Hudson Pacific Properties(US:HPP)2025-11-05 14:00Financial 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]