Douglas Emmett, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance compared to the previous fiscal period. The company, a fully integrated Real Estate Investment Trust (REIT) focused on high-quality office and multifamily properties in Los Angeles County and Honolulu, experienced a decline in total revenues across its segments.

For the third quarter of 2024, rental revenues and tenant recoveries totaled $174.5 million, down from $181.1 million in Q3 2023. Year-to-date (YTD) revenues also decreased from $535.2 million in 2023 to $515.3 million in 2024. Total office revenues for Q3 2024 were $202.7 million, compared to $208.8 million in the same quarter of the previous year, while multifamily rental revenues slightly decreased from $255.4 million to $250.8 million. Operating expenses for Q3 2024 were reduced to $202.1 million from $226.7 million in Q3 2023, contributing to a net loss of $0.3 million, a significant improvement from a net loss of $21.0 million in Q3 2023.

For the nine months ended September 30, 2024, Douglas Emmett reported a net income of $15.1 million, a turnaround from a net loss of $19.9 million in the same period of 2023. Net income attributable to common stockholders for the nine months was $24.4 million, compared to a loss of $2.3 million in the prior year. The company declared dividends of $0.19 per common share for both the third quarter and the nine months, consistent with the previous year.

The company’s total assets decreased to $9.45 billion as of September 30, 2024, from $9.64 billion at the end of 2023. Total stockholders' equity also declined to $2.09 billion from $2.22 billion. The consolidated debt stood at $3.73 billion, down from $3.76 billion at the end of 2023.

Strategically, Douglas Emmett increased its ownership in Partnership X, an unconsolidated fund managing two office properties, to 74% during the year. The company also reported a significant reduction in cash used for investing activities, totaling $156.6 million in 2024 compared to $180.4 million in 2023. The firm continues to navigate challenges related to the Barrington Plaza property, which was removed from the rental market for reconstruction, expected to cost several hundred million dollars.

Overall, while Douglas Emmett, Inc. faced revenue declines, it showed improved profitability in the nine-month period and made strategic moves to enhance its portfolio.