DCT Industrial Trust Inc.® Reports Third Quarter 2013 Results

  DCT Industrial Trust Inc.® Reports Third Quarter 2013 Results

Same-Store NOI Growth of 5.9 Percent on a Cash Basis and 2.7 Percent on a GAAP
                                 Basis in Q3

             Signed Leases Totaling 4.4 Million Square Feet in Q3

    Occupancy Increased to 92.8 Percent in Q3; Up from 91.9 Percent in Q2

                         FFO of $0.12 per Share in Q3

     Stabilized Three Development Buildings Totaling 559,000 Square Feet,
    Executed 502,000 Square Feet of Development and Redevelopment Leases,
  Commenced Construction on Four Buildings Totaling 1.5 Million Square Feet

  Acquired 15 Buildings for $123.3 Million and Sold 32 Buildings for $112.7
                                   Million;
                            Company Exited Mexico

                  Executed $275 Million Debut Bond Offering

                         Company Raises FFO Guidance

Business Wire

DENVER -- October 31, 2013

DCT Industrial Trust Inc.^® (NYSE: DCT), a leading industrial real estate
company, today announced financial results for the quarter ending September
30, 2013.

“We had a strong quarter across all aspects of our business. Operating
performance is ahead of plan with nearly 93 percent occupancy and our market
teams continue to source very attractive acquisition and development
opportunities,” said Phil Hawkins, Chief Executive Officer of DCT Industrial.
“We also successfully closed on the sale of our Mexico assets, allowing us to
complete our exit from those markets and focus all our resources in the United
States. We also sold all of our flex/high office finish assets in Dallas to
continue upgrading the quality and consistency of our portfolio. In addition,
we successfully executed our debut bond offering, further broadening our
sources of capital and reinforcing the quality of our operating platform,
property portfolio and balance sheet.”

Funds from Operations, as adjusted, attributable to common stockholders and
unitholders (“FFO”) for Q3 2013 totaled $39.3 million, or $0.12 per diluted
share, compared with $28.3 million, or $0.10 per diluted share, for Q3 2012.
These results exclude $0.4 million and $0.2 million of acquisition costs for
the quarters ending September 30, 2013 and 2012, respectively.

FFO, for the nine months ending September 30, 2013 totaled $106.2 million, or
$0.34 per diluted share, compared with $85.1 million, or $0.31 per diluted
share, for the first nine months of 2012. These results exclude $1.6 million
and $1.0 million of acquisition costs for the nine months ending September 30,
2013 and 2012, respectively.

Net loss attributable to common stockholders for Q3 2013 was $10.2 million, or
$0.03 per diluted share, compared with net income attributable to common
stockholders of $7.5 million, or $0.03 per diluted share, reported for Q3
2012. Net income attributable to common stockholders for the nine months
ending September 30, 2013 was $1.9 million, or $0.00 per diluted share,
compared with a net loss of $14.2 million, or $0.06 per diluted share, for the
nine months ending September 30, 2012.

Property Results and Leasing Activity

Net operating income (“NOI”) was $53.8 million in Q3 2013, compared with $43.1
million in Q3 2012. In Q3 2013, same-store NOI, excluding revenue from lease
terminations, increased 5.9 percent on a cash basis and 2.7 percent on a GAAP
basis, when compared to the same period of 2012. Same-store occupancy averaged
91.9 percent in Q3 2013, an increase of 140 basis points over Q3 2012.

In Q3 2013, the Company signed leases totaling 4.4 million square feet. Rental
rates on signed leases increased 2.9 percent on a GAAP basis and decreased 4.4
percent on a cash basis compared to the corresponding expiring leases. Over
the previous four quarters, rental rates on signed leases increased 6.3
percent on a GAAP basis and decreased 2.1 percent on a cash basis. The
Company’s tenant retention rate was 81.2 percent for Q3 2013 and 68.4 percent
year-to-date.

As of September 30, 2013, DCT Industrial owned 411 consolidated operating
properties, totaling 62.2 million square feet, with occupancy of 92.8 percent
up from 91.9 percent as of June 30, 2013 and up 100 basis points from
September 30, 2012. In addition, approximately 847,000 square feet, or 1.3
percent of DCT Industrial’s total consolidated portfolio, was leased but not
yet occupied at September 30, 2013. Additionally, the Company has leased 1.3
million square feet of its developments under construction.

Investment Activity

Acquisitions

Since June 30, 2013, DCT Industrial acquired fifteen buildings for $123.3
million. These acquisitions total 2.3 million square feet and were 81.4
percent occupied at the time of closing. The Company expects a year-one
weighted-average cash yield of 5.6 percent and a weighted-average projected
stabilized cash yield of 7.1 percent on these assets.

The table below summarizes acquisitions since June 30, 2013:

Market           Submarket       Square      Occupancy   Closed   Anticipated
                                     Feet                                   Yield*
Dallas, TX       DFW Airport     42,000      100.0%      Aug-13   7.6%
Phoenix, AZ (3     Tempe/Airport     308,000       100.0%        Aug-13     6.6%
buildings)
Seattle, WA        Kent Valley       39,000        100.0%        Aug-13     6.4%
Atlanta, GA        Northwest         405,000       100.0%        Oct-13     7.2%
Chicago, IL (6     Elgin             1,060,000     59.1%         Oct-13     7.5%
buildings)
Southern           Inland Empire     153,000       100.0%        Oct-13     5.2%
California         West
Miami, FL          North Central     211,000       100.0%        Oct-13     7.0%
                   Dade
Chicago, IL      O’Hare          110,000     100.0%      Oct-13   11.0%
Total/Weighted                       2,328,000     81.4%                    7.1%
Average

*Anticipated yield represents year-one cash yield for stabilized acquisitions
and projected stabilized cash yield for value-add acquisitions.

Development/ Redevelopment

DCT Industrial invested $35.9 million, including $5.9 million previously
announced, to acquire land parcels in Houston, Seattle and Southern California
for future development of approximately 1.8 million square feet.

The table below summarizes the land acquired:

                                       Project        Planned       Estimated
Market       Submarket   Acres   Name         Number of   Square
                                                      Buildings     Feet
                                       DCT
Houston,                               Northwest
TX           Northwest   38.5    Crossroads   2           739,000
                                       Logistics
                                       Centre
Seattle,       Kent          2.5       DCT Auburn     1             49,000
WA             Valley                  44
Southern       Inland                  DCT Jurupa
California   Empire      45.4    Ranch        1           970,000
               West
Total                       86.4                     4             1,758,000
                                                                              

In addition, DCT Industrial:

  *Stabilized DCT Commerce Center at Pan American West, a 334,000 square
    foot, two-building project in the Airport West submarket of Miami.
  *Stabilized Rockdale Distribution Center, a 225,000 square foot facility in
    the Wilson County submarket of Nashville.
  *Executed a 401,000 square foot long-term lease at DCT 55 located in the
    I-55 industrial submarket of Chicago.
  *Executed a 102,000 square foot lease for the entire redevelopment project
    at 2567 Greenleaf in Elk Grove Village, IL.
  *Commenced construction on DCT White River Corporate Center, a 649,000
    square foot speculative development in the Kent Valley submarket of
    Seattle. Shell construction is expected to be completed in Q2 2014.
  *Commenced construction on Slover Logistics Center II, a 610,000 square
    foot building located in the Inland Empire West submarket of Southern
    California. This second phase is expected to be completed in Q1 2014 and
    will finish the 1.3 million square foot industrial campus which is fully
    leased to a single tenant.
  *Commenced construction on DCT Sumner Distribution Center, a 190,000 square
    foot speculative development in the Kent Valley submarket of Seattle.
    Shell construction is expected to be completed in Q1 2014.
  *Commenced construction on DCT Auburn 44, a 49,000 square foot
    build-to-suit with a long term lease, located in the Kent Valley submarket
    of Seattle. Construction is expected to be completed in Q1 2014.

Dispositions

In October, DCT Industrial closed on the sale of all of its Mexico assets to
an investment trust of Macquarie Mexican REIT. Additionally, since June 30,
2013, the Company completed the disposition of 17 flex and high office finish
buildings totaling 640,000 square feet in Dallas. These transactions generated
total gross proceeds of $112.7 million and have an expected year-one weighted
average cash yield of 7.4 percent.

The table below summarizes the dispositions since June 30, 2013:

Market               Submarket      Square       Occupancy   Closed
                                        Feet
Dallas, TX (2        Northeast      81,000       62.2%       July-13
buildings)
Dallas, TX (15         DFW Airport      559,000        72.2%         Oct-13
buildings)             & Northwest
Mexico (15                         1,653,000    100.0%      Oct-13
buildings)
Total/Weighted                          2,293,000      91.9%
Average
                                                                             

Capital Markets

In October, in its debut bond offering, DCT Industrial issued $275 million
(aggregate principal amount) of 10-year senior unsecured notes at 99.038
percent of face value for net proceeds of approximately $269.6 million after
expenses. The notes have a fixed interest rate of 4.5 percent. The Company
used the net proceeds from these notes to repay its $175 million senior
unsecured term loan, as well as other debt maturities and for general
corporate purposes. Prior to issuing these notes, DCT Industrial announced it
received investment-grade corporate ratings from two major U.S. ratings
agencies. DCT Industrial received a Baa2 rating from Moody’s Investors Service
and a BBB- from Standard & Poor’s Rating Services.

In August, DCT Industrial issued 23.0 million shares in a public offering of
common stock raising net proceeds of approximately $158.2 million after
expenses. The Company used the net proceeds received from this offering for
acquisitions, development activities, repayment of amounts outstanding under
its senior unsecured revolving credit facility, and for general corporate
purposes.

Dividend

DCT Industrial’s Board of Directors has declared a $0.07 per share quarterly
cash dividend, payable on January 9, 2014 to stockholders of record as of
December 27, 2013.

Guidance

The Company has increased 2013 FFO guidance, as adjusted, to $0.44 to $0.45
per diluted share, up from $0.42 to $0.45. Additionally, net income
attributable to common stockholders is expected to be between $0.05 and $0.06
earnings per diluted share.

The Company’s FFO guidance excludes acquisition costs.

Conference Call Information

DCT Industrial will host a conference call to discuss Q3 2013 results on
Friday, November 1, 2013 at 11:00 a.m. Eastern Time. Stockholders and
interested parties may listen to a live broadcast of the conference call by
dialing (888) 317-6016 or (412) 317-6016. A telephone replay will be available
through Friday, November 15, 2013 and can be accessed by dialing (877)
344-7529 or (412) 317-0088 and entering the passcode 10034396. 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 1, 2014.

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, 2013, the Company owned
interests in approximately 75.4 million square feet of properties leased to
approximately 960 customers, including 12.3 million square feet operated on
behalf of four institutional capital management partners. Additional
information is available at www.dctindustrial.com.

Click here to subscribe to Mobile Alerts for DCT Industrial.

                                                            
DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share information)
                                                                 
                                             September 30,       December 31,
                                             2013                2012
ASSETS                                       (unaudited)
Land                                         $ 845,831           $ 780,235
Buildings and improvements                     2,500,382           2,481,206
Intangible lease assets                        75,268              78,467
Construction in progress                      92,848            45,619    
Total investment in properties                 3,514,329           3,385,527
Less accumulated depreciation and             (629,557  )        (605,888  )
amortization
Net investment in properties                   2,884,772           2,779,639
Investments in and advances to                125,349           130,974   
unconsolidated joint ventures
Net investment in real estate                  3,010,121           2,910,613
Cash and cash equivalents                      19,362              12,696
Restricted cash                                4,346               10,076
Deferred loan costs, net                       8,460               6,838
Straight-line rent and other receivables,
net of allowance for doubtful                  46,564              51,179
accounts of $1,957 and $1,251,
respectively
Other assets, net                              22,556              12,945
Assets held for sale                          122,197           52,852    
Total assets                                 $ 3,233,606        $ 3,057,199 
                                                                 
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses        $ 68,334            $ 57,501
Distributions payable                          23,556              21,129
Tenant prepaids and security deposits          22,803              24,395
Other liabilities                              7,299               7,213
Intangible lease liability, net                19,299              20,148
Line of credit                                 52,000              110,000
Senior unsecured notes                         1,075,000           1,025,000
Mortgage notes                                 314,728             317,314
Liabilities related to assets held for        2,219             940       
sale
Total liabilities                             1,585,238         1,583,640 
                                                                 
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, 500,000,000
shares authorized
315,931,573 and 280,310,488 shares issued      3,159               2,803
and outstanding as of
September 30, 2013 and December 31, 2012,
respectively
Additional paid-in capital                     2,480,144           2,232,682
Distributions in excess of earnings            (932,504  )         (871,655  )
Accumulated other comprehensive loss          (31,537   )        (34,766   )
Total stockholders’ equity                     1,519,262           1,329,064
Noncontrolling interests                      129,106           144,495   
Total equity                                  1,648,368         1,473,559 
Total liabilities and equity                 $ 3,233,606        $ 3,057,199 
                                                                             

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,
                         2013         2012          2013         2012
REVENUES:
Rental revenues          $ 73,732      $ 60,719      $ 211,509     $ 175,256
Institutional capital
management and other      620         937         2,139       3,143   
fees
Total revenues            74,352      61,656      213,648     178,399 
                                                                     
OPERATING EXPENSES:
Rental expenses            8,802         8,233         26,113        22,311
Real estate taxes          11,085        9,431         33,361        27,444
Real estate related
depreciation and           32,990        27,512        95,071        81,953
amortization
General and                6,120         6,766         19,823        18,908
administrative
Casualty and
involuntary conversion    (294    )    -           (296    )    (141    )
gain
Total operating           58,703      51,942      174,072     150,475 
expenses
Operating income           15,649        9,714         39,576        27,924
                                                                     
OTHER INCOME
(EXPENSE):
Development profit         -             -             268           -
Equity in earnings of
unconsolidated joint       759           1,208         1,721         784
ventures, net
Interest expense           (15,141 )     (17,299 )     (47,328 )     (51,769 )
Interest and other         82            70            310           229
income
Income tax benefit
(expense) and other       60          (24     )    (373    )    (579    )
taxes
Income (loss) from         1,409         (6,331  )     (5,826  )     (23,411 )
continuing operations
Income (loss) from
discontinued              (12,192 )    14,592      8,346       7,301   
operations
Consolidated net
income (loss) of DCT       (10,783 )     8,261         2,520         (16,110 )
Industrial
Trust Inc.
Net (income) loss
attributable to           626         (713    )    (589    )    1,870   
noncontrolling
interests
Net income (loss)
attributable to common     (10,157 )     7,548         1,931         (14,240 )
stockholders
Distributed and
undistributed earnings
allocated to              (173    )    (134    )    (519    )    (400    )
participating
securities
Adjusted net income
(loss) attributable to   $ (10,330 )   $ 7,414      $ 1,412      $ (14,640 )
common stockholders
                                                                     
EARNINGS PER COMMON
SHARE - BASIC
Income (loss) from       $ 0.00        $ (0.02   )   $ (0.02   )   $ (0.09   )
continuing operations
Income (loss) from
discontinued              (0.03   )    0.05        0.02        0.03    
operations
Net income (loss)
attributable to common   $ (0.03   )   $ 0.03       $ 0.00       $ (0.06   )
stockholders
                                                                     
EARNINGS PER COMMON
SHARE - DILUTED
Income (loss) from       $ 0.00        $ (0.02   )   $ (0.02   )   $ (0.09   )
continuing operations
Income (loss) from
discontinued              (0.03   )    0.05        0.02        0.03    
operations
Net income (loss)
attributable to common   $ (0.03   )   $ 0.03       $ 0.00       $ (0.06   )
stockholders
                                                                     
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic                      304,768       253,657       292,352       249,381
Diluted                   305,673     253,657     292,352     249,381 
                                                                     
Distributions declared   $ 0.07        $ 0.07        $ 0.21        $ 0.21
per common share
                                                                             

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

                         September 30,               September 30,
Reconciliation of net
income (loss)            2013         2012          2013         2012
attributable to common
stockholders to FFO:
Net income (loss)
attributable to common   $ (10,157 )   $ 7,548       $ 1,931       $ (14,240 )
stockholders
Adjustments:
Real estate related
depreciation and           34,732        30,934        101,593       94,676
amortization
Equity in earnings of
unconsolidated joint       (759    )     (1,208  )     (1,721  )     (784    )
ventures, net
Equity in FFO of
unconsolidated joint       2,735         2,590         7,530         7,883
ventures
Impairment losses on
depreciable real           13,279        -             13,279        11,422
estate
Gain on dispositions
of real estate             (75     )     (12,227 )     (17,614 )     (12,348 )
interests
Gain on dispositions
of non-depreciable         -             -             31            -
real estate
Noncontrolling
interest in the above      (3,227  )     (1,804  )     (7,066  )     (9,921  )
adjustments
FFO attributable to       2,320       2,276       6,602       7,377   
unitholders
FFO attributable to
common stockholders       38,848      28,109      104,565     84,065  
and unitholders^(1)
Adjustments:
Acquisition costs         443         192         1,648       987     
FFO, as adjusted,
attributable to common
stockholders and         $ 39,291     $ 28,301     $ 106,213    $ 85,052  
unitholders – basic
and diluted
                                                                     
FFO per common share
and unit — basic and     $ 0.12       $ 0.10       $ 0.33       $ 0.31    
diluted
                                                                     
FFO, as adjusted, per
common share and unit    $ 0.12       $ 0.10       $ 0.34       $ 0.31    
— basic and diluted
                                                                     
FFO weighted average
common shares and
units outstanding:
Common shares for
earnings per share -       304,768       253,657       292,352       249,381
basic
Participating              2,526         1,999         2,445         1,862
securities
Units                     18,620      22,335      19,513      24,003  
FFO weighted average
common shares,
participating              325,914       277,991       314,310       275,246
securities and units
outstanding – basic
Dilutive common stock     905         663         868         618     
equivalents
FFO weighted average
common shares,
participating             326,819     278,654     315,178     275,864 
securities and units
outstanding – diluted
                                                                             
^(1) Funds from Operations, FFO, as defined by the National Association of
Real Estate Investment Trusts (NAREIT).
                                                                             

Guidance
                                
The Company is providing the         
following guidance:
                                     Range for the Full-Year
                                     2013
Guidance:                            Low                    High
Earnings per common share -          $    0.05              $    0.06
diluted
Gains on sale of real estate              (0.09    )              (0.09    )
Impairments and acquisition               0.05                    0.05
costs, net
Real estate related
depreciation and                         0.43                 0.43     
amortization^(1)
FFO, as adjusted, per common         $    0.44             $    0.45     
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 acquisition costs.


The following table shows the calculation of our Fixed Charge Coverage for the
three and nine months ended
September 30, 2013 and 2012 (in thousands):
                                                  
                     Three Months Ended              Nine Months Ended
                     September 30,                   September 30,
                     2013             2012          2013         2012
Net income (loss)
attributable to      $  (10,157  )     $ 7,548       $ 1,931       $ (14,240 )
common
stockholders^(1)
Interest expense        15,141           17,299        47,328        51,898
Proportionate
share of interest
expense                 398              765           1,257         2,366
from
unconsolidated
joint ventures
Real estate
related                 34,732           30,934        101,593       94,676
depreciation and
amortization
Proportionate
share of real
estate related
depreciation and        1,478            1,708         4,440         5,773
amortization from
unconsolidated
joint ventures
Income tax
(benefit) expense       (43      )       68            390           623
and other
taxes
Stock-based             1,292            1,063         3,648         3,078
compensation
Noncontrolling          (626     )       713           589           (1,870  )
interests
Non-FFO gains on
dispositions of         (75      )       (12,227 )     (17,583 )     (12,348 )
real
estate interests
Impairment losses      13,279         -           13,279      11,422  
Adjusted EBITDA      $  55,419        $ 47,871     $ 156,872    $ 141,378 
                                                                   
CALCULATION OF
FIXED CHARGES
Interest expense     $  15,141         $ 17,299      $ 47,328      $ 51,898
Capitalized             2,107            1,113         6,058         2,583
interest
Amortization of
loan costs and          (55      )       (317    )     (155    )     (809    )
debt
Other noncash           (1,000   )       (524    )     (3,000  )     (1,026  )
interest expense
Proportionate
share of interest
expense                398            765         1,257       2,366   
from
unconsolidated
joint ventures
Total fixed          $  16,591        $ 18,336     $ 51,488     $ 55,012  
charges
                                                                   
Fixed charge           3.3            2.6         3.0         2.6     
coverage
                                                                             
^(1) Includes amounts related to discontinued operations, when applicable.


The following table is a reconciliation of our reported income (loss) from
continuing operations to our net operating income
for the three and nine months ended September 30, 2013 and 2012 (in
thousands):
                                                 
                   Three Months Ended               Nine Months Ended
                   September 30,                    September 30,
Reconciliation
of income
(loss) from        2013            2012            2013          2012
continuing
operations to
NOI:
Income (loss)
from continuing    $  1,409         $  (6,331  )    $ (5,826  )    $ (23,411 )
operations
Income tax
expense               (60     )        24             373            579
(benefit) and
other taxes
Interest and          (82     )        (70     )      (310    )      (229    )
other income
Interest              15,141           17,299         47,328         51,769
expense
Equity in
earnings of
unconsolidated        (759    )        (1,208  )      (1,721  )      (784    )
joint
ventures, net
Development           -                -              (268    )      -
profit
Casualty and
involuntary           (294    )        -              (296    )      (141    )
conversion gain
General and           6,120            6,766          19,823         18,908
administrative
Real estate
related
depreciation          32,990           27,512         95,071         81,983
and
amortization
Institutional
capital
management and       (620    )       (937    )     (2,139  )     (3,143  )
other
fees
Total GAAP net
operating             53,845           43,055         152,035        125,501
income
Less net
operating
(income) loss -      (7,492  )       1,776        (18,038 )     4,029   
non-same store
properties
Same store GAAP
net operating         46,353           44,831         133,997        129,530
income
Less revenue
from lease           (517    )       (186    )     (828    )     (400    )
terminations
Same store GAAP
net operating
income,
excluding             45,836           44,645         133,169        129,130
revenue from
lease
terminations
Less
straight-line
rents, net of         116              (1,374  )      (469    )      (4,443  )
related bad
debt expense
Less
amortization of
above/(below)        (326    )       (198    )     (838    )     (449    )
market
rents, net
Same store cash
net operating
income,
excluding          $  45,626       $  43,073      $ 131,862     $ 124,238 
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 measurable 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 and includes statements
regarding our anticipated yields. 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 strength of
the United States economic recovery and global economic recovery; 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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