Hudson Pacific Properties, Inc. (HPP) Q3 2025 Earnings Call Transcript
Total Revenues $186.6 million compared to $200.4 million in the prior year, a decrease primarily resulting from asset sales and lower occupancy as the company continues working through its lease-up process.
G&A Expenses $13.7 million compared to $90.5 million in the prior year, representing a 30% reduction due to successful implementation of organizational efficiency measures.
FFO (Funds From Operations) $16.7 million or $0.04 per diluted share compared to $14.3 million or $0.10 per diluted share in the prior year, a 17% increase due to improved G&A, interest expense, and studio NOI, partially offset by lower office NOI.
Same-Store Cash NOI $89.3 million compared to $100 million in the prior year, mostly due to lower office occupancy.
Liquidity Position $1 billion, comprised of $190.4 million of unrestricted cash and cash equivalents and $795.3 million of undrawn credit facility capacity.
Trade with 70% Backtested Accuracy
Analyst Views on HPP
About HPP
About the author
Oversold Real Estate Stocks Present Investment Opportunities: HPP, MMI, SBAC
- HPP Stock Decline: Hudson Pacific Properties has an RSI of 25.2, with its stock falling approximately 20% over the past month; on January 9, BMO Capital downgraded its rating to Market Perform and cut the price target from $16 to $11, indicating significant market pressure on the company.
- MMI Steady Performance: Marcus & Millichap reported in-line earnings for Q3, despite a 6% drop in stock price over the past month and an RSI of 28.1; the CEO noted the company's strength in navigating complex market conditions, reflecting resilience in the industry.
- SBAC Rating Adjustment: SBA Communications has an RSI of 28.3, with a 5% decline in stock price over the past five days; Wells Fargo lowered its price target from $215 to $205, indicating cautious market sentiment regarding its future performance.
- Market Trend Analysis: Benzinga Pro's charting tool has identified trends in these oversold stocks, allowing investors to leverage this data to assess potential investment opportunities, particularly amid volatility in the real estate sector.
BMO Downgrades Multiple Companies' Ratings and Price Targets
- Rating Downgrade: BMO Capital analyst Juan Sanabria downgraded American Homes 4 Rent from Outperform to Market Perform while maintaining a price target of $37, with shares closing at $31.63 on Thursday, indicating market caution regarding its future performance.
- Price Target Reduction: Baird analyst Ben Kallo downgraded GE Vernova Inc from Outperform to Neutral and cut the price target from $816 to $649, reflecting concerns about its growth potential, as shares closed at $628.40 on Thursday.
- Declining Market Performance: BMO Capital analyst John Kim downgraded Hudson Pacific Properties Inc from Outperform to Market Perform, lowering the price target from $16 to $11, with shares closing at $10.08, suggesting weakened market confidence in its profitability.
- Ongoing Downgrades: Additionally, John Kim downgraded Equity Residential from Outperform to Market Perform, reducing the price target from $70 to $68, while shares closed at $62.87 on Thursday, indicating market caution regarding its future growth prospects.
BTIG Raises Hudson Pacific Price Target to $26
- Target Price Increase: BTIG raised Hudson Pacific Properties' price target from $4.75 to $26, with analyst Thomas Catherwood maintaining a Buy rating, indicating strong confidence in the company's future growth prospects.
- Market Performance: Hudson Pacific shares closed at $10.83 on Wednesday, and despite the significant target price increase, the current stock price remains below the target, suggesting a market undervaluation of its potential.
- NRx Pharmaceuticals Target Adjustment: Ascendiant Capital increased the price target for NRx Pharmaceuticals from $47 to $48, with analyst Edward Woo maintaining a Buy rating, reflecting optimism about the company's product outlook.
- Ulta Beauty Target Upgrade: Argus Research raised Ulta Beauty's price target from $650 to $700, with analyst Deborah Ciervo maintaining a Buy rating, indicating positive expectations for its market performance.
Hudson Pacific Declares $0.296875 Dividend for Q4 2025 on Series C Preferred Stock
- Dividend Announcement: Hudson Pacific's Board of Directors has declared a Q4 2025 dividend of $0.296875 per share on its 4.750% Series C preferred stock, reflecting the company's ongoing commitment to shareholder returns.
- Payment Schedule: This dividend will be paid on December 29, 2025, to shareholders of record on December 19, 2025, ensuring timely returns for investors and enhancing confidence in the company's financial stability.
- Market Positioning: Hudson Pacific focuses on providing end-to-end real estate solutions for tech and media tenants, leveraging its unique market positioning and deep strategic relationships to maintain competitiveness in rapidly growing sectors.
- Future Outlook: The forward-looking statements in the announcement indicate that despite uncertainties, Hudson Pacific remains committed to achieving long-term growth, reflecting confidence in future market opportunities.
Hudson Pacific Properties (HPP) Price Target Raised by 519.67% to $19.86
Price Target Revision: The average one-year price target for Hudson Pacific Properties (NYSE:HPP) has been revised to $19.86 per share, reflecting a significant increase of 519.67% from the previous estimate of $3.20.
Fund Sentiment: There are currently 476 funds reporting positions in HPP, with a 7.21% increase in ownership over the last quarter, and a bullish outlook indicated by a put/call ratio of 0.37.
Shareholder Activity: Major shareholders like Cohen & Steers and Balyasny Asset Management have decreased their holdings, while Vanguard Real Estate Index Fund has significantly increased its stake by 196.02%.
Fintel Overview: Fintel provides comprehensive investing research, including fundamentals, analyst reports, and fund sentiment, aimed at individual investors and small hedge funds.
Hudson Pacific divests Element LA for $231 million, updates Q4 FFO forecast to $0.15–$0.25
Successful Divestment: Hudson Pacific Properties (HPP) divested the Element LA office campus for $231 million, which included a $150 million property sale and an $81 million lease termination payment, allowing them to repay $206 million in CMBS debt.
Revised Q4 FFO Outlook: HPP revised its Q4 2025 Funds From Operations (FFO) outlook to $0.15–$0.25 per diluted share, reflecting the impact of the recent asset sale and a 1-for-7 reverse stock split effective December 1, 2025.
Oversold Real Estate Stocks Present Investment Opportunities: HPP, MMI, SBAC
- HPP Stock Decline: Hudson Pacific Properties has an RSI of 25.2, with its stock falling approximately 20% over the past month; on January 9, BMO Capital downgraded its rating to Market Perform and cut the price target from $16 to $11, indicating significant market pressure on the company.
- MMI Steady Performance: Marcus & Millichap reported in-line earnings for Q3, despite a 6% drop in stock price over the past month and an RSI of 28.1; the CEO noted the company's strength in navigating complex market conditions, reflecting resilience in the industry.
- SBAC Rating Adjustment: SBA Communications has an RSI of 28.3, with a 5% decline in stock price over the past five days; Wells Fargo lowered its price target from $215 to $205, indicating cautious market sentiment regarding its future performance.
- Market Trend Analysis: Benzinga Pro's charting tool has identified trends in these oversold stocks, allowing investors to leverage this data to assess potential investment opportunities, particularly amid volatility in the real estate sector.
BMO Downgrades Multiple Companies' Ratings and Price Targets
- Rating Downgrade: BMO Capital analyst Juan Sanabria downgraded American Homes 4 Rent from Outperform to Market Perform while maintaining a price target of $37, with shares closing at $31.63 on Thursday, indicating market caution regarding its future performance.
- Price Target Reduction: Baird analyst Ben Kallo downgraded GE Vernova Inc from Outperform to Neutral and cut the price target from $816 to $649, reflecting concerns about its growth potential, as shares closed at $628.40 on Thursday.
- Declining Market Performance: BMO Capital analyst John Kim downgraded Hudson Pacific Properties Inc from Outperform to Market Perform, lowering the price target from $16 to $11, with shares closing at $10.08, suggesting weakened market confidence in its profitability.
- Ongoing Downgrades: Additionally, John Kim downgraded Equity Residential from Outperform to Market Perform, reducing the price target from $70 to $68, while shares closed at $62.87 on Thursday, indicating market caution regarding its future growth prospects.
BTIG Raises Hudson Pacific Price Target to $26
- Target Price Increase: BTIG raised Hudson Pacific Properties' price target from $4.75 to $26, with analyst Thomas Catherwood maintaining a Buy rating, indicating strong confidence in the company's future growth prospects.
- Market Performance: Hudson Pacific shares closed at $10.83 on Wednesday, and despite the significant target price increase, the current stock price remains below the target, suggesting a market undervaluation of its potential.
- NRx Pharmaceuticals Target Adjustment: Ascendiant Capital increased the price target for NRx Pharmaceuticals from $47 to $48, with analyst Edward Woo maintaining a Buy rating, reflecting optimism about the company's product outlook.
- Ulta Beauty Target Upgrade: Argus Research raised Ulta Beauty's price target from $650 to $700, with analyst Deborah Ciervo maintaining a Buy rating, indicating positive expectations for its market performance.
Hudson Pacific Declares $0.296875 Dividend for Q4 2025 on Series C Preferred Stock
- Dividend Announcement: Hudson Pacific's Board of Directors has declared a Q4 2025 dividend of $0.296875 per share on its 4.750% Series C preferred stock, reflecting the company's ongoing commitment to shareholder returns.
- Payment Schedule: This dividend will be paid on December 29, 2025, to shareholders of record on December 19, 2025, ensuring timely returns for investors and enhancing confidence in the company's financial stability.
- Market Positioning: Hudson Pacific focuses on providing end-to-end real estate solutions for tech and media tenants, leveraging its unique market positioning and deep strategic relationships to maintain competitiveness in rapidly growing sectors.
- Future Outlook: The forward-looking statements in the announcement indicate that despite uncertainties, Hudson Pacific remains committed to achieving long-term growth, reflecting confidence in future market opportunities.
Hudson Pacific Properties (HPP) Price Target Raised by 519.67% to $19.86
Price Target Revision: The average one-year price target for Hudson Pacific Properties (NYSE:HPP) has been revised to $19.86 per share, reflecting a significant increase of 519.67% from the previous estimate of $3.20.
Fund Sentiment: There are currently 476 funds reporting positions in HPP, with a 7.21% increase in ownership over the last quarter, and a bullish outlook indicated by a put/call ratio of 0.37.
Shareholder Activity: Major shareholders like Cohen & Steers and Balyasny Asset Management have decreased their holdings, while Vanguard Real Estate Index Fund has significantly increased its stake by 196.02%.
Fintel Overview: Fintel provides comprehensive investing research, including fundamentals, analyst reports, and fund sentiment, aimed at individual investors and small hedge funds.
Hudson Pacific divests Element LA for $231 million, updates Q4 FFO forecast to $0.15–$0.25
Successful Divestment: Hudson Pacific Properties (HPP) divested the Element LA office campus for $231 million, which included a $150 million property sale and an $81 million lease termination payment, allowing them to repay $206 million in CMBS debt.
Revised Q4 FFO Outlook: HPP revised its Q4 2025 Funds From Operations (FFO) outlook to $0.15–$0.25 per diluted share, reflecting the impact of the recent asset sale and a 1-for-7 reverse stock split effective December 1, 2025.
