000136425012/312020Q3falseus-gaap:AccountingStandardsUpdate201602Memberus-gaap:ParkingMemberus-gaap:ParkingMemberus-gaap:ParkingMemberus-gaap:ParkingMemberus-gaap:PrepaidExpenseAndOtherAssetsus-gaap:PrepaidExpenseAndOtherAssets00013642502020-01-012020-09-30xbrli:shares00013642502020-10-30iso4217:USD00013642502020-09-3000013642502019-12-31iso4217:USDxbrli:shares0001364250nysedei:RentalRevenueAndTenantRecoveryRevenueMembernysedei:OfficeSegmentMember2020-07-012020-09-300001364250nysedei:RentalRevenueAndTenantRecoveryRevenueMembernysedei:OfficeSegmentMember2019-07-012019-09-300001364250nysedei:RentalRevenueAndTenantRecoveryRevenueMembernysedei:OfficeSegmentMember2020-01-012020-09-300001364250nysedei:RentalRevenueAndTenantRecoveryRevenueMembernysedei:OfficeSegmentMember2019-01-012019-09-300001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2020-07-012020-09-300001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2019-07-012019-09-300001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2020-01-012020-09-300001364250nysedei:OfficeSegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2019-01-012019-09-300001364250nysedei:OfficeSegmentMember2020-07-012020-09-300001364250nysedei:OfficeSegmentMember2019-07-012019-09-300001364250nysedei:OfficeSegmentMember2020-01-012020-09-300001364250nysedei:OfficeSegmentMember2019-01-012019-09-300001364250nysedei:MultifamilySegmentMembernysedei:RentalRevenueMember2020-07-012020-09-300001364250nysedei:MultifamilySegmentMembernysedei:RentalRevenueMember2019-07-012019-09-300001364250nysedei:MultifamilySegmentMembernysedei:RentalRevenueMember2020-01-012020-09-300001364250nysedei:MultifamilySegmentMembernysedei:RentalRevenueMember2019-01-012019-09-300001364250nysedei:MultifamilySegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2020-07-012020-09-300001364250nysedei:MultifamilySegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2019-07-012019-09-300001364250nysedei:MultifamilySegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2020-01-012020-09-300001364250nysedei:MultifamilySegmentMembernysedei:ParkingRevenueAndOtherIncomeMember2019-01-012019-09-300001364250nysedei:MultifamilySegmentMember2020-07-012020-09-300001364250nysedei:MultifamilySegmentMember2019-07-012019-09-300001364250nysedei:MultifamilySegmentMember2020-01-012020-09-300001364250nysedei:MultifamilySegmentMember2019-01-012019-09-3000013642502020-07-012020-09-3000013642502019-07-012019-09-3000013642502019-01-012019-09-300001364250us-gaap:CommonStockMember2020-06-300001364250us-gaap:CommonStockMember2019-06-300001364250us-gaap:CommonStockMember2019-12-310001364250us-gaap:CommonStockMember2018-12-310001364250us-gaap:CommonStockMember2020-07-012020-09-300001364250us-gaap:CommonStockMember2019-07-012019-09-300001364250us-gaap:CommonStockMember2020-01-012020-09-300001364250us-gaap:CommonStockMember2019-01-012019-09-300001364250us-gaap:CommonStockMember2020-09-300001364250us-gaap:CommonStockMember2019-09-300001364250us-gaap:AdditionalPaidInCapitalMember2020-06-300001364250us-gaap:AdditionalPaidInCapitalMember2019-06-300001364250us-gaap:AdditionalPaidInCapitalMember2019-12-310001364250us-gaap:AdditionalPaidInCapitalMember2018-12-310001364250us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001364250us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001364250us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001364250us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001364250us-gaap:AdditionalPaidInCapitalMember2020-09-300001364250us-gaap:AdditionalPaidInCapitalMember2019-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001364250us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-06-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-06-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2018-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-06-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-07-012020-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-07-012019-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-01-012020-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-01-012019-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2020-09-300001364250us-gaap:AccumulatedDistributionsInExcessOfNetIncomeMember2019-09-300001364250us-gaap:NoncontrollingInterestMember2020-06-300001364250us-gaap:NoncontrollingInterestMember2019-06-300001364250us-gaap:NoncontrollingInterestMember2019-12-310001364250us-gaap:NoncontrollingInterestMember2018-12-310001364250us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300001364250us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-06-300001364250us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001364250us-gaap:NoncontrollingInterestMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001364250us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001364250us-gaap:NoncontrollingInterestMember2019-07-012019-09-300001364250us-gaap:NoncontrollingInterestMember2020-01-012020-09-300001364250us-gaap:NoncontrollingInterestMember2019-01-012019-09-300001364250us-gaap:NoncontrollingInterestMember2020-09-300001364250us-gaap:NoncontrollingInterestMember2019-09-3000013642502020-06-3000013642502019-06-3000013642502018-12-310001364250srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-06-300001364250srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-06-300001364250srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001364250srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-3100013642502019-09-300001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-01-012020-09-300001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2019-01-012019-09-30utr:sqft0001364250nysedei:WhollyOwnedAndConsolidatedPropertiesMembersrt:OfficeBuildingMember2020-09-30nysedei:unit0001364250nysedei:WhollyOwnedAndConsolidatedPropertiesMembersrt:MultifamilyMember2020-09-30nysedei:land_parcel0001364250nysedei:WhollyOwnedAndConsolidatedPropertiesMember2020-09-300001364250us-gaap:UnconsolidatedPropertiesMembersrt:OfficeBuildingMember2020-09-30nysedei:property0001364250us-gaap:WhollyOwnedPropertiesMembersrt:OfficeBuildingMembersrt:ReportableLegalEntitiesMember2020-09-300001364250us-gaap:WhollyOwnedPropertiesMembersrt:OfficeBuildingMember2020-09-300001364250us-gaap:ConsolidatedPropertiesMembersrt:OfficeBuildingMembersrt:ReportableLegalEntitiesMember2020-09-300001364250us-gaap:ConsolidatedPropertiesMembersrt:OfficeBuildingMember2020-09-300001364250us-gaap:UnconsolidatedPropertiesMembersrt:OfficeBuildingMembersrt:ReportableLegalEntitiesMember2020-09-300001364250srt:OfficeBuildingMembersrt:ReportableLegalEntitiesMember2020-09-300001364250srt:OfficeBuildingMember2020-09-300001364250us-gaap:WhollyOwnedPropertiesMembersrt:MultifamilyMembersrt:ReportableLegalEntitiesMember2020-09-300001364250us-gaap:WhollyOwnedPropertiesMembersrt:MultifamilyMember2020-09-300001364250us-gaap:ConsolidatedPropertiesMembersrt:MultifamilyMembersrt:ReportableLegalEntitiesMember2020-09-300001364250us-gaap:ConsolidatedPropertiesMembersrt:MultifamilyMember2020-09-300001364250srt:MultifamilyMembersrt:ReportableLegalEntitiesMember2020-09-300001364250srt:MultifamilyMember2020-09-300001364250srt:ReportableLegalEntitiesMember2020-09-300001364250srt:SubsidiariesMember2020-09-30nysedei:joint_venture0001364250nysedei:SubsidiariesAndJointVenturesMember2020-09-30xbrli:pure0001364250nysedei:TheGlendonResidentialCommunityMembernysedei:ConsolidatedJointVentureMember2019-06-282019-06-280001364250nysedei:TheGlendonResidentialCommunityMember2019-06-072019-06-070001364250nysedei:TheGlendonResidentialCommunityMember2019-06-070001364250us-gaap:LandMembernysedei:TheGlendonResidentialCommunityMember2019-06-072019-06-070001364250us-gaap:BuildingAndBuildingImprovementsMembernysedei:TheGlendonResidentialCommunityMember2019-06-072019-06-070001364250nysedei:AboveMarketTenantLeasesMember2020-09-300001364250nysedei:AboveMarketTenantLeasesMember2019-12-310001364250nysedei:AboveMarketGroundLeasesMember2020-09-300001364250nysedei:AboveMarketGroundLeasesMember2019-12-310001364250nysedei:BelowMarketTenantLeasesMember2020-09-300001364250nysedei:BelowMarketTenantLeasesMember2019-12-310001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2020-07-012020-09-300001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2019-07-012019-09-300001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2020-01-012020-09-300001364250nysedei:TenantLeaseMembernysedei:OperatingLeaseRevenueMember2019-01-012019-09-300001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2020-07-012020-09-300001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2019-07-012019-09-300001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2020-01-012020-09-300001364250nysedei:AboveMarketGroundLeasesMembernysedei:OfficeParkingAndOtherIncomeMember2019-01-012019-09-300001364250nysedei:PartnershipXMember2020-09-300001364250nysedei:PartnershipXMember2020-01-012020-09-30nysedei:fund0001364250us-gaap:UnconsolidatedPropertiesMember2019-01-012019-09-300001364250nysedei:OpportunityFundMember2019-09-300001364250nysedei:FundXMember2019-09-300001364250nysedei:PartnershipXMember2019-09-300001364250us-gaap:UnconsolidatedPropertiesMembersrt:OfficeBuildingMember2019-09-300001364250nysedei:FundXMember2019-01-012019-09-300001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-09-300001364250us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2019-12-310001364250nysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointFourSixPercentageMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointFourSixPercentageMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointFourSixPercentageMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointFourSixPercentageMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2020-09-300001364250us-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2019-12-310001364250us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithEffectiveAnnualFixedInterestRateAtThreePointEightFourPercentageMembersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Membersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Membersrt:SubsidiariesMember2020-09-300001364250us-gaap:SecuredDebtMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Membersrt:SubsidiariesMember2019-12-310001364250us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembernysedei:FannieMaeLoanWithMaturityDateOfApril12025Membersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:TermLoanAtThreePointZeroSevenPercentageAug152026Memberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:TermLoanAtTwoPointFourFourPercentageSep192026Memberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:TermLoanAtTwoPointSevenSevenPercentageSep262026Memberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanNonrecourseAtTwoPointOneEightPercentageNov2026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanNonrecourseAtTwoPointOneEightPercentageNov2026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanNonrecourseAtTwoPointOneEightPercentageNov2026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250us-gaap:LondonInterbankOfferedRateLIBORMembernysedei:TermLoanNonrecourseAtTwoPointOneEightPercentageNov2026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012027Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012027Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012027Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012027Memberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029BMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029BMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029BMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029BMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtFourPointFiveFivePercentageJun012038Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:TermLoanAtFourPointFiveFivePercentageJun012038Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-09-300001364250nysedei:TermLoanAtFourPointFiveFivePercentageJun012038Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2019-12-310001364250us-gaap:LineOfCreditMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:LineOfCreditMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2020-09-300001364250us-gaap:LineOfCreditMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2019-12-310001364250us-gaap:LineOfCreditMemberus-gaap:LondonInterbankOfferedRateLIBORMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2020-01-012020-09-300001364250srt:SubsidiariesMember2019-12-310001364250nysedei:TermLoanWithMaturityDateOfJuly012024Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2020-09-300001364250nysedei:TermLoanWithMaturityDateOfJuly012024Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2019-12-310001364250nysedei:TermLoanWithMaturityDateOfFebruary282023Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250nysedei:TermLoanWithMaturityDateOfFebruary282023Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2020-09-300001364250nysedei:TermLoanWithMaturityDateOfFebruary282023Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2019-12-310001364250nysedei:TermLoanWithMaturityDateOfFebruary282023Membersrt:AffiliatedEntityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfDecember192024Member2020-01-012020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfDecember192024Member2020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfDecember192024Member2019-12-310001364250srt:AffiliatedEntityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfDecember192024Member2020-01-012020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfMay152027Member2020-01-012020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfMay152027Member2020-09-300001364250srt:AffiliatedEntityMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfMay152027Member2019-12-310001364250srt:AffiliatedEntityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfMay152027Member2020-01-012020-09-300001364250nysedei:TermLoanWithMaturityDateOfJune12029Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250nysedei:TermLoanWithMaturityDateOfJune12029Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2020-09-300001364250nysedei:TermLoanWithMaturityDateOfJune12029Membersrt:AffiliatedEntityMemberus-gaap:SecuredDebtMember2019-12-310001364250nysedei:TermLoanWithMaturityDateOfJune12029Membersrt:AffiliatedEntityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250srt:ScenarioForecastMembernysedei:TermLoanNonrecourseAtTwoPointOneEightPercentageNov2026Memberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2021-07-010001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029BMembersrt:ScenarioForecastMemberus-gaap:SecuredDebtMembersrt:SubsidiariesMember2020-12-010001364250nysedei:TermLoanAtFourPointFiveFivePercentageJun012038Memberus-gaap:SecuredDebtMember2020-01-012020-09-300001364250us-gaap:LineOfCreditMembersrt:MinimumMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2020-01-012020-09-300001364250us-gaap:LineOfCreditMembersrt:MaximumMembernysedei:RevolvingCreditFacilityWithMaturityDate082123Membersrt:SubsidiariesMember2020-01-012020-09-300001364250nysedei:PartnershipXMemberus-gaap:LoansPayableMember2020-01-012020-09-300001364250srt:ScenarioForecastMemberus-gaap:SecuredDebtMembernysedei:TermLoanWithMaturityDateOfMay152027Membersrt:SubsidiariesMember2022-07-010001364250nysedei:EffectiveFixedRateLoansMember2020-09-300001364250nysedei:EffectiveFixedRateLoansMember2019-12-310001364250nysedei:FixedRateLoansMember2020-09-300001364250nysedei:FixedRateLoansMember2019-12-310001364250nysedei:FloatingRateLoansMember2020-09-300001364250nysedei:FloatingRateLoansMember2019-12-310001364250us-gaap:InterestExpenseMember2020-07-012020-09-300001364250us-gaap:InterestExpenseMember2019-07-012019-09-300001364250us-gaap:InterestExpenseMember2020-01-012020-09-300001364250us-gaap:InterestExpenseMember2019-01-012019-09-30nysedei:instrument0001364250us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001364250us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001364250nysedei:InterestRateSwapAccretingPrincipalMemberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001364250us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMembernysedei:ForwardSwapAccretingPrincipalMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-09-300001364250us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001364250us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-12-310001364250us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300001364250us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-09-300001364250us-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMemberus-gaap:DesignatedAsHedgingInstrumentMember2020-01-012020-09-300001364250us-gaap:CashFlowHedgingMemberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMemberus-gaap:DesignatedAsHedgingInstrumentMember2019-01-012019-09-3000013642502019-06-072019-06-070001364250nysedei:ConsolidatedJointVentureMember2019-06-282019-06-280001364250nysedei:FannieMaeLoansWithMaturityDateOfJun012029AMemberus-gaap:SecuredDebtMember2019-06-070001364250nysedei:DouglasEmmettOperatingPartnershipMember2020-09-3000013642502020-05-282020-05-280001364250nysedei:OperatingPartnershipUnitsMember2020-07-012020-09-300001364250nysedei:OperatingPartnershipUnitsMember2019-07-012019-09-300001364250nysedei:OperatingPartnershipUnitsMember2020-01-012020-09-300001364250nysedei:OperatingPartnershipUnitsMember2019-01-012019-09-300001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2020-07-012020-09-300001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2019-07-012019-09-300001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2020-01-012020-09-300001364250nysedei:VestedLongTermIncentivePlanLTIPUnitsMember2019-01-012019-09-300001364250us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-09-300001364250us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001364250us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-09-300001364250us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001364250us-gaap:FairValueInputsLevel2Member2020-09-300001364250us-gaap:FairValueInputsLevel2Member2019-12-310001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-09-300001364250us-gaap:FairValueInputsLevel2Memberus-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2019-12-31nysedei:segment0001364250us-gaap:WhollyOwnedPropertiesMember2020-09-30nysedei:buildingnysedei:apartment0001364250stpr:CAnysedei:DevelopmentProjectsMember2020-01-012020-09-300001364250stpr:HInysedei:DevelopmentProjectsMember2020-09-300001364250stpr:HInysedei:DevelopmentProjectsMember2020-01-012020-09-300001364250nysedei:DevelopmentProjectsMember2020-09-300001364250nysedei:RepositioningsCapitalExpenditureProjectsAndTenantImprovementsMember2020-09-300001364250nysedei:PartnershipXMemberus-gaap:LoansPayableMember2020-09-300001364250nysedei:PartnershipXMemberus-gaap:LoansPayableMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-09-300001364250nysedei:PartnershipXMemberus-gaap:InterestRateSwapMember2020-09-300001364250nysedei:PartnershipXMemberus-gaap:InterestRateSwapMember2020-01-012020-09-300001364250nysedei:PartnershipXMemberus-gaap:LoansPayableMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-09-30

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, 2020

or
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
nysedei-20200930_g1.jpg

Douglas Emmett, Inc.
(Exact name of registrant as specified in its charter)
Maryland20-3073047
(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 ClassTrading SymbolName of Each Exchange on Which Registered
Common Stock, $0.01 par value per shareDEINew 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 filerAccelerated filer
Non-accelerated filerSmaller 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 atOctober 30, 2020
Common Stock, $0.01 par value per share 175,374,886shares
1



DOUGLAS EMMETT, INC.
FORM 10-Q
Table of Contents
Page
 
 
 
 
 
     Overview
     Other Assets
     Equity
     EPS
 

2

Table of Contents
Glossary
Abbreviations used in this Report:

AOCIAccumulated Other Comprehensive Income (Loss)
ASCAccounting Standards Codification
ASUAccounting Standards Update
ATMAt-the-Market
BOMABuilding Owners and Managers Association
CEOChief Executive Officer
CFOChief Financial Officer
CodeInternal Revenue Code of 1986, as amended
COVID-19Coronavirus Disease 2019
DEIDouglas Emmett, Inc.
EPSEarnings Per Share
Exchange ActSecurities Exchange Act of 1934, as amended
FASBFinancial Accounting Standards Board
FDICFederal Deposit Insurance Corporation
FFOFunds From Operations
Fund XDouglas Emmett Fund X, LLC
FundsUnconsolidated Institutional Real Estate Funds
GAAPGenerally Accepted Accounting Principles (United States)
JVJoint Venture
LIBORLondon Interbank Offered Rate
LTIP UnitsLong-Term Incentive Plan Units
NAREITNational Association of Real Estate Investment Trusts
OCIOther Comprehensive Income (Loss)
OP UnitsOperating Partnership Units
Operating PartnershipDouglas Emmett Properties, LP
Opportunity FundFund X Opportunity Fund, LLC
Partnership XDouglas Emmett Partnership X, LP
PCAOBPublic Company Accounting Oversight Board (United States)
REITReal Estate Investment Trust
ReportQuarterly Report on Form 10-Q
SECSecurities and Exchange Commission
Securities ActSecurities Act of 1933, as amended
TRSTaxable REIT Subsidiary(ies)
USUnited States
USDUnited States Dollar
VIEVariable Interest Entity(ies)

3

Table of Contents
Glossary
Defined terms used in this Report:

Annualized RentAnnualized 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 one single tenant building 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 includes rent for a health club that we owned and operated in Honolulu and for our corporate headquarters in Santa Monica. We report Annualized Rent because it is a widely reported measure of the performance of equity REITs, and is used by some investors as a means to determine tenant demand and to compare our performance and value with other REITs. We use Annualized Rent to manage and monitor the performance of our office and multifamily portfolios.
Consolidated PortfolioIncludes 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), and impairment write-downs of real estate 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.
Leased RateThe percentage leased as of the reporting date. Management space is considered leased. Space taken out of service during a repositioning or which is vacant as a result of a fire or other damage is excluded from both the numerator and denominator for calculating percentage leased. We report Leased Rate because it is a widely reported measure of the performance of equity REITs, and is also used by some investors as a means to determine tenant demand and to compare our performance with other REITs. We use Leased Rate to manage and monitor the performance of our office and multifamily portfolios.
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 expenses, income from unconsolidated Funds, interest expense, gain from consolidation of JVs, 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 RateWe calculate the Occupancy Rate by excluding signed leases not yet commenced from the Leased Rate. Management space is considered occupied. Space taken out of service during a repositioning or which is vacant as a result of a fire or other damage is excluded from both the numerator and denominator for calculating Occupancy Rate. We report Occupancy Rate because it is a widely reported measure of the performance of equity REITs, and is also used by some investors as a means to determine tenant demand and to compare our performance with other REITs. We use Occupancy Rate to manage and monitor the performance of our office and multifamily portfolios.
Rental RateWe present two forms of Rental Rates - Cash Rental Rates and Straight-Line Rental Rates. Cash Rental Rate is calculated by dividing the rent paid by the Rentable Square Feet. Straight-Line Rental Rate is calculated by dividing the average rent over the lease term by the Rentable Square Feet.
4

Table of Contents
Glossary
Recurring Capital ExpendituresBuilding 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 or significantly change the use of the space, (iv) casualty damage and (v) bringing the property into compliance with governmental or lender requirements. We report Recurring Capital Expenditures because it is a widely reported measure of the performance of equity REITs, and is used by some investors as a means to determine our cash flow requirements and to compare our performance with other REITs. We use Recurring Capital Expenditures to manage and monitor the performance of our office and multifamily portfolios.
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. We report Rentable Square Feet because it is a widely reported measure of the performance and value of equity REITs, and is also used by some investors to compare our performance and value with other REITs. We use Rentable Square Feet to manage and monitor the performance of our office portfolio.
Same PropertiesOur 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 LeasesRepresents 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 PortfolioIncludes our Consolidated Portfolio plus the properties owned by our Fund.
5

Table of Contents
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 developments related to the COVID-19 pandemic;
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 2019 Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and Item 1A. "Risk Factors" in this Report. 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.

6

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
Douglas Emmett, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
 September 30, 2020December 31, 2019
Unaudited
Assets  
Investment in real estate, gross$11,634,453 $11,478,633 
Less: accumulated depreciation and amortization(2,757,701)(2,518,415)
Investment in real estate, net8,876,752 8,960,218 
Ground lease right-of-use asset7,475 7,479 
Cash and cash equivalents202,166 153,683 
Tenant receivables17,482 5,302 
Deferred rent receivables116,908 134,968 
Acquired lease intangible assets, net5,437 6,407 
Interest rate contract assets 22,381 
Investment in unconsolidated Fund47,589 42,442 
Other assets15,564 16,421 
Total Assets$9,289,373 $9,349,301 
Liabilities  
Secured notes payable and revolving credit facility, net$4,708,312 $4,619,058 
Ground lease liability10,875 10,882 
Interest payable, accounts payable and deferred revenue182,516 131,410 
Security deposits57,368 60,923 
Acquired lease intangible liabilities, net38,861 52,367 
Interest rate contract liabilities241,960 54,616 
Dividends payable49,113 49,111 
Total liabilities5,289,005 4,978,367 
Equity  
Douglas Emmett, Inc. stockholders' equity:  
Common Stock, $0.01 par value, 750,000,000 authorized, 175,374,886 and 175,369,746 outstanding at September 30, 2020 and December 31, 2019, respectively
1,754 1,754 
Additional paid-in capital3,486,442 3,486,356 
Accumulated other comprehensive loss(167,591)(17,462)
Accumulated deficit(873,080)(758,576)
Total Douglas Emmett, Inc. stockholders' equity2,447,525 2,712,072 
Noncontrolling interests1,552,843 1,658,862 
Total equity4,000,368 4,370,934 
Total Liabilities and Equity$9,289,373 $9,349,301 

See accompanying notes to the consolidated financial statements.
7

Table of Contents
Douglas Emmett, Inc.
Consolidated Statements of Operations
(Unaudited; in thousands, except per share data)




 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Revenues    
Office rental    
Rental revenues and tenant recoveries$169,571 $175,017 $514,211 $513,926 
Parking and other income19,324 30,883 71,562 91,453 
Total office revenues188,895 205,900 585,773 605,379 
Multifamily rental    
Rental revenues25,727 29,854 80,685 81,055 
Parking and other income2,365 2,315 9,675 6,355 
Total multifamily revenues28,092 32,169 90,360 87,410 
Total revenues216,987 238,069 676,133 692,789 
Operating Expenses    
Office expenses68,956 68,754 198,921 196,511 
Multifamily expenses9,313 9,127 27,525 24,394 
General and administrative expenses9,469 9,218 29,667 28,209 
Depreciation and amortization94,952 90,279 291,494 248,876 
Total operating expenses182,690 177,378 547,607 497,990 
Operating income34,297 60,691 128,526 194,799 
Other income654 2,952 2,968 8,742 
Other expenses(788)(1,656)(2,662)(5,308)
Income from unconsolidated Funds145 1,831 328 5,589 
Interest expense(36,167)(40,397)(106,777)(107,753)
Net (loss) income(1,859)23,421 22,383 96,069 
Less: Net loss (income) attributable to noncontrolling interests5,632 (933)10,343 (10,914)
Net income attributable to common stockholders$3,773 $22,488 $32,726 $85,155 
Net income per common share – basic and diluted$0.02 $0.13 $0.18 $0.49 
 
See accompanying notes to the consolidated financial statements.
8

Table of Contents
Douglas Emmett, Inc.
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited and in thousands)



 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Net (loss) income$(1,859)$23,421 $22,383 $96,069 
Other comprehensive income (loss): cash flow hedges17,060 (33,179)(211,194)(148,100)
Comprehensive income (loss)15,201 (9,758)(188,811)(52,031)
Less: Comprehensive loss attributable to noncontrolling interests452 9,221 71,408 34,364 
Comprehensive income (loss) attributable to common stockholders$15,653 $(537)$(117,403)$(17,667)
 

See accompanying notes to the consolidated financial statements.


9

Table of Contents
Douglas Emmett, Inc.
Consolidated Statements of Equity
(Unaudited; in thousands, except per share data)

 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Shares of Common StockBeginning balance175,375 175,223 175,370 170,215 
Exchange of OP Units for common stock 125 5 201 
Issuance of common stock   4,932 
Ending balance175,375 175,348 175,375 175,348 
Common StockBeginning balance$1,754 $1,752 $1,754 $1,702 
Exchange of OP units for common stock 1  2 
Issuance of common stock   49 
Ending balance$1,754 $1,753 $1,754 $1,753 
Additional Paid-in CapitalBeginning balance$3,486,442 $3,484,180 $3,486,356 $3,282,316 
Exchange of OP Units for common stock 1,985 90 3,207 
Repurchase of OP Units with cash (140)(4)(431)
Issuance of common stock, net   200,933 
Ending balance$3,486,442 $3,486,025 $3,486,442 $3,486,025 
AOCIBeginning balance$(179,471)$(25,853)$(17,462)$53,944 
Cash flow hedge adjustments11,880 (23,025)(150,129)(102,822)
Ending balance$(167,591)$(48,878)$(167,591)$(48,878)
Accumulated DeficitBeginning balance$(827,748)$(964,927)$(758,576)$(935,630)
ASU 2016-02 adoption   (2,144)
Net income attributable to common stockholders3,773 22,488 32,726 85,155 
Dividends(49,105)(45,591)(147,230)(135,411)
Ending balance$(873,080)$(988,030)$(873,080)$(988,030)
Noncontrolling InterestsBeginning balance$1,563,362 $1,557,208 $1,658,862 $1,446,098 
ASU 2016-02 adoption   (355)
Net (loss) income attributable to noncontrolling interests(5,632)933 (10,343)10,914 
Cash flow hedge adjustments5,180 (10,154)(61,065)(45,278)
Contributions   176,000 
Distributions(13,430)(15,726)(45,244)(59,700)
Exchange of OP Units for common stock (1,986)(90)(3,209)
Repurchase of OP Units with cash (87)(3)(303)
Stock-based compensation3,363 3,004 10,726 9,025 
Ending balance$1,552,843 $1,533,192 $1,552,843 $1,533,192 
  
10

Table of Contents
Douglas Emmett, Inc.
Consolidated Statements of Equity
(Unaudited; in thousands, except per share data)
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Total EquityBeginning balance$4,044,339 $4,052,360 $4,370,934 $3,848,430 
ASU 2016-02 adoption   (2,499)
Net (loss) income(1,859)23,421 22,383 96,069 
Cash flow hedge adjustments17,060 (33,179)(211,194)(148,100)
Issuance of common stock, net   200,982 
Repurchase of OP Units with cash (227)(7)(734)
Contributions   176,000 
Dividends(49,105)(45,591)(147,230)(135,411)
Distributions(13,430)(15,726)(45,244)(59,700)
Stock-based compensation3,363 3,004 10,726 9,025 
Ending balance$4,000,368 $3,984,062 $4,000,368 $3,984,062 
Dividends declared per common share$0.28 $0.26 $0.84 $0.78 

See accompanying notes to the consolidated financial statements.
11

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

    
 Nine Months Ended September 30,
20202019
Operating Activities  
Net income$22,383 $96,069 
Adjustments to reconcile net income to net cash provided by operating activities:  
Income from unconsolidated Funds(328)(5,589)
Depreciation and amortization291,494 248,876 
Net accretion of acquired lease intangibles(12,536)(12,519)
Straight-line rent18,061 (9,298)
Loan premium amortized and written off(2,158)(153)
Deferred loan costs amortized and written off5,813 10,603 
Amortization of stock-based compensation8,364 7,395 
Operating distributions from unconsolidated Funds394 5,589 
Change in working capital components:  
Tenant receivables(12,180)(742)
Interest payable, accounts payable and deferred revenue37,360 20,284 
Security deposits(3,555)305 
Other assets3,617 (1,852)
Net cash provided by operating activities356,729 358,968 
Investing Activities  
Capital expenditures for improvements to real estate(105,583)(128,175)
Capital expenditures for developments(94,019)(44,756)
Insurance recoveries for damage to real estate4,015 1,406 
Property acquisition (365,875)
Acquisition of additional interests in unconsolidated Fund(6,591)(7,518)
Capital distributions from unconsolidated Funds884 5,851 
Net cash used in investing activities(201,294)(539,067)
Financing Activities  
Proceeds from borrowings589,000 1,782,557 
Repayment of borrowings(499,561)(1,733,092)
Loan cost payments(3,839)(16,555)
Contributions from noncontrolling interests in consolidated JVs 163,556 
Distributions paid to noncontrolling interests(45,244)(47,256)
Dividends paid to common stockholders(147,228)(134,076)
Repurchase of OP Units(7)(734)
Proceeds from issuance of common stock, net 200,982 
Net cash (used in) provided by financing activities(106,879)215,382 
Increase in cash and cash equivalents and restricted cash48,556 35,283 
Cash and cash equivalents and restricted cash - beginning balance153,804 146,348 
Cash and cash equivalents and restricted cash - ending balance$202,360 $181,631 
12

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

Reconciliation of Ending Cash Balance
Nine Months Ended September 30,
20202019
Cash and cash equivalents - ending balance$202,166 $181,510 
Restricted cash - ending balance194 121 
Cash and cash equivalents and restricted cash - ending balance$202,360 $181,631 



Supplemental Cash Flows Information
 Nine Months Ended September 30,
 20202019
Operating Activities
Cash paid for interest, net of capitalized interest$103,117 $98,424 
Capitalized interest paid$3,256 $2,805 
Non-cash Investing Transactions
Accrual for real estate and development capital expenditures$46,428 $6,641 
Capitalized stock-based compensation for improvements to real estate and developments$2,362 $1,630 
Removal of fully depreciated and amortized tenant improvements and lease intangibles$48,208 $62,825 
Removal of fully amortized acquired lease intangible assets$271 $1,874 
Removal of fully accreted acquired lease intangible liabilities$6,659 $28,152 
Property acquisition accrual$ $10 
Recognition of ground lease right-of-use asset - Adoption of ASU 2016-02$ $10,885 
Above-market ground lease intangible liability offset against right-of-use asset - Adoption of ASU 2016-02$ $3,408 
Recognition of ground lease liability - Adoption of ASU 2016-02$ $10,885 
Non-cash Financing Transactions
Loss recorded in AOCI - consolidated derivatives$(242,115)$(116,251)
Loss recorded in AOCI - unconsolidated Funds' derivatives (our share)$(407)$(7,995)
Accrual for deferred loan costs$ $1,862 
Non-cash contributions from noncontrolling interests in consolidated JVs$ $12,444 
Non-cash distributions to noncontrolling interests$ $12,444 
Dividends declared$147,230 $135,411 
Exchange of OP Units for common stock$90 $3,209 

See accompanying notes to the consolidated financial statements.

13

Table of Contents
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 Fund, 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, 2020, our Consolidated Portfolio consisted of (i) a 17.9 million square foot office portfolio, (ii) 4,258 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 an equity interest in an unconsolidated Fund which, at September 30, 2020, owned an additional 0.4 million square feet of office space. We manage our unconsolidated Fund alongside our Consolidated Portfolio, and we therefore present the statistics for our office portfolio on a Total Portfolio basis. As of September 30, 2020, 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 PortfolioTotal
Portfolio
Office
Wholly-owned properties5353
Consolidated JV properties1717
Unconsolidated Fund properties2
7072
Multifamily
Wholly-owned properties1111
Consolidated JV properties11
1212
Total8284

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 $3.15 billion of consolidated debt. See Note 8. We also consolidate four JVs. As of September 30, 2020, these consolidated entities had aggregate total consolidated assets of $9.29 billion (of which $8.88 billion related to investment in real estate), aggregate total consolidated liabilities of $5.29 billion (of which $4.71 billion related to debt), and aggregate total consolidated equity of $4.00 billion (of which $1.55 billion related to noncontrolling interests).
14

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules and regulations of the SEC in conformity with US GAAP as established by the FASB in the ASC. 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, 2020. The interim consolidated financial statements should be read in conjunction with the consolidated financial statements in our 2019 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.

Commencing with this Report, we moved the disclosure of our investment in real estate cost categories (land, buildings and improvements, tenant improvements and lease intangibles, and property under development) from the consolidated balance sheets to Note 3.

2. Summary of Significant Accounting Policies

We have not made any changes to our significant accounting policies disclosed in our 2019 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

Rental revenues and tenant recoveries

We account for our rental revenues and tenant recoveries in accordance with Topic 842 "Leases". Rental revenues and tenant recoveries are included in: (i) Rental revenues and tenant recoveries under Office rental, and (ii) Rental revenues under Multifamily rental, in our consolidated statements of operations.

In accordance with Topic 842, we perform an assessment as to whether or not substantially all of the amounts due under a tenant’s lease agreement is deemed probable of collection. This assessment involves using a methodology that requires judgment and estimates about matters that are uncertain at the time the estimates are made, including tenant specific factors, specific industry conditions, and general economic trends and conditions.

For leases where we have concluded it is probable that we will collect substantially all the lease payments due under those leases, we continue to record lease income on a straight-line basis over the lease term. For leases where we have concluded that it is not probable that we will collect substantially all the lease payments due under those leases, we limit the lease income to the lesser of the income recognized on a straight-line basis or cash basis. If our conclusion of collectibility changes, we will record the difference between the lease income that would have been recognized on a straight-line basis and cash basis as a current-period adjustment to rental revenues and tenant recoveries. We write-off tenant receivables and deferred rent receivables as a charge against rental revenues and tenant recoveries in the period we conclude that substantially all of the lease payments are not probable of collection. If we subsequently collect amounts that were previously written off then the amounts collected are recorded as an increase to our rental revenues and tenant recoveries.

Charges for uncollectible amounts, related to tenant receivables and deferred rent receivables, which for the three and nine months ended September 30, 2020 were primarily due to the impact of the COVID-19 pandemic, reduced our office revenues by $3.5 million for the three months ended September 30, 2020, and $38.5 million and $2.6 million for the nine months ended September 30, 2020 and 2019, respectively.

15

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Office parking revenues

We account for our office parking revenues in accordance with ASC 606 "Revenue from Contracts with Customers". Office parking revenues are included in Parking and other income under Office rental in our consolidated statements of operations. 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 $15.6 million and $27.3 million for the three months ended September 30, 2020 and 2019, and $60.5 million and $80.5 million for the nine months ended September 30, 2020 and 2019, respectively. Office parking receivables were $0.8 million and $1.3 million as of September 30, 2020 and December 31, 2019, 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 2016-13 (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 was the first quarter of 2020. The amendments in the ASU should be applied on a modified-retrospective basis. The ASU impacts our measurement of credit losses for our Office parking receivables, which were $0.8 million and $1.3 million as of September 30, 2020 and December 31, 2019, respectively, and are included in Tenant receivables in our consolidated balance sheets. We adopted the ASU in the first quarter of 2020 and it did not have a material impact on our consolidated financial statements.

ASU 2020-04 (Topic 848 - "Reference Rate Reform")

In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform", which contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The practical expedients are optional and may be elected over time as reference rate reform activities occur. We elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. Application of these expedients maintains the presentation of derivatives consistent with past presentation. We will continue to evaluate the impact of the ASU and may apply other elections, as applicable, as additional changes in the market occur. Our election to apply the hedge accounting expedients in the first quarter of 2020 did not have a material impact on our consolidated financial statements.


16

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
Other Pronouncements

FASB COVID-19 Lease Modification Accounting Relief

In April 2020, the FASB staff issued a question and answer document (the “Lease Modification Q&A”) on the application of lease accounting guidance to lease concessions provided as a result of the COVID-19 pandemic. Under the existing lease accounting guidance, we would be required to determine on a lease-by-lease basis if a lease concession was the result of a new arrangement reached with the tenant (treated within the lease modification accounting framework) or if a lease concession was under the enforceable rights and obligations within the existing lease agreement (precluded from applying the lease modification accounting framework). The Lease Modification Q&A allows us, if certain criteria are met, to bypass the lease-by-lease analysis, and instead elect to either apply the lease modification accounting framework or not, with such election applied consistently to leases with similar characteristics and similar circumstances. We have availed ourselves of the election to avoid performing a lease-by-lease analysis and we have elected to apply the lease modification accounting framework.

FASB COVID-19 Cash Flow Hedge Accounting Relief

In April 2020, the FASB staff issued a question and answer document (the “Cash Flow Hedge Accounting Q&A”) on the application of cash flow hedge accounting guidance to cash flow hedges impacted by the COVID-19 pandemic. The Cash Flow Hedge Accounting Q&A clarifies that: (i) when cash flow hedge accounting has been discontinued, the delays in the timing of the forecasted transactions related to the impact of the COVID-19 pandemic may be considered rare cases caused by extenuating circumstances outside the control or influence of an entity, thereby allowing amounts deferred in AOCI to remain in AOCI until the forecasted transaction affects earnings, and (ii) missed forecasts, related to the effects of the COVID-19 pandemic, do not need to be considered when determining whether the entity has exhibited a pattern of missing forecasts that would call into question the entity’s ability to accurately predict forecasted transactions and the propriety of using cash flow hedge accounting in the future for similar transactions. The Cash Flow Hedge Accounting Q&A did not have a material impact on our consolidated financial statements.
17

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
3. Investment in Real Estate

The table below summarizes our investment in real estate:

(In thousands)September 30, 2020December 31, 2019
Land$1,152,684$1,152,684
Buildings and improvements9,341,2429,308,481
Tenant improvements and lease intangibles930,206905,753
Property under development210,321111,715
Investment in real estate, gross$11,634,453$11,478,633

Acquisitions

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.

Nine Months Ended September 30, 2020

During nine months ended September 30, 2020, we did not purchase any properties.

Nine Months Ended September 30, 2019

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
SubmarketWest Los Angeles
Acquisition dateJune 7, 2019
Contract price$365,100 
Number of multifamily units350
Retail square footage50 
Investment in real estate: 
Land$32,773 
Buildings and improvements333,624 
Tenant improvements and lease intangibles2,301 
Acquired above- and below-market leases, net(2,114)
Net assets and liabilities acquired$366,584 

18

Table of Contents
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, 2020, the ground lease right-of-use asset carrying value was $7.5 million and the ground lease liability was $10.9 million.

We incurred ground rent expense of $183 thousand and $170 thousand for the three months ended September 30, 2020 and 2019, and $548 thousand and $532 thousand for the nine months ended September 30, 2020 and 2019, 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, 2020:
Twelve months ending September 30:(In thousands)
2021$733 
2022733 
2023733 
2024733 
2025733 
Thereafter44,895 
Total future minimum lease payments$48,560 

19

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
5. Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles

 (In thousands)September 30, 2020December 31, 2019
Above-market tenant leases$6,949 $7,220 
Above-market tenant leases - accumulated amortization(2,427)(1,741)
Above-market ground lease where we are the lessor1,152 1,152 
Above-market ground lease - accumulated amortization(237)(224)
Acquired lease intangible assets, net$5,437 $6,407 
Below-market tenant leases$95,923 $102,583 
Below-market tenant leases - accumulated accretion(57,062)(50,216)
Acquired lease intangible liabilities, net$38,861 $52,367 
    

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)2020201920202019
Net accretion of above- and below-market tenant lease assets and liabilities(1)
$3,970 $4,009 $12,549 $12,533 
Amortization of an above-market ground lease asset(2)
(5)(6)(13)(14)
Total$3,965 $4,003 $12,536 $12,519 
______________________________________________
(1)    Recorded as a net increase to office and multifamily rental revenues.
(2)    Recorded as a decrease to office parking and other income.


20

Table of Contents
Douglas Emmett, Inc.
Notes to Consolidated Financial Statements (unaudited) (continued)
6. Investments in Unconsolidated Funds

Description of our Funds

As of September 30, 2020, we manage and own an equity interest of 33.5% in an unconsolidated Fund, Partnership X, through which we and other investors in the Fund own two office properties totaling 0.4 million square feet. During the nine months ended September 30, 2020 we purchased additional interests of 3.6% in Partnership X for $6.6 million.
On November 21, 2019, we restructured Fund X which resulted in Fund X being treated as a consolidated JV from November 21, 2019, and we closed the Opportunity Fund. See Note 6 in our 2019 Annual Report on Form 10-K.
At September 30, 2019, we managed and held direct and indirect equity interests in three unconsolidated Funds, consisting of 6.2% of the Opportunity Fund, 72.7% of Fund X and 24.6% of Partnership X, through which we and investors in the Funds' owned eight office properties totaling 1.8 million square feet. We purchased an additional interest of 1.4% in Fund X during the nine months ended September 30, 2019.
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)20202019
Operating distributions received(1)
$