Douglas Emmett (DEI) AI Stock Analysis

• Market Cap: $2.21B
• Dividend Yield: 5.75%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 61.1
• Beta (1Y): 1.02
• Revenue Growth: -0.57%
• EPS Growth: N/A
• Country: US
• Employees: 770
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.04
• 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: 4.19
• Enterprise Value/Revenue: 9.27
• Enterprise Value/Gross Profit: 17.44
• Enterprise Value/Ebitda: 14.28
• 1Y Price Target: $17.00
• Price Target Upside: 28.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 56 Neutral
• Price Target: $13.50 ▲(2.12% Upside)

Douglas Emmett's overall stock score reflects a balance of moderate financial health and bearish technical indicators. The company's strong leasing activity and residential portfolio success are positive, but high leverage and cash flow pressures are concerns. The high P/E ratio suggests potential overvaluation, though the dividend yield is attractive. The mixed sentiment from the earnings call further tempers the outlook.

Positive Factors

Residential Portfolio Success

The full occupancy and rising rents in the residential portfolio indicate strong demand and effective management, contributing to stable cash flows and long-term revenue growth.

Office to Residential Conversion

Converting office space to residential units can enhance asset value and reduce vacancy risks, aligning with urban living trends and boosting long-term profitability.

Refinancing Progress

Refinancing at competitive rates improves financial flexibility and reduces interest expenses, supporting long-term financial health and operational stability.

Negative Factors

High Leverage

High leverage increases financial risk and limits flexibility, potentially impacting future investment capabilities and increasing vulnerability to market fluctuations.

Decreased FFO and AFFO

Declining FFO and AFFO indicate reduced cash flow generation, which can strain financial resources and limit the ability to fund operations and growth initiatives.

Rising Redevelopment Costs

Increasing redevelopment costs can pressure financial resources and delay project completion, affecting return on investment and cash flow projections.

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 submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

How the Company Makes Money

Douglas Emmett generates revenue primarily through leasing its office and multifamily properties to tenants. The company earns rental income from long-term leases with corporate clients and residential tenants, which constitutes a significant portion of its revenue stream. Additionally, DEI benefits from property management services, as it manages its portfolio of assets to optimize occupancy rates and rental income. The company may also realize gains through the sale of properties, particularly those that appreciate in value over time or reach operational maturity. Partnerships with local businesses and community organizations can enhance tenant retention and drive demand for its properties, further contributing to its financial performance.

Douglas Emmett Financial Statement Overview

Summary

Douglas Emmett presents a solid financial profile with stable revenue and profit margins, reflecting operational efficiency. Despite high leverage, the company maintains stable equity levels. Cash flows are positive, with growth in free cash flow supporting future expansions. Continuous monitoring of debt levels is recommended to mitigate financial risks.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	999.70M	986.48M	1.02B	993.65M	918.40M	891.52M
Gross Profit	531.50M	636.22M	198.91M	659.83M	615.00M	586.11M
EBITDA	649.21M	590.86M	593.58M	619.52M	574.92M	566.67M
Net Income	37.70M	23.52M	-42.71M	-53.65M	-84.70M	-106.22M
Balance Sheet
Total Assets	9.43B	9.40B	9.64B	9.75B	9.35B	9.25B
Cash, Cash Equivalents and Short-Term Investments	426.89M	444.62M	523.08M	268.84M	335.90M	172.38M
Total Debt	5.58B	5.51B	5.55B	5.20B	5.02B	4.76B
Total Liabilities	5.84B	5.75B	5.80B	5.47B	5.37B	5.25B
Stockholders Equity	2.00B	2.06B	2.22B	2.56B	2.42B	2.44B
Cash Flow
Free Cash Flow	126.92M	169.30M	237.81M	258.77M	153.86M	122.62M
Operating Cash Flow	391.73M	408.69M	426.96M	496.89M	446.95M	420.22M
Investing Cash Flow	-235.71M	-240.76M	-233.59M	-560.95M	-288.71M	-265.18M
Financing Cash Flow	-290.27M	-246.46M	60.87M	-3.00M	5.25M	-136.33M

Douglas Emmett Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• 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 13.22 is below the 20-day moving average (MA) of 14.08, below the 50-day MA of 15.11, and below the 200-day MA of 15.11, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 27.74 is Positive, neither overbought nor oversold. The STOCH value of 21.59 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	―	$4.88B	22.19	5.95%	5.15%	0.77%	62.86%
CUZ	―	$4.42B	71.32	1.30%	4.86%	13.07%	-4.94%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	―	$3.19B	25.21	5.39%	6.75%	-2.16%	-16.41%
DEI	―	$2.21B	61.09	1.74%	5.75%	-0.57%	―
SLG	―	$4.04B	―	0.63%	5.78%	7.66%	―
HPP	―	$952.55M	―	-12.35%	―	-9.68%	-69.03%

Douglas Emmett Corporate Events

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.

Douglas Emmett Reports Mixed Q2 2025 Financial Results

Douglas Emmett, a prominent real estate investment trust, specializes in owning and managing Class A office properties and multifamily apartment units, primarily located in the coastal submarkets of Los Angeles and Honolulu.