DEI - Earnings call transcript Q1 2024

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Operator

Pardon me, ladies and gentlemen, sorry for the delay. Thank you for standing by. Welcome to Douglas Emmett's quarterly earnings call. Today's call is being recorded. [Operator Instructions] I will now turn the conference over to Stuart McElhinney, Vice President of Investor Relations for Douglas Emmett.

Stuart McElhinney

you. Thank

live on Crummy, Jordan Seymour, replay our call being today and our our during call and is Kevin website days. CEO; CIO; webcast the the next us available Kaplan, are President CFO. This will XX Joining be our for from and Peter

package find Relations the section of You can at also our our earnings Investor website.

financial call in You today's can during find measures reconciliations discussed of earnings package. non-GAAP the

the statements beliefs we call, assumptions will forward-looking are this based information of forward-looking on and us. course the by, During to of, statements. made make available These currently

known Our that actual results and or will unknown our beyond trends, be ability factors affected and predict. by uncertainties control to risks, are

prove results expectations, and Although to assumptions not reasonable, we our of are can differ that Therefore, from may differences they are our our actual be be to incorrect. some expected future future material. be believe will those guarantees performance and

of our Investor can risks, question-and-answer the more potential please to turn of detailed a portion, section in of to to X Relations over found description be Jordan. we our and limit will website. follow-up. I consideration refer reach For X yourself please When call now which the some in filings others, SEC question the

Jordan Kaplan

morning, Good you us. joining thank and for

excluding of million lease, first quarter, feet XXX,XXX Even we WME we feet During square a the space, still XXX,XXX leasing. leased square that includes with office XXXX. through renewing X.X did which of square lease foot

positive XXX,XXX over just was still quite to leasing feet, absorption. New not enough square drive

said increase a this significant in in new not demand we February, year. assuming As leasing are we

concessions built space challenges economics low. tenant our tenants, the our that not in new leasing existing perform reducing on remain leasing their strong especially needs. Despite our However, us are tells office to which and have we portfolio, rate well smaller large continue demand, our renewal tenants,

still the are quarter XX%. space, the signing for over leases more roll-up same lease are straight-line that than prior valuable with this We

achieved we that over WME straight-line benefited XX%. lease, from lease, that even the number roll-up While excluding of

mentioned prior before, average cost our REITs. that since than have leasing average our the remain long-term office we below pandemic lower other As and actually been of

We in the I supply call growth our markets industries. With diversified the the have demand are emerge in long-term am well downturn Kevin. as and portfolio cycle. that, of from constraints I'll performance to excellent this positioned stronger our over navigate next and confident to high-growth turn

Kevin Crummy

everyone. good Jordan, Thanks, morning, and

Now L.A. residential residential we development are our that final safety finish office of to shifted have remained in floors to markets. our Barrington focus we our X fire stabilized sale Landmark the to the in at and slow for Honolulu, waiting leases and office our at life have expiration the transactions conversion Plaza. Office upgrades

to that However, are available sales we to strategy. With acquisitions into ready opportunities to will our and markets. come pursue markets We similar our remain Stuart. some in turn fit surrounding that I that, starting over will see call hope in soon the

Stuart McElhinney

Thanks, morning, Kevin. Good everyone.

renewal activity During renewal the square history. first square highest was quarter new leases. in signed XXX,XXX leases, including XXX,XXX our million This the feet, of square office and leases covering we of feet X.X quarter, feet second of XXX

As Jordan demand. new the strong rates mentioned, in despite office remained challenges rental large tenant

quarter, This in XX.X% leases. the achieved value of we signed a increase

foot history. now in the office is square rent in-place highest Our per our

positive our increases WME of average our cash lease though impact spread the the lifted Even annual high spreads Our cash straight-line were quarter XX.X%. this fixed rent lower X.X%. signed WME quarter lease, mathematically a this leasing the excluding positive spreads, to

foot recent slightly average below $X.XX foot even office Our per on recent per due costs other the $X.XX well year, to new averaged trend larger above year, per below only leases leasing square during per REITs. quarter some our the costs total of renewals. square our average first Leasing and were

rent roll-ups. healthy essentially remains fully portfolio Our residential at is generating leased and XX.X%

call With discuss results. to I'll to turn that, over the our Peter

Peter Seymour

Stuart. apartments as some refunds. revenue from of decreased recoveries AFFO operating first $XX.X increased new the the by office occupancy, primarily revenue share, offset X.X% quarter morning, market. FFO of and reflecting by lower NOI XXXX, result expenses, to of offset than residential $X.XX Barrington million. compared the from tenant revenue everyone. were rental X.X% X.X%, more lower X.X% decreased to per and results increased partially office and cash by higher lower Plaza to same-property increased property parking rents lower as Thanks, by Good interest tax expense lower And units, by including expenses. a revenues, decreased our Reviewing higher in-place removal

Our of benchmark only G&A our low relative remains group X.X% at to very revenue.

Turning to guidance.

share First operating savings during straight-line expectations have to year. higher straight-line offset be FFO and the guidance the revenue quarter for the because by of expense to operating balance to higher and above was expense. expect be unchanged we we due year expenses, higher lower per expect Nevertheless, FFO we interest the revenue left

year full for $X.XX share. guidance and result, per $X.XX remains between a FFO As

assumptions on package. information the schedule our the earnings underlying refer For please guidance, in to

As we usual, call your our now dispositions assume questions. over can financings. I the future take of will or the impact to acquisitions, not does guidance turn the operator so

Operator

Our Instructions] from Steve Sakwa comes first with question [Operator Evercore.

Steve Sakwa

tenancy, upcoming talk it little And Yes. Jordan, discuss about you leasing, much tours because looking re-tenanting like marketplace? can for given are the pipeline quickly. bit of pretty Warner a kind up out the known good happens a still. more it's it's the apartment Bros.' of just like know morning hard I to the guess, what of maybe in small of what I you're seeing plans the third and quarter? there the vacancy nature really some But in

Jordan Kaplan

Okay.

But trouble the on yes. had website. delay, we the getting about Sorry

terms take reverse. -- in them I'll So in

we they going is we're we out it. Studio to And over kind up. X And it working my away. it's it probably multitude a confident building to single some and tenants in us releasing the hanging will a Plaza, we're we no But hope that lease In tenant, do of a work to it's great terms on are release of move quarters. not of showings, and that and and I'm so having longer building,

a that's whether the one shrinking whether even we tough just And I we going the of that X/X new, is just high when of out to fantastic terms tenants recession, it's in it's by it's happening. And revenue. a because just pipeline, improving not -- XXX,XXX the earnings X/X simply that's some we're or did, driven very is leasing. need that make large because -- investment a But of gains. getting driving leave that we're tenant don't expenses square what's taking new a to ones, into new the tell terms temperatures, mean, new believe guys strong. because feet as I recession, did moves cautious because can pipeline a out, of you of large become or getting not so In deals. and amount larger small of opposed than lease doing are large regardless the great. really of you, they're we're just in and cost for leasing of a capital has their new being creating of But business better We are the know who renewing our one by lot new leasing small I

Steve Sakwa

follow-up Stuart I maybe don't then question, And a Peter. know, or Okay.

be really $X.XX exit think bit at rate kind it next of look seasonality realize the the or a in is what moving at in first of the couple you the quarters you sort of quarter, something did If think little minus forward. we'll expenses. there's And kind 'XX? FFO rate, over about about you like quarterly and you you about of implies I do the as But a think quarter moving cadence where into plus where fourth of of and how guidance run

Peter Seymour

mean Steve. it's -- I Peter, Yes.

the for that So course, And look, We Plaza quarterly asking I factor. really Plaza, guidance. is that of other number But us the affect that's of in The tail Barrington of the end don't quarter. are they quarterly a know right? negative out, So the in give mean year. factors we mentioned, then, last you're Studio there a so move you guidance.

of a see you So those. couple

that we of the also our over You the expense higher -- that saw, be And see, we is to reflects raised year. remainder interest as interest expectations you guidance. going

you So where a sense can give of we're I headed. that think

Operator

comes with JPMorgan. Paolone Your Anthony next from question

Anthony Paolone

guidance, I about maybe just but quarterly the for about same also your the sounds range the know just stronger. like thinking year, coming talked but kept in occupancy, this retention because you you the

bit any So if you part there? on at troughs, this with there's anything or comfortable of thoughts more range changed like a point? has that a Or feel when that that

Jordan Kaplan

but was I'd pretty was because the want probably still was of But the Well, the lower-than-expected thought that we I'm with why hit I'll to that in I just tell that's comfortable gave year this unsurprised new range. think the to we but middle I had still, of year, range, I then the a surprised we're trough. we're little you, backed hiring, inflation maybe don't this that out. the I came up, a say but always because middle

important back. time I in long know can't with with and, make -- economic signing better a absorb by which we're think said, not larger new point, oversupply large and floating that I We're old are way. hit trends. I scaling economy, don't we're that's simple can't all to you than money. have they buildings I and of everything happening, like I we to us, I we're probably this thing So lease. space because And national feel take not space really that they of is one hit impacting mean it. we stay I not the have mean impacted -- to business tenants getting that going -- and not which really have they're getting work-from-home. -- therefore, be in just the on information have even have do like We just and we're rest is,

good, Friday doing we're people actually little the about are we've the about we're People of cost maybe to lot of is I control company, So a in leasing. our all climbing capital putting it. I market There and a economy market. a light, right, good. of you'll the confidence else just like the There's that's for expenses. in nothing in like activity We're new out of our working be out. full. in is but you'll terms market basically office, little and think say, Actually, to crazy we're mean then will hit it's bad. -- Because is that's bottom, utilization, most our the have then waiting everything

So I can't see anything else.

So it to the prediction the economy new of down gets investment encourage. all Fed encouraging of about which opposite large is again, I kind national trying what ours the to think all of is

Anthony Paolone

market, your question just can in comment just may my activity markets seeing, own also and is, capital where other just values you maybe right to investment And now? of then or out capital your put on And be? sort any desire you're sales any

Kevin Crummy

it's absorbing headlines Kevin. is right Anthony, the Look, all now. Downtown

is as surrounding there the so my remarks, in I mentioned in And activity, markets.

very, going want as haven't confident this are some shunning the that capital and going can that fit to based that long market we We the activity really very office to many we confident our putting definitely we're incredible we're seen that -- office really are at on we office. And in very are good out demand, buy and think because in markets investment buying well, interested that in pricing. But fundamental buildings here, some that the objectives. we're with opportunities there much as properties our people as on we be do market supply to as term most

Operator

question next Goldfarb Sandler. with Piper comes Alexander The from

Alexander Goldfarb

Jordan, larger tenants Steve the to Sakwa's and the on back just going tenants. question

understand. Because, work-from-home of L.A., outpost? that, issues, still West it's talking is certainly, a are companies L.A. to described to these your the your investment. XXX,XXX contending, larger point, are XXs, you've their oversupplied, matter to the versus is not investment XXs, like that where millions huge markets office and -- of tenants The or tenants restaffing other they're side elsewhere? trying are square dollars you're whatever, small. footers emphasizing is XXs Meaning that choosing and Just of Given this grow where as not

into just So smaller the get mindset these of to compared better of to bigger color Because certainly, CBD your tenants yours. brethren. trying they're larger

Jordan Kaplan

now saying. a we need tenant never and tech just need we're layoffs we're even of tech tenants we don't not "We're companies, about again. our again abandoning the research what that, mean the do not think that's space, you, And think seeing or drives West L.A. out to think I don't of knowing people statistics guess actually are of tenants larger of them That's California And state, I don't problem is and the see you're lot the a movement is of use, one going I that. L.A. And hire say, happy you are abandoning out we from population right people which leaving." at I'm I'll space I not "Great say, that that you're it now." to they or we're relocate the of companies, think for large amounts think taking good asked only happened. But our markets. kind California admit, of question, And space space. actually. need saying I've they're than L.A., this seeing of out still don't what of of been some but like are I happening choosing that's We're I in gist not just they're which doing guys don't hearing. large now. And lot companies, entertainment or never that I coming a

off they're think and our less laying literally costs. saying just cutting space I taking people we're and

Alexander Goldfarb

Okay. your look And mean, that I business, landlords is, sense is would invest to you play maybe that given how capital absorption, position, second it that's in that the out I want that, for just case, because think sheet your seeing stressed fund more. asset, get capital and landlords the some tangible really? would tangible of not at where your a you institutional balance the to TI, the -- down be the peers, your you to able are negative advantage, seeing why maybe that would commission, just you there but to signs or your to are trying have bps position... landlord you're signs question XX is that's not I guys you where what-have-you. Are peers, the win believe I'm maybe or financially willing who as

Jordan Kaplan

you're Yes. definitely I will tell think. saying, you, I of what part

most are expense -- around, not there I decision the landlords I'm is to they But think a over-leveraged, decision or I coming or the vacancy whether about and have over-leveraged. not that up, maybe all of And also be tiny might where even up decision going might a like lease capital do to to that we don't don't a and building even through suffering want that the I a that we'll we right retain go dedication the even think in expertise it's there have a the that's work just I maybe they're and have just maybe they're have loan about to of to the there battle a opportunities. building. rest. That probably opportunities be terms -- And now, create over-leveraged own don't of they "Boy, will saying, people see. this that anymore." of amount

a they've wanting around I slide leasing lot and the load building load, through of not revolve inattention out think carry the where distraction. most let them being of of or rest up operating the the a will people occupancy burned to just

Operator

from next Michael question Griffin with Citi. comes And the

Michael Griffin

to back space commentary interpret I And rents? of negative come to some to you this that large takers the you tenants rather as there your being hesitant large up cut net meaning later go maybe year? for could Should commit guys? back kind look wanted to of smaller you be absorption to wait going charge possible for the that is is on we that would and to Or so higher would it continued leases. to space

Jordan Kaplan

small very of what cutting we year. to of super space, this in tenants the lease in But or to is, up fast absorption is it we're we fast. space up our because cut Well, whatever guidance think terms

to go, space to a process. talking fast." being like just Now a XXK that I to marathon cut a a going is wants guy fast run run up much and "I'm to longer it's mean

So when hang we out. don't we -- but

takes great up it because we do a that and a you to lease a there's and -- large you floor, floor have for focused to out. a expertise we And and amount probably that. get cut we If be think just if it tenant a such it's back, able that of takes good don't very and

in quickly we it a tenants, kind is that's the we've lease have where have company we and up. we're them and superpowers, to to And in space. And been I that extent, up losses. it losses one as of to the then expertise getting market with That's for giant space, it, that take it the construction that cut that know Because And why X put us. little around so getting just that And like to doesn't both can able -- we've spaces quickly. a our of break we gotten have X-floor not to we is, lost the are very appealing very up and leased the we're feel great difference colossal like edges, and we're made dealt like is.

probably into want that's with I God, go the through has for And got I tenants buildings why had back architect, think hire one to out to small with contractor, and before my large might that's of have got like, to don't I a And got to an hire to I is got floor, this, me space the a I this lease. have to step got mean, and I multi-tenant I a planners, which last plans, I But of saying buildings it." even higher a deal they're it city to that they're relates I be -- saying which for -- themselves, very to "Oh So question, that people move deal. kind their big been that good some tenants. is and there's turn

we're us, market in something that create it is at. this might the that best opportunities positive for and I'm So

Michael Griffin

a move then to really do you to leases quarterly those And needle? actually Jordan, doing in how many the are do a of quarter basis? how many need you large And on

Jordan Kaplan

X. need over foot do large quarter. do used way, to we And to be is XX,XXX like or X leases. We to every feet. by and we're that X doing XX,XXX the X, have big. doesn't like XX,XXX to And It

we need just couple So to back. a more get

Michael Griffin

if give Got Stuart, on you lease. early more right? And you. spreads little GAAP rent think William color concessions? the ex WME lease? And the but offer spreads cash then can Why lease, on I you the Anything give could then, gave termination you I the Morris us was curious the the ex a rent

Jordan Kaplan

to questions, want Stuart? answer all You on

Stuart McElhinney

Yes.

me, them had. expect. -- of They take roll-up cash order, the XXXX. The in considering gave Very concessions lease. that have of out But amount very TIs years, was they made us in, don't out think that without in full We've small space. back the me. in was straight-line didn't their renewed figure quarter, Morris. in number They XX as deal. this size. so XX.X%. don't I of tenant it But of they extended and that our larger front roll-up, remember concession, I They Very I the than better excluding They William reasonable that. importantly, of average especially took was the point. tenant exact the prior slightly It space on it you a that that. reasonable, the to than all have give I I were any. front negative

Operator

The next with from Rich question Wedbush. comes Anderson

Richard Anderson

are out just not. didn't release building Or So But this on even not take into you why the that. future a you're bulky up let single hope for process? even yourselves? of there? I So described again. maybe entertaining gee, full break driving back building I tenant situation that the out and you're as the good you Bros. that a sort Why understand why at, just it's to you of said, not Warner Jordan,

Jordan Kaplan

never a done, instead we you have make us. of -- you going You and is reverse, deal dealt that it's will a what but real I this with. But better, which when do so we we get say, right? know I don't in that for we'll I that's have there, of building to that with much know that right, and You doing we should we we're have know know that else get that. I leasing to just why nature faster probably that, that insist. it tenant that we big I resistance? a we're going we're -- like to that estate I what? the floors in makes I deals, than comes, And We'll need start us, do say built it our full hope might into in think probably and get deal, anyone do That's here can of don't say, that's we kind "I So another know would business, start couple up. tenant and eat, it." a

outstanding in It's The is to it's run think that's, spectacularly building. So best is run the way best I the the building building. end, to located. that the way an --

space. people can have looking are what We It a Exactly has we amazing amenity signage offer. huge for.

it. to we event X, So the we kind and I'm then lease very is that reason and and the what my get X no is don't face the that's way tenants, risk. the X, success take this try would we as up, a longer happens of it that have that's But have we that confident there's why one said, and building. hope come of And I probably chance in and tenant that

Richard Anderson

Okay.

question, multifamily periods, in X. million. $XX.XXX the were And looking at revenues Second on just the exactly same Slide stats both same-store

of make that's typo. a not First all, sure

the Was this performance if what in Barrington's Was multifamily revenue? anything Second, Just out flattened there's impact? curious onetime-ish else? it quarter. there something

Jordan Kaplan

that's I same Barrington going I think saying is Yes. of multifamily down, is that those the is exact at insane mean they're going and all kind mean and it. revenue looking numbers. I are up you're

Peter Seymour

not is there. Barrington So in

Richard Anderson

good. That's

Okay.

Peter Seymour

quarter-to-quarter variability and... on we're to going revenues Look, some always have

Richard Anderson

in Not case. this

Peter Seymour

know. -- I nothing... yes. No, nothing There's There's

Jordan Kaplan

I the includes number, same Variability guess.

out. sure accountants quadruple a before that's typo. But is. look goes not of get I this lot triple, We at think it a that check it let's Okay, don't thing

Peter Seymour

That's right. No, multiple we've looked it at several times. times,

Richard Anderson

right. All

it's right what number? explains then we the assume then mean there's it's not... -- So I the flatness nothing if

Peter Seymour

don't rent in your changes buildings. increases and on. unusual anything I have you occupancy you there's think in look, have going different mean, I Yes.

Jordan Kaplan

think or for can in lot same an it's something -- for -- to don't I they explanation land here you. at and a you I pretty know the there's don't at that's number, if there's I downs a harder meaningful happen and If explain. ups decrease, look it. think have increase of we the to cost

Richard Anderson

it's in think more multifamily your just little product, a bit predictable a on. little I different, bit so and

So it leave I'll that. me. to just occurred it But at

Operator

The Jefferies. next comes with question from Abramowitz Peter

Peter Abramowitz

Just pockets seeing wondering if could kind on you of different demand submarkets. comment the you're within of the

think looking I Boston West L.A. other of Properties a parts stronger mentioned than on their lot City call Century Monica and Santa

So your context just thoughts if curious provide that. on you some could and own

Stuart McElhinney

Yes.

definitely, I large left think we've have well. Century some tenants. that lines downtown LA. are saw before, the some as very up made gains Century has we that with of been beneficiary in a discussed in tenants These what City. City quarter We generally as

say the and that, not So said, Century are continuing positive well. Other we're to I'd new doing the than served our go -- has Jordan City markets. quite demand tenant seeing see, large well rest in in of as there our enough that we're quite to market as well, buildings leasing

Peter Abramowitz

prioritizing If a Got where think And kind it. done tenants if those any filled need then is they spillover guess, can't I they guess guys just it find I in have from what -- going? up I you on Century of are there, where That's Century helpful. follow-up City? City, that. pretty there's

Jordan Kaplan

give an where corridor go. answer. Westwood is The I are that and can't But exact would natural they I alternatives expect you Hills, Wilshire Beverly

Operator

with Green from Street. Burzinski comes question Dylan next The

Dylan Burzinski

guys as cost back as several your insurance year and maybe see to the continue I going taxes, sense a the get then headwind. can you mean remainder front XXXX? to quarters that it you Just you this being property relief on And higher the of potential know I is ago flagged through

sort the coming if in curious sort a that if near future? guys have through you to you that way and up guys of of risk Just your expense being potentially envision worked or growth

Jordan Kaplan

appeals to the I it's Well, to be we in file your adjustments. property that answer will likely that terms question able think and of get taxes, simple is

meaningful the old paying mean -- they have I even to be Now get not if them in -- that, if you the the impact years away. you it a when do it, you years can challenge to is it to they're refund, years takes keep even going accept because number. on way before

when So we is. second they're the overstating buildings, your from your disjointed in. the of although they're when having value now refunds, question? first are figuring as of the roles went many like the -- seems right what very the value -- get was assessor But That anybody was course, appeal as they're trouble of complete probably original out it much buildings

Dylan Burzinski

can Just yes. flag if -- you guys insurance

Jordan Kaplan

Yes.

the But So to we causing work rest of had really a They're some years. were in as insurance liability couple but all it's And us claims of dramatic have last still insurance the right they to not bad insurance. increases are keep increases those now, probably industry costs insurance. is in in I hard think it. property on many of fronts, line. and the terms claims, there as going just not through in lot to

up because taking making do risks to of Although are think costs policies, general, I to including some But we're claims. the we're increases. pretty stuff like world, that, at in and the things around early happening I'd and We're very caught good we're because that all our at controlling of just say, able in adjustments it it, good actually.

And so as was I the couple last years. it's it don't of as bad think

Dylan Burzinski

That's just helpful. on parking. then one quick a And maybe

upside we Is other even are in drive until expect potential further to income rate absent this the that of guys office? parking run pre-COVID You additional you levels. guys there occupancy below gains? still sort to able some should occupancy are Or is

Jordan Kaplan

Okay.

up that's high -- is relative actually is get occupancy increase income to parking parking. think So left I is get occupancy all to to higher to and

to already we've back all get exceeded, up. probably So that's at level our a rates think the accurately, for Because above. to way are got have even -- more occupancy of those left I we we've and we're actually as now,

Dylan Burzinski

parking? are sorry, said you cut out, And of up kind rates on you

Jordan Kaplan

Yes.

up. actually of So occupancy rates for the we're level now, are at

there's all left, before, have And number just people but lease left to we space coming into it not and probably the up. could back that's then that to more more -- gross make if it's leasing not comparing more Because like all the the mean gross gains is that's continue finish So -- just then get the way the building. space. you're and to to lease just -- number to rate I we is is way, easiest overcome

Dylan Burzinski

sense. Makes

Operator

Capital comes KeyBanc And the next Rana question Markets. from with Upal

Upal Rana

your let year to this So versus with were you that in expiring like today? follow-up, the you your changed? you has are of priced rate that X many beginning how have those where it -- swaps $X guidance loans Is initial And of float, expectation cuts about a had what still as or your billion sort total.

Jordan Kaplan

cuts? many How rate

Upal Rana

Yes, of... in terms

Peter Seymour

our changed guidance from to now. Assumptions first

Jordan Kaplan

How Oh. we Rate what we rates have to the many increases. expect increased times be...

Peter Seymour

No.

If basically, mean, we that's I people to curve. of just the our do used. essentially interest have guidance, I we're obviously, over We at curve, our going you're -- the when forward And mean, the on year. SOFR guidance happen putting together. the curve looking at use what's that the of we points it's what look, rest forward the different view time

for curve higher longer. is stay the So expecting obviously, to rates

Operator

The from Alexander Goldfarb Sandler. with next Piper question comes

Alexander Goldfarb

to maybe responses. Alex ask still -- wants in on about spattered Question said Garfaf Alex Goldfarb. Stuart, the and follow-up. in the I'm But a this -- you

the you that what out. the those other items? below quarter? OpEx Were first were on. insurance, trends? about taxes. won't about first X And the items estate were in Were those quarter You were your spoke real to then referencing think continue the break guys Just trying expectations savings that the spoke you just in why in But

Peter Seymour

Alex. my And mean name I No. hasn't it's Yes. Peter, changed. Yes.

mean this quarter. That a of the the portion I about was in we tax up talked So refunds.

things were expenses The different other mean the that's savings, bunch of I and to factor closely. of really mean, some they year. difference, the timing categories, in are that in we're a the pretty in and was guidance for come there a and you controlling in back is timing But Hard some that our later may just year. say. I it

Alexander Goldfarb

new the is your front, that's the activity issue. Yes. pretty renewal It's But leasing Peter, that healthy. on

doesn't leasing, what there operating it point, that that fair based Is the at hesitant it is. to is further? potential that commit market like sort savings So like to it almost on like have the really be because way. you're way? guys this hesitancy it sounds sounds guidance sound It sounds that you maybe a of But change to some is could

Peter Seymour

The all the biggest good outweighs factor is right? that increase interest we things about. expense, And talked that the in

the straight-line in we're and So saw our But as expense yes, anticipating guidance, our see pretty we in we the assumptions. increases some steep in yes, also you interest change expense, increased savings.

Alexander Goldfarb

what Right. But Peter. are I interest you me flat. certainly ask Yes. we rates let to if mean know this, assume be you going

operating in question you my same through first would of the that guidance, exceed All through balance is, quarter the end? So the year, the level you high achieve -- that the would else put savings you top at equal. of the end if make of

Peter Seymour

a we year, bunch savings the because complicated. It give if -- we of relatively would depends to maintain we're rest the all probably. savings different on able guidance it the a consolidating are. through gets range Not of JVs, where of were But obviously, expense savings the

Jordan Kaplan

But Well There there's some it. -- savings which mentioned, savings. some overwhelmed costs interest property permanent taxes, savings, and there's are okay. from timing the he

saying savings. so That's is, all then And you have costs, correct. interest if if we'd just you're didn't any have

Alexander Goldfarb

no, if that, like I -- meant don't didn't assume I just Jordan. Cool. we okay. mean No,

Operator

This conference any Jordan concludes for question-and-answer now I remarks. back to would like over Kaplan our to the session. turn closing

Jordan Kaplan

joining for us. you thank Well, Okay.

And at later. beginning. of most care. the speaking about Take you sure be the sorry I'm individually And delay to we'll

Operator

has presentation. conference now attending today's concluded. you The for Thank

disconnect. now may You

Douglas Emmett (DEI) 8 May 242024 Q1 Earnings call transcript