INDIANAPOLIS, IN -- (Marketwire) -- 01/25/12 -- Duke Realty Corporation (NYSE: DRE), a leading industrial, office and medical office property REIT, today reported results for the fourth quarter and full year 2011.

"We finished 2011 with an outstanding fourth quarter and made significant progress towards our asset, operating and capital strategic objectives," said Dennis D. Oklak, chairman and chief executive officer. "For the fourth quarter, we closed the $1 billion Blackstone sale and executed over $388 million of acquisitions. Operationally, we delivered Core FFO of $0.30 cents per share and achieved portfolio occupancy of 90.7 percent, a 160 basis points improvement over the prior year end. We also extended our unsecured line of credit for up to five years at less than half the cost of the previous facility. For the full year, we executed over 24.5 million square feet of leases and in alignment with our asset repositioning strategy closed $1.65 billion of asset dispositions and nearly $750 million of acquisitions. We also reduced our unsecured debt obligations and preferred equity by over $610 million, while closing the year with over $210 million in cash, which will be used for future property investment and de-leveraging."

Operating Highlights

Core funds from operations per diluted share ("Core FFO") was $0.30 for the quarter and $1.15 for the year. Funds from Operations per diluted share ("FFO") as defined by the National Association of Real Estate Investment Trusts ("NAREIT") was $0.24 for the quarter and $1.07 for the year. FFO, as defined by NAREIT, for the quarter included $12.9 million of impairment charges on land which is being held for sale and $3.4 million of severance charges neither of which are included in Core FFO. FFO, as defined by NAREIT, for the year also included a $3.8 million adjustment related to the redemption of our preferred N shares and $1.2 million of net acquisition costs, neither of which are included in Core FFO.

• Strong operating momentum:
  • Overall portfolio occupancy remained steady for the quarter and for the year increased to 90.7 percent.
  • Tenant retention rate was 78.5 percent for the quarter and 68.8 percent for the year.
  • Over 24.5 million square feet of leases were completed for the year.
  • Same property net operating income growth was positive 4.7 percent for the quarter and 3.2 percent for the year.
    
    
• Significant asset strategy execution:
  • Closed $388 million of bulk industrial and medical office building acquisitions for the quarter; and $747 million of total acquisitions for the year.
  • Generated over $1.1 billion of proceeds from dispositions during the quarter, primarily from the 79 building suburban office portfolio sale to Blackstone; $1.65 billion in total disposition proceeds for the year.
  • Achieved significant progress on our investment concentration objectives with our portfolio mix now at 54% industrial, 33% office, 9% medical office and 4% retail versus our strategic goal of 60% industrial, 25% office and 10% medical office.
    
    
• Successful capital strategy achievement:
  • Reduced unsecured debt by over $500 million and redeemed preferred equity of $110 million during the year.
  • Executed an early renewal of our $850 million unsecured revolving credit facility, and increased the potential maximum facility size to $1.25 billion, at significantly lower cost and extended the term up to five years.
  • Concluded the year with over $210 million in cash.
    
    
• 2012 Core FFO guidance introduced at $0.94 to $1.06 per share.
  

Financial Performance

• Core FFO per share for the fourth quarter was $0.30 compared with $0.28 for the fourth quarter of 2010. The improved result is primarily attributable to an increase in property and service operations income in the fourth quarter of 2011 over 2010. Core FFO per share for the year ended 2011 was $1.15, equal to the prior year. A reconciliation of FFO as defined by NAREIT to Core FFO is included in the financial tables included in this release.
  
  
• Net income per diluted share (EPS) for fourth quarter 2011 was $0.17, as compared to $0.04 for the same quarter in 2010. Fourth quarter 2011 EPS was positively impacted by increased gains on sales of assets. EPS for the year was $0.11 compared to a loss of $0.07 in 2010. The increase for 2011 was also attributable to a higher level of gains on sale of assets for the year compared to 2010.
  

Operating Performance

Operational highlights include:

• Overall portfolio occupancy, including projects under development, remained steady at 90.7 percent from the third quarter, and increased 160 basis points from year-end 2010 occupancy of 89.1 percent.
  
  
• Occupancy in the bulk distribution portfolio at year end was 91.9 percent, down from 92.4 percent at September 30, 2011, and increased 140 basis points from year-end 2010 occupancy of 90.5 percent.
  
  
• Occupancy in the suburban office portfolio at year end was 85.6 percent, down from 85.9 percent at September 30, 2011, and decreased 10 basis points from year-end 2010 occupancy of 85.7.
  
  
• Average tenant retention for the fourth quarter and year ended 2011 was 78.5 percent and 68.8 percent, respectively.
  
  
• Same-property net operating income for the three months ended December 31, 2011 increased 4.7 percent over the same period of 2010. For the twelve months ended December 31, 2011, same property net operating income increased by 3.2 percent over the same period of 2010.
  

Real Estate Investment Activity

Acquisitions

The company has a comprehensive asset strategy, which provides for increasing investment in industrial and medical office assets. In alignment with this strategy, the company acquired over $388 million of industrial and medical office assets totaling over 4.8 million square feet in the fourth quarter of 2011, bringing the total acquisitions to $747 million for the year.

The fourth quarter included the following strategic acquisitions:

• A portfolio of nine industrial buildings, eight in Chicago, IL and one in Los Angeles, CA, that were 100% leased and totaled 1.79 million square feet;
  
  
• Two industrial buildings totaling 1.35 million square feet in Dallas, TX, that were 100% leased;
  
  
• Two industrial buildings totaling 436,000 square feet in Chicago, IL, that were 100% leased;
  
  
• A portfolio of three industrial buildings totaling 356,000 square feet in Minneapolis, MN, that were 100% leased;
  
  
• Six medical office buildings totaling 363,000 square feet in Texas that were 97% leased;
  
  
• Five medical office buildings totaling 279,000 square feet in Indiana that were 100% leased.
  

Development

Wholly Owned Properties

• The company's wholly owned development projects under construction at December 31, 2011 consist of four medical office projects totaling 295,000 square feet and a 344,000 square foot office building project. These projects are 84 percent pre-leased in the aggregate.
  
  
• During the fourth quarter, the company started development of one medical office building. The project is 52,000 square feet and 52 percent pre-leased.
  
  
• Additionally, two medical office buildings totaling 79,000 square feet were placed into service.
  

Joint Venture Properties

• The company has one joint venture development project under construction at December 31, 2011, a 274,000 square foot medical office project which is 100 percent pre-leased to a single tenant.

Dispositions

Proceeds from fourth quarter building dispositions totaled $1.11 billion. Total dispositions for the year 2011, including land sales, were $1.65 billion.

Fourth quarter dispositions included the following:

• As previously announced in December 2011, the company closed on the sale of a 79 building suburban office portfolio totaling over 9.8 million square feet;
  
  
• A three building suburban office portfolio in Cleveland, OH, totaling 273,000 square feet;
  
  
• A three building industrial portfolio in Atlanta, GA, totaling 278,000 square feet;
  
  
• A 300,000 square foot industrial building located in Indianapolis, IN;
  
  
• A 300,000 square foot industrial building located in Dallas, TX.

Dividends Declared

The company's board of directors declared a quarterly cash dividend on the company's common stock of $0.17 per share, or $0.68 per share on an annualized basis. The fourth quarter dividend will be payable February 29, 2012, to shareholders of record as of February 15, 2012.

The board also declared the following dividends on the company's outstanding preferred stock:

                           Quarterly
   Class   NYSE Symbol    Amount/Share      Record Date       Payment Date
---------- ----------- ----------------- ----------------- -----------------
 Series J     DREPRJ       $0.414063     February 15, 2012 February 29, 2012
 Series K     DREPRK       $0.406250     February 15, 2012 February 29, 2012
 Series L     DREPRL       $0.412500     February 15, 2012 February 29, 2012
 Series M     DREPRM       $0.434375       March 21, 2012    April 2, 2012
 Series O     DREPRO       $0.523438       March 21, 2012    April 2, 2012

2012 Earnings Guidance

"We ended 2011 with another great year of success towards achieving our asset, operating and capital strategy objectives," Mr. Oklak stated. "Our outlook for 2012 reflects cautious optimism that the economy will continue to slowly improve. Our guidance also factors in our 2011 repositioning activity and a lower level of service operations revenue as a result of the wind down of the BRAC construction project."

The company announced full-year 2012 Core FFO guidance of $0.94 to $1.06 per share. The assumptions underlying the guidance are as follows:

1. Core FFO per share dilution from the December 2011 Blackstone sale of $0.10-$0.12, consistent with transaction disclosure from the 4th quarter;
2. Flat to modestly increased occupancy performance;
3. Modest same property net operating income growth;
4. Consistent overall construction starts, comprised of increased development activity offset by decreased third party construction;
5. Continued progress on asset strategy execution and growth with net acquisitions for the year;
6. A decrease in service operations income primarily related to the completion of the BRAC project;
7. Relatively flat G & A expense.

More specific assumptions and components of 2012 Core FFO will be available by 6:00 p.m. EST today through the Investor Relations-Financials section of the company's web-site.

Information Regarding FFO

Funds from Operations ("FFO"): FFO is computed in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT defines FFO as net income (loss) excluding gains (losses) on sales of depreciable property and extraordinary items (computed in accordance with generally accepted accounting principles ("GAAP")); plus real estate related depreciation and amortization, and after similar adjustments for unconsolidated joint ventures. We believe FFO to be most directly comparable to net income as defined by GAAP. We believe that FFO should be examined in conjunction with net income (as defined by GAAP) as presented in the financial statements accompanying this release. FFO does not represent a measure of liquidity, nor is it indicative of funds available for our cash needs, including our ability to make cash distributions to shareholders.

Core Funds from Operations ("Core FFO"): Core FFO is computed as FFO adjusted for certain items that are generally non-cash in nature and that materially distort the comparative measurement of company performance over time. The adjustments include impairment charges, tax expenses or benefit related to (i) changes in deferred tax asset valuation allowances, (ii) changes in tax exposure accruals that were established as the result of the adoption of new accounting principles, or (iii) taxable income (loss) related to other items excluded from FFO or Core FFO (collectively referred to as "other income tax items"), gains (losses) on debt transactions, adjustments on the repurchase of preferred stock, gains (losses) on and related costs of acquisitions, and severance charges related to major overhead restructuring activities. Although our calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance.

Adjusted Funds from Operations ("AFFO"): AFFO is defined by the company as Core FFO (as defined above), less recurring building improvements and second generation capital expenditures, and adjusted for certain non-cash items including straight line rental income, non-cash components of interest expense and stock compensation expense, and after similar adjustments for unconsolidated partnerships and joint ventures.

About Duke Realty

Duke Realty owns and operates more than 136 million rentable square feet of industrial and office, including medical office, space in 18 major U.S. cities. Duke Realty is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty is available at www.dukerealty.com.

Fourth Quarter Earnings Call and Supplemental Information

Duke Realty is hosting a conference call tomorrow, January 26, 2012, at 3:00 p.m. EST to discuss its fourth quarter operating results and 2012 guidance. All investors and other interested parties are invited to listen to the call. Access is available through the Investor Relations section of the company's Web site.

A copy of the company's supplemental information and a summary of the key assumptions of its 2012 Core FFO guidance will be available by 6:00 p.m. EST today through the Investor Relations section of the company's Web site.

Cautionary Notice Regarding Forward-Looking Statements

This news release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding the company's future financial position, projected financing sources, future transactions with joint venture partners, future dividends, and future performance, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of the company, members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "plans," "intends," "should," or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward-looking statements. Many of these factors are beyond the company's abilities to control or predict. Such factors include, but are not limited to, (i) general adverse economic and local real estate conditions, including the current economic recession; (ii) the inability of major tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; (iii) financing risks, such as the inability to obtain equity, debt or other sources of financing or refinancing on favorable terms, if at all; (iv) the company's ability to raise capital by selling its assets; (v) changes in governmental laws and regulations; (vi) the level and volatility of interest rates and foreign currency exchange rates; (vii) valuation of joint venture investments, (viii) valuation of marketable securities and other investments; (ix) increases in operating costs; (x) changes in the dividend policy for the company's common stock; (xi) the reduction in the company's income in the event of multiple lease terminations by tenants; and (xii) impairment charges. Additional information concerning factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the company's filings with the Securities and Exchange Commission. The company refers you to the section entitled "Risk Factors" contained in the company's Annual Report on Form 10-K for the year ended December 31, 2010. Copies of each filing may be obtained from the company or the Securities and Exchange Commission.

The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.

                          Duke Realty Corporation
                          Statement of Operations
                             December 31, 2011
                  (In thousands, except per share amounts)


                               Three Months Ended     Twelve Months Ended
                            ----------------------- -----------------------
                                  December 31,            December 31,
                            ----------------------- -----------------------
                                2011        2010        2011        2010
                            ----------- ----------- ----------- -----------
Revenues:
  Rental and related
   revenue                  $   193,464 $   179,841 $   752,478 $   678,795
  General contractor and
   service fee revenue          112,178     100,971     521,796     515,361
                            ----------- ----------- ----------- -----------
                                305,642     280,812   1,274,274   1,194,156
                            ----------- ----------- ----------- -----------
Expenses:
  Rental expenses                37,590      37,491     147,173     137,348
  Real estate taxes              23,216      22,406     103,724      89,718
  General contractor and
   other services expenses      101,299      94,433     480,480     486,865
  Depreciation and
   amortization                  86,724      77,770     330,450     279,606
                            ----------- ----------- ----------- -----------
                                248,829     232,100   1,061,827     993,537
                            ----------- ----------- ----------- -----------
Other Operating Activities
  Equity in earnings (loss)
   of unconsolidated
   companies                     (1,325)        455       4,565       7,980
  Gain on sale of
   properties                     1,638      32,745      68,549      39,662
  Undeveloped land carrying
   costs                         (1,913)     (2,051)     (8,934)     (9,203)
  Impairment charges            (12,931)          -     (12,931)     (9,834)
  Other operating expenses       (1,066)       (229)     (1,237)     (1,231)
  General and
   administrative expense       (13,876)    (10,158)    (43,107)    (41,329)
                            ----------- ----------- ----------- -----------
                                (29,473)     20,762       6,905     (13,955)
                            ----------- ----------- ----------- -----------

                            ----------- ----------- ----------- -----------
    Operating income (loss)      27,340      69,474     219,352     186,664
                            ----------- ----------- ----------- -----------

Other income (expense)
  Interest and other
   income, net                      115          30         658         534
  Interest expense              (55,590)    (50,029)   (223,053)   (189,094)
  Loss on debt transactions           -         (55)          -     (16,349)
  Acquisition-related
   activity                         337      (1,693)     (1,188)     55,820
                            ----------- ----------- ----------- -----------
    Income (loss) from
     continuing operations
     before income taxes        (27,798)     17,727      (4,231)     37,575
                            ----------- ----------- ----------- -----------

  Income tax benefit                  -           -         194       1,126
    Income (loss) from
     continuing operations      (27,798)     17,727      (4,037)     38,701
                            ----------- ----------- ----------- -----------

Discontinued Operations:
  Income (loss) before gain
   on sales                       3,567        (579)       (536)     (6,493)
  Gain on sale of
   depreciable properties        84,478       8,671     100,882      33,054
                            ----------- ----------- ----------- -----------
    Income from
     discontinued
     operations                  88,045       8,092     100,346      26,561

Net income                       60,247      25,819      96,309      65,262
Dividends on preferred
 shares                         (14,006)    (16,016)    (60,353)    (69,468)
Adjustments for
 redemption/repurchase of
 preferred shares                     -        (294)     (3,796)    (10,438)
Net (income) loss
 attributable to
 noncontrolling interests        (1,276)         43        (744)        536
                            ----------- ----------- ----------- -----------
    Net income (loss)
     attributable to common
     shareholders           $    44,965 $     9,552 $    31,416 $   (14,108)
                            =========== =========== =========== ===========

Basic net income (loss) per
 common share:
  Continuing operations
   attributable to common
   shareholders             $     (0.17)$      0.01 $     (0.28)$     (0.18)
  Discontinued operations
   attributable to common
   shareholders             $      0.34 $      0.03 $      0.39 $      0.11
                            ----------- ----------- ----------- -----------
Total                       $      0.17 $      0.04 $      0.11 $     (0.07)
                            =========== =========== =========== ===========

Diluted net income (loss)
 per common share:
  Continuing operations
   attributable to common
   shareholders             $     (0.17)$      0.01 $     (0.28)$     (0.18)
  Discontinued operations
   attributable to common
   shareholders             $      0.34 $      0.03 $      0.39 $      0.11
                            ----------- ----------- ----------- -----------
Total                       $      0.17 $      0.04 $      0.11 $     (0.07)
                            =========== =========== =========== ===========
                          Duke Realty Corporation
                     Statement of Funds From Operations
                             December 31, 2011
                  (In thousands, except per share amounts)


                                         Three Months Ended
                                            December 31,
                                            (Unaudited)
                        ---------------------------------------------------
                                   2011                      2010
                        ------------------------- -------------------------
                                    Wtd.                      Wtd.
                                    Avg.     Per              Avg.     Per
                          Amount   Shares   Share   Amount   Shares   Share
                        --------- -------- ------ --------- -------- ------
Net Income Attributable
 to Common Shareholders $  44,965                 $   9,552
Less: Dividends on
 share based awards
 expected to vest            (825)                     (728)
                        ---------                 ---------
Net Income Per Common
 Share- Basic              44,140  252,922 $ 0.17     8,824  252,130 $ 0.04
Add back:
  Noncontrolling
   interest in earnings
   of unitholders           1,228    6,950              200    5,290
  Other potentially
   dilutive securities
                        --------- --------        --------- --------
Net income Per Common
 Share- Diluted         $  45,368  259,872 $ 0.17 $   9,024  257,420 $ 0.04
                        ========= ========        ========= ========

Reconciliation to Funds
 From Operations
 ("FFO")
Net Income Attributable
 to Common Shareholders $  44,965  252,922        $   9,552  252,130
Adjustments:
  Depreciation and
   amortization            93,250                    96,098
  Company share of
   joint venture
   depreciation and
   amortization             8,889                     7,403
  Earnings from
   depreciable property
   sales-wholly owned,
   discontinued
   operations             (84,478)                   (8,671)
  Earnings from
   depreciable property
   sales-wholly owned,
   continuing
   operations              (1,638)                  (32,745)
  Noncontrolling
   interest share of
   adjustments               (438)                   (1,276)
                        --------- --------        --------- --------
Funds From Operations-
 Basic                     60,550  252,922 $ 0.24    70,361  252,130 $ 0.28
  Noncontrolling
   interest in income
   of unitholders           1,228    6,950              200    5,290
  Noncontrolling
   interest share of
   adjustments                438                     1,276
  Other potentially
   dilutive securities               3,550                     2,984
                        --------- --------        --------- --------
Funds From Operations-
 Diluted                $  62,216  263,422 $ 0.24 $  71,837  260,404 $ 0.28
  Loss on debt
   transactions                 -                        55
  Adjustments for
   redemption/repurchas
   e of preferred
   shares                       -                       294
  Impairment charges -
   non-depreciable
   properties              12,931                         -
  Acquisition-related
   activity                  (337)                    1,693
  Overhead
   restructuring            3,407                         -
                        --------- --------        --------- --------
Core Funds From
 Operations- Diluted    $  78,217  263,422 $ 0.30 $  73,879  260,404 $ 0.28
                        ========= ========        ========= ========


                                         Twelve Months Ended
                                            December 31,
                                             (Unaudited)
                        ---------------------------------------------------
                                   2011                      2010
                        ------------------------- -------------------------
                                    Wtd.                      Wtd.
                                    Avg.     Per              Avg.     Per
                          Amount   Shares   Share   Amount   Shares   Share
                        --------- -------- ------ --------- -------- ------
Net Income (Loss)
 Attributable to Common
 Shareholders           $  31,416                 $ (14,108)
Less: Dividends on
 share based awards
 expected to vest          (3,243)                   (2,513)
                        ---------                 ---------
Net Income (Loss) Per
 Common Share- Basic       28,173  252,694 $ 0.11   (16,621) 238,920 $(0.07)
Add back:
  Noncontrolling
   interest in earnings
   of unitholders             859    6,904                -
  Other potentially
   dilutive securities
                        --------- --------        --------- --------
Net Income (Loss) Per
 Common Share- Diluted  $  29,032  259,598 $ 0.11 $ (16,621) 238,920 $(0.07)
                        ========= ========        ========= ========

Reconciliation to Funds
 From Operations
 ("FFO")
Net Income (Loss)
 Attributable to Common
 Shareholders           $  31,416  252,694        $ (14,108) 238,920
Adjustments:
  Depreciation and
   amortization           385,679                   360,184
  Company share of
   joint venture
   depreciation and
   amortization            33,687                    34,674
  Earnings from
   depreciable property
   sales-wholly owned,
   discontinued
   operations            (100,882)                  (33,054)
  Earnings from
   depreciable property
   sales-wholly owned,
   continuing
   operations             (68,549)                  (39,662)
  Earnings from
   depreciable property
   sales-JV                   (91)                   (2,308)
  Noncontrolling
   interest share of
   adjustments             (6,644)                   (7,771)
                        --------- --------        --------- --------
Funds From Operations-
 Basic                    274,616  252,694 $ 1.09   297,955  238,920 $ 1.25
  Noncontrolling
   interest in income
   (loss) of
   unitholders                859    6,904             (351)   5,950
  Noncontrolling
   interest share of
   adjustments              6,644                     7,771
  Other potentially
   dilutive securities               3,588                     2,934
                        --------- --------        --------- --------
Funds From Operations-
 Diluted                $ 282,119  263,186 $ 1.07 $ 305,375  247,804 $ 1.23
  Loss on debt
   transactions                 -                    16,349
  Adjustments for
   repurchases of
   preferred shares         3,796                    10,438
  Impairment charges -
   non-depreciable
   properties              12,931                     9,834
  Acquisition-related
   activity                 1,188                   (55,820)
  Other income tax
   items                     (194)                   (1,126)
  Overhead
   restructuring            3,407                         -
                        --------- --------        --------- --------
Core Funds From
 Operations- Diluted    $ 303,247  263,186 $ 1.15 $ 285,050  247,804 $ 1.15
                        ========= ========        ========= ========

                          Duke Realty Corporation
                               Balance Sheet
                             December 31, 2011
                  (In thousands, except per share amounts)




                                                December 31,   December 31,
                                                    2011           2010
                                               -------------  -------------
ASSETS:

  Rental Property                              $   6,038,107  $   7,032,889
  Less: Accumulated Depreciation                  (1,127,595)    (1,406,437)
  Construction in Progress                            44,497         61,776
  Undeveloped Land                                   622,235        625,353
                                               -------------  -------------
    Net Real Estate Investments                    5,577,244      6,313,581
                                               -------------  -------------

  Cash                                               213,809         18,384
  Accounts Receivable                                 22,428         23,478
  Straight-line Rents Receivable                     108,392        135,294
  Receivables on Construction Contracts,
   Including Retentions                               40,247          7,564
  Investments in and Advances to Unconsolidated
   Companies                                         364,859        367,445
  Deferred Financing Costs, Net                       42,268         46,320
  Deferred Leasing and Other Costs, Net              463,983        545,787
  Escrow Deposits and Other Assets                   170,807        186,423
                                               -------------  -------------

    Total Assets                               $   7,004,037  $   7,644,276
                                               =============  =============

LIABILITIES AND SHAREHOLDERS' EQUITY:

  Secured Debt                                 $   1,173,233  $   1,065,628
  Unsecured Notes                                  2,616,063      2,948,405
  Unsecured Line of Credit                            20,293        193,046
  Construction Payables and Amounts due
   Subcontractors                                     55,916         44,892
  Accrued Real Estate Taxes                           69,470         91,502
  Accrued Interest                                    58,904         62,407
  Accrued Expenses                                    60,230         63,175
  Other Liabilities                                  131,735        130,711
  Tenant Security Deposits and Prepaid Rents          38,935         54,607
                                               -------------  -------------

    Total Liabilities                              4,224,779      4,654,373
                                               -------------  -------------

  Preferred Stock                                    793,910        904,540
  Common Stock and Additional Paid-in Capital      3,597,117      3,576,242
  Accumulated Other Comprehensive Loss                   987         (1,432)
  Distributions in Excess of Net Income           (1,677,328)    (1,533,740)
                                               -------------  -------------

    Total Shareholders' Equity                     2,714,686      2,945,610
                                               -------------  -------------

  Noncontrolling Interest                             64,972         44,293
                                               -------------  -------------

    Total Liabilities and Equity               $   7,004,437  $   7,644,276
                                               =============  =============