DEI · Douglas Emmett, Inc.

Douglas Emmett reported a net loss of $2.5 million for Q1 2026, compared to net income of $39.8 million in Q1 2025, primarily due to a $47.2 million gain from consolidation of a joint venture in the prior year. Revenue was essentially flat at $251 million. FFO per share declined to $0.37 from $0.40, while AFFO fell to $49 million from $62 million. Same Property Cash NOI decreased to $152 million from $155 million, driven by lower office rental revenues. However, the multifamily segment showed strength with 4.2% same property cash NOI growth. Leasing activity was robust: the company executed a record 461,000 square feet of new leases, including record leasing to tenants over 10,000 square feet, and achieved positive absorption for the second consecutive quarter. The straight-line rent roll-up was 5.3%, reflecting fixed rent bumps. In April, a joint venture acquired The Bedford Collection, a 246,000-square-foot medical office portfolio in Beverly Hills for $260 million, with Douglas Emmett holding a 13% equity stake. The company paid a quarterly dividend of $0.19 per share. For full year 2026, management guided net loss per share of $(0.20) to $(0.14) and FFO per share of $1.39 to $1.45, noting that FFO gains from the Bedford acquisition will be largely offset by higher interest expense. The guidance excludes future acquisitions, dispositions, and capital markets activities.