NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
----- ------ ------------ ----------- ------------
Series J DREPRJ $.414063 February 15, 2008 February 29, 2008
Series K DREPRK $.406250 February 15, 2008 February 29, 2008
Series L DREPRL $.412500 February 15, 2008 February 29, 2008
Series M DREPRM $.434375 March 17, 2008 March 31, 2008
Series N DREPRN $.453125 March 17, 2008 March 31, 2008
Fourth Quarter Operating Statistics
-- The Company's 688 in-service properties totaling 111.1 million square
feet were 92.7 percent leased compared to 93.5 percent and 92.8 percent
leased at September 30, 2007 and December 31, 2006, respectively.
-- The Company's value creation pipeline totaled $2.0 billion, including
$742 million of developments with an expected stabilized return of 9.0
percent that Duke plans to own indefinitely after completion; $1.0 billion
of developments with an expected stabilized return of 8.4 percent that the
Company plans to sell within approximately one year of completion; and a
$183 million backlog of third-party construction volume with an average
overall profit margin of 15.8 percent.
-- In addition to 688 in-service properties, the Company has 38
properties under development representing 10.0 million square feet that are
27.6 percent pre-leased.
-- Duke renewed 68 percent of leases up for renewal, totaling 1.3 million
square feet, on which net effective rents increased 9.0 percent.
-- Same property net operating income increased 0.8 percent for the three
months ended December 31, 2007.
-- Property sales in the fourth quarter totaled $209.3 million at an
average stabilized capitalization rate of 7.2 percent.
-- The Company completed the acquisition of an industrial portfolio
totaling $69.8 million with an overall stabilized yield of 8.6 percent.
-- The Company's interest and fixed-charge coverage ratios in the fourth
quarter were 4.0 and 2.5, respectively, and its debt-to-total market
capitalization ratio was 48.4 percent at December 31, 2007.
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 March 6, 2007 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 130 million
rentable square feet in 22 major U.S. cities. Duke, which controls
approximately 7,700 acres of land for over 113 million square feet of
future development, also provides nationwide real estate solutions through
its national development division. Duke Realty Corporation is publicly
traded on the NYSE under the symbol DRE and is included in the S&P MidCap
400 Index.
A copy of the Company's supplemental information fact book will be
available after 6:00 p.m. EST 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 fourth
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 Twelve Months Ended
December 31, December 31,
-------------------- ----------------------
Operating Results 2007 2006 2007 2006
--------- --------- ---------- ----------
Revenues from continuing
operations $ 261,384 $ 256,351 $ 923,227 $ 871,677
Earnings from rental
operations 37,610 37,154 109,079 125,514
Earnings from service
operations 25,781 34,719 52,034 53,196
Net income available for
common shareholders - Basic 58,666 50,196 217,692 145,095
Net income available for
common shareholders -
Diluted 61,964 55,038 232,091 159,333
Funds from operations
available for common
shareholders - Basic 116,750 102,788 384,032 338,008
Funds from operations
available for common
shareholders - Diluted 123,492 112,657 409,414 371,104
Per Share:
Funds from operations
available for common
shareholders - Basic $ 0.80 $ 0.76 $ 2.76 $ 2.51
Funds from operations
available for common
shareholders - Diluted $ 0.80 $ 0.76 $ 2.74 $ 2.48
Net income available for
common shareholders - Basic $ 0.40 $ 0.37 $ 1.56 $ 1.08
Net income available for
common shareholders -
Diluted $ 0.40 $ 0.37 $ 1.55 $ 1.07
Dividend payout ratio of
funds from operations 60.0% 62.5% 69.9% 76.4%
Weighted average shares
outstanding
Basic - Net income
and Funds From
Operations 145,623 134,665 139,255 134,883
Diluted - Net income
and Funds From
Operations 154,467 149,020 149,614 149,393
--------- --------- ---------- ----------
December December
31, 31,
Balance Sheet Data 2007 2006
--------- --------- ---------- ----------
Net real estate investments $6,101,332 $5,781,272
Total assets 7,661,981 7,238,595
Total debt 4,316,460 4,109,154
Shareholders' equity 2,750,033 2,503,583
Common shares outstanding at
end of period 146,175 133,921
Reconciliation of Net Income to Funds From Operations
(in thousands, except per share data)
Three Months Ended
December 31,
(Unaudited)
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ------- ------- --------- ------- -------
Net Income Available
for Common Shares $ 58,666 145,623 $ 0.40 $ 50,196 134,665 $ 0.37
Add back:
Minority
interest in
earnings of
unitholders 3,298 8,146 4,842 12,839
Other common
stock
equivalents 698 1,516
--------- ------- --------- -------
Diluted Net Income
Available for
Common Shares $ 61,964 154,467 $ 0.40 $ 55,038 149,020 $ 0.37
========= ======= ======= ========= ======= =======
Reconciliation to
Funds From
Operations ("FFO")
Net Income Available
for Common Shares $ 58,666 145,623 $ 0.40 $ 50,196 134,665 $ 0.37
Adjustments:
Depreciation and
Amortization 69,469 64,156
Company Share of
Joint Venture
Depreciation
and amortization 5,796 4,700
Earnings from
depreciable
property
sales-wholly
owned (9,321) (516)
Earnings from
depreciable
property
sales-JV (4,416) (10,721)
Minority
interest share
of adjustments (3,444) (5,027)
--------- ------- --------- -------
Basic Funds From
Operations 116,750 145,623 $ 0.80 102,788 134,665 $ 0.76
Minority
interest in
earnings of
unitholders 3,298 8,146 4,842 12,839
Minority
interest share
of adjustments 3,444 5,027
Other common
stock
equivalents 698 1,516
--------- ------- --------- -------
Diluted Funds From
Operations $ 123,492 154,467 $ 0.80 $ 112,657 149,020 $ 0.76
========= ======= ======= ========= ======= =======
Twelve Months Ended
December 31,
(Unaudited)
-----------------------------------------------------
2007 2006
-------------------------- --------------------------
Wtd. Wtd.
Avg. Per Avg. Per
Amount Shares Share Amount Shares Share
--------- ------- ------- --------- ------- -------
Net Income Available
for Common Shares $ 217,692 139,255 $ 1.56 $ 145,095 134,883 $ 1.08
Add back:
Minority
interest in
earnings of
unitholders 14,399 9,204 14,238 13,186
Other common
stock
equivalents 1,155 1,324
--------- ------- --------- -------
Diluted Net Income
Available for
Common Shares $ 232,091 149,614 $ 1.55 $ 159,333 149,393 $ 1.07
========= ======= ======= ========= ======= =======
Reconciliation to
Funds From
Operations ("FFO")
Net Income Available
for Common Shares $ 217,692 139,255 $ 1.56 $ 145,095 134,883 $ 1.08
Adjustments:
Depreciation and
Amortization 277,691 254,268
Company Share of
Joint Venture
Depreciation
and amortization 26,948 18,394
Earnings from
depreciable
property
sales-wholly
owned (121,072) (42,089)
Earnings from
depreciable
property
sales-share of
joint venture (6,244) (18,802)
Minority
interest share
of adjustments (10,983) (18,858)
--------- ------- --------- -------
Basic Funds From
Operations 384,032 139,255 $ 2.76 338,008 134,883 $ 2.51
Minority
interest in
earnings of
unitholders 14,399 9,204 14,238 13,186
Minority
interest share
of adjustments 10,983 18,858
Other common
stock
equivalents 1,155 1,324
--------- ------- --------- -------
Diluted Funds From
Operations $ 409,414 149,614 $ 2.74 $ 371,104 149,393 $ 2.48
========= ======= ======= ========= ======= =======
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