Douglas Emmett (DEI) AI Stock Analysis

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Douglas Emmett

(NYSE:DEI)

Select Model

Neutral 45 (OpenAI - 5.2)

Rating:45Neutral

Price Target:

$10.00

▼(-3.19% 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

Stable cash generation

Consistently positive operating cash flow and a large 2025 FCF surge provide a durable cash cushion typical of resilient REITs. This steady cash generation supports dividend payments, funds redevelopment and JV-backed acquisitions, and underpins operational stability across cycles.

Robust leasing and office demand

Strong leasing activity and positive office absorption indicate structurally improving demand in core submarkets. High renewal and new-lease volumes with contractual 3%-5% rent bumps should support occupancy and recurring NOI over multiple quarters, improving cash flow durability.

Multifamily portfolio strength

A full-occupancy multifamily portfolio with ~5% same-property cash NOI growth provides diversification vs office cyclicality. Residential cash flow resilience and a sizable apartment development pipeline increase long-term revenue stability and reduce aggregate portfolio volatility.

Negative Factors

High and rising leverage

A materially higher leverage profile and shrinking equity erode financial flexibility and raise refinancing and covenant risk. With capital structure skewed toward debt, the company is more sensitive to rate moves and has less capacity for opportunistic buybacks or large unhedged acquisitions.

Interest expense pressure and weak guidance

Rising interest costs materially compress FFO and drove cautious 2026 guidance, signaling a structural earnings headwind. Even with targeted hedges and refinancings, persistently higher financing costs will limit distributable cash, constrain reinvestment, and raise execution risk on development plans.

Weak core profitability and gross margin anomaly

A negative 2025 gross margin and very thin net margins point to structural cost pressure or large non-recurring items that undermine core property economics. Such profitability erosion weakens ability to cover interest and dividends and raises the likelihood of future asset impairments or corrective capital actions.

Douglas Emmett (DEI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.69B

Dividend Yield6.45%

Average Volume (3M)2.25M

Price to Earnings (P/E)114.0

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 Ratio4.76

Enterprise Value/Market Cap4.12

Enterprise Value/Revenue6.93

Enterprise Value/Gross Profit15.82

Enterprise Value/Ebitda10.71

Forecast

1Y Price Target

$12.06

Price Target Upside16.75% Upside

Rating ConsensusHold

Number of Analyst Covering8

EPS Forecast (FY)-0.19

Revenue Forecast (FY)$1.02B

Douglas Emmett Business Overview & Revenue Model

Company DescriptionDouglas 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 MoneyDouglas 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

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.

Chart InsightsMultifamily has become Douglas Emmett’s clear growth engine—same‑store NOI strength, active development and favorable municipal rules are driving a step‑up in multifamily revenue—while office revenue is essentially flat, hamstrung by leasing slowdowns (UCLA/government weakness) and tax‑refund impacts. The sizable refinancing eases interest burdens, but sustained FFO recovery now hinges on multifamily execution and lease‑up velocity; office leasing trends remain the primary downside risk to overall earnings momentum.

Data provided by:

The Fly

Douglas 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.

Q4-2025 Updates

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.

Multifamily Outperformance

Multifamily portfolio reached essentially full occupancy with same-property cash NOI up ~5% year-over-year in Q4; strong demand and rising rents drove positive multifamily results.

Improving Leasing Economics

Straight-line lease value increased by 2% over the life of leases executed in the quarter; contractual rent bumps of 3%-5% annually help preserve cash flow; beginning cash rent on new leases was 10% lower than prior leases but higher-value new leases executed. Q4 office leasing costs were low at about $5.76 per square foot per year, below benchmark peers.

Active Development and Pipeline

Acquired 10900 Wilshire and planning conversion to high-end mixed-use (200 apartments + additional units); started construction on the Landmark Residences redevelopment and conversion projects (Studio Plaza and Brentwood redevelopment underway). Management noted additional residential development planning for multiple Westside sites (typical project size ~300–500 units) and previously disclosed a large developable apartment pipeline (~9,000 potential units).

Capital Markets Execution and Balance Sheet Actions

Successfully executed nearly $2 billion of debt transactions and refinanced over $1.66 billion of loans during 2025. One consolidated JV reduced debt by $60 million and fixed ~$565 million at 4.79% (effective through Nov 2027, loan matures Aug 2028). Closed a non-recourse construction loan up to $375 million (Brentwood), drew $49.5 million as of Dec 31, 2025; entered accreting swaps to effectively fix ~75% of the construction loan exposure at ~5.8% through Jan 2030.

Full-Year Operational Improvement

By focusing on revenue growth and expense control, the company achieved positive same-property cash NOI for the full year 2025. G&A remains low at approximately 4.9% of revenue, supporting operating efficiency.

Market Diversification and Local Strength

Leasing demand was broad-based across tenant industries (financial services, legal, health services, education, real estate) with no single segment >20% of demand. Honolulu and other markets showed positive momentum, and management highlighted favorable long-term fundamentals in core submarkets (Westside, Brentwood, Burbank).

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.

Same-Property Cash NOI Decline (Office Driven)

Overall same-property cash NOI decreased 1.4% for the quarter, largely attributable to higher office operating expenses that offset multifamily NOI growth.

Increased Interest Expense and Cautious 2026 Guidance

Management cited higher interest expense as the primary driver of guidance: 2026 net income per diluted share expected between negative $0.20 and negative $0.14; FFO guidance $1.39–$1.45. Guidance does not assume occupancy growth despite strong Q4 leasing, reflecting near-term financing headwinds.

Near-Term Occupancy Seasonality and Expirations

First quarter typically experiences higher seasonal move-outs tied to 12/31 expirations; while total 2026 expirations are relatively low, Q1 seasonality could pressure occupancy metrics and cash flow early in the year.

Regulatory/Political Costs and Advocacy Spending

Management indicated increased advocacy/political engagement (California-focused) is adding to G&A. Although current impact is limited, it represents an operating cost headwind and policy risk (e.g., anti-rent gouging ordinance discussions) that could affect multifamily dynamics.

Stock Valuation and Capital Allocation Constraints

Shares trading at depressed valuations (comment on trading around a 9% cap) raised investor buyback interest, but management is reluctant to repurchase stock due to leverage and development funding priorities, potentially creating shareholder tension on capital allocation choices.

Localized Weakness: Hawaii Slight Dip

Despite overall strong performance in Hawaii, Q4 showed a small dip in that market quarter-over-quarter, highlighting some short-term variability even in the strongest submarkets.

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

Cash generation is a stabilizer (consistently positive operating cash flow and positive free cash flow), but overall financial quality is constrained by high and worsening leverage (debt-to-equity rising to ~2.92), shrinking equity, and thin/unstable profitability. The 2025 revenue rebound and FCF surge are positives, but negative 2025 gross profitability and sharply weaker operating cash flow-to-debt coverage in 2025 increase risk.

Income Statement

Neutral

Revenue has been volatile but improved sharply in 2025 (+44.6% YoY) after a decline in 2024 (-3.3%). Profitability is mixed: net margin is low (about 1.6% in 2025; 2.4% in 2024) and the company posted a net loss in 2023, even though EBITDA margins remain very strong (roughly 58–65% across the period). A major red flag is 2025 gross profit turning negative (gross margin about -16%), suggesting significant cost/expense pressure or non-recurring impacts that distort the core earnings picture.

Balance Sheet

Negative

Leverage is high and has trended worse versus earlier years, with debt-to-equity rising from ~2.0 (2022) to ~2.92 (2025). Equity has declined over time (from ~$2.56B in 2022 to ~$1.90B in 2025), reducing balance-sheet flexibility. Returns on equity are very low (about 0.9% in 2025; 1.1% in 2024) and were negative in 2023, pointing to weak value creation relative to the capital base. The company still carries a large asset base (~$9.29B in 2025), but the capital structure skews heavily toward debt.

Cash Flow

Neutral

Operating cash flow is consistently positive (roughly $387M–$497M from 2021–2025), which is an important stabilizer for a REIT. Free cash flow is positive each year and surged in 2025 (up ~302%), but it has also been choppy (notably down in 2023 and 2024). A key concern is cash flow coverage of debt weakening sharply in 2025 (operating cash flow relative to total debt ~0.07x vs ~2.5–2.9x in 2021–2024), implying reduced cushion against the company’s sizable leverage despite ongoing cash generation.

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	386.85M	169.30M	237.81M	258.77M	153.86M
Operating Cash Flow	386.85M	408.69M	426.96M	496.89M	446.95M
Investing Cash Flow	-265.34M	-240.76M	-233.59M	-560.95M	-288.71M
Financing Cash Flow	-225.34M	-246.46M	60.87M	-3.00M	5.25M

Douglas Emmett Technical Analysis

Technical Analysis Sentiment

Negative

Last Price10.33

Price Trends

50DMA

10.79

Negative

100DMA

11.79

Negative

200DMA

13.43

Negative

Market Momentum

MACD

-0.20

Negative

RSI

47.44

Neutral

STOCH

49.35

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 10.33 is above the 20-day moving average (MA) of 10.32, below the 50-day MA of 10.79, and below the 200-day MA of 13.43, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 47.44 is Neutral, neither overbought nor oversold. The STOCH value of 49.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DEI.

Douglas Emmett Risk Analysis

Douglas Emmett disclosed 50 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

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
KRC	57 Neutral	$3.71B	13.39	5.09%	5.75%	0.77%	62.58%
HIW	56 Neutral	$2.54B	16.22	6.73%	7.83%	-2.10%	-13.30%
CUZ	53 Neutral	$3.88B	96.08	0.85%	5.08%	16.38%	3.60%
SLG	48 Neutral	$2.78B	-23.45	-2.25%	6.95%	8.60%	―
HPP	47 Neutral	$371.52M	-0.37	-14.02%	―	-7.89%	-15.88%
DEI	45 Neutral	$1.69B	114.03	1.03%	6.45%	-0.12%	―

* Real Estate Sector Average

Performance Comparison

DEI

Douglas Emmett

10.50

-5.73

-35.31%

CUZ

Cousins Properties

23.97

-4.84

-16.81%

HIW

Highwoods Properties

23.42

-3.36

-12.54%

HPP

Hudson Pacific Properties

7.69

-15.34

-66.61%

KRC

Kilroy Realty

32.02

-1.97

-5.80%

SLG

SL Green Realty

39.32

-22.36

-36.25%

Douglas Emmett Corporate Events

Executive/Board Changes

Douglas Emmett Appoints Kenneth Panzer as President

Neutral

Dec 10, 2025

On December 4, 2025, Douglas Emmett, Inc. appointed Kenneth M. Panzer, the Chief Operating Officer, as the new President while retaining his COO role. This leadership change does not involve any new compensation arrangements or familial ties, and Jordan L. Kaplan will continue as Chairman and CEO.

The most recent analyst rating on (DEI) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Douglas Emmett stock, see the DEI Stock Forecast page.

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.Date of analysis: Feb 21, 2026