Hudson Pacific Properties shares rose 3.0% following a quarter that showed sequential occupancy gains and solid leasing momentum, particularly in tech-driven West Coast markets, alongside disciplined cost control and active capital recycling. The positive market reaction reflects investor approval of ongoing recovery and stability amid remaining studio segment challenges.

• Office portfolio occupancy increased 150 basis points sequentially to 77.8%, with leasing pipeline expanding 13% year over year to 2.4 million square feet.
• Signed 554 thousand square feet of leases, nearly half (49%) were new leases, driven by strong demand from AI and tech tenants in the Bay Area and Silicon Valley.
• Studio operations faced a $2.4 million revenue decline quarter-over-quarter due to lower activity in Coyote’s Lighting and Grip, Pro Supplies, and Fleet, partially offset by cost reductions.
• G&A expenses were substantially reduced year over year, supporting improved cash flow and financial flexibility, with liquidity exceeding $930 million and no drawn credit facility.
• Targeting $200 million in FFO-accretive asset sales in 2026, with two assets already under contract or at agreed prices, aligning with a focused portfolio strategy.