Hudson Pacific Properties (HPP) saw its stock price plummet 5.78% in pre-market trading on Wednesday following the release of its third-quarter 2025 financial results, which fell short of analyst expectations. The real estate investment trust, focused on office and studio properties, reported lower revenue and a wider net loss, raising concerns among investors about the company's near-term prospects.

The company reported total revenue of $186.6 million for Q3, missing the analyst consensus estimate of $196.4 million and representing a 6.87% decrease from the same period last year. Hudson Pacific attributed the decline to asset sales and lower office occupancy. The net loss for the quarter widened significantly to $136.5 million, or $0.30 per share, compared to the previous year.

Adding to investor concerns, Hudson Pacific provided a cautious outlook for the fourth quarter, projecting funds from operations (FFO) of $0.01 to $0.05 per diluted share. This guidance range falls below the average analyst expectation of $0.04 per share, suggesting ongoing challenges in the company's core markets. Despite highlighting over 500,000 square feet of office leasing in Q3, with 80% in the Bay Area driven by demand from AI and tech companies, the market appears skeptical about the company's ability to overcome headwinds in the commercial real estate sector.