Hudson Pacific Properties executives forfeit 2024 equity awards

Published 18/06/2025, 23:36
 Hudson Pacific Properties executives forfeit 2024 equity awards

Hudson Pacific Properties, Inc. (NYSE:HPP), a $1.09 billion market cap real estate investment trust whose stock has declined about 42% over the past year, announced that three top executives have voluntarily forfeited their 2024 performance unit equity awards, according to an SEC filing released Wednesday.

Chief Executive Officer Victor Coleman, President Mark Lammas, and Chief Financial Officer Harout Diramerian gave up the awards in a move that will generate $14.3 million in total general and administrative savings for the real estate company.

Approximately $4.9 million of these savings will be realized during the current fiscal year, with the remaining amount to be distributed over the next three years, the company stated.

The decision was previously announced but formally disclosed in the 8-K filing dated June 17, 2025. The filing did not provide details regarding the rationale behind the executives’ decision to forfeit their performance awards.

Hudson Pacific Properties is a real estate investment trust headquartered in Los Angeles, California, that owns and operates office and studio properties primarily on the West Coast. The company’s stock has shown recent momentum with a 14% gain over the past week, though InvestingPro’s Fair Value analysis suggests the shares may be overvalued at current levels.

In other recent news, Hudson Pacific Properties announced a significant $600 million public offering of common stock and pre-funded warrants, with Cohen & Steers Capital Management expressing interest in purchasing up to $300 million of the offering. This move aims to address financial concerns by repaying debt and supporting general corporate purposes. Concurrently, BMO Capital lowered its price target for Hudson (NYSE:HUD) Pacific to $3.50, citing the dilutive nature of the equity offering but maintaining an Outperform rating due to reduced insolvency risks. In addition, S&P Global Ratings downgraded Hudson Pacific’s credit rating to ’B’ from ’BB-’ due to high leverage and challenging market conditions. The company’s debt to EBITDA ratio has increased, and its fixed-charge coverage has declined, reflecting weakened performance in its office and studio segments. Meanwhile, Hudson Pacific executives have forfeited their 2024 performance unit equity awards, resulting in $14.3 million in general and administrative savings. Furthermore, the company expanded its incentive plan, allowing for additional shares and extending the grant award period, following approval from stockholders. These developments highlight Hudson Pacific’s ongoing efforts to navigate financial challenges and align employee interests with those of stockholders.

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