Hudson Pacific Properties Reports $104.7 Million Net Loss in Q2 2026

Hudson Pacific Properties, Inc. reported a net loss of $104.7 million for the second quarter of 2026, a 19.3% increase from the $87.8 million loss recorded in the same period of 2025. The company's total revenues for the quarter were $188.3 million, slightly down from $190.0 million year-over-year. The decline in revenue was attributed to a decrease in service and other revenues, which fell to $3.5 million from $5.3 million, while rental revenues from office and studio properties remained relatively stable. The company’s total revenues for the first half of 2026 were $370.2 million, compared to $388.5 million for the same period in 2025.

Significant operational changes included an impairment loss of $50.4 million related to the phased wind-down of leased sound stage facilities and the 2001 Gateway Place office property, which was classified as held for sale. This impairment charge was a key factor in the increased net loss for the quarter. Additionally, the company recorded a loss on lease terminations of $4.9 million, primarily due to the termination of certain leases at Quixote. In contrast, general and administrative expenses decreased significantly to $12.0 million from $27.8 million, reflecting a reduction in compensation expenses following the cancellation of performance unit equity awards.

In terms of operational metrics, Hudson Pacific's office properties reported an occupancy rate of 81.0% and a leasing rate of 81.3% as of June 30, 2026. The studio segment showed a lower occupancy rate of 69.8%, with a significant portion of its properties undergoing repositioning. The company’s total consolidated portfolio included 52 properties, with a total rentable area of approximately 18.9 million square feet, reflecting a diverse mix of office and studio spaces across the United States, Canada, and the United Kingdom.

Looking ahead, Hudson Pacific Properties anticipates continued challenges in the market, particularly in the studio segment, as it navigates the impacts of the ongoing restructuring of its leased sound stage facilities. The company has not made any acquisitions or dispositions during the first half of 2026 but plans to utilize proceeds from the recent sale of its 2001 Gateway Place property for general corporate purposes. The company remains focused on maintaining liquidity and managing its debt levels, with total unsecured and secured debt standing at approximately $3.36 billion as of June 30, 2026.