Hudson Pacific Properties' Q3 revenue falls more than expected

Overview

• US office and studio REIT reported steeper-than-expected drop in Q3 revenue

• Core FFO per share grew about 8% yr/yr, driven by higher occupancy and cost savings

• Company raised and narrowed full-year 2026 Core FFO guidance

Outlook

• Company raises and narrows 2026 Core FFO outlook to $1.15-$1.21 per share

• Company expects 2026 average in-service office occupancy of 82.0%-84.0%

• Company forecasts 2026 same-store cash NOI growth of 0.0%-1.0%

Result Drivers

• HIGHER OCCUPANCY - Co said improved office and studio occupancy drove yr/yr growth in Core FFO and same-store cash NOI

• COST SAVINGS - Co attributed lower general and administrative expenses to cost savings initiatives

• ASSET SALES - Co said revenue decline was primarily due to asset dispositions, partially offset by improved occupancy and studio activity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Hudson Pacific Properties, Inc. is $15.00, about 42% above its November 4 closing price of $10.56

Reuters Recommended Reads

• Nov 2 - Vornado Realty Trust Q3 adjusted FFO per share rises on rent commencements

• Nov 3 - Safehold Q3 revenue beats analyst expectations

• Nov 4 - Global Net Lease Q3 revenue falls on asset sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)