Overview

• Hudson Pacific Q3 revenue misses analyst expectations, declining due to asset sales and lower occupancy

• Net loss for Q3 widens, largely due to deconsolidation of Sunset Glenoaks

• Company highlights over 500,000 sq ft of office leasing, 80% in Bay Area

Outlook

• Company provides 4Q FFO outlook of $0.01 to $0.05 per diluted share

• Company updates full-year assumptions with same-store cash NOI decline of 11.5%-12.5%

• Outlook excludes impacts from new acquisitions or debt financings

Result Drivers

• LEASING ACTIVITY - Over 500,000 sq ft of office space leased in Q3, with 80% in the Bay Area, driven by demand from AI and tech companies

• COST SAVINGS - General and administrative expenses improved by 30% compared to last year due to cost-savings initiatives

• LIQUIDITY POSITION - Company reports $1 bln of liquidity at quarter end, with 100% of debt fixed or capped and no maturities until 2026

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Hudson Pacific Properties Inc is $3.05, about 26.2% above its November 4 closing price of $2.25

Press Release: ID:nBw3BC64Ta

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)