Douglas Emmett Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Douglas Emmett Inc. has submitted its 2023 annual report (10-K) detailing its financial performance and business operations for the year ending December 31, 2023.</b>

AI Summary

Douglas Emmett Inc (DEI) filed a Annual Report (10-K) with the SEC on February 16, 2024. Douglas Emmett Inc. filed its 2023 Form 10-K on February 16, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Maryland and headquartered in Santa Monica, California. Douglas Emmett Inc. operates within the Real Estate Investment Trusts sector. The filing includes financial data and business operations for the fiscal year 2023.

Why It Matters

For investors and stakeholders tracking Douglas Emmett Inc, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Douglas Emmett Inc.'s financial health, operational performance, and strategic direction for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. As a Real Estate Investment Trust (REIT), the detailed financial disclosures in this report are essential for understanding the company's revenue streams, property portfolio performance, and overall market position within the real estate sector.

Risk Assessment

Risk Level: medium — Douglas Emmett Inc shows moderate risk based on this filing. The company operates in the real estate sector, which is subject to market fluctuations, interest rate changes, and economic downturns, as indicated by its classification as a Real Estate Investment Trust (SIC 6798).

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Douglas Emmett Inc.'s performance and potential challenges in the real estate market.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-16 — Filing Date (As of date)
• 116 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• Douglas Emmett Inc. (company) — Filer of the 10-K
• 2023 (date) — Fiscal year end
• February 16, 2024 (date) — Filing date
• Santa Monica, CA (location) — Business address
• Maryland (location) — State of incorporation
• 6798 (industry_code) — Standard Industrial Classification

FAQ

Risk Factors

• Market Conditions [medium — market]: The company's performance is subject to the general economic conditions and real estate market dynamics in its operating regions.
• Interest Rate Sensitivity [medium — financial]: As a REIT, the company's financial performance can be significantly impacted by changes in interest rates, affecting borrowing costs and property valuations.
• Tenant Concentration [low — operational]: Reliance on a limited number of tenants for a significant portion of rental income could pose a risk if key tenants experience financial difficulties or vacate.
• Real Estate Regulations [low — regulatory]: Compliance with various federal, state, and local real estate laws and regulations is essential and changes could impact operations.

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share DEI New York Stock

Filing Documents

• nysedei-20231231.htm (10-K) — 3011KB
• a2023q4ex106-2016ltipunita.htm (EX-10.6) — 74KB
• a2023q4ex211-listofsubsidi.htm (EX-21.1) — 258KB
• a2023q4ex231-auditorsconse.htm (EX-23.1) — 5KB
• a2023q4exhibit311-ceo302.htm (EX-31.1) — 11KB
• a2023q4exhibit312-cfo302.htm (EX-31.2) — 11KB
• a2023q4exhibit321-ceo906.htm (EX-32.1) — 7KB
• a2023q4exhibit322-cfo906.htm (EX-32.2) — 7KB
• a2023q4ex971-deiclawbackpo.htm (EX-97.1) — 35KB
• nysedei-20231231_g1.jpg (GRAPHIC) — 6KB
• nysedei-20231231_g2.jpg (GRAPHIC) — 140KB
• nysedei-20231231_g3.jpg (GRAPHIC) — 28KB
• nysedei-20231231_g4.jpg (GRAPHIC) — 32KB
• nysedei-20231231_g5.jpg (GRAPHIC) — 117KB
• 0001364250-24-000012.txt (&nbsp;) — 14725KB
• nysedei-20231231.xsd (EX-101.SCH) — 94KB
• nysedei-20231231_cal.xml (EX-101.CAL) — 101KB
• nysedei-20231231_def.xml (EX-101.DEF) — 439KB
• nysedei-20231231_lab.xml (EX-101.LAB) — 1032KB
• nysedei-20231231_pre.xml (EX-101.PRE) — 690KB
• nysedei-20231231_htm.xml (XML) — 2185KB

Forward Looking Statements

Forward Looking Statements 5 PART I Item 1 Business Overview 6 Item 1A

Risk Factors

Risk Factors 13 Item 1B Unresolved Staff Comments 31 Item 1C Cybersecurity 31 Item 2

Properties

Properties 33 Item 3

Legal Proceedings

Legal Proceedings 39 Item 4 Mine Safety Disclosures 39 PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 39 Item 6 [Reserved] 40 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 55 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 55 Item 9A

Controls and Procedures

Controls and Procedures 55 Item 9B Other Information 56 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 56 PART III Item 10 Directors, Executive Officers and Corporate Governance 57 Item 11

Executive Compensation

Executive Compensation 57 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 Item 13 Certain Relationships and Related Transactions, and Director Independence 57 Item 14 Principal Accounting Fees and Services 57 PART IV Item 15 Exhibits and Financial Statement Schedule 58 Item 16 Form 10-K Summary 60

Signatures

Signatures 61 1 Table of Contents Glossary Abbreviations used in this Report: ADA Americans with Disabilities Act of 1990 AOCI Accumulated Other Comprehensive Income (Loss) ASC Accounting Standards Codification ASU Accounting Standards Update BOMA Building Owners and Managers Association CEO Chief Executive Officer CFO Chief Financial Officer Code Internal Revenue Code of 1986, as amended COVID-19 Coronavirus Disease 2019 COO Chief Operating Officer DEI Douglas Emmett, Inc. EPA United States Environmental Protection Agency EPS Earnings Per Share Exchange Act Securities Exchange Act of 1934, as amended FASB Financial Accounting Standards Board FCA Financial Conduct Authority FDIC Federal Deposit Insurance Corporation FFO Funds From Operations FIRPTA Foreign Investment in Real Property Tax Act of 1980, as amended Fund Unconsolidated Institutional Real Estate Fund GAAP Generally Accepted Accounting Principles (United States) IRS Internal Revenue Service IT Information Technology JV Joint Venture LIBOR London Interbank Offered Rate LTIP Units Long-Term Incentive Plan Units MGCL Maryland General Corporation Law NAREIT National Association of Real Estate Investment Trusts NYSE New York Stock Exchange OCI Other Comprehensive Income (Loss) OP Units Operating Partnership Units Operating Partnership Douglas Emmett Properties, LP OFAC Office of Foreign Assets Control Partnership X Douglas Emmett Partnership X, LP PCAOB Public Company Accounting Oversight Board (United States) QRS Qualified REIT subsidiary(ies) REIT Real Estate Investment Trust Report Annual Report on Form 10-K SEC Securities and Exchange Commission Securities Act Securities Act of 1933, as amended S&P 500 Standard & Poor's 500 Index SOFR Secured Overnight Financing Rate TRS Taxable REIT Subsidiary(ies) US United States USD United States Dollar VIE Variable Interest Entity(ies) 2 Table of Contents Defined terms used in this Report: Annualized Rent

Forward Looking Statements

Forward Looking Statements This Report contains forward-looking statements within the meaning of the Section 27A of the Securities Act and Section 21E of the Exchange Act. You can find many (but not all) of these statements by looking for words such as "believe", "expect", "anticipate", "estimate", "approximate", "intend", "plan", "would", "could", "may", "future" or other similar expressions in this Report. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements used in this Report, or those that we make orally or in writing from time to time, are based on our beliefs and assumptions, as well as information currently available to us. Actual outcomes will be affected by known and unknown risks, trends, uncertainties and factors 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 future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution when relying on previously reported forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. Some of the risks and uncertainties that could cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include the following: adverse economic, political or real estate developments affecting Southern California or Honolulu, Hawaii; competition from other real estate investors in our markets; decreasing rental rates or increasing tenant incentive and vacancy rates; reduced demand for office space, including as a result of remote work and flexible working arrangements that allow work from remote locations other than the employer's o

Business

Item 1. Business Overview 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. Through our interest in our Operating Partnership and its subsidiaries, our consolidated JVs, and our unconsolidated Fund, we focus on owning, acquiring, developing and managing a substantial market share of top-tier office properties and premier multifamily communities in neighborhoods with significant supply constraints, high-end executive housing and key lifestyle amenities. Our properties are located in the Beverly Hills, Brentwood, Burbank, Century City, Olympic Corridor, Santa Monica, Sherman Oaks/Encino, Warner Center/Woodland Hills and Westwood submarkets of Los Angeles County, California, and in Honolulu, Hawaii. We intend to increase our market share in our existing submarkets and may enter into other submarkets with similar characteristics where we believe we can gain significant market share. The terms "us," "we" and "our" as used in this Report refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis. At December 31, 2023, we owned a Consolidated Portfolio consisting of (i) a 17.6 million square foot office portfolio, (ii) 4,576 multifamily apartment units and (iii) fee interests in two parcels of land from which we receive rent under ground leases. We also manage and own equity interests in our unconsolidated Fund which, at December 31, 2023, owned an additional 0.4 million square feet of office space. We manage our unconsolidated Fund alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. For more information, see Item 2 "Properties" of this Report. As of December 31, 2023, our portfolio consisted of the following (including ancillary retail space and excluding two parcels of land fr

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View this 10-K filing on SEC EDGAR