Douglas Emmett (DEI)
NYSE:DEI
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Douglas Emmett
(NYSE:DEI)
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Rating:45Neutral
Price Target:
$9.00
▼(-3.64% Downside)
Action:ReiteratedDate:02/21/26
DEI scores low-to-mid primarily due to a leveraged financial profile with thin/volatile profitability and weakened cash-to-debt coverage, despite steady operating cash flow. Technicals also detract, with the stock below major moving averages and negative MACD. A high dividend yield helps valuation, but it is offset by a very high P/E. Earnings call commentary shows leasing and multifamily strength, but cautious 2026 guidance and higher interest expense pressure the near-term outlook.
Positive Factors
Consistent Cash Generation
Reliable operating cash flow over multiple years provides a durable funding base for dividend distributions, maintenance capex, and redevelopment. For a REIT with elevated leverage, steady OCF stabilizes liquidity, underpins investment in value‑add projects, and reduces reliance on dilutive equity issuance.
Negative Factors
High Leverage
A capital structure skewed toward debt reduces financial flexibility and raises refinancing risk if rates stay elevated. Declining equity amplifies leverage ratios and limits capacity for opportunistic acquisitions or large buybacks, forcing prioritization of debt service and development funding over shareholder returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent Cash Generation
Reliable operating cash flow over multiple years provides a durable funding base for dividend distributions, maintenance capex, and redevelopment. For a REIT with elevated leverage, steady OCF stabilizes liquidity, underpins investment in value‑add projects, and reduces reliance on dilutive equity issuance.
Read all positive factors
Douglas Emmett (DEI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.62B
Dividend Yield6.45%
Average Volume (3M)2.25M
Price to Earnings (P/E)―
Beta (1Y)0.94
Revenue Growth-0.12%
EPS GrowthN/A
CountryUS
Employees770
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.04
Shares Outstanding167,462,220
10 Day Avg. Volume2,067,206
30 Day Avg. Volume2,252,821
Financial Highlights & Ratios
PEG Ratio-4.47
Price to Book (P/B)0.97
Price to Sales (P/S)1.83
P/FCF Ratio9.46
Enterprise Value/Market Cap4.22
Enterprise Value/Revenue6.82
Enterprise Value/Gross Profit15.57
Enterprise Value/Ebitda10.54
Forecast
1Y Price Target
$11.36Price Target Upside21.60% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$1.01B
Douglas Emmett Business Overview & Revenue Model
Company Description
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal ...
How the Company Makes Money
Douglas Emmett makes money primarily by generating recurring rental income from tenants in its office buildings and multifamily apartment communities. Revenue is largely driven by (1) office leasing: collecting base rent under lease agreements and...
Douglas Emmett Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down rental and related income across segments so you can see where the company earns most of its money. Shifts in revenue mix highlight growth opportunities or concentration risks tied to specific property types or markets.
Breaks down rental and related income across segments so you can see where the company earns most of its money. Shifts in revenue mix highlight growth opportunities or concentration risks tied to specific property types or markets.
Data provided by:
The Fly
The FlyDouglas Emmett Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Neutral
The call presented a mix of operational momentum and near-term financial headwinds. Highlights include strong leasing activity (104k sq ft positive absorption in Q4; 3.4M sf leased in 2025), robust multifamily performance (+~5% same-property cash NOI; full occupancy), active development pipeline and strategic acquisitions (10900 Wilshire, Landmark Residences, Studio Plaza conversion), and successful capital markets execution (nearly $2B in debt transactions, $1.66B refinanced). Offsetting these positives are rising interest expense that pressured FFO/AFFO (FFO down to $0.35/share; AFFO $53M), a 1.4% decline in same-property cash NOI for the quarter driven by higher office operating expenses, and cautious 2026 guidance (net income guidance negative and FFO guided to $1.39–$1.45) that assumes no occupancy growth. Management emphasizes balance sheet prudence, preference for JV-backed acquisitions over share buybacks, and the impact of seasonality and regulatory/political costs. Overall, operational gains and a sizeable development/acquisition pipeline are balanced by near-term financing and expense pressures.Positive Updates
Positive Office Absorption and Strong Leasing Activity
Achieved positive net office absorption of approximately 104,000 square feet in Q4; signed 224 office leases covering 906,000 square feet in the quarter (274,000 sf new leases, 632,000 sf renewals). For all of 2025 signed 896 office leases totaling 3.4 million square feet. New leasing comprised roughly 30% of activity in the quarter, and expansions outpaced contractions.
Negative Updates
FFO and AFFO Pressure
FFO decreased to $0.35 per share and AFFO decreased to $53 million for the quarter, driven in part by increased interest expense and lower interest income despite multifamily strength.
Read all updates
Q4-2025 Updates
Positive
Negative
Positive Office Absorption and Strong Leasing Activity
Achieved positive net office absorption of approximately 104,000 square feet in Q4; signed 224 office leases covering 906,000 square feet in the quarter (274,000 sf new leases, 632,000 sf renewals). For all of 2025 signed 896 office leases totaling 3.4 million square feet. New leasing comprised roughly 30% of activity in the quarter, and expansions outpaced contractions.
Read all positive updates
Company Guidance
Douglas Emmett guided 2026 diluted net income per common share to a loss of $0.20 to $0.14 and FFO per fully diluted share to $1.39–$1.45, a range that management says primarily reflects increased interest expense and assumes no occupancy growth; the guidance excludes the impact of future property acquisitions or dispositions, common stock sales or repurchases, financings, insurance recoveries, impairment charges or other capital markets activities. For context, Q4 revenue was $249 million, same-property cash NOI fell 1.4% (while multifamily same-property cash NOI rose ~5%), quarterly FFO was $0.35 per share, AFFO was $53 million, G&A ran about 4.9% of revenue, the company achieved 104,000 sq ft of positive office net absorption in Q4 and signed 224 leases (906,000 sq ft) in the quarter, and management completed nearly $2.0 billion of debt transactions in 2025 (including a $565M JV loan effectively fixed at 4.79% and accreting swaps effectively fixing ~75% of a $375M construction facility at ~5.8%).Douglas Emmett Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.00B | 986.48M | 1.02B | 993.65M | 918.40M |
| Gross Profit | -161.82M | 636.22M | 198.91M | 659.83M | 615.00M |
| EBITDA | 654.18M | 590.86M | 593.58M | 619.52M | 574.92M |
| Net Income | 16.27M | 23.52M | -42.71M | 97.14M | 65.27M |
Balance Sheet | |||||
| Total Assets | 9.29B | 9.40B | 9.64B | 9.75B | 9.35B |
| Cash, Cash Equivalents and Short-Term Investments | 340.79M | 444.62M | 523.08M | 268.84M | 335.90M |
| Total Debt | 5.57B | 5.51B | 5.55B | 5.20B | 5.02B |
| Total Liabilities | 5.81B | 5.75B | 5.80B | 5.47B | 5.37B |
| Stockholders Equity | 1.90B | 2.06B | 2.22B | 2.56B | 2.42B |
Cash Flow | |||||
| Free Cash Flow | 194.46M | 169.30M | 237.81M | 258.77M | 153.86M |
| Operating Cash Flow | 386.85M | 408.69M | 426.96M | 496.89M | 446.95M |
| Investing Cash Flow | -259.94M | -240.76M | -233.59M | -560.95M | -288.71M |
| Financing Cash Flow | -230.74M | -246.46M | 60.87M | -3.00M | 5.25M |
Douglas Emmett Technical Analysis
Neutral
9.34
Price Trends
9.76
Negative
10.39
Negative
12.31
Negative
Market Momentum
-0.08
Negative
53.66
Neutral
56.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEI, the sentiment is Neutral. The current price of 9.34 is below the 20-day moving average (MA) of 9.36, below the 50-day MA of 9.76, and below the 200-day MA of 12.31, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 53.66 is Neutral, neither overbought nor oversold. The STOCH value of 56.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DEI.
Douglas Emmett Risk Analysis
Douglas Emmett disclosed 51 risk factors in its most recent earnings report. Douglas Emmett reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Douglas Emmett Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.38B | 89.50 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $2.46B | 24.27 | 6.69% | 7.83% | -2.10% | -13.30% | |
54 Neutral | $3.84B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
51 Neutral | $2.92B | ― | -2.25% | 6.95% | 8.60% | ― | |
46 Neutral | $328.59M | -0.88 | -17.84% | ― | -7.89% | -15.88% | |
45 Neutral | $1.62B | -67.23 | 0.82% | 6.45% | -0.12% | ― |
* Real Estate Sector Average
DEI
Douglas Emmett
9.68
-3.31
-25.49%
CUZ
Cousins Properties
22.88
-2.30
-9.14%
HIW
Highwoods Properties
22.42
-2.82
-11.19%
HPP
Hudson Pacific Properties
5.98
-9.63
-61.69%
KRC
Kilroy Realty
28.22
-0.86
-2.96%
SLG
SL Green Realty
38.42
-10.34
-21.21%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.