Douglas Emmett Inc (NYSE:DEI) Q4 2019 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 02:00 pm ET


Douglas Emmett Inc (NYSE:DEI) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


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.

Stuart McElhinney

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. A successful fourth quarter capped off a very strong year and a great decade for Douglas Emmett. During 2019, we grew our FFO by 6.3%, our AFFO by 18%. Our same property cash NOI by 7.5% and raised our dividend by 8%. The straight-line value of our office leases signed during the year was 28% greater than the prior leases for the same space. We significantly strengthened our balance sheet during the year, refinancing approximately $2 billion of debt, which added almost five years to that debt average term. At year-end, we had no floating rate debt and no maturities before 2023. Our weighted average interest rate is only 3% and our pool of unencumbered assets has increased to 41% of our office portfolio. We purchased a fantastic multifamily asset in Westwood and completed a very successful lease-up of our first multifamily development in Honolulu.

Taking a moment to reflect back on the entire decade. We grew our office portfolio by 38% from 13.3 million to 18.3 million square feet. We grew our multifamily portfolio by 45% to over 4,000 units. We grew our FFO per share by 65% and our AFFO per share by 95%. As a result, our total shareholder return for the decade was 304%, 45%