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- **Leasing Surge**: 1.7M sq ft leased YTD, 555K sq ft in Q3, with 80% of activity in AI-driven Bay Area.
- **AI Growth**: 100K sq ft lease at Palo Alto, 25K sq ft avg deal size, and 74 new productions under CA tax credits.
- **Financial Strength**: $1B liquidity, 100% fixed debt, and Q3 FFO up 17% YoY to $0.04/diluted share.
- **Studio Recovery**: Hollywood Studios at 98% occupancy, Sunset Pier 94 nearing completion with strong pre-leasing.
- **Seattle Momentum**: Hill7 seeing 171K sq ft tour growth QoQ, 4 tenants in late-stage talks for 139K sq ft.


**【CEO Summary Section】**
- Hudson Pacific reported 75 office leases totaling 555,000 sq ft in Q3, with 67% new deals, driving year-to-date leasing to 1.7M sq ft.
- AI-driven demand led to a 100,000 sq ft lease at Palo Alto's Page Mill Center, part of 80% of Q3 activity in the Bay Area.
- Sequential occupancy rose to 75.9%, up 80 bps, with 2026 expirations at 1M sq ft (50% covered) and 2025 expirations at 140K sq ft (half in negotiation).
- Seattle's Hill7 acquisition aims to capitalize on $1.5B AI investments, with 4 tenants in late-stage talks for 139K sq ft.
- Studio recovery: Hollywood Studios at 98% occupancy, Sunset Pier 94 nearing completion with strong pre-leasing.

**【CFO Financial Commentary】**
- Q3 revenue $186.6M, FFO (excluding items) $16.7M ($0.04/diluted share), up 17% YoY from G&A savings and studio NOI improvement.
- Liquidity at $1B (100% debt fixed/capped), with no maturities until Q3 '26.
- Refinanced $285M at 1918 8th St, extended credit facility to $795.3M, and amended Sunset Pier 94 loan.
- Outlook: Q4 FFO $0.01-$0.05, driven by studio seasonality and tax credit lag.

**【Q&A Highlights】**
- **Leasing Momentum**: Sequential occupancy growth (75.9% vs 75.1%), 2.2M sq ft pipeline, and 25K sq ft avg deal size reflect confidence in AI/tech expansion.
- **Studio Recovery**: 74 new productions (vs 18 last year) under CA tax credits, with 18 TV series and 10 films allocated, poised to boost 2026 demand.
- **Seattle Outlook**: Hill7 seeing 171K sq ft tour growth QoQ, with 4 tenants in late-stage talks for 139K sq ft.
- **Cost Efficiency**: Quixote Studios NOI improved $4M QoQ, targeting break-even by Q1 '26 with $23M annual savings.
- **Capital Recycling**: Disciplined asset sales strategy to reinvest in high-conviction markets like the Bay Area.


Hudson Pacific Properties, Inc. (HPP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HPP

HPP fundamentals

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