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Earnings Review and Free Research Report: Duke Realty’s Revenue Grew 7.2%; FFO Beat Estimates

Research Desk Line-up: National Storage Affiliates Trust Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Duke Realty Corp. (NYSE: DRE), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=DRE, following the Company's announcement of its third quarter fiscal 2017 operating results on October 25, 2017. The Indianapolis-based real estate investment trust's net income surged 43.8%, while it revised its guidance for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the REIT - Industrial industry. Pro-TD has currently selected National Storage Affiliates Trust (NYSE: NSA) for due-diligence and potential coverage as the Company reported on November 06, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on National Storage Affiliates Trust when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on DRE; also brushing on NSA. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended September 30, 2017, Duke Realty reported revenues of $194.83 million compared to revenues of $181.67 million in Q3 2016. The Company reported rental and related revenues of $169.6 million, which missed analysts' estimates of $170.3 million.

During Q3 2017, Duke Realty's net income was $165.27 million, or $0.46 per diluted share, compared to a net income of $112.01 million, or $0.32 per diluted share, for Q3 2016. The increased net income per diluted share was primarily the result of gains on property sales.

Duke Realty's funds from operations (FFO), as defined by the National Association of Real Estate Investment Trusts (NAREIT), were $93.23 million, or $0.26 per diluted share, for Q3 2017 compared to FFO of $111.60 million, or $0.31 per diluted share, for Q3 2016. The drop in FFO during the reported quarter was primarily due to a loss on debt extinguishment related to the early redemption of $129 million of unsecured notes in July 2017.

The Company's Core FFO was $0.30 per diluted share in Q3 2017 compared to $0.31 per diluted share for Q3 2016. Duke Realty's FFO topped Wall Street's estimates of $0.29 per share.

Operating Results

Within Duke Realty's industrial portfolio, total stabilized occupancy at September 30, 2017, was 98.0% compared to 97.7% at June 30, 2017, and 98.2% at September 30, 2016. The Company's total in-service occupancy at September 30, 2017, was 95.7% compared to 96.0% at June 30, 2017, and 97.4% at September 30, 2016.

Duke Realty's total occupancy, including properties under development, was of 93.2% at September 30, 2017, compared to 93.5% at June 30, 2017, and 95.2% at September 30, 2016. The Company's tenant retention for the reported quarter was 70.2%.

For Q3 2017, Duke Realty reported a same-property net operating income growth of 2.2% on a y-o-y basis. The Company's total leasing activity was 5.9 million square feet for the reported quarter, and overall rent growth on new and renewal leases was 15.9% for Q3 2017.

Real Estate Activity

During Q3 2017, Duke Realty started $230 million of developments, which were 54% pre-leased in total. The Company finished the quarter with an 11.1 million square foot development pipeline, with total expected project costs of $696 million, and a pre-leasing level of 63%.

Owned Property

During Q3 2017, Duke Realty started $166 million of wholly-owned development projects totaling 2.4 million square feet, which were 66% pre-leased in total. These wholly-owned development starts were comprised of a speculative development project in the Lehigh Valley of Pennsylvania totaling 832,000 square feet; a 100% pre-leased expansion project in Southern California totaling 736,000 square feet; and a 100% pre-leased project in Dallas totaling 875,000 square feet.

Joint Venture Properties

During Q3 2017, Duke Realty's 50%-owned joint venture started a 708,000-square foot bulk industrial project in Indianapolis, which was 65% pre-leased at September 30, 2017, and subsequently fully leased, while another 50%-owned joint venture started a 674,000-square foot speculative project in Columbus.

Dispositions

During Q3 2017, Duke Realty's building dispositions totaled $301 million and included seven medical office buildings totaling 519,000 square feet. The Company also disposed three suburban office properties in Indianapolis, Indiana, totaling 391,000 square feet, which completed Duke Realty's exit from the Indianapolis office market.

Outlook

For FY17, Duke Realty revised its guidance for net income to $4.45 to $4.60 per diluted share from its previous guidance of $4.40 to $4.66 per diluted share. The Company also adjusted its guidance for NAREIT FFO to $1.22 to $1.29 per diluted share from its previous guidance of $1.20 to $1.33, and also revised its guidance for Core FFO to $1.21 to $1.25 per diluted share from its previous range of $1.20 to $1.26 per diluted share.

Stock Performance

On Wednesday, November 15, 2017, the stock closed the trading session at $28.70, falling 1.44% from its previous closing price of $29.12. A total volume of 1.85 million shares have exchanged hands. Duke Realty's stock price surged 0.63% in the last three months, 1.41% in the past six months, and 20.23% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 8.06%. The stock is trading at a PE ratio of 38.78 and has a dividend yield of 2.79%. At Wednesday's closing price, the stock's net capitalization stands at $10.21 billion.

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