<PAGE>
AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON JUNE 28, 1995
- - -------------------------------------------------------------------------------
- - -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
ANNUAL REPORT PURSUANT TO SECTION 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
(Mark One)
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from ________________to________________
Commission file number: 1-9044
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
DUKE REALTY INVESTMENTS, INC.
8888 KEYSTONE CROSSING, SUITE 1200
INDIANAPOLIS, INDIANA 46240
<PAGE>
DUKE REALTY PROFIT SHARING
AND SALARY DEFERRAL PLAN
Financial Statements with
Supplemental Schedules
December 31, 1994 and 1993
(With Independent Auditors' Report Thereon)
<PAGE>
FINANCIAL STATEMENTS:
DUKE REALTY PROFIT SHARING
AND SALARY DEFERRAL PLAN
December 31, 1994 and 1993
Index
Page
----
Independent Auditors' Report 1
Financial Statements:
Statements of Net Assets Available for Plan Benefits 2
Statements of Changes in Net Assets Available for Plan Benefits 3
Notes to Financial Statements 4-8
Schedule
--------
Schedule of Assets Held for Investments Purposes 1
Schedule of Reportable Transactions 2
Exhibit
-------
EXHIBITS:
Consent of KPMG Peat Marwick LLP 1
<PAGE>
[KPMG PEAT MARWICK LLP LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
The Employee Benefits Committee
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN:
We have audited the accompanying statements of net assets available for plan
benefits of Duke Realty Profit Sharing and Salary Deferral Plan as of December
31, 1994 and 1993, and the related statements of changes in net assets available
for plan benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of Duke Realty
Profit Sharing and Salary Deferral Plan as of December 31, 1994 and 1993, and
the changes in net assets available for plan benefits for the years then ended,
in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets held
for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedules
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
KPMG Peat Marwick LLP
Indianapolis, Indiana
June 20, 1995
-1-
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Assets held by Trustee:
Investments, at market value:
Money market funds $1,411,464 $1,494,496
Mutual funds 3,837,336 3,781,164
Common stock 1,318,356 779,287
Insurance cash surrender value 77,064 72,412
Cash held for investment 208,949 -
Contributions receivable:
Participants 63,421 -
Employer 224,184 210,693
---------- ----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $7,140,774 $6,338,052
---------- ----------
---------- ----------
</TABLE>
See accompanying notes to financial statements.
-2-
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years Ended December 31, 1994 and 1993
<TABLE>
<CAPTION>
1994 1993
---- ----
<S> <C> <C>
Additions to net assets:
Contributions:
Participants' salary deferral $618,162 $519,588
Employer matching of salary deferral 223,892 204,816
Employer profit sharing 120,000 801,625
Participants' rollover 57,723 33,371
---------- ----------
1,019,777 1,559,400
---------- ----------
Investment income:
Net appreciation in fair value of
investments 97,796 302,395
Interest and dividends 254,520 10,047
Increase in insurance cash surrender value 20,916 21,697
---------- ----------
373,232 334,139
---------- ----------
Total additions 1,393,009 1,893,539
---------- ----------
Deductions from net assets:
Benefits paid to participants 556,615 528,835
Life insurance premium payments 24,377 26,571
Administrative expenses 9,295 7,359
---------- ----------
Total deductions 590,287 562,765
---------- ----------
Net increase 802,722 1,330,774
Net assets available for plan benefits:
Beginning of year 6,338,052 5,007,278
---------- ----------
End of year $7,140,774 $6,338,052
---------- ----------
---------- ----------
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Notes to Financial Statements
(1) DESCRIPTION OF PLAN
The following description of the Duke Realty Profit Sharing and Salary
Deferral Plan (the Plan) provides only general information. Participants
should refer to the Plan agreement for a more complete description of the
Plan's provisions.
GENERAL
The Plan is a defined contribution plan sponsored by Duke Realty Service
Limited Partnership and predecessor companies (the Employer) covering all
full-time employees who have completed one-half year of service and are
age 21 years or older as defined by the Plan. The Plan is subject to the
provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
CONTRIBUTIONS
Eligible participants may elect to defer a percentage of compensation to
be contributed to their Employee Deferral Account. Each year the Employee
Benefits Committee (the Committee) fixes the minimum and maximum percent
that may be contributed, not to exceed 15% of the participants'
compensation, from the Employer for each plan year subject to limitations
imposed by the Internal Revenue Service. The Employer matches participant
contributions annually up to a maximum of the greater of $500 or 2% of
total compensation. The Employer matching contribution is limited to the
participant's first $150,000 of compensation, and the contribution is
invested in the common stock of Duke Realty Investments, Inc., the parent
of the general partner of the Employer.
The Employer may also make discretionary contributions of a portion of
its profits to the Plan to be invested in the common stock of Duke Realty
Investments, Inc. The Employer made a special contribution of $681,625 in
1993 and a profit sharing contribution of $120,000 in 1994 and 1993.
PARTICIPANTS ACCOUNTS
Each participant's account is credited with the participant's
contribution, the Employer matching contribution, allocations of the
Employer's profit sharing contribution (when applicable), Plan earnings,
and forfeitures of terminated participants' non-vested accounts upon the
distribution of the vested portion of their accounts. The benefit to
which a participant is entitled is the benefit that can be provided from
the participant's account.
-4- Continued
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Notes to Financial Statements
LIFE INSURANCE
A participant may direct the Trustee to purchase and pay premiums on
insurance policies or contracts on the life of the participant.
VESTING
Participants are immediately vested in elective salary reduction
contributions, Employer matching contributions and the actual earnings
thereon. Vesting in both the profit sharing contribution and forfeiture
allocation and the earnings thereon is based upon the years of service of
the participant. A year of service means a plan year in which the
participant completes at least 1,000 hours of service. A participant
becomes 20% vested after three years of service and vests an additional
20% for each year of service thereafter and is 100% vested after seven
years of service.
BENEFITS
When a distribution is made upon termination of service or retirement, a
participant's vested account balance will be distributed in a lump-sum
payment within 60 days after completion of the Plan valuation date for
the period in which the event giving rise to the distribution occurred.
FORFEITURES
Participants who terminate employment and receive distribution of the
vested portion of their profit sharing account forfeit any non-vested
portion of their account. These forfeitures are allocated to other
participants in the same manner as the profit sharing contributions.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ADMINISTRATIVE EXPENSES
Trustee fees are paid by the Plan as incurred. Other expenses of the Plan
are paid directly by the Employer.
TAX STATUS
The Plan has received a favorable determination letter from the Internal
Revenue Service that the Plan qualifies under Section 401(a) of the
Internal Revenue Code and is exempt from federal income taxes under the
provision of Section 501(a).
-5- Continued
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Notes to Financial Statements
As a general rule, participant salary reduction contributions and
employer contributions are not taxable to a participant until distributed
from the Plan.
(3) PLAN TERMINATION
Although it has not expressed any intent to do so, the Employer has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of
Plan termination, participants will become 100% vested in their accounts.
(4) INVESTMENTS
In October 1994 the Employer transferred plan assets held by Northwestern
Mutual Life Insurance to Merrill Lynch. The Employee Benefit Committee of
Duke Realty Services Limited Partnership served as trustee during 1994,
and on January 1, 1995 Merrill Lynch Trust Company was established as the
new trustee. Plan participants may direct salary deferrals in any of the
following investments.
The Capital Fund, Inc. Class B Shares, Stock fund, Growth Fund Class B
Shares and Retirement Preservation Trust are held and managed by Merrill
Lynch pursuant to a management contract with the Plan. The Capital Fund,
Inc. Class B Shares invests primarily in common stocks and bonds. The
Stock fund invests solely in common stock of Duke Realty Investments,
Inc. The Growth Fund Class B Shares invests primarily in common stocks
and the Retirement Preservation Trust consists of money market
investments.
The Bond Fund of America and the Euro Pacific Growth Fund are held and
managed by the American Funds Group. The Bond Fund of America invests in
corporate and governmental bonds and the Euro Pacific Growth Fund invests
in U.S. and non-U.S. stocks.
The AIM Constellation Fund is held and managed by the AIM Family of Funds
and invests in common stocks of small to medium size companies.
Share of registered investment companies and Duke Realty Investments,
Inc. stock are valued at quoted market prices.
(5) CASH HELD FOR INVESTMENT
Cash held for investment primarily represents contributions received by
Merrill Lynch, but not yet invested in the respective funds. The cash
held for investment is maintained in an interest bearing account until it
is transferred into the appropriate directed fund.
-6- Continued
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Notes to Financial Statements
(6) NET ASSETS BY FUND
Net assets of the Plan by fund as of December 31, 1994 follows:
<TABLE>
<CAPTION>
Single AIM Capital Fund, Growth The Bond
Balanced Premium Constellation Inc. Class Fund Class Fund of
Fund Annuity Fund B Shares B Shares America
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments held by Trustee
Money market funds $ - - - - - -
Mutual funds - - 22,622 3,748,834 29,617 4,568
Common stock - - - - - -
Insurance cash surrender value - - - - - -
Cash held for investment - - 12,174 162,422 9,095 1,651
-----------------------------------------------------------------------------------------
- - 34,796 3,911,256 38,712 6,219
Contributions receivable - - 13,616 7,835 12,077 2,005
-----------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ - - 48,412 3,919,091 50,789 8,224
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Euro Pacific Insurance Money Retirement
Growth Stock Cash Surrender Market Preservation
Fund fund Value Fund Trust Total
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments held by Trustee
Money market funds $ - - - - 1,411,464 1,411,464
Mutual funds 31,695 - - - - 3,837,336
Common stock - 1,318,356 - - - 1,318,356
Insurance cash surrender value - - 77,064 - - 77,064
Cash held for investment 18,464 5,143 - - - 208,949
-----------------------------------------------------------------------------------------
50,159 1,323,499 77,064 - 1,411,464 6,853,169
Contributions receivable 16,838 230,283 - - 4,951 287,605
-----------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 66,997 1,553,782 77,064 - 1,416,415 7,140,774
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
Net assets of the Plan by fund as of December 31, 1993 follows:
<TABLE>
<CAPTION>
Single AIM Capital Fund, Growth The Bond
Balanced Premium Constellation Inc. Class Fund Class Fund of
Fund Annuity Fund B Shares B Shares America
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments held by Trustee
Money market funds $ - - - - - -
Mutual funds 3,764,518 16,646 - - - -
Common stock - - - - - -
Insurance cash surrender value - - - - - -
Cash held for investment - - - - - -
-----------------------------------------------------------------------------------------
3,764,518 16,646 - - - -
Contributions receivable 64,924 - - - - -
-----------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 3,829,442 16,646 - - - -
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
Euro Pacific Insurance Money Retirement
Growth Stock Cash Surrender Market Preservation
Fund fund Value Fund Trust Total
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investments held by Trustee
Money market funds $ - - - 1,494,496 - 1,494,496
Mutual funds - - - - - 3,781,164
Common stock - 779,287 - - - 779,287
Insurance cash surrender value - - 72,412 - - 72,412
Cash held for investment - - - - - -
-----------------------------------------------------------------------------------------
- 779,287 72,412 1,494,496 - 6,127,359
Contributions receivable - 120,000 - 25,769 - 210,693
-----------------------------------------------------------------------------------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS $ - 899,287 72,412 1,520,265 - 6,338,052
-----------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------
</TABLE>
-7- Continued
<PAGE>
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Notes to Financial Statements
(7) INVESTMENT FUND CHANGES
A summary of changes in plan assets by fund for the year ended December
31, 1994 follows:
<TABLE>
<CAPTION>
Single AIM Capital Fund, Growth
Balanced Premium Constellation Inc. Class Fund Class
Fund Annuity Fund B Shares B Shares
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Plan assets at December 31, 1993 $ 3,764,518 16,646 - - -
Additions:
Participants' salary deferrals 300,375 - 22,716 13,682 19,798
Employer matching 64,924 - - - -
Employer profit sharing - - - - -
Participants' rollover 27,388 - - 10,088 10,088
Insurance cash surrender value - - - - -
Interest and dividends - 1,044 - - 535
Net appreciation (depreciation)
in fair value of investments 6,128 - (94) (216,879) (804)
--------------------------------------------------------------------------------------------
Total additions 398,815 1,044 22,622 (193,109) 29,617
--------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants (73,058) - - (136,721) -
Administrative expenses (3,564) - - (312) -
Life insurance premiums - - - - -
--------------------------------------------------------------------------------------------
Total deductions (76,622) - - (137,033) -
Transfers between fund (4,086,711) (17,690) - 4,078,976 -
--------------------------------------------------------------------------------------------
Plan assets at December 31, 1994 $ - - 22,622 3,748,834 29,617
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
The Bond Euro Pacific Insurance Money
Fund of Growth Stock Cash Surrender Market
America Fund fund Value Fund
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Plan assets at December 31, 1993 - - 779,287 72,412 1,494,496
Additions:
Participants' salary deferrals 4,592 29,039 8,789 24,378 65,644
Employer matching - - 119,707 - 27,850
Employer profit sharing - - 120,000 - -
Participants' rollover - 3,411 - - -
Insurance cash surrender value - - - 20,916 -
Interest and dividends - - 72,584 - -
Net appreciation (depreciation)
in fair value of investments (24) (755) 267,481 - 42,742
--------------------------------------------------------------------------------------------
Total additions 4,568 31,695 588,561 45,294 136,236
--------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants - - (47,905) - (215,052)
Administrative expenses - - (1,587) - (3,285)
Life insurance premiums - - - (24,377) -
--------------------------------------------------------------------------------------------
Total deductions - - (49,492) (24,377) (218,337)
Transfers between fund - - - (16,265) (1,412,395)
--------------------------------------------------------------------------------------------
Plan assets at December 31, 1994 4,568 31,695 1,318,356 77,064 -
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
Retirement Cash held
Preservation for
Trust Investment Other Total
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Plan assets at December 31, 1993 - - 210,693 6,338,052
Additions:
Participants' salary deferrals 17,688 48,040 63,421 618,162
Employer matching - - 11,411 223,892
Employer profit sharing - - - 120,000
Participants' rollover 3,411 3,337 - 57,723
Insurance cash surrender value - - - 20,916
Interest and dividends 22,785 157,572 - 254,520
Net appreciation (depreciation)
in fair value of investments - - 1 97,796
--------------------------------------------------------------------------------------------
Total additions 43,884 208,949 74,833 1,393,009
--------------------------------------------------------------------------------------------
Deductions:
Benefits paid to participants (85,959) - 2,080 (556,615)
Administrative expenses (546) - (1) (9,295)
Life insurance premiums - - - (24,377)
--------------------------------------------------------------------------------------------
Total deductions (86,505) - 2,079 (590,287)
Transfers between fund 1,454,085 - - -
--------------------------------------------------------------------------------------------
Plan assets at December 31, 1994 1,411,464 208,949 287,605 7,140,774
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
</TABLE>
-8-
<PAGE>
Schedule 1
----------
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1994
<TABLE>
<CAPTION>
Identity of Issue Description of Investment Shares Cost Current Value
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
* Merrill Lynch Capital Fund, Inc. Class B Shares
Common stocks and bonds 147,942 $3,965,350 $3,748,834
* Merrill Lynch Growth Fund Class B Shares
Common stocks 1,798 29,740 29,617
* Merrill Lynch Retirement Preservation Trust
Money market instrument 1,411,464 1,411,464 1,411,464
* Merrill Lynch Duke Realty Investments, Inc.
Common stock 46,667 1,122,252 1,318,356
American Funds Group The Bond Fund of America
Corporate and governmental bonds 360 4,592 4,568
American Funds Group Euro Pacific Fund
U.S. and non-U.S. stocks 1,500 32,448 31,695
AIM Family of Funds AIM Constellation Fund
Common stock 1,316 22,715 22,622
Northwestern Mutual Life
Insurance Co. Insurance cash surrender value N/A 77,064 77,064
</TABLE>
<PAGE>
Schedule 2
----------
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Item 27d- Schedule of Reportable Transactions
Year Ended December 31, 1994
<TABLE>
<CAPTION>
Current
Value on
Description Purchase Selling Lease Expense Cost of Transaction Gain/
Identify of Issue of Asset Fund Price Price Rental Incurred Asset Date (Loss)
- - ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Northwestern Mutual
Life Ins. Co. Money Market Money Market $ - $1,428,972 - - $1,318,743 $1,428,972 $110,229
Instruments Fund
Northwestern Mutual
Life Ins. Co. Common Stocks Balance Fund - 4,078,976 - - 3,284,384 4,078,976 794,592
and Bonds
Merrill Lynch Trust Co. Common Stocks Capital Fund, 4,078,468 - - - 4,078,468 - -
and Bonds Inc. Class
B Shares
Merrill Lynch Trust Co. Money Market Retirement 1,428,972 - - - 1,428,972 - -
Instruments Preservation
Trust
</TABLE>
<PAGE>
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
DUKE REALTY PROFIT SHARING AND SALARY DEFERRAL PLAN
Date: June 28, 1995 /s/ Dennis D. Oklak
---------------------------------------
Dennis D. Oklak
Plan Administrator
<PAGE>
EXHIBIT 1
The Board of Directors
Duke Realty Investments, Inc.:
We consent to incorporation by reference in the registration statement (No.
33-55727) on Form S-8 of Duke Realty Investments, Inc. of our report dated
June 20, 1995, relating to the statements of net assets available for plan
benefits of Duke Realty Profit Sharing and Salary Deferral Plan as of December
31, 1994 and 1993, and the related statements of changes in net assets
available for plan benefits for each of the years then ended, and the related
supplemental schedules of assets held for investment purposes and reportable
transactions, which report appears in the December 31, 1994, annual report on
Form 11-K of Duke Realty Profit Sharing and Salary Deferral Plan.
KPMG Peat Marwick LLP
Indianapolis, Indiana
June 28, 1995
