Douglas Emmett Inc (NYSE:DEI) Q4 2018 Earnings Conference Call Transcript
Feb 13, 2019 • 02:00 pm ET
Ladies and gentlemen, thank you for standing by. 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.
Jordan L. Kaplan
Good morning, everyone. Thank you for joining us. I am excited about 2019, following a very successful 2018 at Douglas Emmett. During 2018, we grew our FFO by 12.7% and our AFFO by 7.4%, and raised our dividend by 4%. The straight-line value of office leases, signed during 2018 was 31% greater than the prior leases for the same space.
And our development platform has matured to the point where it's making meaningful additions to FFO. Already in 2019, we've completed construction at our Moanalua apartment community, which now has almost 1,200 units. With the upgrades to our existing buildings and new amenities, this is now, one of the most modern and desirable workforce housing communities in Hawaii.
I'm also happy to report that construction is in full-swing at our 34-story new residential project in Brentwood. We will soon complete our first group of office repositioning projects and we are already seeing accelerated rent growth from our efforts. We plan to pursue more repositioning opportunities during 2019 and beyond, which will provide significant, incremental revenue growth and a very high return on our invested capital.
Finally, I am pleased to announce that we plan to add approximately 500 new workforce apartments in downtown Honolulu, by converting a 25-story, 490,000 square foot office tower to