Hudson Pacific Sells Los Angeles Office Property
Hudson Pacific Properties (NYSE: HPP) has sold Maxwell, a non-core office property in the Los Angeles Arts District, for $46.0 million before prorations and closing costs. The company used the net proceeds to reduce its unsecured revolving credit facility debt.
Including the pending sale of Foothill Research Center expected to close in Q1 2024, HPP will have executed $93.8 million in non-core asset sales since mid-November 2023. The company expects to realize over $90 million in gross proceeds from closed non-core asset sales by the end of Q1 2025, with additional sales in process.
Hudson Pacific Properties (NYSE: HPP) ha venduto Maxwell, un immobile per uffici non strategico nel Distretto delle Arti di Los Angeles, per 46,0 milioni di dollari prima delle prorationi e dei costi di chiusura. L'azienda ha utilizzato il ricavato netto per ridurre il debito della sua linea di credito non garantita.
Inclusa la vendita in sospeso del Foothill Research Center, che dovrebbe concludersi nel primo trimestre del 2024, HPP avrà eseguito 93,8 milioni di dollari in vendite di beni non strategici dall metà di novembre 2023. L'azienda si aspetta di realizzare oltre 90 milioni di dollari di proventi lordi dalle vendite di beni non strategici chiuse entro la fine del primo trimestre del 2025, con ulteriori vendite in corso.
Hudson Pacific Properties (NYSE: HPP) ha vendido Maxwell, una propiedad de oficinas no esencial en el Distrito de Artes de Los Ángeles, por 46,0 millones de dólares antes de prorrateos y costos de cierre. La empresa utilizó el ingreso neto para reducir su deuda de línea de crédito rotativa no asegurada.
Incluyendo la venta pendiente del Foothill Research Center, que se espera cerrar en el primer trimestre de 2024, HPP habrá ejecutado 93,8 millones de dólares en ventas de activos no esenciales desde mediados de noviembre de 2023. La compañía espera realizar más de 90 millones de dólares en ingresos brutos de ventas de activos no esenciales cerradas para finales del primer trimestre de 2025, con ventas adicionales en proceso.
허드슨 퍼시픽 프로퍼티즈 (NYSE: HPP)가 로스앤젤레스 아트 지구에 있는 비핵심 오피스 자산 맥스웰을 4600만 달러에 매각했습니다(세금 및 마감 비용 제외). 회사는 순매출을 사용하여 무담보 회전 신용 시설의 부채를 줄였습니다.
2024년 1분기에 마감될 예정인 후티힐 연구 센터의 매각을 포함하면, HPP는 2023년 11월 중순 이후로 9380만 달러의 비핵심 자산 매각을 완료하게 됩니다. 회사는 2025년 1분기 말까지 마감된 비핵심 자산 매각으로부터 9000만 달러 이상의 총 수익을 실현할 것으로 예상하며, 추가 매각도 진행 중입니다.
Hudson Pacific Properties (NYSE: HPP) a vendu Maxwell, un bien immobilier de bureaux non stratégique dans le quartier artistique de Los Angeles, pour 46,0 millions de dollars avant proratas et frais de clôture. La société a utilisé le produit net pour réduire sa dette liée à sa ligne de crédit revolving non garantie.
En incluant la vente en attente du Foothill Research Center, qui devrait se clôturer au premier trimestre 2024, HPP aura réalisé 93,8 millions de dollars de ventes d'actifs non stratégiques depuis la mi-novembre 2023. L'entreprise prévoit de générer plus de 90 millions de dollars de produits bruts provenant de ventes d'actifs non stratégiques clôturées d'ici la fin du premier trimestre 2025, avec des ventes supplémentaires en cours.
Hudson Pacific Properties (NYSE: HPP) hat Maxwell, eine nicht zum Kerngeschäft gehörende Büroimmobilie im Kunstviertel von Los Angeles, für 46,0 Millionen Dollar vor Prorationen und Abschlusskosten verkauft. Das Unternehmen nutzte den Nettogewinn, um seine ungesicherte revolvierende Kreditfazilität zu reduzieren.
Inklusive des ausstehenden Verkaufs des Foothill Research Center, der im ersten Quartal 2024 abgeschlossen werden soll, wird HPP seit Mitte November 2023 93,8 Millionen Dollar an Verkäufen von nicht zum Kerngeschäft gehörenden Vermögenswerten durchgeführt haben. Das Unternehmen erwartet, bis Ende des ersten Quartals 2025 über 90 Millionen Dollar an Bruttoeinnahmen aus abgeschlossenen Verkäufen nicht zum Kerngeschäft gehörender Vermögenswerte zu realisieren, mit zusätzlichen Verkäufen in der Pipeline.
- Successfully sold Maxwell property for $46.0 million
- Total of $93.8 million in non-core asset sales since mid-November 2023
- Debt reduction through use of sale proceeds
- Additional non-core asset sales in pipeline
- Continued divestment of revenue-generating properties
Insights
The strategic divestment of non-core assets by Hudson Pacific Properties represents a well-timed execution of their portfolio optimization strategy. The
The company's decision to use the proceeds for debt reduction through their revolving credit facility is strategically sound in the current high-interest rate environment. This move should help improve their debt service coverage ratios and strengthen their balance sheet. The successful execution of these sales at what management describes as 'favorable pricing' is noteworthy, especially considering the challenging office real estate market conditions.
Several positive implications emerge from this announcement:
- The sales demonstrate HPP's ability to execute transactions in a difficult market environment, particularly for office properties
- The debt reduction strategy should result in immediate interest expense savings
- The focus on divesting non-core assets allows for better capital allocation toward core properties that align with their tech and media tenant strategy
- The announcement of additional planned sales suggests a clear strategic roadmap for further portfolio optimization
However, investors should monitor the impact on rental income streams and whether the proceeds from these sales are sufficient to meaningfully improve the company's leverage metrics. The success of this strategy will ultimately depend on management's ability to maintain occupancy rates in their remaining portfolio while executing additional non-core asset sales at favorable valuations.
Expects to Realize over
“We continue to make strong progress in our efforts to monetize non-core assets at favorable pricing and in a timely manner,” stated Victor Coleman, Chairman and CEO. “With the sale of
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.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250123730743/en/
Investor Contact
Laura
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
How much did Hudson Pacific Properties (HPP) sell the Maxwell office property for?
What is the total value of HPP's non-core asset sales since November 2023?
How will HPP use the proceeds from the Maxwell property sale?
When is HPP's Foothill Research Center sale expected to close?
What is HPP's target for gross proceeds from non-core asset sales by Q1 2025?
