Hudson Pacific Reports Third Straight Year of Nine-Figure Losses
The office and production studio-focused REIT blamed production services and equipment provider Quixote, which it acquired in 2022
By Nick Trombola February 27, 2026 1:51 pm
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The largest public operator of soundstages in Los Angeles reported its third-straight year with a nine-figure annual loss in its latest earnings report, further signaling that distress is taking over Hollywood.
Hudson Pacific Properties (HPP), a real estate investment trust led by Victor Coleman that focuses on office and studio properties, posted $277.9 million in losses for the fourth quarter of 2025, bringing their year-end losses total to about $572.5 million. That figure has grown significantly each year since its purchase of soundstage and production equipment provider Quixote in 2022. The REIT posted a $354.1 million loss in 2024, a $192.2 million loss in 2023, and a $56.5 million loss in 2022, compared to just $6 million in losses in 2021.
HPP blames most of those losses on Quixote, for which it paid $360 million during the post-pandemic production boom. Yet the 2023 labor strikes, high California production costs, and entertainment consolidation have zapped Hollywood of its marquee business in recent years. HPP also owns L.A.’s Sunset Gower Studios, Sunset Las Palmas Studios and Sunset Bronson Studios, against which it has $500 million in commercial mortgage-backed securities debt coming due this year, according to The Real Deal, which first reported news of HPP’s earnings.
Twelve-month occupancy for Quixote soundstages, though up 500 basis points quarter-over-quarter, was just 53.3 percent at the tail end of 2025, Hudson President Mark Lammas said during the earnings call.
“We are evaluating additional targeted cost reductions to mitigate Quixote’s earnings drag by year end,” Lammas said during the call.
HPP plans to “manage down” Quixote to mitigate the REIT’s losses, Coleman added, telling investors that it will become a “flat business by the end of the year.”
Despite the Quixote drama, the REIT posted its best leasing year in the post-pandemic era, inking deals for more than 2 million square feet across its portfolio. HPP’s offices are currently 77 percent leased, and its studios are 67 percent leased, per its earnings.
In late December, HPP also earned $231 million from its sale of a creative office campus at 12333 West Olympic Boulevard in L.A. to tenant Riot Games. Riot paid $150 million for the property, as well as an $81 million lease termination fee. The REIT plans to sell more properties in the coming days as well, including the mixed-use 10900 and 10950 Washington Boulevard in Culver City. Hudson is targeting $200 million to $300 million of sales across 2026, Coleman said.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
