{"id":6110,"date":"2022-05-17T18:54:35","date_gmt":"2022-05-17T23:54:35","guid":{"rendered":"https:\/\/1reason.com\/re\/duke-realty-reports-first-quarter-2022-results\/6110\/"},"modified":"2022-05-18T13:54:35","modified_gmt":"2022-05-18T18:54:35","slug":"duke-realty-reports-first-quarter-2022-results","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/duke-realty-reports-first-quarter-2022-results\/6110\/","title":{"rendered":"Duke Realty Reports First Quarter 2022 Results"},"content":{"rendered":"
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“We completed the first quarter of 2022 with record levels of in-service and stabilized occupancy and made significant leasing progress in our development pipeline,” said Jim Connor, Chairman and Chief Executive Officer. “Leasing volume totaled 7.7 million square feet for the quarter, which was impressive considering that no build-to-suit activity was included. We finished the quarter with our total in-service portfolio 99.1 percent leased and our stabilized portfolio 99.4 percent leased. We only had one vacant second generation space greater than 100,000 square feet in our entire portfolio at March 31, 2022, and 15 of our 19 markets were more than 99 percent leased. Of the total 5.6 million square feet of speculative development projects that we have delivered in the last twelve months, 5.3 million square feet have been fully leased.<\/p>\n

The leases that we executed during the quarter included, on average, 3.6 percent annual rent escalations. Rent growth on second generation leasing activity was 49.2 percent on a net effective basis and 29.5 percent on a cash basis, which are our highest levels reported for a quarter. This level of rent growth exemplifies the broad-based rent growth across all of our markets, as only 18 percent of our second generation leasing activity was in Coastal Tier One markets. Our total portfolio lease mark-to-market now stands at 48 percent, which will be a large contributor to future Core FFO growth.<\/p>\n

Rental rate growth on second generation leases, annual lease escalations, the expiration of free rent periods and increased commencement occupancy in our same property portfolio drove our 7.3 percent growth in same-property net operating income, on a cash basis, compared to the first quarter of 2021.”<\/p>\n

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

Complete reconciliations, in dollars and per share amounts, of (i) net income to funds from operations (“FFO”), as defined by Nareit, as well as to Core FFO, and (ii) earnings before income taxes to same property net operating income, on a cash basis, are included in the financial tables included in this release.<\/p>\n