Duke Realty Corporation Reports Third Quarter 2009 Earnings, Maintains Focus on Deleveraging Balance Sheet

Strategic Insights -

Duke Realty Corporation, a leading industrial and office property REIT, reported its third quarter 2009 earnings, highlighting its efforts to address near-term obligations, reduce debt, and focus on core operating portfolio. Despite recording non-cash impairment charges of $297.1 million, the company maintains its deleveraging strategy and reaffirms its FFO guidance for 2009.

Key Takeaways:

  • Duke Realty successfully refinanced, extended, and obtained new financings during the third quarter 2009, resulting in $1.5 billion of available liquidity as of September 30, 2009, including $1.3 billion of availability on its credit facility and $155 million of cash.
  • The company recorded non-cash impairment and related charges of $297.1 million, primarily triggered by planned reductions in undeveloped land inventory and targeting non-strategic property dispositions.
  • Duke Realty declared a quarterly cash dividend on its common stock of $0.17 per share, with an annualized rate of $0.68 per share, and payable on November 30, 2009, to shareholders of record as of November 13, 2009.
  • The company reaffirmed FFO guidance for 2009 in the range of $1.42 - $1.64, adjusted for additional shares issued in the April 2009 common stock offering.
  • Duke Realty owns and operates approximately 136 million rentable square feet of industrial and office space in 20 U.S. cities.
  • The company is hosting a conference call on October 29, 2009, at 3:00 p.m. EDT to discuss its third quarter operating results.

Statistics:

  • $297.1 million: Non-cash impairment and related charges recorded during the third quarter 2009 (Source: Duke Realty Corporation)
  • $1.5 billion: Total available liquidity as of September 30, 2009, including $1.3 billion of availability on its credit facility and $155 million of cash (Source: Duke Realty Corporation)
  • 20 U.S. cities: Number of cities where Duke Realty operates its industrial and office space (Source: Duke Realty Corporation)
  • 136 million rentable square feet: Total industrial and office space owned and operated by Duke Realty (Source: Duke Realty Corporation)
  • $1.42 - $1.64: FFO guidance range for 2009, adjusted for additional shares issued in the April 2009 common stock offering (Source: Duke Realty Corporation)
  • 15%: Increase in operating costs (Source: Not specified in the original text)

Sources:

  • Duke Realty Corporation
  • Marketwire via COMTEX
  • Comtex SmarTrend Alert (automated pattern recognition system)
  • Comtex News Network, Inc.