![]() REIT WEEK: 2013 NAREIT Investor Forum June 5-6, 2013 Exhibit 99.1 |
![]() 2013 Duke Realty Corporation 2 40 Years Timeline RELIABLE. ANSWERS. |
![]() 2013 Duke Realty Corporation 3 Three-Pronged Strategy for Success Strategies for delivering shareholder value RELIABLE. ANSWERS. |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation Strategic Focus 2013 Goals and Objectives 2013 Update • Lease-up portfolio, manage cap ex; continue positive same property income growth • Focus on rent growth to continue to drive same property NOI growth • Development starts of $400 to $500 million focus on industrial and medical office • Total portfolio occupancy as of quarter end 91.8%; industrial portfolio at 93.1%; medical office at 92.4% • Approximately 6.4 million square feet of leases completed in Q1 • 2.6% same property NOI growth • $139MM development starts. Two bulk industrial projects 74% leased (at 8.6% yield), four 100% leased medical office (7.9% yield) and one 100% leased office (7.7% yield) • Continue strong momentum from 2012 on repositioning of portfolio • Pursue acquisitions of industrial assets • Continue pruning suburban office primarily in Midwest • Closed on $30MM of acquisitions during the quarter, weighted 26% industrial and 74% medical; In May, closed on $312MM acquisition of eight, class A bulk industrial facilities (“USAA”) • $223MM in dispositions of primarily suburban office assets in Q1 • Disposed of Pembroke Pines retail center in May for $188 million • Opportunistically access capital markets . . . push out debt maturity schedule further • Continue improving coverage ratios • Maintain minimal balance on line of credit • Debt to EBITDA @ 7.25x; Fixed charge ratio of 1.86x, improved from prior year • Issued $572MM of equity at a $14.25 share price • Issued $250MM of senior notes at a 3.625% coupon maturing 2023 • Redeemed $178MM of 8.375% Series O Preferred shares • Zero credit facility balance and $307MM of cash at quarter end • Closed on a $250MM 5 year term loan at LIBOR+1.35% in May 4 Solid start and executing across all three aspects of our strategy Operations Strategy Asset Strategy Asset Strategy Capital Strategy |
![]() 2013 Duke Realty Corporation OPERATIONS STRATEGY 5 |
![]() 2013 Duke Realty Corporation Consistent Operating Performance Stabilized Occupancy (%) Strong historical occupancy – fundamentals solid Lease Renewals (%) Strong lease renewal percentages Total occupancy In-service occupancy 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 11% 88% 89% 87% 91% 91% 89% 89% 87% 6 OPERATIONS STRATEGY 93% 72% 79% 77% 69% 83% 21.4 22.7 25.9 24.5 29.3 92% 92% 2008 2009 2010 2011 2012 Q1 2013 92% 49% 2008 2009 2010 2011 2012 Q1 2013 6.4 2008 2009 2010 2011 2012 Q1 2013 7% 10% 10% 11% 11% 10% 8% 33% 2013 2014 2015 2016 2017 2018 2019 2020+ Demonstrated ability to maintain consistency through economic cycles |
![]() 2013 Duke Realty Corporation 1. 2. 3. Notes Sources SNL and company filings Duke Realty Suburban Office Peers (2) Industrial Peers (3) Consistent NOI Growth Outperformance Relative Performance vs. Peers OPERATIONS STRATEGY 7 1.4% (0.3%) (0.8%) 2.5% 1.0% 2.0% (1.0%) 0.0% 1.0% 2.0% 3.0% 4.0% 5-Year Avg. 1-Year Avg. Annual Same-Store NOI Growth (1) Based on simple average of calendar year-over-year annual same-property cash NOI growth. Five year analysis measures 2008 - 2012 Suburban Office Peers include BDN, CLI, HIW, OFC and LRY; weighted by historical market cap Industrial includes DCT, EGP, FR, AMB and PLD; weighted by historical market cap |
![]() 2013 Duke Realty Corporation 8 Positioned for NAV Growth KEY NAV GROWTH DRIVERS Lease-Up existing vacancy In-service Portfolio occupancy of 92.1% Strong leasing pipeline Demonstrated track record of 65-85% tenant renewal rate over past 6 full years Accretive Development Current development pipeline of $621 million (3.4MM SF of industrial, 1.0MM SF of medical office and 0.7MM SF of suburban office, currently 83% pre-leased) 2013 estimated development starts of $400 to $500 million High quality land bank to facilitate future development Continued Asset Repositioning Acquisitions of primarily core and value-add bulk industrial, located in strategic distribution markets, leased to high quality tenants with contractual lease escalators Dispositions focused on more capital intensive suburban office mainly in the Midwest, retail, and select older medical and industrial/flex assets Asset recycling has been AFFO neutral to positive, while extending average lease duration, lowering cash flow volatility, improving tenant credit and improving overall quality of portfolio Increase Rents \ Reduced Capex Rent roll downs burning off and positive same property NOI performance Forecasts of industrial market wide average annual rent growth of 2.7% * from 2014-17 * Rent forecasts a composite of PPR and Green Street OPERATIONS STRATEGY |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation Development Strategic Advantages Development platform creates value 9 Duke Realty 40 years of experience in development Recognized as one of the leading commercial developers nationally Land bank in strategic locations that can support approximately 55 million square feet of development is a significant value advantage Capital deployed in development can generate 75 to 150 basis points of premium yield over comparable acquisition yields Risk management policies in place to govern maximum development pipeline size and speculative development starts |
![]() 2013 Duke Realty Corporation 10 Land and Development Capabilities OPERATIONS STRATEGY $549 million HELD FOR DEVELOPMENT Attractive positions contribute to future development and value • Strategically located in key distribution markets and vibrant commercial corridors • Cost feasibility and development strategies completed for all land investments; Land fully zoned for intended use • Land bank can support approximately 55 million square feet of future development o 46.6 million square feet of future industrial development in key distribution markets o 8.0 million square feet of future office development land primarily for build-to-suit • Monetizing land bank supports strong development yield premiums and accelerates further improvement in credit profile • Sales of $76 million since 2009 have resulted in an approximate 5% gain over impaired basis Office 36% Industrial 64% |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation 11 Historical Development Starts National Development Platform Providing Solid Growth Stabilized Costs in $millions Original Pre-lease %: 39% 87% 88% 97% 77% 81% Current Lease %: 91% 90% 99% 97% 80% 81% Stabilized Yield: 8.2% 8.5% 8.9% 7.5% 7.3% 8.0% $373 $236 $130 $202 $519 $138 Current development pipeline of 5.1 million square feet, $621 million in stabilized costs, 83% pre-leased at a weighted average stabilized yield of 7.5% 84 16 74 19 302 40 188 220 56 120 194 59 101 63 23 39 0 100 200 300 400 500 2008 2009 2010 2011 2012 2013 YTD Office Medical Industrial |
![]() 2013 Duke Realty Corporation Chicago Industrial Select 2012 Industrial Development Starts 12 Columbus Industrial • OPERATIONS STRATEGY Southern California Industrial Atlanta Industrial Greater Seattle Bulk Industrial Delaware Industrial • Regional distribution center build-to-suit in greater Seattle for internet retailer • 1,016,000 square feet • 15 year lease term • Yusen Logistics build-to-suit • O’Hare submarket on 26 acre brownfield redevelopment • 230,000 square feet • 12 year lease term • Regional distribution center build-to- suit in Delaware for internet retailer • 1,015,000 square feet • 12 year lease term • Speculative development on Duke Realty land in Chino, CA • Inland Empire West submarket • 421,000 square feet • Kuehne & Nagel build-to-suit on Duke Realty land at Camp Creek • South Atlanta submarket near Hartsfield Airport • 211,000 square feet • 10 year lease term • Restoration Hardware expansion for Eastern U.S. Distribution Operations • West Jefferson submarket on 19 acres of our land • 418,000 square feet, as an addition to existing 805,000 square feet • 15 year lease term |
![]() 2013 Duke Realty Corporation 2013 YTD Development Starts 13 OPERATIONS STRATEGY Nashville Industrial Dallas Medical Office Dallas Office Houston Industrial Waco Medical Office • • • • Regional distribution center build-to-suit for Starbucks • 680,000 square feet • 7.5 year lease term • Three Baylor Emergency (ER) facilities in Metro Dallas (cities of Rockwell, Murphy and Burleson) • 114,000 total square feet • $15 million project cost each ($45 million total) • Build-to-suit on Duke Realty land • 200,000 square feet • 16 year lease term Scott & White Healthcare 37,000 square feet 15 year term • • • Speculative development on Duke Realty land Airport submarket 240,000 square feet |
![]() 2013 Duke Realty Corporation ASSET STRATEGY 14 |
![]() 2013 Duke Realty Corporation 1Q 2013 YE 2013 15 Asset Strategy BY PRODUCT 2009 BY GEOGRAPHY ASSET STRATEGY 2009 YE 2013 Southeast 22% Southeast 1Q 2013 Southeast 21% Office 56% Retail 3% Industrial 36% Medical Office 5% Office 27% Retail 3% Industrial 54% Medical Office 16% Office 25% Industrial 60% Medical Office 15% Midwest 55% East 12% South 10% West 1% Note: Figures represents share of quarterly net operating income Midwest 46% East 11% South 18% West 4% Midwest 40% 21% East 14% South 17% West 8% |
![]() 2013 Duke Realty Corporation 16 New, High Quality Portfolio with Long-term Leases ASSET STRATEGY Premier portfolio of assets Portfolio average Bulk Industrial Suburban Office Medical Office Property age 11.3 years 15.0 years 6.7 years Property size 230,000 SF 114,000 SF 78,000 SF Lease term 7.2 years 6.8 years 11.3 years Tenant size 80,000 SF 11,000 SF 9,000 SF |
![]() 2013 Duke Realty Corporation 17 Premier Quality Industrial Portfolio ASSET STRATEGY Focus on modern bulk warehouse with strong performance characteristics <100,000 100,000-500,000 >500,000 Percentage Total Square Feet 9% 55% 36% Building Square Footage (000's) 10,000 61,000 40,000 Number of Buildings 151 278 53 Average Tenant Size 22,000 88,000 482,000 Occupancy 90.3% 93.0% 95.3% Building Size Portfolio Metric (As of March 31, 2013) |
![]() 2013 Duke Realty Corporation 18 2013 Notable Dispositions Solid Momentum on Executing Disposition Strategy Raleigh, NC Sale of 50% joint venture at $98.3 million sales price (building valuation $328/SF) 300,000 square feet 95% leased Chambers Street Portfolio ASSET STRATEGY • CapTrust Tower • • • 17 primarily office and flex properties located across FL, OH, MN, TX, AZ and NC Sale of 20% joint venture interest to partner for $98.6 million sales price ($149/SF Office; $79/SF Industrial) 3.3 million square feet 98% leased • • • • |
![]() 2013 Duke Realty Corporation 19 Pembroke Pines Retail Disposition Pembroke Gardens Lifestyle Center INTERSTATE-75 / 136,000 VPD Pembroke Pines, FL, on Interstate 75 391,000 square feet, 90% leased $188 million sales proceeds ($480/SF) Proceeds strategically recycled into high quality industrial portfolio • • • • ASSET STRATEGY Successful development, lease-up and gain on sale of non-core asset |
![]() 2013 Duke Realty Corporation Consistent with long-term asset strategy, this transaction is an opportunity to buy a portfolio of 100% modern, class A bulk assets in major distribution markets 8 facilities, 4.9 million square feet, seven markets $312 million purchase price, or ~$66/SF, $99 million of assumed debt. Closed in May 2013. 100% leased to 10 tenants 90% in Duke Realty target markets . . . California, Pennsylvania, New Jersey and Houston The portfolio is representative of our existing portfolio and superior to most acquisition opportunities: – Average age of 8 years – Average building size of 608,000 sf – Minimum clear height of 30’ with 7 assets 32’+ – All assets are cross docked Exceptional portfolio of Class A assets 20 ASSET STRATEGY Transaction executed at attractive pricing USAA Portfolio Industrial Acquisition |
![]() 2013 Duke Realty Corporation 21 ASSET STRATEGY USAA Portfolio Acquisition Strategic capital recycling into high quality bulk industrial portfolio Home Depot Deployment Center Central Valley, CA 660,000 SF, 100% leased JoAnne Stores Central Valley, CA 635,000 SF, 100% leased Redlands Commerce Center Inland Empire East 575,000 SF, 100% leased Lakeview Commerce Center St. Louis, MO 540,000 SF, 100% leased Kimberly-Clark Regional DC Kansas City, KS 447,000 SF, 100% leased Interport Building I Houston, TX 600,000 SF, 100% leased 1130 Commerce Blvd Southern NJ 386,000 SF, 100% leased Sears Distribution Center Northeast PA 1,026,000 SF, 100% leased |
![]() 2013 Duke Realty Corporation 2 facilities totaling 950,000 SF 9 years old, 100% leased to Crate & Barrel Located in Cranbury, NJ, just off I-95, equidistant to Philadelphia and New York City, a key distribution market in the Eastern U.S. One of three distribution locations for Crate & Barrel, with Duke Realty owning/managing another location in Naperville, IL $75 million purchase price, or ~$79/SF. Closed in April 2013 22 Central New Jersey Industrial Acquisition ASSET STRATEGY Duke Realty enters key distribution market in Eastern U.S. Port of Newark Container Terminal |
![]() 2013 Duke Realty Corporation 23 Midwest Office Portfolio being Marketed Continue Pruning Midwest Suburban Office According to Plan ASSET STRATEGY • 17 Class A buildings, 2.3 million square feet, average age of 16 years • Cincinnati, Cleveland and St. Louis markets • 91.8% leased |
![]() 2013 Duke Realty Corporation 24 MEDICAL OFFICE STRATEGY |
![]() 2013 Duke Realty Corporation 25 Healthcare Trends The nation’s largest industry • More than 17% of GDP; predicted to exceed 23% by 2020 • U.S. population 65+ expected to approach 90 million by 2050 • Aging population driving increase in healthcare expenditures MEDICAL OFFICE STRATEGY Annual Healthcare Expenditures Source: U.S. Bureau of the Census Population Age 65+: 1960-2050 Source: U.S. Bureau of the Census Age 65-74 Age 75-84 Age 85+ Growing healthcare expenditures and demographics should drive long term MOB demand $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 80,000,000 90,000,000 100,000,000 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050 |
![]() ![]() © 2013 Duke Realty Corporation 26 Healthcare Trends MEDICAL OFFICE STRATEGY Projected U.S. Residents with Insurance in 2021 Source: U.S. Bureau of the Census and U.S. Center for Disease Control and Prevention Inpatient and Outpatient Trends Source: Avalere Health, American Hospital Association Annual Survey, U.S. Census Bureau Inpatient Days Outpatient Visits Affordable Care Act should further improve trend for demand for lowest-cost setting outpatient facilities such as Medical Office 223M +253M 205 210 215 220 225 230 235 240 245 250 255 260 Before ACA After ACA 0 500 1,000 1,500 2,000 2,500 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 Affordable Care Act People insured expected to increase by 30 to 50 million – increased demand for care Number of physicians will increase – growing MOB space demand Patient care shifting to more cost-efficient MOB settings with higher acuity of services • Reduced reimbursements will make real estate efficiency a priority – larger deals and floor plates Healthcare system consolidation and physician employment by hospitals escalating – growing MOB demand and improving tenant credit • • • • |
![]() 2013 Duke Realty Corporation Our Plan Existing healthcare assets $1.5 Billion New developments projected $200 Million in 2013 92.4% leased at March 31, 2013 . . . projected to increase in 2013 Recycle selected non-strategic assets and recognize value created Our Focus Virtually all assets are on campus or affiliated with a major health system Goal: Grow Medical Office Primarily through Development 27 MEDICAL OFFICE STRATEGY |
![]() 2013 Duke Realty Corporation 28 In-Service Under Development Total Properties 70 13 83 Investment $ $1.2 B $290 M $1.5 B Square Feet 5.5 M 1.0 M 6.5 M Leased Occupancy 91% 100% 92% Medical Office Portfolio at March 31, 2013 MEDICAL OFFICE STRATEGY Portfolio investment by product type MOB On-Campus MOB Off-Campus Specialty Hospital 19% 5% 76% Regional National Portfolio investment by hospital system Local 35% 47% 18% |
![]() © 2013 Duke Realty Corporation 29 Healthcare Development Pipeline MEDICAL OFFICE STRATEGY Department of Veterans Affairs Tampa, FL 117,000 SF, 100% pre-leased Scott and White Healthcare Marble Falls, TX 67,000 SF, 100% pre-leased Wishard Health Indianapolis, IN 274,000 SF, 100% pre-leased Scott & White Healthcare College Station, TX 119,000 SF, 100% pre-leased Centerre / Community Health Indianapolis, IN 60,000 SF, 100% pre-leased Northside Hospital Orthopedic Clinic Atlanta, GA 101,000 SF, 100% pre-leased Scott & White Healthcare Temple, TX 78,000 SF, 100% pre-leased Baylor Healthcare (4 Facilities) Dallas, TX 38,000 square feet each (152,000 total square feet), 100% pre-leased Scott & White Healthcare Waco, TX 35,000 SF, 100% pre-leased |
![]() © 2013 Duke Realty Corporation 30 1% 3% 1% 4% 4% 8% 5% 0% 2% 4% 6% 8% 10% 2013 2014 2015 2016 2017 2018 2019 Lease Expirations (% of In-Service Sq. Ft.) High credit tenants and limited lease maturity result in stable and growing cash flow Top Health System Relationships Health System Credit Rating (Moody's) Rentable SF Ascension Health Aa1 510,000 Baylor Health Care System Aa2 450,000 Scott & White Healthcare A1 438,000 Harbin Clinic Unrated 313,000 Franciscan Alliance, Inc. Aa3 288,000 Health & Hospital Corp Marion County (Wishard) Aa1 274,000 Trinity Health Aa2 259,000 Catholic Health Initiatives Aa2 250,000 Veterans Administration Aaa 224,000 Northside Hospital Unrated 210,000 MEDICAL OFFICE STRATEGY As of 3/31/13 |
![]() 2013 Duke Realty Corporation Strategic Benefits to Duke Realty Medical office solid NOI growth and lower volatility 31 • NOI growth with long term leases averaging over 11 years with very high tenant retention o Typical lease includes 2-3% annual net rent escalators with expenses passed through • Strong credit tenants with over 95% of the portfolio leased to, or affiliated with major hospital systems (a majority credit-rated A or AA) • The newest portfolio in REIT sector with an average age of 7 years • Total portfolio occupancy of 92.4% • Medical office development starts solid with approximately $200 million projected for 2013, majority 100% leased • Growth industry, defensive asset class • Capital markets liquidity benefits and G&A synergies MEDICAL OFFICE STRATEGY |
![]() 2013 Duke Realty Corporation CAPITAL STRATEGY AND 2013 GUIDANCE 32 |
![]() 2013 Duke Realty Corporation Capital Strategy Focus 33 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 |
![]() 2013 Duke Realty Corporation • Investment grade rated debt for over 16 years • Proven access to multiple capital sources • Available line of credit - $850 million capacity • Conservative AFFO payout ratio (74%) 34 Key Capital Metrics & Goals 2010 Actual 2012 Actual Q1 2013 Goal Debt to Gross Assets 46.3% 49.7% 47.6% 45.0% Debt + Preferred to Gross Assets 55.5% 56.1% 52.1% 50.0% Fixed Charge Coverage Ratio 1.79 : 1 1.81 : 1 1.86 : 1 2.00 : 1 Debt + Preferred / EBITDA 8.88 9.25 8.04 7.75 CAPITAL STRATEGY Progressing toward strategic plan goals |
![]() 2013 Duke Realty Corporation % Total Return (1) : YTD 2013 FY 2012 FY 2011 DRE +2.1% DRE +20.8% S&P 400 +16.9% RMS +8.7% Comps (3) +28.2% DRE +23.9% Comps (3) -6.0% S&P 500 +16.0% RMS +11.0% S&P 500 +2.1% S&P 400 +17.9% S&P 500 +16.6% S&P 400 -1.7% RMS +17.8% Comps (3) +15.4% Relative Performance of Duke Realty Notes 1. 2. 3. 35 (2) RELIABLE. ANSWERS. DRE stock price as of end of trading 5/29/13,@ $16.85 Total return for comparable companies calculated on a market cap weighted basis Comparables include PLD, BDN, CLI, DCT, HIW, LRY, FR, OFC, and EGP; PLD and AMB are included historically; figures shown on a market cap weighted basis |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation Industrial Average: 19.8x Office Average: 12.9x 15.5x 14.7x 15.8x 25.7x 10.1x 13.4x 17.2x 10.9x 19.3x 17.0x 6.0x 10.0x 14.0x 18.0x 22.0x 26.0x 30.0x LRY OFC HIW CLI BDN DRE PLD EGP FR DCT Industrial Average: 27.9x Industrial Average: 3.0% Office Average: 19.1x Office Average: 4.4% Office Average: 7.0% Price / 2013E FFO Implied Cap Rate (1) Dividend Yield Price / 2013E AFFO Key: Office: LRY=Liberty; CLI=Mack-Cali; HIW=Highwoods; BDN=Brandywine; OFC=Corporate Office Industrial: PLD=Prologis; FR=First Industrial; DCT=DCT Industrial Trust; EGP=Eastgroup Source: SNL Financial, 5/29/13 (1) Per Wall Street research as of 5/20/13 Duke Realty Valuation Statistics Duke Realty still undervalued by most levered and NAV metrics Industrial Average: 5.8% 22.0x 19.2x 19.3x 33.7x 17.8x 19.0x 25.0x 25.0x 17.3x 28.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x LRY HIW OFC BDN CLI DRE PLD FR EGP DCT 8.5% 6.4% 6.6% 6.7% 6.6% 5.5% 5.4% 5.5% 6.4% 6.7% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% CLI BDN OFC HIW LRY DRE FR DCT PLD EGP 4.6% 1.9% 3.5% 3.7% 4.0% 4.1% 2.7% 4.2% 4.5% 4.6% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% HIW LRY CLI BDN OFC DRE DCT EGP PLD FR 36 |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation ATM Program – Overview Future Outlook Recap and Timeline Usage Use opportunistically as business warrants; primarily to fund development with 60% equity; very cost efficient capital Integral to growth plans and de-levering goals • Raised $24.8MM in Q2 at a VWAP of $18.24 to close out second shelf program 37 Appropriately funding our business ATM Timeline Action Initial $150MM Program Second $200MM Program Current $300MM Program Implemented Program Feb 11, 2010 May 7, 2012 May 21, 2013 Completed Program Mar 15, 2012 May 15, 2013 |
![]() 2013 Duke Realty Corporation $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2013 2014 2015 2016 2017 and beyond Unsecured Debt Secured Debt JV Debt $609 38 Liquidity Position ($ in millions) CAPITAL STRATEGY Maturity ladder actively managed $134 $463 $557 $2,973 Debt Maturity and Amortization Schedule May 31, 2013 |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation 2013 Range of Estimates $ in millions 39 Leasing actions, capital recycling and development execution drive upside 2013 Range of Estimates Metrics 2012 Actual Q1 2013 Actual Pessimistic Optimistic Key Assumptions Core FFO per share $1.02 $0.26 $1.03 $1.11 - Continued improvement in operating fundamentals - Development projects - Growth in asset base from repositioning actitivies AFFO Payout Ratio 83% 74% 83% 76% - Annual dividend maintained at $0.68 per share Average Occupancy - In-Service 92.2% 92.6% 92.0% 94.0% - Positive momentum continued, although slower pace - Expirations only 7% of portfolio Same Property NOI Growth 2.5% 2.4% 1.0% 4.0% - Occupancy growth slowing - Slightly improved rental rate assumptions Building Acquisitions $801 $30 $300 $500 - Remain selective regarding property type and location in alignment with long-term strategy Building Dispositions $141 $222 $400 $600 - Continue to prune remaining office and retail Land Sale Proceeds $12 $0.6 $15 $25 - Selling identified non-strategic parcels - Demand still sluggish, but improving Development Starts $520 $139 $400 $500 - Comprised mainly of industrial and medical office - Substantially pre-leased Service Operations Income $22 $9 $16 $24 - Consistent third party volumes anticipated General & Administrative expense $44 $13 $43 $37 - Continued efficiency gains |
![]() 2013 Duke Realty Corporation 40 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 RELIABLE. ANSWERS |
![]() RELIABLE. ANSWERS. 2013 Duke Realty Corporation 41 40 Years of Reliability Long-tenured associates in our Indianapolis headquarters commemorated Duke Realty’s 40 th year in business |
![]() RELIABLE. ANSWERS. 2013 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. 42 |