UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2002 |
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OR |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the transition period from to . |
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Commission File Number: 1-9044
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DUKE REALTY CORPORATION |
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State of Incorporation: |
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IRS Employer Identification Number: |
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Indiana |
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35-1740409 |
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600
East 96th Street, Suite 100 |
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Telephone: (317) 808-6000 |
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(Address, including zip
code and telephone number, including area code, of principal |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
The number of Common Shares outstanding as of November 7, 2002 was 134,894,078 ($.01 par value).
DUKE REALTY CORPORATION
INDEX
PART I - FINANCIAL INFORMATION
DUKE REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except per share amounts)
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September 30, |
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December 31, |
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(Unaudited) |
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ASSETS |
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Real estate investments: |
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Land and improvements |
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$ |
588,960 |
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$ |
583,909 |
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Buildings and tenant improvements |
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4,137,102 |
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4,068,944 |
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Construction in progress |
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78,975 |
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154,086 |
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Investments in unconsolidated companies |
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325,320 |
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323,682 |
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Land held for development |
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321,290 |
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322,528 |
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5,451,647 |
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5,453,149 |
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Accumulated depreciation |
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(521,215 |
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(425,721 |
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Net real estate investments |
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4,930,432 |
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5,027,428 |
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Cash and cash equivalents |
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43,037 |
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9,483 |
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Accounts receivable, net of allowance of $3,518 and $2,820 |
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17,381 |
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23,142 |
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Straight-line rent receivable, net of allowance of $3,262 and $841 |
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49,504 |
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42,751 |
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Receivables on construction contracts |
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31,388 |
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30,077 |
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Deferred financing costs, net of accumulated amortization of $14,966 and $17,459 |
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12,310 |
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12,550 |
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Deferred leasing and other costs, net of accumulated amortization of $48,038 and $41,284 |
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101,138 |
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97,117 |
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Escrow deposits and other assets |
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114,274 |
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87,485 |
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$ |
5,299,464 |
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$ |
5,330,033 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Indebtedness: |
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Secured debt |
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$ |
308,911 |
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$ |
318,484 |
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Unsecured notes |
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1,526,198 |
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1,376,372 |
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Unsecured lines of credit |
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29,000 |
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120,000 |
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1,864,109 |
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1,814,856 |
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Construction payables and amounts due subcontractors |
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45,140 |
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54,735 |
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Accounts payable |
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160 |
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2,274 |
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Accrued expenses: |
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Real estate taxes |
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71,267 |
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51,462 |
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Interest |
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19,749 |
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24,313 |
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Other |
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45,632 |
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49,973 |
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Other liabilities |
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105,626 |
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117,577 |
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Tenant security deposits and prepaid rents |
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34,425 |
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34,644 |
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Total liabilities |
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2,186,108 |
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2,149,834 |
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Minority interest |
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313,862 |
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395,190 |
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Shareholders’ equity |
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Preferred shares ($.01 par value); 5,000 shares authorized |
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590,889 |
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608,664 |
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Common shares ($.01 par value); 250,000 shares authorized; |
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134,887 and 131,416 shares issued and outstanding |
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1,349 |
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1,314 |
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Additional paid-in capital |
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2,331,436 |
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2,251,246 |
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Accumulated other comprehensive income (loss) |
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(48 |
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(192 |
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Distributions in excess of net income |
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(124,132 |
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(76,023 |
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Total shareholders’ equity |
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2,799,494 |
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2,785,009 |
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$ |
5,299,464 |
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$ |
5,330,033 |
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See accompanying Notes to Condensed Consolidated Financial Statements
2
DUKE REALTY CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30,
(in thousands, except per share amounts)
(Unaudited)
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Three Months Ended |
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Nine Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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RENTAL OPERATIONS |
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Revenues: |
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Rental income |
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$ |
173,809 |
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$ |
169,980 |
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$ |
517,269 |
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