Hello, everyone. Thank you for joining us, and welcome to the Hudson Pacific Properties, Inc. first quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Laura Campbell, Executive Vice President, Investor Relations and Marketing. Laura, please go ahead.

Morning, everyone. Thanks for joining us. With me on the call today are Victor J. Coleman, Chairman and CEO; Mark T. Lammas, President; Harout Krikor Diramerian, CFO; and Arthur X. Suazo, EVP of Leasing. This morning, we filed our earnings release and supplemental on an 8-K with the SEC, and both are now available on our website along with an audio webcast of this call for replay. Some of the information we will share on the call today is forward looking in nature. Please reference our earnings release and supplemental for statements regarding forward-looking information as well as the reconciliation of non-GAAP financial measures used on this call. Today, Victor will discuss our first quarter results and current market trends. Mark will provide detail on our office and studio operations. And Harout will review our financial results and updated 2026 outlook. Thereafter, we will be happy to take your questions. Victor?

Thanks, Laura. Good morning, and welcome, everyone, to our first quarter call. 2026 is off to a strong start. Building on decisive actions we took last year, we delivered improvement in both occupancy and cash flow, sequentially growing FFO, in total and on a per share basis. We signed over 500 thousand square feet of office leases, our third consecutive quarter of occupancy gains, supported by leasing pipelines that remain robust. On the studio side, prime locations are performing and operational streamlining at Coyote continues to drive annualized savings. We also achieved substantial year-over-year reductions in G&A, maintained total liquidity in excess of $930 million with our credit facility fully undrawn, and advanced an active pipeline of FFO-accretive dispositions. From a macro perspective, a record $267 billion of venture capital was deployed in the first quarter, fueled by large-scale AI financings and broad investment across adjacencies. That capital is translating into leasing activity. Well-funded tech and AI-focused companies are accelerating demand across our West Coast markets while more traditional office users are reengaging on either new leases or expansions. The Bay Area obviously is leading. San Francisco had a record 2.3 million square feet of positive absorption, capping the strongest six-quarter run of occupancy growth to date. Leasing activity reached 4.1 million square feet and AI-related tenants accounted for nearly 60% of total volume, and asking rents rose close to 4% year over year. Silicon Valley extended its momentum with a sixth consecutive quarter of occupancy growth. The Peninsula is also showing further signs of positive inflection, particularly in Redwood City and Foster City where our assets are concentrated. The Puget Sound posted its second consecutive quarter of positive absorption. Downtown Seattle is beginning to capture its share of AI and tech demand, and our portfolio quality positions us to benefit as activity further extends from the Eastside to the urban core. In Los Angeles, fundamentals remain challenged, but with our own limited near-term availability concentrated in one well-leased top-tier asset, we can be patient as conditions strengthen. Turning to studios, U.S. production activity remains subdued, but the flight to quality is real. Our Hollywood stages are 97% leased, and Sunset Pier 94 reached 100% leased within the first quarter of operations. The leasing results made it clear these are the right assets in the right locations. We are actively refining our studio portfolio to focus on the highest performing assets and lines of business. And on Coyote, we are making the necessary and, quite frankly, difficult decisions. As announced, Coyote will wind down leased soundstage facilities and Atlanta-area operations. We remain committed to ensuring Coyote is earnings-neutral by year end. On capital recycling, we are in various stages on asset sales targeting $200 million this year, and these are all FFO-accretive non-core dispositions. We have a buyer and agreed price at 10950 Washington as well as another asset under contract. As we look ahead, both occupancy and our leasing pipeline should remain strong. We are making the hard calls and continue to ensure our overhead is controlled, our disposition pipeline remains on track, and we have ample liquidity and a clear, executable path to FFO growth through the balance of the year. I will now turn the call over to Mark.

Thanks, Victor. Our leasing momentum continued to translate into tangible occupancy gains in the first quarter. We signed 554 thousand square feet of leases, 49% of which were new leases, driving our in-service office portfolio occupancy to 77.8%, up 150 basis points sequentially, and our lease rate to 78.4%, up 140 basis points sequentially. Occupancy improved across our core regions, except for Vancouver, where the lease percentage increased 110 basis points to 94.3%. On lease economics, GAAP rents increased 1.8% while cash rents declined 2.4%, representing sequential improvement in these metrics by 140 and 660 basis points, respectively. Net effective rents rose 4% sequentially though were down 2% year over year, with the latter comparison influenced by the large prior-year lease with the City and County at 1455 Market. We have excellent visibility into continued occupancy growth. Our leasing pipeline increased again to 2.4 million square feet, up 13% year over year, and we had 2.2 million square feet of tours in the quarter, up over 30% year over year. Our third lease with the City and County of San Francisco, which effectively absorbs the remaining vacancy at 1455 Market, remains on track to be finalized in the second quarter. We have close to 60% coverage—deals and leases, LOIs or proposals—on approximately 600 thousand square feet expiring for the remainder of the year, including full coverage on PayPal at Fourth & Traction and 80% coverage on Dell at 875 Howard. At Washington 1000, tenant interest has increased meaningfully. We now have coverage for approximately 60% of the project. To meet demand for prebuilt space, we will deliver 70 thousand square feet of move-in-ready suites in the second quarter. We are in late-stage negotiations with an amenity provider for the first and second floors to further enhance the property's marketability. Beyond that, we are in negotiations with seven office-using tenants, primarily growth-oriented tech and tech-enabled companies, with requirements ranging from under 10 thousand to over 100 thousand square feet. Turning to studios, our in-service stages were 72.8% leased over the trailing three months. Excluding Pier 94, which was placed in service this quarter and where stages went from 0% to 100% leased during the quarter, our in-service stages would have been 78.2% leased, up 370 basis points sequentially, driven by the lease-up of Sunset Las Palmas. As Victor noted, our Hollywood stages—Sunset Bronson, Gower and Las Palmas—were 97% leased over the trailing three months, up 280 basis points. Studio revenue was off $2.4 million sequentially, attributable to lower demand for Coyote's Lighting and Grip, Pro Supplies and Fleet. Despite expenses being $2.1 million lower, this led to a sequential $300 thousand decrease in studio NOI to $1.5 million. That said, Sunset Studio NOI, excluding Coyote, increased $1 million sequentially and was up $1.8 million year over year to $7.4 million, driven by the lease-up at Sunset Las Palmas and increased production activity at Sunset Bronson. On Coyote, the wind down of leased soundstage facilities and Atlanta-area operations would equate to approximately $5.8 million of annual cash NOI improvement. Finally, we continue to actively explore adaptive reuse opportunities across our portfolio. In the second quarter, we will submit for re-entitlement of 901 Market's 164 thousand-square-foot office component as residential with expected resolution by year end. We are also evaluating the potential to redevelop excess surface parking at select assets across Palo Alto, Redwood Shores, and Foster City as mixed use. These initiatives, along with others under evaluation, allow us to better align our portfolio with market demand while leveraging our deep entitlement and redevelopment expertise.

Thanks, Mark. I will now turn it over to Harout for the financials and outlook.

Thanks, Mark. I will walk through our first quarter results and updated 2026 outlook. Total revenues were $181.9 million compared to $198.5 million in the prior year, primarily due to the sale of Element LA and office tenant move-outs, most specifically Uber's departure from 1455 Market midway through 2025, with studio production activity remaining stable. G&A declined 32% to $12.6 million compared to $18.5 million in the prior year, further reflecting the progress we have made to streamline our cost structure. Core FFO increased to $16.5 million, or $0.25 per diluted share, up from $12.9 million, or $0.61 per diluted share, in the prior year. Adjustments to FFO totaled $1.5 million, or $0.02 per diluted share, compared to $9.8 million, or $0.47 per diluted share, in the prior year. Same-store cash NOI was $85.2 million compared to $92 million in the prior year, driven by lower office revenues from tenant move-outs—again, largely Uber's departure at 1455 Market—partially offset by higher studio revenue from increased production activity at our Hollywood assets. On our balance sheet, total liquidity of $933 million includes $138 million of cash and full availability of $795 million on our credit facility. Interest expense was 13% lower year over year, representing $5.5 million of savings, and all of our debt was fixed or capped. We continue to work with our partner on a resolution for the Hollywood Media portfolio loan maturity. Conversations with the lender as well as those with Netflix regarding their long-term space needs are productive and ongoing. Turning to our updated 2026 outlook, we are increasing our full-year core FFO range to $1.10 to $1.18 per diluted share, up from the prior range of $0.96 to $1.06. This revised range reflects two key drivers. First, approximately $0.04 of outperformance in the first quarter compared to our initial expectations. Super Bowl parking revenue, lower repairs and maintenance expense, and favorable CAM reconciliations account for the outperformance. Second, a $0.09 benefit from the reclassification of Coyote's leased soundstages and Atlanta-area operations as discontinued operations beginning in 2026. Note, the $0.09 benefit is based upon projections for the discontinued operations included in our previously provided full-year outlook. As always, our outlook excludes potential dispositions, acquisitions, or capital market activity. Victor?

Thanks, Harout. Let me bring it together. The first quarter demonstrates that our markets are recovering, but importantly, the deliberate decisions we are making ensure Hudson Pacific Properties, Inc. can capture this recovery better than most. Our outlook is up. Occupancy is growing. Prime studios are performing, and Coyote's drag is being addressed. And we are doing all this while keeping our liquidity and balance sheet intact. Each of these actions reinforces the same outcome: a clear and credible path to FFO growth through the balance of 2026. That is what we are committed to do. Thank you for your continued interest in HPP. Operator, now I would like you to open the line for any questions.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. To withdraw your question, please press star 1 again. Please pick up your handset when asking a question. If you are muted locally, please remember to unmute your device. Please stand by while we assemble our roster. Your first question is from Dylan Burzinski with Green Street. Please go ahead.

Hi, thanks for taking my questions. Can you talk about what you are seeing in the overall capital markets environment? Has pricing changed at all, and are you seeing any change to buyer appetite? And then, on the deal where you said you have pricing set, I think in the past you talked about various ways that could go, but it sounds like you are now going to fully dispose of that piece. Is that correct?

Dylan, thanks. We will take the second question first. On 10950 Washington, we are fully disposing of it. We indicated on our last call we had a series of offers on JVs and on outright sales. On the outright sale number that we have agreed upon and are about to go under contract with, the diligence time frame has been clicking. It is a deal that we felt was a good enough price—better than good enough—and it exceeded our expectations to where a JV structure would have been more applicable. So yes, we are selling that asset, and currently that is going very well. In terms of the overall marketplace, I can give you a high level in the three markets that we are in. Starting in Seattle, 505 First is an example—had a series of people that were interested at a fairly high price per foot on a leased asset where probably 50% of it needs repositioning in the marketplace. We were pleasantly surprised at the activity around that. There have been a couple of deals in Bellevue that are priced relatively aligned to what we would say is the new market cap rate pricing in the 5.5% to 6.5% range for stabilized, walled assets. And then people are looking right now at a couple assets in Seattle that are more buying vacancy. I think that trend started in the Bay Area, where we have seen quite a number of assets trade that are vacant assets and more inclined for value-add upside than we used to see with walled assets. But the material numbers in both those markets are still nowhere near peak activity. There are a few more coming to market—120 NDAs signed and a lot of activity—on a value-add asset in the Bay Area. So I think that is indicative of where the market is. Closer to home in Los Angeles, we are really seeing very little activity on the Westside, very little activity in all of the markets—even in the South Bay—of sales at this time. There are a couple of deals being tossed around at some good price-per-foot numbers, but not good yield numbers right now in the Southern California marketplace.

That is helpful, Victor. Appreciate the color. And then on overall demand, it sounds like things continue to pick up and you are seeing increased activity in Seattle coming out of Bellevue. What is causing the continued acceleration in leasing activity across your footprint?

As I mentioned in my prepared remarks, and Mark followed up on it, 50% plus of it is tech- and AI-related leasing activity. In Silicon Valley—from Foster City, Redwood City, Redwood Shores through Palo Alto, Mountain View, and even North San Jose—we are seeing an influx of larger tenants. Last quarter our team said there were six transactions over 100 thousand square feet, and two were 450 thousand square feet. That activity is taking space off the market. The kind of space getting taken is twofold: built-out, ready-to-occupy space, and space with energy efficiencies and additional power. Fortunately, we have an asset like that in North San Jose getting interesting activity because we have a lot of power there. In San Francisco, we see the same tech and AI-related trends. In Seattle, we are finally seeing Puget Sound’s positive absorption. It was led by Bellevue, and we are seeing activity consistently pick up quarter after quarter. In Los Angeles, it has definitely bottomed out. We have little exposure there, but what we do have is very active. We have a couple hundred thousand square feet of proposals in the marketplace today, and rates are as good as we have seen since 2019. Art, anything to add?

I think you covered it.

Great. Thanks.

Your next question is from Alexander Goldfarb with Piper Sandler. Please go ahead.

Good morning, and great to see vibrancy back in office. Two questions. First, Harout, can you go through the mechanics on the Coyote wind down and the $0.09 of discontinued ops—how that impacts guidance? I understand the outperformance, but just want more clarity on the $0.09.

Sure, Alex. Good morning. In our previous guidance, we had assumed $0.09 related to the items we are specifying and winding down. All we are doing is removing that from our continuing operations or core FFO. So on a go-forward basis, that is no longer going to drag earnings.

Got it. Second, Victor, bigger picture on Netflix—there was news a few weeks ago about possibly buying the Hackman CBS studio. Any color on what that would mean? I would appreciate your perspective.

With conversations around Netflix, out of deference to the tenant and our discussions with them, I cannot talk about what is going on, but suffice to say our relationship is intact and positive. On the Radford situation, it is a 21-soundstage facility really directed to production and creative production as a campus. There is very little office on that campus right now, and the office that is intact is leased to CBS for a long period. Whether or not they buy it is up to them, and it is going to be a campus facility for soundstages. It is not going to interfere with our relationship with them and our conversations going forward.

Thank you.

Your next question is from Seth Berge with Citi. Please go ahead.

Hi, thanks for taking my question. On Washington 1000, you mentioned increased activity, which is positive. Can you give some color on what stages those negotiations are in?

I will talk at a high level and let Art jump in. The activity has increased dramatically. We mentioned on our last call we were in the final phase this month of opening up our spec suites there, and activity around those has been very strong. We have a couple floors in negotiations. Ready space is getting interest because people want to move in quickly. The building is in phenomenal shape. The amenities we are putting in are well received. We are starting to see not just 15 thousand to 40 thousand-square-foot tenants, but now four or five over 100 thousand square feet where we are a first, second, or third choice.

Demand in Seattle has picked up tremendously. We are benefiting from tightness in Bellevue and from diminishing trophy sublease space that had been on the market. Tenants that were greater Puget Sound are now focusing on the downtown core. Tours have increased more in Seattle than anywhere else—up 20% quarter over quarter—and now Seattle represents 25% of our entire pipeline, which speaks to depth of demand and our team’s ability to pull deals forward. Washington 1000 is benefiting. We have seven deals in negotiation; four are on the move-in-ready suites Victor mentioned. Those suites deliver this month, and tenants are getting more excited as delivery approaches. These are high-growth tenants, mainly tech. On stages, they are all in negotiations. Two of the ready-built suite deals are in later-stage negotiations. We are not in leases yet, but with current momentum, we are hopeful to execute on the ready-built suites in the coming quarters.

More broadly on the pipeline, how much is AI tech demand, what is the average deal size, and any changes in conversion speed or late-stage versus early-stage?

It varies by market, but we are seeing a mix. Smaller deals include early-stage funding tenants, and we have captured some larger deals—50 thousand square feet or greater—but the bread and butter is closer to 10 thousand to 15 thousand square feet. Many smaller tenants want high-end, second-generation, ready-built, highly amenitized space, which is our wheelhouse. AI tenants have increased in our portfolio from about 10% of deals in negotiation or pipeline to about 25% of all tech deals, and it is higher in the Valley and San Francisco.

As I mentioned earlier, in the Bay Area we are benefiting from larger deals that finally came to fruition. Six deals were completed last quarter at big numbers, taking a lot of space off the market, which helps our portfolio and peers. We are seeing that impact immediately.

Great. Thank you.

Your next question is from Ronald Kamdem with Morgan Stanley. Please go ahead.

Two quick ones. First, on same-store NOI guidance, can you talk about cadence for the rest of the year and whether it is primarily driven by commencements?

Hey, Ron. Good talking to you. We previously said the first quarter would be our weakest, primarily driven by 1455 Market—Uber specifically—moving out last year, and that showed up. We expect the rest of the year to improve. We expect the second quarter to improve, maybe a bit weaker in the third quarter, then improve again in the fourth quarter. That is the cadence—overall much stronger than the first quarter.

Got it. On AFFO, it was negative because of elevated recurring CapEx. Any line of sight on when that CapEx run rate moderates, and how should we think about it?

Hi, Ron. Looking at the latest estimates, for the rest of the year it looks like it will average pretty close to where first-quarter TI/LCs and recurring CapEx shook out. If you do the math on core FFO for the balance of the year, it points to higher FFO per quarter than we posted in the first quarter. Assuming TIs/LCs/recurring are close to first-quarter results but FFO is modestly higher, our expectation is that AFFO for the balance of the year should be at least as good, if not modestly better, than first-quarter results.

Makes sense. Thank you.

Thanks, Ron.

Your next question is from Rich Anderson with Cantor Fitzgerald. Please go ahead.

Thanks. Good morning. Any impact from your disposition activity on the occupancy and lease-yield gains you saw during the quarter?

Not dispositions. As we announced a quarter ago, we are repositioning and re-entitling 901 Market, so we took footage off for repositioning just on the office component, and 6040 likewise is going to be fully repositioned. It was used for decades as a post-production facility. Neither of these assets is particularly big. They were in our fourth-quarter results and are not in our first. If you remove them to give an apples-to-apples comparison, you are still sequentially higher. The 150-basis-point lease-percentage increase drops to 140 if you pull 6040 and 901 out of the fourth quarter, and the 100-basis-point sequential occupancy increase drops to 80 without those two assets.

Okay, so 10 or 20 basis points of impact. On the wind down of Coyote, you mentioned $5.8 million of upside from exiting the leases. Are there potential one-time lease termination fees or other costs that could make it a nonlinear process?

We are going to wind down revenue and expense and manage that as cost-effectively as we can. Getting out of leases early often entails some kind of payment, so over the course of the year we will be incurring some expense associated with discontinuing those ongoing leases and other wind-down expenses toward that number.

At the end of the day, should we think of you keeping the fleet but not the leases, outside of Atlanta?

So far, based on what we have announced as discontinued ops, the fleet is still part of our continuing operations.

Last for me. You mentioned 60% coverage on the remaining 600 thousand square feet. How quickly can that ramp to triple digits—say, by next quarter—given the 2.4 million-square-foot pipeline?

The pipeline has grown to 2.4 million square feet. Of the remaining roughly 606 thousand square feet, about 70% is second half of the year. We are engaged earlier with smaller tenants averaging about 6 thousand square feet. Once we start negotiating with those tenants, we feel good we can increase that number, but some smaller tenants wait until closer to expiration. The good news is that we are engaged with them now, whereas during the pandemic there was little early discussion. They feel more confident today.

I would also emphasize we are just announcing first-quarter numbers. We have three more quarters. The expirations are spread out, and we have consistently increased occupancy quarter over quarter and signed at least a half-million-plus square feet a quarter. Matched to what we have done and foresee, the gap to June is not that material.

Fair enough. Thank you.

Your next question is from Andrew Berger with Bank of America. Please go ahead.

Good morning, and congratulations on the strong quarter. On Seattle, you have said it is typically 12 to 18 months behind San Francisco. How much of the improvement in Seattle is existing tenants getting more active versus new-to-market tenants? And are you seeing smaller AI tenants already in your Bay Area portfolio grow into Seattle?

Good question. We look at it on two levels. Name-brand tenants are entering or expanding in Seattle—Apple is in the marketplace, REI is in the marketplace. You are looking at Microsoft in the city and in Bellevue. Amazon has been contracting, but the big-name guys—xAI as an example—are in the marketplace. Now you are seeing a shift because of the labor pool, with smaller tech and tech-affiliated companies and support companies expanding. Bellevue has populated to a point where there is not a lot of quality space left, so they are coming to the city—in the core areas of South Lake Union, Denny, and Pioneer Square. In our pipeline, we have more tenants in the 15 thousand to 40 thousand range than we have had in a long time. There are a couple of large 100 thousand-square-footers, and their ability to execute quickly is tied to immediate access to space, which we are trying to accommodate. I have said on prior calls that Seattle is 12 to 18 months behind San Francisco. I would lean more to the 18 months than 12 months, but we are seeing it and it is on a positive trend. We should see it blossom this summer.

Thanks. On Bellevue, given the momentum there and the spillover to Seattle, is Bellevue a market you would like to have a presence in over the medium term? How would you think about strategy to enter?

For us to enter that marketplace, every time we have looked at it, the market has popped, and when we held off, it went the other way. As an owner in the area—we are a top-four owner in Seattle—it would make logical sense to eventually enter Bellevue at the right time. Right now, there is not a lot of product; what is there is being held and leased. Our goal in Seattle is to lease up our portfolio, and we are on track. Once we get through that, we will address expansion if that is the direction we want to go. Bellevue has proved to be very strong, and its benefactors have done well. We are hoping to see more flow to the city.

A reminder to analysts: if you wish to ask a question, please press star 1 to raise your hand. Our next question will be from Caitlin Burrows with Goldman Sachs. Please go ahead.

Hi, good morning. Staying on Seattle and Washington 1000, you mentioned seven deals in process, four for spec suites. For the other potentially larger leases—say, 100 thousand square feet or more—if they signed near term, how long would build-out take before move-in? One, six, twelve months?

Twelve months, call it.

Earlier you mentioned potential surface parking redevelopments in the Bay Area. Can you talk more about that? Is it retail-type outparcels, ground leases, or what are you thinking?

Many California cities are undersupplied on housing and are working with landowners to add density where there is land availability. We have several locations—Palo Alto, Redwood Shores, Foster City—where land configuration and municipal goals to add density line up well. We are exploring opportunities primarily to add density where we can. There may be limited opportunities for conversion, but the emphasis is on densification.

Thanks.

Your next question is from John Kim with BMO Capital Markets. Please go ahead.

Thank you. On your resi conversion at 901 Market, is it safe to assume you are planning to entitle for residential development and then sell to a developer? Can you discuss timing as well as other resi conversions you see either in your portfolio or in the city center?

We mentioned in our prepared remarks the timing for securing entitlements—we are targeting around year end.

John, we like 10950 and we are looking at Palo Alto; we will address our decision tree based on when we get entitlements. It will be worth a lot more once entitlements are in place. As Mark said, the process is ongoing and we feel good about year end. At that time, we will look at the market, the amount of product coming to market, and whether a JV, sale, or doing it ourselves makes the most sense, and make that determination then.

Can you clarify the statement on the City of San Francisco taking your remaining space at 1455 Market? What is the confidence level on signing, and does it impact your occupancy guidance for the year?

We have talked about that deal extensively. The impact on occupancy has been outlined. In terms of status, I do not see the pen in the hand of the mayor yet, but we hope it gets to that point relatively soon, and we are confident we will execute as we said this quarter.

Thank you.

There are no further questions at this time. I will now turn the call back to Victor Coleman, Chief Executive Officer and Chairman, for closing remarks.

Thank you very much for participating in today's call. I appreciate the team at Hudson Pacific Properties, Inc. for all the hard work. We look forward to talking to everybody next quarter.

This concludes today's call. Thank you for attending. You may now disconnect.