Hudson Pacific Properties suspended its common shareholder dividend due to rising vacancy rates and weak demand for studio space post-2023 Hollywood strikes. HPP's Q3 2024 revenue dropped 13.4% year-over-year, missing estimates by $12.7 million, while FFO fell to $0.11 per share. The Company faces significant debt maturities, with $600 million due in 2025 and $976 million in 2026, amid a challenging San Francisco office market.
Hudson Pacific Properties has faced significant challenges, particularly in its office and studio segments, but its current valuation presents an attractive risk-reward proposition for patient investors. The company's portfolio of Class A office properties, primarily in Coastal markets, is showing signs of recovery with increasing leasing activity and stable rent economics. The studio business, despite current underperformance, has potential for substantial NOI growth, especially with the proposed expansion of California's film tax credit program.
Kris Bennatti, Hudson Labs CEO and co-founder, joins 'Fast Money' to talk its red flags it saw in Super Micro years ago.
Despite a 36% drop in Hudson Technologies' stock, I remain long, buying more after a 20% post-earnings drop due to strong fundamentals. Hudson holds 35% of the refrigerant reclamation market, benefiting from the AIM Act's phase down of virgin HFC production, ensuring long-term demand for reclaimed refrigerants. Financials show a 19% YoY revenue decline and margin pressure, but Hudson's balance sheet is strong with $56.5M in cash, no debt, and a buyback program.
Hudson Technologies, Inc. (NASDAQ:HDSN ) Q3 2024 Earnings Conference Call November 4, 2024 5:00 PM ET Company Participants Jen Belodeau - Investor Relations Brian Coleman - President & Chief Executive Officer Brian Bertaux - Chief Financial Officer Conference Call Participants Ryan Sigdahl - Craig-Hallum Austin Moeller - Canaccord Operator Greetings. Welcome to the Hudson Technologies Third Quarter 2024 Earnings Call.
Hudson Technologies (HDSN) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.34 per share a year ago.
HDSN provides reclaimed refrigerants to LG, demonstrating its dedication to responsible and sustainable refrigerant management techniques.
Hudson Pacific Properties has faced headwinds from rising office vacancy in the San Francisco Bay Area. The Series C Preferreds currently offer a 9.3% yield on cost and are trading at a reasonable discount to their liquidation value. HPP faces a $600 million debt maturity due next year and $952.8 million in 2026 as leases covering 18.9% of its rent are set to expire next year.
Famed investor Michael Burry, renowned for his prescient bet against the U.S. housing market prior to the 2008 financial crisis, has made a strategic move in Q2 2024 by initiating a new position in Hudson Pacific Properties Inc (NYSE: HPP).
HPP.PR.C shares dropped 20% since last article, while the common shares have fallen only 2%. HPP occupancy rate dropped year over year to 78.7%. We examine the setup after the Q2-2024 results and the outlook downgrade by the company.
Management's 3Q FFO guidance of $0.08-$0.12 disappointed REIT investors. Studio rentals continue to be weak even after various union contracts were settled. There is the risk that Hudson Pacific Properties could be in violation of debt covenants in the future.
Cheap stocks are often cheap for a reason. That bit of investing wisdom underscores the need to perform due diligence on a company and not just buy it because the stock trades at a low price.