EX-99.2 5 a2091385zex-99_2.htm EX-99.2
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Exhibit 99.2

DUKE REALTY CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
For the Years Ended December 31,
(in thousands, except per share amounts)

 
   2001
   2000
   1999
  
RENTAL OPERATIONS:                    
Revenues:                    
  Rental income   $ 685,779   $ 692,266   $ 522,527  
  Equity in earnings of unconsolidated companies     31,391     14,556     11,613  
   
 
 
 
      717,170     706,822     534,140  
   
 
 
 
Operating Expenses:                    
  Rental expenses     121,089     117,689     88,062  
  Real estate taxes     70,523     70,819     54,101  
  Interest expense     112,338     132,018     86,450  
  Depreciation and amortization     158,050     161,716     110,638  
   
 
 
 
      462,000     482,242     339,251  
   
 
 
 
    Earnings from rental operations     255,170     224,580     194,889  
   
 
 
 
SERVICE OPERATIONS:                    
Revenues:                    
  General contractor gross revenue     264,455     292,661     216,079  
  General contractor costs     (229,845 )   (253,763 )   (188,021 )
   
 
 
 
    Net general contractor revenue     34,610     38,898     28,058  
  Property management, maintenance and leasing fees     22,824     25,477     21,941  
  Construction and development activity income     19,142     16,965     2,870  
  Other income     3,883     1,459     1,162  
   
 
 
 
    Total revenue     80,459     82,799     54,031  
Operating expenses     45,344     50,039     36,159  
   
 
 
 
    Earnings from service operations     35,115     32,760     17,872  
   
 
 
 
General and administrative expense     (15,559 )   (21,144 )   (16,555 )
   
 
 
 
    Operating income     274,726     236,196     196,206  

OTHER INCOME (EXPENSE):
 
 
 
 
 
 
 
 
 
 
  Interest income     5,303     6,861     2,669  
  Gain on sale of land and depreciable property dispositions, net of impairment allowance     45,708     60,692     10,012  
  Other expense     (2,582 )   (963 )   (1,091 )
  Other minority interest in earnings of subsidiaries     (2,411 )   (2,145 )   (2,050 )
  Minority interest in earnings of common unitholders     (32,172 )   (31,839 )   (19,749 )
  Minority interest in earnings of preferred unitholders     (8,408 )   (8,408 )   (4,204 )
   
 
 
 
    Income from continuing operations     280,164     260,394     181,793  

Discontinued operations:
 
 
 
 
 
 
 
 
 
 
  Net income from discontinued operations, net of minority interest     2,245     1,545     447  
   
 
 
 
Net income     282,409     261,939     182,240  
Dividends on preferred shares     (52,442 )   (48,981 )   (42,604 )
   
 
 
 
  Net income available for common shareholders   $ 229,967   $ 212,958   $ 139,636  
   
 
 
 
Basic net income per common share:                    
  Continuing operations   $ 1.75   $ 1.67   $ 1.33  
  Discontinued operations     0.02     0.01     —  
   
 
 
 
Total   $ 1.77   $ 1.68   $ 1.33  
   
 
 
 
Diluted net income per common share:                    
  Continuing operations   $ 1.73   $ 1.65   $ 1.32  
  Discontinued operations     0.02     0.01     —  
   
 
 
 
Total   $ 1.75   $ 1.66   $ 1.32  
   
 
 
 
Weighted average number of common shares outstanding     129,660     126,836     104,884  
   
 
 
 
Weighted average number of common and dilutive potential common shares     151,710     147,441     120,511  
   
 
 
 

See accompanying Notes to Consolidated Financial Statements.


DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements—(Continued)

(15)    Discontinued Operations

The Company adopted Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment or Disposal of Long Lived Assets" ("SFAS 144"), on January 1, 2002. SFAS 144 requires the Company to report in discontinued operations the results of operations of a property which has either been disposed or is classified as held for sale, unless certain conditions are met.

The Company classified the results of operations of three buildings as discontinued operations in accordance with SFAS No. 144. The results of operations for the held for sale properties as identified in Footnote 6 are included in continuing operations as these properties were identified for sale prior to the adoption of SFAS 144. The effect of the adoption of SFAS 144 resulted in net income, net of minority interest, of $2.2 million, $1.5 million and $447,000 being classified as net income from discontinued operations for the years ended December 31, 2001, 2000, and 1999, respectively.



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DUKE REALTY CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations For the Years Ended December 31, (in thousands, except per share amounts)
DUKE REALTY CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued)