Hudson Pacific Properties Inc, Q3 2026 Earnings Call Transcript

Hudson Pacific Properties reported a fifth consecutive quarter of rising office occupancy, stronger studio performance and 8.3% growth in same-store cash NOI, prompting an increase in its 2026 core FFO outlook to $1.15–$1.21 per share. Leasing demand remains firm, with a 2.1 million-square-foot pipeline and more than 1 million square feet in advanced negotiations; management expects the pipeline to support growth into 2027. West Coast office markets are recovering, led by the Bay Area and Seattle, while Los Angeles remains mixed. Tech-stock volatility has not yet affected tours or leasing activity, though the company is monitoring its effect on private funding. Studio conditions diverge: New York production is rising, while Los Angeles remains below historical levels; proposed federal and California tax incentives could support a rebound.

Asset sales and a $200 million senior-note repurchase reduced the company’s share of debt by 14% year over year, with pro forma liquidity of $840 million. Management expects leverage to trend lower and same-store cash NOI to continue improving as leases commence and free rent burns off; AFFO is expected to turn positive in the second half of 2027. Debt maturities will be addressed through a combination of liquidity, asset sales and capital markets, with no equity raise planned at current levels.