Hudson Pacific Properties (HPP)
NYSE:HPP
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Hudson Pacific Properties
(NYSE:HPP)
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Rating:46Neutral
Price Target:
$6.00
▲(2.04% Upside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by materially weak profitability and a bearish technical setup (price below key moving averages with negative MACD). Offsetting factors include meaningful balance-sheet de-levering and resilient cash generation, while the latest earnings call provides constructive 2026 guidance and liquidity progress but still flags ongoing NOI pressure and refinancing/execution risks.
Positive Factors
Balance-sheet Strength
Material deleveraging and a near-$1B liquidity buffer materially reduce refinancing pressure over the next 6–12 months. This gives management runway to execute leasing, targeted dispositions and cost saves without immediate forced asset sales, improving execution optionality.
Negative Factors
Weak Profitability
Persistently negative GAAP profitability and a year with negative EBITDA reflect structural margin pressure across the portfolio. Until occupancy and rent spreads recover meaningfully, earnings volatility may persist and constrain retained capital for growth or distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet Strength
Material deleveraging and a near-$1B liquidity buffer materially reduce refinancing pressure over the next 6–12 months. This gives management runway to execute leasing, targeted dispositions and cost saves without immediate forced asset sales, improving execution optionality.
Read all positive factors
Hudson Pacific Properties (HPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$323.09M
Dividend YieldN/A
Average Volume (3M)1.25M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth-7.89%
EPS Growth-15.88%
CountryUS
Employees740
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-4.31
Shares Outstanding54,242,023
10 Day Avg. Volume1,500,784
30 Day Avg. Volume1,249,031
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.16
Price to Sales (P/S)0.58
P/FCF Ratio4.89
Enterprise Value/Market Cap12.26
Enterprise Value/Revenue4.76
Enterprise Value/Gross Profit-11.31
Enterprise Value/Ebitda-79.44
Forecast
1Y Price Target
$8.79Price Target Upside49.49% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)-3.54
Revenue Forecast (FY)$749.62M
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,...
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...
Hudson Pacific Properties Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Neutral
The call presents a mix of meaningful financial and operational progress alongside material legacy and near-term challenges. Highlights include a materially strengthened balance sheet (cash up, revolver capacity, total liquidity $934M), successful capital transactions (~$2.0B) and clear leasing momentum (2.3M sq ft pipeline, tours +50% y/y) with reinstated FFO guidance for 2026. Offsetting these positives are a large noncash Quixote impairment and related specified charges ($213.6M), a year-over-year decline in same-store cash NOI (~10%), modest FFO ex-items ($0.21/sh) relative to the prior year, and refinancing/maturity risk on a media loan due in August 2026. Management’s plan (lease-up, cost reductions, targeted asset sales and elimination of Quixote’s drag) outlines a credible path to sequential FFO improvement, but near-term execution and the resolution of studio-related uncertainty remain key risks.Positive Updates
Balance Sheet Strengthening and Liquidity Expansion
Completed ~$2.0 billion of capital transactions and ~$330 million of strategic asset sales in 2025, doubled cash to $138 million, increased undrawn revolver capacity to $795 million, and reported total liquidity of $934 million. Net debt reduced ~22% and debt to undepreciated book value improved ~680 basis points to 31.9%.
Negative Updates
Large Noncash Charges and Quixote Impairment
Specified items in Q4 totaled $213.6 million (or $3.27 per diluted share), driven primarily by a noncash impairment related to Quixote and the Element LA lease termination fee. This materially depressed GAAP results and investor-visible earnings in the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Balance Sheet Strengthening and Liquidity Expansion
Completed ~$2.0 billion of capital transactions and ~$330 million of strategic asset sales in 2025, doubled cash to $138 million, increased undrawn revolver capacity to $795 million, and reported total liquidity of $934 million. Net debt reduced ~22% and debt to undepreciated book value improved ~680 basis points to 31.9%.
Read all positive updates
Company Guidance
Hudson Pacific reinstated full‑year 2026 FFO guidance of $0.96–$1.06 per diluted share, expects annual average in‑service office occupancy of 80%–82% (with year‑end above that range and only ~1.0M sq ft expiring in 2026), and projects same‑store cash NOI growth of −1.75% to −0.75%; interest expense is forecast at $151M–$161M and G&A at $49M–$55M (midpoint savings vs. 2025 of ~$15M and ~$6M, respectively). The outlook assumes modest Quixote NOI improvement (Q4 noncash impairment yields about $23M of annual depreciation savings at midpoint and Quixote has locked in ~$25M of annualized expense savings to date), total liquidity of ~$934M (cash $138M + $795M revolver), 2026 disposition target of $200M–$300M, and slightly lower FFO in Q1 followed by steady sequential growth with an FFO inflection beginning in Q2.Hudson Pacific Properties Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
56
Neutral
| 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
Negative
5.88
Price Trends
6.73
Negative
9.11
Negative
13.78
Negative
Market Momentum
-0.27
Negative
44.42
Neutral
64.74
Neutral
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 5.88 is below the 20-day moving average (MA) of 5.96, below the 50-day MA of 6.73, and below the 200-day MA of 13.78, indicating a bearish trend. The MACD of -0.27 indicates Negative momentum. The RSI at 44.42 is Neutral, neither overbought nor oversold. The STOCH value of 64.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HPP.
Hudson Pacific Properties Risk Analysis
Hudson Pacific Properties disclosed 55 risk factors in its most recent earnings report. Hudson Pacific Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hudson Pacific Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $1.05B | 73.21 | 0.98% | 9.58% | 11.02% | -30.91% | |
51 Neutral | $842.63M | -6.00 | -4.45% | 6.09% | -1.23% | 9.10% | |
51 Neutral | $461.70M | -2.82 | -20.40% | 17.55% | -5.52% | 40.27% | |
46 Neutral | $323.09M | -0.88 | -17.84% | ― | -7.89% | -15.88% | |
46 Neutral | $185.71M | -9.94 | -18.93% | 4.14% | 3.10% | -900.13% |
* Real Estate Sector Average
HPP
Hudson Pacific Properties
5.88
-9.10
-60.75%
ELME
Elme Communities
2.09
-0.15
-6.57%
PDM
Piedmont Office
6.74
0.61
9.95%
BDN
Brandywine Realty
2.65
-0.47
-15.15%
DEA
Easterly Government Properties
22.74
3.80
20.04%
Hudson Pacific Properties Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Hudson Pacific Highlights Breakthrough Year in Q4 2025 Results
Neutral
Feb 26, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.