Douglas Emmett Inc
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
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Jun 30, 2025 · Filed Aug 8, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Secured Notes Payable, Net
- Secured Notes Payable, Net
| Description · MaturityDate(1) · Principal Balance as of June 30, 2025 · Principal Balance as of December 31, 2024 · Variable Interest Rate · Fixed InterestRate(2) · Swap Maturity Date | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) | |||||||
| Consolidated Wholly-Owned Subsidiaries | |||||||
| Fannie Mae loan(3) | N/A | $— | $102,400 | N/A | N/A | N/A | |
| Term loan(4) | 8/15/2026 | 415,000 | 415,000 | SOFR + 1.20% | 3.07% | 8/1/2025 | |
| Term loan(4) | 9/19/2026 | 366,000 | 366,000 | SOFR + 1.25% | N/A | N/A | |
| Term loan(4) | 9/26/2026 | 200,000 | 200,000 | SOFR + 1.30% | N/A | N/A | |
| Term loan(4) | 11/1/2026 | 400,000 | 400,000 | SOFR + 1.25% | N/A | N/A | |
| Fannie Mae loan(4)(5) | 6/1/2027 | 550,000 | 550,000 | SOFR + 1.48% | N/A | N/A | |
| Term loan(4) | 5/18/2028 | 300,000 | 300,000 | SOFR + 1.51% | 2.21% | 6/1/2026 | |
| Term loan(4) | 1/1/2029 | 300,000 | 300,000 | SOFR + 1.56% | 2.66% | 1/1/2027 | |
| Fannie Mae loan(4) | 6/1/2029 | 255,000 | 255,000 | SOFR + 1.09% | 3.26% | 6/1/2027 | |
| Fannie Mae loan(4) | 6/1/2029 | 125,000 | 125,000 | SOFR + 1.09% | 3.25% | 6/1/2027 | |
| Fannie Mae loan(3)(4) | 4/1/2030 | 127,200 | — | N/A | 4.99% | N/A | |
| Term loan(6) | 3/3/2032 | 336,134 | 335,000 | N/A | 4.57% | N/A | |
| Fannie Mae loan(4)(7) | 8/1/2033 | 350,000 | 350,000 | SOFR + 1.37% | N/A | N/A | |
| Term loan(8) | 6/1/2038 | 26,272 | 26,739 | N/A | 4.55% | N/A | |
| Total Wholly-Owned Subsidiary Debt | 3,750,606 | 3,725,139 | |||||
| Consolidated JVs | |||||||
| Term loan(4)(9) | 5/15/2027 | 380,000 | 450,000 | SOFR + 1.45% | N/A | N/A | |
| Term loan(4)(10) | 8/19/2028 | 625,000 | 625,000 | SOFR + 1.45% | N/A | N/A | |
| Term loan(4)(11) | 9/14/2028 | 115,000 | — | SOFR + 1.46% | 2.19% | 10/1/2026 | |
| Term loan(4)(12) | 12/11/2028 | 325,000 | 325,000 | SOFR + 2.50% | 6.36% | 1/5/2028 | |
| Term loan(4)(13) | 4/26/2029 | 175,000 | 175,000 | SOFR + 1.25% | 3.90% | 5/1/2026 | |
| Term loan(4) | 6/1/2029 | 160,000 | 160,000 | SOFR + 1.09% | 3.25% | 7/1/2027 | |
| Fannie Mae loan(4)(14) | 1/9/2030 | 61,750 | 61,750 | N/A | 6.00% | N/A | |
| Total Consolidated Debt(15) | 5,592,356 | 5,521,889 | |||||
| Unamortized loan premium/discount, net(16) | 916 | 2,754 | |||||
| Unamortized deferred loan costs, net(17) | (30,551) | (26,621) | |||||
| Total Consolidated Debt, net | $5,562,721 | $5,498,022 | |||||
Except as noted below, our loans: (i) are non-recourse, (ii) are secured by separate collateral pools consisting of one or more properties, (iii) require interest-only monthly payments with the outstanding principal due upon maturity, and (iv) contain certain financial covenants which could require us to deposit excess cash flow with the lender under certain circumstances unless we (at our option) either provide a guarantee or additional collateral or pay down the loan within certain parameters set forth in the loan documents. Certain loans with maturity date extension options require us to meet minimum financial thresholds in order to extend the loan maturity date.
(1)Maturity dates include extension options.
(2)Effective rate as of June 30, 2025. Includes the effect of interest rate swaps (if applicable) and excludes the effect of prepaid loan fees and loan premiums/discounts. See Note 10 for details of our interest rate swaps. See further below for details of our loan costs and loan premiums/discounts.
(3)We closed a $127.2 million loan and used part of the proceeds to pay off a $102.4 million loan during March 2025.
(4)The loan agreement includes azero-percent SOFR floor. If the loan is swap-fixed then the related swaps do not include such a floor.
(5)The loan is secured byfour residential properties. A portion of the loan totaling $472 million has a lender-required out-of-the-money interest rate cap at a weighted average of 8.99% until July 2026. For the portion of the loan relating to Barrington Plaza, in connection with the removal of that property from the rental market during 2023, the lender is treating the debt as a construction loan, and we signed a construction completion guarantee in January 2024. See "Guarantees" in Note 16. The lender also required a $13.3 million cash deposit, which we placed into an interest bearing collateral account during 2023. The lender will return the deposit at the earlier of August 2026 or when the loan is paid in full. The deposit is included in Other assets in our consolidated balance sheets. See Note 7.
(6)We modified and extended the loan forseven years, effective March 3, 2025. The loan consists of a $200 million note that bears interest at 4.5%, of which 2.825% is accrued, and a $135 million note that accrues interest at 6.0%. The accrued interest for both notes is due at maturity and is not subject to compounding. See Note 9 regarding the accrued interest on the loan. The weighted average face rate on the principal balance is 5.10%, and the effective rate as a result of the non-compounding is 4.57%. The loan includes a revolving credit facility of $12.5 million, which accrues interest at 5.5%. As of June 30, 2025, the outstanding balance on the revolving credit facility was $1.1 million.
(7)The loan has a lender-required out-of-the-money interest rate cap at an interest rate of 7.84% until August 2026.
(8)The loan requires monthly payments of principal and interest. The principal amortization is based upon a 30-year amortization schedule.
(9)In May 2025, the JV made a $70.0 million loan principal payment to extend the loan for up totwo years. The related interest rate swaps expired in April 2025, and in May 2025, the JV purchased an interest rate cap which capped the interest rate at 7.45% until May 2026.
(10)The interest rate swaps related to this loan expired on June 1, 2025.
(11)The loan for a fund that we commenced consolidating on January 1, 2025. See Note 3.
(12)The loan requires monthly payments of principal and interest fortwelve months commencing on January 5, 2028 based upon a 25-year principal amortization schedule.
(13)We guaranteed the portion of the loan principal that would need to be paid down in order to meet the minimum debt yield in the loan agreement. See "Guarantees" in Note 16.
(14)The interest rate is fixed at 6% until July 8, 2027 and then increases to 6.25% for the remaining term of the loan.
(15)See Note 13 for our debt fair value disclosures.
(16)Balances are net of accumulated amortization/accretion of $1.3 million and $1.4 million at June 30, 2025 and December 31, 2024, respectively.
(17)Balances are net of accumulated amortization of $56.5 million and $56.9 million at June 30, 2025 and December 31, 2024, respectively.
The table below summarizes our consolidated fixed and floating rate debt:
| (In thousands) | Principal Balance as of June 30, 2025 | Principal Balance as of December 31, 2024 |
|---|---|---|
| Aggregate swap-fixed rate loans | $2,170,000 | $3,130,000 |
| Aggregate fixed rate loans | 551,356 | 88,489 |
| Aggregate capped rate loans | 1,202,000 | 822,000 |
| Aggregate floating rate loans | 1,669,000 | 1,481,400 |
| Total Debt | $5,592,356 | $5,521,889 |
The table below summarizes certain consolidated debt statistics as of June 30, 2025:
| Statistics for consolidated loans with interest fixed under the terms of the loan or a swap | |
|---|---|
| Principal balance (in billions) | $2.72 |
| Weighted average remaining life (including extension options) | 3.7 years |
| Weighted average remaining fixed interest period | 2.3 years |
| Weighted average annual interest rate | 3.78% |
Future Principal Payments
At June 30, 2025, the minimum future principal payments due on our consolidated secured notes payable were as follows:
| Twelve months ending June 30, | Including Maturity Extension Options(1) |
|---|---|
| (In thousands) | |
| 2026 | $965 |
| 2027 | 2,312,010 |
| 2028 | 301,057 |
| 2029 | 2,081,106 |
| 2030 | 190,107 |
| Thereafter | 707,111 |
| Total future principal payments | $5,592,356 |
(1) Some of our loan agreements require that we meet certain minimum financial thresholds to be able to extend the loan maturity.
Loan Premium and Loan Costs
The table below presents loan premium and loan costs, which are included in Interest expense on our consolidated statements of operations:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In thousands) | 2025 | 2024 | 2025 | 2024 |
| Loan premium/discount (amortized)/accreted and written off, net | $83 | $(114) | $166 | $(229) |
| Deferred loan costs amortized and written off | 2,567 | 2,206 | 5,024 | 4,415 |
| Loan costs expensed | 508 | 1 | 522 | 53 |
| Total | $3,158 | $2,093 | $5,712 | $4,239 |
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