Douglas Emmett (DEI) Stock: Dividend vs FFO, Occupancy, Debt

The dividend as filed: $0.19 a quarter, $0.76 a year, three years running

The earnings packages report “dividends paid per share” of $0.19 in each of the quarters from Q4 2024 to Q2 2026, and $0.76 for each of 2023, 2024 and 2025. The Q2 2026 package says: “On July 15, 2026, we paid a quarterly cash dividend of $0.19 per common share, or $0.76 per common share on an annualized basis.” The payout ratio it prints is based on the dividend payable to holders of record on June 30, 2026. We found no SEC filing that declares the third-quarter dividend; DEI announces dividends by press release, and the 10-Q does not repeat them.

Because DEI reports FFO (Nareit funds from operations, including its share of consolidated joint ventures) and AFFO (FFO less straight-line rent, plus non-cash items, minus recurring capital expenditures, tenant improvements and leasing costs), the useful yardsticks are those two, not net income. Quarter by quarter:

For the half, FFO was $152.3 million against $155.5 million (down 2.1%, our arithmetic) and AFFO was $105.0 million against $116.8 million (down 10.1%). The gap between them is spending to keep and fill space: recurring capex, tenant improvements and capitalized leasing costs of $66.4 million against $56.3 million (up 17.9%). Net income attributable to common stockholders was a loss of $5.2 million against a profit of $34.0 million in 2025's first half, but the earlier figure includes a $47.2 million gain from consolidating a joint venture, which FFO strips out.

The price the filings print: $18.56, then $9.42, then $11.80

Each earnings package prints the New York Stock Exchange closing price on the last day of the quarter. These are not today's prices; they are the six dates the company itself reported, and the yield on the unchanged $0.76 is our arithmetic.

From $18.56 to $11.80 is a fall of 36.4% (our arithmetic). Net debt in dollars grew 4.4% over those dates; the leverage ratio moved mainly because the equity value did. At June 30, 2026 equity capitalization (206,983 thousand fully diluted shares including operating partnership units, at $11.80) was $2.44 billion against $4.42 billion of net debt at DEI's share, 1.8 times (our arithmetic). A high yield here describes a price that fell, not a dividend that rose. We do not quote a current price; the filings do not contain one.

What changed in the second quarter of 2026

• Earnings were flat at the FFO line. FFO per share $0.37 in both Q2 2026 and Q2 2025. Revenues were $256.5 million against $252.4 million. Interest expense rose to $68.3 million from $65.3 million.
• Same-property cash NOI fell 1.2% to $151.8 million from $153.6 million: office cash NOI down 2.1% ($118.6 million from $121.1 million), multifamily up 2.0% ($33.2 million from $32.5 million).
• An acquisition. In April a new joint venture acquired The Bedford Collection, five medical office buildings and 246,000 square feet in the Beverly Hills Golden Triangle, for $260 million. DEI holds 13.3% of the $150 million of equity, and the venture borrowed $130 million at SOFR plus 1.70%, fixed at 5.26% through April 2030.
• A refinancing. Two office loans totalling $815 million were refinanced into four-year non-recourse debt, “effectively fixed for three years at just over 6%.”
• A change of denominator. The In-Service portfolio now includes the redeveloped Studio Plaza office building in Burbank, which is in lease-up, and the Beverly Hills office properties. That lowered reported occupancy and is the stated reason the 2026 occupancy guide fell to 75% to 77%.
• A board change. On April 10, 2026 the company announced Andy Cohen, Global Co-Chair of the architecture firm Gensler, as a director; the 8-K discloses that DEI paid Gensler about $2.0 million in 2025 and that the board judged him independent. Director Leslie Bider is retiring at the May 28, 2026 meeting.

Office occupancy: five year-ends and one half-year

The occupancy table is from the 10-Q. Multifamily excludes The Landmark Residences, the 712-unit Brentwood property taken off the rental market for fire and life-safety work, which is why the earnings package can say 99.4% leased for the 4,410 in-service units while the 10-Q table shows 96.9% occupied. The two measures differ: leased includes signed leases not yet started. On the office side the June 30 number fell 2.4 points in six months partly because of the new buildings in the denominator; on the 69 same-property office buildings ending occupancy was 77.1% against 78.0% a year earlier.

Leasing: volume is there, cash rents are lower, and each deal costs money

In Q2 2026 DEI signed 234 leases covering 959,221 square feet, 93 new leases (375,207 square feet) and 141 renewals (584,014 square feet), with a weighted average term of 69 months. The company reports positive absorption of about 60,000 square feet. The rent change is where the headline and the table part ways:

The company's summary says new leases were “3.2% more valuable than the expiring leases they replaced”; that is the straight-line line, which averages free rent and escalations over the term. The cash line is the one that reaches AFFO first. The same page of the package excludes some leases from the comparison (terms of twelve months or less, relocations at the landlord's request, retail).

The rest of 2026 and 2027 together are 21.2% of annualized rent, and 2026 to 2028 are 37.5% (our arithmetic). The next twelve months' expiring space is 1,798,116 square feet, 9.9% of the portfolio, at $46.11 a foot. Available space is 3,586,984 square feet (19.7%). Our office REIT comparison used the December 31, 2025 10-K for DEI (31.1% of rent in 2026 and 2027); this June 30 table replaces it.

Debt: $5.77 billion, mostly fixed, $747 million due within twelve months

Every maturity below includes extension options the company holds, as the 10-Q footnote says; some extensions require meeting minimum financial thresholds.

The 2027 bucket is two loans. A $366.0 million wholly-owned term loan at SOFR plus 1.25% shows 9/19/2026, and a $380.0 million joint-venture term loan at SOFR plus 1.45% (DEI's share $338.2 million) shows 5/15/2027; together $746.0 million (our arithmetic). The 10-Q says: “With respect to our short-term debt maturities, we expect to refinance them prior to maturity.” The filing is dated August 7; no 8-K or other filing after it that we found reports the outcome for the September 19 loan, so the Q3 10-Q is where to look.

On interest rates, the 10-Q splits principal this way at June 30, 2026: $3.07 billion swap-fixed, $1.49 billion fixed, $822.0 million capped and $384.4 million floating. Capped debt was $1.20 billion at December 31, 2025. The statistics include $472.0 million of caps that expired July 1, 2026, and several swaps ended in 2026 (the interest rate swaps on the $300.0 million term loan expired June 1, 2026). Weighted average rate on the fixed-interest loans is 4.94% on $4.56 billion, with 2.8 years of fixed period remaining and 4.0 years of remaining life including extensions. The $815 million refinanced in Q2 priced at 6.15% and 6.18% swapped, higher than that average. Cash was $355.0 million and about 32% of the office portfolio was unencumbered as of the date of the 10-Q.

Guidance: the top of the range came down

The company's reconciliation turns the August range into FFO of $287.7 million to $296.0 million on 207.0 million fully diluted shares. The midpoint of the per-share range is $1.41, 2.8% below 2025's $1.45 (our arithmetic), and $0.76 is 53.9% of it (our arithmetic). Guidance excludes acquisitions, dispositions, stock sales or repurchases, financings and impairments.

Where the rent comes from

Office annualized rent is $654.9 million and multifamily is $182.7 million: office is 78.2% of the total (our arithmetic). The multifamily book has 4,410 in-service units at $3,482 average monthly rent: Santa Monica 940 units (99.0% leased, $4,704), West Los Angeles 964 (98.4%, $4,942) and Honolulu 2,506 (99.9%, $2,473). The 2,817 office leases have a median size of 2,400 square feet; 52.9% of leases are 2,500 square feet or less, and only one lease is above 100,000 square feet.

By tenant industry, legal is 19.9% of office rent, financial services 16.0%, real estate 13.7%, health services 11.6%, entertainment 9.3%, accounting and consulting 9.0%, retail 5.9% and technology 4.4%. For an office REIT that is a small-tenant, professional-services book, not a few large leases.

Development and the balance of what is on the books

The Landmark Residences (formerly Barrington Plaza) in Brentwood is a 712-unit phased redevelopment the package puts at about $400 million over several years, financed by a construction loan of up to $375 million ($96.2 million drawn, 84% swapped to 5.80%). The 10-Q notes a trial-court ruling in Santa Monica that the Ellis Act was not the proper route for removing tenants, which DEI is appealing, and says it does not expect a meaningful effect on timing or cost. At 10900 Wilshire in Westwood the company plans a mixed-use project of $200 million to $250 million that could add up to 323 apartments if every floor converted. The package also says recent zoning changes mean entitled residential sites in the portfolio can accommodate 8,000 to 10,000 new units. None of this pays the dividend yet; it adds spending and borrowing first.

The common share count barely moved. Common shares outstanding were 167,485,267 at June 30, 2026 against 167,462,215 at year-end, a rise of 23 thousand shares from exchanges of operating partnership units; fully diluted shares including operating partnership units were 206,983 thousand. A new omnibus incentive plan was approved at the May 28 meeting, with 15.0 million shares available for future awards across the plans.

How this compares with other office REITs and with non-traded vehicles

In our ten-company office REIT table, built from the June 30, 2026 10-Qs, Douglas Emmett was one of four that held the dividend, three companies cut against the same quarter of 2025, and its 75.6% office occupancy was the lowest, below Kilroy's 77.0%. Since then the single-company pages show how different the same word “office” is: BXP's page covers a dividend that was reset by 28.6% on taxable-income grounds with 88.4% occupancy, and Vornado's page a once-a-year dividend. DEI's difference is that it never cut in the period we read while occupancy fell every year, and that over a quarter of the debt is due in 2029.

Against a non-traded vehicle, the contrast is price. A listed REIT's market value moved 36.4% across six quarter-ends while the dividend did not; a non-traded REIT or interval fund does not show that move day to day. Our comparison of non-traded and publicly traded REITs and the listing discount page cover what that difference means when you want out.

What the next report will show, and when

DEI announced on October 5, 2026 (a company press release distributed by Business Wire, not an SEC filing) that it will release third-quarter results after the market close on Tuesday, November 3, 2026, with a call on November 4 at 11:00 a.m. Pacific. In the last three reporting cycles the 10-Q followed the earnings 8-K by three days (August 4 to 7, 2026; May 5 to 8, 2026; November 4 to 7, 2025), which would put it around November 6 (our arithmetic; DEI does not announce it). As of October 19, 2026 neither the Q3 8-K nor the 10-Q has been filed. The last periodic or current report is the 10-Q of August 7, 2026; an S-8 followed on August 10.

What a holder or reader can do with this

This page is analysis of public documents, not investment, legal or tax advice. Things the filings let you check yourself:

• Say which yardstick. 51% of FFO, 70.7% of AFFO and “more than net income” describe the same $0.19. Dividend coverage for a REIT with negative GAAP earnings depends on which measure you choose and on how much leasing cost the AFFO line has absorbed.
• Watch the cash-rent spread, not the straight-line one. The Q2 cash rent on new and renewed leases was 9.5% below the leases they replaced; if that stays, AFFO has less room even when occupancy is flat.
• Put the refinancing at today's price. The two office loans refinanced in Q2 cost about 6.15% to 6.18% fixed, against a 4.94% average on the existing fixed book. Each future refinancing is a repricing.
• Read the denominator. The 2.4-point fall in occupancy includes new buildings and a lease-up property; same-property occupancy fell 0.9 points in a year (77.1% against 78.0%).
• Compare like with like. Use the office REIT table for the same dates, and remember that DEI's apartments (22% of rent) are the part of this portfolio that is full.

FAQ

All figures are from Douglas Emmett, Inc. (SEC CIK 1364250) filings read on EDGAR on October 19, 2026: Form 10-Q for the quarter ended June 30, 2026 (accession 0001364250-26-000041); Form 10-K for 2025 (0001364250-26-000011); the earnings packages (Exhibit 99.1) attached to the Forms 8-K for Q4 2024 (0001364250-25-000006), Q1 2025 (0001364250-25-000025), Q2 2025 (0001364250-25-000033), Q3 2025 (0001364250-25-000041), Q4 2025 (0001364250-26-000005), Q1 2026 (0001364250-26-000026) and Q2 2026 (0001364250-26-000038); and the Form 8-K of April 10, 2026 (0001364250-26-000015). The November 3, 2026 earnings date comes from a Business Wire press release of October 5, 2026, not an SEC filing. Share prices are the quarter-end closing prices printed in the earnings packages, not current quotes. Dividend-to-FFO percentages, yields on the $0.76 dividend, price and debt changes, the share of debt and rent by bucket, the 2026 guidance midpoint, half-year changes, the 10-Q timing and the combined expiration percentages are our arithmetic from those rows; FFO, AFFO, net debt, enterprise value and the AFFO payout ratio are the company's own non-GAAP measures and definitions. This is analysis of public documents, not investment, legal or tax advice.