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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): October 27, 1999
DUKE-WEEKS REALTY LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Indiana 0-20625 35-1898425
(State or jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
8888 KEYSTONE CROSSING, SUITE 1200
INDIANAPOLIS, INDIANA 46240
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (317) 808-6000
Not applicable
(Former name or former address, if changed since last report)
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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Exhibit
Number Exhibit
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99 Press release dated October 27, 1999.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DUKE-WEEKS REALTY LIMITED PARTNERSHIP
By: DUKE-WEEKS REALTY CORPORATION,
General Partner
Date: November 9, 1999 By: /s/ Dennis D. Oklak
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Dennis D. Oklak
Executive Vice President,
Chief Administrative
Officer and Treasurer
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For Immediate Release For Investor Inquires, contact:
October 27, 1999 Thomas K. Peck
99-14 317/808-6168
For Media Inquires, contact:
Donna M. Hovey
317/808-6137
DUKE-WEEKS ANNOUNCES 18.8 PERCENT GROWTH IN
THIRD QUARTER FFO PER SHARE
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FFO PER SHARE EXCEEDS 10 PERCENT FOR THE SIXTEENTH CONSECUTIVE QUARTER
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COMMON AND PREFERRED STOCK DIVIDENDS ALSO ANNOUNCED
INDIANAPOLIS - Duke-Weeks Realty Corporation (DRE/NYSE) reported
today that funds from operations ("FFO") increased 74.5 percent to $68.8
million for the third quarter of 1999 versus $39.4 million for the same
period in 1998. On a per share basis, FFO increased 18.8 percent to $.57 per
share in the third quarter of 1999 from $.48 per share for the third quarter
of 1998. This is the Company's sixteenth consecutive quarter of double-digit
growth in FFO per share. For the first nine months of 1999, the Company
reported FFO per share of $1.62, a 16.6 percent increase over 1998.
Net income available for common shareholders for the third quarter
of 1999 increased to $41.5 million on revenues of $175.7 million, up from
$23.4 million on revenues of $97.6 million for the third quarter last year.
On a per share basis, third quarter net income available for common
shareholders increased 20.7 percent to $.35 per share compared with $.29 per
share for the third quarter of 1998. For the first nine months of 1999, net
income available for common shareholders increased 19.1 percent to $1.00 per
share, compared with $.84 per share for the same period in 1998. All per
share amounts reported are diluted with basic per share information also
included in the financial table accompanying this press release.
The Company also announced today that its Board of Directors
declared a quarterly dividend of $.39 per share, or $1.56 per share on an
annualized basis. The dividend is payable on November 30, 1999 to common
shareholders of record on November 19, 1999.
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The Board also declared today the following dividends on the
Company's outstanding preferred stock:
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NYSE Quarterly
CLASS SYMBOL AMOUNT/SHARE RECORD DATE PAYMENT DATE
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Series A DREPRA $.56875 November 16, 1999 November 30, 1999
Series B Not Listed $.99875 December 17, 1999 December 31, 1999
Series D DREPRD $.46094 December 17, 1999 December 31, 1999
Series E DREPRE $.51563 December 17, 1999 December 31, 1999
Series F DREPRF $.50000 January 17, 2000 January 31, 2000
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Commenting on Duke-Weeks' third quarter performance, Thomas L.
Hefner, Chairman and Chief Executive Officer, stated,
"Our nearly 19 percent FFO per share growth for the third quarter of
1999 is particularly noteworthy considering the comparison to the same
quarter last year when we achieved record growth per share of 23
percent. Once again, Duke-Weeks has produced per share FFO growth far
in excess of the average for our industry. In fact, for the past two
years we have grown FFO per share by an average of more than 18 percent
per quarter, clearly evidencing our ability to perform quite well
during conditions of general real estate market equilibrium. We remain
pleased with the overall health of our markets and the continued strong
performance of our in-service portfolio and pipeline of new
developments. Our income from service operations was strong again this
quarter because our vertical integration gives us a unique ability to
serve a wider variety of customer needs. Presently, the Company is both
financially and operationally strong. Our merger integration has been
smooth, and we continue to focus on growing earnings per share while
minimizing our need for external capital. As the business cycle
continues to mature, we remain very confident about the way our Company
is positioned."
The end of the third quarter marks the sixth anniversary of the
Company's October 4, 1993 public offering. The following is a summary of
Duke-Weeks' performance over the past six years ending September 30, 1999.
- Total shareholder return of 15.0 percent on an annualized basis
compared to 6.1 percent for the NAREIT Equity Index.
- Record earnings performance for each of the 24 quarters in the
Company's six-year history. During this time, FFO per share
increased approximately 120 percent, dividends increased 73
percent, and the Company's share price increased 64 percent.
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- Over the past 16 quarters, Duke-Weeks is the only REIT to record
double-digit growth in FFO per share each quarter. Less than two
percent of all public companies have had such consistent earnings
growth.
- Approximately $1.7 billion of development completions at an
average stabilized return of 11.8 percent.
Property information at September 30, 1999 was as follows:
- The Company's 841 in-service properties totaling 88.3 million
square feet were 92.7 percent leased, increasing from 92.1 percent
leased on a proforma basis for the combined Duke and Weeks
portfolios at June 30, 1999.
- The Company had 12.5 million square feet under development that
were 50 percent pre-leased. The estimated cost of these properties
is $807.1 million on which Duke-Weeks expects to achieve an 11.3
percent stabilized return. At June 30, 1999, the proforma
Duke-Weeks development pipeline totaled 9.4 million square feet
and was 41 percent pre-leased.
- Including projects under development, the Company's total
portfolio at the end of the third quarter consisted of 919
properties totaling approximately 100.8 million square feet that
were 87.4 percent leased. At June 30, 1999, the proforma combined
Duke-Weeks portfolio totaled 96.3 million square feet and was 87.1
percent leased.
The Company also disclosed the following information for the third
quarter of 1999:
- The merger of Duke Realty Investments and Weeks Corporation closed
on July 2, 1999 making Duke-Weeks the largest mixed
office/industrial REIT in the United States.
- Duke-Weeks renewed 71 percent of leases up for renewal totaling
2.0 million square feet of renewals on which it attained an 11.4
percent growth in net effective rents.
- Same Property Performance (proforma for the merger) for the first
nine months of 1999 reflects a net operating income increase of
3.6 percent.
- The Company continues to accelerate its capital redeployment
strategy and through September 30, 1999 has completed $182.3
million of dispositions. In the third quarter,
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Duke-Weeks sold $84.2 million of properties at an average
capitalization rate of 9.2 percent.
- Duke-Weeks' interest and fixed-charge coverage ratios in the third
quarter were 4.6 and 2.8, respectively, and its debt to total
market capitalization ratio was 36 percent at September 30, 1999.
When used in this press release, the word "believes," "expects,"
"estimates" and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties
which could cause actual results to differ materially. In particular, among
the factors that could cause actual results to differ materially are
continued qualification as a real estate investment trust, general business
and economic conditions, competition, increases in real estate construction
costs, interest rates, accessibility of debt and equity capital markets and
other risks inherent in the real estate business including tenant defaults,
potential liability relating to environmental matters and liquidity of real
estate investments. Readers are advised to refer to Duke-Weeks' Form 8-K
Report as filed with the Securities and Exchange Commission on March 29, 1996
for additional information concerning these risks.
Duke-Weeks Realty Corporation is the largest mixed office/industrial
real estate company in the United States with more than $700 million in
annual revenue from approximately 5,000 tenants, approximately 1,400
employees, and a dominant presence in most of its 13 key geographic
platforms. The fully integrated Company owns interests in more than 100
million square feet of properties across the Midwest and the Sunbelt and has
the longest ongoing record (16 consecutive quarters) in the industry of
double-digit growth in funds from operations per share. Duke-Weeks also owns
or controls more than 4,300 acres of undeveloped land that can support
approximately 60 million square feet of future development.
A copy of the Company's third quarter 1999 supplemental information
fact book will be available after 8:00 p.m. EST today in the INVESTOR
INFORMATION section of the Company's web site at WWW.DUKEREIT.COM. These
materials are also available upon written request to:
Thomas K. Peck
Vice President, Investor Relations
Duke-Weeks Realty Corporation
8888 Keystone Crossing, Suite 1200
Indianapolis, IN 46240
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FINANCIAL HIGHLIGHTS
(in thousands, except per share data)
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THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
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OPERATING RESULTS 1999 1998 1999 1998
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Revenues $175,675 $97,632 $405,970 $272,309
Earnings from rental operations 60,072 30,888 136,080 92,062
Earnings from service operations 3,871 2,815 12,489 5,530
Net income - common shareholders 41,462 23,449 98,452 67,569
Funds from operations - Basic 68,772 39,421 162,256 111,084
Funds from operations - Diluted 82,796 44,665 192,152 126,314
PER SHARE:
Funds from operations - Basic $0.58 $0.48 $1.66 $1.40
Funds from operations - Diluted $0.57 $0.48 $1.62 $1.39
Net income - common shareholders - Basic $0.35 $0.29 $1.00 $0.85
Net income - common shareholders - Diluted $0.35 $0.29 $1.00 $0.84
Dividend payout ratio of funds from operations 68.4% 70.8% 69.1% 70.5%
Weighted average shares outstanding
Basic 118,820 81,594 97,966 79,461
Diluted 145,427 93,279 118,610 91,252
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SEPTEMBER 30 DECEMBER 31
Balance Sheet Data 1999 1998
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Net real estate investments $4,886,553 $2,556,753
Total assets 5,348,025 2,853,653
Total debt 1,964,857 1,007,317
Shareholders' equity 2,664,806 1,570,112
Common shares outstanding at end of period 125,180 86,053
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