Douglas Emmett, Inc. · NYSE:DEI
Douglas Emmett — Q3 2024 Earnings Presentation
20 slides from Douglas Emmett's earnings presentation, Nov 5, 2024
Slide 1: Douglas Emmett - September 30, 2024
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Slide 2: Douglas Emmett (DEI) Overview
Douglas Emmett (DEI) Overview Sharpshooter Focus & Best-in-Class Operating Platform Focused Strategy ✔ High barriers to entry reduce competitive pressures from new supply ✔ Proximity to premier housing markets attracts affluent tenants ✔ Small affluent tenants in diverse industries mitigate risk and
Slide 3: DEI Portfolio Snapshot
DEI Portfolio Snapshot Our Properties are Located in Premium Los Angeles and Honolulu Markets Office Portfolio Multifamily Portfolio Combined Portfolio 18M SF / 80% of Total Annual Rent 4,476 Units / 20% of Total Annual Rent Total Annual Rent Honolulu L.A. Westside 1.2 M SF 1,989 Units 2 Properties
Slide 4: Douglas Emmett by the Numbers
Douglas Emmett by the Numbers Executive Tower ▪ Founded 53 years ago in 1971 Olympic Corridor ▪ Approximately 37% average market share of Class A office space in our regions ▪ Largest office landlord in Los Angeles and Honolulu ▪ Approximately 2,700 offices leases in our total portfolio, with a medi
Slide 5: Portfolio location map
Los Angeles - Westside @ 52 office properties & 10 residential properties Los Angeles - Valley @ 16 office properties PACIFIC OCEAN Zz tl _ J Honolulu /| @ 2 office properties A 4 residential properties 105; 110 Ve Waikiki PACIFIC OCEAN O
Slide 6: Highest Barriers to Entry & Lowest New Construction of Any Gateway Market
Highest Barriers to Entry & Lowest New Construction of Any Gateway Market Historical Office Construction Total New Supply Added as % of Existing Stock Since 2009 29.8% 30% 28.7% 25% 20% 14.3% 15% 12.8% 10% 5% 3.0% 0% DEI San Francisco Midtown Boston D.C. Submarkets Manhattan New office development i
Slide 7: L.A.'s Heavy Traffic Limits Competition from Other Submarkets
L.A.’s Heavy Traffic Limits Competition from Other Submarkets Hollywood Holmby $1.7M Bel Air Hills Beverly Hills $7.4M $19.4M $7.1M Brentwood $4.7M Wilshire Blvd Pacific Westwood Century City Downtown Palisades $675K $5.2M Santa Olympic Monica Corridor $4.5M Average Daily Round Trip Commute From 90
Slide 8: Limited New Supply Drives Consistent Rent Growth with Minimal Volatility
Limited New Supply Drives Consistent Rent Growth with Minimal Volatility ✔ Almost all of our office leases contain contractual annual rent increases of 3% to 5%, which: ▪ Protects our cash flow during downturns ▪ Can accelerate cash flow growth during expansions ▪ Allows us to lower starting rents d
Slide 9: Consistent Rent Growth through Three Down Cycles and 28 Years
Consistent Rent Growth through Three Down Cycles and 28 Years 3.6% Compounded Annual Growth Over The Last 28 Years Average "Class A" Asking Rent per Year in Douglas Emmett West L.A. Submarkets 2019 Peak 19% above 2007 peak $70 2007 Peak 38% above 2000 peak 9 year $65 Growth +50% CAGR +5% $60 $55 3 y
Slide 10: West Los Angeles Has the Best Long Term Growth and Less Volatility
West Los Angeles Has the Best Long Term Growth and Less Volatility Better Rent Growth Lower Volatility Risk Cumulative Rent Growth Since 1998* Average Peak to Trough Decline Since 1998* 121% 120% 125% 100% 100% 82% 80% 75% 50% 60% 51% 25% 40% 18% 0% 20% 10% -4% -25% -18% 0% -26% -26% San Boston Midt
Slide 11: Small Affluent Tenants in Diverse Industries
Small Affluent Tenants in Diverse Industries Diverse Tenant Industry Mix Small Tenant Size Educational 3,000 Services 2.7% Other 2,550 Insurance Legal 3.0% 5.9% 2,500 96% 18.7% Median tenant size Tech 2,000 of only 2,400 SF Number of Leases 4.8% Retail Financial 5.1% 1,500 Services 15.2% Accounting
Slide 12: No Significant Large Tenant Rollover Risk
No Significant Large Tenant Rollover Risk Consistent Lease Expirations Schedule 50% At September 30, 2024 40% Comparable curve based on the average of prior three years (1) 30% 20% 10% 0% 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034+ (1) Average of the percentage of leases at September 30,
Slide 13: Lower G&A and Tenant Turnover Costs
Lower G&A and Tenant Turnover Costs ✔ Our unsurpassed tenant service is a key advantage in handling a very large number of small, affluent tenants ✔ Our in-house leasing agents and lawyers execute about 3 office leases and 9 residential leases each business day ✔ Our average tenant moves into occupa
Slide 14: Premiere Multifamily Assets
Premiere Multifamily Assets ✔We own 14 multifamily properties with 4,476 total units in high-barrier premium submarkets in West LA and Honolulu ✔Our apartment communities command premium rents and produce above average operating margins Efficient Management Premium Properties and Overhead Revenue pe
Slide 15: Non Recourse Debt, Best Pricing from Lenders and Refinancing Flexibility
Non Recourse Debt, Best Pricing from Lenders and Refinancing Flexibility Our Approach The Results ✔ We only use property level, non-recourse debt without corporate ✔ We were one of only a few REITs which was not forced to issue or rating agency covenants dilutive equity in the last recession ✔ We se
Slide 16: Our Sustainability Programs are Both Socially Responsible and Good Business
Our Sustainability Programs are Both Socially Responsible and Good Business Our long-term focus on energy savings has resulted in a very efficient portfolio. All of our buildings save energy through LED lighting, automated energy management systems and real time energy usage software. We continue to
Slide 17: Our Human Relationships are Our Most Valuable Assets
Our Human Relationships are Our Most Valuable Assets We strive to create an environment which honors our employees, tenants and vendors: Every new employee is given a copy of the Douglas Emmett Promises, a set of 15 key Our Promises commitments that we strive to embody each day. We insist that our d
Slide 18: Our Team Reflects Our Diverse Communities
Our Team Reflects Our Diverse Communities 100% Douglas Emmett Employees Local Labor Force* 75% 71% 71% 57% 54% 50% 46% 43% 38% 39% 29% 29% 25% 19% 12% 10% 7% 8% 3% 3% 0% 0% White (non Other Latino/Hispanic Asian Black or African All other races Two or more Female Male Latino/Hispanic) Races/Ethnicit
Slide 19: Highly Experienced Leadership Team
Highly Experienced Leadership Team Executive Management Officer Position Jordan L. Kaplan President & CEO Kenneth M. Panzer Chief Operating Officer Peter D. Seymour Chief Financial Officer Kevin A. Crummy Chief Investment Officer Michele L. Aronson EVP, General Counsel and Secretary Board of Directo
Slide 20: Additional Information
Additional Information: Please contact Stuart McElhinney, Vice President-Investor Relations at (310) 255-7751 or via email at smcelhinney@douglasemmett.com Updates, financial information and additional property information can be obtained at www.douglasemmett.com. This profile is not intended to be