“We are signing leases that will commence as common areas and the related floors are completed. Our ongoing development projects will provide strong long-term growth.”
— Jordan Kaplan
03Detailed Report
DEI
Company DEI
Period
Q4 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 24, 2026
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Executive Summary
Douglas Emmett reported a challenging but progress-oriented Q4 2024, with revenue of $244.98 million and a net loss of $0.9 million, reflecting ongoing occupancy headwinds tied to Warner Bros.’ departure and higher interest costs. The quarter highlighted a stabilizing residential portfolio (residential occupancy near 99%), disciplined expense management, and stable office rent trajectories that underpin a 2025 outlook that remains biased toward gradual occupancy improvement and meaningful development-driven growth over the longer horizon. Management emphasized a robust development agenda (including the Westwood 17-story, 247k sf office project and adjoining residential site) and the formation of a new JV to advance long-term value creation, while guiding 2025 net income per share (diluted) to a loss range (-$0.17 to -$0.11) and FFO per diluted share to $1.42–$1.48, reflecting consolidation of the unconsolidated fund and the new JV and limited near-term NOI contribution from the JV due to construction timing. The earnings call underscored expectations for positive absorption in 2025, improved large-tenant demand, and a favorable rental-rate environment relative to peers, even as the company navigates elevated leverage and interest expense. Investors should monitor occupancy progression toward the 78–80% range, the pace of leasing in early 2025, development milestones, and the ability to refinance maturing debt at favorable terms in a still-rate-sensitive environment.
Key Performance Indicators
Revenue
Decreasing
244.98M
QoQ: -2.30% | YoY: -5.52%
Gross Profit
Increasing
155.67M
63.54% margin
QoQ: -0.21% | YoY: 244.40%
Operating Income
Increasing
47.87M
QoQ: -1.70% | YoY: 56.13%
Net Income
Increasing
-888.00K
QoQ: -119.23% | YoY: 97.82%
EPS
Increasing
-0.01
QoQ: -133.33% | YoY: 95.83%
Revenue Trend
Margin Analysis
Financial Highlights
Overview of 2024 results with a focus on the transition from downturn to a gradual recovery driven by leasing activity and development-influenced growth. Key highlights include:
- Revenue: $244.98 million in Q4 2024, down 5.5% YoY from Q4 2023, and down 2.3% QoQ. Gross profit $155.67 million; gross margin 63.54%.
- Profitability: Operating income $47.87 million (operating margin 19.54%); net income $(0.89) million (net margin −0.36%). EBITDA $150.42 million; EBITDA margin 61.40%.
- Per-share metrics: Reported EPS −$0.01; EPS diluted −$0.01; FFO per diluted share $0.38; AFFO not directly stated in quarterly figures but referenced as $58.7 million for full-year 2024.
- Cash flow and liquidity: Net cash provided by operating activities $74.10 million; free cash flow (FCF) negative $(10.48) million; capital expenditures $84.58 million; net change in cash $(99.60) million; cash and cash equivalents $444.62 million at period end.
- Balance sheet: Total assets $9.4037 billion; total debt $5.5088 billion; net debt $5.0642 billion; cash at period end $444.62 million; total liabilities $5.7455 billion; total stockholders’ equity $2.0586 billion.
- Leverage and liquidity metrics: Debt to capitalization ~72.8%; debt ratio ~58.6%; cash flow from operations to debt ratio ~1.35%; interest coverage ~0.77x (reflecting a higher interest expense base in a rate environment).
- Guidance and outlook: 2025 net income per common share (diluted) expected to be between −$0.17 and −$0.11; FFO per fully diluted share expected to be between $1.42 and $1.48. Guidance includes consolidation of the unconsolidated fund and the new joint venture but foresees limited NOI contribution from the JV in 2025 due to 30% ownership and ongoing construction. Management indicated positive absorption is expected in 2025, aided by a leaner renewal pipeline and improving demand for larger office tenants.
- Development and capital allocation: Westwood development JV (17-story office, 247k sf) with 30% ownership; total project cost estimated at $150–$200 million; new secured non-recourse loan of $61.8 million at fixed rates (6% until July 2027, 6.25% thereafter) to cover part of the plan. A separate JV loan of $325 million (20% stake) was closed in December 2024, maturing in 2028, secured by five office properties with fixed-rate terms of 6.36% until 2028. Studio Plaza redevelopment in Burbank and Barrington Plaza redevelopment activity (712 residential units) are progressing, underpinning long-term growth.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
244.98M
-5.52%
-2.30%
Gross Profit
155.67M
244.40%
-0.21%
Operating Income
47.87M
56.13%
-1.70%
Net Income
-888.00K
97.82%
-119.23%
EPS
-0.01
95.83%
-133.33%
Key Financial Ratios
Gross Profit Margin
Excellent
63.50%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Good
19.50%
Operating margin is healthy and competitive within industry standards
Net Profit Margin
Weak
0.00%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.00%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.00%
Return on equity suggests inefficient capital allocation
Current Ratio
Strong
4.81
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
High Risk
2.68
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Negative
-874.88x
Negative earnings make P/E ratio not meaningful
Price to Book
Fair Value
1.51x
Price-to-book ratio reasonable for profitable companies
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