Douglas Emmett (DEI) 10-Q 2007 Q3 Quarterly report

Exhibit 99.1

SCHEDULE III

CONSOLIDATED REAL ESTATE AND ACCUMULATED DEPRECIATION

(Dollars in thousands)

Asset ID	Property Name	Encum- brances at December 31, 2006		Initial Cost				Cost Capitalized Subsequent to Acquisition				Gross Carrying Amount at December 31, 2006						Accumulated Depreciation at December 31, 2006		Year Built / Renovated	Year Acquired
				Land		Building & Improvements		Improve- ments		Carrying Costs		Land		Building & Improvements		Total
	Office Properties
4503	Bundy Olympic	$	24,979	$	4,201	$	11,860	$	27,193	$	—	$	6,030	$	37,224	$	43,254	$	235	1991/1998	1994
4502	The Gateway Building		34,434		2,376		15,302		43,578		—		5,119		56,137		61,256		343	1987	1994
4501	Village on Canon		1,316		5,933		11,389		46,874		—		13,303		50,893		64,196		286	1989/1995	1994
4504	Brentwood Executive Plaza		25,235		3,255		9,654		31,653		—		5,921		38,641		44,562		253	1983/1996	1995
4952	Camden Medical Arts		845		3,102		12,221		27,061		—		5,298		37,086		42,384		223	1972/1992	1995
4951	Executive Tower		—		6,660		32,045		56,501		—		9,471		85,735		95,206		587	1989	1995
4953	Palisades Promenade		36,970		5,253		15,547		49,764		—		9,664		60,900		70,564		370	1990	1995
4506	Studio Plaza		124,895		9,347		73,358		128,815		—		15,015		196,505		211,520		1,466	1988/2004	1995
4955	First Federal		79,741		9,989		29,187		109,629		—		21,787		127,018		148,805		758	1981/2000	1996
4954	Wilshire Brentwood Plaza		61,702		5,013		34,283		69,803		—		8,828		100,271		109,099		569	1985	1996
4956	Landmark II		115,372		19,156		109,259		67,527		—		26,139		169,803		195,942		1,018	1989	1997
5302	Olympic Center		27,926		5,473		22,850		28,666		—		8,247		48,742		56,989		311	1985/1996	1997
5053	Saltair San Vicente		451		5,075		6,946		15,803		—		7,557		20,267		27,824		134	1964/1992	1997
5052	Second Street		26,720		4,377		15,277		32,111		—		7,421		44,344		51,765		274	1991	1997
5060	Sherman Oaks Galleria		244,080		33,213		17,820		398,670		—		48,328		401,375		449,703		2,792	1981/2002	1997
5054	Tower at Sherman Oaks		910		4,712		15,747		33,622		—		8,685		45,396		54,081		302	1967/1991	1997
5051	The Verona		525		2,574		7,111		13,322		—		5,111		17,896		23,007		117	1991	1997
5314	Coral Plaza		20,066		4,028		15,019		16,804		—		5,366		30,485		35,851		191	1981	1998
5313	MB Plaza		31,185		4,533		22,024		27,038		—		7,503		46,092		53,595		305	1971/1996	1998
5308	Valley Executive Tower		91,892		8,446		67,672		91,567		—		11,737		155,948		167,685		946	1984	1998
5312	Valley Office Plaza		40,642		5,731		24,329		41,860		—		8,957		62,963		71,920		392	1966 2002	1998
5307	Westside Towers		74,383		8,506		79,532		70,238		—		14,568		143,708		158,276		856	1985	1998
5351	100 Wilshire		136,713		12,769		78,447		131,351		—		27,108		195,459		222,567		1,126	1968/2002	1999
4957	11777 San Vicente		25,815		5,032		15,768		26,589		—		6,714		40,675		47,389		228	1974/1998	1999
5310	Century Park Plaza		93,107		10,275		70,761		100,918		—		16,153		165,801		181,954		1,008	1972/1987	1999
5309	Encino Terrace		76,683		12,535		59,554		86,320		—		15,533		142,876		158,409		885	1986	1999
5311	One Westwood		1,452		2,376		29,784		57,759		—		1,179		88,740		89,919		545	1987/2004	1999
9800	Westwood Place		54,190		8,542		44,419		48,317		—		11,448		89,830		101,278		529	1987	1999
5356	Brentwood Saltair		458		4,468		11,615		9,639		—		4,775		20,947		25,722		136	1986	2000
5354	Encino Gateway		54,889		8,475		48,525		47,006		—		15,653		88,353		104,006		554	1974/1998	2000
5355	Encino Plaza		33,621		5,293		23,125		39,883		—		6,165		62,136		68,301		387	1971/1992	2000
5315	Lincoln Wilshire		21,727		3,833		12,484		20,797		—		7,475		29,639		37,114		160	1996	2000
5403	1901 Avenue of the Stars		148,766		18,514		131,752		98,456		—		26,163		222,559		248,722		1,306	1968/2001	2001
5404	Camden/9601 Wilshire		3,226		16,597		54,774		97,927		—		17,658		151,640		169,298		1,061	1962/2004	2001
5402	Columbus Center		11,404		2,096		10,396		8,066		—		2,333		18,225		20,558		118	1987	2001
5401	Santa Monica Square		817		5,366		18,025		18,579		—		6,863		35,107		41,970		229	1983/2004	2001
5410	Warner Center Towers		374,330		43,110		292,147		354,831		—		59,421		630,667		690,088		3,915	1982- 1993/2004	2002
5451	Beverly Hills Medical Center		28,361		4,955		27,766		25,817		—		6,435		52,103		58,538		319	1964/2004	2004
5477	Bishop Place		86,922		8,317		105,651		46,132		—		8,833		151,267		160,100		909	1992	2004
5471	Harbor Court		23,475		51		41,001		19,091		—		—		60,143		60,143		389	1994	2004
5452	The Trillium		—		20,688		143,263		69,237		—		21,989		211,199		233,188		1,251	1988	2005
2200	Brentwood Court		6,686		2,564		8,872		28		—		2,563		8,901		11,464		59	1984	2006
2500	Brentwood Medical Plaza		23,957		5,934		27,836		76		—		5,933		27,913		33,846		182	1975	2006
2600	Brentwood San Vicente Medical		13,690		5,557		16,457		20		—		5,557		16,477		22,034		102	1957/1985	2006
8700	San Vicente Plaza		10,722		7,055		12,035		—		—		7,055		12,035		19,090		93	1985	2006
	Multifamily Properties
1626	Barrington Plaza		117,600		28,568		81,485		140,895		—		58,208		192,740		250,948		1,101	1963/1998	1998
5362	Barrington 555		35,900		6,461		27,639		39,716		—		14,903		58,913		73,816		329	1989	1999
1627	Pacific Plaza		35,400		10,091		16,159		71,034		—		27,816		69,468		97,284		364	1963/1998	1999
5363	The Shores		104,100		20,809		74,191		193,782		—		60,555		228,227		288,782		1,188	1965-67/ 2002	1999
5546	Moanalua Hillside		75,000		24,720		85,895		36,592		—		35,294		111,913		147,207		615	1968/2004	2005
5521	The Villas at Royal Kunia		82,000		42,887		71,376		13,042		—		35,163		92,142		127,305		580	1990/1991/ 1995	2006
1600	Barrington/Kiowa Apartments		—		5,720		10,052		—		—		5,720		10,052		15,772		56	1974	2006
1700	Barry Apartments		—		6,426		8,179		—		—		6,426		8,179		14,605		50	1973	2006
6600	Kiowa Apartments		—		2,605		3,263		—		—		2,605		3,263		5,868		19	1972	2006
	Ground Lease
8304	Owensmouth /Warner		14,720		23,848		—		—		—		23,848		—		23,848		—	N/A	2006
	TOTAL	$	2,760,000	$	547,490	$	2,311,128	$	3,229,999	$	—	$	813,599	$	5,275,018	$	6,088,617	$	32,521

The following is a reconciliation of real estate assets and accumulated depreciation:

	Year ended December 31,
	2006			2005			2004
Real Estate Assets
Balance, beginning of period	$	3,128,742		$	2,804,208		$	2,550,279
Additions—property acquisitions		260,666			274,205			187,779
—improvements		52,577			50,329			100,336
Purchase accounting		2,646,632			—			—
Deductions—property dispositions		—			—			(34,186	)
Balance, end of period	$	6,088,617		$	3,128,742		$	2,804,208
Accumulated Depreciation
Balance, beginning of period	$	(506,258	)	$	(405,228	)	$	(325,674	)
Additions—depreciation		(121,620	)		(106,282	)		(88,082	)
Purchase accounting		595,357			—			—
Deductions—disposals		—			5,252			8,528
Balance, end of period	$	(32,521	)	$	(506,258	)	$	(405,228	)

Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of

Douglas Emmett, Inc.

We have audited the consolidated balance sheet of Douglas Emmett, Inc. (the “Company”) as of December 31, 2006, and the consolidated balance sheet of Douglas Emmett Realty Advisors, Inc. and subsidiaries (the “predecessor”) as of December 31, 2005 and the related consolidated statements of operations, stockholders’ equity (deficit), and cash flows for the period from January 1, 2006 through October 30, 2006 (representing the predecessor), and for the period from October 31, 2006 through December 31, 2006 (representing the Company), and for the years ended December 31, 2005, and December 31, 2004 (representing the predecessor) all included in the Company’s Form 10-K filed on April 2, 2007, and have issued our report thereon dated March 19, 2007. Our audits of the financial statements described above also included the financial statement schedule listed as Exhibit 99.1 of Item 6 of the Company’s Form 10-Q filed for the quarter ended September 30, 2007. This schedule is the responsibility of the Company’s management. Our responsibility is to express an opinion on the financial statement schedule based on our audits.

In our opinion, the financial statement schedule referred to above, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/ Ernst & Young LLP

Los Angeles, California

March 19, 2007