-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CVE3BcQJ1BYw4bdq+BmVMWgXtK9fCEhAa744mEkCbAYx0ropY4XEYFD8nSlLwXuj DIHdZtHbibMkcvToyhwLQg== 0000783280-97-000085.txt : 19971111 0000783280-97-000085.hdr.sgml : 19971111 ACCESSION NUMBER: 0000783280-97-000085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971110 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19971110 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DUKE REALTY INVESTMENTS INC CENTRAL INDEX KEY: 0000783280 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 351740409 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09044 FILM NUMBER: 97711762 BUSINESS ADDRESS: STREET 1: 8888 KEYSTONE CROSSING STE 1200 CITY: INDIANAPOLIS STATE: IN ZIP: 46240 BUSINESS PHONE: 3175743531 8-K 1 8-K As filed with the Securities and Exchange Commission on November 10, 1997 - ----------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): November 10, 1997 DUKE REALTY INVESTMENTS, INC. (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) Commission File Number: 1-9044 ------ State or Other Jurisdiction of Incorporation I.R.S. Employer Identification No. Indiana 35-1740409 - --------------------------------------- --------------- Address of principal executive offices: 8888 Keystone Crossing, Suite 1200 ---------------------------------- Indianapolis, Indiana 46240 --------------------------- Telephone: (317) 846-4700 -------------------------- NOT APPLICABLE (Former name or former address changed since last report) - ----------------------------------------------------------------- ITEM 5. OTHER EVENTS ACQUISITIONS: The following acquisitions of properties were made by Duke Realty Investments, Inc. (DRE) from unrelated parties in unrelated transactions. None of these acquisitions involved a significant amount of assets within the meaning of the instructions to Form 8-K. DRE acquired these properties because DRE believes that industrial and office property investments in the midwestern United States present excellent long-term opportunities for consistent rental increases, high occupancy levels and value appreciation. THE GROUP A PROPERTIES CONSIST OF THE FOLLOWING PROPERTIES FOR WHICH AN AUDITED COMBINED STATEMENT OF REVENUES AND CERTAIN EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1996 IS PRESENTED IN THIS FORM 8-K: DRE acquired a 50% interest through a joint venture in the Central Park of Lisle office property on May 15, 1997 from an insurance company. DRE acquired the Executive Towers office properties on August 28, 1997 from a real estate company. DRE acquired the Riverport office and industrial properties on September 26, 1997 from a limited partnership. THE GROUP B PROPERTIES CONSIST OF THE FOLLOWING PROPERTIES WHICH ARE INCLUDED IN THE PRO FORMA CONSOLIDATED BALANCE SHEET AND PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS OF DRE PRESENTED IN THIS FORM 8-K: DRE acquired the NGIC and Pointe 70 office properties on April 18, 1997 from an individual developer. DRE acquired the Dyment and Johnson Controls industrial properties on April 30, 1997 from a corporation. DRE acquired the 8555 Keystone office property on June 26, 1997 from a real estate corporation. DRE acquired the Kentucky Drive industrial properties on July 18, 1997 from an insurance company. DRE acquired the One Ashview office property on August 19, 1997 from a limited partnership. DRE acquired the Remington industrial properties on August 28, 1997 from a real estate company. DRE acquired the Oaktree office property on September 30, 1997 from a corporation. DRE acquired the Solon industrial properties on October 22, 1997 from a limited partnership. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBIT (a) Pro Forma Consolidated Financial Information: Pro Forma Consolidated Balance Sheet as of June 30, 1997 (unaudited) Pro Forma Consolidated Statement of Operations for the year ended December 31, 1996 (unaudited) Pro Forma Consolidated Statement of Operations for the six months ended June 30, 1997 (unaudited) Notes to Pro Forma Consolidated Financial Statements (b) Financial Statements: Independent Auditors' Report Combined Statements of Revenues and Certain Expenses for the Group A Properties for the year ended December 31, 1996 and the period from January 1, 1997 through June 30, 1997 (unaudited) Notes to Combined Statements of Revenues and Certain Expenses (c) Exhibit: Exhibit 23.1 - Independent Auditors' Consent SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Duke Realty Investments, Inc. (Registrant) Date: November 10, 1997 By: /s/ Dennis D. Oklak --------------------- Dennis D. Oklak Executive Vice President and Chief Administrative Officer DUKE REALTY INVESTMENTS, INC. PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following unaudited pro forma consolidated financial statements of Duke Realty Investments, Inc. (DRE) reflect the acquisition by DRE of the properties listed in this Form 8-K, Item 5. The pro forma consolidated financial statements have been prepared based upon certain pro forma adjustments to the historical consolidated financial statements of DRE. Share and per share amounts in the consolidated financial statements of DRE have been restated to reflect the two-for-one split of DRE's common stock payable on August 25, 1997 to common shareholders of record on August 18, 1997. The accompanying unaudited pro forma consolidated balance sheet as of June 30, 1997 has been prepared as if the properties acquired subsequent to June 30, 1997 had been acquired as of the balance sheet date. The accompanying unaudited pro forma consolidated statements of operations for the year ended December 31, 1996 and the six months ended June 30, 1997 have been prepared as if the property acquisitions had occurred as of January 1, 1996. Interest expense and dividends on preferred stock were adjusted to reflect the cost of the pro forma line of credit borrowings and the preferred stock issuance that would have been required for these acquisitions. The unaudited pro forma consolidated financial statements do not purport to be indicative of the results which would actually have been obtained had the transactions described above been completed on the dates indicated or which may be obtained in the future. The unaudited pro forma consolidated financial statements should be read in conjunction with the combined statements of revenues and certain expenses for the properties included herein and the financial statements of DRE. DUKE REALTY INVESTMENTS, INC. PRO FORMA CONSOLIDATED BALANCE SHEET JUNE 30, 1997 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
PRO FORMA ASSETS HISTORICAL ADJUSTMENTS PRO FORMA - ---------------- ---------- ----------- --------- Real estate investments: Rental property $1,299,177 $193,105 (a) $1,492,282 Construction in progress 77,808 - 77,808 Land held for development 82,780 - 82,780 --------- ------- --------- 1,459,765 193,105 1,652,870 Accumulated depreciation (96,491) - (96,491) --------- ------- --------- Net real estate investments 1,363,274 193,105 1,556,379 Cash 3,107 (2,000)(b) 1,107 Accounts receivable from tenants 3,008 - 3,008 Straight-line rent receivable 12,376 - 12,376 Receivables on construction contracts 10,839 - 10,839 Investments in unconsolidated companies 112,837 - 112,837 Deferred financing costs 7,562 - 7,562 Deferred leasing and other costs 30,502 - 30,502 Escrow deposits and other assets 7,374 - 7,374 --------- ------- --------- $1,550,879 $191,105 $1,741,984 ========= ======= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Indebtedness: Secured debt $ 271,857 $ - $ 271,857 Unsecured notes 240,000 - 240,000 Unsecured line of credit 103,000 45,055 (b) 148,055 --------- ------- --------- 614,857 45,055 659,912 Construction payables and amounts due subcontractors 35,065 - 35,065 Accounts payable 2,545 - 2,545 Accrued real estate taxes 15,034 - 15,034 Accrued interest 5,106 - 5,106 Other accrued expenses 7,029 - 7,029 Other liabilities 7,807 - 7,807 Tenant security deposits and prepaid rents 9,348 - 9,348 --------- ------- --------- Total liabilities 696,791 45,055 741,846 Minority interest 18,867 - 18,867 --------- ------- --------- Shareholders' equity: Preferred shares ($.01 par value), 5,000 shares authorized: 9.10% Series A preferred shares and paid-in capital, 300 shares issued and outstanding 72,288 - 72,288 7.99% Series B preferred shares and paid-in capital, 300 shares issued and outstanding - 146,050 (c) 146,050 Common shares and paid-in capital ($.01 par value); 150,000 authorized; 63,320 shares issued and outstanding 813,625 - 813,625 Distributions in excess of net income (50,692) - (50,692) --------- ------- --------- Total shareholders' equity 835,221 146,050 981,271 --------- ------- --------- $1,550,879 $191,105 $1,741,984 ========= ======= =========
See accompanying notes to pro forma consolidated financial statements. DUKE REALTY INVESTMENTS, INC. PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Year ended December 31, 1996 ------------------------------------------------- Historical ----------------------- Acquisitions Current Pro Forma DRE DRE Report (d) Adjustments Pro Forma -------- ------------ ----------- --------- RENTAL OPERATIONS: Revenues: Rental income $156,392 $42,757 $(6,567) (e) $192,582 Equity in earnings of unconsolidated companies 5,768 - 2,234 (f) 8,002 ------- ------ ------ ------- 162,160 42,757 (4,333) 200,584 ------- ------ ------ ------- Operating expenses: Rental expenses 29,669 7,976 (995) (g) 36,650 Real estate taxes 14,244 4,291 (702) (h) 17,833 Interest expense 31,344 - 7,514 (i) 38,858 Depreciation and amortization 32,571 - 5,062 (j) 37,633 ------- ------ ------- ------- 107,828 12,267 10,879 130,974 ------- ------ ------- ------- Earnings from rental operations 54,332 30,490 (15,212) 69,610 ------- ------ ------- ------- SERVICE OPERATIONS: Revenues: Property management, maintenance and leasing fees 11,496 - - 11,496 Construction management and development fees 6,895 - - 6,895 Other income 1,538 - - 1,538 ------- ------ ------- ------- 19,929 - - 19,929 ------- ------ ------- ------- Operating expenses: Payroll 9,176 - - 9,176 Maintenance 1,526 - - 1,526 Office and other 2,791 - - 2,791 ------- ------ ------- ------- 13,493 - - 13,493 ------- ------ ------- ------- Earnings from service operations 6,436 - - 6,436 ------- ------ ------- ------- General and administrative expense (4,719) - - (4,719) ------- ------ ------- ------- Operating income 56,049 30,490 (15,212) 71,327 OTHER INCOME (EXPENSE): Interest income 1,194 - - 1,194 Earnings from property sales 4,532 - - 4,532 Other expense (174) - - (174) Minority interest in earnings of unitholders (7,184) - (403) (k) (7,587) Other minority interest in earnings of subsidiaries (986) - - (986) ------- ------ ------- ------- Net income 53,431 30,490 (15,615) 68,306 Dividends on preferred shares (2,559) - (11,985) (l) (14,544) ------- ------ ------- ------- Net income available for common shares $ 50,872 $30,490 $(27,600) $ 53,762 ======= ====== ======= ======= Net income per common share $ .91 $ .96 ======= ======= Weighted average number of common shares outstanding 56,134 56,134 ======= =======
See accompanying notes to pro forma consolidated financial statements. DUKE REALTY INVESTMENTS, INC. PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Six months ended June 30, 1997 ------------------------------------------------ Historical ---------------------- Acquisitions Current Pro Forma DRE DRE Report (d) Adjustments Pro Forma -------- ----------- ----------- --------- RENTAL OPERATIONS: Revenues: Rental income $ 98,860 $19,244 $(2,310) (e) $115,794 Equity in earnings of unconsolidated companies 3,644 - 915 (f) 4,559 ------- ------ ------- ------- 102,504 19,244 (1,395) 120,353 ------- ------ ------- ------- Operating expenses: Rental expenses 18,022 3,706 (304) (g) 21,424 Real estate taxes 9,115 2,141 (294) (h) 10,962 Interest expense 17,951 - 3,106 (i) 21,057 Depreciation and amortization 20,241 - 2,255 (j) 22,496 ------- ------- ------ ------- 65,329 5,847 4,763 75,939 ------- ------- ------ ------- Earnings from rental operations 37,175 13,397 (6,158) 44,414 ------- ------ ------- ------- SERVICE OPERATIONS: Revenues: Property management, maintenance and leasing fees 5,855 - - 5,855 Construction management and development fees 2,711 - - 2,711 Other income 502 - - 502 ------- ------ ------- ------- 9,068 - - 9,068 ------- ------ ------- ------- Operating expenses: Payroll 4,885 - - 4,885 Maintenance 916 - - 916 Office and other 1,093 - - 1,093 ------- ------ ------- ------- 6,894 - - 6,894 ------- ------ ------- ------- Earnings from service operations 2,174 - - 2,174 ------- ------ ------- ------- General and administrative expense (2,890) - - (2,890) ------- ------ ------- ------- Operating income 36,459 13,397 (6,158) 43,698 OTHER INCOME (EXPENSE): Interest income 427 - - 427 Earnings from property sales 382 - - 382 Other expense (419) - - (419) Minority interest in earnings of unitholders (3,330) - (124) (k) (3,454) Other minority interest in earnings of subsidiaries (425) - - (425) ------- ------ ------- ------- Net income 33,094 13,397 (6,282) 40,209 Dividends on preferred shares (3,412) - (5,993) (l) (9,405) ------- ------ ------- ------- Net income available for common shares $29,682 $13,397 $(12,275) $ 30,804 ====== ====== ======= ======= Net income per common share $ .48 $ .49 ====== ======= Weighted average number of common shares outstanding 62,400 62,400 ====== =======
See accompanying notes to pro forma consolidated financial statements. DUKE REALTY INVESTMENTS, INC. NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1997 (DOLLARS IN THOUSANDS) (UNAUDITED) (a) Represents cost of DRE's property acquisitions subsequent to June 30, 1997 as follows:
Property Acquisition Date -------- ---------------- Kentucky Drive July 18, 1997 One Ashview August 19, 1997 Remington August 28, 1997 Executive Towers August 29, 1997 Riverport September 26, 1997 Oak Tree September 30, 1997 Solon October 22, 1997
(b) Reflects the use of cash on hand of $2.0 million and line of credit borrowings of $45.1 million utilized to partially fund acquisitions of properties subsequent to June 30, 1997. (c) Represents net proceeds from DRE's $150 million issuance of Series B Cumulative Step-Up Premium Rate Preferred Shares which were issued in July 1997 utilized to partially fund acquisitions of properties subsequent to June 30, 1997. (d) Reflects historical revenues and certain expenses on properties acquired in 1997 listed in this Form 8-K Item 5 for the year ended December 31, 1996 or for the period from January 1, 1997 to the earlier of the respective dates of acquisition or June 30, 1997. Historical revenues and certain expenses exclude amounts which would not be comparable to the proposed future operations of the properties, such as interest expense, interest income, management fees and depreciation. The following table presents the historical financial information for the Group A Properties and the Group B Properties included in the pro forma statements of earnings:
For the Year Ended December 31, 1996 ------------------------------------ Real Rental Rental Estate Income Expense Taxes ------ ------- ------ Group A Properties $29,805 $5,659 $2,835 Group B Properties 12,952 2,317 1,456 ------ ----- ----- Totals $42,757 $7,976 $4,291 ====== ===== =====
DUKE REALTY INVESTMENTS, INC. NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1997 (DOLLARS IN THOUSANDS) (UNAUDITED)
For the Six Months Ended June 30, 1997 -------------------------------------- Real Rental Rental Estate Income Expense Taxes ------ ------- ------ For the period January 1, 1997 to the earlier of the date of acquisition or June 30, 1997: Group A Properties $12,678 $2,514 $1,413 Group B Properties 6,566 1,192 728 ------ ----- ----- Totals $19,244 $3,706 $2,141 ====== ===== =====
(e) Reflects the following pro forma adjustments:
For the year ended For the six months ended December 31, 1996 June 30, 1997 ------------------ ------------------------ Increase in straight-line rental income $ 1,308 $ 723 Adjustment of rental income to reflect the acquisition of Central Park of Lisle through a joint venture in which DRE owns a 50% interest (7,875) (3,033) ------ ------ $(6,567) $(2,310) ====== ======
(f) Reflects the equity in earnings related to Central Park of Lisle which was acquired through a joint venture in which DRE owns a 50% interest. (g) Reflects the following pro forma adjustments:
For the year ended For the six months ended December 31, 1996 June 30, 1997 ------------------ ------------------------ Decrease in rental expenses due to the acquisition of Central Park of Lisle through a joint venture $(1,368) $(477) Increase in rental expenses to reflect the management fee cost of DRE 373 173 ------- ----- $ (995) $(304) ======= =====
(h) Decrease in real estate taxes due to the acquisition of Central Park of Lisle through a joint venture. DUKE REALTY INVESTMENTS, INC. NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1997 (DOLLARS IN THOUSANDS) (UNAUDITED) (i) Represents pro forma interest expense related to utilization of line of credit borrowings that would have been required if the property acquisitions had occurred at January 1, 1996:
For the year ended For the six months ended December 31, 1996 June 30, 1997 ------------------ ------------------------ Pro forma line of credit borrowings for properties acquired subsequent to June 30, 1997 $ 45,055 $ 45,055 Line of credit borrowings required for 1997 acquisitions made prior to June 30, 1997 67,309 67,309 ------- ------- Total pro forma line of credit borrowings $112,364 $112,364 Current interest rate 6.6875% 6.6875% Proration factor 1.0 .50 ------- ------- $ 7,514 $ 3,757 Interest expense recorded on DRE's historical financial statements related to acquisitions made prior to June 30, 1997 - (651) ------- ------- $ 7,514 $ 3,106 ======= =======
(j) Reflects pro forma depreciation expense adjustment resulting from acquired properties based on the depreciable basis of DRE's acquisition cost, assuming asset lives of 40 years. (k) Reflects pro forma effect of minority interest in earnings of unitholders. (l) Represents the dividends on the 7.99% Series B Preferred Shares assuming they were issued January 1, 1996. INDEPENDENT AUDITORS' REPORT - ---------------------------- To the Directors DUKE REALTY INVESTMENTS, INC.: We have audited the accompanying combined statement of revenues and certain expenses (the Combined Statement) of the Group A Properties described in note 1 for the year ended December 31, 1996. This Combined Statement is the responsibility of management. Our responsibility is to express an opinion on this Combined Statement based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the Combined Statement is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the Combined Statement. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the Combined Statement. We believe that our audit provides a reasonable basis for our opinion. The accompanying Combined Statement was prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Form 8-K to be filed by Duke Realty Investments, Inc. as described in note 2. The presentation is not intended to be a complete presentation of the combined revenues and expenses of the Group A Properties. In our opinion, the Combined Statement referred to above presents fairly, in all material respects, the combined revenues and certain expenses as described in note 2 of the Group A Properties for the year ended December 31, 1996, in conformity with generally accepted accounting principles. KPMG Peat Marwick LLP Indianapolis, Indiana October 20, 1997 DUKE REALTY INVESTMENTS, INC. GROUP A PROPERTIES COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD FROM JANUARY 1, 1997 THROUGH JUNE 30, 1997 (IN THOUSANDS)
Period from January 1, 1997 through June 30, 1996 1997 (unaudited) -------- ---------------- Revenues: Rental income $29,805 $12,678 ------ ------ Certain expenses: Housekeeping 1,283 612 Utilities 1,793 769 Repairs and maintenance 1,699 777 Other 884 356 ------ ------ 5,659 2,514 Real estate taxes 2,835 1,413 ------ ------ 8,494 3,927 ------ ------ Revenues in excess of certain expenses $21,311 $ 8,751 ====== ======
See accompanying notes to the combined statements of revenues and certain expenses. DUKE REALTY INVESTMENTS, INC. GROUP A PROPERTIES NOTES TO COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD FROM JANUARY 1, 1997 THROUGH JUNE 30, 1997 (UNAUDITED) (1)OPERATING PROPERTIES The Combined Statements of Revenues and Certain Expenses (the Combined Statements) for the year ended December 31, 1996 and the period from January 1, 1997 to the earlier of the respective dates of acquisition or through June 30, 1997 relates to the operations of the following properties ("Group A Properties") which have been acquired by Duke Realty Investments, Inc. (DRE) from unaffiliated parties:
Property Metropolitan Area Acquisition Date -------------------- ----------------- ---------------- Central Park of Lisle Chicago May 15, 1997 Executive Towers Chicago August 28, 1997 Riverport St. Louis September 26, 1997
(2)BASIS OF PRESENTATION The accompanying Combined Statements have been prepared on the accrual basis of accounting. The Combined Statements have been prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission and for inclusion in Form 8-K to be filed by DRE. The Combined Statements are not intended to be a complete presentation of combined revenues and expenses of the Group A Properties. The Combined Statements exclude certain amounts which would not be comparable to the proposed future operations of the properties as follows: (a) depreciation of building and tenant improvements; (b) interest expense related to debt; (c) interest income; (d) management fees; and (e) other income and expense items unique to the prior owners. (3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Rental Operations Rental income from leases with scheduled rental increases during their terms is recognized for financial reporting purposes on a straight-line basis. DUKE REALTY INVESTMENTS, INC. GROUP A PROPERTIES NOTES TO COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES (CONCLUDED) YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD FROM JANUARY 1, 1997 THROUGH JUNE 30, 1997 (UNAUDITED) Use of Estimates The preparation of the Combined Statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the amounts reported in the Combined Statements and accompanying notes. Actual results could differ from those estimates. Unaudited Interim Combined Statement The Combined Statement of Revenues and Certain Expenses for the period from January 1, 1997 through June 30, 1997 is unaudited. In the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the Combined Statement for the interim period have been included. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year for the Group A Properties. (4) LEASING ACTIVITY Future minimum rents due to the Group A Properties at December 31, 1996 are scheduled as follows (in thousands):
Year Amount ---- ----- 1997 $ 9,347 1998 23,762 1999 21,427 2000 18,796 2001 11,655 Thereafter 34,621 ------- $119,608 =======
The 1997 future minimum rents due amount is presented from the DRE acquisition date through December 31, 1997. EX-23 2 EXHIBIT 23.1 INDEPENDENT AUDITORS' CONSENT To the Directors Duke Realty Investments, Inc.: We consent to incorporation by reference in the registration statements (No. 333-04695; No. 333-26845; No. 33-64567; No. 33- 64659; No. 333-24289; and No. 333-26833), on Form S-3 and No. 33- 55727 on Form S-8 of our report dated October 20, 1997 relating to the Combined Statement of Revenues and Certain Expenses of the Group A Properties for the year ended December 31, 1996, which report appears in the current report on Form 8-K of Duke Realty Investments, Inc. dated November 10, 1997. KPMG Peat Marwick LLP Indianapolis, Indiana November 4, 1997 -----END PRIVACY-ENHANCED MESSAGE-----