NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
---------- ------------ ------------------ ------------------
Series J DREPRJ $ .414063 August 15, 2008 August 29, 2008
Series K DREPRK $ .406250 August 15, 2008 August 29, 2008
Series L DREPRL $ .412500 August 15, 2008 August 29, 2008
Series M DREPRM $ .434375 September 16, 2008 September 30, 2008
Series N DREPRN $ .453125 September 16, 2008 September 30, 2008
Series O DREPRO $ .523438 September 16, 2008 September 30, 2008
Second Quarter Operating Statistics
-- At the end of the second quarter, the Company's 673 stabilized in-
service properties, totaling 109.2 million square feet, were 93.1 percent
leased compared to 92.9 percent at March 31, 2008.
-- The Company's value creation pipeline totaled $1.7 billion, including
$377 million of developments with an expected stabilized return of 8.9
percent that Duke plans to own indefinitely after completion; $1.3 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
$106 million backlog of third-party construction contracts with an average
overall profit margin of 16.1 percent.
-- In addition to its 673 stabilized in-service properties, the Company
owns 32 recently completed development properties, with a total 9.7 million
square feet, that are 34.1 percent leased. The company owns 18 properties
under development, with a total of 3.1 million square feet, that are 42.4
percent pre-leased.
-- The Company renewed 76 percent of all leases expiring in the second
quarter, for a total of 1.8 million square feet, with average net effective
rent increases of 3.4 percent.
-- Same property net operating income increased 2.2 percent for the three
months ended June 30, 2008.
-- Property sales in the second quarter totaled $102.4 million, at an
average stabilized capitalization rate of 7.1 percent.
-- The Company completed acquisitions of properties totaling $7.4
million, with an overall stabilized yield of 7.6 percent.
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 131 million
rentable square feet in 24 major U.S. cities. Duke, which controls over
7,400 acres of land for more than 110 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 on Thursday, July 31 at 3:00 p.m. New York time to discuss
its second 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 Six Months Ended
June 30, June 30,
-------------------- ------------------------
Operating Results 2008 2007 2008 2007
--------- --------- ----------- -----------
Revenues from continuing
operations $ 242,232 $ 222,719 $ 479,131 $ 446,120
Earnings from rental
operations 21,945 26,734 41,223 51,476
Earnings from service
operations 10,390 12,018 14,803 18,952
Net income available for
common shareholders -
Basic 17,797 37,076 21,845 105,639
Net income available for
common shareholders -
Diluted 18,751 39,694 23,019 113,167
Funds from operations
available for common
shareholders - Basic 88,094 87,282 172,736 173,609
Funds from operations
available for common
shareholders - Diluted 92,710 93,479 181,898 185,979
Per Share:
Funds from operations
available for common
shareholders - Basic $ 0.60 $ 0.64 $ 1.18 $ 1.27
Funds from operations
available for common
shareholders - Diluted $ 0.60 $ 0.63 $ 1.17 $ 1.26
Net income available for
common shareholders -
Basic $ 0.12 $ 0.27 $ 0.15 $ 0.77
Net income available for
common shareholders -
Diluted $ 0.12 $ 0.27 $ 0.15 $ 0.76
Dividend payout ratio of
funds from operations 80.8% 76.2% 82.5% 75.8%
Weighted average shares
outstanding
Basic - Net income and
Funds From Operations 146,741 136,921 146,536 136,873
Diluted - Net income and
Funds From Operations 155,064 148,129 154,894 148,170
--------- --------- ----------- -----------
June 30, December 31,
Balance Sheet Data 2008 2007
--------- --------- ----------- -----------
Net real estate investments $ 6,237,870 $ 6,101,332
Total assets 7,833,069 7,661,981
Total debt 4,346,822 4,316,460
Shareholders' equity 2,935,021 2,750,033
Common shares outstanding
at end of period 146,869 146,175
Reconciliation of Net Income to Funds From Operations
(in thousands, except per share data)
Three Months Ended
June 30,
(Unaudited)
--------------------------------------------------
2008 2007
------------------------- -------------------------
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ------- ------ --------- ------- ------
Net Income Available
for Common Shares $ 17,797 146,741 $ 0.12 $ 37,076 136,921 $ 0.27
Add back:
Minority interest
in earnings of
unitholders 954 7,684 2,618 9,782
Other common stock
equivalents 639 1,426
--------- ------- --------- -------
Diluted Net Income
Available for
Common Shares $ 18,751 155,064 $ 0.12 $ 39,694 148,129 $ 0.27
========= ======= ====== ========= ======= ======
Reconciliation to
Funds From Operations
("FFO")
Net Income Available
for Common Shares $ 17,797 146,741 $ 0.12 $ 37,076 136,921 $ 0.27
Adjustments:
Depreciation and
Amortization 76,575 68,407
Company Share of
Joint Venture
Depreciation
and amortization 7,391 5,610
Earnings from
depreciable
property
sales-wholly owned (9,531) (20,361)
Earnings from
depreciable
property sales-JV (476) 129
Minority interest
share of
adjustments (3,662) (3,579)
--------- ------- --------- -------
Basic Funds From
Operations 88,094 146,741 $ 0.60 87,282 136,921 $ 0.64
Minority interest
in earnings of
unitholders 954 7,684 2,618 9,782
Minority interest
share of
adjustments 3,662 3,579
Other common stock
equivalents 639 1,426
--------- ------- --------- -------
Diluted Funds From
Operations $ 92,710 155,064 $ 0.60 $ 93,479 148,129 $ 0.63
========= ======= ====== ========= ======= ======
Six Months Ended
June 30,
(Unaudited)
--------------------------------------------------
2008 2007
------------------------- -------------------------
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ------- ------ --------- ------- ------
Net Income Available
for Common Shares $ 21,845 146,536 $ 0.15 $ 105,639 136,873 $ 0.77
Add back:
Minority interest
in earnings of
unitholders 1,174 7,771 7,528 9,755
Other common stock
equivalents 587 1,542
--------- ------- --------- -------
Diluted Net Income
Available for
Common Shares $ 23,019 154,894 $ 0.15 $ 113,167 148,170 $ 0.76
========= ======= ====== ========= ======= ======
Reconciliation to
Funds From Operations
("FFO")
Net Income Available
for Common Shares $ 21,845 146,536 $ 0.15 $ 105,639 136,873 $ 0.77
Adjustments:
Depreciation and
Amortization 155,696 136,146
Company Share of
Joint Venture
Depreciation
and amortization 14,319 10,578
Earnings from
depreciable
property
sales-wholly owned (10,641) (72,081)
Earnings from
depreciable
property
sales-share of
joint venture (495) (1,831)
Minority interest
share of
adjustments (7,988) (4,842)
--------- ------- --------- -------
Basic Funds From
Operations 172,736 146,536 $ 1.18 173,609 136,873 $ 1.27
Minority interest
in earnings of
unitholders 1,174 7,771 7,528 9,755
Minority interest
share of
adjustments 7,988 4,842
Other common stock
equivalents 587 1,542
--------- ------- --------- -------
Diluted Funds From
Operations $ 181,898 154,894 $ 1.17 $ 185,979 148,170 $ 1.26
========= ======= ====== ========= ======= ======
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