In order to finance its Warner Center Towers, California-based
real estate investment trust (REIT)
Douglas Emmett, Inc. (
obtained a loan worth $285.0 million.
The Northwestern Mutual Life Insurance Company and Prudential
Mortgage Capital Company jointly provided $142.5 million each
towards the loan to Douglas Emmett. The new fixed rate loan is
scheduled to expire after seven years.
DOUGLAS EMMETT (DEI): Free Stock Analysis
PRUDENTIAL FINL (PRU): Free Stock Analysis
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With total space of 1.9 million square feet, Warner Center
Towers is one of Southern California's largest and best known
office complexes. The campus consists of six office towers and
boasts a number of prominent banking and financial services
Northwestern Mutual is a Wisconsin based company that offers
financial services - including life insurance, long-term care
insurance, disability insurance, annuity, mutual fund, and employee
benefit services. The company primarily invests in commercial
mortgages, equities and securitized investments across all major
real estate property types.
Prudential Mortgage Capital Company is the full-service, commercial
and multifamily mortgage lending business of
Prudential Financial, Inc. (
. This new financing loan continues its lending relationship with
Douglas Emmett. Prudential Mortgage Capital previously provided a
loan worth $355 million to finance the portfolio of Douglas
Emmett in 2011.
With a geographically diverse portfolio concentrated mostly in
high-income, high-growth areas, Douglas Emmett is one of the
largest owners and operators of high-quality office and
multi-family properties in premier coastal submarkets of Southern
California and Hawaii. The company generally signs long-term leases
with high credit tenants. It limits the downside risk and provides
a steady source of income.
As of June 30, 2012, the company had cash and cash equivalents of
$162.0 million and a consolidated debt balance of $3,256.1 million.
At present the company has over 55 properties spanning
approximately 14.7 million square feet.
Douglas Emmett recently reported second-quarter 2012 FFO (Funds
from Operations) of 36 cents, beating the Zacks Consensus Estimate
by a penny. We presently have a long-term 'Neutral' recommendation
on the stock. Also, it carries a Zacks #3 Rank (a short-term Hold
Note: FFO, a widely accepted and reported measure of the
performance of REITs, is derived by adding depreciation,
amortization and other non-cash expenses to net income.