DCT Industrial Trust Inc.® Reports Third Quarter and Year-to-Date 2012 Results

  DCT Industrial Trust Inc.® Reports Third Quarter and Year-to-Date 2012
  Results

 Consolidated Operating Occupancy Increased 150 Basis-Points to 91.8 Percent

 Same-Store NOI Growth for the Quarter of 4.3 Percent on a Cash Basis and 2.7
     Percent on a GAAP Basis; Average Same-Store Occupancy Increased 120
                 Basis-Points Year-over-year to 90.8 Percent

  Q3 Rental Rates Increased 3.8 Percent on a GAAP Basis and 0.9 Percent on a
                                  Cash Basis

Acquired Eight Buildings Totaling $41.3 Million and Sold 16 Buildings Totaling
                                $60.7 Million

                Funds from Operations of $0.10 per Share in Q3

                Guidance Increased to $0.40 - $0.42 per Share

Business Wire

DENVER -- November 01, 2012

DCT Industrial Trust Inc.^® (NYSE: DCT), a leading industrial real estate
company, today announced financial results for the quarter ending September
30, 2012.

“We continue to make great progress towards our strategic, operating and
financial goals,” said Phil Hawkins, President and Chief Executive Officer of
DCT Industrial. “Consolidated operating occupancy increased 150 basis-points;
we acquired eight buildings totaling $41.3 million and two development sites
which will support 1.6 million square feet; and we sold 16 buildings, totaling
1.6 million square feet, further upgrading the quality of our portfolio.”

Funds from Operations (“FFO”), as adjusted, attributable to common
stockholders and unitholders for the third quarter of 2012 totaled $28.3
million, or $0.10 per diluted share, compared with $26.5 million, or $0.10 per
diluted share, for the third quarter of 2011. These results exclude $0.2
million and $0.3 million of acquisition costs for the quarters ending
September 30, 2012 and 2011, respectively.

FFO, as adjusted, attributable to common stockholders and unitholders for the
nine months ending September 30, 2012 totaled $85.1 million, or $0.31 per
diluted share, compared with $76.7 million, or $0.29 per diluted share, for
the first nine months of 2011. These results exclude $1.0 million and $1.4
million of acquisition costs for the nine months ending September 30, 2012 and
2011, respectively.

Net income attributable to common stockholders for the third quarter of 2012
was $7.5 million, or $0.03 per diluted share, compared with a net loss
attributable to common stockholders of $8.1 million, or $0.03 per diluted
share, reported for the third quarter of 2011. Net loss attributable to common
stockholders for the nine months ending September 30, 2012 was $14.2 million,
or $0.06 per diluted share, compared with a net loss of $25.1 million, or
$0.11 per diluted share, for the nine months ending September 30, 2011.

Property Results and Leasing Activity

As of September 30, 2012, DCT Industrial owned 388 consolidated operating
properties, totaling 58.0 million square feet with occupancy of 91.8 percent
up from 90.3 percent as of June 30, 2012. Including development and
redevelopment, total consolidated occupancy was 91.0 percent as of September
30, 2012, up from 90.2 percent as of June 30, 2012. In addition, 0.7 million
square feet, or 1.2 percent of DCT Industrial’s total consolidated portfolio,
was leased but not yet occupied.

Net operating income (“NOI”) was $48.1 million in the third quarter of 2012,
compared with $43.8 million in the third quarter of 2011. In the third quarter
of 2012, same-store NOI, excluding revenue from lease terminations, increased
4.3 percent on a cash basis and 2.7 percent on a GAAP basis, when compared to
the same period of 2011. Same-store occupancy averaged 90.8 percent in the
third quarter of 2012, an increase of 120 basis-points over the third quarter
of 2011. Same-store occupancy ended at 91.4 percent as of September 30, 2012.

In the third quarter of 2012, the Company signed leases totaling 3.0 million
square feet. Rental rates on signed leases increased 3.8 percent on a GAAP
basis and 0.9 percent on a cash basis compared to prior leases. Over the
previous four quarters, rental rates on signed leases increased 2.5 percent on
a GAAP basis and decreased 5.3 percent on a cash basis. The Company’s tenant
retention rate was 70.2 percent in the third quarter of 2012 and 72.8 percent
year-to-date.

Investment Activity

Acquisitions

Since June 30, 2012, DCT Industrial has acquired eight buildings at a total
cost of $41.3 million – two in the third quarter of 2012 and six in October.
The buildings, located in Chicago, Seattle and Southern California, total 0.6
million square feet. The Company expects a year-one weighted-average cash
yield of 5.4 percent and a weighted-average projected stabilized cash yield of
6.3 percent on these assets. Year-to-date, the Company has acquired 17
buildings, totaling 2.1 million square feet for a total of $117.2 million. The
Company expects a year-one weighted-average cash yield of 5.7 percent and a
weighted-average projected stabilized cash yield of 6.9 percent.

The details of the acquisitions are as follows:

In August, in the Algona submarket of Seattle, DCT Industrial acquired a Class
A, 109,000 square foot distribution building through an off-market,
sale-leaseback. The facility is well-located with easy access to Interstate 5,
Highway 18 and Highway 16. The building is 100 percent occupied by a single
tenant. The Company anticipates a year-one cash yield of 6.1 percent.

In October, DCT Industrial acquired a 105,000 square foot light industrial
building located in the O’Hare International Airport submarket of Chicago. The
building is situated in the heart of the submarket, offering excellent access
to major interstates and O’Hare International Airport. Acquired through an
off-market transaction, the multi-tenant facility is not occupied. Building
renovations are currently underway and are expected to be complete in the
second quarter of 2013. The Company anticipates a stabilized cash yield of 8.2
percent.

Also in October, in the Sumner submarket of Seattle, DCT Industrial acquired a
26,000 square foot light industrial building. The Sumner submarket is a
highly-desirable location with consistently low vacancy rates. Acquired
through an off-market transaction, the unoccupied building was built in 2007.
Currently the interior of the building is undeveloped. The Company plans to
commence construction on the building’s interior in the fourth quarter of
2012, with expected completion in the first quarter of 2013. The Company
anticipates a stabilized cash yield of 6.8 percent.

Additionally in October, in Los Angeles, DCT Industrial acquired a four
building industrial business park totaling 211,000 square feet. The
multi-tenant business park is well-located in the San Gabriel Valley
submarket, which boasts one of the lowest vacancy rates in Southern
California. The business park is 100 percent occupied. The Company anticipates
a year-one cash yield of 6.2 percent.

The above acquisitions are in addition to the 180,000 square foot Southern
California acquisition that was previously announced. The Class A,
multi-tenant, rail served distribution asset was purchased in July and is
located in the Inland Empire West submarket.

The table below represents a summary of the acquisitions in the third quarter
and October 2012:

Market                      Submarket      Square Feet  Occupancy  Closed
Southern California         Inland Empire  180,000      100.0%     July-12
                             West
Seattle, WA                  Algona          109,000       100.0%      Aug-12
Chicago, IL                  O’Hare          105,000       0.0%        Oct-12
Seattle, WA                  Sumner          26,000        0.0%        Oct-12
Southern California (4      San Gabriel    211,000      100.0%     Oct-12
buildings)                   Valley
Total / Weighted Average                     631,000       79.2%
                                                                       

Additionally, as previously announced, the Company is under contract to
purchase a four asset portfolio totaling 563,000 square feet. The Class A,
state-of-the-art air freight buildings are ideally located with three
facilities in the Los Angeles International Airport submarket and one in the
Chicago O’Hare International Airport submarket. The portfolio is currently
99.6 percent occupied by eight tenants. The transaction is expected to close
in November 2012.

Development

In September, DCT Industrial acquired a 27.8 acre land parcel in the Inland
Empire West submarket of Southern California, named Slover Logistics Center
II. The parcel is located adjacent to the site for DCT Industrial’s Slover
Logistics Center I, which is 100 percent pre-leased. Situated at the I-10
Freeway – a major distribution corridor from the ports of Los Angeles and Long
Beach, the site was acquired through an off-market transaction from multiple
sellers and is currently being entitled to develop a 601,000 square foot,
Class A, cross-dock, Leed-certified distribution facility. Once completed,
Slover Logistics Center I and II will create an industrial campus totaling
over 1.2 million square feet.

In October, DCT Industrial acquired a 46.3 acre land parcel in the Sumner
submarket of Seattle, named DCT Sumner Corporate Center. The parcel is located
with direct access to Highway 167 – a main transportation corridor through the
Kent Valley. The site was acquired through an off-market transaction and the
Company plans to develop two, Class A, cross-dock distribution facilities
totaling over 1.0 million square feet. The first phase of the project, a
614,000 square foot building is currently being entitled with construction
expected to start later in 2013.

Additionally in October, the Company commenced construction on the expansion
of a bulk distribution building located in Nashville. This expansion will add
225,000 square feet to the already existing 325,000 square foot facility. In
connection with the expansion, the existing tenant executed a lease for the
entire facility.

The above developments are in addition to the 267,000 square foot Northwest
Houston development, Northwest 8 Distribution Center, which was previously
announced.

Dispositions

Since the end of the second quarter, the Company sold assets totaling 1.6
million square feet located in Dallas, Houston, Northern Kentucky and Northern
New Jersey. The dispositions generated gross proceeds of $60.7 million^1 with
a projected year-one weighted-average cash yield of 5.5 percent. Year-to-date
gross proceeds from dispositions total $89.2 million^1 with a projected
year-one weighted-average cash yield of 6.0 percent.

The table below represents a summary of the dispositions closed in the third
quarter:

Market                  Submarket          Square Feet  Occupancy  Closed
Northern Kentucky^2     Florence           352,000      100.0%     Aug-12
Houston, TX (13          Northwest &         1,005,000     98.1%       Aug-12
buildings)               Southwest
Northern New Jersey      Somerset            138,000       0.0%        Aug-12
Dallas, TX              Dallas Fort Worth  85,000       0.0%       Sept-12
                         Airport
Total / Weighted                            1,580,000     84.7%
Average

^1  Includes DCT Industrial’s proportionate share of gross proceeds for
     property sold by an unconsolidated joint venture.
^2   Unconsolidated property.
     

Successful Equity Offering

InSeptember, DCT Industrial issued approximately 19.0 million shares in a
public offering of common stock raising net proceeds of approximately$112.6
million before offering expenses. The Company intends to use the net proceeds
received from this offering for future acquisitions, development activities,
repayment of amounts outstanding under its senior unsecured revolving credit
facility, general corporate purposes, or a combination of the foregoing.

Dividend

DCT Industrial’s Board of Directors has declared a $0.07 per share quarterly
cash dividend, payable on January 10, 2013 to stockholders of record as of
December 28, 2012.

Guidance

The Company increased and narrowed 2012 FFO guidance, as adjusted, to $0.40 to
$0.42 per diluted share, up from $0.39 to $0.42. Additionally, net loss
attributable to common stockholders and unitholders is expected to be between
$(0.09) and $(0.07) per diluted share.

Initial guidance for DCT Industrial’s 2013 FFO will be provided in conjunction
with its fourth quarter 2012 earnings press release.

The Company’s guidance excludes future real estate gains and losses,
impairments and acquisition costs.

Conference Call Information

DCT Industrial will host a conference call to discuss third quarter 2012 on
Friday, November 2, 2012 at 11:00 a.m. Eastern Time. Stockholders and
interested parties may listen to a live broadcast of the conference call by
dialing (877) 317-6789 or (412) 317-6789. A telephone replay will be available
until 9 a.m. Eastern Time, Friday, November 16, 2012 and can be accessed by
dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 10019190. A
live webcast of the conference call will be available in the Investors section
of the DCT Industrial website at www.dctindustrial.com. A webcast replay will
also be available shortly following the call until November 2, 2013.

Supplemental information is available in the Investors section of the
Company’s website at www.dctindustrial.com or by e-mail request at
investorrelations@dctindustrial.com. Interested parties may also obtain
supplemental information from the SEC’s website at www.sec.gov.

About DCT Industrial Trust Inc.®

DCT Industrial Trust Inc. is a leading industrial real estate company
specializing in the acquisition, development, leasing and management of bulk
distribution and light industrial properties in high-volume distribution
markets in the U.S. and Mexico. As of September 30, 2012, the Company owned
interests in approximately 75.2 million square feet of properties leased to
approximately 840 customers, including 16.7 million square feet operated on
behalf of five institutional capital management partners. Additional
information is available at www.dctindustrial.com.


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share information)

                                                September 30,  December 31,
                                                 2012            2011
ASSETS                                           (unaudited)
Land                                             $ 683,051       $ 647,552
Buildings and improvements                         2,402,239       2,393,346
Intangible lease assets                            74,355          84,779
Construction in progress                          42,706        35,386    
Total investment in properties                     3,202,351       3,161,063
Less accumulated depreciation and amortization    (613,418  )    (589,314  )
Net investment in properties                       2,588,933       2,571,749
Investments in and advances to unconsolidated     147,643       139,278   
joint ventures
Net investment in real estate                      2,736,576       2,711,027
Cash and cash equivalents                          37,591          12,834
Notes receivable                                   231             1,053
Deferred loan costs, net                           7,006           8,567
Straight-line rent and other receivables, net
of allowance for doubtful accounts of $1,319       48,205          42,349
and $1,256, respectively
Other assets, net                                 25,647        17,468    
Total assets                                     $ 2,855,256    $ 2,793,298 
                                                                   
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses            $ 51,713        $ 45,785
Distributions payable                              20,464          19,057
Tenant prepaids and security deposits              19,872          22,864
Other liabilities                                  7,853           29,797
Intangible lease liability, net                    18,843          18,897
Line of credit                                     -               -
Senior unsecured notes                             1,025,000       935,000
Mortgage notes                                    275,216       317,783   
Total liabilities                                 1,418,961     1,389,183 
                                                                   
Equity:
Preferred stock, $0.01 par value, 50,000,000       -               -
shares authorized, none outstanding
Shares-in-trust, $0.01 par value, 100,000,000      -               -
shares authorized, none outstanding
Common stock, $0.01 par value, 350,000,000
shares authorized 268,683,134 and 245,943,100      2,687           2,459
shares issued and outstanding as of September
30, 2012 and December 31, 2011, respectively
Additional paid-in capital                         2,158,817       2,018,075
Distributions in excess of earnings                (851,154  )     (783,229  )
Accumulated other comprehensive loss              (34,791   )    (29,336   )
Total stockholders’ equity                         1,275,559       1,207,969
Noncontrolling interests                          160,736       196,146   
Total equity                                      1,436,295     1,404,115 
Total liabilities and equity                     $ 2,855,256    $ 2,793,298 
                                                                             


DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited, in thousands, except per share information)

                        Three Months Ended         Nine Months Ended
                         September 30,               September 30,
                         2012         2011          2012         2011
REVENUES:
Rental revenues          $ 67,327      $ 61,009      $ 194,774     $ 177,378
Institutional capital
management and other      937         1,004       3,143       3,153   
fees
Total revenues            68,264      62,013      197,917     180,531 
                                                                     
OPERATING EXPENSES:
Rental expenses            9,151         7,977         24,714        24,242
Real estate taxes          10,093        9,235         29,309        26,462
Real estate related
depreciation and           30,862        30,495        92,112        88,181
amortization
General and                6,838         6,346         19,136        20,465
administrative
Casualty gains            -           -           (141    )    -       
Total operating           56,944      54,053      165,130     159,350 
expenses
Operating income           11,320        7,960         32,787        21,181
                                                                     
OTHER INCOME AND
EXPENSE:
Equity in earnings
(loss) of                  1,208         (967    )     784           (3,450  )
unconsolidated joint
ventures, net
Impairment losses on
investments in             -             -             -             (1,934  )
unconsolidated joint
ventures
Interest expense           (17,299 )     (16,515 )     (51,769 )     (46,539 )
Interest and other         194           (356    )     354           (257    )
income (expense)
Income tax benefit
(expense) and other       (68     )    56          (623    )    (105    )
taxes
Loss from continuing       (4,645  )     (9,822  )     (18,467 )     (31,104 )
operations
Income from
discontinued              12,906      731         2,357       2,632   
operations
Consolidated net
income (loss) of DCT       8,261         (9,091  )     (16,110 )     (28,472 )
Industrial Trust Inc.
Net (income) loss
attributable to           (713    )    1,015       1,870       3,385   
noncontrolling
interests
Net income (loss)
attributable to common    7,548       (8,076  )    (14,240 )    (25,087 )
stockholders
Distributed and
undistributed earnings
allocated to              (134    )    (103    )    (400    )    (337    )
participating
securities
Adjusted net income
(loss) attributable to   $ 7,414      $ (8,179  )   $ (14,640 )   $ (25,424 )
common stockholders
                                                                     
EARNINGS PER COMMON
SHARE – BASIC AND
DILUTED:
Loss from continuing     $ (0.02   )   $ (0.03   )   $ (0.07   )   $ (0.12   )
operations
Income from
discontinued              0.05        0.00        0.01        0.01    
operations
Net income (loss)
attributable to common   $ 0.03       $ (0.03   )   $ (0.06   )   $ (0.11   )
stockholders
                                                                     
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic and diluted         253,657     245,805     249,381     241,548 
                                                                             


Reconciliation of Net Income (Loss) Attributable to Common Stockholders to
Funds from Operations^(1)
(unaudited, in thousands, except per share and unit data)

                        Three Months Ended         Nine Months Ended
                         September 30,               September 30,
                         2012         2011          2012         2011
Net income (loss)
attributable to common   $ 7,548       $ (8,076  )   $ (14,240 )   $ (25,087 )
stockholders
Adjustments:
Real estate related
depreciation and           30,934        33,398        94,676        96,839
amortization
Equity in (earnings)
loss of unconsolidated     (1,208  )     967           (784    )     3,450
joint ventures, net
Equity in FFO of
unconsolidated joint       2,590         1,083         7,883         2,119
ventures
Impairment losses on
depreciable real           -             -             11,422        1,934
estate
Gain on dispositions
of real estate             (12,227 )     -             (12,348 )     -
interests
Noncontrolling
interest in the above      (1,804  )     (3,655  )     (9,921  )     (10,852 )
adjustments
FFO attributable to       2,276       2,413       7,377       6,936   
unitholders
FFO basic and diluted     28,109      26,130      84,065      75,339  
FFO attributable to
common stockholders
and unitholders^(1):
Adjustments:
Acquisition costs^(2)     192         346         987         1,409   
FFO, as adjusted,
attributable to common
stockholders and         $ 28,301     $ 26,476     $ 85,052     $ 76,748  
unitholders – basic
and diluted
                                                                     
FFO per common share
and unit — basic and     $ 0.10       $ 0.10       $ 0.31       $ 0.28    
diluted
                                                                     
FFO, as adjusted, per
common share and unit    $ 0.10       $ 0.10       $ 0.31       $ 0.29    
— basic and diluted
                                                                     
FFO weighted average
common shares and
units outstanding:
                                                                     
Common shares for
earnings per share -       253,657       245,805       249,381       241,548
basic
Participating              1,999         1,555         1,862         1,623
securities
Units                     22,335      25,011      24,003      25,260  
FFO weighted average
common shares,
participating              277,991       272,371       275,246       268,431
securities and units
outstanding – basic
Dilutive common stock     663         429         618         468     
equivalents
FFO weighted average
common shares,
participating             278,654     272,800     275,864     268,899 
securities and units
outstanding – diluted
                                                                     

^(1)  Funds from Operations, FFO, as defined by the National Association of
       Real Estate Investment Trusts (NAREIT).
       
^(2)   Excluding amounts attributable to noncontrolling interests.
       


Guidance
The Company is providing the        
following guidance:
                                     Range for the Full-Year
                                     2012
Guidance:                            Low                    High
Earnings per common share -          $    (0.09    )        $    (0.07    )
diluted
Impairments and acquisition               0.01                    0.01
cost
Real estate related
depreciation and                         0.48                 0.48     
amortization^(1)
FFO, as adjusted, per common         $    0.40             $    0.42     
share and unit-diluted^(2)
                                                                  
(1) Includes pro rata share of real estate depreciation and amortization from
unconsolidated joint ventures.
(2) The Company’s FFO guidance excludes future real estate gains and losses
and acquisition costs.



The following table shows the calculation of our Fixed Charge Coverage for the
three and nine months ended September 30, 2012 and 2011 (in thousands):

                         Three Months Ended        Nine Months Ended
                          September 30,              September 30,
CALCULATION OF ADJUSTED   2012         2011         2012         2011
EBITDA^(1):
Net income (loss)
attributable to common    $ 7,548       $ (8,076 )   $ (14,240 )   $ (25,087 )
stockholders
Interest expense            17,299        16,628       51,898        46,907
Proportionate share of
interest expense from       765           746          2,366         2,355
unconsolidated joint
ventures
Real estate related
depreciation and            30,934        33,398       94,676        96,839
amortization
Proportionate share of
real estate related
depreciation and            1,708         1,785        5,773         4,787
amortization from
unconsolidated joint
ventures
Income tax (benefit)        68            (56    )     623           105
expense and other taxes
Stock-based
compensation                1,063         1,092        3,078         3,757
amortization
Noncontrolling              713           (1,015 )     (1,870  )     (3,385  )
interests
Non-FFO gains on
dispositions of real        (12,227 )     -            (12,348 )     -
estate interests
Impairment losses          -           -          11,422      1,934   
Adjusted EBITDA           $ 47,871     $ 44,502    $ 141,378    $ 128,212 
                                                                   
CALCULATION OF FIXED
CHARGES
Interest expense          $ 17,299      $ 16,628     $ 51,898      $ 46,907
Capitalized interest        1,113         461          2,583         2,133
Amortization of loan
costs and debt              (317    )     (257   )     (809    )     (738    )
premium/discount
Proportionate share of
interest expense from      765         746        2,366       2,355   
unconsolidated joint
ventures
Total fixed charges       $ 18,860     $ 17,578    $ 56,038     $ 50,657  
                                                                   
Fixed charge coverage      2.5         2.5        2.5         2.5     
                                                                             

^(1) Includes amounts related to discontinued operations.


The following table is a reconciliation of our reported “Loss from continuing
operations” to our net operating income for the three and nine months ended
September 30, 2012 and 2011 (in thousands):

                  Three Months Ended               Nine Months Ended
                   September 30,                     September 30,
                   2012            2011             2012         2011
Loss from
continuing         $  (4,645  )     $  (9,822  )     $ (18,467 )   $ (31,104 )
operations
Income tax
expense               68               (56     )       623           105
(benefit) and
other taxes
Interest and
other (income)        (194    )        356             (354    )     257
expense
Interest              17,299           16,515          51,769        46,539
expense
Equity in
(earnings) loss
of                    (1,208  )        967             (784    )     3,450
unconsolidated
joint ventures,
net
General and           6,838            6,346           19,136        20,465
administrative
Real estate
related
depreciation          30,862           30,495          92,112        88,181
and
amortization
Impairment
losses on
investments in        -                -               -             1,934
unconsolidated
joint ventures
Casualty gains        -                -               (141    )     -
Institutional
capital              (937    )       (1,004  )      (3,143  )    (3,153  )
management and
other fees
Total GAAP net
operating             48,083           43,797          140,751       126,674
income
Less net
operating
(income) loss -      (4,038  )       (845    )      (15,175 )    (4,015  )
non-same store
properties
Same store GAAP
net operating         44,045           42,952          125,576       122,659
income
Less revenue
from lease           (186    )       (246    )      (369    )    (429    )
terminations
Same store GAAP
net operating
income,
excluding             43,859           42,706          125,207       122,230
revenue from
lease
terminations
Less
straight-line
rents, net of         (1,059  )        (1,657  )       (2,449  )     (5,828  )
related bad
debt expense
Less
amortization of      (91     )       (102    )      (358    )    (378    )
above/(below)
market rents
Same store cash
net operating
income,
excluding          $  42,709       $  40,947       $ 122,400    $ 116,024 
revenue from
lease
terminations
                                                                             

Financial Measures

Net operating income (“NOI”) is defined as rental revenues, including expense
reimbursements, less rental expenses and real estate taxes, which excludes
institutional capital management fees, depreciation, amortization, casualty
gains, impairment, general and administrative expenses, equity in (earnings)
loss of unconsolidated joint ventures, interest expense, interest and other
income and income tax expense and other taxes. We consider NOI to be an
appropriate supplemental performance measure because it reflects the operating
performance of our properties and excludes certain items that are not
considered to be controllable in connection with the management of the
property such as depreciation, amortization, impairment, general and
administrative expenses, interest income and interest expense. Additionally,
lease termination revenue is excluded as it is not considered to be indicative
of recurring operating income. However those measures should not be viewed as
alternative measures of our financial performance since they exclude expenses
which could materially impact our results of operations. Further, our NOI may
not be comparable to that of other real estate companies, as they may use
different methodologies for calculating NOI, same store NOI (excluding revenue
from lease terminations), and cash basis same store NOI (excluding revenue
from lease terminations). Therefore, we believe net income (loss) attributable
to common stockholders, as defined by GAAP, to be the most appropriate measure
to evaluate our overall financial performance.

DCT Industrial believes that net income (loss) attributable to common
stockholders, as defined by GAAP, is the most appropriate earnings measure.
However, DCT Industrial considers Funds from Operations (“FFO”), as defined by
the National Association of Real Estate Investment Trusts (“NAREIT”), to be a
useful supplemental, non-GAAP measure of DCT Industrial’s operating
performance. NAREIT developed FFO as a relative measure of performance of an
equity REIT in order to recognize that the value of income-producing real
estate historically has not depreciated on the basis determined under GAAP.
FFO is generally defined as net income attributable to common stockholders,
calculated in accordance with GAAP, plus real estate-related depreciation and
amortization, less gains from dispositions of operating real estate held for
investment purposes, plus impairment losses on depreciable real estate and
impairments of in substance real estate investments in investees that are
driven by measureable decreases in the fair value of the depreciable real
estate held by the unconsolidated joint ventures and adjustments to derive DCT
Industrial’s pro rata share of FFO of unconsolidated joint ventures. We
exclude gains and losses on business combinations and include the gains or
losses from dispositions of properties which were acquired or developed with
the intention to sell or contribute to an investment fund in our definition of
FFO. Although the NAREIT definition of FFO predates the guidance for
accounting for gains and losses on business combinations, we believe that
excluding such gains and losses is consistent with the key objective of FFO as
a performance measure. We also present FFO excluding severance, acquisition
costs, debt modification costs and impairment losses on properties which are
not depreciable. We believe that FFO excluding severance, acquisition costs,
debt modification costs and impairment losses on non-depreciable real estate
is useful supplemental information regarding our operating performance as it
provides a more meaningful and consistent comparison of our operating
performance and allows investors to more easily compare our operating results.
Readers should note that FFO captures neither the changes in the value of DCT
Industrial’s properties that result from use or market conditions, nor the
level of capital expenditures and leasing commissions necessary to maintain
the operating performance of DCT Industrial’s properties, all of which have
real economic effect and could materially impact DCT Industrial’s results from
operations. NAREIT’s definition of FFO is subject to interpretation, and
modifications to the NAREIT definition of FFO are common. Accordingly, DCT
Industrial’s FFO may not be comparable to other REITs’ FFO and FFO should be
considered only as a supplement to net income (loss) as a measure of DCT
Industrial’s performance.

DCT Industrial calculates our fixed charge coverage calculation based on
adjusted EBITDA, which represents net loss attributable to DCT common
stockholders before interest, taxes, depreciation, amortization, stock-based
compensation expense, noncontrolling interest, impairment losses and excludes
non-FFO gains and losses on disposed assets and business combinations. We use
adjusted EBITDA to measure our operating performance and to provide investors
relevant and useful information because it allows fixed income investors to
view income from our operations on an unleveraged basis before the effects of
non-cash items, such as depreciation and amortization and stock-based
compensation expense, and irregular items, such as non-FFO gains or losses
from the dispositions of real estate, impairment losses and gains and losses
on business combinations.

Forward-Looking Statements

We make statements in this document that are considered “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933,
as amended, or the Securities Act, and Section 21E of the Securities Exchange
Act of 1934, as amended, or the Exchange Act, which are usually identified by
the use of words such as “anticipates,” “believes,” “estimates,” “expects,”
“intends,” “may,” “plans,” “projects,” “seeks,” “should,” “will,” and
variations of such words or similar expressions. We intend these
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995 and are including this statement for purposes of complying
with those safe harbor provisions. These forward-looking statements reflect
our current views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available to us and on
assumptions we have made. Although we believe that our plans, intentions,
expectations, strategies and prospects as reflected in or suggested by those
forward-looking statements are reasonable, we can give no assurance that the
plans, intentions, expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those described in the
forward-looking statements and will be affected by a variety of risks and
factors that are beyond our control including, without limitation: national,
international, regional and local economic conditions, including, in
particular, the impact of the economic downturn and the strength of the
economic recovery and the potential impact of the financial crisis in Europe;
the general level of interest rates and the availability of capital; the
competitive environment in which we operate; real estate risks, including
fluctuations in real estate values and the general economic climate in local
markets and competition for tenants in such markets; decreased rental rates or
increasing vacancy rates; defaults on or non-renewal of leases by tenants;
acquisition and development risks, including failure of such acquisitions and
development projects to perform in accordance with projections; the timing of
acquisitions, dispositions and developments; natural disasters such as fires,
floods, tornadoes, hurricanes and earthquakes; energy costs; the terms of
governmental regulations that affect us and interpretations of those
regulations, including the costs of compliance with those regulations, changes
in real estate and zoning laws and increases in real property tax rates;
financing risks, including the risk that our cash flows from operations may be
insufficient to meet required payments of principal, interest and other
commitments; lack of or insufficient amounts of insurance; litigation,
including costs associated with prosecuting or defending claims and any
adverse outcomes; the consequences of future terrorist attacks or civil
unrest; environmental liabilities, including costs, fines or penalties that
may be incurred due to necessary remediation of contamination of properties
presently owned or previously owned by us; and other risks and uncertainties
detailed in the section of our Form 10-K filed with the SEC and updated on
Form 10-Q entitled “Risk Factors.” In addition, our current and continuing
qualification as a real estate investment trust, or REIT, involves the
application of highly technical and complex provisions of the Internal Revenue
Code of 1986, or the Code, and depends on our ability to meet the various
requirements imposed by the Code through actual operating results,
distribution levels and diversity of stock ownership. We assume no obligation
to update publicly any forward looking statements, whether as a result of new
information, future events or otherwise.

Contact:

DCT Industrial Trust Inc.
Melissa Sachs, 303-597-2400
investorrelations@dctindustrial.com
 
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