UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number: 001-34789 (Hudson Pacific Properties, Inc.) Commiss ...

Core Insights - Hudson Pacific Properties (HPP) reported a revenue of $190 million for Q2 2025, reflecting a year-over-year decline of 12.8% and an EPS of $0.04, compared to -$0.33 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $196.56 million by 3.33%, while the EPS exceeded the consensus estimate of $0.03 by 33.33% [1] Financial Performance Metrics - Office Rental revenues were $150.53 million, below the estimated $153.89 million, marking a 12.8% decline year-over-year [4] - Office Service and other revenues were reported at $5.3 million, slightly below the $5.41 million estimate, showing a significant year-over-year increase of 53.9% [4] - Total Studio revenues were $34.17 million, under the estimated $38.87 million, representing an 18.6% decline year-over-year [4] - Studio Service and other revenues were $20.28 million, compared to the $25.67 million estimate, indicating a year-over-year decrease of 26.3% [4] - Total Office revenues were $155.83 million, below the estimated $159.3 million, reflecting an 11.5% decline year-over-year [4] - Studio Rental revenues were $13.89 million, slightly above the estimated $13.2 million, showing a year-over-year decline of 3.8% [4] - The diluted net earnings per share were reported at -$0.41, compared to the average estimate of -$0.24 from three analysts [4] Stock Performance - Shares of Hudson Pacific have decreased by 10.7% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Group 1 - Hudson Pacific Properties (HPP) reported quarterly funds from operations (FFO) of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.03 per share, but down from $0.17 per share a year ago, representing an FFO surprise of +33.33% [1] - The company posted revenues of $190 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 3.33%, compared to year-ago revenues of $218 million [2] - Hudson Pacific has surpassed consensus FFO estimates three times over the last four quarters, but has only topped consensus revenue estimates once in the same period [2] Group 2 - The stock has underperformed, losing about 20.5% since the beginning of the year, while the S&P 500 has gained 7.6% [3] - The current consensus FFO estimate for the coming quarter is $0.03 on revenues of $199.86 million, and for the current fiscal year, it is $0.17 on revenues of $795.74 million [7] - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other sector is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The second quarter revenue was $190 million, down from $218 million in the same quarter last year, primarily due to asset sales and lower office occupancy [19][20] - General and administrative (G&A) expenses improved significantly to $13.5 million from $20.7 million year-over-year, and $80.5 million in the first quarter of this year, marking a 3527% improvement [19][20] - Funds from operations (FFO) excluding specified items was $8 million or $0.04 per diluted share, compared to $24.5 million or $0.17 per diluted share in the same quarter last year [19][20] Business Line Data and Key Metrics Changes - Office leasing activity resulted in 1.2 million square feet of leases signed year-to-date, with 558,000 square feet signed in the quarter, 60% of which were new leases [5][12] - Studio revenue increased by 3% to $34.2 million due to additional studio occupancy, while studio expenses decreased by 11% to $36.6 million [16] - The trailing twelve-month net effective rents were 2% lower compared to the prior year and 11% lower versus pre-pandemic levels [13] Market Data and Key Metrics Changes - The West Coast office recovery is being driven by tech and AI companies, with San Francisco experiencing the largest quarterly occupancy increase in seven years [6][7] - In Silicon Valley, over 1 million square feet of positive net absorption was driven by the tech sector, with AI job postings increasing significantly [7][8] - The Bay Area currently hosts 60% of AI's footprint, indicating strong demand for office space in this sector [8] Company Strategy and Development Direction - The company is focused on enhancing its cost profile and has executed operational enhancements, asset sales, and capital transactions to drive future cash flow growth [6][11] - The strategic pursuit of non-core asset dispositions continues, with the sale of 625 Second for $28 million completed in the second quarter [11] - The company anticipates a stable and growing office occupancy due to lower expirations and increased demand [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of office occupancy, projecting a low to high 8 handle by year-end 2026 [31] - The company expects to see increased allocation activity in the studio segment due to the California Film and Television Tax Credit [10] - Management noted that the balance sheet is in a strong position, allowing for a focus on leasing and operational improvements [34] Other Important Information - The company has over $1 billion in liquidity, including $236 million in unrestricted cash and $775 million in undrawn capacity under its credit facility [21] - The outlook for the third quarter expects FFO per diluted share to range from $0.01 to $0.05, with gross FFO expected to increase due to the recent equity offering [22][23] Q&A Session Summary Question: Concerns about future tenant move-outs - Management confirmed there are no significant issues with any tenant that would change the leasing dynamics [26][28] Question: Pace of occupancy recovery - Management indicated a comfortable projection for occupancy recovery, aiming for a low to high 8 handle by year-end 2026 [31] Question: Focus on leasing versus balance sheet - Management stated that the focus has shifted to leasing and occupancy growth, with no immediate major steps needed on the balance sheet [34] Question: Studio business and lease terminations - Management explained that lease terminations were part of cost-cutting efforts, with significant reductions in expenses achieved [36] Question: Revenue recovery in the studio segment - Management projected potential recovery in studio revenue, aiming for a breakeven point with increased show counts [44] Question: Leasing environment and activity levels - Management confirmed that leasing activity has picked up, surpassing previous quarterly averages [53][54] Question: Guidance for third quarter - Management indicated that studio business activity will be a key variable affecting guidance for the third quarter [62][64]

Financial Performance - Total revenues decreased to $190 million from $218 million, primarily due to asset sales and lower office occupancy[7, 13] - Net loss attributable to common stockholders was $(83149) thousand, or $(041) per diluted share, compared to a net loss of $(47027) thousand, or $(033) per diluted share[7, 13] - FFO (excluding specified items) was $8 million, or $004 per diluted share, compared to $245 million, or $017 per diluted share[7, 13] - AFFO was $(61) million, or $(003) per diluted share, compared to $242 million, or $017 per diluted share[7, 13] - Same-store cash NOI decreased to $87096 thousand from $104120 thousand, primarily due to lower office occupancy[7, 13] Portfolio & Leasing - In-service office portfolio occupancy was 751% and leased was 762%[7] - In-service studio portfolio stage leased was 636% and total leased was 630%[7] - Excluding Sunset Glenoaks, studio total leased would have been 743% and stage leased 800%[7, 8] - Executed 72 new and renewal leases totaling 558055 square feet[13] Balance Sheet & Liquidity - Sold office property 625 Second in San Francisco for $28 million[11] - Repaid private placement notes totaling $465 million[13] - Raised $690 million through a common equity offering[13] - Unsecured revolving credit facility undrawn capacity was $775 million and unrestricted cash and cash equivalents were $236025 thousand, resulting in $1 billion of total liquidity[7, 15] - HPP's share of net debt to HPP's share of undepreciated book value was 313%[7, 15]

[Overview & Highlights](index=1&type=section&id=Overview%20%26%20Highlights) Hudson Pacific Properties reported strong leasing activity and robust liquidity, driven by AI-related office demand and studio business recovery - Executed **1.2 million square feet** of office leases in H1 2025, with **558,000 square feet** signed in Q2[1](index=1&type=chunk)[2](index=2&type=chunk) - The company maintains a strong leasing pipeline exceeding **2.0 million square feet**, anticipating portfolio stabilization[2](index=2&type=chunk) - Positive trends observed from AI-related office demand and studio business recovery, with in-service studio and stage leased percentages rising to **74.3%** and **80.0%** respectively (excluding new development)[3](index=3&type=chunk) - Ended the quarter with **$1.0 billion** of liquidity and achieved a **35% year-over-year improvement** in recurring G&A expenses, totaling **$13.5 million**[1](index=1&type=chunk)[4](index=4&type=chunk) [Financial Performance](index=1&type=section&id=Financial%20Performance) Hudson Pacific's Q2 2025 financial performance showed decreased revenue and increased net loss, primarily due to asset sales and lower office occupancy Q2 2025 vs. Q2 2024 Financial Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Revenue | $190.0 million | $218.0 million | | Net Loss Attributable to Common Stockholders | $(83.1) million | $(47.0) million | | Net Loss per Diluted Share | $(0.41) | $(0.33) | | FFO, excluding specified items | $8.0 million | $24.5 million | | FFO per Diluted Share, excluding specified items | $0.04 | $0.17 | - Revenue decline primarily attributed to **asset sales** and **reduced office occupancy**[4](index=4&type=chunk) - Increased net loss largely due to **lower revenue**, accelerated depreciation from Quixote lease terminations, and disposal of obsolete fleet[4](index=4&type=chunk) - FFO impacted by specified items, including a **$14.3 million one-time expense** for canceling non-cash compensation agreements and **$3.2 million** for early debt repayment[4](index=4&type=chunk) [Operational & Portfolio Update](index=2&type=section&id=Operational%20%26%20Portfolio%20Update) The company demonstrated strong operational execution in Q2 2025 through significant leasing activity, strategic asset sales, and a strengthened balance sheet [Leasing Activity](index=2&type=section&id=Leasing) HPP executed 72 new and renewal leases totaling 558,055 square feet in Q2, maintaining stable office occupancy and increased core studio leasing - Executed **72 leases** for **558,055 sq. ft.**, including a **77,000 sq. ft. renewal** and a **65,000 sq. ft. new lease**[9](index=9&type=chunk) - In-service office portfolio ended Q2 **75.1% occupied** and **76.2% leased**, stable compared to Q1 2025[9](index=9&type=chunk) - Excluding new Sunset Glenoaks development, in-service studio total and stage leased percentages increased to **74.3%** and **80.0%** respectively[3](index=3&type=chunk)[9](index=9&type=chunk) - GAAP rents on new and renewal leases increased **4.9%**, while cash rents decreased **1.8%** from prior levels[9](index=9&type=chunk) [Transactions](index=2&type=section&id=Transactions) The company completed the sale of its 625 Second office property for **$28.0 million**, using net proceeds to repay its unsecured revolving credit facility - Sold the **625 Second office property** in San Francisco for **$28.0 million**[7](index=7&type=chunk) - Net proceeds from the sale were used to pay down the company's unsecured revolving credit facility[7](index=7&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20as%20of%20June%2030%2C%202025) As of quarter-end, HPP had **$1.0 billion** in total liquidity, proactively managing debt by repaying **$465.0 million** in notes and raising **$690.0 million** through a common equity offering - Total liquidity stood at **$1.0 billion**, comprising **$236.0 million** in unrestricted cash and **$775.0 million** of undrawn capacity on the revolving credit facility[9](index=9&type=chunk) - Repaid **$465.0 million** of private placement notes, addressing maturities in 2025, 2026, and 2027[9](index=9&type=chunk) - Raised **$690.0 million** in gross proceeds from a common equity offering to repay the credit facility and for general corporate purposes[9](index=9&type=chunk) - HPP's share of net debt to undepreciated book value was **31.3%**, with **99.2%** of debt fixed or capped[9](index=9&type=chunk) [Dividend](index=3&type=section&id=Dividend) The company's Board of Directors declared and paid a dividend of $0.296875 per share on its 4.750% Series C cumulative preferred stock - A dividend of **$0.296875 per share** was declared and paid on the **4.750% Series C cumulative preferred stock**[10](index=10&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) Hudson Pacific issued FFO guidance for Q3 2025 and updated full-year assumptions, anticipating a decline in same-store property cash NOI - Provides third-quarter 2025 FFO outlook of **$0.01 to $0.05 per diluted share**[11](index=11&type=chunk) Updated Full Year 2025 Assumptions | Metric | Low Assumption | High Assumption | | :--- | :--- | :--- | | Growth in same-store property cash NOI | (12.50)% | (11.50)% | | General and administrative expenses (in thousands) | $(57,500) | $(63,500) | | Interest expense (in thousands) | $(168,000) | $(178,000) | | Weighted average common stock/units outstanding (in units) | 319,000,000 | 321,000,000 | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides detailed unaudited financial statements as of June 30, 2025, including balance sheets, statements of operations, and non-GAAP reconciliations for FFO, AFFO, and NOI [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Hudson Pacific reported total assets of **$8.13 billion**, with total liabilities decreasing and stockholders' equity increasing, reflecting the recent common equity offering Selected Balance Sheet Data (in thousands) | Account | 6/30/2025 | 12/31/2024 | | :--- | :--- | :--- | | Total Assets | $8,126,052 | $8,132,239 | | Unsecured and secured debt, net | $3,690,429 | $4,176,844 | | Total Liabilities | $4,440,936 | $4,954,508 | | Total HPP stockholders' equity | $3,366,415 | $2,855,470 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total revenues decreased to **$190.0 million** while operating expenses increased, resulting in a net loss of **$87.8 million** Q2 Statement of Operations Summary (in thousands) | Account | Three Months Ended 6/30/25 | Three Months Ended 6/30/24 | | :--- | :--- | :--- | | Total Revenues | $190,002 | $218,000 | | Total Operating Expenses | $230,580 | $220,759 | | Net Loss | $(87,760) | $(47,557) | | Net Loss Attributable to Common Stockholders | $(83,149) | $(47,027) | | Net Loss per Share (Diluted) | $(0.41) | $(0.33) | [Funds from Operations (FFO)](index=8&type=section&id=Funds%20from%20Operations%20(FFO)) FFO attributable to common stock/unit holders for Q2 2025 sharply declined to **$(11.2) million**, with adjusted FFO at **$8.0 million** FFO Reconciliation Summary (in thousands, except per share data) | Metric | Three Months Ended 6/30/25 | Three Months Ended 6/30/24 | | :--- | :--- | :--- | | FFO to common stock/unit holders | $(11,197) | $23,305 | | FFO per common stock/unit—diluted | $(0.05) | $0.16 | | FFO (excluding specified items) | $7,995 | $24,502 | | FFO (excluding specified items) per share | $0.04 | $0.17 | [Adjusted Funds from Operations (AFFO)](index=10&type=section&id=Adjusted%20Funds%20from%20Operations%20(AFFO)) AFFO for Q2 2025 was negative **$(6.1) million**, a significant decrease from Q2 2024, driven by lower FFO and increased capital expenditures AFFO Reconciliation Summary (in thousands, except per share data) | Metric | Three Months Ended 6/30/25 | Three Months Ended 6/30/24 | | :--- | :--- | :--- | | AFFO | $(6,070) | $24,241 | | Recurring capital expenditures, TIs & commissions | $(28,957) | $(18,645) | | AFFO per common stock/unit—diluted | $(0.03) | $0.17 | [Net Operating Income (NOI)](index=11&type=section&id=Net%20Operating%20Income%20(NOI)) In Q2 2025, same-store cash NOI decreased to **$87.1 million** from **$104.1 million** in Q2 2024, driven by lower same-store office cash revenues Same-Store Cash NOI (in thousands) | Metric | Three Months Ended 6/30/25 | Three Months Ended 6/30/24 | | :--- | :--- | :--- | | Same-store office cash revenues | $152,152 | $166,762 | | Same-store studios cash revenues | $15,525 | $20,186 | | Same-store cash NOI | $87,096 | $104,120 |

Core Insights - Cohen & Steers, Inc. has invested $300 million in Hudson Pacific Properties, representing 43% of HPP's $690 million offering, aimed at supporting HPP's balance sheet recapitalization [1][2]. Company Overview - Hudson Pacific Properties is a real estate investment trust (REIT) focused on serving tech and media tenants in key global markets, leveraging a high-barrier approach to property development and management [3]. - The company utilizes a full-service value creation platform, which includes identifying, acquiring, transforming, and developing properties into high-quality office and studio spaces [3]. Market Outlook - The West Coast office market is believed to be recovering and expected to gain momentum in the coming years, with Hudson Pacific Properties positioned to benefit from this trend due to its strong management and high-quality portfolio [2]. - The recapitalization of HPP's balance sheet is intended to reduce debt, extend existing debt maturities, and capitalize on the potential occupancy upside of its portfolio [2].

PART I—FINANCIAL INFORMATION [Financial Statements](index=5&type=section&id=ITEM%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Q1 2025, showing increased net loss and decreased revenues [Financial Statements of Hudson Pacific Properties, Inc.](index=5&type=section&id=Financial%20Statements%20of%20Hudson%20Pacific%20Properties,%20Inc.) HPP, Inc. reported a **net loss of $80.3 million** in Q1 2025, with declining operating cash flow and positive investing cash flow Consolidated Balance Sheet Highlights - HPP, Inc. (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $7,998,391 | $8,132,239 | | Total Liabilities | $4,903,235 | $4,954,508 | | Total Equity | $3,038,385 | $3,118,637 | Consolidated Statement of Operations Highlights - HPP, Inc. (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $198,459 | $214,023 | | Net Loss | $(80,278) | $(53,355) | | Net Loss Attributable to Common Stockholders | $(74,708) | $(52,202) | | Net Loss per Share (Basic & Diluted) | $(0.53) | $(0.37) | Consolidated Cash Flow Highlights - HPP, Inc. (in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,536 | $65,128 | | Net cash provided by (used in) investing activities | $15,945 | $(71,360) | | Net cash (used in) provided by financing activities | $(11,732) | $20,648 | [Financial Statements of Hudson Pacific Properties, L.P.](index=10&type=section&id=Financial%20Statements%20of%20Hudson%20Pacific%20Properties,%20L.P.) HPP, L.P. reported a **net loss of $80.3 million** in Q1 2025, mirroring the REIT's financial performance Consolidated Statement of Operations Highlights - HPP, L.P. (in thousands, except per unit data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $198,459 | $214,023 | | Net Loss | $(80,278) | $(53,355) | | Net Loss Available to Common Unitholders | $(77,102) | $(53,431) | | Net Loss per Unit (Basic & Diluted) | $(0.53) | $(0.37) | Consolidated Capital Highlights - HPP, L.P. (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Liabilities | $4,903,235 | $4,954,508 | | Total Capital | $3,038,385 | $3,118,637 | [Notes to Unaudited Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, portfolio, debt, and compliance, confirming adherence to all debt covenants - As of March 31, 2025, the company's portfolio consisted of **55 properties** totaling **19.3 million square feet**, primarily office and studio space in the U.S., Canada, and the U.K.[48](index=48&type=chunk) - In Q1 2025, the company sold two office properties, Maxwell and Foothill Research Center, for gross proceeds of **$46.0 million** and **$23.0 million**, respectively, resulting in a net gain of **$10.0 million**[64](index=64&type=chunk)[65](index=65&type=chunk) - An impairment charge of **$18.4 million** was recorded in Q1 2025 related to the 625 Second office property, which is classified as held for sale[67](index=67&type=chunk) Debt Summary as of March 31, 2025 (in thousands) | Debt Type | Amount | | :--- | :--- | | Unsecured Debt | $2,138,000 | | Secured Debt | $2,060,667 | | **Total Unsecured and Secured Debt** | **$4,198,667** | | Joint Venture Partner Debt | $66,136 | - The company was in compliance with all its unsecured debt covenants as of March 31, 2025, including total liabilities to total asset value (**46.9%** vs. ≤**65%** limit) and adjusted EBITDA to fixed charges (**1.7x** vs. ≥**1.4x** limit)[98](index=98&type=chunk)[99](index=99&type=chunk) - Subsequent to quarter-end, the company tendered for the full repayment of its Series B, C, and D notes, financed with borrowings on its unsecured revolving credit facility[171](index=171&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=41&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, portfolio, and liquidity, noting increased net loss and decreased NOI, while maintaining sufficient liquidity - Management notes that West coast office fundamentals are strengthening, with record quarterly gross leasing and improving sublease availability[178](index=178&type=chunk) - The studio business is seeing growing interest for multi-year leases[178](index=178&type=chunk) Portfolio Leasing Status as of March 31, 2025 | Portfolio | Percent Leased | | :--- | :--- | | In-service office | 76.5% | | Same-store studio (12-month avg.) | 73.8% | - Net Operating Income (NOI) decreased by **18.0%** to **$85.2 million** in Q1 2025 from **$104.0 million** in Q1 2024[223](index=223&type=chunk)[228](index=228&type=chunk) - The decline was driven by a **$7.9 million** decrease in same-store NOI and a **$10.8 million** decrease in non-same-store NOI[228](index=228&type=chunk) - The company secured a new **$475.0 million** Office Portfolio CMBS loan and used proceeds to repay other debt[215](index=215&type=chunk) - It also amended its revolving credit facility, reducing capacity from **$900.0 million** to **$775.0 million**[215](index=215&type=chunk) Funds From Operations (FFO) Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss | $(80,278) | $(53,355) | | Adjustments (Depreciation, Gain on Sale, etc.) | $86,474 | $80,066 | | **FFO to Common Stockholders and Unitholders** | **$3,058** | **$22,041** | [Historical Results of Operations](index=49&type=section&id=Historical%20Results%20of%20Operations) Net loss increased to **$80.3 million** and total NOI decreased by **18.0%** in Q1 2025 due to various factors Net Operating Income (NOI) by Segment (in thousands) | Segment | Q1 2025 NOI | Q1 2024 NOI | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Office NOI | $92,934 | $102,128 | $(9,194) | (9.0)% | | Studio NOI | $(7,733) | $1,839 | $(9,572) | (520.5)% | | **Total NOI** | **$85,201** | **$103,967** | **$(18,766)** | **(18.0)%** | - Same-store NOI decreased by **$7.9 million** (**7.9%**), driven by a **$6.2 million** drop in office NOI from lease expirations and a **$1.7 million** drop in studio NOI from lower production activity at Sunset Gower Studios[228](index=228&type=chunk) - Non-same-store NOI decreased by **$10.8 million**, primarily due to a **$7.8 million** decline in studio NOI, which included a one-time **$5.9 million** lease termination fee related to Quixote cost-cutting initiatives[228](index=228&type=chunk) - General and administrative expenses decreased by **6.2%** to **$18.5 million** due to lower travel, IT, and shareholder relations costs[242](index=242&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through cash, operating cash flow, and credit facilities, despite a decrease in operating cash flow - Principal sources of liquidity include cash on hand, cash from operations, strategic dispositions, and borrowings under its credit facilities[244](index=244&type=chunk)[247](index=247&type=chunk) Borrowing Capacity as of March 31, 2025 (in thousands) | Facility | Total Capacity | Amount Drawn | Remaining Capacity | | :--- | :--- | :--- | :--- | | Unsecured revolving credit facility | $775,000 | $23,000 | $752,000 | - Net cash provided by operating activities decreased by **53.1%** to **$30.5 million** in Q1 2025, primarily due to property dispositions, tenant move-outs, and lower production activity[258](index=258&type=chunk)[259](index=259&type=chunk) - Net cash from investing activities was a source of **$15.9 million** in Q1 2025, a reversal from a **$71.4 million** use in Q1 2024, driven by **$63.2 million** in proceeds from real estate sales[260](index=260&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section states that there have been no material changes to the market risk disclosures provided in the company's 2024 Annual Report on Form 10-K - There have been no material changes for the three months ended March 31, 2025, to the market risk information provided in the 2024 Annual Report on Form 10-K[274](index=274&type=chunk) [Controls and Procedures](index=61&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - For both Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P., the CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[277](index=277&type=chunk)[280](index=280&type=chunk) - There were no changes in internal control over financial reporting during the first quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[281](index=281&type=chunk)[282](index=282&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=63&type=section&id=ITEM%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its operations - The company is not currently a party to any material legal proceedings[284](index=284&type=chunk) [Risk Factors](index=63&type=section&id=ITEM%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the 2024 Annual Report on Form 10-K[285](index=285&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 177,980 shares of common stock for vested restricted awards and repurchased 64,672 shares for tax withholding - In Q1 2025, the company issued **177,980 shares** of common stock upon vesting of restricted stock awards, with no cash consideration[286](index=286&type=chunk) - **64,672 shares** were repurchased to satisfy tax withholding obligations related to the vesting of restricted stock units at an average price of **$3.00 per share**[288](index=288&type=chunk)[289](index=289&type=chunk) - As of March 31, 2025, **$35.3 million** remained available for repurchase under the company's authorized share repurchase program[288](index=288&type=chunk) [Defaults Upon Senior Securities](index=63&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon its senior securities during the period - None[290](index=290&type=chunk) [Mine Safety Disclosures](index=64&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[292](index=292&type=chunk) [Other Information](index=64&type=section&id=ITEM%205.%20Other%20Information) During the first quarter of 2025, no officers or directors adopted or terminated a Rule 10b5-1 trading plan - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the quarter[293](index=293&type=chunk) [Exhibits](index=65&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and certifications - Exhibits filed include modifications to credit agreements, new loan agreements, and required CEO/CFO certifications[295](index=295&type=chunk)

Core Viewpoint - Hudson Pacific Properties (HPP) reported quarterly funds from operations (FFO) of $0.09 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.17 per share a year ago, indicating a 47.06% year-over-year decline [1][2] Financial Performance - The company posted revenues of $198.46 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 2.32%, and down from $214.02 million year-over-year, reflecting a 7.26% decrease [2] - Over the last four quarters, Hudson Pacific has surpassed consensus FFO estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Hudson Pacific shares have declined approximately 26.4% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The current consensus FFO estimate for the upcoming quarter is $0.07 on revenues of $204.44 million, and for the current fiscal year, it is $0.34 on revenues of $831.33 million [7] Industry Outlook - The Zacks Industry Rank for REIT and Equity Trust - Other is currently in the bottom 37% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in estimate revisions, which could impact Hudson Pacific's stock performance [5][6]

Financial Performance - Total revenues decreased to $198459 thousand from $214023 thousand, primarily due to asset sales and lower office occupancy[7, 13] - Net loss attributable to common stockholders was $74708 thousand, or $0053 per diluted share, compared to a net loss of $52202 thousand, or $037 per diluted share[7, 13] - FFO, excluding specified items, was $12865 thousand, or $009 per diluted share, compared to $24191 thousand, or $017 per diluted share[7, 13] - AFFO was $1711 thousand, or $001 per diluted share, compared to $28491 thousand, or $019 per diluted share[7, 13] - Same-store cash NOI decreased to $93198 thousand from $103395 thousand, primarily due to lower office occupancy, representing a (99)% decrease[7, 13, 28] Portfolio & Leasing Activity - In-service office portfolio occupancy decreased to 751% from 790% year-over-year[7] - In-service office portfolio leased percentage decreased to 765% from 805% year-over-year[7] - Executed 62 new and renewal leases totaling 630295 square feet[13] - GAAP rents increased 48% while cash rents decreased (136)%[7, 13] Balance Sheet & Debt - HPP's share of net debt to HPP's share of undepreciated book value was 390%[7, 13] - Unsecured revolving credit facility undrawn capacity was $752000 thousand[7, 13]