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8-K - FORM 8-K - DCT Industrial Trust Inc.d8k.htm
EX-99.2 - SUPPLEMENTAL INFORMATION - DCT Industrial Trust Inc.dex992.htm

Exhibit 99.1

LOGO

DCT INDUSTRIAL TRUST® REPORTS FOURTH QUARTER

AND 2009 FULL-YEAR RESULTS

DENVER, Colo., February 11, 2010 — DCT Industrial Trust® (NYSE: DCT), a leading industrial real estate investment trust, today announced financial results for the three months and year ended December 31, 2009.

Funds from operations (FFO) attributable to equity holders for the fourth quarter totaled $26.5 million, or $0.11 per diluted share, compared with $20.6 million, or $0.10 per diluted share, reported for the fourth quarter of 2008. FFO includes the previously announced non-cash charge for termination of its 2006 Outperformance Plan of $1.4 million or $0.01 per diluted share recorded in the fourth quarter of 2009.

FFO for the year ended December 31, 2009 was $108.5 million, or $0.48 per diluted share, compared with $114.0 million, or $0.55 per diluted share reported for the year ended December 31, 2008. Excluding $0.02 per share of severance costs and impairment losses, FFO was $0.50 per diluted share for the year ended December 31, 2009.

Net loss attributable to common stockholders for the fourth quarter of 2009 was $(0.02) per diluted share, compared with net loss attributable to common stockholders of $(0.07) per diluted share reported for the fourth quarter of 2008. Net loss attributable to common stockholders for the year ended December 31, 2009 was $(0.10) per diluted share, compared with net income attributable to common stockholders of $0.05 per diluted share for the year ended December 31, 2008.

“Fourth quarter results were consistent with our guidance and reflect improved economic conditions and the early stages of stabilization in the real estate markets,” commented Phil Hawkins, President and Chief Executive Officer of DCT Industrial Trust. “The pace of leasing activity increased and our customers’ outlooks continue to be more positive while tenant credit issues have slowed materially compared to earlier in the year.”

518 17TH STREET, 8TH FLOOR DENVER, CO 80202

303.597.2400 DCTINDUSTRIAL.COM


Balance Sheet

DCT continues to maintain a strong financial position with a fixed charge coverage ratio of 3.0 times in the fourth quarter of 2009 and consolidated net debt to book value of total assets (less cash and before depreciation and amortization) of 36.2% as of December 31, 2009. For the year ended December 31, 2009, DCT’s fixed charge coverage ratio was 2.9 times.

DCT Industrial has continued to make progress in extending its debt maturities. The Company has received commitments or has closed refinancing of $123.0 million of 2011 and 2012 secured debt maturities resulting in an extension for an average of 9.6 years at a 6.14% interest rate. In conjunction with these transactions, DCT Industrial will repay $91.9 million and receive a release of mortgages on 14 properties.

Operating Portfolio

As of December 31, 2009, DCT owned 375 consolidated operating properties, comprising 52.9 million square feet. Net operating income was $44.0 million in the fourth quarter of 2009, compared with $46.4 million reported for the fourth quarter of 2008.

DCT’s consolidated operating portfolio average occupancy was 87.9% for the fourth quarter of 2009, compared with 87.8% for the third quarter of 2009. For the year ended December 31, 2009, occupancy of the operating portfolio averaged 89.1% compared to 92.5% for 2008.

Fourth quarter 2009 same store net operating income declined 8.3% on a cash basis and 9.1% on a GAAP basis, excluding revenue from lease terminations, when compared to the same period a year ago. For the full year 2009, same store net operating income declined 6.4% on a cash basis and 7.8% on a GAAP basis. Occupancy of the same store properties averaged 87.5% in the fourth quarter of 2009 compared to 92.3% in the fourth quarter of 2008 and 88.8% for full year 2009 compared to 92.6% for 2008.

The pace of leasing activity was healthy in the fourth quarter of 2009 with 3.0 million square feet of leases signed in the operating portfolio with a total of 9.7 million square feet of leases signed during 2009. Tenant retention was 76.3% in the fourth quarter of 2009 with rents on signed leases for which there was a prior tenant decreasing 9.0% on a cash basis and 5.3% on a GAAP basis. For the year ended December 31, 2009, tenant retention was 71.5% with rent growth on signed leases decreasing 7.3% and 1.2% on a cash on GAAP basis, respectively.

 

2


Disposition Activity

During the fourth quarter, DCT completed the sale of an 805,000 square foot bulk distribution building located in Indianapolis. In 2009, dispositions totaled $30.7 million, including the sale of three operating buildings. In addition, DCT’s joint venture at SCLA (Southern California Logistics Airport) sold 53.4 acres of land.

Dividend

DCT Industrial Trust’s Board of Directors has declared a $0.07 per share quarterly cash dividend, payable on April 15, 2010, to stockholders of record as of April 8, 2010.

Guidance

DCT Industrial has reaffirmed guidance for 2010 FFO of $0.36 to $0.44 per diluted share. The Company’s guidance excludes real estate gains, losses and impairments. Earnings per Common Share guidance is a net loss of $(0.05) to $(0.13) per diluted share.

Conference Call Information

DCT will host a conference call to discuss full year and fourth quarter 2009 results and its recent business activities on Friday, February 12, 2010 at 11:00 a.m. Eastern time. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing (800) 860-2442 or (412) 858-4600. A telephone replay will be available for one week following the call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 436976. A live webcast and replay of the conference call will be available in the investor relations section of the DCT website at www.dctindustrial.com.

Supplemental information will be available in the Investor Relations section of the Company’s website at www.dctindustrial.com or by e-mail request at investorrelations@dctindustrial.com. Interested parties may also obtain supplemental information from the SEC’s website at www.sec.gov.

 

3


About DCT Industrial Trust Inc.

DCT Industrial Trust (NYSE: DCT) is a leading industrial real estate company that owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico. As of December 31, 2009, the Company owned, managed or had under development 75.4 million square feet of assets leased to approximately 810 customers, including 14.6 million square feet managed on behalf of three institutional joint venture partners. Additional information is available at www.dctindustrial.com.

CONTACT: Stuart Brown, Chief Financial Officer, 303-597-2400 or

investorrelations@dctindustrial.com

 

4


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except per share information)

 

     December 31,
2009
    December 31,
2008
 
     (unaudited)        

ASSETS

    

Land

   $ 519,485      $ 511,730   

Buildings and improvements

     2,219,826        2,107,756   

Intangible lease assets

     116,243        187,605   

Construction in progress

     60,860        90,770   
                

Total Investment in Properties

     2,916,414        2,897,861   

Less accumulated depreciation and amortization

     (451,242     (417,404
                

Net Investment in Properties

     2,465,172        2,480,457   

Investments in and advances to unconsolidated joint ventures

     111,238        125,452   
                

Net Investment in Real Estate

     2,576,410        2,605,909   

Cash and cash equivalents

     14,792        19,681   

Notes receivable

     19,084        30,387   

Deferred loan costs, net

     4,919        5,098   

Straight-line rent and other receivables, net of allowance for doubtful accounts of $2,226 and $843, respectively

     32,776        31,747   

Other assets, net

     13,152        11,021   
                

Total Assets

   $ 2,661,133      $ 2,703,843   
                

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Liabilities:

    

Accounts payable and accrued expenses

   $ 36,261      $ 35,193   

Distributions payable

     16,527        16,630   

Tenant prepaids and security deposits

     16,292        17,601   

Other liabilities

     5,759        26,472   

Intangible lease liability, net

     5,946        6,813   

Line of credit

     —          —     

Senior unsecured notes

     625,000        625,000   

Mortgage notes

     511,715        574,634   
                

Total Liabilities

     1,217,500        1,302,343   
                

Equity:

    

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding

     —          —     

Shares-in-trust, $0.01 par value, 100,000,000 shares authorized, none outstanding

     —          —     

Common stock, $0.01 par value, 350,000,000 shares authorized, 208,046,167 and 175,141,387 shares issued and outstanding as of December 31, 2009 and December 31, 2008, respectively

     2,080        1,751   

Additional paid-in capital

     1,817,654        1,657,923   

Distributions in excess of earnings

     (591,087     (513,040

Accumulated other comprehensive loss

     (11,012     (22,463
                

Total Stockholders’ Equity

     1,217,635        1,124,171   

Noncontrolling interests

     225,998        277,329   
                

Total Equity

     1,443,633        1,401,500   
                

Total Liabilities and Equity

   $ 2,661,133      $ 2,703,843   
                

Total debt net of cash:

    

Senior unsecured notes and mortgage notes

   $ 1,136,715      $ 1,199,634   

Less cash and cash equivalents

     (14,792     (19,681
                

Net debt

   $ 1,121,923      $ 1,179,953   
                

Book value of total assets less cash and before depreciation:

    

Total assets

   $ 2,661,133      $ 2,703,843   

Less cash and cash equivalents

     (14,792     (19,681

Add back accumulated depreciation and amortization

     451,242        417,404   
                

Book value of total assets less cash and before depreciation and amortization

   $ 3,097,583      $ 3,101,566   
                

Percentage of debt to total assets

     42.7     44.4
                

Percentage of net debt to book value of total assets less cash and before depreciation and amortization

     36.2     38.0
                

 

5


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share information)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2009     2008     2009     2008  
     (unaudited)     (unaudited)        

REVENUES:

      

Rental revenues

   $ 59,803      $ 62,731      $ 241,305      $ 245,618   

Institutional capital management and other fees

     653        687        2,701        2,924   
                                

Total Revenues

     60,456        63,418        244,006        248,542   
                                

OPERATING EXPENSES:

        

Rental expenses

     7,577        8,035        32,807        31,096   

Real estate taxes

     8,197        8,257        34,818        33,128   

Real estate related depreciation and amortization

     28,772        34,040        110,441        115,739   

General and administrative

     8,221        5,955        29,224        21,799   

Impairment losses

     —          4,314        —          4,314   
                                

Total Operating Expenses

     52,767        60,601        207,290        206,076   
                                

Operating Income

     7,689        2,817        36,716        42,466   

OTHER INCOME AND (EXPENSE):

        

Equity in income of unconsolidated joint ventures, net

     533        1,084        2,698        2,267   

Impairment losses on investments in unconsolidated joint ventures

     —          (4,733     (300     (4,733

Loss on business combinations

     (169     —          (10,325     —     

Interest expense

     (12,607     (14,031     (52,792     (52,997

Interest income and other (expense)

     364        (3     1,918        1,257   

Income and other taxes

     178        67        (1,846     (824
                                

Loss From Continuing Operations

     (4,012     (14,799     (23,931     (12,564

Income (loss) from discontinued operations

     (317     (366     2,217        23,501   
                                

Income (Loss) Before Gain On Dispositions Of Real Estate Interests

     (4,329     (15,165     (21,714     10,937   

Gain (loss) on dispositions of real estate interests

     (56     (21     5        504   
                                

Consolidated Net Income (Loss)

     (4,385     (15,186     (21,709     11,441   

Net (income) loss attributable to noncontrolling interests

     550        2,552        3,124        (1,955
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (3,835   $ (12,634   $ (18,585   $ 9,486   
                                

EARNINGS PER COMMON SHARE – BASIC:

        

Loss From Continuing Operations

   $ (0.02   $ (0.07   $ (0.11   $ (0.06

Income from discontinued operations

     0.00        0.00        0.01        0.11   

Gain on dispositions of real estate interests

     0.00        0.00        0.00        0.00   
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (0.02   $ (0.07   $ (0.10   $ 0.05   
                                

EARNINGS PER COMMON SHARE – DILUTED:

        

Loss From Continuing Operations

   $ (0.02   $ (0.07   $ (0.11   $ (0.06

Income from discontinued operations

     0.00        0.00        0.01        0.11   

Gain on dispositions of real estate interests

     0.00        0.00        0.00        0.00   
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (0.02   $ (0.07   $ (0.10   $ 0.05   
                                

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

        

Basic

     207,291        174,241        192,900        171,695   
                                

Diluted

     207,291        174,241        192,900        171,695   
                                

Distributions declared per common share

   $ 0.07      $ 0.08      $ 0.30      $ 0.56   
                                

 

6


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Reconciliation of Net Income to Funds From Operations

(in thousands, except per share information)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2009     2008     2009     2008  

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (3,835   $ (12,634   $ (18,585   $ 9,486   

Adjustments:

        

Real estate related depreciation and amortization

     28,772        34,530        111,250        119,604   

Equity in (income) of unconsolidated joint ventures, net

     (533     (1,084     (2,698     (2,267

Equity in FFO of unconsolidated joint ventures

     2,348        2,273        11,807        6,806   

Loss (gain) on dispositions of real estate interests

     149        55        (1,354     (21,991

Loss on business combinations

     169        —          10,325        —     

Gain (loss) on dispositions of non-depreciated real estate

     (43     (52     783        219   

Noncontrolling interest in the operating partnership’s share of the above adjustments

     (3,625     (5,794     (17,907     (17,664

FFO attributable to unitholders

     3,124        3,311        14,881        19,795   
                                

Funds from operations attributable to common stockholders and unitholders, basic and diluted

   $ 26,526      $ 20,605      $ 108,502      $ 113,988   
                                

FFO per common share and unit, basic and diluted

   $ 0.11      $ 0.10      $ 0.48      $ 0.55   
                                

Adjustments for impairment and severance costs:

        

Impairment losses

   $ 51      $ 9,566      $ 981      $ 10,746   

Severance costs

     297        —          2,966        —     
                                

FFO, excluding impairment losses and severance costs, attributable to common stockholders and unitholders, basic and diluted

   $ 26,874      $ 30,171      $ 112,449      $ 124,734   
                                

FFO, as adjusted, per common share and unit, basic and diluted

   $ 0.11      $ 0.14      $ 0.50      $ 0.60   
                                

FFO weighted average common shares and units outstanding:

        

Common shares for earnings per share, basic:

     207,291        174,241        192,900        171,695   

Participating securities

     1,376        1,168        1,535        1,106   

Units

     28,215        33,381        30,660        35,868   
                                

FFO weighted average common shares, participating securities and units outstanding, basic:

     236,882        208,790        225,095        208,669   

Dilutive common stock equivalents

     366        6        189        3   
                                

FFO weighted average common shares, participating securities and units outstanding, diluted:

     237,248        208,796        225,284        208,672   
                                

 

7


Guidance:

 

     Full-Year Range
for 2010
 
     (low)     (high)  

Guidance(1):

    

Earnings per diluted share

   $ (0.13   $ (0.05

Real estate related depreciation and amortization(2)

     0.49        0.49   
                

FFO attributable to common shares per diluted share

   $ 0.36      $ 0.44   
                

 

(1)

Guidance excludes future real estate gains, losses or impairments.

(2)

Includes pro rata share of real estate depreciation and amortization from unconsolidated joint ventures.

The following table shows the calculation of our Fixed Charge Coverage for the three and twelve months ended December 31, 2009 and 2008 (in thousands):

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2009     2008     2009     2008  

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (3,835   $ (12,634   $ (18,585   $ 9,486   

Interest expense (1)

     12,607        14,061        52,851        53,219   

Pro rata share of interest expense from unconsolidated JVs

     230        923        3,478        2,809   

Real estate related depreciation and amortization (1)

     28,772        34,530        111,250        119,604   

Pro rata share of real estate related depreciation and amortization from unconsolidated JVs

     1,531        1,103        8,539        4,290   

Income and other taxes (1)

     (174     (66     1,855        850   

Stock-based compensation amortization

     3,234        969        8,603        3,427   

Noncontrolling interests (1)

     (550     (2,552     (3,124     1,955   

Loss on business combinations

     169        —          10,325        —     

Non-FFO (gains) losses on dispositions of real estate interests, net

     106        523        (570     (20,072

Impairment losses (1)

     51        9,566        981        10,746   
                                

Adjusted EBITDA (2)

   $ 42,141      $ 46,423      $ 175,603      $ 186,314   
                                

Calculation of Fixed Charges:

        

Interest expense excluding financing obligations (1)

   $ 12,607      $ 14,061      $ 52,851      $ 53,167   

Interest expense related to financing obligations

     —          —          —          52   

Capitalized interest

     1,461        1,989        6,064        7,899   

Amortization of loan costs and debt premium/discount

     (305     (307     (1,341     (180

Pro rata share of interest expense from unconsolidated JVs

     230        923        3,478        2,809   
                                

Total Fixed Charges

   $ 13,993      $ 16,666      $ 61,052      $ 63,747   
                                

Fixed Charge Coverage

     3.0        2.8        2.9        2.9   
                                

 

(1)

Includes amounts related to discontinued operations.

(2)

Adjusted EBITDA represents net income (loss) attributable to DCT common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, noncontrolling interest, impairment losses and excludes non-FFO gains on disposed assets. We use adjusted EBITDA to measure our operating performance and to provide investors relevant and useful information because it allows fixed income investors to view income from our operations on an unleveraged basis before the effects of irregular items and certain non-cash items, such as deprecation and amortization, non-FFO gains on dispositions of real estate interests and impairment losses.

 

8


The following table is a reconciliation of our property net operating income to our reported “Loss From Continuing Operations” for the three and twelve months ended December 31, 2009 and 2008 (in thousands):

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2009     2008     2009     2008  

Loss From Continuing Operations

   $ (4,012   $ (14,799   $ (23,931   $ (12,564

Income and other taxes

     (178     (67     1,846        824   

Interest income and other (expense)

     (364     3        (1,918     (1,257

Interest expense

     12,607        14,031        52,792        52,997   

Equity in (income) of unconsolidated joint ventures, net

     (533     (1,084     (2,698     (2,267

Loss on business combinations

     169        —          10,325        —     

General and administrative expense

     8,221        5,955        29,224        21,799   

Real estate related depreciation and amortization

     28,772        34,040        110,441        115,739   

Impairment losses

     —          4,314        —          4,314   

Impairment losses on investments in unconsolidated joint ventures

     —          4,733        300        4,733   

Institutional capital management and other fees

     (653     (687     (2,701     (2,924
                                

Total net operating income

     44,029        46,439        173,680        181,394   

Less net operating income – non-same store properties

     (2,491     (602     (8,188     (3,227
                                

Same store net operating income

     41,538        45,837        165,492        178,167   

Less revenue from lease terminations

     (168     (345     (2,018     (942
                                

Same store net operating income, excluding revenue from lease terminations

     41,370        45,492        163,474        177,225   

Less straight-line rents

     (193     (519     (427     (2,848

Add back amortization of above/(below) market rents

     210        138        1,211        1,065   
                                

Same store cash net operating income, excluding revenue from lease terminations

   $ 41,387      $ 45,111      $ 164,258      $ 175,442   
                                

 

9


Financial Measures

Net operating income (“NOI”) is defined as rental revenue, including reimbursements, less rental expenses and real estate taxes, and excludes depreciation, amortization, general and administrative expenses and interest expense. DCT Industrial considers NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, to be appropriate supplemental performance measures because they reflect the operating performance of DCT Industrial’s properties and exclude certain items that are not considered to be controllable in connection with the management of the property such as depreciation, interest expense, interest income, revenue from lease terminations and general and administrative expenses. However, these measures should not be viewed as alternative measures of DCT Industrial’s financial performance since they exclude expenses which could materially impact our results of operations. Further, DCT Industrial’s NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures. Additionally, lease termination revenue is excluded as it is not considered to be indicative of recurring operating expense. Therefore, DCT Industrial believes net income (loss) attributable to common stockholders, as defined by GAAP, to be the most appropriate measure to evaluate DCT Industrial’s overall financial performance.

DCT Industrial believes that net income (loss) attributable to common stockholders, as defined by GAAP, is the most appropriate earnings measure. However, DCT Industrial considers funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), to be a useful supplemental, non-GAAP measure of DCT Industrial’s operating performance. NAREIT developed FFO as a relative measure of performance of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is generally defined as net income (loss) attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains (or losses) from dispositions of operating real estate held for investment purposes and adjustments to derive DCT Industrial’s pro rata share of FFO of unconsolidated joint ventures. We exclude gains and losses on business combinations and include the gains or losses from dispositions of properties which were acquired or developed with the intention to sell or contribute to an investment fund in our definition of FFO. Although the NAREIT definition of FFO predates the guidance for accounting for gains and losses on business combinations, we believe that excluding such gains and losses is consistent with the key objective of FFO as a performance measure. We also present FFO excluding severance charges and impairment losses. We believe that FFO excluding severance and impairment losses is useful supplemental information regarding our operating performance as it provides a more meaningful and consistent comparison of our operating performance and allows investors to more easily compare our operating results without taking into account the non-routine and unrelated severance charges and impairment losses relating to the decrease in value of certain real estate assets and investments in unconsolidated joint ventures that we incurred during 2009 and 2008 primarily in connection with the current economic slow-down in the United States. Readers should note that FFO captures neither the changes in the value of DCT Industrial’s properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of DCT Industrial’s properties, all of which have real economic effect and could materially impact DCT Industrial’s results from operations. NAREIT’s definition of FFO is subject to interpretation and modifications to the NAREIT definition of FFO is common. Accordingly, DCT Industrial’s FFO may not be comparable to such other REITs’ FFO and FFO should be considered only as a supplement to net income (loss) attributable to common stockholders as a measure of DCT Industrial’s performance.

DCT Industrial calculates our fixed charge coverage calculation based on adjusted EBITDA, which represents net income (loss) attributable to DCT common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, noncontrolling interest, impairment losses and excludes non-FFO gains on disposed assets. We use adjusted EBITDA to measure our operating performance and to provide investors relevant and useful information because it allows fixed income investors to view income from our operations on an unleveraged basis before the effects of non-cash items, such as depreciation and amortization and stock-based compensation expense, and irregular items, such as non-FFO gains from the dispositions of real estate and impairment losses.

 

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Forward-Looking Information

The Company makes statements in this document that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect the Company’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond its control including, without limitation: the competitive environment in which the Company operates; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets, particularly in light of the current economic slow-down in the U.S. and internationally; decreased rental rates or increasing vacancy rates; defaults on or non-renewal of leases by tenants; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; the timing of acquisitions and dispositions; natural disasters such as hurricanes, fires and earthquakes; national, international, regional and local economic conditions, including, in particular the current economic slow-down in the U.S. and internationally; the general level of interest rates and the availability of debt financing, particularly in light of the recent disruption in the credit markets; energy costs; the terms of governmental regulations that affect the Company and interpretations of those regulations, including changes in real estate and zoning laws and increases in real property tax rates; financing risks, including the risk that the Company’s cash flows from operations may be insufficient to meet required payments of principal and interest; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; the consequences of future terrorist attacks; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Company; and other risks and uncertainties detailed from time to time in DCT Industrial Trust’s filings with the Securities and Exchange Commission. In addition, the Company’s current and continuing qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on its ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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