Hudson Pacific Properties, the Los Angeles-based landlord that straddles office towers and film studios, closed out 2025 with a bruising $572 million net loss after writing down part of its production-services arm, even as office leasing finally started to pick up. A steep fourth-quarter charge put studio operations squarely in the hot seat, while executives pointed to asset sales and balance-sheet maneuvers as their roadmap into 2026.
Quarter and annual numbers
In a year-end earnings release, Hudson Pacific reported a fourth-quarter net loss of $277.9 million and an annual net loss of about $572 million for the year ended December 31, 2025. Revenue for the quarter came in at $256.0 million, and specified items, including lease termination fees linked to asset sales, were enough to push FFO into negative territory. Business Wire also reported that Hudson Pacific closed nearly $330 million of dispositions in 2025 and finished the year with roughly $933.6 million of total liquidity.
Coleman’s take from the earnings release
“2025 was a breakthrough year for Hudson Pacific as we fundamentally transformed our capital structure and significantly enhanced our operating efficiency,” Chairman and CEO Victor Coleman said in the company’s earnings release. He reiterated that the firm plans to “eliminate Quixote’s earnings drag by year-end,” but did not provide a firm timeline or mechanism for doing so. The release also flagged that the company signed more than 2.2 million square feet of office leases in 2025, its strongest leasing performance since before the pandemic. Business Wire noted that office occupancy is on the upswing even as the studio side continues to lag.
Studio unit is the main drag
The Real Deal reports that Hudson Pacific pinned much of the earnings hit on Quixote, the production-services company it bought in 2022 for more than $360 million. Quixote rents out sound stages, cast trailers and other production gear, but a pullback in local production after labor disruptions, more cost-effective shoots overseas and ongoing media consolidation has weakened demand and produced the non-cash charges. According to the outlet, Coleman told investors he wants to remove Quixote’s earnings drag, though he stopped short of spelling out a clear exit strategy. The Real Deal also noted that the studio portfolio still trails the office side in leased percentage.
Asset sales and balance-sheet moves
Company filings show Hudson Pacific sold Element LA, a 284,000-square-foot West Los Angeles campus, for $150 million and collected an $81 million lease-termination payment in the process. Those proceeds were used to pay down $206 million of CMBS debt secured by the property. In total, the firm reported roughly $330 million of real-estate dispositions in 2025 and said those sales, together with capital markets transactions, helped extend its debt maturity runway and bolster liquidity. The Form 8-K and supplemental materials furnished to investors lay out property-level occupancy and detailed debt schedules that management says support its 2026 game plan. StockTitan hosts the 8-K, which includes the supplemental slide deck discussed on the earnings call.
Local ripple: studios and Silicon Beach
The Real Deal also reports that Hudson Pacific is marketing 10950 Washington in Culver City, a three-story office building with sound stages, for a potential residential redevelopment, and says the site has “very strong buyer and joint venture interest.” The outlet further notes that the company faces more than $500 million of debt maturing this year and that a Hollywood CMBS portfolio backed by several studio assets represents a significant point of exposure. That combination of improving office leasing on one side and studio-sector pain on the other leaves Hudson Pacific threading a tight needle between stabilizing its platform and selling off more assets.
For now, management is pitching a straightforward playbook: sell noncore properties, pay down secured debt and let office occupancy gains rebuild a steadier cash-flow base. The real test in the coming months will be whether Hudson Pacific can shed the Quixote drag without cutting so deeply into the studio footprint that helped define its West Coast presence in the first place.
