Douglas Emmett Inc. (DEI, Financial) filed Quarterly Report for the period ended 2011-08-05.
Douglas Emmett has a market cap of $2.17 billion; its shares were traded at around $17.8 with a P/E ratio of 12.29 and P/S ratio of 3.8. The dividend yield of Douglas Emmett stocks is 2.98%. Douglas Emmett had an annual average earning growth of 7% over the past 5 years.
Office Rental Expenses. Total office rental expense increased by $9.5 million, or 12.9%, to $82.8 million for the six months ended June 30, 2011, compared to $73.3 million for the six months ended June 30, 2010. The increase is primarily due to $7.0 million of incremental expense from the property we acquired at the end of the second quarter of 2010, as well as an increase of $2.5 million for the remainder of our portfolio. The $2.5 million increase is primarily due to increases in utilities expense, scheduled services and ancillary property tax assessments.
Depreciation and Amortization. Depreciation and amortization expense increased $4.0 million, or 3.6%, to $114.3 million for the six months ended June 30, 2011, compared to $110.3 million for the six months ended June 30, 2010. The increase is primarily due to $4.6 million of incremental depreciation expense from the property we acquired at the end of the second quarter of 2010, partially offset by a decrease of $0.6 million due to certain assets in the remainder of our portfolio being fully depreciated.
In 2010, we filed a prospectus with the Securities and Exchange Commission covering an “at the market” sales program for up to $250 million of our common stock. During the quarter ended June 30, 2011, we sold an aggregate of 1.1 million shares of our common stock under this program, in exchange for aggregate gross proceeds of approximately $22.3 million. After commissions of $335 thousand and other expenses, the net proceeds from sales during the quarter totaled $21.9 million. We expect to use the net proceeds for general corporate purposes, which as noted above could include repaying some of our outstanding debt. As of June 30, 2011, up to an additional $227.7 million in our common stock could be sold under this program during the next two years.
Our net cash related to financing activities is generally impacted by our borrowings, and capital activities net of dividends and distributions paid to common stockholders and noncontrolling interests. Net cash used in financing activities totaled $16.8 million for the six months ended June 30, 2011, compared to net cash provided by financing activities totaling $122.8 million for the six months ended June 30, 2010. During the six months ended June 30, 2011, our cash used in financing activities reflects the repayment of approximately $853.2 million in borrowings as part of our term loan financing program, as well as $6.9 million in fees on the replacement loans and a refundable $7.1 million cash deposit paid to a lender during the current reporting period related to a loan that closed subsequent to quarter end. See Note 15 to our consolidated financial statements in Item 1 of this Report. These uses of cash were offset by the cash sources of approximately $860.0 million in replacement loans and net proceeds of $21.9 million from the issuance of shares of our common stock under our ATM program. During the six months ended June 30, 2010, our financing cash sources reflect net short-term borrowings of $154.5 million related to the property acquisition that occurred at the end of the second quarter of 2010.
During the first quarter of 2011, we entered into a new seven-year $350 million term loan agreement and a new seven-year $510 million term loan agreement. We also modified an existing $18 million loan that was scheduled to mature on March 1, 2011 by extending the maturity to March 3, 2014 at a reduced principal balance of $16.14 million. As of June 30, 2011, our outstanding $3.7 billion of debt included $2.85 billion of effectively fixed rate debt that bore interest at a weighted average rate of 4.52%, as well as $819.7 million of floating rate debt at a weighted average rate of 1.06% using the floating rates in effect at June 30, 2011. See Note 7 to our consolidated financial statements in Item 1 of this Report. Other than these three loans, during the first six months of 2011 there were no material changes outside the ordinary course of business in the information regarding specified contractual obligations contained in our 2010 Annual Report on Form 10-K. However, subsequent to the end of this reporting period, we obtained two new term loans and used the proceeds to repay certain term loans that were scheduled to mature in 2012. Including the effect of these financings, as of August 1, 2011, our weighted average interest rate was 4.28% on the $3.3 billion of our total debt balance of $3.6 billion that bears interest at fixed rates. The remaining $327.5 million of debt bears interest at floating rates. See Note 15 to our consolidated financial statements in Item 1 of this Report.
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Douglas Emmett has a market cap of $2.17 billion; its shares were traded at around $17.8 with a P/E ratio of 12.29 and P/S ratio of 3.8. The dividend yield of Douglas Emmett stocks is 2.98%. Douglas Emmett had an annual average earning growth of 7% over the past 5 years.
Highlight of Business Operations:
Office Rental Expenses. Total office rental expense increased by $5.0 million, or 13.4%, to $42.2 million for the three months ended June 30, 2011, compared to $37.2 million for the three months ended June 30, 2010. The increase is primarily due to $3.6 million of incremental expense from the property we acquired at the end of the second quarter of 2010, as well as an increase of $1.4 million for the remainder of our portfolio. The $1.4 million increase is primarily due to increases in utilities expense, scheduled services, and ancillary property tax assessments.Office Rental Expenses. Total office rental expense increased by $9.5 million, or 12.9%, to $82.8 million for the six months ended June 30, 2011, compared to $73.3 million for the six months ended June 30, 2010. The increase is primarily due to $7.0 million of incremental expense from the property we acquired at the end of the second quarter of 2010, as well as an increase of $2.5 million for the remainder of our portfolio. The $2.5 million increase is primarily due to increases in utilities expense, scheduled services and ancillary property tax assessments.
Depreciation and Amortization. Depreciation and amortization expense increased $4.0 million, or 3.6%, to $114.3 million for the six months ended June 30, 2011, compared to $110.3 million for the six months ended June 30, 2010. The increase is primarily due to $4.6 million of incremental depreciation expense from the property we acquired at the end of the second quarter of 2010, partially offset by a decrease of $0.6 million due to certain assets in the remainder of our portfolio being fully depreciated.
In 2010, we filed a prospectus with the Securities and Exchange Commission covering an “at the market” sales program for up to $250 million of our common stock. During the quarter ended June 30, 2011, we sold an aggregate of 1.1 million shares of our common stock under this program, in exchange for aggregate gross proceeds of approximately $22.3 million. After commissions of $335 thousand and other expenses, the net proceeds from sales during the quarter totaled $21.9 million. We expect to use the net proceeds for general corporate purposes, which as noted above could include repaying some of our outstanding debt. As of June 30, 2011, up to an additional $227.7 million in our common stock could be sold under this program during the next two years.
Our net cash related to financing activities is generally impacted by our borrowings, and capital activities net of dividends and distributions paid to common stockholders and noncontrolling interests. Net cash used in financing activities totaled $16.8 million for the six months ended June 30, 2011, compared to net cash provided by financing activities totaling $122.8 million for the six months ended June 30, 2010. During the six months ended June 30, 2011, our cash used in financing activities reflects the repayment of approximately $853.2 million in borrowings as part of our term loan financing program, as well as $6.9 million in fees on the replacement loans and a refundable $7.1 million cash deposit paid to a lender during the current reporting period related to a loan that closed subsequent to quarter end. See Note 15 to our consolidated financial statements in Item 1 of this Report. These uses of cash were offset by the cash sources of approximately $860.0 million in replacement loans and net proceeds of $21.9 million from the issuance of shares of our common stock under our ATM program. During the six months ended June 30, 2010, our financing cash sources reflect net short-term borrowings of $154.5 million related to the property acquisition that occurred at the end of the second quarter of 2010.
During the first quarter of 2011, we entered into a new seven-year $350 million term loan agreement and a new seven-year $510 million term loan agreement. We also modified an existing $18 million loan that was scheduled to mature on March 1, 2011 by extending the maturity to March 3, 2014 at a reduced principal balance of $16.14 million. As of June 30, 2011, our outstanding $3.7 billion of debt included $2.85 billion of effectively fixed rate debt that bore interest at a weighted average rate of 4.52%, as well as $819.7 million of floating rate debt at a weighted average rate of 1.06% using the floating rates in effect at June 30, 2011. See Note 7 to our consolidated financial statements in Item 1 of this Report. Other than these three loans, during the first six months of 2011 there were no material changes outside the ordinary course of business in the information regarding specified contractual obligations contained in our 2010 Annual Report on Form 10-K. However, subsequent to the end of this reporting period, we obtained two new term loans and used the proceeds to repay certain term loans that were scheduled to mature in 2012. Including the effect of these financings, as of August 1, 2011, our weighted average interest rate was 4.28% on the $3.3 billion of our total debt balance of $3.6 billion that bears interest at fixed rates. The remaining $327.5 million of debt bears interest at floating rates. See Note 15 to our consolidated financial statements in Item 1 of this Report.
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