New York, Jan 11, 2026, 21:36 EST — The market has closed.
- Hudson Pacific Properties shares slipped 3.5%, ending the session at $9.72.
- BMO downgraded its rating and lowered the price target, citing uncertainty around the studio and an upcoming CMBS maturity.
- Attention shifts to leasing and refinancing news as February earnings approach.
Hudson Pacific Properties (HPP.N) shares enter Monday down 3.5% from Friday’s close, as a fresh analyst downgrade raises doubts about the office-and-studio landlord’s recovery prospects. The stock closed at $9.72, swinging between $9.55 and $10.07 on roughly 2.6 million shares traded.
The timing is crucial. With U.S. markets closed over the weekend, investors have had a chance to sift through what will actually shift battered office REITs — and what won’t — amid persistently high borrowing costs and cautious lenders.
Hudson Pacific faces pressure from two volatile factors: its West Coast office holdings and a studio portfolio linked to film and TV production. Even a slight shift in leasing activity or financing conditions can rapidly alter the equity narrative.
BMO Capital’s John P. Kim downgraded the stock to “Market Perform” from “Outperform,” dropping his price target to $11 from $16. He cited lingering “uncertainty” around the studio business rebound, highlighting an upcoming Netflix lease expiration and a CMBS maturity. Kim also pointed out steep “concessions”—upfront expenses like tenant improvements, leasing commissions, and free rent—estimating Hudson Pacific’s at 27.4%, compared with 22.6% for the broader office sector. (Streetinsider)
Investors frequently see those concessions as a signal. While bigger giveaways help keep occupancy rates high, they also drain cash and push back the point when lease-ups start boosting earnings.
A separate filing revealed CEO Victor Coleman was granted equity awards linked to long-term goals: 190,476 LTIP Units plus up to 95,238 performance LTIP Units, with the earliest transaction dated Jan. 7. The filing noted these figures were adjusted following a one-for-seven reverse stock split the company executed on Dec. 2. (SEC)
The coming sessions will reveal if Friday’s dip was merely a reaction to ratings or a shift in investor sentiment on the studio rebound. Traders are focused on updates about stage utilization, tenant moves linked to lease expirations, and developments on upcoming debt matters, such as the CMBS loan flagged by BMO.
Hudson Pacific is set to release its quarterly earnings around Feb. 19, per Zacks. (Zacks)
The route to that print isn’t straightforward. If leasing only stays steady because the company keeps offering bigger concessions, or if studio demand remains patchy and refinancing proves pricier than anticipated, the result is clear: cash flow remains constrained, and the stock will trade like a balance-sheet headache.
At present, the next major event for the market to watch is the earnings period—Feb. 19 is the date most are circling. Any unexpected filings or lease news before then could shift expectations. (Nasdaq)
