Tue, Nov 12, 10:10 PM (249 days ago)
Hudson Pacific Properties, Inc. (HPP) reported a significant net loss of $107 million for Q3 2024, a 199.3% increase from the previous year, driven by a $36.5 million impairment loss on certain office properties and a decline in net operating income (NOI). Total revenues decreased 13.4% to $200.4 million, with office rental revenues dropping 13% due to lease expirations and a transition to cash basis reporting for a tenant. NOI fell 28.3% to $85.6 million, attributed to a 22.1% decline in same-store NOI. Operating expenses increased slightly, while interest expense decreased by 16% to $45 million, primarily due to reduced borrowings. The company maintained a cash position of $90.7 million and had $605 million available under its unsecured revolving credit facility. Looking ahead, HPP's portfolio remains 80% leased, with ongoing development projects expected to stabilize in coming years. The company faces uncertainties related to economic conditions and interest rate fluctuations, impacting future operations and cash flows.