Duke Realty Announces Third Quarter Earnings; Common and Preferred Stock Dividends Also Announced.Business & Real Estate Editors INDIANAPOLIS--(BUSINESS WIRE)--Oct. 30, 2002 Duke Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Corporation (NYSE NYSE See: New York Stock Exchange :DRE DRE Digital rectal examination. Mentioned in: Rectal Examination ) reported today that net income available for common shareholders for the third quarter of 2002 was $39.2 million on revenues of $194.0 million, compared to $77.1 million on revenues of $198.7 million for the third quarter last year. On a per share basis, third quarter net income available for common shareholders was $0.29 per share compared with $0.58 per share for the third quarter of 2001. Approximately $0.17 per share of the decline in Duke's quarterly net income is attributable to $30.7 million of net gains on sales of depreciable depreciable Of, relating to, or being a long-term tangible asset that is subject to depreciation. property in the third quarter of 2001 compared to $3.5 million of such gains in the third quarter of 2002. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ("FFO FFO See: Funds from operations ") were $92.6 million for the third quarter of 2002 versus $104.5 million for the same period in 2001. On a per share basis, third quarter FFO was $0.59 compared to $0.67 for the third 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. Additionally, the Company's Board of Directors declared a quarterly dividend of $.455 per common share, or $1.82 per share on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. The dividend is payable on November 29, 2002 to common shareholders of record on November 14, 2002. The Board also declared today the following dividends on the Company's outstanding preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. :
NYSE Quarterly
Class Symbol Amount/Share Record Date Payment Date
-------- ---------- ------------ ------------- -------------
Series B Not Listed $.99875 Dec. 17, 2002 Dec. 31, 2002
Series D DREPRD $.46094 Dec. 17, 2002 Dec. 31, 2002
Series E DREPRE $.51563 Dec. 17, 2002 Dec. 31, 2002
Series I DREPRI $.52813 Dec. 17, 2002 Dec. 31, 2002
Property information at September 30, 2002 was as follows: -- The Company's 880 stabilized in-service properties totaling 100 million square feet were 90.2 percent leased. -- The Company's value creation pipeline at September 30, totaled $295 million including $148 million of developments with expected stabilized returns averaging 10.6 percent that Duke plans to own indefinitely after completion; $52 million of developments with expected stabilized returns averaging 11.8 percent that the Company plans to sell within approximately one year of completion; and a $95 million backlog of third-party construction volume with an average pre-tax profit margin of 11.7 percent. -- Including recently completed developments that have not reached stabilization and developments still under construction, the Company's total portfolio at the end of the third quarter consisted of more than 107 million square feet that were 86.8 percent leased. The Company also disclosed the following information for the third quarter of 2002: -- Duke renewed 75 percent of leases up for renewal, totaling 2.3 million square feet, on which it attained a 3.2 percent growth in net effective rents. -- Year-to-date same property net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for 2002 increased 0.8 percent. -- In two separate offerings, Duke issued $200 million of 10-year unsecured notes in the third quarter with an average effective interest rate of 5.86 percent. -- During the quarter, the Company repaid $50 million of unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. with an interest rate of 7.25 percent that matured, and it purchased or redeemed $53 million of preferred securities at an average dividend rate of 8.0 percent. This included $18 million of the Company's Series B preferred stock and $35 million of its Series G preferred units. Additionally, as previously announced, on October 10 the Company redeemed $150 million of its 8.0 percent Series F preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . -- The Company's interest and fixed-charge coverage ratios Fixed-Charge Coverage Ratio A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated as the following: in the third quarter were 4.4 and 2.9, respectively, and its debt-to-total market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. ratio was 30.0 percent at September 30, 2002. Commenting on Duke's third quarter performance, Tom Hefner, Chairman and Chief Executive Officer, stated, "Market conditions remained difficult this past quarter as our overall occupancy slipped another five basis points. This shows a delay in the economic recovery and confirms our opinion that occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) are at or near the bottom for this cycle. Amidst a·midst prep. Variant of amid. [Middle English amiddes : amidde; see amid + -es, adverbial suffix; see -s3.] this difficult environment, however, our people stepped up and signed almost 350 new leases and renewals for more than 5.4 million square feet during the quarter. We also booked more third-party construction business and build-to-suit developments during the third quarter than we did in the entire first half of the year. While business conditions are weak and may deteriorate de·te·ri·o·rate v. 1. To grow worse in function or condition. 2. To weaken or disintegrate. further, we are still fighting to create value and meet the needs of our clients like we always have, and our balance sheet remains among the strongest in the industry." When used in this press release, the word "believes," "expects," "estimates" and similar expressions are intended to identify forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . 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 relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc environmental matters and liquidity of real estate investments. Readers are advised to refer to Duke's Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with a total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of $6.2 billion at September 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 interests in more than 107 million square feet of properties. The Company also controls approximately 3,900 acres of undeveloped land that can support approximately 59 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 September 30, 2002 supplemental information fact book will be available after 7:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. 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 New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of time) to discuss its third 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 Nine Months Ended
September 30 September 30
----------------------- -----------------------
Operating Results 2002 2001 2002 2001
----------------------------------------------------------------------
Revenues from
continuing operations $193,977 $198,680 $595,125 $607,974
Earnings from
rental operations 55,118 60,703 170,806 191,922
Earnings from
service operations 3,483 11,840 26,598 30,355
Net income - continuing
operations 50,925 89,897 165,665 224,692
Net income - common
shareholders 39,172 77,102 132,978 185,547
Funds from
operations - Basic 80,649 88,881 256,763 262,227
Funds from
operations - Diluted 92,577 104,541 296,098 309,539
Per Share:
Net income - common
shareholders - Basic
Continuing operations $0.29 $0.59 $0.98 $1.43
Discontinued Operations $0.00 $0.00 $0.02 $0.01
Total $0.29 $0.59 $1.00 $1.44
Net income - common
shareholders - Diluted
Continuing operations $0.29 $0.58 $0.96 $1.41
Discontinued Operations $0.00 $0.00 $0.02 $0.01
Total $0.29 $0.58 $0.98 $1.42
Funds from
operations - Basic $0.60 $0.68 $1.92 $2.03
Funds from
operations - Diluted $0.59 $0.67 $1.88 $1.98
Dividend payout ratio of
funds from operations 77.1% 67.2% 72.3% 67.2%
Weighted average shares
outstanding
Basic 134,818 130,104 133,659 129,219
Diluted 157,405 156,569 157,232 155,995
----------------------- -----------------------
Sept. 30 Dec. 31
Balance Sheet Data 2002 2001
----------------------------------------------------------------------
Net real estate investments $4,605,112 $4,703,746
Total assets 5,299,464 5,330,033
Total debt 1,864,109 1,814,856
Shareholders' equity 2,799,494 2,785,009
Common shares outstanding at end of period 134,887 131,416
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion