Duke Realty sees quarterly profit shrink on lower revenue

Duke Realty Corp. on Wednesday reported a smaller profit on less revenue in the first quarter, but its results still met or exceeded analyst expectations.

The real estate investment trust, based in Indianapolis, said it had funds from operations of $100 million, or 28 cents per share, in the quarter, compared with $109 million, or 31 cents per share, in the same period of 2016.

The FFO figure matched the average estimate of eight analysts surveyed by Zacks Investment Research. FFO  is a closely watched measure in the REIT industry. It takes net income and adds back items such as depreciation and amortization.

Duke said it had profit of $42.7 million, or 12 cents per share, down from $64.6 million, or 19 cents per share, a year ago.

The company posted revenue of $201.8 million in the period, topping forecasts from five analysts surveyed by Zacks, who expected revenue of $199.6 million. Revenue was $214.6 million a year ago.

"We are off to a great start to 2016 with continued solid operating results, highlighted by the lease up of speculative space and exceptionally strong renewal activity for the quarter," Duke CEO Jim Connor said in written remarks.

Duke shares closed at $22.26 each Wednesday, up 6 percent since the beginning of the year.