Duke Realty reports smaller loss on gains from property sales

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Indianapolis-based Duke Realty Corp. reported a third-quarter loss late Wednesday afternoon of $6.1 million, smaller than the loss in the year-ago quarter, due to gains from property sales.

The loss translated to 2 cents per share, compared to a loss of $28.2 million, or 11 cents per share, in the same quarter last year.

Funds from operations, or FFO, for the quarter hit 28 cents per share, compared with 26 cents per share in the third quarter of 2012. FFO is a common measure of performance for real estate investment trusts.

The real estate developer’s quarterly revenue was nearly flat, at $291.7 million. Rental income climbed about $30 million, while general contracting and service-fee revenue decreased by $31 million.

Proceeds from property sales totaled $73 million, split between a medical office building, an industrial facility and 65 acres of undeveloped land.

Duke Realty said its portfolio occupancy rate held steady, at 93.4 percent in the third quarter compared with 93.2 percent the previous quarter.

Highlights during the quarter included $76 million of new developments consisting of a 534,000-square-foot industrial development in Columbus, Ohio, a 52,000-square-foot expansion to an existing industrial property in Chicago, a 204,000-square-foot office development in Raleigh, N.C., and a 49,000-square-foot medical office development in the Cincinnati area.

Duke Realty also completed $39 million of bulk industrial acquisitions.

Company shares closed Wednesday at $16.66, down 3 cents from the start of daily trading.


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  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

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