Douglas Emmett, Inc.

What they do

The company owns, operates, acquires, and develops a substantial portfolio of office and multifamily properties. Its portfolio includes 18.2 million square feet of office space and 5,445 apartment units. Operations are concentrated in supply-constrained, premier coastal submarkets with significant market share.

Revenue drivers

• Office Rentals — Core office properties generate the majority of revenue. As of Q2 2026, the In-Service office portfolio was 80.3% leased and 75.6% occupied. Tenant industries include legal, financial services, and entertainment.
• Multifamily Rentals — In-Service multifamily portfolio had 4,410 units with a 99.4% leased rate as of Q2 2026. This segment reported 2.0% higher same-property cash NOI in Q2 2026 versus Q2 2025.
• Ground Leases — The company holds fee interests in two parcels of land from which it receives rent under ground leases.

Recent performance

In Q2 2026, total revenues were $256.5 million, with a net loss attributable to common stockholders of $(3) million. FFO per fully diluted share was $0.37, flat compared to Q2 2025, while AFFO was $56 million. Same-property cash NOI was $152 million in Q2 2026 versus $154 million in Q2 2025. For the six months ended June 30, 2026, quarterly revenue has trended upward from $250.6M in Q3 2025 to $256.5M in Q2 2026.

Strategy

The company focuses on concentrating high-quality properties in premier, supply-constrained submarkets, acquiring substantial market share, and using in-house leasing and construction services to manage its portfolio. It is actively pursuing development and repositioning projects, including the Landmark Residences (712 units) and 10900 Wilshire (up to 323 apartments). Recent zoning changes allow the company's entitled residential sites to accommodate 8,000-10,000 new units, which may drive future development. The company is also expanding in medical office properties, as seen in the Beverly Hills acquisition.

Risks

• Interest rate exposure — Higher market interest rates are expected to offset improvements in operating income, and the company's guidance reflects this pressure.
• Development execution — Major development projects like The Landmark Residences and 10900 Wilshire involve multi-year timelines and significant capital costs, with potential for delays or cost overruns.
• Office occupancy weakness — Office occupancy was 75.6% as of Q2 2026, and the company lowered its full-year occupancy guidance to between 75% and 77% due to including Studio Plaza.
• Concentration risk — The portfolio is highly concentrated in a few Los Angeles submarkets and Honolulu, which could be affected by local economic or real estate conditions.

Outlook

Management expects 2026 net loss per common share (diluted) to be between $(0.20) and $(0.16), and FFO per diluted share between $1.39 and $1.43. The guidance does not include future acquisitions, dispositions, financings, or impairments. Leasing momentum is expected to have a positive financial impact over the next twelve months, but higher interest rates are expected to partially offset operating income gains.