New York, Feb 27, 2026, 08:28 ET — Premarket
Key points:
- Hudson Pacific Properties soared 20.9% Thursday, following its release of a 2026 funds-from-operations outlook.
- The company posted a sharp net loss for the quarter, hit by a non-cash impairment related to its Quixote business along with several other factors.
- Leasing updates, debt maturities, and REITs’ sensitivity to rates are drawing traders’ attention ahead of the U.S. inflation numbers, which hit at 8:30 a.m. ET.
Hudson Pacific Properties Inc jumped in after-hours trading Thursday, with shares recently at $7.70. The office-and-studio landlord brought back its full-year outlook and highlighted new leasing activity.
Why does it matter? Hudson Pacific’s stock has been acting like a balance-sheet bet. Office REITs have taken hits from investors worried about vacancy rates and refinancing pressure. Now, the company is working to prove it’s got enough runway and a route back to more reliable cash flow.
This comes at a tricky time for rate-sensitive real estate stocks. Swings in inflation data and bond yields are steering the mood, so even when a company sees a pop, rallies can evaporate quickly if rates jump.
Hudson Pacific swung to a net loss of $277.9 million, or $4.31 a share, for the fourth quarter, the company said late Thursday. The numbers reflect a non-cash, non-real-estate impairment charge on Quixote. Total revenue came in at $256.0 million, with results getting a boost from a lease termination fee following the sale of the Element LA office campus.
The company posted FFO excluding certain items at $13.6 million, translating to $0.21 per diluted share. FFO—funds from operations—serves as a key REIT metric, adjusting for property depreciation and a handful of unusual items to give a clearer read on operations.
Hudson Pacific put out its FFO guidance for 2026, projecting $0.96 to $1.06 per diluted share, the company said in its release. No specific items are included in that range.
Hudson Pacific offloaded Element LA for $150 million and landed an additional $81 million from a lease termination. The company applied the net proceeds to pay down $206 million in commercial mortgage-backed securities tied to the site, with leftover funds earmarked for general corporate use.
The company closed out the year with $933.6 million in total liquidity and no debt maturities looming until the third quarter of 2026. Office occupancy at quarter end came in at 76.3%, with leasing reaching 77.0%. Over the past 12 months, in-service studio portfolio and stages posted leasing rates of 67.1% and 69.1%, respectively.
On the earnings call, executives stuck to their “runway” narrative. CFO Harout Krikor Diramerian told analysts the team is working toward a fix for the Collared Media portfolio before its August 2026 maturity, and said Hudson Pacific is “fully engaged with Netflix” on the Los Angeles office portfolio linked to that partnership. https://www.fool.com/earnings/call-transcr…
Still, there’s turbulence ahead. Management expects same-store property cash net operating income—a measure of property-level earnings before financing—to fall in 2026. On the call, executives pointed to lingering uncertainty for what they’re referring to as “Coyote,” saying more write-downs could be on the table if the business doesn’t improve. https://www.fool.com/earnings/call-transcr…
Hudson Pacific put out its latest quarterly press release and supplemental operating package in a Form 8-K, dated Feb. 26, according to a filing.
REIT traders now have their eyes on the U.S. producer price index print for January, set for 8:30 a.m. ET — it’s one of the main numbers feeding into rate bets. Then comes the February jobs report, landing March 6, another possible catalyst for volatility in yields.
