Hudson Pacific Properties Suspends Common Stock Dividend and Declares Preferred Stock Dividend

Rhea-AI Summary

Hudson Pacific Properties (NYSE: HPP) has suspended its quarterly dividend on common stock, starting with the third quarter dividend due in September 2024. This decision comes as studio demand recovers more slowly than expected following union strikes and negotiations. The company no longer anticipates a need for distribution related to taxable income in 2024.

However, HPP has declared a dividend on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share. This preferred stock dividend will be paid on September 30, 2024, to stockholders of record on September 20, 2024. The Board will continue to monitor the company's financial performance and operating environment to determine when to reinstate the common stock dividend.

Positive

• Preserving capital by suspending common stock dividend
• Maintaining preferred stock dividend payments
• Board actively monitoring financial performance for future dividend reinstatement

Negative

• Suspension of common stock dividend
• Slower than anticipated recovery in studio demand
• Challenging operating environment persists
• No anticipated need for distribution related to taxable income in 2024

LOS ANGELES--(BUSINESS WIRE)-- Hudson Pacific Properties, Inc. (NYSE: HPP) (the “Company”), a unique provider of end-to-end real estate solutions for tech and media tenants, today announced that its Board of Directors suspended the Company’s quarterly dividend on its common stock, commencing with the third quarter dividend that would have been paid in September 2024.

Chairman and Chief Executive Officer Victor Coleman said, “Studio demand has recovered more slowly than anticipated following the union strikes and negotiations, and we no longer foresee the need for a distribution in relation to taxable income in 2024. Our Board therefore made the decision to suspend our common stock dividend to preserve capital in an ongoing challenging environment.”

In addition, the Board declared a dividend on its 4.750% Series C cumulative preferred stock of $0.296875 per share, equivalent to an annual rate of $1.18750 per share, which will be paid on September 30, 2024 to preferred stockholders of record on September 20, 2024.

The Board will continue to monitor the Company’s financial performance and operating environment to determine the appropriate time to reinstate a quarterly common stock dividend.

About Hudson Pacific Properties

Hudson Pacific Properties (NYSE: HPP) is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific’s unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space. For more information visit HudsonPacificProperties.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events, or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, which may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission, or SEC, and other risks described in documents subsequently filed by the Company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240910742403/en/

Investor Contact

Laura Campbell

Executive Vice President, Investor Relations & Marketing

(310) 622-1702

lcampbell@hudsonppi.com

Media Contact

Laura Murray

Vice President, Communications

(310) 622-1781

lmurray@hudsonppi.com

Source: Hudson Pacific Properties, Inc.

FAQ

Why did Hudson Pacific Properties (HPP) suspend its common stock dividend?

HPP suspended its common stock dividend to preserve capital due to slower than anticipated recovery in studio demand following union strikes and negotiations, and the lack of need for distribution related to taxable income in 2024.

When will Hudson Pacific Properties (HPP) reinstate its common stock dividend?

The Board will continue to monitor HPP's financial performance and operating environment to determine the appropriate time to reinstate the quarterly common stock dividend. No specific date has been announced.

What is the dividend for Hudson Pacific Properties' (HPP) preferred stock?

HPP declared a dividend of $0.296875 per share on its 4.750% Series C cumulative preferred stock, equivalent to an annual rate of $1.18750 per share, payable on September 30, 2024.

How has the suspension of common stock dividend affected Hudson Pacific Properties (HPP)?

The suspension allows HPP to preserve capital in a challenging environment. However, it may impact common stockholders who rely on regular dividend income from their investment in the company.