Hudson Pacific Properties (HPP) Q4 2025 earnings summary

Executive summary

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

• Delivered the strongest leasing performance since 2019, signing over 2.2 million sq ft of office leases and driving occupancy gains across all major markets, with positive net absorption for two consecutive quarters.

• Completed Sunset Pier 94 Studios in Manhattan, delivered on time, under budget, and reached 90% occupancy in its first quarter.

• Reduced G&A and interest expenses by $26 million, and restructured Quixote for $25 million in annualized savings.

• Focused on lease-up and stabilization of office portfolio, with a clear path to FFO per share inflection in 2026.

Financial highlights

• Q4 total revenues were $256 million, up from $209.7 million year-over-year, aided 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.

• G&A expenses dropped 33% to $13 million; FFO excluding specified items was $13.6 million ($0.21/share) vs. $15.5 million ($0.74/share) prior year.

• 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.

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

Outlook and guidance

• Reinstated full-year 2026 FFO guidance at $0.96-$1.06 per share, with sequential growth expected after Q1, based on 80%-82% average in-service office occupancy and -1.75% to -0.75% same-store cash NOI growth.

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

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

• Interest expense projected at $151-$161 million and G&A at $49-$55 million, both down significantly from 2025.