SANTA MONICA, Calif.,
Sept. 30, 2019 /PRNewswire/ --
Douglas Emmett, Inc. (NYSE: DEI), a
real estate investment trust (REIT), announced today that it has
extended maturities and lowered interest rates on over $1 billion of debt, while reducing its overall
leverage and adding to its pool of unencumbered assets:
- As previously announced, in July Douglas Emmett paid off a
$220 million loan scheduled to mature
in December 2023.
- Douglas Emmett has also
refinanced three more loans during the third quarter:
-
- A $400 million loan previously
scheduled to mature in November 2022,
which Douglas Emmett replaced in
September with a new secured, non-recourse $400 million interest-only loan maturing in
September 2026. The new loan bears interest at Libor plus
1.15%, which has been effectively fixed using swaps at 2.44% per
annum through September 2024.
- A $340 million loan previously
scheduled to mature in April 2022,
which Douglas Emmett replaced in
August with a new secured, non-recourse $415 million interest-only loan maturing in
August 2026. The new loan bears interest at Libor plus 1.10%,
which has been effectively fixed using swaps at 2.58% per annum
through April 2020 and thereafter at
3.07% per annum through August
2025.
- A $180 million loan previously
scheduled to mature in July 2022,
which Douglas Emmett replaced in
September with a new secured, non-recourse $200 million interest-only loan maturing in
September 2026. The new loan bears interest at Libor plus
1.20%, which has been effectively fixed using swaps at 2.77% per
annum through July 2020 and
thereafter at 2.36% per annum through October 2024.
Douglas Emmett has no remaining
loan maturities before 2023, has fixed all of its floating rate
debt, and has 40% of its office properties now totally
unencumbered.
Third quarter FFO will be negatively impacted by one-time
non-cash and cash refinancing costs equal to approximately
4 cents per share. Cash
interest expense savings from these transactions in 2020 are
expected to exceed 4 cents per
share. Douglas Emmett's
guidance for full-year FFO remains between $2.08 and $2.12 per
share and for full-year net income remains $0.67 to $0.71 per
share. For details about our guidance, and a reconciliation
of FFO guidance to Net Income guidance, please refer to page 24 and
25 of our second quarter earnings package, which is available
at ir.douglasemmett.com.
Douglas Emmett continues to
evaluate its remaining loans for opportunities to take advantage of
the current combination of low interest rates and spreads.
About Douglas Emmett,
Inc.
Douglas Emmett, Inc.
(DEI) is a fully integrated, self-administered and self-managed
real estate investment trust (REIT), and one of the largest owners
and operators of high-quality office and multifamily properties
located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring 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. For more information about Douglas Emmett, please visit our website
at www.douglasemmett.com.
Safe Harbor Statement
Except as disclosed,
Douglas Emmett's guidance does not
include the impact of future property acquisitions or dispositions,
financings, or other possible capital markets activities or
impairment charges. Except for the historical facts, the
statements in this press release regarding Douglas Emmett's business activities are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and we claim the
protection of the safe harbor contained in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements
presented in this press release, and those that we may make orally
or in writing from time to time, are based on our beliefs and
assumptions. Our actual results will be affected by known and
unknown risks, trends, uncertainties and factors, some of which are
beyond our control or ability to predict, including, but not
limited to: adverse economic and real estate developments in
Southern California and
Honolulu; a general downturn in
the economy; decreased rental rates or increased tenant incentives
and vacancy rates; defaults on, and early terminations and
non-renewal of, leases by tenants; increased interest rates and
operating costs; failure to generate sufficient cash flows to
service our debt; difficulties in acquiring properties; failure to
successfully operate properties; failure to maintain our status as
a REIT; possible adverse changes in rent control laws and
regulations; environmental uncertainties; risks related to natural
disasters; lack of or insufficient insurance; inability to
successfully expand into new markets or submarkets; risks
associated with property development; conflicts of interest with
our officers; changes in real estate and zoning laws and increases
in real property tax rates; possible future terrorist attacks; and
other risks and uncertainties detailed in our Annual Report on Form
10-K and other documents filed with the SEC. Although we believe
that our assumptions underlying our forward looking statements 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, please use caution in relying on any forward-looking
statements in this press release or any previously reported
forward-looking statements to anticipate future results or trends.
This press release 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.
Stuart McElhinney, Vice President
– Investor Relations
310.255.7751 smcelhinney@douglasemmett.com
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SOURCE Douglas Emmett, Inc.