Hudson Pacific Properties (HPP) investor relations material

Strategic priorities and financial reset

• Strengthened balance sheet in 2025 with $330M in asset sales and $2B in capital transactions, reducing net debt by 22% and nearly doubling liquidity to $934M.

• Achieved $26M in G&A and interest savings, and $25M in annualized reductions from Quixote investment.

• Accelerated leasing momentum with 2.2M sq ft signed in 2023, second-strongest since 2019, and 518,000 sq ft in Q4.

• Sunset Studios over 86% leased; new Sunset Pier 94 in NY fully leased at launch.

• 2026 focus on execution: accelerating occupancy growth, unlocking embedded NOI, and disciplined capital recycling.

Leasing, occupancy, and market outlook

• Pipeline of 2.3M sq ft, up 15% YoY, with only 1M sq ft expiring in 2026; aiming for 80%-82% average occupancy by year-end.

• Sequential FFO growth expected as lease-up converts to cash flow; no non-recurring items in guidance.

• Renewal rates expected to rise to mid-60s%; 500,000 sq ft leasing per quarter supports occupancy targets.

• 75% of pipeline is new leases, 25% renewals; 30%-35% of pipeline is net growth, with a third new to market.

• Tech and AI tenants comprise 50% and a third of the pipeline, respectively, with growth strongest in Bay Area and Seattle.

Studio business and Quixote update

• Sunset platform nearly 100% leased with high-quality tenants; Quixote business targeted to reach break-even by year-end.

• Quixote impairment aligns operating results with FFO; multiple alternatives being considered for the asset.

• Closed underperforming offices in Albuquerque and Louisiana, reducing expenses.

• Tax credits in LA and NY support production flow; show counts at all-time lows but expected to improve.

• Paramount’s M&A activity seen as less disruptive than Netflix; office lease with Netflix expires in 2031.