Hudson Pacific Properties (HPP) Q4 2024 Earnings Report

Financial and operating metrics (QQ4 2024) – Highlights:
- Revenue: $209.666 million; YoY change: -6.16%; QoQ change: 25.59% (reflects asset sales and timing).
- Gross Profit: $93.74 million; Gross margin: 44.7%; YoY impact skewed by impairment and mix.
- Operating Income: -$14.85 million; Operating margin: -7.08%; YoY unchanged on margin but improved on core activity excluding impairment.
- Net Income: -$166.15 million; Net margin: -79.24%; largely driven by Quixote goodwill impairment and one-time accounting items.
- EBITDA: -$41.29 million; EBITDA margin: -19.69%
- FFO (ex-items): $15.5 million or $0.11 per diluted share; Specified items: $0.74 per diluted share (vs. $0.05 a year ago).
- Leverage and liquidity: Total debt $4.623B; Net debt $4.560B; Net debt to undepreciated book value, 38.7%; Liquidity after credit facility amendment: $518.3 million (unrestricted cash $63.3M; undrawn revolver $455M; construction loan capacity $40M share).
- Occupancy and NOI: In-service office occupancy ~79% (80% prior quarter); trailing 12-month office cash NOI index constrained by occupancy headwinds; Studio trailing 12-month cash NOI $94.2 million vs $106.3 million prior year.
- Portfolio activity: Leases signed in quarter ~442,000 SF; ~60% new deals; pipeline just over 2.0 million SF; five 2025 expirations >50k SF totaling ~660k SF with ~68% coverage; five-year expirations in 2025 weighted to first half (per management).
- Guidance (2025): Q1 FFO diluted $0.07–$0.11; full-year same-store property cash NOI down 12.5% to 13.5%; expected noncash revenue $10–$15 million; cost savings in G&A guidance of $3–$9 million; occupancy stabilization expected in 2H25; ongoing asset sales target of $100–$150 million asset dispositions; capex and development activity continuing (Washington 1000 progress; Pier 94 on time and budget).