NYSE:DRE

Stock Analysis Report

Executive Summary

Duke Realty Corporation owns and operates approximately 158 million rentable square feet of industrial assets in 20 major logistics markets.

Snowflake

Fundamentals

Second-rate 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


Market Performance


7 Day Return

3.4%

DRE

1.4%

US REITs

-0.6%

US Market


1 Year Return

16.1%

DRE

13.4%

US REITs

0.7%

US Market

DRE outperformed the REITs industry which returned 12.7% over the past year.

DRE outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

DREIndustryMarket
7 Day3.4%1.4%-0.6%
30 Day1.6%2.6%4.9%
90 Day4.8%4.2%1.7%
1 Year19.4%16.1%18.5%13.4%3.0%0.7%
3 Year36.2%21.2%26.7%10.4%44.8%35.4%
5 Year133.5%92.4%70.6%35.0%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

4%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Duke Realty's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Duke Realty's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Duke Realty is overvalued based on earnings compared to the US REITs industry average.

Duke Realty is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Duke Realty earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Duke Realty is overvalued based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Duke Realty expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Duke Realty's revenue is expected to grow by 5.9% yearly, however this is not considered high growth (20% yearly).

Duke Realty's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Duke Realty's revenue growth is positive but not above the United States of America market average.

Duke Realty's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Duke Realty's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Duke Realty is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Duke Realty performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Duke Realty's year on year earnings growth rate has been positive over the past 5 years.

Duke Realty's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Duke Realty's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.


Return on Equity

Duke Realty has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Duke Realty used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Duke Realty has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Duke Realty's financial position?


Financial Position Analysis

Duke Realty is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Duke Realty's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Duke Realty's level of debt (61%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (127.2% vs 61% today).

Debt is not well covered by operating cash flow (17.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 3.3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

2.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Duke Realty's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Duke Realty's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (675.7x coverage).


Next Steps

Management

What is the CEO of Duke Realty's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Jim Connor (60yo)

3.7yrs

Tenure

US$6,873,613

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

Jim's remuneration is lower than average for companies of similar size in United States of America.

Jim's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

The tenure for the Duke Realty management team is about average.


Board Age and Tenure

6.4yrs

Average Tenure

68.5yo

Average Age

The tenure for the Duke Realty board of directors is about average.


Insider Trading

Duke Realty individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$342,89022 Aug 19
Peter Harrington
EntityIndividual
Shares10,297
Max PriceUS$33.30
SellUS$254,55407 Aug 19
Nicholas Anthony
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares7,806
Max PriceUS$32.61
SellUS$154,45015 Mar 19
Melanie Sabelhaus
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$30.89
SellUS$545,80311 Mar 19
Ann Dee
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares18,334
Max PriceUS$29.77
SellUS$298,20007 Mar 19
Steven Schnur
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares10,000
Max PriceUS$29.82
SellUS$151,69221 Feb 19
Charles Eitel
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,075
Max PriceUS$29.89
SellUS$288,86905 Feb 19
Nicholas Anthony
EntityIndividual
Role
Chief Investment Officer
Executive VP & Chief Investment Officer
Shares9,937
Max PriceUS$29.07
SellUS$1,366,21305 Feb 19
Mark Denien
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares46,328
Max PriceUS$29.49
SellUS$69,95030 Oct 18
Melanie Sabelhaus
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$27.98

Ownership Breakdown


Management Team

  • Jim Connor (60yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$6.87m
  • Paul Defonce

    Senior Vice President of Information Technology

    • Tenure: 0yrs
  • Ron Hubbard

    Vice President of Investor relations

    • Tenure: 0yrs
  • Mark Denien (51yo)

    Executive VP & CFO

    • Tenure: 6.3yrs
    • Compensation: US$3.00m
  • Ann Dee (59yo)

    Executive VP

    • Tenure: 6.7yrs
    • Compensation: US$2.15m
  • Nick Anthony (54yo)

    Executive VP & Chief Investment Officer

    • Tenure: 0yrs
    • Compensation: US$2.41m
  • Helen McCarthy

    Manager of Communications & Public Relations

    • Tenure: 0yrs
  • Steve Schnur (46yo)

    Executive VP & COO

    • Tenure: 0yrs
    • Compensation: US$2.20m
  • Mark Milnamow

    Senior VP & Chief Accounting Officer

    • Tenure: 0.6yrs
  • Jenny Bean

    Senior Vice President of Human Resources

    • Tenure: 0.7yrs

Board Members

  • Ngaire Cuneo (68yo)

    Director

    • Tenure: 24.7yrs
    • Compensation: US$228.75k
  • Peter Scott (69yo)

    Director

    • Tenure: 7.9yrs
    • Compensation: US$250.00k
  • Mike Szymanczyk (70yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$245.00k
  • Lynn Thurber (72yo)

    Director

    • Tenure: 11.2yrs
    • Compensation: US$226.00k
  • Charlie Eitel (69yo)

    Director

    • Tenure: 20.7yrs
    • Compensation: US$226.00k
  • Dave Stockert (56yo)

    Lead Director

    • Tenure: 0.7yrs
    • Compensation: US$226.00k
  • Jim Connor (60yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$6.87m
  • Melanie Sabelhaus (70yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$233.50k
  • John Case (55yo)

    Director

    • Tenure: 1.7yrs
    • Compensation: US$250.00k
  • Norman Jenkins (56yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$225.00k

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$12.159b
  • Market Cap: US$12.054b
  • Shares outstanding: 364.59m
  • Website: https://www.dukerealty.com

Number of Employees


Location

  • Duke Realty Corporation
  • 600 East 96th Street
  • Suite 100
  • 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

Biography

Duke Realty Corporation owns and operates approximately 158 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 Analysis2019/09/22 23:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.