REIT reports higher revenue but lower funds from operations, narrows 2025 guidance
Douglas Emmett Inc. (DEI.N) on Wednesday reported a net loss of $6 million for the second quarter of 2025, a shift from the $11 million net income in the same period last year. Revenues for the quarter were $252 million, an increase from $246 million a year ago.
Funds from operations (FFO) per fully diluted share decreased to $0.37, down from $0.46 in the second quarter of 2024. Same property cash net operating income (NOI) was $151 million, a slight decrease from $152 million in the prior year period. However, the company noted that same property cash NOI would have been slightly positive excluding the impact of property tax refunds in the comparison period.
The real estate investment trust leased 973,000 square feet of office space during the quarter, including more than 300,000 square feet of new leases. A key development highlighted was the plan to convert the 247,000 square foot office tower at 10900 Wilshire into a 320-unit apartment community. The project is expected to cost between $200 million and $250 million. The company’s multifamily portfolio maintained a strong leased rate of 99.3%, with same property cash NOI growth exceeding 10%.
Looking forward, the company narrowed its full-year 2025 guidance for FFO per fully diluted share to a range of $1.43 to $1.47, and net income per common share to a range of $0.07 to $0.11.