NYSE$HPP

Hudson Pacific Properties Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Hudson Pacific reported financial results, showing revenue increase driven by the acquisition of Quixote, but also a net loss due to higher interest expense and lower production activity.

Hudson Pacific Properties reported a mixed first quarter of 2023, with revenue increasing by 3.2% year-over-year to $252.3 million, primarily due to the acquisition of Quixote. However, the company experienced a net loss attributable to common stockholders of $20.4 million, or $0.14 per diluted share, compared to a net loss of $19.8 million, or $0.13 per diluted share in the same period last year. The company is also working to minimize the impact of the national writers strike as it relates to its studio business.

  • Total revenue increased by 3.2% to $252.3 million compared to the first quarter of 2022.
  • Net loss attributable to common stockholders was $20.4 million, or $0.14 per diluted share.
  • FFO, excluding specified items, was $49.7 million, or $0.35 per diluted share, compared to $75.2 million, or $0.50 per diluted share in the prior year.
  • Executed 75 new and renewal leases totaling 344,069 square feet, with over 80% of that activity in the San Francisco Bay Area.

Headline financials

Total Revenue

$252M

Previous: $245M+3.2%
EPS (adj)

$0.35

Previous: $0.50-30.0%
Capital Expenditures

-$77.2M

Previous: -$56.4M-36.9%
Free Cash Flow

-$92M

Previous: -$64M-43.8%
Net Income

-$14.8M

Previous: -$7.62M-94.6%
Operating Income

-$86.2M

Previous: -$53.4M-61.4%
Gross Profit

$141M

Previous: $152M-7.2%
Cash & Equivalents

$163M

Previous: $138M+18.7%
Total Assets

$9.12B

Previous: $9B+1.3%
Stock-Based Comp

$5.24M

Previous: $5.33M-1.7%

Revenue & EPS history

Hudson Pacific · Revenue · Quarterly

$252M

Q1 2023+3.2%vs Q1 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Hudson Pacific · $663M total across 2 segments · Q1 2023

  • Studio revenues
    $456M+1278.0%
  • Office revenues
    $207M-2.3%

Forward guidance

The Company's 2023 full-year FFO outlook excluded the impact of a disruption in studio operations in the event related union negotiations led to a strike and halt in production. Due to the uncertainty around the duration of a strike, the Company will continue to provide certain assumptions relevant to its full year 2023 office outlook, but will no longer provide an outlook for 2023 full-year FFO or studio-related assumptions.

Tailwinds

  • Growth in office same-store cash NOI between 1.00% and 2.00%.
  • GAAP non-cash revenue (straight-line rent and above/below-market rents) between $18,000 and $28,000.
  • General and administrative expenses between $(70,000) and $(76,000).
  • Interest expense between $(204,000) and $(214,000).
  • Weighted average common stock/units outstanding—diluted between 143,000,000 and 144,000,000.

Headwinds

  • GAAP non-cash expense (straight-line rent expense and above/below-market ground rent) between $(7,100) and $(9,100).
  • Non-real estate depreciation and amortization between $(34,000) and $(36,000).
  • FFO from unconsolidated joint ventures between $500 and $2,500.
  • FFO attributable to non-controlling interests between $(43,500) and $(47,500).
  • FFO attributable to preferred units/shares between $(21,000) and $(21,000).

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.3%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+0.0%

Avg return

30 days after

47%

26 / 55 earnings

Positive

+20.9%

Q4 2025

Best reaction

-13.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-6.3%-0.8%+16.9%
Q4 2025+20.9%+17.5%-11.9%
Q3 2025+8.2%-2.2%-14.4%
Q1 2025-0.4%-2.2%+3.1%
Q4 2024-3.5%-1.0%-6.1%
Q3 2024-5.2%-17.1%-25.7%
Q2 2024-13.9%-19.6%-11.2%
Q1 2024-6.2%-6.4%-15.3%
Q4 2023-12.7%-5.7%-13.1%
Q3 2023+8.5%+19.1%+50.4%
Q2 2023-2.9%+2.7%+16.0%
Q1 2023-8.4%-16.1%+4.4%
Q4 2022-3.3%-2.2%-26.6%
Q3 2022-3.0%-1.6%+2.0%
Q2 2022+0.7%+3.2%-4.3%
Q1 2022-3.6%-10.4%-20.2%
Q4 2021+3.9%+2.1%+7.7%
Q3 2021-4.1%-5.4%-1.3%
Q2 2021-2.8%+0.0%+1.0%
Q1 2021-2.8%-2.0%+4.6%
Q4 2020+0.1%+5.3%+14.9%
Q3 2020-1.1%+7.3%+38.0%
Q2 2020-3.1%-5.2%-3.0%
Q1 2020-1.0%+1.3%+21.3%
Q4 2019-1.4%-6.7%-52.8%
Q3 2019+2.8%+3.1%+2.4%
Q2 2019-2.9%-5.3%-4.0%
Q1 2019+0.6%-0.3%-4.8%
Q4 2018+1.4%+2.4%+2.5%
Q3 2018-1.6%-0.4%+1.8%
Q2 2018-2.2%+0.5%-1.2%
Q1 2018+2.7%+4.5%+7.7%
Q4 2017+4.2%+4.1%+10.8%
Q3 2017+1.7%+3.3%+5.5%
Q2 2017+0.9%-0.7%+0.5%
Q1 2017-0.2%-2.2%-1.6%
Q4 2016+1.2%+2.6%-0.4%
Q3 2016+0.5%+2.2%+7.3%
Q2 2016+1.0%+0.5%+0.6%
Q1 2016-0.6%
Q4 2015+4.7%
Q3 2015-1.1%
Q2 2015+0.9%
Q1 2015+2.9%
Q4 2014+2.7%
Q3 2014+0.7%
Q2 2014+1.3%
Q1 2014-0.6%
Q4 2013+1.5%
Q3 2013+0.1%
Q2 2013-1.6%
Q1 2013+3.9%
Q4 2012-0.9%
Q3 2010-1.9%
Q2 2010+2.0%
Q1 2010

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