Duke Realty : 2021 Range of Estimates ( as of July 28, 2021)

2021 Range of Estimates

Updated July 28, 2021

(dollars in millions except per share amounts)

		2020	2021		Range of Estimates
Metrics
	Actual	YTD		Pessimistic	Optimistic		Key Assumptions
Net Income per Share Attributable to	$0.80	$0.68		$2.13	$2.39		- Previous guidance in a range of $1.86 to $2.24 per share.
Common Shareholders - Diluted								- Higher gains on property sales in 2021 compared to 2020.
Nareit FFO per Share Attributable to	$1.40	$0.81		$1.62	$1.68		- Previous guidance in a range of $1.60 to $1.70 per share.
Common Shareholders - Diluted								- Quicker lease-up of new developments.
								- 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	$0.83		$1.69	$1.73		- Previous guidance in a range of $1.65 to $1.71 per share.
Common Shareholders - Diluted								- Quicker lease-up of new developments.
								- Lower bad debt expense than previous estimates.
								- Strong rent growth.
Growth in AFFO - Share Adjusted	6.2%	8.6%		10.1%	13.0%		- Previous guidance in a range of 8.0% to 12.3%.
								- Driven by same factors impacting Core FFO.
Average Percentage Leased	97.6%	98.2%		97.8%	98.6%		- Previous guidance in a range of 97.2% to 98.6%.
(stabilized portfolio)								- Demand exceeding previous estimates.
								- Less downtime from troubled tenant move-outs than previous estimates.
Average Percentage Leased	97.0%	97.7%		97.1%	97.9%		- Previous guidance in a range of 96.3% to 97.7%.
(In-service portfolio)								- Driven by same factors impacting stabilized portfolio.
								- Quicker leasing of speculative development.
Same Property NOI - Cash	5.0%	6.2%		4.75%	5.25%		- Previous guidance in a range of 4.1% to 4.9%.
								- Increased occupancy from previous estimates.
								- Continued strong rent growth, embedded lease escalations.
Same Property NOI - Net Effective	2.8%	5.7%		3.75%	4.25%		- Previous guidance in a range of 3.1% to 3.9%.
								- Less downtime from troubled tenant move-outs than previous estimates.
								- Lower straight-line rent bad debt than 2020.
Building Acquisitions	$411	$312		$350	$550		- Previous guidance in a range of $300 to $500.
(Duke share)								- Coastal markets focus.
Building Dispositions		$322	$277		$1,000	$1,200		- Previous guidance in a range of $900 to $1,100.
(Duke share)								- Better pricing than previous estimates.
								- Manage tenant concentration.
Development Starts	$796	$609		$1,100	$1,300		- Previous guidance in a range of $950 to $1,150.
(JVs at 100%)								- Leasing success driving speculative activity.
Service Operations Income		$6	$5		$9	$11		- Previous guidance in a range of $8 to $10.
								- Third party development.
General & Administrative Expense	$58	$40		$65	$61		- Previous guidance in a range of $61 to $57.
								- Compensation commensurate with performance.
								- Excludes overhead restructuring costs.
Effective Leverage (Gross Book Basis)		32%	32%		33%	29%
Fixed Charge Coverage (TTM)		5.6X	6.0X	5.8X	6.2X		- Previous guidance in a range of 5.7X to 6.1X.
Net Debt to Core EBITDA (TTM)					4.8X		- Maintain Baa1/BBB+ ratings.
	5.2X	5.3X	5.2X