Duke Realty reports strong year-end results

Duke Realty Corp. reported a fourth-quarter profit almost 70 percent above last year's figure as it closed out its best leasing year since 2007 and finished with its highest annual portfolio occupancy rate since 2004.

The Indianapolis-based real estate investment trust on Wednesday reported a fourth-quarter profit of $25.8 million on revenue of $329.8 million, compared with a profit of $15.2 million on revenue of $327.6 million in the same period a year earlier.

For the year, the company earned $65.3 million on revenue of $1.4 billion, compared to a $271.5 million loss on revenue of $1.3 billion in 2009.

Duke Realty reported fourth-quarter funds from operations, a key measure for REITs, of $73.9 million, or 28 cents per share, compared with $72.6 million, or 31 cents per share, a year ago. The company reported $1.23 in FFO for the year, exceeding its forecast of between $1.11 and $1.15.

It expects 2011 FFO between $1.06 and $1.18.

During the quarter, the company reported closing on $441 million in acquisitions and generating $317 million from the sale of non-strategic assets. The acquisitions include a 4.9-million-square-foot office and industrial portfolio in Florida, a 190,000-square-foot medical office building in North Carolina and 582,000 square feet of industrial properties in Texas.

The sales included more than 1 million square feet of suburban office space and a 534,000-square-foot industrial building.

"Solid operational and financial performance, along with significant progress on our strategic plan to reposition our portfolio, resulted in a successful 2010 for Duke Realty despite a still challenging environment," Chairman and CEO Dennis D. Oklak said in a prepared statement.

The company’s overall portfolio occupancy rate rose in the fourth quarter to 89.1 percent, the best performance since 2004. Duke Realty leased 26 million square feet of space in 2010, its highest annual total since 2007.