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Sep 30, 2025
Hudson Pacific Q3 2025 Earnings Report
Hudson Pacific Properties reported its third quarter 2025 financial results, highlighting strong operational execution in office leasing and improved studio NOI.
Key Takeaways
Hudson Pacific Properties delivered a quarter of strong operational execution, with over 500,000 square feet of office leasing and positive office absorption. The company significantly strengthened its balance sheet with $1 billion of liquidity and no debt maturities until the second half of 2026. Studio NOI approached breakeven due to cost-savings initiatives.
Executed over 500,000 square feet of office leasing in Q3 2025, contributing to the best year-to-date leasing performance since 2019.
Achieved positive absorption within the office portfolio during the quarter, indicating a clear inflection point in market recovery.
Secured a 100,000 square foot lease with an AI company in the Bay Area, demonstrating strong demand from tech tenants.
Significantly improved liquidity to $1.0 billion at quarter-end and reduced General and Administrative expenses by 30% compared to the prior year.
Revenue by Segment
Forward Guidance
Hudson Pacific Properties is providing an FFO outlook for the fourth quarter of 2025, ranging from $0.01 to $0.05 per diluted share, and has updated its full-year assumptions. This outlook reflects management's view of current and future market conditions, excluding any impact from new acquisitions, dispositions, or capital markets activity.
Positive Outlook
- Anticipated continued momentum in West Coast markets, driven by AI and technology companies.
- Strong leasing pipeline of 2.2 million square feet positions the company for future growth.
- Lowest lease expiration profile in four years, reducing near-term risk.
- Cost-savings initiatives are expected to continue improving studio NOI.
- Strengthened balance sheet with $1 billion of liquidity and 100% of debt fixed or capped, providing financial flexibility.
Challenges Ahead
- Full-year 2025 growth in same-store property cash NOI is projected to be negative, between -12.50% and -11.50%.
- GAAP non-cash revenue is expected to be significantly lower than previous periods.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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