| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | — | 17.8x | Top tier | |
Growth | 14 | 0.8% | 7.1% | Bottom tier | |
Quality | 51 | 2.5% | 4.5% | Around median | |
Safety | 31 | 9.0x | 2.6x | Bottom tier | |
Capital Return | 36 | 7.08% | 2.12% | Bottom tier | |
Momentum | 33 | -23.9% | 2.9% | Bottom tier | |
Sentiment | 72 | 5 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Douglas Emmett, Inc. is a real estate investment trust focused on office properties and residential apartments in Southern California and Honolulu. Its operating performance depends on leasing space, raising rents, renovating and redeveloping properties, and adding assets through acquisitions and joint ventures; in Q2 fiscal 2026, the company signed office leases covering approximately 960 thousand square feet, while the apartment portfolio remained more than 99% leased.
In Q2 fiscal 2026, revenue increased from $252 million to approximately $257 million, representing annual growth of about 1.6%. Funds from operations were $0.37 per share, exceeding the analyst estimate of $0.36, and adjusted funds from operations increased from $54 million to $56 million, but same-property cash net operating income declined 1.2%, while general and administrative expenses remained stable at approximately 4.9% of revenue.
The business mix reflects a contrast between the recovery in office leasing and stability in the residential business: offices achieved positive absorption of approximately 60 thousand square feet, and the straight-line value of new leases increased 3.2% compared with the prior leases for the same spaces, while same-property residential cash net operating income increased 2% annually. For the twelve months ended in fiscal 2026, revenue was $1.0 billion and gross profit was $634 million, but the net loss was $26 million and earnings per share were negative at approximately $0.16.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13.5, within a narrow range of $13 to $14, and is accompanied by a Neutral consensus rather than a Buy consensus. The average target is approximately 20.5% below the 52-week range high of $16.99 and approximately 49.3% above its low of $9.04. This range reflects a reassessment related to the $26 million net loss during the twelve months ended in fiscal 2026 and higher interest costs, offset by improved leasing and funds from operations exceeding expectations.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
Douglas Emmett owns and operates a portfolio concentrated in offices and residential apartments in Southern California and Honolulu. Its results are generated through leasing space, rent increases, property redevelopment, and acquisitions executed directly or through joint ventures. In Q2 fiscal 2026, the apartment portfolio remained more than 99% leased, while the office portfolio signed leases covering approximately 960 thousand square feet.
Revenue was approximately $257 million, compared with approximately $252 million in Q2 fiscal 2025, representing growth of about 1.6%. Funds from operations were $0.37 per share versus an analyst estimate of $0.36, and adjusted funds from operations increased from $54 million to $56 million. In contrast, same-property cash net operating income declined 1.2%, demonstrating that exceeding expectations did not eliminate pressure on same-property operating performance.
The company signed thirty-four office leases in Q2 fiscal 2026 covering a total of just under 960 thousand square feet, split between more than 375 thousand square feet of new leases and more than 584 thousand square feet of renewals. Straight-line lease value increased 3.2% compared with the prior leases for the same spaces, and transaction costs were $5.35 per square foot annually. However, the gap between leasing and occupancy exceeded 470 basis points, so most of the financial impact is expected to appear during the twelve months following Q2 fiscal 2026.
The debt-to-equity ratio was 3.12 and the current ratio was 0.08 according to August 2026 data, two figures that highlight the balance sheet's sensitivity to financing and liquidity. In May 2026, the company refinanced a $400 million loan for four years with an effectively fixed interest rate of 6.15% through June 2029. In June 2026, it refinanced another $415 million loan with an effectively fixed interest rate of 6.18% through July 2029, and management said that higher interest expense would exceed the impact of improved operating income expectations.
Studio Plaza moved into the operating portfolio in Q2 fiscal 2026 after surpassing 50% leased, but build-outs for first-generation leases will delay occupancy and temporarily reduce reported rates. In April 2026, the company and its partners acquired Bedford Collection, five medical office buildings covering 246 thousand square feet, for $260 million. The joint venture was capitalized with $150 million of equity and $130 million of debt, and is managed by Douglas Emmett, which owns a 13.3% stake.
The company expects a diluted loss per share of between $0.20 and $0.16 in fiscal 2026. It expects fully diluted funds from operations of between $1.39 and $1.43 per share, with an office occupancy range of between 75% and 77%. The reduced occupancy outlook reflects the inclusion of Studio Plaza in full-year assumptions, while pressure on profitability reflects higher interest rates despite improved operating income expectations.
