Hudson Pacific Properties (HPP) AI Stock Analysis

• Market Cap: $719.38M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -7.89%
• EPS Growth: -15.88%
• Country: US
• Employees: 740
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -2.10
• Shares Outstanding: 54,217,407
• 10 Day Avg. Volume: 1,222,283
• 30 Day Avg. Volume: 1,096,862
• 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: 7.90
• Enterprise Value/Revenue: 7.24
• Enterprise Value/Gross Profit: 16.54
• Enterprise Value/Ebitda: 97.84
• 1Y Price Target: $4.08
• Price Target Upside: -66.45% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): -7.61
• Revenue Forecast (FY): $728.94M

• Rating: 46 Neutral
• Price Target: $13.00 ▲(6.91% Upside)

Hudson Pacific Properties' overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and high leverage. Technical indicators also suggest a bearish trend. While recent earnings call highlights and corporate events provide some positive outlook, they are not sufficient to offset the significant financial and valuation challenges.

Positive Factors

Strong Office Leasing Execution

The robust office leasing activity indicates strong demand and effective market positioning, which can lead to stable long-term revenue streams.

AI and Technology Expansion Benefits

Positioning in tech-driven markets allows HPP to capitalize on structural growth trends, enhancing its competitive advantage and tenant base.

Strengthened Financial Position

Improved financial flexibility through refinancing and liquidity ensures operational stability and supports strategic investments.

Negative Factors

Decline in Total Revenue

Declining revenues highlight challenges in maintaining growth and profitability, potentially affecting long-term financial health.

Challenges in Studio Segment

Ongoing challenges in the studio segment may hinder revenue diversification and growth opportunities in a crucial market.

High Leverage

High leverage poses financial risks, especially in a rising interest rate environment, potentially impacting cash flow and flexibility.

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

Hudson Pacific Properties generates revenue primarily through leasing office and studio spaces to tenants. The company earns rental income from long-term leases, which often include escalations and additional charges for property expenses. Additionally, HPP may generate revenue through property sales or development projects, where it can capitalize on increased property values. Strategic partnerships with major industry players in technology and entertainment further enhance its tenant base and occupancy rates. The company also focuses on operational efficiency and sustainability to reduce costs and improve profitability, contributing to its overall financial performance.

Hudson Pacific Properties Financial Statement Overview

Summary

Hudson Pacific Properties faces significant financial challenges, with declining revenues and profitability issues. The high leverage and negative return on equity highlight financial risks. Cash flow metrics further emphasize the need for improved operational efficiency and cost management to stabilize the financial position.

Income Statement

Hudson Pacific Properties has experienced declining revenue growth over the past few years, with a negative growth rate in the TTM period. The company has struggled with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has also decreased over time, reflecting challenges in maintaining cost efficiency.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which poses a risk in a rising interest rate environment. Return on equity is negative, reflecting ongoing losses. However, the equity ratio remains relatively stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a significant drop in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The free cash flow to net income ratio is positive, but the overall cash flow position is weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	784.74M	842.08M	952.30M	1.03B	896.84M	805.70M
Gross Profit	343.55M	388.00M	501.83M	612.41M	560.99M	505.48M
EBITDA	58.09M	152.05M	448.36M	506.60M	494.56M	378.98M
Net Income	-451.39M	-343.34M	-173.89M	-34.97M	10.11M	2.04M
Balance Sheet
Total Assets	7.80B	8.13B	8.28B	9.32B	8.99B	8.35B
Cash, Cash Equivalents and Short-Term Investments	190.44M	63.26M	100.39M	255.76M	225.88M	248.80M
Total Debt	3.97B	4.62B	4.40B	5.05B	4.22B	3.87B
Total Liabilities	4.31B	4.96B	4.73B	5.44B	4.66B	4.25B
Stockholders Equity	3.25B	2.86B	3.08B	3.31B	3.74B	3.46B
Cash Flow
Free Cash Flow	41.21M	141.59M	226.52M	349.29M	189.63M	-291.91M
Operating Cash Flow	61.84M	164.66M	232.26M	369.50M	314.86M	302.03M
Investing Cash Flow	-118.88M	-250.54M	467.84M	-378.09M	-754.21M	-1.01B
Financing Cash Flow	157.56M	65.90M	-866.67M	97.45M	486.68M	796.09M

Hudson Pacific Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.16
• 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 12.16 is below the 20-day moving average (MA) of 13.20, below the 50-day MA of 15.67, and below the 200-day MA of 17.45, indicating a bearish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 31.82 is Neutral, neither overbought nor oversold. The STOCH value of 18.64 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%
PGRE	58 Neutral	$1.57B	-14.82	-3.14%	―	-5.29%	54.66%
DEA	58 Neutral	$1.01B	72.21	1.00%	9.19%	11.02%	-30.91%
PDM	55 Neutral	$1.06B	-15.07	-4.45%	5.86%	-1.23%	9.10%
BDN	54 Neutral	$524.39M	-2.80	-19.17%	17.55%	-5.52%	40.27%
ELME	52 Neutral	$1.53B	-11.33	-13.43%	4.15%	3.10%	-900.13%
HPP	46 Neutral	$719.38M	-0.72	-14.02%	―	-7.89%	-15.88%

Hudson Pacific Properties Corporate Events

Hudson Pacific Properties Appoints New Board Member

On December 2, 2025, Jonathan Glaser resigned from Hudson Pacific Properties‘ Board of Directors after 15 years, with no disagreements expressed. Jon Bortz, a seasoned executive with extensive experience in the hotel REIT sector, was appointed as his successor, bringing strategic vision and leadership to the company. Bortz’s appointment is expected to strengthen Hudson Pacific’s platform and contribute to long-term value creation for shareholders.

Hudson Pacific Announces Reverse Stock Split

On November 26, 2025, Hudson Pacific Properties announced a one-for-seven reverse stock split, effective December 1, 2025, which reduced its outstanding shares from approximately 379.5 million to 54.2 million. This move, along with amendments to decrease the par value and authorized shares, aims to streamline the company’s stock structure without affecting shareholders’ percentage ownership. Additionally, the company executed an amended partnership agreement for its operating partnership, aligning its unit structure with the reverse stock split and adjusting provisions for economic parity among units.

Hudson Pacific Properties Reports Strong Q3 2025 Results

On November 5, 2025, Hudson Pacific Properties announced its financial results for the third quarter of 2025, highlighting a strong operational performance with over 500,000 square feet of office leasing. The company reported positive office absorption and significant leasing activity in the San Francisco Bay Area, driven by AI and technology companies. Despite a decrease in total revenue compared to the previous year, Hudson Pacific improved its general and administrative expenses by 30% and strengthened its balance sheet with $1 billion in liquidity. The company also acquired a partner’s interest in a Seattle property and received entitlements for a mixed-use redevelopment project. These developments position Hudson Pacific to capitalize on the recovery of the West Coast office and studio markets.

Hudson Pacific Extends Credit Facility to $795 Million

On September 10, 2025, Hudson Pacific Properties announced an amendment and extension to its unsecured revolving credit facility, increasing permitted borrowings to $795 million with a maturity date of year-end 2026, and $462 million maturing by year-end 2029. This amendment, led by major financial institutions, maintains current interest rates and modifies financial covenants, enhancing the company’s capital structure to support strategic objectives.

Hudson Pacific Properties Appoints New Board Director

On September 11, 2025, Hudson Pacific Properties announced the resignation of Mark Linehan from its Board of Directors, with T. Ritson Ferguson appointed as his successor, effective immediately. Ferguson, with extensive experience in the REIT sector, is expected to bring valuable insights to the company as it continues to position itself as a leading owner-operator of West Coast office and studio real estate. This leadership change is anticipated to support the company’s strategic goals and enhance long-term shareholder value.