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LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that its Board of Directors has declared a dividend for the third quarter of 2026 on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share, which will be paid on September 30, 2026 to preferred stockholders of record on September 21, 2026. About Hudson Pacific Properties Hudson Pacific Properties, Inc. (NYSE: HPP) owns, operates, develops.

Hudson Pacific Properties is rated 'Buy' with a $17/share price target, despite a 160% rally from its 52-week low. Recent performance includes four consecutive quarters of occupancy gains and two upward revisions to Core FFO guidance in 2026. HPP remains speculative: AFFO is still negative, the dividend is suspended, and Q3 is expected to be weaker before a potential Q4 rebound.

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Hudson Pacific Properties (HPP - Free Report) is a stock many investors are watching right now. HPP is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.59 right now. For comparison, its industry sports an average P/E of 16.42. Over the past year, HPP's Forward P/E has been as high as 15.55 and as low as 4.61, with a median of 6.38.

We also note that HPP holds a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HPP's PEG compares to its industry's average PEG of 1.59. Within the past year, HPP's PEG has been as high as 0.69 and as low as 0.53, with a median of 0.60.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Hudson Pacific Properties is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HPP feels like a great value stock at the moment.

On August 12, 2026, Hudson Pacific Properties Inc (HPP) shares rose 7.2% to a current price of $14.31. This movement comes amidst a challenging year, with the s

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– Executed 1.3 Million Square Feet of Office Leases –

– In-Service Office Occupancy Up 470 bps –

– $876 Million of Total Liquidity –

– Full-Year Guidance Raised –

LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) (the "Company," "Hudson Pacific," or "HPP") today announced financial and operating results for the second quarter 2026.

Victor Coleman, Hudson Pacific's CEO and Chairman, commented, "Our second quarter results reflect the continued execution of our strategy to drive occupancy and unlock the earnings power of our portfolio. We delivered our fourth consecutive quarter of in-service office occupancy gains, up 470 basis points to 82.5%, and executed 1.3 million square feet of office leases, headlined by 891,000 square feet of new and renewal leases with the City and County of San Francisco. This landmark transaction underscores the enduring appeal of our portfolio and provides nearly a quarter century of cash flow visibility. We increased Core FFO on a per share basis by 30% to $0.35, while growing same-store cash NOI by 7.5%, further evidence that our occupancy gains are translating directly into earnings growth.

"Our studio business also continued to make progress, highlighted by our Hollywood stages, which remained effectively fully leased at 95.5%. We stayed disciplined on capital allocation, ending the quarter with $876 million of total liquidity while continuing to prune non-core assets. With a reloaded 2.4 million-square-foot leasing pipeline, and broad demand from AI, other technology and professional services tenants alike building across our West Coast markets, we are confident in our path toward sustained FFO per share growth."

Financial Results Compared to Second Quarter 2025

Total revenue of $188.3 million compared to $190.0 million, primarily due to asset dispositions, partially offset by improved office occupancy General and administrative expenses of $12.0 million, improved from $13.5 million (excluding $14.3 million of one-time expenses in the prior year associated with cancellation of non-cash compensation agreements), driven by ongoing cost savings initiatives Core FFO grew to $23.1 million, or $0.35 per diluted share, compared to $8.0 million, or $0.27 per diluted share, up approximately 30% on a per share basis Adjustments to FFO totaled $7.5 million, or $0.11 per diluted share, compared to $19.2 million, or $0.64 per diluted share FFO increased to $15.6 million, or $0.24 per diluted share, up from $(11.2) million, or $(0.38) per diluted share AFFO improved to $(3.2) million, or $(0.05) per diluted share, up from $(6.1) million, or $(0.20) per diluted share, driven by stronger Core FFO, partially offset by the timing of capital expenditures associated with lease-up activity Same-store cash NOI of $90.2 million grew 7.5% from $83.9 million, driven by higher office and studio occupancy Office Leasing

Executed 56 leases totaling 1.3 million square feet (61% new / 39% renewal), headlined by 891,000 square feet of new and renewal leases signed with the City and County of San Francisco at 1455 Market with a weighted average 24-year term Executed 402,000 square feet (71% new / 29% renewal) across the broader portfolio excluding the City and County leases, including additional notable leases: 39,000-square-foot, 9-year new lease at 83 King in Pioneer Square; 28,000-square-foot, 5-year new lease at Hill7 in Denny Triangle; 26,000-square-foot, 9-year new lease at Page Mill Hill in Palo Alto; and 20,000-square-foot, 3-year new lease at Shorebreeze in Redwood Shores GAAP rents on new leases signed increased 17.2% compared to prior levels while cash rents were down 11.4%, largely due to the City and County leases at 1455 Market Excluding the City and County leases, GAAP and cash rents were down 3.3% and 9.9%, respectively, due to re-leasing activity on space previously signed at pre-pandemic peak rents in Palo Alto In-service office portfolio occupancy improved for the fourth consecutive quarter to 82.5% (up sequentially from 77.8%) and leased rate rose to 82.8% (up sequentially from 78.4%) Studio Leasing

In-service studio stages were 74.6% leased on a trailing three-month basis (up sequentially from 72.8%) and 74.6% on a trailing 12-month basis (up sequentially from 72.5%) Reflects Hollywood studios' continued strong performance with stages 95.5% leased; Sunset Pier 94 Studios reached 78.5% leased (up sequentially from 38.8%) Dispositions

Subsequent to quarter-end, sold 2001 Gateway, a 161,000-square-foot, 55% leased office building, part of the Gateway office complex in North San Jose, for $25 million with net proceeds used for general corporate purposes Balance Sheet as of June 30, 2026

Total liquidity of $876.1 million consisting of $80.8 million in unrestricted cash and cash equivalents and full availability of $795.3 million under the unsecured revolving credit facility Net debt to undepreciated book value of 32.4% (HPP's share), with 100.0% of debt fixed or capped at a weighted average interest rate of 4.9% and one remaining 2026 maturity Dividend

The Board of Directors declared and paid a dividend of $0.296875 per share on the 4.750% Series C cumulative preferred stock 2026 Outlook

Hudson Pacific is increasing its full-year 2026 Core FFO outlook to $1.12 to $1.20 per diluted share, from the prior range of $1.10 to $1.18. This updated range excludes the previously announced closures of Quixote's stage and Atlanta operations and the associated stage ancillary and pro-supplies segments from Core FFO.

This outlook reflects management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of events referenced in this press release and in earlier announcements. It otherwise excludes any impact from new acquisitions, dispositions, debt financings, amendments or repayments, recapitalizations, capital markets activity or similar matters. There can be no assurance that actual results will not differ materially from these estimates.

The table below reflects key assumptions for this outlook:

Unaudited, in thousands

Full-Year 2026

Assumptions

Metric

Low

High

Average in-service office occupancy

80.0%

82.0%

Growth in same-store cash NOI(1)(2)

(1.75)%

(0.75)%

GAAP non-cash revenue(3)

$11,500

$16,500

GAAP non-cash expense(4)

$(6,000)

$(8,000)

General and administrative expenses(5)

$(48,500)

$(54,500)

Interest expense(6)

$(150,000)

$(160,000)

Non-real estate depreciation and amortization

$(12,000)

$(14,000)

FFO from unconsolidated joint ventures

$500

$2,500

FFO attributable to non-controlling interests

$(22,000)

$(26,000)

FFO attributable to preferred units/shares

$(20,000)

$(20,000)

Weighted average common stock/units outstanding—diluted(7)

65,000

66,000

(1)

Same-store defined as consolidated 37 office properties and three studio properties owned and stabilized as of January 1, 2025, and anticipated to be owned and stabilized through December 31, 2026.

(2)

See non-GAAP information below for cash NOI definition.

(3)

Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.

(4)

Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.

(5)

Includes estimated $6.9 million of non-cash compensation expense.

(6)

Includes estimated $6.0 million of non-cash interest expense.

(7)

Diluted shares represent Company ownership through shares of common stock, OP Units and other convertible or exchangeable instruments. Weighted average fully diluted common stock/units outstanding for 2026 includes estimated dilution of stock grants to executives under long-term incentive programs. This estimate is based on award potential as of the end of the most recently completed quarter, calculated in accordance with ASC 260, Earnings Per Share.

The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis, where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and/or amount of various items that would impact net income attributable to common stockholders per diluted share, which is the most directly comparable forward-looking GAAP financial measure. This includes, for example, acquisition costs and other non-core items that have not yet occurred, are out of the Company's control and/or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Supplemental Information

Supplemental financial information regarding Hudson Pacific's second quarter 2026 results may be found on the Investors section of the Company's website at HudsonPacificProperties.com. This supplemental information provides additional detail on items such as property occupancy, financial performance by property and debt maturity schedules.

Conference Call

The Company will hold a conference call to discuss second quarter 2026 financial results at 9:00 a.m. PT / 12:00 p.m. ET on August 5, 2026. The conference call will be available via live audio webcast on the Investors section of the Company's website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

  Consolidated Balance Sheets

In thousands, except share data

6/30/26

12/31/25

(Unaudited)

ASSETS

Investment in real estate, at cost

$

7,786,264

$

7,793,299

Accumulated depreciation and amortization

(2,063,909

)

(1,953,048

)

Investment in real estate, net

5,722,355

5,840,251

Non-real estate property, plant and equipment, net

67,564

72,397

Cash and cash equivalents

80,760

138,358

Restricted cash

24,659

23,770

Accounts receivable, net

21,531

14,923

Straight-line rent receivables, net

205,153

195,425

Deferred leasing costs and intangible assets, net

388,879

307,390

Operating lease right-of-use assets

291,420

333,258

Prepaid expenses and other assets, net

85,833

86,607

Investment in unconsolidated real estate entities

250,595

246,835

Goodwill

8,754

8,754

Assets associated with real estate held for sale

22,903

—

TOTAL ASSETS

$

7,170,406

$

7,267,968

LIABILITIES AND EQUITY

Liabilities

Unsecured and secured debt, net

$

3,348,793

$

3,351,458

Joint venture partner debt

66,136

66,136

Accounts payable, accrued liabilities and other

298,168

209,382

Operating lease liabilities

323,486

343,886

Intangible liabilities, net

15,776

17,772

Security deposits, prepaid rent and other

78,069

74,369

Liabilities associated with real estate held for sale

1,442

—

Total liabilities

4,131,870

4,063,003

Redeemable preferred units of the operating partnership

2,795

2,795

Redeemable non-controlling interest in consolidated real estate entities

48,844

50,581

Equity

HPP stockholders' equity:

4.750% Series C cumulative redeemable preferred stock, $0.01 par value, $25.00 per share liquidation preference, 18,400,000 authorized; 17,000,000 shares issued and outstanding at 6/30/26 and 12/31/25

425,000

425,000

Common stock, $0.01 par value, 103,200,000 authorized, 54,267,530 and 54,227,096 shares issued and outstanding at 6/30/26 and 12/31/25, respectively.

529

529

Additional paid-in capital

2,390,943

2,548,488

Accumulated other comprehensive loss

(2,126

)

(1,860

)

Total HPP stockholders' equity

2,814,346

2,972,157

Non-controlling interest—members in consolidated real estate entities

61,437

67,869

Non-controlling interest—units in the operating partnership

111,114

111,563

Total equity

2,986,897

3,151,589

TOTAL LIABILITIES AND EQUITY

$

7,170,406

$

7,267,968

  Consolidated Statements of Operations

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/26

6/30/25

6/30/26

6/30/25

REVENUES

Office

Rental revenues

$

149,599

$

150,533

$

294,827

$

308,926

Service and other revenues

3,522

5,300

6,968

12,118

Total office revenues

153,121

155,833

301,795

321,044

Studio

Rental revenues

13,489

13,889

27,286

27,541

Service and other revenues

21,688

20,280

41,069

39,876

Total studio revenues

35,177

34,169

68,355

67,417

Total revenues

188,298

190,002

370,150

388,461

OPERATING EXPENSES

Office operating expenses

69,535

71,501

139,357

143,778

Studio operating expenses

34,139

36,552

65,848

77,533

General and administrative

12,002

27,776

24,577

46,259

Depreciation and amortization

82,133

94,751

162,855

187,836

Total operating expenses

197,809

230,580

392,637

455,406

OTHER (EXPENSES) INCOME

Loss from unconsolidated real estate entities

(959

)

(205

)

(1,396

)

(1,459

)

Fee income

964

1,476

2,071

2,835

Interest expense

(38,476

)

(48,137

)

(76,470

)

(91,642

)

Interest income

566

2,123

2,215

2,558

Management services reimbursement income—unconsolidated real estate entities

1,098

1,123

2,222

2,098

Management services expense—unconsolidated real estate entities

(1,098

)

(1,123

)

(2,222

)

(2,098

)

Transaction-related expenses

(682

)

(451

)

(783

)

(451

)

Unrealized (loss) gain on non-real estate investments

(840

)

212

(2,802

)

(237

)

(Loss) gain on sale of real estate, net

—

(16

)

—

10,007

Impairment loss

(50,440

)

—

(50,440

)

(18,476

)

Loss on extinguishment of debt

—

(1,637

)

—

(3,495

)

Loss on lease terminations and other

(4,916

)

(93

)

(4,758

)

(85

)

Total other expenses

(94,783

)

(46,728

)

(132,363

)

(100,445

)

Loss before income tax provision

(104,294

)

(87,306

)

(154,850

)

(167,390

)

Income tax provision

(394

)

(454

)

(742

)

(648

)

Net loss

(104,688

)

(87,760

)

(155,592

)

(168,038

)

Net income attributable to Series A preferred units

(44

)

(121

)

(88

)

(267

)

Net income attributable to Series C preferred shares

(5,047

)

(5,047

)

(10,094

)

(10,094

)

Net loss attributable to non-controlling interest in consolidated real estate entities

1,847

6,675

3,457

14,142

Net loss attributable to redeemable non-controlling interest in consolidated real estate entities

1,029

895

1,730

1,797

Net loss attributable to common units in the operating partnership

2,331

2,209

2,884

4,603

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS

$

(104,572

)

$

(83,149

)

$

(157,703

)

$

(157,857

)

BASIC AND DILUTED PER SHARE AMOUNTS

Net loss attributable to common stockholders—basic

$

(1.62

)

$

(2.87

)

$

(2.45

)

$

(6.42

)

Net loss attributable to common stockholders—diluted

$

(1.62

)

$

(2.87

)

$

(2.45

)

$

(6.42

)

Weighted average shares of common stock outstanding—basic

64,475

28,952

64,469

24,599

Weighted average shares of common stock outstanding—diluted

64,475

28,952

64,469

24,599

  Funds from Operations(1)

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/26

6/30/25

6/30/26

6/30/25

RECONCILIATION OF NET LOSS TO FUNDS FROM OPERATIONS (“FFO”)(1):

Net loss

$

(104,688

)

$

(87,760

)

$

(155,592

)

$

(168,038

)

Adjustments:

Depreciation and amortization—consolidated

82,133

94,751

162,855

187,836

Depreciation and amortization—non-real estate assets

(3,598

)

(8,785

)

(7,039

)

(18,434

)

Depreciation and amortization—HPP's share from unconsolidated real estate entities(2)

1,727

1,113

3,203

2,158

Loss (gain) on sale of real estate, net

—

16

—

(10,007

)

Impairment loss—real estate assets

50,440

—

50,440

18,476

Unrealized loss (gain) on non-real estate investments

840

(212

)

2,802

237

FFO attributable to non-controlling interests

(6,162

)

(5,152

)

(12,875

)

(10,005

)

FFO attributable to preferred shares and units

(5,091

)

(5,168

)

(10,182

)

(10,361

)

FFO to common stock/unit holders

15,601

(11,197

)

33,612

(8,138

)

Adjustments:

Transaction-related expenses

682

451

783

451

Refundable payroll tax credit interest income

—

—

(543

)

—

Prior-period property tax refund

(1,709

)

—

(2,247

)

—

Non-cash compensation agreements forfeiture

—

14,280

—

14,280

Loan swap non-cash reevaluation

—

—

(488

)

682

Early debt repayment expenses

—

3,213

—

5,071

Quixote fleet assets write-off (cost-savings initiatives)

—

626

—

626

Quixote non-competition agreement termination (cost-savings initiatives)

—

—

—

1,402

Non-core Quixote lease terminations

5,011

622

5,011

6,487

Non-core Quixote Studios & Services

3,552

—

3,552

—

Core FFO to common stock/unit holders

$

23,137

$

7,995

$

39,680

$

20,861

Weighted average common stock/units outstanding—diluted

65,684

29,773

65,722

48,691

FFO per common stock/unit—diluted

$

0.24

$

(0.38

)

$

0.51

$

(0.17

)

Core FFO per common stock/unit—diluted

$

0.35

$

0.27

$

0.60

$

0.43

(1)

We calculate Funds from Operations ("FFO") in accordance with the White Paper on FFO approved by the Board of Governors of the National Association of Real Estate Investment Trusts. The White Paper defines FFO as net income or loss calculated in accordance with generally accepted accounting principles in the United States (“GAAP”), excluding gains and losses from sales of depreciable real estate and impairment write-downs associated with depreciable real estate, plus the HPP’s share real estate-related depreciation and amortization, excluding amortization of deferred financing costs and depreciation of non-real estate assets. The calculation of FFO includes the HPP’s share amortization of deferred revenue related to tenant-funded tenant improvements and excludes the depreciation of the related tenant improvement assets.

FFO is a non-GAAP financial measure we believe is a useful supplemental measure of our operating performance. The exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the assets that form the core of our activity and assists in comparing those operating results between periods. Also, because FFO is generally recognized as the industry standard for reporting the operations of REITs, it facilitates comparisons of operating performance to other REITs. However, other REITs may use different methodologies to calculate FFO, and accordingly, our FFO may not be comparable to all other REITs.

Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, many industry investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets, we believe that FFO along with the required GAAP presentations provides a more complete measurement of our performance relative to our competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide. We use FFO per share to calculate annual cash bonuses for certain employees.

However, FFO should not be viewed as an alternative measure of our operating performance because it does not reflect either depreciation and amortization costs or the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, which are significant economic costs and could materially impact our results from operations.

(2)

HPP's share is a Non-GAAP financial measure calculated as the measure on a consolidated basis, in accordance with GAAP, plus our Operating Partnership’s share of the measure from our unconsolidated joint ventures (calculated based upon the Operating Partnership’s percentage ownership interest), minus our partners’ share of the measure from our consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). We believe that presenting HPP’s share of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because we have several significant joint ventures, and in some cases, we exercise significant influence over, but do not control, the joint venture. In such instances, GAAP requires us to account for the joint venture entity using the equity method of accounting, which we do not consolidate for financial reporting purposes. In other cases, GAAP requires us to consolidate the venture even though our partner(s) own(s) a significant percentage interest.

  Adjusted Funds from Operations(1)

Unaudited, in thousands, except per share data

Three Months Ended

Six Months Ended

6/30/26

6/30/25

6/30/26

6/30/25

Core FFO

$

23,137

$

7,995

$

39,680

$

20,861

Adjustments:

GAAP non-cash revenue(2)

(3,382

)

(3,704

)

(6,560

)

(4,375

)

GAAP non-cash expense(3)

1,660

1,788

3,545

3,492

Non-real estate depreciation and amortization

3,598

8,159

7,039

16,406

Non-cash interest expense

1,716

5,065

3,627

9,174

Share/unit-based compensation expense

1,521

3,584

3,433

8,699

Recurring capital expenditures, tenant improvements and lease commissions

(31,474

)

(28,957

)

(65,056

)

(58,615

)

AFFO

$

(3,224

)

$

(6,070

)

$

(14,292

)

$

(4,358

)

Weighted average common stock/units outstanding—diluted

65,684

29,773

65,722

48,691

AFFO per common stock/unit—diluted

$

(0.05

)

$

(0.20

)

$

(0.22

)

$

(0.09

)

(1) Adjusted Funds from Operations ("AFFO") is a non-GAAP financial measure we believe is a useful supplemental measure of our performance. We compute AFFO by adding to Core FFO HPP's share non-cash compensation expense and amortization of deferred financing costs, and subtracting recurring capital expenditures related to HPP's share tenant improvements and leasing commissions (excluding pre-existing obligations on contributed or acquired properties funded with amounts received in settlement of prorations), and eliminating the net effect of HPP’s share straight-line rents, amortization of lease buy-out costs, amortization of above- and below-market lease intangible assets and liabilities, amortization of above- and below-market ground lease intangible assets and liabilities and amortization of loan discounts/premiums. AFFO is not intended to represent cash flow for the period. We believe that AFFO provides useful information to the investment community about our financial position as compared to other REITs since AFFO is a widely reported measure used by other REITs. However, other REITs may use different methodologies for calculating AFFO and, accordingly, our AFFO may not be comparable to other REITs.

(2) Includes non-cash straight-line rent, above/below-market rents and lease incentives associated with studio and office properties.

(3) Includes non-cash straight-line rent expense and above/below-market ground rent associated with studio and office properties.

  Net Operating Income(1)

Unaudited, in thousands

Three Months Ended

6/30/26

6/30/25

RECONCILIATION OF NET LOSS TO NET OPERATING INCOME (“NOI”) AND SAME-STORE CASH NET OPERATING INCOME ("NOI")

Net loss

$

(104,688

)

$

(87,760

)

Adjustments:

Loss from unconsolidated real estate entities

959

205

Fee income

(964

)

(1,476

)

Interest expense

38,476

48,137

Interest income

(566

)

(2,123

)

Management services reimbursement income—unconsolidated real estate entities

(1,098

)

(1,123

)

Management services expense—unconsolidated real estate entities

1,098

1,123

Transaction-related expenses

682

451

Unrealized loss (gain) on non-real estate investments

840

(212

)

Loss on sale of real estate, net

—

16

Impairment loss

50,440

—

Loss on extinguishment of debt

—

1,637

Loss on lease terminations and other

4,916

93

Income tax provision

394

454

General and administrative

12,002

27,776

Depreciation and amortization

82,133

94,751

NOI

$

84,624

$

81,949

NOI BREAKDOWN

Same-store office cash revenues

149,229

145,647

Straight-line rent

5,459

1,751

Amortization of above/below-market leases, net

992

1,016

Amortization of lease incentive costs

(3,657

)

(1,384

)

Same-store office revenues

152,023

147,030

Same-store studios cash revenues

19,733

15,525

Straight-line rent

(209

)

111

Amortization of above-market and below-market leases, net

—

—

Amortization of lease incentive costs

(9

)

(9

)

Same-store studio revenues

19,515

15,627

Same-store revenues

171,538

162,657

Same-store office cash expenses

66,608

66,821

Straight-line rent

317

367

Share/unit-based compensation expense

7

10

Amortization of above/below-market ground leases, net

641

641

Same-store office expenses

67,573

67,839

Same-store studio cash expenses

12,198

10,474

Share/unit-based compensation expense

(35

)

113

Same-store studio expenses

12,163

10,587

Same-store expenses

79,736

78,426

Same-store NOI

91,802

84,231

Non-same-store NOI

(7,178

)

(2,282

)

NOI

$

84,624

$

81,949

More News From Hudson Pacific Properties, Inc.

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Hudson Pacific Properties, Inc. (NYSE: HPP) (the "Company," "Hudson Pacific," or "HPP")today announced financial and operating results for the second quarter 20

Hudson Pacific Properties (HPP - Free Report) reported $188.3 million in revenue for the quarter ended June 2026, representing a year-over-year decline of 0.9%. EPS of $0.35 for the same period compares to -$2.87 a year ago.

The reported revenue represents a surprise of +0.2% over the Zacks Consensus Estimate of $187.93 million. With the consensus EPS estimate being $0.28, the EPS surprise was +25%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Hudson Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Rentable Square Feet - Total STUDIO: 1,680 versus the two-analyst average estimate of 1,564.Rentable Square Feet - Total in-service office: 12,795 compared to the 13,041 average estimate based on two analysts.Revenues- Office- Rental: $149.6 million compared to the $148.24 million average estimate based on two analysts. The reported number represents a change of -0.6% year over year.Revenues- Office- Service and other revenues: $3.52 million versus $4.5 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -33.6% change.Revenues- Studio- Total: $35.18 million compared to the $35.39 million average estimate based on two analysts. The reported number represents a change of +3% year over year.Revenues- Studio- Service and other revenues: $21.69 million versus $21.25 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +6.9% change.Revenues- Office- Total: $153.12 million versus $152.74 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -1.7% change.Revenues- Studio- Rental: $13.49 million versus $14.07 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -2.9% change.View all Key Company Metrics for Hudson Pacific here>>>

Shares of Hudson Pacific have returned -12.8% over the past month versus the Zacks S&P 500 composite's +3.5% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hudson Pacific Properties (HPP - Free Report) or Sabra Healthcare (SBRA - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Right now, Hudson Pacific Properties is sporting a Zacks Rank of #1 (Strong Buy), while Sabra Healthcare has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that HPP likely has seen a stronger improvement to its earnings outlook than SBRA has recently. But this is only part of the picture for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

HPP currently has a forward P/E ratio of 12.41, while SBRA has a forward P/E of 13.72. We also note that HPP has a PEG ratio of 1.05. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. SBRA currently has a PEG ratio of 1.60.

Another notable valuation metric for HPP is its P/B ratio of 0.29. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, SBRA has a P/B of 1.93.

Based on these metrics and many more, HPP holds a Value grade of B, while SBRA has a Value grade of C.

HPP is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that HPP is likely the superior value option right now.

Posted by Defense World Staff on Jul 26th, 2026

Hudson Pacific Properties (NYSE:HPP – Get Free Report) and Alexandria Real Estate Equities (NYSE:ARE – Get Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Earnings and Valuation This table compares Hudson Pacific Properties and Alexandria Real Estate Equities”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Hudson Pacific Properties $831.10 million 0.99 -$561.69 million ($10.10) -1.51 Alexandria Real Estate Equities $3.03 billion 2.94 -$1.43 billion ($6.27) -8.13 Hudson Pacific Properties has higher earnings, but lower revenue than Alexandria Real Estate Equities. Alexandria Real Estate Equities is trading at a lower price-to-earnings ratio than Hudson Pacific Properties, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings This is a breakdown of recent ratings and recommmendations for Hudson Pacific Properties and Alexandria Real Estate Equities, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Hudson Pacific Properties 3 7 3 0 2.00 Alexandria Real Estate Equities 4 9 3 0 1.94 Hudson Pacific Properties presently has a consensus price target of $14.32, suggesting a potential downside of 6.09%. Alexandria Real Estate Equities has a consensus price target of $51.08, suggesting a potential upside of 0.20%. Given Alexandria Real Estate Equities’ higher probable upside, analysts plainly believe Alexandria Real Estate Equities is more favorable than Hudson Pacific Properties.

Risk & Volatility Hudson Pacific Properties has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, Alexandria Real Estate Equities has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Profitability This table compares Hudson Pacific Properties and Alexandria Real Estate Equities’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Hudson Pacific Properties -67.89% -19.05% -7.27% Alexandria Real Estate Equities -36.03% -5.21% -2.96% Insider and Institutional Ownership 97.6% of Hudson Pacific Properties shares are held by institutional investors. Comparatively, 96.5% of Alexandria Real Estate Equities shares are held by institutional investors. 2.5% of Hudson Pacific Properties shares are held by insiders. Comparatively, 1.4% of Alexandria Real Estate Equities shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary Alexandria Real Estate Equities beats Hudson Pacific Properties on 7 of the 13 factors compared between the two stocks.

About Hudson Pacific Properties (Get Free Report)

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.

About Alexandria Real Estate Equities (Get Free Report)

Alexandria Real Estate Equities, Inc. (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a total market capitalization of $33.1 billion and an asset base in North America of 73.5 million SF as of December 31, 2023, which includes 42.0 million RSF of operating properties, 5.5 million RSF of Class A/A+ properties undergoing construction and one near-term project expected to commence construction in the next two years, 2.1 million RSF of priority anticipated development and redevelopment projects, and 23.9 million SF of future development projects. Alexandria has a longstanding and proven track record of developing Class A/A+ properties clustered in life science, agtech, and advanced technology mega campuses that provide our innovative tenants with highly dynamic and collaborative environments that enhance their ability to successfully recruit and retain world-class talent and inspire productivity, efficiency, creativity, and success. Alexandria also provides strategic capital to transformative life science, agrifoodtech, climate innovation, and technology companies through our venture capital platform. We believe our unique business model and diligent underwriting ensure a high-quality and diverse tenant base that results in higher occupancy levels, longer lease terms, higher rental income, higher returns, and greater long-term asset value.

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Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."

Who doesn't like betting on fast-moving trending stocks? But determining the right entry point isn't easy. Often, these stocks lose momentum once their valuation moves ahead of their future growth potential. In such a situation, investors find themselves loaded up on expensive shares with limited to no upside or even a downside. So, going all-in on momentum could be risky at times.

A safer approach could be investing in bargain stocks with recent price momentum. While the Zacks Momentum Style Score (part of the Zacks Style Scores system) helps identify great momentum stocks by paying close attention to trends in a stock's price or earnings, our 'Fast-Paced Momentum at a Bargain' screen comes handy in spotting fast-moving stocks that are still attractively priced.

There are several stocks that currently pass through the screen and Hudson Pacific Properties (HPP - Free Report) is one of them. Here are the key reasons why this stock is a great candidate.

Investors' growing interest in a stock is reflected in its recent price increase. A price change of 1.2% over the past four weeks positions the stock of this real estate investment trust well in this regard.

While any stock can see a spike in price for a short period, it takes a real momentum player to deliver positive returns for a longer time frame. HPP meets this criterion too, as the stock gained 48.8% over the past 12 weeks.

Moreover, the momentum for HPP is fast paced, as the stock currently has a beta of 1.89. This indicates that the stock moves 89% higher than the market in either direction.

Given this price performance, it is no surprise that HPP has a Momentum Score of A, which indicates that this is the right time to enter the stock to take advantage of the momentum with the highest probability of success.

In addition to a favorable Momentum Score, an upward trend in earnings estimate revisions has helped HPP earn a Zacks Rank #1 (Strong Buy). Our research shows that the momentum-effect is quite strong among Zacks Rank #1 and #2 stocks. That's because as covering analysts raise their earnings estimates for a stock, more and more investors take an interest in it, helping its price race to keep up. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Most importantly, despite possessing fast-paced momentum features, HPP is trading at a reasonable valuation. In terms of Price-to-Sales ratio, which is considered as one of the best valuation metrics, the stock looks quite cheap now. HPP is currently trading at 0.97 times its sales. In other words, investors need to pay only 97 cents for each dollar of sales.

So, HPP appears to have plenty of room to run, and that too at a fast pace.

In addition to HPP, there are several other stocks that currently pass through our 'Fast-Paced Momentum at a Bargain' screen. You may consider investing in them and start looking for the newest stocks that fit these criteria.

This is not the only screen that could help you find your next winning stock pick. Based on your personal investing style, you may choose from over 45 Zacks Premium Screens that are strategically created to beat the market.

However, keep in mind that the key to a successful stock-picking strategy is to ensure that it produced profitable results in the past. You could easily do that with the help of the Zacks Research Wizard. In addition to allowing you to backtest the effectiveness of your strategy, the program comes loaded with some of our most successful stock-picking strategies.

Click here to sign up for a free trial to the Research Wizard today.

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Hudson Pacific Properties (HPP) and NETSTREIT (NTST). But which of these two companies is the best option for those looking for undervalued stocks?

-

LOS ANGELES--(BUSINESS WIRE)--Hudson Pacific Properties, Inc. (NYSE: HPP) today announced it will release second quarter financial results before market open on Wednesday, August 5, 2026. The company will hold a conference call to discuss the results at 9:00 a.m. PT / 12:00 p.m. ET the same day.

The conference call will be available via live audio webcast on the Investors section of the company’s website at HudsonPacificProperties.com. A replay of the audio webcast will also be available following the call.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the company from time to time with the SEC.

More News From Hudson Pacific Properties, Inc.

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Key Takeaways Screen picks Hudson Pacific Properties, Strategic Education, AES, Nexa Resources and PG&E as low P/B stocks.Stocks selected using metrics like low P/B, P/S, P/E, PEG under 1, and solid trading volume thresholds.Hudson Pacific shows 15% EPS growth outlook, while Nexa Resources leads with a 51.2% projection. When evaluating a company’s valuation, the price-to-earnings (P/E) ratio is often the default metric because it’s simple and based on readily available earnings data. However, for companies that are unprofitable or still in the early stages of growth with minimal or no earnings, the price-to-sales (P/S) ratio becomes more useful, helping investors spot potentially undervalued stocks.

Beyond P/E and P/S, the price-to-book (P/B) ratio is another straightforward tool for identifying attractively priced companies with strong growth potential. It measures how much investors are paying for each dollar of a company’s book value and is calculated by dividing the stock’s current price by its most recent book value per share.

This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , The AES Corporation (AES - Free Report) , Nexa Resources (NEXA - Free Report) and PG&E Corporation (PCG - Free Report) .

Let us understand the concept of book value.

What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.

It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.

Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.

A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.

Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.

Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.

Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.

Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.

PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.

Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.

Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.

5 Low Price-to-Book StocksHere are five of the 12 stocks that qualified for the screening: 

LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California.  Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

HPP has a projected 3-5-year EPS growth rate of 9.7%.

Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.

STRA currently has a Zacks Rank #1 and a Value Score of B.

Arlington, VA-based AES is a global power company. The company’s businesses are spread across 14 countries in four continents.

AES has a Zacks Rank #2 and a Value Score of A. AES has a projected 3-5-year EPS growth rate of 10.9%. 

Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 51.2%. 

San Francisco, CA-based PG&E Corporation is the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. The utility generates revenues mainly through the sale and delivery of electricity and natural gas to customers. This Zacks Rank #2 company has a Value Score of A. PCG has a projected 3-5-year EPS growth rate of 15.9%.

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of Hudson Pacific Properties (HPP - Free Report) and EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Hudson Pacific Properties has a Zacks Rank of #1 (Strong Buy), while EastGroup Properties has a Zacks Rank of #2 (Buy) right now. This means that HPP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HPP currently has a forward P/E ratio of 9.33, while EGP has a forward P/E of 20.95. We also note that HPP has a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 3.01.

Another notable valuation metric for HPP is its P/B ratio of 0.19. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, EGP has a P/B of 3.01.

These are just a few of the metrics contributing to HPP's Value grade of B and EGP's Value grade of F.

HPP has seen stronger estimate revision activity and sports more attractive valuation metrics than EGP, so it seems like value investors will conclude that HPP is the superior option right now.

Hudson Pacific Properties (HPP - Free Report) came out with quarterly funds from operations (FFO) of $0.25 per share, beating the Zacks Consensus Estimate of $0.18 per share. This compares to FFO of $0.63 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an FFO surprise of +36.39%. A quarter ago, it was expected that this real estate investment trust would post FFO of $0.2 per share when it actually produced FFO of $0.21, delivering a surprise of +5%.

Over the last four quarters, the company has surpassed consensus FFO estimates four times.

Hudson Pacific, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $181.85 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 1.11%. This compares to year-ago revenues of $198.46 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.

Hudson Pacific shares have lost about 1.9% since the beginning of the year versus the S&P 500's gain of 7.6%.

What's Next for Hudson Pacific?While Hudson Pacific has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Hudson Pacific was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $0.22 on $186.9 million in revenues for the coming quarter and $1.00 on $757.5 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the broader Zacks Finance sector, BitFuFu Inc. (FUFU - Free Report) , has yet to report results for the quarter ended March 2026.

This company is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

BitFuFu Inc.'s revenues are expected to be $90.97 million, up 16.6% from the year-ago quarter.

Hudson Pacific Properties (HPP - Free Report) reported $181.85 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 8.4%. EPS of $0.25 for the same period compares to -$3.71 a year ago.

The reported revenue represents a surprise of -1.11% over the Zacks Consensus Estimate of $183.89 million. With the consensus EPS estimate being $0.18, the EPS surprise was +36.39%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Hudson Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Rentable Square Feet - Total STUDIO: 1,680 versus the two-analyst average estimate of 1,448.Rentable Square Feet - Total in-service office: 12,905 compared to the 13,178 average estimate based on two analysts.Revenues- Office- Rental: $145.23 million versus the two-analyst average estimate of $145.06 million. The reported number represents a year-over-year change of -8.3%.Revenues- Office- Service and other revenues: $3.45 million compared to the $4.5 million average estimate based on two analysts. The reported number represents a change of -49.5% year over year.Revenues- Studio- Total: $33.18 million versus $34.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -0.2% change.Revenues- Studio- Service and other revenues: $19.38 million versus the two-analyst average estimate of $20.75 million. The reported number represents a year-over-year change of -1.1%.Revenues- Office- Total: $148.67 million versus the two-analyst average estimate of $149.56 million. The reported number represents a year-over-year change of -10%.Revenues- Studio- Rental: $13.8 million compared to the $13.51 million average estimate based on two analysts. The reported number represents a change of +1.1% year over year.Segment Profit- Studio: $1.47 million compared to the $0.57 million average estimate based on two analysts.Segment Profit- Office: $78.85 million versus $76.75 million estimated by two analysts on average.View all Key Company Metrics for Hudson Pacific here>>>

Shares of Hudson Pacific have returned +100.2% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.

Key Takeaways Hudson Pacific is among five low P/B stocks identified as potentially undervalued in May.Strategic Education carries a projected 3-5-year EPS growth rate of 15% from its education portfolio.Avnet has a projected 3-5-year EPS growth rate of 28.1% among the screened low P/B names. In valuation analysis, while ratios like the price-to-earnings (P/E) and price-to-sales (P/S) multiples are more commonly used by investors, the often-overlooked price-to-book (P/B) ratio can also be a practical tool for spotting potentially undervalued stocks with attractive return potential. The P/B ratio compares a company’s current market price with the book value of its equity.

The formula is:

P/B ratio = Market price per share ÷ Book value per share

Book value per share is calculated by dividing a company’s total shareholders’ equity by its number of outstanding shares.

The P/B ratio indicates how much investors are willing to pay for each dollar of a company’s net assets. For example, if a stock trades at $10 per share and its book value per share is $5, the P/B ratio is 2. This means investors are willing to pay two times the company’s book value for each share.

This metric can help identify attractively priced stocks with upside potential like Hudson Pacific Properties (HPP - Free Report) , Strategic Education (STRA - Free Report) , Hilton Grand Vacations (HGV - Free Report) , Nexa Resources (NEXA - Free Report) and Avnet (AVT - Free Report) .

Let us understand the concept of book value.

What is Book Value?There are several ways in which book value can be defined. Book value is the total value that would be left over, according to the company’s balance sheet, if it went bankrupt immediately. In other words, this is what shareholders would theoretically receive if a company liquidates all its assets after paying off all its liabilities.

It is calculated by subtracting total liabilities from the total assets of a company. In most cases, this equates to common stockholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets should also be subtracted from total assets to determine book value.

Understanding P/B RatioBy comparing the book value of equity to its market price, we get an idea of whether a company is under- or overpriced. Like P/E or P/S ratios, it is always better to compare the P/B ratio within industries.

A P/B ratio of less than one means that the stock is trading at less than its book value or the stock is undervalued and, therefore, a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means that we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a warning. A P/B ratio of less than one can also mean that the company is earning weak or even negative returns on its assets or that the assets are overstated. In such a case, the stock should be shunned because it may be destroying shareholder value. Conversely, the stock’s price may be significantly high — thereby pushing the P/B ratio to more than one — in the likely case that it has become a takeover target, a good enough reason to own the stock.

Moreover, the P/B ratio is not without limitations. It is useful for businesses like finance, investments, insurance and banking or manufacturing companies with many liquid/tangible assets on the books. However, it can be misleading for firms with significant R&D expenditure, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a standalone number. One should analyze other ratios like P/E, P/S and debt to equity before arriving at a reasonable investment decision.

Screening ParametersPrice to Book (common Equity) less than X-Industry Median: A lower P/B compared with the industry average implies that there is enough room for the stock to gain.

Price to Sales less than X-Industry Median: The P/S ratio determines how much the market values every dollar of the company’s sales/revenues — a lower ratio than the industry makes the stock attractive.

Price to Earnings using F(1) estimate less than X-Industry Median: The P/E ratio (F1) values a company based on its current share price relative to its estimated earnings per share — a lower ratio than the industry is considered better.

PEG less than 1: PEG links the P/E ratio to the future growth rate of the company. The PEG ratio portrays a more complete picture than the P/E ratio. A value of less than 1 indicates that the stock is undervalued, and investors need to pay less for a stock that has bright earnings growth prospects.

Current Price greater than or equal to $5: They must all be trading at a minimum of $5 or higher.

Average 20-Day Volume greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Zacks Rank less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform irrespective of the market environment.

Value Score equal to A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best opportunities in the value investing space.

5 Low Price-to-Book StocksHere are five of the 10 stocks that qualified for the screening: 

LA-based Hudson Pacific Properties is a full-service, vertically integrated real estate company focused on owning, operating and acquiring office properties and media and entertainment properties in select growth markets primarily in Northern and Southern California.  Hudson Pacific currently has a Zacks Rank #1 and a Value Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.

HPP has a projected 3-5-year EPS growth rate of 9.7%.

Herndon, VA-based Strategic Education, through its subsidiaries Strayer University and New York Code and Design Academy (NYCDA), provides a range of post-secondary education and other academic programs in the United States. NYCDA is a New York City-based provider of web and application software development courses. Strategic Education has a projected 3-5-year EPS growth rate of 15%.

STRA currently has a Zacks Rank #2 and a Value Score of A.

Orlando, FL-based Hilton Grand Vacations Company is a division of Hilton Worldwide. It is engaged in the hospitality business.  It markets and operates vacation ownership resorts and also manages and serves club membership programs.

HGV has a Zacks Rank #1 and a Value Score of B. HGV has a projected 3-5-year EPS growth rate of 22.0%. 

Luxembourg City, Brazil-based Nexa Resources is an integrated zinc producer. It is engaged in developing and operating mining and smelting assets, primarily in Latin America. NEXA currently has a Value Score of A and a Zacks Rank #2. NEXA has a projected 3-5-year EPS growth rate of 27.5%. 

Based in Phoenix, AZ, Avnet is one of the world’s largest distributors of electronic components and computer products. The company’s customer base includes original equipment manufacturers, electronic manufacturing services providers, original design manufacturers, and value-added resellers.

Avnet has a Zacks Rank #1 and a Value Score of B. AVT has a projected 3-5-year EPS growth rate of 28.1%.

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with Hudson Pacific Properties (HPP) and EastGroup Properties (EGP). But which of these two companies is the best option for those looking for undervalued stocks?

Investors in Hudson Pacific Properties, Inc. (HPP - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $22.50 Call had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for Hudson Pacific Properties shares, but what is the fundamental picture for the company? Currently, Hudson Pacific Properties is a Zacks Rank #1 (Strong Buy) in the REIT and Equity Trust – Other industry that ranks in the Top 36% of our Zacks Industry Rank. Over the last 30 days, the Zacks Consensus Estimate for the current quarter has moved from 22 cents per share to 24 cents in that period.

Given the way analysts feel about Hudson Pacific Properties right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

Investors looking for stocks in the REIT and Equity Trust - Other sector might want to consider either Hudson Pacific Properties (HPP - Free Report) or EastGroup Properties (EGP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Hudson Pacific Properties and EastGroup Properties are sporting Zacks Ranks of #1 (Strong Buy) and #3 (Hold), respectively, right now. This means that HPP's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

HPP currently has a forward P/E ratio of 13.24, while EGP has a forward P/E of 20.73. We also note that HPP has a PEG ratio of 1.12. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. EGP currently has a PEG ratio of 2.98.

Another notable valuation metric for HPP is its P/B ratio of 0.28. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, EGP has a P/B of 2.98.

These metrics, and several others, help HPP earn a Value grade of B, while EGP has been given a Value grade of D.

HPP stands above EGP thanks to its solid earnings outlook, and based on these valuation figures, we also feel that HPP is the superior value option right now.

Hudson Pacific Properties, Inc. (NYSE: HPP) today announced that its Board of Directors has declared a dividend for the second quarter of 2026 on its 4.750% Se

Hudson Pacific Properties, Inc. (NYSE: HPP) today announced a new 502,082-square-foot, 23-year lease with the City and County of San Francisco at 1455 Market S