Battle Each Other Real Estate News Secondly Quarter 2014 Outcomes – Yahoo Finance

Building Dispositions Building dispositions totaled $278 million in the second quarter and were comprised of the following: Wholly-Owned Properties Six suburban office properties in Cincinnati, Ohio, which were 96 percent leased and totaled 1,040,000 square feet, for $150 million; Four industrial properties in Minneapolis, Cincinnati and Savannah totaling 704,000 square feet, for $28 million. Joint Venture Property An 86 percent-leased, 436,000 square-foot office tower in Atlanta, Georgia, from an unconsolidated joint venture for a total sales price of $170 million, the company’s share of which was $100 million. 2014 Earnings Guidance The company revised its previous Core FFO guidance for 2014 to a range of $1.15 to $1.19 per share, compared to previous guidance of $1.12 to $1.18 per share.Additionally, the following assumptions within the detailed guidance, which is available through the Investor Relations-Financials section of the company’s website, were revised in connection with the revision to 2014 Core FFO guidance: The guidance for AFFO per share was revised from a range of $0.91 to $0.97 per share to a range of $0.93 to $0.97 per share; The low-end estimate for average in-service occupancy was increased from 93.25 percent to 93.75 percent; The estimate for building acquisitions was decreased from a range of $150 million to $300 million to a range of $100 million to $200 million; The estimate for development starts was increased from a range of $350 million to $450 million to a range of $500 million to $600 million; The estimate for building disposition proceeds was increased from a range of $500 million to $700 million to a range of $600 million to $800 million. Mr. Oklak stated, “The strong start for the first six months of 2014 caused us to increase our annual guidance in almost every area.With our current backlog of leasing and development activity, we also expect strong performance in the second half of the year.” Dividends Declared Our board of directors declared a quarterly cash dividend on our common stock of $0.17 per share, or $0.68 per share on an annualized basis. The second quarter dividend will be payable August 29, 2014 to shareholders of record on August 14, 2014. The board also declared the following dividends on our outstanding preferred stock: Class FFO and AFFO Reporting Definitions FFO: FFO is computed in accordance with standards established by NAREIT. NAREIT defines FFO as net income (loss) excluding gains (losses) on sales of depreciable property, impairment charges related to depreciable real estate assets, and extraordinary items (computed in accordance with generally accepted accounting principles (“GAAP”)); plus real estate related depreciation and amortization, and after similar adjustments for unconsolidated joint ventures. The company believes FFO to be most directly comparable to net income as defined by GAAP. The company believes that FFO should be examined in conjunction with net income (as defined by GAAP) as presented in the financial statements accompanying this release. FFO does not represent a measure of liquidity, nor is it indicative of funds available for the company’s cash needs, including the company’s ability to make cash distributions to shareholders. Core FFO: Core FFO is computed as FFO adjusted for certain items that are generally non-cash in nature and that materially distort the comparative measurement of company performance over time. The adjustments include gains on sale of undeveloped land, impairment charges not related to depreciable real estate assets, tax expenses or benefit related to (i) changes in deferred tax asset valuation allowances, (ii) changes in tax exposure accruals that were established as the result of the adoption of new accounting principles, or (iii) taxable income (loss) related to other items excluded from FFO or Core FFO (collectively referred to as “other income tax items”), gains (losses) on debt transactions, adjustments on the repurchase or redemption of preferred stock, gains (losses) on and related costs of acquisitions, and severance charges related to major overhead restructuring activities. Although the company’s calculation of Core FFO differs from NAREIT’s definition of FFO and may not be comparable to that of other REITs and real estate companies, the company believes it provides a meaningful supplemental measure of its operating performance. AFFO: AFFO is defined by the company as Core FFO (as defined above), less recurring building improvements and total second generation capital expenditures (the leasing of vacant space that had previously been under lease by the company is referred to as second generation lease activity) related to leases commencing during the reporting period and adjusted for certain non-cash items including straight line rental income and expense, non-cash components of interest expense and stock compensation expense, and after similar adjustments for unconsolidated partnerships and joint ventures. Same-Property Performance The company includes same-property net operating income growth as a property-level supplemental measure of performance.The company utilizes same-property net income growth as a supplemental measure to evaluate property-level performance, and jointly-controlled properties are included at our ownership percentage. A description of the properties that are excluded from the company’s same-property measure is included on page 20 of our June 30, 2014 supplemental information. About Duke Realty Corporation Duke Realty Corporation owns and operates over 156.5 million rentable square feet of industrial and office assets, including medical office, in 22 major U.S. metropolitan areas. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty Corporation is available at http://www.dukerealty.com . Second Quarter Earnings Call and Supplemental Information Duke Realty Corporation is hosting a conference call tomorrow, July 31, 2014, at 3:00 p.m. EDT to discuss its second quarter operating results. All investors and other interested parties are invited to listen to the call. Access is available through the Investor Relations section of the company’s website. A copy of the company’s supplemental information will be available by 6:00 p.m. EDT today through the Investor Relations section of the company’s website. Cautionary Notice Regarding Forward-Looking Statements This news release may contain forward-looking statements within the meaning of the federal securities laws.All statements, other than statements of historical facts, including, among others, statements regarding the company’s future financial position or results, future dividends, and future performance, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should,” or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company’s abilities to control or predict. Such factors include, but are not limited to, (i) general adverse economic and local real estate conditions; (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, if at all; (iv) the company’s ability to raise capital by selling its assets; (v) changes in governmental laws and regulations; (vi) the level and volatility of interest rates and foreign currency exchange rates; (vii) valuation of joint venture investments, (viii) valuation of marketable securities and other investments; (ix) valuation of real estate; (x) increases in operating costs; (xi) changes in the dividend policy for the company’s common stock; (xii) the reduction in the company’s income in the event of multiple lease terminations by tenants; (xiii) impairment charges, (xiv) the effects of geopolitical instability and risks such as terrorist attacks; (xv) the effects of weather and natural disasters such as floods, droughts, wind, tornadoes and hurricanes; and (xvi) the effect of any damage to our reputation resulting from developments relating to any of items (i) – (ix). Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company’s filings with the Securities and Exchange Commission.The company refers you to the section entitled “Risk Factors” contained in the company’s Annual Report on Form 10-K for the year ended December 31, 2013. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.
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