Hudson Pacific Properties (HPP) Citi’s Miami Global Property CEO Conference 2026 summary

Strategic and financial positioning

• Strengthened balance sheet in 2025 with $330M in asset sales, $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 in Quixote investment.

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

• Studio business over 86% leased in Hollywood and fully leased at new Sunset Pier 94 in New York.

• Targeting $200M–$300M in FFO-accretive asset sales in 2026 to further deleverage.

Operational outlook and growth drivers

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

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

• Quixote business targeted to reach break-even by year-end through operational improvements and alternatives.

• 95% execution rate on late-stage LOIs; 75% of pipeline is new leases, 25% renewals.

• 30–35% of pipeline is net growth, with about a third new to market; tech and AI tenants comprise a growing share.

Market trends and sector dynamics

• West Coast office fundamentals improving, with strong absorption in San Francisco and Silicon Valley.

• AI growth is a major catalyst in the Bay Area and Seattle, with tech representing 50% of the leasing pipeline and AI about a third of that.

• Average lease terms and lease sizes have increased year-over-year for three consecutive years.

• Los Angeles market lags due to political and business climate, but upcoming events (FIFA, Super Bowl, Olympics) expected to drive capital and demand.

• Buyers now more interested in vacant assets for higher IRR, especially in the Bay Area; Culver City asset attracting strong interest.