LOS ANGELES - Hudson Pacific Properties, Inc. (NYSE: NYSE:HPP), a real estate investment trust (REIT) focused on properties catering to the tech and media sectors, disclosed its financial outcomes for the fourth quarter of 2023, revealing a mix of strategic dispositions and a downturn in net income.
The company reported a net loss attributable to common stockholders of $98.0 million, a significant larger loss from the $12.0 million loss in the same period the previous year. This was largely due to reduced total revenue, which fell to $223.4 million from $269.9 million, influenced by asset sales and tenant move-outs, alongside a reduction in studio service revenue due to industry strikes.
Despite these challenges, Hudson (NYSE:HUD) Pacific completed substantial leasing activity, securing 431,980 square feet across 77 new and renewal leases. However, occupancy rates in its office and studio portfolios saw a decline, with in-service office portfolio ending at 80.8% occupied.
On the disposition front, the company made notable sales, including a $700 million transaction for One Westside and Westside Two office redevelopments in West Los Angeles. These sales contributed to a year of over $1 billion in asset dispositions.
Hudson Pacific also highlighted its commitment to sustainability, earning top rankings in the 2023 GRESB Real Estate Assessment and other ESG recognitions.
Looking forward, the company provided a 2024 FFO outlook ranging from $0.15 to $0.19 per diluted share for the first quarter and $1.00 to $1.10 for the full year. This forecast is based on management's view of market conditions, rental rates, and occupancy levels, excluding the impact of new acquisitions, dispositions, or debt financings.
The company's balance sheet as of December 31, 2023, showed $808.4 million in total liquidity, with net debt to undepreciated book value at 36.5%. Moreover, Hudson Pacific refinanced Bentall Centre with a $482.2 million mortgage loan and completed a credit facility amendment, reducing lender commitments by $100 million.
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