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Douglas Emmett, Inc. (NYSE:DEI) is included among the 15 Best 52-Week Low Dividend Stocks to Invest in. Cantor Fitzgerald Lowers Douglas Emmett (DEI) Price Target to $13, Maintains Neutral On November 6, Cantor Fitzgerald cut it‌s pr‍ice target on Douglas Emmett, Inc. (NYSE:DEI) t‍o $13 from $​16 while maintai⁠ni⁠ng a Neutral ra⁠ting on the stock, according to a report by The Fly. In‍ the company’s Q3 2025⁠ earnings repo‍rt, CEO Jordan Kaplan noted th‌at office lea⁠s‍ing during the quarter “was obv⁠ious ...

Group 1 - The year 2025 has been challenging for office REITs, leading landlords to offer tenant incentives and increase capital expenditures to maintain occupancy [1] - Despite attractive valuations, the office real estate sector is facing difficulties in retaining tenants [1] Group 2 - The author has a long-term investment approach, focusing on REITs, preferred stocks, and high-yield bonds, indicating a trend in investment strategies within the sector [1]

United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number: 001-33106 Douglas Emmett, Inc. (Exact name of registrant as specified in its charter) Maryland 20-3073047 (State or other juri ...

Core Insights - Douglas Emmett, Inc. (DEI) is a real estate investment trust (REIT) focusing on office and multifamily properties in Los Angeles and Honolulu, known for strategic acquisitions and high-quality property management [1] Financial Performance - DEI's stock price is currently $12.23, reflecting a decrease of 4.75% with a change of $0.61, and has fluctuated between $12.05 and $12.78 today [4] - Over the past year, DEI's stock has seen a high of $20.50 and a low of $12.05, indicating significant volatility [4] - The company maintains a market capitalization of approximately $2.05 billion [4] Analyst Insights - Alexander Goldfarb from Piper Sandler set a price target of $14 for DEI, suggesting a potential increase of about 14.47% from the current stock price [2] - The recent Q3 2025 earnings call provided valuable insights into DEI's operations and future direction, attended by analysts from major financial institutions [3] Market Activity - The trading volume for DEI on the NYSE is 3,012,170 shares, indicating active investor interest [5] - The price target set by Piper Sandler reflects confidence in DEI's ability to achieve growth and enhance shareholder value [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was flat at $251 million compared to Q3 2024, while FFO decreased to $0.34 per share and AFFO decreased to $52 million due to increased interest expenses outpacing operational contributions [10] - Same-property cash NOI increased by 3.5%, with multifamily showing a strong increase of 6.8% and office increasing by 2.6% [10] Business Line Data and Key Metrics Changes - Office leasing activity included 215 leases covering 840,000 sq ft, with approximately 200,000 sq ft being new leases, reflecting a slowdown in the latter half of the quarter [9] - Same-property cash NOI for the entire portfolio increased by 3.5%, driven by strong performance in the multifamily segment [10] Market Data and Key Metrics Changes - The multifamily segment in the company's portfolio did not experience the slowdown seen in other parts of LA County, with same-store cash NOI increasing almost 7% year-over-year [4] - Office rental rates and concessions remained steady, with the average office leasing cost at $5.63 per sq ft per year, below the average for other office REITs [9] Company Strategy and Development Direction - The company is focusing on expanding its multifamily portfolio, with two development projects in Brentwood and Westwood expected to add over 1,000 premium units [5] - Plans are in place to convert an existing office tower to apartments and build a new residential building, with construction expected to begin in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the fourth quarter's office leasing, noting that the slowdown in leasing activity was temporary [4] - The company continues to receive significant property tax refunds, which are expected to impact future financial performance, although the timing remains unpredictable [10] Other Important Information - The company refinanced almost $1.2 billion of debt at competitive rates, extending debt maturities and improving financial flexibility [5][6] - Management highlighted the importance of maintaining a strong tenant base and high renewal rates, with tenant retention above the long-term average of 70% [4] Q&A Session Summary Question: What did not materialize in the new leasing plan? - Management noted a general slowdown without being able to pinpoint specific markets or buildings, but indicated that the slowdown appeared temporary and leasing activity had picked up in October [14] Question: Are there considerations for stock buybacks or pruning the portfolio? - Management remains confident in both office and residential portfolios and is focused on growth rather than stock buybacks or asset sales [17] Question: Is the $74 million office expense a good run rate? - Management indicated that the $74 million includes both one-time and ongoing expenses, making it difficult to determine a clear run rate [22][23] Question: What industries are leasing well? - Management identified government as a weak sector, while most other sectors are performing well, with some optimism about UCLA's future leasing potential [26] Question: How will acquisitions be funded given the current stock price? - Management emphasized the use of positive cash flow and financing options, rather than issuing stock, to fund acquisitions [31] Question: What is the timeline for residential development projects? - Management indicated that several sites could be ready for development by the end of 2026, but emphasized the need to complete current projects first [39] Question: What opportunities exist with the upcoming Olympics? - Management noted that local improvements are being made in anticipation of the Olympics, which could enhance the area and benefit the company [58][59] Question: What is the status of leasing activity at Studio Plaza? - Management reported strong leasing activity at Studio Plaza, with various tenants showing interest and some already paying rent [61]

Portfolio Overview - Douglas Emmett's (DEI) office portfolio comprises 18 million square feet, representing 78% of total annual rent[13] - The multifamily portfolio consists of 4,410 units, accounting for 22% of total annual rent[13] - The company's total capitalization is approximately $7 billion, with annual revenues of approximately $1 billion[19] Market Position and Strategy - Douglas Emmett has approximately 39% average market share of Class A office space in its regions[19] - The company benefits from strong 3% to 5% annual rent increases in its leases[9] - Approximately 96% of DEI's leases are with tenants occupying less than 20,000 square feet[38] Financial Performance and Efficiency - Douglas Emmett's G&A expense as a percentage of NOI is 6.8%, allowing it to convert an extra 11.6% of NOI to cash flow compared to its benchmark group[45] - Recurring TI, LC, and Capex as a percentage of NOI is 14.2%, resulting in an extra 6.3% of NOI converted to cash flow compared to its benchmark group[45] - The company's annualized 2025 dividend is $0.76 per share[19] Sustainability - More than 84% of Douglas Emmett's eligible office space qualified for "ENERGY STAR Certification" as of December 2024[56] - The company has reduced its greenhouse gas emissions by 13% versus 2019 through December 31, 2024[56]

Core Insights - Douglas Emmett (DEI) reported revenue of $250.58 million for the quarter ended September 2025, reflecting a slight decline of 0.1% year-over-year, while EPS increased to $0.34 from $0.03 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $249.92 million by 0.27%, but the EPS met the consensus estimate without delivering a surprise [1] Revenue Breakdown - Total multifamily revenues were reported at $49.52 million, slightly below the two-analyst average estimate of $49.57 million, showing a year-over-year increase of 3% [4] - Total office revenues reached $201.06 million, surpassing the two-analyst average estimate of $200.32 million, but reflecting a year-over-year decline of 0.8% [4] Stock Performance - Over the past month, shares of Douglas Emmett have decreased by 15.1%, contrasting with a 2.1% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Douglas Emmett (DEI) reported quarterly funds from operations (FFO) of $0.34 per share, matching the Zacks Consensus Estimate, but down from $0.43 per share a year ago [1] - The company achieved revenues of $250.58 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.27%, although slightly lower than the previous year's revenues of $250.75 million [2] - The stock has underperformed, losing approximately 30.2% year-to-date compared to the S&P 500's gain of 16.5% [3] Financial Performance - FFO for the last quarter was $0.34 per share, consistent with expectations, and the company has surpassed consensus FFO estimates two times in the last four quarters [1] - Revenue for the quarter was $250.58 million, which is a slight decrease from the previous year's $250.75 million, but the company has topped consensus revenue estimates three times over the last four quarters [2] Future Outlook - The future performance of Douglas Emmett's stock will largely depend on management's commentary during the earnings call and the sustainability of FFO expectations [3][4] - Current consensus FFO estimate for the upcoming quarter is $0.36 on revenues of $253.76 million, and for the current fiscal year, it is $1.46 on revenues of $1.01 billion [7] - The Zacks Rank for Douglas Emmett is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The REIT and Equity Trust - Other industry is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The performance of Douglas Emmett may also be influenced by the overall industry outlook, as empirical research indicates that top-ranked industries outperform lower-ranked ones significantly [8]

Financial Performance - The company reported Q3 2025 revenues of $251 million, unchanged from Q3 2024, but net loss attributable to common stockholders was $(11) million compared to a profit of $5 million in the previous year[6]. - Funds from Operations (FFO) per fully diluted share decreased to $0.34 from $0.43 year-over-year, while Adjusted Funds from Operations (AFFO) fell to $52 million from $69 million[6]. - The company expects 2025 Net Income Per Common Share - Diluted to be between $0.07 and $0.11, and has narrowed its FFO guidance to a range of $1.43 to $1.47 per share[8]. - Total revenues for the three months ended September 30, 2025, were $250.58 million, a slight decrease of 0.1% compared to $250.75 million in the same period of 2024[27]. - Net loss attributable to common stockholders for the three months ended September 30, 2025, was $10.85 million, compared to a net income of $4.62 million in the same period of 2024[30]. - Funds From Operations (FFO) for the three months ended September 30, 2025, was $68.54 million, down 20.3% from $86.02 million in the same period of 2024[30]. - The company declared dividends of $0.19 per common share for both the three months ended September 30, 2025, and 2024[30]. - The AFFO payout ratio for the three months ended September 30, 2025, was 74.9%[18]. Property Performance - The same property cash Net Operating Income (NOI) increased to $150 million, up from $145 million in Q3 2024, reflecting a growth of approximately 3.4%[6]. - The multifamily portfolio maintained a high occupancy rate of 98.8%, with same property cash NOI growth of approximately 7%[6]. - Total Net Operating Income (NOI) for the three months ended September 30, 2025, increased by 2.8% to $152.86 million from $148.67 million in 2024[34]. - The ending percentage leased for office properties as of September 30, 2025, was 79.9%, down from 81.4% in 2024[34]. - Multifamily rental revenues for the three months ended September 30, 2025, were $49.52 million, an increase of 3.0% compared to $48.09 million in 2024[27]. - The company reported a cash NOI of $150.49 million for the three months ended September 30, 2025, representing a 3.5% increase from $145.40 million in 2024[34]. - NOI for Q3 2025 was $159,398 thousand, an increase from $155,987 thousand in Q3 2024, representing a growth of 2.9%[37]. - Same Property NOI for office segment in Q3 2025 was $120,718 thousand, up from $118,110 thousand in Q3 2024, reflecting a 2.2% increase[37]. Leasing Activity - The leasing activity for the total portfolio included 892,000 square feet of office space leased, with 251,000 square feet being new leases, which was below expectations[6]. - The company’s annualized rent across its office portfolio was $642,021,605, with a weighted average rent per leased square foot of $47.79[52]. - The office portfolio's overall occupancy rate was 79.8% as of September 30, 2025[52]. - The company holds a market share of 38.6% in its office portfolio regions[52]. - New leases signed during the quarter totaled 199,141 square feet, with a weighted average lease term of 61 months[79]. - The average cash rent for new leases was $48.74, reflecting an 11.4% decrease compared to the previous rate of $43.16[79]. - In the next twelve months, 1,963,149 square feet of leases are set to expire, representing 11.2% of the total portfolio[75]. Debt and Financing - The company closed a $200 million office term loan refinancing with a fixed interest rate of 5.6% through July 2030, maturing in July 2032[10]. - The total consolidated loans amounted to $5,602,462 thousand as of September 30, 2025[48]. - Interest expense for Q3 2025 was $72,809 thousand, compared to $56,824 thousand in Q3 2024, indicating a significant increase[37]. - The company has no loan maturities in 2025 and is actively working to refinance remaining 2026 loan maturities[7]. - Interest expense is expected to remain stable at approximately $260 million to $270 million[101]. Development Projects - The Landmark Residences redevelopment project is estimated to cost approximately $400 million and will take several years to complete[90]. - Studio Plaza in Burbank is undergoing redevelopment at an estimated cost of $75 million to $100 million, converting it into a multi-tenant building[93]. - The company is planning a 323-unit apartment community by converting an existing 247,000 square foot office building, with total project costs estimated between $200 million to $250 million[95]. - The first apartments from the existing office tower are expected to be delivered within the next 18 months, while the new building development will take approximately three years[95]. Market Outlook - Average office occupancy is expected to range from 78% to 79%, while the residential leased rate is anticipated to be essentially fully leased[101]. - Same property cash NOI is projected to decline between -1.0% to 0.0% compared to prior assumptions[101]. - The company expects above/below market net revenue to range from $1 million to $5 million, with straight-line revenue projected between $8 million to $11 million[101]. - The weighted average fully diluted shares outstanding is estimated to be 204.0 million[101]. - The company’s guidance does not account for future property acquisitions, common stock sales, or other capital market activities[102]. Portfolio Overview - As of September 30, 2025, the total portfolio includes 18 office properties totaling 4.6 million square feet and three residential properties with 793 apartments[134]. - The total rentable square feet as of September 30, 2025, is 13,832,542, which includes 397,757 square feet related to signed leases not commenced[129]. - The total available square feet as of September 30, 2025, is 3,544,071, indicating potential for future leasing opportunities[129]. - Recurring capital expenditures are reported to assess cash flow requirements and are focused on maintaining revenues for stabilized properties[127]. - The company uses same property NOI to analyze operating results consistently and compare performance with other REITs[132].