Hudson Pacific Properties rises after "pivotal" $600 mln equity raise

Hudson Pacific Properties

12/06/2025 14:55

Updates stock activity, adds research analyst commentary

** Hudson Pacific Properties' HPP.N shares reverse premarket losses and last up 8.9% at $2.70, an over two-mth high, early Thurs after it raises equity

** Los Angeles-based office real estate investment trust early Thurs said sold ~269 mln shares, including ~71.9 mln pre-funded warrants for $600 mln gross raise

** Offering price of $2.23 represents 10.1% discount to stock's last close

** Cohen & Steers Capital Management indicated to buy up to $300 mln of the shares/warrants, per the SEC prospectus filing

** The REIT plans to use net proceeds to repay borrowings under its revolver, repay other debt and for general purposes

** BTIG, which rates HPP 'buy', says it views equity raise as a "pivotal moment" as it provides optionality to address remaining ~$1.8 bln of debt maturities over the coming five years "and buys time for strengthening office and (Hollywood) studio fundamentals to improve the company's cashflow profile"

** With ~141.5 mln shares outstanding, HPP had about $350 mln market cap through Weds

** BofA, Wells Fargo and RBC are lead joint-bookrunners for the offering

** Through Weds close, HPP shares had fallen 18% YTD and nearly 50% over the past 12 months

** Of 11 analysts covering HPP, recommendation breakdown is 3 "strong buy" or "buy", 7 "hold" and 1 "sell"; median PT is $2.50 - latest LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))