Hudson Pacific Properties (HPP) Q2 2026 earnings summary

Executive summary

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

• Occupancy increased 470 basis points sequentially to 82.5%, marking the fourth consecutive quarter of gains, and same-store NOI rose 7.5% year-over-year.

• Core FFO per share increased 30% year-over-year to $0.35, with Core FFO nearly tripling to $23.1 million from $8 million.

• Total liquidity stood at $876 million at quarter-end, with $81 million in cash and $795 million available on the credit facility.

• Leasing pipeline reloaded to 2.4 million sq ft, with 70% new leases and an average requirement size above 20,000 sq ft.

Financial highlights

• Total revenues were $188.3 million, slightly down from $190 million year-over-year due to asset dispositions, nearly offset by improved office occupancy.

• G&A expenses improved 11% to $12 million, reflecting ongoing cost-saving initiatives.

• FFO increased to $15.6 million ($0.24/share) from $(11.2) million ($(0.38)/share) year-over-year.

• AFFO improved to $(3.2) million ($(0.05)/share) from $(6.1) million ($(0.20)/share) year-over-year.

• Same-store cash NOI grew 7.5% to $90.2 million, driven by higher office and studio occupancy.

Outlook and guidance

• Raised full-year Core FFO guidance to $1.12-$1.20 per diluted share, up from $1.10-$1.18, reflecting second quarter outperformance and improved expectations for the second half.

• Third quarter expirations expected to impact occupancy and earnings, with a rebound anticipated in the fourth quarter.

• Guidance excludes impacts from new acquisitions, dispositions, or capital markets activity, and Quixote's stage and Atlanta operations.

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