IBJNews

Duke Realty improves third-quarter performance

Back to TopCommentsE-mailPrintBookmark and Share

Duke Realty Corp. had its best leasing quarter in three years and boosted overall occupancy to nearly 90 percent, helping the company post a profit for the fiscal period ended Sept. 30.

The Indianapolis-based real estate investment trust on Wednesday reported a third-quarter profit of $57.4 million on revenue of $371.3 million, compared with a loss of $314.2 million on total revenue of $320 million in the same period last year.

Duke reported funds from operations, a key measure for REITS, of $170.7 million, or 50 cents per share, compared with $159.8 million, or a loss of $1.02 per share, a year ago.

Much of the gain—$57.5 million—was attributed to the company’s acquisition of its partner’s share of a joint venture that owns 106 industrial buildings in the Midwest and Southeast. Duke paid $298.2 million for the 50-percent stake in Dugan Realty LLC. Duke Realty Limited Partnership already owns the other half of the venture.

Including that deal, the company said it completed $442 million in acquisitions during the quarter and sold $42.6 million worth of “non-strategic assets.” Duke also repurchased $53.7 million of preferred stock.

"We continue to make meaningful progress on our strategic plan, including the repositioning of our portfolio through acquisitions and dispositions of non-strategic assets," Chairman and CEO Dennis D. Oklak said in a prepared statement.

The company’s overall portfolio occupancy rate rose in the third quarter from 87.9 percent to 88.9 percent, and its tenant retention rate was 78.5 percent. Duke also executed leases for more than 8.5 million square feet of space.

The company adjusted its FFO outlook for the year to $1.11 to $1.15 per share, up from its previous the range of 95 cents to $1.15 per share.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  2. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

  3. I was visiting Indianapolis last month, and I was really, really surprised at how many panhandlers in Indy used signs. I currently live in Knoxville, and probably only one in 20 has a sign. They're still there panhandling, just no sign. I think I prefer the signs.

  4. For the record - the Kincaid's also own and operate the Fishers Banquet Center in the 96th & I-69 quadrant. The facility is mediocre at best. And there was a recent article stating they filed bankruptcy. Why are we wasting more money on a property just because it's a certain age to a family who can't run a business without running it to the ground and filing bankruptcy? I don't live in Hamilton County any more but if I still did I wouldn't have put any money towards them. It's a waste. Bull doze it down. The Kincaid's want the money to fund them for their mishaps with filing bankruptcy.

  5. Any estimated opening dates for Giordanno's?

ADVERTISEMENT