Hudson Pacific Raises 2026 Core FFO Outlook

The REIT lifted its full-year Core FFO guidance after third-quarter office occupancy and leasing improved.

Updated on Nov. 7, 2026 in Commercial

Bold vector editorial illustration of a stacked office block with mostly lit floors and a few dark upper floors, set against a plain cream field. — Hudson Pacific Properties raised its 2026 Core FFO outlook to $1.15 to $1.21 per share after third-quarter office occupancy rose 310 basis points to 85.6 percent. AI Illustration. Upload story photo >

Hudson Pacific Properties raised its 2026 Core FFO outlook to $1.15 to $1.21 per diluted share, up from $1.12 to $1.20. The company reported third-quarter in-service office occupancy of 85.6%, a gain of 310 basis points from the prior quarter.

Why it matters

The revised outlook reflects stronger demand for office space after a prolonged period of weak leasing across the sector. Improved occupancy and lease execution suggest the company is stabilizing its portfolio.

Hudson Pacific executed 74 office leases covering 533,708 square feet during the quarter. Core FFO is a non-GAAP measure that may not be comparable with similarly titled measures used by other REITs.

The players

Hudson Pacific Properties

A publicly traded real estate investment trust that owns and operates office and media properties primarily in the West Coast and Sunbelt markets.

The details

The improved average occupancy outlook reflected property sales and the temporary removal of Fourth & Traction from the portfolio. Core FFO for the quarter was $0.28 per diluted share, compared with $0.26 a year earlier.

2026: Core FFO outlook raised to $1.15 to $1.21 per diluted share.
Third quarter 2026: Occupancy reached 85.6% and 74 leases were executed.

Industry Dynamics

Core FFO is the standard earnings measure REITs use to report recurring operating results, and the revised guidance updates Hudson Pacific's prior 2026 range. The raise comes as office REITs report leasing results that show gradual stabilization after several difficult years.

For investors holding REIT shares, the raised outlook signals improved near-term earnings expectations for the company. Commercial tenants and brokers may see a tighter office leasing market as occupancy rises.

The takeaway

Rising office occupancy at a major REIT suggests the leasing market is firming in select submarkets, though investors should watch whether gains persist beyond property sales and portfolio changes.