FINWIRES · TerminalLIVE
FINWIRES

Hudson Pacific Properties Could Take Years to Improve Leverage Ratio, BofA Securities Says

By

Hudson Pacific Properties' (HPP) leverage ratio is among the highest in its peer group, potentially taking years to improve amid refinancing headwinds, BofA Securities said in a Tuesday note.

BofA Securities estimated the company's leverage ratio at 13.7x as of fiscal Q1, versus the peer average of 8.0x. Elevated leverage puts the company at a disadvantage given the current higher interest rate environment, the brokerage noted.

Investors are also eyeing the approaching maturity of Hudson Pacific Properties' $1.1 billion Hollywood Media Portfolio CMBS loan in August, BofA Securities said.

And while the company benefited from better office fundamentals, especially in San Francisco, structural headwinds related to the Los Angeles entertainment sector are expected to persist through the near-medium term, the investment firm added.

BofA Securities downgraded Hudson Pacific Properties to underperform from neutral, and maintained its $14 price target.

Price: $14.60, Change: $-0.55, Percent Change: -3.63%

Related Articles

Wire

Adaptive Biotechnologies Weighs Separation of Immune Medicine Unit; Shares Fall After Hours

Adaptive Biotechnologies (ADPT) is evaluating strategic and structural alternatives for its immune medicine segment in a plan to separate the business from its minimal residual disease division.A decision on the separation is expected by year-end, the company said Monday in a statement.Adaptive shares fell 5.6% in after-hours trading.

$ADPT
Wire

High Tide Swings to Fiscal Q2 Profit, Revenue Rises; Shares Gain After Hours

High Tide (HITI) reported fiscal Q2 adjusted earnings late Monday of 0.01 Canadian dollars per diluted share, compared with the loss of C$0.04 a year earlier.Three analysts surveyed by FactSet expected a loss of C$0.02.Revenue in the three months ended April 30 rose to C$179.3 million from C$137.8 million a year ago.Analysts surveyed by FactSet expected C$171.2 million.High Tide shares rose 15% in after-hours trading.

$HITI
Wire

Dave & Buster's Entertainment Fiscal Q1 Adjusted Earnings, Revenue Decline

Dave & Buster's Entertainment (PLAY) reported fiscal Q1 non-GAAP net income late Monday of $0.22 per diluted share, down from $0.76 a year earlier.Analysts polled by FactSet expected $0.56.Revenue for the quarter ended May 5 was $559.2 million, down from $567.7 million a year earlier.Analysts expected $580.6 million.Shares of the company were down about 4% in after-hours trading.

$PLAY