Q3 2024 Douglas Emmett Inc Earnings Call Transcript
Key Points
- Douglas Emmett Inc (DEI) leased over 1 million square feet of office space in the third quarter, including 350,000 square feet of new leases.
- The company achieved positive absorption of approximately 90,000 square feet, improving the portfolio leased rate by 50 basis points to 82%.
- Douglas Emmett Inc (DEI) raised its full-year guidance for FFO by $0.04, reflecting improved expectations for the fourth quarter.
- The residential portfolio remains nearly fully leased at 99.1%, with rents continuing to rise.
- The company is seeing encouraging signs of increased tenant confidence and interest in its repositioning projects, such as Studio Plaza.
- Revenue decreased by 1.8% compared to the third quarter of 2023, primarily due to lower office occupancy.
- FFO decreased by 3.8% to $0.43 per share, mainly due to lower office NOI.
- Same-property cash NOI decreased by 5.7% due to lower office NOI, partially offset by multi-family growth.
- There will be a drop in occupancy next quarter when Studio Plaza vacates, impacting short-term results.
- The company faces challenges with large tenant move-outs, such as Warner Bros, which will affect occupancy in the fourth quarter.
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 President 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 the course of 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,
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