{"id":5246,"date":"2022-02-15T22:20:47","date_gmt":"2022-02-16T04:20:47","guid":{"rendered":"https:\/\/1reason.com\/re\/duke-realty-reports-fourth-quarter-and-full-year-2021-results\/5246\/"},"modified":"2022-02-16T16:20:47","modified_gmt":"2022-02-16T22:20:47","slug":"duke-realty-reports-fourth-quarter-and-full-year-2021-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/duke-realty-reports-fourth-quarter-and-full-year-2021-results\/5246\/","title":{"rendered":"Duke Realty Reports Fourth Quarter and Full Year 2021 Results"},"content":{"rendered":"
26, 2022 (GLOBE NEWSWIRE) — Duke Realty Corporation (NYSE: DRE), the largest domestic-only logistics REIT, today reported results for the fourth quarter of 2021. <\/p>\n

“I am pleased to announce our strong fourth quarter operating results, completing an extremely successful year that included record company performance in several different metrics,” said Jim Connor, Chairman and Chief Executive Officer. “We delivered significant year-over-year growth in all of our earnings metrics, with Core FFO and AFFO increasing by 13.8 percent and 11.6 percent, respectively. Leasing volume totaled 8.9 million square feet for the fourth quarter, resulting in 33.5 million square feet for the full year, which is the highest level of annual leasing volume the company has ever executed. We concluded the year with our total in-service portfolio 98.1 percent leased, a company record and particularly impressive as it includes the delivery of 7.7 million square feet of development projects in 2021, which were on average 89 percent leased when placed into service throughout the year.<\/p>\n

Rental rate growth on second generation leases, combined with annual lease escalations and the expiration of free rent periods, drove 5.2 percent growth in same-property net operating income compared to the fourth quarter of 2020 and 5.3 percent growth compared to the full year 2020.<\/p>\n

Rent growth on second generation leasing activity in the quarter was 40.8 percent on a net effective basis, which is our highest quarterly growth ever, and 20.6 percent on a cash basis. This level of quarterly rent growth exemplifies the potential for rent growth across all of our markets, as only 3 percent of our second generation leasing activity during the quarter was in Coastal Tier One markets. Rent growth on second generation leasing for the full year was 35.3 percent on a net effective basis and 18.7 percent on a cash basis, which are both our highest-ever levels of annual growth. Supply and demand fundamentals continue to be exceptional in the logistics real estate business and asking rent levels have increased year-over-year at record levels. The in-place rental rates in our portfolio are significantly under current market rates, representing substantial embedded upside to drive strong same-property net operating income and Core FFO growth for the foreseeable future.”<\/p>\n

“Earlier this month we closed on the third contribution of assets to our joint venture with CBRE Global Partners, for which our share of the proceeds was $269 million,” stated Mark Denien, Executive Vice President and Chief Financial Officer. “We will use the proceeds from this contribution to finance the redemption next month of our $300 million of 3.75 percent unsecured notes, which were originally scheduled to mature in December 2024. After this redemption is completed, we will have no significant debt maturities until 2026 and ample liquidity to finance our continued growth. Finally, the outlook on our BBB+ credit rating from Standard and Poor’s was raised from stable to positive earlier this month, which we believe is a validation of our balance sheet management.”<\/p>\n

Quarterly Highlights<\/u><\/strong><\/p>\n

A complete reconciliation, in dollars and per share amounts, of net income to funds from operations (“FFO”), as defined by Nareit, as well as to Core FFO, is included in the financial tables included in this release.<\/p>\n