HPP Filings — Hudson Pacific Properties, Inc. - FilingSpy
HPP
Hudson Pacific Properties, Inc.
A West Coast real estate investment trust that owns and operates Class-A office buildings and film-and-TV studio lots, it serves tech and media tenants across Los Angeles, the Bay Area, Seattle, New York, and Vancouver. It grew out of Hudson Capital, Victor Coleman's firm, and went public in 2010. One fun twist: its Sunset Bronson Studios sits on the original Warner Bros. lot where the first talking picture, The Jazz Singer, was made.
Same-store NOI rose 9% in Q2 2026, the first increase in over two years, but a $50.4M impairment pushed the net loss to $104.7M.
rose for the first time since early 2023. fell 8.4% to $181.9 million and the net loss widened to $104.7 million, as a $50.4 million from the Quixote wind-down and a held-for-sale office property more than offset a 9% increase in same-store driven by office lease-up and higher studio production. The core portfolio is stabilizing, but the company continues to absorb losses from assets it is exiting.
Key takeaways
rose 9% to $91.8 million, driven by a $5.3 million increase in office from a lease extension at 1455 Market, tax refunds at Skyport Plaza, and lower expenses at 901 Market during repositioning, plus a $2.3 million increase in studio NOI on higher production at Sunset Gower and Sunset Las Palmas.
A $50.4 million was recorded, primarily from the wind-down of Quixote's leased sound stages and the held-for-sale 2001 Gateway Place office property, pushing the net loss to $104.7 million from $87.8 million a year ago.
Section summaries
Management's Discussion and Analysis
Q2 2026 net loss widened to $104.7M on $50.4M impairment, while same-store NOI rose 9% driven by office lease-up and higher studio activity.
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Total increased 3.3% to $84.6M, as a 9% rise in same-store NOI to $91.8M was partially offset by a $4.9M decline in non-same-store NOI.
Same-store office grew $5.3M, helped by a lease extension at 1455 Market, tax refunds at Skyport Plaza, and lower expenses at 901 Market during repositioning.
declined 8.4% to $181.9 million, while the widened 1.2 percentage points to 44.2%, as the mix shift toward higher-margin same-store properties offset the top-line decline.
General and administrative expenses fell 56.8% to $12.0 million, largely because the prior-year period included $14.3 million in accelerated equity compensation tied to cancelled executive awards.
rose 45% to $44.3 million, aided by favorable timing, and liquidity stood at $80.8 million in cash with $795.3 million available on the unsecured .
What changed
The same-store office decline flagged in Q1 2026 reversed: after falling 5.7% last quarter on lease terminations at 1455 Market, Hill7, and Concourse, same-store office NOI rose $5.3 million this quarter as a lease extension at 1455 Market and lower expenses at 901 Market took hold.
The studio 's improvement continued: same-store studio rose $2.3 million after a $1.4 million increase in Q1, suggesting the higher production activity at Sunset Gower and Sunset Las Palmas noted last quarter is sustaining.
The $50.4 million this quarter follows the $299.3 million Quixote in FY2025 and the $18.5 million impairment on 625 Second in Q1 2025, indicating management is still working through the exit of underperforming assets flagged in prior periods.
The 56.8% drop in G&A expenses reflects the absence of the $14.3 million accelerated equity compensation charge that drove the 34.2% increase in Q2 2025, returning run-rate overhead closer to levels seen before that one-time item.
What to watch
Track same-store office in Q3 2026 to see whether the 9% increase this quarter is the start of a sustained recovery or a one-quarter benefit from the 1455 Market lease extension and tax refunds at Skyport Plaza.
Monitor the in-service office leased rate, which was 77.0% at year-end 2025, to assess whether new leasing is offsetting the 7.3% of portfolio square feet expiring in 2026.
Watch for any additional charges or property sales tied to the Quixote wind-down and the held-for-sale 2001 Gateway Place, as the $50.4 million charge this quarter may not be the final exit cost.
Track studio for sustained profitability, particularly whether the higher production activity at Sunset Gower and Sunset Las Palmas continues into the seasonally stronger second half of the year.
Same-store studio rose $2.3M on higher production activity at Sunset Gower Studios and Sunset Las Palmas Studios.
A $50.4M was recorded, primarily from the wind-down of Quixote's leased sound stages and the held-for-sale 2001 Gateway Place office property.
General and administrative expenses fell 56.8% to $12.0M, largely due to $14.3M in accelerated equity compensation recognized in the prior-year period.
Liquidity included $80.8M in cash and $795.3M available on the unsecured , with no borrowings on the facility during the period.
Quantitative and Qualitative Disclosures About Market Risk
Information about our market risk is disclosed in Part II, Item 7A, of our 2025 Annual Report on Form 10-K and is incorporated herein by reference. There have been no material changes for the six months ended June 30, 2026 to the information provided in Part II, Item 7A, of our…
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Information about our market risk is disclosed in Part II, Item 7A, of our 2025 Annual Report on Form 10-K and is incorporated herein by reference. There have been no material changes for the six months ended June 30, 2026 to the information provided in Part II, Item 7A, of our 2025 Annual Report on Form 10-K.
From time to time, we are a party to various lawsuits, claims and other legal proceedings arising out of, or incident to, our ordinary course of business. We are not currently a party, as plaintiff or defendant, to any legal proceedings that we believe to be material or that, in…
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From time to time, we are a party to various lawsuits, claims and other legal proceedings arising out of, or incident to, our ordinary course of business. We are not currently a party, as plaintiff or defendant, to any legal proceedings that we believe to be material or that, individually or in the aggregate, would be expected to have a material adverse effect on our business, financial condition, results of operations or cash flows if determined adversely to us.
There have been no material changes to the risk factors included in the section entitled “Risk Factors” in our 2025 Annual Report on Form 10-K. Please review the Risk Factors set forth in our 2025 Annual Report on Form 10-K.
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There have been no material changes to the risk factors included in the section entitled “Risk Factors” in our 2025 Annual Report on Form 10-K. Please review the Risk Factors set forth in our 2025 Annual Report on Form 10-K.