A real estate investment trust that owns office and apartment buildings concentrated in the supply-constrained coastal neighborhoods of Los Angeles and Honolulu, renting to small, affluent businesses and residents. Founded in 1971 by Dan Emmett and Jon Douglas, the company takes its name from those two last names — and though it sounds like one person, no "Douglas Emmett" ever existed; the public even mistakenly calls co-founder Dan "Doug." Today it ranks among the largest office landlords in its home markets.
Office occupancy fell to 75.6% as Douglas Emmett acquired a $260M Beverly Hills medical portfolio.
Office occupancy dropped to 75.6%, the lowest level in the data shown. rose 1.6% to $256.5M and edged up 2.4% to $76.3M, as a $260M medical office acquisition and higher parking income offset the drag from vacant desks. The company is trading office square footage for medical and multifamily assets, but the core office portfolio is still shrinking.
Key takeaways
In-service office occupancy fell to 75.6% as of June 30, 2026, down from 78.0% at year-end 2025, driven by the inclusion of a redeveloped Burbank property still in lease-up and the newly acquired Beverly Hills portfolio.
rose 2.4% to $76.3M, as higher parking and multifamily income outweighed lower office occupancy and a $2.9M increase in .
The company acquired The Bedford Collection, a 246,000-square-foot Beverly Hills medical office portfolio, for $260M in April 2026 through a joint venture in which it holds a 13.3% equity stake.
Section summaries
Management's Discussion and Analysis
Q2 2026 FFO rose 2.4% to $76.3M on higher parking/multifamily income, offset by lower office occupancy and higher interest costs.
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Total same-property fell 0.6% in Q2 2026, as a 0.9% decline in office NOI (lower occupancy) was partly offset by a 0.6% increase in multifamily NOI (higher occupancy and rates).
rose 4.5% to $68.2M, reflecting higher borrowing rates from recent refinancings and debt tied to the Bedford Collection acquisition.
Same-property declined 0.6%, with office NOI down 0.9% on lower occupancy and multifamily NOI up 0.6% on higher occupancy and rates.
Liquidity remained at $355.0M in cash, while for the first half of 2026 reached $213.1M.
What changed
The Q1 2026 watch item for office occupancy was met with a further decline: occupancy fell to 75.6% from 77.5% in Q1, and the same-property office decline narrowed to 0.9% from 2.1%.
The long-standing March 3, 2025 loan maturity flagged in prior quarters was not disclosed as resolved or extended in this filing.
continued to rise, up 4.5% to $68.2M, though the pace of increase slowed from the 7.4% rise in Q1 2026 as the unhedged floating-rate exposure dropped to 7% of borrowings.
The company deployed $260M of capital into the Bedford Collection medical office acquisition, a shift from the office-to-multifamily conversion strategy highlighted in prior periods.
What to watch
Q3 2026 office occupancy and same-property office after the 75.6% Q2 level to see if the Burbank lease-up and Beverly Hills acquisition begin to stabilize the metric.
Status and terms of any resolution on the March 3, 2025 loan maturity that remains undisclosed.
Q3 2026 trajectory now that unhedged floating-rate exposure is down to 7%, with only $3.9M of annual interest sensitivity per 100 rise.
Progress on the 10900 Wilshire office-to-apartment conversion and any return of Barrington Plaza units to multifamily .
In-service office portfolio occupancy dropped to 75.6% as of June 30, 2026, from 78.0% at year-end 2025, impacted by the inclusion of a redeveloped Burbank property in lease-up and the Beverly Hills acquisition.
rose $2.9M (4.5%) in Q2 2026 due to higher borrowing rates from recent refinancings and debt on the newly acquired Bedford Collection medical office portfolio.
The company acquired The Bedford Collection, a 246,000 sq ft Beverly Hills medical office portfolio, for $260M in April 2026 through a JV in which it holds a 13.3% equity stake.
Liquidity remains strong with $355M in cash and $213.1M in for H1 2026; the company expects to meet short-term needs with cash on hand and operations, and refinance upcoming debt maturities.
Quantitative and Qualitative Disclosures About Market Risk
79% of borrowings are fixed or swap-fixed; a 100 bps rate rise would increase unhedged floating-rate interest expense by $3.9M annually.
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As of June 30, 2026, 79% of consolidated borrowings were fixed or swap-fixed, 14% were capped, and 7% were unhedged floating-rate.
on capped-rate borrowings could increase by a maximum of $29.6 million per year if rates rise above the cap levels.
A 100-basis-point increase in benchmark rates would raise annual on unhedged floating-rate debt by $3.9 million.
Interest rate swaps generally expire two years before the related loan matures, after which the debt becomes floating rate and subject to higher costs if rates exceed the swap-fixed rates.
The company manages on swaps and caps by contracting with a variety of investment-grade financial institutions.
From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. Excluding ordinary routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe woul…
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From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. Excluding ordinary routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations. See "Legal Proceedings" in Note 15 to our consolidated financial statements in Part I, Item 1 of this Report.