Hudson Pacific Properties, Inc. · NYSE:HPP
Hudson Pacific Properties — Nareit REITWeek 2024
15 slides from Hudson Pacific Properties's conference presentation, Jun 3, 2024
Slide 1: Investor Update | Nareit REITWeek
Investor Update | Nareit REITWeek June 2024
Slide 2: Positive U.S. Office Sector Trends Continue
Positive U.S. Office Sector Trends Continue Multiple positive occupier trends pointing to the potential for improved office leasing demand and more limited supply of high-quality product extending to HPP markets Tenant Gross Gross Development Requirements Leasing Activity Sublease Additions Pipeline
Slide 3: Office Leasing Green Shoots in HPP Markets
Office Leasing Green Shoots in HPP Markets HPP’s markets are showing signs of stabilizing, such as increased or consistent tenant demand, declining or stable sublease vacancy, and diminishing new supply pipelines Positive Market Trends – 1Q24 v. 4Q23 (Unless Otherwise Indicated) San W. Los San Silic
Slide 4: San Francisco's Revitalization Effort Underway
San Francisco’s Revitalization Effort Underway Mayor Breed’s Roadmap to San Francisco’s Future is yielding positive results, with the City showing progress and resiliency contrary to negative headlines Public New HPP Ferry Building Tourism Shifting Safety Efforts Businesses Delivering Launching Rebo
Slide 5: San Francisco AI Leasing on Pace for Another Strong Year
San Francisco AI Leasing on Pace for Another Strong Year YTD AI companies leased 228K sq ft with another 825K sq ft of requirements currently in the market with Bay Area targeted AI VC funding continuing to fuel growth Record 1.7M Sq Ft of San Francisco AI Bay Area Received 78% of ~$10B US AI Leasin
Slide 6: HPP 2Q Leasing Activity Remains Strong
HPP 2Q Leasing Activity Remains Strong HPP is on track for another solid leasing quarter based on signed leases, as well as deals in- leases or LOI, with new deals now comprising the majority of activity QTD Leasing Activity Status Even After Apr-May Leasing Current Pipeline Increased 10% to 2.0M Sq
Slide 7: HPP's Success in Capturing Small Tenant Demand
HPP’s Success in Capturing Small Tenant Demand At 411 First in Pioneer Square, HPP leveraged spec suites to capture a disproportionate share of leasing from small, high-quality tenants—an ongoing strategy for other assets / markets HPP Signed 91K Sq Ft of Leases Over 8 Quarters Taking 411 First from
Slide 8: HPP Portfolio Aligns with Tenant Preferences
HPP Portfolio Aligns with Tenant Preferences HPP has already invested capital to appropriately reposition most assets with the modern features and amenities essential to accelerate leasing in the current market climate Office Rent Premium Associated with Different Amenities1 (Based on Class A in Sam
Slide 9: JLL Analysis Underscores HPP's High-Quality Portfolio
JLL Analysis Underscores HPP’s High-Quality Portfolio HPP engaged JLL to leverage its national tiering framework and create custom local-market tiering forecasts for each of HPP’s assets and markets Better Asset Quality Tier 3-4 + Higher Quality Location Tier 1-2 + Higher Quality Location Total: 17%
Slide 10: Studio-Related Union Negotiations Progressing
Studio-Related Union Negotiations Progressing Productive negotiations continue with AMPTP regarding EO July contract expirations and IATSE/Teamsters have underscored their desire to not extend negotiations past that deadline Contract Membership Expiration Negotiations On June 1, IATSE Status2 intern
Slide 11: Studio Business Continuing to Ramp Up
Studio Business Continuing to Ramp Up HPP leased or has activity on ~80% of stage square footage, inclusive of recently delivered Sunset Glenoaks, while transportation utilization and revenue continue to improve Film & TV Stages Leasing Activity Snapshot Total Leased Coverage* Holds** % of Wtd. Avg.
Slide 12: Appendix
Appendix UDSON 12
Slide 13: JLL Asset & Location Tiering Framework
JLL Asset & Location Tiering Framework JLL National Asset Tiering Framework JLL’s original study applied to 2.5B sq ft across top 20 MSAs, A and B Assets, 100K+ sq ft buildings Tier Criteria % of Sq Ft Tier 1 – Lifestyle, Experiential 2015+ Vintage 10% 45% of JLL’s 2.5B Tier 2 – Highly 2000-2014 bui
Slide 14: Disclaimer
Disclaimer Hudson Pacific Properties, Inc. is referred to herein as the “Company,” “Hudson Pacific,” “HPP,” “we,” “us,” or “our.” This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Slide 15: HudsonPacificProperties.com
HudsonPacificProperties.com