Hudson Pacific Properties: The Golden Gate Glows As Leasing Ticks Up

2026-06-03 13:30:58 ET

Hudson Pacific Properties ( HPP ) rally could be set to continue as the long-beleaguered REIT sees leasing volume ramp as demand for prime office space in its core West Coast markets continues to rise. HPP closed 85 leases spread across 554,021 square feet during its fiscal 2026 first quarter. This was almost half split between new and renewal leases, with one of the largest individual leases a 59,000-square-foot renewal at HPP's Towers at Shore Center in Redwood Shores. GAAP rents on new leases were up 1.8% versus the year-ago level, while cash rents were down 2.4% . Critically, HPP's in-service office portfolio occupancy was up 150 basis points sequentially to 77.8%, while its leased rate grew to 78.4% from 77%. In view of bulls is a continued recovery of HPP's multiple to FFO, with a longer-term view being a reinstatement of the quarterly cash dividend. HPP last paid a quarterly cash dividend of $0.05 per share back in the summer of 2024. I last covered the ticker with a Hold rating in March to highlight demand from AI and tech firms driving positive office dynamics for San Francisco, with HPP up 84% since then. ...

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