Duke Realty Corp. on Wednesday reported second-quarter financial results that topped Wall Street expectations.
The real estate investment trust, based in Indianapolis, said it had funds from operations of $116.6 million, or 32 cents per share, in the period, up from $107.4 million, or 30 cents per share, in the same quarter of 2016.
The results exceeded the average estimate of seven analysts surveyed by Zacks Investment Research, who predicted FFO of 30 cents per share.
FFO is a closely watched financial performance measure in the REIT industry. It takes earnings and adds back items such as depreciation and amortization.
The company reported a huge profit of $1.21 billion, or $3.38 per share, thanks to nearly $2.5 billion in building dispositions in the quarter. That was up from $108.5 million in profit, or 31 cents per share, a year ago.
The company this year sold off its medical office building business to Arizona-based Healthcare Trust of America Inc. for $2.8 billion in a strategic move to concentrate solely on its distribution business.
"I am happy to announce that we have substantially completed the previously announced sale of our medical office business, generating $2.45 billion in proceeds to date, with the remaining properties expected to close during the third quarter,” Duke CEO Jim Connor said. “This transaction generated significant stakeholder value and positions us for substantial future growth as the leading pure play domestic industrial REIT.”
Duke posted revenue of $189.4 million in the period, up from $184 million in last year’s second quarter.
The company said it expects full-year FFO in the range of $1.20 to $1.33 per share.
Shares in Duke closed Wednesday at $28.42 each, an increase of 7 percent since the beginning of the year.