Hudson Pacific (NYSE: HPP) narrows Q1 2026 net loss to $50.9M
Filing Impact
Filing Sentiment
Form Type
10-Q
Hudson Pacific Properties, a REIT focused on office and studio assets in North America and the U.K., reported a Q1 2026 net loss of $50.9 million, improving from a $80.3 million loss a year earlier as prior-year impairments and sale-related items did not recur.
Total revenues were $181.9 million, down from $198.5 million, with office revenues declining while studio revenues held roughly flat. Net loss attributable to common stockholders was $53.1 million, or $(0.82) per diluted share, compared with $(3.70) per share in Q1 2025.
Operating cash flow strengthened to $44.3 million from $30.5 million, while total debt stood at about $3.37 billion and the company remained in compliance with all key leverage and coverage covenants. The consolidated portfolio comprised 52 properties totaling 18.8 million square feet, primarily office and studio space.
Positive
- None.
Negative
- None.
Key Figures
Total revenue: $181.9M
Net loss: $50.9M
Net loss attributable to common stockholders: $53.1M
+5 more
8 metrics
Total revenue
$181.9M
Three months ended March 31, 2026; vs $198.5M in Q1 2025
Net loss
$50.9M
Three months ended March 31, 2026; vs $80.3M loss in Q1 2025
Net loss attributable to common stockholders
$53.1M
Three months ended March 31, 2026
Diluted EPS
$(0.82)
Net loss per diluted share in Q1 2026; vs $(3.70) in Q1 2025
Operating cash flow
$44.3M
Net cash provided by operating activities in Q1 2026; vs $30.5M in Q1 2025
Total assets
$7.23B
Consolidated balance sheet as of March 31, 2026
Total unsecured and secured debt
$3.37B
Gross debt outstanding as of March 31, 2026 (excluding JV partner debt)
Total portfolio size
18.8M sq ft
52 properties (consolidated and unconsolidated) as of March 31, 2026
Key Terms
real estate investment trust, variable interest entity, cash flow hedge, non-real estate investments, +1 more
5 terms
real estate investment trust financial
"Hudson Pacific Properties, Inc. is a real estate investment trust, or REIT"
A real estate investment trust (REIT) is a company that owns and manages income-producing properties—like apartment buildings, shopping centers, offices, or warehouses—and is required to pass most of its rental income to shareholders as dividends. Think of it as a shared property owner: instead of buying a whole building, investors buy a slice of a portfolio that pays regular income and can offer exposure to property values and rental markets without direct management. REITs matter to investors for predictable income, diversification, and liquidity compared with owning physical real estate.
variable interest entity financial
"the Company has determined that its operating partnership and 18 joint ventures met the definition of a VIE"
A variable interest entity (VIE) is a company structure where one party controls another company’s operations and economic outcomes through contracts or special arrangements instead of owning a majority of its voting shares. For investors, VIEs matter because the controlling party’s financial results, debts and risks can appear in the controller’s reports even though ownership looks separate, so understanding VIEs helps assess true exposure, governance limits and transparency—like spotting a puppet controlled by strings rather than direct ownership.
cash flow hedge financial
"Hollywood Media Portfolio CMBS | Swap | Cash flow hedge"
A cash flow hedge is an accounting label for a contract or arrangement used to offset expected future swings in a company’s cash payments or receipts — for example from variable-rate interest, foreign currency sales, or forecasted purchases. It matters to investors because it aims to smooth future cash and earnings volatility: gains or losses on the hedge are held out of current profit and reported separately until the underlying transaction affects results, much like buying insurance to steady future bills.
non-real estate investments financial
"The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value practical expedient"
performance units financial
"operating partnership performance units and performance-based awards"
Performance units are company awards that become valuable only if specified business targets are met; they typically convert into shares or cash when performance goals are achieved. Think of them like a conditional bonus that turns into stock only if the company hits agreed milestones, so they align managers’ incentives with shareholders’ interests and can affect future share count, executive pay expense, and investor returns.
Earnings Snapshot
Revenue: $181.9M
Q1 2026
Revenue
$181.9M
vs $198.5M in Q1 2025
Net loss
$50.9M
vs $80.3M net loss in Q1 2025
Diluted EPS
$(0.82)
vs $(3.70) in Q1 2025
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________
FORM 10-Q
______________________________________
| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended March 31, 2026
or
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from ______ to ______
Commission File Number: 001-34789 (Hudson Pacific Properties, Inc.)
Commission File Number: 333-202799-01 (Hudson Pacific Properties, L.P.)
______________________________________
(Exact name of registrant as specified in its charter)
Hudson Pacific Properties, Inc. | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||
Hudson Pacific Properties, L.P. | (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | ||||||
| (Address of principal executive offices) (Zip Code) | ||
(310 445-5700
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
______________________________________
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||||
| Hudson Pacific Properties, Inc. | ||||||||||||||||||||
| Hudson Pacific Properties, Inc. | ||||||||||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Hudson Pacific Properties, Inc. | Hudson Pacific Properties, L.P. | ||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Hudson Pacific Properties, Inc. | Hudson Pacific Properties, L.P. | ||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Hudson Pacific Properties, Inc.
Accelerated filer ☐ | ||||||||
Non-accelerated filer ☐ | Smaller reporting company | |||||||
Emerging growth company | ||||||||
Hudson Pacific Properties, L.P.
Large accelerated filer ☐ | Accelerated filer ☐ | |||||||
Smaller reporting company | ||||||||
Emerging growth company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Hudson Pacific Properties, Inc. ☐ | Hudson Pacific Properties, L.P. ☐ | ||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Hudson Pacific Properties, Inc. Yes ☐ No | Hudson Pacific Properties, L.P. Yes ☐ No | ||||
The number of shares of common stock of Hudson Pacific Properties, Inc. outstanding at May 1, 2026 was 54,242,024 .
Table of Contents
EXPLANATORY NOTE
This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2026 of Hudson Pacific Properties, Inc., a Maryland corporation, and Hudson Pacific Properties, L.P., a Maryland limited partnership. Unless otherwise indicated or unless the context requires otherwise, all references in this report to “we,” “us,” “our,” or “our Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. In statements regarding qualification as a REIT, such terms refer solely to Hudson Pacific Properties, Inc. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.
Hudson Pacific Properties, Inc. is a real estate investment trust, or REIT, and the sole general partner of our operating partnership. As of March 31, 2026, Hudson Pacific Properties, Inc. owned approximately 96.6% of the ownership interest in our operating partnership (including unvested restricted units). The remaining approximately 3.4% interest was owned by certain of our executive officers and directors, certain of their affiliates and other outside investors and includes unvested operating partnership performance units. As the sole general partner of our operating partnership, Hudson Pacific Properties, Inc. has the full, exclusive and complete responsibility for our operating partnership’s day-to-day management and control.
We believe combining the quarterly reports on Form 10-Q of Hudson Pacific Properties, Inc. and the operating partnership into this single report results in the following benefits:
•enhancing investors’ understanding of our Company and our operating partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
•eliminating duplicative disclosure and providing a more streamlined and readable presentation because a substantial portion of the disclosures apply to both our Company and our operating partnership; and
•creating time and cost efficiencies through the preparation of one combined report instead of two separate reports.
There are a few differences between our Company and our operating partnership, which are reflected in the disclosures in this report. We believe it is important to understand the differences between our Company and our operating partnership in the context of how we operate as an interrelated, consolidated company. Hudson Pacific Properties, Inc. is a REIT, the only material assets of which are the units of partnership interest in our operating partnership. As a result, Hudson Pacific Properties, Inc. does not conduct business itself, other than acting as the sole general partner of our operating partnership, issuing equity from time to time and guaranteeing certain debt of our operating partnership. Hudson Pacific Properties, Inc. itself does not issue any indebtedness but guarantees some of the debt of our operating partnership. Our operating partnership, which is structured as a partnership with no publicly traded equity, holds substantially all of the assets of our Company and conducts substantially all of our business. Except for net proceeds from equity issuances by Hudson Pacific Properties, Inc., which are generally contributed to our operating partnership in exchange for units of partnership interest in our operating partnership, our operating partnership generates the capital required by our Company’s business through its operations, its incurrence of indebtedness or through the issuance of units of partnership interest in our operating partnership.
Non-controlling interest, stockholders’ equity and partners’ capital are the main areas of difference between the consolidated financial statements of our Company and those of our operating partnership. The common units in our operating partnership are accounted for as partners’ capital in our operating partnership’s consolidated financial statements and, to the extent not held by our Company, as a non-controlling interest in our Company’s consolidated financial statements. The differences between stockholders’ equity, partners’ capital and non-controlling interest result from the differences in the equity issued by our Company and our operating partnership.
To help investors understand the significant differences between our Company and our operating partnership, this report presents the consolidated financial statements separately for our Company and our operating partnership. All other sections of this report, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Quantitative and Qualitative Disclosures About Market Risk,” are presented together for our Company and our operating partnership.
In order to establish that the Chief Executive Officer and the Chief Financial Officer of each entity have made the requisite certifications and that our Company and our operating partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, or the Exchange Act and 18 U.S.C. §1350, this report also includes separate Part I, Item 4 “Controls and Procedures” sections and separate Exhibit 31 and 32 certifications for each of Hudson Pacific Properties, Inc. and our operating partnership.
3
HUDSON PACIFIC PROPERTIES, INC. AND HUDSON PACIFIC PROPERTIES, L.P.
TABLE OF CONTENTS
| Page | ||||||||
PART I—FINANCIAL INFORMATION | ||||||||
| ITEM 1. | Financial Statements of Hudson Pacific Properties, Inc. | |||||||
Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025 | 5 | |||||||
Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2026 and 2025 | 6 | |||||||
Consolidated Statements of Comprehensive Loss (unaudited) for the three months ended March 31, 2026 and 2025 | 7 | |||||||
Consolidated Statements of Equity (unaudited) for the three months ended March 31, 2026 and 2025 | 8 | |||||||
Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2026 and 2025 | 9 | |||||||
| ITEM 1. | Financial Statements of Hudson Pacific Properties, L.P. | |||||||
Consolidated Balance Sheets as of March 31, 2026 (unaudited) and December 31, 2025 | 10 | |||||||
Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2026 and 2025 | 11 | |||||||
Consolidated Statements of Comprehensive Loss (unaudited) for the three months ended March 31, 2026 and 2025 | 12 | |||||||
Consolidated Statements of Capital (unaudited) for the three months ended March 31, 2026 and 2025 | 13 | |||||||
Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2026 and 2025 | 14 | |||||||
Notes to Unaudited Consolidated Financial Statements | 15 | |||||||
| ITEM 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 36 | ||||||
| ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk | 53 | ||||||
| ITEM 4. | Controls and Procedures | 53 | ||||||
PART II—OTHER INFORMATION | ||||||||
| ITEM 1. | Legal Proceedings | 55 | ||||||
| ITEM 1A. | Risk Factors | 55 | ||||||
| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 55 | ||||||
| ITEM 3. | Defaults Upon Senior Securities | 55 | ||||||
| ITEM 4. | Mine Safety Disclosures | 55 | ||||||
| ITEM 5. | Other Information | 55 | ||||||
| ITEM 6. | Exhibits | 56 | ||||||
SIGNATURES | 57 | |||||||
4
Table of Contents
PART I—FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS OF HUDSON PACIFIC PROPERTIES, INC.
HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, 2026 (unaudited) | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Investment in real estate, at cost | $ | $ | |||||||||
| Accumulated depreciation and amortization | ( | ( | |||||||||
| Investment in real estate, net | |||||||||||
| Non-real estate property, plant and equipment, net | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash | |||||||||||
| Accounts receivable, net | |||||||||||
| Straight-line rent receivables, net | |||||||||||
| Deferred leasing costs and intangible assets, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Prepaid expenses and other assets, net | |||||||||||
| Investment in unconsolidated real estate entities | |||||||||||
| Goodwill | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities | |||||||||||
| Unsecured and secured debt, net | $ | $ | |||||||||
| Joint venture partner debt | |||||||||||
| Accounts payable, accrued liabilities and other | |||||||||||
| Operating lease liabilities | |||||||||||
| Intangible liabilities, net | |||||||||||
| Security deposits, prepaid rent and other | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 20) | |||||||||||
| Redeemable preferred units of the operating partnership | |||||||||||
| Redeemable non-controlling interest in consolidated real estate entities | |||||||||||
| Equity | |||||||||||
| Hudson Pacific Properties, Inc. stockholders' equity: | |||||||||||
Common stock, $ | |||||||||||
| Additional paid-in capital | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total Hudson Pacific Properties, Inc. stockholders’ equity | |||||||||||
| Non-controlling interest—members in consolidated real estate entities | |||||||||||
| Non-controlling interest—units in the operating partnership | |||||||||||
| Total equity | |||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
5
Table of Contents
HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except share data)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Office | |||||||||||||||||||||||
| Rental revenues | $ | $ | |||||||||||||||||||||
| Service and other revenues | |||||||||||||||||||||||
| Total office revenues | |||||||||||||||||||||||
| Studio | |||||||||||||||||||||||
| Rental revenues | |||||||||||||||||||||||
| Service and other revenues | |||||||||||||||||||||||
| Total studio revenues | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Office operating expenses | |||||||||||||||||||||||
| Studio operating expenses | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| OTHER (EXPENSES) INCOME | |||||||||||||||||||||||
| Loss from unconsolidated real estate entities | ( | ( | |||||||||||||||||||||
| Fee income | |||||||||||||||||||||||
| Interest expense | ( | ( | |||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Management services reimbursement income—unconsolidated real estate entities | |||||||||||||||||||||||
| Management services expense—unconsolidated real estate entities | ( | ( | |||||||||||||||||||||
| Transaction-related expenses | ( | ||||||||||||||||||||||
| Unrealized loss on non-real estate investments | ( | ( | |||||||||||||||||||||
| Gain on sale of real estate, net | |||||||||||||||||||||||
| Impairment loss | ( | ||||||||||||||||||||||
| Loss on extinguishment of debt | ( | ||||||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Total other expenses | ( | ( | |||||||||||||||||||||
| Loss before income tax provision | ( | ( | |||||||||||||||||||||
| Income tax provision | ( | ( | |||||||||||||||||||||
| Net loss | ( | ( | |||||||||||||||||||||
| Net income attributable to Series A preferred units | ( | ( | |||||||||||||||||||||
| Net income attributable to Series C preferred shares | ( | ( | |||||||||||||||||||||
| Net loss attributable to non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Net loss attributable to common units in the operating partnership | |||||||||||||||||||||||
| NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | ( | $ | ( | |||||||||||||||||||
| BASIC AND DILUTED PER SHARE AMOUNTS | |||||||||||||||||||||||
| Net loss attributable to common stockholders—basic | $ | ( | $ | ( | |||||||||||||||||||
| Net loss attributable to common stockholders—diluted | $ | ( | $ | ( | |||||||||||||||||||
| Weighted average shares of common stock outstanding—basic | |||||||||||||||||||||||
| Weighted average shares of common stock outstanding—diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents
HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited, in thousands)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net loss | $ | ( | $ | ( | |||||||||||||||||||
| Currency translation adjustments | ( | ||||||||||||||||||||||
| Net unrealized gains (losses) on derivative instruments: | |||||||||||||||||||||||
| Unrealized gains (losses) | ( | ||||||||||||||||||||||
| Reclassification adjustment for realized gains | ( | ( | |||||||||||||||||||||
| Total net unrealized gains (losses) on derivative instruments | ( | ||||||||||||||||||||||
| Total other comprehensive (loss) income | ( | ||||||||||||||||||||||
| Comprehensive loss | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to Series A preferred units | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to Series C preferred stock | ( | ( | |||||||||||||||||||||
| Comprehensive loss attributable to non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Comprehensive loss attributable to non-controlling interest in the operating partnership | |||||||||||||||||||||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | ( | $ | ( | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF EQUITY
(unaudited, in thousands, except share data)
| Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling Interest | |||||||||||||||||||||||||||||||
| Series C Cumulative Redeemable Preferred Stock | Shares of Common Stock | Stock Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Units in the Operating Partnership | Members in Consolidated Real Estate Entities | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2025 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Distributions | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||
| Transaction costs | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||
| Issuance of unrestricted stock | — | — | — | — | — | |||||||||||||||||||||||||||
| Shares withheld to satisfy tax withholding obligations | — | ( | ( | — | — | — | — | ( | ||||||||||||||||||||||||
| Declared dividend | ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||
| Amortization of share/unit-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Net income (loss) | — | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||
| Other comprehensive (loss) income | — | — | — | — | — | ( | ( | ( | ||||||||||||||||||||||||
Balance, March 31, 2026 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
| Hudson Pacific Properties, Inc. Stockholders’ Equity | Non-controlling Interest | |||||||||||||||||||||||||||||||
| Series C Cumulative Redeemable Preferred Stock | Shares of Common Stock | Stock Amount | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive (Loss) Income | Units in the Operating Partnership | Members in Consolidated Real Estate Entities | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2024 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
| Contributions | — | — | — | — | — | — | — | |||||||||||||||||||||||||
| Distributions | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||
| Issuance of unrestricted stock | — | ( | — | — | — | — | ||||||||||||||||||||||||||
| Shares withheld to satisfy tax withholding obligations | — | ( | ( | ( | — | — | — | — | ( | |||||||||||||||||||||||
| Declared dividend | ( | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||
| Amortization of share/unit-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Net income (loss) | — | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | |||||||||||||||||||||||||||
Balance, March 31, 2025 | $ | $ | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
HUDSON PACIFIC PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Non-cash interest expense | |||||||||||
| Amortization of share/unit-based compensation | |||||||||||
| Straight-line rents | ( | ( | |||||||||
| Straight-line rent expense | |||||||||||
| Amortization of above- and below-market leases, net | ( | ( | |||||||||
| Amortization of above- and below-market ground leases, net | |||||||||||
| Amortization of lease incentive costs | |||||||||||
| Loss from unconsolidated real estate entities | |||||||||||
| Unrealized loss on non-real estate investments | |||||||||||
| Loss on sale of non-real estate property, plant and equipment | |||||||||||
| Loss on extinguishment of debt | |||||||||||
| Gain on sale of real estate, net | ( | ||||||||||
| Impairment loss | |||||||||||
| Deferred tax benefit | ( | ||||||||||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | |||||||||||
| Deferred leasing costs and lease intangibles | ( | ( | |||||||||
| Prepaid expenses and other assets | |||||||||||
| Accounts payable, accrued liabilities and other | |||||||||||
| Security deposits, prepaid rent and other | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Proceeds from sales of real estate | |||||||||||
| Additions to investment in real estate | ( | ( | |||||||||
| Contributions to unconsolidated real estate entities | ( | ( | |||||||||
| Distributions from unconsolidated real estate entities | |||||||||||
| Additions to non-real estate property, plant and equipment | ( | ( | |||||||||
| Contributions to non-real estate investments | ( | ( | |||||||||
| Net cash (used in) provided by investing activities | ( | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from unsecured and secured debt | |||||||||||
| Payments of unsecured and secured debt | ( | ( | |||||||||
| Payments of loan costs | ( | ||||||||||
| Transaction costs | ( | ||||||||||
| Redemption of series A preferred units | ( | ||||||||||
| Dividends paid to common stock and unitholders | ( | ( | |||||||||
| Dividends paid to preferred stock and unitholders | ( | ( | |||||||||
| Contributions from non-controlling members in consolidated real estate entities | |||||||||||
| Distributions to non-controlling members in consolidated real estate entities | ( | ( | |||||||||
| Payments to satisfy tax withholding obligations | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Net increase in cash and cash equivalents and restricted cash | |||||||||||
| Cash and cash equivalents and restricted cash—beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
ITEM 1. FINANCIAL STATEMENTS OF HUDSON PACIFIC PROPERTIES, L.P.
HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED BALANCE SHEETS
(in thousands, except unit data)
March 31, 2026 (unaudited) | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Investment in real estate, at cost | $ | $ | |||||||||
| Accumulated depreciation and amortization | ( | ( | |||||||||
| Investment in real estate, net | |||||||||||
| Non-real estate property, plant and equipment, net | |||||||||||
| Cash and cash equivalents | |||||||||||
| Restricted cash | |||||||||||
| Accounts receivable, net | |||||||||||
| Straight-line rent receivables, net | |||||||||||
| Deferred leasing costs and intangible assets, net | |||||||||||
| Operating lease right-of-use assets | |||||||||||
| Prepaid expenses and other assets, net | |||||||||||
| Investment in unconsolidated real estate entities | |||||||||||
| Goodwill | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES AND CAPITAL | |||||||||||
| Liabilities | |||||||||||
| Unsecured and secured debt, net | $ | $ | |||||||||
| Joint venture partner debt | |||||||||||
| Accounts payable, accrued liabilities and other | |||||||||||
| Operating lease liabilities | |||||||||||
| Intangible liabilities, net | |||||||||||
| Security deposits, prepaid rent and other | |||||||||||
| Total liabilities | |||||||||||
| Commitments and contingencies (Note 20) | |||||||||||
| Redeemable preferred units of the operating partnership | |||||||||||
| Redeemable non-controlling interest in consolidated real estate entities | |||||||||||
| Capital | |||||||||||
| Hudson Pacific Properties, L.P. partners’ capital | |||||||||||
Common units, | |||||||||||
| Accumulated other comprehensive loss | ( | ( | |||||||||
| Total Hudson Pacific Properties, L.P. partners’ capital | |||||||||||
| Non-controlling interest—members in consolidated real estate entities | |||||||||||
| Total capital | |||||||||||
| TOTAL LIABILITIES AND CAPITAL | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except unit data)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Office | |||||||||||||||||||||||
| Rental revenues | $ | $ | |||||||||||||||||||||
| Service and other revenues | |||||||||||||||||||||||
| Total office revenues | |||||||||||||||||||||||
| Studio | |||||||||||||||||||||||
| Rental revenues | |||||||||||||||||||||||
| Service and other revenues | |||||||||||||||||||||||
| Total studio revenues | |||||||||||||||||||||||
| Total revenues | |||||||||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Office operating expenses | |||||||||||||||||||||||
| Studio operating expenses | |||||||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Total operating expenses | |||||||||||||||||||||||
| OTHER (EXPENSES) INCOME | |||||||||||||||||||||||
| Loss from unconsolidated real estate entities | ( | ( | |||||||||||||||||||||
| Fee income | |||||||||||||||||||||||
| Interest expense | ( | ( | |||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Management services reimbursement income—unconsolidated real estate entities | |||||||||||||||||||||||
| Management services expense—unconsolidated real estate entities | ( | ( | |||||||||||||||||||||
| Transaction-related expenses | ( | ||||||||||||||||||||||
| Unrealized loss on non-real estate investments | ( | ( | |||||||||||||||||||||
| Gain on sale of real estate, net | |||||||||||||||||||||||
| Impairment loss | ( | ||||||||||||||||||||||
| Loss on extinguishment of debt | ( | ||||||||||||||||||||||
| Other income | |||||||||||||||||||||||
| Total other expenses | ( | ( | |||||||||||||||||||||
| Loss before income tax provision | ( | ( | |||||||||||||||||||||
| Income tax provision | ( | ( | |||||||||||||||||||||
| Net loss | ( | ( | |||||||||||||||||||||
| Net loss attributable to non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Net loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Net loss attributable to Hudson Pacific Properties, L.P. | ( | ( | |||||||||||||||||||||
| Net income attributable to Series A preferred units | ( | ( | |||||||||||||||||||||
| Net income attributable to Series C preferred units | ( | ( | |||||||||||||||||||||
| NET LOSS AVAILABLE TO COMMON UNITHOLDERS | $ | ( | $ | ( | |||||||||||||||||||
| BASIC AND DILUTED PER UNIT AMOUNTS | |||||||||||||||||||||||
| Net loss attributable to common unitholders—basic | $ | ( | $ | ( | |||||||||||||||||||
| Net loss attributable to common unitholders—diluted | $ | ( | $ | ( | |||||||||||||||||||
| Weighted average shares of common units outstanding—basic | |||||||||||||||||||||||
| Weighted average shares of common units outstanding—diluted | |||||||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
11
Table of Contents
HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited, in thousands)
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net loss | $ | ( | $ | ( | |||||||||||||||||||
| Currency translation adjustments | ( | ||||||||||||||||||||||
| Net unrealized gains (losses) on derivative instruments: | |||||||||||||||||||||||
| Unrealized gains (losses) | ( | ||||||||||||||||||||||
| Reclassification adjustment for realized gains | ( | ( | |||||||||||||||||||||
| Total net unrealized gains (losses) on derivative instruments | ( | ||||||||||||||||||||||
| Total other comprehensive (loss) income | ( | ||||||||||||||||||||||
| Comprehensive loss | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to Series A preferred units | ( | ( | |||||||||||||||||||||
| Comprehensive income attributable to Series C preferred units | ( | ( | |||||||||||||||||||||
| Comprehensive loss attributable to non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| Comprehensive loss attributable to redeemable non-controlling interest in consolidated real estate entities | |||||||||||||||||||||||
| COMPREHENSIVE LOSS ATTRIBUTABLE TO PARTNERS’ CAPITAL | $ | ( | $ | ( | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
12
Table of Contents
HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CAPITAL
For the three months ended March 31, 2026
(unaudited, in thousands, except share data)
| Hudson Pacific Properties, L.P. Partners’ Capital | Non-controlling Interest—Members in Consolidated Real Estate Entities | |||||||||||||||||||||||||
| Preferred Units | Number of Common Units | Common Units | Accumulated Other Comprehensive Loss | Total Partners’ Capital | Total Capital | |||||||||||||||||||||
Balance, December 31, 2025 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
| Contributions | — | — | — | — | — | |||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | ( | |||||||||||||||||||
| Transaction costs | — | — | ( | — | ( | — | ( | |||||||||||||||||||
| Issuance of common units | — | — | — | — | — | — | ||||||||||||||||||||
| Units withheld to satisfy tax withholding obligations | — | ( | ( | — | ( | — | ( | |||||||||||||||||||
| Declared distributions | ( | — | ( | — | ( | — | ( | |||||||||||||||||||
| Amortization of unit-based compensation | — | — | — | — | ||||||||||||||||||||||
| Net income (loss) | — | ( | — | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive (loss) income | — | — | — | ( | ( | ( | ||||||||||||||||||||
Balance, March 31, 2026 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
| Hudson Pacific Properties, L.P. Partners’ Capital | Non-controlling Interest—Members in Consolidated Real Estate Entities | |||||||||||||||||||||||||
| Preferred Units | Number of Common Units | Common Units | Accumulated Other Comprehensive (Loss) Income | Total Partners’ Capital | Total Capital | |||||||||||||||||||||
Balance, December 31, 2024 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
| Contributions | — | — | — | — | — | |||||||||||||||||||||
| Distributions | — | — | — | — | — | ( | ( | |||||||||||||||||||
| Issuance of common units | — | — | — | — | — | — | ||||||||||||||||||||
| Units withheld to satisfy tax withholding obligations | — | ( | ( | — | ( | — | ( | |||||||||||||||||||
| Declared distributions | ( | — | ( | — | ( | — | ( | |||||||||||||||||||
| Amortization of unit-based compensation | — | — | — | — | ||||||||||||||||||||||
| Net income (loss) | — | ( | — | ( | ( | ( | ||||||||||||||||||||
| Other comprehensive income | — | — | — | |||||||||||||||||||||||
Balance, March 31, 2025 | $ | $ | $ | ( | $ | $ | $ | |||||||||||||||||||
The accompanying notes are an integral part of these consolidated financial statements.
13
Table of Contents
HUDSON PACIFIC PROPERTIES, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in thousands)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | |||||||||||
| Non-cash interest expense | |||||||||||
| Amortization of share/unit-based compensation | |||||||||||
| Straight-line rents | ( | ( | |||||||||
| Straight-line rent expenses | |||||||||||
| Amortization of above- and below-market leases, net | ( | ( | |||||||||
| Amortization of above- and below-market ground leases, net | |||||||||||
| Amortization of lease incentive costs | |||||||||||
| Loss from unconsolidated real estate entities | |||||||||||
| Unrealized loss on non-real estate investments | |||||||||||
| Loss on sale of non-real estate property, plant and equipment | |||||||||||
| Loss on extinguishment of debt | |||||||||||
| Gain on sale of real estate, net | ( | ||||||||||
| Impairment loss | |||||||||||
| Deferred tax benefit | ( | ||||||||||
| Change in operating assets and liabilities: | |||||||||||
| Accounts receivable | |||||||||||
| Deferred leasing costs and lease intangibles | ( | ( | |||||||||
| Prepaid expenses and other assets | |||||||||||
| Accounts payable, accrued liabilities and other | |||||||||||
| Security deposits, prepaid rent and other | ( | ||||||||||
| Net cash provided by operating activities | |||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
| Proceeds from sales of real estate | |||||||||||
| Additions to investment in real estate | ( | ( | |||||||||
| Contributions to unconsolidated real estate entities | ( | ( | |||||||||
| Distributions from unconsolidated real estate entities | |||||||||||
| Additions to non-real estate property, plant and equipment | ( | ( | |||||||||
| Contributions to non-real estate investments | ( | ( | |||||||||
| Net cash (used in) provided by investing activities | ( | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
| Proceeds from unsecured and secured debt | |||||||||||
| Payments of unsecured and secured debt | ( | ( | |||||||||
| Payments of loan costs | ( | ||||||||||
| Transaction costs | ( | ||||||||||
| Redemption of series A preferred units | ( | ||||||||||
| Distributions paid to common unitholders | ( | ( | |||||||||
| Distributions paid to preferred unitholders | ( | ( | |||||||||
| Contributions from non-controlling members in consolidated real estate entities | |||||||||||
| Distributions to non-controlling members in consolidated real estate entities | ( | ( | |||||||||
| Payments to satisfy tax withholding obligations | ( | ( | |||||||||
| Net cash used in financing activities | ( | ( | |||||||||
| Net increase in cash and cash equivalents and restricted cash | |||||||||||
| Cash and cash equivalents and restricted cash—beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—END OF PERIOD | $ | $ | |||||||||
The accompanying notes are an integral part of these consolidated financial statements.
14
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
1. Organization
Hudson Pacific Properties, Inc. is a Maryland corporation formed on November 9, 2009 as a fully integrated, self-administered and self-managed real estate investment trust (“REIT”). Through its controlling interest in the operating partnership and its subsidiaries, Hudson Pacific Properties, Inc. owns, manages, leases, acquires and develops real estate, consisting primarily of office and studio properties. Unless otherwise indicated or unless the context requires otherwise, all references in these financial statements to “the Company” refer to Hudson Pacific Properties, Inc. together with its consolidated subsidiaries, including Hudson Pacific Properties, L.P. Unless otherwise indicated or unless the context requires otherwise, all references to “our operating partnership” or “the operating partnership” refer to Hudson Pacific Properties, L.P. together with its consolidated subsidiaries.
The Company’s portfolio consists of properties primarily located throughout the United States, Western Canada and Greater London, United Kingdom. The following table summarizes the Company’s portfolio as of March 31, 2026:
| Segments | Number of Properties | Square Feet (unaudited) | ||||||||||||
| Consolidated portfolio | ||||||||||||||
| Office | ||||||||||||||
| Studio | ||||||||||||||
| Future development | ||||||||||||||
| Total consolidated portfolio | ||||||||||||||
Unconsolidated portfolio(1) | ||||||||||||||
Office(2) | ||||||||||||||
Studio(3) | ||||||||||||||
Future development(4) | ||||||||||||||
| Total unconsolidated portfolio | ||||||||||||||
| TOTAL | ||||||||||||||
__________________
1.The Company owns 20 % of the unconsolidated joint venture entity that owns the Bentall Centre property, 50 % of the unconsolidated joint venture entity that owns Sunset Glenoaks Studios, 35 % of the unconsolidated joint venture entity that owns Sunset Waltham Cross Studios and approximately 26 % of the unconsolidated joint venture entity that owns Sunset Pier 94 Studios. The square footage shown above represents 100% of the properties.
2.Includes Bentall Centre.
3.Includes Sunset Pier 94 Studios and Sunset Glenoaks Studios.
4.Includes land for the Burrard Exchange and Sunset Waltham Cross Studios.
2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of the Company and the operating partnership are prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) applicable to interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and footnote disclosures required for annual financial statements have been condensed or excluded pursuant to the Securities and Exchange Commission (“SEC”) rules and regulations. Accordingly, the interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying interim financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented.
The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in the 2025 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. and the notes thereto.
Reverse Stock Split and Partnership Agreement Amendment
On December 1, 2025, the Company effected a one-for-seven reverse stock split of its common stock (the "Reverse Stock Split"). Immediately following the Reverse Stock Split, the Company amended its charter to decrease the par value of the Company’s common stock from $0.07 per share back to $0.01 per share and decrease the number of authorized shares from 740,800,000 shares (consisting of 722,400,000 shares of common stock and 18,400,000 shares of preferred stock) to 121,600,000
15
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
shares (consisting of 103,200,000 shares of common stock and 18,400,000 shares of preferred stock). The Company’s common stock began trading on the NYSE on a split-adjusted basis at market open on December 2, 2025.
On December 1, 2025, the Company, as general partner of Hudson Pacific Properties, L.P., executed the Sixth Amended and Restated Agreement of Limited Partnership of Hudson Pacific Properties, L.P. to give effect to a one-for-seven reverse unit split (the “Reverse Unit Split”) of the common units, LTIP units and performance units of the Operating Partnership, which corresponds to the Reverse Stock Split described above.
All common share, common unit, LTIP unit, performance unit, per-share and per-unit amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been retroactively restated to reflect the effect of the Reverse Stock Split and Reverse Unit Split.
Principles of Consolidation
The unaudited interim consolidated financial statements of the Company include the accounts of the Company, the operating partnership and all wholly-owned and controlled subsidiaries. The consolidated financial statements of the operating partnership include the accounts of the operating partnership and all wholly-owned and controlled subsidiaries. All intercompany balances and transactions have been eliminated in the consolidated financial statements.
As of March 31, 2026, the Company has determined that its operating partnership and 18 joint ventures met the definition of a VIE. 10 of these joint ventures are consolidated and eight are unconsolidated.
Consolidated Joint Ventures
As of March 31, 2026, the operating partnership has determined that 10 of its joint ventures met the definition of a VIE and are consolidated:
| Entity | Property | Ownership Interest | ||||||
| Hudson One Ferry REIT, L.P. | Ferry Building | % | ||||||
| Sunset Bronson Entertainment Properties, LLC | Sunset Bronson Studios, ICON, CUE | % | ||||||
| Sunset Gower Entertainment Properties, LLC | Sunset Gower Studios | % | ||||||
| Sunset 1440 North Gower Street, LLC | Sunset Gower Studios | % | ||||||
| Sunset Las Palmas Entertainment Properties, LLC | Sunset Las Palmas Studios, Harlow | % | ||||||
| Sunset Services Holdings, LLC | None(1) | % | ||||||
| Sunset Studios Holdings, LLC | EPIC | % | ||||||
| Hudson Media and Entertainment Management, LLC | None(2) | % | ||||||
| Hudson 6040 Sunset, LLC | 6040 Sunset | % | ||||||
| Hudson 1918 Eighth, L.P. | 1918 Eighth | % | ||||||
__________________
1.Sunset Services Holdings, LLC is the taxable REIT subsidiary (“TRS”) which wholly owns Services Holdings, LLC, which owns 100 % interests in Sunset Bronson Services, LLC, Sunset Gower Services, LLC and Sunset Las Palmas Services, LLC, which are the TRS subsidiaries related to Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios, respectively.
2.Hudson Media and Entertainment Management, LLC manages the following properties: Sunset Gower Studios, Sunset Bronson Studios, Sunset Las Palmas Studios, 6040 Sunset, ICON, CUE, EPIC and Harlow (collectively, “Hollywood Media Portfolio”).
As of March 31, 2026 and December 31, 2025, the Company has determined that its operating partnership met the definition of a VIE and is consolidated.
Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE. The assets and credit of certain VIEs can only be used to satisfy those VIEs’ own contractual obligations, and the VIEs’ creditors have no recourse to the general credit of the Company.
Unconsolidated Joint Ventures
As of March 31, 2026, the Company has determined it is not the primary beneficiary of eight of its joint ventures that are VIEs. Due to its significant influence over the unconsolidated entities, the Company accounts for them using the equity method of accounting. Under the equity method, the Company initially records the investment at cost and subsequently adjusts for equity in earnings or losses and cash contributions and distributions. Refer to Note 5 for further details regarding our investments in unconsolidated joint ventures.
16
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
In the third quarter of 2025, a cash sweep for Sunset Glenoaks Studios commenced in accordance with the terms of the agreement for the loan secured by the property. As a result, the Company updated its VIE assessment of Sun Valley Peoria, LLC, the owner of Sunset Glenoaks Studios, and Sun Valley Services, LLC, the related TRS, and concluded that it is no longer the VIEs’ primary beneficiary as it does not have the power to direct the activities of the VIEs that most significantly impact the VIEs’ economic performance. Therefore, the VIEs are no longer consolidated and are now accounted for using the equity method of accounting as the Company determined that it continues to have significant influence over the entities.
Revenue from Contracts with Customers
The following table summarizes the Company’s revenue streams that are accounted for under ASC 606 for the three months ended March 31, 2026 and 2025:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Ancillary revenues | $ | $ | |||||||||||||||||||||
| Other revenues | $ | $ | |||||||||||||||||||||
| Studio-related tenant recoveries | $ | $ | |||||||||||||||||||||
| Management fee income | $ | $ | |||||||||||||||||||||
| Management services reimbursement income | $ | $ | |||||||||||||||||||||
The following table summarizes the Company’s receivables that are accounted for under ASC 606 as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Ancillary revenues | $ | $ | |||||||||
| Other revenues | $ | $ | |||||||||
| Studio-related tenant recoveries | $ | $ | |||||||||
Goodwill
As of March 31, 2026 and December 31, 2025, the carrying value of goodwill was $8.8
Recently Issued Accounting Pronouncements
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The amendments will require public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. The amendments are effective for the Company’s annual reporting periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, with early adoption permitted, and should be applied either prospectively or retrospectively. The Company is currently evaluating this guidance and the impact it may have on the Company’s consolidated financial statements.
3. Investment in Real Estate
The following table summarizes the Company’s investment in real estate, at cost as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Land | $ | $ | |||||||||
| Building and improvements | |||||||||||
| Tenant improvements | |||||||||||
| Furniture and fixtures | |||||||||||
| Property under development | |||||||||||
| INVESTMENT IN REAL ESTATE, AT COST | $ | $ | |||||||||
Acquisitions of Real Estate
The Company had no acquisitions of real estate during the three months ended March 31, 2026.
17
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Dispositions of Real Estate
The Company had no dispositions of real estate during the three months ended March 31, 2026.
The following table summarizes information on dispositions completed during the three months ended March 31, 2025. These properties were considered non-strategic to the Company’s portfolio:
| Property | Segment | Date of Disposition | Square Feet (unaudited) | Sales Price(1) (in millions) | (Loss) Gain on Sale(2) (in millions) | |||||||||||||||||||||||||||
| Maxwell | Office | 1/22/2025 | $ | $ | ( | |||||||||||||||||||||||||||
| Foothill Research Center | Office | 3/4/2025 | $ | $ | ||||||||||||||||||||||||||||
__________________
1.Represents gross sales price before certain credits, prorations and closing costs.
2.Included within gain on sale of real estate, net on the Consolidated Statements of Operations.
Impairment of Long-Lived Assets
The Company had no impairments of real estate during the three months ended March 31, 2026.
During the three months ended March 31, 2025, the Company recorded an impairment charge of $18.4 million related to the real estate assets of its 625 Second office property. The impairment charge reflected a shortened expected holding period for the property and a reduction in the carrying value of the property to the estimated fair value based on the contractual sales price, which is considered a Level 2 measurement. The impairment charge is recorded within impairment loss on the Consolidated Statements of Operations.
4. Non-Real Estate Property, Plant and Equipment, net
The following table summarizes the Company’s non-real estate property, plant and equipment, net as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Trailers | $ | $ | |||||||||
| Production equipment | |||||||||||
| Trucks and other vehicles | |||||||||||
| Leasehold improvements | |||||||||||
| Furniture, fixtures and equipment | |||||||||||
| Other equipment | |||||||||||
| Non-real estate property, plant and equipment, at cost | |||||||||||
| Accumulated depreciation | ( | ( | |||||||||
| NON-REAL ESTATE PROPERTY, PLANT AND EQUIPMENT, NET | $ | $ | |||||||||
The Company did not recognize any impairment charges for non-real estate property, plant and equipment during the three months ended March 31, 2026 and 2025.
5. Investment in Unconsolidated Real Estate Entities
The following table summarizes the Company’s investments in unconsolidated joint ventures:
| Property | Property Type | Submarket | Ownership Interest | Functional Currency | ||||||||||||||||
Sunset Waltham Cross Studios | Future Development | Broxbourne, United Kingdom | Pound sterling | (1) | ||||||||||||||||
| Bentall Centre | Operating Property | Downtown Vancouver | Canadian dollar | (2)(3) | ||||||||||||||||
| Sunset Pier 94 Studios | Operating Property | Manhattan | U.S. dollar | (4) | ||||||||||||||||
| Sunset Glenoaks Studios | Operating Property | Sun Valley | U.S. dollar | (2)(5) | ||||||||||||||||
__________________
1.The Company owns 35 % of the ownership interests in each of the joint venture entities that own the Sunset Waltham Cross Studios development and the joint venture entities formed to serve as the general partner and management services company for the property-owning joint venture entity.
2.The Company serves as the operating member of this joint venture.
18
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
3.The Company has provided a recourse carve-out guarantee on the joint venture’s outstanding indebtedness in the amount of $94.8 million. The likelihood of loss relating to the guarantee is remote as of March 31, 2026.
4.The Company owns 51 % of the ownership interests in an upper-tier joint venture entity that owns 50.1 % of the ownership interests in the lower-tier joint venture entity that owns the Sunset Pier 94 Studios development. The Company’s resulting economic interest in the development is 25.6 %. The Company has provided various guarantees for the lower-tier joint venture’s construction loan, including a recourse carve-out guarantee in the amount of $39.8 million, a completion guarantee and a guarantee of interest and carry. The likelihood of loss relating to the completion guarantee is remote as of March 31, 2026.
5.The Company owns 50 % of the ownership interests in the joint venture entity that owns Sunset Glenoaks Studios and the related TRS. The Company has provided a recourse carve-out guarantee on the joint venture’s outstanding indebtedness in the amount of $52.1 million. The likelihood of loss relating to the guarantee is remote as of March 31, 2026.
The Company’s maximum exposure related to its unconsolidated joint ventures is limited to its investment and the guarantees provided in relation to the joint ventures’ indebtedness. The Company’s investments in foreign real estate entities are subject to foreign currency fluctuation risk. Such investments are translated into U.S. dollars at the exchange rate in effect as of the financial statement date. The Company’s share of the gain or loss from foreign unconsolidated real estate entities is translated using the monthly-average exchange rate for the periods presented. Gains or losses resulting from the translation are classified in accumulated other comprehensive loss as a separate component of total equity and are excluded from net loss.
The Company held ownership interests in other immaterial unconsolidated joint ventures in the total of $0.4 million and $0.1 million as of March 31, 2026 and December 31, 2025, respectively.
The table below presents the combined and condensed balance sheets for the Company’s unconsolidated joint ventures:
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Investment in real estate, net | $ | $ | |||||||||
| Other assets | |||||||||||
| TOTAL ASSETS | $ | $ | |||||||||
| LIABILITIES | |||||||||||
| Secured debt, net | $ | $ | |||||||||
| Other liabilities | |||||||||||
| TOTAL LIABILITIES | |||||||||||
Company’s capital(1) | |||||||||||
| Partners’ capital | |||||||||||
| TOTAL CAPITAL | |||||||||||
| TOTAL LIABILITIES AND CAPITAL | $ | $ | |||||||||
__________________
1.To the extent the Company’s cost basis is different from the basis reflected at the joint venture level, the basis is amortized over the life of the related asset and is included in the loss from unconsolidated real estate entities line item on the Consolidated Statements of Operations.
The table below presents the combined and condensed statements of operations for the Company’s unconsolidated joint ventures:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025(1) | ||||||||||||||||||||||
| TOTAL REVENUES | $ | $ | |||||||||||||||||||||
| TOTAL EXPENSES | |||||||||||||||||||||||
| NET LOSS | $ | ( | $ | ( | |||||||||||||||||||
__________________
1.The results of Sunset Glenoaks Studios are excluded for the three months ended March 31, 2025, as the entity was accounted for as a consolidated joint venture during that period.
19
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
6. Deferred Leasing Costs and Intangible Assets, net and Intangible Liabilities, net
The following summarizes the Company’s deferred leasing costs and intangibles as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Deferred leasing costs and in-place lease intangibles | $ | $ | |||||||||
| Accumulated amortization | ( | ( | |||||||||
| Deferred leasing costs and in-place lease intangibles, net | |||||||||||
| Lease incentives | |||||||||||
| Accumulated amortization | ( | ( | |||||||||
| Lease incentives, net | |||||||||||
| Below-market ground leases | |||||||||||
| Accumulated amortization | ( | ( | |||||||||
| Below-market ground leases, net | |||||||||||
| Parking easement | |||||||||||
| DEFERRED LEASING COSTS AND INTANGIBLE ASSETS, NET | $ | $ | |||||||||
| Below-market leases | $ | $ | |||||||||
| Accumulated amortization | ( | ( | |||||||||
| INTANGIBLE LIABILITIES, NET | $ | $ | |||||||||
The Company recognized the following amortization related to deferred leasing costs and intangibles:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Deferred leasing costs and in-place lease intangibles(1) | $ | ( | $ | ( | |||||||||||||||||||
Lease incentives(2) | $ | ( | $ | ( | |||||||||||||||||||
Below-market ground leases(3) | $ | ( | $ | ( | |||||||||||||||||||
Above-market leases(2) | $ | $ | ( | ||||||||||||||||||||
Customer relationships(1) | $ | $ | ( | ||||||||||||||||||||
Non-competition agreements(1) | $ | $ | ( | ||||||||||||||||||||
Below-market leases(2) | $ | $ | |||||||||||||||||||||
__________________
1.Amortization is recorded in depreciation and amortization expenses on the Consolidated Statements of Operations.
2.Amortization is recorded in office rental revenues on the Consolidated Statements of Operations.
During the three months ended March 31, 2025, the Company recorded a $0.1 million impairment charge related to the deferred leasing costs and intangible assets of the 625 Second office property. See Note 3 for details. The impairment charge is recorded within impairment loss on the Consolidated Statement of Operations.
7. Accounts Receivable
The Company’s accounting policy and methodology used to estimate the allowance for doubtful accounts related to receivables are discussed in the Company’s 2025 Annual Report on Form 10-K.
Accounts Receivable
As of March 31, 2026, accounts receivable was $14.7 million and there was a $0.6 million allowance for doubtful accounts. As of December 31, 2025, accounts receivable was $15.2 million and there was a $0.3 million allowance for doubtful accounts.
Straight-Line Rent Receivables
As of March 31, 2026, straight-line rent receivables was $200.4 million and there was no allowance for doubtful accounts. As of December 31, 2025, straight-line rent receivables was $195.4 million and there was no allowance for doubtful accounts.
20
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
8. Prepaid Expenses and Other Assets, net
The following table summarizes the Company’s prepaid expenses and other assets, net as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
| Non-real estate investments | $ | $ | |||||||||
| Interest rate derivative assets | |||||||||||
| Prepaid insurance | |||||||||||
| Deferred financing costs, net | |||||||||||
| Prepaid property tax | |||||||||||
| Other | |||||||||||
| PREPAID EXPENSES AND OTHER ASSETS, NET | $ | $ | |||||||||
Non-Real Estate Investments
The Company measures its investments in funds that do not have a readily determinable fair value using the Net Asset Value (“NAV”) practical expedient and uses NAV reported without adjustment unless it is aware of information indicating the NAV reported does not accurately reflect the fair value of the investment. Changes in the fair value of these non-real estate investments are included in unrealized loss on non-real estate investments on the Consolidated Statements of Operations. During the three months ended March 31, 2026 and 2025, the Company recognized unrealized losses of $2.0 million and $0.4 million, respectively, on its non-real estate investments due to the observable changes in fair value. As of March 31, 2026, the cumulative unrealized gain on the investments is $1.8 million.
9. Debt
The following table sets forth information with respect to the Company’s outstanding indebtedness:
| March 31, 2026 | December 31, 2025 | Interest Rate(1) | Contractual Maturity Date(2) | ||||||||||||||||||||||||||
| UNSECURED AND SECURED DEBT | |||||||||||||||||||||||||||||
| Unsecured debt | |||||||||||||||||||||||||||||
Unsecured revolving credit facility(3)(4) | $ | $ | SOFR + | 12/31/2029 | (5) | ||||||||||||||||||||||||
| 11/1/2027 | |||||||||||||||||||||||||||||
| 4/1/2029 | |||||||||||||||||||||||||||||
| 1/15/2030 | |||||||||||||||||||||||||||||
| 2/15/2028 | |||||||||||||||||||||||||||||
| Total unsecured debt | |||||||||||||||||||||||||||||
| Secured debt | |||||||||||||||||||||||||||||
Hollywood Media Portfolio CMBS(7)(8) | SOFR + | 8/9/2026 | |||||||||||||||||||||||||||
| Acquired Hollywood Media Portfolio CMBS debt | ( | ( | SOFR + | 8/9/2026 | |||||||||||||||||||||||||
Hollywood Media Portfolio CMBS, net(9)(10) | |||||||||||||||||||||||||||||
1918 Eighth CMBS(8) | 9/11/2030 | ||||||||||||||||||||||||||||
Hill7 CMBS(11) | 11/6/2028 | ||||||||||||||||||||||||||||
Office Portfolio CMBS(12)(13) | SOFR + | 4/9/2030 | (14) | ||||||||||||||||||||||||||
| Total secured debt | |||||||||||||||||||||||||||||
| Total unsecured and secured debt | |||||||||||||||||||||||||||||
Unamortized deferred financing costs/loan discounts(15) | ( | ( | |||||||||||||||||||||||||||
| TOTAL UNSECURED AND SECURED DEBT, NET | $ | $ | |||||||||||||||||||||||||||
JOINT VENTURE PARTNER DEBT(16) | $ | $ | 10/9/2032 | (17) | |||||||||||||||||||||||||
21
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
_________________
1.Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of March 31, 2026, which may be different than the interest rates as of December 31, 2025 for the corresponding indebtedness.
2.Maturity dates include the effect of extension options.
3.The annual facility fee rate ranges from 0.15 % or 0.30 % based on the operating partnership’s leverage ratio. The Company has an option to make an irrevocable election to change the interest rate depending on the Company’s credit rating or a specified base rate plus an applicable margin. As of March 31, 2026, no such election had been made.
4.The Company has a total capacity of $795.3 million available under its unsecured revolving credit facility, which may be increased up to a total of $2.0 billion either in the form of an increase to an existing unsecured revolving credit facility or a new loan, including a term loan, subject to the satisfaction of certain conditions and lender commitments.
5.$333.3 million of the revolving commitments have an initial maturity date of December 21, 2025 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company. The first extension option was exercised on December 10, 2025. $462.0 million of the revolving commitments have an initial maturity date of December 31, 2028 with an option to extend the initial maturity date twice for an additional six-month term each at the sole discretion of the Company.
6.An amount equal to the net proceeds from the 5.95 % registered senior notes has been allocated to new or existing eligible green projects.
7.This loan is secured by eight properties: Sunset Gower Studios, Sunset Las Palmas Studios, Sunset Bronson Studios, 6040 Sunset, Harlow, ICON, CUE and EPIC.
8.This loan is interest-only through its term.
9.The Company purchased bonds comprising the loan in the amount of $30.2 million.
10.The floating interest rate on $539.0 million of principal has been capped at 4.95 % through the use of an interest rate cap. The floating interest rate on $351.2 million of principal is effectively fixed at 3.31 % through the use of an interest rate swap. The floating interest rate on $179.6 million of principal is effectively fixed at 4.13 % through the use of an interest rate swap.
11.This loan bears interest only at 3.38 % until November 6, 2026, at which time the interest rate will increase and monthly debt service will include principal payments with a balloon payment at maturity.
12.This loan is secured by five office properties: 11601 Wilshire, 5th & Bell, 450 Alaskan, 1740 Technology and 275 Brannan.
13.The loan requires monthly payments of principal and interest. The floating interest rate on $250.0 million of principal has been effectively fixed at 3.41 % through the use of an interest rate swap. The floating interest rate on $8.8 million of principal is effectively fixed at 3.35 % through the use of an interest rate cap.
14.Includes the option to extend the initial maturity date of April 9, 2027 three times for an additional one-year term each, permitting certain financial and other covenants are met.
15.Excludes deferred financing costs related to the Company’s unsecured revolving credit facility, which are reflected in prepaid expenses and other assets, net on the Consolidated Balance Sheets. Refer to Note 8 for details.
16.This amount relates to debt attributable to PIMCO Prime Real Estate (“PIMCO”, formerly known as Allianz U.S. Private REIT LP), the Company’s partner in the joint venture that owns the Ferry Building property.
17.Includes the option to extend the initial maturity date of October 9, 2028 twice for additional two-year terms each, permitting certain financial covenants are met.
Current Year Activity
During the three months ended March 31, 2026, there were no repayments or borrowings on the unsecured revolving credit facility. The Company generally uses the unsecured revolving credit facility to finance the acquisition of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.
Indebtedness
The Company presents its financial statements on a consolidated basis. Notwithstanding such presentation, except to the extent expressly indicated, the Company’s separate property-owning subsidiaries are not obligors of or under the debt of their respective affiliates and each property-owning subsidiary’s separate liabilities do not constitute obligations of its respective affiliates.
Loan agreements include events of default that the Company believes are usual for loans and transactions of this type. As of the date of this filing, there have been no events of default associated with the Company’s loans.
The following table provides information regarding the Company’s future minimum principal payments due on the Company’s debt (after the impact of extension options, if applicable) as of March 31, 2026:
| Year | Unsecured and Secured Debt | Joint Venture Partner Debt | ||||||||||||
| Remaining 2026 | $ | $ | ||||||||||||
| 2027 | ||||||||||||||
| 2028 | ||||||||||||||
| 2029 | ||||||||||||||
| 2030 | ||||||||||||||
| Thereafter | ||||||||||||||
TOTAL | $ | $ | ||||||||||||
22
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Debt Covenants
The operating partnership’s ability to borrow under its unsecured loan arrangements remains subject to ongoing compliance with financial and other covenants as defined in the respective agreements. Certain financial covenant ratios are subject to change in the occurrence of material acquisitions as defined in the respective agreements. Other covenants include certain limitations on dividend payouts and distributions, limits on certain types of investments outside of the operating partnership’s primary business and other customary affirmative and negative covenants.
The following table summarizes existing covenants and their covenant levels as of March 31, 2026 related to our unsecured revolving credit facility and term loans:
| Covenant Ratio | Covenant Level | Actual Performance | ||||||||||||
| Total liabilities to total asset value | ≤ | |||||||||||||
| Unsecured indebtedness to unencumbered asset value | ≤ | |||||||||||||
| Adjusted EBITDA to fixed charges | ≥ | |||||||||||||
| Secured indebtedness to total asset value | ≤ | |||||||||||||
| Unencumbered NOI to unsecured interest expense | ≥ | |||||||||||||
| Minimum liquidity coverage | > $ | Yes | ||||||||||||
The following table summarizes existing covenants and their covenant levels related to the registered senior notes as of March 31, 2026:
Covenant Ratio(1) | Covenant Level | Actual Performance | ||||||||||||
| Debt to total assets | ≤ | |||||||||||||
| Total unencumbered assets to unsecured debt | ≥ | |||||||||||||
| Consolidated income available for debt service to annual debt service charge | ≥ | |||||||||||||
| Secured debt to total assets | ≤ | |||||||||||||
_________________
1.The covenant and actual performance metrics above represent terms and definitions reflected in the indentures governing the 3.25 % Senior Notes, 3.95 % Senior Notes, 4.65 % Senior Notes and 5.95 % Senior Notes.
The operating partnership was in compliance with its financial covenants as of March 31, 2026.
Repayment Guarantees
Although the rest of the operating partnership’s loans are secured and non-recourse, the operating partnership provides limited customary secured debt guarantees for items such as voluntary bankruptcy, fraud, misapplication of payments and environmental liabilities.
The Company and certain of its subsidiaries guarantee the operating partnership’s unsecured debt. The likelihood of loss relating to this guarantee is remote as of March 31, 2026.
Interest Expense
The following table represents a reconciliation from gross interest expense to interest expense on the Consolidated Statements of Operations:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Gross interest expense(1) | $ | $ | |||||||||||||||||||||
| Capitalized interest | ( | ( | |||||||||||||||||||||
Non-cash interest expense(2) | |||||||||||||||||||||||
INTEREST EXPENSE | $ | $ | |||||||||||||||||||||
_________________
1.Includes interest on the Company’s debt and hedging activities.
2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.
23
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
10. Derivatives
The Company enters into derivatives in order to hedge interest rate risk. Derivative assets are recorded in prepaid expenses and other assets and derivative liabilities are recorded in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets.
The Company has agreements with its derivative counterparties that contain a provision where the Company could be declared in default on its derivative obligations if repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness.
The Company’s derivatives are classified as Level 2 and their fair values are derived from estimated values obtained from observable market data for similar instruments.
The fair market value of derivatives is presented on a gross basis on the Consolidated Balance Sheets. The following table summarizes the Company’s derivative instruments as of March 31, 2026 and December 31, 2025:
| Fair Value Assets (Liabilities) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Underlying Debt Instrument | Type of Instrument | Accounting Policy(1) | Notional Amount | Effective Date | Maturity Date | Interest Rate | March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Hollywood Media Portfolio CMBS | Swap | Cash flow hedge | $ | August 2023 | June 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Hollywood Media Portfolio CMBS | Swap | Cash flow hedge | $ | February 2024 | August 2026 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
| Hollywood Media Portfolio CMBS | Cap | Partial cash flow hedge(2) | $ | August 2025 | August 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Hollywood Media Portfolio CMBS | Sold cap(3) | Mark-to-market | $ | August 2025 | August 2026 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Office Portfolio CMBS | Cap | Mark-to-market | $ | March 2025 | April 2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Office Portfolio CMBS | Sold cap(3) | Mark-to-market | $ | March 2025 | April 2027 | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Office Portfolio CMBS(4) | Cap | Cash flow hedge | $ | December 2025 | February 2027 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Office Portfolio CMBS(5) | Swap | Cash flow hedge | $ | December 2025 | April 2029 | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
| N/A | Corridor | Mark-to-market | $ | January 2026 | March 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| TOTAL | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
__________________
1.Accounting policy elections are as of March 31, 2026, which may be different than the policy elections as of December 31, 2025 for the corresponding instrument.
2.$539,000 of the notional amount of the Hollywood Media Portfolio CMBS cap has been designated as an effective cash flow hedge for accounting purposes. The remainder is accounted for under mark-to-market accounting.
3.The sold caps serve to offset the changes in fair value of the portion of the Hollywood Media Portfolio CMBS cap that is not designated as a cash flow hedge for accounting purposes and the change in fair value of the full Office Portfolio CMBS cap, which is not designated as a cash flow hedge for accounting purposes.
4.The notional amount decreases on a monthly basis to follow the amortization of the underlying debt instrument.
5.The notional amount will decrease on a monthly basis to follow the amortization of the underlying debt instrument commencing in February 2027.
The Company reclassifies unrealized gains and losses related to cash flow hedges into earnings in the same period during which the hedged forecasted transaction affects earnings. As of March 31, 2026, the Company expects $0.3 million of unrealized gain included in accumulated other comprehensive loss will be reclassified as a reduction to interest expense in the next 12 months.
11. Income Taxes
Hudson Pacific Properties, Inc. has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with its taxable year ended December 31, 2010. Provided that it continues to qualify for taxation as a REIT, Hudson Pacific Properties, Inc. is generally not subject to corporate-level income tax on the earnings distributed currently to its stockholders.
24
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
In general, the Company’s property-owning subsidiaries are limited liability companies and are treated as pass-through entities or disregarded entities (or, in the case of the entities that own the 1455 Market, Hill7, Ferry Building and 1918 Eighth properties, REITs) for federal income tax purposes. Accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements for the activities of these entities. In the case of the Bentall Centre property and the Sunset Waltham Cross Studios development, the Company owns its interest in the properties through non-U.S. entities treated as taxable REIT subsidiaries (“TRS”) for federal income tax purposes. Accordingly, a provision for foreign income taxes has been recorded in the accompanying consolidated financial statements based on the local tax laws and regulations of the respective tax jurisdictions.
The Company has elected, together with certain of its subsidiaries, to treat each such subsidiary as a TRS for federal income tax purposes. Certain activities that the Company may undertake, such as non-customary services for the Company’s tenants and holding assets that the Company cannot hold directly, will be conducted by a TRS. A TRS is subject to federal and, where applicable, state income taxes on its net income. During the three months ended March 31, 2026 and 2025, the Company recorded an income tax provision of $0.3 million and $0.2 million, respectively.
Deferred tax assets and liabilities are recognized for the net tax effect of temporary differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. A valuation allowance is recognized when it is determined that it is more likely than not that a deferred tax asset will not be realized. Considering all available evidence, the realizability of the Company’s deferred tax assets is not reasonably assured; therefore, the Company has recorded a valuation allowance against substantially all of its deferred tax assets as of March 31, 2026 and December 31, 2025. As additional evidence to support the realizability of the deferred tax assets becomes available, the Company may reverse the valuation allowance.
The Company is subject to the statutory requirements of the states in which it conducts business.
The Company periodically evaluates its tax positions to determine whether it is more likely than not that such positions would be sustained upon examination by a tax authority for all open tax years, as defined by the statute of limitations, based on their technical merits. As of March 31, 2026, the Company has not established a liability for uncertain tax positions.
The Company and certain of its TRSs file income tax returns with the U.S. federal government and various state and local jurisdictions. The Company and its TRSs are no longer subject to tax examinations by tax authorities for years prior to 2021. The Company has assessed its tax positions for all open years, which as of March 31, 2026 included 2022 to 2024 for federal purposes and 2021 to 2024 for state purposes, and concluded that there are no material uncertainties to be recognized.
12. Future Minimum Rents and Lease Payments
The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2026 to 2045.
The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of March 31, 2026:
| Year | Amount | |||||||
Remaining 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
| TOTAL | $ | |||||||
Operating Lease Agreements
The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 10 ground leases, six sound stage leases, four office leases and 16 other leases as of March 31, 2026. The weighted average remaining lease term was 22 years as of March 31, 2026. The weighted average incremental borrowing rate used to calculate the right-of-use (“ROU”) assets and lease liabilities was 5.7 % as of March 31, 2026. The Company’s operating lease obligations have expiration dates ranging from 2026 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value.
25
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
As of March 31, 2026, the present value of the remaining contractual payments of $623.0 million under the Company’s operating lease agreements was $339.8 million. The corresponding operating lease ROU assets amounted to $327.9 million.
The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of March 31, 2026:
| Year | Lease Payments(1) | |||||||
Remaining 2026 | $ | |||||||
| 2027 | ||||||||
| 2028 | ||||||||
| 2029 | ||||||||
| 2030 | ||||||||
| Thereafter | ||||||||
Total operating lease payments | ||||||||
| Less: interest portion | ( | |||||||
| PRESENT VALUE OF OPERATING LEASE LIABILITIES | $ | |||||||
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date.
The following table summarizes rental expense for operating leases:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Variable rental expense | $ | $ | |||||||||||||||||||||
| Minimum rental expense | $ | $ | |||||||||||||||||||||
13. Fair Value of Financial Instruments
The Company’s financial assets and liabilities measured and reported at fair value on a recurring basis include the following as of:
| March 31, 2026 | December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||
Interest rate derivative assets(1) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Interest rate derivative liabilities(2) | $ | $ | ( | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Non-real estate investments measured at NAV(1)(3) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
__________________
1.Included in prepaid expenses and other assets, net on the Consolidated Balance Sheets.
2.Included in accounts payable, accrued liabilities and other on the Consolidated Balance Sheets.
3.According to the relevant accounting standards, certain investments that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheets.
Level 2 items include interest rate derivatives, which are valued on a quarterly basis using a linear regression model. Fair value measurement using unobservable inputs is inherently uncertain, and a change in significant inputs could result in different fair values.
Other Financial Instruments
The carrying values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities are reasonable estimates of fair value, using Level 1 inputs, because of the short-term nature of these instruments. The fair values of debt are estimates based on rates currently prevailing for similar instruments of similar maturities using Level 2 inputs.
26
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
The table below represents the carrying value and fair value of the Company’s debt as of:
| March 31, 2026 | December 31, 2025 | ||||||||||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
Unsecured debt(1) | $ | $ | $ | $ | |||||||||||||||||||
Secured debt(1) | $ | $ | $ | $ | |||||||||||||||||||
| Consolidated joint venture partner debt | $ | $ | $ | $ | |||||||||||||||||||
_________________
1.Amounts represent debt excluding unamortized deferred financing costs and loan discounts/premiums.
14. Share/Unit-Based Compensation
The Company’s 2010 Incentive Plan permits the Company’s board of directors (the “Board”) to grant, among other things, restricted stock, restricted stock units, operating partnership performance units and performance-based awards. As of March 31, 2026, 0.9 million common shares were available for grant under the 2010 Plan. The calculation of shares available for grant is determined after taking into account unvested restricted stock, unvested operating partnership performance units and unvested RSUs, assuming the maximum bonus pool eligible ultimately is earned and based on a stock price of $5.91 .
The Board awards restricted shares to non-employee Board members on an annual basis as part of such Board members’ annual compensation and to newly elected non-employee Board members in accordance with the Non-Employee Director Compensation Program. The time-based awards are generally issued in the second quarter, in conjunction with the director’s election to the Board, and the individual share awards vest in equal annual installments over the applicable service vesting period, which is three years .
The Board awards time-based restricted shares, time-based cash settled restricted shares, or time-based operating partnership performance units to certain employees on an annual basis as part of the employees’ annual compensation. These time-based awards are generally issued in the first or fourth quarter and vest in equal annual installments over the applicable service vesting period, which is generally three years . Additionally, certain awards are subject to a mandatory holding period upon vesting if the grantee is an executive officer.
For 2023, the compensation committee of the Board (“Compensation Committee”) adopted an annual Hudson Pacific Properties, Inc. Performance Stock Unit Plan (“PSU Plan”). Under the PSU Plan, the Compensation Committee awards restricted stock units or performance units in the operating partnership to certain employees. The 2023 PSU Plan grants contain Operational Performance Units, which are eligible to vest based on the achievement of operational metrics over a one-year performance period and vest over three years . The number of Operational Performance Units that becomes eligible to vest based on the achievement of operational performance metrics may be adjusted based on the Company’s achievement of the Company’s Relative Total Shareholder Return (“TSR”) compared to the TSR of the FTSE NAREIT All Equity REITs index over a three-year performance period. Certain of the awards granted under the PSU Plan are subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred.
For 2024, the Compensation Committee adopted an annual equity award program for its top three executive officers consisting of a grant of time-based operating partnership performance units and a grant of market-based operating partnership performance units. The time-based awards were to vest in equal annual installments over the applicable service vesting period, which was five years . The market-based awards were to vest upon satisfaction of both the performance and service-based requirements. In June 2025, the top three executive officers agreed to a cancellation of their 2024 performance unit equity awards, which resulted in the accelerated recognition of the remaining unamortized compensation expense of $14.3 million during the second quarter of 2025, which was recorded in general and administrative on the Consolidated Statement of Operations.
The Compensation Committee did not adopt a performance-based equity award program for 2025.
For 2026, the Compensation Committee adopted an annual equity award program for five of its executive officers consisting of a grant of time-based operating partnership performance units and a grant of market-based operating partnership performance units. The time-based awards will vest in equal annual installments over the applicable service vesting period, which is three years . The market-based awards will vest upon satisfaction of both the performance and service-based requirements. The quantity earned is based on the achievement of relative total shareholder return goals over the three-year performance period commencing January 1, 2026 and ending December 31, 2028. The awards will satisfy the service-based requirement subject to the executives’ continued service with the Company through December 31, 2028. The awards are also subject to a two-year post-vesting restriction period, during which any awards earned may not be sold or transferred.
27
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
The following table presents the classification and amount recognized for share/unit-based compensation related to the Company’s awards:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Expensed share/unit-based compensation(1) | $ | $ | |||||||||||||||||||||
Capitalized share/unit-based compensation(2) | |||||||||||||||||||||||
TOTAL SHARE/UNIT-BASED COMPENSATION(3) | $ | $ | |||||||||||||||||||||
_________________
1.Amounts are recorded in general and administrative expenses, office operating expenses and studio operating expenses on the Consolidated Statements of Operations.
2.Amounts are recorded in investment in real estate, at cost on the Consolidated Balance Sheets.
3.Amounts are recorded in accounts payable, accrued liabilities and other, additional paid-in capital and non-controlling interest—units in the operating partnership on the Consolidated Balance Sheets.
15. Earnings Per Share
Hudson Pacific Properties, Inc.
The Company calculates basic earnings per share using the two-class method by dividing the net income available to common stockholders for the period by the weighted average number of common shares outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested restricted stock units (“RSUs”) that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per share pursuant to the two-class method. The Company calculates diluted earnings per share using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three months ended March 31, 2026 and 2025, both methods of calculation yielded the same diluted earnings per share amount. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock, where such exercise or conversion would result in a lower earnings per share amount.
The following table reconciles the numerator and denominator in computing the Company’s basic and diluted earnings per share to net loss available to common stockholders:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
Basic and diluted net loss available to common stockholders | $ | ( | $ | ( | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
Basic weighted average common shares outstanding(1) | |||||||||||||||||||||||
Effect of dilutive instruments(2) | |||||||||||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||||||||||||||
| Basic earnings per common share | $ | ( | $ | ( | |||||||||||||||||||
| Diluted earnings per common share | $ | ( | $ | ( | |||||||||||||||||||
__________________
1.Basic weighted average common shares outstanding includes common shares issuable upon the exercise of pre-funded warrants in the amount of 10,223,269 for the three months ended March 31, 2026. The warrants are exercisable at any time for nominal consideration.
2.The Company includes unvested awards and convertible common and participating units as contingently issuable shares in the computation of diluted earnings per share once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per share calculation.
Hudson Pacific Properties, L.P.
The operating partnership calculates basic earnings per unit using the two-class method by dividing the net income available to common unitholders for the period by the weighted average number of common units outstanding during the period. Unvested time-based restricted stock awards, unvested time-based performance unit awards and unvested RSUs that contain non-forfeitable rights to dividends are participating securities and are included in the computation of earnings per unit pursuant to the two-class method. The operating partnership calculates diluted earnings per unit using the two-class method or the treasury stock and if-converted method, whichever results in more dilution. For the three months ended March 31, 2026 and 2025, both methods of calculation yielded the same diluted earnings per unit amount. Diluted earnings per unit reflects the potential dilution that could occur if securities or other contracts to issue common units were exercised or converted into common units, where such exercise or
28
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
conversion would result in a lower earnings per unit amount.
The following table reconciles the numerator and denominator in computing the operating partnership’s basic and diluted earnings per unit to net loss available to common unitholders:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Numerator: | |||||||||||||||||||||||
| Basic and diluted net loss available to common unitholders | $ | ( | $ | ( | |||||||||||||||||||
| Denominator: | |||||||||||||||||||||||
Basic weighted average common units outstanding(1) | |||||||||||||||||||||||
Effect of dilutive instruments(2) | |||||||||||||||||||||||
| DILUTED WEIGHTED AVERAGE COMMON UNITS OUTSTANDING | |||||||||||||||||||||||
| Basic earnings per common unit | $ | ( | $ | ( | |||||||||||||||||||
| Diluted earnings per common unit | $ | ( | $ | ( | |||||||||||||||||||
__________________
1.Basic weighted average common units outstanding includes common units issuable upon the exercise of pre-funded warrants in the amount of 10,223,269 for the three months ended March 31, 2026. The warrants are exercisable at any time for nominal consideration.
2.The operating partnership includes unvested awards as contingently issuable units in the computation of diluted earnings per unit once the market or performance criteria are met, assuming that the end of the reporting period is the end of the contingency period. Any anti-dilutive securities are excluded from the diluted earnings per unit calculation.
16. Redeemable Non-controlling Interest
Redeemable Preferred Units of the Operating Partnership
As of March 31, 2026 and December 31, 2025, there were 111,777 6.25 % per annum on the liquidation preference of $25.00 per unit. The units are convertible at the option of the holder into common units or redeemable for cash or, at the Company’s election, exchangeable for registered shares of common stock.
Redeemable Non-controlling Interest in Consolidated Real Estate Entities
On October 9, 2018, the Company entered into a joint venture with PIMCO (formerly known as Allianz U.S. Private REIT LP) to purchase the Ferry Building property. The Company has a 55 % interest in the joint venture that owns the Ferry Building property. The Company has a put right, if certain events occur, to sell its interest at fair market value. PIMCO has a put right, if certain events occur, to sell its interest at fair market value, which is a redemption right that is not solely within the control of the Company. Therefore, the non-controlling interest related to this joint venture is included as temporary equity. The put right is not currently redeemable.
The following table reconciles the beginning and ending balances of redeemable non-controlling interests:
| Three Months Ended March 31, 2026 | |||||||||||||||||||||||
| Series A Redeemable Preferred Units | Consolidated Real Estate Entities | ||||||||||||||||||||||
| BEGINNING OF PERIOD | $ | $ | |||||||||||||||||||||
| Declared dividend | ( | ||||||||||||||||||||||
| Net income (loss) | ( | ||||||||||||||||||||||
| END OF PERIOD | $ | $ | |||||||||||||||||||||
29
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
17. Equity
The table below presents the activity related to Hudson Pacific Properties, Inc.’s accumulated other comprehensive loss (“AOCI”):
Derivative Instruments | Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2025 | $ | ( | $ | ( | $ | ( | ||||||||||||||
| Unrealized gain (loss) recognized in AOCI | ( | ( | ||||||||||||||||||
Reclassification from AOCI into income(1) | ( | ( | ||||||||||||||||||
| Net change in AOCI | ( | ( | ||||||||||||||||||
BALANCE AT MARCH 31, 2026 | $ | $ | ( | $ | ( | |||||||||||||||
__________________
1.The gains and losses on the Company’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations.
The table below presents the activity related to Hudson Pacific Properties, L.P.’s AOCI:
Derivative Instruments | Currency Translation Adjustments | Total Accumulated Other Comprehensive Loss | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2025 | $ | ( | $ | ( | $ | ( | ||||||||||||||
| Unrealized gain (loss) recognized in AOCI | ( | ( | ||||||||||||||||||
Reclassification from AOCI into income(1) | ( | ( | ||||||||||||||||||
| Net change in AOCI | ( | ( | ||||||||||||||||||
BALANCE AT MARCH 31, 2026 | $ | $ | ( | $ | ( | |||||||||||||||
__________________
1.The gains and losses on the operating partnership’s derivative instruments classified as hedges are reported in interest expense on the Consolidated Statements of Operations.
Non-controlling Interests
Common Units in the Operating Partnership
Common units of the operating partnership and shares of common stock of the Company have essentially the same economic characteristics, as they share equally in the total net income or loss distributions of the operating partnership. Investors who own common units have the right to cause the operating partnership to repurchase any or all of their common units for cash at a value equal to the then-current market value of one share of common stock. However, in lieu of such payment of cash, the Company may, at its election, issue shares of its common stock in exchange for such common units on a one -for-one basis.
Performance Units in the Operating Partnership
Performance units are partnership interests in the operating partnership. Each performance unit awarded will be deemed equivalent to an award of one share of common stock under the 2010 Plan, reducing the availability for other equity awards on a one -for-one basis. Under the terms of the performance units, the operating partnership will revalue its assets for tax purposes upon the occurrence of certain specified events and any increase in valuation from the time of grant until such event will be allocated first to the holders of performance units to equalize the capital accounts of such holders with the capital accounts of common unitholders. Subject to any agreed upon exceptions, once vested and having achieved parity with common unitholders, performance units are convertible into common units in the operating partnership on a one -for-one basis.
30
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Ownership Interest in the Operating Partnership
The following table summarizes the ownership interest in the operating partnership, excluding unvested restricted units and unvested restricted performance units, as of:
| March 31, 2026 | December 31, 2025 | ||||||||||
Company-owned common units in the operating partnership | |||||||||||
Company’s ownership interest percentage | % | % | |||||||||
Non-controlling common units in the operating partnership(1) | |||||||||||
Non-controlling ownership interest percentage | % | % | |||||||||
_________________
1.Represents common units held by certain of the Company’s executive officers, directors and other outside investors. As of March 31, 2026, this amount represents both common units and performance units of 58,076 and 1,151,038 , respectively. As of December 31, 2025, this amount represents both common units and performance units of 58,076 and 647,843 , respectively.
Common Stock Activity
The Company did not complete any common stock offerings during the three months ended March 31, 2026.
The Company’s has an at-the-market (“ATM”) program that permits sales of up to $125.0 million of common stock. The Company did not utilize the ATM program during the three months ended March 31, 2026. A cumulative total of $65.8 million has been sold as of March 31, 2026.
Share Repurchase Program
The Company is authorized to repurchase shares of its common stock up to a total of $250.0 million under the share repurchase program. The Company did not utilize the share repurchase program during the three months ended March 31, 2026. Since commencement of the program through March 31, 2026, a cumulative total of $214.7 million has been repurchased. Share repurchases are accounted for on the trade date. The Company may make repurchases under the program at any time in its discretion, subject to market conditions, applicable legal requirements and other factors.
Series C Cumulative Redeemable Preferred Stock
Series C cumulative redeemable preferred stock relates to the 17,000,000 shares of our Series C preferred stock, $0.01 par value per share. Holders of Series C preferred stock, when and as authorized by the Board, are entitled to cumulative cash dividends at the rate of 4.750 % per annum of the $25.00 per share, equivalent to $1.1875 25.00 per share, before the holders of common stock in the event of any voluntary or involuntary liquidation, dissolution or winding-up of the Company’s affairs. Generally, shares of Series C preferred stock are not redeemable by the Company prior to November 16, 2026. However, upon the occurrence of a change of control, holders of the Series C preferred stock will have the right to convert into a specified number of shares of common stock, unless the Company has elected to redeem the Series C preferred stock.
31
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
Dividends
The Board has historically declared dividends on a quarterly basis and the Company has paid the dividends during the quarters in which the dividends were declared. Declaration of any future dividends will be determined by the Company’s Board of Directors after considering the Company’s obligations under its various financing agreements, projected taxable income, compliance with its debt covenants, long-term operating projections, expected capital requirements and the risks affecting the Company’s business. The following table summarizes dividends per share declared and paid for the periods presented:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Common stock(1) | $ | $ | |||||||||||||||||||||
Common units and vested performance units(1) | $ | $ | |||||||||||||||||||||
| Series A preferred units | $ | $ | |||||||||||||||||||||
| Series C preferred stock | $ | $ | |||||||||||||||||||||
Unvested performance units(1)(2) | $ | $ | |||||||||||||||||||||
| Payment date | March 30, 2026 | March 31, 2025 | |||||||||||||||||||||
| Record date | March 20, 2026 | March 21, 2025 | |||||||||||||||||||||
_________________
1.The Company suspended its quarterly common stock dividend during the first quarter of 2026 and 2025. As a result, the common unit and performance unit dividends were also suspended.
2.Performance-based units are entitled to dividends equal to the common stock dividends declared by the Company. During their vesting period, unvested performance-based units receive 10 0.6 million of accrued dividends related to the performance units that vested on December 31, 2025.
Taxability of Dividends
Earnings and profits, which determine the taxability of distributions to stockholders, may differ from income reported for financial reporting purposes due to the differences for federal income tax purposes in the treatment of loss on extinguishment of debt, revenue recognition, compensation expense and the basis of depreciable assets and estimated useful lives used to compute depreciation.
18. Segment Reporting
The Company’s reporting segments are based on the Company’s method of internal reporting, which classifies its operations into two reportable segments: (i) office properties and related operations and (ii) studio properties and related operations. The Company evaluates performance based upon net operating income of the segment operations. General and administrative expenses and interest expense are not included in segment profit as the Company’s internal reporting addresses these items on a corporate level.
The President, Chief Financial Officer and Chief Operating Officer, collectively, are the Company’s Chief Operating Decision-Maker (“CODM”). They evaluate performance and allocate resources based on net operating income because it provides relevant and useful information by reflecting only income and operating expense items that are incurred at the segment level and presenting it on an unlevered basis.
Asset information by segment is not reported because the Company does not use this measure to assess performance or make decisions to allocate resources; therefore, depreciation and amortization expense is not allocated among segments. Segment assets consist of investment in real estate, non-real estate property, plant and equipment, net, accounts receivable, net, straight-line rent receivables, net, deferred leasing costs and intangible assets, net, operating lease ROU assets and goodwill. Non-segment assets consist of assets in the Company’s corporate non-segment assets, including cash and cash equivalents, restricted cash, prepaid expenses and other assets, net, investment in unconsolidated real estate entities and assets associated with real estate held for sale. Reportable segment asset information is not provided to the CODM as the CODM do not use segment asset information to evaluate the business and allocate resources.
32
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
The table below presents the operating activity of the Company’s reportable segments:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Office segment | |||||||||||||||||||||||
| Core office revenues | $ | $ | |||||||||||||||||||||
| Core office expenses | |||||||||||||||||||||||
| Utilities | ( | ( | |||||||||||||||||||||
| Taxes | ( | ( | |||||||||||||||||||||
| Administrative | ( | ( | |||||||||||||||||||||
| Insurance | ( | ( | |||||||||||||||||||||
Other segment expenses(1) | ( | ( | |||||||||||||||||||||
| Total core office expenses | ( | ( | |||||||||||||||||||||
| Office net operating income | |||||||||||||||||||||||
| Studio segment | |||||||||||||||||||||||
| Studio revenues | |||||||||||||||||||||||
| Studio expenses | |||||||||||||||||||||||
| Rent expense & real estate taxes | ( | ( | |||||||||||||||||||||
| Cost of goods sold | ( | ( | |||||||||||||||||||||
Other segment expenses(2) | ( | ( | |||||||||||||||||||||
| Total studio expenses | ( | ( | |||||||||||||||||||||
| Studio net operating income | ( | ||||||||||||||||||||||
| TOTAL SEGMENT PROFIT | $ | $ | |||||||||||||||||||||
_________________
1.Includes ground lease rent, cleaning, parking, engineering, security, mechanical, electrical & plumbing and repairs & maintenance expenses.
2.Includes administrative, utilities, security, cleaning, engineering and repairs & maintenance expenses.
The table below presents the reconciliation of segment revenue to consolidated revenue:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Office segment | |||||||||||||||||||||||
| Core office revenues | $ | $ | |||||||||||||||||||||
| Chargebacks | |||||||||||||||||||||||
| Total office revenues | |||||||||||||||||||||||
| Studio segment | |||||||||||||||||||||||
| Total studio revenues | |||||||||||||||||||||||
| Total revenues | $ | $ | |||||||||||||||||||||
33
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
The table below reconciles net loss to total profit from all segments:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| NET LOSS | $ | ( | $ | ( | |||||||||||||||||||
| General and administrative | |||||||||||||||||||||||
| Depreciation and amortization | |||||||||||||||||||||||
| Loss from unconsolidated real estate entities | |||||||||||||||||||||||
| Fee income | ( | ( | |||||||||||||||||||||
| Interest expense | |||||||||||||||||||||||
| Interest income | ( | ( | |||||||||||||||||||||
| Management services reimbursement income—unconsolidated real estate entities | ( | ( | |||||||||||||||||||||
| Management services expense—unconsolidated real estate entities | |||||||||||||||||||||||
| Transaction-related expenses | |||||||||||||||||||||||
| Unrealized loss on non-real estate investments | |||||||||||||||||||||||
| Gain on sale of real estate, net | ( | ||||||||||||||||||||||
| Impairment loss | |||||||||||||||||||||||
| Loss on extinguishment of debt | |||||||||||||||||||||||
| Other income | ( | ( | |||||||||||||||||||||
| Income tax provision | |||||||||||||||||||||||
| TOTAL PROFIT FROM ALL SEGMENTS | $ | $ | |||||||||||||||||||||
19. Related Party Transactions
Employment Agreements
The Company entered into employment agreements with certain of its executive officers, which became effective January 1, 2025, that provide for various severance and change in control benefits and other terms and conditions of employment.
Cost Reimbursements from Unconsolidated Real Estate Entities
The Company is reimbursed for certain costs incurred in managing certain of its unconsolidated real estate entities. During the three months ended March 31, 2026 and 2025, the Company recognized $1.1 million and $1.0 million, respectively, of such reimbursement income in management services reimbursement income—unconsolidated real estate entities on the Consolidated Statements of Operations.
Related Party Leases
The Company’s wholly-owned subsidiary is party to long-term operating lease agreements with an unconsolidated joint venture for office space and fitness and conference facilities. As of March 31, 2026, the Company’s ROU assets and lease liabilities related to these lease obligations were $3.9 million and $4.1 million, respectively, as compared to ROU assets and lease liabilities of $4.2 million and $4.4 million, respectively, as of December 31, 2025. During the three months ended March 31, 2026 and 2025, the Company recognized $0.3 million of related rental expense related to these leases in management services expense—unconsolidated real estate entities on the Consolidated Statements of Operations.
20. Commitments and Contingencies
Fund Investments
The Company invests in several non-real estate funds with an aggregate commitment to contribute up to $51.0 million. As of March 31, 2026, the Company has contributed $43.0 million to these funds, net of distributions, with $8.0 million remaining to be contributed.
Legal
From time to time, the Company is party to various lawsuits, claims and other legal proceedings arising out of, or incident
34
Table of Contents
Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P.
Notes to Unaudited Consolidated Financial Statements
(Unaudited, tabular amounts in thousands, except square footage, share and unit data)
to, the ordinary course of business. Management believes, based in part upon consultation with legal counsel, that the ultimate resolution of all such claims will not have a material adverse effect on the Company’s results of operations, financial position or cash flows. As of March 31, 2026, the risk of material loss from such legal actions impacting the Company’s financial condition or results from operations has been assessed as remote.
Letters of Credit
As of March 31, 2026, the Company had $2.0 million in outstanding letters of credit under the unsecured revolving credit facility, the majority of which was related to the completion guarantee associated with the Sunset Pier 94 Studios development. Additionally, the Company had $6.3 million in outstanding letters of credit related to tenant improvement obligations for the properties securing the Office Portfolio CMBS loan.
Contractual Obligations
The Company has entered into a number of construction agreements related to its development activities at various properties and its obligations under executed leases. As of March 31, 2026, the Company had $106.4 million in related commitments.
21. Supplemental Cash Flow Information
Supplemental cash flow information for Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. is included as follows:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash paid for interest, net of capitalized interest | $ | $ | |||||||||
| Non-cash investing and financing activities | |||||||||||
| Accounts payable and accrued liabilities for real estate investments | $ | $ | |||||||||
| Operating lease liability remeasurements | $ | $ | |||||||||
Restricted cash primarily consists of amounts held by lenders to fund reserves such as capital improvements, taxes, insurance, debt service and operating expenditures. The following table provides a reconciliation of cash and cash equivalents and restricted cash at the beginning and end of the periods presented for Hudson Pacific Properties, Inc and Hudson Pacific Properties, L.P.:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| BEGINNING OF PERIOD | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| TOTAL | $ | $ | |||||||||
| END OF PERIOD | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Restricted cash | |||||||||||
| TOTAL | $ | $ | |||||||||
35
Table of Contents
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion relates to our consolidated financial statements and should be read in conjunction with the consolidated financial statements and the related notes, refer to Part I, Item 1 “Financial Statements of Hudson Pacific Properties, Inc.,” “Financial Statements of Hudson Pacific Properties, L.P.” and “Notes to Unaudited Consolidated Financial Statements.” Statements in this Item 2 contain forward-looking statements. For a discussion of important risks related to our business and related to investing in our securities, including risks that could cause actual results and events to differ materially from results and events referred to in the forward-looking statements, refer to Part II, Item 1A “Risk Factors.” In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this report might not occur.
Forward-looking Statements
Certain written and oral statements made or incorporated by reference from time to time by us or our representatives in this Quarterly Report on Form 10-Q, other filings or reports filed with the SEC, press releases, conferences, or otherwise, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act of 1933, as amended, or the Securities Act, as amended, and Section 21E of the Exchange Act). In particular, statements relating to our liquidity and capital resources, portfolio performance and results of operations contain forward-looking statements. Furthermore, all of the statements regarding future financial performance (including anticipated funds from operations, or “FFO”, market conditions and demographics) are forward-looking statements. We are including this cautionary statement to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any such forward-looking statements. We caution investors that any forward-looking statements presented in this Quarterly Report on Form 10-Q, or that management may make orally or in writing from time to time, are based on management’s beliefs and assumptions made by, and information currently available to, management. When used, the words “anticipate,” “believe,” “expect,” “intend,” “may,” “might,” “plan,” “estimate,” “project,” “should,” “will,” “result” and similar expressions that do not relate solely to historical matters are intended to identify forward-looking statements. Such statements are subject to risks, uncertainties and assumptions and may be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends.
Some of the risks and uncertainties that may cause our actual results, performance, liquidity or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following:
•adverse economic or real estate developments in our target markets;
•general economic conditions;
•defaults on, early terminations of or non-renewal of leases by tenants;
•fluctuations in interest rates and increased operating costs;
•our failure to obtain necessary outside financing, maintain an investment grade rating or maintain compliance with covenants under our financing arrangements;
•our failure to generate sufficient cash flows to service our outstanding indebtedness and maintain dividend payments;
•lack or insufficient amounts of insurance;
•decreased rental rates or increased vacancy rates;
•difficulties in identifying properties to acquire or dispose and completing acquisitions or dispositions;
•our failure to successfully operate acquired properties and operations;
•our failure to maintain our status as a REIT;
•the loss of key personnel;
•environmental uncertainties and risks related to adverse weather conditions and natural disasters;
•financial market and foreign currency fluctuations;
•risks related to acquisitions generally, including the diversion of management’s attention from ongoing business operations and the impact on customers, tenants, lenders, operating results and business;
•the inability to successfully integrate acquired properties, realize the anticipated benefits of acquisitions or capitalize on value creation opportunities;
•changes in the tax laws and uncertainty as to how those changes may be applied;
•changes in real estate and zoning laws and increases in real property tax rates; and
•other factors affecting the real estate industry generally.
The risks set forth above are not exhaustive. Other sections of this report may include additional factors that could adversely affect our business and financial performance. Moreover, we operate in a highly competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor
36
Table of Contents
can it assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Investors should also refer to our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for future periods and Current Reports on Form 8-K as we file them with the SEC, and to other materials we may furnish to the public from time to time through Current Reports on Form 8-K or otherwise, for a discussion of risks and uncertainties that may cause actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements. We expressly disclaim any responsibility to update any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events, or otherwise, and you should not rely upon these forward-looking statements after the date of this report.
Executive Summary
Through our interest in Hudson Pacific Properties, L.P. (our operating partnership) and its subsidiaries, at March 31, 2026, our portfolio of owned real estate included office properties comprising approximately 13.9 million square feet, studio properties comprising approximately 45 sound stages and 1.7 million square feet and land properties comprising approximately 3.7 million square feet of undeveloped density rights. Our production services assets include vehicles, lighting and grip, production supplies and other equipment and the lease rights to 20 sound stages.
The following table summarizes our consolidated and unconsolidated portfolio as of March 31, 2026:
| Number of Properties | Rentable Square Feet(1) | Percent Occupied(2) | Percent Leased(2) | Annualized Base Rent per Square Foot(3) | |||||||||||||||||||||||||||||||
| OFFICE | |||||||||||||||||||||||||||||||||||
Same-store(4) | 37 | 11,372,298 | 75.9 | % | 76.2 | % | $ | 57.22 | |||||||||||||||||||||||||||
| Non-same store | 1 | 1,532,492 | 92.3 | 94.3 | 30.24 | ||||||||||||||||||||||||||||||
| Total in-service office | 38 | 12,904,790 | 77.8 | % | 78.4 | % | $ | 53.42 | |||||||||||||||||||||||||||
| STUDIO | |||||||||||||||||||||||||||||||||||
Same-store(5) | 3 | 1,204,666 | 84.5 | % | 84.5 | % | $ | 46.15 | |||||||||||||||||||||||||||
Non-same store(6) | 2 | 475,084 | 25.3 | 25.3 | 44.71 | ||||||||||||||||||||||||||||||
| Total in-service studio | 5 | 1,679,750 | 67.7 | % | 67.7 | % | $ | 46.25 | |||||||||||||||||||||||||||
| Total | 43 | 14,584,540 | |||||||||||||||||||||||||||||||||
Repositioning(7) | 2 | 519,350 | 0.2 | % | 0.2 | % | $ | — | |||||||||||||||||||||||||||
Development(8) | 1 | 546,000 | 0.5 | 0.5 | — | ||||||||||||||||||||||||||||||
| Held-for-sale | 0 | 0 | — | — | — | ||||||||||||||||||||||||||||||
| Total repositioning, development and held-for-sale | 3 | 1,065,350 | 0.3 | % | 0.3 | % | $ | — | |||||||||||||||||||||||||||
| Total office and studio properties | 46 | 15,649,890 | |||||||||||||||||||||||||||||||||
Future development(9) | 6 | 3,162,212 | |||||||||||||||||||||||||||||||||
| TOTAL | 52 | 18,812,102 | |||||||||||||||||||||||||||||||||
__________________
1.Determined by management based upon estimated leasable square feet, which may be less or more than the Building Owners and Managers Association (“BOMA”) rentable area. Square footage may change over time due to re-measurement or re-leasing.
2.Percent occupied for office properties is calculated as (i) square footage under commenced leases as of March 31, 2026, divided by (ii) total square feet, expressed as a percentage. Percent leased for office properties includes uncommenced leases. Percent leased for studio properties is calculated as (i) average square footage under commenced leases for the 12 months ended March 31, 2026, divided by (ii) total square feet, expressed as a percentage. Percent occupied/leased for studio properties is calculated based on the average percent occupied during the three months ended March 31, 2026.
3.Annualized base rent (“ABR”) per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of March 31, 2026 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of March 31, 2026. For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of March 31, 2026. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options. Where applicable, rental rates converted to USD using the foreign currency exchange rate as of March 31, 2026. Annualized base rent per square foot for studio properties reflects actual base rent for the 12 months ended March 31, 2026, excluding tenant reimbursements. ABR per leased square foot calculated as (i) annual base rent divided by (ii) square footage under lease as of March 31, 2026.
4.Same-store office for the three months ended March 31, 2026 defined as all properties owned and included in our stabilized office portfolio as of January 1, 2025 and still owned and included in the stabilized office portfolio as of March 31, 2026.
5.Includes studio properties owned and included in our portfolio as of January 1, 2025 and still owned and included in our portfolio as of March 31, 2026.
6.Includes 231,784 square feet related to recently completed development Sunset Pier 94 studios and 243,300 square feet related to Sunset Glenoaks Studios.
37
Table of Contents
7.Refer to Repositioning table in this document for the office and studio projects under repositioning as of March 31, 2026.
8.Includes 546,000 square feet related to the office development Washington 1000.
9.Includes entitlement to develop up to 428,623 square feet (508 residential units) at 10900-10950 Washington.
The following table provides information regarding the 15 largest tenants in our office portfolio based on HPP’s share of annualized base rent as of March 31, 2026:
| Tenant | # of Properties | Lease Expiration | Total Occupied Square Feet | HPP’s Share | ||||||||||||||||||||||||||||||||||
Annualized Base Rent(1) | Percent of Annualized Base Rent | |||||||||||||||||||||||||||||||||||||
| 1 | Google, Inc. | 3 | 2028-2029 | 458,054 | (2) | $ | 40,204,174 | 9.0 | % | |||||||||||||||||||||||||||||
| 2 | Netflix, Inc. | 3 | 9/30/31 | 722,305 | (3) | 27,353,579 | 6.1 | |||||||||||||||||||||||||||||||
| 3 | Amazon | 2 | 2030-2031 | 850,964 | (4) | 24,733,556 | 5.5 | |||||||||||||||||||||||||||||||
| 4 | City and County of San Francisco | 2 | 2033-2067 | 429,595 | (5) | 17,769,342 | 4.0 | |||||||||||||||||||||||||||||||
| 5 | Nutanix, Inc. | 2 | 2030 | 229,755 | (6) | 12,653,291 | 2.8 | |||||||||||||||||||||||||||||||
| 6 | Salesforce.com | 1 | 2027-2028 | 176,400 | (7) | 10,746,119 | 2.4 | |||||||||||||||||||||||||||||||
| 7 | Dell EMC Corporation | 2 | 2026-2032 | 130,021 | (8) | 9,354,339 | 2.1 | |||||||||||||||||||||||||||||||
| 8 | Coupa Software Incorporated | 1 | 11/30/33 | 100,654 | 8,077,212 | 1.8 | ||||||||||||||||||||||||||||||||
| 9 | Weil, Gotshal & Manges LLP | 1 | 2026-2038 | 89,249 | (9) | 6,924,439 | 1.5 | |||||||||||||||||||||||||||||||
| 10 | X.AI Corp. | 1 | 10/31/31 | 105,536 | 6,838,733 | 1.5 | ||||||||||||||||||||||||||||||||
| 11 | PayPal, Inc. | 1 | 7/17/26 | 131,701 | (10) | 6,549,823 | 1.5 | |||||||||||||||||||||||||||||||
| 12 | Glu Mobile, Inc. | 1 | 11/30/27 | 61,381 | 5,637,567 | 1.3 | ||||||||||||||||||||||||||||||||
| 13 | Redfin Corporation | 2 | 2026-2027 | 115,968 | (11) | 5,135,569 | 1.1 | |||||||||||||||||||||||||||||||
| 14 | Rivian Automotive, Inc. | 1 | 4/30/28 | 55,805 | 4,980,956 | 1.1 | ||||||||||||||||||||||||||||||||
| 15 | Covington & Burling LLP | 1 | 8/31/28 | 40,779 | 4,483,680 | 1.0 | ||||||||||||||||||||||||||||||||
| TOTAL | 3,698,167 | $ | 191,442,379 | 42.7 | % | |||||||||||||||||||||||||||||||||
_____________
1.Annualized base rent is calculated by multiplying (i) base rental payments (defined as cash base rents (before abatements or deferments)) under commenced leases as of March 31, 2026, by (ii) 12. Annualized base rent does not reflect tenant reimbursements. Annualized base rents related to Bentall Centre have been converted from CAD to USD using the foreign currency exchange rate as of March 31, 2026.
2.Google, Inc. expirations: (i) 208,843 square feet at Rincon Center on February 29, 2028, (ii) 207,857 square feet at 3400 Hillview on November 30, 2028 and (iii) 41,354 square feet at Ferry Building on October 31, 2029.
3.Netflix, Inc. expirations: (i) 326,792 square feet at ICON, (ii) 301,127 square feet at EPIC and (iii) 94,386 square feet at CUE.
4.Amazon expirations: (i) 659,150 square feet at 1918 Eighth on September 30, 2030 and (ii) 191,814 square feet at 5th & Bell on May 31, 2031.
5.City and County of San Francisco expirations: (i) 39,573 square feet at 1455 Market on September 19, 2033, (ii) 389,316 square feet at 1455 Market on April 30, 2045 and (iii) 706 square feet at Ferry Building on April 30, 2067.
6.Nutanix expirations: (i) 215,857 square feet at 1740 Technology on May 31, 2030 and (ii) 13,898 square feet at Metro Plaza on July 31, 2030.
7.Salesforce.com expirations at Rincon Center: (i) 83,372 square feet on April 30, 2027 and (ii) 93,028 square feet on October 31, 2028. Salesforce.com subleases to Twilio Inc. and pays base rent plus 50% of sublease rent (currently an additional $290,000 per month).
8.Dell EMC Corporation expirations: (i) 83,549 square feet at 875 Howard on June 30, 2026 and (ii) 46,472 square feet at 505 First on April 30, 2032.
9.Weil, Gotshal & Manges, LLP expirations at Towers at Shore Center: (i) 29,846 square feet on August 31, 2026 and (ii) 59,403 square feet on February 28, 2038.
10.PayPal, Inc. has exercised their early termination right at Fourth & Traction for July 2026.
11.Redfin Corporation expirations: (i) 2,978 square feet at Gateway on September 30, 2026 and (ii) 112,990 square feet at Hill7 on July 31, 2027.
38
Table of Contents
Overview
We had no property acquisitions or dispositions during the three months ended March 31, 2026. No properties were classified as held for sale as of March 31, 2026.
This Quarterly Report on Form 10-Q includes financial measures that are not in accordance with generally accepted accounting principles in the United States (“GAAP”), which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. The Company presents “HPP’s share” of certain of these measures, which are non-GAAP financial measures that are calculated as the measure on a consolidated basis, in accordance with GAAP, plus our Operating Partnership’s share of the measure from our unconsolidated joint ventures (calculated based upon the Operating Partnership’s percentage ownership interest), minus our partners’ share of the measure from our consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). We believe that presenting HPP’s share of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because we have several significant joint ventures, and in some cases, we exercise significant influence over, but do not control, the joint venture. In such instances, GAAP requires us to account for the joint venture entity using the equity method of accounting, which we do not consolidate for financial reporting purposes. In other cases, GAAP requires us to consolidate the venture even though our partner(s) own(s) a significant percentage interest. As a result, management believes that presenting HPP’s share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.
In Process and Future Development Projects
The following table summarizes the properties currently under construction and future development projects as of March 31, 2026:
| Type | Submarket | Estimated Square Feet (Units)(1) | Estimated Completion Date | Estimated Stabilization Date | ||||||||||||||||||||||||||||
| Recently Completed: | ||||||||||||||||||||||||||||||||
| Seattle, Washington | ||||||||||||||||||||||||||||||||
| Washington 1000 | Office | Denny Triangle | 546,000 | Q4 2024 | Q3 2027 | |||||||||||||||||||||||||||
| TOTAL | 546,000 | |||||||||||||||||||||||||||||||
| Future Development Pipeline: | ||||||||||||||||||||||||||||||||
| Los Angeles, California | ||||||||||||||||||||||||||||||||
Sunset Las Palmas Studios—Development(2) | Studio | Hollywood | 617,581 | TBD | TBD | |||||||||||||||||||||||||||
Sunset Gower Studios—Development(2) | Office/Studio | Hollywood | 478,845 | TBD | TBD | |||||||||||||||||||||||||||
Sunset Bronson Studios Lot D—Development(3) | Residential | Hollywood | 19,816 (33 units) | TBD | TBD | |||||||||||||||||||||||||||
| 10900/10950 Washington | Residential | West Los Angeles | 428,623 (508 units) | TBD | TBD | |||||||||||||||||||||||||||
| Vancouver, British Columbia | ||||||||||||||||||||||||||||||||
Burrard Exchange(3) | Office | Downtown Vancouver | 450,000 | TBD | TBD | |||||||||||||||||||||||||||
| Greater London, United Kingdom | ||||||||||||||||||||||||||||||||
Sunset Waltham Cross Studios(4) | Studio | Broxbourne | 1,167,347 | TBD | TBD | |||||||||||||||||||||||||||
| TOTAL | 3,162,212 | |||||||||||||||||||||||||||||||
| TOTAL RECENTLY COMPLETED AND FUTURE DEVELOPMENT | 3,708,212 | |||||||||||||||||||||||||||||||
__________________
1.Estimated square footage represents management’s estimate of leasable square footage, which may be less or more than the Building Owners and Managers Association (BOMA) rentable area. Square footage may change over time due to re-measurement or re-leasing. For land properties, square footage represents management’s estimate of developable square footage, the majority of which remains subject to entitlement approvals not yet obtained.
2.We own 51% of the ownership interests in the consolidated joint venture that owns Sunset Bronson Studios, Sunset Gower Studios and Sunset Las Palmas Studios.
3.We own 20% of the ownership interests in the unconsolidated joint venture that owns Burrard Exchange.
4.We own 35% of the ownership interests in the unconsolidated joint venture that owns Sunset Waltham Cross Studios.
39
Table of Contents
Properties are selected for repositioning when an asset or portions of an asset are taken offline for a change of use or if the asset requires significant base building improvements resulting in substantial down time in occupancy. Studio development properties are incorporated into the in-service portfolio on the earlier of the one year anniversary of completion or the project’s estimated stabilization date. Office development properties are incorporated into the in-service portfolio on the earlier of reaching 92% occupancy or the project’s estimated stabilization date.
The lease up of our recently completed and under construction office and studio developments requires no additional capital investment and provides an opportunity for near-to-mid-term cash flow growth.
The following table summarizes the portions of office and studio projects currently under repositioning as of March 31, 2026:
| Location | Submarket | Square Feet | ||||||||||||
| Repositioning: | ||||||||||||||
| 901 Market | San Francisco | 163,823 | ||||||||||||
| 6040 Sunset | Hollywood | 114,958 | ||||||||||||
| 899 Howard | San Francisco | 96,240 | ||||||||||||
| 1455 Market | San Francisco | 49,272 | ||||||||||||
| Rincon Center | San Francisco | 38,514 | ||||||||||||
| Sunset Las Palmas Studios | Hollywood | 18,594 | ||||||||||||
| Bentall Centre | Downtown Vancouver | 18,559 | ||||||||||||
| Palo Alto Square | Palo Alto | 12,740 | ||||||||||||
| Sunset Gower Studios | Hollywood | 6,650 | ||||||||||||
| TOTAL REPOSITIONING | 519,350 | |||||||||||||
40
Table of Contents
Office Lease Expirations
The following table summarizes the lease expirations for leases in place as of March 31, 2026, plus available space, at the properties in our office portfolio. Unless otherwise stated in the footnotes, the information set forth in the table assumes that tenants did not exercise any renewal options.
| HPP’s Share | |||||||||||||||||||||||
| Year of Lease Expiration | # of Leases Expiring(1) | Square Feet Expiring | Annualized Base Rent(2) | Percent of Office Portfolio Annualized Base Rent | Annualized Base Rent Per Leased Square Foot(2) | Annualized Base Rent at Expiration(2) | Annualized Base Rent Per Lease Square Foot at Expiration(2) | ||||||||||||||||
| Vacant | 3,826,898 | ||||||||||||||||||||||
| Q2-2026 | 25 | 135,275 | 5,699,522 | 1.3 | 55.16 | 5,737,638 | 55.52 | ||||||||||||||||
| Q3-2026 | 45 | 396,577 | 20,330,401 | 4.5 | 58.29 | 20,409,073 | 58.51 | ||||||||||||||||
| Q4-2026 | 22 | 74,443 | 3,394,354 | 0.8 | 51.86 | 3,419,836 | 52.25 | ||||||||||||||||
| Total 2026 | 92 | 606,295 | 29,424,277 | 6.6 | 56.85 | 29,566,547 | 57.13 | ||||||||||||||||
| 2027 | 171 | 1,287,844 | 71,223,438 | 15.9 | 59.03 | 73,110,492 | 60.59 | ||||||||||||||||
| 2028 | 146 | 1,459,502 | 91,771,847 | 20.4 | 72.06 | 95,799,643 | 75.22 | ||||||||||||||||
| 2029 | 110 | 785,086 | 38,223,229 | 8.5 | 64.38 | 41,896,521 | 70.57 | ||||||||||||||||
| 2030 | 79 | 1,558,174 | 60,745,910 | 13.5 | 52.45 | 68,088,335 | 58.79 | ||||||||||||||||
| 2031 | 74 | 1,581,847 | 68,569,677 | 15.3 | 60.43 | 80,117,205 | 70.61 | ||||||||||||||||
| 2032 | 20 | 255,578 | 11,030,420 | 2.5 | 52.37 | 12,194,543 | 57.90 | ||||||||||||||||
| 2033 | 31 | 685,312 | 29,336,422 | 6.5 | 52.55 | 36,083,404 | 64.64 | ||||||||||||||||
| 2034 | 16 | 186,707 | 6,903,795 | 1.5 | 37.62 | 11,536,149 | 62.86 | ||||||||||||||||
| 2035 | 20 | 400,273 | 8,950,429 | 2.0 | 45.68 | 11,184,307 | 57.08 | ||||||||||||||||
| Thereafter | 25 | 796,466 | 30,354,178 | 6.8 | 45.42 | 46,382,876 | 69.40 | ||||||||||||||||
Building management use(3) | 67 | 420,644 | — | — | — | — | — | ||||||||||||||||
| Signed leases not commenced | 19 | 72,859 | 2,355,262 | 0.5 | 49.79 | 2,772,189 | 58.60 | ||||||||||||||||
| Portfolio Total/Weighted Average | 870 | 13,923,485 | $ | 448,888,884 | 100.0 | % | $ | 55.31 | $ | 508,732,211 | $ | 62.68 | |||||||||||
__________________
1.Does not include 33 month-to-month leases.
2.Annualized base rent per square foot for office properties is calculated by multiplying (i) cash base rents under commenced leases excluding tenant reimbursements as of March 31, 2026 by (ii) 12. On a per square foot basis, ABR is divided by square footage under commenced leases as of March 31, 2026. For all expiration years, ABR is calculated as (i) cash base rents at expiration under commenced leases divided by (ii) square footage under commenced leases as of March 31, 2026. The methodology is the same when calculating ABR per square foot either in place or at expiration for uncommenced leases. Rent data is presented without regard to cancellation options. Where applicable, rental rates converted to USD using the foreign currency exchange rate as of March 31, 2026.
3.Reflects management offices occupied by the Company with various expiration dates.
41
Table of Contents
Historical Office Tenant Improvements and Leasing Commissions
The following table summarizes historical information regarding tenant improvement and leasing commission costs for tenants at our office properties:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
Renewals(1) | |||||||||||||||||||||||
| Number of leases | 41 | 27 | |||||||||||||||||||||
| Square feet | 282,654 | 215,180 | |||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 50.49 | $ | 18.61 | |||||||||||||||||||
Leasing commission costs per square foot(2) | 12.75 | 8.28 | |||||||||||||||||||||
Total tenant improvement and leasing commission costs(2) | $ | 63.24 | $ | 26.89 | |||||||||||||||||||
New leases(4) | |||||||||||||||||||||||
| Number of leases | 44 | 35 | |||||||||||||||||||||
| Square feet | 271,367 | 415,115 | |||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 63.64 | $ | 72.95 | |||||||||||||||||||
Leasing commission costs per square foot(2) | 16.31 | 14.37 | |||||||||||||||||||||
Total tenant improvement and leasing commission costs(2) | $ | 79.95 | $ | 87.32 | |||||||||||||||||||
| TOTAL | |||||||||||||||||||||||
| Number of leases | 85 | 62 | |||||||||||||||||||||
| Square feet | 554,021 | 630,295 | |||||||||||||||||||||
Tenant improvement costs per square foot(2)(3) | $ | 56.54 | $ | 55.32 | |||||||||||||||||||
Leasing commission costs per square foot(2) | 14.39 | 12.39 | |||||||||||||||||||||
TOTAL TENANT IMPROVEMENT AND LEASING COMMISSION COSTS(2) | $ | 70.93 | $ | 67.71 | |||||||||||||||||||
__________________
1.Excludes retained tenants that have relocated or expanded into new space within our portfolio.
2.Assumes all tenant improvement costs and leasing commissions are paid in the calendar year in which the lease is executed, which may be different than the year in which they were actually paid.
3.Tenant improvement costs are based on negotiated tenant improvement allowances set forth in leases, or, for any lease in which a tenant improvement allowance was not specified, the aggregate cost originally budgeted at the time the lease commenced.
4.Includes retained tenants that have relocated or expanded into new space within our portfolio.
Financings
During the three months ended March 31, 2026, there were no repayments or borrowings on the unsecured revolving credit facility. The Company generally uses the unsecured revolving credit facility to finance the acquisition of properties and businesses, to provide funds for tenant improvements and capital expenditures and to provide for working capital and other corporate purposes.
Historical Results of Operations
This Quarterly Report on Form 10-Q of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. represents an update to the more detailed and comprehensive disclosures included in the 2025 Annual Report on Form 10-K of Hudson Pacific Properties, Inc. and Hudson Pacific Properties, L.P. Accordingly, you should read the following discussion in conjunction with the information included in our 2025 Annual Report on Form 10-K, as well as the unaudited financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
In addition, some of the statements and assumptions in this Quarterly Report on Form 10-Q are forward-looking statements within the meaning of Section 27A of the Securities Act or Section 21E of the Exchange Act, including, in particular, statements about our plans, strategies and prospects as well as estimates of industry growth for the quarter and beyond. Refer to “Forward-looking Statements.”
42
Table of Contents
All amounts and percentages used in this discussion of our results of operations are calculated using the numbers presented in the financial statements contained in Part I, Item 1 of this Quarterly Report rather than the rounded numbers appearing in this discussion. The dollar amounts included in the tables in this discussion of our results of operations are presented in thousands.
Comparison of the Three Months Ended March 31, 2026 to the Three Months Ended March 31, 2025
Net Loss
Net loss decreased $29.4 million, or 36.6%, to $50.9 million for the three months ended March 31, 2026 compared to $80.3 million for the three months ended March 31, 2025. The reasons for the change are discussed below with respect to the decrease in net operating income during the three months ended March 31, 2026, offset by the decrease in depreciation and amortization, general and administrative expenses and the change in other income and expenses.
Net Operating Income
We evaluate performance based upon net operating income (“NOI”). NOI is not a measure of operating results or cash flows from operating activities or cash flows as measured by GAAP and should not be considered an alternative to net income, as an indication of our performance, or as an alternative to cash flows as a measure of liquidity, or our ability to make distributions. All companies may not calculate NOI in the same manner. We consider NOI to be a useful performance measure to investors and management because when compared across periods, NOI reflects the revenues and expenses directly associated with owning and operating our properties and the impact to operations from trends in occupancy rates, rental rates and operating costs, providing a perspective not immediately apparent from net income. We calculate NOI as net income (loss) excluding corporate general and administrative expenses, depreciation and amortization, impairments, gains/losses on sales of real estate, interest expense, interest income, transaction-related expenses and other non-operating items. We define NOI as operating revenues (including rental revenues, other property-related revenue, tenant recoveries and other operating revenues), less property-level operating expenses (which includes external management fees, if any, and property-level general and administrative expenses). NOI on a cash basis is NOI adjusted to exclude the effect of straight-line rent and other non-cash adjustments required by GAAP. We believe that NOI on a cash basis is helpful to investors as an additional measure of operating performance because it eliminates straight-line rent and other non-cash adjustments to revenue and expenses.
Management further analyzes NOI by evaluating the performance from the following groups:
•Same-store properties, which include all of the properties owned and included in our stabilized portfolio as of January 1, 2025 and still owned and included in the stabilized portfolio as of March 31, 2026; and
•Non-same-store, which includes:
•Stabilized non-same-store properties
•Lease-up properties
•Repositioning properties
•Development properties
•Redevelopment properties
•Held for sale properties
•Operating results from studio service-related businesses
43
Table of Contents
The following table reconciles net loss to NOI (in thousands, except percentage change):
| Three Months Ended March 31, | Dollar Change | Percentage Change | ||||||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||||||||
| NET LOSS | $ | (50,904) | $ | (80,278) | $ | 29,374 | (36.6) | % | ||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Loss from unconsolidated real estate entities | 437 | 1,254 | (817) | (65.2) | ||||||||||||||||||||||
| Fee income | (1,107) | (1,359) | 252 | (18.5) | ||||||||||||||||||||||
| Interest expense | 37,994 | 43,505 | (5,511) | (12.7) | ||||||||||||||||||||||
| Interest income | (1,649) | (435) | (1,214) | 279.1 | ||||||||||||||||||||||
| Management services reimbursement income—unconsolidated real estate entities | (1,124) | (975) | (149) | 15.3 | ||||||||||||||||||||||
| Management services expense—unconsolidated real estate entities | 1,124 | 975 | 149 | 15.3 | ||||||||||||||||||||||
| Transaction-related expenses | 101 | — | 101 | — | ||||||||||||||||||||||
| Unrealized loss on non-real estate investments | 1,962 | 449 | 1,513 | 337.0 | ||||||||||||||||||||||
| Gain on sale of real estate, net | — | (10,023) | 10,023 | (100.0) | ||||||||||||||||||||||
| Impairment loss | — | 18,476 | (18,476) | (100.0) | ||||||||||||||||||||||
| Loss on extinguishment of debt | — | 1,858 | (1,858) | (100.0) | ||||||||||||||||||||||
| Other income | (158) | (8) | (150) | 1,875.0 | ||||||||||||||||||||||
| Income tax provision | 348 | 194 | 154 | 79.4 | ||||||||||||||||||||||
| General and administrative | 12,575 | 18,483 | (5,908) | (32.0) | ||||||||||||||||||||||
| Depreciation and amortization | 80,722 | 93,085 | (12,363) | (13.3) | ||||||||||||||||||||||
| NOI | $ | 80,321 | $ | 85,201 | $ | (4,880) | (5.7) | % | ||||||||||||||||||
| Same-store NOI | $ | 87,345 | $ | 91,840 | $ | (4,495) | (4.9) | % | ||||||||||||||||||
| Non-same-store NOI | (7,024) | (6,639) | (385) | 5.8 | ||||||||||||||||||||||
| NOI | $ | 80,321 | $ | 85,201 | $ | (4,880) | (5.7) | % | ||||||||||||||||||
The following table summarizes certain statistics of our consolidated same-store office and studio properties:
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Same-store office | |||||||||||
| Number of properties | 37 | 37 | |||||||||
| Rentable square feet | 11,372,298 | 11,470,493 | |||||||||
| Ending % leased | 76.2 | % | 74.5 | % | |||||||
| Ending % occupied | 75.9 | % | 73.2 | % | |||||||
| Average % occupied for the period | 75.1 | % | 72.8 | % | |||||||
| Average annual rental rate per square foot | $ | 57.22 | $ | 58.36 | |||||||
| Same-store studio | |||||||||||
| Number of properties | 3 | 3 | |||||||||
| Rentable square feet | 1,204,666 | 1,204,666 | |||||||||
Average % leased for the period(1) | 84.5 | % | 73.9 | % | |||||||
__________________
1.Percent leased for same-store studio is the average percent leased for the 12 months ended.
44
Table of Contents
The following table gives further detail on our NOI (in thousands):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Same-store | Non-same-store | Total | Same-store | Non-same-store | Total | ||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Office | |||||||||||||||||||||||
| Rental revenues | $ | 145,167 | $ | 61 | $ | 145,228 | $ | 148,709 | $ | 9,684 | $ | 158,393 | |||||||||||
| Service and other revenues | 3,451 | (5) | 3,446 | 4,913 | 1,905 | 6,818 | |||||||||||||||||
| Total office revenues | 148,618 | 56 | 148,674 | 153,622 | 11,589 | 165,211 | |||||||||||||||||
| Studio | |||||||||||||||||||||||
| Rental revenues | 11,095 | 2,702 | 13,797 | 10,377 | 3,275 | 13,652 | |||||||||||||||||
| Service and other revenues | 8,514 | 10,867 | 19,381 | 6,622 | 12,974 | 19,596 | |||||||||||||||||
| Total studio revenues | 19,609 | 13,569 | 33,178 | 16,999 | 16,249 | 33,248 | |||||||||||||||||
| Total revenues | 168,227 | 13,625 | 181,852 | 170,621 | 27,838 | 198,459 | |||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Office operating expenses | 68,706 | 1,116 | 69,822 | 67,787 | 4,490 | 72,277 | |||||||||||||||||
| Studio operating expenses | 12,176 | 19,533 | 31,709 | 10,994 | 29,987 | 40,981 | |||||||||||||||||
| Total operating expenses | 80,882 | 20,649 | 101,531 | 78,781 | 34,477 | 113,258 | |||||||||||||||||
| Office NOI | 79,912 | (1,060) | 78,852 | 85,835 | 7,099 | 92,934 | |||||||||||||||||
| Studio NOI | 7,433 | (5,964) | 1,469 | 6,005 | (13,738) | (7,733) | |||||||||||||||||
| NOI | $ | 87,345 | $ | (7,024) | $ | 80,321 | $ | 91,840 | $ | (6,639) | $ | 85,201 | |||||||||||
45
Table of Contents
The following table gives further detail on our change in NOI (in thousands, except percentage change):
Three Months Ended March 31, 2026 as compared to Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||
| Same-store | Non-same-store | Total | ||||||||||||||||||||||||
| Dollar change | Percentage change | Dollar change | Percentage change | Dollar change | Percentage change | |||||||||||||||||||||
| REVENUES | ||||||||||||||||||||||||||
| Office | ||||||||||||||||||||||||||
| Rental revenues | $ | (3,542) | (2.4) | % | $ | (9,623) | (99.4) | % | $ | (13,165) | (8.3) | % | ||||||||||||||
| Service and other revenues | (1,462) | (29.8) | (1,910) | (100.3) | (3,372) | (49.5) | ||||||||||||||||||||
| Total office revenues | (5,004) | (3.3) | (11,533) | (99.5) | (16,537) | (10.0) | ||||||||||||||||||||
| Studio | ||||||||||||||||||||||||||
| Rental revenues | 718 | 6.9 | (573) | (17.5) | 145 | 1.1 | ||||||||||||||||||||
| Service and other revenues | 1,892 | 28.6 | (2,107) | (16.2) | (215) | (1.1) | ||||||||||||||||||||
| Total studio revenues | 2,610 | 15.4 | (2,680) | (16.5) | (70) | (0.2) | ||||||||||||||||||||
| Total revenues | (2,394) | (1.4) | (14,213) | (51.1) | (16,607) | (8.4) | ||||||||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||||||||||
| Office operating expenses | 919 | 1.4 | (3,374) | (75.1) | (2,455) | (3.4) | ||||||||||||||||||||
| Studio operating expenses | 1,182 | 10.8 | (10,454) | (34.9) | (9,272) | (22.6) | ||||||||||||||||||||
| Total operating expenses | 2,101 | 2.7 | (13,828) | (40.1) | (11,727) | (10.4) | ||||||||||||||||||||
| Office NOI | (5,923) | (6.9) | (8,159) | (114.9) | (14,082) | (15.2) | ||||||||||||||||||||
| Studio NOI | 1,428 | 23.8 | 7,774 | (56.6) | 9,202 | (119.0) | ||||||||||||||||||||
| NOI | $ | (4,495) | (4.9) | % | $ | (385) | 5.8 | % | $ | (4,880) | (5.7) | % | ||||||||||||||
NOI decreased $4.9 million, or 5.7%, for the three months ended March 31, 2026 as compared to the three months ended March 31, 2025, primarily resulting from:
•a $4.5 million decrease in same-store NOI driven by:
•a decrease in office NOI of $5.9 million primarily due to:
•a $3.5 million decrease in rental revenues driven by the 2025 lease terminations and downsizes at our 1455 Market, Hill7, and Concourse properties; and
•a $1.5 million decrease in service and other revenues due to a tenant move out at our Shorebreeze property in 2025; partially offset by
•a $0.9 million increase in office operating expenses primarily due to higher ground lease expense at our Palo Alto Square property and higher engineering, cleaning, security and owner’s expenses at various properties, partially offset by capitalization of expenses at our 901 Market property that is undergoing repositioning, as well as a prior year property tax refund received at our Skyport Plaza property during the first quarter of 2026;
•further offset by an increase in studio NOI of $1.4 million driven by higher production activity at our Sunset Gower Studios and Sunset Las Palmas Studios properties during the first quarter of 2026;
•a $0.4 million decrease in non-same-store NOI driven by:
•a decrease in office NOI of $8.2 million primarily resulting from the sales of our Element LA and Foothill Research Center properties in 2025 and increased operating expenses at Washington 1000 that became operational during the first quarter of 2026, partially offset by a reduction of expenses due to the sale of 625 Second in 2025; further offset by
•an increase in studio NOI of $7.8 million mainly due to cost savings initiatives at Quixote.
46
Table of Contents
Other (Expenses) Income
Loss from unconsolidated real estate entities
We recorded a $0.4 million loss from unconsolidated real estate entities for the three months ended March 31, 2026 compared to a loss of $1.3 million for the three months ended March 31, 2025. The change was primarily driven by mark-to-market adjustments for an interest rate swap that does not qualify for hedge accounting.
Fee income
We recognized fee income of $1.1 million for the three months ended March 31, 2026 compared to $1.4 million for the three months ended March 31, 2025. Fee income represents the management fee income earned from our unconsolidated real estate entities.
Interest expense
The following table presents a reconciliation from gross interest expense to the interest expense line item on the Consolidated Statements of Operations:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Dollar Change | Percentage Change | ||||||||||||||||||||
Gross interest expense(1) | $ | 42,185 | $ | 49,127 | $ | (6,942) | (14.1) | % | |||||||||||||||
| Capitalized interest | (5,683) | (10,080) | 4,397 | (43.6) | |||||||||||||||||||
Non-cash interest expense(2) | 1,492 | 4,458 | (2,966) | (66.5) | |||||||||||||||||||
| TOTAL | $ | 37,994 | $ | 43,505 | $ | (5,511) | (12.7) | % | |||||||||||||||
_________________
1.Includes interest on the Company’s debt and hedging activities.
2.Includes the amortization of deferred financing costs and fair market value adjustments for our mark-to-market interest rate derivatives.
Gross interest expense decreased by $6.9 million or 14.1%, to $42.2 million for the three months ended March 31, 2026 compared to $49.1 million for the three months ended March 31, 2025. The decrease was primarily related to a lower outstanding balance on the unsecured line of credit and lower reference rates on our floating rate debt during the first quarter of 2026, as well as the 2025 repayments of the Element LA loan and Series B, C and D notes. The decrease was partially offset by the interest expense related to the Office Portfolio CMBS loan, which was obtained in March 2025.
Capitalized interest decreased by $4.4 million or 43.6%, to $5.7 million for the three months ended March 31, 2026 compared to $10.1 million for the three months ended March 31, 2025 primarily due to Washington 1000 becoming operational in 2026 and completion of Sunset Glenoaks Studios development in 2025. The decrease was partially offset by an increase in development activity at our 6040 Sunset property.
Non-cash interest expense decreased by $3.0 million, or 66.5%, to $1.5 million for the three months ended March 31, 2026 compared to $4.5 million for the three months ended March 31, 2025. The decrease was primarily related to changes in the fair value of our derivative instruments.
Interest income
Interest income increased by $1.2 million, or 279.1%, to $1.6 million for the three months ended March 31, 2026 compared to $0.4 million for the three months ended March 31, 2025. The change was driven by an increase in cash deposits in interest-bearing accounts and interest earned on a refundable payroll tax credit.
Unrealized loss on non-real estate investments
We recognized an unrealized loss on non-real estate investments of $2.0 million for the three months ended March 31, 2026 compared to an unrealized loss of $0.4 million for the three months ended March 31, 2025, which were due to the observable changes in the fair value of the investments.
47
Table of Contents
Gain on sale of real estate, net
During the three months ended March 31, 2025, we recognized a net gain on sale of $10.0 million attributable to the sales of our Foothill Research and Maxwell properties. No gain or loss on sale was recognized during the three months ended March 31, 2026.
Impairment loss
During the three months ended March 31, 2025, we recorded an impairment loss of $18.5 million due to a reduction in the estimated holding period for our 625 Second property. We did not record any impairment charges during the three months ended March 31, 2026.
Loss on extinguishment of debt
During the three months ended March 31, 2025, we recognized a loss on extinguishment of debt of $1.9 million related to repaying the loan secured by our Element LA property. No gain or loss on extinguishment of debt was recognized during the three months ended March 31, 2026.
General and administrative expenses
General and administrative expenses decreased by $5.9 million, or 32.0%, to $12.6 million for the three months ended March 31, 2026 compared to $18.5 million for the three months ended March 31, 2025. The decrease was primarily due to a reduction in payroll, bonus, stock-based compensation expense and professional fees during the three months ended March 31, 2026.
Depreciation and amortization expense
Depreciation and amortization expense decreased by $12.4 million, or 13.3%, to $80.7 million for the three months ended March 31, 2026 compared to $93.1 million for the three months ended March 31, 2025. The decrease was primarily driven by Quixote impairment adjustment during the fourth quarter of 2025, resulting in a lower depreciable basis, and the accelerated depreciation of tenant improvements related to early lease terminations at our 6040 Sunset and Hill 7 properties in 2025 with no comparable activity in 2026. The decrease was partially offset due to commencement of depreciation and amortization on Washington 1000, which became operational in 2026.
Liquidity and Capital Resources
We have remained capitalized since our initial public offering through public offerings, private placements, joint ventures and continuous offerings under our at-the-market (“ATM”) program. We currently expect that our principal sources of funds to meet our short-term and long-term liquidity requirements for working capital, strategic acquisitions, capital expenditures, tenant improvements, leasing costs, dividends and distributions, share repurchases and repayments of outstanding debt financing will include:
•cash on hand, cash reserves and net cash provided by operations;
•strategic dispositions of real estate;
•sales of non-real estate investments;
•proceeds from additional equity securities;
•our ATM program;
•borrowings under the operating partnership’s unsecured revolving credit facility;
•proceeds from joint venture partners;
•proceeds from the Sunset Pier 94 Studios construction loan (unconsolidated joint venture); and
•proceeds from additional secured, unsecured debt financings or offerings.
Liquidity Sources
We had approximately $138.0 million of cash and cash equivalents at March 31, 2026. Our principal source of operating cash flow is related to leasing and operating the properties in our portfolio. Our properties provide a relatively consistent stream of cash flow that provides us with resources to pay operating expenses, debt service and fund quarterly dividend and distribution requirements.
Our ability to access the equity capital markets will be dependent on a number of factors as well, including general market conditions for REITs and market perceptions about us.
48
Table of Contents
We have an ATM program that allows us to sell up to $125.0 million of common stock, $65.8 million of which has been sold through March 31, 2026. Any future sales will depend on several factors, including, but not limited to, market conditions, the trading price of our common stock and our capital needs. We have no obligation to sell the remaining shares available for sale under this program.
The following table sets forth our borrowing capacity under various loans as of March 31, 2026 (in thousands):
| Loan | Total Borrowing Capacity | Amount Drawn | Remaining Borrowing Capacity | |||||||||||||||||
Unsecured revolving credit facility | $ | 795,250 | $ | — | $ | 795,250 | ||||||||||||||
Sunset Glenoaks Studios construction loan(1)(2)(3) | 52,092 | 52,092 | — | |||||||||||||||||
Bentall Centre(1)(2)(4) | 94,813 | 94,813 | — | |||||||||||||||||
Sunset Pier 94 Studios construction loan(1)(2) | 46,810 | 39,819 | 6,991 | |||||||||||||||||
| TOTAL | $ | 988,965 | $ | 186,724 | $ | 802,241 | ||||||||||||||
__________________
1.Amounts are presented at HPP’s share.
2.This loan is held by an unconsolidated joint venture.
3.Total borrowing capacity includes an original borrowing capacity of $50.3 million and accrued payment-in-kind interest of $1.8 million as of March 31, 2026 (amounts at HPP’s share).
4.The loan was transacted in Canadian dollars. Amounts are shown in U.S. dollars using the foreign currency exchange rate as of March 31, 2026.
Our ability to incur additional debt will be dependent on a number of factors, including our degree of leverage, the value of our unencumbered assets and borrowing restrictions that may be imposed by lenders. If we incur additional debt, the risks associated with our leverage, including our ability to service our debt, would increase. As of March 31, 2026, the credit ratings for our senior unsecured debt were B2, B and B+ from Moody’s, Standard and Poor’s and Fitch, respectively.
The following table sets forth our ratio of debt to total market capitalization (counting Series A redeemable preferred units as debt) as of March 31, 2026 (in thousands, except percentage):
| Market Capitalization | ||||||||
Unsecured and secured debt(1) | $ | 3,365,350 | ||||||
Series A redeemable preferred units | 2,795 | |||||||
| Total consolidated debt | 3,368,145 | |||||||
Equity capitalization(2) | 817,951 | |||||||
| TOTAL CONSOLIDATED MARKET CAPITALIZATION | $ | 4,186,096 | ||||||
| Total consolidated debt/total consolidated market capitalization | 80.5 | % | ||||||
__________________
1.Excludes joint venture partner debt and unamortized deferred financing costs and loan discounts/premiums.
2.Equity capitalization represents the shares of common stock outstanding (including unvested restricted shares), pre-funded warrants, OP and LTIP units outstanding, restricted performance units and dilutive shares multiplied by the closing price of $5.91, as reported by the NYSE, on March 31, 2026, as well as the aggregate value of the Series C preferred stock liquidation preference as of March 31, 2026.
Outstanding Indebtedness
The following table sets forth information as of March 31, 2026 and December 31, 2025 with respect to our outstanding indebtedness, excluding unamortized deferred financing costs and loan discounts/premiums (in thousands):
| March 31, 2026 | December 31, 2025 | ||||||||||
| Unsecured debt | $ | 1,650,000 | $ | 1,650,000 | |||||||
| Secured debt | $ | 1,715,350 | $ | 1,717,850 | |||||||
| Joint venture partner debt | $ | 66,136 | $ | 66,136 | |||||||
The operating partnership was in compliance with its financial covenants as of March 31, 2026.
49
Table of Contents
Liquidity Uses
Contractual Obligations
During the three months ended March 31, 2026, there were no material changes outside the ordinary course of business in the information regarding specified contractual obligations contained in our 2025 Annual Report on Form 10-K. Refer to Part I, Item 1 “Note 9 to the Consolidated Financial Statements—Debt” for information regarding our future minimum principal payments due on our outstanding debt. Refer to Part I, Item 1 “Note 12 to the Consolidated Financial Statements—Future Minimum Rents and Lease Payments” for information regarding our future minimum operating lease payments. Refer to Part I, Item 1 “Note 20 to the Consolidated Financial Statements—Commitments and Contingencies” for more detail.
Cash Flows
Comparison of the cash flow activity for the three months ended March 31, 2026 to the three months ended March 31, 2025 is as follows (in thousands, except percentage change):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Dollar Change | Percentage Change | ||||||||||||||||||||
Net cash provided by operating activities | $ | 44,292 | $ | 30,536 | $ | 13,756 | 45.0 | % | |||||||||||||||
| Net cash (used in) provided by investing activities | $ | (34,314) | $ | 15,945 | $ | (50,259) | (315.2) | % | |||||||||||||||
| Net cash used in financing activities | $ | (9,666) | $ | (11,732) | $ | 2,066 | (17.6) | % | |||||||||||||||
Cash and cash equivalents and restricted cash were $162.4 million and $162.1 million as of March 31, 2026 and December 31, 2025, respectively.
Operating Activities
Net cash provided by operating activities increased by $13.8 million, or 45.0%, to $44.3 million for the three months ended March 31, 2026 compared to $30.5 million for the three months ended March 31, 2025. The increase primarily resulted from favorable working capital movements during the three months ended March 31, 2026, including the timing of cash receipts and payments, which more than offset a reduction in net operating income during the same period as compared to the three months ended March 31, 2025, mainly driven by the 2025 tenant move-outs and asset sales.
Investing Activities
Net cash used in investing activities increased by $50.3 million, or 315.2%, to $34.3 million for the three months ended March 31, 2026 compared to $15.9 million of cash provided by investing activities for the three months ended March 31, 2025. The decrease primarily resulted from a $63.2 million decrease in proceeds from sales of real estate partially offset by a $12.7 million decrease in additions to investment in real estate during the three months ended March 31, 2026.
Financing Activities
Net cash used in financing activities decreased by $2.1 million, or 17.6%, to $9.7 million for the three months ended March 31, 2026 compared to $11.7 million for the three months ended March 31, 2025. The decrease primarily resulted from a $494.0 million decrease in proceeds from unsecured and secured debt, largely offset by a $482.2 million decrease in payments of unsecured and secured debt during the three months ended March 31, 2025. The change was further offset by the $12.1 million payment of loan costs, net of loan premium during the three months ended March 31, 2025 that did not recur during the three months ended March 31, 2026.
50
Table of Contents
Off-Balance Sheet Arrangements
Unconsolidated Joint Venture Indebtedness
We have investments in unconsolidated real estate entities accounted for using the equity method of accounting. The following table provides information about our unconsolidated joint venture indebtedness as of March 31, 2026 (in thousands, except for percentages):
| Ownership Interest | Amount Drawn | Undrawn Capacity | Total Capacity | Interest Rate | Contractual Maturity Date | ||||||||||||||||||||||||||||||
Bentall Centre(1) | 20 | % | $ | 474,067 | $ | — | $ | 474,067 | CORRA + 2.30% | 7/1/2027 | |||||||||||||||||||||||||
Sunset Glenoaks Studios(2)(3) | 50 | % | $ | 104,183 | $ | — | $ | 104,183 | SOFR + 3.10% | 1/9/2027 | |||||||||||||||||||||||||
Sunset Pier 94 Studios(4) | 26 | % | $ | 155,841 | $ | 27,359 | $ | 183,200 | SOFR + 4.75% | 9/9/2028 | |||||||||||||||||||||||||
__________________
(1)The loan was transacted in Canadian dollars. Amounts are shown in U.S. dollars using the foreign currency exchange rate as of March 31, 2026. This loan is interest-only through its term.
(2)This loan has an initial interest rate of SOFR + 3.10% per annum until certain performance targets have been met, at which time the effective interest rate will decrease to SOFR + 2.50%. This loan is interest-only through its term. The maturity date includes the effect of extension options.
(3)Amount drawn includes principal of $100.6 million and accrued payment-in-kind interest of $3.6 million as of March 31, 2026.
(4)This loan has an initial interest rate of SOFR + 4.75% per annum until stabilization of the project, at which time the effective interest rate will decrease to SOFR + 4.00%. This loan is interest-only through its term. The maturity date includes the effect of extension options.
Critical Accounting Policies
Our discussion and analysis of our historical financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of our financial statements in conformity with GAAP requires us to make estimates of certain items and judgments as to certain future events, for example with respect to the assignment of the purchase price of an acquired property among land, buildings, improvements, equipment and any related intangible assets and liabilities, or the effect of a property tax reassessment of our properties. These determinations, even though inherently subjective and prone to change, affect the reported amounts of our assets, liabilities, revenues and expenses. While we believe that our estimates are based on reasonable assumptions and judgments at the time they are made, some of our assumptions, estimates and judgments will inevitably prove to be incorrect. As a result, actual outcomes will likely differ from our accruals and those differences—positive or negative—could be material. Some of our accruals are subject to adjustment, as we believe appropriate, based on revised estimates and reconciliation to the actual results when available.
Refer to Part I, Item 1 “Note 2 to the Consolidated Financial Statements—Summary of Significant Accounting Policies,” for information regarding our critical accounting policies.
Non-GAAP Supplemental Financial Measure: Funds From Operations
We calculate FFO in accordance with the White Paper issued in December 2018 on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”). The White Paper defines FFO as net income or loss calculated in accordance with GAAP, excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs and depreciation of non-real estate assets) and after adjustment for unconsolidated partnerships and joint ventures. The calculation of FFO includes the amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets. In the December 2018 White Paper, NAREIT provided an option to include value changes in mark-to-market equity securities in the calculation of FFO. We elected this option retroactively during the fourth quarter of 2018.
We believe that FFO is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.
Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO
51
Table of Contents
along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.
However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.
The following table presents a reconciliation of net loss to FFO (in thousands):
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
| Net loss | $ | (50,904) | $ | (80,278) | |||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Depreciation and amortization—consolidated | 80,722 | 93,085 | |||||||||||||||||||||
| Depreciation and amortization—non-real estate assets | (3,441) | (9,649) | |||||||||||||||||||||
| Depreciation and amortization—HPP’s share from unconsolidated real estate entities | 1,476 | 1,045 | |||||||||||||||||||||
| Gain on sale of real estate, net | — | (10,023) | |||||||||||||||||||||
| Impairment loss—real estate assets | — | 18,476 | |||||||||||||||||||||
| Unrealized loss on non-real estate investments | 1,962 | 449 | |||||||||||||||||||||
| FFO attributable to non-controlling interests | (6,714) | (4,854) | |||||||||||||||||||||
| FFO attributable to preferred shares and units | (5,091) | (5,193) | |||||||||||||||||||||
| FFO TO COMMON STOCK/UNIT HOLDERS | $ | 18,010 | $ | 3,058 | |||||||||||||||||||
52
Table of Contents
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information about our market risk is disclosed in Part II, Item 7A, of our 2025 Annual Report on Form 10-K and is incorporated herein by reference. There have been no material changes for the three months ended March 31, 2026 to the information provided in Part II, Item 7A, of our 2025 Annual Report on Form 10-K.
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures (Hudson Pacific Properties, Inc.)
Hudson Pacific Properties, Inc. maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Hudson Pacific Properties, Inc.’s reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
As required by Rule 13a-15(b) under the Exchange Act, Hudson Pacific Properties, Inc. carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report.
Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded, as of that time, that Hudson Pacific Properties, Inc.’s disclosure controls and procedures were effective in providing a reasonable level of assurance that information Hudson Pacific Properties, Inc. is required to disclose in reports that Hudson Pacific Properties, Inc. files under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.
Disclosure Controls and Procedures (Hudson Pacific Properties, L.P.)
Hudson Pacific Properties, L.P. maintains disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Hudson Pacific Properties, L.P.’s reports under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
As required by Rule 13a-15(b) under the Exchange Act, Hudson Pacific Properties, L.P. carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), of the effectiveness of the design and operation of the disclosure controls and procedures as of the end of the period covered by this report.
Based on the foregoing, the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.) concluded, as of that time, that Hudson Pacific Properties, L.P.’s disclosure controls and procedures were effective in providing a reasonable level of assurance that information Hudson Pacific Properties, L.P. is required to disclose in reports that Hudson Pacific Properties, L.P. files under the Exchange Act is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of Hudson Pacific Properties, Inc. (the sole general partner of Hudson Pacific Properties, L.P.), as appropriate, to allow for timely decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, Inc.)
There have been no changes that occurred during the first quarter of the year covered by this report in Hudson Pacific Properties, Inc.’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
53
Table of Contents
Changes in Internal Control Over Financial Reporting (Hudson Pacific Properties, L.P.)
There have been no changes that occurred during the first quarter of the year covered by this report in Hudson Pacific Properties, L.P.’s internal control over financial reporting identified in connection with the evaluation referenced above that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
54
Table of Contents
PART II—OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we are a party to various lawsuits, claims and other legal proceedings arising out of, or incident to, our ordinary course of business. We are not currently a party, as plaintiff or defendant, to any legal proceedings that we believe to be material or that, individually or in the aggregate, would be expected to have a material adverse effect on our business, financial condition, results of operations or cash flows if determined adversely to us.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors included in the section entitled “Risk Factors” in our 2025 Annual Report on Form 10-K. Please review the Risk Factors set forth in our 2025 Annual Report on Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
(a) Recent Sales of Unregistered Securities:
During the first quarter of 2026, our operating partnership issued partnership units in private placements in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act, in the amounts and for the consideration set forth below:
During the first quarter of 2026, we issued an aggregate of 20,354 shares of our common stock in connection with the vesting of restricted stock awards for no cash consideration, out of which 5,426 shares of common stock were forfeited to us in connection with tax withholding obligations. For each share of common stock issued by us in connection with such an award, our operating partnership issued a restricted common unit to us as provided in our operating partnership’s Agreement of Limited Partnership. During the first quarter of 2026, our operating partnership issued an aggregate of 14,928 units to us in connection with these transactions.
All other issuances of unregistered equity securities of our operating partnership during the three months ended March 31, 2026 have previously been disclosed in filings with the SEC. For all issuances of units to us, our operating partnership relied on our status as a publicly traded NYSE-listed company with $7.2 billion in total consolidated assets and as our operating partnership’s majority owner and sole general partner as the basis for the exemption under Section 4(a)(2) of the Securities Act.
(b) Use of Proceeds from Registered Securities: None.
(c) Purchases of Equity Securities by the Issuer and Affiliated Purchasers: None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
None.
ITEM 5. OTHER INFORMATION
During the three months ended March 31, 2026, none of our officers or directors adopted terminated
55
Table of Contents
ITEM 6. EXHIBITS
| Incorporated by Reference | ||||||||||||||||||||||||||||||||
| Exhibit No. | Description | Form | File No. | Exhibit No. | Filing Date | |||||||||||||||||||||||||||
| 3.1 | Articles of Amendment and Restatement of Hudson Pacific Properties, Inc. | S-11/A | 333-164916 | 3.1 | May 12, 2010 | |||||||||||||||||||||||||||
| 3.2 | Articles of Amendment. | 8-K | 001-34789 | 3.1 | June 13, 2025 | |||||||||||||||||||||||||||
| 3.3 | Certificate of Amendment to Certificate of Incorporation (Reverse Stock Split). | 8-K | 001-34789 | 3.1 | December 1, 2025 | |||||||||||||||||||||||||||
| 3.4 | Certificate of Amendment to Certificate of Incorporation (Par Value Adjustment). | 8-K | 001-34789 | 3.2 | December 1, 2025 | |||||||||||||||||||||||||||
| 3.5 | Certificate of Amendment to Certificate of Incorporation (Reduction in Authorized Shares). | 8-K | 001-34789 | 3.3 | December 1, 2025 | |||||||||||||||||||||||||||
| 3.6 | Second Amended and Restated Bylaws of Hudson Pacific Properties, Inc. | 8-K | 001-34789 | 3.1 | January 12, 2015 | |||||||||||||||||||||||||||
| 3.7 | First Amendment to the Second Amended and Restated Bylaws of Hudson Pacific Properties, Inc. | 8-K | 001-34789 | 3.1 | March 22, 2022 | |||||||||||||||||||||||||||
| 3.8 | Sixth Amended and Restated Agreement of Limited Partnership of Hudson Pacific Properties, L.P. | 8-K | 001-34789 | 3.4 | December 1, 2025 | |||||||||||||||||||||||||||
| 3.9 | Certificate of Limited Partnership of Hudson Pacific Properties, L.P. | 10-Q | 001-34789 | 3.4 | November 4, 2016 | |||||||||||||||||||||||||||
| 31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.+ | |||||||||||||||||||||||||||||||
| 31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.+ | |||||||||||||||||||||||||||||||
| 31.3 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, L.P.+ | |||||||||||||||||||||||||||||||
| 31.4 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, L.P.+ | |||||||||||||||||||||||||||||||
| 32.1 | Certifications by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, Inc.+ | |||||||||||||||||||||||||||||||
| 32.2 | Certifications by Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 for Hudson Pacific Properties, L.P.+ | |||||||||||||||||||||||||||||||
| 101 | The following financial information from Hudson Pacific Properties, Inc.’s and Hudson Pacific Properties, L.P.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Consolidated Balance Sheets (unaudited), (ii) Consolidated Statements of Operations (unaudited), (iii) Consolidated Statements of Comprehensive Loss (unaudited), (iv) Consolidated Statements of Equity (unaudited), (v) Consolidated Statements of Capital (unaudited), (vi) Consolidated Statements of Cash Flows (unaudited) and (vii) Notes to Unaudited Consolidated Financial Statements* | |||||||||||||||||||||||||||||||
| 104 | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) | |||||||||||||||||||||||||||||||
__________________
| * | Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. | |||||||||||||||||||||||||||||||
| ** | Denotes a management contract or compensatory plan or arrangement. | |||||||||||||||||||||||||||||||
| + | Filed herewith. | |||||||||||||||||||||||||||||||
56
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
| Date: | May 8, 2026 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) | |||||||||||
| HUDSON PACIFIC PROPERTIES, INC. | |||||||||||
| Date: | May 8, 2026 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer (Principal Financial Officer) | |||||||||||
57
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
| Date: | May 8, 2026 | /s/ VICTOR J. COLEMAN | |||||||||
Victor J. Coleman Chief Executive Officer (Principal Executive Officer) | |||||||||||
| HUDSON PACIFIC PROPERTIES, L.P. | |||||||||||
| Date: | May 8, 2026 | /s/ HAROUT K. DIRAMERIAN | |||||||||
Harout K. Diramerian Chief Financial Officer (Principal Financial Officer) | |||||||||||
58
FAQ
How did Hudson Pacific Properties (HPP) perform financially in Q1 2026?
Hudson Pacific posted a Q1 2026 net loss of $50.9 million, an improvement from a $80.3 million loss in Q1 2025. Revenue was $181.9 million versus $198.5 million a year earlier, as office revenues declined while studio-related revenues were broadly stable.
What was Hudson Pacific Properties’ Q1 2026 EPS after the reverse stock split?
In Q1 2026, net loss attributable to common stockholders was $(0.82) per diluted share, compared with $(3.70) per share in Q1 2025. These figures reflect the one-for-seven reverse stock and unit splits implemented in December 2025 and applied retroactively.
How much revenue did Hudson Pacific (HPP) generate from office and studio properties in Q1 2026?
Total revenues were $181.9 million in Q1 2026, including $148.7 million of office revenue and $33.2 million of studio revenue. Office revenue fell from $165.2 million a year earlier, while studio revenue was essentially flat versus $33.2 million in Q1 2025.
What was Hudson Pacific Properties’ cash flow from operations in Q1 2026?
Net cash provided by operating activities was $44.3 million in Q1 2026, up from $30.5 million in Q1 2025. The increase reflected non-cash adjustments such as depreciation and working capital changes, despite the continuing consolidated net loss for the quarter.
How leveraged is Hudson Pacific Properties as of March 31, 2026?
As of March 31, 2026, total unsecured and secured debt was $3.37 billion, with fair value slightly below carrying value. Covenant ratios under the unsecured facilities and senior notes showed debt-to-asset levels below specified caps and interest coverage above required minimums.
What does Hudson Pacific Properties’ real estate portfolio look like in early 2026?
As of March 31, 2026, Hudson Pacific controlled 52 properties totaling about 18.8 million square feet. The consolidated portfolio included 40 office properties and 3 studio properties, plus future development sites, with additional office and studio assets held in unconsolidated joint ventures.
Did Hudson Pacific record any real estate acquisitions, sales, or impairments in Q1 2026?
No real estate acquisitions, dispositions, or impairment charges were recorded in Q1 2026. By contrast, Q1 2025 included $18.4 million of impairment on an office property and gains and losses on property sales, which affected prior-year earnings comparability.