attributable to common stockholders of $277.9 million due largely to a non-cash impairment at Quixote and one-time lease-termination-related items. The firm sold the Element LA campus for $150 million plus an $81 million lease termination payment to reduce CMBS debt, completed the Sunset Pier 94 Studios project with about 90% of the facility leased early in its first year, modestly improved occupancy across its office and studio portfolios, and set a 2026 full-year FFO outlook of $0.96 to $1.06 per diluted share, signaling expectations of returning to FFO growth while pursuing further deleveraging and occupancy gains.

The most recent analyst rating on (HPP) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.