Hudson Pacific Properties (HPP) Q2 2026 earnings summary

Executive summary

• Achieved record leasing with 1.3 million sq ft signed, including a 24-year, 891,000 sq ft lease with the City and County of San Francisco, providing long-term cash flow visibility.

• In-service office occupancy increased 470 basis points sequentially to 82.5%, marking the fourth consecutive quarter of gains.

• Core FFO per share increased 30% year-over-year to $0.35; same-store NOI rose 7.5% year-over-year, driven by improved office and studio performance.

• Studio business remained strong, with Hollywood stages 95.5% leased and in-service stages 74.6% leased.

• Total liquidity stood at $876 million at quarter-end, including $80.8 million in cash and $795 million undrawn credit.

Financial highlights

• Total revenues were $188.3 million, slightly down from $190 million year-over-year due to asset sales, offset by higher occupancy.

• Core FFO rose to $23.1 million ($0.35/share) from $8.0 million ($0.27/share) year-over-year.

• Net loss for Q2 2026 was $104.7 million, up 19.3% from $87.8 million in Q2 2025, mainly due to impairment losses and lease terminations.

• G&A expenses improved 11% to $12 million, reflecting ongoing cost-saving initiatives; prior year included non-recurring compensation expense.

• Interest expense decreased 20% year-over-year, saving $9.7 million; all debt is fixed or capped at a weighted average interest rate of 4.9%.

Outlook and guidance

• Raised full-year Core FFO guidance to $1.12-$1.20 per diluted share, up from $1.10-$1.18.

• Guidance reflects $0.01 outperformance in Q2 and improved expectations for the second half, with anticipated Q3 expirations impacting results before a Q4 rebound.

• Guidance excludes impacts from new acquisitions, dispositions, or capital markets activity.

• Assumes average in-service office occupancy of 80–82% and same-store cash NOI growth of (1.75)% to (0.75)% for 2026.

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