Companies: 10,793     total market cap: $138.699 T
โ‚ฌEUR๐Ÿ‡ช๐Ÿ‡บโ‚นINR๐Ÿ‡ฎ๐Ÿ‡ณยฃGBP๐Ÿ‡ฌ๐Ÿ‡ง$CAD๐Ÿ‡จ๐Ÿ‡ฆ$AUD๐Ÿ‡ฆ๐Ÿ‡บ$NZD๐Ÿ‡ณ๐Ÿ‡ฟ$HKD๐Ÿ‡ญ๐Ÿ‡ฐ$SGD๐Ÿ‡ธ๐Ÿ‡ฌ
Douglas Emmett
DEI
#4810
Rank
$1.94 B
Marketcap
๐Ÿ‡บ๐Ÿ‡ธ United States
Country
$9.60
Share price
0.84%
Change (1 day)
-25.75%
Change (1 year)
๐Ÿ  Real estate๐Ÿ’ฐ Investment ๐Ÿ˜๏ธ REITs
Categories
  1. Douglas Emmett
  2. Quarterly Reports (10-Q)
  3. Financial Year FY2022 Q1

Douglas Emmett - 10-Q quarterly report FY2022 Q1


Text size:
000136425012/312022Q1false00013642502022-01-012022-03-3100013642502022-04-29xbrli:shares00013642502022-03-31iso4217:USD00013642502021-12-31iso4217:USDxbrli:shares0001364250nysedei:OfficeSegmentMembernysedei:RentalRevenueAndTenantRecoveryRevenueMember2022-01-012022-03-310001364250nysedei:OfficeSegmentMembernysedei:RentalRevenueAndTenantRecoveryRevenueMember2021-01-012021-03-310001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2022-01-012022-03-310001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2021-01-012021-03-310001364250nysedei:OfficeSegmentMember2022-01-012022-03-310001364250nysedei:OfficeSegmentMember2021-01-012021-03-310001364250nysedei:RentalRevenueMembernysedei:MultifamilySegmentMember2022-01-012022-03-310001364250nysedei:RentalRevenueMembernysedei:MultifamilySegmentMember2021-01-012021-03-310001364250nysedei:ParkingRevenueAndOtherIncomeMembernysedei:MultifamilySegmentMember2022-01-012022-03-310001364250nysedei:ParkingRevenueAndOtherIncomeMembernysedei:MultifamilySegmentMember2021-01-012021-03-310001364250nysedei:MultifamilySegmentMember2022-01-012022-03-310001364250nysedei:MultifamilySegmentMember2021-01-012021-03-3100013642502021-01-012021-03-310001364250us-gaap:CommonStockMember2021-12-310001364250us-gaap:CommonStockMember2020-12-310001364250us-gaap:CommonStockMember2022-01-012022-03-310001364250us-gaap:CommonStockMember2021-01-012021-03-310001364250us-gaap:CommonStockMember2022-03-310001364250us-gaap:CommonStockMember2021-03-310001364250us-gaap:AdditionalPaidInCapitalMember2021-12-310001364250us-gaap:AdditionalPaidInCapitalMember2020-12-310001364250us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001364250us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001364250us-gaap:AdditionalPaidInCapitalMember2022-03-310001364250us-gaap:AdditionalPaidInCapitalMember2021-03-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-01-012022-03-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-01-012021-03-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2022-03-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2021-03-310001364250us-gaap:NoncontrollingInterestMember2021-12-310001364250us-gaap:NoncontrollingInterestMember2020-12-310001364250us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001364250us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001364250us-gaap:NoncontrollingInterestMember2022-03-310001364250us-gaap:NoncontrollingInterestMember2021-03-3100013642502020-12-3100013642502021-03-310001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-01-012022-03-310001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-03-310001364250srt:OfficeBuildingMembernysedei:WhollyOwnedAndConsolidatedPropertiesMember2022-03-31utr:sqft0001364250nysedei:WhollyOwnedAndConsolidatedPropertiesMembersrt:MultifamilyMember2022-03-31nysedei:unit0001364250nysedei:WhollyOwnedAndConsolidatedPropertiesMember2022-03-31nysedei:parcel0001364250srt:OfficeBuildingMemberus-gaap:UnconsolidatedPropertiesMember2022-03-310001364250srt:OfficeBuildingMemberus-gaap:UnconsolidatedPropertiesMember2021-03-310001364250srt:ReportableLegalEntitiesMembersrt:OfficeBuildingMemberus-gaap:WhollyOwnedPropertiesMember2022-03-31nysedei:property0001364250srt:OfficeBuildingMemberus-gaap:WhollyOwnedPropertiesMember2022-03-310001364250srt:ReportableLegalEntitiesMembersrt:OfficeBuildingMemberus-gaap:ConsolidatedPropertiesMember2022-03-310001364250srt:OfficeBuildingMemberus-gaap:ConsolidatedPropertiesMember2022-03-310001364250srt:ReportableLegalEntitiesMembersrt:OfficeBuildingMemberus-gaap:UnconsolidatedPropertiesMember2022-03-310001364250srt:ReportableLegalEntitiesMembersrt:OfficeBuildingMember2022-03-310001364250srt:OfficeBuildingMember2022-03-310001364250srt:ReportableLegalEntitiesMemberus-gaap:WhollyOwnedPropertiesMembersrt:MultifamilyMember2022-03-310001364250us-gaap:WhollyOwnedPropertiesMembersrt:MultifamilyMember2022-03-310001364250srt:ReportableLegalEntitiesMemberus-gaap:ConsolidatedPropertiesMembersrt:MultifamilyMember2022-03-310001364250us-gaap:ConsolidatedPropertiesMembersrt:MultifamilyMember2022-03-310001364250srt:ReportableLegalEntitiesMembersrt:MultifamilyMember2022-03-310001364250srt:MultifamilyMember2022-03-310001364250srt:ReportableLegalEntitiesMember2022-03-310001364250srt:SubsidiariesMember2021-12-310001364250srt:SubsidiariesMember2022-03-31nysedei:apartment0001364250nysedei:SubsidiariesAndJointVenturesMember2022-03-310001364250nysedei:SubsidiariesAndJointVenturesMember2021-12-310001364250us-gaap:BuildingImprovementsMember2022-03-310001364250nysedei:AboveMarketTenantLeasesMember2022-03-310001364250nysedei:AboveMarketTenantLeasesMember2021-12-310001364250nysedei:AboveMarketGroundLeasesMember2022-03-310001364250nysedei:AboveMarketGroundLeasesMember2021-12-310001364250nysedei:BelowMarketTenantLeasesMember2022-03-310001364250nysedei:BelowMarketTenantLeasesMember2021-12-310001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2022-01-012022-03-310001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2021-01-012021-03-310001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2022-01-012022-03-310001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2021-01-012021-03-310001364250nysedei:PartnershipXMember2021-03-31xbrli:pure0001364250nysedei:PartnershipXMember2022-03-310001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-03-310001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-12-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2021-12-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Member2022-01-012022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Member2022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Member2021-12-310001364250us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Member2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Membersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Membersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Membersrt:SubsidiariesMember2021-12-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Memberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-03-310001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-12-310001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-03-310001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-12-310001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:TermLoanNonrecourseAtTwoPointThreeOnePercentageNov2026Member2022-01-012022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:TermLoanNonrecourseAtTwoPointThreeOnePercentageNov2026Member2022-03-310001364250us-gaap:SecuredDebtMembersrt:SubsidiariesMembernysedei:TermLoanNonrecourseAtTwoPointThreeOnePercentageNov2026Member2021-12-310001364250us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMembernysedei:TermLoanNonrecourseAtTwoPointThreeOnePercentageNov2026Member2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012027Membersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012027Membersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012027Membersrt:SubsidiariesMember2021-12-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012027Memberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingMay182028221Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingMay182028221Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-03-310001364250nysedei:TermLoanMaturingMay182028221Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-12-310001364250nysedei:TermLoanMaturingMay182028221Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-03-310001364250nysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-12-310001364250us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembernysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:MaximumMembersrt:SubsidiariesMember2022-03-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2022-03-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-12-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012029BMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012029BMembersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012029BMembersrt:SubsidiariesMember2021-12-310001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoansWithMaturityDateOfJun012029BMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtFourPointFiveFivePercentageJun012038Membersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtFourPointFiveFivePercentageJun012038Membersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtFourPointFiveFivePercentageJun012038Membersrt:SubsidiariesMember2021-12-310001364250nysedei:RevolvingCreditFacilityWithMaturityDate082123Memberus-gaap:LineOfCreditMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:RevolvingCreditFacilityWithMaturityDate082123Memberus-gaap:LineOfCreditMembersrt:SubsidiariesMember2022-03-310001364250nysedei:RevolvingCreditFacilityWithMaturityDate082123Memberus-gaap:LineOfCreditMembersrt:SubsidiariesMember2021-12-310001364250nysedei:RevolvingCreditFacilityWithMaturityDate082123Memberus-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfDecember192024Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfDecember192024Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-03-310001364250nysedei:TermLoanWithMaturityDateOfDecember192024Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2021-12-310001364250nysedei:TermLoanWithMaturityDateOfDecember192024Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfMay152027Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfMay152027Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-03-310001364250nysedei:TermLoanWithMaturityDateOfMay152027Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2021-12-310001364250nysedei:TermLoanWithMaturityDateOfMay152027Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfAugust192028Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfAugust192028Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-03-310001364250nysedei:TermLoanWithMaturityDateOfAugust192028Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2021-12-310001364250nysedei:TermLoanWithMaturityDateOfAugust192028Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:FannieMaeWithMaturityDateOfJune12029Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250nysedei:FannieMaeWithMaturityDateOfJune12029Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2022-03-310001364250nysedei:FannieMaeWithMaturityDateOfJune12029Memberus-gaap:SecuredDebtMembersrt:AffiliatedEntityMember2021-12-310001364250nysedei:FannieMaeWithMaturityDateOfJune12029Memberus-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:AffiliatedEntityMember2022-01-012022-03-310001364250us-gaap:SecuredDebtMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001364250nysedei:TermLoanMaturingJanuary12029266Memberus-gaap:SecuredDebtMembersrt:MinimumMembersrt:SubsidiariesMember2022-03-310001364250us-gaap:SecuredDebtMembernysedei:TermLoanAtFourPointFiveFivePercentageJun012038Member2022-01-012022-03-310001364250srt:MinimumMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Memberus-gaap:LineOfCreditMembersrt:SubsidiariesMember2022-01-012022-03-310001364250nysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:MaximumMemberus-gaap:LineOfCreditMembersrt:SubsidiariesMember2022-01-012022-03-310001364250us-gaap:LoansPayableMembernysedei:PartnershipXMember2022-01-012022-03-310001364250nysedei:TermLoanWithMaturityDateOfMay152027Memberus-gaap:SecuredDebtMembersrt:ScenarioForecastMembersrt:SubsidiariesMember2022-07-010001364250nysedei:EffectiveFixedRateLoansMember2022-03-310001364250nysedei:EffectiveFixedRateLoansMember2021-12-310001364250nysedei:FixedRateLoansMember2022-03-310001364250nysedei:FixedRateLoansMember2021-12-310001364250us-gaap:InterestExpenseMember2022-01-012022-03-310001364250us-gaap:InterestExpenseMember2021-01-012021-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2022-03-31nysedei:instrument0001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMembernysedei:InterestRateSwapAccretingPrincipalMember2022-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMember2021-12-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:InterestRateSwapMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-12-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2022-01-012022-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMember2021-01-012021-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-01-012022-03-310001364250us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-03-310001364250nysedei:UnconsolidatedFundsMember2022-03-310001364250nysedei:DouglasEmmettOperatingPartnershipMember2022-03-310001364250nysedei:OperatingPartnershipUnitsMember2022-01-012022-03-310001364250nysedei:OperatingPartnershipUnitsMember2021-01-012021-03-310001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2022-01-012022-03-310001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2021-01-012021-03-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001364250us-gaap:FairValueInputsLevel2Member2022-03-310001364250us-gaap:FairValueInputsLevel2Member2021-12-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2022-03-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-12-31nysedei:segment0001364250us-gaap:WhollyOwnedPropertiesMember2022-03-31nysedei:building0001364250nysedei:DevelopmentProjectsMemberstpr:CA2022-01-012022-03-310001364250stpr:HInysedei:DevelopmentProjectsMember2022-03-310001364250stpr:HInysedei:DevelopmentProjectsMember2022-01-012022-03-310001364250nysedei:DevelopmentProjectsMember2022-03-310001364250nysedei:RepositioningsCapitalExpenditureProjectsAndTenantImprovementsMember2022-03-310001364250us-gaap:LoansPayableMembernysedei:PartnershipXMember2022-03-310001364250us-gaap:LoansPayableMembernysedei:PartnershipXMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-012022-03-310001364250us-gaap:LoansPayableMembernysedei:PartnershipXMemberus-gaap:InterestRateSwapMember2022-03-310001364250us-gaap:LoansPayableMembernysedei:PartnershipXMemberus-gaap:InterestRateSwapMember2022-01-012022-03-310001364250srt:MultifamilyMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001364250srt:MultifamilyMemberus-gaap:SubsequentEventMember2022-04-260001364250us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:SubsequentEventMember2022-04-262022-04-260001364250us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityApril2029Memberus-gaap:SubsequentEventMember2022-04-260001364250us-gaap:OtherAssetsMember2022-03-31

United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number: 001-33106
nysedei-20220331_g1.jpg

Douglas Emmett, Inc.
(Exact name of registrant as specified in its charter)
Maryland20-3073047
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1299 Ocean Avenue, Suite 1000, Santa Monica, California
90401
(Address of principal executive offices)(Zip Code)

(310) 255-7700
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.01 par value per shareDEINew York Stock Exchange
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Class Outstanding atApril 29, 2022
Common Stock, $0.01 par value per share 175,784,137shares
1


DOUGLAS EMMETT, INC.
FORM 10-Q
Table of Contents
Page
3
6
PART I. FINANCIAL INFORMATION
7
 
7
 
8
 
9
10
 
11
 
13
     Overview
13
14
15
Ground Lease
16
17
18
     Other Assets
18
19
21
21
     Equity
23
     EPS
25
26
28
29
29
31
32
42
42
PART II. OTHER INFORMATION
 
43
43
43
43
43
43
43
 SIGNATURES
44

2
Glossary
Abbreviations used in this Report:

AOCIAccumulated Other Comprehensive Income (Loss)
ASCAccounting Standards Codification
ASUAccounting Standards Update
ATMAt-the-Market
BOMABuilding Owners and Managers Association
CEOChief Executive Officer
CFOChief Financial Officer
CodeInternal Revenue Code of 1986, as amended
COVID-19Coronavirus Disease 2019
DEIDouglas Emmett, Inc.
EPSEarnings Per Share
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FCAFinancial Conduct Authority
FDICFederal Deposit Insurance Corporation
FFOFunds From Operations
Fund XDouglas Emmett Fund X, LLC
FundUnconsolidated Institutional Real Estate Fund
GAAPGenerally Accepted Accounting Principles (United States)
JVJoint Venture
LIBORLondon Interbank Offered Rate
LTIP UnitsLong-Term Incentive Plan Units
NAREITNational Association of Real Estate Investment Trusts
OCIOther Comprehensive Income (Loss)
OP UnitsOperating Partnership Units
Operating PartnershipDouglas Emmett Properties, LP
Opportunity FundFund X Opportunity Fund, LLC
Partnership XDouglas Emmett Partnership X, LP
PCAOBPublic Company Accounting Oversight Board (United States)
REITReal Estate Investment Trust
ReportQuarterly Report on Form 10-Q
SECSecurities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
SOFRSecured Overnight Financing Rate
TRSTaxable REIT Subsidiary(ies)
USUnited States
USDUnited States Dollar
VIEVariable Interest Entity(ies)

3
Glossary
Defined terms used in this Report:

Annualized RentAnnualized cash base rent (excludes tenant reimbursements, parking and other revenue) before abatements under leases commenced as of the reporting date and expiring after the reporting date. Annualized Rent for our triple net office properties (in Honolulu and one single tenant building in Los Angeles) is calculated by adding expense reimbursements and estimates of normal building expenses paid by tenants to base rent. Annualized Rent does not include lost rent recovered from insurance and rent for building management use. Annualized Rent includes rent for our corporate headquarters in Santa Monica. We report Annualized Rent because it is a widely reported measure of the performance of equity REITs, and is used by some investors as a means to determine tenant demand and to compare our performance and value with other REITs. We use Annualized Rent to manage and monitor the performance of our office and multifamily portfolios.
Consolidated PortfolioIncludes all of the properties included in our consolidated results, including our consolidated JVs.
Funds From Operations (FFO)
We calculate FFO in accordance with the standards established by NAREIT by excluding gains (or losses) on sales of investments in real estate, gains (or losses) from changes in control of investments in real estate, real estate depreciation and amortization (other than amortization of right-of-use assets for which we are the lessee and amortization of deferred loan costs), and impairment write-downs of real estate from our net income (loss) (including adjusting for the effect of such items attributable to our consolidated JVs and our unconsolidated Fund, but not for noncontrolling interests included in our Operating Partnership). FFO is a non-GAAP supplemental financial measure that we report because we believe it is useful to our investors. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Report for a discussion of FFO.
Leased RateThe percentage leased as of the reporting date. Management space is considered leased. Space taken out of service during a repositioning or which is vacant as a result of a fire or other damage is excluded from both the numerator and denominator for calculating percentage leased. We report Leased Rate because it is a widely reported measure of the performance of equity REITs, and is also used by some investors as a means to determine tenant demand and to compare our performance with other REITs. We use Leased Rate to manage and monitor the performance of our office and multifamily portfolios.
Net Operating Income (NOI)
We calculate NOI as revenue less operating expenses attributable to the properties that we own and operate. NOI is calculated by excluding the following from our net income (loss): general and administrative expense, depreciation and amortization expense, other income, other expenses, income from unconsolidated Fund, interest expense, gains (or losses) on sales of investments in real estate and net income (loss) attributable to noncontrolling interests. NOI is a non-GAAP supplemental financial measure that we report because we believe it is useful to our investors. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Report for a discussion of our Same Property NOI.
Occupancy RateWe calculate the Occupancy Rate by excluding signed leases not yet commenced from the Leased Rate. Management space is considered occupied. Space taken out of service during a repositioning or which is vacant as a result of a fire or other damage is excluded from both the numerator and denominator for calculating Occupancy Rate. We report Occupancy Rate because it is a widely reported measure of the performance of equity REITs, and is also used by some investors as a means to determine tenant demand and to compare our performance with other REITs. We use Occupancy Rate to manage and monitor the performance of our office and multifamily portfolios.
Recurring Capital ExpendituresBuilding improvements required to maintain revenues once a property has been stabilized, and excludes capital expenditures for (i) acquired buildings being stabilized, (ii) newly developed space, (iii) upgrades to improve revenues or operating expenses or significantly change the use of the space, (iv) casualty damage and (v) bringing the property into compliance with governmental or lender requirements. We report Recurring Capital Expenditures because it is a widely reported measure of the performance of equity REITs, and is used by some investors as a means to determine our cash flow requirements and to compare our performance with other REITs. We use Recurring Capital Expenditures to manage and monitor the performance of our office and multifamily portfolios.
4
Glossary
Defined terms used in this Report (continued):
Rentable Square Feet
Based on the BOMA remeasurement and consists of leased square feet (including square feet with respect to signed leases not commenced as of the reporting date), available square feet, building management use square feet and square feet of the BOMA adjustment on leased space. We report Rentable Square Feet because it is a widely reported measure of the performance and value of equity REITs, and is also used by some investors to compare our performance and value with other REITs. We use Rentable Square Feet to manage and monitor the performance of our office portfolio.
Rental RateWe present two forms of Rental Rates - Cash Rental Rates and Straight-Line Rental Rates. Cash Rental Rate is calculated by dividing the rent paid by the Rentable Square Feet. Straight-Line Rental Rate is calculated by dividing the average rent over the lease term by the Rentable Square Feet.
Same Properties
Our consolidated properties that have been owned and operated by us in a consistent manner, and reported in our consolidated results during the entire span of both periods being compared. We exclude from our same property subset any properties that during the comparable periods were: (i) acquired, (ii) sold, held for sale, contributed or otherwise removed from our consolidated financial statements, (iii) that underwent a major repositioning project or were impacted by development activity, or suffered significant casualty loss that we believed significantly affected the properties' operating results. We also exclude rent received from ground leases.
Short-Term LeasesRepresents leases that expired on or before the reporting date or had a term of less than one year, including hold over tenancies, month to month leases and other short-term occupancies.
Total PortfolioIncludes our Consolidated Portfolio plus the properties owned by our Fund.
5
Forward Looking Statements


This Report contains forward-looking statements within the meaning of the Section 27A of the Securities Act and Section 21E of the Exchange Act. You can find many (but not all) of these statements by looking for words such as “believe”, “expect”, “anticipate”, “estimate”, “approximate”, “intend”, “plan”, “would”, “could”, “may”, “future” or other similar expressions in this Report. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements used in this Report, or those that we make orally or in writing from time to time, are based on our beliefs and assumptions, as well as information currently available to us. Actual outcomes will be affected by known and unknown risks, trends, uncertainties and factors beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution when relying on previously reported forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. Some of the risks and uncertainties that could cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include the following:

•adverse developments related to the COVID-19 pandemic;
•adverse economic or real estate developments affecting Southern California or Honolulu, Hawaii;
•competition from other real estate investors in our markets;
•decreasing rental rates or increasing tenant incentive and vacancy rates;
•defaults on, early terminations of, or non-renewal of leases by tenants;
•increases in interest rates or operating costs;
•insufficient cash flows to service our outstanding debt or pay rent on ground leases;
•difficulties in raising capital;
•inability to liquidate real estate or other investments quickly;
•adverse changes to rent control laws and regulations;
•environmental uncertainties;
•natural disasters;
•fire and other property damage;
•insufficient insurance, or increases in insurance costs;
•inability to successfully expand into new markets and submarkets;
•difficulties in identifying properties to acquire and failure to complete acquisitions successfully;
•failure to successfully operate acquired properties;
•risks associated with property development;
•risks associated with JVs;
•conflicts of interest with our officers and reliance on key personnel;    
•changes in zoning and other land use laws;
•adverse results of litigation or governmental proceedings;
•failure to comply with laws, regulations and covenants that are applicable to our business;
•possible terrorist attacks or wars;
•possible cyber attacks or intrusions;
•adverse changes to accounting rules;
•weaknesses in our internal controls over financial reporting;
•failure to maintain our REIT status under federal tax laws; and
•adverse changes to tax laws, including those related to property taxes.

For further discussion of these and other risk factors see Item 1A. "Risk Factors” in our 2021 Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and Item 1A. "Risk Factors" in this Report. This Report and all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date of this Report.

6

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Douglas Emmett, Inc.
Consolidated Balance Sheets
(Unaudited; In thousands, except share data)
 March 31, 2022December 31, 2021
Assets  
Investment in real estate, gross$11,841,693 $11,819,077 
Less: accumulated depreciation and amortization(3,096,857)(3,028,645)
Investment in real estate, net8,744,836 8,790,432 
Ground lease right-of-use asset7,461 7,464 
Cash and cash equivalents337,274 335,905 
Tenant receivables10,216 13,127 
Deferred rent receivables115,037 115,148 
Acquired lease intangible assets, net3,969 4,168 
Interest rate contract assets125,189 15,473 
Investment in unconsolidated Fund47,873 46,594 
Other assets48,459 25,721 
Total Assets$9,440,314 $9,354,032 
Liabilities  
Secured notes payable and revolving credit facility, net$5,013,876 $5,012,076 
Ground lease liability10,856 10,860 
Interest payable, accounts payable and deferred revenue154,932 145,460 
Security deposits56,346 55,285 
Acquired lease intangible liabilities, net22,714 24,710 
Interest rate contract liabilities6,667 69,930 
Dividends payable49,226 49,158 
Total liabilities5,314,617 5,367,479 
Equity  
Douglas Emmett, Inc. stockholders' equity:  
Common Stock, $0.01 par value, 750,000,000 authorized, 175,771,568 and 175,529,133 outstanding at March 31, 2022 and December 31, 2021, respectively
1,758 1,755 
Additional paid-in capital3,492,659 3,488,886 
Accumulated other comprehensive income (loss)83,029 (38,774)
Accumulated deficit(1,059,499)(1,035,798)
Total Douglas Emmett, Inc. stockholders' equity2,517,947 2,416,069 
Noncontrolling interests1,607,750 1,570,484 
Total equity4,125,697 3,986,553 
Total Liabilities and Equity$9,440,314 $9,354,032 

See accompanying notes to the consolidated financial statements.
7
Douglas Emmett, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)




 Three Months Ended March 31,
 20222021
Revenues  
Office rental  
Rental revenues and tenant recoveries$180,427 $168,179 
Parking and other income22,713 18,464 
Total office revenues203,140 186,643 
Multifamily rental  
Rental revenues31,228 27,083 
Parking and other income4,514 2,569 
Total multifamily revenues35,742 29,652 
Total revenues238,882 216,295 
Operating Expenses  
Office expenses67,374 62,178 
Multifamily expenses10,173 9,311 
General and administrative expenses11,240 9,571 
Depreciation and amortization89,365 92,797 
Total operating expenses178,152 173,857 
Other income367 351 
Other expenses(183)(163)
Income from unconsolidated Fund247 167 
Interest expense(34,902)(35,205)
Net income26,259 7,588 
Less: Net (income) loss attributable to noncontrolling interests(745)4,013 
Net income attributable to common stockholders$25,514 $11,601 
Net income per common share – basic and diluted$0.14 $0.06 
 
See accompanying notes to the consolidated financial statements.
8
Douglas Emmett, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited and in thousands)



 Three Months Ended March 31,
 20222021
Net income$26,259 $7,588 
Other comprehensive income: cash flow hedges174,434 76,469 
Comprehensive income200,693 84,057 
Less: Comprehensive income attributable to noncontrolling interests(53,376)(21,753)
Comprehensive income attributable to common stockholders$147,317 $62,304 
 

See accompanying notes to the consolidated financial statements.


9
Douglas Emmett, Inc.
Consolidated Statements of Equity
(Unaudited; in thousands, except per share data)


 Three Months Ended March 31,
 20222021
Shares of Common StockBeginning balance175,529 175,464 
Exchange of OP Units for common stock243 7 
Ending balance175,772 175,471 
Common StockBeginning balance$1,755 $1,755 
Exchange of OP units for common stock3 — 
Ending balance$1,758 $1,755 
Additional Paid-in CapitalBeginning balance$3,488,886 $3,487,887 
Exchange of OP Units for common stock3,941 109 
Repurchase of OP Units with cash(168)(48)
Ending balance$3,492,659 $3,487,948 
AOCIBeginning balance$(38,774)$(148,035)
Cash flow hedge adjustments121,803 50,703 
Ending balance$83,029 $(97,332)
Accumulated DeficitBeginning balance$(1,035,798)$(904,516)
Net income attributable to common stockholders25,514 11,601 
Dividends(49,215)(49,131)
Ending balance$(1,059,499)$(942,046)
Noncontrolling InterestsBeginning balance$1,570,484 $1,558,928 
Net income (loss) attributable to noncontrolling interests745 (4,013)
Cash flow hedge adjustments52,631 25,766 
Distributions(15,393)(13,724)
Exchange of OP Units for common stock(3,944)(109)
Repurchase of OP Units with cash(145)(57)
Stock-based compensation3,372 3,409 
Ending balance$1,607,750 $1,570,200 
 
Total EquityBeginning balance$3,986,553 $3,996,019 
Net income26,259 7,588 
Cash flow hedge adjustments174,434 76,469 
Repurchase of OP Units with cash(313)(105)
Dividends(49,215)(49,131)
Distributions(15,393)(13,724)
Stock-based compensation3,372 3,409 
Ending balance$4,125,697 $4,020,525 
Dividends declared per common share$0.28 $0.28 

See accompanying notes to the consolidated financial statements.
10
Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)


    
 Three Months Ended March 31,
20222021
Operating Activities  
Net income$26,259 $7,588 
Adjustments to reconcile net income to net cash provided by operating activities:  
Income from unconsolidated Fund(247)(167)
Depreciation and amortization89,365 92,797 
Net accretion of acquired lease intangibles(1,797)(3,114)
Straight-line rent111 (635)
Loan premium amortized and written off(113)(113)
Deferred loan costs amortized and written off2,012 2,021 
Amortization of stock-based compensation2,581 2,694 
Operating distributions from unconsolidated Fund244 164 
Change in working capital components:  
Tenant receivables2,911 188 
Interest payable, accounts payable and deferred revenue14,934 24,198 
Security deposits1,061 (2,778)
Other assets2,149 2,201 
Net cash provided by operating activities139,470 125,044 
Investing Activities  
Capital expenditures for improvements to real estate(28,544)(24,305)
Capital expenditures for developments(20,716)(55,206)
Insurance recoveries for damage to real estate785 — 
Deposit for property acquisition(25,000)— 
Capital distributions from unconsolidated Fund531 194 
Net cash used in investing activities(72,944)(79,317)
Financing Activities  
Proceeds from borrowings— 50,000 
Repayment of borrowings(202)(20,193)
Loan cost payments(101)(686)
Distributions paid to noncontrolling interests(15,393)(13,724)
Dividends paid to common stockholders(49,148)(49,130)
Repurchase of OP Units(313)(105)
Net cash used in financing activities(65,157)(33,838)
Increase in cash and cash equivalents and restricted cash1,369 11,889 
Cash and cash equivalents and restricted cash - beginning balance336,006 172,517 
Cash and cash equivalents and restricted cash - ending balance$337,375 $184,406 
11
Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)

Reconciliation of Ending Cash Balance
March 31, 2022March 31, 2021
Cash and cash equivalents$337,274 $184,274 
Restricted cash101 132 
Cash and cash equivalents and restricted cash$337,375 $184,406 


Supplemental Cash Flows Information

 Three Months Ended March 31,
 20222021
Operating Activities
Cash paid for interest, net of capitalized interest$32,785 $33,420 
Capitalized interest paid$2,801 $1,773 
Non-cash Investing Transactions
Accrual for real estate and development capital expenditures$32,407 $38,607 
Capitalized stock-based compensation for improvements to real estate and developments$791 $715 
Removal of fully depreciated and amortized buildings, building improvements, tenant improvements and lease intangibles$21,139 $19,143 
Removal of fully amortized acquired lease intangible assets$887 $50 
Removal of fully accreted acquired lease intangible liabilities$2,834 $7,134 
Non-cash Financing Transactions
Gain recorded in AOCI - consolidated derivatives$154,944 $58,346 
Gain (loss) recorded in AOCI - unconsolidated Fund's derivatives (our share)$1,774 $(1)
Dividends declared$49,215 $49,131 
Exchange of OP Units for common stock$3,944 $109 


See accompanying notes to the consolidated financial statements.

12
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited)



1. Overview

Organization and Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. Through our interest in our Operating Partnership and its subsidiaries, consolidated JVs and unconsolidated Fund, we focus on owning, acquiring, developing and managing a substantial market share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. The terms "us," "we" and "our" as used in the consolidated financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis.
At March 31, 2022, our Consolidated Portfolio consisted of (i) a 17.8 million square foot office portfolio, (ii) 4,415 multifamily apartment units and (iii) fee interests in two parcels of land from which we receive rent under ground leases. We also manage and own an equity interest in an unconsolidated Fund which, at March 31, 2022, owned an additional 0.4 million square feet of office space. We manage our unconsolidated Fund alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. As of March 31, 2022, our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following properties (including ancillary retail space):
 Consolidated PortfolioTotal
Portfolio
Office
Wholly-owned properties5353
Consolidated JV properties1616
Unconsolidated Fund properties—2
6971
Multifamily
Wholly-owned properties1111
Consolidated JV properties11
1212
Total8183

Basis of Presentation

The accompanying consolidated financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated JVs.  All significant intercompany balances and transactions have been eliminated in our consolidated financial statements.

We consolidate entities in which we are considered to be the primary beneficiary of a VIE or have a majority of the voting interest of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of that VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We do not consolidate entities in which the other parties have substantive kick-out rights to remove our power to direct the activities, most significantly impacting the economic performance, of that VIE. In determining whether we are the primary beneficiary, we consider factors such as ownership interest, management representation, authority to control decisions, and contractual and substantive participating rights of each party.

We consolidate our Operating Partnership through which we conduct substantially all of our business, and own, directly and through subsidiaries, substantially all of our assets, and are obligated to repay substantially all of our liabilities. The consolidated debt, excluding our consolidated JV's, was $3.41 billion as of March 31, 2022 and December 31, 2021. See Note 8. We also consolidate three JVs through our Operating Partnership. We consolidate our Operating Partnership and our three JVs because they are VIEs and we or our Operating Partnership are the primary beneficiary for each.

13
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
As of March 31, 2022, our consolidated VIE entities, excluding our Operating Partnership, had:
•aggregate consolidated assets of $3.59 billion (of which $3.26 billion related to investment in real estate), and
•aggregate consolidated liabilities of $1.71 billion (of which $1.64 billion related to debt).

As of December 31, 2021, our consolidated VIE entities, excluding our Operating Partnership, had:
•aggregate consolidated assets of $3.56 billion (of which $3.28 billion related to investment in real estate), and
•aggregate consolidated liabilities of $1.72 billion (of which $1.64 billion related to debt).

The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC in conformity with US GAAP as established by the FASB in the ASC. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in conformity with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim consolidated financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in our 2021 Annual Report on Form 10-K and the notes thereto. Any references to the number or class of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the PCAOB.

2. Summary of Significant Accounting Policies

We have not made any changes to our significant accounting policies disclosed in our 2021 Annual Report on Form 10-K.

Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Revenue Recognition

Rental revenues and tenant recoveries

We account for our rental revenues and tenant recoveries in accordance with Topic 842 "Leases". Rental revenues and tenant recoveries are included in: (i) Rental revenues and tenant recoveries under Office rental, and (ii) Rental revenues under Multifamily rental, in our consolidated statements of operations.

Collectibility

In accordance with Topic 842, we perform an assessment as to whether or not substantially all of the amounts due under a tenant’s lease agreement is deemed probable of collection. This assessment involves using a methodology that requires judgment and estimates about matters that are uncertain at the time the estimates are made, including tenant specific factors, specific industry conditions, and general economic trends and conditions. For leases where we have concluded it is probable that we will collect substantially all the lease payments due under those leases, we continue to record lease income on a straight-line basis over the lease term. For leases where we have concluded that it is not probable that we will collect substantially all the lease payments due under those leases, we limit the lease income to the lesser of the income recognized on a straight-line basis or cash basis. If our conclusion of collectibility changes, we will record the difference between the lease income that would have been recognized on a straight-line basis and cash basis as a current-period adjustment to rental revenues and tenant recoveries. We write-off tenant receivables and deferred rent receivables as a charge against rental revenues and tenant recoveries in the period we conclude that substantially all of the lease payments are not probable of collection. If we subsequently collect amounts that were previously written off then the amounts collected are recorded as an increase to our rental revenues and tenant recoveries. Charges for uncollectible tenant receivables and deferred rent receivables, which were primarily due to the impact of the COVID-19 pandemic, reduced our office revenues by $0.1 million and $1.8 million for the three months ended March 31, 2022 and 2021, respectively.
14
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Office parking revenues

We account for our office parking revenues in accordance with ASC 606 "Revenue from Contracts with Customers". Office parking revenues are included in Parking and other income under Office rental in our consolidated statements of operations. Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing. Office parking revenues were $19.0 million and $14.8 million for the three months ended March 31, 2022 and 2021, respectively. Office parking receivables, which are included in Tenant receivables in our consolidated balance sheets, were $0.8 million as of March 31, 2022 and December 31, 2021.

Income Taxes

We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.

New Accounting Pronouncements

Changes to US GAAP are implemented by the FASB in the form of ASUs.  We consider the applicability and impact of all ASUs. As of the date of this Report, the FASB has not issued any ASUs that we expect to be applicable and have a material impact on our consolidated financial statements.


3. Investment in Real Estate
The table below summarizes our investment in real estate:

(In thousands)March 31, 2022December 31, 2021
Land$1,150,821$1,150,821
Buildings and improvements(1)
9,359,7889,344,087
Tenant improvements and lease intangibles936,698935,639
Property under development(1)
394,386388,530
Investment in real estate, gross$11,841,693$11,819,077
__________________________________________________________________________________
(1) During the three months ended March 31, 2022, Property under development balances transferred to Building and improvements for real estate placed into service was $8.6 million.

Acquisitions and Dispositions

During the three months ended March 31, 2022, we did not purchase or sell any properties. See Note 17 regarding a residential property that we purchased in April 2022.












15
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
4. Ground Lease

We pay rent under a ground lease located in Honolulu, Hawaii, which expires on December 31, 2086. The rent is fixed at $733 thousand per year until February 28, 2029, after which it will reset to the greater of the existing ground rent or the market rent at the time.

As of March 31, 2022, the ground lease right-of-use asset carrying value was $7.5 million and the ground lease liability was $10.9 million.

Ground rent expense, which is included in Office expenses in our consolidated statements of operations, was $182 thousand for each of the three month periods ended March 31, 2022 and 2021.

The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of March 31, 2022:
Twelve months ending March 31:(In thousands)
2023$733 
2024733 
2025733 
2026733 
2027733 
Thereafter43,796 
Total future minimum lease payments$47,461 

16
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
5. Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles

 (In thousands)March 31, 2022December 31, 2021
Above-market tenant leases$5,519 $6,406 
Above-market tenant leases - accumulated amortization(2,440)(3,132)
Above-market ground lease where we are the lessor1,152 1,152 
Above-market ground lease - accumulated amortization(262)(258)
Acquired lease intangible assets, net$3,969 $4,168 
Below-market tenant leases$55,375 $58,209 
Below-market tenant leases - accumulated accretion(32,661)(33,499)
Acquired lease intangible liabilities, net$22,714 $24,710 

    
Impact on the Consolidated Statements of Operations

The table below summarizes the net amortization/accretion related to our above- and below-market leases:

 Three Months Ended March 31,
 (In thousands)20222021
Net accretion of above- and below-market tenant lease assets and liabilities(1)
$1,801 $3,118 
Amortization of an above-market ground lease asset(2)
(4)(4)
Total$1,797 $3,114 
______________________________________________
(1)    Recorded as a net increase to office and multifamily rental revenues.
(2)    Recorded as a decrease to office parking and other income.


17
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
6. Investment in Unconsolidated Fund

Description of our Fund

As of March 31, 2022 and 2021, we managed and owned an equity interest of 33.5% in an unconsolidated Fund, Partnership X, through which we and other investors in the Fund owned two office properties totaling 0.4 million square feet.
Partnership X pays us fees and reimburses us for certain expenses related to property management and other services we provide, which are included in Other income in our consolidated statements of operations. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents cash distributions we received from Partnership X:
Three Months Ended March 31,
 (In thousands)20222021
Operating distributions received$244 $164 
Capital distributions received531 194 
Total distributions received$775 $358 

Summarized Financial Information for Partnership X

The tables below present selected financial information for Partnership X.  The amounts presented reflect 100% (not our pro-rata share) of amounts related to Partnership X, and are based upon historical acquired book value:

 (In thousands)March 31, 2022December 31, 2021
Total assets$144,662 $139,171 
Total liabilities$118,512 $117,668 
Total equity$26,150 $21,503 

 Three Months Ended March 31,
 (In thousands)20222021
Total revenues$4,397 $4,002 
Operating income$1,296 $1,005 
Net income$622 $396 


7. Other Assets

 (In thousands)March 31, 2022December 31, 2021
Restricted cash$101 $101 
Prepaid expenses13,476 15,936 
Indefinite-lived intangibles1,988 1,988 
Deposits in escrow(1)
25,000 — 
Furniture, fixtures and equipment, net2,425 2,499 
Other5,469 5,197 
Total other assets$48,459 $25,721 
_______________________________________
(1) The balance as of March 31, 2022 is a deposit for a property we purchased in April 2022. See Note 17.
18
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
8. Secured Notes Payable and Revolving Credit Facility, Net
Description
Maturity
Date(1)
Principal Balance as of March 31, 2022Principal Balance as of December 31, 2021Variable Interest Rate
Fixed Interest
Rate(2)
Swap Maturity Date
(In thousands)
Consolidated Wholly Owned Subsidiaries
Term loan(3)
3/3/2025$335,000 $335,000 
LIBOR + 1.30%
3.84%3/1/2023
Fannie Mae loan(3)
4/1/2025102,400 102,400 
LIBOR + 1.25%
2.76%3/1/2023
Term loan(3)
8/15/2026415,000 415,000 
LIBOR + 1.10%
3.07%8/1/2025
Term loan(3)
9/19/2026400,000 400,000 
LIBOR + 1.15%
2.44%9/1/2024
Term loan(3)
9/26/2026200,000 200,000 
LIBOR + 1.20%
2.36%10/1/2024
Term loan(3)
11/1/2026400,000 400,000 
LIBOR + 1.15%
2.31%10/1/2024
Fannie Mae loan(3)
6/1/2027550,000 550,000 
LIBOR + 1.37%
3.16%6/1/2022
Term loan(3)
5/18/2028300,000 300,000 
LIBOR + 1.40%
2.21%6/1/2026
Term loan(4)
1/1/2029300,000 300,000 
SOFR + 1.56%
2.66%1/1/2027
Fannie Mae loan(3)
6/1/2029255,000 255,000 
LIBOR + 0.98%
3.26%6/1/2027
Fannie Mae loan(3)
6/1/2029125,000 125,000 
LIBOR + 0.98%
3.25%6/1/2027
Term loan(5)
6/1/203829,123 29,325 N/A4.55%N/A
Revolving credit facility(6)
8/21/2023— — 
LIBOR + 1.15%
N/AN/A
Total Wholly Owned Subsidiary Debt3,411,523 3,411,725 
Consolidated JVs
Term loan(3)
12/19/2024400,000 400,000 
LIBOR + 1.30%
3.47%1/1/2023
Term loan(3)(7)
5/15/2027450,000 450,000 
LIBOR + 1.35%
3.04%4/1/2025
Term loan(3)
8/19/2028625,000 625,000 
LIBOR + 1.35%
2.12%6/1/2025
Fannie Mae loan(3)
6/1/2029160,000 160,000 
LIBOR + 0.98%
3.25%7/1/2027
Total Consolidated Debt(8)
5,046,523 5,046,725 
Unamortized loan premium, net(9)
3,893 4,007 
Unamortized deferred loan costs, net(10)
(36,540)(38,656)
Total Consolidated Debt, net$5,013,876 $5,012,076 
_______________________________________________________________________
Except as noted below, our loans and revolving credit facility: (i) are non-recourse, (ii) are secured by separate collateral pools consisting of one or more properties, (iii) require interest-only monthly payments with the outstanding principal due upon maturity, and (iv) contain certain financial covenants which could require us to deposit excess cash flow with the lender under certain circumstances unless we (at our option) either provide a guarantee or additional collateral or pay down the loan within certain parameters set forth in the loan documents.  Certain loans with maturity date extension options require us to meet minimum financial thresholds in order to extend the loan maturity date.
(1)Maturity dates include extension options.
(2)Effective rate as of March 31, 2022. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees and loan premiums. See Note 10 for details of our interest rate swaps. See further below for details of our loan costs and loan premiums.
(3)The loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.
(4)The loan agreement includes a zero-percent SOFR floor. The corresponding swap does not include such a floor. The effective rate decreased from 3.42% to 2.66% on January 1, 2022 when a new swap replaced old swaps that expired.
(5)Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.
(6)$400.0 million revolving credit facility. Unused commitment fees range from 0.10% to 0.15%. The facility has a zero-percent LIBOR floor.
(7)The effective rate will decrease to 2.26% on July 1, 2022 when new swaps replace existing swaps that will expire.
(8)The table does not include our unconsolidated Fund's loan - see Note 16. See Note 13 for our fair value disclosures.
(9)Balances are net of accumulated amortization of $3.3 million and $3.2 million at March 31, 2022 and December 31, 2021, respectively.
(10)Balances are net of accumulated amortization of $48.2 million and $46.3 million at March 31, 2022 and December 31, 2021, respectively.
19
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Debt Statistics

The table below summarizes our consolidated fixed and floating rate debt:
(In thousands)Principal Balance as of March 31, 2022Principal Balance as of December 31, 2021
Aggregate swapped to fixed rate loans$5,017,400 $5,017,400 
Aggregate fixed rate loans29,123 29,325 
Total Debt$5,046,523 $5,046,725 

The table below summarizes certain consolidated debt statistics as of March 31, 2022:
Statistics for consolidated loans with interest fixed under the terms of the loan or a swap
Principal balance (in billions)$5.05
Weighted average remaining life (including extension options)5.2 years
Weighted average remaining fixed interest period2.8 years
Weighted average annual interest rate2.89%

Future Principal Payments

At March 31, 2022, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows:
Twelve months ending March 31:
Including Maturity Extension Options(1)
(In thousands)
2023$833 
2024871 
2025735,912 
2026103,354 
20271,415,999 
Thereafter2,789,554 
Total future principal payments$5,046,523 
________________________________________________
(1)     Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.

Loan Premium and Loan Costs

The table below presents loan premium and loan costs, which are included in Interest expense in our consolidated statements of operations:
 Three Months Ended March 31,
(In thousands)20222021
Loan premium amortized and written off$(113)$(113)
Deferred loan costs amortized and written off2,012 2,021 
Total$1,899 $1,908 



20
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
9. Interest Payable, Accounts Payable and Deferred Revenue

(In thousands)March 31, 2022December 31, 2021
Interest payable$12,467 $12,254 
Accounts payable and accrued liabilities98,740 83,150 
Deferred revenue43,725 50,056 
Total interest payable, accounts payable and deferred revenue$154,932 $145,460 


10. Derivative Contracts

We make use of interest rate swap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 8 regarding our debt and our consolidated JVs' debt that is hedged.

Derivative Summary

As of March 31, 2022, all of our interest rate swaps, including our consolidated JVs and our unconsolidated Fund's interest rate swaps, as summarized below, were designated as cash flow hedges:

Number of Interest Rate SwapsNotional
(In thousands)
Consolidated derivatives(1)(2)(4)(5)
35$5,017,400 
Unconsolidated Fund's derivatives(3)(4)(5)
2$115,000 
___________________________________________________
(1)The notional amount reflects 100%, not our pro-rata share, of our consolidated JVs' derivatives.
(2)The notional amount includes two swaps with a combined initial notional amount of $50.0 million, which will increase to $450.0 million on July 1, 2022 to replace existing swaps when they expire.
(3)The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage see Note 6.
(4)Our derivative contracts do not provide for right of offset between derivative contracts.
(5)See Note 13 for our derivative fair value disclosures.

Credit-risk-related Contingent Features

Our swaps include credit-risk related contingent features. For example, we have agreements with certain of our interest rate swap counterparties that contain a provision under which we could be declared in default on our derivative obligations if repayment of the underlying indebtedness that we are hedging is accelerated by the lender due to our default on the indebtedness. As of March 31, 2022, there have been no events of default with respect to our interest rate swaps, our consolidated JVs' interest rate swaps, or our Fund's interest rate swaps. We do not post collateral for our interest rate swap contract liabilities. The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, was as follows:
(In thousands)March 31, 2022December 31, 2021
Consolidated derivatives(1)
$9,290 $77,760 
Unconsolidated Fund's derivatives(2)
$— $— 
___________________________________________________
(1)The amounts reflect 100%, not our pro-rata share, of our consolidated JVs' derivatives.
(2)Our unconsolidated Fund did not have any derivatives in a liability position during the periods presented. For more information about our Fund, including our equity interest percentage, see Note 6.
21
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Counterparty Credit Risk

We are subject to credit risk from the counterparties on our interest rate swap contract assets because we do not receive collateral. We seek to minimize that risk by entering into agreements with a variety of counterparties with investment grade ratings. The fair value of our interest rate swap contract assets, including accrued interest and excluding credit risk adjustments, was as follows:
(In thousands)March 31, 2022December 31, 2021
Consolidated derivatives(1)
$122,129 $14,927 
Unconsolidated Fund's derivatives(2)
$7,572 $1,889 
___________________________________________________
(1)The amounts reflect 100%, not our pro-rata share, of our consolidated JVs' derivatives.
(2)The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. For more information about our Fund, including our equity interest percentage, see Note 6.

Impact of Hedges on AOCI and the Consolidated Statements of Operations

The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations:

(In thousands)Three Months Ended March 31,
 20222021
Derivatives Designated as Cash Flow Hedges:  
Consolidated derivatives:
Gains recorded in AOCI before reclassifications(1)
$154,944 $58,346 
Losses reclassified from AOCI to Interest Expense(1)
$17,649 $18,078 
Interest Expense presented in the consolidated statements of operations$(34,902)$(35,205)
Unconsolidated Fund's derivative (our share)(2):
Gains (losses) recorded in AOCI before reclassifications(1)
$1,774 $(1)
Losses reclassified from AOCI to Income from unconsolidated Fund(1)
$67 $46 
Income from unconsolidated Fund presented in the consolidated statements of operations$247 $167 
___________________________________________________
(1)See Note 11 for our AOCI reconciliation.
(2)We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6.

Future Reclassifications from AOCI

At March 31, 2022, our estimate of the AOCI related to derivatives designated as cash flow hedges that will be reclassified to earnings during the next twelve months as interest rate swap payments are made is as follows:

(In thousands)
Consolidated derivatives:
Gains to be reclassified from AOCI to Interest Expense$10,809 
Unconsolidated Fund's derivative (our share)(1):
Gains to be reclassified from AOCI to Income from unconsolidated Fund$366 
___________________________________________________
(1)    We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund. For more information about our Fund, including our equity interest percentage, see Note 6.

22
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
11.  Equity

Transactions
    
During the Three Months Ended March 31, 2022
•We acquired 243 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units.
•We acquired 9 thousand OP Units for $313 thousand in cash.

During the Three Months Ended March 31, 2021
•We acquired 7 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units.
•We acquired 4 thousand OP Units for $105 thousand in cash.

Noncontrolling Interests

Our noncontrolling interests consist of interests in our Operating Partnership and consolidated JVs which are not owned by us. As of March 31, 2022, noncontrolling interests in our Operating Partnership owned 30.8 million OP Units and fully-vested LTIP Units, which represented approximately 15% of our Operating Partnership's total outstanding interests, and we owned 175.8 million OP Units (to match our 175.8 million shares of outstanding common stock).

A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership.  Investors who own OP Units have the right to cause our Operating Partnership to acquire their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of acquisition, or, at our election, exchange their OP Units for shares of our common stock on a one-for-one basis. LTIP Units have been granted to our employees and non-employee directors as part of their compensation. These awards generally vest over a service period and once vested can generally be converted to OP Units provided our stock price increases by more than a specified hurdle.


Changes in our Ownership Interest in our Operating Partnership

The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:
 Three Months Ended March 31,
(In thousands)20222021
Net income attributable to common stockholders$25,514 $11,601 
Transfers from noncontrolling interests:
Exchange of OP Units with noncontrolling interests3,944 109 
Repurchase of OP Units from noncontrolling interests(168)(48)
Net transfers from noncontrolling interests3,776 61 
Change from net income attributable to common stockholders and transfers from noncontrolling interests$29,290 $11,662 



23
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
AOCI Reconciliation(1)

The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges:
Three Months Ended March 31,
(In thousands)20222021
Beginning balance$(38,774)$(148,035)
Consolidated derivatives:
Other comprehensive income before reclassifications154,944 58,346 
Reclassification of losses from AOCI to Interest Expense17,649 18,078 
Unconsolidated Fund's derivatives (our share)(2):
Other comprehensive income (loss) before reclassifications1,774 (1)
Reclassification of losses from AOCI to Income from unconsolidated Fund67 46 
Net current period OCI174,434 76,469 
OCI attributable to noncontrolling interests(52,631)(25,766)
OCI attributable to common stockholders121,803 50,703 
Ending balance$83,029 $(97,332)
___________________________________________________
(1)See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures.
(2)We calculate our share by multiplying the total amount for the Fund by our equity interest in the Fund.


Equity Compensation

On June 2, 2016, the Douglas Emmett 2016 Omnibus Stock Incentive Plan, as amended (the "2016 Plan"), became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett 2006 Omnibus Stock Incentive Plan (the "2006 Plan"), both of which allow for awards to our directors, officers, employees and consultants. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Grants after June 2, 2016 were awarded under the 2016 Plan, while grants prior to that date were awarded under the 2006 Plan (grants under the 2006 Plan remain outstanding according to their terms). Both plans are administered by the compensation committee of our board of directors. The table below presents our stock-based compensation expense:
Three Months Ended March 31,
(In thousands)20222021
Stock-based compensation expense, net$2,581 $2,694 
Capitalized stock-based compensation$791 $715 

24
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
12. EPS

We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain non-forfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS:

 Three Months Ended March 31,
 20222021
Numerator (In thousands):  
Net income attributable to common stockholders$25,514 $11,601 
Allocation to participating securities: Unvested LTIP Units(226)(219)
Net income attributable to common stockholders - basic and diluted$25,288 $11,382 
Denominator (In thousands):
Weighted average shares of common stock outstanding - basic and diluted(1)
175,656 175,464 
Net income per common share - basic and diluted$0.14 $0.06 
____________________________________________________
(1) Outstanding OP Units and vested LTIP Units are not included in the denominator in calculating diluted EPS, even though they may be exchanged under certain conditions for common stock on a one-for-one basis, because their associated net income (equal on a per unit basis to the Net income per common share - diluted) was already deducted in calculating Net income attributable to common stockholders. Accordingly, any exchange would not have any effect on diluted EPS. The table below presents the weighted average OP Units and vested LTIP Units outstanding for the respective periods:

 Three Months Ended March 31,
 (In thousands)20222021
OP Units29,365 28,203 
Vested LTIP Units1,592 1,871 
25
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
13. Fair Value of Financial Instruments

Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods.  Considerable judgment is necessary to interpret market data and determine an estimated fair value.  The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs.  The hierarchy is as follows:
Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.  
Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.  
Level 3 - inputs are unobservable assumptions generated by the reporting entity.

As of March 31, 2022, we did not have any fair value estimates of financial instruments using Level 3 inputs.

Financial instruments disclosed at fair value

Short term financial instruments

The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit line, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments.

Secured notes payable

See Note 8 for the details of our secured notes payable. We estimate the fair value of our consolidated secured notes payable by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and includes any maturity extension options. The table below presents the estimated fair value and carrying value of our secured notes payable (excluding our revolving credit facility), the carrying value includes unamortized loan premium and excludes unamortized deferred loan fees:

(In thousands)March 31, 2022December 31, 2021
Fair value$5,017,170 $5,017,494 
Carrying value$5,050,416 $5,050,732 


Ground lease liability

See Note 4 for the details of our ground lease. We estimate the fair value of our ground lease liability by calculating the present value of the future lease payments disclosed in Note 4 using our incremental borrowing rate. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs. The table below presents the estimated fair value and carrying value of our ground lease liability:

(In thousands)March 31, 2022December 31, 2021
Fair value$8,086 $8,861 
Carrying value$10,856 $10,860 


26
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Financial instruments measured at fair value

Derivative instruments

See Note 10 for the details of our derivatives. We present our derivatives in our consolidated balance sheets at fair value, on a gross basis, excluding accrued interest.  We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative.  The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own non-performance risk. Our derivatives are not subject to master netting arrangements.  The table below presents the estimated fair value of our derivatives:

(In thousands)March 31, 2022December 31, 2021
Derivative Assets:
Fair value - consolidated derivatives(1)
$125,189 $15,473 
Fair value - unconsolidated Fund's derivatives(2)
$7,564 $1,963 
Derivative Liabilities:
Fair value - consolidated derivatives(1)
$6,667 $69,930 
Fair value - unconsolidated Fund's derivatives(2)
$— $— 
____________________________________________________
(1)    Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets.
(2)    The amounts reflect 100%, not our pro-rata share, of our unconsolidated Fund's derivatives. Our pro-rata share of the amounts related to the unconsolidated Fund's derivatives is included in our Investment in unconsolidated Fund in our consolidated balance sheets. Our unconsolidated Fund did not have any derivatives in a liability position during the periods presented. See Note 6 for more information about our Fund, including our equity interest percentage, and see "Guarantees" in Note 16 regarding our Fund's derivatives.
27
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
14. Segment Reporting

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes.  We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate.  The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental.  The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources.  Therefore, depreciation and amortization expense is not allocated among segments.  General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The table below presents the operating activity of our reportable segments:

(In thousands)Three Months Ended March 31,
20222021
Office Segment
Total office revenues$203,140 $186,643 
Office expenses(67,374)(62,178)
Office segment profit135,766 124,465 
Multifamily Segment
Total multifamily revenues35,742 29,652 
Multifamily expenses(10,173)(9,311)
Multifamily segment profit25,569 20,341 
Total profit from all segments$161,335 $144,806 


The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders:

(In thousands)Three Months Ended March 31,
 20222021
Total profit from all segments$161,335 $144,806 
General and administrative expenses(11,240)(9,571)
Depreciation and amortization(89,365)(92,797)
Other income367 351 
Other expenses(183)(163)
Income from unconsolidated Fund247 167 
Interest expense(34,902)(35,205)
Net income26,259 7,588 
Less: Net (income) loss attributable to noncontrolling interests(745)4,013 
Net income attributable to common stockholders$25,514 $11,601 
28
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
15. Future Minimum Lease Rental Receipts

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement of certain operating expenses, and we own fee interests in two parcels of land from which we receive rent under ground leases. The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases for our consolidated properties at March 31, 2022:
Twelve months ending March 31: (In thousands)
2023$628,283 
2024530,024 
2025428,543 
2026332,702 
2027246,890 
Thereafter673,309 
Total future minimum base rentals(1)
$2,839,751 
___________________________________
(1)    Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage and antenna rent, (iv) tenant reimbursements, (v) straight-line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) percentage rents.  The amounts assume that early termination options held by tenants will not be exercised.


16. Commitments, Contingencies and Guarantees

Legal Proceedings

From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business.  Excluding ordinary, routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations.

Concentration of Risk

Tenant Receivables

We are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent office tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits or letters of credit from our tenants.  For the three months ended March 31, 2022 and 2021, no tenant accounted for more than 10% of our total revenues.  See our revenue recognition policy in Note 2 for the charges to revenue for uncollectible amounts for tenant receivables and deferred rent receivables.

Geographic Risk

All of our properties, including the properties of our consolidated JVs and unconsolidated Fund, are located in Los Angeles County, California and Honolulu, Hawaii, and we are therefore susceptible to adverse economic and regulatory developments, as well as natural disasters, in those markets.

29
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Swap Counterparty Credit Risk

We are subject to credit risk with respect to our interest rate swap counterparties that we use to manage the risk associated with our floating rate debt. We do not post or receive collateral with respect to our swap transactions. Our swap contracts do not provide for right of offset between derivative contracts. See Note 10 for the details of our interest rate contracts. We seek to minimize our credit risk by entering into agreements with a variety of counterparties with investment grade ratings.

Cash Balances

We have significant cash balances invested in a variety of short-term money market funds that are intended to preserve principal value and maintain a high degree of liquidity while providing current income. These investments are not insured against loss of principal and there is no guarantee that our investments in these funds will be redeemable at par value. We also have significant cash balances in bank accounts with high quality financial institutions with investment grade ratings.  Interest bearing bank accounts at each U.S. banking institution are insured by the FDIC up to $250 thousand.

Asset Retirement Obligations

Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control.  A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated.  Environmental site assessments have identified thirty-two buildings in our Consolidated Portfolio which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties are demolished or undergo major renovations.

As of March 31, 2022, the obligations to remove the asbestos from properties which are currently undergoing major renovations, or that we plan to renovate in the future, are not material to our consolidated financial statements. As of March 31, 2022, the obligations to remove the asbestos from our other properties have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligations.

Contractual Commitments

Development Projects

In West Los Angeles, we completed the construction of a 34-story high-rise apartment building with 376 apartments. We expect to place the building into service during the second quarter of 2022. In downtown Honolulu, we are converting a 25 story, 493,000 square foot office tower into approximately 493 apartments in phases over a number of years as the office space is vacated. As of March 31, 2022, we had an aggregate remaining contractual commitment for these and other development projects of approximately $58.9 million.

Other Contractual Commitments

As of March 31, 2022, we had an aggregate remaining contractual commitment for repositionings, capital expenditure projects and tenant improvements of approximately $30.2 million.

Guarantees

Partnership X Guarantees

Our unconsolidated Fund, Partnership X, has a $115.0 million floating-rate term loan that matures on September 14, 2028. Starting on October 1, 2021, the loan carries interest at LIBOR + 1.35% (with a zero-percent LIBOR floor), which has been effectively fixed at 2.19% until October 1, 2026 with interest rate swaps (which do not have zero-percent LIBOR floors). The loan is secured by two properties held by Partnership X and is non-recourse.

We have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve-outs for Partnership X's loan, and we have also guaranteed the related swaps. Partnership X has agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of March 31, 2022, assuming that LIBOR does not decrease below zero-percent, the maximum future interest payments for the swap were $4.4 million.
30
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
As of March 31, 2022, all of the obligations under the related loan and swap agreements have been performed in accordance with the terms of those agreements. See Note 6 for more information regarding Partnership X.


17. Subsequent Events

On April 26, 2022, we paid $330.0 million, excluding acquisition costs, to acquire a luxury multifamily apartment building with 120 units, located at 1221 Ocean Avenue in Santa Monica. We acquired the property through a new joint venture that we manage and in which we own a capital interest of 55%. The joint venture partly financed the acquisition with a $175.0 million secured, non-recourse interest-only term loan that matures in April 2029. We swap-fixed the interest rate on the loan at 3.90% using interest rate swaps, which expire on May 1, 2026. The acquired property's results of operations will be included in our consolidated operating results from the date of acquisition. As of March 31, 2022, we had a deposit in escrow of $25.0 million for the purchase of the property, which is included in Other assets on our consolidated balance sheet.



31

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our Forward Looking Statements disclaimer, and our consolidated financial statements and related notes in Part I, Item 1 of this Report. During the three months ended March 31, 2022, our results of operations were impacted by the COVID-19 pandemic and capital transactions - see "Impacts of the COVID-19 Pandemic on our Business" and "Acquisitions, Financings, Developments and Repositionings" further below.

Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. Through our interest in our Operating Partnership and its subsidiaries, our consolidated JVs and our unconsolidated Fund, we are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and in Honolulu, Hawaii. We focus on owning, acquiring, developing and managing a substantial market share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. As of March 31, 2022, our portfolio consisted of the following (including ancillary retail space):
Consolidated Portfolio(1)
Total Portfolio(2)
Office
Class A Properties 6971
Rentable Square Feet (in thousands)(3)
17,77518,160
Leased rate87.8%87.7%
Occupancy rate84.6%84.6%
Multifamily
Properties1212
Units4,4154,415
Leased rate99.7%99.7%
Occupied rate98.2%98.2%
______________________________________________________________________
(1) Our Consolidated Portfolio includes the properties in our consolidated results. Through our subsidiaries, we wholly-own 53 office properties totaling 13.6 million square feet and 11 residential properties with 4,065 apartments. Through three consolidated JVs, we partially own 16 office properties totaling 4.2 million square feet and one residential property with 350 apartments. Our Consolidated Portfolio also includes two wholly-owned land parcels from which we receive ground rent from ground leases to the owners of a Class A office building and a hotel (the land parcels are not included in the number of Class A Properties).
(2) Our Total Portfolio includes our Consolidated Portfolio as well as two properties totaling 0.4 million square feet owned by our unconsolidated Fund, Partnership X. See Note 6 to our consolidated financial statements in Item 1 of this Report for more information about Partnership X.
(3) As of March 31, 2022, we removed approximately 313,000 Rentable Square Feet of vacant space at an office building that we are converting to residential apartments. See "Acquisitions, Financings, Developments and Repositionings" further below.

Revenues by Segment and Location

During the three months ended March 31, 2022, revenues from our Consolidated Portfolio were derived as follows:
nysedei-20220331_g2.jpg____nysedei-20220331_g3.jpg
32

Impacts of the COVID-19 Pandemic on our Business

Our buildings have remained open and available to our tenants throughout the pandemic. The governmental authorities in the jurisdictions in which we primarily operate, California, Los Angeles, Beverly Hills and Santa Monica, passed COVID-19 pandemic relief ordinances of varying duration and scope (residential, retail, and office), and with varying exemptions, that generally prohibit evictions, late fees and interest and allow rent deferral over certain periods. While improving, our rent collections continue to be negatively impacted by the remaining impact of these ordinances and the pandemic.

Our results of operations for the three months ended March 31, 2022 generally compare favorably with three months ended March 31, 2021 due to the gradual recovery, better collections, lower write-offs of uncollectible receivables, higher tenant recoveries and higher parking income. Charges for uncollectible tenant receivables and deferred rent receivables, which were primarily due to the COVID-19 pandemic, reduced our rental revenues and tenant recoveries by $0.1 million and $1.8 million for the three months ended March 31, 2022 and March 31, 2021, respectively. If we subsequently collect amounts that were previously written off, then the amounts collected will be recorded as an increase to our rental revenues and tenant recoveries. See our revenue recognition accounting policy "Rental Revenues and Tenant Recoveries" in Note 2 to our consolidated financial statements in Item 1 of this Report regarding our accounting policy. It is unclear how the pandemic will impact our future collections.

Other considerations that could impact our future leasing, rent collections, and revenue include:

•How long the pandemic continues;
•Whether governmental authorities authorize any new tenant protections;
•Whether more tenants stop paying rent if their business worsens;
•How attendance in our buildings changes and impacts parking revenue or rent collection; and/or
•How leasing activity and occupancy will evolve, including any long-term trends after the pandemic ends.

Overall, we expect the pandemic to continue to adversely impact many parts of our business, and those impacts have been, and will continue, to be material. For more information about the risks to our business, see "Risk Factors” in Item 1A of our 2021 Annual Report on Form 10-K.

Acquisitions, Financings, Developments and Repositionings

Acquisitions

See Note 17 to our consolidated financial statements in Item 1 of this Report regarding a residential property that we purchased in April 2022.

Financings

During the first quarter of 2022:
•Interest rate swaps which hedged a $300.0 million interest-only term loan for one of our consolidated wholly- owned subsidiaries expired, and were replaced with an interest rate swap that reduced the term-loan swap-fixed interest rate to 2.66% from 3.42%.
See Notes 8 and 10 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivatives, respectively.

Developments
    
•Residential High-Rise Tower, Brentwood, California - "The Landmark Los Angeles"
In West Los Angeles, we completed the construction of a 34-story high-rise apartment building with 376 apartments. The tower was built on a site that is directly adjacent to a 394 thousand square foot office building, a one acre park, and a 712 unit residential property, all of which we own. We expect to place the building into service during the second quarter of 2022.
33

•1132 Bishop Street, Honolulu, Hawaii - "The Residences at Bishop Place"
In downtown Honolulu, we are converting a 25-story, 493 thousand square foot office tower into 493 rental apartments. This project is helping to address the severe shortage of rental housing in Honolulu and revitalize the central business district, where we own a significant portion of the Class A office space. As of March 31, 2022, we had delivered fifty-two-percent of the planned units and leased fifty-one-percent of the planned units. The conversion will continue in phases through 2025 as the remaining office space is vacated, therefore, the expected timing of the remaining spending is uncertain.
Repositionings

We often strategically purchase properties with large vacancies or expected near-term lease roll-over and use our knowledge of the property and submarket to reposition the property for the optimal use and tenant mix. In addition, we may reposition properties already in our portfolio. The work we undertake to reposition a building typically takes months or even years, and could involve a range of improvements from a complete structural renovation to a targeted remodeling of selected spaces. During the repositioning, the affected property may display depressed rental revenue and occupancy levels that impact our results and, therefore, comparisons of our performance from period to period.


Rental Rate Trends - Total Portfolio

Office Rental Rates

Our office rental rates were adversely impacted by the COVID-19 pandemic during 2020, 2021 and the three months ended March 31, 2022, although the lower rental rates for the respective periods were partly offset by lower tenant improvement costs. The table below presents the average annual rental rate per leased square foot and the annualized lease transaction costs per leased square foot for leases executed in our total office portfolio during the respective periods:
 Three Months EndedYear Ended December 31,
March 31, 20222021202020192018
Average straight-line rental rate(1)(2)
$48.83$44.99$45.26$49.65$48.77
Annualized lease transaction costs(3)
$6.16$4.77$5.11$6.02$5.80
___________________________________________________
(1)These average rental rates are not directly comparable from year to year because the averages are significantly affected from period to period by factors such as the buildings, submarkets, and types of space and terms involved in the leases executed during the respective reporting period. Because straight-line rent takes into account the full economic value during the full term of each lease, including rent concessions and escalations, we believe that it may provide a better comparison than ending cash rents, which include the impact of the annual escalations over the entire term of the lease.
(2)Reflects the weighted average straight-line Annualized Rent.
(3)Reflects the weighted average leasing commissions and tenant improvement allowances divided by the weighted average number of years for the leases. Excludes leases substantially negotiated by the seller in the case of acquired properties and leases for tenants relocated from space at the landlord's request.


34

Office Rent Roll

Our office rent roll continues to be adversely impacted by the COVID-19 pandemic during the three months ended March 31, 2022. The table below presents the rent roll for new and renewed leases per leased square foot executed in our total office portfolio:
Three Months Ended March 31, 2022
Rent Roll(1)(2)
Expiring
Rate(2)
New/Renewal Rate(2)
Percentage Change
Cash Rent$49.19$47.35(3.7)%
Straight-line Rent$44.62$48.839.4%
___________________________________________________
(1)Represents the average annual initial stabilized cash and straight-line rents per square foot on new and renewed leases signed during the period compared to the prior leases for the same space. Excludes leases with a term of twelve months or less, leases where the prior lease was terminated more than a year before signing of the new lease, leases for tenants relocated at the landlord's request, leases in acquired buildings where we believe the information about the prior agreement is incomplete or where we believe the base rent reflects other off-market inducements to the tenant, and other non-comparable leases.
(2)Our office rent roll can fluctuate from period to period as a result of changes in our submarkets, buildings and term of the expiring leases, making these metrics difficult to predict.

Multifamily Rental Rates

Our multifamily rental rates were adversely impacted by the COVID-19 pandemic in 2020, but improved in 2021 and the three months ended March 31, 2022. The table below presents the average annual rental rate per leased unit for new tenants:
 Three Months EndedYear Ended December 31,
March 31, 20222021202020192018
Average annual rental rate - new tenants(1)
$29,612$29,837$28,416$28,350$27,542
_____________________________________________________
(1)    These average rental rates are not directly comparable from year to year because of changes in the properties and units included. For example:
(i)     the average for 2019 increased from 2018 because we acquired The Glendon where rental rates were higher than the average in our portfolio, and
(ii)    the average for 2020 increased from 2019 because we added a significant number of units at our Bishop Place development in Honolulu, where the rental rates were higher than the average in our portfolio.

Multifamily Rent Roll

The rent on leases subject to rent change during the three months ended March 31, 2022 (new tenants and existing tenants undergoing annual rent review) was 7.3% higher on average than the prior rent on the same unit.



35

Occupancy Rates - Total Portfolio

Our office occupancy rates were adversely impacted by the COVID-19 pandemic during 2020, 2021 and the three months ended March 31, 2022. Our multifamily occupancy rates were adversely impacted by the COVID-19 pandemic during 2020, but improved in 2021 and the three months ended March 31, 2022. The tables below present the occupancy rates for our total office portfolio and multifamily portfolio:

 December 31,
Occupancy Rates(1) as of:
March 31, 20222021202020192018
Office portfolio84.6%84.9%87.4%91.4%90.3%
Multifamily portfolio(2)
98.2%98.0%94.2%95.2%97.0%

 Three Months EndedYear Ended December 31,
Average Occupancy Rates(1)(3):
March 31, 20222021202020192018
Office portfolio84.7%85.7%89.5%90.7%89.4%
Multifamily portfolio(2)
98.1%96.8%94.2%96.5%96.6%
___________________________________________________
(1)Occupancy rates include the impact of property acquisitions, most of whose occupancy rates at the time of acquisition were below that of our existing portfolio.
(2)The Occupancy Rate for our multifamily portfolio was impacted by our acquisition of The Glendon property in 2019, and new units at our Moanalua Hillside Apartments development in Honolulu in 2019 and 2018.
(3)Average occupancy rates are calculated by averaging the occupancy rates at the end of each of the quarters in the period and at the end of the quarter immediately prior to the start of the period.


Office Lease Expirations

As of March 31, 2022, assuming non-exercise of renewal options and early termination rights, we expect to see expiring square footage in our total office portfolio as follows:

nysedei-20220331_g4.jpg
____________________________________________________
(1) Average of the percentage of leases at March 31, 2019, 2020, and 2021 with the same remaining duration as the leases for the labeled year had at March 31, 2022. Acquisitions are included in the prior year average commencing in the quarter after the acquisition.
36

Comparison of three months ended March 31, 2022 to three months ended March 31, 2021

Our results in both periods were adversely affected by the COVID-19 pandemic. The current period generally compares favorably with the comparable period due to better collections, lower write-offs of uncollectible receivables, and higher tenant recoveries and parking income.

Three Months Ended March 31,Favorable (Unfavorable)
20222021Change%Commentary
 (In thousands)
Revenues
Office rental revenue and tenant recoveries$180,427 $168,179 $12,248 7.3 %The increase was primarily due to: (i) better collections and lower write-offs of uncollectible receivables, and (ii) an increase in tenant recoveries, partly offset by (iii) a decrease in rental revenues due to a decrease in occupancy and (iv) lower accretion from below-market leases.
Office parking and other income$22,713 $18,464 $4,249 23.0 %The increase was primarily due to an increase in parking income due to an increase in parking activity.
Multifamily revenue$35,742 $29,652 $6,090 20.5 %The increase was primarily due to: (i) an increase in rental revenues from higher occupancy and rental rates and better collections, (ii) new units at our Bishop Place development project in Hawaii, and (iii) and higher insurance recoveries for a property that was impacted by fire damage in 2020.
Operating expenses
Office rental expenses$67,374 $62,178 $(5,196)(8.4)%The increase was primarily due to an increase in janitorial, personnel, utility, insurance, repairs and maintenance and parking expenses.
Multifamily rental expenses$10,173 $9,311 $(862)(9.3)%The increase was primarily due to an increase in (i) utility expenses, (ii) personnel expenses, and (iii) rental expenses from our new units at our Bishop Place development project in Hawaii. The increase in those expenses was partly offset by a decrease in property taxes for a property that was impacted by fire damage in 2020.
General and administrative expenses$11,240 $9,571 $(1,669)(17.4)%The increase was primarily due to an increase in personnel and advocacy expenses.
Depreciation and amortization$89,365 $92,797 $3,432 3.7 %The decrease was primarily due to accelerated depreciation in the comparable period for our Bishop Place development project in Hawaii.
Non-Operating Income and Expenses
Other income$367 $351 $16 4.6 %The increase was primarily due an increase in interest income and an increase in income related to services we provide to our unconsolidated Fund.
Other expenses$(183)$(163)$(20)(12.3)%The increase was primarily due to an increase in expenses related to services we provide to our unconsolidated Fund.
Income from unconsolidated Fund$247 $167 $80 47.9 %The increase was due to an increase in the net income of Partnership X, which was primarily due to better collections and higher parking income.
Interest expense$(34,902)$(35,205)$303 0.9 %The decrease was primarily due to an increase in interest capitalized related to development activity.
37

Non-GAAP Supplemental Financial Measure: FFO

Usefulness to Investors

We report FFO because it is a widely reported measure of the performance of equity REITs, and is also used by some investors to identify the impact of trends in occupancy rates, rental rates and operating costs from year to year, excluding impacts from changes in the value of our real estate, and to compare our performance with other REITs. FFO is a non-GAAP financial measure for which we believe that net income (loss) is the most directly comparable GAAP financial measure. FFO has limitations as a measure of our performance because it excludes depreciation and amortization of real estate, and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations. FFO should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a measure of our liquidity or cash flow, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to the FFO of other REITs. See "Results of Operations" above for a discussion of the items that impacted our net income.

Comparison of three months ended March 31, 2022 to three months ended March 31, 2021

For the three months ended March 31, 2022, FFO increased by $13.8 million, or 15.4%, to $103.8 million, compared to $89.9 million for the three months ended March 31, 2021. The increase was primarily due to an increase in revenues from our office and multifamily portfolios. The increase in revenues from our office portfolio was primarily due to: (i) better collections and lower write-offs of uncollectible receivables, and (ii) higher tenant recoveries and parking income. The increase in revenues from our multifamily portfolio was primarily due to: (i) an increase in rental revenues from higher occupancy and rental rates and better collections, (ii) new units at our Bishop Place development project in Hawaii, and (iii) and higher insurance recoveries for a property that was impacted by fire damage in 2020.

Reconciliation to GAAP

The table below reconciles our FFO (the FFO attributable to our common stockholders and noncontrolling interests in our Operating Partnership - which includes our share of our consolidated JVs and our unconsolidated Fund's FFO) to net income attributable to common stockholders (the most directly comparable GAAP measure):
 Three Months Ended March 31,
(In thousands)20222021
Net income attributable to common stockholders$25,514 $11,601 
Depreciation and amortization of real estate assets89,365 92,797 
Net income (loss) attributable to noncontrolling interests745 (4,013)
Adjustments attributable to unconsolidated Fund(1)
694 708 
Adjustments attributable to consolidated JVs(2)
(12,555)(11,156)
FFO$103,763 $89,937 
_______________________________________________
(1)Adjusts for our share of Partnership X's depreciation and amortization of real estate assets.
(2)Adjusts for the net income (loss) and depreciation and amortization of real estate assets that is attributable to the noncontrolling interests in our consolidated JVs.
38

Non-GAAP Supplemental Financial Measure: Same Property NOI

Usefulness to Investors

We report Same Property NOI to facilitate a comparison of our operations between reported periods. Many investors use Same Property NOI to evaluate our operating performance and to compare our operating performance with other REITs, because it can reduce the impact of investing transactions on operating trends. Same Property NOI is a non-GAAP financial measure for which we believe that net income (loss) is the most directly comparable GAAP financial measure.  We report Same Property NOI because it is a widely recognized measure of the performance of equity REITs, and is used by some investors to identify trends in occupancy rates, rental rates and operating costs and to compare our operating performance with that of other REITs.  Same Property NOI has limitations as a measure of our performance because it excludes depreciation and amortization expense, and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations. Other REITs may not calculate Same Property NOI in the same manner. As a result, our Same Property NOI may not be comparable to the Same Property NOI of other REITs. Same Property NOI should be considered only as a supplement to net income (loss) as a measure of our performance and should not be used as a measure of our liquidity or cash flow, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends.


Comparison of three months ended March 31, 2022 to three months ended March 31, 2021

Our Same Properties for 2022 included 67 office properties, aggregating 17.6 million Rentable Square Feet, and 10 multifamily properties with an aggregate 3,449 units. The amounts presented include 100% (not our pro-rata share). Our Same Property results in both periods were adversely affected by the COVID-19 pandemic. The current period generally compares favorably with the comparable period due to better collections, lower write-offs of uncollectible receivables, and higher tenant recoveries and parking income.

Three Months Ended March 31,Favorable (Unfavorable)
20222021Change%Commentary
(In thousands)
Office revenues$200,019 $183,532 $16,487 9.0%The increase was primarily due to: (i) better collections and a decrease in write-offs of uncollectible receivables, (ii) an increase in tenant recoveries, and (iii) an increase in parking income due to higher parking activity.
Office expenses(66,177)(60,461)(5,716)(9.5)%The increase was primarily due to an increase in janitorial, personnel, utility, insurance, repairs and maintenance and parking expenses.
Office NOI133,842 123,071 10,771 8.8%
Multifamily revenues27,558 24,943 2,615 10.5%The increase was primarily due to an increase in rental revenues due to higher occupancy and rental rates and better collections.
Multifamily expenses(8,560)(7,760)(800)(10.3)%The increase was primarily due to an increase in personnel and utility expenses.
Multifamily NOI18,998 17,183 1,815 10.6%
Total NOI$152,840 $140,254 $12,586 9.0%

39

Reconciliation to GAAP

The table below presents a reconciliation of our Same Property NOI to net income attributable to common stockholders (the most directly comparable GAAP measure):

Three Months Ended March 31,
(In thousands)20222021
Same Property NOI$152,840 $140,254 
Non-comparable office revenues3,121 3,111 
Non-comparable office expenses(1,197)(1,717)
Non-comparable multifamily revenues8,184 4,709 
Non-comparable multifamily expenses(1,613)(1,551)
NOI161,335 144,806 
General and administrative expenses(11,240)(9,571)
Depreciation and amortization(89,365)(92,797)
Other income367 351 
Other expenses(183)(163)
Income from unconsolidated Fund247 167 
Interest expense(34,902)(35,205)
Net income26,259 7,588 
Less: Net (income) loss attributable to noncontrolling interests(745)4,013 
Net income attributable to common stockholders$25,514 $11,601 


Liquidity and Capital Resources

Short-term liquidity

Our short-term liquidity needs consist primarily of funds necessary for our operating activities, development, repositioning projects and dividends and distributions. During the three months ended March 31, 2022, we generated cash from operations of $139.5 million. As of March 31, 2022, we had $337.3 million of cash and cash equivalents, and we had no balance outstanding on our $400.0 million revolving credit facility. Our earliest term loan maturity is December 2024. Excluding acquisitions and debt refinancings, we expect to meet our short-term liquidity requirements through cash on hand, cash generated by operations and our revolving credit facility. See Note 8 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt.

Long-term liquidity

Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, development and debt refinancings. We do not expect to have sufficient funds on hand to cover these long-term cash requirements due to the requirement to distribute at least 90% of our income on an annual basis imposed by REIT federal tax rules. We plan to meet our long-term liquidity needs through long-term secured non-recourse debt, the issuance of equity securities, including common stock and OP Units, as well as property dispositions and JV transactions. We have an ATM program which would allow us, subject to market conditions, to sell up to $400.0 million of shares of common stock.

We only use property level, non-recourse debt. As of March 31, 2022, approximately 46% of our total office portfolio was unencumbered. To mitigate the impact of changing interest rates on our cash flows from operations, we generally enter into interest rate swap agreements with respect to our loans with floating interest rates.  These swap agreements generally expire two years before the maturity date of the related loan, during which time we can refinance the loan without any interest penalty. See Notes 8 and 10 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivative contracts, respectively.
40

Certain Contractual Obligations

See the following notes to our consolidated financial statements in Item 1 of this Report for information regarding our contractual commitments:

•Note 4 - minimum future ground lease payments;
•Note 8 - minimum future principal payments for our secured notes payable and revolving credit facility, and the interest rates that determine our future periodic interest payments; and
•Note 16 - contractual commitments.


Off-Balance Sheet Arrangements

Partnership X Debt

Our Fund, Partnership X, has its own secured non-recourse debt and interest rate swaps. We have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve-outs related to that loan, and we have also guaranteed the interest rate swaps. Partnership X has agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of March 31, 2022, all of the obligations under the respective loan and swap agreements have been performed in accordance with the terms of those agreements. See "Guarantees" in Note 16 to our consolidated financial statements in Item 1 of this Report for more information about our Fund's debt and swaps, and the respective guarantees.


Cash Flows

Comparison of three months ended March 31, 2022 to three months ended March 31, 2021

Our operating cash flows in both periods were adversely impacted by the COVID-19 pandemic.

Three Months Ended March 31,Increase (Decrease) In Cash
20222021%
(In thousands)
Net cash provided by operating activities(1)
$139,470 $125,044 $14,426 11.5 %
Net cash used in investing activities(2)
$(72,944)$(79,317)$6,373 8.0 %
Net cash used in financing activities(3)
$(65,157)$(33,838)$(31,319)(92.6)%
________________________________________________________________________
(1)    Our cash flows from operating activities are primarily dependent upon the occupancy and rental rates of our portfolio, the collectibility of tenant receivables, the level of our operating and general and administrative expenses, and interest expense.  The increase in cash from operating activities of $14.4 million was primarily due to an increase in revenues from our office and multifamily portfolios. The increase in revenues from our office portfolio was primarily due to better collections and higher tenant recoveries and parking income. The increase in revenues from our multifamily portfolio was primarily due to: (i) an increase in rental revenues from higher occupancy and rental rates and better collections, (ii) new units at our Bishop Place development project in Hawaii, and (iii) and higher insurance recoveries for a property that was impacted by fire damage in 2020.
(2)    Our cash flows from investing activities is generally used to fund property acquisitions, developments and redevelopment projects, and Recurring and non-Recurring Capital Expenditures. The increase in cash from investing activities of $6.4 million was primarily due to a decrease in capital expenditures for developments of $34.5 million, partly offset by a deposit for a property acquisition of $25.0 million and an increase in capital expenditures for improvements to real estate of $4.2 million.
(3)    Our cash flows from financing activities are generally impacted by our borrowings and capital activities, as well as dividends and distributions paid to common stockholders and noncontrolling interests, respectively.  The decrease in cash from financing activities of $31.3 million was primarily due to a decrease in net borrowings of $30.0 million.
41

Critical Accounting Policies

We have not made any changes to our critical accounting policies disclosed in our 2021 Annual Report on Form 10-K. Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with US GAAP, and which requires us to make estimates of certain items, which affect the reported amounts of our assets, liabilities, revenues and expenses. While we believe that our estimates are based upon reasonable assumptions and judgments at the time that they are made, some of our estimates could prove to be incorrect, and those differences could be material. Some of our estimates are subject to adjustment as we believe appropriate, based on revised estimates, and reconciliation to actual results when available.


Item 3.  Quantitative and Qualitative Disclosures about Market Risk

Hedging our Floating Rate Borrowings

As of March 31, 2022, all of our floating rate borrowings were hedged with interest rate swaps. Our use of these instruments exposes us to credit risk from the potential inability of our counterparties to perform under the terms of those agreements. We attempt to minimize this credit risk by contracting with a variety of financial counterparties with investment ratings.

Market Transition to SOFR from USD-LIBOR

On March 5, 2021, the FCA announced that USD-LIBOR will no longer be published after June 30, 2023. This announcement has several implications, including setting the spread that may be used to automatically convert contracts from USD-LIBOR to SOFR. Most of our floating rate borrowings and interest rate swaps are indexed to USD-LIBOR and we are monitoring this activity and evaluating the related risks in connection with transitioning contracts to SOFR - which include: (i) loan interest payments, (ii) swap interest payments, and (iii) the value of loans and swaps. While we currently expect USD-LIBOR to be available in substantially its current form until at least June 30, 2023, it is possible that USD-LIBOR will become unavailable prior to that time. This could occur, if, for example, sufficient banks decline to make submissions to the LIBOR administrator. In that case, the risks associated with the transition to SOFR will be accelerated and potentially magnified.

See Notes 8 and 10 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and interest rate swaps.

Item 4.  Controls and Procedures
 
As of March 31, 2022, the end of the period covered by this Report, we carried out an evaluation, under the supervision and with the participation of management, including our CEO and CFO, regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this Report. Based on the foregoing, our CEO and CFO concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports filed or submitted under the Exchange Act (i) is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our CEO and our CFO, as appropriate, to allow for timely decisions regarding required disclosure. There have not been any changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


42

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. Excluding ordinary routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations.


Item 1A.  Risk Factors

We are not aware of any material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” in our 2021 Annual Report on Form 10-K.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds
 
None.
 
Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None.

Item 6.  Exhibits
Exhibit NumberDescription
31.1
Certificate of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2
Certificate of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*
Certificate of CEO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*
Certificate of CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS
Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH
Inline XBRL Taxonomy Extension Schema Document.
101.CAL
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB
Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104Cover Page Interactive Data File (embedded within the Inline XBRL document)
________________________________________________
* In accordance with SEC Release No. 33-8212, these exhibits are being furnished, and are not being filed as part of this Report on Form 10-Q or as a separate disclosure document, and are not being incorporated by reference into any Securities Act registration statement.


43
SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 DOUGLAS EMMETT, INC.
Date:May 6, 2022By:/s/ JORDAN L. KAPLAN
  Jordan L. Kaplan
  President and CEO
Date:May 6, 2022By:/s/ PETER D. SEYMOUR
  Peter D. Seymour
  CFO

44

What is the market capitalization of a company?

The market capitalization sometimes referred as Marketcap, is the value of a publicly listed company.
In most cases it can be easily calculated by multiplying the share price with the amount of outstanding shares.

DISCLAIMER

CompaniesMarketCap is not associated in any way with CoinMarketCap.com
Stock prices are delayed, the delay can range from a few minutes to several hours.
Company logos are from the CompaniesLogo.com logo database and belong to their respective copyright holders. Companies Marketcap displays them for editorial purposes only.

Contact

For inquiries or if you want to report a problem write to hello@8marketcap.com

Links

- Privacy policy

- Terms and conditions

© 2025 CompaniesMarketcap.com