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Jun 30
Hudson Pacific Q2 2025 Earnings Report
Hudson Pacific reported its second quarter 2025 financial results, highlighting significant leasing activity, improved liquidity, and a reduction in recurring G&A expenses.
Key Takeaways
Hudson Pacific Properties delivered a mixed second quarter 2025, with total revenue decreasing year-over-year primarily due to asset sales and lower office occupancy. However, the company achieved substantial leasing activity, securing 1.2 million square feet in 1H25, including 558,000 square feet in Q2. Liquidity significantly improved to $1.0 billion, and recurring G&A expenses saw a 35% improvement. The company is optimistic about future growth driven by AI investments and a ramping media industry.
Total revenue for Q2 2025 was $190.0 million, down from $218.0 million in Q2 2024, mainly due to asset sales and reduced office occupancy.
The company leased 558,055 square feet in Q2 2025, contributing to 1.2 million square feet leased in the first half of the year.
Hudson Pacific ended the quarter with $1.0 billion in total liquidity, including $236.0 million in unrestricted cash and cash equivalents.
Net loss attributable to common stockholders was $(83.1) million, or $(0.41) per diluted share, compared to a net loss of $(47.0) million, or $(0.33) per diluted share in the prior year.
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 $0.01 to $0.05 per diluted share and has updated its full-year assumptions for 2025. The outlook reflects current market conditions and excludes impacts from new acquisitions, dispositions, or capital markets activity.
Positive Outlook
- Anticipated positive traction in the studio business with increased leased percentages.
- Robust leasing pipeline in excess of 2.0 million square feet.
- Significantly lower lease expirations going forward, contributing to portfolio stabilization.
- Emerging growth drivers from AI investments in core markets.
- Media industry beginning to ramp up production, expected to drive cash flow.
Challenges Ahead
- Full-year 2025 same-store property cash NOI growth is projected to be negative, ranging from (12.50)% to (11.50)%.
- General and administrative expenses are expected to be between $(57.5) million and $(63.5) million for the full year.
- Interest expense is projected to be between $(168.0) million and $(178.0) million for the full year.
- FFO from unconsolidated joint ventures is expected to be relatively low, between $0.6 million and $2.6 million.
- FFO attributable to non-controlling interests is projected to be between $(13.0) million and $(17.0) million.