8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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 26, 2008

DUKE REALTY CORPORATION

(Exact name of registrant as specified in its charter)

Indiana	1-9044	35-1740409
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

600 East 96th Street

Suite 100

Indianapolis, IN 46240

(Address of principal executive offices, zip code)

Registrant’s telephone number, including area code: (317) 808-6000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 8 – Other Events

Item 8.01. Other Events

We expect to file a registration statement on Form S-3 during November 2008 in order to register additional shares under our Direct Stock Purchase and Dividend Reinvestment Plan. In connection with the expected filing, we have reclassified the operations of certain properties that have either sold subsequent to December 31, 2007, or that were held for sale and classified as discontinued operations at December 31, 2007 but no longer meet the applicable criteria, within our consolidated financial statements and notes to consolidated financial statements that were previously filed in our 2007 Annual Report on Form 10-K.

As previously reported, in October 2001, FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets (“SFAS No. 144”), which became effective on January 1, 2002. SFAS No. 144 requires us to report in discontinued operations the results of operations of a property that has either been disposed of or is classified as held for sale, unless certain conditions are met. SFAS No. 144 further requires us to reclassify results of operations from a property disposed or held for sale as income from discontinued operations during all reported periods. The purpose of this Current Report on Form 8-K is to set forth audited consolidated financial statements of Duke Realty Corporation for the years ended December 31, 2007, 2006 and 2005, including revised notes thereto, which reflect the reclassification of the operations of certain properties to or from discontinued operations in accordance with SFAS No. 144.

During the nine-month period ended September 30, 2008, we sold six properties owned by us and not classified as assets held for sale as of December 31, 2007. The results of operations from such properties have been reclassified as income from discontinued operations for the years ended December 31, 2007, 2006 and 2005 in the accompanying consolidated financial statements and notes to consolidated financial statements. Additionally, there were 14 properties that we had classified as held for sale as of December 31, 2007, and whose results of operations were included as income from discontinued operations for the years ended December 31, 2007, 2006 and 2005, that were reclassified to continuing operations during the nine months ended September 30, 2008 as the result of no longer meeting the applicable criteria under SFAS No. 144 for held for sale classification. There is no effect on the previously reported net income available for common shareholders.

Management does not believe that this reclassification in accordance with SFAS No. 144 has a material effect on our selected consolidated financial data or management’s discussion and analysis of financial condition and results of operations for the years ended December 31, 2007, 2006 and 2005 as previously reported in our 2007 Annual Report on Form 10-K. We are not revising Management’s Discussion and Analysis (MD&A) included in our 2007 Annual Report on Form 10-K given the insignificance of the reclassified amounts.

Section 9 – Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

Exhibit Number	Description
12	Statement re: Calculation of Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends
23	Consent of KPMG LLP
99.1	Report of Independent Registered Public Accounting Firm
99.2	Consolidated Financial Statements and Notes to Consolidated Financial Statements, Years Ended December 31, 2007, 2006 and 2005
99.3	Schedule III – Duke Realty Corporation Combined Real Estate and Accumulated Depreciation – December 31, 2007

SIGNATURES

Pursuant to the requirements of the Securities 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 CORPORATION
By:	/s/ Dennis D. Oklak
	Dennis D. Oklak
	Chairman and Chief Executive Officer
	(Principal Executive Officer and Principal Financial Officer)

Dated: November 26, 2008

EX-12

Exhibit 12

Statement re: Calculation of Ratios of Earnings to

Combined Fixed Charges and Preferred Stock Dividends

(Dollars in thousands)

	Nine Months Ended September 30, 2008		Year Ended December 31, 2007		Year Ended December 31, 2006		Year Ended December 31, 2005		Year Ended December 31, 2004		Year Ended December 31, 2003
Income from continuing operations, less preferred dividends	$	21,894	$	103,481	$	94,894	$	88,220	$	97,981	$	101,105
Preferred dividends		53,038		58,292		56,419		46,479		33,777		37,321
Minority interest in earnings of common unitholders		1,640		6,778		9,539		8,893		10,334		10,962
Interest expense		143,657		172,616		173,255		108,518		100,058		91,596
Earnings before fixed charges	$	220,229	$	341,167	$	334,107	$	252,110	$	242,150	$	240,984
Interest expense	$	143,657	$	172,616	$	173,255	$	108,518	$	100,058	$	91,596
Interest costs capitalized		42,549		59,167		36,260		9,510		5,961		6,734
Total fixed charges		186,206		231,783		209,515		118,028		106,019		98,330
Preferred dividends		53,038		58,292		56,419		46,479		33,777		37,321
Total fixed charges and preferred dividends	$	239,244	$	290,075	$	265,934	$	164,507	$	139,796	$	135,651
Ratio of earnings to fixed charges		1.18		1.47		1.59		2.14		2.28		2.45
Ratio of earnings to combined fixed charges and preferred dividends		N/A		1.18		1.26		1.53		1.73		1.78

N/A—The ratio is less than 1.0; deficit of $19,015 exists for the nine months ended September 30, 2008.

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Duke Realty Corporation:

We consent to the incorporation by reference in the registration statements No. 333-136173, No. 333-140796, No. 333-128132, No. 333-62381, No. 333-66919, No. 333-26833, No. 333-82063, No. 333-44858, No. 333-51344, No. 333-108556, No. 333-120492, and No. 333-70678 on Form S-3, No. 333-77645 on Form S-4 and No. 333-124364, No. 333-82061, No. 333-35162, No. 333-42513, No. 333-113907, and No. 333-128133 on Form S-8 and the registration statement on Form S-3 to be filed on November 28, 2008 of Duke Realty Corporation of our report dated February 29, 2008, except as to notes 6 and 8, which are as of November 26, 2008, with respect to the consolidated balance sheets of Duke Realty Corporation and Subsidiaries as of December 31, 2007 and 2006, and the related consolidated statements of operations, cash flows and shareholders’ equity for each of the years in the three-year period ended December 31, 2007, the related financial statement schedule III, and the effectiveness of internal control over financial reporting as of December 31, 2007, which report appears in the current report on Form 8-K of Duke Realty Corporation dated November 26, 2008.

/s/ KPMG LLP

Indianapolis, Indiana

November 26, 2008

EX-99.1

Exhibit 99.1

Report of Independent Registered Public Accounting Firm

The Shareholders and Directors of

Duke Realty Corporation:

We have audited the consolidated balance sheets of Duke Realty Corporation and Subsidiaries (the “Company”) as of December 31, 2007 and 2006 and the related consolidated statements of operations, cash flows and shareholders’ equity for each of the years in the three-year period ended December 31, 2007. In connection with our audits of the consolidated financial statements, we also have audited the financial statement schedule III. We have audited the Company’s internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company’s management is responsible for these consolidated financial statements and financial statement schedule, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying management’s report on internal control. Our responsibility is to express an opinion on these consolidated financial statements and the financial statement schedule and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Duke Realty Corporation and Subsidiaries as of December 31, 2007 and 2006, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2007, in conformity with U.S generally accepted accounting principles. Also, in our opinion, the related financial statement schedule III, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein. Also, in our opinion, Duke Realty Corporation and Subsidiaries maintained, in all material respects, effective internal control over financial reporting as of December 31, 2007, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.

/s/ KPMG LLP

Indianapolis, Indiana

February 29, 2008, except as to notes 6 and 8, which are as of November 26, 2008

EX-99.2

Exhibit 99.2

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

As of December 31,

(in thousands, except per share amounts)

	2007			2006
ASSETS
Real estate investments:
Land and improvements	$	872,372		$	844,091
Buildings and tenant improvements		4,600,408			4,211,602
Construction in progress		412,729			359,765
Investments in and advances to unconsolidated companies		601,801			628,323
Land held for development		912,448			737,752
		7,399,758			6,781,533
Accumulated depreciation		(951,375	)		(867,079	)
Net real estate investments		6,448,383			5,914,454
Real estate investments and other assets held-for-sale		273,591			512,925
Cash and cash equivalents		48,012			68,483
Accounts receivable, net of allowance of $1,359 and $1,088		29,009			24,118
Straight-line rent receivable, net of allowance of $2,886 and $1,915		110,737			105,319
Receivables on construction contracts, including retentions		66,925			64,768
Deferred financing costs, net of accumulated amortization of $29,170 and $19,492		55,987			62,277
Deferred leasing and other costs, net of accumulated amortization of $150,702 and $127,155		374,635			311,553
Escrow deposits and other assets		254,702			174,698
	$	7,661,981		$	7,238,595
LIABILITIES AND SHAREHOLDERS’ EQUITY
Indebtedness:
Secured debt	$	524,393		$	515,192
Unsecured notes		3,246,000			3,129,653
Unsecured lines of credit		546,067			317,000
		4,316,460			3,961,845
Liabilities of properties held for sale		8,954			155,185
Construction payables and amounts due subcontractors, including retentions		142,655			136,508
Accrued expenses:
Real estate taxes		63,796			59,276
Interest		54,631			52,106
Other		59,221			63,217
Other liabilities		148,013			118,901
Tenant security deposits and prepaid rents		34,535			31,121
Total liabilities		4,828,265			4,578,159
Minority interest		83,683			156,853
Shareholders’ equity:
Preferred shares ($.01 par value); 5,000 shares authorized; 2,976 and 3,241 shares issued and outstanding		744,000			876,250
Common shares ($.01 par value); 250,000 shares authorized; 146,175 and 133,921 shares issued and outstanding		1,462			1,339
Additional paid-in capital		2,632,615			2,196,388
Accumulated other comprehensive income (loss)		(1,279	)		5,435
Distributions in excess of net income		(626,765	)		(575,829	)
Total shareholders' equity		2,750,033			2,503,583
	$	7,661,981		$	7,238,595

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

For the Years Ended December 31,

(in thousands, except per share amounts)

	2007			2006			2005
RENTAL OPERATIONS
Revenues:
Rental revenue from continuing operations	$	810,622		$	757,946		$	618,121
Equity in earnings of unconsolidated companies		29,381			38,004			29,549
		840,003			795,950			647,670
Operating expenses:
Rental expenses		181,532			173,535			143,320
Real estate taxes		100,505			86,054			75,236
Interest expense		172,616			173,255			108,518
Depreciation and amortization		273,513			237,632			207,701
		728,166			670,476			534,775
Earnings from continuing rental operations		111,837			125,474			112,895
SERVICE OPERATIONS
Revenues:
General contractor gross revenue		280,537			308,562			380,173
General contractor costs		(246,872	)		(284,633	)		(348,263	)
Net general contractor revenue		33,665			23,929			31,910
Service fee revenue		31,011			21,633			20,149
Gain on sale of service operations properties		34,682			44,563			29,882
Total service operations revenue		99,358			90,125			81,941
Operating expenses		47,324			36,929			37,663
Earnings from service operations		52,034			53,196			44,278
General and administrative expense		(37,691	)		(35,812	)		(30,981	)
Operating income		126,180			142,858			126,192
OTHER INCOME (EXPENSE)
Interest and other income, net		12,135			10,450			4,637
Earnings from sale of land, net of impairment adjustments		33,422			7,791			14,201
Minority interest in earnings of common unitholders		(6,778	)		(9,539	)		(8,893	)
Other minority interest in earnings of subsidiaries		(3,186	)		(247	)		(1,438	)
Income from continuing operations		161,773			151,313			134,699
Discontinued operations:
Income (loss) from discontinued operations, net of minority interest		4,129			10,701			16,670
Gain on sale of depreciable property, net of impairment adjustments and minority interest		113,565			42,133			204,293
Income from discontinued operations		117,694			52,834			220,963
Net income		279,467			204,147			355,662
Dividends on preferred shares		(58,292	)		(56,419	)		(46,479	)
Adjustments for redemption of preferred shares		(3,483	)		(2,633	)		—
Net income available for common shareholders	$	217,692		$	145,095		$	309,183
Basic net income per common share:
Continuing operations	$	.72		$	.69		$	.63
Discontinued operations		.84			.39			1.56
Total	$	1.56		$	1.08		$	2.19
Diluted net income per common share:
Continuing operations	$	.71		$	.68		$	.62
Discontinued operations		.84			.39			1.55
Total	$	1.55		$	1.07		$	2.17
Weighted average number of common shares outstanding		139,255			134,883			141,508
Weighted average number of common shares and potential dilutive common equivalents		149,614			149,393			155,877

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31,

(in thousands)

	2007			2006			2005
Cash flows from operating activities:
Net income	$	279,467		$	204,147		$	355,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements		214,477			206,999			204,377
Amortization of deferred leasing and other costs		63,214			47,269			49,793
Amortization of deferred financing costs		11,212			8,617			6,154
Minority interest in earnings		17,743			14,953			31,493
Straight-line rent adjustment		(16,843	)		(20,795	)		(22,519	)
Earnings from land and depreciated property sales		(154,493	)		(49,614	)		(238,060	)
Build-for-sale operations, net		(84,547	)		(148,849	)		(6,295	)
Construction contracts, net		(25,818	)		1,749			16,196
Other accrued revenues and expenses, net		24,150			26,752			15,356
Operating distributions received in excess of (less than) equity in earnings from unconsolidated companies		(4,631	)		(18,339	)		(3,055	)
Net cash provided by operating activities		323,931			272,889			409,102
Cash flows from investing activities:
Development of real estate investments		(451,162	)		(385,516	)		(209,990	)
Acquisition of real estate investments and related intangible assets		(116,021	)		(735,294	)		(285,342	)
Acquisition of land held for development		(317,324	)		(435,917	)		(135,771	)
Recurring tenant improvements		(45,296	)		(41,895	)		(60,633	)
Recurring leasing costs		(32,238	)		(32,983	)		(33,175	)
Recurring building improvements		(8,402	)		(8,122	)		(15,232	)
Other deferred leasing costs		(39,387	)		(22,429	)		(19,425	)
Other deferred costs and other assets		644			880			(20,281	)
Proceeds from land and depreciated property sales, net		480,943			180,825			1,134,667
Capital distributions from unconsolidated companies		235,754			296,573			—
Capital contributions and advances to unconsolidated companies, net		(142,330	)		(50,182	)		(31,599	)
Net cash provided by (used for) investing activities		(434,819	)		(1,234,060	)		323,219
Cash flows from financing activities:
Proceeds from issuance of common shares		239,605			—			—
Payments for repurchases of common shares		—			(101,282	)		(287,703	)
Proceeds from exercise of stock options		1,197			6,672			3,945
Proceeds from issuance of preferred shares, net		—			283,994			—
Payments for redemption of preferred shares		(132,272	)		(75,010	)		—
Redemption of limited partner units		—			—			(2,129	)
Proceeds from unsecured debt issuance		340,160			1,429,497			400,000
Payments on unsecured debt		(223,657	)		(350,000	)		(665,000	)
Proceeds from issuance of secured debt		—			1,029,426			—
Payments on secured indebtedness including principal amortization		(24,780	)		(750,354	)		(46,675	)
Borrowings (payments) on lines of credit, net		229,067			(66,000	)		383,000
Distributions to common shareholders		(265,698	)		(255,502	)		(264,980	)
Distributions to common shareholders – special dividends		—			—			(143,836	)
Distributions to preferred shareholders		(58,292	)		(56,419	)		(46,479	)
Distributions to minority interest, net		(19,576	)		(24,207	)		(26,653	)
Distributions to minority interest – special distributions		—			—			(14,069	)
Payment for capped call option		—			(26,967	)		—
Cash settlement of interest rate swaps		10,747			733			—
Deferred financing costs		(6,084	)		(41,659	)		(599	)
Net cash provided by (used for) financing activities		90,417			1,002,922			(711,178	)
Net increase (decrease) in cash and cash equivalents		(20,471	)		41,751			21,143
Cash and cash equivalents at beginning of year		68,483			26,732			5,589
Cash and cash equivalents at end of year	$	48,012		$	68,483		$	26,732
Other non-cash items:
Assumption of debt for real estate acquisitions	$	34,259		$	217,520		$	11,743
Contributions of real estate investments to, net of debt assumed by, unconsolidated companies	$	146,593		$	505,440		$	—
Conversion of Limited Partner Units to common shares	$	179,092		$	39,918		$	18,085
Issuance of Limited Partner Units for acquisition	$	11,020		$	—		$	—
Common shares repurchased and retired, not settled	$	—		$	—		$	9,357
Issuance of Limited Partner Units for acquisition of minority interest	$	—		$	—		$	15,000

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Consolidated Statements of Shareholders’ Equity

(in thousands, except per share data)

	Preferred Stock			Common Stock			Additional Paid-in Capital			Accumulated Other Comprehensive Income			Distributions In Excess of Net Income			Total
Balance at December 31, 2004	$	657,250		$	1,429		$	2,538,461		$	(6,547	)	$	(364,724	)	$	2,825,869
Comprehensive Income:
Net income		—			—			—			—			355,662			355,662
Losses on derivative instruments		—			—			—			(571	)		—			(571	)
Comprehensive income																	355,091
Issuance of common shares		—			2			4,141			—			—			4,143
Acquisition of minority interest		—			6			18,079			—			—			18,085
Tax benefits from employee stock plans		—			—			245			—			—			245
Stock based compensation expense		—			—			2,032			—			—			2,032
Dividends on long-term compensation plans		—			—			216			—			(216	)		—
Retirement of common shares		—			(90	)		(296,970	)		—			—			(297,060	)
Distributions to preferred shareholders		—			—			—			—			(46,479	)		(46,479	)
Distributions to common shareholders ($1.87 per share)		—			—			—			—			(265,076	)		(265,076	)
Distributions to common shareholders – Special ($1.05 per share)		—			—			—			—			(144,052	)		(144,052	)
Balance at December 31, 2005	$	657,250		$	1,347		$	2,266,204		$	(7,118	)	$	(464,885	)	$	2,452,798
Comprehensive Income:
Net income		—			—			—			—			204,147			204,147
Gains on derivative instruments		—			—			—			12,553			—			12,553
Comprehensive income		—			—			—			—			—			216,700
Issuance of common shares		—			5			6,181			—			—			6,186
Redemption of Preferred Series I shares		(75,000	)		—			(10	)		—			—			(75,010	)
Adjustment for carrying value of preferred stock redemption		—			—			2,633			—			(2,633	)		—
Issuance of Preferred Series M shares		184,000			—			(6,266	)		—			—			177,734
Issuance of Preferred Series N shares		110,000			—			(3,740	)		—			—			106,260
Acquisition of minority interest		—			10			39,908			—			—			39,918
Capped call option		—			—			(26,967	)		—			—			(26,967	)
Tax benefits from employee stock plans		—			—			606			—			—			606
Stock based compensation expense		—			—			8,892			—			—			8,892
Dividends on long-term compensation plans		—			—			849			—			(849	)		—
Distributions to preferred shareholders		—			—			—			—			(56,419	)		(56,419	)
Retirement of common shares		—			(23	)		(91,902	)		—			—			(91,925	)
Distributions to common shareholders ($1.89 per share)		—			—			—			—			(255,190	)		(255,190	)
Balance at December 31, 2006	$	876,250		$	1,339		$	2,196,388		$	5,435		$	(575,829	)	$	2,503,583
Effect of implementing new accounting principle		—			—			—			—			(1,717	)		(1,717	)
Balance at January 1, 2007	$	876,250		$	1,339		$	2,196,388		$	5,435		$	(577,546	)	$	2,501,866
Comprehensive Income:
Net income		—			—			—			—			279,467			279,467
Losses on derivative instruments		—			—			—			(6,714	)		—			(6,714	)
Comprehensive Income																	272,753
Issuance of common shares		—			73			239,532			—			—			239,605
Redemption of Preferred Series B shares		(132,250	)		—			(22	)		—			—			(132,272	)
Adjustment for carrying value of preferred stock redemption		—			—			3,483			—			(3,483	)		—
Stock based compensation plan activity		—			2			14,190			—			(1,213	)		12,979
Acquisition of minority interest		—			48			179,044			—			—			179,092
Distributions to preferred shareholders		—			—			—			—			(58,292	)		(58,292	)
Distributions to common shareholders ($1.91 per share)		—			—			—			—			(265,698	)		(265,698	)
Balance at December 31, 2007	$	744,000		$	1,462		$	2,632,615		$	(1,279	)	$	(626,765	)	$	2,750,033

See accompanying Notes to Consolidated Financial Statements.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(1) The Company

Our Rental Operations (see Note 8) are conducted through Duke Realty Limited Partnership (“DRLP”). We owned approximately 94.9% of the common partnership interests of DRLP (“Units”) at December 31, 2007. The remaining Units in DRLP are redeemable for shares of our common stock on a one-to-one basis and earn dividends at the same rate as shares of our common stock. We conduct our Service Operations (see Note 8) through Duke Realty Services LLC and Duke Realty Services Limited Partnership, of which we are the sole general partner and of which DRLP is the sole limited partner. We also conduct Service Operations through Duke Construction Limited Partnership, which is effectively 100% owned by DRLP. The consolidated financial statements include our accounts and our majority-owned or controlled subsidiaries, and the terms “we”, “us” and “our” refer to Duke Realty Corporation and subsidiaries (the “Company”) and those entities owned or controlled by the Company.

(2) Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include our accounts and our controlled subsidiaries. The equity interests in these controlled subsidiaries not owned by us are reflected as minority interests in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Investments in entities that we do not control through majority voting interest or where the other owner has substantial participating rights are not consolidated and are reflected as investments in unconsolidated companies under the equity method of reporting.

Reclassifications

Certain 2006 and 2005 balances have been reclassified to conform to the 2007 presentation.

Real Estate Investments

Rental real property, including land, land improvements, buildings and building improvements, are included in real estate investments and are generally stated at cost. Buildings and land improvements are depreciated on the straight-line method over their estimated life not to exceed 40 and 15 years, respectively, and tenant improvement costs are depreciated using the straight-line method over the term of the related lease.

Direct and certain indirect costs clearly associated with and incremental to the development, construction, leasing or expansion of real estate investments are capitalized as a cost of the property. In addition, all leasing commissions paid to third parties for new leases or lease renewals are capitalized. We capitalize a portion of our indirect costs associated with our construction, development and leasing efforts. In assessing the amount of direct and indirect costs to be capitalized, allocations are made based on estimates of the actual amount of time spent in each activity. We do not capitalize any costs attributable to downtime or to unsuccessful projects.

We capitalize direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. In addition, we capitalize costs, including real estate taxes, insurance, and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We cease capitalization of all project costs on extended lease-up periods after the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy.

Construction in process and land held for development are included in real estate investments and are stated at cost. Real estate investments also include our equity interests in unconsolidated joint ventures that own and operate rental properties and hold land for development.

Properties held for rental are individually evaluated for impairment when conditions exist which may indicate that it is probable that the sum of expected future cash flows (on an undiscounted basis) from a rental property over its anticipated holding period is less than its historical net cost basis. Upon determination that a permanent impairment has occurred, a loss is recorded to reduce the net book value of that property to its fair market value. Properties to be disposed of are reported at the lower of net historical cost basis or the estimated fair market value, less the estimated costs to sell. Once a property is designated as held for disposal, no further depreciation expense is recorded.

We allocate the purchase price of acquired properties to net tangible and identified intangible assets based on their respective fair values, based on all pertinent information available and adjusted based on changes in that information in no event to exceed one year from the date of acquisition. The allocation to tangible assets (buildings, tenant improvements and land) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models similar to those used by independent appraisers. Factors considered by management include an estimate of carrying costs during the expected lease-up periods considering current market conditions, and costs to execute similar leases. The remaining purchase price is allocated among three categories of intangible assets consisting of the above or below market component of in-place leases, the value of in-place leases and the value of customer relationships.

The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term and (ii) management’s estimate of the amounts that would be paid using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in deferred leasing and other costs in the balance sheet and below market leases are included in other liabilities in the balance sheet; both are amortized to rental income over the remaining terms of the respective leases.

The total amount of intangible assets is further allocated to in-place lease values and to customer relationship values based upon management’s assessment of their respective values. These intangible assets are included in deferred leasing and other costs in the balance sheet and are depreciated over the remaining term of the existing lease, or the anticipated life of the customer relationship, as applicable.

Joint Ventures

We analyze our investments in joint ventures under Financial Accounting Standards Board (“FASB”) Interpretation No. 46(R), Consolidation of Variable Interest Entities, to determine if the joint venture is considered a variable interest entity and would require consolidation. To the extent that our joint ventures do not qualify as variable interest entities, we further assess under the guidelines of Emerging Issues Task Force (“EITF”) Issue No. 04-5, Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights (“EITF 04-5”); Statement of Position 78-9, Accounting for Investments in Real Estate Ventures (“SOP 78-9”); Accounting Research Bulletin No. 51, Consolidated Financial Statements; and Statement of Financial Accounting Standard (“SFAS”) No. 94, Consolidation of All Majority-Owned Subsidiaries, to determine if the venture should be consolidated. We have equity interests generally ranging from 10% to 50% in unconsolidated joint ventures that develop, own and operate rental properties and hold

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

land for development. We consolidate those joint ventures that are considered to be variable interest entities where we are the primary beneficiary. For non-variable interest entities, we consolidate those joint ventures that we control through majority ownership interests or where we are the managing member and our partner does not have substantive participating rights. Control is further demonstrated by the ability of the general partner to manage day-to-day operations, refinance debt and sell the assets of the joint venture without the consent of the limited partner and inability of the limited partner to replace the general partner. We use the equity method of accounting for those joint ventures where we do not have control over operating and financial polices. Under the equity method of accounting, our investment in each joint venture is included on our balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our balance sheet.

To the extent that we contribute assets to a joint venture, our investment in joint venture is recorded at our cost basis in the assets that were contributed to the joint venture. To the extent that our cost basis is different than the basis reflected at the joint venture level, the basis difference is amortized over the life of the related asset and included in our share of equity in net income of the joint venture. In accordance with the provisions of SOP 78-9 and SFAS No. 66, Accounting for Sales of Real Estate (“SFAS 66”), we recognize gains on the contribution or sale of real estate to joint ventures, relating solely to the outside partner’s interest, to the extent the economic substance of the transaction is a sale.

Cash Equivalents

Investments with an original maturity of three months or less are classified as cash equivalents.

Valuation of Receivables

We reserve the entire receivable balance, including straight-line rent, of any tenant with an amount outstanding over 90 days. Straight-line rent receivables for any tenant with long-term risk, regardless of the status of rent receivables, are reviewed and reserved as necessary.

Deferred Costs

Costs incurred in connection with obtaining financing are amortized to interest expense on the straight-line method, which approximates a constant spread over the term of the related loan. All direct and indirect costs, including estimated internal costs, associated with the leasing of real estate investments owned by us are capitalized and amortized over the term of the related lease. We include lease incentive costs, which are payments made on behalf of a tenant to sign a lease, in deferred leasing costs and amortize them on a straight-line basis over the respective lease terms as a reduction of rental revenues. We include as lease incentives amounts funded to construct tenant improvements owned by the tenant. Unamortized costs are charged to expense upon the early termination of the lease or upon early payment of the financing.

Minority Interest

Minority interests relate to the minority ownership interests in DRLP and interests in consolidated property partnerships that are not wholly-owned. Minority interest is subsequently adjusted for additional contributions, distributions to minority holders and the minority holders’ proportionate share of the net earnings or losses of each respective entity.

The value of each DRLP Unit that is redeemed is measured on the date of its redemption and the difference between the aggregate book value and the purchase price of the Units increases the recorded value of the Company’s net assets.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Revenues

Rental Operations

The timing of revenue recognition under an operating lease is determined based upon ownership of the tenant improvements. If we are the owner of the tenant improvements, revenue recognition commences after the improvements are completed and the tenant takes possession or control of the space. In contrast, if we determine that the tenant allowances we are funding are lease incentives, then we commence revenue recognition when possession or control of the space is turned over to the tenant. Rental income from leases with scheduled rental increases during their terms is recognized on a straight-line basis.

We record lease termination fees when a tenant has executed a definitive termination agreement with us and the payment of the termination fee is not subject to any conditions that must be met or waived before the fee is due to us.

Service Operations

Management fees are based on a percentage of rental receipts of properties managed and are recognized as the rental receipts are collected. Maintenance fees are based upon established hourly rates and are recognized as the services are performed. Construction management and development fees represent fee-based third-party contracts and are recognized as earned based on the terms of the contract, which approximates the percentage of completion method.

We recognize income on construction contracts where we serve as a general contractor on the percentage of completion method. Using this method, profits are recorded based on our estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reach a point where the final costs can be estimated with reasonable accuracy. The percentage of completion estimates are based on a comparison of the contract expenditures incurred to the estimated final costs. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined.

Unbilled receivables on construction contracts totaled $33.1 million and $32.4 million at December 31, 2007 and 2006, respectively.

Property Sales

Gains on sales of all properties are recognized in accordance with SFAS 66. The specific timing of the sale is measured against various criteria in SFAS 66 related to the terms of the transactions and any continuing involvement in the form of management or financial assistance from the seller associated with the properties. We make judgments based on the specific terms of each transaction as to the amount of the total profit from the transaction that we recognize considering factors such as continuing ownership interest we may have with the buyer (“partial sales”) and our level of future involvement with the property or the buyer that acquires the assets. If the sales criteria are not met, we defer gain recognition and account for the continued operations of the property by applying the finance, installment or cost recovery methods, as appropriate, until the full accrual sales criteria are met. Estimated future costs to be incurred after completion of each sale are included in the determination of the gain on sales.

Gains from sales of depreciated property are included in discontinued operations and the proceeds from the sale of these held-for-rental properties are classified in the investing activities section of the Consolidated Statements of Cash Flows.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Gains or losses from our sale of properties that were developed or repositioned with the intent to sell and not for long-term rental are classified as gain on sale of Service Operation properties in the Consolidated Statements of Operations. All activities and proceeds received from the development and sale of these buildings are classified in the operating activities section of the Consolidated Statements of Cash Flows.

Net Income Per Common Share

Basic net income per common share is computed by dividing net income available for common shareholders by the weighted average number of common shares outstanding for the period. Diluted net income per common share is computed by dividing the sum of net income available for common shareholders and the minority interest in earnings allocable to Units not owned by us, by the sum of the weighted average number of common shares outstanding and minority Units outstanding, including any dilutive potential common equivalents for the period.

The following table reconciles the components of basic and diluted net income per common share (in thousands):

	2007		2006		2005
Basic net income available for common shareholders	$	217,692	$	145,095	$	309,183
Minority interest in earnings of common unitholders		14,399		14,238		29,649
Diluted net income available for common shareholders	$	232,091	$	159,333	$	338,832
Weighted average number of common shares outstanding		139,255		134,883		141,508
Weighted average partnership Units outstanding		9,204		13,186		13,551
Dilutive shares for stock-based compensation plans (1)		1,155		1,324		818
Weighted average number of common shares and potential dilutive common equivalents		149,614		149,393		155,877

(1) Excludes the effect of outstanding stock options, as well as the Exchangeable Senior Notes (“Exchangeable Notes”) issued in 2006, that have an anti-dilutive effect on earnings per share for the periods presented.

A joint venture partner in one of our unconsolidated companies has the option to convert a portion of its ownership in the joint venture to our common shares. The effect of this option on earnings per share was anti-dilutive for the years ended December 31, 2007, 2006 and 2005.

Federal Income Taxes

We have elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code. To qualify as a REIT, we must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of our adjusted taxable income to our stockholders. Management intends to continue to adhere to these requirements and to maintain our REIT status. As a REIT, we are entitled to a tax deduction for some or all of the dividends we pay to shareholders. Accordingly, we generally will not be subject to federal income taxes as long as we distribute an amount equal to or in excess of our taxable income currently to shareholders. We are also generally subject to federal income taxes on any taxable income that is not currently distributed to its shareholders. If we fail to qualify as a REIT in any taxable year, we will be subject to federal income taxes and may not be able to qualify as a REIT for four subsequent taxable years.

REIT qualification reduces, but does not eliminate, the amount of state and local taxes we pay. In addition, our financial statements include the operations of taxable corporate subsidiaries that are not entitled to a dividends paid deduction and are subject to corporate federal, state and local income taxes. As a REIT, we may also be subject to certain federal excise taxes if we engage in certain types of transactions.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table reconciles our net income to taxable income before the dividends paid deduction for the years ended December 31, 2007, 2006 and 2005 (in thousands):

	2007			2006			2005
Net income	$	279,467		$	204,147		$	355,662
Book/tax differences		84,120			66,303			129,522
Taxable income before adjustments		363,587			270,450			485,184
Less: capital gains		(160,428	)		(78,246	)		(283,498	)
Adjusted taxable income subject to 90% dividend requirement	$	203,159		$	192,204		$	201,686

Our dividends paid deduction is summarized below (in thousands):

	2007			2006			2005
Cash dividends paid	$	324,085		$	311,615		$	455,606
Cash dividends declared and paid in subsequent year that apply to current year		48,126			—			29,578
Cash dividends declared and paid in current year that apply to previous year		(7,795	)		(21,782	)		—
Less: Capital gain distributions		(160,428	)		(78,246	)		(283,498	)
Less: Return of capital		—			(15,018	)		—
Total dividends paid deduction attributable to adjusted taxable income	$	203,988		$	196,569		$	201,686

A summary of the tax characterization of the dividends paid for the years ended December 31, 2007, 2006 and 2005 follows:

	2007		2006		2005
Common Shares
Ordinary income	63.1	%	64.2	%	44.2	%
Return of capital	—		5.3	%	—
Capital gains	36.9	%	30.5	%	55.8	%
	100.0	%	100.0	%	100.0	%
Preferred Shares
Ordinary income	63.1	%	73.7	%	44.2	%
Capital gains	36.9	%	26.3	%	55.8	%
	100.0	%	100.0	%	100.0	%

We recorded federal and state income taxes of $9.0 million, $6.8 million and $5.6 million for 2007, 2006 and 2005, respectively, which were primarily attributable to the earnings of our taxable REIT subsidiaries. We paid federal and state income taxes of $10.1 million, $4.3 million and $8.7 million for 2007, 2006 and 2005, respectively. The taxable REIT subsidiaries have no significant deferred income tax items.

Stock Based Compensation

For all issuances of stock-based awards prior to 2002, we applied the recognition and measurement provisions of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (“APB 25”), and related interpretations, in accounting for our stock-based compensation.

Accordingly, for stock options granted prior to 2002, no compensation expense is reflected in net income as all options granted had an exercise price equal to the market value of the underlying common shares on the date of the grant.

Effective January 1, 2002, we prospectively adopted the fair value recognition provisions of SFAS No. 123, Accounting for Stock-Based Compensation (“SFAS 123”), and applied SFAS 123 to all awards granted after January 1, 2002.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table illustrates the effect on net income and earnings per share if we had applied the fair value recognition provisions of SFAS 123 to all stock-based employee compensation for the year ended December 31, 2005 (in thousands, except per share data):

	2005
Net income available for common shareholders, as reported	$	309,183
Add: Stock-based employee compensation expense included in net income determined under fair value method		1,116
Deduct: Total stock-based compensation expense determined under fair value method for all awards		(1,285	)
Pro forma net income available for common shareholders	$	309,014
Basic net income per common share
As reported	$	2.19
Pro forma	$	2.18
Diluted net income per common share
As reported	$	2.17
Pro forma	$	2.17

Effective January 1, 2006, we adopted SFAS No. 123(R), Share Based Payment, (“SFAS 123(R)”), using the modified prospective application method. Under this method, as of January 1, 2006, we applied the provisions of SFAS 123(R) to new and modified awards, as well as to the nonvested portion of awards granted before the required effective date and outstanding at such time.

Derivative Financial Instruments

We periodically enter into certain interest rate protection agreements to effectively convert or cap floating rate debt to a fixed rate, and to hedge anticipated future financing transactions, both of which qualify for cash flow hedge accounting treatment. Net amounts paid or received under these agreements are recognized as an adjustment to the interest expense of the corresponding debt. We do not utilize derivative financial instruments for trading or speculative purposes.

If a derivative qualifies as a cash flow hedge, the change in fair value of the derivative is recognized in other comprehensive income to the extent the hedge is effective, while the ineffective portion of the derivative’s change in fair value is recognized in earnings. Gains and losses on our interest rate protection agreements are subsequently included in earnings as an adjustment to interest expense in the same periods in which the related interest payments being hedged are recognized in earnings.

We estimate the fair value of derivative instruments using standard market conventions and techniques such as discounted cash flow analysis, option pricing models and termination cost at each balance sheet date. For all hedging relationships, we formally document the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged, how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively, and a description of the method of measuring ineffectiveness.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Use of Estimates

The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

(3) Significant Acquisitions and Dispositions

Acquisitions

We acquired total income producing real estate related assets of $219.9 million, $948.4 million and $295.6 million in 2007, 2006 and 2005, respectively.

In December 2007, in order to further establish our property positions around strategic port locations, we purchased a portfolio of five industrial buildings, in Seattle, Virginia and Houston, as well as approximately 161 acres of undeveloped land and a 12-acre container storage facility in Houston. The total price was $89.7 million and was financed in part through assumption of secured debt that had a fair value of $34.3 million. Of the total purchase price, $66.1 million was allocated to in-service real estate assets, $20.0 million was allocated to undeveloped land and the container storage facility, $3.3 million was allocated to lease related intangible assets, and the remaining amount was allocated to acquired working capital related assets and liabilities. This allocation of purchase price based on the fair value of assets acquired is preliminary. The results of operations for the acquired properties since the date of acquisition have been included in continuing rental operations in our consolidated financial statements.

In February 2007, we completed the acquisition of Bremner Healthcare Real Estate (“Bremner”), a national health care development and management firm. The primary reason for the acquisition was to expand our development capabilities within the health care real estate market. The initial consideration paid to the sellers totaled $47.1 million, and the sellers may be eligible for further contingent payments over the next three years. Approximately $39.0 million of the total purchase price was allocated to goodwill, which is attributable to the value of Bremner’s overall development capabilities and its in-place workforce. The results of operations for Bremner since the date of acquisition have been included in continuing operations in our consolidated financial statements.

In February 2006, we acquired the majority of a Washington, D.C. metropolitan area portfolio of suburban office and light industrial properties (the “Mark Winkler Portfolio”). The assets acquired for a purchase price of approximately $867.6 million are comprised of 32 in-service properties with approximately 2.9 million square feet for rental, 166 acres of undeveloped land, as well as certain related assets of the Mark Winkler Company, a real estate management company. The acquisition was financed primarily through assumed mortgage loans and new borrowings.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The assets acquired and liabilities assumed were recorded at their estimated fair value at the date of acquisition, as summarized below (in thousands):

Operating rental properties	$	602,011
Land held for development		154,300
Total real estate investments		756,311
Other assets		10,478
Lease related intangible assets		86,047
Goodwill		14,722
Total assets acquired		867,558
Debt assumed		(148,527	)
Other liabilities assumed		(5,829	)
Purchase price, net of assumed liabilities	$	713,202

In December 2006, we contributed 23 of these in-service properties acquired from the Mark Winkler Portfolio with a basis of $381.6 million representing real estate investments and acquired lease related intangible assets to two new unconsolidated subsidiaries. Of the remaining nine in-service properties, eight were contributed to these two unconsolidated subsidiaries in 2007 and one remains in continuing operations as of December 31, 2007. The eight properties contributed in 2007 had a basis of $298.4 million representing real estate investments and acquired lease related intangible assets, and debt secured by these properties of $146.4 million was also assumed by the unconsolidated subsidiaries.

In the third quarter of 2006, we finalized the purchase of a portfolio of industrial real estate properties in Savannah, Georgia. We completed a majority of the purchase in January 2006. The assets acquired for a purchase price of approximately $196.2 million are comprised of 18 buildings with approximately 5.1 million square feet for rental as well as over 60 acres of undeveloped land. The acquisition was financed in part through assumed mortgage loans. The results of operations for the acquired properties since the date of acquisition have been included in continuing rental operations in our consolidated financial statements.

The primary acquisition in 2005 was that of a suburban office portfolio in our Chicago market for a purchase price of approximately $257.6 million. The results of operations for the six properties in this portfolio have been included in continuing rental operations in our consolidated financial statements since the date of acquisition.

Dispositions

In March 2007, as part of our capital recycling program, we sold a portfolio of eight suburban office properties totaling 894,000 square feet in the Cleveland market. The sales price totaled $140.4 million, of which we received net proceeds of $139.3 million. We also sold a portfolio of twelve flex and light industrial properties in July 2007, totaling 865,000 square feet in the St. Louis market, for a sales price of $65.0 million, of which we received net proceeds of $64.2 million.

On September 29, 2005, we completed the sale of a portfolio of 212 real estate properties, consisting of approximately 14.1 million square feet of primarily light distribution and service center properties and approximately 50 acres of undeveloped land (the “Industrial Portfolio Sale”). The sales price totaled $983 million, of which we received net proceeds of $955.0 million after the settlement of certain liabilities and transaction costs. Portions of the proceeds were used to pay down $423.0 million outstanding on our unsecured line of credit and the entire outstanding balance on our $400.0 million term loan. The 2005 operations and gain associated with the properties in the Industrial Portfolio Sale have been reclassified to discontinued operations. As a result of the taxable income generated by the sale, a one-time special cash dividend of $1.05 per share was paid to our common shareholders in the fourth quarter of 2005.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(4) Related Party Transactions

We provide property management, leasing, construction and other tenant related services to unconsolidated companies in which we have equity interests. For the years ended December 31, 2007, 2006 and 2005, respectively, we received from these unconsolidated companies management fees of $7.1 million, $4.4 million and $4.8 million, leasing fees of $4.2 million, $2.9 million and $4.3 million and construction and development fees of $13.1 million, $19.1 million and $2.0 million. We recorded these fees based on contractual terms that approximate market rates for these types of services, and we have eliminated our ownership percentages of these fees in the consolidated financial statements.

(5) Investments in Unconsolidated Companies

We have equity interests generally ranging from 10% to 50% in unconsolidated joint ventures that develop, own and operate rental properties and hold land for development.

Combined summarized financial information for the unconsolidated companies as of December 31, 2007 and 2006, and for the years ended December 31, 2007, 2006 and 2005, are as follows (in thousands):

	2007		2006		2005
Rental revenue	$	215,855	$	157,186	$	163,447
Net income	$	41,725	$	65,985	$	57,561
Land, buildings and tenant improvements, net	$	1,771,342	$	1,403,009
Construction in progress		105,796		107,961
Land held for development		114,253		91,280
Other assets		194,616		148,580
	$	2,186,007	$	1,750,830
Indebtedness	$	989,120	$	417,970
Other liabilities		224,468		170,168
		1,213,588		588,138
Owners' equity		972,419		1,162,692
	$	2,186,007	$	1,750,830

Our share of the scheduled payments of long term debt for the unconsolidated joint ventures for each of the next five years and thereafter as of December 31, 2007 are as follows (in thousands):

Year	Future Repayments
2008	$	2,190
2009		38,869
2010		146,885
2011		9,938
2012		44,778
Thereafter		139,361
	$	382,021

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(6) Discontinued Operations and Assets Held for Sale

The amounts described in the following paragraphs and tables have been reclassified from the previously filed consolidated financial statements to reflect the reclassification of the operations of certain properties to or from discontinued operations. During the period from January 1, 2008 through September 30, 2008 we sold six properties owned by us and not classified as assets held for sale as of December 31, 2007. The results of operations for such properties have been reclassified as income from discontinued operations for the years ended December 31, 2007, 2006 and 2005 in the consolidated statements of operations. Additionally, there were 14 properties that we had classified as held for sale as of December 31, 2007, and whose results of operations were included as income from discontinued operations for the years ended December 31, 2007, 2006 and 2005. The 14 properties were reclassified to continuing operations during the nine months ended September 30, 2008 as the result of no longer meeting the criteria for held for sale classification. The effect of these reclassifications resulted in a decrease to income from discontinued operations in the year ended December 31, 2007 of $2.6 million. For the years ended December 31, 2006 and 2005, these reclassifications resulted in an increase of $50,000 and a decrease of $1.9 million, respectively. There was no effect on net income available for common shareholders.

After the effects of the above reclassification, we have classified the operations of 294 buildings as discontinued operations as of December 31, 2007. These 294 buildings consist of 256 industrial, 37 office and one retail properties. Of these properties, 32 were sold during 2007, 21 properties were sold during 2006, 234 properties were sold during 2005, 15 operating properties are classified as held-for-sale at December 31, 2007 (of which 14 properties were reclassified to continuing operations during the nine months ended September 30, 2008) and six additional properties were sold during 2008.

The following table illustrates operations of the buildings reflected in discontinued operations for the years ended December 31 (in thousands):

	2007			2006			2005
Revenues	$	24,983		$	63,577		$	150,176
Expenses:
Operating		9,959			21,839			50,450
Interest		6,408			13,251			34,752
Depreciation and Amortization		4,178			16,636			46,469
General and Administrative		36			104			238
Operating Income		4,402			11,747			18,267
Minority interest expense		(273	)		(1,046	)		(1,597	)
Income from discontinued operations, before gain on sales		4,129			10,701			16,670
Gain on sale of property, net of impairment adjustments		121,072			46,254			223,858
Minority interest expense – gain on sales		(7,507	)		(4,121	)		(19,565	)
Gain on sale of property, net of impairment adjustments and minority interest		113,565			42,133			204,293
Income from discontinued operations	$	117,694		$	52,834		$	220,963

At December 31, 2007, we classified 15 properties as held-for-sale and included in discontinued operations. Additionally, we have classified nine in-service properties as held-for-sale, but have included the results of operations of these properties in continuing operations, either based on our present intention to sell the majority of our ownership interest in the properties to entities in which we will retain a minority equity ownership interest or because the results of operations for the properties are immaterial. The following table illustrates aggregate balance sheet information of the aforementioned 15 properties included in discontinued operations, as well as the nine held-for-sale properties whose results are included in continuing operations at December 31, 2007 (in thousands):

	Properties Included in Discontinued Operations		Properties Included in Continuing Operations		Total Held-for-Sale Properties
Balance Sheet:
Real estate investments, net	$	132,194	$	122,556	$	254,750
Other assets		10,152		8,689		18,841
Total assets held-for-sale	$	142,346	$	131,245	$	273,591
Accrued expenses	$	3,586	$	333	$	3,919
Other liabilities		1,011		4,024		5,035
Total liabilities held-for-sale	$	4,597	$	4,357	$	8,954

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We allocate interest expense to discontinued operations and have included such interest expense in computing net income from discontinued operations. Interest expense allocable to discontinued operations includes interest on any debt on secured properties included in discontinued operations and an allocable share of our consolidated unsecured interest expense for unencumbered properties. The allocation of unsecured interest expense to discontinued operations was based upon the gross book value of the discontinued operations unencumbered population as it related to our entire unencumbered population.

We recorded impairment adjustments on depreciable properties of $266,000 and $3.7 million in 2006 and 2005, respectively. No impairment adjustments were recorded on depreciable properties in 2007.

(7) Indebtedness

Indebtedness at December 31, 2007 and 2006 consists of the following (in thousands):

	2007		2006
Fixed rate secured debt, weighted average interest rate of 6.11% at December 31, 2007, and 6.21% at December 31, 2006, maturity dates ranging from 2008 to 2026	$	515,423	$	652,886
Variable rate secured debt, weighted average interest rate of 3.35% at December 31, 2007, and 3.79% at December 31, 2006, maturity dates ranging from 2014 to 2025		8,970		9,615
Fixed rate unsecured debt, weighted average interest rate of 5.73% at December 31, 2007, and 5.67% at December 31, 2006, maturity dates ranging from 2008 to 2028		3,246,000		3,125,157
Unsecured lines of credit, weighted average interest rate of 5.52% at December 31, 2007, and 5.82% at December 31, 2006 maturity dates ranging from 2010 to 2011		546,067		317,000
Variable rate unsecured debt, market rate of 6.2% at December 31, 2006		—		4,496
	$	4,316,460	$	4,109,154

The fair value of our indebtedness as of December 31, 2007, was $4.2 billion. This fair value amount was calculated using current market rates and spreads available to us on debt instruments with similar terms and maturities.

As of December 31, 2007, the $524.4 million of secured debt was collateralized by rental properties with a carrying value of $723.0 million and by letters of credit in the amount of $9.1 million.

We had an unsecured line of credit available at December 31, 2007. During 2007, the borrowing capacity on this line of credit was increased from $1.0 billion to $1.3 billion. Additionally, in July 2007, one of our consolidated majority owned subsidiaries entered into a lending agreement that included an additional unsecured line of credit. Our unsecured lines of credit as of December 31, 2007 are described as follows (in thousands):

Description	Borrowing Capacity		Maturity Date	Outstanding at December 31, 2007
Unsecured Line of Credit	$	1,300,000	January 2010	$	543,000
Unsecured Line of Credit – Consolidated Subsidiary	$	30,000	July 2011	$	3,067

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We use our line of credit to fund development activities, acquire additional rental properties and provide working capital. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line, at rates lower than the stated interest rate, subject to certain restrictions. The interest rate on the amounts outstanding on the unsecured line of credit as of December 31, 2007 was LIBOR plus .525%, which for borrowings outstanding at December 31, 2007 ranged from 5.355% to 5.775%. Our line of credit also contains various financial covenants that require us to meet financial ratios and defined levels of performance, including those related to variable rate indebtedness, consolidated net worth and debt-to-market capitalization. As of December 31, 2007, we were in compliance with all covenants under our line of credit.

The consolidated subsidiary’s unsecured line of credit allows for borrowings up to $30.0 million at a rate of LIBOR plus .85% (equal to 5.73% for outstanding borrowings as of December 31, 2007). The unsecured line of credit is used to fund development activities within the consolidated subsidiary. The consolidated subsidiary’s unsecured line of credit matures in July 2011 with a 12-month extension option.

We took the following actions during the year ended December 31, 2007, relevant to our indebtedness:

• In August 2007, we repaid $100.0 million of 7.375% senior unsecured notes on the scheduled maturity date.

• In September 2007, we issued $300.0 million of 6.50% senior unsecured notes due in January 2018. This issuance was hedged with a forward starting interest rate swap that was settled and reduced the effective interest rate to 6.16%. The net proceeds from that issuance were used to partially pay down the outstanding balance on our unsecured line of credit.

• In November 2007, we repaid $100.0 million of 3.5% senior unsecured notes on the scheduled maturity date.

In November 2006, we issued $575.0 million of 3.75% Exchangeable Senior Notes (“Exchangeable Notes”), which will pay interest semiannually at a rate of 3.75% per annum and mature in December 2011.

The Exchangeable Notes can be exchanged for shares of our common stock upon the occurrence of certain events as well as at any time beginning on August 1, 2011 and ending on the second business day prior to the maturity date. The Exchangeable Notes had an initial exchange rate of approximately 20.4298 common shares per $1,000 principal amount of the notes, representing an exchange price of approximately $48.95 per share of Duke’s common stock and an initial exchange premium of approximately 20.0% based on the price of $40.79 per share of our common stock on the date of the original issuance. The initial exchange rate is subject to adjustment under certain circumstances including increases in our rate of dividends. Upon exchange the holders of the notes would receive (i) cash equal to the principal amount of the note and (ii) to the extent the conversion value exceeds the principal amount of the note, either cash or shares of common stock at our option.

Concurrent with the issuance of the Exchangeable Notes, we purchased a capped call option on our common stock in a private transaction. This capped call option allows us to buy our common shares, up to a maximum of approximately 11.7 million shares, from counter parties equal to the amounts of common stock and/or cash related to the excess conversion value we would pay to the holders of the Exchangeable Notes upon conversion. The capped call option will terminate upon the earlier of the maturity date of the related Exchangeable Notes or the first day all of the related Exchangeable Notes are no longer outstanding due to conversion or otherwise. The capped call option, which cost $27.0 million, was recorded as a reduction of shareholders’ equity and effectively increased the conversion price to 40% above the stock price on the issuance date. The fair value of the capped call option was $1.9 million at December 31, 2007.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

At December 31, 2007, the scheduled amortization and maturities of all indebtedness for the next five years and thereafter were as follows (in thousands):

Year	Amount
2008	$	279,928
2009		285,578
2010		728,253
2011		1,046,394
2012		209,233
Thereafter		1,767,074
	$	4,316,460

The amount of interest paid in 2007, 2006 and 2005 was $225.8 million, $198.1 million and $151.3 million, respectively. The amount of interest capitalized in 2007, 2006 and 2005 was $59.2 million, $36.3 million and $9.5 million, respectively.

(8) Segment Reporting

We are engaged in three reportable operating segments, the first two of which consist of the ownership and rental of office and industrial real estate investments. The operations of our office and industrial properties, along with our healthcare properties (our healthcare properties, and other property types which are not significant are not separately presented as a reportable segment), are collectively referred to as “Rental Operations”. The third reportable segment consists of our build-to-suit for sale operations and providing various real estate services such as property management, maintenance, leasing, development and construction management to third-party property owners and joint ventures (“Service Operations”). Our reportable segments offer different products or services and are managed separately because each segment requires different operating strategies and management expertise.

The assets of the Service Operations business segment generally include properties under development. During the period between the completion of development, rehabilitation or repositioning of a Service Operations property and the date the property is contributed to a property fund or sold to a third party, the property and its associated rental income and rental expenses are included in the applicable Rental Operations segment because the primary activity associated with the Service Operations property during that period is rental activities. Upon contribution or sale, the resulting gain or loss is part of the income of the Service Operations business segment.

Other revenue consists mainly of equity in earnings of unconsolidated companies. Segment FFO information (FFO is defined below) is calculated by subtracting operating expenses attributable to the applicable segment from segment revenues. Non-segment assets consist of corporate assets including cash, deferred financing costs and investments in unconsolidated companies. Interest expense and other non-property specific revenues and expenses are not allocated to individual segments in determining our performance measure.

We assess and measure segment operating results based upon an industry performance measure referred to as Funds From Operations (“FFO”), which management believes is a useful indicator of our operating performance. 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 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.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

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.

The following table shows (i) the revenues and FFO for each of the reportable segments and (ii) a reconciliation of net income available for common shareholders to the calculation of FFO for the years ended December 31, 2007, 2006 and 2005 (in thousands):

	2007			2006			2005
Revenues
Rental Operations:
Office	$	564,637		$	549,762		$	460,531
Industrial		218,055			193,675			147,814
Non-reportable Rental Operations segments		20,952			5,775			4,449
Service Operations		99,358			90,125			81,941
Total Segment Revenues		903,002			839,337			694,735
Other Revenue		36,359			46,738			34,876
Consolidated Revenue from continuing operations		939,361			886,075			729,611
Discontinued Operations		24,983			63,577			150,176
Consolidated Revenue	$	964,344		$	949,652		$	879,787
Funds From Operations
Rental Operations:
Office	$	349,297		$	343,260		$	284,497
Industrial		166,828			150,122			111,953
Non-reportable Rental Operations segments		14,382			4,372			3,335
Services Operations		52,034			53,196			44,278
Total Segment FFO		582,541			550,950			444,063
Non-Segment FFO:
Interest expense		(172,616	)		(173,255	)		(108,518	)
Interest and other income, net		12,135			10,450			4,637
General and administrative expense		(37,691	)		(35,812	)		(30,981	)
Gain on land sales, net of impairment		33,422			7,791			14,201
Other non-segment income (expense)		(1,923	)		159			(3,876	)
Minority interest		(9,964	)		(9,786	)		(10,331	)
Minority interest share of FFO adjustments		(10,983	)		(18,858	)		(3,065	)
Joint venture FFO		50,085			37,774			37,964
Dividends on preferred shares		(58,292	)		(56,419	)		(46,479	)
Adjustment for redemption of preferred shares		(3,483	)		(2,633	)		—
Discontinued operations, net of minority interest		801			27,647			43,574
Consolidated basic FFO		384,032			338,008			341,189
Depreciation and amortization on continuing operations		(273,513	)		(237,632	)		(207,701	)
Depreciation and amortization on discontinued operations		(4,178	)		(16,636	)		(46,469	)
Company’s share of joint venture adjustments		(26,948	)		(18,394	)		(19,510	)
Earnings from depreciated property sales on discontinued operations		121,072			42,089			227,513
Earnings from depreciated property sales – share of joint venture		6,244			18,802			11,096
Minority interest share of FFO adjustments		10,983			18,858			3,065
Net income available for common shareholders	$	217,692		$	145,095		$	309,183

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The assets for each of the reportable segments as of December 31, 2007 and 2006 are as follows (in thousands):

	December 31, 2007		December 31, 2006
Assets
Rental Operations:
Office	$	3,705,928	$	4,061,806
Industrial		2,313,507		1,942,992
Non-reportable Rental Operations segments		312,246		132,449
Service Operations		476,033		301,886
Total Segment Assets		6,807,714		6,439,133
Non-Segment Assets		854,267		799,462
Consolidated Assets	$	7,661,981	$	7,238,595

In addition to revenues and FFO, we also review our recurring capital expenditures in measuring the performance of our individual Rental Operations segments. These recurring capital expenditures consist of tenant improvements, leasing commissions and building improvements. We review these expenditures to determine the costs associated with re-leasing vacant space and maintaining the condition of our properties. Our recurring capital expenditures by segment are summarized as follows for the years ended December 31, 2007, 2006 and 2005 (in thousands):

	2007		2006		2005
Recurring Capital Expenditures
Office	$	68,427	$	66,449	$	66,890
Industrial		16,454		16,210		42,083
Non-reportable Rental Operations segments		1,055		341		67
Total	$	85,936	$	83,000	$	109,040

(9) Leasing Activity

Future minimum rents due to us under non-cancelable operating leases at December 31, 2007 are as follows (in thousands):

Year	Amount
2008	$	645,005
2009		634,921
2010		573,033
2011		482,761
2012		409,167
Thereafter		1,364,161
	$	4,109,048

In addition to minimum rents, certain leases require reimbursements of specified operating expenses that amounted to $177.2 million, $161.7 million and $151.4 million for the years ended December 31, 2007, 2006 and 2005, respectively.

(10) Employee Benefit Plans

We maintain a 401(k) plan for full-time employees. We make matching contributions up to an amount equal to three percent of the employee’s salary and may also make annual discretionary contributions. The total expense recognized for this plan was $3.7 million, $3.9 million and $3.3 million for the years ended December 31, 2007, 2006 and 2005, respectively.

We make contributions to a contributory health and welfare plan as necessary to fund claims not covered by employee contributions. The total expense we recognized related to this plan was $9.3 million, $9.4 million and $8.1 million for 2007, 2006 and 2005, respectively. These expense amounts include estimates based upon the historical experience of claims incurred but not reported as of year-end.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(11) Shareholders’ Equity

We periodically access the public equity markets to fund the development and acquisition of additional rental properties or to pay down debt. The proceeds of these offerings are contributed to DRLP in exchange for an additional interest in DRLP. In October 2007, we redeemed all of the outstanding shares of our 7.99% Series B Cumulative Redeemable Preferred Stock at a liquidation amount of $132.3 million. Offering costs of $3.5 million were charged against net income available to common shareholders in conjunction with the redemption of these shares.

The following series of preferred shares were outstanding as of December 31, 2007 (in thousands, except percentage data):

Description	Shares Outstanding	Dividend Rate		Redemption Date	Liquidation Preference
Series J Preferred	400	6.625	%	August 29, 2008	$	100,000
Series K Preferred	600	6.500	%	February 13, 2009	$	150,000
Series L Preferred	800	6.600	%	November 30, 2009	$	200,000
Series M Preferred	736	6.950	%	January 31, 2011	$	184,000
Series N Preferred	440	7.250	%	June 30, 2011	$	110,000

All series of preferred shares require cumulative distributions and have no stated maturity date (although we may redeem all such preferred shares on or following their optional redemption dates at our option, in whole or in part).

In October 2007, we issued 7.0 million shares of our common stock for net proceeds of $232.7 million.

Pursuant to the $750.0 million share repurchase plan that was approved by our board of directors, we paid approximately $91.9 million for the redemption of 2,266,684 of our common shares at an average price of $40.55 per share during the year ended December 31, 2006. From time to time, management may repurchase additional common shares pursuant to our share repurchase plan.

(12) Stock Based Compensation

We are authorized to issue up to 9,949,314 shares of our common stock under our stock based employee and non-employee compensation plans.

Cash flows resulting from tax deductions in excess of recognized compensation cost from the exercise of stock options (excess tax benefits) were not significant in any period presented.

Fixed Stock Option Plans

We had options outstanding under six fixed stock option plans as of December 31, 2007. Additional grants may be made under one of those plans. Stock option awards granted under our stock based employee and non-employee compensation plans generally vest over five years at 20% per year and have contractual lives of ten years. The exercise price for stock option grants is set at the fair value of our common stock on the day of grant.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table summarizes transactions under our stock option plans as of December 31, 2007:

			2007
	Shares		Weighted Average Exercise Price		Weighted Average Remaining Life	Aggregate Intrinsic Value (1) (in Millions)
Outstanding, beginning of year	3,848,925		$	27.85
Granted	2,457,608		$	32.23
Exercised	(371,628	)	$	23.02
Forfeited	(83,949	)	$	38.50
Outstanding, end of year	5,850,956		$	29.84	7.3	$	6.6
Options exercisable, end of year	2,166,435		$	25.90	4.5	$	4.8

(1) The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the closing stock price of $26.08 at December 31, 2007, which would have been received by the option holders had all option holders exercised their options as of that date. This amount changes continuously based on the market prices of the stock.

Options granted in the years ended December 31, 2007, 2006 and 2005, respectively, had a weighted average fair value per option of $2.89, $3.60 and $3.04. As of December 31, 2007, there was $6.7 million of total unrecognized compensation expense related to stock options granted under the plans, which is expected to be recognized over a weighted average remaining period of 3.91 years. The total intrinsic value of options exercised during the years ended December 31, 2007, 2006 and 2005 respectively, was $5.6 million, $11.3 million and $3.4 million. Compensation expense recognized for fixed stock option plans was $2.3 million, $1.7 million and $1.1 million for the years ended December 31, 2007, 2006 and 2005, respectively. The fair value of options vested during the years ended December 31, 2007, 2006 and 2005 was $1.6 million, $1.6 million and $1.2 million, respectively.

The fair values of the options were determined using the Black-Scholes option-pricing model with the following assumptions:

	2007	2006	2005
Dividend yield	5.75% - 6.50%	6.25%	6.25%
Volatility	18.0%	20.0%	20.0%
Risk-free interest rate	3.63% - 4.78%	4.5%	3.8%
Expected life	5 years	6 years	6 years

The risk free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock options. The dividend yield assumption is based on the history of and our present expectation of future dividend payouts. Our computation of expected volatility for the valuation of stock options granted in the years ended December 31, 2007, 2006 and 2005 is based on historic, and our present expectation of future volatility over a period of time equal to the expected term. The expected life of employee stock options represents the weighted average period the stock options are expected to remain outstanding.

Performance Share Plan

Performance shares were granted under the 2000 Performance Share Plan, with each performance share economically equivalent to one share of our common stock. The performance shares vest over a five-year period with the vesting percentage for a year dependent upon our attainment of certain predefined levels of earnings growth for such year. The performance shares have a contractual life of five years. In April 2006, the 2000 Performance Share Plan was amended to provide that awards would be settled in shares of common stock rather than cash. The fair value of existing awards was fixed at the date of the amendment and the fair value of subsequent awards will be fixed at the fair value of our common stock at the date of grant.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table summarizes transactions for our performance shares for the year ended December 31, 2007:

2000 Performance Share Plan	Vested		Unvested		Total
Performance Share Plan units at December 31, 2006	103,255		69,768		173,023
Granted	—		—		—
Vested	29,791		(29,791	)	—
Forfeited	—		—		—
Dividend reinvestments	9,264		—		9,264
Disbursements	(4,111	)	—		(4,111	)
Total Performance Share Plan units outstanding at December 31, 2007	138,199		39,977		178,176

Compensation expense recognized for Performance Share Plan units was $1.3 million, $1.2 million and $1.3 million for 2007, 2006 and 2005, respectively. The total vest date fair value of shares vesting during the year ended December 31, 2007 was $1.1 million.

Shareholder Value Plan Awards

Our 2005 Shareholder Value Plan (“2005 SVP Plan”), a sub-plan of our 2005 Long-Term Incentive Plan, was approved by our shareholders in April 2005. Upon vesting, payout of the 2005 Shareholder Value Plan awards will be made in shares of our common stock. Under the 2005 SVP Plan, shareholder value awards fully vest three years after the date of grant. The number of common shares to be issued may range from 0%-300% of the target shares awarded and will be based upon our total shareholder return for such three-year period as compared to the S&P 500 Index and the NAREIT Real Estate 50 Index. Each index is weighted at 50%.

Awards made under the 2005 SVP Plan are measured at fair value, which is determined using a Monte Carlo simulation model that was developed to accommodate the unique features of the 2005 SVP Plan. Compensation cost recognized under the 2005 SVP Plan was $1.5 million, $879,000 and $438,000 for the years ended December 31, 2007, 2006 and 2005, respectively.

The following table summarizes transactions for our awards under the 2005 SVP Plan for 2007:

2005 Shareholder Value Plan Awards	Number of SVP Units		Weighted Average Grant Date Fair Value
SVP awards at December 31, 2006	159,634		$	32.63
Granted	83,580		$	46.49
Vested	(67,845	)	$	30.64
Forfeited	(11,189	)	$	37.19
SVP awards at December 31, 2007	164,180		$	40.20

As of December 31, 2007, there was $2.2 million of total unrecognized compensation expense related to nonvested SVP Plan awards granted under the 2005 SVP Plan, which will be recognized over a weighted average period of 1.73 years. All 2005 SVP Plan awards have a contractual life of three years.

Restricted Stock Units

Under our 2005 Long-Term Incentive Plan and our 2005 Non-Employee Directors Compensation Plan approved by our shareholders in April 2005, restricted stock units (“RSUs”) may be granted to non-employee directors, executive officers and selected management employees. An RSU is economically equivalent to one share of our common stock. RSUs granted prior to January 1, 2006 vest 20% per year over five years, have contractual lives of five years and are payable in shares of our common stock. RSUs granted to existing non-employee directors subsequent to January 1, 2006 vest 100% over one year, and have contractual lives of one year. We recognize the value of the granted RSUs over this vesting period as expense.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The following table summarizes transactions for our RSUs, excluding dividend equivalents, for 2007:

Restricted Stock Units	Number of RSUs		Weighted Average Grant Date Fair Value
RSUs at December 31, 2006	235,693		$	33.07
Granted	96,113		$	46.67
Vested	(62,353	)	$	33.14
Forfeited	(8,355	)	$	38.99
RSUs at December 31, 2007	261,098		$	37.87

Compensation cost recognized for RSUs totaled $3.0 million, $2.1 million and $478,000 for the years ended December 31, 2007, 2006 and 2005, respectively.

As of December 31, 2007, there was $5.9 million of total unrecognized compensation expense related to nonvested RSUs granted under the Plan, which is expected to be recognized over a weighted average period of 3.9 years.

(13) Financial Instruments

We are exposed to capital market risk, such as changes in interest rates. In order to reduce the volatility relating to interest rate risk, we may enter into interest rate hedging arrangements from time to time. We do not utilize derivative financial instruments for trading or speculative purposes.

In November 2007, we entered into $300.0 million of cash flow hedges through forward-starting interest rate swaps to hedge interest rates on $300.0 million of anticipated debt offerings in 2008. The swaps qualify for hedge accounting, with any changes in fair value recorded in Other Comprehensive Income (“OCI”). At December 31, 2007, the fair value of these swaps was approximately $6.2 million in a liability position as the effective rate on the swaps was higher than current interest rates at December 31, 2007.

In July 2007, we entered into a $21.0 million cash flow hedge though an interest rate swap to fix the rate on $21.0 million of floating rate term debt, issued by one of our consolidated majority owned subsidiaries, which matures in July 2011. The swap qualifies for hedge accounting, with any changes in fair value recorded in OCI. At December 31, 2007, the fair value of this swap was approximately $1.1 million in a liability position.

In August 2005, we entered into $300.0 million of cash flow hedges through forward-starting interest rate swaps to hedge interest rates on $300.0 million of anticipated debt offerings in 2007. The swaps qualified for hedge accounting, with any changes in fair value recorded in OCI. In conjunction with the September 2007 issuance of $300.0 million of senior unsecured notes, we terminated these cash flow hedges as designated. The settlement amount received of $10.7 million will be recognized to earnings through a reduction of interest expense over the term of the hedged cash flows. The ineffective portion of the hedge was insignificant.

In March 2005, we entered into $300.0 million of cash flow hedges through forward-starting interest rate swaps to hedge interest rates on $300.0 million of anticipated debt offerings in 2006. The swaps qualified for hedge accounting, with any changes in fair value recorded in OCI. In March 2006, we issued $150.0 million of 5.50% senior unsecured notes due 2016 and terminated a corresponding amount of the cash flow hedges designated for this transaction. The settlement amount paid of approximately $800,000 will be recognized to earnings through interest expense ratably over the life of the senior unsecured notes and the ineffective portion of the hedge was insignificant. In August 2006, we issued $450.0 million of 5.95% senior unsecured notes due 2017 and $250.0 million of 5.63% senior unsecured notes due 2011 and terminated the remaining $150.0 million of cash flow hedges. The settlement amount received of approximately $1.6 million will be recognized to earnings through a reduction of interest expense ratably over the lives of the senior unsecured notes. The ineffective portion of the hedge was insignificant.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

The effectiveness of our hedges will be evaluated throughout their lives using the hypothetical derivative method under which the change in fair value of the actual swap designated as the hedging instrument is compared to the change in fair value of a hypothetical swap.

(14) Recent Accounting Pronouncements

We adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (“FIN 48”), on January 1, 2007. The adoption of FIN 48 resulted in an additional tax exposure of approximately $1.7 million recorded as an adjustment to the opening balance of Distributions in Excess of Net Income. As of December 31, 2007, tax returns for the calendar years 2004 through 2007 remain subject to examination by the Internal Revenue Service (“IRS”) and various state and local tax jurisdictions. Our uncertain tax positions are immaterial both individually and in the aggregate primarily due to our tax status as a REIT.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair value in accordance with GAAP and expands disclosure about fair value measurements. SFAS 157 is effective for fiscal years beginning after November 15, 2007. We do not expect SFAS 157 to have a material effect when adopted.

In January 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (“SFAS 159”). SFAS 159 provides a “Fair Value Option” under which a company may irrevocably elect fair value as the initial and subsequent measurement attribute for certain financial assets and liabilities. This Fair Value Option will be available on a contract-by-contract basis with changes in fair value recognized in earnings as those changes occur. The effective date for SFAS 159 is the beginning of each reporting entity’s first fiscal year end that begins after November 15, 2007. We will not elect the Fair Value Option for any of our financial assets or liabilities.

In December 2007, the FASB issued SFAS No. 141R, Business Combinations (“SFAS 141R”) and SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements – an amendment to ARB No. 51 (“SFAS 160”). SFAS 141R and SFAS 160 require most identifiable assets, liabilities, noncontrolling interests and goodwill acquired in a business combination to be recorded at “full fair value” and require noncontrolling interests (previously referred to as minority interests) to be reported as a component of equity, which changes the accounting for transactions with noncontrolling interest holders. Both Statements are effective for periods beginning on or after December 15, 2008, and earlier adoption is prohibited. SFAS 141R will be applied to business combinations after the effective date. SFAS 160 will be applied prospectively to all noncontrolling interests, including any that arose before the effective date. We are currently evaluating the impact of adopting SFAS 141R and SFAS 160 on our results of operations and financial position.

(15) Commitments and Contingencies

We have guaranteed the repayment of $79.3 million of economic development bonds issued by various municipalities in connection with certain commercial developments. We will be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service. Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.

DUKE REALTY CORPORATION AND SUBSIDIARIES

Notes to Consolidated Financial Statements

We also have guaranteed the repayment of secured and unsecured loans of seven of our unconsolidated subsidiaries. At December 31, 2007, the outstanding balance on these loans was approximately $219.8 million. Additionally, we guaranteed $29.0 million of secured indebtedness related to a property sold to a third party in 2006. Management believes that the value of the real estate exceeds the loan balance and that we will not be required to satisfy these guarantees.

We have entered into agreements, subject to the completion of due diligence requirements, resolution of certain contingencies and completion of customary closing conditions, for the future acquisitions of land and buildings totaling $158.9 million. In most cases we may withdraw from land purchase contracts with the seller’s only recourse being earnest money deposits already made.

In October 2000, we sold or contributed industrial properties and undeveloped land with a fair value of $487.0 million to a joint venture (Dugan Realty LLC) in which we have a 50% interest and recognized a net gain of $35.2 million. In connection with this transaction, the joint venture partners were given an option to put up to a $50.0 million interest in the joint venture to us in exchange for our common stock or cash (at our option), subject to certain timing and other restrictions. As a result of this put option, we deferred $10.2 million of gain on sale of depreciated property and recorded a $50.0 million liability.

We are subject to various legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of any ultimate liability with respect to these actions will not materially affect our consolidated financial statements or results of operations.

(16) Subsequent Events

Declaration of Dividends

The Company’s board of directors declared the following dividends at its January 30, 2008, regularly scheduled board meeting:

Class	Quarterly Amount/Share		Record Date	Payment Date
Common	$	0.48	February 14, 2008	February 29, 2008
Preferred (per depositary share):
Series J	$	0.414063	February 15, 2008	February 29, 2008
Series K	$	0.406250	February 15, 2008	February 29, 2008
Series L	$	0.412500	February 15, 2008	February 29, 2008
Series M	$	0.434375	March 17, 2008	March 31, 2008
Series N	$	0.453125	March 17, 2008	March 31, 2008

In February 2008, we issued $300.0 million of 8.375% Series O Cumulative Redeemable Preferred Shares.

EX-99.3

Exhibit 99.3

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands) Schedule 3

		Building		Initial Cost		Cost Capitalized Subsequent to Development	Gross Book Value 12/31/07			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
ALLEN, TEXAS
Allen Central Park	One Allen Center	Office	—	1,966	11,178	629	1,966	11,807	13,773	—	2007	2007
ALPHARETTA, GEORGIA
Brookside Office Park	Radiant I	Office	—	1,269	14,697	63	1,269	14,760	16,029	3,142	1998	1999
Brookside Office Park	Brookside I	Office	—	1,625	8,594	3,926	1,492	12,653	14,145	2,834	1999	1999
Brookside Office Park	Radiant II	Office	—	831	6,755	185	831	6,940	7,771	1,229	2000	2000
Brookside Office Park	Brookside II	Office	—	1,381	11,239	2,048	1,248	13,420	14,668	3,159	2000	2000
Hembree Crest	11415 Old Roswell Road	Industrial	—	648	2,454	1,055	648	3,509	4,157	1,353	1991	1999
NorthWinds Center	Northwinds VII	Office	—	2,271	19,852	1,571	2,304	21,390	23,694	4,909	1998	1999
NorthWinds Center	Northwinds I	Office	—	1,879	15,933	1,641	1,879	17,574	19,453	3,286	1997	2004
NorthWinds Center	Northwinds II	Office	—	1,796	15,973	600	1,796	16,573	18,369	3,406	1997	2004
NorthWinds Center	Northwinds III	Office	15,931	1,868	16,114	597	1,868	16,711	18,579	3,482	1998	2004
NorthWinds Center	Northwinds IV	Office	15,162	1,844	16,089	1,727	1,844	17,816	19,660	3,669	1999	2004
NorthWinds Center	Northwinds V	Office	—	2,215	15,522	1,336	2,215	16,858	19,073	3,313	1999	2004
NorthWinds Center	Northwinds VI	Office	—	2,662	15,600	708	2,662	16,308	18,970	3,512	2000	2004
NorthWinds Center	Northwinds Village	Retail	—	704	4,453	153	710	4,600	5,310	591	2000	2004
NorthWinds Center	Northwinds Restaurant	Retail	—	202	329	—	202	329	531	51	1997	2004
Ridgeland	1320 Ridgeland Parkway	Industrial	—	998	5,874	52	998	5,926	6,924	1,250	1999	1999
Ridgeland	1345 Ridgeland Parkway	Industrial	—	488	2,186	1,068	488	3,254	3,742	769	1999	1999
Ridgeland	1335 Ridgeland Pkwy	Industrial	—	579	2,105	803	579	2,908	3,487	650	1999	1999
Preston Ridge	Preston Ridge IV	Office	—	2,777	13,300	725	2,781	14,021	16,802	3,658	2000	2004
Windward	800 North Point Parkway	Office	—	1,250	18,443	—	1,250	18,443	19,693	2,341	1991	2003
Windward	900 North Point Parkway	Office	—	1,250	13,945	—	1,250	13,945	15,195	1,786	1991	2003
ARLINGTON HEIGHTS, ILLINOIS
Arlington Business Park	Atrium II	Office	—	776	6,882	2,167	776	9,049	9,825	2,479	1986	1998
ATLANTA, GEORGIA
Druid Chase	6 West Druid Hills Drive	Office	—	473	6,731	2,489	473	9,220	9,693	2,608	1968	1999
Druid Chase	2801 Buford Highway	Office	—	794	9,310	2,757	794	12,067	12,861	2,836	1977	1999
Druid Chase	1190 West Druid Hills Drive	Office	—	689	6,485	1,308	689	7,793	8,482	1,780	1980	1999
Center Pointe Medical I and II	Center Pointe Medical I and II	Healthcare	24,067	9,697	29,308	599	9,697	29,907	39,604	500	1984	2007
AURORA, ILLINOIS
Meridian Business Campus	535 Exchange	Industrial	—	386	920	269	386	1,189	1,575	301	1984	1999
Meridian Business Campus	525 North Enterprise Street	Industrial	—	342	1,678	110	342	1,788	2,130	473	1984	1999
Meridian Business Campus	615 North Enterprise Street	Industrial	—	468	2,824	649	468	3,473	3,941	973	1984	1999
Meridian Business Campus	3615 Exchange	Industrial	—	410	1,603	140	410	1,743	2,153	493	1986	1999
Meridian Business Campus	4000 Sussex Avenue	Industrial	—	417	1,711	332	417	2,043	2,460	535	1990	1999
Meridian Business Campus	3737 East Exchange	Industrial	—	598	2,543	166	598	2,709	3,307	721	1985	1999
Meridian Business Campus	444 North Commerce Street	Industrial	—	722	5,403	597	722	6,000	6,722	1,659	1985	1999
Meridian Business Campus	880 North Enterprise Street	Industrial	—	1,150	5,669	530	1,150	6,199	7,349	1,426	1999	1999
Meridian Business Campus	Meridian Office Service Center	Industrial	—	567	1,083	1,701	567	2,784	3,351	578	2001	2001
Meridian Business Campus	Genera Corporation	Industrial	—	1,957	3,827	—	1,957	3,827	5,784	593	2004	2004
BATAVIA, OHIO
Mercy Hospital Clermont MOB	Mercy Hospital Clermont MOB	Healthcare	—	—	8,699	667	—	9,366	9,366	—	2005	2007
BERRY HILL, TN
Four-Forty Business Center	Four-Forty Business Center I	Industrial	—	938	6,462	46	938	6,508	7,446	1,383	1997	1999
Four-Forty Business Center	Four-Forty Business Center III	Industrial	—	1,812	7,579	259	1,812	7,838	9,650	1,795	1998	1999
Four-Forty Business Center	Four-Forty Business Center IV	Industrial	—	1,522	5,552	416	1,522	5,968	7,490	1,343	1997	1999
Four-Forty Business Center	Four-Forty Business Center V	Industrial	—	471	3,321	527	471	3,848	4,319	1,436	1999	1999
BLOOMINGTON, MINNESOTA
Alpha Business Center	Alpha Business Ctr I&II	Office	—	280	1,421	367	280	1,788	2,068	431	1980	1999
Alpha Business Center	Alpha Business Ctr III&IV	Industrial	—	341	1,775	375	341	2,150	2,491	519	1980	1999
Alpha Business Center	Alpha Business Ctr V	Industrial	—	537	2,977	361	537	3,338	3,875	813	1980	1999
Hampshire Dist. Center	Hampshire Dist Center North	Industrial	1,228	779	4,500	287	779	4,787	5,566	1,253	1979	1997
Hampshire Dist. Center	Hampshire Dist Center South	Industrial	1,389	901	5,069	313	901	5,382	6,283	1,412	1979	1997
Norman Pointe Office Park	Norman Pointe I	Office	—	3,650	25,966	2,350	3,650	28,316	31,966	5,621	2000	2000
Norman Pointe Office Park	Norman Pointe II	Office	—	5,885	38,649	1,206	5,885	39,855	45,740	279	2007	2007

Duke Realty Corporation	Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)

Development	Name	Building Type	Encumbrances	Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/07			Accumulated Depreciation (1)	Year Constructed	Year Acquired
				Land	Buildings		Land/Land Imp	Bldgs/TI	Total
BLUE ASH, OHIO
McAuley Place	McAuley Place	Office	—	2,331	17,604	2,103	2,331	19,707	22,038	3,822	2000	2001
Huntington Bank Building	Huntington Bank Building	Office	—	175	241	—	175	241	416	71	1986	1996
Lake Forest/Westlake	Lake Forest Place	Office	—	1,953	18,680	3,281	1,953	21,961	23,914	6,367	1985	1996
Northmark Office Park	Northmark Building 1	Office	—	1,452	5,077	440	1,452	5,517	6,969	1,913	1987	2004
Lake Forest/Westlake	Westlake Center	Office	—	2,459	15,911	3,446	2,459	19,357	21,816	6,049	1981	1996
Landings	Landings Building I	Office	—	4,302	17,512	301	4,302	17,813	22,115	1,171	2006	2006
Landings	Landings Building II	Office	—	4,817	9,377	2,134	4,817	11,511	16,328	318	2007	2007
BOLINGBROOK, ILLINOIS
Joliet Road Business Park	555 Joliet Road, Bolingbrook	Industrial	—	2,184	9,284	752	2,332	9,888	12,220	1,527	1967	2002
Joliet Road Business Park	Dawes Transportation	Industrial	—	3,050	4,453	—	3,050	4,453	7,503	632	2005	2005
BRASELTON, GEORGIA
Braselton Business Park	Braselton II	Industrial	—	1,365	8,720	1,720	1,884	9,921	11,805	1,787	2001	2001
Park 85 at Braselton	Park 85 at Braselton Bldg 625	Industrial	—	9,855	25,690	463	9,855	26,153	36,008	1,871	2004	2005
BRENTOOD, TENNESSEE
Brentwood South Bus. Center	Brentwood South Bus Ctr I	Industrial	—	1,065	5,773	838	1,065	6,611	7,676	1,572	1987	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr II	Industrial	—	1,065	2,781	1,275	1,065	4,056	5,121	882	1987	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr III	Industrial	—	848	3,998	660	848	4,658	5,506	1,160	1989	1999
Creekside Crossing	Creekside Crossing I	Office	—	1,900	7,649	580	1,901	8,228	10,129	2,294	1997	1997
Creekside Crossing	Creekside Crossing II	Office	—	2,087	7,801	1,204	2,087	9,005	11,092	2,477	1999	1999
Creekside Crossing	Creekside Crossing III	Office	—	2,969	9,700	1,668	2,969	11,368	14,337	840	2006	2006
Creekside Crossing	Creekside Crossing IV	Office	—	2,966	8,104	651	3,010	8,711	11,721	101	2007	2007
BROOKLYN PARK, MINNESOTA
7300 Northland Drive	7300 Northland Drive	Industrial	—	700	6,578	278	703	6,853	7,556	1,831	1980	1998
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 1	Industrial	—	835	5,321	1,113	1,286	5,983	7,269	1,705	1998	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 2	Industrial	—	449	2,722	674	599	3,246	3,845	834	1998	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 3	Industrial	—	758	1,891	233	837	2,045	2,882	515	1999	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 4	Industrial	—	2,079	7,324	1,331	2,397	8,337	10,734	2,617	1999	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 5	Industrial	—	1,079	4,433	509	1,354	4,667	6,021	1,049	1999	1999
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 6	Industrial	—	788	2,951	2,144	1,031	4,852	5,883	1,550	2000	2000
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 10	Industrial	—	2,757	4,642	1,079	2,723	5,755	8,478	801	2004	2004
Crosstown North Bus. Ctr.	Crosstown North Bus. Ctr. 12	Industrial	—	4,564	9,014	215	4,564	9,229	13,793	1,066	2005	2005
BUFFALO, NEW YORK
Office Development	HealthNow	Office	—	11,686	54,009	3,732	11,686	57,741	69,427	—	2007	2007
CARMEL, INDIANA
Hamilton Crossing	Hamilton Crossing I	Industrial	—	835	4,008	2,588	847	6,584	7,431	2,599	1989	1993
Hamilton Crossing	Hamilton Crossing II	Office	—	313	840	1,180	384	1,949	2,333	623	1997	1997
Hamilton Crossing	Hamilton Crossing III	Office	—	890	9,581	1,912	890	11,493	12,383	3,276	2000	2000
Hamilton Crossing	Hamilton Crossing IV	Office	—	515	5,186	571	598	5,674	6,272	1,320	1999	1999
Hamilton Crossing	Hamilton Crossing VI	Office	—	1,044	13,671	840	1,068	14,487	15,555	2,271	2003	2003
Meridian Technology Center	Meridian Tech Center	Office	—	376	2,695	1,107	376	3,802	4,178	831	1986	2002
West Carmel Marketplace	Burger King (Ground Lease)	Grounds	—	848	—	189	1,037	—	1,037	—	n/a	2007
CAROL STREAM, ILLINOIS
Carol Stream Business Park	Carol Stream IV	Industrial	—	3,204	14,986	471	3,204	15,457	18,661	2,303	1994	2003
Carol Stream Business Park	Carol Stream V	Industrial	—	4,553	7,605	242	4,553	7,847	12,400	707	1986	2003
CARY, NORTH CAROLINA
Regency Forest	200 Regency Forest Dr.	Office	—	1,230	13,365	1,877	1,230	15,242	16,472	3,641	1999	1999
Regency Forest	100 Regency Forest Dr.	Office	—	1,538	9,835	1,907	1,618	11,662	13,280	2,720	1997	1999
Weston Parkway	6501 Weston Parkway	Office	—	1,775	10,580	1,287	1,775	11,867	13,642	2,807	1996	1999
CELEBRATION, FLORIDA
Celebration Business Center	Celebration Business Center I	Office	—	1,102	4,722	529	1,308	5,045	6,353	1,151	1997	1999
Celebration Business Center	Celebration Business Center II	Office	—	771	3,587	337	961	3,734	4,695	879	1997	1999
Celebration Office Center	Celebration Office Center I	Office	—	1,382	5,771	326	1,382	6,097	7,479	1,318	2000	2000
Celebration Office Center	Celebration Office Center II	Office	—	1,382	5,859	2,422	1,382	8,281	9,663	2,455	2001	2001
CHANTILLY, VIRGINIA
Northridge at Westfields	15002 Northridge Dr.	Office	—	1,148	2,597	442	1,148	3,039	4,187	—	2007	2007
Northridge at Westfields	15004 Northridge Dr.	Office	—	1,305	2,981	426	1,305	3,407	4,712	—	2007	2007
Northridge at Westfields	15006 Northridge Dr.	Office	—	1,611	3,586	522	1,611	4,108	5,719	—	2007	2007

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands)											Schedule 3
		Building		Initial Cost		Cost Capitalized Subsequent to Development	Gross Book Value 12/31/07			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
CHILLICOTHE, OHIO
Adena Health Pavilion	Adena Health Pavilion	Healthcare	—	—	11,738	8	—	11,746	11,746	396	2005	2007
Adena Health System OPC	Adena Health System OPC	Healthcare	—	—	2,946	1	—	2,947	2,947	266	2005	2007
CINCINNATI, OHIO
311 Elm	311 Elm	Office	—	339	5,734	1,321	346	7,048	7,394	3,955	1986	1993
312 Elm	312 Elm	Office	34,273	4,750	46,380	5,159	5,428	50,861	56,289	18,388	1992	1993
312 Plum	312 Plum	Office	—	2,539	23,832	3,736	2,590	27,517	30,107	9,825	1987	1993
One Ashview Place	One Ashview Place	Office	—	1,204	12,613	2,877	1,204	15,490	16,694	5,149	1989	1997
Blue Ash Office Center	Blue Ash Office Center VI	Office	—	518	2,752	647	518	3,399	3,917	975	1989	1997
Towers of Kenwood	Towers of Kenwood	Office	—	4,891	42,239	2,103	4,891	44,342	49,233	5,897	1989	2003
Governors Hill	8790 Governor’s Hill	Office	—	400	4,559	1,055	408	5,606	6,014	2,058	1985	1993
Governors Hill	8800 Governor’s Hill	Office	—	225	2,293	597	231	2,884	3,115	1,394	1985	1993
Governors Hill	8600/8650 Governor’s Hill Dr.	Office	—	1,220	18,337	6,138	1,245	24,450	25,695	8,726	1986	1993
Kenwood Executive Center	Kenwood Executive Center	Office	—	606	3,930	971	664	4,843	5,507	1,377	1981	1997
Kenwood Commons	8230 Kenwood Commons	Office	3,398	638	4,225	1,006	638	5,231	5,869	2,676	1986	1993
Kenwood Commons	8280 Kenwood Commons	Office	2,102	638	3,027	504	638	3,531	4,169	1,542	1986	1993
Kenwood Medical Office Bldg.	Kenwood Medical Office Bldg.	Office	—	—	7,663	100	—	7,763	7,763	1,710	1999	1999
Pfeiffer Place	Pfeiffer Place	Office	—	3,608	12,806	1,491	3,608	14,297	17,905	3,390	2001	2001
Pfeiffer Woods	Pfeiffer Woods	Office	—	1,450	12,322	1,777	2,131	13,418	15,549	3,090	1998	1999
Remington Office Park	Remington Park Building A	Office	—	560	1,448	680	560	2,128	2,688	571	1982	1997
Remington Office Park	Remington Park Building B	Office	—	560	1,347	953	560	2,300	2,860	700	1982	1997
Triangle Office Park	Triangle Office Park	Office	3,470	1,018	10,917	1,294	1,018	12,211	13,229	6,380	1965	1993
CLAYTON, MISSOURI
Interco Corporate Tower	Interco Corporate Tower	Office	—	6,150	43,068	2,555	6,150	45,623	51,773	7,890	1986	2002
COLUMBUS, OHIO
Easton	One Easton Oval	Office	—	2,789	9,946	731	2,789	10,677	13,466	2,659	1998	1998
Easton	Two Easton Oval	Office	—	2,489	16,379	1,756	2,489	18,135	20,624	4,584	1996	1998
Easton	Easton Way One	Office	—	1,874	9,181	582	1,874	9,763	11,637	2,707	2000	2000
Easton	Easton Way Two	Office	—	2,005	8,994	794	2,005	9,788	11,793	3,243	2001	2001
Easton	Easton Way Three	Office	—	2,768	11,186	93	2,768	11,279	14,047	2,823	2002	2002
Easton	Lane Bryant	Office	—	4,346	11,395	71	4,371	11,441	15,812	1,336	2005	2005
Easton	4400 Easton Commons	Office	—	1,886	7,779	988	1,886	8,767	10,653	812	2005	2005
Easton	4343 Easton Commons	Office	—	3,059	7,248	344	3,059	7,592	10,651	49	2007	2007
Polaris	1000 Polaris Parkway	Office	—	1,200	5,723	1,502	1,293	7,132	8,425	1,665	1992	1999
COPPELL, TEXAS
Freeport North	Freeport X	Industrial	—	8,198	18,852	3,031	8,198	21,883	30,081	5,300	2003	2003
DAVENPORT, FLORIDA
Park 27 Distribution Center	Park 27 Distribution Center I	Industrial	—	2,449	6,107	20	2,449	6,127	8,576	1,398	2002	2002
DES PLAINES, ILLINOIS
2180 South Wolf Road	2180 South Wolf Road	Industrial	—	179	1,632	486	179	2,118	2,297	611	1966	1998
DOWNERS GROVE, ILLINOIS
Executive Towers	Executive Towers I	Office	—	2,652	23,402	6,571	2,652	29,973	32,625	8,141	1983	1997
Executive Towers	Executive Towers II	Office	—	3,386	27,730	8,441	3,386	36,171	39,557	10,255	1984	1997
Executive Towers	Executive Towers III	Office	—	3,512	32,345	6,854	3,512	39,199	42,711	11,467	1987	1997
DUBLIN, OHIO
Scioto Corporate Center	Scioto Corporate Center	Office	—	1,100	2,876	1,527	1,100	4,403	5,503	1,317	1987	1996
Tuttle Crossing	Qwest	Office	—	2,618	18,715	1,816	2,670	20,479	23,149	7,456	1990	1993
Tuttle Crossing	4600 Lakehurst	Office	—	1,494	12,858	560	1,524	13,388	14,912	4,915	1990	1993
Tuttle Crossing	4700 Lakehurst Court	Office	—	717	2,406	776	717	3,182	3,899	1,067	1994	1994
Tuttle Crossing	4675 Lakehurst	Office	—	605	5,863	176	605	6,039	6,644	2,006	1995	1995
Tuttle Crossing	5500 Glendon Court	Office	—	1,066	7,620	1,147	1,066	8,767	9,833	3,174	1995	1995
Tuttle Crossing	5555 Glendon Court	Office	—	1,600	7,197	1,313	1,767	8,343	10,110	3,021	1995	1995
Britton Central	6060 Britton Parkway	Office	—	1,601	8,725	182	1,601	8,907	10,508	4,189	1996	1996
Tuttle Crossing	Compmanagement	Office	—	867	4,397	653	867	5,050	5,917	1,751	1997	1997
Tuttle Crossing	4725 Lakehurst	Office	—	483	9,349	759	483	10,108	10,591	3,533	1998	1998
Tuttle Crossing	5555 Parkcenter Circle	Office	—	1,580	8,951	1,084	1,580	10,035	11,615	3,426	1992	1994
Tuttle Crossing	Parkwood Place	Office	—	1,690	11,563	1,093	1,690	12,656	14,346	4,802	1997	1997
Tuttle Crossing	Nationwide	Office	—	4,815	15,431	823	4,815	16,254	21,069	4,899	1996	1996
Tuttle Crossing	Emerald II	Office	—	495	2,767	199	495	2,966	3,461	776	1998	1998

Duke Realty Corporation	Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)

		Building		Initial Cost		Cost Capitalized Subsequent to Development	Gross Book Value 12/31/07			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Tuttle Crossing	Atrium II, Phase I	Office	—	1,649	9,884	551	1,649	10,435	12,084	3,348	1997	1997
Tuttle Crossing	Atrium II, Phase II	Office	—	1,597	7,993	1,134	1,597	9,127	10,724	2,359	1998	1998
Tuttle Crossing	Blazer I	Office	—	904	4,511	592	904	5,103	6,007	1,445	1999	1999
Tuttle Crossing	Parkwood II	Office	—	1,848	14,030	821	2,400	14,299	16,699	4,943	2000	2000
Tuttle Crossing	Blazer II	Office	—	1,016	6,046	736	1,016	6,782	7,798	1,853	2000	2000
Tuttle Crossing	Emerald III	Office	—	1,685	8,079	1,683	1,694	9,753	11,447	2,316	2001	2001
DULUTH, GEORGIA
Crestwood Pointe	3805 Crestwood Parkway	Office	—	877	14,888	1,449	877	16,337	17,214	3,952	1997	1999
Crestwood Pointe	3885 Crestwood Parkway	Office	—	878	13,972	877	878	14,849	15,727	3,345	1998	1999
Hampton Green	Hampton Green Office I	Office	—	1,388	11,379	772	1,388	12,151	13,539	3,103	2000	2000
River Green	3450 River Green Court	Industrial	—	194	2,001	273	194	2,274	2,468	484	1989	1999
Business Park At Sugarloaf	2775 Premiere Parkway	Industrial	6,854	560	4,671	277	565	4,943	5,508	1,065	1997	1999
Business Park At Sugarloaf	3079 Premiere Parkway	Industrial	11,554	776	6,277	1,995	783	8,265	9,048	2,249	1998	1999
Business Park At Sugarloaf	Sugarloaf Office I	Office	—	1,042	8,680	725	1,042	9,405	10,447	2,285	1998	1999
Business Park At Sugarloaf	2850 Premiere Parkway	Office	7,071	621	4,631	19	627	4,644	5,271	612	1997	2002
Business Park At Sugarloaf	Sugarloaf Office II (3039)	Office	—	972	3,784	618	1,006	4,368	5,374	599	1999	2002
Business Park At Sugarloaf	Sugarloaf Office III (2810)	Office	—	696	3,896	431	696	4,327	5,023	763	1999	2002
Business Park At Sugarloaf	2855 Premiere Parkway	Industrial	6,068	765	3,512	512	770	4,019	4,789	951	1999	1999
Business Park At Sugarloaf	6655 Sugarloaf	Industrial	9,934	1,651	6,985	75	1,659	7,052	8,711	1,083	1998	2001
Business Park At Sugarloaf	Sugarloaf Office IV	Office	—	623	2,695	391	623	3,086	3,709	650	2000	2000
Business Park At Sugarloaf	Sugarloaf Office V	Office	—	744	3,159	539	744	3,698	4,442	1,511	2001	2001
Business Park At Sugarloaf	Sugarloaf VI	Office	—	1,589	5,902	967	1,589	6,869	8,458	1,035	2004	2004
Business Park At Sugarloaf	Sugarloaf VII	Office	—	1,722	5,163	2,396	1,726	7,555	9,281	373	2006	2006
EAGAN, MINNESOTA
Apollo Industrial Center	Apollo Industrial Ctr I	Industrial	—	866	4,976	1,472	882	6,432	7,314	2,110	1997	1997
Apollo Industrial Center	Apollo Industrial Ctr II	Industrial	—	474	2,462	167	474	2,629	3,103	534	2000	2000
Apollo Industrial Center	Apollo Industrial Ctr III	Industrial	—	1,432	6,316	51	1,432	6,367	7,799	1,345	2000	2000
Silver Bell Commons	Silver Bell Commons	Industrial	—	1,807	6,527	1,747	1,908	8,173	10,081	2,422	1999	1999
Trapp Road Commerce Center	Trapp Road Commerce Center I	Industrial	—	671	3,847	453	700	4,271	4,971	1,046	1996	1998
Trapp Road Commerce Center	Trapp Road Commerce Center II	Industrial	—	1,250	6,738	1,095	1,266	7,817	9,083	2,011	1998	1998
EARTH CITY, MISSOURI
Earth City	Rider Trail	Office	—	2,615	10,877	2,105	2,615	12,982	15,597	3,566	1987	1997
Earth City	3300 Pointe 70	Office	—	1,186	7,357	2,516	1,186	9,873	11,059	3,448	1989	1997
Earth City	Corporate Center, Earth City	Industrial	—	783	3,399	1,501	783	4,900	5,683	1,954	2000	2000
Earth City	Corporate Trail Distribution	Industrial	—	2,850	6,163	659	2,850	6,822	9,672	495	2005	2005
EAST POINTE, GEORGIA
Camp Creek	Camp Creek Bldg 1400	Office	5,211	561	2,839	821	563	3,658	4,221	854	1988	2001
Camp Creek	Camp Creek Bldg 1800	Office	4,124	462	2,612	228	464	2,838	3,302	514	1989	2001
Camp Creek	Camp Creek Bldg 2000	Office	3,322	395	2,292	46	397	2,336	2,733	425	1989	2001
Camp Creek	Camp Creek Bldg 2400	Industrial	3,050	296	1,675	427	298	2,100	2,398	435	1988	2001
Camp Creek	Camp Creek Bldg 2600	Industrial	3,393	364	2,086	172	366	2,256	2,622	423	1990	2001
Camp Creek	Clorox Company	Industrial	19,322	4,406	9,512	601	4,841	9,678	14,519	1,502	2003	2003
Camp Creek	Camp Creek Building 1200	Office	—	1,334	2,475	946	1,334	3,421	4,755	904	2004	2004
Camp Creek	3900 North Commerce	Industrial	5,321	1,059	2,967	—	1,059	2,967	4,026	331	2005	2005
Camp Creek	3909 North Commerce	Industrial	—	5,687	10,192	8,741	7,279	17,341	24,620	840	2005	2005
Camp Creek	Hartsfield Warehouse BTS	Industrial	11,930	2,065	7,076	64	2,065	7,140	9,205	455	2005	2005
Camp Creek	Camp Creek Building 1000	Office	—	1,537	2,459	1,103	1,537	3,562	5,099	385	2006	2006
Camp Creek	3000 Centre Parkway	Industrial	—	1,163	1,884	881	1,170	2,758	3,928	129	2007	2007
EVANSVILLE, INDIANA
St. Mary’s Heart Institute	St. Mary’s Heart Institute	Healthcare	—	—	20,946	1,298	—	22,244	22,244	898	2005	2007
FAIRFIELD, OHIO
Thunderbird Building 1	Thunderbird Building 1	Industrial	—	248	1,656	331	248	1,987	2,235	632	1991	1995
FISHERS, INDIANA
Exit 5	Exit 5 Building 1	Industrial	—	822	2,695	153	822	2,848	3,670	796	1999	1999
Exit 5	Exit 5 Building 2	Industrial	—	749	4,134	373	749	4,507	5,256	1,603	1999	1999
FRANKLIN, TENNESSEE
Aspen Grove Business Center	Aspen Grove Business Ctr I	Industrial	—	936	6,382	2,721	936	9,103	10,039	2,371	1996	1999
Aspen Grove Business Center	Aspen Grove Business Ctr II	Industrial	—	1,151	6,482	540	1,151	7,022	8,173	1,556	1996	1999
Aspen Grove Business Center	Aspen Grove Business Ctr III	Industrial	—	970	5,815	84	970	5,899	6,869	1,522	1998	1999
Aspen Grove Business Center	Aspen Grove Business Center IV	Industrial	—	492	2,416	20	492	2,436	2,928	443	2002	2002
Aspen Grove Business Center	Aspen Grove Business Ctr V	Industrial	—	943	5,172	1,452	943	6,624	7,567	1,587	1996	1999

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands) Schedule 3

		Building		Initial Cost		Cost Capitalized Subsequent to Development	Gross Book Value 12/31/07			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
Aspen Grove Business Center	Aspen Grove Flex Center II	Industrial	—	240	1,289	373	240	1,662	1,902	144	1999	1999
Aspen Grove Business Center	Aspen Grove Office Center I	Office	—	950	6,247	2,449	950	8,696	9,646	1,974	1999	1999
Aspen Grove Business Center	Aspen Grove Flex Center I	Industrial	—	301	1,233	630	301	1,863	2,164	443	1999	1999
Aspen Grove Business Center	Aspen Grove Flex Center III	Industrial	—	327	1,697	846	327	2,543	2,870	789	2001	2001
Aspen Grove Business Center	Aspen Grove Flex Center IV	Industrial	—	205	861	205	205	1,066	1,271	164	2001	2001
Aspen Grove Business Center	Aspen Corporate Center 100	Office	—	723	3,451	94	723	3,545	4,268	718	2004	2004
Aspen Grove Business Center	Aspen Corporate Center 200	Office	—	1,306	1,870	1,341	1,306	3,211	4,517	344	2005	2005
Aspen Grove Business Center	Aspen Corporate Center 400	Office	—	1,833	2,621	461	1,833	3,082	4,915	90	2007	2007
Aspen Grove Business Center	Aspen Grove Office Center II	Office	—	2,320	8,177	3,661	2,320	11,838	14,158	518	2007	2007
Brentwood South Bus. Center	Brentwood South Bus Ctr IV	Industrial	—	569	2,435	901	569	3,336	3,905	673	1990	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr V	Industrial	—	445	1,932	93	445	2,025	2,470	439	1990	1999
Brentwood South Bus. Center	Brentwood South Bus Ctr VI	Industrial	—	489	1,243	602	489	1,845	2,334	408	1990	1999
FRANKLIN PARK, ILLINOIS
O'Hare Distribution Center	O'Hare Distribution Ctr	Industrial	—	3,900	3,013	233	3,900	3,246	7,146	31	2007	2007
FRISCO, TEXAS
Duke Bridges	Duke Bridges III	Office	—	4,647	7,676	1,885	4,647	9,561	14,208	—	2007	2007
FT. WAYNE, INDIANA
Parkview Ambulatory Svcs - MOB	Parkview Ambulatory Svcs—MOB	Healthcare	—	937	10,974	526	937	11,500	12,437	75	2006	2007
GARDEN CITY, GEORGIA
Aviation Court	Aviation Court Land	Grounds	—	1,509	—	—	1,509	—	1,509	37	n/a	2006
GRAND PRAIRIE, TEXAS
Grand Lakes	Grand Lakes I	Industrial	—	8,106	13,069	316	8,040	13,451	21,491	1,149	2006	2006
GROVEPORT, OHIO
6600 Port Road	6600 Port Road	Industrial	—	2,725	23,261	1,422	2,850	24,558	27,408	6,819	1995	1997
Groveport Commerce Center	Groveport Commerce Center #437	Industrial	—	1,049	6,759	1,244	1,065	7,987	9,052	1,782	1999	1999
Groveport Commerce Center	Groveport Commerce Center #168	Industrial	—	510	3,755	1,060	510	4,815	5,325	1,389	1999	1999
Groveport Commerce Center	Groveport Commerce Center #345	Industrial	—	1,045	6,435	942	1,045	7,377	8,422	1,712	2000	2000
Groveport Commerce Center	Groveport Commerce Center #667	Industrial	—	4,420	14,231	356	4,420	14,587	19,007	2,300	2004	2004
HANAHAN, SOUTH CAROLINA
Charleston	916 Commerce Circle	Industrial	1,079	286	1,781	79	286	1,860	2,146	—	1999	2006
HAZELWOOD, MISSOURI
Hazelwood	Lindbergh Distribution Center	Industrial	—	8,200	10,305	1,064	8,200	11,369	19,569	154	2007	2007
HEBRON, KENTUCKY
Southpark, KY	Southpark Building 4	Industrial	—	779	3,353	156	779	3,509	4,288	1,225	1994	1994
Southpark, KY	CR Services	Industrial	—	1,085	4,214	1,410	1,085	5,624	6,709	1,922	1994	1994
Hebron Industrial Park	Hebron Building 1	Industrial	—	8,855	11,527	221	8,855	11,748	20,603	1,157	2006	2006
Hebron Industrial Park	Hebron Building 2	Industrial	—	6,790	9,039	380	6,791	9,418	16,209	81	2007	2007
HOPKINS, MINNESOTA
Cornerstone Business Center	Cornerstone Business Center	Industrial	4,563	1,469	8,402	497	1,543	8,825	10,368	2,375	1996	1997
HOUSTON, TEXAS
Cedar Crossing Business Park	Cedar Crossing	Industrial	12,615	6,098	9,776	—	6,098	9,776	15,874	—	2005	2007
Sam Houston Crossing	Sam Houston Crossing One	Office	—	4,016	8,535	135	4,052	8,634	12,686	—	2007	2007
HUTCHINS, TEXAS
Duke Intermodal Park	Duke Intermodal I	Industrial	—	5,290	9,641	1,091	5,290	10,732	16,022	1,399	2006	2006
INDEPENDENCE, OHIO
Corporate Plaza	Corporate Plaza I	Office	—	2,116	14,072	2,599	2,116	16,671	18,787	4,625	1989	1996
Corporate Plaza	Corporate Plaza II	Office	—	1,841	11,906	2,661	1,841	14,567	16,408	3,977	1991	1996
Freedom Square	Freedom Square I	Office	—	595	3,842	816	600	4,653	5,253	1,348	1980	1996
Freedom Square	Freedom Square II	Office	—	1,746	11,534	2,288	1,746	13,822	15,568	3,686	1987	1996
Freedom Square	Freedom Square III	Office	—	701	5,861	371	701	6,232	6,933	1,620	1997	1997
Oak Tree Place	Oak Tree Place	Office	—	703	4,555	844	703	5,399	6,102	1,339	1979	1997
Park Center Plaza	Park Center Plaza I	Office	—	2,193	12,607	991	2,193	13,598	15,791	3,953	1998	1998
Park Center Plaza	Park Center Plaza II	Office	—	2,190	13,353	918	2,190	14,271	16,461	4,194	1999	1999
Park Center Plaza	Park Center Plaza III	Office	—	2,190	11,545	2,605	2,190	14,150	16,340	3,327	2000	2000

Duke Realty Corporation	Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)

Development	Name	Building Type	Encumbrances	Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/07			Accumulated Depreciation (1)		Year Constructed	Year Acquired
				Land	Buildings		Land/Land Imp	Bldgs/TI	Total
INDIANAPOLIS, INDIANA
Park 100	Park 465	Industrial	—	124	759	19	124	778	902	59		1983	2005
Franklin Road Business Park	Franklin Road Business Center	Industrial	—	594	9,280	1,354	594	10,634	11,228	3,789		1962	1995
6061 Guion Road	6061 Guion Rd	Industrial	—	274	1,798	194	274	1,992	2,266	664		1974	1995
Hillsdale	Hillsdale Technecenter 4	Industrial	—	366	5,007	1,295	366	6,302	6,668	2,248		1987	1993
Hillsdale	Hillsdale Technecenter 5	Industrial	—	251	2,933	1,107	251	4,040	4,291	1,371		1987	1993
Hillsdale	Hillsdale Technecenter 6	Industrial	—	315	2,962	1,925	315	4,887	5,202	1,692		1987	1993
Keystone Crossing	8555 N. River Road	Office	—	—	5,911	1,231	—	7,142	7,142	2,069		1985	1997
One North Capitol	One North Capitol	Office	—	1,439	9,276	1,416	1,439	10,692	12,131	2,671		1980	1998
8071 Township Line Road	8071 Township Line Road	Healthcare	—	—	2,319	561	—	2,880	2,880	17		1976	2007
Park 100	Park 100 Bldg 31	Industrial	—	64	378	20	64	398	462	28		1978	2005
Park 100	Park 100 Building 96	Industrial	—	1,414	13,804	113	1,667	13,664	15,331	4,535		1994	1995
Park 100	Park 100 Building 98	Industrial	—	273	8,217	2,170	273	10,387	10,660	3,874		1968	1994
Park 100	Park 100 Building 100	Industrial	—	103	2,073	663	103	2,736	2,839	915		1995	1995
Park 100	Park 100 Building 102	Office	—	182	1,118	68	182	1,186	1,368	89		1982	2005
Park 100	Park 100 Building 107	Industrial	—	99	1,698	370	99	2,068	2,167	656		1984	1995
Park 100	Park 100 Building 109	Industrial	—	240	1,802	350	246	2,146	2,392	1,103		1985	1986
Park 100	Park 100 Building 116	Office	—	341	3,166	367	348	3,526	3,874	1,742		1988	1988
Park 100	Park 100 Building 118	Office	—	226	2,198	791	230	2,985	3,215	1,093		1988	1993
Park 100	Park 100 Building 119	Office	—	388	3,667	1,394	500	4,949	5,449	2,265		1989	1993
Park 100	Park 100 Building 122	Industrial	—	284	3,695	1,017	290	4,706	4,996	1,748		1990	1993
Park 100	Park 100 Building 124	Office	—	227	2,496	418	227	2,914	3,141	403		1992	2002
Park 100	Park 100 Building 127	Industrial	—	96	1,654	454	96	2,108	2,204	682		1995	1995
Park 100	Park 100 Building 141	Industrial	—	1,120	3,305	93	1,120	3,398	4,518	472		2005	2005
Park 100	UPS Parking	Grounds	—	270	—	—	270	—	270	92		n/a	1997
Park 100	Norgate Ground Lease	Grounds	—	51	—	—	51	—	51	—		n/a	1995
Park 100	Zollman Ground Lease	Grounds	—	115	—	—	115	—	115	—		n/a	1994
Park 100	Bldg 111 Parking Lot	Grounds	—	196	—	—	196	—	196	62		n/a	1994
Park 100	Becton Dickinson Lot	Grounds	—	—	—	13	13	—	13	12		n/a	1993
Park 100	3.58 acres on Allison Avenue	Grounds	—	242	—	—	242	—	242	31		n/a	2000
Park 100	Hewlett-Packard Land Lease	Grounds	—	252	—	—	252	—	252	25		n/a	2003
Park 100	Park 100 Bldg 121 Land Lease	Grounds	—	5	—	—	5	—	5	—		n/a	2003
Park 100	Hewlett Packard Land Lse-62	Grounds	—	45	—	—	45	—	45	4		n/a	2003
Park 100	West 79th St. Parking Lot LL	Grounds	—	350	—	—	350	—	350	17		n/a	2006
Park Fletcher	Park Fletcher Building 33	Industrial	—	1,237	5,264	17	1,237	5,281	6,518	307		1997	2006
Park Fletcher	Park Fletcher Building 34	Industrial	—	1,331	5,636	193	1,331	5,829	7,160	351		1997	2006
Park Fletcher	Park Fletcher Building 35	Industrial	—	380	1,503	3	380	1,506	1,886	107		1997	2006
Park Fletcher	Park Fletcher Building 36	Industrial	—	476	2,355	27	476	2,382	2,858	131		1997	2006
Park Fletcher	Park Fletcher Building 37	Industrial	—	286	653	2	286	655	941	49		1998	2006
Park Fletcher	Park Fletcher Building 38	Industrial	—	1,428	5,957	49	1,428	6,006	7,434	326		1999	2006
Park Fletcher	Park Fletcher Building 39	Industrial	—	570	2,130	101	570	2,231	2,801	127		1999	2006
Park Fletcher	Park Fletcher Building 40	Industrial	—	761	3,363	111	761	3,474	4,235	183		1999	2006
Park Fletcher	Park Fletcher Building 41	Industrial	—	952	4,310	78	952	4,388	5,340	226		2001	2006
Park Fletcher	Park Fletcher Building 42	Industrial	—	2,095	8,301	13	2,095	8,314	10,409	(6	)	2001	2006
Parkwood Crossing	One Parkwood Crossing	Office	—	1,018	10,007	1,110	1,028	11,107	12,135	3,642		1989	1995
Parkwood Crossing	Two Parkwood Crossing	Office	—	861	6,421	1,027	871	7,438	8,309	2,276		1996	1996
Parkwood Crossing	Three Parkwood Crossing	Office	—	1,377	8,583	749	1,387	9,322	10,709	3,007		1997	1997
Parkwood Crossing	Four Parkwood Crossing	Office	—	1,489	10,995	656	1,537	11,603	13,140	2,840		1998	1998
Parkwood Crossing	Five Parkwood Crossing	Office	—	1,485	11,703	702	1,528	12,362	13,890	3,185		1999	1999
Parkwood Crossing	Six Parkwood Crossing	Office	—	1,960	16,055	1,028	1,960	17,083	19,043	4,840		2000	2000
Parkwood Crossing	Eight Parkwood Crossing	Office	—	6,435	16,367	482	6,435	16,849	23,284	3,603		2002	2002
Parkwood Crossing	Nine Parkwood Crossing	Office	—	6,046	15,991	841	6,047	16,831	22,878	1,837		2005	2005
Parkwood West	One West	Office	—	5,361	16,182	898	5,361	17,080	22,441	173		2007	2007
River Road—Indianapolis	River Road Building I	Office	—	856	7,725	1,750	856	9,475	10,331	3,544		1997	1997
Woodland Corporate Park	Woodland Corporate Park I	Office	—	290	4,338	700	320	5,008	5,328	1,966		1998	1998
Woodland Corporate Park	Woodland Corporate Park II	Office	—	271	3,543	855	297	4,372	4,669	1,323		1999	1999
Woodland Corporate Park	Woodland Corporate Park III	Office	—	1,227	4,135	242	1,227	4,377	5,604	1,193		1999	2000
Woodland Corporate Park	Woodland Corporate Park IV	Office	—	715	7,245	528	715	7,773	8,488	2,426		2000	2000
Woodland Corporate Park	Woodland Corporate Park V	Office	—	768	10,015	36	768	10,051	10,819	1,800		2002	2002
IRVING, TEXAS
International Commerce Park	DFW Airport I	Industrial	—	3,612	9,160	4,028	3,612	13,188	16,800	—		2007	2007
LAKE FOREST, ILLINOIS
Bradley Business Center	13825 West Laurel Drive	Industrial	—	750	1,874	906	750	2,780	3,530	1,129		1978	1999
Conway Park	One Conway Park	Office	—	1,901	17,612	2,591	1,901	20,203	22,104	5,284		1989	1998

Duke Realty Corporation	Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)

	Name	Building Type	Encumbrances	Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/07			Accumulated Depreciation (1)	Year Constructed	Year Acquired
Development				Land	Buildings		Land/Land Imp	Bldgs/TI	Total
LAKE MARY, FLORIDA
Northpoint	Northpoint Center I	Office	—	1,087	10,487	1,464	1,087	11,951	13,038	2,612	1998	2001
Northpoint	Northpoint Center II	Office	—	1,202	9,238	916	1,202	10,154	11,356	1,988	1999	2001
Northpoint	Northpoint III	Office	—	1,552	10,252	198	1,552	10,450	12,002	2,818	2001	2001
Northpoint	Northpoint IV	Office	—	1,605	8,273	4,703	1,605	12,976	14,581	2,182	2002	2002
LAWRENCEVILLE, GEORGIA
Hillside at Huntcrest	Huntcrest I	Office	—	1,193	10,829	286	1,193	11,115	12,308	2,618	2000	2001
Hillside at Huntcrest	Huntcrest II	Office	—	927	9,559	1,010	927	10,569	11,496	1,657	2000	2001
Hillside at Huntcrest	Huntcrest III	Office	—	1,358	12,817	348	1,358	13,165	14,523	2,733	2001	2002
Hillside at Huntcrest	Huntcrest IV	Office	—	1,295	5,742	332	1,306	6,063	7,369	766	2003	2003
Other Northeast I85 Properties	Weyerhaeuser BTS	Industrial	9,290	3,974	3,101	21	3,982	3,114	7,096	786	2004	2004
LEBANON, INDIANA
Lebanon Business Park	Lebanon Building 4	Industrial	11,610	305	9,012	236	305	9,248	9,553	2,236	1997	1997
Lebanon Business Park	Lebanon Building 9	Industrial	10,614	554	6,871	770	554	7,641	8,195	1,806	1999	1999
Lebanon Business Park	Lebanon Building 12	Industrial	24,610	5,163	13,207	394	5,163	13,601	18,764	2,731	2002	2002
Lebanon Business Park	Lebanon Building 13	Industrial	9,365	561	6,579	83	1,901	5,322	7,223	1,262	2003	2003
Lebanon Business Park	Lebanon Building 14	Industrial	19,431	2,813	12,056	601	2,813	12,657	15,470	1,418	2004	2004
LEBANON, TENNESSEE
Park 840 Logistics Center	Pk 840 Logistics Cnt. Bldg 653	Industrial	—	6,776	11,125	1,090	6,776	12,215	18,991	733	2006	2006
LISLE, ILLINOIS
Corporate Lakes Business Park	2275 Cabot Drive	Office	—	3,355	7,008	6	3,355	7,014	10,369	901	1996	2004
MARYLAND HEIGHTS, MISSOURI
Riverport Business Park	Riverport Tower	Office	—	3,549	29,254	8,249	3,954	37,098	41,052	10,929	1991	1997
Riverport Business Park	Riverport Distribution	Industrial	—	242	2,230	1,043	242	3,273	3,515	736	1990	1997
Riverport Business Park	Express Scripts Service Center	Industrial	—	1,197	8,755	427	1,197	9,182	10,379	2,570	1992	1997
Riverport Business Park	Express Scripts HQ	Office	—	2,285	8,988	295	2,285	9,283	11,568	2,036	1999	1999
Riverport Business Park	Riverport 1	Industrial	—	900	2,849	372	900	3,221	4,121	937	1999	1999
Riverport Business Park	Riverport 2	Industrial	—	1,238	4,161	80	1,238	4,241	5,479	1,091	2000	2000
Riverport Business Park	Riverport 3	Industrial	—	1,269	3,804	2,171	1,269	5,975	7,244	2,270	2001	2001
Riverport Business Park	Riverport IV	Industrial	—	1,864	3,362	1,353	1,864	4,715	6,579	169	2007	2007
MASON, OHIO
Deerfield Crossing	Deerfield Crossing Building 1	Office	—	1,493	12,046	853	1,493	12,899	14,392	3,285	1999	1999
Deerfield Crossing	Deerfield Crossing Building 2	Office	—	1,069	13,478	491	1,069	13,969	15,038	4,335	2001	2001
Governors Pointe	Governor’s Pointe 4770	Office	—	586	7,870	818	596	8,678	9,274	3,996	1986	1993
Governors Pointe	Governor’s Pointe 4705	Office	—	719	6,100	3,688	987	9,520	10,507	3,471	1988	1993
Governors Pointe	Governor’s Pointe 4605	Office	—	630	17,632	3,526	909	20,879	21,788	7,277	1990	1993
Governors Pointe	Governor’s Pointe 4660	Office	—	385	4,298	279	529	4,433	4,962	1,382	1997	1997
Governors Pointe	Governor’s Pointe 4680	Office	—	1,115	7,283	1,041	1,115	8,324	9,439	2,418	1998	1998
Governors Pointe Retail	Bigg’s Supercenter	Retail	—	2,107	9,927	430	4,227	8,237	12,464	3,429	1996	1996
Governors Pointe Retail	Lowes	Retail	—	3,750	6,502	623	3,750	7,125	10,875	3,190	1997	1997
MCDONOUGH, GEORGIA
Liberty Distribution Center	120 Declaration Drive	Industrial	—	615	8,522	282	615	8,804	9,419	1,954	1997	1999
Liberty Distribution Center	250 Declaration Drive	Industrial	22,292	2,273	13,225	2,278	2,312	15,464	17,776	2,757	2001	2001
MENDOTA HEIGHTS, MINNESOTA
Enterprise Industrial Center	Enterprise Industrial Center	Industrial	1,138	864	5,027	579	888	5,582	6,470	1,502	1979	1997
MIAMISBURG, OHIO
Kettering Sycamore POB	Kettering Sycamore POB	Healthcare	—	203	12,501	459	203	12,960	13,163	—	2007	2007
MONROE, OHIO
Monroe Business Center	Monroe Business Center Bldg. 1	Industrial	—	660	5,082	354	660	5,436	6,096	1,511	1992	1999
MOREHEAD CITY, NC
Industrial Development	NC State Ports Authority	Industrial	—	—	11,653	1,693	—	13,346	13,346	—	2007	2007

Duke Realty Corporation												Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)
						Cost Capitalized Subsequent to Development or Acquisition
		Building Type		Initial Cost			Gross Book Value 12/31/07			Accumulated Depreciation (1)	Year Constructed	Year Acquired
Development	Name		Encumbrances	Land	Buildings		Land/Land Imp	Bldgs/TI	Total
MORRISVILLE, NORTH CAROLINA
Perimeter Park	507 Airport Blvd	Industrial	—	1,327	8,273	1,510	1,351	9,759	11,110	2,424	1993	1999
Perimeter Park	5151 McCrimmon Pkwy	Office	—	1,318	7,832	1,926	1,342	9,734	11,076	1,934	1995	1999
Perimeter Park	2600 Perimeter Park Dr	Industrial	—	975	5,210	613	991	5,807	6,798	1,217	1997	1999
Perimeter Park	5150 McCrimmon Pkwy	Industrial	—	1,739	12,207	819	1,773	12,992	14,765	2,782	1998	1999
Perimeter Park	2400 Perimeter Park Dr.	Office	—	760	5,776	1,159	778	6,917	7,695	1,676	1999	1999
Perimeter Park	3000 Perimeter Park Dr (Met 1)	Industrial	554	482	2,891	1,160	491	4,042	4,533	1,036	1989	1999
Perimeter Park	2900 Perimeter Park Dr (Met 2)	Industrial	407	235	1,942	1,108	264	3,021	3,285	663	1990	1999
Perimeter Park	2800 Perimeter Park Dr (Met 3)	Industrial	762	777	4,826	599	811	5,391	6,202	1,235	1992	1999
Perimeter Park	1100 Perimeter Park Drive	Industrial	—	777	5,950	932	794	6,865	7,659	1,618	1990	1999
Perimeter Park	1400 Perimeter Park Drive	Office	—	666	4,561	1,214	900	5,541	6,441	1,490	1991	1999
Perimeter Park	1500 Perimeter Park Drive	Office	—	1,148	10,262	404	1,177	10,637	11,814	2,337	1996	1999
Perimeter Park	1600 Perimeter Park Drive	Office	—	1,463	9,964	2,101	1,513	12,015	13,528	2,859	1994	1999
Perimeter Park	1800 Perimeter Park Drive	Office	—	907	5,649	1,067	993	6,630	7,623	1,554	1994	1999
Perimeter Park	2000 Perimeter Park Drive	Office	—	788	5,738	897	842	6,581	7,423	1,909	1997	1999
Perimeter Park	1700 Perimeter Center West	Office	—	1,230	10,765	2,779	1,260	13,514	14,774	3,018	1997	1999
Perimeter Park	3900 N. Paramount Parkway	Office	—	540	13,270	256	574	13,492	14,066	2,901	1998	1999
Perimeter Park	3900 S. Paramount Pkwy	Office	—	1,575	12,152	1,483	1,612	13,598	15,210	3,918	2000	1999
Perimeter Park	5200 East Paramount	Office	—	1,748	17,388	1,010	1,797	18,349	20,146	5,681	1999	1999
Perimeter Park	3500 Paramount Pkwy	Office	—	755	12,948	137	755	13,085	13,840	4,333	1999	2000
Perimeter Park	2700 Perimeter Park	Industrial	—	662	2,794	1,732	662	4,526	5,188	1,379	2001	2001
Perimeter Park	5200 West Paramount	Office	—	1,831	12,608	1,083	1,831	13,691	15,522	2,954	2000	2001
Perimeter Park	2450 Perimeter Park	Office	—	669	2,894	25	669	2,919	3,588	789	2001	2001
Perimeter Park	3800 Paramount Parkway	Office	—	2,657	7,329	3,052	2,657	10,381	13,038	660	2006	2006
Perimeter Park	Lenovo BTS I	Office	—	1,439	16,961	1,503	1,439	18,464	19,903	932	2006	2006
Perimeter Park	Lenovo BTS II	Office	—	1,725	16,809	1,984	1,725	18,793	20,518	801	2007	2007
Perimeter Park	Perimeter One	Office	—	5,880	14,421	833	5,880	15,254	21,134	112	2007	2007
Woodlake Center	100 Innovation Avenue (Woodlk)	Industrial	—	633	3,748	634	633	4,382	5,015	859	1994	1999
Woodlake Center	101 Innovation Ave(Woodlk III)	Industrial	—	615	4,095	148	615	4,243	4,858	957	1997	1999
Woodlake Center	200 Innovation Drive	Industrial	—	357	4,489	60	357	4,549	4,906	1,271	1999	1999
Woodlake Center	501 Innovation Ave.	Industrial	—	640	5,632	176	640	5,808	6,448	1,140	1999	1999
Woodlake Center	1000 Innovation (Woodlk 6)	Industrial	—	514	2,927	88	514	3,015	3,529	436	1996	2002
Woodlake Center	1200 Innovation (Woodlk 7)	Industrial	—	740	5,936	98	740	6,034	6,774	1,958	1996	2002
Woodlake Center	Woodlake VIII	Industrial	—	908	1,517	339	908	1,856	2,764	441	2003	2003
NAPERVILLE, ILLINOIS
Meridian Business Campus	1835 Jefferson	Industrial	—	3,180	7,959	5	3,184	7,960	11,144	956	2003	2003
NASHVILLE, TENNESSEE
Airpark East	Airpark East-800 Commerce Dr.	Industrial	—	1,564	2,943	732	1,564	3,675	5,239	696	2001	2002
Lakeview Place	Three Lakeview	Office	—	2,126	11,737	2,869	2,126	14,606	16,732	3,143	1999	1999
Lakeview Place	One Lakeview Place	Office	—	2,046	11,147	1,837	2,123	12,907	15,030	3,140	1986	1998
Lakeview Place	Two Lakeview Place	Office	—	2,046	11,712	1,954	2,046	13,666	15,712	3,374	1988	1998
Riverview Business Center	Riverview Office Building	Office	—	847	5,892	1,456	847	7,348	8,195	1,731	1983	1999
Nashville Business Center	Nashville Business Center I	Industrial	—	936	6,031	656	936	6,687	7,623	1,397	1997	1999
Nashville Business Center	Nashville Business Center II	Industrial	—	5,659	10,206	840	5,659	11,046	16,705	1,074	2005	2005
NEW ALBANY, OHIO
New Albany	6525 West Campus Oval	Office	—	842	3,607	2,245	881	5,813	6,694	1,072	1999	1999
NILES, ILLINOIS
Howard 220	Howard 220	Industrial	—	4,920	3,669	138	4,920	3,807	8,727	306	1950	2004
NORCROSS, GEORGIA
Gwinnett Park	1835 Shackleford Court	Office	—	29	6,052	1,012	29	7,064	7,093	1,708	1990	1999
Gwinnett Park	1854 Shackelford Court	Office	—	52	9,790	1,331	52	11,121	11,173	2,524	1985	1999
Gwinnett Park	4275 Shackleford Road	Office	—	8	2,027	548	12	2,571	2,583	693	1985	1999
NORFOLK, VIRGINIA
Norfolk Industrial Park	1400 Sewells Point Road	Industrial	3,131	1,463	5,723	—	1,463	5,723	7,186	—	1983	2007
NORTHLAKE, ILLINOIS
Northlake 1 Park	Northlake I	Industrial	—	5,721	10,579	624	5,721	11,203	16,924	1,863	2002	2002
Northlake Distribution Park	Northlake III - Grand Whse.	Industrial	—	5,382	5,708	230	5,382	5,938	11,320	368	2006	2006
NORTH OLMSTED, OHIO
Great Northern Corporate Ctr.	Great Northern Corp Center I	Office	—	1,048	6,779	1,697	1,040	8,484	9,524	2,373	1985	1996
Great Northern Corporate Ctr.	Great Northern Corp Center II	Office	—	1,048	6,742	1,750	1,048	8,492	9,540	2,264	1987	1996
Great Northern Corporate Ctr.	Great Northern Corp Center III	Office	—	604	4,952	605	604	5,557	6,161	1,244	1999	1999

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands) Schedule 3

		Building		Initial Cost		Cost Capitalized Subsequent to Development	Gross Book Value 12/31/07			Accumulated	Year	Year
Development	Name	Type	Encumbrances	Land	Buildings	or Acquisition	Land/Land Imp	Bldgs/TI	Total	Depreciation (1)	Constructed	Acquired
OAK BROOK, ILLINOIS
2000 York Road	2000 York Road	Office	10,422	2,625	15,831	15	2,625	15,846	18,471	5,421	1960	2005
ORLANDO, FLORIDA
Liberty Park at Southcenter	Southcenter I-Brede/Allied BTS	Industrial	—	3,094	3,867	—	3,094	3,867	6,961	877	2002	2002
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg B	Industrial	—	565	4,893	431	570	5,319	5,889	1,264	1996	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg A	Industrial	—	493	4,521	234	498	4,750	5,248	1,052	1997	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg D	Industrial	—	593	4,131	287	597	4,414	5,011	928	1998	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg E	Industrial	—	649	4,549	344	653	4,889	5,542	1,098	1997	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg F	Industrial	—	1,030	5,232	1,104	1,035	6,331	7,366	1,629	1999	1999
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg H	Industrial	—	725	3,310	125	730	3,430	4,160	742	2000	2000
Parksouth Distribution Center	Parksouth Dist. Ctr-Bldg C	Industrial	—	598	1,769	1,273	674	2,966	3,640	481	2000	2000
Parksouth Distribution Center	Parksouth-Benjamin Moore BTS	Industrial	—	708	2,070	10	1,115	1,673	2,788	347	2003	2003
Crossroads Business Park	Crossroads Business Center VII	Industrial	—	2,803	5,891	3,184	2,803	9,075	11,878	600	2006	2006
Crossroads Business Park	Crossroads VIII	Industrial	—	2,701	4,817	303	2,701	5,120	7,821	70	2007	2007
Park 27 Distribution Center	Park 27 Distribution Center II	Industrial	—	4,374	8,218	235	4,374	8,453	12,827	92	2007	2007
OTSEGO, MINNESOTA
Gateway North Business Center	Gateway North 1	Industrial	—	2,243	3,959	4	2,243	3,963	6,206	49	2007	2007
PARK RIDGE, ILLINOIS
O'Hare Corporate Centre	O'Hare Corporate Centre	Office	—	1,476	8,816	787	1,476	9,603	11,079	1,279	1985	2003
PHOENIX, ARIZONA
Buckeye Logistics Center	Buckeye Logistics Center	Industrial	—	7,421	26,329	212	7,424	26,538	33,962	—	2007	2007
PLAINFIELD, ILLINOIS
Edward Plainfield MOB I	Edward Plainfield MOB I	Healthcare	—	—	9,483	706	—	10,189	10,189	480	2005	2007
PLAINFIELD, INDIANA
Plainfield Business Park	Plainfield Building 1	Industrial	17,026	1,104	11,151	425	1,104	11,576	12,680	2,354	2000	2000
Plainfield Business Park	Plainfield Building 2	Industrial	17,657	1,387	9,437	2,806	2,603	11,027	13,630	2,762	2000	2000
Plainfield Business Park	Plainfield Building 3	Industrial	17,424	2,016	9,239	2,303	2,016	11,542	13,558	1,306	2002	2002
Plainfield Business Park	Plainfield Building 5	Industrial	13,114	2,726	7,284	212	2,726	7,496	10,222	1,115	2004	2004
Plainfield Business Park	Plainfield Building 8	Industrial	21,693	4,527	11,928	859	4,527	12,787	17,314	815	2006	2006
PLANO, TEXAS
5556 & 5560 Tennyson Parkway	5560 Tennyson Parkway	Office	—	1,527	5,831	724	1,527	6,555	8,082	1,615	1997	1999
5556 & 5560 Tennyson Parkway	5556 Tennyson Parkway	Office	—	1,181	11,154	205	1,181	11,359	12,540	3,119	1999	1999
PLYMOUTH, MINNESOTA
Medicine Lake Indust Ctr	Medicine Lake Indus. Center	Industrial	1,968	1,145	5,977	1,362	1,145	7,339	8,484	1,789	1970	1997
PORT WENTWORTH, GEORGIA
Grange Road	318 Grange Road	Industrial	2,824	957	4,816	1	957	4,817	5,774	351	2001	2006
Grange Road	246 Grange Road	Industrial	6,197	1,191	8,294	7	1,191	8,301	9,492	525	2006	2006
Crossroads (Savannah)	100 Ocean Link Way-Godley Rd	Industrial	11,102	2,306	13,389	30	2,336	13,389	15,725	646	2006	2006
RALEIGH, NORTH CAROLINA
Brook Forest	Brook Forest I	Office	—	1,242	5,248	541	1,242	5,789	7,031	1,502	2000	2000
Centerview	Centerview 5540	Office	—	773	6,243	1,462	773	7,705	8,478	1,222	1986	2003
Centerview	Centerview 5565	Office	—	513	4,807	691	513	5,498	6,011	783	1999	2003
Crabtree Overlook	Crabtree Overlook	Office	—	2,164	20,253	135	2,164	20,388	22,552	6,054	2000	2000
Interchange Plaza	801 Jones Franklin Rd	Office	—	1,351	7,753	934	1,351	8,687	10,038	2,036	1995	1999
Interchange Plaza	5520 Capital Ctr Dr (Intrch I)	Office	—	842	4,395	531	842	4,926	5,768	1,432	1993	1999
Walnut Creek	Walnut Creek Business Park #1	Industrial	—	419	2,294	582	442	2,853	3,295	649	2001	2001
Walnut Creek	Walnut Creek Business Park #2	Industrial	—	456	3,529	287	487	3,785	4,272	1,106	2001	2001
Walnut Creek	Walnut Creek Business Park #3	Industrial	—	679	3,966	1,251	719	5,177	5,896	1,197	2001	2001
Walnut Creek	Walnut Creek IV	Industrial	—	2,038	2,152	514	2,083	2,621	4,704	597	2004	2004
ROMEOVILLE, ILLINOIS
Crossroads Business Park	Chapco Carton Company	Industrial	—	917	4,537	49	917	4,586	5,503	696	1999	2002
Park 55	Park 55 Bldg. 1	Industrial	—	6,433	8,997	944	6,433	9,941	16,374	1,680	2004	2004
ROSEMONT, ILLINOIS
O'Hare International Ctr	O'Hare International Ctr I	Office	—	7,700	33,263	386	7,700	33,649	41,349	6,332	1984	2005
O'Hare International Ctr	O'Hare International Ctr II	Office	—	8,103	31,997	2,675	8,103	34,672	42,775	5,440	1987	2005

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands) Schedule 3

Development	Name	Building Type	Encumbrances	Initial Cost		Cost Capitalized Subsequent to Development or Acquisition	Gross Book Value 12/31/07			Accumulated Depreciation (1)	Year Constructed	Year Acquired
				Land	Buildings		Land/Land Imp	Bldgs/TI	Total
Riverway	Riverway East	Office	—	13,664	34,542	1,477	13,664	36,019	49,683	7,300	1987	2005
Riverway	Riverway West	Office	—	3,294	39,676	3,499	3,294	43,175	46,469	5,567	1989	2005
Riverway	Riverway Central	Office	—	4,229	68,293	2,311	4,229	70,604	74,833	8,727	1989	2005
Riverway	Riverway Retail	Retail	—	189	—	3	189	3	192	45	1987	2005
Riverway	Riverway MW II (Ground Lease)	Grounds	—	586	—	—	586	—	586	—	n/a	2007
SAVANNAH, GEORGIA
Gulfstream Road	198 Gulfstream	Industrial	6,280	549	4,255	—	549	4,255	4,804	323	1997	2006
Gulfstream Road	194 Gulfstream	Industrial	978	412	2,816	20	412	2,836	3,248	212	1998	2006
Gulfstream Road	190 Gulfstream	Industrial	2,172	689	4,916	—	689	4,916	5,605	355	1999	2006
Grange Road	250 Grange Road	Industrial	4,644	928	8,648	7	928	8,655	9,583	555	2002	2006
Grange Road	248 Grange Road	Industrial	1,980	664	3,496	8	664	3,504	4,168	230	2002	2006
SPA Park	80 Coleman Blvd.	Industrial	2,074	782	2,962	—	782	2,962	3,744	160	2002	2006
Crossroads (Savannah)	163 Portside Court	Industrial	21,417	8,433	8,366	1	8,433	8,367	16,800	945	2004	2006
Crossroads (Savannah)	151 Portside Court	Industrial	3,765	966	7,155	—	966	7,155	8,121	341	2003	2006
Crossroads (Savannah)	175 Portside Court	Industrial	13,892	4,300	15,696	—	4,300	15,696	19,996	1,179	2005	2006
Crossroads (Savannah)	150 Portside Court	Industrial	10,603	3,071	23,001	704	3,071	23,705	26,776	1,581	2001	2006
Crossroads (Savannah)	235 Jimmy Deloach Parkway	Industrial	3,862	1,074	8,442	—	1,074	8,442	9,516	517	2001	2006
Crossroads (Savannah)	239 Jimmy Deloach Parkway	Industrial	3,337	1,074	7,141	—	1,074	7,141	8,215	441	2001	2006
Crossroads (Savannah)	246 Jimmy Deloach Parkway	Industrial	3,766	992	5,383	14	992	5,397	6,389	337	2006	2006
Crossroads (Savannah)	276 Jimmy Deloach Parkway	Grounds	—	2,266	—	—	2,266	—	2,266	84	n/a	2006
SEVEN HILLS, OHIO
Rock Run Business Campus	Rock Run North	Office	—	837	5,429	664	960	5,970	6,930	1,847	1984	1996
Rock Run Business Campus	Rock Run Center	Office	—	1,046	6,898	758	1,169	7,533	8,702	2,400	1985	1996
SHARONVILLE, OHIO
Mosteller Distribution Center	Mosteller Distribution Ctr. I	Industrial	—	1,275	5,294	3,534	1,275	8,828	10,103	2,618	1957	1996
Mosteller Distribution Center	Mosteller Distribution Ctr. II	Industrial	—	828	4,723	1,577	828	6,300	7,128	2,413	1997	1997
ST. LOUIS PARK, MINNESOTA
The West End	1600 Tower	Office	—	2,321	29,136	4,686	2,321	33,822	36,143	8,348	2000	2000
The West End	MoneyGram Tower	Office	—	3,039	35,487	6,151	3,091	41,586	44,677	8,927	1987	1999
Minneapolis	Chilies Ground Lease	Grounds	—	921	—	69	990	—	990	5	n/a	1998
Minneapolis	Olive Garden Ground Lease	Grounds	—	921	—	—	921	—	921	—	n/a	1998
ST. LOUIS, MISSOURI
Lakeside Crossing	Lakeside Crossing Building One	Industrial	—	596	2,078	637	596	2,715	3,311	800	2001	2001
Lakeside Crossing	Lakeside Crossing Building II	Industrial	—	1,122	2,227	—	1,121	2,228	3,349	1,007	2002	2002
Lakeside Crossing	Lakeside Crossing Building III	Industrial	—	1,905	4,305	650	1,905	4,955	6,860	1,101	2001	2001
Lakeside Crossing	Lakeside Crossing V	Office	—	860	1,928	—	860	1,928	2,788	776	2003	2003
Lakeside Crossing	Lakeside Crossing Building VI	Industrial	—	1,079	2,125	2,388	1,512	4,080	5,592	1,053	2002	2002
Laumeier Office Park	Laumeier I	Office	—	1,384	8,869	2,271	1,384	11,140	12,524	3,825	1987	1995
Laumeier Office Park	Laumeier II	Office	—	1,421	9,440	1,565	1,421	11,005	12,426	3,855	1988	1995
Laumeier Office Park	Laumeier IV	Office	—	1,029	6,728	1,455	1,029	8,183	9,212	2,107	1987	1998
Maryville Center	500-510 Maryville Centre	Office	—	3,402	24,533	3,915	3,402	28,448	31,850	7,537	1984	1997
Maryville Center	530 Maryville Centre	Office	—	2,219	15,231	2,381	2,219	17,612	19,831	5,023	1990	1997
Maryville Center	550 Maryville Centre	Office	—	1,996	12,516	2,261	1,996	14,777	16,773	3,730	1988	1997
Maryville Center	635-645 Maryville Centre	Office	—	3,048	18,166	2,372	3,048	20,538	23,586	5,550	1987	1997
Maryville Center	655 Maryville Centre	Office	—	1,860	13,258	2,320	1,860	15,578	17,438	3,864	1994	1997
Maryville Center	540 Maryville Centre	Office	—	2,219	14,455	1,736	2,219	16,191	18,410	4,503	1990	1997
Maryville Center	520 Maryville Centre	Office	—	2,404	14,520	1,121	2,404	15,641	18,045	3,751	1998	1998
Maryville Center	700 Maryville Centre	Office	—	4,556	28,599	397	4,556	28,996	33,552	7,789	1999	1999
Maryville Center	533 Maryville Centre	Office	—	3,230	16,746	283	3,230	17,029	20,259	4,342	2000	2000
Maryville Center	555 Maryville Centre	Office	—	3,226	15,978	1,901	3,226	17,879	21,105	3,965	2000	2000
Maryville Center	625 Maryville Centre	Office	2,109	2,509	11,229	282	2,509	11,511	14,020	2,343	1996	2002
West Port Place	Westport Center I	Industrial	—	1,707	5,329	887	1,707	6,216	7,923	1,959	1998	1998
West Port Place	Westport Center II	Industrial	—	914	2,000	257	914	2,257	3,171	740	1998	1998
West Port Place	Westport Center III	Industrial	—	1,206	2,651	523	1,206	3,174	4,380	902	1998	1998
West Port Place	Westport Center IV	Industrial	—	1,440	4,860	58	1,440	4,918	6,358	1,142	2000	2000
West Port Place	Westport Center V	Industrial	—	493	1,274	52	493	1,326	1,819	316	1999	1999
West Port Place	Westport Place	Office	—	1,990	5,478	2,069	1,990	7,547	9,537	1,837	1999	1999
Westmark	Westmark	Office	—	1,497	10,012	2,234	1,684	12,059	13,743	4,371	1987	1995
Westview Place	Westview Place	Office	—	669	8,295	3,482	669	11,777	12,446	3,767	1988	1995
Woodsmill Commons	Woodsmill Commons II (400)	Office	—	1,718	7,896	51	1,718	7,947	9,665	1,196	1985	2003
Woodsmill Commons	Woodsmill Commons I (424)	Office	—	1,836	7,779	598	1,836	8,377	10,213	1,307	1985	2003

Duke Realty Corporation	Schedule 3
Real Estate and Accumulated Depreciation
December 31, 2007
(in thousands)

Development	Name	Building Type	Encumbrances	Initial Cost		Cost Capitalized Subsequent to Development or Acquisition		Gross Book Value 12/31/07						Accumulated Depreciation (1)		Year Constructed	Year Acquired
				Land	Buildings			Land/Land Imp		Bldgs/TI		Total
STERLING, VIRGINIA
TransDulles Centre	22800 Davis Drive	Office	—	2,550	11,250	—		2,550		11,250		13,800		648		1989	2006
TransDulles Centre	22714 Glenn Drive	Industrial	—	3,973	4,422	128		3,973		4,550		8,523		—		2007	2007
SUFFOLK, VIRGINIA
Northgate Commerce Park	101 Industrial Drive, Bldg. A	Industrial	—	1,558	8,231	—		1,558		8,231		9,789		—		2007	2007
Northgate Commerce Park	155 Industrial Drive, Bldg. B	Industrial	—	1,558	8,231	—		1,558		8,231		9,789		—		2007	2007
SUMMIT, NEW JERSEY
Medical Arts Center II	Medical Arts Center II	Healthcare	—	—	13,096	1,054		—		14,150		14,150		—		2006	2007
SUMNER, WASHINGTON
Sumner Transit	Sumner Transit	Industrial	18,519	17,385	6,100	—		17,385		6,100		23,485		—		2005	2007
SUNRISE, FLORIDA
Sawgrass	Sawgrass - Building B	Office	—	1,211	5,176	1,253		1,211		6,429		7,640		1,504		1999	2001
Sawgrass	Sawgrass - Building A	Office	—	1,147	4,544	63		1,147		4,607		5,754		1,214		2000	2001
Sawgrass	Sawgrass Pointe	Office	—	3,484	21,827	5,804		3,484		27,631		31,115		5,473		2001	2001
TAMPA, FLORIDA
Fairfield Distribution Center	Fairfield Distribution Ctr I	Industrial	—	483	2,626	94		487		2,716		3,203		589		1998	1999
Fairfield Distribution Center	Fairfield Distribution Ctr II	Industrial	—	530	4,900	70		534		4,966		5,500		1,066		1998	1999
Fairfield Distribution Center	Fairfield Distribution Ctr III	Industrial	—	334	2,771	98		338		2,865		3,203		610		1999	1999
Fairfield Distribution Center	Fairfield Distribution Ctr IV	Industrial	—	600	1,958	1,089		604		3,043		3,647		755		1999	1999
Fairfield Distribution Center	Fairfield Distribution Ctr V	Industrial	—	488	2,796	213		488		3,009		3,497		669		2000	2000
Fairfield Distribution Center	Fairfield Distribution Ctr VI	Industrial	—	555	4,153	487		555		4,640		5,195		1,070		2001	2001
Fairfield Distribution Center	Fairfield Distribution Ctr VII	Industrial	—	394	2,618	778		394		3,396		3,790		1,018		2001	2001
Fairfield Distribution Center	Fairfield VIII	Industrial	—	1,082	3,326	—		1,082		3,326		4,408		979		2004	2004
Eagle Creek Business Center	Eagle Creek Business Ctr. I	Industrial	—	3,705	3,187	1,043		3,705		4,230		7,935		431		2006	2006
Eagle Creek Business Center	Eagle Creek Business Ctr. II	Industrial	—	2,354	2,272	960		2,354		3,232		5,586		179		2007	2007
Eagle Creek Business Center	Eagle Creek Business Ctr. III	Industrial	—	2,332	2,237	501		2,332		2,738		5,070		138		2007	2007
Highland Oaks	Highland Oaks I	Office	—	1,525	12,720	937		1,525		13,657		15,182		3,236		1999	1999
Highland Oaks	Highland Oaks II	Office	—	1,605	10,991	3,218		1,605		14,209		15,814		3,623		1999	1999
Highland Oaks	Highland Oaks III	Office	—	2,882	8,871	288		2,522		9,519		12,041		312		2007	2007
Highland Oaks	Highland Oaks V	Office	—	2,412	6,524	961		2,412		7,485		9,897		317		2007	2007
TITUSVILLE, FLORIDA
Retail Development	Crossroads Marketplace	Retail	—	12,678	6,314	503		12,021		7,474		19,495		—		2007	2007
WEST CHESTER, OHIO
Centre Pointe Office Park	Centre Pointe I	Office	—	2,501	9,552	313		2,501		9,865		12,366		2,101		2000	2004
Centre Pointe Office Park	Centre Pointe II	Office	—	2,056	10,063	286		2,056		10,349		12,405		2,109		2001	2004
Centre Pointe Office Park	Centre Pointe III	Office	—	2,048	10,309	461		2,048		10,770		12,818		2,352		2002	2004
Centre Pointe Office Park	Centre Pointe IV	Office	—	2,013	9,017	1,540		2,932		9,638		12,570		939		2005	2005
Centre Pointe Office Park	Centre Pointe V	Office	—	2,557	13,982	98		2,611		14,026		16,637		—		2007	2007
World Park at Union Centre	World Park at Union Centre 10	Industrial	—	2,150	7,885	587		2,151		8,471		10,622		543		2005	2005
World Park at Union Centre	World Park at Union Centre 11	Industrial	—	2,592	6,936	13		2,592		6,949		9,541		1,247		2004	2004
WESTMONT, ILLINOIS
Oakmont Corporate Center	Oakmont Tech Center	Office	—	1,501	8,590	2,488		1,703		10,876		12,579		2,676		1989	1998
Oakmont Corporate Center	Oakmont Circle Office	Office	—	3,177	13,798	2,785		3,521		16,239		19,760		4,073		1990	1998
WESTON, FLORIDA
Weston Pointe	Weston Pointe I	Office	—	2,580	10,020	705		2,580		10,725		13,305		1,536		1999	2003
Weston Pointe	Weston Pointe II	Office	—	2,183	10,791	64		2,183		10,855		13,038		1,539		2000	2003
Weston Pointe	Weston Pointe III	Office	—	2,183	11,531	717		2,183		12,248		14,431		1,546		2001	2003
Weston Pointe	Weston Pointe IV	Office	—	3,349	10,686	29		3,349		10,715		14,064		1,030		2005	2005
ZIONSVILLE, INDIANA
Anson	Marketplace at Anson	Retail	—	2,147	2,862	160		2,147		3,022		5,169		—		2007	2007
	Eliminations					(764	)	(17	)	(747	)	(764	)	(3,008	)
			548,460	914,492	4,334,420	516,835		931,767		4,833,980		5,765,747		990,280

(1) Depreciation of real estate is computed using the straight-line method over 40 years for buildings, 15 years for land improvements and shorter periods based on lease terms (generally 3 to 10 years) for tenant improvements.

Duke Realty Corporation Real Estate and Accumulated Depreciation December 31, 2007 (in thousands) Schedule 3

Development	Name	Building Type			Encumbrances	Initial Cost				Cost Capitalized Subsequent to Development or Acquisition			Gross Book Value 12/31/07					Accumulated Depreciation (1)			Year Constructed	Year Acquired
						Land			Buildings				Land/Land Imp	Bldgs/TI			Total
		Real Estate Assets												Accumulated Depreciation
		2007				2006				2005				2007				2006				2005
Balance at beginning of year		$	5,583,188			$	4,831,506			$	5,377,094			$	900,898			$	754,742			$	788,900
Acquisitions			194,072				836,146				272,141				—				—				—
Construction costs and tenant improvements			788,951				540,442				321,786				—				—				—
Depreciation expense			—				—				—				214,477				206,999				204,377
Acquisition of minority interest			—				—				—				—				—				—
			6,566,211				6,208,094				5,971,021				1,115,375				961,741				993,277
Deductions during year:
Cost of real estate sold or contributed			(726,860	)			(582,457	)			(1,077,172	)			(51,491	)			(18,660	)			(179,848	)
Impairment Allowance			—				(266	)			(3,656	)			—				—				—
Write-off of fully amortized assets			(73,604	)			(42,183	)			(58,687	)			(73,604	)			(42,183	)			(58,687	)
Balance at end of year		$	5,765,747			$	5,583,188			$	4,831,506			$	990,280			$	900,898			$	754,742