Douglas Emmett Inc (NYSE:DEI) Q1 2018 Earnings Conference Call - Final Transcript
May 09, 2018 • 02:00 pm ET
Welcome to Douglas Emmett's Quarterly Earnings Call. Today's call is being recorded. At this time, all participants are in a listen-only mode. After management's prepared remarks, you will receive instructions for participating in the question-and-answer session.
I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.
Thank you. Joining us on the call today are Jordan Kaplan, our President and CEO; Kevin Crummy, our CIO; and Mona Gisler, our CFO. This call is being webcast live from our website and will be available for replay during the next 90 days. You can also find our earnings package at the Investor Relations section of our website. You can find reconciliations of non-GAAP financial measures discussed during today's call in the earnings package.
During the course of this call, we will make forward-looking statements. These forward-looking statements are based on the beliefs of, assumptions made by and information currently available to us. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors that are 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 prove to be incorrect. Therefore, our actual future results can be expected to differ from our expectations, and those differences may be material. For a more detailed description of some potential risks, please refer to our SEC filings, which can be found in the Investor Relations section of our website. When we reach the question-and-answer portion, in consideration of others, please limit yourself to one question and one follow-up.
I will now turn the call over to Jordan.
Good morning, everyone. Thank you for joining us. We had a busy leasing quarter, executing 1.3 million square feet of leases, an all-time high. I'm especially pleased that we renewed the leases at our two single tenant buildings, including the 456,000 square foot lease at our Studio Plaza property. The occupancy decline this quarter resulted from higher than usual expirations impacting January, including an 89,000 square foot downsize in Warner Center. Since quarter end, we have made good progress in leasing, including backfilling almost two-thirds of the Warner Center downsize.
We have only one lease left that is over 100,000 square feet in that submarket. More importantly, we are well-positioned to move up occupancy across our entire portfolio as lease expirations through the end of 2019 are the lowest since we went public in 2006. As Stuart will discuss, our leasing this quarter generated very healthy rent roll up, demand drivers in our submarkets remained strong with LA County, adding over 60,000 jobs during the 12 months ended in February. Protected by high barriers to entry, we have grown our average in-place rent by 7.2% over the last year, setting another all-time record in every Los Angeles submarket other than Warner Center.
In Warner Center, recent rent increases have driven in-place rents to their highest level in five years. Mona will report on