Douglas Emmett Inc (NYSE:DEI) Q3 2019 Earnings Conference Call Transcript
Nov 06, 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. [Operator Instructions] 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. Please go ahead.
Thank you. Joining us today on the call are Jordan Kaplan, our President and CEO, Kevin Crummy our CIO, and Peter Seymour, 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. Tenant demand for our office buildings is robust. We leased 1 million square feet during the quarter, including a record 461,000 square feet of new leases. Our success drove a 50 basis point increase in occupancy and increased our leased rate by almost a full percentage point to 93.1%. Our leasing gains and our continued strong rent roll up drove a 6.7% increase in same property cash NOI. Overall, our tenant demand is supported by a wide range of industries and healthy regional economic trends. On the supply side, we don't face any meaningful new construction in our markets.
Last quarter we told you about our strategy to take advantage of low long-term rates and tight lending spreads to reduce interest rates and extend maturities. I'm pleased to say that since May, we have now successfully refinanced approximately $2 billion, adding almost five years to its average term while reducing its current interest rate by nearly 35 basis points to 2.63%.
As expected, our strategic balance sheet activities reduced FFO for the third quarter by $0.04 per share, due to one-time non-cash and cash loan costs as well as equity dilution. The loan cost from our most recent financing will reduce our fourth quarter FFO by an additional penny,