![]() RELIABLE. ANSWERS. Investor Presentation Exhibit 99.1 March 8, 2012 |
![]() 40 Years Timeline 2 2011 Duke Realty Corporation RELIABLE. ANSWERS |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation 3 2009 2010 and 2011 FOCUS: Liquidity More than $1.5 billion capital raised Strategy refined FOCUS: Strategy execution Operating fundamentals Balance sheet strength FOCUS: Asset quality Cash flow growth Shareholder return Where we’ve been and where we’re going… 2012 and beyond |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation Suburban Office Market Still Challenging Economic and federal budget uncertainty limiting business investment and expansion decisions Recovery is still chugging along though, with Q4 overall vacancy declining to 12.7%, down 50 bps from previous year, with class A only space vacancy declining 80 bps from prior year Absorption for Q3 and Q4 modest, but strongest since 2007 and supply additions at record low Re-leasing capital expenditures remain elevated Medical Office Traction Remains Operators now making expansion decisions after two year pause Relationships are a key driver of on campus MOB business Demographics and economics positive growth drivers Medical office development and acquisition activity continues 4 Market Outlook Still challenging, but trends improving in all product types Industrial Market Continues Slow Recovery Net absorption in U.S. for Q4 2011 was positive for the 7th consecutive quarter Strong demand for large, modern product remains, Q4 vacancy down 230bps over prior year Rents beginning to improve, occupancy levels getting closer to equilibrium and limited new supply ISM index has been slowly climbing after a moderate trough in mid-2011 Manufacturing sector, wholesale trade and transportation realizing a majority of recent job growth Source: PPR and Duke Realty |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation Focus on: Increasing cash flow Maximizing return on assets 5 Strategy for Success Focus on: Improving coverage ratios Improving ratings Focus on: Portfolio repositioning Strategic acquisitions & dispositions Development opportunities Strategies for delivering shareholder value |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation Strategic Focus 2011 Goals and Objectives Q4 2011 Update • Lease-up portfolio, manage cap ex; reach positive same property income growth • Balance execution with capital strategy relative to level and quality of cash flow and same property NOI; Debt to EBITDA <7.0x • Development starts of $100 to $200 million focus on medical office and build-to-suit • Total portfolio occupancy as of December 31, 2011 of 90.7%; industrial portfolio at 91.9% • Approximately 5.1 million square feet of leases completed • Debt to EBITDA @ 6.0x*; 4.7% Same Property NOI growth • $12.7 million development start; a 52% pre-leased medical office • Continue strong momentum from 2010 on repositioning of portfolio • Pursue acquisitions of medical and industrial assets • Planned asset dispositions of primarily Midwest office • Closed on over $388 million of acquisitions during the quarter • $1.11 billion in dispositions of non-core assets • Closed 79 building, $1.06 billion suburban office portfolio sale to Blackstone • Opportunistically access capital markets . . . push out maturity schedule further • Continue improving our coverage ratios • Maintain minimal balance on line of credit • YTD Fixed charge ratio of 1.82x versus 1.79x for 2010 • Paid off $167 million of 3.75% Convertible Debt at maturity • Zero credit facility balance and $212MM of cash at quarter end, primarily due to proceeds from Blackstone sale • Renewed $850MM line of credit for up to 5 year term (including the 1 year extension option) at lower cost Asset Strategy Operations Strategy Capital Strategy 6 Strong Q4 finish and executing across all three aspects of our strategy * Timing of Blackstone transaction; Including adjustments to EBITDA for Blackstone transaction results in recast Debt to EBITDA of 7.03x |
![]() 2011 Duke Realty Corporation OPERATIONS STRATEGY 7 |
![]() 2011 Duke Realty Corporation 8 Focus on Fundamentals LEASING OF PORTFOLIO STRATEGIC NEW DEVELOPMENT AND LAND DISPOSITION AFFO PAYOUT OPERATIONS STRATEGY Maximize return on assets |
![]() 2011 Duke Realty Corporation 9 New, High Quality Portfolio with Long-term Leases OPERATIONS STRATEGY Premier portfolio of assets Portfolio average Bulk Industrial Suburban Office Medical Office Property age 10.6 years 13.2 years 4.1 years Property size 217,000 SF 116,000 SF 89,000 SF Lease term 7.1 years 7.3 years 11.4 years Tenant size 72,000 SF 12,000 SF 10,000 SF |
![]() Consistent Operating Performance Stabilized Occupancy (%) Strong historical stabilized occupancy – fundamentals improving Lease Renewals (%) Strong lease renewal percentages Stabilized occupancy In-service occupancy 80% 72% 79% 77% 69% 2007 2008 2009 2010 2011 29.9 21.4 22.7 25.9 2007 2008 2009 2010 2011 Leasing Activity New Leases and Renewals – Consistent Execution (in millions of square feet) Lease Maturity Schedule Lease maturities are well balanced with no one year accounting for more than 12% 24.5 OPERATIONS STRATEGY Demonstrated ability to maintain consistency through economic cycles 2011 Duke Realty Corporation 10 95% 92% 92% 89% 88% 91% 91% 89% 89% 87% |
![]() 2011 Duke Realty Corporation 1.5% (0.2%) (0.2%) 3.2% (0.6%) 0.2% (1.0%) 0.0% 1.0% 2.0% 3.0% 4.0% Suburban Office Peers Industrial Peers 5-Year Avg. 1-Year Avg. Annual Same-Store NOI Growth (1) %, y-y Sources SNL and company filings Duke Realty Suburban Office Peers (2) Industrial Peers (3) Consistent NOI Growth Outperformance Relative Performance vs. Peers OPERATIONS STRATEGY 11 1. Based on simple average of year-over-year annual same-property cash NOI growth, includes 2007 - 2011 2. Suburban Office Peers include BDN, CLI, HIW, LRY and PKY; weighted by historical market cap 3. Industrial includes DCT, EGP, FR, FPO, PSB, AMB and PLD; weighted by historical market cap Notes |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation 12 Office Average: $4,857 58.6% 46.0% 52.2% 44.8% 38.0% 41.3% 53.6% 33.9% 40.2% 43.7% 0% 20% 40% 60% 80% BDN OFC HIW CLI LRY DRE FR DCT PLD EGP 91.3% 86.5% 90.7% 94.7% 92.5% 87.9% 89.7% 88.9% 88.2% 88.3% 80% 83% 86% 89% 92% 95% LRY HIW CLI OFC BDN DRE EGP PLD DCT FR 8.9x 7.2x 7.1x 9.5x 7.3x 7.4x 6.7x 6.3x 5.0x 5.2x 0.0x 3.0x 6.0x 9.0x 12.0x OFC BDN HIW LRY CLI DRE PLD FR DCT EGP DRE Benchmarking Statistics Source: SNL Financial, 3/6/12 Industrial Average: 7.7x Industrial Average: 91.2% $27,541 Industrial Average: $8,841 Office Average: 88.6% Office Average: 6.5x Office Average: 46.0% Industrial Average: 44.1% Total Market Cap ($ in millions) (1) Total Debt / Total Market Cap Portfolio Occupancy Total Debt / 2012E EBITDA (1) Key: Office: LRY=Liberty; CLI=Mack-Cali; HIW=Highwoods; BDN=Brandywine Industrial: PLD=Prologis; FR=First Industrial; DCT=DCT Industrial Trust; EGP= Eastgroup; FPO= First Potomic (1) Pro forma for $1Bn suburban office portfolio sale to Blackstone: debt by $452MM and preferred decreased by $168MM 6,561 4,760 2,835 2,798 2,190 4,086 4,355 4,523 8,279 $0 $2,000 $4,000 $6,000 $8,000 LRY CLI OFC HIW BDN DRE PLD FR DCT EGP $28,000 |
![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation 13 Industrial Average: 15.8x Office Average: 11.1x 6.3% 5.7% 5.5% 4.9% 4.9% 4.3% 0.0% 5.4% 3.3% 4.5% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% CLI LRY BDN HIW OFC DRE DCT EGP PLD FR 8.6% 7.2% 7.3% 8.1% 6.9% 6.2% 6.1% 7.6% 7.6% 7.5% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% CLI BDN LRY HIW OFC DRE FR DCT PLD EGP 17.8x 16.1x 18.9x 28.6x 28.0x 14.4x 24.6x 21.1x 16.2x 15.6x 10.0x 14.0x 18.0x 22.0x 26.0x 30.0x LRY HIW OFC BDN CLI DRE PLD FR DCT EGP 13.3x 11.8x 11.6x 8.0x 13.3x 20.4x 14.2x 10.7x 15.7x 12.9x 6.0x 10.0x 14.0x 18.0x 22.0x LRY HIW OFC CLI BDN DRE PLD EGP DCT FR DRE Valuation Statistics Industrial Average: 25.6x Source: SNL Financial, 3/6/12 (1) Per Wall Street research as of 2/21/12 Industrial Average: 3.5% Industrial Average: 6.8% Office Average: 16.0x Office Average: 5.5% Office Average: 7.7% Price / 2012E FFO Implied Cap Rate (1) Dividend Yield Price / 2012E AFFO Key: Office: LRY=Liberty; CLI=Mack-Cali; HIW=Highwoods; BDN=Brandywine Industrial: PLD=Prologis; FR=First Industrial; DCT=DCT Industrial Trust; EGP= Eastgroup; FPO= First Potomic |
![]() 2011 Duke Realty Corporation RELIABLE. ANSWERS. 14 Positioned for NAV Growth KEY NAV GROWTH DRIVERS Lease up existing vacancy Increased management/ service fees Accretive future development Upside from land holdings Portfolio occupancy of 90.7%; 100-200 bps below historical levels Strong leasing pipeline Demonstrated track record of 70-80% renewal rate Will benefit from uptick in third party and JV partners development & construction activity Property management and leasing fees - will trend higher as occupancy improves Current pipeline of 569K SF of medical office and 344K SF of suburban office 2012 estimated development starts of $200 to $300 million Attractive basis enhances accretive developments Potential upside from impaired carrying value Will opportunistically assess development and disposition alternatives Increase Rents/ Reduced Capex Rent roll downs burning off and positive same property NOI performance Research forecasts market wide average annual rent growth of 3.2% from 2013-16 |
![]() 2011 Duke Realty Corporation 15 Land and Development Capabilities OPERATIONS STRATEGY HELD FOR DEVELOPMENT Midwest 26.3 2.8 Indianapolis, Chicago, Cincinnati, Columbus, Minneapolis, and St. Louis major positions East 3.8 2.1 New Jersey, Baltimore, Washington D.C., and Raleigh Southeast 8.5 1.3 Atlanta, Central Florida, and, South Florida Southwest 5.8 0.7 Phoenix, Dallas, and Houston Total 44.4 million SF 6.9 million SF Attractive positions contribute to future development and value Development – Amounts in million SF $498 million Office 30% Industrial 70% Office Industrial |
![]() 2011 Duke Realty Corporation 16 Atlanta - Office OPERATIONS STRATEGY Strategic new development on Duke Realty land • Headquarters Build to Suit for Primerica, A2/AA- rated financial services Company • 345,000 square feet • Fifteen year lease term • Owned land at Legacy Office Park in Gwinnett County, 37 acres • First development at this park • $65 million project |
![]() 2011 Duke Realty Corporation 17 Indianapolis – Medical Office OPERATIONS STRATEGY Grow Medical Office • Wishard Faculty Office Building • Aa2 rated system sponsored by Marion County • 275,000 square feet • Thirty year lease term • 50/50 Joint Venture with Hospital System • On campus of new hospital to open in 2013 • $90 million project |
![]() 2011 Duke Realty Corporation 18 2011 PERFORMANCE Average portfolio occupancy of 89.7% Industrial at 91.9% occupancy Nearly 25 million SF of leases executed Same property NOI increase of 3.2% 2012 GOALS Average portfolio occupancy of 91% Achieve positive rent increases on renewals Further improve lease quality (Cap Ex / NER) Strong positive same property performance…again OPERATIONS STRATEGY Quality, well-positioned assets to drive performance |
![]() 2011 Duke Realty Corporation ASSET STRATEGY 19 |
![]() 2011 Duke Realty Corporation $1 Billion 20 Track Record Flex disposition $1 Billion 2005 2006 Savannah Washington DC 2007 Healthcare 2009 Asset Strategy 2010 Dugan CBRERT Premier Suburban Office Disposition 2011 Proven ability to execute ASSET STRATEGY |
![]() 2011 Duke Realty Corporation 21 Portfolio Strategy December 31, 2011 BY PRODUCT 2009 2013 BY GEOGRAPHY ASSET STRATEGY 2009 2013 2011 Southeast 21% Southeast 24% Southeast 30% 2011 |
![]() 2011 Duke Realty Corporation 22 Asset Strategy – Quarterly Repositioning Activities ACQUISITIONS (1) DISPOSITIONS 2010 Q1 2010 $9 Q1 2010 $123 Q2 2010 28 Q2 2010 31 Q3 2010 442 Q3 2010 43 Q4 2010 440 Q4 2010 302 2010 Total $919 2010 Total $499 2011 Q1 2011 $140 Q1 2011 $456 Q2 2011 $116 Q2 2011 $ 58 Q3 2011 $103 Q3 2011 $ 6 Q4 2011 $388 Q4 2011 $1,114 2011 Total $747 2011 Total $1,634 Total $1,666 Total $2,133 (1) Stabilized Costs ASSET STRATEGY ($ in millions) |
![]() 2011 Duke Realty Corporation 23 Asset Strategy: Road Map ($ in millions) Investment 12/31/10 Investment 12/31/11 ACTION PLAN Investment 2013 PRODUCT TYPE Amount % Amount % Acquisitions / Developments / Repositioning Amount % Industrial $3,645 45% $4,129 54% $809 $4,920 60% Office 3,770 46% 2,555 33% (420) 2,050 25% Medical Office 515 6% 732 9% 498 1,230 15% Retail 280 3% 304 4% (314) 0 0% $8,210 100% $7,720 100% $573 $8,200 100 % REGION Midwest $3,970 48% $3,564 46% ($209) $3,280 40% Southeast 2,270 28% 1,839 24% 630 2,460 30% East 955 11% 1,064 14% 172 1,230 15% South 950 12% 1,091 14% (268) 820 10% West 65 1% 162 2% 248 410 5% $8,210 100% $7,720 100% $573 $8,200 100% Portfolio sale accelerates suburban office repositioning ASSET STRATEGY |
![]() 2011 Duke Realty Corporation 24 ASSET STRATEGY Asset Strategy: Progress To Date BUILDING ACQUISITIONS BUILDING DISPOSITIONS Q4 2009 15 Q4 2009 144 2010 919 2010 499 2011 747 2011 1,634 Proforma Total $1,681 Proforma Total $2,277 PRO FORMA PROGRESS TO DATE TOTAL VALUE ASSUMED DEBT NET Dispositions $2,277 ($0) $2,277 Acquisitions $1,681 ($651) $1,030 Excess Cash $1,247 Only 100 Bps difference in Cap Rates Matching acquisitions with dispositions . . . limiting earnings impact ($ in millions) |
![]() 2011 Duke Realty Corporation 25 2011 PERFORMANCE $1.6 billion of dispositions $747 million of acquisitions Over $200 million of development starts Made significant progress on strategic plan 2012 GOALS $250 million of dispositions $400 million of acquisitions $250 million of development starts Continue making progress on strategic plan ASSET STRATEGY Quality portfolio further improving with asset strategy |
![]() 2011 Duke Realty Corporation CAPITAL STRATEGY AND 2011 GUIDANCE 26 |
![]() 2011 Duke Realty Corporation Capital Strategy Focus 27 Reducing leverage Increasing coverage ratios Maintaining size and quality of unencumbered asset base Executing portfolio repositioning in alignment with capital strategy objectives Further improve balance sheet strength and ratings CAPITAL STRATEGY 1 2 3 4 |
![]() 2011 Duke Realty Corporation 28 Key Metrics & Goals 2009 Actual 2010 Actual 2011 Actual Goal Debt to Gross Assets 44.5% 46.3% 46.8% 45.0% Debt + Preferred to Gross Assets 54.9% 55.5% 55.6% 50.0% Fixed Charge Coverage Ratio 1.79 : 1 1.79 : 1 1.82 : 1 2.00 : 1 Debt/EBITDA 6.65 7.31 6.02* < 6.00 Debt + Preferred/EBITDA 8.47 8.88 7.34* < 7.75 CAPITAL STRATEGY Progressing toward strategic plan goals Timing of Blackstone transaction; Including adjustments to EBITDA for Blackstone transaction results in recast Debt to EBITDA of 7.03x and Debt+Preferred/EBITDA of 8.35x * |
![]() 2011 Duke Realty Corporation 29 CAPITAL STRATEGY Continue to execute on capital strategy objectives CAPITAL SOURCE 2007 2008 2009 2010 2011 TOTAL Common Stock $230 - $575 $311 - $1,116 Preferred Stock - $300 - - - $300 Unsecured Debt $300 $325 $500 $250 - $1,375 Secured Debt - - $270 - - $270 Asset Dispositions $785 $475 $300 $533 $1,650 $3,344 TOTAL $1,115 $1,100 $1,645 $1,094 $1,650 $6,405 • Investment grade rated debt for over 15 years • Proven access to multiple capital sources • Available line of credit - $850 million capacity • Dividend covered by AFFO Continue to strengthen balance sheet ($ in millions) |
![]() 2011 Duke Realty Corporation CAPITAL STRATEGY 30 Liquidity Position ($ in millions) Manageable debt maturities and beyond |
![]() ![]() RELIABLE. ANSWERS. 2011 Duke Realty Corporation 2012 Range of Estimates Metrics 2011 Actual Pessimistic Optimistic Key Assumptions Core FFO per share $1.15 $0.94 $1.06 - Blackstone/repositioning dilution $.10 - $.12 - Lower service operations income - Partially offset by improvement in occupancy of core portfolio AFFO Payout Ratio 87% 96% 80% - Annual dividend maintained at $0.68 per share Average Occupancy - In-Service 89.7% 89.5% 92.5% - Positive momentum anticipated given industrial and medical office perform - Lower expirations than 2011 (7% vs. 10%) - Upside to guidance driven by lease-up of portfolio Same Property NOI Growth 3.2% (1.5%) 2.5% - Occupancy increase lower than 2011 - Rental rate pressure remains Building Acquisitions $747 $300 $500 - Remain selective regarding property type and location in alignment with long-term strategy - Focus on industrial and medical office Building Dispositions $1,634 $200 $300 - Continue to prune remaining non-core office portfolio Land Sale Proceeds $12 $20 $30 - Selling 10% to 20% of identified non-strategic parcels - Demand still sluggish Construction and Development Starts $489 $300 $500 - Comprised of medical office and industrial starts - Development of $200 to $300 million - Third party of $100 to $200 million Construction Volume $727 $400 $600 - Wind down of BRAC project partially offset by development volume Service Operations Income $46 $20 $25 - Reduced fees from BRAC project General & Administrative expense $40 $43 $38 - In line with 2011 - 2012 Range - $ in millions Leasing Actions Combined with Modest Rental Rate Increases Drive Upside 31 |
![]() Strong balance sheet … executing according to strategy * Timing of Blackstone transaction; Including adjustments to EBITDA for Blackstone transaction results in recast Debt to EBITDA of 7.03x 32 2011 Duke Realty Corporation 2011 PERFORMANCE $1.6 billion of capital raised through asset dispositions Retired $333 million of unsecured bonds Redeemed $109 million of preferred equity Fixed charge ratio of 1.82x and debt to EBITDA of 6.02x* 2012 GOALS Opportunistically access capital markets Continue improving coverage ratios Maintain minimal balance on line of credit CAPITAL STRATEGY |
![]() 2011 Duke Realty Corporation MIDWEST OVERVIEW Performance Update 33 |
![]() 2011 Duke Realty Corporation 34 Midwest New Lease - Industrial Plainfield 8 – Indianapolis 250,000 SF Tenant: Gilchrist & Soames Term: 11 years Renewal - Industrial Mosteller Dist Ctr. II - Cincinnati 206,000 SF Tenant: Kellogg’s Term: 2 years Strong distribution base: Over 30% of U.S. population within one day’s drive 74 Fortune 500 headquarters High growth and return opportunities, particularly in Chicago, Columbus, and Indianapolis Duke Realty’s roots and a position of strength Original location – since 1972 Low basis product Dominant market position 46% of our total investment Acquisition - Industrial Eight Bldg Portfolio - Chicago 1,500,000 SF 100% Leased Remaining Term: 4 years MIDWEST OVERVIEW Disposition-Office Three Bldg Portfolio- Cleveland 273,000 SF 22 Year Old Portfolio MARKET OVERVIEW & KEY POINTS Committed to Midwest because we perform… Midwest remains a key component to our strategy RECENT TRANSACTIONS |
![]() 2011 Duke Realty Corporation 35 Midwest Overview Location Product Type Industrial Office Average Age 12.1 years 16.2 years Average Building Size 240,000 SF 124,000 SF Total Square Footage 55.4 million 12.4 million Current Occupancy 94.5% 83.9% Indianapolis 96.2% 91.9% Chicago 98.50% 87.8% Cincinnati 91.7% 82.4% St. Louis 87.6% 78.8% Columbus 96.8% 88.0% Minneapolis 86.0% 100% MIDWEST OVERVIEW |
![]() 2011 Duke Realty Corporation 36 Midwest Focus DOMINANT POSITION BULK INDUSTRIAL REDUCE OFFICE CONCENTRATION MIDWEST OVERVIEW Enhancing dominant industrial position in Midwest |
![]() 2011 Duke Realty Corporation EAST & SOUTHEAST OVERVIEW Performance Update 37 |
![]() 2011 Duke Realty Corporation 38 East & Southeast Overview Strong presence: entered Southeast in 1999 (Weeks merger) and East in 2006 (acquisition of Winkler portfolio) 15 Fortune 500 headquarters East and Southeast cities among top growth markets in country… strong in-migration Diversified economies; Government, healthcare, finance and education Eastern cities maintained highest employment rate through downturn Atlanta and Northeast corridor strong in bulk industrial 38% of our total investment MARKET OVERVIEW & KEY POINTS EAST & SOUTHEAST OVERVIEW Renewal– Industrial Atlantic Business Ctr South Florida Point Blank Body Armor 104,000 SF Term: 3 Years New Leases - Office Liberty Ctr I Washington DC Fortune 50 Defense Contractor 80,000 SF Term: 7 Years Renewal - Office Crabtree Overlook Raleigh 75,000 SF Tenant: Alcatel-Lucent Term: 5 Years RECENT TRANSACTIONS |
![]() East & Southeast Overview Location Product Type Industrial Office 9.5 years 10.1 years 161,000 SF 110,000 SF 28.6 million 9.7 million 86.9% 86.2% 77.2% 81.5% 83.0% 85.2% 96.6% 88.2% 91.7% 87.5% 92.2% 84.0% 91.8% NA EAST & SOUTHEAST OVERVIEW Office 39% Industrial 48% Medical Office 5% Retail 8% Atlanta 19% D.C./ Baltimore 13% Central Florida 7% Raleigh 24% South Florida 28% Savannah 9% 39 2011 Duke Realty Corporation Average Age Average Building Size Total Square Footage Current Occupancy Atlanta South Florida Raleigh Washington D.C./Baltimore Central Florida Savannah |
![]() 2011 Duke Realty Corporation 40 East & Southeast Focus BULK INDUSTRIAL/PORTS LEASE UP AND RENT GROWTH ACQUISITIONS & DEVELOPMENT EAST & SOUTHEAST OVERVIEW Maximize assets and market position |
![]() 2011 Duke Realty Corporation 41 SOUTHWEST OVERVIEW Performance Update |
![]() 2011 Duke Realty Corporation 42 Southwest Acquisition - Industrial Lakeside Ranch / Pioneer Dallas 1,400,000 SF 100% Leased Remaining Term: 5 Years Acquisition- Industrial 1283 Sherborn Street Southern California 290,000 SF 100% Leased Remaining Term: 9 Years MARKET OVERVIEW & KEY POINTS Renewal/Expansion- Industrial Freeport X Container Store Dallas 955,000 SF Duke Realty one of top 3 owner/developers in Dallas/Ft.Worth Duke Realty presence since 1999 (Weeks merger) 52 Fortune 500 headquarters Demographic drivers: modern transportation and infrastructure, population and job growth Strong industrial demand expected post-recovery Port, inland port and logistics key for bulk distribution markets 16% of our total investment Expand industrial presence by pursuing select acquisition opportunities in Houston, Phoenix and Southern California SOUTHWEST OVERVIEW RECENT TRANSACTIONS |
![]() 2011 Duke Realty Corporation SOUTHWEST OVERVIEW 43 Southwest Overview Industrial Office Average Age 8.3 years 7.3 years Average Building Size 272,000 SF 106,700 SF Total Square Footage 23.4 million 1.6 million Current Occupancy 91.8% 95.2% Dallas 89.6% 100% Nashville 95.9% 93.4% Houston 95.3% 100% Phoenix 94.4% N/A Southern California 100% N/A |
![]() 2011 Duke Realty Corporation 44 Southwest Focus DALLAS LEASE-UP HOUSTON INDUSTRIAL PORT DALLAS INLAND PORT SOUTHERN CALIFORNIA EXPANSION SOUTHWEST OVERVIEW Grow |
![]() 2011 Duke Realty Corporation 45 MEDICAL OFFICE STRATEGY & Performance Update |
![]() 2011 Duke Realty Corporation Medical Office Portfolio at December 31, 2011 46 In-Service Under Development Total Properties 38 5 43 Investment $ $625 M $106 M $731 M Square Feet 3.38 M 568 K 3.95 M Occupancy 90% 83% 89% Local 26% Regional 48% National 26% Specialty Hospital 4% MOB On- Campus 89% MOB Off-Campus 7% Portfolio investment by product type Portfolio investment by hospital system MEDICAL OFFICE STRATEGY |
![]() PIEDMONT ATLANTIC Atlanta* Birmingham Charlotte Nashville* Raleigh* NORTHEAST Baltimore* Boston Philadelphia Richmond Washington, D.C.* GREAT LAKES Chicago* Columbus* Indianapolis* Louisville Minneapolis* St. Louis* FLORIDA Jacksonville Miami Orlando* Tampa* GULF COAST ARIZONA SUN CORRIDOR NORTHERN CALIFORNIA SOUTHERN CALIFORNIA CASCADIA Megaregions by 2050: major cities that produce more than $100 billion in goods and services. Mega-regions will drive need for healthcare, transportation infrastructure and jobs through 2050 Duke Realty Markets: Demographic Focus * Duke Realty market Map Source: ATLANTA REGIONAL COMMISSION MEGAREGIONS REPORT 47 TEXAS TRIANGLE Austin* Dallas * Houston* San Antonio Populations in contiguous regions with MEDICAL OFFICE STRATEGY 2011 Duke Realty Corporation |
![]() 2011 Duke Realty Corporation 48 Healthcare Data Points The nation’s largest industry • Represents more than 17% of GDP, predicted to exceed 23% by 2020 • Americans spend more than 5% of pre-tax income on healthcare. Lower income brackets pay 15% or more ($7,800 per capita health expenditures in 2008/2009) Reform • Increased number of people insured expected to increase by 30 to 50 million – increased demand for care • Number of physicians will increase – more space demand • Hospitals expect margin pressure and need to increase market share – Hospitals seeking capital partners for “non-core assets” • May reduce reimbursements – real estate efficiency a priority – larger deals and floor plates Healthcare systems growing and physician employment changing MEDICAL OFFICE STRATEGY |
![]() 2011 Duke Realty Corporation 49 Healthcare Systems Consolidation of hospitals into systems continues Hospitals need capital and must grow market share Healthcare systems are drivers for more strategically located outpatient facilities Employment of Physicians More physicians are being employed by hospitals Hospitals and physicians are forming multi-specialty practices to prepare for improved quality and reduced reimbursement Hospitals are driving more medical office space needs for physicians Fewer Independent Community Hospitals More Physician’s Aligning with Hospitals Demand Drivers # Hospitals 5,000 MEDICAL OFFICE STRATEGY Source: Robert Kocher, MD and Nikhil R. Sahni, B.S., “Hospitals’ Race to Employ Physicians – The Logic behind a Money-Losing Proposition. ”The New England Journal of Medicine.;364:1790-1793. 12 May 2011. Physician Compensation and Production Survey, Medical Group Mgt Assoc, 2003-2009. |
![]() 2011 Duke Realty Corporation 50 Development Focus ACTION PLAN National brand awareness Be “Experts” – Speak at national conferences (ASHE, BOMA) – Third party references National system relationships – Ascension – Tenet – HCA – Adventist Regional system relationships – Baylor Health – Rex Healthcare – Carolina Healthcare Systems – Advocate System Focus MEDICAL OFFICE STRATEGY |
![]() Healthcare Projects Delivered/Acquired in 2011 Western Ridge MOB II Cincinnati, OH 29,500 SF, 80% leased New Hampton Place Snellville, GA 40,000 SF, 66% leased Rex Holly Springs MOB Raleigh, NC 30,000 SF, 100% leased Christus St. Catherine Houston, TX 169,000 SF, 96% leased Baylor Cancer Center Dallas, TX 460,000 SF, 95% leased WakeMed Brier Creek Healthplex Raleigh, NC 48,000 SF, 79% leased Cedar Park MOB Austin, TX 83,000 SF, 95% leased Christus Santa Rosa San Antonio, TX 111,000 SF, 100% leased Max Simon MOB Indianapolis, IN 85,000 SF, 100% leased Franciscan Alliance Chicago area (Hammond, IN) 195,000 SF, 100% leased MEDICAL OFFICE STRATEGY 51 2011 Duke Realty Corporation |
![]() Healthcare Projects Under Development at December 31, 2011 Baylor McKinney MOB I McKinney, TX 114,000 SF, 66% preleased WakeMed Raleigh Medical Park Raleigh, NC 86,000 SF, 58% preleased Marquette General Hospital MOB Escanaba, MI 43,000 SF, 100% preleased North Fulton MOB Atlanta, GA 52,000 SF, 52% preleased Wishard Faculty Office Building Indianapolis, IN 275,000 SF, 100% preleased MEDICAL OFFICE STRATEGY 2011 Duke Realty Corporation 52 |
![]() Existing healthcare assets $775 Million by 1/31/2012 New developments $200 Million in 2012 and 2013 Acquire $200-$250 Million in 2012 and 2013 Goal: Grow Medical Office to $1.25 Billion by 2013 MEDICAL OFFICE STRATEGY Our Plan Our Focus Growth regions (Southeast, South) Health system relationships On-campus assets Class A product (50,000 – 400,000 + square feet) National industry expert 53 2011 Duke Realty Corporation |
![]() 2011 Duke Realty Corporation 54 WHY DUKE REALTY? Quality portfolio improving with asset strategy Solid balance sheet improving with capital strategy Unmatched ability to execute on daily operations Development capabilities in place with existing land bank Talent and leadership depth to execute Delivering on what we say we will do MEDICAL OFFICE STRATEGY |
![]() Vision Road Map – Future Duke Realty Low leverage industrial and office REIT in high growth markets and product segments MEDICAL OFFICE STRATEGY What We Will Be Action Plan • Low leveraged • Move from 54% to 45% leverage Non-Strategic property and land sales • Product focused • Become bulk industrial focused Industrial: Increase from 35% to > 60% Office: Decrease from 55% to < 25% Medical: Grow from 5% to 15%+ • Concentrated in high growth markets • Align investment and resources to high growth markets; dispose/exit non -strategic areas Differentiated asset strategy within tighter geographic focus 55 2011 Duke Realty Corporation |
![]() 2011 Duke Realty Corporation APPENDIX 56 |
![]() 2011 Duke Realty Corporation EXECUTIVE TEAM 57 |
![]() 2011 Duke Realty Corporation 58 DENNIS D. OKLAK Chairman and Chief Executive Officer Denny serves as head of Duke Realty’s Executive Committee, overseeing the company’s strategic direction and its Investment Committee, with responsibility for approving major capital transactions. Prior to becoming Chief Executive Officer in April 2004, Denny served as President and Chief Operating Officer, a position in which he was responsible for all real estate operations. In the 25 years he has been with Duke Realty, Denny has served in various roles throughout the company including Executive Vice President and Chief Administrative Officer and Vice President and Treasurer. Denny spent nine years with Deloitte & Touche, a global auditing and consulting firm before joining Duke Realty. CHRISTIE B. KELLY Executive Vice President and Chief Financial Officer Christie oversees all accounting and financial reporting functions of Duke Realty, including property, operations, taxation, treasury, financial analysis, and investor relations. She joined Duke Realty in 2009, bringing with her 25 years’ experience in financial management, mergers and acquisitions, information technology and investment banking. Most recently, she was a Senior Vice President, Global Real Estate, with Lehman Brothers, where she led real estate equity syndication in the United States and Canada. She spent most of her career at General Electric, holding a variety of domestic and global leadership roles for GE Real Estate, GE Capital, GE Corporate Audit, and GE Medical Systems. EXECUTIVE |
![]() JAMES B. CONNOR Senior Regional Executive Vice President, Midwest Jim manages and leads business units in Minneapolis, St. Louis, Chicago, Indianapolis, Cincinnati, Columbus and Cleveland, and is a member of the company’s Executive, Investment and Overhead Committees. Previously, Jim served as Senior Vice President of Duke Realty’s Chicago operations, where he was responsible for that market’s office and industrial portfolios. He led and directed the leasing, acquisition and development activity, building Duke Realty’s Chicago portfolio to more than 12.8 million square feet and was awarded the 2000 Build-to-Suit of the Year and 2002 Redevelopment of the Year by the National Association of Industrial and Office Professionals (NAIOP). In 2008, he was recognized by the Society of Industrial and Office Realtors for the Largest Investment Transaction in the Country. Jim joined Duke Realty 13 years ago after holding numerous executive and brokerage positions with Cushman & Wakefield, most recently serving as Senior Managing Director for the Midwest area. CHARLES E. PODELL Senior Vice President, Indiana Operations Charlie is responsible for all development, marketing, and leasing activities for the company’s Indiana operations, comprising more than 29 million square feet of industrial and office properties. Charlie joined Duke Realty in 1989 as an Industrial Leasing Representative, later becoming Director of Leasing. In 1997, he was named Assistant Vice President, taking responsibility for the leasing and development of three industrial parks. In 2001, Charlie was promoted to Vice President of Leasing for Duke Realty’s Indiana Industrial Team. In 2006, Charlie was chosen to oversee the Duke Realty portion of the Browning/Duke Realty Joint venture. This JV is made up of more than 1,500 acres and 20 million square feet of new development. In 2009, he was named Senior Vice President of all of Duke’s Indiana operations. MIDWEST 59 2011 Duke Realty Corporation |
![]() 2011 Duke Realty Corporation 60 JON C. BURGER Senior Vice President, Cincinnati Jon is responsible for the development, construction, leasing, and management of Duke Realty’s office and industrial portfolio in Cincinnati. Previously, Jon served as Vice President, Cleveland Operations. Prior to joining Duke Realty, he was a Managing Director at Armstrong Development. He also spent 13 years as a Principal with Trammel Crow Company. STEVEN W. SCHNUR Senior Vice President, Chicago Steve is responsible for the Chicago market’s expanding office and industrial portfolios. In addition to leading the Asset Management and Leasing Operations, he works to identify new land positions, acquisition and development opportunities, and prospects for built-to-suit development. Prior to his position with Duke Realty, Steve was Director of Real Estate for Opus North Corporation, where he was responsible for the development and leasing-related activities for industrial, office and residential projects. MIDWEST |
![]() 2011 Duke Realty Corporation 61 JAMES T. CLARK Senior Vice President, Columbus Jim is responsible for all development, leasing and asset management activities for the Columbus, Ohio market. Previously as Vice President for the Columbus Office division, he oversaw leasing, development and acquisitions for Tuttle Crossing and Easton. Jim has been with the company since 1996 and has served in several different capacities including leasing, development and operations of the Columbus Office portfolio. Prior to Duke Realty, Jim worked in Columbus for The Galbreath Company. Jim has helped develop four planned office parks and was involved in significant built-to-suit projects including Discover Card, Nationwide Insurance, Lane Bryant and Alliance Data Systems. In addition, he oversaw large industrial projects for Kellogg’s, Restoration Hardware and Kraft. THOMAS (TOBY) R. MARTIN Senior Vice President, St. Louis Toby is responsible for overseeing the leasing, management, and expansion of Duke Realty’s more than 7 million-square foot St. Louis industrial and office portfolio. Before joining Duke Realty in 2008, Toby worked in the commercial real estate industry for more than 15 years. He joined Colliers Turley Martin Tucker in 1991, holding several management positions, including Senior Vice President and Management Committee member. In 2003, he founded TM Properties III, L.P., a real estate investment company focusing on industrial and retail properties in the central corridor of the United States. He operates this company, as well as TM Properties, LLC, a company founded by his father, under the name of Martin Equity Management. During his brokerage career, Toby represented landlords and tenants in hundreds of transactions involving millions of square feet of space. MIDWEST |
![]() 2011 Duke Realty Corporation 62 PAT MASCIA Senior Vice President, Minneapolis/St. Paul Pat is the business unit head responsible for the profitability and operation of Duke Realty’s Twin Cities’ office. Pat joined Duke Realty in 2004. He began his real estate career practicing real estate, real estate finance and municipal law with Briggs and Morgan, P.A. in Saint Paul for six years. He then joined Opus Corporation as Associate General Counsel, a position he held for approximately two years. Pat was later named Vice President of Dispositions, Finance, and Investments at Opus Properties, L.L.C. and held this position for approximately five years before joining Duke Realty. MIDWEST |
![]() 2011 Duke Realty Corporation 63 JEFF TURNER Regional Executive Vice President, South and West Regions Jeff has responsibility for the company’s South and West Regions, including overseeing all development, leasing, asset management, and real estate operations. Duke Realty’s South and West Regions include the cities of Dallas, Houston, Nashville, Phoenix and Seattle, where Duke Realty has nearly 23 million square feet of office and industrial properties. Jeff is also a member of the company’s Management and Investment and Executive Committees. Previously, Jeff served as Senior Vice President of Duke Realty’s Dallas operations, where his team grew the Dallas portfolio from 1.3 million square feet to more than 15 million square feet, primarily through speculative and built-to-suit development and a large joint venture with JP Morgan Investments. Prior to joining Duke Realty 13 years ago Jeff was Vice President for Paragon Group, where he was involved in industrial leasing and development for 13 years and was a National Top Producer. JEFF THORNTON Senior Vice President, Dallas Jeff is responsible for leasing, land and building acquisitions, built-to-suit and multi-tenant development projects, and overseeing the day-to-day activities of the Dallas office. Jeff joined Duke Realty in 2001 and served as Vice President of Industrial Leasing. He was responsible for the development and marketing of Duke Realty’s industrial projects in the Dallas/Fort Worth area, which totaled more than 13 million square feet. Prior to joining Duke Realty, Jeff was Leasing Manager at Insignia/ESG where he leased and sold both office and industrial properties for institutional owners including Aetna Life Insurance Company, Weingarten Realty, J.P. Morgan, John Hancock, and The Blackstone Group. SOUTHWEST |
![]() 2011 Duke Realty Corporation 64 JEFF PALMQUIST Senior Vice President, Nashville Jeff is responsible for leading and directing the leasing, property management and marketing of the existing 4.8-million square foot Nashville portfolio, as well as all new development and land and building acquisitions and dispositions. Jeff joined Duke Realty in 1995 as a Senior Leasing Representative in its Columbus office and was promoted to Vice President, Industrial Leasing in 1999. During his tenure in Columbus, Jeff was instrumental in Duke Realty’s completion of more than 7.5 million square feet of industrial development and acquisitions In 2006, Jeff relocated to Nashville to assume day-to-day responsibilities for the office. KEVIN ROGUS Senior Vice President, Phoenix Kevin is responsible for identifying opportunities and executing Duke Realty’s projects in Phoenix and expansion into new markets in the western United States. Kevin joined Duke Realty in 1985, holding various positions during his first 14 years, including Project Engineer, Preconstruction Manager, Construction Manager, and Vice President of Construction for Cincinnati operations. From 1999 to 2003, he was Senior Vice President of Duke Realty’s Construction group, with responsibility for the overall performance of all design and construction activities in Cincinnati, Ohio; Nashville, Tennessee; Raleigh, North Carolina; and Orlando, Florida. From 2003–2006, Kevin was Senior Vice President of Duke Realty’s Cincinnati, Ohio operations, where he oversaw the development, construction, leasing, and management of a 17.5 million-square foot office and industrial portfolio. SOUTHWEST |
![]() 2011 Duke Realty Corporation 65 DAVID HUDSON Senior Vice President, Houston David is responsible for new development, leasing, acquisitions, and other day-to-day activities of Duke Realty’s Houston office. Since joining the company in February 2006, David has overseen the development of more than 900,000 square feet of office and industrial properties in the Houston market and continues to search for opportunities to expand Duke Realty’s presence in Texas. Prior to Duke Realty, David worked for Trammell Crow Company, where he was responsible for the marketing and leasing of approximately 9 million square feet of office and warehouse space. Additionally, David supervised and trained marketing representatives in dealing with investors and owners of industrial properties, including several large institutional and private investors. He also has been actively involved in both built-to-suit and speculative transactions. SOUTHWEST |
![]() 2011 Duke Realty Corporation 66 J. SAMUEL O’BRIANT Regional Executive Vice President, Southeast & East Sam has overall responsibility for the company’s new investment activities and portfolio operations in its Southeast and East regions, overseeing business units in Atlanta, Savannah, Central and South Florida, Raleigh, Washington, DC, Baltimore and northern New Jersey. Duke Realty’s southeast and east property portfolios total more than 38 million square feet of office and industrial space and more than 1,400 acres of land for future development. In addition, he is a member of the company’s Executive, Investment and Operating Committees. Previously, Sam served as Regional Senior Vice President for the Southeast Region and, before that, managed the company's Atlanta and Savannah industrial business units. Before joining Duke Realty in 2004, Sam held positions with MetLife Real Estate Investments, iStar Financial, and First Industrial Realty Trust, most recently serving as Vice President of Acquisitions and Development at First Industrial. J. CHRISTOPHER BROWN Senior Vice President, Atlanta Chris is responsible for all development, marketing and leasing activities for the company’s Georgia office and industrial properties, comprising nearly 20 million square feet in metro Atlanta and Savannah. Chris joined Duke Realty in 1996 as a Financial Analyst. Between 1999 and 2004, Chris served in a variety of roles in acquisitions/dispositions, ultimately being promoted to Vice President in 2002. In 2004, Chris transferred to Leasing as a Leasing Representative for the Atlanta Industrial Group. In 2006, he was promoted to Vice President of Leasing for the Atlanta Industrial Group. In 2007, Chris was promoted to Senior Vice President, Atlanta Industrial Group and, in 2009, took the leading role in Duke Realty’s Savannah portfolio and its Atlanta suburban office portfolio. Before joining Duke Realty, Chris was a Senior Real Estate Consultant for four years and a Tax Accountant for one year with Arthur Andersen, LLP. SOUTHEAST & EAST |
![]() 2011 Duke Realty Corporation 67 DOUG IRMSCHER Senior Vice President, Central Florida Doug is responsible for the overall profitability and operations of the company’s expanding office and industrial portfolios in Orlando and Tampa. In addition, he is responsible for identifying new land positions, building acquisitions, new development and build-to-suit opportunities. Since relocating to Orlando in 2001, Doug has developed than 3 million square feet of office and industrial projects. Prior to relocating to Orlando, Doug was responsible for more than 4 million square feet of suburban office space in the Cincinnati, Ohio office. He joined the company in 1994 and has served in several different capacities on the leasing/development side of the business. JEFF SHEEHAN Senior Vice President, Raleigh Jeff is responsible for the overall operations of Duke Realty’s Raleigh office, as well as the pursuit of opportunities throughout the state. Duke Realty’s portfolio in the Triangle region is composed of 5.4 million square feet of office and industrial space. Jeff joined Duke Realty’s Executive Leadership Program in 2000., starting out as a Financial Analyst. He then transferred to Sales/Leasing as a Leasing Representative in 2002. In 2005, Jeff was promoted to Senior Leasing Representative, where he was responsible for the sales and leasing of office properties in the Triangle area. He was promoted to Vice President of Leasing in the Raleigh office in 2006, and moved into his current role in January 2007. SOUTHEAST & EAST |
![]() 2011 Duke Realty Corporation 68 ED MITCHELL Senior Vice President, South Florida Ed is responsible for the development, marketing, leasing, and management of the South Florida office, retail and industrial portfolio, which currently consists of more than 1,700,000 square feet. Duke Realty also has 155 acres of land in South Florida that will support the development of approximately 800,000 square feet of office space and 1.1 million square feet of industrial properties. Prior to joining Duke Realty in 2007, he was First Vice President with CB Richard Ellis for three years and Managing Director for four years; Director of Leasing and Development with Premier Commercial Realty for five years; and Leasing Representative and Construction Manager with Trammell Crow Company for five years. PETER SCHOLZ Senior Vice President, Washington D.C. Peter oversees the marketing, leasing, property management, acquisition, and development functions of a nearly 4.0 million-square foot industrial and office portfolio in the Washington, D.C. market. Peter joined Duke Realty in 2006 as part of The Mark Winkler Company acquisition that led to Duke Realty’s entry into the Washington, D.C. market. As a principal with and Senior Vice President of that company, Peter was responsible for directing its leasing and transaction group, serving as the liaison with third-party asset management clients, coordinating build-to-suit activities, and evaluating acquisition and disposition opportunities. Peter has more than 25 years of experience in real estate management, leasing, development, and finance, and has held positions within the Marriott Corporation and was a principal with Landstar Development Corporation prior to joining The Mark Winkler Company. SOUTHEAST & EAST |
![]() 2011 Duke Realty Corporation 69 JAMES D. BREMNER President, Healthcare Jim leads the company’s efforts in the development, ownership, leasing and management of healthcare facilities. He has 30 years of real estate experience and 15 years of dedicated healthcare experience (4 years with Duke Realty). Duke Realty entered the healthcare market in 2007 with the acquisition of Bremner Healthcare, a company Jim founded in 1986. Prior to that, Jim was a partner and President of Revel Companies, which leased and managed more than 5,000 apartment units and 4 million square feet of office space. In addition to sitting on Duke Realty’s Executive and Investment Committees, Jim brings a “hands-on” approach to the many phases of the development process, including capital analysis, ownership modeling and physician relationships. DONALD R. DUNBAR Executive Vice President, Healthcare Don is responsible for the planning, funding and execution of healthcare development projects in the Midwest and East Coast regions. His expertise in strategic planning, physician ownership modeling, and leasing services offers a distinct skill set for successful healthcare development. Don guides each project to a successful start, working with hospital personnel, the healthcare leasing team, project managers, and general contractors. Don joined the healthcare group in 1989, and has been actively involved in developing and managing real estate since 1985. HEALTHCARE |
![]() 2011 Duke Realty Corporation 70 DEENI TAYLOR Executive Vice President, Healthcare Deeni works with physicians and hospitals to understand their goals and objectives regarding their real estate. With his 25-year hospital career, Deeni’s wealth of knowledge and experience are valuable in each development project. Deeni came to the Healthcare group after serving as Chief Strategy Officer for St. Vincent Health, an Ascension Health system of 16 hospitals serving 45 counties in central Indiana. Before joining St. Vincent Health, Taylor was president of UNITY Health Management Services in Birmingham, Alabama. He also worked for St. Vincent’s Hospital in Birmingham, Alabama, as Vice President of Planning and Marketing. HEALTHCARE KEITH KONKOLI Senior Vice President, Healthcare – Midwest Keith oversees new business development, project development, asset management, and leasing for all healthcare projects in the Midwest Region. Keith ensures effective use of the company’s delivery system and ensures that funds generated from operations are maximized to grow our client base through professional development, acquisitions and third-party fees. Keith joined Duke Realty as a Senior Property Manager in the Columbus office in 1997. In 2000, he moved to Atlanta and was promoted to Vice President, Property Management. In 2004, he was named Regional Asset Manager for the Indianapolis Asset Management group and, in 2005, was promoted to Senior Vice President, Real Estate Operations. |
![]() MARK A. DENIEN Senior Vice President and Chief Accounting Officer Mark has been Senior Vice President of Accounting for Duke Realty since 2006. He joined the company six years ago as Senior Vice President of Administration. Prior to joining Duke Realty, he was with KMPG, LLP for 16 years and left the firm as a partner. RON HUBBARD Assistant Vice President, Investor Relations FINANCE Ron comes to Duke Realty with 17 years of experience in investor relations, corporate finance and financial analysis from a real estate investment management firm, a publicly-traded healthcare REIT and a big 6 CPA firm. Prior to joining Duke Realty, Ron spent 3 years with Nationwide Health Properties, a firm with investments in medical office, nursing homes and senior housing, as Vice President of Investor Relations & Capital Markets, where he was responsible for investor relations, corporate finance and project finance. Ron also spent 11 years with Pacific Life’s Real Estate Division as Managing Director of REIT Finance where he was the credit analyst and portfolio manager for $1.5 billion of REIT unsecured notes, preferred equity securities and leveraged loans. Ron holds a Masters Degree in Business with a dual major in Real Estate and Finance from the University of Wisconsin, and an undergraduate degree in Accounting from the same institution. 71 2011 Duke Realty Corporation |
![]() NICK ANTHONY Senior Vice President, Capital Transactions and JV Management As Senior Vice President, Capital Transactions and JV Management, Nick is responsible for the overall management of Duke Realty’s joint venture business, as well as acquisition and disposition activity. Previously, as Vice President of Portfolio Management, Nick was responsible for the overall management of the Dugan Joint Venture, a $1 billion industrial portfolio between J.P. Morgan and Duke Realty. He began his career with Duke Realty in 1989 as a Staff Accountant. FINANCE 72 2011 Duke Realty Corporation |
![]() Forward-Looking Statement This slide presentation contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as amended by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among others, our statements regarding (1) strategic initiatives with respect to our assets, operations and capital and (2) the assumptions underlying our expectations. Prospective investors are cautioned that any such forward- looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by forward-looking statements in this slide presentation. Many of these factors are beyond our ability to control or predict. Factors that could cause actual results to differ materially from those contemplated in this slide presentation include the factors set forth in our filings with the Securities and Exchange Commission, including our annual report on Form10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable, however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information or future developments or otherwise. Certain of the financial measures appearing in this slide presentation are or may be considered to be non- GAAP financial measures. Management believes that these non-GAAP financial measures provide additional appropriate measures of our operating results. While we believe these non-GAAP financial measures are useful in evaluating our company, the information should be considered supplemental in nature and not a substitute for the information prepared in accordance with GAAP. We have provided for your reference supplemental financial disclosure for these measures, including the most directly comparable GAAP measure and an associated reconciliation in our most recent quarter supplemental report, which is available on our website at www.dukerealty.com. Our most recent quarter supplemental report also includes the information necessary to recalculate certain operational ratios and ratios of financial position. The calculation of these non-GAAP measures may differ from the methodology used by other REITs, and therefore, may not be comparable. 73 2011 Duke Realty Corporation RELIABLE. ANSWERS. |