Duke Realty Reports Third Quarter 2013 Results
Core FFO per Share of $0.28 and AFFO per Share of $0.22 Leasing Momentum Very Strong with In-Service Occupancy up to 93.5 Percent $76 Million of New Development Starts
(firmenpresse) - INDIANAPOLIS, IN -- (Marketwired) -- 10/30/13 -- Duke Realty Corporation (NYSE: DRE), a leading industrial, suburban and medical office property REIT, today reported results for the third quarter of 2013.
Core Funds from Operations ("Core FFO") per diluted share was $0.28 for the quarter. Funds from Operations ("FFO") per diluted share as defined by the National Association of Real Estate Investment Trusts ("NAREIT") was $0.29 for the quarter.
Solid operating results:
Total portfolio occupancy of 93.4 percent and in-service portfolio occupancy of 93.5 percent;
Total leasing activity of more than 6.2 million square feet;
Same-property net operating income growth of 4.4 percent, as compared to the quarter ended September 30, 2012;
Adjusted Funds from Operations ("AFFO") of $0.22 per diluted share, which represents a dividend pay-out ratio under 78 percent.
Progress on asset and capital strategies:
Began $76 million of new developments;
Completed $39 million of modern bulk industrial acquisitions;
Repaid six secured loans, totaling $77 million that bore interest at a weighted average effective rate of 5.6%.
Denny Oklak, Chairman and CEO, said, "We saw continued excellent operational results across all product types in the third quarter with strong leasing activity that resulted in a 30 basis point improvement in our in-service occupancy to 93.5 percent and same property income growth of 4.4 percent. This performance and the success our asset repositioning contributed to increased Core Funds from Operations and continued strong results in Adjusted Funds from Operations."
The following table reconciles FFO per share, as defined by NAREIT, to Core FFO per share as measured by the company, for both the three and nine months ended September 30, 2013 and 2012:
Overall Core FFO per share for the third quarter of 2013 increased from the third quarter of 2012 because of improved rental operations, lower preferred dividends resulting from preferred share redemptions and lower interest expense through refinancing unsecured debt at lower rates during the past year. A reconciliation of FFO as defined by NAREIT to Core FFO is included in the financial tables included in this release.
Net loss was $0.02 per diluted share for the third quarter of 2013 compared to net loss of $0.11 per diluted share for the same quarter in 2012. In addition to the above-mentioned factors driving Core FFO and FFO as defined by NAREIT, the lower net loss per share resulted from gains on depreciable property sales.
In-service occupancy in the bulk distribution portfolio on September 30, 2013 of 94.6 percent compared to 94.4 percent on June 30, 2013.
In-service occupancy in the suburban office portfolio of 87.2 percent on September 30, 2013 compared to 86.5 percent on June 30, 2013.
In-service occupancy in the medical office portfolio of 93.6 percent on September 30, 2013 compared to 92.7 percent on June 30, 2013.
Tenant retention of over 64 percent for the quarter, with overall positive renewal rental rate growth of 2.6 percent.
Same-property net operating income growth of 4.3 percent for the twelve months ended September 30, 2013 and 4.4 percent for the three months ended September 30, 2013 as compared to the comparable periods ended September 30, 2012. The positive same-property performance was driven by increased occupancy and rent growth within our same property portfolio.
The Company acquired $39 million (452,500 square feet) of high-quality modern bulk industrial facilities located in key distribution markets during the third quarter of 2013. Acquisitions during the third quarter consisted of one industrial property totaling 342,500 square feet in Central Pennsylvania and one industrial property totaling 110,000 square feet in Southern California, both of which were 100 percent leased.
Oklak stated, "New development activity continued to be strong as we commenced $76 million of bulk distribution, suburban office and medical office projects during the third quarter. In total, when including one 50 percent-owned joint venture development project, we had 2.3 million square feet of development in progress across eighteen projects, which were 85 percent pre-leased in the aggregate, with total budgeted costs of $391 million and a projected stabilized yield near 8 percent."
The third quarter included the following development activity:
Wholly-Owned Properties
During the quarter, four new developments were started. The Company started a 534,000 square foot industrial development, on our land in Columbus, Ohio, which was 100 percent pre-leased; a 52,000 square foot expansion to an existing industrial property in Chicago, which was 100 percent pre-leased; a 204,000 square foot suburban office development on our land in Raleigh, North Carolina, which was 64 percent pre-leased; and a 49,000 square foot medical office development in the greater Cincinnati area that was 100 percent pre-leased.
Wholly-owned development projects under construction at September 30, 2013 consisted of 11 medical office projects totaling 543,000 square feet, three industrial projects totaling 826,000 square feet and three office projects totaling 611,000 square feet.
Two industrial developments totaling 1.7 million square feet were placed in service, both of which were 100 percent pre-leased. Additionally, two 100 percent pre-leased medical office projects totaling 220,000 square feet were placed in service.
Joint Venture Properties
One 273,000 square foot medical office project, which was 100 percent pre-leased, was under construction at September 30, 2013.
Oklak also stated, "In addition to the solid third quarter development activity, I am pleased to announce that we started a 1.0 million square foot industrial project for Amazon on our land in Baltimore, Maryland. This project continues our relationship with Amazon and demonstrates our continued ability to create value within our development platform and monetize our land holdings. This development is on the site of a former General Motors assembly plant which we acquired as a Brownfield site and redeveloped into a project that will ultimately consist of 2.2 million square feet of modern bulk industrial facilities adjacent to the Port of Baltimore."
Proceeds from property dispositions totaled $73 million during the quarter, of which $44 million was from one 206,000 square foot medical office asset (approximately 60 percent occupied) and the remaining proceeds were from the sale of one non-core industrial asset and from the sale of 65 acres of wholly-owned or jointly controlled undeveloped land.
Our board of directors declared a quarterly cash dividend on our common stock of $0.17 per share, or $0.68 per share on an annualized basis. The third quarter dividend will be payable November 29, 2013 to shareholders of record on November 14, 2013. The board also declared the following dividends on our outstanding preferred stock:
The company reaffirmed its previous 2013 guidance range for Core FFO per share of $1.07 to $1.11.
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, and extraordinary items (computed in accordance with generally accepted accounting principles ("GAAP")); 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 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.
Core FFO is computed as FFO adjusted for certain items that are generally non-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 benefit 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, adjustments on the repurchase or redemption of preferred stock, gains (losses) on and related costs of acquisitions, 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 is 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 certain non-cash items including straight line rental income, non-cash components of interest expense and stock compensation expense, and after similar adjustments for unconsolidated partnerships and joint ventures.
The company includes same-property net operating income growth as a property-level supplemental measure of performance. The company does not believe same-property net operating income growth to be a primary measure of overall company operating performance. The company utilizes same-property net income growth as a supplemental measure to evaluate property-level performance, without differentiating or making adjustment as to whether a property is consolidated or jointly controlled.
A description of the properties that are excluded from the company's same-property measure is included on page 22 of our September 30, 2013 supplemental information.
Duke Realty Corporation owns and operates approximately 149.3 million rentable square feet of industrial and office assets, including medical office, in 22 major U.S. metropolitan areas. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty Corporation is available at .
Duke Realty Corporation is hosting a conference call tomorrow, October 31, 2013, at 3:00 p.m. EDT 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. EDT today through the Investor Relations section of the company's website.
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) - (ix). 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 Form 10-K for the year ended December 31, 2012. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.
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.
Ron Hubbard
317.808.6060
Helen McCarthy
317.708.8010
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 30.10.2013 - 15:10 Uhr
Sprache: Deutsch
News-ID 1277807
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
INDIANAPOLIS, IN
Phone:
Kategorie:
Commercial Real Estate
Anmerkungen:
Diese Pressemitteilung wurde bisher 122 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Duke Realty Reports Third Quarter 2013 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Duke Realty Corporation (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
