Hudson Pacific Properties (NYSE:HPP) Posts Quarterly Earnings Results, Misses Expectations By $0.90 EPS

Hudson Pacific Properties (NYSE:HPP) announced its quarterly earnings results on Wednesday. The real estate investment trust reported ($1.62) EPS for the quarter, missing the consensus estimate of ($0.72) by ($0.90), FiscalAI reports. The firm had revenue of $188.30 million during the quarter, compared to the consensus estimate of $181.80 million. Hudson Pacific Properties had a negative net margin of 70.04% and a negative return on equity of 20.76%. Hudson Pacific Properties updated its FY 2026 guidance to 1.120-1.200 EPS.

Here are the key takeaways from Hudson Pacific Properties’ conference call:

• Record office leasing lifted occupancy and earnings: Hudson Pacific signed 1.3 million square feet of office leases, increased occupancy 470 basis points to 82.5%, and nearly tripled Core FFO to $23.1 million, or $0.35 per diluted share.
• Large San Francisco government lease improves visibility: The 891,000-square-foot, 24-year lease with the City and County of San Francisco provides significant long-term cash-flow visibility and contributed to stronger net effective rents.
• Management raised 2026 Core FFO guidance to $1.12–$1.20 per diluted share, citing second-quarter outperformance and slightly better expectations for the second half, while maintaining $876 million of liquidity.
• Quixote restructuring is materially reducing losses: Annualized cash NOI improved by approximately $14.3 million from 2024 levels, narrowing the fleet business’s loss to roughly $4 million and bringing it closer to break-even.
• Near-term results face pressure from lease expirations and financing uncertainty: Two large expirations are expected to reduce occupancy and earnings in the third quarter before a projected fourth-quarter rebound, while the Hollywood Media portfolio loan has transferred to special servicing pending finalization of a longer-term extension.

Hudson Pacific Properties Stock Performance

HPP traded up $0.90 during trading on Friday, hitting $14.34. The stock had a trading volume of 1,055,468 shares, compared to its average volume of 1,222,905. The firm has a market cap of $777.96 million, a PE ratio of -1.62, a P/E/G ratio of 1.11 and a beta of 1.90. The company has a current ratio of 1.11, a quick ratio of 1.65 and a debt-to-equity ratio of 1.33. Hudson Pacific Properties has a 12 month low of $5.26 and a 12 month high of $21.70. The company has a 50 day simple moving average of $14.76 and a 200-day simple moving average of $10.38.

Hedge Funds Weigh In On Hudson Pacific Properties

A number of institutional investors have recently made changes to their positions in the business. Balyasny Asset Management L.P. boosted its holdings in Hudson Pacific Properties by 122.4% in the 2nd quarter. Balyasny Asset Management L.P. now owns 15,712,981 shares of the real estate investment trust’s stock valued at $43,054,000 after purchasing an additional 8,646,463 shares during the period. Conversant Capital LLC grew its position in Hudson Pacific Properties by 293.6% in the 2nd quarter. Conversant Capital LLC now owns 10,700,000 shares of the real estate investment trust’s stock worth $29,318,000 after purchasing an additional 7,981,580 shares during the last quarter. Sei Investments Co. increased its holdings in shares of Hudson Pacific Properties by 18,343.2% during the 2nd quarter. Sei Investments Co. now owns 5,571,688 shares of the real estate investment trust’s stock worth $15,266,000 after purchasing an additional 5,541,478 shares during the period. UBS Group AG increased its holdings in shares of Hudson Pacific Properties by 657.0% during the 3rd quarter. UBS Group AG now owns 5,617,697 shares of the real estate investment trust’s stock worth $15,505,000 after purchasing an additional 4,875,549 shares during the period. Finally, Rush Island Management LP acquired a new position in shares of Hudson Pacific Properties during the second quarter valued at about $12,409,000. 97.58% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have commented on the stock. Wall Street Zen raised shares of Hudson Pacific Properties from a “sell” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Hudson Pacific Properties in a research note on Friday, May 29th. Zacks Research cut shares of Hudson Pacific Properties from a “strong-buy” rating to a “hold” rating in a report on Friday, July 10th. Mizuho increased their target price on shares of Hudson Pacific Properties from $15.00 to $17.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 21st. Finally, Piper Sandler upgraded Hudson Pacific Properties from a “neutral” rating to an “overweight” rating and raised their target price for the company from $16.00 to $18.00 in a report on Thursday. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, Hudson Pacific Properties has a consensus rating of “Hold” and a consensus price target of $15.07.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties (NYSE: HPP) is a self-managed real estate investment trust focused on the acquisition, development and management of high-quality office and studio properties. The company’s portfolio spans strategic West Coast markets in the United States and key markets in Canada, providing space for technology, media and creative companies as well as major film and television producers. As an owner and operator of both traditional office buildings and specialized production facilities, Hudson Pacific seeks to deliver stable income through long-term leases and strategic property enhancements.

In its office segment, Hudson Pacific targets markets with strong job growth and limited supply, including Los Angeles, Silicon Valley, San Diego and Seattle, as well as Vancouver, British Columbia.