Hudson Pacific Properties, Inc. Q4 FY2025 earnings call

• 2025 was a breakthrough year, executed $330M asset sales, over $2B capital transactions, drove $26M G&A and interest expense savings, restructured QIOTI with $25M annualized savings, strong leasing performance. • Market fundamentals strengthening, San Francisco, Silicon Valley, Puget Sound had positive absorption, LA office portfolio nearly fully leased. • Priorities for 2026: drive occupancy growth, eliminate Kyoti's earnings drag by year end, maintain capital discipline. • Leasing momentum continued in fourth quarter, office portfolio occupancy up, leasing pipeline at 2.3M sq ft, studio operating results show steady progress. • Development projects: Washington 1000 in early discussions on large requirements, Sunset Pier 94 Studios delivered on-time and under-budget with 90% occupancy.

Office: In 2025, drove $26 million in G&A and interest expense savings, signed over 2.2 million sq ft of office leases, office portfolio occupancy in fourth quarter was 76.3%, lease percentage 77%, leasing pipeline 2.3 million sq ft, fourth quarter tours accelerated over 50% y/y, 2026 expirations 1M sq ft with 60% coverage on 1st quarter expirations. Studio: In-service trailing 12-month stage occupancy 69.1%, Hollywood stages 86.2%, Coyote stages 53.3%, studio revenue increased $3.6M sequentially, Studio NOI increased $2.1M.

• Reinstating full-year FFO guidance at $0.96 to $1.06 per diluted share. • Anticipate slightly lower FFO in first quarter 2026 relative to fourth quarter 2025, then steady sequential growth. • Introducing annual average in-service office occupancy guidance of 80 to 82%. • Expect full year same store property cash NOI growth of negative 1.75% to negative 0.75%. • Projecting interest expense of $151 to $161 million and G&A of $49 to $55 million in 2026.

• Uncertainty around the resolution of the Hollywood Media Portfolio Loan. • Potential for additional impairment in the QOD business if utilization and show counts are below expectations. • Economic slowdown or AI fears impacting market recognition of progress and cost of capital.

Q: Blaine Heck asked about Quixote's ultimate plans, sale exploration, CMBS maturity on Hollywood Media portfolio, and 1455 Market terms.

A: Specifics on Quixote and Glen Oaks evaluation, ongoing CMBS negotiations, and 1455 Market terms discussed.

Q: Alex Goldfarb asked about cash generation from asset sales and leasing, and studio production ramp.

A: Mark responded on cash flow and liquidity, and studio production underwriting.

Q: Richard Anderson asked about Coyote wind down and office space retention rate.

A: Discussed Coyote wind down evaluation and office space retention and leasing pipeline.

Q: Ronald Camden asked about occupancy guidance trajectory and same store cash NOI.

A: Addressed occupancy guidance trajectory and same store cash NOI factors.

Q: Jana Galan asked about occupancy guidance, Sunset Pier 94, and FFO guidance refinancing.

A: Answered occupancy guidance, Sunset Pier 94, and FFO guidance refinancing questions.

Q: Tom Catherwood asked about longer term vision and market recognition.

A: Discussed longer term vision and market recognition considerations.

Q: Seth Berge asked about Quixote impairment and leasing momentum CapEx.

A: Addressed Quixote impairment and leasing momentum CapEx.

Q: Dylan Berzinski asked about Seattle market and political situation.

A: Discussed Seattle market trends and political situation.

Q: Vikram Malhotra asked about tenant exposure and studio lease structure.

A: Addressed tenant exposure and studio lease structure.