EX-99.1 14 a08-2526_1ex99d1.htm EX-99.1

Exhibit 99.1

 

SELECTED QUARTERLY FINANCIAL INFORMATION

(Unaudited)

 

Selected quarterly information for the years ended December 31, 2007 and 2006 is as follows (in thousands, except per share amounts):

 

 

 

Quarter Ended

 

2007

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

Revenues from continuing Rental Operations

 

$

219,068

 

$

202,799

 

$

196,893

 

$

205,109

 

Revenues from continuing Service Operations

 

42,316

 

20,273

 

22,039

 

14,730

 

Net income available for common shareholders

 

$

58,666

 

$

53,387

 

$

37,076

 

$

68,563

 

Basic income per common share

 

$

0.40

 

$

0.39

 

$

0.27

 

$

0.50

 

Diluted income per common share

 

$

0.40

 

$

0.39

 

$

0.27

 

$

0.49

 

Weighted average common shares

 

145,623

 

137,576

 

136,921

 

136,823

 

Weighted average common shares and potential dilutive common equivalents

 

154,467

 

147,651

 

148,129

 

149,465

 

Funds From Operations (1)

 

$

116,750

 

$

93,673

 

$

87,282

 

$

86,327

 

 

 

 

 

 

 

 

 

 

 

2006

 

December 31

 

September 30

 

June 30

 

March 31

 

 

 

 

 

 

 

 

 

 

 

Revenues from continuing Rental Operations

 

$

208,424

 

$

195,614

 

$

194,650

 

$

182,864

 

Revenues from continuing Service Operations

 

47,927

 

22,474

 

9,718

 

10,006

 

Net income available for common shareholders

 

$

50,196

 

$

61,734

 

$

21,717

 

$

11,448

 

Basic income per common share

 

$

0.37

 

$

0.46

 

$

0.16

 

$

0.08

 

Diluted income per common share

 

$

0.37

 

$

0.45

 

$

0.16

 

$

0.08

 

Weighted average common shares

 

134,665

 

135,117

 

134,969

 

134,781

 

Weighted average common shares and potential dilutive common equivalents

 

149,020

 

150,947

 

149,364

 

149,265

 

Funds From Operations (1)

 

$

102,788

 

$

88,787

 

$

78,756

 

$

67,677

 

(1)          Funds From Operations (“FFO”) is used by industry analysts and investors as a supplemental operating  performance measure of an equity real estate investment trust (“REIT”) like Duke. FFO is calculated in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”).  NAREIT created FFO as a supplemental measure of REIT operating performance that excludes historical cost depreciation, among other items, from  net income determined in accordance with United States generally accepted accounting principles (“GAAP”).  FFO is a non-GAAP financial measure developed by NAREIT to compare the operating performance of REITs.  The most comparable GAAP measure is net income (loss).  FFO should not be considered as a substitute for net income or any other measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other companies.

 

Historical cost accounting for real estate assets in accordance with GAAP implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, many industry analysts and investors have considered presentation of operating results for real estate companies that use historical cost accounting to be insufficient by themselves. FFO, as defined by NAREIT, represents GAAP net income (loss), excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated real estate assets, plus certain non-cash items such as real estate asset depreciation and amortization, and after similar adjustments for unconsolidated partnerships and joint ventures.

 

Management believes that the use of FFO, combined with the required primary GAAP presentations, improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. Management believes FFO is a useful measure for reviewing comparative operating and financial performance (although FFO should be reviewed in conjunction with net income which remains the primary measure of performance) because by excluding gains or losses related to sales of previously depreciated real estate assets and excluding real estate asset depreciation and amortization, FFO provides a useful comparison of the operating performance of our real estate between periods or as compared to different companies.