Hudson Pacific Properties (HPP) investor relations material

Executive summary

• Signed 533,708 sq. ft. of office leases; in-service occupancy rose for a fifth consecutive quarter to 85.6%, with YTD leasing of 2.4 million sq. ft., up 40% YoY.

• Same-store cash NOI grew 8.3% YoY to $85.2 million; Core FFO per diluted share rose 8% to $0.28.

• FY 2026 Core FFO guidance increased to $1.15–$1.21 per diluted share; pro forma share of debt fell 14% YoY after asset sales and note repurchases.

Financial highlights

• Q3 revenue was $180.9 million versus $186.6 million YoY, primarily reflecting asset dispositions, partly offset by improved office occupancy and studio production.

• Net loss was $218.1 million, or $3.38 per diluted share, versus $136.5 million, or $2.12; impairments and real estate sale losses drove the wider loss.

• Core FFO rose 11% to $18.6 million, or $0.28 per diluted share; reported FFO attributable to common stock/unit holders was $14.6 million versus $21.4 million.

• AFFO was $(5.1) million, or $(0.08) per diluted share, versus $12.3 million, primarily reflecting higher lease-up capital expenditures.

• Q3 NOI was $82.4 million, down 0.3% YoY; same-store cash NOI rose 8.3% to $85.2 million.

Outlook and guidance

• FY 2026 Core FFO guidance increased and narrowed to $1.15–$1.21 per diluted share from $1.12–$1.20.

• Guidance assumes average in-service office occupancy of 82%–84% and same-store cash NOI growth of 0%–1%; estimates reflect asset sales and Fourth & Traction's temporary removal for seismic work.

• Weil rent is excluded from the remaining 2026 outlook; no indication of stopped rent payments had been received.

• AFFO is expected to turn positive in 2H 2027 as free rent burns off, subject to lumpy leasing CapEx.

• Washington 1000, a 546,000-square-foot office project, was in lease-up, with stabilization estimated for Q4 2027.