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For Immediate Release For Investor Inquires, contact:
January 31, 2001 Thomas K. Peck
2001-03 317/808-6168
For Media Inquires, contact:
Donna M. Hovey
317/808-6137
DUKE-WEEKS ANNOUNCES 10.5 PERCENT GROWTH IN FOURTH QUARTER FFO PER SHARE
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FFO PER SHARE GROWTH EXCEEDS 10 PERCENT FOR THE 21ST CONSECUTIVE QUARTER
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COMMON AND PREFERRED STOCK DIVIDENDS ALSO ANNOUNCED
INDIANAPOLIS - Duke-Weeks Realty Corporation (DRE/NYSE)
reported today that funds from operations ("FFO") increased 13.7
percent to $81.9 million for the fourth quarter of 2000 versus
$72.0 million for the same period in 1999. On a per share basis,
FFO increased 10.5 percent to $0.63 per share in the fourth quarter
of 2000 from $0.57 per share for the fourth quarter of 1999. This
is the Company's twenty-first consecutive quarter of double-digit
growth in FFO per share. For the year ended December 31, 2000, the
Company reported FFO per share of $2.46, a 12.3 percent increase
over 1999.
Net income available for common shareholders for the fourth
quarter of 2000 increased to $73.4 million on revenues of $194.7
million, up from $41.2 million on revenues of $183.6 million for
the fourth quarter last year. On a per share basis, fourth quarter
net income available for common shareholders increased 72.7 percent
to $0.57 per share compared with $0.33 per share for the fourth
quarter of 1999. For the year, net income available for common
shareholders increased 25.8 percent to $1.66 per share, compared
with $1.32 per share in 1999. All per share amounts reported are
diluted with basic per share information also included in the
financial highlights table accompanying this press release.
Additionally, the Company's Board of Directors declared a
quarterly dividend of $.43 per common share, or $1.72 per share on
an annualized basis. The dividend is payable on February 28, 2001
to common shareholders of record on February 12, 2001.
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The Board also declared today the following dividends on the
Company's outstanding preferred stock:
NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
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Series A DREPRA $.56875 February 14, 2001 February 28, 2001
Series B Not Listed $.99875 March 16, 2001 March 30, 2001
Series D DREPRD $.46094 March 16, 2001 March 30, 2001
Series E DREPRE $.51563 March 16, 2001 March 30, 2001
Series F DREPRF $.50000 April 16, 2001 April 30, 2001
Commenting on Duke-Weeks' 2000 performance, Thomas L. Hefner,
Chairman and Chief Executive Officer, stated,
"The fourth quarter concluded another excellent year for Duke-
Weeks. Throughout 2000, in a slowing economy, we were able to
fund our value creation pipeline internally, de-leverage, and
still maintain our industry-leading record of consecutive
double-digit earnings growth. This performance gives Duke-
Weeks a strong foundation for 2001."
Property information at December 31, 2000 was as follows:
/ / The Company's 913 in-service properties totaling 101
million square feet were 93.6 percent leased, up from
91.9 percent leased at December 31, 1999.
/ / Including projects under development, the Company's total
portfolio at the end of the fourth quarter consisted of
958 properties totaling more than 109 million square feet
that were 90.8 percent leased, up from 87.0 percent
leased at December 31, 1999.
/ / The Company's value creation pipeline at year-end
encompassed more than 17 million square feet and totaled
$645 million. Components of this pipeline include $249
million of developments with an expected stabilized
return of 11.6 percent that Duke-Weeks plans to own
indefinitely after completion; $288 million of
developments with an expected stabilized return of 11.6
percent that the Company plans to sell within
approximately one year of completion; and a $109 million
backlog of third-party construction volume with a 13.5
percent pre-tax profit margin.
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The Company also disclosed the following information for the
fourth quarter of 2000:
/ / Duke-Weeks renewed 77.6 percent of leases up for renewal,
totaling 2.1 million square feet, on which it attained a
6.6 percent growth in net effective rents.
/ / Same property net operating income for 2000 increased
4.24 percent.
/ / Capital recycling activity in the fourth quarter was $288
million, taking the Company's total for 2000 to $765
million.
/ / Duke-Weeks' interest and fixed-charge coverage ratios in
the fourth quarter were 4.7 and 3.2, respectively, and
its debt-to-total market capitalization ratio was 31.4
percent at December 31, 2000.
When used in this press release, the word "believes,"
"expects," "estimates" and similar expressions are intended to
identify forward-looking statements. Such statements are subject
to certain risks and uncertainties which could cause actual results
to differ materially. In particular, among the factors that could
cause actual results to differ materially are continued
qualification as a real estate investment trust, general business
and economic conditions, competition, increases in real estate
construction costs, interest rates, accessibility of debt and
equity capital markets and other risks inherent in the real estate
business including tenant defaults, potential liability relating to
environmental matters and liquidity of real estate investments.
Readers are advised to refer to Duke-Weeks' Form 8-K Report as
filed with the Securities and Exchange Commission on March 29, 1996
for additional information concerning these risks.
Duke-Weeks Realty Corporation is one of the largest mixed
office/industrial real estate companies in the United States with
approximately $800 million in annual revenue from more than 5,000
tenants, approximately 1,500 employees, and a dominant presence in
most of its 13 key geographic platforms. The fully integrated
Company owns interests in more than 109 million square feet of
properties across the Midwest and the Sunbelt and has the longest
ongoing record (21 consecutive quarters) in the industry of double-
digit growth in funds from operations per share. Duke-Weeks also
owns or controls more than 4,100 acres of undeveloped land that can
support approximately 61 million square feet of future development.
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FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
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OPERATING RESULTS 2000 1999 2000 1999
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Revenues $194,714 $183,624 $794,625 $589,594
Earnings from rental
operations 59,230 60,695 228,987 197,474
Earnings from service
operations 7,938 5,383 32,760 17,872
Net income-common
shareholders 73,425 41,184 212,958 139,636
Funds from operations-Basic 81,873 72,017 317,360 234,273
Funds from operations-Diluted 97,222 86,447 377,853 278,599
Per Share:
Funds from operations-Basic $0.64 $0.57 $2.50 $2.23
Funds from operations-Diluted $0.63 $0.57 $2.46 $2.19
Net income-common shareholders
- Basic $0.58 $0.33 $1.68 $1.33
Net income-common shareholders
- Diluted $0.57 $0.33 $1.66 $1.32
Dividend payout ratio of funds
from operations 68.3% 68.4% 68.3% 69.0%
Weighted average shares
outstanding
Basic 127,654 125,412 126,836 104,884
Diluted 154,802 151,961 153,927 127,015
DECEMBER 31 DECEMBER 31
BALANCE SHEET DATA 2000 1999
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Net real estate investments $4,706,854 $5,046,809
Total assets 5,460,036 5,486,238
Total debt 1,973,215 2,113,476
Shareholders' equity 2,712,890 2,668,596
Common shares outstanding
at end of period 127,932 125,823