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.
Duke Realty Corporation Statement of Operations December 31, 2012 (In thousands, except per share amounts) ---------------------- ---------------------- Three Months Ended Twelve Months Ended December 31, December 31, ---------------------- ---------------------- 2012 2011 2012 2011 ---------- ---------- ---------- ----------Revenues: Rental and related revenue $ 220,988 $ 190,891 $ 834,369 $ 742,883 General contractor and service fee revenue 48,564 112,178 275,071 521,796 ---------- ---------- ---------- ---------- 269,552 303,069 1,109,440 1,264,679 ---------- ---------- ---------- ----------Expenses: Rental expenses 42,335 36,909 153,135 144,617 Real estate taxes 28,715 22,791 113,643 102,277 General contractor and other services expenses 45,351 101,299 254,870 480,480 Depreciation and amortization 98,220 85,596 375,965 326,226 ---------- ---------- ---------- ---------- 214,621 246,595 897,613 1,053,600 ---------- ---------- ---------- ----------Other operating activities: Equity in earnings of unconsolidated companies 618 (1,325) 4,674 4,565 Gain on sale of properties 99 1,638 344 68,549 Undeveloped land carrying costs (2,223) (1,913) (8,829) (8,934) Impairment charges - (12,931) - (12,931) Other operating expenses (42) (1,066) (633) (1,237) General and administrative expenses (14,057) (13,876) (46,424) (43,107) ---------- ---------- ---------- ---------- (15,605) (29,473) (50,868) 6,905 ---------- ---------- ---------- ---------- Operating income 39,326 27,001 160,959 217,984Other income (expenses): Interest and other income, net 120 115 514 658 Interest expense (62,977) (54,937) (245,170) (220,455) Acquisition-related activity (1,629) 337 (4,192) (1,188) ---------- ---------- ---------- ----------Loss from continuing operations before income taxes (25,160) (27,484) (87,889) (3,001) Income tax benefit 0 0 103 194 ---------- ---------- ---------- ----------Loss from continuing operations (25,160) (27,484) (87,786) (2,807)Discontinued operations: Income (loss) before gain on sales 391 3,253 (1,549) (1,766) Gain on sale of depreciable properties 2,288 84,478 13,467 100,882 ---------- ---------- ---------- ---------- Income from discontinued operations 2,679 87,731 11,918 99,116Net income (loss) (22,481) 60,247 (75,868) 96,309Dividends on preferred shares (11,082) (14,006) (46,438) (60,353)Adjustments for redemption/repurchase of preferred shares - - (5,730) (3,796)Net (income) loss attributable to noncontrolling interests 520 (1,276) 1,891 (744) ---------- ---------- ---------- ---------- Net income (loss) attributable to common shareholders $ (33,043) $ 44,965 $ (126,145) $ 31,416 ========== ========== ========== ==========Basic net income (loss) per common share: Continuing operations attributable to common shareholders $ (0.13) $ (0.16) $ (0.53) $ (0.27) Discontinued operations attributable to common shareholders $ 0.01 $ 0.33 $ 0.05 $ 0.38 ---------- ---------- ---------- ----------Total $ (0.12) $ 0.17 $ (0.48) $ 0.11 ========== ========== ========== ==========Diluted net income (loss) per common share: Continuing operations attributable to common shareholders $ (0.13) $ (0.16) $ (0.53) $ (0.27) Discontinued operations attributable to common shareholders $ 0.01 $ 0.33 $ 0.05 $ 0.38 ---------- ---------- ---------- ----------Total $ (0.12) $ 0.17 $ (0.48) $ 0.11 ========== ========== ========== ========== Duke Realty Corporation Statement of Funds From Operations December 31, 2012 (In thousands, except per share amounts) Three Months Ended December 31, (Unaudited) ------------------------------------------------------ 2012 2011 -------------------------- -------------------------- Wtd. Wtd. Avg. Per Avg. Per Amount Shares Share Amount Shares Share --------- ------- ------- --------- ------- -------Net Income (Loss) Attributable to Common Shareholders $ (33,043) $ 44,965Less: Dividends on participating securities (689) (825) --------- ---------Net Income (Loss) Per Common Share- Basic (33,732) 276,081 $ (0.12) 44,140 252,922 $ 0.17Add back: Noncontrolling interest in earnings of unitholders - - 1,228 6,950 Other potentially dilutive securities - - --------- ------- --------- -------Net Income (Loss) Attributable to Common Shareholders- Diluted $ (33,732) 276,081 $ (0.12) $ 45,368 259,872 $ 0.17 ========= ======= ========= =======Reconciliation to Funds From Operations ("FFO")Net Income (Loss) Attributable to Common Shareholders $ (33,043) 276,081 $ 44,965 252,922Adjustments: Depreciation and amortization 99,081 93,250 Company share of joint venture depreciation and amortization 8,694 8,889 Earnings from depreciable property sales- wholly owned, discontinued operations (2,288) (84,478) Earnings from depreciable property sales- wholly owned, continuing operations (99) (1,638) Earnings from depreciable property sales-JV 158 - Noncontrolling interest share of adjustments (1,696) (438) --------- ------- --------- -------Funds From Operations- Basic 70,807 276,081 $ 0.26 60,550 252,922 $ 0.24 Noncontrolling interest in loss of unitholders (537) 4,493 1,228 6,950 Noncontrolling interest share of adjustments 1,696 438 Other potentially dilutive securities 3,428 3,550 --------- ------- --------- -------Funds From Operations- Diluted $ 71,966 284,002 $ 0.25 $ 62,216 263,422 $ 0.24 Impairment charges - 12,931 Acquisition-related activity 1,629 (337) Overhead restructuring charges 2,664 3,407 --------- ------- --------- -------Core Funds From Operations- Diluted $ 76,259 284,002 $ 0.27 $ 78,217 263,422 $ 0.30 ========= ======= ========= =======Adjusted Funds From OperationsCore Funds From Operations- Diluted $ 76,259 284,002 $ 0.27 $ 78,217 263,422 $ 0.30Adjustments: Straight-line rental income (5,020) (5,956) Amortization of above/below market rents and concessions 3,114 3,303 Stock based compensation expense 2,472 2,254 Noncash interest expense 2,413 1,521 Second generation concessions (180) (300) Second generation tenant improvements (9,341) (13,525) Second generation leasing commissions (6,291) (7,599) Building improvements (3,018) (5,687) --------- ------- --------- -------Adjusted Funds From Operations - Diluted $ 60,408 284,002 $ 0.21 $ 52,228 263,422 $ 0.20 ========= ======= ========= ======= Twelve Months Ended December 31, (Unaudited) ------------------------------------------------------ 2012 2011 -------------------------- -------------------------- Wtd. Wtd. Avg. Per Avg. Per Amount Shares Share Amount Shares Share --------- ------- ------- --------- ------- -------Net Income (Loss) Attributable to Common Shareholders $(126,145) $ 31,416Less: Dividends on participating securities (3,075) (3,243) --------- ---------Net Income (Loss) Per Common Share- Basic (129,220) 267,900 $ (0.48) 28,173 252,694 $ 0.11Add back: Noncontrolling interest in earnings of unitholders - - 859 6,904 Other potentially dilutive securities - - --------- ------- --------- -------Net Income (Loss) Attributable to Common Shareholders- Diluted $(129,220) 267,900 $ (0.48) $ 29,032 259,598 $ 0.11 ========= ======= ========= =======Reconciliation to Funds From Operations ("FFO")Net Income (Loss) Attributable to Common Shareholders $(126,145) 267,900 $ 31,416 252,694Adjustments: Depreciation and amortization 379,419 385,679 Company share of joint venture depreciation and amortization 34,702 33,687 Earnings from depreciable property sales- wholly owned, discontinued operations (13,467) (100,882) Earnings from depreciable property sales- wholly owned, continuing operations (344) (68,549) Earnings from depreciable property sales-JV (1,907) (91) Noncontrolling interest share of adjustments (7,054) (6,644) --------- ------- --------- -------Funds From Operations- Basic 265,204 267,900 $ 0.99 274,616 252,694 $ 1.09 Noncontrolling interest in income (loss) of unitholders (2,273) 4,829 859 6,904 Noncontrolling interest share of adjustments 7,054 6,644 Other potentially dilutive securities 3,276 3,588 --------- ------- --------- -------Funds From Operations- Diluted $ 269,985 276,005 $ 0.98 $ 282,119 263,186 $ 1.07 Adjustments for redemption/ repurchase of preferred shares 5,730 3,796 Impairment charges - 12,931 Acquisition-related activity 4,192 1,188 Other income tax items (103) (194) Overhead restructuring charges 2,664 3,407 --------- ------- --------- -------Core Funds From Operations- Diluted $ 282,468 276,005 $ 1.02 $ 303,247 263,186 $ 1.15 ========= ======= ========= =======Adjusted Funds From OperationsCore Funds From Operations- Diluted $ 282,468 276,005 $ 1.02 $ 303,247 263,186 $ 1.15Adjustments: Straight-line rental income (24,759) (28,622) Amortization of above/below market rents and concessions 8,867 12,731 Stock based compensation expense 12,940 12,596 Noncash interest expense 9,337 11,261 Second generation concessions (1,113) (3,010) Second generation tenant improvements (28,258) (54,409) Second generation leasing commissions (25,027) (36,746) Building improvements (6,842) (11,443) --------- ------- --------- -------Adjusted Funds From Operations - Diluted $ 227,613 276,005 $ 0.82 $ 205,605 263,186 $ 0.78 ========= ======= ========= ======= Duke Realty Corporation Balance Sheet December 31, 2012 (In thousands, except per share amounts) December 31, December 31, 2012 2011 ------------- -------------ASSETS: Rental Property $ 6,708,250 $ 6,038,107 Less: Accumulated Depreciation (1,296,685) (1,127,595) Construction in Progress 234,918 44,497 Undeveloped Land 614,208 622,635 ------------- ------------- Net Real Estate Investments 6,260,691 5,577,644 Cash 33,889 213,809 Accounts Receivable 22,367 22,428 Straight-line Rents Receivable 120,383 108,392 Receivables on Construction Contracts 39,754 40,247 Investments in and Advances to Unconsolidated Companies 372,256 364,859 Deferred Financing Costs, Net 40,083 42,268 Deferred Leasing and Other Costs, Net 503,527 463,983 Escrow Deposits and Other Assets 167,151 170,807 ------------- ------------- Total Assets $ 7,560,101 $ 7,004,437 ============= =============LIABILITIES AND EQUITY: Secured Debt $ 1,167,953 $ 1,173,233 Unsecured Notes 2,993,217 2,616,063 Unsecured Lines of Credit 285,000 20,293 Construction Payables and Amounts due to Subcontractors 84,679 55,916 Accrued Real Estate Taxes 74,648 69,470 Accrued Interest 59,215 58,904 Accrued Expenses 57,892 60,230 Other Liabilities 168,577 131,735 Tenant Security Deposits and Prepaid Rents 42,802 38,935 ------------- ------------- Total Liabilities 4,933,983 4,224,779 ------------- ------------- Preferred Stock 625,638 793,910 Common Stock and Additional Paid-in Capital 3,956,291 3,597,117 Accumulated Other Comprehensive Income 2,691 987 Distributions in Excess of Net Income (1,993,206) (1,677,328) ------------- ------------- Total Shareholders' Equity 2,591,414 2,714,686 Noncontrolling Interest 34,704 64,972 ------------- ------------- Total Liabilities and Equity $ 7,560,101 $ 7,004,437 ============= =============Contact Information:
Investors:
Ron Hubbard
317.808.6060
Media:
Helen McCarthy
317.708.8010
