NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
----- ------ ------------ ----------- ------------
Series J DREPRJ $.414063 May 16, 2008 May 30, 2008
Series K DREPRK $.406250 May 16, 2008 May 30, 2008
Series L DREPRL $.412500 May 16, 2008 May 30, 2008
Series M DREPRM $.434375 June 16, 2008 June 30, 2008
Series N DREPRN $.453125 June 16, 2008 June 30, 2008
Series O DREPRO $.523438 June 16, 2008 June 30, 2008
First Quarter Operating Statistics
-- At the end of the first quarter, the Company's 673 stabilized in-
service properties, totaling 108.3 million square feet, were 92.9 percent
leased compared to 94.9 percent leased at December 31, 2007.
-- The Company's value creation pipeline totaled $1.8 billion, including
$614 million of developments with an expected stabilized return of 8.8
percent that Duke plans to own indefinitely after completion; $1.1 billion
of developments with an expected stabilized return of 8.2 percent that the
Company plans to sell within approximately one year of completion; and a
$116 million backlog of third-party construction contracts with an average
overall profit margin of 18.2 percent.
-- In addition to its 673 stabilized in-service properties, the Company
owns 25 recently completed development properties, with a total 6.9 million
square feet, that are 31.6 percent leased. The company owns 32 properties
under development, with a total of 7.3 million square feet, that are 30.7
percent pre-leased.
-- The Company renewed 71 percent of all leases expiring in the first
quarter, for a total of 2.7 million square feet, with average net effective
rent increases of 6.8 percent.
-- Same property net operating income increased 1.8 percent for the three
months ended March 31, 2008.
-- Property sales in the first quarter totaled $44.1 million, at an
average stabilized capitalization rate of 7.3 percent.
-- The Company completed acquisitions of properties totaling $28.0
million, with an overall stabilized yield of 8.0 percent.
-- The Company's interest and fixed-charge coverage ratios in the first
quarter were 3.2 and 2.0, respectively, and its debt-to-total market
capitalization ratio was 48.7 percent at March 31, 2008.
When used in this press 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, medical office
and retail real estate. It is the largest publicly traded, vertically
integrated office/industrial real estate company in the United States. The
company owns, manages or has under development more than 122 million
rentable square feet in 24 major U.S. cities. Duke, which controls
approximately 7,600 acres of land for more than 111 million square feet of
future development, also provides nationwide real estate solutions through
its national development division.
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 tomorrow at 3:00 p.m. New York time to discuss its first
quarter operating results. All investors are invited to listen to this
call, which can be accessed through the Investor Relations section of the
Company's web site.
Financial Highlights
(in thousands, except per share data)
Three Months Ended
March 31,
========================
Operating Results 2008 2007
=========== ===========
Revenues from continuing operations $ 242,677 $ 224,526
Earnings from rental operations 22,083 24,921
Earnings from service operations 4,413 6,934
Net income available for common shareholders -
Basic 4,048 68,563
Net income available for common shareholders -
Diluted 4,268 73,925
Funds from operations available for common
shareholders - Basic 84,642 86,327
Funds from operations available for common
shareholders - Diluted 89,188 92,500
Per Share:
Funds from operations available for common
shareholders - Basic $ 0.58 $ 0.63
Funds from operations available for common
shareholders - Diluted $ 0.58 $ 0.62
Net income available for common shareholders -
Basic $ 0.03 $ 0.50
Net income available for common shareholders -
Diluted $ 0.03 $ 0.49
Dividend payout ratio of funds from operations 82.8% 76.6%
Weighted average shares outstanding
Basic - Net income and Funds From
Operations 146,331 136,823
Diluted- Funds From Operations 154,596 148,327
Diluted- Net income 154,596 149,465
March 31, December 31,
Balance Sheet Data 2008 2007
=========== ===========
Net real estate investments $ 6,173,431 $ 6,101,332
Total assets 7,760,243 7,661,981
Total debt 4,262,139 4,316,460
Shareholders' equity 2,979,653 2,750,033
Common shares outstanding at end of period 146,670 146,175
Reconciliation of Net Income to Funds From Operations
(in thousands, except per share data)
Three Months Ended
March 31,
(Unaudited)
================================================
2008 2007
======================= =======================
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
-------- ------- ------ -------- ------- ------
Net Income Available for
Common Shares $ 4,048 146,331 $ 0.03 $ 68,563 136,823 $ 0.50
Add back:
Minority interest in
earnings of
unitholders 220 7,858 4,910 9,729
Joint Venture Partner
Convertible Ownership
Net Income 452 1,138
Other common stock
equivalents 407 1,775
-------- ------- -------- -------
Diluted Net Income
Available for Common
Shares $ 4,268 154,596 $ 0.03 $ 73,925 149,465 $ 0.49
======== ======= ====== ======== ======= ======
Reconciliation to Funds
From Operations ("FFO")
Net Income Available for
Common Shares $ 4,048 146,331 $ 0.03 $ 68,563 136,823 $ 0.50
Adjustments:
Depreciation and
Amortization 79,121 67,739
Company Share of Joint
Venture Depreciation
and amortization 6,928 4,968
Earnings from
depreciable property
sales-wholly owned (1,110) (51,720)
Earnings from
depreciable property
sales-JV (19) (1,960)
Minority interest
share of adjustments (4,326) (1,263)
-------- ------- -------- -------
Basic Funds From
Operations 84,642 146,331 $ 0.58 86,327 136,823 $ 0.63
Minority interest in
earnings of
unitholders 220 7,858 4,910 9,729
Minority interest
share of adjustments 4,326 1,263
Other common stock
equivalents 407 1,775
-------- ------- -------- -------
Diluted Funds From
Operations $ 89,188 154,596 $ 0.58 $ 92,500 148,327 $ 0.62
======== ======= ====== ======== ======= ======
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