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.