Our analysis is based on comparing Hudson Pacific Properties, Inc. with the following peers – SL Green Realty Corp., Vornado Realty Trust, Mack-Cali Realty Corporation, Kilroy Realty Corporation, First Potomac Realty Trust, Corporate Office Properties Trust, Brandywine Realty Trust and Franklin Street Properties Corp. (SLG-US, VNO-US, CLI-US, KRC-US, FPO-US, OFC-US, BDN-US and FSP-US).
Hudson Pacific Properties, Inc.’s dividend yield is 2.32 percent and its dividend payout is 320 percent. This compares to a peer average dividend yield of 3.27 percent and a payout level of 58.49 percent. This combination of a relatively lower dividend yield and a higher payout ratio suggest that the dividend payout might not be sustainable. In addition, the low dividend quality score of 25 out of a possible score of 100, points to unsustainability as well.
Dividend Quality Overview
- Over the last twelve months (prior to December 31, 2016), HPP-US paid a medium quality dividend, which represents a yield of 2.32% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were medium quality and 1 was low quality.
- The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
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Over the last twelve months (prior to December 31, 2016), HPP-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 1.92x), investing cash flow (coverage of -4.46x), issuance cash flow (coverage of 3.84x) and twelve-month prior cash (coverage of 0.61x), for a total dividend coverage of 1.92x.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||2.32||2.37||1.74||3.02||2.48||2.32|
|Dividend Payout (%)||-121.95||-185.19||333.33||-302.63||320||320|
A complete list of metrics and analysis is available on the company page.
Hudson Pacific Properties, Inc. owns, operates, and acquires office, media, and entertainment properties. It operates through the Office Properties, and Media and Entertainment Properties segments. The Office Properties segment manages 54 office properties located in California and Pacific Northwest. The Media and Entertainment segment includes the Sunset Gower and Sunset Bronson properties. The company was founded on November 9, 2009 and is headquartered in Los Angeles, CA.
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