NYSE$HPP

Hudson Pacific Properties Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2024.

Hudson Pacific Properties reported a total revenue of $218.0 million and a net loss attributable to common stockholders of $47.0 million, or $0.33 per diluted share, for the second quarter of 2024. They signed 540,000 square feet of office leases. The company is providing a third quarter FFO outlook of $0.08 to $0.12 per diluted share and updating key assumptions related to its full year FFO outlook.

  • Signed 540,000 square feet of office leases.
  • Total revenue was $218.0 million.
  • Net loss attributable to common stockholders was $47.0 million, or $0.33 per diluted share.
  • FFO, excluding specified items, was $24.5 million, or $0.17 per diluted share.

Headline financials

Total Revenue

$218M

Previous: $245M-11.1%
EPS (adj)

$0.17

Previous: $0.24-29.2%
Capital Expenditures

-$98.4M

Previous: -$158M+37.5%
Free Cash Flow

-$146M

Previous: -$189M+22.8%
Net Income

-$47.6M

Previous: -$31.5M-51.1%
Operating Income

-$116M

Previous: -$95.6M-21.4%
Gross Profit

$105M

Previous: $134M-21.7%
Stock-Based Comp

$6.92M

Previous: $6.31M+9.6%

Revenue & EPS history

Hudson Pacific · Revenue · Quarterly

$218M

Q2 2024-11.1%vs Q2 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Hudson Pacific · $231M total across 2 segments · Q3 2023

  • Office revenues
    $204M-4.6%
  • Studio revenues
    $27.9M-40.6%

Forward guidance

Hudson Pacific is providing an FFO outlook for the third quarter of $0.08 to $0.12 per diluted share and updating key assumptions related to its full-year FFO outlook.

Tailwinds

  • IATSE and Teamsters unions ratified new contracts in mid-July and early August, respectively, which paves the way for production to normalize.
  • Office occupancy at the end of the third quarter could be in line with that reported for the second quarter.
  • The Company’s same-store office portfolio continues to perform in line with its previously provided full-year same-store cash NOI growth assumptions.
  • Solid leasing execution will continue as we move through the balance of the year given the second quarter was our highest activity since 2022, and our leasing pipeline remains healthy.
  • Ongoing deleveraging remains a top priority and we have no debt maturities until the end of 2025.

Headwinds

  • Lower studio NOI is expected in the third quarter, as operating conditions are incrementally less favorable than the first half of the year.
  • It will take time to greenlight and ready new productions.
  • Slower than anticipated absorption within its same-store studio portfolio.
  • Office lease expirations in the second and third quarter result in lower average office occupancy and NOI for the third quarter compared to the second quarter.
  • Industry dynamics are very fluid, and as a result, we still lack visibility in regard to timing and direction of our studio operations.

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 Q2 2024

Historical avgQ2 2024

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro