Indianapolis-based Duke Realty suffers second-quarter 2009 loss

The IBJ

Indianapolis-based Duke Realty Corp. late yesterday posted a 32-percent drop in its second-quarter funds from operations, a key performance measure for real estate investment trusts.

The office, industrial and health care developer reported FFO of $61.6 million, or 29 cents per share, compared with $91.1 million, or 59 cents a share, from the same time a year ago.

Excluding $18.7 million in charges and $1.5 million in gains from the repurchase of Duke bonds, adjusted FFO was 37 cents a share.  Analysts had expected 36 cents a share.

Duke said it expects full-year FFO to hit the lower end of its previous estimate of $1.42 to $1.64 a share.

The company lost $15 million in the quarter, or 16 cents a share, compared with profit of $36.2 million, or 11 cents a share, during the same quarter last year. Duke attributed the loss to impairment charges it incurred and higher depreciation expenses.

General and administrative expenses almost doubled, to $13.6 million, the company said.

Revenue from continuing operations for the quarter increased to $352.2 million, 13 percent higher than the previous year's quarter.

Capital raised through July exceeded $970 million, including $575 million from the sale of 75.2 million shares of common stock in a public offering that closed April 29.

"We are pleased that we have been able to raise nearly $1 billion of capital to date in 2009," Duke CEO Dennis D. Oklak said in a prepared statement. "We are focused on using funds to reduce leverage. We are on track with our capital plan and, as of mid-July, have a zero balance outstanding on our credit facility."