Hudson Pacific Properties, Inc. reported its fourth‑quarter 2025 financial results, delivering a positive operating turnaround and a robust leasing pipeline. The company signed more than 2.2 million square feet of office leases in 2025, including 518,000 sq ft in the fourth quarter, and achieved a second consecutive quarter of positive net absorption. The leasing pipeline now stands at 2.3 million sq ft, with fourth‑quarter tours up more than 50% year‑over‑year.
The company’s cash‑flow‑friendly performance was underscored by a Funds From Operations (FFO) of $0.21 per diluted share, beating consensus estimates of $0.20 and a loss of $0.96. The revenue beat was even more pronounced: $256.0 million in Q4 2025 versus consensus estimates of $168.0 million to $193.5 million, a jump largely driven by a lease‑termination fee related to the sale of the Element LA campus. Net loss attributable to common stockholders widened to $277.9 million ($4.31 per diluted share) from $167.0 million ($8.28 per diluted share) in Q4 2024, largely due to a $280.8 million non‑cash impairment at Quixote.
Hudson Pacific completed nearly $330 million of strategic asset sales and more than $2 billion of proactive capital transactions, extending its debt maturity runway and nearly doubling its liquidity to $933.6 million. The company also achieved a $14.2 million annual reduction in studio operating expenses and is working to eliminate Quixote’s earnings drag by year‑end. Office occupancy finished at 76.3% in Q4 2025, up from 75.9% in Q3 2025, while studio occupancy rose to 67.1% and 69.1% for in‑service and stage portfolios, respectively.
Management highlighted the company’s transformation: "2025 was a breakthrough year for Hudson Pacific as we fundamentally transformed our capital structure and significantly enhanced our operating efficiency." The company also noted that it "executed nearly $330 million of strategic asset sales, completed more than $2 billion of proactive capital transactions that extended our maturity runway and nearly doubled our liquidity, and drove meaningful annual cost savings through G&A reduction and operational restructuring."
Hudson Pacific guided for full‑year 2026 FFO of $0.96 to $1.06 per diluted share, signaling confidence in a return to growth as leasing momentum continues and the California tax‑credit pipeline supports studio operations. The guidance reflects management’s view that the lowest office lease expiration schedule in four years and a strong demand environment position the company for a rebound in earnings. Investors reacted with mixed sentiment, with some positive focus on revenue and FFO beats and leasing momentum, tempered by concerns over the sizable non‑cash impairment and ongoing sector headwinds.
The company’s balance‑sheet transformation, coupled with a strong leasing pipeline and improved liquidity, positions Hudson Pacific to navigate current market headwinds while pursuing growth opportunities in tech‑centric West Coast markets. The results underscore the company’s ability to execute on its strategic plan, but the widening net loss and impairment charges highlight the need for continued focus on cost discipline and asset optimization.
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