Duke Realty Announces First Quarter Earnings; Common and Preferred Stock Dividends Also Announced; Rich Horn to Leave Company.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--April 24, 2002

Duke Realty Corporation (NYSE:DRE) reported today that net income available for common shareholders for the first quarter of 2002 was $45.3 million on revenues of $204.2 million, compared to $58.8 million on revenues of $204.3 million for the first quarter last year. On a per share basis, first quarter net income available for common shareholders was $0.34 per share compared with $.45 per share for the first quarter of 2001. Included in the Company's first quarter results are $1.1 million ($0.01 per share) of gains on sales of land and depreciable property compared to $12.8 million ($0.09 per share) of such gains in the first quarter of 2001.

Funds from operations ("FFO") increased 3.2 percent to $87.3 million for the first quarter of 2002 versus $84.6 million for the same period in 2001. On a per share basis, FFO was unchanged with the first quarter of 2001 at $0.65 per share. All per share amounts reported are diluted with basic per share information also included in the financial table accompanying this press release.

Additionally, the Company's Board of Directors declared a quarterly dividend of $.45 per common share, or $1.80 per share on an annualized basis. The dividend is payable on May 31, 2002 to common shareholders of record on May 14, 2002.

The Board also declared today the following dividends on the Company's outstanding preferred stock:

              NYSE       Quarterly
Class        Symbol    Amount/Share    Record Date      Payment Date
-----        ------    ------------    -----------      ------------
Series B   Not Listed     $.99875     June 14, 2002     June 28, 2002
Series D     DREPRD       $.46094     June 14, 2002     June 28, 2002
Series E     DREPRE       $.51563     June 14, 2002     June 28, 2002
Series F     DREPRF       $.50000     July 17, 2002     July 31, 2002
Series I     DREPRI       $.52813     June 14, 2002     June 28, 2002

Commenting on Duke's first quarter performance, Tom Hefner, Chairman and Chief Executive Officer, stated,

"As expected, our first quarter performance was impacted by the full-period effect of the $541 million of dispositions that we closed in 2001, lower occupancy levels, and higher general and administrative costs as a result of lesser construction and development volumes. Largely because of the substantial value creation that we realized from our held-for-sale portfolio, however, we were able to meet our goal of having flat FFO per share growth compared to the first quarter of 2001. Flat FFO per share growth remains our goal for the second quarter as well, and we continue to be patient in employing our considerable debt capacity."

Property information at March 31, 2002 was as follows:

-- Duke renewed 70 percent of leases up for renewal, totaling 2.0 million
square feet, on which it attained a 1.6 percent growth in net effective rents.

-- Year-to-date same property net operating income for 2002 increased 1.5
percent.

-- Property sales in the first quarter were $144 million including $91 million
of properties that were sold in the open market at an average capitalization
rate of 8.7 percent.

-- The Company's interest and fixed-charge coverage ratios in the first quarter
were 5.0 and 3.3, respectively, and its debt-to-total market capitalization
ratio was 27.5 percent at March 31, 2002.

The Company also disclosed the following information for the first quarter of 2002:

-- Duke renewed 70 percent of leases up for renewal, totaling 2.0 million
square feet, on which it attained a 1.6 percent growth in net effective rents.

-- Year-to-date same property net operating income for 2002 increased 1.5
percent.

-- Property sales in the first quarter were $144 million including $91 million
of properties that were sold in the open market at an average capitalization
rate of 8.7 percent.

-- The Company's interest and fixed-charge coverage ratios in the first quarter
were 5.0 and 3.3, respectively, and its debt-to-total market capitalization
ratio was 27.5 percent at March 31, 2002.

Duke also announced today that Rich Horn has resigned his position as President to become President of Brenwick Development Corporation, a high-end residential land development firm headquartered in Indianapolis, Indiana. Denny Oklak and Gary Burk who were named Co-Chief Operating Officers earlier this month will assume Mr. Horn's responsibilities. Commenting on Rich's departure, Mr. Hefner said,

"Rich has been an outstanding Duke associate since the day he graduated from law school 18 years ago. He has played an important role in the Company's success over the years and we will miss both his professional contributions and his day-to-day friendship. On the other hand, the founders of Brenwick are longtime friends of Duke for whom we have great respect. We know Rich will play an important role in the future growth of Brenwick. All of us at Duke wish Rich and his family the best in his new career."

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 that 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 Duke's Form 8-K Report as filed with the Securities and Exchange Commission on December 6, 2001 for additional information concerning these risks.

Duke Realty Corporation is one of the largest real estate companies in the United States with a total market capitalization exceeding $6.3 billion. Committed to Complete Customer Satisfaction, the Company is a fully integrated real estate company that owns a diversified portfolio of primarily industrial, office and retail properties in 13 major U.S. cities. The Company was also named to the Forbes 500 list for 2002. With a largely dominant presence in the Midwest and Southeast, Duke owns, manages or has under development more than 105 million square feet of properties. The Company also controls nearly 4,200 acres of undeveloped land that can support approximately 64 million square feet of future development. The 1,050 real estate professionals at Duke strive to completely satisfy their tenants. Visit Duke on the web at www.dukerealty.com.

A copy of the Company's March 31, 2002 supplemental information fact book will be available after 7:00 p.m. EST  today in the Investor Information section of the Company's web site at www.dukerealty.com. Duke is also hosting a conference call tomorrow at 2:30 p.m. Eastern Daylight Time (New York time) to discuss its first quarter operating results. All investors are invited to listen to this call, which can be accessed through the Investor Information section of the Company's web site at www.dukerealty.com.

                  Financial Highlights
         (in thousands, except per share data)

                                              -----------------------
                                                 Three Months Ended
                                                      March 31
                                              -----------------------
Operating Results                                2002         2001
----------------------------------------------------------------------
Revenues from continuing operations           $  204,197   $  204,264
Earnings from rental operations                   54,243       63,948
Earnings from service operations                  15,515        9,288
Net income - continuing operations                44,078       57,725
Net income - common shareholders                  45,278       58,770
Funds from operations - Basic                     87,279       84,592
Funds from operations - Diluted                  101,519      101,526

Per Share:
Net income - common shareholders - Basic
      Continuing operations                       $0.33        $0.45
     Discontinued Operations                      $0.01        $0.01
     Total                                        $0.34        $0.46
Net income - common shareholders - Diluted
      Continuing operations                       $0.33        $0.44
     Discontinued Operations                      $0.01        $0.01
     Total                                        $0.34        $0.45
Funds from operations - Basic                     $0.66        $0.66
Funds from operations - Diluted                   $0.65        $0.65
Dividend payout ratio of funds from operations    69.2%        66.2%
Weighted average shares outstanding
        Basic                                    131,932      128,399
        Diluted                                  156,724      157,492

                                              -----------------------
                                               March 31   December 31
Balance Sheet Data                               2002         2001
----------------------------------------------------------------------
Net real estate investments                   $4,653,293   $4,703,746
Total assets                                   5,269,066    5,330,033
Total debt                                     1,737,787    1,814,856
Shareholders' equity                           2,811,080    2,785,009
Common shares outstanding at end of period       133,080      131,416