(Bloomberg) -- Hudson Pacific Properties Inc., a major landlord for the movie and television industry, is suspending its dividend amid slower demand for studio space.
The company operates about 95 sound stages, many in joint ventures with Blackstone Inc., and 1,800 production vehicles, according to its website. In 2023, HPP cut its dividend and then suspended it as a Hollywood writers’ strike reduced demand for space. It reinstated the common stock dividend earlier this year.
“Studio demand has recovered more slowly than anticipated following the union strikes and negotiations,” Chief Executive Officer Victor Coleman said in a statement Tuesday. “Our board therefore made the decision to suspend our common stock dividend to preserve capital in an ongoing challenging environment.”
HPP shares were down 4.8% to $4.53 at 9:56 a.m. New York time. They have tumbled about 51% since the beginning of the year.
The Los Angeles-based real estate investment trust derives more than 80% of its revenue from office properties, which have also been losing value since the pandemic.
--With assistance from John Gittelsohn.
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