Duke loss narrows, quarter meets expectations

Indianapolis-based Duke Realty Corp. on Wednesday reported a third-quarter loss of $28.2 million, or 11 cents per share, smaller than a loss of $32 million, or 13 cents per share, in the same quarter of 2011.

Funds from operations, or FFO, for the quarter hit $69.9 million, or 26 cents per share, which was in line with analyst expectations. That compared with $70.3 million, or 28 cents per share, in the year-ago quarter. FFO is a common measure of performance for real estate investment trusts.

Total revenue declined to $302.9 million in the third quarter from $312.3 million a year earlier.

Duke said it completed leasing of 7.4 million square feet of space, and its portfolio had an occupancy rate of 92.5 percent. Highlights during the quarter include the acquisition of a $342 million medical office portfolio; the company also launched $115 million of new developments.

On the financing side, Duke issued $300 million of 10-year, senior unsecured notes, with an effective rate of 3.93 percent, and issued about 5.8 million new shares of common stock for proceeds of $85 million.

Duke shares fell about 20 cents in early trading Thursday, to $14.29 each.

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