Hudson Pacific Properties’ headquarters in Los Angles
Hudson Pacific Properties is planning a reverse stock split.
The 7-1 split was approved by the company’s board of directors and will take effect Dec. 1.
Companies sometimes employ reverse stock splits when they are in danger of being delisted from one of the stock exchanges, as was the case with WeWork in 2023. There is no delisting notice filed for HPP with the Securities and Exchange Commission.
There are other reasons to elect to merge stocks, including boosting stock prices to attract investors, according to Nasdaq.
HPP’s stock price is above the $1 threshold that is required to be listed on the New York Stock Exchange, trading at $1.88 after market close Monday. The company’s stock has dropped by 44% year-over-year.
The REIT’s third-quarter earnings revealed a $136M loss, and while relief for the TV and film studio segment was forecast because of an expansion of California film credits, funds haven’t made their way to HPP’s coffers yet.
The company has struggled alongside the larger film industry, but offices have historically made up the majority of HPP’s net operating income. That sector, too, has struggled in the wake of the pandemic, though in the third quarter, HPP reported an uptick in leasing powered by a Bay Area bounce back.
