Douglas Emmett posted a mixed Q2 2024 performance. Revenue came in at $245.8 million, down 3.0% year over year but up 0.3% quarter over quarter, reflecting continued softness in certain coastal office markets while remaining supported by premium assets in Los Angeles and Honolulu. Gross margin held at approximately 66.2%, and operating income rose 75.6% year over year to $55.7 million, aided by a more favorable expense mix despite a high absolute level of depreciation and interest expense. Net income turned positive at $10.9 million for the quarter, with EPS of $0.06, marking a meaningful swing from the prior-year Q2 when GAAP earnings were negative. Free cash flow generation remained solid at $42.2 million, supported by $91.9 million of cash flow from operations and capital expenditures of about $49.7 million. The company sustains a robust liquidity position with cash and cash equivalents of roughly $561 million. However, leverage remains a principal risk, as net debt stood at $4.996 billion against EBITDA of $159.7 million, yielding a net debt to EBITDA multiple in the vicinity of ~31x and an interest coverage around 1.01x, signaling sensitivity to rising rates and refinancing risk. Management commentary (when available) typically emphasizes portfolio optimization, capital recycling, and liquidity preservation, but no explicit forward-looking guidance was captured in the provided data.