Financial Performance - Total revenue decreased to $186.6 million compared to $200.4 million primarily due to asset sales and lower office occupancy[14] - Net loss attributable to common stockholders was $136.5 million or $0.30 per diluted share compared to a net loss of $97.9 million or $0.69 per diluted share mostly attributable to a loss on the deconsolidation of Sunset Glenoaks[14] - Same-store cash NOI decreased by 10.7% to $89.3 million compared to $100.0 million primarily due to lower office occupancy[7] - FFO excluding specified items was $16.7 million or $0.04 per diluted share compared to $14.3 million or $0.10 per diluted share mostly due to general and administrative and interest expense savings and higher studio NOI[14] - AFFO was $12.3 million or $0.03 per diluted share compared to $15.8 million or $0.11 per diluted share mostly due to lower GAAP non-cash revenue partially offset by the items affecting FFO as well as lower recurring capital expenditures[7] Portfolio & Leasing - In-service office portfolio ended the quarter at 75.9% occupied and 76.5% leased up sequentially from 75.1% occupied and 76.2% leased in the second quarter this year[14] - In-service studio portfolio and stages were 64.6% and 65.8% leased respectively over the trailing 12 months up sequentially from 63.0% and 63.6% for the same metrics in the second quarter this year[14] - Executed 75 new and renewal leases totaling 515450 square feet including a 106000-square-foot new lease with an AI company at Page Mill Center in Palo Alto[14] - GAAP and cash rents on new leases signed were 6.3% and 10.0% lower respectively compared to prior levels primarily attributable to several small leases signed in Palo Alto rolling from peak market rents to still healthy rents of approximately $80 per square foot NNN[14] Balance Sheet & Capital Structure - The company has $1 billion of total liquidity comprised of $190.4 million of unrestricted cash and cash equivalents and $795.3 million of undrawn capacity under the unsecured revolving credit facility[7] - HPP's share of net debt to HPP's share of undepreciated book value was 32.2% with 100.0% of debt fixed or capped with a weighted average interest rate of 5.0% and no debt maturities until third quarter 2026[7]

分组1 - Hudson Pacific Properties (HPP) reported quarterly funds from operations (FFO) of $0.04 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, but down from $0.1 per share a year ago, resulting in an FFO surprise of +100.00% [1] - The company posted revenues of $186.62 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.8%, compared to year-ago revenues of $200.39 million [2] - Hudson Pacific has surpassed consensus FFO estimates in all four of the last quarters, while it has only topped consensus revenue estimates once in the same period [2] 分组2 - The stock has underperformed the market, losing about 25.7% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the outlook for FFO [4][6] - The current consensus FFO estimate for the coming quarter is $0.02 on revenues of $191.71 million, and for the current fiscal year, it is $0.15 on revenues of $751.54 million [7] 分组3 - The Zacks Industry Rank indicates that the REIT and Equity Trust - Other industry is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for Q3 2025 was $186.6 million, down from $200.4 million in Q3 2024, primarily due to asset sales and lower office occupancy[4] - Net loss attributable to common stockholders was $136.5 million, or $0.30 per diluted share, compared to a net loss of $97.9 million, or $0.69 per diluted share in Q3 2024[4] - Total revenues for the three months ended September 30, 2025, were $186,617, a decrease of 6.9% compared to $200,393 for the same period in 2024[25] - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $136,467, compared to a net loss of $97,918 for the same period in 2024, reflecting an increase in losses of approximately 39.2%[25] - Net loss for the three months ended September 30, 2025, was $144,086, compared to a net loss of $107,013 for the same period in 2024, representing a 34.6% increase in loss year-over-year[26] Funds from Operations (FFO) - FFO, excluding specified items, was $16.7 million, or $0.04 per diluted share, compared to $14.3 million, or $0.10 per diluted share in the same quarter last year[4] - The fourth quarter FFO outlook is projected to be between $0.01 and $0.05 per diluted share[12] - Funds from Operations (FFO) attributable to common stock/unit holders for the three months ended September 30, 2025, was $14,624, up 115.5% from $6,791 in the same period of 2024[26] - FFO per common stock/unit—diluted for the three months ended September 30, 2025, was $0.03, down from $0.05 in the same period of 2024[31] Expenses and Liabilities - General and administrative expenses improved by 30% to $13.7 million compared to $19.5 million in the previous year[4] - Total operating expenses for the three months ended September 30, 2025, were $211,753, a decrease of 4.2% compared to $221,057 for the same period in 2024[25] - Total liabilities decreased to $4,310,391 from $4,954,508, indicating a reduction of about 13.0%[24] - Operating lease liabilities decreased to $350,736 from $380,004, a decline of approximately 7.7%[24] Cash and Liquidity - The company has $1.0 billion of liquidity, consisting of $190.4 million in unrestricted cash and $795.3 million in undrawn capacity under its revolving credit facility[11] - Cash and cash equivalents increased significantly to $190,436 from $63,256, marking a growth of approximately 201.5%[24] Real Estate and Leasing - The company executed 75 new and renewal leases totaling 515,450 square feet, including a significant 106,000-square-foot lease with an AI company[10] - The in-service office portfolio ended the quarter at 75.9% occupied and 76.5% leased, an increase from 75.1% occupied and 76.2% leased in Q2 2025[10] - The company has a leasing pipeline of 2.2 million square feet, with the lowest lease expiration profile in four years, positioning it well for future growth[3] - Rental revenues from office properties for the three months ended September 30, 2025, were $148,290, down 9.0% from $162,908 in the same period last year[25] Asset Management - Total assets decreased to $7,795,790, down from $8,132,239 as of December 31, 2024, representing a decline of approximately 4.1%[24] - The company acquired a 45% ownership interest in the Hill7 office property in Seattle, assuming $45.5 million of the joint venture's debt[6] Operating Metrics - Same-store cash Net Operating Income (NOI) for the three months ended September 30, 2025, was $89,300, down 10.7% from $99,952 in the same period of 2024[32] - Total cash NOI for the three months ended September 30, 2025, was $84,601, compared to $97,463 for the same period in 2024, reflecting a decrease of 13.2%[32] - The company reported a loss from unconsolidated real estate entities of $744 for the three months ended September 30, 2025, compared to a loss of $3,219 in the same period last year[25] Depreciation and Amortization - Depreciation and amortization for the three months ended September 30, 2025, totaled $94,085, compared to $86,672 for the same period in 2024, indicating an increase of 8.1%[32] Stock and Shares - The weighted average shares of common stock outstanding for the three months ended September 30, 2025, were 451,031, compared to 141,232 for the same period in 2024, indicating a significant increase in shares outstanding[25] - The weighted average common stock/units outstanding—diluted for the three months ended September 30, 2025, was 457,085, significantly higher than 145,640 for the same period in 2024[31] Performance Evaluation - Hudson Pacific Properties evaluates performance based on property Net Operating Income (NOI) from continuing operations, which is not a GAAP measure[33] - NOI is calculated as operating revenues minus property-level operating expenses, providing insights into occupancy rates, rental rates, and operating costs[33] - The company believes that cash basis NOI, which excludes straight-line rent and non-cash adjustments, is a useful measure of operating performance for investors[33]

Group 1 - Hudson Pacific Properties Inc. (NYSE:HPP) is considered one of the best stocks under $3 to invest in [1] - Jefferies lowered the price target for Hudson Pacific to $2.40 from $2.50 while maintaining a Hold rating [1][2] - Jefferies identified AI as a key theme influencing future office demand [1][3] Group 2 - Cantor Fitzgerald initiated coverage of Hudson Pacific with an Overweight rating and a price target of $3.50 [3] - The sentiment from Cantor Fitzgerald is part of a broader coverage initiation of US REITs, indicating a lack of enthusiasm for a REIT recovery in 2026 [3] - Cantor Fitzgerald believes the REIT industry is well-positioned over the next 12 to 24 months [3]

Core Viewpoint - Hudson Pacific Properties, Inc. (NYSE: HPP) has preferred shares that are currently deeply discounted, but the company is experiencing a rising occupancy rate, which is expected to increase further due to a significant number of upcoming lease expirations [1] Group 1: Company Performance - The occupancy rate of Hudson Pacific Properties is on the rise and is anticipated to improve further [1] - The company is positioned to benefit from an immense wall of upcoming lease expirations, which may enhance its occupancy and revenue potential [1] Group 2: Market Context - The equity market serves as a powerful mechanism for wealth creation or destruction over the long term, influenced by daily price fluctuations [1] - Pacifica Yield aims to focus on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Viewpoint - Hudson Pacific Properties, Inc. (NYSE: HPP) has preferred shares that are currently deeply discounted, but the company is experiencing a rising occupancy rate, which is expected to increase further due to a significant number of upcoming lease expirations [1] Group 1: Company Performance - The occupancy rate of Hudson Pacific Properties is on the rise and is anticipated to improve further [1] - The company is positioned to benefit from an immense wall of upcoming lease expirations, which may enhance its occupancy and revenue potential [1] Group 2: Market Context - The equity market serves as a powerful mechanism for wealth creation or destruction over the long term, influenced by daily price fluctuations [1] - Pacifica Yield focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Group 1 - The company is responsible for the development of all transcript-related projects [1] - The company publishes thousands of quarterly earnings calls per quarter and is expanding its coverage [1]

[PART I—FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) This part presents unaudited consolidated financial statements and management's discussion for Hudson Pacific Properties entities [ITEM 1. Financial Statements of Hudson Pacific Properties, Inc.](index=5&type=section&id=ITEM%201.%20Financial%20Statements%20of%20Hudson%20Pacific%20Properties%2C%20Inc.) This section presents Hudson Pacific Properties, Inc.'s unaudited consolidated financial statements, including balance sheets, income, comprehensive loss, equity, and cash flow statements [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(unaudited)%20and%20December%2031%2C%202024) Presents the unaudited consolidated balance sheets for Hudson Pacific Properties, Inc. as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $8,126,052 | $8,132,239 | -$6,187 | | Total Liabilities | $4,440,936 | $4,954,508 | -$513,572 | | Total Equity | $3,630,332 | $3,118,637 | +$511,695 | | Cash and cash equivalents | $236,025 | $63,256 | +$172,769 | | Unsecured and secured debt, net | $3,690,429 | $4,176,844 | -$486,415 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Details the unaudited consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations (Three Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | Total revenues | $190,002 | $218,000 | -$27,998 | | Total operating expenses | $230,580 | $220,759 | +$9,821 | | Net loss | $(87,760) | $(47,557) | -$40,203 | | Net loss attributable to common stockholders | $(83,149) | $(47,027) | -$36,122 | | Basic and Diluted EPS | $(0.41) | $(0.33) | -$0.08 | Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | Total revenues | $388,461 | $432,023 | -$43,562 | | Total operating expenses | $455,406 | $442,379 | +$13,027 | | Net loss | $(168,038) | $(100,912) | -$67,126 | | Net loss attributable to common stockholders | $(157,857) | $(99,229) | -$58,628 | | Basic and Diluted EPS | $(0.92) | $(0.70) | -$0.22 | [Consolidated Statements of Comprehensive Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Presents the unaudited consolidated statements of comprehensive loss for the three and six months ended June 30, 2025 and 2024 [Consolidated Statements of Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Equity%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Outlines the unaudited consolidated statements of equity for the three and six months ended June 30, 2025 and 2024 [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Provides the unaudited consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 [ITEM 1. Financial Statements of Hudson Pacific Properties, L.P.](index=14&type=section&id=ITEM%201.%20Financial%20Statements%20of%20Hudson%20Pacific%20Properties%2C%20L.P.) This section presents Hudson Pacific Properties, L.P.'s unaudited consolidated financial statements, including balance sheets, income, comprehensive loss, capital, and cash flow statements [Consolidated Balance Sheets](index=14&type=section&id=Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20(unaudited)%20and%20December%2031%2C%202024) Presents the unaudited consolidated balance sheets for Hudson Pacific Properties, L.P. as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $8,126,052 | $8,132,239 | -$6,187 | | Total Liabilities | $4,440,936 | $4,954,508 | -$513,572 | | Total Capital | $3,630,332 | $3,118,637 | +$511,695 | | Cash and cash equivalents | $236,025 | $63,256 | +$172,769 | | Unsecured and secured debt, net | $3,690,429 | $4,176,844 | -$486,415 | [Consolidated Statements of Operations](index=15&type=section&id=Consolidated%20Statements%20of%20Operations%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Details the unaudited consolidated statements of operations for the three and six months ended June 30, 2025 and 2024 Consolidated Statements of Operations (Three Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | Total revenues | $190,002 | $218,000 | -$27,998 | | Total operating expenses | $230,580 | $220,759 | +$9,821 | | Net loss | $(87,760) | $(47,557) | -$40,203 | | Net loss available to common unitholders | $(85,358) | $(48,252) | -$37,106 | | Basic and Diluted EPS | $(0.41) | $(0.33) | -$0.08 | Consolidated Statements of Operations (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | Total revenues | $388,461 | $432,023 | -$43,562 | | Total operating expenses | $455,406 | $442,379 | +$13,027 | | Net loss | $(168,038) | $(100,912) | -$67,126 | | Net loss available to common unitholders | $(162,460) | $(101,683) | -$60,777 | | Basic and Diluted EPS | $(0.92) | $(0.70) | -$0.22 | [Consolidated Statements of Comprehensive Loss](index=16&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Presents the unaudited consolidated statements of comprehensive loss for the three and six months ended June 30, 2025 and 2024 [Consolidated Statements of Capital](index=18&type=section&id=Consolidated%20Statements%20of%20Capital%20(unaudited)%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Outlines the unaudited consolidated statements of capital for the three and six months ended June 30, 2025 and 2024 [Consolidated Statements of Cash Flows](index=21&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Provides the unaudited consolidated statements of cash flows for the six months ended June 30, 2025 and 2024 [Notes to Unaudited Consolidated Financial Statements](index=23&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited consolidated financial statements, covering organization, accounting policies, investments, debt, equity, and other disclosures [Note 1. Organization](index=23&type=section&id=1.%20Organization) Hudson Pacific Properties, Inc. operates as a REIT, managing office and studio properties through its operating partnership across the U.S., Canada, and UK - Hudson Pacific Properties, Inc. is a REIT and the sole general partner of Hudson Pacific Properties, L.P., owning approximately **97.5%** of the operating partnership as of June 30, 2025[13](index=13&type=chunk) Portfolio Summary (June 30, 2025) | Segment | Number of Properties | Square Feet | | :---------------------- | :------------------- | :------------ | | Consolidated Office | 41 | 12,687,098 | | Consolidated Studio | 4 | 1,473,568 | | Consolidated Future Development | 5 | 1,616,242 | | Total Consolidated Portfolio | 50 | 15,776,908 | | Unconsolidated Office | 1 | 1,524,254 | | Unconsolidated Studio | 1 | 232,000 | | Unconsolidated Future Development | 2 | 1,617,347 | | Total Unconsolidated Portfolio | 4 | 3,373,601 | | **TOTAL** | **54** | **19,150,509** | [Note 2. Summary of Significant Accounting Policies](index=23&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis of financial statement presentation, consolidation principles, revenue recognition, and recent accounting pronouncements - The Company consolidates its operating partnership and **13 out of 19** joint ventures identified as VIEs. **Six** joint ventures are unconsolidated and accounted for using the equity method[55](index=55&type=chunk)[56](index=56&type=chunk)[59](index=59&type=chunk) Revenue from Contracts with Customers (Three Months Ended June 30, 2025 vs. 2024) | Revenue Stream | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Ancillary revenues | $19,016 | $26,187 | | Other revenues | $5,928 | $4,257 | | Studio-related tenant recoveries | $636 | $519 | | Management fee income | $1,476 | $1,371 | | Management services reimbursement income | $1,123 | $1,042 | - Goodwill carrying value remained at **$156.5 million** as of June 30, 2025, with no impairment recognized during the six months ended June 30, 2025 and 2024. Recently issued accounting pronouncements include ASU 2023-09 (Income Taxes) effective after December 15, 2024, and ASU 2024-03 (Income Statement Expenses) effective after December 15, 2026[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) [Note 3. Investment in Real Estate](index=25&type=section&id=3.%20Investment%20in%20Real%20Estate) This note details the Company's real estate investments, including cost breakdown, property dispositions, and impairment charges Investment in Real Estate, at Cost (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------- | :----------------------------- | :----------------------------- | | Land | $1,225,230 | $1,235,974 | | Building and improvements | $6,201,663 | $6,101,787 | | Tenant improvements | $727,451 | $728,186 | | Property under development | $51,292 | $161,444 | | **TOTAL** | **$8,211,478** | **$8,233,286** | Dispositions of Real Estate (Six Months Ended June 30, 2025) | Property | Segment | Disposition Date | Square Feet | Sales Price (in millions) | (Loss) Gain on Sale (in millions) | | :---------------------- | :-------- | :--------------- | :---------- | :------------------------ | :------------------------------ | | Maxwell | Office | 1/22/2025 | 102,963 | $46.0 | $(2.2) | | Foothill Research Center | Office | 3/4/2025 | 195,121 | $23.0 | $12.2 | | 625 Second | Office | 5/30/2025 | 138,354 | $28.0 | $— | - The Company recorded an impairment charge of **$18.4 million** during the six months ended June 30, 2025, related to the 625 Second office property due to a shortened expected holding period[69](index=69&type=chunk) [Note 4. Non-Real Estate Property, Plant and Equipment, net](index=26&type=section&id=4.%20Non-Real%20Estate%20Property%2C%20Plant%20and%20Equipment%2C%20net) This note provides a breakdown of the Company's non-real estate property, plant, and equipment, net of depreciation Non-Real Estate Property, Plant and Equipment, net (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Non-real estate property, plant and equipment, at cost | $193,615 | $182,050 | | Accumulated depreciation | $(64,362) | $(54,983) | | **NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET** | **$129,253** | **$127,067** | - No impairment charges were recognized for non-real estate property, plant, and equipment during the six months ended June 30, 2025 and 2024[71](index=71&type=chunk) [Note 5. Investment in Unconsolidated Real Estate Entities](index=26&type=section&id=5.%20Investment%20in%20Unconsolidated%20Real%20Estate%20Entities) This note details investments in unconsolidated joint ventures, including property types, ownership interests, and financial summaries Unconsolidated Joint Ventures (June 30, 2025) | Property | Property Type | Submarket | Ownership Interest | Functional Currency | | :-------------------------- | :------------------ | :------------------ | :----------------- | :------------------ | | Sunset Waltham Cross Studios | Future Development | Broxbourne, United Kingdom | 35% | Pound sterling | | Bentall Centre | Operating Property | Downtown Vancouver | 20% | Canadian dollar | | Sunset Pier 94 Studios | Development | Manhattan | 51% | U.S. dollar | Combined and Condensed Balance Sheets for Unconsolidated Joint Ventures (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Total Assets | $1,219,222 | $1,131,128 | | Total Liabilities | $533,405 | $496,696 | | Total Capital | $685,817 | $634,432 | Combined and Condensed Statements of Operations for Unconsolidated Joint Ventures (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Total Revenues | $32,266 | $39,065 | | Total Expenses | $39,158 | $53,696 | | Net Loss | $(6,892) | $(14,631) | [Note 6. Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net](index=28&type=section&id=6.%20Deferred%20Leasing%20Costs%20and%20Intangible%20Assets%2C%20net%20and%20Intangible%20Liabilities%2C%20net) This note details deferred leasing costs, intangible assets, and intangible liabilities, including their accumulated amortization Deferred Leasing Costs and Intangible Assets, net (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Deferred leasing costs and in-place lease intangibles, net | $124,887 | $127,595 | | Lease incentives, net | $70,176 | $33,149 | | Below-market ground leases, net | $52,023 | $53,304 | | Above-market leases, net | $12 | $199 | | Customer relationships, net | $50,512 | $57,520 | | Non-competition agreements, net | $1,195 | $3,274 | | Trade name | $37,200 | $37,200 | | Parking easement | $15,273 | $15,273 | | **TOTAL DEFERRED LEASING COSTS AND INTANGIBLE ASSETS, NET** | **$351,278** | **$327,514** | Intangible Liabilities, net (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Below-market leases, net | $19,790 | $21,838 | Amortization of Deferred Leasing Costs and Intangibles (Six Months Ended June 30, 2025 vs. 2024) | Category | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Deferred leasing costs and in-place lease intangibles | $(17,353) | $(16,500) | | Lease incentives | $(1,862) | $(222) | | Below-market ground leases | $(1,302) | $(1,345) | | Above-market leases | $(166) | $(29) | | Customer relationships | $(7,009) | $(7,008) | | Non-competition agreements | $(2,080) | $(823) | | Below-market leases | $2,048 | $2,732 | | Above-market ground leases | $— | $21 | [Note 7. Accounts Receivable](index=29&type=section&id=7.%20Accounts%20Receivable) This note provides balances for accounts receivable and straight-line rent receivables, with allowances for doubtful accounts Accounts Receivable (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Accounts receivable | $13,800 | $15,000 | | Allowance for doubtful accounts | $300 | $500 | Straight-Line Rent Receivables (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Straight-line rent receivables | $204,000 | $199,700 | | Allowance for doubtful accounts | $— | $— | [Note 8. Prepaid Expenses and Other Assets, net](index=29&type=section&id=8.%20Prepaid%20Expenses%20and%20Other%20Assets%2C%20net) This note details prepaid expenses and other assets, net, including non-real estate investments and fair value changes Prepaid Expenses and Other Assets, net (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Non-real estate investments | $48,460 | $50,373 | | Deferred tax assets | $27 | $8 | | Interest rate derivative assets | $4,047 | $4,325 | | Prepaid insurance | $17,033 | $10,074 | | Deferred financing costs, net | $1,716 | $2,165 | | Prepaid property tax | $— | $2,129 | | Other | $26,196 | $21,040 | | **TOTAL** | **$97,479** | **$90,114** | - The Company recognized an unrealized gain of **$0.2 million** for the three months ended June 30, 2025, and an unrealized loss of **$0.2 million** for the six months ended June 30, 2025, on non-real estate investments. The cumulative unrealized gain as of June 30, 2025, is **$6.6 million**[86](index=86&type=chunk) [Note 9. Debt](index=30&type=section&id=9.%20Debt) This note provides comprehensive information on the Company's outstanding unsecured and secured debt, including terms and covenants Outstanding Indebtedness (June 30, 2025 vs. December 31, 2024) | Debt Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Unsecured debt | $1,650,000 | $2,435,000 | | Secured debt | $2,059,000 | $1,752,667 | | Joint venture partner debt | $66,136 | $66,136 | | **TOTAL UNSECURED AND SECURED DEBT, NET** | **$3,690,429** | **$4,176,844** | - During the six months ended June 30, 2025, the Company repaid **$320.0 million** on the unsecured revolving credit facility, secured a **$475.0 million** Office Portfolio CMBS loan, amended its unsecured revolving credit facility to decrease capacity to **$775.0 million**, and fully repaid Series B, Series C, and Series D notes, resulting in a **$1.6 million** loss on extinguishment of debt[95](index=95&type=chunk)[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk) Future Minimum Principal Payments (as of June 30, 2025) | Year | Unsecured and Secured Debt (in thousands) | Joint Venture Partner Debt (in thousands) | | :---------------- | :-------------------------------- | :-------------------------------- | | Remaining 2025 | $314,300 | $— | | 2026 | $1,069,767 | $— | | 2027 | $500,600 | $— | | 2028 | $451,000 | $— | | 2029 | $500,000 | $— | | Thereafter | $873,333 | $66,136 | | **TOTAL** | **$3,709,000** | **$66,136** | [Note 10. Derivatives](index=33&type=section&id=10.%20Derivatives) This note describes the Company's derivative instruments used for interest rate hedging, their fair value, and reclassification expectations Derivative Instruments Fair Value (June 30, 2025 vs. December 31, 2024) | Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Total Fair Value Assets | $2,660 | $4,022 | | Total Fair Value Liabilities | $(1,387) | $(303) | - The Company expects **$1.8 million** of unrealized gain from cash flow hedges to be reclassified as a reduction to interest expense in the next 12 months[112](index=112&type=chunk) [Note 11. Income Taxes](index=33&type=section&id=11.%20Income%20Taxes) This note explains Hudson Pacific Properties, Inc.'s REIT status, tax treatment, and deferred tax asset and liability recognition - Hudson Pacific Properties, Inc. has elected to be taxed as a REIT, generally exempting it from corporate-level income tax on distributed earnings[113](index=113&type=chunk)[114](index=114&type=chunk) - The Company recorded an income tax provision of **$0.6 million** for the six months ended June 30, 2025, compared to **$0.5 million** for the same period in 2024[116](index=116&type=chunk) - A valuation allowance has been recorded against substantially all deferred tax assets due to uncertainty regarding their realizability[117](index=117&type=chunk) [Note 12. Future Minimum Rents and Lease Payments](index=34&type=section&id=12.%20Future%20Minimum%20Rents%20and%20Lease%20Payments) This note outlines the Company's future minimum base rents from tenant leases and its operating lease obligations as a lessee Future Minimum Base Rents from Properties (as of June 30, 2025) | Year | Amount (in thousands) | | :---------------- | :-------------------- | | Remaining 2025 | $250,237 | | 2026 | $484,450 | | 2027 | $427,945 | | 2028 | $360,852 | | 2029 | $291,715 | | Thereafter | $819,634 | | **TOTAL** | **$2,634,833** | - As of June 30, 2025, the present value of operating lease liabilities was **$358.5 million**, with corresponding ROU assets of **$347.7 million**. The weighted average remaining lease term was **22 years**, and the weighted average incremental borrowing rate was **5.7%**[123](index=123&type=chunk) Future Minimum Lease Payments for Operating Leases (as of June 30, 2025) | Year | Lease Payments (in thousands) | | :---------------- | :-------------------------- | | Remaining 2025 | $18,046 | | 2026 | $36,635 | | 2027 | $37,611 | | 2028 | $36,897 | | 2029 | $34,725 | | Thereafter | $493,631 | | **Total operating lease payments** | **$657,545** | [Note 13. Fair Value of Financial Instruments](index=35&type=section&id=13.%20Fair%20Value%20of%20Financial%20Instruments) This note details fair value measurements of the Company's financial assets and liabilities, categorized by input levels Fair Value of Financial Instruments (June 30, 2025 vs. December 31, 2024) | Category | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Interest rate derivative assets (Level 2) | $4,047 | $4,325 | | Interest rate derivative liabilities (Level 2) | $(1,387) | $(303) | | Non-real estate investments (measured at NAV) | $48,460 | $47,373 | Fair Value of Debt (June 30, 2025 vs. December 31, 2024) | Debt Type | Carrying Value (in thousands) | Fair Value (in thousands) | | :--------------------------------- | :-------------------------- | :------------------------ | | Unsecured debt (June 30, 2025) | $1,650,000 | $1,500,677 | | Unsecured debt (December 31, 2024) | $2,435,000 | $2,040,075 | | Secured debt (June 30, 2025) | $2,059,000 | $2,054,087 | | Secured debt (December 31, 2024) | $1,752,667 | $1,741,090 | | Consolidated joint venture partner debt (June 30, 2025) | $66,136 | $61,292 | | Consolidated joint venture partner debt (December 31, 2024) | $66,136 | $60,637 | [Note 14. Share/Unit-Based Compensation](index=36&type=section&id=14.%20Share%2FUnit-Based%20Compensation) This note describes the Company's share/unit-based compensation plans, including restricted stock and performance units, and related expenses - As of June 30, 2025, there were **10.1 million** common shares available for grant under the 2010 Incentive Plan[131](index=131&type=chunk) - The top three executive officers agreed to cancel their 2024 performance unit equity awards, resulting in an accelerated recognition of **$14.3 million** in compensation expense during the three and six months ended June 30, 2025[135](index=135&type=chunk) Total Share/Unit-Based Compensation (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Expensed share/unit-based compensation | $23,029 | $13,485 | | Capitalized share/unit-based compensation | $862 | $1,089 | | **TOTAL** | **$23,891** | **$14,574** | [Note 15. Earnings Per Share](index=37&type=section&id=15.%20Earnings%20Per%20Share) This note details the calculation of basic and diluted earnings per share for Inc. and per unit for L.P. using the two-class method Hudson Pacific Properties, Inc. Basic and Diluted EPS (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 | 2024 | | :--------------------------------- | :----- | :----- | | Net loss attributable to common stockholders | $(157,857) | $(99,229) | | Weighted average common shares outstanding—basic | 172,195,534 | 141,151,893 | | Basic and Diluted EPS | $(0.92) | $(0.70) | Hudson Pacific Properties, L.P. Basic and Diluted EPS (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 | 2024 | | :--------------------------------- | :----- | :----- | | Net loss available to common unitholders | $(162,460) | $(101,683) | | Weighted average common units outstanding—basic | 177,214,424 | 144,673,725 | | Basic and Diluted EPS | $(0.92) | $(0.70) | [Note 16. Redeemable Non-controlling Interest](index=38&type=section&id=16.%20Redeemable%20Non-controlling%20Interest) This note describes redeemable preferred units and non-controlling interests in consolidated real estate entities, including terms and activity - As of June 30, 2025, **235,768** Series A preferred units were outstanding, entitled to **6.25%** preferential distributions. During the six months ended June 30, 2025, **156,830** units were redeemed for **$3.9 million** cash[145](index=145&type=chunk)[146](index=146&type=chunk) - Redeemable non-controlling interest in consolidated real estate entities relates to the **55%** interest in the Ferry Building property joint venture, where the partner (Allianz) has a put right, classifying it as temporary equity[147](index=147&type=chunk) Reconciliation of Redeemable Non-controlling Interests (Six Months Ended June 30, 2025) | Metric | Series A Redeemable Preferred Units (in thousands) | Consolidated Real Estate Entities (in thousands) | | :--------------------------------- | :--------------------------------- | :--------------------------------------- | | Beginning of Period | $9,815 | $49,279 | | End of Period | $5,894 | $48,890 | [Note 17. Equity](index=39&type=section&id=17.%20Equity) This note details accumulated other comprehensive income (loss) activity for Inc. and L.P., non-controlling interests, and common stock Hudson Pacific Properties, Inc. AOCI (December 31, 2024 to June 30, 2025) | Metric | Derivative Instruments (in thousands) | Currency Translation Adjustments (in thousands) | Total AOCI (in thousands) | | :--------------------------------- | :---------------------------------- | :------------------------------------ | :------------------------ | | Balance at December 31, 2024 | $2,785 | $(11,202) | $(8,417) | | Balance at June 30, 2025 | $18 | $2,142 | $2,160 | Hudson Pacific Properties, L.P. AOCI (December 31, 2024 to June 30, 2025) | Metric | Derivative Instruments (in thousands) | Currency Translation Adjustments (in thousands) | Total AOCI (in thousands) | | :--------------------------------- | :---------------------------------- | :------------------------------------ | :------------------------ | | Balance at December 31, 2024 | $2,889 | $(11,602) | $(8,713) | | Balance at June 30, 2025 | $(36) | $2,232 | $2,196 | Ownership Interest in Operating Partnership (June 30, 2025 vs. December 31, 2024) | Metric | June 30, 2025 | December 31, 2024 | | :--------------------------------- | :------------ | :---------------- | | Company-owned common units | 379,150,864 | 141,279,102 | | Company's ownership interest percentage | 98.7% | 97.4% | | Non-controlling common units | 4,941,964 | 3,796,346 | | Non-controlling ownership interest percentage | 1.3% | 2.6% | [Note 18. Segment Reporting](index=41&type=section&id=18.%20Segment%20Reporting) This note presents the Company's financial performance by office and studio property segments, evaluated based on net operating income Total Segment Profit (Six Months Ended June 30, 2025 vs. 2024) | Segment | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :--------------------------------- | :------------------ | :------------------ | :------------------ | | Office net operating income | $177,266 | $202,863 | $(25,597) | | Studio net operating income | $(10,116) | $5,848 | $(15,964) | | **TOTAL SEGMENT PROFIT** | **$167,150** | **$208,711** | **$(41,561)** | Reconciliation of Net Loss to Total Profit from All Segments (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Net loss | $(168,038) | $(100,912) | | Total profit from all segments | $167,150 | $208,711 | [Note 19. Related Party Transactions](index=43&type=section&id=19.%20Related%20Party%20Transactions) This note discloses related party transactions, including employment agreements, cost reimbursements, and related party leases - The Company recognized **$2.1 million** in management services reimbursement income from unconsolidated real estate entities for the six months ended June 30, 2025, a slight decrease from **$2.2 million** in the prior year[171](index=171&type=chunk) - Related rental expense from unconsolidated real estate entities was **$0.5 million** for the six months ended June 30, 2025, compared to **$0.6 million** in the prior year[172](index=172&type=chunk) [Note 20. Commitments and Contingencies](index=44&type=section&id=20.%20Commitments%20and%20Contingencies) This note outlines the Company's commitments and contingencies, including fund investments, legal proceedings, and contractual obligations - The Company has an aggregate commitment of **$51.0 million** to non-real estate funds, with **$8.2 million** remaining to be contributed as of June 30, 2025[173](index=173&type=chunk) - Management believes the ultimate resolution of current legal claims will not have a material adverse effect on the Company's financial position[174](index=174&type=chunk) - As of June 30, 2025, **$9.6 million** in outstanding letters of credit were primarily related to the Sunset Pier 94 Studios development. The Company also had **$98.7 million** in commitments related to construction agreements and executed leases[175](index=175&type=chunk)[176](index=176&type=chunk) [Note 21. Supplemental Cash Flow Information](index=44&type=section&id=21.%20Supplemental%20Cash%20Flow%20Information) This note provides supplemental cash flow information, including cash paid for interest, non-cash activities, and cash reconciliation Cash Paid for Interest (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Cash paid for interest, net of capitalized interest | $79,116 | $78,981 | Cash and Restricted Cash Reconciliation (Six Months Ended June 30, 2025 vs. 2024) | Metric | June 30, 2025 (in thousands) | June 30, 2024 (in thousands) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Beginning of Period | $99,177 | $119,156 | | End of Period | $267,127 | $99,940 | [Note 22. Subsequent Event](index=45&type=section&id=22.%20Subsequent%20Event) This note discloses a subsequent event regarding the redemption of Series A preferred units after the reporting period - On July 18, 2025, **123,991** Series A preferred units were redeemed for **$3.1 million** in cash[179](index=179&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of financial condition and operations, covering executive summary, segment performance, liquidity, and accounting policies [Forward-looking Statements](index=46&type=section&id=Forward-looking%20Statements) This section provides a cautionary statement regarding forward-looking statements, noting that actual results may differ due to risks - Forward-looking statements are identified by words such as "anticipate," "believe," "expect," "intend," "may," "might," "plan," "estimate," "project," "should," "will," "result" and similar expressions[181](index=181&type=chunk) - Key risks include adverse economic or real estate developments, tenant defaults, fluctuations in interest rates, failure to obtain necessary financing, and inability to maintain REIT status[182](index=182&type=chunk)[183](index=183&type=chunk) [Executive Summary](index=47&type=section&id=Executive%20Summary) This executive summary provides a high-level overview of the Company's real estate portfolio, including office and studio properties and leasing status - As of June 30, 2025, the portfolio included approximately **14.2 million** square feet of office properties, **45** sound stages and **1.7 million** square feet of studio properties, and **3.2 million** square feet of land for undeveloped density rights[185](index=185&type=chunk) - The in-service office portfolio was **76.2%** leased, and same-store studio properties were **73.8%** leased for the 12 months ended June 30, 2025[186](index=186&type=chunk) Office Portfolio Statistics (June 30, 2025) | Category | Number of Properties | Rentable Square Feet | Percent Occupied | Percent Leased | Annualized Base Rent per Square Foot | | :-------------------------- | :------------------- | :------------------- | :--------------- | :------------- | :----------------------------------- | | Same-store | 40 | 13,420,243 | 75.1% | 76.2% | $54.49 | | Total in-service office | 40 | 13,420,243 | 75.1% | 76.2% | $54.49 | [Overview](index=49&type=section&id=Overview) This overview details recent business and property activities, including acquisitions, dispositions, development projects, and financing [Business Acquisitions](index=49&type=section&id=Business%20Acquisitions) Reports no business acquisitions during the six months ended June 30, 2025 - The Company had no business acquisitions during the six months ended June 30, 2025[199](index=199&type=chunk) [Property Acquisitions](index=49&type=section&id=Property%20Acquisitions) Reports no property acquisitions during the six months ended June 30, 2025 - The Company had no property acquisitions during the six months ended June 30, 2025[200](index=200&type=chunk) [Property Dispositions](index=49&type=section&id=Property%20Dispositions) Details the sale of Maxwell, Foothill Research Center, and 625 Second properties during the six months ended June 30, 2025 - During the six months ended June 30, 2025, the Company sold its Maxwell (**$46.0 million**), Foothill Research Center (**$23.0 million**), and 625 Second (**$28.0 million**) properties. A portion of the net proceeds was used to repay outstanding amounts on the unsecured revolving credit facility[201](index=201&type=chunk) [In Process and Future Development Projects](index=50&type=section&id=In%20Process%20and%20Future%20Development%20Projects) Outlines current and future development projects, including under construction, recently completed, and pipeline projects - Under construction: Sunset Pier 94 Studios (Studio, Manhattan) with **232,000 sq ft**, estimated completion **Q4-2025** and stabilization **Q3-2026**. Recently completed: Washington 1000 (Office, Denny Triangle) with **546,000 sq ft**, completed **Q4-2024** and estimated stabilization **Q1-2027**[202](index=202&type=chunk) - Future development pipeline includes projects like Sunset Las Palmas Studios, Sunset Gower Studios, Element LA, 10900/10950 Washington (residential), Burrard Exchange, and Sunset Waltham Cross Studios, totaling **3,233,589 square feet**[202](index=202&type=chunk) - Repositioning projects as of June 30, 2025, include 899 Howard, Page Mill Center, Rincon Center, Sunset Las Palmas Studios, Bentall Centre, Palo Alto Square, and Sunset Gower Studios, totaling **270,353 square feet**[209](index=209&type=chunk) [Historical Office Tenant Improvements and Leasing Commissions](index=53&type=section&id=Historical%20Office%20Tenant%20Improvements%20and%20Leasing%20Commissions) Presents historical tenant improvement and leasing commission costs for office properties for new leases and renewals Tenant Improvement and Leasing Commission Costs (Six Months Ended June 30, 2025 vs. 2024) | Lease Type | Metric | 2025 | 2024 | | :-------------------------- | :----------------------------------- | :----- | :----- | | Renewals | Tenant improvement costs per square foot | $17.88 | $26.23 | | | Leasing commission costs per square foot | $9.88 | $12.25 | | New leases | Tenant improvement costs per square foot | $64.90 | $50.24 | | | Leasing commission costs per square foot | $14.33 | $12.43 | | Total | Tenant improvement costs per square foot | $47.24 | $41.46 | | | Leasing commission costs per square foot | $12.65 | $12.37 | [Financings](index=53&type=section&id=Financings) Details recent financing activities, including debt repayments, new loans, credit facility amendments, and equity offerings - During the six months ended June 30, 2025, the Company repaid **$320.0 million** on its unsecured revolving credit facility and fully repaid its Series B, Series C, and Series D notes[219](index=219&type=chunk)[222](index=222&type=chunk) - The Company secured a **$475.0 million** Office Portfolio CMBS loan, using proceeds to repay **$259.0 million** on its unsecured revolving credit facility and a **$168.0 million** loan secured by the Element LA property[220](index=220&type=chunk) - The unsecured revolving credit facility agreement was amended, decreasing its total capacity from **$900.0 million** to **$775.0 million**. Additionally, the Company sold **237,553,442** shares of common stock and pre-funded warrants, generating **$689.3 million** in gross proceeds[221](index=221&type=chunk)[224](index=224&type=chunk) [Historical Results of Operations](index=54&type=section&id=Historical%20Results%20of%20Operations) This section compares the Company's financial performance for the three and six months ended June 30, 2025 and 2024, focusing on net loss and NOI [Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024](index=54&type=section&id=Comparison%20of%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Three%20Months%20Ended%20June%2030%2C%202024) Compares financial results for the three months ended June 30, 2025, versus the same period in 2024, highlighting changes in net loss and NOI - Net loss increased by **$40.2 million (84.5%)** to **$87.8 million** for the three months ended June 30, 2025, compared to **$47.6 million** for the same period in 2024[227](index=227&type=chunk) - Net Operating Income (NOI) decreased by **$22.8 million (21.8%)** to **$81.9 million**. This was driven by a **$15.0 million** decrease in same-store NOI (due to lower office rental revenues from lease terminations and reduced studio production activity) and a **$7.8 million** decrease in non-same-store NOI (due to property sales and lower studio activity)[230](index=230&type=chunk)[237](index=237&type=chunk) - General and administrative expenses increased by **$7.1 million (34.2%)** to **$27.8 million**, primarily due to **$14.3 million** in accelerated compensation expense related to the cancellation of 2024 performance unit equity awards. Depreciation and amortization expense increased by **$8.0 million (9.2%)** to **$94.8 million** due to accelerated depreciation from early lease terminations and asset disposals[252](index=252&type=chunk)[253](index=253&type=chunk) [Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024](index=59&type=section&id=Comparison%20of%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20to%20the%20Six%20Months%20Ended%20June%2030%2C%202024) Compares financial results for the six months ended June 30, 2025, versus the same period in 2024, highlighting changes in net loss and NOI - Net loss increased by **$67.1 million (66.5%)** to **$168.0 million** for the six months ended June 30, 2025, compared to **$100.9 million** for the same period in 2024[254](index=254&type=chunk) - Net Operating Income (NOI) decreased by **$41.6 million (19.9%)** to **$167.2 million**. This was driven by a **$22.2 million** decrease in same-store NOI (due to lower office rental revenues and studio production) and a **$19.4 million** decrease in non-same-store NOI (due to lower studio activity and property sales)[257](index=257&type=chunk)[260](index=260&type=chunk) - The Company recognized a net gain of **$10.0 million** on real estate sales and an impairment loss of **$18.5 million**. A **$3.5 million** loss on extinguishment of debt was also recorded. General and administrative expenses increased by **$5.8 million (14.5%)** due to accelerated compensation expense, and depreciation and amortization expense increased by **$9.2 million (5.1%)** due to accelerated depreciation[271](index=271&type=chunk)[272](index=272&type=chunk)[273](index=273&type=chunk)[276](index=276&type=chunk)[277](index=277&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's liquidity sources and uses, including cash, debt, equity, and contractual obligations, and its financial capacity [Liquidity Sources](index=67&type=section&id=Liquidity%20Sources) Details the Company's liquidity sources, including cash, equity offerings, ATM program, and borrowing capacity - The Company had **$236.0 million** in cash and cash equivalents at June 30, 2025. In June 2025, an equity offering generated **$689.3 million** in gross proceeds. The ATM program has sold **$65.8 million** of common stock out of **$125.0 million** authorized[279](index=279&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk) Borrowing Capacity (as of June 30, 2025) | Loan | Total Borrowing Capacity (in thousands) | Amount Drawn (in thousands) | Remaining Borrowing Capacity (in thousands) | | :--------------------------------- | :------------------------------------ | :-------------------------- | :------------------------------------------ | | Unsecured revolving credit facility | $775,000 | $— | $775,000 | | Sunset Glenoaks Studios construction loan | $50,300 | $50,300 | $— | | Bentall Centre (HPP's share) | $97,038 | $95,640 | $1,398 | | Sunset Pier 94 Studios construction loan (HPP's share) | $46,810 | $24,481 | $22,329 | | **TOTAL** | **$969,148** | **$170,421** | **$798,727** | - The Company's senior unsecured debt ratings are **B2** (Moody's), **B** (Standard and Poor's), and **B+** (Fitch), indicating non-investment grade. The Company is in the process of refinancing the **$314.3 million** 1918 Eighth property loan and extending **$462 million** of revolving credit commitments. The ratio of total consolidated debt to total consolidated market capitalization was **68.7%** as of June 30, 2025[284](index=284&type=chunk)[285](index=285&type=chunk)[287](index=287&type=chunk) [Liquidity Uses](index=68&type=section&id=Liquidity%20Uses) Reports no material changes in contractual obligations from the prior annual report - There were no material changes outside the ordinary course of business in the information regarding specified contractual obligations contained in the 2024 Annual Report on Form 10-K[290](index=290&type=chunk) [Cash Flows](index=68&type=section&id=Cash%20Flows) Summarizes cash flow activities from operations, investing, and financing for the six months ended June 30, 2025 and 2024 Cash Flow Summary (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | Dollar Change (in thousands) | Percent Change | | :--------------------------------- | :------------------ | :------------------ | :-------------- | :------------- | | Net cash provided by operating activities | $28,496 | $100,750 | $(72,254) | (71.7)% | | Net cash used in investing activities | $(8,078) | $(121,030) | $112,952 | (93.3)% | | Net cash provided by financing activities | $147,532 | $1,064 | $146,468 | 13,765.8% | - The decrease in net cash provided by operating activities was primarily due to property dispositions, lease terminations, and lower production activity. The decrease in net cash used in investing activities resulted from proceeds from real estate sales and decreased contributions to unconsolidated entities. The increase in net cash provided by financing activities was mainly from the equity offering, offset by debt repayments[293](index=293&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) [Off-Balance Sheet Arrangements](index=69&type=section&id=Off-Balance%20Sheet%20Arrangements) Details unconsolidated joint venture indebtedness and related borrowing capacities Unconsolidated Joint Venture Indebtedness (as of June 30, 2025) | Loan | Ownership Interest | Amount Drawn (in thousands) | Undrawn Capacity (in thousands) | Total Capacity (in thousands) | | :-------------------------- | :----------------- | :-------------------------- | :------------------------------ | :---------------------------- | | Bentall Centre | 20% | $478,199 | $6,992 | $485,191 | | Sunset Pier 94 Studios | 26% | $95,811 | $87,389 | $183,200 | [Critical Accounting Policies](index=69&type=section&id=Critical%20Accounting%20Policies) This section refers to Note 2 for critical accounting policies, emphasizing estimates and judgments impacting financial reporting - The preparation of financial statements requires management to make estimates and judgments, such as the assignment of purchase price for acquired properties and the effect of property tax reassessments. These determinations, though subjective, affect reported amounts, and actual outcomes may differ materially from estimates[298](index=298&type=chunk) [Non-GAAP Supplemental Financial Measure: Funds From Operations](index=70&type=section&id=Non-GAAP%20Supplemental%20Financial%20Measure%3A%20Funds%20From%20Operations) This section defines FFO per NAREIT guidelines, explains its utility as a REIT performance measure, and reconciles it from net loss - FFO is calculated in accordance with NAREIT's White Paper, excluding gains/losses from sales of depreciable real estate and impairment write-downs, plus real estate-related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures[300](index=300&type=chunk) - FFO is considered a useful supplemental measure for comparing operating performance among REITs, but it should not be viewed as an alternative to GAAP operating performance as it does not reflect depreciation, amortization, or capital expenditures[301](index=301&type=chunk)[303](index=303&type=chunk) Reconciliation of Net Loss to FFO (Six Months Ended June 30, 2025 vs. 2024) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--------------------------------- | :------------------ | :------------------ | | Net loss | $(168,038) | $(100,912) | | FFO to common stockholders and unitholders | $(8,138) | $45,252 | [ITEM 3. Quantitative and Qualitative Disclosures About Market Risk](index=71&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section reports no material changes to market risk disclosures from the Company's 2024 Annual Report on Form 10-K - There have been no material changes to the market risk disclosures for the six months ended June 30, 2025, compared to the 2024 Annual Report on Form 10-K[305](index=305&type=chunk) [ITEM 4. Controls and Procedures](index=71&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section details disclosure controls and procedures for Inc. and L.P., confirming effectiveness and no material changes in internal control [Disclosure Controls and Procedures (Hudson Pacific Properties, Inc.)](index=71&type=section&id=Disclosure%20Controls%20and%20Procedures%20(Hudson%20Pacific%20Properties%2C%20Inc.)) Confirms the effectiveness of Hudson Pacific Properties, Inc.'s disclosure controls and procedures as of June 30, 2025 - Hudson Pacific Properties, Inc.'s management, including the Chief Executive Officer and Chief Financial Officer, concluded that its disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance for timely and accurate reporting[307](index=307&type=chunk)[308](index=308&type=chunk) [Disclosure Controls and Procedures (Hudson Pacific Properties, L.P.)](index=71&type=section&id=Disclosure%20Controls%20and%20Procedures%20(Hudson%20Pacific%20Properties%2C%20L.P.)) Confirms the effectiveness of Hudson Pacific Properties, L.P.'s disclosure controls and procedures as of June 30, 2025 - Hudson Pacific Properties, L.P.'s management, including the Chief Executive Officer and Chief Financial Officer of its general partner, concluded that its disclosure controls and procedures were effective as of June 30, 2025, ensuring timely and accurate reporting[310](index=310&type=chunk)[311](index=311&type=chunk) [Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, Inc.)](index=71&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting%20(Hudson%20Pacific%20Properties%2C%20Inc.)) Reports no material changes in Hudson Pacific Properties, Inc.'s internal control over financial reporting during Q2 2025 - There were no changes that occurred during the second quarter of 2025 in Hudson Pacific Properties, Inc.'s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[312](index=312&type=chunk) [Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, L.P.)](index=72&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting%20(Hudson%20Pacific%20Properties%2C%20L.P.)) Reports no material changes in Hudson Pacific Properties, L.P.'s internal control over financial reporting during Q2 2025 - There were no changes that occurred during the second quarter of 2025 in Hudson Pacific Properties, L.P.'s internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[313](index=313&type=chunk) [PART II—OTHER INFORMATION](index=73&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) This part provides other information, including legal proceedings, risk factors, equity sales, defaults, and exhibits [ITEM 1. Legal Proceedings](index=73&type=section&id=ITEM%201.%20Legal%20Proceedings) The Company is not involved in any material legal proceedings expected to adversely affect its business or financial condition - The Company is not currently a party to any legal proceedings that are believed to be material or that would be expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows[315](index=315&type=chunk) [ITEM 1A. Risk Factors](index=73&type=section&id=ITEM%201A.%20Risk%20Factors) This section reports no material changes to the risk factors previously disclosed in the Company's 2024 Annual Report - There have been no material changes to the risk factors included in the section entitled "Risk Factors" in the Company's 2024 Annual Report on Form 10-K[316](index=316&type=chunk) [ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered equity sales by the operating partnership and Company, and the use of proceeds from a public offering - During Q2 2025, the operating partnership issued partnership units in private placements. The Company issued **208,178** shares of common stock upon vesting of restricted stock awards, with **3,166** shares forfeited for tax withholding[317](index=317&type=chunk) - A public offering closed on June 13, 2025, selling **237,553,442** common shares and pre-funded warrants for **71,863,597** shares, generating **$689.3 million** in gross proceeds (**$656.9 million** net). The proceeds were used to fully repay the unsecured revolving credit facility and for general corporate purposes[319](index=319&type=chunk)[320](index=320&type=chunk) - During Q2 2025, **3,166** shares of common stock were remitted to satisfy tax withholding obligations in connection with the vesting of restricted stock units, at an average price of **$2.74** per share[322](index=322&type=chunk) [ITEM 3. Defaults Upon Senior Securities](index=74&type=section&id=ITEM%203.%20Defaults%20Upon%20Senior%20Securities) The Company reported no defaults upon senior securities during the reporting period - There were no defaults upon senior securities during the period[324](index=324&type=chunk) [ITEM 4. Mine Safety Disclosures](index=74&type=section&id=ITEM%204.%20Mine%20Safety%20Disclosures) The Company reported no mine safety disclosures - There were no mine safety disclosures[325](index=325&type=chunk) [ITEM 5. Other Information](index=74&type=section&id=ITEM%205.%20Other%20Information) No officers or directors adopted or terminated Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - During the three months ended June 30, 2025, none of the Company's officers or directors adopted or terminated any Rule 10b5-1 trading arrangements[326](index=326&type=chunk) [ITEM 6. Exhibits](index=75&type=section&id=ITEM%206.%20Exhibits) This section lists all exhibits filed with Form 10-Q, including organizational documents, plans, agreements, certifications, and XBRL data - Exhibits include Articles of Amendment, Bylaws, Partnership Agreements, Form of Pre-Funded Warrant, Incentive Award Plan, Registration Rights Agreement, and various certifications (302, 906). Financial information is provided in iXBRL format[330](index=330&type=chunk) [SIGNATURES](index=76&type=section&id=SIGNATURES) This section contains the official signatures of the Chief Executive Officer and Chief Financial Officer, certifying the report - The report was signed by Victor J. Coleman (Chief Executive Officer) and Harout K. Diramerian (Chief Financial Officer) for both Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. on August 7, 2025[334](index=334&type=chunk)[335](index=335&type=chunk)[339](index=339&type=chunk)[340](index=340&type=chunk)

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]