Hudson Pacific Properties (HPP) Q1 2026 earnings summary

Executive summary

• Achieved third consecutive quarter of occupancy gains, signing over 550,000 sq ft of office leases and maintaining strong studio performance in prime locations.

• General and administrative expenses declined 32% year-over-year, reflecting cost discipline.

• Total liquidity exceeded $930 million at quarter end, with no draws on the credit facility.

• Portfolio at March 31, 2026 included 13.9M sq ft of office, 1.7M sq ft of studio, and 3.7M sq ft of land for future development, with 45 sound stages and lease rights to 20 more.

• Raised full-year 2026 Core FFO outlook due to strong first quarter and operational streamlining.

Financial highlights

• Total revenues were $181.9 million, down from $198.5 million year-over-year, mainly due to asset sales and tenant move-outs.

• Net loss narrowed to $50.9 million ($0.82 per diluted share) from $80.3 million ($3.70 per diluted share) year-over-year.

• Core FFO increased to $16.5 million ($0.25 per diluted share), up from $12.9 million ($0.61 per diluted share) year-over-year.

• FFO attributable to common stock/unit holders was $18.0 million ($0.27 per diluted share), up from $3.1 million ($0.15 per diluted share) year-over-year.

• G&A expenses declined 32% to $12.6 million; cash and cash equivalents at quarter-end were $138.0 million.

Outlook and guidance

• Raised full-year Core FFO guidance to $1.10–$1.18 per diluted share, up from $0.96–$1.06, reflecting Q1 outperformance and reclassification of discontinued operations.

• Assumes average in-service office occupancy of 80–82% and same-store cash NOI decline of 0.75–1.75%.

• Outlook excludes potential future dispositions, acquisitions, or capital market activity.

• Management expects principal sources of liquidity to include cash on hand, operations, asset sales, equity offerings, and debt financings.