Hudson Pacific Properties (HPP) AI Stock Analysis

• Market Cap: $668.92M
• Dividend Yield: N/A
• Average Volume (3M): 6.08M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• Revenue Growth: -7.89%
• EPS Growth: -15.88%
• Country: US
• Employees: 740
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.30
• Shares Outstanding: 379,497,220
• 10 Day Avg. Volume: 8,278,190
• 30 Day Avg. Volume: 6,079,995
• 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: 8.50
• Enterprise Value/Revenue: 7.24
• Enterprise Value/Gross Profit: 16.54
• Enterprise Value/Ebitda: 97.84
• 1Y Price Target: $2.81
• Price Target Upside: 68.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): -1.2
• Revenue Forecast (FY): $737.66M

• Rating: 45 Neutral
• Price Target: $2.00 ▲(19.76% Upside)

Hudson Pacific Properties' overall stock score is primarily impacted by its weak financial performance and valuation metrics, which indicate significant financial challenges and ongoing losses. The technical analysis further supports a bearish outlook. While the earnings call provided some positive insights into operational improvements, the overall sentiment remains mixed, contributing to a moderate score.

Positive Factors

Strong Office Leasing Activity

The robust leasing activity, particularly in tech-driven markets like San Francisco and Silicon Valley, indicates strong demand and market positioning, which can lead to stable and growing rental income over time.

Improved Studio Occupancy

Increased studio occupancy and shoot days suggest a recovery in the media sector, enhancing revenue potential and utilization of assets, which is crucial for long-term profitability.

Successful Capital Management

Strong liquidity and successful capital management provide financial flexibility, enabling the company to invest in growth opportunities and manage debt obligations effectively.

Negative Factors

Declining Revenue

The decline in revenue, driven by asset sales and lower office occupancy, reflects challenges in maintaining income levels, which could impact long-term financial stability and growth.

High Leverage

Significant leverage increases financial risk, potentially straining cash flow and limiting the company's ability to invest in growth or weather economic downturns.

Negative Profitability Margins

Negative profitability margins indicate operational inefficiencies and challenges in generating sufficient profit from revenue, which can hinder long-term financial health and shareholder value.

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: 1.67
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 1.67 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.47, and below the 200-day MA of 2.57, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 26.31 is Positive, neither overbought nor oversold. The STOCH value of 5.84 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	58 Neutral	$956.29M	68.36	1.00%	9.79%	11.02%	-30.91%
PDM	55 Neutral	$1.03B	―	-4.45%	6.24%	-1.23%	9.10%
ELME	54 Neutral	$1.50B	-11.07	-13.43%	4.28%	3.10%	-900.13%
BDN	54 Neutral	$574.91M	-3.07	-19.17%	15.32%	-5.52%	40.27%
PGRE	53 Neutral	$1.56B	―	-3.14%	―	-5.29%	54.66%
HPP	45 Neutral	$668.92M	―	-14.02%	―	-7.89%	-15.88%

Hudson Pacific Properties Corporate Events

Hudson Pacific Properties Reports Strong Leasing and Financial Flexibility

Hudson Pacific Properties, Inc. is a real estate investment trust specializing in providing comprehensive real estate solutions for tech and media tenants, primarily operating in the West Coast’s innovation hubs. The company recently announced its financial results for the third quarter of 2025, highlighting significant leasing activity and strategic financial maneuvers. Key highlights from the report include the leasing of over 500,000 square feet of office space in the third quarter, with a notable lease to an AI company in the Bay Area, and a total liquidity of $1 billion at the end of the quarter. The company also achieved a 30% reduction in general and administrative expenses compared to the previous year. Despite a decrease in total revenue to $186.6 million due to asset sales and lower office occupancy, Hudson Pacific reported an improvement in funds from operations (FFO) to $16.7 million, excluding specified items. The company also strengthened its balance sheet by refinancing debt and extending credit facilities. Looking ahead, Hudson Pacific’s management remains optimistic about capitalizing on the recovery of the West Coast office and studio markets, driven by demand from tech and media companies.

Hudson Pacific Properties’ Earnings Call: Mixed Sentiment Amidst Leasing Success

Hudson Pacific Properties’ recent earnings call revealed a mixed sentiment, highlighting positive trends in office leasing and financial stability amidst challenges in revenue and studio operations. The office segment showed resilience, benefiting from AI-driven demand, while the studio segment faced occupancy hurdles, contributing to an overall revenue decline.

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.

The most recent analyst rating on (HPP) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

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.

The most recent analyst rating on (HPP) stock is a Buy with a $3.10 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

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.

The most recent analyst rating on (HPP) stock is a Buy with a $3.10 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.