SOURCE: Duke Realty Corporation

Duke Realty Corporation

January 27, 2010 16:35 ET

Duke Realty Corporation Reports Fourth Quarter and Full Year 2009 Results

Liquidity Position Enhanced

2009 FFO Delivered Within Guidance

2010 FFO Guidance Issued

INDIANAPOLIS, IN--(Marketwire - January 27, 2010) - Duke Realty Corporation (NYSE: DRE), a leading industrial and office property REIT, today reported results for the fourth quarter and full year 2009.

Operating Highlights

-- Recurring funds from operations per diluted share which excludes certain
   non-recurring items ("Recurring FFO") was $0.31 for the quarter and
   $1.45 for the year; in line with guidance.  FFO including non-recurring
   items was $0.33 for the quarter and $0.06 for the year.

-- Liquidity position further enhanced during the quarter:

    -- Unsecured revolving line of credit completed; $850 million facility
       renewed through February 2013 with $200 million accordion feature;
       no balance outstanding on the line at year end;
    -- Properties and land sold; $150 million in proceeds generated in
       the fourth quarter;
    -- Available cash at year end to pay all 2010 unsecured debt
       maturities;
    -- Over $1.6 billion of capital raised during the year.

-- Positive momentum in operating performance:

    -- Overall portfolio occupancy increased to 87.8 percent;
    -- Tenant retention rate at nearly 80 percent;
    -- Positive net absorption for the quarter and over 22 million square
       feet of leases completed during the year;
    -- Total overhead expenses reduced over 10 percent year over
       year according to plan.

-- 2010 Recurring FFO guidance issued: $0.95 - $1.15 per share.

"During 2009 we made significant progress on the capital side of our business, raising over $1.6 billion. In addition, during the fourth quarter we renewed our line of credit through 2013 and had no balance outstanding on the line at year end," said Dennis D. Oklak, chairman and chief executive officer. "We also ended the year with positive leasing momentum, increasing our occupancy by 80 basis points during the fourth quarter."

Oklak continued, "As we look forward to 2010, we expect economic conditions to remain challenging; however, we will continue to execute on our operating, capital and asset strategies."

Financial Performance

--  The following table reconciles FFO, as defined by NAREIT, to
    Recurring FFO as measured by the company, for both the fourth quarter and
    years ended 2009 and 2008.
    

                                                Three Months Twelve Months
                                                    Ended        Ended
                                                December 31,  December 31,
                                                2009   2008   2009   2008
                                                -----  -----  -----  -----
FFO                                             $0.33  $0.70  $0.06  $2.51
Adjustments
 Impairment charges and
  loss on business combinations                     -   0.07   1.45   0.07
 Gains on debt transactions                         -  (0.01) (0.10) (0.01)
 Gains on preferred stock repurchases               -  (0.09)     -  (0.09)
 Valuation adjustments on deferred tax assets   (0.02)     -   0.04      -
                                                -----  -----  -----  -----
Recurring FFO                                   $0.31  $0.67  $1.45  $2.48
                                                =====  =====  =====  =====

--  Recurring FFO for the fourth quarter was $0.31 compared with $0.67 for
    the fourth quarter of 2008. The variance is primarily attributable to an
    increase in our weighted average share count due to the common equity
    offering in April 2009, gains on the sale of land and build-for-sale
    properties in the fourth quarter of 2008 and gains on the repurchase of
    preferred stock and debt in the fourth quarter of 2008. Recurring FFO for
    the year was $1.45 compared with $2.48 for 2008 and this variance was also
    primarily attributable to the same items mentioned above, causing the
    quarterly variance.  Recurring FFO includes $2.9 million ($0.01 per share)
    and $9.6 million   ($0.05 per share) of severance costs for the fourth
    quarter and year 2009, respectively.
    
--  Net income per diluted share (EPS) for fourth quarter 2009 was a loss of
    $0.02, as compared to earnings of $0.13 for the same quarter in 2008. The
    variance is primarily attributable to a gain on the repurchase of preferred
    stock and debt recognized in the fourth quarter of 2008. EPS for the year
    was a loss of $1.67 compared to earnings of $0.33 for 2008. The loss was
    primarily driven by $302.6 million of non-cash impairment charges
    recognized in 2009 and the dilution from the follow on equity offering as
    noted above.
    

Financing Transactions and Liquidity

--  The company successfully renewed its unsecured revolving credit
    facility in November 2009.  Under terms of the renewal, the facility has a
    borrowing capacity of $850 million with an interest rate on borrowings of
    275 basis points plus LIBOR, and matures in February 2013. The terms also
    include a $200 million accordion feature to increase the facility to $1.05
    billion.  There is currently no balance outstanding under the facility.
    
--  Total capital raised in 2009 exceeded $1.6 billion from equity and
    unsecured debt offerings, asset sales, and secured financing transactions.
    As of year-end 2009, the company had nearly $1 billion of liquidity
    available from its available unsecured line of credit and cash on hand.
    

Portfolio Performance

"Despite the challenging leasing markets, 2009 ended with positive momentum in operations including filling a significant portion of our speculative industrial space with long-term leases and quality tenants," said Mr. Oklak. "Our tenant retention for 2009 was nearly 80 percent and we extended near term expirations when appropriate. The decisions we made throughout 2009 will contribute positively for the future as we come out of the recession."

Specific operational highlights include:

--  Overall portfolio occupancy, including projects under development, was
    87.8 percent as of December 31, 2009, compared to 87.0 percent at September
    30, 2009.
    
--  Tenant retention for the fourth quarter and year were 79.6 percent and
    79.4 percent, respectively.
    
--  The company executed major leases for properties during the fourth
    quarter, including filling speculative industrial buildings in Columbus,
    Chicago and Atlanta totaling 2 million square feet.
    
--  Same property net operating income decreased by 5.9 percent for the
    fourth quarter of 2009, compared with the three-month period ended December
    31, 2008. Same property net operating income decreased by approximately 2.7
    percent for the 12-month period ended December 31, 2009, compared with the
    same period ended December 31, 2008, and was within expectations given the
    economic environment.
    

Real Estate Investment Activity

Development

Wholly Owned Properties

    
--  The company's wholly owned development pipeline at December 31, 2009
    consists of four significantly pre-leased projects and reflects reduced
    development volume as well as the company's focus on pre-leased projects.
    The total estimated costs of these projects upon stabilization are $122.2
    million, with $30.4 million in costs remaining to be funded.  The pipeline
    is 662,000 square feet and 97 percent pre-leased in the aggregate.
    
--  During the fourth quarter 2009, the company placed into service five
    buildings and completed one expansion on an existing industrial asset. In
    aggregate, these assets and expansion totaled 702,000 square feet and were
    83.6% pre-leased. Included in these assets were four medical office
    properties totaling approximately 280,000 square feet, which were 58.9%
    pre-leased in the aggregate, a 306,977 square foot expansion to a 100% pre-
    leased industrial building, and an 116,000 square foot, 100% pre-leased
    suburban office building.
    

Joint Venture Properties

--  The company's joint venture development pipeline at December 31,
    2009, consists of two projects which total 497,000 square feet and are 13
    percent pre-leased. The total estimated costs of these projects upon
    stabilization are $157.8 million, with $61.9 million in remaining costs to
    be funded. Each joint venture has obtained third-party debt to finance
    construction of these properties. (All joint venture costs and square
    footage are reported at 100 percent ownership.)
    
--  The company began construction of one medical office property (62,000
    square feet) that is 100% pre-leased.
    

Dispositions

Proceeds from fourth quarter non-strategic building dispositions were $144.4 million at a stabilized capitalization rate of 8.3 percent and primarily comprised of mid-west office properties. For the year ended 2009, the company received gross proceeds of $299.7 million from the sale of non-strategic properties and land parcels.

Dividends Declared

The company's board of directors declared a quarterly cash dividend on the company's common stock of $0.17 per share, or $0.68 per share on an annualized basis. The fourth quarter dividend will be payable February 26, 2010, to shareholders of record as of February 12, 2010.

The board also declared the following dividends on the company's outstanding preferred stock:

            NYSE     Quarterly
  Class    Symbol   Amount/Share     Record Date      Payment Date
--------- -------- -------------- ----------------- -----------------
Series J    DREPRJ $     0.414063 February 12, 2010 February 26, 2010
Series K    DREPRK $     0.406250 February 12, 2010 February 26, 2010
Series L    DREPRL $     0.412500 February 12, 2010 February 26, 2010
Series M    DREPRM $     0.434375    March 17, 2010    March 31, 2010
Series N    DREPRN $     0.453125    March 17, 2010    March 31, 2010
Series O    DREPRO $     0.523438    March 17, 2010    March 31, 2010

Earnings Guidance and 2010 Outlook

"As we look forward to the remainder of 2010, we expect another challenging year given the state of the economy," Oklak said. "While economic forecasts call for tepid GDP growth during 2010, unemployment remains high and is expected to worsen with nominal economic growth forecasted by the end of the year. Our earnings guidance reflects the economic environment we face as we continue to focus on improving our portfolio performance and further positioning our business for growth as the economy recovers."

The company expects Recurring FFO for 2010 to be in the range of $0.95 to $1.15 per share. The assumptions underlying Recurring FFO guidance are as follows:

--  No gains from the sale of build-for-sale properties;
--  Relatively flat occupancy performance;
--  Slightly declining same property NOI growth;
--  Dilutive effect of non-strategic property dispositions;
--  Flat new development volume; and
--  No acquisitions
    

More specific assumptions and components of 2010 Recurring FFO will be available after 6:00pm EST today through the Investor Relations section of company's web-site.

Information Regarding FFO

We compute FFO in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net income (loss) before non-controlling interest and excluding gains (losses) on sales of depreciable property and extraordinary items (computed in accordance with generally accepted accounting principles ("GAAP")); plus real estate related depreciation and amortization, and after similar adjustments for unconsolidated joint ventures. We believe FFO to be most directly comparable to net income as defined by GAAP. We believe that FFO should be examined in conjunction with net income (as defined by GAAP) as presented in the financial statements accompanying this release. FFO does not represent a measure of liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders. A reconciliation of net income per share, as defined by GAAP, to FFO per share, as defined by NAREIT, is included in the financial information accompanying this release.

For information purposes, we also provide FFO adjusted for certain non-recurring items such as impairment charges, gains (losses) on debt transactions and gains (losses) on the repurchases of preferred stock to reflect what management defines as Recurring FFO. Although our calculation of Recurring FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance. A reconciliation of FFO as defined by NAREIT to Recurring FFO is included in the Financial Performance section of this release.

About Duke Realty Corporation

Duke Realty Corporation owns and operates more than 135 million rentable square feet of industrial and office, including medical office, space in 20 U.S. cities. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke is available at www.dukerealty.com.

Fourth Quarter Earnings Call and Supplemental Information

Duke is hosting a conference call tomorrow, January 28, 2010, at 3:00 p.m. EST to discuss its fourth quarter operating results. All investors and other interested parties are invited to listen to the call. Access is available through the Investor Relations section of the company's Web site.

A copy of the company's supplemental information fact book will be available after 6:00 p.m. EST today through the Investor Relations section of the company's Web site.

Cautionary Notice Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding the company's future financial position, projected financing sources, future transactions with joint venture partners, future dividends, and future performance, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should," or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company's abilities to control or predict. Such factors include, but are not limited to, (i) general adverse economic and local real estate conditions, including the current economic recession; (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, if at all; (iv) the company's ability to raise capital by selling its assets; (v) changes in governmental laws and regulations; (vi) the level and volatility of interest rates and foreign currency exchange rates; (vii) valuation of joint venture investments, (viii) valuation of marketable securities and other investments; (ix) increases in operating costs; (x) changes in the dividend policy for the company's common stock; (xi) the reduction in the company's income in the event of multiple lease terminations by tenants; and (xii) impairment charges. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company's filings with the Securities and Exchange Commission. The company refers you to the section entitled "Risk Factors" contained in the company's Annual Report on Form 10-K for the year ended December 31, 2008. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.


                          Duke Realty Corporation
                          Statement of Operations
                            December 31, 2009
                 (In thousands, except per share amounts)

                                Quarter Ended         Twelve Months Ended
                            ----------------------  ----------------------
                                 December 31,            December 31,
                            ----------------------  ----------------------
                               2009        2008        2009        2008
                            ----------  ----------  ----------  ----------
Revenues:
  Rental and related
   revenue                  $  226,098  $  219,824  $  894,580  $  857,559
  General contractor and
   service fee revenue         114,097     162,777     449,509     434,624
                            ----------  ----------  ----------  ----------
                               340,195     382,601   1,344,089   1,292,183
                            ----------  ----------  ----------  ----------
Expenses:
  Rental expenses               50,759      48,309     203,537     191,264
  Real estate taxes             30,143      26,866     119,113     103,819
  General contractor and
   service operations
   expenses                    108,314     151,865     427,666     418,743
  Depreciation and
   amortization                 85,117      82,991     338,975     308,139
                            ----------  ----------  ----------  ----------
                               274,333     310,031   1,089,291   1,021,965
                            ----------  ----------  ----------  ----------
Other Operating Activities
  Equity in earnings of
   unconsolidated companies      2,543       6,633       9,896      23,817
  Gain on sale of
   properties                   12,337      12,400      12,337      39,057
  Earnings from sales of
   land                              -       4,160         357      12,651
  Undeveloped land carrying
   costs                        (2,757)     (2,458)    (10,403)     (8,204)
  Impairment charges                 -     (10,716)   (301,794)    (10,165)
  Other operating expenses        (174)     (2,474)     (1,017)     (8,298)
  General and
   administrative expense      (13,224)    (10,008)    (47,937)    (39,508)
                            ----------  ----------  ----------  ----------
                                (1,275)     (2,463)   (338,561)      9,350
                            ----------  ----------  ----------  ----------

      Operating income
       (loss)                   64,587      70,107     (83,763)    279,568

Other Income (Expense)
  Interest and other income
   (expense), net                  305         228       1,229       1,451
  Interest expense             (59,160)    (52,823)   (220,239)   (198,449)
  Gain (loss) on debt
   transactions                   (180)      1,953      20,700       1,953
  Loss on business
   combinations                    (63)          -      (1,062)          -
                            ----------  ----------  ----------  ----------
      Income (loss) from
       continuing
       operations before
       income taxes              5,489      19,465    (283,135)     84,523

  Income tax benefit
   (expense)                     3,128       2,090      13,348       7,005
  Valuation allowance on
   deferred tax asset            4,995           -      (7,278)          -
                            ----------  ----------  ----------  ----------
      Income (loss) from
       continuing
       operations               13,612      21,555    (277,065)     91,528

Discontinued Operations:
  Income (loss) before
   impairment and gain on
   sales                           (58)        203        (439)      3,185
  Impairment charges                 -      (1,266)       (772)     (1,266)
  Gain on sale of
   depreciable properties        1,618       5,021       6,786      16,961
                            ----------  ----------  ----------  ----------
      Income (loss) from
       discontinued
       operations                1,560       3,958       5,575      18,880

Net income (loss)               15,172      25,513    (271,490)    110,408
Dividends on preferred
 shares                        (18,362)    (18,388)    (73,451)    (71,426)
Gain on repurchase of
 preferred shares, net               -      14,046           -      14,046
Net (income) loss
 attributable to
 noncontrolling interests          157      (1,043)     11,340      (2,620)
                            ----------  ----------  ----------  ----------
      Net income (loss)
       attributable to
       common shareholders  ($   3,033) $   20,128  ($ 333,601) $   50,408
                            ==========  ==========  ==========  ==========

Basic net income (loss) per
 Common Share:
  Continuing operations
   attributable to common
   shareholders             ($    0.02) $     0.10  ($    1.70) $     0.20
  Discontinued operations
   attributable to common
   shareholders             $     0.00  $     0.03  $     0.03  $     0.13
                            ----------  ----------  ----------  ----------
Total                       ($    0.02) $     0.13  ($    1.67) $     0.33
                            ==========  ==========  ==========  ==========

Diluted net income (loss)
 per Common Share:
  Continuing operations
   attributable to common
   shareholders             ($    0.02) $     0.10  ($    1.70) $     0.20
  Discontinued operations
   attributable to common
   shareholders             $     0.00  $     0.03  $     0.03  $     0.13
                            ----------  ----------  ----------  ----------
Total                       ($    0.02) $     0.13  ($    1.67) $     0.33
                            ==========  ==========  ==========  ==========




                          Duke Realty Corporation
                    Statement of Funds From Operations
                            December 31, 2009
                 (In thousands, except per share amounts)

                                        Three Months Ended
                                           December 31,
                                            (Unaudited)
                        --------------------------------------------------
                                  2009                       2008
                        -------------------------  -----------------------
                                    Wtd.                     Wtd.
                                    Avg.     Per             Avg.     Per
                          Amount   Shares  Share   Amount   Shares   Share
                        ---------  ------- ------  -------  ------- -------
 Net Income (Loss)
  Attributable to
  Common Shares         ($  3,033)                 $20,128
 Less: Dividends on
  share based awards
  expected to vest           (391)                    (415)
                        ---------                  -------
 Net Income (Loss) Per
  Common Share- Basic      (3,424) 224,012 ($0.02)  19,713  147,615 $  0.13
 Add back:
     Noncontrolling
      interest in
      earnings of
      unitholders               -                    1,025    7,299
     Potentially
      dilutive
      securities
                        ---------  -------         -------  -------
 Net Income (Loss) Per
  Common Share- Diluted ($  3,424) 224,012 ($0.02) $20,738  154,914 $  0.13
                        =========  =======         =======  =======

 Reconciliation to
  Funds From Operations
  ("FFO")
 Net Income (Loss)
  Attributable to
  Common Shares         ($  3,033) 224,012         $20,128  147,615
 Adjustments:
     Depreciation and
      amortization         85,453                   83,996
     Company share of
      joint venture
      depreciation and
      amortization          8,953                    9,552
     Earnings from
      depreciable
      property
      sales-wholly
      owned               (13,955)                  (5,021)
     Earnings from
      depreciable
      property sales-JV         -                        -
     Noncontrolling
      interest share of
      adjustments          (2,308)                  (4,176)
                        ---------  -------         -------  -------
 Funds From Operations-
  Basic                    75,110  224,012 $ 0.34  104,479  147,615 $  0.71
     Noncontrolling
      interest in
      earnings (loss)
      of unitholders          (89)   6,617           1,025    7,299
     Joint venture
      partner
      convertible
      ownership option          -                    1,708    4,284
     Noncontrolling
      interest share of
      adjustments           2,308                    4,176
     Potentially
      dilutive
      securities                     1,352                      433
                        ---------  -------         -------  -------
 Funds From Operations-
  Diluted                  77,329  231,981 $ 0.33  111,388  159,631 $  0.70
     (Gains) losses on
      debt transactions       180                   (1,953)
     Gains on preferred
      stock repurchases         -                  (14,046)
     Impairment charges
      and loss on
      business
      combination              63                   11,431
     Change in
      valuation
      allowance on
      deferred tax
      assets               (4,995)                       -
                        ---------  -------         -------  -------
 Recurring Funds From
  Operations- Diluted   $  72,577  231,981 $ 0.31  106,820  159,631 $  0.67
                        =========  =======         =======  =======



                                       Twelve Months Ended
                                           December 31,
                                           (Unaudited)
                        --------------------------------------------------
                                  2009                       2008
                        -------------------------  -----------------------
                                    Wtd.                     Wtd.
                                    Avg.     Per             Avg.     Per
                          Amount   Shares  Share   Amount   Shares   Share
                        ---------  ------- ------  -------  ------- -------
 Net Income (Loss)
  Attributable to
  Common Shares         ($333,601)                 $50,408
 Less income allocated
  to participating
  securities               (1,759)                  (1,631)
                        ---------                  -------
 Net Income (Loss) Per
  Common Share- Basic    (335,360) 201,206 ($1.67)  48,777  146,915 $  0.33
 Add back:
     Noncontrolling
      interest in
      earnings of
      unitholders               -                    2,640    7,619
     Potentially
      dilutive
      securities                                                 19
                        ---------  -------         -------  -------
 Net Income (Loss) Per
  Common Share- Diluted ($335,360) 201,206 ($1.67) $51,417  154,553 $  0.33
                        =========  =======         =======  =======

 Reconciliation to
  Funds From Operations
  ("FFO")
 Net Income (Loss)
  Attributable to
  Common Shares         ($333,601) 201,206         $50,408  146,915
 Adjustments:
     Depreciation and
      amortization        340,126                  314,952
     Company share of
      joint venture
      depreciation and
      amortization         36,966                   38,321
     Earnings (loss)
      from depreciable
      property
      sales-wholly
      owned               (19,123)                 (16,961)
     Earnings (loss)
      from depreciable
      property sales-JV         -                     (495)
     Noncontrolling
      interest share of
      adjustments         (11,514)                 (16,527)
                        ---------  -------         -------  -------
 Funds From Operations-
  Basic                    12,854  201,206 $ 0.06  369,698  146,915 $  2.52
     Noncontrolling
      interest in
      earnings (loss)
      of unitholders      (11,099)   6,687           2,640    7,619
     Noncontrolling
      interest share of
      adjustments          11,514                   16,527
     Potentially
      dilutive
      securities                     1,104                      507
                        ---------  -------         -------  -------
 Funds From Operations-
  Diluted                  13,269  208,997 $ 0.06  388,865  155,041 $  2.51
     (Gains) losses on
      debt transactions   (20,700)                  (1,953)
     Gains on preferred
      stock repurchases         -                  (14,046)
     Impairment charges
      and loss on
      business
      combination         303,271                   11,431
     Change in
      valuation
      allowance on
      deferred tax
      assets                7,278                        -
                        ---------  -------         -------  -------
 Recurring Funds From
  Operations- Diluted   $ 303,118  208,997 $ 1.45  384,297  155,041 $  2.48
                        =========  =======         =======  =======



                          Duke Realty Corporation
                              Balance Sheet
                            December 31, 2009
                 (In thousands, except per share amounts)

                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  -----------
ASSETS:

   Rental Property                                $ 6,390,119  $ 6,297,923
   Less:  Accumulated Depreciation                 (1,311,733)  (1,167,113)
   Construction in Progress                           103,298      159,330
   Land Held for Development                          660,723      806,379
                                                  -----------  -----------
     Net Real Estate Investments                    5,842,407    6,096,519
                                                  -----------  ----------- 

   Cash                                               147,322       22,532
   Accounts Receivable                                 20,604       28,026
   Straight-line Rents Receivable                     131,934      123,863
   Receivables on Construction Contracts               18,755       75,100
   Investments in and Advances to Unconsolidated
    Companies                                         501,121      693,503
   Deferred Financing Costs, Net                       54,489       47,907
   Deferred Leasing and Other Costs, Net              371,286      369,224
   Escrow Deposits and Other Assets                   216,361      234,209
                                                  -----------  -----------

     Total Assets                                 $ 7,304,279  $ 7,690,883
                                                  ===========  ===========

LIABILITIES AND SHAREHOLDERS' EQUITY:

   Secured Debt                                   $   785,797  $   507,351
   Unsecured Notes                                  3,052,465    3,285,980
   Unsecured Line of Credit                            15,770      483,659
   Construction Payables and Amounts due
    Subcontractors                                     43,147      105,227
   Accrued Real Estate Taxes                           84,347       78,483
   Accrued Interest                                    62,971       56,376
   Accrued Expenses                                    48,758       45,059
   Other Liabilities                                  198,906      187,425
   Tenant Security Deposits and Prepaid Rents          44,258       41,348
                                                  -----------  -----------

     Total Liabilities                              4,336,419    4,790,908
                                                  -----------  -----------

   Preferred Stock                                  1,016,625    1,016,625
   Common Stock and Additional Paid-in Capital      3,269,436    2,703,997
   Accumulated Other Comprehensive Income              (5,630)      (8,652)
   Distributions in Excess of Net Income           (1,355,086)    (867,951)
                                                  -----------  -----------

     Total Shareholders' Equity                     2,925,345    2,844,019
                                                  -----------  -----------

   Non-controlling Interest                            42,515       55,956
                                                  -----------  -----------

     Total Liabilities and Equity                 $ 7,304,279  $ 7,690,883
                                                  ===========  ===========

Contact Information