Real Estate Central

DENVER, May 1 /PRNewswire-FirstCall/ — DCT Industrial Trust Inc.
(NYSE: DCT), a leading industrial real estate investment trust, today
announced financial results for the quarter ended March 31, 2008.

Funds from operations (FFO) attributable to common stockholders totaled
$30.2 million, or $0.15 per diluted share, for the first quarter of 2008,
compared to $33.3 million, or $0.17 per diluted share, reported for the
first quarter of 2007.

Net income attributable to common stockholders for the first quarter of
2008 was $0.4 million, or $0.00 per diluted share, compared to $15.4
million, or $0.09 per diluted share, reported for the first quarter of
2007. First quarter 2008 net income includes approximately $0.8 million of
gains on the contribution or sale of real estate, of which $0.2 million was
recognized in FFO, which compares to $17.4 million of gains on the
contribution or sale of real estate included in net income in the first
quarter of 2007, of which $3.7 million was included in FFO.

Phil Hawkins, Chief Executive Officer of DCT Industrial, commented,
“While signs of a slowing U.S. economy are becoming more apparent, our
leasing activity, rental rate growth and tenant retention remain healthy.
With disruptions in the credit markets continuing and the economy
softening, we continue to believe that interesting investment opportunities
will present themselves later in 2008 or 2009, and we are well positioned
to capitalize on those opportunities with our strong balance sheet and
proven organization.”

Operating Portfolio

As of March 31, 2008, the Company owned 381 consolidated operating
properties, or 53.5 million square feet, compared to 367 consolidated
operating properties, or 53.8 million square feet, as of March 31, 2007.
Net operating income was $48.1 million in the first quarter of 2008, down
slightly from $48.5 million reported for the first quarter of 2007,
primarily due to asset sales and contributions. DCT Industrial’s
consolidated operating portfolio occupancy was 93.2% at March 31, 2008,
compared to 93.1% at March 31, 2007. Including an additional 12.5 million
square feet of operating properties held in joint ventures, occupancy at
March 31, 2008 was 94.3%, up from 93.7% a year ago.

Same store net operating income decreased 0.6% on both a cash basis and
on a GAAP basis in the first quarter of 2008, when compared to the same
period last year, primarily due to higher bad debt expense related to a
tenant bankruptcy. Occupancy of same store properties was 93.3% as of March
31, 2008, compared to 92.9% as of March 31, 2007.

DCT Industrial signed 1.9 million square feet of leases during the
first quarter. Tenant retention continued to be favorable, with a rate of
72.0% for the first quarter of 2008. Realized rent growth on signed leases
for which there was a prior tenant averaged 11.1% on a GAAP basis and 2.4%
on a cash basis in the first quarter of 2008.

Institutional Capital Management

The Company’s institutional capital management business had assets
under management of $737.5 million at March 31, 2008, representing an
increase of $51.3 million during the first quarter, and an increase of
$379.5 million from March 31, 2007. Capital management and other fee
revenue totaled $0.9 million in the first quarter of 2008, compared to $0.7
million in the first quarter of 2007.

Investment, Disposition and Development Activity

“In the first quarter, our capital deployment activity was consistent
with our business plan outlined at the beginning of the year,” said Phil
Hawkins. “We didn’t acquire any operating properties on balance sheet and
we have been actively marketing a number of assets for disposition and have
received solid interest from potential buyers.”

As of March 31, 2008, DCT Industrial had 9.2 million square feet under
development. During the first quarter, the Company contributed
approximately 50 acres in Atlanta to a development joint venture with
Industrial Developments International, which will support approximately
600,000 square feet of development, and initiated development of a 1.0
million square foot bulk distribution building at SCLA (Southern California
Logistics Airport).

Progress continued in Mexico as the Company took ownership of 547,000
square feet of industrial buildings during the first quarter of 2008 under
its forward commitment with Nexxus in Monterrey. In addition, due to the
success of leasing, DCT Industrial initiated development of an additional
482,000 square feet of industrial buildings in Monterrey, of which 128,000
square feet is pre-leased. To date, the Company has developed or is
constructing 1.4 million square feet in Monterrey and has experienced
excellent activity, with more than 700,000 square feet of executed leases
or building sales to users over the past 15 months.

“Two main areas of focus for development, Mexico and SCLA, continued to
perform well during the first quarter.” said Jim Cochran, President and
Chief Investment Officer of DCT Industrial. “Leasing activity remains
strong in Mexico and we are pleased with the level of interest from users
to either lease space or acquire land for their own facilities at SCLA.”

Balance Sheet

During the first quarter, DCT Industrial exercised a five-year
extension option on $175 million of a senior unsecured note, originally
scheduled to mature in June 2008, at a rate of 6.11%. DCT Industrial’s
balance sheet remains strong, with consolidated debt to book value of total
assets (before depreciation and amortization) of 38.2% as of March 31,
2008, compared to 37.4% at December 31, 2007.

Guidance

DCT Industrial has reaffirmed its 2008 guidance of FFO per diluted
share of $0.68 to $0.73 and net income of $0.13 to $0.18 per diluted share.

Conference Call Information

DCT Industrial will host a conference call to discuss first quarter
results and its recent business activities on Friday, May 2, 2008 at 12:00
PM Eastern. Stockholders and interested parties may listen to a live
broadcast of the conference call by dialing (800) 860-2442 or (412)
858-4600. A telephone replay will be available for one week following the
call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode:
418012. A live webcast and replay of the conference call will be available
on the investor relations page of DCT’s website at
http://www.dctindustrial.com.

Supplemental information will be available in the Investor Relations
section of the Company’s website at http://www.dctindustrial.com or by
e-mail request at investorrelations@dctindustrial.com. Interested parties
may also obtain supplemental information from the SEC’s website at
http://www.sec.gov.

About DCT Industrial Trust

DCT Industrial Trust Inc. is a leading industrial real estate company
that owns, operates and develops high-quality bulk distribution and light
industrial properties in high-volume distribution markets in the U.S. and
Mexico. As of March 31, 2008, the Company owned, managed or had under
development 76.9 million square feet of assets leased to approximately 850
corporate customers, including 12.1 million square feet managed on behalf
of three institutional joint venture partners. Additional information is
available at http://www.dctindustrial.com.





DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Balance Sheets
(in thousands, except share and per share information)

March December
31, 31,
2008 2007
(unaudited)
ASSETS
Land $517,946 $519,584
Buildings and improvements 2,166,152 2,139,961
Intangible lease assets 187,510 188,079
Construction in progress 34,815 35,282
Total Investment in Properties 2,906,423 2,882,906
Less accumulated depreciation and amortization (339,922) (310,691)
Net Investment in Properties 2,566,501 2,572,215
Investments in and advances to unconsolidated
joint ventures 114,419 102,750
Net Investment in Real Estate 2,680,920 2,674,965
Cash and cash equivalents 24,660 30,481
Notes receivable 23,123 27,398
Deferred loan costs, net 4,448 4,828
Deferred loan costs - financing obligations, net - 1,345
Straight-line rent and other receivables 27,978 26,879
Other assets, net 10,875 13,096
Total Assets

,772,004

,778,992

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Accounts payable and accrued expenses

6,617 $31,267
Distributions payable 33,274 32,994
Tenant prepaids and security deposits 14,526 13,896
Other liabilities 11,047 8,117
Intangible lease liability, net 8,041 9,022
Line of credit 145,000 82,000
Senior unsecured notes 425,000 425,000
Mortgage notes 618,101 649,568
Financing obligations - 14,674
Total Liabilities 1,281,606 1,266,538
Minority interests 356,061 349,782
Stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000
shares authorized, none outstanding - -
Shares-in-trust, $0.01 par value, 100,000,000
shares authorized, none outstanding - -
Common stock, $0.01 par value, 350,000,000
shares authorized, 168,385,903 and
168,379,863 shares issued and outstanding as of
March 31, 2008 and December 31, 2007,
respectively 1,684 1,684
Additional paid-in capital 1,593,352 1,593,165
Distributions in excess of earnings (452,793) (426,210)
Accumulated other comprehensive loss (7,906) (5,967)
Total Stockholders’ Equity 1,134,337 1,162,672
Total Liabilities and Stockholders’
Equity

,772,004

,778,992

Book value of total assets before depreciation:
Total Assets

,772,004

,778,992
Add back accumulated depreciation and
amortization 339,922 310,691
Book value of total assets before
depreciation and amortization $3,111,926 $3,089,683
Percentage of debt to total assets 42.8% 41.6%
Percentage of debt to book value of total assets
before depreciation and amortization 38.2% 37.4%



DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

Consolidated Statements of Operations
(unaudited, in thousands, except per share information)

Three Months Ended
March 31,
2008 2007
REVENUES:
Rental revenues $65,463 $64,860
Institutional capital management and other fees 860 746
Total Revenues 66,323 65,606

OPERATING EXPENSES:
Rental expenses 8,704 7,837
Real estate taxes 8,632 8,497
Real estate related depreciation and amortization 29,103 28,695
General and administrative 5,882 4,056
Total Operating Expenses 52,321 49,085

Operating Income 14,002 16,521

OTHER INCOME AND EXPENSE:
Equity in income of unconsolidated joint
ventures, net 287 74
Interest expense (14,550) (16,821)
Interest income and other 434 982
Income taxes (549) (471)

Income (Loss) Before Minority Interests (376) 285
Minority interests 109 45
Income (Loss) From Continuing Operations (267) 330
Income from discontinued operations 289 8,276
Income Before Gain On Dispositions Of
Real Estate Interests 22 8,606
Gain on dispositions of real estate interests, net
of minority interest 362 6,749

NET INCOME $384 $15,355

INCOME PER COMMON SHARE - BASIC:
Income (Loss) From Continuing Operations $(0.00) $0.00
Income from discontinued operations 0.00 0.05
Gain on dispositions of real estate interests, net
of minority interest 0.00 0.04
Net Income $0.00 $0.09

INCOME PER COMMON SHARE - DILUTED:
Income (Loss) From Continuing Operations $(0.00) $0.00
Income from discontinued operations 0.00 0.05
Gain on dispositions of real estate interests, net
of minority interest 0.00 0.04
Net Income $0.00 $0.09

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 168,386 168,355
Diluted 207,278 196,720



DCT Industrial Trust Inc. and Subsidiaries

Summary Consolidated Statements of Funds From Operations
(in thousands, except per share information)

For the Three Months
Ended March 31,
2008 2007
Net income attributable to common shares $384 $15,355
Adjustments:
Real estate related depreciation and amortization 29,143 28,783
Equity in (income) of unconsolidated
joint ventures, net (287) (74)
Equity in FFO of unconsolidated joint ventures 1,467 396
(Gain) on dispositions of real estate interests,
net of minority interest (656) (14,933)
(Gain) on dispositions of non-depreciated real
estate, net of minority interest 199 3,176
Minority interest in the operating partnership’s
share of the above adjustments (5,688) (4,183)
Funds from operations attributable to common
shares - basic 24,562 28,520
FFO attributable to dilutive OP Units 5,671 4,797
Funds from operations attributable to common
shares - diluted $30,233 $33,317

Basic FFO per common share $0.15 $0.17
Diluted FFO per common share $0.15 $0.17

Weighted average common shares outstanding:
Basic 168,386 168,355
Dilutive OP Units 38,892 28,365
Diluted 207,278 196,720



Guidance:

Full-Year Range for
2008
Guidance: (low) (high)
Earnings per diluted share $0.13 $0.18
Real estate related depreciation and
amortization 0.55 0.55
FFO attributable to common shares per diluted
share $0.68 $0.73

Guidance excludes future gains or losses from sale of depreciated assets.


The following table is a reconciliation of our property NOI to our
reported “Income (Loss) From Continuing Operations” for the three months
ended March 31, 2008 and 2007 (in thousands):



For the Three Months
Ended
March 31,
2008 2007
Same store NOI $43,352 $43,592
Non-same store NOI and revenues related to
early lease terminations and buyout, net 4,775 4,934
Total NOI 48,127 48,526
Institutional capital management and other fees 860 746
Real estate related depreciation and
amortization (29,103) (28,695)
General and administrative expense (5,882) (4,056)
Equity in income of unconsolidated joint
ventures, net 287 74
Interest expense (14,550) (16,821)
Interest income and other 434 982
Income taxes (549) (471)
Minority interests 109 45
Income (Loss) from Continuing Operations $(267) $330



The following table is a reconciliation of our same store NOI to our cash
basis same store NOI for the three months ended March 31, 2008 and 2007 (in
thousands).

Three Months Ended
March 31,
2008 2007
Same store NOI $43,352 $43,592
Less straight-line rents (727) (1,254)
Less amortization of above/below market rents 72 618
Cash basis same store NOI $42,697 $42,956


Financial Measures

Net operating income (”NOI”) is defined as rental revenue, including
reimbursements, less rental expenses and real estate taxes, and excludes
depreciation, amortization, general and administrative expenses and
interest expense. DCT Industrial considers NOI, same store NOI and cash
basis same store NOI to be appropriate supplemental performance measures
because they reflect the operating performance of DCT Industrial’s
properties and exclude certain items that are not considered to be
controllable in connection with the management of the property such as
depreciation, interest expense, interest income and general and
administrative expenses. However, these measures should not be viewed as
alternative measures of DCT Industrial’s financial performance since they
exclude expenses which could materially impact our results of operations.
Further, DCT Industrial’s NOI, same store NOI and cash basis same store NOI
may not be comparable to that of other real estate companies, as they may
use different methodologies for calculating these measures. Therefore, DCT
Industrial believes net income, as defined by GAAP, to be the most
appropriate measure to evaluate DCT Industrial’s overall financial
performance.

DCT Industrial believes that net income, 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 measure of
DCT Industrial’s operating performance. NAREIT developed FFO as a relative
measure of performance and liquidity 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, calculated in accordance with GAAP, plus real
estate-related depreciation and amortization, less gain (or loss) from
dispositions of real estate held for investment purposes and adjustments to
derive DCT Industrial’s pro rata share of FFO of consolidated and
unconsolidated joint ventures. 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. Other REITs may
not calculate FFO in accordance with the NAREIT definition and,
accordingly, DCT Industrial’s FFO may not be comparable to such other
REITs’ FFO. Accordingly, FFO should be considered only as a supplement to
net income as a measure of DCT Industrial’s performance.

Forward-Looking Information

The Company makes statements in this document 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. The Company intends 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 the Company’s current
views about its plans, intentions, expectations, strategies and prospects,
which are based on the information currently available to the Company and
on assumptions it has made. Although the Company believes that its plans,
intentions, expectations, strategies and prospects as reflected in or
suggested by those forward-looking statements are reasonable, the Company
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 its
control including, without limitation: the competitive environment in which
the Company operates; 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 and dispositions; natural disasters such as
hurricanes, fires and earthquakes; national, international, regional and
local economic conditions, including, in particular the recent softening of
the U.S. economy; the general level of interest rates and the availability
of debt financing, particularly in light of the recent disruption in the
credit markets; energy costs; the terms of governmental regulations that
affect the Company and interpretations of those regulations, including
changes in real estate and zoning laws and increases in real property tax
rates; financing risks, including the risk that the Company’s cash flows
from operations may be insufficient to meet required payments of principal
and interest; 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; possible
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 the Company; and other risks and
uncertainties detailed from time to time in DCT Industrial Trust’s filings
with the Securities Exchange Commission. In addition, the Company’s current
and continuing qualification as a REIT involves the application of highly
technical and complex provisions of the Internal Revenue Code of 1986, or
the Code, and depends on its ability to meet the various requirements
imposed by the Code through actual operating results, distribution levels
and diversity of stock ownership. The Company assumes no obligation to
update publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.



See Also

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Source: Real Estate Newswire