Wedbush Downgrades Hudson Pacific Properties (HPP) to Neutral

Wedbush analyst Richard Anderson downgraded Hudson Pacific Properties (NYSE: HPP) from Outperform to Neutral with a price target of $7.50 (from $11.00).

The analyst comments "HPP's 2024 FFOguidance of $1.00-$1.10 substantially missed consensus of $1.24 -- a rareoccurrence at this order of magnitude for the REITs. The main factor is thetiming of the media recovery (real estate and service income) as productionmethodically restarts following the strikes. However, office occupancy is alsolikely to remain challenged for most of 2024, and HPP needs to do 840ksf of newspeculative leasing just to maintain flat occupancy growth for the year. Eachpassing quarter will be reminder of double-digit negative same store growth,while releasing the 470ksf Block space (270ksf, HPP share) at 1455 Market St.is likely to be a long process as well. Further out, the 325ksf Uber lease expiresin the same building early next year, which is a large chunk of 2025 expirationstotaling 2msf. There is a lot that has to go right, although our new PT multipleof 11x AFFO is unchanged (reflecting a $0.25 reduction to our 2024 estimate)."

For an analyst ratings summary and ratings history on Hudson Pacific Properties click here. For more ratings news on Hudson Pacific Properties click here.

Shares of Hudson Pacific Properties closed at $7.25 yesterday.

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