Hudson Pacific Properties: West Coast Office Vacancies Remain Elevated

2025-09-24 16:28:47 ET

Hudson Pacific Properties, Inc.'s ( HPP ) preferreds might be deeply discounted, but an occupancy rate on the rise and set to move higher in response to an immense wall of upcoming lease expirations renders a position in them as too high-risk. The West Coast office-focused REIT became a poster boy for the long-term negative ramifications of the pandemic on demand for office space. It has seen its commons and preferreds stage a tepid recovery from 52-week lows, with the latter less risky against following a June equity offering that allowed the REIT to raise a material $690 million gross. HPP sold warrants and 197.2 million common shares at a price of $2.23 per share. This was at a premium to its share price before the news of the upcoming offering was published, with Cohen & Steers, Inc. ( CNS ) acting as a cornerstone investor with $300 million invested on behalf of its clients to take up 43% of HPP’s offering....

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