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Mar 31, 2024
Hudson Pacific Q1 2024 Earnings Report
Hudson Pacific reported financial results with office leasing momentum accelerating and over 500,000 square feet of leases signed.
Key Takeaways
Hudson Pacific Properties reported a challenging first quarter in 2024, marked by a decrease in total revenue to $214.0 million compared to $252.3 million in the same period last year. The company experienced a net loss attributable to common stockholders of $52.2 million, or $0.37 per diluted share, which is a significant increase from the net loss of $20.4 million, or $0.14 per diluted share, in the first quarter of 2023. Despite these financial headwinds, the company saw strong office leasing activity, signing over 500,000 square feet of leases.
Total revenue decreased to $214.0 million from $252.3 million year-over-year, impacted by asset sales and lower occupancy.
Net loss attributable to common stockholders was $52.2 million, or $0.37 per diluted share, compared to a net loss of $20.4 million, or $0.14 per diluted share, in the prior year.
FFO, excluding specified items, was $24.2 million, or $0.17 per diluted share, down from $49.7 million, or $0.35 per diluted share, in the first quarter of 2023.
Executed 73 new and renewal leases totaling 508,615 square feet.
Hudson Pacific
Hudson Pacific
Hudson Pacific Revenue by Segment
Revenue by Segment
Office Revenue
CapyFin.comStudio Revenue
CapyFin.com Forward Guidance
Hudson Pacific is providing an FFO outlook of $0.15 to $0.19 per diluted share for the second quarter and updating key assumptions for its full-year 2024 FFO outlook, including same-store property cash NOI growth.
Positive Outlook
- Office leasing momentum
- Gradual improvements within the office operating environment
- Long-term leases
- Swift return of productions filming prior to the WGA and SAG-AFTRA strikes at in-service studio assets
- Assumes IATSE and Teamsters do not strike, and production begins to pick up in early June following successful resolution of IATSE contract negotiations.
Challenges Ahead
- Film and television industry has recovered far more slowly than anticipated post-strikes.
- Pending expiration of the IATSE and Teamsters Local 399 union contracts in May and July, respectively
- Logistical and resource constraints as multiple productions attempt to re-start simultaneously
- Industry consolidation and shifting business models as networks pursue profitability.
- Limited visibility as to the precise impact of each of these factors presents challenges to estimating how and when production counts will normalize, and, by extension, cash flow related to the Quixote business
Revenue & Expenses
Visualization of income flow from segment revenue to net income