Overview

• US office and studio REIT's Q1 revenue fell to $181.9 mln, but was ahead of analyst expectations

• Company posted Q1 net loss, narrowed from prior year on cost reductions

• Hudson Pacific raised full-year 2026 Core FFO outlook on leasing momentum, operational streamlining

Outlook

• Hudson Pacific raises full-year 2026 Core FFO outlook to $1.10-$1.18 per diluted share

• Company expects average in-service office occupancy of 80%-82% for full-year 2026

• Company forecasts 2026 same-store property cash NOI growth between (1.75)% and (0.75)%

Result Drivers

• OFFICE TENANT MOVE OUTS & ASSET SALE - Co said lower revenue was mainly due to the Element LA office disposition and office tenant move outs, partially offset by stable studio production activity

• COST DISCIPLINE - General and administrative expenses fell 32% yr/yr, driven by cost savings initiatives

• LEASING MOMENTUM - Co executed over 550,000 sq ft of office leases and reported improved occupancy for the third straight quarter

Company press release: ID:nBw2kyZ5xa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$181.90 mln	$179.53 mln (3 Analysts)
Q1 EPS		-$0.82
Q1 Net Income		-$53.10 mln
Q1 Adjusted FFO		$16.50 mln
Q1 FFO		$18 mln

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy."

• Wall Street's median 12-month price target for Hudson Pacific Properties Inc is $10.50, about 1.2% below its May 6 closing price of $10.63

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