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8-K - FORM 8-K - DCT Industrial Trust Inc.d8k.htm
EX-99.2 - SUPPLEMENTAL INFORMATION - DCT Industrial Trust Inc.dex992.htm

Exhibit 99.1

LOGO

DCT INDUSTRIAL TRUST® REPORTS 2009

THIRD QUARTER RESULTS

DENVER, Colo., October 29, 2009 — DCT Industrial Trust® (NYSE: DCT), a leading industrial real estate investment trust, today announced financial results for the three and nine months ended September 30, 2009.

Funds from operations (FFO) attributable to common stockholders and unitholders for the third quarter of 2009 totaled $23.3 million, or $0.10 per diluted share, compared with $30.8 million, or $0.15 per diluted share, reported for the third quarter of 2008. FFO for the nine months ended September 30, 2009 was $82.0 million, or $0.37 per diluted share, compared with $93.4 million, or $0.45 per diluted share, reported for the nine months ended September 30, 2008. Excluding $0.01 per share of severance charges and impairment losses, FFO was $0.11 per diluted share for the third quarter of 2009 and $0.39 per diluted share for the nine months ended September 30, 2009.

Net loss attributable to common stockholders for the third quarter of 2009 was $(0.07) per diluted share, compared with net income attributable to common stockholders of $0.04 per diluted share reported for the third quarter of 2008. Net loss attributable to common stockholders for the nine months ended September 30, 2009 was $(0.08) per diluted share, compared with net income attributable to common stockholders of $0.13 per diluted share for the nine months ended September 30, 2008. The net loss attributable to common stockholders for the third quarter of 2009 and for the nine months ended September 30, 2009 includes $0.04 per share of losses on business combinations.

“While the operating environment remains challenging, leasing activity increased significantly during the third quarter. We are hopeful that the early signs of stabilization will translate into a sustained recovery,” commented Phil Hawkins, Chief Executive Officer of DCT Industrial Trust. “We are also beginning to see a slight increase in acquisition activity, which is encouraging. We have pursued, and will continue to pursue, attractive investment opportunities that meet our return and quality criteria in select markets and capitalize on our strong financial position.”

518 17TH STREET, 8TH FLOOR ¿ DENVER, CO 80202

303.597.2400 ¿ DCTINDUSTRIAL.COM


Balance Sheet

DCT’s balance sheet remains strong, with consolidated net debt to book value of total assets (less cash and before depreciation and amortization) of 36.5% as of September 30, 2009, compared with 38.0% as of December 31, 2008. The Company’s fixed charge coverage for the third quarter of 2009 was 2.6 times. During the third quarter, DCT prepaid $52.1 million of January 2010 maturities and received commitments from certain lenders to extend $70.0 million of 2012 maturities until 2019.

Operating Portfolio

As of September 30, 2009, DCTTM owned 374 consolidated operating properties, comprising 52.8 million square feet. Net operating income was $42.1 million in the third quarter of 2009, compared with $44.9 million reported for the third quarter of 2008.

DCT’s consolidated operating portfolio occupancy was 88.3% as of September 30, 2009, compared with 87.3% as of June 30, 2009. Including an additional 14.6 million square feet of operating properties held in joint ventures, occupancy as of September 30, 2009 was 90.0%, compared with 89.0% as of June 30, 2009.

Third quarter 2009 same store net operating income declined 8.4% on a cash basis and 9.4% on a GAAP basis, excluding revenue from lease terminations, when compared to the same period last year. Occupancy of same store properties averaged 87.8% in the third quarter of 2009, compared with 91.6% in the third quarter of 2008.

Leasing activity increased during the third quarter of 2009 to 2.9 million square feet of leases signed. Tenant retention was strong at a rate of 88.2% for the third quarter of 2009, while rents on signed leases for which there was a prior tenant increased 5.7% on a GAAP basis and declined 5.9% on a cash basis.

 

2


Capital Deployment Activity

DCT completed its forward commitment program with Nexxus in Monterrey, Mexico in the third quarter of 2009. The Company took ownership of the final three bulk distribution buildings comprising 354,000 square feet and completed a 36,000 square foot expansion.

During the third quarter, DCT also acquired its partners’ interests in two bulk distribution properties in Southern California totaling 872,000 square feet, one 570,000 square foot industrial building in Nashville and 28 acres of land in Indianapolis as part of the dissolution of three development joint ventures.

Dividend

DCT Industrial Trust’s Board of Directors has declared a $0.07 per share quarterly cash dividend, payable on January 15, 2010, to stockholders of record as of December 30, 2009.

Guidance

DCT narrowed guidance, excluding severance charges and impairments, for 2009 FFO to $0.49 to $0.51 per diluted share and updated 2009 net loss guidance to $(0.08) to $(0.06) per diluted share. The Company’s initial guidance, excluding real estate gains, losses and impairments, for 2010 FFO is $0.36 to $0.44 per diluted share and net loss of $(0.15) to $(0.07) per diluted share. Among other things, 2010 guidance factors in higher interest costs from anticipated refinancing of debt prior to their scheduled maturities, as well as the continuing impact of the weakened economy on operating results.

Conference Call Information

DCTTM will host a conference call to discuss third quarter 2009 results and its recent business activities on Friday, October 30, 2009 at 11:00 a.m. Eastern time. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing (800) 860-2442 or (412) 858-4600. A telephone replay will be available for one week following the call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 434190. A live webcast and replay of the conference call will be available in the investor relations section of the DCTTM website at www.dctindustrial.com.

 

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Supplemental information will be available in the Investor Relations section of the Company’s website at www.dctindustrial.com or by e-mail request at investorrelations@dctindustrial.com. Interested parties may also obtain supplemental information from the SEC’s website at www.sec.gov.

About DCT Industrial Trust

DCT Industrial Trust is a leading industrial real estate company that owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico. As of September 30, 2009, the Company owned, managed or had under development 76.2 million square feet of assets leased to approximately 850 customers, including 14.6 million square feet managed on behalf of three institutional joint venture partners. Additional information is available at www.dctindustrial.com.

CONTACT: Sara Knapp, 303-597-1550 or investorrelations@dctindustrial.com

 

4


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(in thousands, except per share information)

 

     September 30,
2009
    December 31,
2008
 
     (unaudited)        

ASSETS

    

Land

   $ 516,810      $ 511,730   

Buildings and improvements

     2,197,205        2,107,756   

Intangible lease assets

     120,073        187,605   

Construction in progress

     66,843        90,770   
                

Total Investment in Properties

     2,900,931        2,897,861   

Less accumulated depreciation and amortization

     (426,437     (417,404
                

Net Investment in Properties

     2,474,494        2,480,457   

Investments in and advances to unconsolidated joint ventures

     109,494        125,452   
                

Net Investment in Real Estate

     2,583,988        2,605,909   

Cash and cash equivalents

     8,802        19,681   

Notes receivable

     18,050        30,387   

Deferred loan costs, net

     4,483        5,098   

Straight-line rent and other receivables, net of allowance for doubtful accounts of $2,285 and $843, respectively

     29,516        31,747   

Other assets, net

     13,292        11,021   

Assets held for sale

     24,157        —     
                

Total Assets

   $ 2,682,288      $ 2,703,843   
                

LIABILITIES AND EQUITY

    

Liabilities:

    

Accounts payable and accrued expenses

   $ 37,370      $ 35,193   

Distributions payable

     16,527        16,630   

Tenant prepaids and security deposits

     15,020        17,601   

Other liabilities

     10,323        26,472   

Intangible lease liability, net

     6,489        6,813   

Senior unsecured notes

     625,000        625,000   

Mortgage notes

     513,722        574,634   

Liabilities related to assets held for sale

     947        —     
                

Total Liabilities

     1,225,398        1,302,343   

Equity:

    

Preferred stock, $0.01 par value, 50,000,000 shares authorized, none outstanding

     —          —     

Shares-in-trust, $0.01 par value, 100,000,000 shares authorized, none outstanding

     —          —     

Common stock, $0.01 par value, 350,000,000 shares authorized, 205,942,157 and 175,141,387 shares issued and outstanding as of September 30, 2009 and December 31, 2008, respectively

     2,059        1,751   

Additional paid-in capital

     1,798,632        1,657,923   

Distributions in excess of earnings

     (572,678     (513,040

Accumulated other comprehensive loss

     (15,018     (22,463
                

Total Stockholders’ Equity

     1,212,995        1,124,171   

Noncontrolling interests

     243,895        277,329   
                

Total Equity

     1,456,890        1,401,500   
                

Total Liabilities and Equity

   $ 2,682,288      $ 2,703,843   
                

Total debt net of cash:

    

Senior unsecured notes and mortgage notes

   $ 1,138,722      $ 1,199,634   

Less cash and cash equivalents

     (8,802     (19,681
                

Net debt

   $ 1,129,920      $ 1,179,953   
                

Book value of total assets less cash and before depreciation:

    

Total assets

   $ 2,682,288      $ 2,703,843   

Less cash and cash equivalents

     (8,802     (19,681

Add back accumulated depreciation and amortization

     426,437        417,404   
                

Book value of total assets less cash and before depreciation and amortization

   $ 3,099,923      $ 3,101,566   
                

Percentage of debt to total assets

     42.5     44.4
                

Percentage of net debt to book value of total assets less cash and before depreciation and amortization

     36.5     38.0
                

 

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DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(in thousands, except per share information)

(unaudited)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2009     2008     2009     2008  

REVENUES:

        

Rental revenues

   $ 60,638      $ 60,674      $ 181,502      $ 182,887   

Institutional capital management and other fees

     701        763        2,048        2,237   
                                

Total Revenues

     61,339        61,437        183,550        185,124   
                                

OPERATING EXPENSES:

        

Rental expenses

     9,347        7,523        25,230        23,061   

Real estate taxes

     9,193        8,237        26,621        24,871   

Real estate related depreciation and amortization

     27,805        26,080        81,669        81,699   

General and administrative

     9,081        4,879        21,003        15,844   
                                

Total Operating Expenses

     55,426        46,719        154,523        145,475   
                                

Operating Income

     5,913        14,718        29,027        39,649   

OTHER INCOME AND (EXPENSE):

        

Equity in income (losses) of unconsolidated joint ventures, net

     (400     457        2,165        1,183   

Loss on business combinations

     (10,156     —          (10,156     —     

Interest expense

     (13,518     (12,966     (40,185     (38,471

Interest income and other

     353        259        1,254        1,260   

Income taxes

     (471     (2     (2,024     (891
                                

Income (Loss) From Continuing Operations

     (18,279     2,466        (19,919     2,730   

Income from discontinued operations

     1,199        4,894        2,534        23,372   
                                

Income (Loss) Before Gain On Dispositions Of Real Estate Interests

     (17,080     7,360        (17,385     26,102   

Gain on dispositions of real estate interests

     24        118        61        525   
                                

Consolidated Net Income (Loss)

     (17,056     7,478        (17,324     26,627   

Net (income) loss attributable to noncontrolling interests

     2,473        (1,238     2,574        (4,507
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (14,583   $ 6,240      $ (14,750   $ 22,120   
                                

EARNINGS PER COMMON SHARE – BASIC:

        

Income (Loss) From Continuing Operations

   $ (0.08   $ 0.01      $ (0.09   $ 0.01   

Income from discontinued operations

     0.01        0.03        0.01        0.12   

Gain on dispositions of real estate interests

     0.00        0.00        0.00        0.00   
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (0.07   $ 0.04      $ (0.08   $ 0.13   
                                

EARNINGS PER COMMON SHARE – DILUTED:

        

Income (Loss) From Continuing Operations

   $ (0.08   $ 0.01      $ (0.09   $ 0.01   

Income from discontinued operations

     0.01        0.03        0.01        0.12   

Gain on dispositions of real estate interests

     0.00        0.00        0.00        0.00   
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (0.07   $ 0.04      $ (0.08   $ 0.13   
                                

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

        

Basic

     204,433        172,685        188,051        170,840   
                                

Diluted

     204,433        172,696        188,051        170,840   
                                

AMOUNTS ATTRIBUTABLE TO DCT COMMON STOCKHOLDERS:

        

Income (Loss) From Continuing Operations

   $ (15,646   $ 2,070      $ (16,973   $ 2,382   

Income from discontinued operations

     1,042        4,072        2,171        19,310   

Gain on dispositions of real estate interests

     21        98        52        428   
                                

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (14,583   $ 6,240      $ (14,750   $ 22,120   
                                

Distributions declared per common share

   $ 0.07      $ 0.16      $ 0.23      $ 0.48   
                                

 

6


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Reconciliation of Net Income to Funds From Operations

(in thousands, except per share information)

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2009     2008     2009     2008  

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (14,583   $ 6,240      $ (14,750   $ 22,120   

Adjustments:

        

Real estate related depreciation and amortization

     28,035        26,665        82,478        85,074   

Equity in (income) losses of unconsolidated joint ventures, net

     400        (457     (2,165     (1,183

Equity in FFO of unconsolidated joint ventures

     1,730        1,549        9,459        4,533   

(Gain) on dispositions of real estate interests

     (734     (4,515     (1,502     (22,046

Loss on business combinations

     10,156        —          10,156        —     

Gain on dispositions of non-depreciated real estate

     713        63        826        271   

Noncontrolling interest in the operating partnership’s share of the above adjustments

     (5,384     (3,919     (14,283     (11,870

FFO attributable to unitholders

     2,933        5,179        11,756        16,484   
                                

Funds from operations attributable to common stockholders and unitholders – basic and diluted

   $ 23,266      $ 30,805      $ 81,975      $ 93,383   
                                

FFO per common share and unit, basic and diluted

   $ 0.10      $ 0.15      $ 0.37      $ 0.45   
                                

Adjustments for impairment and severance costs:

        

Impairment losses (recoveries) on real estate assets held for sale

   $ 630      $ (52   $ 630      $ 1,180   

Severance costs

     2,669        —          2,669        —     
                                

FFO, excluding impairment losses and severance costs, attributable to common stockholders and unitholders, basic and diluted

   $ 26,565      $ 30,753      $ 85,274      $ 94,563   
                                

FFO, as adjusted, per common share and unit, basic and diluted

   $ 0.11      $ 0.15      $ 0.39      $ 0.45   
                                

FFO weighted average common shares and units outstanding:

        

Common shares for earnings per share - basic:

     204,433        172,685        188,051        170,840   

Participating securities

     1,648        1,197        1,599        1,118   

Units

     30,880        34,930        31,484        36,670   
                                

FFO weighted average common shares, participating securities and units outstanding – basic:

     236,961        208,812        22,134        208,628   

Dilutive common stock equivalents

     356        11        127        —     
                                

FFO weighted average common shares, participating securities and units outstanding – diluted:

     237,317        208,823        221,261        208,628   
                                

 

7


Guidance:

 

     Full-Year Range for 2009  

Guidance (1):

   (low)     (high)  

Earnings per diluted share

   $ (0.09   $ (0.07

Severance costs

     0.01        0.01   
                

Earnings per diluted share, adjusted

   $ (0.08   $ (0.06

Real estate related depreciation and amortization (2)

     0.54        0.54   

Loss on business combinations

     0.05        0.05   

Non-controlling interest and other

     (0.02     (0.02
                

FFO attributable to common shares per diluted share

   $ 0.49      $ 0.51   
                
     Full-Year Range for 2010  

Guidance (1):

   (low)     (high)  

Earnings per diluted share

   $ (0.15   $ (0.07

Real estate related depreciation and amortization (2)

     0.51        0.51   
                

FFO attributable to common shares per diluted share

   $ 0.36      $ 0.44   
                

 

(1)

Guidance excludes future real estate gains, losses or impairments.

(2)

Includes pro rata share of real estate depreciation and amortization from unconsolidated joint ventures.

The following table shows the calculation of our Fixed Charge Coverage for the three and nine months ended September 30, 2009 and 2008 (in thousands):

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2009     2008     2009     2008  

Net Income (Loss) Attributable to DCT Common Stockholders

   $ (14,583   $ 6,240      $ (14,750   $ 22,120   

Interest expense (1)

     13,518        13,339        40,244        39,158   

Pro rata share of interest expense from unconsolidated JVs

     1,136        798        3,290        1,886   

Real estate related depreciation and amortization (1)

     28,035        26,665        82,478        85,074   

Pro rata share of real estate related depreciation and amortization from unconsolidated JVs

     1,907        809        6,877        3,187   

Income taxes (1)

     472        2        2,029        916   

Stock-based compensation amortization

     3,227        863        5,369        2,458   

Noncontrolling interests (1)

     (2,473     1,238        (2,574     4,507   

Loss on business combinations

     10,156        —          10,156        —     

Non-FFO (gains) losses on dispositions of real estate interests, net

     (21     (4,504     (676     (20,595
                                

Adjusted EBITDA (2)

   $ 41,374      $ 45,450      $ 132,443      $ 138,711   
                                

Calculation of Fixed Charges:

        

Interest expense excluding financing obligations (1)

   $ 13,518      $ 13,339      $ 40,244      $ 39,106   

Interest expense related to financing obligations

     —          —          —          52   

Capitalized interest

     1,430        1,991        4,603        5,910   

Amortization of loan costs and debt premium/discount

     (368     (87     (1,036     131   

Pro rata share of interest expense from unconsolidated JVs

     1,136        798        3,290        1,886   
                                

Total Fixed Charges

   $ 15,716      $ 16,041      $ 47,101      $ 47,085   
                                

Fixed Charge Coverage

     2.6        2.8        2.8        2.9   
                                

 

(1)

Includes amounts related to discontinued operations.

(2)

Adjusted EBITDA represents net income (loss) attributable to DCT common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, noncontrolling interest, impairment losses and excludes non-FFO gains on disposed assets. We use adjusted EBITDA to measure our operating performance and to provide investors relevant and useful information because it allows fixed income investors to view income from our operations on an unleveraged basis before the effects of irregular items and certain non-cash items, such as deprecation and amortization, non-FFO gains on dispositions of real estate interests and impairment losses.

 

8


The following table is a reconciliation of our property net operating income to our reported “Income (Loss) From Continuing Operations” for the three and nine months ended September 30, 2009 and 2008 (in thousands):

 

     Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
     2009     2008     2009     2008  

Income (Loss) From Continuing Operations

   $ (18,279   $ 2,466      $ (19,919   $ 2,730   

Income taxes

     471        2        2,024        891   

Interest income and other

     (353     (259     (1,254     (1,260

Interest expense

     13,518        12,966        40,185        38,471   

Equity in income (losses) of unconsolidated joint ventures, net

     400        (457     (2,165     (1,183

Loss on business combinations

     10,156        —          10,156        —     

General and administrative expense

     9,081        4,879        21,003        15,844   

Real estate related depreciation and amortization

     27,805        26,080        81,669        81,699   

Institutional capital management and other fees

     (701     (763     (2,048     (2,237
                                

Total net operating income

     42,098        44,914        129,651        134,955   

Less net operating income – non-same store properties

     (1,920     (740     (5,115     (2,361
                                

Same store net operating income

     40,178        44,174        124,536        132,594   

Less revenue from lease terminations

     (408     (282     (1,851     (597
                                

Same store net operating income, excluding revenue from lease terminations

     39,770        43,892        122,685        131,997   

Less straight-line rents

     (73     (456     (231     (2,387

Add back amortization of above/(below) market rents

     263        195        1,001        927   
                                

Same store cash net operating income, excluding revenue from lease terminations

   $ 39,960      $ 43,631      $ 123,445      $ 130,537   
                                

 

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Financial Measures

Net operating income (“NOI”) is defined as rental revenue, including reimbursements, less rental expenses and real estate taxes, and excludes depreciation, amortization, general and administrative expenses and interest expense. DCT Industrial considers NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, to be appropriate supplemental performance measures because they reflect the operating performance of DCT Industrial’s properties and exclude certain items that are not considered to be controllable in connection with the management of the property such as depreciation, interest expense, interest income, revenue from lease terminations and general and administrative expenses. However, these measures should not be viewed as alternative measures of DCT Industrial’s financial performance since they exclude expenses which could materially impact our results of operations. Further, DCT Industrial’s NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures. Additionally, lease termination revenue is excluded as it is not considered to be indicative of recurring operating expense. Therefore, DCT Industrial believes net income (loss) attributable to common stockholders, as defined by GAAP, to be the most appropriate measure to evaluate DCT Industrial’s overall financial performance.

DCT Industrial believes that net income (loss) attributable to common stockholders, as defined by GAAP, is the most appropriate earnings measure. However, DCT Industrial considers funds from operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts (“NAREIT”), to be a useful supplemental, non-GAAP measure of DCT Industrial’s operating performance. NAREIT developed FFO as a relative measure of performance of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is generally defined as net income (loss) attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains (or losses) from dispositions of operating real estate held for investment purposes and adjustments to derive DCT Industrial’s pro rata share of FFO of unconsolidated joint ventures. We exclude gains and losses on business combinations and include the gains or losses from dispositions of properties which were acquired or developed with the intention to sell or contribute to an investment fund in our definition of FFO. Although the NAREIT definition of FFO predates the guidance for accounting for gains and losses on business combinations, we believe that excluding such gains and losses is consistent with the key objective of FFO as a performance measure. We also present FFO excluding severance charges and impairment losses. We believe that excluding these non-routine items provides a more meaningful and consistent comparison of our operating performance. Readers should note that FFO captures neither the changes in the value of DCT Industrial’s properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of DCT Industrial’s properties, all of which have real economic effect and could materially impact DCT Industrial’s results from operations. NAREIT’s definition of FFO is subject to interpretation and modifications to the NAREIT definition of FFO is common. Accordingly, DCT Industrial’s FFO may not be comparable to such other REITs’ FFO and FFO should be considered only as a supplement to net income (loss) attributable to common stockholders as a measure of DCT Industrial’s performance.

DCT Industrial calculates our fixed charge coverage calculation based on adjusted EBITDA, which represents net income (loss) attributable to DCT common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, noncontrolling interest, impairment losses and excludes non-FFO gains on disposed assets. We use adjusted EBITDA to measure our operating performance and to provide investors relevant and useful information because it allows fixed income investors to view income from our operations on an unleveraged basis before the effects of non-cash items, such as depreciation and amortization and stock-based compensation expense, and irregular items, such as non-FFO gains from the dispositions of real estate and impairment losses.

 

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Forward-Looking Information

The Company makes statements in this document that are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and variations of such words or similar expressions. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect the Company’s current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond its control including, without limitation: the competitive environment in which the Company operates; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets, particularly in light of the current economic slow-down in the U.S. and internationally; decreased rental rates or increasing vacancy rates; defaults on or non-renewal of leases by tenants; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; the timing of acquisitions and dispositions; natural disasters such as hurricanes, fires and earthquakes; national, international, regional and local economic conditions, including, in particular the current economic slow-down in the U.S. and internationally; the general level of interest rates and the availability of debt financing, particularly in light of the recent disruption in the credit markets; energy costs; the terms of governmental regulations that affect the Company and interpretations of those regulations, including changes in real estate and zoning laws and increases in real property tax rates; financing risks, including the risk that the Company’s cash flows from operations may be insufficient to meet required payments of principal and interest; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; the consequences of future terrorist attacks; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Company; and other risks and uncertainties detailed from time to time in DCT Industrial Trust’s filings with the Securities and Exchange Commission. In addition, the Company’s current and continuing qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on its ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

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