Hudson Pacific Properties (NYSE: HPP) saw its stock price plummet by 5.78% in pre-market trading on Wednesday following the release of its third-quarter 2025 financial results. The real estate investment trust reported disappointing numbers, missing analyst expectations and showing signs of ongoing challenges in the office property market.

The company's Q3 revenue came in at $186.6 million, falling short of the IBES estimate of $196.4 million and marking a decline from $200.4 million in the same period last year. This decrease was primarily attributed to asset sales and lower office occupancy. More concerning for investors was the widened net loss, which reached $136.5 million for the quarter, translating to a loss of $0.30 per share.

Despite some positive developments, including over 500,000 square feet of office leasing in Q3 (with 80% in the Bay Area) and a 30% reduction in general and administrative expenses, the overall financial picture remained gloomy. The company's same-store cash net operating income (NOI) declined to $89.3 million from $100.0 million in the previous year, reflecting the ongoing challenges in the commercial real estate sector. Looking ahead, Hudson Pacific provided a cautious Q4 FFO outlook of $0.01 to $0.05 per diluted share, further contributing to investor concerns and the subsequent stock price decline.