Douglas Emmett Inc. Common Stock (DEI)

FairStock Score: 26/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the asset and the price. Douglas Emmett owns high-quality office and multifamily properties in supply-constrained coastal Los Angeles and Honolulu. That is a real moat candidate: desirable locations are hard to replicate. But the numbers show stress. In the quarter ended 2026-06-30 (fiscal Q2 2026), revenue was $256.5M and net income was -$2.7M, or -$0.02 per diluted share. The prior quarter ended 2026-03-31 had revenue $251.0M and net loss $2.5M. In fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $250.6M and net loss was $10.9M. Full-year FY2025 revenue was $1.0B with net income $16.3M, after FY2023 net loss of $42.7M. So the Lynch category of TURNAROUND fits, though profitability is not yet durable. The FairStock data show a 7.41% dividend yield, debt-to-equity of 1.63, an Altman Z-Score of 0.02, and Piotroski F-Score of 3/9. Those are not comforting. The stock closed at $9.83 on 2026-10-13 and trades at P/B 0.90, meaning the market values it slightly below book. With FFO/AFFO absent, I cannot judge REIT earnings properly, but trailing free cash flow is $64.4M, only a 3.9% FCF yield, below the dividend yield. The asset base and location are attractive, but leverage and weak office demand make the valuation case uncertain. I would want evidence that revenue and occupancy are stabilizing and that dividends are covered before calling this a bargain.

In plain English: Douglas Emmett owns office buildings and apartments in Los Angeles and Honolulu. The business looks weak right now: revenue is roughly flat, recent quarters posted small losses, and debt is high, even though the dividend payout is large and the stock trades below the value of its net assets as recorded in its accounts. At $9.83, the price looks cheap compared with the asset value, but not clearly cheap compared with the weak profits and cash flow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer