Duke Realty suffers loss on lower revenue

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Duke Realty Corp. suffered a $29 million loss on declining revenue in the second quarter as the commercial real estate market continued to struggle.

The Indianapolis-based real estate investment trust announced Thursday morning that it lost $29 million, or 12 cents per share, compared with a loss of $42.4 million, or 19 cents per share, in the same quarter a year earlier.

Revenue dipped 3 percent over last year's second quarter, to $363.1 million.

The company reported second quarter funds from operations of $76.4 million, or 29 cents per share, matching FFO from the prior-year period. FFO is a common performance measure used by real estate investment trusts.

Duke reaffirmed its 2011 FFO predictions of between $1.06 and $1.18 per share.

The occupancy rate for Duke’s portfolio of properties, including those under development, was 89.3 percent at the end of June, up slightly from 88.9 percent at the end of March.

Duke said its occupancy rate is at its highest level since 2005.

“During the second quarter, we continued to make meaningful progress in furthering our strategy as measured by the overall improvement in several of our key operating and capital metrics and continued repositioning of our assets,” CEO Dennis D. Oklak said in a prepared statement.

Company shares opened trading Thursday morning at $14.01, down from a 52-week high of $15.63 in May.
 

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