One-glance verdict
Overvalued
$-8.92 our estimate vs market $9.82
Wall Street consensus: $13.10 (-246.9% lower than our fair-value estimate)
210% below our estimate, beyond the bull case
Fundamentals snapshot
Douglas Emmett, Inc.
DEI · NYQ · Real Estate · REIT - Office
Current price
$9.82
52-week range
$9.04 - $15.83
Market cap
$1.97B
Balance sheet
Distressed
0.71x Concerning
Net debt $5.35B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 0.4% last year.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 5.8% over 3 years.
- Risk Operating margin compressed from 24.3% to 19.6% over 3 years.
What this company does
Douglas Emmett, Inc.
Douglas Emmett is a real estate investment trust (a company that owns buildings and is required to pay out most of its profits to investors as dividends). It makes money by collecting rent from high-end office and apartment buildings it owns in exclusive coastal areas of Los Angeles and Honolulu. The company's strategy is to own properties in locations where it's very difficult to build new ones, which helps protect its properties from competition and keep them filled with tenants.
How the company got here
Douglas Emmett started in 1971 when its founders began buying and managing real estate in Los Angeles. [2, 3] Initially, they focused on apartment buildings, but over time, they expanded into owning high-end office properties as well. [2] The company grew by acquiring a large portfolio of buildings and in 2006, it became a publicly traded company in what was, at the time, the largest-ever initial public offering (IPO, the first time a company sells its stock to the public) for a real estate investment trust. [2]
What it actually does
Douglas Emmett is a special type of company called a Real Estate Investment Trust (REIT), which is a company that owns and, in most cases, operates income-producing real estate. [3, 6] Think of it as a landlord for big office buildings and apartment complexes in very specific, desirable coastal neighborhoods of Los Angeles and in Honolulu. [3, 4] They own roughly 18 million square feet of office space and over 5,000 apartments, renting them out to businesses and individuals. [2, 4]
Office
This is the company's largest business, making up the majority of its income. [8] It involves renting out space in its high-quality office buildings to a wide range of businesses, from law firms to entertainment companies. [13] Besides the monthly rent, Douglas Emmett also earns money from tenants for things like parking, storage, and a share of the building's operating costs. [6, 13] The customers are typically small, successful businesses in prime locations like Beverly Hills and Santa Monica. [2, 4]
Multifamily
This part of the business is all about renting apartments to people in the same desirable areas where their office buildings are located. [6, 13] This segment provides a steady stream of income and has been a source of stability for the company. [7, 8] Just like with its office tenants, the company also makes money from residents for services such as parking and storage. [13] This business is a smaller, but important, piece of the company's overall operations. [8]
What management is betting on now
Management's main strategy is to own a large concentration of the best properties in locations where it's very difficult to build new ones, which they believe gives them more control over pricing. [2, 4] While the overall office market has faced challenges, the company is seeing continued demand for its high-end spaces. [8] To diversify, they have recently started investing in medical office buildings, which cater to doctors and healthcare providers. [8, 11] They are also focused on the steady performance of their apartment buildings to help balance out the ups and downs of the office market. [8]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$63.24M
FY2024 Q4
$35.01M
FY2025 Q1
$90.33M
FY2025 Q2
$30.16M
FY2025 Q3
$61.93M
FY2025 Q4
$12.04M
FY2026 Q1
$65.23M
FY2026 Q2
$39.87M
Revenue
$256.55M
Net income
$-2.68M
Diluted EPS
-0.02
Operating cash flow
$96.15M
Free cash flow
$39.87M
Fetching…
Sources
Revenue
$250.96M
Net income
$-2.50M
Diluted EPS
-0.02
Operating cash flow
$116.94M
Free cash flow
$65.23M
Fetching…
Sources
Revenue
$249.43M
Net income
$-6.84M
Diluted EPS
-0.04
Operating cash flow
$63.16M
Free cash flow
$12.04M
Fetching…
Sources
Revenue
$250.58M
Net income
$-10.85M
Diluted EPS
-0.07
Operating cash flow
$109.77M
Free cash flow
$61.93M
Fetching…
Sources
Revenue
$252.43M
Net income
$-5.83M
Diluted EPS
-0.04
Operating cash flow
$81.29M
Free cash flow
$30.16M
Fetching…
Sources
Revenue
$251.53M
Net income
$39.80M
Diluted EPS
0.24
Operating cash flow
$132.64M
Free cash flow
$90.33M
Fetching…
Sources
Revenue
$244.98M
Net income
$-888.00K
Diluted EPS
-0.01
Operating cash flow
$74.10M
Free cash flow
$35.01M
Fetching…
Sources
Revenue
$250.75M
Net income
$4.62M
Diluted EPS
0.03
Operating cash flow
$103.70M
Free cash flow
$63.24M
Fetching…
Sources
Is it cheap or expensive?
Fair value $-8.92 vs current price $9.82
Wall Street consensus is the average analyst price target: $13.10 (-246.9% lower than our fair-value estimate).
Our most-likely fair value is $-8.92 a share — about 190.8% below today's price of $9.82, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $5.4B. Interest coverage 0.7x.
Net debt
$5.35B
Interest coverage
0.71x
Douglas Emmett, Inc.'s profit covers its interest bill about 0.7 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
DEI
BASELINE
Douglas Emmett, Inc.
Total debt $5.73B Interest coverage 0.71x This is the baseline the peer rows are being compared against.
Total debt $4.66B Interest coverage 2.46x +245% vs DEI Carries about 3.4x more debt cushion than DEI.
Total debt $3.74B Interest coverage -0.26x -100% vs DEI This peer has almost no interest-payment cushion compared with DEI.
Total debt $3.52B Interest coverage 1.37x +92% vs DEI Carries about 1.9x more debt cushion than DEI.
Total debt $3.78B Interest coverage 1.41x +98% vs DEI Carries about 2.0x more debt cushion than DEI.
Total debt $2.25B Interest coverage 0.62x -13% vs DEI Has roughly the same debt cushion as DEI.
What you should know
The case for and against DEI
3 Rewards
3 Risks
Rewards
-
Revenue grew 0.4% last year.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 7.9% with 21-year payout history.
Risks
-
Net debt grew 5.8% over 3 years.
-
Operating margin compressed from 24.3% to 19.6% over 3 years.
-
Return on equity was -1.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-83.80x
P/B
0.89x
P/S
1.96x
EV/EBITDA
14.86x
PEG ratio
11.67x
Profitability
How much profit each dollar creates
Gross margin
63.2%
Operating margin
19.6%
Net margin
-2.3%
ROE
-1.9%
ROA
1.3%
Health
Liquidity and balance-sheet strength
Debt / equity
1.63x
Current ratio
0.55x
Quick ratio
0.52x
Total debt
$5.73B
Total cash
$380.98M
Growth
How the business has been compounding
Revenue TTM
$1.01B
Revenue 5Y CAGR
2.3%
EPS TTM
-0.15
EPS 5Y CAGR
-45.3%
Cash flow
How much cash the business throws off
Operating CF TTM
$386.01M
Free CF TTM
$194.46M
FCF margin
19.3%
Dividend
Shareholder payout
Yield
7.9%
Payout ratio
844.4%
Last ex-div date
2026-09-30