Duke Realty 3Q Results Beat The Street

Duke Realty

reported core 3Q results that were ahead of Citi's and the Street estimates. Results were clean and generally of high quality. Leasing volume in the Qtr was robust and occupancy increased 100bp. 2010 guidance has increased to $1.11-$1.15 from what had been a wide range previously of $0.95-$1.15. Implied 4Q guidance of 24c-28c is roughly in-line with our and consensus estimates of 26c. Overall, a positive report against low investor expectations for suburban office companies, and DRE in particular. Should be well received. Citi maintains a Buy on relative value combined with lease-up opportunity and greater leverage than peers, which should work in DRE's favor as fundamentals improve. Citi has a Buy rating with a $14 PT on DRE DRE closed Wednesday at $11.96