Victor Coleman’s Hudson Pacific Properties posts $218M loss
Yahoo Finance ·
Victor Coleman’s Hudson Pacific Properties posts $218M loss Alena Botros Thu, November 5, 2026 at 2:07 PM EST 3 min read NFLX -2.03% HPP -13.64% The losses keep on coming at Victor Coleman's Hudson Pacific Properties . The office and studio REIT posted a $218 million loss for the third quarter, worse than the $136.5 million same time last year. HPP blamed write-downs and losses on office deals in San Francisco. The deals, Coleman said on Thursday's call, "took largely vacant, capital-intensive assets off the books." Coleman also touched on the Netflix-Radford situation; the studio in the Valley the REIT owns with Blackstone, which is on the market in a lender-facilitated deal; and leasing. Netflix buying Radford Studio Center is "not a concern of ours," Coleman said on the call. Last quarter, Hudson announced it and Blackstone landed an extension on a billion-dollar maturity on their Hollywood media portfolio, which has offices and studios leased to Netflix. Netflix's leases end in five years, and the star tenant is close to buying a production campus of its own — which posed the question of whether the streaming giant would stay at Hudson's properties and if it would lose the tens of millions of dollars Netflix pays each year. Coleman, who has brushed it off before, said during Thursday's call that Netflix hasn't closed on Radford, that Radford wouldn't fit as a replacement for its offices and that their conversations about Netflix staying are "very fruitful and very productive." Another exec later said that extending the loan to next year gives HPP time to keep talking to Netflix. The JV's studio in the Valley hasn't been so lucky. As The Real Deal previously reported , a broker is shopping Hudson and Blackstone's empty, $200 million production campus on behalf of their lender. In its earnings package, Hudson said the JV ceased debt service payments on the non-recourse loan on the studio in the Valley because it wasn't making enough money as film and television shootdays in Los Angeles plummet. Hudson previously deconsolidated the asset. Coleman, on the Thursday call, said it may or not be in the portfolio in the future but that they are still trying to lease it. In the office realm, the REIT inked 74 leases in the third quarter totaling 534,000 square feet — split pretty evenly between new and renewals. That puts Hudson's office occupancy at about 86 percent, mostly thanks to the artificial intelligence and tech boom. Plus, it has a 2-million-square-foot leasing pipeline, half of which Coleman said is in advanced talks. Its studios, on the other hand, are about 75 percent leased. Hudson and Blackstone's Hollywood soundstages are standing strong with leasing at 95 percent — Netflix is still the star tenant, after all. Funds from operations, a measure REITs prefer, increased to around $21 million, compared to about $15 million for the same period last year. Can Victor Coleman save Hollywood real estate? Lender pushes for sale of Blackstone, Hudson Pacific's totally vacant Sun Valley studio
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