Douglas Emmett, Inc. Announces First Quarter 2007 Results
Reports Diluted FFO Per Share of $0.28
SANTA MONICA, Calif., May 8 /PRNewswire-FirstCall/ -- Douglas Emmett,
Inc. (NYSE: DEI), a real estate investment trust (REIT) focused on owning
and acquiring top-tier office properties and multifamily communities within
targeted submarkets, today announced its first quarter financial results
for the period ended March 31, 2007.
Quarterly Results
Funds From Operations (FFO) for the first quarter of 2007 totaled $46.4
million, or $0.28 per diluted share. For period ended, March 31, 2007, the
Company reported a net loss of $3.3 million, or $0.03 per diluted share.
Company Operations
As of March 31, 2007, the Company's office portfolio was 95.2% leased
compared to 94.3% leased at December 31, 2006. During the first quarter,
the Company signed 116 new and renewal leases, comprised of approximately
438,357 square feet, resulting in overall positive net absorption of
136,127 square feet. The Company's multifamily portfolio was 99.4% leased
at March 31, 2007.
Dividends / Annual Shareholders' Meeting
On April 16, 2007, the Company paid a quarterly cash dividend of $0.175
per share to shareholders of record on March 30, 2007. The dividend
represents a distribution of $0.70 per common share on an annualized basis.
In addition, Douglas Emmett's Annual Meeting of Shareholders will be held
on Thursday, May 31, 2007 at 9:30 a.m. (PST) at The Loews Santa Monica
Beach Hotel, which is located at 1700 Ocean Avenue, Santa Monica,
California 90401. Shareholders of record on April 2, 2007 will be entitled
to vote at the meeting.
Conference Call and Web Cast Information
A conference call to discuss the Company's 2007 first quarter results
is scheduled for Wednesday, May 9, 2007 at 2:00 p.m. Eastern Time, or 11:00
a.m. Pacific Time. Interested parties can access the live call by going to
the Investor Relations section of the Company's Web site at
http://www.douglasemmett.com or by dialing into the call at 800.240.2134
(domestic) or 303.262.2142 (international). A rebroadcast of the live call
will be available via the web site for 90 days. A digital replay will be
available through Wednesday, May 16, 2007 at 800.405.2236 (domestic) or
303.590.3000 (international) and using the passcode 11087756.
Supplemental Information
Supplemental financial information for the Company's first quarter
financial results can be accessed on the Company's Web site under the
investors section at http://www.douglasemmett.com.
Upcoming Management Presentations
The Company will be participating in a panel discussion at the BMO
Capital Markets North American REIT Conference on Thursday, May 17, 2007 at
11:15 a.m. Central Time. The discussion will be web cast and accessible via
the Company's Web site at http://www.douglasemmett.com, and by selecting
the Calendar of Events in the Investor Relations section. An archive of the
web cast will be available for 6 months.
About Douglas Emmett, Inc.
Douglas Emmett, Inc. (NYSE: DEI) is a fully integrated,
self-administered and self-managed real estate investment trust (REIT), and
one of the largest owners and operators of high-quality office and
multifamily properties located in targeted submarkets in California and
Hawaii. The Company's property portfolio currently consists of 46 office
properties with approximately 11.6 million rentable square feet, nine
multifamily properties with a total of 2,868 units, and interests in three
land parcels. For more information on Douglas Emmett, please visit the
Company's Web site at http://www.douglasemmett.com.
Safe Harbor Statement
Except for the historical facts, the statements in this press release
regarding Douglas Emmett's business activities are forward-looking
statements based on the beliefs of, assumptions made by, and information
currently available to, us about known and unknown risks, trends,
uncertainties and factors that are 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 actual future results can be expected to differ
from our expectations, and those differences may be material. Accordingly,
investors should use caution in relying on past forward-looking statements
to anticipate future results or trends. For a discussion of some of the
risks and uncertainties which could cause actual results to differ from
those contained in the forward-looking statements, see "Risk Factors" in
our Annual Report on Form 10-K filed with the Securities and Exchange
Commission.
-- tables follow --
Douglas Emmett, Inc.
Consolidated Balance Sheets
(in thousands, except for share data)
March 31, December 31,
2007 2006
(unaudited)
Assets
Investments in real estate:
Land $813,599 $813,599
Buildings and improvements 4,865,897 4,863,955
Tenant improvements and leasing costs 419,350 411,063
6,098,846 6,088,617
Less: accumulated depreciation (83,638) (32,521)
Net investment in real estate 6,015,208 6,056,096
Cash and cash equivalents 3,850 4,536
Tenant receivables 3,915 4,160
Deferred rent receivables 8,092 3,587
Interest rate contracts 71,274 76,915
Acquired above-market lease intangibles, net 31,413 34,137
Other assets 20,089 20,687
Total Assets $6,153,841 $6,200,118
Liabilities
Secured notes payable $2,750,000 $2,760,000
Unamortized non-cash debt premium 28,607 29,702
Interest rate contracts 16,200 6,278
Accrued interest payable 12,614 12,701
Acquired below-market lease intangibles, net 251,062 263,649
Accounts payable and accrued expenses 41,894 39,035
Security deposits 29,176 28,670
Dividends payable 20,126 13,801
Total Liabilities 3,149,679 3,153,836
Minority interest (1) 927,685 934,509
Stockholders' equity
Common stock 1,150 1,150
Additional paid-in capital 2,144,591 2,144,600
Accumulated other comprehensive (loss)
income (11,473) 415
Accumulated deficit (57,791) (34,392)
Total stockholders' equity 2,076,477 2,111,773
Total liabilities and stockholders'
equity $6,153,841 $6,200,118
(1) Represents the portion of results attributable to ownership interests
in our operating partnership through OP units.
Douglas Emmett, Inc.
Consolidated Statements of Income
(unaudited and in thousands, except per share data)
Three Months Ended
March 31, 2007
Revenues
Office rental:
Rental revenues $91,612
Tenant recoveries 7,858
Parking and other income 11,100
Total office revenues 110,570
Multifamily rental:
Rental revenues 16,514
Parking and other income 491
Total multifamily revenues 17,005
Total Revenues 127,575
Operating Expenses
Office rental 32,966
Multifamily rental 4,923
General and administrative expenses 5,042
Depreciation and amortization 51,121
Total operating expenses 94,052
Operating income 33,523
Interest and other income 82
Interest expense (38,302)
Loss before minority interests (4,697)
Minority interests (1) 1,424
Net loss $(3,273)
Net loss per common share - basic and diluted $(0.03)
Weighted average shares of common stock
outstanding - basic and diluted 115,006
(1) Represents the portion of results attributable to ownership interests
in our operating partnership through OP units.
FFO Reconciliation
Funds From Operations (FFO)(1):
Net loss $(3,273)
Depreciation and amortization of real estate assets 51,118
Minority interest (1,424)
FFO $46,421
Weighted average common shares and units outstanding
(in thousands) diluted for the quarter ended
March 31, 2007 166,391
FFO per share - diluted $0.28
(1) We calculate funds from operations before minority interest (FFO) in
accordance with the standards established by the National Association
of Real Estate Investment Trusts (NAREIT). FFO represents net income
(loss), computed in accordance with accounting principles generally
accepted in the United States of America (GAAP), excluding gains (or
losses) from sales of depreciable operating property, real estate
depreciation and amortization (excluding amortization of deferred
financing costs) and after adjustments for unconsolidated partnerships
and joint ventures. Management uses FFO as a supplemental performance
measure because, in excluding real estate depreciation and
amortization and gains and losses from property dispositions, it
provides a performance measure that, when compared year over year,
captures trends in occupancy rates, rental rates and operating costs.
We also believe that, as a widely recognized measure of the
performance of REITs, FFO will be used by investors as a basis to
compare our operating performance with that of other REITs. However,
because FFO excludes depreciation and amortization and captures
neither the changes in the value of our properties that results from
use or market conditions nor the level of capital expenditures 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, the utility of FFO as a
measure of our performance is limited. Other equity REITs may not
calculate FFO in accordance with the NAREIT definition and,
accordingly, our FFO may not be comparable to such other REITs' FFO.
Accordingly, FFO should be considered only as a supplement to net
income as a measure of our performance. FFO should not be used as a
measure of our liquidity, nor is it indicative of funds available to
fund our cash needs, including our ability to pay dividends. FFO
should not be used as a supplement to or substitute for cash flow from
operating activities computed in accordance with GAAP. FFO per
share - diluted is calculated by dividing FFO by the average number of
fully diluted shares outstanding during the quarter ended, March 31,
2007.
Mary Jensen, Vice President - Investor Relations
310.255.7751, or mjensen@douglasemmett.com
SOURCE Douglas Emmett, Inc.
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