DCT Industrial Trust Inc. - FORM 8-K - EX-99.2

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8-K - 8-K - DCT Industrial Trust Inc.	d671073d8k.htm
EX-99.1 - EX-99.1 - DCT Industrial Trust Inc.	d671073dex991.htm

EXHIBIT 99.2

LOGO

Table of Contents


Quarterly Highlights			2
Consolidated Statements of Operations			3
Consolidated Balance Sheets			4
Funds from Operations			5
Selected Financial Data			6
Property Overview			7-8
Consolidated Leasing Summary			9
Acquisition and Disposition Summary			10
Development Overview			11
Indebtedness			12
Capitalization and Fixed Charge Coverage			13
Investment in Unconsolidated Ventures Summary			14
Definitions			15-17

Forward Looking Statement

We make statements in this report 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 and includes statements regarding our anticipated yields. We intend 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 our current views about our plans, intentions, expectations, strategies and prospects, which are based on the information currently available to us and on assumptions we have made. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we 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 our control including, without limitation:

•

national, international, regional and local economic conditions, including, in particular, the strength of the United States economic recovery and global economic recovery;

•

the general level of interest rates and the availability of capital;

•

the competitive environment in which we operate;

•

real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets;

•

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, dispositions and development;

•

natural disasters such as fires, floods, tornadoes, hurricanes and earthquakes;

•

energy costs;

•

the terms of governmental regulations that affect us and interpretations of those regulations, including the cost of compliance with those regulations, changes in real estate and zoning laws and increases in real property tax rates;

•

financing risks, including the risk that our cash flows from operations may be insufficient to meet required payments of principal, interest and other commitments;

•

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 or civil unrest;

•

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 us; and

•

other risks and uncertainties detailed from time to time in our filings with the Securities and Exchange Commission.

In addition, our current and continuing qualification as a real estate investment trust, or REIT, involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on our ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership.


Fourth Quarter 2013				Page 1
Supplemental Reporting Package

Quarterly Highlights


Portfolio Repositioning⁽¹⁾		Portfolio Occupancy (%)⁽²⁾

Total Leasing Volume (square feet, in millions)		Acquisitions and Dispositions⁽³⁾ ($ in millions)

Top 10 Markets⁽⁴⁾

Consolidated Operating


	ABR		Occupancy			Occupancy⁽⁵⁾
Market	(thousands)		Q4 2013			Q4 2012			Change
Southern California	$	28,352		94.8	%		99.7	%		-4.9	%
Chicago		23,107		95.5	%		99.7	%		-4.2	%
Atlanta		19,496		92.0	%		89.1	%		2.9	%
Houston		18,969		99.1	%		100.0	%		-0.9	%
Dallas		16,670		97.9	%		91.8	%		6.1	%
Northern California		16,502		93.1	%		98.1	%		-5.0	%
Cincinnati		12,040		93.8	%		91.6	%		2.2	%
Baltimore/Washington		11,607		88.9	%		90.3	%		-1.4	%
New Jersey		9,718		94.4	%		92.3	%		2.1	%
Miami		9,393		99.0	%		97.6	%		1.4	%

Total/Weighted Average	$	165,854		94.8	%		94.7	%		0.1	%

⁽¹⁾	Percentages are based on annualized base rent as previously reported. Each period’s calculation excludes annualized base rent associated with assets held for sale at period end.

⁽²⁾	Prior period amounts are as previously reported.

⁽³⁾	Includes consolidated property acquisitions or dispositions.

⁽⁴⁾	Based on annualized base rent as of December 31, 2013. Occupancy is as of period end.

⁽⁵⁾	Prior period amounts are as previously reported.


Fourth Quarter 2013				Page 2
Supplemental Reporting Package

Consolidated Statements of Operations

(unaudited, amounts in thousands, except per share data)


	Three Months Ended						Year Ended
	December 31,						December 31,
	2013			2012			2013			2012
REVENUES:
Rental revenues	$	76,475		$	63,365		$	286,218		$	236,839
Institutional capital management and other fees		648			916			2,787			4,059

Total revenues		77,123			64,281			289,005			240,898

OPERATING EXPENSES:
Rental expenses		9,904			8,024			35,977			30,298
Real estate taxes		10,830			8,805			44,048			36,092
Real estate related depreciation and amortization		35,368			28,477			130,002			109,993
General and administrative		8,187			6,855			28,010			25,763
Casualty and involuntary conversion gain		—			(1,033	)		(296	)		(1,174	)

Total operating expenses		64,289			51,128			237,741			200,972

Operating income		12,834			13,153			51,264			39,926
OTHER INCOME AND EXPENSE:
Development profit		—			307			268			307
Equity in earnings of unconsolidated joint ventures, net		684			303			2,405			1,087
Interest expense		(16,066	)		(17,504	)		(63,394	)		(69,274	)
Interest and other income (expense)		(37	)		(142	)		274			85
Income tax benefit (expense) and other taxes		305			(94	)		(68	)		(671	)

Loss from continuing operations		(2,280	)		(3,977	)		(9,251	)		(28,540	)
Discontinued operations:
Operating income and other expenses		1,196			2,313			6,383			9,839
Gain on dispositions of real estate interests from discontinued operations		16,036			1,035			20,340			1,961

Income from discontinued operations		17,232			3,348			26,723			11,800

Consolidated net income (loss) of DCT Industrial Trust Inc.		14,952			(629	)		17,472			(16,740	)
Net (income) loss attributable to noncontrolling interests		(1,013	)		(216	)		(1,602	)		1,654

Net income (loss) attributable to common stockholders		13,939			(845	)		15,870			(15,086	)

Distributed and undistributed earnings allocated to participating securities		(167	)		(122	)		(692	)		(524	)

Adjusted net income (loss) attributable to common stockholders	$	13,772		$	(967	)	$	15,178		$	(15,610	)

EARNINGS PER COMMON SHARE – BASIC AND DILUTED
Loss from continuing operations	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.10	)
Income from discontinued operations		0.05			0.01			0.08			0.04

Net income (loss) attributable to common stockholders	$	0.04		$	0.00		$	0.05		$	(0.06	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic and Diluted		317,856			271,066			298,769			254,831


Fourth Quarter 2013				Page 3
Supplemental Reporting Package

Consolidated Balance Sheets

(amounts in thousands)


	December 31,			December 31,
	2013			2012
	(unaudited)
ASSETS:
Operating properties	$	3,442,442		$	3,209,024
Properties under development		142,903			80,008
Properties under redevelopment		12,194			14,699
Properties in pre-development including land held		73,512			81,796

Total investment in properties		3,671,051			3,385,527
Less accumulated depreciation and amortization		(654,097	)		(605,888	)

Net investment in properties		3,016,954			2,779,639
Investments in and advances to unconsolidated joint ventures		124,923			130,974

Net investment in real estate		3,141,877			2,910,613
Cash and cash equivalents		32,226			12,696
Restricted cash		12,621			10,076
Deferred loan costs, net		10,251			6,838
Straight-line rent and other receivables, net		46,247			51,179
Other assets, net		14,545			12,945
Assets held for sale		8,196			52,852

Total assets	$	3,265,963		$	3,057,199

LIABILITIES AND EQUITY:
Accounts payable and accrued expenses	$	63,281		$	57,501
Distributions payable		23,792			21,129
Tenant prepaids and security deposits		28,542			24,395
Other liabilities		10,122			7,213
Intangible lease liability, net		20,389			20,148
Line of credit		39,000			110,000
Senior unsecured notes		1,122,407			1,025,000
Mortgage notes		290,960			317,314
Liabilities related to assets held for sale		278			940

Total liabilities		1,598,771			1,583,640

Total stockholders’ equity		1,543,806			1,329,064
Noncontrolling interests		123,386			144,495

Total liabilities and equity	$	3,265,963		$	3,057,199


Fourth Quarter 2013				Page 4
Supplemental Reporting Package

Funds from Operations

(unaudited, amounts in thousands, except per share and unit data)


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Reconciliation of net income (loss) attributable to common stockholders to FFO:
Net income (loss) attributable to common stockholders	$	13,939		$	(845	)	$	15,870		$	(15,086	)
Adjustments:
Real estate related depreciation and amortization		35,527			32,011			137,120			126,687
Equity in earnings of unconsolidated joint ventures, net		(684	)		(303	)		(2,405	)		(1,087	)
Equity in FFO of unconsolidated joint ventures		2,622			2,429			10,152			10,312
Impairment losses on depreciable real estate		—			—			13,279			11,422
Gain on dispositions of real estate interests		(16,036	)		(1,035	)		(33,650	)		(13,383	)
Gain on dispositions of non-depreciable real estate		—			—			31			—
Noncontrolling interest in the above adjustments		(1,145	)		(2,601	)		(8,211	)		(12,522	)
FFO attributable to unitholders		1,835			2,365			8,437			9,743

FFO attributable to common stockholders and unitholders⁽¹⁾		36,058			32,021			140,623			116,086

Adjustments:
Acquisition costs		1,930			989			3,578			1,975

FFO, as adjusted, attributable to common stockholders and unitholders – basic and diluted	$	37,988		$	33,010		$	144,201		$	118,061

FFO per common share and unit — basic and diluted	$	0.11		$	0.11		$	0.44		$	0.41

FFO, as adjusted, per common share and unit — basic and diluted	$	0.11		$	0.11		$	0.45		$	0.42

FFO weighted average common shares and units outstanding:
Common shares for earnings per share—basic		317,856			271,066			298,769			254,831
Participating securities		2,513			1,995			2,462			1,896
Units		17,742			21,437			19,079			23,358

FFO weighted average common shares, participating securities and units outstanding – basic		338,111			294,498			320,310			280,085
Dilutive common stock equivalents		1,008			662			893			623

FFO weighted average common shares, participating securities and units outstanding – diluted		339,119			295,160			321,203			280,708

⁽¹⁾	Funds from operations, FFO, as defined by the National Association of Real Estate Investment Trusts (NAREIT).


Fourth Quarter 2013				Page 5
Supplemental Reporting Package

Selected Financial Data

(unaudited, amounts in thousands)


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
NET OPERATING INCOME:⁽¹⁾
Rental revenues	$	76,475		$	63,365		$	286,218		$	236,839
Rental expenses and real estate taxes		(20,734	)		(16,829	)		(80,025	)		(66,390	)

Net operating income⁽²⁾	$	55,741		$	46,536		$	206,193		$	170,449

TOTAL CONSOLIDATED PROPERTIES:⁽³⁾
Square feet as of period end		63,172			61,410			63,172			61,410
Average occupancy		91.2	%		91.0	%		90.9	%		90.5	%
Occupancy as of period end		91.8	%		90.4	%		91.8	%		90.4	%
CONSOLIDATED OPERATING PROPERTIES:⁽³⁾
Square feet as of period end		62,118			60,149			62,118			60,149
Average occupancy		92.8	%		92.3	%		92.4	%		91.0	%
Occupancy as of period end		93.3	%		92.3	%		93.3	%		92.3	%
SAME STORE PROPERTIES:⁽⁴⁾
Square feet as of period end		50,690			50,690			48,871			48,871
Average occupancy		91.9	%		91.8	%		91.5	%		90.5	%
Occupancy as of period end		92.6	%		92.2	%		92.3	%		91.9	%
Rental revenues	$	61,804		$	61,496		$	235,547		$	228,680
Rental expenses and real estate taxes		(17,134	)		(16,499	)		(67,290	)		(64,152	)

Same store net operating income		44,670			44,997			168,257			164,528
Less: revenue from lease terminations		(229	)		(154	)		(1,057	)		(491	)

Net operating income (excluding revenue from lease terminations)		44,441			44,843			167,200			164,037

Less: straight-line rents, net of related bad debt expense		(377	)		(1,529	)		(799	)		(5,752	)
Less: amortization of below market rents, net		(351	)		(307	)		(1,125	)		(688	)

Cash net operating income (excluding revenue from lease terminations)	$	43,713		$	43,007		$	165,276		$	157,597

Net operating income growth (excluding revenue from lease terminations)		-0.9	%					1.9	%
Cash net operating income growth (excluding revenue from lease terminations)		1.6	%					4.9	%
SUPPLEMENTAL CONSOLIDATED CASH FLOW AND OTHER INFORMATION:
Straight-line rents - increase to revenue, net of related bad debt expense⁽³⁾	$	1,890		$	1,649		$	5,642		$	6,044
Straight-line rent receivable (balance sheet)⁽³⁾	$	41,696		$	38,914		$	41,696		$	38,914
Net amortization of below market rents – increase to revenue⁽³⁾	$	379		$	360		$	1,580		$	932
Capitalized interest	$	2,241		$	1,684		$	8,298		$	4,267
Noncash interest expense⁽³⁾	$	1,403		$	1,292		$	4,557		$	3,127
Stock-based compensation	$	1,459		$	1,235		$	5,107		$	4,313
Revenue from lease terminations⁽³⁾	$	229		$	154		$	1,302		$	700
Bad debt expense, excluding bad debt expense related to straight-line rents⁽³⁾	$	376		$	86		$	1,252		$	607
CONSOLIDATED CAPITAL EXPENDITURES:⁽³⁾
Development, redevelopment, due diligence and other capital improvements	$	30,528		$	24,736		$	127,131		$	60,512
Routine capital improvements		3,438			4,435			12,394			12,619
Tenant improvements and leasing costs		6,958			10,194			26,219			31,388

Total capital expenditures	$	40,924		$	39,365		$	165,744		$	104,519

⁽¹⁾	Excludes discontinued operations.

⁽²⁾	See reconciliation of net operating income to loss from continuing operations in Definitions.

⁽³⁾	Includes discontinued operations.

⁽⁴⁾	See the Definitions for same store properties.


Fourth Quarter 2013				Page 6
Supplemental Reporting Package

Property Overview

As of December 31, 2013


Markets	Number of Buildings		Percent Owned⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage⁽⁵⁾			Annualized Base Rent^(2) (6)			Percent of Total Annualized Base Rent
						(in thousands)								(in thousands)
CONSOLIDATED OPERATING:
Atlanta		41		100.0	%		6,592		10.4	%		92.0	%	$	19,496			8.4	%
Baltimore/Washington D.C.		19		100.0	%		2,236		3.5	%		88.9	%		11,607			5.0	%
Charlotte		1		100.0	%		472		0.7	%		100.0	%		1,604			0.7	%
Chicago		35		100.0	%		6,964		11.0	%		95.5	%		23,107			10.0	%
Cincinnati		31		100.0	%		3,782		6.0	%		93.8	%		12,040			5.2	%
Columbus		12		100.0	%		3,480		5.5	%		87.0	%		7,590			3.3	%
Dallas		34		100.0	%		5,160		8.2	%		97.9	%		16,670			7.2	%
Denver		2		100.0	%		278		0.4	%		96.5	%		1,259			0.5	%
Houston		43		100.0	%		3,256		5.2	%		99.1	%		18,969			8.2	%
Indianapolis		7		100.0	%		2,299		3.6	%		96.4	%		7,499			3.2	%
Louisville		3		100.0	%		1,109		1.8	%		100.0	%		3,595			1.6	%
Memphis		8		100.0	%		3,712		5.9	%		83.4	%		8,006			3.5	%
Miami		10		100.0	%		1,362		2.2	%		99.0	%		9,393			4.1	%
Nashville		4		100.0	%		2,064		3.3	%		96.5	%		5,304			2.3	%
New Jersey		14		100.0	%		1,926		3.0	%		94.4	%		9,718			4.2	%
Northern California		27		100.0	%		3,171		5.0	%		93.1	%		16,502			7.1	%
Orlando		20		100.0	%		1,864		3.0	%		83.1	%		6,169			2.7	%
Pennsylvania		14		100.0	%		2,828		4.5	%		91.0	%		8,929			3.9	%
Phoenix		17		100.0	%		2,025		3.2	%		93.1	%		7,727			3.3	%
Seattle		12		100.0	%		1,599		2.5	%		94.4	%		7,827			3.4	%
Southern California		42		92.9	%		5,939		9.4	%		94.8	%		28,352			12.2	%

Total/weighted average – operating properties		396		99.3	%		62,118		98.3	%		93.3	%		231,363			100.0	%

REDEVELOPMENT PROPERTIES:
New Jersey		1		100.0	%		107		0.2	%		0.0	%		—			0.0	%
Phoenix		1		100.0	%		76		0.1	%		0.0	%		—			0.0	%

Total/weighted average – redevelopment properties		2		100.0	%		183		0.3	%		0.0	%		—			0.0	%

DEVELOPMENT PROPERTIES:
Chicago		1		100.0	%		604		1.0	%		0.0	%		—			0.0	%
Houston		1		100.0	%		267		0.4	%		0.0	%		—			0.0	%

Total/weighted average – development properties		2		100.0	%		871		1.4	%		0.0	%		—			0.0	%

Total/weighted average – consolidated properties		400		99.3	%		63,172		100.0	%		91.8	%	$	231,363	⁽³⁾		100.0	%

See footnotes on next page.


Fourth Quarter 2013				Page 7
Supplemental Reporting Package

Property Overview

(continued)

As of December 31, 2013


Markets	Number of Buildings		Percent Owned⁽¹⁾			Square Feet		Percentage of Total Square Feet			Occupancy Percentage⁽⁵⁾			Annualized Base Rent⁽²⁾		Percent of Total Annualized Base Rent
						(in thousands)								(in thousands)
UNCONSOLIDATED OPERATING PROPERTIES:
IDI (Chicago, Nashville, Savannah)		3		50.0	%		1,423		11.6	%		53.0	%	$	1,631		4.1	%
Southern California Logistics Airport⁽⁴⁾		6		50.0	%		2,160		17.5	%		99.6	%		7,871		20.0	%

Total/weighted average – unconsolidated operating properties		9		50.0	%		3,583		29.1	%		81.1	%		9,502		24.1	%

OPERATING PROPERTIES IN CO-INVESTMENT VENTURES:
Atlanta		1		3.6	%		491		4.0	%		100.0	%		1,753		4.4	%
Chicago		2		20.0	%		1,033		8.4	%		100.0	%		3,238		8.2	%
Cincinnati		3		13.6	%		892		7.2	%		100.0	%		2,977		7.5	%
Columbus		2		5.7	%		451		3.7	%		100.0	%		1,356		3.4	%
Dallas		3		15.3	%		1,186		9.6	%		100.0	%		3,622		9.1	%
Denver		5		20.0	%		772		6.3	%		95.9	%		3,654		9.2	%
Indianapolis		1		11.4	%		475		3.9	%		96.2	%		1,915		4.8	%
Louisville		4		10.0	%		736		6.0	%		100.0	%		1,411		3.6	%
Minneapolis		3		3.6	%		472		3.8	%		100.0	%		2,187		5.5	%
Nashville		2		20.0	%		1,020		8.3	%		100.0	%		2,750		7.0	%
Orlando		2		20.0	%		696		5.6	%		100.0	%		3,265		8.2	%
Pennsylvania		1		11.4	%		502		4.1	%		100.0	%		1,990		5.0	%

Total/weighted average - co-investment operating properties		29		14.3	%		8,726		70.9	%		99.4	%		30,118		75.9	%

Total/weighted average – unconsolidated properties		38		24.7	%		12,309		100.0	%		94.1	%	$	39,620		100.0	%

SUMMARY:
Total/weighted average - operating properties		434		87.0	%		74,427		98.6	%		93.5	%	$	270,983		100.0	%
Total/weighted average – redevelopment properties		2		100.0	%		183		0.2	%		0.0	%		—		0.0	%
Total/weighted average – development properties		2		100.0	%		871		1.2	%		0.0	%		—		0.0	%

Total/weighted average - all properties		438		87.2	%		75,481		100.0	%		92.2	%	$	270,983		100.0	%

⁽¹⁾	Percent owned is based on equity ownership weighted by square feet.

⁽²⁾	Annualized base rent is calculated as monthly contractual base rent (cash basis) per the terms of the lease, as of December 31, 2013, multiplied by 12.

⁽³⁾	Excludes total annualized base rent associated with tenants currently in free rent periods of $9.2 million based on the first month’s cash base rent.

⁽⁴⁾	Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50.

⁽⁵⁾	Based on leases commenced as of December 31, 2013.

⁽⁶⁾	Excludes total annualized base rent of $1.7 million from one non-industrial property acquired for future development.


Fourth Quarter 2013				Page 8
Supplemental Reporting Package

Consolidated Leasing Summary

Leasing Statistics⁽¹⁾


	Number of Leases Signed			Square Feet Signed		Cash Basis Rent Growth			GAAP Basis Rent Growth			Weighted Average Lease Term⁽²⁾		Turnover Costs		Turnover Costs Per Square Foot
				(in thousands)								(in months)		(in thousands)
FOURTH QUARTER 2013
New		29			1,023		11.8	%		32.6	%		54	$	2,803	$	2.74
Renewal		38			2,296		3.9	%		12.3	%		48		1,607		0.70
Development and redevelopment		2			267		N/A			N/A			75		N/A		N/A

Total/Weighted Average		69			3,586		5.1	%		15.5	%		52	$	4,410	$	1.33

Weighted Average Retention		83.4	%

YEAR TO DATE 2013
New		122			4,073		0.3	%		11.3	%		54	$	13,197	$	3.24
Renewal		169			8,273		-2.1	%		5.5	%		48		8,604		1.04
Development and redevelopment		8			1,490		N/A			N/A			79		N/A		N/A

Total/Weighted Average		299			13,836		-1.6	%		6.6	%		53	$	21,801	$	1.77

Weighted Average Retention		72.0	%

Lease Expirations for Consolidated Properties as of December 31, 2013⁽²⁾


Year	Square Feet Related to Expiring Leases		Annualized Base Rent of Expiring Leases⁽³⁾		Percentage of Total Annualized Base Rent
	(in thousands)		(in thousands)
2014⁽⁴⁾		8,440	$	35,217		13.4	%
2015		10,199		42,062		16.0	%
2016		10,110		44,166		16.9	%
2017		8,223		34,223		13.1	%
2018		6,621		30,394		11.6	%
Thereafter		14,392		75,932		29.0	%

Total occupied		57,985	$	261,994		100.0	%

Available or leased but not occupied		5,187

Total consolidated properties		63,172

(1)	Excludes month-to-month leases.

(2)	Assumes no exercise of lease renewal options.

(3)	Includes contractual rent changes.

(4)	Includes month-to-month leases.


Fourth Quarter 2013				Page 9
Supplemental Reporting Package

Acquisition and Disposition Summary

For the Twelve Months Ended December 31, 2013


	Property Name	Market	Size		Occupancy at Acquisition/ Disposition			Occupancy at December 31, 2013
			(building in sq. ft.)
BUILDING ACQUISITIONS:
March	Painter Avenue (2 buildings)	S. California		221,000		100.0	%		100.0	%
March	1375 Sampson Ave	S. California		125,000		100.0	%		100.0	%
March	Johnson Road (2 buildings)	Atlanta		154,000		81.3	%		100.0	%
April	3801 La Reunion	Dallas		271,000		100.0	%		96.4	%
May	TRT-DCT JV I Assets (7 buildings)⁽¹⁾	New Jersey, Pennsylvania, Atlanta, Chicago, Charlotte, N. California		1,918,000		71.7	%		99.5	%
May	4800 Central Avenue	Chicago		850,000		100.0	%		100.0	%
June	1950 Alpine Way	N. California		43,000		100.0	%		99.7	%
June	Bethlehem Crossing (3 buildings)	Pennsylvania		668,000		74.7	%		95.5	%
August	East Park 5	Seattle		39,000		100.0	%		100.0	%
August	5021 Statesman	Dallas		42,000		100.0	%		100.0	%
August	Broadway Industrial Park (3 buildings)	Phoenix		308,000		100.0	%		100.0	%
October	1400 NW 159th Street	Miami		211,000		100.0	%		100.0	%
October	Fox River Business Center (6 buildings)	Chicago		1,060,000		59.1	%		70.9	%
October	7060 Battle Drive	Atlanta		405,000		100.0	%		100.0	%
October	12250 4th Street	S. California		153,000		100.0	%		100.0	%
October	1530 Morse Avenue	Chicago		110,000		100.0	%		100.0	%
November	16218 Arthur Street	S. California		84,000		100.0	%		100.0	%
December	5203 Aeropark	Houston		88,000		100.0	%		100.0	%
December	40 Seaview Drive	New Jersey		179,000		100.0	%		100.0	%
December	2933 Eisenhower Street	Dallas		93,000		83.5	%		83.5	%
December	4200 Diplomacy Road	Dallas		100,000		100.0	%		100.0	%

Total YTD Purchase Price - $359.5 million				7,122,000		83.3	%		94.5	%

LAND ACQUISITIONS:
May	Airtex II	Houston		6.6 acres		N/A			N/A
June/July	Northwest Crossroads	Houston		38.5 acres		N/A			N/A
August	DCT Jurupa Ranch⁽²⁾	S. California		45.4 acres		N/A			N/A
August	DCT Auburn 44	Seattle		2.5 acres		N/A			N/A
December	Seneca Commerce Center⁽³⁾	Miami		35.6 acres		N/A			N/A

Total YTD Land Purchase Price - $40.5 million⁽⁴⁾				128.6 acres

DISPOSITIONS:
January	Memphis Trade Center	Memphis		1,039,000		74.1	%		N/A
January	100 Interstate South	Atlanta		578,000		76.2	%		N/A
March	Trade Point III	Louisville		221,000		100.0	%		N/A
May	Shelby 18	Memphis		400,000		100.0	%		N/A
June	San Antonio Portfolio (13 buildings)	San Antonio		1,177,000		99.2	%		N/A
July	Dallas Portfolio (2 buildings)	Dallas		81,000		62.2	%		N/A
October	Dallas Portfolio (15 buildings)	Dallas		559,000		72.2	%		N/A
October	Mexico Portfolio (15 buildings)	Mexico		1,653,000		100.0	%		N/A
November	TRT Hanson Way	N. California		396,000		100.0	%		N/A
December	Park West G	Cincinnati		710,000		100.0	%		N/A

Total YTD Sales Price - $265.8 million				6,814,000		91.2	%

(1)	During May 2013, we purchased the remaining 96.4% interest in seven properties from TRT-DCT JV I.

(2)	During August 2013, we purchased 45.4 acres that is leased as a non-industrial property and held for future development.

(3)	DCT purchased a 90% interest in the property and consolidated the land as of December 31, 2013.

(4)	Amounts are based on gross purchase price and include $0.4 million of noncontrolling interest.


Fourth Quarter 2013				Page 10
Supplemental Reporting Package

Development Overview


												Costs Incurred
Project	Market	Acres			Number of Buildings		Square Feet		Percent Owned			Q4-2013		Cumulative Costs at 12/31/2013		Projected Investment		Completion Date⁽³⁾		Percent Leased
							(in thousands)					(in thousands)		(in thousands)		(in thousands)
Consolidated Development Activities:
Stabilized in Q4 2013
Slover Logistics Center I	So. California		28			1		652		100	%	$	2,125	$	36,804	$	36,876		Q4-2013		100	%

			28			1		652		100	%	$	2,125	$	36,804	$	36,876				100	%

Projected Stabilized Yield⁽¹⁾			7.1	%

Projects Under Development
Development Projects in Lease Up
DCT Airtex Industrial Center	Houston		13			1		267		100	%	$	720	$	12,161	$	14,983		Q4-2013		100	%
DCT 55	Chicago		33			1		604		100	%		2,017		26,218		28,318		Q4-2012		66	%

	Total		46			2		871		100	%	$	2,737	$	38,379	$	43,301				77	%

Under Construction
DCT Beltway Tanner Business Park	Houston		11			1		133		100	%	$	650	$	10,201	$	15,153		Q1-2014		0	%
8th & Vineyard B	So. California		4			1		99		91	%		2,635		5,243		6,197		Q1-2014		0	%
DCT Summer South Distribution Center	Seattle		9			1		188		100	%		2,624		9,194		13,060		Q1-2014		0	%
DCT White River Corporate Center Phase I	Seattle		30			1		649		100	%		2,432		23,051		42,433		Q2-2014		0	%
Slover Logistics Center II	So. California		28			1		610		100	%		5,110		24,241		37,496		Q1-2014		100	%
DCT Auburn 44	Seattle		3			1		49		100	%		1,118		3,341		4,547		Q1-2014		100	%
DCT Rialto Logistics Center	So. California		42			1		928		100	%		775		21,480		59,523		Q3-2014		0	%

	Total		127			7		2,656		100	%	$	15,344	$	96,751	$	178,409				25	%

Projects Under Development			173			9		3,527		100	%	$	18,081	$	135,130	$	221,710				38	%

Projected Stabilized Yield - Projects Under Development⁽¹⁾			7.3	%

Build-to-Suit for Sale
8th & Vineyard A	So. California		6			1		130		91	%	$	2,164	$	7,773	$	8,703		Q1-2014		N/A

	Total		6			1		130		91	%	$	2,164	$	7,773	$	8,703

Pre-Development⁽²⁾
DCT River West	Atlanta		47							100	%	$	648	$	6,627
DCT Airtex Industrial Center II	Houston		7							100	%		72		1,455
DCT Northwest Crossroads Phase I	Houston		21							100	%		131		3,398
DCT Northwest Crossroads Phase II	Houston		18							100	%		47		3,048
DCT White River Corporate Center Phase II	Seattle		17							100	%		114		7,102
8th & Vineyard C	So. California		3							91	%		229		1,131
8^th & Vineyard D	So. California		4							91	%		245		1,449
8th & Vineyard E	So. California		2							91	%		141		830
DCT Jurupa Ranch⁽⁴⁾	So. California		39							100	%		51		26,369
ADC North Phase II Building C	Orlando		8							100	%		59		1,355
Seneca Commerce Center Phase I	Miami		12							90	%		1,270		1,270
Seneca Commerce Center Phase II	Miami		12							90	%		1,275		1,275
Seneca Commerce Center Phase III	Miami		12							90	%		1,275		1,275

	Total		202									$	5,557	$	56,584

⁽¹⁾	Yield computed on a GAAP basis including rents on a straight-line basis.

⁽²⁾	Excludes land held totaling 131 acres with cumulative costs of approximately $16.9 million at December 31, 2013.

⁽³⁾	The completion date represents the date of building shell completion or estimated date of shell completion.

⁽⁴⁾	The property is currently leased through December 2014.


Fourth Quarter 2013				Page 11
Supplemental Reporting Package

Indebtedness

(dollar amounts in thousands)

As of December 31, 2013


Description	Stated Interest Rate			Effective Interest Rate			Maturity Date	Balance as of December 31, 2013
SENIOR UNSECURED NOTES:
2015 Notes, fixed rate		5.63	%		5.63	%	June 2015	$	40,000
2016 Notes, fixed rate		4.90	%		4.89	%	April & August 2016		99,000
2017 Notes, fixed rate		6.31	%		6.31	%	June 2017		51,000
2018 Notes, fixed rate		5.62	%		5.62	%	June & August 2018		81,500
2018 Notes, variable rate⁽²⁾		1.82	%		1.82	%	February 2018		225,000
2019 Notes, fixed rate		4.97	%		4.97	%	August 2019		46,000
2020 Notes, fixed rate		5.43	%		5.43	%	April 2020		50,000
2021 Notes, fixed rate		6.70	%		6.70	%	June & August 2021		92,500
2022 Notes, fixed rate		4.61	%		7.13	%	August & September 2022		130,000
2023 Notes, fixed rate⁽¹⁾		4.62	%		4.73	%	August & October 2023		310,000
Premiums (discounts), net of amortization									(2,593	)

								$	1,122,407

MORTGAGE NOTES:
Fixed rate secured debt		5.82	%		5.18	%	April 2014–Aug. 2025		285,721
Premiums (discounts), net of amortization									5,239

								$	290,960

UNSECURED CREDIT FACILITY:
Senior unsecured revolving credit facility⁽³⁾		1.57	%		1.57	%	February 2017		39,000

Total carrying value of consolidated debt								$	1,452,367

Fixed rate debt		5.32	%		5.47	%			82	%
Variable rate debt		1.78	%		1.78	%			18	%

Weighted average interest rate		4.67	%		4.80	%			100	%

DCT PROPORTIONATE SHARE OF UNCONSOLIDATED JOINT VENTURE DEBT⁽⁴⁾
Institutional joint ventures								$	7,566
Stirling Capital Investments (SCLA)									36,805

								$	44,371

Scheduled Principal Payments of Debt as of December 31, 2013 (excluding premiums and discounts)


Year	Senior Unsecured Notes		Mortgage Notes		Unsecured Credit Facility		Total
2014	$	—	$	10,927	$	—	$	10,927
2015		40,000		49,982		—		89,982
2016		99,000		61,184		—		160,184
2017		51,000		11,768		39,000		101,768
2018		306,500		6,412		—		312,912
2019		46,000		51,019		—		97,019
2020		50,000		65,056		—		115,056
2021		92,500		18,476		—		110,976
2022		130,000		3,304		—		133,304
2023		310,000		6,344		—		316,344
Thereafter		—		1,249		—		1,249

Total	$	1,125,000	$	285,721	$	39,000	$	1,449,721

⁽¹⁾	In October 2013, in connection with the issuance of $275.0 million in aggregate principal amount of 10-year senior unsecured notes at 99.038% of face value, we used the net proceeds to repay the $50.0 million 2014 Notes and the $175.0 million 2015 Notes, which were pre-payable at par.

⁽²⁾	The $225.0 million term loan facility bears interest at a variable rate equal to LIBOR, plus a margin of between 1.55% to 2.10% per annum, or, at our election, an alternate base rate plus a margin of between 0.55% to 1.10% per annum, depending on our consolidated leverage.

⁽³⁾

The $300.0 million senior unsecured revolving credit facility matures in February 2017 and bears interest at a variable rate equal to LIBOR, plus a margin of between 1.35% to 1.80% per annum or, at our election, an alternate base rate plus a margin of between 0.35% to 0.80% per annum, depending on our consolidated leverage. There was $261.0 million available under the unsecured revolving credit facility as December 31, 2013.

⁽⁴⁾	Based on our ownership share as of December 31, 2013.


Fourth Quarter 2013				Page 12
Supplemental Reporting Package

Capitalization and Fixed Charge Coverage

(unaudited, dollar amounts in thousands, except share price)

Capitalization at December 31, 2013


Description	Shares or Units ⁽¹⁾		Share Price		Market Value
	(in thousands)
Common shares outstanding		320,266	$	7.13	$	2,283,497
Operating partnership units outstanding		17,819	$	7.13		127,049

Total equity market capitalization						2,410,546

Consolidated debt						1,452,367
Less: Noncontrolling interests’ share of consolidated debt⁽²⁾						(9,106	)
Proportionate share of debt related to unconsolidated joint ventures						44,371

DCT share of total debt						1,487,632

Total market capitalization					$	3,898,178

DCT share of total debt to total market capitalization						38.2	%

Fixed Charge Coverage


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Net income (loss) attributable to common stockholders⁽³⁾	$	13,939		$	(845	)	$	15,870		$	(15,086	)
Interest expense		16,066			17,504			63,394			69,403
Proportionate share of interest expense from unconsolidated joint ventures		400			734			1,657			3,100
Real estate related depreciation and amortization		35,527			32,011			137,120			126,687
Proportionate share of real estate related depreciation and amortization from unconsolidated joint ventures		1,484			1,689			5,924			7,462
Income tax (benefit) expense and other taxes		(333	)		95			57			716
Stock-based compensation		1,459			1,235			5,107			4,313
Noncontrolling interests		1,013			216			1,602			(1,654	)
Non-FFO gains on dispositions of real estate interests		(16,036	)		(1,035	)		(33,619	)		(13,383	)
Impairment losses		—			—			13,279			11,422

Adjusted EBITDA	$	53,519		$	51,604		$	210,391		$	192,980

CALCULATION OF FIXED CHARGES
Interest expense	$	16,066		$	17,504		$	63,394		$	69,403
Capitalized interest		2,241			1,684			8,298			4,267
Amortization of loan costs and debt premium/discount		(403	)		(284	)		(558	)		(1,093	)
Other noncash interest expense		(1,000	)		(1,008	)		(3,999	)		(2,034	)
Proportionate share of interest expense from unconsolidated joint ventures		400			734			1,657			3,100

Total fixed charges	$	17,304		$	18,630		$	68,792		$	73,643

Fixed charge coverage		3.1			2.8			3.1			2.6

⁽¹⁾	Excludes 1.8 million unvested Long-Term Incentive Plan Units, 0.6 million shares of unvested Restricted Stock and 0.1 million unvested Phantom Shares outstanding as of December 31, 2013.

⁽²⁾	Amount includes the portion of consolidated debt related to properties in which there are noncontrolling ownership interests.

⁽³⁾	Includes amounts related to discontinued operations, where applicable.


Fourth Quarter 2013				Page 13
Supplemental Reporting Package

Investment in Unconsolidated Ventures Summary

(unaudited, dollar amounts in thousands)

Statements of Operations & Other Data


	For the Year Ended December 31, 2013
	TRT- DCT JV I⁽⁷⁾			TRT- DCT JV II⁽⁷⁾			TRT- DCT JV III			JP Morgan			IDI/DCT			IDI/DCT Buford			Stirling Capital Investments
Total rental revenues	$	10,103		$	7,694		$	2,609		$	19,937		$	2,136		$	—		$	11,884
Rental expenses and real estate taxes		3,117			1,940			570			5,286			881			38			1,845

Net operating income (loss)		6,986			5,754			2,039			14,651			1,255			(38	)		10,039
Depreciation and amortization		4,617			3,204			926			9,919			1,710			—			4,924
General and administrative		29			16			53			757			7			6			875

Total expenses		7,763			5,160			1,549			15,962			2,598			44			7,644
Interest expense		(3,711	)		(3,229	)		(645	)		—			(645	)		—			(3,456	)
Interest and other income (expense)		(2,913	)		(14	)		4			26			(125	)		—			(25	)

Net income (loss)	$	(4,284	)	$	(709	)	$	419		$	4,001		$	(1,232	)	$	(44	)	$	759

Other Data:
Number of buildings		7			5			4			13			3			—			6
Square feet (in thousands)		1,642			1,744			735			4,605			1,423			—			2,160
Occupancy		100.0	%		99.0	%		100.0	%		99.3	%		53.0	%		0.0	%		99.6	%
DCT ownership		3.6	%		11.4	%		10.0	%		20.0	%		50.0	%		75.0	%		50.0	%⁽¹⁾

Balance Sheets


	As of December 31, 2013
	TRT- DCT JV I⁽⁷⁾			TRT- DCT JV II⁽⁷⁾			TRT- DCT JV III			JP Morgan			IDI/DCT			IDI/DCT Buford		Stirling Capital Investments
Total investment in properties	$	95,087		$	92,782		$	25,896		$	279,425		$	57,382		$	7,626	$	111,342
Accumulated depreciation and amortization		(26,884	)		(23,071	)		(5,990	)		(62,343	)		(6,109	)		—		(17,013	)

Net investment in properties		68,203			69,711			19,906			217,082			51,273			7,626		94,329
Cash and cash equivalents		972			720			190			3,445			667			99		387
Other assets		1,550			1,734			426			5,954			909			34		3,616

Total assets	$	70,725		$	72,165		$	20,522		$	226,481		$	52,849		$	7,759	$	98,332

Other liabilities	$	1,856		$	1,303		$	257		$	6,456		$	826		$	141	$	685
Secured debt maturities – 2014		—			39,725	⁽³⁾		—			—			16,675	⁽⁵⁾		—		—
Secured debt maturities – 2015		30,936	⁽²⁾		9,767	⁽³⁾		—			—			—			—		—
Secured debt maturities – 2016		—			—			8,298	⁽⁴⁾		—			—			—		—
Secured debt maturities – 2017		—			—			—			—			—			—		73,609	⁽⁶⁾
Secured debt maturities thereafter		—			—			—			—			—			—		12,086	⁽⁶⁾

Total secured debt		30,936			49,492			8,298			—			16,675			—		85,695

Total liabilities		32,792			50,795			8,555			6,456			17,501			141		86,380
Partners or members’ capital		37,933			21,370			11,967			220,025			35,348			7,618		11,952

Total liabilities and partners or members’ capital	$	70,725		$	72,165		$	20,522		$	226,481		$	52,849		$	7,759	$	98,332

⁽¹⁾	Although we contributed 100% of the initial cash equity capital required by the venture, after return of certain preferential distributions on capital invested, profits and losses are generally split 50/50.

⁽²⁾	$30.9 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 5.9%.

⁽³⁾	$39.7 million of debt requires interest only payments until 2014 and has a stated interest rate of 6.2%. $9.8 million of debt requires principal and interest payments through 2015 and has a stated interest rate of 6.6%.

⁽⁴⁾	$8.3 million of debt requires principal and interest payments until 2016 and has a stated interest rate of 7.4%.

⁽⁵⁾	DCT does not have any obligation under this debt.

⁽⁶⁾	$73.6 million of debt requires interest only payments through October 2017 and has a variable interest rate of LIBOR plus 2.2%. $12.1 million of debt is payable to DCT and requires principal and interest payments through November 2021 and has a fixed rate of 8.5%.

⁽⁷⁾	In January 2014, the TRT-DCT JV I and II ventures disposed of their properties, generating net proceeds of approximately $6.6 million to DCT. In connection with the disposition transactions, the debt of each venture was assumed by the buyer.


Fourth Quarter 2013				Page 14
Supplemental Reporting Package

Definitions

Adjusted EBITDA:

Adjusted EBITDA represents net loss attributable to common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, impairment losses, loss on business combinations, noncontrolling interest, and proportionate share of interest, depreciation and amortization from unconsolidated joint ventures, and excludes non-FFO gains. 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.

Annualized Base Rent:

Annualized Base Rent is calculated as monthly contractual base rent (cash basis) per the terms of the lease, as of period end, multiplied by 12.

Capital Expenditures:

Capital expenditures include building and land improvements, development costs and acquisition capital, tenant improvement and leasing costs required to maintain current revenues and/or improve real estate assets.

Cash Basis Rent Growth:

Cash basis rent growth is the ratio of the change in base rent due in the first month after the lease commencement date compared to the base rent of the last month prior to the termination of the lease, excluding new leases where there were no prior comparable leases. Free rent periods are not considered.

Cash Net Operating Income:

We calculate Cash Net Operating Income as Net Operating Income (as defined below) excluding non-cash amounts recorded for straight-line rents including related bad debt expense and the amortization of above and below market rents. See definition of Net Operating Income for additional information. DCT Industrial considers Cash NOI to be an appropriate supplemental performance measure because Cash NOI reflects the operating performance of DCT Industrial’s properties and excludes certain non-cash items that are not considered to be controllable in connection with the management of the property such as accounting adjustments for straight-line rent and the amortization of above and below market rent. Additionally, DCT Industrial presents Cash NOI, excluding revenue from lease terminations, as such revenue is not considered indicative of recurring operating performance.

Due Diligence Capital:

Capital improvements related to acquisitions generally incurred within 12 months of the acquisition date.

Effective Interest Rate:

Reflects the impact to interest rates of GAAP adjustments for discounts/premiums and hedging transactions. These rates do not reflect the impact of other interest expense items such as fees and the amortization of loan costs.

Fixed Charges:

Fixed charges include interest expense, interest capitalized, our proportionate share of our unconsolidated joint venture interest expense and adjustments for amortization of discounts, premiums, loan costs and other noncash interest expense.

Fixed Charge Coverage:

We calculate Fixed Charge Coverage as Adjusted EBITDA divided by total Fixed Charges.

Funds from Operations (“FFO”):

DCT Industrial believes that net income 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 attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains from dispositions of operating real estate held for investment purposes, plus impairment losses on depreciable real estate and impairments of in substance real estate investments in investees that are driven by measureable decreases in the fair value of the depreciable real estate held by the unconsolidated joint ventures 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, acquisition costs, debt modification costs and impairment losses on properties which are not depreciable. We believe that FFO excluding severance, acquisition costs, debt modification costs and impairment losses on non-depreciable real estate is useful supplemental information regarding our operating performance as it provides a more meaningful and consistent comparison of our operating performance and allows investors to more easily compare our operating results. 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 are common. Accordingly, DCT Industrial’s FFO may not be comparable to other REITs’ FFO and FFO should be considered only as a supplement to net income as a measure of DCT Industrial’s performance.

GAAP:

United States generally accepted accounting principles.

GAAP Basis Rent Growth:

GAAP basis rent growth is a ratio of the change in monthly Net Effective Rent (on a GAAP basis, including straight-line rent adjustments as required by GAAP) compared to the Net Effective Rent (on a GAAP basis) of the comparable lease. New leases where there were no prior comparable leases, due to extended downtime or materially different lease structures, are excluded.

Net Effective Rent:

Average base rental rate over the term of the lease, calculated in accordance with GAAP.


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Supplemental Reporting Package

Definitions

Net Operating Income (“NOI”):

NOI is defined as rental revenues, including expense reimbursements, less rental expenses and real estate taxes, and excludes institutional capital management fees, depreciation, amortization, casualty and involuntary conversion gain (loss), impairment, general and administrative expenses, equity in (earnings) loss of unconsolidated joint ventures, interest expense, interest and other income and income tax expense and other taxes. DCT Industrial considers NOI to be an appropriate supplemental performance measure because NOI reflects the operating performance of DCT Industrial’s properties and excludes certain items that are not considered to be controllable in connection with the management of the property such as amortization, depreciation, impairment, interest expense, interest income and general and administrative expenses. We also present NOI excluding lease termination revenue as it is not considered to be indicative of recurring operating performance. However, NOI should not be viewed as an alternative measure of DCT Industrial’s financial performance since it excludes expenses which could materially impact our results of operations. Further, DCT Industrial’s NOI may not be comparable to that of other real estate companies, as they may use different methodologies for calculating NOI. Therefore, DCT Industrial believes net income, as defined by GAAP, to be the most appropriate measure to evaluate DCT Industrial’s overall financial performance (in thousands).


	Three Months Ended December 31,						Twelve Months Ended December 31,
	2013			2012			2013			2012
Reconciliation of loss from continuing operations to NOI:
Loss from continuing operations	$	(2,280	)	$	(3,977	)	$	(9,251	)	$	(28,540	)
Income tax expense (benefit) and other taxes		(305	)		94			68			671
Interest and other (income) expense		37			142			(274	)		(85	)
Interest expense		16,066			17,504			63,394			69,274
Equity in earnings of unconsolidated joint ventures, net		(684	)		(303	)		(2,405	)		(1,087	)
General and administrative		8,187			6,855			28,010			25,763
Real estate related depreciation and amortization		35,368			28,477			130,002			109,993
Development profit		—			(307	)		(268	)		(307	)
Casualty and involuntary conversion gain		—			(1,033	)		(296	)		(1,174	)
Institutional capital management and other fees		(648	)		(916	)		(2,787	)		(4,059	)

Total GAAP net operating income		55,741			46,536			206,193			170,449
Less net operating income – out-of-period straight-line rent adjustment		—			(207	)		—			—
Less net operating income - non-same store properties		(11,071	)		(1,332	)		(37,936	)		(5,921	)

Same store GAAP net operating income		44,670			44,997			168,257			164,528
Less revenue from lease terminations		(229	)		(154	)		(1,057	)		(491	)

Same store GAAP net operating income, excluding revenue from lease terminations		44,441			44,843			167,200			164,037
Less straight-line rents, net of related bad debt expense		(377	)		(1,529	)		(799	)		(5,752	)
Less amortization of above/(below) market rents, net		(351	)		(307	)		(1,125	)		(688	)

Same store cash net operating income, excluding revenue from lease terminations	$	43,713		$	43,007		$	165,276		$	157,597

Projected Stabilized Yield – Projects Under Development:

Calculated as projected stabilized Net Operating Income divided by total projected investment.

Redevelopment:

Represents assets acquired with the intention to reposition or redevelop. May include buildings taken out of service for redevelopment where we generally expect to spend more than 20% of the building’s book value on capital improvements, if applicable.

Retention:

Calculated as (retained square feet + relocated square feet) / ((retained square feet + relocated square feet + expired square feet) - (square feet of vacancies anticipated at acquisition + month-to-month square feet + bankruptcy square feet + early terminations)).

Sales Price:

Contractual price of real estate sold before closing adjustments.

Same Store Population:

The same store population is determined independently for each period presented, quarter-to-date and year-to-date, by including all consolidated operating properties and properties Held for Sale that have been owned and stabilized for the entire current and prior periods presented.

Same Store Net Operating Income Growth:

The change in same store net operating income growth is calculated by dividing the change in NOI, year over year, by the preceding period NOI, based on a same store population for the quarter most recently presented.


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Supplemental Reporting Package

Definitions

Square Feet:

Represents square feet in building that are available for lease.

Stabilized:

Buildings are generally considered stabilized when 90% occupied.

Stock-based Compensation Amortization Expense:

Represents the non-cash amortization of the cost of employee services received in exchange for an award of an equity instrument based on the award’s fair value on the grant date and amortized over the vesting period.

Total Project Investment:

An estimate of total expected capital expenditures on development properties in accordance with GAAP.

Turnover Costs:

Turnover costs are comprised of the costs incurred or capitalized for improvements of vacant and renewal spaces, as well as the commissions paid and costs capitalized for leasing transactions. The amount indicated for leasing statistics represents the total turnover costs expected to be incurred on the leases signed during the period and does not reflect actual expenditures for the period.


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Supplemental Reporting Package

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