Hudson Pacific Properties (HPP) AI Stock Analysis

• Market Cap: $927.89M
• Dividend Yield: 3.7%
• Average Volume (3M): 9.05M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: -9.39%
• EPS Growth: -72.30%
• Country: US
• Employees: 740
• Sector: Real Estate
• Sector Strength: 56
• Industry: REIT - Office
• EPS (TTM): -0.53
• Shares Outstanding: 338,732,700
• 10 Day Avg. Volume: 21,492,731
• 30 Day Avg. Volume: 9,054,976
• PEG Ratio: -0.15
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.53
• Enterprise Value/Market Cap: 7.09
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 20.86
• Enterprise Value/Ebitda: 7.50
• 1Y Price Target: $3.25
• Price Target Upside: 21.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 52 Neutral
• Price Target: $3.00 ▲(11.94%Upside)

Hudson Pacific Properties faces significant financial challenges, with declining revenues and high leverage. While technical indicators suggest bearish trends, strategic corporate actions and strong leasing activity offer some optimism. The valuation reflects current profitability struggles, dampening the overall outlook despite potential liquidity improvements.

Positive Factors

Balance Sheet Stability

Management has achieved both balance sheet and earnings stability well ahead of expectations.

Debt Market Performance

The debt markets recognized the balance sheet enhancement as yield-to-maturity for the company's 2030 unsecured bonds improved significantly.

Leasing Pipeline Expansion

HPP’s leasing pipeline has expanded significantly, with a substantial amount of deals under letters of intent or in negotiations.

Negative Factors

Equity Dilution Impact

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

NAV Reduction

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

Valuation Concerns

HPP has a discounted valuation given declining earnings, which may persist due to the slower-than-expected return of Hollywood production and slow West Coast office market recovery.

Hudson Pacific Properties Business Overview & Revenue Model

Company Description

Hudson Pacific Properties, Inc. (HPP) is a real estate investment trust (REIT) that specializes in owning, operating, and developing office and studio properties. With a strategic focus on the West Coast of the United States, particularly in key markets such as Los Angeles, San Francisco, Seattle, and Vancouver, the company provides high-quality workspace solutions for a variety of clients, including tech companies, media firms, and other corporate tenants. HPP also owns and operates studio properties, catering to the entertainment industry's production needs.

How the Company Makes Money

Hudson Pacific Properties generates revenue primarily through rental income from its portfolio of office and studio properties. The company's key revenue streams include long-term leases with tenants in its office buildings and short-term leases for production spaces in its studio properties. By maintaining high occupancy rates and strategically managing leases, HPP ensures consistent cash flow. Additionally, the company seeks to enhance its earnings through property development and redevelopment projects, which can lead to increased rental rates and property values. Significant partnerships with major tech and media companies further bolster its revenue potential by securing stable, long-term tenancy agreements.

Hudson Pacific Properties Financial Statement Overview

Summary

Hudson Pacific Properties faces declining revenues and profitability issues, as reflected in low income statement and balance sheet scores. High leverage and inconsistent cash flow growth highlight financial risks despite stable operating cash flow.

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	-343.34M	-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	42.00M	65.90M	-866.67M	97.45M	486.68M	796.09M

Hudson Pacific Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 2.68 is above the 20-day moving average (MA) of 2.48, above the 50-day MA of 2.28, and below the 200-day MA of 3.22, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 63.91 is Neutral, neither overbought nor oversold. The STOCH value of 32.22 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	64 Neutral	$216.72M	―	-2.51%	7.45%	-4.92%	-128.59%
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.72%	-24.75%
ONL	55 Neutral	$127.00M	―	-10.71%	3.54%	-18.92%	-15.81%
BDN	53 Neutral	$737.23M	―	-18.11%	14.22%	-2.22%	1.51%
HPP	52 Neutral	$927.89M	―	-12.23%	3.70%	-9.39%	-72.30%
PDM	52 Neutral	$905.69M	―	-3.79%	6.92%	-6.23%	18.07%
NYC	47 Neutral	$32.93M	―	-96.16%	―	-6.36%	-26.04%

Hudson Pacific Properties Corporate Events

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.

The most recent analyst rating on (HPP) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

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.

The most recent analyst rating on (HPP) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

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.

The most recent analyst rating on (HPP) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

Hudson Pacific Properties Approves Incentive Award Plan

On May 14, 2025, Hudson Pacific Properties, Inc. held its annual meeting where stockholders approved the Amended and Restated 2010 Incentive Award Plan, which increases the shares available for issuance and extends the award grant period until 2035. Additionally, the meeting saw the election of ten directors, the ratification of Ernst & Young LLP as the independent auditor for 2025, and the disapproval of the executive compensation advisory resolution.

The most recent analyst rating on (HPP) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Hudson Pacific Properties stock, see the HPP Stock Forecast page.

Hudson Pacific Properties Reports Strong Q1 2025 Leasing

Hudson Pacific Properties reported its financial results for the first quarter of 2025, highlighting a strong leasing performance with 630,000 square feet of leases signed, and a liquidity position of $839 million. Despite a net loss of $74.7 million, the company is optimistic about its future, citing a robust leasing pipeline and potential benefits from venture capital flows and government support for studios. The company is actively managing its portfolio through asset sales and debt reduction to strengthen its financial position.

Hudson Pacific Properties Secures $475M CMBS Financing

On March 28, 2025, Hudson Pacific Properties completed a $475 million commercial mortgage-backed securities (CMBS) financing for a portfolio of six office properties. The financing, secured by properties including 11601 Wilshire and Element LA, was facilitated by Goldman Sachs, Morgan Stanley, and Wells Fargo. The proceeds were used to repay a $168 million loan and amounts on the company’s credit facility, enhancing liquidity and financial flexibility. This strategic move, along with recent asset sales, positions Hudson Pacific at a positive inflection point in addressing future maturities, with approximately $815 million in liquidity following the transaction.