Duke Realty (DRE) 8-K Duke Realty Reports Third Quarter 2018 Results

Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

DUKE REALTY REPORTS THIRD QUARTER 2018 RESULTS

7.5 Percent Increase to Quarterly Dividend

$141 Million of Development Starts

27.9 Percent Growth in Rents on Leasing Activity

Earnings Guidance Increased

(INDIANAPOLIS, October 24, 2018) – Duke Realty Corporation (NYSE: DRE), the largest domestic only, logistics REIT today reported results for the third quarter 2018.

Jim Connor, Chairman and Chief Executive Officer said, “We have completed a strong quarter of earnings growth, as our leasing results throughout the year have driven an increase to Core FFO per share of 6.1 percent compared to the second quarter of 2018 and 16.7 percent compared to the third quarter of 2017. We are also pleased to announce an increase to our quarterly dividend from $0.20 per share to $0.215 per share. This 7.5 percent increase to our quarterly dividend is based on our expectations of continued earnings growth allowing us to continue coverage of our ongoing dividends in the range of 65 to 75 percent of AFFO.

Operational performance was also outstanding, as we generated growth in same-property net operating income of 6.3 percent for the quarter over the third quarter of 2017, which was the result of both continued rental rate growth and increased occupancy. New and renewal leases executed during the quarter will result in rent growth of 11.2 percent on a cash basis and 27.9 percent growth in annualized net effective rents.”

Mark Denien, Executive Vice President and Chief Financial Officer, stated, “We utilized a portion of the proceeds from the $450 million unsecured note issuance that we executed in September to repay two secured loans totaling $224 million. These transactions resulted in a reduction to our cost of borrowing and effectively eliminated secured debt as a meaningful component of our financing structure. Additionally, we do not have any significant debt maturities until 2021.

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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We finished the quarter with $133 million of available cash, $128 million of cash held in escrow for future 1031 exchanges and $277 million of interest bearing notes receivable that will mature at various times through January 2020. These sources of liquidity will fund near term growth in our development pipeline.”

Quarterly Highlights

• A complete reconciliation, in dollars and per share amounts, of net income to funds from operations (“FFO”), as defined by NAREIT, as well as to Core FFO, is included in the financial tables included in this release.

• Net income was $0.15 per diluted share for the third quarter of 2018, compared to $0.46 per diluted share for the third quarter of 2017. The decrease to net income per diluted share was due to significant gains recognized from the sale of medical office and suburban office properties during the third quarter of 2017.

• FFO, as defined by NAREIT, was $0.36 per diluted share for the third quarter of 2018, compared to $0.26 per diluted share for the third quarter of 2017. FFO per diluted share, as defined by NAREIT, increased due to increased investments in new industrial properties, overall improved operations and the recognition of $17 million of losses on debt extinguishment during the third quarter of 2017.

• Core FFO was $0.35 per diluted share for the third quarter of 2018, compared to $0.30 per diluted share for the third quarter of 2017. With the exception of the losses on debt extinguishment during the third quarter of 2017, the increase in Core FFO per diluted share was driven by the same factors as the increase in FFO per diluted share, as defined by NAREIT.

• Operating performance within the company’s industrial portfolio included:

– Total stabilized occupancy at September 30, 2018 of 97.9 percent compared to 98.2 percent at June 30, 2018 and 98.0 percent at September 30, 2017

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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– Totalin-service occupancy at September 30, 2018 of 96.8 percent compared to 97.4 percent at June 30, 2018 and 95.7 percent at September 30, 2017

– Total occupancy, including properties under development, of 93.7 percent at September 30, 2018 compared to 94.0 percent at June 30, 2018 and 93.2 percent at September 30, 2017

– Tenant retention of 82.7 percent

– Same-property net operating income growth of 6.3 percent and 4.6 percent for the three and nine-month periods ended September 30, 2018 compared to the same periods in 2017

– Total leasing activity of 5.2 million square feet for the quarter

– Overall cash and annualized net effective rent growth on new and renewal leases of 11.2 percent and 27.9 percent, respectively, for the quarter

• Successful execution of capital transactions in the third quarter included:

– Issued $450 million of unsecured notes, maturing in September 2028, at an effective rate of 4.1 percent

– Repaid two secured loans, totaling $224 million, that bore interest at an average effective rate of 7.6 percent

– Issued 990,400 common shares under our ATM program, at an average issuance price of $29.24 per share, for total net proceeds of $28 million

– Started six new development projects with expected costs of $141 million

Real Estate Investment Activity

Mr. Connor further stated, “We started $141 million of developments during the quarter, totaling 2.0 million square feet, which were 51 percentpre-leased. Our development pipeline at September 30, 2018 was 52 percent leased and consisted of 25 properties totaling 10.6 million square feet, with expected costs of $854 million. A significant portion of the unleased space in these new development properties is located in Tier One markets where we expect future lease up efforts to result in significant ongoing net operating income and rent growth potential outside of our same property population.”

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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Development

The third quarter included the following development activity:

Consolidated Properties

• During the quarter, the company started $108 million of consolidated development projects totaling 1.4 million square feet, which were 75 percentpre-leased in total. These development projects included a 340,000 square foot development in Southern California that was started on a speculative basis and then fully leased; a 618,000 square footbuild-to-suit development in Cincinnati; and a 338,000 square foot speculative development in Houston.

• Six projects totaling 3.4 million square feet, which were 69 percent leased in total, were placed in service during the quarter.

Unconsolidated Joint Venture Properties

• During the quarter, a 50 percent-owned joint venture started two speculative developments in Indianapolis totaling 645,000 square feet.

• A 400,000 square foot logistics project in Indianapolis, which was 100 percent leased, was placed in service during the quarter by a 50 percent-owned joint venture.

Building Dispositions

Building dispositions totaled $9 million in the third quarter, with the only building sale being a property in Indianapolis, IN, totaling 284,000 square feet, which was sold from a 50 percent-owned joint venture.

Distributions Declared

The company’s board of directors declared a quarterly cash distribution on its common stock of $0.215 per share, or $0.86 per share on an annualized basis. The third quarter dividend will be payable on November 30, 2018 to shareholders of record on November 15, 2018.

Revisions to 2018 Guidance

A reconciliation of the company’s guidance for diluted net income per common share to FFO, as defined by NAREIT, and to Core FFO, is included in the financial tables to this release. The company revised its guidance for net income to a range of $1.02 to $1.10 per diluted share from its previous guidance of $0.97 to $1.12 per diluted share. The company revised its guidance for FFO, as defined by NAREIT, to a range of $1.33 to $1.39 per diluted share from its previous guidance of $1.29 to $1.37.

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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Commenting on the revision to the company’s 2018 guidance, Mr. Connor stated, “As we near the end of 2018 and our leasing and rental growth results have continued to come in at the higher end of our estimates, we have increased and narrowed our guidance for Core FFO to a range of $1.31 to $1.35 per diluted share from the previous range of $1.29 to $1.35 per diluted share. For these same reasons, we have also increased our guidance for growth in same-property net operating income to a range of 4.2 percent to 4.8 percent from the previous range of 3.5 percent to 4.5 percent.”

A summary of further guidance changes is as follows:

• The guidance for growth in AFFO, on a share adjusted basis, was narrowed to a range of 5.5 percent to 9.1 percent from the previous range of 4.5 percent to 10.0 percent.

• The estimate for building dispositions was increased to a range of $500 million to $600 million from the previous range of $470 million to $600 million.

• The estimate for building acquisitions was narrowed to a range of $200 million to $300 million from the previous range of $100 million to $400 million.

• The estimate for earnings from service operations was increased to a range of $5 million to $7 million from the previous range of $2 million to $5 million.

An updated version of the company’s 2018 guidance will be available by 6:00 p.m. Eastern Time today through the Investor Relations section of the company’s website.

FFO and AFFO Reporting Definitions

FFO:FFO is computed in accordance with standards established by NAREIT. NAREIT defines FFO as net income (loss) excluding gains (losses) on sales of depreciable property, impairment charges related to depreciable real estate assets; plus real estate related depreciation and amortization, and after similar adjustments for unconsolidated joint ventures. The company believes FFO to be most directly comparable to net income as defined by generally accepted accounting principles (“GAAP”). The company believes that FFO should be examined in conjunction with net income (as defined by GAAP) as presented in the financial statements accompanying this release. FFO does not represent a measure of liquidity, nor is it indicative of funds available for the company’s cash needs, including the company’s ability to make cash distributions to shareholders.

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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Core FFO:Core FFO is computed as FFO adjusted for certain items that are generallynon-cash in nature and that materially distort the comparative measurement of company performance over time. The adjustments include gains on sale of undeveloped land, impairment charges not related to depreciable real estate assets, tax expenses or benefits related to (i) changes in deferred tax asset valuation allowances, (ii) changes in tax exposure accruals that were established as the result of the adoption of new accounting principles, or (iii) taxable income (loss) related to other items excluded from FFO or Core FFO (collectively referred to as “other income tax items”), gains (losses) on debt transactions, gains (losses) on and related costs of acquisitions, gains on sale of merchant buildings, gains (losses) from involuntary conversion related to weather events or natural disasters, promote income and severance charges related to major overhead restructuring activities. Although the company’s calculation of Core FFO differs from NAREIT’s definition of FFO and may not be comparable to that of other REITs and real estate companies, the company believes it provides a meaningful supplemental measure of its operating performance.

AFFO:AFFO is a supplemental performance measure defined by the company as Core FFO (as defined above), less recurring building improvements and total second generation capital expenditures (the leasing of vacant space that had previously been under lease by the company is referred to as second generation lease activity) related to leases commencing during the reporting period and adjusted for certainnon-cash items including straight line rental income and expense,non-cash components of interest expense and stock compensation expense, and after similar adjustments for unconsolidated partnerships and joint ventures.

Same-Property Performance

The company includes same-property net operating income growth as a property-level supplemental measure of performance. The company utilizes same-property net operating income growth as a supplemental measure to evaluate property-level performance, and jointly-controlled properties are included at the company’s ownership percentage.

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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A reconciliation of net income from continuing operations to same property net operating income is included in the financial tables to this release. A description of the properties that are excluded from the company’s same-property net operating income measure is included on page 17 of its September 30, 2018 supplemental information.

About Duke Realty Corporation

Duke Realty Corporation owns and operates approximately 152 million rentable square feet of industrial assets in 20 major logistics markets. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P 500 Index. More information about Duke Realty Corporation is available at www.dukerealty.com.

Third Quarter Earnings Call and Supplemental Information

Duke Realty Corporation is hosting a conference call tomorrow, October 25, 2018, at 3:00 p.m. ET 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 website.

A copy of the company’s supplemental information will be available by 6:00 p.m. ET today through the Investor Relations section of the company’s website.

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 or results, 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; (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) valuation of real estate; (x) increases in operating costs; (xi) changes in the dividend policy for the company’s common stock; (xii) the reduction in the company’s income in the event of multiple lease terminations by tenants; (xiii) impairment charges, (xiv) the effects of geopolitical instability and risks such as terrorist attacks; (xv) the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes; and (xvi) the effect of any damage to our reputation resulting from developments relating to any of items (i) – (xv). 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 Form10-K for the year ended December 31, 2017. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

Duke Realty Reports Third Quarter 2018 Results

October 24, 2018

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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:

Investors:

Ron Hubbard

317.808.6060

Media:

Helen McCarthy

317.708.8010

Duke Realty Corporation and Subsidiaries

Consolidated Statement of Operations

(Unaudited and in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Rental and related revenue	$	196,912		$	169,611		$	582,461		$	507,123
General contractor and service fee revenue		34,986			25,217			94,552			58,192
		231,898			194,828			677,013			565,315
Expenses:
Rental expenses		17,704			16,224			54,869			46,967
Real estate taxes		31,515			28,157			93,857			81,569
General contractor and other services expenses		33,730			24,079			89,392			54,077
Depreciation and amortization		78,855			67,992			232,216			197,028
		161,804			136,452			470,334			379,641
Other operating activities:
Equity in earnings of unconsolidated joint ventures		5,552			1,841			15,521			58,523
Promote income		—			—			—			20,007
Gain on sale of properties		(107	)		21,952			194,741			93,339
Gain on land sales		3,915			5,665			7,221			8,449
Other operating expenses		(668	)		(770	)		(2,591	)		(2,226	)
Impairment charges		—			(3,622	)		—			(4,481	)
General and administrative expenses		(8,959	)		(10,075	)		(43,441	)		(41,165	)
		(267	)		14,991			171,451			132,446
Operating income		69,827			73,367			378,130			318,120
Other income (expenses):
Interest and other income, net		4,129			6,404			13,319			9,197
Interest expense		(21,462	)		(20,835	)		(62,137	)		(65,401	)
Loss on debt extinguishment		(89	)		(16,568	)		(240	)		(26,104	)
Income from continuing operations, before income taxes		52,405			42,368			329,072			235,812
Income tax benefit (expense)		897			(359	)		(9,495	)		(7,918	)
Income from continuing operations		53,302			42,009			319,577			227,894
Discontinued operations:
Income before gain on sales and income taxes		85			2,563			108			17,747
Gain on sale of depreciable properties		136			120,179			3,157			1,229,270
Income tax benefit (expense)		—			876			—			(10,736	)
Income from discontinued operations		221			123,618			3,265			1,236,281
Net income		53,523			165,627			322,842			1,464,175
Net income attributable to noncontrolling interests		(498	)		(358	)		(3,009	)		(18,163	)
Net income attributable to common shareholders	$	53,025		$	165,269		$	319,833		$	1,446,012
Basic net income per common share:
Continuing operations attributable to common shareholders	$	0.15		$	0.12		$	0.88		$	0.63
Discontinued operations attributable to common shareholders		—			0.34			0.01			3.43
Total	$	0.15		$	0.46		$	0.89		$	4.06
Diluted net income per common share:
Continuing operations attributable to common shareholders	$	0.15		$	0.12		$	0.88		$	0.63
Discontinued operations attributable to common shareholders		—			0.34			0.01			3.40
Total	$	0.15		$	0.46		$	0.89		$	4.03

Duke Realty Corporation and Subsidiaries

Consolidated Balance Sheets

(Unaudited and in thousands)

	September 30, 2018			December 31, 2017
Assets
Real estate investments:
Real estate assets	$	6,943,629		$	6,593,567
Construction in progress		515,324			401,407
Investments in and advances to unconsolidated joint ventures		107,811			126,487
Undeveloped land		314,075			226,987
		7,880,839			7,348,448
Accumulated depreciation		(1,294,370	)		(1,193,905	)
Net real estate investments		6,586,469			6,154,543
Real estate investments and other assets held-for-sale		53,653			17,550
Cash and cash equivalents		133,405			67,562
Accounts receivable, net		19,494			19,427
Straight-line rents receivable, net		102,480			93,005
Receivables on construction contracts, including retentions		33,699			13,480
Deferred leasing and other costs, net		305,143			292,682
Restricted cash held in escrow for like-kind exchange		127,597			116,405
Notes receivable from property sales		276,744			426,657
Other escrow deposits and other assets		186,126			186,885
	$	7,824,810		$	7,388,196
Liabilities and Equity
Indebtedness:
Secured debt, net of deferred financing costs	$	80,716		$	311,349
Unsecured debt, net of deferred financing costs		2,553,460			2,111,542
		2,634,176			2,422,891
Liabilities related to real estate investments held-for-sale		606			1,163
Construction payables and amounts due subcontractors, including retentions		100,323			54,545
Accrued real estate taxes		89,671			67,374
Accrued interest		27,463			17,911
Other liabilities		208,874			210,825
Tenant security deposits and prepaid rents		38,773			39,109
Total liabilities		3,099,886			2,813,818
Shareholders’ equity:
Common shares		3,583			3,564
Additional paid-in-capital		5,240,495			5,205,316
Distributions in excess of net income		(571,617	)		(676,036	)
Total shareholders’ equity		4,672,461			4,532,844
Noncontrolling interests		52,463			41,534
Total equity		4,724,924			4,574,378
	$	7,824,810		$	7,388,196

Duke Realty Corporation and Subsidiaries

Summary of EPS, FFO and AFFO

Three Months Ended September 30,

(Unaudited and in thousands, except per share amounts)

	2018							2017
	Amount			Wtd. Avg. Shares		Per Share		Amount			Wtd. Avg. Shares		Per Share
Net income attributable to common shareholders	$	53,025						$	165,269
Less dividends on participating securities		(394	)						(444	)
Net income per common share-basic		52,631			357,898	$	0.15		164,825			355,905	$	0.46
Add back:
Noncontrolling interest in earnings of unitholders		495			3,302				1,535			3,301
Other potentially dilutive securities		—			210				444			2,896
Net income attributable to common shareholders-diluted	$	53,126			361,410	$	0.15		166,804			362,102	$	0.46
Reconciliation to FFO
Net income attributable to common shareholders	$	53,025			357,898			$	165,269			355,905
Adjustments:
Depreciation and amortization		78,855							68,029
Company share of joint venture depreciation, amortization and other		2,367							2,171
Gains on depreciable property sales - discontinued operations		(136	)						(121,348	)
Gains on depreciable property sales - continuing operations		107							(21,952	)
Income tax benefit triggered by depreciable property sales		(897	)						(516	)
Gains on depreciable property sales - unconsolidated joint ventures		(2,008	)						37
Noncontrolling interest share of adjustments		(718	)						677
NAREIT FFO attributable to common shareholders - basic		130,595			357,898	$	0.36		92,367			355,905	$	0.26
Noncontrolling interest in income of unitholders		495			3,302				1,535			3,301
Noncontrolling interest share of adjustments		718							(677	)
Other potentially dilutive securities					2,117							2,896
NAREIT FFO attributable to common shareholders - diluted	$	131,808			363,317	$	0.36	$	93,225			362,102	$	0.26
Gains on land sales		(3,915	)						(5,665	)
Gains on involuntary conversion - unconsolidated joint venture		(1,397	)						—
Loss on debt extinguishment		89							16,568
Land impairment charges		—							3,622
Core FFO attributable to common shareholders - diluted	$	126,585			363,317	$	0.35	$	107,750			362,102	$	0.30
AFFO
Core FFO - diluted	$	126,585			363,317	$	0.35	$	107,750			362,102	$	0.30
Adjustments:
Straight-line rental income and expense		(6,445	)						(4,292	)
Amortization of above/below market rents and concessions		(593	)						1,232
Stock based compensation expense		2,208							1,943
Noncash interest expense		1,443							1,244
Second generation concessions		—							(19	)
Second generation tenant improvements		(4,043	)						(3,700	)
Second generation leasing costs		(4,440	)						(4,983	)
Building improvements		(1,417	)						(5,184	)
AFFO - diluted	$	113,298			363,317			$	93,991			362,102

Duke Realty Corporation and Subsidiaries

Summary of EPS, FFO and AFFO

Nine Months Ended September 30,

(Unaudited and in thousands, except per share amounts)

	2018							2017
	Amount			Wtd. Avg. Shares		Per Share		Amount			Wtd. Avg. Shares		Per Share
Net income attributable to common shareholders	$	319,833						$	1,446,012
Less dividends on participating securities		(1,249	)						(1,527	)
Net income per common share-basic		318,584			357,235	$	0.89		1,444,485			355,614	$	4.06
Add back:
Noncontrolling interest in earnings of unitholders		3,002			3,350				13,427			3,307
Other potentially dilutive securities		1,249			2,160				1,527			3,026
Net income attributable to common shareholders-diluted	$	322,835			362,745	$	0.89	$	1,459,439			361,947	$	4.03
Reconciliation to FFO
Net income attributable to common shareholders	$	319,833			357,235			$	1,446,012			355,614
Adjustments:
Depreciation and amortization		232,216							222,914
Company share of joint venture depreciation, amortization and other		6,647							7,266
Impairment charges - depreciable property		—							859
Gains on depreciable property sales - discontinued operations		(3,157	)						(1,224,422	)
Gains on depreciable property sales - continuing operations		(194,741	)						(93,339	)
Income tax expense triggered by depreciable property sales		9,495							19,142
Gains on depreciable property sales - unconsolidated joint ventures		(8,186	)						(50,694	)
Noncontrolling interest share of adjustments		(395	)						10,307
NAREIT FFO attributable to common shareholders - basic		361,712			357,235	$	1.01		338,045			355,614	$	0.95
Noncontrolling interest in income of unitholders		3,002			3,350				13,427			3,307
Noncontrolling interest share of adjustments		395							(10,307	)
Other potentially dilutive securities					2,160							3,026
NAREIT FFO attributable to common shareholders - diluted	$	365,109			362,745	$	1.01	$	341,165			361,947	$	0.94
Gains on land sales		(7,221	)						(8,449	)
Gains on involuntary conversion - unconsolidated joint venture		(1,397	)						—
Loss on debt extinguishment		240							26,104
Gain on non-depreciable property sale - unconsolidated joint ventures		—							(119	)
Land impairment charges		—							3,622
Promote income		—							(20,007	)
Other income tax items		—							(2,619	)
Core FFO attributable to common shareholders - diluted	$	356,731			362,745	$	0.98	$	339,697			361,947	$	0.94
AFFO
Core FFO - diluted	$	356,731			362,745	$	0.98	$	339,697			361,947	$	0.94
Adjustments:
Straight-line rental income and expense		(17,759	)						(12,336	)
Amortization of above/below market rents and concessions		(1,598	)						1,895
Stock based compensation expense		18,238							16,023
Noncash interest expense		4,244							4,448
Second generation concessions		(135	)						(94	)
Second generation tenant improvements		(12,194	)						(11,197	)
Second generation leasing commissions		(16,232	)						(15,260	)
Building improvements		(3,165	)						(8,115	)
AFFO - diluted	$	328,130			362,745			$	315,061			361,947

Duke Realty Corporation and Subsidiaries

Reconciliation of Same Property Net Operating Income Growth

(Unaudited and in thousands)

	Three Months Ended
	September 30, 2018			September 30, 2017
Income from continuing operations before income taxes	$	52,405		$	42,368
Share of same property NOI from unconsolidated joint ventures		4,063			4,049
Income and expense items not allocated to segments		98,202			85,605
Earnings from service operations		(1,256	)		(1,138	)
Properties not included and other adjustments		(35,163	)		(19,623	)
Same property NOI	$	118,251		$	111,261
Percent Change		6.3	%
	Nine Months Ended
	September 30, 2018			September 30, 2017
Income from continuing operations before income taxes	$	329,072		$	235,812
Share of same property NOI from unconsolidated joint ventures		12,016			11,990
Income and expense items not allocated to segments		113,710			150,064
Earnings from service operations		(5,160	)		(4,115	)
Properties not included and other adjustments		(100,489	)		(59,805	)
Same property NOI	$	349,149		$	333,946
Percent Change		4.6	%
Duke Realty Corporation and Subsidiaries
Reconciliation of 2018 FFO Guidance
(Unaudited )
	Pessimistic			Optimistic
Net income attributable to common shareholders - diluted	$	1.02		$	1.10
Depreciation and gains on sales of depreciated property (including share of joint venture)		0.31			0.29
NAREIT FFO attributable to common shareholders - diluted	$	1.33		$	1.39
Gains on land sales		(0.02	)		(0.03	)
Other reconciling items		—			(0.01	)
Core FFO attributable to common shareholders - diluted	$	1.31		$	1.35