Overview

* Hudson Pacific Q3 revenue misses analyst expectations, declining due to asset sales and lower occupancy

* Net loss for Q3 widens, largely due to deconsolidation of Sunset Glenoaks

* Company highlights over 500,000 sq ft of office leasing, 80% in Bay Area

Outlook

* Company provides 4Q FFO outlook of $0.01 to $0.05 per diluted share

* Company updates full-year assumptions with same-store cash NOI decline of 11.5%-12.5%

* Outlook excludes impacts from new acquisitions or debt financings

Result Drivers

* LEASING ACTIVITY - Over 500,000 sq ft of office space leased in Q3, with 80% in the Bay Area, driven by demand from AI and tech companies

* COST SAVINGS - General and administrative expenses improved by 30% compared to last year due to cost-savings initiatives

* LIQUIDITY POSITION - Company reports $1 bln of liquidity at quarter end, with 100% of debt fixed or capped and no maturities until 2026

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $186.60 $196.41

Revenue mln mln (5

Analysts

)

Q3 EPS -$0.30

Q3 Net -$136.50

Income mln

Q3 $16.70

Adjusted mln

FFO

Q3 FFO $14.60

mln

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 7 "hold" and 1 "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 ( HPP ) is $3.05, about 26.2% above its November 4 closing price of $2.25

Press Release:

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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.)