Liquidity is under pressure as cash reserves declined from $561.1 million in 2024Q2 to $357.2 million in 2026Q1, limiting the firm's flexibility for necessary tenant improvements.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 |
|---|
| Cash from Operations | 371.15M | 386.85M | 408.69M | 426.96M | 496.89M | 446.95M | 420.22M | 469.59M | 432.98M | 402.7M | 339.45M | 271.43M | 246.72M | 243.97M | 210.37M | 207.84M | 188.88M | 180.34M | 182.83M | 154.81M | 146.62M | 127.81M |
| Operating CF Growth % | -32.27% | -5.34% | -4.28% | -14.07% | 11.17% | 6.36% | -10.51% | 8.45% | 7.52% | 18.63% | 25.06% | 10.02% | 1.12% | 15.97% | 1.22% | 10.04% | 4.73% | -1.36% | 18.1% | 5.58% | 14.72% | - |
| Operating CF / Revenue % | 36.99% | 38.53% | 41.43% | 41.84% | 50.01% | 48.67% | 47.32% | 49.77% | 49.13% | 49.59% | 45.71% | 42.69% | 41.15% | 41.24% | 36.33% | 36.12% | 33.09% | 31.58% | 30.07% | 29.87% | 33.81% | 32.46% |
| Net Income | -26.03M | -11.43M | 7.59M | -43.9M | 96.54M | 56.13M | 38.55M | 418.7M | 128.61M | 104.43M | 96.09M | 68.75M | 52.85M | 52.84M | 28.34M | 2.26M | -32.96M | -34.16M | -27.99M | -13.01M | -36.95M | -16.52M |
| Depreciation & Amortization | 396.28M | 394.11M | 376.02M | 448.99M | 361.54M | 361.75M | 369.37M | 341.48M | 287.84M | 258.75M | 230.72M | 186.23M | 186.43M | 175.66M | 166.75M | 185.23M | 225.03M | 226.62M | 249.75M | 208.43M | 127.98M | 113.17M |
| Stock-Based Compensation | 21.2M | 21.21M | 21.04M | 19.83M | 21.02M | 20.89M | 21.36M | 18.36M | 22.3M | 18.48M | 17.45M | 15.23M | 13.72M | 10.01M | 10.58M | 0 | 0 | 5.1M | 0 | 2.18M | 0 | 0 |
| Other Non-Cash Items | 4.92M | -41.03M | 5.38M | 10.42M | 7.65M | 11.49M | 11.19M | 3.92M | -10.73M | -2.02M | -4.67M | 2.05M | -2.52M | 4.21M | 3.15M | 22.8M | 5.55M | 20.72M | -37.45M | -41.84M | 52.99M | 50.84M |
| Working Capital Changes | 17.37M | 24M | -1.34M | -8.38M | 10.13M | -3.31M | -13.83M | -8.93M | 4.96M | 23.01M | 19.53M | 5.85M | -1.01M | 3.49M | -9.88M | -2.45M | -8.74M | -173K | -1.48M | 1.22M | 2.61M | -19.68M |
| Cash from Investing | -306.21M | -259.94M | -240.76M | -233.59M | -560.95M | -288.71M | -265.18M | -649.67M | -249.55M | -669.6M | -1.37B | -231.59M | -319.96M | -247.02M | -91.52M | -59.96M | -304.61M | -48.78M | -684.62M | -172.8M | -2.1B | -231.16M |
| Acquisitions (Net) | 0 | 5.4M | -5.21M | -5.21M | 81M | 0 | -6.59M | -51.53M | -9.38M | -4.14M | 459.75M | -11K | 0 | -34.41M | -36.06M | 0 | 0 | -6.63M | 0 | 0 | 0 | 0 |
| Purchase of Investments | -26.74M | -102.46M | 0 | -46.69M | -406.22M | 0 | -14.27M | -456.64M | -9.38M | -541.81M | -1.62B | -91.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 25.59M | 0 | 0 | 1.92M | 1.34M | 14.27M | 45.08M | 7.35M | 43.56M | 333.88M | 14.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | 3.9M | 3.93M | 3.84M | 7.47M | 470K | 3.04M | 39.01M | 51.53M | 7.35M | -494.11M | -1.58B | -152.32M | -231.26M | -145.15M | 4.7M | -3.99M | -304.61M | -42.15M | 0 | -172.8M | -231.16M | 0 |
| Cash from Financing | -233.39M | -230.74M | -246.46M | 60.87M | -3M | 5.25M | -136.33M | 187.54M | -213.85M | 330.62M | 1.04B | 43.14M | 47.87M | -325.95M | -152.63M | -13.32M | 315.42M | -67.48M | 504.6M | 19.31M | 1.85B | 103.77M |
| Dividends Paid | -127.26M | -127.26M | -127.19M | -129.9M | -196.81M | -196.53M | -196.33M | -179.67M | -169.83M | -146.03M | -130.82M | -122.51M | -115.04M | -102.42M | -80.06M | -57.78M | -62.78M | -59.3M | -87.53M | -73.13M | -14.93M | -17.66M |
| Common Dividends | -127.26M | -127.26M | -127.19M | -129.9M | -196.81M | -196.53M | -196.33M | -179.67M | -169.83M | -146.03M | -130.82M | -122.51M | -115.04M | -102.42M | -80.06M | -57.78M | -48.98M | -59.3M | -87.53M | -73.13M | -14.93M | -17.66M |
| Debt Issuance (Net) | 0 | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -334K | -351K | -138K | -111.64M | -337K | -122K | -7K | -734K | -108K | -10.1M | -826K | 0 | -2.83M | -352K | 0 | 0 | 0 | -5.34M | 0 | -125.19M | 0 | 0 |
| Other Financing | -51.57M | -59.62M | -9.24M | -46.73M | 19.96M | -67.32M | -64.24M | 77.67M | -55.58M | 181.62M | 346.2M | -33.23M | -28.42M | -23.36M | -20.45M | -23.42M | -35.61M | 46.46M | -383K | -102.83M | -167.93M | -18.92M |
| Net Change in Cash | -168.45M | -103.83M | -78.53M | 254.25M | -67.07M | 163.49M | 18.71M | 7.46M | -30.42M | 63.72M | 11.13M | 82.97M | -25.38M | -329M | -33.77M | 134.56M | 199.68M | 64.08M | 2.81M | 1.31M | -103.75M | 422K |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 340.79M | 444.62M | 523.18M | 268.84M | 336.01M | 172.52M | 153.8M | 146.35M | 176.77M | 112.93M | 101.8M | 18.82M | 44.21M | 373.2M | 406.98M | 272.42M | 72.74M | 8.65M | 5.84M | 4.54M | 108.28M | 107.86M |
| Cash at End | 357.25M | 340.79M | 444.65M | 523.08M | 268.94M | 336.01M | 172.52M | 153.8M | 146.35M | 176.65M | 112.93M | 101.8M | 18.82M | 44.21M | 373.2M | 406.98M | 272.42M | 72.74M | 8.65M | 5.84M | 4.54M | 108.28M |
| Free Cash Flow | 111.15M | 194.46M | 169.3M | 237.81M | 258.77M | 153.86M | 122.62M | 231.48M | 185.46M | 231.35M | 219.9M | 192.17M | 158.01M | 176.52M | 150.22M | 151.88M | 188.88M | 180.34M | -501.79M | -18M | -1.95B | -103.35M |
| FCF Growth % | -30.92% | 14.86% | -28.81% | -8.1% | 68.19% | 25.48% | -47.03% | 24.81% | -19.84% | 5.21% | 14.43% | 21.61% | -10.48% | 17.51% | -1.09% | -19.59% | 4.73% | 135.94% | -2687.89% | 99.08% | -1791.54% | - |
| FCF / Revenue % | 11.08% | 19.37% | 17.16% | 23.3% | 26.04% | 16.75% | 13.81% | 24.53% | 21.04% | 28.49% | 29.61% | 30.23% | 26.36% | 29.84% | 25.94% | 26.4% | 33.09% | 31.58% | -82.52% | -3.47% | -450.77% | -26.24% |
Geographic concentration in California
As reported in the quarterly financial statements, Douglas Emmett's AFFO has experienced significant volatility, falling to $19.8 million in 2026Q1 from a peak of $77.8 million in 2025Q1, which suggests that the current dividend payout ratio may be increasingly reliant on non-recurring capital sources.
The wide variance in AFFO indicates that the company's ability to fund distributions from recurring operations is inconsistent. Investors should monitor whether the dividend remains sustainable if the current trend of declining AFFO persists, as the buffer between distributable cash and dividend obligations appears to be narrowing.
Based on the provided cash flow data, recurring capital expenditures, including tenant improvements and leasing commissions, frequently exceed $50 million per quarter, which significantly dilutes the company's free cash flow and limits the capital available for debt reduction or strategic reinvestment in the portfolio.
The high level of maintenance capex relative to FFO suggests that the company must continuously reinvest heavily to retain tenants in its West Los Angeles assets. This structural requirement for capital suggests that the company's cash flow profile is inherently defensive and sensitive to the costs of maintaining high-tier office standards.
According to the historical data, the relationship between FFO and GAAP operating cash flow is highly erratic, with FFO/NI ratios swinging from -83.45 in 2024Q4 to 3.33 in 2025Q1, indicating that GAAP metrics are poor proxies for the company's actual cash-generating performance.
The lack of correlation between GAAP operating cash flow and FFO suggests that significant working capital fluctuations or non-cash adjustments are distorting the reported figures. Analysts should exercise caution when relying on GAAP-based metrics, as they appear to obscure the underlying cash flow volatility inherent in the office leasing business.
As evidenced by the consistent net losses alongside positive FFO figures, non-cash depreciation charges are significantly depressing GAAP net income, which may lead to an inaccurate assessment of the company's true economic profitability and its capacity to service debt obligations.
The persistent gap between net income and FFO highlights the necessity of focusing on cash-based metrics to evaluate the company's performance. This distortion warrants further investigation into whether the depreciation schedule accurately reflects the economic useful life of the company's coastal real estate assets.
Quick answers to the most common questions about buying DEI stock.
Douglas Emmett, Inc. (DEI) generated $386.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Douglas Emmett, Inc. (DEI) generated $194.5M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Douglas Emmett, Inc. (DEI) spent $192.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Douglas Emmett, Inc. (DEI) returned $127.3M to shareholders via cash dividends and spent $0.4M on share repurchases. This shows the company's commitment to returning capital to its equity investors.