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EX-99.1 - PRESS RELEASE - DUKE REALTY LIMITED PARTNERSHIP/d268378dex991.htm

Exhibit 99.2

Duke Realty Limited Partnership

Pro Forma Consolidated Balance Sheet

September 30, 2011

(unaudited, in thousands, except par value amounts)

 

     Historical (A)     Blackstone
Transaction (B)
    Use of
Proceeds (C)
    Pro
Forma
 

ASSETS

        

Real estate investments:

        

Land and improvements

   $ 1,307,608      $ (159,514 (B1)      $ 1,148,094   

Buildings and tenant improvements

     5,601,866        (1,069,756 (B1)        4,532,110   

Construction in progress

     41,490        (1,613 (B1)        39,877   

Investments in and advances to unconsolidated companies

     368,671            368,671   

Undeveloped land

     622,254            622,254   
  

 

 

   

 

 

   

 

 

   

 

 

 
     7,941,889        (1,230,883     —          6,711,006   

Accumulated depreciation

     (1,413,804     330,257   (B1)        (1,083,547
  

 

 

   

 

 

   

 

 

   

 

 

 

Net real estate investments

     6,528,085        (900,626     —          5,627,459   

Real estate investments and other assets held-for-sale

     21,992            21,992   

Cash and cash equivalents

     16,157        1,022,328   (B2)      (284,000 (C1)      754,485   

Accounts receivable, net of allowance of $2,854 and $2,945

     21,685        (2,065 (B1)        19,620   

Straight-line rent receivable, net of allowance of $7,502 and $7,260

     140,732        (35,350 (B1)        105,382   

Receivables on construction contracts, including retentions

     44,425        (5 (B1)        44,420   

Deferred financing costs, net of accumulated amortization of $56,105 and $46,407

     39,449            39,449   

Deferred leasing and other costs, net of accumulated amortization of $329,325 and $269,000

     497,594        (58,736 (B1)        438,858   

Escrow deposits and other assets

     194,107        (4,613 (B1)        189,494   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 7,504,226      $ 20,933      $ (284,000   $ 7,241,159   
  

 

 

   

 

 

   

 

 

   

 

 

 

LIABILITIES AND EQUITY

        

Indebtedness:

        

Secured debt

   $ 1,184,268      $ (26,592 (B3)      $ 1,157,676   

Unsecured notes

     2,783,762            2,783,762   

Unsecured lines of credit

     304,293          (284,000 (C1)      20,293   
  

 

 

   

 

 

   

 

 

   

 

 

 
     4,272,323        (26,592     (284,000     3,961,731   

Liabilities related to real estate investments held-for-sale

     957            957   

Construction payables and amounts due subcontractors, including retentions

     66,786        (357 (B1)        66,429   

Accrued real estate taxes

     123,524        (25,555 (B1)        97,969   

Accrued interest

     35,725        (164 (B1)        35,561   

Other accrued expenses

     42,414        (1,749 (B1)        40,665   

Other liabilities

     128,123        (2,802 (B1)        125,321   

Tenant security deposits and prepaid rents

     59,551        (12,282 (B1)        47,269   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total liabilities

     4,729,403        (69,501     (284,000     4,375,902   
  

 

 

   

 

 

   

 

 

   

 

 

 

Partners’ equity:

        

General Partner

        

Common equity (252,918 and 252,195 General Partner Units issued and outstanding)

     1,919,479        87,992  (B4)        2,007,471   

Preferred equity (3,176 and 3,618 Preferred Units issued and outstanding)

     793,910            793,910   
  

 

 

       

 

 

 
     2,713,389            2,801,381   

Limited Partners’ common equity (6,950 and 5,231 Limited Partner Units issued and outstanding)

     56,286        2,442  (B4)        58,728   

Accumulated other comprehensive income

     493            493   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total partners’ equity

     2,770,168        90,434        —          2,860,602   

Noncontrolling interests

     4,655            4,655   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total equity

     2,774,823        90,434        —          2,865,257   
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ 7,504,226      $ 20,933      $ (284,000   $ 7,241,159   
  

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


DUKE REALTY LIMITED PARTNERSHIP

Pro Forma Consolidated Statements of Operations

For the Nine Months Ended September 30, 2011

(unaudited, in thousands, except per unit amounts)

 

     Historical (a)     Blackstone
Transaction (b)
    Pro
Forma
 

Revenues:

      

Rental and related revenue

   $ 698,619      $  (130,309 (b1)    $ 568,310   

General contractor and service fee revenue

     409,617        —          409,617   
  

 

 

   

 

 

   

 

 

 
     1,108,236        (130,309     977,927   

Expenses:

      

Rental expenses

     153,002        (41,790 (b1)      111,212   

Real estate taxes

     101,936        (20,565 (b1)      81,371   

General contractor and other services expenses

     379,180        —          379,180   

Depreciation and amortization

     290,751        (43,916 (b1)      246,835   
  

 

 

   

 

 

   

 

 

 
     924,869        (106,271     818,598   
  

 

 

   

 

 

   

 

 

 

Other operating activities:

      

Equity in earnings of unconsolidated companies

     5,890        —          5,890   

Gain on sale of properties

     66,910        —          66,910   

Undeveloped land carrying costs

     (7,021     —          (7,021

Other operating expenses

     (171     —          (171

General and administrative expense

     (29,231     122   (b1)      (29,109
  

 

 

   

 

 

   

 

 

 
     36,377        122        36,499   
  

 

 

   

 

 

   

 

 

 

Operating income

     219,744        (23,916     195,828   

Other income (expenses):

      

Interest and other income, net

     543        —       (c)      543   

Interest expense

     (199,269     3,003   (b2)      (196,266

Acquisition-related activity

     (1,525     —          (1,525
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     19,493        (20,913     (1,420

Income tax benefit

     194        —          194   
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     19,687        (20,913     (1,226

Distributions on Preferred Units

     (46,347     —          (46,347

Adjustments for redemption/repurchase of Preferred Units

     (3,796     —          (3,796

Net loss attributable to noncontrolling interests

     163        —          163   
  

 

 

   

 

 

   

 

 

 

Net loss attributable to common unitholders - continuing operations

   $ (30,293   $ (20,913   $ (51,206
  

 

 

   

 

 

   

 

 

 

Basic net loss per Common Unit - continuing operations

   $ (0.13     $  (0.21 (d) 
  

 

 

     

 

 

 

Diluted net loss per Common Unit - continuing operations

   $ (0.13     $ (0.21 (d) 
  

 

 

     

 

 

 

Weighted average number of Common Units outstanding

     259,505          259,505   
  

 

 

     

 

 

 

Weighted average number of Common Units and potential dilutive securities

     259,505          259,505   
  

 

 

     

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


DUKE REALTY LIMITED PARTNERSHIP

Pro Forma Consolidated Statements of Operations

For the Nine Months Ended September 30, 2010

(unaudited, in thousands, except per unit amounts)

 

     Historical (a)     Blackstone
Transaction (b)
    Pro
Forma
 

Revenues:

      

Rental and related revenue

   $ 642,489      $ (134,509 (b1)    $ 507,980   

General contractor and service fee revenue

     414,391        —          414,391   
  

 

 

   

 

 

   

 

 

 
     1,056,880        (134,509     922,371   

Expenses:

      

Rental expenses

     143,133        (41,791 (b1)      101,342   

Real estate taxes

     88,394        (20,350 (b1)      68,044   

General contractor and other services expenses

     392,433        —          392,433   

Depreciation and amortization

     253,209        (53,831 (b1)      199,378   
  

 

 

   

 

 

   

 

 

 
     877,169        (115,972     761,197   
  

 

 

   

 

 

   

 

 

 

Other operating activities:

      

Equity in earnings of unconsolidated companies

     7,525        —          7,525   

Gain on sale of properties

     6,917        —          6,917   

Undeveloped land carrying costs

     (7,152     —          (7,152

Impairment charges

     (9,834     —          (9,834

Other operating expenses

     (1,002     —          (1,002

General and administrative expense

     (31,171     177   (b1)      (30,994
  

 

 

   

 

 

   

 

 

 
     (34,717     177        (34,540
  

 

 

   

 

 

   

 

 

 

Operating income

     144,994        (18,360     126,634   

Other income (expenses):

      

Interest and other income, net

     504        —       (c)      504   

Interest expense

     (175,076     1,596    (b2)      (173,480

Loss on debt transactions

     (16,294     —          (16,294

Acquisition-related activity

     57,513        —          57,513   
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     11,641        (16,764     (5,123

Income tax benefit

     1,126        —          1,126   
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     12,767        (16,764     (3,997

Distributions on Preferred Units

     (53,452     —          (53,452

Adjustments for repurchase of Preferred Units

     (10,144     —          (10,144

Net income attributable to noncontrolling interests

     (58     —          (58
  

 

 

   

 

 

   

 

 

 

Net loss attributable to common unitholders - continuing operations

   $ (50,887   $ (16,764   $ (67,651
  

 

 

   

 

 

   

 

 

 

Basic net loss per Common Unit - continuing operations

   $ (0.22     $ (0.29 (d) 
  

 

 

     

 

 

 

Diluted net loss per Common Unit - continuing operations

   $ (0.22     $ (0.29 (d) 
  

 

 

     

 

 

 

Weighted average number of Common Units outstanding

     240,640          240,640   
  

 

 

     

 

 

 

Weighted average number of Common Units and potential dilutive securities

     240,640          240,640   
  

 

 

     

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


DUKE REALTY LIMITED PARTNERSHIP

Pro Forma Consolidated Statements of Operations

For the Year Ended December 31, 2010

(unaudited, in thousands, except per unit amounts)

 

     Historical (a)     Blackstone
Transaction (b)
    Pro
Forma
 

Revenues:

      

Rental and related revenue

   $ 878,242      $ (178,115 ) (b1)    $ 700,127   

General contractor and service fee revenue

     515,361        —          515,361   
  

 

 

   

 

 

   

 

 

 
     1,393,603        (178,115     1,215,488   

Expenses:

      

Rental expenses

     197,985        (55,516 (b1)      142,469   

Real estate taxes

     118,006        (25,960 (b1)      92,046   

General contractor and other services expenses

     486,865        —          486,865   

Depreciation and amortization

     349,064        (68,485 (b1)      280,579   
  

 

 

   

 

 

   

 

 

 
     1,151,920        (149,961     1,001,959   
  

 

 

   

 

 

   

 

 

 

Other operating activities:

      

Equity in earnings of unconsolidated companies

     7,980        —          7,980   

Gain on sale of properties

     39,662        —          39,662   

Undeveloped land carrying costs

     (9,203     —          (9,203

Impairment charges

     (9,834     —          (9,834

Other operating expenses

     (1,231     —          (1,231

General and administrative expense

     (41,329     263  (b1)      (41,066
  

 

 

   

 

 

   

 

 

 
     (13,955     263        (13,692
  

 

 

   

 

 

   

 

 

 

Operating income

     227,728        (27,891     199,837   

Other income (expenses):

      

Interest and other income, net

     534        —      (c)      534   

Interest expense

     (239,383     3,363  (b3)      (236,020

Loss on debt transactions

     (16,349     —          (16,349

Acquisition-related activity

     55,820        —          55,820   
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations before income taxes

     28,350        (24,528     3,822   

Income tax benefit

     1,126        —          1,126   
  

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     29,476        (24,528     4,948   

Distributions on Preferred Units

     (69,468     —          (69,468

Adjustments for repurchase of Preferred Units

     (10,438     —          (10,438

Net loss attributable to noncontrolling interests

     185        —          185   
  

 

 

   

 

 

   

 

 

 

Net loss attributable to common unitholders - continuing operations

   $ (50,245   $ (24,528   $ (74,773
  

 

 

   

 

 

   

 

 

 

Basic net loss per Common Unit - continuing operations

   $ (0.22     $ (0.32 (d) 
  

 

 

     

 

 

 

Diluted net loss per Common Unit - continuing operations

   $ (0.22     $ (0.32 (d) 
  

 

 

     

 

 

 

Weighted average number of Common Units outstanding

     244,870          244,870   
  

 

 

     

 

 

 

Weighted average number of Common Units and potential dilutive securities

     244,870          244,870   
  

 

 

     

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


DUKE REALTY LIMITED PARTNERSHIP

Pro Forma Consolidated Statements of Operations

For the Year Ended December 31, 2009

(unaudited, in thousands, except per unit amounts)

 

     Historical (a)     Blackstone
Transaction (b)
    Pro
Forma
 

Revenues:

      

Rental and related revenue

   $ 842,232      $  (171,426 (b1)    $ 670,806   

General contractor and service fee revenue

     449,509        —          449,509   
  

 

 

   

 

 

   

 

 

 
     1,291,741        (171,426     1,120,315   

Expenses:

      

Rental expenses

     192,270        (52,527 (b1)      139,743   

Real estate taxes

     111,189        (22,425 (b1)      88,764   

General contractor and other services expenses

     427,666        —          427,666   

Depreciation and amortization

     323,429        (63,637 (b1)      259,792   
  

 

 

   

 

 

   

 

 

 
     1,054,554        (138,589     915,965   
  

 

 

   

 

 

   

 

 

 

Other operating activities:

      

Equity in earnings of unconsolidated companies

     9,896        —          9,896   

Gain on sale of properties

     12,337        —          12,337   

Earnings from sales of land

     357        —          357   

Undeveloped land carrying costs

     (10,403     —          (10,403

Impairment charges

     (275,630     —          (275,630

Other operating expenses

     (1,017     —          (1,017

General and administrative expense

     (47,937     292  (b1)      (47,645
  

 

 

   

 

 

   

 

 

 
     (312,397     292        (312,105
  

 

 

   

 

 

   

 

 

 

Operating income

     (75,210     (32,545     (107,755

Other income (expenses):

      

Interest and other income, net

     1,229        —      (c)      1,229   

Interest expense

     (205,952     3,973  (b3)      (201,979

Gain on debt transactions

     20,700        —          20,700   

Acquisition-related activity

     (1,062     —          (1,062
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations before income taxes

     (260,295     (28,572     (288,867

Income tax benefit

     6,070        —          6,070   
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations

     (254,225     (28,572     (282,797

Distributions on Preferred Units

     (73,451     —          (73,451

Net loss attributable to noncontrolling interests

     241        —          241   
  

 

 

   

 

 

   

 

 

 

Net loss attributable to common unitholders - continuing operations

   $ (327,435   $ (28,572   $ (356,007
  

 

 

   

 

 

   

 

 

 

Basic net loss per Common Unit - continuing operations

   $ (1.58     $  (1.72 (d) 
  

 

 

     

 

 

 

Diluted net loss per Common Unit - continuing operations

   $ (1.58     $  (1.72 (d) 
  

 

 

     

 

 

 

Weighted average number of Common Units outstanding

     207,893          207,893   
  

 

 

     

 

 

 

Weighted average number of Common Units and potential dilutive securities

     207,893          207,893   
  

 

 

     

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


DUKE REALTY LIMITED PARTNERSHIP

Pro Forma Consolidated Statements of Operations

For the Year Ended December 31, 2008

(unaudited, in thousands, except per unit amounts)

 

     Historical (a)     Blackstone
Transaction (b)
    Pro
Forma
 

Revenues:

      

Rental and related revenue

   $ 802,791      $  (153,573 (b1)    $ 649,218   

General contractor and service fee revenue

     434,624        —          434,624   
  

 

 

   

 

 

   

 

 

 
     1,237,415        (153,573     1,083,842   

Expenses:

      

Rental expenses

     179,373        (45,857 (b1)      133,516   

Real estate taxes

     95,872        (18,957 (b1)      76,915   

General contractor and other services expenses

     418,743        —          418,743   

Depreciation and amortization

     293,019        (54,237 (b1)      238,782   
  

 

 

   

 

 

   

 

 

 
     987,007        (119,051     867,956   
  

 

 

   

 

 

   

 

 

 

Other operating activities:

      

Equity in earnings of unconsolidated companies

     23,817        —          23,817   

Gain on sale of properties

     39,057        —          39,057   

Earnings from sales of land

     12,651        —          12,651   

Undeveloped land carrying costs

     (8,204     —          (8,204

Impairment charges

     (10,165     —          (10,165

Other operating expenses

     (8,298     —          (8,298

General and administrative expense

     (39,508     198  (b1)      (39,310
  

 

 

   

 

 

   

 

 

 
     9,350        198        9,548   
  

 

 

   

 

 

   

 

 

 

Operating income

     259,758        (34,324     225,434   

Other income (expenses):

      

Interest and other income, net

     1,451        —      (c)      1,451   

Interest expense

     (184,000     4,037  (b3)      (179,963

Gain on debt transactions

     1,953        —          1,953   
  

 

 

   

 

 

   

 

 

 

Income from continuing operations before income taxes

     79,162        (30,287     48,875   

Income tax benefit

     7,005        —          7,005   
  

 

 

   

 

 

   

 

 

 

Income from continuing operations

     86,167        (30,287     55,880   

Distributions on Preferred Units

     (71,426     —          (71,426

Adjustments for repurchase of Preferred Units

     14,046        —          14,046   

Net loss attributable to noncontrolling interests

     637        —          637   
  

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to common unitholders - continuing operations

   $ 29,424      $ (30,287   $ (863
  

 

 

   

 

 

   

 

 

 

Basic net income (loss) per Common Unit - continuing operations

   $ 0.18        $ (0.02 (d) 
  

 

 

     

 

 

 

Diluted net income (loss) per Common Unit - continuing operations

   $ 0.18        $  (0.02 (d) 
  

 

 

     

 

 

 

Weighted average number of Common Units outstanding

     154,534          154,534   
  

 

 

     

 

 

 

Weighted average number of Common Units and potential dilutive securities

     154,553          154,553   
  

 

 

     

 

 

 

See accompanying Notes to Pro Forma Consolidated Financial Statements


Duke Realty Limited Partnership and Subsidiaries

Notes to Pro Forma Consolidated Financial Statements

(unaudited)

Note 1: Presentation

On December 9, 2011, Duke Realty Limited Partnership (“the Partnership”) and certain of its consolidated subsidiaries completed the sale of a portfolio of 79 real estate properties, consisting of 9.8 million square feet of suburban office properties, to BRE/Central Office Holdings L.L.C., a Delaware limited liability company (the “Buyer”), an affiliate of Blackstone Real Estate Partners VII (herein after, the collective transaction is referred to as the “Blackstone Transaction”). As used herein, “we,” “us” and “our” refers collectively to Duke Realty Limited Partnership and its subsidiaries and affiliated entities.

The purchase price totaled $1.06 billion, of which we received net proceeds of $1.02 billion after (1) the assumption by the buyer of two mortgage loans with a total face value of $24.9 million, (2) the settlement of certain working capital items and (3) general transaction costs. Outstanding borrowings of $ 703.0 million on our $850 million unsecured line of credit were repaid using a portion of the total proceeds.

The accompanying Pro Forma Consolidated Balance Sheet as of September 30, 2011 presents our historical amounts, adjusted for the effects of the Blackstone Transaction, as if such transaction had occurred on September 30, 2011.

The accompanying Pro Forma Consolidated Balance Sheet is unaudited and is not necessarily indicative of what our actual financial position would have been had the Blackstone Transaction actually occurred on September 30, 2011, nor does it purport to represent our future financial position.

The accompanying Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 2011 and 2010 and the years ended December 31, 2010, 2009 and 2008 present our historical amounts, adjusted for the effects of the Blackstone Transaction, as if it had occurred at January 1, 2008.

The accompanying Pro Forma Consolidated Statements of Operations for the nine months ended September 30, 2011 and 2010 and the years ended December 31, 2010, 2009 and 2008 are unaudited and are not necessarily indicative of what our actual results of operations would have been had the Blackstone Transaction actually occurred at January 1, 2008, nor does it purport to represent our future results of operations.


Duke Realty Limited Partnership and Subsidiaries

Notes to Pro Forma Consolidated Financial Statements

(unaudited)

 

Note 2: Pro Forma Consolidated Balance Sheet Notes

 

  (A) Reflects the consolidated historical balance sheet as of September 30, 2011, as contained in the historical consolidated financial statements and notes thereto presented in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011.

 

  (B) Represents adjustments to reflect the Blackstone Transaction as follows:

 

  (B1) Represents the de-recognition of carrying amounts as of September 30, 2011 for the assets, the related accumulated depreciation and working capital assets and liabilities to the 79 properties that were subsequently sold in the Blackstone transaction.

 

  (B2) Represents actual net cash received from the Blackstone Transaction after considering the buyer’s assumption of two mortgage loans and the settlement of net working capital and transaction costs.

 

  (B3) Represents the buyer’s assumptions of two mortgage loans, with outstanding principle amounts at September 30, 2011 of $12.9 million and $12.3 million, respectively. Both mortgage loans mature in November 2014 and bore interest at effective and coupon rates of 5.63% and 7.81%, respectively.

 

       We had previously assumed the two mortgage loans in conjunction with our original acquisition of the underlying properties. At September 30, 2011 there was $1.5 million of carrying value in excess of face value, which represented the unamortized portion of the adjustment required to record the loans at fair value when we originally assumed them. This fair value adjustment was also de-recognized in adjusting the September 30, 2011 consolidated historical balance sheet for the effects of the Blackstone Transaction.

 

  (B4) Represents the General Partner and Limited Partners’ share of the adjustment, calculated as the difference between the actual net proceeds from the Blackstone Transaction received on December 9, 2011 and the net carrying amount of the assets and liabilities assumed to be de-recognized at September 30, 2011, to reflect the effects of the sale of properties in the Blackstone Transaction.

 

  (C) Represents use of proceeds as follows:

 

  (C1) Represents the application of a portion of net proceeds to repay the amount outstanding under our $850 million unsecured line of credit at September 30, 2011.


Duke Realty Limited Partnership and Subsidiaries

Notes to Pro Forma Consolidated Financial Statements

(unaudited)

 

Note 3: Pro Forma Consolidated Statements of Operations Notes

 

(a) Reflects the consolidated results of operations for the nine months ended September 30, 2011 and 2010 and the years ended December 31, 2010, 2009 and 2008, as contained in the historical consolidated financial statements and notes thereto presented in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 and our historical consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended December 31, 2010, respectively.

 

(b) Represents adjustments to reflect the Blackstone Transaction as follows:

 

  (b1) Reflects the revenues and expenses of the properties sold in connection with the Blackstone Transaction for the nine months ended September 30, 2011 and 2010, and the years ended December 31, 2010, 2009, and 2008.

 

  (b2) Reflects adjustments to interest expense to reflect the following: (i) $1.1 million and $1.2 million of interest expense for the nine months ended September 30, 2011 and 2010, respectively, associated with indebtedness secured by the properties that would not have been incurred had the properties been sold at the beginning of the period and (ii) $1.9 million and $400,000 for the nine months ended September 30, 2011 and 2010, respectively, associated with the interest incurred on our $850 million unsecured credit facility that would not have been incurred had we not had any outstanding borrowings during the nine-month periods ended September 30, 2011 and 2010. At no time during the nine-month periods ended September 30, 2011 and 2010 did the outstanding borrowings on our $850 million unsecured credit facility exceed the net proceeds received from the Blackstone Transaction.

 

  (b3) Reflects adjustments to interest expense to reflect the following: (i) $1.6 million, $1.7 million, and $1.7 million of interest expense for the years ended December 31, 2010, 2009 and 2008, respectively, associated with indebtedness secured by the properties that would not have been incurred had the properties been sold at the beginning of the period and (ii) $1.8 million, $2.3 million, and $2.3 million for the years ended December 31, 2010, 2009 and 2008, respectively, associated with the interest incurred on our $850 million unsecured credit facility that would not have been incurred had we not had any outstanding borrowings during the years ended December 31, 2010, 2009, and 2008. At no time during the years ended December 31, 2010, 2009, and 2008 did the outstanding borrowings on our $850 million unsecured credit facility exceed the net proceeds received from the Blackstone Transaction.


Duke Realty Limited Partnership and Subsidiaries

Notes to Pro Forma Consolidated Financial Statements

(unaudited)

 

 

(c) Assuming the Blackstone Transaction closed on January 1, 2008, and that the cash proceeds from the disposition would have been utilized such that we had no outstanding borrowings on our $850 million unsecured credit facility, we would have carried a daily average of $965.0 million, $824.6 million and $481.8 million of additional cash through the years ended December 31, 2010, 2009 and 2008, respectively, and $940.0 million and $1.0 billion during through the nine months ended September 30, 2011 and 2010, respectively.

We did not include any estimated earnings from re-investing these cash proceeds in our Pro Forma Consolidated Statements of Operations.

 

(d) Calculation of basic and diluted loss per Common Unit includes an adjustment of $2.4 million and $1.7 million for distributions on participating securities for the nine months ended September 30, 2011 and 2010, respectively, as reflected in our historical financial statements.

Calculation of basic and diluted loss per Common Unit includes an adjustment of $2.5 million, $1.8 million, and $1.6 million for distributions on participating securities for the years ended December 31, 2010, 2009, and 2008, respectively, as reflected in our historical financial statements.