Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 29, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 1-9044 | |
Entity Registrant Name | DUKE REALTY CORPORATION | |
Entity Central Index Key | 0000783280 | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-1740409 | |
Entity Address, Address Line One | 8711 River Crossing Boulevard | |
Entity Address, City or Town | Indianapolis, | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46240 | |
City Area Code | (317) | |
Local Phone Number | 808-6000 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | DRE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 370,561,785 | |
Duke Realty Limited Partnership [Member] | ||
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | DUKE REALTY LIMITED PARTNERSHIP | |
Entity Central Index Key | 0001003410 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Real Estate Assets | $ 8,293,907 | $ 7,993,377 |
Construction in progress | 584,138 | 550,926 |
Investments in and advances to unconsolidated joint ventures | 133,795 | 133,074 |
Undeveloped land | 350,226 | 254,537 |
Real estate investment property, at cost, total | 9,362,066 | 8,931,914 |
Accumulated depreciation | (1,590,546) | (1,480,461) |
Net real estate investments | 7,771,520 | 7,451,453 |
Real estate investments and other assets held-for-sale | 0 | 18,463 |
Cash and cash equivalents | 29,870 | 110,891 |
Accounts receivable | 16,869 | 20,349 |
Straight-line rent receivable | 138,251 | 129,344 |
Receivables on construction contracts, including retentions | 53,769 | 25,607 |
Deferred leasing and other costs, net of accumulated amortization | 314,715 | 320,444 |
Restricted cash held in escrow for like kind exchange | 0 | 1,673 |
Notes receivable from property sales | 0 | 110,000 |
Other escrow deposits and other assets | 242,015 | 232,338 |
Total Assets | 8,567,009 | 8,420,562 |
LIABILITIES AND EQUITY | ||
Secured debt, net of deferred financing costs | 50,274 | 34,023 |
Unsecured debt, net of deferred financing costs | 3,024,912 | 2,880,742 |
Long-term debt, total | 3,075,186 | 2,914,765 |
Liabilities related to real estate investments held-for-sale | 0 | 887 |
Construction payables and amounts due subcontractors, including retentions | 111,844 | 68,840 |
Accrued real estate taxes | 79,204 | 69,042 |
Accrued interest | 15,450 | 14,181 |
Other liabilities | 181,978 | 223,680 |
Tenant security deposits and prepaid rents | 45,931 | 48,907 |
Total Liabilities | 3,509,593 | 3,340,302 |
Equity | ||
Common shares | 3,704 | 3,680 |
Additional paid-in capital | 5,607,897 | 5,525,463 |
Accumulated Other Comprehensive Loss | (33,346) | (35,036) |
Distributions in excess of net income | (590,435) | (475,992) |
Total shareholders' equity | 4,987,820 | 5,018,115 |
Noncontrolling interests | 69,596 | 62,145 |
Total Equity | 5,057,416 | 5,080,260 |
Total Liabilities and Equity | 8,567,009 | 8,420,562 |
Duke Realty Limited Partnership [Member] | ||
ASSETS | ||
Real Estate Assets | 8,293,907 | 7,993,377 |
Construction in progress | 584,138 | 550,926 |
Investments in and advances to unconsolidated joint ventures | 133,795 | 133,074 |
Undeveloped land | 350,226 | 254,537 |
Real estate investment property, at cost, total | 9,362,066 | 8,931,914 |
Accumulated depreciation | (1,590,546) | (1,480,461) |
Net real estate investments | 7,771,520 | 7,451,453 |
Real estate investments and other assets held-for-sale | 0 | 18,463 |
Cash and cash equivalents | 29,870 | 110,891 |
Accounts receivable | 16,869 | 20,349 |
Straight-line rent receivable | 138,251 | 129,344 |
Receivables on construction contracts, including retentions | 53,769 | 25,607 |
Deferred leasing and other costs, net of accumulated amortization | 314,715 | 320,444 |
Restricted cash held in escrow for like kind exchange | 0 | 1,673 |
Notes receivable from property sales | 0 | 110,000 |
Other escrow deposits and other assets | 242,015 | 232,338 |
Total Assets | 8,567,009 | 8,420,562 |
LIABILITIES AND EQUITY | ||
Secured debt, net of deferred financing costs | 50,274 | 34,023 |
Unsecured debt, net of deferred financing costs | 3,024,912 | 2,880,742 |
Long-term debt, total | 3,075,186 | 2,914,765 |
Liabilities related to real estate investments held-for-sale | 0 | 887 |
Construction payables and amounts due subcontractors, including retentions | 111,844 | 68,840 |
Accrued real estate taxes | 79,204 | 69,042 |
Accrued interest | 15,450 | 14,181 |
Other liabilities | 181,978 | 223,680 |
Tenant security deposits and prepaid rents | 45,931 | 48,907 |
Total Liabilities | 3,509,593 | 3,340,302 |
Equity | ||
Common equity | 5,021,166 | 5,053,151 |
Limited Partners' common equity | 64,948 | 57,575 |
Accumulated Other Comprehensive Loss | (33,346) | (35,036) |
Total partners' equity | 5,052,768 | 5,075,690 |
Noncontrolling interests | 4,648 | 4,570 |
Total Equity | 5,057,416 | 5,080,260 |
Total Liabilities and Equity | $ 8,567,009 | $ 8,420,562 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred leasing and other costs, accumulated amortization | $ 211,458 | $ 203,857 |
Debt Issuance Costs, Net | $ 34,191 | $ 19,422 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 600,000,000 | 600,000,000 |
Common shares, shares issued | 370,366,000 | 367,950,000 |
Common shares, shares outstanding | 370,366,000 | 367,950,000 |
Duke Realty Limited Partnership [Member] | ||
Deferred leasing and other costs, accumulated amortization | $ 211,458 | $ 203,857 |
Common equity, General Partner Units issued | 370,366,000 | 367,950,000 |
Common equity, General Partner Units outstanding | 370,366,000 | 367,950,000 |
Limited Partner Units issued | 3,330,000 | 3,029,000 |
Limited Partner Units outstanding | 3,330,000 | 3,029,000 |
Secured Debt [Member] | ||
Debt Issuance Costs, Net | $ 363 | $ 164 |
Secured Debt [Member] | Duke Realty Limited Partnership [Member] | ||
Debt Issuance Costs, Net | 363 | 164 |
Unsecured Debt [Member] | ||
Debt Issuance Costs, Net | 33,828 | 19,258 |
Unsecured Debt [Member] | Duke Realty Limited Partnership [Member] | ||
Debt Issuance Costs, Net | $ 33,828 | $ 19,258 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Rental and related revenue | $ 226,374 | $ 213,107 | $ 445,129 | $ 423,072 |
General contractor and service fee revenue | 12,137 | 23,919 | 19,751 | 78,883 |
Revenues, total | 238,511 | 237,026 | 464,880 | 501,955 |
Expenses: | ||||
Rental expenses | 17,557 | 17,597 | 36,400 | 38,265 |
Real estate taxes | 36,763 | 32,375 | 73,490 | 64,817 |
General contractor and other services expenses | 10,406 | 23,189 | 16,974 | 75,775 |
Depreciation and amortization | 86,704 | 83,004 | 172,063 | 158,996 |
Costs and expenses, total | 151,430 | 156,165 | 298,927 | 337,853 |
Other operating activities: | ||||
Equity in earnings of unconsolidated joint ventures | 2,396 | 4,143 | 4,935 | 8,858 |
Gain on sale of properties | 0 | 30,592 | 8,937 | 30,429 |
Gain on land sales | 6,070 | 1,950 | 6,205 | 2,700 |
Other operating expenses | (1,546) | (1,518) | (2,658) | (3,641) |
Impairment charges | 0 | 0 | (5,626) | 0 |
Non-incremental costs related to successful leases | (4,034) | (3,447) | (6,559) | (5,603) |
General and administrative expenses | (13,606) | (13,420) | (35,369) | (35,403) |
Other Operating Activities, Net | (10,720) | 18,300 | (30,135) | (2,660) |
Operating income | 76,361 | 99,161 | 135,818 | 161,442 |
Other income (expenses): | ||||
Interest and other income, net | 216 | 2,534 | 1,611 | 5,292 |
Interest expense | (22,841) | (23,510) | (46,335) | (45,642) |
Loss on debt extinguishment | (14,972) | 0 | (32,778) | (13) |
Gain on involuntary conversion | 1,283 | 0 | 1,283 | 2,259 |
Income from continuing operations before income taxes | 40,047 | 78,185 | 59,599 | 123,338 |
Income tax benefit (expense) | 150 | (6,616) | 210 | (7,001) |
Income from continuing operations | 40,197 | 71,569 | 59,809 | 116,337 |
Discontinued operations: | ||||
Gain on sale of properties | 23 | 99 | 71 | 254 |
Income from discontinued operations | 23 | 99 | 71 | 254 |
Net income | 40,220 | 71,668 | 59,880 | 116,591 |
Net income attributable to noncontrolling interests | (400) | (615) | (604) | (987) |
Net income attributable to common shareholders | $ 39,820 | $ 71,053 | $ 59,276 | $ 115,604 |
Basic net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.11 | $ 0.20 | $ 0.16 | $ 0.32 |
Diluted net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.11 | $ 0.20 | $ 0.16 | $ 0.32 |
Weighted average number of common shares/units outstanding | 368,836 | 359,681 | 368,513 | 359,412 |
Weighted average number of common shares/units and potential dilutive securities | 372,573 | 362,926 | 372,197 | 362,615 |
Comprehensive income: | ||||
Net income | $ 40,220 | $ 71,668 | $ 59,880 | $ 116,591 |
Unrealized losses on interest rate swap contracts | 0 | (14,699) | 0 | (24,041) |
Amortization of interest rate swap contracts | 889 | 0 | 1,690 | 0 |
Comprehensive income | 41,109 | 56,969 | 61,570 | 92,550 |
Duke Realty Limited Partnership [Member] | ||||
Revenues: | ||||
Rental and related revenue | 226,374 | 213,107 | 445,129 | 423,072 |
General contractor and service fee revenue | 12,137 | 23,919 | 19,751 | 78,883 |
Revenues, total | 238,511 | 237,026 | 464,880 | 501,955 |
Expenses: | ||||
Rental expenses | 17,557 | 17,597 | 36,400 | 38,265 |
Real estate taxes | 36,763 | 32,375 | 73,490 | 64,817 |
General contractor and other services expenses | 10,406 | 23,189 | 16,974 | 75,775 |
Depreciation and amortization | 86,704 | 83,004 | 172,063 | 158,996 |
Costs and expenses, total | 151,430 | 156,165 | 298,927 | 337,853 |
Other operating activities: | ||||
Equity in earnings of unconsolidated joint ventures | 2,396 | 4,143 | 4,935 | 8,858 |
Gain on sale of properties | 0 | 30,592 | 8,937 | 30,429 |
Gain on land sales | 6,070 | 1,950 | 6,205 | 2,700 |
Other operating expenses | (1,546) | (1,518) | (2,658) | (3,641) |
Impairment charges | 0 | 0 | (5,626) | 0 |
Non-incremental costs related to successful leases | (4,034) | (3,447) | (6,559) | (5,603) |
General and administrative expenses | (13,606) | (13,420) | (35,369) | (35,403) |
Other Operating Activities, Net | (10,720) | 18,300 | (30,135) | (2,660) |
Operating income | 76,361 | 99,161 | 135,818 | 161,442 |
Other income (expenses): | ||||
Interest and other income, net | 216 | 2,534 | 1,611 | 5,292 |
Interest expense | (22,841) | (23,510) | (46,335) | (45,642) |
Loss on debt extinguishment | (14,972) | 0 | (32,778) | (13) |
Gain on involuntary conversion | 1,283 | 0 | 1,283 | 2,259 |
Income from continuing operations before income taxes | 40,047 | 78,185 | 59,599 | 123,338 |
Income tax benefit (expense) | 150 | (6,616) | 210 | (7,001) |
Income from continuing operations | 40,197 | 71,569 | 59,809 | 116,337 |
Discontinued operations: | ||||
Gain on sale of properties | 23 | 99 | 71 | 254 |
Income from discontinued operations | 23 | 99 | 71 | 254 |
Net income | 40,220 | 71,668 | 59,880 | 116,591 |
Net (income) loss attributable to noncontrolling interests | (44) | 6 | (78) | 16 |
Net income attributable to common shareholders | $ 40,176 | $ 71,674 | $ 59,802 | $ 116,607 |
Basic net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.11 | $ 0.20 | $ 0.16 | $ 0.32 |
Diluted net income per common share/unit: | ||||
Continuing operations attributable to common shareholders/unitholders | $ 0.11 | $ 0.20 | $ 0.16 | $ 0.32 |
Weighted average number of common shares/units outstanding | 372,167 | 362,826 | 371,790 | 362,517 |
Weighted average number of common shares/units and potential dilutive securities | 372,573 | 362,926 | 372,197 | 362,615 |
Comprehensive income: | ||||
Net income | $ 40,220 | $ 71,668 | $ 59,880 | $ 116,591 |
Unrealized losses on interest rate swap contracts | 0 | (14,699) | 0 | (24,041) |
Amortization of interest rate swap contracts | 889 | 0 | 1,690 | 0 |
Comprehensive income | $ 41,109 | $ 56,969 | $ 61,570 | $ 92,550 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 59,880 | $ 116,591 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 143,922 | 131,878 |
Amortization of deferred leasing and other costs | 28,141 | 27,118 |
Amortization of deferred financing costs | 4,477 | 3,121 |
Straight-line rental income and expense, net | (8,476) | (10,466) |
Impairment charges | 5,626 | 0 |
Loss on debt extinguishment | 32,778 | 13 |
Gain on involuntary conversion | (1,283) | (2,259) |
Gains on land and depreciated property sales | (15,213) | (33,383) |
Third-party construction contracts, net | (3,717) | 15,645 |
Other accrued revenues and expenses, net | 11,460 | 10,021 |
Equity in earnings in excess of operating distributions received from unconsolidated joint ventures | 3,563 | (487) |
Net cash provided by operating activities | 261,158 | 257,792 |
Cash flows from investing activities: | ||
Development of real estate investments | (333,212) | (205,315) |
Acquisition of buildings and related intangible assets | 0 | 108,201 |
Acquisition of land and other real estate assets | (95,859) | (200,872) |
Second generation tenant improvements, leasing costs and building improvements | (17,062) | (20,463) |
Other deferred leasing costs | (17,306) | (11,152) |
Other assets | (10,289) | (7,224) |
Proceeds from the repayments of notes receivable from property sales | 110,000 | 130,000 |
Proceeds from land and depreciated property sales, net | 34,509 | 97,526 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 13 | 0 |
Capital contributions and advances to unconsolidated joint ventures | (4,833) | (5,962) |
Net cash used for investing activities | (334,039) | (331,663) |
Cash flows from financing activities: | ||
Proceeds from issuance of common shares, net | 76,678 | 42,128 |
Proceeds from unsecured debt | 663,123 | 0 |
Payments on unsecured debt | (546,972) | 0 |
Proceeds from secured notes payable | 18,400 | 0 |
Payments on secured indebtedness including principal amortization | (1,906) | (43,502) |
Borrowings on line of credit, net | 0 | 222,000 |
Distributions to common shareholders/unitholders | (173,131) | (154,550) |
Distributions to noncontrolling Interest | (1,566) | (1,180) |
Tax payments on stock-based compensation awards | (4,051) | (5,469) |
Change in book cash overdrafts | (14,444) | 15,874 |
Other Financing Activities | 289 | (9,920) |
Deferred financing costs | (6,374) | 0 |
Net cash provided by financing activities | 10,046 | 65,381 |
Net decrease in cash, cash equivalents and restricted cash | (62,835) | (8,490) |
Cash, cash equivalents and restricted cash at beginning of period | 121,431 | 25,517 |
Cash, cash equivalents and restricted cash at end of period | 58,596 | 17,027 |
Noncash activities: | ||
Liabilities and right-of-use assets - operating leases | 1,443 | 37,810 |
Duke Realty Limited Partnership [Member] | ||
Cash flows from operating activities: | ||
Net income | 59,880 | 116,591 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of buildings and tenant improvements | 143,922 | 131,878 |
Amortization of deferred leasing and other costs | 28,141 | 27,118 |
Amortization of deferred financing costs | 4,477 | 3,121 |
Straight-line rental income and expense, net | (8,476) | (10,466) |
Impairment charges | 5,626 | 0 |
Loss on debt extinguishment | 32,778 | 13 |
Gain on involuntary conversion | (1,283) | (2,259) |
Gains on land and depreciated property sales | (15,213) | (33,383) |
Third-party construction contracts, net | (3,717) | 15,645 |
Other accrued revenues and expenses, net | 11,460 | 10,021 |
Equity in earnings in excess of operating distributions received from unconsolidated joint ventures | 3,563 | (487) |
Net cash provided by operating activities | 261,158 | 257,792 |
Cash flows from investing activities: | ||
Development of real estate investments | (333,212) | (205,315) |
Acquisition of buildings and related intangible assets | 0 | 108,201 |
Acquisition of land and other real estate assets | (95,859) | (200,872) |
Second generation tenant improvements, leasing costs and building improvements | (17,062) | (20,463) |
Other deferred leasing costs | (17,306) | (11,152) |
Other assets | (10,289) | (7,224) |
Proceeds from the repayments of notes receivable from property sales | 110,000 | 130,000 |
Proceeds from land and depreciated property sales, net | 34,509 | 97,526 |
Proceeds from Equity Method Investment, Distribution, Return of Capital | 13 | 0 |
Capital contributions and advances to unconsolidated joint ventures | (4,833) | (5,962) |
Net cash used for investing activities | (334,039) | (331,663) |
Cash flows from financing activities: | ||
Contributions from the General Partner | 76,678 | 42,128 |
Proceeds from unsecured debt | 663,123 | 0 |
Payments on unsecured debt | (546,972) | 0 |
Proceeds from secured notes payable | 18,400 | 0 |
Payments on secured indebtedness including principal amortization | (1,906) | (43,502) |
Borrowings on line of credit, net | 0 | 222,000 |
Distributions to common shareholders/unitholders | (174,697) | (155,903) |
Distributions to noncontrolling Interest | 0 | 173 |
Tax payments on stock-based compensation awards | (4,051) | (5,469) |
Change in book cash overdrafts | (14,444) | 15,874 |
Other Financing Activities | 289 | (9,920) |
Deferred financing costs | (6,374) | 0 |
Net cash provided by financing activities | 10,046 | 65,381 |
Net decrease in cash, cash equivalents and restricted cash | (62,835) | (8,490) |
Cash, cash equivalents and restricted cash at beginning of period | 121,431 | 25,517 |
Cash, cash equivalents and restricted cash at end of period | 58,596 | 17,027 |
Noncash activities: | ||
Liabilities and right-of-use assets - operating leases | $ 1,443 | $ 37,810 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Distributions in Excess of Net Income [Member] | Non-controlling Interest [Member] | Duke Realty Limited Partnership [Member] | Duke Realty Limited Partnership [Member]Common Stock [Member] | Duke Realty Limited Partnership [Member]Limited Partners' Common Equity [Member] | Duke Realty Limited Partnership [Member]AOCI Attributable to Parent [Member] | Duke Realty Limited Partnership [Member]Non-controlling Interest [Member] | Duke Realty Limited Partnership [Member]Stockholders' Equity, Total [Member] |
Beginning Balance - General Partner at Dec. 31, 2018 | $ 4,713,243 | $ 3,589 | $ 5,244,375 | $ (4,676) | $ (585,087) | $ 55,042 | ||||||
Beginning Balance - Partnership at Dec. 31, 2018 | $ 4,713,243 | $ 4,662,877 | $ 50,585 | $ (4,676) | $ 4,457 | $ 4,708,786 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 116,591 | 115,604 | 987 | 116,591 | 115,604 | 1,003 | (16) | 116,607 | ||||
Other comprehensive income | 0 | 0 | ||||||||||
Other comprehensive loss | (24,041) | (24,041) | (24,041) | (24,041) | (24,041) | |||||||
Issuance of common shares | 42,128 | 13 | 42,115 | |||||||||
Capital contribution from the General Partner | 42,128 | 42,128 | 42,128 | |||||||||
Stock based compensation plan activity | 9,930 | 4 | 3,892 | (641) | 6,675 | 9,930 | 3,255 | 6,675 | 9,930 | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 312 | 312 | 312 | 312 | ||||||||
Distributions to Partners | (155,903) | (154,550) | (1,353) | (155,903) | ||||||||
Distributions to common shareholders | (154,550) | (154,550) | ||||||||||
Distributions to noncontrolling interests | (1,492) | (1,492) | (139) | (139) | ||||||||
Ending Balance - General Partner at Jun. 30, 2019 | 4,702,121 | 3,606 | 5,290,382 | (28,717) | (624,674) | 61,524 | ||||||
Ending Balance - Partnership at Jun. 30, 2019 | 4,702,121 | 4,669,314 | 56,910 | (28,717) | 4,614 | 4,697,507 | ||||||
Beginning Balance - General Partner at Mar. 31, 2019 | 4,681,171 | 3,594 | 5,250,157 | (14,018) | (618,123) | 59,561 | ||||||
Beginning Balance - Partnership at Mar. 31, 2019 | 4,681,171 | 4,635,628 | 54,941 | (14,018) | 4,620 | 4,676,551 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 71,668 | 71,053 | 615 | 71,668 | 71,053 | 621 | (6) | 71,674 | ||||
Other comprehensive income | 0 | 0 | ||||||||||
Other comprehensive loss | (14,699) | (14,699) | (14,699) | (14,699) | (14,699) | |||||||
Issuance of common shares | 37,636 | 12 | 37,624 | |||||||||
Capital contribution from the General Partner | 37,636 | 37,636 | 37,636 | |||||||||
Stock based compensation plan activity | 4,333 | 0 | 2,601 | (291) | 2,023 | 4,333 | 2,310 | 2,023 | 4,333 | |||
Distributions to Partners | (77,988) | (77,313) | (675) | (77,988) | ||||||||
Distributions to common shareholders | (77,313) | (77,313) | ||||||||||
Distributions to noncontrolling interests | (675) | (675) | ||||||||||
Ending Balance - General Partner at Jun. 30, 2019 | 4,702,121 | 3,606 | 5,290,382 | (28,717) | (624,674) | 61,524 | ||||||
Ending Balance - Partnership at Jun. 30, 2019 | 4,702,121 | 4,669,314 | 56,910 | (28,717) | 4,614 | 4,697,507 | ||||||
Beginning Balance - General Partner at Dec. 31, 2019 | 5,080,260 | 3,680 | 5,525,463 | (35,036) | (475,992) | 62,145 | ||||||
Beginning Balance - Partnership at Dec. 31, 2019 | 5,080,260 | 5,053,151 | 57,575 | (35,036) | 4,570 | 5,075,690 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 59,880 | 59,276 | 604 | 59,880 | 59,276 | 526 | 78 | 59,802 | ||||
Other comprehensive income | 1,690 | 1,690 | 1,690 | 1,690 | 1,690 | |||||||
Other comprehensive loss | 0 | 0 | ||||||||||
Issuance of common shares | 76,678 | 21 | 76,657 | |||||||||
Capital contribution from the General Partner | 76,678 | 76,678 | 76,678 | |||||||||
Stock based compensation plan activity | 13,605 | 3 | 5,777 | (588) | 8,413 | 13,605 | 5,192 | 8,413 | 13,605 | |||
Distributions to Partners | (174,697) | (173,131) | (1,566) | (174,697) | ||||||||
Distributions to common shareholders | (173,131) | (173,131) | ||||||||||
Distributions to noncontrolling interests | (1,566) | (1,566) | ||||||||||
Ending Balance - General Partner at Jun. 30, 2020 | 5,057,416 | 3,704 | 5,607,897 | (33,346) | (590,435) | 69,596 | ||||||
Ending Balance - Partnership at Jun. 30, 2020 | 5,057,416 | 5,021,166 | 64,948 | (33,346) | 4,648 | 5,052,768 | ||||||
Beginning Balance - General Partner at Mar. 31, 2020 | 5,027,062 | 3,684 | 5,533,806 | (34,235) | (543,412) | 67,219 | ||||||
Beginning Balance - Partnership at Mar. 31, 2020 | 5,027,062 | 4,994,078 | 62,615 | (34,235) | 4,604 | 5,022,458 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net Income | 40,220 | 39,820 | 400 | 40,220 | 39,820 | 356 | 44 | 40,176 | ||||
Other comprehensive income | 889 | 889 | 889 | 889 | 889 | |||||||
Other comprehensive loss | 0 | 0 | ||||||||||
Issuance of common shares | 71,213 | 20 | 71,193 | |||||||||
Capital contribution from the General Partner | 71,213 | 71,213 | 71,213 | |||||||||
Stock based compensation plan activity | 5,384 | 0 | 2,898 | (274) | 2,760 | 5,384 | 2,624 | 2,760 | 5,384 | |||
Distributions to Partners | (87,352) | (86,569) | (783) | (87,352) | ||||||||
Distributions to common shareholders | (86,569) | (86,569) | ||||||||||
Distributions to noncontrolling interests | (783) | (783) | ||||||||||
Ending Balance - General Partner at Jun. 30, 2020 | $ 5,057,416 | $ 3,704 | $ 5,607,897 | $ (33,346) | $ (590,435) | $ 69,596 | ||||||
Ending Balance - Partnership at Jun. 30, 2020 | $ 5,057,416 | $ 5,021,166 | $ 64,948 | $ (33,346) | $ 4,648 | $ 5,052,768 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Distributions to common shareholders, per share | $ 0.235 | $ 0.215 | $ 0.470 | $ 0.430 |
Duke Realty Limited Partnership [Member] | ||||
Distributions to Partners, per Common Unit | $ 0.235 | $ 0.215 | $ 0.470 | $ 0.430 |
General Basis of Presentation
General Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Basis of Presentation | General Basis of Presentation The interim consolidated financial statements included herein have been prepared by the General Partner and the Partnership. The 2019 year-end consolidated balance sheet data included in this Report was derived from the audited financial statements in the combined Annual Report on Form 10-K of the General Partner and the Partnership for the year ended December 31, 2019 (the "2019 Annual Report"), but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). The financial statements have been prepared in accordance with GAAP for interim financial information and in accordance with Rule 10-01 of Regulation S-X of the Securities Exchange Act of 1934, as amended. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and revenue and expenses during the reporting period. Our actual results could differ from those estimates and assumptions. These financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements and notes thereto included in the 2019 Annual Report. The General Partner was formed in 1985, and we believe that it qualifies as a REIT under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"). The Partnership was formed on October 4, 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. The General Partner is the sole general partner of the Partnership, owning approximately 99.1% of the Common Units at June 30, 2020. The remaining 0.9% of the Common Units are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership. The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same. Limited partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Fifth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases Lease Income Our leases generally include scheduled rent increases, but do not include variable payments based on indexes. Our rental revenue is primarily based on fixed, non-cancelable leases. Our variable rental revenue primarily consists of amounts recovered from lessees for property tax, insurance and common area maintenance ("CAM"). If we conclude that collection of lease payments are not probable, any difference between the revenue that would have been recognized under the straight-line method and the lease payments that have been collected is recognized as a current period adjustment to rental revenues. Any other changes in collectability reserves for leases not subject to the collectability constraint are also recorded as a current period adjustment to rental revenues. All revenues related to lease and lease-related services are included in, and comprise substantially all of, the caption "Rental and Related Revenue" on the Consolidated Statements of Operations and Comprehensive Income. The components of Rental and Related Revenue are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Rental revenue - fixed payments $ 169,617 $ 161,483 $ 331,224 $ 318,157 Rental revenue - variable payments (1) 56,757 51,624 113,905 104,915 Rental and related revenue $ 226,374 $ 213,107 $ 445,129 $ 423,072 (1) Primarily includes tenant recoveries for real estate taxes, insurance and CAM. Accounting for Lease Concessions Granted in Connection with the COVID-19 Outbreak On April 8, 2020, the Financial Accounting Standard Board ("FASB") held a public meeting and shortly afterwards issued a question-and-answer ("Q&A") document which was intended to provide accounting relief for lease concessions related to the COVID-19 pandemic. The accounting relief permits an entity to choose to forgo the evaluation of the enforceable rights and obligations of a lease contract, which is a requirement of Accounting Standards Codification Topic 842, Leases ("ASC 842") , as long as the total rent payments after the lease concessions are substantially the same, or less than, the total payments previously required by the lease. An entity may account for COVID-19 related lease concessions either (i) as if they were part of the enforceable rights and obligations of the parties under the existing lease contract; or (ii) as a lease modification. To the extent that a rent concession is granted as a deferral of payments, but the total lease payments are substantially the same, lessors are allowed to account for the concession as if no change had been made to the original lease contract. Based on the Q&A, an entity is not required to account for all lease concessions related to the effects of the COVID-19 pandemic under one elected option, however, the entity is required to apply the elected option consistently to leases with similar characteristics and in similar circumstances. As of July 28, 2020, we have executed agreements with certain tenants allowing for the deferral of rental payments totaling $7.8 million. Some of these deferred amounts pertain to rents originally due subsequent to June 30, 2020. The substantial majority of these agreements required repayment of deferred amounts within twelve months of their execution. The rental deferral agreements that we have executed, where the revised payment terms require repayment of deferred amounts within twelve months of their execution, are eligible for the alternate accounting treatment allowed through the Q&A. We have elected to account for these deferred rental agreements as if the deferral of rental payments was an enforceable right in the original lease agreements. This accounting election resulted in us not modifying the pattern of revenue recognition for these leases, to the extent they are collectable, and all deferred amounts related to leases to which we are applying this accounting treatment are classified within Accounts Receivable on the June 30, 2020 Consolidated Balance Sheets. For deferred rental agreements where the revised terms do not require repayment of the full amount of deferred amounts within twelve months of their execution, even if such revised payment terms fall within the scope of the relief offered by the Q&A, we have continued to apply lease modification accounting as stipulated by ASC 842. Lessee Accounting As of June 30, 2020, our lease arrangements, where we are the lessee, primarily consisted of office and ground leases, which are classified as operating leases under ASC 842. A $40.8 million right-of-use asset related to these operating leases is included in Other Escrow Deposits and Other Assets, and a corresponding lease liability of $43.8 million, is included in Other Liabilities on our Consolidated Balance Sheets as of June 30, 2020, and represents the discounted value of future lease payments required under our lease agreements. In determining these amounts we elected an available practical expedient that allows us, as a lessee, to not separate lease and non-lease components. |
Reclassifications
Reclassifications | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Reclassifications | ReclassificationsThere have been no amounts in the accompanying consolidated financial statements for 2019 reclassified to conform to the 2020 consolidated financial statement presentation. |
Restricted Cash
Restricted Cash | 6 Months Ended |
Jun. 30, 2020 | |
Restricted Cash [Abstract] | |
Restricted Cash | Restricted Cash Restricted cash primarily consists of cash proceeds from dispositions but restricted only for qualifying like-kind exchange transactions and cash held in escrow related to acquisition and disposition holdbacks. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows (in thousands): June 30, 2020 December 31, 2019 Cash and cash equivalents $ 29,870 $ 110,891 Restricted cash held in escrow for like-kind exchange — 1,673 Restricted cash included in other escrow deposits and other assets 28,726 8,867 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 58,596 $ 121,431 |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Variable Interest Entities | Variable Interest Entities Partnership Due to the fact that the Limited Partners do not have kick out rights, or substantive participating rights, the Partnership is a variable interest entity ("VIE"). Because the General Partner holds majority ownership and exercises control over every aspect of the Partnership's operations, the General Partner has been determined as the primary beneficiary and, therefore, consolidates the Partnership. The assets and liabilities of the General Partner and the Partnership are substantially the same, as the General Partner does not have any significant assets other than its investment in the Partnership. All of the Company's debt is an obligation of the Partnership. Joint Ventures We have equity interests in unconsolidated joint ventures that primarily own and operate rental properties or hold land for development. We consolidate those joint ventures that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights and (iii) establish whether or not activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination. To the extent that we own interests in a VIE and we (i) are the sole entity that has the power to direct the activities of the VIE and (ii) have the obligation or rights to absorb the VIE's losses or receive its benefits, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. Consolidated joint ventures that are VIEs are not significant in any period presented in these consolidated financial statements. To the extent that our joint ventures do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and the other partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity. Consolidated joint ventures that are not VIEs are not significant in any period presented in these consolidated financial statements. There were no unconsolidated joint ventures, in which we have any recognized assets or liabilities or have retained any economic exposure to loss at June 30, 2020, that met the criteria to be considered VIEs. Our maximum loss exposure for guarantees of unconsolidated joint venture indebtedness, none of which relate to VIEs, totaled $59.9 million at June 30, 2020. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions and dispositions for the periods presented were completed in accordance with our strategy to reposition our investment concentration among the markets in which we operate and to increase our overall investments in quality industrial projects. Transaction costs related to asset acquisitions are capitalized and transaction costs related to business combinations and dispositions are expensed. Acquisitions We did not acquire any buildings during the six months ended June 30, 2020. We paid cash of $108.2 million for building acquisitions during the six months ended June 30, 2019 . Dispositions Dispositions of buildings and undeveloped land generated net cash proceeds of $34.5 million and $97.5 million during the six months ended June 30, 2020 and 2019, respectively. |
Indebtedness
Indebtedness | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness All debt is issued directly or indirectly by the Partnership. The General Partner does not have any indebtedness, but does guarantee some of the unsecured debt of the Partnership. The following table summarizes the book value and changes in the fair value of our debt (in thousands): Book Value at 12/31/2019 Book Value at 6/30/2020 Fair Value at 12/31/2019 Issuances and Payments/Payoffs Adjustments Fair Value at 6/30/2020 Fixed rate secured debt $ 32,287 $ 48,737 $ 34,547 $ 18,400 $ (1,906) $ (9,450) $ 41,591 Variable rate secured debt 1,900 1,900 1,900 — — — 1,900 Unsecured debt 2,900,000 3,058,740 3,045,485 675,000 (516,260) 143,342 3,347,567 Total $ 2,934,187 $ 3,109,377 $ 3,081,932 $ 693,400 $ (518,166) $ 133,892 $ 3,391,058 Less: Deferred financing costs 19,422 34,191 Total indebtedness as reported on the consolidated balance sheets $ 2,914,765 $ 3,075,186 Secured Debt Because our fixed rate secured debt is not actively traded in any marketplace, we utilized a discounted cash flow methodology to determine its fair value. Accordingly, we calculated fair value by applying an estimate of the current market rate to discount the debt's remaining contractual cash flows. Our estimate of a current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. The estimated market rates for all of our current fixed rate secured debt are between 2.20% and 2.90%, depending on the attributes of the specific loans. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our fixed rate secured debt was primarily based upon level 3 inputs. In February 2020, a consolidated joint venture obtained an $18.4 million secured loan from a third party financial institution, with a fixed annual interest rate of 3.41% and a maturity date of March 1, 2035. Unsecured Debt At June 30, 2020, all of our unsecured debt bore interest at fixed rates and primarily consisted of unsecured notes that are publicly traded. We utilized broker estimates in estimating the fair value of our fixed rate unsecured debt. Our unsecured notes are thinly traded and, in certain cases, the broker estimates were not based upon comparable transactions. The broker estimates took into account any recent trades within the same series of our fixed rate unsecured debt, comparisons to recent trades of other series of our fixed rate unsecured debt, trades of fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We reviewed these broker estimates for reasonableness and accuracy, considering whether the estimates were based upon market participant assumptions within the principal and most advantageous market and whether any other observable inputs would be more accurate indicators of fair value than the broker estimates. We concluded that the broker estimates were representative of fair value. We have determined that our estimation of the fair value of our fixed rate unsecured debt was primarily based upon level 3 inputs. The estimated trading values of our fixed rate unsecured debt, depending on the maturity and coupon rates, ranged from 99.00% to 136.00% of face value. In February 2020, we issued $325.0 million of senior unsecured notes bearing interest at a stated interest rate of 3.05% and maturing on March 1, 2050, at 97.35% of par value, resulting in an effective interest rate of 3.19%. Proceeds from the unsecured notes offering were primarily used to repay the $300.0 million of 4.38% senior unsecured notes due 2022. In connection with the early redemption of these notes, we recognized a loss of $17.8 million consisting of a repayment premium and write-off of deferred financing costs. In June 2020, we issued $350.0 million of senior unsecured notes bearing interest at a stated interest rate of 1.75% and maturing on July 1, 2030, at 99.07% of par value, resulting in an effective interest rate of 1.85%. Proceeds from the unsecured notes offering were primarily used to repurchase and cancel $216.3 million of 3.88% senior unsecured notes due 2022 pursuant to a tender offer completed by the Partnership in June 2020. In connection with the early cancellation of these notes, we recognized a loss of $15.0 million consisting of a repayment premium and write-off of deferred financing costs. The indentures (and related supplemental indentures) governing our outstanding series of unsecured notes also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such financial covenants at June 30, 2020. Unsecured Line of Credit Our unsecured line of credit at June 30, 2020 is described as follows (in thousands): Description Borrowing Maturity Date Outstanding Balance at June 30, 2020 Unsecured Line of Credit - Partnership $ 1,200,000 January 30, 2022 $ — The Partnership's unsecured line of credit has an interest rate on borrowings of LIBOR plus 0.875% and has a maturity date of January 30, 2022, with options to extend until January 30, 2023. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional $800.0 million, for a total of up to $2.00 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions. This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At June 30, 2020, we were in compliance with all financial covenants under this line of credit. To the extent there are outstanding borrowings, we utilize a discounted cash flow methodology in order to estimate the fair value of outstanding borrowings on our unsecured line of credit. To the extent that credit spreads have changed since the origination of the line of credit, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. This estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on any outstanding borrowings on the line of credit are the same. The current market rate is internally estimated and therefore is primarily based upon a level 3 input. |
Shareholder's Equity
Shareholder's Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders' Equity of the General Partner and Partners' Capital of the Partnership General Partner The General Partner has an at the market ("ATM") equity program that allows it to issue and sell its common shares through sales agents from time to time. The current ATM program provides for the sale of up to $400.0 million of shares of the General Partner's common stock. Actual sales under the ATM equity program depend on a variety of factors to be determined by the General Partner, including, among others, market conditions, the trading price of the General Partner’s common stock, determinations by the General Partner of the appropriate sources of funding and potential uses of funding available. During the six months ended June 30, 2020, the General Partner issued 2.0 million common shares pursuant to its ATM equity program, generating gross proceeds of $71.6 million and, after deducting commissions and other costs, net proceeds of $70.7 million. The proceeds from these sales were contributed to the Partnership and used to fund development activities. Partnership For each common share or preferred share that the General Partner issues, the Partnership issues a corresponding General Partner Unit or Preferred Unit, as applicable, to the General Partner in exchange for the contribution of the proceeds from the stock issuance. Similarly, when the General Partner redeems or repurchases common shares or preferred shares, the Partnership redeems the corresponding General Partner Units or Preferred Units held by the General Partner at the same price. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We provide property management, asset management, leasing, construction and other tenant-related services to unconsolidated joint ventures in which we have equity interests. We recorded the corresponding fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentage of these fees in the consolidated financial statements. The following table summarizes the fees earned from these joint ventures, prior to the elimination of our ownership percentage (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Management fees $ 396 $ 443 $ 744 $ 865 Leasing fees $ — $ 408 $ 451 $ 556 Construction and development fees $ 860 $ 1,742 $ 1,221 $ 3,938 |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Net Income per Common Share or Common UnitBasic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the weighted average number of common shares or Common Units outstanding for the period. Diluted net income per common share is computed by dividing the sum of net income attributable to common shareholders and the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive), less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of common shares outstanding and, to the extent they are dilutive, weighted average number of Limited Partner Units outstanding and any potential dilutive securities for the period. Diluted net income per Common Unit is computed by dividing the net income attributable to common unitholders, less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the period. The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General Partner Net income attributable to common shareholders $ 39,820 $ 71,053 $ 59,276 $ 115,604 Less: dividends on participating securities (356) (388) (712) (777) Basic net income attributable to common shareholders $ 39,464 $ 70,665 $ 58,564 $ 114,827 Add back dividends on dilutive participating securities — — — — Noncontrolling interest in earnings of common unitholders 356 621 526 1,003 Diluted net income attributable to common shareholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Weighted average number of common shares outstanding 368,836 359,681 368,513 359,412 Weighted average Limited Partner Units outstanding 3,331 3,145 3,277 3,105 Other potential dilutive shares 406 100 407 98 Weighted average number of common shares and potential dilutive securities 372,573 362,926 372,197 362,615 Partnership Net income attributable to common unitholders $ 40,176 $ 71,674 $ 59,802 $ 116,607 Less: distributions on participating securities (356) (388) (712) (777) Basic net income attributable to common unitholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Add back distributions on dilutive participating securities — — — — Diluted net income attributable to common unitholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Weighted average number of Common Units outstanding 372,167 362,826 371,790 362,517 Other potential dilutive units 406 100 407 98 Weighted average number of Common Units and potential dilutive securities 372,573 362,926 372,197 362,615 The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General Partner and Partnership Other potential dilutive shares or units: Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans — — — — Anti-dilutive outstanding participating securities 1,660 1,960 1,660 1,960 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting Reportable Segments As of June 30, 2020, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. Our ongoing investments in new real estate investments are determined largely upon anticipated geographic trends in supply and demand for industrial buildings, as well as the real estate needs of our major tenants that operate on a national level. Our strategic initiatives and our allocation of resources have been historically based upon allocation among product types, which was consistent with our designation of reportable segments, and after having sold nearly all of our office and medical office properties we continue to increase our investment in industrial properties and treat them as a single operating and reportable segment. Properties not included in our reportable segments, because they are not industrial properties and do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our remaining office properties and medical office property at June 30, 2020. The operations of our industrial properties, as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations." Our second reportable segment consists of various real estate services such as property management, asset management, maintenance, leasing, development, general contracting and construction management to third-party property owners and joint ventures, and is collectively referred to as "Service Operations." The Service Operations segment is identified as one single operating segment because the lowest level of financial results reviewed by our chief operating decision maker are the results for the Service Operations segment in total. Further, our reportable segments are managed separately because each segment requires different operating strategies and management expertise . Revenues by Reportable Segment The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues Rental Operations: Industrial $ 224,472 $ 211,004 $ 441,424 $ 419,407 Non-reportable Rental Operations 1,383 1,478 2,911 2,930 Service Operations 12,137 23,919 19,751 78,883 Total segment revenues 237,992 236,401 464,086 501,220 Other revenue 519 625 794 735 Consolidated revenue $ 238,511 $ 237,026 $ 464,880 $ 501,955 Supplemental Performance Measure Property-level net operating income on a cash basis ("PNOI") is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments. We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations"). The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies. The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 PNOI Industrial $ 160,966 $ 149,369 $ 317,305 $ 292,251 Non-reportable Rental Operations 1,053 862 2,872 1,740 PNOI, excluding all sold properties 162,019 150,231 320,177 293,991 PNOI from sold properties included in continuing operations (3) 5,952 111 11,944 PNOI, continuing operations $ 162,016 $ 156,183 $ 320,288 $ 305,935 Earnings from Service Operations 1,731 730 2,777 3,108 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 6,774 4,762 8,476 10,466 Revenues related to lease buyouts 2,033 — 2,426 19 Amortization of lease concessions and above and below market rents 1,540 1,542 4,097 2,804 Intercompany rents and other adjusting items (703) 60 (375) 103 Non-Segment Items: Equity in earnings of unconsolidated joint ventures 2,396 4,143 4,935 8,858 Interest expense (22,841) (23,510) (46,335) (45,642) Depreciation and amortization expense (86,704) (83,004) (172,063) (158,996) Gain on sale of properties — 30,592 8,937 30,429 Impairment charges — — (5,626) — Interest and other income, net 216 2,534 1,611 5,292 General and administrative expenses (13,606) (13,420) (35,369) (35,403) Gain on land sales 6,070 1,950 6,205 2,700 Other operating expenses (1,546) (1,518) (2,658) (3,641) Loss on extinguishment of debt (14,972) — (32,778) (13) Gain on involuntary conversion 1,283 — 1,283 2,259 Non-incremental costs related to successful leases (4,034) (3,447) (6,559) (5,603) Other non-segment revenues and expenses, net 394 588 327 663 Income from continuing operations before income taxes $ 40,047 $ 78,185 $ 59,599 $ 123,338 |
Real Estate Assets, Discontinue
Real Estate Assets, Discontinued Operations and Assets Held for Sale | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations and Assets Held for Sale | Real Estate Assets, Discontinued Operations and Assets Held-for-Sale Real Estate Assets Real estate assets, excluding assets held-for-sale, consisted of the following (in thousands): June 30, 2020 December 31, 2019 Buildings and tenant improvements $ 5,541,171 $ 5,295,336 Land and improvements 2,617,697 2,532,541 Other real estate investments (1) 135,039 165,500 Real estate assets $ 8,293,907 $ 7,993,377 (1) Consists of underutilized in-fill sites, which may have had buildings/structures on site when we acquired them, that are either (i) under lease to a third party and, after the lease ends, are expected to be redeveloped or will require significant capital expenditures before re-leasing; or (ii) industrial/logistics properties that we intend to re-lease after significant retrofitting and/or environmental remediation is completed. Discontinued Operations The following table illustrates the number of sold or held-for-sale properties in this report, all of which were excluded from discontinued operations: Held-for-Sale at June 30, 2020 Sold Year-to-Date in 2020 Sold in 2019 Total Properties sold or classified as held-for-sale — 1 28 29 Allocation of Noncontrolling Interests - General Partner The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Income from continuing operations attributable to common shareholders $ 39,797 $ 70,955 $ 59,206 $ 115,352 Income from discontinued operations attributable to common shareholders 23 98 70 252 Net income attributable to common shareholders $ 39,820 $ 71,053 $ 59,276 $ 115,604 Allocation of Noncontrolling Interests - Partnership Substantially all of the income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders. Assets Held-for-Sale The following table illustrates aggregate balance sheet information for assets held-for-sale (in thousands): Held-for-Sale Properties Included in Continuing Operations June 30, 2020 December 31, 2019 Land and improvements $ — $ 4,561 Buildings and tenant improvements — 18,840 Undeveloped land — — Accumulated depreciation — (7,132) Deferred leasing and other costs, net — 2,100 Other assets — 94 Total assets held-for-sale $ — $ 18,463 Total liabilities related to assets held-for-sale $ — $ 887 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Declaration of Dividends/Distributions The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on July 29, 2020: Class of stock/units Quarterly Amount per Share or Unit Record Date Payment Date Common - Quarterly $0.235 August 14, 2020 August 31, 2020 COVID-19 Pandemic We are closely monitoring the impact of the COVID-19 pandemic on all aspects of our business and geographies, including how it will impact our tenants and business partners. Through July 28, 2020, we have collecte d over 97.0% of originally scheduled July rent payments while 2.6% of originally scheduled July rent payments have been deferred to later periods pursuant to executed agreements with tenants. |
Lease Income (Tables)
Lease Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | The components of Rental and Related Revenue are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Rental revenue - fixed payments $ 169,617 $ 161,483 $ 331,224 $ 318,157 Rental revenue - variable payments (1) 56,757 51,624 113,905 104,915 Rental and related revenue $ 226,374 $ 213,107 $ 445,129 $ 423,072 (1) Primarily includes tenant recoveries for real estate taxes, insurance and CAM. |
Restricted Cash (Tables)
Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Restricted Cash [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows (in thousands): June 30, 2020 December 31, 2019 Cash and cash equivalents $ 29,870 $ 110,891 Restricted cash held in escrow for like-kind exchange — 1,673 Restricted cash included in other escrow deposits and other assets 28,726 8,867 Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows $ 58,596 $ 121,431 |
Indebtedness (Tables)
Indebtedness (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Fair Value, Liabilities Measured on a Recurring Basis, Disclosure Only | The following table summarizes the book value and changes in the fair value of our debt (in thousands): Book Value at 12/31/2019 Book Value at 6/30/2020 Fair Value at 12/31/2019 Issuances and Payments/Payoffs Adjustments Fair Value at 6/30/2020 Fixed rate secured debt $ 32,287 $ 48,737 $ 34,547 $ 18,400 $ (1,906) $ (9,450) $ 41,591 Variable rate secured debt 1,900 1,900 1,900 — — — 1,900 Unsecured debt 2,900,000 3,058,740 3,045,485 675,000 (516,260) 143,342 3,347,567 Total $ 2,934,187 $ 3,109,377 $ 3,081,932 $ 693,400 $ (518,166) $ 133,892 $ 3,391,058 Less: Deferred financing costs 19,422 34,191 Total indebtedness as reported on the consolidated balance sheets $ 2,914,765 $ 3,075,186 |
Unsecured Line of Credit | Our unsecured line of credit at June 30, 2020 is described as follows (in thousands): Description Borrowing Maturity Date Outstanding Balance at June 30, 2020 Unsecured Line of Credit - Partnership $ 1,200,000 January 30, 2022 $ — |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Fees Earned from Related Parties | The following table summarizes the fees earned from these joint ventures, prior to the elimination of our ownership percentage (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Management fees $ 396 $ 443 $ 744 $ 865 Leasing fees $ — $ 408 $ 451 $ 556 Construction and development fees $ 860 $ 1,742 $ 1,221 $ 3,938 |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciling the Components of Basic and Diluted Net Income (Loss) per Common Share | The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General Partner Net income attributable to common shareholders $ 39,820 $ 71,053 $ 59,276 $ 115,604 Less: dividends on participating securities (356) (388) (712) (777) Basic net income attributable to common shareholders $ 39,464 $ 70,665 $ 58,564 $ 114,827 Add back dividends on dilutive participating securities — — — — Noncontrolling interest in earnings of common unitholders 356 621 526 1,003 Diluted net income attributable to common shareholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Weighted average number of common shares outstanding 368,836 359,681 368,513 359,412 Weighted average Limited Partner Units outstanding 3,331 3,145 3,277 3,105 Other potential dilutive shares 406 100 407 98 Weighted average number of common shares and potential dilutive securities 372,573 362,926 372,197 362,615 Partnership Net income attributable to common unitholders $ 40,176 $ 71,674 $ 59,802 $ 116,607 Less: distributions on participating securities (356) (388) (712) (777) Basic net income attributable to common unitholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Add back distributions on dilutive participating securities — — — — Diluted net income attributable to common unitholders $ 39,820 $ 71,286 $ 59,090 $ 115,830 Weighted average number of Common Units outstanding 372,167 362,826 371,790 362,517 Other potential dilutive units 406 100 407 98 Weighted average number of Common Units and potential dilutive securities 372,573 362,926 372,197 362,615 |
Computation of Anti-Dilutive Common Share | The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 General Partner and Partnership Other potential dilutive shares or units: Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans — — — — Anti-dilutive outstanding participating securities 1,660 1,960 1,660 1,960 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenues Rental Operations: Industrial $ 224,472 $ 211,004 $ 441,424 $ 419,407 Non-reportable Rental Operations 1,383 1,478 2,911 2,930 Service Operations 12,137 23,919 19,751 78,883 Total segment revenues 237,992 236,401 464,086 501,220 Other revenue 519 625 794 735 Consolidated revenue $ 238,511 $ 237,026 $ 464,880 $ 501,955 |
Summary of Net Operation Income | The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes (in thousands and excluding discontinued operations): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 PNOI Industrial $ 160,966 $ 149,369 $ 317,305 $ 292,251 Non-reportable Rental Operations 1,053 862 2,872 1,740 PNOI, excluding all sold properties 162,019 150,231 320,177 293,991 PNOI from sold properties included in continuing operations (3) 5,952 111 11,944 PNOI, continuing operations $ 162,016 $ 156,183 $ 320,288 $ 305,935 Earnings from Service Operations 1,731 730 2,777 3,108 Rental Operations revenues and expenses excluded from PNOI: Straight-line rental income and expense, net 6,774 4,762 8,476 10,466 Revenues related to lease buyouts 2,033 — 2,426 19 Amortization of lease concessions and above and below market rents 1,540 1,542 4,097 2,804 Intercompany rents and other adjusting items (703) 60 (375) 103 Non-Segment Items: Equity in earnings of unconsolidated joint ventures 2,396 4,143 4,935 8,858 Interest expense (22,841) (23,510) (46,335) (45,642) Depreciation and amortization expense (86,704) (83,004) (172,063) (158,996) Gain on sale of properties — 30,592 8,937 30,429 Impairment charges — — (5,626) — Interest and other income, net 216 2,534 1,611 5,292 General and administrative expenses (13,606) (13,420) (35,369) (35,403) Gain on land sales 6,070 1,950 6,205 2,700 Other operating expenses (1,546) (1,518) (2,658) (3,641) Loss on extinguishment of debt (14,972) — (32,778) (13) Gain on involuntary conversion 1,283 — 1,283 2,259 Non-incremental costs related to successful leases (4,034) (3,447) (6,559) (5,603) Other non-segment revenues and expenses, net 394 588 327 663 Income from continuing operations before income taxes $ 40,047 $ 78,185 $ 59,599 $ 123,338 |
Real Estate Assets, Discontin_2
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Real Estate Properties [Table Text Block] | Real estate assets, excluding assets held-for-sale, consisted of the following (in thousands): June 30, 2020 December 31, 2019 Buildings and tenant improvements $ 5,541,171 $ 5,295,336 Land and improvements 2,617,697 2,532,541 Other real estate investments (1) 135,039 165,500 Real estate assets $ 8,293,907 $ 7,993,377 |
Table Illustration of Number of Properties in Discontinued Operations | The following table illustrates the number of sold or held-for-sale properties in this report, all of which were excluded from discontinued operations: Held-for-Sale at June 30, 2020 Sold Year-to-Date in 2020 Sold in 2019 Total Properties sold or classified as held-for-sale — 1 28 29 |
Allocation of Common Shareholders' Income (Loss) Between Continuing and Discontinued Operations | The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to the noncontrolling interests (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Income from continuing operations attributable to common shareholders $ 39,797 $ 70,955 $ 59,206 $ 115,352 Income from discontinued operations attributable to common shareholders 23 98 70 252 Net income attributable to common shareholders $ 39,820 $ 71,053 $ 59,276 $ 115,604 |
Schedule of Discontinued Operations, Properties Held-for-Sale, Aggregate Balance Sheet Information [Table Text Block] | The following table illustrates aggregate balance sheet information for assets held-for-sale (in thousands): Held-for-Sale Properties Included in Continuing Operations June 30, 2020 December 31, 2019 Land and improvements $ — $ 4,561 Buildings and tenant improvements — 18,840 Undeveloped land — — Accumulated depreciation — (7,132) Deferred leasing and other costs, net — 2,100 Other assets — 94 Total assets held-for-sale $ — $ 18,463 Total liabilities related to assets held-for-sale $ — $ 887 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Schedule of Dividends Declared | The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on July 29, 2020: Class of stock/units Quarterly Amount per Share or Unit Record Date Payment Date Common - Quarterly $0.235 August 14, 2020 August 31, 2020 |
General Basis of Presentation (
General Basis of Presentation (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Duke Realty Corporation [Member] | |
Common partnership interests of DRLP Owned | 99.10% |
Non-Duke Unitholders [Member] | |
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 0.90% |
Lease Income (Details)
Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jul. 28, 2020 | |
Leases [Abstract] | |||||
Rental revenue - fixed payments | $ 169,617 | $ 161,483 | $ 331,224 | $ 318,157 | |
Rental revenue - variable payments (1) | 56,757 | 51,624 | 113,905 | 104,915 | |
Rental and related revenue | 226,374 | $ 213,107 | 445,129 | $ 423,072 | |
Operating Lease, Right-of-Use Asset | 40,800 | 40,800 | |||
Operating Lease, Liability | $ 43,800 | $ 43,800 | |||
Subsequent Event [Member] | |||||
Leases [Abstract] | |||||
Rent Deferrals Granted | $ 7,800 | ||||
Subsequent Event [Line Items] | |||||
Rent Deferrals Granted | $ 7,800 |
Restricted Cash (Details)
Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 29,870 | $ 110,891 | ||
Restricted cash held in escrow for like kind exchange | 0 | 1,673 | ||
Restricted cash included in other escrow deposits and other assets | 28,726 | 8,867 | ||
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows | $ 58,596 | $ 121,431 | $ 17,027 | $ 25,517 |
Variable Interest Entities (Bal
Variable Interest Entities (Balances Related to Joint Ventures) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | |
Maximum Guarantee Exposure for Joint Venture Loans | $ 59.9 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisitions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Payments to Acquire Commercial Real Estate | $ 0 | $ 108,201 |
Acquisitions and Dispositions D
Acquisitions and Dispositions Dispositions (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Dispositions Disclosures [Line Items] | ||
Proceeds from Sale of Real Estate Held-for-investment | $ 34,509 | $ 97,526 |
Proceeds from Collection of Notes Receivable | $ 110,000 |
Indebtedness (Summary of Book V
Indebtedness (Summary of Book Value and Changes in Fair Value of Debt) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Book value | $ 3,075,186 | $ 2,914,765 |
Fair value | 3,391,058 | 3,081,932 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 693,400 | |
Payments/Payoffs | (518,166) | |
Adjustments to fair value | 133,892 | |
Long-term Debt, Gross | 3,109,377 | 2,934,187 |
Debt Issuance Costs, Net | 34,191 | 19,422 |
Fixed Rate Secured Debt [Member] | ||
Book value | 48,737 | 32,287 |
Fair value | 41,591 | 34,547 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 18,400 | |
Payments/Payoffs | (1,906) | |
Adjustments to fair value | (9,450) | |
Variable Rate Secured Debt [Member] | ||
Book value | 1,900 | 1,900 |
Fair value | 1,900 | 1,900 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 0 | |
Payments/Payoffs | 0 | |
Adjustments to fair value | 0 | |
Unsecured Debt [Member] | ||
Book value | 3,058,740 | 2,900,000 |
Fair value | 3,347,567 | $ 3,045,485 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | 675,000 | |
Payments/Payoffs | (516,260) | |
Adjustments to fair value | $ 143,342 |
Indebtedness Secured Debt (Deta
Indebtedness Secured Debt (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Feb. 28, 2020 |
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.85% | 3.19% |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 18.4 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.41% | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 350 | $ 325 |
Minimum [Member] | Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.20% | |
Maximum [Member] | Fixed Rate Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Effective Percentage | 2.90% |
Indebtedness Unsecured Debt (De
Indebtedness Unsecured Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2020 | Feb. 29, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Feb. 28, 2020 | |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.75% | 1.75% | 1.75% | 3.05% | ||||
Issuance Price of Notes as a Percentage of Par Value | 99.07% | 99.07% | 99.07% | 97.35% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 1.85% | 1.85% | 1.85% | 3.19% | ||||
Loss on extinguishment of debt | $ (14,972) | $ 0 | $ (32,778) | $ (13) | ||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Estimated Trading Values, Percent of Face Value, Minimum | 99.00% | |||||||
Debt Instrument, Estimated Trading Values, Percent of Face Value, Maximum | 136.00% | |||||||
Debt Instrument, Covenant Compliance | We were in compliance with all such financial covenants at | |||||||
Unsecured Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 350,000 | $ 350,000 | $ 350,000 | $ 325,000 | ||||
Extinguishment of Debt, Amount | 216,300 | $ 300,000 | ||||||
Loss on extinguishment of debt | $ 15,000 | $ 17,800 | ||||||
Stated Interest Rate on Extinguished Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.88% | 3.88% | 3.88% | 4.38% |
Indebtedness (Unsecured Line of
Indebtedness (Unsecured Line of Credit) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument, Description of Variable Rate Basis | LIBOR |
Unsecured Line of Credit DRLP [Member] | |
Maximum Capacity | $ 1,200,000 |
Maturity date | Jan. 30, 2022 |
Line of credit balance | $ 0 |
Line of Credit Facility Option to Increase Borrowing Limit | 800,000 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,000,000 |
Line of Credit Facility, Covenant Compliance | we were in compliance with all financial covenants under this line of credit. |
Unsecured Line of Credit DRLP [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.875% |
Equity (Details)
Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
At the Market Equity Offering [Line Items] | |||
Common shares, par value | $ 0.01 | $ 0.01 | |
Common Stock Value Authorized Under Stock Offering Program | $ 400,000 | ||
Stock Issued During Period, Shares, New Issues | 2,000,000 | ||
Proceeds from Issuance of Common Stock | $ 76,678 | $ 42,128 | |
After Market Equity Issuance [Member] | |||
At the Market Equity Offering [Line Items] | |||
Proceeds from Issuance of Common Stock | 70,700 | ||
After Market Equity Issuance [Member] | Gross Proceeds [Member] | |||
At the Market Equity Offering [Line Items] | |||
Proceeds from Issuance of Common Stock | $ 71,600 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Fees Earned from Related Parties) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Management Fees [Member] | ||||
Revenue from related party transactions | $ 396 | $ 443 | $ 744 | $ 865 |
Leasing Fees [Member] | ||||
Revenue from related party transactions | 0 | 408 | 451 | 556 |
Construction and Development Fees [Member] | ||||
Revenue from related party transactions | $ 860 | $ 1,742 | $ 1,221 | $ 3,938 |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share Reconciling the Components of Basic and Diluted Net Income (Loss) per Common Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to common shareholders | $ 39,820 | $ 71,053 | $ 59,276 | $ 115,604 |
Less: dividends on participating securities | (356) | (388) | (712) | (777) |
Basic net income attributable to common shareholders | 39,464 | 70,665 | 58,564 | 114,827 |
Add back dividends on dilutive participating securities | 0 | 0 | 0 | 0 |
Noncontrolling interest in earnings of common unitholders | 356 | 621 | 526 | 1,003 |
Diluted net income attributable to common shareholders | $ 39,820 | $ 71,286 | $ 59,090 | $ 115,830 |
Weighted average number of common shares/units outstanding, Basic | 368,836 | 359,681 | 368,513 | 359,412 |
Weighted average Limited Partner Units outstanding | 3,331 | 3,145 | 3,277 | 3,105 |
Other potential dilutive shares/units | 406 | 100 | 407 | 98 |
Weighted average number of common shares/units and potential dilutive securities | 372,573 | 362,926 | 372,197 | 362,615 |
Duke Realty Limited Partnership [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Net income attributable to common shareholders | $ 40,176 | $ 71,674 | $ 59,802 | $ 116,607 |
Less: dividends on participating securities | (356) | (388) | (712) | (777) |
Basic net income attributable to common unitholders | 39,820 | 71,286 | 59,090 | 115,830 |
Add back dividends on dilutive participating securities | 0 | 0 | 0 | 0 |
Diluted net income attributable to common unitholders | $ 39,820 | $ 71,286 | $ 59,090 | $ 115,830 |
Weighted average number of common shares/units outstanding, Basic | 372,167 | 362,826 | 371,790 | 362,517 |
Other potential dilutive shares/units | 406 | 100 | 407 | 98 |
Weighted average number of common shares/units and potential dilutive securities | 372,573 | 362,926 | 372,197 | 362,615 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share (Computation of Anti-Dilutive Common Shares) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 0 | 0 | 0 | 0 |
Participating Securities [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities | 1,660 | 1,960 | 1,660 | 1,960 |
Segment Reporting Summary of Re
Segment Reporting Summary of Revenues (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Number of Reportable Segments | 2 | |||
Rental and related revenue | $ 226,374 | $ 213,107 | $ 445,129 | $ 423,072 |
General contractor and service fee revenue | 12,137 | 23,919 | 19,751 | 78,883 |
Revenues | 238,511 | 237,026 | 464,880 | 501,955 |
Operating Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenues | 237,992 | 236,401 | 464,086 | 501,220 |
Operating Segments [Member] | Industrial [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | 224,472 | 211,004 | 441,424 | 419,407 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | 1,383 | 1,478 | 2,911 | 2,930 |
Operating Segments [Member] | Service Operations [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
General contractor and service fee revenue | 12,137 | 23,919 | 19,751 | 78,883 |
Corporate, Non-Segment [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Rental and related revenue | $ 519 | $ 625 | $ 794 | $ 735 |
Segment Reporting (Summary of N
Segment Reporting (Summary of Net Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement [Line Items] | ||||
Straight-line rental income and expense, net | $ 8,476 | $ 10,466 | ||
Equity in earnings of unconsolidated joint ventures | $ 2,396 | $ 4,143 | 4,935 | 8,858 |
Interest expense | (22,841) | (23,510) | (46,335) | (45,642) |
Depreciation and amortization expense | (86,704) | (83,004) | (172,063) | (158,996) |
Gain on sale of properties | 0 | 30,592 | 8,937 | 30,429 |
Impairment charges | 0 | 0 | (5,626) | 0 |
Interest and other income, net | 216 | 2,534 | 1,611 | 5,292 |
General and administrative expenses | (13,606) | (13,420) | (35,369) | (35,403) |
Gain on land sales | 6,070 | 1,950 | 6,205 | 2,700 |
Other operating expenses | (1,546) | (1,518) | (2,658) | (3,641) |
Loss on extinguishment of debt | (14,972) | 0 | (32,778) | (13) |
Gain on involuntary conversion | 1,283 | 0 | 1,283 | 2,259 |
Non-incremental costs related to successful leases | 4,034 | 3,447 | 6,559 | 5,603 |
Income from continuing operations before income taxes | 40,047 | 78,185 | 59,599 | 123,338 |
Operating Segments [Member] | ||||
Statement [Line Items] | ||||
Property Level Net Operating Income – Cash Basis | 162,019 | 150,231 | 320,177 | 293,991 |
Property Level Net Income, Cash Basis, Continuing Operations | 162,016 | 156,183 | 320,288 | 305,935 |
Operating Segments [Member] | Industrial [Member] | ||||
Statement [Line Items] | ||||
Property Level Net Operating Income – Cash Basis | 160,966 | 149,369 | 317,305 | 292,251 |
Operating Segments [Member] | All Other Segments [Member] | ||||
Statement [Line Items] | ||||
Property Level Net Operating Income – Cash Basis | 1,053 | 862 | 2,872 | 1,740 |
Operating Segments [Member] | Service Operations [Member] | ||||
Statement [Line Items] | ||||
Earnings from Service Operations | 1,731 | 730 | 2,777 | 3,108 |
Segment Reconciling Items [Member] | ||||
Statement [Line Items] | ||||
PNOI from sold properties included in continuing operations | (3) | 5,952 | 111 | 11,944 |
Straight-line rental income and expense, net | 6,774 | 4,762 | 8,476 | 10,466 |
Revenues Related to Lease Buyouts | 2,033 | 0 | 2,426 | 19 |
Amortization of lease concessions and above and below market rents | 1,540 | 1,542 | 4,097 | 2,804 |
Intercompany rents and other adjusting items | (703) | 60 | (375) | 103 |
Corporate, Non-Segment [Member] | ||||
Statement [Line Items] | ||||
Equity in earnings of unconsolidated joint ventures | 2,396 | 4,143 | 4,935 | 8,858 |
Interest expense | (22,841) | (23,510) | (46,335) | (45,642) |
Depreciation and amortization expense | (86,704) | (83,004) | (172,063) | (158,996) |
Gain on sale of properties | 0 | 30,592 | 8,937 | 30,429 |
Interest and other income, net | 216 | 2,534 | 1,611 | 5,292 |
General and administrative expenses | (13,606) | (13,420) | (35,369) | (35,403) |
Gain on land sales | 6,070 | 1,950 | 6,205 | 2,700 |
Other operating expenses | (1,546) | (1,518) | (2,658) | (3,641) |
Loss on extinguishment of debt | (14,972) | 0 | (32,778) | (13) |
Gain on involuntary conversion | 1,283 | 0 | 1,283 | 2,259 |
Non-incremental costs related to successful leases | (4,034) | (3,447) | (6,559) | (5,603) |
Other non-segment revenues and expenses, net | $ 394 | $ 588 | $ 327 | $ 663 |
Real Estate Assets, Discontin_3
Real Estate Assets, Discontinued Operations and Assets Held for Sale Real Estate Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Real Estate Assets [Abstract] | ||
Investment Building and Building Improvements | $ 5,541,171 | $ 5,295,336 |
Land and Land Improvements | 2,617,697 | 2,532,541 |
Real Estate Investments, Other | 135,039 | 165,500 |
Real Estate Assets | $ 8,293,907 | $ 7,993,377 |
Real Estate Assets, Discontin_4
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Table Illustration of Number of Properties in Discontinued Operations) (Details) - buildings | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Continuing Operations, Number of In-service Properties Held for Sale | 0 | |
Continuing Operations, Number of Real Estate Properties Sold | 1 | 28 |
Total Properties Sold or Classified as Held for Sale | 29 |
Real Estate Assets, Discontin_5
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Allocation of Shareholders' Income (Loss) Between Continuing and Discontinued Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Discontinued Operations | ||||
Income from continuing operations attributable to common shareholders | $ 39,797 | $ 70,955 | $ 59,206 | $ 115,352 |
Income from discontinued operations attributable to common shareholders | 23 | 98 | 70 | 252 |
Net income attributable to common shareholders | $ 39,820 | $ 71,053 | $ 59,276 | $ 115,604 |
Real Estate Assets, Discontin_6
Real Estate Assets, Discontinued Operations and Assets Held for Sale (Aggregate Balance Sheet of Properties Held for Sale Included in Discontinued Operations) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)buildings | Dec. 31, 2019USD ($) | |
Held for Sale Assets in Continuing and Discontinued Operations | ||
Continuing Operations, Number of In-service Properties Held for Sale | buildings | 0 | |
Total assets held-for-sale | $ 0 | $ 18,463 |
Total liabilities held-for-sale | 0 | 887 |
Continuing Operations [Member] | ||
Held for Sale Assets in Continuing and Discontinued Operations | ||
Land and Land Improvements Held-for-Sale | 0 | 4,561 |
Buildings and Tenant Improvements Held-for-Sale | 0 | 18,840 |
Inventory, Land Held-for-sale | 0 | 0 |
Accumulated Depreciation of Assets Held-for-Sale | 0 | (7,132) |
Deferred leasing and other costs, net | 0 | 2,100 |
Other assets | 0 | 94 |
Total assets held-for-sale | 0 | 18,463 |
Total liabilities held-for-sale | $ 0 | $ 887 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - Common Stock [Member] | 3 Months Ended |
Sep. 30, 2020$ / shares | |
Subsequent Event [Line Items] | |
Common stock dividends declared per share | $ 0.235 |
Record date | Aug. 14, 2020 |
Dividends Payable, Date to be Paid | Aug. 31, 2020 |
Subsequent Events Rents (Detail
Subsequent Events Rents (Details) | 6 Months Ended | |
Jun. 30, 2020 | Jul. 28, 2020 | |
Subsequent Event [Line Items] | ||
Document Period End Date | Jun. 30, 2020 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Collection of July 2020 Rents | 97.00% | |
Deferral of July 2020 Rents | 2.60% |