Hudson Pacific Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $180.9 million for the quarter, down from $186.6 million in the prior year period, primarily due to asset dispositions partially offset by improved office occupancy and studio production activity.
• General and administrative expenses decreased to $12.3 million from $13.7 million, driven by cost savings initiatives.
• Net loss was $218.1 million ($3.38 per diluted share), compared to a net loss of $136.5 million ($2.12 per diluted share) in the prior year, primarily due to non-cash impairments and a loss on the sale of office properties.
• Core FFO increased to $18.6 million ($0.28 per diluted share), up approximately 8% year-over-year from $16.7 million ($0.26 per diluted share), driven by improved same-store NOI and lower non-real estate depreciation due to the exit of non-core Quixote operations.
• FFO increased to $21.4 million ($0.33 per diluted share) from $14.6 million ($0.22 per diluted share).
• Adjusted Funds from Operations (AFFO) was $(5.1) million ($(0.08) per diluted share), compared to $12.3 million ($0.19 per diluted share) in the prior year, primarily reflecting higher capital expenditures associated with lease-up activity.
• Same-store cash NOI grew 8.3% year-over-year to $85.2 million from $78.7 million.
• Net debt to undepreciated book value (HPP's share) was 32.1% as of September 30, 2026, with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9%.
• Pro forma debt (HPP's share) was $2.7 billion, down $425.0 million (14%) from the prior year.

Guidance and Future Outlook:

• Full-year 2026 Core FFO guidance was raised and narrowed to $1.15 to $1.21 per diluted share from the prior range of $1.12 to $1.20.
• The outlook assumes average in-service office occupancy between 82.0% and 84.0% and same-store cash NOI growth between 0.00% and 1.00%.
• Management expects the maturity of the leasing pipeline to extend earnings growth into 2027.
• The outlook conservatively excludes rent from Weil, Gotshal & Manges for the balance of the year, despite no indication of non-payment.
• The 200 basis point improvement in average in-service office occupancy and 175 basis point improvement in same-store property cash NOI growth reflect the impact of asset sales (875 Howard and Skyport Plaza) and the temporary removal of Fourth & Traction for seismic upgrades.

Business Segments and Product Lines:

• Office Leasing: Executed 533,708 square feet of leases (74 total) in the quarter, with 49% new and 51% renewal. GAAP and cash rents on new and renewal leases increased 6.0% and 0.4%, respectively, compared to prior leases for the same space.
• Office Occupancy: In-service office occupancy reached 85.6%, up 310 basis points sequentially, marking the fifth consecutive quarter of growth. The leased rate rose to 86.1%, up 330 basis points sequentially.
• Studio Leasing: In-service studio stages were 74.7% leased on a trailing three-month basis and 75.1% on a trailing 12-month basis. Hollywood studio stages remained 95.0% leased, while Sunset Pier 94 Studios reached 82.2% leased.
• New Agreements: Signed a 65,000-square-foot renewal and expansion lease through 2033 with Rivian and Volkswagen Group Technologies at Clocktower Square in Palo Alto.
• Re-Entitlement: Secured entitlements to convert approximately 164,000 square feet of office space at 901 Market in San Francisco into 136 residential units above existing ground-floor retail.

Market and Competitive Landscape:

• The leasing pipeline remains above 2 million square feet, with more than 1 million square feet in advanced stages, nearly twice the level of a year ago.
• Hudson Pacific Properties was named a GRESB Sector Leader for the sixth consecutive year, earning a 5-Star rating in the 2026 Real Estate Assessment.
• The company ranked 1st in the US Office, Listed peer group for the second consecutive year, and 1st among all listed participants in the Americas.

Risks and Challenges:

• The company has conservatively excluded rent from Weil, Gotshal & Manges from the full-year outlook due to the expiration of its 38,000-square-foot lease subsequent to quarter-end.
• Actual results may differ materially from estimates due to assumptions regarding rental rates, occupancy levels, and the earnings impact of referenced events.
• The company does not provide a reconciliation for forward-looking non-GAAP measures (Core FFO) due to the inherent difficulty of forecasting the timing and amount of various items.

Management Commentary and Tone:

• CEO Victor Coleman stated that results build on momentum from the previous quarter, citing 2.4 million square feet of office leases signed year-to-date, up 40% from the first nine months of the prior year.
• Management highlighted enhanced financial flexibility, noting a 14% year-over-year reduction in pro forma share of debt and $840 million in liquidity.
• The tone regarding the studio business was positive, noting continued traction with Sunset Pier 94 and steady Hollywood stage occupancy.

Other Key Points:

• Dispositions: Sold 2001 Gateway in North San Jose and 875 and 899 Howard in San Francisco for an aggregate $90.5 million. Subsequently sold Skyport Plaza in North San Jose for $75.5 million.
• Debt Repurchase: Subsequent to the quarter, repurchased $200.0 million of senior notes due 2027 and 2028 at a discount to par.
• Liquidity: Total liquidity was $955.8 million as of September 30, 2026. Pro forma for subsequent asset sales and debt repurchases, liquidity stands at $840.4 million.
• Dividend: The Board declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock.
• Joint Venture: Extended the $1.1 billion Hollywood Media Portfolio CMBS loan to November 2027 with no principal paydown and an unchanged spread, with SOFR fixed at 3.50%.
• Weil, Gotshal & Manges: Following the expiration of its lease, this tenant would comprise 0.9% of HPP's share of annualized base rent, dropping to #14 among the Company's 15 largest office tenants.