At a glance
Douglas Emmett Inc is worth $1.67B, about 111 times its fiscal 2025 earnings. Revenue grew 1.8% to $1.00B in fiscal 2025, with 1.6% kept as profit; over 5 years it has grown 2.4% a year. It pays a 7.6% dividend yield, and returned $886.9M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −18.7% over the past year with dividends reinvested and −16.7% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 45.3% in the 2020 crash (S&P 500: 33.7%) and 53.6% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The business in plain English
Douglas Emmett is a real estate investment trust (REIT), a company that owns rental property and must pay out at least 90% of its taxable income as dividends. It owns and manages office buildings and apartments in Los Angeles County neighborhoods such as Beverly Hills, Century City, Santa Monica and Westwood, and in Honolulu. As of December 31, 2025, it held 70 office properties totaling 18.0 million square feet and 15 apartment properties with 5,445 units, some still under development.
Rent pays for the business. In 2025, office rental brought in $805.5 million, or 80.2% of $1.0 billion in revenue, and apartments brought in $198.5 million, or 19.8%. Both segments also include parking and storage fees. Office tenants are mostly small, affluent firms in law, financial services, entertainment, real estate, health services, technology and other fields. The median tenant used about 2,400 square feet. No tenant made up more than 10% of revenue in 2023, 2024 or 2025.
The strategy is to own a large slice of a small number of neighborhoods where little new space can be built. It averages about a 39% share of Class A (top-tier) office space in its submarkets and runs leasing, property management and construction in-house. Some buildings are held in joint ventures with institutional investors, which also pay it property management fees.
Price history
The interactive chart needs JavaScript.
DEI -18.7% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Office rental | $805.5M | 80.2% |
| Multifamily rental | $198.5M | 19.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $256.5M, up 1.6% from a year earlier, and net income was $-2.7M.
- For fiscal 2025, revenue was $1.00B (+1.8% year over year; +2.4% a year from FY2020 to FY2025) with a 1.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +2.4% watch |
|---|---|
| Free cash flow margin | 19.4% good |
| Return on equity (FY2025) | 0.9% weak |
| Return on assets (FY2025) | 0.2% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $891.5M | $50.4M | $276.8M |
| FY2021 | $918.4M | $65.3M | $338.5M |
| FY2022 | $993.7M | $97.1M | $334.5M |
| FY2023 | $1.02B | $-42.7M | $237.8M |
| FY2024 | $986.5M | $23.5M | $241.4M |
| FY2025 | $1.00B | $16.3M | $194.5M |
Valuation snapshot
| Market value | $1.67B |
|---|---|
| P/E ratio | 111.1 |
| Dividend yield | 7.6% |
Rank among 1514 US companies
Market value at each year end
Douglas Emmett’s market value went from $5.54B at the end of 2016 to $1.67B on Oct 28, 2026, down 70%; since the end of 2025 it is down 9%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.67B | -9.0% |
| 2025 | $1.84B | -40.8% |
| 2024 | $3.11B | +28.5% |
| 2023 | $2.42B | -12.3% |
| 2022 | $2.76B | -53.1% |
| 2021 | $5.88B | +14.9% |
| 2020 | $5.12B | -33.5% |
| 2019 | $7.70B | +32.7% |
| 2018 | $5.80B | -16.7% |
| 2017 | $6.96B | +25.6% |
| 2016 | $5.54B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DEI price data to Oct 28, 2026 | -3.8% | -18.7% | +2.1% | -16.7% | -8.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -3.8% |
| 2025 | -37.5% |
| 2024 | +34.4% |
| 2023 | -2.0% |
| 2022 | -50.9% |
| 2021 | +18.8% |
| 2020 | -30.9% |
| 2019 | +31.9% |
| 2018 | -14.6% |
| 2017 | +15.0% |
| 2016 | +20.3% |
| 2015 | +13.1% |
| 2014 | +25.6% |
| 2013 | +3.0% |
| 2012 | +31.3% |
| 2011 | +12.8% |
| 2010 | +19.4% |
| 2009 | +13.4% |
| 2008 | -39.8% |
| 2007 | -12.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 74.2% over that stretch · deepest drop along the way 75.7%, back to its old high 39.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 44.7% over that stretch · deepest drop along the way 45.3%, not recovered by the end of the data |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 49.9% over that stretch · deepest drop along the way 53.6%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (13 read): 3 open-market purchases ($1.5M) and 0 sales ($0.00).
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 13, 2026 | Jordan L Kaplan Chairman and CEO, Director | buy | $998K |
| Nov 17, 2025 | Michele L Aronson EVP, GEN COUNSEL & SECRETARY | buy | $404K |
| Nov 14, 2025 | Michele L Aronson EVP, GEN COUNSEL & SECRETARY | buy | $88K |
Who owns it
Large shareholders (13G filings)
| Vanguard Portfolio Management | 9.89% | Mar 31, 2026 |
| Vanguard Capital Management | 5.19% | Mar 31, 2026 |
| First Pacific Advisors, LP | 5.1% | Feb 12, 2026 |
| FMR LLC | 4.9% | Sep 30, 2025 |
| Wellington Management Group LLP | 4.2% | Mar 31, 2025 |
ETFs with the most weight in DEI
| DESK VanEck Office and Commercial REIT ETF | 4.29% |
| BLDG Cambria Global Real Estate ETF | 1.05% |
| NIXT Research Affiliates Deletions ETF | 0.81% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.73% |
| USVM VictoryShares US Small Mid Cap Value Momentum ETF | 0.36% |
| BBRE JPMorgan BetaBuilders MSCI US REIT ETF | 0.27% |
| JPSE JPMorgan Diversified Return U.S. Small Cap Equity ETF | 0.26% |
| RWR SPDR Dow Jones REIT ETF | 0.26% |
What could go wrong
- All properties in Los Angeles and Honolulu. Every building sits in Los Angeles County or Honolulu, and the Los Angeles holdings cluster in a few submarkets. A local slump, new local rules or a regional disaster could hurt much of the portfolio.
- Small tenants clustered in few industries. The median office tenant used about 2,400 square feet as of December 31, 2025, and many tenants work in a few industries. Small firms may be more likely to miss rent in a downturn.
- Rent control and Los Angeles transfer taxes. Rent control may limit rent increases and cost pass-throughs. Los Angeles Measure ULA, a transfer tax on property sales, could lower property values and make buildings harder to sell at good prices.
- Heavy debt and refinancing risk. As of June 30, 2026, total debt was about $5.7 billion against $1.8 billion of shareholder equity. Higher rates raise borrowing costs, and maturing loans may be hard to refinance, which could lead to default.
- New leases may bring in less rent. The company may be unable to renew leases or fill empty space. New rents can come in below asking rents, or below the expiring lease (a rent roll-down).
- The dividend could be cut again. The company warns it may not have enough cash to pay distributions at expected levels. It already lowered the annual dividend from $1.12 per share in 2020 to $0.76 in 2023.
Recent events
- Quarterly results released
- Executive or board change; Shareholder vote results
- Quarterly results released
- Executive or board change
- Quarterly results released
- Executive or board change
- Quarterly results released
For income and retirement investors
Douglas Emmett pays a dividend but did not raise it in any year from 2021 to 2025. The annual payout fell from $1.12 per share in 2020 to $0.76 in 2023, then held there through 2025, a decline of about 7.5% a year. The dividend yield was 7.6% as of October 28, 2026. In 2025, dividends were 782% of earnings, partly because depreciation (a non-cash charge) holds down REIT earnings. Dividends also used about 65% of free cash flow, which is the cash left after operating and capital spending. Buybacks totaled $109 million from 2021 to 2025, all in 2023.
The share price has fallen hard in downturns. It dropped 75.7% in the 2008 financial crisis and took about 40 months from its low to recover. It fell 45.3% in the 2020 COVID crash and 53.6% in the 2022 bear market, and as of October 28, 2026 it had not regained either earlier peak. A single stock carries more risk than a diversified fund.
Questions investors ask
How does Douglas Emmett make money?
Douglas Emmett makes money by renting out office space and apartments in Los Angeles County and Honolulu. In 2025, its office segment brought in $805.5 million, or 80.2% of its roughly $1.0 billion in revenue, and its apartment segment brought in $198.5 million, or 19.8%. Both include parking and storage fees. It also earns fees for managing buildings it co-owns with institutional investors through joint ventures. Its office tenants are mostly small firms in fields such as law, financial services and entertainment.
Did Douglas Emmett cut its dividend?
Yes. Douglas Emmett paid $1.12 per share in 2020 and 2021, $1.03 in 2022 and $0.76 in 2023, and kept it at $0.76 through 2025. That is a decline of about 7.5% a year over five years. The dividend yield was 7.6% as of October 28, 2026. In 2025, dividends used about 65% of free cash flow. The annual report warns the company may not have enough cash to pay distributions at expected levels in the future.
Why is Douglas Emmett's P/E ratio so high?
Mainly because its earnings were small. Douglas Emmett earned $0.09 per share in 2025, so its price-to-earnings (P/E) ratio, the share price divided by a year's earnings per share, was 111.1 as of October 28, 2026. Depreciation, an accounting charge for the aging of buildings that uses no cash, holds down REIT profits. Free cash flow was $194.5 million in 2025, far above net income of $16.3 million. Many investors judge REITs by funds from operations (FFO), which adds depreciation back.
How much debt does Douglas Emmett have?
Douglas Emmett had about $5.72 billion of total debt as of June 30, 2026. It also held $355 million of cash and investments and $1.84 billion of shareholder equity. Total assets were $9.55 billion, mostly real estate carried at $8.99 billion. For scale, the company's stock market value was about $1.67 billion as of October 28, 2026. Its annual report lists its substantial debt as a risk, because higher interest rates raise borrowing costs and maturing loans may be hard to refinance.
How has Douglas Emmett stock performed?
It has fallen over most long periods. As of October 28, 2026, the share price was down 18.7% over one year, about 60% over five years and about 58% over ten years, though up about 7% over three years. Single years swing widely: the stock fell 50.9% in 2022, rose 34.4% in 2024 and fell 37.5% in 2025. These figures are price changes only; dividends would add to the total return.