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Jun 30, 2024
Hudson Pacific Q2 2024 Earnings Report
Reported financial results for the second quarter of 2024.
Key Takeaways
Hudson Pacific Properties reported a total revenue of $218.0 million and a net loss attributable to common stockholders of $47.0 million, or $0.33 per diluted share, for the second quarter of 2024. They signed 540,000 square feet of office leases. The company is providing a third quarter FFO outlook of $0.08 to $0.12 per diluted share and updating key assumptions related to its full year FFO outlook.
Signed 540,000 square feet of office leases.
Total revenue was $218.0 million.
Net loss attributable to common stockholders was $47.0 million, or $0.33 per diluted share.
FFO, excluding specified items, was $24.5 million, or $0.17 per diluted share.
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 for the third quarter of $0.08 to $0.12 per diluted share and updating key assumptions related to its full-year FFO outlook.
Positive Outlook
- IATSE and Teamsters unions ratified new contracts in mid-July and early August, respectively, which paves the way for production to normalize.
- Office occupancy at the end of the third quarter could be in line with that reported for the second quarter.
- The Company’s same-store office portfolio continues to perform in line with its previously provided full-year same-store cash NOI growth assumptions.
- Solid leasing execution will continue as we move through the balance of the year given the second quarter was our highest activity since 2022, and our leasing pipeline remains healthy.
- Ongoing deleveraging remains a top priority and we have no debt maturities until the end of 2025.
Challenges Ahead
- Lower studio NOI is expected in the third quarter, as operating conditions are incrementally less favorable than the first half of the year.
- It will take time to greenlight and ready new productions.
- Slower than anticipated absorption within its same-store studio portfolio.
- Office lease expirations in the second and third quarter result in lower average office occupancy and NOI for the third quarter compared to the second quarter.
- Industry dynamics are very fluid, and as a result, we still lack visibility in regard to timing and direction of our studio operations.
Revenue & Expenses
Visualization of income flow from segment revenue to net income