Hudson Pacific Properties, Inc. (HPP): A Bull Case Theory 

We came across a bullish thesis on Hudson Pacific Properties, Inc. on Cundill Deep Value’s Substack by FRAGMENTS. In this article, we will summarize the bulls’ thesis on HPP. Hudson Pacific Properties, Inc.’s share was trading at $1.9800 as of December 1st. HPP’s trailing and forward P/E were 159.93 and 6.32 respectively according to Yahoo Finance.

Hudson Pacific Properties (HPP) has long been undervalued, not due to operational failure, but because its balance sheet constrained growth despite owning irreplaceable assets like Hollywood studios and high-value office towers. The market had priced the company as if these properties were worthless, creating a deep disconnect between intrinsic and market value.

That narrative began to change in mid-2025 when Cohen & Steers (C&S), a leading real assets investor, injected $300 million into HPP. This investment was part of a larger $690 million recapitalization through common shares and pre-funded warrants at $2.23 per unit, with C&S taking roughly 43% of the raise, representing about 17–18% of the fully diluted company.

Notably, the investment came without board representation, disclosed lock-ups, or activist headlines, signaling confidence in the management team’s strategy rather than a takeover attempt. The move reflects a recognition that HPP’s assets—studios, office towers, and other real estate—have significant, underappreciated value that can be unlocked over time through asset sales, refinancing opportunities, and strategic monetization.

The C&S investment serves as a powerful validation that deep value persists when capital is patient and strategic. For investors, this creates a compelling opportunity: HPP now has a strengthened balance sheet and a credible recapitalization roadmap, positioning it to realize the intrinsic value of its high-quality, hard-to-replace properties. The market, which had long ignored this potential, may now reprice HPP, offering significant upside for those willing to recognize the structural and financial improvements underpinning the company’s turnaround.

Previously we covered a bearish thesis on Hudson Pacific Properties, Inc. (HPP) by Waterboy Investing in September 2024, which highlighted the company’s over-leveraged balance sheet, San Francisco exposure, declining occupancy, and looming debt maturities. The company’s stock price has depreciated approximately by 62.28% since our coverage. This is because the thesis played out amid continued market skepticism. FRAGMENTS shares a contrarian view, emphasizing the value unlocked through Cohen & Steers’ $300 million recapitalization.

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Disclosure: None.