Download PDF

1. Company Snapshot

1.a. Company Description

Douglas Emmett, Inc.(DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu.Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

Show Full description

1.b. Last Insights on DEI

Douglas Emmett's recent performance was negatively impacted by a decline in same-store NOI (Net Operating Income) of 3.1%, driven by a 2.2% decrease in base rents and a 2.3% increase in operating expenses. While the company beat FFO estimates, its Q4 earnings were marred by a decrease in property operations and a higher operating expense ratio.

1.c. Company Highlights

2. Douglas Emmett's Q4 2025 Earnings: A Strong Performance Amidst a Challenging Market

Douglas Emmett, Inc. reported a revenue of $249 million, a 1.8% increase from 2024, with FFO decreasing to $0.35 per share and AFFO at $53 million. The company's actual EPS came out at $0.35, in line with estimates. The multifamily segment saw a 5% increase in same-property cash NOI, driven by strong demand and a nearly fully leased residential portfolio.

Publication Date: Feb -15

📋 Highlights
  • Revenue Growth:: Achieved $249 million in revenue, a 1.8% increase from 2024.
  • Office Absorption:: Recorded 100,000 sq ft of net positive absorption in Q4 2025.
  • Residential NOI Growth:: 5% increase in same-property cash NOI for the multifamily segment.
  • 2026 Guidance:: Anticipates net income per share between -$0.20 and -$0.14 but FFO per share between $1.39 and $1.45.
  • Leasing Activity:: Signed 896 office leases totaling 3.4 million sq ft, with 30% being new tenants.

Operational Highlights

The company signed 896 office leases totaling 3.4 million square feet during the year, with a diversified tenant demand across industries. The office leasing activity was robust, with 30% of leasing being new, a reliable indicator of positive quarters. The company's residential portfolio remains essentially fully leased, with a cash same-property NOI up 5% compared to the prior year.

Strategic Initiatives

Douglas Emmett is focused on growing through acquisitions with joint venture partners, rather than increasing leverage to buy back stock. The company has made substantial progress on several key capital market objectives, including acquiring 10900 Wilshire and executing almost $2 billion in debt transactions at competitive rates. CEO Jordan Kaplan expressed confidence in the long-term fundamentals of their markets, the quality of their portfolio and balance sheet, and their operating team.

Guidance and Outlook

The company guides for net income per common share diluted to be between negative $0.20 and negative $0.14 and FFO per fully diluted share to be between $1.39 and $1.45 for 2026. The 2026 cash same-store NOI guidance assumes stable leasing spreads, with contractual rent bumps of 3-5% per year. Analysts estimate next year's revenue growth at 2.5%.

Valuation

With a P/E Ratio of 104.08 and a Dividend Yield of 7.52%, the stock appears to be priced for stability and income. The company's ROE is relatively low at 0.82%, but its ROIC is high at 43.28%, indicating efficient use of capital. The Net Debt / EBITDA ratio is 8.7, suggesting a significant debt burden.

Market Trends and Risks

The company is well-positioned to navigate industry trends, including consolidation in the media space, and is not expecting a negative impact on their leasing business. The anti-rent gouging ordinance in LA has not had a material impact on the company's business, and most rent increases for existing tenants have been in the 5-7% range, below the 10% threshold that triggers the law.

3. NewsRoom

Card image cap

Citigroup Inc. Lowers Position in Douglas Emmett, Inc. $DEI

Mar -08

Source: defenseworld.net

Card image cap

Douglas Emmett (NYSE:DEI) Sets New 52-Week Low Following Analyst Downgrade

Mar -04

Source: defenseworld.net

Card image cap

Douglas Emmett, Inc. (DEI) Presents at Citi's Miami Global Property CEO Conference 2026 Transcript

Mar -03

Source: seekingalpha.com

Card image cap

Douglas Emmett to Present at 2026 Citi Global Property CEO Conference

Feb -24

Source: businesswire.com

Card image cap

First Eagle Global Real Assets Fund Q4 2025 Portfolio Review

Feb -23

Source: seekingalpha.com

Card image cap

Park Hotels & Resorts (NYSE:PK) versus Douglas Emmett (NYSE:DEI) Critical Review

Feb -14

Source: defenseworld.net

Card image cap

Douglas Emmett, Inc. (DEI) Q4 2025 Earnings Call Transcript

Feb -11

Source: seekingalpha.com

Card image cap

Douglas Emmett, Inc. $DEI Shares Sold by Allianz Asset Management GmbH

Feb -11

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.82%)

6. Segments

Office

Expected Growth: 1.8%

Douglas Emmett's 1.8% office segment growth is driven by strong demand in Los Angeles and Honolulu, fueled by the thriving tech and healthcare industries. Additionally, the company's strategic acquisitions and renovations have enhanced its portfolio, attracting high-quality tenants and increasing rental rates.

Multifamily

Expected Growth: 1.9%

Douglas Emmett's multifamily segment growth of 1.9% is driven by strong demand for luxury apartments in coastal California and Hawaii, fueled by job growth, limited supply, and increasing renter demographics. Additionally, the company's value-add initiatives, such as unit renovations and amenity upgrades, contribute to higher rents and occupancy rates.

7. Detailed Products

Office Properties

Douglas Emmett, Inc. owns and operates a diverse portfolio of office properties, including Class A and B office buildings, in prime locations.

Multifamily Properties

The company's multifamily portfolio consists of luxury apartments and condominiums in desirable locations, offering residents upscale amenities and services.

Suburban Office Parks

Douglas Emmett's suburban office parks offer a campus-like setting with amenities such as parking, fitness centers, and outdoor spaces.

Medical Office Buildings

The company's medical office buildings cater to healthcare professionals and medical organizations, providing convenient and accessible locations.

Retail and Restaurant Space

Douglas Emmett's retail and restaurant spaces are located in high-traffic areas, offering prime locations for retailers and restaurateurs.

8. Douglas Emmett, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Douglas Emmett, Inc. is medium due to the availability of alternative office spaces and flexible work arrangements.

Bargaining Power Of Customers

The bargaining power of customers is low for Douglas Emmett, Inc. as the company has a diverse tenant base and long-term leases.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Douglas Emmett, Inc. as the company relies on a few large contractors and suppliers for its development projects.

Threat Of New Entrants

The threat of new entrants is low for Douglas Emmett, Inc. due to the high barriers to entry in the office real estate market, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Douglas Emmett, Inc. due to the competitive office real estate market in Los Angeles and the presence of several large competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 71.40%
Debt Cost 9.27%
Equity Weight 28.60%
Equity Cost 9.27%
WACC 9.27%
Leverage 249.71%

11. Quality Control: Douglas Emmett, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
COPT Defense

A-Score: 6.3/10

Value: 4.5

Growth: 4.7

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Kilroy Realty

A-Score: 6.3/10

Value: 5.5

Growth: 3.9

Quality: 5.8

Yield: 8.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Boston Properties

A-Score: 5.4/10

Value: 5.7

Growth: 3.2

Quality: 4.1

Yield: 8.0

Momentum: 4.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Vornado Realty

A-Score: 5.2/10

Value: 7.4

Growth: 2.2

Quality: 6.6

Yield: 6.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Douglas Emmett

A-Score: 4.9/10

Value: 4.7

Growth: 4.6

Quality: 3.3

Yield: 9.0

Momentum: 1.5

Volatility: 6.3

1-Year Total Return ->

View Full Report
Stock-Card
SL Green Realty

A-Score: 3.9/10

Value: 2.5

Growth: 0.9

Quality: 3.8

Yield: 9.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.09$

Current Price

10.09$

Potential

-0.00%

Expected Cash-Flows