Douglas Emmett (DEI) Pushes Back Date of Honolulu Office Purchase

Douglas Emmett (NYSE: DEI) announced that it now expects to exercise its option to purchase the land under one of its Honolulu Office buildings during 2015 rather than 2014. While exercising the option will not have any appreciable impact on its on-going financial results, Douglas Emmett had previously announced that approximately $9 million in non-cash revenue from above/below market leases would be accelerated into 2014 by exercising the option.

The prior guidance provided by Douglas Emmett explicitly assumed the option and associated $9 million in non-cash revenue would be triggered in 2014. The decision to defer exercising the option will reduce expected non-cash revenue from above/below market leases in 2014 by approximately $9 million, which in turn will reduce expected Funds from Operations (FFO) by approximately $.05 per share. Douglas Emmett now expects revenue from above/below market leases in 2014 to be between $13.5 million and $14 million, and FFO per diluted share in 2014 to be between $1.53 and $1.57. The deferral of the exercise of the option does not affect cash NOI or Adjusted Funds from Operations (AFFO).

Assuming that the option is exercised in 2015, Douglas Emmett expects revenue from above/below market leases in 2015 to be between $19.5 million and $20.5 million, including approximately $9 million from the exercise of the option.

The guidance provided above does not take into account such matters as future property acquisitions or dispositions, other capital markets activities, or future terminations of leases before their natural expiration.

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