Douglas Emmett (DEI) AI Stock Analysis

• Market Cap: $2.15B
• Dividend Yield: 6.52%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 59.3
• Beta (1Y): 1.02
• Revenue Growth: -0.12%
• EPS Growth: N/A
• Country: US
• Employees: 770
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.07
• Shares Outstanding: 167,446,350
• 10 Day Avg. Volume: 2,114,235
• 30 Day Avg. Volume: 1,792,548
• PEG Ratio: -0.88
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 3.15
• P/FCF Ratio: 18.35
• Enterprise Value/Market Cap: 4.31
• Enterprise Value/Revenue: 9.27
• Enterprise Value/Gross Profit: 14.56
• Enterprise Value/Ebitda: 14.19
• 1Y Price Target: $15.38
• Price Target Upside: 33.86% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $12.50 ▲(8.79% Upside)

Douglas Emmett's overall stock score is primarily influenced by its financial performance and technical analysis. The company's operational efficiency and strong cash flow generation are positive, but are outweighed by declining revenue growth, high debt levels, and a bearish technical outlook. The high P/E ratio suggests overvaluation, though the attractive dividend yield provides some support.

Positive Factors

Multifamily Growth

The strong growth in multifamily NOI indicates robust demand in the residential sector, supporting long-term revenue stability and expansion potential.

Debt Refinancing

Successful debt refinancing at competitive rates enhances financial flexibility and reduces interest expenses, supporting long-term financial health.

Development Opportunities

New state laws enabling multifamily development provide growth avenues, potentially increasing asset value and revenue over time.

Negative Factors

Office Leasing Slowdown

The slowdown in office leasing could impact revenue and occupancy rates, posing a challenge to maintaining stable cash flows in the office segment.

Flat Revenue and Lower FFO

Flat revenue and declining FFO suggest difficulties in revenue growth and profitability, potentially affecting long-term financial performance.

High Debt Levels

High leverage can limit financial flexibility and increase risk, impacting the company's ability to invest in growth and weather economic downturns.

Douglas Emmett Business Overview & Revenue Model

Company Description

Douglas Emmett, Inc. (DEI) is a publicly traded real estate investment trust (REIT) that primarily focuses on the ownership, operation, and development of office and multifamily residential properties in premier markets of Los Angeles and Honolulu. The company is renowned for its high-quality portfolio, which includes strategically located properties designed to meet the needs of tenants in key urban areas. DEI's core services encompass property management, leasing, and development, aimed at maximizing the value and performance of its real estate assets.

How the Company Makes Money

Douglas Emmett generates revenue mainly through rental income from its office and multifamily properties. The company leases space to a diverse range of tenants, including large corporations and residential individuals, which provides a steady stream of income. Additionally, DEI may earn revenue through the management of its properties and through development projects that increase asset value. The company also benefits from strategic partnerships with local businesses and community organizations, enhancing its tenant relationships and occupancy rates. The overall success of DEI's revenue model is further supported by its focus on high-demand markets, which allows for more favorable pricing and occupancy levels.

Douglas Emmett Financial Statement Overview

Summary

Douglas Emmett shows operational efficiency with stable EBIT and EBITDA margins, but faces challenges with declining revenue growth and low net profit margins. The high debt-to-equity ratio is a concern, indicating potential financial risk. However, strong cash flow generation is a positive indicator for future financial stability.

Income Statement

Douglas Emmett's income statement shows a mixed performance. The company has maintained a stable EBIT and EBITDA margin, indicating operational efficiency. However, the revenue growth rate has been negative in recent periods, and the net profit margin is low, reflecting challenges in converting revenue into profit. The gross profit margin has also declined, suggesting increased cost pressures.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, which poses a risk in terms of financial leverage. The return on equity is low, indicating limited profitability relative to shareholder equity. The equity ratio is moderate, suggesting a balanced asset structure but with significant reliance on debt financing.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate, indicating improved cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting effective cash management. However, the free cash flow to net income ratio is moderate, reflecting some challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	999.53M	986.48M	1.02B	993.65M	918.40M	888.05M
Gross Profit	636.63M	636.22M	198.91M	659.83M	615.00M	582.64M
EBITDA	653.10M	590.86M	593.58M	619.52M	574.92M	527.16M
Net Income	22.22M	23.52M	-42.71M	97.14M	65.27M	50.42M
Balance Sheet
Total Assets	9.39B	9.40B	9.64B	9.75B	9.35B	9.25B
Cash, Cash Equivalents and Short-Term Investments	408.48M	444.62M	523.08M	268.84M	335.90M	172.38M
Total Debt	5.57B	5.51B	5.55B	5.20B	5.02B	4.76B
Total Liabilities	5.86B	5.75B	5.80B	5.47B	5.37B	5.25B
Stockholders Equity	1.95B	2.06B	2.22B	2.56B	2.42B	2.44B
Cash Flow
Free Cash Flow	96.22M	169.30M	237.81M	258.77M	153.86M	122.62M
Operating Cash Flow	397.80M	408.69M	426.96M	496.89M	446.95M	420.22M
Investing Cash Flow	-273.15M	-240.76M	-233.59M	-560.95M	-288.71M	-265.18M
Financing Cash Flow	-260.39M	-246.46M	60.87M	-3.00M	5.25M	-136.33M

Douglas Emmett Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DEI, the sentiment is Negative. The current price of 11.49 is below the 20-day moving average (MA) of 12.43, below the 50-day MA of 13.99, and below the 200-day MA of 14.74, indicating a bearish trend. The MACD of -0.65 indicates Positive momentum. The RSI at 29.10 is Positive, neither overbought nor oversold. The STOCH value of 12.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DEI.

Douglas Emmett Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	72 Outperform	$4.96B	15.30	5.94%	5.21%	0.77%	62.58%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$3.02B	24.35	5.37%	7.27%	-2.10%	-13.30%
CUZ	63 Neutral	$4.22B	72.52	1.26%	5.09%	16.38%	3.60%
DEI	52 Neutral	$2.15B	59.33	1.03%	6.52%	-0.12%	―
HPP	45 Neutral	$657.39M	―	-14.02%	―	-7.89%	-15.88%
SLG	45 Neutral	$3.39B	―	0.61%	7.02%	8.60%	―

Douglas Emmett Corporate Events

Douglas Emmett Reports Steady Q3 2025 Earnings

Douglas Emmett, Inc. is a real estate investment trust (REIT) that specializes in owning and managing high-quality office and multifamily properties in the coastal submarkets of Los Angeles and Honolulu, focusing on areas with significant supply constraints and lifestyle amenities.

Douglas Emmett’s Earnings Call: Mixed Sentiments and Strategic Moves

Douglas Emmett’s recent earnings call presented a mixed sentiment, highlighting robust multifamily performance and successful debt refinancing. However, these positives were overshadowed by significant challenges in office leasing, flat revenue, and a decrease in Funds From Operations (FFO). The company is navigating uncertainties, particularly in leasing activities with government and educational tenants.

Douglas Emmett’s Earnings Call: Leasing Strength and Strategic Moves

Douglas Emmett’s recent earnings call painted a picture of resilience and strategic adaptation in the face of financial challenges. The company showcased strong leasing activity and impressive performance in its multifamily portfolio, while also unveiling strategic initiatives like converting office spaces into residential units. Despite facing hurdles such as decreased FFO, AFFO, and same-property cash NOI, as well as increased redevelopment costs, the positive developments in leasing and residential conversions offered a counterbalance to these financial declines.