Duke Realty reports higher quarterly, annual profit

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Duke Realty Corp. reported a larger profit in the fourth quarter as it continued to sell off depreciable properties.

The Indianapolis-based real estate developer said Wednesday afternoon that it turned a profit of $24.3 million, or 7 cents per share, compared with a loss of $3 million, or 1 cent per share, in the same quarter of 2014.

Property sales totaled $146 million, Duke said.

Funds from operations for the quarter hit $103 million, or 29 cents per share, compared with $105 million, or 30 cents per share, in the same period of 2014. Duke attributed the decline to the dispositions, offset by improved property performance.

FFO was in line with analyst expectations. FFO is a common measure of performance for real estate investment trusts.

Duke’s fourth quarter revenue fell 10 percent, to $221.6 million, compared with $246.3 million in the fourth quarter of 2014.

Rental income fell 4 percent, to $198.5 million, while general contractor and service fee revenue fell 41.5 percent, to $23 million.

Duke‘s portfolio occupancy rate of 94 percent dropped from 95.8 percent in the previous quarter.

The company started seven projects totaling 2.4 million square feet.

For the entire year, Duke reported a profit of $615.3 million, or $1.77 per share, compared with $204.9 million, or 60 cents per share in 2014.

Revenue in 2015 fell 9.3 percent, to $949.4 million.

Duke shares fell 27 cents Wednesday prior to the earnings report, to $19.67 each.

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