Document

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q



☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2019



☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number: 001-33106

Douglas Emmett, Inc.

(Exact name of registrant as specified in its charter)



Maryland	20-3073047
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)



1299 Ocean Avenue, Suite 1000	,	Santa Monica	,	California	90401
(Address of principal executive offices)					(Zip Code)

(310) 255-7700

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value per share	DEI	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.



Class	Outstanding at	November 1, 2019
Common Stock, $0.01 par value per share	175,349,297	shares

DOUGLAS EMMETT, INC. FORM 10-Q

Table of Contents

		Page

	Glossary	3
	Forward Looking Statements	5

	PART I. FINANCIAL INFORMATION

Item 1	Financial Statements (unaudited)	6
	Consolidated Balance Sheets	6
	Consolidated Statements of Operations	7
	Consolidated Statements of Comprehensive Income (Loss)	8
	Consolidated Statements of Equity	9
	Consolidated Statements of Cash Flows	11
	Notes to Consolidated Financial Statements	13
	Overview	13
	Summary of Significant Accounting Policies	14
	Investment in Real Estate	16
	Ground Lease	17
	Acquired Lease Intangibles	18
	Investments in Unconsolidated Funds	19
	Other Assets	19
	Secured Notes Payable and Revolving Credit Facility, Net	20
	Interest Payable, Accounts Payable and Deferred Revenue	22
	Derivative Contracts	22
	Equity	25
	EPS	27
	Fair Value of Financial Instruments	28
	Segment Reporting	30
	Future Minimum Lease Rental Receipts	31
	Commitments, Contingencies & Guarantees	31
	Subsequent Events	32
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4	Controls and Procedures	49

	PART II. OTHER INFORMATION

Item 1	Legal Proceedings	50
Item 1A	Risk Factors	50
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3	Defaults Upon Senior Securities	50
Item 4	Mine Safety Disclosures	50
Item 5	Other Information	50
Item 6	Exhibits	50

	SIGNATURES	51

Table of Contents

Glossary

Abbreviations used in this Report:



AOCI	Accumulated Other Comprehensive Income (Loss)
ASC	Accounting Standards Codification
ASU	Accounting Standards Update
ATM	At-the-Market
BOMA	Building Owners and Managers Association
CEO	Chief Executive Officer
CFO	Chief Financial Officer
Code	Internal Revenue Code of 1986, as amended
DEI	Douglas Emmett, Inc.
EPS	Earnings Per Share
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
FFO	Funds From Operations
Fund X	Douglas Emmett Fund X, LLC
Funds	Unconsolidated institutional real estate funds (Fund X, Partnership X and Opportunity Fund)
GAAP	Generally Accepted Accounting Principles (United States)
JV	Joint Venture
LIBOR	London Interbank Offered Rate
LTIP Units	Long-Term Incentive Plan Units
NAREIT	National Association of Real Estate Investment Trusts
OCI	Other Comprehensive Income (Loss)
OP Units	Operating Partnership Units
Operating Partnership	Douglas Emmett Properties, LP
Opportunity Fund	Fund X Opportunity Fund, LLC
Partnership X	Douglas Emmett Partnership X, LP
PCAOB	Public Company Accounting Oversight Board (United States)
REIT	Real Estate Investment Trust
Report	Quarterly Report on Form 10-Q
SEC	Securities and Exchange Commission
Securities Act	Securities Act of 1933, as amended
TRS	Taxable REIT subsidiary(ies)
US	United States
USD	United States Dollar
VIE	Variable Interest Entity(ies)

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Glossary

Defined terms used in this Report:



Annualized Rent	Annualized cash base rent (excludes tenant reimbursements, parking and other revenue) before abatements under leases commenced as of the reporting date and expiring after the reporting date. Annualized Rent for our triple net office properties (in Honolulu and two single tenant buildings in Los Angeles) is calculated by adding expense reimbursements and estimates of normal building expenses paid by tenants to base rent. Annualized Rent does not include lost rent recovered from insurance and rent for building management use. Annualized Rent does include rent for a health club that we own and operate in Honolulu and our corporate headquarters in Santa Monica.
Consolidated Portfolio	Includes all of the properties included in our consolidated results, including our consolidated JVs.
Funds From Operations (FFO)	We calculate FFO in accordance with the standards established by NAREIT by excluding gains (or losses) on sales of investments in real estate, gains (or losses) from changes in control of investments in real estate, real estate depreciation and amortization (other than amortization of right-of-use assets for which we are the lessee and amortization of deferred loan costs) from our net income (including adjusting for the effect of such items attributable to consolidated JVs and unconsolidated Funds, but not for noncontrolling interests included in our Operating Partnership). FFO is a non-GAAP supplemental financial measure that we report because we believe it is useful to our investors. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Report for a discussion of FFO.
Net Operating Income (NOI)	We calculate NOI as revenue less operating expenses attributable to the properties that we own and operate. NOI is calculated by excluding the following from our net income: general and administrative expense, depreciation and amortization expense, other income, other expense, income, including depreciation, from unconsolidated Funds, interest expense, gains (or losses) on sales of investments in real estate and net income attributable to noncontrolling interests. NOI is a non-GAAP supplemental financial measure that we report because we believe it is useful to our investors. See Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Report for a discussion of our Same Property NOI.
Occupancy Rate	The percentage leased, excluding signed leases not yet commenced, as of the reporting date. Management space is considered leased and occupied, while space taken out of service during a repositioning is excluded from both the numerator and denominator for calculating percentage leased and occupied.
Recurring Capital Expenditures	Building improvements required to maintain revenues once a property has been stabilized, and excludes capital expenditures for (i) acquired buildings being stabilized, (ii) newly developed space, (iii) upgrades to improve revenues or operating expenses, (iv) casualty damage and (v) bringing the property into compliance with governmental or lender requirements.
Rentable Square Feet	Based on the BOMA remeasurement and consists of leased square feet (including square feet with respect to signed leases not commenced as of the reporting date), available square feet, building management use square feet and square feet of the BOMA adjustment on leased space.
Same Properties	Our consolidated properties that have been owned and operated by us in a consistent manner, and reported in our consolidated results during the entire span of both periods being compared. We exclude from our same property subset any properties (i) acquired during the comparative periods; (ii) sold, held for sale, contributed or otherwise removed from our consolidated financial statements during the comparative periods; or (iii) that underwent a major repositioning project or were impacted by development activity that we believed significantly affected the properties' results during the comparative periods.
Short-Term Leases	Represents leases that expired on or before the reporting date or had a term of less than one year, including hold over tenancies, month to month leases and other short term occupancies.
Total Portfolio	Includes our Consolidated Portfolio plus the properties owned by our Funds.

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Forward Looking Statements

This Report contains forward-looking statements within the meaning of the Section 27A of the Securities Act and Section 21E of the Exchange Act. You can find many (but not all) of these statements by looking for words such as “believe”, “expect”, “anticipate”, “estimate”, “approximate”, “intend”, “plan”, “would”, “could”, “may”, “future” or other similar expressions in this Report. We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. We caution investors that any forward-looking statements used in this Report, or those that we make orally or in writing from time to time, are based on our beliefs and assumptions, as well as information currently available to us. Actual outcomes will be affected by known and unknown risks, trends, uncertainties and factors 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 inevitably prove to be incorrect. As a result, our future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution when relying on previously reported forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends. Some of the risks and uncertainties that could cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include the following:


•	adverse economic or real estate developments affecting Southern California or Honolulu, Hawaii;


•	competition from other real estate investors in our markets;


•	decreasing rental rates or increasing tenant incentive and vacancy rates;


•	defaults on, early terminations of, or non-renewal of leases by tenants;


•	increases in interest rates or operating costs;


•	insufficient cash flows to service our outstanding debt or pay rent on ground leases;


•	difficulties in raising capital;


•	inability to liquidate real estate or other investments quickly;


•	adverse changes to rent control laws and regulations;


•	environmental uncertainties;


•	natural disasters;


•	insufficient insurance, or increases in insurance costs;


•	inability to successfully expand into new markets and submarkets;


•	difficulties in identifying properties to acquire and failure to complete acquisitions successfully;


•	failure to successfully operate acquired properties;


•	risks associated with property development;


•	risks associated with JVs;


•	conflicts of interest with our officers and reliance on key personnel;


•	changes in zoning and other land use laws;


•	adverse results of litigation or governmental proceedings;


•	failure to comply with laws, regulations and covenants that are applicable to our business;


•	possible terrorist attacks or wars;


•	possible cyber attacks or intrusions;


•	adverse changes to accounting rules;


•	weaknesses in our internal controls over financial reporting;


•	failure to maintain our REIT status under federal tax laws; and


•	adverse changes to tax laws, including those related to property taxes.

For further discussion of these and other risk factors see Item 1A. "Risk Factors” in our 2018 Annual Report on Form 10-K for the fiscal year ended December 31, 2018. This Report and all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date of this Report.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Douglas Emmett, Inc. Consolidated Balance Sheets (In thousands, except share data)


	September 30, 2019			December 31, 2018

	Unaudited
Assets
Investment in real estate:
Land	$	1,100,412		$	1,065,099
Buildings and improvements	8,454,991			7,995,203
Tenant improvements and lease intangibles	850,124			840,653
Property under development	85,288			129,753
Investment in real estate, gross	10,490,815			10,030,708
Less: accumulated depreciation and amortization	(2,433,974		)	(2,246,887		)
Investment in real estate, net	8,056,841			7,783,821
Ground lease right-of-use asset	7,481			—
Cash and cash equivalents	181,510			146,227
Tenant receivables	5,113			4,371
Deferred rent receivables	134,132			124,834
Acquired lease intangible assets, net	2,877			3,251
Interest rate contract assets	11,925			73,414
Investment in unconsolidated Funds	102,280			111,032
Other assets	18,736			14,759
Total Assets	$	8,520,895		$	8,261,709

Liabilities
Secured notes payable and revolving credit facility, net	$	4,176,967		$	4,134,030
Ground lease liability	10,884			—
Interest payable, accounts payable and deferred revenue	134,944			130,154
Security deposits	51,945			50,733
Acquired lease intangible liabilities, net	38,384			52,569
Interest rate contract liabilities	78,111			1,530
Dividends payable	45,598			44,263
Total liabilities	4,536,833			4,413,279

Equity
Douglas Emmett, Inc. stockholders' equity:
Common Stock, $0.01 par value, 750,000,000 authorized, 175,348,468 and 170,214,809 outstanding at September 30, 2019 and December 31, 2018, respectively	1,753			1,702
Additional paid-in capital	3,486,025			3,282,316
Accumulated other comprehensive (loss) income	(48,878		)	53,944
Accumulated deficit	(988,030		)	(935,630		)
Total Douglas Emmett, Inc. stockholders' equity	2,450,870			2,402,332
Noncontrolling interests	1,533,192			1,446,098
Total equity	3,984,062			3,848,430
Total Liabilities and Equity	$	8,520,895		$	8,261,709

See accompanying notes to the consolidated financial statements.

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Douglas Emmett, Inc.

Consolidated Statements of Operations

(Unaudited; in thousands, except per share data)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Revenues
Office rental
Rental revenues and tenant recoveries	$	175,017		$	166,680		$	513,926		$	490,319
Parking and other income	30,883			30,374			91,453			87,829
Total office revenues	205,900			197,054			605,379			578,148

Multifamily rental
Rental revenues	29,854			24,241			81,055			70,957
Parking and other income	2,315			2,041			6,355			5,947
Total multifamily revenues	32,169			26,282			87,410			76,904

Total revenues	238,069			223,336			692,789			655,052

Operating Expenses
Office expenses	68,754			66,288			196,511			188,462
Multifamily expenses	9,127			7,142			24,394			20,748
General and administrative expenses	9,218			9,440			28,209			28,444
Depreciation and amortization	90,279			74,067			248,876			219,944
Total operating expenses	177,378			156,937			497,990			457,598

Operating income	60,691			66,399			194,799			197,454

Other income	2,952			2,951			8,742			8,373
Other expenses	(1,656		)	(1,561		)	(5,308		)	(5,380		)
Income, including depreciation, from unconsolidated Funds	1,831			1,348			5,589			4,522
Interest expense	(40,397		)	(33,721		)	(107,753		)	(99,889		)
Net income	23,421			35,416			96,069			105,080
Less: Net income attributable to noncontrolling interests	(933		)	(4,855		)	(10,914		)	(14,629		)
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451

Net income per common share – basic	$	0.13		$	0.18		$	0.49		$	0.53
Net income per common share – diluted	$	0.13		$	0.18		$	0.49		$	0.53

See accompanying notes to the consolidated financial statements.

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Douglas Emmett, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited and in thousands)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Net income	$	23,421		$	35,416		$	96,069		$	105,080
Other comprehensive (loss) income: cash flow hedges	(33,179		)	10,042			(148,100		)	73,405
Comprehensive (loss) income	(9,758		)	45,458			(52,031		)	178,485
Less: Comprehensive loss (income) attributable to noncontrolling interests	9,221			(7,740		)	34,364			(36,490		)
Comprehensive (loss) income attributable to common stockholders	$	(537	)	$	37,718		$	(17,667	)	$	141,995

See accompanying notes to the consolidated financial statements.

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Douglas Emmett, Inc.

Consolidated Statements of Equity

(Unaudited and in thousands)



		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018

Shares of Common Stock	Beginning balance	175,223			169,921			170,215			169,565
	Exchange of OP units for common stock	125			—			201			342
	Issuance of common stock	—			—			4,932			—
	Exercise of stock options	—			7			—			21
	Ending balance	175,348			169,928			175,348			169,928

Common Stock	Beginning balance	$	1,752		$	1,699		$	1,702		$	1,696
	Exchange of OP units for common stock	1			—			2			3
	Issuance of common stock	—			—			49			—
	Ending balance	$	1,753		$	1,699		$	1,753		$	1,699

Additional Paid-in Capital	Beginning balance	$	3,484,180		$	3,277,643		$	3,282,316		$	3,272,539
	Exchange of OP units for common stock	1,985			240			3,207			5,717
	Repurchase of OP Units with cash	(140		)	—			(431		)	(59		)
	Issuance of common stock	—			—			200,933			—
	Taxes paid on exercise of stock options	—			(136		)	—			(450		)
	Ending balance	$	3,486,025		$	3,277,747		$	3,486,025		$	3,277,747

AOCI	Beginning balance	$	(25,853	)	$	87,486		$	53,944		$	43,099
	ASU 2017-12 adoption	—			—			—			211
	Cash flow hedge adjustments	(23,025		)	7,157			(102,822		)	51,333
	Ending balance	$	(48,878	)	$	94,643		$	(48,878	)	$	94,643

Accumulated Deficit	Beginning balance	$	(964,927	)	$	(905,085	)	$	(935,630	)	$	(879,810	)
	ASU 2016-02 adoption	—			—			(2,144		)	—
	ASU 2017-12 adoption	—			—			—			(211		)
	Net income attributable to common stockholders	22,488			30,561			85,155			90,451
	Dividends	(45,591		)	(42,486		)	(135,411		)	(127,440		)
	Ending balance	$	(988,030	)	$	(917,010	)	$	(988,030	)	$	(917,010	)

Noncontrolling Interests	Beginning balance	$	1,557,208		$	1,468,543		$	1,446,098		$	1,464,525
	ASU 2016-02 adoption	—			—			(355		)	—
	Net income attributable to noncontrolling interests	933			4,855			10,914			14,629
	Cash flow hedge adjustments	(10,154		)	2,885			(45,278		)	21,861
	Contributions	—			—			176,000			—
	Distributions	(15,726		)	(13,007		)	(59,700		)	(39,122		)
	Exchange of OP units for common stock	(1,986		)	(240		)	(3,209		)	(5,720		)
	Repurchase of OP Units with cash	(87		)	—			(303		)	(49		)
	Stock-based compensation	3,004			3,426			9,025			10,338
	Ending balance	$	1,533,192		$	1,466,462		$	1,533,192		$	1,466,462

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Douglas Emmett, Inc.

Consolidated Statements of Equity

(Unaudited and in thousands)




		Three Months Ended September 30,						Nine Months Ended September 30,
		2019			2018			2019			2018

Total Equity	Beginning balance	$	4,052,360		$	3,930,286		$	3,848,430		$	3,902,049
	ASU 2016-02 adoption	—			—			(2,499		)	—
	Net income	23,421			35,416			96,069			105,080
	Cash flow hedge adjustments	(33,179		)	10,042			(148,100		)	73,194
	Issuance of common stock, net	—			—			200,982			—
	Repurchase of OP Units with cash	(227		)	—			(734		)	(108		)
	Taxes paid on exercise of stock options	—			(136		)	—			(450		)
	Contributions	—			—			176,000			—
	Dividends	(45,591		)	(42,486		)	(135,411		)	(127,440		)
	Distributions	(15,726		)	(13,007		)	(59,700		)	(39,122		)
	Stock-based compensation	3,004			3,426			9,025			10,338
	Ending balance	$	3,984,062		$	3,923,541		$	3,984,062		$	3,923,541

	Dividends declared per common share	$	0.26		$	0.25		$	0.78		$	0.75

See accompanying notes to the consolidated financial statements.

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Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)



	Nine Months Ended September 30,
	2019			2018
Operating Activities
Net income	$	96,069		$	105,080
Adjustments to reconcile net income to net cash provided by operating activities:
Income, including depreciation, from unconsolidated Funds	(5,589		)	(4,522		)
Depreciation and amortization	248,876			219,944
Net accretion of acquired lease intangibles	(12,519		)	(17,243		)
Straight-line rent	(9,298		)	(12,715		)
Write-off of uncollectible amounts	(742		)	1,565
Deferred loan costs amortized and written off	10,603			6,285
Amortization of loan premium	(153		)	(153		)
Amortization of stock-based compensation	7,395			8,879
Operating distributions from unconsolidated Funds	5,589			4,522
Change in working capital components:
Tenant receivables	—			(3,625		)
Interest payable, accounts payable and deferred revenue	20,284			22,349
Security deposits	305			359
Other assets	(1,852		)	1,118
Net cash provided by operating activities	358,968			331,843

Investing Activities
Capital expenditures for improvements to real estate	(128,175		)	(115,963		)
Capital expenditures for developments	(44,756		)	(48,507		)
Insurance recoveries for damage to real estate	1,406			—
Property acquisition	(365,875		)	—
Acquisition of additional interests in unconsolidated Funds	(7,518		)	(9,379		)
Capital distributions from unconsolidated Funds	5,851			5,866
Net cash used in investing activities	(539,067		)	(167,983		)

Financing Activities
Proceeds from borrowings	1,782,557			597,000
Repayment of borrowings	(1,733,092		)	(595,151		)
Loan cost payments	(16,555		)	(2,964		)
Contributions from noncontrolling interests in consolidated JVs	163,556			—
Distributions paid to noncontrolling interests	(47,256		)	(39,122		)
Dividends paid to common stockholders	(134,076		)	(127,348		)
Taxes paid on exercise of stock options	—			(450		)
Repurchase of OP Units	(734		)	(108		)
Proceeds from issuance of common stock, net	200,982			—
Net cash provided by (used in) financing activities	215,382			(168,143		)

Increase (decrease) in cash and cash equivalents and restricted cash	35,283			(4,283		)
Cash and cash equivalents and restricted cash - beginning balance	146,348			176,766
Cash and cash equivalents and restricted cash - ending balance	$	181,631		$	172,483

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Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)

Supplemental Cash Flows Information



	Nine Months Ended September 30,
	2019			2018
Operating Activities
Cash paid for interest, net of capitalized interest	$	98,424		$	93,455
Capitalized interest paid	$	2,805		$	2,408

Non-cash Investing Transactions
Accrual for additions to real estate and developments	$	6,641		$	24,681
Capitalized stock-based compensation for improvements to real estate and developments	$	1,630		$	1,460
Removal of fully depreciated and amortized tenant improvements and lease intangibles	$	62,825		$	32,332
Removal of fully amortized acquired lease intangible assets	$	1,874		$	1,180
Removal of fully accreted acquired lease intangible liabilities	$	28,152		$	10,515
Property acquisition accrual	$	10		$	—
Recognition of ground lease right-of-use asset - Adoption of ASU 2016-02	$	10,885		$	—
Above-market ground lease intangible liability offset against right-of-use asset - Adoption of ASU 2016-02	$	3,408		$	—
Recognition of ground lease liability - Adoption of ASU 2016-02	$	10,885		$	—

Non-cash Financing Transactions
Gain recorded in AOCI - Adoption of ASU 2017-12 - consolidated derivatives	$	—		$	211
(Loss) gain recorded in AOCI - consolidated derivatives	$	(116,251	)	$	70,806
(Loss) gain recorded in AOCI - unconsolidated Funds' derivatives (our share)	$	(7,995	)	$	8,087
Accrual for deferred loan costs	$	1,862		$	136
Non-cash contributions from noncontrolling interests in consolidated JVs	$	12,444		$	—
Non-cash distributions to noncontrolling interests	$	12,444		$	—
Dividends declared	$	135,411		$	127,440
Exchange of OP units for common stock	$	3,209		$	5,720

See accompanying notes to the consolidated financial statements.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited)

1. Overview

Organization and Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. Through our interest in our Operating Partnership and its subsidiaries, consolidated JVs and unconsolidated Funds, we focus on owning, acquiring, developing and managing a significant market share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. The terms "us," "we" and "our" as used in the consolidated financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis. At September 30, 2019, our Consolidated Portfolio consisted of (i) a 16.5 million square foot office portfolio, (ii) 4,147 multifamily apartment units and (iii) fee interests in two parcels of land from which we receive rent under ground leases. We also manage and own equity interests in unconsolidated Funds which, at September 30, 2019, owned an additional 1.8 million square feet of office space. We manage our unconsolidated Funds alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. As of September 30, 2019, our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following properties (including ancillary retail space):



	Consolidated Portfolio	Total Portfolio
Office
Wholly-owned properties	53	53
Consolidated JV properties	11	11
Unconsolidated Fund properties	—	8
	64	72

Multifamily
Wholly-owned properties	10	10
Consolidated JV properties	1	1
	11	11

Total	75	83

Basis of Presentation

The accompanying consolidated financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements.

We consolidate entities in which we are considered to be the primary beneficiary of a VIE or have a majority of the voting interest of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of that VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We do not consolidate entities in which the other parties have substantive kick-out rights to remove our power to direct the activities, most significantly impacting the economic performance, of that VIE. In determining whether we are the primary beneficiary, we consider factors such as ownership interest, management representation, authority to control decisions, and contractual and substantive participating rights of each party.

We consolidate our Operating Partnership through which we conduct substantially all of our business, and own, directly and through subsidiaries, substantially all of our assets, and are obligated to repay substantially all of our liabilities, including $3.07 billion of consolidated debt. See Note 8. We also consolidate three JVs. As of September 30, 2019, these consolidated entities had aggregate total consolidated assets of $8.52 billion (of which $8.06 billion related to investment in real estate), aggregate total consolidated liabilities of $4.54 billion (of which $4.18 billion related to debt), and aggregate total consolidated equity of $3.98 billion (of which $1.53 billion related to noncontrolling interests).

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

In accordance with Topic 842 (as defined in Note 2 below), which we adopted in the first quarter of 2019, we report our office rental revenues and tenant recoveries on a combined basis as Rental revenues and tenant recoveries under Office rental in our consolidated statements of operations, and we reclassified the comparable periods to conform to the current period presentation. See Note 2

The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in conformity with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim consolidated financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in our 2018 Annual Report on Form 10-K and the notes thereto. Any references to the number or class of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the PCAOB.

2. Summary of Significant Accounting Policies

On January 1, 2019, we adopted ASUs that changed our accounting policy for leases. See "New Accounting Pronouncements" below. We have not made any other changes to our significant accounting policies in our 2018 Annual Report on Form 10-K.

Use of Estimates

The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Revenue Recognition

Office parking revenues, which are included in Parking and other income under Office rental in our consolidated statements of operations, are within the scope of ASC 606 ("Revenue from Contracts with Customers"). Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing. Office parking revenues were $27.3 million and $26.0 million for the three months ended September 30, 2019 and 2018, respectively, and $80.5 million and $76.8 million for the nine months ended September 30, 2019 and 2018, respectively. Office parking receivables were $1.2 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Tenant receivables in our consolidated balance sheets.

Income Taxes

We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.

New Accounting Pronouncements

Changes to US GAAP are implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not issued any other ASUs that we expect to be applicable and have a material impact on our consolidated financial statements.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

ASUs Adopted

ASU 2016-02 (Topic 842 - "Leases")

In February 2016, the FASB issued ASU No. 2016-02, (Topic 842 - "Leases"). The primary impact of the ASU is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases. The accounting applied by lessors is largely unchanged. For example, the vast majority of operating leases remain classified as operating leases, and lessors continue to recognize lease payments for those leases on a straight-line basis over the lease term.

We adopted the ASU on January 1, 2019 using the modified retrospective transition method. We recorded cumulative adjustments of $2.1 million and $0.4 million to the opening balances of accumulated deficit and noncontrolling interests, respectively, for leasing expenses related to leases that were entered into before the adoption date but commenced after the adoption date. The ASU provides a practical expedient package, which we elected to use, that allows entities (a) not to reassess whether any expired or existing contracts as of the adoption date are considered or contain leases; (b) not to reassess the lease classification for any expired or existing leases as of the adoption date; and (c) not to reassess initial direct costs for any existing leases as of the adoption date. All leases entered into on or after the adoption date were accounted for under the ASU.

We lease space to tenants at our office and multifamily properties. Under the ASU, all of our tenant leases continue to be classified as operating leases. The ASU continues to require that lease payments for operating leases be recognized over the lease term on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which benefit is expected to be derived from the use of the underlying asset. If collectibility of the lease payments is not probable at the commencement date, then the lease income should be limited to the lesser of the income recognized on a straight-line basis or cash basis. If the assessment of collectibility changes after the commencement date, any difference between the lease income that would have been recognized on a straight-line basis and cash basis must be recognized as a current-period adjustment to lease income. We elected to adopt the complete impairment model guidance within ASC 842. Under this model we no longer maintain a general reserve related to our receivables, and instead analyze, on a lease-by-lease basis, whether amounts due under the operating lease are deemed probable for collection. We write off tenant and deferred rent receivables as a charge against rental revenue in the period we determine amounts receivable are not probable for collection.

The ASU requires separation of the lease from the non-lease components (for example, maintenance services or other activities that transfer a good or service to the customer) in a contract. Only the lease components are accounted for in accordance with the ASU. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone selling price basis and the non-lease component would be accounted for in accordance with ASC 606 ("Revenue from Contracts with Customers"). In July 2018, the FASB issued ASU No. 2018-11 which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components if certain criteria are met. Our office tenant leases include a lease component for the rental income and a non-lease component for the related tenant recoveries. We determined that our office tenant leases qualify for the single component presentation and we adopted the practical expedient. We account for the combined components under the ASU.

Rental revenues and tenant recoveries from our office tenant leases is included in Rental revenues and tenant recoveries under Office rental in our consolidated statements of operations. Rental revenues from our multifamily tenant leases is included in multifamily Rental revenues in our consolidated statements of operations. Rental revenue recognized on a straight-line basis in excess of billed rents is included in Deferred rent receivables in our consolidated balance sheets. See Note 15 for more information regarding the future lease rental receipts from our operating leases.

The ASU defines initial direct costs of a lease, which may be capitalized, as costs that would not have been incurred had the lease not been executed. Costs to negotiate a lease that would have been incurred regardless of whether the lease was executed, such as employee salaries, are not considered to be initial direct costs, and may not be capitalized. We historically capitalized most of our leasing costs. We expensed $1.0 million and $3.1 million during the three and nine months ended September 30, 2019, respectively, of leasing costs related to our tenant leases that did not qualify as initial direct costs of a lease, which are included in General and administrative expenses in our consolidated statements of operations.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

We pay rent under a ground lease which expires on December 31, 2086. Upon adoption of the ASU, we continued to classify the lease as an operating lease, and we recognized a right-of-use asset for the land and a lease liability for the future lease payments of $10.9 million. We calculated the carrying value of the right-of-use asset and lease liability by discounting the future lease payments using our incremental borrowing rate. We adjusted the right-of-use asset carrying value for a related above-market ground lease liability of $3.4 million, which reduced the carrying value of the asset to $7.5 million. We continued to recognize the lease payments as expense, which is included in Office expenses in our consolidated statements of operations. See Note 4 for more information regarding this ground lease. See Note 13 for the fair value disclosures related to the ground lease liability.

In December 2018, the FASB issued ASU 2018-20, an update to ASU 2016-02, which provides guidance on accounting for sales and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and nonlease components. We adopted the ASU and it did not have a material impact on our consolidated financial statements.

In March 2019, the FASB issued ASU 2019-01, an update to ASU 2016-02, which provides guidance on transition disclosures related to Topic 250 "Accounting Changes and Error Corrections" and other technical updates. We adopted the ASU and it did not have a material impact on our consolidated financial statements.

ASUs Not Yet Adopted

ASU 2016-13 (Topic 326 - "Financial Instruments-Credit Losses")

In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. The ASU would impact our measurement of credit losses for our Office parking receivables, which were $1.2 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Tenant receivables in our consolidated balance sheets. We expect to adopt the ASU in the first quarter of 2020 and we do not expect the ASU to have a material impact on our consolidated financial statements.

3. Investment in Real Estate

We account for our property acquisitions as asset acquisitions. The acquired property's results of operations are included in our results of operations from the respective acquisition date. On June 7, 2019, we acquired The Glendon, a residential community in Westwood, and on June 28, 2019, we contributed the property to a consolidated JV that we manage and in which we own a twenty percent capital interest. The table below summarizes the purchase price allocation for the acquisition. The contract and purchase prices differ due to prorations and similar adjustments:



(In thousands, except number of units)	The Glendon

Submarket	West Los Angeles
Acquisition date	June 7, 2019
Contract price	$	365,100
Number of multifamily units	350
Retail square footage	50

Investment in real estate:
Land	$	32,773
Buildings and improvements	333,624
Tenant improvements and lease intangibles	2,301
Acquired above- and below-market leases, net	(2,114		)
Net assets and liabilities acquired	$	366,584

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

4. Ground Lease

We pay rent under a ground lease located in Honolulu, Hawaii, which expires on December 31, 2086. The rent is fixed at $733 thousand per year until February 28, 2029, after which it will reset to the greater of the existing ground rent or market. As of September 30, 2019, the right-of-use asset carrying value of this ground lease was $7.5 million and the ground lease liability was $10.9 million. We incurred ground rent expense, net of amounts capitalized, of $170 thousand and $183 thousand for the three months ended September 30, 2019 and 2018, respectively, and $532 thousand and $550 thousand for the nine months ended September 30, 2019 and 2018, respectively, which is included in Office expenses in our consolidated statements of operations. The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of September 30, 2019:



Twelve months ending September 30:	(In thousands)

2020	$	733
2021	733
2022	733
2023	733
2024	733
Thereafter	45,628
Total future minimum lease payments	$	49,293

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

5. Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles



(In thousands)	September 30, 2019			December 31, 2018

Above-market tenant leases	$	3,745		$	5,595
Above-market tenant leases - accumulated amortization	(1,800		)	(3,289		)
Above-market ground lease where we are the lessor	1,152			1,152
Above-market ground lease - accumulated amortization	(220		)	(207		)
Acquired lease intangible assets, net	$	2,877		$	3,251

Below-market tenant leases	$	86,159		$	112,175
Below-market tenant leases - accumulated accretion	(47,775		)	(63,013		)
Above-market ground lease where we are the tenant⁽¹⁾	—			4,017
Above-market ground lease - accumulated accretion⁽¹⁾	—			(610		)
Acquired lease intangible liabilities, net	$	38,384		$	52,569

______________________________________________

(1) Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value for the carrying value of the above-market ground lease - see Notes 2 and 4.

Impact on the Consolidated Statements of Operations

The table below summarizes the net amortization/accretion related to our above- and below-market leases:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018

Net accretion of above- and below-market tenant lease assets and liabilities⁽¹⁾	$	4,009		$	4,940		$	12,533		$	17,218
Amortization of an above-market ground lease asset⁽²⁾	(6		)	(5		)	(14		)	(13		)
Accretion of an above-market ground lease liability⁽³⁾	—			13			—			38
Total	$	4,003		$	4,948		$	12,519		$	17,243

______________________________________________


(1)	Recorded as a net increase to office and multifamily rental revenues.


(2)	Recorded as a decrease to office parking and other income.


(3)	Recorded as a decrease to office expense. Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value with the carrying value of the above-market ground lease - see Notes 2 and 4.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

6. Investments in Unconsolidated Funds

Description of our Funds

We manage and own equity interests in three unconsolidated Funds, the Opportunity Fund, Fund X and Partnership X, through which we and other investors in the Funds own eight office properties totaling 1.8 million square feet. During the nine months ended September 30, 2019 we purchased an additional 1.4% interest in Fund X. At September 30, 2019, we held direct and indirect equity interests of 6.2% of the Opportunity Fund, 72.7% of Fund X and 24.6% of Partnership X. Our Funds pay us fees and reimburse us for certain expenses related to property management and other services we provide, which are included in Other income in our consolidated statements of operations. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents cash distributions we received from our Funds:



	Nine Months Ended September 30,
(In thousands)	2019		2018

Operating distributions received	$	5,589	$	4,522
Capital distributions received	5,851		5,866
Total distributions received	$	11,440	$	10,388

Summarized Financial Information for our Funds

The tables below present selected financial information for the Funds on a combined basis. The amounts presented reflect 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value:



(In thousands)	September 30, 2019		December 31, 2018

Total assets	$	677,022	$	694,713
Total liabilities	$	533,467	$	525,483
Total equity	$	143,555	$	169,230



	Nine Months Ended September 30,
(In thousands)	2019		2018

Total revenues	$	62,239	$	58,935
Operating income	$	18,033	$	16,870
Net income	$	5,759	$	4,333

7. Other Assets



(In thousands)	September 30, 2019		December 31, 2018

Restricted cash	$	121	$	121
Prepaid expenses	10,750		7,830
Other indefinite-lived intangibles	1,988		1,988
Furniture, fixtures and equipment, net	2,307		1,101
Other	3,570		3,719
Total other assets	$	18,736	$	14,759

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

8. Secured Notes Payable and Revolving Credit Facility, Net



Description	Maturity Date⁽¹⁾	Principal Balance as of September 30, 2019			Principal Balance as of December 31, 2018			Variable Interest Rate	Fixed Interest Rate⁽²⁾	Swap Maturity Date

		(In thousands)

Wholly Owned Subsidiaries
Fannie Mae loan⁽³⁾	—	$	—		$	145,000		—	—	—
Fannie Mae loan⁽³⁾	—	—			115,000			—	—	—
Term loan⁽³⁾	—	—			220,000			—	—	—
Term loan⁽³⁾	—	—			340,000			—	—	—
Term loan⁽³⁾	—	—			400,000			—	—	—
Term loan⁽³⁾	—	—			180,000			—	—	—
Term loan⁽⁴⁾⁽⁵⁾	6/23/2023	360,000			360,000			LIBOR + 1.55%	2.57%	7/1/2021
Term loan⁽⁵⁾	1/1/2024	300,000			300,000			LIBOR + 1.55%	3.46%	1/1/2022
Term loan⁽⁵⁾	3/3/2025	335,000			335,000			LIBOR + 1.30%	3.84%	3/1/2023
Fannie Mae loan⁽⁵⁾⁽⁶⁾	4/1/2025	102,400			102,400			LIBOR + 1.25%	2.84%	3/1/2023
Term loan^(5)(7)(8)	8/15/2026	415,000			—			LIBOR + 1.10%	2.58%	8/1/2025
Term loan⁽⁵⁾⁽⁷⁾	9/19/2026	400,000			—			LIBOR + 1.15%	2.44%	9/1/2024
Term loan^(5)(7)(9)	9/26/2026	200,000			—			LIBOR + 1.20%	2.77%	10/1/2024
Fannie Mae loan⁽⁵⁾	6/1/2027	550,000			550,000			LIBOR + 1.37%	3.16%	6/1/2022
Fannie Mae loan⁽⁵⁾⁽⁷⁾	6/1/2029	255,000			—			LIBOR + 0.98%	3.26%	6/1/2027
Fannie Mae loan^(5)(7)(10)	6/1/2029	125,000			—			LIBOR + 0.98%	2.55%	6/1/2027
Term loan⁽¹¹⁾	6/1/2038	31,046			31,582			N/A	4.55%	N/A
Revolving credit facility⁽¹²⁾	8/21/2023	—			105,000			LIBOR + 1.15%	N/A	N/A
Total Wholly Owned Subsidiary Debt		3,073,446			3,183,982

Consolidated JVs
Term loan⁽⁵⁾	2/28/2023	580,000			580,000			LIBOR + 1.40%	2.37%	3/1/2021
Term loan⁽⁵⁾	12/19/2024	400,000			400,000			LIBOR + 1.30%	3.47%	1/1/2023
Term loan^{(5) (7)}	6/1/2029	160,000			—			LIBOR + 0.98%	3.25%	7/1/2027
Total Consolidated Debt⁽¹³⁾		4,213,446			4,163,982
Unamortized loan premium, net		3,832			3,986
Unamortized deferred loan costs, net		(40,311		)	(33,938		)
Total Consolidated Debt, net		$	4,176,967		$	4,134,030

_______________________________________________________________________

Except as noted below, each loan (including our revolving credit facility) is non-recourse and secured by one or more separate collateral pools consisting of one or more properties, and requires monthly payments of interest only with the outstanding principal due upon maturity.


(1)	Maturity dates include the effect of extension options.


(2)	Effective rate as of September 30, 2019. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 10 for details of our interest rate swaps. See below for details of our loan costs.


(3)	These loans were paid off during the nine months ended September 30, 2019.


(4)	We paid this loan off on November 1, 2019. See Note 17.


(5)	The loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.


(6)	The effective rate will decrease to 2.76% on March 2, 2020.


(7)	These loans were closed during the nine months ended September 30, 2019.


(8)	Effective rate will increase to 3.07% on April 1, 2020.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)


(9)	Effective rate will decrease to 2.36% on July 1, 2020.


(10)	Effective rate will increase to 3.25% on December 1, 2020.


(11)	Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.


(12)	In March 2019, we renewed our $400.0 million revolving credit facility, releasing two previously encumbered properties, lowering the borrowing rate and unused facility fees, and extending the maturity date. Unused commitment fees range from 0.10% to 0.15%. The loan agreement includes a zero-percent LIBOR floor.


(13)	The table does not include our unconsolidated Funds' loans - see Note 16. See Note 13 for our fair value disclosures.

Debt Statistics

The following table summarizes our consolidated fixed and floating rate debt:



(In thousands)	Principal Balance as of September 30, 2019		Principal Balance as of December 31, 2018

Aggregate swapped to fixed rate loans	$	4,182,400	$	3,882,400
Aggregate fixed rate loans	31,046		31,582
Aggregate floating rate loans	—		250,000
Total Debt	$	4,213,446	$	4,163,982

The following table summarizes certain consolidated debt statistics as of September 30, 2019:



Statistics for consolidated loans with interest fixed under the terms of the loan or a swap

Principal balance (in billions)		$4.21
Weighted average remaining life (including extension options)		6.2 years
Weighted average remaining fixed interest period		3.9 years
Weighted average annual interest rate		3.00%

Future Principal Payments

At September 30, 2019, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows:



Twelve months ending September 30:	Excluding Maturity Extension Options		Including Maturity Extension Options⁽¹⁾

	(In thousands)

2020	$	743	$	743
2021	778		778
2022	300,814		814
2023	1,275,852		940,852
2024	891		300,891
Thereafter	2,634,368		2,969,368
Total future principal payments	$	4,213,446	$	4,213,446

____________________________________________


(1)	Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Loan Costs

Deferred loan costs are net of accumulated amortization of $28.9 million and $24.2 million at September 30, 2019 and December 31, 2018, respectively. The table below presents loan costs, which are included in Interest expense in our consolidated statements of operations:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Loan costs expensed	$	1,751	$	—	$	1,751	$	—
Deferred loan costs written off	4,416		7		4,992		411
Deferred loan cost amortization	1,807		1,999		5,611		5,874
Total	$	7,974	$	2,006	$	12,354	$	6,285

9. Interest Payable, Accounts Payable and Deferred Revenue



(In thousands)	September 30, 2019		December 31, 2018

Interest payable	$	9,537	$	10,657
Accounts payable and accrued liabilities	79,749		75,111
Deferred revenue	45,658		44,386
Total interest payable, accounts payable and deferred revenue	$	134,944	$	130,154

10. Derivative Contracts

We make use of interest rate swap and cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. In limited instances, we also make use of interest rate caps to limit our exposure to interest rate increases on our floating-rate debt. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 8 regarding our debt, and our consolidated JVs' debt, that is hedged. See Note 16 regarding our unconsolidated Funds debt that is hedged.

Derivative Summary

As of September 30, 2019, our interest rate swaps, which include the interest rate swaps of our consolidated JVs and our unconsolidated Funds, were designated as cash flow hedges:



	Number of Interest Rate Swaps	Notional (In thousands)

Consolidated derivatives^(1)(2)(4)(5)	38	$	4,684,800
Unconsolidated Funds' derivatives⁽³⁾⁽⁴⁾	4	$	510,000

___________________________________________________


(1)	The notional amount reflects 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	Includes forward swaps with a total notional of $502.4 million.


(3)	The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.


(4)	See Note 13 for our derivative fair value disclosures.


(5)	See Note 17 for swaps that we executed after September 30, 2019.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Credit-risk-related Contingent Features

Our swaps include credit-risk related contingent features. For example, we have agreements with certain of our interest rate swap counterparties that contain a provision under which we could be declared in default on our derivative obligations if repayment of the underlying indebtedness that we are hedging is accelerated by the lender due to our default on the indebtedness. As of September 30, 2019, there have been no events of default with respect to our interest rate swaps or our consolidated JVs' or unconsolidated Funds' interest rate swaps. We do not post collateral for our interest rate swap contract liabilities. The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, was as follows:



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	80,832	$	1,681
Unconsolidated Funds' derivatives⁽²⁾	$	3,970	$	—

___________________________________________________


(1)	Includes 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

Counterparty Credit Risk

We are subject to credit risk from the counterparties on our interest rate swap contract assets because we do not receive collateral. We seek to minimize that risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. The fair value of our interest rate swap contract assets, including accrued interest and excluding credit risk adjustments, was as follows:



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	13,238	$	76,021
Unconsolidated Funds' derivatives⁽²⁾	$	1,136	$	12,576

___________________________________________________


(1)	The amounts reflect 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Impact of Hedges on AOCI and the Consolidated Statements of Operations

The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations:



(In thousands)	Nine Months Ended September 30,
	2019			2018
Derivatives Designated as Cash Flow Hedges:

Consolidated derivatives:
Gain recorded in AOCI - adoption of ASU 2017-12⁽¹⁾	$	—		$	211
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(116,251	)	$	70,806
Gains reclassified from AOCI to Interest Expense⁽¹⁾	$	(22,202	)	$	(5,316	)
Interest Expense presented in the consolidated statements of operations	$	(107,753	)	$	(99,889	)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(7,995	)	$	8,087
Gains reclassified from AOCI to Income, including depreciation, from unconsolidated Funds⁽¹⁾	$	(1,652	)	$	(383	)
Income, including depreciation, from unconsolidated Funds presented in the consolidated statements of operations	$	5,589		$	4,522

___________________________________________________


(1)	See Note 11 for our AOCI reconciliation.


(2)	We calculate our share by multiplying the total amount for each Fund by our direct and indirect equity interest in the respective Fund.

Future Reclassifications from AOCI

At September 30, 2019, our estimate of the AOCI related to derivatives designated as cash flow hedges that will be reclassified to earnings during the next twelve months as interest rate swap payments are made is as follows:



	(In thousands)

Consolidated derivatives:
Losses to be reclassified from AOCI to Interest Expense	$	1,581
Unconsolidated Funds' derivatives (our share):
Losses to be reclassified from AOCI to Income, including depreciation, from unconsolidated Funds	$	226

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

11. Equity

Transactions

During the nine months ended September 30, 2019, (i) we acquired 201 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, (ii) we acquired 19 thousand OP Units and fully-vested LTIP Units for $734 thousand in cash, and (iii) we issued 4.9 million shares of our common stock under our ATM program for net proceeds of $201.2 million.

We also purchased a property on June 7, 2019 for a contract price of $365.1 million, which we subsequently contributed to one of our consolidated JVs on June 28, 2019. We manage and own a twenty percent capital interest in the JV. The acquisition and related working capital was funded with (i) a secured, non-recourse $160.0 million interest-only loan scheduled to mature in June 2029, which was assumed by the consolidated JV to which we contributed the property, (ii) a $44.0 million capital contribution by us to the JV, and (iii) a $176.0 million capital contribution by Noncontrolling interests in the JV. See Note 3 for more information regarding the property acquisition and Note 8 for more information regarding the loan.

During the nine months ended September 30, 2018, we (i) acquired 352 thousand OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, (ii) acquired 3 thousand OP Units for $108 thousand in cash and (iii) issued 21 thousand shares of our common stock for the exercise of 48 thousand stock options on a net settlement basis (net of the exercise price and related taxes).

Noncontrolling Interests

Our noncontrolling interests consist of interests in our Operating Partnership and consolidated JVs which are not owned by us. Noncontrolling interests in our Operating Partnership owned 28.0 million OP Units and fully-vested LTIP Units, and represented approximately 14% of our Operating Partnership's total outstanding interests as of September 30, 2019 when we owned 175.3 million OP Units (to match our 175.3 million shares of outstanding common stock). A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership. Investors who own OP Units have the right to cause our Operating Partnership to acquire their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of acquisition, or, at our election, exchange their OP Units for shares of our common stock on a one-for-one basis. LTIP Units have been granted to our employees and non-employee directors as part of their compensation. These awards generally vest over a service period and once vested can generally be converted to OP Units provided our stock price increases by more than a specified hurdle.

Changes in our Ownership Interest in our Operating Partnership

The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Net income attributable to common stockholders	$	85,155		$	90,451

Transfers from noncontrolling interests:
Exchange of OP Units with noncontrolling interests	3,209			5,720
Repurchase of OP Units from noncontrolling interests	(431		)	(59		)
Net transfers from noncontrolling interests	2,778			5,661

Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	87,933		$	96,112

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

AOCI Reconciliation⁽¹⁾

The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Beginning balance	$	53,944		$	43,099
Adoption of ASU 2017-12 - cumulative opening balance adjustment	—			211
Consolidated derivatives:
Other comprehensive (loss) income before reclassifications	(116,251		)	70,806
Reclassification of gains from AOCI to Interest Expense	(22,202		)	(5,316		)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
Other comprehensive (loss) income before reclassifications	(7,995		)	8,087
Reclassification of gains from AOCI to Income, including depreciation, from unconsolidated Funds	(1,652		)	(383		)
Net current period OCI	(148,100		)	73,405
OCI attributable to noncontrolling interests	45,278			(21,861		)
OCI attributable to common stockholders	(102,822		)	51,544

Ending balance	$	(48,878	)	$	94,643

___________________________________________________


(1)	See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures.


(2)	We calculate our share by multiplying the total amount for each Fund by our equity interest in the respective Fund.

Equity Compensation

On June 2, 2016, the Douglas Emmett 2016 Omnibus Stock Incentive Plan ("2016 Plan") became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett 2006 Omnibus Stock Incentive Plan ("2006 Plan"), both of which allow for awards to our directors, officers, employees and consultants. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Grants after June 2, 2016 were awarded under the 2016 Plan, while grants prior to that date were awarded under the 2006 Plan (grants under the 2006 Plan remain outstanding according to their terms). Both plans are administered by the compensation committee of our board of directors. The table below presents our stock-based compensation expense:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Stock-based compensation expense, net	$	2,382	$	2,932	$	7,395	$	8,879
Capitalized stock-based compensation	$	622	$	512	$	1,630	$	1,460
Intrinsic value of options exercised	$	—	$	393	$	—	$	1,196

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

12. EPS

We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Numerator (In thousands):
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451
Allocation to participating securities: Unvested LTIP Units	(87		)	(149		)	(350		)	(442		)
Net income attributable to common stockholders - basic and diluted	$	22,401		$	30,412		$	84,805		$	90,009

Denominator (In thousands):
Weighted average shares of common stock outstanding - basic	175,278			169,926			172,684			169,815
Effect of dilutive securities:Stock options⁽¹⁾	—			5			—			13
Weighted average shares of common stock and common stock equivalents outstanding - diluted	175,278			169,931			172,684			169,828

Net income per common share - basic	$	0.13		$	0.18		$	0.49		$	0.53

Net income per common share - diluted	$	0.13		$	0.18		$	0.49		$	0.53

____________________________________________________


(1)	There were no outstanding options during the nine months ended September 30, 2019. The following securities were excluded from the calculation of diluted EPS during the periods noted because including them for those periods would be anti-dilutive to the calculation:



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2019	2018	2019	2018

OP Units	26,211	26,630	26,278	26,736
Vested LTIP Units	1,838	812	1,833	807

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

13. Fair Value of Financial Instruments

Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows:

Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.

Level 3 - inputs are unobservable assumptions generated by the reporting entity

As of September 30, 2019, we did not have any fair value estimates of financial instruments using Level 3 inputs.

Financial instruments disclosed at fair value

Short term financial instruments: The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit line, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments.

Secured notes payable: See Note 8 for the details of our secured notes payable. We estimate the fair value of our consolidated secured notes payable by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and excludes any maturity extension options. The table below presents the estimated fair value and carrying value of our secured notes payable (excluding our revolving credit facility), the carrying value includes unamortized loan premium and excludes unamortized deferred loan fees:



(In thousands)	September 30, 2019		December 31, 2018

Fair value	$	4,237,849	$	4,087,979
Carrying value	$	4,213,446	$	4,062,968

Ground lease liability: See Note 4 for the details of our ground lease. We estimate the fair value of our ground lease liability by calculating the present value of the future lease payments disclosed in Note 4 using our incremental borrowing rate. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs. The table below presents the estimated fair value and carrying value of our ground lease liability:



(In thousands)	September 30, 2019

Fair value	$	12,760
Carrying value	$	10,884

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Financial instruments measured at fair value

Derivative instruments: See Note 10 for the details of our derivatives. We present our derivatives on the balance sheet at fair value, on a gross basis, excluding accrued interest. We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative. The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own nonperformance risk. Our derivatives are not subject to master netting arrangements. The table below presents the estimated fair value of our derivatives:



(In thousands)	September 30, 2019		December 31, 2018
Derivative Assets:
Fair value - consolidated derivatives⁽¹⁾	$	11,925	$	73,414
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	1,034	$	12,228

Derivative Liabilities:
Fair value - consolidated derivatives⁽¹⁾	$	78,111	$	1,530
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	4,009	$	—

____________________________________________________


(1)	Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets.


(2)	Reflects 100%, not our pro-rata share, of our unconsolidated Funds' derivatives. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated Funds in our consolidated balance sheets. See Note 16 regarding our unconsolidated Funds debt and derivatives.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

14. Segment Reporting

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes. We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate. The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The table below presents the operating activity of our reportable segments:



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Office Segment
Total office revenues	$	205,900		$	197,054		$	605,379		$	578,148
Office expenses	(68,754		)	(66,288		)	(196,511		)	(188,462		)
Office segment profit	137,146			130,766			408,868			389,686

Multifamily Segment
Total multifamily revenues	32,169			26,282			87,410			76,904
Multifamily expenses	(9,127		)	(7,142		)	(24,394		)	(20,748		)
Multifamily segment profit	23,042			19,140			63,016			56,156

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842

The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders:



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842
General and administrative expenses	(9,218		)	(9,440		)	(28,209		)	(28,444		)
Depreciation and amortization	(90,279		)	(74,067		)	(248,876		)	(219,944		)
Other income	2,952			2,951			8,742			8,373
Other expenses	(1,656		)	(1,561		)	(5,308		)	(5,380		)
Income, including depreciation, from unconsolidated Funds	1,831			1,348			5,589			4,522
Interest expense	(40,397		)	(33,721		)	(107,753		)	(99,889		)
Net income	23,421			35,416			96,069			105,080
Less: Net income attributable to noncontrolling interests	(933		)	(4,855		)	(10,914		)	(14,629		)
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

15. Future Minimum Lease Rental Receipts

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement of certain operating expenses, and we own fee interests in two parcels of land from which we receive rent under ground leases. The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases at September 30, 2019:



Twelve months ending September 30:	(In thousands)

2020	$	603,132
2021	529,062
2022	442,362
2023	357,131
2024	273,685
Thereafter	673,833
Total future minimum base rentals⁽¹⁾	$	2,879,205

_____________________________________________________

(1)

Does not include (i) residential leases, which typically have a term of one year or less, (ii) holdover rent, (iii) other types of rent such as storage and antenna rent, (iv) tenant reimbursements, (v) straight- line rent, (vi) amortization/accretion of acquired above/below-market lease intangibles and (vii) percentage rents. The amounts assume that early termination options held by tenants are not exercised.

16. Commitments, Contingencies and Guarantees

Legal Proceedings

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.

Concentration of Risk

We are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits or letters of credit from our tenants. For the nine months ended September 30, 2019 and 2018, no tenant accounted for more than 10% of our total revenues.

All of our properties, including the properties of our consolidated JVs and unconsolidated Funds, are located in Los Angeles County, California and Honolulu, Hawaii, and we are therefore susceptible to adverse economic and regulatory developments, as well as natural disasters, in those markets.

We are subject to credit risk with respect to our interest rate swap counterparties that we use to manage the risk associated with our floating rate debt. We do not post or receive collateral with respect to our swap transactions. See Note 10 for the details of our interest rate contracts. We seek to minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings.

We have significant cash balances invested in a variety of short-term money market funds that are intended to preserve principal value and maintain a high degree of liquidity while providing current income. These investments are not insured against loss of principal and there is no guarantee that our investments in these funds will be redeemable at par value. We also have significant cash balances in bank accounts with high quality financial institutions with investment grade ratings. Interest bearing bank accounts at each U.S. banking institution are insured by the FDIC up to $250 thousand.

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Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Asset Retirement Obligations

Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control. A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated. Environmental site assessments have identified twenty-eight buildings in our Consolidated Portfolio and four buildings owned by our unconsolidated Funds which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties are demolished or undergo major renovations. As of September 30, 2019, the obligations to remove the asbestos from these properties if they were demolished or undergo major renovations have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation. As of September 30, 2019, the obligations to remove the asbestos from properties that are currently undergoing major renovations, or that we plan to renovate in the future, are not material to our consolidated financial statements.

Development and Other Contracts

In West Los Angeles, we are building a high-rise apartment building with 376 apartments. In downtown Honolulu, we are converting a 25 story, 490,000 square foot office tower into approximately 500 rental apartments. We expect the conversion to occur in phases over a number of years as the office space is vacated. As of September 30, 2019, we had an aggregate remaining contractual commitment for these and other development projects of approximately $184.3 million. As of September 30, 2019, we had an aggregate remaining contractual commitment for repositionings, capital expenditure projects and tenant improvements of approximately $24.7 million.

Guarantees

We have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for our unconsolidated Funds' debt. We have also guaranteed the related swaps. Our Funds have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2019, all of the obligations under the related debt and swap agreements have been performed in accordance with the terms of those agreements. The table below summarizes our Funds' debt as of September 30, 2019. The amounts represent 100% (not our pro-rata share) of the amounts related to our Funds:

Fund⁽¹⁾

Loan Maturity Date

Principal Balance

(In Millions)

Variable Interest Rate

Swap Fixed Interest Rate

Swap Maturity Date

Partnership X⁽²⁾⁽⁴⁾

3/1/2023

110.0

LIBOR + 1.40%

2.30%

3/1/2021

Fund X⁽³⁾⁽⁴⁾

7/1/2024

400.0

LIBOR + 1.65%

3.44%

7/1/2022

510.0

___________________________________________________


(1)	See Note 6 for more information regarding our unconsolidated Funds.


(2)	Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2019, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.4 million.

(3)

Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2019, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $20.0 million. Loan agreement includes the requirement to purchase an interest rate cap if one-month LIBOR equals or exceeds 3.56% for fourteen consecutive days after the related swap matures.


(4)	Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

17. Subsequent Events

On November 1, 2019, we closed a secured, non-recourse $400.0 million interest-only loan scheduled to mature in November 2026. The loan bears interest at LIBOR + 1.15%, which we have effectively fixed through interest rate swaps at 2.18% until July 2021, which increases to 2.31% until October 2024. Part of the proceeds were used to pay off a $360.0 million loan scheduled to mature in June 2023.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with our consolidated financial statements and related notes in Part I, Item 1 of this Report, and our Forward Looking Statements disclaimer.

Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. Through our interest in our Operating Partnership and its subsidiaries, our consolidated JVs and our unconsolidated Funds, we are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and in Honolulu, Hawaii. We focus on owning, acquiring, developing and managing a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. As of September 30, 2019, our portfolio consisted of the following (including ancillary retail space):




	Consolidated Portfolio⁽¹⁾	Total Portfolio⁽²⁾
Office
Class A Properties	64	72
Rentable Square Feet (in thousands)⁽³⁾	16,516	18,356
Leased rate	93.2%	93.1%
Occupied rate	91.0%	90.9%

Multifamily
Properties	11	11
Units	4,147	4,147
Leased rate	99.3%	99.3%
Occupied rate	96.8%	96.8%

______________________________________________________________________

(1) Our Consolidated Portfolio includes the properties in our consolidated results. Through our subsidiaries, we own 100% of these properties, except for eleven office properties totaling 2.8 million square feet and one residential property with 350 apartments, which we own through three consolidated JVs. Our Consolidated Portfolio also includes two land parcels from which we receive ground rent from ground leases to the owners of a Class A office building and a hotel.

(2) Our Total Portfolio includes our Consolidated Portfolio as well as eight properties totaling 1.8 million square feet owned by our unconsolidated Funds. See Note 6 to our consolidated financial statements in Item 1 of this Report for more information about our unconsolidated Funds.

(3) During the nine months ended September 30, 2019, we removed approximately 190,000 Rentable Square Feet of vacant space at an office building that we are converting to residential apartments.

Revenues by Segment and Location

During the nine months ended September 30, 2019, revenues from our Consolidated Portfolio were derived as follows:

____

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Acquisitions, Financings, Developments and Repositionings

Acquisitions

On June 7, 2019, we acquired The Glendon, a residential community in Westwood with 350 apartments and approximately 50,000 square feet of retail, for $365.1 million. On June 28, 2019, we completed the contribution of the property to a consolidated JV that we manage and in which we own a twenty percent capital interest. The acquisition and related working capital was funded with a $160.0 million interest-only loan, a $44.0 million capital contribution by us and a $176.0 million capital contribution by other investors. See second quarter financing transactions below for more information regarding the funding for this acquisition. See Note 3 to our consolidated financial statements in Item 1 of this Report for more information regarding this acquisition.

Financings


•	During the first quarter of 2019:


◦	In March 2019, we renewed our $400 million revolving credit facility, releasing two previously encumbered properties, lowering the borrowing rate and unused facility fees, and extending the maturity date. The renewed facility bears interest at LIBOR + 1.15% and matures on August 21, 2023.


•	During the second quarter of 2019:


◦	We closed a secured, non-recourse $255.0 million interest-only loan scheduled to mature in June 2029. The loan bears interest at LIBOR + 0.98%, which we have effectively fixed through an interest rate swap at 3.26% until June 2027. We used the proceeds to pay off a $145.0 million loan that was scheduled to mature in October 2019.


◦	We closed a secured, non-recourse $125.0 million interest-only loan scheduled to mature in June 2029. The loan bears interest at LIBOR + 0.98%, which we have effectively fixed through interest rate swaps at 2.55% until December 2020, which then increases to 3.25% until June 2027. We used the proceeds to pay off a $115.0 million loan that was scheduled to mature in December 2025.

◦

We closed a secured, non-recourse $160.0 million interest-only loan scheduled to mature in June 2029. The loan bears interest at LIBOR + 0.98%, which we have effectively fixed through an interest rate swap at 3.25% until July 2027. We used the proceeds to partially fund the acquisition of The Glendon property. This loan has been assumed by the consolidated JV to which we contributed The Glendon property.

◦

We entered into a forward interest rate swap to extend the fixed-rate period for a term loan with a principal balance of $102.4 million, scheduled to mature in April 2025, for three years. We entered into forward interest rate swaps with an initial notional amount of $75.0 million, effective as of September 2019 and scheduled to mature in August 2025, fixing one-month LIBOR at 1.97%, to hedge future term-loan refinancings.


◦	We issued 4.9 million shares of our common stock under our ATM program for net proceeds of $201.2 million. We used a portion of the funds to partially fund the acquisition of The Glendon property, and a portion of the funds to pay off a $220.0 million loan in the third quarter - see third quarter financing transactions below.


◦	Other investors in the consolidated JV to which we contributed The Glendon property contributed $176.0 million to the JV to fund the acquisition of the property, and we contributed $44.0 million to the JV.


•	During the third quarter of 2019:


◦	We paid off a $220.0 million loan scheduled to mature in December 2023 and terminated the related interest rate swaps.


◦	We closed a secured, non-recourse $415.0 million interest-only loan scheduled to mature in August 2026. The loan bears interest at LIBOR + 1.10%, which we have effectively fixed through interest rate swaps at 2.58% until April 2020, which then increases to 3.07% until August 2025. Part of the proceeds were used to pay-off a $340.0 million loan scheduled to mature in April 2022.


◦	We closed a secured, non-recourse $400.0 million interest-only loan scheduled to mature in September 2026. The loan bears interest at LIBOR + 1.15%, which we have effectively fixed through interest rate swaps at 2.44% until September 2024. The proceeds were used to pay-off a $400.0 million loan scheduled to mature in November 2022.


◦	We closed a secured, non-recourse $200.0 million interest-only loan scheduled to mature in September 2026. The loan bears interest at LIBOR + 1.20%, which we have effectively fixed through interest rate swaps at 2.77% until July 2020, which then decreases to 2.36% until October 2024. Part of the proceeds were used to pay off a $180.0 million loan scheduled to mature in July 2022.

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•	Subsequent to the third quarter of 2019


◦	We closed a secured, non-recourse $400.0 million interest-only loan scheduled to mature in November 2026. The loan bears interest at LIBOR + 1.15%, which we have effectively fixed through interest rate swaps at 2.18% until July 2021, which increases to 2.31% until October 2024. Part of the proceeds were used to pay off a $360.0 million loan scheduled to mature in June 2023.

See Notes 8 and 10 and 17 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt, derivatives, and transactions subsequent to quarter end, respectively.

Developments

•

In West Los Angeles, we are building a 34 story high-rise apartment building with 376 apartments. The tower is being built on a site that is directly adjacent to an existing office building and a 712 unit residential property, both of which we own. We expect the cost of the development to be approximately $180 million to $200 million, which does not include the cost of the land which we have owned since 1997. As part of the project, we are investing additional capital to build a one acre park on Wilshire Boulevard that will be available to the public and provide a valuable amenity to our surrounding properties and community. We expect construction to take about 3 years.


•	At our Moanalua Hillside Apartments in Honolulu, we completed the construction of an additional 491 new apartments on 28 acres which now join our existing 680 apartments. We also invested additional capital to upgrade the existing buildings, improve the parking and landscaping, build a new leasing and management office, and construct a new fitness center and two pools.

•

In downtown Honolulu, we are converting a 25 story, 490 thousand square foot office tower into approximately 500 rental apartments. We expect the conversion to occur in phases over a number of years as the office space is vacated. We currently estimate the construction costs to be approximately $80 million to $100 million, although the inherent uncertainties of development are compounded by the multi-year and phased nature of the conversion. Assuming timely city approvals, we expect the first units to be delivered in 2020. This project will help address the severe shortage of rental housing in Honolulu and revitalize the central business district.

Repositionings

We often strategically purchase properties with large vacancies or expected near-term lease roll-over and use our knowledge of the property and submarket to reposition the property for the optimal use and tenant mix. In addition, we may reposition properties already in our portfolio. The work we undertake to reposition a building typically takes months or even years, and could involve a range of improvements from a complete structural renovation to a targeted remodeling of selected spaces. During the repositioning, the affected property may display depressed rental revenue and occupancy levels that impact our results and, therefore, comparisons of our performance from period to period.

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Rental Rate Trends - Total Portfolio

Office Rental Rates

The table below presents the average annual rental rate per leased square foot and the annualized lease transaction costs per leased square foot for leases executed in our total office portfolio:




	Nine Months Ended	Year Ended December 31,
	September 30, 2019	2018	2017	2016	2015

Average straight-line rental rate⁽¹⁾⁽²⁾	$48.91	$48.77	$44.48	$43.21	$42.65
Annualized lease transaction costs⁽³⁾	$6.18	$5.80	$5.68	$5.74	$4.77

___________________________________________________

(1)

These average rental rates are not directly comparable from year to year because the averages are significantly affected from period to period by factors such as the buildings, submarkets, and types of space and terms involved in the leases executed during the respective reporting period. Because straight-line rent takes into account the full economic value of each lease, including rent concessions and escalations, we believe that it may provide a better comparison than ending cash rents, which include the impact of the annual escalations over the entire term of the lease.


(2)	Reflects the weighted average straight-line Annualized Rent.


(3)	Reflects the weighted average leasing commissions and tenant improvement allowances divided by the weighted average number of years for the leases. Excludes leases substantially negotiated by the seller in the case of acquired properties and leases for tenants relocated from space being taken out of service.

Office Rent Roll

The table below presents the rent roll for new and renewed leases per leased square foot executed in our total office portfolio:




	Nine Months Ended September 30, 2019

Rent Roll⁽¹⁾⁽²⁾	Expiring Rate⁽²⁾	New/Renewal Rate⁽²⁾	Percentage Change

Cash Rent	$42.17	$46.67	10.7%
Straight-line Rent	$38.44	$48.91	27.2%

___________________________________________________

(1)

Represents the average annual initial stabilized cash and straight-line rents per square foot on new and renewed leases signed during the quarter compared to the prior leases for the same space. Excludes Short Term Leases, leases where the prior lease was terminated more than a year before signing of the new lease, leases for tenants relocated from space being taken out of service, and leases in acquired buildings where we believe the information about the prior agreement is incomplete or where we believe base rent reflects other off-market inducements to the tenant that are not reflected in the prior lease document.


(2)	Our office rent roll can fluctuate from period to period as a result of changes in our submarkets, buildings and term of the expiring leases, making these metrics difficult to predict.

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Multifamily Rental Rates

The table below presents the average annual rental rate per leased unit for new tenants:




	Nine Months Ended	Year Ended December 31,
	September 30, 2019	2018	2017	2016	2015

Average annual rental rate - new tenants⁽¹⁾	$28,474	$27,542	$28,613	$28,435	$27,936

_____________________________________________________

(1)

These average rental rates are not directly comparable from year to year because of changes in the properties and units included. For example: (i) the average for 2018 decreased from 2017 because we added a significant number of units at our Moanalua Hillside Apartments development in Honolulu, where the rental rates are lower than the average in our portfolio, and (ii) the average for 2019 increased from 2018 because we acquired The Glendon where higher rental rates offset the effect of adding additional units at our Moanalua Hillside Apartments development.

Multifamily Rent Roll

The rent on leases subject to rent change during the nine months ended September 30, 2019 (new tenants and existing tenants undergoing annual rent review) was 1.3% higher than the prior rent on the same unit.

Occupancy Rates - Total Portfolio

The tables below present the occupancy rates for our total office portfolio and multifamily portfolio:




		December 31,
Occupancy Rates⁽¹⁾ as of:	September 30, 2019	2018	2017	2016	2015

Office portfolio	90.9%	90.3%	89.8%	90.4%	91.2%
Multifamily portfolio⁽²⁾	96.8%	97.0%	96.4%	97.9%	98.0%




	Nine Months Ended	Year Ended December 31,
Average OccupancyRates⁽¹⁾⁽³⁾:	September 30, 2019	2018	2017	2016	2015

Office portfolio	90.5%	89.4%	89.5%	90.6%	90.9%
Multifamily portfolio⁽²⁾	96.8%	96.6%	97.2%	97.6%	98.2%

___________________________________________________


(1)	Occupancy rates include the impact of property acquisitions, most of whose occupancy rates at the time of acquisition were below that of our existing portfolio.


(2)	The Occupancy Rate for our multifamily portfolio was impacted by an acquisition in 2019 and by new units at our Moanalua Hillside Apartments development in Honolulu in 2019 and 2018 - see "Acquisitions, Financings, Developments and Repositionings" above.


(3)	Average occupancy rates are calculated by averaging the occupancy rates at the end of each of the quarters in the period and at the end of the quarter immediately prior to the start of the period.

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Office Lease Expirations

As of September 30, 2019, assuming non-exercise of renewal options and early termination rights, we expect to see expiring square footage in our total office portfolio as follows:

____________________________________________________

(1) Average of the percentage of leases at September 30, 2016, 2017, 2018 with the same remaining duration as the leases for the labeled year had at September 30, 2019. Acquisitions are included in the prior year average commencing in the quarter after the acquisition.

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Results of Operations

Comparison of three months ended September 30, 2019 to three months ended September 30, 2018




	Three Months Ended September 30,				Favorable
	2019		2018		(Unfavorable)			%		Commentary

	(In thousands)
Revenues

Office rental revenue and tenant recoveries	$	175,017	$	166,680	$	8,337		5.0	%	The increase was due to (i) an increase of $7.5 million of rental revenue and tenant recoveries from properties that we owned throughout both periods, and (ii) $1.1 million of rental revenue and tenant recoveries from retail space at the residential community we acquired in June 2019, partly offset by (iii) a decrease of $0.3 million in rental revenues and tenant recoveries at an office building we are converting to a residential building in Hawaii. The increase for the properties we owned throughout both periods was due to an increase in rental revenue due to an increase in rental and occupancy rates.
Office parking and other income	$	30,883	$	30,374	$	509		1.7	%	The increase was due to (i) $0.4 million of parking income from retail space at the residential community we acquired in June 2019, (ii) an increase in parking and other income of $0.2 million from properties we owned throughout both periods, partly offset by (iii) a decrease of $0.1 million in parking and other income at an office building we are converting to a residential building in Hawaii. The increase for the properties we owned throughout both periods was due to an increase in parking income due to an increase in occupancy and rates.
Multifamily revenue	$	32,169	$	26,282	$	5,887		22.4	%	The increase was due to (i) $4.3 million of revenues from the residential community we acquired in June 2019, (ii) an increase in revenues of $1.2 million from our new apartments at our Moanalua Hillside Apartments development, and (iii) an increase in revenues of $0.4 million at our other residential properties which was primarily due to an increase in rental revenues due to an increase in rental rates.

Operating expenses

Office rental expenses	$	68,754	$	66,288	$	(2,466	)	(3.7	)%	The increase was due to (i) an increase of $2.1 million of rental expenses from properties that we owned throughout both periods, and (ii) $0.4 million of rental expenses from retail space at the residential community we acquired in June 2019. The increase for the properties we owned throughout both periods was due to an increase in personnel expenses, scheduled services expenses, property taxes and utility expenses.

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	Three Months Ended September 30,						Favorable
	2019			2018			(Unfavorable)			%		Commentary

	(In thousands)

Multifamily rental expenses	$	9,127		$	7,142		$	(1,985	)	(27.8	)%	The increase was due to (i) $1.5 million of rental expenses from the residential community we acquired in June 2019, (ii) an increase in rental expenses of $0.2 million from our new apartments at our Moanalua Hillside Apartments development, and (iii) an increase of $0.2 million for our other residential properties, which was primarily due to an increase in scheduled services expenses and property taxes.
General and administrative expenses	$	9,218		$	9,440		$	222		2.4	%	The decrease was primarily due to a decrease in personnel expenses.
Depreciation and amortization	$	90,279		$	74,067		$	(16,212	)	(21.9	)%	The increase was due to (i) an increase in depreciation and amortization of $9.3 million from the accelerated depreciation of certain office improvements in a building we are converting from office to residential in Hawaii,(ii) $2.8 million of depreciation and amortization from the residential community we acquired in June 2019, (iii) an increase in depreciation and amortization of $0.6 million from new apartments at our Moanalua Hillside Apartments development, and (iv) an increase of $3.5 million for our other properties, which reflects activity at our repositioning properties and an increase in investment in real estate balances.

Non-Operating Income and Expenses

Other income	$	2,952		$	2,951		$	1		—	%	Other income was relatively unchanged from the comparable period.
Other expenses	$	(1,656	)	$	(1,561	)	$	(95	)	(6.1	)%	The increase was primarily due to lower acquisition expenses in the comparable period.
Income, including depreciation, from unconsolidated Funds	$	1,831		$	1,348		$	483		35.8	%	The increase was primarily due to an increase in net income from our unconsolidated Funds, which was primarily due to an increase in revenues because of increases in occupancy and rental rates.
Interest expense	$	(40,397	)	$	(33,721	)	$	(6,676	)	(19.8	)%	The increase was primarily due to loan costs incurred in connection with our debt refinancing activities during the current period.

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Results of Operations

Comparison of nine months ended September 30, 2019 to nine months ended September 30, 2018




	Nine Months Ended September 30,				Favorable
	2019		2018		(Unfavorable)			%		Commentary

	(In thousands)
Revenues

Office rental revenue and tenant recoveries	$	513,926	$	490,319	$	23,607		4.8	%	The increase was due to (i) an increase of $22.2 million of rental revenue and tenant recoveries from properties that we owned throughout both periods, and (ii) $1.4 million of rental revenue and tenant recoveries from retail space at the residential community we acquired in June 2019. The increase for the properties we owned throughout both periods was primarily due to an increase in rental revenue due to an increase in rental and occupancy rates.
Office parking and other income	$	91,453	$	87,829	$	3,624		4.1	%	The increase was due to (i) an increase in parking and other income of $3.3 million from properties we owned throughout both periods, and (ii) $0.4 million of parking income from retail space at the residential community we acquired in June 2019, partly offset by (iii) a decrease of $0.1 million in parking and other income at an office building we are converting to a residential building in Hawaii. The increase for the properties we owned throughout both periods was due to an increase in parking income due to an increase in occupancy and rates.
Multifamily revenue	$	87,410	$	76,904	$	10,506		13.7	%	The increase was due to (i) $5.4 million of revenues from the residential community we acquired in June 2019, (ii) an increase in revenues of $3.5 million from our new apartments at our Moanalua Hillside Apartments development, and (iii) an increase in revenues of $1.7 million at our other residential properties, which was primarily due to an increase in rental revenues due to an increase in rental rates.

Operating expenses

Office rental expenses	$	196,511	$	188,462	$	(8,049	)	(4.3	)%	The increase was due to (i) an increase of $7.5 million of rental expenses from properties that we owned throughout both periods, (ii) $0.5 million of rental expenses from retail space at the residential community we acquired in June 2019, and (iii) an increase of $0.1 million in rental expenses at an office building we are converting to a residential building in Hawaii. The increase in rental expenses from properties that we owned throughout both periods was due to an increase in property taxes, utility expenses, scheduled services expenses, repairs and maintenance expenses and personnel expenses.

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	Nine Months Ended September 30,						Favorable
	2019			2018			(Unfavorable)			%		Commentary

	(In thousands)

Multifamily rental expenses	$	24,394		$	20,748		$	(3,646	)	(17.6	)%	The increase was due to (i) $1.9 million of rental expenses from the residential community we acquired in June 2019, (ii) an increase in rental expenses of $0.8 million from our new apartments at our Moanalua Hillside Apartments development, and (iii) an increase of $1.0 million at our other residential properties, which was primarily due to an increase in property taxes, scheduled services expenses, personnel expenses and utility expenses.
General and administrative expenses	$	28,209		$	28,444		$	235		0.8	%	The decrease was primarily due to a decrease in personnel expenses.
Depreciation and amortization	$	248,876		$	219,944		$	(28,932	)	(13.2	)%	The increase was due to (i) an increase in depreciation and amortization of $9.3 million from an office building we are converting to a residential building in Hawaii, due to accelerated depreciation of the building, (ii) $3.7 million of depreciation and amortization from the residential community that we acquired in June 2019, (iii) an increase in depreciation and amortization of $1.7 million from new apartments at our Moanalua Hillside Apartments development, and (iv) an increase of $14.2 million at our other properties, which reflects activity at our repositioning properties and an increase in investment in real estate balances.

Non-Operating Income and Expenses

Other income	$	8,742		$	8,373		$	369		4.4	%	The increase was primarily due to an increase in interest income due to higher money market balances and interest rates.
Other expenses	$	(5,308	)	$	(5,380	)	$	72		1.3	%	The decrease was primarily due to higher acquisition expenses in the comparable period.
Income, including depreciation, from unconsolidated Funds	$	5,589		$	4,522		$	1,067		23.6	%	The increase was primarily due to an increase in net income from our unconsolidated Funds, which was primarily due to an increase in revenues because of increases in occupancy and rental rates.
Interest expense	$	(107,753	)	$	(99,889	)	$	(7,864	)	(7.9	)%	The increase was primarily due to loan costs incurred in connection with our debt refinancing activities during the current period.

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Non-GAAP Supplemental Financial Measure: FFO

Usefulness to Investors

We report FFO because it is a widely reported measure of the performance of equity REITs, and is also used by some investors to identify trends in occupancy rates, rental rates and operating costs from year to year, and to compare our performance with other REITs. FFO is a non-GAAP financial measure for which we believe that net income is the most directly comparable GAAP financial measure. FFO has limitations as a measure of our performance because it excludes depreciation and amortization of real estate, and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations. FFO should be considered only as a supplement to net income as a measure of our performance and should not be used as a measure of our liquidity or cash flow, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends. Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to the FFO of other REITs. See "Results of Operations" above for a discussion of the items that impacted our net income.

Comparison of three months ended September 30, 2019 to three months ended September 30, 2018

For the three months ended September 30, 2019, FFO increased by $3.7 million, or 3.7%, to $103.9 million, compared to $100.1 million for the three months ended September 30, 2018. The increase was primarily due to (i) an increase in operating income from our office portfolio due to an increase in occupancy and rental rates, and operating income from retail space at The Glendon residential community we acquired in June 2019, (ii) an increase in operating income from our residential portfolio due to leasing of new units at our Moanalua Hillside Apartments development and operating income from apartments at The Glendon residential community, which was partially offset by (iii) loan costs incurred in connection with the new loans we closed.

Comparison of nine months ended September 30, 2019 to nine months ended September 30, 2018

For the nine months ended September 30, 2019, FFO increased by $17.9 million, or 6.0%, to $314.8 million, compared to $296.9 million for the nine months ended September 30, 2018. The increase was primarily due to the same reasons listed above.

Reconciliation to GAAP

The table below reconciles our FFO (the FFO attributable to our common stockholders and noncontrolling interests in our Operating Partnership - which includes our share of our consolidated JVs and our unconsolidated Funds FFO) to net income attributable to common stockholders computed in accordance with GAAP:




	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018

Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451
Depreciation and amortization of real estate assets	90,279			74,067			248,876			219,944
Net income attributable to noncontrolling interests	933			4,855			10,914			14,629
Adjustments attributable to unconsolidated Funds⁽¹⁾	4,335			4,233			13,185			12,382
Adjustments attributable to consolidated JVs⁽²⁾	(14,147		)	(13,572		)	(43,343		)	(40,484		)
FFO	$	103,888		$	100,144		$	314,787		$	296,922

_______________________________________________


(1)	Adjusts for our share of our unconsolidated Funds depreciation and amortization of real estate assets.


(2)	Adjusts for the net income and depreciation and amortization of real estate assets that is attributable to the noncontrolling interests in our consolidated JVs.

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Non-GAAP Supplemental Financial Measure: Same Property NOI

Usefulness to Investors

We report Same Property NOI to facilitate a comparison of our operations between reported periods. Many investors use Same Property NOI to evaluate our operating performance and to compare our operating performance with other REITs, because it can reduce the impact of investing transactions on operating trends. Same Property NOI is a non-GAAP financial measure for which we believe that net income is the most directly comparable GAAP financial measure. We report Same Property NOI because it is a widely recognized measure of the performance of equity REITs, and is used by some investors to identify trends in occupancy rates, rental rates and operating costs and to compare our operating performance with that of other REITs. Same Property NOI has limitations as a measure of our performance because it excludes depreciation and amortization expense, and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures, tenant improvements and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations. Other REITs may not calculate Same Property NOI in the same manner. As a result, our Same Property NOI may not be comparable to the Same Property NOI of other REITs. Same Property NOI should be considered only as a supplement to net income as a measure of our performance and should not be used as a measure of our liquidity or cash flow, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends.

Comparison of three months ended September 30, 2019 to three months ended September 30, 2018

As of September 30, 2019, our Same Properties included 60 office properties, aggregating 15.5 million Rentable Square Feet, and 9 multifamily properties with an aggregate 2,640 units. The amounts presented include 100% (not our pro-rata share).




	Three Months Ended September 30,						Favorable
	2019			2018			(Unfavorable)			%		Commentary
	(In thousands)

Office revenues	$	193,131		$	183,924		$	9,207		5.0	%	The increase was primarily due to an increase in rental revenues due to an increase in rental and occupancy rates.
Office expenses	(63,109		)	(61,076		)	(2,033		)	(3.3	)%	The increase was primarily due to an increase in personnel expenses, scheduled services expenses, property taxes and utility expenses.
Office NOI	130,022			122,848			7,174			5.8	%

Multifamily revenues	21,506			21,288			218			1.0	%	The increase was primarily due to an increase in rental revenues due to an increase in rental rates.
Multifamily expenses	(5,384		)	(5,330		)	(54		)	(1.0	)%	The increase was primarily due to an increase in scheduled services expenses, personnel expenses and property taxes.
Multifamily NOI	16,122			15,958			164			1.0	%

Total NOI	$	146,144		$	138,806		$	7,338		5.3	%

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Reconciliation to GAAP

The table below presents a reconciliation of our Same Property NOI to net income attributable to common stockholders:




	Three Months Ended September 30,
(In thousands)	2019			2018

Same Property NOI	$	146,144		$	138,806
Non-comparable office revenues	12,769			13,130
Non-comparable office expenses	(5,645		)	(5,212		)
Non-comparable multifamily revenues	10,663			4,994
Non-comparable multifamily expenses	(3,743		)	(1,812		)
NOI	160,188			149,906
General and administrative expenses	(9,218		)	(9,440		)
Depreciation and amortization	(90,279		)	(74,067		)
Operating income	60,691			66,399
Other income	2,952			2,951
Other expenses	(1,656		)	(1,561		)
Income, including depreciation, from unconsolidated Funds	1,831			1,348
Interest expense	(40,397		)	(33,721		)
Net income	23,421			35,416
Less: Net income attributable to noncontrolling interests	(933		)	(4,855		)
Net income attributable to common stockholders	$	22,488		$	30,561

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Comparison of nine months ended September 30, 2019 to nine months ended September 30, 2018




	Nine Months Ended September 30,						Favorable
	2019			2018			(Unfavorable)			%		Commentary
	(In thousands)

Office revenues	$	568,992		$	539,751		$	29,241		5.4	%	The increase was primarily due to (i) an increase in rental revenues due to an increase in rental and occupancy rates, (ii) an increase in tenant recoveries due to an increase in recoverable operating costs and (iii) an increase in parking and other income.
Office expenses	(180,554		)	(173,394		)	(7,160		)	(4.1	)%	The increase was primarily due to an increase in utility expenses, property taxes, scheduled services expenses, repairs and maintenance expenses and personnel expenses.
Office NOI	388,438			366,357			22,081			6.0	%

Multifamily revenues	64,442			63,303			1,139			1.8	%	The increase was primarily due to an increase in rental revenues due to an increase in rental rates.
Multifamily expenses	(16,337		)	(16,001		)	(336		)	(2.1	)%	The increase was primarily due to an increase in personnel expenses, utility expenses, repairs and maintenance expenses and scheduled services expenses.
Multifamily NOI	48,105			47,302			803			1.7	%

Total NOI	$	436,543		$	413,659		$	22,884		5.5	%

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Reconciliation to GAAP

The table below presents a reconciliation of our Same Property NOI to net income attributable to common stockholders:




	Nine Months Ended September 30,
(In thousands)	2019			2018
Same Property NOI	$	436,543		$	413,659
Non-comparable office revenues	36,387			38,397
Non-comparable office expenses	(15,957		)	(15,068		)
Non-comparable multifamily revenues	22,968			13,601
Non-comparable multifamily expenses	(8,057		)	(4,747		)
NOI	471,884			445,842
General and administrative expenses	(28,209		)	(28,444		)
Depreciation and amortization	(248,876		)	(219,944		)
Operating income	194,799			197,454
Other income	8,742			8,373
Other expenses	(5,308		)	(5,380		)
Income, including depreciation, from unconsolidated Funds	5,589			4,522
Interest expense	(107,753		)	(99,889		)
Net income	96,069			105,080
Less: Net income attributable to noncontrolling interests	(10,914		)	(14,629		)
Net income attributable to common stockholders	$	85,155		$	90,451

Liquidity and Capital Resources

Short-term liquidity

Excluding acquisitions, development projects and debt refinancings, we expect to meet our short-term liquidity requirements through cash on hand, cash generated by operations and our revolving credit facility. See Note 8 to our consolidated financial statements in Item 1 of this Report for more information regarding our revolving credit facility.

Long-term liquidity

Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, development projects and debt refinancings. We do not expect to have sufficient funds on hand to cover these long-term cash requirements due to the requirement to distribute a substantial majority of our income on an annual basis imposed by REIT federal tax rules. We plan to meet our long-term liquidity needs through long-term secured non-recourse indebtedness, the issuance of equity securities, including common stock and OP Units, as well as property dispositions and JV transactions. We have an ATM program which would allow us, subject to market conditions, to sell up to an additional $198 million of shares of common stock as of the date of this Report.

To mitigate the impact of changing interest rates on our cash flows from operations, we generally enter into interest rate swap agreements with respect to our loans with floating interest rates. These swap agreements generally expire between one to two years before the maturity date of the related loan, during which time we can refinance the loan without any interest penalty. See Notes 8 and 10 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivative contracts, respectively.

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Contractual Obligations

See Note 4 to our consolidated financial statements in Item 1 of this Report for information regarding our minimum future ground lease payments, Note 8 for information regarding our minimum future principal payments due on our secured notes payable and revolving credit facility, as well as the interest rates that determine our future periodic interest payments, and Note 16 for information regarding our contractual obligations related to our developments, capital expenditure projects and repositionings.

Off-Balance Sheet Arrangements

Unconsolidated Funds Debt

Our unconsolidated Funds have their own secured non-recourse debt, and we have made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve-outs related to those loans. We have also guaranteed the related swaps. Our Funds have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2019, all of the obligations under the respective loans and swap agreements have been performed in accordance with the terms of those agreements. See Note 16 to our consolidated financial statements in Item 1 of this Report.

Cash Flows

Comparison of nine months ended September 30, 2019 to nine months ended September 30, 2018




	Nine Months Ended September 30,						Increase
	2019			2018			(Decrease)		%
	(In thousands)

Net cash provided by operating activities⁽¹⁾	$	358,968		$	331,843		$	27,125	8.2	%
Net cash used in investing activities⁽²⁾	$	(539,067	)	$	(167,983	)	$	371,084	220.9	%
Net cash provided by (used in) financing activities⁽³⁾	$	215,382		$	(168,143	)	$	383,525	228.1	%

___________________________________________________

(1)

Our cash flows from operating activities are primarily dependent upon the occupancy and rental rates of our portfolio, the collectibility of rent and recoveries from our tenants, and the level of our operating expenses and general and administrative expenses, and interest expense. The increase in cash provided by operating activities was primarily due to: (i) an increase in operating income from our office portfolio due to an increase in occupancy and rental rates, and operating income from retail space at The Glendon residential community we acquired in June 2019, and (ii) an increase in operating income from our residential portfolio due to leasing of new units at our Moanalua Hillside Apartments development and operating income from apartments at The Glendon residential community.

(2)

Our cash flows from investing activities is generally used to fund property acquisitions, developments and redevelopment projects, and Recurring and non-Recurring Capital Expenditures. The increase in cash used in investing activities was primarily due to $365.9 million paid for The Glendon residential property, net of prorations, which we acquired in June 2019, and an increase of $12.2 million in capital expenditures for improvements to real estate.

(3)

Our cash flows from financing activities are generally impacted by our borrowings and capital activities, as well as dividends and distributions paid to common stockholders and noncontrolling interests, respectively. The cash provided by financing activities was primarily due to: (i) net proceeds of $201.0 million from the issuance of common stock, (ii) contributions from non-controlling interests of $163.6 million, and (iii) an increase of $47.6 million in net borrowings.

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Critical Accounting Policies

We adopted an ASU during the the first quarter of 2019 that changed our accounting policy for leases - see Note 2 to our consolidated financial statements in Item 1 of this Report for a discussion of new accounting pronouncements. We have not made any other changes during the period covered by this Report to our critical accounting policies disclosed in our 2018 Annual Report on Form 10-K. Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with US GAAP, and which requires us to make estimates of certain items, which affect the reported amounts of our assets, liabilities, revenues and expenses. While we believe that our estimates are based upon reasonable assumptions and judgments at the time that they are made, some of our estimates could prove to be incorrect, and those differences could be material. Some of our estimates are subject to adjustment as we believe appropriate, based on revised estimates, and reconciliation to actual results when available.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We use derivative instruments to hedge interest rate risk related to our floating rate borrowings. However, our use of these instruments exposes us to credit risk from the potential inability of our counterparties to perform under the terms of those agreements. We attempt to minimize this credit risk by contracting with a variety of high-quality financial counterparties. See Notes 8 and 10 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivatives. As of September 30, 2019, we have no outstanding floating rate debt that is unhedged.

In July 2017, the Financial Conduct Authority (the authority that regulates LIBOR) announced it intends to stop compelling banks to submit rates for the calculation of LIBOR after 2021. The Alternative Reference Rates Committee ("ARRC") has proposed that the Secured Overnight Financing Rate ("SOFR") is the rate that represents best practice as the alternative to USD-LIBOR for use in derivatives and other financial contracts that are currently indexed to USD-LIBOR. ARRC has proposed a paced market transition plan to SOFR from USD-LIBOR and organizations are currently working on industry wide and company specific transition plans as it relates to derivatives and cash markets exposed to USD-LIBOR. Our floating rate borrowings and derivative instruments are indexed to USD-LIBOR and we are monitoring this activity and evaluating the related risks.

Item 4. Controls and Procedures

As of September 30, 2019, the end of the period covered by this Report, we carried out an evaluation, under the supervision and with the participation of management, including our CEO and CFO, regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this Report. Based on the foregoing, our CEO and CFO concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports filed or submitted under the Exchange Act (i) is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our CEO and our CFO, as appropriate, to allow for timely decisions regarding required disclosure.

There have not been any changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2019, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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.

Item 1A. Risk Factors

Except for any additional relevant information disclosed in our public reports during 2019, we are not aware of any other material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits



Exhibit Number		Description

31.1		Certificate of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certificate of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certificate of CEO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*		Certificate of CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		Inline XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.
101.SCH		Inline XBRL Taxonomy Extension Schema Document.
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

________________________________________________

* In accordance with SEC Release No. 33-8212, these exhibits are being furnished, and are not being filed as part of this Report on Form 10-Q or as a separate disclosure document, and are not being incorporated by reference into any Securities Act registration statement.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



		DOUGLAS EMMETT, INC.


Date:	November 8, 2019	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO


Date:	November 8, 2019	By:	/s/ PETER D. SEYMOUR
			Peter D. Seymour
			CFO

Exhibit

EXHIBIT 31.1

CEO Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jordan L. Kaplan, certify that:


1.	I have reviewed this Quarterly Report on Form 10-Q of Douglas Emmett, Inc.;


2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.	Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date:	November 8, 2019	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO

Exhibit

EXHIBIT 31.2

CFO Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Peter D. Seymour, certify that:


1.	I have reviewed this Quarterly Report on Form 10-Q of Douglas Emmett, Inc.;


2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):


a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.



Date:	November 8, 2019	By:	/s/ PETER D. SEYMOUR
			Peter D. Seymour
			CFO

Exhibit

EXHIBIT 32.1

OFFICERS’ CERTIFICATIONS

CEO Certification

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Douglas Emmett, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that:


(i)	the accompanying quarterly report on Form 10-Q of the Company for the period ended September 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and


(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Date:	November 8, 2019	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

Exhibit

EXHIBIT 32.2

OFFICERS’ CERTIFICATIONS

CFO Certification


(i)	the accompanying quarterly report on Form 10-Q of the Company for the period ended September 30, 2019 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and


(ii)	the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.



Date:	November 8, 2019	By:	/s/ PETER D. SEYMOUR
			Peter D. Seymour
			CFO

Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Secured Notes Payable and Revolving Credit Facility (Details)	1 Months Ended	9 Months Ended
	Mar. 31, 2019 USD ($) property	Sep. 30, 2019 USD ($) collateral_pool property	Dec. 01, 2020	Jul. 01, 2020	Apr. 01, 2020	Mar. 02, 2020	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Principal Balance		$ 4,213,446,000					$ 4,163,982,000
Unamortized loan premium, net		3,832,000					3,986,000
Unamortized deferred loan costs, net		(40,311,000)					(33,938,000)
Total Consolidated Debt, Net		$ 4,176,967,000					4,134,030,000
Minimum number of separate collateral pools used to secure loans \| collateral_pool		1
Minimum number of properties in collateral pools \| property		1
Number of previously encumbered properties released \| property	2
Secured Debt \| LIBOR
Debt Instrument [Line Items]
Loan agreement LIBOR floor		0.00%
Secured Debt \| Term Loan at 4.55% Jun 01 2038
Debt Instrument [Line Items]
Principal amortization period (in years)		30 years
Wholly Owned Subsidiaries
Debt Instrument [Line Items]
Principal Balance		$ 3,073,446,000					3,183,982,000
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan with Maturity Oct 01 2019
Debt Instrument [Line Items]
Principal Balance							145,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan with Maturity Dec 01 2025
Debt Instrument [Line Items]
Principal Balance							115,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.62% Dec 23 2023
Debt Instrument [Line Items]
Principal Balance							220,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.77% Apr 15 2022
Debt Instrument [Line Items]
Principal Balance							340,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.64% Nov 01 2022
Debt Instrument [Line Items]
Principal Balance							400,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.06% Jul 27 2022
Debt Instrument [Line Items]
Principal Balance							180,000,000
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.57% Jun 23 2023
Debt Instrument [Line Items]
Maturity Date		Jun. 23, 2023
Principal Balance		$ 360,000,000					360,000,000
Variable Interest Rate		LIBOR + 1.55%
Fixed Interest Rate		2.57%
Swap Maturity Date		Jul. 01, 2021
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.57% Jun 23 2023 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.55%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.46% Jan 01 2024
Debt Instrument [Line Items]
Maturity Date		Jan. 01, 2024
Principal Balance		$ 300,000,000					300,000,000
Variable Interest Rate		LIBOR + 1.55%
Fixed Interest Rate		3.46%
Swap Maturity Date		Jan. 01, 2022
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.46% Jan 01 2024 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.55%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.84% Mar 03 2025
Debt Instrument [Line Items]
Maturity Date		Mar. 03, 2025
Principal Balance		$ 335,000,000					335,000,000
Variable Interest Rate		LIBOR + 1.30%
Fixed Interest Rate		3.84%
Swap Maturity Date		Mar. 01, 2023
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 3.84% Mar 03 2025 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.30%
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.84% Apr 01 2025
Debt Instrument [Line Items]
Maturity Date		Apr. 01, 2025
Principal Balance		$ 102,400,000					102,400,000
Variable Interest Rate		LIBOR + 1.25%
Fixed Interest Rate		2.84%
Swap Maturity Date		Mar. 01, 2023
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.84% Apr 01 2025 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.25%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.58% Aug 15 2026
Debt Instrument [Line Items]
Maturity Date		Aug. 15, 2026
Principal Balance		$ 415,000,000					0
Variable Interest Rate		LIBOR + 1.10%
Fixed Interest Rate		2.58%
Swap Maturity Date		Aug. 01, 2025
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.58% Aug 15 2026 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.10%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.44% Sep 19 2026
Debt Instrument [Line Items]
Maturity Date		Sep. 19, 2026
Principal Balance		$ 400,000,000					0
Variable Interest Rate		LIBOR + 1.15%
Fixed Interest Rate		2.44%
Swap Maturity Date		Sep. 01, 2024
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.44% Sep 19 2026 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.15%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.77% Sep 26 2026
Debt Instrument [Line Items]
Maturity Date		Sep. 26, 2026
Principal Balance		$ 200,000,000					0
Variable Interest Rate		LIBOR + 1.20%
Fixed Interest Rate		2.77%
Swap Maturity Date		Oct. 01, 2024
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.77% Sep 26 2026 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.20%
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 3.16% Jun 01 2027
Debt Instrument [Line Items]
Maturity Date		Jun. 01, 2027
Principal Balance		$ 550,000,000					550,000,000
Variable Interest Rate		LIBOR + 1.37%
Fixed Interest Rate		3.16%
Swap Maturity Date		Jun. 01, 2022
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 3.16% Jun 01 2027 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.37%
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 3.26% Jun 01 2029
Debt Instrument [Line Items]
Maturity Date		Jun. 01, 2029
Principal Balance		$ 255,000,000					0
Variable Interest Rate		LIBOR + 0.98%
Fixed Interest Rate		3.26%
Swap Maturity Date		Jun. 01, 2027
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 3.26% Jun 01 2029 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		0.98%
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.55% Jun 01 2029
Debt Instrument [Line Items]
Maturity Date		Jun. 01, 2029
Principal Balance		$ 125,000,000					0
Variable Interest Rate		LIBOR + 0.98%
Fixed Interest Rate		2.55%
Swap Maturity Date		Jun. 01, 2027
Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.55% Jun 01 2029 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		0.98%
Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 4.55% Jun 01 2038
Debt Instrument [Line Items]
Maturity Date		Jun. 01, 2038
Principal Balance		$ 31,046,000					31,582,000
Fixed Interest Rate		4.55%
Wholly Owned Subsidiaries \| Line of Credit \| Revolving Credit Facility with Maturity Aug 21 2023
Debt Instrument [Line Items]
Maturity Date		Aug. 21, 2023
Principal Balance		$ 0					105,000,000
Variable Interest Rate		LIBOR + 1.15%
Maximum borrowing capacity	$ 400,000,000.0
Loan agreement LIBOR floor		0.00%
Wholly Owned Subsidiaries \| Line of Credit \| Revolving Credit Facility with Maturity Aug 21 2023 \| Minimum
Debt Instrument [Line Items]
Unused commitment fees (as a percent)		0.10%
Wholly Owned Subsidiaries \| Line of Credit \| Revolving Credit Facility with Maturity Aug 21 2023 \| Maximum
Debt Instrument [Line Items]
Unused commitment fees (as a percent)		0.15%
Wholly Owned Subsidiaries \| Line of Credit \| Revolving Credit Facility with Maturity Aug 21 2023 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.15%
Consolidated JV \| Secured Debt \| Term Loan at 2.37% Feb 28 2023
Debt Instrument [Line Items]
Maturity Date		Feb. 28, 2023
Principal Balance		$ 580,000,000					580,000,000
Variable Interest Rate		LIBOR + 1.40%
Fixed Interest Rate		2.37%
Swap Maturity Date		Mar. 01, 2021
Consolidated JV \| Secured Debt \| Term Loan at 2.37% Feb 28 2023 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.40%
Consolidated JV \| Secured Debt \| Term Loan at 3.47% Dec 19 2024
Debt Instrument [Line Items]
Maturity Date		Dec. 19, 2024
Principal Balance		$ 400,000,000					400,000,000
Variable Interest Rate		LIBOR + 1.30%
Fixed Interest Rate		3.47%
Swap Maturity Date		Jan. 01, 2023
Consolidated JV \| Secured Debt \| Term Loan at 3.47% Dec 19 2024 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		1.30%
Consolidated JV \| Secured Debt \| Term Loan at 3.25% Jun 01 2029
Debt Instrument [Line Items]
Maturity Date		Jun. 01, 2029
Principal Balance		$ 160,000,000					$ 0
Variable Interest Rate		LIBOR + 0.98%
Fixed Interest Rate		3.25%
Swap Maturity Date		Jul. 01, 2027
Consolidated JV \| Secured Debt \| Term Loan at 3.25% Jun 01 2029 \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)		0.98%
Forecast \| Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.84% Apr 01 2025
Debt Instrument [Line Items]
Fixed Interest Rate						2.76%
Forecast \| Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.58% Aug 15 2026
Debt Instrument [Line Items]
Fixed Interest Rate					3.07%
Forecast \| Wholly Owned Subsidiaries \| Secured Debt \| Term Loan at 2.77% Sep 26 2026
Debt Instrument [Line Items]
Fixed Interest Rate				2.36%
Forecast \| Wholly Owned Subsidiaries \| Secured Debt \| Fannie Mae Loan at 2.55% Jun 01 2029
Debt Instrument [Line Items]
Fixed Interest Rate			3.25%

Investments in Unconsolidated Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Real Estate Investments, Net [Abstract]
Operating distributions received	$ 5,589	$ 4,522
Capital distributions received	5,851	5,866
Total distributions received	$ 11,440	$ 10,388

Interest Payable, Accounts Payable and Deferred Revenue - Summary of Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts Payable and Accrued Liabilities [Abstract]
Interest payable	$ 9,537	$ 10,657
Accounts payable and accrued liabilities	79,749	75,111
Deferred revenue	45,658	44,386
Total interest payable, accounts payable and deferred revenue	$ 134,944	$ 130,154

Segment Reporting - Reconciliation of Segment Profit to Net Income Attributable to Common Stockholders (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting [Abstract]
Total profit from all segments	$ 160,188	$ 149,906	$ 471,884	$ 445,842
General and administrative expenses	(9,218)	(9,440)	(28,209)	(28,444)
Depreciation and amortization	(90,279)	(74,067)	(248,876)	(219,944)
Other income	2,952	2,951	8,742	8,373
Other expenses	(1,656)	(1,561)	(5,308)	(5,380)
Income, including depreciation, from unconsolidated Funds	1,831	1,348	5,589	4,522
Interest expense	(40,397)	(33,721)	(107,753)	(99,889)
Net income	23,421	35,416	96,069	105,080
Less: Net income attributable to noncontrolling interests	(933)	(4,855)	(10,914)	(14,629)
Net income attributable to common stockholders	$ 22,488	$ 30,561	$ 85,155	$ 90,451

Subsequent Events - Narrative (Details) - USD ($)		9 Months Ended		20 Months Ended	40 Months Ended
Subsequent Events - Narrative (Details) - USD ($)	Nov. 01, 2019	Sep. 30, 2019	Sep. 30, 2018	Jul. 01, 2021	Oct. 31, 2024
Subsequent Event [Line Items]
Repayments of borrowings		$ 1,733,092,000	$ 595,151,000
Subsequent Event
Subsequent Event [Line Items]
Repayments of borrowings	$ 360,000,000.0
Subsequent Event \| Secured Debt \| Non-recourse Term Loan at 2.18% Nov 2026
Subsequent Event [Line Items]
Debt instrument face amount	$ 400,000,000.0
Subsequent Event \| Secured Debt \| Non-recourse Term Loan at 2.18% Nov 2026 \| LIBOR
Subsequent Event [Line Items]
Basis spread on rate (percent)	1.15%
Forecast \| Non-recourse Term Loan at 2.18% Nov 2026
Subsequent Event [Line Items]
Effectively fixed rate (percent)				2.18%	2.31%

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Revenues	$ 238,069	$ 223,336	$ 692,789	$ 655,052
Operating Expenses
General and administrative expenses	9,218	9,440	28,209	28,444
Depreciation and amortization	90,279	74,067	248,876	219,944
Total operating expenses	177,378	156,937	497,990	457,598
Operating income	60,691	66,399	194,799	197,454
Other income	2,952	2,951	8,742	8,373
Other expenses	(1,656)	(1,561)	(5,308)	(5,380)
Income, including depreciation, from unconsolidated Funds	1,831	1,348	5,589	4,522
Interest expense	(40,397)	(33,721)	(107,753)	(99,889)
Net income	23,421	35,416	96,069	105,080
Less: Net income attributable to noncontrolling interests	(933)	(4,855)	(10,914)	(14,629)
Net income attributable to common stockholders	$ 22,488	$ 30,561	$ 85,155	$ 90,451
Net income per common share – basic (usd per share)	$ 0.13	$ 0.18	$ 0.49	$ 0.53
Net income per common share – diluted (usd per share)	$ 0.13	$ 0.18	$ 0.49	$ 0.53
Office rental
Revenues
Revenues	$ 205,900	$ 197,054	$ 605,379	$ 578,148
Operating Expenses
Operating expenses	68,754	66,288	196,511	188,462
Office rental \| Rental revenues and tenant recoveries
Revenues
Revenues	175,017	166,680	513,926	490,319
Office rental \| Parking and other income
Revenues
Revenues	30,883	30,374	91,453	87,829
Multifamily rental
Revenues
Revenues	32,169	26,282	87,410	76,904
Operating Expenses
Operating expenses	9,127	7,142	24,394	20,748
Multifamily rental \| Rental revenues
Revenues
Revenues	29,854	24,241	81,055	70,957
Multifamily rental \| Parking and other income
Revenues
Revenues	$ 2,315	$ 2,041	$ 6,355	$ 5,947

Interest Payable, Accounts Payable and Deferred Revenue

9 Months Ended

Sep. 30, 2019

Accounts Payable and Accrued Liabilities [Abstract]

Interest Payable, Accounts Payable and Deferred Revenue



(In thousands)	September 30, 2019		December 31, 2018

Interest payable	$	9,537	$	10,657
Accounts payable and accrued liabilities	79,749		75,111
Deferred revenue	45,658		44,386
Total interest payable, accounts payable and deferred revenue	$	134,944	$	130,154

Overview

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview

Organization and Business Description



	Consolidated Portfolio	Total Portfolio
Office
Wholly-owned properties	53	53
Consolidated JV properties	11	11
Unconsolidated Fund properties	—	8
	64	72

Multifamily
Wholly-owned properties	10	10
Consolidated JV properties	1	1
	11	11

Total	75	83

Basis of Presentation

Label	Element	Value
Accounting Standards Update 2017-12 [Member] \| Accumulated Distributions in Excess of Net Income [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (211,000)
Accounting Standards Update 2017-12 [Member] \| AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 211,000

Acquired Lease Intangibles

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles



(In thousands)	September 30, 2019			December 31, 2018

Above-market tenant leases	$	3,745		$	5,595
Above-market tenant leases - accumulated amortization	(1,800		)	(3,289		)
Above-market ground lease where we are the lessor	1,152			1,152
Above-market ground lease - accumulated amortization	(220		)	(207		)
Acquired lease intangible assets, net	$	2,877		$	3,251

Below-market tenant leases	$	86,159		$	112,175
Below-market tenant leases - accumulated accretion	(47,775		)	(63,013		)
Above-market ground lease where we are the tenant⁽¹⁾	—			4,017
Above-market ground lease - accumulated accretion⁽¹⁾	—			(610		)
Acquired lease intangible liabilities, net	$	38,384		$	52,569

______________________________________________

(1) Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value for the carrying value of the above-market ground lease - see Notes 2 and 4.

Impact on the Consolidated Statements of Operations

The table below summarizes the net amortization/accretion related to our above- and below-market leases:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018

Net accretion of above- and below-market tenant lease assets and liabilities⁽¹⁾	$	4,009		$	4,940		$	12,533		$	17,218
Amortization of an above-market ground lease asset⁽²⁾	(6		)	(5		)	(14		)	(13		)
Accretion of an above-market ground lease liability⁽³⁾	—			13			—			38
Total	$	4,003		$	4,948		$	12,519		$	17,243

______________________________________________


(1)	Recorded as a net increase to office and multifamily rental revenues.


(2)	Recorded as a decrease to office parking and other income.

(3)

Recorded as a decrease to office expense. Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value with the carrying value of the above-market ground lease - see Notes 2 and 4.

Future Minimum Lease Rental Receipts (Tables)

9 Months Ended

Sep. 30, 2019

Lessor Disclosure [Abstract]

Schedule of Future Minimum Base Rentals on Non-Cancelable Office and Ground Operating Leases

The table below presents the future minimum base rentals on our non-cancelable office tenant and ground leases at September 30, 2019:



Twelve months ending September 30:	(In thousands)

2020	$	603,132
2021	529,062
2022	442,362
2023	357,131
2024	273,685
Thereafter	673,833
Total future minimum base rentals⁽¹⁾	$	2,879,205

_____________________________________________________

(1)

Other Assets (Tables)

9 Months Ended

Sep. 30, 2019

Other Assets [Abstract]

Schedule of Other Assets



(In thousands)	September 30, 2019		December 31, 2018

Restricted cash	$	121	$	121
Prepaid expenses	10,750		7,830
Other indefinite-lived intangibles	1,988		1,988
Furniture, fixtures and equipment, net	2,307		1,101
Other	3,570		3,719
Total other assets	$	18,736	$	14,759

Equity (Tables)

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Schedule of Net Income Attributable to Common Stockholders and Transfers (to) from Noncontrolling Interests

The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Net income attributable to common stockholders	$	85,155		$	90,451

Transfers from noncontrolling interests:
Exchange of OP Units with noncontrolling interests	3,209			5,720
Repurchase of OP Units from noncontrolling interests	(431		)	(59		)
Net transfers from noncontrolling interests	2,778			5,661

Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	87,933		$	96,112

Schedule of Accumulated Other Comprehensive Income (Loss)

The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Beginning balance	$	53,944		$	43,099
Adoption of ASU 2017-12 - cumulative opening balance adjustment	—			211
Consolidated derivatives:
Other comprehensive (loss) income before reclassifications	(116,251		)	70,806
Reclassification of gains from AOCI to Interest Expense	(22,202		)	(5,316		)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
Other comprehensive (loss) income before reclassifications	(7,995		)	8,087
Reclassification of gains from AOCI to Income, including depreciation, from unconsolidated Funds	(1,652		)	(383		)
Net current period OCI	(148,100		)	73,405
OCI attributable to noncontrolling interests	45,278			(21,861		)
OCI attributable to common stockholders	(102,822		)	51,544

Ending balance	$	(48,878	)	$	94,643

___________________________________________________


(1)	See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures.

(2)

We calculate our share by multiplying the total amount for each Fund by our equity interest in the respective Fund.

Schedule of Stock-based Compensation Expense

The table below presents our stock-based compensation expense:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Stock-based compensation expense, net	$	2,382	$	2,932	$	7,395	$	8,879
Capitalized stock-based compensation	$	622	$	512	$	1,630	$	1,460
Intrinsic value of options exercised	$	—	$	393	$	—	$	1,196

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On November 1, 2019, we closed a secured, non-recourse $400.0 million interest-only loan scheduled to mature in November 2026. The loan bears interest at LIBOR + 1.15%, which we have effectively fixed through interest rate swaps at 2.18% until July 2021, which increases to 2.31% until October 2024. Part of the proceeds were used to pay off a $360.0 million loan scheduled to mature in June 2023.

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.

Level 3 - inputs are unobservable assumptions generated by the reporting entity

As of September 30, 2019, we did not have any fair value estimates of financial instruments using Level 3 inputs.

Financial instruments disclosed at fair value



(In thousands)	September 30, 2019		December 31, 2018

Fair value	$	4,237,849	$	4,087,979
Carrying value	$	4,213,446	$	4,062,968



(In thousands)	September 30, 2019

Fair value	$	12,760
Carrying value	$	10,884

Financial instruments measured at fair value



(In thousands)	September 30, 2019		December 31, 2018
Derivative Assets:
Fair value - consolidated derivatives⁽¹⁾	$	11,925	$	73,414
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	1,034	$	12,228

Derivative Liabilities:
Fair value - consolidated derivatives⁽¹⁾	$	78,111	$	1,530
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	4,009	$	—

____________________________________________________


(1)	Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets.

(2)

Reflects 100%, not our pro-rata share, of our unconsolidated Funds' derivatives. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated Funds in our consolidated balance sheets. See Note 16 regarding our unconsolidated Funds debt and derivatives.

Ground Lease (Tables)

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Schedule of Future Minimum Ground Lease Payments

The table below, which assumes that the ground rent payments will continue to be $733 thousand per year after February 28, 2029, presents the future minimum ground lease payments as of September 30, 2019:



Twelve months ending September 30:	(In thousands)

2020	$	733
2021	733
2022	733
2023	733
2024	733
Thereafter	45,628
Total future minimum lease payments	$	49,293

Investments in Unconsolidated Funds - Narrative (Details) ft² in Millions	9 Months Ended
	Sep. 30, 2019 ft² fund property
Schedule of Equity Method Investments [Line Items]
Number of properties	83
Percentage of amounts related to the Fund	100.00%
Opportunity Fund
Schedule of Equity Method Investments [Line Items]
Equity interest of the Fund, percent	6.20%
Fund X
Schedule of Equity Method Investments [Line Items]
Purchase of additional equity interest (percent)	1.40%
Equity interest of the Fund, percent	72.70%
Partnership X
Schedule of Equity Method Investments [Line Items]
Equity interest of the Fund, percent	24.60%
Unconsolidated Fund properties
Schedule of Equity Method Investments [Line Items]
Number of real estate funds owned and managed \| fund	3
Office Buildings
Schedule of Equity Method Investments [Line Items]
Number of properties	72
Office Buildings \| Unconsolidated Fund properties
Schedule of Equity Method Investments [Line Items]
Number of properties	8
Area of real estate portfolio (sq ft) \| ft²	1.8

Overview - Narrative (Details) $ in Thousands, ft² in Millions	Sep. 30, 2019 USD ($) ft² land_parcel joint_venture unit	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Real Estate Properties [Line Items]
Consolidated debt	$ 4,213,446		$ 4,163,982
Number of joint ventures consolidated \| joint_venture	3
Consolidated assets	$ 8,520,895		8,261,709
Consolidated investment in real estate	8,056,841		7,783,821
Consolidated liabilities	4,536,833		4,413,279
Consolidated liabilities related to debt	4,176,967		4,134,030
Consolidated equity	3,984,062	$ 4,052,360	3,848,430	$ 3,923,541	$ 3,930,286	$ 3,902,049
Consolidated equity related to noncontrolling interest	$ 1,533,192		1,446,098
Wholly owned and Consolidated properties
Real Estate Properties [Line Items]
Number of land parcels subject to ground lease \| land_parcel	2
Wholly owned and Consolidated properties \| Office
Real Estate Properties [Line Items]
Area of real estate portfolio (sq ft) \| ft²	16.5
Wholly owned and Consolidated properties \| Multifamily
Real Estate Properties [Line Items]
Number of multifamily apartment units \| unit	4,147
Unconsolidated Fund properties \| Office
Real Estate Properties [Line Items]
Area of real estate portfolio (sq ft) \| ft²	1.8
Subsidiaries
Real Estate Properties [Line Items]
Consolidated debt	$ 3,073,446		$ 3,183,982
Consolidated entities
Real Estate Properties [Line Items]
Consolidated assets	8,520,000
Consolidated investment in real estate	8,060,000
Consolidated liabilities	4,540,000
Consolidated liabilities related to debt	4,180,000
Consolidated equity	3,980,000
Consolidated equity related to noncontrolling interest	$ 1,530,000

Ground Lease - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Ground Lease - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Lessee Disclosure [Abstract]
Fixed rent payments due per year on ground lease	$ 733		$ 733
Ground lease right-of-use asset	7,481		7,481
Ground lease liability	10,884		10,884
Ground rent expense	$ 170		$ 532
Ground rent expense		$ 183		$ 550

Equity - AOCI Reconciliation (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2018
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	$ 3,848,430	$ 3,902,049
Other comprehensive (loss) income before reclassifications	(116,251)	70,806
Reclassification of gains from AOCI	(22,202)	(5,316)
Net current period OCI	(148,100)	73,405
OCI attributable to noncontrolling interests	45,278	(21,861)
OCI attributable to common stockholders	(102,822)	51,544
Ending balance	3,984,062	3,923,541
Fund X
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive (loss) income before reclassifications	(7,995)	8,087
Reclassification of gains from AOCI	(1,652)	(383)
AOCI
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance	53,944	43,099
Beginning balance adjustment - cumulative effect of new accounting principle			$ 211
Ending balance	$ (48,878)	$ 94,643

Derivative Contracts - Impact of Hedges on AOCI and Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative [Line Items]
Gain recorded in AOCI - adoption of ASU 2017-12			$ 0	$ 211
(Loss) gain recorded in AOCI before reclassifications			(116,251)	70,806
Interest Expense presented in the consolidated statements of operations	$ (40,397)	$ (33,721)	(107,753)	(99,889)
Income, including depreciation, from unconsolidated Funds	$ 1,831	$ 1,348	5,589	4,522
Unconsolidated Funds
Derivative [Line Items]
(Loss) gain recorded in AOCI before reclassifications			(7,995)	8,087
Cash Flow Hedging \| Derivatives Designated as Cash Flow Hedges
Derivative [Line Items]
Gain recorded in AOCI - adoption of ASU 2017-12			0	211
(Loss) gain recorded in AOCI before reclassifications			(116,251)	70,806
(Gain) loss reclassified from AOCI to Interest Expense			(22,202)	(5,316)
Cash Flow Hedging \| Derivatives Designated as Cash Flow Hedges \| Unconsolidated Funds
Derivative [Line Items]
(Loss) gain recorded in AOCI before reclassifications			(7,995)	8,087
(Gain) loss reclassified from AOCI to Interest Expense			$ (1,652)	$ (383)

Acquired Lease Intangibles (Tables)

9 Months Ended

Sep. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles



(In thousands)	September 30, 2019			December 31, 2018

Above-market tenant leases	$	3,745		$	5,595
Above-market tenant leases - accumulated amortization	(1,800		)	(3,289		)
Above-market ground lease where we are the lessor	1,152			1,152
Above-market ground lease - accumulated amortization	(220		)	(207		)
Acquired lease intangible assets, net	$	2,877		$	3,251

Below-market tenant leases	$	86,159		$	112,175
Below-market tenant leases - accumulated accretion	(47,775		)	(63,013		)
Above-market ground lease where we are the tenant⁽¹⁾	—			4,017
Above-market ground lease - accumulated accretion⁽¹⁾	—			(610		)
Acquired lease intangible liabilities, net	$	38,384		$	52,569

______________________________________________

(1) Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value for the carrying value of the above-market ground lease - see Notes 2 and 4.

Schedule of Net Amortization or Accretion of Above- and Below-Market Leases

The table below summarizes the net amortization/accretion related to our above- and below-market leases:



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2019			2018			2019			2018

Net accretion of above- and below-market tenant lease assets and liabilities⁽¹⁾	$	4,009		$	4,940		$	12,533		$	17,218
Amortization of an above-market ground lease asset⁽²⁾	(6		)	(5		)	(14		)	(13		)
Accretion of an above-market ground lease liability⁽³⁾	—			13			—			38
Total	$	4,003		$	4,948		$	12,519		$	17,243

______________________________________________


(1)	Recorded as a net increase to office and multifamily rental revenues.


(2)	Recorded as a decrease to office parking and other income.


(3)	Recorded as a decrease to office expense. Upon adoption of ASU 2016-02 on January 1, 2019 we adjusted the ground lease right-of-use asset carrying value with the carrying value of the above-market ground lease - see Notes 2 and 4.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated JVs. All significant intercompany balances and transactions have been eliminated in our consolidated financial statements. We consolidate entities in which we are considered to be the primary beneficiary of a VIE or have a majority of the voting interest of the entity. We are deemed to be the primary beneficiary of a VIE when we have (i) the power to direct the activities of that VIE that most significantly impact its economic performance, and (ii) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. We do not consolidate entities in which the other parties have substantive kick-out rights to remove our power to direct the activities, most significantly impacting the economic performance, of that VIE. In determining whether we are the primary beneficiary, we consider factors such as ownership interest, management representation, authority to control decisions, and contractual and substantive participating rights of each party. We consolidate our Operating Partnership through which we conduct substantially all of our business, and own, directly and through subsidiaries, substantially all of our assets, and are obligated to repay substantially all of our liabilities, including $3.07 billion of consolidated debt. See Note 8. We also consolidate three JVs. As of September 30, 2019, these consolidated entities had aggregate total consolidated assets of $8.52 billion (of which $8.06 billion related to investment in real estate), aggregate total consolidated liabilities of $4.54 billion (of which $4.18 billion related to debt), and aggregate total consolidated equity of $3.98 billion (of which $1.53 billion related to noncontrolling interests). In accordance with Topic 842 (as defined in Note 2 below), which we adopted in the first quarter of 2019, we report our office rental revenues and tenant recoveries on a combined basis as Rental revenues and tenant recoveries under Office rental in our consolidated statements of operations, and we reclassified the comparable periods to conform to the current period presentation. See Note 2 The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the consolidated financial statements prepared in conformity with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim consolidated financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in our 2018 Annual Report on Form 10-K and the notes thereto. Any references to the number or class of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our consolidated financial statements in accordance with the standards of the PCAOB.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition Office parking revenues, which are included in Parking and other income under Office rental in our consolidated statements of operations, are within the scope of ASC 606 ("Revenue from Contracts with Customers"). Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing.
Income Taxes	Income Taxes We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.
New Accounting Pronouncements	New Accounting Pronouncements Changes to US GAAP are implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not issued any other ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. ASUs Adopted ASU 2016-02 (Topic 842 - "Leases") In February 2016, the FASB issued ASU No. 2016-02, (Topic 842 - "Leases"). The primary impact of the ASU is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases. The accounting applied by lessors is largely unchanged. For example, the vast majority of operating leases remain classified as operating leases, and lessors continue to recognize lease payments for those leases on a straight-line basis over the lease term. We adopted the ASU on January 1, 2019 using the modified retrospective transition method. We recorded cumulative adjustments of $2.1 million and $0.4 million to the opening balances of accumulated deficit and noncontrolling interests, respectively, for leasing expenses related to leases that were entered into before the adoption date but commenced after the adoption date. The ASU provides a practical expedient package, which we elected to use, that allows entities (a) not to reassess whether any expired or existing contracts as of the adoption date are considered or contain leases; (b) not to reassess the lease classification for any expired or existing leases as of the adoption date; and (c) not to reassess initial direct costs for any existing leases as of the adoption date. All leases entered into on or after the adoption date were accounted for under the ASU. We lease space to tenants at our office and multifamily properties. Under the ASU, all of our tenant leases continue to be classified as operating leases. The ASU continues to require that lease payments for operating leases be recognized over the lease term on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which benefit is expected to be derived from the use of the underlying asset. If collectibility of the lease payments is not probable at the commencement date, then the lease income should be limited to the lesser of the income recognized on a straight-line basis or cash basis. If the assessment of collectibility changes after the commencement date, any difference between the lease income that would have been recognized on a straight-line basis and cash basis must be recognized as a current-period adjustment to lease income. We elected to adopt the complete impairment model guidance within ASC 842. Under this model we no longer maintain a general reserve related to our receivables, and instead analyze, on a lease-by-lease basis, whether amounts due under the operating lease are deemed probable for collection. We write off tenant and deferred rent receivables as a charge against rental revenue in the period we determine amounts receivable are not probable for collection. The ASU requires separation of the lease from the non-lease components (for example, maintenance services or other activities that transfer a good or service to the customer) in a contract. Only the lease components are accounted for in accordance with the ASU. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone selling price basis and the non-lease component would be accounted for in accordance with ASC 606 ("Revenue from Contracts with Customers"). In July 2018, the FASB issued ASU No. 2018-11 which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components if certain criteria are met. Our office tenant leases include a lease component for the rental income and a non-lease component for the related tenant recoveries. We determined that our office tenant leases qualify for the single component presentation and we adopted the practical expedient. We account for the combined components under the ASU. Rental revenues and tenant recoveries from our office tenant leases is included in Rental revenues and tenant recoveries under Office rental in our consolidated statements of operations. Rental revenues from our multifamily tenant leases is included in multifamily Rental revenues in our consolidated statements of operations. Rental revenue recognized on a straight-line basis in excess of billed rents is included in Deferred rent receivables in our consolidated balance sheets. See Note 15 for more information regarding the future lease rental receipts from our operating leases. The ASU defines initial direct costs of a lease, which may be capitalized, as costs that would not have been incurred had the lease not been executed. Costs to negotiate a lease that would have been incurred regardless of whether the lease was executed, such as employee salaries, are not considered to be initial direct costs, and may not be capitalized. We historically capitalized most of our leasing costs. We expensed $1.0 million and $3.1 million during the three and nine months ended September 30, 2019, respectively, of leasing costs related to our tenant leases that did not qualify as initial direct costs of a lease, which are included in General and administrative expenses in our consolidated statements of operations. We pay rent under a ground lease which expires on December 31, 2086. Upon adoption of the ASU, we continued to classify the lease as an operating lease, and we recognized a right-of-use asset for the land and a lease liability for the future lease payments of $10.9 million. We calculated the carrying value of the right-of-use asset and lease liability by discounting the future lease payments using our incremental borrowing rate. We adjusted the right-of-use asset carrying value for a related above-market ground lease liability of $3.4 million, which reduced the carrying value of the asset to $7.5 million. We continued to recognize the lease payments as expense, which is included in Office expenses in our consolidated statements of operations. See Note 4 for more information regarding this ground lease. See Note 13 for the fair value disclosures related to the ground lease liability. In December 2018, the FASB issued ASU 2018-20, an update to ASU 2016-02, which provides guidance on accounting for sales and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and nonlease components. We adopted the ASU and it did not have a material impact on our consolidated financial statements. In March 2019, the FASB issued ASU 2019-01, an update to ASU 2016-02, which provides guidance on transition disclosures related to Topic 250 "Accounting Changes and Error Corrections" and other technical updates. We adopted the ASU and it did not have a material impact on our consolidated financial statements. ASUs Not Yet Adopted ASU 2016-13 (Topic 326 - "Financial Instruments-Credit Losses") In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. The ASU would impact our measurement of credit losses for our Office parking receivables, which were $1.2 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Tenant receivables in our consolidated balance sheets. We expect to adopt the ASU in the first quarter of 2020 and we do not expect the ASU to have a material impact on our consolidated financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods. Considerable judgment is necessary to interpret market data and determine an estimated fair value. The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs. The hierarchy is as follows: Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets. Level 3 - inputs are unobservable assumptions generated by the reporting entity

Segment Reporting

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Segment Reporting



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Office Segment
Total office revenues	$	205,900		$	197,054		$	605,379		$	578,148
Office expenses	(68,754		)	(66,288		)	(196,511		)	(188,462		)
Office segment profit	137,146			130,766			408,868			389,686

Multifamily Segment
Total multifamily revenues	32,169			26,282			87,410			76,904
Multifamily expenses	(9,127		)	(7,142		)	(24,394		)	(20,748		)
Multifamily segment profit	23,042			19,140			63,016			56,156

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842

The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders:



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842
General and administrative expenses	(9,218		)	(9,440		)	(28,209		)	(28,444		)
Depreciation and amortization	(90,279		)	(74,067		)	(248,876		)	(219,944		)
Other income	2,952			2,951			8,742			8,373
Other expenses	(1,656		)	(1,561		)	(5,308		)	(5,380		)
Income, including depreciation, from unconsolidated Funds	1,831			1,348			5,589			4,522
Interest expense	(40,397		)	(33,721		)	(107,753		)	(99,889		)
Net income	23,421			35,416			96,069			105,080
Less: Net income attributable to noncontrolling interests	(933		)	(4,855		)	(10,914		)	(14,629		)
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451

Commitments, Contingencies and Guarantees (Tables)

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Debt Related to Unconsolidated Funds

The table below summarizes our Funds' debt as of September 30, 2019. The amounts represent 100% (not our pro-rata share) of the amounts related to our Funds:

Fund⁽¹⁾

Loan Maturity Date

Principal Balance

(In Millions)

Variable Interest Rate

Swap Fixed Interest Rate

Swap Maturity Date

Partnership X⁽²⁾⁽⁴⁾

3/1/2023

110.0

LIBOR + 1.40%

2.30%

3/1/2021

Fund X⁽³⁾⁽⁴⁾

7/1/2024

400.0

LIBOR + 1.65%

3.44%

7/1/2022

510.0

___________________________________________________


(1)	See Note 6 for more information regarding our unconsolidated Funds.


(2)	Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2019, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.4 million.

(3)

(4)

Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

Investment in Real Estate - Purchase Price Allocation for Acquisitions (Details) ft² in Thousands, $ in Thousands	Jun. 28, 2019	Jun. 07, 2019 USD ($) ft² unit
Schedule Of Asset Acquisitions [Line Items]
Contract price		$ 365,100
Consolidated JV
Schedule Of Asset Acquisitions [Line Items]
Capital interest in consolidated JV (percent)	20.00%
The Glendon
Schedule Of Asset Acquisitions [Line Items]
Contract price		$ 365,100
Number of multifamily units \| unit		350
Retail square footage \| ft²		50
Investment in real estate:
Tenant improvements and lease intangibles		$ 2,301
Acquired above- and below-market leases, net		(2,114)
Net assets and liabilities acquired		366,584
The Glendon \| Land
Investment in real estate:
Land, Buildings and Improvements		32,773
The Glendon \| Buildings and improvements
Investment in real estate:
Land, Buildings and Improvements		$ 333,624

Acquired Lease Intangibles - Impact on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	$ 4,003	$ 4,948	$ 12,519	$ 17,243
Rental revenues \| Tenant Lease
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	4,009	4,940	12,533	17,218
Office parking and other income \| Above Market Ground Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	(6)	(5)	(14)	(13)
Office expenses \| Above Market Ground Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	$ 0	$ 13	$ 0	$ 38

Equity - Equity Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Stock-based compensation expense, net	$ 2,382	$ 2,932	$ 7,395	$ 8,879
Capitalized stock-based compensation	622	512	1,630	1,460
Intrinsic value of options exercised	$ 0	$ 393	$ 0	$ 1,196

Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Losses to be reclassified from AOCI	$ 1,581
Unconsolidated Funds
Derivative Instruments, Gain (Loss) [Line Items]
Losses to be reclassified from AOCI	$ 226

Derivative Contracts - Summary of Derivatives (Details) - Interest Rate Swap - Derivatives Designated as Cash Flow Hedges - Cash Flow Hedging $ in Thousands	Sep. 30, 2019 USD ($) instrument
Derivative [Line Items]
Number of Interest Rate Swaps \| instrument	38
Notional	$ 4,684,800
Percent of notional amount related to the Fund	100.00%
Unconsolidated Funds
Derivative [Line Items]
Number of Interest Rate Swaps \| instrument	4
Notional	$ 510,000
Percent of notional amount related to the Fund	100.00%
Forward swap
Derivative [Line Items]
Notional	$ 502,400

Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Debt Statistics (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
Principal balance of consolidated fixed rate debt	$ 4,210,000
Weighted average remaining life (including extension options) of consolidated fixed rate debt (in years)	6 years 2 months 12 days
Weighted average remaining fixed interest period of consolidated fixed rate debt (in years)	3 years 10 months 24 days
Weighted average annual interest rate of consolidated fixed rate debt (as a percent)	3.00%
Debt Instrument [Line Items]
Principal Balance	$ 4,213,446	$ 4,163,982
Aggregate Swapped to Fixed Rate Loans
Debt Instrument [Line Items]
Principal Balance	4,182,400	3,882,400
Aggregate Fixed Rate Loans
Debt Instrument [Line Items]
Principal Balance	31,046	31,582
Aggregate Floating Rate Loans
Debt Instrument [Line Items]
Principal Balance	$ 0	$ 250,000

Investments in Unconsolidated Funds - Summary of Statement of Financial Position for Investments in Unconsolidated Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Real Estate Investments, Net [Abstract]
Total assets	$ 677,022	$ 694,713
Total liabilities	533,467	525,483
Total equity	$ 143,555	$ 169,230

Segment Reporting - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 238,069	$ 223,336	$ 692,789	$ 655,052
Segment profit	160,188	149,906	471,884	445,842
Office Segment
Segment Reporting Information [Line Items]
Total revenues	205,900	197,054	605,379	578,148
Operating expenses	(68,754)	(66,288)	(196,511)	(188,462)
Segment profit	137,146	130,766	408,868	389,686
Multifamily Segment
Segment Reporting Information [Line Items]
Total revenues	32,169	26,282	87,410	76,904
Operating expenses	(9,127)	(7,142)	(24,394)	(20,748)
Segment profit	$ 23,042	$ 19,140	$ 63,016	$ 56,156

Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) property day	Dec. 31, 2018 USD ($)
Debt Instrument [Line Items]
Principal Balance	$ 4,213,446	$ 4,163,982
Percentage of amounts related to the Funds	100.00%
Partnership X
Debt Instrument [Line Items]
Maximum future payments under swap agreement	$ 1,400
Partnership X \| Floating rate term loan
Debt Instrument [Line Items]
Loan Maturity Date	Mar. 01, 2023
Principal Balance	$ 110,000
Number of properties to secure loan \| property	2
Assumed LIBOR interest rate to assess maximum future payments under swap agreement	0.00%
Partnership X \| Floating rate term loan \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)	1.40%
Partnership X \| Interest rate swap
Debt Instrument [Line Items]
Swap Fixed Interest Rate	2.30%
Swap Maturity Date	Mar. 01, 2021
Fund X
Debt Instrument [Line Items]
Maximum future payments under swap agreement	$ 20,000
Loan agreement one-month LIBOR threshold for interest rate cap purchase requirement	3.56%
Loan agreement consecutive days threshold for interest rate cap purchase requirement \| day	14
Fund X \| Floating rate term loan
Debt Instrument [Line Items]
Loan Maturity Date	Jul. 01, 2024
Principal Balance	$ 400,000
Number of properties to secure loan \| property	6
Assumed LIBOR interest rate to assess maximum future payments under swap agreement	0.00%
Fund X \| Floating rate term loan \| LIBOR
Debt Instrument [Line Items]
Variable Interest Rate - basis spread (percent)	1.65%
Fund X \| Interest rate swap
Debt Instrument [Line Items]
Swap Fixed Interest Rate	3.44%
Swap Maturity Date	Jul. 01, 2022
Unconsolidated Funds
Debt Instrument [Line Items]
Percentage of amounts related to the Funds	100.00%
Unconsolidated Funds \| Floating rate term loan
Debt Instrument [Line Items]
Principal Balance	$ 510,000
Loan agreement LIBOR floor	0.00%

Derivative Contracts

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Contracts

Derivative Summary

As of September 30, 2019, our interest rate swaps, which include the interest rate swaps of our consolidated JVs and our unconsolidated Funds, were designated as cash flow hedges:



	Number of Interest Rate Swaps	Notional (In thousands)

Consolidated derivatives^(1)(2)(4)(5)	38	$	4,684,800
Unconsolidated Funds' derivatives⁽³⁾⁽⁴⁾	4	$	510,000

___________________________________________________


(1)	The notional amount reflects 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	Includes forward swaps with a total notional of $502.4 million.


(3)	The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.


(4)	See Note 13 for our derivative fair value disclosures.


(5)	See Note 17 for swaps that we executed after September 30, 2019.

Credit-risk-related Contingent Features



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	80,832	$	1,681
Unconsolidated Funds' derivatives⁽²⁾	$	3,970	$	—

___________________________________________________


(1)	Includes 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

Counterparty Credit Risk



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	13,238	$	76,021
Unconsolidated Funds' derivatives⁽²⁾	$	1,136	$	12,576

___________________________________________________


(1)	The amounts reflect 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

Impact of Hedges on AOCI and the Consolidated Statements of Operations

The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations:



(In thousands)	Nine Months Ended September 30,
	2019			2018
Derivatives Designated as Cash Flow Hedges:

Consolidated derivatives:
Gain recorded in AOCI - adoption of ASU 2017-12⁽¹⁾	$	—		$	211
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(116,251	)	$	70,806
Gains reclassified from AOCI to Interest Expense⁽¹⁾	$	(22,202	)	$	(5,316	)
Interest Expense presented in the consolidated statements of operations	$	(107,753	)	$	(99,889	)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(7,995	)	$	8,087
Gains reclassified from AOCI to Income, including depreciation, from unconsolidated Funds⁽¹⁾	$	(1,652	)	$	(383	)
Income, including depreciation, from unconsolidated Funds presented in the consolidated statements of operations	$	5,589		$	4,522

___________________________________________________


(1)	See Note 11 for our AOCI reconciliation.


(2)	We calculate our share by multiplying the total amount for each Fund by our direct and indirect equity interest in the respective Fund.

Future Reclassifications from AOCI



	(In thousands)

Consolidated derivatives:
Losses to be reclassified from AOCI to Interest Expense	$	1,581
Unconsolidated Funds' derivatives (our share):
Losses to be reclassified from AOCI to Income, including depreciation, from unconsolidated Funds	$	226

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies On January 1, 2019, we adopted ASUs that changed our accounting policy for leases. See "New Accounting Pronouncements" below. We have not made any other changes to our significant accounting policies in our 2018 Annual Report on Form 10-K. Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Revenue Recognition Office parking revenues, which are included in Parking and other income under Office rental in our consolidated statements of operations, are within the scope of ASC 606 ("Revenue from Contracts with Customers"). Our lease contracts generally make a specified number of parking spaces available to the tenant, and we bill and recognize parking revenues on a monthly basis in accordance with the lease agreements, generally using the monthly parking rates in effect at the time of billing. Office parking revenues were $27.3 million and $26.0 million for the three months ended September 30, 2019 and 2018, respectively, and $80.5 million and $76.8 million for the nine months ended September 30, 2019 and 2018, respectively. Office parking receivables were $1.2 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Tenant receivables in our consolidated balance sheets. Income Taxes We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS. New Accounting Pronouncements Changes to US GAAP are implemented by the FASB in the form of ASUs. We consider the applicability and impact of all ASUs. Other than the ASUs discussed below, the FASB has not issued any other ASUs that we expect to be applicable and have a material impact on our consolidated financial statements. ASUs Adopted ASU 2016-02 (Topic 842 - "Leases") In February 2016, the FASB issued ASU No. 2016-02, (Topic 842 - "Leases"). The primary impact of the ASU is the recognition of lease assets and liabilities on the balance sheet by lessees for leases classified as operating leases. The accounting applied by lessors is largely unchanged. For example, the vast majority of operating leases remain classified as operating leases, and lessors continue to recognize lease payments for those leases on a straight-line basis over the lease term. We adopted the ASU on January 1, 2019 using the modified retrospective transition method. We recorded cumulative adjustments of $2.1 million and $0.4 million to the opening balances of accumulated deficit and noncontrolling interests, respectively, for leasing expenses related to leases that were entered into before the adoption date but commenced after the adoption date. The ASU provides a practical expedient package, which we elected to use, that allows entities (a) not to reassess whether any expired or existing contracts as of the adoption date are considered or contain leases; (b) not to reassess the lease classification for any expired or existing leases as of the adoption date; and (c) not to reassess initial direct costs for any existing leases as of the adoption date. All leases entered into on or after the adoption date were accounted for under the ASU. We lease space to tenants at our office and multifamily properties. Under the ASU, all of our tenant leases continue to be classified as operating leases. The ASU continues to require that lease payments for operating leases be recognized over the lease term on a straight-line basis unless another systematic and rational basis is more representative of the pattern in which benefit is expected to be derived from the use of the underlying asset. If collectibility of the lease payments is not probable at the commencement date, then the lease income should be limited to the lesser of the income recognized on a straight-line basis or cash basis. If the assessment of collectibility changes after the commencement date, any difference between the lease income that would have been recognized on a straight-line basis and cash basis must be recognized as a current-period adjustment to lease income. We elected to adopt the complete impairment model guidance within ASC 842. Under this model we no longer maintain a general reserve related to our receivables, and instead analyze, on a lease-by-lease basis, whether amounts due under the operating lease are deemed probable for collection. We write off tenant and deferred rent receivables as a charge against rental revenue in the period we determine amounts receivable are not probable for collection. The ASU requires separation of the lease from the non-lease components (for example, maintenance services or other activities that transfer a good or service to the customer) in a contract. Only the lease components are accounted for in accordance with the ASU. The consideration in the contract is allocated to the lease and non-lease components on a relative standalone selling price basis and the non-lease component would be accounted for in accordance with ASC 606 ("Revenue from Contracts with Customers"). In July 2018, the FASB issued ASU No. 2018-11 which includes an optional practical expedient for lessors to elect, by class of underlying asset, to not separate the lease from the non-lease components if certain criteria are met. Our office tenant leases include a lease component for the rental income and a non-lease component for the related tenant recoveries. We determined that our office tenant leases qualify for the single component presentation and we adopted the practical expedient. We account for the combined components under the ASU. Rental revenues and tenant recoveries from our office tenant leases is included in Rental revenues and tenant recoveries under Office rental in our consolidated statements of operations. Rental revenues from our multifamily tenant leases is included in multifamily Rental revenues in our consolidated statements of operations. Rental revenue recognized on a straight-line basis in excess of billed rents is included in Deferred rent receivables in our consolidated balance sheets. See Note 15 for more information regarding the future lease rental receipts from our operating leases. The ASU defines initial direct costs of a lease, which may be capitalized, as costs that would not have been incurred had the lease not been executed. Costs to negotiate a lease that would have been incurred regardless of whether the lease was executed, such as employee salaries, are not considered to be initial direct costs, and may not be capitalized. We historically capitalized most of our leasing costs. We expensed $1.0 million and $3.1 million during the three and nine months ended September 30, 2019, respectively, of leasing costs related to our tenant leases that did not qualify as initial direct costs of a lease, which are included in General and administrative expenses in our consolidated statements of operations. We pay rent under a ground lease which expires on December 31, 2086. Upon adoption of the ASU, we continued to classify the lease as an operating lease, and we recognized a right-of-use asset for the land and a lease liability for the future lease payments of $10.9 million. We calculated the carrying value of the right-of-use asset and lease liability by discounting the future lease payments using our incremental borrowing rate. We adjusted the right-of-use asset carrying value for a related above-market ground lease liability of $3.4 million, which reduced the carrying value of the asset to $7.5 million. We continued to recognize the lease payments as expense, which is included in Office expenses in our consolidated statements of operations. See Note 4 for more information regarding this ground lease. See Note 13 for the fair value disclosures related to the ground lease liability. In December 2018, the FASB issued ASU 2018-20, an update to ASU 2016-02, which provides guidance on accounting for sales and other similar taxes collected from lessees, certain lessor costs, and recognition of variable payments for contracts with lease and nonlease components. We adopted the ASU and it did not have a material impact on our consolidated financial statements. In March 2019, the FASB issued ASU 2019-01, an update to ASU 2016-02, which provides guidance on transition disclosures related to Topic 250 "Accounting Changes and Error Corrections" and other technical updates. We adopted the ASU and it did not have a material impact on our consolidated financial statements. ASUs Not Yet Adopted ASU 2016-13 (Topic 326 - "Financial Instruments-Credit Losses") In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. The ASU would impact our measurement of credit losses for our Office parking receivables, which were $1.2 million and $1.1 million as of September 30, 2019 and December 31, 2018, respectively, and are included in Tenant receivables in our consolidated balance sheets. We expect to adopt the ASU in the first quarter of 2020 and we do not expect the ASU to have a material impact on our consolidated financial statements.

Investments in Unconsolidated Funds

9 Months Ended

Sep. 30, 2019

Real Estate Investments, Net [Abstract]

Investments In Unconsolidated Funds

Investments in Unconsolidated Funds

Description of our Funds



	Nine Months Ended September 30,
(In thousands)	2019		2018

Operating distributions received	$	5,589	$	4,522
Capital distributions received	5,851		5,866
Total distributions received	$	11,440	$	10,388

Summarized Financial Information for our Funds



(In thousands)	September 30, 2019		December 31, 2018

Total assets	$	677,022	$	694,713
Total liabilities	$	533,467	$	525,483
Total equity	$	143,555	$	169,230



	Nine Months Ended September 30,
(In thousands)	2019		2018

Total revenues	$	62,239	$	58,935
Operating income	$	18,033	$	16,870
Net income	$	5,759	$	4,333

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2019	Nov. 01, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-33106
Entity Registrant Name	Douglas Emmett, Inc.
Entity Central Index Key	0001364250
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	20-3073047
Entity Address, Address Line One	1299 Ocean Avenue, Suite 1000
Entity Address, City or Town	Santa Monica
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90401
City Area Code	310
Local Phone Number	255-7700
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	DEI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		175,349,297

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 23,421	$ 35,416	$ 96,069	$ 105,080
Other comprehensive (loss) income: cash flow hedges	(33,179)	10,042	(148,100)	73,405
Comprehensive (loss) income	(9,758)	45,458	(52,031)	178,485
Less: Comprehensive loss (income) attributable to noncontrolling interests	9,221	(7,740)	34,364	(36,490)
Comprehensive (loss) income attributable to common stockholders	$ (537)	$ 37,718	$ (17,667)	$ 141,995

Investments in Unconsolidated Funds (Tables)

9 Months Ended

Sep. 30, 2019

Real Estate Investments, Net [Abstract]

Summary of Statement of Operations for Investments in Unconsolidated Funds and Cash Received from Funds



(In thousands)	September 30, 2019		December 31, 2018

Total assets	$	677,022	$	694,713
Total liabilities	$	533,467	$	525,483
Total equity	$	143,555	$	169,230



	Nine Months Ended September 30,
(In thousands)	2019		2018

Total revenues	$	62,239	$	58,935
Operating income	$	18,033	$	16,870
Net income	$	5,759	$	4,333

The table below presents cash distributions we received from our Funds:



	Nine Months Ended September 30,
(In thousands)	2019		2018

Operating distributions received	$	5,589	$	4,522
Capital distributions received	5,851		5,866
Total distributions received	$	11,440	$	10,388

Derivative Contracts (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Swap Derivatives

As of September 30, 2019, our interest rate swaps, which include the interest rate swaps of our consolidated JVs and our unconsolidated Funds, were designated as cash flow hedges:



	Number of Interest Rate Swaps	Notional (In thousands)

Consolidated derivatives^(1)(2)(4)(5)	38	$	4,684,800
Unconsolidated Funds' derivatives⁽³⁾⁽⁴⁾	4	$	510,000

___________________________________________________


(1)	The notional amount reflects 100%, not our pro-rata share, of our consolidated JVs' derivatives.


(2)	Includes forward swaps with a total notional of $502.4 million.


(3)	The notional amount reflects 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.


(4)	See Note 13 for our derivative fair value disclosures.

(5)

See Note 17 for swaps that we executed after September 30, 2019.

Schedule of Fair Value of Interest Rate Swap Contract Liabilities

The fair value of our interest rate swap contract liabilities, including accrued interest and excluding credit risk adjustments, was as follows:



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	80,832	$	1,681
Unconsolidated Funds' derivatives⁽²⁾	$	3,970	$	—

___________________________________________________


(1)	Includes 100%, not our pro-rata share, of our consolidated JVs' derivatives.

(2)

The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

Schedule of Fair Value of Interest Rate Swap Contract Assets

The fair value of our interest rate swap contract assets, including accrued interest and excluding credit risk adjustments, was as follows:



(In thousands)	September 30, 2019		December 31, 2018

Consolidated derivatives⁽¹⁾	$	13,238	$	76,021
Unconsolidated Funds' derivatives⁽²⁾	$	1,136	$	12,576

___________________________________________________


(1)	The amounts reflect 100%, not our pro-rata share, of our consolidated JVs' derivatives.

(2)

The amounts reflect 100%, not our pro-rata share, of our unconsolidated Funds' derivatives.

Effect of Derivative Instruments on Consolidated Statements of Operations

The table below presents the effect of our derivatives on our AOCI and the consolidated statements of operations:



(In thousands)	Nine Months Ended September 30,
	2019			2018
Derivatives Designated as Cash Flow Hedges:

Consolidated derivatives:
Gain recorded in AOCI - adoption of ASU 2017-12⁽¹⁾	$	—		$	211
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(116,251	)	$	70,806
Gains reclassified from AOCI to Interest Expense⁽¹⁾	$	(22,202	)	$	(5,316	)
Interest Expense presented in the consolidated statements of operations	$	(107,753	)	$	(99,889	)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
(Loss) gain recorded in AOCI before reclassifications⁽¹⁾	$	(7,995	)	$	8,087
Gains reclassified from AOCI to Income, including depreciation, from unconsolidated Funds⁽¹⁾	$	(1,652	)	$	(383	)
Income, including depreciation, from unconsolidated Funds presented in the consolidated statements of operations	$	5,589		$	4,522

___________________________________________________


(1)	See Note 11 for our AOCI reconciliation.

(2)

We calculate our share by multiplying the total amount for each Fund by our direct and indirect equity interest in the respective Fund.

Schedule of Future Reclassifications from AOCI



	(In thousands)

Consolidated derivatives:
Losses to be reclassified from AOCI to Interest Expense	$	1,581
Unconsolidated Funds' derivatives (our share):
Losses to be reclassified from AOCI to Income, including depreciation, from unconsolidated Funds	$	226

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Summary of Operating Activity of Reportable Segments

The table below presents the operating activity of our reportable segments:



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Office Segment
Total office revenues	$	205,900		$	197,054		$	605,379		$	578,148
Office expenses	(68,754		)	(66,288		)	(196,511		)	(188,462		)
Office segment profit	137,146			130,766			408,868			389,686

Multifamily Segment
Total multifamily revenues	32,169			26,282			87,410			76,904
Multifamily expenses	(9,127		)	(7,142		)	(24,394		)	(20,748		)
Multifamily segment profit	23,042			19,140			63,016			56,156

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842

Reconciliation of Segment Profit to Net Income Attributable to Common Stockholders

The table below presents a reconciliation of the total profit from all segments to net income attributable to common stockholders:



(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018

Total profit from all segments	$	160,188		$	149,906		$	471,884		$	445,842
General and administrative expenses	(9,218		)	(9,440		)	(28,209		)	(28,444		)
Depreciation and amortization	(90,279		)	(74,067		)	(248,876		)	(219,944		)
Other income	2,952			2,951			8,742			8,373
Other expenses	(1,656		)	(1,561		)	(5,308		)	(5,380		)
Income, including depreciation, from unconsolidated Funds	1,831			1,348			5,589			4,522
Interest expense	(40,397		)	(33,721		)	(107,753		)	(99,889		)
Net income	23,421			35,416			96,069			105,080
Less: Net income attributable to noncontrolling interests	(933		)	(4,855		)	(10,914		)	(14,629		)
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451

Investment in Real Estate (Tables)

9 Months Ended

Sep. 30, 2019

Asset Acquisition [Abstract]

Schedule of Purchase Price Allocation for Acquisition

The table below summarizes the purchase price allocation for the acquisition. The contract and purchase prices differ due to prorations and similar adjustments:



(In thousands, except number of units)	The Glendon

Submarket	West Los Angeles
Acquisition date	June 7, 2019
Contract price	$	365,100
Number of multifamily units	350
Retail square footage	50

Investment in real estate:
Land	$	32,773
Buildings and improvements	333,624
Tenant improvements and lease intangibles	2,301
Acquired above- and below-market leases, net	(2,114		)
Net assets and liabilities acquired	$	366,584

Commitments, Contingencies and Guarantees

9 Months Ended

Sep. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

Legal Proceedings

Concentration of Risk

Asset Retirement Obligations

Development and Other Contracts

Guarantees

Fund⁽¹⁾

Loan Maturity Date

Principal Balance

(In Millions)

Variable Interest Rate

Swap Fixed Interest Rate

Swap Maturity Date

Partnership X⁽²⁾⁽⁴⁾

3/1/2023

110.0

LIBOR + 1.40%

2.30%

3/1/2021

Fund X⁽³⁾⁽⁴⁾

7/1/2024

400.0

LIBOR + 1.65%

3.44%

7/1/2022

510.0

___________________________________________________


(1)	See Note 6 for more information regarding our unconsolidated Funds.


(2)	Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2019, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.4 million.

(3)

(4)

Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

Equity - Changes in Ownership Interest in Operating Partnership (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Stockholders' Equity Note [Abstract]
Net income attributable to common stockholders	$ 22,488	$ 30,561	$ 85,155	$ 90,451
Transfers from noncontrolling interests:
Exchange of OP Units with noncontrolling interests			3,209	5,720
Repurchase of OP Units from noncontrolling interests			(431)	(59)
Net transfers from noncontrolling interests			2,778	5,661
Change from net income attributable to common stockholders and transfers from noncontrolling interests			$ 87,933	$ 96,112

Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	$ 11,925	$ 73,414
Interest Rate Swap \| Derivatives Designated as Cash Flow Hedges \| Cash Flow Hedging
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	$ 13,238	76,021
Percent of notional amount related to the Fund	100.00%
Interest Rate Swap \| Derivatives Designated as Cash Flow Hedges \| Cash Flow Hedging \| Unconsolidated Funds
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	$ 1,136	$ 12,576
Percent of notional amount related to the Fund	100.00%

Fair Value of Financial Instruments - Financial Instruments Disclosed at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Ground lease liability	$ 10,884
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured notes payable	4,237,849	$ 4,087,979
Ground lease liability	12,760
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Secured notes payable	4,213,446	$ 4,062,968
Ground lease liability	$ 10,884

Overview - Schedule of Properties Portfolio (Details)	Sep. 30, 2019 property
Real Estate Properties [Line Items]
Number of properties	83
Office
Real Estate Properties [Line Items]
Number of properties	72
Office \| Wholly-owned properties
Real Estate Properties [Line Items]
Number of properties	53
Office \| Consolidated JV properties
Real Estate Properties [Line Items]
Number of properties	11
Office \| Unconsolidated Fund properties
Real Estate Properties [Line Items]
Number of properties	8
Multifamily \| Wholly-owned properties
Real Estate Properties [Line Items]
Number of properties	10
Consolidated Portfolio
Real Estate Properties [Line Items]
Number of properties	75
Consolidated Portfolio \| Office
Real Estate Properties [Line Items]
Number of properties	64
Consolidated Portfolio \| Office \| Wholly-owned properties
Real Estate Properties [Line Items]
Number of properties	53
Consolidated Portfolio \| Office \| Consolidated JV properties
Real Estate Properties [Line Items]
Number of properties	11
Consolidated Portfolio \| Office \| Unconsolidated Fund properties
Real Estate Properties [Line Items]
Number of properties	0
Consolidated Portfolio \| Multifamily
Real Estate Properties [Line Items]
Number of properties	11
Consolidated Portfolio \| Multifamily \| Wholly-owned properties
Real Estate Properties [Line Items]
Number of properties	10
Consolidated Portfolio \| Multifamily \| Consolidated JV properties
Real Estate Properties [Line Items]
Number of properties	1

Ground Lease - Future Minimum Ground Lease Payments (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Future Minimum Ground Lease Payments
2020	$ 733
2021	733
2022	733
2023	733
2024	733
Thereafter	45,628
Total future minimum lease payments	$ 49,293

Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative Assets:
Fair value - derivatives	$ 11,925	$ 73,414
Derivative Liabilities:
Fair value - derivatives	$ 78,111	1,530
Fund X \| Interest Rate Swap
Derivative Liabilities:
Percent of notional amount related to the Fund	100.00%
Level 2
Derivative Assets:
Fair value - derivatives	$ 11,925	73,414
Derivative Liabilities:
Fair value - derivatives	78,111	1,530
Level 2 \| Fund X
Derivative Assets:
Fair value - unconsolidated Funds' derivatives	1,034	12,228
Derivative Liabilities:
Fair value - unconsolidated Funds' derivatives	$ 4,009	$ 0

Future Minimum Lease Rental Receipts - Summary of Minimum Rental Receipts (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($) land_parcel
Future Minimum Base Rentals
2020	$ 603,132
2021	529,062
2022	442,362
2023	357,131
2024	273,685
Thereafter	673,833
Total future minimum base rentals	$ 2,879,205
Maximum term of residential leases not included in total future minimum base rentals	1 year
Wholly-owned properties
Future Minimum Base Rentals
Number of land parcels subject to ground lease \| land_parcel	2

Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Loan Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Disclosure [Abstract]
Accumulated amortization on deferred loan costs	$ 28,900		$ 28,900		$ 24,200
Loan Costs Included In Interest Expense
Deferred loan cost amortization			10,603	$ 6,285
Interest Expense
Loan Costs Included In Interest Expense
Loan costs expensed	1,751	$ 0	1,751	0
Deferred loan costs written off	4,416	7	4,992	411
Deferred loan cost amortization	1,807	1,999	5,611	5,874
Total	$ 7,974	$ 2,006	$ 12,354	$ 6,285

Other Assets - Summary of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other Assets [Abstract]
Restricted cash	$ 121	$ 121
Prepaid expenses	10,750	7,830
Other indefinite-lived intangibles	1,988	1,988
Furniture, fixtures and equipment, net	2,307	1,101
Other	3,570	3,719
Total other assets	$ 18,736	$ 14,759

Secured Notes Payable and Revolving Credit Facility, Net (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of Secured Notes Payable and Revolving Credit Facility



Description	Maturity Date⁽¹⁾	Principal Balance as of September 30, 2019			Principal Balance as of December 31, 2018			Variable Interest Rate	Fixed Interest Rate⁽²⁾	Swap Maturity Date

		(In thousands)

Wholly Owned Subsidiaries
Fannie Mae loan⁽³⁾	—	$	—		$	145,000		—	—	—
Fannie Mae loan⁽³⁾	—	—			115,000			—	—	—
Term loan⁽³⁾	—	—			220,000			—	—	—
Term loan⁽³⁾	—	—			340,000			—	—	—
Term loan⁽³⁾	—	—			400,000			—	—	—
Term loan⁽³⁾	—	—			180,000			—	—	—
Term loan⁽⁴⁾⁽⁵⁾	6/23/2023	360,000			360,000			LIBOR + 1.55%	2.57%	7/1/2021
Term loan⁽⁵⁾	1/1/2024	300,000			300,000			LIBOR + 1.55%	3.46%	1/1/2022
Term loan⁽⁵⁾	3/3/2025	335,000			335,000			LIBOR + 1.30%	3.84%	3/1/2023
Fannie Mae loan⁽⁵⁾⁽⁶⁾	4/1/2025	102,400			102,400			LIBOR + 1.25%	2.84%	3/1/2023
Term loan^(5)(7)(8)	8/15/2026	415,000			—			LIBOR + 1.10%	2.58%	8/1/2025
Term loan⁽⁵⁾⁽⁷⁾	9/19/2026	400,000			—			LIBOR + 1.15%	2.44%	9/1/2024
Term loan^(5)(7)(9)	9/26/2026	200,000			—			LIBOR + 1.20%	2.77%	10/1/2024
Fannie Mae loan⁽⁵⁾	6/1/2027	550,000			550,000			LIBOR + 1.37%	3.16%	6/1/2022
Fannie Mae loan⁽⁵⁾⁽⁷⁾	6/1/2029	255,000			—			LIBOR + 0.98%	3.26%	6/1/2027
Fannie Mae loan^(5)(7)(10)	6/1/2029	125,000			—			LIBOR + 0.98%	2.55%	6/1/2027
Term loan⁽¹¹⁾	6/1/2038	31,046			31,582			N/A	4.55%	N/A
Revolving credit facility⁽¹²⁾	8/21/2023	—			105,000			LIBOR + 1.15%	N/A	N/A
Total Wholly Owned Subsidiary Debt		3,073,446			3,183,982

Consolidated JVs
Term loan⁽⁵⁾	2/28/2023	580,000			580,000			LIBOR + 1.40%	2.37%	3/1/2021
Term loan⁽⁵⁾	12/19/2024	400,000			400,000			LIBOR + 1.30%	3.47%	1/1/2023
Term loan^{(5) (7)}	6/1/2029	160,000			—			LIBOR + 0.98%	3.25%	7/1/2027
Total Consolidated Debt⁽¹³⁾		4,213,446			4,163,982
Unamortized loan premium, net		3,832			3,986
Unamortized deferred loan costs, net		(40,311		)	(33,938		)
Total Consolidated Debt, net		$	4,176,967		$	4,134,030

_______________________________________________________________________


(1)	Maturity dates include the effect of extension options.


(2)	Effective rate as of September 30, 2019. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 10 for details of our interest rate swaps. See below for details of our loan costs.


(3)	These loans were paid off during the nine months ended September 30, 2019.


(4)	We paid this loan off on November 1, 2019. See Note 17.


(5)	The loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.


(6)	The effective rate will decrease to 2.76% on March 2, 2020.


(7)	These loans were closed during the nine months ended September 30, 2019.


(8)	Effective rate will increase to 3.07% on April 1, 2020.


(9)	Effective rate will decrease to 2.36% on July 1, 2020.


(10)	Effective rate will increase to 3.25% on December 1, 2020.


(11)	Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.


(12)	In March 2019, we renewed our $400.0 million revolving credit facility, releasing two previously encumbered properties, lowering the borrowing rate and unused facility fees, and extending the maturity date. Unused commitment fees range from 0.10% to 0.15%. The loan agreement includes a zero-percent LIBOR floor.


(13)	The table does not include our unconsolidated Funds' loans - see Note 16. See Note 13 for our fair value disclosures.

Debt Statistics

The following table summarizes our consolidated fixed and floating rate debt:



(In thousands)	Principal Balance as of September 30, 2019		Principal Balance as of December 31, 2018

Aggregate swapped to fixed rate loans	$	4,182,400	$	3,882,400
Aggregate fixed rate loans	31,046		31,582
Aggregate floating rate loans	—		250,000
Total Debt	$	4,213,446	$	4,163,982

The following table summarizes certain consolidated debt statistics as of September 30, 2019:



Statistics for consolidated loans with interest fixed under the terms of the loan or a swap

Principal balance (in billions)		$4.21
Weighted average remaining life (including extension options)		6.2 years
Weighted average remaining fixed interest period		3.9 years
Weighted average annual interest rate		3.00%

Schedule of Future Minimum Principal Payments Due on Secured Notes Payable and Revolving Credit Facility

At September 30, 2019, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows:



Twelve months ending September 30:	Excluding Maturity Extension Options		Including Maturity Extension Options⁽¹⁾

	(In thousands)

2020	$	743	$	743
2021	778		778
2022	300,814		814
2023	1,275,852		940,852
2024	891		300,891
Thereafter	2,634,368		2,969,368
Total future principal payments	$	4,213,446	$	4,213,446

____________________________________________


(1)	Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.

Schedule of Loan Costs and Amortization of Deferred Loan Costs

The table below presents loan costs, which are included in Interest expense in our consolidated statements of operations:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Loan costs expensed	$	1,751	$	—	$	1,751	$	—
Deferred loan costs written off	4,416		7		4,992		411
Deferred loan cost amortization	1,807		1,999		5,611		5,874
Total	$	7,974	$	2,006	$	12,354	$	6,285

EPS (Tables)

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The table below presents the calculation of basic and diluted EPS:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Numerator (In thousands):
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451
Allocation to participating securities: Unvested LTIP Units	(87		)	(149		)	(350		)	(442		)
Net income attributable to common stockholders - basic and diluted	$	22,401		$	30,412		$	84,805		$	90,009

Denominator (In thousands):
Weighted average shares of common stock outstanding - basic	175,278			169,926			172,684			169,815
Effect of dilutive securities:Stock options⁽¹⁾	—			5			—			13
Weighted average shares of common stock and common stock equivalents outstanding - diluted	175,278			169,931			172,684			169,828

Net income per common share - basic	$	0.13		$	0.18		$	0.49		$	0.53

Net income per common share - diluted	$	0.13		$	0.18		$	0.49		$	0.53

____________________________________________________


(1)	There were no outstanding options during the nine months ended September 30, 2019. The following securities were excluded from the calculation of diluted EPS during the periods noted because including them for those periods would be anti-dilutive to the calculation:



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2019	2018	2019	2018

OP Units	26,211	26,630	26,278	26,736
Vested LTIP Units	1,838	812	1,833	807

Secured Notes Payable and Revolving Credit Facility, Net

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Secured Notes Payable and Revolving Credit Facility, Net



Description	Maturity Date⁽¹⁾	Principal Balance as of September 30, 2019			Principal Balance as of December 31, 2018			Variable Interest Rate	Fixed Interest Rate⁽²⁾	Swap Maturity Date

		(In thousands)

Wholly Owned Subsidiaries
Fannie Mae loan⁽³⁾	—	$	—		$	145,000		—	—	—
Fannie Mae loan⁽³⁾	—	—			115,000			—	—	—
Term loan⁽³⁾	—	—			220,000			—	—	—
Term loan⁽³⁾	—	—			340,000			—	—	—
Term loan⁽³⁾	—	—			400,000			—	—	—
Term loan⁽³⁾	—	—			180,000			—	—	—
Term loan⁽⁴⁾⁽⁵⁾	6/23/2023	360,000			360,000			LIBOR + 1.55%	2.57%	7/1/2021
Term loan⁽⁵⁾	1/1/2024	300,000			300,000			LIBOR + 1.55%	3.46%	1/1/2022
Term loan⁽⁵⁾	3/3/2025	335,000			335,000			LIBOR + 1.30%	3.84%	3/1/2023
Fannie Mae loan⁽⁵⁾⁽⁶⁾	4/1/2025	102,400			102,400			LIBOR + 1.25%	2.84%	3/1/2023
Term loan^(5)(7)(8)	8/15/2026	415,000			—			LIBOR + 1.10%	2.58%	8/1/2025
Term loan⁽⁵⁾⁽⁷⁾	9/19/2026	400,000			—			LIBOR + 1.15%	2.44%	9/1/2024
Term loan^(5)(7)(9)	9/26/2026	200,000			—			LIBOR + 1.20%	2.77%	10/1/2024
Fannie Mae loan⁽⁵⁾	6/1/2027	550,000			550,000			LIBOR + 1.37%	3.16%	6/1/2022
Fannie Mae loan⁽⁵⁾⁽⁷⁾	6/1/2029	255,000			—			LIBOR + 0.98%	3.26%	6/1/2027
Fannie Mae loan^(5)(7)(10)	6/1/2029	125,000			—			LIBOR + 0.98%	2.55%	6/1/2027
Term loan⁽¹¹⁾	6/1/2038	31,046			31,582			N/A	4.55%	N/A
Revolving credit facility⁽¹²⁾	8/21/2023	—			105,000			LIBOR + 1.15%	N/A	N/A
Total Wholly Owned Subsidiary Debt		3,073,446			3,183,982

Consolidated JVs
Term loan⁽⁵⁾	2/28/2023	580,000			580,000			LIBOR + 1.40%	2.37%	3/1/2021
Term loan⁽⁵⁾	12/19/2024	400,000			400,000			LIBOR + 1.30%	3.47%	1/1/2023
Term loan^{(5) (7)}	6/1/2029	160,000			—			LIBOR + 0.98%	3.25%	7/1/2027
Total Consolidated Debt⁽¹³⁾		4,213,446			4,163,982
Unamortized loan premium, net		3,832			3,986
Unamortized deferred loan costs, net		(40,311		)	(33,938		)
Total Consolidated Debt, net		$	4,176,967		$	4,134,030

_______________________________________________________________________


(1)	Maturity dates include the effect of extension options.


(2)	Effective rate as of September 30, 2019. Includes the effect of interest rate swaps and excludes the effect of prepaid loan fees. See Note 10 for details of our interest rate swaps. See below for details of our loan costs.


(3)	These loans were paid off during the nine months ended September 30, 2019.


(4)	We paid this loan off on November 1, 2019. See Note 17.


(5)	The loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.


(6)	The effective rate will decrease to 2.76% on March 2, 2020.


(7)	These loans were closed during the nine months ended September 30, 2019.


(8)	Effective rate will increase to 3.07% on April 1, 2020.


(9)	Effective rate will decrease to 2.36% on July 1, 2020.


(10)	Effective rate will increase to 3.25% on December 1, 2020.


(11)	Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.


(12)	In March 2019, we renewed our $400.0 million revolving credit facility, releasing two previously encumbered properties, lowering the borrowing rate and unused facility fees, and extending the maturity date. Unused commitment fees range from 0.10% to 0.15%. The loan agreement includes a zero-percent LIBOR floor.


(13)	The table does not include our unconsolidated Funds' loans - see Note 16. See Note 13 for our fair value disclosures.

Debt Statistics

The following table summarizes our consolidated fixed and floating rate debt:



(In thousands)	Principal Balance as of September 30, 2019		Principal Balance as of December 31, 2018

Aggregate swapped to fixed rate loans	$	4,182,400	$	3,882,400
Aggregate fixed rate loans	31,046		31,582
Aggregate floating rate loans	—		250,000
Total Debt	$	4,213,446	$	4,163,982

The following table summarizes certain consolidated debt statistics as of September 30, 2019:



Statistics for consolidated loans with interest fixed under the terms of the loan or a swap

Principal balance (in billions)		$4.21
Weighted average remaining life (including extension options)		6.2 years
Weighted average remaining fixed interest period		3.9 years
Weighted average annual interest rate		3.00%

Future Principal Payments

At September 30, 2019, the minimum future principal payments due on our consolidated secured notes payable and revolving credit facility were as follows:



Twelve months ending September 30:	Excluding Maturity Extension Options		Including Maturity Extension Options⁽¹⁾

	(In thousands)

2020	$	743	$	743
2021	778		778
2022	300,814		814
2023	1,275,852		940,852
2024	891		300,891
Thereafter	2,634,368		2,969,368
Total future principal payments	$	4,213,446	$	4,213,446

____________________________________________


(1)	Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.

Loan Costs



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Loan costs expensed	$	1,751	$	—	$	1,751	$	—
Deferred loan costs written off	4,416		7		4,992		411
Deferred loan cost amortization	1,807		1,999		5,611		5,874
Total	$	7,974	$	2,006	$	12,354	$	6,285

Ground Lease

9 Months Ended

Sep. 30, 2019

Lessee Disclosure [Abstract]

Ground Lease



Twelve months ending September 30:	(In thousands)

2020	$	733
2021	733
2022	733
2023	733
2024	733
Thereafter	45,628
Total future minimum lease payments	$	49,293

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Common Stock, par value (usd per share)	$ 0.01	$ 0.01
Common Stock, authorized (in shares)	750,000,000	750,000,000
Common Stock, outstanding (in shares)	175,348,468	170,214,809

EPS

9 Months Ended

Sep. 30, 2019

Earnings Per Share [Abstract]

EPS



	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Numerator (In thousands):
Net income attributable to common stockholders	$	22,488		$	30,561		$	85,155		$	90,451
Allocation to participating securities: Unvested LTIP Units	(87		)	(149		)	(350		)	(442		)
Net income attributable to common stockholders - basic and diluted	$	22,401		$	30,412		$	84,805		$	90,009

Denominator (In thousands):
Weighted average shares of common stock outstanding - basic	175,278			169,926			172,684			169,815
Effect of dilutive securities:Stock options⁽¹⁾	—			5			—			13
Weighted average shares of common stock and common stock equivalents outstanding - diluted	175,278			169,931			172,684			169,828

Net income per common share - basic	$	0.13		$	0.18		$	0.49		$	0.53

Net income per common share - diluted	$	0.13		$	0.18		$	0.49		$	0.53

____________________________________________________


(1)	There were no outstanding options during the nine months ended September 30, 2019. The following securities were excluded from the calculation of diluted EPS during the periods noted because including them for those periods would be anti-dilutive to the calculation:



	Three Months Ended September 30,		Nine Months Ended September 30,
(In thousands)	2019	2018	2019	2018

OP Units	26,211	26,630	26,278	26,736
Vested LTIP Units	1,838	812	1,833	807

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating Activities
Net income	$ 96,069	$ 105,080
Adjustments to reconcile net income to net cash provided by operating activities:
Income, including depreciation, from unconsolidated Funds	(5,589)	(4,522)
Depreciation and amortization	248,876	219,944
Net accretion of acquired lease intangibles	(12,519)	(17,243)
Straight-line rent	(9,298)	(12,715)
Write-off of uncollectible amounts	(742)	1,565
Deferred loan costs amortized and written off	10,603	6,285
Amortization of loan premium	(153)	(153)
Amortization of stock-based compensation	7,395	8,879
Operating distributions from unconsolidated Funds	5,589	4,522
Change in working capital components:
Tenant receivables	0	(3,625)
Interest payable, accounts payable and deferred revenue	20,284	22,349
Security deposits	305	359
Other assets	(1,852)	1,118
Net cash provided by operating activities	358,968	331,843
Investing Activities
Capital expenditures for improvements to real estate	(128,175)	(115,963)
Capital expenditures for developments	(44,756)	(48,507)
Insurance recoveries for damage to real estate	1,406	0
Property acquisition	(365,875)	0
Acquisition of additional interests in unconsolidated Funds	(7,518)	(9,379)
Capital distributions from unconsolidated Funds	5,851	5,866
Net cash used in investing activities	(539,067)	(167,983)
Financing Activities
Proceeds from borrowings	1,782,557	597,000
Repayment of borrowings	(1,733,092)	(595,151)
Loan cost payments	(16,555)	(2,964)
Contributions from noncontrolling interests in consolidated JVs	163,556	0
Distributions paid to noncontrolling interests	(47,256)	(39,122)
Dividends paid to common stockholders	(134,076)	(127,348)
Taxes paid on exercise of stock options	0	(450)
Repurchase of OP Units	(734)	(108)
Proceeds from issuance of common stock, net	200,982	0
Net cash provided by (used in) financing activities	215,382	(168,143)
Increase (decrease) in cash and cash equivalents and restricted cash	35,283	(4,283)
Cash and cash equivalents and restricted cash - beginning balance	146,348	176,766
Cash and cash equivalents and restricted cash - ending balance	181,631	172,483
Operating Activities
Cash paid for interest, net of capitalized interest	98,424	93,455
Capitalized interest paid	2,805	2,408
Non-cash Investing Transactions
Accrual for additions to real estate and developments	6,641	24,681
Capitalized stock-based compensation for improvements to real estate and developments	1,630	1,460
Removal of fully depreciated and amortized tenant improvements and lease intangibles	62,825	32,332
Removal of fully amortized acquired lease intangible assets	1,874	1,180
Removal of fully accreted acquired lease intangible liabilities	28,152	10,515
Property acquisition accrual	10	0
Recognition of ground lease right-of-use asset - Adoption of ASU 2016-02	10,885
Above-market ground lease intangible liability offset against right-of-use asset - Adoption of ASU 2016-02	3,408
Recognition of ground lease liability - Adoption of ASU 2016-02	10,885
Non-cash Financing Transactions
Gain recorded in AOCI - Adoption of ASU 2017-12 - consolidated derivatives	0	211
Gain (loss) recorded in AOCI - derivatives	(116,251)	70,806
Accrual for deferred loan costs	1,862	136
Non-cash contributions from noncontrolling interests in consolidated JVs	12,444	0
Non-cash distributions to noncontrolling interests	12,444	0
Dividends declared	135,411	127,440
Exchange of OP units for common stock	3,209	5,720
Unconsolidated Funds
Non-cash Financing Transactions
Gain (loss) recorded in AOCI - derivatives	$ (7,995)	$ 8,087

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2019 segment
Segment Reporting [Abstract]
Number of reportable business segments	2

Commitments, Contingencies and Guarantees - Narrative (Details) ft² in Thousands, $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) ft² apartment building
Other Commitments [Line Items]
Number of buildings containing asbestos \| building	28
Unconsolidated Funds
Other Commitments [Line Items]
Number of buildings containing asbestos \| building	4
Development Projects
Other Commitments [Line Items]
Aggregate remaining contractual commitment \| $	$ 184.3
Development Projects \| California
Other Commitments [Line Items]
Number of apartments under construction \| apartment	376
Development Projects \| Hawaii
Other Commitments [Line Items]
Number of apartments under construction \| apartment	500
Square footage of office tower conversion (sq ft) \| ft²	490
Repositionings, Capital Expenditure Projects, and Tenant Improvements
Other Commitments [Line Items]
Aggregate remaining contractual commitment \| $	$ 24.7

Secured Notes Payable and Revolving Credit Facility, Net - Schedule of Future Principal Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Excluding Maturity Extension Options
2020	$ 743
2021	778
2022	300,814
2023	1,275,852
2024	891
Thereafter	2,634,368
Total future principal payments	4,213,446	$ 4,163,982
Including Maturity Extension Options
2020	743
2021	778
2022	814
2023	940,852
2024	300,891
Thereafter	2,969,368
Total future principal payments	$ 4,213,446	$ 4,163,982

Investments in Unconsolidated Funds - Summary of Statement of Operations for Investments in Unconsolidated Funds (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Real Estate Investments, Net [Abstract]
Total revenues	$ 62,239	$ 58,935
Operating income	18,033	16,870
Net income	$ 5,759	$ 4,333

Interest Payable, Accounts Payable and Deferred Revenue (Tables)

9 Months Ended

Sep. 30, 2019

Accounts Payable and Accrued Liabilities [Abstract]

Schedule of Interest Payable, Accounts Payable and Deferred Revenue



(In thousands)	September 30, 2019		December 31, 2018

Interest payable	$	9,537	$	10,657
Accounts payable and accrued liabilities	79,749		75,111
Deferred revenue	45,658		44,386
Total interest payable, accounts payable and deferred revenue	$	134,944	$	130,154

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Value and Carrying Value of Liabilities

The table below presents the estimated fair value and carrying value of our secured notes payable (excluding our revolving credit facility), the carrying value includes unamortized loan premium and excludes unamortized deferred loan fees:



(In thousands)	September 30, 2019		December 31, 2018

Fair value	$	4,237,849	$	4,087,979
Carrying value	$	4,213,446	$	4,062,968

The table below presents the estimated fair value and carrying value of our ground lease liability:



(In thousands)	September 30, 2019

Fair value	$	12,760
Carrying value	$	10,884

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The table below presents the estimated fair value of our derivatives:



(In thousands)	September 30, 2019		December 31, 2018
Derivative Assets:
Fair value - consolidated derivatives⁽¹⁾	$	11,925	$	73,414
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	1,034	$	12,228

Derivative Liabilities:
Fair value - consolidated derivatives⁽¹⁾	$	78,111	$	1,530
Fair value - unconsolidated Funds' derivatives⁽²⁾	$	4,009	$	—

____________________________________________________


(1)	Consolidated derivatives, which include 100%, not our pro-rata share, of our consolidated JVs' derivatives, are included in interest rate contracts in our consolidated balance sheets. The fair values exclude accrued interest which is included in interest payable in the consolidated balance sheets.

(2)

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Investment in real estate:
Land	$ 1,100,412	$ 1,065,099
Buildings and improvements	8,454,991	7,995,203
Tenant improvements and lease intangibles	850,124	840,653
Property under development	85,288	129,753
Investment in real estate, gross	10,490,815	10,030,708
Less: accumulated depreciation and amortization	(2,433,974)	(2,246,887)
Investment in real estate, net	8,056,841	7,783,821
Ground lease right-of-use asset	7,481
Cash and cash equivalents	181,510	146,227
Tenant receivables	5,113	4,371
Deferred rent receivables	134,132	124,834
Acquired lease intangible assets, net	2,877	3,251
Interest rate contract assets	11,925	73,414
Investment in unconsolidated Funds	102,280	111,032
Other assets	18,736	14,759
Total Assets	8,520,895	8,261,709
Liabilities
Secured notes payable and revolving credit facility, net	4,176,967	4,134,030
Ground lease liability	10,884
Interest payable, accounts payable and deferred revenue	134,944	130,154
Security deposits	51,945	50,733
Acquired lease intangible liabilities, net	38,384	52,569
Interest rate contract liabilities	78,111	1,530
Dividends payable	45,598	44,263
Total liabilities	4,536,833	4,413,279
Douglas Emmett, Inc. stockholders' equity:
Common Stock, $0.01 par value, 750,000,000 authorized, 175,348,468 and 170,214,809 outstanding at September 30, 2019 and December 31, 2018, respectively	1,753	1,702
Additional paid-in capital	3,486,025	3,282,316
Accumulated other comprehensive (loss) income	(48,878)	53,944
Accumulated deficit	(988,030)	(935,630)
Total Douglas Emmett, Inc. stockholders' equity	2,450,870	2,402,332
Noncontrolling interests	1,533,192	1,446,098
Total equity	3,984,062	3,848,430
Total Liabilities and Equity	$ 8,520,895	$ 8,261,709

Equity

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Equity

Transactions

Noncontrolling Interests

Changes in our Ownership Interest in our Operating Partnership

The table below presents the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Net income attributable to common stockholders	$	85,155		$	90,451

Transfers from noncontrolling interests:
Exchange of OP Units with noncontrolling interests	3,209			5,720
Repurchase of OP Units from noncontrolling interests	(431		)	(59		)
Net transfers from noncontrolling interests	2,778			5,661

Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	87,933		$	96,112

AOCI Reconciliation⁽¹⁾

The table below presents a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges:



	Nine Months Ended September 30,
(In thousands)	2019			2018

Beginning balance	$	53,944		$	43,099
Adoption of ASU 2017-12 - cumulative opening balance adjustment	—			211
Consolidated derivatives:
Other comprehensive (loss) income before reclassifications	(116,251		)	70,806
Reclassification of gains from AOCI to Interest Expense	(22,202		)	(5,316		)
Unconsolidated Funds' derivatives (our share)⁽²⁾:
Other comprehensive (loss) income before reclassifications	(7,995		)	8,087
Reclassification of gains from AOCI to Income, including depreciation, from unconsolidated Funds	(1,652		)	(383		)
Net current period OCI	(148,100		)	73,405
OCI attributable to noncontrolling interests	45,278			(21,861		)
OCI attributable to common stockholders	(102,822		)	51,544

Ending balance	$	(48,878	)	$	94,643

___________________________________________________


(1)	See Note 10 for the details of our derivatives and Note 13 for our derivative fair value disclosures.


(2)	We calculate our share by multiplying the total amount for each Fund by our equity interest in the respective Fund.

Equity Compensation



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2019		2018		2019		2018

Stock-based compensation expense, net	$	2,382	$	2,932	$	7,395	$	8,879
Capitalized stock-based compensation	$	622	$	512	$	1,630	$	1,460
Intrinsic value of options exercised	$	—	$	393	$	—	$	1,196

Consolidated Statements of Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	AOCI	Accumulated Deficit	Noncontrolling Interests
Dividends declared per common share (USD Per Share)	$ 0.75
Beginning balance (in shares) at Dec. 31, 2017		169,565,000
Beginning balance at Dec. 31, 2017	$ 3,902,049	$ 1,696	$ 3,272,539	$ 43,099	$ (879,810)	$ 1,464,525
Stockholders' Equity [Roll Forward]
Exchange of OP units for common stock (in shares)	352,000	342,000
Exchange of OP units for common stock		$ 3	5,717			(5,720)
Net income	$ 105,080				90,451	14,629
Cash flow hedge adjustments	73,405			51,333		21,861
Cash flow hedge fair value adjustments	$ 73,194
Exercise of stock options (in shares)	48,000	21,000
Repurchase of OP Units with cash	$ (108)		(59)			(49)
Taxes paid on exercise of stock options	(450)		(450)
Dividends	(127,440)				(127,440)
Distributions	(39,122)					(39,122)
Stock-based compensation	10,338					10,338
Ending balance (in shares) at Sep. 30, 2018		169,928,000
Ending balance at Sep. 30, 2018	$ 3,923,541	$ 1,699	3,277,747	94,643	(917,010)	1,466,462
Dividends declared per common share (USD Per Share)	$ 0.25
Beginning balance (in shares) at Jun. 30, 2018		169,921,000
Beginning balance at Jun. 30, 2018	$ 3,930,286	$ 1,699	3,277,643	87,486	(905,085)	1,468,543
Stockholders' Equity [Roll Forward]
Exchange of OP units for common stock			240			(240)
Net income	35,416				30,561	4,855
Cash flow hedge adjustments	10,042			7,157		2,885
Cash flow hedge fair value adjustments	10,042
Exercise of stock options (in shares)		7,000
Taxes paid on exercise of stock options	(136)		(136)
Dividends	(42,486)				(42,486)
Distributions	(13,007)					(13,007)
Stock-based compensation	3,426					3,426
Ending balance (in shares) at Sep. 30, 2018		169,928,000
Ending balance at Sep. 30, 2018	$ 3,923,541	$ 1,699	3,277,747	94,643	(917,010)	1,466,462
Dividends declared per common share (USD Per Share)	$ 0.78
Beginning balance (in shares) at Dec. 31, 2018	170,214,809	170,215,000
Beginning balance at Dec. 31, 2018	$ 3,848,430	$ 1,702	3,282,316	53,944	(935,630)	1,446,098
Stockholders' Equity [Roll Forward]
Exchange of OP units for common stock (in shares)	201,000	201,000
Exchange of OP units for common stock		$ 2	3,207			(3,209)
Net income	$ 96,069				85,155	10,914
Cash flow hedge adjustments	$ (148,100)			(102,822)		(45,278)
Issuance of common stock, net (in shares)	4,900,000	4,932,000
Issuance of common stock, net	$ 200,982	$ 49	200,933
Repurchase of OP Units with cash	(734)		(431)			(303)
Contributions	176,000					176,000
Dividends	(135,411)				(135,411)
Distributions	(59,700)					(59,700)
Stock-based compensation	$ 9,025					9,025
Ending balance (in shares) at Sep. 30, 2019	175,348,468	175,348,000
Ending balance at Sep. 30, 2019	$ 3,984,062	$ 1,753	3,486,025	(48,878)	(988,030)	1,533,192
Dividends declared per common share (USD Per Share)	$ 0.26
Beginning balance (in shares) at Jun. 30, 2019		175,223,000
Beginning balance at Jun. 30, 2019	$ 4,052,360	$ 1,752	3,484,180	(25,853)	(964,927)	1,557,208
Stockholders' Equity [Roll Forward]
Exchange of OP units for common stock (in shares)		125,000
Exchange of OP units for common stock		$ 1	1,985			(1,986)
Net income	23,421				22,488	933
Cash flow hedge adjustments	(33,179)			(23,025)		(10,154)
Repurchase of OP Units with cash	(227)		(140)			(87)
Dividends	(45,591)				(45,591)
Distributions	(15,726)					(15,726)
Stock-based compensation	$ 3,004					3,004
Ending balance (in shares) at Sep. 30, 2019	175,348,468	175,348,000
Ending balance at Sep. 30, 2019	$ 3,984,062	$ 1,753	$ 3,486,025	$ (48,878)	$ (988,030)	$ 1,533,192

Other Assets

9 Months Ended

Sep. 30, 2019

Other Assets [Abstract]

Other Assets



(In thousands)	September 30, 2019		December 31, 2018

Restricted cash	$	121	$	121
Prepaid expenses	10,750		7,830
Other indefinite-lived intangibles	1,988		1,988
Furniture, fixtures and equipment, net	2,307		1,101
Other	3,570		3,719
Total other assets	$	18,736	$	14,759

Investment in Real Estate

9 Months Ended

Sep. 30, 2019

Asset Acquisition [Abstract]

Investment in Real Estate



(In thousands, except number of units)	The Glendon

Submarket	West Los Angeles
Acquisition date	June 7, 2019
Contract price	$	365,100
Number of multifamily units	350
Retail square footage	50

Investment in real estate:
Land	$	32,773
Buildings and improvements	333,624
Tenant improvements and lease intangibles	2,301
Acquired above- and below-market leases, net	(2,114		)
Net assets and liabilities acquired	$	366,584

Overview (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Real Estate Properties

As of September 30, 2019, our portfolio (not including two parcels of land from which we receive rent under ground leases), consisted of the following properties (including ancillary retail space):



	Consolidated Portfolio	Total Portfolio
Office
Wholly-owned properties	53	53
Consolidated JV properties	11	11
Unconsolidated Fund properties	—	8
	64	72

Multifamily
Wholly-owned properties	10	10
Consolidated JV properties	1	1
	11	11

Total	75	83

Future Minimum Lease Rental Receipts

9 Months Ended

Sep. 30, 2019

Lessor Disclosure [Abstract]

Future Minimum Lease Rental Receipts



Twelve months ending September 30:	(In thousands)

2020	$	603,132
2021	529,062
2022	442,362
2023	357,131
2024	273,685
Thereafter	673,833
Total future minimum base rentals⁽¹⁾	$	2,879,205

_____________________________________________________

(1)

EPS - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income attributable to common stockholders	$ 22,488	$ 30,561	$ 85,155	$ 90,451
Allocation to participating securities: Unvested LTIP Units	(87)	(149)	(350)	(442)
Net income attributable to common stockholders - basic	$ 22,401	$ 30,412	$ 84,805	$ 90,009
Weighted average shares of common stock outstanding - basic (in shares)	175,278,000	169,926,000	172,684,000	169,815,000
Effect of dilutive securities: Stock options (in shares)	0	5,000	0	13,000
Weighted average shares of common stock and common stock equivalents outstanding - diluted (in shares)	175,278,000	169,931,000	172,684,000	169,828,000
Net income per common share – basic (usd per share)	$ 0.13	$ 0.18	$ 0.49	$ 0.53
Net income per common share – diluted (usd per share)	$ 0.13	$ 0.18	$ 0.49	$ 0.53
Options outstanding (shares)	0		0
OP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares)	26,211,000	26,630,000	26,278,000	26,736,000
Vested LTIP Units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares)	1,838,000	812,000	1,833,000	807,000

Equity - Narrative (Details) - USD ($)			3 Months Ended	9 Months Ended
Equity - Narrative (Details) - USD ($)	Jun. 28, 2019	Jun. 07, 2019	Sep. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Number common shares issued in exchange for equal number of OP Units (shares)				201,000	352,000
Number of OP units and fully-vested LTIP Units redeemed (shares)				19,000	3,000
Cash paid for repurchase OP Units			$ 227,000	$ 734,000	$ 108,000
Shares issued under ATM program (shares)				4,900,000
Net proceeds from issuance of common stock				$ 201,200,000
Shares of common stock issued for exercise of stock options (shares)					21,000
Stock options exercised (shares)					48,000
Contract price for purchased property		$ 365,100,000
Capital contribution to consolidated JV	$ 44,000,000.0
Noncontrolling interests contributions to consolidated JV	$ 176,000,000.0
Outstanding common stock (in shares)			175,348,468	175,348,468		170,214,809
Number of shares of common stock issued upon redemption of one OP unit (shares)				1
Consolidated JV
Schedule of Equity Method Investments [Line Items]
Capital interest in consolidated JV (percent)	20.00%
Operating Partnership
Schedule of Equity Method Investments [Line Items]
Noncontrolling interests ownership in the Operating Partnership (units)			28,000,000.0	28,000,000.0
Noncontrolling interests ownership in the Operating Partnership (percent)			14.00%	14.00%
Secured Debt \| Term Loan at 3.25% Jun 01 2029
Schedule of Equity Method Investments [Line Items]
Debt instrument face amount		$ 160,000,000.0

Derivative Contracts - Credit-risk related Contingent Features (Details) - Interest Rate Swap - Derivatives Designated as Cash Flow Hedges - Cash Flow Hedging - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Fair value derivatives in net liability position	$ 80,832	$ 1,681
Percent of notional amount related to the Fund	100.00%
Unconsolidated Funds
Derivative Instruments, Gain (Loss) [Line Items]
Fair value derivatives in net liability position	$ 3,970	$ 0
Percent of notional amount related to the Fund	100.00%

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jan. 01, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Accounting Policies [Abstract]
Office parking revenue		$ 27,300	$ 26,000	$ 80,500	$ 76,800
Office parking receivables		1,200		1,200		$ 1,100
New Accounting Pronouncements [Line Items]
Leasing costs related to tenant leases expensed		1,000		3,100
Lease liability		10,884		10,884
Above-market ground lease intangible liability offset against right-of-use asset				3,408
Right-of-use asset		$ 7,481		$ 7,481
ASU No. 2016-02
New Accounting Pronouncements [Line Items]
Cumulative adjustment upon adoption of new accounting standard	$ 2,499
Lease liability	10,900
Above-market ground lease intangible liability offset against right-of-use asset	3,400
Right-of-use asset	7,500
Accumulated Deficit \| ASU No. 2016-02
New Accounting Pronouncements [Line Items]
Cumulative adjustment upon adoption of new accounting standard	2,144
Noncontrolling Interests \| ASU No. 2016-02
New Accounting Pronouncements [Line Items]
Cumulative adjustment upon adoption of new accounting standard	$ 355

Acquired Lease Intangibles - Summary of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired lease intangible assets, net	$ 2,877	$ 3,251
Acquired lease intangible liabilities, net	38,384	52,569
Above Market Tenant Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, assets	3,745	5,595
Accumulated amortization	(1,800)	(3,289)
Below Market Tenant Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, liabilities	86,159	112,175
Accumulated accretion	(47,775)	(63,013)
Above Market Ground Leases
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, assets	1,152	1,152
Accumulated amortization	(220)	(207)
Off-market lease, liabilities	0	4,017
Accumulated accretion	$ 0	$ (610)