Hudson Pacific Properties (HPP) Q1 2026 Earnings Report

Hudson Pacific Properties (HPP) reported a challenging QQ1 2026 with meaningful top-line pressures driven by divestitures and tenant move-outs, notably Uber from 1455 Market, resulting in revenue of $181.9 million and a net loss of $48.0 million. Yet the quarter also featured meaningful operating progress: occupancy in-service office portfolio rose 150 basis points to 77.8%, and the office lease rate rose 140 basis points to 78.4%, supported by a 2.4 million square foot leasing pipeline and 554 thousand square feet of leases signed. Management frames this as a year of transitioning back toward FFO growth through strategic dispositions, Coyote wind-down actions, cost discipline, and selective redevelopment, especially in high-demand West Coast markets where AI and tech demand are driving activity. Core FFO for the quarter was $16.5 million ($0.25 per diluted share), aided by cost reductions (G&A down 32% YoY to $12.6 million) and favorable (CAM-related) items, despite a negative gross profit margin and continuing profitability headwinds from non-cash and one-time items. The company raised full-year Core FFO guidance to $1.10–$1.18 per diluted share, incorporating roughly $0.04 of Q1 outperformance and a $0.09 tailwind from reclassifying Coyote-related leased soundstages and Atlanta operations as discontinued operations. Looking ahead, HPP emphasizes a constructive demand backdrop in West Coast markets, ongoing disposition progress targeting roughly $200 million of FFO-accretive non-core assets, and selective redevelopment/remodel opportunities (e.g., 901 Market residential entitlements, parking-density densification). Investors should monitor occupancy progression by market, the pace of Washington 1000 and other flagship assets, the Coyote wind-down trajectory, and the timing and economics of planned dispositions and redevelopment initiatives.