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Jun 30, 2023
Hudson Pacific Q2 2023 Earnings Report
Reported financial results for the second quarter of 2023.
Key Takeaways
Hudson Pacific Properties reported a decrease in total revenue to $245.2 million compared to $251.4 million in the same quarter of the previous year. The company experienced a net loss attributable to common stockholders of $36.2 million, or $0.26 per diluted share, compared to a net loss of $7.4 million, or $0.05 per diluted share, in the second quarter of 2022.
Total revenue was $245.2 million, down from $251.4 million year-over-year, due to vacancies at Skyport Plaza and 10900-10950 Washington and the sales of 6922 Hollywood and Skyway Landing.
Net loss attributable to common stockholders was $36.2 million, or $0.26 per diluted share, compared to a net loss of $7.4 million, or $0.05 per diluted share, year-over-year.
FFO, excluding specified items, was $34.5 million, or $0.24 per diluted share, compared to $74.6 million, or $0.51 per diluted share, in the prior year.
Same-store cash NOI increased by 4.7% to $127.6 million compared to $121.9 million in the same period last year, primarily due to office lease commencements at One Westside and Harlow Leasing.
Hudson Pacific
Hudson Pacific
Hudson Pacific Revenue by Segment
Revenue by Segment
Office Revenue
CapyFin.comStudio Revenue
CapyFin.com Forward Guidance
Due to continued uncertainty around the duration of the studio-related union strikes, the Company will continue to provide certain assumptions relevant to its full-year 2023 office outlook, but has not reinstated its 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 $13,500 and $23,500.
- GAAP non-cash expense (straight-line rent expense and above/below-market ground rent) between $(7,100) and $(9,100).
- General and administrative expenses between $(70,000) and $(76,000).
- Interest expense between $(212,000) and $(222,000).
Challenges Ahead
- The Company will continue to provide certain assumptions relevant to its full-year 2023 office outlook.
- The Company has not reinstated its outlook for 2023 full-year FFO.
- The Company has not reinstated its outlook for studio-related assumptions.
- Current assumptions reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements.
- There can be no assurance that actual results will not differ materially from these estimates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income