Hudson Pacific Properties, Inc. (NYSE:HPP) Q2 2023 Earnings Conference Call August 2, 2023 12:00 PM ET

Company Participants

Laura Campbell - EVP, IR & Marketing

Victor Coleman - CEO and Chairman

Mark Lammas - President

Harout Krikor Diramerian - CFO

Jeff Stotland - EVP, Global Studios

Arthur Suazo - EVP, Leasing

Conference Call Participants

Alexander Goldfarb - Piper Sandler

Blaine Heck - Wells Fargo

Nicholas Yulico - Scotiabank

Michael Griffin - Citi

John Kim - BMO Capital Markets

Julien Blouin - Goldman Sachs

Camille Bonnel - Bank of America Merrill Lynch

Dylan Robert Burzinski - Green Street

Ronald Kamdem - Morgan Stanley

[Transcript later provided by the company]

Operator

Good morning, and welcome to the Hudson Pacific Properties Second Quarter 2020 Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Laura Campbell, Executive Vice President, Investor Relations and Marketing. Please go ahead.

Laura Campbell

Good morning, everyone. Thanks for joining us. With me on the call today are Victor Coleman, CEO and Chairman; Mark Lammas, President; Harout Diramerian, CFO; and Art Suazo, EVP of Leasing. Yesterday we filed our earnings release and supplemental on an 8-K with the SEC, and both are now available on our website. Our audio webcast of this call will be available for replay on our website. Some of the information we’ll share on the call today is forward-looking in nature.

reference our earnings release and supplemental for statements regarding forward-looking information as well as a reconciliation of non-GAAP financial measures used on this call. Today, Victor will discuss macro conditions in relation to our business. Mark will provide detail on our office and studio operations and development, and Harout will review our financial results and 2023 outlook. Thereafter, we’ll be happy to take your questions. Victor?

Victor Coleman

Thanks, Laura. Good morning, everybody, and thanks for joining our call. During the second quarter, we worked diligently to position Hudson Pacific optimally as we continue to navigate the unprecedented confluence of an unfavorable macroeconomic environment, the lingering impacts of remote work and, most recently, a historic and prolonged studio union strike. Office fundamentals across the West Coast markets remained challenged in the second quarter, with gross leasing either flat or decelerating quarter-over-quarter, sublease activity either stable or rising, and negative net absorption in all but Vancouver.

As expected, studio production in Los Angeles slowed significantly, with shoot days in the quarter falling 60% to 70% year-over-year for TV comedies and dramas, and 20% to 25% across film, unscripted TV, commercials and photoshoots.