Duke Realty Announces Significant 4th Quarter Development Transactions and Revises Guidance for Full Year 2020 Development St...
December 07 2020 - 6:45AM
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
Hubbard317.808.6060
Media:Gene Miller317.808.6195
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