Common and Preferred Stock Dividends Declared
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, 2008First 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