Douglas Emmett (D8K) Q3 2026 Earnings Report

The call was operationally optimistic, supported by four consecutive quarters of positive office absorption, improving occupancy, a strong leasing backlog, resilient residential performance, successful refinancing, and attractive acquisition opportunities. These positives were offset by higher interest expense, lower AFFO and same-property cash NOI, negative cash spreads, negative 2026 net income guidance, and ongoing refinancing-rate pressure. Overall, the highlights significantly outweighed the lowlights.

For 2026, Douglas Emmett still expects net income per common share diluted to be between $-0.20 and $-0.16 and fully diluted FFO per share to be between $1.39 and $1.43; guidance does not assume the impact of future property acquisitions or dispositions, common stock sales or repurchases, financings, property damage insurance recoveries, impairment charges, or other possible capital markets activities. Management said over 1,000 apartment units are expected to be added over the next few years, leases signed but not commenced will basically all commence over the next four quarters, the next one or two quarters is the majority of it, and most of the leasing not yet occupied should move in over the next three quarters. Studio Plaza is expected to be in a very good position, certainly within the next four quarters and maybe within the next two, although income might even take a little bit longer to roll in; management also said rents will likely follow once the leased rate has a strong up arrow on it and is moving up in the mid-80s.