Hudson Pacific Properties reported a net loss of $80.3 million for the first quarter of 2025, a significant increase from the $53.4 million loss in the same period of 2024. Net Operating Income (NOI) decreased by 18% year-over-year to $85.2 million.
Office NOI declined by 9.0% to $92.9 million, primarily due to lease expirations in 2024. Studio NOI shifted from an income of $1.8 million in Q1 2024 to a loss of $7.7 million in Q1 2025, impacted by lower revenues from production pauses and a $5.9 million one-time lease termination fee.
Despite the overall decline, office leasing activity reached 630,000 square feet in Q1 2025, the highest quarterly volume since Q2 2022, with new leasing accounting for 66% of the activity. The cash rent spread was negative 13.6%, or negative 8.8% when adjusted for a large lease.
The company maintained $86.5 million in cash and $702 million of undrawn capacity on its revolving credit facility. It also secured a $475 million CMBS loan in Q1 2025, using proceeds to repay a $168 million property loan and reduce the revolver.
For the second quarter of 2025, HPP guided to FFO per diluted share in the range of $0.03 to $0.07, a sequential decrease from Q1's $0.09. Full-year same-store property cash NOI growth is anticipated to be negative 12.5% to 13.5%.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.