Hudson Pacific Properties: Beware The Perceived Discount

Hudson Pacific Properties, Inc. (NYSE:HPP) screens as extremely discounted, trading at less than 30% of Net Asset Value (NAV). While it is true, that discounted valuation provides a margin of safety, the magnitude of discount is a bit of an illusion. With a consensus NAV of $7.61 and the stock trading at$2.32, HPP appears to be trading at about 30% of NAV. However, the company as a whole is really trading at 88% of that same consensus asset value. Further, an 18% decline in asset value from the most recent ...