Hudson Pacific PropertiesHPP +7.48%52 Gross Margin % is 44.17% as of Mar. 2026, which is 30% below its 10-year median of 62.66. GuruFocus rates HPP with a GF Score™ of 52/100 and a GF Value™ of $8.96 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 680 REITs companies, Hudson Pacific Properties ranks worse than 85.88% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hudson Pacific Properties had a gross margin of 44.17% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hudson Pacific Properties Gross Margin % Related Terms
Hudson Pacific Properties Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Office subindustry, Hudson Pacific Properties's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hudson Pacific Properties Gross Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Hudson Pacific Properties's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hudson Pacific Properties's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hudson Pacific Properties (HPP) has a Gross Margin % of 44.17% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hudson Pacific Properties and its competitors. This is 30% below median its historical median of 62.66. Over the past decade, Hudson Pacific Properties' Gross Margin % has ranged from 46.08 to 65.18. According to the industry distribution chart, Hudson Pacific Properties ranks #584 out of 680 companies in the REITs industry, placing it in the top 85.9%.
Is Hudson Pacific Properties' Gross Margin % too high?
Hudson Pacific Properties' current Gross Margin % of 44.17% is 30% below median its 10-year median of 62.66. Over the past 10 years, this metric has ranged from a low of 46.08 to a high of 65.18. The REITs industry median Gross Margin % is 69.71. Hudson Pacific Properties' value of 44.17% is 36.6% below this industry median. Based on the distribution chart, Hudson Pacific Properties ranks #584 out of 680 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Hudson Pacific Properties has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hudson Pacific Properties' Gross Margin % compare to PSTL and BDN?
According to the REITs industry distribution chart, Hudson Pacific Properties ranks #584 out of 680 companies for Gross Margin %. This places Hudson Pacific Properties in the lower half of its industry. The industry median Gross Margin % is 69.71. Hudson Pacific Properties' value of 44.17% is 36.6% below this benchmark. Historically, Hudson Pacific Properties' own Gross Margin % has ranged from 46.08 to 65.18 over the past decade. While the company's 10-year median is 62.66 vs. the industry median of 69.71, Hudson Pacific Properties has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a REITs company?
The median Gross Margin % among REITs companies is 69.71, based on 680 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hudson Pacific Properties's current Gross Margin % of 44.17% is 36.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hudson Pacific Properties and its competitors. For the REITs industry, the median Gross Margin % is 69.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudson Pacific Properties's current Gross Margin % is 44.17%, which is 30% below median its own 10-year median of 62.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudson Pacific Properties stock overvalued right now?
Based on GuruFocus' analysis, Hudson Pacific Properties (HPP) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.96, compared to a current price of $15.37 — trading 71.5% above its estimated fair value. The current Gross Margin % is 44.17%, which is 30% below median its 10-year median of 62.66 and 36.6% below the REITs industry median of 69.71. Hudson Pacific Properties' overall GF Score™ is 52/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hudson Pacific Properties (HPP), the current Gross Margin % is 44.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hudson Pacific Properties (HPP) Overvalued in 2026?
Based on GuruFocus' analysis, Hudson Pacific Properties stock appears to be overvalued.
The current stock price of $15.37 is trading 71.5% above its estimated GF Value™ of $8.96.
GuruFocus considers Hudson Pacific Properties to be Significantly Overvalued.
Key valuation signals for HPP:
Gross Margin %: 44.17% (30% below median its 10-year median of 62.66)
GF Value™: $8.96 vs. price of $15.37 (71.5% above fair value)
Industry Position: 36.6% below the REITs median (#584 of 680)
No single metric tells the full story. See the HPP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudson Pacific Properties Inc is a vertically integrated real estate investment trust offering end-to-end real estate solutions for dynamic tenants in the synergistic, converging and secular growth industries of tech and media. It acquires, repositions, develops and operates sustainable high-quality office studio properties in high-barrier-to-entry tech and media epicenters. Its primary investment markets include Los Angeles, the San Francisco Bay Area, Seattle, New York and Vancouver, British Columbia. Its segments include Office properties and related operations and Studio properties and related operations. The majority of the revenue is derived from Office properties and related operations segment.
52GF Score
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