Douglas Emmett (DEI) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: 4.94%
• Average Volume (3M): 1.40M
• Price to Earnings (P/E): 49.6
• Beta (1Y): 1.08
• Revenue Growth: -1.98%
• EPS Growth: N/A
• Country: US
• Employees: 770
• Sector: Real Estate
• Sector Strength: 51
• Industry: REIT - Office
• EPS (TTM): 0.24
• Shares Outstanding: 167,446,350
• 10 Day Avg. Volume: 1,210,636
• 30 Day Avg. Volume: 1,399,694
• PEG Ratio: 0.34
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.56
• Enterprise Value/Market Cap: 2.44
• Enterprise Value/Revenue: 1.95
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 3.07
• 1Y Price Target: $17.00
• Price Target Upside: 10.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 63 Neutral
• Price Target: $16.50 ▲(7.21%Upside)

Douglas Emmett's overall score reflects a blend of strengths and challenges. The company's stable financial performance and positive cash flow trends are key positives, while high leverage and valuation concerns temper the outlook. The recent earnings call highlights both strategic successes and economic challenges, resulting in a cautiously optimistic sentiment.

Positive Factors

Leasing Activity

Leasing progress at Studio Plaza is likely to be a positive catalyst for DEI shares.

Multifamily Performance

Multifamily was a bright spot in recent performance and is expected to continue performing well, benefiting from demand from displaced residents.

Negative Factors

Interest Rate Swaps

Douglas Emmett has interest rate swaps expiring in the near term, which may impact financial performance.

Occupancy Challenges

The pandemic-induced leasing slump and slow return to office continue to weigh on Douglas Emmett's portfolio, with occupancy reaching new lows.

Douglas Emmett Business Overview & Revenue Model

Company Description

Douglas Emmett, Inc. (DEI) is a publicly traded real estate investment trust (REIT) that focuses on owning, acquiring, and managing premier office and multifamily properties in Los Angeles and Honolulu. The company's strategic emphasis is on high-end office space and luxury apartment communities situated in desirable urban areas that attract a diverse range of tenants, including businesses and affluent residents. As one of the largest owners and operators in its core markets, Douglas Emmett leverages its deep local expertise and extensive property portfolio to drive occupancy and rental growth.

How the Company Makes Money

Douglas Emmett generates revenue primarily through rental income from its extensive portfolio of office and multifamily properties. The company leases office spaces to a wide array of businesses, ranging from small enterprises to large corporations, who pay regular rental fees under long-term lease agreements. Additionally, Douglas Emmett earns substantial income from its luxury apartment communities, where tenants pay monthly rents. The company strategically invests in high-demand urban areas with limited space, allowing it to maintain high occupancy rates and capitalize on rental rate increases. Furthermore, Douglas Emmett may engage in property acquisitions and dispositions, enhancing its portfolio value and optimizing its revenue-generating potential. The company's earnings are also supported by its ability to efficiently manage its properties, maintaining high-quality standards that attract and retain tenants, thus ensuring consistent revenue streams.

Douglas Emmett Financial Statement Overview

Summary

Douglas Emmett presents a solid financial profile with stable revenue and profit margins, reflecting operational efficiency. However, the high debt-to-equity ratio poses financial risks, and fluctuations in the free cash flow to net income ratio suggest potential volatility in cash conversion.

Income Statement

Douglas Emmett shows a stable gross profit margin with minor fluctuations, indicating strong cost control. The net profit margin has improved over the last year due to increasing net income, signaling enhanced profitability. Revenue growth has been positive, although the pace has varied. EBIT and EBITDA margins are stable, reflecting consistent operating efficiency.

Balance Sheet

The debt-to-equity ratio is relatively high, suggesting significant leverage, which might pose financial risks if not managed properly. However, the equity ratio remains stable, indicating a reasonable proportion of equity financing. Return on equity has improved, reflecting better profit generation from shareholder investments.

Cash Flow

Free cash flow has shown growth, supporting potential reinvestment opportunities. The operating cash flow to net income ratio is strong, indicating good conversion of income into cash. However, the free cash flow to net income ratio fluctuates due to variations in net income, suggesting potential volatility in cash conversion.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	986.48M	1.02B	993.65M	918.40M	891.52M
Gross Profit	636.22M	198.91M	659.83M	615.00M	586.11M
EBITDA	621.08M	593.58M	619.52M	574.92M	566.67M
Net Income	23.52M	-42.71M	-53.65M	-84.70M	-106.22M
Balance Sheet
Total Assets	9.40B	9.64B	9.75B	9.35B	9.25B
Cash, Cash Equivalents and Short-Term Investments	444.62M	523.08M	268.84M	335.90M	172.38M
Total Debt	5.51B	5.55B	5.20B	5.02B	4.76B
Total Liabilities	5.75B	5.80B	5.47B	5.37B	5.25B
Stockholders Equity	2.06B	2.22B	2.56B	2.42B	2.44B
Cash Flow
Free Cash Flow	169.30M	237.81M	258.77M	153.86M	122.62M
Operating Cash Flow	408.69M	426.96M	496.89M	446.95M	420.22M
Investing Cash Flow	-240.76M	-233.59M	-560.95M	-288.71M	-265.18M
Financing Cash Flow	-246.46M	60.87M	-3.00M	5.25M	-136.33M

Douglas Emmett Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 15.39
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 15.39 is below the 20-day moving average (MA) of 15.67, above the 50-day MA of 15.00, and below the 200-day MA of 16.20, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 45.22 is Neutral, neither overbought nor oversold. The STOCH value of 24.37 is Neutral, 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	79 Outperform	$4.40B	20.06	4.06%	5.86%	2.26%	10.26%
HIW	72 Outperform	$3.14B	24.77	5.39%	6.89%	-2.08%	-16.41%
DEI	63 Neutral	$3.18B	49.60	2.49%	4.94%	-1.98%	―
PGRE	63 Neutral	$1.48B	―	-2.52%	0.56%	-1.68%	63.27%
Sector *	63 Neutral	$6.78B	14.59	-1.87%	7.22%	3.95%	-36.33%
CUZ	62 Neutral	$4.66B	82.86	1.15%	4.72%	10.93%	-31.07%
SLG	58 Neutral	$4.50B	663.10	-0.35%	5.34%	14.21%	79.46%

Douglas Emmett Corporate Events

Douglas Emmett Holds Annual Stockholders Meeting

On May 29, 2025, Douglas Emmett, Inc. held its annual meeting of stockholders where several key proposals were voted on. The board of directors saw the election of several members, including Jordan L. Kaplan and Dorene C. Dominguez, among others, to serve until the 2026 meeting. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for 2025, and the executive officer compensation for 2024 was approved.

The most recent analyst rating on (DEI) stock is a Hold with a $18.00 price target. To see the full list of analyst forecasts on Douglas Emmett stock, see the DEI Stock Forecast page.