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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 12:00 p.m. ET Chairman and Chief Executive Officer - Victor Coleman President - Mark Lammas Chief Financial Officer - Harout Diramerian Executive Vice President of Leasing - Art Suazo Executive Vice President, Investor Relations and Marketing - Laura Campbell Operator: Hello, everyone. Thank you for joining us, and welcome to the Hudson Pacific Properties Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Laura Campbell, Executive Vice President, Investor Relations and Marketing. Laura, please go ahead Laura Campbell: Good afternoon, everyone. Thanks for joining us. With me on the call today are Victor Coleman, Chairman and CEO; Mark Lammas, President; Harout Diramerian, CFO; and Art Suazo, EVP of Leasing. This morning, we filed our earnings release and supplemental on an 8-K with the SEC, and both are now available on our website, along with an audio webcast of this call for replay. Some of the information we'll share on the call today is forward-looking in nature. Please reference our earnings release and supplemental for statements regarding forward-looking information as well as the reconciliation of non-GAAP financial measures used on this call. Today, Victor will discuss our second quarter results and current market trends. Mark will provide detail on our office and studio operations and Harout will review our financial results of 2026 outlook. Thereafter, we'll be happy to take your questions. Victor? Victor Coleman: Thanks, Laura. Hello, everyone, and welcome to our second quarter call. This was both a record leasing and highly productive quarter for Hudson Pacific. We signed 1.3 million square feet of new and renewal office leases headlined by a landmark 891,000 square-foot 24-year lease with the City and County of San Francisco at 1455 Market, which locks in nearly 1/4 of a century of cash flow visibility. Occupancy increased 470 basis points, our fourth consecutive quarter of gains and improved performance across our office and studio portfolios drove same-store NOI up 7.5%. Together with continued cost reductions and Quixote restructuring, we nearly tripled core FFO and achieved a 30% increase on a per share basis. We also stayed disciplined on capital, maintaining total liquidity of $876 million while continuing to execute our asset disposition plan. And importantly, as we look ahead, we reloaded our leasing pipeline to 2.4 million square feet. That leasing strength is playing out against a constructive venture and IPO backdrop, U.S. venture investment totaled $145 billion in the second quarter, its second largest and strongest quarter ever with -- infrastructure, robotics and space tech. This all points to a wider, more diverse tenant base rather than a single sector bed, which will benefit our portfolio over time. The IPO market is improving, too with pending listings signaling further office demand as newly public companies and the ecosystem around them continue to grow. Across nearly every market in our portfolio, demand is broadening along virtually no new construction and that dynamic is strengthening fundamentals, though at different rates across our markets. San Francisco posted its seventh consecutive quarter of positive absorption and its largest year-over-year rent increase since 2020. We're seeing strength at the submarket levels across the Peninsula and the Valley led by strong year-to-date positive absorption in Foster City and Redwood City, Redwood Shores, along with multiple headline leases in Santa Clara. In Los Angeles, our leasing efforts are focused on West Los Angeles, which commands the market's most robust activity and highest rents even as the broader markets remain challenged overall. The Puget Sound extended its recovery for its third consecutive quarter led by Downtown Seattle, which leases came from Anthropic, DocuSign and Stripe helped drive the first improvement in CBD vacancy in 6 years. And Downtown Vancouver continues to stand out on fundamentals with vacancy just over 12%, the tightest in our portfolio with positive net absorption both for the quarter and year-to-date. Regarding studios, our prime location studios continue to outperform as the production landscape remains mixed. New York show counts improved and Los Angeles was relatively stable as California's production pipeline continues to work through a meaningful backlog of tax credit approval projects not yet in production. Importantly, with SAG-AFTRA, WGA and DGA, all ratifying new 4-year AMPTP agreements, the labor risk that drove much of the industry's recent volatility is now off the table. Our strategy remains unchanged, restructure Quixote while optimizing performance at our best-in-class assets. Finally, turning to dispositions. We continue to make good progress against our $200 million target, having sold 2001 Gateway after quarter end with three additional Bay Area office assets currently in contract or negotiation, alongside our 10950 Washington residential development site. Buyer demand for Bay Area office assets has picked up meaningfully this year, allowing us to execute this program on our time line and to redeploy capital toward our broader strategic priorities. Now with that, I'm going to turn it over to Mark, who's going to talk about leasing and operations. Mark Lammas: Thanks, Victor. As you noted, we signed 1.3 million square feet of office leases in the quarter, 61% new and 39% renewal. On top of the city and county of San Francisco lease for 891,000 square feet, we executed an additional 402,000 square feet of leases, 71% of which were new and 29% renewal. Our occupancy increased 470 basis points sequentially to 82.5%, and our lease rate climbed 440 basis points sequentially to 82.8%. Our portfolio occupancy and lease percentages improved everywhere, except the already strong Palo Alto and Vancouver submarkets, both of which ended the quarter effectively 94% leased. Rent spreads grew 17.2% on a GAAP basis and decreased 11.4% on a cash basis. Excluding the City and County lease, GAAP rents were off 3.3% and cash rents were down 9.9% due primarily to midsized deals in Palo Alto, rolling off of pre-pandemic peak market brands. However, these rents are still quite healthy at north of $80 per square foot. Net effective rents strengthened this quarter, rising 22% sequentially and 9% year-over-year, benefiting significantly from the City and County lease. Trailing 12-month net effective rents were up 7% sequentially and 1% year-over-year. Tours rose nearly 20% year-over-year. Even with strong second quarter leasing, we reloaded the pipeline to 2.4 million square feet, nearly 70% new leases with an average requirement size north of 20,000 square feet. Excluding 2001 Gateway, which we sold earlier in the third quarter and 875 Howard, where we now have line of sight on a potential sale, we have just over 50% coverage on approximately 400,000 square feet of leases set to expire through the remainder of the year. This includes 80% coverage on the PayPal lease at Fort Traction. At Washington 1000, we now have coverage for approximately 65% of the building, up from 60% last quarter with active negotiations across 9 tenants, including requirements of up to 125,000 square feet. We're seeing strong traction on our newly delivered move-in-ready suites with 8 tenants in the last 30 days touring or scheduling tours. Tour activity building-wide has also increased, driven primarily by new-to-market tech, AI and professional services firms. Turning to studios. We continue to see strong interest from leading showrunners and major studios for our prime production space. Our in-service stages were 74.6% leased during the second quarter, up 180 basis points sequentially driven by an improved lease rate at Sunset Pier 94 up 40 percentage points to 78.5%. Our Hollywood stages inclusive of Sunset Las Palmas remain well leased at 95.5%. As part of our Quixote restructuring, we have designated as noncore with plans to exit its lease sound stage facilities in Atlanta area operations as well as Quixote's Pro Supplies and stage ancillary businesses, including Lighting and Grip. Going forward, we will speak to our studio NOI on a core basis, which in the second quarter reflects Sunset Studios and Quixote's fleet operations in Los Angeles and New York. Core studio NOI was up $3.1 million sequentially and $7 million year-over-year to $4.6 million, with HBP's share turning positive for the first time in 2 years at $2.2 million. Putting a finer point on the Quixote restructuring to date, Quixote generated negative cash NOI of $18.6 million in 2024. Since then, our restructuring efforts have improved annualized run rate cash NOI by approximately $14.3 million, bringing the fleet business to just over $4 million of negative annualized cash NOI at current demand levels, closing roughly 3/4 of the gap to our breakeven objective. Turning to value creation optionality across the portfolio. We continue to make progress on our reentitlement and adaptive reuse, an area where our team's expertise is a real differentiator. At 901 Market in San Francisco, we filed our office to residential reentitlement application with entitlements expected before year-end. We're also advancing construction drawings in parallel so we can quickly move once approved, essentially the same playbook we're running at 10950 Washington. We also recently amended the CCNRs at Metro Center in Foster City and across our Redwood Shores assets to permit residential use, giving us the flexibility to explore residential and mixed-use development. This isn't a reaction to soft leasing demand as we're seeing healthy interest in these locations, rather a proactive step to unlock value by tapping into strong residential demand independent of where the office leasing cycle stands. In short, these entitlement efforts will create development options to enhance our current portfolio value. And now Harout will take you through our financial results and outlook. Harout Diramerian: Thanks, Mark. Total revenues were $188.3 million compared to $190 million in the prior year, primarily due to asset dispositions most significantly the sale of Element L.A., almost entirely offset by improved office occupancy. As a result of ongoing cost-saving initiatives, G&A improved 11% to $12 million compared to $13.5 million in the prior year. The latter adjusted to exclude the prior year expense associated with the onetime cancellation of noncash compensation agreements. We nearly tripled core FFO to $23.1 million, up from $8 million in the prior year, while core FFO on a per diluted share basis increased 30% to $0.35, up from $0.27 in the prior year. Adjustments to core FFO, including noncore Quixote lines of business totaled $7.5 million or $0.11 per diluted share compared to $19.2 million or $0.64 per diluted share in the prior year. We grew same-store cash NOI 7.5% to $90.2 million compared to $83.9 million in the prior year, driven by higher office and studio occupancy. Turning to our balance sheet. Total liquidity of $876 million includes $81 million of cash and full availability of $795 million on our credit facility. Interest expense was 20% lower year-over-year, representing $9.7 million of savings and all of our debt is fixed or capped. Regarding the Hollywood Media portfolio loan, subsequent to quarter end, the loan transferred to the special servicer ahead of its third quarter maturity. The borrower and the special servicer have since agreed on terms for a longer-term extension along with a 30-day extension to finalize documentation. Wrapping up our 2026 outlook, we are raising our full year core FFO to a range of $1.12 to $1.20 per diluted share, up from the prior range of $1.10 to $1.18 per diluted share. This updated range reflects at the midpoint, approximately $0.01 of outperformance in the second quarter compared to our initial expectations as well as approximately $0.01 attributable to improved expectations for the second half of the year. As we have previously noted, even with the first and second quarter outperformance, we anticipate third quarter expirations will impact occupancy and earnings results with a rebound in the fourth quarter. As a reminder, this updated range excludes the previously announced closures of Quixote's stage and Atlanta operations and the associated stage ancillary and Pro Supply segments from core FFO. And as always, our outlook excludes potential dispositions, acquisitions or capital markets activity. With that, I'll turn the call back to Victor for closing remarks. Victor Coleman: Thanks, Harout. Simply put, the second quarter reflects exactly the execution we said we'd deliver. Record leasing, our fourth consecutive quarter of occupancy growth, a transformative long-term agreement with the City and County of San Francisco, and a Quixote restructuring that's now yielding measurable earnings benefits. We still have work ahead of us, but each of these actions reinforces the same outcome, a clear incredible path to sustained FFO per share growth. Operator, now I'd like to turn it back to you for questions. Operator: [Operator Instructions] Your first question comes from the line of Jamie Feldman with Wells Fargo. Jamie Feldman: So West L.A., you're talking about a recovery and then you still have decent upside to get to stabilization in North San Jose, Denny Triangle. Can you just talk more about those markets, but especially West L.A., if there's a real inflection point happening or how we should think about what's to come? Victor Coleman: Well, I mean, West L.A., you guys cover other our peers. You're seeing -- it's a bifurcated marketplace, right? You've got Brentwood and Century City and Beverly Hills doing exceptionally well. I think Westwood and Santa Monica are a little slower. Olympic Corridor is a little slower. But again, there's zero construction in the near future for new product. And so good space is pretty much leased up or spoken for and being expanded upon. And I think you're seeing that momentum potentially drive into some of the other marketplaces like Santa Monica and hopefully in Westwood and overall, the West side. Culver City has been strong all the way through, but there's very little product there, and everything is -- that's being built in that marketplace is already pre-leased. Jamie Feldman: But I guess more on the demand side, like what's changing? Victor Coleman: Well, listen, we've talked about the fire tenants being massively impactful in West L.A., majority of which is led by law firms. The streaming/entertainment companies have taken sort of homes in specific marketplaces like Apple and Culver, Sony and Culver, Netflix and Hollywood, and Amazon spread themselves between, obviously, Santa Monica and Culver, Lionsgate, Beverly Hills. And so entertainment companies, WME, the same are all in those marketplaces. And then their ancillary guys are growing. I implications around AI is just not that strong here yet. They're small growth tenants. But I do think it's entertainment and fire, and that's sort of the nucleus. Art, do you want to comment? Arthur Suazo: Yes. I mean I think the demand drivers, Jamie, are positive. They're modestly improving. There was an improvement in net absorption, gross leasing was up slightly, things like that, that we're monitoring very closely. And that's coming from the small to midsized tenants in the market. As you know, and all this talk about West L.A. improving, West L.A. has been driving the L.A. market for several years, and it will continue to do so as the demand drivers continue to increase. Jamie Feldman: Okay. And then if I can ask another, just the studio loan, can you just talk about how you're including that in guidance? Or anything you can say about expectations of what that could look like for numbers or how we should be modeling it? Harout Diramerian: Yes. So we can't get into any specifics because we're still finalizing documentation but what we can say is in our guidance, we've kept things the same, and that is our expectation. Jamie Feldman: Okay. So just kept like same interest expense that you've got now. Don't change anything? Harout Diramerian: Correct. Operator: Your next question comes from the line of Jana Galan with Bank of America. Jana Galan: Congrats on the strong office leasing and the improvements at Quixote. I guess maybe first question on the guidance. The main change seems to be the outperformance in second quarter G&A. Are there any other kind of puts and takes that are driving the FFO guidance increase given the strong leasing outlook? Harout Diramerian: Just around guidance. So yes, our second quarter was very strong, but not that strong compared to our own expectations. We beat our own expectations by about $0.01, and our projections are higher about $0.01. So the leasing expectations that we've experienced in the second quarter and the projections are in line with our previous guidance. So nothing has really changed from that expectation, which is why you're not seeing a massive increase in our projections in our guidance. Jana Galan: And then maybe just on the transaction market, given the asset sale post quarter and just a few more that may come. If you can just kind of comment on what you're seeing the kind of demand and depth of buyers like? Victor Coleman: Well, as I mentioned in my prepared remarks, I mean, San Francisco is seeing an influx of interest levels. And so we have closed one deal, as we mentioned, and we've got three others, two of which are in contract and one is imminently going to be in contract that sort of show indicative interest level of the demand in the marketplace for our asset quality. And we're comfortable with our pricing. I think we've exceeded our expectations in three out of the four assets that we are selling. There is one asset that potentially could be an owner user. And so that pricing is going to be dependent on time line and occupancy for the owner user. But overall, the demand drivers right now for the disposition market from our standpoint are very strong. Operator: Your next question comes from the line of Alexander Goldfarb with Piper Sandler. Alexander Goldfarb: Two questions. First, Harout, on the updated guidance, you guys said it excludes the Quixote restructuring, but that would be a positive to guidance, would it not? So if you were to include that, guidance would increase. I just want to make sure I'm thinking about it right. Harout Diramerian: It would not increase. We -- just like last quarter and the guys provided last quarter, we've removed the impact of the Quixote restructuring. So it's not impacting the numbers that we have shared. So just like our core FFO doesn't include that in our results, and neither does our guidance. Alexander Goldfarb: But isn't that a drag on earnings? And once that drag is away, like you're streamlining the portfolio and there's less cost going forward? I understand the in between, there's a negative, but wouldn't that be a positive longer term? Mark Lammas: Alex, you're precisely right. It is a drag. So that is to say it operates at a loss. So the removal of it improves core FFO, right? Harout Diramerian: So our [ NAREIT ] by it, but our core FFO is not. Alexander Goldfarb: Okay. Now I'm thinking about it right. Second question is, Art, on Seattle, as we think about the interplay between the East Side and CBD, there's -- like we want to get really enthusiastic and say, hey, Seattle could turn quickly and things are going well. At the same time, office moves slower than we all think. As we think about the CBD rebound, do you think this is a later this year, '27 event? Or you think it takes longer than that just based on how office always, as I say, seems to take longer than we'd like? Arthur Suazo: Yes. I mean the good news is the word rebound is being used. We're already seeing green shoots, Alex. We've been talking about the greater Puget Sound with 3 quarters of positive absorption. We saw for the first time in 6 years, the CBD this quarter had positive absorption. We're seeing demand drivers continue to increase across downtown Seattle. And specific to our portfolio, specific to our pipeline, Seattle for the last 2 quarters has the most deals in negotiation than any submarket that we have, including the Valley, including San Francisco. And to us, I mean, that's a tremendous sign of what's to come. And it's really being driven by not just the larger tenants that have come back in the market that we've talked about for the last 2 or 3 quarters. It's really the 10,000 to 30,000 square foot tenants and the expansion of those tenants in the market, which, by the way, is predominantly driven by growth in the professional service firms, the fire sector and governmental firms that are there. So we're seeing it real time, and it's demonstrated by the fact that these -- this last quarter, there were three larger deals done in downtown Seattle. Again, that demonstrates that the larger tenant demand is broadening beyond just Bellevue as people had thought before. Operator: Your next question comes from the line of Caitlin Burrows with Goldman Sachs. Caitlin Burrows: Just a follow-up then on Seattle. Wondering if you can talk about how -- what you're seeing in the Seattle market is or is not impacting activity at Washington 1000 and kind of leasing potential there? Arthur Suazo: Yes. No, it absolutely is. In fact, we're seeing -- as I mentioned to Alex, we have more activity in our pipeline, which is active deals in negotiation in Seattle than any other market. It's over 600,000 square feet for the market. Washington 1000, we had talked about the 9 deals we have in negotiation represents over half of that. So it's 300,000, about 350,000 square feet of deals in different stages that have been impacted, and we feel like we've had more momentum than we ever had. Even as we speak, kind of the last 30 days, tour activity has increased kind of in the dead of summer, tour activity has increased tremendously. Caitlin Burrows: Okay. Got it. And then just on the maybe same-store NOI side, it looks like guidance suggests a deceleration in the second half. I think you guys mentioned earlier that there could be like lease expirations or low retention in the second half. So wondering if you could talk about that a little bit and the expectation for, yes, I guess, like occupancy in the back half. Harout Diramerian: Sure. As far as the guidance goes, what I specifically said not the second half, but primarily the third quarter. We have two large expirations that were -- that are impacting our numbers in the third quarter that we've previously spoken about. This is not the first time we brought it up, and we expect to rebound again in the fourth quarter. Mark Lammas: On the occupancy question, if you're waiting on that answer. We've maintained that midpoint at 81%. When we initially launched that guidance, we had indicated that if you kind of run the math from the beginning to the end of the year, it suggests that we should end the year towards the mid -- kind of mid 80-ish range and that remains intact. Operator: Your next question comes from the line of Dylan Burzinski with Green Street. Dylan Burzinski: Just maybe continuing with that mid-80% occupancy year-end and maybe looking at sort of the 2.4 million square foot leasing pipeline. Is there any sort of large leases that are needed to required to hit that mid-80% occupancy range? And then maybe just sort of diving into that 2.4 million square feet a little bit more. You mentioned an average size of over 20,000 square foot. But are there any sort of leases or potential leases that are well over that 100,000 square foot range? Victor Coleman: Dylan, so yes, we have a series of leases that are the average size that we're talking about, and that's the majority of the portfolio. There are a couple of deals that are multi-tenant floors and leases that are large. But we're still banking on our bread and butter, which is the 20,000 to 30,000 footers that are out there right now. And that seems to be the consistent aspect of where our properties are lined up. Not to say, as Art had mentioned, in Seattle, as an example, I mean, there have been now a handful of deals either closed or about to close over 100,000 feet. And I think there's more for sure in that marketplace behind it. There is clearly more in the city that are larger tenants. Specific to our portfolio, we do have our fair share. But what we're really talking about on the 2.4 million square feet is the average sized tenants, 20,000 to 30,000 footers. Dylan Burzinski: Okay. That's helpful. And then maybe just touching on sort of capital markets. Obviously, you mentioned confident in hitting that $200 million target this year. But as you sort of think about beyond '26, I mean, is there any desire to sort of continue bringing assets to market to potentially help deleverage the balance sheet given the strength that you've seen in capital markets and hopefully, that continues. Victor Coleman: So Dylan, as you know, you've covered us for a long time. We've increased our optionality for the ability for us to lower our debt metrics and the likes of that. And that will continue working on these dispositions right now, confident that they're all going to go through, and we're going to exceed that $200 million number that we talked about at the beginning of the year. We have other options that are out there with assets that could either be put in the marketplace given the activity in the market or we have options on refinancing certain assets or just financing assets that are unencumbered as well. So we've got -- and we've got other alternatives. The nice thing is we do have some time. We're acutely aware of what our needs are and what the demand market is at the end of the day, and I think we're comfortable with our ability to execute on all fronts. Operator: Your next question comes from the line of Seth Bergey with Citi. Seth Bergey: I guess just to start, you kind of talked on the increased activity with the transaction market. Just -- and the depth of the buyer pool, but just what type of money is out there that's interested in office product? Is it core money? Is it opportunistic money? And just how are you seeing that kind of evolve? Victor Coleman: So I think there's three buckets, Seth, that you're looking at. I mean there is a revamped core money that is out there that is looking for the high-end, high quality. It was more driven around WALT, and it still sort of relies on that aspect. I mean the opportunistic dollars are absolutely at the forefront for office looking for value add, which is usually lease-up or repositioning. And then you still have your owner user dollars that are out there that we've seen a fair amount that is either owner user for an occupancy standpoint or conversion standpoint. We did comment in our prepared remarks, we have some options on some assets just like we did at 10950. It's not been our core game plan to convert assets to residential, but we are in the process of a couple of assets in the portfolio right now that we're entitling and the activity is very strong on that as well, given the demand for residential. So I think there are 3 buckets. They're consistent. I believe that the trade dollars, we haven't seen much of the trade dollars, albeit we did do a deal with the 1031 exchange just recently. That was our most recent deal. So the markets are pretty much even across the board for activity and interest levels. Seth Bergey: Great. And then just maybe as leasing activity continues to accelerate, are you seeing any changes in kind of the timing of the conversion from when tenants are touring assets to signing leases? Victor Coleman: I mean I think at the end of the day, it's competitive driven, right? So high-quality stuff, if there's one or two tenants looking at it, the decisions are being made quicker. Brokers are more aware. I will let Art comment but -- and Ken is in the room as well for the Bay Area. But I think what you're finding now is high-quality space is getting grabbed quickly. And as a result of that, a tenant is only looking at when they had maybe 4 or 5 options that were clear and identified. Now if it's 1 or 2, they're moving quicker on 1 and 2 versus, hey, I have 4 different options, I can take my time. Arthur Suazo: Yes, no question. It's demand driven. We're seeing in the markets where actually we are well leased, 94% in Palo Alto and Vancouver and so forth, West L.A. I mean, decisions have to be made quicker by necessity. And so as you start to see that pendulum swing on leverage or I say leverage, you're going to get a truncated deal cycle time, and we're certainly seeing more and more of that. Victor Coleman: Let's not mistaken this to be a landlord's market, though. I want to make sure we're clear. Doors are always open for us to make deals. Operator: Your next question comes from the line of John Kim with BMO Capital Markets. John Kim: I wanted to ask for more color on your 2.4 million leasing pipeline. I think last quarter, you gave some information on how much of that was tech versus AI. So if you could provide some of that? And how much of the pipeline will be addressing either near-term operations or currently vacant space? Arthur Suazo: John, it's Art. Yes. So that we -- first of all, we grew the pipeline, right? We were about 2.3 million even after the large quarter. We've -- the team has done an excellent job of increasing the number. It's interesting, over the last 12 to 18 months, there's been a lot of attention paid to -- for good reason, to tech and the AI ecosystem. But what we're finding now in our active deals and negotiation pipeline is it's evenly distributed. It's about 50-50 AI ecosystem/tech versus non-tech, which is professional service firms, fire sector and now kind of governmental agencies taking more space. And so we have a broader depth of tenants, they're looking for space, which is great. And they're all but not just the tech and the AI ecosystem, they're all looking for some level of expansion down the road. So we feel even better than we did before this last quarter. John Kim: And how much of it is new versus renewal? Arthur Suazo: 70. Right now in our active pipeline at 70-30, 70 new, 30 renewal. John Kim: Okay. And now that your Hollywood Media CMBS has gotten a short-term extension, but it's in special servicing, is your expectation that this will ultimately be refinanced? Or is it a possibility that you would walk away from these assets? Assuming it's the former, do you expect any paydown as part of that extension? Or do you expect pricing to change even though it's not officially in your guidance? Victor Coleman: So John, I want to be clear. We've commented on it -- we're not going to talk about what the pay down. We're not going to talk about the terms until they're finalized, okay? Your assumption is that -- which is wrong, it's a short-term extension, but that's your assumption, okay? So I want to just make sure you're clear on that. In terms of us walking away from the assets or dealing with the refinancing, we'll address that publicly when we get the renewal completed. John Kim: So if it's not short term, how long is the extension for? Victor Coleman: John, as I said, you'll get full terms and conditions on the extension when we announce it. You're not going to get in advance of anybody else. Operator: Your next question comes from the line of Ronald Kamdem with Morgan Stanley. Ronald Kamdem: Just commentary just on AFFO. Obviously, a lot of the leasing has come through nicely. How do you guys think about the CapEx trailing off and sort of the prospects of that AFFO to start kicking into gear as well? Harout Diramerian: Sure. So the FFO, I think we previously stated this that we're still working through the leasing spend. There's a lot of leasing that Art has mentioned that's still coming. The spend usually comes in a little later than we've experienced in the past. So we expect AFFO to be up and down over the next few quarters until all the spend is happening and the cash flow starts coming through from all those leasing. So even though we've done a lot of good leasing, there's still some CapEx to be spent and that leasing hasn't generated cash flow yet, full cash flow. Ronald Kamdem: Helpful. And then just on the studio recovery and so forth, now that, obviously, the Quixote services in Atlanta is out, how do you guys think about sort of the ramp and the ultimate sort of NOI opportunity now with that studio business? Any color there would be helpful. Mark Lammas: Yes. I mean maybe just to make sure our expectations are in line. Our first goal is to get this thing to breakeven. And if you look at our results, and I assume we're talking about the Quixote business because that's really where the opportunity sits is -- if you look at our second quarter results, you'll see that we're now generating somewhere in the neighborhood of, call it, negative $4 million annualized cash NOI. That is with a backdrop of about 70 shows. We think we've -- through all that cost-cutting efforts, we've managed to lower the threshold to get to breakeven in terms of show count. So if we -- if shows can improve very, very modestly, say, from the current 70 level to 80, we think we're at breakeven. When we started the cost-cutting endeavor, shows were around 90. Had they stuck at that level, we would be in positive territory already which is to say, if we were at 90 shows, we should be running at like a positive $4 million or $5 million, we think of positive NOI and cash for Quixote. We're not trying to project where we think show counts are trending. We are just going to continue to focus on costs. We're going to continue to reach for that breakeven point. We think we're getting increasingly close to that as the numbers show. And we'll see where things go from there. Right now, we're in summer. Summer is historically a slow period. We'll see if shows pick up as we get closer to fall. And hopefully, if they do, we'll start to see positive NOI in Quixote. Operator: Your next question comes from the line of Richard Anderson with Cantor Fitzgerald. Richard Anderson: So I'm going to draft off that last question for you, Mark. Do you still approach the Quixote unwind as if it's 70 shows, you're not counting on 80 or 90, and so you -- the process continues. I just want to make sure I understand that. Mark Lammas: That's right. I mean -- or maybe to put even finer point on it, if you look at our guidance, we are assuming no improvement in show count. Richard Anderson: Okay. That's what I figured. I just wanted to confirm. Now what is Quixote -- what does the Quixote platform look like as a long-term hold in terms of lease stages and so on? Like what -- where and what should we expect to be the sort of the ultimate landing point? Mark Lammas: Well, once the announced wind downs are done, it will consist of a fleet of various types of vehicles of about a little bit more than 1,000 vehicles largely located in Los Angeles with some in New York. That will be the remaining going concern, if you will, I'll -- Victor can comment on where we go from there because the first priority is to get that line down done and give ourselves a chance at profitability. And then where we go from there, I think we'll have to explore it. Victor Coleman: Yes. And Rich, just in line with that, it's -- let's not let the numbers get skewed a little bit here or there. We still have market share in the range of 70% in that business. So it's not that we're servicing just our portfolio. We're servicing the industry itself. And so as the industry evolves and if it lays out, to where it is right now, which we underwrote it at, as Mark said, we'll break even relatively shortly if it ends up expanding, then there's options for us to look at that industry and that business around Quixote and look at our alternatives. Richard Anderson: But it's a fleet business at the end of the day, would you be out of the leased studios as well entirely? Victor Coleman: Yes, that's the goal. Mark Lammas: On the Quixote side. Richard Anderson: Yes, understood. And so then my last question is, that's a nice change from $18.6 million loss in 2024 to $4 million currently run rate today. Would you describe yourself as ahead of the game versus when you started to talk about the unwind process? Mark Lammas: I would in that even as we've lost demand, that is to say show counts have gone down over the time frame that we've been cutting costs. The fact that we are approaching breakeven even in that kind of declining demand environment, I think, is a good indicator that our plan is working and because we would be in positive territory, as I indicated, had demand held up. Richard Anderson: Okay. And then just real quickly, will the studio side of Quixote, will that extend into 2027 in terms of the unwind? I mean, year-end this year, will you still be in some studios? Again, I apologize for that. Mark Lammas: No, we don't -- we're in the process. We've got, call it -- we started with 10 leases, mostly staged leases. We have -- we're out of 5 of them, and we are in negotiation on the remaining 5. Operator: Your final question comes from Jamie Feldman with Wells Fargo. Jamie Feldman: Great. So I guess just sticking with the studios. Can you just talk about the potential show pipeline? I think you had commented on now that there's more stability or visibility on labor, maybe you feel better about what's out there. Can you just give us more color of what you think could come to the studios? Victor Coleman: I mean Jamie, listen, as Mark said, it is a quiet time right now. I think the labor comment is absolutely apparent that there are no foreseeable hurdles on that basis. As we're seeing, New York has picked up dramatically. So it's taken some business away from Los Angeles. Our core portfolio is extremely -- performing extremely well and very well leased in terms of what we own. the show counts have been varied. And I think candidly, the state credits have been disappointing in that they haven't really expedited a lot of filming. We'll have to see what happens in fall. There is banter around some federal aid on that basis, and we're in the middle of it as we sit. So we'll see what happens on that side. Los Angeles isn't going anywhere from a production standpoint. And what we have seen is the other ancillary markets are in a much worse situation being Atlanta, New Orleans, Michigan, Toronto. I mean the three core markets really that have held up are New York, Los Angeles and Vancouver. So by fall and when we get through what we're working on right now and seeing the new shows that are launched in fall, I think we'll have a clearer picture of where those numbers are going to shake out on a consistent basis. Jamie Feldman: Okay. And is there anything you can say about Netflix or the Netflix lease? Or is that offline? Victor Coleman: All we can say is that our relationship and conversations are completely ongoing. To the contrary or what other people are talking about. With that, I'd like to thank everybody for participating in this quarter's call, and we look forward to updating you through the next quarter and speaking next quarter. Thank you. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Hudson Pacific Properties, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hudson Pacific Properties wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Hudson Pacific (HPP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Hudson Pacific Properties, Inc.? Here are five stocks we like better. Record leasing improved Hudson Pacific’s office metrics: The company signed 1.3 million square feet of office leases in Q2, including an 891,000-square-foot, 24-year San Francisco government lease. Office occupancy rose 470 basis points sequentially to 82.5%, while the leasing pipeline reached 2.4 million square feet. Financial performance strengthened significantly: Core FFO nearly tripled year over year to $23.1 million, or $0.35 per diluted share, while same-store cash NOI increased 7.5% and interest expense fell 20%. Hudson Pacific raised its 2026 Core FFO guidance to $1.12–$1.20 per share. Studio operations improved as Quixote undergoes restructuring: Studio occupancy reached 74.6%, and core studio NOI rose to $4.6 million, with Hudson Pacific’s share turning positive for the first time in two years. The company plans to exit several Quixote operations and is targeting more than $200 million in asset sales. 3 Stocks Increasing Dividend Payouts Ahead of Interest Rate Cuts Hudson Pacific Properties (NYSE:HPP) reported record office leasing activity in the second quarter of 2026, higher occupancy and a sharp increase in Core FFO, supported by a major San Francisco government lease, improved studio performance and ongoing cost reductions. Chairman and CEO Victor Coleman said the company signed 1.3 million square feet of new and renewal office leases during the quarter, including an 891,000-square-foot, 24-year lease with the City and County of San Francisco at 1455 Market. The agreement provides “nearly a quarter of a century of cash flow visibility,” Coleman said. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Top 3 Michael Burry Stock Picks to Watch in 2024 Office occupancy increased 470 basis points sequentially to 82.5%, while the leased rate rose 440 basis points to 82.8%. The company reported its fourth consecutive quarter of occupancy gains. Same-store net operating income rose 7.5%, reflecting improved results in both office and studio operations. President Mark Lammas said 61% of the quarter’s 1.3 million square feet of office leasing was new leasing and 39% was renewals. Excluding the large San Francisco government lease, Hudson Pacific completed another 402,000 square feet of leasing, of which 71% was new. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Michael Burry's Alibaba Bet and the Broader Market Implications The company’s leasing pipeline stood at 2.4 million square feet at quarter-end, with nearly 70% representing prospective new leases and an average requirement above 20,000 square feet. Art Suazo, executive vice president of leasing, said active deals in the pipeline were evenly divided between technology and artificial-intelligence-related tenants and non-tech tenants, including professional-services, FIRE-sector and government users. GAAP rent spreads increased 17.2%, while cash rent spreads declined 11.4%. Excluding the City and County of San Francisco lease, GAAP rents declined 3.3% and cash rents declined 9.9%, which Lammas attributed primarily to mid-sized Palo Alto leases rolling from pre-pandemic peak rents. He said those rents remained above $80 per square foot. → No Hangover: Revisiting Microsoft One Week After Earnings Hudson Pacific said net effective rents rose 22% from the preceding quarter and 9% from a year earlier, significantly aided by the San Francisco lease. Trailing 12-month net effective rents increased 7% sequentially and 1% year over year. Tour activity rose nearly 20% year over year. Coleman said office demand was broadening in several markets amid limited new construction, though recovery rates differed by region. He pointed to San Francisco’s seventh straight quarter of positive absorption and its largest year-over-year rent increase since 2020. The company also cited positive absorption in Foster City, Redwood City and Redwood Shores, as well as headline leasing activity in Santa Clara. In Los Angeles, Coleman said Hudson Pacific is focusing leasing efforts on West Los Angeles, where activity and rents are stronger than in the wider market. He said demand in the region has been led by financial, insurance and real estate tenants, particularly law firms, along with entertainment and streaming companies and their related businesses. In Seattle, Suazo said the company has seen increased leasing activity across the central business district and has more active deals under negotiation there than in any other Hudson Pacific market. Washington 1000 has approximately 350,000 square feet of deals in various negotiation stages across nine tenants, according to Suazo. The company has coverage for about 65% of the building, compared with 60% in the prior quarter. Downtown Vancouver remained one of the company’s strongest markets, ending the period at effectively 94% leased along with Palo Alto. Coleman said Vancouver’s downtown vacancy was just above 12%, the lowest among Hudson Pacific’s markets. The company’s in-service studio stages were 74.6% leased in the second quarter, up 180 basis points sequentially. The increase was driven by Sunset Pier 94, where the leased rate rose 40 percentage points to 78.5%. Hudson Pacific’s Hollywood stages, including Sunset Las Palmas, were 95.5% leased. Hudson Pacific is restructuring Quixote, its production-services business, and plans to exit Quixote’s leased soundstage facilities, Atlanta-area operations, pro-supplies business and stage ancillary operations such as lighting and grip. Going forward, the company will report core studio NOI based on Sunset Studios and Quixote’s fleet operations in Los Angeles and New York. Core studio NOI rose $3.1 million sequentially and $7 million from a year earlier to $4.6 million. Hudson Pacific’s share turned positive for the first time in two years, reaching $2.2 million. Lammas said Quixote generated negative cash NOI of $18.6 million in 2024. Restructuring efforts have improved its annualized cash NOI run rate by about $14.3 million, leaving the fleet business at slightly more than $4 million of negative annualized cash NOI at current demand levels. He said the business could reach break-even if show counts increased modestly from roughly 70 to 80, although the company’s guidance does not assume an improvement in show counts. Total revenue was $188.3 million, compared with $190 million a year earlier, as the impact of asset sales, particularly the sale of Element L.A., was nearly offset by higher office occupancy. General and administrative expense declined 11% to $12 million. Core FFO nearly tripled to $23.1 million from $8 million a year earlier. Core FFO per diluted share increased 30% to $0.35 from $0.27. Same-store cash NOI increased 7.5% to $90.2 million. Total liquidity was $876 million, including $81 million in cash and $795 million of availability under the credit facility. Interest expense fell 20% year over year, producing $9.7 million in savings. Chief Financial Officer Harout Diramerian said all of Hudson Pacific’s debt is fixed or capped. He also said the Hollywood Media portfolio loan transferred to a special servicer after the quarter ahead of its third-quarter maturity. The borrower and special servicer agreed to terms for a longer-term extension, with a 30-day extension to complete documentation. The company said its outlook maintains the same interest-expense assumptions. Hudson Pacific raised its full-year 2026 Core FFO guidance to $1.12 to $1.20 per diluted share, from a prior range of $1.10 to $1.18. Diramerian said the midpoint increase reflects about $0.01 of second-quarter outperformance and another $0.01 from improved expectations for the second half. The company expects third-quarter lease expirations to pressure occupancy and earnings before a projected fourth-quarter rebound. On dispositions, Coleman said Hudson Pacific sold 2001 Gateway after quarter-end and has three additional Bay Area office assets in contract or negotiation, along with its 10950 Washington residential development site. The company is targeting $200 million of asset sales and said it expects to exceed that amount, citing stronger buyer interest in Bay Area office properties. Hudson Pacific Properties (NYSE: HPP) is a self-managed real estate investment trust focused on the acquisition, development and management of high-quality office and studio properties. The company's portfolio spans strategic West Coast markets in the United States and key markets in Canada, providing space for technology, media and creative companies as well as major film and television producers. As an owner and operator of both traditional office buildings and specialized production facilities, Hudson Pacific seeks to deliver stable income through long-term leases and strategic property enhancements. In its office segment, Hudson Pacific targets markets with strong job growth and limited supply, including Los Angeles, Silicon Valley, San Diego and Seattle, as well as Vancouver, British Columbia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hudson Pacific Properties Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

– Executed 1.3 Million Square Feet of Office Leases – – In-Service Office Occupancy Up 470 bps – – $876 Million of Total Liquidity – – Full-Year Guidance Raised – LOS ANGELES, August 05, 2026--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) (the "Company," "Hudson Pacific," or "HPP") today announced financial and operating results for the second quarter 2026. Victor Coleman, Hudson Pacific's CEO and Chairman, commented, "Our second quarter results reflect the continued execution of our strategy to drive occupancy and unlock the earnings power of our portfolio. We delivered our fourth consecutive quarter of in-service office occupancy gains, up 470 basis points to 82.5%, and executed 1.3 million square feet of office leases, headlined by 891,000 square feet of new and renewal leases with the City and County of San Francisco. This landmark transaction underscores the enduring appeal of our portfolio and provides nearly a quarter century of cash flow visibility. We increased Core FFO on a per share basis by 30% to $0.35, while growing same-store cash NOI by 7.5%, further evidence that our occupancy gains are translating directly into earnings growth. "Our studio business also continued to make progress, highlighted by our Hollywood stages, which remained effectively fully leased at 95.5%. We stayed disciplined on capital allocation, ending the quarter with $876 million of total liquidity while continuing to prune non-core assets. With a reloaded 2.4 million-square-foot leasing pipeline, and broad demand from AI, other technology and professional services tenants alike building across our West Coast markets, we are confident in our path toward sustained FFO per share growth." Financial Results Compared to Second Quarter 2025 Total revenue of $188.3 million compared to $190.0 million, primarily due to asset dispositions, partially offset by improved office occupancy General and administrative expenses of $12.0 million, improved from $13.5 million (excluding $14.3 million of one-time expenses in the prior year associated with cancellation of non-cash compensation agreements), driven by ongoing cost savings initiatives Core FFO grew to $23.1 million, or $0.35 per diluted share, compared to $8.0 million, or $0.27 per diluted share, up approximately 30% on a per share basis FFO increased to $15.6 million, or $0.24 per diluted share, up from $(11.2) million, or $(0.38) per diluted share AFFO improved to $(3.2) million, or $(0.05) per diluted share, up from $(6.1) million, or $(0.20) per diluted share, driven by stronger Core FFO, partially offset by the timing of capital expenditures associated with lease-up activity Same-store cash NOI of $90.2 million grew 7.5% from $83.9 million, driven by higher office and studio occupancy Office Leasing Executed 56 leases totaling 1.3 million square feet (61% new / 39% renewal), headlined by 891,000 square feet of new and renewal leases signed with the City and County of San Francisco at 1455 Market with a weighted average 24-year term GAAP rents on new leases signed increased 17.2% compared to prior levels while cash rents were down 11.4%, largely due to the City and County leases at 1455 Market In-service office portfolio occupancy improved for the fourth consecutive quarter to 82.5% (up sequentially from 77.8%) and leased rate rose to 82.8% (up sequentially from 78.4%) Studio Leasing In-service studio stages were 74.6% leased on a trailing three-month basis (up sequentially from 72.8%) and 74.6% on a trailing 12-month basis (up sequentially from 72.5%) Dispositions Subsequent to quarter-end, sold 2001 Gateway, a 161,000-square-foot, 55% leased office building, part of the Gateway office complex in North San Jose, for $25 million with net proceeds used for general corporate purposes Balance Sheet as of June 30, 2026 Total liquidity of $876.1 million consisting of $80.8 million in unrestricted cash and cash equivalents and full availability of $795.3 million under the unsecured revolving credit facility Net debt to undepreciated book value of 32.4% (HPP's share), with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9% and one remaining 2026 maturity Dividend The Board of Directors declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock 2026 Outlook Hudson Pacific is increasing its full-year 2026 Core FFO outlook to $1.12 to $1.20 per diluted share, from the prior range of $1.10 to $1.18. This updated range excludes the previously announced closures of Quixote's stage and Atlanta operations and the associated stage ancillary and pro-supplies segments from Core FFO. This outlook reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements. It otherwise excludes any impact from new acquisitions, dispositions, debt financings, amendments or repayments, recapitalizations, capital markets activity or similar matters. There can be no assurance that actual results will not differ materially from these estimates. The table below reflects key assumptions for this outlook: The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. Supplemental Information Supplemental financial information regarding Hudson Pacific's second quarter 2026 results may be found on the Investors section of the Company's website at HudsonPacificProperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules. Conference Call The Company will hold a conference call to discuss second quarter 2026 financial results at 9:00 a.m. PT / 12:00 p.m. ET on August 5, 2026. The conference call will be available via live audio webcast on the Investors section of the Company's website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call. About Hudson Pacific Properties Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805548923/en/ Contacts Investor Contact Laura CampbellExecutive Vice President, Investor Relations & Marketing(310) [email protected] Media Contact Laura MurrayVice President, Communications(310) [email protected]

Hudson Pacific Properties (HPP) reported $188.3 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 0.9%. EPS of $0.35 for the same period compares to -$2.87 a year ago. The reported revenue represents a surprise of +0.2% over the Zacks Consensus Estimate of $187.93 million. With the consensus EPS estimate being $0.28, the EPS surprise was +25%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Hudson Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Rentable Square Feet - Total STUDIO: 1,680 versus the two-analyst average estimate of 1,564. Rentable Square Feet - Total in-service office: 12,795 compared to the 13,041 average estimate based on two analysts. Revenues- Office- Rental: $149.6 million compared to the $148.24 million average estimate based on two analysts. The reported number represents a change of -0.6% year over year. Revenues- Office- Service and other revenues: $3.52 million versus $4.5 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -33.6% change. Revenues- Studio- Total: $35.18 million compared to the $35.39 million average estimate based on two analysts. The reported number represents a change of +3% year over year. Revenues- Studio- Service and other revenues: $21.69 million versus $21.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change. Revenues- Office- Total: $153.12 million versus $152.74 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change. Revenues- Studio- Rental: $13.49 million versus $14.07 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.9% change. View all Key Company Metrics for Hudson Pacific here>>> Shares of Hudson Pacific have returned -12.8% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hudson Pacific Properties, Inc. (HPP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenues: $188.3 million, compared to $190 million in the prior year, primarily due to asset dispositions almost entirely offset by improved office occupancy. Core FFO: Nearly tripled to $23.1 million, up from $8 million in the prior year. Core FFO Per Diluted Share: Increased 30% to $0.35, up from $0.27 in the prior year. Same-Store Cash NOI: Grew 7.5% to $90.2 million, compared to $83.9 million in the prior year, driven by higher office and studio occupancy. G&A Expenses: Improved 11% to $12 million, compared to $13.5 million in the prior year. Interest Expense: 20% lower year-over-year, representing $9.7 million of savings. Office Occupancy: Increased 470 basis points sequentially to 82.5%. Office Lease Rate: Climbed 440 basis points sequentially to 82.8%. Office Leases Signed: 1.3 million square feet of new and renewal leases, 61% new and 39% renewal. Rent Spreads: Grew 17.2% on a GAAP basis and decreased 11.4% on a cash basis. Excluding the City and County lease, GAAP rents were off 3.3% and cash rents were down 9.9%. Core Studio NOI: Up $3.1 million sequentially and $7 million year-over-year to $4.6 million, with HPP's share turning positive for the first time in two years at $2.2 million. In-Service Stages Leased: 74.6% during the second quarter, up 180 basis points sequentially. Full-Year 2026 Core FFO Outlook: Raised to a range of $1.12 to $1.20 per diluted share, up from the prior range of $1.10 to $1.18 per diluted share. Warning! GuruFocus has detected 4 Warning Signs with HPP. Is HPP fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record leasing quarter with 1.3 million square feet signed, including a landmark 891,000 square-foot, 24-year lease with the City and County of San Francisco, providing long-term cash flow visibility. Occupancy increased 470 basis points sequentially to 82.5%, marking the fourth consecutive quarter of gains, with same-store NOI up 7.5%. Core FFO nearly tripled to $23.1 million, with a 30% increase on a per-share basis, driven by improved operations and cost reductions. Quixote restructuring is progressing well, improving annualized cash NOI by approximately $14.3 million, closing about 75% of the gap to breakeven. Leasing pipeline reloaded to 2.4 million square feet, with 70% new leases and strong demand from a diversified tenant base including tech, AI, and professional services. Disposition program is on track, with strong buyer demand for Bay Area office assets, and the company has exceeded expectations on three of four assets being sold. Cash rent spreads decreased 11.4% overall, and even excluding the City and County lease, cash rents were down 9.9% due to leases rolling off pre-pandemic peak rents. Third-quarter expirations are expected to negatively impact occupancy and earnings, with a rebound only anticipated in the fourth quarter. The Hollywood Media portfolio loan has transferred to a special servicer, and while terms for an extension are agreed, the final documentation is pending, creating uncertainty. Quixote's noncore businesses, including stage and Atlanta operations, are being wound down, and the fleet business still generates negative annualized cash NOI of approximately $4 million. AFFO is expected to be volatile in the near term due to ongoing leasing capital expenditures, which will delay the full cash flow benefits from recent leasing activity. The studio production landscape remains mixed, with show counts not improving as expected, and the company is not assuming any improvement in show counts in its guidance. Q: Can you provide more color on the West LA market and whether there is a real inflection point happening in demand?A: Victor Coleman (CEO) noted that West LA is a bifurcated marketplace, with Brentwood, Century City, and Beverly Hills performing exceptionally well, while Westwood, Santa Monica, and the Olympic Corridor are slower. He highlighted that with zero new construction, good space is largely leased up, and momentum is expected to drive into other submarkets. Arthur Suazo (EVP of Leasing) added that demand drivers are modestly improving, driven by small to midsized tenants, and that West LA continues to lead the broader LA market. Q: Can you discuss the Hollywood Media portfolio loan, its transfer to special servicing, and how it is reflected in guidance?A: Harout Diramerian (CFO) stated that the company cannot provide specifics until documentation is finalized, but guidance remains unchanged, with the same interest expense expectations. Victor Coleman (CEO) clarified that the extension is not necessarily short-term and that full terms will be announced publicly once the renewal is completed. Q: What is driving the increase in the 2026 core FFO guidance, and are there any other puts and takes?A: Harout Diramerian (CFO) explained that the guidance increase reflects approximately $0.01 of outperformance in Q2 versus initial expectations and $0.01 from improved second-half expectations. He noted that leasing expectations were in line with previous guidance, which is why the increase is modest. Q: Can you elaborate on the demand and depth of buyers in the transaction market for asset dispositions?A: Victor Coleman (CEO) stated that San Francisco is seeing an influx of buyer interest, with one deal closed and three others in contract or imminent. He noted that pricing has exceeded expectations on three of the four assets being sold, with demand drivers for dispositions currently very strong. Q: Regarding the Quixote restructuring, does the updated guidance exclude its impact, and would including it be a positive to FFO?A: Harout Diramerian (CFO) confirmed that the Quixote restructuring impact is excluded from both core FFO results and guidance. Mark Lammas (President) clarified that since Quixote operates at a loss, its removal improves core FFO, and the guidance assumes no improvement in show counts. Q: As we think about the Seattle CBD rebound, do you expect it to be a later this year or 2027 event?A: Arthur Suazo (EVP of Leasing) highlighted that the Puget Sound has seen three consecutive quarters of positive absorption, and the CBD posted its first positive absorption in six years. He noted that Seattle has the most deals in negotiation of any submarket, driven by 10,000 to 30,000 square foot tenants, professional services, and government firms, signaling a broadening recovery. Q: How is the Seattle market activity impacting leasing potential at Washington 1000?A: Arthur Suazo (EVP of Leasing) stated that Seattle has over 600,000 square feet of active deals in negotiation, with Washington 1000 representing about 350,000 square feet across nine tenants. He noted that tour activity has increased tremendously in the last 30 days, even during the summer, indicating strong momentum. Q: Can you discuss the expectation for occupancy and same-store NOI in the second half, given the guidance suggests a deceleration?A: Harout Diramerian (CFO) attributed the deceleration to two large expirations impacting Q3, with a rebound expected in Q4. Mark Lammas (President) added that the company maintains its midpoint occupancy guidance of 81%, with expectations to end the year in the mid-80s range. Q: Is there any large lease required to hit the mid-80% occupancy target, and what is the composition of the 2.4 million square foot leasing pipeline?A: Victor Coleman (CEO) stated that the pipeline is primarily composed of 20,000 to 30,000 square foot tenants, with a few larger deals. Arthur Suazo (EVP of Leasing) added that the pipeline is evenly distributed between tech/AI and non-tech tenants, including professional services and government agencies, with 70% new leases and 30% renewals. Q: What type of capital is interested in office product, and how is the buyer pool evolving?A: Victor Coleman (CEO) identified three buyer buckets: revamped core money seeking high-quality assets, opportunistic dollars focused on value-add opportunities, and owner-user buyers for occupancy or conversion. He noted that 1031 exchange activity is also present, and the markets are even across the board for activity and interest levels. Q: Are you seeing changes in the timing of tenant decisions from touring to signing leases?A: Victor Coleman (CEO) noted that decisions are being made quicker for high-quality space with limited options, as tenants move faster when they have fewer choices. Arthur Suazo (EVP of Leasing) added that in well-leased markets like Palo Alto and Vancouver, decisions are made quicker by necessity, leading to truncated deal cycle times. Q: How do you think about CapEx trailing off and the prospects for AFFO to kick into gear?A: Harout Diramerian (CFO) explained that the company is still working through leasing spend, which typically comes in later than in the past. He expects AFFO to be up and down over the next few quarters until the CapEx is spent and cash flow from new leases begins to generate. Q: What is the ultimate NOI opportunity for the studio business now that Quixote's Atlanta operations are being wound down?A: Mark Lammas (President) stated that the first goal is to get Quixote to breakeven, with current annualized cash NOI at negative $4 million. He noted that if show counts improve modestly from 70 to 80, the business would reach breakeven, and if shows had stayed at 90, it would be running at positive $4 million to $5 million. Q: Do you still approach the Quixote unwind as if it's 70 shows, For the complete transcript of the earnings call, please refer to the full earnings call transcript.

LOS ANGELES, June 24, 2026--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced it will release second quarter financial results before market open on Wednesday, August 5, 2026. The company will hold a conference call to discuss the results at 9:00 a.m. PT / 12:00 p.m. ET the same day. The conference call will be available via live audio webcast on the Investors section of the company’s website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call. About Hudson Pacific Properties Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260624372145/en/ Contacts Investor Contact: Laura CampbellExecutive Vice President, Investor Relations & Marketing(310) [email protected] Media Contact: Laura MurrayVice President, Communications(310) [email protected]

LOS ANGELES, June 08, 2026--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that its Board of Directors has declared a dividend for the second quarter of 2026 on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share, which will be paid on June 29, 2026 to preferred stockholders of record on June 18, 2026. About Hudson Pacific Properties Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com. Forward-Looking Statements This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260608984380/en/ Contacts Investor Contact Laura CampbellExecutive Vice President, Investor Relations & Marketing(310) [email protected] Media Contact Laura MurrayVice President, Communications(310) [email protected]

Interested in Hudson Pacific Properties, Inc.? Here are five stocks we like better. Hudson Pacific saw improving office fundamentals in Q1, with 554,000 square feet of leases signed, occupancy rising to 77.8%, and the leasing pipeline reaching 2.4 million square feet. Management said AI- and tech-driven demand is especially strong in the Bay Area and Seattle. The company raised full-year 2026 Core FFO guidance to $1.10 to $1.18 per diluted share from $0.96 to $1.06, citing better-than-expected first-quarter results and benefits from reclassifying certain Quixote operations. Hudson Pacific also ended the quarter with $933 million in total liquidity. Studio performance was mixed but restructuring is expected to help, as prime Hollywood stages remained highly leased while Quixote-related revenue fell. Hudson Pacific said it will wind down certain Quixote operations, a move expected to improve annual cash NOI by about $5.8 million. 3 Stocks Increasing Dividend Payouts Ahead of Interest Rate Cuts Hudson Pacific Properties (NYSE:HPP) executives said the company began 2026 with improving office occupancy, stronger leasing activity and a higher full-year funds-from-operations outlook, while continuing to streamline its studio-related operations and pursue non-core asset sales. Chairman and Chief Executive Officer Victor Coleman said on the company’s first-quarter earnings call that Hudson Pacific “delivered improvement in both occupancy and cash flow” and sequentially increased FFO in total and on a per-share basis. He pointed to more than 500,000 square feet of office leasing, a third consecutive quarter of occupancy gains, reductions in general and administrative expenses and total liquidity above $930 million. → Rocket Lab Posts Record Q1 Revenue, Raises Q2 Guidance Top 3 Michael Burry Stock Picks to Watch in 2024 Coleman said West Coast office demand is being supported by venture capital investment, particularly in artificial intelligence and technology. He cited $267 billion of venture capital deployed in the first quarter and said that capital is translating into leasing demand across Hudson Pacific’s markets. President Mark Lammas said Hudson Pacific signed 554,000 square feet of office leases during the quarter, with 49% of that volume coming from new leases. The company’s in-service office portfolio occupancy rose to 77.8%, up 150 basis points sequentially, while the lease rate increased to 78.4%, up 140 basis points. → Beyond NVIDIA: Picks-and-Shovels AI Plays with Strong Momentum Michael Burry's Alibaba Bet and the Broader Market Implications Lammas said GAAP rents increased 1.8%, while cash rents declined 2.4%, representing sequential improvement in both measures. Net effective rents rose 4% sequentially but were down 2% from a year earlier, a comparison he said was affected by a large prior-year lease with the City and County of San Francisco at 1455 Market. The company’s leasing pipeline rose to 2.4 million square feet, up 13% from a year earlier, and tours totaled 2.2 million square feet in the quarter, up more than 30% year-over-year. Lammas said a third lease with the City and County of San Francisco, which would effectively absorb the remaining vacancy at 1455 Market, remained on track to be finalized in the second quarter. → 3 Ways to Target the Resources Powering AI and Data Centers Hudson Pacific also reported close to 60% coverage through deals, leases, letters of intent or proposals on roughly 600,000 square feet of expirations for the rest of the year, including full coverage on PayPal at Fourth and Traction and 80% coverage on Dell at 875 Howard. Coleman said the Bay Area remains the strongest market in the company’s footprint. He said San Francisco recorded 2.3 million square feet of positive absorption and 4.1 million square feet of leasing activity, with AI-related tenants accounting for nearly 60% of total volume. He also said asking rents in San Francisco rose nearly 4% year-over-year. In Silicon Valley and the peninsula, Coleman said momentum is continuing, particularly in Redwood City and Foster City, where the company has assets. He said Puget Sound posted its second straight quarter of positive absorption, with downtown Seattle beginning to capture more AI and technology demand. Los Angeles fundamentals remain challenged, he said, though Hudson Pacific has limited near-term availability there. In response to analyst questions, Coleman said demand is coming from both larger tenants and smaller growth-oriented technology companies. Executive Vice President of Leasing Art Suazo said AI-related demand has increased within the company’s pipeline and that many smaller tenants are seeking ready-built, highly amenitized space. At Washington 1000 in Seattle, Lammas said tenant interest has increased meaningfully and that the company now has coverage for about 60% of the project. Hudson Pacific plans to deliver 70,000 square feet of move-in-ready suites in the second quarter. Suazo said seven deals are in negotiation at the property, including four tied to ready-built suites, with two of those in later-stage negotiations. Hudson Pacific’s studio business showed strength at prime locations but continued to face pressure from Quixote operations. Coleman said U.S. production activity remains subdued, but added that the company’s Hollywood stages were 97% leased and that Sunset Pier 94 reached 100% leased during its first quarter of operations. Lammas said in-service stages were 72.8% leased over the trailing three months. Excluding Pier 94, which entered service during the quarter, stages would have been 78.2% leased, up 370 basis points sequentially. The company’s Hollywood stages at Sunset Bronson, Sunset Gower and Sunset Las Palmas were 97% leased over the trailing three months, up 280 basis points. Studio revenue declined $2.4 million sequentially, which Lammas attributed to lower demand for Quixote’s lighting and grip, pro supplies and fleet. Expenses declined $2.1 million, resulting in a $300,000 sequential decrease in studio NOI to $1.5 million. Excluding Quixote, Sunset Studio NOI increased $1 million sequentially and $1.8 million year-over-year to $7.4 million. The company said Quixote will wind down leased soundstage facilities and Atlanta-area operations. Lammas said that move would equate to approximately $5.8 million of annual cash NOI improvement. Coleman said the company remains committed to making Quixote earnings neutral by year-end. Chief Financial Officer Harout Diramerian said first-quarter total revenue was $181.9 million, compared with $198.5 million a year earlier, primarily reflecting the sale of Element L.A. and office tenant move-outs, particularly Uber’s departure from 1455 Market midway through the first quarter of 2025. General and administrative expenses declined 32% to $12.6 million from $18.5 million in the prior year. Core FFO was $16.5 million, or $0.25 per diluted share, compared with $12.9 million in the prior-year period. Same-store cash NOI was $85.2 million, down from $92 million a year earlier, driven by lower office revenue from tenant move-outs and partially offset by higher studio revenue from increased production activity at Hollywood assets. Hudson Pacific ended the quarter with $933 million of total liquidity, including $138 million of cash and full availability on its $795 million credit facility. Diramerian said interest expense declined 13% year-over-year, producing $5.5 million of savings, and that all of the company’s debt was fixed or capped. The company raised its full-year 2026 Core FFO outlook to $1.10 to $1.18 per diluted share, up from its prior range of $0.96 to $1.06. Diramerian said the increase reflects about $0.04 of first-quarter outperformance from Super Bowl parking revenue, lower repairs and maintenance expense and favorable CAM reconciliations, as well as a $0.09 benefit from reclassifying certain Quixote operations as discontinued operations beginning in the second quarter. Coleman said Hudson Pacific is targeting approximately $200 million of FFO-accretive, non-core dispositions this year. He said the company has a buyer and agreed price for 10950 Washington and has another asset under contract. During the question-and-answer portion of the call, Coleman said the company plans a full disposition of 10950 Washington after considering both joint-venture and outright-sale options. He said the agreed price exceeded the company’s expectations. Lammas also said Hudson Pacific is exploring adaptive reuse opportunities. The company plans to submit for re-entitlement of the 164,000-square-foot office component at 901 Market as residential in the second quarter, with an expected resolution by year-end. It is also evaluating potential mixed-use redevelopment of excess surface parking at select assets in Palo Alto, Redwood Shores and Foster City. Coleman said the quarter shows Hudson Pacific’s markets are recovering and that the company’s actions are aimed at creating “a clear and credible path to FFO growth” through the rest of 2026. Hudson Pacific Properties (NYSE: HPP) is a self-managed real estate investment trust focused on the acquisition, development and management of high-quality office and studio properties. The company's portfolio spans strategic West Coast markets in the United States and key markets in Canada, providing space for technology, media and creative companies as well as major film and television producers. As an owner and operator of both traditional office buildings and specialized production facilities, Hudson Pacific seeks to deliver stable income through long-term leases and strategic property enhancements. In its office segment, Hudson Pacific targets markets with strong job growth and limited supply, including Los Angeles, Silicon Valley, San Diego and Seattle, as well as Vancouver, British Columbia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hudson Pacific Properties Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Hudson Pacific Properties (HPP) reported $181.85 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 8.4%. EPS of $0.25 for the same period compares to -$3.71 a year ago. The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $183.89 million. With the consensus EPS estimate being $0.18, the EPS surprise was +36.39%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Hudson Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Rentable Square Feet - Total STUDIO: 1,680 versus the two-analyst average estimate of 1,448. Rentable Square Feet - Total in-service office: 12,905 compared to the 13,178 average estimate based on two analysts. Revenues- Office- Rental: $145.23 million versus the two-analyst average estimate of $145.06 million. The reported number represents a year-over-year change of -8.3%. Revenues- Office- Service and other revenues: $3.45 million compared to the $4.5 million average estimate based on two analysts. The reported number represents a change of -49.5% year over year. Revenues- Studio- Total: $33.18 million versus $34.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.2% change. Revenues- Studio- Service and other revenues: $19.38 million versus the two-analyst average estimate of $20.75 million. The reported number represents a year-over-year change of -1.1%. Revenues- Office- Total: $148.67 million versus the two-analyst average estimate of $149.56 million. The reported number represents a year-over-year change of -10%. Revenues- Studio- Rental: $13.8 million compared to the $13.51 million average estimate based on two analysts. The reported number represents a change of +1.1% year over year. Segment Profit- Studio: $1.47 million compared to the $0.57 million average estimate based on two analysts. Segment Profit- Office: $78.85 million versus $76.75 million estimated by two analysts on average. View all Key Company Metrics for Hudson Pacific here>>> Shares of Hudson Pacific have returned +100.2% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hudson Pacific Properties, Inc. (HPP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Delivered a third consecutive quarter of occupancy gains, driven by robust leasing activity in the Bay Area and Silicon Valley, with AI-related tenants accounting for nearly 60% of volume in San Francisco. Attributed performance outperformance to decisive cost-cutting measures, including a 32% year-over-year reduction in G&A and operational streamlining at Coyote. Leveraged a 'flight to quality' in the studio sector, achieving 97% occupancy across Hollywood stages despite a broader subdued U.S. production environment. Advanced a capital recycling strategy focused on FFO-accretive dispositions, targeting $200 million in non-core asset sales to maintain liquidity and strengthen the balance sheet. Observed a positive inflection in the Puget Sound market as tech demand extends from the Eastside to the Seattle urban core. Maintained a patient stance in the challenged Los Angeles market, supported by limited near-term availability concentrated in high-tier assets. Increased full-year core FFO guidance to $1.10–$1.18 per share, reflecting Q1 outperformance and the reclassification of Coyote's underperforming operations. Anticipates continued occupancy growth supported by a 2.4 million-square-foot leasing pipeline and close to 60% coverage on remaining 2026 expirations. Targets making Coyote earnings-neutral by year-end through the wind-down of leased soundstages and Atlanta-area operations, expected to yield $5.8 million in annual cash NOI improvement. Evaluating adaptive reuse and densification opportunities, including residential re-entitlement of office components and redevelopment of excess surface parking in the Bay Area. Assumes a sequential improvement in same-store NOI throughout the year as new leases commence, following Q1 which was expected to be the trough. Reclassified Coyote's leased soundstages and Atlanta operations as discontinued operations, providing a $0.09 benefit to core FFO guidance. Agreed to an outright sale of 10950 Washington after receiving offers that exceeded expectations for a joint venture structure. Ongoing negotiations regarding the Hollywood Media portfolio loan maturity and Netflix's long-term space requirements. Removed 901 Market and 6040 Sunset from office service for repositioning and residential re-entitlement, impacting sequential occupancy metrics by approximately 10-20 basis points. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management noted a shift toward value-add buyers seeking vacant assets in the Bay Area, while Seattle is seeing interest in leased assets requiring repositioning. Southern California activity remains minimal with deals showing good price-per-foot numbers but unfavorable yield numbers. Victor Coleman clarified that Netflix's potential purchase of the Radford campus is for a soundstage-heavy facility and will not interfere with their existing relationship or ongoing space discussions. Activity has increased significantly with seven deals in negotiation, including four for move-in-ready spec suites delivering in the second quarter. The project is benefiting from tightening supply in Bellevue and a decrease in available trophy sublease space in downtown Seattle. The $0.09 guidance benefit stems from removing projected losses of the discontinued operations from core FFO. Management expects to incur some one-time expenses throughout the year to cost-effectively exit leases and wind down operations. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.