Duke Realty Announces Significant 4th Quarter Development Transactions and Revises Guidance for Full Year 2020 Development Starts
INDIANAPOLIS, Dec. 07, 2020 (GLOBE NEWSWIRE) -- Duke Realty Corporation (NYSE: DRE, or the “Company”), the largest domestic-only logistics REIT, today announced significant development transactions since the start of the fourth quarter 2020. As a result of this transaction activity, the Company has increased its full year guidance for 2020 development starts to a range of $775 to $850 million from the previous range of $650 to $800 million.
Executed two (2) leases in speculative development projects in the under construction pipeline, with scheduled project delivery dates not until the second quarter of 2021. The following lease activity raises the pre-leasing level of the September 30th, 2020 under construction pipeline, to 76 percent, from the reported 63 percent level at the end of the third quarter period.
- A 622,000 square foot lease in Northern New Jersey to a leading national home furnishings retailer seeking to expand its supply chain network, to take 100 percent of the space in the facility.
- A 290,000 square foot lease in the Southern California South Bay submarket to a major national beverage distributor, to take 100 percent of the space in the facility.Started seven (7) development projects since the end of the third quarter, totaling $405 million that are 73 percent pre-leased in aggregate, comprised of:
- Two (2) speculative developments totaling 649,000 square feet located in the Southern California Inland Empire West and San Gabriel Valley submarkets.
- Signed leases for five (5) build-to-suit development starts totaling 1.75 million square feet located in the Southern California, Northern California, Dallas, Columbus, and Indianapolis markets. The leases were executed with existing customers in the e-commerce business, as well as a new customer in the global tire manufacturing and distribution business.
“As I indicated on our last earnings call, our build-to-suit prospect list, and the leasing prospects for our speculative developments in progress were looking very strong, so we’re pleased to announce this transaction activity,” said Jim Connor, Duke Realty chairman and CEO. “The credit goes to our best-in-class regional operating teams for executing these significant transactions with both new and existing customers. Even after these transactions we continue to have an active pipeline of build-to-suit prospects. These leases and new developments will continue to drive strong earnings growth in 2021 and 2022 and make further progress in our strategic plan to grow in Tier 1 markets.”
“The announced transactions, including the year-to-date total as of September 30th, brings the Company’s total development starts for 2020 to 5.8 million square feet and a projected $780 million in total project costs, with an initial pre-leasing level of 64 percent,” Connor continued. “With this increase in our development guidance, all of our metrics that were revised during the course of the year are now above our original 2020 guidance, which speaks volumes about the quality of our portfolio and the strength of our operating teams.”
About Duke Realty Corporation
Duke Realty Corporation owns and operates approximately 159 million rentable square feet of industrial assets in 20 major logistics markets. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is a member of the S&P 500 Index. More information about Duke Realty Corporation is available at www.dukerealty.com.
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 although not all forward looking statements may contain such words. 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 and trade wars; (xv) the effects of natural disasters, including the current pandemic caused by the COVID-19 outbreak, as well 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) – (xv). 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, 2019. 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. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.
The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.
Contact Information:
Investors:
Ron Hubbard
317.808.6060
Media:
Gene Miller
317.808.6195
