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Bill Kamer, who most of you know already, is our CFO. Bill has more than 30 years of real estate experience. He started with Douglas Emmett 12 years ago as the company’s General Counsel and moved into his current capacity as we embarked on our IPO five years ago. Prior to joining Douglas Emmett, Bill is the senior partner at Cox Castle for 16 years, which is a prominent real estate firm here in LA.Ted Guth who is our most recent addition officially joined us in January. As an outside advisor, he has been a key member of our team for almost seven years. He has a diverse background as a lawyer, investment banker, and professor. As expected, he has hit the ground running with us and ready to take on anything. Although they are not presenting, he probably chatted with them during breakfast. Dan Emmett, who is the Chairman of our Board and Founder of Douglas Emmett over 40 years ago. In addition to working directly with our Board of Directors, Dan actively works with other members of our management team on our real estate sustainability initiatives as well as our fund structure. John Meehan started with Douglas Emmett as the Summer Intern and liked us so much that he continued to stand permanently. He has now been with us for 11 years. He is the Vice President and works directly with Jordan on acquisitions and just divisions and was still on debt financing. Incidentally, he will be our primary tour guy today. With that, I will now like to turn it over to Jordan. Unidentified Company Speaker But before Jordan, two things I just have to say here in Mary’s introduction. One of them is she said most of you know who I am. If you do not know Mary Jensen, could you raise your hand? Okay, there is no one, doesn’t exist. And the other thing is in addition to Ted’s many diverse background experiences, one thing that you should take advantage of in talking to him today is when he was the Chief Operating Officer for a boutique investment banking from his office was in the 150 South Rodeo office back then in the actual space when the vacant space that we acquired that we are going to be sitting in. So, feel free to ask him about that building and what it was like as a tenant, those things.
Ted Guth – Executive Vice PresidentAfter I left, they actually retired the space. Unidentified Company Speaker Anyway, Jordan now? Jordan Kaplan – President and Chief Executive Officer Okay. We only buy buildings that Ted’s been at. So, I think first I want to know if it has been effective for us to ask BlackBerry to shutdown during the presentations, so that we’d have all of your attention. So, welcome to the – until I get this to change, here we go, welcome to our presentation. We are glad that you are all here. So, we are going to do something little different this year as many of you know and many of you have been with us. Since the beginning, I was just talking to Jim about that. Well, five-year anniversary is coming up in about two weeks. So, we are going to do something you’ve probably never seen before as CEO is going to give a presentation where they are explaining to you why our stock is undervalued. But there we all are happy in an economy that seems like the million years ago, but it was just five years ago. So, in October of 2006, we went public and I think we still are the largest REIT IPO in history. We’ve raised $1.6 billion, $21 of share. I think that $1.6 billion was after the $1 billion that we paid to the investment bankers to get us public, that was our net what we got. We actually sold all of the earlier clients, the stock at $21 we opened it, I think $23.75. And as you all know we then went through a very wild ride almost immediately after we went public, and we had a little bit of a honeymoon in 2007 and then it got really tough, I mean, feeling like you’re in a rollercoaster and in particular 2008 and 2009 were just exhausting. And you can see here that the bull has taken a little nap.
So, 2010/11, we’ve been talking about recovery, but I hope everybody is worried that the Chinese are going to stop buying and Europeans are going to stop banking. And so no one feels like it’s a very direct road. So, through all of this you would think that we would look the way you look when you have just come off a rollercoaster like that. You know what the hair is thick and straight up and the close half off and looking for the throw up bag, but in fact I feel like we look like, my wife just after she has come back from the beauty parlor and the massage and all the good stuff, right.So we went into the recession with 46 properties and did exactly what you’re supposed to do during a recession and now we have 58, we’ve increased our portfolio on a per square foot basis by 27%, that I think we have very good recessionary prices. And I mean a lot of you will remember when we were going originally on our road show five years ago, going publicly kept in as well. Is there anything left that you can buy or could you really is there any external growth left for your markets regarded that is internal but is there anything external and we obviously were able to find things and we’re very happy we did. What you might find a little bit more surprising is our rents are up 42% from when we went public. When we went public, where everyone bought the stock at $23.75, we are up 42% on rents and on a per square foot basis, which is somewhat the magic of cash rents, because we have growth going cash rents in all our leases, we’re up 16%. So we’ve had some very strong earnings growth over the last few years. And you can see our FFOs up 16% which is a good story in itself and maybe would not be as expected. But what’s better about that story, which I don’t people are focusing on as often is this, when you go public, there are couple of large non-cash things that actually provide you with non-cash income, that is included in FFO, FAS 141 and obviously you’re straight lining. And so, I don’t want to call it fiction or fake, or unrealistic income but it’s in your balance sheet, it’s in FFO. And when we went public, we had $0.36 of share of that sort of income. Read the rest of this transcript for free on seekingalpha.com