Recurring funds from operations per diluted share which excludes certain non-recurring items (“Recurring FFO”) was $0.31 for the quarter and $1.45 for the year; in line with guidance. FFO including non-recurring items was $0.33 for the quarter and $0.06 for the year.

Liquidity position further enhanced during the quarter:

Unsecured revolving line of credit completed; $850 million facility renewed through February 2013 with $200 million accordion feature; no balance outstanding on the line at year end;

Properties and land sold; $150 million in proceeds generated in the fourth quarter;

Available cash at year end to pay all 2010 unsecured debt maturities;

Over $1.6 billion of capital raised during the year.

Positive momentum in operating performance:

Overall portfolio occupancy increased to 87.8 percent;

Tenant retention rate at nearly 80 percent;

Positive net absorption for the quarter and over 22 million square feet of leases completed during the year;

Total overhead expenses reduced over 10 percent year over year according to plan.

2010 Recurring FFO guidance issued: $0.95 - $1.15 per share.

The following table reconciles FFO, as defined by NAREIT, to Recurring FFO as measured by the company, for both the fourth quarter and years ended 2009 and 2008.

FFO

Adjustments

Impairment charges and loss on business combinations

Gains on debt transactions

Gains on preferred stock repurchases

Valuation adjustments on deferred tax assets

Recurring FFO

Recurring FFO for the fourth quarter was $0.31 compared with $0.67 for the fourth quarter of 2008. The variance is primarily attributable to an increase in our weighted average share count due to the common equity offering in April 2009, gains on the sale of land and build-for-sale properties in the fourth quarter of 2008 and gains on the repurchase of preferred stock and debt in the fourth quarter of 2008. Recurring FFO for the year was $1.45 compared with $2.48 for 2008, and this variance was also primarily attributable to the same items mentioned above causing the quarterly variance. Recurring FFO includes $2.9 million ($0.01 per share) and $9.6 million ($0.05 per share) of severance costs for the fourth quarter and year 2009, respectively.

Net income per diluted share (EPS) for fourth quarter 2009 was a loss of $0.02, as compared to earnings of $0.13 for the same quarter in 2008. The variance is primarily attributable to a gain on the repurchase of preferred stock and debt recognized in the fourth quarter of 2008. EPS for the year was a loss of $1.67 compared to earnings of $0.33 for 2008. The loss was primarily driven by $302.6 million of non-cash impairment charges recognized in 2009 and the dilution from the follow on equity offering as noted above.

The company successfully renewed its unsecured revolving credit facility in November 2009. Under terms of the renewal, the facility has a borrowing capacity of $850 million with an interest rate on borrowings of 275 basis points plus LIBOR, and matures in February 2013. The terms also include a $200 million accordion feature to increase the facility to $1.05 billion. There is currently no balance outstanding under the facility.

Total capital raised in 2009 exceeded $1.6 billion from equity and unsecured debt offerings, asset sales, and secured financing transactions. As of year-end 2009, the company had approximately $1 billion of liquidity available from its available unsecured line of credit and cash on hand.

Overall portfolio occupancy, including projects under development, was 87.8 percent as of December 31, 2009, compared to 87.0 percent at September 30, 2009.

Tenant retention for the fourth quarter and year were 79.6 percent and 79.4 percent, respectively.

The company executed major leases for properties during the fourth quarter, including filling speculative industrial buildings in Columbus, Chicago and Atlanta totaling 2 million square feet.

Same property net operating income decreased by 5.9 percent for the fourth quarter of 2009, compared with the three-month period ended December 31, 2008. Same property net operating income decreased by approximately 2.7 percent for the 12-month period ended December 31, 2009, compared with the same period ended December 31, 2008, and was within expectations given the economic environment.

The company’s wholly owned development pipeline at December 31, 2009 consists of four significantly pre-leased projects and reflects reduced development volume as well as the company’s focus on pre-leased projects. The total estimated costs of these projects upon stabilization are $122.2 million, with $30.4 million in costs remaining to be funded. The pipeline is 662,000 square feet and 97 percent pre-leased in the aggregate.

During the fourth quarter 2009, the company placed into service five buildings and completed one expansion on an existing industrial asset. In aggregate, these assets and expansion totaled 702,000 square feet and were 83.6% pre-leased. Included in these assets were four medical office properties totaling approximately 280,000 square feet, which were 58.9% pre-leased in the aggregate, a 306,977 square foot expansion to a 100% pre-leased industrial building, and an 116,000 square foot, 100% pre-leased suburban office building.

The company’s joint venture development pipeline at December 31, 2009, consists of two projects which total 497,000 square feet and are 13 percent pre-leased. The total estimated costs of these projects upon stabilization are $157.8 million, with $61.9 million in remaining costs to be funded. Each joint venture has obtained third-party debt to finance construction of these properties. (All joint venture costs and square footage are reported at 100 percent ownership.)

The company began construction of one medical office property (62,000 square feet) that is 100% pre-leased.

Class

NYSE Symbol

Quarterly
Amount/Share

Record Date

Payment Date

No gains from the sale of build-for-sale properties;

Relatively flat occupancy performance;

Slightly declining same property NOI growth;

Dilutive effect of non-strategic property dispositions;

Flat new development volume; and

No acquisitions

Duke Realty Corporation

Statement of Operations

December 31, 2009

(In thousands, except per share amounts)

Revenues:

Rental and related revenue

General contractor and service fee revenue

Expenses:

Rental expenses

Real estate taxes

General contractor and service operations expenses

Depreciation and amortization

Other Operating Activities

Equity in earnings of unconsolidated companies

Gain on sale of properties

Earnings from sales of land

Undeveloped land carrying costs

Impairment charges

Other operating expenses

General and administrative expense

Operating income (loss)

Other Income (Expense)

Interest and other income (expense), net

Interest expense

Gain (loss) on debt transactions

Loss on business combinations

Income (loss) from continuing operations before income taxes

Income tax benefit (expense)

Valuation allowance on deferred tax asset

Income (loss) from continuing operations

Discontinued Operations:

Income (loss) before impairment and gain on sales

Impairment charges

Gain on sale of depreciable properties

Income (loss) from discontinued operations

Net income (loss)

Dividends on preferred shares

Gain on repurchase of preferred shares, net

Net (income) loss attributable to noncontrolling interests

Net income (loss) attributable to common shareholders

Basic net income (loss) per Common Share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Diluted net income (loss) per Common Share:

Continuing operations attributable to common shareholders

Discontinued operations attributable to common shareholders

Total

Net Income (Loss) Attributable to Common Shares

Less: Dividends on share based awards expected to vest

Net Income (Loss) Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Potentially dilutive securities

Net Income (Loss) Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Income (Loss) Attributable to Common Shares

Adjustments:

Depreciation and amortization

Company share of joint venture depreciation and amortization

Earnings from depreciable property sales-wholly owned

Earnings from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in earnings (loss) of unitholders

Joint venture partner convertible ownership option

Noncontrolling interest share of adjustments

Potentially dilutive securities

Funds From Operations - Diluted

(Gains) losses on debt transactions

Gains on preferred stock repurchases

Impairment charges and loss on business combination

Change in valuation allowance on deferred tax assets

Recurring Funds From Operations - Diluted

Net Income (Loss) Attributable to Common Shares

Less income allocated to participating securities

Net Income (Loss) Per Common Share - Basic

Add back:

Noncontrolling interest in earnings of unitholders

Potentially dilutive securities

Net Income (Loss) Per Common Share - Diluted

Reconciliation to Funds From Operations (“FFO”)

Net Income (Loss) Attributable to Common Shares

Adjustments:

Depreciation and amortization

Company share of joint venture depreciation and amortization

Earnings (loss) from depreciable property sales-wholly owned

Earnings (loss) from depreciable property sales-JV

Noncontrolling interest share of adjustments

Funds From Operations - Basic

Noncontrolling interest in earnings (loss) of unitholders

Noncontrolling interest share of adjustments

Potentially dilutive securities

Funds From Operations - Diluted

(Gains) losses on debt transactions

Gains on preferred stock repurchases

Impairment charges and loss on business combination

Change in valuation allowance on deferred tax assets

Recurring Funds From Operations - Diluted

ASSETS:

Rental Property

Less: Accumulated Depreciation

Construction in Progress

Land Held for Development

Net Real Estate Investments

Cash

Accounts Receivable

Straight-line Rents Receivable

Receivables on Construction Contracts

Investments in and Advances to Unconsolidated Companies

Deferred Financing Costs, Net

Deferred Leasing and Other Costs, Net

Escrow Deposits and Other Assets

Total Assets

LIABILITIES AND SHAREHOLDERS’ EQUITY:

Secured Debt

Unsecured Notes

Unsecured Line of Credit

Construction Payables and Amounts due Subcontractors

Accrued Real Estate Taxes

Accrued Interest

Accrued Expenses

Other Liabilities

Tenant Security Deposits and Prepaid Rents

Total Liabilities

Preferred Stock

Common Stock and Additional Paid-in Capital

Accumulated Other Comprehensive Income

Distributions in Excess of Net Income

Total Shareholders’ Equity

Non-controlling Interest

Total Liabilities and Equity