10-Q

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

Commission file number 001-33106

Douglas Emmett, Inc.

(Exact name of registrant as specified in its charter)

Maryland	20-3073047
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

808 Wilshire Boulevard, Suite 200, Santa Monica, California	90401
(Address of principal executive offices)	(Zip Code)

(310) 255-7700

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes  x No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 Yes  ¨No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at	October 28, 2016
Common Stock, $0.01 par value per share	151,526,990	shares

1

DOUGLAS EMMETT, INC. FORM 10-Q
Table of Contents
		Page
	Glossary	3
	Forward Looking Statements	4
	PART I. FINANCIAL INFORMATION
Item 1	Financial Statements (unaudited)	5
	Consolidated Balance Sheets	5
	Consolidated Statements of Operations	6
	Consolidated Statements of Comprehensive Income	7
	Consolidated Statements of Cash Flows	8
	Notes to Consolidated Financial Statements	10
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3	Quantitative and Qualitative Disclosures About Market Risk	47
Item 4	Controls and Procedures	47
	PART II. OTHER INFORMATION
Item 1	Legal Proceedings	48
Item 1A	Risk Factors	48
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3	Defaults Upon Senior Securities	48
Item 4	Mine Safety Disclosures	48
Item 5	Other Information	48
Item 6	Exhibits	48
	SIGNATURES	49

2

Glossary

Abbreviations used in this document:

ASU	Accounting Standards Update
ATM	At-the-Market
CEO	Chief Executive Officer
CFO	Chief Financial Officer
Code	Internal Revenue Code of 1986, as amended
Company	Douglas Emmett, Inc.
EPS	Earnings Per Share
Exchange Act	Securities Exchange Act of 1934, as amended
FASB	Financial Accounting Standards Board
FDIC	Federal Deposit Insurance Corporation
FFO	Funds from Operations
Fund X	Douglas Emmett Fund X, LLC
Funds	Unconsolidated real estate funds
GAAP	Generally Accepted Accounting Principles
LIBOR	London Interbank Offered Rate
LTIP Units	Long-Term Incentive Plan Units
NAREIT	National Association of Real Estate Investment Trusts
OP Units	Operating Partnership Units
Operating Partnership	Douglas Emmett Properties, LP
Partnership X	Douglas Emmett Partnership X, LP
PCAOB	Public Company Accounting Oversight Board (United States)
REIT	Real Estate Investment Trust
Report	Quarterly Report on Form 10-Q
SEC	Securities and Exchange Commission (United States)
Securities Act	Securities Act of 1933, as amended
TRS	Taxable REIT subsidiary(ies)
US	United States
VIE	Variable Interest Entity

Defined terms used in this document:

Annualized rent Annualized cash base rent (excludes tenant reimbursements, parking and other income and lost rent recovered from insurance) before abatements under leases commenced as of the reporting date and expiring after the reporting date. For our triple net office properties (in Honolulu and two single tenant buildings in Los Angeles), annualized rent is calculated by adding expense reimbursements to base rent.

3

Forward Looking Statements

This Report contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act.  You can find many (but not all) of these statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "could", "may", "future" or other similar expressions in this Report.  We claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995.  We caution investors that any forward-looking statements presented in this Report, or those that we may make orally or in writing from time to time, are based on our beliefs and assumptions, as well as information currently available to us.  The actual outcome will be affected by known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict.  Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect.  As a result, our actual future results can be expected to differ from our expectations, and those differences may be material.  Accordingly, investors should use caution when relying on previously reported forward-looking statements, which were based on results and trends at the time they were made, to anticipate future results or trends.

Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include the following:

• adverse economic or real estate developments in Southern California and Honolulu, Hawaii;

• a general downturn in the economy, such as the global financial crisis that commenced in 2008;

• decreased rental rates or increased tenant incentive and vacancy rates;

• defaults on, early termination of, or non-renewal of leases by tenants;

• increased interest rates and operating costs;

• failure to generate sufficient cash flows to service our outstanding indebtedness;

• difficulties in raising capital for our unconsolidated Funds;

• difficulties in identifying properties to acquire and completing acquisitions;

• failure to successfully operate acquired properties;

• failure to maintain our status as a REIT under federal tax laws;

• possible adverse changes in rent control laws and regulations;

• environmental uncertainties;

• risks related to natural disasters;

• lack or insufficient amount of insurance, or changes to the cost of maintaining existing insurance coverage;

• inability to successfully expand into new markets and submarkets;

• risks associated with property development;

• conflicts of interest with our officers;

• changes in real estate zoning laws and increases in real property tax rates;

• the negative results of litigation or governmental proceedings;

• the consequences of any possible future terrorist attacks or wars; and

• the consequences of any possible future cyber attacks or intrusions.

For further discussion of the above risk factors, see "Item 1A. Risk Factors" in our 2015 Annual Report on Form 10-K.

This Report and all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.  We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances after the date of this Report.

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Douglas Emmett, Inc. Consolidated Balance Sheets (Unaudited; in thousands, except share data)
	September 30, 2016			December 31, 2015
Assets
Investment in real estate:
Land	$	1,025,704		$	897,916
Buildings and improvements	7,215,310			5,644,546
Tenant improvements and lease intangibles	795,600			696,647
Property under development	45,535			26,900
Investment in real estate, gross	9,082,149			7,266,009
Less: accumulated depreciation and amortization	(1,855,427		)	(1,687,998		)
Investment in real estate, net	7,226,722			5,578,011
Real estate held for sale, net	—			42,943
Cash and cash equivalents	158,415			101,798
Tenant receivables, net	2,168			1,907
Deferred rent receivables, net	90,480			79,837
Acquired lease intangible assets, net	4,990			4,484
Interest rate contract assets	—			4,830
Investment in unconsolidated real estate funds	144,930			164,631
Other assets	17,568			87,720
Total assets	$	7,645,273		$	6,066,161
Liabilities
Secured notes payable and revolving credit facility, net	$	4,401,851		$	3,611,276
Interest payable, accounts payable and deferred revenue	94,792			57,417
Security deposits	46,144			38,683
Acquired lease intangible liabilities, net	74,151			28,605
Interest rate contract liabilities	28,046			16,310
Dividends payable	33,248			32,322
Total liabilities	4,678,232			3,784,613
Equity
Douglas Emmett, Inc. stockholders' equity:
Common Stock, $0.01 par value, 750,000,000 authorized, 151,126,112 and 146,919,187 outstanding at September 30, 2016 and December 31, 2015, respectively	1,511			1,469
Additional paid-in capital	2,719,856			2,706,753
Accumulated other comprehensive loss	(23,661		)	(9,285		)
Accumulated deficit	(805,529		)	(772,726		)
Total Douglas Emmett, Inc. stockholders' equity	1,892,177			1,926,211
Noncontrolling interests	1,074,864			355,337
Total equity	2,967,041			2,281,548
Total liabilities and equity	$	7,645,273		$	6,066,161

See accompanying notes to the consolidated financial statements.

5

Douglas Emmett, Inc.

Consolidated Statements of Operations

(Unaudited; in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenues
Office rental
Rental revenues	$	128,744		$	103,436		$	366,400		$	307,895
Tenant recoveries	12,914			11,074			34,111			32,687
Parking and other income	25,950			21,715			74,572			63,890
Total office revenues	167,608			136,225			475,083			404,472
Multifamily rental
Rental revenues	22,801			22,133			67,634			65,752
Parking and other income	1,712			1,719			5,191			5,119
Total multifamily revenues	24,513			23,852			72,825			70,871
Total revenues	192,121			160,077			547,908			475,343
Operating Expenses
Office expenses	56,926			49,195			158,190			139,936
Multifamily expenses	5,950			6,191			17,322			17,941
General and administrative	8,099			6,867			25,573			21,701
Depreciation and amortization	63,827			52,229			181,947			153,309
Total operating expenses	134,802			114,482			383,032			332,887
Operating income	57,319			45,595			164,876			142,456
Other income	2,295			2,129			6,527			13,103
Other expenses	(1,728		)	(1,605		)	(4,963		)	(4,796		)
Income, including depreciation, from unconsolidated real estate funds	2,334			898			5,564			3,548
Interest expense	(36,479		)	(32,705		)	(109,842		)	(101,521		)
Acquisition-related expenses	(1,188		)	(153		)	(2,865		)	(641		)
Income before gains	22,553			14,159			59,297			52,149
Gains on sales of investments in real estate	13,245			—			14,327			—
Net income	35,798			14,159			73,624			52,149
Less:  Net income attributable to noncontrolling interests	(3,950		)	(2,089		)	(7,928		)	(7,932		)
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217
Net income attributable to common stockholders per share – basic	$	0.210		$	0.082		$	0.440		$	0.302
Net income attributable to common stockholders per share – diluted	$	0.206		$	0.080		$	0.428		$	0.293
Dividends declared per common share	$	0.22		$	0.21		$	0.66		$	0.63

See accompanying notes to the consolidated financial statements.

6

Douglas Emmett, Inc.

Consolidated Statements of Comprehensive Income

(Unaudited and in thousands)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net income	$	35,798		$	14,159		$	73,624		$	52,149
Other comprehensive income (loss): cash flow hedges	18,429			(8,237		)	(17,069		)	4,148
Comprehensive income	54,227			5,922			56,555			56,297
Less: Comprehensive (income) loss attributable to noncontrolling interests	(9,048		)	(843		)	(5,235		)	(8,841		)
Comprehensive income attributable to common stockholders	$	45,179		$	5,079		$	51,320		$	47,456

See accompanying notes to the consolidated financial statements.

7

Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)

	Nine Months Ended September 30,
	2016			2015
Operating Activities
Net income	$	73,624		$	52,149
Adjustments to reconcile net income to net cash provided by operating activities:
Income, including depreciation, from unconsolidated real estate funds	(5,564		)	(3,548		)
Gain from insurance recoveries for damage to real estate	—			(82		)
Gains on sales of investments in real estate	(14,327		)	—
Depreciation and amortization	181,947			153,309
Net accretion of acquired lease intangibles	(13,415		)	(15,806		)
Straight-line rent	(10,915		)	(4,463		)
Increase in the allowance for doubtful accounts	1,190			151
Amortization of deferred loan costs	5,470			5,136
Amortization of stock-based compensation	7,077			5,973
Operating distributions from unconsolidated real estate funds	1,356			762
Change in working capital components:
Tenant receivables	(1,451		)	(48		)
Interest payable, accounts payable and deferred revenue	37,389			14,589
Security deposits	7,461			613
Other assets	(4,179		)	(3,084		)
Net cash provided by operating activities	265,663			205,651
Investing Activities
Capital expenditures for improvements to real estate	(57,771		)	(52,833		)
Capital expenditures for developments	(18,635		)	(2,636		)
Insurance recoveries for damage to real estate	—			82
Property acquisitions	(1,619,760		)	(89,906		)
Proceeds from sales of investments in real estate, net	348,203			—
Proceeds from repayment of note receivable	—			1,000
Loan payments received from related parties	763			906
Contributions to unconsolidated real estate funds	—			(24		)
Capital distributions from unconsolidated real estate funds	21,973			5,711
Net cash used in investing activities	(1,325,227		)	(137,700		)
Financing Activities
Proceeds from borrowings	1,589,500			1,099,400
Repayment of borrowings	(786,156		)	(1,060,579		)
Loan cost payments	(18,239		)	(8,164		)
Contributions from noncontrolling interests in consolidated joint ventures	459,750			—
Distributions paid to noncontrolling interests in our Operating Partnership	(26,185		)	(17,549		)
Cash dividends paid to common stockholders	(97,575		)	(91,775		)
Proceeds from exercise of stock options	—			1,823
Taxes paid on exercise of stock options	(53,467		)	—
Repurchase of OP Units	(826		)	—
Proceeds from issuance of common stock, net	49,379			—
Net cash provided by financing activities	1,116,181			(76,844		)
Increase (decrease) in cash and cash equivalents	56,617			(8,893		)
Cash and cash equivalents at beginning of period	101,798			18,823
Cash and cash equivalents at end of period	$	158,415		$	9,930

8

Douglas Emmett, Inc.
Consolidated Statements of Cash Flows
(Unaudited and in thousands)

	Nine Months Ended September 30,
	2016			2015
SUPPLEMENTAL CASH FLOWS INFORMATION
OPERATING ACTIVITIES
Cash paid for interest, net of capitalized interest of $793 and $701 for the nine months ended September 30, 2016 and 2015, respectively	$	104,205		$	96,617
NONCASH INVESTING TRANSACTIONS
Accrual (increase)/decrease for capital expenditures for improvements to real estate and developments	$	(68	)	$	1,427
Capitalized stock-based compensation for improvements to real estate and developments	$	683		$	610
Write-off of fully depreciated and amortized tenant improvements and lease intangibles	$	13,746		$	10,751
Write-off of fully amortized acquired lease intangible assets	$	1,241		$	36
Write-off of fully accreted acquired lease intangible liabilities	$	11,142		$	22,496
Settlement of note receivable in exchange for land and building acquired	$	—		$	26,500
Issuance of OP Units in exchange for land and building acquired	$	—		$	1,000
Application of deposit to purchase price of property	$	75,000		$	2,500
NONCASH FINANCING TRANSACTIONS
Loss from market value adjustments - our derivatives	$	(37,927	)	$	(21,975	)
Loss from market value adjustments - our unconsolidated Funds' derivatives	$	(814	)	$	(2,483	)
Dividends declared	$	98,501		$	92,087
Common stock issued in exchange for OP Units	$	17,733		$	18,101

See accompanying notes to the consolidated financial statements.

9

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited)

1. Overview

Organization and Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. We focus on owning, acquiring, developing and managing a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

Through our interest in our Operating Partnership and its subsidiaries, our consolidated joint ventures and our unconsolidated Funds, we own or partially own, acquire, develop and manage real estate, consisting primarily of office and multifamily properties in Los Angeles, California and Honolulu, Hawaii.

As of September 30, 2016, we owned a consolidated portfolio of (i) fifty-nine office properties (including ancillary retail space), which included seven office properties owned by our consolidated joint ventures, (ii) ten multifamily properties and (iii) fee interests in two parcels of land subject to ground leases from which we earn ground rent income. Alongside our consolidated portfolio, we also manage and own equity interests in our unconsolidated Funds, which at September 30, 2016, owned eight additional office properties, for a combined sixty-seven office properties in our total portfolio.

The terms "us," "we" and "our" as used in these financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis.

Basis of Presentation

The accompanying financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated joint ventures.  All significant intercompany balances and transactions have been eliminated in our consolidated financial statements.

As of September 30, 2016, our consolidated financial statements included two consolidated joint ventures which were determined to be VIEs and we are deemed to be the primary beneficiary. The VIEs were established in 2016 in connection with the acquisition of properties by the respective joint ventures. See Note 3 for information regarding the properties that were acquired by these joint ventures in 2016. As of September 30, 2016, the impact of consolidating the VIEs increased our total assets, liabilities and equity by $1.81 billion (of which $1.73 billion related to investment in real estate), $790.7 million and $1.02 billion (of which $738.8 million related to noncontrolling interests), respectively.

During the third quarter of 2016, we sold a property which was classified as real estate held for sale in our consolidated balance sheets. The carrying value in the comparable period has been reclassified to conform to the current period presentation. See Note 3 for information regarding the property that we sold.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The interim financial statements should be read in conjunction with the consolidated financial statements in our 2015 Annual Report on Form 10-K and the notes thereto. Any references in this report to the number of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our financial statements, in accordance with the standards of the PCAOB.

10

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

2. Summary of Significant Accounting Policies

During the period covered by this Report, we have not made any material changes to our significant accounting policies included in our 2015 Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Income Taxes

We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.

New Accounting Pronouncements 

Changes to GAAP are established by the FASB in the form of ASUs.  We consider the applicability and impact of all ASUs.

Recently Issued and Adopted Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items (Subtopic 225-20)", which eliminates the concept of extraordinary items from GAAP. The FASB is issuing this ASU as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis (Consolidation - Topic 810)", which provides guidance regarding the consolidation of certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments", which amends "Business Combinations" (Topic 805). The ASU requires that an acquirer (i) recognize adjustments to provisional amounts from business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, (ii) record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and (iii) disclosure of the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In March 2016, the FASB issued ASU No. 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships", which amends "Derivatives and Hedging" (Topic 815). The ASU provides guidance on the effect of derivative contract novations on existing hedge accounting relationships. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not in and of itself require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

11

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB has created Topic 842. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, which for us would be the first quarter of 2019, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the impact of this ASU.

In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU clarifies the guidance for principal versus agent considerations. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for identifying performance obligations and licensing. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for a variety of revenue recognition related topics. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted commencing the first quarter of 2019. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" which amends "Statement of Cash Flows" (Topic 230). The ASU provides guidance regarding the presentation of certain types of transactions in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. We do not expect the ASU to have a material impact on our statement of cash flows.

The FASB has not issued any other ASUs during 2016 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures.

12

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

3. Investment in Real Estate

2016 Acquisitions

Westwood Portfolio Acquisition

On February 29, 2016 (Acquisition Date), a consolidated joint venture which we manage and in which we own an equity interest acquired four Class A multi-tenant office properties located in Westwood, California (Westwood Portfolio) for a contract price of $1.34 billion. As of the Acquisition Date, we had contributed sixty-percent of the equity to the joint venture, which was subsequently reduced to thirty-percent on May 31, 2016 (Sell Down Date) when we sold half of our ownership interest to a third party investor. The results of operations for the acquisition are included in our consolidated statements of operations after the Acquisition Date. The table below (in thousands) summarizes our preliminary purchase accounting and funding sources for the acquisition (the purchase accounting is subject to adjustment within twelve months of the acquisition date):

Sources and Uses of Funds	Actual at Closing(1)			Pro Forma Sell Down Adjustments (2)			Pro Forma
Building square footage	1,725						1,725
Uses of funds - Investment in real estate:
Land	$	95,130					$	95,127
Buildings and improvements	1,238,215						1,238,162
Tenant improvements and lease intangibles	50,499						50,497
Acquired above and below-market leases, net(3)	(51,331		)				(51,273		)
Net assets and liabilities acquired(4)	$	1,332,513					$	1,332,513
Source of funds:
Cash on hand(5)	$	153,745		$	—		$	153,745
Credit facility(6)	290,000			(240,000		)	50,000
Non-recourse term loan, net(7)	568,768			—			568,768
Noncontrolling interests	320,000			240,000			560,000
Total source of funds	$	1,332,513		$	—		$	1,332,513

________________________________________________    

(1) Reflects the purchase of the Westwood Portfolio on the Acquisition Date when we contributed sixty-percent of the equity to the consolidated joint venture.

(2) Reflects our sale of thirty-percent of the equity in the joint venture on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the joint venture to thirty-percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us for our costs of holding the investment. We recognized a gain on the sale of $1.1 million, which is included in Gains on sales of investments in real estate in our consolidated statement of operations. We used the proceeds from the sale to pay down the balance owed on our revolving credit facility.

(3) As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years.

(4) The difference between the contract and purchase price related to credits received for prorations and similar matters.

(5) Cash paid included $75.0 million paid through a deposit made before December 31, 2015 (which was included in Other assets in the Company's consolidated balance sheet as reported in our 2015 Form 10-K filing), $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan.

(6) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40%.

(7) Reflects 100% (not the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs of $11.2 million incurred to secure the loan. The loan has a seven-year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR plus 1.40%, which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. The deferred loan costs will be amortized over the seven-year loan term. Deferred loan costs are presented in the balance sheet as a direct deduction from the carrying amount of our secured notes payable and revolving credit facility. See Note 7 for information regarding our consolidated debt.

13

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio which are included in the Company’s consolidated statement of operations from the date of acquisition:

Total office revenues	$	56,045
Net income attributable to common stockholders(1)	$	1,444

______________________________________________________

(1) Excluding the impact of transaction costs, net income attributable to common stockholders would have been $3.5 million.

The table below (in thousands, except per share information) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our thirty-percent ownership interest and includes adjustments that give effect to events that are (i) directly attributable to the acquisition, (ii)  expected to have a continuing impact on the Company, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on the Company and does not purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or project the results of operations for any future period. The information does not reflect cost savings or operating synergies that may result from the acquisition or the costs to achieve any such potential cost savings or operating synergies.

	Nine Months Ended September 30,
	2016		2015
Pro forma revenues	$	561,235	$	544,518
Pro forma net income attributable to common stockholders(1)	$	64,623	$	46,203
Pro forma net income attributable to common stockholders per share – basic	$	0.433	$	0.315
Pro forma net income attributable to common stockholders per share – diluted	$	0.421	$	0.306

_____________________________________________________

(1) Transaction costs related to the acquisition have been excluded.

14

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Other 2016 Acquisitions

During the nine months ended September 30, 2016, a consolidated joint venture which we manage and in which we own an equity interest acquired two properties: (i) on July 21, 2016, the joint venture acquired a Class A multi-tenant office property located in Brentwood, California (12100 Wilshire) for a contract price of $225.0 million, and (ii) on September 27, 2016 the joint venture acquired a Class A multi-tenant office property located in Santa Monica, California (233 Wilshire) for a contract price of $139.5 million. As of July 21, 2016, we had contributed fifty-five percent of the equity to the joint venture, which was reduced to twenty-percent when we sold thirty-five percent to a third party investor for $51.6 million, which included $194 thousand to compensate us for our costs of holding the investment. We recognized a gain of $587 thousand on the sale, which is included in Gains on sales of investments in real estate in our consolidated statements of operations. In addition to purchasing a thirty-five percent interest from us, investors contributed $139.8 million to the joint venture. As of September 30, 2016, including the effect of the sale of our interest, investors hold an aggregate of eighty-percent of the capital interests in the joint venture. As part of the acquisitions, the joint venture borrowed a total of $146.0 million under a three year, interest only, non-recourse loan bearing interest at LIBOR + 1.55%. The loan is secured by the acquired properties. See Note 7. The results of operations for the acquisitions are included in our consolidated statements of operations after the respective acquisition dates. The table below (in thousands) summarizes our preliminary purchase accounting for the acquisitions (the purchase accounting is subject to adjustment within twelve months of the acquisition dates). The differences between the contracts and respective purchase prices relate to credits received for prorations and similar matters:

	233 Wilshire			12100 Wilshire
Building square footage	129			365
Investment in real estate:
Land	$	12,503		$	20,154
Buildings and improvements	124,258			199,601
Tenant improvements and lease intangibles	3,802			9,053
Acquired above and below-market leases, net	(2,712		)	(4,412		)
Net assets and liabilities acquired	$	137,851		$	224,396

2016 Disposition

During the third quarter of 2016, we sold a 168,000 square foot Class A office property located in Sherman Oaks, California with a carrying value of $42.8 million for a contract price of $56.7 million, and we incurred transaction costs of $1.2 million resulting in a net gain of $12.7 million. The gain is included in Gains on sales of investments in real estate in our consolidated statements of operations. The property was classified as real estate held for sale in our consolidated balance sheets before it was sold.

15

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

2015 Acquisitions

During the nine months ended September 30, 2015, we closed two acquisitions: (i) on March 5, 2015, we purchased a Class A multi-tenant office property (First Financial Plaza), located in Encino, California, for $92.4 million, and (ii) on February 12, 2015, we acquired the fee interest in the land (Harbor Court Land) under one of our office buildings for $27.5 million. We recognized $6.6 million of accretion of an above-market ground lease related to the purchase of the Harbor Court Land, which is included in Other income in the consolidated statement of operations. See Note 4. The results of operations for these acquisitions are included in our consolidated statements of operations after the respective date of their acquisitions. The table below (in thousands) summarizes our purchase price allocations for the acquisitions:

	Harbor Court Land		First Financial Plaza
Building square footage (if applicable)	N/A		227
Investment in real estate:
Land	$	12,060	$	12,092
Buildings and improvements	15,440		75,039
Tenant improvements and lease intangibles	—		6,065
Acquired above and below-market leases, net	—		(790		)
Net assets and liabilities acquired	$	27,500	$	92,406

16

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

4. Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles

The table below (in thousands) summarizes our above/below-market leases:

	September 30, 2016			December 31, 2015
Above-market tenant leases	$	4,705		$	4,661
Accumulated amortization - above-market tenant leases	(2,150		)	(2,670		)
Below-market ground leases	3,198			3,198
Accumulated amortization - below-market ground leases	(763		)	(705		)
Acquired lease intangible assets, net	$	4,990		$	4,484
Below-market tenant leases	$	151,925		$	103,327
Accumulated accretion - below-market tenant leases	(81,294		)	(78,280		)
Above-market ground leases	4,017			4,017
Accumulated accretion - above-market ground leases	(497		)	(459		)
Acquired lease intangible liabilities, net	$	74,151		$	28,605

Impact on the Consolidated Statements of Operations

The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net accretion of above/below-market tenant leases(1)	$	5,093		$	2,858		$	13,390		$	9,181
Amortization of a below-market ground lease(2)	(4		)	(4		)	(13		)	(13		)
Accretion of above-market ground lease(3)	13			13			38			38
Accretion of an above-market ground lease(4)	—			—			—			6,600
Total	$	5,102		$	2,867		$	13,415		$	15,806

_______________________________________________

(1) Recorded as a net increase to office and multifamily rental revenues.

(2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income.

(3) Ground lease from which we incur ground rent expense. Recorded as a decrease to Office expenses.

(4) Ground lease from which we incurred ground rent expense. Recorded as an increase to Other income. During the first quarter of 2015, we acquired the fee interest in the land (Harbor Court Land). See Note 3.

The table below (in thousands) presents the future net accretion of above- and below-market tenant and ground leases at September 30, 2016:

Twelve months ending September 30:	Net increase to revenues		Decrease to expenses		Total
2017	$	16,269	$	50	$	16,319
2018	13,752		50		13,802
2019	12,360		50		12,410
2020	9,669		50		9,719
2021	6,046		50		6,096
Thereafter	7,545		3,270		10,815
Total	$	65,641	$	3,520	$	69,161

17

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

5. Investments in Unconsolidated Real Estate Funds

Description of our Funds

We manage and own equity interests in two unconsolidated Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet.  At September 30, 2016, we held equity interests of 68.61% of Fund X and 24.25% of Partnership X. Our Funds pay us fees and reimburse us for certain expenses related to property management and other services we provide. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents (in thousands) cash distributions received from our Funds:

	Nine Months Ended September 30,
	2016		2015
Operating distributions received from our Funds	$	1,356	$	762
Capital distributions received from our Funds	21,973		5,711
Total distributions received	$	23,329	$	6,473

Notes receivable

In April 2013, we loaned $2.9 million to a related party investor in connection with a capital call made by Fund X, and in November 2015, we loaned $0.5 million to Partnership X to fund working capital. Both loans carried interest at LIBOR plus 2.5% per annum and were repaid in full during the first quarter of 2016. The outstanding balance of the Fund X and Partnership X loans at December 31, 2015 of $0.3 million and $0.5 million, respectively, were included in our investment in our unconsolidated funds in our consolidated balance sheet. The interest income recognized on these notes receivable was included in other income in our consolidated statements of operations.

Summarized Financial Information for our Funds

The accounting policies of the Funds are consistent with ours. The tables below present (in thousands) selected financial information for the Funds on a combined basis.  The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value:

	September 30, 2016		December 31, 2015
Total assets	$	691,473	$	691,543
Total liabilities	$	449,842	$	389,372
Total equity	$	241,631	$	302,171

	Nine Months Ended September 30,
	2016		2015
Total revenues	$	54,104	$	52,500
Operating income	$	14,284	$	10,072
Net income	$	5,847	$	1,431

18

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

6. Other Assets

Other assets consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Restricted cash	$	187	$	194
Prepaid expenses	11,343		6,720
Other indefinite-lived intangible	1,988		1,988
Deposits in escrow	—		75,000
Furniture, fixtures and equipment, net	1,199		1,448
Other	2,851		2,370
Total other assets	$	17,568	$	87,720

19

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

7. Secured Notes Payable and Revolving Credit Facility, net

The following table summarizes (in thousands) our secured notes payable and revolving credit facility:

Description	Maturity Date(1)	Principal Balance as of September 30, 2016			Principal Balance as of December 31, 2015			Variable Interest Rate		Fixed Interest Rate(2)	Swap Maturity Date
Wholly Owned Subsidiaries
Term Loan(3)	12/24/2016	$	—		$	20,000		LIBOR + 1.45%		N/A	--
Term Loan	2/28/2018	1,000			—			N/A		3.00%	--
Term Loan(3)	4/2/2018	—			256,140			LIBOR + 2.00%		N/A	--
Term Loan	8/1/2018	530,000			530,000			LIBOR + 1.70%		N/A	--
Term Loan(4)	8/5/2018	351,472			355,000			N/A		4.14%	--
Term Loan(4)	2/1/2019	150,627			152,733			N/A		4.00%	--
Term Loan(5)	6/5/2019	285,000			285,000			N/A		3.85%	--
Fannie Mae Loan	10/1/2019	145,000			145,000			LIBOR + 1.25%		N/A	--
Term Loan(6)	3/1/2020	347,188			349,070			N/A		4.46%	--
Fannie Mae Loans	11/2/2020	388,080			388,080			LIBOR + 1.65%		3.65%	11/1/2017
Term Loan	4/15/2022	340,000			340,000			LIBOR + 1.40%	(8)	2.77%	4/1/2020
Term Loan	7/27/2022	180,000			180,000			LIBOR + 1.45%	(8)	3.06%	7/1/2020
Term Loan	11/2/2022	400,000			400,000			LIBOR + 1.35%	(8)	2.64%	11/1/2020
Term Loan	6/23/2023	360,000			—			LIBOR + 1.55%	(8)	2.57%	7/1/2021
Fannie Mae Loan	4/1/2025	102,400			102,400			LIBOR + 1.25%	(8)	2.84%	3/1/2020
Fannie Mae Loan	12/1/2025	115,000			115,000			LIBOR + 1.25%	(8)	2.76%	12/1/2020
Revolving credit line(7)	8/21/2020	—			—			LIBOR + 1.40%		N/A	--
Total Wholly Owned Debt		$	3,695,767		$	3,618,423
Consolidated Joint Ventures
Term Loan	3/1/2017	$	15,740		$	15,740		LIBOR + 1.60%		N/A	--
Term Loan	7/21/2019	146,000			—			LIBOR + 1.55%		N/A	--
Term Loan	2/28/2023	580,000			—			LIBOR + 1.40%	(8)	2.37%	3/1/2021
Total Debt(9) (10)		$	4,437,507		$	3,634,163
Deferred loan costs, net(11)		(35,656		)	(22,887		)
Total Debt, net		$	4,401,851		$	3,611,276

___________________________________________________

At September 30, 2016, the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.5 years. For the $3.60 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, the weighted average (i) remaining life was 5.0 years, (ii) remaining period during which the interest rate was fixed was 3.1 years, (iii) annual interest rate was 3.24% and (iv) effective interest rate was 3.39% (including the non-cash amortization of deferred loan costs). Except as otherwise noted below, each loan (including our revolving credit facility) is secured by a one or more separate collateral pools consisting of one or more properties, requiring monthly payments of interest only, with the outstanding principal due upon maturity. Maturity dates include the effect of extension options.  The following table summarizes (in thousands) our fixed and floating rate debt:

Description	Principal Balance as of September 30, 2016		Principal Balance as of December 31, 2015
Aggregate swap fixed rate loans	$	2,465,480	$	2,492,360
Aggregate fixed rate loans	1,135,287		1,141,803
Aggregate floating rate loans	836,740		—
Total Debt	$	4,437,507	$	3,634,163

20

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

(1) Maturity dates include the effect of extension options.

(2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs. See Note 9 for the details of our interest rate contracts.

(3) At September 30, 2016, these loans have been paid off.

(4) Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(5) Interest only until February 2017, with principal amortization thereafter based upon a 30-year amortization schedule.

(6) Interest rate is fixed until March 1, 2018. Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(7) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20%.

(8) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

(9) See Note 12 for our fair value disclosures.

(10) At September 30, 2016, the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands):

Twelve months ending September 30:
2017	$	34,693
2018	1,224,890
2019	567,444
2020	325,000
2021	503,080
Thereafter	1,782,400
Total future principal payments	$	4,437,507

(11) Deferred loan costs are net of accumulated amortization of $17.6 million and $15.2 million at September 30, 2016 and December 31, 2015, respectively. The table below (in thousands) sets forth loan costs that were expensed and deferred loan costs which are amortized, both of which are included in Interest Expense in our consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Loan costs expensed	$	—	$	396	$	818	$	396
Deferred loan cost amortization	2,227		1,162		5,470		5,136
Total	$	2,227	$	1,558	$	6,288	$	5,532

8. Interest Payable, Accounts Payable and Deferred Revenue

Interest payable, accounts payable and deferred revenue consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Interest payable	$	10,195	$	10,028
Accounts payable and accrued liabilities	59,480		23,716
Deferred revenue	25,117		23,673
Total interest payable, accounts payable and deferred revenue	$	94,792	$	57,417

21

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

9. Derivative Contracts

Hedges of Interest Rate Risk

We make use of interest rate swap and interest rate cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. In limited instances, we make use of interest rate caps to limit our exposure to interest rate increases on our floating-rate debt. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 7 for the details of our floating-rate debt that we have hedged.

Accounting for Hedges of Interest Rate Risk

When we enter into derivative agreements, we generally elect to have them designated as cash flow hedges for accounting purposes. For hedging instruments designated as cash flow hedges, changes in fair value of the hedging instrument are recorded in accumulated other comprehensive income (loss) (AOCI), which is a component of equity outside of earnings, and any hedge ineffectiveness is recorded as interest expense. Amounts recorded in AOCI related to our designated hedges are reclassified to interest expense as interest payments are made on the hedged floating-rate debt. Amounts reported in AOCI related to our unconsolidated Funds' hedges are reclassified to income, including depreciation, from unconsolidated real estate funds, as interest payments are made by our Funds on their hedged floating-rate debt. For hedging instruments which are not designated as cash flow hedges, changes in fair value of the hedging instrument are recorded as interest expense. We present our derivatives, including the derivatives of our consolidated joint ventures, on our consolidated balance sheet at fair value on a gross basis. Our share of the AOCI related to our unconsolidated Funds' derivatives is included in our investment in unconsolidated real estate funds on our consolidated balance sheet.

Summary of our Derivatives

As of September 30, 2016, all of our interest rate swaps, including our unconsolidated Funds' interest rate swaps, were designated as cash flow hedges:

	Number of Interest Rate Swaps	Notional (in thousands)(1)
Derivatives	18	$	2,465,480
Unconsolidated Funds' derivatives(2)	2	$	435,000

___________________________________________________

(1) See Note 12 for our derivative fair value disclosures.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

22

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Credit-risk-related Contingent Features

We have agreements with each of our interest rate swap counterparties that contain a provision under which we could also be declared in default on our derivative obligations if we default on the underlying indebtedness that we are hedging. As of September 30, 2016, there have been no events of default with respect to our interest rate swaps or our unconsolidated Funds' interest rate swaps. The fair value of our interest rate swaps in a liability position were as follows (in thousands):

Fair value of derivatives in a liability position(1)	September 30, 2016		December 31, 2015
Derivatives	$	30,567	$	19,047
Unconsolidated Funds' derivatives(2)	$	—	$	—

__________________________________________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Counterparty Credit Risk

We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts. We seek to minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. The fair value of our interest rate swaps in an asset position were as follows (in thousands):

Fair value of derivatives in an asset position(1)	September 30, 2016		December 31, 2015
Derivatives	$	—	$	4,220
Unconsolidated Funds' derivatives(2)	$	200	$	737

___________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

23

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Impact of Hedges on AOCI and Consolidated Statements of Operations

The table below presents (in thousands) the effect of our derivative instruments, including our unconsolidated Funds' derivative instruments on our AOCI and statements of operations for the nine months ended September 30:

	2016			2015
Derivatives Designated as Cash Flow Hedges:
Loss recorded in AOCI (effective portion) - derivatives(1)(5)	$	(37,927	)	$	(21,975	)
Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives(2)(5)	$	(814	)	$	(2,483	)
Loss reclassified from AOCI (effective portion) - derivatives(3)(5)	$	(21,361	)	$	(27,897	)
Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives(4)(5)	$	(311	)	$	(709	)
Gain (loss) recorded as interest expense (ineffective portion)(6)	$	—		$	—
Derivatives Not Designated as Cash Flow Hedges:
Gain (loss) recorded as interest expense(7)	$	—		$	—

___________________________________________________

(1) Represents the change in fair value of our interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations.

(2) Represents our share of the change in fair value of our unconsolidated Funds' interest rate swaps designated as a cash flow hedges, which does not impact the statement of operations.

(3) Reclassified from AOCI as an increase to Interest expense.

(4) Reclassified from AOCI as a decrease to Income, including depreciation, from unconsolidated real estate funds (our share).

(5) See the reconciliation of our AOCI in Note 10.

(6) We did not record any ineffectiveness related to our derivatives designated as cash flow hedges.

(7) We do not have any derivatives that are not designated as cash flow hedges.

Future Reclassifications from AOCI

At September 30, 2016, our estimate of the AOCI related to our derivatives and our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months, is presented in the table below (in thousands):

Derivatives(1)	$	16,448
Unconsolidated Funds' derivatives(2)	$	29

________________________________________

(1) Reclassified as an increase to interest expense.

(2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds (our share).

24

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

10.  Equity

Equity Transactions

During the nine months ended September 30, 2016, we (i) acquired 1.3 million OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, (ii) acquired 25 thousand OP Units for $826 thousand in cash, at an average price of $33.05 per OP Unit, (iii) issued 1.5 million shares of our common stock for the exercise of 7.6 million stock options on a net settlement basis (net of the exercise price and related taxes), (iv) sold 1.4 million shares of our common stock in open market transactions under our ATM program for net proceeds of $49.4 million, after commissions and other expenses.

In addition, during the nine months ended September 30, 2016, we created two joint ventures to acquire various properties: (i) in the first joint venture, which acquired the Westwood Portfolio, investors acquired an aggregate of seventy-percent of the capital interests, as a result of contributing $320.0 million directly to the joint venture for a forty-percent interest and acquiring a thirty-percent interest from us for $241.1 million, (resulting in a gain of $1.1 million), and (ii) in the second joint venture, which acquired properties during the third quarter, investors acquired an aggregate of eighty-percent of the capital interests, as a result of contributing $139.8 million directly to the joint venture and acquiring a thirty-five-percent interest from us for $51.6 million (resulting in a gain of $587 thousand). See Note 3.

During the nine months ended September 30, 2015, we (i) acquired 1.4 million OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, and (ii) issued 136 thousand shares of our common stock for the exercise of options for net proceeds of $1.8 million at an average price of $13.44 per share. In addition, we issued 34 thousand OP Units valued at $1.0 million in connection with the acquisition of land under one of our office buildings. See Note 3.

Condensed Consolidated Statements of Equity

The tables below present (in thousands) our condensed consolidated statements of equity:

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2016	$	1,926,211		$	355,337		$	2,281,548
Net income	65,696			7,928			73,624
Cash flow hedge fair value adjustments	(14,376		)	(2,693		)	(17,069		)
Contributions to consolidated joint venture	—			459,750			459,750
Sales of equity interests in consolidated joint ventures	—			291,029			291,029
Dividends and distributions	(98,501		)	(26,185		)	(124,686		)
Exchange of OP units for common stock	17,733			(17,733		)	—
Repurchase of OP units	(498		)	(328		)	(826		)
Exercise of stock options(1)	(53,467		)	—			(53,467		)
Stock-based compensation	—			7,759			7,759
Sale of common stock, net of offering costs	49,379			—			49,379
Balance as of September 30, 2016	$	1,892,177		$	1,074,864		$	2,967,041

__________________________________________________

(1) We issued shares of our common stock for the exercise of stock options on a net settlement basis (net of the exercise price and related taxes).

25

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2015	$	1,943,458		$	370,266		$	2,313,724
Net income	44,217			7,932			52,149
Cash flow hedge fair value adjustments	3,239			909			4,148
Dividends and distributions	(92,087		)	(17,549		)	(109,636		)
Exchange of OP units for common stock	18,101			(18,101		)	—
Issuance of OP units	—			1,000			1,000
Exercise of stock options	1,823			—			1,823
Stock-based compensation	—			6,603			6,603
Balance as of September 30, 2015	$	1,918,751		$	351,060		$	2,269,811

Noncontrolling Interests

Our noncontrolling interests consist of interests in our Operating Partnership and consolidated joint ventures which are not owned by us. Noncontrolling interests in our Operating Partnership consist of OP Units and fully-vested LTIP Units, and represented approximately 14% of our Operating Partnership's total interests as of September 30, 2016 when we and our Operating Partnership had 151.1 million shares of common stock and 25.3 million OP Units and fully-vested LTIP Units outstanding. A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership.  Investors who own OP Units have the right to cause our Operating Partnership to redeem their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of redemption, or, at our election, exchange their OP Units for shares of our common stock on aone-for-one basis. LTIP Units have been granted to our employees and non-employee directors as part of their compensation. These awards generally vest over a service period and once vested can generally be converted to OP Units.

Changes in our Ownership Interest in our Operating Partnership

The table below presents (in thousands) the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:

	Nine Months Ended September 30,
	2016			2015
Net income attributable to common stockholders	$	65,696		$	44,217
Transfers (to) from noncontrolling interests:
Exchange of OP units with noncontrolling interests	17,733			18,101
Repurchase of OP units from noncontrolling interests	(498		)	—
Net transfers from noncontrolling interests	$	17,235		$	18,101
Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	82,931		$	62,318

26

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

AOCI Reconciliation⁽¹⁾ 

The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the nine months ended September 30:

	2016			2015
Beginning balance	$	(9,285	)	$	(30,089	)
Other comprehensive loss before reclassifications - derivatives	(37,927		)	(21,975		)
Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives	(814		)	(2,483		)
Reclassifications from AOCI - derivatives(2)	21,361			27,897
Reclassifications from AOCI - unconsolidated Funds' derivatives(3)	311			709
Net current period OCI	(17,069		)	4,148
Less OCI attributable to noncontrolling interests	2,693			(909		)
OCI attributable to common stockholders	(14,376		)	3,239
Ending balance	$	(23,661	)	$	(26,850	)

___________________________________________________

(1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures.

(2) Reclassification as an increase to interest expense.

(3) Reclassification as a decrease to income, including depreciation, from unconsolidated real estate funds.

Equity Compensation

On June 2, 2016, the Douglas Emmett, Inc. 2016 Omnibus Stock Incentive Plan became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett, Inc. 2006 Omnibus Stock Incentive Plan. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Our officers, employees, directors and consultants are eligible to participate in both plans, with grants awarded during June 2016 and onwards awarded under the 2016 Plan, and grants awarded prior to that date awarded under the 2006 Plan and remain outstanding according to their terms. Both plans are administered by the compensation committee of our board of directors.  Total net stock-based compensation expense was $2.3 million and $2.0 million for the three months ended September 30, 2016 and 2015, respectively, and $7.1 million and $6.0 million for the nine months ended September 30, 2016 and 2015, respectively. These amounts are net of capitalized stock-based compensation of $235 thousand and $208 thousand for the three months ended September 30, 2016 and 2015, respectively, and $683 thousand and $610 thousand for the nine months ended September 30, 2016 and 2015, respectively. The total intrinsic value of options exercised was $2.1 million for the three months ended September 30, 2016, and $104.0 million and $2.2 million for the nine months ended September 30, 2016 and 2015, respectively.

27

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

11. EPS

We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Numerator (in thousands):
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217
Allocation to participating securities: Unvested LTIP units	(180		)	(59		)	(365		)	(224		)
Numerator for the calculation of basic and diluted EPS	$	31,668		$	12,011		$	65,331		$	43,993
Denominator (in thousands):
Weighted average shares of common stock outstanding - basic	150,753			146,331			148,578			145,856
Effect of dilutive securities: Stock options(1)	2,666			4,409			4,241			4,429
Weighted average shares of common stock and common stock equivalents outstanding - diluted	153,419			150,740			152,819			150,285
Basic EPS:
Net income attributable to common stockholders per share	$	0.210		$	0.082		$	0.440		$	0.302
Diluted EPS:
Net income attributable to common stockholders per share	$	0.206		$	0.080		$	0.428		$	0.293

____________________________________________________

(1) The following securities were excluded from the computation of the weighted average diluted shares because the effect of including them would be anti-dilutive to the calculation of diluted EPS:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
OP Units	24,788	26,307	25,148	26,520
Vested LTIP Units	675	8	766	235
Unvested LTIP units	783	647	679	576

28

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

12. Fair Value of Financial Instruments

Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods.  Considerable judgment is necessary to interpret market data and determine an estimated fair value.  The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs.  The hierarchy is as follows:

Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.  

Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.  

Level 3 - inputs are unobservable assumptions generated by the reporting entity

As of September 30, 2016, we did not have any fair value measurements of financial instruments using Level 3 inputs.

Financial instruments disclosed at fair value

Short term financial instruments:The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit line, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments.

Secured notes payable:See Note 7 for the details of our secured notes payable. We estimate the fair value of our secured notes payable, which includes the secured notes payable of our consolidated joint ventures, by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and excludes any maturity extension options. The table below presents (in thousands) the estimated fair value of our secured notes payable:

Secured Notes Payable:	September 30, 2016		December 31, 2015
Fair value	$	4,482,073	$	3,691,075
Carrying value	$	4,437,507	$	3,634,163

Financial instruments measured at fair value

Derivative instruments:See Note 9 for the details of our derivatives. We present our derivatives on the balance sheet at fair value, on a gross basis, excluding accrued interest.  We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative.  The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own nonperformance risk. Our derivatives are not subject to master netting arrangements.  The table below presents (in thousands) the estimated fair value of our derivatives:

	September 30, 2016		December 31, 2015
Derivative Assets:
Fair value - derivatives(1)	$	—	$	4,830
Fair value - unconsolidated Funds' derivatives(2)	$	221	$	837
Derivative Liabilities:
Fair value - derivatives(1)	$	28,046	$	16,310
Fair value - unconsolidated Funds' derivatives(2)	$	—	$	—

____________________________________________________

(1) Our derivatives are included in interest rate contracts in our consolidated balance sheet. The fair value excludes accrued interest (which is included in interest payable in the consolidated balance sheet).

(2) Represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds.

29

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

13. Segment Reporting

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes.  We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate.  The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental.  The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources.  Therefore, depreciation and amortization expense is not allocated among segments.  General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, it is not indicative of cash available to fund cash needs, and should not be considered as an alternative to cash flows as a measure of liquidity.  Not all companies may calculate segment profit in the same manner.  We consider segment profit to be an appropriate supplemental measure to net income because it can assist both investors and management in understanding the core operations of our properties. The table below presents (in thousands) the operating activity of our reportable segments:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Office Segment
Total office revenues	$	167,608		$	136,225		$	475,083		$	404,472
Office expenses	(56,926		)	(49,195		)	(158,190		)	(139,936		)
Office Segment profit	110,682			87,030			316,893			264,536
Multifamily Segment
Total multifamily revenues	24,513			23,852			72,825			70,871
Multifamily expenses	(5,950		)	(6,191		)	(17,322		)	(17,941		)
Multifamily Segment profit	18,563			17,661			55,503			52,930
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466

The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466
General and administrative	(8,099		)	(6,867		)	(25,573		)	(21,701		)
Depreciation and amortization	(63,827		)	(52,229		)	(181,947		)	(153,309		)
Other income	2,295			2,129			6,527			13,103
Other expenses	(1,728		)	(1,605		)	(4,963		)	(4,796		)
Income, including depreciation, from unconsolidated real estate funds	2,334			898			5,564			3,548
Interest expense	(36,479		)	(32,705		)	(109,842		)	(101,521		)
Acquisition-related expenses	(1,188		)	(153		)	(2,865		)	(641		)
Income before gains	22,553			14,159			59,297			52,149
Gains on sales of investments in real estate	13,245			—			14,327			—
Net income	35,798			14,159			73,624			52,149
Less: Net income attributable to noncontrolling interests	(3,950		)	(2,089		)	(7,928		)	(7,932		)
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217

30

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

14. Future Minimum Lease Rental Receipts

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses, and we own fee interests in two parcels of land subject to ground leases from which we earn ground rent income. The table below presents (in thousands) the future minimum base rentals on our non-cancelable office tenant and ground operating leases at September 30, 2016:

Twelve months ending September 30:
2017	$	484,558
2018	426,338
2019	360,404
2020	301,221
2021	230,358
Thereafter	616,925
Total future minimum base rentals(1)	$	2,419,804

_____________________________________________________

(1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) straight line rent, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents.  The amounts assume that early termination options held by tenants are not exercised.

15. Future Minimum Lease Rental Payments

We incurred ground lease payments of $183 thousand for the three months ended September 30, 2016 and 2015, and $550 thousand for the nine months ended September 30, 2016 and 2015. The table below presents (in thousands) the future minimum ground lease payments as of September 30, 2016:

Twelve months ending September 30:
2017	$	733
2018	733
2019	733
2020	733
2021	733
Thereafter	47,827
Total future minimum lease payments(1)	$	51,492

___________________________________________________

(1) Lease term ends on December 31, 2086. Ground rent is fixed at $733 thousand per year until February 28, 2019, and will then be reset to the greater of the existing ground rent or market. The table above assumes that the rental payments will continue to be $733 thousand per year after February 28, 2019.

31

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

16. Commitments, Contingencies and Guarantees

Legal Proceedings

From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business.  Excluding ordinary, routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations.

Concentration of Risk

We are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon the economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits from our tenants.  For the nine months ended September 30, 2016 and 2015, no tenant accounted for more than 10% of our total revenues.  

All of our properties (including the properties owned by our unconsolidated Funds) are located in Los Angeles County, California and Honolulu, Hawaii, and we are dependent on the Southern California and Honolulu economies. Therefore, we are susceptible to adverse local conditions and regulations, as well as natural disasters in those areas.

We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts that we use to manage the risk associated with our floating rate debt. See Note 9 for the details of our interest rate contracts. We seek to

minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings.

We maintain our cash and cash equivalents at high quality financial institutions with investment grade ratings.  Interest bearing accounts at each U.S. banking institution are insured by the FDIC up to $250 thousand.

Asset Retirement Obligations

Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control.  A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated.  Environmental site assessments and investigations have identified twenty-five buildings in our consolidated portfolio and four buildings owned by our unconsolidated Funds which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties undergo major renovations or are demolished.  As of September 30, 2016, the obligations to remove the asbestos from these properties have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation.

Development Contracts

During the first quarter of 2016, we commenced building an additional 475 apartments (net of existing apartments to be removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. The $120 million estimated cost of the new apartments does not include the cost of the land which we already owned before beginning the project. We also plan to invest additional capital to upgrade the existing apartments, improve the parking and landscaping, build a new leasing and management office, and construct a new recreation and fitness facility with a new pool. As of September 30, 2016, we had a remaining commitment for contracts related to the development of $109.5 million.

Other Contracts

As of September 30, 2016, we had a remaining commitment for capital expenditure projects and repositionings of approximately $3.0 million.

32

Douglas Emmett, Inc.

Notes to Consolidated Financial Statements (unaudited) (continued)

Guarantees

We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for loans related to both of our unconsolidated Funds. We have also guaranteed the related swaps. The entities have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2016, all obligations under these loans and swap agreements have been performed in accordance with the terms of those agreements. The table below summarizes the debt of our Funds as of September 30, 2016, the amounts represent 100% (not our pro-rata share) of amounts related to our Funds:

Fund(1)	Principal Balance(1) (in millions)		Loan Maturity Date	Variable Interest Rate	Swap Maturity Date	Swap Fixed Interest Rate
Fund X(2)	$	325.0	5/1/2018	LIBOR + 1.75%	5/1/2017	2.35%
Partnership X(3)	110.0		3/1/2023	LIBOR + 1.40%	3/1/2021	2.30%
	$	435.0

___________________________________________________

(1) See Note 5 for more information regarding our unconsolidated Funds.

(2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.2 million.

(3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.4 million.

33

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Summary

Business Description and Portfolio Summary

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and in Honolulu, Hawaii. We focus on owning, acquiring, developing and managing a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. As of September 30, 2016, our portfolio consisted of the following:

	Consolidated(1)	Total Portfolio(2)
Office
Class A Properties(3)	59	67
Rentable square feet (in thousands)	15,807	17,631
Leased rate	91.9%	91.9%
Occupied rate	90.0%	90.2%
Multifamily
Properties	10	10
Units	3,336	3,336
Leased rate	99.6%	99.6%
Occupied rate	97.4%	97.4%

__________________________________________________

(1) Our consolidated portfolio includes all of the properties included in our consolidated results. We own 100% of these properties except for seven office properties totaling approximately 2.3 million square feet, which we own through three consolidated joint ventures. Our consolidated portfolio also included two parcels of land which are ground leased to the owners of a Class A office building and a hotel and from which we earn ground rent income.

(2) Our total portfolio includes our consolidated portfolio plus eight properties totaling approximately 1.8 million square feet owned by our unconsolidated Funds, in which we own a weighted average of approximately 60% based on square footage. See Note 5 to our consolidated financial statements in Item 1 of this Report for more information regarding our unconsolidated Funds.

(3) Office portfolio includes ancillary retail space.

Annualized rent

Annualized rent from our consolidated portfolio was derived as follows as of September 30, 2016:

______

34

Acquisitions and Dispositions, Financings, Developments and Repositionings

Acquisitions and Dispositions 

• During the first quarter of 2016, a consolidated joint venture which we manage and in which we own a thirty-percent equity interest acquired four Class A multi-tenant office properties located in Westwood, California (Westwood Portfolio) for a contract price of $1.34 billion.

• During the third quarter of 2016, a consolidated joint venture which we manage and in which we own a twenty-percent equity interest acquired two Class A multi-tenant office properties located in Brentwood, California (12100 Wilshire) and Santa Monica, California (233 Wilshire) for a contract price of $225.0 million and $139.5 million, respectively.

• During the third quarter of 2016, we sold a 168,000 square foot Class A office property located in Sherman Oaks, California with a carrying value of $42.8 million for a contract price of $56.7 million, and we incurred transaction costs of $1.2 million resulting in a net gain of $12.7 million.

See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our acquisitions and dispositions.

Financings  

• As part of the acquisition of the Westwood Portfolio during the first quarter of 2016, one of our consolidated joint ventures closed a seven year, non-recourse $580.0 million interest-only term loan. The loan bears interest at LIBOR + 1.40%, and has been effectively fixed at 2.37% per annum until March 2021 through an interest rate swap. The loan is secured by the Westwood Portfolio.

• During the first quarter of 2016, one of our unconsolidated Funds closed a seven year, non-recourse $110.0 million interest-only term loan. The loan bears interest at LIBOR + 1.40%, and has been effectively fixed at 2.30% per annum until March 2021 though an interest rate swap. The loan is secured by two office properties owned by that Fund.

• During the second quarter of 2016, we closed a seven year, non-recourse, $360.0 million interest-only loan, which bears interest at LIBOR + 1.55%, and has been effectively fixed at 2.57% for five years. We used the proceeds to pay off a $256.1 million loan that was scheduled to mature in April 2018. The loan is secured by five office properties.

• During the second quarter of 2016, we sold a thirty-percent ownership interest in the consolidated joint venture that acquired the Westwood Portfolio to a third party investor for $241.1 million, which reduced our ownership interest in the joint venture from sixty-percent to thirty-percent.

• As part of the acquisition of office properties in Brentwood and Santa Monica, California during the third quarter of 2016, one of our consolidated joint ventures borrowed a total of $146.0 million under a three year, interest only, non-recourse loan bearing interest at LIBOR + 1.55%. The loan is secured by those properties

• During the third quarter of 2016, we sold a thirty-five percent ownership interest in the consolidated joint venture that acquired the office properties in Brentwood and Santa Monica, California during the third quarter to a third party investor for $51.6 million, which reduced our ownership interest in the joint venture from fifty-five percent to twenty percent.

• During the third quarter of 2016, we paid off a $20.0 million loan scheduled to mature in December 2016.

• During the third quarter of 2016, we sold 1.4 million shares of our common stock in open market transactions under our ATM program for net proceeds of approximately $49.4 million after commissions and other expenses.

See Notes 7 and 10 to our consolidated financial statements in Item 1 of this Report for more detail regarding our debt and equity, respectively.

Developments

We are developing two multifamily projects, one in our Brentwood submarket in Los Angeles, California, and one in Honolulu, Hawaii. Each development is on land which we already own:

• During the first quarter of 2016, we commenced building an additional 475 apartments (net of existing apartments to be removed) at our Moanalua Hillside Apartments in Honolulu. The $120 million estimated cost of the new apartments does not include the cost of the land which we already owned before beginning the project. We also plan to invest additional capital to upgrade the existing apartments, improve the parking and landscaping, build a new leasing and management office, and construct a new recreation and fitness facility with a new pool.

35

• In Los Angeles, we are seeking to build a high-rise apartment building with 376 apartments. Because development in our markets, particularly West Los Angeles, remains a long and uncertain process, we do not expect to break ground in Los Angeles before late 2017, even if the entitlement process is successful. We expect the cost of the development to be approximately $120 million to $140 million, which does not include the cost of the land or the existing underground parking garage, both of which we owned before beginning the project.

Repositionings

    We often strategically purchase properties with large vacancies or expected near-term lease roll-over and use our knowledge of the property and submarket to reposition the property for the optimal use and tenant mix. The work we undertake to reposition a building typically takes months or even years, and could involve a range of improvements from a complete structural renovation to a targeted remodeling of selected spaces. We generally select a property for repositioning at the time we purchase it, although repositioning efforts can also occur at properties that we already own. During the repositioning, the affected property may display depressed rental revenue and occupancy levels which impacts our results and, therefore, comparisons of our performance from period to period.

In addition to our Moanalua Hillside Apartments in Honolulu, described above under "Developments", as of September 30, 2016, we are repositioning two properties: (i) a 661,000 square foot office property in Woodland Hills, California, which included a 35,000 square foot gym, and (ii) a 79,000 square foot office property in Honolulu, Hawaii, owned by a consolidated joint venture in which we own a two-thirds interest.

Historical Results of Operations

Portfolio Overview

Our results of operations for the nine months ended September 30, 2016 consisted of the rental operations of fifty-three consolidated office properties and ten consolidated multifamily properties, as well as (after the respective date of acquisition): four additional office properties that one of our consolidated joint ventures acquired on February 29, 2016, two additional office properties that another of our consolidated joint ventures acquired on July 21, 2016 and September 27, 2016, and the rental operations of one property (before the date of sale) that we sold on September 16, 2016.

Our results of operations for the nine months ended September 30, 2015 consisted of the rental operations of fifty-three consolidated office properties and ten consolidated multifamily properties, as well as (after the respective date of acquisition) one additional office property that we acquired on March 5, 2015.

Our share of the earnings from our unconsolidated Funds, which owned an additional eight office properties during the nine months ended September 2016 and 2015, is included in income, including depreciation, from unconsolidated real estate funds in our consolidated statements of operations.

See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our acquisitions and dispositions, and see Note 5 for more detail regarding our unconsolidated Funds.

36

Rental Rate Trends - Total Portfolio

Office Rental Rates

The table below presents the average effective annual rental rate per leased square foot and the annualized lease transaction costs per leased square foot for leases executed in our total office portfolio during each period:

	Nine months ended	Twelve Months Ended December 31,
Historical straight-line rents:(1)	September 30, 2016	2015	2014	2013	2012
Average rental rate(2)	$42.93	$42.65	$35.93	$34.72	$32.86
Annualized lease transaction costs(3)	$5.76	$4.77	$4.66	$4.16	$4.06

___________________________________________________

(1) Because straight-line rent takes into account the full economic value of each lease, including accommodations and rent escalations, we believe that it may provide a better comparison than ending cash rents, which include the impact of the annual escalations over the entire term of the lease. However, care should be taken in any comparison, as the averages are often significantly affected from period to period by factors such as the buildings, submarkets, and types of space and terms involved in the leases executed during the respective reporting period.

(2) Reflects the weighted average straight-line annualized base rent (i.e., excludes tenant reimbursements, parking and other revenue) per leased square foot.  For our triple net leases, annualized rent is calculated by adding estimated expense reimbursements to base rent.

(3) Reflects the weighted average leasing commissions and tenant improvement allowances divided by the weighted average number of years for the leases.

Office Rent Roll Up

During the nine months ended September 30, 2016,

• Straight-line rent roll up. The average straight-line rent of $42.93 per square foot under new and renewal leases that we signed during the nine months ended September 30, 2016 was 28.0% greater than the average straight-line rent of $33.53 per square foot on the expiring leases for the same space.  The rent roll up reflects continuing increases in average starting rental rates and more leases containing annual rent escalations in excess of 3% per annum.

• Cash rent roll up. The average starting cash rental rate of $40.93 per square foot under new and renewal leases that we signed during the nine months ended September 30, 2016 was 26.1% greater than the average starting cash rental rate of $32.46 per square foot on the expiring leases for the same space, and 11.8% greater than the average ending cash rental rate of $36.61 per square foot on those expiring leases.

Fluctuations in submarkets, buildings and term of the expiring leases make predicting the changes in rent in any specific reporting period difficult.

37

Office Lease Expirations

The table below presents our expected expiring cash rents in our total office portfolio over the next four quarters:

	Three Months Ending,
Expiring cash rents:	December 31, 2016			March 31, 2017			June 30, 2017			September 30, 2017
Expiring square feet (1)(3)	400,844			499,846			510,191			626,157
Percentage of the portfolio	2.3		%	2.8		%	2.9		%	3.6		%
Expiring rent per square foot (2)(3)	$	36.10		$	36.48		$	38.45		$	35.08

____________________________________________________

(1) Reflects existing leases that are scheduled to expire, excluding leases where (i) the existing tenant has renewed the lease on or before September 30, 2016, (ii) a new tenant has executed a lease on or before September 30, 2016 that will commence after September 30, 2016, (iii) early termination options that are exercised after September 30, 2016, (iv) defaults occurring after September 30, 2016, and (v) short term leases, such as month to month leases and other short term leases. Short term leases are excluded because (a) they are not included in our changes in rental rate data, (b) have rental rates that may not be reflective of market conditions, and (c) can distort the data trends, particularly in the first quarter of the fiscal year.

(2) Reflects annualized base rent before abatements (excludes tenant reimbursements, parking and other revenue) at expiration.  Annualized base rent for triple net leases is calculated by adding expense reimbursements to base rent.

(3) Variations in these numbers from quarter to quarter primarily reflects the mix of buildings/submarkets involved as well as the varying terms and square footage of the individual leases involved.

Multifamily Rental Rates

The table below presents the average annual rental rate per leased unit for new tenants.

	Nine months ended		Twelve Months Ended December 31,
Average annual rental rate - new tenants:	September 30, 2016		2015		2014		2013		2012
Rental rate(1)	$	28,174	$	27,936	$	28,870	$	27,392	$	26,308

_____________________________________________________

(1) 2015 and 2016 include the impact of the acquisition of a property in Honolulu at the end of the 2014, so the numbers are not directly comparable with prior years.

Multifamily Rent Roll Up

During the nine months ended September 30, 2016, average rent on leases to new tenants at our residential properties were 2.5%higher for the same unit at the time it became vacant.

38

Occupancy Rates - Total Portfolio

The tables below present the occupancy rates for our total office portfolio and multifamily portfolio:

			December 31,
Occupancy Rates(1) as of:	September 30, 2016		2015		2014		2013		2012
Office Portfolio	90.2	%	91.2	%	90.5	%	90.4	%	89.6	%
Multifamily Portfolio	97.4	%	98.0	%	98.2	%	98.7	%	98.7	%

	Nine months ended		Twelve Months Ended December 31,
Average OccupancyRates(1)(2):	September 30, 2016		2015		2014		2013		2012
Office Portfolio	90.6	%	90.9	%	90.0	%	89.7	%	88.3	%
Multifamily Portfolio	97.6	%	98.2	%	98.5	%	98.6	%	98.5	%

___________________________________________________

(1) Occupancy rates include the impact of property acquisitions, most of whose occupancy rates at the time of acquisition were well below that of our existing portfolio.

(2) Average occupancy rates are calculated by averaging the occupancy rates on the first and last day of a quarter, and for periods longer than a quarter, by averaging the occupancy rates at the end of each of the quarters in the period and at the end of the quarter immediately prior to the start of the period.

Comparison of three months ended September 30, 2016 to three months ended September 30, 2015

Revenues

Office Rental Revenue:  Office rental revenue includes rental revenues from our office properties, percentage rent on the retail space contained within office properties and lease termination income.  Office rental revenue increased by $25.3 million, or 24.5%, to $128.7 million for the three months ended September 30, 2016, compared to $103.4 million for the three months ended September 30, 2015. The increase was primarily due to rental revenues from properties that we acquired in 2016 of $22.8 million and an increase in rental revenues of $2.6 million from the properties that we owned throughout both periods, partially offset by a decrease in rental revenues from a property that we sold during the third quarter of $0.1 million. The increase in rental revenue from the properties that we owned throughout both periods was primarily due to an increase in rental rates, which was partially offset by a decrease in the accretion from below-market leases of $0.8 million.

Office Tenant Recoveries:  Office tenant recoveries increased by $1.8 million, or 16.62%, to $12.9 million for the three months ended September 30, 2016, compared to $11.1 million for the three months ended September 30, 2015. The increase was primarily due to tenant recoveries of $1.2 million from properties that we acquired and an increase in tenant recoveries of $0.7 million for the properties that we owned throughout both periods, partially offset by a decrease in tenant recoveries from a property that we sold of $0.1 million. The increase in tenant recoveries from the properties that we owned throughout both periods was primarily due to timing in the recoveries from prior period reconciliations.

Office Parking and Other Income: Office parking and other income increased by $4.2 million, or 19.5%, to $26.0 million for the three months ended September 30, 2016, compared to $21.7 million for the three months ended September 30, 2015. The increase was primarily due to parking and other income of $3.1 million from properties that we acquired and an increase of $1.2 million in parking and other income from properties that we owned throughout both periods, partially offset by a decrease in parking and other income from a property that we sold of $0.1 million. The increase in parking and other income from the properties that we owned throughout both periods primarily reflects increases in rates.

Multifamily Revenue:  Total multifamily revenue consists of rent, parking income and other income.  Total multifamily revenue increased by $0.7 million, or 2.8%, to $24.5 million for the three months ended September 30, 2016, compared to $23.9 million for the three months ended September 30, 2015.  The increase was primarily due to increases in rental rates.

39

Operating Expenses

Office Rental Expenses:  Office rental expenses increased by $7.7 million, or 15.7%, to $56.9 million for the three months ended September 30, 2016, compared to $49.2 million for the three months ended September 30, 2015. The increase was due to rental expenses of $8.9 million from properties that we acquired, partially offset by a decrease in rental expenses of $1.1 million from properties that we owned throughout both periods and a decrease in rental expenses of $0.1 million from a property that we sold. The decrease from properties that we owned throughout both periods was primarily due to a decrease in utilities expense.

Multifamily Rental Expenses:  Multifamily rental expense decreased by $0.2 million, or 3.9%, to $6.0 million for the three months ended September 30, 2016, compared to $6.2 million for the three months ended September 30, 2015.  The decrease was primarily due to a decrease in utilities expense and excise taxes.

General and Administrative Expenses:  General and administrative expenses increased by $1.2 million, or 17.9%, to $8.1 million for the three months ended September 30, 2016, compared to $6.9 million for the three months ended September 30, 2015. The increase was primarily due to an increase in equity compensation expense.

Depreciation and Amortization:  Depreciation and amortization expense increased by $11.6 million, or 22.2%, to $63.8 million for the three months ended September 30, 2016, compared to $52.2 million for the three months ended September 30, 2015.  The increase was primarily due to depreciation and amortization of $11.7 million from properties that we acquired and an increase in depreciation and amortization of $0.4 million from properties that we owned throughout both periods, partially offset by a decrease in depreciation and amortization from a property that we sold of $0.5 million.

Non-Operating Income and Expenses

Other Income and Other Expenses: Other income increased by $0.2 million, or 7.8%, to $2.3 million for the three months ended September 30, 2016, compared to $2.1 million for the three months ended September 30, 2015, and other expenses increased by $0.1 million or 7.7% to $1.7 million for the three months ended September 30, 2016, compared to $1.6 million for the three months ended September 30, 2015. The increase for other income and other expense was primarily due to an increase in revenues and the related expenses from managing our unconsolidated Funds as well as an increase in revenues and the related expenses from a gym that we own and operate in Honolulu, Hawaii.

Income, Including Depreciation, from Unconsolidated Real Estate Funds:  The income, including depreciation, from unconsolidated real estate funds represents our equity interest in the operating results, net of depreciation, of our unconsolidated Funds.  Our share of the income, including depreciation, from our unconsolidated Funds increased by $1.4 million, or 159.9%, to $2.3 million for the three months ended September 30, 2016 compared to $0.9 million for the three months ended September 30, 2015. The increase was primarily due to an increase in rental revenues and real estate tax refunds. The increase in rental revenues reflects an increase in rental rates. See Note 5 to our consolidated financial statements in Item 1 of this Report for more detail regarding our unconsolidated Funds.

Interest Expense:  Interest expense increased by $3.8 million, or 11.5%, to $36.5 million for the three months ended September 30, 2016, compared to $32.7 million for the three months ended September 30, 2015.  The increase was due to interest expense of $4.4 million from new debt related to acquisitions, partially offset by a decrease in interest expense of $0.6 million on our remaining debt as a result of refinancing at lower interest rates during 2015 and 2016. See Notes 7 and 9 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivative contracts.

Acquisition-related Expenses: Acquisition expenses include the costs of acquisitions that we close, as well as those that we do not close. Acquisition expenses increased by $1.0 million to $1.2 million for the three months ended September 30, 2016 compared to $0.2 million for the three months ended September 30, 2015. The increase reflects the two office properties that we acquired during the third quarter. See Note 3 to our consolidated financial statements in Item 1 of this Report for more information regarding our completed acquisitions.

Gains on sales of investments in real estate: During the three months ended September 30, 2016, we sold a thirty-five percent ownership interest in one of our consolidated joint ventures to a third party investor and recognized a gain of $0.6 million, and we sold an office property and recognized a gain of $12.7 million. See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our sales of ownership interests in our consolidated joint ventures to third party investors and property dispositions.

40

Comparison of nine months ended September 30, 2016 to nine months ended September 30, 2015

Revenues

Office Rental Revenue:  Office rental revenue increased by $58.5 million, or 19.0%, to $366.4 million for the nine months ended September 30, 2016, compared to $307.9 million for the nine months ended September 30, 2015.  The increase was primarily due to rental revenues from properties that we acquired in 2015 and 2016 of $51.5 million, an increase in rental revenues of $6.8 million from the properties that we owned throughout both periods, and an increase in rental revenues from a property that we sold during the third quarter of $0.2 million. The increase in rental revenue from the properties that we owned throughout both periods was primarily due to an increase in rental rates, which was partially offset by a decrease in the accretion from below-market leases of $2.6 million.

Office Tenant Recoveries:  Office tenant recoveries increased by $1.4 million, or 4.4%, to $34.1 million for the nine months ended September 30, 2016, compared to $32.7 million for the nine months ended September 30, 2015.  The increase was primarily due to tenant recoveries of $2.9 million from properties that we acquired, partially offset by a decrease in tenant recoveries of $1.5 million for the properties that we owned throughout both periods. The decrease in tenant recoveries from the properties that we owned throughout both periods was primarily due to lower current period recoveries as a result of lower recoverable operating costs.

Office Parking and Other Income: Office parking and other income increased by $10.7 million, or 16.7%, to $74.6 million for the nine months ended September 30, 2016, compared to $63.9 million for the nine months ended September 30, 2015. The increase was primarily due to parking and other income of $7.0 million from properties that we acquired and an increase of $3.7 million in parking and other income from properties that we owned throughout both periods. The increase in parking and other income from the properties that we owned throughout both periods primarily reflects increases in rates.

Multifamily Revenue:  Total multifamily revenue increased by $2.0 million, or 2.8%, to $72.8 million for the nine months ended September 30, 2016, compared to $70.9 million for the nine months ended September 30, 2015.  The increase was primarily due to increases in rental rates.

Operating Expenses

Office Rental Expenses:  Office rental expenses increased by $18.3 million, or 13.0%, to $158.2 million for the nine months ended September 30, 2016, compared to $139.9 million for the nine months ended September 30, 2015. The increase was due to rental expenses of $20.1 million from properties that we acquired, partially offset by a decrease of $1.8 million from properties that we owned throughout both periods. The decrease from properties that we owned throughout both periods was primarily due to a decrease in utilities expense.

Multifamily Rental Expenses:  Multifamily rental expense decreased by $0.6 million, or 3.5%, to $17.3 million for the nine months ended September 30, 2016, compared to $17.9 million for the nine months ended September 30, 2015.  The decrease was primarily due to an excise tax refund of $0.5 million.

General and Administrative Expenses:  General and administrative expenses increased by $3.9 million, or 17.8%, to $25.6 million for the nine months ended September 30, 2016, compared to $21.7 million for the nine months ended September 30, 2015. The increase was primarily due to payroll taxes of $1.4 million related to the exercise of options as well as a $1.9 million increase in equity compensation expense.

Depreciation and Amortization:  Depreciation and amortization expense increased by $28.6 million, or 18.7%, to $181.9 million for the nine months ended September 30, 2016, compared to $153.3 million for the nine months ended September 30, 2015. The increase was primarily due to depreciation and amortization of $26.6 million from properties that we acquired and an increase in depreciation and amortization of $3.0 million from properties that we owned throughout both periods, partially offset by a decrease in depreciation and amortization from a property that we sold of $1.0 million.

41

Non-Operating Income and Expenses

Other Income and Other Expenses: Other income decreased by $6.6 million, or 50.2%, to $6.5 million for the nine months ended September 30, 2016, compared to $13.1 million for the nine months ended September 30, 2015, and other expenses increased by $167 thousand, or 3.5% to $5.0 million for the nine months ended September 30, 2016 compared to $4.8 million for the nine months ended September 30, 2015. The decrease in other income was primarily due to $6.6 million of accelerated accretion that we recognized related to an above market ground lease for which we acquired the underlying fee interest in the land in the first quarter of 2015. See Note 3 to our consolidated financial statements in Item 1 of this Report for more information regarding the acquisition of the fee interest.

Income, Including Depreciation, from Unconsolidated Real Estate Funds:  Our share of the income, including depreciation, from our unconsolidated Funds increased by $2.0 million, or 56.8%, to $5.6 million for the nine months ended September 30, 2016 compared to $3.5 million for the nine months ended September 30, 2015. The increase was primarily due to an increase in rental revenues and real estate tax refunds. The increase in rental revenues reflects an increase in rental rates. See Note 5 to our consolidated financial statements in Item 1 of this Report for more information regarding our unconsolidated Funds.

Interest Expense:  Interest expense increased by $8.3 million, or 8.2%, to $109.8 million for the nine months ended September 30, 2016, compared to $101.5 million for the nine months ended September 30, 2015.  The increase was due to interest expense of $9.2 million from new debt related to acquisitions, partially offset by a decrease in interest expense of $0.9 million on our remaining debt as a result of refinancing at lower interest rates during 2015 and 2016. See Notes 7 and 9 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivative contracts.

Acquisition-related Expenses: Acquisition expenses include the costs of acquisitions that we close, as well as those that we do not close. Acquisition expenses increased by $2.2 million to $2.9 million for the nine months ended September 30, 2016 compared to $0.6 million for the nine months ended September 30, 2015. The increase reflects six office properties that our consolidated joint ventures acquired during 2016 compared to only one office property that we acquired in 2015. See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our completed acquisitions.

Gains on sales of investments in real estate: During the nine months ended September 30, 2016, we sold a thirty-percent ownership interest in one of our consolidated joint ventures to a third party investor and recognized a gain of $1.1 million, we sold a thirty-five percent ownership interest in one of our consolidated joint ventures to a third party investor and recognized a gain of $0.6 million, and we sold an office property and recognized a gain of $12.7 million. See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our sales of ownership interests in our consolidated joint ventures to third party investors and property dispositions.

42

Non-GAAP Supplemental Financial Measure: FFO

Usefulness to Investors

Many investors use FFO as one performance yardstick to compare the operating performance of REITs.  FFO represents net income (loss), computed in accordance with GAAP, excluding (i) gains (or losses) from sales of depreciable operating property, (ii) impairments of depreciable operating property, (iii) real estate depreciation and amortization (other than amortization of deferred financing costs), and (iv) the same adjustments for unconsolidated funds and consolidated joint ventures.  

We calculate FFO in accordance with the standards established by NAREIT. Like any metric, FFO has limitations as a measure of our performance, because it excludes depreciation and amortization, and captures neither the changes in the value of our properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results from operations.  Other REITs may not calculate FFO in accordance with the NAREIT definition and, accordingly, our FFO may not be comparable to the FFO of other REITs. Accordingly, FFO should be considered only as a supplement to net income as a measure of our performance.  FFO should not be used as a measure of our liquidity, nor is it indicative of cash available to fund our cash needs, including our ability to pay dividends.  FFO should not be used as a supplement to or a substitute measure for cash flow from operating activities computed in accordance with GAAP.

Comparison of Results

For the three months ended September 30, 2016, FFO increased by $13.5 million, or 19.2%, to $83.9 million, compared to $70.4 million for the three months ended September 30, 2015. The increase was primarily due to (i) an increase in operating income from our office portfolio due to acquisitions and (ii) an increase in operating income from our multifamily portfolio due to higher rental rates, partially offset by increases in (a) interest expense due to new debt related to acquisitions, (b) general and administrative expenses due to an increase in equity compensation and (c) acquisition-related expenses.

For the nine months ended September 30, 2016, FFO increased by $24.5 million, or 11.3%, to $241.9 million, compared to $217.4 million for the nine months ended September 30, 2015. Excluding $6.6 million of accelerated non cash accretion of an above-market ground lease from the acquisition of the fee under one of our Honolulu buildings in the first quarter of 2015, our FFO increased by $31.1 million or 14.7% for the same reasons described in the previous paragraph.

Reconciliation to GAAP

The table below (in thousands) reconciles our FFO (which includes the FFO attributable to the noncontrolling interests in our Operating Partnership but excludes the FFO attributable to the noncontrolling interests in our consolidated joint ventures) to net income attributable to common stockholders computed in accordance with GAAP:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217
Depreciation and amortization of real estate assets	63,827			52,229			181,947			153,309
Net income attributable to noncontrolling interests	3,950			2,089			7,928			7,932
Adjustments attributable to unconsolidated funds(1)	4,037			4,008			11,935			12,001
Adjustments attributable to consolidated joint ventures(1)	(6,510		)	(18		)	(11,326		)	(76		)
Gains on sales of investments in real estate	(13,245		)	—			(14,327		)	—
FFO	$	83,907		$	70,378		$	241,853		$	217,383

_____________________________________________________

(1) Adjusts for (i) the net income and depreciation and amortization of real estate assets that is attributable to the noncontrolling interests in our consolidated joint ventures and (ii) our share of our unconsolidated Funds depreciation and amortization of real estate assets.

43

Liquidity and Capital Resources

General

We have typically financed our capital needs through lines of credit and long-term secured loans. To mitigate the impact of fluctuations in interest rates on our cash flows from operations, some of our long-term secured loans carry fixed interest rates, and we generally enter into interest rate swap agreements with respect to our loans with floating interest rates.  These swap agreements generally expire between one to two years before the maturity date of the related loan, during which time we can refinance the loan without any interest penalty. See Notes 7 and 9 to our consolidated financial statements in Item 1 of this Report for more detail regarding our debt and derivatives.  

At September 30, 2016, we had consolidated debt of $4.44 billion, which included the debt of our consolidated joint ventures. At September 30, 2016, $3.60 billion of our consolidated debt had an interest rate that was effectively fixed under the terms of the loan or a swap, with (i) a weighted average remaining life of 5.0 years, (ii) a weighted average remaining period during which the interest rate was fixed of 3.1 years, (iii) a weighted average annual interest rate of 3.24% and (iv) including non-cash amortization of deferred loan costs, a weighted average annual interest rate of 3.39%.

Financing Activity for nine months ended September 30, 2016

For a description of our financing activities during the nine months ended September 30, 2016, please see "Acquisitions and Dispositions, Financings, Developments and Repositionings" above.

Short term liquidity

Excluding potential acquisitions and debt refinancings, we expect to meet our short term operating liquidity requirements through cash on hand, cash generated by operations, and as necessary, our $400 million revolving credit facility. See Note 7 to our consolidated financial statements in Item 1 of this Report for more information regarding our revolving credit facility.

We are currently developing two multifamily projects, one in our Brentwood submarket in Los Angeles, and one in Honolulu, Hawaii, please see "Acquisitions and Dispositions, Financings, Developments and Repositionings" above. We intend to finance the costs of these development projects through cash on hand, cash generated by operations, and as necessary, our revolving credit facility.

Long term liquidity

Our long-term liquidity needs consist primarily of funds necessary to pay for acquisitions, developments and repositioning of properties, non-recurring capital expenditures and refinancing of indebtedness. We do not expect that we will have sufficient funds on hand to cover all of these long-term cash requirements. The nature of our business, and the requirements imposed by REIT federal tax rules that we distribute a substantial majority of our income on an annual basis, may cause us to have substantial liquidity needs over the long term. We plan to meet our additional long-term liquidity needs through long-term secured indebtedness, the issuance of equity securities, including OP Units, property dispositions and joint venture transactions. We have an ATM program which would allow us, subject to market conditions, to sell up to an additional $350 million as of the date of this Report.

Contractual Obligations

See Note 7 to our consolidated financial statements in Item 1 of this Report for information regarding our minimum future principal payments due on our secured notes payable and revolving credit facility, as well as the interest rates that determine our future periodic interest payments, Note 15 for information regarding our minimum future ground lease payments, and Note 16 for information regarding our contractual obligations related to our Moanalua development.

44

Cash Flows

Comparison of nine months ended September 30, 2016 to nine months ended September 30, 2015

Cash flows from operating activities

Our cash flows from operating activities are primarily dependent upon the occupancy level of our portfolio, the rental rates achieved on our leases, the collectability of rent and recoveries from our tenants and the level of our operating expenses and other general and administrative costs.  Net cash provided by operating activities increased by $60.0 million to $265.7 million for the nine months ended September 30, 2016 compared to $205.7 million for the nine months ended September 30, 2015.  The increase was primarily due to (i) an increase in cash operating income from our office portfolio due to acquisitions, (ii) an increase in cash operating income from our multifamily portfolio due to higher rental rates, partially offset by (iii) an increase in general and administrative expenses due to payroll taxes from the exercise of options, (iv) an increase in cash interest expense due to higher debt balances, and (v) an increase in acquisition-related expenses.

Cash flows from investing activities

Our net cash used in investing activities is generally used to fund property acquisitions, developments and redevelopment projects, and recurring and non-recurring capital expenditures. Net cash used in investing activities increased by $1.19 billion to $1.33 billion for the nine months ended September 30, 2016 compared to $137.7 million for the nine months ended September 30, 2015. The increase primarily reflects the expenditure of $1.62 billion for acquisitions, partially offset by proceeds of $348.2 million from the sales of investments in real estate. See Note 3 to our consolidated financial statements in Item 1 of this Report for more detail regarding our acquisitions and dispositions.

Cash flows from financing activities

Our net cash related to financing activities is generally impacted by our borrowings and capital activities, as well as dividends and distributions paid to common stockholders and noncontrolling interests, respectively.  Net cash provided by financing activities increased by $1.19 billion to $1.12 billion for the nine months ended September 30, 2016, compared to $76.8 million cash used for the nine months ended September 30, 2015. The increase primarily reflects an increase in net borrowings of $764.5 million and equity contributed by noncontrolling interests to our consolidated joint ventures of $459.8 million, partially offset by taxes paid on the exercise of options of $53.5 million.

45

Off-Balance Sheet Arrangements

Description of our Unconsolidated Funds

We manage and own equity interests in two unconsolidated Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet.  At September 30, 2016, we held equity interests of 68.61% of Fund X and 24.25% of Partnership X. Our Funds pay us fees and reimburse us for certain expenses related to property management and other services we provide to our Funds. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. See Note 5 to our consolidated financial statements in Item 1 of this Report for more information regarding our unconsolidated Funds.

Debt of our Unconsolidated Funds

We do not have any debt outstanding in connection with our interest in our unconsolidated Funds, however each of our Funds has their own debt secured by the properties that they own.  The table below summarizes the debt of our Funds as of September 30, 2016, the amounts represent 100% (not our pro-rata share) of amounts related to our Funds:

Fund	Principal Balance(1) (in millions)		Loan Maturity Date	Variable Interest Rate	Swap Maturity Date	Swap Fixed Interest Rate
Fund X(2)	$	325.0	5/1/2018	LIBOR + 1.75%	5/1/2017	2.35%
Partnership X(3)	110.0		3/1/2023	LIBOR + 1.40%	3/1/2021	2.30%
	$	435.0

_____________________________________________________

(1) We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve-outs under these loans, and also guaranteed the related swaps, although we have an indemnity from our unconsolidated Funds for any amounts that we would be required to pay under these agreements. As of September 30, 2016, all of the obligations under the loans and swap agreements have been performed by our unconsolidated Funds in accordance with the terms of those agreements.

(2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.2 million.

(3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.4 million.

Critical Accounting Policies

We have not made any material changes during the period covered by this Report to our critical accounting policies disclosed in our 2015 Annual Report on Form 10-K. For a discussion of recently issued and adopted accounting literature, see Note 2 to our consolidated financial statements in Item 1 of this Report.

Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements, which have been prepared in accordance with GAAP, which requires us to make estimates of certain items. These estimates, which are inherently subjective and subject to change, affect the reported amounts of our assets, liabilities, revenues and expenses. While we believe that our estimates are based upon reasonable assumptions and judgments at the time that they were made, some of our estimates will inevitably prove to be incorrect, and as a result, actual outcomes will could differ from our estimates, and those differences—positive or negative—could be material. Some of our estimates are subject to adjustment as we believe appropriate, based on revised estimates, and reconciliation to actual results when available.

46

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

We use derivative instruments to hedge interest rate risk related to our floating rate borrowings. However, our use of these instruments does expose us to credit risk from the potential inability of our counterparties to perform under the terms of those agreements. We attempt to minimize this credit risk by contracting with a variety of high-quality financial counterparties. See Notes 7 and 9 to our consolidated financial statements in Item 1 of this Report for more information regarding our debt and derivatives.

At September 30, 2016, 18.9% of our debt was unhedged floating rate debt. A fifty-basis point change in the one month USD LIBOR interest rate would result in an annual impact to our earnings (through interest expense) of approximately $4.2 million. We calculate interest sensitivity by multiplying the amount of unhedged floating rate debt by fifty-basis points.

Item 4.  Controls and Procedures

As of September 30, 2016, the end of the period covered by this Report, we carried out an evaluation, under the supervision and with the participation of management, including our CEO and CFO, regarding the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) at the end of the period covered by this Report. Based on the foregoing, our CEO and CFO concluded, as of that time, that our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in reports filed or submitted under the Exchange Act (i) is processed, recorded, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) is accumulated and communicated to our management, including our CEO and our CFO, as appropriate, to allow for timely decisions regarding required disclosure. There have not been any changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

47

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business. Excluding ordinary routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations.

Item 1A.  Risk Factors

Except for any additional relevant information disclosed in our public reports during 2016, we are not aware of any other material changes to the risk factors disclosed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.  Defaults Upon Senior Securities

None.

Item 4.  Mine Safety Disclosures

Not applicable.

Item 5.  Other Information

None.

Item 6.  Exhibits

Exhibit NumberDescription

31.1    Certificate of CEO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2    Certificate of CFO pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*    Certificate of CEO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*    Certificate of CFO pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS    XBRL Instance Document.

101.SCH    XBRL Taxonomy Extension Schema Document.

101.CAL    XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF    XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB    XBRL Taxonomy Extension Label Linkbase Document

101.PRE    XBRL Taxonomy Extension Presentation Linkbase Document.

________________________________________________

*    In accordance with SEC Release No. 33-8212, these exhibits are being furnished, and are not being filed as part of this Report on Form 10-Q or as a separate disclosure document, and are not being incorporated by reference into any Securities Act registration statement.

48

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		DOUGLAS EMMETT, INC.
Date:	November 4, 2016	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO
Date:	November 4, 2016	By:	/s/ MONA M. GISLER
			Mona M. Gisler
			CFO

49

EX-31.1

EXHIBIT 31.1

CEO Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Jordan L. Kaplan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Douglas Emmett, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a

material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;    

3. Based on my knowledge, the financial statements, and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2016	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO

EX-31.2

EXHIBIT 31.2

CFO Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Mona M. Gisler, certify that: 

1. I have reviewed this Quarterly Report on Form 10-Q of Douglas Emmett, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	November 4, 2016	By:	/s/ MONA M. GISLER
			Mona M. Gisler
			CFO

EX-32.1

EXHIBIT 32.1

OFFICERS’ CERTIFICATIONS

CEO Certification

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Douglas Emmett, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that:

(i) the accompanying quarterly report on Form 10-Q of the Company for the period ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 4, 2016	By:	/s/ JORDAN L. KAPLAN
			Jordan L. Kaplan
			President and CEO

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

EX-32.2

EXHIBIT 32.2

OFFICERS’ CERTIFICATIONS

CFO Certification

Pursuant to 18 U.S.C. § 1350, as created by Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned officer of Douglas Emmett, Inc. (the “Company”), hereby certifies, to such officer’s knowledge, that:

(i) the accompanying quarterly report on Form 10-Q of the Company for the period ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	November 4, 2016	By:	/s/ MONA M. GISLER
			Mona M. Gisler
			CFO

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

The foregoing certification is being furnished solely to accompany the Report pursuant to 18 U.S.C. §1350, and is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and is not to be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	Douglas Emmett Inc
Entity Central Index Key	0001364250
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		151,526,990

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Assets
Land	$ 1,025,704	$ 897,916
Buildings and improvements	7,215,310	5,644,546
Tenant improvements and lease intangibles	795,600	696,647
Property under development	45,535	26,900
Investment in real estate, gross	9,082,149	7,266,009
Less: accumulated depreciation and amortization	(1,855,427)	(1,687,998)
Investment in real estate, net	7,226,722	5,578,011
Real estate held for sale, net	0	42,943
Cash and cash equivalents	158,415	101,798
Tenant receivables, net	2,168	1,907
Deferred rent receivables, net	90,480	79,837
Acquired lease intangible assets, net	4,990	4,484
Interest rate contract assets	0	4,830
Investment in unconsolidated real estate funds	144,930	164,631
Other assets	17,568	87,720
Total assets	7,645,273	6,066,161
Liabilities
Secured notes payable and revolving credit facility, net	4,401,851	3,611,276
Interest payable, accounts payable and deferred revenue	94,792	57,417
Security deposits	46,144	38,683
Acquired lease intangible liabilities, net	74,151	28,605
Interest rate contract liabilities	28,046	16,310
Dividends payable	33,248	32,322
Total liabilities	4,678,232	3,784,613
Douglas Emmett, Inc. stockholders' equity:
Common Stock, $0.01 par value, 750,000,000 authorized, 151,126,112 and 146,919,187 outstanding at September 30, 2016 and December 31, 2015, respectively	1,511	1,469
Additional paid-in capital	2,719,856	2,706,753
Accumulated other comprehensive loss	(23,661)	(9,285)
Accumulated deficit	(805,529)	(772,726)
Total Douglas Emmett, Inc. stockholders' equity	1,892,177	1,926,211
Noncontrolling interests	1,074,864	355,337
Total equity	2,967,041	2,281,548
Total liabilities and equity	$ 7,645,273	$ 6,066,161

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares outstanding (in shares)	151,126,112	146,919,187

XML

Consolidated Statements Of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Office rental
Rental revenues	$ 128,744	$ 103,436	$ 366,400	$ 307,895
Tenant recoveries	12,914	11,074	34,111	32,687
Parking and other income	25,950	21,715	74,572	63,890
Total office revenues	167,608	136,225	475,083	404,472
Multifamily rental
Rental revenues	22,801	22,133	67,634	65,752
Parking and other income	1,712	1,719	5,191	5,119
Total multifamily revenues	24,513	23,852	72,825	70,871
Total revenues	192,121	160,077	547,908	475,343
Operating Expenses
Office expenses	56,926	49,195	158,190	139,936
Multifamily expenses	5,950	6,191	17,322	17,941
General and administrative	8,099	6,867	25,573	21,701
Depreciation and amortization	63,827	52,229	181,947	153,309
Total operating expenses	134,802	114,482	383,032	332,887
Operating income	57,319	45,595	164,876	142,456
Other income	2,295	2,129	6,527	13,103
Other expenses	(1,728)	(1,605)	(4,963)	(4,796)
Income, including depreciation, from unconsolidated real estate funds	2,334	898	5,564	3,548
Interest expense	(36,479)	(32,705)	(109,842)	(101,521)
Acquisition-related expenses	(1,188)	(153)	(2,865)	(641)
Income before gains	22,553	14,159	59,297	52,149
Gains on sales of investments in real estate	13,245	0	14,327	0
Net income	35,798	14,159	73,624	52,149
Less: Net income attributable to noncontrolling interests	(3,950)	(2,089)	(7,928)	(7,932)
Net income attributable to common stockholders	$ 31,848	$ 12,070	$ 65,696	$ 44,217
Net income attributable to common stockholders per share – basic (usd per share)	$ 0.210	$ 0.082	$ 0.440	$ 0.302
Net income attributable to common stockholders per share – diluted (usd per share)	0.206	0.080	0.428	0.293
Dividends declared per common share (usd per share)	$ 0.22	$ 0.21	$ 0.66	$ 0.63

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 35,798	$ 14,159	$ 73,624	$ 52,149
Other comprehensive income (loss): cash flow hedges	18,429	(8,237)	(17,069)	4,148
Comprehensive income	54,227	5,922	56,555	56,297
Less: Comprehensive (income) loss attributable to noncontrolling interests	(9,048)	(843)	(5,235)	(8,841)
Comprehensive income attributable to common stockholders	$ 45,179	$ 5,079	$ 51,320	$ 47,456

XML

Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net income	$ 73,624	$ 52,149
Adjustments to reconcile net income to net cash provided by operating activities:
Income, including depreciation, from unconsolidated real estate funds	(5,564)	(3,548)
Gain from insurance recoveries for damage to real estate	0	(82)
Gains on sales of investments in real estate	(14,327)	0
Depreciation and amortization	181,947	153,309
Net accretion of acquired lease intangibles	(13,415)	(15,806)
Straight-line rent	(10,915)	(4,463)
Increase in the allowance for doubtful accounts	1,190	151
Amortization of deferred loan costs	5,470	5,136
Amortization of stock-based compensation	7,077	5,973
Operating distributions from unconsolidated real estate funds	1,356	762
Change in working capital components:
Tenant receivables	(1,451)	(48)
Interest payable, accounts payable and deferred revenue	37,389	14,589
Security deposits	7,461	613
Other assets	(4,179)	(3,084)
Net cash provided by operating activities	265,663	205,651
Investing Activities
Capital expenditures for improvements to real estate	(57,771)	(52,833)
Capital expenditures for developments	(18,635)	(2,636)
Insurance recoveries for damage to real estate	0	82
Property acquisitions	(1,619,760)	(89,906)
Proceeds from sales of investments in real estate, net	348,203	0
Proceeds from repayment of note receivable	0	1,000
Loan payments received from related parties	763	906
Contributions to unconsolidated real estate funds	0	(24)
Capital distributions from unconsolidated real estate funds	21,973	5,711
Net cash used in investing activities	(1,325,227)	(137,700)
Financing Activities
Proceeds from borrowings	1,589,500	1,099,400
Repayment of borrowings	(786,156)	(1,060,579)
Loan cost payments	(18,239)	(8,164)
Contributions from noncontrolling interests in consolidated joint ventures	459,750	0
Distributions paid to noncontrolling interests in our Operating Partnership	(26,185)	(17,549)
Cash dividends paid to common stockholders	(97,575)	(91,775)
Proceeds from exercise of stock options	0	1,823
Taxes paid on exercise of stock options	(53,467)	0
Repurchase of OP Units	(826)	0
Proceeds from issuance of common stock, net	49,379	0
Net cash provided by financing activities	1,116,181	(76,844)
Increase (decrease) in cash and cash equivalents	56,617	(8,893)
Cash and cash equivalents at beginning of period	101,798	18,823
Cash and cash equivalents at end of period	158,415	9,930
SUPPLEMENTAL CASH FLOWS INFORMATION
Cash paid for interest, net of capitalized interest of $793 and $701 for the nine months ended September 30, 2016 and 2015, respectively	104,205	96,617
Accrual (increase)/decrease for capital expenditures for improvements to real estate and developments	(68)	1,427
Capitalized stock-based compensation for improvements to real estate and developments	683	610
Write-off of fully depreciated and amortized tenant improvements and lease intangibles	13,746	10,751
Write-off of fully amortized acquired lease intangible assets	1,241	36
Write-off of fully accreted acquired lease intangible liabilities	11,142	22,496
Settlement of note receivable in exchange for land and building acquired	0	26,500
Issuance of OP Units in exchange for land and building acquired	0	1,000
Application of deposit to purchase price of property	75,000	2,500
Loss from market value adjustments	(37,927)	(21,975)
Dividends declared	98,501	92,087
Common stock issued in exchange for OP Units	17,733	18,101
Fund X [Member]
SUPPLEMENTAL CASH FLOWS INFORMATION
Loss from market value adjustments	$ (814)	$ (2,483)

XML

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Capitalized interest paid	$ 793	$ 701

XML

Overview

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview

Overview

Organization and Business Description

Douglas Emmett, Inc. is a fully integrated, self-administered and self-managed REIT. We are one of the largest owners and operators of high-quality office and multifamily properties in Los Angeles County, California and Honolulu, Hawaii. We focus on owning, acquiring, developing and managing a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities.

Through our interest in our Operating Partnership and its subsidiaries, our consolidated joint ventures and our unconsolidated Funds, we own or partially own, acquire, develop and manage real estate, consisting primarily of office and multifamily properties in Los Angeles, California and Honolulu, Hawaii.

As of September 30, 2016, we owned a consolidated portfolio of (i) fifty-nine office properties (including ancillary retail space), which included seven office properties owned by our consolidated joint ventures, (ii) ten multifamily properties and (iii) fee interests in two parcels of land subject to ground leases from which we earn ground rent income. Alongside our consolidated portfolio, we also manage and own equity interests in our unconsolidated Funds, which at September 30, 2016, owned eight additional office properties, for a combined sixty-seven office properties in our total portfolio.

The terms "us," "we" and "our" as used in these financial statements refer to Douglas Emmett, Inc. and its subsidiaries on a consolidated basis.

Basis of Presentation

The accompanying financial statements are the consolidated financial statements of Douglas Emmett, Inc. and its subsidiaries, including our Operating Partnership and our consolidated joint ventures.  All significant intercompany balances and transactions have been eliminated in our consolidated financial statements.

As of September 30, 2016, our consolidated financial statements included two consolidated joint ventures which were determined to be VIEs and we are deemed to be the primary beneficiary. The VIEs were established in 2016 in connection with the acquisition of properties by the respective joint ventures. See Note 3 for information regarding the properties that were acquired by these joint ventures in 2016. As of September 30, 2016, the impact of consolidating the VIEs increased our total assets, liabilities and equity by $1.81 billion (of which $1.73 billion related to investment in real estate), $790.7 million and $1.02 billion (of which $738.8 million related to noncontrolling interests), respectively.

During the third quarter of 2016, we sold a property which was classified as real estate held for sale in our consolidated balance sheets. The carrying value in the comparable period has been reclassified to conform to the current period presentation. See Note 3 for information regarding the property that we sold.

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading. The accompanying unaudited interim financial statements include, in our opinion, all adjustments, consisting of normal recurring adjustments, necessary to present fairly the financial information set forth therein. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The interim financial statements should be read in conjunction with the consolidated financial statements in our 2015 Annual Report on Form 10-K and the notes thereto. Any references in this report to the number of properties, square footage, per square footage amounts, apartment units and geography, are outside the scope of our independent registered public accounting firm’s review of our financial statements, in accordance with the standards of the PCAOB.

XML

Summary Of Significant Accounting Policies

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

Summary of Significant Accounting Policies

During the period covered by this Report, we have not made any material changes to our significant accounting policies included in our 2015 Annual Report on Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Income Taxes

We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.

New Accounting Pronouncements 

Changes to GAAP are established by the FASB in the form of ASUs.  We consider the applicability and impact of all ASUs.

Recently Issued and Adopted Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items (Subtopic 225-20)", which eliminates the concept of extraordinary items from GAAP. The FASB is issuing this ASU as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis (Consolidation - Topic 810)", which provides guidance regarding the consolidation of certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments", which amends "Business Combinations" (Topic 805). The ASU requires that an acquirer (i) recognize adjustments to provisional amounts from business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, (ii) record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and (iii) disclosure of the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In March 2016, the FASB issued ASU No. 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships", which amends "Derivatives and Hedging" (Topic 815). The ASU provides guidance on the effect of derivative contract novations on existing hedge accounting relationships. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not in and of itself require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB has created Topic 842. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, which for us would be the first quarter of 2019, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the impact of this ASU.

In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU clarifies the guidance for principal versus agent considerations. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for identifying performance obligations and licensing. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for a variety of revenue recognition related topics. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted commencing the first quarter of 2019. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" which amends "Statement of Cash Flows" (Topic 230). The ASU provides guidance regarding the presentation of certain types of transactions in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. We do not expect the ASU to have a material impact on our statement of cash flows.

The FASB has not issued any other ASUs during 2016 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures.

XML

Investment in Real Estate

9 Months Ended

Sep. 30, 2016

Business Combinations [Abstract]

Investment in Real Estate

Investment in Real Estate

2016 Acquisitions

Westwood Portfolio Acquisition

On February 29, 2016 (Acquisition Date), a consolidated joint venture which we manage and in which we own an equity interest acquired four Class A multi-tenant office properties located in Westwood, California (Westwood Portfolio) for a contract price of $1.34 billion. As of the Acquisition Date, we had contributed sixty-percent of the equity to the joint venture, which was subsequently reduced to thirty-percent on May 31, 2016 (Sell Down Date) when we sold half of our ownership interest to a third party investor. The results of operations for the acquisition are included in our consolidated statements of operations after the Acquisition Date. The table below (in thousands) summarizes our preliminary purchase accounting and funding sources for the acquisition (the purchase accounting is subject to adjustment within twelve months of the acquisition date):

Sources and Uses of Funds	Actual at Closing(1)			Pro Forma Sell Down Adjustments (2)			Pro Forma
Building square footage	1,725						1,725
Uses of funds - Investment in real estate:
Land	$	95,130					$	95,127
Buildings and improvements	1,238,215						1,238,162
Tenant improvements and lease intangibles	50,499						50,497
Acquired above and below-market leases, net(3)	(51,331		)				(51,273		)
Net assets and liabilities acquired(4)	$	1,332,513					$	1,332,513
Source of funds:
Cash on hand(5)	$	153,745		$	—		$	153,745
Credit facility(6)	290,000			(240,000		)	50,000
Non-recourse term loan, net(7)	568,768			—			568,768
Noncontrolling interests	320,000			240,000			560,000
Total source of funds	$	1,332,513		$	—		$	1,332,513

________________________________________________    

(1) Reflects the purchase of the Westwood Portfolio on the Acquisition Date when we contributed sixty-percent of the equity to the consolidated joint venture.

(2) Reflects our sale of thirty-percent of the equity in the joint venture on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the joint venture to thirty-percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us for our costs of holding the investment. We recognized a gain on the sale of $1.1 million, which is included in Gains on sales of investments in real estate in our consolidated statement of operations. We used the proceeds from the sale to pay down the balance owed on our revolving credit facility.

(3) As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years.

(4) The difference between the contract and purchase price related to credits received for prorations and similar matters.

(5) Cash paid included $75.0 million paid through a deposit made before December 31, 2015 (which was included in Other assets in the Company's consolidated balance sheet as reported in our 2015 Form 10-K filing), $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan.

(6) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40%.

(7) Reflects 100% (not the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs of $11.2 million incurred to secure the loan. The loan has a seven-year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR plus 1.40%, which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. The deferred loan costs will be amortized over the seven-year loan term. Deferred loan costs are presented in the balance sheet as a direct deduction from the carrying amount of our secured notes payable and revolving credit facility. See Note 7 for information regarding our consolidated debt.

The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio which are included in the Company’s consolidated statement of operations from the date of acquisition:

Total office revenues	$	56,045
Net income attributable to common stockholders(1)	$	1,444

______________________________________________________

(1) Excluding the impact of transaction costs, net income attributable to common stockholders would have been $3.5 million.

The table below (in thousands, except per share information) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our thirty-percent ownership interest and includes adjustments that give effect to events that are (i) directly attributable to the acquisition, (ii)  expected to have a continuing impact on the Company, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on the Company and does not purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or project the results of operations for any future period. The information does not reflect cost savings or operating synergies that may result from the acquisition or the costs to achieve any such potential cost savings or operating synergies.

	Nine Months Ended September 30,
	2016		2015
Pro forma revenues	$	561,235	$	544,518
Pro forma net income attributable to common stockholders(1)	$	64,623	$	46,203
Pro forma net income attributable to common stockholders per share – basic	$	0.433	$	0.315
Pro forma net income attributable to common stockholders per share – diluted	$	0.421	$	0.306

_____________________________________________________

(1) Transaction costs related to the acquisition have been excluded.

Other 2016 Acquisitions

During the nine months ended September 30, 2016, a consolidated joint venture which we manage and in which we own an equity interest acquired two properties: (i) on July 21, 2016, the joint venture acquired a Class A multi-tenant office property located in Brentwood, California (12100 Wilshire) for a contract price of $225.0 million, and (ii) on September 27, 2016 the joint venture acquired a Class A multi-tenant office property located in Santa Monica, California (233 Wilshire) for a contract price of $139.5 million. As of July 21, 2016, we had contributed fifty-five percent of the equity to the joint venture, which was reduced to twenty-percent when we sold thirty-five percent to a third party investor for $51.6 million, which included $194 thousand to compensate us for our costs of holding the investment. We recognized a gain of $587 thousand on the sale, which is included in Gains on sales of investments in real estate in our consolidated statements of operations. In addition to purchasing a thirty-five percent interest from us, investors contributed $139.8 million to the joint venture. As of September 30, 2016, including the effect of the sale of our interest, investors hold an aggregate of eighty-percent of the capital interests in the joint venture. As part of the acquisitions, the joint venture borrowed a total of $146.0 million under a three year, interest only, non-recourse loan bearing interest at LIBOR + 1.55%. The loan is secured by the acquired properties. See Note 7. The results of operations for the acquisitions are included in our consolidated statements of operations after the respective acquisition dates. The table below (in thousands) summarizes our preliminary purchase accounting for the acquisitions (the purchase accounting is subject to adjustment within twelve months of the acquisition dates). The differences between the contracts and respective purchase prices relate to credits received for prorations and similar matters:

	233 Wilshire			12100 Wilshire
Building square footage	129			365
Investment in real estate:
Land	$	12,503		$	20,154
Buildings and improvements	124,258			199,601
Tenant improvements and lease intangibles	3,802			9,053
Acquired above and below-market leases, net	(2,712		)	(4,412		)
Net assets and liabilities acquired	$	137,851		$	224,396

2016 Disposition

During the third quarter of 2016, we sold a 168,000 square foot Class A office property located in Sherman Oaks, California with a carrying value of $42.8 million for a contract price of $56.7 million, and we incurred transaction costs of $1.2 million resulting in a net gain of $12.7 million. The gain is included in Gains on sales of investments in real estate in our consolidated statements of operations. The property was classified as real estate held for sale in our consolidated balance sheets before it was sold.

2015 Acquisitions

During the nine months ended September 30, 2015, we closed two acquisitions: (i) on March 5, 2015, we purchased a Class A multi-tenant office property (First Financial Plaza), located in Encino, California, for $92.4 million, and (ii) on February 12, 2015, we acquired the fee interest in the land (Harbor Court Land) under one of our office buildings for $27.5 million. We recognized $6.6 million of accretion of an above-market ground lease related to the purchase of the Harbor Court Land, which is included in Other income in the consolidated statement of operations. See Note 4. The results of operations for these acquisitions are included in our consolidated statements of operations after the respective date of their acquisitions. The table below (in thousands) summarizes our purchase price allocations for the acquisitions:

	Harbor Court Land		First Financial Plaza
Building square footage (if applicable)	N/A		227
Investment in real estate:
Land	$	12,060	$	12,092
Buildings and improvements	15,440		75,039
Tenant improvements and lease intangibles	—		6,065
Acquired above and below-market leases, net	—		(790		)
Net assets and liabilities acquired	$	27,500	$	92,406

XML

Acquired Lease Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Lease Intangibles

Acquired Lease Intangibles

Summary of our Acquired Lease Intangibles

The table below (in thousands) summarizes our above/below-market leases:

	September 30, 2016			December 31, 2015
Above-market tenant leases	$	4,705		$	4,661
Accumulated amortization - above-market tenant leases	(2,150		)	(2,670		)
Below-market ground leases	3,198			3,198
Accumulated amortization - below-market ground leases	(763		)	(705		)
Acquired lease intangible assets, net	$	4,990		$	4,484
Below-market tenant leases	$	151,925		$	103,327
Accumulated accretion - below-market tenant leases	(81,294		)	(78,280		)
Above-market ground leases	4,017			4,017
Accumulated accretion - above-market ground leases	(497		)	(459		)
Acquired lease intangible liabilities, net	$	74,151		$	28,605

Impact on the Consolidated Statements of Operations

The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net accretion of above/below-market tenant leases(1)	$	5,093		$	2,858		$	13,390		$	9,181
Amortization of a below-market ground lease(2)	(4		)	(4		)	(13		)	(13		)
Accretion of above-market ground lease(3)	13			13			38			38
Accretion of an above-market ground lease(4)	—			—			—			6,600
Total	$	5,102		$	2,867		$	13,415		$	15,806

_______________________________________________

(1) Recorded as a net increase to office and multifamily rental revenues.

(2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income.

(3) Ground lease from which we incur ground rent expense. Recorded as a decrease to Office expenses.

(4) Ground lease from which we incurred ground rent expense. Recorded as an increase to Other income. During the first quarter of 2015, we acquired the fee interest in the land (Harbor Court Land). See Note 3.

The table below (in thousands) presents the future net accretion of above- and below-market tenant and ground leases at September 30, 2016:

Twelve months ending September 30:	Net increase to revenues		Decrease to expenses		Total
2017	$	16,269	$	50	$	16,319
2018	13,752		50		13,802
2019	12,360		50		12,410
2020	9,669		50		9,719
2021	6,046		50		6,096
Thereafter	7,545		3,270		10,815
Total	$	65,641	$	3,520	$	69,161

XML

Investments In Unconsolidated Real Estate Funds

9 Months Ended

Sep. 30, 2016

Real Estate Investments, Net [Abstract]

Investments In Unconsolidated Real Estate Funds

Investments in Unconsolidated Real Estate Funds

Description of our Funds

We manage and own equity interests in two unconsolidated Funds, Fund X and Partnership X, through which we and investors own eight office properties totaling 1.8 million square feet.  At September 30, 2016, we held equity interests of 68.61% of Fund X and 24.25% of Partnership X. Our Funds pay us fees and reimburse us for certain expenses related to property management and other services we provide. We also receive distributions based on invested capital and on any profits that exceed certain specified cash returns to the investors. The table below presents (in thousands) cash distributions received from our Funds:

	Nine Months Ended September 30,
	2016		2015
Operating distributions received from our Funds	$	1,356	$	762
Capital distributions received from our Funds	21,973		5,711
Total distributions received	$	23,329	$	6,473

Notes receivable

In April 2013, we loaned $2.9 million to a related party investor in connection with a capital call made by Fund X, and in November 2015, we loaned $0.5 million to Partnership X to fund working capital. Both loans carried interest at LIBOR plus 2.5% per annum and were repaid in full during the first quarter of 2016. The outstanding balance of the Fund X and Partnership X loans at December 31, 2015 of $0.3 million and $0.5 million, respectively, were included in our investment in our unconsolidated funds in our consolidated balance sheet. The interest income recognized on these notes receivable was included in other income in our consolidated statements of operations.

Summarized Financial Information for our Funds

The accounting policies of the Funds are consistent with ours. The tables below present (in thousands) selected financial information for the Funds on a combined basis.  The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value:

	September 30, 2016		December 31, 2015
Total assets	$	691,473	$	691,543
Total liabilities	$	449,842	$	389,372
Total equity	$	241,631	$	302,171

	Nine Months Ended September 30,
	2016		2015
Total revenues	$	54,104	$	52,500
Operating income	$	14,284	$	10,072
Net income	$	5,847	$	1,431

XML

Other Assets

9 Months Ended

Sep. 30, 2016

Other Assets [Abstract]

Other Assets

Other Assets

Other assets consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Restricted cash	$	187	$	194
Prepaid expenses	11,343		6,720
Other indefinite-lived intangible	1,988		1,988
Deposits in escrow	—		75,000
Furniture, fixtures and equipment, net	1,199		1,448
Other	2,851		2,370
Total other assets	$	17,568	$	87,720

XML

Secured Notes Payable and Revolving Credit Facility, net

9 Months Ended

Sep. 30, 2016

Secured Debt [Abstract]

Secured Notes Payable and Revolving Credit Facility, net

Secured Notes Payable and Revolving Credit Facility, net

The following table summarizes (in thousands) our secured notes payable and revolving credit facility:

Description	Maturity Date(1)	Principal Balance as of September 30, 2016			Principal Balance as of December 31, 2015			Variable Interest Rate		Fixed Interest Rate(2)	Swap Maturity Date
Wholly Owned Subsidiaries
Term Loan(3)	12/24/2016	$	—		$	20,000		LIBOR + 1.45%		N/A	--
Term Loan	2/28/2018	1,000			—			N/A		3.00%	--
Term Loan(3)	4/2/2018	—			256,140			LIBOR + 2.00%		N/A	--
Term Loan	8/1/2018	530,000			530,000			LIBOR + 1.70%		N/A	--
Term Loan(4)	8/5/2018	351,472			355,000			N/A		4.14%	--
Term Loan(4)	2/1/2019	150,627			152,733			N/A		4.00%	--
Term Loan(5)	6/5/2019	285,000			285,000			N/A		3.85%	--
Fannie Mae Loan	10/1/2019	145,000			145,000			LIBOR + 1.25%		N/A	--
Term Loan(6)	3/1/2020	347,188			349,070			N/A		4.46%	--
Fannie Mae Loans	11/2/2020	388,080			388,080			LIBOR + 1.65%		3.65%	11/1/2017
Term Loan	4/15/2022	340,000			340,000			LIBOR + 1.40%	(8)	2.77%	4/1/2020
Term Loan	7/27/2022	180,000			180,000			LIBOR + 1.45%	(8)	3.06%	7/1/2020
Term Loan	11/2/2022	400,000			400,000			LIBOR + 1.35%	(8)	2.64%	11/1/2020
Term Loan	6/23/2023	360,000			—			LIBOR + 1.55%	(8)	2.57%	7/1/2021
Fannie Mae Loan	4/1/2025	102,400			102,400			LIBOR + 1.25%	(8)	2.84%	3/1/2020
Fannie Mae Loan	12/1/2025	115,000			115,000			LIBOR + 1.25%	(8)	2.76%	12/1/2020
Revolving credit line(7)	8/21/2020	—			—			LIBOR + 1.40%		N/A	--
Total Wholly Owned Debt		$	3,695,767		$	3,618,423
Consolidated Joint Ventures
Term Loan	3/1/2017	$	15,740		$	15,740		LIBOR + 1.60%		N/A	--
Term Loan	7/21/2019	146,000			—			LIBOR + 1.55%		N/A	--
Term Loan	2/28/2023	580,000			—			LIBOR + 1.40%	(8)	2.37%	3/1/2021
Total Debt(9) (10)		$	4,437,507		$	3,634,163
Deferred loan costs, net(11)		(35,656		)	(22,887		)
Total Debt, net		$	4,401,851		$	3,611,276

___________________________________________________

At September 30, 2016, the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.5 years. For the $3.60 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, the weighted average (i) remaining life was 5.0 years, (ii) remaining period during which the interest rate was fixed was 3.1 years, (iii) annual interest rate was 3.24% and (iv) effective interest rate was 3.39% (including the non-cash amortization of deferred loan costs). Except as otherwise noted below, each loan (including our revolving credit facility) is secured by a one or more separate collateral pools consisting of one or more properties, requiring monthly payments of interest only, with the outstanding principal due upon maturity. Maturity dates include the effect of extension options.  The following table summarizes (in thousands) our fixed and floating rate debt:

Description	Principal Balance as of September 30, 2016		Principal Balance as of December 31, 2015
Aggregate swap fixed rate loans	$	2,465,480	$	2,492,360
Aggregate fixed rate loans	1,135,287		1,141,803
Aggregate floating rate loans	836,740		—
Total Debt	$	4,437,507	$	3,634,163

(1) Maturity dates include the effect of extension options.

(2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs. See Note 9 for the details of our interest rate contracts.

(3) At September 30, 2016, these loans have been paid off.

(4) Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(5) Interest only until February 2017, with principal amortization thereafter based upon a 30-year amortization schedule.

(6) Interest rate is fixed until March 1, 2018. Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(7) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20%.

(8) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

(9) See Note 12 for our fair value disclosures.

(10) At September 30, 2016, the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands):

Twelve months ending September 30:
2017	$	34,693
2018	1,224,890
2019	567,444
2020	325,000
2021	503,080
Thereafter	1,782,400
Total future principal payments	$	4,437,507

(11) Deferred loan costs are net of accumulated amortization of $17.6 million and $15.2 million at September 30, 2016 and December 31, 2015, respectively. The table below (in thousands) sets forth loan costs that were expensed and deferred loan costs which are amortized, both of which are included in Interest Expense in our consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Loan costs expensed	$	—	$	396	$	818	$	396
Deferred loan cost amortization	2,227		1,162		5,470		5,136
Total	$	2,227	$	1,558	$	6,288	$	5,532

XML

Interest Payable, Accounts Payable and Deferred Revenue

9 Months Ended

Sep. 30, 2016

Accounts Payable and Accrued Liabilities [Abstract]

Interest Payable, Accounts Payable and Deferred Revenue

Interest Payable, Accounts Payable and Deferred Revenue

Interest payable, accounts payable and deferred revenue consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Interest payable	$	10,195	$	10,028
Accounts payable and accrued liabilities	59,480		23,716
Deferred revenue	25,117		23,673
Total interest payable, accounts payable and deferred revenue	$	94,792	$	57,417

XML

Derivative Contracts

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Contracts

Derivative Contracts

Hedges of Interest Rate Risk

We make use of interest rate swap and interest rate cap contracts to manage the risk associated with changes in interest rates on our floating-rate debt. When we enter into a floating-rate term loan, we generally enter into an interest rate swap agreement for the equivalent principal amount, for a period covering the majority of the loan term, which effectively converts our floating-rate debt to a fixed-rate basis during that time. In limited instances, we make use of interest rate caps to limit our exposure to interest rate increases on our floating-rate debt. We do not speculate in derivatives and we do not make use of any other derivative instruments. See Note 7 for the details of our floating-rate debt that we have hedged.

Accounting for Hedges of Interest Rate Risk

When we enter into derivative agreements, we generally elect to have them designated as cash flow hedges for accounting purposes. For hedging instruments designated as cash flow hedges, changes in fair value of the hedging instrument are recorded in accumulated other comprehensive income (loss) (AOCI), which is a component of equity outside of earnings, and any hedge ineffectiveness is recorded as interest expense. Amounts recorded in AOCI related to our designated hedges are reclassified to interest expense as interest payments are made on the hedged floating-rate debt. Amounts reported in AOCI related to our unconsolidated Funds' hedges are reclassified to income, including depreciation, from unconsolidated real estate funds, as interest payments are made by our Funds on their hedged floating-rate debt. For hedging instruments which are not designated as cash flow hedges, changes in fair value of the hedging instrument are recorded as interest expense. We present our derivatives, including the derivatives of our consolidated joint ventures, on our consolidated balance sheet at fair value on a gross basis. Our share of the AOCI related to our unconsolidated Funds' derivatives is included in our investment in unconsolidated real estate funds on our consolidated balance sheet.

Summary of our Derivatives

As of September 30, 2016, all of our interest rate swaps, including our unconsolidated Funds' interest rate swaps, were designated as cash flow hedges:

	Number of Interest Rate Swaps	Notional (in thousands)(1)
Derivatives	18	$	2,465,480
Unconsolidated Funds' derivatives(2)	2	$	435,000

___________________________________________________

(1) See Note 12 for our derivative fair value disclosures.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Credit-risk-related Contingent Features

We have agreements with each of our interest rate swap counterparties that contain a provision under which we could also be declared in default on our derivative obligations if we default on the underlying indebtedness that we are hedging. As of September 30, 2016, there have been no events of default with respect to our interest rate swaps or our unconsolidated Funds' interest rate swaps. The fair value of our interest rate swaps in a liability position were as follows (in thousands):

Fair value of derivatives in a liability position(1)	September 30, 2016		December 31, 2015
Derivatives	$	30,567	$	19,047
Unconsolidated Funds' derivatives(2)	$	—	$	—

__________________________________________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Counterparty Credit Risk

We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts. We seek to minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings. The fair value of our interest rate swaps in an asset position were as follows (in thousands):

Fair value of derivatives in an asset position(1)	September 30, 2016		December 31, 2015
Derivatives	$	—	$	4,220
Unconsolidated Funds' derivatives(2)	$	200	$	737

___________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Impact of Hedges on AOCI and Consolidated Statements of Operations

The table below presents (in thousands) the effect of our derivative instruments, including our unconsolidated Funds' derivative instruments on our AOCI and statements of operations for the nine months ended September 30:

	2016			2015
Derivatives Designated as Cash Flow Hedges:
Loss recorded in AOCI (effective portion) - derivatives(1)(5)	$	(37,927	)	$	(21,975	)
Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives(2)(5)	$	(814	)	$	(2,483	)
Loss reclassified from AOCI (effective portion) - derivatives(3)(5)	$	(21,361	)	$	(27,897	)
Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives(4)(5)	$	(311	)	$	(709	)
Gain (loss) recorded as interest expense (ineffective portion)(6)	$	—		$	—
Derivatives Not Designated as Cash Flow Hedges:
Gain (loss) recorded as interest expense(7)	$	—		$	—

___________________________________________________

(1) Represents the change in fair value of our interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations.

(2) Represents our share of the change in fair value of our unconsolidated Funds' interest rate swaps designated as a cash flow hedges, which does not impact the statement of operations.

(3) Reclassified from AOCI as an increase to Interest expense.

(4) Reclassified from AOCI as a decrease to Income, including depreciation, from unconsolidated real estate funds (our share).

(5) See the reconciliation of our AOCI in Note 10.

(6) We did not record any ineffectiveness related to our derivatives designated as cash flow hedges.

(7) We do not have any derivatives that are not designated as cash flow hedges.

Future Reclassifications from AOCI

At September 30, 2016, our estimate of the AOCI related to our derivatives and our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months, is presented in the table below (in thousands):

Derivatives(1)	$	16,448
Unconsolidated Funds' derivatives(2)	$	29

________________________________________

(1) Reclassified as an increase to interest expense.

(2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds (our share).

XML

Equity

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Equity

Equity

Equity Transactions

During the nine months ended September 30, 2016, we (i) acquired 1.3 million OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, (ii) acquired 25 thousand OP Units for $826 thousand in cash, at an average price of $33.05 per OP Unit, (iii) issued 1.5 million shares of our common stock for the exercise of 7.6 million stock options on a net settlement basis (net of the exercise price and related taxes), (iv) sold 1.4 million shares of our common stock in open market transactions under our ATM program for net proceeds of $49.4 million, after commissions and other expenses.

In addition, during the nine months ended September 30, 2016, we created two joint ventures to acquire various properties: (i) in the first joint venture, which acquired the Westwood Portfolio, investors acquired an aggregate of seventy-percent of the capital interests, as a result of contributing $320.0 million directly to the joint venture for a forty-percent interest and acquiring a thirty-percent interest from us for $241.1 million, (resulting in a gain of $1.1 million), and (ii) in the second joint venture, which acquired properties during the third quarter, investors acquired an aggregate of eighty-percent of the capital interests, as a result of contributing $139.8 million directly to the joint venture and acquiring a thirty-five-percent interest from us for $51.6 million (resulting in a gain of $587 thousand). See Note 3.

During the nine months ended September 30, 2015, we (i) acquired 1.4 million OP Units in exchange for issuing an equal number of shares of our common stock to the holders of the OP Units, and (ii) issued 136 thousand shares of our common stock for the exercise of options for net proceeds of $1.8 million at an average price of $13.44 per share. In addition, we issued 34 thousand OP Units valued at $1.0 million in connection with the acquisition of land under one of our office buildings. See Note 3.

Condensed Consolidated Statements of Equity

The tables below present (in thousands) our condensed consolidated statements of equity:

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2016	$	1,926,211		$	355,337		$	2,281,548
Net income	65,696			7,928			73,624
Cash flow hedge fair value adjustments	(14,376		)	(2,693		)	(17,069		)
Contributions to consolidated joint venture	—			459,750			459,750
Sales of equity interests in consolidated joint ventures	—			291,029			291,029
Dividends and distributions	(98,501		)	(26,185		)	(124,686		)
Exchange of OP units for common stock	17,733			(17,733		)	—
Repurchase of OP units	(498		)	(328		)	(826		)
Exercise of stock options(1)	(53,467		)	—			(53,467		)
Stock-based compensation	—			7,759			7,759
Sale of common stock, net of offering costs	49,379			—			49,379
Balance as of September 30, 2016	$	1,892,177		$	1,074,864		$	2,967,041

__________________________________________________

(1) We issued shares of our common stock for the exercise of stock options on a net settlement basis (net of the exercise price and related taxes).

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2015	$	1,943,458		$	370,266		$	2,313,724
Net income	44,217			7,932			52,149
Cash flow hedge fair value adjustments	3,239			909			4,148
Dividends and distributions	(92,087		)	(17,549		)	(109,636		)
Exchange of OP units for common stock	18,101			(18,101		)	—
Issuance of OP units	—			1,000			1,000
Exercise of stock options	1,823			—			1,823
Stock-based compensation	—			6,603			6,603
Balance as of September 30, 2015	$	1,918,751		$	351,060		$	2,269,811

Noncontrolling Interests

Our noncontrolling interests consist of interests in our Operating Partnership and consolidated joint ventures which are not owned by us. Noncontrolling interests in our Operating Partnership consist of OP Units and fully-vested LTIP Units, and represented approximately 14% of our Operating Partnership's total interests as of September 30, 2016 when we and our Operating Partnership had 151.1 million shares of common stock and 25.3 million OP Units and fully-vested LTIP Units outstanding. A share of our common stock, an OP Unit and an LTIP Unit (once vested and booked up) have essentially the same economic characteristics, sharing equally in the distributions from our Operating Partnership.  Investors who own OP Units have the right to cause our Operating Partnership to redeem their OP Units for an amount of cash per unit equal to the market value of one share of our common stock at the date of redemption, or, at our election, exchange their OP Units for shares of our common stock on aone-for-one basis. LTIP Units have been granted to our employees and non-employee directors as part of their compensation. These awards generally vest over a service period and once vested can generally be converted to OP Units.

Changes in our Ownership Interest in our Operating Partnership

The table below presents (in thousands) the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:

	Nine Months Ended September 30,
	2016			2015
Net income attributable to common stockholders	$	65,696		$	44,217
Transfers (to) from noncontrolling interests:
Exchange of OP units with noncontrolling interests	17,733			18,101
Repurchase of OP units from noncontrolling interests	(498		)	—
Net transfers from noncontrolling interests	$	17,235		$	18,101
Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	82,931		$	62,318

AOCI Reconciliation⁽¹⁾ 

The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the nine months ended September 30:

	2016			2015
Beginning balance	$	(9,285	)	$	(30,089	)
Other comprehensive loss before reclassifications - derivatives	(37,927		)	(21,975		)
Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives	(814		)	(2,483		)
Reclassifications from AOCI - derivatives(2)	21,361			27,897
Reclassifications from AOCI - unconsolidated Funds' derivatives(3)	311			709
Net current period OCI	(17,069		)	4,148
Less OCI attributable to noncontrolling interests	2,693			(909		)
OCI attributable to common stockholders	(14,376		)	3,239
Ending balance	$	(23,661	)	$	(26,850	)

___________________________________________________

(1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures.

(2) Reclassification as an increase to interest expense.

(3) Reclassification as a decrease to income, including depreciation, from unconsolidated real estate funds.

Equity Compensation

On June 2, 2016, the Douglas Emmett, Inc. 2016 Omnibus Stock Incentive Plan became effective after receiving stockholder approval, superseding our prior plan, the Douglas Emmett, Inc. 2006 Omnibus Stock Incentive Plan. The key terms of the two plans are substantially identical, except for the date of expiration, the number of shares authorized for grants and various technical provisions. Our officers, employees, directors and consultants are eligible to participate in both plans, with grants awarded during June 2016 and onwards awarded under the 2016 Plan, and grants awarded prior to that date awarded under the 2006 Plan and remain outstanding according to their terms. Both plans are administered by the compensation committee of our board of directors.  Total net stock-based compensation expense was $2.3 million and $2.0 million for the three months ended September 30, 2016 and 2015, respectively, and $7.1 million and $6.0 million for the nine months ended September 30, 2016 and 2015, respectively. These amounts are net of capitalized stock-based compensation of $235 thousand and $208 thousand for the three months ended September 30, 2016 and 2015, respectively, and $683 thousand and $610 thousand for the nine months ended September 30, 2016 and 2015, respectively. The total intrinsic value of options exercised was $2.1 million for the three months ended September 30, 2016, and $104.0 million and $2.2 million for the nine months ended September 30, 2016 and 2015, respectively.

XML

EPS

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

EPS

EPS

We calculate basic EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares outstanding during the period. We calculate diluted EPS by dividing the net income attributable to common stockholders for the period by the weighted average number of common shares and dilutive instruments outstanding during the period using the treasury stock method. We account for unvested LTIP awards that contain nonforfeitable rights to dividends as participating securities and include these securities in the computation of basic and diluted EPS using the two-class method. The table below presents the calculation of basic and diluted EPS:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Numerator (in thousands):
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217
Allocation to participating securities: Unvested LTIP units	(180		)	(59		)	(365		)	(224		)
Numerator for the calculation of basic and diluted EPS	$	31,668		$	12,011		$	65,331		$	43,993
Denominator (in thousands):
Weighted average shares of common stock outstanding - basic	150,753			146,331			148,578			145,856
Effect of dilutive securities: Stock options(1)	2,666			4,409			4,241			4,429
Weighted average shares of common stock and common stock equivalents outstanding - diluted	153,419			150,740			152,819			150,285
Basic EPS:
Net income attributable to common stockholders per share	$	0.210		$	0.082		$	0.440		$	0.302
Diluted EPS:
Net income attributable to common stockholders per share	$	0.206		$	0.080		$	0.428		$	0.293

____________________________________________________

(1) The following securities were excluded from the computation of the weighted average diluted shares because the effect of including them would be anti-dilutive to the calculation of diluted EPS:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
OP Units	24,788	26,307	25,148	26,520
Vested LTIP Units	675	8	766	235
Unvested LTIP units	783	647	679	576

XML

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods.  Considerable judgment is necessary to interpret market data and determine an estimated fair value.  The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs.  The hierarchy is as follows:

Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.  

Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.  

Level 3 - inputs are unobservable assumptions generated by the reporting entity

As of September 30, 2016, we did not have any fair value measurements of financial instruments using Level 3 inputs.

Financial instruments disclosed at fair value

Short term financial instruments:The carrying amounts for cash and cash equivalents, tenant receivables, revolving credit line, interest payable, accounts payable, security deposits and dividends payable approximate fair value because of the short-term nature of these instruments.

Secured notes payable:See Note 7 for the details of our secured notes payable. We estimate the fair value of our secured notes payable, which includes the secured notes payable of our consolidated joint ventures, by calculating the credit-adjusted present value of the principal and interest payments for each secured note payable. The calculation incorporates observable market interest rates which we consider to be Level 2 inputs, assumes that the loans will be outstanding through maturity, and excludes any maturity extension options. The table below presents (in thousands) the estimated fair value of our secured notes payable:

Secured Notes Payable:	September 30, 2016		December 31, 2015
Fair value	$	4,482,073	$	3,691,075
Carrying value	$	4,437,507	$	3,634,163

Financial instruments measured at fair value

Derivative instruments:See Note 9 for the details of our derivatives. We present our derivatives on the balance sheet at fair value, on a gross basis, excluding accrued interest.  We estimate the fair value of our derivative instruments by calculating the credit-adjusted present value of the expected future cash flows of each derivative.  The calculation incorporates the contractual terms of the derivatives, observable market interest rates which we consider to be Level 2 inputs, and credit risk adjustments to reflect the counterparty's as well as our own nonperformance risk. Our derivatives are not subject to master netting arrangements.  The table below presents (in thousands) the estimated fair value of our derivatives:

	September 30, 2016		December 31, 2015
Derivative Assets:
Fair value - derivatives(1)	$	—	$	4,830
Fair value - unconsolidated Funds' derivatives(2)	$	221	$	837
Derivative Liabilities:
Fair value - derivatives(1)	$	28,046	$	16,310
Fair value - unconsolidated Funds' derivatives(2)	$	—	$	—

____________________________________________________

(1) Our derivatives are included in interest rate contracts in our consolidated balance sheet. The fair value excludes accrued interest (which is included in interest payable in the consolidated balance sheet).

(2) Represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds.

XML

Segment Reporting

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

Segment information is prepared on the same basis that our management reviews information for operational decision-making purposes.  We operate in two business segments: (i) the acquisition, development, ownership and management of office real estate and (ii) the acquisition, development, ownership and management of multifamily real estate.  The services for our office segment primarily include rental of office space and other tenant services, including parking and storage space rental.  The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources.  Therefore, depreciation and amortization expense is not allocated among segments.  General and administrative expenses and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. Segment profit is not a measure of operating income or cash flows from operating activities as measured by GAAP, it is not indicative of cash available to fund cash needs, and should not be considered as an alternative to cash flows as a measure of liquidity.  Not all companies may calculate segment profit in the same manner.  We consider segment profit to be an appropriate supplemental measure to net income because it can assist both investors and management in understanding the core operations of our properties. The table below presents (in thousands) the operating activity of our reportable segments:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Office Segment
Total office revenues	$	167,608		$	136,225		$	475,083		$	404,472
Office expenses	(56,926		)	(49,195		)	(158,190		)	(139,936		)
Office Segment profit	110,682			87,030			316,893			264,536
Multifamily Segment
Total multifamily revenues	24,513			23,852			72,825			70,871
Multifamily expenses	(5,950		)	(6,191		)	(17,322		)	(17,941		)
Multifamily Segment profit	18,563			17,661			55,503			52,930
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466

The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466
General and administrative	(8,099		)	(6,867		)	(25,573		)	(21,701		)
Depreciation and amortization	(63,827		)	(52,229		)	(181,947		)	(153,309		)
Other income	2,295			2,129			6,527			13,103
Other expenses	(1,728		)	(1,605		)	(4,963		)	(4,796		)
Income, including depreciation, from unconsolidated real estate funds	2,334			898			5,564			3,548
Interest expense	(36,479		)	(32,705		)	(109,842		)	(101,521		)
Acquisition-related expenses	(1,188		)	(153		)	(2,865		)	(641		)
Income before gains	22,553			14,159			59,297			52,149
Gains on sales of investments in real estate	13,245			—			14,327			—
Net income	35,798			14,159			73,624			52,149
Less: Net income attributable to noncontrolling interests	(3,950		)	(2,089		)	(7,928		)	(7,932		)
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217

XML

Future Minimum Lease Rental Receipts

9 Months Ended

Sep. 30, 2016

Operating Leases, Future Minimum Payments Receivable [Abstract]

Future Minimum Lease Rental Receipts

Future Minimum Lease Rental Receipts

We lease space to tenants primarily under non-cancelable operating leases that generally contain provisions for a base rent plus reimbursement for certain operating expenses, and we own fee interests in two parcels of land subject to ground leases from which we earn ground rent income. The table below presents (in thousands) the future minimum base rentals on our non-cancelable office tenant and ground operating leases at September 30, 2016:

Twelve months ending September 30:
2017	$	484,558
2018	426,338
2019	360,404
2020	301,221
2021	230,358
Thereafter	616,925
Total future minimum base rentals(1)	$	2,419,804

_____________________________________________________

(1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) straight line rent, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents.  The amounts assume that early termination options held by tenants are not exercised.

XML

Future Minimum Lease Rental Payments

9 Months Ended

Sep. 30, 2016

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

Future Minimum Lease Rental Payments

Future Minimum Lease Rental Payments

We incurred ground lease payments of $183 thousand for the three months ended September 30, 2016 and 2015, and $550 thousand for the nine months ended September 30, 2016 and 2015. The table below presents (in thousands) the future minimum ground lease payments as of September 30, 2016:

Twelve months ending September 30:
2017	$	733
2018	733
2019	733
2020	733
2021	733
Thereafter	47,827
Total future minimum lease payments(1)	$	51,492

___________________________________________________

(1) Lease term ends on December 31, 2086. Ground rent is fixed at $733 thousand per year until February 28, 2019, and will then be reset to the greater of the existing ground rent or market. The table above assumes that the rental payments will continue to be $733 thousand per year after February 28, 2019.

XML

Commitments, Contingencies and Guarantees

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Guarantees

Commitments, Contingencies and Guarantees

Legal Proceedings

From time to time, we are party to various lawsuits, claims and other legal proceedings that arise in the ordinary course of our business.  Excluding ordinary, routine litigation incidental to our business, we are not currently a party to any legal proceedings that we believe would reasonably be expected to have a materially adverse effect on our business, financial condition or results of operations.

Concentration of Risk

We are subject to credit risk with respect to our tenant receivables and deferred rent receivables related to our tenant leases. Our tenants' ability to honor the terms of their respective leases remains dependent upon the economic, regulatory and social factors. We seek to minimize our credit risk from our tenant leases by (i) targeting smaller, more affluent tenants, from a diverse mix of industries, (ii) performing credit evaluations of prospective tenants and (iii) obtaining security deposits from our tenants.  For the nine months ended September 30, 2016 and 2015, no tenant accounted for more than 10% of our total revenues.  

All of our properties (including the properties owned by our unconsolidated Funds) are located in Los Angeles County, California and Honolulu, Hawaii, and we are dependent on the Southern California and Honolulu economies. Therefore, we are susceptible to adverse local conditions and regulations, as well as natural disasters in those areas.

We are also subject to credit risk from the counterparties on our interest rate swap and interest rate cap contracts that we use to manage the risk associated with our floating rate debt. See Note 9 for the details of our interest rate contracts. We seek to

minimize our credit risk by entering into agreements with a variety of high quality counterparties with investment grade ratings.

We maintain our cash and cash equivalents at high quality financial institutions with investment grade ratings.  Interest bearing accounts at each U.S. banking institution are insured by the FDIC up to $250 thousand.

Asset Retirement Obligations

Conditional asset retirement obligations represent a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement is conditional on a future event that may or may not be within our control.  A liability for a conditional asset retirement obligation must be recorded if the fair value of the obligation can be reasonably estimated.  Environmental site assessments and investigations have identified twenty-five buildings in our consolidated portfolio and four buildings owned by our unconsolidated Funds which contain asbestos, and would have to be removed in compliance with applicable environmental regulations if these properties undergo major renovations or are demolished.  As of September 30, 2016, the obligations to remove the asbestos from these properties have indeterminable settlement dates, and we are unable to reasonably estimate the fair value of the associated conditional asset retirement obligation.

Development Contracts

During the first quarter of 2016, we commenced building an additional 475 apartments (net of existing apartments to be removed) at our Moanalua Hillside Apartments in Honolulu, Hawaii. The $120 million estimated cost of the new apartments does not include the cost of the land which we already owned before beginning the project. We also plan to invest additional capital to upgrade the existing apartments, improve the parking and landscaping, build a new leasing and management office, and construct a new recreation and fitness facility with a new pool. As of September 30, 2016, we had a remaining commitment for contracts related to the development of $109.5 million.

Other Contracts

As of September 30, 2016, we had a remaining commitment for capital expenditure projects and repositionings of approximately $3.0 million.

Guarantees

We made certain environmental and other limited indemnities and guarantees covering customary non-recourse carve- outs for loans related to both of our unconsolidated Funds. We have also guaranteed the related swaps. The entities have agreed to indemnify us for any amounts that we would be required to pay under these agreements. As of September 30, 2016, all obligations under these loans and swap agreements have been performed in accordance with the terms of those agreements. The table below summarizes the debt of our Funds as of September 30, 2016, the amounts represent 100% (not our pro-rata share) of amounts related to our Funds:

Fund(1)	Principal Balance(1) (in millions)		Loan Maturity Date	Variable Interest Rate	Swap Maturity Date	Swap Fixed Interest Rate
Fund X(2)	$	325.0	5/1/2018	LIBOR + 1.75%	5/1/2017	2.35%
Partnership X(3)	110.0		3/1/2023	LIBOR + 1.40%	3/1/2021	2.30%
	$	435.0

___________________________________________________

(1) See Note 5 for more information regarding our unconsolidated Funds.

(2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.2 million.

(3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.4 million.

XML

Summary Of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited interim financial statements have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with US GAAP may have been condensed or omitted pursuant to SEC rules and regulations, although we believe that the disclosures are adequate to make their presentation not misleading.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates.

Income Taxes

Income Taxes

We have elected to be taxed as a REIT under the Code. Provided that we qualify for taxation as a REIT, we are generally not subject to corporate-level income tax on the earnings distributed currently to our stockholders that we derive from our REIT qualifying activities. We are subject to corporate-level tax on the earnings that we derive through our TRS.

New Accounting Pronouncements

New Accounting Pronouncements 

Changes to GAAP are established by the FASB in the form of ASUs.  We consider the applicability and impact of all ASUs.

Recently Issued and Adopted Accounting Pronouncements

In January 2015, the FASB issued ASU No. 2015-01, "Income Statement—Extraordinary and Unusual Items (Subtopic 225-20)", which eliminates the concept of extraordinary items from GAAP. The FASB is issuing this ASU as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In February 2015, the FASB issued ASU No. 2015-02, "Amendments to the Consolidation Analysis (Consolidation - Topic 810)", which provides guidance regarding the consolidation of certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In September 2015, the FASB issued ASU No. 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments", which amends "Business Combinations" (Topic 805). The ASU requires that an acquirer (i) recognize adjustments to provisional amounts from business combinations that are identified during the measurement period in the reporting period in which the adjustment amounts are determined, (ii) record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date and (iii) disclosure of the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is the first quarter of 2016. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

In March 2016, the FASB issued ASU No. 2016-05, "Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships", which amends "Derivatives and Hedging" (Topic 815). The ASU provides guidance on the effect of derivative contract novations on existing hedge accounting relationships. The ASU clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815, does not in and of itself require dedesignation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, which for us would be the first quarter of 2017, and early adoption is permitted. We adopted the ASU in the first quarter of 2016 and it did not have a material impact on our financial position, results of operations or disclosures.

Recently Issued Accounting Pronouncements

In February 2016, the FASB issued ASU No. 2016-02, "Leases" (Topic 842). The ASU increases transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. To meet that objective, the FASB has created Topic 842. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. For example, the vast majority of operating leases will remain classified as operating leases, and lessors will continue to recognize lease income for those leases on a generally straight-line basis over the lease term. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those years, which for us would be the first quarter of 2019, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. We are currently evaluating the impact of this ASU.

In March 2016, the FASB issued ASU No. 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU clarifies the guidance for principal versus agent considerations. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for identifying performance obligations and licensing. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients" which amends "Revenue from Contracts with Customers" (Topic 606). The ASU provides guidance for a variety of revenue recognition related topics. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted commencing the first quarter of 2017. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" which amends "Financial Instruments-Credit Losses" (Topic 326). The ASU provides guidance for measuring credit losses on financial instruments. The ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those years, which for us would be the first quarter of 2020, and early adoption is permitted commencing the first quarter of 2019. The amendments in this ASU should be applied retrospectively. We are currently evaluating the impact of this ASU.

In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" which amends "Statement of Cash Flows" (Topic 230). The ASU provides guidance regarding the presentation of certain types of transactions in the statement of cash flows. The ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those years, which for us would be the first quarter of 2018, and early adoption is permitted. The amendments in this ASU should be applied retrospectively. We do not expect the ASU to have a material impact on our statement of cash flows.

The FASB has not issued any other ASUs during 2016 that we expect to be applicable and have a material impact on our future financial position, results of operations or disclosures.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Our estimates of the fair value of financial instruments were determined using available market information and widely used valuation methods.  Considerable judgment is necessary to interpret market data and determine an estimated fair value.  The use of different market assumptions or valuation methods may have a material effect on the estimated fair values. The FASB fair value framework hierarchy distinguishes between assumptions based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market-based inputs.  The hierarchy is as follows:

Level 1 - inputs utilize unadjusted quoted prices in active markets for identical assets or liabilities.  

Level 2 - inputs are observable either directly or indirectly for similar assets and liabilities in active markets.  

Level 3 - inputs are unobservable assumptions generated by the reporting entity

XML

Investment in Real Estate (Tables)

9 Months Ended

Sep. 30, 2016

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below (in thousands) summarizes our preliminary purchase accounting for the acquisitions (the purchase accounting is subject to adjustment within twelve months of the acquisition dates). The differences between the contracts and respective purchase prices relate to credits received for prorations and similar matters:

	233 Wilshire			12100 Wilshire
Building square footage	129			365
Investment in real estate:
Land	$	12,503		$	20,154
Buildings and improvements	124,258			199,601
Tenant improvements and lease intangibles	3,802			9,053
Acquired above and below-market leases, net	(2,712		)	(4,412		)
Net assets and liabilities acquired	$	137,851		$	224,396

Westwood Portfolio [Member]

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below (in thousands) summarizes our preliminary purchase accounting and funding sources for the acquisition (the purchase accounting is subject to adjustment within twelve months of the acquisition date):

Sources and Uses of Funds	Actual at Closing(1)			Pro Forma Sell Down Adjustments (2)			Pro Forma
Building square footage	1,725						1,725
Uses of funds - Investment in real estate:
Land	$	95,130					$	95,127
Buildings and improvements	1,238,215						1,238,162
Tenant improvements and lease intangibles	50,499						50,497
Acquired above and below-market leases, net(3)	(51,331		)				(51,273		)
Net assets and liabilities acquired(4)	$	1,332,513					$	1,332,513
Source of funds:
Cash on hand(5)	$	153,745		$	—		$	153,745
Credit facility(6)	290,000			(240,000		)	50,000
Non-recourse term loan, net(7)	568,768			—			568,768
Noncontrolling interests	320,000			240,000			560,000
Total source of funds	$	1,332,513		$	—		$	1,332,513

________________________________________________    

(1) Reflects the purchase of the Westwood Portfolio on the Acquisition Date when we contributed sixty-percent of the equity to the consolidated joint venture.

(2) Reflects our sale of thirty-percent of the equity in the joint venture on the Sell Down Date, presented as of the Acquisition Date, treated as in-substance real estate, which reduced our ownership interest in the joint venture to thirty-percent. We sold the interest for the $240.0 million we contributed plus an additional $1.1 million to compensate us for our costs of holding the investment. We recognized a gain on the sale of $1.1 million, which is included in Gains on sales of investments in real estate in our consolidated statement of operations. We used the proceeds from the sale to pay down the balance owed on our revolving credit facility.

(3) As of the Acquisition Date, the weighted average remaining life of the acquired above-and below-market leases was approximately 4.4 years.

(4) The difference between the contract and purchase price related to credits received for prorations and similar matters.

(5) Cash paid included $75.0 million paid through a deposit made before December 31, 2015 (which was included in Other assets in the Company's consolidated balance sheet as reported in our 2015 Form 10-K filing), $67.5 million paid at closing, and $11.2 million spent on loan costs in connection with securing the $580.0 million term loan.

(6) Reflects borrowings using the Company's credit facility, which bears interest at LIBOR plus 1.40%.

(7) Reflects 100% (not the Company's pro rata share) of a $580.0 million interest-only non-recourse loan, net of deferred loan costs of $11.2 million incurred to secure the loan. The loan has a seven-year term and is secured by the Westwood Portfolio. Interest on the loan is floating at LIBOR plus 1.40%, which has been effectively fixed at 2.37% per annum for five years through interest rate swaps. The deferred loan costs will be amortized over the seven-year loan term. Deferred loan costs are presented in the balance sheet as a direct deduction from the carrying amount of our secured notes payable and revolving credit facility. See Note 7 for information regarding our consolidated debt.

Revenue and Net Income Attributable to Common Stockholders from the Westwood Portfolio

The table below (in thousands) presents the revenues and net income attributable to common stockholders from the Westwood Portfolio which are included in the Company’s consolidated statement of operations from the date of acquisition:

Total office revenues	$	56,045
Net income attributable to common stockholders(1)	$	1,444

______________________________________________________

(1) Excluding the impact of transaction costs, net income attributable to common stockholders would have been $3.5 million.

Business Acquisition, Pro Forma Information

The table below (in thousands, except per share information) presents the historical results of Douglas Emmett, Inc. and the Westwood Portfolio on a combined basis as if the acquisition was completed on January 1, 2015, based on our thirty-percent ownership interest and includes adjustments that give effect to events that are (i) directly attributable to the acquisition, (ii)  expected to have a continuing impact on the Company, and (iii) are factually supportable. The pro forma reflects the hypothetical impact of the acquisition on the Company and does not purport to represent what the Company’s results of operations would have been had the acquisition occurred on January 1, 2015, or project the results of operations for any future period. The information does not reflect cost savings or operating synergies that may result from the acquisition or the costs to achieve any such potential cost savings or operating synergies.

	Nine Months Ended September 30,
	2016		2015
Pro forma revenues	$	561,235	$	544,518
Pro forma net income attributable to common stockholders(1)	$	64,623	$	46,203
Pro forma net income attributable to common stockholders per share – basic	$	0.433	$	0.315
Pro forma net income attributable to common stockholders per share – diluted	$	0.421	$	0.306

Harbor Court Land and First Financial Plaza [Member]

Business Acquisition [Line Items]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The table below (in thousands) summarizes our purchase price allocations for the acquisitions:

	Harbor Court Land		First Financial Plaza
Building square footage (if applicable)	N/A		227
Investment in real estate:
Land	$	12,060	$	12,092
Buildings and improvements	15,440		75,039
Tenant improvements and lease intangibles	—		6,065
Acquired above and below-market leases, net	—		(790		)
Net assets and liabilities acquired	$	27,500	$	92,406

XML

Acquired Lease Intangibles (Tables)

9 Months Ended

Sep. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Summary Of Acquired Lease Intangibles

The table below (in thousands) summarizes our above/below-market leases:

	September 30, 2016			December 31, 2015
Above-market tenant leases	$	4,705		$	4,661
Accumulated amortization - above-market tenant leases	(2,150		)	(2,670		)
Below-market ground leases	3,198			3,198
Accumulated amortization - below-market ground leases	(763		)	(705		)
Acquired lease intangible assets, net	$	4,990		$	4,484
Below-market tenant leases	$	151,925		$	103,327
Accumulated accretion - below-market tenant leases	(81,294		)	(78,280		)
Above-market ground leases	4,017			4,017
Accumulated accretion - above-market ground leases	(497		)	(459		)
Acquired lease intangible liabilities, net	$	74,151		$	28,605

Schedule Of Net Amortization Or Accretion Of Above/Below-Market Leases

The table below (in thousands) summarizes the net amortization/accretion related to our above/below-market leases:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Net accretion of above/below-market tenant leases(1)	$	5,093		$	2,858		$	13,390		$	9,181
Amortization of a below-market ground lease(2)	(4		)	(4		)	(13		)	(13		)
Accretion of above-market ground lease(3)	13			13			38			38
Accretion of an above-market ground lease(4)	—			—			—			6,600
Total	$	5,102		$	2,867		$	13,415		$	15,806

_______________________________________________

(1) Recorded as a net increase to office and multifamily rental revenues.

(2) Ground lease from which we earn ground rent income. Recorded as a decrease to office parking and other income.

(3) Ground lease from which we incur ground rent expense. Recorded as a decrease to Office expenses.

(4) Ground lease from which we incurred ground rent expense. Recorded as an increase to Other income. During the first quarter of 2015, we acquired the fee interest in the land (Harbor Court Land). See Note 3.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The table below (in thousands) presents the future net accretion of above- and below-market tenant and ground leases at September 30, 2016:

Twelve months ending September 30:	Net increase to revenues		Decrease to expenses		Total
2017	$	16,269	$	50	$	16,319
2018	13,752		50		13,802
2019	12,360		50		12,410
2020	9,669		50		9,719
2021	6,046		50		6,096
Thereafter	7,545		3,270		10,815
Total	$	65,641	$	3,520	$	69,161

XML

Investments In Unconsolidated Real Estate Funds (Tables)

9 Months Ended

Sep. 30, 2016

Real Estate Investments, Net [Abstract]

Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds and Cash Received From Funds

The table below presents (in thousands) cash distributions received from our Funds:

	Nine Months Ended September 30,
	2016		2015
Operating distributions received from our Funds	$	1,356	$	762
Capital distributions received from our Funds	21,973		5,711
Total distributions received	$	23,329	$	6,473

The tables below present (in thousands) selected financial information for the Funds on a combined basis.  The amounts presented represent 100% (not our pro-rata share) of amounts related to the Funds, and are based upon historical acquired book value:

	September 30, 2016		December 31, 2015
Total assets	$	691,473	$	691,543
Total liabilities	$	449,842	$	389,372
Total equity	$	241,631	$	302,171

	Nine Months Ended September 30,
	2016		2015
Total revenues	$	54,104	$	52,500
Operating income	$	14,284	$	10,072
Net income	$	5,847	$	1,431

XML

Other Assets (Tables)

9 Months Ended

Sep. 30, 2016

Other Assets [Abstract]

Schedule Of Other Assets

Other assets consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Restricted cash	$	187	$	194
Prepaid expenses	11,343		6,720
Other indefinite-lived intangible	1,988		1,988
Deposits in escrow	—		75,000
Furniture, fixtures and equipment, net	1,199		1,448
Other	2,851		2,370
Total other assets	$	17,568	$	87,720

XML

Secured Notes Payable and Revolving Credit Facility, net (Tables)

9 Months Ended

Sep. 30, 2016

Secured Debt [Abstract]

Schedule Of Secured Notes Payable and Revolving Credit Facility

The following table summarizes (in thousands) our secured notes payable and revolving credit facility:

Description	Maturity Date(1)	Principal Balance as of September 30, 2016			Principal Balance as of December 31, 2015			Variable Interest Rate		Fixed Interest Rate(2)	Swap Maturity Date
Wholly Owned Subsidiaries
Term Loan(3)	12/24/2016	$	—		$	20,000		LIBOR + 1.45%		N/A	--
Term Loan	2/28/2018	1,000			—			N/A		3.00%	--
Term Loan(3)	4/2/2018	—			256,140			LIBOR + 2.00%		N/A	--
Term Loan	8/1/2018	530,000			530,000			LIBOR + 1.70%		N/A	--
Term Loan(4)	8/5/2018	351,472			355,000			N/A		4.14%	--
Term Loan(4)	2/1/2019	150,627			152,733			N/A		4.00%	--
Term Loan(5)	6/5/2019	285,000			285,000			N/A		3.85%	--
Fannie Mae Loan	10/1/2019	145,000			145,000			LIBOR + 1.25%		N/A	--
Term Loan(6)	3/1/2020	347,188			349,070			N/A		4.46%	--
Fannie Mae Loans	11/2/2020	388,080			388,080			LIBOR + 1.65%		3.65%	11/1/2017
Term Loan	4/15/2022	340,000			340,000			LIBOR + 1.40%	(8)	2.77%	4/1/2020
Term Loan	7/27/2022	180,000			180,000			LIBOR + 1.45%	(8)	3.06%	7/1/2020
Term Loan	11/2/2022	400,000			400,000			LIBOR + 1.35%	(8)	2.64%	11/1/2020
Term Loan	6/23/2023	360,000			—			LIBOR + 1.55%	(8)	2.57%	7/1/2021
Fannie Mae Loan	4/1/2025	102,400			102,400			LIBOR + 1.25%	(8)	2.84%	3/1/2020
Fannie Mae Loan	12/1/2025	115,000			115,000			LIBOR + 1.25%	(8)	2.76%	12/1/2020
Revolving credit line(7)	8/21/2020	—			—			LIBOR + 1.40%		N/A	--
Total Wholly Owned Debt		$	3,695,767		$	3,618,423
Consolidated Joint Ventures
Term Loan	3/1/2017	$	15,740		$	15,740		LIBOR + 1.60%		N/A	--
Term Loan	7/21/2019	146,000			—			LIBOR + 1.55%		N/A	--
Term Loan	2/28/2023	580,000			—			LIBOR + 1.40%	(8)	2.37%	3/1/2021
Total Debt(9) (10)		$	4,437,507		$	3,634,163
Deferred loan costs, net(11)		(35,656		)	(22,887		)
Total Debt, net		$	4,401,851		$	3,611,276

___________________________________________________

At September 30, 2016, the weighted average remaining life, including extension options, of our total consolidated term debt (excluding our revolving credit facility) was 4.5 years. For the $3.60 billion of term debt on which the interest rate was fixed under the terms of the loan or a swap, the weighted average (i) remaining life was 5.0 years, (ii) remaining period during which the interest rate was fixed was 3.1 years, (iii) annual interest rate was 3.24% and (iv) effective interest rate was 3.39% (including the non-cash amortization of deferred loan costs). Except as otherwise noted below, each loan (including our revolving credit facility) is secured by a one or more separate collateral pools consisting of one or more properties, requiring monthly payments of interest only, with the outstanding principal due upon maturity. Maturity dates include the effect of extension options.  The following table summarizes (in thousands) our fixed and floating rate debt:

Description	Principal Balance as of September 30, 2016		Principal Balance as of December 31, 2015
Aggregate swap fixed rate loans	$	2,465,480	$	2,492,360
Aggregate fixed rate loans	1,135,287		1,141,803
Aggregate floating rate loans	836,740		—
Total Debt	$	4,437,507	$	3,634,163

(1) Maturity dates include the effect of extension options.

(2) Includes the effect of interest rate swaps and excludes the effect of prepaid loan costs. See Note 9 for the details of our interest rate contracts.

(3) At September 30, 2016, these loans have been paid off.

(4) Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(5) Interest only until February 2017, with principal amortization thereafter based upon a 30-year amortization schedule.

(6) Interest rate is fixed until March 1, 2018. Requires monthly payments of principal and interest. Principal amortization is based upon a 30-year amortization schedule.

(7) $400.0 million revolving credit facility. Unused commitment fees range from 0.15% to 0.20%.

(8) Loan agreement includes a zero-percent LIBOR floor. The corresponding swaps do not include such a floor.

(9) See Note 12 for our fair value disclosures.

(10) At September 30, 2016, the minimum future principal payments due on our secured notes payable and revolving credit facility, excluding any maturity extension options, were as follows (in thousands):

Twelve months ending September 30:
2017	$	34,693
2018	1,224,890
2019	567,444
2020	325,000
2021	503,080
Thereafter	1,782,400
Total future principal payments	$	4,437,507

(11) Deferred loan costs are net of accumulated amortization of $17.6 million and $15.2 million at September 30, 2016 and December 31, 2015, respectively. The table below (in thousands) sets forth loan costs that were expensed and deferred loan costs which are amortized, both of which are included in Interest Expense in our consolidated statements of operations:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Loan costs expensed	$	—	$	396	$	818	$	396
Deferred loan cost amortization	2,227		1,162		5,470		5,136
Total	$	2,227	$	1,558	$	6,288	$	5,532

XML

Interest Payable, Accounts Payable and Deferred Revenue (Tables)

9 Months Ended

Sep. 30, 2016

Accounts Payable and Accrued Liabilities [Abstract]

Schedule Of Accounts Payable And Accrued Liabilities

Interest payable, accounts payable and deferred revenue consisted of the following (in thousands):

	September 30, 2016		December 31, 2015
Interest payable	$	10,195	$	10,028
Accounts payable and accrued liabilities	59,480		23,716
Deferred revenue	25,117		23,673
Total interest payable, accounts payable and deferred revenue	$	94,792	$	57,417

XML

Derivative Contracts (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Other Derivatives

As of September 30, 2016, all of our interest rate swaps, including our unconsolidated Funds' interest rate swaps, were designated as cash flow hedges:

	Number of Interest Rate Swaps	Notional (in thousands)(1)
Derivatives	18	$	2,465,480
Unconsolidated Funds' derivatives(2)	2	$	435,000

___________________________________________________

(1) See Note 12 for our derivative fair value disclosures.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Schedule of Derivative Liabilities at Fair Value

The fair value of our interest rate swaps in a liability position were as follows (in thousands):

Fair value of derivatives in a liability position(1)	September 30, 2016		December 31, 2015
Derivatives	$	30,567	$	19,047
Unconsolidated Funds' derivatives(2)	$	—	$	—

__________________________________________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Schedule of Derivative Assets at Fair Value

The fair value of our interest rate swaps in an asset position were as follows (in thousands):

Fair value of derivatives in an asset position(1)	September 30, 2016		December 31, 2015
Derivatives	$	—	$	4,220
Unconsolidated Funds' derivatives(2)	$	200	$	737

___________________________________________________

(1) Includes accrued interest and excludes any adjustment for nonperformance risk.

(2) The notional amount presented represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. See Note 5 for more information regarding our unconsolidated Funds.

Effect Of Derivative Instruments On Consolidated Statements Of Operations

The table below presents (in thousands) the effect of our derivative instruments, including our unconsolidated Funds' derivative instruments on our AOCI and statements of operations for the nine months ended September 30:

	2016			2015
Derivatives Designated as Cash Flow Hedges:
Loss recorded in AOCI (effective portion) - derivatives(1)(5)	$	(37,927	)	$	(21,975	)
Loss recorded in AOCI (effective portion) - unconsolidated Funds' derivatives(2)(5)	$	(814	)	$	(2,483	)
Loss reclassified from AOCI (effective portion) - derivatives(3)(5)	$	(21,361	)	$	(27,897	)
Loss reclassified from AOCI (effective portion) - unconsolidated Funds' derivatives(4)(5)	$	(311	)	$	(709	)
Gain (loss) recorded as interest expense (ineffective portion)(6)	$	—		$	—
Derivatives Not Designated as Cash Flow Hedges:
Gain (loss) recorded as interest expense(7)	$	—		$	—

___________________________________________________

(1) Represents the change in fair value of our interest rate swaps, designated as cash flow hedges, which does not impact the statement of operations.

(2) Represents our share of the change in fair value of our unconsolidated Funds' interest rate swaps designated as a cash flow hedges, which does not impact the statement of operations.

(3) Reclassified from AOCI as an increase to Interest expense.

(4) Reclassified from AOCI as a decrease to Income, including depreciation, from unconsolidated real estate funds (our share).

(5) See the reconciliation of our AOCI in Note 10.

(6) We did not record any ineffectiveness related to our derivatives designated as cash flow hedges.

(7) We do not have any derivatives that are not designated as cash flow hedges.

Schedule of Future Reclassifications from AOCI

At September 30, 2016, our estimate of the AOCI related to our derivatives and our unconsolidated Funds' derivatives, designated as cash flow hedges, that will be reclassified to earnings during the next twelve months, is presented in the table below (in thousands):

Derivatives(1)	$	16,448
Unconsolidated Funds' derivatives(2)	$	29

________________________________________

(1) Reclassified as an increase to interest expense.

(2) Reclassified as a decrease to income, including depreciation, from unconsolidated real estate funds (our share).

XML

Equity (Tables)

9 Months Ended

Sep. 30, 2016

Stockholders' Equity Note [Abstract]

Condensed Consolidated Statements Of Equity

The tables below present (in thousands) our condensed consolidated statements of equity:

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2016	$	1,926,211		$	355,337		$	2,281,548
Net income	65,696			7,928			73,624
Cash flow hedge fair value adjustments	(14,376		)	(2,693		)	(17,069		)
Contributions to consolidated joint venture	—			459,750			459,750
Sales of equity interests in consolidated joint ventures	—			291,029			291,029
Dividends and distributions	(98,501		)	(26,185		)	(124,686		)
Exchange of OP units for common stock	17,733			(17,733		)	—
Repurchase of OP units	(498		)	(328		)	(826		)
Exercise of stock options(1)	(53,467		)	—			(53,467		)
Stock-based compensation	—			7,759			7,759
Sale of common stock, net of offering costs	49,379			—			49,379
Balance as of September 30, 2016	$	1,892,177		$	1,074,864		$	2,967,041

__________________________________________________

(1) We issued shares of our common stock for the exercise of stock options on a net settlement basis (net of the exercise price and related taxes).

	Douglas Emmett, Inc. Stockholders' Equity			Noncontrolling Interests			Total Equity
Balance as of January 1, 2015	$	1,943,458		$	370,266		$	2,313,724
Net income	44,217			7,932			52,149
Cash flow hedge fair value adjustments	3,239			909			4,148
Dividends and distributions	(92,087		)	(17,549		)	(109,636		)
Exchange of OP units for common stock	18,101			(18,101		)	—
Issuance of OP units	—			1,000			1,000
Exercise of stock options	1,823			—			1,823
Stock-based compensation	—			6,603			6,603
Balance as of September 30, 2015	$	1,918,751		$	351,060		$	2,269,811

Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests

The table below presents (in thousands) the effect on our equity from net income attributable to common stockholders and changes in our ownership interest in our Operating Partnership:

	Nine Months Ended September 30,
	2016			2015
Net income attributable to common stockholders	$	65,696		$	44,217
Transfers (to) from noncontrolling interests:
Exchange of OP units with noncontrolling interests	17,733			18,101
Repurchase of OP units from noncontrolling interests	(498		)	—
Net transfers from noncontrolling interests	$	17,235		$	18,101
Change from net income attributable to common stockholders and transfers from noncontrolling interests	$	82,931		$	62,318

Schedule of Accumulated Other Comprehensive Income (Loss)

The table below presents (in thousands) a reconciliation of our AOCI, which consists solely of adjustments related to derivatives designated as cash flow hedges for the nine months ended September 30:

	2016			2015
Beginning balance	$	(9,285	)	$	(30,089	)
Other comprehensive loss before reclassifications - derivatives	(37,927		)	(21,975		)
Other comprehensive loss before reclassifications - unconsolidated Funds' derivatives	(814		)	(2,483		)
Reclassifications from AOCI - derivatives(2)	21,361			27,897
Reclassifications from AOCI - unconsolidated Funds' derivatives(3)	311			709
Net current period OCI	(17,069		)	4,148
Less OCI attributable to noncontrolling interests	2,693			(909		)
OCI attributable to common stockholders	(14,376		)	3,239
Ending balance	$	(23,661	)	$	(26,850	)

___________________________________________________

(1) See Note 9 for the details of our derivatives and Note 12 for our derivative fair value disclosures.

(2) Reclassification as an increase to interest expense.

(3) Reclassification as a decrease to income, including depreciation, from unconsolidated real estate funds.

XML

EPS (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The table below presents the calculation of basic and diluted EPS:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Numerator (in thousands):
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217
Allocation to participating securities: Unvested LTIP units	(180		)	(59		)	(365		)	(224		)
Numerator for the calculation of basic and diluted EPS	$	31,668		$	12,011		$	65,331		$	43,993
Denominator (in thousands):
Weighted average shares of common stock outstanding - basic	150,753			146,331			148,578			145,856
Effect of dilutive securities: Stock options(1)	2,666			4,409			4,241			4,429
Weighted average shares of common stock and common stock equivalents outstanding - diluted	153,419			150,740			152,819			150,285
Basic EPS:
Net income attributable to common stockholders per share	$	0.210		$	0.082		$	0.440		$	0.302
Diluted EPS:
Net income attributable to common stockholders per share	$	0.206		$	0.080		$	0.428		$	0.293

____________________________________________________

(1) The following securities were excluded from the computation of the weighted average diluted shares because the effect of including them would be anti-dilutive to the calculation of diluted EPS:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2016	2015	2016	2015
OP Units	24,788	26,307	25,148	26,520
Vested LTIP Units	675	8	766	235
Unvested LTIP units	783	647	679	576

XML

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Schedule of Estimated Fair Value of Secured Notes Payable

The table below presents (in thousands) the estimated fair value of our secured notes payable:

Secured Notes Payable:	September 30, 2016		December 31, 2015
Fair value	$	4,482,073	$	3,691,075
Carrying value	$	4,437,507	$	3,634,163

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The table below presents (in thousands) the estimated fair value of our derivatives:

	September 30, 2016		December 31, 2015
Derivative Assets:
Fair value - derivatives(1)	$	—	$	4,830
Fair value - unconsolidated Funds' derivatives(2)	$	221	$	837
Derivative Liabilities:
Fair value - derivatives(1)	$	28,046	$	16,310
Fair value - unconsolidated Funds' derivatives(2)	$	—	$	—

____________________________________________________

(1) Our derivatives are included in interest rate contracts in our consolidated balance sheet. The fair value excludes accrued interest (which is included in interest payable in the consolidated balance sheet).

(2) Represents 100%, not our pro-rata share, of the amounts related to our unconsolidated Funds. Our pro-rata share of the amounts related to the unconsolidated Funds' derivatives is included in our Investment in unconsolidated real estate funds in our consolidated balance sheet. See Note 5 for more information regarding our unconsolidated Funds.

XML

Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Operating Activity Within Reportable Segments

The table below presents (in thousands) the operating activity of our reportable segments:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Office Segment
Total office revenues	$	167,608		$	136,225		$	475,083		$	404,472
Office expenses	(56,926		)	(49,195		)	(158,190		)	(139,936		)
Office Segment profit	110,682			87,030			316,893			264,536
Multifamily Segment
Total multifamily revenues	24,513			23,852			72,825			70,871
Multifamily expenses	(5,950		)	(6,191		)	(17,322		)	(17,941		)
Multifamily Segment profit	18,563			17,661			55,503			52,930
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466

Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders

The table below (in thousands) is a reconciliation of the total profit from all segments to net income attributable to common stockholders:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Total profit from all segments	$	129,245		$	104,691		$	372,396		$	317,466
General and administrative	(8,099		)	(6,867		)	(25,573		)	(21,701		)
Depreciation and amortization	(63,827		)	(52,229		)	(181,947		)	(153,309		)
Other income	2,295			2,129			6,527			13,103
Other expenses	(1,728		)	(1,605		)	(4,963		)	(4,796		)
Income, including depreciation, from unconsolidated real estate funds	2,334			898			5,564			3,548
Interest expense	(36,479		)	(32,705		)	(109,842		)	(101,521		)
Acquisition-related expenses	(1,188		)	(153		)	(2,865		)	(641		)
Income before gains	22,553			14,159			59,297			52,149
Gains on sales of investments in real estate	13,245			—			14,327			—
Net income	35,798			14,159			73,624			52,149
Less: Net income attributable to noncontrolling interests	(3,950		)	(2,089		)	(7,928		)	(7,932		)
Net income attributable to common stockholders	$	31,848		$	12,070		$	65,696		$	44,217

XML

Future Minimum Lease Rental Receipts (Tables)

9 Months Ended

Sep. 30, 2016

Operating Leases, Future Minimum Payments Receivable [Abstract]

Schedule Of Future Minimum Base Rentals On Non-Cancelable Office And Ground Operating Leases

The table below presents (in thousands) the future minimum base rentals on our non-cancelable office tenant and ground operating leases at September 30, 2016:

Twelve months ending September 30:
2017	$	484,558
2018	426,338
2019	360,404
2020	301,221
2021	230,358
Thereafter	616,925
Total future minimum base rentals(1)	$	2,419,804

_____________________________________________________

(1) Does not include (i) residential leases, which typically have a term of one year or less, (ii) tenant reimbursements, (iii) straight line rent, (iv) amortization/accretion of acquired above/below-market lease intangibles and (v) percentage rents.  The amounts assume that early termination options held by tenants are not exercised.

XML

Future Minimum Lease Rental Payments (Tables)

9 Months Ended

Sep. 30, 2016

Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]

Future Minimum Ground Lease Payments

The table below presents (in thousands) the future minimum ground lease payments as of September 30, 2016:

Twelve months ending September 30:
2017	$	733
2018	733
2019	733
2020	733
2021	733
Thereafter	47,827
Total future minimum lease payments(1)	$	51,492

___________________________________________________

(1) Lease term ends on December 31, 2086. Ground rent is fixed at $733 thousand per year until February 28, 2019, and will then be reset to the greater of the existing ground rent or market. The table above assumes that the rental payments will continue to be $733 thousand per year after February 28, 2019.

XML

Commitments, Contingencies and Guarantees Commitments, Contingencies and Guarantees (Tables)

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of Debt Related to Unconsolidated Funds

The table below summarizes the debt of our Funds as of September 30, 2016, the amounts represent 100% (not our pro-rata share) of amounts related to our Funds:

Fund(1)	Principal Balance(1) (in millions)		Loan Maturity Date	Variable Interest Rate	Swap Maturity Date	Swap Fixed Interest Rate
Fund X(2)	$	325.0	5/1/2018	LIBOR + 1.75%	5/1/2017	2.35%
Partnership X(3)	110.0		3/1/2023	LIBOR + 1.40%	3/1/2021	2.30%
	$	435.0

___________________________________________________

(1) See Note 5 for more information regarding our unconsolidated Funds.

(2) Floating rate term loan, swapped to fixed, which is secured by six properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $1.2 million.

(3) Floating rate term loan, swapped to fixed, which is secured by two properties and requires monthly payments of interest only, with the outstanding principal due upon maturity. As of September 30, 2016, assuming a zero-percent LIBOR interest rate during the remaining life of the swap, the maximum future payments under the swap agreement were $4.4 million.

XML

Overview (Details) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($) land_parcel office_property entity multifamily_unit
Overview [Line Items]
Number of office properties owned | office_property	67
Number of variable interest entities included in consolidated financial statements | entity	2
Variable interest entity, assets	$ 1,810.0
Variable interest entity, assets related to real estate held for investment	1,730.0
Variable interest entity, liabilities	790.7
Variable interest entity, equity	1,020.0
Variable interest entity, equity, portion attributable to noncontrolling interest	$ 738.8
Wholly Owned Consolidated Properties [Member]
Overview [Line Items]
Number of office properties owned | office_property	59
Number of multifamily properties owned | multifamily_unit	10
Number of land parcels | land_parcel	2
Consolidated Joint Venture Properties [Member]
Overview [Line Items]
Number of office properties owned | office_property	7
Partially Owned Properties [Member]
Overview [Line Items]
Number of office properties owned | office_property	8

XML

Investment in Real Estate - Narrative (Details) $ in Thousands							3 Months Ended		9 Months Ended
	Sep. 27, 2016 USD ($)	Jul. 21, 2016 USD ($)	May 31, 2016 USD ($)	Feb. 29, 2016 USD ($) ft² property	Mar. 05, 2015 USD ($)	Feb. 12, 2015 USD ($)	Sep. 30, 2016 USD ($) ft² office_property property	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) ft² office_property property	Sep. 30, 2015 USD ($) property	Dec. 31, 2015 USD ($)
Real Estate Acquisition [Line Items]
Number of office properties acquired | office_property							67		67
Gain on sale of investment in real estate							$ 13,245	$ 0	$ 14,327	$ 0
Number of acquisitions | property										2
Net accretion of acquired lease intangibles							5,102	2,867	13,415	$ 15,806
Total Debt							$ 4,437,507		$ 4,437,507		$ 3,634,163
Harbor Court Land [Member]
Real Estate Acquisition [Line Items]
Price of real estate acquired						$ 27,500
Office Building [Member] | Sherman Oaks [Member]
Real Estate Acquisition [Line Items]
Area of real estate property | ft²							168,000		168,000
Carrying value of real estate held for sale							$ 42,800		$ 42,800
Contract price							56,700
Transaction costs							1,200
Above Market Ground Leases [Member] | Other Income [Member]
Real Estate Acquisition [Line Items]
Net accretion of acquired lease intangibles							$ 0	$ 0	0	$ 6,600
Joint Venture [Member]
Real Estate Acquisition [Line Items]
Percentage of joint venture sold	35.00%
Proceeds from sale of interest in joint venture									51,600
Consideration included in proceeds from sale									$ 194
Gain on sale of investment in real estate	$ 587
Ownership percentage	20.00%	55.00%
Joint Venture [Member] | 12100 Wilshire [Member]
Real Estate Acquisition [Line Items]
Contract price		$ 225,000
Joint Venture [Member] | 233 Wilshire [Member]
Real Estate Acquisition [Line Items]
Contract price	$ 139,500
Joint Venture [Member] | Office Building [Member]
Real Estate Acquisition [Line Items]
Number of office properties acquired | property							2		2
Westwood Portfolio [Member]
Real Estate Acquisition [Line Items]
Net income excluding transaction costs				$ 3,500
Ownership interest							30.00%		30.00%
Westwood Portfolio [Member] | Joint Venture [Member]
Real Estate Acquisition [Line Items]
Consideration transferred, excluding credits received				$ 1,340,000
Percentage of equity contributed in joint venture			30.00%	60.00%
Proceeds from sale of interest in joint venture			$ 240,000
Gain on sale of investment in real estate							$ 1,100
Area of real estate property | ft²				1,725,000			1,725,000		1,725,000
Contract price				$ 1,332,513			$ 1,332,513
Price of real estate acquired				$ 153,745			153,745
Westwood Portfolio [Member] | Joint Venture [Member] | Office Building [Member]
Real Estate Acquisition [Line Items]
Number of office properties acquired | property				4
First Financial Plaza [Member]
Real Estate Acquisition [Line Items]
Price of real estate acquired					$ 92,400
Discontinued Operations, Held-for-sale [Member] | Office Building [Member] | Sherman Oaks [Member]
Real Estate Acquisition [Line Items]
Gain on sale of investment in real estate							$ 12,700
Investor [Member] | Joint Venture [Member]
Real Estate Acquisition [Line Items]
Contribution to joint venture	$ 139,800
Ownership percentage									80.00%
Investor [Member] | Westwood Portfolio [Member] | Joint Venture [Member]
Real Estate Acquisition [Line Items]
Contribution to joint venture									$ 320,000
Ownership percentage									40.00%

XML

Investment in Real Estate - Summary of Preliminary Purchase Accounting and Funding Sources for the Acquisition (Details) ft² in Thousands, $ in Thousands				3 Months Ended		9 Months Ended
	Sep. 27, 2016 USD ($)	May 31, 2016 USD ($)	Feb. 29, 2016 USD ($) ft²	Sep. 30, 2016 USD ($) ft²	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) ft²	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Source of funds:
Credit facility				$ 4,437,507		$ 4,437,507		$ 3,634,163
Long-term debt				4,401,851		4,401,851		3,611,276
Gain on sale of investment in real estate				13,245	$ 0	14,327	$ 0
Deposits in escrow				0		$ 0		75,000
Percentage of loan			100.00%
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member]
Source of funds:
Basis spread						1.40%
Westwood Portfolio [Member] | Other Assets [Member]
Source of funds:
Deposits in escrow								75,000
Joint Venture [Member]
Source of funds:
Proceeds from sale of interest in joint venture						$ 51,600
Gain on sale of investment in real estate	$ 587
Joint Venture [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member]
Source of funds:
Credit facility				$ 580,000		580,000		$ 0
Loan costs						$ 11,200
Debt instrument, term						7 years
Fixed Interest Rate				2.37%		2.37%
Fixed interest rate, term						5 years
Joint Venture [Member] | Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member]
Source of funds:
Basis spread						1.40%
Joint Venture [Member] | Westwood Portfolio [Member]
Business Acquisition [Line Items]
Building square footage | ft²			1,725	1,725		1,725
Uses of funds - Investment in real estate:
Land			$ 95,130	$ 95,127		$ 95,127
Buildings and improvements			1,238,215	1,238,162		1,238,162
Tenant improvements and lease intangibles			50,499	50,497		50,497
Acquired above and below-market leases, net(3)			(51,331)	(51,273)		(51,273)
Net assets and liabilities acquired			1,332,513	1,332,513		1,332,513
Source of funds:
Cash on hand			153,745	153,745
Noncontrolling interests			320,000	560,000
Total source of funds			$ 1,332,513	1,332,513
Percentage of equity contributed in joint venture		30.00%	60.00%
Noncontrolling interest, ownership percentage by parent		30.00%
Proceeds from sale of interest in joint venture		$ 240,000
Additional proceeds for compensation of costs		$ 1,100
Gain on sale of investment in real estate				1,100
Weighted average useful live of above and below market leases			4 years 5 months
Cash paid at closing			$ 67,500
Joint Venture [Member] | Westwood Portfolio [Member] | Scenario, Adjustment [Member]
Source of funds:
Noncontrolling interests			240,000
Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member]
Source of funds:
Credit facility			290,000	50,000		50,000
Joint Venture [Member] | Westwood Portfolio [Member] | Line of Credit [Member] | Scenario, Adjustment [Member]
Source of funds:
Credit facility			(240,000)
Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member]
Source of funds:
Long-term debt			$ 568,768	$ 568,768		$ 568,768
Joint Venture [Member] | Westwood Portfolio [Member] | Secured Debt [Member] | LIBOR [Member]
Source of funds:
Basis spread						1.40%

XML

Investment in Real Estate - Revenue and Net Income Attributable to Common Stockholders from Westwood Portfolio (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Feb. 29, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Total office revenues		$ 167,608	$ 136,225	$ 475,083	$ 404,472
Net income attributable to common stockholders(1)		$ 31,848	$ 12,070	$ 65,696	$ 44,217
Westwood Portfolio [Member]
Business Acquisition [Line Items]
Total office revenues	$ 56,045
Net income attributable to common stockholders(1)	$ 1,444

XML

Investment in Real Estate - Pro Forma Results (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Net accretion of acquired lease intangibles	$ 5,102	$ 2,867	$ 13,415	$ 15,806
Westwood Portfolio [Member]
Business Acquisition [Line Items]
Pro forma revenues			561,235	544,518
Pro forma net income attributable to common stockholders			$ 64,623	$ 46,203
Pro forma net income attributable to common stockholders per share – basic (in dollars per share)			$ 0.00433	$ 0.00315
Pro forma net income attributable to common stockholders per share – diluted (in dollars per share)			$ 0.00421	$ 0.00306

XML

Investment in Real Estate - Summary of Purchase Price Allocations for the Acquisitions (Details) ft² in Thousands, $ in Thousands	Sep. 27, 2016 USD ($) ft²	Jul. 21, 2016 USD ($) ft²	Mar. 05, 2015 USD ($) ft²	Feb. 12, 2015 USD ($)
233 Wilshire [Member]
Business Acquisition [Line Items]
Area of real estate property | ft²	129
Land	$ 12,503
Buildings and improvements	124,258
Tenant improvements and lease intangibles	3,802
Acquired above and below-market leases, net(3)	(2,712)
Net assets and liabilities acquired	$ 137,851
12100 Wilshire [Member]
Business Acquisition [Line Items]
Area of real estate property | ft²		365
Land		$ 20,154
Buildings and improvements		199,601
Tenant improvements and lease intangibles		9,053
Acquired above and below-market leases, net(3)		(4,412)
Net assets and liabilities acquired		$ 224,396
Harbor Court Land [Member]
Business Acquisition [Line Items]
Land				$ 12,060
Buildings and improvements				15,440
Tenant improvements and lease intangibles				0
Acquired above and below-market leases, net(3)				0
Net assets and liabilities acquired				$ 27,500
First Financial Plaza [Member]
Business Acquisition [Line Items]
Area of real estate property | ft²			227
Land			$ 12,092
Buildings and improvements			75,039
Tenant improvements and lease intangibles			6,065
Acquired above and below-market leases, net(3)			(790)
Net assets and liabilities acquired			$ 92,406

XML

Acquired Lease Intangibles - Summary Of Acquired Lease Intangibles (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
Acquired lease intangible assets, net	$ 4,990		$ 4,990		$ 4,484
Acquired lease intangible liabilities, net	74,151		74,151		28,605
Amortization/accretion of above/below-market leases	5,102	$ 2,867	13,415	$ 15,806
Tenant Lease [Member] | Operating Lease Revenue [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	5,093	2,858	13,390	9,181
Above Market Tenant Leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, assets	4,705		4,705		4,661
Accumulated amortization	(2,150)		(2,150)		(2,670)
Below Market Tenant Leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, liabilities	151,925		151,925		103,327
Accumulated accretion	(81,294)		(81,294)		(78,280)
Below Market Ground Leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, assets	3,198		3,198		3,198
Accumulated amortization	(763)		(763)		(705)
Above Market Ground Leases [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Off-market lease, liabilities	4,017		4,017		4,017
Accumulated accretion	(497)		(497)		$ (459)
Above Market Ground Leases [Member] | Office Parking and Other Income [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	(4)	(4)	(13)	(13)
Above Market Ground Leases [Member] | Office Expense [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	13	13	38	38
Above Market Ground Leases [Member] | Other Income [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Amortization/accretion of above/below-market leases	$ 0	$ 0	$ 0	$ 6,600

XML

Acquired Lease Intangibles Future Net Accretion (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Finite-Lived Intangible Assets [Line Items]
Net accretion revenue, next twelve months	$ 16,319
Net accretion revenue, year two	13,802
Net accretion revenue, year three	12,410
Net accretion revenue, year four	9,719
Net accretion revenue, year five	6,096
Net accretion revenue, thereafter	10,815
Net accretion revenue, total	69,161
Sales Revenue, Net [Member]
Finite-Lived Intangible Assets [Line Items]
Net accretion revenue, next twelve months	16,269
Net accretion revenue, year two	13,752
Net accretion revenue, year three	12,360
Net accretion revenue, year four	9,669
Net accretion revenue, year five	6,046
Net accretion revenue, thereafter	7,545
Net accretion revenue, total	65,641
Operating Expense [Member]
Finite-Lived Intangible Assets [Line Items]
Net accretion revenue, next twelve months	50
Net accretion revenue, year two	50
Net accretion revenue, year three	50
Net accretion revenue, year four	50
Net accretion revenue, year five	50
Net accretion revenue, thereafter	3,270
Net accretion revenue, total	$ 3,520

XML

Investments In Unconsolidated Real Estate Funds - Narrative (Details) ft² in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2016 ft² office_property Number_of_funds_managed	Dec. 31, 2015 USD ($)	Nov. 30, 2015 USD ($)	Apr. 30, 2013 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of office properties owned | office_property	67
Percentage of amounts related to the Fund	100.00%
Fund X [Member]
Schedule of Equity Method Investments [Line Items]
Due from related parties | $		$ 0.3		$ 2.9
Fund X [Member] | LIBOR [Member]
Schedule of Equity Method Investments [Line Items]
Basis spread	2.50%
Partnership X [Member]
Schedule of Equity Method Investments [Line Items]
Due from related parties | $		$ 0.5	$ 0.5
Partnership X [Member] | LIBOR [Member]
Schedule of Equity Method Investments [Line Items]
Variable rate	LIBOR plus 2.5%
Basis spread	2.50%
Fund X [Member]
Schedule of Equity Method Investments [Line Items]
Equity interest of the Fund, percent	68.61%
Partnership X [Member]
Schedule of Equity Method Investments [Line Items]
Equity interest of the Fund, percent	24.25%
Partially Owned Properties [Member]
Schedule of Equity Method Investments [Line Items]
Number of office properties owned | office_property	8
Partially Owned Properties [Member]
Schedule of Equity Method Investments [Line Items]
Number of real estate funds owned and managed | Number_of_funds_managed	2
Building square footage | ft²	1.8

XML

Investments In Unconsolidated Real Estate Funds - Summary of Cash Distributions Received from Funds (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Real Estate Investments, Net [Abstract]
Operating distributions received from our Funds	$ 1,356	$ 762
Capital distributions received from our Funds	21,973	5,711
Total distributions received	$ 23,329	$ 6,473

XML

Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Financial Position For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate Investments, Net [Abstract]
Total assets	$ 691,473	$ 691,543
Total liabilities	449,842	389,372
Total equity	$ 241,631	$ 302,171

XML

Investments In Unconsolidated Real Estate Funds - Summary Of Statement Of Operations For Investments In Unconsolidated Real Estate Funds (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Real Estate Investments, Net [Abstract]
Total revenues	$ 54,104	$ 52,500
Operating income	14,284	10,072
Net income	$ 5,847	$ 1,431

XML

Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Assets [Abstract]
Restricted cash	$ 187	$ 194
Prepaid expenses	11,343	6,720
Other indefinite-lived intangible	1,988	1,988
Deposits in escrow	0	75,000
Furniture, fixtures and equipment, net	1,199	1,448
Other	2,851	2,370
Total other assets	$ 17,568	$ 87,720

XML

Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Secured Notes Payable and Revolving Credit Facility (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total Debt	$ 4,437,507,000	$ 3,634,163,000
Deferred loan costs, net	(35,656,000)	(22,887,000)
Total Debt, Net	$ 4,401,851,000	3,611,276,000
Weighted average remaining life of outstanding term debt (in years)	4 years 6 months
Debt at fixed interest rate	$ 3,600,000,000
Weighted average remaining life of interest rate swaps and fixed rate debt (in years)	5 years
Weighted average annual interest rate (as a percent)	3.24%
Weighted average effective interest rate, including non-cash amortization of deferred loan costs (as a percent)	3.39%
Accumulated amortization	$ 17,600,000	15,200,000
Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Total Debt	$ 3,695,767,000	3,618,423,000
Term Loan With Effective Annual Fixed Interest Rate At Four Point Zero Zero Percentage [Member]
Debt Instrument [Line Items]
Fixed rate debt amortization period (in years)	30 years
Long term Fixed Rate Debt with effective interest rate of 385 bps [Member]
Debt Instrument [Line Items]
Fixed rate debt amortization period (in years)	30 years
Debt instrument period of monthly interest-only payments end date	Feb. 05, 2017
Term Loan With Effective Annual Fixed Interest Rate At Four Point Four Six Percentage [Member]
Debt Instrument [Line Items]
Fixed rate debt amortization period (in years)	30 years
Debt instrument period of fixed interest end date	Mar. 01, 2018
Revolving Credit Facility With Maturity Date 8/21/20 [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 400,000,000.0
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Unused commitment fees (as a percent)	0.15%
Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Unused commitment fees (as a percent)	0.20%
Effective Fixed Rate Loans [Member]
Debt Instrument [Line Items]
Total Debt	$ 2,465,480,000	2,492,360,000
Aggregate Fixed Rate Loans [Member]
Debt Instrument [Line Items]
Total Debt	$ 1,135,287,000	1,141,803,000
Weighted average remaining period during which interest was fixed (in years)	3 years 1 month
Variable Rate Loans [Member]
Debt Instrument [Line Items]
Total Debt	$ 836,740,000	0
Secured Debt [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Dec. 24, 2016
Total Debt	$ 0	20,000,000
Variable Interest Rate	LIBOR + 1.45%
Secured Debt [Member] | Term Loan, Maturity Date December 24, 2016 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.45%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Percentage [Member] [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Feb. 28, 2018
Total Debt	$ 1,000,000	0
Fixed Interest Rate	3.00%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Apr. 02, 2018
Total Debt	$ 0	256,140,000
Variable Interest Rate	LIBOR + 2.00%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Two Percentage [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	2.00%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Aug. 01, 2018
Total Debt	$ 530,000,000	530,000,000
Variable Interest Rate	LIBOR + 1.70%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Seven Four Percentage [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.70%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point One Four Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Aug. 05, 2018
Total Debt	$ 351,472,000	355,000,000
Fixed Interest Rate	4.14%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Zero Zero Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Feb. 01, 2019
Total Debt	$ 150,627,000	152,733,000
Fixed Interest Rate	4.00%
Secured Debt [Member] | Long term Fixed Rate Debt with effective interest rate of 385 bps [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Jun. 05, 2019
Total Debt	$ 285,000,000	285,000,000
Fixed Interest Rate	3.85%
Secured Debt [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Oct. 01, 2019
Total Debt	$ 145,000,000	145,000,000
Variable Interest Rate	LIBOR + 1.25%
Secured Debt [Member] | Fannie Mae Loans, Maturity Date October 1, 2019 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.25%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Four Point Four Six Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Mar. 01, 2020
Total Debt	$ 347,188,000	349,070,000
Fixed Interest Rate	4.46%
Secured Debt [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Nov. 02, 2020
Total Debt	$ 388,080,000	388,080,000
Variable Interest Rate	LIBOR + 1.65%
Fixed Interest Rate	3.65%
Swap Maturity Date	Nov. 01, 2017
Secured Debt [Member] | Entity One Rate Six With Effective Annual Fixed Interest Rate At Three Point Six Five Percentage [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.65%
Secured Debt [Member] | Term Loan With Maturity Date Of 04152022 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Apr. 15, 2022
Total Debt	$ 340,000,000	340,000,000
Variable Interest Rate	LIBOR + 1.40%
Fixed Interest Rate	2.77%
Swap Maturity Date	Apr. 01, 2020
Secured Debt [Member] | Term Loan With Maturity Date Of 04152022 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.40%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Jul. 27, 2022
Total Debt	$ 180,000,000	180,000,000
Variable Interest Rate	LIBOR + 1.45%
Fixed Interest Rate	3.06%
Swap Maturity Date	Jul. 01, 2020
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Three Point Zero Six Percentage [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.45%
Secured Debt [Member] | Term Loan, Fixed Interest rate of 2.64% [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Nov. 02, 2022
Total Debt	$ 400,000,000	400,000,000
Variable Interest Rate	LIBOR + 1.35%
Fixed Interest Rate	2.64%
Swap Maturity Date	Nov. 01, 2020
Secured Debt [Member] | Term Loan, Fixed Interest rate of 2.64% [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.35%
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Two Point Five Seven Percentage [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Jun. 23, 2023
Total Debt	$ 360,000,000	0
Variable Interest Rate	LIBOR + 1.55%
Fixed Interest Rate	2.57%
Swap Maturity Date	Jul. 01, 2021
Secured Debt [Member] | Term Loan With Effective Annual Fixed Interest Rate At Two Point Five Seven Percentage [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.55%
Secured Debt [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Apr. 01, 2025
Total Debt	$ 102,400,000	102,400,000
Variable Interest Rate	LIBOR + 1.25%
Fixed Interest Rate	2.84%
Swap Maturity Date	Mar. 01, 2020
Secured Debt [Member] | Fannie Mae Loan With Maturity Date Of April 1, 2025 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.25%
Secured Debt [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Dec. 01, 2025
Total Debt	$ 115,000,000	115,000,000
Variable Interest Rate	LIBOR + 1.25%
Fixed Interest Rate	2.76%
Swap Maturity Date	Dec. 01, 2020
Secured Debt [Member] | Fannie Mae Loan with Maturity Date of December 1, 2020 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.25%
Secured Debt [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Maturity Date	Mar. 01, 2017
Total Debt	$ 15,740,000	15,740,000
Variable Interest Rate	LIBOR + 1.60%
Secured Debt [Member] | Term Loan With Maturity Date 3/1/2017 [Member] | LIBOR [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Basis spread	1.60%
Secured Debt [Member] | Term Loan With Maturity Date 7/21/2019 [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Maturity Date	Jul. 21, 2019
Total Debt	$ 146,000,000
Variable Interest Rate	LIBOR + 1.55%
Secured Debt [Member] | Term Loan With Maturity Date 7/21/2019 [Member] | LIBOR [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Basis spread	1.55%
Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Maturity Date	Feb. 28, 2023
Total Debt	$ 580,000,000	0
Variable Interest Rate	LIBOR + 1.40%
Fixed Interest Rate	2.37%
Swap Maturity Date	Mar. 01, 2021
Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member] | Consolidated Joint Ventures [Member]
Debt Instrument [Line Items]
Basis spread	1.40%
Secured Debt [Member] | Term Loan with Maturity Date of February 28, 2023 [Member] | LIBOR [Member] | Consolidated Joint Ventures [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread	0.00%
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Maturity Date	Aug. 21, 2020
Total Debt	$ 0	$ 0
Variable Interest Rate	LIBOR + 1.40%
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Basis spread	1.40%
Line of Credit [Member] | Revolving Credit Facility With Maturity Date 8/21/20 [Member] | LIBOR [Member] | Wholly Owned Subsidiaries [Member]
Debt Instrument [Line Items]
Basis spread	1.40%

XML

Secured Notes Payable and Revolving Credit Facility, net - Schedule Of Minimum Future Principal Payments Due On Secured Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Secured Debt [Abstract]
2017	$ 34,693
2018	1,224,890
2019	567,444
2020	325,000
2021	503,080
Thereafter	1,782,400
Total future principal payments	$ 4,437,507	$ 3,634,163

XML

Secured Notes Payable and Revolving Credit Facility, net Schedule of Loan Costs and Deferred Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Deferred loan cost amortization			$ 5,470	$ 5,136
Interest Expense [Member]
Debt Instrument [Line Items]
Loan costs expensed	$ 0	$ 396	818	396
Deferred loan cost amortization	2,227	1,162	5,470	5,136
Total	$ 2,227	$ 1,558	$ 6,288	$ 5,532

XML

Interest Payable, Accounts Payable and Deferred Revenue (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Accounts Payable and Accrued Liabilities [Abstract]
Interest payable	$ 10,195	$ 10,028
Accounts payable and accrued liabilities	59,480	23,716
Deferred revenue	25,117	23,673
Total interest payable, accounts payable and deferred revenue	$ 94,792	$ 57,417

XML

Derivative Contracts - Summary of Derivatives (Details) - Derivatives Designated as Cash Flow Hedges [Member] - Cash Flow Hedging [Member] - Interest Rate Swap [Member] $ in Thousands	Sep. 30, 2016 USD ($) instrument
Derivative [Line Items]
Number of Instruments | instrument	18
Notional | $	$ 2,465,480
Fund X [Member]
Derivative [Line Items]
Number of Instruments | instrument	2
Notional | $	$ 435,000
Percent of notional amount related to the Fund	100.00%

XML

Derivative Contracts - Credit-risk-related Contingent Features (Details) - Cash Flow Hedging [Member] - Derivatives Designated as Cash Flow Hedges [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Fair value derivatives in a liability position	$ 30,567	$ 19,047
Fund X [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value derivatives in a liability position	$ 0	$ 0
Percent of notional amount related to the Fund	100.00%

XML

Derivative Contracts - Counterparty Credit Risk (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	$ 0	$ 4,830
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	0	4,220
Interest Rate Swap [Member] | Derivatives Designated as Cash Flow Hedges [Member] | Cash Flow Hedging [Member] | Fund X [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Fair value of derivatives in an asset position	$ 200	$ 737
Percent of notional amount related to the Fund	100.00%

XML

Derivative Contracts - Impact of Hedges on AOCI and Statements of Operations (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Derivatives Designated as Cash Flow Hedges [Member]
Derivative [Line Items]
Loss recorded in AOCI (effective portion)	$ (37,927)	$ (21,975)
Loss reclassified from AOCI (effective portion)	(21,361)	(27,897)
Derivatives Designated as Cash Flow Hedges [Member] | Interest Expense [Member]
Derivative [Line Items]
Gain (loss) recorded as interest expense (ineffective portion)	0	0
Derivatives Designated as Cash Flow Hedges [Member] | Fund X [Member]
Derivative [Line Items]
Loss recorded in AOCI (effective portion)	(814)	(2,483)
Loss reclassified from AOCI (effective portion)	(311)	(709)
Derivatives Not Designated as Cash Flow Hedges [Member] | Interest Expense [Member]
Derivative [Line Items]
Gain (loss) recorded as interest expense	$ 0	$ 0

XML

Derivative Contracts - Future Reclassifications from AOCI (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as cash flow hedge to be reclassified	$ 16,448
Fund X [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative designated as cash flow hedge to be reclassified	$ 29

XML

Equity - Narrative (Details) $ / shares in Units, $ in Thousands			3 Months Ended	9 Months Ended
	Sep. 27, 2016 USD ($)	Jul. 21, 2016	Sep. 30, 2016 USD ($) office_property shares	Sep. 30, 2016 USD ($) office_property $ / shares shares	Sep. 30, 2015 USD ($) $ / shares shares	Dec. 31, 2015 shares
Schedule of Equity Method Investments [Line Items]
Number of operating partnership units converted to shares of common stock | shares				1,349,000	1,400,000
Partners capital account, units redeemed | shares				25,000
Repurchase of OP units				$ 826
Average purchase price of options (usd per share) | $ / shares				$ 33.05
Shares issued (shares) | shares				1,500,000	136,000
Number of stock options exercised (shares) | shares				7,600,000
Number of shares sold (shares) | shares				1,400,000
Consideration received on sale of stock				$ 49,400
Purchase price of stock options					$ 1,800
Exercises in period, average price (usd per share) | $ / shares					$ 13.44
OP Units issued | shares					34,000
Issuance of OP Units in exchange for land and building acquired				$ 0	$ 1,000
Number of office buildings | office_property			1	1
Common stock, shares outstanding (in shares) | shares			151,126,112	151,126,112		146,919,187
Number of OP units and fully-vested LTIP units outstanding | shares				25,300,000
Number of shares of common stock issued upon redemption of one OP unit (shares) | shares				1
Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture	20.00%	55.00%
Joint Venture [Member] | Investor [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture				80.00%
Contribution to joint venture	$ 139,800
Partnership Interest [Member]
Schedule of Equity Method Investments [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners			14.00%	14.00%
Westwood Portfolio [Member] | Joint Venture [Member] | Investor [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage of capital interest in joint venture				70.00%
Ownership interest in joint venture				40.00%
Contribution to joint venture				$ 320,000
Proceeds from sale of investments				241,100
Income from equity method investment				$ 1,100
Third Quarter Acquisitions [Member] | Joint Venture [Member] | Investor [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage of capital interest in joint venture			80.00%
Contribution to joint venture			$ 139,800
Proceeds from sale of investments			51,600
Income from equity method investment			$ 587
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Westwood Portfolio [Member] | Joint Venture [Member] | Investor [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture				30.00%
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Third Quarter Acquisitions [Member] | Joint Venture [Member] | Investor [Member]
Schedule of Equity Method Investments [Line Items]
Ownership interest in joint venture			35.00%

XML

Equity - Condensed Consolidated Statements Of Equity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance			$ 1,926,211
Noncontrolling Interests, Beginning Balance			355,337
Total Equity, Beginning Balance			2,281,548	$ 2,313,724
Net income attributable to common stockholders	$ 31,848	$ 12,070	65,696	44,217
Noncontrolling Interests, Net Income	3,950	2,089	7,928	7,932
Net income	35,798	14,159	73,624	52,149
Cash flow hedge fair value adjustment, total equity	18,429	(8,237)	(17,069)	4,148
Contributions to consolidated joint venture			459,750
Sale of equity interest in consolidated joint venture			291,029
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity			(98,501)	(92,087)
Dividends and distributions, total equity			(124,686)	(109,636)
Common stock issued in exchange for OP Units			0	0
Repurchase of OP units			(826)
Issuance of OP units for cash			0	1,000
Exercise of stock options(1)			(53,467)	1,823
Stock-based compensation, total equity			7,759	6,603
Sale of common stock, net of offering costs			49,379
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance	1,892,177		1,892,177
Noncontrolling Interests, Ending Balance	1,074,864		1,074,864
Total Equity, Ending Balance	2,967,041	2,269,811	2,967,041	2,269,811
Douglas Emmett Inc Stockholders Equity [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Douglas Emmett, Inc. Stockholders' Equity, Beginning Balance			1,926,211	1,943,458
Net income attributable to common stockholders			65,696	44,217
Cash flow hedge fair value adjustment, Douglas Emmett, Inc. Stockholder's Equity			(14,376)	3,239
Contributions to consolidated joint venture			0
Sale of equity interest in consolidated joint venture			0
Dividends and distributions, Douglas Emmett, Inc. Stockholders' Equity			(98,501)	(92,087)
Common stock issued in exchange for OP Units			17,733	18,101
Repurchase of OP units			(498)
Issuance of OP units for cash				0
Exercise of stock options(1)			(53,467)	1,823
Stock-based compensation, Douglas Emmett Stockholders' Equity			0	0
Sale of common stock, net of offering costs			49,379
Douglas Emmett, Inc. Stockholders' Equity, Ending Balance	1,892,177	1,918,751	1,892,177	1,918,751
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Noncontrolling Interests, Beginning Balance			355,337	370,266
Noncontrolling Interests, Net Income			7,928	7,932
Cash flow hedge fair value adjustment, noncontrolling interest			(2,693)	909
Contributions to consolidated joint venture			459,750
Sale of equity interest in consolidated joint venture			291,029
Dividends and distributions, noncontrolling interest			(26,185)	(17,549)
Common stock issued in exchange for OP Units			(17,733)	(18,101)
Repurchase of OP units			(328)
Issuance of OP units for cash				1,000
Exercise of stock options(1)			0	0
Stock-based compensation, noncontrolling interest			7,759	6,603
Sale of common stock, net of offering costs			0
Noncontrolling Interests, Ending Balance	$ 1,074,864	$ 351,060	$ 1,074,864	$ 351,060

XML

Equity - Net Income Attributable To Common Stockholders And Transfers (To) From Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Net income attributable to common stockholders	$ 31,848	$ 12,070	$ 65,696	$ 44,217
Exchange of OP units with noncontrolling interests			17,733	18,101
Repurchase of OP units from noncontrolling interests			(498)	0
Net transfers from noncontrolling interests			17,235	18,101
Change from net income attributable to common stockholders and transfers from noncontrolling interests			$ 82,931	$ 62,318

XML

Equity - Accumulated Other Comprehensive Income Schedule (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			$ (9,285)
Net current period OCI	$ 18,429	$ (8,237)	(17,069)	$ 4,148
Ending balance	(23,661)		(23,661)
Cash Flow Hedging [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning balance			(9,285)	(30,089)
Other comprehensive loss before reclassifications			(37,927)	(21,975)
Reclassifications from AOCI			21,361	27,897
Net current period OCI			(17,069)	4,148
Less OCI attributable to noncontrolling interests			2,693	(909)
OCI attributable to common stockholders			(14,376)	3,239
Ending balance	$ (23,661)	$ (26,850)	(23,661)	(26,850)
Cash Flow Hedging [Member] | Fund X [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Other comprehensive loss before reclassifications			(814)	(2,483)
Reclassifications from AOCI			$ 311	$ 709

XML

Equity - Equity Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
Amortization of stock-based compensation	$ 2,300	$ 2,000	$ 7,077	$ 5,973
Capitalized stock-based compensation for improvements to real estate and developments	235	$ 208	683	610
Intrinsic value of options exercised	$ 2,100		$ 104,000	$ 2,200

XML

EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net income attributable to common stockholders	$ 31,848	$ 12,070	$ 65,696	$ 44,217
Allocation to participating securities: Unvested LTIP units	(180)	(59)	(365)	(224)
Numerator for the calculation of basic and diluted EPS	$ 31,668	$ 12,011	$ 65,331	$ 43,993
Weighted average shares of common stock outstanding - basic (in shares)	150,753	146,331	148,578	145,856
Effect of dilutive securities: Stock options (in shares)	2,666	4,409	4,241	4,429
Weighted average shares of common stock and common stock equivalents outstanding - diluted (in shares)	153,419	150,740	152,819	150,285
Basic EPS:
Net income attributable to common stockholders per share (usd per share)	$ 0.210	$ 0.082	$ 0.440	$ 0.302
Diluted EPS:
Net income attributable to common stockholders per share (usd per share)	$ 0.206	$ 0.080	$ 0.428	$ 0.293
Operating Partnership Units and Vested LTIP Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares)	24,788	26,307	25,148	26,520
Vested LTIP Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares)	675	8	766	235
Unvested LTIP Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of weighted average diluted shares (in shares)	783	647	679	576

XML

Fair Value of Financial Instruments - Estimated Fair Value of Secured Notes Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Fair value	$ 4,482,073	$ 3,691,075
Carrying value	$ 4,437,507	$ 3,634,163

XML

Fair Value of Financial Instruments - Fair Value Table (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Derivative Assets:
Fair value - derivatives	$ 0	$ 4,830
Derivative Liabilities:
Fair value - derivatives	$ 28,046	16,310
Fund X [Member] | Interest Rate Swap [Member]
Derivative Liabilities:
Percent of notional amount related to the Fund	100.00%
Level 2
Derivative Assets:
Fair value - derivatives	$ 0	4,830
Derivative Liabilities:
Fair value - derivatives	28,046	16,310
Level 2 | Fund X [Member]
Derivative Assets:
Fair value - unconsolidated Funds' derivatives	221	837
Derivative Liabilities:
Fair value - unconsolidated Funds' derivatives	$ 0	$ 0

XML

Segment Reporting - Narrative (Details)	9 Months Ended
	Sep. 30, 2016 segment
Segment Reporting [Abstract]
Number of reportable business segments	2

XML

Segment Reporting - Operating Activity Within Reportable Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting Information [Line Items]
Total office revenues	$ 167,608	$ 136,225	$ 475,083	$ 404,472
Office expenses	(56,926)	(49,195)	(158,190)	(139,936)
Total multifamily revenues	24,513	23,852	72,825	70,871
Multifamily expenses	(5,950)	(6,191)	(17,322)	(17,941)
Segment profit	129,245	104,691	372,396	317,466
Operating Segments [Member] | Office Segment [Member]
Segment Reporting Information [Line Items]
Total office revenues	167,608	136,225	475,083	404,472
Office expenses	(56,926)	(49,195)	(158,190)	(139,936)
Segment profit	110,682	87,030	316,893	264,536
Operating Segments [Member] | Multifamily Segment [Member]
Segment Reporting Information [Line Items]
Total multifamily revenues	24,513	23,852	72,825	70,871
Multifamily expenses	(5,950)	(6,191)	(17,322)	(17,941)
Segment profit	$ 18,563	$ 17,661	$ 55,503	$ 52,930

XML

Segment Reporting - Reconciliation Of Segment Profit To Net Income Attributable To Common Stockholders (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting [Abstract]
Total profit from all segments	$ 129,245	$ 104,691	$ 372,396	$ 317,466
General and administrative	(8,099)	(6,867)	(25,573)	(21,701)
Depreciation and amortization	(63,827)	(52,229)	(181,947)	(153,309)
Other income	2,295	2,129	6,527	13,103
Other expenses	(1,728)	(1,605)	(4,963)	(4,796)
Income, including depreciation, from unconsolidated real estate funds	2,334	898	5,564	3,548
Interest expense	(36,479)	(32,705)	(109,842)	(101,521)
Acquisition-related expenses	(1,188)	(153)	(2,865)	(641)
Income before gains	22,553	14,159	59,297	52,149
Gains on sales of investments in real estate	13,245	0	14,327	0
Net income	35,798	14,159	73,624	52,149
Less: Net income attributable to noncontrolling interests	(3,950)	(2,089)	(7,928)	(7,932)
Net income attributable to common stockholders	$ 31,848	$ 12,070	$ 65,696	$ 44,217

XML

Future Minimum Lease Rental Receipts (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Receivable [Abstract]
2017	$ 484,558
2018	426,338
2019	360,404
2020	301,221
2021	230,358
Thereafter	616,925
Total future minimum base rentals	$ 2,419,804
Term of residential leases	1 year

XML

Future Minimum Lease Rental Payments - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Ground lease payments	$ 183	$ 183	$ 550	$ 550

XML

Future Minimum Lease Rental Payments - Future Minimum Ground Lease Payments (Details) $ in Thousands	Sep. 30, 2016 USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2017	$ 733
2018	733
2019	733
2020	733
2021	733
Thereafter	47,827
Total future minimum lease payments	51,492
Future ground rent payments per year	$ 733

XML

Commitments, Contingencies and Guarantees (Details)	3 Months Ended	9 Months Ended
	Mar. 31, 2016 USD ($) property	Sep. 30, 2016 USD ($) property tenant	Sep. 30, 2015 tenant
Loss Contingencies [Line Items]
Number of tenants accounting for more than 10% of our total rental revenue and tenant recoveries | tenant		0	0
Amount accounts are insured for by Federal Deposit Insurance Corporation		$ 250,000
Number of properties containing Asbestos | property		25
Contractual amount for development project		$ 3,000,000
Apartment Building [Member] | HAWAII
Loss Contingencies [Line Items]
Apartments under construction | property	475
Estimated cost of construction	$ 120,000,000
Contractual amount for development project		$ 109,500,000
Unconsolidated Funds [Member]
Loss Contingencies [Line Items]
Number of properties containing Asbestos | property		4

XML

Commitments, Contingencies and Guarantees - Schedule of Debt Related to Unconsolidated Funds (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) property tenant	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 tenant
Debt Instrument [Line Items]
Number of tenants accounting for more than 10% of our total rental revenue and tenant recoveries | tenant	0			0
Long-term debt	$ 4,401,851		$ 3,611,276
Fund X [Member]
Debt Instrument [Line Items]
Long-term debt	$ 325,000
Loan Maturity Date	May 01, 2018
Collateral, number of properties | property	6
Maximum future payments under the swap agreement		$ 1,200
Fund X [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Swap Fixed Interest Rate	2.35%
Partnership X [Member]
Debt Instrument [Line Items]
Long-term debt	$ 110,000
Loan Maturity Date	Mar. 01, 2023
Collateral, number of properties | property	2
Maximum future payments under the swap agreement		$ 4,400
Partnership X [Member] | Interest Rate Swap [Member]
Debt Instrument [Line Items]
Swap Fixed Interest Rate	2.30%
Unconsolidated Funds [Member]
Debt Instrument [Line Items]
Long-term debt	$ 435,000
LIBOR [Member] | Fund X [Member]
Debt Instrument [Line Items]
Basis spread	1.75%
LIBOR [Member] | Partnership X [Member]
Debt Instrument [Line Items]
Basis spread	1.40%