Double-Checking The Credit Rating (Part 3): Hudson Pacific Properties

Summary

  • Hudson Pacific Properties offers high-quality office and studio spaces to tech and media tenants but faces significant market and credit risk.
  • Despite $8 billion in assets, HPP’s low market cap and asset coverage ratio reflect investor concerns about debt and earnings quality.
  • Credit ratings are weak due to high leverage and low EBITDA coverage, with Moody’s assigning a B1 equivalent rating after adjustments.
  • Preferred shares and bonds offer high yields, but these come with elevated risk given HPP’s challenging operating environment and sector headwinds.

Putting in some overtime

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Co-authored by Strategic Yield.

We continue our series with Hudson Pacific Properties, Inc. (NYSE:HPP), a REIT that serves dynamic technology and media tenants in global epicenters, providing high-quality and well-equipped office and studio spaces.

Overview

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