Hudson Pacific Properties (HPP) Misses Q4 EPS by 6c, Revenues Beat

Hudson Pacific Properties (NYSE: HPP) reported Q4 EPS of ($0.05), $0.06 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $203.84 million versus the consensus estimate of $186.79 million.

• Fourth Quarter Net Loss of $0.05 per Diluted Share
• Fourth Quarter FFO of $0.44 per Diluted Share (Excluding Specified Items)
• Signed over 279,000 square feet of office leases
• Maintained in-service office portfolio at 93.5% leased
• Collected 97% of total rents, including 98% of office and 100% of studio rents
• Grew same-store office cash NOI by 4.2%

Management Comments & Industry Outlook

Victor Coleman, Hudson Pacific Properties' Chairman and CEO, said:

"Our markets are once again reopening as COVID-19 cases decline, and the development and roll out of multiple vaccines, albeit slower than we would all like, are key milestones in getting our tenants back to the office. We saw renewed tenant interest in the fourth quarter, which resulted in our signing nearly 280,000 square feet of office leases—our best quarter for the year in terms of volume. This positive trend is extending into the first few months of 2021. Our tenants continue to pay rent, and in the fourth quarter, we collected 97% of total rents, including 98% of office and 100% of studio rents. Our storefront retail remains most challenged by the pandemic.

"We continue to strategically deploy capital. In the fourth quarter, we acquired a 668,000-square-foot Class A office tower in Seattle through a JV, and opportunistically repurchased additional shares of our stock. Even so, we still have $1.0 billion of liquidity to fund our developments and/or acquisitions, and to otherwise operate our business as needed. We are actively evaluating potential office and studio acquisitions, and we have over 1.0 million square feet of development projects fully entitled and ready to build as market conditions warrant.

"I am also extraordinarily proud that through our Better Blueprint we have strengthened our commitment to our communities during these very challenging times. In December, we launched our Vibrant Cities Arts Grant to benefit artists in Los Angeles impacted by the pandemic. Last week, we announced our five-year, $20 million pledge to address homelessness in our core markets. Now more than ever, we have both a moral and business imperative to give back and work diligently to ensure that our cities continue to thrive post-COVID and beyond."

For earnings history and earnings-related data on Hudson Pacific Properties (HPP) click here.

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