Douglas Emmett (DEI) Q3 2025 earnings summary

Executive summary

• Leasing activity in Q3 was below expectations, with a strong July followed by a slowdown in August and September; tenant retention remained above 70%.

• Portfolio includes 70 office properties (17.98M sq ft) and 15 multifamily properties (5,445 units) in Los Angeles County and Honolulu as of September 30, 2025.

• Multifamily portfolio outperformed, with same-store cash NOI up nearly 7% year-over-year, and overall same-property cash NOI up 3.5%.

• Holds dominant market share in Class A office space, with a 39% average share in its regions and is the largest office landlord in Los Angeles and Honolulu.

• Focuses on high-quality office and multifamily properties in Los Angeles and Honolulu's premier coastal submarkets.

Financial highlights

• Q3 revenue was flat at $251 million compared to the prior year.

• Total revenues for the nine months ended September 30, 2025 were $754.5M, up 1.8% year-over-year.

• FFO decreased to $0.34 per share in Q3; AFFO fell to $52 million due to higher interest expense.

• Q3 2025 FFO was $68.5M, down 20.3% from $86.0M in Q3 2024.

• G&A expenses remained low at 4.3% of revenue.

Outlook and guidance

• 2025 net income per diluted share is expected between $0.07 and $0.11; FFO per fully diluted share is projected between $1.43 and $1.47.

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

• Management expects to meet short-term liquidity needs through cash on hand and operations; long-term needs will be met through secured non-recourse debt, equity issuance, and property transactions.