Hudson Pacific Properties: Cash Flow Has Improved, But Occupancy Remains Unstable

Jeremy LaKosh profile picture
Jeremy LaKosh
5.04K Followers
(6min)

Summary

  • Hudson Pacific Properties faces declining office revenue and occupancy, with a net loss of $100 million in the first half of 2024.
  • Despite a slight improvement in free cash flow, the company’s preferred share dividend is at risk due to cash flow strains.
  • The company's debt profile is concerning, with significant maturities in 2025 and 2026.
  • Until leasing and occupancy stabilize, I recommend avoiding Hudson Pacific Properties' shares and debt due to potential revenue declines and cash flow issues.

Margarita-Young

Introduction

Hudson Pacific Properties, Inc. (NYSE:HPP) is a real estate investment trust that specializes in the ownership of office buildings and sound studios. Late last year, I wrote about how the dividend elimination was not enough

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