Property sales help boost Duke Realty’s profit

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Indianapolis-based Duke Realty Corp. reported a second-quarter profit late Wednesday afternoon of $61.5 million due in large part to gains from the sale of properties that included a large retail center in Florida.

The profit translates to 19 cents per share, compared to a loss of $28.5 million, or 11 cents per share, in the year-ago period.

Funds from operations, or FFO, for the quarter hit 27 cents per share, compared with 26 cents per share in the second quarter of 2012. FFO is a common measure of performance for real estate investment trusts.

The real estate developer’s quarterly revenue rose 5.6 percent, to $275.5 million. Rental income climbed more than $27 million, while general contracting and service-fee revenue decreased by nearly $13 million.

Duke Realty said its portfolio occupancy rate increased to 93.2 percent from 92.1 percent last quarter.

Highlights during the quarter included the acquisition of $405 million of bulk industrial buildings totaling 5.9 million square feet while generating $188 million of proceeds from the sale of a 391,000-square-foot retail center in South Florida.

Duke Realty also began $82 million of new developments, including a 206,000-square-foot suburban office project and three medical office buildings totaling 114,000 square feet.

Company shares closed Wednesday at $16.47 each, down 33 cents from the start of daily trading.
 

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