Hudson Pacific Properties (HPP) AI Stock Analysis

• Market Cap: $1.03B
• Dividend Yield: 2.07%
• Average Volume (3M): 5.46M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• Revenue Growth: -9.68%
• EPS Growth: -69.03%
• Country: US
• Employees: 740
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Office
• EPS (TTM): -0.41
• Shares Outstanding: 379,150,880
• 10 Day Avg. Volume: 5,727,256
• 30 Day Avg. Volume: 5,463,145
• PEG Ratio: -0.01
• Price to Book (P/B): 0.15
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 3.02
• Enterprise Value/Market Cap: 5.04
• Enterprise Value/Revenue: 6.51
• Enterprise Value/Gross Profit: 16.38
• Enterprise Value/Ebitda: 42.84
• 1Y Price Target: $3.29
• Price Target Upside: 15.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 53 Neutral
• Price Target: $2.50 ▼(-12.59% Downside)

Hudson Pacific Properties faces significant financial challenges, with declining revenues and high leverage being major concerns. However, strong leasing activity and a solid liquidity position provide some optimism. The technical indicators suggest moderate bullish momentum, but valuation remains unattractive due to profitability issues.

Positive Factors

Balance Sheet Stability

The $600M public offering of common stock provides significant breathing room to reduce debt and fund required TIs and capex.

Cost Management

HPP significantly reduced its G&A expenses, resulting in notable savings and a reduction in anticipated expenses for upcoming years.

Negative Factors

Earnings Outlook

The highly dilutive equity raise has resulted in lowering the 2025 and 2026 estimates for Funds From Operations per share.

Equity Dilution

The transaction is highly dilutive and severely impacts its NAV per share, estimated to be reduced by 45%.

Hudson Pacific Properties Business Overview & Revenue Model

Company Description

Hudson Pacific Properties (HPP) is a real estate investment trust (REIT) focused on the acquisition, development, and management of office and studio properties in high-demand markets, primarily in the West Coast of the United States and Canada. The company specializes in modern office spaces and creative studios, catering to a diverse range of tenants, including technology, media, and entertainment firms. HPP's portfolio features a mix of properties, including office buildings, media studios, and mixed-use developments, designed to meet the evolving needs of dynamic industries.

How the Company Makes Money

Hudson Pacific Properties generates revenue primarily through leasing its office and studio spaces to tenants, which provides a consistent income stream. The company benefits from long-term leases, often with built-in rent escalations, allowing for predictable cash flows. Additionally, HPP earns revenue from property management services and ancillary services related to its real estate holdings. Significant partnerships with major media and technology companies enhance tenant occupancy and rental rates, contributing to its financial performance. The company's focus on high-demand urban markets and its proactive development strategy are critical factors that bolster its earnings potential.

Hudson Pacific Properties Financial Statement Overview

Summary

Hudson Pacific Properties is facing financial headwinds with declining revenues and profitability issues. High leverage is a concern, although stable cash flow generation provides some stability. Improvements in revenue growth and profitability are crucial for enhancing financial health.

Income Statement

Hudson Pacific Properties has faced declining revenues over recent years, with a negative net profit margin indicating ongoing challenges in generating profits. The EBIT and EBITDA margins are low, reflecting limited operational efficiency. While gross profit margins have shown some resilience, the overall income statement portrays a company struggling to maintain revenue and profit growth.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which may pose financial risks. The equity ratio remains moderate, suggesting some stability. However, the negative return on equity reflects ongoing profitability issues that need to be addressed to improve shareholder returns.

Cash Flow

Operating cash flow has been relatively stable, but free cash flow has fluctuated, highlighting potential constraints in cash generation. The company shows a reasonable operating cash flow to net income ratio, though free cash flow growth has been inconsistent, posing challenges for future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	793.07M	842.08M	952.30M	1.03B	896.84M	804.97M
Gross Profit	315.43M	388.00M	497.71M	606.75M	552.08M	504.75M
EBITDA	120.60M	152.05M	423.75M	506.60M	506.21M	424.84M
Net Income	-375.15M	-352.29M	-173.89M	-34.97M	10.11M	2.04M
Balance Sheet
Total Assets	8.00B	8.13B	8.28B	9.32B	8.99B	8.35B
Cash, Cash Equivalents and Short-Term Investments	86.47M	63.26M	100.39M	255.76M	225.88M	248.80M
Total Debt	4.61B	4.62B	4.40B	5.05B	4.22B	3.87B
Total Liabilities	4.91B	4.96B	4.73B	5.43B	4.65B	4.25B
Stockholders Equity	2.78B	2.86B	3.08B	3.31B	3.74B	3.46B
Cash Flow
Free Cash Flow	107.34M	141.59M	226.52M	252.83M	189.63M	-291.91M
Operating Cash Flow	130.06M	164.66M	232.26M	369.50M	314.86M	302.03M
Investing Cash Flow	-163.23M	-250.54M	467.84M	-378.09M	-754.21M	-1.01B
Financing Cash Flow	33.52M	65.90M	-866.67M	97.45M	486.68M	796.09M

Hudson Pacific Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 2.86 is above the 20-day moving average (MA) of 2.60, above the 50-day MA of 2.64, and above the 200-day MA of 2.79, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.02 is Neutral, neither overbought nor oversold. The STOCH value of 69.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HPP.

Hudson Pacific Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIO	65 Neutral	$280.12M	―	-17.53%	5.76%	-3.69%	-777.30%
Sector *	63 Neutral	$7.00B	13.45	-0.52%	6.98%	3.61%	-22.78%
PDM	57 Neutral	$1.01B	―	-4.27%	5.97%	-6.74%	17.44%
BDN	57 Neutral	$717.76M	―	-29.94%	14.25%	-3.05%	-94.96%
ONL	54 Neutral	$157.68M	―	-10.03%	8.30%	-15.14%	16.61%
HPP	53 Neutral	$1.03B	―	-12.35%	2.07%	-9.68%	-69.03%
NYC	41 Neutral	$29.06M	―	-112.61%	―	-11.84%	52.84%

Hudson Pacific Properties Corporate Events

Hudson Pacific Properties Reports Q2 2025 Financial Results

Hudson Pacific Properties reported its financial results for the second quarter of 2025, highlighting significant leasing activity with 1.2 million square feet of office leases signed in the first half of the year. The company is benefiting from increased investments in AI and a recovering media industry, which are expected to drive future growth. Despite a decrease in total revenue compared to the previous year, Hudson Pacific has maintained a strong liquidity position with $1.0 billion available, and has made strategic moves to stabilize its portfolio and enhance occupancy rates. The company has also addressed significant debt maturities and increased its revolving credit capacity, positioning itself for future opportunities.

Hudson Pacific Properties Streamlines Board, Reduces Expenses

On June 25, 2025, Hudson Pacific Properties announced a reduction in its Board of Directors from ten to eight members as part of an initiative to cut annual general and administrative expenses. Directors Ebs Burnough and Christy Haubegger resigned without disagreement, and the Board appointed Theodore Antenucci and Jonathan Glaser to the Compensation Committee. CEO Victor Coleman highlighted the streamlined board’s role in supporting cost management and value creation for shareholders, while expressing optimism about the company’s future, bolstered by California’s increased film and TV production incentives.

Hudson Pacific Properties Executives Forfeit 2024 Equity Awards

On June 17, 2025, Hudson Pacific Properties announced that its CEO Victor Coleman, President Mark Lammas, and CFO Harout Diramerian forfeited their 2024 performance unit equity awards. This decision will lead to $14.3 million in general and administrative savings, with $4.9 million realized in 2025 and the rest over the next three years.

Hudson Pacific Properties Completes Public Offering to Boost Finances

On June 13, 2025, Hudson Pacific Properties, Inc. completed an underwritten public offering of common stock and pre-funded warrants, resulting in the issuance of 237,553,442 common units and 71,863,597 OP Warrants to its operating partnership. This move, coupled with a registration rights agreement and the forfeiture of 2024 performance unit equity awards by top executives, is expected to generate significant administrative savings and strengthen the company’s financial position.

Hudson Pacific Announces $600M Stock Offering

On June 11, 2025, Hudson Pacific Properties announced a $600 million public offering of common stock and pre-funded warrants, intending to use the proceeds to repay debts and for general corporate purposes. The company reported a 24% increase in leasing activity in the first quarter of 2025, the highest since 2022, and is implementing cost reduction initiatives to optimize overhead and improve liquidity, with a focus on enhancing operating margins and addressing debt maturities.