Duke Realty’s loss widens despite higher revenue

Duke Realty Corp. reported higher occupancy and tenant-retention rates in the second quarter, but it still lost more money
than it did in the same quarter a year ago.

The Indianapolis-based real estate investment trust on Wednesday reported a second-quarter net loss of $42.3 million on revenue
of $383.9 million compared to a loss of $32.4 million on revenue of $348.2 million in the second quarter a year ago.

Duke reported funds from operations, a key measure for REITS, of $40.7 million, or 17 cents per share, compared with $61.5
million, or 29 cents per share, during the same period a year ago.

The company’s overall portfolio occupancy rate rose in the past quarter from 87.5 percent to 87.9 percent, and its
tenant retention rate was over 76 percent.

During the quarter, the company made several moves to deleverage its balance sheet, including the repurchase of more than
$260 million in bonds. The company issued $250 million in new bonds in April.

Duke also raised $310.8 million in a sale of 26.5 million shares of common stock in June to purchase a joint venture partner’s
50-percent interest in Dugan Realty LLC. Duke now owns all of Dugan.

Dugan owns 106 industrial buildings totaling 20.8 million square feet in the Midwest and Southeast.

“The acquisition of quality industrial assets represents a significant step in our ongoing strategy to reposition our
portfolio,” Duke Chairman and CEO Dennis D. Oklak said in a written statement. “We also demonstrated our ability
to efficiently raise equity and debt during the quarter, which is a testament to our investors’ confidence in our overall
strategy and the progress that we have made to date.”

The company backed its FFO outlook for the year in the range of 95 cents to $1.15 per share.

Shares of Duke were up 26 cents Thursday morning, to $12.25 each.