2025-06-11-花旗集团-哈德逊太平洋地产（HPP）_哈德逊太平洋地产（HPP.N）_股权发行及其他公司行动的模型更新_11页_465kb

Citi Research maintains a Neutral rating on Hudson Pacific Properties (HPP.N), citing concerns about the office sector amid hybrid work trends and elevated vacancy rates in West Coast markets. Key points from the analysis include:

• The company announced an equity offering of approximately $662M, priced at $2.23 per share, reflecting a discount to the FactSet consensus NAV of $2.48. Proceeds will be used for debt repayment, extending credit commitments through December 31, 2029.

• HPP updated its FY 2025 G&A outlook to $58M-$63M and long-term G&A to $50M-$55M. Forward financials show declining EPS and FFO expectations due to challenges in the studio business and occupancy.

• The target price is $2.50, implying an 8x multiple of 2025E FFO. Citi views the timing of the equity offering positively for recapitalization but is mindful of dilution.

• Risks highlighted include portfolio concentration in San Francisco (over 50% of ABR), tech industry reliance, interest rate risks, and ongoing studio business uncertainties. A potential recession or continued sector headwinds could negatively impact performance.

• HPP focuses on improving leverage through stabilized properties, particularly Washington 1000, and operational efficiencies. Despite upbeat leasing indicators, fundamental headwinds sustain a Neutral stance.