Duke-Weeks Announces Capital Recycling Totals for 2000; Company Achieves 2.5 Percent Spread on New Developments.

Business Editors

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 18, 2001

Duke-Weeks Realty Corporation (NYSE:DRE) announced today that it sold $52 million of properties in the fourth quarter of 2000 in addition to two previously announced joint ventures that the Company completed during the quarter. For 2000, Duke-Weeks recycled $765 million of capital at an average capitalization rate of 9.2 percent. This compares to a budget of $400 million at the beginning of the year.

The proceeds from Duke-Weeks' capital recycling activity were used mostly to fund the Company's development pipeline. During 2000, Duke-Weeks began $600 million of new developments with an expected stabilized return of 11.7 percent, or 2.5 percent above its disposition cap rates. The remaining proceeds were used to further strengthen the Company's balance sheet. During 2000, Duke-Weeks' debt-to-total market capitalization ratio declined from 38.2 percent at the beginning of the year to approximately 31.5 percent at December 31, 2000. Duke-Weeks also ended 2000 with a $291 million portfolio of primarily build-to-suit developments that are slated for sale over the next several quarters.

Commenting on the Company's capital recycling activity for 2000, Thomas L. Hefner, Duke-Weeks' Chairman and Chief Executive Officer, said,

"Our ability to maintain double-digit growth and even reduce

leverage while far exceeding our original disposition budget says

a lot about our Company. Because of this success, we are better

positioned against a potential slowing economy and we will look to

continue to self-fund our business for the foreseeable future. We

will also continue to target at least a two percent spread between

new development yields and disposition cap rates."

Duke-Weeks Realty Corporation is one of the largest office and industrial real estate companies in the United States and has the longest ongoing record in the industry (20 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.