Hudson Pacific Raises Guidance as Stock Surges 12%

Hudson Pacific Properties (HPP) reported Q2 2026 earnings on August 5, 2026, with revenue declining slightly year-over-year but beating estimates. The company raised its full-year Core FFO guidance, reflecting improved occupancy and strategic leasing.

Revenue

Hudson Pacific’s total revenue fell 0.9% to $188.30 million in Q2 2026, compared to $190 million in Q2 2025. Office operations contributed $153.12 million, with rental revenues accounting for $149.60 million. Service and other revenues added $3.52 million. The studio segment generated $35.18 million, including $13.49 million in rental revenues and $21.69 million in service and other revenues. The decline was primarily attributed to asset dispositions, partially offset by higher office occupancy.

Earnings/Net Income

The company narrowed its per-share loss to $1.62 from $2.87 in Q2 2025, a 43.6% improvement. However, the net loss widened to $104.69 million in Q2 2026, up 19.3% from $87.76 million in the prior year. While the EPS loss improved, the net loss expansion highlights ongoing challenges.

Price Action

Hudson Pacific’s stock surged 12.39% in the latest trading day, gained 7.08% over the past week, but declined 7.99% month-to-date.

Post-Earnings Price Action Review

The “buy HPP on a revenue beat, hold 30 days” strategy yielded a +3.67% return in the most recent cycle, outperforming a -2.67% benchmark period. However, the sample size remains limited, and HPP’s post-earnings performance is influenced by guidance and sector dynamics rather than revenue alone. The strategy appears tradable but requires validation across multiple cycles to establish robustness.

CEO Commentary

CEO Victor Coleman highlighted a 470-basis-point occupancy increase to 82.5%, driven by a 24-year lease with San Francisco. Core FFO per share rose 30% to $0.35, while same-store cash NOI increased 7.5%. The studio business remains strong at 95.5% leased, and the company maintains $876 million in liquidity. Coleman emphasized disciplined capital allocation and a 2.4 million-square-foot leasing pipeline.

Guidance

Hudson Pacific raised its 2026 Core FFO outlook to $1.12–$1.20 per diluted share, excluding the impact of Quixote’s stage and Atlanta operations closures. Key assumptions include 80.0–82.0% average office occupancy and same-store cash NOI growth of -1.75% to -0.75%.

Additional News

Morgan Stanley raised HPP’s price target to $9 from $5 while maintaining an Underweight rating. Mizuho and Piper Sandler also increased targets to $17 and $16, respectively, with Neutral ratings. These adjustments reflect improved leasing momentum and asset dispositions. Bank of America downgraded HPP to Underperform, citing valuation concerns, while analysts at TheFly and Seeking Alpha maintain mixed outlooks.