Hudson Pacific Properties (HPP.N): West Coast Office Recovery Underway; HPP Beats & Raises

研报英文原文证据摘录

Flash |

05 Aug 2026 11:55:00 ET │ 15 pages

Hudson Pacific Properties (HPP.N)

West Coast Office Recovery Underway; HPP Beats & Raises

CITI'S TAKE

HPP printed a strong 2Q26 core FFO of 35c beating the Street (28c) by

+7c/+25% and Citi (29c) by +6c/+21%. HPP raised 2026 FFO guidance

+2c/~1.8% to $1.12-$1.20 from $1.10-$1.18, driven by a ~1.5c

improvement in G&A savings, with the majority of other items

underpinning guidance unchanged. The 2026 revised core FFO range is

+2c/~1.8% ahead of consensus expectations. The focus is likely on the

leasing momentum, with HPP putting up a 4rd consecutive quarter of

occupancy gains (in-service occupancy of 82.5% is +470bps sequentially),

executing on ~1.3msf of leasing activity, including the previously

announced 891ksf of new and renewal leases with the City and County of

San Francisco. Overall, the print is constructive, and further upside or

downside likely rests on the 8/26 Hollywood CMBS refinancing outcome

(matures in 4 days), and updates around Washington 1000 leasing which

we expect may be addressed on the call.

Results — HPP reported 2Q core FFO of 35c, +6c ( ~21%) above Citi at 29c and +7c

(+25%) above consensus (FactSet) at 28c. Core NOI was +3c ahead of our

expectations, driven by +10c of better-than-expected office NOI and +2c of betterthan-expected in-service studio NOI, offset by lower-than-assumed Quixote NOI.

Neutral

Price (04 Aug 26 16:00)

US$13.98

Target price

US$13.00

Expected share price return

-7.0%

Expected dividend yield

0.0%

Expected total return

-7.0%

Market Cap

US$758M

Seth Bergey, CPA, CFA

Nick JosephAC

Lauren R McNichol

FY 2026 Guidance Raised — HPP raised FY26 core FFO guidance to $1.12 – $1.20

(previous range $1.10 – $1.18), a +2c (~2%) increase to a midpoint of $1.16; +2c (~2%)

above both Citi and consensus (FactSet) at $1.14. The updated range excludes the

announced closures of Quixote’s stage and Atlanta operations from Core FFO.

Additionally, HPP reduced G&A guidance -$1M to a midpoint of $51.5M. Other key

drivers of the guidance remained unchanged, including average in-service office

occupancy of 80-82%, cash SSNOI growth of (1.75)%-(0.75)%, and interest expense

of $155M at the midpoint.…