Duke Realty Corp. saw higher profit in the second quarter, but a drop in funds from operations and lower revenue, the Indianapolis-based real estate developer said Wednesday afternoon.
Duke’s profit increased to $449.4 million, or $1.30 per share, compared with $127.7 million, or 38 cents per share, in the second quarter of 2014. Duke said the higher profit was primarily due to the recognition of gains on the sale of depreciable properties totaling $507 million during the quarter.
Duke’s second quarter revenue fell 17.6 percent, to $225.9 million, compared with the same quarter a year ago. Six analysts surveyed by Zacks Investment Research expected revenue of $221.5 million.
Funds from operations for the quarter hit $99.1 million, or 28 cents per share, compared with $102.6 million, or 30 cents per share, in the year-ago period. FFO is a common measure of performance for real estate investment trusts. FFO missed the average estimate of 11 analysts surveyed by Zacks by 1 cent.
Rental income dipped 1.4 percent, to $202 million, while general contracting and service-fee revenue fell 66 percent, to $23.9 million.
Duke saw its portfolio occupancy rate climb to 95.8 percent, up from 94.5 percent in the previous quarter.
The company made $1.4 billion in land dispositions during the quarter, including a $1.1 billion suburban office portfolio. It acquired a 100-percent leased 233,000-square-foot bulk industrial facility in the Lehigh Valley region of Pennsylvania for $20 million.
The company started 13 projects totaling 3.6 million square feet in the period.
Duke’s shares closed at $19.99 each prior to the earnings announcement, up 1.4 percent for the day.