* Note: Prices are in Million (M) USD.
Description:
Hudson Pacific Properties Inc. is a leading real estate investment trust (REIT) specializing in the ownership, management, and development of prime office and studio spaces in dynamic urban landscapes. With a robust portfolio encompassing around 19 million square feet and a focus on strategically situated development sites, the company is dedicated to sustainability and innovative design, thereby appealing to a diverse tenant base. Hudson Pacific's proven performance and strategic approach position it adeptly to leverage emerging opportunities within the commercial real estate landscape, making it a compelling choice for institutional investors seeking exposure to high-quality urban properties.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Note: Financial institutions (banks/insurers/brokers/REITs) are evaluated using sector, P/E, growth, ROE and other factors. The 3.5× Net Debt/EBITDA rule is skipped to avoid misleading signals; however, Cash/Debt/EBITDA are still displayed and counted for scoring.
Cash : $214 M
Debt : $3,621 M
EBITDA : $58 M
Net Debt (Debt - Cash): $3,407 M
This criteria used industry in which company operates:
Sector: Real estate
Industry: Reit - office
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 19 overlapping fiscal years (max 20).Average Free Cash Flow: $-131 M
Average Revenue: $467 M
Revenue Converted To Free Cash Flow (%): -28.1%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $842 M
Revenue 5 Years Ago (2019-12-31): $818 M
Total Growth over 5 Years: 2.9%
5-Year Revenue CAGR (Historical): 0.6%
Forward 5-Year CAGR (Tapered): 0.5%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $141 M
Share Count 5 Years Ago (2020-12-31): $153 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-0.73
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-0.73
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 19 valid ROE years (max 20).Average ROE: -16.7%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $1.95
52-Week Low: $1.78
Threshold Price (15% Above 52-Week Low): $2.05
Since Current price is within 15% threshold, 5 points assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $1,575 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-09-30): $0.29
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $1.00
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 15 points to above Hudson Pacific Properties Inc (HPP) stock.
Last 1 Years Avg PE 36.08, Fair Value PE 12, Industry Based PE 20, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 4 values, average assigned is 21.64. The fair value of Hudson Pacific Properties Inc (HPP) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
