Duke Realty Corporation Reports Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for 2018
For the year, net income was $4.56 per diluted share, or $1.65 billion compared to $0.88 per diluted share, or $315 million, for the full year 2016. The increased net income per diluted share for the full year was also primarily the result of gains on property sales. FFO was $1.27 per diluted share, or $460 million, for the full year 2017 compared to $1.21 per diluted share for the full year 2016. The increased FFO per diluted share for the full year was primarily due to lower losses on debt extinguishment and land impairment charges during 2017 in addition to an overall improvement in key operating metrics. Core FFO was $1.24 per diluted share, or $450 million compared to $1.20 for the full year 2016. The increase in Core FFO for the full year was due to lower interest expense in 2017, as disposition proceeds were used to significantly reduce leverage.
For 2018, the company issued guidance for net income of $0.68 to $0.98 per diluted share. The company issued guidance for FFO, as defined by NAREIT, of $1.24 to $1.32 per diluted share. Adjusted funds from operations on a share adjusted basis, ranges from 2.7% to 8.2% and is driven largely by the same reasons as the growth in Core FFO. Guidance for same property NOI growth ranges from 3.25% to 4.75% and the projected growth is anticipated to be from continued strong rental rate increases as stabilized occupancy levels are expected to decrease slightly from current record levels. The company also announced growth in AFFO per share basis to range between 2.7% and 8.2%, with the midpoint of 5.5%.