Loading...
•
Mar 31, 2023
Hudson Pacific Q1 2023 Earnings Report
Hudson Pacific reported financial results, showing revenue increase driven by the acquisition of Quixote, but also a net loss due to higher interest expense and lower production activity.
Key Takeaways
Hudson Pacific Properties reported a mixed first quarter of 2023, with revenue increasing by 3.2% year-over-year to $252.3 million, primarily due to the acquisition of Quixote. However, the company experienced a net loss attributable to common stockholders of $20.4 million, or $0.14 per diluted share, compared to a net loss of $19.8 million, or $0.13 per diluted share in the same period last year. The company is also working to minimize the impact of the national writers strike as it relates to its studio business.
Total revenue increased by 3.2% to $252.3 million compared to the first quarter of 2022.
Net loss attributable to common stockholders was $20.4 million, or $0.14 per diluted share.
FFO, excluding specified items, was $49.7 million, or $0.35 per diluted share, compared to $75.2 million, or $0.50 per diluted share in the prior year.
Executed 75 new and renewal leases totaling 344,069 square feet, with over 80% of that activity in the San Francisco Bay Area.
Hudson Pacific
Hudson Pacific
Hudson Pacific Revenue by Segment
Revenue by Segment
Office Revenue
CapyFin.comStudio Revenue
CapyFin.com Forward Guidance
The Company's 2023 full-year FFO outlook excluded the impact of a disruption in studio operations in the event related union negotiations led to a strike and halt in production. Due to the uncertainty around the duration of a strike, the Company will continue to provide certain assumptions relevant to its full year 2023 office outlook, but will no longer provide an outlook for 2023 full-year FFO or studio-related assumptions.
Positive Outlook
- Growth in office same-store cash NOI between 1.00% and 2.00%.
- GAAP non-cash revenue (straight-line rent and above/below-market rents) between $18,000 and $28,000.
- General and administrative expenses between $(70,000) and $(76,000).
- Interest expense between $(204,000) and $(214,000).
- Weighted average common stock/units outstanding—diluted between 143,000,000 and 144,000,000.
Challenges Ahead
- GAAP non-cash expense (straight-line rent expense and above/below-market ground rent) between $(7,100) and $(9,100).
- Non-real estate depreciation and amortization between $(34,000) and $(36,000).
- FFO from unconsolidated joint ventures between $500 and $2,500.
- FFO attributable to non-controlling interests between $(43,500) and $(47,500).
- FFO attributable to preferred units/shares between $(21,000) and $(21,000).
Revenue & Expenses
Visualization of income flow from segment revenue to net income