Douglas Emmett downgraded at Scotiabank on weaker new office leasing pace

As previously reported, Scotiabank analyst Nicholas Yulico downgraded Douglas Emmett (DEI) to Sector Perform from Outperform with a price target of $12.50, down from $16, as the firm shifts its subsector and stock preferences ahead of Q4 earnings season for the REITs. The firm, which is modestly lowering its 2026 FFO per share estimate to be about 6% below the Street due to assumed weaker new office leasing pace and occupancy, finds it “hard to gain confidence” that leasing volume will pick up based on last year’s track record and a sluggish Los Angeles economy.