Douglas Emmett, Inc. Announces 2007 Fourth Quarter and Year-End Earnings Results

Reports FFO for the Quarter of $0.31 Per Diluted Share and FFO for
the Year of $1.17 Per Diluted Share
SANTA MONICA, Calif.--(Business Wire)--
Douglas Emmett, Inc. (NYSE:DEI), a real estate investment trust
(REIT) focused on owning and acquiring top-tier office properties and
multifamily communities within targeted submarkets, today announced
its fourth quarter and year-end financial results for the quarter and
year ended December 31, 2007.

Financial Results

Funds From Operations (FFO) for the quarter ended December 31,
2007 totaled $49.2 million, or $0.31 per diluted share. For the year
ended December 31, 2007, FFO totaled $190.9 million, or $1.17 per
diluted share. The Company reported a GAAP net loss of $5.7 million,
or approximately ($0.05) per diluted share, for the quarter ended
December 31, 2007 and a GAAP net loss of $13.0 million, or ($0.12) per
diluted share, for the year ended December 31, 2007.

Company Operations

As of December 31, 2007, the Company's office portfolio was 95.7%
leased, which was consistent with the previous period ending September
30, 2007. Occupancy for the Company's office portfolio was 95.0% as of
December 31, 2007 compared to 93.9% occupied as of September 30, 2007.
The occupied percentage represents the leased portion of the Company's
office portfolio less those leases where the rent commencement date
has yet to occur. During the fourth quarter, the Company signed 91 new
and renewal leases, totaling approximately 461,468 square feet. The
Company's multifamily portfolio was 99% leased as of December 31,
2007.

Acquisitions

During the fourth quarter, the Company acquired Cornerstone Plaza,
an 8-story, Class A office building comprised of approximately 174,000
square feet, for a contract price of $84 million, or approximately
$484 per square foot. This acquisition increases the Company's assets
within its Olympic Corridor submarket to 5 office buildings, totaling
approximately 1.1 million rentable square feet. The building is
located at 1990 South Bundy Drive in West Los Angeles, California.

Share Repurchases

During the fourth quarter, the Company repurchased approximately
1.7 million share equivalents in private transactions for a total
consideration of approximately $40.0 million or $22.86 per share.
Subsequent to the end of the fourth quarter, the Company repurchased
approximately one million share equivalents totaling $21.5 million, or
$21.55 per share. To-date, the Company has repurchased a total of 9.1
million share equivalents totaling $215.9 million.

Dividends

During the quarter, the Company's Board of Directors approved a
$0.175 per share quarterly cash dividend, which was paid on January
15, 2008 to shareholders of record as of December 31, 2007. On an
annualized basis, the dividend represents a distribution of $0.70 per
common share. The taxability of the Company's 2007 dividends was
issued in a separate press release on January 24, 2008 and can be
obtained through the company Web site.

Conference Call and Web Cast Information

A conference call to discuss the Company's 2007 fourth quarter and
year-end results is scheduled for Tuesday, February 12, 2008 at 2:00
p.m. Eastern Time or 11:00 a.m. Pacific Time. Interested parties can
access the call via the Internet by going to the Investor Relations
section of the Company's Web site at www.douglasemmett.com or by
dialing into the call at 800-218-0713 (domestic) or 303-275-2170
(international). A replay of the live call will be available via the
web site for 90 days. A digital replay will be available through
Tuesday, February 19, 2008 at 800-405-2236 (domestic) or 303-590-3000
(international) and using the passcode 11107825.

Supplemental Information

Supplemental financial information for the Company's 2007 fourth
quarter and year-end financial results can be accessed on the
Company's Web site under the Investor Relations section at
www.douglasemmett.com.

About Douglas Emmett, Inc.

Douglas Emmett, Inc. (NYSE: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 targeted submarkets in
California and Hawaii. The Company's properties are concentrated in
ten premier submarkets - Brentwood, Olympic Corridor, Century City,
Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino, Warner
Center/Woodland Hills and Burbank and Honolulu, Hawaii. The Company
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 on Douglas Emmett,
please visit the Company's Web site at www.douglasemmett.com.

Safe Harbor Statement

Except for the historical facts, the statements in this press
release regarding Douglas Emmett's business activities are
forward-looking statements based on the beliefs of, assumptions made
by, and information currently available to us about 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
in relying on forward-looking statements to anticipate future results
or trends. For a discussion of some of the risks and uncertainties
that could cause actual results to differ from those contained in the
forward-looking statements, see "Risk Factors" in our Annual Report on
Form 10-K filed with the Securities and Exchange Commission.

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Douglas Emmett, Inc.
Consolidated Balance Sheets
(in thousands, except for share data)

December 31, December 31,
2007 2006
------------- -------------
Assets (unaudited)
Investments in real estate:
Land $ 825,560 $ 813,599
Buildings and improvements 4,978,124 4,863,955
Tenant improvements and leasing costs 460,486 411,063
------------- -------------
6,264,170 6,088,617
Less: accumulated depreciation (242,114) (32,521)
------------- -------------
Net investment in real estate 6,022,056 6,056,096
Cash and cash equivalents 5,843 4,536
Tenant receivables, net 955 4,160
Deferred rent receivables, net 20,805 3,587
Interest rate contracts 84,600 76,915
Acquired lease intangible assets, net 24,313 34,137
Other assets 31,396 20,687
------------- -------------
Total Assets $ 6,189,968 $ 6,200,118
============= =============
Liabilities
Secured notes payable $ 3,080,450 $ 2,760,000
Unamortized non-cash debt premium 25,227 29,702
Interest rate contracts 129,083 6,278
Accrued interest payable 13,963 12,701
Accounts payable and accrued expenses 48,741 39,035
Acquired lease intangible liabilities,
net 218,371 263,649
Security deposits 31,309 28,670
Dividends payable 19,221 13,801
------------- -------------
Total Liabilities 3,566,365 3,153,836

Minority interests 793,764 934,509

Stockholders' equity
Common stock 1,098 1,150
Additional paid-in capital 2,144,849 2,144,600
Accumulated other comprehensive (loss)
income (101,163) 415
Accumulated deficit (214,945) (34,392)
------------- -------------
Total stockholders' equity 1,829,839 2,111,773
------------- -------------
Total liabilities and stockholders'
equity $ 6,189,968 $ 6,200,118
============= =============
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Douglas Emmett, Inc.
Consolidated Statements of Income
(unaudited and in thousands, except per share data)

3-Months Ended Year Ended
December 31, 2007 December 31, 2007
----------------- -----------------
Revenues
Office rental:
Rental revenues $ 97,833 $ 376,921
Tenant recoveries 5,253 25,177
Parking and other income 12,313 46,648
----------------- -----------------
Total office revenues 115,399 448,746
Multifamily rental:
Rental revenues 17,040 67,427
Parking and other income 525 2,047
----------------- -----------------
Total multifamily revenues 17,565 69,474
----------------- -----------------
Total revenues 132,964 518,220
Operating Expenses
Office expenses 31,852 128,759
Multifamily expenses 4,023 17,150
General and administrative 5,462 21,486
Depreciation and amortization 57,349 209,593
----------------- -----------------
Total operating expenses 98,686 376,988
----------------- -----------------
Operating income 34,278 141,232
Interest and other income 36 695
Interest expense (42,497) (160,616)
----------------- -----------------
Loss before minority interests (8,183) (18,689)
Minority interests 2,493 5,681
----------------- -----------------
Net loss $ (5,690) $ (13,008)
================= =================
Net loss per common share -
basic and diluted $ (0.05) $ (0.12)
================= =================
Weighted average shares of
common stock outstanding -
basic and diluted 109,834 112,646
================= =================
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FFO Reconciliation
----------------------------------------------------------------------

3-Months Ended Year Ended
December 31, 2007 December 31, 2007
------------------------------------
(unaudited and in thousands)

Funds From Operations (FFO)(1):
Net loss $ (5,690) $ (13,008)
Depreciation and amortization
of real estate assets 57,349 209,590
Minority interests (2,493) (5,681)
------------------------------------
FFO $ 49,166 $ 190,901
====================================
Weighted average share
equivalents outstanding (in
thousands) - diluted 159,111 162,935

FFO per share - diluted $ 0.31 $ 1.17

(1) We calculate funds from operations before minority interest (FFO)
in accordance with the standards established by the National
Association of Real Estate Investment Trusts (NAREIT). FFO represents
net income (loss), computed in accordance with accounting principles
generally accepted in the United States of America (GAAP), excluding
gains (or losses) from sales of depreciable operating property, real
estate depreciation and amortization (excluding amortization of
deferred financing costs) and after adjustments for unconsolidated
partnerships and joint ventures. Management uses FFO as a
supplemental performance measure because, in excluding real estate
depreciation and amortization and gains and losses from property
dispositions, it provides a performance measure that, when compared
year over year, captures trends in occupancy rates, rental rates and
operating costs. We also believe that, as a widely recognized measure
of the performance of REITs, FFO will be used by investors as a basis
to compare our operating performance with that of other REITs.
However, because FFO 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, the utility of FFO as a measure of our performance is
limited. Other equity REITs may not calculate FFO in accordance with
the NAREIT definition and, accordingly, our FFO may not be comparable
to such other REITs' FFO. 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 funds available to fund our cash needs, including our
ability to pay dividends. FFO should not be used as a supplement to
or substitute for cash flow from operating activities computed in
accordance with GAAP.
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Douglas Emmett, Inc.
Mary Jensen, Vice President - Investor Relations
310-255-7751
mjensen@douglasemmett.com

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