Exhibit 99.1
News Release
FOR IMMEDIATE RELEASE
DUKE REALTY CORPORATION REPORTS
THIRD QUARTER RESULTS
Liquidity further enhanced through $500 million unsecured debt offering
and tender offer for near term bonds
2009 guidance reaffirmed
(INDIANAPOLIS, October 28, 2009) – Duke Realty Corporation (NYSE: DRE), a leading industrial and office property REIT, today reported results for the third quarter 2009.
Operating Highlights
| | • | | Funds from operations per diluted share (“FFO”) for the quarter was income of $0.32, excluding the effects of impairment and related charges as well as losses on debt transactions. With the effects of these items, FFO for the quarter was a loss of $1.02, which includes the effects of $297.1 million of non-cash impairment and related charges and $13.6 million of losses on debt transactions. |
| | • | | Impairment charges primarily recognized as a result of further refinements in strategy including planned reductions in undeveloped land inventory in light of lower anticipated development volume and the targeting of non-strategic property dispositions to further align focus on high growth markets with an emphasis on industrial and medical properties. |
| | • | | Liquidity position was further enhanced during the quarter to $1.5 billion (based upon available line of credit balance and cash on hand) : |
| | • | | $500.0 million unsecured bonds issued in August; |
| | • | | $351.9 million par value of unsecured debt obligations repurchased; and |
| | • | | $114.0 million secured financing closed in July. |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
Page 2 of 10
| | • | | Capital raised year to date through September 2009 of nearly $1.5 billion; all remaining 2009 and 2010 unsecured debt maturities addressed with available cash. |
| | • | | 2009 FFO guidance reaffirmed at the lower end of the $1.42 - $1.64 per share range as adjusted for the additional shares issued in the April 2009 common stock offering. |
“We have continued to access the capital markets, have now addressed all of our near-term obligations and remain focused on deleveraging our balance sheet,” said Dennis D. Oklak, chairman and chief executive officer. “Our core operating portfolio has held up reasonably well during the last twelve months. We are focused on leasing our recently placed in service development projects and strategically reducing our undeveloped land inventory in light of lower anticipated development volume for the foreseeable future.”
Financial Performance
| | • | | FFO for the third quarter of 2009 was a loss of $1.02 compared to income of $0.65 for the third quarter of 2008. Third quarter 2009 FFO included non-cash impairment and related charges of $297.1 million ($1.28 per share), and $13.6 million ($0.06 per share) of losses on debt transactions. Excluding the impact of these items, FFO was $0.32 for the third quarter of 2009. |
| | • | | Net income per diluted share (EPS) for third quarter 2009 was a loss of $1.44, as compared to earnings of $0.08 for the same quarter in 2008. The loss was primarily attributable to the impairment and other non-cash charges and losses on debt transactions recognized in the third quarter of 2009. |
Capital Markets
During the third quarter 2009, the company successfully refinanced, extended and obtained new financings, including:
| | • | | Completed a $500 million unsecured debt offering consisting of $250 million of 7.375% (7.50% effective interest rate) notes due 2015 and $250 million of 8.25% (8.375% effective interest rate) notes due 2019. |
| | • | | Repurchased $206.8 million face value of its December 2011 exchangeable notes. |
| | • | | Repurchased $145.1 million of unsecured bonds through a tender offer comprised of the following: |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
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| | • | | $39.3 million of its 7.75% November 2009 senior notes; |
| | • | | $57.9 million of its 5.25% January 2010 senior notes; and |
| | • | | $47.9 million of its 6.95% March 2011 senior notes |
| | • | | Closed on a $114 million, 10-year, interest only secured loan bearing interest at 7.75%. The loan is secured by a portfolio of suburban office and industrial assets. |
| | • | | Recognized $13.6 million of losses on debt transactions, comprised of a $6.5 million commitment fee paid to terminate a previously announced $280 million secured debt transaction, and approximately $7.1 million in book losses on unsecured notes repurchased either through a cash tender offer transaction or open market purchases during the quarter. |
As a result of these and previously announced capital transactions, the company has nearly $1.5 billion of available liquidity as of September 30, 2009, including $1.3 billion of availability on its credit facility and $155 million of cash. All remaining 2009 and 2010 unsecured debt maturities will be repaid with available cash.
Portfolio Performance
| | • | | Overall portfolio occupancy, including projects under development, was 87.0 percent as of September 30, 2009, compared to 87.4 percent at June 30, 2009. |
| | • | | Stabilized, in-service properties (130 million square feet) were 87.7 percent leased at September 30, 2009, compared with 88.5 percent at June 30, 2009. This decrease is primarily attributable to the addition of 6 recently developed properties aggregating nearly 1.5 million square feet which were 55.6 percent leased at September 30, 2009. The company classifies a property as stabilized upon the earlier of its reaching 90% occupancy or one year after its in-service date. The decrease in stabilized occupancy as a result of these newly developed assets was anticipated by the company. |
| | • | | Tenant retention for the third quarter of 2009 was 85.0 percent with a slight decrease in net effective rents on renewals of 0.8 percent. |
| | • | | Same property net operating income decreased by 5.6 percent for the third quarter of 2009, compared with the three-month period ended September 30, 2008. Same property net operating income decreased by approximately 0.5 percent for the 12-month period ended September 30, 2009, compared with the 12-month period ended September 30, 2008. |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
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| | Core operations results were consistent with forecasts and in line with expectations. |
Real Estate Investment Activity
Development
Wholly Owned Properties
| | • | | The company’s wholly owned development pipeline at September 30, 2009, consisted mostly of projects that are in the final stages of completion. The total estimated costs of these projects upon stabilization are $223.6 million, with $71.1 million in costs remaining to be funded. The pipeline is 1.4 million square feet comprised of 9 properties and one building expansion, which are 92 percent pre-leased in the aggregate. |
| | • | | The company placed into service two healthcare properties totaling 250,000 square feet, which were 82% pre-leased in the aggregate, and a 146,000 square foot, 100% pre-leased suburban office building. |
| | • | | The company began construction of one medical office property (45,000 square feet) that is 62% pre-leased. |
Joint Venture Properties
| | • | | The company’s joint venture development pipeline at September 30, 2009, consists of three projects which total 1.1 million square feet and are 28 percent pre-leased. The total estimated costs of these projects upon stabilization are $337.9 million, with $95.4 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.) |
Real Estate Valuation – Impairment and Other Charges
During the third quarter of 2009, the company recorded non-cash impairment and related charges of $297.1 million.
Components of these charges were as follows:
| | • | | Impairment of land holdings targeted for disposition of $132.0 million; |
| | • | | Impairment of operating and under development properties of $70.7 million; |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
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| | • | | Impairment of investment in 3630 Peachtree joint venture in Atlanta, Georgia of $50.7 million; |
| | • | | Impairment of other real estate assets of $31.4 million; and |
| | • | | Reserves of deferred tax assets of $12.3 million. |
These charges were primarily triggered as a result of further refinements in strategy including planned reductions in undeveloped land inventory in light of lower anticipated development volume and the targeting of non-strategic property dispositions. These impairment charges rely upon many subjective assumptions, such as intended holding periods, future capitalization rates and rental rates, used in applying relevant accounting rules. These non-cash charges have no effect on liquidity, and have no significant impact on compliance with the company’s credit facility or unsecured bond covenants.
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 third quarter dividend will be payable November 30, 2009, to shareholders of record as of November 13, 2009. The company’s policy is to pay aggregate annual dividends in 2009 in an amount generally equal to and not to exceed its estimated annual taxable income.
The board also declared the following dividends on the company’s outstanding preferred stock:
| | | | | | | | |
Class | | NYSE Symbol | | Quarterly Amount/Share | | Record Date | | Payment Date |
Series J | | DREPRJ | | $0.414063 | | November 16, 2009 | | November 30, 2009 |
Series K | | DREPRK | | $0.406250 | | November 16, 2009 | | November 30, 2009 |
Series L | | DREPRL | | $0.412500 | | November 16, 2009 | | November 30, 2009 |
Series M | | DREPRM | | $0.434375 | | December 17, 2009 | | December 31, 2009 |
Series N | | DREPRN | | $0.453125 | | December 17, 2009 | | December 31, 2009 |
Series O | | DREPRO | | $0.523438 | | December 17, 2009 | | December 31, 2009 |
Earnings Guidance
The company reaffirmed FFO guidance for 2009 in the range of $1.42 - $1.64, as adjusted for the additional shares issued in the April 2009 common stock offering. As previously discussed in the second quarter of 2009, it is anticipated that the FFO per share will be at the lower end of guidance based upon current expectations of leasing volumes and the timing of potential transactions expected to occur in the fourth quarter of 2009. Guidance reflects $6.7 million ($0.035 per share) of severance costs incurred through
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
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September 30, 2009, and excludes the effects of impairment and other non-cash charges as well as gains or losses on debt transactions.
About Duke Realty Corporation
Duke Realty Corporation owns and operates approximately 136 million rentable square feet of industrial and 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 atwww.dukerealty.com.
Third Quarter Earnings Call and Supplemental Information
Duke is hosting a conference call tomorrow, October 29, 2009, at 3:00 p.m. EDT to discuss its third 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. EDT 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
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
Page 7 of 10
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.
Contact Information:
Media:
Jim Bremner
317.808.6920
jim.bremner@dukerealty.com
Investors:
Randy Henry
317.808.6060
randy.henry@dukerealty.com
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
Page 8 of 10
Duke Realty Corporation
Statement of Operations
September 30, 2009
(In thousands, except per share amounts)
| | | | | | | | | | | | | | | | |
| | | Quarter Ended
September 30, | | | Nine Months Ended
September 30, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
Revenues: | | | | | | | | | | | | | | | | |
Rental and related revenue | | $ | 224,013 | | | $ | 215,264 | | | $ | 669,713 | | | $ | 638,512 | |
General contractor and service fee revenue | | | 100,880 | | | | 93,316 | �� | | | 335,412 | | | | 271,847 | |
| | | | | | | | | | | | | | | | |
| | | 324,893 | | | | 308,580 | | | | 1,005,125 | | | | 910,359 | |
| | | | | | | | | | | | | | | | |
Expenses: | | | | | | | | | | | | | | | | |
Rental expenses | | | 49,921 | | | | 48,045 | | | | 153,081 | | | | 143,198 | |
Real estate taxes | | | 30,096 | | | | 25,750 | | | | 89,181 | | | | 77,012 | |
General contractor and service operations expenses | | | 96,241 | | | | 96,155 | | | | 319,352 | | | | 266,878 | |
Depreciation and amortization | | | 87,647 | | | | 74,229 | | | | 254,325 | | | | 225,358 | |
| | | | | | | | | | | | | | | | |
| | | 263,905 | | | | 244,179 | | | | 815,939 | | | | 712,446 | |
| | | | | | | | | | | | | | | | |
Other Operating Activities | | | | | | | | | | | | | | | | |
Equity in earnings of unconsolidated companies | | | 2,364 | | | | 204 | | | | 7,353 | | | | 17,184 | |
Gain on sale of Build-for-Sale properties | | | — | | | | 20,338 | | | | — | | | | 26,657 | |
Earnings from sales of land | | | — | | | | 4,469 | | | | 357 | | | | 8,491 | |
Undeveloped land carrying costs | | | (2,601 | ) | | | (1,686 | ) | | | (7,646 | ) | | | (5,746 | ) |
Impairment charges | | | (284,845 | ) | | | 0 | | | | (301,794 | ) | | | 0 | |
Other operating expenses | | | (323 | ) | | | (2,474 | ) | | | (843 | ) | | | (5,273 | ) |
General and administrative expense | | | (11,233 | ) | | | (10,448 | ) | | | (34,713 | ) | | | (29,500 | ) |
| | | | | | | | | | | | | | | | |
| | | (296,638 | ) | | | 10,403 | | | | (337,286 | ) | | | 11,813 | |
| | | | | | | | | | | | | | | | |
Operating income | | | (235,650 | ) | | | 74,804 | | | | (148,100 | ) | | | 209,726 | |
| | | | |
Other Income (Expense) | | | | | | | | | | | | | | | | |
Interest and other income (expense), net | | | 796 | | | | 205 | | | | 924 | | | | 1,223 | |
Interest expense | | | (57,719 | ) | | | (50,071 | ) | | | (161,746 | ) | | | (146,001 | ) |
Gain (loss) on debt transactions | | | (13,631 | ) | | | — | | | | 20,880 | | | | — | |
Loss on business combinations | | | — | | | | — | | | | (999 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations before income taxes | | | (306,204 | ) | | | 24,938 | | | | (289,041 | ) | | | 64,948 | |
| | | | |
Income tax benefit (expense) | | | 4,326 | | | | 4,239 | | | | 10,220 | | | | 4,915 | |
Valuation allowance on deferred tax asset | | | (12,273 | ) | | | — | | | | (12,273 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Income (loss) from continuing operations | | | (314,151 | ) | | | 29,177 | | | | (291,094 | ) | | | 69,863 | |
| | | | |
Discontinued Operations: | | | | | | | | | | | | | | | | |
Income before impairment and gain on sales | | | — | | | | 466 | | | | 36 | | | | 3,092 | |
Impairment charges | | | — | | | | — | | | | (772 | ) | | | — | |
Gain on sale of depreciable properties | | | 0 | | | | 1,299 | | | | 5,168 | | | | 11,940 | |
| | | | | | | | | | | | | | | | |
Income (loss) from discontinued operations | | | — | | | | 1,765 | | | | 4,432 | | | | 15,032 | |
Net income (loss) | | | (314,151 | ) | | | 30,942 | | | | (286,662 | ) | | | 84,895 | |
Dividends on preferred shares | | | (18,363 | ) | | | (18,866 | ) | | | (55,089 | ) | | | (53,038 | ) |
Net (income) loss attributable to noncontrolling interests | | | 9,632 | | | | (586 | ) | | | 11,583 | | | | (1,577 | ) |
| | | | | | | | | | | | | | | | |
Net income (loss) attributable to common shareholders | | | ($322,882 | ) | | $ | 11,490 | | | | ($330,168 | ) | | $ | 30,280 | |
| | | | | | | | | | | | | | | | |
Basic net income (loss) per Common Share: | | | | | | | | | | | | | | | | |
Continuing operations attributable to common shareholders | | | ($1.44 | ) | | $ | 0.07 | | | | ($1.73 | ) | | $ | 0.10 | |
Discontinued operations attributable to common shareholders | | $ | 0.00 | | | $ | 0.01 | | | $ | 0.02 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | |
Total | | | ($1.44 | ) | | $ | 0.08 | | | | ($1.71 | ) | | $ | 0.20 | |
| | | | | | | | | | | | | | | | |
Diluted net income (loss) per Common Share: | | | | | | | | | | | | | | | | |
Continuing operations attributable to common shareholders | | | ($1.44 | ) | | $ | 0.07 | | | | ($1.73 | ) | | $ | 0.10 | |
Discontinued operations attributable to common shareholders | | $ | 0.00 | | | $ | 0.01 | | | $ | 0.02 | | | $ | 0.10 | |
| | | | | | | | | | | | | | | | |
Total | | | ($1.44 | ) | | $ | 0.08 | | | | ($1.71 | ) | | $ | 0.20 | |
| | | | | | | | | | | | | | | | |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
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Duke Realty Corporation
Statement of Funds From Operations
September 30, 2009
(In thousands, except per share amounts)
| | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30,
(Unaudited) |
| | | 2009 | | | 2008 |
| | | Amount | | | Wtd.
Avg.
Shares | | Per
Share | | | Amount | | | Wtd.
Avg.
Shares | | Per
Share |
Net Income (Loss) Attributable to Common Shares | | | ($322,882 | ) | | | | | | | | $ | 11,490 | | | | | | |
Less: Dividends on share based awards expected to vest | | | (391 | ) | | | | | | | | | (409 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Per Common Share - Basic | | | (323,273 | ) | | 223,952 | | ($ | 1.44 | ) | | | 11,081 | | | 146,966 | | $ | 0.08 |
Add back: | | | | | | | | | | | | | | | | | | | |
Noncontrolling interest in earnings of unitholders | | | — | | | | | | | | | | 605 | | | 7,638 | | | |
Other common stock equivalents | | | | | | | | | | | | | | | | 232 | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Per Common Share - Diluted | | | ($323,273 | ) | | 223,952 | | ($ | 1.44 | ) | | $ | 11,686 | | | 154,836 | | $ | 0.08 |
| | | | | | | | | | | | | | | | | | | |
Reconciliation to Funds From Operations (“FFO”) | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Attributable to Common Shares | | | ($322,882 | ) | | 223,952 | | | | | | $ | 11,490 | | | 146,966 | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Depreciation and Amortization | | | 87,647 | | | | | | | | | | 75,260 | | | | | | |
Company Share of Joint Venture Depreciation and amortization | | | 8,543 | | | | | | | | | | 14,450 | | | | | | |
Earnings from depreciable property sales-wholly owned | | | — | | | | | | | | | | (1,299 | ) | | | | | |
Earnings from depreciable property sales-JV | | | — | | | | | | | | | | — | | | | | | |
Noncontrolling interest share of adjustments | | | (2,771 | ) | | | | | | | | | (4,363 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | |
Funds From Operations - Basic | | | (229,463 | ) | | 223,952 | | ($ | 1.02 | ) | | | 95,538 | | | 146,966 | | $ | 0.65 |
Noncontrolling interest in earnings of unitholders | | | (9,545 | ) | | 6,646 | | | | | | | 605 | | | 7,638 | | | |
Noncontrolling interest share of adjustments | | | 2,771 | | | | | | | | | | 4,363 | | | | | | |
Other common stock equivalents | | | | | | | | | | | | | | | | 740 | | | |
| | | | | | | | | | | | | | | | | | | |
Funds From Operations - Diluted | | | (236,237 | ) | | 230,598 | | ($ | 1.02 | ) | | | 100,506 | | | 155,344 | | $ | 0.65 |
Add loss on debt transactions | | | 13,631 | | | | | | | | | | — | | | | | | |
Add impairment charges | | | 284,845 | | | | | | | | | | — | | | | | | |
Add valuation allowance on deferred tax asset | | | 12,273 | | | | | | | | | | — | | | | | | |
Other common stock equivalents | | | | | | 1,073 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Adjusted Funds From Operations - Diluted | | $ | 74,512 | | | 231,671 | | $ | 0.32 | | | | 100,506 | | | 155,344 | | $ | 0.65 |
| | | | | | | | | | | | | | | | | | | |
| |
| | | Nine Months Ended
September 30,
(Unaudited) |
| | | 2009 | | | 2008 |
| | | Amount | | | Wtd.
Avg.
Shares | | Per
Share | | | Amount | | | Wtd.
Avg.
Shares | | Per
Share |
Net Income (Loss) Attributable to Common Shares | | | ($330,168 | ) | | | | | | | | $ | 30,280 | | | | | | |
Less income allocated to participating securities | | | (1,366 | ) | | | | | | | | | (1,218 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Per Common Share - Basic | | | (331,534 | ) | | 193,520 | | ($ | 1.71 | ) | | | 29,062 | | | 146,680 | | $ | 0.20 |
Add back: | | | | | | | | | | | | | | | | | | | |
Noncontrolling interest in earnings of unitholders | | | — | | | | | | | | | | 1,615 | | | 7,727 | | | |
Other common stock equivalents | | | | | | | | | | | | | | | | 216 | | | |
| | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Per Common Share - Diluted | | | ($331,534 | ) | | 193,520 | | ($ | 1.71 | ) | | $ | 30,677 | | | 154,623 | | $ | 0.20 |
| | | | | | | | | | | | | | | | | | | |
Reconciliation to Funds From Operations (“FFO”) | | | | | | | | | | | | | | | | | | | |
Net Income (Loss) Attributable to Common Shares | | | ($330,168 | ) | | 193,520 | | | | | | $ | 30,280 | | | 146,680 | | | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Depreciation and Amortization | | | 254,673 | | | | | | | | | | 230,956 | | | | | | |
Company Share of Joint Venture Depreciation and amortization | | | 28,013 | | | | | | | | | | 28,769 | | | | | | |
Earnings (loss) from depreciable property sales-wholly owned | | | (5,168 | ) | | | | | | | | | (11,940 | ) | | | | | |
Earnings (loss) from depreciable property sales-JV | | | — | | | | | | | | | | (495 | ) | | | | | |
Noncontrolling interest share of adjustments | | | (9,302 | ) | | | | | | | | | (12,351 | ) | | | | | |
| | | | | | | | | | | | | | | | | | | |
Funds From Operations - Basic | | | (61,952 | ) | | 193,520 | | ($ | 0.32 | ) | | | 265,219 | | | 146,680 | | $ | 1.81 |
Noncontrolling interest in earnings of unitholders | | | (11,410 | ) | | 6,711 | | | | | | | 1,615 | | | 7,727 | | | |
Noncontrolling interest share of adjustments | | | 9,302 | | | | | | | | | | 12,351 | | | | | | |
Other common stock equivalents | | | | | | | | | | | | | | | | 698 | | | |
| | | | | | | | | | | | | | | | | | | |
Funds From Operations - Diluted | | | (64,060 | ) | | 200,231 | | ($ | 0.32 | ) | | | 279,185 | | | 155,105 | | $ | 1.80 |
Less gain on debt transactions | | | (20,880 | ) | | | | | | | | | — | | | | | | |
Add impairment charges and net loss on business combination | | | 303,208 | | | | | | | | | | — | | | | | | |
Add valuation allowance on deferred tax asset | | | 12,273 | | | | | | | | | | — | | | | | | |
Other common stock equivalents | | | | | | 883 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Adjusted Funds From Operations - Diluted | | $ | 230,541 | | | 201,114 | | $ | 1.15 | | | | 279,185 | | | 155,105 | | $ | 1.80 |
| | | | | | | | | | | | | | | | | | | |
Duke Realty Corporation Reports Third Quarter Results
October 28, 2009
Page 10 of 10
Duke Realty Corporation
Balance Sheet
September 30, 2009
(In thousands, except per share amounts)
| | | | | | | | |
| | | September 30,
2009 | | | December 31,
2008 | |
ASSETS: | | | | | | | | |
Rental Property | | $ | 6,432,630 | | | $ | 6,297,923 | |
Less: Accumulated Depreciation | | | (1,274,728 | ) | | | (1,167,113 | ) |
Construction in Progress | | | 144,748 | | | | 159,330 | |
Land Held for Development | | | 666,175 | | | | 806,379 | |
| | | | | | | | |
Net Real Estate Investments | | | 5,968,825 | | | | 6,096,519 | |
| | | | | | | | |
Cash | | | 155,914 | | | | 22,532 | |
Accounts Receivable | | | 23,880 | | | | 28,026 | |
Straight-line Rents Receivable | | | 132,763 | | | | 123,863 | |
Receivables on Construction Contracts | | | 32,446 | | | | 75,100 | |
Investments in and Advances to Unconsolidated Companies | | | 483,882 | | | | 693,503 | |
Deferred Financing Costs, Net | | | 45,997 | | | | 47,907 | |
Deferred Leasing and Other Costs, Net | | | 382,784 | | | | 369,224 | |
Escrow Deposits and Other Assets | | | 212,455 | | | | 234,209 | |
| | | | | | | | |
Total Assets | | $ | 7,438,946 | | | $ | 7,690,883 | |
| | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY: | | | | | | | | |
Secured Debt | | $ | 783,425 | | | $ | 507,351 | |
Unsecured Notes | | | 3,133,879 | | | | 3,285,980 | |
Unsecured Line of Credit | | | 15,299 | | | | 483,659 | |
Construction Payables and Amounts due Subcontractors | | | 66,790 | | | | 105,227 | |
Accrued Real Estate Taxes | | | 114,529 | | | | 78,483 | |
Accrued Interest | | | 40,701 | | | | 56,376 | |
Accrued Expenses | | | 35,815 | | | | 45,059 | |
Other Liabilities | | | 203,426 | | | | 187,425 | |
Tenant Security Deposits and Prepaid Rents | | | 37,142 | | | | 41,348 | |
| | | | | | | | |
Total Liabilities | | | 4,431,006 | | | | 4,790,908 | |
| | | | | | | | |
Preferred Stock | | | 1,016,625 | | | | 1,016,625 | |
Common Stock and Additional Paid-in Capital | | | 3,267,510 | | | | 2,703,997 | |
Accumulated Other Comprehensive Income | | | (6,440 | ) | | | (8,652 | ) |
Distributions in Excess of Net Income | | | (1,313,103 | ) | | | (867,951 | ) |
| | | | | | | | |
Total Shareholders’ Equity | | | 2,964,592 | | | | 2,844,019 | |
| | | | | | | | |
Non-controlling Interest | | | 43,348 | | | | 55,956 | |
| | | | | | | | |
Total Liabilities and Equity | | $ | 7,438,946 | | | $ | 7,690,883 | |
| | | | | | | | |
