Tuesday, real estate investment trust Douglas Emmett, Inc. (DEI) reported a decline in fourth quarter funds from operations or FFO, with a decline in revenues. Nevertheless, the FFO came in line with the consensus estimate. The company also provided FFO guidance for fiscal 2010, which surrounds the mean analysts' estimate.
Funds From Operations for the quarter declined to $46.3 million from $55.6 million in the corresponding period last year. FFO per share declined to $0.30 from $0.36 per share in the year-ago quarter, yet came in line with the $0.30 per share projected by thirteen analysts polled by Thomson Reuters. Analysts estimates typically exclude special items.
GAAP net loss attributable to common stockholders widened to $8.9 million or $0.07 per share from $6.4 million or $0.05 per share in the same period last year.
Total revenues declined to $139.4 million from $155.6 million in the same period last year. On average, four Street analysts expected the company to report revenues of $139.6 million for the quarter.
Total office revenues declined to $122.4 million from $138 million in the year-ago quarter. Total multifamily revenues declined marginally to $17.0 million from $17.5 million a year earlier.
Same property office revenues, on a cash basis, decreased to $114.1 million from $114.5 million in the fourth quarter of 2008. Same property multifamily revenues, on a cash basis, decreased to $16.1 million for the quarter from $16.6 million in the year ago period.
Same Property Net Operating Income or NOI on a cash basis declined 1.1% for the three months ended December 31, 2009 compared to the three months ended December 31, 2008. Same Property NOI on a GAAP basis decreased 0.7% compared to the year-ago quarter.
As of December 31, 2009, the company's office portfolio was 91.7% leased and 90.6% occupied, compared to 91.8% leased and 90.7% occupied at September 30, 2009. This excludes the six properties acquired in March 2008 and owned by Douglas Emmett Fund X, the company's institutional fund.
As of December 31, 2009, Douglas Emmett's office portfolio, including the Fund X properties, was 90.3% leased and 89.0% occupied, compared to 90.4% leased and 89.2% occupied at September 30, 2009.
The company said Douglas Emmett Fund X was deconsolidated from its results at the end of February 2009. Therefore, the company's financial statements reflect the results of the Fund X properties on a consolidated basis for the period from March 2008, when the Company acquired the properties, through February 2009 and on an unconsolidated basis for the remainder of the 2009 year.
As of December 31, 2009, the company's multifamily portfolio was 99.0% leased compared to 99.4% leased at September 30, 2009.
For the year twelve-month period, FFO declined to $198.1 million or $1.27 per share from $211.7 million or $1.36 per share last year. GAAP net loss attributable to common stockholders was $27.1 million or $0.22 per share compared to $28.0 million or $0.23 per share in the previous year. Total revenue declined to $571 million from $608.1 million last year. Street Analysts expected the company to report earnings of $1.28 per share on revenues of $571.19 million for 2009.
Looking ahead, the company expects 2010 FFO to be in the range of $1.19 - $1.25 per share. Currently, analysts expects the company to earn $1.22 per share for 2010. The guidance excludes any impact from future acquisitions, dispositions, equity purchases, debt financings, recapitalizations, or similar matters.
In addition, the guidance also assumes that non-cash interest expense for 2010 relating to its pre-IPO interest rate swap contracts will approximate straight-line amortization and that one-month LIBOR will average 1.00% during the period from August 1, 2010 to December 31, 2010, the period following the expiration of $1.11 billion of interest rate swap contracts.
DEI declined $0.25 or 1.89% and closed Tuesday's regular trading session at $13.00. After hours, DEI rose $0.06 or 0.42% and traded at $13.05.
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