Hudson Pacific Properties (HPP, Financial) has successfully completed its latest financial transaction, finalizing within a range of $2.18 to $2.28. This offering was managed by a team of bookrunners, including BofA, Wells Fargo, and RBC Capital. Their collective efforts ensured the deal remained within the anticipated pricing bracket, highlighting effective collaboration in the process.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Hudson Pacific Properties Inc (HPP, Financial) is $3.17 with a high estimate of $8.00 and a low estimate of $1.75. The average target implies an upside of 27.62% from the current price of $2.48. More detailed estimate data can be found on the Hudson Pacific Properties Inc (HPP) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Hudson Pacific Properties Inc's (HPP, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Hudson Pacific Properties Inc (HPP, Financial) in one year is $4.97, suggesting a upside of 100.4% from the current price of $2.48. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Hudson Pacific Properties Inc (HPP) Summary page.
HPP Key Business Developments
Release Date: May 07, 2025
- Revenue: $198.5 million for Q1 2025, down from $214 million in Q1 2024.
- FFO (Funds From Operations): $12.9 million or $0.09 per diluted share, compared to $24.2 million or $0.17 per diluted share a year ago.
- Same-Store Cash NOI: $93.2 million, down from $103.4 million in Q1 2024.
- Leasing Activity: 630,000 square feet of new and renewal leases signed in Q1 2025.
- Office Portfolio Occupancy: 76.5% leased as of the end of Q1 2025.
- Studio Revenue: $33.2 million, $2.2 million lower due to production pauses.
- Liquidity: $838.5 million, including $86.5 million in cash and $702 million in undrawn credit facility capacity.
- CMBS Financing: $475 million for six office properties, with an all-in rate of 7.14%.
- Second Quarter FFO Guidance: Expected to range from $0.03 to $0.07 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hudson Pacific Properties Inc (HPP, Financial) achieved its highest quarterly leasing activity since Q2 2022, signing 630,000 square feet of new and renewal leases.
- The company successfully closed on asset sales generating $97 million in liquidity, with plans for additional sales of $125 million to $150 million.
- AI office leasing in San Francisco showed significant growth, with over 0.5 million square feet leased in the first quarter.
- The company reported a strong leasing pipeline, with 2.1 million square feet in late-stage deals, indicating potential future growth.
- Hudson Pacific Properties Inc (HPP) has made significant cost reductions at Quixote, achieving $14.2 million in annualized savings.
Negative Points
- First quarter 2025 revenue decreased to $198.5 million from $214 million in the same quarter last year, primarily due to asset sales and lower office occupancy.
- The company's first quarter FFO, excluding specified items, dropped to $12.9 million or $0.09 per diluted share, compared to $24.2 million or $0.17 per diluted share a year ago.
- Same-store cash NOI decreased to $93.2 million from $103.4 million in the first quarter last year, mainly due to lower office occupancy.
- Hudson Pacific Properties Inc (HPP) faces challenges in Los Angeles due to devastating fires and budget woes, impacting the studio business.
- The company anticipates lower office NOI and higher interest expenses in the second quarter, which could negatively impact financial performance.
