Hudson Pacific Properties (NYSE: HPP) announced a 1‑for‑7 reverse stock split that will take effect at 5:00 p.m. Eastern Time on December 1, 2025. The split consolidates every seven shares into one, reducing the number of shares outstanding while preserving the company’s market capitalization. Trading on a split‑adjusted basis will begin on the New York Stock Exchange on December 2, 2025, under the existing ticker symbol HPP.
The reverse split is intended to support a healthier share price and improve liquidity, a common strategy for companies whose stock has fallen below the perception threshold of institutional investors. Hudson Pacific’s share price was $1.88 at market close on November 17, 2025—above the NYSE’s $1 minimum—but the company’s financial performance has been weak, with a $136 million loss reported for the third quarter of 2025 and a diluted earnings‑per‑share of –$1.97 for the trailing twelve months. The split does not alter the company’s dividend policy; HPP has suspended its common‑stock dividend since the third quarter of 2024 and continues to pay dividends on its Series C cumulative preferred stock.
The announcement also affects the number of shares underlying the company’s equity awards and incentive plans. Hudson Pacific’s Amended and Restated 2010 Incentive Award Plan, approved by stockholders on May 14, 2025, increased the pool of available shares and extended the grant award period through 2035. The reverse split will proportionally adjust the share count for all outstanding awards, ensuring that employees and executives retain the same economic value in the new share structure.
Market reaction to the announcement was negative, reflecting investor concerns about the company’s ongoing financial distress. Hudson Pacific’s third‑quarter loss and negative Altman Z‑score signal potential liquidity challenges, while the suspension of the common‑stock dividend underscores a shift toward preserving capital. The reverse split, while improving the nominal share price, does not address these underlying issues and is therefore viewed as a cosmetic measure rather than a substantive turnaround.
The company’s market capitalization as of November 17, 2025, was reported at approximately $626 million, a figure that has fluctuated in recent months. The reverse split will not change the overall value of the company but will reduce the number of shares outstanding, potentially making the stock more attractive to institutional investors who prefer a higher per‑share price. However, the company’s negative earnings trajectory and the absence of a common‑stock dividend suggest that investors will continue to scrutinize Hudson Pacific’s financial health in the coming quarters.
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