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Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties located in premier coastal submarkets in Los Angeles and Honolulu.
18.97% operating margin is respectable but not wide. ROIC at 2.00%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue growth slowed to 1.8%, essentially flat. Margins also contracted 2.0pp. This is a business that needs a catalyst.
Free cash flow declined 19% versus the prior year, cash generation momentum has weakened. Net debt of $5.22B represents 26.8x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$1.00B
▲ +1.8% YoY
Net Income (TTM)
-$26M
▼ -30.8% YoY
Op. Margin
18.61%
▼ -2.0pp YoY
ROIC
1.97%
▼ -0.1pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$169M
▼ -19.4% YoY
Op. Cash Flow (TTM)
$371M
▼ -5.3% YoY
Net Debt
$5.22B
Cash & Equiv.
$357M
5Y CAGR: +2.4%
5Y CAGR: -6.8%
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