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

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8-K - FORM 8-K - DCT Industrial Trust Inc.	d249246d8k.htm
EX-99.1 - PRESS RELEASE - DCT Industrial Trust Inc.	d249246dex991.htm

Exhibit 99.2

LOGO

Table of Contents


Quarterly Highlights			2
Consolidated Statements of Operations			3
Consolidated Balance Sheets			4
Funds from Operations			5
Selected Financial Data			6
Property Overview			7-8
Consolidated Leasing Summary			9
Acquisition and Disposition Summary			10
Development Overview			11
Indebtedness			12
Capitalization and Fixed Charge Coverage			13
Institutional Capital Management Summary			14
Definitions			15-17

Forward Looking Statement

We make statements in this report 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. We intend 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 our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we 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 our control including, without limitation:

•

national, international, regional and local economic conditions, including, in particular, the continuing impact of the economic downturn and the strength of the economic recovery and the impact of the financial crisis in Europe;

•

the general level of interest rates and the availability of capital;

•

the competitive environment in which we operate;

•

real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;

•

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 fires, tornadoes, hurricanes and earthquakes;

•

energy costs;

•

the terms of governmental regulations that affect us and interpretations of those regulations, including the cost of compliance with those regulations, changes in real estate and zoning laws and increases in real property tax rates;

•

financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal, interest and other commitments;

•

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 or civil unrest;

•

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 us; and

•

other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

In addition, our current and continuing qualification as a real estate investment trust, or REIT, involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.

Third Quarter 2011

Page 1

Supplemental Reporting Package

Quarterly Highlights

Top 10 Markets⁽¹⁾

Total Consolidated


Market	ABR (millions)		Occupancy 9/30/11			Occupancy 9/30/10			Change
Atlanta	$	19.3		92.4	%		83.1	%		9.3	%
Southern California		19.1		99.2	%		91.5	%		7.7	%
Houston		17.0		96.5	%		89.3	%		7.2	%
Memphis		15.4		100.0	%		93.5	%		6.5	%
Dallas		14.0		86.6	%		87.0	%		-0.4	%
Cincinnati		12.6		83.4	%		78.0	%		5.4	%
Northern California		11.8		87.6	%		75.7	%		11.9	%
Baltimore/Washington DC		9.2		88.4	%		80.4	%		8.0	%
Columbus		9.0		85.1	%		79.8	%		5.3	%
Chicago		9.0		91.4	%		73.5	%		17.9	%

Total	$	136.4		91.4	%		83.5	%		7.9	%

2011 YTD Acquisitions

$163.3 Million Total Purchase Price⁽²⁾

(by market, in millions)

LOGO

Portfolio Occupancy (%)

Total Leasing Volume

(square feet in millions)

LOGO


Average Debt Maturity		Annual Change in Same Store NOI (%)

LOGO

(1)	Based on annualized base rent as of September 30, 2011.

(2)	Amounts are based on gross purchase price and include noncontrolling interests share of $9.8 million.

Third Quarter 2011

Page 2

Supplemental Reporting Package

Consolidated Statements of Operations

(unaudited, amounts in thousands, except per share data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
REVENUES:
Rental revenues	$	65,952		$	60,017		$	191,549		$	176,165
Institutional capital management and other fees		1,004			1,046			3,153			3,051

Total revenues		66,956			61,063			194,702			179,216

OPERATING EXPENSES:
Rental expenses		8,761			8,720			26,342			25,314
Real estate taxes		9,752			9,725			28,260			28,074
Real estate related depreciation and amortization		33,398			28,526			96,839			85,755
General and administrative		6,346			6,134			20,465			18,528
Impairment losses		—			—			—			4,556
Casualty gains		(54	)		—			(1,298	)		—

Total operating expenses		58,203			53,105			170,608			162,227

Operating income		8,753			7,958			24,094			16,989
OTHER INCOME AND EXPENSE:
Equity in loss of unconsolidated joint ventures, net		(967	)		(1,293	)		(3,450	)		(2,200	)
Impairment losses on investments in unconsolidated joint ventures		—			—			(1,934	)		—
Loss on business combinations		—			—			—			(395	)
Interest expense		(16,628	)		(15,493	)		(46,907	)		(41,481	)
Interest and other income (expense)		(356	)		227			(257	)		112
Income tax benefit (expense) and other taxes		56			(235	)		(105	)		(1,056	)

Loss from continuing operations		(9,142	)		(8,836	)		(28,559	)		(28,031	)
Discontinued operations:
Operating income (loss) and other expenses		51			(375	)		87			(1,364	)
Loss on dispositions of real estate interests from discontinued operations		—			(608	)		—			(778	)

Income (loss) from discontinued operations		51			(983	)		87			(2,142	)

Loss before gain (loss) on dispositions of real estate interests		(9,091	)		(9,819	)		(28,472	)		(30,173	)
Gain (loss) on dispositions of real estate interests		—			(3	)		—			13

Consolidated net loss of DCT Industrial Trust Inc.		(9,091	)		(9,822	)		(28,472	)		(30,160	)
Net loss attributable to noncontrolling interests		1,015			1,142			3,385			3,526

Net loss attributable to common stockholders	$	(8,076	)	$	(8,680	)	$	(25,087	)	$	(26,634	)

EARNINGS PER COMMON SHARE – BASIC AND DILUTED:
Loss from continuing operations	$	(0.03	)	$	(0.04	)	$	(0.11	)	$	(0.12	)
Income (loss) from discontinued operations		0.00			0.00			0.00			(0.01	)

Net loss attributable to common stockholders	$	(0.03	)	$	(0.04	)	$	(0.11	)	$	(0.13	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted		245,805			211,634			241,548			210,285

Third Quarter 2011

Page 3

Supplemental Reporting Package

Consolidated Balance Sheets

(unaudited, amounts in thousands)


	September 30, 2011			December 31, 2010
ASSETS:
Operating properties	$	3,161,373		$	2,954,754
Properties under development		4,925			55,698
Properties under redevelopment		4,021			3,316
Pre-development and land held for development		40,356			23,668

Total investment in properties		3,210,675			3,037,436
Less accumulated depreciation and amortization		(591,135	)		(528,705	)

Net investment in properties		2,619,540			2,508,731
Investments in and advances to unconsolidated joint ventures		136,555			138,455

Net investment in real estate		2,756,095			2,647,186
Cash and cash equivalents		15,294			17,330
Notes receivable		1,096			1,222
Deferred loan costs, net		8,937			5,883
Straight-line rent and other receivables, net		42,176			33,278
Other assets, net		22,855			14,990

Total assets	$	2,846,453		$	2,719,889

LIABILITIES AND EQUITY:
Accounts payable and accrued expenses	$	48,138		$	38,354
Distributions payable		19,016			17,458
Tenant prepaids and security deposits		23,150			20,759
Other liabilities		29,137			12,373
Intangible lease liability, net		19,124			18,748
Line of credit		51,500			51,000
Senior unsecured notes		935,000			735,000
Mortgage notes		302,138			425,359

Total liabilities		1,427,203			1,319,051
Total stockholders’ equity		1,225,751			1,196,102
Noncontrolling interests		193,499			204,736

Total liabilities and equity	$	2,846,453		$	2,719,889

Third Quarter 2011

Page 4

Supplemental Reporting Package

Funds From Operations

(unaudited, amounts in thousands, except per share and unit data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Reconciliation of net loss attributable to common stockholders to FFO:
Net loss attributable to common stockholders	$	(8,076	)	$	(8,680	)	$	(25,087	)	$	(26,634	)
Adjustments:
Real estate related depreciation and amortization		33,398			28,742			96,839			86,518
Equity in loss of unconsolidated joint ventures, net		967			1,293			3,450			2,200
Equity in FFO of unconsolidated joint ventures		1,083			403			2,119			3,080
Loss on business combinations		—			—			—			395
Gain on dispositions of real estate interests		—			(2,058	)		—			(2,092	)
Gain on dispositions of non-depreciated real estate		—			6			—			12
Noncontrolling interest in the operating partnership’s share of the above adjustments		(3,655	)		(3,108	)		(10,852	)		(10,143	)
FFO attributable to unitholders		2,413			2,030			6,936			6,737

FFO attributable to common stockholders and unitholders, basic and diluted		26,130			18,628			73,405			60,073

Adjustments:
Acquisition costs⁽¹⁾		346			315			1,409			523
Debt modification costs		—			—			—			1,136
Impairment losses		—			2,669			1,934			7,412

FFO, as adjusted, attributable to common stockholders and unitholders, basic and diluted	$	26,476		$	21,612		$	76,748		$	69,144

FFO per common share and unit, basic and diluted	$	0.10		$	0.08		$	0.27		$	0.25

FFO, as adjusted, per common share and unit, basic and diluted	$	0.10		$	0.09		$	0.29		$	0.29

FFO weighted average common shares and units outstanding:
Common shares for earnings per share – basic		245,805			211,634			241,548			210,285
Participating securities		1,555			1,801			1,623			1,678
Units		25,011			25,985			25,260			26,563

FFO weighted average common shares, participating securities and units outstanding - basic		272,371			239,420			268,431			238,526
Dilutive common stock equivalents		429			296			468			424

FFO weighted average common shares, participating securities and units outstanding - diluted		272,800			239,716			268,899			238,950

(1)	Excluding amounts attributable to noncontrolling interests.

Third Quarter 2011

Page 5

Supplemental Reporting Package

Selected Financial Data

(unaudited, amounts in thousands)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
NET OPERATING INCOME:⁽¹⁾
Rental revenues	$	65,952		$	60,017		$	191,549		$	176,165
Rental expenses and real estate taxes		(18,513	)		(18,445	)		(54,602	)		(53,388	)

Net operating income⁽²⁾	$	47,439		$	41,572		$	136,947		$	122,777

TOTAL CONSOLIDATED PROPERTIES:⁽³⁾
Square feet as of period end		60,369			56,984			60,369			56,984
Average occupancy		89.3	%		83.4	%		88.1	%		81.9	%
Occupancy as of period end		89.9	%		84.3	%		89.9	%		84.3	%
CONSOLIDATED OPERATING PROPERTIES:⁽³⁾
Square feet as of the period end		60,213			54,685			60,213			54,685
Average occupancy		89.5	%		87.0	%		88.4	%		86.6	%
Occupancy as of period end		89.9	%		86.9	%		89.9	%		86.9	%
SAME STORE OPERATING PROPERTIES:⁽¹⁾
Square feet in same store population		52,798			52,798			52,379			52,379
Average occupancy		89.8	%		86.7	%		88.7	%		86.5	%
Occupancy as of period end		90.2	%		86.5	%		90.1	%		86.5	%
Rental revenues	$	57,980		$	58,523		$	169,499		$	171,488
Rental expenses and real estate taxes		(16,418	)		(17,376	)		(48,466	)		(50,221	)

Same store net operating income		41,562			41,147			121,033			121,267
Less: revenue from lease terminations		(262	)		(273	)		(450	)		(330	)

Net operating income (excluding revenue from lease terminations)		41,300			40,874			120,583			120,937

Less: straight-line rents, net of related bad debt expense		(875	)		(344	)		(4,097	)		(3,210	)
Add back: amortization of above/(below) market rents		(190	)		(90	)		(371	)		105

Cash net operating income (excluding revenue from lease terminations)	$	40,235		$	40,440		$	116,115		$	117,832

Net operating income growth (excluding revenue from lease terminations)		1.0	%		—			(0.3	)%		—
Cash net operating income growth (excluding revenue from lease terminations)		(0.5	)%		—			(1.5	)%		—
SUPPLEMENTAL CONSOLIDATED CASH FLOW AND OTHER INFORMATION:
Straight-line rents - increase to revenue, net of related bad debt expense⁽³⁾	$	1,820		$	941		$	6,951		$	3,838
Straight-line rent receivable (balance sheet)⁽³⁾	$	34,141		$	25,191		$	34,141		$	25,191
Net amortization of above/(below) market rents - increase (decrease) to revenue⁽³⁾	$	211		$	90		$	375		$	(239	)
Capitalized interest	$	461		$	401		$	2,133		$	1,803
Stock-based compensation amortization	$	1,092		$	1,234		$	3,757		$	3,582
Revenue from lease terminations⁽³⁾	$	269		$	253		$	457		$	570
Bad debt expense, excluding bad debt expense related to straight-line rents⁽³⁾	$	93		$	231		$	691		$	954
CONSOLIDATED CAPITAL EXPENDITURES:⁽³⁾
Development and acquisition capital (including repositioning)	$	4,093		$	5,216		$	10,466		$	15,260
Building and land improvements		3,410			4,283			6,027			8,824
Tenant improvements and leasing costs (including make-ready)		9,546			5,785			24,438			12,407

Total capital expenditures	$	17,049		$	15,284		$	40,931		$	36,491

⁽¹⁾	Excludes discontinued operations.

⁽²⁾	See Definitions for reconciliation of net operating income to loss from continuing operations.

⁽³⁾	Includes discontinued operations.

Third Quarter 2011

Page 6

Supplemental Reporting Package

Property Overview

As of September 30, 2011


Markets	Number of Buildings		Percent Owned⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage			Annualized Base Rent⁽²⁾			Percentage of Total Annualized Base Rent
						(in thousands)								(in thousands)
CONSOLIDATED OPERATING
Atlanta		52		100.0	%		6,592		10.9	%		92.4	%	$	19,328			9.6	%
Baltimore/Washington D.C		17		100.0	%		2,057		3.4	%		88.4	%		9,246			4.6	%
Central Pennsylvania		8		100.0	%		1,453		2.4	%		74.0	%		4,282			2.1	%
Charlotte		10		100.0	%		1,006		1.7	%		82.2	%		2,734			1.3	%
Chicago		18		100.0	%		3,462		5.8	%		93.0	%		8,781			4.4	%
Cincinnati		32		100.0	%		4,491		7.5	%		83.4	%		12,582			6.3	%
Columbus		14		100.0	%		4,301		7.1	%		85.1	%		8,990			4.5	%
Dallas		46		100.0	%		4,288		7.1	%		86.6	%		14,028			7.0	%
Denver		2		100.0	%		278		0.5	%		100.0	%		1,243			0.6	%
Houston		48		100.0	%		3,346		5.5	%		96.5	%		17,020			8.5	%
Indianapolis		7		100.0	%		2,299		3.8	%		98.7	%		6,809			3.4	%
Kansas City		1		100.0	%		225		0.4	%		100.0	%		842			0.4	%
Louisville		4		100.0	%		1,330		2.2	%		96.2	%		4,073			2.0	%
Memphis		11		100.0	%		5,218		8.7	%		100.0	%		15,351			7.6	%
Mexico		15		100.0	%		1,653		2.7	%		93.3	%		6,287			3.1	%
Miami		6		100.0	%		762		1.3	%		77.4	%		4,871			2.4	%
Minneapolis		3		100.0	%		356		0.6	%		96.4	%		1,724			0.9	%
Nashville		5		100.0	%		2,826		4.7	%		85.0	%		5,910			2.9	%
New Jersey		12		100.0	%		1,669		2.8	%		79.9	%		7,154			3.6	%
Northern California		24		100.0	%		2,528		4.2	%		87.6	%		11,840			5.9	%
Orlando		20		100.0	%		1,864		3.1	%		76.7	%		5,449			2.7	%
Phoenix		14		100.0	%		1,718		2.8	%		83.0	%		4,576			2.3	%
San Antonio		15		100.0	%		1,349		2.2	%		96.7	%		3,917			1.9	%
Seattle		8		100.0	%		1,300		2.2	%		85.7	%		4,940			2.5	%
Southern California		28		89.0	%		3,842		6.4	%		99.2	%		19,069			9.5	%

Total/weighted average - operating properties		420		99.3	%		60,213		100.0	%		89.9	%		201,046			100.0	%

CONSOLIDATED REDEVELOPMENT
Chicago		1		100.0	%		156		100.0	%		56.9	%		189			N/A

Total/weighted average – redevelopment properties		1		100.0	%		156		100.0	%		56.9	%		189			N/A

Total/weighted average - consolidated properties		421		99.3	%		60,369		100.0	%		89.9	%	$	201,235	⁽³⁾		N/A

Continued on next page

See footnote definitions on next page.

Third Quarter 2011

Page 7

Supplemental Reporting Package

Property Overview

(continued)

As of September 30, 2011


Markets	Number of Buildings		Percent Owned ⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage			Annualized Base Rent⁽²⁾		Percentage of Total Annualized Base Rent
						(in thousands)								(in thousands)
UNCONSOLIDATED OPERATING PROPERTIES
IDI (Chicago, Nashville, Savannah)		3		50.0	%		1,423		41.8	%		44.9	%		—		N/A
Southern California Logistics Airport⁽⁴⁾		6		50.0	%		1,983		58.2	%		43.6	%		3,485		N/A

Total/weighted average		9		50.0	%		3,406		100.0	%		44.1	%		3,485		N/A

OPERATING PROPERTIES IN FUNDS
Atlanta		2		17.2	%		703		5.1	%		80.4	%		1,391		3.0	%
Central Pennsylvania		4		8.6	%		1,210		8.6	%		96.7	%		4,717		10.1	%
Charlotte		1		4.4	%		472		3.3	%		100.0	%		1,510		3.2	%
Chicago		4		18.1	%		1,525		10.8	%		100.0	%		5,983		12.8	%
Cincinnati		5		11.9	%		1,847		13.1	%		96.4	%		5,869		12.6	%
Columbus		2		6.3	%		451		3.2	%		100.0	%		1,190		2.5	%
Dallas		4		16.8	%		1,726		12.2	%		86.0	%		3,969		8.5	%
Denver		5		20.0	%		773		5.5	%		92.3	%		3,282		7.0	%
Indianapolis		1		11.4	%		475		3.4	%		100.0	%		1,785		3.8	%
Kansas City		1		11.4	%		180		1.3	%		100.0	%		711		1.5	%
Louisville		5		10.0	%		900		6.4	%		82.6	%		2,502		5.3	%
Memphis		1		20.0	%		1,039		7.4	%		74.1	%		2,331		5.0	%
Minneapolis		3		4.4	%		472		3.3	%		100.0	%		2,339		5.0	%
Nashville		2		20.0	%		1,020		7.2	%		100.0	%		3,807		8.1	%
New Jersey		2		10.7	%		216		1.5	%		83.0	%		968		2.1	%
Northern California		1		4.4	%		396		2.8	%		100.0	%		1,758		3.8	%
Orlando		2		20.0	%		696		4.9	%		82.7	%		2,688		5.7	%

Total/weighted average – fund operating properties		45		14.1	%		14,101		100.0	%		92.0	%		46,800		100.0	%

Total/weighted average – unconsolidated properties		54		21.1	%		17,507		100.0	%		82.7	%	$	50,285		N/A

OPERATING PROPERTIES ASSET-MANAGED ONLY
Atlanta		1		N/A			491		100.0	%		100.0	%		N/A		N/A

SUMMARY
Total/weighted average - consolidated/ unconsolidated operating properties		474		N/A			77,720		99.2	%		88.3	%	$	251,331		N/A
Total/weighted average - consolidated redevelopment properties		1		N/A			156		0.2	%		56.9	%		189		N/A
Total/weighted average – asset managed only properties		1		N/A			491		0.6	%		100.0	%		N/A		N/A

Total/weighted average - all properties		476		N/A			78,367		100.0	%		88.3	%	$	251,520		N/A

⁽¹⁾	Percent owned is based on equity ownership weighted by square feet.

⁽²⁾	Excludes future contractual rent increases and decreases.

⁽³⁾	Excludes total annualized base rent associated with tenants in free rent periods of $6.5 million based on the first month’s cash base rent.

⁽⁴⁾	Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50.

Third Quarter 2011

Page 8

Supplemental Reporting Package

Consolidated Leasing Summary

Leasing Statistics⁽¹⁾


	Number of Leases Signed			Square Feet Signed		Cash Basis Rent Growth			GAAP Basis Rent Growth			Weighted Average Lease Term⁽²⁾		Turnover Costs		Turnover Costs Per Square Foot
				(in thousands)								(in months)		(in thousands)
FOUR QUARTERS ROLLING
New		156			5,309		-18.0	%		-12.1	%		65	$	15,290	$	2.88
Renewal		195			9,781		-8.7	%		-3.3	%		40		9,781		1.00
Development and redevelopment		7			600		N/A			N/A			49		N/A		N/A

Total/Weighted Average		358			15,690		-9.9	%		-4.4	%		49	$	25,071	$	1.66

Weighted Average Retention		77.4	%

THIRD QUARTER 2011
New		46			1,336		-24.1	%		-17.6	%		73	$	3,981	$	2.98
Renewal		47			2,709		-5.1	%		3.8	%		43		2,059		0.76
Development and redevelopment		1			34		N/A			N/A			39		N/A		N/A

Total/Weighted Average		94			4,079		-6.8	%		1.9	%		53	$	6,040	$	1.49

Weighted Average Retention		79.1	%

YEAR TO DATE 2011
New		116			3,783		-15.7	%		-9.3	%		69	$	10,328	$	2.73
Renewal		139			7,007		-7.3	%		-1.7	%		40		7,708		1.10
Development and redevelopment		3			261		N/A			N/A			55		N/A		N/A

Total/Weighted Average		258			11,051		-8.3	%		-2.7	%		50	$	18,036	$	1.67

Weighted Average Retention		73.6	%

Lease Expirations for Consolidated Properties as of September 30, 2011⁽²⁾


Year	Square Feet Related to Expiring Leases		Annualized Base Rent of Expiring Leases⁽³⁾		Percentage of Total Annualized Base Rent
	(in thousands)		(in thousands)
2011⁽⁴⁾		2,372	$	8,842		4.0	%
2012		10,177		40,745		18.3	%
2013		10,294		42,980		19.4	%
2014		8,009		31,963		14.4	%
2015		7,279		28,543		12.9	%
Thereafter		16,117		68,734		31.0	%

Total occupied		54,248	$	221,807		100.0	%

Available or leased not occupied		6,121

Total consolidated properties		60,369

(1)	Does not include month-to-month leases.

(2)	Assumes no exercise of lease renewal options, if any.

(3)	Includes contractual rent changes.

(4)	Includes month-to-month leases.

Third Quarter 2011

Page 9

Supplemental Reporting Package

Acquisition and Disposition Summary

For the Nine Months Ended September 30, 2011


	Property Name	Size		Occupancy at Acquisition/ Disposition			Occupancy at September 30, 2011			Market
ACQUISITIONS:
January	Palmyrita (2 buildings)⁽¹⁾		191,000 sq. ft.		88.5	%		88.5	%	Southern California
January	6^th & Rochester⁽¹⁾		173,000 sq. ft.		100.0	%		100.0	%	Southern California
January	101 Railroad Avenue		330,000 sq. ft.		100.0	%		100.0	%	New Jersey
January	13780 Central Avenue⁽²⁾		190,000 sq. ft.		—			100.0	%	Southern California
February	8551 NW 30^th Terrace		100,000 sq. ft.		100.0	%		—		Miami
March	3001 Directors Row		50,000 sq. ft.		100.0	%		100.0	%	Orlando
April	450 S Lombard Road⁽²⁾		156,000 sq. ft.		35.0	%		56.9	%	Chicago
April	8190 Byron Rd.		72,000 sq. ft.		100.0	%		100.0	%	Southern California
June	4625 N 45^th Ave.		245,000 sq. ft.		100.0	%		100.0	%	Phoenix
July	1700 DeSoto Place		82,000 sq. ft.		100.0	%		100.0	%	Southern California
July	2440 Pleasantdale		77,000 sq. ft.		100.0	%		100.0	%	Atlanta
July	Pan American Land (Phase 1)		7.3 acres		N/A			N/A		Miami
July	Slover Land		28.3 acres		N/A			N/A		Southern California
August	5330 Pecos Street		118,000 sq. ft.		100.0	%		100.0	%	Denver
August	Beltway Portfolio (7 buildings)		383,000 sq. ft.		95.2	%		95.2	%	Houston
August	DCT Port Union Land (Phase 2)		46.3 acres		N/A			N/A		Cincinnati
September	Orlando Portfolio (3 buildings)		421,000 sq. ft.		60.5	%		60.5	%	Orlando
Total YTD Purchase Price - $163.3 million⁽³⁾

DISPOSITIONS:

None.

(1)	DCT consolidates these properties with a 52.6% weighted average ownership.

(2)	Acquisition of redevelopment property.

(3)	Amounts are based on gross purchase price and include $9.8 million of noncontrolling interest.

Third Quarter 2011

Page 10

Supplemental Reporting Package

Development Overview

As of September 30, 2011


Project	Market	Acres		Number of Buildings		Square Feet		Costs Incurred (In thousands)				Total Projected Investment		Percentage Leased
								Q3 2011		Cumulative
UNDER CONSTRUCTION:
Dulles Summit Distribution Phase 2⁽¹⁾	Baltimore/Washington D.C.		13.3		2		177.9	$	199.0	$	4,925	$	17,376		—

PREDEVELOPMENT:
8^th & Vineyard ⁽¹⁾	Southern California		19.3					$	153	$	5,316
Slover	Southern California		28.3						14,083		14,083
Pan American Land Phase 1	Miami		7.3						3,396		3,396
DCT Port Union Phase 2	Cincinnati		46.3						3,347		6,865

TOTAL			101.2					$	20,979	$	29,660

LAND HELD:⁽²⁾⁽³⁾
DCT Reno	Reno		42.2					$	—	$	4,962
DCT Whitestown	Indianapolis		28.4						—		874
Dulles Land JV⁽¹⁾	Baltimore/Washington D.C.		5.1						—		2,355
ADC North Phase 2	Orlando		14.6						—		2,442

TOTAL			90.3					$	—	$	10,633

(1)	Amounts include a 5% noncontrolling interest in Dulles Summit Distribution Phase 2; a 9% noncontrolling interest in 8^th & Vineyard; and a 50% noncontrolling interest ownership in Dulles Land JV.

(2)	Excludes 47 acres of land in Atlanta held by our IDI/DCT Buford unconsolidated joint ventures.

(3)	This excludes our investment in our unconsolidated joint venture, Stirling Capital Investments (SCLA). This land is entitled for industrial development surrounding the Southern California Logistics Airport located in the Inland Empire submarket of Southern California:


	Acquired		Available for Development		In Service		Sold
SCLA Phase I (Acres)		360		209		98		53

The SCLA joint venture has master development agreements giving it certain development rights to approximately 4,000 acres surrounding the former George Air Force Base.

Third Quarter 2011

Page 11

Supplemental Reporting Package

Indebtedness

(dollar amounts in thousands)

As of September 30, 2011


Description	Stated Interest Rate			Effective Interest Rate			Maturity Date	Balance as of 9/30/2011
SENIOR UNSECURED NOTES:
2013 Notes, fixed rate		6.11	%		6.36	%	June 2013	$	175,000
2014 Notes, fixed rate		5.68	%		6.03	%	January 2014		50,000
2015 Notes, fixed rate		5.63	%		5.63	%	June 2015		40,000
2015 Notes, variable rate⁽¹⁾		2.34	%		2.34	%	June 2015		175,000
2016 Notes, fixed rate		4.90	%		4.89	%	April & August 2016		99,000
2017 Notes, fixed rate		6.31	%		6.31	%	June 2017		51,000
2018 Notes, fixed rate		5.62	%		5.62	%	June & August 2018		81,500
2019 Notes, fixed rate		4.97	%		4.97	%	August 2019		46,000
2020 Notes, fixed rate		5.43	%		5.43	%	April 2020		50,000
2021 Notes, fixed rate		6.70	%		6.70	%	June & August 2021		92,500
2022 Notes, fixed rate		5.50	%		5.50	%	August 2022		40,000
2023 Notes, fixed rate		5.57	%		5.57	%	August 2023		35,000

									935,000

MORTGAGE NOTES:
Fixed rate secured debt		6.03	%		5.79	%	Dec. 2011–Aug. 2025		299,283
Premiums (discounts), net of amortization									2,855

									302,138

UNSECURED CREDIT FACILITY:
Senior unsecured revolving credit facility⁽²⁾		2.12	%		2.12	%	June 2015		51,500

Total carrying value of consolidated debt								$	1,288,638

Fixed rate debt		5.84	%		5.82	%			82	%
Variable rate debt		2.29	%		2.29	%			18	%

Weighted average interest rate		5.21	%		5.20	%			100	%

DCT PROPORTIONATE SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT⁽³⁾
Institutional Funds								$	32,202
SCLA									30,532

								$	62,734

Scheduled Principal Payments of Debt as of September 30, 2011 (excluding premiums)


Year	Senior Unsecured Notes		Mortgage Notes		Unsecured Credit Facility		Total
2011	$	—	$	3,441	$	—	$	3,441
2012		—		57,850		—		57,850
2013		175,000		43,816		—		218,816
2014		50,000		9,475		—		59,475
2015		215,000		47,822		51,500		314,322
2016		99,000		5,180		—		104,180
2017		51,000		5,522		—		56,522
2018		81,500		5,580		—		87,080
2019		46,000		50,150		—		96,150
2020		50,000		61,981		—		111,981
Thereafter		167,500		8,466		—		175,966

Total	$	935,000	$	299,283	$	51,500	$	1,285,783

(1)	The $175 million term loan agreement bears interest at either 0.80% to 1.65% over prime or 1.80% to 2.65% over LIBOR, per annum at our election, depending on our leverage ratio.

(2)

The $300 million senior unsecured revolving credit facility expires on June 3, 2015 and bears interest at either 0.65% to 1.35% over prime or 1.65% to 2.35% over LIBOR, per annum at our election, depending upon our leverage ratio. There was $248.5 million available under the unsecured revolving credit facility as of September 30, 2011.

(3)	Based on DCT’s ownership as of September 30, 2011.

Hedges: As of September 30, 2010, we had one forward-starting interest rate swap in place to hedge the variability of cash flows associated with forecasted issuances of debt in 2012. This swap has a notional value of $90 million, a LIBOR based strike rate of 5.43%, an effective date of June 2012 and a maturity date of September 2012.

Third Quarter 2011

Page 12

Supplemental Reporting Package

Capitalization and Fixed Charge Coverage

(dollar amounts in thousands, except share price)

Capitalization at September 30, 2011


Description	Shares or Units ⁽¹⁾		Share Price		Market Value
	(in thousands)
Common shares outstanding		245,933	$	4.39	$	1,079,646
Operating partnership units outstanding		24,146	$	4.39		106,001

Total equity market capitalization						1,185,647

Consolidated debt						1,288,638
Less: Noncontrolling interests’ share of consolidated debt⁽²⁾						(6,729	)
Proportionate share of debt related to unconsolidated joint ventures						62,734

DCT share of total debt						1,344,643

Total market capitalization					$	2,530,290

DCT share of total debt to total market capitalization						53.1	%

Fixed Charge Coverage


	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Net loss attributable to common stockholders	$	(8,076	)	$	(8,680	)	$	(25,087	)	$	(26,634	)
Interest expense⁽³⁾		16,628			15,516			46,907			41,552
Proportionate share of interest expense from unconsolidated joint ventures		746			901			2,355			2,258
Real estate related depreciation and amortization⁽³⁾		33,398			28,742			96,839			86,518
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures		1,785			1,454			4,787			4,432
Income tax expense (benefit) and other taxes⁽³⁾		(56	)		248			105			1,068
Stock-based compensation amortization		1,092			1,234			3,757			3,582
Noncontrolling interests⁽³⁾		(1,015	)		(1,142	)		(3,385	)		(3,526	)
Loss on business combinations		—			—			—			395
Non-FFO gains on dispositions of real estate interests		—			(2,052	)		—			(2,079	)
Impairment losses ⁽³⁾⁽⁴⁾		—			2,669			1,934			7,412

Adjusted EBITDA	$	44,502		$	38,890		$	128,212		$	114,978

CALCULATION OF FIXED CHARGES
Interest expense ⁽³⁾	$	16,628		$	15,516		$	46,907		$	41,552
Capitalized interest		461			401			2,133			1,803
Amortization of loan costs and debt premium/discount		(257	)		(421	)		(738	)		(988	)
Proportionate share of interest expense from unconsolidated joint ventures		746			901			2,355			2,258

Total fixed charges	$	17,578		$	16,397		$	50,657		$	44,625

Fixed charge coverage		2.5			2.4			2.5			2.6

(1)	Excludes 1.0 million unvested Long-Term Incentive Plan Units, 0.4 million shares of unvested Restricted Stock and 0.1 million unvested Phantom Shares outstanding as of September 30, 2011.

(2)	Amount includes only the portion of consolidated property level debt related to properties in which we do not have a 100% ownership.

(3)	Includes amounts related to discontinued operations.

(4)	Includes impairment losses on investments in unconsolidated joint ventures.

Third Quarter 2011

Page 13

Supplemental Reporting Package

Institutional Capital Management Summary

(dollar amounts in thousands)

Statements of Operations


	For the Nine Months Ended September 30, 2011
	Boubyan Fund I			TRT-DCT JV I			TRT-DCT JV II			TRT-DCT JV III		JP Morgan
REVENUES:
Total rental revenues	$	7,296		$	12,674		$	6,005		$	2,338	$	15,567

EXPENSES:
Rental expenses		631			984			561			256		1,477
Real estate taxes		1,181			1,979			929			227		2,216
Depreciation and amortization		3,424			6,107			2,576			1,073		10,473
General and administrative		433			60			12			5		576

Total expenses		5,669			9,130			4,078			1,561		14,742
Interest expense		4,081			5,786			2,599			691		—
Taxes		40			10			24			16		1

Net income (loss)	$	(2,494	)	$	(2,252	)	$	(696	)	$	70	$	824

Rental revenues		7,296			12,674			6,005			2,338		15,567
Rental expenses and real estate taxes		1,812			2,963			1,490			483		3,693

Net operating income	$	5,484		$	9,711		$	4,515		$	1,855	$	11,874


Data by Fund as of September 30,	Number of Buildings		Square Feet (In thousands)		Occupancy Percentage			DCT Ownership
Boubyan Fund I		6		2,647		84.6	%		20.0	%
TRT-DCT JV I		14		3,673		96.1	%		4.4	%
TRT-DCT JV II		6		1,925		95.7	%		11.4	%
TRT-DCT JV III		5		900		82.6	%		10.0	%
JP Morgan		14		4,956		93.2	%		20.0	%

Total/weighted average		45		14,101		92.0	%		14.1	%

Balance Sheets


	As of September 30, 2011
	Boubyan Fund I			TRT-DCT JV I			TRT-DCT JV II			TRT-DCT JV III			JP Morgan
Total investment in properties	$	125,467		$	214,935		$	99,418		$	31,195		$	290,233
Accumulated depreciation and amortization		(26,647	)		(41,852	)		(17,904	)		(4,578	)		(49,179	)

Net investment in properties		98,820			173,083			81,514			26,617			241,054
Cash and cash equivalents		1,713			2,438			827			429			4,051
Other assets		3,131			3,169			2,185			542			4,649

Total assets	$	103,664		$	178,690		$	84,526		$	27,588		$	249,754

Other liabilities	$	2,322		$	4,878		$	1,706		$	725		$	4,473
Secured debt maturities – 2014		—			—			39,725	⁽³⁾		—			—
Secured debt maturities – 2015		—			44,844	⁽²⁾		10,256	⁽³⁾		—			—
Secured debt maturities thereafter		95,500	⁽¹⁾		85,000	⁽²⁾		4,780	⁽³⁾		11,944	⁽⁴⁾		—

Total secured debt		95,500			129,844			54,761			11,944			—

Total liabilities		97,822			134,722			56,467			12,670			4,473
Partners or members’ capital		5,842			43,968			28,059			14,919			245,281

Total liabilities and Partners or members’ capital	$	103,664		$	178,690		$	84,526		$	27,588		$	249,754

⁽¹⁾	Debt currently has a stated interest rate of 5.6% and requires interest only payments until 2012 at which time it has a new stated interest rate of 7.6% and becomes fully amortizing through maturity in 2036.

⁽²⁾

$85 million of debt requires interest only payments until 2017 and has a stated interest rate of 5.7%. $12.9 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 5.76%. $31.9 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%.

⁽³⁾

$39.7 million of debt requires interest only payments until 2014 and has a stated interest rate of 6.2%. $10.3 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%. $4.8 million of debt requires principal and interest payments through 2016 and has a stated interest rate of 5.3%.

⁽⁴⁾	$11.9 million of debt requires principal and interest payments until 2016 and has a stated interest rate of 7.4%.

Third Quarter 2011

Page 14

Supplemental Reporting Package

Definitions

Adjusted EBITDA:

Adjusted EBITDA represents net loss attributable to common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, impairment losses, loss on business combinations, noncontrolling interest, and proportionate share of interest, depreciation and amortization from unconsolidated joint ventures, and excludes non-FFO gains. 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.

Annualized Base Rent:

Annualized Base Rent is calculated as monthly contractual base rent (cash basis) per the terms of the lease, as of period end, multiplied by 12.

Capital Expenditures:

Capital expenditures include building improvements, development costs and leasing costs required to maintain current revenues and/or improve real estate assets. Repositioning capital is defined as substantial building improvements on which the Company expects to earn incremental returns but which do not qualify as a Redevelopment.

Cash Basis Rent Growth:

Cash basis rent growth is the ratio of the change in base rent due in the first month after the lease commencement date compared to the base rent of the last month prior to the termination of the lease, excluding new leases where there were no prior comparable leases. Free rent periods are not considered.

Cash Net Operating Income:

We calculate Cash Net Operating Income as Net Operating Income (as defined below) excluding non-cash amounts recorded for straight-line rents including related bad debt expense and the amortization of above and below market rents. See definition of Net Operating Income for additional information. DCT Industrial considers Cash NOI to be an appropriate supplemental performance measure because Cash NOI reflects the operating performance of DCT Industrial’s properties and excludes certain non-cash items that are not considered to be controllable in connection with the management of the property such as accounting adjustments for straight-line rent and the amortization of above and below market rent. Additionally, DCT Industrial presents Cash NOI, excluding revenue from lease terminations, as such revenue is not considered indicative of recurring operating performance.

Effective Interest Rate:

Reflects the impact to interest rates of GAAP adjustments for purchase price allocation and hedging transactions. These rates do not reflect the impact of other interest expense items such as fees and the amortization of loan costs.

Fixed Charges:

Fixed charges include interest expense, interest capitalized, our proportionate share of our unconsolidated joint venture interest expense and adjusted for amortization of discounts, premiums and loan costs.

Fixed Charge Coverage:

We calculate Fixed Charge Coverage as Adjusted EBITDA divided by total Fixed Charges.

Funds from Operations (“FFO”):

DCT Industrial believes that net income, 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 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, acquisition costs, debt modification costs and impairment losses. We believe that FFO excluding severance, acquisition costs and debt modification costs, which are non-routine items, 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 unrelated impairment losses relating to the decrease in value of certain real estate assets and investments in unconsolidated joint ventures. 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 other REITs’ FFO and FFO should be considered only as a supplement to net income as a measure of DCT Industrial’s performance.

GAAP:

United States generally accepted accounting principles.

GAAP Basis Rent Growth:

GAAP basis rent growth is a ratio of the change in monthly Net Effective Rent (on a GAAP basis, including straight-line rent adjustments as required by GAAP) compared to the Net Effective Rent (on a GAAP basis) of the previous term. New leases where there were no prior comparable leases are excluded.

Net Effective Rate:

Average base rental rate over the term of the lease, calculated in accordance with GAAP.

Third Quarter 2011

Page 15

Supplemental Reporting Package

Definitions

(Continued)

Net Operating Income (“NOI”):

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


	Consolidated Operating Data
	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Reconciliation of NOI to loss from continuing operations:
Loss from continuing operations	$	(9,142	)	$	(8,836	)	$	(28,559	)	$	(28,031	)
Income tax (benefit) expense and other taxes		(56	)		235			105			1,056
Interest and other (income) expense		356			(227	)		257			(112	)
Interest expense		16,628			15,493			46,907			41,481
Equity in loss of unconsolidated joint ventures, net		967			1,293			3,450			2,200
General and administrative		6,346			6,134			20,465			18,528
Real estate related depreciation and amortization		33,398			28,526			96,839			85,755
Loss on business combinations		—			—			—			395
Impairment losses		—			—			1,934			4,556
Casualty gains		(54	)		—			(1,298	)		—
Institutional capital management and other fees		(1,004	)		(1,046	)		(3,153	)		(3,051	)

Total net operating income		47,439			41,572			136,947			122,777
Less net operating income- non-same store properties		(5,877	)		(425	)		(15,914	)		(1,510	)

Same store GAAP net operating income		41,562			41,147			121,033			121,267
Less revenue from lease terminations		(262	)		(273	)		(450	)		(330	)

Same store net operating income, excluding revenue from lease terminations		41,300			40,874			120,583			120,937
Less straight-line rents, net of related bad debt expense		(875	)		(344	)		(4,097	)		(3,210	)
Add back amortization of above/(below) market rents		(190	)		(90	)		(371	)		105

Same store cash net operating income, excluding revenue from lease terminations	$	40,235		$	40,440		$	116,115		$	117,832

Ratio of Consolidated Debt to Book Value of Total Assets (Before Depreciation):

Calculated as (total consolidated debt) / (total assets with accumulated depreciation and amortization added back).

Redevelopment:

Represents assets acquired with the intention to reposition or redevelop. May include buildings taken out of service for redevelopment where we generally expect to spend more than 20% of the building's book value on capital improvements, if applicable.

Retention:

Calculated as (retained square feet + relocated square feet) / ((retained square feet + relocated square feet + expired square feet)—(square feet of vacancies anticipated at acquisition + month-to-month square feet + bankruptcy square feet + early terminations)).

Sales Price:

Contractual price of real estate sold before closing adjustments.

Same Store Population:

The same store population is determined independently for each period presented, quarter-to-date and year-to-date, by including all consolidated operating properties that have been owned and stabilized for the entire current and prior periods presented. Held for sale properties are excluded.

Third Quarter 2011

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Supplemental Reporting Package

Definitions

(Continued)

Same Store Change Year over Year:

The change in GAAP same store NOI and cash same store NOI is calculated by dividing the change in NOI, year over year, by the preceding period NOI, based on a same store population for the earliest period presented. A reconciliation of NOI and cash NOI by period is provided below; amounts are not restated for current period discontinued operations (in thousands).


	Consolidated operating data, as previously reported, for the three months ended:
	September 30, 2010			December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011
Reconciliation of NOI to Loss from continuing operations:
Loss from continuing operations	$	(8,836	)	$	(12,146	)	$	(9,803	)	$	(9,614	)		(9,142	)
Income tax expense (benefit) and other taxes		235			(138	)		40			121			(56	)
Interest and other (income) expense		(227	)		(244	)		(85	)		(14	)		356
Interest expense		15,493			15,423			15,511			14,768			16,628
Equity in loss of unconsolidated joint ventures, net		1,293			786			1,357			1,126			967
General and administrative		6,134			6,735			7,056			7,063			6,346
Real estate related depreciation and amortization		28,526			29,368			31,143			32,298			33,398
Loss on business combinations and impairment losses		—			4,316			—			1,934			—
Casualty gains		—			—			—			(1,244	)		(54	)
Institutional capital management and other fees		(1,046	)		(1,082	)		(1,019	)		(1,129	)		(1,004	)

Total GAAP net operating income		41,572			43,018			44,200			45,309			47,439
Less net operating income- non-same store properties		(2,708	)		(3,690	)		(6,234	)		(6,745	)		(8,180	)

Same store net operating income		38,864			39,328			37,966			38,564			39,259
Less revenue from lease terminations		(273	)		(104	)		(55	)		(134	)		(262	)

Same store GAAP net operating income, excluding revenue from lease terminations		38,591			39,224			37,911			38,430			38,997
Less straight-line rents, net of related bad debt expense		(136	)		(739	)		(1,908	)		(1,199	)		(828	)
Add back amortization of above/(below) market rents		106			79			25			20			(68	)

Same store cash net operating income, excluding revenue from lease terminations	$	38,561		$	38,564		$	36,028		$	37,251		$	38,101


	Consolidated operating data, as previously reported, for the three months ended:
	September 30, 2009			December, 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010
Reconciliation of NOI to Loss from continuing operations:
Loss from continuing operations	$	(18,088	)	$	(3,811	)	$	(7,704	)	$	(11,490	)	$	(8,836	)
Income tax expense (benefit) and other taxes		470			(178	)		238			582			235
Interest and other (income) expense		(353	)		(364	)		469			(353	)		(227	)
Interest expense		13,487			12,576			12,763			13,225			15,493
Equity in (income) loss of unconsolidated joint ventures, net		400			(533	)		558			349			1,293
General and administrative		9,081			8,221			6,032			6,362			6,134
Real estate related depreciation and amortization		27,582			28,516			28,281			28,948			28,526
Loss on business combinations		10,156			169			395			4,556			—
Institutional capital management and other fees		(701	)		(653	)		(967	)		(1,038	)		(1,046	)

Total GAAP net operating income		42,034			43,943			40,065			41,141			41,572
Less net operating income- non-same store properties		(1,037	)		(2,127	)		(1,827	)		(2,060	)		(2,708	)

Same store net operating income		40,997			41,816			38,238			39,081			38,864
Less revenue from lease terminations		(408	)		(167	)		(34	)		(23	)		(273	)

Same store GAAP net operating income, excluding revenue from lease terminations		40,589			41,649			38,204			39,058			38,591
Less straight-line rents, net of related bad debt expense		(303	)		12			(980	)		(1,118	)		(136	)
Add back amortization of above/(below) market rents		226			173			202			175			106

Same store cash net operating income, excluding revenue from lease terminations	$	40,512		$	41,834		$	37,426		$	38,115		$	38,561

Change in (GAAP) same store NOI		(4.9	)%		(5.8	)%		(0.8	)%		(1.6	)%		1.0	%

Change in cash same store NOI		(4.8	)%		(7.8	)%		(3.7	)%		(2.3	)%		(1.2	)%

Square Feet:

Represents square feet in building that are available for lease.

Stabilized:

Buildings are generally considered stabilized when 95% occupied.

Stock-based Compensation Amortization Expense:

Represents the non-cash amortization of the cost of employee services received in exchange for an award of an equity instrument based on the award’s fair value on the grant date and amortized over the vesting period.

Turnover Costs:

Turnover costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid or costs capitalized for leasing transactions. The amount indicated for leasing statistics represents the total turnover costs expected to be incurred on the leases signed during the period and does not reflect actual expenditures for the period.

Third Quarter 2011

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Supplemental Reporting Package

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