Douglas Emmett (DEI) Q1 2026 earnings summary

Executive summary

• Achieved approximately 100,000 sq ft of positive absorption for the second consecutive quarter, marking the best six-month leasing results since 2019 with lease rates up over 1%.

• Executed a record 450,000+ sq ft of new leases, with strong activity from tenants over 10,000 sq ft and meaningful straight-line rent rollout.

• Completed two acquisitions, including a $260 million purchase of premium medical office properties in Beverly Hills, and remain focused on portfolio expansion at discounts to long-term value.

• Reported a net loss attributable to common stockholders of $2.5 million for Q1 2026, compared to net income of $39.8 million in Q1 2025, primarily due to lower office occupancy, higher interest and administrative expenses, and a one-time $47.2 million gain from JV consolidation in the prior year.

• Operates a fully integrated platform with in-house leasing, legal, construction, and design, focusing on high-barrier Los Angeles and Honolulu markets.

Financial highlights

• Revenue for Q1 2026 remained essentially flat at $251 million compared to Q1 2025.

• FFO decreased to $0.37 per share; AFFO declined to $49 million due to higher interest expense and lower interest income, partially offset by strong multifamily performance.

• Same-property cash NOI decreased 1.4% year-over-year; office NOI down 2.1%, multifamily NOI up 2.7%.

• Office segment revenues declined 1% to $200.5 million, while multifamily revenues rose 2% to $50.4 million.

• G&A expenses at 5.4% of revenue, the lowest among benchmark peers.

Outlook and guidance

• 2026 diluted net income per share expected between -$0.20 and -$0.14; fully diluted FFO per share projected between $1.39 and $1.45.

• Management expects to meet short-term liquidity needs through cash on hand and operations, with refinancing planned for upcoming debt maturities.

• Expects continued strong rent growth and low volatility due to limited new supply and high barriers to entry.

• Sustainability goals include maintaining over 80% ENERGY STAR certification and reducing GHG emissions by 30% by 2035 (already achieved 28% reduction by 2025).

• Guidance excludes impacts from future acquisitions, dispositions, financings, or other capital market activities.