NYSE:DRE

Stock Analysis Report

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Executive Summary

Duke Realty Corporation owns and operates approximately 156 million rentable square feet of industrial assets in 20 major logistics markets. More Details


Snowflake Analysis

Established dividend payer with mediocre balance sheet.


Similar Companies

Share Price & News

How has Duke Realty's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DRE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: DRE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.08%

DRE

0.09%

US REITs

2.8%

US Market


1 Year Return

9.3%

DRE

-8.7%

US REITs

20.7%

US Market

Return vs Industry: DRE exceeded the US REITs industry which returned -8.6% over the past year.

Return vs Market: DRE underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

DREIndustryMarket
7 Day0.08%0.09%2.8%
30 Day3.4%10.9%12.3%
90 Day-0.6%2.2%6.4%
1 Year12.1%9.3%-4.9%-8.7%23.4%20.7%
3 Year47.7%35.9%17.6%3.7%47.2%37.4%
5 Year120.5%85.5%47.3%17.6%94.1%72.7%

Long-Term Price Volatility Vs. Market

How volatile is Duke Realty's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Duke Realty undervalued compared to its fair value and its price relative to the market?

65.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DRE ($38.44) is trading above our estimate of fair value ($36.68)

Significantly Below Fair Value: DRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DRE is poor value based on its PE Ratio (65.6x) compared to the US REITs industry average (38.3x).

PE vs Market: DRE is poor value based on its PE Ratio (65.6x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: DRE is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: DRE is overvalued based on its PB Ratio (2.8x) compared to the US REITs industry average (1.6x).


Next Steps

Future Growth

How is Duke Realty forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRE's forecast earnings growth (9.9% per year) is above the savings rate (2.2%).

Earnings vs Market: DRE's earnings (9.9% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: DRE's earnings are forecast to grow, but not significantly.

Revenue vs Market: DRE's revenue (6.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: DRE's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DRE's Return on Equity is forecast to be low in 3 years time (4.7%).


Next Steps

Past Performance

How has Duke Realty performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DRE has high quality earnings.

Growing Profit Margin: DRE's current net profit margins (22.3%) are lower than last year (39.5%).


Past Earnings Growth Analysis

Earnings Trend: DRE's earnings have grown by 11.5% per year over the past 5 years.

Accelerating Growth: DRE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DRE had negative earnings growth (-46.4%) over the past year, making it difficult to compare to the REITs industry average (2%).


Return on Equity

High ROE: DRE's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Duke Realty's financial position?


Financial Position Analysis

Short Term Liabilities: DRE's short term assets ($218.4M) exceed its short term liabilities ($211.4M).

Long Term Liabilities: DRE's short term assets ($218.4M) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: DRE's debt to equity ratio (61.7%) is considered high.

Reducing Debt: DRE's debt to equity ratio has reduced from 104.1% to 61.7% over the past 5 years.

Debt Coverage: DRE's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: DRE's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Duke Realty current dividend yield, its reliability and sustainability?

2.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DRE's dividend (2.65%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: DRE's dividend (2.65%) is low compared to the top 25% of dividend payers in the US market (4.05%).


Stability and Growth of Payments

Stable Dividend: DRE's dividends per share have been stable in the past 10 years.

Growing Dividend: DRE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (69.5%), DRE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DRE's dividends in 3 years are forecast to be covered by earnings (57.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Jim Connor (61 yo)

4.83yrs

Tenure

US$6,693,904

Compensation

Mr. James B. Connor, known as Jim, has been the Chief Executive Officer of Duke Realty Corporation, the General Partner of Duke Realty L.P. since January 1, 2016 and has been its Chairman of the Board sinc...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD6.69M) is below average for companies of similar size in the US market ($USD10.83M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Connor
Chairman & CEO4.83yrsUS$6.69m0.050%
$ 7.2m
Mark Denien
Executive VP & CFO7.5yrsUS$2.92m0.0026%
$ 370.4k
Steven Schnur
Executive VP & COO1.17yrsUS$2.34m0.0034%
$ 498.3k
Nicholas Anthony
Executive VP & Chief Investment Officer7.42yrsUS$2.49m0.0067%
$ 967.5k
Ann Dee
Executive VP7.83yrsUS$2.12m0.015%
$ 2.2m
Mark Milnamow
Senior VP & Chief Accounting Officer1.75yrsno datano data
Paul Defonce
Senior Vice President of Information Technologyno datano datano data
Ronald Hubbard
Vice President of Investor relationsno datano datano data
Helen McCarthy
Manager of Communications & Public Relationsno datano datano data
Jenny Bean
Senior Vice President of Human Resources1.83yrsno datano data
Kevin Rogus
Senior Vice President of Leasing and Development14.83yrsUS$1.43mno data
David Hudson
Senior Vice President of Leasing & Development for Houstonno datano datano data

6.1yrs

Average Tenure

54yo

Average Age

Experienced Management: DRE's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Connor
Chairman & CEO4.83yrsUS$6.69m0.050%
$ 7.2m
Ngaire Cuneo
Independent Director25.83yrsUS$225.00k0.011%
$ 1.6m
Peter Scott
Independent Director9.08yrsUS$250.00k0.0049%
$ 716.2k
Michael Szymanczyk
Independent Director6.58yrsUS$246.88k0.010%
$ 1.4m
Lynn Thurber
Independent Director12.33yrsUS$226.00k0.032%
$ 4.7m
Charles Eitel
Independent Director21.83yrsUS$226.00kno data
David Stockert
Independent Lead Director1.83yrsUS$241.00k0.0096%
$ 1.4m
Warren Thompson
Independent Director1.83yrsUS$250.00k0.0012%
$ 168.5k
Melanie Sabelhaus
Independent Director8.58yrsUS$242.88k0.0084%
$ 1.2m
John Case
Independent Director2.83yrsUS$225.00k0.0031%
$ 444.5k
Norman Jenkins
Independent Director3.33yrsUS$225.00k0.00099%
$ 143.8k
Chris Sultemeier
Independent Director2.75yrsUS$225.00k0.0031%
$ 446.0k

5.1yrs

Average Tenure

65yo

Average Age

Experienced Board: DRE's board of directors are considered experienced (5.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Duke Realty Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Duke Realty Corporation
  • Ticker: DRE
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: US$14.527b
  • Market Cap: US$14.298b
  • Shares outstanding: 375.28m
  • Website: https://www.dukerealty.com

Number of Employees


Location

  • Duke Realty Corporation
  • 8711 River Crossing Boulevard
  • Indianapolis
  • Indiana
  • 46240
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRENYSE (New York Stock Exchange)YesCommon SharesUSUSDAug 1988
DURDB (Deutsche Boerse AG)YesCommon SharesDEEURAug 1988
0ID0LSE (London Stock Exchange)YesCommon SharesGBUSDAug 1988
DRE *BMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNAug 1988
D1RE34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REPR 1 COMBRBRLJan 2020

Biography

Duke Realty Corporation owns and operates approximately 156 million rentable square feet of industrial assets in 20 major logistics markets. Duke Realty Corporation is publicly traded on the NYSE under the...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:35
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.