Hudson Pacific Properties Inc

Hudson Pacific Properties announced Friday that it and its joint venture partner have extended the $1.1 billion CMBS loan secured by the Hollywood Media Portfolio. The extension pushes the loan's maturity to November 9, 2027, with the stated interest rate unchanged and no principal paydown required at closing. As part of the deal, the joint venture will reallocate partnership funds to a $20 million leasing reserve at closing, with excess cash flow from the portfolio swept into the reserve to fund ongoing capital needs over the loan term. Hudson Pacific also entered into a derivative to swap SOFR at 3.50% through maturity, and reported interest expense will include fees and costs tied to the extension and derivative. CFO Harout Diramerian said the extension underscores the company's ability to deliver a positive outcome for shareholders and gives it additional time and flexibility to advance its leasing strategy across the portfolio while managing its broader debt maturity schedule.

Hudson Pacific Properties reported record second-quarter leasing and raised its full-year core FFO guidance. The company signed 1.3 million square feet of new and renewal office leases, including a landmark 891,000 square-foot 24-year lease with the City and County of San Francisco at 1455 Market. Occupancy increased 470 basis points to 82.5%, and same-store cash NOI grew 7.5% to $90.2 million. Core FFO nearly tripled to $23.1 million, or $0.35 per diluted share, up 30% from the prior year. Hudson Pacific raised its 2026 core FFO guidance to a range of $1.12 to $1.20 per diluted share, up from $1.10 to $1.18.

Zacks Equity Research identifies Pebblebrook Hotel Trust, Hudson Pacific Properties and STAG Industrial as equity REITs well-positioned to benefit from rising demand for AI-ready infrastructure, high-quality industrial assets, lodging properties and modern office spaces. The REIT and Equity Trust - Other industry carries a Zacks Industry Rank of 67, placing it in the top 27% of 246 industries, supported by upward revisions in aggregate funds from operations per share estimates. Hudson Pacific, a Zacks Rank #1 Strong Buy, focuses on West Coast office and studio assets with about 12.9 million square feet of in-service office space and 45 studio stages, and its consensus 2026 FFO per share estimate has been revised upward to $1.05. Pebblebrook Hotel Trust, also a Zacks Rank #1, operates 43 luxury and upper-upscale hotels totaling around 10,900 guest rooms, with a 2026 FFO per share consensus of $1.68, revised 2.4% higher over the past month. STAG Industrial, a Zacks Rank #2 Buy, owns 601 industrial buildings spanning about 120.3 million square feet across 41 states, with a 2026 FFO per share consensus of $2.64, marginally raised over the past month.