Hudson Pacific Properties Q2 revenue narrowly misses estimates
Overview
Hudson Pacific Q2 revenue declines, missing analyst expectations, per LSEG data
Net loss widens to $83.1 mln, impacted by asset sales and lower occupancy
Company maintains $1.0 bln liquidity, executes 558,000 sq ft of leases
Outlook
Company projects Q3 FFO of $0.01 to $0.05 per diluted share
Hudson Pacific expects full-year same-store cash NOI to decline 11.5%-12.5%
Company's Q3 outlook excludes impacts from new acquisitions or financings
Result Drivers
LEASING ACTIVITY - Executed 558,000 sq ft of new and renewal leases, driven by demand from tech and media tenants
STUDIO BUSINESS - Positive traction with increased leasing percentages for in-service studios, excluding Sunset Glenoaks
LIQUIDITY POSITION - Maintains $1.0 bln in liquidity, supporting operations despite revenue decline
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $190 mln | $191 mln (7 Analysts) |
Q2 EPS |
| -$0.41 |
|
Q2 Net Income |
| -$83.10 mln |
|
Q2 Adjusted FFO |
| $8 mln |
|
Q2 FFO |
| -$11.20 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "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 $3.00, about 19.7% above its August 4 closing price of $2.41
Press Release: ID:nBw3nZcGVa
