Duke-Weeks Announces 13.0 Percent Increase in Second Quarter FFO Per Share, its 19th Consecutive Quarter of Double-Digit Growth.Business Editors INDIANAPOLIS--(BUSINESS WIRE)--July 26, 2000 Duke-Weeks 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 ) YTD See Year-to-date. YTD See year to date (YTD). Same Store Growth Tops Six Percent 10.3 Percent Increase in Common Stock Dividend Also Announced Duke-Weeks Realty Corporation (NYSE:DRE) reported today that 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 ") increased 62.1 percent to $78.8 million for the second quarter of 2000 versus $48.6 million for the same period in 1999. On a per share basis, FFO increased 13.0 percent to $0.61 per share in the second quarter of 2000 from $0.54 per share for the second quarter of 1999. This is the Company's nineteenth consecutive quarter of double-digit growth in FFO per share. Net income available for common shareholders for the second quarter of 2000 increased to $45.5 million on revenues of $203.4 million, up from $29.6 million on revenues of $116.0 million for the second quarter last year. On a per share basis, second quarter net income available for common shareholders increased 9.1 percent to $0.36 per share compared with $0.33 per share for the second quarter of 1999. All per share amounts reported are 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. with basic per share information also included in the financial table accompanying this press release. Duke-Weeks also announced today that its Board of Directors increased its quarterly dividend to $0.43 per share, payable on August 31, 2000, to common shareholders of record on August 16, 2000. The new dividend is a 10.3 percent increase over the previous amount and equals $1.72 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. This is the Company's eighth dividend increase since its October 1993 public offering and the fourth year in a row of dividend increases greater than 10 percent. 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 A DREPRA $.56875 August 17, 2000 August 31, 2000
Series B Not Listed $.99875 September 15, 2000 September 29, 2000
Series D DREPRD $.46094 September 15, 2000 September 29, 2000
Series E DREPRE $.51563 September 15, 2000 September 29, 2000
Series F DREPRF $.50000 October 17, 2000 October 31, 2000
Commenting on Duke-Weeks' second quarter performance, Tom Hefner, Chairman and Chief Executive Officer, stated, "On top of another quarter of excellent earnings, we are once again delighted to reward our shareholders with the Company's fourth double-digit dividend increase in as many years while, at the same time, maximizing the amount of earnings that we can retain and reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. for future growth. Business is excellent. Last year's merger with Week's Corporation has clearly gone well. Going forward, we are excited about our opportunity to continue to lead the industry in consistent earnings growth by simply blocking and tackling in our existing markets, and using internal cash flow and asset dispositions to fund our highly profitable development pipeline." Property information at June 30, 2000 was as follows: -- The Company's 886 in-service properties totaling 95.8 million square feet were 92.7 percent leased compared to 91.2 percent leased at March 31, 2000. -- The Company had 7.5 million square feet of properties under development that were 44 percent pre-leased with an estimated cost of $551 million. The pipeline includes $455 million of developments with an expected stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. return of 11.6 percent that Duke-Weeks plans to own after completion and $97 million in its build-to-suit for sale portfolio. -- Including projects under development, the Company's total portfolio at the end of the second quarter consisted of 936 properties totaling more than 103 million square feet. The Company also disclosed the following information for the second quarter of 2000: -- Duke-Weeks renewed 79 percent of leases up for renewal, totaling 2.6 million square feet of renewals. -- 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 2000 increased 6.1 percent. -- Property sales through the second quarter of 2000 were $277 million at an average capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. of 9.2 percent. -- Duke-Weeks' 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 second quarter were 3.9 and 2.7, respectively, and its debt to total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. ratio was 37.5 percent at June 30, 2000. 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 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 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-Weeks' 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 March 29, 1996 for additional information concerning these risks. Duke-Weeks Realty Corporation is one of the largest office and industrial 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. and has the longest ongoing record in the industry (19 consecutive quarters) of double-digit growth in funds from operations per share. Offering a complete range of real estate products and services, Duke-Weeks produces more than $800 million in annual revenue from approximately 5,000 tenants and focuses on building dominant market positions in each of its 13 geographic platforms across the Midwest and the Sunbelt. Duke-Weeks owns interests in more than 103 million square feet of properties, has approximately 1,500 employees and owns or controls approximately 4,000 acres of undeveloped land that can support more than 60 million square feet of future development. Visit Duke-Weeks on the web at www.dukereit.com A copy of the Company's second quarter 2000 supplemental information fact book will be available after 8:00 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.dukereit.com. These materials are also available upon written request to: Thomas K. Peck peck: see English units of measurement. Vice President, Investor Relations Investor relations The process by which the corporation communicates with its investors. Duke-Weeks Realty Corporation 600 East 96th Street, Suite 100 Indianapolis, IN 46240
Duke-Weeks Realty Corporation
Financial Highlights
(in thousands, except per share data)
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Three Months Ended Six Months Ended
June 30 June 30
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Operating Results 2000 1999 2000 1999
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Revenues $203,449 $116,041 $392,248 $230,295
Earnings from rental
operations 55,061 39,909 109,973 76,008
Earnings from service
operations 10,953 3,582 16,329 8,618
Net income - common
shareholders 45,525 29,596 94,384 56,990
Funds from operations -
Basic 78,790 48,624 153,820 93,484
Funds from operations -
Diluted 93,880 56,283 183,486 109,356
Per Share:
Funds from operations -
Basic $ 0.62 $ 0.55 $ 1.22 $ 1.07
Funds from operations -
Diluted $ 0.61 $ 0.54 $ 1.20 $ 1.06
Net income - common
shareholders - Basic $ 0.36 $ 0.33 $ 0.75 $ 0.65
Net income - common
shareholders - Diluted $ 0.36 $ 0.33 $ 0.74 $ 0.65
Dividend payout ratio 70.5% 72.2% 68.3% 68.9%
Weighted average shares
outstanding
Basic 126,597 88,353 126,334 87,367
Diluted 153,680 103,914 153,253 103,536
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June 30 December 31
Balance Sheet Data 2000 1999
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Net real estate investments $5,144,190 $5,046,809
Total assets 5,729,836 5,486,238
Total debt 2,349,696 2,113,476
Shareholders' equity 2,681,859 2,668,597
Common shares outstanding at end of period 126,760 125,823
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