Duke Realty : 2021 Range of Estimates (as of January 27, 2021)

2021 Range of Estimates

Updated January 27, 2021

(dollars in millions except per share amounts)

		2020 Actual		Range of Estimates
Metrics
	(Unaudited)		Pessimistic	Optimistic			Key Assumptions
Net Income per Share Attributable to	$0.80		$1.24	$1.58		- Higher gains on property sales in 2021 compared to 2020.
Common Shareholders - Diluted
NAREIT FFO per Share Attributable to	$1.40		$1.58	$1.68		- Lease-up of new developments.
Common Shareholders - Diluted							- Less impact from debt transactions in 2021 compared to 2020.
							- Expense impact of internal leasing costs, $0.02 to $0.04.
Core FFO per Share Attributable to	$1.52		$1.62	$1.68		- Lease-up of new developments.
Common Shareholders - Diluted							- Strong rent growth.
Growth in AFFO - Share Adjusted	6.2%		5.8%	10.1%		- Driven by same factors impacting Core FFO.
Average Percentage Leased	97.6%		96.6%	98.6%		- Pushing rents at expense of some occupancy.
(stabilized portfolio)							- Modest default risk.
Average Percentage Leased	97.0%		95.7%	97.7%	-	Driven by same factors impacting stabilized portfolio.
(In-service portfolio)						-	2020 vacant building acquisition and speculative development.
Same Property NOI - Cash	5.0%		3.6%	4.4%	-	Continued solid rent growth, embedded lease escalations.
						-	Partially offset by expected lower occupancy.
Same Property NOI - Net Effective	2.8%		2.5%	3.3%	-	Lower straight-line rent bad debt than 2020.
Building Acquisitions	$411		$200	$400		- Coastal markets focus.
(Duke share)
Building Dispositions		$322		$500	$700		- Primarily non-Tier 1 markets.
(Duke share)							- Manage tenant concentration.
Development Starts	$796		$700	$900		- Speculative starts in targeted growth markets.
(JVs at 100%)							- Maintain occupancy under construction near 50%.
Service Operations Income		$6		$5	$7		- Consistent levels of volume.
General & Administrative Expense	$58		$59	$55		- Consistent overhead levels.
						-	Excludes overhead restructuring costs.
Effective Leverage (Gross Book Basis)		32%		33%	29%
Fixed Charge Coverage (TTM)		5.6X	5.7X	6.1X
Net Debt to Core EBITDA (TTM)				4.8X		- Maintain Baa1/BBB+ ratings.
	5.2X	5.2X