Boston, MA 08/07/2014 (wallstreetpr) – Hudson Pacific Properties Inc (NYSE:HPP) declared its Q2 financial results after market hours on July 5, which were considerably better than its performance in the same quarter of the previous year.
The total Funds from Operations realized was $19.8 million for this quarter. This works out to $0.28 per diluted share and is much higher than the $0.24 reported in the same period of the previous year. The Hudson Pacific Properties Inc (NYSE:HPP) has also announced a dividend of $0.125 per share. The outlook for the whole year is now at $1.12 to $1.16 per share instead of $1.08 to $1.12 per share.
The office properties segment was up by 40.2% to ongoing revenue of $52.9 million. This was made possible mainly on the account of the acquisitions made by the company. The quantum of offices leased by the company was 94.6% at the end of the last quarter. On the other hand the media and entertainment segment contributed just $9.2 million which was lower by 4.4%. The expenses however, were much lower by 9.2% at $5.8 million.
The twelve month trailing occupancy rate was lower was also lower to 69.9% from the prevailing 73.1%. The expenses incurred in this quarter include a payment of $1.1 million to one of its former executives for consultation, which is about $0.02 per diluted share. There was also an early payment made to Interactive Media Inc., which is about $0.02 per diluted share.
The net income of the company for this quarter was $3.4 million or $0.05 per share as compared to the loss reported in the same quarter in 2013, which was $6.2 million or $0.11 per share.
Very Productive Period
The Chairman, CEO and President, Victor J. Coleman while presenting the results highlighted the fact that the Hudson Pacific Properties Inc (NYSE:HPP) had a very productive quarter on account of signing several long term leases. In addition, Hudson Pacific was able to complete the sale of 112,300 square-feet of property located in San Diego for $19.5 million in an all cash deal.
The money obtained from this transaction was utilized in acquiring the company’s Merrill Place property with a reverse exchange under the Internal Revenue Code Section 1031. HPP was also successful in the completion of several new lease agreements and in the renewal of many existing leases to the tune of 267,000 square feet in this quarter.
The Market Street Property Steals the Show
The company’s 1155 Market Street property located in San Francisco witnessed some aggressive activity with UBER Technologies expanding their existing area by an additional 130,434 square feet. Another important deal was struck with Rocket Fuel, Inc. for a present office space of 24,438 square feet with a provision of another 24,438 square feet in the near future. With the execution of these two transactions, the 1155 Market Street property will be fully occupied and add to higher revenue growth.
Other Important Deals
The other important deals that were executed in this quarter include the 45,739 square feet seven year lease to Nerd Wallet, Inc at Hudson Pacific Properties Inc (NYSE:HPP)’s 901 Market Street property and the lease of 24,646 square feet of office space to McGraw Hill Global Education Holdings at their 83 King Street property in Seattle.