Hudson Pacific Properties (HPP) Q2 2025 earnings summary

Executive summary

• Leased 1.2 million sq ft year-to-date, with 558,000 sq ft signed in Q2 2025 and a robust pipeline exceeding 2 million sq ft; portfolio included 40 office properties (13.4M sq ft), 4 studio properties (1.4M sq ft), and 3.2M sq ft of undeveloped land.

• Achieved $1 billion in liquidity after successful CMBS financing and $689.3M equity raise, used to repay revolving credit facility and support future cash flow growth.

• West Coast office recovery led by tech and AI, with San Francisco and Silicon Valley showing positive net absorption and occupancy gains; studio business confidence rising with 134 productions in active development or prep in Q2.

• Major property sales included Maxwell, Foothill Research Center, and 625 Second for a combined $97M; strategic asset sales continue, with further non-core dispositions in progress.

• Net loss for Q2 2025 was $87.8M, up 84.5% year-over-year, driven by lower NOI and higher G&A expenses.

Financial highlights

• Q2 2025 revenue was $190 million, down from $218 million year-over-year, mainly due to asset sales and lower office occupancy.

• Net loss attributable to common stockholders was $83.1M ($0.41/share), compared to $47.0M ($0.33/share) in Q2 2024.

• FFO (excluding specified items) was $8 million ($0.04/share) versus $24.5 million ($0.17/share) last year; FFO including specified items was negative $11.2M ($0.05/share).

• Same-store cash NOI was $87.1 million, down from $104.1 million year-over-year.

• NOI for Q2 2025 was $81.9M, down 21.8% year-over-year.

Outlook and guidance

• Q3 FFO per share expected between $0.01 and $0.05; full-year same-store cash NOI guidance adjusted to -11.5% to -12.5%.

• Full-year interest expense expected at $168–$178 million; G&A at $57.5–$63.5 million.

• Refinancing in process for $314.3M loan maturing December 2025; $462M of revolving credit extended through 2029.

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

• Principal liquidity sources include cash, operations, asset sales, equity, and debt financings.