Duke Announces Third Quarter Earnings and Dividends.

INDIANAPOLIS--(BUSINESS WIRE)--Oct. 22, 1998--

FFO per Share up 23.1 Percent in the Third Quarter and

Exceeds 10 Percent for the Twelfth Consecutive Quarter

Year-to-Date FFO per Share up 19.8 Percent

Duke Realty Investments Inc. (NYSE:DRE) reported today that funds from operations ("FFO") were $39.4 million for the third quarter of 1998 versus $26.0 million for the same period in 1997, a 51.6 percent increase.

On a per share basis, FFO increased 23.1 percent to $.48 per share in the third quarter of 1998 from $.39 per share for the third quarter of 1997. This is the Company's twelfth consecutive quarter of double-digit growth in FFO per share. For the first nine months of 1998, the Company reported FFO per share of $1.39, a 19.8 percent increase over 1997.

Net income available for common shareholders for the third quarter of 1998 increased to $23.5 million on revenues of $97.6 million up from $16.9 million and $62.1 million, respectively, for the third quarter last year. On a per share basis, third quarter net income available for common shareholders increased 11.5 percent to $.29 per share compared to $.26 per share for the third quarter of 1997. Year to date, net income available for common shareholders increased 15.1 percent to $.84 per share for the first nine months of 1998. All per share amounts reported are diluted with basic per share information also included in the financial table accompanying this press release.

The Company also announced today that its Board of Directors declared a quarterly dividend of $.34 per share, or $1.36 on an annualized basis. The dividend is payable on November 30, 1998 to common shareholders of record on November 12, 1998.

The Board also declared today a dividend of $.56875 per depositary share on Duke's Series A Cumulative Redeemable Preferred Shares (NYSE:DRE.PRA). The dividend is payable November 30, 1998 to shareholders of record on November 16, 1998. Each depositary share represents one tenth of a share of the Company's 9.10 percent Series A Preferred Shares.

The Board also declared today a dividend of $.99875 per depositary share on Duke's Series B Cumulative Step-Up Redeemable Preferred Shares. The dividend is payable December 31, 1998 to shareholders of record on December 17, 1998. Each depositary share represents one tenth of a share of these 7.99 percent Series B Preferred Shares.

Commenting on Duke's third quarter performance, Thomas L. Hefner, Chairman and Chief Executive Officer, stated, -0-

     "With a 23.1 percent increase in FFO per share, the third quarter
     was our best quarter ever. Since the beginning of 1997, the
     Company's FFO per share growth has averaged more than 19 percent
     and we continue to feel that the underlying strength of our
     business is very good. While the stock market seems to be
     anticipating an economic recession or at least a slowdown, we
     continue to grow our earnings at a very healthy pace while being
     financially and operationally prepared for a weaker economy. At
     the present time we remain optimistic that our strong momentum
     will continue."

The end of the third quarter marks the fifth anniversary of Duke's October 4, 1993 public offering. The following is a summary of the Company's performance over the past five years ending September 30, 1998. -0-

--   Total shareholder return of 20.9 percent on an annualized basis
     compared to 8.8 percent for the NAREIT Equity Index and
     19.9 percent for the S&P 500 Index.

--   Average FFO growth per share of 13.5 percent with 20 consecutive
     quarters of record earnings and a continuing record of
     12 consecutive quarters of double digit growth in FFO per share.

--   More than $1.0 billion of development starts or completions at an
     average stabilized return of 12.0 percent (returns on completed
     developments averaged 58 basis points higher than the initial
     announced yield).

--   $1.2 billion of acquisitions at an average stabilized return of
     10.5 percent.

--   Successful expansions into St. Louis, Cleveland, Chicago, and
     Minneapolis.

--   Overall square footage growth of 42.9 million square feet from
     11.7 million square feet at October 4, 1993 to 54.6 million
     square feet at September 30, 1998.

Property information at September 30, 1998 was as follows: -0-

--   The Company's 428 in-service properties totaling 49.5 million
     square feet were 95.3 percent leased.

--   The Company had 5.1 million square feet under development. The
     estimated project cost of these properties is $351.5 million on
     which Duke expects to achieve an 11.5 percent stabilized return.

--   Including projects under development, the combined portfolio at
     the end of the third quarter consisted of 462 properties totaling
     approximately 54.6 million square feet that were 90.5 percent
     leased.

The Company also disclosed the following information for the third quarter of 1998: -0-

--   Duke renewed 70 percent of leases up for renewal totaling
     1,023,566 square feet of renewals on which it attained a
     17.4 percent growth in net effective rents.

--   Same Property Performance for the first nine months of 1998
     reflects an FFO increase of 4.2 percent and a net operating
     income increase of 5.2 percent.

--   The Company increased the size of its unsecured line of credit
     from $250 million to $450 million in the third quarter with no
     increase in pricing.

--   In August, 52 members of the management team and all seven
     unaffiliated members of Duke's Board of Directors purchased
     approximately $37 million of Company stock.

--   Development starts in the first nine months of 1998 totaled
     $289.5 million with an expected stabilized return of
     11.5 percent.

--   Acquisitions in the first nine months of 1998 totaled
     $249.4 million with a stabilized return of 10.1 percent

--   At September 30, 1998, the Company's year-to-date, one-year,
     three-year, and five-year total return exceeded the NAREIT Equity
     Index by an average of 1,400 basis points for each period
     measured.

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 the Company's Form 8-K Report as filed with the Securities and Exchange Commission on March 29, 1996 for additional information concerning these risks.

Duke Realty Investments is a fully integrated real estate company that owns interests in a diversified portfolio of 462 industrial, office and retail properties encompassing approximately 55 million square feet. These properties are primarily located in eight Midwestern cities. Duke Realty also owns more than 1,700 acres of land for future development.

A copy of the Company's third quarter 1998 supplemental materials fact book is available to interested parties upon written request to:

Thomas K. Peck 

Vice President, Investor Relations 

Duke Realty Investments Inc.

8888 Keystone Crossing, Suite 1200

Indianapolis, IN 46240 -0-

                         Financial Highlights
                 (in thousands, except per share data)

                               ------------------  ------------------
                               Three Months Ended  Nine Months Ended
                                 September 30       September 30
                               ------------------  ------------------
Operating Results                1998     1997      1998      1997
-------------------------------------------------  ------------------
Revenues                       $97,632   $62,135   $272,309  $173,707
Earnings from rental
  operations                    30,888    20,454     92,062    57,629
Earnings from service
  operations                     2,815     2,325      5,530     4,499
Net income - common
  shareholders                  23,449    16,911     67,569    46,593
Funds from operations           39,421    26,007    111,084    74,130

Per Share:
Funds from operations - Basic    $0.48     $0.40      $1.40     $1.17
Funds from operations - Diluted  $0.48     $0.39      $1.39     $1.16
Net income - common
  shareholders - Basic           $0.29     $0.26      $0.85     $0.74
Net income - common
  shareholders - Diluted         $0.29     $0.26      $0.84     $0.73
Dividend payout ratio            70.8%     76.9%      70.5%     73.3%
Weighted average shares
  outstanding
        Basic                   81,594    65,309     79,461    63,380
        Diluted                 93,279    72,971     91,252    71,054

                                           ---------------------------
                                            September 30   December 31
Balance Sheet Data                              1998           1997
----------------------------------------------------------------------
Net real estate investments                   $2,355,205    $1,954,013
Total assets                                   2,651,009     2,176,214
Total debt                                     1,027,045       720,119
Shareholders' equity                           1,370,651     1,234,681
Common shares outstanding at end of period        82,570        76,065