Douglas Emmett (DEI) Q2 2025 earnings summary

Executive summary

• Achieved strong leasing results with 973,000 sq ft of office space leased in Q2, including over 300,000 sq ft of new leases, and multifamily portfolio nearly fully leased at 99.3% with over 10% same property cash NOI growth year-over-year.

• Portfolio includes 17.5M–18M sq ft of Class A office and 4,410–5,442 apartment units, with additional development and acquisitions expanding scale.

• Consolidation of Partnership X JV and acquisition of 10900 Wilshire Boulevard contributed to portfolio growth and financial results.

• Announced $200–$250 million conversion of 10900 Wilshire office property into 320 apartments in Westwood, expected to enhance value and reduce office vacancy.

• Operates a fully integrated platform focused on high-barrier Los Angeles and Honolulu markets, targeting small affluent tenants for risk mitigation and stable cash flows.

Financial highlights

• Q2 2025 revenues were $252.4 million, up 2.7% year-over-year, driven by higher multifamily occupancy and rental rates, and contributions from new and consolidated properties.

• Net loss attributable to common stockholders was $(5.8)–$(6) million for Q2 2025, compared to net income of $10.9–$11 million in Q2 2024, reflecting higher expenses and interest costs.

• FFO per fully diluted share was $0.37, down from $0.46 year-over-year; AFFO was $54–$54.5 million, down from $74 million.

• Same property cash NOI was $151–$152.6 million, down 1.1%–2.3% year-over-year.

• Quarterly dividend of $0.19 per share paid, annualized at $0.76.

Outlook and guidance

• 2025 net income per diluted share expected between $0.07 and $0.11.

• FFO per fully diluted share guidance narrowed to $1.43–$1.47.

• Full-year average office occupancy guidance remains at 78%–80%; residential portfolio expected to remain essentially fully leased.

• Same property cash NOI guidance range: -2.5% to -0.5%.

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