Q2 2026 Douglas Emmett, Inc. Earnings Call Transcript
Key Points
- Signed 960,000 square feet of office leases with positive absorption of 60,000 square feet, marking three consecutive strong quarters.
- New leases were 3% more valuable than expiring leases, with low concessions and healthy rent bumps.
- Acquired the Bedford Collection, a well-leased medical office portfolio in Beverly Hills, at attractive pricing.
- Refinanced over $800 million of debt, fixing interest rates at 6.15% and 6.18% for four years.
- Residential portfolio remains over 99% leased with cash same-property NOI up 2% year-over-year.
- Same-property cash NOI decreased 1.2% for the quarter.
- Higher market interest rates are expected to offset operational improvements, lowering 2026 FFO guidance to $1.39-$1.43 per share.
- Including Studio Plaza in the operating portfolio reduces reported office occupancy guidance to 75%-77%.
- Net income guidance remains negative, projected between -$0.20 and -$0.16 per share.
- Lease-to-occupied spread widened to 470 basis points, indicating significant space leased but not yet occupied, delaying revenue recognition.
Ladies and gentlemen, thank you for standing by. Welcome to Douglas Emmett's quarterly earnings call. Today's call is being recorded. (Operator Instructions) I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.
Thank you. Joining us today on the call are Jordan Kaplan, our Chairman and CEO; Kevin Crummy, our CIO; and Peter Seymour, our CFO. This call is being webcast live from our website and will be available for replay during the next 90 days. You can also find our earnings package at the Investor Relations section of our website. You can find reconciliations of non-GAAP financial measures discussed during today's call in the earnings package.
During this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors
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