Q3 2024 Douglas Emmett Inc Earnings Call

In This Article:

Participants

Stuart McElhinney; Vice President of Investor Relations; Douglas Emmett Inc

Jordan Kaplan; President, Chief Executive Officer, Director; Douglas Emmett Inc

Kevin Crummy; Chief Investment Officer; Douglas Emmett Inc

Peter Seymour; Chief Financial Officer; Douglas Emmett Inc

Blaine Heck; Analyst; Wells Fargo Securities, LLC

Alexander Goldfarb; Analyst; Piper Sandler Companies

Michael Griffin; Analyst; Citi

Jeffrey Spector; Analyst; Bank of America

Steve Sakwa; Analyst; Evercore ISI

Richard Anderson; Analyst; Wedbush Securities Inc.

Nicholas Yulico; Analyst; Scotiabank GBM

John Kim; Analyst; BMO Capital Markets

Dave Rodgers; Analyst; Robert W. Baird

Peter Abramowitz; Analyst; Jefferies

Dylan Burzinski; Analyst; Green Street

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Douglas Emmett's quarterly earnings call. Today's call is being recorded. (Operator Instructions)
I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.

Stuart McElhinney

Thank you. Joining us today on the call are Jordan Kaplan, our President and CEO; Kevin Crummy, our CIO; and Peter Seymour, our CFO. This call is being webcast live from our website and will be available for replay during the next 90 days. You can also find our earnings package at the Investor Relations section of our website. You can find reconciliations of non-GAAP financial measures discussed during today's call in the earnings package.
During the course of this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties, and factors that are 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 prove to be incorrect. Therefore, our actual future results can be expected to differ from our expectations, and those differences may be material.
For a more detailed description of some potential risks, please refer to our SEC filings which can be found in the Investor Relations section of our website. (Operator Instructions)
I will now turn the call over to Jordan.

Jordan Kaplan

Good morning, and thank you for joining us. In the third quarter, we leased over 1 million square feet of office space, including over 350,000 square feet of new leases. Tenant demand from our diverse industries was strong in each of our three regions.
Moreover, we had our best quarter for new leasing to tenants over 10,000 square feet since late 2022, when recessionary fears surfaced. Overall, we achieved positive absorption of approximately 90,000 square feet and improved our portfolio leased rate by 50 basis points to 82%.
Turning to our financial results. We achieved FFO of $0.43 per share. Based on our year-to-date results and our improved expectations for the fourth quarter, we're raising our full-year guidance for FFO by $0.04. Looking ahead, we are primarily focused on leasing up our office portfolio. We are seeing encouraging signs of increased tenant confidence overall as well as good interest at Studio Plaza as it converts to a multi-tenant building.
Leasing can be choppy quarter to quarter. And of course, there will be a drop in occupancy next quarter when Studio Plaza vacates. But I am encouraged by our lower-than-average lease expirations over the next five years. You can see the difference in the lease expiration chart in our earnings package. We are also focused on our repositioning projects, including Studio Plaza and Barrington Plaza, and hope to acquire a few high-quality assets at attractive prices during this part of the cycle.
Now I'll turn the call over to Kevin.

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