DCT Industrial Trust Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2

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8-K - FORM 8-K - DCT Industrial Trust Inc.	d479980d8k.htm
EX-99.1 - EXHIBIT 99.1 - DCT Industrial Trust Inc.	d479980dex991.htm

Exhibit 99.2

LOGO

Fourth Quarter 2012

Supplemental Reporting Package

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 Summary			10
Disposition Summary			11
Development Overview			12
Indebtedness			13
Capitalization and Fixed Charge Coverage			14
Investment in Unconsolidated Ventures Summary			15
Definitions			16-18

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 impact of the economic downturn and the strength of the economic recovery and the potential 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, dispositions and developments;

•

natural disasters such as fires, floods, 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.


Fourth Quarter 2012				Page 1
Supplemental Reporting Package

Quarterly Highlights


Same Store Net Operating Income Growth⁽¹⁾		Portfolio Occupancy (%)⁽¹⁾

Total Leasing Volume (square feet, in millions)		Acquisitions/Dispositions⁽²⁾ (in millions)

Top 10 Markets⁽³⁾⁽⁴⁾

Consolidated Operating


	ABR		Occupancy			Occupancy
Market	(thousands)		Q4 2012			Q4 2011			Change
Southern California	$	26,968		99.7	%		99.2	%		0.5	%
Northern California		17,201		98.1	%		87.2	%		10.9	%
Atlanta		17,011		89.1	%		97.6	%		-8.5	%
Houston		16,826		100.0	%		96.5	%		3.5	%
Chicago		16,310		99.7	%		97.5	%		2.2	%
Dallas		14,950		91.8	%		86.6	%		5.2	%
Cincinnati		13,571		91.6	%		86.9	%		4.7	%
Baltimore/Washington, D.C.		9,975		90.3	%		87.6	%		2.7	%
New Jersey		8,429		92.3	%		77.4	%		14.9	%
Memphis		7,981		77.4	%		96.9	%		-19.5	%

Total	$	149,222		93.0	%		92.5	%		0.5	%

⁽¹⁾	Prior period amounts are as previously reported. Same Store NOI excludes lease termination fees.

⁽²⁾	Includes consolidated property acquisitions or dispositions.

⁽³⁾	Based on annualized base rent as of December 31, 2012. Occupancy is as of period end.

⁽⁴⁾	Excludes properties held for sale as of December 31, 2012.


Fourth Quarter 2012				Page 2
Supplemental Reporting Package

Consolidated Statements of Operations

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


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
REVENUES:
Rental revenues	$	68,504		$	60,539		$	256,720		$	231,463
Institutional capital management and other fees		916			1,138			4,059			4,291

Total revenues		69,420			61,677			260,779			235,754

OPERATING EXPENSES:
Rental expenses		8,724			7,947			32,736			31,601
Real estate taxes		9,330			8,258			38,090			34,069
Real estate related depreciation and amortization		30,984			28,454			120,047			113,470
General and administrative		6,928			5,460			26,064			25,925
Casualty gains		(1,413	)		(33	)		(1,554	)		(33	)

Total operating expenses		54,553			50,086			215,383			205,032

Operating income		14,867			11,591			45,396			30,722
OTHER INCOME AND EXPENSE:
Development profits, net of tax		307			—			307			—
Equity in earnings (loss) of unconsolidated joint ventures, net		303			894			1,087			(2,556	)
Impairment losses on investments in unconsolidated joint ventures		—			(19	)		—			(1,953	)
Interest expense		(17,504	)		(17,247	)		(69,274	)		(63,645	)
Interest and other income (expense)		(62	)		(53	)		291			(310	)
Income tax expense and other taxes		(94	)		(38	)		(716	)		(144	)

Loss from continuing operations		(2,183	)		(4,872	)		(22,909	)		(37,886	)
Discontinued operations:
Operating income and other expenses		519			679			4,208			5,220
Gain on dispositions of real estate interests from discontinued operations		1,035			3,823			1,961			3,823

Income from discontinued operations		1,554			4,502			6,169			9,043

Consolidated net loss of DCT Industrial Trust Inc.		(629	)		(370	)		(16,740	)		(28,843	)
Net (income) loss attributable to noncontrolling interests		(216	)		207			1,654			3,593

Net loss attributable to common stockholders		(845	)		(163	)		(15,086	)		(25,250	)

Distributed and undistributed earnings allocated to participating securities		(122	)		(93	)		(524	)		(443	)

Adjusted net loss attributable to common stockholders	$	(967	)	$	(256	)	$	(15,610	)	$	(25,693	)

EARNINGS PER COMMON SHARE – BASIC AND DILUTED:
Loss from continuing operations	$	(0.01	)	$	(0.02	)	$	(0.08	)	$	(0.14	)
Income from discontinued operations		0.01			0.02			0.02			0.03

Net loss attributable to common stockholders	$	(0.00	)	$	(0.00	)	$	(0.06	)	$	(0.11	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and diluted		271,066			245,939			254,831			242,591


Fourth Quarter 2012				Page 3
Supplemental Reporting Package

Consolidated Balance Sheets

(amounts in thousands)


	December 31,			December 31,
	2012			2011
	(unaudited)
ASSETS:
Operating properties	$	3,209,024		$	3,100,172
Properties under development		80,008			9,525
Properties under redevelopment		14,699			4,284
Properties in pre-development including land held		81,796			47,082

Total investment in properties		3,385,527			3,161,063
Less accumulated depreciation and amortization		(605,888	)		(589,314	)

Net investment in properties		2,779,639			2,571,749
Investments in and advances to unconsolidated joint ventures		130,974			139,278

Net investment in real estate		2,910,613			2,711,027
Cash and cash equivalents		12,696			12,834
Restricted cash		19,379			7,502
Deferred loan costs, net		6,838			8,567
Straight-line rent and other receivables, net		51,179			42,349
Other assets, net		12,945			11,019
Assets held for sale		52,852			—

Total assets	$	3,066,502		$	2,793,298

LIABILITIES AND EQUITY:
Accounts payable and accrued expenses	$	57,501		$	45,785
Distributions payable		21,129			19,057
Tenant prepaids and security deposits		24,395			22,864
Other liabilities		7,213			29,797
Intangible lease liability, net		20,148			18,897
Line of credit		110,000			—
Senior unsecured notes		1,025,000			935,000
Mortgage notes		326,617			317,783
Liabilites related to assets held for sale		940			—

Total liabilities		1,592,943			1,389,183

Total stockholders’ equity		1,329,064			1,207,969
Noncontrolling interests		144,495			196,146

Total liabilities and equity	$	3,066,502		$	2,793,298


Fourth Quarter 2012				Page 4
Supplemental Reporting Package

Funds from Operations

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


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
Reconciliation of net loss attributable to common stockholders to FFO:
Net loss attributable to common stockholders	$	(845	)	$	(163	)	$	(15,086	)	$	(25,250	)
Adjustments:
Real estate related depreciation and amortization		32,011			32,149			126,687			128,989
Equity in (earnings) loss of unconsolidated joint ventures, net		(303	)		(894	)		(1,087	)		2,556
Equity in FFO of unconsolidated joint ventures		2,429			2,613			10,312			4,732
Impairment losses on depreciable real estate		—			8,226			11,422			10,160
Gain on dispositions of real estate interests		(1,035	)		(12,030	)		(13,383	)		(12,030	)
Noncontrolling interest in the above adjustments		(2,601	)		(3,399	)		(12,522	)		(14,252	)
FFO attributable to unitholders		2,365			2,965			9,743			9,901

FFO basic and diluted		32,021			29,467			116,086			104,806

FFO attributable to common stockholders and unitholders⁽¹⁾:
Adjustments:
Acquisition costs⁽²⁾		989			493			1,975			1,902

FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted	$	33,010		$	29,960		$	118,061		$	106,708

FFO per common share and unit — basic and diluted	$	0.11		$	0.11		$	0.41		$	0.39

FFO, as adjusted, per common share and unit — basic and diluted	$	0.11		$	0.11		$	0.42		$	0.40

FFO weighted average common shares and units outstanding:
Common shares for earnings per share—basic		271,066			245,939			254,831			242,591
Participating securities		1,995			1,368			1,896			1,601
Units		21,437			25,626			23,358			25,310

FFO weighted average common shares, participating securities and units outstanding – basic		294,498			272,933			280,085			269,502
Dilutive common stock equivalents		662			431			623			449

FFO weighted average common shares, participating securities and units outstanding – diluted		295,160			273,364			280,708			269,951

⁽¹⁾	Funds from operations, FFO, as defined by the National Association of Real Estate Investment Trusts (NAREIT).

⁽²⁾	Excluding amounts attributable to noncontrolling interests.


Fourth Quarter 2012				Page 5
Supplemental Reporting Package

Selected Financial Data

(unaudited, amounts in thousands)


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
NET OPERATING INCOME:⁽¹⁾
Rental revenues	$	68,504		$	60,539		$	256,720		$	231,463
Rental expenses and real estate taxes		(18,054	)		(16,205	)		(70,826	)		(65,670	)

Net operating income⁽²⁾	$	50,450		$	44,334		$	185,894		$	165,793

TOTAL CONSOLIDATED PROPERTIES:⁽³⁾
Square feet as of period end		61,410			58,255			61,410			58,255
Average occupancy		91.0	%		90.1	%		90.5	%		88.6	%
Occupancy as of period end		90.4	%		90.5	%		90.4	%		90.5	%
CONSOLIDATED OPERATING PROPERTIES:⁽³⁾
Square feet as of period end		60,149			58,099			60,149			58,099
Average occupancy		92.3	%		90.0	%		91.0	%		88.8	%
Occupancy as of period end		92.3	%		90.6	%		92.3	%		90.6	%
SAME STORE PROPERTIES:⁽⁴⁾
Square feet as of period end		53,477			53,477			49,916			49,916
Average occupancy		91.7	%		90.0	%		91.1	%		89.8	%
Occupancy as of period end		92.1	%		90.4	%		92.1	%		91.3	%
Rental revenues	$	62,756		$	60,068		$	225,669		$	221,196
Rental expenses and real estate taxes		(16,777	)		(16,131	)		(62,268	)		(62,122	)

Same store net operating income		45,979			43,937			163,401			159,074
Less: revenue from lease terminations		(94	)		(179	)		(462	)		(608	)

Net operating income (excluding revenue from lease terminations)		45,885			43,758			162,939			158,466

Less: straight-line rents, net of related bad debt expense		(997	)		(2,435	)		(3,066	)		(7,217	)
Less: amortization of below market rents, net		(225	)		(201	)		(473	)		(481	)

Cash net operating income (excluding revenue from lease terminations)	$	44,663		$	41,122		$	159,400		$	150,768

Net operating income growth (excluding revenue from lease terminations)		4.9	%		—			2.8	%		—
Cash net operating income growth (excluding revenue from lease terminations)		8.6	%		—			5.7	%		—
SUPPLEMENTAL CONSOLIDATED CASH FLOW AND OTHER INFORMATION:
Straight-line rents - increase to revenue, net of related bad debt expense⁽³⁾	$	1,649		$	2,567		$	6,044		$	9,519
Straight-line rent receivable (balance sheet)⁽³⁾	$	38,914		$	35,300		$	38,914		$	35,300
Net amortization of below market rents – increase to revenue⁽³⁾	$	360		$	242		$	932		$	617
Capitalized interest	$	1,684		$	537		$	4,267		$	2,670
Noncash interest expense⁽³⁾	$	1,292		$	527		$	3,127		$	1,985
Stock-based compensation amortization	$	1,235		$	831		$	4,313		$	4,587
Revenue from lease terminations⁽³⁾	$	154		$	179		$	700		$	636
Bad debt expense, excluding bad debt expense related to straight-line rents⁽³⁾	$	86		$	137		$	607		$	828
CONSOLIDATED CAPITAL EXPENDITURES:⁽³⁾
Development and acquisition capital improvements	$	21,200		$	8,855		$	54,711		$	19,319
Building and land improvements		4,379			5,204			12,372			11,231
Tenant improvements and leasing costs		10,066			13,529			30,514			37,968

Total capital expenditures	$	35,645		$	27,588		$	97,597		$	68,518

⁽¹⁾	Excludes discontinued operations.

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

⁽³⁾	Includes discontinued operations.

⁽⁴⁾	See the Definitions for same store properties.


Fourth Quarter 2012				Page 6
Supplemental Reporting Package

Property Overview

As of December 31, 2012


Markets	Number of Buildings		Percent Owned⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage			Annualized Base Rent⁽²⁾			Percent of Total Annualized Base Rent
						(in thousands)								(in thousands)
CONSOLIDATED OPERATING:
Atlanta		38		100.0	%		6,487		10.6	%		88.0	%	$	18,045			8.3	%
Baltimore/Washington D.C.		18		100.0	%		2,160		3.5	%		90.3	%		9,975			4.6	%
Central Pennsylvania		9		100.0	%		1,553		2.5	%		85.6	%		5,386			2.5	%
Chicago		25		100.0	%		4,655		7.6	%		99.7	%		16,310			7.5	%
Cincinnati		32		100.0	%		4,492		7.3	%		91.6	%		13,571			6.2	%
Columbus		12		100.0	%		3,480		5.7	%		85.9	%		7,154			3.3	%
Dallas		47		100.0	%		5,294		8.6	%		91.8	%		14,950			6.8	%
Denver		2		100.0	%		278		0.5	%		100.0	%		891			0.4	%
Houston		41		100.0	%		2,931		4.8	%		100.0	%		16,826			7.7	%
Indianapolis		7		100.0	%		2,299		3.7	%		97.5	%		7,595			3.5	%
Louisville		4		100.0	%		1,330		2.2	%		99.3	%		4,205			1.9	%
Memphis		10		100.0	%		5,151		8.4	%		78.5	%		11,480			5.3	%
Mexico		15		100.0	%		1,653		2.7	%		98.5	%		7,031			3.2	%
Miami		7		100.0	%		812		1.3	%		97.6	%		6,455			3.0	%
Nashville		4		100.0	%		1,839		3.0	%		89.2	%		4,029			1.8	%
New Jersey		12		100.0	%		1,619		2.6	%		92.3	%		8,429			3.9	%
Northern California		26		100.0	%		3,121		5.1	%		98.1	%		17,201			7.9	%
Orlando		20		100.0	%		1,864		3.0	%		83.6	%		5,872			2.7	%
Phoenix		14		100.0	%		1,717		2.8	%		91.6	%		5,123			2.3	%
San Antonio		13		100.0	%		1,176		1.9	%		97.3	%		3,791			1.7	%
Seattle		10		100.0	%		1,534		2.5	%		100.0	%		6,952			3.2	%
Southern California		36		91.0	%		4,704		7.6	%		99.7	%		26,968			12.3	%

Total/weighted average - operating properties		402		99.3	%		60,149		97.9	%		92.3	%		218,239			100.0	%

REDEVELOPMENT PROPERTIES:
Chicago		1		100.0	%		105		0.2	%		0.0	%		—			0.0	%
New Jersey		1		100.0	%		107		0.2	%		0.0	%		—			0.0	%
Phoenix		1		100.0	%		76		0.1	%		0.0	%		—			0.0	%
Seattle		1		100.0	%		26		0.1	%		0.0	%		—			0.0	%

Total/weighted average – redevelopment properties		4		100.0	%		314		0.6	%		0.0	%		—			0.0	%

DEVELOPMENT PROPERTIES:
Chicago		1		100.0	%		604		1.0	%		0.0	%		—			0.0	%
Baltimore/Washington D.C.		1		100.0	%		76		0.1	%		0.0	%		—			0.0	%
Houston		1		100.0	%		267		0.4	%		0.0	%		—			0.0	%

Total/weighted average – development properties		3		100.0	%		947		1.5	%		0.0	%		—			0.0	%

Total/weighted average - consolidated properties		409		99.3	%		61,410		100.0	%		90.4	%	$	218,239	⁽³⁾		100.0	%

See footnotes on next page.

Continued on next page


Fourth Quarter 2012				Page 7
Supplemental Reporting Package

Property Overview

(continued)

As of December 31, 2012


Markets	Number of Buildings		Percent Owned⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage			Annualized Base Rent⁽²⁾			Percent of Total Annualized Base
						(in thousands)								(in thousands)
UNCONSOLIDATED OPERATING PROPERTIES:
IDI (Chicago, Nashville, Savannah)		3		50.0	%		1,423		10.0	%		44.8	%	$	1,533			3.8	%
Southern California Logistics Airport⁽⁴⁾		6		50.0	%		2,160		15.2	%		98.1	%		6,915			16.9	%

Total/weighted average - unconsolidated operating properties		9		50.0	%		3,583		25.2	%		76.9	%		8,448			20.7	%

OPERATING PROPERTIES IN CO-INVESTMENT VENTURES:
Atlanta		2		3.6	%		616		4.3	%		100.0	%		2,128			5.2	%
Central Pennsylvania		3		7.1	%		1,110		7.8	%		51.0	%		2,244			5.5	%
Charlotte		1		3.6	%		472		3.3	%		100.0	%		1,604			3.9	%
Chicago		3		17.5	%		1,222		8.6	%		74.8	%		3,525			8.6	%
Cincinnati		3		13.6	%		892		6.3	%		97.3	%		2,833			6.9	%
Columbus		2		5.7	%		451		3.2	%		100.0	%		1,326			3.2	%
Dallas		3		15.3	%		1,186		8.3	%		62.7	%		2,525			6.2	%
Denver		5		20.0	%		772		5.4	%		95.9	%		3,481			8.5	%
Indianapolis		1		11.4	%		475		3.3	%		96.2	%		1,788			4.4	%
Louisville		4		10.0	%		736		5.2	%		100.0	%		2,196			5.4	%
Minneapolis		3		3.6	%		472		3.3	%		50.7	%		1,404			3.4	%
Nashville		2		20.0	%		1,020		7.2	%		100.0	%		2,671			6.5	%
New Jersey		1		3.6	%		129		0.9	%		93.8	%		369			0.9	%
Northern California		1		3.6	%		396		2.8	%		100.0	%		1,188			2.9	%
Orlando		2		20.0	%		696		4.9	%		100.0	%		3,168			7.8	%

Total/weighted average - co-investment operating properties		36		12.4	%		10,645		74.8	%		84.9	%		32,450			79.3	%

Total/weighted average - unconsolidated properties		45		21.9	%		14,228		100.0	%		82.9	%	$	40,898			100.0	%

SUMMARY:
Total/weighted average - operating properties		447		84.5	%		74,377		98.3	%		90.5	%	$	259,137			100.0	%
Total/weighted average – redevelopment properties		4		100.0	%		314		0.4	%		0.0	%		—			0.0	%
Total/weighted average – development properties		3		100.0	%		947		1.3	%		0.0	%		—			0.0	%

Total/weighted average - all properties		454		84.7	%		75,638		100.0	%		89.0	%	$	259,137	⁽³⁾		100.0	%

⁽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 currently in free rent periods of $5.7 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.


Fourth Quarter 2012				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
FOURTH QUARTER 2012
New		34			834		-11.3	%		-3.5	%		63	$	2,894	$	3.47
Renewal		38			1,972		6.1	%		18.7	%		56		2,781		1.41
Development and redevelopment		2			492		N/A			N/A			65		N/A		N/A

Total/Weighted Average		74			3,298		3.4	%		15.3	%		59	$	5,675	$	2.02

Weighted Average Retention		75.7	%

YEAR TO DATE 2012
New		136			5,216		-7.6	%		0.9	%		60	$	16,483	$	3.16
Renewal		161			8,647		-1.6	%		5.6	%		48		8,820		1.02
Development and redevelopment		8			1,629		N/A			N/A			88		N/A		N/A

Total/Weighted Average		305			15,492		-2.8	%		4.6	%		56	$	25,303	$	1.83

Weighted Average Retention		73.4	%

Lease Expirations for Consolidated Properties as of December 31, 2012⁽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)
2013⁽⁴⁾		8,136	$	37,139		15.1	%
2014		9,923		40,284		16.4	%
2015		9,004		36,681		14.9	%
2016		8,292		37,080		15.1	%
2017		7,938		32,798		13.3	%
Thereafter		12,231		62,183		25.2	%

Total occupied		55,524	$	246,165		100.0	%

Available or leased but not occupied		5,886

Total consolidated properties		61,410

(1)	Excludes month-to-month leases.

(2)	Assumes no exercise of lease renewal options.

(3)	Includes contractual rent changes.

(4)	Includes month-to-month leases.


Fourth Quarter 2012				Page 9
Supplemental Reporting Package

Acquisition Summary

For the Twelve Months Ended December 31, 2012


	Property Name	Market		Size		Occupancy at Acquisition			Occupancy at December 31, 2012
				(building in sq. ft/ land in acres)
ACQUISITIONS:
January	4802 W Van Buren		Phoenix		76,000		100.0	%		0.0	%
April	2995 Evergreen Drive		Atlanta		157,000		100.0	%		100.0	%
April	785 Center Avenue		Chicago		304,000		50.2	%		100.0	%
May	Claymoore Business Center (2 buildings)		Houston		98,000		95.8	%		100.0	%
June	11400 NW 34th Street		Miami		50,000		100.0	%		100.0	%
June	4117 Pinnacle Point Drive		Dallas		550,000		100.0	%		100.0	%
June	116 Lehigh Drive		New Jersey		107,000		0.0	%		0.0	%
June	7425 Pinemont		Houston		111,000		82.6	%		100.0	%
July	11167 White Burch		Southern California		180,000		100.0	%		100.0	%
August	700 Milwaukee Ave.		Seattle		109,000		100.0	%		100.0	%
October	5501 W Valley Highway		Seattle		26,000		0.0	%		0.0	%
October	2567 Greenleaf		Chicago		105,000		0.0	%		0.0	%
October	Pomona Buisiness Park (4 buildings)		Southern California		211,000		100.0	%		100.0	%
November	Air Freight (3 buildings)		Southern California		471,000		99.6	%		99.6	%
November	Air Freight		Chicago		92,000		100.0	%		100.0	%
December	5800 Coliseum Way		Northern California		337,000		100.0	%		100.0	%
December	2560 White Oak		Chicago		163,000		100.0	%		100.0	%
December	State Highway 225 (2 buildings)		Houston		313,000		100.0	%		100.0	%
December	Della Court		Chicago		67,000		100.0	%		100.0	%
December	13401 Ashmore Ln⁽¹⁾		Dallas		540,000		100.0	%		100.0	%
December	160 Pierce Street⁽¹⁾		New Jersey		88,000		100.0	%		100.0	%
December	7950 Joliet Rd⁽¹⁾		Chicago		303,000		100.0	%		100.0	%
December	6461 Snowdrift⁽¹⁾		Central Pennsylvania		100,000		100.0	%		100.0	%
December	3955 E Holmes Rd⁽¹⁾⁽²⁾		Memphis		1,039,000		74.1	%		74.1	%
December	100 Interstate South⁽¹⁾⁽²⁾		Atlanta		578,000		76.2	%		76.2	%

Total YTD Purchase Price - $338.4 million			Total/ Weighted Average		6,175,000		86.7	%		88.3	%

LAND ACQUISITIONS:
March	DCT 55		Chicago		32.6		N/A			N/A
September	Slover Logistics Center II		Southern California		27.8		N/A			N/A
October	DCT White River Corporate Center		Seattle		46.3		N/A			N/A
November	DCT River West		Atlanta		47.2		N/A			N/A
December	DCT Rialto Distribution Center		Southern California		42.2		N/A			N/A
December	DCT Beltway Tanner Business Park		Houston		11.0		N/A			N/A
December	DCT Sumner South Distribution Center		Seattle		9.3		N/A			N/A

Total YTD Land Purchase Price - $61.5 million			Total		216.4

⁽¹⁾	During December 2012, we purchased the 80% interest in DCT Fund I and consolidated these properties as of December 31, 2012. As of December 31, 2012, we owned 100% of these properties.

⁽²⁾	These properties were held for sale as of December 31, 2012.


Fourth Quarter 2012				Page 10
Supplemental Reporting Package

Disposition Summary


	Property Name	Market	Size		Occupancy at Disposition
			(in sq. ft.)
DISPOSITIONS:
January	5470 Oakbrook Parkway	Atlanta		85,000		85.5	%
February	2820 Peterson Place	Atlanta		19,000		100.0	%
May	5417 Wyoming Avenue	Charlotte		80,000		0.0	%
June	Oak/Reg Service Center (13 buildings)	Atlanta		547,000		69.3	%
August	2301 Cottontail Lane	New Jersey		138,000		0.0	%
August	Houston Portfolio (13 buildings)	Houston		1,005,000		98.1	%
September	1775 Hurd Drive	Dallas		85,000		0.0	%
December	Memphis Distriplex & Technicolor II (2 buildings)	Memphis		1,106,000		100.0	%
December	Rickenbacker I & Creekside III (2 buildings)	Columbus		821,000		100.0	%
December	115 Greenwood Parkway	Atlanta		189,000		100.0	%

Total YTD Sales Price - $155.0 million		Total/ Weighted Average		4,075,000.		87.7	%


Fourth Quarter 2012				Page 11
Supplemental Reporting Package

Development Overview

As of December 31, 2012


											Costs Incurred
Project	Market	Acres		Number of Buildings		Square Feet		Percent Owned			Q4-2012		Cumulative at 12/31/12		Projected Investment			Completion Date	Percentage Leased
						(in thousands)					(in thousands)		(in thousands)		(in thousands)
Stabilized Developments⁽¹⁾
Dulles Summit Distribution Building C	Baltimore/ Wash D.C.		7		1		103		100	%	$	—	$	8,414	$	9,527		Q3-2012		100	%
SCLA Expansion	So. California		7		Expansion		177		50	%		3,056		6,230		6,334		Q4-2012		100	%

			14		1		280		80	%		3,056		14,644		15,861				100	%

Development Projects in Lease Up
Northwest 8 Distribution Center	Houston		16		1		267		100	%		743		11,785		13,238		Q3-2012		100	%
Dulles Summit Distribution Building E	Baltimore/ Wash D.C		6		1		76		100	%		295		6,409		7,123		Q3-2012		100	%
DCT 55	Chicago		33		1		604		100	%		4,671		23,392		27,917		Q4-2012		0	%

			55		3		947		100	%		5,709		41,586		48,278				36	%

Under Construction
DCT Commerce Center at Pan American West (Building A)	Miami		7		1		167		100	%		2,973		13,251		14,354		Q1-2013		90	%
DCT Commerce Center at Pan American West (Building B)	Miami		7		1		167		100	%		2,956		7,771		13,001		Q2-2013		74	%
Slover Logistics Center I	So. California		28		1		652		100	%		422		16,291		36,725		Q3-2013		100	%

			42		3		986		100	%		6,351		37,313		64,080				94	%

Total Development Activities			111		7		2,213		97	%	$	15,116	$	95,543	$	128,219				70	%

Projected Stabilized Yield⁽²⁾																7.7	%

Build-to-Suit Under Contract for Sale
Dulles Summit Lot 10	Baltimore/ Wash D.C.		5		1		61		50	%	$	2,407	$	4,931	$	7,429		Q2-2013		N/A
8th & Vineyard A	So. California		6		1		130		91	%		34		1,891		8,960		Q4-2013		N/A

			11		2		191		80	%	$	2,441	$	6,822	$	16,389

Pre-Development
DCT Airtex Industrial Center	Houston		13						100	%	$	189	$	3,211
8th & Vineyard B	So. California		4						91	%		28		1,188
8th & Vineyard C	So. California		9						91	%		66		2,836
DCT White River Corp. Center I	Seattle		28						100	%		8,263		8,263
DCT White River Corp. Center II	Seattle		19						100	%		5,497		5,497
Slover Logistics Center II	So. California		28						100	%		374		14,642
DCT Rialto Logistics Ctr.	So. California		42						100	%		19,464		19,464
DCT River West	Atlanta		47						100	%		3,131		3,131
DCT Beltway Tanner Business Park	Houston		11						100	%		3,644		3,644
DCT Sumner S. Distribution Center	Seattle		9						100	%		2,871		2,871
Rockdale Distribution Center - Expansion	Nashville		15						100	%		1,074		2,015

			225								$	44,601	$	66,762

⁽¹⁾	Completed development and transferred to Property Overview during 2012.

⁽²⁾	Computed with rents on a straight-line basis.


Fourth Quarter 2012				Page 12
Supplemental Reporting Package

Indebtedness

(dollar amounts in thousands)

As of December 31, 2012


Description	Stated Interest Rate			Effective Interest Rate			Maturity Date	Balance as of December 31, 2012
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⁾		2.31	%		2.31	%	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		4.61	%		7.13	%	August & September 2022		130,000
2023 Notes, fixed rate		5.57	%		5.57	%	August 2023		35,000

								$	1,025,000

MORTGAGE NOTES:
Fixed rate secured debt		5.82	%		5.18	%	Apr. 2013 –Aug. 2025		319,271
Premiums (discounts), net of amortization									7,346

								$	326,617

UNSECURED CREDIT FACILITY:
Senior unsecured revolving credit facility⁽²⁾		2.11	%		2.11	%	June 2015		110,000

Total carrying value of consolidated debt								$	1,461,617

Fixed rate debt		5.66	%		5.82	%			81	%
Variable rate debt		2.23	%		2.23	%			19	%

Weighted average interest rate		4.99	%		5.11	%			100	%

DCT PROPORTIONATE SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT⁽³⁾
Institutional joint ventures								$	10,684
SCLA									34,270

Total								$	44,954

Scheduled Principal Payments of Debt as of December 31, 2012 (excluding premiums and discounts)


Year	Senior Unsecured Notes		Mortgage Notes		Unsecured Credit Facility		Total
2013	$	175,000	$	40,228	$	—	$	215,228
2014		50,000		11,285		—		61,285
2015		215,000		49,732		110,000		374,732
2016		99,000		61,012		—		160,012
2017		51,000		11,586		—		62,586
2018		81,500		6,221		—		87,721
2019		46,000		50,819		—		96,819
2020		50,000		64,847		—		114,847
2021		92,500		18,256		—		110,756
2022		130,000		3,073		—		133,073
Thereafter		35,000		2,212		—		37,212

Total	$	1,025,000	$	319,271	$	110,000	$	1,454,271

⁽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 $190.0 million available under the unsecured revolving credit facility as of December 31, 2012.

⁽³⁾	Based on our ownership share as of December 31, 2012.


Fourth Quarter 2012				Page 13
Supplemental Reporting Package

Capitalization and Fixed Charge Coverage

(unaudited, dollar amounts in thousands, except share price)

Capitalization at December 31, 2012


Description	Shares or Units ⁽¹⁾		Share Price		Market Value
	(in thousands)
Common shares outstanding		280,310	$	6.49	$	1,819,212
Operating partnership units outstanding		19,976	$	6.49		129,644

Total equity market capitalization						1,948,856

Consolidated debt						1,461,617
Less: Noncontrolling interests’ share of consolidated debt⁽²⁾						(6,180	)
Proportionate share of debt related to unconsolidated joint ventures						44,954

DCT share of total debt						1,500,391

Total market capitalization					$	3,449,247

DCT share of total debt to total market capitalization						43.5	%

Fixed Charge Coverage


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
Net income (loss) attributable to common stockholders⁽³⁾	$	(845	)	$	(163	)	$	(15,086	)	$	(25,250	)
Interest expense		17,504			17,347			69,403			64,254
Proportionate share of interest expense from unconsolidated joint ventures		734			722			3,100			3,077
Real estate related depreciation and amortization		32,011			32,149			126,687			128,989
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures		1,689			1,390			7,462			6,177
Income tax (benefit) expense and other taxes		94			38			716			144
Stock-based compensation amortization		1,235			831			4,313			4,587
Noncontrolling interests		216			(207	)		(1,654	)		(3,593	)
Non-FFO gains on dispositions of real estate interests		(1,035	)		(12,030	)		(13,383	)		(12,030	)
Impairment losses⁽⁴⁾		—			8,226			11,422			10,160

Adjusted EBITDA	$	51,603		$	48,303		$	192,980		$	176,515

CALCULATION OF FIXED CHARGES
Interest expense	$	17,504		$	17,347		$	69,403		$	64,254
Capitalized interest		1,684			537			4,267			2,670
Amortization of loan costs and debt premium/discount		(284	)		(277	)		(1,093	)		(1,015	)
Other noncash interest expense		(1,008	)		(251	)		(2,034	)		(970	)
Proportionate share of interest expense from unconsolidated joint ventures		734			722			3,100			3,077

Total fixed charges	$	18,630		$	18,078		$	73,643		$	68,016

Fixed charge coverage		2.8			2.7			2.6			2.6

⁽¹⁾	Excludes 1.5 million unvested Long-Term Incentive Plan Units, 0.5 million shares of unvested Restricted Stock and 0.1 million unvested Phantom Shares outstanding as of December 31, 2012.

⁽²⁾	Amount includes the portion of consolidated debt related to properties in which there are noncontrolling ownership interests.

⁽³⁾	Includes amounts related to discontinued operations, where applicable.

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


Fourth Quarter 2012				Page 14
Supplemental Reporting Package

Investment in Unconsolidated Ventures Summary

(unaudited, dollar amounts in thousands)

Statements of Operations & Other Data


	For the year ended December 31, 2012
	TRT-DCT JV I			TRT-DCT JV II			TRT-DCT JV III			JP Morgan			IDI/DCT			IDI/DCT Buford			Stirling Capital Investments
Total rental revenues	$	12,805		$	7,164		$	2,822		$	20,806		$	2,151		$	—		$	10,897
Rental expenses and real estate taxes		(3,997	)		(1,735	)		(536	)		(5,298	)		(776	)		(36	)		(1,680	)

Net operating income		8,808			5,429			2,286			15,508			1,375			(36	)		9,217

Depreciation and amortization		(7,188	)		(3,114	)		(1,132	)		(10,088	)		(1,665	)		—			(5,890	)
General and administrative		(76	)		(14	)		(9	)		(772	)		(6	)		(6	)		(909	)
Interest expense		(6,954	)		(3,195	)		(780	)		—			(678	)		—			(3,468	)
Interest and other income (expense)		(20	)		(41	)		2,456			2,879			(1	)		—			(349	)

Net income (loss)	$	(5,430	)	$	(935	)	$	2,821		$	7,527		$	(975	)	$	(42	)	$	(1,399	)

Other Data:
Number of buildings		14			5			4			13			3			—			6
Square feet (in thousands)		3,561			1,744			736			4,604			1,423			—			2,160
Occupancy		77.3	%		94.3	%		100.0	%		84.8	%		44.8	%		0.0	%		98.1	%
DCT Ownership		3.6	%		11.4	%		10.0	%		20.0	%		50.0	%		75.0	%		50.0	%⁽¹⁾

Balance Sheets


	As of December 31, 2012
	TRT-DCT JV I			TRT-DCT JV II			TRT-DCT JV III			JP Morgan			IDI/DCT			IDI/DCT Buford		Stirling Capital Investments
Total investment in properties	$	208,636		$	91,055		$	25,417		$	276,090		$	55,431		$	6,390	$	110,832
Accumulated depreciation and amortization		(49,456	)		(19,873	)		(5,029	)		(52,525	)		(4,399	)		—		(12,092	)

Net investment in properties		159,180			71,182			20,388			223,565			51,032			6,390		98,740
Cash and cash equivalents		241			1,043			198			2,695			810			1		473
Other assets		3,194			1,956			419			5,708			1,055			6		3,694

Total assets	$	162,615		$	74,181		$	21,005		$	231,968		$	52,897		$	6,397	$	102,907

Other liabilities	$	4,108		$	1,629		$	330		$	4,849		$	576		$	2	$	2,604
Debt maturities – 2013		—			—			—			—			16,675	⁽⁵⁾		—		—
Debt maturities – 2014		—			39,725	⁽³⁾		—			—			—			—		—
Debt maturities – 2015		31,476	⁽²⁾⁾		9,993	⁽³⁾		—			—			—			—		—
Debt maturities – 2016		—			—			8,425	⁽⁴⁾		—			—			—		—
Debt maturities thereafter		85,000	⁽²⁾		—			—			—			—			—		81,653	⁽⁶⁾

Total debt		116,476			49,718			8,425			—			16,675			—		81,653

Total liabilities		120,584			51,347			8,755			4,849			17,251			2		84,257
Partners or members’ capital		42,031			22,834			12,250			227,119			35,646			6,395		18,650

Total liabilities and Partners’ or members’ capital	$	162,615		$	74,181		$	21,005		$	231,968		$	52,897		$	6,397	$	102,907

⁽¹⁾	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.

⁽²⁾	$85.0 million of debt requires interest only payments until 2017 and has a stated interest rate of 5.7%. $31.5 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%. $10.0 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%.

⁽⁴⁾	$8.4 million of debt requires principal and interest payments until 2016 and has a stated interest rate of 7.4%.

⁽⁵⁾	$16.7 million of debt requires interest only payments through October 2013 and has a variable interest rate of LIBOR plus 3.25%. DCT does not have any obligation under this debt.

⁽⁶⁾	$68.6 million of debt requires interest only payments through October 2017 and has a variable interest rate of LIBOR plus 2.2%. $13.1 million of debt is payable to DCT and requires principal and interest payments through June 2022 and has a fixed rate of 8.5%.


Fourth Quarter 2012				Page 15
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 and land improvements, development costs and acquisition capital, tenant improvement and leasing costs required to maintain current revenues and/or improve real estate assets.

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 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 attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains from dispositions of operating real estate held for investment purposes, plus impairment losses on depreciable real estate and impairments of in substance real estate investments in investees that are driven by measureable decreases in the fair value of the depreciable real estate held by the unconsolidated joint ventures 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 on properties which are not depreciable. We believe that FFO excluding severance, acquisition costs, debt modification costs and impairment losses on non-depreciable real estate 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. 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 are 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 comparable lease. New leases where there were no prior comparable leases, due to extended downtime or materially different lease structures, are excluded.

Net Effective Rent:

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


Fourth Quarter 2012				Page 16
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 institutional capital management fees, depreciation, amortization, casualty gains, impairment, general and administrative expenses, equity in (earnings) loss of unconsolidated joint ventures, interest expense, interest and other income and income tax expense and other taxes. 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. Additionally, lease termination revenue is excluded as it is not considered to be indicative of recurring operating performance. 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. 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).


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2012			2011			2012			2011
Reconciliation of loss from continuing operations to NOI:
Loss from continuing operations	$	(2,183	)	$	(4,872	)	$	(22,909	)	$	(37,886	)
Income tax expense (benefit) and other taxes		94			38			716			144
Interest and other (income) expense		62			53			(291	)		310
Interest expense		17,504			17,247			69,274			63,645
Equity in (earnings) loss of unconsolidated joint ventures, net		(303	)		(894	)		(1,087	)		2,556
General and administrative		6,928			5,460			26,064			25,925
Real estate related depreciation and amortization		30,984			28,454			120,047			113,470
Impairment losses on investments in unconsolidated joint ventures		—			19			—			1,953
Development profits, net of tax		(307	)		—			(307	)		—
Casualty gains		(1,413	)		(33	)		(1,554	)		(33	)
Institutional capital management and other fees		(916	)		(1,138	)		(4,059	)		(4,291	)

Total GAAP net operating income		50,450			44,334			185,894			165,793
Less net operating (income) loss - non-same store properties		(4,471	)		(397	)		(22,493	)		(6,719	)

Same store GAAP net operating income		45,979			43,937			163,401			159,074
Less revenue from lease terminations		(94	)		(179	)		(462	)		(608	)

Same store GAAP net operating income, excluding revenue from lease terminations		45,885			43,758			162,939			158,466
Less straight-line rents, net of related bad debt expense		(997	)		(2,435	)		(3,066	)		(7,217	)
Less amortization of above/(below) market rents		(225	)		(201	)		(473	)		(481	)

Same store cash net operating income, excluding revenue from lease terminations	$	44,663		$	41,122		$	159,400		$	150,768

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 and properties Held for Sale that have been owned and stabilized for the entire current and prior periods presented.


Fourth Quarter 2012				Page 17
Supplemental Reporting Package

Definitions

(continued)

Same Store Net Operating Income Growth:

The change in same store net operating income growth is calculated by dividing the change in NOI, year over year, by the preceding period NOI, based on a same store population for the quarter most recently 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:
	December 31, 2011			March 31, 2012			June 30, 2012			September 30, 2012			December 31, 2012
Reconciliation of loss from continuing operations to NOI:
Loss from continuing operations	$	(4,677	)	$	(6,916	)	$	(6,850	)	$	(4,645	)	$	(2,183	)
Income tax expense (benefit) and other taxes		38			268			287			68			94
Interest and other (income) expense		53			(197	)		37			(194	)		62
Interest expense		17,104			17,028			17,540			17,299			17,504
Equity in (earnings) loss of unconsolidated joint ventures, net		(894	)		854			(430	)		(1,208	)		(303	)
General and administrative		5,459			5,785			6,513			6,838			6,928
Real estate related depreciation and amortization		31,106			32,139			30,747			30,862			30,984
Impairment losses		448			—			—			—			—
Impairment losses on investments in unconsolidated joint ventures		19			—			—			—			—
Development profits, net of tax		—			—			—			—			(307	)
Casualty gains		(33	)		(155	)		(57	)		—			(1,413	)
Institutional capital management and other fees		(1,138	)		(1,055	)		(1,151	)		(937	)		(916	)

Total GAAP net operating income		47,485			47,751			46,636			48,083			50,450
Less net operating income - non-same store properties		(6,095	)		(4,430	)		(2,232	)		(4,038	)		(4,471	)

Same store GAAP net operating income		41,390			43,321			44,404			44,045			45,979
Less revenue from lease terminations		(179	)		(73	)		(110	)		(186	)		(94	)

Same store GAAP net operating income, excluding revenue from lease terminations		41,211			43,248			44,294			43,859			45,885
Less straight-line rents, net of related bad debt expense		(1,460	)		(1,078	)		(799	)		(1,059	)		(997	)
Less amortization of above/(below) market rents		(168	)		(142	)		(83	)		(91	)		(225	)

Same store cash net operating income, excluding revenue from lease terminations	$	39,583		$	42,028		$	43,412		$	42,709		$	44,663


	Consolidated operating data, as previously reported, for the three months ended:
	December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011			December 31, 2011
Reconciliation of loss from continuing operations to NOI:
Loss from continuing operations	$	(12,628	)	$	(10,388	)	$	(10,596	)	$	(9,822	)	$	(4,872	)
Income tax expense (benefit) and other taxes		(137	)		40			121			(56	)		38
Interest and other (income) expense		(245	)		(85	)		(13	)		356			53
Interest expense		15,333			15,511			13,955			16,515			17,247
Equity in loss of unconsolidated joint ventures, net		786			1,357			1,126			967			(894	)
General and administrative		6,734			7,056			7,063			6,346			5,460
Real estate related depreciation and amortization		28,186			29,846			29,615			30,495			28,454
Impairment losses		4,100			—			—			—			—
Impairment losses on investments in unconsolidated joint ventures		216			—			1,934			—			19
Casualty gains		—			—			—			—			(33	)
Institutional capital management and other fees		(1,082	)		(1,019	)		(1,129	)		(1,004	)		(1,138	)

Total GAAP net operating income		41,263			42,318			42,076			43,797			44,334
Less net operating (income) loss—non-same store properties		(251	)		(579	)		829			(845	)		(397	)

Same store GAAP net operating income		41,012			41,739			42,905			42,952			43,937
Less revenue from lease terminations		(96	)		(54	)		(128	)		(246	)		(179	)

Same store GAAP net operating income, excluding revenue from lease terminations		40,916			41,685			42,777			42,706			43,758
Less straight-line rents, net of related bad debt expense		(1,610	)		(3,014	)		(1,855	)		(1,657	)		(2,435	)
Less amortization of above/(below) market rents		(17	)		(115	)		(85	)		(102	)		(201	)

Same store cash net operating income, excluding revenue from lease terminations	$	39,289		$	38,556		$	40,837		$	40,947		$	41,122

Change in GAAP same store NOI		0.7	%		3.8	%		3.5	%		2.7	%		4.9	%

Change in cash same store NOI		0.7	%		9.0	%		6.3	%		4.3	%		8.6	%

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.

Total Project Investment:

An estimate of total expected capital expenditures on development properties in accordance with GAAP.

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 and 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.

Yield – Under Construction (Projected):

Calculated as projected stabilized Net Operating Income divided by total projected investment

Fourth Quarter 2012

Supplemental Reporting Package

Page 18

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