# Hudson Pacific Properties (HPP.US)

Canonical: https://gigainvestors.com/s/HPP

Analysis as of: 2026-10-16T07:29:06.903Z. Financial observations: FY2007–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $11.17 per share; close as of 2026-10-15.

Estimated value: low $16.92 per share, central $19.09 per share, high $21.98 per share. Buy at or below the central value $19.09 per share. Valuation as of 2026-10-16T07:29:06.903Z; scenarios are not confidence intervals.

Expected annual return: 15.8% at the stated quote. About 15.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 4

- Operating margin variation: 1.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.14×

- FY2017: 0.19×

- FY2018: 0.20×

- FY2019: 0.54×

- FY2020: 0.53×

- FY2021: 0.16×

- FY2022: 0.16×

- FY2023: 0.03×

- FY2024: -0.05×

- FY2025: -0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 104.8pp below the typical margin (limit 4pp)

- ROIC, median of available years: 1.3%

- ROIC, second-lowest year: -0.5%

- Typical minus recent gross margin: 104.8 pp

- Typical gross margin (annual median): 62.6%

- Recent gross margin (lower of latest and 3-year median): -42.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 12.7%

- ROIC including acquisitions, ten-year median: 0.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 1.0%

- FY2017: 1.1%

- FY2018: 1.6%

- FY2019: 4.2%

- FY2020: 3.9%

- FY2021: 1.8%

- FY2022: 1.6%

- FY2023: 0.3%

- FY2024: -0.5%

- FY2025: -0.6%

### economics: fail

- incremental invested capital return below threshold

- working capital as a share of revenue rose more than 10pp and ends positive

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $315M

- Net income, five-year total: -$1.1B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 7.4 pp

- Working capital / revenue, change between three-year averages: 50.8 pp

- Working capital / revenue, final three-year average: 60.9%

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: $86M

- FY2022: $222M

- FY2023: $218M

- FY2024: -$12M

- FY2025: -$199M

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 1.1% vs -0.5%

- Per-share earnings: 1.82 to -12.35 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 13.8%

- Ordinary dilution, 5-year annual growth: 15.3%

- Market cap gain: -$91M

- Cumulative retained earnings: -$1.4B

- Diluted shares, 10-year annual growth: 13.8%

- Diluted shares, 5-year annual growth: 15.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$14.16

- Per-share value, starting three-year median: $1.82

- Per-share value, ending three-year median: -$12.35

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 41.0%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $582M

- Cumulative net income, 10 years: -$851M

- ROIC, first three-year median: 1.1%

- ROIC, last three-year median: -0.5%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.82

- FY2017: $3.15

- FY2018: $4.47

- FY2019: $1.97

- FY2020: $0.09

- FY2021: $0.47

- FY2022: -$1.70

- FY2023: -$8.64

- FY2024: -$17.02

- FY2025: -$12.35

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -9.3%

- Receivables to sales index (DSRI): 0.99×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 25.1%

- Earnings backed by cash: Yes

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -3.0%

- FY2017: -3.4%

- FY2018: -1.6%

- FY2019: -3.3%

- FY2020: -3.6%

- FY2021: -3.4%

- FY2022: -4.3%

- FY2023: -4.9%

- FY2024: -6.2%

- FY2025: -9.3%

## Holders

- [Christopher Davis](https://gigainvestors.com/DAV): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 60% since Mar 2022 · "Hudson Pacific sells Element LA for $231M, revises Q4 FFO outlook to $0.15–$0.25" (seekingalpha.com, Dec 2025) · sales -1.3%

Story as of 2026-10-16T09:58:53.936Z; price observation 2026-10-15.

Price needs cash profits to shrink 6.5% a year for ten years

- 2025-12-05: Hudson Pacific sells Element LA for $231M, revises Q4 FFO outlook to $0.15–$0.25 ([seekingalpha.com](https://seekingalpha.com/news/4528784-hudson-pacific-sells-element-la-for-231m-revises-q4-ffo-outlook-to-015025?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales -1.3%; source https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm; observed 2026-02-27.

- FY2016: $640M 

- FY2017: $728M 

- FY2018: $728M 

- FY2019: $817M 

- FY2020: $806M 

- FY2021: $897M 

- FY2022: $1.0B 

- FY2023: $952M 

- FY2024: $842M 

- FY2025: $831M 

### Gross margin · FY2024

gross margin 46.1%; source https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm; observed 2026-02-27.

- FY2016: 64.2% 

- FY2017: 65.1% 

- FY2018: 63.2% 

- FY2019: 63.0% 

- FY2020: 62.7% 

- FY2021: 62.6% 

- FY2022: 59.7% 

- FY2023: 52.7% 

- FY2024: 46.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in property rentals; annual sales are USD 831.1 million.

- Source: https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm (filed 2026-02-27); FY2025: revenue 831105000; grossProfit -350159000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); HPP.US: Hudson Pacific Properties, Inc. owns, operates, develops and redevelops top-tier office real estate across high-barrier-to-entry West Coast gateway markets, including the San Francisco Bay Area, Los Angeles, Seattle and Vancouver. The company also owns a studio platform unique among publicly traded REITs, comprising one of the largest independent studio operations in Los Angeles, along with an additional studio in New York. Hudson Pacific's in-service portfolio of 46 properties includes approximately 12.8 million square feet of office space and approximately 1.7 million square feet of studio space, leased to investment-grade and blue-chip tenants in technology and media, balanced by legal, government, retail and financial and business services users. Hudson Pacific Properties, Inc. was incorporated in 1997 and is based in Los Angeles, United States.

### Why customers stay

It earns 1.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: grossProfit / revenue = 52.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2024: grossProfit / revenue = 46.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm (filed 2026-02-27); FY2025: grossProfit / revenue = -42.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); 10-year return on capital observations [[2016,0.010066482778498942],[2017,0.010579090937793953],[2018,0.01568240185668946],[2019,0.04246444352877234],[2020,0.039025384753309834],[2021,0.017889037119945727],[2022,0.016095750315179673],[2023,0.0032234568371520434],[2024,-0.004992605393633461],[2025,-0.0057038347231658576]]; median 0.013130746397241707. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 7.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2017: growth capex 0; upkeep 257734000; owner earnings 95062000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2019: growth capex 0; upkeep 20500000; owner earnings 250064000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2021: growth capex 0; upkeep 125228000; owner earnings 86195332.41417344. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2022: growth capex 0; upkeep 116668000; owner earnings 221580000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); FY2023: growth capex 0; upkeep 5740000; owner earnings 218217000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Dividend observations: [[2016,118455000],[2017,159180000],[2018,157621000],[2019,158437000],[2020,155608000],[2021,155172000],[2022,168751000],[2023,75760000],[2024,36177000],[2025,20903000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm (filed 2026-02-27); FY2025: cash repurchases 7338000 USD.

### Are managers owners

Insiders own 2.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); HPP.US SharesStats.PercentInsiders = 2.508 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 6.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-27); Ten-year compound average after fade. Initial solved rate -0.10342703148517465. Price 11.17; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -90.04081920815415 → FY2025 -4.449091940731024. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $33.62 per share

- 2016-11: $34.87 per share

- 2016-12: $34.78 per share

- 2017-01: $35.41 per share

- 2017-02: $36.58 per share

- 2017-03: $34.64 per share

- 2017-04: $34.36 per share

- 2017-05: $32.76 per share

- 2017-06: $34.19 per share

- 2017-07: $32.72 per share

- 2017-08: $33.00 per share

- 2017-09: $33.53 per share

- 2017-10: $33.82 per share

- 2017-11: $35.63 per share

- 2017-12: $34.25 per share

- 2018-01: $31.97 per share

- 2018-02: $31.57 per share

- 2018-03: $32.53 per share

- 2018-04: $32.87 per share

- 2018-05: $35.40 per share

- 2018-06: $35.43 per share

- 2018-07: $34.26 per share

- 2018-08: $33.84 per share

- 2018-09: $32.72 per share

- 2018-10: $30.30 per share

- 2018-11: $30.86 per share

- 2018-12: $29.06 per share

- 2019-01: $32.47 per share

- 2019-02: $33.22 per share

- 2019-03: $34.42 per share

- 2019-04: $34.86 per share

- 2019-05: $33.41 per share

- 2019-06: $33.27 per share

- 2019-07: $35.30 per share

- 2019-08: $34.00 per share

- 2019-09: $33.46 per share

- 2019-10: $35.92 per share

- 2019-11: $35.80 per share

- 2019-12: $37.65 per share

- 2020-01: $36.34 per share

- 2020-02: $32.28 per share

- 2020-03: $25.36 per share

- 2020-04: $24.58 per share

- 2020-05: $24.17 per share

- 2020-06: $25.16 per share

- 2020-07: $23.57 per share

- 2020-08: $23.48 per share

- 2020-09: $21.93 per share

- 2020-10: $19.26 per share

- 2020-11: $26.00 per share

- 2020-12: $24.02 per share

- 2021-01: $23.44 per share

- 2021-02: $25.59 per share

- 2021-03: $27.13 per share

- 2021-04: $28.11 per share

- 2021-05: $28.99 per share

- 2021-06: $27.82 per share

- 2021-07: $27.26 per share

- 2021-08: $26.38 per share

- 2021-09: $26.27 per share

- 2021-10: $25.75 per share

- 2021-11: $24.34 per share

- 2021-12: $24.71 per share

- 2022-01: $23.63 per share

- 2022-02: $26.40 per share

- 2022-03: $27.75 per share

- 2022-04: $23.28 per share

- 2022-05: $19.91 per share

- 2022-06: $14.84 per share

- 2022-07: $15.04 per share

- 2022-08: $13.21 per share

- 2022-09: $10.95 per share

- 2022-10: $11.04 per share

- 2022-11: $11.56 per share

- 2022-12: $9.73 per share

- 2023-01: $11.39 per share

- 2023-02: $9.23 per share

- 2023-03: $6.65 per share

- 2023-04: $5.56 per share

- 2023-05: $4.67 per share

- 2023-06: $4.22 per share

- 2023-07: $5.87 per share

- 2023-08: $6.81 per share

- 2023-09: $6.65 per share

- 2023-10: $4.46 per share

- 2023-11: $5.87 per share

- 2023-12: $9.31 per share

- 2024-01: $8.19 per share

- 2024-02: $6.34 per share

- 2024-03: $6.45 per share

- 2024-04: $5.80 per share

- 2024-05: $4.91 per share

- 2024-06: $4.81 per share

- 2024-07: $5.99 per share

- 2024-08: $5.15 per share

- 2024-09: $4.78 per share

- 2024-10: $4.32 per share

- 2024-11: $3.85 per share

- 2024-12: $3.03 per share

- 2025-01: $3.13 per share

- 2025-02: $3.28 per share

- 2025-03: $2.95 per share

- 2025-04: $2.05 per share

- 2025-05: $1.86 per share

- 2025-06: $2.74 per share

- 2025-07: $2.45 per share

- 2025-08: $2.81 per share

- 2025-09: $2.76 per share

- 2025-10: $2.44 per share

- 2025-11: $1.98 per share

- 2025-12: $10.83 per share

- 2026-01: $8.62 per share

- 2026-02: $7.24 per share

- 2026-03: $5.91 per share

- 2026-04: $9.21 per share

- 2026-05: $11.98 per share

- 2026-06: $15.19 per share

- 2026-07: $13.77 per share

- 2026-08: $12.57 per share

- 2026-09: $11.54 per share

- 2026-10: $11.17 per share

## Annual estimated value (USD per share)

- FY2021: low $49.73 per share, central $59.95 per share, high $69.33 per share

- FY2022: low $70.87 per share, central $90.70 per share, high $104.45 per share

- FY2023: low $116.14 per share, central $132.91 per share, high $153.86 per share

- FY2024: low $46.16 per share, central $52.21 per share, high $60.26 per share

- FY2025: low $22.26 per share, central $24.96 per share, high $28.54 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1482512/000148251226000038/hpp-20251231.htm); period 2025-12-31, filed 2026-02-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.