As filed with the Securities and Exchange Commission on November 10, 1997
- -----------------------------------------------------------------
UNITED STATES
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): November 10, 1997
DUKE REALTY INVESTMENTS, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Commission File Number: 1-9044
------
State or Other Jurisdiction of Incorporation I.R.S. Employer Identification No.
Indiana 35-1740409
- --------------------------------------- ---------------
Address of principal executive offices:
8888 Keystone Crossing, Suite 1200
----------------------------------
Indianapolis, Indiana 46240
---------------------------
Telephone: (317) 846-4700
--------------------------
NOT APPLICABLE
(Former name or former address changed since last report)
- -----------------------------------------------------------------
<PAGE>
ITEM 5. OTHER EVENTS
ACQUISITIONS:
The following acquisitions of properties were made by Duke Realty
Investments, Inc. (DRE) from unrelated parties in unrelated
transactions. None of these acquisitions involved a significant
amount of assets within the meaning of the instructions to Form 8-K.
DRE acquired these properties because DRE believes that industrial
and office property investments in the midwestern United States present
excellent long-term opportunities for consistent rental
increases, high occupancy levels and value appreciation.
THE GROUP A PROPERTIES CONSIST OF THE FOLLOWING PROPERTIES FOR
WHICH AN AUDITED COMBINED STATEMENT OF REVENUES AND CERTAIN
EXPENSES FOR THE YEAR ENDED DECEMBER 31, 1996 IS PRESENTED IN
THIS FORM 8-K:
DRE acquired a 50% interest through a joint venture in the
Central Park of Lisle office property on May 15, 1997 from an
insurance company.
DRE acquired the Executive Towers office properties on August
28, 1997 from a real estate company.
DRE acquired the Riverport office and industrial properties on
September 26, 1997 from a limited partnership.
THE GROUP B PROPERTIES CONSIST OF THE FOLLOWING PROPERTIES WHICH
ARE INCLUDED IN THE PRO FORMA CONSOLIDATED BALANCE SHEET AND PRO
FORMA CONSOLIDATED STATEMENTS OF OPERATIONS OF DRE PRESENTED IN
THIS FORM 8-K:
DRE acquired the NGIC and Pointe 70 office properties on April
18, 1997 from an individual developer.
DRE acquired the Dyment and Johnson Controls industrial
properties on April 30, 1997 from a corporation.
DRE acquired the 8555 Keystone office property on June 26, 1997
from a real estate corporation.
DRE acquired the Kentucky Drive industrial properties on July
18, 1997 from an insurance company.
DRE acquired the One Ashview office property on August 19, 1997
from a limited partnership.
DRE acquired the Remington industrial properties on August 28,
1997 from a real estate company.
DRE acquired the Oaktree office property on September 30, 1997
from a corporation.
DRE acquired the Solon industrial properties on October 22, 1997
from a limited partnership.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBIT
(a) Pro Forma Consolidated Financial Information:
Pro Forma Consolidated Balance Sheet as of June 30, 1997 (unaudited)
Pro Forma Consolidated Statement of Operations for the year ended
December 31, 1996 (unaudited)
Pro Forma Consolidated Statement of Operations for the six months
ended June 30, 1997 (unaudited)
Notes to Pro Forma Consolidated Financial Statements
(b) Financial Statements:
Independent Auditors' Report
Combined Statements of Revenues and Certain Expenses for the Group
A Properties for the year ended December 31, 1996 and the period
from January 1, 1997 through June 30, 1997 (unaudited)
Notes to Combined Statements of Revenues and Certain Expenses
(c) Exhibit:
Exhibit 23.1 - Independent Auditors' Consent
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Duke Realty Investments, Inc.
(Registrant)
Date: November 10, 1997 By: /s/ Dennis D. Oklak
---------------------
Dennis D. Oklak
Executive Vice President and
Chief Administrative Officer
<PAGE>
DUKE REALTY INVESTMENTS, INC.
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The following unaudited pro forma consolidated financial
statements of Duke Realty Investments, Inc. (DRE) reflect the
acquisition by DRE of the properties listed in this Form 8-K,
Item 5. The pro forma consolidated financial statements have been
prepared based upon certain pro forma adjustments to the
historical consolidated financial statements of DRE. Share and
per share amounts in the consolidated financial statements of DRE
have been restated to reflect the two-for-one split of DRE's
common stock payable on August 25, 1997 to common shareholders of
record on August 18, 1997.
The accompanying unaudited pro forma consolidated balance sheet
as of June 30, 1997 has been prepared as if the properties
acquired subsequent to June 30, 1997 had been acquired as of the
balance sheet date.
The accompanying unaudited pro forma consolidated statements of
operations for the year ended December 31, 1996 and the six
months ended June 30, 1997 have been prepared as if the property
acquisitions had occurred as of January 1, 1996. Interest expense
and dividends on preferred stock were adjusted to reflect the
cost of the pro forma line of credit borrowings and the preferred
stock issuance that would have been required for these
acquisitions.
The unaudited pro forma consolidated financial statements do not
purport to be indicative of the results which would actually have
been obtained had the transactions described above been completed
on the dates indicated or which may be obtained in the future.
The unaudited pro forma consolidated financial statements should
be read in conjunction with the combined statements of revenues
and certain expenses for the properties included herein and the
financial statements of DRE.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
JUNE 30, 1997
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
ASSETS HISTORICAL ADJUSTMENTS PRO FORMA
- ---------------- ---------- ----------- ---------
<S> <C> <C> <C> <C>
Real estate investments:
Rental property $1,299,177 $193,105 (a) $1,492,282
Construction in progress 77,808 - 77,808
Land held for development 82,780 - 82,780
--------- ------- ---------
1,459,765 193,105 1,652,870
Accumulated depreciation (96,491) - (96,491)
--------- ------- ---------
Net real estate investments 1,363,274 193,105 1,556,379
Cash 3,107 (2,000)(b) 1,107
Accounts receivable from tenants 3,008 - 3,008
Straight-line rent receivable 12,376 - 12,376
Receivables on construction contracts 10,839 - 10,839
Investments in unconsolidated companies 112,837 - 112,837
Deferred financing costs 7,562 - 7,562
Deferred leasing and other costs 30,502 - 30,502
Escrow deposits and other assets 7,374 - 7,374
--------- ------- ---------
$1,550,879 $191,105 $1,741,984
========= ======= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Indebtedness:
Secured debt $ 271,857 $ - $ 271,857
Unsecured notes 240,000 - 240,000
Unsecured line of credit 103,000 45,055 (b) 148,055
--------- ------- ---------
614,857 45,055 659,912
Construction payables and amounts
due subcontractors 35,065 - 35,065
Accounts payable 2,545 - 2,545
Accrued real estate taxes 15,034 - 15,034
Accrued interest 5,106 - 5,106
Other accrued expenses 7,029 - 7,029
Other liabilities 7,807 - 7,807
Tenant security deposits and
prepaid rents 9,348 - 9,348
--------- ------- ---------
Total liabilities 696,791 45,055 741,846
Minority interest 18,867 - 18,867
--------- ------- ---------
Shareholders' equity:
Preferred shares ($.01 par value),
5,000 shares authorized:
9.10% Series A preferred shares
and paid-in capital, 300 shares
issued and outstanding 72,288 - 72,288
7.99% Series B preferred shares
and paid-in capital, 300 shares
issued and outstanding - 146,050 (c) 146,050
Common shares and paid-in capital
($.01 par value); 150,000 authorized;
63,320 shares issued and outstanding 813,625 - 813,625
Distributions in excess of net income (50,692) - (50,692)
--------- ------- ---------
Total shareholders' equity 835,221 146,050 981,271
--------- ------- ---------
$1,550,879 $191,105 $1,741,984
========= ======= =========
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Year ended December 31, 1996
-------------------------------------------------
Historical
-----------------------
Acquisitions
Current Pro Forma DRE
DRE Report (d) Adjustments Pro Forma
-------- ------------ ----------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL OPERATIONS:
Revenues:
Rental income $156,392 $42,757 $(6,567) (e) $192,582
Equity in earnings
of unconsolidated
companies 5,768 - 2,234 (f) 8,002
------- ------ ------ -------
162,160 42,757 (4,333) 200,584
------- ------ ------ -------
Operating expenses:
Rental expenses 29,669 7,976 (995) (g) 36,650
Real estate taxes 14,244 4,291 (702) (h) 17,833
Interest expense 31,344 - 7,514 (i) 38,858
Depreciation and
amortization 32,571 - 5,062 (j) 37,633
------- ------ ------- -------
107,828 12,267 10,879 130,974
------- ------ ------- -------
Earnings from
rental operations 54,332 30,490 (15,212) 69,610
------- ------ ------- -------
SERVICE OPERATIONS:
Revenues:
Property management,
maintenance and
leasing fees 11,496 - - 11,496
Construction management
and development fees 6,895 - - 6,895
Other income 1,538 - - 1,538
------- ------ ------- -------
19,929 - - 19,929
------- ------ ------- -------
Operating expenses:
Payroll 9,176 - - 9,176
Maintenance 1,526 - - 1,526
Office and other 2,791 - - 2,791
------- ------ ------- -------
13,493 - - 13,493
------- ------ ------- -------
Earnings from
service operations 6,436 - - 6,436
------- ------ ------- -------
General and
administrative expense (4,719) - - (4,719)
------- ------ ------- -------
Operating income 56,049 30,490 (15,212) 71,327
OTHER INCOME (EXPENSE):
Interest income 1,194 - - 1,194
Earnings from property
sales 4,532 - - 4,532
Other expense (174) - - (174)
Minority interest in
earnings of unitholders (7,184) - (403) (k) (7,587)
Other minority interest
in earnings of
subsidiaries (986) - - (986)
------- ------ ------- -------
Net income 53,431 30,490 (15,615) 68,306
Dividends on preferred
shares (2,559) - (11,985) (l) (14,544)
------- ------ ------- -------
Net income available
for common shares $ 50,872 $30,490 $(27,600) $ 53,762
======= ====== ======= =======
Net income per common
share $ .91 $ .96
======= =======
Weighted average
number of common
shares outstanding 56,134 56,134
======= =======
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended June 30, 1997
------------------------------------------------
Historical
----------------------
Acquisitions
Current Pro Forma DRE
DRE Report (d) Adjustments Pro Forma
-------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C>
RENTAL OPERATIONS:
Revenues:
Rental income $ 98,860 $19,244 $(2,310) (e) $115,794
Equity in earnings of
unconsolidated companies 3,644 - 915 (f) 4,559
------- ------ ------- -------
102,504 19,244 (1,395) 120,353
------- ------ ------- -------
Operating expenses:
Rental expenses 18,022 3,706 (304) (g) 21,424
Real estate taxes 9,115 2,141 (294) (h) 10,962
Interest expense 17,951 - 3,106 (i) 21,057
Depreciation and
amortization 20,241 - 2,255 (j) 22,496
------- ------- ------ -------
65,329 5,847 4,763 75,939
------- ------- ------ -------
Earnings from
rental operations 37,175 13,397 (6,158) 44,414
------- ------ ------- -------
SERVICE OPERATIONS:
Revenues:
Property management,
maintenance and
leasing fees 5,855 - - 5,855
Construction management
and development fees 2,711 - - 2,711
Other income 502 - - 502
------- ------ ------- -------
9,068 - - 9,068
------- ------ ------- -------
Operating expenses:
Payroll 4,885 - - 4,885
Maintenance 916 - - 916
Office and other 1,093 - - 1,093
------- ------ ------- -------
6,894 - - 6,894
------- ------ ------- -------
Earnings from service
operations 2,174 - - 2,174
------- ------ ------- -------
General and administrative
expense (2,890) - - (2,890)
------- ------ ------- -------
Operating income 36,459 13,397 (6,158) 43,698
OTHER INCOME (EXPENSE):
Interest income 427 - - 427
Earnings from property
sales 382 - - 382
Other expense (419) - - (419)
Minority interest in
earnings of unitholders (3,330) - (124) (k) (3,454)
Other minority interest
in earnings of
subsidiaries (425) - - (425)
------- ------ ------- -------
Net income 33,094 13,397 (6,282) 40,209
Dividends on preferred
shares (3,412) - (5,993) (l) (9,405)
------- ------ ------- -------
Net income available for
common shares $29,682 $13,397 $(12,275) $ 30,804
====== ====== ======= =======
Net income per common
share $ .48 $ .49
====== =======
Weighted average number
of common shares
outstanding 62,400 62,400
====== =======
</TABLE>
See accompanying notes to pro forma consolidated financial statements.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(DOLLARS IN THOUSANDS)
(UNAUDITED)
(a) Represents cost of DRE's property acquisitions subsequent to
June 30, 1997 as follows:
<TABLE>
<CAPTION>
Property Acquisition Date
-------- ----------------
<S> <C>
Kentucky Drive July 18, 1997
One Ashview August 19, 1997
Remington August 28, 1997
Executive Towers August 29, 1997
Riverport September 26, 1997
Oak Tree September 30, 1997
Solon October 22, 1997
</TABLE>
(b) Reflects the use of cash on hand of $2.0 million and line of
credit borrowings of $45.1 million utilized to partially
fund acquisitions of properties subsequent to June 30, 1997.
(c) Represents net proceeds from DRE's $150 million issuance of
Series B Cumulative Step-Up Premium Rate Preferred Shares
which were issued in July 1997 utilized to partially fund
acquisitions of properties subsequent to June 30, 1997.
(d) Reflects historical revenues and certain expenses on
properties acquired in 1997 listed in this Form 8-K Item 5
for the year ended December 31, 1996 or for the period from
January 1, 1997 to the earlier of the respective dates of
acquisition or June 30, 1997. Historical revenues and
certain expenses exclude amounts which would not be
comparable to the proposed future operations of the
properties, such as interest expense, interest income,
management fees and depreciation. The following table
presents the historical financial information for the Group
A Properties and the Group B Properties included in the pro
forma statements of earnings:
<TABLE>
<CAPTION>
For the Year Ended December 31, 1996
------------------------------------
Real
Rental Rental Estate
Income Expense Taxes
------ ------- ------
<S> <C> <C> <C>
Group A Properties $29,805 $5,659 $2,835
Group B Properties 12,952 2,317 1,456
------ ----- -----
Totals $42,757 $7,976 $4,291
====== ===== =====
</TABLE>
<PAGE>
DUKE REALTY INVESTMENTS, INC.
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1997
--------------------------------------
Real
Rental Rental Estate
Income Expense Taxes
------ ------- ------
<S> <C> <C> <C>
For the period January 1, 1997
to the earlier of the date of
acquisition or June 30, 1997:
Group A Properties $12,678 $2,514 $1,413
Group B Properties 6,566 1,192 728
------ ----- -----
Totals $19,244 $3,706 $2,141
====== ===== =====
</TABLE>
(e) Reflects the following pro forma adjustments:
<TABLE>
<CAPTION>
For the year ended For the six months ended
December 31, 1996 June 30, 1997
------------------ ------------------------
<S> <C> <C>
Increase in straight-line
rental income $ 1,308 $ 723
Adjustment of rental
income to reflect the
acquisition of Central
Park of Lisle through
a joint venture in which
DRE owns a 50% interest (7,875) (3,033)
------ ------
$(6,567) $(2,310)
====== ======
</TABLE>
(f) Reflects the equity in earnings related to Central Park of
Lisle which was acquired through a joint venture in which
DRE owns a 50% interest.
(g) Reflects the following pro forma adjustments:
<TABLE>
<CAPTION>
For the year ended For the six months ended
December 31, 1996 June 30, 1997
------------------ ------------------------
<S> <C> <C>
Decrease in rental expenses
due to the acquisition of
Central Park of Lisle
through a joint venture $(1,368) $(477)
Increase in rental expenses
to reflect the management
fee cost of DRE 373 173
------- -----
$ (995) $(304)
======= =====
</TABLE>
(h) Decrease in real estate taxes due to the acquisition of
Central Park of Lisle through a joint venture.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
(DOLLARS IN THOUSANDS)
(UNAUDITED)
(i) Represents pro forma interest expense related to utilization
of line of credit borrowings that would have been required
if the property acquisitions had occurred at January 1,
1996:
<TABLE>
<CAPTION>
For the year ended For the six months ended
December 31, 1996 June 30, 1997
------------------ ------------------------
<S> <C> <C>
Pro forma line of credit
borrowings for properties
acquired subsequent to
June 30, 1997 $ 45,055 $ 45,055
Line of credit borrowings
required for 1997
acquisitions made prior
to June 30, 1997 67,309 67,309
------- -------
Total pro forma line of
credit borrowings $112,364 $112,364
Current interest rate 6.6875% 6.6875%
Proration factor 1.0 .50
------- -------
$ 7,514 $ 3,757
Interest expense recorded
on DRE's historical
financial statements
related to acquisitions
made prior to June 30, 1997 - (651)
------- -------
$ 7,514 $ 3,106
======= =======
</TABLE>
(j) Reflects pro forma depreciation expense adjustment resulting
from acquired properties based on the depreciable basis of
DRE's acquisition cost, assuming asset lives of 40 years.
(k) Reflects pro forma effect of minority interest in earnings of
unitholders.
(l) Represents the dividends on the 7.99% Series B Preferred
Shares assuming they were issued January 1, 1996.
<PAGE>
INDEPENDENT AUDITORS' REPORT
- ----------------------------
To the Directors
DUKE REALTY INVESTMENTS, INC.:
We have audited the accompanying combined statement of
revenues and certain expenses (the Combined Statement) of
the Group A Properties described in note 1 for the year
ended December 31, 1996. This Combined Statement is the
responsibility of management. Our responsibility is to
express an opinion on this Combined Statement based on
our audit.
We conducted our audit in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable
assurance about whether the Combined Statement is free of
material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the Combined Statement. An audit also
includes assessing the accounting principles used and
significant estimates made by management, as well as
evaluating the overall presentation of the Combined
Statement. We believe that our audit provides a
reasonable basis for our opinion.
The accompanying Combined Statement was prepared for the
purpose of complying with the rules and regulations of
the Securities and Exchange Commission and for inclusion
in Form 8-K to be filed by Duke Realty Investments, Inc.
as described in note 2. The presentation is not intended
to be a complete presentation of the combined revenues
and expenses of the Group A Properties.
In our opinion, the Combined Statement referred to above
presents fairly, in all material respects, the combined
revenues and certain expenses as described in note 2 of
the Group A Properties for the year ended December 31,
1996, in conformity with generally accepted accounting
principles.
KPMG Peat Marwick LLP
Indianapolis, Indiana
October 20, 1997
<PAGE>
DUKE REALTY INVESTMENTS, INC.
GROUP A PROPERTIES
COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES
YEAR ENDED DECEMBER 31, 1996 AND THE
PERIOD FROM JANUARY 1, 1997 THROUGH JUNE 30, 1997
(IN THOUSANDS)
<TABLE>
<CAPTION>
Period from
January 1, 1997
through June 30,
1996 1997 (unaudited)
-------- ----------------
<S> <C> <C>
Revenues:
Rental income $29,805 $12,678
------ ------
Certain expenses:
Housekeeping 1,283 612
Utilities 1,793 769
Repairs and maintenance 1,699 777
Other 884 356
------ ------
5,659 2,514
Real estate taxes 2,835 1,413
------ ------
8,494 3,927
------ ------
Revenues in excess of certain
expenses $21,311 $ 8,751
====== ======
</TABLE>
See accompanying notes to the combined statements of revenues
and certain expenses.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
GROUP A PROPERTIES
NOTES TO COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES
YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD FROM JANUARY 1, 1997
THROUGH JUNE 30, 1997 (UNAUDITED)
(1)OPERATING PROPERTIES
The Combined Statements of Revenues and Certain Expenses (the
Combined Statements) for the year ended December 31, 1996 and
the period from January 1, 1997 to the earlier of the
respective dates of acquisition or through June 30, 1997
relates to the operations of the following properties ("Group
A Properties") which have been acquired by Duke Realty
Investments, Inc. (DRE) from unaffiliated parties:
<TABLE>
<CAPTION>
Property Metropolitan Area Acquisition Date
-------------------- ----------------- ----------------
<S> <C> <C>
Central Park of Lisle Chicago May 15, 1997
Executive Towers Chicago August 28, 1997
Riverport St. Louis September 26, 1997
</TABLE>
(2)BASIS OF PRESENTATION
The accompanying Combined Statements have been prepared on
the accrual basis of accounting. The Combined Statements have
been prepared for the purpose of complying with the rules and
regulations of the Securities and Exchange Commission and for
inclusion in Form 8-K to be filed by DRE. The Combined
Statements are not intended to be a complete presentation of
combined revenues and expenses of the Group A Properties.
The Combined Statements exclude certain amounts which would
not be comparable to the proposed future operations of the
properties as follows:
(a) depreciation of building and tenant improvements;
(b) interest expense related to debt;
(c) interest income;
(d) management fees; and
(e) other income and expense items unique to the prior owners.
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Rental Operations
Rental income from leases with scheduled rental increases
during their terms is recognized for financial reporting
purposes on a straight-line basis.
<PAGE>
DUKE REALTY INVESTMENTS, INC.
GROUP A PROPERTIES
NOTES TO COMBINED STATEMENTS OF REVENUES AND CERTAIN EXPENSES (CONCLUDED)
YEAR ENDED DECEMBER 31, 1996 AND THE PERIOD FROM JANUARY 1, 1997
THROUGH JUNE 30, 1997 (UNAUDITED)
Use of Estimates
The preparation of the Combined Statements in conformity with
generally accepted accounting principles require management
to make estimates and assumptions that affect the amounts
reported in the Combined Statements and accompanying notes.
Actual results could differ from those estimates.
Unaudited Interim Combined Statement
The Combined Statement of Revenues and Certain Expenses for
the period from January 1, 1997 through June 30, 1997 is
unaudited. In the opinion of management, all adjustments,
consisting of normal recurring accruals, necessary for a fair
presentation of the Combined Statement for the interim period
have been included. The results of operations for the interim
period are not necessarily indicative of the results to be
expected for the full year for the Group A Properties.
(4) LEASING ACTIVITY
Future minimum rents due to the Group A Properties at
December 31, 1996 are scheduled as follows (in thousands):
<TABLE>
<CAPTION>
Year Amount
---- -----
<S> <C>
1997 $ 9,347
1998 23,762
1999 21,427
2000 18,796
2001 11,655
Thereafter 34,621
-------
$119,608
=======
</TABLE>
The 1997 future minimum rents due amount is presented from
the DRE acquisition date through December 31, 1997.
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
To the Directors
Duke Realty Investments, Inc.:
We consent to incorporation by reference in the registration
statements (No. 333-04695; No. 333-26845; No. 33-64567; No. 33-
64659; No. 333-24289; and No. 333-26833), on Form S-3 and No. 33-
55727 on Form S-8 of our report dated October 20, 1997 relating
to the Combined Statement of Revenues and Certain Expenses of the
Group A Properties for the year ended December 31, 1996, which
report appears in the current report on Form 8-K of Duke Realty
Investments, Inc. dated November 10, 1997.
KPMG Peat Marwick LLP
Indianapolis, Indiana
November 4, 1997
