DCT Reports 08 Second Quarter Results

DCT Industrial Trust Inc. (NYSE: DCT), a leading industrial real estate investment trust, today announced financial results for the quarter and six months ended June 30, 2008.

Funds from operations (FFO) attributable to common stockholders totaled $32.3 million for the second quarter of 2008 and $62.6 million for the six months ended June 30, 2008. FFO was $0.16 per diluted share for the second quarter of 2008 and $0.30 per diluted share for the six months ended June 30, 2008, compared to $0.19 per diluted share and $0.36 per diluted share reported for the same periods in 2007.

Net income attributable to common stockholders for the second quarter of 2008 was $15.5 million, or $0.09 per diluted share, compared to $7.8 million, or $0.05 per diluted share, reported for the second quarter of 2007. Net income for the six months ended June 30, 2008 was $15.9 million, or $0.09 per diluted share, compared to net income of $23.2 million, or $0.14 per diluted share, for the six months ended June 30, 2007.

Second quarter 2008 net income includes $16.7 million of gains and a $1.2 million impairment charge related to the contribution or sale of real estate. While second quarter FFO did not include any real estate gains, it was reduced by the impairment charge. Second quarter 2007 net income included $9.1 million of gains on the contribution or sale of real estate, of which $9.0 million was included in FFO.

"While our leasing activity and rental rate growth remain steady and in-line with expectations, our caution for the remainder of 2008 has increased," said Phil Hawkins, Chief Executive Officer of DCT Industrial Trust. "We've taken additional steps to further strengthen our balance sheet this year, including extending the maturity on $175 million of an unsecured note by five years and closing a $300 million senior unsecured term loan, both with very favorable terms, and disposing of $89 million of low-growth, non-strategic assets. We remain confident that our financial flexibility will benefit us through this softer economic environment, and we will continue to focus on executing our business plan to build long-term value."

Operating Portfolio

As of June 30, 2008, the Company owned 378 consolidated operating properties, or 53.0 million square feet, compared to 363 consolidated operating properties, or 52.5 million square feet, as of June 30, 2007. Net operating income was $46.5 million in the second quarter of 2008, compared to $45.7 million reported for the second quarter of 2007. DCT's consolidated operating portfolio occupancy declined to 91.8% as of June 30, 2008, compared to 92.8% as of June 30, 2007, primarily due to the bankruptcy of Wickes Furniture. Including an additional 13.0 million square feet of operating properties held in joint ventures, occupancy as of June 30, 2008 was 93.3%, compared to 93.6% a year ago.

Same store net operating income increased 1.3% on a cash basis and 0.3% on a GAAP basis in the second quarter of 2008, when compared to the same period last year. Occupancy of same store properties was 92.3% as of June 30, 2008, compared to 93.1% as of June 30, 2007.

Leasing activity increased with 2.5 million square feet of leases signed during the second quarter, up from 1.9 million square feet of leases signed in the first quarter of 2008. Tenant retention was 74.4% for the second quarter of 2008 and 73.3% year to date. Realized rent growth on signed leases for which there was a prior tenant averaged 12.7% on a GAAP basis and 5.4% on a cash basis in the second quarter of 2008.

Bad debt expense totaled $0.2 million in the second quarter of 2008, compared to $0.6 million last quarter and $0.6 million in the second quarter of 2007. -- DCT Industrial Trust Inc.

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