Douglas Emmett (DEI) Q1 2026 earnings summary

Executive summary

• Achieved record leasing with 461,000 sq ft of new leases and 100,000 sq ft positive absorption for the second consecutive quarter, marking the best six-month leasing results since 2019.

• Portfolio includes 18M sq ft of office and 4,410 multifamily units, with dominant market share in Los Angeles and Honolulu and a focus on high-barrier, premium markets.

• Multifamily segment saw full occupancy and 4.2% higher same property cash NOI year-over-year, with strong demand and premium rents.

• Completed a $260 million acquisition of a 246,000 sq ft medical office portfolio in Beverly Hills via joint venture, with a 13% equity stake and $130 million non-recourse debt.

• Redevelopment projects at Studio Plaza, The Landmark Residences, and 10900 Wilshire are progressing, with leasing underway and tenants moving in.

Financial highlights

• Q1 2026 revenues were $251 million, nearly flat year-over-year; net loss attributable to common stockholders was $(2) million, compared to $40 million net income in Q1 2025.

• FFO per fully diluted share was $0.37, down from $0.40 year-over-year; AFFO was $49 million, down from $62 million.

• Same property cash NOI decreased 1.4% year-over-year; office NOI declined 2.1%, while multifamily NOI increased 2.7%.

• Operating expenses increased 1.6% to $202 million, driven by higher property taxes, utilities, and administrative costs.

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

Outlook and guidance

• 2026 net loss per diluted share expected between $(0.20) and $(0.14); FFO per fully diluted share expected between $1.39 and $1.45.

• Average office occupancy guidance: 77%–79%; residential leased rate expected to remain essentially fully leased.

• Same property cash NOI expected to decline by 0.5% to 2.5% year-over-year; interest expense guidance revised to $272–$282 million.

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

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