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Real estate industry

Duke Realty Reports Strong First Quarter 2011 Earnings

Strategic Insights

— 1 min read

Duke Realty Corporation, a leading industrial, medical office, and suburban office property REIT, reported strong earnings for the first quarter of 2011. Despite a challenging economy, the company made significant progress on its repositioning strategy, disposing of primarily Midwest office assets for over $456 million and completing industrial acquisitions worth $139 million. Operationally, Duke Realty's Core FFO of $0.28 cents per share remained solid, with total portfolio occupancy steady at 88.9 percent and over 5 million square feet of leases completed.

Key Takeaways:

  • Duke Realty reported property disposition proceeds of over $456 million from the sale of primarily Midwest office assets in the first quarter of 2011.
  • The company completed industrial acquisitions worth $139 million in the first quarter, with the closings on the assets completed throughout the quarter and in April.
  • Duke Realty's Core FFO for the first quarter was $0.28 cents per share, with total portfolio occupancy remaining steady at 88.9 percent.
  • The company completed over 5 million square feet of leases in the first quarter.
  • Duke Realty reaffirmed its Core FFO guidance for 2011 of $1.06 to $1.18.
  • The company's board of directors declared a quarterly cash dividend on its common stock of $0.17 per share, with the first quarter dividend payable on May 31, 2011, to shareholders of record as of May 17, 2011.
  • The company believes FFO to be an operating measure and recommends examining it in conjunction with net income as defined by GAAP.
  • Duke Realty's FFO adjusted for certain non-cash items, or Core FFO, provides a meaningful supplemental measure of its operating performance.

Statistics:

  • Property disposition proceeds: $456.4 million
  • Industrial acquisitions: $139 million
  • Total portfolio occupancy: 88.9%
  • Leases completed: over 5 million square feet
  • Core FFO: $0.28 cents per share
  • 2011 earnings guidance: $1.06 to $1.18

Sources:

  • Duke Realty Corporation website: www.dukerealty.com
  • Securities and Exchange Commission filings: Duke Realty's Annual Report on Form 10-K for the year ended December 31, 2010
  • Press release: Duke Realty Corporation's first quarter earnings report, April 27, 2011

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