The following is a summary of the Hudson Pacific Properties, Inc. (HPP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Hudson Pacific reported Q1 2024 revenue of $214 million, down from $252.3 million in Q1 of the previous year due to asset sales, tenant spaces vacating and studio business disruption from strikes.
The Q1 FFO, excluding specified items, was $24.2 million or $0.17 per diluted share, down from $49.7 million or $0.35 per diluted share in the same period last year.
The company's same-store cash NOI was $108.3 million, lower than the $124.4 million due primarily to two significant tenant exits.
The end of quarter total liquidity was recorded at $734 million, including $114 million in unrestricted cash and $620 million of undrawn capacity from an unsecured revolving credit facility.
Business Progress:
Hudson Pacific experienced an uptick in office leasing activity with an acceleration of new deals in the first half of the year.
The company plans to sell 3 office assets, totaling about 900,000 square feet, to further deleverage and bolster its balance sheet.
In their studio business, promising activity on vacant stages has been noted, although post-strike recovery has been slower than anticipated.
The company is gauging strategic alternatives for its studio business, a move that could include potential spin-offs or roll-ups.
With their facilities fully occupied and filming ongoing at two primary studios, they plan to leverage improved income from recently acquired full ownership of 1455 Market.
More details: Hudson Pacific Properties Inc IR
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