Hudson Pacific Properties 1Q26 Review

Hudson Pacific Properties (HPP) reported a 1Q26 Core FFOPS beat and raised its FY26 guidance, largely due to the reclassification of its Quixote segment as discontinued operations. While leasing momentum in San Francisco is being bolstered by AI-related demand, the stock remains Neutral-rated due to elevated leverage and upcoming 3Q26 debt maturities.

Key Takeaways

• 1.HPP reported 1Q26 Core FFOPS of $0.25, beating consensus estimates of $0.16-$0.18, primarily due to lower non-real estate depreciation leakage.
• 2.FY26 Core FFOPS guidance was raised to $1.10-$1.18, with approximately 69% of the increase driven by the reclassification of Quixote as discontinued operations.
• 3.Leasing momentum is strong, particularly from AI tenants who accounted for 60% of San Francisco leasing volume in 1Q.

Table of Contents

• FY Guidance
• 1Q26 highlights
• Key Takeaways from the earnings call
• Valuation and estimate changes
• Disclosure Appendix

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