Duke Realty Announces Second Quarter Earnings; Common Stock Dividend Increase Also Announced.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--July 31, 2002

Duke Realty Corporation (NYSE:DRE) reported today that net income available for common shareholders for the second quarter of 2002 was $48.5 million on revenues of $195.8 million, compared to $49.7 million on revenues of $203.8 million for the second quarter last year. On a per share basis, second quarter net income available for common shareholders was $0.36 per share compared with $0.38 per share for the second quarter of 2001.

Diluted funds from operations ("FFO") were $102.0 million for the second quarter of 2002 versus $104.8 million for the same period in 2001. On a per share basis, second quarter FFO was $0.65 compared to $0.67 for the second quarter of 2001. All per share amounts reported are diluted with basic per share information also included in the financial table accompanying this press release.

Duke also announced today that its Board of Directors increased its quarterly common stock dividend to $0.455 per share, payable on August 30, 2002, to shareholders of record on August 14, 2002. The new dividend is a 1.1 percent increase over the previous amount and equals $1.82 per share on an annualized basis. Including increases in each of the past nine years, Duke has more than doubled its common stock dividend since its October 1993 public offering.

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   September 16, 2002  September 30, 2002
Series D    DREPRD    $.46094   September 16, 2002  September 30, 2002
Series E    DREPRE    $.51563   September 16, 2002  September 30, 2002
Series F    DREPRF    $.50000     October 17, 2002    October 31, 2002
Series I    DREPRI    $.52813   September 16, 2002  September 30, 2002

Property information at June 30, 2002 was as follows:

-- Duke renewed 72 percent of leases up for renewal, totaling 2.1 million square feet, on which it attained an 8.2 percent growth in net effective rents.

-- Year-to-date same property net operating income for 2002 increased 1.0 percent.

-- The Company's interest and fixed-charge coverage ratios in the second quarter were 5.0 and 3.3, respectively, and its debt-to-total market capitalization ratio was 25.5 percent at June 30, 2002.

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

-- Duke renewed 72 percent of leases up for renewal, totaling 2.1 million square feet, on which it attained an 8.2 percent growth in net effective rents.

-- Year-to-date same property net operating income for 2002 increased 1.0 percent.

-- The Company's interest and fixed-charge coverage ratios in the second quarter were 5.0 and 3.3, respectively, and its debt-to-total market capitalization ratio was 25.5 percent at June 30, 2002.

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

"The most important factor in our business continues to be

occupancy. After declining for several quarters, our overall

occupancy performance in the second quarter generally confirmed

our belief that we are at or near the bottom of this cycle. At

this point, we are more concerned with how long occupancies will

stay where they are than how much lower they will go. While we are

seeing pockets of improvement in several areas of our business,

our general activity level reflects a weak economy and therefore a

challenging real estate market."

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 of $6.8 billion at June 30, 2002. 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 Super 500 list for 2002. With a largely dominant presence in the Midwest and Southeast, Duke owns, manages or has under development more than 106 million square feet of properties. The Company also controls more than 4,000 acres of undeveloped land that can support approximately 62 million square feet of future development. The more than 1,000 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 June 30, 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 second 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      Six Months Ended
                                    June 30               June 30
                            -------------------   -------------------
Operating Results              2002       2001       2002       2001
---------------------------------------------------------------------

Revenues from continuing
 operations                 $195,758   $203,848   $400,448   $408,591
Earnings from rental
 operations                   60,059     66,302    114,869    130,807
Earnings from service
 operations                    7,611      9,227     23,126     18,515
Net income - continuing
 operations                   45,211     49,138     89,809    107,347
Net income - common
 shareholders                 48,528     49,675     93,806    108,445
Funds from operations
 - Basic                      88,835     88,754    176,114    173,346
Funds from operations
 - Diluted                   102,002    104,813    203,521    204,998

Per Share:
Net income - common
 shareholders - Basic
    Continuing operations      $0.34      $0.39      $0.67      $0.83
    Discontinued Operations    $0.02      $0.00      $0.03      $0.01
    Total                      $0.36      $0.39      $0.70      $0.84
Net income - common
 shareholders - Diluted
    Continuing operations      $0.34      $0.38      $0.67      $0.82
    Discontinued Operations    $0.02      $0.00      $0.03      $0.01
    Total                      $0.36      $0.38      $0.70      $0.83

Funds from operations
 - Basic                       $0.66      $0.69      $1.32      $1.35
Funds from operations
 - Diluted                     $0.65      $0.67      $1.30      $1.32
Dividend payout ratio
 of funds from operations       70.0%      67.2%      69.6%      66.7%
Weighted average
 shares outstanding
    Basic                    134,196    129,131    133,070    128,765
    Diluted                  157,546    156,028    157,136    155,711

                            -------------------   -------------------
                                                 June 30  December 31
Balance Sheet Data                                  2002       2001
---------------------------------------------------------------------
Net real estate investments                     $4,597,669 $4,703,746
Total assets                                     5,235,891  5,330,033
Total debt                                       1,735,217  1,814,856
Shareholders' equity                             2,835,689  2,785,009
Common shares outstanding at end of period         134,697    131,416