Hudson Pacific Properties (NYSE: HPP) reported Q2 EPS of $0.10, in-line with the analyst estimate of $0.10. Revenue for the quarter came in at $175.17 million versus the consensus estimate of $171.18 million.

“We had a strong second quarter, particularly in terms of leasing and building upon our foundation for long-term growth through prudent capital recycling,” said Victor Coleman, Hudson Pacific Properties’ Chairman and CEO. “Already standout West Coast market fundamentals continued to improve. We executed leases in excess of 800,000 square feet with 23% GAAP and 17% cash rent growth, including the early renewal and expansion of two of our largest tenants, Nutanix and Square, Inc. We have renewed or backfilled, or are in leases, LOIs or proposals on 76% of our 2018 and 48% of our 2019 expirations. We are also excited to report that we have signed a lease with Honey Science Corporation for 100% of our Fourth & Traction redevelopment, and we have very promising activity on the remainder of our priority large-block, lease-up assets.”

“Capital recycling was a highlight of our second quarter and remains at the forefront of our agenda in the third quarter, as we continue to position ourselves to pursue unique growth opportunities. We closed the sale of 9300 Wilshire in Beverly Hills, and purchased properties strategic to the continued expansion of Sunset Las Palmas Studios. We also completed the sale of the remaining Peninsula Office Park buildings in San Mateo. These transactions highlight our excellent execution and success in capitalizing on favorable market conditions to sell non-core assets, the net proceeds of which we can redeploy into higher-yielding, superior quality opportunities.”

2018 Outlook

The Company is revising its full-year 2018 FFO guidance to a range of $1.83 to $1.89 per diluted share, excluding specified items, compared to the prior full-year 2018 FFO guidance range of $1.87 to $1.95 per diluted share, excluding specified items. Specified items for full-year 2018 FFO guidance consist of the transaction-related expenses of $0.1 million and write-off of original issuance costs (i.e., deferred financing costs) of $0.4 million associated with the recast of the Company’s unsecured revolving credit facility and 5- and 7-year term loan facilities, both of which were identified as excluded items in the Company’s first quarter 2018 FFO, together with unrealized gains from changes in fair value on non-real estate investments of $0.9 million. This guidance also includes the impact of the Peninsula Office Park sale, the Honey Science Corporation lease’s deferred commencement at Fourth & Traction, and the early contribution of Westside Pavilion to the Company’s joint venture with Macerich, which collectively contribute to an $0.05 per diluted share decrease in the Company’s full-year 2018 FFO estimate.

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