Hudson Pacific Properties (HPP) Q4 2025 earnings summary

Executive summary

• Achieved a transformative year in 2025 with $330 million in asset sales, $2 billion in capital transactions, and significant G&A and operational cost reductions.

• Delivered strongest leasing performance since 2019, signing over 2.2 million sq ft of office leases and achieving positive net absorption for two consecutive quarters.

• Completed Sunset Pier 94 Studios in Manhattan, with 90% leased within its first quarter.

• Entered 2026 with the lowest office expiration schedule in four years and a robust leasing pipeline of 2.3 million sq ft.

• Focused on lease-up and stabilization of office portfolio, elimination of Quixote's earnings drag, and disciplined capital allocation.

Financial highlights

• Total revenues for Q4 2025 were $256 million, up from $209.7 million year-over-year, driven by a lease termination fee from the Element LA sale.

• Net loss attributable to common stockholders was $277.9 million ($4.31/share) vs. $167.0 million ($8.28/share) in Q4 2024, impacted by non-cash, non-real-estate impairment of Quixote.

• FFO, excluding specified items, was $13.6 million ($0.21/share), compared to $15.5 million ($0.74/share) prior year.

• Same-store cash NOI was $84.8 million, down from $94.3 million, due to lower average office occupancy.

• AFFO was $(9.1) million ($(0.14)/share) vs. $3.6 million ($0.17/share) in Q4 2024, reflecting higher recurring capital expenditures and lower non-cash compensation.

Outlook and guidance

• Reinstated full-year 2026 FFO guidance at $0.96–$1.06 per diluted share, with sequential growth expected after Q1.

• Projecting annual average in-service office occupancy of 80%–82%, with year-end occupancy expected to exceed this range.

• Anticipating same-store property cash NOI growth of -1.75% to -0.75%, a significant improvement over 2025.

• Projected interest expense of $151–$161 million and G&A of $49–$55 million, representing substantial savings.

• No specified items included in the 2026 outlook; excludes impacts from future acquisitions, dispositions, or capital markets activity.