Hudson Pacific Properties slides on $600 mln equity raise

Hudson Pacific Properties

12/06/2025 11:39

** Hudson Pacific Properties' HPP.N shares down 9.3% to $2.25 before the bell after equity raise news

** 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 offering shares, 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

** With ~141.5 mln shares outstanding, HPP has about $350 mln market cap

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

** Through Weds close, HPP shares down 18% YTD and have roughly halved 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))