EX-99.1 2 a2024q1epexhibit991.htm EX-99.1

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Executive Summary

We own and operate 18.0 million square feet of Class A office properties and 4,528 apartment units (excluding our residential development pipeline and the vacated Barrington Plaza units) in the premier coastal submarkets of Los Angeles and Honolulu.

Quarterly Results: For the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023:

•Our revenues decreased by 2.9% to $245.0 million, as increased revenue from new residential units, higher in-place office rents and increased parking revenue were more than offset by lower office occupancy, lower tenant recoveries, and the removal of Barrington Plaza apartments from the rental market.

•Our net income attributable to common stockholders decreased by 51.5% to net income of $8.9 million, or net income of $0.05 per diluted share, primarily due to higher interest expense and lower revenues, partially offset by lower operating expenses.

•Our FFO decreased by 8.7% to $90.1 million, or $0.45 per fully diluted share, primarily due to higher interest expense and lower revenues, partially offset by lower operating expenses.

•Our AFFO decreased by 8.2% to $74.7 million.

•Our same property Cash NOI increased by 0.7% to $146.1 million, reflecting lower expenses including some property tax refunds.

Leasing: During the first quarter, we signed 214 office leases covering 1.2 million square feet, including 202,000 square feet of new leases and 987,000 square feet of renewal leases. Renewals included a 250,000 square foot lease in Beverly Hills, extending the term for ten years through 2037. Comparing the office leases we signed during the first quarter to the expiring leases for the same space, straight-line rents increased by 23.8% and cash rents increased by 1.9%. Our multifamily portfolio remains essentially fully leased at 98.9%.

Balance sheet: At quarter end, we had cash and cash equivalents of $556.7 million. We have strong cash flow after dividends, no corporate level debt, and almost half of our office properties remain unencumbered.

Dividends: On April 16, 2024, we paid a quarterly cash dividend of $0.19 per common share, or $0.76 per common share on an annualized basis.

Guidance: First quarter FFO per share was above expectations due to lower operating expenses, and we expect straight-line revenue to be higher during the balance of the year. Nevertheless, we have left FFO guidance for the year unchanged, because we expect the operating expense savings and higher straight-line revenue to be offset by higher interest expense. As a result, we still expect Net Income Per Common Share - Diluted to be between $0.04 and $0.10, and our FFO per fully diluted share to be between $1.64 and $1.70. Our guidance does not include the impact of future property acquisitions or dispositions, stock sales or repurchases, financings, property damage insurance recoveries, impairment charges or other possible capital markets activities. See page 22.

NOTE: See the non-GAAP reconciliations for FFO & AFFO on page 8 and same property NOI on page 10.

See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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Table of Contents

COMPANY OVERVIEW
Corporate Data			3
Property Map			4
Board of Directors and Executive Officers			5
FINANCIAL RESULTS
Consolidated Balance Sheets			6
Consolidated Operating Results			7
Funds from Operations & Adjusted Funds From Operations			8
Same Property Statistics & Net Operating Income (NOI)			9
Same Property NOI Reconciliation			10
Financial Data for JVs & Fund			11
Loans			12
PORTFOLIO DATA
Office Portfolio Summary			13
Office Percentage Leased and In-Place Rents			14
Office Lease Diversification			15
Largest Office Tenants			16
Office Industry Diversification			17
Office Lease Expirations			18
Office Lease Expirations – Next Four Quarters			19
Office Leasing Activity			20
Multifamily Portfolio Summary			21
GUIDANCE
2024 Guidance			22
Reconciliation of 2024 Non-GAAP Guidance			23
DEFINITIONS			24

Forward Looking Statements (FLS)

This First Quarter 2024 Earnings Results and Operating Information, which we refer to as our Earnings Package (EP), supplements the information provided in our reports filed with the Securities and Exchange Commission (SEC).  It contains FLS within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements related to the expectations regarding the performance of our business, financial results, liquidity and capital resources and other non-historical statements. In some cases, these FLS can be identified by the use of words such as “expect,” "potential,” “continue,” “may,” “will,” “should,” “could,” “seek,” “project,” “intend,” “plan,” “estimate,” "anticipate,” or the negative version of these words or other similar words which are predictions of or indicate future events or trends and which do not relate solely to historical matters. FLS presented in this EP, and those that we may make orally or in writing from time to time, are based on our beliefs and assumptions.  Our actual results will be affected by known and unknown risks, trends, uncertainties and factors, some of which are beyond our control or ability to predict, including, but not limited to: adverse economic, political or real estate developments affecting Southern California or Honolulu, Hawaii; competition from other real estate investors in our markets; decreased rental rates or increased tenant incentives and vacancy rates; reduced demand for office space, including as a result of remote work and flexible working arrangements that allow work from remote locations other than the employer’s office premises; defaults on, early terminations of, or non-renewal of leases by tenants; increases in interest rates and operating costs, including due to inflation; insufficient cash flows to service our debt or pay rent on ground leases; difficulties in raising capital; inability to liquidate real estate or other investments quickly; difficulties in acquiring properties; failure to successfully operate properties; failure to maintain our REIT status; adverse changes in 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 or submarkets; risks associated with property development; conflicts of interest with our officers; reliance on key personnel; changes in zoning and other land use laws; adverse changes to tax laws, including those related to property taxes; possible terrorist attacks or wars; and other risks and uncertainties detailed in our Annual Report on Form 10-K for 2023, and other documents filed with the SEC. Although we believe that our assumptions underlying our FLS are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect.  As a result, our actual future results can be expected to differ from our expectations, and those differences could be material.  Accordingly, please use caution in relying on any FLS in this EP to anticipate future results or trends. This EP and all subsequent written and oral FLS 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 FLS.

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						Company Overview

Corporate Data

as of March 31, 2024

			Office Portfolio
						Consolidated						Total
			Properties			68						70
			Rentable square feet (in thousands)			17,595						17,981
			Leased rate			82.5		%				82.6		%
			Occupancy rate			80.8		%				80.9		%
			Multifamily Portfolio(1)
												Total
			Properties									14
			Units									4,528
			Leased rate									98.9		%

			Market Capitalization (in thousands, except price per share)
			Fully Diluted Shares outstanding as of March 31, 2024						201,874
			Common stock closing price per share (NYSE:DEI)						$	13.87
			Equity Capitalization						$	2,799,992

			Net Debt (in thousands)
						Consolidated						Our Share
			Debt principal(2)			$	5,569,819					$	4,641,149
			Less: cash and cash equivalents and loan collateral deposits(3)			(570,217)						(444,937)
			Net Debt			$	4,999,602					$	4,196,212

			Leverage Ratio (in thousands, except percentage)
			Pro Forma Enterprise Value						$	6,996,204
			Our Share of Net Debt to Pro Forma Enterprise Value						60		%

			AFFO Payout Ratio(4)
			Three months ended March 31, 2024						51.6		%

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(1)    Unit totals exclude units vacated as part of removing Barrington Plaza from the rental market. Leased rate excludes the impact of Barrington Plaza.

(2)    See page 12 for a reconciliation of consolidated debt principal and our share of debt principal to consolidated debt on the balance sheet.

(3)    The consolidated balance of $570.2 million includes our consolidated cash and cash equivalents of $556.7 million and a loan collateral deposit of $13.5 million deposited with a lender. Our share is calculated by starting with the consolidated balance of $570.2 million, then deducting the other owners' share of our JVs' cash and cash equivalents of $140.9 million and then adding our share of our unconsolidated Fund's cash and cash equivalents of $15.6 million. See note 4 to the debt table on page 12 regarding the loan collateral deposit.

(4)    Payout ratio based on $0.19 cent dividend payable to shareholders of record as of March 28, 2024.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Company Overview

Property Map

as of March 31, 2024

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						Company Overview

Board of Directors and Executive Officers

as of March 31, 2024

BOARD OF DIRECTORS

__________________________________________________________________________________________________________________________________

Dan A. Emmett			Our Chairman of the Board
Jordan L. Kaplan			Our Chief Executive Officer and President
Kenneth M. Panzer			Our Chief Operating Officer
Leslie E. Bider			Retired Executive and Investor
Dorene C. Dominguez			Chairwoman and CEO of Vanir Group of Companies
Dr. David T. Feinberg			Chairman, Oracle Health
Ray C. Leonard			President, Sugar Ray Leonard Foundation
Virginia A. McFerran			Technology and Data Science Advisor
Thomas E. O’Hern			Former CEO of The Macerich Company
William E. Simon, Jr.			Partner Emeritus, Simon Quick Advisors
Shirley Wang			Founder and CEO, Plastpro Inc.

EXECUTIVE OFFICERS

__________________________________________________________________________________________________________________________________

Jordan L. Kaplan			Chief Executive Officer and President
Kenneth M. Panzer			Chief Operating Officer
Peter D. Seymour			Chief Financial Officer
Kevin A. Crummy			Chief Investment Officer
Michele L. Aronson			Executive Vice President, General Counsel and Secretary

CORPORATE OFFICE

1299 Ocean Avenue, Suite 1000, Santa Monica, California 90401

Phone: (310) 255-7700

For more information, please visit our website at www.douglasemmett.com or contact:

Stuart McElhinney, Vice President, Investor Relations

(310) 255-7751

smcelhinney@douglasemmett.com

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						Financial Results

Consolidated Balance Sheets

(Unaudited; In thousands)

			March 31, 2024						December 31, 2023
Assets
Investment in real estate, gross			$	12,432,301					$	12,405,814
Less: accumulated depreciation and amortization			(3,721,673)						(3,652,630)
Investment in real estate, net			8,710,628						8,753,184
Ground lease right-of-use asset			7,445						7,447
Cash and cash equivalents			556,677						523,082
Tenant receivables			5,783						6,096
Deferred rent receivables			115,120						115,321
Acquired lease intangible assets, net			2,848						2,971
Interest rate contract assets			170,607						170,880
Investment in unconsolidated Fund			24,996						15,977
Other assets			42,963						49,260
Total assets			$	9,637,067					$	9,644,218
Liabilities
Secured notes payable, net			$	5,544,517					$	5,543,171
Ground lease liability			10,832						10,836
Interest payable, accounts payable and deferred revenue			153,235						131,237
Security deposits			62,428						61,958
Acquired lease intangible liabilities, net			17,373						19,838
Dividends payable			31,812						31,781
Total liabilities			5,820,197						5,798,821
Equity
Douglas Emmett, Inc. stockholders' equity:
Common stock			1,674						1,672
Additional paid-in capital			3,395,499						3,392,955
Accumulated other comprehensive income			118,999						115,917
Accumulated deficit			(1,313,573)						(1,290,682)
Total Douglas Emmett, Inc. stockholders' equity			2,202,599						2,219,862
Noncontrolling interests			1,614,271						1,625,535
Total equity			3,816,870						3,845,397
Total liabilities and equity			$	9,637,067					$	9,644,218

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

Consolidated Operating Results

(Unaudited; In thousands, except per share data)

									Three Months Ended March 31,
															2024						2023
Revenues
Office rental
Rental revenues and tenant recoveries(1)															$	169,726					$	176,345
Parking and other income															28,211						27,013
Total office revenues															197,937						203,358
Multifamily rental
Rental revenues															43,220						43,973
Parking and other income															3,812						5,062
Total multifamily revenues															47,032						49,035
Total revenues															244,969						252,393
Operating Expenses
Office expenses															67,220						72,768
Multifamily expenses															15,850						16,888
General and administrative expenses															11,571						10,940
Depreciation and amortization															95,769						93,176
Total operating expenses															190,410						193,772
Other income															7,044						3,283
Other expenses															(114)						(520)
(Loss) income from unconsolidated Fund															(26)						289
Interest expense															(55,332)						(45,511)
Net income															6,131						16,162
Net loss attributable to noncontrolling interests															2,778						2,211
Net income attributable to common stockholders															$	8,909					$	18,373
Net income per common share - basic and diluted															$	0.05					$	0.10
Dividends declared per common share															$	0.19					$	0.19
Weighted average shares of common stock outstanding - basic and diluted															167,326						175,765

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(1)Rental revenues and tenant recoveries include tenant recoveries of $9.1 million and $13.1 million for the three months ended March 31, 2024 and 2023, respectively.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

Funds From Operations & Adjusted Funds From Operations(1)

(Unaudited; in thousands, except per share data)

The table below presents a reconciliation of Net income attributable to common stockholders to Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO):

									Three Months Ended March 31,
															2024						2023
Funds From Operations (FFO)
Net income attributable to common stockholders															$	8,909					$	18,373
Depreciation and amortization of real estate assets															95,769						93,176
Net loss attributable to noncontrolling interests															(2,778)						(2,211)
Adjustments attributable to unconsolidated Fund(2)															1,011						745
Adjustments attributable to consolidated JVs(2)															(12,855)						(11,471)
FFO															$	90,056					$	98,612
Adjusted Funds From Operations (AFFO)
FFO															$	90,056					$	98,612
Straight-line rent															202						126
Net accretion of acquired above- and below-market leases															(2,343)						(3,037)
Loan costs, loan premium amortization and swap amortization															2,286						2,034
Recurring capital expenditures, tenant improvements and capitalized leasing expenses(3)															(23,657)						(27,249)
Non-cash compensation expense															5,427						5,473
Adjustments attributable to unconsolidated Fund(2)															175						(97)
Adjustments attributable to consolidated JVs(2)															2,570						5,540
AFFO															$	74,716					$	81,402
Weighted average shares of common stock outstanding - diluted															167,326						175,765
Weighted average units in our operating partnership outstanding															34,423						32,924
Weighted average fully diluted shares outstanding															201,749						208,689
Net income per common share - basic and diluted															$	0.05					$	0.10
FFO per share - fully diluted															$	0.45					$	0.47
Dividends paid per share(4)															$	0.19					$	0.19

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(1)Presents the FFO and AFFO attributable to our common stockholders and noncontrolling interests in our Operating Partnership, including our share of our consolidated JVs and our unconsolidated Fund.

(2)Adjusts for the portion of each other listed adjustment item on our share of the results of our unconsolidated Fund and for each other listed adjustment item that is attributed to the noncontrolling interests in our consolidated JVs.

(3)Under the GAAP lease accounting rules, we expense non-incremental leasing expenses (leasing expenses not directly related to the signing of a lease) and capitalize incremental leasing expenses. Since non-incremental leasing expenses are included in the calculation of net income attributable to common stockholders and FFO, the capitalized leasing expenses adjustment to AFFO only includes incremental leasing expenses.

(4)Reflects dividends paid within the respective periods.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

Same Property Statistics & Net Operating Income (NOI)(1)

(Unaudited; in thousands, except statistics)

						As of March 31,
						2024						2023
			Office Statistics
			Number of properties			66						66
			Rentable square feet (in thousands)			17,105						17,105
			Ending % leased			82.1		%				85.2		%
			Ending % occupied			80.3		%				83.0		%
			Quarterly average % occupied			80.4		%				83.1		%
			Multifamily Statistics
			Number of properties			11						11
			Number of units			3,569						3,569
			Ending % leased			98.9		%				99.1		%

						Three Months Ended March 31,												% Favorable
						2024						2023						(Unfavorable)
			Net Operating Income (NOI)
			Office revenues			$	190,438					$	196,148					(2.9)		%
			Office expenses			(66,383)						(71,946)						7.7		%
			Office NOI			124,055						124,202						(0.1)		%
			Multifamily revenues			35,672						35,672						—		%
			Multifamily expenses			(10,816)						(11,421)						5.3		%
			Multifamily NOI			24,856						24,251						2.5		%
			Total NOI			$	148,911					$	148,453					0.3		%
			Cash Net Operating Income (NOI)
			Office cash revenues			$	189,011					$	194,591					(2.9)		%
			Office cash expenses			(66,383)						(71,946)						7.7		%
			Office cash NOI			122,628						122,645						—		%
			Multifamily cash revenues			34,278						33,858						1.2		%
			Multifamily cash expenses			(10,816)						(11,421)						5.3		%
			Multifamily cash NOI			23,462						22,437						4.6		%
			Total Cash NOI			$	146,090					$	145,082					0.7		%

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(1) The amounts presented include 100% (not our pro-rata share). See page 10 for a reconciliation of net income attributable to common stockholders to these non-GAAP measures.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

Same Property NOI Reconciliation

(Unaudited and in thousands)

The tables below present a reconciliation of Net income attributable to common stockholders to Same Property NOI:

			Three Months Ended March 31,
			2024						2023
Net income attributable to common stockholders			$	8,909					$	18,373
Net loss attributable to noncontrolling interests			(2,778)						(2,211)
Net income			6,131						16,162
General and administrative expenses			11,571						10,940
Depreciation and amortization			95,769						93,176
Other income			(7,044)						(3,283)
Other expenses			114						520
Loss (income) from unconsolidated Fund			26						(289)
Interest expense			55,332						45,511
NOI			$	161,899					$	162,737
Same Property NOI by Segment
Same property office cash revenues			$	189,011					$	194,591
Non-cash adjustments per definition of NOI			1,427						1,557
Same property office revenues			190,438						196,148
Same property office cash expenses			(66,383)						(71,946)
Same Property Office NOI			124,055						124,202
Same property multifamily cash revenues			34,278						33,858
Non-cash adjustments per definition of NOI			1,394						1,814
Same property multifamily revenues			35,672						35,672
Same property multifamily cash expenses			(10,816)						(11,421)
Same Property Multifamily NOI			24,856						24,251
Same Property NOI			148,911						148,453
Non-comparable office revenues			7,499						7,210
Non-comparable office expenses			(837)						(822)
Non-comparable multifamily revenues			11,360						13,363
Non-comparable multifamily expenses			(5,034)						(5,467)
NOI			$	161,899					$	162,737

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

Financial Data for JVs & Fund

(Unaudited, in thousands)

			Three Months Ended March 31, 2024
			Wholly-Owned Properties						Consolidated JVs(1)						Unconsolidated Fund(2)
Revenues			$	185,372					$	59,597					$	3,823
Office and multifamily operating expenses			$	64,895					$	18,175					$	1,643
Straight-line rent			$	366					$	(568)					$	(773)
Above/below-market lease revenue			$	207					$	2,136					$	—
Cash NOI attributable to outside interests(3)			$	—					$	20,531					$	1,028
Our share of cash NOI(4)			$	119,904					$	19,323					$	1,925

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(1)    Represents stand-alone financial data (with property management fees excluded from operating expenses as a consolidating entry) for four consolidated JVs that we manage. We own a weighted average interest of approximately 46% (based on square footage) in the four JVs, which owned a combined sixteen Class A office properties totaling 4.2 million square feet and two residential properties with 470 apartments in our submarkets. We are entitled to (i) distributions based on invested capital, (ii) fees for property management and other services, (iii) reimbursement of certain acquisition-related expenses and certain other costs and (iv) additional distributions based on Cash NOI.

(2)    Represents stand-alone financial data (with property management fees excluded from operating expenses as a consolidating entry) for one unconsolidated Fund that we manage. We owned an interest of approximately 54% during January and February of 2024. We purchased an additional 20% interest on February 29, 2024 which increased our ownership interest in the Fund to 74%. The Fund owns two Class A office properties totaling 0.4 million square feet in our submarkets. We are entitled to (i) priority distributions, (ii) distributions based on invested capital, (iii) a carried interest if the investors’ distributions exceed a hurdle rate, (iv) fees for property management and other services and (v) reimbursement of certain costs.  

(3)    Represents the share of Cash NOI allocable under the applicable agreements to interests other than our Fully Diluted Shares.

(4)    Represents the share of Cash NOI allocable to our Fully Diluted Shares.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Financial Results

			Loans (As of March 31 2024, unaudited)
						Maturity Date(1)						Principal Balance (In Thousands)						Our Share(2) (In Thousands)						Effective Rate(3)						Swap Maturity Date
			Consolidated Wholly-Owned Subsidiaries
						3/3/2025						$	335,000					$	335,000					SOFR + 1.41%						N/A
						4/1/2025						102,400						102,400						SOFR + 1.36%						N/A
						8/15/2026						415,000						415,000						3.07%						8/1/2025
						9/19/2026						400,000						400,000						2.44%						9/1/2024
						9/26/2026						200,000						200,000						2.36%						10/1/2024
						11/1/2026						400,000						400,000						2.31%						10/1/2024
						6/1/2027			(4)			550,000						550,000						SOFR + 1.48%						N/A
						5/18/2028						300,000						300,000						2.21%						6/1/2026
						1/1/2029						300,000						300,000						2.66%						1/1/2027
						6/1/2029						255,000						255,000						3.26%						6/1/2027
						6/1/2029						125,000						125,000						3.25%						6/1/2027
						8/1/2033						350,000						350,000						SOFR + 1.37%						N/A
						6/1/2038			(5)			27,419						27,419						4.55%						N/A
						Subtotal						3,759,819						3,759,819
			Consolidated JVs
						12/19/2024						400,000						80,000						SOFR + 1.40%						N/A
						5/15/2027						450,000						400,500						2.26%						4/1/2025
						8/19/2028						625,000						187,500						2.12%						6/1/2025
						4/26/2029			(6)			175,000						96,250						3.90%						5/1/2026
						6/1/2029						160,000						32,000						3.25%						7/1/2027
			Total Consolidated Loans						(7)			$	5,569,819					$	4,556,069
			Unconsolidated Fund
						9/14/2028						$	115,000					$	85,080					2.19%						10/1/2026
			Total Loans															$	4,641,149

Except as noted below, our loans: (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 at 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 exercise those extension options.

(1)Maturity dates include the effect of extension options.

(2)"Our Share" is calculated by multiplying the principal balance by our share of the borrowing entity's equity, and is used to calculate the non-GAAP measure "Our Share of Net Debt" - see Corporate Data on page 3.

(3)Effective rate as of March 31, 2024. Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs.

(4)The loan is secured by four residential properties. For the portion secured by Barrington Plaza, in connection with the removal of that property from the rental market during 2023, we deposited $13.3 million of cash into an interest bearing collateral account with the lender. The lender will return the deposit at the earlier of August 2026 or when the loan is paid in full. The lender is treating the loan as a construction loan and we signed a construction completion guarantee.

(5)The loan requires monthly payments of principal and interest based upon a 30-year principal amortization schedule.

(6)A portion of this loan is guaranteed.

(7)Our consolidated debt on the balance sheet (see page 6) of $5.54 billion is calculated by adding $3.0 million of unamortized loan premium and deducting $28.3 million of unamortized deferred loan costs from our total consolidated loans of $5.57 billion.

			Statistics for consolidated loans with interest fixed under the terms of the loan or a swap
			Principal balance (in billions)			$3.83
			Weighted average remaining life (including extension options)			3.8 years
			Weighted average remaining fixed interest period			1.6 years
			Weighted average annual interest rate			2.66%

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Portfolio Summary

Total Office Portfolio as of March 31, 2024

			Region						Number of Properties						Our Rentable Square Feet						Region Rentable Square Feet(1)						Our Average Market Share(2)
			Los Angeles
			Westside(3)						52						9,999,051						40,523,615						34.4		%
			Valley						16						6,790,777						22,485,019						44.4
			Honolulu(3)						2						1,190,835						5,311,332						22.4
			Total / Average						70						17,980,663						68,319,966						37.4		%

_________________________________________________

(1)    The rentable square feet in each region is based on the Rentable Square Feet as reported in the 2024 first quarter CBRE Marketview report for our submarkets in that region.

(2)    Our market share is calculated by dividing our Rentable Square Feet by the applicable Region's Rentable Square Feet, weighted in the case of averages based on the square feet of exposure in our total portfolio to each submarket as follows:

			Region						Submarket						Number of Properties						Our Rentable Square Feet						Our Market Share(2)
			Westside						Brentwood						15						2,085,745						60.3		%
									Westwood						7						2,191,711						43.6
									Olympic Corridor						5						1,142,885						28.1
									Beverly Hills(3)						11						2,196,067						27.6
									Santa Monica						11						1,425,374						14.1
									Century City						3						957,269						9.0
			Valley						Sherman Oaks/Encino						12						3,488,995						55.1
									Warner Center/Woodland Hills						3						2,845,577						37.4
									Burbank						1						456,205						5.3
			Honolulu						Honolulu(3)						2						1,190,835						22.4
									Total / Weighted Average						70						17,980,663						37.4		%

_______________________________________________

(3)    In calculating market share, we adjusted the rentable square footage by: (i) removing a 218,000 square foot property located just outside the Beverly Hills city limits from both the numerator and the denominator, and (ii) removing 77,000 rentable square feet for an office building in Honolulu that we are converting to residential apartments from both our rentable square footage and that of the submarket.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Percentage Leased and In-Place Rents

Total Office Portfolio as of March 31, 2024

			Region(1)						Percent Leased						Annualized Rent(2)						Annualized Rent Per Leased Square Foot(2)						Monthly Rent Per Leased Square Foot(2)
			Los Angeles
			Westside						82.0		%				$	451,747,729					$	57.19					$	4.77
			Valley						82.1						196,895,262						36.22						3.02
			Honolulu						90.7						37,286,249						36.16						3.01
			Total / Weighted Average						82.6		%				$	685,929,240					$	47.74					$	3.98

_______________________________________________________________

(1)Regional data reflects the following underlying submarket data:

			Region						Submarket						Percent Leased																		Monthly Rent Per Leased Square Foot(2)
			Westside						Beverly Hills						85.3		%																$	4.98
									Brentwood						79.7																		4.02
									Century City						88.0																		4.73
									Olympic Corridor						75.7																		3.33
									Santa Monica						81.2																		6.99
									Westwood						81.9																		4.48
			Valley						Burbank						100.0																		5.08
									Sherman Oaks/Encino						84.9																		3.01
									Warner Center/Woodland Hills						75.7																		2.58
			Honolulu						Honolulu						90.7																		3.01
									Weighted Average						82.6		%																$	3.98

(2)    Does not include signed leases not yet commenced, which are included in percent leased but excluded from annualized rent.

			Recurring Office Capital Expenditures per Rentable Square Foot
			Three months ended March 31, 2024			$	0.06

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Lease Diversification

Total Office Portfolio as of March 31, 2024

Portfolio Tenant Size

Median

Average

Square feet

2,500

5,300

									Office Leases												Rentable Square Feet												Annualized Rent
			Square Feet Under Lease						Number						Percent						Amount						Percent						Amount						Percent
			2,500 or less						1,359						50.5		%				1,952,990						13.6		%				$	86,458,274					12.6		%
			2,501-10,000						1,011						37.5						4,936,772						34.4						228,646,054						33.3
			10,001-20,000						207						7.7						2,845,983						19.8						137,985,346						20.1
			20,001-40,000						85						3.2						2,301,067						16.0						106,092,387						15.5
			40,001-100,000						28						1.0						1,625,762						11.3						82,767,718						12.1
			Greater than 100,000						2						0.1						703,973						4.9						43,979,461						6.4
			Total for all leases						2,692						100.0		%				14,366,547						100.0		%				$	685,929,240					100.0		%

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Largest Office Tenants

Total Office Portfolio as of March 31, 2024

			Tenants paying 1% or more of our aggregate Annualized Rent:
			Tenant						Number of Leases						Number of Properties						Lease Expiration(1)						Total Leased Square Feet						Percent of Rentable Square Feet						Annualized Rent						Percent of Annualized Rent
			Warner Bros. Discovery						1						1						2024						456,205						2.5		%				$	27,787,941					4.0		%
			William Morris Endeavor(2)						1						1						2037						247,768						1.4						16,191,520						2.4
			UCLA(3)						15						8						2024-2033						227,071						1.3						12,989,596						1.9
			Morgan Stanley(4)						5						5						2025-2028						144,688						0.8						10,921,995						1.6
			Equinox Fitness(5)						6						5						2028-2038						185,236						1.0						10,407,103						1.5
			Total						28						20												1,260,968						7.0		%				$	78,298,155					11.4		%

______________________________________________________

(1)    Expiration dates are per lease (expiration dates do not reflect storage and similar leases).

(2)    Tenant has the option to terminate in 2033.

(3)    Square footage (rounded) expires as follows: 2 lease totaling 33,000 square feet in 2024; 4 leases totaling 89,000 square feet in 2025; 5 leases totaling 32,000 square feet in 2026; 1 leases totaling 51,000 square feet in 2027; 1 lease totaling 8,000 square feet in 2028; and 2 leases totaling 14,000 square feet in 2033. Tenant has options to terminate 51,000 square feet in 2025.

(4)    Square footage (rounded) expires as follows: 26,000 square feet in 2025; 89,000 square feet in 2027 and 30,000 square feet in 2028.

(5)    Square footage (rounded) expires as follows: 34,000 square feet in 2029; 46,000 square feet in 2035; 31,000 square feet in 2037 and 74,000 square feet in 2038.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Industry Diversification

Total Office Portfolio as of March 31, 2024

Percentage of Annualized Rent by Tenant Industry

			Industry						Number of Leases						Annualized Rent as a Percent of Total
			Legal						573						18.3		%
			Financial Services						366						15.6
			Entertainment						145						14.0
			Real Estate						316						12.8
			Health Services						392						9.3
			Accounting & Consulting						298						8.6
			Retail						158						5.0
			Technology						97						4.7
			Insurance						90						3.2
			Educational Services						42						2.8
			Public Administration						72						2.3
			Manufacturing & Distribution						54						1.3
			Advertising						33						0.9
			Other						56						1.2
			Total						2,692						100.0		%

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Lease Expirations

Total Office Portfolio as of March 31, 2024

(1)    Average of the percentage of leases expiring at March 31, 2021, 2022, and 2023 with the same remaining duration as the leases for the labeled year had at March 31, 2024. Acquisitions are included in the comparable average commencing in the quarter after the acquisition.

			Year of Lease Expiration						Number of Leases						Rentable Square Feet						Expiring Square Feet as a Percent of Total						Annualized Rent at March 31, 2024						Annualized Rent as a Percent of Total						Annualized Rent Per Leased Square Foot(1)						Annualized Rent Per Leased Square Foot at Expiration(2)
			Short Term Leases						71						294,219						1.6		%				$	12,476,152					1.8		%				$	42.40					$	42.60
			2024						432						2,023,444						11.2						98,845,265						14.4						48.85						49.16
			2025						602						2,543,090						14.1						119,850,661						17.4						47.13						48.96
			2026						485						2,209,781						12.3						101,529,213						14.8						45.95						49.07
			2027						358						1,856,023						10.3						90,168,166						13.2						48.58						54.02
			2028						277						1,476,842						8.2						68,462,687						10.0						46.36						53.09
			2029						177						1,020,338						5.7						46,779,002						6.8						45.85						52.49
			2030						89						805,054						4.5						40,914,841						5.9						50.82						60.75
			2031						69						467,364						2.6						22,574,235						3.3						48.30						59.62
			2032						37						407,837						2.3						19,669,305						2.9						48.23						61.18
			2033						52						354,678						2.0						17,700,322						2.6						49.91						68.06
			Thereafter						43						907,877						5.1						46,959,391						6.9						51.72						75.57
			Subtotal/weighted average						2,692						14,366,547						79.9		%				$	685,929,240					100.0		%				$	47.74					$	53.71
			Signed leases not commenced												305,565						1.7
			Available												3,131,578						17.4
			Building management use												106,798						0.6
			BOMA adjustment(3)												70,175						0.4
			Total/weighted average						2,692						17,980,663						100.0		%				$	685,929,240					100.0		%				$	47.74					$	53.71

___________________________________________________

(1)Represents annualized rent at March 31, 2024 divided by leased square feet.

(2)Represents annualized rent at expiration divided by leased square feet.

(3)Represents the square footage adjustments for leases that do not reflect BOMA remeasurement.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Lease Expirations - Next Four Quarters

Total Office Portfolio as of March 31, 2024

									Q2 2024						Q3 2024						Q4 2024						Q1 2025
			Los Angeles
			Westside						289,009						231,962						353,625						358,734
			Valley						174,672						639,278						232,517						262,523
			Honolulu						10,475						49,356						42,550						26,659
			Expiring Square Feet(1)						474,156						920,596						628,692						647,916
			Percentage of Portfolio						2.6		%				5.1		%				3.5		%				3.6		%
			Los Angeles
			Westside						$56.73						$55.77						$54.88						$57.63
			Valley						$32.89						$53.22						$32.02						$34.17
			Honolulu						$29.13						$37.12						$32.57						$35.88
			Expiring Rent per Square Foot(2)						$47.34						$53.00						$44.92						$47.23

________________________________________________________

(1)Includes leases with an expiration date in the applicable period where the space had not been re-leased as of March 31, 2024, other than 294,219 square feet of Short-Term Leases.

(2)Fluctuations in this number primarily reflect the mix of buildings/submarkets involved, as well as the varying terms and square footage of the individual leases expiring. As a result, the data in this table should only be extrapolated with caution. While the following table sets forth data for our underlying submarkets, that data is even more influenced by such issues:

															Next Four Quarters
			Region						Submarket						Expiring SF						Expiring Rent per SF
			Westside						Beverly Hills						209,054						$61.61
									Brentwood						295,567						$49.60
									Century City						136,993						$58.43
									Olympic Corridor						180,220						$43.55
									Santa Monica						126,920						$81.48
									Westwood						284,576						$55.09
			Valley						Sherman Oaks/Encino						419,728						$36.96
									Warner Center/Woodland Hills						433,057						$29.75
									Burbank						456,205						$60.91
			Honolulu						Honolulu						129,040						$34.71

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Office Leasing Activity

Total Office Portfolio during the Three Months ended March 31, 2024

			Net Absorption During Quarter			(0.72)%

			Office Leases Signed During Quarter			Number of Leases						Rentable Square Feet						Weighted Average Lease Term (months)1
			New leases			74						201,838						62
			Renewal leases			140						986,629						87
			All leases			214						1,188,467						82

			Change in Rental Rates for Office Leases Executed during the Quarter(1)
						Expiring Rate(1)						New/Renewal Rate(1)						Percentage Change
			Cash Rent			$54.60						$55.66						1.9%
			Straight-line Rent			$47.48						$58.80						23.8%

			Average Office Lease Transaction Costs
						Lease Transaction Costs per SF						Lease Transaction Costs per Annum
			New leases signed during the quarter			$23.95						$5.64
			Renewal leases signed during the quarter			$37.07						$6.16
			All leases signed during the quarter			$35.21						$6.11

________________________________________________________________

(1)Change in rental rate and average renewal lease term exclude leases with a term of twelve months or less. Change in rental rate represents the average annual initial stabilized cash and straight-line rents per square foot on new and renewed leases signed during the quarter compared to the prior leases for the same space. Change in rental rate metrics exclude 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.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Portfolio Data

Multifamily Portfolio Summary

as of March 31, 2024

Annualized Rent by Submarket

			Submarket						Number of Properties						Number of Units						Units as a Percent of Total
			Los Angeles
			Santa Monica						3						940						21		%
			West Los Angeles(1)						7						1,101						24		%
			Honolulu						4						2,487						55		%
			Total						14						4,528						100		%
			Submarket						Percent Leased						Annualized Rent(2)						Monthly Rent Per Leased Unit
			Los Angeles
			Santa Monica						97.4		%				$	48,360,060					$	4,409
			West Los Angeles(3)						98.6		%				53,928,972						4,771
			Honolulu						99.6		%				68,215,776						2,301
			Total / Weighted Average						98.9		%				$	170,504,808					$	3,284

			Recurring Multifamily Capital Expenditures per Unit (2)
			Three months ended March 31, 2024			$	198

________________________________________________________________

(1)    Excludes units vacated as part of removing Barrington Plaza from the rental market.

(2) The multifamily portfolio also includes 87,268 square feet and annualized rent of $3,003,114 consisting of ancillary retail space at three properties and remaining office space at a building undergoing conversion from office to residential, which are not included in this table.

(3)    Excludes impact of Barrington Plaza.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Guidance

2024 Guidance(1)

Metric			Per Share
Net income per common share - diluted			$0.04 to $0.10
FFO per share - fully diluted			$1.64 to $1.70

Assumptions

Metric			Assumption Range			Compared to Prior Assumption
Average Office Occupancy			78% to 81%			Unchanged
Residential Leased Rate			Essentially fully leased			Unchanged
Same Property Cash NOI Growth			-4.0% to -2.5%			Unchanged
Above/Below Market Net Revenue			$6 to $10 million			Unchanged
Straight-line Revenue			$2 to $5 million			Revised
G & A Expenses			$48 to $52 million			Unchanged
Interest Expense			$225 to $235 million			Revised
Weighted average fully diluted shares outstanding			202.0 million			Unchanged

________________________________________________________________

(1) All of our assumptions include 100% of our consolidated JVs share, not our pro rata share. Except as disclosed, our guidance does not include the impact of future property acquisitions or dispositions, common stock sales or repurchases, financings, property damage insurance recoveries, impairment charges or other possible capital markets activities.

The guidance and representative assumptions on this page are forward looking statements, subject to the safe harbor contained at the beginning of this Earnings Package, and reflect our views of current and future market conditions. Ranges represent a set of likely assumptions, but actual results could fall outside the ranges presented. Only a few of our assumptions underlying our guidance are disclosed above, and our actual results will be affected by known and unknown risks, trends, uncertainties and other factors, some of which are beyond our control or ability to predict. Although we believe that the assumptions underlying our guidance are reasonable, they are not guarantees of future performance and some of them will inevitably prove to be incorrect.  As a result, our actual future results can be expected to differ from our expectations, and those differences could be material. See page 23 for a reconciliation of our Non-GAAP guidance.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Guidance

Reconciliation of 2024 Non-GAAP Guidance(1)

(Unaudited; in millions, except per share amounts)

Reconciliation of our guided Net income per common share - diluted to FFO per share - fully diluted:

Reconciliation of net income attributable to common stockholders to FFO			Low						High
Net income attributable to common stockholders			$	7.4					$	17.4
Adjustments for depreciation and amortization of real estate assets			395.0						385.0
Adjustments for noncontrolling interests, consolidated JVs and unconsolidated Fund			(71.1)						(59.0)
FFO			$	331.3					$	343.4
Weighted average fully diluted shares outstanding			High						Low
Weighted average shares of common stock outstanding - diluted			167.4						167.4
Weighted average units in our operating partnership outstanding			34.6						34.6
Weighted average fully diluted shares outstanding			202.0						202.0
Per share			Low						High
Net income per common share - diluted			$	0.04					$	0.10
FFO per share - fully diluted			$	1.64					$	1.70

_____________________________________________

(1) Our guidance does not include the impact of future property acquisitions or dispositions, common stock sales or repurchases, financings, property damage insurance recoveries, if any, or other possible capital markets activities or impairment charges. The reconciliation should be used as an example only, with the numbers presented only as representative assumptions. Ranges represent a set of likely assumptions, but actual results could fall outside the ranges presented.

All assumptions are forward looking statements, subject to the safe harbor contained at the beginning of this Earnings Package, and reflect our views of current and future market conditions. Our actual results will be affected by known and unknown risks, trends, uncertainties and other factors, some of which are beyond our control or ability to predict. Although we believe that the assumptions underlying the guidance are reasonable, they are not guarantees of future performance and some of them will inevitably prove to be incorrect.  As a result, our actual future results can be expected to differ from our expectations, and those differences could be material.

NOTE:  See the "Definitions" section for definitions of certain terms used in this Earnings Package.

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						Definitions

Adjusted Funds From Operations (AFFO):  We calculate AFFO from FFO by (i) eliminating the impact on FFO of straight-line rent; amortization/accretion of acquired above/below market leases; loan costs such as amortization/accretion of loan premiums/discounts; amortization and hedge ineffectiveness of interest rate contracts; amortization/expense of loan costs; non-cash compensation expense, and (ii) subtracting recurring capital expenditures, tenant improvements and capitalized leasing expenses (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 calculation of fully diluted equity). Recurring capital expenditures, tenant improvements and leasing expenses are those required to maintain current revenues once a property has been stabilized, generally excluding those for acquired buildings being stabilized, newly developed space and upgrades to improve revenues or operating expenses or significantly change the use of the space, as well as those resulting from casualty damage or bringing the property into compliance with governmental requirements. We report AFFO because it is a widely reported measure of the performance of equity Real Estate Investments Trusts (REITs), and is also used by some investors to compare our performance with other REITs.  However, the National Association of Real Estate Investment Trusts (NAREIT) has not defined AFFO, and other REITs may use different methodologies for calculating AFFO, and accordingly, our AFFO may not be comparable to the AFFO of other REITs. AFFO is a non-GAAP financial measure for which we believe that net income (loss) is the most directly comparable GAAP financial measure. AFFO 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.

AFFO Payout Ratio: Represents dividends announced divided by the AFFO for that period. We report AFFO Payout Ratio because it is a widely reported measure of the performance of equity REITs, and is also used by some investors to compare our performance with other REITs.

Annualized Rent:  Represents annualized cash base rent (i.e. excludes tenant reimbursements, parking and other revenue) before abatement under leases commenced as of the reporting date and expiring after the reporting date (does not include 305,565 square feet with respect to signed leases not yet commenced at March 31, 2024).  For our triple net office properties (in Honolulu and one single tenant building in Los Angeles), annualized rent is calculated for triple net leases 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.

Average Office Occupancy: Calculated by averaging the Occupancy Rates on the last day of the current and prior quarter and, for reporting periods longer than a quarter, by averaging the Occupancy Rates for all the quarters in the respective reported period.

Consolidated Portfolio: Includes all of the properties included in our consolidated results, including our consolidated JVs. At March 31, 2024, we own 100% of our consolidated portfolio, except for sixteen office properties totaling 4.2 million square feet and two residential properties with 470 apartments, which we own through four consolidated JVs and in which we own a weighted average interest of approximately 46% based on square footage.

Consolidated Net Debt: Represents our consolidated debt, net of cash and cash equivalents and loan collateral deposited with lenders, and before adding unamortized loan premium and deducting unamortized deferred loan costs. Cash and cash equivalents and loan collateral deposited with lenders are subtracted because they could be used to reduce the debt obligations, and unamortized loan premium and deferred loan costs are not adjusted for because they do not require cash settlement. Consolidated Net Debt is a non-GAAP financial measure for which we believe that consolidated debt is the most directly comparable GAAP financial measure. We report Consolidated Net Debt because some investors use it to evaluate and compare our leverage and financial position with that of other REITs. A limitation associated with using Consolidated Net Debt is that it subtracts cash and cash equivalents and loan collateral deposited with lenders and may therefore imply that there is less debt than the most comparable GAAP financial measure indicates.

Equity Capitalization: Represents our Fully Diluted Shares multiplied by the closing price of our common stock on the New York Stock Exchange as of March 28, 2024.

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						Definitions

Fully Diluted Shares:  Calculated according to the treasury stock method, based on our diluted outstanding stock and units in our Operating Partnership.

Fund: At March 31, 2024, we owned an interest of approximately 74% in Douglas Emmett Partnership X, LP (Partnership X). During 2023, we owned an interest of approximately 34% in Partnership X, and we purchased an additional 20% interest on December 31, 2023, which increased our ownership to 54%. We also purchased an additional 20% interest on February 29, 2024, which increased our ownership to 74%. The Fund owns two office properties totaling 0.4 million square feet.

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), impairment write-downs of real estate and impairment write-downs of our investment in our unconsolidated Fund 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 calculation of fully diluted equity). 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 expenses 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.

GAAP: Refers to accounting principles generally accepted in the United States.

Joint Ventures (JVs): At March 31, 2024, we owned a weighted average interest of approximately 46% based on square footage in four consolidated JVs. The JVs owned sixteen office properties totaling 4.2 million square feet and two residential properties with 470 apartments.

Lease Transaction Costs: Represents the weighted average of tenant improvements and leasing commissions for leases signed by us during the quarter, excluding leases substantially negotiated by the seller in the case of acquired properties and leases for tenants relocated from space being taken out of service. We report Lease Transaction Costs because it is a widely reported measure of the performance of equity REITs, and is used by some investors to determine our cash needs and to compare our performance with other REITs. We use Lease Transaction Costs to manage and monitor the performance of our office and multifamily portfolios.

Leased Rate: The percentage leased as of March 31, 2024. 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 the Leased Rate. For newly developed buildings going through initial lease up, units are included in both the numerator and denominator as they are leased. We report Leased Rates 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 Absorption: Represents the change in percentage leased between the last day of the current and prior quarter, excluding a property undergoing conversion from office to residential use, as well as properties acquired or sold during the current quarter. The calculation also excludes the impact of building remeasurement. We report Net Absorption 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 with other REITs. We use Net Absorption to manage and monitor the performance of our office portfolio.

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						Definitions

Net Income (Loss) Per Common Share - Diluted: We calculate Net Income (Loss) Per Common Share - Diluted in accordance with GAAP by dividing the net income (loss) 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 Long Term Incentive Plan Unit awards that contain non-forfeitable rights to dividends as participating securities and include these securities in the computation using the two-class method.

Net Operating Income (NOI):  We calculate NOI as revenue less operating expenses attributable to the properties that we own and operate. We present two forms of NOI:

•NOI: is calculated by excluding the following from our net income (loss): general and administrative expenses, depreciation and amortization expense, other income, other expenses, income (loss) from unconsolidated Fund, interest expense, gains (losses) on sales of investments in real estate and net income (loss) attributable to noncontrolling interests.

•Cash NOI: is calculated by excluding from NOI our straight-line rent and the amortization/accretion of acquired above/below market leases.

We report 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.  NOI is a non-GAAP financial measure for which we believe that net income (loss) is the most directly comparable GAAP financial measure.  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 expenses necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations. 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. Other REITs may not calculate NOI in a similar manner and, accordingly, our NOI may not be comparable to the NOI of other REITs.

Occupancy Rate:  We calculate 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 the Occupancy Rate. For newly developed buildings going through initial lease up, units are included in both the numerator and denominator as they are occupied. 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.

Operating Partnership: Douglas Emmett Properties, LP

Our Share of Net Debt: We calculate Our Share of Net Debt by: (i) multiplying the principal balance of our consolidated loans and our unconsolidated Fund's loan by our equity interest in the relevant borrower, (ii) subtracting the product of cash and cash equivalents multiplied by our equity interest in the entity that owns the cash or cash equivalents, and (iii) subtracting the product of loan collateral deposited with lenders multiplied by our equity interest in the entity that deposited the collateral with the lender. We subtract cash and cash equivalents and loan collateral deposited with lenders because they could be used to reduce the debt obligations, and do not add unamortized loan premium or subtract unamortized deferred loan costs because they do not require cash settlement. Our Share of Net Debt is a non-GAAP financial measure for which we believe that consolidated debt is the most directly comparable GAAP financial measure. We report Our Share of Net Debt because some investors use it to evaluate and compare our leverage and financial position with that of other REITs.

Pro Forma Enterprise Value: We calculate Pro Forma Enterprise Value by adding Equity Capitalization to Our Share of Net Debt. Pro Forma Enterprise Value is a non-GAAP financial measure for which we believe that consolidated total equity and liabilities is the most directly comparable GAAP financial measure. We report Pro Forma Enterprise Value because some investors use it to evaluate and compare our financial position with that of other REITs.

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						Definitions

Recurring Capital Expenditures:  Building 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.

Rental Rate: We report Rental Rate because it is a widely reported measure of the performance of equity REITs, and is used by some investors to compare our performance with other REITs. We use Rental Rate to manage and monitor the performance of our office and multifamily portfolios. We present two forms of 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.

Rentable Square Feet:  Based on the Building Owners and Managers Association (BOMA) measurement.  At March 31, 2024, total consists of 14,672,112 leased square feet (including 305,565 square feet with respect to signed leases not commenced), 3,131,578 available square feet, 106,798 building management use square feet and 70,175 square feet of 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.

Same Property NOI:  To facilitate a comparison of NOI between reported periods, we report NOI for a subset of our properties referred to as our “same properties,” which are properties that have been owned and operated by us during both periods being compared.  We exclude from our same property subset properties that during the comparable periods were: (i) acquired, (ii) sold, held for sale, contributed or otherwise removed from our consolidated financial statements, or (iii) that underwent a major repositioning project, 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. Our Same Property NOI is not adjusted for noncontrolling interests in properties which are not wholly owned.

Our same properties for 2024 include all of our Consolidated Portfolio properties, other than: (1) a 493,000 square foot office property in Honolulu affected by development activity, (2) a residential property with 712 apartments and approximately 34,000 square feet of retail space in Los Angeles which we are removing from the residential rental market following a fire in January 2020, (3) a new residential property with 376 apartments in West Los Angeles that we placed into service in 2022, and (4) a 456,000 square foot single tenant office property in Los Angeles that we plan to reposition when the tenant's lease expires in 2024.

We report Same Property NOI because it is a widely reported measure of the performance and value of equity REITs, and it is used by some investors to: (i) analyze our operating results excluding the impact of properties not being operated on a consistent basis, and (ii) to compare our performance and value with other REITs. We use Same Property NOI to manage and monitor the performance of our office portfolio.

Short Term Leases:  Represents 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 Portfolio: At March 31, 2024, our Total Portfolio included our Consolidated Portfolio and two office properties totaling 0.4 million square feet owned by one unconsolidated Fund in which we owned approximately 74%.

"We" and "our" refers to Douglas Emmett, Inc., our Operating Partnership and its subsidiaries, as well as our consolidated JVs and our unconsolidated Fund.

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