Quarterly
NYSE Amount/
Class Symbol Share Record Date Payment Date
-------- ------ --------- ----------------- -----------------
Series J DREPRJ $ .414063 November 14, 2008 November 28, 2008
Series K DREPRK $ .406250 November 14, 2008 November 28, 2008
Series L DREPRL $ .412500 November 14, 2008 November 28, 2008
Series M DREPRM $ .434375 December 17, 2008 December 31, 2008
Series N DREPRN $ .453125 December 17, 2008 December 31, 2008
Series O DREPRO $ .523438 December 17, 2008 December 31, 2008
Third Quarter Operating Statistics
-- At the end of the third quarter, the company's 691 stabilized in-
service held-for-rental properties, totaling 114.3 million square feet,
were 93.8 percent leased compared to 93.1 percent at June 30, 2008.
-- Same property net operating income increased 4.5 percent for the three
months ended September 30, 2008.
-- The company renewed 74 percent of all leases expiring in the third
quarter, for a total of 1.9 million square feet, with average net effective
rent increases of 4.0 percent.
-- The company owns 33 recently completed held-for-rental properties,
with a total of 9.8 million square feet that are 34.1 percent leased. The
company has 10 held-for-rental properties under development, with a total
of 1.8 million square feet that are 32.9 percent pre-leased.
A copy of the company's supplemental information fact book will be
available after 6:00 p.m. EDT today in the Investor Relations section of
the company's Web site at www.dukerealty.com. Duke is also hosting a
conference call on Thursday, October 30 at 3:00 p.m. New York time to
discuss its third quarter operating results. All investors are invited to
listen to this call, which can be heard through the Investor Relations
section of the company's Web site.
When used in this news release, the word "believes," "expects," "estimates"
and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties
that could cause actual results to differ materially. In particular, among
the factors that could cause actual results to differ materially are
continued qualification as a real estate investment trust, general business
and economic conditions, competition, increases in real estate construction
costs, interest rates, accessibility of debt and equity capital markets and
other risks inherent in the real estate business including tenant defaults,
potential liability relating to environmental matters and liquidity of real
estate investments. Readers are advised to refer to Duke's Annual Report on
Form 10-K as filed with the Securities and Exchange Commission on February
29, 2008 for additional information concerning these risks.
About Duke Realty Corporation
Duke Realty Corporation specializes in the ownership, construction,
development, leasing, and management of office, industrial, and healthcare
real estate. It is the largest publicly traded, vertically integrated
office/industrial real estate company in the United States. Duke owns,
manages, or has under development more than 144 million rentable square
feet in 24 major U.S. cities. The company controls more than 7,100 acres of
land for more than 107 million square feet of future development, including
nationwide real estate solutions through its national development division.
Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE
and is listed on the S&P MidCap 400 Index.
Financial Highlights
(in thousands, except per share data)
==================== ====================
Three Months Ended Nine Months Ended
September 30, September 30,
==================== ====================
Operating Results 2008 2007 2008 2007
========= ========= ========= =========
Revenues from continuing
operations $ 245,935 $ 227,114 $ 725,957 $ 673,398
Earnings from rental operations 15,584 20,801 57,188 72,115
Earnings from service
operations 21,738 7,301 36,541 26,253
Net income available for common
shareholders - Basic 13,054 53,387 34,899 159,026
Net income available for common
shareholders - Diluted 13,741 56,960 36,760 170,127
Funds from operations available
for common shareholders -
Basic 97,102 93,673 269,838 267,282
Funds from operations available
for common shareholders -
Diluted 102,152 99,943 284,050 285,922
Per Share:
Funds from operations available
for common shareholders -
Basic $ 0.66 $ 0.68 $ 1.84 $ 1.95
Funds from operations available
for common shareholders -
Diluted $ 0.66 $ 0.68 $ 1.83 $ 1.93
Net income available for common
shareholders - Basic $ 0.09 $ 0.39 $ 0.24 $ 1.16
Net income available for common
shareholders - Diluted $ 0.09 $ 0.39 $ 0.24 $ 1.15
Dividend payout ratio of funds
from operations 73.5% 70.6% 79.2% 74.4%
Weighted average shares
outstanding
Basic - Net income and
Funds From Operations 146,966 137,576 146,680 137,110
Diluted- Net income and
Funds From Operations 155,344 147,651 155,105 147,986
========= ========= ========= =========
September December
30, 31,
Balance Sheet Data 2008 2007
========= ========= ========= =========
Net real estate investments $6,221,273 $6,101,332
Total assets 7,842,864 7,661,981
Total debt 4,399,743 4,316,460
Shareholders' equity 2,885,430 2,750,033
Common shares outstanding at
end of period 147,110 146,175
Reconciliation of Net Income to Funds From Operations
(in thousands, except per share data)
Three Months Ended
September 30,
(Unaudited)
========================================================
2008 2007
=========================== ===========================
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ---------- ------ --------- ---------- ------
Net Income
Available for
Common Shares $ 13,054 146,966 $ 0.09 $ 53,387 137,576 $ 0.39
Add back:
Minority
interest in
earnings of
unitholders 687 7,638 3,573 9,176
Other
potentially
dilutive
shares 740 899
--------- ---------- --------- ----------
Diluted Net
Income
Available for
Common Shares $ 13,741 155,344 $ 0.09 $ 56,960 147,651 $ 0.39
========= ========== ====== ========= ========== ======
Reconciliation
to Funds From
Operations
("FFO")
Net Income
Available for
Common Shares $ 13,054 146,966 $ 0.09 $ 53,387 137,576 $ 0.39
Adjustments:
Depreciation
and
Amortization 75,260 72,076
Company
Share of
Joint
Venture
Depreciation
and
amortization 14,450 10,574
Earnings
from
depreciable
property
sales-wholly
owned (1,299) (39,670)
Earnings
from
depreciable
property
sales-JV 0 3
Minority
interest
share of
adjustments (4,363) (2,697)
--------- ---------- --------- ----------
Basic Funds From
Operations 97,102 146,966 $ 0.66 93,673 137,576 $ 0.68
Minority
interest in
earnings of
unitholders 687 7,638 3,573 9,176
Minority
interest
share of
adjustments 4,363 2,697
Other
potentially
dilutive
shares 740 899
--------- ---------- --------- ----------
Diluted Funds
From Operations $ 102,152 155,344 $ 0.66 $ 99,943 147,651 $ 0.68
========= ========== ====== ========= ========== ======
Nine Months Ended
September 30,
(Unaudited)
========================================================
2008 2007
=========================== ===========================
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ---------- ------ --------- ---------- ------
Net Income
Available for
Common Shares $ 34,899 146,680 $ 0.24 $ 159,026 137,110 $ 1.16
Add back:
Minority
interest in
earnings of
unitholders 1,861 7,727 11,101 9,560
Other
potentially
dilutive
shares 698 1,316
--------- ---------- --------- ----------
Diluted Net
Income
Available for
Common Shares $ 36,760 155,105 $ 0.24 $ 170,127 147,986 $ 1.15
========= ========== ====== ========= ========== ======
Reconciliation
to Funds From
Operations
("FFO")
Net Income
Available for
Common Shares $ 34,899 146,680 $ 0.24 $ 159,026 137,110 $ 1.16
Adjustments:
Depreciation
and
Amortization 230,956 208,222
Company
Share of
Joint
Venture
Depreciation
and
amortization 28,769 21,152
Earnings
from
depreciable
property
sales-wholly
owned (11,940) (111,751)
Earnings
from
depreciable
property
sales-share
of joint
venture (495) (1,828)
Minority
interest
share of
adjustments (12,351) (7,539)
--------- ---------- --------- ----------
Basic Funds From
Operations 269,838 146,680 $ 1.84 267,282 137,110 $ 1.95
Minority
interest in
earnings of
unitholders 1,861 7,727 11,101 9,560
Minority
interest
share of
adjustments 12,351 7,539
Other
potentially
dilutive
shares 698 1,316
--------- ---------- --------- ----------
Diluted Funds
From Operations $ 284,050 155,105 $ 1.83 $ 285,922 147,986 $ 1.93
========= ========== ====== ========= ========== ======
Contact Information: Investor Relations Contacts: Shona L. Bedwell 317.808.6169 Randy A. Henry 317.808.6060 News Media Contact: Joel Reuter 317.808.6137