Hudson Pacific Boosts Q4 Leasing to 518,000 Sq Ft and Cuts $51M Expenses
Hudson Pacific reported Q4 leasing of 518,000 sq ft, lifting office occupancy to 76.3% with pipeline up 15% to 2.3M sq ft and tours +50% YoY. The company captured $26M in G&A and interest savings plus $25M cuts, completed $330M in asset sales and reinstated 2026 FFO guidance of $0.96–$1.06.
1. Strong Q4 Leasing Momentum
Executives reported leasing of 518,000 square feet in Q4, lifting office occupancy to 76.3%, up 40 basis points sequentially, and raising the leased rate to 77%. The leasing pipeline expanded 15% to 2.3 million square feet with tours up 50% year over year.
2. Expense Reductions and Balance Sheet Moves
The company achieved $26 million in combined G&A and interest expense savings in 2025 and has locked in $25 million of annualized cuts through Quixote restructuring. Hudson Pacific completed roughly $330 million of asset sales and more than $2 billion of capital transactions last year, nearly doubling its liquidity runway.
3. Studio Business Performance
Studio operations saw sequential improvements with stage occupancy rising 330 basis points to 69.1% and in-service Hollywood stages at 86.2%. However, the Quixote business remains an earnings drag following a large non-cash impairment, prompting plans to manage it to flat earnings by year-end.
4. 2026 Guidance Reinstated
CFO outlined a reinstated full-year FFO guidance of $0.96 to $1.06 per diluted share for 2026, supported by improving leasing trends and cost cuts. Management expects first-quarter FFO slightly below Q4 levels, with in-service office occupancy projected to reach 80–82% for the year.