Financial Data and Key Metrics Changes - The company's Q1 2025 revenue was $198.5 million, down from $214 million in Q1 2024, attributed to asset sales and lower office occupancy [29] - FFO excluding specified items was $12.9 million or $0.09 per diluted share, compared to $24.2 million or $0.17 per diluted share a year ago [29][30] - Same store cash NOI decreased to $93.2 million from $103.4 million year over year, primarily due to lower office occupancy [30] Business Line Data and Key Metrics Changes - The company signed 630,000 square feet of new and renewal leases in Q1 2025, the highest quarterly leasing activity since Q2 2022 [17] - GAAP rents increased by 4.8%, while cash rents decreased by 13.6% [17] - The leasing pipeline increased by 5% to 2.1 million square feet, with 716,000 square feet in late-stage deals [21] Market Data and Key Metrics Changes - San Francisco's office leasing activity saw a significant increase, with gross leasing just under 3 million square feet in Q1 2025 [9] - Downtown Seattle experienced a 15% increase in gross leasing, despite a 90 basis point increase in direct vacancy [10] - The Bay Area received nearly 70% of U.S. venture funding, totaling $59 billion, marking a fourfold year-over-year increase [7] Company Strategy and Development Direction - The company is focusing on maximizing flexibility and occupancy while monitoring tariff impacts on core industries [6] - There is a strategic reevaluation of adaptive reuse of office assets due to new financial and zoning incentives for residential conversions [10] - The company is actively pursuing non-strategic asset sales to generate liquidity and reduce leverage, with $97 million generated from recent sales [15] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about improving market fundamentals and the potential positive impact of federal investments in AI [6][7] - The company expects occupancy to stabilize and grow starting in Q3 2025, with only 225,000 square feet expiring on average each quarter thereafter [22] - Management anticipates FFO per diluted share for Q2 2025 to range from $0.03 to $0.07, reflecting lower office NOI and higher interest expenses [33] Other Important Information - The company completed a CMBS financing for $475 million, using proceeds to repay a $168 million loan and for general corporate purposes [30] - The company is in discussions for potential long-term tenants for the Sunset Pier 94 Studios, expected to deliver by year-end [26] - The company has made significant progress in cost-cutting initiatives, achieving a total run rate savings of $14.2 million annually [25] Q&A Session Summary Question: Comments on cash rent spreads and concessions trends - Management indicated that cash rent spreads were in line with expectations, with net effective rents holding up well compared to pre-pandemic levels [36][38] Question: Impact of tariffs on the studio business - Management noted no significant impact from tariffs on tenant interest and highlighted potential federal support for the studio industry [42][43] Question: Paydown of private placement notes - Management confirmed the use of the revolver to pay down Series B notes, with plans to extend the revolver beyond 2026 [46][48] Question: Guidance on asset sales - Management stated that the guidance of $125 million to $150 million in asset sales is conservative and reflects non-core assets [49][50] Question: Expectations for occupancy and leasing pipeline - Management expects occupancy to improve starting in Q3 2025, with a strong leasing pipeline and increased tour activity [62][64] Question: Debt covenants and NOI to interest expense coverage - Management confirmed compliance with covenants and expects to maintain coverage despite fluctuations [85][86] Question: Production leads on the studio side - Management mentioned two executed production leads, both involving two stages with support space, indicating a positive trend in longer-term leases [92]

[First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) [Highlights & Management Commentary](index=1&type=section&id=Highlights%20%26%20Management%20Commentary) The company reported strong leasing activity and liquidity, focusing on strategic asset sales and debt reduction amid AI-driven demand - Signed **630,000 square feet** of leases and ended the quarter with **$839 million** of liquidity[1](index=1&type=chunk) - The office leasing pipeline increased to **2.1 million square feet**, with over 700,000 square feet in later-stage deals[3](index=3&type=chunk) - Management noted record venture capital flows into West Coast AI companies, which are expected to drive office demand[3](index=3&type=chunk) - The company is executing on a strategy of asset sales, cost savings, and debt reduction to improve its financial position[4](index=4&type=chunk) [Financial Results (Q1 2025 vs Q1 2024)](index=1&type=section&id=Financial%20Results%20Compared%20to%20First%20Quarter%202024) Key financial metrics declined year-over-year due to asset sales, lower occupancy, and one-time expenses Q1 2025 vs. Q1 2024 Financial Comparison | Metric | Q1 2025 | Q1 2024 | Change Driver | | :--- | :--- | :--- | :--- | | Total Revenue | $198.5M | $214.0M | Asset sales, lower office occupancy | | Net Loss Attributable to Common Stockholders | $(74.7)M or $(0.53)/share | $(52.2)M or $(0.37)/share | Lower revenue, one-time costs, impairment | | FFO (excl. specified items) | $12.9M or $0.09/share | $24.2M or $0.17/share | Lower revenue | | FFO | $3.1M or $0.02/share | $22.0M or $0.15/share | Lower revenue, one-time costs | | AFFO | $1.7M or $0.01/share | $28.5M or $0.19/share | Lower FFO, increased recurring capital expenditures | | Same-Store Cash NOI | $93.2M | $103.4M | Lower office occupancy | - The wider net loss was significantly impacted by one-time lease termination fees from Quixote cost-cutting and a non-cash impairment related to a potential asset sale[5](index=5&type=chunk) [Operational & Portfolio Update](index=2&type=section&id=Operational%20%26%20Portfolio%20Update) The company executed significant leasing activity but saw a decline in office occupancy while advancing its asset disposition strategy - **Leasing Activity:** - Executed 62 new and renewal leases totaling **630,295 square feet**[10](index=10&type=chunk) - Signed a significant 20-year, **232,000 square foot lease** with the City and County of San Francisco at 1455 Market[10](index=10&type=chunk) - GAAP rents increased **4.8%**, while cash rents decreased **13.6%** from prior levels, largely due to San Francisco leasing activity[10](index=10&type=chunk) - **Portfolio Occupancy:** - In-service office portfolio occupancy ended the quarter at **75.1%**, down from 78.3% in Q4 2024[10](index=10&type=chunk) - In-service studio portfolio was **73.8% leased** on a trailing 12-month basis, in line with the prior quarter[10](index=10&type=chunk) - **Asset Dispositions:** - Sold two office properties (Foothill Research Center and Maxwell) for an aggregate of **$69.0 million**[10](index=10&type=chunk) - Entered into a contract to sell 625 Second in San Francisco for **$28.0 million** subsequent to quarter-end[10](index=10&type=chunk) - **Dividend:** - The Board of Directors declared and paid a dividend of **$0.296875 per share** on its 4.750% Series C cumulative preferred stock[9](index=9&type=chunk) [Balance Sheet and Liquidity](index=2&type=section&id=Balance%20Sheet%20and%20Liquidity) The company maintained strong liquidity of $838.5 million and actively managed its debt profile with no maturities until late 2025 - Total liquidity was **$838.5 million**, comprising $86.5 million in unrestricted cash and $752.0 million of undrawn capacity on its revolving credit facility[10](index=10&type=chunk) - Completed a **$475 million** commercial mortgage-backed securities (CMBS) financing with a five-year term, using proceeds to repay a $168 million loan and reduce borrowings on the credit facility[10](index=10&type=chunk) - HPP's share of net debt to undepreciated book value was **39.0%**, with **85.4%** of debt being fixed or capped[10](index=10&type=chunk) - Subsequent to the quarter, the company tendered for the repayment of all private placement notes (Series B, C, and D), totaling over **$304.0 million**[10](index=10&type=chunk) [2025 Outlook](index=3&type=section&id=2025%20Outlook) The company issued Q2 2025 FFO guidance of $0.03 to $0.07 per share and updated full-year assumptions, projecting a decline in same-store cash NOI - Provides FFO outlook for Q2 2025 of **$0.03 to $0.07** per diluted share[11](index=11&type=chunk) Full Year 2025 Assumptions (Unaudited, in thousands) | Metric | Low | High | | :--- | :--- | :--- | | Growth in same-store property cash NOI | (13.50)% | (12.50)% | | GAAP non-cash revenue | $8,500 | $13,500 | | General and administrative expenses | $(67,000) | $(73,000) | | Interest expense | $(185,000) | $(195,000) | | FFO from unconsolidated joint ventures | $1,000 | $3,000 | | Weighted average common stock/units outstanding—diluted | 146,500,000 | 147,500,000 | [Financial Statements & Reconciliations](index=5&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section provides detailed unaudited financial statements and non-GAAP reconciliations for the period ended March 31, 2025 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Total assets were approximately $8.0 billion and total equity was $3.04 billion as of March 31, 2025, both showing slight declines Consolidated Balance Sheet Highlights (in thousands) | Account | 3/31/25 (Unaudited) | 12/31/24 | | :--- | :--- | :--- | | Investment in real estate, net | $6,356,453 | $6,442,178 | | Cash and cash equivalents | $86,474 | $63,256 | | **Total Assets** | **$7,998,391** | **$8,132,239** | | Unsecured and secured debt, net | $4,178,343 | $4,176,844 | | **Total Liabilities** | **$4,903,235** | **$4,954,508** | | **Total Equity** | **$3,038,385** | **$3,118,637** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, the company reported revenues of $198.5 million and a net loss of $74.7 million, wider than the prior year Consolidated Operations Highlights (in thousands, except per share data) | Account | Three Months Ended 3/31/25 | Three Months Ended 3/31/24 | | :--- | :--- | :--- | | Total Revenues | $198,459 | $214,023 | | Total Operating Expenses | $224,826 | $221,620 | | Impairment loss | $(18,476) | $— | | Net Loss | $(80,278) | $(53,355) | | **Net Loss Attributable to Common Stockholders** | **$(74,708)** | **$(52,202)** | | **Net Loss per Share - diluted** | **$(0.53)** | **$(0.37)** | [Funds from Operations (FFO)](index=7&type=section&id=Funds%20from%20Operations%20(FFO)) Q1 2025 FFO was $3.1 million, or $12.9 million excluding specified items, a significant decrease from the prior year FFO Reconciliation Highlights (in thousands, except per share data) | Metric | Three Months Ended 3/31/25 | Three Months Ended 3/31/24 | | :--- | :--- | :--- | | FFO to common stock/unit holders | $3,058 | $22,041 | | FFO per common stock/unit—diluted | $0.02 | $0.15 | | FFO (excluding specified items) to common stock/unit holders | $12,865 | $24,191 | | FFO (excluding specified items) per common stock/unit—diluted | $0.09 | $0.17 | [Adjusted Funds from Operations (AFFO)](index=8&type=section&id=Adjusted%20Funds%20from%20Operations%20(AFFO)) AFFO for Q1 2025 was $1.7 million, a sharp decline from $28.5 million in Q1 2024, driven by lower FFO and higher capital expenditures AFFO Highlights (in thousands, except per share data) | Metric | Three Months Ended 3/31/25 | Three Months Ended 3/31/24 | | :--- | :--- | :--- | | FFO (excluding specified items) | $12,865 | $24,191 | | Recurring capital expenditures, TIs & commissions | $(29,658) | $(15,743) | | **AFFO** | **$1,711** | **$28,491** | | **AFFO per common stock/unit—diluted** | **$0.01** | **$0.19** | [Net Operating Income (NOI)](index=9&type=section&id=Net%20Operating%20Income%20(NOI)) Total NOI was $85.2 million, while same-store cash NOI was $93.2 million, both declining year-over-year due to lower occupancy NOI Reconciliation Highlights (in thousands) | Metric | Three Months Ended 3/31/25 | Three Months Ended 3/31/24 | | :--- | :--- | :--- | | Net Loss | $(80,278) | $(53,355) | | **NOI** | **$85,201** | **$103,967** | | Cash NOI | $86,305 | $107,552 | | **Same-store cash NOI** | **$93,198** | **$103,395** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 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.) Commission file number 333-202799-01 (Hudson Pacific Properties, L.P.) Hudson Pacifi ...

Financial Data and Key Metrics Changes - The fourth quarter 2024 revenue was $209.7 million, down from $223.4 million in the same quarter last year, primarily due to the sale of One Westside and a tenant moving out of Maxwell [36] - Fourth quarter FFO, excluding specified items, was $15.5 million or $0.11 per diluted share, compared to $19.6 million or $0.14 per diluted share a year ago [36][37] - Same-store cash NOI was $94.2 million, down from $106.3 million in the fourth quarter last year, mainly due to lower office occupancy [38] Business Line Data and Key Metrics Changes - Office leasing increased nearly 20% year-over-year, with over 2 million square feet of signed leases, including 1.2 million square feet of new leasing [9][10] - The trailing 12-month net effective rents were 2% lower year-over-year and 8% lower than pre-pandemic levels, while net effective rents on new deals were up 18% year-over-year [24] - Studio revenues increased by $2 million compared to the prior quarter, driven by increased production activity [30] Market Data and Key Metrics Changes - San Francisco and Silicon Valley achieved positive net absorption in the fourth quarter, marking record years for gross leasing post-pandemic [12] - Fourth quarter venture funding reached $75 billion, the highest since Q2 2022, driven by interest in AI [13] - The Bay Area received 53% of global AI venture funding in 2024, indicating strong demand for office space from AI companies [14] Company Strategy and Development Direction - The company aims to reinvigorate earnings growth through strategic priorities such as office and studio leasing, property sales, and cost containment [7][8] - The focus remains on enhancing the balance sheet and pursuing asset sales, with $94 million generated from recent sales [11][22] - The company is optimistic about the film and television industry in Los Angeles, particularly with proposed tax credits to boost local production [17][18] Management's Comments on Operating Environment and Future Outlook - Management noted that despite macro uncertainties, businesses are poised to benefit from pro-growth policies, with tech layoffs at their lowest since Q1 2022 [15][16] - The company expects office portfolio occupancy to stabilize in the second half of 2025, driven by new leasing activity [28] - For 2025, the company anticipates same-store property cash NOI growth of negative 12.5% to 13.5%, reflecting lower occupancy in the first half of the year [46] Other Important Information - The company amended its credit facility to improve covenant performance and maintain liquidity, with total liquidity of $518.3 million [40][42] - The Quixote business is undergoing cost-cutting measures, with $7.5 million in annual savings expected [32][68] Q&A Session Summary Question: How are the fundamentals firming up in office leasing? - Management indicated that tours and the leasing pipeline are up, with average deal sizes increasing, suggesting a positive trend [51][52] Question: What is the current status of secured financing? - Management is confident in the ongoing processes for multiple financing events, expecting positive outcomes soon [55] Question: Can you provide insights on the leasing pipeline and tenant types? - Management expressed confidence in closing deals, noting an increase in late-stage LOIs and leases, with urgency from tenants returning to the office [62][63] Question: What are the expectations for occupancy trends this year? - Management expects a dip in occupancy in the first quarter due to expirations but anticipates recovery in the following quarters [106][107] Question: How does the company view the Quixote business after the impairment? - Management clarified that the impairment is a GAAP requirement and does not reflect the actual value of the business, maintaining confidence in its future [97][99]

Hudson Pacific Properties (HPP) reported $209.67 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 6.2%. EPS of $0.11 for the same period compares to -$0.70 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $208.66 million, representing a surprise of +0.48%. The company delivered an EPS surprise of +10.00%, with the consensus EPS estimate being $0.10.While investors closely watch year-over-year changes in headline numbers -- revenue an ...

Hudson Pacific Properties (HPP) came out with quarterly funds from operations (FFO) of $0.11 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to FFO of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of 10%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.11 per share when it actually produced FFO of $0.10, delivering a surprise of -9.09%.Over the last f ...

Financial Performance - Total revenue for Q4 2024 was $209.7 million, down from $223.4 million in Q4 2023, primarily due to the sale of One Westside and a tenant move-out at Maxwell[4] - Net loss attributable to common stockholders was $167.0 million, or $1.18 per diluted share, compared to a net loss of $98.0 million, or $0.70 per diluted share in the prior year[4] - FFO, excluding specified items, was $15.5 million, or $0.11 per diluted share, down from $19.6 million, or $0.14 per diluted share in Q4 2023[4] - Total revenues for the year ended 12/31/24 decreased to $842,082,000, down 11.6% from $952,297,000 for the year ended 12/31/23[24] - Net loss attributable to common stockholders for the year ended 12/31/24 was $364,143,000, compared to a net loss of $192,181,000 for the year ended 12/31/23, representing an increase in loss of 89.5%[24] - For the three months ended December 31, 2024, Hudson Pacific Properties reported a net loss of $173,481,000 compared to a net loss of $88,654,000 for the same period in 2023[25] - Funds from Operations (FFO) attributable to common stock/unit holders was $(93,020,000) for Q4 2024, a decrease from $12,779,000 in Q4 2023[25] - Adjusted Funds from Operations (AFFO) for the year ended December 31, 2024, was $67,104,000, down from $115,669,000 in 2023[30] Operational Metrics - Same-store cash NOI decreased to $94.2 million from $106.3 million, primarily due to lower office portfolio occupancy[5] - The in-service office portfolio ended Q4 2024 at 78.3% occupied and 78.9% leased, compared to 79.1% occupied and 80.0% leased in the prior quarter[10] - Executed 76 new and renewal leases totaling 441,924 square feet, including a new lease with Salesforce for 83,000 square feet[10] - Same-store office cash revenues decreased to $157,370,000 in Q4 2024 from $168,873,000 in Q4 2023, reflecting a decline of approximately 6.5%[31] - Hudson Pacific Properties' same-store revenues for the three months ended December 31, 2024, totaled $172,687,000, down from $175,138,000 in the same period of 2023[31] Liquidity and Assets - The company had $518.3 million of total liquidity as of December 31, 2024, including $63.3 million of unrestricted cash[10] - Cash and cash equivalents decreased to $63,256,000 as of 12/31/24, down 37% from $100,391,000 as of 12/31/23[23] - Total assets decreased to $8,132,239,000 as of 12/31/24, down 1.8% from $8,282,050,000 as of 12/31/23[23] - Total liabilities increased to $4,954,508,000 as of 12/31/24, up 4.9% from $4,720,881,000 as of 12/31/23[23] Impairments and Expenses - The company reported an impairment loss of $149,664,000 for the year ended 12/31/24, compared to $60,158,000 for the year ended 12/31/23[24] - The company reported a goodwill impairment of $107,615,000 for the year ended December 31, 2024[25] - The company incurred transaction-related expenses of $2,306,000 for the year ended December 31, 2024[30] Future Outlook - The company provided an FFO outlook for Q1 2025 of $0.07 to $0.11 per diluted share[10] - The company anticipates a same-store property cash NOI growth decline of between (13.50)% and (12.50)% for the full year 2025[13] - The company plans to continue executing on asset sales and seek additional cost savings to strengthen its balance sheet in 2025[2] Depreciation and Stock Metrics - Total depreciation and amortization for the year ended December 31, 2024, was $354,425,000, down from $397,846,000 in 2023[25] - The weighted average shares of common stock outstanding for the year ended 12/31/24 were 141,193,000, slightly up from 140,953,000 for the year ended 12/31/23[24] - The weighted average common stock/units outstanding—diluted for the year ended December 31, 2024, was 145,603,000, slightly up from 144,552,000 in 2023[25]

Wall Street analysts expect Hudson Pacific Properties (HPP) to post quarterly earnings of $0.10 per share in its upcoming report, which indicates a year-over-year decline of 28.6%. Revenues are expected to be $209.16 million, down 6.4% from the year-ago quarter.Over the last 30 days, there has been a downward revision of 33.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the cours ...

Financial Data and Key Metrics Changes - The third quarter 2024 revenue was $200.4 million, down from $231.4 million in the same quarter last year, primarily due to the sale of One Westside and the expiration of the Block lease at 1455 Market [36] - Third quarter FFO, excluding specified items, was $14.3 million or $0.10 per diluted share, compared to $26.1 million or $0.18 per diluted share a year ago [37] - Third quarter AFFO was $15.8 million or $0.11 per diluted share, down from $28.1 million or $0.20 per diluted share in the same quarter last year [39] - Same-store cash NOI was $96.9 million, compared to $113.2 million in the third quarter last year, mainly due to tenant move-outs [39] Business Line Data and Key Metrics Changes - The leasing team signed 539,000 square feet of office leases in the third quarter, with 56% being new deals, bringing the year-to-date total to 1.6 million square feet, which is 25% ahead of the same time last year [20] - Occupancy increased sequentially by 40 basis points to 79.1%, with a consistent lease percentage at 80% [20] - Studio revenue in the third quarter was $5.6 million higher compared to the previous year, despite a sequential decline of $8.5 million due to lower average production levels [32] Market Data and Key Metrics Changes - Tenant requirements in West Coast tech-centric office markets increased by 17% year-over-year, compared to just 7% for the broader U.S. office market [11] - Downtown San Francisco experienced positive net absorption for Class A product for the first time in two years, with year-to-date overall gross leasing being the highest since 2019 [12] - Seattle saw overall requirements up about 30% year-over-year, indicating a recovery in midsized demand [12] Company Strategy and Development Direction - The company is focusing on capital recycling, with plans to sell non-core office assets to maximize value, expecting gross proceeds of $200 million to $225 million from ongoing negotiations [18] - The company is optimistic about the potential impact of proposed tax credit legislation in California, which could enhance production demand in the studio segment [14] - The company aims to stabilize and grow occupancy and cash flow across its portfolio in 2025, leveraging improved leasing activity and market conditions [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that the tide is turning in the office market, with positive indicators emerging and expectations for stabilization and growth in 2025 [6] - The management noted that tech layoffs have declined significantly, and venture funding is picking up, which could serve as a catalyst for leasing activity [9] - The company anticipates lower office occupancy in the fourth quarter due to a full building tenant vacating, but believes occupancy would have shown another sequential increase without this event [43] Other Important Information - The company has no debt maturing until November 2025, with a liquidity position of $696 million at the end of the third quarter [41] - The company is actively pursuing multiple paths to increase liquidity, including asset sales and joint venture partnerships [40] Q&A Session Summary Question: Can you discuss the drivers behind the accelerated effort on asset sales? - Management indicated that the assets being sold are non-core and not aligned with long-term strategy, with three sales under contract and three more in negotiation, expected to generate $200 million to $225 million [48][49] Question: How has the movement out of LA affected studio production? - Management believes LA remains the entertainment capital and anticipates an uptick in production due to proposed tax credits and city initiatives [51][52] Question: What is the outlook for debt refinancing? - Management is in discussions for secured debt refinancing and is confident about executing it well before expiration at the end of 2025 [56] Question: Is the $0.11 in the fourth quarter a reasonable run rate for next year? - Management advised against using $0.11 as a run rate for next year, suggesting it would be higher due to expected improvements in the entertainment business [59] Question: What is the coverage on lease expirations? - Management stated that the coverage on remaining expirations is 37%, increasing to 55% when accounting for leases and discussions [30]

For the quarter ended September 2024, Hudson Pacific Properties (HPP) reported revenue of $200.39 million, down 13.4% over the same period last year. EPS came in at $0.10, compared to -$0.27 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $208.94 million, representing a surprise of -4.09%. The company delivered an EPS surprise of -9.09%, with the consensus EPS estimate being $0.11.While investors scrutinize revenue and earnings changes year-over-year and how they com ...