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DUKE REALTY CORP - Annual Report: 2020 (Form 10-K)


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
☒ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2020
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             .
Commission File Number: 1-9044 (Duke Realty Corporation) 0-20625 (Duke Realty Limited Partnership)
dre-20201231_g1.jpg
DUKE REALTY CORPORATION
DUKE REALTY LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in Its Charter)
Indiana(Duke Realty Corporation) 35-1740409 (Duke Realty Corporation)
Indiana(Duke Realty Limited Partnership)35-1898425 (Duke Realty Limited Partnership)
(State or Other Jurisdiction
of Incorporation or Organization)		 (I.R.S. Employer
Identification Number)
8711 River Crossing Boulevard 
Indianapolis,Indiana46240
        (Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code:
(317)808-6000
Securities registered pursuant to Section 12(b) of the Act:
Title of ClassTrading Symbol(s)Name of Exchange on Which Registered
Duke Realty CorporationCommon Stock, $0.01 par valueDRENew York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Duke Realty Corporation
Yes
☒
No
☐
Duke Realty Limited PartnershipYes☒No☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  
Duke Realty CorporationYes☐
No
☒Duke Realty Limited PartnershipYes☐No☒
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Duke Realty Corporation
Yes
☒
No
☐
Duke Realty Limited PartnershipYes☒No☐
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Duke Realty CorporationYes
☒
No
☐
Duke Realty Limited PartnershipYes☒No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company", and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Duke Realty Corporation:
Large accelerated filer
☒
Accelerated filer  ☐
Non-accelerated filer  ☐
Smaller reporting company  ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Duke Realty Limited Partnership:
Large accelerated filer
 ☐
Accelerated filer  ☐
Non-accelerated filer  ☒
Smaller reporting company  ☐
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Duke Realty Corporation
Yes
☒
No
☐
Duke Realty Limited PartnershipYes☒No☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Duke Realty CorporationYes☐No☒Duke Realty Limited PartnershipYes☐No☒
The aggregate market value of the voting shares of Duke Realty Corporation's outstanding common shares held by non-affiliates of Duke Realty Corporation is $13.19 billion based on the last reported sale price on June 30, 2020.
The number of common shares of Duke Realty Corporation, $0.01 par value outstanding as of February 17, 2021 was 373,765,851.
DOCUMENTS INCORPORATED BY REFERENCE
Certain portions of Duke Realty Corporation's Definitive Proxy Statement for its 2021 Annual Meeting of Shareholders (the "2021 Proxy Statement") to be filed pursuant to Rule 14a-6 of the Securities Exchange Act of 1934, as amended, are incorporated by reference into this Form 10-K. Other than those portions of the 2021 Proxy Statement specifically incorporated by reference pursuant to Items 10 through 14 of Part III hereof, no other portions of the 2021 Proxy Statement shall be deemed so incorporated.


EXPLANATORY NOTE
This report (the "Report") combines the annual reports on Form 10-K for the year ended December 31, 2020 of both Duke Realty Corporation and Duke Realty Limited Partnership. Unless stated otherwise or the context otherwise requires, references to "Duke Realty Corporation" or the "General Partner" mean Duke Realty Corporation and its consolidated subsidiaries; and references to the "Partnership" mean Duke Realty Limited Partnership and its consolidated subsidiaries. The terms the "Company," "we," "us" and "our" refer to the General Partner and the Partnership, collectively, and those entities owned or controlled by the General Partner and/or the Partnership.
Duke Realty Corporation is a self-administered and self-managed real estate investment trust ("REIT") and is the sole general partner of the Partnership, owning 99.1% of the common partnership interests of the Partnership ("General Partner Units") as of December 31, 2020. The remaining 0.9% of the common partnership interests ("Limited Partner Units" and, together with the General Partner Units, the "Common Units") are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership.
The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same.
We believe combining the annual reports on Form 10-K of the General Partner and the Partnership into this single report results in the following benefits:
•enhances investors' understanding of the General Partner and the Partnership by enabling investors to view the business as a whole in the same manner as management views and operates the business;
•eliminates duplicative disclosure and provides a more streamlined and readable presentation of information since a substantial portion of the Company's disclosure applies to both the General Partner and the Partnership; and
•creates time and cost efficiencies through the preparation of one combined report instead of two separate reports.
We believe it is important to understand the few differences between the General Partner and the Partnership in the context of how we operate as an interrelated consolidated company. The General Partner's only material asset is its ownership of partnership interests in the Partnership. As a result, the General Partner does not conduct business itself, other than acting as the sole general partner of the Partnership and issuing public equity from time to time. The General Partner does not issue any indebtedness, but does guarantee some of the unsecured debt of the Partnership. The Partnership holds substantially all the assets of the business, directly or indirectly, and holds the ownership interests related to certain of the Company's investments. The Partnership conducts the operations of the business and has no publicly traded equity. Except for net proceeds from equity issuances by the General Partner, which are contributed to the Partnership in exchange for General Partner Units or Preferred Units, the Partnership generates the capital required by the business through its operations, its incurrence of indebtedness and the issuance of Limited Partner Units to third parties.
Noncontrolling interests, shareholders' equity and partners' capital are the main areas of difference between the consolidated financial statements of the General Partner and those of the Partnership. The noncontrolling interests in the Partnership's financial statements include the interests in consolidated investees not wholly owned by the Partnership. The noncontrolling interests in the General Partner's financial statements include the same noncontrolling interests at the Partnership level, as well as the common limited partnership interests in the Partnership, which are accounted for as partners' capital by the Partnership.
In order to highlight the differences between the General Partner and the Partnership, there are separate sections in this report, as applicable, that separately discuss the General Partner and the Partnership, including separate financial statements and separate Exhibit 31 and 32 certifications. In the sections that combine disclosure of the General Partner and the Partnership, this report refers to actions or holdings as being actions or holdings of the collective Company.




TABLE OF CONTENTS
Form 10-K
Item No. Page(s)
1.
1A.
1B.
2.
3.
4.
5.
6.
7.
7A.
8.
9.
9A.
9B.
10.
11.
12.
13.
14.
15.
16.
Form 10-K Summary


IMPORTANT INFORMATION ABOUT THIS REPORT
Cautionary Notice Regarding Forward-Looking Statements
Certain statements contained in or incorporated by reference into this Report on Form 10-K for the General Partner and the Partnership, including, without limitation, those related to our future operations, constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe," "estimate," "expect," "anticipate," "intend," "strategy," "continue," "plan," "seek," "could," "may" and similar expressions or statements regarding future periods are intended to identify forward-looking statements, although not all forward-looking statements may contain such words.
These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any predictions of future results, performance or achievements that we express or imply in this Report or in the information incorporated by reference into this Report. Some of the risks, uncertainties and other important factors that may affect future results include, among others: 
•The impact of the COVID-19 pandemic on our business, our tenants and the economy in general, including the measures taken by governmental authorities to address it;
•Changes in general economic and business conditions, including the financial condition of our tenants and the value of our real estate assets;
•Changes to U.S. laws, regulations, rules and policies, including changes that may be forthcoming as a result of the change in administration in the U.S.;
•The General Partner's continued qualification as a REIT for U.S. federal income tax purposes;
•Heightened competition for tenants and potential decreases in property occupancy;
•Potential changes in the financial markets and interest rates;
•Volatility in the General Partner's stock price and trading volume;
•Our continuing ability to raise funds on favorable terms, or at all;
•Our ability to successfully identify, acquire, develop and/or manage properties on terms that are favorable to us;
•Potential increases in real estate construction costs including construction cost increases as the result of trade disputes and tariffs on goods imported in the United States;
•Our real estate asset concentration in the industrial sector and potential volatility in this sector;
•Our ability to successfully dispose of properties on terms that are favorable to us;
•Our ability to successfully integrate our acquired properties;
•Our ability to retain our current credit ratings;
•Inherent risks related to disruption of information technology networks and related systems and cyber security attacks;
•Inherent risks in the real estate business, including, but not limited to, tenant defaults, potential liability relating to environmental matters and liquidity of real estate investments; and
•Other risks and uncertainties described herein, as well as those risks and uncertainties discussed from time to time in our other reports and other public filings with the Securities and Exchange Commission ("SEC").
Although we presently believe that the plans, expectations and anticipated results expressed in or suggested by the forward-looking statements contained in or incorporated by reference into this Report are reasonable, all forward-
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looking statements are inherently subjective, uncertain and subject to change, as they involve substantial risks and uncertainties, including those beyond our control. New factors emerge from time to time, and it is not possible for us to predict the nature, or assess the potential impact, of each new factor on our business. Given these uncertainties, we caution you not to place undue reliance on these forward-looking statements. We undertake no obligation to update or revise any of our forward-looking statements for events or circumstances that arise after the statement is made, except as otherwise may be required by law.
The above list of risks and uncertainties is only a summary of some of the most important factors and is not intended to be exhaustive. Additional information regarding risk factors that may affect us is included under the caption "Risk Factors" in this Report, and is updated by us from time to time in Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings that we make with the SEC.

PART I
Item 1.  Business
Background
The General Partner and Partnership collectively specialize in the ownership, management and development of bulk distribution ("industrial") real estate.
The General Partner is a self-administered and self-managed REIT, which began operations upon completion of an initial public offering in February 1986.
The Partnership was formed in October 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. The General Partner is the sole general partner of the Partnership, owning 99.1% of the Common Units at December 31, 2020. The remaining 0.9% of the Common Units are owned by limited partners. Limited partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Fifth Amended and Restated Agreement of Limited Partnership, as amended (the "Partnership Agreement"), the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner.
At December 31, 2020, we owned or jointly controlled 537 primarily industrial properties which encompassed 159.6 million rentable square feet (including 40 unconsolidated joint venture in-service properties with 11.5 million square feet, 16 consolidated properties under development with 6.9 million square feet and one unconsolidated joint venture property under development with 517,000 square feet). Our properties are leased by a diverse base of more than 800 tenants whose businesses include e-commerce, manufacturing, retailing, wholesale trade, and distribution. We have one tenant, to whom we both lease a significant amount of space and also provide general contractor and construction management services, from whom we derived greater than 10.0% of our total revenues. We also owned, including through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), 1,000 acres of land and controlled an additional 800 acres through purchase options.
Our headquarters and executive offices are located in Indianapolis, Indiana. We additionally have regional offices or significant operations in 19 other geographic or metropolitan areas including Atlanta, Georgia; Chicago, Illinois; Cincinnati, Ohio; Columbus, Ohio; Dallas, Texas; Houston, Texas; Minneapolis/St. Paul, Minnesota; Nashville, Tennessee; Raleigh, North Carolina; Savannah, Georgia; Seattle, Washington; St. Louis, Missouri; Washington D.C./Baltimore, Maryland; Central Florida; New Jersey; Northern and Southern California; Pennsylvania and South Florida.
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See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" for information related to our operational, asset and capital strategies.
Competitive Conditions
As a fully integrated commercial real estate firm, we provide in-house leasing, management, development and construction services which we believe, coupled with our significant base of commercially zoned and unencumbered land in existing business parks, should give us a competitive advantage as a real estate operator and in future development activities.
We believe that the management of real estate opportunities and risks can be done most effectively at regional or on local levels. As a result, we intend to continue our emphasis on increasing our market share, to the extent it is in markets that align with our asset strategy (see Item 7), and effective rents in the primary markets where we own properties. We believe that this regional focus will allow us to assess market supply and demand for real estate more effectively as well as to capitalize on the strong relationships with our tenant base. In addition, we seek to further capitalize on our many strong relationships with customers that operate on a national level. As a fully integrated real estate company, we are able to arrange for or provide to our tenants not only well located and well maintained facilities, but also additional services such as build-to-suit construction, tenant finish construction, and expansion flexibility.
All of our properties are located in areas that include competitive properties. Institutional investors, other REITs or local real estate operators generally own such properties; however, no single competitor or small group of competitors is dominant in our current markets. The supply of and demand for similar available rental properties may affect the rental rates we will receive on our properties. Other competitive factors include the attractiveness of the property location, the quality of the property and tenant services provided, and the reputation of the owner and operator.
Corporate Governance
Since our inception, we not only have strived to be a top-performer operationally, but also to lead in issues important to investors such as disclosure and corporate governance. The General Partner's system of governance reinforces this commitment and, as a limited partnership that has one general partner owning over 90% of the Partnership's common interest, the governance of the Partnership is necessarily linked to the corporate governance of the General Partner. Summarized below are the highlights of the General Partner's Corporate Governance initiatives. 
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Board Composition  • The General Partner's board is controlled by a supermajority (92.3%) of "Independent Directors," as such term is defined under the rules of the New York Stock Exchange (the "NYSE")
• 50% of the Independent Directors are female or people of color and the General Partner's compensation and human capital committee is chaired by a female
Board Committees  • The General Partner's board committee members are all Independent Directors
Lead Director  • The Lead Director serves as the Chairman of the General Partner's corporate governance committee
Board Policies- Proactively amended and restated the General Partner's Bylaws to implement proxy access
- Adopted a Board Diversity and Inclusion Policy
- No Shareholder Rights Plan (Poison Pill)
- Code of Business Ethics applies to all directors and employees of the General Partner, including the Chief Executive Officer and senior financial officers; waivers applied to executive officers require the approval of (i) the General Partner's board of directors or (ii) the General Partner's corporate governance committee
- Orientation program for new directors of the General Partner
- Independence of directors of the General Partner is reviewed annually
- Independent Directors of the General Partner meet at least quarterly in executive sessions
- Independent Directors of the General Partner receive no compensation from the General Partner other than as directors
- Equity-based compensation plans require the approval of the General Partner's shareholders
- Board effectiveness and performance is reviewed annually by the General Partner's corporate governance committee
- Individual director evaluations are performed annually
- The General Partner's corporate governance committee conducts an annual review of the Chief Executive Officer succession plan
- Independent Directors and all board committees of the General Partner may retain outside advisors, as they deem appropriate
- Prohibition on repricing of outstanding stock options of the General Partner
- Directors of the General Partner required to offer resignation upon job change
- Majority voting for election of directors of the General Partner
- Human Rights Policy
- Shareholder Communications Policy
OwnershipMinimum Stock Ownership Guidelines apply to all directors and executive officers of the General Partner
The General Partner's Code of Business Ethics (which applies to all directors and employees of the General Partner, including the Chief Executive Officer and senior financial officers) and the Corporate Governance Guidelines are available in the Investor Relations/Corporate Governance section of the General Partner's website at www.dukerealty.com. A copy of these documents may also be obtained without charge by writing to Duke Realty Corporation, 8711 River Crossing Boulevard, Indianapolis, Indiana 46240, Attention: Investor Relations. If we amend our Code of Business Ethics as it applies to the directors and all executive officers of the General Partner or grant a waiver from any provision of the Code of Business Ethics to any such person, we may, rather than filing a current report on Form 8-K, disclose such amendment or waiver in the Investor Relations/Corporate Governance section of the General Partner's website at www.dukerealty.com.
Human Capital
We had approximately 350 employees at December 31, 2020 and our average associate tenure was 12.7 years. Our compensation and human capital committee, a board committee, reviews associate turnover and diversity, as well as associate development and engagement programs. We also routinely conduct associate engagement surveys and have received numerous awards for being a great place to work. While attracting, developing and retaining our talent, we are dedicated to fair compensation, fostering an inclusive and diverse culture and a dynamic and balanced work environment, which provides associates with opportunities to perform well and derive satisfaction from their
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work. The compensation structures of many of our senior employees are directly tied to metrics or other objectives that support our corporate strategy.

We require ethical conduct by our employees and all employees are required to complete annual Code of Business Ethics training sessions, and associates and directors must sign off on our Code of Business Ethics every year.

See more information regarding employee benefits and company programs under Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Business Overview - Environmental, Social and Governance Strategy".

Additional Information
For additional information regarding our investments and operations, see Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and Item 8, "Financial Statements and Supplementary Data." For additional information about our business segments, see Item 8, "Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - (10) Segment Reporting."
Available Information
In addition to this Report, we file quarterly and current reports, proxy statements and other information with the SEC. All documents that are filed with the SEC are available free of charge on the General Partner's corporate website, which is www.dukerealty.com. We are not incorporating the information on the General Partner's website into this Report, and the General Partner's website and the information appearing on the General Partner's website is not included in, and is not part of, this Report. You may also access any document filed through the SEC's home page on the Internet (http://www.sec.gov).

Item 1A. Risk Factors
In addition to the other information contained in this Report, you should carefully consider, in consultation with your legal, financial and other professional advisors, the risks described below, as well as the risk factors and uncertainties discussed in our other public filings with the SEC under the caption "Risk Factors" in evaluating us and our business before making a decision regarding an investment in the General Partner's securities.
The risks contained in this Report are not the only risks that we face. Additional risks that are not presently known, or that we presently deem to be immaterial, also could have a material adverse effect on our financial condition, results of operations, business and prospects. The trading price of the General Partner's securities could decline due to the materialization of any of these risks, and its shareholders and/or the Partnership's unitholders may lose all or part of their investment.
This Report also contains forward-looking statements that may not be realized as a result of certain factors, including, but not limited to, the risks described herein and in our other public filings with the SEC. Please refer to the section in this Report entitled "Cautionary Notice Regarding Forward-Looking Statements" for additional information regarding forward-looking statements.
Risks Related to the COVID-19 Pandemic
The full effects of the COVID-19 pandemic are highly uncertain and cannot be predicted.
An outbreak of COVID-19, a respiratory disease caused by a novel corona virus, has spread internationally, including in the United States where we operate. In March 2020, the World Health Organization declared the outbreak to be a pandemic, and the President of the United States declared it a national emergency. Globally, population movement and trade have been restricted to varying degrees. Within the United States, since the time of its onset, various state and local governmental authorities have enacted measures, to varying degrees, aimed at minimizing the spread of COVID-19. Although there are vaccines that have been approved and are in the early stages of distribution, it cannot be predicted how long it will take before a sufficient percentage of the United States' population is vaccinated to return to normal conditions. Additionally, new and potentially more contagious variants of COVID-19 have been identified, which could further amplify the impact of the pandemic. In general, there is
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much uncertainty regarding the COVID-19 pandemic and it may result in prolonged recessionary conditions that could have a further detrimental impact on our tenant base, our ability to lease vacant space and our ability to grow through development and acquisition.

A prolonged COVID-19 outbreak could negatively impact our operations and financial condition.

Should the major public health issues caused by the COVID-19 outbreak persist for an extended period of time, we could be adversely affected by actions limiting trade and population movement, the movement of goods through the supply chain, and other impacts to the general economy, discretionary spending, business and consumer demand that may diminish the demand and rents for our properties. To date, only an insignificant portion of our tenant base has declared bankruptcy as the result of the COVID-19 pandemic. In the event of the default or insolvency of a significant number of our tenants, we may experience a substantial loss of rental revenue and/or delays in collecting rent and incur substantial costs in enforcing our rights as landlord. If a tenant files for bankruptcy protection, a court could allow the tenant to reject and terminate its lease with us.

As a result, our financial condition, results of operations and distributable cash flow would be adversely affected if a significant number of our tenants became unable to meet their obligations to us, became insolvent or declared bankruptcy, and if we are unable to promptly renew the leases or relet the space, or if the rental rates upon such renewal or reletting are significantly lower than current rates.

Our stock price could be negatively impacted by COVID-19.

The COVID-19 outbreak has resulted in significant market volatility, including large swings in global stock prices that have adversely affected trade and global and local economies. These conditions may worsen in future periods and negatively impact our share price.

COVID-19 could adversely affect our ability to finance our operations.

The COVID-19 outbreak has also adversely impacted financial institutions which could, in future periods, negatively impact their willingness to extend credit or result in adverse changes to the terms at which credit is extended. The United States Federal Government has taken certain measures to support continued liquidity and availability of capital, but there is no guarantee that these measures will continue to be successful. These potential risks could negatively impact our future ability to access capital, which would negatively impact our liquidity and our ability to execute our strategic plans.

The ability of our employees to work may be adversely impacted by COVID-19.

Our workforce, including key employees, could be adversely impacted by the outbreak in future periods. Currently, most of our employees are working remotely and some are working on-site. The impacts of the outbreak could, among other things, negatively affect (i) the operation of our properties, (ii) the timeliness of our strategic decision making, (iii) the operation of an effective cyber security function, (iv) the operation of our key information systems, (v) our ability to make timely filings with the SEC and (vi) our ability to maintain an effective control environment.
Risks Related to Our Business
Our use of debt financing could have a material adverse effect on our financial condition.
We are subject to the risks normally associated with debt financing, including the risk that our cash flow will be insufficient to meet required principal and interest payments and the long-term risk that we will be unable to refinance our existing indebtedness, or that the terms of such refinancing will not be as favorable as the terms of existing indebtedness. Additionally, we may not be able to refinance borrowings by our unconsolidated subsidiaries on favorable terms or at all. If our debt cannot be paid, refinanced or extended, we may not be able to make distributions to shareholders and unitholders at expected levels. Further, if prevailing interest rates or other factors at the time of a refinancing result in higher interest rates or other restrictive financial covenants upon the refinancing,
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then such refinancing would adversely affect our cash flow and funds available for operation, development and distribution.
We also have incurred, and may incur in the future, indebtedness that bears interest at variable rates. Thus, if market interest rates increase, so will our interest expense, which could reduce our cash flow and our ability to make distributions to shareholders and unitholders at expected levels.
Debt financing may not be available and equity issuances could be dilutive to our shareholders and unitholders.
Our ability to execute our business strategy depends on our access to an appropriate blend of debt financing, including unsecured lines of credit and other forms of secured and unsecured debt, and equity financing, including common equity and, at times, preferred equity issued by the General Partner. Debt financing may not be available over a longer period of time in sufficient amounts, on favorable terms or at all. If the General Partner issues additional equity securities, instead of debt, to manage capital needs, the interests of our existing shareholders and unitholders could be diluted.
Financial and other covenants under existing credit agreements could limit our flexibility and adversely affect our financial condition.
The terms of our various credit agreements and other indebtedness require that we comply with a number of customary financial and other covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage. These covenants may limit our flexibility in our operations, and breaches of these covenants could result in defaults under the instruments governing the applicable indebtedness even if we have satisfied our payment obligations. As a result, we would also likely be unable to borrow any further amounts under our other debt instruments and other debt obligations may be accelerated, which could adversely affect our ability to fund operations.
Downgrades in our credit ratings could increase our borrowing costs or reduce our access to funding sources in the credit and capital markets.
We have a significant amount of debt outstanding, consisting mostly of unsecured debt. We are currently assigned corporate credit ratings from Moody's Investors Service, Inc. and Standard and Poor's Ratings Group based on their evaluation of our creditworthiness. All of our debt ratings remain investment grade, but there can be no assurance that we will not be downgraded or that any of our ratings will remain investment grade. If our credit ratings are downgraded or other negative action is taken, we could be required, among other things, to pay additional interest and fees on outstanding borrowings under our revolving credit agreement.
Credit rating reductions by one or more rating agencies could also adversely affect our access to funding sources, the cost and other terms of obtaining funding as well as our overall financial condition, operating results and cash flow.
If we are unable to generate sufficient capital and liquidity, then we may be unable to pursue future development projects and other strategic initiatives.
To complete our ongoing and planned development projects, and to pursue our other strategic initiatives, we must continue to generate sufficient capital and liquidity to fund those activities. To generate that capital and liquidity, we rely upon funds from our existing operations, as well as funds that we raise through our capital raising activities. In the event that we are unable to generate sufficient capital and liquidity to meet our long-term needs, or if we are unable to generate capital and liquidity on terms that are favorable to us, then we may not be able to pursue development projects, acquisitions, or our other long-term strategic initiatives.
Our use of joint ventures may negatively impact our jointly-owned investments.
We have, and may continue to develop properties in, or contribute properties to, joint ventures with other persons or entities when circumstances warrant the use of these structures. Our participation in joint ventures is subject to the risks that: 
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•We could become engaged in a dispute, or have conflicts of interests, with any of our joint venture partners that might affect our ability to develop or operate a property; and
•Our joint venture partners may have different objectives than we have regarding the appropriate timing and terms of any sale or refinancing of properties.
Risks Related to the Real Estate Industry
Our net earnings available for investment or distribution to shareholders and unitholders could decrease as a result of factors related to the ownership and operation of commercial real estate, many of which are outside of our control.
Our business is subject to the risks incident to the ownership and operation of commercial real estate, many of which involve circumstances not within our control. Such risks include the following: 
•Changes in the general economic climate;
•The availability of capital on favorable terms, or at all;
•Increases in interest rates;
•Local conditions such as oversupply of property or a reduction in demand;
•Competition for tenants;
•Changes in market rental rates;
•Delay or inability to collect rent from tenants who are bankrupt, insolvent or otherwise unwilling or unable to pay;
•Difficulty in leasing or re-leasing space quickly or on favorable terms;
•Costs associated with periodically renovating, repairing and reletting rental space;
•Our ability to provide adequate maintenance and insurance on our properties;
•Our ability to control variable operating costs;
•Changes in government regulations; and
•Potential liability under, and changes in, environmental, zoning, tax and other laws.
Any one or more of these factors could result in a reduction in our net earnings available for investment or distribution to shareholders and unitholders.
Many real estate costs are fixed, even if income from properties decreases.
Our financial results depend on leasing space in our real estate to tenants on terms favorable to us. Our income and funds available for distribution to our shareholders and unitholders will decrease if a significant number of our tenants cannot meet their lease obligations to us or we are unable to lease properties on favorable terms. In addition, if a tenant does not pay its rent, we may not be able to enforce our rights as landlord without delays and we may incur substantial legal costs. Costs associated with real estate investment, such as real estate taxes, insurance, maintenance costs and our debt service payments, generally are not reduced when circumstances cause a reduction in income from the investment. As a result, we may have a reduction in our net earnings available for investment or distribution to our shareholders and unitholders.



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Our real estate development activities are subject to risks particular to development.
We continue to selectively develop new properties for rental operations in our existing markets when accretive returns are present. These development activities generally require various government and other approvals, which we may not receive. In addition, we also are subject to the following risks associated with development activities: 
•Unsuccessful development opportunities could result in direct expenses to us;
•Construction costs could increase as the result of trade disputes and tariffs on goods imported in the United States;
•Construction costs of a project may exceed original estimates, possibly making the project less profitable than originally estimated, or possibly unprofitable;
•Time required to complete the construction of a project or to lease up the completed project may be greater than originally anticipated, thereby adversely affecting our cash flow and liquidity;
•Occupancy rates and rents of a completed project may not be sufficient to make the project profitable; and
•Favorable sources to fund our development activities may not be available.
We may be unsuccessful in operating completed real estate projects.
We face the risk that the real estate projects we develop or acquire will not perform in accordance with our expectations. This risk exists because of factors such as the following: 
•Prices paid for acquired facilities are based upon a series of market judgments; and
•Costs of any improvements required to bring an acquired facility up to standards to establish the market position intended for that facility might exceed budgeted costs.
As a result, we may develop or acquire projects that are not profitable.
Our investments are concentrated in the industrial sector and our business would be adversely affected by an economic downturn in that sector.
Our investments in real estate assets are concentrated in the industrial sector. This concentration may expose us to the risk of economic downturns in this sector to a greater extent than if our business activities were more diversified.
We are exposed to the risks of defaults by tenants.
Any of our tenants may experience a downturn in their businesses that may weaken their financial condition. In the event of default or the insolvency of a significant number of our tenants, we may experience a substantial loss of rental revenue and/or delays in collecting rent and incur substantial costs in enforcing our rights as landlord. If a tenant files for bankruptcy protection, a court could allow the tenant to reject and terminate its lease with us. Our income and distributable cash flow would be adversely affected if a significant number of our tenants became unable to meet their obligations to us, became insolvent or declared bankruptcy.
We may be unable to renew leases or relet space.
When our tenants decide not to renew their leases upon their expiration, we may not be able to relet the space. Even if our tenants do renew or we are able to relet the space, the terms of renewal or reletting (including the cost of renovations, if necessary) may be less favorable than current lease terms. If we are unable to promptly renew the leases or relet the space, or if the rental rates upon such renewal or reletting are significantly lower than current rates, then our income and distributable cash flow would be adversely affected, especially if we were unable to lease a significant amount of the space vacated by tenants in our properties.


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Our insurance coverage on our properties may be inadequate.
We maintain comprehensive insurance on each of our facilities, including property, liability and environmental coverage. We believe this coverage is of the type and amount customarily obtained for real property. However, there are certain types of losses, generally of a catastrophic nature, such as hurricanes, earthquakes and floods or acts of war or terrorism that may be uninsurable or not economically insurable. We use our discretion when determining amounts, coverage limits and deductibles for insurance. These terms are determined based on retaining an acceptable level of risk at a reasonable cost. This may result in insurance coverage that in the event of a substantial loss would not be sufficient to pay the full current replacement cost of the damaged assets. Inflation, changes in building codes and ordinances, environmental considerations, acts of a governmental authority and other factors also may make it unfeasible to collect insurance proceeds to replace a facility after it has been damaged or destroyed. If an uninsured or underinsured loss occurred, we could lose both our investment in and anticipated profits and cash flow from a property, and we would continue to be obligated on any mortgage indebtedness or other obligations related to the property. We are also subject to the risk that our insurance providers may be unwilling or unable to pay our claims when made.
Our acquisition and disposition activity may lead to long-term dilution.
Our asset strategy is to increase our investment concentration in coastal Tier 1 markets. There can be no assurance that we will be able to execute our strategy or that our execution of such strategy will lead to improved results.
Acquired properties may expose us to unknown liability.
From time to time, we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, with respect to unknown liabilities. As a result, if a liability were asserted against us based upon ownership of those properties, we might have to pay substantial sums to settle or contest it, which could adversely affect our results of operations and cash flow. Unknown liabilities with respect to acquired properties might include: 

•liabilities for clean-up of undisclosed environmental contamination;
•claims by tenants, vendors or other persons against the former owners of the properties;
•liabilities incurred in the ordinary course of business; and
•claims for indemnification by general partners, directors, officers and others indemnified by the former owners of the properties.
We could be exposed to significant environmental liabilities as a result of conditions of which we currently are not aware.
As an owner and operator of real property, we may be liable under various federal, state and local laws for the costs of removal or remediation of certain hazardous substances released on or in our property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release of the hazardous substances. In addition, we could have greater difficulty in selling real estate on which hazardous substances were present or in obtaining borrowings using such real estate as collateral. It is our general policy to have Phase I environmental audits performed for all of our properties and land by qualified environmental consultants at the time of purchase. These Phase I environmental audits have not revealed any environmental liability that would have a material adverse effect on our business. However, a Phase I environmental audit does not involve invasive procedures such as soil sampling or ground water analysis, and we cannot be sure that the Phase I environmental audits did not fail to reveal a significant environmental liability or that a prior owner did not create a material environmental condition on our properties or land which has not yet been discovered. We could also incur environmental liability as a result of future uses or conditions of such real estate or changes in applicable environmental laws.

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We are exposed to the potential impacts of future climate change and climate-change related risks.
We are exposed to potential physical risks from possible future changes in climate. We have a significant investment in properties in coastal markets such as Southern California, Northern California and South Florida and have also targeted those markets for future growth. Those coastal markets have historically experienced severe weather events, such as storms and drought, as well as other natural catastrophes such as wildfires and floods. If the frequency of extreme weather and other natural events increases due to climate change, our exposure to these events could increase. We may also be adversely impacted as a real estate developer in the future by stricter energy and water efficiency standards as well as water access for our buildings.
Risks Related to Our Organization and Structure
If the General Partner were to cease to qualify as a REIT, it would lose significant tax benefits.
The General Partner intends to continue to operate so as to qualify as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"). Qualification as a REIT provides significant tax advantages to the General Partner. However, in order for the General Partner to continue to qualify as a REIT, it must satisfy numerous requirements established under highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. Satisfaction of these requirements also depends on various factual circumstances not entirely within our control. The fact that the General Partner holds its assets through the Partnership further complicates the application of the REIT requirements. Even a technical or inadvertent mistake could jeopardize the General Partner's REIT status. Although we believe that the General Partner can continue to operate so as to qualify as a REIT, we cannot offer any assurance that it will continue to do so or that legislation, new regulations, administrative interpretations or court decisions will not significantly change the qualification requirements or the federal income tax consequences of qualification. If the General Partner were to fail to qualify as a REIT in any taxable year, it would have the following effects: 
•The General Partner would not be allowed a deduction for dividends distributed to shareholders and would be subject to federal corporate income tax (and any applicable state and local income taxes) on its taxable income at regular corporate income tax rates;
•Unless the General Partner was entitled to relief under certain statutory provisions, it would be disqualified from treatment as a REIT for the four taxable years following the year during which it ceased to qualify as a REIT;
•The General Partner's net earnings available for investment or distribution to its shareholders would decrease due to the additional tax liability for the year or years involved; and
•The General Partner would no longer be required to make any distributions to shareholders in order to qualify as a REIT.
As such, the General Partner's failure to qualify as a REIT would likely have a significant adverse effect on the value of the General Partner's securities and, consequently, the Partnership's Units.
REIT distribution requirements limit the amount of cash we have available for other business purposes, including amounts that we need to fund our future capital needs.
To maintain its qualification as a REIT under the Code, the General Partner must annually distribute to its shareholders at least 90% of its REIT taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains. The General Partner intends to continue to make distributions to its shareholders to comply with the 90% distribution requirement. However, this requirement limits our ability to accumulate capital for use for other business purposes. If we do not have sufficient cash or other liquid assets to meet the distribution requirements of the General Partner, we may have to borrow funds or sell properties on adverse terms in order to meet the distribution requirements. If the General Partner fails to satisfy the distribution requirement, it would cease to qualify as a REIT.

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U.S. federal income tax treatment of REITs and investments in REITs may change in a manner that could adversely affect us or shareholders.
Legislative, regulatory or administrative changes could be enacted or promulgated at any time, either prospectively or with retroactive effect, and may adversely affect us and/or shareholders.

General Risk Factors
Our business and operations could suffer in the event of system failures or cyber security attacks.

Our systems are vulnerable to damages from any number of sources, including energy blackouts, natural disasters, terrorism, war, telecommunication failures and cyber security attacks, such as computer viruses, computer hacking, acts of vandalism or theft, malware or other malicious codes, phishing, employee error or malfeasance, or other unauthorized access. Any system failure or accident that causes interruptions in our operations could result in a material disruption to our business. We may also incur additional costs to remedy damages caused by such disruptions. Any future significant compromise or breach of our data security, whether external or internal, or misuse of customer, associate, supplier or company data, could result in significant costs, lost sales, fines, lawsuits, and damage to our reputation. Any compromise of our security could also result in a violation of applicable privacy and other laws, unauthorized access to information of ours and others, significant legal and financial exposure, damage to our reputation, loss or misuse of the information and a loss of confidence in our security measures, which could harm our business.

We have programs in place to detect, contain and respond to data security incidents. However, the ever-evolving threats mean we and our third-party service providers and vendors must continually evaluate and adapt our respective systems and processes and overall security environment. Even the most well protected information, networks, systems and facilities remain potentially vulnerable when considering the rapid pace of change in this area. There can be no assurance that our efforts to maintain the security and integrity of our systems will be effective, or that we will be able to maintain our systems free from security breaches, system compromises, misuses of data, or other operational interruptions. Accordingly, we may be unable to prevent major security breaches or entirely mitigate the risk of other system interruptions or failures.

We could also be negatively impacted by similar disruptions to the operations of our vendors or outsourced service providers.

The General Partner's stock price and trading volume may be volatile, which could result in substantial losses to its shareholders and to the Partnership's unitholders, if and when they convert their Limited Partner Units to shares of the General Partner's common stock.
The market price of the General Partner's common stock could change in ways that may or may not be related to our business, our industry or our operating performance and financial condition. In addition, the trading volume in the General Partner's common stock may fluctuate and cause significant price variations to occur. Some of the factors that could negatively affect the General Partner's share price, or result in fluctuations in the price or trading volume of the General Partner's common stock, include uncertainty in the markets, general market and economic conditions, as well as those factors described in these "Risk Factors" and in other reports that we file with the SEC.
Many of these factors are beyond our control, and we cannot predict their potential effects on the price of the General Partner's common stock. If the market price of the General Partner's common stock declines, then its shareholders and the Partnership's unitholders, respectively, may be unable to resell their shares and units upon terms that are attractive to them. We cannot assure that the market price of the General Partner's common stock will not fluctuate or decline significantly in the future. In addition, the securities markets in general may experience considerable unexpected price and volume fluctuations.

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We are subject to certain provisions that could discourage change-of-control transactions, which may reduce the likelihood of the General Partner's shareholders receiving a control premium for their shares.
Indiana anti-takeover legislation and certain provisions in our governing documents, as we discuss below, may discourage potential acquirers from pursuing a change-of-control transaction with us. As a result, the General Partner's shareholders may be less likely to receive a control premium for their shares.
Ownership Restriction. Subject to certain exceptions, the General Partner's charter provides that no person or entity may beneficially own, or be deemed to own by virtue of the applicable constructive ownership provisions of the Code, more than 9.8% (in value or by number of shares, whichever is more restrictive) of the General Partner's outstanding common stock or 9.8% in value of its outstanding stock.
Unissued Preferred Stock. The General Partner's charter permits its board of directors to classify unissued preferred stock by setting the rights and preferences of the shares at the time of issuance. This power enables the General Partner's board to adopt a shareholder rights plan, also known as a poison pill. Although the General Partner has repealed its previously existing poison pill and its current board of directors has adopted a policy not to adopt a shareholder rights plan without shareholder approval, the General Partner's board can change this policy at any time. The adoption of a poison pill would discourage a potential bidder from acquiring a significant position in the General Partner without the approval of its board.
Business-Combination Provisions of Indiana Law. The General Partner has not opted out of the business-combination provisions of the Indiana Business Corporation Law. As a result, potential bidders may have to negotiate with the General Partner's board of directors before acquiring 10% of its stock. Without securing board approval of the proposed business combination before crossing the 10% ownership threshold, a bidder would not be permitted to complete a business combination for five years after becoming a 10% shareholder. Even after the five-year period, a business combination with the significant shareholder would either be required to meet certain per share price minimums as set forth in the Indiana Business Corporation Law or to receive the approval of a majority of the disinterested shareholders.
Control-Share-Acquisition Provisions of Indiana Law. The General Partner has not opted out of the provisions of the Indiana Business Corporation Law regarding acquisitions of control shares. Therefore, those who acquire a significant block (at least 20%) of the General Partner's shares may only vote a portion of their shares unless its other shareholders vote to accord full voting rights to the acquiring person. Moreover, if the other shareholders vote to give full voting rights with respect to the control shares and the acquiring person has acquired a majority of the General Partner's outstanding shares, the other shareholders would be entitled to special dissenters' rights.
Supermajority Voting Provisions. The General Partner's charter prohibits business combinations or significant disposition transactions with a holder of 10% of its shares unless: 
•The holders of 80% of the General Partner's outstanding shares of capital stock approve the transaction;
•The transaction has been approved by three-fourths of those directors who served on the General Partner's board before the shareholder became a 10% owner; or
•The significant shareholder complies with the "fair price" provisions of the General Partner's charter.
Among the transactions with large shareholders requiring the supermajority shareholder approval are dispositions of assets with a value greater than or equal to $1,000,000 and business combinations.
Operating Partnership Provisions. The limited partnership agreement of the Partnership contains provisions that could discourage change-of-control transactions, including a requirement that holders of at least 90% of the outstanding Common Units approve: 
•Any voluntary sale, exchange, merger, consolidation or other disposition of all or substantially all of the assets of the Partnership in one or more transactions other than a disposition occurring upon a financing or refinancing of the Partnership;
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•The General Partner's merger, consolidation or other business combination with another entity unless after the transaction substantially all of the assets of the surviving entity are contributed to the Partnership in exchange for Common Units;
•The General Partner's assignment of its interests in the Partnership other than to one of its wholly owned subsidiaries; and
•Any reclassification or recapitalization or change of outstanding shares of the General Partner's common stock other than certain changes in par value, stock splits, stock dividends or combinations.
We are dependent on key personnel.
The General Partner's executive officers and other senior officers have a significant role in the success of our Company. Our ability to retain our management group or to attract suitable replacements should any members of the management group leave our Company is dependent on the competitive nature of the employment market. The loss of services from key members of the management group or a limitation in their availability could adversely impact our financial condition and cash flow. Further, such a loss could be negatively perceived in the capital markets.

Item 1B.  Unresolved Staff Comments
We have no unresolved comments with the SEC staff regarding our periodic or current reports under the Exchange Act.
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Item 2.  Properties
Product Review
As of December 31, 2020, we own interests in 537 primarily industrial properties encompassing 159.6 million net rentable square feet (including 40 unconsolidated joint venture in-service properties with 11.5 million square feet, 16 consolidated properties under development with 6.9 million square feet and one unconsolidated joint venture property under development with 517,000 square feet).
Industrial Properties: We own interests in 534 industrial properties encompassing 159.4 million square feet (99.9% of our total square feet). These properties are primarily logistics facilities with clear ceiling heights of 28 feet or more.
Non-reportable: We own interests in three buildings, which are not industrial properties and are not presented within our reportable segments, totaling 211,000 square feet (0.1% of our total square feet).
See Consolidated Financial Statement Schedule III - Real Estate Properties and Accumulated Depreciation for a detailed listing of the Company’s properties and related encumbrances.
Land: We own, including through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), 1,000 acres of land and control an additional 800 acres through purchase options. Over 500 acres of the 600 acres of land that we directly own, are intended to be used for the development of industrial properties and can support over 7.3 million square feet of industrial developments. All of our approximately 400 acres of land held by unconsolidated joint ventures, are also intended to be used for the development of industrial properties. We directly own approximately 100 acres of land that we do not consider strategic and that will be sold to the extent that market conditions permit us to achieve what we believe to be acceptable sale prices.
Property Descriptions
The following tables represent the geographic highlights of consolidated and unconsolidated joint venture in-service properties in our primary markets.














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Consolidated Properties
 Square FeetAnnual Net
Effective
Rent (1)		Annual Net
Effective
Rent per Square Foot (2)		Percent of
Annual  Net
Effective
Rent
 IndustrialNon-ReportableOverallPercent of Overall
Primary Market
Southern California12,555,202 — 12,555,202 8.9 %$81,524,024 $6.49 11.2 %
New Jersey7,361,852 — 7,361,852 5.2 %72,296,547 9.82 9.9 %
South Florida8,525,928 — 8,525,928 6.1 %66,587,602 7.90 9.1 %
Chicago15,065,460 — 15,065,460 10.7 %64,280,294 4.46 8.8 %
Atlanta12,380,606 — 12,380,606 8.8 %49,290,819 4.06 6.8 %
Dallas10,732,386 — 10,732,386 7.6 %41,813,080 3.90 5.7 %
Cincinnati9,114,047 91,843 9,205,890 6.6 %32,381,691 3.80 4.5 %
Indianapolis9,107,683 — 9,107,683 6.5 %32,262,732 3.60 4.4 %
Houston6,801,911 — 6,801,911 4.8 %32,229,309 5.20 4.4 %
Savannah7,329,816 — 7,329,816 5.2 %31,559,814 4.31 4.3 %
Pennsylvania5,270,424 — 5,270,424 3.7 %29,502,428 5.60 4.1 %
Minneapolis-St. Paul5,143,303 — 5,143,303 3.7 %26,326,139 5.42 3.6 %
Central Florida4,332,233 — 4,332,233 3.1 %22,555,651 5.43 3.1 %
DC-Baltimore3,282,696 — 3,282,696 2.3 %22,463,762 6.90 3.1 %
St. Louis5,181,945 — 5,181,945 3.7 %22,120,057 4.27 3.0 %
Seattle3,519,794 — 3,519,794 2.5 %22,109,078 7.31 3.0 %
Nashville3,645,368 — 3,645,368 2.6 %20,635,215 5.78 2.8 %
Columbus5,319,877 — 5,319,877 3.8 %19,953,489 3.75 2.8 %
Raleigh3,147,350 — 3,147,350 2.2 %19,868,866 6.33 2.7 %
Northern California2,693,432 — 2,693,432 1.9 %16,081,354 6.50 2.2 %
Other (3)— 119,030 119,030 0.1 %3,487,188 29.30 0.5 %
Total140,511,313 210,873 140,722,186 100.0 %$729,329,139 $5.32 100.0 %
Percent of Overall99.9 %0.1 %100.0 %
Annual Net Effective Rent per Square Foot (2)$5.30 $22.31 $5.32 
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Unconsolidated Joint Venture Properties
 Square FeetAnnual Net
Effective
Rent (1)		Annual Net
Effective
Rent per Square Foot (2)		Percent of
Annual  Net
Effective
Rent
 IndustrialPercent of
Overall
Primary Market
Dallas6,047,818 52.8 %$27,614,035 $4.68 56.5 %
Indianapolis4,850,430 42.3 %18,963,269 3.91 38.8 %
Columbus357,504 3.1 %1,419,394 3.97 2.9 %
Cincinnati57,886 0.5 %398,667 6.89 0.8 %
Other (3)152,944 1.3 %472,951 3.09 1.0 %
Total11,466,582 100.0 %$48,868,316 $4.32 100.0 %
Percent of Overall100.0 %
Annual Net Effective Rent per Square Foot (2)$4.32 
 
 Percent Leased
 Consolidated PropertiesUnconsolidated Properties
 IndustrialNon-ReportableOverallIndustrialOverall
Primary Market
Southern California100.0 %— 100.0 %— — 
New Jersey100.0 %— 100.0 %— — 
South Florida98.8 %— 98.8 %— — 
Chicago95.6 %— 95.6 %— — 
Atlanta98.0 %— 98.0 %— — 
Dallas100.0 %— 100.0 %97.5 %97.5 %
Cincinnati92.6 %92.8 %92.6 %100.0 %100.0 %
Indianapolis98.5 %— 98.5 %100.0 %100.0 %
Houston91.1 %— 91.1 %— — 
Savannah100.0 %— 100.0 %— — 
Pennsylvania100.0 %— 100.0 %— — 
Minneapolis-St. Paul94.4 %— 94.4 %— — 
Central Florida95.9 %— 95.9 %— — 
DC-Baltimore99.2 %— 99.2 %— — 
St. Louis100.0 %— 100.0 %— — 
Seattle85.9 %— 85.9 %— — 
Nashville97.9 %— 97.9 %— — 
Columbus100.0 %— 100.0 %100.0 %100.0 %
Raleigh99.7 %— 99.7 %— — 
Northern California91.9 %— 91.9 %— — 
Other (3)— 100.0 %100.0 %100.0 %100.0 %
Total97.4 %96.8 %97.4 %98.7 %98.7 %
(1)Represents the average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants as of December 31, 2020, excluding amounts paid by tenants as reimbursement for operating expenses. Unconsolidated joint venture properties are shown at 100% of square feet and net effective rents, without regard to our ownership percentage.
(2)Annual net effective rent per leased square foot.
(3)Represents properties not located in our primary markets.
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Item 3.  Legal Proceedings
We are not subject to any pending legal proceedings, other than routine litigation arising in the ordinary course of business. We do not expect these legal proceedings to have a material adverse effect on our financial condition, results of operations, or liquidity.

Item 4.  Mine Safety Disclosures
Not applicable.
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PART II

Item 5.  Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market Information and Holders
The General Partner's common stock is listed for trading on the NYSE under the symbol "DRE." There is no established trading market for the Partnership's Common Units. As of February 17, 2021, there were 4,656 record holders of the General Partner's common stock and 79 record holders of the Partnership's Common Units. 

Stock Performance Graph
The following line graph compares the change in the General Partner's cumulative total shareholders' return on shares of its common stock to the cumulative total return of the Standard and Poor's 500 Stock Index ("S&P 500") and the FTSE NAREIT Equity REITs Index ("NAREIT Index") from December 31, 2015 to December 31, 2020. The graph assumes an initial investment of $100 in the common stock of the General Partner and each of the indices on December 31, 2015, and the reinvestment of all dividends. The performance graph is not necessarily indicative of future performance.

dre-20201231_g2.jpg

This graph and the accompanying text are not “soliciting material,” are not deemed filed with the SEC and are not to be incorporated by reference in any filing by the company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof and irrespective of any general incorporation language in any such filing.





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Tax Characterization of Dividends
A summary of the tax characterization of the dividends paid per common share of the General Partner for the years ended December 31, 2020, 2019 and 2018 follows:
202020192018
Total dividends paid per share$0.96 $0.88 $0.815 
Ordinary income74.6 %80.7 %78.4 %
Capital gains25.4 %19.3 %21.6 %
100.0 %100.0 %100.0 %
See Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources - Uses of Liquidity - Dividend and Distribution Requirements", below, for more information on our dividend policy.
Sales of Unregistered Securities
The General Partner did not sell any of its securities during the year ended December 31, 2020 that were not registered under the Securities Act.
Issuer Purchases of Equity Securities
From time to time, we may repurchase our securities under a repurchase program that initially was approved by the General Partner's board of directors and publicly announced in October 2001 (the "Repurchase Program").

During 2020 we did not repurchase any equity securities under the Repurchase Program.

On January 27, 2021 the General Partner's board of directors adopted a resolution that amended and restated the Repurchase Program and delegated authority to management to repurchase a maximum of $300.0 million of the General Partner's common shares, $750.0 million of the Partnership's debt securities and $500.0 million of the General Partner's preferred shares, subject to the prior notification of the Chairperson of the finance committee of the board of directors of planned repurchases within these limits.

Item 6.  Selected Financial Data    

None.
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Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the Consolidated Financial Statements included in Item 15. Exhibits and Financial Statement Schedules of this report and the matters described under Item 1A. Risk Factors.
A discussion regarding our financial condition and results of operations for 2020 compared to 2019 is under the Results of Operations section below. Our financial condition for 2018 and results of operations for 2019 compared to 2018 can be found under Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, which is incorporated herein by this reference to our Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on February 25, 2020, and is available on the SEC’s website at www.sec.gov and the Investor Relations section of our website at www.dukerealty.com.
Business Overview
The General Partner and Partnership collectively specialize in the ownership, management and development of industrial real estate. The General Partner is a self-administered and self-managed REIT that began operations in 1986 and is the sole general partner of the Partnership. The Partnership is a limited partnership formed in 1993, at which time all of the properties and related assets and liabilities of the General Partner, as well as proceeds from a secondary offering of the General Partner's common shares, were contributed to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972. We operate the General Partner and the Partnership as one enterprise, and therefore, our discussion and analysis refers to the General Partner and its consolidated subsidiaries, including the Partnership, collectively.
Our business operations primarily consist of two reportable operating segments: rental operations of industrial properties and service operations. Rental operations of industrial properties represent the ownership and development of industrial properties and is the primary component of our revenues and earnings. Service operations generate additional revenues from providing various real estate services primarily relating to development, construction management and property management services to customers, unconsolidated joint ventures and third-party owners.
Our overall strategy is to increase our investment in quality industrial properties primarily through development, on both a speculative and build-to-suit basis, supplemented with acquisitions in the markets we believe have the highest growth potential.
At December 31, 2020, we: 
•Owned or jointly controlled 537 primarily industrial properties, of which 520 properties with 152.2 million square feet were in service and 17 properties with 7.4 million square feet were under development. The 520 in-service properties were comprised of 480 consolidated properties with 140.7 million square feet and 40 unconsolidated joint venture properties with 11.5 million square feet. The 17 properties under development consisted of 16 consolidated properties with 6.9 million square feet and one unconsolidated joint venture property with 517,000 square feet.
•Owned directly, or through ownership interests in unconsolidated joint ventures (with acreage not adjusted for our percentage ownership interest), approximately 1,000 acres of land and controlled approximately 800 acres through purchase options.
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Nationwide demand for industrial properties continues to be strong in the current economic environment as the COVID-19 pandemic has accelerated both consumer acceptance of e-commerce and the requirements of many retailers to increase inventory levels. Our operational focus is to maintain occupancy at high levels and to focus on rental rate growth. The occupancy of our consolidated industrial portfolio increased to 97.4% at December 31, 2020 as compared to 96.6% at December 31, 2019. Our annual net effective rents for both renewals and new second generation leases, on a combined basis, for consolidated properties grew 28.2% in 2020 compared to 2019. In the current environment of rising rental rates for industrial properties in many of the markets in which we operate, we believe there is potential for continued future rental rate growth to the extent we are able to renew or backfill expiring leases and maintain high levels of occupancy.
Operational Strategy
Our operational focus is to drive profitability by maximizing cash from operations as well as NAREIT FFO through (i) maintaining property occupancy, increasing rental rates and prioritizing timely collection of monthly rental payments, while also keeping lease-related capital costs contained, by effectively managing our portfolio of existing properties; (ii) selectively developing new build-to-suit, substantially pre-leased and, in select markets, speculative development projects; and (iii) providing a full line of real estate services to our tenants and to third parties.
Asset Strategy
Our strategic objectives include (i) increasing our investment in quality industrial properties through development, including facilities with sustainable design features that will meet customer needs; (ii) acquiring properties primarily in coastal Tier 1 markets which we believe provide the best potential for future rental growth; and (iii) maintaining an optimal land inventory through selected strategic land acquisitions and new development activity. We are continuing to execute our asset strategy through a disciplined approach by identifying development opportunities, identifying select acquisition targets where the asset quality and pricing meet our objectives and continually evaluating our portfolio for disposition by regularly identifying assets that no longer meet our long-term objectives.
Capital Strategy
Our capital strategy is to maintain a strong balance sheet by actively managing the components of our capital structure in coordination with the execution of our overall operational and asset strategies. We are focused on maintaining our current investment grade ratings from our credit rating agencies. As of December 31, 2020, our senior unsecured notes have been assigned a rating of Baa1 by Moody's Investors Services and BBB+ by Standard & Poor's Ratings Group and we are focused on maintaining such ratings in order to maintain access to liquidity. A securities rating is not a recommendation to buy, sell, or hold securities and is subject to revision or withdrawal at any time by the rating organization.
In support of our capital strategy, we employ an asset disposition program to sell certain real estate assets, which generate proceeds that can be recycled into new property investments that better fit our growth objectives or otherwise manage our capital structure.
We continue to focus on maintaining a balanced and flexible capital structure which includes: (i) extending and sequencing the maturity dates of our outstanding debt obligations; (ii) borrowing primarily at fixed rates; and (iii) issuing common equity as needed to maintain appropriate leverage parameters or support significant strategic developments or acquisitions. With our successes to date and continued focus on maintaining a strong balance sheet, we expect to be in a position to be opportunistic in our investment opportunities.
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Environmental, Social and Governance ("ESG") Strategy
We are focused on promoting our growth in a sustainable way, one that succeeds by delivering long-term value for our stakeholders. As part of our vision to continually set the standard for maximizing stakeholder value, we have a long-standing commitment to sustainable practices in environmental, social and corporate governance initiatives. On December 17, 2019, we adopted a Sustainable Development Policy intended to increase the operational efficiency of our buildings and promote sustainable design principles. We are committed to integrating innovative, sustainable building design features in alignment with U.S. Green Building Council’s® Leadership in Energy and Environmental Design (or LEED®), including constructing to LEED® criteria and achieving certification in all new developments where feasible. While we do not control most of the utility usage at our properties, we have been partnering with a third party data management provider since 2018 in order to help monitor and manage the utility usage that we do control. In 2018, we also became a member of GRESB, a leading provider of real estate ESG benchmarking and performance assessments. Since joining, our GRESB score has steadily increased, evidencing our commitment and continued progress. We expect to continue participating in the GRESB benchmarking assessments.

In October 2018, the Sustainability Accounting Standards Board issued the Real Estate Sustainability Accounting Standards. The standards are intended to provide a minimum set of sustainability metrics for disclosure in SEC filings, such as this Form 10-K. We understand the importance of reporting comparable, consistent and financially material sustainability metrics. Below is a chart showing our information for the applicable metrics.
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TopicAccounting MetricCodeOur Information
Energy ManagementDescription of how building energy management considerations are integrated into property investment analysis and operational strategy
IF-RE-130a.5We integrate energy usage reduction measures on all new developments, incorporating LEED certification requirements and applicable aspects of our own sustainability policies/programs. These measures include energy modeling, high efficiency equipment (HVAC and lighting), and climate zone appropriate design factors. We have an ongoing lighting retrofit program, replacing outdated light fixtures with LED high efficiency fixtures. In 2020 we partnered with solar developers to increase the number of buildings in our portfolio with rooftop solar panels.
Water ManagementDescription of water management risks and discussion of strategies and practices to mitigate those risks



IF-RE-140a.4
We integrate water reduction measures on all new developments and renovation, incorporating LEED certification or applicable aspects of our own sustainability policies/programs. These measures include the use of WaterSense® fixtures for all domestic usage, xeriscaping to minimize or eliminate the need for irrigation, and water usage monitoring, where available and appropriate.  

Climate Change AdaptationArea of properties located in 100-year flood zones, by property subsectorIF-RE-450a.110.8 million square feet.

In January 2021, we issued $450.0 million of senior unsecured notes with a stated interest rate of 1.75%, which will mature on February 1, 2031. These notes are our second green bond issuance with the first issuance completed in November 2019. The net proceeds will be used to finance future or refinance recently completed “eligible green projects”. These projects may include green buildings, energy efficiency projects, sustainable water and wastewater management systems, renewable energy projects, clean transportation solutions and pollution prevention and control.
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In addition to our environmental initiatives, we are committed to fair compensation, fostering a dynamic and balanced work environment and providing employees with developmental opportunities to perform well and derive satisfaction from their work. We encourage our associates to participate in volunteer and community activities and support those who do participate by providing each associate with two paid community days per year. We also have charitable contribution programs, such as our dollars for doers program (matching dollars for volunteer hours spent) and our matching gifts program (matching dollars for employee donations to charities). In addition, we partner with various charitable organizations, including the American Red Cross since 2017. We maintain a formal and structured diversity, equity and inclusion program. We have increased diversity within our board of directors and 50% of the Independent Directors of the board are female or people of color. We implemented a Vendor Code of Conduct that outlines our expectations and standards for how our vendors operate while doing business on our behalf. Through all of these initiatives and others, we endeavor to make a positive impact on the communities in which we conduct business.

We strive to maintain an effective corporate governance structure and comply with applicable laws, rules, regulations and policies. Further, we publish Corporate Responsibility Reports that formally communicate our commitments and leadership around ESG issues. Please see “Item 1-Corporate Governance” for more information regarding our governance initiatives.

Through all of our environmental, social and governance efforts, we demonstrate that operating and developing commercial real estate can be conducted with a conscious regard for the environment and community, while also benefiting our investors, employees, tenants and the communities in which we operate.

Results of Operations
A summary of our operating results and property statistics for each of the years in the three-year period ended December 31, 2020, is as follows (in thousands, except number of properties and per share or per Common Unit data):
202020192018
Rental and related revenue from continuing operations$929,194 $855,833 $785,319 
General contractor and service fee revenue64,004 117,926 162,551 
Operating income417,846 524,761 460,356 
General Partner
Net income attributable to common shareholders$299,915 $428,972 $383,729 
Weighted average common shares outstanding370,057 362,234 357,569 
Weighted average common shares and potential dilutive securities374,156 367,339 363,297 
Partnership
Net income attributable to common unitholders$302,578 $432,650 $387,257 
Weighted average Common Units outstanding373,360 365,352 360,859 
Weighted average Common Units and potential dilutive securities374,156 367,339 363,297 
General Partner and Partnership
Basic income per common share or Common Unit:
Continuing operations$0.81 $1.18 $1.06 
Discontinued operations$— $— $0.01 
Diluted income per common share or Common Unit:
Continuing operations$0.80 $1.18 $1.06 
Discontinued operations$— $— $0.01 
Number of in-service consolidated properties at end of year480459462
In-service consolidated square footage at end of year140,722135,451133,047
Number of in-service unconsolidated joint venture properties at end of year403839
In-service unconsolidated joint venture square footage at end of year11,46710,97611,101
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Year in Review
The United States economy in 2020 experienced an unprecedented downturn as a result of the COVID-19 pandemic with the gross domestic product declining by 3.5%. The recession was caused by dramatic changes in consumer behavior linked to business shutdowns, travel restrictions, and social distancing during the pandemic. The magnitude of the declines in gross domestic product and employment in the spring was unprecedented. Since then, economic activity and job growth have begun to recover as parts of the economy reopened, bolstered by the initial dissemination of vaccines and government stimulus, but remain well below pre-pandemic levels. The 10-year treasury yield trended down throughout the year fluctuating from 0.5% to 1.9% and ending the year at 0.9%, down from 1.9% at the end of 2019. While the economy has declined overall during 2020, the industrial real estate sector has been one of the most resilient sectors during the pandemic, which has been largely driven by e-commerce demand and additional demand from suppliers to drive up safety stock. We continued to pursue quality industrial assets in coastal Tier 1 markets during 2020. We resumed speculative development projects in the second half of the year and continued to lease up the speculative space. Despite the global crisis, we were able to execute our asset and capital strategies for the year and had a successful 2020.
The following table shows a reconciliation of net income attributable to common shareholders or common unitholders to the calculation of funds from operations ("FFO") attributable to common shareholders or common unitholders for the years ended December 31, 2020, 2019 and 2018, respectively (in thousands):
202020192018
Net income attributable to common shareholders of the General Partner$299,915 $428,972 $383,729 
Add back: Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership2,663 3,678 3,528 
Net income attributable to common unitholders of the Partnership 302,578 432,650 387,257 
Adjustments:
Depreciation and amortization353,013 327,223 312,217 
Company share of unconsolidated joint venture depreciation and amortization 9,265 10,083 9,146 
Partnership share of gains on property sales(127,811)(235,098)(208,780)
Gains on land sales(10,458)(7,445)(10,334)
Income tax (benefit) expense not allocable to FFO(5,112)8,686 8,828 
Impairment charges 5,626 — — 
Gains on sales of real estate assets—share of unconsolidated joint ventures(822)(21,239)(12,094)
        Impairment charges - unconsolidated joint venture— — 2,214 
FFO attributable to common unitholders of the Partnership (1)$526,279 $514,860 $488,454 
Additional General Partner Adjustments:
Net income attributable to noncontrolling interests - common limited partnership interests in the Partnership(2,663)(3,678)(3,528)
        Noncontrolling interest share of adjustments(1,979)(702)(923)
FFO attributable to common shareholders of the General Partner (1)$521,637 $510,480 $484,003 

(1) FFO is a non-GAAP measure used in the real estate industry and is computed in accordance with standards established by the National Association of Real Estate Investment Trusts ("NAREIT"). NAREIT FFO is used by industry analysts and investors as a supplemental operating performance measure of a REIT. NAREIT FFO is calculated as net income attributable to the common shareholders of the General Partner in accordance with GAAP excluding depreciation and amortization related to real estate, gains and losses on sales of real estate assets (including real estate assets incidental to our business), gains and losses from change in control, impairment charges related to real estate assets (including real estate assets incidental to our business) and similar adjustments for unconsolidated partnerships and joint ventures, all net of related taxes.
The most comparable GAAP measure to NAREIT FFO is net income attributable to common shareholders or common unitholders.  Management believes it is a useful indicator of consolidated operating performance, which improves the understanding of operating results of REITs among the investing public, makes comparisons of REIT operating results more meaningful and enables investors and analysts to readily identify the operating results of the long-term assets that form the core of a REIT's activity.
Net income attributable to the common shareholders of the General Partner for the year ended December 31, 2020, was $299.9 million, compared to net income of $429.0 million for the year ended December 31, 2019. Net income attributable to the common unitholders of the Partnership for the year ended December 31, 2020, was $302.6
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million, compared to net income of $432.7 million for the year ended December 31, 2019. The decrease in net income in 2020 for the General Partner and the Partnership, when compared to 2019, was primarily the result of lower gains on property sales and higher losses on debt extinguishment during 2020.
NAREIT FFO attributable to common shareholders of the General Partner totaled $521.6 million for the year ended December 31, 2020, compared to $510.5 million for 2019. NAREIT FFO attributable to common unitholders of the Partnership totaled $526.3 million for the year ended December 31, 2020, compared to $514.9 million for 2019. The increase to NAREIT FFO from 2019 for the General Partner and the Partnership was primarily driven by improved occupancy, rental rate growth and new developments being placed into service and leased up, partially offset by debt extinguishment costs recognized during 2020.
In accordance with our strategic plan, we continue to increase our investment in high-quality industrial properties, with build-to-suit developments across all of our markets and most of our speculative development focused in the markets we believe have the best long-term growth potential. Additionally, we continued to maintain high occupancy levels through 2020 and quickly lease a significant portion of our speculative development projects. Highlights of our 2020 strategic and operational activities are as follows: 
•We generated $336.3 million of total net cash proceeds from the disposition of seven consolidated buildings and 157 acres of wholly owned undeveloped land.
•We acquired ten industrial properties during the year ended December 31, 2020 with a total asset value of $424.9 million.
•We started new development projects with expected total costs of $795.6 million, which included $78.0 million of expected total costs for development projects started within two unconsolidated joint ventures. The development projects started in 2020 were, in aggregate, 62.0% leased at December 31, 2020.
•We placed 18 newly completed consolidated development projects in service, which totaled 6.8 million square feet with total costs of $693.8 million at December 31, 2020. These properties were 93.7% leased at December 31, 2020. Two newly completed projects owned by unconsolidated joint ventures were also placed in service, totaling 491,000 square feet with total costs of $27.6 million (square feet and costs shown at 100%), during 2020. These properties were 100% leased at December 31, 2020.
•The total estimated cost of our properties under construction at December 31, 2020, with costs for unconsolidated properties shown at 100%, totaled $1.10 billion, with $690.1 million of such costs already incurred. The total estimated cost for the one unconsolidated joint venture property under construction at December 31, 2020 was $57.0 million, with $22.6 million of such costs already incurred. The consolidated properties under construction were 64.5% pre-leased, while the unconsolidated joint venture property under construction was 100% pre-leased.
•Income from continuing operations before income taxes was $297.5 million and $440.9 million for the twelve months ended December 31, 2020 and 2019, respectively.
•Same-property net operating income, on a cash basis, as defined hereafter under "Supplemental Performance Measures", increased by 5.0% for the twelve months ended December 31, 2020, as compared to the same period in 2019.
•As the result of leasing up space in speculative developments throughout 2020, the percentage of total square feet leased for our in-service portfolio of consolidated properties increased from 96.6% at December 31, 2019 to 97.4% at December 31, 2020.
•Total leasing activity for our consolidated properties totaled 25.5 million square feet in 2020 compared to 28.7 million square feet in 2019.
•Total leasing activity for our consolidated and unconsolidated joint venture properties in 2020 included 6.1 million and 1.1 million, respectively, square feet of lease renewals (excludes early renewals and short term renewals), which represented 65.6% and 86.8%, respectively, retention rates on a square foot basis. New
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second generation and renewal leases, on a combined basis, executed for consolidated and unconsolidated joint venture properties during the year resulted in 28.2% and 33.8%, respectively, increases to net effective rents ("net effective rents" is defined hereafter in the "Key Performance Indicators" section) when compared to the previous leases of the same space.
We utilized the capital generated from dispositions during the year to reduce debt and to fund our development activities. Highlights of our key financing activities are as follows:

•During 2020, the General Partner issued 4.6 million common shares under its at the market ("ATM") equity program, generating gross proceeds of $177.1 million and, after deducting commissions and other costs, net proceeds of $175.0 million.
•In February 2020, we issued $325.0 million of senior unsecured notes that bear interest at a stated interest rate of 3.05%, have an effective interest rate of 3.19%, and mature on March 1, 2050. Proceeds from the unsecured notes offering were primarily used to repay the $300.0 million of senior unsecured notes bearing a stated interest rate of 4.38% and with a scheduled maturity of 2022. In connection with the early redemption of these notes, we recognized a loss of $17.8 million consisting of a prepayment premium and the write-off of unamortized deferred financing costs.
•In June 2020, we issued $350.0 million of senior unsecured notes, which bear interest at a stated interest rate of 1.75%, have an effective interest rate of 1.85% and mature on July 1, 2030. Proceeds from the unsecured notes offering were primarily used to repurchase and cancel $216.3 million of 3.88% senior unsecured notes due 2022 pursuant to a tender offer completed by the Partnership in June 2020. In connection with the early cancellation of these notes, we recognized a loss of $15.1 million consisting of a prepayment premium and the write-off of unamortized deferred financing costs.

•During 2020, we repaid one fixed rate secured loan, totaling $9.0 million, which had a stated interest rate of 5.61%.
COVID-19
During 2020, in response to the COVID-19 pandemic, we have made various changes to our operations in order to support the health and safety of our associates and the communities in which we operate. Throughout the pandemic, accelerated e-commerce demand drove strong leasing activity, while the pandemic also negatively impacted a relatively small portion of our tenant base that operate in lines of business, such as event planning, that were most acutely impacted by COVID-19. Through December 31, 2020, we executed deferral agreements with certain customers that allowed for $7.4 million of total scheduled rental payments to be deferred and repaid in future periods. The substantial majority of these agreements were short term in nature and required repayment of the deferred amounts within twelve months of their execution. We have collected all amounts due under such short term rent deferral agreements through the end of 2020. We temporarily paused our acquisition, disposition and development activities at the onset of the pandemic but such activities were resumed at an accelerated pace during the second half of the year.

The pandemic's impact on the overall global economy is continuing and the ultimate impact cannot be predicted at this time. Please see Part I, Item 1A, "Risk Factors" for additional information about the potential impacts the pandemic may have on our business and results of operations.

Supplemental Performance Measures

In addition to NAREIT FFO we use (i) Property Level Net Operating Income - Cash Basis ("PNOI") and (ii) Same-Property Net Operating Income - Cash Basis ("SPNOI") as supplemental non-GAAP performance measures. Management believes that the use of PNOI and SPNOI combined with net income (which remains the primary measure of performance), improves the understanding of operating results of REITs among the investing public and makes comparisons of REIT operating results more meaningful. The most comparable GAAP measure to PNOI and SPNOI is income from continuing operations before income taxes.
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PNOI and SPNOI each exclude expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes, or any other measures derived in accordance with GAAP. Furthermore, these metrics may not be comparable to other similarly titled measures of other companies.

Property Level Net Operating Income - Cash Basis
PNOI is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items. As a performance metric that consists of only the cash-based revenues and expenses directly related to ongoing real estate rental operations, PNOI is narrower in scope than NAREIT FFO.
PNOI, as we calculate it, may not be directly comparable to similarly titled, but differently calculated, measures for other REITs. We believe that PNOI is another useful supplemental performance measure, as it is an input in many REIT valuation models and it provides a means by which to evaluate the performance of the properties within our Rental Operations segments. The operations of our industrial properties, as well as our non-reportable Rental Operations (our residual non-industrial properties that have not yet been sold, referred to throughout as "non-reportable"), are collectively referred to as "Rental Operations."
The major factors influencing PNOI are occupancy levels, acquisitions and sales, development properties that achieve stabilized operations, rental rate increases or decreases, and the recoverability of operating expenses.
Note 10 to the consolidated financial statements included in Part IV, Item 15 of this Report shows a calculation of our PNOI for the years ended December 31, 2020, 2019 and 2018 and provides a reconciliation of PNOI for our Rental Operations segments to income from continuing operations before income taxes.
Same-Property Net Operating Income - Cash Basis
We also evaluate the performance of our properties, including our share of properties we jointly control, on a "same-property" basis, using a metric referred to as SPNOI. We view SPNOI as a useful supplemental performance measure because it improves comparability between periods by eliminating the effects of changes in the composition of our portfolio.
On an individual property basis, SPNOI is generally computed in a consistent manner as PNOI.
We define our "same-property" population once a year at the beginning of the current calendar year and include buildings that were stabilized (the term "stabilized" means properties that have reached 90% leased or that have been in-service for at least one year since development completion or acquisition) as of January 1 of the prior calendar year. The "same-property" pool is also adjusted to remove properties that were sold subsequent to the beginning of the current calendar year. As such, the "same-property" population for the period ended December 31, 2020 includes all properties that we owned or jointly controlled at January 1, 2020, which had both been owned or jointly controlled and had reached stabilization by January 1, 2019, and have not been sold.

A reconciliation of income from continuing operations before income taxes to SPNOI is presented as follows (in thousands, except percentage data):
Three Months Ended December 31,PercentTwelve Months Ended December 31,Percent
20202019Change20202019Change
Income from continuing operations before income taxes$166,418 $89,664 $297,537 $440,885 
  Share of SPNOI from unconsolidated joint ventures4,868 4,661 19,107 18,214 
  PNOI excluded from the "same-property" population(26,785)(11,333)(71,160)(33,395)
  Earnings from Service Operations(1,218)(937)(6,028)(6,360)
  Rental Operations revenues and expenses excluded from PNOI(14,924)(11,778)(44,002)(57,546)
  Non-Segment Items24,133 77,337 410,541 215,218 
SPNOI$152,492 $147,614 3.3 %$605,995 $577,016 5.0 %
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The composition of the line items titled "Rental Operations revenues and expenses excluded from PNOI" and "Non-Segment Items" from the table above are shown in greater detail in Note 10 to the consolidated financial statements included in Part IV, Item 15 of this Report.

We believe that the factors that impact SPNOI are generally the same as those that impact PNOI. The following table details the number of properties, square feet, average commencement occupancy and average cash rental rate for the properties included in SPNOI for the respective periods:
Three Months Ended December 31,Twelve Months Ended December 31,
2020201920202019
Number of properties451451451451
Square feet (in thousands) (1)125,370125,370125,370125,370
Average commencement occupancy percentage (2)98.5%98.3%98.5%98.1%
Average rental rate - cash basis (3)$4.90$4.75$4.83$4.69
(1) Includes the total square feet of the consolidated properties that are in the "same-property" population as well as 4.9 million square feet of space for unconsolidated joint ventures, which represents our ratable share of the 9.8 million total square feet of space for buildings owned by unconsolidated joint ventures that are in the "same-property" population.
(2) Commencement occupancy represents the percentage of total square feet where the leases have commenced.
(3) Represents the average annualized contractual rent per square foot for the three and twelve months ended December 31, 2020 and 2019 for tenants in occupancy in properties in the "same-property" population. Cash rent does not include the tenant's obligation to pay property operating expenses and real estate taxes. If a tenant was within a free rent period, its rent would equal zero for purposes of this metric.

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Key Performance Indicators
Our operating results depend primarily upon rental income from our Rental Operations. The following discussion highlights the metrics that drive the performance of our Rental Operations, which management uses to operate the business, and that we consider to be critical drivers of future revenues.
Occupancy Analysis
Occupancy is an important metric for management and our investors for understanding our financial performance. Our ability to maintain high occupancy rates is among the principal drivers of maintaining and increasing rental revenue. The following table sets forth percent leased and average net effective rent information regarding our in-service portfolio of rental properties at December 31, 2020 and 2019, respectively:
 Total Square Feet
(in thousands)		Percent of
Total Square Feet		Percent Leased*Average Annual Net Effective Rent**
Type20202019202020192020201920202019
Industrial140,511 135,240 99.9 %99.8 %97.4 %96.7 %$5.30$5.00
Non-reportable Rental Operations211 211 0.1 %0.2 %96.8 %80.5 %$22.31$24.29
Total Consolidated140,722 135,451 100.0 %100.0 %97.4 %96.6 %$5.32$5.03
Unconsolidated Joint Ventures11,467 10,976 98.7 %96.3 %$4.32$4.21
Total Including Unconsolidated Joint Ventures152,189 146,427 97.5 %96.6 %
* Represents the percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced.
** Average annual net effective rent represents average annual base rental payments per leased square foot, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. This amount excludes additional amounts paid by tenants as reimbursement for operating expenses.
The increase in occupancy at December 31, 2020 within our industrial portfolio, when compared to December 31, 2019, primarily resulted from leasing up recently delivered speculative developments while renewing or backfilling existing leases to maintain the occupancy level within our existing base of properties.
Vacancy Activity
The following table sets forth vacancy activity, shown in square feet, from our in-service rental properties for the year ended December 31, 2020 (in thousands):
Consolidated PropertiesUnconsolidated Joint Venture PropertiesTotal Including Unconsolidated Joint Venture Properties
Vacant square feet at December 31, 20194,540 406 4,946 
  Vacant space in acquisitions495 — 495 
  Vacant space in completed developments1,138 — 1,138 
  Vacant space in dispositions(978)— (978)
  Expirations4,360 469 4,829 
  Early lease terminations2,610 — 2,610 
  Property structural changes/other15 — 15 
  Leasing of previously vacant space(8,464)(725)(9,189)
Vacant square feet at December 31, 20203,716 150 3,866 
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Total Leasing Activity

Our ability to maintain and improve occupancy and net effective rents primarily depends upon our continuing ability to lease vacant space. The volume and quality of our leasing activity is closely scrutinized by management in operation of the business and provides useful information regarding future performance. The initial leasing of development projects or vacant space in acquired properties is referred to as first generation lease activity. The leasing of such space that we have previously held under lease to a tenant is referred to as second generation lease activity. Second generation lease activity may be in the form of renewals of existing leases or new second generation leases of previously leased space. The total leasing activity for our consolidated and unconsolidated industrial rental properties, expressed in square feet of leases signed, is as follows for the years ended December 31, 2020 and 2019 (in thousands):
20202019
New Leasing Activity - First Generation 7,917 9,779 
New Leasing Activity - Second Generation4,7973,639 
Renewal Leasing Activity 6,147 10,916 
Early Renewal Leasing Activity *2,671 2,076 
Short-Term New Leasing Activity **1,889 989 
Short-Term Renewal Leasing Activity **2,077 1,317 
Non-Reportable Rental Operations Leasing Activity36 13 
Total Consolidated Leasing Activity25,534 28,729 
Unconsolidated Joint Venture Leasing Activity3,154 2,384 
Total Including Unconsolidated Joint Venture Leasing Activity28,688 31,113 
* Early renewals represent renewals executed more than two years in advance of a lease's originally scheduled end date.
** Short-term leases represent leases with a term of less than twelve months.
Second Generation Leases
The following table sets forth the estimated costs of tenant improvements and leasing commissions, on a per square foot basis, that we are obligated to fulfill under the second generation industrial leases signed for our rental properties, during the years ended December 31, 2020 and 2019:
Square Feet of Leases
(in thousands)		Percent of Expiring Leases RenewedAverage Term in YearsEstimated Tenant Improvement Cost per Square FootLeasing Costs per Square Foot
2020201920202019202020192020201920202019
Consolidated - New Second Generation4,797 3,639 5.4 7.2 $1.79 $3.45 $2.87 $3.76 
Unconsolidated Joint Ventures - New Second Generation527 233 3.3 6.7 $1.56 $1.28 $1.12 $2.44 
Total - New Second Generation5,324 3,872 5.2 7.2 $1.92 $3.36 $2.73 $3.69 
Consolidated - Renewal6,147 10,916 65.6 %79.1 %4.6 5.1 $0.99 $0.75 $1.50 $1.41 
Unconsolidated Joint Ventures - Renewal1,142 828 86.8 %66.4 %4.7 5.2 $0.93 $0.68 $1.53 $1.91 
Total - Renewal7,289 11,744 69.5 %78.1 %4.6 5.1 $0.98 $0.75 $1.50 $1.45 
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Growth in average annual net effective rents for new second generation and renewal leases, on a combined basis, for our consolidated and unconsolidated rental properties, is as follows for the years ended December 31, 2020 and 2019:
20202019
Ownership Type
Consolidated properties28.2 %27.3 %
Unconsolidated joint venture properties33.8 %37.9 %
Lease Expirations
The table below reflects our consolidated in-service portfolio lease expiration schedule at December 31, 2020 (in thousands, except percentage data and number of leases):
 Total Consolidated PortfolioIndustrialNon-Reportable
Year of
Expiration		Square
Feet		Annual Rental
Revenue*		Number of LeasesSquare
Feet		Annual Rental
Revenue*		Square
Feet		Annual Rental
Revenue*
202110,583$50,470 12110,575$50,357 8 $113 
202217,42575,881 15117,40875,689 17 192 
202314,48272,816 15514,46172,524 21 292 
202414,35973,039 14014,35472,977 5 62 
202516,21287,976 14516,21087,951 2 25 
202612,92064,497 8712,90864,348 12 149 
20279,94249,311 389,93749,254 5 57 
20288,68057,668 368,56154,181 119 3,487 
20298,16144,689 278,16144,689 — — 
20309,97154,667 38 9,97154,667 — — 
2031 and Thereafter14,27098,314 36 14,25598,137 15 177 
Total Leased137,005$729,328 974136,801$724,774 204$4,554 
Total Portfolio Square Feet140,722140,511211
Percent Leased97.4 %97.4 %96.8 %
* Annualized rental revenue represents average annual base rental payments, on a straight-line basis for the term of each lease, from space leased to tenants at the end of the most recent reporting period. Annualized rental revenue excludes additional amounts paid by tenants as reimbursement for operating expenses.
Building Acquisitions
Our decision process in determining whether or not to acquire a property or portfolio of properties involves several factors, including expected rent growth, multiple yield metrics, property locations and expected demographic growth in each location, current occupancy of the properties, tenant profile and remaining terms of the in-place leases in the properties. It is difficult to predict which markets may present acquisition opportunities that align with our strategy. Because of the numerous factors considered in our acquisition decisions, we do not establish specific target yields for future acquisitions.
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We acquired ten buildings during the year ended December 31, 2020 and six buildings during the year ended December 31, 2019. The following table summarizes the acquisition price, percent leased at time of acquisition and in-place yields of industrial building acquisitions (in thousands, except percentage data):
2020 Acquisitions2019 Acquisitions
TypeAcquisition Price*In-Place Yield**Percent Leased at Acquisition Date***Acquisition Price*In-Place Yield**Percent Leased at Acquisition Date***
Industrial$410,817 3.3 %80.6 %$217,106 4.1 %88.4 %
* Includes fair value of real estate assets and net acquired lease-related intangible assets, including above or below market leases, but excludes assumed debt, if applicable, and other acquired working capital assets and liabilities.
** In-place yields of completed acquisitions are calculated as the current annualized net rental payments from space leased to tenants at the date of acquisition, divided by the acquisition price of the acquired real estate. Annualized net rental payments are comprised of base rental payments, excluding additional amounts payable by tenants as reimbursement for operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.
*** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of acquisition, including lease-backs with sellers executed in connection with the acquisition(s).
Building Dispositions

We regularly work to identify, consider and pursue opportunities to dispose of properties on an opportunistic basis and on a basis that is generally consistent with our strategic plans. Dispositions of properties is a source of capital to fund future investment.
We sold seven consolidated buildings during the year ended December 31, 2020 and 28 consolidated buildings during the year ended December 31, 2019. The following table summarizes the sales prices, in-place yields and percent leased of industrial building dispositions (in thousands, except percentage data):
2020 Dispositions2019 Dispositions
TypeSales PriceIn-Place Yield*Percent Leased**Sales PriceIn-Place Yield*Percent Leased**
Industrial$321,800 3.8 %77.5 %$425,767 5.6 %91.4 %
* In-place yields of completed dispositions are calculated as annualized net operating income from space leased to tenants at the date of sale on a lease-up basis, including full rent from all executed leases, even if currently in a free rent period, divided by the sales price. Annualized net operating income is comprised of base rental payments, excluding reimbursement of operating expenses, less current annualized operating expenses not recovered through tenant reimbursements.
** Represents percentage of total square feet leased based on executed leases and without regard to whether the leases have commenced, at the date of sale.
Development
We expect to generate future earnings from Rental Operations as development properties are placed in service and leased. Development activities, and our ability to lease those developments, are viewed by management as key indicators of future earnings growth and provide useful information to investors for the same reasons.
We had 7.4 million square feet of property under development with total estimated costs upon completion of $1.10 billion at December 31, 2020 compared to 8.9 million square feet with total estimated costs upon completion of $1.06 billion at December 31, 2019. The square footage and estimated costs include both consolidated properties and unconsolidated joint venture development activity at 100%.
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The following table summarizes our properties under development at December 31, 2020 (in thousands, except percentage data): 
Ownership TypeSquare
Feet		Percent
Leased		Total
Estimated
Project
Costs		Total
Incurred
to Date		Amount
Remaining
to be Spent
Consolidated properties6,927 64.5 %$1,042,303 $667,441 $374,862 
Unconsolidated joint venture properties517 100 %56,990 22,624 34,366 
Total7,444 67.0 %$1,099,293 $690,065 $409,228 
Comparison of Year Ended December 31, 2020 to Year Ended December 31, 2019
Rental and Related Revenue

The following table sets forth rental and related revenue from continuing operations (in thousands):
 
20202019
Rental and related revenue:
Industrial$921,612 $848,806 
Non-reportable Rental Operations and non-segment revenues7,582 7,027 
Total rental and related revenue from continuing operations$929,194 $855,833 
The primary reasons for the increase in rental and related revenue from continuing operations were:
•We acquired 16 properties and placed 36 wholly owned developments in service from January 1, 2019 to December 31, 2020, which provided incremental revenues from continuing operations of $66.9 million in the year ended December 31, 2020 when compared to 2019.
•Increased occupancy and rental rates within our "same-property" portfolio, as well as the lease up of properties that were placed in service prior to January 1, 2019 but were not in the "same-property" portfolio, also contributed to the increase to rental and related revenue from continuing operations.
•The increase in rental revenue included a $17.3 million increase in expense recoveries primarily related to higher recoverable real estate taxes compared to 2019.
•The sale of 35 in-service properties since January 1, 2019, which did not meet the criteria to be classified within discontinued operations, resulted in a decrease of $23.3 million to rental and related revenue from continuing operations in the year ended December 31, 2020, as compared to 2019, which partially offset the aforementioned increases to rental and related revenue from continuing operations.
•The increase in rental revenue was also partially offset by a $4.0 million increase in collectability reserves for contractual and straight-line receivables, primarily as a result of current economic conditions caused by the COVID-19 pandemic during 2020.
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Rental Expenses and Real Estate Taxes
The following table sets forth rental expenses and real estate taxes from continuing operations (in thousands): 
20202019
Rental expenses:
Industrial$75,345 $74,083 
Non-reportable Rental Operations and non-segment expenses1,294 1,501 
Total rental expenses from continuing operations$76,639 $75,584 
Real estate taxes:
Industrial$148,252 $128,887 
Non-reportable Rental Operations and non-segment expenses1,043 633 
Total real estate tax expense from continuing operations$149,295 $129,520 

Overall, rental expenses from continuing operations increased by $1.1 million in 2020 compared to 2019. The increase to rental expenses was primarily the result of acquisitions and developments placed in service from January 1, 2019 to December 31, 2020, partially offset by the impact of property sales that did not meet the criteria to be classified within discontinued operations and decreased recoverable snow removal costs in 2020 compared to 2019.

Overall, real estate tax expense from continuing operations increased by $19.8 million in 2020 compared to 2019. The increase to real estate taxes was mainly the result of acquisitions and developments placed in service from January 1, 2019 to December 31, 2020, which have generally been concentrated in markets with higher tax rates and/or assessed values, and increased tax assessments in certain of our markets. These increases were partially offset by the impact of property sales that did not meet the criteria to be classified within discontinued operations.
Service Operations
The following table sets forth the components of net earnings from the Service Operations reportable segment for the years ended December 31, 2020 and 2019, respectively (in thousands): 
20202019
Service Operations:
General contractor and service fee revenue$64,004 $117,926 
General contractor and other services expenses(57,976)(111,566)
Net earnings from Service Operations$6,028 $6,360 

Service Operations primarily consist of the development, construction management and general contractor services, leasing, property management and asset management for unconsolidated joint venture properties and properties owned by third parties. Service Operations are heavily influenced by the current state of the economy, as construction and development services rely on the expansion of business operations of third-party property owners and joint venture partners, while leasing and property management fees are dependent upon occupancy.

General contractor and service fee revenue, and general contractor and other service expenses, decreased as the result of lower third party construction volume during 2020.
Depreciation and Amortization
Depreciation and amortization expense from continuing operations was $353.0 million and $327.2 million for the years ended December 31, 2020 and 2019, respectively. The increase in depreciation and amortization expense for the year ended December 31, 2020 was primarily the result of continued growth in our portfolio through development and acquisitions placed in service from January 1, 2019 to December 31, 2020, partially offset by the impact of property sales that did not meet the criteria to be classified within discontinued operations.
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Equity in Earnings of Unconsolidated Joint Ventures
Equity in earnings of unconsolidated joint ventures represents our ownership share of net income from investments in unconsolidated joint ventures that generally own and operate rental properties. Equity in earnings of unconsolidated joint ventures was $11.9 million and $31.4 million for the years ended December 31, 2020 and 2019, respectively. In 2019, we recorded equity in earnings of $19.4 million related to our share of the gain on sale of five unconsolidated joint venture buildings and equity in earnings of $1.3 million representing our share of gains on involuntary conversion from insurance recoveries related to storm damage in one unconsolidated joint venture.
There were no property sales by unconsolidated joint ventures during 2020.
Gain on Sale of Properties - Continuing Operations
We sold seven properties during 2020 that were classified in continuing operations, recognizing total gains on sale of $127.7 million. These properties did not meet the criteria to be classified within discontinued operations.
We sold 28 properties during 2019 that were classified in continuing operations, recognizing total gains on sale of $234.7 million. These properties did not meet the criteria to be classified within discontinued operations.
Gain on Sale of Land
Gains on sale of land totaled $10.5 million and $7.4 million for the years ended December 31, 2020 and 2019, respectively. We sold 157 acres of undeveloped land in 2020 compared to 110 acres of undeveloped land in 2019.
Impairment Charges
We recognized $5.6 million of impairment charges during the first quarter of 2020, related to writing off pre-acquisition costs, primarily non-refundable purchase deposits, for certain planned purchases of undeveloped land that we elected not to pursue due to the uncertain economic outlook at the onset of the COVID-19 pandemic.
We did not recognize any impairment charges in 2019.
General and Administrative Expenses
General and administrative expenses consist of two components. The first component includes general corporate expenses, and the second component represents the indirect operating costs not allocated to, or absorbed by, either the development, leasing and operation of our consolidated properties or our Service Operations. Such indirect operating costs are primarily comprised of employee compensation, including related costs such as benefits and wage-related taxes, but also include other ancillary costs such as travel and information technology support. Total indirect operating costs, prior to any allocation or absorption, and general corporate expenses are collectively referred to as our overall pool of overhead costs.
Those indirect costs not allocated to or absorbed by these operations are charged to general and administrative expenses. We regularly review our total overhead cost structure relative to our leasing, development and construction volume and adjust the level of total overhead, generally through changes in our level of staffing in various functional departments, as necessary, in order to control overall general and administrative expense.
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General and administrative expenses were $62.4 million and $60.9 million for the years ended December 31, 2020 and 2019, respectively. The following table sets forth the factors that led to the increase in general and administrative expenses from 2019 to 2020 (in millions):
General and administrative expenses - 2019$60.9 
Decrease to overall pool of overhead costs(3.5)
Overhead restructuring charges (1)4.5 
Impact of increased allocation of costs to leasing and development activities (2)(4.1)
Decreased allocation of costs to Service Operations and Rental Operations (3)4.6 
General and administrative expenses - 2020$62.4 

(1) We recognized approximately $4.5 million of overhead restructuring charges included within general and administrative expenses. These charges primarily related to benefits provided to certain associates that terminated employment either as part of a voluntary retirement package offered to certain eligible employees during 2020 or in connection with other organizational changes.

(2) We capitalized $6.5 million and $28.8 million of our total overhead costs to leasing and development, respectively, for consolidated properties during 2020, compared to capitalizing $6.8 million and $24.2 million of such costs, respectively, for 2019. Non-capitalizable leasing costs were $12.3 million and $12.4 million for the years ended December 31, 2020 and 2019 (these costs are presented separately in the line item "Non-Incremental Costs Related to Successful Leases" on the Consolidated Statements of Operations). Combined overhead costs capitalized to leasing and development totaled 26.7% and 22.8% of our overall pool of overhead costs for 2020 and 2019, respectively.

(3) The decrease in allocation of costs to Service Operations and Rental Operations resulted from a lower volume of third-party construction projects during 2020.
Interest Expense
Interest expense allocable to continuing operations was $93.4 million and $89.8 million for the years ended December 31, 2020 and 2019, respectively. The increase in interest expense from continuing operations for the year ended December 31, 2020 was largely the result of increased overall borrowings and lower capitalization of interest expense, partially offset by lower average interest rates during 2020 as the result of refinancing certain of our unsecured notes.
We capitalized $24.3 million and $26.5 million of interest costs during 2020 and 2019, respectively.
Debt Extinguishment
During 2020, we redeemed $300.0 million of unsecured notes with a stated interest rate of 4.38% and repurchased and canceled $216.3 million of unsecured notes with a stated interest rate of 3.88% pursuant to a tender offer completed by the Partnership. In connection with redemption and repurchase of these unsecured notes, we recognized a total loss of $32.9 million including the redemption/repayment premium and the write-off of unamortized deferred financing costs.
During 2019, we redeemed $250.0 million of unsecured notes, which had a stated interest rate of 3.88%. We recognized a loss on debt extinguishment of $6.3 million, which included a prepayment premium and the write-off of unamortized deferred financing costs.

Critical Accounting Estimates
The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Certain estimates, judgments and assumptions are inherently subjective and based on the existing business and market conditions, and are therefore continually evaluated based upon available information and experience. Based on the nature of our business, current economic conditions and the value of our real estate assets, we have concluded that our financial statements for all periods presented have not been materially impacted by individual accounts or classes of transaction that rely on estimates. Further, we have concluded that our financial statements for all periods presented are not materially impacted by estimates of fair value that rely upon non-observable inputs.
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We have determined that judgments regarding the impairment of real estate assets represent a critical accounting estimate that has the potential to be material in future periods and has been material in certain periods prior to those presented in this Form 10-K. As the result of the strong demand, and generally appreciating values, for industrial real estate assets, we have not recognized any material impairment charges in any of the periods presented in our consolidated financial statements. As described below in our description of Critical Accounting Policies, determining whether a triggering event has taken place requires an evaluation of assumptions including occupancy levels, rental rates, capitalization rates and anticipated holding periods when evaluating real estate assets for potential impairment. We do not believe that the conclusions we reached regarding the assessment of our real estate assets for impairment, in the current economic and operating environment, would result in a materially different conclusion within any reasonable range of assumptions that could have been applied. Should economic conditions worsen, and the values of industrial assets decline in future periods, then the assumptions and estimates we may make in future impairment analyses, and potential future measurement of impairment charges, could be sensitive and could result in a material change in the range of potential outcomes.
Critical Accounting Policies
Note 2 to the Consolidated Financial Statements includes further discussion of our significant accounting policies. Our management has assessed the accounting policies used in the preparation of our financial statements and discussed them with our audit committee and independent auditors. The following accounting policies are considered critical based upon materiality to the financial statements, and to a lesser extent, the degree of judgment involved in estimating reported amounts and sensitivity to changes in industry and economic conditions:
Cost Capitalization: Direct and certain indirect costs, including interest, clearly associated with the development, construction or expansion of real estate investments are capitalized as a cost of the property.
We capitalize interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. We capitalize all such costs through the completion of the building shell. The interest rate used to capitalize interest is based upon our average borrowing rate on existing debt.
We also capitalize direct and indirect costs, including interest costs, on vacant space during extended lease-up periods, after construction of the building shell has been completed, if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized. We cease capitalization of all project costs on extended lease-up periods after the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy.
In assessing the amount of indirect costs to be capitalized, we first allocate payroll costs, on a department-by-department basis, among activities for which capitalization is warranted (i.e., construction and development and leasing) and those for which capitalization is not warranted (i.e., property management, maintenance, acquisitions, dispositions, non-incremental leasing costs and general corporate functions). To the extent the employees of a department split their time between capitalizable and non-capitalizable activities, the allocations are made based on estimates of the actual amount of time spent in each activity. Once the payroll costs are allocated, the non-payroll costs of each department are allocated among the capitalizable and non-capitalizable activities in the same proportion as payroll costs.
To ensure that an appropriate amount of costs are capitalized, the amount of capitalized construction and development costs that are allocated to a specific project are limited to amounts using standards we developed. These standards are based on a percentage of the total development costs of a project. These standards are derived after considering the amounts that would be allocated if the personnel in the departments were working at full capacity. The use of these standards ensures that overhead costs attributable to downtime or to unsuccessful projects are not capitalized. Additionally, only internal leasing costs that are incremental, which are comprised of success-based leasing payments to our in-house leasing personnel, are capitalized.
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Impairment of Real Estate Assets: We evaluate our real estate assets, with the exception of those that are classified as held-for-sale, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such an evaluation is considered necessary, we compare the carrying amount of that real estate asset, or asset group, with the expected undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of that asset, or asset group. Our estimate of the expected future cash flows used in testing for impairment is based on, among other things, our estimates regarding future market conditions, rental rates, occupancy levels, costs of tenant improvements, leasing commissions and other tenant concessions, assumptions regarding the residual value of our properties at the end of our anticipated holding period and the length of our anticipated holding period and is, therefore, subjective by nature. These assumptions could differ materially from actual results. If our strategy changes or if market conditions otherwise dictate a reduction in the holding period and an earlier sale date, an impairment loss could be recognized and such loss could be material. To the extent the carrying amount of a real estate asset, or asset group, exceeds the associated estimate of undiscounted cash flows, an impairment loss is recorded to reduce the carrying value of the asset to its fair value.
The determination of the fair value of real estate assets is also highly subjective, especially in markets where there is a lack of recent comparable transactions. We primarily utilize the income approach to estimate the fair value of our income producing real estate assets. To the extent that the assumptions used in testing long-lived assets for impairment differ from those of a marketplace participant, the assumptions are modified in order to estimate the fair value of a real estate asset when an impairment charge is measured. In addition to determining future cash flows, which make the estimation of a real estate asset's undiscounted cash flows highly subjective, the selection of the discount rate and exit capitalization rate used in applying the income approach is also highly subjective.
To the extent applicable marketplace data is available, we generally use the market approach in estimating the fair value of undeveloped land that is determined to be impaired.
Real estate assets that are classified as held-for-sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell.
Acquisition of Real Estate Property and Related Assets: We generally account for real estate acquisitions as asset acquisitions as opposed to business combinations. We allocate the purchase price of acquired properties to tangible and identified intangible assets based on their relative fair values, using all pertinent information available at the date of acquisition. The allocation of the purchase price to tangible assets (buildings, tenant improvements and land) is based upon management's determination of the value of the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon internally determined assumptions that we believe are consistent with current market conditions for similar properties. The most important assumptions in determining the allocation of the purchase price to tangible assets are the exit capitalization rate, estimated market rents and the fair value of the underlying land.

The purchase price of real estate assets is also allocated to intangible assets consisting of the above or below market component of in-place leases and the value of in-place leases. The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be received pursuant to the lease over its remaining term and (ii) management's estimate of the amounts that would be received using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in deferred leasing and other costs in the balance sheet and below market leases are included in other liabilities in the balance sheet; both are amortized to rental income over the remaining terms of the respective leases. Factors considered in determining the value allocable to in-place leases include estimates, during hypothetical lease up periods, related to space that is actually leased at the time of acquisition. These estimates include (i) lost rent at market rates, (ii) fixed operating costs that will be recovered from tenants and (iii) theoretical leasing commissions required to execute similar leases. These intangible assets are included in deferred leasing and other costs in the balance sheet and are amortized over the remaining term of the existing lease.
The audit committee has reviewed the critical accounting policies identified by management.

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Liquidity and Capital Resources
Overview
We expect to meet our short-term liquidity requirements over the next 12 months, which include payments of dividends and distributions, completion of development projects that are currently under construction and the capital expenditures needed to maintain our current real estate assets, through working capital, net cash provided by operating activities and short term borrowings on the Partnership's unsecured line of credit. We had $295.0 million outstanding borrowings on the Partnership's $1.20 billion unsecured line of credit, had $6.3 million of cash on hand and held $47.7 million of restricted cash in escrow for future like kind exchange transactions at December 31, 2020.
In addition to our existing sources of liquidity, we expect to meet long-term liquidity requirements, such as scheduled mortgage and unsecured debt maturities, financing of development activities, acquisitions and other capital improvements, through multiple sources of capital including operating cash flow, proceeds from property dispositions and accessing the public debt and equity markets.
Sources of Liquidity
Rental Operations
Cash flows from Rental Operations is our primary source of liquidity and provides a stable source of cash flow to fund operational expenses. We believe that this cash-based revenue stream is substantially aligned with revenue recognition (except for items such as periodic straight-line rental income accruals and amortization of above or below market rents) as cash receipts from the leasing of rental properties are generally received in advance of, or a short time following, the actual revenue recognition.
We are subject to a number of risks, which have intensified as the result of the COVID-19 outbreak, related to general economic conditions, including reduced occupancy, tenant defaults and bankruptcies and potential reduction in rental rates upon renewal or re-letting of properties, any of which would result in reduced cash flow from operations.
Debt and Equity Securities
Our unsecured line of credit at December 31, 2020 is described as follows (in thousands): 
DescriptionBorrowing
Capacity		Maturity
Date		Outstanding Balance at December 31, 2020
Unsecured Line of Credit – Partnership$1,200,000 January 30, 2022$295,000 
The Partnership's unsecured line of credit has a borrowing capacity of $1.20 billion, with an interest rate on borrowings of LIBOR plus 0.875% (equal to 1.03% for our outstanding borrowings at December 31, 2020) and a maturity date of January 30, 2022, with options to extend until January 30, 2023. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional $800.0 million, for a total of up to $2.00 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions.
This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At December 31, 2020, we were in compliance with all covenants under this line of credit.
The Partnership's unsecured line of credit has an interest rate that is indexed to LIBOR. In 2017, the Alternative Reference Rates Committee ("ARRC") proposed that the Secured Overnight Funding Rate ("SOFR") replace LIBOR. ARRC also proposed that the transition to SOFR from LIBOR take place by the end of 2021. As the Partnership's unsecured line of credit agreement has provisions that allow for automatic transition to a new rate and the Partnership has no other material debt arrangements that are indexed to LIBOR, we believe that the transition will not have a material impact on our consolidated financial statements.
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At December 31, 2020, we had on file with the SEC an automatic shelf registration statement on Form S-3 relating to the offer and sale, from time to time, of an indeterminate amount of debt and equity securities (including guarantees of the Partnership's debt securities by the General Partner). Equity securities are offered and sold by the General Partner, and the net proceeds of such offerings are contributed to the Partnership in exchange for additional General Partner Units or Preferred Units. From time to time, we expect to issue additional securities under this automatic shelf registration statement to fund the repayment of debt, to fund development and future acquisitions and for other general corporate purposes.
The General Partner has an ATM equity program that allows it to issue new common shares from time to time, with an aggregate offering price of up to $400.0 million. During the three months ended December 31, 2020, the General Partner issued 1.7 million common shares under its ATM equity program, resulting in net proceeds of $65.9 million after paying total compensation of $666,000 to the applicable sales agents. During the year ended December 31, 2020, the General Partner issued 4.6 million common shares under its ATM equity program, generating net proceeds of $175.0 million after paying total compensation of $1.8 million to the applicable sales agents. Other fees related to these issuances, totaling $344,000, were also paid during the year ended December 31, 2020. As of December 31, 2020, the ATM equity program still had $13.4 million worth of new common shares available to issue.

In February 2020, a consolidated joint venture obtained an $18.4 million secured loan from a third party financial institution, with a fixed annual interest rate of 3.41% and a maturity date of March 1, 2035.

Also in February 2020, we issued $325.0 million of senior unsecured notes that bear interest at a stated interest rate of 3.05%, have an effective interest of 3.19%, and mature on March 1, 2050, for gross proceeds of $316.4 million.

In June 2020, we issued $350.0 million of senior unsecured notes that bear interest at a stated interest rate of 1.75%, have an effective interest of 1.85%, and mature on July 1, 2030, for gross proceeds of $346.8 million.
The Partnership has issued debt securities pursuant to certain indentures and related supplemental indentures, which also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such covenants at December 31, 2020.
Sale of Real Estate Assets
We regularly work to identify, consider and pursue opportunities to dispose of properties in a manner that is generally consistent with our strategic plans. Our ability to dispose of such properties on favorable terms, or at all, is dependent upon a number of factors including the availability of credit to potential buyers to purchase properties at prices that we consider acceptable. Although we believe that we have demonstrated our ability to generate significant liquidity through the disposition of non-strategic properties, potential future adverse changes to general market and economic conditions, including the uncertain economic outlook caused by the COVID-19 pandemic, could negatively impact our further ability to dispose of such properties.
Sales of land and properties provided $336.3 million in net proceeds in 2020, compared to $432.7 million in 2019 and $511.4 million in 2018.
Transactions with Unconsolidated Joint Ventures
Transactions with unconsolidated joint ventures also provide a source of liquidity. From time to time we will sell properties to unconsolidated joint ventures, while retaining a continuing interest in that entity, and receive proceeds commensurate to those interests that we do not own. Additionally, unconsolidated joint ventures will from time to time obtain debt financing or sell properties and will then distribute to us, and our joint venture partners, all or a portion of the proceeds from such transactions. There were no material transactions with unconsolidated joint ventures in 2020.
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Uses of Liquidity
Our principal uses of liquidity include the following:
 
•property investment;
•leasing/capital costs;
•dividends and distributions to shareholders and unitholders;
•debt service and maturities;
•opportunistic repurchases of outstanding debt; and
•other contractual obligations.
Property Investment
Our overall strategy is to continue to increase our investment in quality industrial properties, primarily through development, on both a speculative and build-to-suit basis, supplemented with acquisitions in higher barrier markets with the highest growth potential. Pursuant to this strategy, we evaluate development and acquisition opportunities based upon our market outlook, including general economic conditions, supply and long-term growth potential. Our ability to make future property investments is dependent upon identifying suitable acquisition and development opportunities, and our continued access to our longer-term sources of liquidity, including issuances of debt or equity securities as well as generating cash flow by disposing of selected properties.
Leasing/Capital Costs
Tenant improvements and lease-related costs pertaining to our initial leasing of newly completed space, or vacant space in acquired properties, are referred to as first generation expenditures. Such first generation expenditures for tenant improvements are included within "development of real estate investments" in our Consolidated Statements of Cash Flows, while such expenditures for capitalizable lease-related costs are included within "other deferred leasing costs."
Cash expenditures related to the construction of a building's shell, as well as the associated site improvements, are also included within "development of real estate investments" in our Consolidated Statements of Cash Flows.
Tenant improvements and leasing costs to renew or re-let rental space that we previously leased to tenants for second generation leases are referred to as second generation expenditures. Building improvements that are not specific to any tenant, but serve to improve integral components of our real estate properties, are also second generation expenditures. One of the principal uses of our liquidity is to fund the second generation leasing/capital expenditures of our real estate investments.
The following table summarizes our second generation capital expenditures by type of expenditure, as well as capital expenditures for the development of real estate investments and for other deferred leasing costs (in thousands):
 
202020192018
Second generation tenant improvements$17,126 $12,165 $18,797 
Second generation leasing costs19,870 22,879 24,899 
Building improvements4,103 12,505 9,778 
Total second generation capital expenditures$41,099 $47,549 $53,474 
Development of real estate investments$573,544 $446,801 $577,383 
Other deferred leasing costs$45,545 $38,509 $39,380 

We had consolidated properties under development with an expected total cost of $1.04 billion at December 31, 2020, compared to projects with an expected cost of $1.05 billion and $709.7 million at December 31, 2019 and 2018, respectively. We had $374.9 million of remaining costs to complete for consolidated properties under development at December 31, 2020.

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The capital expenditures in the table above include the capitalization of internal overhead costs. We capitalized $6.5 million, $6.8 million and $19.0 million of overhead costs that are incremental to executing leases, including both first and second generation leases, during the years ended December 31, 2020, 2019 and 2018, respectively. We capitalized $28.8 million, $24.2 million and $29.8 million of overhead costs related to development activities, including both development and tenant improvement projects on first and second generation space, during the years ended December 31, 2020, 2019 and 2018, respectively. Combined overhead costs capitalized to leasing and development totaled 26.7%, 22.8% and 35.1% of our overall pool of overhead costs at December 31, 2020, 2019 and 2018, respectively. The decrease in the overhead costs capitalized to leasing for 2020 and 2019 compared to 2018 was primarily due to the expense impact of internal costs related to successful leasing which were not capitalizable as a result of the adoption of the new lease standard on January 1, 2019 (see Note 2 to the consolidated financial statements included in Part IV, Item 15 of this Report) and was included in the line item "Non-incremental costs related to successful leases" on the Consolidated Statements of Operations and Comprehensive Income for 2020 and 2019.

Further discussion of the capitalization of overhead costs can be found in the year-to-year comparison of general and administrative expenses and Critical Accounting Policies sections of this Item 7.

In addition to the capitalization of overhead costs, the totals for development of real estate assets in the table above include the capitalization of $24.3 million, $26.5 million and $27.2 million of interest costs in the years ended December 31, 2020, 2019 and 2018, respectively.
Both our first and second generation expenditures vary significantly between leases on a per square foot basis, dependent upon several factors including the nature of a tenant's operations, the specific physical characteristics of each individual property and the market in which the property is located.
Dividend and Distribution Requirements
The General Partner is required to meet the distribution requirements of the Code in order to maintain its REIT status. We paid regular dividends or distributions of $0.96, $0.88 and $0.815 per common share or Common Unit for the years ended December 31, 2020, 2019 and 2018, respectively.
We expect to continue to distribute at least an amount equal to our taxable earnings, to meet the requirements to maintain the General Partner's REIT status, and additional amounts as determined by the General Partner's board of directors. Distributions are declared at the discretion of the General Partner's board of directors and are subject to actual cash available for distribution, our financial condition, capital requirements and such other factors as the General Partner's board of directors deems relevant.
Debt Service and Maturities
Debt outstanding at December 31, 2020 had a face value totaling $3.41 billion with a weighted average interest rate of 3.17% and maturities at various dates through 2050. Of this total amount, we had $3.06 billion of unsecured debt, $60.6 million of secured debt and $295.0 million outstanding borrowings on our unsecured line of credit at December 31, 2020. Scheduled principal amortization, maturities and early repayments of such debt totaled $529.7 million for the year ended December 31, 2020.
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The following table is a summary of the scheduled future amortization and maturities of our indebtedness at December 31, 2020 (in thousands, except percentage data): 
 Future Repayments
YearScheduled
Amortization		MaturitiesTotalWeighted Average
Interest Rate of
Future Repayments
2021$4,413 $— $4,413 5.16%
20224,646 83,740 88,386 3.99%
20234,893 545,000 549,893 2.29%
20245,155 300,000 305,155 3.92%
20255,102 — 5,102 5.08%
20263,238 375,000 378,238 3.38%
20271,615 475,000 476,615 3.18%
20281,307 500,000 501,307 4.45%
20291,359 400,000 401,359 2.88%
20301,413 350,000 351,413 1.86%
Thereafter4,730 347,734 352,464 3.26%
$37,871 $3,376,474 $3,414,345 3.17%

The Partnership’s unsecured line of credit is reflected in the table above as maturing in January 2023, based on the ability to exercise the two six-month extension options from its stated maturity date of January 2022 (see Note 9). In January 2021, we issued $450.0 million of senior unsecured notes that bear a stated interest rate of 1.75%, have an effective interest rate of 1.83%, and mature on February 1, 2031. Proceeds from the unsecured notes offering were initially applied to pay down outstanding borrowings on our line of credit as of December 31, 2020, and we intend to allocate an amount equal to the net proceeds from the offering to the financing or refinancing of eligible green projects.
We anticipate generating capital to fund our debt maturities by using undistributed cash generated from our Rental Operations and property dispositions and by raising additional capital from future debt or equity transactions.
Repayments of Outstanding Debt
To the extent that it supports our overall capital strategy, we may purchase or redeem some of our outstanding unsecured notes prior to their stated maturities.
In March 2020, we redeemed $300.0 million of unsecured notes that were scheduled to mature in June 2022.
In June 2020, we repurchased and canceled $216.3 million of unsecured notes that were scheduled to mature in October 2022 pursuant to a tender offer completed by the Partnership.
During 2020, we repaid one fixed rate secured loan of $9.0 million, which had a stated interest rate of 5.61%.
Lease Commitments

As of December 31, 2020, we have total future payment obligations of $225.2 million on our ground leases and $27.9 million on our office leases and other lease arrangements, over their non-cancellable lease period including applicable lease extension and renewal options when deemed reasonably certain of exercise. See Note 14 to Consolidated Financial Statements for further discussion.
Guarantee Obligations
We are subject to various guarantee obligations in the normal course of business and, in most cases, do not anticipate these obligations to result in significant cash payments. At December 31, 2020, we guaranteed the repayment of $81.3 million of loans associated with two of our unconsolidated joint ventures. In January 2021, we, and the other partner in one of these unconsolidated joint ventures, repaid $69.8 million of such guaranteed loans.
Additionally, as of December 31, 2020, we guaranteed the repayment of $20.1 million of economic development bonds issued by various municipalities in connection with certain commercial developments.
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Historical Cash Flows
Cash, cash equivalents and restricted cash were $67.2 million, $121.4 million and $25.5 million at December 31, 2020, 2019, and 2018, respectively. The following table highlights significant changes in net cash associated with our operating, investing and financing activities (in thousands): 
 Years Ended December 31,
 202020192018
Net cash provided by operating activities$566,436 $505,898 $484,407 
Net cash used for investing activities(856,221)(555,074)(594,430)
Net cash provided by (used for) financing activities235,577 145,090 (58,087)
Operating Activities
Cash flows from operating activities provide the cash necessary to meet our operational requirements and the receipt of rental income from Rental Operations continues to be our primary source of operating cash flows. The increase in net cash provided by operating activities, compared to 2019, was driven by increasing our asset base through development, financed through equity or low cost debt issuances, and increasing occupancy and rental rates within our existing portfolio.
The increase to cash flow provided by operating activities between 2019 and 2018 was due to the timing of cash receipts and cash payments on third party construction projects as well as increased cash flows from our Rental Operations. These increases in operating cash flows were partially offset by increased cash paid for interest and income taxes as well as the timing of working capital.
Investing Activities
Highlights of significant cash sources and uses are as follows:
•Real estate development costs were $573.5 million, $446.8 million and $577.4 million during 2020, 2019 and 2018, respectively.
•We paid cash of $632.1 million, $598.4 million and $592.4 million, for real estate and undeveloped land acquisitions during 2020, 2019 and 2018, respectively.
•Sales of land and property generated net proceeds of $336.3 million, $432.7 million and $511.4 million during 2020, 2019 and 2018, respectively.
•During 2020, we received repayments of $110.0 million on notes receivable from property sales, compared to $162.6 million and $154.1 million in 2019 and 2018, respectively.
•Second generation tenant improvements, leasing costs and building improvements totaled $41.1 million, $47.5 million and $53.5 million during 2020, 2019 and 2018, respectively.
•We receive capital distributions from unconsolidated joint ventures, either as the result of selling our ownership interests in certain unconsolidated joint ventures or from our share of the proceeds from property sales from unconsolidated joint ventures. In 2020, we received $876,000 in capital distributions primarily from one unconsolidated joint venture from the sale of land. We received $26.3 million in capital distributions from unconsolidated joint ventures during 2019, primarily related to the sale of three properties within three of our unconsolidated joint ventures. We received $23.1 million in capital distributions from unconsolidated joint ventures during 2018, primarily related to the sale of six properties within three of our unconsolidated joint ventures.
•We made capital contributions and advances to unconsolidated joint ventures in the amounts of $6.2 million, $34.5 million and $5.9 million during 2020, 2019 and 2018, respectively.
Financing Activities
The following items highlight significant capital transactions:
•During 2020, the General Partner issued 4.6 million common shares pursuant to its ATM equity programs for net proceeds of $175.0 million, compared to 8.0 million shares of common stock for net proceeds of $263.3 million in 2019 and 990,400 shares of common stock for net proceeds of $28.4 million in 2018.
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•We issued $675.0 million, $575.0 million and $450.0 million of senior unsecured notes during 2020, 2019 and 2018, respectively. The 2020 unsecured debt issuances consist of $325.0 million of senior unsecured notes issued in February 2020 for gross proceeds of $316.4 million and $350.0 million of senior unsecured notes issued in June 2020 for gross proceeds of $346.8 million. The 2019 unsecured debt issuances consist of $175.0 million of senior unsecured notes issued in August 2019 for gross proceeds of $182.3 million and $400.0 million of senior unsecured notes issued in November 2019 with a corresponding cash payment of $35.6 million for termination of the five forward starting interest rate swaps entered in 2018 and 2019. We issued $450.0 million of senior unsecured notes in 2018.
•During 2020, the Partnership paid cash of $547.0 million for the early redemption of $300.0 million of senior unsecured notes that were scheduled to mature in June 2022 and the early repurchase and cancellation of $216.3 million of senior unsecured notes due in October 2022. During 2019, the Partnership paid cash of $255.8 million for the early redemption of $250.0 million of senior unsecured notes that were scheduled to mature in February 2021. The Partnership repaid $7.0 million of unsecured debt in 2018.
•In February 2020, a consolidated joint venture of the Partnership obtained a secured loan from a third party financial institution for gross proceeds of $18.4 million. No secured loans were obtained in 2019 or 2018.
•The Partnership repaid one secured loan for $9.0 million during 2020, compared to repayments of three secured loans for $41.7 million in 2019 and three secured loans for $227.1 million in 2018.
•We increased net borrowings on the Partnership's unsecured line of credit by $295.0 million in 2020, decreased net borrowings by $30.0 million in 2019 and increased net borrowings by $30.0 million in 2018.
•We paid regular cash dividends or distributions of $0.96, $0.88 and $0.815 per common share or per Common Unit during the years ended December 31, 2020, 2019 and 2018, respectively.
•Changes in book cash overdrafts are classified as financing activities within our consolidated Statements of Cash Flows. Book cash overdrafts were $16.4 million, $14.4 million and $14.3 million at December 31, 2020, 2019 and 2018, respectively.
•In 2019, we paid off a special assessment bond for $9.9 million, which was reflected within Other Financing Activities on our Consolidated Statements of Cash Flows. We did not make similar significant repayments during 2020 or 2018.

Impact of Changes in Credit Ratings on Our Liquidity

We are currently assigned investment grade corporate credit ratings on our senior unsecured notes from Moody's Investors Service and Standard & Poor's Ratings Group. Our senior unsecured notes have been assigned a rating of Baa1 by Moody's Investors Service. In addition, our senior unsecured notes have been assigned a rating of BBB+ by Standard & Poor's Ratings Group. A securities rating is not a recommendation to buy, sell, or hold securities and is subject to revision or withdrawal at any time by the rating organization.

The ratings of our senior unsecured notes could change based upon, among other things, the impact that prevailing economic conditions may have on our results of operations and financial condition. If our credit ratings are downgraded or other negative action is taken, we could be required, among other things, to pay additional interest and fees on outstanding borrowings under our revolving credit agreement. Credit rating reductions by one or more rating agencies could also adversely affect our access to funding sources, the cost and other terms of obtaining funding, as well as our overall financial condition, operating results and cash flow.

Financial Instruments

We are exposed to capital market risk, such as changes in interest rates. In order to reduce the volatility relating to interest rate risk, we may enter into interest rate hedging arrangements from time to time. We do not utilize derivative financial instruments for trading or speculative purposes.


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Item 7A.  Quantitative and Qualitative Disclosure About Market Risks

We are exposed to interest rate changes primarily as a result of our line of credit and long-term borrowings. Our interest rate risk management objective is to limit the impact of interest rate changes on earnings and cash flows and to lower overall borrowing costs. To achieve our objectives, we borrow primarily at fixed rates and may enter into derivative financial instruments such as interest rate swaps in order to mitigate our interest rate risk on a related financial instrument. We do not enter into derivative or interest rate transactions for speculative purposes.
Our interest rate risk is monitored using a variety of techniques. The table below presents the principal amounts (in thousands) of the expected annual maturities, weighted average interest rates for the average debt outstanding in the specified period and fair values (in thousands).
20212022202320242025ThereafterTotalFair Value
Long-Term Debt:
Fixed rate secured debt$4,113 $4,346 $4,593 $4,855 $4,702 $36,396 $59,005 $65,848 
Weighted average interest rate5.53 %5.54 %5.55 %5.56 %5.51 %4.18 %4.70 %
Variable rate secured debt$300 $300 $300 $300 $400 $— $1,600 $1,600 
Weighted average interest rate0.08 %0.08 %0.08 %0.08 %0.08 %N/A0.08 %
Fixed rate unsecured debt$— $83,740 $250,000 $300,000 $— $2,425,000 $3,058,740 $3,387,913 
Weighted average interest rateN/A3.93 %3.72 %3.90 %N/A3.23 %3.35 %
Unsecured line of credit$— $— $295,000 $— $— $— $295,000 $295,000 
Rate at December 31, 2020N/AN/A1.03 %N/AN/AN/A1.03 %
The Partnership’s unsecured line of credit is reflected in the table above as maturing in January 2023, based on the ability to exercise the two six-month extension options from its stated maturity date of January 2022 (see Note 9). As the above table incorporates only those exposures that existed at December 31, 2020, it does not consider those exposures or positions that could arise after that date. As a result, the ultimate impact of interest rate fluctuations will depend on future exposures that arise, our hedging strategies at that time, to the extent we are party to interest rate derivatives, and interest rates. Interest expense on our unsecured line of credit will be affected by fluctuations in the LIBOR indices or applicable replacement rates as well as changes in our credit rating. The interest rate at such point in the future as we may renew, extend or replace our unsecured line of credit will be heavily dependent upon the state of the credit environment.
At December 31, 2020, the face value of our unsecured debt was $3.06 billion and we estimated the fair value of that unsecured debt to be $3.39 billion.  At December 31, 2019, the face value of our unsecured debt was $2.90 billion and we estimated the fair value of that unsecured debt to be $3.05 billion. 

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Item 8.  Financial Statements and Supplementary Data
The financial statements and supplementary data are included under Item 15 of this Report and are incorporated herein by reference.

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There was no change or disagreement with our accountants related to our accounting and financial disclosures.
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Item 9A.  Controls and Procedures
Controls and Procedures (General Partner)
We conducted an evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" as of the end of the period covered by this Report. The controls evaluation was done under the supervision and with the participation of management, including the Chief Executive Officer and the Chief Financial Officer.
Attached as exhibits to this Report are certifications of our Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934. This Controls and Procedures section includes the information concerning the controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.
Disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")) are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.
Based on the disclosure controls and procedures evaluation referenced above, our Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective.
Management's annual report on internal control over financial reporting and the audit report of our independent registered public accounting firm are included in Item 15 of Part IV under the headings "Management's Report on Internal Control" and "Report of Independent Registered Public Accounting Firm," respectively, and are incorporated herein by reference.
There were no changes in our internal control over financial reporting during the quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Controls and Procedures (Partnership)
We conducted an evaluation of the effectiveness of the design and operation of our "disclosure controls and procedures" as of the end of the period covered by this Report. The controls evaluation was done under the supervision and with the participation of management, including the General Partner's Chief Executive Officer and Chief Financial Officer.
Attached as exhibits to this Report are certifications of the General Partner's Chief Executive Officer and Chief Financial Officer, which are required in accordance with Rule 13a-14 of the Securities Exchange Act of 1934. This Controls and Procedures section includes the information concerning the controls evaluation referred to in the certifications and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.
Disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management, including the General Partner's principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.
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Based on the disclosure controls and procedures evaluation referenced above, the General Partner's Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Report, our disclosure controls and procedures were effective.
Management's annual report on internal control over financial reporting and the audit report of our independent registered public accounting firm are included in Item 15 of Part IV under the headings "Management's Report on Internal Control" and "Report of Independent Registered Public Accounting Firm," respectively, and are incorporated herein by reference.
There were no changes in our internal control over financial reporting during the quarter ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B.  Other Information
There was no information required to be disclosed in a report on Form 8-K during the fourth quarter of 2020 for which no Form 8-K was filed.
Our discussion of federal income tax considerations in Exhibit 99.1 attached hereto, which is incorporated herein by reference, supersedes and replaces, in its entirety, (i) the disclosure under the heading “Federal Income Tax Considerations” in the prospectus dated July 25, 2019, which is a part of our Registration Statement on Form S-3 (File No. 333-232816), as amended or supplemented, (ii) the disclosure under the heading “Federal Income Tax Considerations” in the prospectus dated April 30, 2018, which is a part of our Registration Statement on Form S-3 (File No. 333-224538), as amended or supplemented, and (iii) similarly titled sections in the prospectuses contained in our other Registration Statements on Form S-3 (File Nos. 333-128132, 333-108556, 333-70678, 333-59138, 333-51344, 333-39498, 333-35008, 333-85009, 333-82063, 333-66919, 333-50081, 333-26833, 333-24289, and 033-64659), as amended or supplemented. Our updated discussion addresses recent tax law changes.

PART III
Item 10.  Directors, Executive Officers and Corporate Governance
The following is a summary of the executive officers of the General Partner:
James B. Connor, age 62.  Mr. Connor was named the General Partner's Chairman and Chief Executive Officer, commencing April 26, 2017, and joined the General Partner's Board of Directors in 2015. Prior to being named Chairman and Chief Executive Officer, Mr. Connor held various senior management positions with the General Partner, including President and Chief Executive Officer from January 1, 2016 to April 25, 2017; Senior Executive Vice President and Chief Operating Officer from 2013 to 2015; Senior Regional Executive Vice President from 2011 to 2013; Executive Vice President of the Midwest Region from 2003 to 2011; and Senior Vice President between 1998 and 2003. Prior to joining the General Partner in 1998, Mr. Connor held numerous executive and brokerage positions with Cushman & Wakefield, most recently serving as Senior Managing Director for the Midwest area. In 2019, Mr. Connor joined the Board of Trustees of EPR Properties, a publicly traded REIT. Mr. Connor also serves on the Board of Trustees of Roosevelt University and is a member of the Advisory Board of Directors of the Marshall Bennett Institute of Real Estate at Roosevelt.
Mark A. Denien, age 53. Mr. Denien was appointed the General Partner's Executive Vice President and Chief Financial Officer on May 17, 2013. Prior to being named Executive Vice President and Chief Financial Officer, Mr. Denien was Senior Vice President and Chief Accounting Officer from 2009 to 2013 and, prior to that, served as Senior Vice President, Corporate Controller. Prior to joining the General Partner in 2005, Mr. Denien spent 16 years with KPMG LLP. Mr. Denien serves as a director of Goodwill Industries of Central Indiana, Inc.
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Steven W. Schnur, age 47. Mr. Schnur has served as the General Partner's Executive Vice President and Chief Operating Officer since September 2019. Prior to being named Executive Vice President and Chief Operating Officer, Mr. Schnur served as Senior Regional Executive Vice President from May 2017 until September 2019; Executive Vice President, Central Region from January 2015 until May 2017; Senior Regional, Senior Vice President from August 2014 until January 2015; Senior Vice President, Midwest Region from December 2013 until August 2014; and Senior Vice President, Chicago from October 2004 until December 2013. Mr. Schnur began his career with the General Partner as a Vice President, Leasing in September 2003. Prior to that, Mr. Schnur was Director of Real Estate for Opus North Corporation.
Nicholas C. Anthony, age 55. Mr. Anthony was appointed the General Partner's Executive Vice President and Chief Investment Officer on June 17, 2013. His responsibilities include overseeing the General Partner's acquisition and disposition activity, as well as the overall management of its joint venture business. Prior to being named Executive Vice President and Chief Investment Officer, Mr. Anthony held various senior management positions with the General Partner, including Senior Vice President, Capital Transactions and Joint Ventures from 2010 until 2013. Mr. Anthony began his career with the General Partner in 1989 as a staff accountant.
Ann C. Dee, age 61. Ms. Dee was appointed the General Partner's Executive Vice President, General Counsel and Corporate Secretary on June 17, 2013. Prior to being named Executive Vice President, General Counsel and Corporate Secretary, Ms. Dee held the position of Senior Vice President, General Counsel and Corporate Secretary from January 1, 2013 until June 17, 2013 and the position of Deputy General Counsel and Senior Vice President from June 23, 2008 until January 1, 2013. Ms. Dee joined the General Partner in 1996 as a Corporate Attorney. Prior to joining the General Partner, Ms. Dee practiced law with law firms in Indianapolis, Indiana and Columbus, Ohio. Ms. Dee serves as a member of the Board of the Center for Performing Arts.
Peter D. Harrington, age 57. Mr. Harrington was named the General Partner's Executive Vice President, Construction on July 1, 2016. Prior to being named Executive Vice President, Construction, Mr. Harrington held various senior management positions with the General Partner, including Senior Vice President, Construction from 2003 to June 30, 2016; Vice President of Construction from 1998 until 2003; and Manager of Preconstruction Services from 1993 to 1998. Prior to joining the General Partner in 1993, Mr. Harrington was employed with Miller-Valentine Group in Dayton, Ohio from 1987 through 1993 as a Project Coordinator and Project Manager.
All other information required by this item will be included in the General Partner's 2021 proxy statement (the "2021 Proxy Statement") for the General Partner's Annual Meeting of Shareholders to be held on April 28, 2021, and is incorporated herein by reference. In addition, the General Partner's Code of Business Ethics (which applies to each of our associates, officers and directors) and the General Partner's Corporate Governance Guidelines are available in the investor information/corporate governance section of our website at www.dukerealty.com. A copy of these documents may also be obtained without charge by writing to Duke Realty Corporation, 8711 River Crossing Boulevard, Indianapolis, Indiana 46240, Attention: Investor Relations.
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Item 11.  Executive Compensation
The information required by Item 11 of this Report will be included in our 2021 Proxy Statement, which information is incorporated herein by this reference.

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The information required by Item 12 of this Report will be included in our 2021 Proxy Statement, which information is incorporated herein by this reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required to be furnished pursuant to Item 13 of this Report will be included in our 2021 Proxy Statement, which information is incorporated herein by this reference.

Item 14. Principal Accountant Fees and Services
The information required to be furnished pursuant to Item 14 of this Report will be included in our 2021 Proxy Statement, which information is incorporated herein by this reference.
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PART IV
Item 15.  Exhibits and Financial Statement Schedules 
(a)The following documents are filed as part of this Annual Report:
1.    Consolidated Financial Statements
The following Consolidated Financial Statements, together with the Management's Report on Internal Control and the Report of Independent Registered Public Accounting Firm are listed below:
Duke Realty Corporation:
Duke Realty Limited Partnership:
Duke Realty Corporation:
Duke Realty Limited Partnership:
Duke Realty Corporation and Duke Realty Limited Partnership:
 
2.    Consolidated Financial Statement Schedules
    Duke Realty Corporation and Duke Realty Limited Partnership:
    Schedule III – Real Estate and Accumulated Depreciation
 3.    Exhibits
The exhibits required to be filed with this Report pursuant to Item 601 of Regulation S-K are listed on pages 120 to 123 of this Report and are incorporated herein by reference. 

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Management's Report on Internal Control
We, as management of Duke Realty Corporation and its subsidiaries (the "General Partner"), are responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Pursuant to the rules and regulations of the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of, the company's principal executive and principal financial officers, or persons performing similar functions, and effected by the company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:
 
•Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the company;
•Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company's assets that could have a material effect on the financial statements.
Management has evaluated the effectiveness of its internal control over financial reporting as of December 31, 2020 based on the control criteria established in a report entitled Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation, we have concluded that, as of December 31, 2020, our internal control over financial reporting is effective based on these criteria.
The independent registered public accounting firm of KPMG LLP, as auditors of the General Partner's consolidated financial statements, has also issued an audit report on the General Partner's internal control over financial reporting.
 
/s/ James B. Connor
James B. Connor
Chairman and Chief Executive Officer
/s/ Mark A. Denien
Mark A. Denien
Executive Vice President and Chief Financial Officer

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Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors
Duke Realty Corporation:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Duke Realty Corporation and subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of operations and comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III - real estate and accumulated depreciation (collectively, the consolidated financial statements). We also have audited the Company's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control. Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

-57-

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Evaluation of real estate assets for potential impairment
As discussed in Note 8 to the consolidated financial statements, buildings, land and improvements as of December 31, 2020 was $8,695,678 thousand. As discussed in Note 2 to the consolidated financial statements, the Company evaluates its real estate assets for potential impairment whenever events or changes in circumstances indicate that the carrying value of real estate assets may not be recoverable. The evaluation of real estate assets for potential impairment is subject to certain assumptions which includes the anticipated holding period for a real estate asset.

We identified the evaluation of real estate assets for potential impairment as a critical audit matter. Subjective and challenging auditor judgment was required to evaluate the Company’s intent and ability to hold real estate assets for particular periods of time. A shortening of the anticipated holding period could indicate a potential impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of an internal control over the Company’s process to evaluate potential impairment triggering events, including evaluation of holding period. We compared the Company’s historical holding period for similar assets to the holding period assumed in the Company’s analysis. We inquired of Company officials and inspected documents, such as meeting minutes of the board of directors and sub-committees, investment committee, and regional investment committees to evaluate the Company’s intent and ability to hold real estate assets for particular periods of time. We read external communications with investors and analysts in order to identify information regarding potential sales of the Company’s real estate assets.




/s/ KPMG LLP
We have served as the Company’s auditor since 1986.
Indianapolis, Indiana
February 19, 2021
-58-

Management's Report on Internal Control
We, as management of Duke Realty Limited Partnership and its subsidiaries (the "Partnership"), are responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). Pursuant to the rules and regulations of the Securities and Exchange Commission, internal control over financial reporting is a process designed by, or under the supervision of the principal executive and principal financial officers, or persons performing similar functions, of Duke Realty Corporation (the "General Partner"), and effected by the General Partner's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:
 
•Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets of the Partnership;
•Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the General Partner; and
•Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Partnership's assets that could have a material effect on the financial statements.
Management has evaluated the effectiveness of its internal control over financial reporting as of December 31, 2020 based on the control criteria established in a report entitled Internal Control – Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on such evaluation, we have concluded that, as of December 31, 2020, our internal control over financial reporting is effective based on these criteria.
The independent registered public accounting firm of KPMG LLP, as auditors of the Partnership's consolidated financial statements, has also issued an audit report on the Partnership's internal control over financial reporting.
 
/s/ James B. Connor
James B. Connor
Chairman and Chief Executive Officer
of the General Partner
/s/ Mark A. Denien
Mark A. Denien
Executive Vice President and Chief Financial Officer
of the General Partner


-59-

Report of Independent Registered Public Accounting Firm
To the Unitholders of Duke Realty Limited Partnership and the Board of Directors of Duke Realty Corporation:
Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
We have audited the accompanying consolidated balance sheets of Duke Realty Limited Partnership and subsidiaries (the Partnership) as of December 31, 2020 and 2019, the related consolidated statements of operations and comprehensive income, cash flows, and changes in equity for each of the years in the three-year period ended December 31, 2020, and the related notes and financial statement schedule III - real estate and accumulated depreciation (collectively, the consolidated financial statements). We also have audited the Partnership's internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting principles. Also in our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Basis for Opinions
The Partnership’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control. Our responsibility is to express an opinion on the Partnership’s consolidated financial statements and an opinion on the Partnership’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
-60-

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.
Evaluation of real estate assets for potential impairment
As discussed in Note 8 to the consolidated financial statements, buildings, land and improvements as of December 31, 2020 was $8,695,678 thousand. As discussed in Note 2 to the consolidated financial statements, the Partnership evaluates its real estate assets for potential impairment whenever events or changes in circumstances indicate that the carrying value of real estate assets may not be recoverable. The evaluation of real estate assets for potential impairment is subject to certain assumptions which includes the anticipated holding period for a real estate asset.

We identified the evaluation of real estate assets for potential impairment as a critical audit matter. Subjective and challenging auditor judgment was required to evaluate the Partnership’s intent and ability to hold real estate assets for particular periods of time. A shortening of the anticipated holding period could indicate a potential impairment.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of an internal control over the Partnership’s process to evaluate potential impairment triggering events, including evaluation of holding period. We compared the Partnership’s historical holding period for similar assets to the holding period assumed in the Partnership’s analysis. We inquired of Partnership officials and inspected documents, such as meeting minutes of the General Partner’s board of directors and sub-committees, investment committee, and regional investment committees to evaluate the Partnership’s intent and ability to hold real estate assets for particular periods of time. We read external communications with investors and analysts in order to identify information regarding potential sales of the Partnership’s real estate assets.





/s/ KPMG LLP
We have served as the Partnership’s auditor since 1994.
Indianapolis, Indiana
February 19, 2021
-61-

DUKE REALTY CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
As of December 31,
(in thousands, except per share amounts)
 
20202019
ASSETS
Real estate investments:
Real estate assets$8,745,155 $7,993,377 
Construction in progress695,219 550,926 
Investments in and advances to unconsolidated joint ventures131,898 133,074 
Undeveloped land291,614 254,537 
9,863,886 8,931,914 
Accumulated depreciation(1,659,308)(1,480,461)
Net real estate investments8,204,578 7,451,453 
Real estate investments and other assets held-for-sale67,946 18,463 
Cash and cash equivalents6,309 110,891 
Accounts receivable15,204 20,349 
Straight-line rent receivable153,943 129,344 
Receivables on construction contracts, including retentions30,583 25,607 
Deferred leasing and other costs, net of accumulated amortization of $204,122 and $203,857329,765 320,444 
Restricted cash held in escrow for like-kind exchange47,682 1,673 
Notes receivable from property sales— 110,000 
Other escrow deposits and other assets255,384 232,338 
$9,111,394 $8,420,562 
LIABILITIES AND EQUITY
Indebtedness:
Secured debt, net of deferred financing costs of $343 and $164$64,074 $34,023 
Unsecured debt, net of deferred financing costs of $32,763 and $19,2583,025,977 2,880,742 
Unsecured line of credit295,000 — 
3,385,051 2,914,765 
Liabilities related to real estate investments held-for-sale7,740 887 
Construction payables and amounts due subcontractors, including retentions62,332 68,840 
Accrued real estate taxes76,501 69,042 
Accrued interest18,363 14,181 
Other liabilities269,806 223,680 
Tenant security deposits and prepaid rents57,153 48,907 
Total liabilities3,876,946 3,340,302 
Shareholders' equity:
Common shares ($0.01 par value); 600,000 shares authorized; 373,258 and 367,950 shares issued and outstanding, respectively3,733 3,680 
Additional paid-in capital5,723,326 5,525,463 
Accumulated other comprehensive loss(31,568)(35,036)
Distributions in excess of net income(532,519)(475,992)
Total shareholders' equity5,162,972 5,018,115 
Noncontrolling interests71,476 62,145 
Total equity5,234,448 5,080,260 
$9,111,394 $8,420,562 
See accompanying Notes to Consolidated Financial Statements.
-62-

DUKE REALTY CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income
For the Years Ended December 31,
(in thousands, except per share amounts)
202020192018
Revenues:
Rental and related revenue$929,194 $855,833 $785,319 
General contractor and service fee revenue64,004 117,926 162,551 
993,198 973,759 947,870 
Expenses:
Rental expenses76,639 75,584 71,436 
Real estate taxes149,295 129,520 125,269 
General contractor and other services expenses57,976 111,566 153,909 
Depreciation and amortization353,013 327,223 312,217 
636,923 643,893 662,831 
Other operating activities:
Equity in earnings of unconsolidated joint ventures11,944 31,406 21,444 
Gain on sale of properties127,700 234,653 204,988 
Gain on land sales10,458 7,445 10,334 
Other operating expenses(8,209)(5,318)(5,231)
Impairment charges(5,626)— — 
Non-incremental costs related to successful leases(12,292)(12,402)— 
General and administrative expenses(62,404)(60,889)(56,218)
61,571 194,895 175,317 
Operating income417,846 524,761 460,356 
Other income (expenses):
Interest and other income, net1,721 9,941 17,234 
Interest expense(93,442)(89,756)(85,006)
Loss on debt extinguishment(32,900)(6,320)(388)
Gain on involuntary conversion4,312 2,259 — 
Income from continuing operations before income taxes297,537 440,885 392,196 
Income tax benefit (expense)5,112 (8,686)(8,828)
Income from continuing operations302,649 432,199 383,368 
Discontinued operations:
Income before gain on sales and income taxes— — 108 
Gain on sale of properties111 445 3,792 
Income from discontinued operations111 445 3,900 
Net income302,760 432,644 387,268 
Net income attributable to noncontrolling interests(2,845)(3,672)(3,539)
Net income attributable to common shareholders$299,915 $428,972 $383,729 
Basic net income per common share:
Continuing operations attributable to common shareholders$0.81 $1.18 $1.06 
Discontinued operations attributable to common shareholders— — 0.01 
Total$0.81 $1.18 $1.07 
Diluted net income per common share:
Continuing operations attributable to common shareholders$0.80 $1.18 $1.06 
Discontinued operations attributable to common shareholders— — 0.01 
Total$0.80 $1.18 $1.07 
Weighted average number of common shares outstanding370,057 362,234 357,569 
Weighted average number of common shares and potential dilutive securities374,156 367,339 363,297 
Comprehensive income:
Net income$302,760 $432,644 $387,268 
Other comprehensive loss:
Unrealized losses on interest rate swap contracts— (30,893)(4,676)
Amortization of interest rate swap contracts3,468 533 — 
Total other comprehensive income (loss)3,468 (30,360)(4,676)
Comprehensive income$306,228 $402,284 $382,592 
See accompanying Notes to Consolidated Financial Statements.
-63-

DUKE REALTY CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Years Ended December 31,
(in thousands)
 
202020192018
Cash flows from operating activities:
Net income$302,760 $432,644 $387,268 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements297,158 272,422 256,250 
Amortization of deferred leasing and other costs55,855 54,801 55,967 
Amortization of deferred financing costs9,155 6,536 5,867 
Straight-line rental income and expense, net(25,865)(21,197)(24,605)
Impairment charges5,626 — — 
Loss on debt extinguishment32,900 6,320 388 
Gain on involuntary conversion(4,312)(2,259)— 
Gains on land and property sales(138,269)(242,543)(219,114)
Third-party construction contracts, net(2,511)9,254 (15,400)
Other accrued revenues and expenses, net29,333 8,476 47,711 
Operating distributions received in excess of (less than) equity in earnings from unconsolidated joint ventures4,606 (18,556)(9,925)
Net cash provided by operating activities566,436 505,898 484,407 
Cash flows from investing activities:
Development of real estate investments(573,544)(446,801)(577,383)
Acquisition of buildings and related intangible assets(383,672)(210,224)(348,107)
Acquisition of land and other real estate assets(248,413)(388,202)(244,262)
Second generation tenant improvements, leasing costs and building improvements(41,099)(47,549)(53,474)
Other deferred leasing costs(45,545)(38,509)(39,380)
Other assets(4,868)(10,777)(14,535)
Proceeds from the repayments of notes receivable from property sales110,000 162,550 154,107 
Proceeds from land and property sales, net336,255 432,662 511,391 
Capital distributions from unconsolidated joint ventures876 26,272 23,133 
Capital contributions and advances to unconsolidated joint ventures(6,211)(34,496)(5,920)
Net cash used for investing activities
(856,221)(555,074)(594,430)
Cash flows from financing activities:
Proceeds from issuance of common shares, net187,856 272,761 34,913 
Proceeds from unsecured debt663,123 582,284 450,000 
Payments on unsecured debt(546,972)(255,812)(7,190)
Proceeds from secured debt financings18,400 — — 
Payments on secured indebtedness including principal amortization(13,457)(45,515)(232,234)
Borrowings (repayments) on line of credit, net295,000 (30,000)30,000 
Distributions to common shareholders (355,287)(318,702)(291,502)
Distributions to noncontrolling interests, net(3,347)(2,648)(2,456)
Tax payments on stock-based compensation awards(4,360)(6,825)(8,459)
Change in book cash overdrafts1,941 138 (22,088)
Cash settlement of interest rate swaps— (35,569)— 
Other financing activities163 (10,183)— 
Deferred financing costs(7,483)(4,839)(9,071)
Net cash provided by (used for) financing activities235,577 145,090 (58,087)
Net (decrease) increase in cash, cash equivalents and restricted cash(54,208)95,914 (168,110)
Cash, cash equivalents and restricted cash at beginning of year121,431 25,517 193,627 
Cash, cash equivalents and restricted cash at end of year$67,223 $121,431 $25,517 
Non-cash activities:
Lease liabilities arising from right-of-use assets$20,883 $40,467 $— 
Carrying amount of pre-existing ownership interest in acquired property$— $— $5,034 
Non-cash property contribution from noncontrolling interests$— $— $3,200 
Assumption of indebtedness and other liabilities in real estate acquisitions$39,966 $— $— 
Conversion of Limited Partner Units to common shares$— $1,624 $(269)
See accompanying Notes to Consolidated Financial Statements.
-64-

DUKE REALTY CORPORATION AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
(in thousands, except per share data)
 
 Common Shareholders  
 Common
Stock		Additional
Paid-in
Capital		Accumulated
Other
Comprehensive
Income (Loss)		Distributions
in Excess of
Net Income		Non-
Controlling
Interests		Total
Balance at December 31, 2017$3,564 $5,205,316 $— $(676,036)$41,534 $4,574,378 
Net income— — — 383,729 3,539 387,268 
Other comprehensive loss— — (4,676)— — (4,676)
Issuance of common shares12 34,901 — — — 34,913 
Contributions from noncontrolling interests— — — — 3,475 3,475 
Stock-based compensation plan activity8 4,432 — (1,278)8,956 12,118 
Conversion of Limited Partner Units5 (274)— — 269 — 
Distributions to common shareholders ($0.815 per share)— — — (291,502)— (291,502)
Distributions to noncontrolling interests— — — — (2,731)(2,731)
Balance at December 31, 2018$3,589 $5,244,375 $(4,676)$(585,087)$55,042 $4,713,243 
Net income— — — 428,972 3,672 432,644 
Other comprehensive loss— — (30,360)— — (30,360)
Issuance of common shares83 272,678 — — — 272,761 
Contributions from noncontrolling interests— — — — 312 312 
Stock-based compensation plan activity7 6,787 — (1,175)7,703 13,322 
Conversion of Limited Partner Units 1 1,623 — — (1,624)— 
Distributions to common shareholders ($0.88 per share)— — — (318,702)— (318,702)
Distributions to noncontrolling interests— — — — (2,960)(2,960)
Balance at December 31, 2019$3,680 $5,525,463 $(35,036)$(475,992)$62,145 $5,080,260 
Net income— — — 299,915 2,845 302,760 
Other comprehensive income— — 3,468 — — 3,468 
Issuance of common shares50 187,806 — — — 187,856 
Contributions from noncontrolling interests— — — — 200 200 
Stock-based compensation plan activity3 10,057 — (1,155)9,833 18,738 
Distributions to common shareholders ($0.96 per share)— — — (355,287)— (355,287)
Distributions to noncontrolling interests— — — — (3,547)(3,547)
Balance at December 31, 2020$3,733 $5,723,326 $(31,568)$(532,519)$71,476 $5,234,448 
See accompanying Notes to Consolidated Financial Statements.
-65-

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Balance Sheets
As of December 31,
(in thousands)
 
20202019
ASSETS
Real estate investments:
Real estate assets$8,745,155 $7,993,377 
Construction in progress695,219 550,926 
Investments in and advances to unconsolidated joint ventures131,898 133,074 
Undeveloped land291,614 254,537 
9,863,886 8,931,914 
Accumulated depreciation(1,659,308)(1,480,461)
Net real estate investments8,204,578 7,451,453 
Real estate investments and other assets held-for-sale67,946 18,463 
Cash and cash equivalents6,309 110,891 
Accounts receivable15,204 20,349 
Straight-line rent receivable153,943 129,344 
Receivables on construction contracts, including retentions30,583 25,607 
Deferred leasing and other costs, net of accumulated amortization of $204,122 and $203,857329,765 320,444 
Restricted cash held in escrow for like-kind exchange47,682 1,673 
Notes receivable from property sales— 110,000 
Other escrow deposits and other assets255,384 232,338 
$9,111,394 $8,420,562 
LIABILITIES AND EQUITY
Indebtedness:
Secured debt, net of deferred financing costs of $343 and $164$64,074 $34,023 
Unsecured debt, net of deferred financing costs of $32,763 and $19,2583,025,977 2,880,742 
Unsecured line of credit295,000 — 
3,385,051 2,914,765 
Liabilities related to real estate investments held-for-sale7,740 887 
Construction payables and amounts due subcontractors, including retentions62,332 68,840 
Accrued real estate taxes76,501 69,042 
Accrued interest18,363 14,181 
Other liabilities269,806 223,680 
Tenant security deposits and prepaid rents57,153 48,907 
Total liabilities3,876,946 3,340,302 
Partners’ equity:
Common equity (373,258 and 367,950 General Partner Units issued and outstanding, respectively)5,194,540 5,053,151 
Limited Partners' common equity (3,326 and 3,029 Limited Partner Units issued and outstanding, respectively)66,874 57,575 
Accumulated other comprehensive loss(31,568)(35,036)
     Total partners' equity5,229,846 5,075,690 
Noncontrolling interests4,602 4,570 
     Total equity5,234,448 5,080,260 
 $9,111,394 $8,420,562 

See accompanying Notes to Consolidated Financial Statements.

-66-

DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income
For the Years Ended December 31,
(in thousands, except per unit amounts)
 202020192018
Revenues:
Rental and related revenue$929,194 $855,833 $785,319 
General contractor and service fee revenue64,004 117,926 162,551 
993,198 973,759 947,870 
Expenses:
Rental expenses76,639 75,584 71,436 
Real estate taxes149,295 129,520 125,269 
General contractor and other services expenses57,976 111,566 153,909 
Depreciation and amortization353,013 327,223 312,217 
636,923 643,893 662,831 
Other operating activities:
Equity in earnings of unconsolidated joint ventures11,944 31,406 21,444 
Gain on sale of properties127,700 234,653 204,988 
Gain on land sales10,458 7,445 10,334 
Other operating expenses(8,209)(5,318)(5,231)
Impairment charges(5,626)— — 
Non-incremental costs related to successful leases(12,292)(12,402)— 
General and administrative expenses(62,404)(60,889)(56,218)
61,571 194,895 175,317 
Operating income417,846 524,761 460,356 
Other income (expenses):
Interest and other income, net1,721 9,941 17,234 
Interest expense(93,442)(89,756)(85,006)
Loss on debt extinguishment(32,900)(6,320)(388)
Gain on involuntary conversion4,312 2,259 — 
Income from continuing operations before income taxes297,537 440,885 392,196 
Income tax benefit (expense)5,112 (8,686)(8,828)
Income from continuing operations302,649 432,199 383,368 
Discontinued operations:
Income before gain on sales and income taxes— — 108 
Gain on sale of properties111 445 3,792 
Income from discontinued operations111 445 3,900 
Net income302,760 432,644 387,268 
Net loss (income) attributable to noncontrolling interests(182)6 (11)
Net income attributable to common unitholders$302,578 $432,650 $387,257 
Basic net income per Common Unit:
Continuing operations attributable to common unitholders$0.81 $1.18 $1.06 
Discontinued operations attributable to common unitholders— — 0.01 
Total$0.81 $1.18 $1.07 
Diluted net income per Common Unit:
Continuing operations attributable to common unitholders$0.80 $1.18 $1.06 
Discontinued operations attributable to common unitholders— — 0.01 
Total$0.80 $1.18 $1.07 
Weighted average number of Common Units outstanding373,360 365,352 360,859 
Weighted average number of Common Units and potential dilutive securities374,156 367,339 363,297 
Comprehensive income:
Net income$302,760 $432,644 $387,268 
Other comprehensive loss:
Unrealized losses on interest rate swap contracts— (30,893)(4,676)
Amortization of interest rate swap contracts3,468 533 — 
Total other comprehensive income (loss)3,468 (30,360)(4,676)
Comprehensive income$306,228 $402,284 $382,592 
See accompanying Notes to Consolidated Financial Statements.
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DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Years Ended December 31,
(in thousands)
 
202020192018
Cash flows from operating activities:
Net income$302,760 $432,644 $387,268 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of buildings and tenant improvements297,158 272,422 256,250 
Amortization of deferred leasing and other costs55,855 54,801 55,967 
Amortization of deferred financing costs9,155 6,536 5,867 
Straight-line rental income and expense, net(25,865)(21,197)(24,605)
Impairment charges5,626 — — 
Loss on debt extinguishment32,900 6,320 388 
Gain on involuntary conversion(4,312)(2,259)— 
Gains on land and property sales(138,269)(242,543)(219,114)
Third-party construction contracts, net(2,511)9,254 (15,400)
Other accrued revenues and expenses, net29,333 8,476 47,711 
Operating distributions received in excess of (less than) equity in earnings from unconsolidated joint ventures4,606 (18,556)(9,925)
Net cash provided by operating activities566,436 505,898 484,407 
Cash flows from investing activities:
Development of real estate investments(573,544)(446,801)(577,383)
Acquisition of buildings and related intangible assets(383,672)(210,224)(348,107)
Acquisition of land and other real estate assets(248,413)(388,202)(244,262)
Second generation tenant improvements, leasing costs and building improvements(41,099)(47,549)(53,474)
Other deferred leasing costs(45,545)(38,509)(39,380)
Other assets(4,868)(10,777)(14,535)
Proceeds from the repayments of notes receivable from property sales110,000 162,550 154,107 
Proceeds from land and property sales, net336,255 432,662 511,391 
Capital distributions from unconsolidated joint ventures876 26,272 23,133 
Capital contributions and advances to unconsolidated joint ventures(6,211)(34,496)(5,920)
Net cash used for investing activities(856,221)(555,074)(594,430)
Cash flows from financing activities:
Contributions from the General Partner187,856 272,761 34,913 
Proceeds from unsecured debt663,123 582,284 450,000 
Payments on unsecured debt(546,972)(255,812)(7,190)
Proceeds from secured debt financings18,400 — — 
Payments on secured indebtedness including principal amortization(13,457)(45,515)(232,234)
Borrowings (repayments) on line of credit, net295,000 (30,000)30,000 
Distributions to common unitholders (358,484)(321,469)(294,233)
(Distributions to) contributions from noncontrolling interests, net(150)119 275 
Tax payments on stock-based compensation awards(4,360)(6,825)(8,459)
Change in book cash overdrafts1,941 138 (22,088)
Cash settlement of interest rate swaps— (35,569)— 
Other financing activities163 (10,183)— 
Deferred financing costs(7,483)(4,839)(9,071)
Net cash provided by (used for) financing activities235,577 145,090 (58,087)
Net (decrease) increase in cash, cash equivalents and restricted cash(54,208)95,914 (168,110)
Cash, cash equivalents and restricted cash at beginning of year121,431 25,517 193,627 
Cash, cash equivalents and restricted cash at end of year$67,223 $121,431 $25,517 
Non-cash activities:
Lease liabilities arising from right-of-use assets$20,883 $40,467 $— 
Carrying amount of pre-existing ownership interest in acquired property$— $— $5,034 
Non-cash property contribution from noncontrolling interests$— $— $3,200 
Assumption of indebtedness and other liabilities in real estate acquisitions$39,966 $— $— 
Conversion of Limited Partner Units to common shares of the General Partner$— $1,624 $(269)
See accompanying Notes to Consolidated Financial Statements.
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DUKE REALTY LIMITED PARTNERSHIP AND SUBSIDIARIES
Consolidated Statements of Changes in Equity
(in thousands, except per unit data) 
 Common Unitholders  
GeneralLimitedAccumulated
PartnerPartners'OtherTotal
 CommonCommonComprehensive  Partners'NoncontrollingTotal
EquityEquityIncome (Loss)EquityInterestsEquity
Balance at December 31, 2017$4,532,844 $40,563 $— $4,573,407 $971 $4,574,378 
Net income383,729 3,528 — 387,257 11 387,268 
Other comprehensive loss— — (4,676)(4,676)— (4,676)
Capital contribution from the General Partner34,913 — — 34,913 — 34,913 
Stock-based compensation plan activity3,162 8,956 — 12,118 — 12,118 
Contributions from noncontrolling interests— — — — 3,475 3,475 
Conversion of Limited Partner Units(269)269 — — — — 
Distributions to Partners ($0.815 per Common Unit)(291,502)(2,731)— (294,233)— (294,233)
Balance at December 31, 2018$4,662,877 $50,585 $(4,676)$4,708,786 $4,457 $4,713,243 
Net income428,972 3,678 — 432,650 (6)432,644 
Other comprehensive loss— — (30,360)(30,360)— (30,360)
Capital contribution from the General Partner272,761 — — 272,761 — 272,761 
Stock-based compensation plan activity5,619 7,703 — 13,322 — 13,322 
Contributions from noncontrolling interests— — — — 312 312 
Conversion of Limited Partner Units1,624 (1,624)— — — — 
Distributions to Partners ($0.88 per Common Unit)(318,702)(2,767)— (321,469)— (321,469)
Distributions to noncontrolling interests— — — — (193)(193)
Balance at December 31, 2019$5,053,151 $57,575 $(35,036)$5,075,690 $4,570 $5,080,260 
Net income299,915 2,663 — 302,578 182 302,760 
Other comprehensive income— — 3,468 3,468 — 3,468 
Capital contribution from the General Partner187,856 — — 187,856 — 187,856 
Stock-based compensation plan activity8,905 9,833 — 18,738 — 18,738 
Contributions from noncontrolling interests— — — — 200 200 
Distributions to Partners ($0.96 per Common Unit)(355,287)(3,197)— (358,484)— (358,484)
Distributions to noncontrolling interests— — — — (350)(350)
Balance at December 31, 2020$5,194,540 $66,874 $(31,568)$5,229,846 $4,602 $5,234,448 
See accompanying Notes to Consolidated Financial Statements.






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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)The Company

The General Partner was formed in 1985, and we believe that it qualifies as a REIT under the provisions of the Code. The Partnership was formed on October 4, 1993, when the General Partner contributed all of its properties and related assets and liabilities, together with the net proceeds from an offering of additional shares of its common stock, to the Partnership. Simultaneously, the Partnership completed the acquisition of Duke Associates, a full-service commercial real estate firm operating in the Midwest whose operations began in 1972.
The General Partner is the sole general partner of the Partnership, owning approximately 99.1% of the Common Units at December 31, 2020. The remaining 0.9% of the Common Units are owned by limited partners. As the sole general partner of the Partnership, the General Partner has full, exclusive and complete responsibility and discretion in the day-to-day management and control of the Partnership. The General Partner and the Partnership are operated as one enterprise. The management of the General Partner consists of the same members as the management of the Partnership. As the sole general partner with control of the Partnership, the General Partner consolidates the Partnership for financial reporting purposes, and the General Partner does not have any significant assets other than its investment in the Partnership. Therefore, the assets and liabilities of the General Partner and the Partnership are substantially the same.
Limited partners have the right to redeem their Limited Partner Units, subject to certain restrictions. Pursuant to the Partnership Agreement, the General Partner is obligated to redeem the Limited Partner Units in shares of its common stock, unless it determines in its reasonable discretion that the issuance of shares of its common stock could cause it to fail to qualify as a REIT. Each Limited Partner Unit shall be redeemed for one share of the General Partner's common stock, or, in the event that the issuance of shares could cause the General Partner to fail to qualify as a REIT, cash equal to the fair market value of one share of the General Partner's common stock at the time of redemption, in each case, subject to certain adjustments described in the Partnership Agreement. The Limited Partner Units are not required, per the terms of the Partnership Agreement, to be redeemed in registered shares of the General Partner.
As of December 31, 2020, we owned and operated a portfolio primarily consisting of industrial properties and provided real estate services to third-party owners.
Substantially all of our Rental Operations (see Note 10) are conducted through the Partnership. We conduct our Service Operations (see Note 10) through Duke Realty Services, LLC, Duke Realty Services Limited Partnership and Duke Construction Limited Partnership ("DCLP"), which are consolidated entities that are 100% owned by a combination of the General Partner and the Partnership. DCLP is owned through a taxable REIT subsidiary.

(2)Summary of Significant Accounting Policies

Principles of Consolidation
The consolidated financial statements include our accounts and the accounts of our majority-owned or controlled subsidiaries. The equity interests in these controlled subsidiaries not owned by us are reflected as noncontrolling interests in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in the consolidated financial statements. Investments in entities that we do not control, and variable interest entities ("VIEs") in which we are not the primary beneficiary (to the extent applicable), are not consolidated and are reflected as investments in unconsolidated joint ventures under the equity method of reporting.
Due to the fact that the Limited Partners do not have kick out rights, or substantive participating rights, the Partnership is a VIE. Because the General Partner holds majority ownership and exercises control over every aspect of the Partnership's operations, the General Partner has been determined as the primary beneficiary of the Partnership and, therefore, consolidates the Partnership.
The assets and liabilities of the General Partner and the Partnership are substantially the same, as the General Partner does not have any significant assets other than its investment in the Partnership.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Reclassifications
There have been no amounts in the accompanying consolidated financial statements reclassified to conform to the 2020 consolidated financial statement presentation.
Real Estate Investments
Rental real property, including land, land improvements, buildings and tenant improvements, are included in real estate investments and are generally stated at cost. Construction in process and undeveloped land are included in real estate investments and are stated at cost. Real estate investments also include our equity interests in unconsolidated joint ventures that own and operate rental properties and hold land for development.
Depreciation
Buildings and land improvements are depreciated on the straight-line method over their estimated lives not to exceed 40 and 15 years, respectively, for properties that we develop, and not to exceed 30 and 10 years, respectively, for acquired properties. Tenant improvement costs are depreciated using the straight-line method over the shorter of the useful life of the asset or term of the related lease.
Cost Capitalization
Direct and certain indirect costs, including interest, clearly associated with the development, construction or expansion of real estate investments are capitalized as a cost of the property. Direct costs include all leasing commissions paid to third parties for new leases or lease renewals. We capitalize a portion of our indirect costs associated with our construction and development efforts. In assessing the amount of direct and indirect costs to be capitalized, allocations are made based on estimates of the actual amount of time spent in each activity. We do not capitalize any costs attributable to downtime or to unsuccessful projects.
Effective on January 1, 2019, only costs that are incremental to executing a lease are capitalizable. Prior to January 1, 2019, we capitalized a portion of our indirect costs associated with our leasing efforts based on the amount of time spent on leasing activities.
We capitalize interest and direct and indirect project costs associated with the initial construction of a property up to the time the property is substantially complete and ready for its intended use. In addition, we capitalize costs, including real estate taxes, insurance and utilities, that have been allocated to vacant space based on the square footage of the portion of the building not held available for immediate occupancy during the extended lease-up periods after construction of the building shell has been completed if costs are being incurred to ready the vacant space for its intended use. If costs and activities incurred to ready the vacant space cease, then cost capitalization is also discontinued until such activities are resumed. Once necessary work has been completed on a vacant space, project costs are no longer capitalized.
We cease capitalization of all project costs on extended lease-up periods when significant activities have ceased, which does not exceed the shorter of a one-year period after the completion of the building shell or when the property attains 90% occupancy.
Impairment
We evaluate our real estate assets, with the exception of those that are classified as held-for-sale, for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If such an evaluation is considered necessary, we compare the carrying amount of that real estate asset, or asset group, with the expected undiscounted cash flows that are directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of that asset, or asset group. Our estimate of the expected future cash flows used in testing for impairment is based on, among other things, our estimates regarding future market conditions, rental rates, occupancy levels, costs of tenant improvements, leasing commissions and other tenant concessions, assumptions regarding the residual value of our properties at the end of our anticipated holding period and the length of our anticipated holding period and is, therefore, subjective by nature. These assumptions could differ materially from actual results. If our strategy changes or if market conditions otherwise dictate a reduction in
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

the holding period and an earlier sale date, an impairment loss could be recognized and such loss could be material. To the extent the carrying amount of a real estate asset, or asset group, exceeds the associated estimate of undiscounted cash flows, an impairment loss is recorded to reduce the carrying value of the asset to its fair value.
The determination of the fair value of real estate assets is also highly subjective, especially in markets where there is a lack of recent comparable transactions. We primarily utilize the income approach to estimate the fair value of our income producing real estate assets. We utilize marketplace participant assumptions to estimate the fair value of a real estate asset when an impairment charge is required to be measured. The estimation of future cash flows, as well as the selection of the discount rate and exit capitalization rate used in applying the income approach, are highly subjective measures in estimating fair value.
Real estate assets classified as held-for-sale are reported at the lower of their carrying value or their fair value, less estimated costs to sell. Once a property is designated as held-for-sale, no further depreciation expense is recorded.
Purchase Accounting
Our acquisitions of properties have been accounted for as asset acquisitions as they have not met the definition of a business. Transaction costs related to asset acquisitions are capitalized. To the extent that an acquired property meets the definition of a business, we expense acquisition related costs immediately as period costs.
To the extent that we gain control of real estate properties that are accounted for as asset acquisitions, as opposed to business combinations, we accumulate the costs of pre-existing equity interest and consideration paid for additional interest acquired and we do not remeasure our pre-existing equity interest. Generally contingencies arising from an asset acquisition are only recognized when the contingency is paid or becomes payable.
We allocate the purchase price of asset acquisitions that meet the definition of a business to tangible and identified intangible assets based on their relative fair values, using all pertinent information available at the date of acquisition. Capitalized acquisition costs are also included in the total cost basis of acquired properties that are asset acquisitions. The allocation to tangible assets (buildings, tenant improvements and land) is based upon management's determination of the value of the property as if it were vacant. This “as-if vacant” value is estimated using an income, or discounted cash flow, approach that relies upon internally determined assumptions that we believe are consistent with current market conditions for similar properties. The most important assumptions in determining the allocation of the purchase price to tangible assets are the exit capitalization rate, estimated market rents and the fair value of the underlying land. The purchase price of real estate assets is also allocated to intangible assets consisting of the above or below market component of in-place leases and the value of in-place leases.
The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate which reflects the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be received pursuant to the lease over its remaining term and (ii) management's estimate of the amounts that would be received using fair market rates over the remaining term of the lease. The amounts allocated to above market leases are included in deferred leasing and other costs in the balance sheet and below market leases are included in other liabilities in the balance sheet; both are amortized to rental income over the remaining terms of the respective leases.
Factors considered in determining the value allocable to in-place leases include estimates, during hypothetical expected lease-up periods, of space that is actually leased at the time of acquisition, of lost rent at market rates, fixed operating costs that will be recovered from tenants and theoretical leasing commissions required to execute similar leases. These intangible assets are included in deferred leasing and other costs in the balance sheet and are amortized over the remaining term of the existing lease.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Joint Ventures
We have equity interests in unconsolidated joint ventures that primarily own and operate rental properties or hold land for development. These unconsolidated joint ventures are primarily engaged in the operation and development of industrial real estate properties.
We consolidate joint ventures that are considered to be VIEs where we are the primary beneficiary. We analyze our investments in joint ventures to determine if the joint venture is considered a VIE and would require consolidation. We (i) evaluate the sufficiency of the total equity investment at risk, (ii) review the voting rights and decision-making authority of the equity investment holders as a group and whether there are limited partners (or similar owning entities) that lack substantive participating or kick out rights, guaranteed returns, protection against losses, or capping of residual returns within the group and (iii) establish whether activities within the venture are on behalf of an investor with disproportionately few voting rights in making this VIE determination.
To the extent that we own interests in a VIE and we (i) have the power to direct the activities that most significantly impact the economic performance of the VIE and (ii) have the obligation or rights to absorb losses or receive benefits that could potentially be significant to the VIE, then we would be determined to be the primary beneficiary and would consolidate the VIE. To the extent that we own interests in a VIE, then at each reporting period, we re-assess our conclusions as to which, if any, party within the VIE is considered the primary beneficiary. Consolidated joint ventures that are VIE's were not significant in any period presented in these consolidated financial statements.
To the extent that our joint ventures do not qualify as VIEs, they are consolidated if we control them through majority ownership interests or if we are the managing entity (general partner or managing member) and our partner does not have substantive participating rights. Control is further demonstrated by our ability to unilaterally make significant operating decisions, refinance debt and sell the assets of the joint venture without the consent of the non-managing entity and the inability of the non-managing entity to remove us from our role as the managing entity. Consolidated joint ventures that are not VIEs are not significant in any period presented in these consolidated financial statements.
We use the equity method of accounting for those joint ventures where we exercise significant influence but do not have control. Under the equity method of accounting, our investment in each joint venture is included on our balance sheet; however, the assets and liabilities of the joint ventures for which we use the equity method are not included on our balance sheet.
To the extent that we contribute assets to a joint venture, our investment in the joint venture is recorded at our cost basis in the assets that were contributed to the joint venture. To the extent that our cost basis is different than the basis reflected at the joint venture level, the basis difference is amortized over the life of the related asset and included in our share of equity in net income of the joint venture. We recognize gains on the contribution or sale of real estate to joint ventures, relating solely to the outside partner's interest, to the extent the economic substance of the transaction is a sale.
When circumstances indicate there may have been a reduction in the value of an equity investment, we evaluate whether the loss in value is other than temporary. If we conclude it is other than temporary, we recognize an impairment charge to reflect the equity investment at fair value.
There were no unconsolidated joint ventures, in which we have any recognized assets or liabilities or have retained any economic exposure to loss at December 31, 2020 that met the criteria to be considered VIEs.
Cash Equivalents
Investments with an original maturity of three months or less are classified as cash equivalents.
Valuation of Receivables
Upon the adoption of ASC 842 on January 1, 2019, our determination of the adequacy of our allowances for tenant receivables includes a binary assessment of whether or not the amounts due under a tenant’s lease agreement are probable of collection. For such amounts that are deemed probable of collection, revenue continues to be recorded
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

on a straight-line basis over the lease term. For such amounts that are deemed not probable of collection, revenue is recorded as the lesser of (i) the amount which would be recognized on a straight-line basis or (ii) cash that has been received from the tenant, with any tenant and deferred rent receivable balances charged as a direct write-off against rental income in the period of the change in the collectability determination.
Deferred Costs
Deferred Financing Costs
Costs incurred in connection with obtaining financing are deferred and are amortized to interest expense over the term of the related loan. The costs for issuing debt, other than lines of credit, are presented on the consolidated balance sheets as a direct deduction from the debt's carrying value, while debt issuance costs related to the Partnership's unsecured line of credit are presented as assets on the consolidated balance sheets, as part of other escrow deposits and other assets.
Lease Related Costs and Acquired Lease-Related Intangible Assets
Effective on January 1, 2019, only costs that are directly incremental to executing a lease are capitalized.
Acquired lease-related intangible assets consist of above market lease assets and the value allocable to in-place leases. Above market lease assets are amortized as a reduction to rental income over the remaining terms of the respective leases. In-place lease intangible assets are amortized on a straight-line basis and included within depreciation and amortization in the consolidated statements of operations and comprehensive income.
Deferred leasing costs and acquired lease-related intangible assets at December 31, 2020 and 2019, excluding amounts classified as held-for-sale, were as follows (in thousands):
20202019
Deferred leasing costs$359,646 $333,706 
Acquired lease-related intangible assets174,241 190,595 
$533,887 $524,301 
Accumulated amortization - deferred leasing costs$(120,756)$(109,843)
Accumulated amortization - acquired lease-related intangible assets(83,366)(94,014)
Total$329,765 $320,444 
Amounts recorded related to amortization expense for in-place leases for the years ended December 31, 2020, 2019 and 2018 totaled $19.5 million, $22.0 million and $25.0 million, respectively. Charges to rental income related to the amortization of above market lease assets for the years ended December 31, 2020, 2019 and 2018 totaled $639,000, $703,000 and $777,000, respectively.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The expected future amortization, or charge to rental income, of acquired lease-related intangible assets is summarized in the table below (in thousands):
YearAmortization ExpenseCharge to Rental Income
2021$18,925 $363 
202215,412 353 
202313,603 353 
202411,014 59 
20258,866 — 
Thereafter21,927 — 
$89,747 $1,128 
Noncontrolling Interests
Noncontrolling interests relate to the minority ownership interests in the Partnership and interests in consolidated property partnerships that are not wholly owned by the General Partner or the Partnership. Noncontrolling interests are subsequently adjusted for additional contributions, distributions to noncontrolling holders and the noncontrolling holders' proportionate share of the net earnings or losses of each respective entity. We report noncontrolling interests as a component of total equity.
When a Common Unit of the Partnership is redeemed (Note 1), the change in ownership is treated as an equity transaction by the General Partner and there is no effect on its earnings or net assets.
Revenue Recognition
On January 1, 2018, we concurrently adopted ASC 606, Revenue from Contracts with Customers ("ASC 606") and ASC 610-20, Other Income: Gains and Losses from the De-recognition of Non-financial Assets ("ASC 610-20") using a modified retrospective ("cumulative effect") method of adoption. ASC 606 has superseded nearly all existing GAAP revenue recognition guidance, although its scope excludes lease contracts, which represent our primary source of revenue. The standard’s core principle is that a company will recognize revenue when it satisfies performance obligations, by transferring promised goods or services to customers, in an amount that reflects the consideration to which the company expects to be entitled in exchange for fulfilling those performance obligations.
There was no cumulative adjustment recognized to beginning retained earnings as of January 1, 2018 as the result of adopting ASC 606 and ASC 610-20.
Rental and Related Revenue
Rental income from leases is recognized on a straight-line basis. If a lease provides for tenant improvements, we determine whether we or the tenant is the owner of the tenant improvements. When we are the owner of the tenant improvements, any tenant improvements funded by the tenant are treated as lease payments which are deferred and amortized as revenue over the lease term. When the tenant is the owner of the tenant improvements, and we fund such improvements, we record such tenant improvement allowances as lease incentives and amortize as a reduction of revenue over the lease term.
We record lease termination fees when a tenant has executed a definitive termination agreement with us and the payment of the termination fee is not subject to any material conditions that must be met or waived before the fee is due to us.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

General Contractor and Service Fee Revenue
Effective on January 1, 2018, general contractor and service fee revenues, as presented on the Consolidated Statements of Operations, are accounted for within the scope of ASC 606. General contractor and service fee revenues are comprised primarily of construction and development related revenues earned from third parties while acting in capacity of a developer, as a general contractor or a construction manager. There are other ancillary streams of revenue included in general contractor and service fee revenues (see Note 10), such as management fees earned from unconsolidated joint ventures, which are not significant.
Our construction arrangements are typically structured with only one performance obligation, which generally represents an obligation either to construct a new building or to construct fixtures in an existing building, and these single performance obligations are satisfied over time as construction progresses. We recognize revenue as we satisfy such performance obligations using the percentage of completion method, which is an input method allowed under ASC 606. Using this method, profits are recorded based on our estimates of the percentage of completion of individual contracts, commencing when the work performed under the contracts reaches a point where the final costs can be estimated with reasonable accuracy. The percentage of completion estimates are based on a comparison of the contract expenditures incurred to the estimated final costs. We believe the percentage of completion method is a faithful depiction of the transfer of goods and services as changes in job performance and estimated profitability, which result in revisions to costs and income and are recognized in the period in which the revisions are determined, have not historically been significant. We typically receive regular progress payments on the majority of our construction arrangements and such arrangements generally have an original duration of less than one year. As the result of the relatively short duration of our construction arrangements, we have elected to apply the optional disclosure exemptions, included in ASC 606, related to our remaining performance obligations for our in-process construction projects, for which any future variable consideration is not material. Changes in job performance, job conditions and estimated profitability may result in revisions to costs and income and are recognized in the period in which the revisions are determined. To the extent that a fixed-price contract is estimated to result in a loss, the loss is recorded immediately.
Opening and closing balances of construction receivables are presented separately on the Consolidated Balance Sheets. Under billed and over billed receivables on construction contracts totaled $16.6 million and $105,000, respectively, at December 31, 2020 and $16.5 million and $159,000, respectively, at December 31, 2019. Over billed receivables are included in other liabilities in the Consolidated Balance Sheets. We generally do not have any contract assets associated with our construction arrangements.
Management fees are based on a percentage of rental receipts of properties managed and are recognized as the rental receipts are collected. Maintenance fees are based upon established hourly rates and are recognized as the services are performed.
Property Sales
Only disposals representing a strategic shift in operations (for example, a disposal of a major geographic area or a major line of business) should be presented as discontinued operations in accordance with ASC 205-20, without consideration of significant continuing involvement.
Effective on January 1, 2018, gains on sales of properties, including partial sales, of non-financial assets (and in-substance non-financial assets) to non-customers are recognized in accordance with ASC 610-20, while the sale of non-financial assets with customers are governed by ASC 606. The only difference in the treatment of sales to customers and non-customers is the presentation in the Consolidated Statements of Operations (revenue and expense is reported when the sale is to a customer and net gain or loss is reported when the sale is to a non-customer). Based on the nature of our business, our property sales generally represent transactions with non-customers. In the typical course of our business, sales of non-financial assets represent only one performance obligation and are recognized when an enforceable contract is in place, collectability is ensured and control is transferred to the buyer.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Under ASC 610-20 we are required to recognize a full gain or loss in a partial sale of non-financial assets, to the extent control is not retained. Any noncontrolling interest retained by the seller would, accordingly, be measured at fair value. We have primarily disposed of property and land in all cash transactions with no contingencies and no future involvement in the operations, and therefore, the adoption of ASC 610-20 has not significantly impacted the recognition of property and land sales.
Leases
On January 1, 2019, we adopted the new lease standard, ASC 842, on a prospective basis. ASC 842 has superseded all previous GAAP guidance for accounting for leases.
As part of adoption, we elected the package of practical expedients available for implementation, which included: (i) relief from re-assessing whether an expired or existing contract meets the definition of a lease, (ii) relief from re-assessing the classification of expired or existing leases at the adoption date and (iii) allowing previously capitalized initial direct leasing costs to continue to be amortized. Due in large part to electing these practical expedients, the adoption of ASC 842 did not result in recording a cumulative adjustment to the opening balance of distributions in excess of net income.
As a lessor, our primary business is the development, acquisition, and operation of industrial real estate properties that are held for investment and leased to tenants. We manage residual risk through investing in properties that we believe will appreciate in value over time. We also perform a credit analysis for tenants prior to leases being executed, and on an ongoing basis, to ensure collectability is probable prior to recognizing lease revenues on an accrual basis.
For lessors, the accounting under ASC 842 remains largely unchanged with the notable exception that ASC 842 requires that lessors expense certain initial direct costs, which were capitalizable under prior leasing standards, as incurred. Under ASC 842, only the incremental costs of signing a lease are capitalizable. Non-incremental costs attributable to successful leases represent internal costs allocable to successful leasing activities and exclude estimated costs related to downtime and/or unsuccessful deals. These costs primarily consist of compensation and other benefits for internal leasing and legal personnel. These costs are not capitalizable "incremental costs" in the context of the applicable lease accounting rules, but we believe separate presentation on the Consolidated Statements of Operations provides useful information for purposes of comparability with economically similar success-based costs incurred by other organizations that outsource their leasing functions, which are generally capitalizable.
ASC 842 also requires lessors to exclude certain lessor costs, such as real estate taxes and insurance, that are paid directly by lessees to third parties from rental revenue and the associated rental expense. Lessor costs that are paid by the lessor and reimbursed by the lessee continue to be recorded through rental revenue and the associated rental expense.
ASC 842 allows lessors an additional practical expedient to not separate rental recovery revenue related to lease-related services from the associated rental revenue related to the lease when certain criteria are met. The lease-related services provided to our tenants include property management, common area maintenance ("CAM") and utilities. We assessed the applicable criteria, concluding that the timing and straight-line pattern of transfer to the lessees for rental recovery revenue from our lease-related services and revenue from the underlying leases are the same and that lease classification does not change, and elected to apply this additional practical expedient.
As a lessee, ASC 842 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification determines whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use ("ROU") asset and a lease liability for all leases with a term of greater than 12 months regardless of classification.
See Note 3 for further disclosure on our leases as a lessor and lessee.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net Income Per Common Share or Common Unit
Basic net income per common share or Common Unit is computed by dividing net income attributable to common shareholders or common unitholders, less dividends or distributions on share-based awards expected to vest (referred to as "participating securities" and primarily composed of unvested restricted stock units), by the weighted average number of common shares or Common Units outstanding for the period.
Diluted net income per common share is computed by dividing the sum of net income attributable to common shareholders and the noncontrolling interest in earnings allocable to Limited Partner Units (to the extent the Limited Partner Units are dilutive), less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of common shares outstanding and, to the extent they are dilutive, weighted average number of Limited Partner Units outstanding and any potential dilutive securities for the period. Diluted net income per Common Unit is computed by dividing the net income attributable to common unitholders, less dividends or distributions on participating securities that are anti-dilutive, by the sum of the weighted average number of Common Units outstanding and any potential dilutive securities for the period.
The following table reconciles the components of basic and diluted net income per common share or Common Unit (in thousands): 
202020192018
General Partner
Net income attributable to common shareholders$299,915 $428,972 $383,729 
Less: Dividends on participating securities(1,447)(1,487)(1,675)
Basic net income attributable to common shareholders298,468 427,485 382,054 
Add back dividends on dilutive participating securities— 1,487 1,675 
Noncontrolling interest in earnings of common unitholders2,663 3,678 3,528 
Diluted net income attributable to common shareholders$301,131 $432,650 $387,257 
Weighted average number of common shares outstanding370,057 362,234 357,569 
Weighted average Limited Partner Units outstanding3,303 3,118 3,290 
Other potential dilutive shares796 1,987 2,438 
Weighted average number of common shares and potential dilutive securities374,156 367,339 363,297 
Partnership
Net income attributable to common unitholders$302,578 $432,650 $387,257 
Less: Distributions on participating securities(1,447)(1,487)(1,675)
Basic net income attributable to common unitholders$301,131 $431,163 $385,582 
Add back distributions on dilutive participating securities— 1,487 1,675 
Diluted net income attributable to common unitholders$301,131 $432,650 $387,257 
Weighted average number of Common Units outstanding373,360 365,352 360,859 
Other potential dilutive units796 1,987 2,438 
Weighted average number of Common Units and potential dilutive securities374,156 367,339 363,297 
The following table summarizes the data that is excluded from the computation of net income per common share or Common Unit as a result of being anti-dilutive (in thousands):
202020192018
General Partner and Partnership
Other potential dilutive shares or units:
Anti-dilutive outstanding potential shares or units under fixed stock option and other stock-based compensation plans— — — 
Anti-dilutive outstanding participating securities1,621 — — 
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Federal Income Taxes
General Partner
The General Partner has elected to be taxed as a REIT under the Code, as amended. To qualify as a REIT, the General Partner must meet a number of organizational and operational requirements, including a requirement to distribute at least 90% of its REIT taxable income to its shareholders. Management intends to continue to adhere to these requirements and to maintain the General Partner's REIT status. As a REIT, the General Partner is entitled to a tax deduction for the dividends it pays to shareholders. Accordingly, the General Partner generally will not be subject to federal income taxes as long as it currently distributes to shareholders an amount equal to or in excess of its taxable income. The General Partner is, however, generally subject to federal income taxes on any taxable income that is not currently distributed to its shareholders. If the General Partner fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes and may not be able to qualify as a REIT for four subsequent taxable years.
REIT qualification reduces, but does not eliminate, the amount of state and local taxes we pay. In addition, our financial statements include the operations of taxable corporate subsidiaries that are not entitled to a dividends paid deduction and are subject to federal, state and local income taxes. As a REIT, the General Partner may also be subject to certain federal excise taxes if it engages in certain types of transactions.
The following table reconciles the General Partner's net income to taxable income before the dividends paid deduction, and subject to the 90% distribution requirement, for the years ended December 31, 2020, 2019 and 2018 (in thousands): 
202020192018
Net income$302,760 $432,644 $387,268 
Book/tax differences39,566 (120,421)(97,079)
Taxable income before the dividends paid deduction342,326 312,223 290,189 
Less: capital gains(90,242)(62,513)(63,151)
Adjusted taxable income subject to the 90% distribution requirement$252,084 $249,710 $227,038 
The General Partner's dividends paid deduction is summarized below (in thousands): 
202020192018
Cash dividends paid$355,287 $318,702 $291,502 
Cash dividends declared and paid in subsequent year that apply to current year— 6,521 9,286 
Cash dividends declared and paid in current year that apply to previous year(6,521)(9,286)(7,901)
Dividends paid deduction348,766 315,937 292,887 
Less: Capital gain distributions(90,242)(62,513)(63,151)
Dividends paid deduction attributable to adjusted taxable income subject to the 90% distribution requirement$258,524 $253,424 $229,736 
Our tax return for the year ended December 31, 2020 has not been filed. The taxability information presented for our dividends paid in 2020 is based upon management’s estimate. Consequently, the taxability of dividends is subject to change. A summary of the designated tax characterization of the dividends paid by the General Partner for the years ended December 31, 2020, 2019 and 2018 is as follows:
202020192018
Common Shares
Ordinary income74.6 %80.7 %78.4 %
Capital gains25.4 %19.3 %21.6 %
100.0 %100.0 %100.0 %
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Partnership
For the Partnership, the allocated share of income and loss other than the operations of its taxable REIT subsidiary is included in the income tax returns of its partners; accordingly the only federal income taxes included in the accompanying consolidated financial statements of the Partnership are in connection with its taxable REIT subsidiary.
Deferred Tax Assets
A valuation allowance is in place for substantially all of the deferred tax assets of the taxable REIT subsidiary for all periods presented.  Based primarily on the projections of taxable income pursuant to our current operating strategy, management believes that it is more likely than not that the taxable REIT subsidiary will not generate sufficient taxable income to realize these deferred tax assets.  Income taxes are not material to our operating results or financial position. Our taxable REIT subsidiary has no significant net deferred income tax positions or unrecognized tax benefit items.
Cash Paid for Income Taxes
We received income tax refunds, net of federal, state and local income tax payments, of $308,000 in 2020. We paid federal, state and local income taxes, net of income tax refunds, of $7.8 million and $3.7 million in 2019 and 2018, respectively.
Fair Value Measurements
We estimate fair value using available market information and valuation methodologies. Assets and liabilities recorded at fair value on the consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:
Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities to which we have access.
Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals.
Level 3 inputs are unobservable inputs for the asset or liability, which are typically based on an entity's own assumptions, as there is little, if any, related market activity.
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset or liability.
Derivative Financial Instruments
We periodically enter into certain interest rate protection agreements to effectively convert or cap floating rate debt to a fixed rate, and to hedge anticipated future financing transactions, both of which qualify for cash flow hedge accounting treatment. We do not utilize derivative financial instruments for trading or speculative purposes. The entire effect of any hedging instruments and hedged items are presented in the same income statement line item.
If a derivative qualifies as a cash flow hedge, the gain or loss on the derivative is recorded in accumulated other comprehensive income or loss and subsequently reclassified into interest expense in the same period during which the hedged forecasted transaction affects earnings. For all hedging relationships, we formally document the hedging relationship and its risk-management objective and strategy for undertaking the hedge, the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instrument’s effectiveness in offsetting the hedged risk will be assessed prospectively and retrospectively.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Use of Estimates
The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

(3)Leases
Lease Income
Our leases generally include scheduled rent increases, but do not include variable payments based on indexes. Our rental revenue is primarily based on fixed, non-cancelable leases. Our variable rental revenue primarily consists of amounts recovered from lessees for property tax, insurance and CAM.
All revenues related to lease and lease-related services are included in, and comprise substantially all of, the caption "Rental and Related Revenue" on the Consolidated Statements of Operations and Comprehensive Income. The components of Rental and Related Revenue are as follows (in thousands):
Twelve Months Ended December 31,
202020192018
Rental revenue - fixed payments$692,753 $645,759 $587,187 
Rental revenue - variable payments (1)236,441 210,074 198,249 
Rental and related revenue$929,194 $855,833 $785,436 
(1) Primarily includes tenant recoveries for real estate taxes, insurance and CAM.
The future minimum rents due to us under non-cancelable operating leases are as follows (in thousands):

YearDecember 31, 2020
2021$724,044 
2022696,757
2023630,830
2024564,468
2025488,175
Thereafter2,042,940
$5,147,214 
Lessee Accounting
As of December 31, 2020, our lease arrangements, where we are the lessee, primarily consisted of office and ground leases. For these lease arrangements, we recognized ROU assets and the corresponding lease liabilities representing the discounted value of future lease payments required under ASC 842. In determining these amounts, we elected an available practical expedient that allows us, as a lessee, to not separate lease and non-lease components. Expenses recognized on these leases for the year ended December 31, 2020 were not material.
All of our office leases are classified as operating leases under ASC 842. Ground leases that were classified as operating leases prior to adoption of ASC 842 continue to be accounted for as operating leases by electing the practical expedient under ASC 842. In July 2020, we entered into a long-term ground lease which met the criteria to be classified as a finance lease. In December 2020, we entered into another long-term ground lease, for which a ROU asset and associated liability will be recognized when our construction commences in early 2021.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


As of December 31, 2020, a $38.9 million ROU asset associated with operating leases was included within Other Escrow Deposits and Other Assets and a corresponding lease liability of $42.9 million was included in Other Liabilities on our Consolidated Balance Sheets. As of December 31, 2019, total ROU assets and liabilities for operating leases were $40.5 million and $46.9 million, respectively. The following table summarizes the future lease payments (in thousands) to be made under non-cancellable operating lease arrangements:
YearDecember 31, 2020
2021$4,605 
20224,470
20234,128
20243,111
20251,427
Thereafter82,760
Total undiscounted operating lease payments$100,501 
Less: imputed interest57,627
Present value of operating lease payments$42,874 
The weighted average remaining lease term for our operating lease arrangements, on a combined basis as of December 31, 2020, was 33.7 years. The weighted average discount rate for our operating lease arrangements as of December 31, 2020 was 4.43%. As the discount rates implied in our operating lease arrangements were not readily determinable, we utilized our current credit ratings and credit yields observed from market traded securities with similar credit ratings to form a reasonable basis to establish secured borrowing rates when determining the present value of future operating lease payments.
As of December 31, 2020, a $19.2 million ROU asset associated with the finance lease was included within Other Escrow Deposits and Other Assets and a corresponding $19.4 million lease liability was included within Other Liabilities on our Consolidated Balance Sheets. The future lease payments (in thousands) under our finance lease as of December 31, 2020 for five years and thereafter are as follows:
YearDecember 31, 2020
2021$245 
2022847
2023864
2024881
2025899
Thereafter64,989
Total undiscounted finance lease payments$68,725 
Less: imputed interest49,295
Present value of finance lease payments$19,430 
The ground lease payment obligation is subject to an annual consumer price index increase limited within a minimum 2% and a maximum 3% increase. The contractual obligations for this lease included above assume the minimum annual increase for the remainder of the lease term since we cannot predict future adjustments. The remaining lease term on this finance lease as of December 31, 2020 was 49.6 years prior to any impact of lease extension options or purchase options. The discount rate in the finance lease agreement was determined to be 5.30%, which was the lessor's implicit rate in the lease that was readily determinable when the lease commenced.


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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(4)Restricted Cash
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Consolidated Balance Sheets that sum to the total of the same such amounts shown in the Consolidated Statements of Cash Flows (in thousands):
December 31, 2020December 31, 2019
Cash and cash equivalents$6,309 $110,891 
Restricted cash held in escrow for like-kind exchange47,682 1,673 
Restricted cash included in other escrow deposits and other assets13,232 8,867 
Total cash, cash equivalents, and restricted cash shown in the Consolidated Statements of Cash Flows$67,223 $121,431 

Restricted cash held in escrow for like-kind exchange on the Consolidated Balance Sheets includes cash received from the property dispositions but restricted only for qualifying like-kind exchange transactions.

(5)Acquisitions and Dispositions

Acquisitions and dispositions for the periods presented were completed in accordance with our strategy to reposition our investment concentration among the markets in which we operate and to increase our overall investments in quality industrial projects. Transaction costs related to asset acquisitions are capitalized and transaction costs related to business combinations and dispositions are expensed.
2020 Acquisitions
We paid cash of $383.7 million for asset acquisitions during the year ended December 31, 2020.
We acquired ten properties during the year ended December 31, 2020. We determined that these ten properties did not meet the definition of a business and, accordingly, we accounted for them as asset acquisitions as opposed to business combinations.
The following table summarizes amounts recognized for each major class of assets and liabilities (in thousands) for these acquisitions during the year ended December 31, 2020:
Real estate assets$410,481 
Lease related intangible assets14,460 
Total acquired assets$424,941 
Secured debt$25,455 
Below market lease liabilities14,124 

The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 6.4 years.
2019 Acquisitions
We paid cash of $210.2 million for asset acquisitions during the year ended December 31, 2019.
We acquired six properties during the year ended December 31, 2019. We determined that these six properties did not meet the definition of a business and, accordingly, we accounted for them as asset acquisitions as opposed to business combinations.
The following table summarizes amounts recognized for each major class of assets (in thousands) for these acquisitions during the year ended December 31, 2019:
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Real estate assets$205,390 
Lease related intangible assets11,716 
Total acquired assets$217,106 
The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 6.5 years.
2018 Acquisitions
We paid cash of $348.1 million for asset acquisitions during the year December 21, 2018.
We acquired nine properties during the year ended December 31, 2018. We determined that these nine properties did not meet the definition of a business and, accordingly, we accounted for them as asset acquisitions as opposed to business combinations.
The following table summarizes amounts recognized for each major class of asset and liability (in thousands) for these acquisitions during the year ended December 31, 2018:
Real estate assets$328,126 
Lease related intangible assets24,996 
Total acquired assets$353,122 
Below market lease liability$505 
The leases in the acquired properties had a weighted average remaining life at acquisition of approximately 11.3 years.
Fair Value Measurements
We determine the fair value of the individual components of real estate asset acquisitions primarily through calculating the "as-if vacant" value of a building, using an income approach, which relies significantly upon internally determined assumptions. We have determined that these estimates primarily rely on Level 3 inputs, which are unobservable inputs based on our own assumptions. The most significant assumptions used in calculating the "as-if vacant" value for acquisition activity during 2020 and 2019, respectively, are as follows:
20202019
LowHighLowHigh
Exit capitalization rate3.98%5.46%4.23%5.32%
Net rental rate per square foot$5.28$18.11$5.90$15.60
Capitalized acquisition costs were insignificant and the fair value of the ten properties acquired during the year ended December 31, 2020 was substantially the same as the cost of acquisition.
Dispositions
Dispositions of buildings (see Note 8 for the number of buildings sold in each year, as well as for their classification between continuing and discontinued operations) and undeveloped land generated net cash proceeds of $336.3 million, $432.7 million and $511.4 million in 2020, 2019 and 2018, respectively.
During 2020, we collected the remaining $110.0 million of principal on our outstanding notes receivable, which was related to the sale of our medical office portfolio during 2017.
In September 2019, we completed the sale of 18 non-strategic industrial properties for $217.5 million in proceeds and recorded a gain on sale of $146.3 million. These properties totaled 4.1 million square feet and were located in primarily Midwest markets.
All other dispositions were not individually material.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(6)Related Party Transactions

We provide property management, asset management, leasing, construction and other tenant-related services to unconsolidated joint ventures in which we have equity interests. We recorded the corresponding fees based on contractual terms that approximate market rates for these types of services and have eliminated our ownership percentage of these fees in the consolidated financial statements. The following table summarizes the fees earned from these joint ventures, prior to elimination, for the years ended December 31, 2020, 2019 and 2018, respectively (in thousands): 
202020192018
Management fees$1,560 $1,736 $1,813 
Leasing fees1,354 1,544 2,113 
Construction and development fees2,584 5,056 5,248 

(7)Investments in Unconsolidated Joint Ventures
Summarized Financial Information
As of December 31, 2020, we had equity interests in nine unconsolidated joint ventures that primarily own and operate rental properties and hold land for development.
Combined summarized financial information for the unconsolidated joint ventures at December 31, 2020 and 2019, and for the years ended December 31, 2020, 2019 and 2018, are as follows (in thousands):
202020192018
Rental revenue$57,952 $59,905 $60,446 
Gains on land and property sales - continuing operations$2,076 $24,099 $25,879 
Net income$19,183 $40,134 $44,372 
Equity in earnings of unconsolidated joint ventures$11,944 $31,406 $21,444 
Land, buildings and tenant improvements, net$321,803 $305,888 
Construction in progress23,507 7,747 
Undeveloped land23,653 29,518 
Other assets79,842 75,909 
$448,805 $419,062 
Indebtedness$155,539 $129,700 
Other liabilities31,946 24,208 
187,485 153,908 
Owners' equity261,320 265,154 
$448,805 $419,062 
Investments in and advances to unconsolidated joint ventures (1)$131,898 $133,074 

(1) Differences between the net investment in our unconsolidated joint ventures and our underlying equity in the net assets of the ventures are primarily a result of basis differences associated with the sales of properties to joint ventures in which we retained an ownership interest. These adjustments have resulted in an aggregate difference reducing our investments in unconsolidated joint ventures by $2.7 million and $2.5 million as of December 31, 2020 and 2019, respectively. Differences between historical cost basis and the basis reflected at the joint venture level (other than loans and impairments) are typically depreciated over the life of the related asset.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The scheduled principal payments of long term debt for the unconsolidated joint ventures, at our ratable ownership percentage, for each of the next five years and thereafter as of December 31, 2020 are as follows (in thousands):
YearFuture Repayments
2021$40,654 
2022122 
2023126 
2024131 
202530,885 
Thereafter5,851 
$77,769 
In January 2021 we, and the other partner in one of our unconsolidated joint ventures, repaid the substantial majority (see Note 14) of the future repayments scheduled for 2021.

(8)Real Estate Assets, Discontinued Operations and Assets Held-for-Sale
Real Estate Assets
Real estate assets, excluding assets held-for-sale, consisted of the following (in thousands):
December 31, 2020December 31, 2019
Buildings and tenant improvements$5,812,004 $5,295,336 
Land and improvements2,883,674 2,532,541 
Other real estate investments (1)49,477 165,500 
Real estate assets$8,745,155 $7,993,377 

(1) Includes underutilized in-fill sites, which may have had buildings/structures on site when we acquired them, that are either (i) under lease to a third party and, after the lease ends, are expected to be redeveloped or will require significant capital expenditures before re-leasing; or (ii) industrial/logistics properties that we intend to re-lease after significant retrofitting and/or environmental remediation is completed.
Allocation of Noncontrolling Interests - General Partner
The following table illustrates the General Partner's share of the income attributable to common shareholders from continuing operations and discontinued operations, reduced by the allocation of income between continuing and discontinued operations to noncontrolling interests, for the years ended December 31, 2020, 2019 and 2018, respectively (in thousands):
202020192018
Income from continuing operations attributable to common shareholders$299,805 $428,531 $379,865 
Income from discontinued operations attributable to common shareholders110 441 3,864 
Net income attributable to common shareholders$299,915 $428,972 $383,729 
Allocation of Noncontrolling Interests - Partnership
Substantially all of the income from discontinued operations for all periods presented in the Partnership's Consolidated Statements of Operations and Comprehensive Income is attributable to the common unitholders.
Assets Held-for-Sale
The following table illustrates the number of sold or held-for-sale properties:
Held-for-Sale at December 31, 2020Sold in 2020Sold in 2019Sold in 2018Total
  Properties sold or classified as held-for-sale27281552
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2020, two in-service properties were classified as held-for-sale, but did not meet the criteria to be classified within discontinued operations. The following table illustrates aggregate balance sheet information for properties held-for-sale (in thousands):
Held-for-Sale Properties Included in Continuing Operations
December 31, 2020December 31, 2019
Land and improvements$27,954 $4,561 
Buildings and tenant improvements44,800 18,840 
Accumulated depreciation(5,976)(7,132)
Deferred leasing and other costs, net936 2,100 
Other assets232 94 
Total assets held-for-sale$67,946 $18,463 
Accrued expenses$660 $643 
Other liabilities7,080 244 
Total liabilities held-for-sale$7,740 $887 

(9)Indebtedness
All debt is issued directly or indirectly by the Partnership. The General Partner does not have any indebtedness, but does guarantee some of the unsecured debt of the Partnership.
Indebtedness at December 31, 2020 and 2019 consists of the following (in thousands):
Maturity DateWeighted Average Interest RateWeighted Average Interest Rate
2020201920202019
Fixed rate secured debt2025 to 20354.56 %5.92 %$62,817 $32,287 
Variable rate secured debt20250.08 %1.39 %1,600 1,900 
Unsecured debt2022 to 20503.35 %3.71 %3,058,740 2,900,000 
Unsecured line of credit20231.03 %— %295,000 — 
$3,418,157 $2,934,187 
Less: Deferred financing costs33,106 19,422 
Total indebtedness as reported on consolidated balance sheets$3,385,051 $2,914,765 
Secured Debt
At December 31, 2020, our secured debt was collateralized by rental properties with a carrying value of $160.3 million and by a letter of credit in the amount of $1.6 million.
The fair value of our fixed rate secured debt at December 31, 2020 was $65.8 million. Because our fixed rate secured debt is not actively traded in any marketplace, we utilized a discounted cash flow methodology to determine its fair value. Accordingly, we calculated fair value by applying an estimate of the current market rate to discount the debt's remaining contractual cash flows. Our estimate of a current market rate, which is the most significant input in the discounted cash flow calculation, is intended to replicate debt of similar maturity and loan-to-value relationship. The estimated market rates for all of our current fixed rate secured debt are between 1.90% and 2.70%, depending on the attributes of the specific loans. The current market rates we utilized were internally estimated; therefore, we have concluded that our determination of fair value for our fixed rate secured debt was primarily based upon Level 3 inputs.
In February 2020, a consolidated joint venture obtained an $18.4 million secured loan from a third party financial institution, with a fixed annual interest rate of 3.41% and a maturity date of March 1, 2035.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In September 2020, we assumed two secured loans in conjunction with a two-building asset acquisition. These assumed loans had a total face value of $21.5 million and fair value of $25.5 million. These assumed loans had a weighted average remaining term at acquisition of 11.8 years and carried a weighted average stated interest rate of 4.54%. The difference between the fair value and the face value of loans assumed in connection with the acquisition is recorded as a premium and amortized to interest expense over the life of the loans assumed. We used an estimated market interest rate of 2.50% in determining the fair values of these loans.
During 2020, we repaid one fixed rate secured loan, totaling $9.0 million, which had a stated interest rate of 5.61%.
During 2019, we repaid three loans, totaling $41.7 million, which had a weighted average stated rate of 7.76%.
Unsecured Debt
At December 31, 2020, all of our unsecured debt bore interest at fixed rates and primarily consisted of unsecured notes that are publicly traded. We utilized broker estimates in estimating the fair value of our fixed rate unsecured debt. Our unsecured notes are thinly traded and, in certain cases, the broker estimates were not based upon comparable transactions. The broker estimates took into account any recent trades within the same series of our fixed rate unsecured debt, comparisons to recent trades of other series of our fixed rate unsecured debt, trades of fixed rate unsecured debt from companies with profiles similar to ours, as well as overall economic conditions. We reviewed these broker estimates for reasonableness and accuracy, considering whether the estimates were based upon market participant assumptions within the principal and most advantageous market and whether any other observable inputs would be more accurate indicators of fair value than the broker estimates. We concluded that the broker estimates were representative of fair value. We have determined that our estimation of the fair value of our fixed rate unsecured debt was primarily based upon Level 3 inputs. The estimated trading values of our fixed rate unsecured debt, depending on the maturity and coupon rates, ranged from 101.00% to 138.00% of face value.
The indentures (and related supplemental indentures) governing our outstanding series of notes also require us to comply with financial ratios and other covenants regarding our operations. We were in compliance with all such financial covenants at December 31, 2020.
We took the following actions during 2020 and 2019 as they pertain to our unsecured indebtedness:
•In June 2020, we issued $350.0 million of senior unsecured notes, which bear interest at a stated interest rate of 1.75%, have an effective interest rate of 1.85% and mature on July 1, 2030. Proceeds from the unsecured notes offering were primarily used to repurchase and cancel $216.3 million of 3.88% senior unsecured notes due 2022 pursuant to a tender offer completed by the Partnership in June 2020. In connection with the early cancellation of these notes, we recognized a loss of $15.1 million consisting of a repayment premium and the write-off of unamortized deferred financing costs.
•In February 2020, we issued $325.0 million of senior unsecured notes that bear interest at a stated interest rate of 3.05%, have an effective interest rate of 3.19%, and mature on March 1, 2050. Proceeds from the unsecured notes offering were primarily used to repay the $300.0 million of senior unsecured notes bearing a stated interest rate of 4.38% due 2022. In connection with the early redemption of these notes, we recognized a loss of $17.8 million consisting of a prepayment premium and the write-off of unamortized deferred financing costs.
•In November 2019, we issued $400.0 million of senior unsecured notes that bear interest at a stated interest rate of 2.88%, have an effective interest rate of 3.96% when including the impact of interest rate swap amortization from accumulated other comprehensive loss, and mature on November 15, 2029.
•In October 2019, we redeemed $250.0 million of senior unsecured notes that had a scheduled maturity date of February 15, 2021 and bore a stated interest rate of 3.88% and an effective rate of 3.91%. We recognized a loss on debt extinguishment of $6.3 million, which included a prepayment premium and the write-off of unamortized deferred financing costs.
•In August 2019, we issued $175.0 million of senior unsecured notes that bear interest at a stated interest rate of 3.38%, have an effective interest rate of 2.80%, and mature on December 15, 2027. Proceeds from the unsecured notes offering were primarily used to repay the borrowings under the unsecured line of credit.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unsecured Line of Credit
Our unsecured line of credit at December 31, 2020 is described as follows (in thousands):
 
Outstanding Balance at 
DescriptionBorrowing CapacityMaturity DateDecember 31, 2020
Unsecured Line of Credit – Partnership$1,200,000 January 30, 2022$295,000 
The Partnership's unsecured line of credit has an interest rate on borrowings of LIBOR plus 0.875% (equal to 1.03% for our outstanding borrowings at December 31, 2020) and a maturity date of January 30, 2022, with options to extend until January 30, 2023. Subject to certain conditions, the terms also include an option to increase the facility by up to an additional $800.0 million, for a total of up to $2.00 billion. This line of credit provides us with an option to obtain borrowings from financial institutions that participate in the line at rates that may be lower than the stated interest rate, subject to certain restrictions.
This line of credit contains financial covenants that require us to meet certain financial ratios and defined levels of performance, including those related to fixed charge coverage, unsecured interest expense coverage and debt-to-asset value (with asset value being defined in the Partnership's unsecured line of credit agreement). At December 31, 2020, we were in compliance with all financial covenants under this line of credit.
We utilized a discounted cash flow methodology in order to estimate the fair value of outstanding borrowings on our unsecured line of credit. To the extent that credit spreads have changed since the origination of the line of credit, the net present value of the difference between future contractual interest payments and future interest payments based on our estimate of a current market rate would represent the difference between the book value and the fair value. This estimate of a current market rate is based upon the rate, considering current market conditions and our specific credit profile, at which we estimate we could obtain similar borrowings. As our credit spreads have not changed appreciably, we believe that the contractual interest rate and the current market rate on any outstanding borrowings on the line of credit are the same. The current market rate is internally estimated and therefore is primarily based upon a Level 3 input.
Changes in Fair Value
As all of our fair value debt disclosures relied primarily on Level 3 inputs, the following table summarizes the book value and changes in the fair value of our debt for the year ended December 31, 2020 (in thousands): 
Book Value at 12/31/2019Book Value at 12/31/2020Fair Value at 12/31/2019Issuances and
Assumptions		Payments/PayoffsAdjustments
to Fair Value		Fair Value at 12/31/2020
Fixed rate secured debt$32,287 $62,817 $34,547 $43,855 $(13,156)$602 $65,848 
Variable rate secured debt1,900 1,600 1,900 — (300)— 1,600 
Unsecured debt2,900,000 3,058,740 3,045,485 675,000 (516,260)183,688 3,387,913 
Unsecured line of credit— 295,000 — 295,000 — — 295,000 
Total$2,934,187 $3,418,157 $3,081,932 $1,013,855 $(529,716)$184,290 $3,750,361 
Less: Deferred financing costs19,422 33,106 
Total indebtedness as reported on the consolidated balance sheets$2,914,765 $3,385,051 
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Scheduled Maturities and Interest Paid
At December 31, 2020, the scheduled amortization and maturities of all indebtedness, excluding fair value adjustment, for the next five years and thereafter were as follows (in thousands):
YearAmount
2021$4,413 
202288,386 
2023549,893 
2024305,155 
20255,102 
Thereafter2,461,396 
$3,414,345 
The Partnership’s unsecured line of credit is reflected in the table above as maturing in January 2023, based on the ability to exercise the two six-month extension options from its stated maturity date of January 2022. The amount of interest paid in 2020, 2019 and 2018 was $104.6 million, $111.8 million and $108.2 million, respectively. The amount of interest capitalized in 2020, 2019 and 2018 was $24.3 million, $26.5 million and $27.2 million, respectively.

(10)Segment Reporting
Reportable Segments
As of December 31, 2020, we had two reportable operating segments, the first consisting of the ownership and rental of industrial real estate investments. We continue to increase our investments in quality industrial properties largely based on anticipated geographic trends in supply and demand for industrial buildings, as well as the real estate needs of our major tenants that operate on a national level. We treat our industrial properties as a single operating and reportable segment based on our method of internal reporting. Properties not included in our reportable segment, because they are not industrial properties and do not by themselves meet the quantitative thresholds for separate presentation as a reportable segment, are generally referred to as non-reportable Rental Operations. Our non-reportable Rental Operations primarily include our remaining office properties and medical office property at December 31, 2020. The operations of our industrial properties, as well as our non-reportable Rental Operations, are collectively referred to as "Rental Operations."
Our second reportable segment consists of various real estate services such as development, general contracting, construction management, property management, asset management, maintenance and leasing to third-party property customers, owners and joint ventures, and is collectively referred to as "Service Operations." The Service Operations segment is identified as one single operating segment because the lowest level of financial results reviewed by our chief operating decision maker are the results for the Service Operations segment in total.  Further, our reportable segments are managed separately because each segment requires different operating strategies and management expertise.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Revenues by Reportable Segment
The following table shows the revenues for each of the reportable segments, as well as a reconciliation to consolidated revenues, for the years ended December 31, 2020, 2019 and 2018 (in thousands):
202020192018
Revenues
Rental Operations:
Industrial$921,612 $848,806 $775,713 
Non-reportable Rental Operations5,995 5,794 7,862 
Service Operations64,004 117,926 162,551 
Total segment revenues991,611 972,526 946,126 
Other revenue1,587 1,233 1,744 
Consolidated revenue from continuing operations993,198 973,759 947,870 
Discontinued operations— — 117 
Consolidated revenue$993,198 $973,759 $947,987 
Major Customer
The table below shows the revenues from a major customer from each of our reportable segments (in thousands):
Twelve Months Ended December 31,
202020192018
Revenues
Rental Operations - Industrial$92,986 $63,805 $56,649 
Service Operations32,771 45,177 44,532 
We generated more than 10% of our total revenues from this customer for the year ended December 31, 2020. Revenues from Rental Operations relate to leasing properties to this customer. Revenues from Service Operations for this customer pertained primarily to general contractor services, and the construction costs paid to subcontractors and the associated revenues from billing this customer for those costs are recorded on a gross basis.
Supplemental Performance Measure
PNOI is the non-GAAP supplemental performance measure that we use to evaluate the performance of, and to allocate resources among, the real estate investments in the reportable and operating segments that comprise our Rental Operations. PNOI for our Rental Operations segments is comprised of rental revenues from continuing operations less rental expenses and real estate taxes from continuing operations, along with certain other adjusting items (collectively referred to as "Rental Operations revenues and expenses excluded from PNOI," as shown in the following table). Additionally, we do not allocate interest expense, depreciation expense and certain other non-property specific revenues and expenses (collectively referred to as "Non-Segment Items," as shown in the following table) to our individual operating segments.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

We evaluate the performance of our Service Operations reportable segment using net income or loss, as allocated to that segment ("Earnings from Service Operations").The following table shows a reconciliation of our segment-level measures of profitability to consolidated income from continuing operations before income taxes, for the years ended December 31, 2020, 2019 and 2018 (in thousands and excluding discontinued operations):
 202020192018
PNOI
Industrial$653,028 $588,386 $515,483 
Non-reportable Rental Operations5,020 3,811 5,264 
PNOI, excluding all sold properties658,048 592,197 520,747 
PNOI from sold properties included in continuing operations7,763 25,924 43,609 
PNOI, continuing operations665,811 618,121 564,356 
Earnings from Service Operations6,028 6,360 8,642 
Rental Operations revenues and expenses excluded from PNOI:
Straight-line rental income and expense, net25,865 21,197 24,604 
Revenues related to lease buyouts2,863 1,611 23 
Amortization of lease concessions and above and below market rents8,984 7,802 2,332 
Intercompany rents and other adjusting items(1,473)1,012 1,271 
Non-Segment Items:
Equity in earnings of unconsolidated joint ventures11,944 31,406 21,444 
Interest expense(93,442)(89,756)(85,006)
Depreciation and amortization expense(353,013)(327,223)(312,217)
Gain on sale of properties127,700 234,653 204,988 
Impairment charges(5,626)— — 
Interest and other income, net1,721 9,941 17,234 
General and administrative expenses(62,404)(60,889)(56,218)
Gain on land sales10,458 7,445 10,334 
Other operating expenses(8,209)(5,318)(5,231)
Loss on extinguishment of debt(32,900)(6,320)(388)
Gain on involuntary conversion4,312 2,259 — 
Non-incremental costs related to successful leases(12,292)(12,402)— 
Other non-segment revenues and expenses, net1,210 986 (3,972)
Income from continuing operations before income taxes$297,537 $440,885 $392,196 
The most comparable GAAP measure to PNOI is income from continuing operations before income taxes. PNOI excludes expenses that materially impact our overall results of operations and, therefore, should not be considered as a substitute for income from continuing operations before income taxes or any other measures derived in accordance with GAAP. Furthermore, PNOI may not be comparable to other similarly titled measures of other companies.
Assets by Reportable Segment
 The assets for each of the reportable segments at December 31, 2020 and 2019 were as follows (in thousands):
December 31, 2020December 31, 2019
Assets
Rental Operations:
Industrial$8,709,960 $7,843,302 
Non-reportable Rental Operations35,292 39,700 
Service Operations160,194 150,882 
Total segment assets8,905,446 8,033,884 
Non-segment assets205,948 386,678 
Consolidated assets$9,111,394 $8,420,562 

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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In addition to revenues and PNOI, we also review our second generation capital expenditures in measuring the performance of our individual Rental Operations segments. We review these expenditures to determine the costs associated with re-leasing vacant space and maintaining the condition of our properties. Our second generation capital expenditures are included within "second generation tenant improvements, leasing costs and building improvements" in our consolidated statements of Cash Flows and are primarily attributable to the industrial segment for the years ended December 31, 2020, 2019 and 2018.

(11)Employee Benefit Plans
We maintain a 401(k) plan for our eligible employees. We make matching contributions of 50% of the employee salary deferral contributions up to 6% of eligible compensation and may also make annual discretionary contributions. A discretionary contribution was declared at the end of 2020, 2019 and 2018. The total expense recognized for this plan was $2.2 million, $2.1 million and $1.8 million for the years ended December 31, 2020, 2019 and 2018, respectively.

(12)Shareholders' Equity of the General Partner and Partners' Capital of the Partnership
General Partner
The General Partner has an ATM equity program that allows it to issue and sell its common shares through sales agents from time to time. Actual sales under the ATM equity program depend on a variety of factors to be determined by the General Partner, including, among others, market conditions, the trading price of the General Partner’s common stock, determinations by the General Partner of the appropriate sources of funding and potential uses of funding available.
In August 2019, the General Partner terminated its previous equity distribution agreement for the ATM equity program and entered into a new equity distribution agreement to sell shares of its common stock, $0.01 par value per share, from time to time, up to an aggregate offering price of $400.0 million.
During 2020, the General Partner issued 4.6 million common shares pursuant to its ATM equity program, generating gross proceeds of $177.1 million and, after deducting commissions and other costs, net proceeds of $175.0 million. The proceeds from these offerings were contributed to the Partnership and used to fund development activities.
During 2019, the General Partner issued 8.0 million common shares pursuant to its ATM equity programs, generating gross proceeds of $266.3 million and, after deducting commissions and other costs, net proceeds of $263.3 million. The proceeds from these offerings were contributed to the Partnership and used to fund development activities.
During 2018, the General Partner issued 990,400 common shares pursuant to its ATM equity program, generating gross proceeds of approximately $29.0 million and, after deducting commissions and other costs, net proceeds of approximately $28.4 million. The proceeds from these offerings were contributed to the Partnership and used to fund development activities.
Partnership
For each common share or preferred share that the General Partner issues, the Partnership issues a corresponding General Partner Unit or Preferred Unit, as applicable, to the General Partner in exchange for the contribution of the proceeds from the stock issuance. Similarly, when the General Partner redeems or repurchases common shares or preferred shares, the Partnership redeems the corresponding General Partner Units or Preferred Units held by the General Partner at the same price.

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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(13)Stock Based Compensation
We are authorized to issue up to 10.3 million shares of the General Partner's common stock under our stock-based employee and non-employee compensation plans. Executive officers may elect to receive Long-Term Incentive Plan Units ("LTIP Units"), which represent an interest in the Partnership, in lieu of stock based compensation awards denominated in the General Partner's common stock.
Restricted Stock Units ("RSUs")
Under our 2015 Long-Term Incentive Plan, which was approved by the General Partner's shareholders in April 2015, and our 2015 Non-Employee Directors Compensation Plan (collectively, the "Compensation Plans"), RSUs may be granted to non-employee directors, executive officers and selected employees. An RSU is economically equivalent to a share of the General Partner's common stock, and RSUs are valued based on the market price of the General Partner's common stock on the date of the award. Amounts disclosed below include both RSUs and any elected LTIP Units, which have the same vesting schedule as RSUs.
RSUs granted to employees from 2015 to 2020 vest ratably in most cases over a three-year period and are payable in shares of our common stock with a new share of such common stock issued upon each RSU's vesting. RSUs granted to existing non-employee directors vest 100% over one year and have contractual lives of one year.
To the extent that a recipient of an RSU grant is not determined to be retirement eligible, as defined by the Compensation Plans, we recognize expense on a straight-line basis over the vesting period. Expense is recognized immediately at the date of grant to the extent a recipient is retirement eligible and expense is accelerated to the extent that a participant will become retirement eligible prior to the end of the contractual life of granted RSUs.
The following table summarizes transactions for our unvested RSUs, excluding dividend equivalents, for 2020: 
Restricted Stock UnitsNumber of
RSUs		Weighted
Average
Grant-Date
Fair Value
December 31, 2019748,180 $27.73
Granted in 2020354,393 $37.28
Vested in 2020(411,593)$27.15
Forfeited in 2020(12,177)$32.35
December 31, 2020678,803 $32.98
Compensation cost recognized for RSUs totaled $12.1 million, $11.0 million and $11.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.
As of December 31, 2020, there was $6.5 million of total unrecognized compensation expense related to nonvested RSUs granted under the Plan, which is expected to be recognized over a weighted average period of 1.7 years.
The total intrinsic value (which is equal to the value of a share of the General Partner's common stock on the date of vesting) of RSUs vested during the years ended December 31, 2020, 2019 and 2018 was $15.4 million, $17.7 million and $18.3 million, respectively.
The weighted average grant-date fair value of RSUs granted during 2019 and 2018 was $29.98 and $25.38, respectively.
The weighted average grant-date fair value of nonvested RSUs as of December 31, 2018 was $23.36.
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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Performance-Based Awards
A portion of the annual stock-based compensation awards granted to our executive officers annually include performance conditions, measured over a three-year performance period, based on pre-established goals for growth in a defined adjusted funds from operations (“AFFO”) metric. These performance-based awards disclosed below include awards denominated in both common shares of the General Partner or LTIP Units. The total number of instruments issued at the end of each performance period may be earned in a range from 0% to 200% of the target value of the award depending on our AFFO performance relative to the pre-established goals.
To the extent that a recipient of these performance-based awards is not determined to be retirement eligible, as defined by the Compensation Plans, we recognize expense on a straight-line basis over the performance period based on the most likely payout percentage at each reporting period for each grant to the extent that a payout is determined to be probable. Expense is recognized immediately at the date of grant, based on the most likely payout percentage to the extent that a payout is determined to be probable, when a recipient is retirement eligible, and expense is accelerated to the extent that a participant will become retirement eligible prior to the end of the performance period of an award.
Details on the unvested amounts of these annual grants by performance period are as follows:
Performance-Based AwardsUnvested Awards OutstandingUnvested Weighted Average Grant Date Fair Value
Unvested awards at December 31, 2019227,697 $27.50
Above target performance adjustment122,281 $25.37
Vested in 2020(244,562)$25.37
Granted in 2020102,296 $37.29
Unvested awards at December 31, 2020207,712 $33.58
To the extent that performance-based awards are denominated in LTIP units, the above target component of such awards that vest are subject to an additional two year holding period. A summary of vested awards still subject to the two year holding period is as follows:
Vested LTIP Awards Outstanding
Vested Awards at December 31, 2019243,171
Vested in 2020185,232
Completed holding period in 2020(105,834)
Vested Awards at December 31, 2020322,569
Compensation cost recognized for these performance-based awards totaled $7.8 million, $6.2 million and $5.7 million for the years ended December 31, 2020, 2019 and 2018, respectively.
As of December 31, 2020, there was $913,000 of total unrecognized compensation expense related to nonvested performance-based awards, which is expected to be recognized over a weighted average period of 1.5 years.
The weighted average grant-date fair value, per instrument, for these performance-based awards granted during 2019 and 2018 was $29.98 and $25.37.
The weighted average grant-date fair value of these nonvested performance-based awards as of December 31, 2018 was $25.32.

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DUKE REALTY CORPORATION AND DUKE REALTY LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




(14)Commitments and Contingencies
The Partnership has guaranteed the repayment of $20.1 million of economic development bonds issued by various municipalities in connection with certain commercial developments. We may be required to make payments under our guarantees to the extent that incremental taxes from specified developments are not sufficient to pay the bond debt service. Management does not believe that it is probable that we will be required to make any significant payments in satisfaction of these guarantees.
The Partnership also has guaranteed the repayment of loans associated with two of our unconsolidated joint ventures. At December 31, 2020, the maximum guarantee exposure for these loans was approximately $81.3 million. In January 2021, we, and the other partner in one of these unconsolidated joint ventures, repaid one of these guaranteed loans, totaling $69.8 million, which was scheduled to mature in November 2021.
We lease certain land positions with lease terms extending to April 1, 2082, and a total future payment obligation of $225.2 million at December 31, 2020. No payments on these ground leases are material in any individual year.
In addition to ground leases, we are party to other operating leases as part of conducting our business, including leases of office space from third parties, with a total future payment obligation of $27.9 million at December 31, 2020. No future payments on these leases are material in any individual year.
We are subject to various legal proceedings and claims that arise in the ordinary course of business. In the opinion of management, the amount of any ultimate liability with respect to these actions is not expected to materially affect our consolidated financial statements or results of operations. 
We own certain parcels of land that are subject to special property tax assessments levied by quasi municipal entities. To the extent that such special assessments are fixed and determinable, the discounted value of the full assessment is recorded as a liability. We have $961,000 of such special assessment liabilities, which are included within other liabilities on our Consolidated Balance Sheets as of December 31, 2020.

(15)Subsequent Events
Declaration of Dividends/Distributions
The General Partner's board of directors declared the following dividends/distributions at its regularly scheduled board meeting held on January 27, 2021:
Class of stock/unitsQuarterly
Amount per Share or Unit		Record DatePayment Date
Common$0.255 February 16, 2021February 26, 2021
Issuance of Senior Unsecured Notes
In January 2021, we issued $450.0 million of senior unsecured notes that bear a stated interest rate of 1.75%, have an effective interest rate of 1.83%, and mature on February 1, 2031. Proceeds from the unsecured notes offering were initially applied to pay down outstanding borrowings on the line of credit as of December 31, 2020, and we intend to allocate an amount equal to the net proceeds from the offering to the financing or refinancing of eligible green projects.
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Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Atlanta, Georgia
Airport Distribution 3781Industrial— 4,064 11,383 320 4,064 11,703 15,767 3,211 20022014
Aurora, Illinois
Meridian Business 880Industrial— 963 4,625 1,420 963 6,045 7,008 3,170 20002000
4220 Meridian ParkwayIndustrial— 970 3,512 102 970 3,614 4,584 1,440 20042004
Butterfield 2805Industrial— 9,185 10,795 5,857 9,272 16,565 25,837 10,641 20082008
Meridian Business 940Industrial— 2,674 6,923 2,458 2,674 9,381 12,055 3,003 19982012
Butterfield 4000Industrial— 3,132 12,639 70 3,132 12,709 15,841 3,186 20162016
Butterfield 2850Industrial— 11,317 18,305 130 11,317 18,435 29,752 5,402 20162016
Butterfield 4200Industrial— 5,777 13,108 2,762 5,967 15,680 21,647 4,985 20162016
Butterfield 2865Industrial— 28,151 41,112 14 28,151 41,126 69,277 10,377 20172017
Austell, Georgia
Hartman Business 7545Industrial— 2,640 21,471 43 2,640 21,514 24,154 7,835 20082012
240 The BluffsIndustrial— 6,138 15,447 3,086 6,138 18,533 24,671 1,505 20182018
Avenel, New Jersey
Paddock 1Industrial— 20,861 15,408 — 20,861 15,408 36,269 415 20202020
Baltimore, Maryland
Chesapeake Commerce 5901Industrial— 3,345 1,355 3,855 3,365 5,190 8,555 3,507 20082008
Chesapeake Commerce 5003Industrial— 6,488 7,087 5,656 6,546 12,685 19,231 6,101 20082008
Chesapeake Commerce 2010Industrial— 37,557 38,011 109 37,971 37,706 75,677 20,215 20142014
Chesapeake Commerce 5501Industrial— 13,724 8,043 5,511 13,782 13,496 27,278 6,017 20142014
Chesapeake Commerce 1500Industrial— 8,289 10,268 105 8,333 10,329 18,662 3,675 20162016
Chesapeake Commerce 5900Industrial— 5,567 6,100 876 5,567 6,976 12,543 1,824 20172017
Chesapeake Commerce 6000Industrial— 2,418 10,369 — 2,418 10,369 12,787 409 20202020
Batavia, Ohio
S Afton Industrial Park 3001Industrial— 5,729 20,717 — 5,729 20,717 26,446 1,800 20192019
Baytown, Texas
4570 E. GreenwoodIndustrial— 9,323 5,934 — 9,323 5,934 15,257 5,348 20052007
Bloomingdale, Georgia
Morgan Business Center 400Industrial— 18,385 44,455 520 18,385 44,975 63,360 6,797 20172017
Bolingbrook, Illinois
250 East Old Chicago RoadIndustrial— 1,229 4,038 142 1,229 4,180 5,409 1,617 20052005
Crossroads 2Industrial— 1,134 5,434 502 1,134 5,936 7,070 2,113 19982010
Crossroads 375Industrial— 1,064 4,371 535 1,064 4,906 5,970 1,802 20002010
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Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Crossroads Parkway 370Industrial— 2,409 4,236 881 2,409 5,117 7,526 2,138 19892011
Crossroads Parkway 605Industrial— 3,656 7,587 2,747 3,656 10,334 13,990 3,393 19982011
Crossroads Parkway 335Industrial— 2,574 8,342 779 2,574 9,121 11,695 3,098 19972012
Boynton Beach, Florida
Gateway Center 1103Industrial— 4,271 5,313 1,988 4,271 7,301 11,572 3,370 20022010
Gateway Center 3602Industrial— 2,006 4,584 208 2,006 4,792 6,798 1,876 20022010
Gateway Center 3402Industrial— 2,381 3,218 462 2,381 3,680 6,061 1,612 20022010
Gateway Center 2055Industrial— 1,800 2,583 193 1,800 2,776 4,576 1,196 20002010
Gateway Center 2045Industrial— 1,238 1,541 797 1,238 2,338 3,576 964 20002010
Gateway Center 2035Industrial— 1,238 1,304 699 1,238 2,003 3,241 863 20002010
Gateway Center 2025Industrial— 1,800 2,658 218 1,800 2,876 4,676 1,256 20002010
Gateway Center 1926Industrial— 4,781 9,900 1,482 4,781 11,382 16,163 4,844 20042010
Braselton, Georgia
Braselton Business 920Industrial— 1,365 7,713 4,921 1,529 12,470 13,999 6,435 20012001
625 Braselton PkwyIndustrial— 4,355 21,010 5,752 5,417 25,700 31,117 10,540 20062005
1350 Braselton ParkwayIndustrial— 8,227 8,856 4,110 8,227 12,966 21,193 10,130 20082008
Brentwood, Tennessee
Brentwood South Business 7104Industrial— 1,065 4,410 1,924 1,065 6,334 7,399 3,317 19871999
Brentwood South Business 7106Industrial— 1,065 1,844 1,974 1,065 3,818 4,883 2,078 19871999
Brentwood South Business 7108Industrial— 848 3,233 1,274 848 4,507 5,355 2,504 19891999
Bridgeton, Missouri
DukePort 13870Industrial— 1,912 4,562 643 1,912 5,205 7,117 1,710 19962010
DukePort 13890Industrial— 1,323 2,223 237 1,323 2,460 3,783 843 19972010
DukePort 4730Industrial— 540 2,690 481 540 3,171 3,711 1,081 19982010
DukePort 13269Industrial— 1,498 5,752 417 1,498 6,169 7,667 2,900 19992010
DukePort 4745Industrial— 751 3,622 419 751 4,041 4,792 1,439 19992010
DukePort 13201Industrial— 2,227 5,459 2,139 2,228 7,597 9,825 3,242 20012010
Brooklyn Park, Minnesota
7300 Northland DriveIndustrial— 700 5,289 640 703 5,926 6,629 3,223 19991998
Crosstown North 9201Industrial— 835 4,433 1,536 1,121 5,683 6,804 3,162 19981999
Crosstown North 8400Industrial— 2,079 4,926 2,308 2,233 7,080 9,313 3,754 19991999
Crosstown North 9100Industrial— 1,079 3,743 1,009 1,166 4,665 5,831 2,442 20002000
Crosstown North 9200Industrial— 1,222 2,674 2,690 1,256 5,330 6,586 2,014 20052005
Crosstown North 7601Industrial— 2,998 7,472 885 2,998 8,357 11,355 3,127 20052005
Buena Park, California
6280 Artesia BoulevardIndustrial— 28,582 5,010 769 28,582 5,779 34,361 921 20052017
-98-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Carol Stream, Illinois
Carol Stream 815Industrial— 3,037 11,210 1,739 3,037 12,949 15,986 5,602 20042003
Carol Stream 640Industrial— 876 3,200 495 876 3,695 4,571 1,365 19992010
Carol Stream 370Industrial— 1,319 5,960 828 1,332 6,775 8,107 2,492 20022010
250 Kehoe BoulevardIndustrial— 1,715 7,552 336 1,715 7,888 9,603 2,754 20082011
Carol Stream 720Industrial— 4,031 17,759 1,019 4,751 18,058 22,809 6,532 19992011
Carson, California
20915 S Wilmington AveIndustrial— 24,350 7,934 — 24,350 7,934 32,284 — 19962020
Carteret, New Jersey
900 Federal Blvd.Industrial— 2,088 24,712 15 2,088 24,727 26,815 3,443 20172017
Chino, California
13799 Monte VistaIndustrial— 14,046 8,236 2,230 14,046 10,466 24,512 6,165 20132013
Cincinnati, Ohio
311 Elm Street - Leasehold ImprovementsOther— — 68 628 — 696 696 334 19861993
Kenwood Commons 8230Office549 638 43 1,380 638 1,423 2,061 663 19861993
Kenwood Commons 8280Office1,051 638 283 1,791 638 2,074 2,712 1,024 19861993
World Park 5389Industrial— 963 5,550 1,457 963 7,007 7,970 2,286 19942010
World Park 5232Industrial— 1,078 5,074 717 1,077 5,792 6,869 1,834 19972010
World Park 5399Industrial— 739 5,251 832 740 6,082 6,822 2,331 19982010
World Park 5265Industrial— 2,118 11,597 4,333 2,118 15,930 18,048 5,269 20152010
City of Industry, California
825 Ajax AveIndustrial— 38,930 27,627 8,133 38,930 35,760 74,690 4,902 20172017
14508 Nelson AveIndustrial— 26,162 25,210 — 26,162 25,210 51,372 — 20102020
College Park, Georgia
2929 Roosevelt HighwayIndustrial— 9,419 17,205 — 9,419 17,205 26,624 624 20202020
College Station, Texas
Baylor College Station MOBMedical Office— 5,551 33,770 5,149 5,551 38,919 44,470 15,535 20132013
Columbus, Ohio
RGLP Intermodal North 9224Industrial— 1,550 19,873 888 1,550 20,761 22,311 3,268 20162016
RGLP Intermodal S 9799Industrial— 13,065 44,159 239 13,065 44,398 57,463 4,577 20182018
-99-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Coppell, Texas
Freeport XIndustrial— 2,145 12,784 3,624 2,145 16,408 18,553 6,902 20042004
Point West 400Industrial— 10,181 12,803 9,076 10,475 21,585 32,060 12,914 20082008
Point West 240Industrial— 6,785 11,700 6,133 7,519 17,099 24,618 9,999 20082008
Point West 120Industrial— 3,267 8,695 1,024 3,267 9,719 12,986 4,260 20152015
Corona, California
1283 Sherborn StreetIndustrial— 8,677 13,575 66 8,677 13,641 22,318 5,555 20052011
Cranbury, New Jersey
311 Half Acre RoadIndustrial— 6,600 14,106 112 6,600 14,218 20,818 4,315 20042013
315 Half Acre RoadIndustrial— 14,100 29,188 645 14,100 29,833 43,933 8,969 20042013
Davenport, Florida
Park 27 Distribution 210Industrial— 1,143 5,052 600 1,198 5,597 6,795 2,512 20032003
Park 27 Distribution 220Industrial— 4,374 5,066 5,850 4,502 10,788 15,290 6,102 20072007
Davie, Florida
Westport Business Park 2555Industrial— 1,200 1,276 69 1,200 1,345 2,545 805 19912011
Westport Business Park 2501Industrial— 1,088 779 238 1,088 1,017 2,105 647 19912011
Westport Business Park 2525Industrial— 2,363 5,791 1,277 2,363 7,068 9,431 2,737 19912011
Deer Park, Texas
801 Seaco CourtIndustrial— 2,331 4,673 627 2,331 5,300 7,631 1,972 20062012
Des Moines, Washington
21202 24th Ave SouthIndustrial— 18,720 36,496 43 18,720 36,539 55,259 3,341 20182018
21402 24th Ave SouthIndustrial— 18,970 31,048 1,176 18,970 32,224 51,194 2,769 20182018
Duluth, Georgia
Sugarloaf 2775Industrial— 560 4,298 1,156 560 5,454 6,014 2,809 19971999
Sugarloaf 3079Industrial— 776 4,536 3,690 776 8,226 9,002 4,200 19981999
Sugarloaf 2855Industrial— 765 2,618 1,562 765 4,180 4,945 2,231 19991999
Sugarloaf 6655Industrial— 1,651 6,804 859 1,651 7,663 9,314 3,390 19982001
2625 Pinemeadow CourtIndustrial— 732 3,107 676 732 3,783 4,515 1,230 19942010
2660 Pinemeadow CourtIndustrial— 459 2,228 99 459 2,327 2,786 1,188 19962010
2450 Satellite BoulevardIndustrial— 473 1,741 446 473 2,187 2,660 827 19942010
DuPont, Washington
2700 Center DriveIndustrial— 34,413 37,943 520 34,582 38,294 72,876 15,590 20132013
2800 Center DriveIndustrial— 21,025 48,060 — 21,025 48,060 69,085 — 20202020
2900 Center DriveIndustrial— 34,692 71,066 — 34,692 71,066 105,758 — 20202020
2980 Center DriveIndustrial— 15,956 17,527 — 15,956 17,527 33,483 — 19962020
Center Drive trailer lotGrounds— 3,252 — — 3,252 — 3,252 — n/a2020
-100-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Durham, North Carolina
Centerpoint Raleigh 1805Industrial— 4,110 10,343 5,151 4,110 15,494 19,604 6,374 20002011
Centerpoint Raleigh 1757Industrial— 2,998 8,722 14 2,998 8,736 11,734 3,059 20072011
Eagan, Minnesota
Apollo 920Industrial— 866 3,234 2,022 895 5,227 6,122 3,025 19971997
Apollo 940Industrial— 474 2,092 794 474 2,886 3,360 1,511 20002000
Apollo 950Industrial— 1,432 5,988 127 1,432 6,115 7,547 3,171 20002000
2015 Silver Bell RoadIndustrial— 1,740 4,180 2,908 1,740 7,088 8,828 3,861 19991999
Trapp 1279Industrial— 671 3,441 994 691 4,415 5,106 2,347 19961998
Trapp 1245Industrial— 1,250 5,424 1,657 1,250 7,081 8,331 3,957 19981998
Earth City, Missouri
Corporate Trail 3655Industrial— 2,850 4,597 2,278 2,875 6,850 9,725 4,422 20062006
East Point, Georgia
Camp Creek 2400Industrial— 296 627 2,259 300 2,882 3,182 1,435 19882001
Camp Creek 2600Industrial— 364 824 1,642 368 2,462 2,830 1,327 19902001
Camp Creek 3201Industrial— 1,937 7,426 4,202 1,937 11,628 13,565 5,578 20042004
Camp Creek 3900Industrial— 287 2,919 2,210 286 5,130 5,416 2,238 20052005
Camp Creek 3909Industrial— 5,687 1,309 26,508 15,168 18,336 33,504 17,337 20142006
Camp Creek 4200Industrial— 2,065 7,037 3,687 2,438 10,351 12,789 6,943 20062006
Camp Creek 3000Industrial— 1,163 1,020 1,479 1,258 2,404 3,662 1,809 20072007
Camp Creek 4800Industrial— 2,476 3,906 2,317 2,740 5,959 8,699 3,714 20082008
Camp Creek 4100Industrial— 3,130 9,115 553 3,327 9,471 12,798 3,787 20132013
Camp Creek 3700Industrial— 1,878 3,842 100 1,883 3,937 5,820 2,044 20142014
Camp Creek 4909Industrial— 7,807 14,321 3,777 7,851 18,054 25,905 5,329 20162016
Camp Creek 3707Industrial— 7,282 20,538 3 7,282 20,541 27,823 5,527 20172017
Camp Creek 4505Industrial— 4,505 9,697 3,489 4,505 13,186 17,691 2,130 20172017
Site S Parking LotGrounds— 4,469 — 303 4,772 — 4,772 663 n/a2018
Camp Creek 4900Industrial— 3,244 7,758 599 3,244 8,357 11,601 822 20192019
Camp Creek 4850Industrial— 5,428 7,169 — 5,428 7,169 12,597 335 20202020
Easton, Pennsylvania
33 Logistics Park 1610Industrial— 24,752 55,500 1,939 24,869 57,322 82,191 17,780 20162016
33 Logistics Park 1611Industrial— 17,979 20,882 1,970 17,979 22,852 40,831 6,324 20172017
33 Logistics Park 1620Industrial— 29,786 33,023 1,250 29,729 34,330 64,059 5,316 20182018
Elk Grove Village, Illinois
1717 Busse RoadIndustrial— 3,602 18,065 37 3,602 18,102 21,704 5,965 20042011
901 Chase AvenueIndustrial— 10,405 8,961 — 10,405 8,961 19,366 477 20202020
-101-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Ellenwood, Georgia
2529 Old Anvil BlockIndustrial— 4,664 9,265 446 4,664 9,711 14,375 3,523 20142014
Fairfield, Ohio
Union Centre Industrial 6019Industrial— 5,635 6,576 2,706 5,635 9,282 14,917 5,769 20082008
Union Centre Industrial 5855Industrial— 3,009 15,387 2,063 3,009 17,450 20,459 3,732 20162016
Fairfield Logistics Ctr 7940Industrial— 4,679 8,237 2,177 4,689 10,404 15,093 1,168 20182018
Fishers, Indiana
Exit 5 9998Industrial— 581 2,561 1,084 581 3,645 4,226 1,773 19991999
Exit 5 9888Industrial— 555 2,498 1,516 555 4,014 4,569 2,269 20002000
Flower Mound, Texas
Lakeside Ranch 550Industrial— 9,861 19,299 494 9,861 19,793 29,654 10,813 20072011
Lakeside Ranch 1001Industrial— 5,662 23,061 2,278 5,662 25,339 31,001 2,006 20192019
Lakeside Ranch 350Industrial— 3,665 10,105 3,734 3,665 13,839 17,504 628 20192019
Fontana, California
14970 Jurupa AveGrounds— 17,306 — — 17,306 — 17,306 962 n/a2016
7953 Cherry AveIndustrial— 6,704 12,521 824 6,704 13,345 20,049 2,591 20172017
9988 Redwood AveIndustrial— 7,755 16,326 695 7,755 17,021 24,776 3,708 20162017
11250 Poplar AveIndustrial— 18,138 33,586 — 18,138 33,586 51,724 6,313 20162017
16171 Santa Ana AveIndustrial— 13,681 13,331 89 13,681 13,420 27,101 1,646 20182018
Fort Lauderdale, Florida
Interstate 95 2200Industrial— 9,332 13,401 2,123 9,332 15,524 24,856 2,513 20172017
Interstate 95 2100Industrial— 10,948 18,681 — 10,948 18,681 29,629 2,703 20172017
Fort Worth, Texas
Riverpark 3300Industrial— 3,975 10,633 647 3,975 11,280 15,255 6,637 20072011
Franklin, Tennessee
Aspen Grove Business 277Industrial— 936 2,919 4,014 936 6,933 7,869 3,695 19961999
Aspen Grove Business 320Industrial— 1,151 5,824 1,345 1,151 7,169 8,320 3,845 19961999
Aspen Grove Business 305Industrial— 970 4,677 1,097 970 5,774 6,744 3,128 19981999
Aspen Grove Business 400Industrial— 492 1,677 1,199 492 2,876 3,368 1,174 20022002
Brentwood South Business 119Industrial— 569 1,063 1,625 569 2,688 3,257 1,390 19901999
Brentwood South Business 121Industrial— 445 1,563 431 445 1,994 2,439 1,051 19901999
Brentwood South Business 123Industrial— 489 962 1,347 489 2,309 2,798 1,280 19901999
-102-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Franklin Park, Illinois
11501 West Irving Park RoadIndustrial— 3,900 2,702 1,585 3,900 4,287 8,187 2,095 20072007
Fullerton, California
500 Burning Tree RdIndustrial— 7,336 4,435 — 7,336 4,435 11,771 935 19912018
700 Burning Tree RdIndustrial— 5,001 4,915 — 5,001 4,915 9,916 642 19912018
Garden City, Georgia
Aviation Court LandGrounds— 1,509 — — 1,509 — 1,509 283 n/a2006
Garner, North Carolina
Greenfield North 600Industrial— 597 2,456 536 598 2,991 3,589 1,167 20062011
-103-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Greenfield North 700Industrial— 468 2,054 295 469 2,348 2,817 873 20072011
Greenfield North 800Industrial— 438 5,772 579 440 6,349 6,789 1,991 20042011
Greenfield North 900Industrial— 422 5,792 1,762 425 7,551 7,976 2,412 20072011
Greenfield North 1000Industrial— 1,897 6,026 96 1,979 6,040 8,019 1,924 20162016
Greenfield North 1001Industrial— 2,517 5,494 2,523 2,610 7,924 10,534 1,761 20172017
N. Greenfield Pkwy Ground DCLPGrounds— 189 222 10 189 232 421 220 n/a2015
Greenfield North 1100Industrial— 1,870 5,623 — 1,870 5,623 7,493 187 20202020
Greenfield North 1201Industrial— 3,462 6,909 — 3,462 6,909 10,371 205 20202020
Geneva, Illinois
1800 Averill RoadIndustrial— 3,189 11,582 7,640 4,778 17,633 22,411 5,667 20132011
Gibsonton, Florida
Tampa Regional Ind Park 13111Industrial— 10,547 8,662 2,008 10,547 10,670 21,217 2,680 20172017
Tampa Regional Ind Park 13040Industrial— 13,184 13,475 2,118 13,184 15,593 28,777 2,277 20182018
Glendale Heights, Illinois
990 North AvenueIndustrial— 12,144 5,933 3,812 12,324 9,565 21,889 1,127 20182018
Grand Prairie, Texas
Grand Lakes 4003Industrial— 8,106 9,124 15,348 9,595 22,983 32,578 11,533 20172006
Grand Lakes 3953Industrial— 11,853 11,851 13,717 11,853 25,568 37,421 15,001 20082008
1803 W. Pioneer ParkwayIndustrial— 7,381 15,389 45 7,381 15,434 22,815 8,515 20082011
Grand Lakes 4053Industrial— 2,468 6,599 1,242 2,468 7,841 10,309 1,172 20182018
Groveport, Ohio
Groveport Commerce Center 6200Industrial— 1,049 5,123 2,786 1,049 7,909 8,958 4,499 19991999
Groveport Commerce Center 6300Industrial— 510 2,395 2,309 510 4,704 5,214 2,363 20002000
Groveport Commerce Center 6295Industrial— 435 5,435 2,054 435 7,489 7,924 3,818 20002000
Groveport Commerce Center 6405Industrial— 1,207 10,322 992 1,207 11,314 12,521 4,496 20052005
RGLP North 2842Industrial— 5,680 22,366 6 5,680 22,372 28,052 6,266 20082010
Hayward, California
24493 Clawiter RoadIndustrial— 23,835 1,525 — 23,835 1,525 25,360 637 19642020
Hazelwood, Missouri
Lindbergh Distribution 5801Industrial— 8,200 9,304 3,823 8,491 12,836 21,327 7,101 20072007
Hebron, Kentucky
Hebron 2305Industrial— 8,855 10,797 19,323 9,511 29,464 38,975 22,943 20062006
-104-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Hebron 2285Industrial— 6,790 6,730 5,209 6,813 11,916 18,729 7,609 20072007
Skyport 2350Industrial— 898 5,777 1,014 1,428 6,261 7,689 2,092 19972010
Skyport 2250Industrial— 1,190 8,771 395 1,190 9,166 10,356 3,268 19992010
Skyport 2245Industrial— 1,714 8,305 1,091 1,714 9,396 11,110 3,235 20002010
Skyport 2265Industrial— 1,153 6,038 975 1,153 7,013 8,166 2,601 20062010
Southpark 1990Industrial— 366 8,344 — 366 8,344 8,710 1,642 20162016
Hialeah, Florida
Countyline Corporate Park 3740Industrial— 18,934 11,560 45 18,934 11,605 30,539 2,400 20182018
Countyline Corporate Park 3780Industrial— 21,445 22,144 100 21,445 22,244 43,689 3,150 20182018
Countyline Corporate Park 3760Industrial— 32,802 52,633 93 32,802 52,726 85,528 6,447 20182018
Countyline Corporate Park 3840Industrial— 15,906 14,953 266 15,906 15,219 31,125 2,172 20182018
Countyline Corporate Park 3850Industrial— 18,270 17,567 156 18,270 17,723 35,993 1,452 20192019
Countyline Corporate Park 3870Industrial— 17,605 17,068 90 17,605 17,158 34,763 1,342 20192019
Hialeah Gardens, Florida
Miami Ind Logistics Ctr 15002Industrial— 10,671 14,071 2,696 10,671 16,767 27,438 3,430 20172017
Miami Ind Logistics Ctr 14802Industrial— 10,800 14,236 3,635 10,800 17,871 28,671 3,378 20172017
Miami Ind Logistics Ctr 10701Industrial— 13,048 17,204 2,636 13,048 19,840 32,888 4,384 20172017
Hopkins, Minnesota
Cornerstone 401Industrial— 1,454 7,623 2,533 1,454 10,156 11,610 5,751 19961997
Houston, Texas
Point North 8210Industrial— 3,125 2,178 2,673 3,125 4,851 7,976 3,442 20082008
Point North 8120Industrial— 4,210 2,108 4,559 4,581 6,296 10,877 2,796 20132013
Point North 8111Industrial— 3,957 15,093 642 3,957 15,735 19,692 4,801 20142014
Point North 8411Industrial— 5,333 6,946 1,271 5,333 8,217 13,550 2,708 20152015
Westland 8323Industrial— 4,183 2,574 3,642 4,417 5,982 10,399 4,189 20082008
Westland 13788Industrial— 3,246 8,338 969 3,246 9,307 12,553 4,764 20112011
Gateway Northwest 20710Industrial— 7,204 8,028 4,167 7,204 12,195 19,399 4,448 20142014
Gateway Northwest 20702Industrial— 2,981 3,122 1,173 2,981 4,295 7,276 1,591 20142014
Gateway Northwest 20502Industrial— 2,987 5,342 21 2,987 5,363 8,350 1,811 20162016
22008 N Berwick DriveIndustrial— 2,981 4,949 905 2,981 5,854 8,835 1,309 20022015
Gateway Northwest 20510Industrial— 6,787 11,501 792 6,787 12,293 19,080 2,174 20182018
Point North 8221Industrial— 6,503 10,357 1,440 6,503 11,797 18,300 1,241 20192019
Huntley, Illinois
14100 Weber DriveIndustrial— 7,539 34,069 78 7,539 34,147 41,686 6,850 20152015
Hutchins, Texas
801 Wintergreen RoadIndustrial— 5,290 9,115 1,218 5,290 10,333 15,623 6,483 20062006
-105-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Prime Pointe 1005Industrial— 5,865 19,420 59 5,865 19,479 25,344 4,411 20162016
Prime Pointe 1015Industrial— 8,356 16,319 2,443 8,356 18,762 27,118 2,668 20182018
Indianapolis, Indiana
Park 100 5550Industrial— 1,171 12,611 678 1,424 13,036 14,460 8,248 19971995
Park 100 Bldg 121 Land LeaseGrounds— 3 — — 3 — 3 — n/a2003
West 79th St. Parking Lot LLGrounds— 350 — 699 1,049 — 1,049 852 n/a2006
North Airport Park 7750Industrial— 1,620 4,329 777 1,620 5,106 6,726 1,968 19972010
Park 100 5010Industrial— 621 1,687 569 621 2,256 2,877 1,026 19842010
Park 100 5134Industrial— 578 1,911 207 578 2,118 2,696 773 19842010
-106-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Park 100 5302Industrial— 384 1,257 428 384 1,685 2,069 915 19892010
Park 100 5303Industrial— 384 1,737 376 384 2,113 2,497 924 19892010
Park 100 7225Industrial— 1,037 13,332 934 1,037 14,266 15,303 5,075 19962010
Park 100 4925Industrial— 1,152 8,588 2,390 1,152 10,978 12,130 4,132 20002010
8711 North River Crossing BlvdHQ/Core Portfolio17,973 4,137 24,259 — 4,137 24,259 28,396 996 20202020
Katy, Texas
3900 Peek RoadIndustrial— 8,584 14,385 — 8,584 14,385 22,969 511 20202020
Clay 99 bldg 1Industrial— 18,688 38,866 — 18,688 38,866 57,554 629 20202020
Kent, Washington
21214 66th Ave SouthIndustrial— 3,813 9,767 — 3,813 9,767 13,580 166 20162020
Kutztown, Pennsylvania
West Hills 9645Industrial— 15,340 47,981 623 15,340 48,604 63,944 14,050 20142014
West Hills 9677Industrial— 5,218 13,029 68 5,218 13,097 18,315 3,797 20152015
La Mirada, California
16501 Trojan WayIndustrial— 23,503 30,945 125 23,503 31,070 54,573 10,349 20022012
16301 Trojan WayIndustrial— 39,645 22,164 25 39,645 22,189 61,834 2,648 20182018
Lancaster, Texas
Lancaster 2820Industrial— 9,786 22,270 8 9,786 22,278 32,064 3,467 20182018
LaPorte, Texas
Bayport Container LotGrounds— 3,334 — 1,041 4,375 — 4,375 — n/a2010
Lawrenceville, Georgia
175 Alcovy Industrial RoadIndustrial— 1,480 2,935 73 1,487 3,001 4,488 1,214 20042004
Lebanon, Indiana
Lebanon Park 185Industrial— 177 8,664 1,534 177 10,198 10,375 5,789 20001997
Lebanon Park 322Industrial— 340 6,230 1,578 340 7,808 8,148 4,188 19991999
Lebanon Park 500Industrial— 816 10,741 2,670 815 13,412 14,227 5,564 20052005
Lebanon Park 210Industrial— 156 3,568 109 156 3,677 3,833 1,371 19962010
Lebanon Park 311Industrial— 349 7,847 907 350 8,753 9,103 3,439 19982010
Lebanon, Tennessee
Park 840 West 14840Industrial— 6,776 8,449 6,336 6,776 14,785 21,561 10,411 20062006
Park 840 East 1009Industrial— 7,731 14,854 1,412 7,852 16,145 23,997 8,725 20132013
Linden, New Jersey
Legacy Commerce Center 801Industrial— 22,134 23,645 2,663 22,134 26,308 48,442 6,540 20142014
Legacy Commerce Center 301Industrial— 6,933 8,575 168 6,933 8,743 15,676 2,403 20152015
-107-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Legacy Commerce Center 901Industrial— 25,935 19,806 2,301 25,937 22,105 48,042 5,541 20162016
Lithia Springs, Georgia
2601 Skyview DriveIndustrial— 4,282 9,534 58 4,282 9,592 13,874 2,228 20162017
Lockport, Illinois
Lockport 16328Industrial— 3,339 17,446 460 3,339 17,906 21,245 2,888 20162017
Lockport 16410Industrial— 2,677 16,117 285 2,677 16,402 19,079 2,564 20162017
Lockport 16508Industrial— 4,520 17,472 2,518 4,520 19,990 24,510 3,224 20172017
Lockbourne, Ohio
Creekside 2120Industrial— 2,868 15,406 787 2,868 16,193 19,061 5,591 20082012
Creekside 4555Industrial— 1,947 11,453 245 1,947 11,698 13,645 3,887 20052012
Lodi, New Jersey
65 Industrial RoadIndustrial— 20,063 899 — 20,063 899 20,962 26 19652020
Logan Township, New Jersey
1130 Commerce BoulevardIndustrial— 3,770 18,699 1,646 3,770 20,345 24,115 5,988 20022013
Long Beach, California
3700 Cover StreetIndustrial— 7,280 6,954 — 7,280 6,954 14,234 3,049 20122013
Lynwood, California
2700 East Imperial HighwayIndustrial— 16,847 17,865 56 16,847 17,921 34,768 7,287 19992011
11600 Alameda StreetIndustrial— 10,705 10,979 1,706 10,958 12,432 23,390 1,863 20172017
Manteca, California
600 Spreckels AvenueIndustrial— 4,851 18,985 272 4,851 19,257 24,108 6,324 19992012
Maple Grove, Minnesota
Arbor Lakes 10500Industrial— 4,803 9,891 3,660 4,912 13,442 18,354 1,191 20182018
Arbor Lakes 10501Industrial— 5,363 17,713 77 5,363 17,790 23,153 1,668 20192019
Park 81 10750Industrial— 3,971 9,262 1 3,971 9,263 13,234 646 20192019
Maryland Heights, Missouri
Riverport 3128Industrial— 733 1,492 2,744 733 4,236 4,969 2,087 20012001
Riverport 3101Industrial— 1,864 3,072 2,207 1,864 5,279 7,143 3,552 20072007
McDonough, Georgia
Liberty Distribution 120Industrial— 615 8,117 699 615 8,816 9,431 4,677 19971999
Liberty Distribution 250Industrial— 2,273 10,910 6,913 3,416 16,680 20,096 7,833 20012001
-108-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Mechanicsburg, Pennsylvania
500 Independence AvenueIndustrial— 4,494 15,007 883 4,499 15,885 20,384 4,380 20082013
Melrose Park, Illinois
1600 North 25th AvenueIndustrial— 5,907 17,516 323 5,907 17,839 23,746 7,035 20002010
Miami, Florida
9601 NW 112 AvenueIndustrial— 11,626 14,651 8 11,626 14,659 26,285 4,914 20032013
Minooka, Illinois
Midpoint Distribution 801Industrial— 6,282 33,196 627 6,282 33,823 40,105 10,768 20082013
Modesto, California
1000 Oates CourtIndustrial— 10,115 16,944 428 10,115 17,372 27,487 7,421 20022012
Monroe Twp., New Jersey
773 Cranbury South River RoadIndustrial— 3,001 36,527 160 3,001 36,687 39,688 5,846 20162017
Moreno Valley, California
17791 Perris BoulevardIndustrial— 67,806 74,531 38 67,806 74,569 142,375 10,725 20182017
15810 Heacock StreetIndustrial— 9,727 18,882 2,770 9,727 21,652 31,379 2,485 20172017
24975 Nandina AveIndustrial— 13,322 17,214 228 13,322 17,442 30,764 1,181 20192019
24960 San MicheleIndustrial— 8,336 13,705 — 8,336 13,705 22,041 1,566 20192019
Morgans Point, Texas
Barbours Cut 1200Industrial— 889 8,209 90 889 8,299 9,188 3,427 20042010
Barbours Cut 1000Industrial— 868 8,471 168 868 8,639 9,507 3,596 20052010
Morrisville, North Carolina
Perimeter Park 3000Industrial— 482 1,982 1,756 491 3,729 4,220 1,859 19891999
Perimeter Park 2900Industrial— 235 1,314 1,644 241 2,952 3,193 1,553 19901999
Perimeter Park 2800Industrial— 777 4,151 1,317 791 5,454 6,245 2,876 19921999
Perimeter Park 2700Industrial— 662 1,081 2,270 662 3,351 4,013 1,610 20012001
Woodlake 100Industrial— 633 3,183 2,080 1,132 4,764 5,896 2,577 19941999
Woodlake 101Industrial— 615 3,868 541 615 4,409 5,024 2,335 19971999
Woodlake 200Industrial— 357 3,688 980 357 4,668 5,025 2,416 19991999
Woodlake 501Industrial— 640 5,477 429 640 5,906 6,546 3,087 19991999
Woodlake 1000Industrial— 514 2,731 3,076 514 5,807 6,321 1,620 20202002
Woodlake 1200Industrial— 740 4,155 2,445 740 6,600 7,340 2,277 20202002
Woodlake 400Industrial— 390 1,055 454 390 1,509 1,899 652 20042004
Myerstown, Pennsylvania
Central Logistics Park 100Industrial— 17,537 29,564 — 17,537 29,564 47,101 1,105 20202020
-109-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Naperville, Illinois
1835 W. JeffersonIndustrial— 2,209 7,921 946 2,213 8,863 11,076 3,659 20052003
175 Ambassador DriveIndustrial— 3,822 11,252 11 3,822 11,263 15,085 4,130 20062010
1860 West JeffersonIndustrial— 7,016 35,581 764 7,016 36,345 43,361 14,545 20002012
Nashville, Tennessee
Airpark East 800Industrial— 1,564 2,129 1,807 1,564 3,936 5,500 1,671 20022002
Nashville Business 3300Industrial— 936 4,773 1,914 936 6,687 7,623 3,567 19971999
Nashville Business 3438Industrial— 3,048 8,165 2,184 3,048 10,349 13,397 4,327 20052005
Four-Forty Business 700Industrial— 938 6,354 706 938 7,060 7,998 3,787 19971999
Four-Forty Business 684Industrial— 1,812 6,561 2,207 1,812 8,768 10,580 4,560 19981999
Four-Forty Business 782Industrial— 1,522 4,820 1,657 1,522 6,477 7,999 3,452 19971999
Four-Forty Business 784Industrial— 471 2,153 1,716 471 3,869 4,340 2,241 19991999
Four-Forty Business 701Industrial— 997 4,763 115 997 4,878 5,875 1,665 19962010
Newark, New Jersey
429 Delancy StreetIndustrial— 60,393 85,359 944 60,486 86,210 146,696 3,797 20192019
Northlake, Illinois
Northlake Distribution 635Industrial— 5,721 9,008 1,574 5,721 10,582 16,303 4,613 20022002
Northlake Distribution 599Industrial— 5,382 5,685 3,568 5,382 9,253 14,635 5,325 20142006
200 Champion WayIndustrial— 3,554 11,528 832 3,554 12,360 15,914 4,088 19972011
Oakland, California
1905 Dennison StreetIndustrial15,492 12,118 20,518 — 12,118 20,518 32,636 289 19562020
955 Kennedy StreetIndustrial9,792 13,053 9,764 — 13,053 9,764 22,817 193 19662020
Orange, California
210 W Baywood AveIndustrial— 5,066 4,515 1,746 5,066 6,261 11,327 683 19892018
Orlando, Florida
2502 Lake OrangeIndustrial— 2,331 3,235 319 2,331 3,554 5,885 1,572 20032003
-110-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Parksouth Distribution 2500Industrial— 565 4,360 2,030 570 6,385 6,955 3,412 19961999
Parksouth Distribution 2490Industrial— 493 4,170 946 498 5,111 5,609 2,928 19971999
Parksouth Distribution 2491Industrial— 593 3,150 1,833 597 4,979 5,576 2,418 19981999
Parksouth Distribution 9600Industrial— 649 4,111 1,128 653 5,235 5,888 2,916 19971999
Parksouth Distribution 9550Industrial— 1,030 4,207 3,218 1,035 7,420 8,455 3,623 19991999
Parksouth Distribution 2481Industrial— 725 2,245 1,542 730 3,782 4,512 1,941 20002000
Parksouth Distribution 9592Industrial— 623 1,646 134 623 1,780 2,403 823 20032003
Crossroads Business Park 301Industrial— 2,803 2,804 4,070 2,803 6,874 9,677 3,769 20062006
Crossroads Business Park 601Industrial— 2,701 3,571 2,073 2,701 5,644 8,345 3,063 20072007
7133 Municipal DriveIndustrial— 5,817 6,820 29 5,817 6,849 12,666 950 20182018
Otsego, Minnesota
Gateway North 6301Industrial— 1,543 6,515 6,009 2,783 11,284 14,067 2,348 20172015
Gateway North 6651Industrial— 3,667 16,249 129 3,748 16,297 20,045 3,890 20152015
Gateway North 6701Industrial— 3,266 11,653 186 3,374 11,731 15,105 3,349 20142014
Gateway North 6651 Exp LandGrounds— 1,521 — — 1,521 — 1,521 439 n/a2016
Pasadena, Texas
Interport 13001Industrial— 5,715 30,961 777 5,655 31,798 37,453 9,208 20072013
Bayport 4035Industrial— 3,772 10,255 188 3,772 10,443 14,215 1,697 20082017
Bayport 4331Industrial— 7,638 30,213 85 7,638 30,298 37,936 5,258 20082017
Perris, California
3500 Indian AvenueIndustrial— 16,210 27,759 8,884 18,716 34,137 52,853 10,147 20152015
3300 Indian AvenueIndustrial— 39,012 43,280 1,885 39,006 45,171 84,177 12,739 20172017
4323 Indian AveIndustrial— 20,525 30,125 469 20,525 30,594 51,119 2,960 20192019
4375 N Perris BlvdIndustrial— 26,830 69,593 — 26,830 69,593 96,423 2,384 20202020
4501 Patterson AvenueIndustrial— 28,211 49,912 — 28,211 49,912 78,123 1,201 20202020
Piscataway, New Jersey
141 Circle Drive NorthGrounds— 5,237 — — 5,237 — 5,237 — n/a2020
Plymouth, Minnesota
Waterford Innovation CenterIndustrial— 2,689 9,897 84 2,689 9,981 12,670 1,766 20172017
Pomona, California
1589 E 9th St.Industrial— 7,386 14,745 359 7,386 15,104 22,490 2,795 20162017
-111-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Perth Amboy, New Jersey
ePort 960Industrial— 14,425 23,463 2,014 14,425 25,477 39,902 3,541 20172017
ePort 980Industrial— 43,778 87,019 251 43,778 87,270 131,048 12,167 20172017
ePort 1000Industrial— 19,726 41,229 1,040 19,726 42,269 61,995 5,520 20172017
Steel Run Logistics Ctr Bldg 1Industrial— 31,987 23,948 — 31,987 23,948 55,935 745 20202020
Steel Run Logistics Ctr Bldg 2Industrial— 73,056 68,473 — 73,056 68,473 141,529 851 20202020
Plainfield, Indiana
Plainfield 1551Industrial— 1,097 7,772 10,899 1,097 18,671 19,768 7,691 20152000
Plainfield 1581Industrial— 1,094 7,279 2,313 1,094 9,592 10,686 5,000 20002000
Plainfield 2209Industrial— 2,016 8,717 2,740 2,016 11,457 13,473 5,127 20022002
Plainfield 1390Industrial— 998 5,817 1,044 998 6,861 7,859 2,804 20042004
Plainfield 2425Industrial— 4,527 10,908 1,905 4,527 12,813 17,340 7,149 20062006
Home Depot trailer parking lotGrounds— 310 — — 310 — 310 — 20182018
AllPoints Midwest Bldg. 1Industrial— 6,692 51,152 1,844 6,692 52,996 59,688 9,855 20082016
AllPoints Midwest Bldg. 4Industrial— 4,111 9,943 22 4,053 10,023 14,076 5,576 20122013
Pompano Beach, Florida
Atlantic Business 1700Industrial— 3,165 8,821 1,894 3,165 10,715 13,880 4,374 20002010
Atlantic Business 1800Industrial— 2,663 8,417 554 2,663 8,971 11,634 3,487 20012010
Atlantic Business 1855Industrial— 2,764 8,162 234 2,764 8,396 11,160 3,181 20012010
Atlantic Business 2022Industrial— 1,804 5,885 41 1,804 5,926 7,730 2,231 20022010
Atlantic Business 1914Industrial— 1,834 5,339 31 1,834 5,370 7,204 2,053 20022010
Atlantic Business 2003Industrial— 1,980 5,918 777 1,980 6,695 8,675 2,839 20022010
Atlantic Business 1901Industrial— 1,995 6,217 376 1,995 6,593 8,588 2,422 20042010
Atlantic Business 2200Industrial— 1,999 6,012 852 1,999 6,864 8,863 2,790 20042010
Atlantic Business 2100Industrial— 1,988 6,130 141 1,988 6,271 8,259 2,343 20022010
Atlantic Business 2201Industrial— 2,194 4,050 202 2,194 4,252 6,446 1,744 20052010
Atlantic Business 2101Industrial— 2,066 6,682 71 2,066 6,753 8,819 2,556 20042010
Atlantic Business 2103Industrial— 1,616 3,634 92 1,616 3,726 5,342 1,500 20052010
Copans Business Park 1571Industrial— 1,710 3,646 387 1,710 4,033 5,743 1,562 19892010
Copans Business Park 1521Industrial— 1,781 3,101 416 1,781 3,517 5,298 1,505 19892010
Park Central 3250Industrial— 1,688 1,997 105 1,688 2,102 3,790 1,030 19992010
Park Central 3760Industrial— 3,098 2,567 1,621 3,098 4,188 7,286 1,932 19952010
Pompano Commerce Center 2901Industrial— 2,177 4,872 889 2,178 5,760 7,938 2,781 20102010
Pompano Commerce Center 3101Industrial— 2,905 4,670 486 2,916 5,145 8,061 2,070 20152015
-112-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Pompano Commerce Center 2951Industrial— 2,177 5,704 64 2,178 5,767 7,945 2,849 20102010
Pompano Commerce Center 3151Industrial— 2,897 3,939 1,249 2,908 5,177 8,085 1,690 20152015
Sample 95 Business Park 3101Industrial— 3,300 6,115 565 3,300 6,680 9,980 2,637 19992010
Sample 95 Business Park 3001Industrial— 2,963 6,135 211 2,963 6,346 9,309 2,511 19992011
Sample 95 Business Park 3035Industrial— 3,713 4,288 411 3,713 4,699 8,412 2,051 19992011
Sample 95 Business Park 3135Industrial— 1,688 5,030 859 1,688 5,889 7,577 2,510 19992010
Copans Business Park 1551Industrial— 1,856 3,146 1,323 1,856 4,469 6,325 2,370 19892011
Copans Business Park 1501Industrial— 1,988 3,367 301 1,988 3,668 5,656 1,464 19892011
Park Central 1700Industrial— 4,136 6,407 866 4,136 7,273 11,409 3,155 19982011
Park Central 2101Industrial— 2,696 5,798 1,143 2,696 6,941 9,637 2,817 19982011
Park Central 3300Industrial— 1,635 2,846 416 1,635 3,262 4,897 1,391 19962011
Park Central 100Industrial— 1,500 1,992 686 1,500 2,678 4,178 1,157 19982011
Park Central 1300Industrial— 2,438 3,021 2,178 2,438 5,199 7,637 2,468 19972011
Copans 95 1731Industrial— 3,511 5,889 1,208 3,516 7,092 10,608 385 20192019
Port Wentworth, Georgia
100 Logistics WayIndustrial4,734 2,306 11,043 2,291 2,336 13,304 15,640 5,422 20062006
500 Expansion BoulevardIndustrial2,193 649 5,842 208 649 6,050 6,699 2,092 20062008
400 Expansion BoulevardIndustrial— 1,636 13,186 1,208 1,636 14,394 16,030 4,640 20072008
605 Expansion BoulevardIndustrial— 1,615 6,852 5,273 1,615 12,125 13,740 2,456 20202008
405 Expansion BoulevardIndustrial— 535 3,192 125 535 3,317 3,852 1,080 20082009
600 Expansion BoulevardIndustrial— 1,248 9,392 33 1,248 9,425 10,673 2,890 20082009
602 Expansion BoulevardIndustrial— 1,840 10,981 78 1,859 11,040 12,899 3,316 20092009
Raleigh, North Carolina
Walnut Creek 540Industrial— 419 1,651 999 419 2,650 3,069 1,214 20012001
Walnut Creek 4000Industrial— 456 2,078 450 456 2,528 2,984 1,229 20012001
Walnut Creek 3080Industrial— 679 2,766 1,546 679 4,312 4,991 1,939 20012001
Walnut Creek 3070Industrial— 913 1,187 1,511 913 2,698 3,611 1,123 20042004
Walnut Creek 3071Industrial— 1,718 2,746 657 1,718 3,403 5,121 2,184 20082008
Rancho Cucamonga, California
9189 Utica AveIndustrial— 5,794 12,646 265 5,794 12,911 18,705 2,599 20162017
Rancho Dominguez, California
18700 Laurel Park RdIndustrial— 8,080 2,987 302 8,284 3,085 11,369 689 19712017
-113-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
Redlands, California
2300 W. San Bernadino AveIndustrial— 20,031 17,968 1,893 20,031 19,861 39,892 7,559 20012013
Richmond, California
2041 Factory StreetIndustrial— 8,132 22,266 — 8,132 22,266 30,398 1,702 20002019
Romeoville, Illinois
875 W. Crossroads ParkwayIndustrial— 4,113 7,274 2,218 4,113 9,492 13,605 3,924 20052005
Crossroads 1255Industrial— 2,350 9,217 3,058 2,350 12,275 14,625 4,627 19992010
Crossroads 801Industrial— 2,622 6,184 305 2,622 6,489 9,111 4,122 20092010
1341-1343 Enterprise DriveIndustrial— 3,076 12,150 212 3,076 12,362 15,438 2,492 20152015
50-56 N. ParagonIndustrial— 3,985 5,433 1,212 3,985 6,645 10,630 1,651 20172017
Airport Logistics Center IIndustrial— 9,133 17,187 5,946 11,282 20,984 32,266 1,531 20192019
Roseville, Minnesota
2215 Highway 36 WestIndustrial— 1,655 5,931 1,244 1,655 7,175 8,830 2,976 19982011
2420 Long Lake RoadIndustrial— 1,373 4,135 1,043 1,373 5,178 6,551 2,137 20002011
San Leandro, California
1919 Williams StreetIndustrial— 27,739 2,038 2 27,739 2,040 29,779 290 19852019
Savannah, Georgia
198 GulfstreamIndustrial— 549 3,650 960 549 4,610 5,159 1,644 19972006
194 GulfstreamIndustrial— 412 2,359 276 412 2,635 3,047 1,027 19982006
190 GulfstreamIndustrial— 689 4,134 372 689 4,506 5,195 1,808 19992006
250 Grange RoadIndustrial— 884 7,776 39 884 7,815 8,699 3,043 20022006
248 Grange RoadIndustrial— 613 3,180 8 613 3,188 3,801 1,283 20022006
318 Grange RoadIndustrial— 880 4,131 916 880 5,047 5,927 1,892 20012006
246 Grange RoadIndustrial2,510 1,124 7,486 743 1,124 8,229 9,353 3,038 20062006
163 Portside CourtIndustrial— 8,433 7,746 260 8,433 8,006 16,439 6,136 20042006
151 Portside CourtIndustrial— 966 7,117 750 916 7,917 8,833 3,260 20032006
175 Portside CourtIndustrial5,201 4,300 13,344 2,498 5,782 14,360 20,142 6,975 20052006

-114-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
235 Jimmy Deloach ParkwayIndustrial— 1,074 7,201 1,340 1,147 8,468 9,615 3,524 20012006
239 Jimmy Deloach ParkwayIndustrial— 1,074 6,424 732 1,074 7,156 8,230 2,879 20012006
246 Jimmy Deloach ParkwayIndustrial1,525 992 4,878 47 936 4,981 5,917 2,008 20062006
200 Logistics WayIndustrial3,397 878 9,274 365 883 9,634 10,517 3,308 20062008
2509 Dean Forest RoadIndustrial— 2,392 6,040 2,409 2,914 7,927 10,841 3,253 20082011
276 Jimmy Deloach ParkwayIndustrial— 6,772 6,405 19 6,772 6,424 13,196 604 20192019
Sea Brook, Texas
Bayport Logistics 5300Industrial— 1,578 13,284 190 1,577 13,475 15,052 5,796 20092010
Bayport Logistics 5801Industrial— 5,116 7,663 171 5,116 7,834 12,950 2,563 20152015
Shakopee, Minnesota
3880 4th Avenue EastIndustrial— 1,496 6,102 36 1,522 6,112 7,634 2,310 20002011
Gateway South 2301Industrial— 2,648 11,898 10 2,647 11,909 14,556 2,346 20162016
Gateway South 2101Industrial— 4,273 16,716 22 4,273 16,738 21,011 3,184 20172017
Sharonville, Ohio
Mosteller 11400Industrial— 408 2,705 3,785 408 6,490 6,898 2,993 19971997
South Brunswick, New Jersey
10 Broadway RoadIndustrial— 15,168 13,916 1,226 15,168 15,142 30,310 3,377 20172017
St. Peters, Missouri
Premier 370 Bus Park 2001Industrial— 8,709 25,696 — 8,709 25,696 34,405 5,355 20172017
Premier 370 Bus Park 2000Industrial— 4,361 11,998 — 4,361 11,998 16,359 2,385 20172017
Premier 370 Bus Park 1000Industrial— 4,563 9,805 719 4,563 10,524 15,087 2,176 20172017
Premier 370 Bus Park 4000Industrial— 15,773 70,978 — 15,773 70,978 86,751 6,947 20192019
Premier 370 Bus Park 1001Industrial— 6,362 12,408 1,949 6,362 14,357 20,719 1,517 20192019
Stafford, Texas
10225 Mula RoadIndustrial— 3,502 2,656 3,734 3,502 6,390 9,892 3,629 20082008
Sterling, Virginia
TransDulles Centre 22601Industrial— 1,700 5,001 602 1,700 5,603 7,303 2,413 20042016
TransDulles Centre 22620Industrial— 773 1,957 16 773 1,973 2,746 852 19992016
TransDulles Centre 22626Industrial— 1,544 3,874 210 1,544 4,084 5,628 1,747 19992016
TransDulles Centre 22633Industrial— 702 1,657 47 702 1,704 2,406 786 20042016
TransDulles Centre 22635Industrial— 1,753 4,182 17 1,753 4,199 5,952 1,822 19992016
TransDulles Centre 22645Industrial— 1,228 3,411 313 1,228 3,724 4,952 1,556 20052016
TransDulles Centre 22714Industrial— 3,973 3,535 1,251 3,973 4,786 8,759 2,814 20072007
TransDulles Centre 22750Industrial— 2,068 5,018 276 2,068 5,294 7,362 2,320 20032016
TransDulles Centre 22815Industrial— 7,685 5,713 195 7,685 5,908 13,593 2,876 20002016
TransDulles Centre 22825Industrial— 1,758 4,951 689 1,758 5,640 7,398 2,193 19972016
-115-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
TransDulles Centre 22879Industrial— 2,828 8,425 261 2,828 8,686 11,514 3,711 19892016
TransDulles Centre 22880Industrial— 2,311 4,922 10 2,311 4,932 7,243 2,236 19982016
TransDulles Centre 46213Industrial— 5,912 3,965 720 5,912 4,685 10,597 1,982 20152015
Sumner, Washington
13501 38th Street EastIndustrial— 16,032 4,954 323 16,032 5,277 21,309 4,871 20052007
4800 E Valley HighwayIndustrial— 12,567 21,838 — 12,567 21,838 34,405 2,397 20042019
Suwanee, Georgia
Horizon Business 90Industrial— 153 1,169 293 153 1,462 1,615 531 20022010
Horizon Business 225Industrial— 388 2,056 703 389 2,758 3,147 1,113 19902010
Horizon Business 250Industrial— 1,381 6,356 1,172 1,381 7,528 8,909 3,210 19972010
Horizon Business 70Industrial— 813 3,416 992 812 4,409 5,221 1,603 19982010
Horizon Business 2780Industrial— 972 5,688 2,138 972 7,826 8,798 2,499 19972010
Horizon Business 25Industrial— 615 2,528 1,889 614 4,418 5,032 1,896 19992010
Horizon Business 2790Industrial— 780 4,958 — 780 4,958 5,738 1,740 20062010
1000 Northbrook ParkwayIndustrial— 643 3,597 711 643 4,308 4,951 2,035 19862010
Tampa, Florida
Fairfield Distribution 8640Industrial— 483 2,359 1,095 487 3,450 3,937 1,582 19981999
Fairfield Distribution 4720Industrial— 530 4,624 996 534 5,616 6,150 3,055 19981999
Fairfield Distribution 4758Industrial— 334 2,658 756 338 3,410 3,748 1,654 19991999
Fairfield Distribution 8600Industrial— 600 1,185 2,229 604 3,410 4,014 1,862 19991999
Fairfield Distribution 4901Industrial— 488 2,425 1,136 488 3,561 4,049 1,679 20002000
Fairfield Distribution 4727Industrial— 555 3,348 1,406 555 4,754 5,309 2,349 20012001
Fairfield Distribution 4701Industrial— 394 1,350 1,574 394 2,924 3,318 1,377 20012001
Fairfield Distribution 4661Industrial— 444 1,640 879 444 2,519 2,963 1,093 20042004
Eagle Creek Business 8701Industrial— 3,705 2,331 2,700 3,705 5,031 8,736 4,419 20062006
Eagle Creek Business 8651Industrial— 2,354 1,661 1,890 2,354 3,551 5,905 2,900 20072007
Eagle Creek Business 8601Industrial— 2,332 2,229 629 2,332 2,858 5,190 2,378 20072007
Pinebrooke Bus Center 10350Industrial— 2,457 6,211 — 2,457 6,211 8,668 191 20202020
Teterboro, New Jersey
1 Catherine StreetIndustrial— 14,376 18,788 11 14,376 18,799 33,175 3,618 20162017
Tracy, California
1400 Pescadero AvenueIndustrial— 9,633 39,644 — 9,633 39,644 49,277 13,377 20082013
West Chester, Ohio
World Park Union Centre 9287Industrial— 2,150 827 7,509 2,151 8,335 10,486 4,671 20062006
-116-

Duke Realty Corporation and Duke Realty Limited Partnership
Real Estate and Accumulated Depreciation
December 31, 2020
(in thousands of U.S. dollars, as applicable)		Schedule III
   Initial CostCost Capitalized
Subsequent to
Development or Acquisition		Gross Book Value at 12/31/2020
NameAsset TypeEncumbrancesLandBuildingsLand/Land ImpBldgs/TITotal (1)Accum. Depr. (2)Year Constructed/RenovatedYear Acquired
World Park Union Centre 9271Industrial— 557 5,923 468 557 6,391 6,948 2,595 20042004
World Park Union Centre 9266Industrial— 956 5,951 398 956 6,349 7,305 2,293 19992010
World Park Union Centre 9451Industrial— 1,036 6,199 733 1,036 6,932 7,968 2,493 19992010
World Park Union Centre 5443Industrial— 935 4,753 419 935 5,172 6,107 1,825 20052010
World Park Union Centre 9107Industrial— 986 5,985 1,541 986 7,526 8,512 2,913 19992010
World Park Union Centre 9245Industrial— 1,011 5,783 970 1,010 6,754 7,764 2,684 20012010
West Palm Beach, Florida
Park of Commerce 5655Industrial— 1,635 1,728 310 1,635 2,038 3,673 889 20102010
Park of Commerce 5720Industrial— 2,160 3,633 844 2,320 4,317 6,637 1,740 20102010
Airport Center 1701Industrial— 2,437 5,851 750 2,437 6,601 9,038 2,730 20022010
Airport Center 1805Industrial— 1,706 4,453 306 1,706 4,759 6,465 1,965 20022010
Airport Center 1865Industrial— 1,500 4,176 773 1,500 4,949 6,449 1,850 20022010
Park of Commerce #4Grounds— 5,934 — — 5,934 — 5,934 51 n/a2011
Park of Commerce #5Grounds— 6,308 — — 6,308 — 6,308 49 n/a2011
Turnpike Crossing 1315Industrial— 7,390 5,762 352 7,390 6,114 13,504 2,287 20162016
Turnpike Crossing 1333Industrial— 6,255 4,560 975 6,255 5,535 11,790 1,983 20162016
Turnpike Crossing 6747Industrial— 10,607 7,112 2,786 10,607 9,898 20,505 2,436 20172017
Turnpike Crossing 6729Industrial— 8,576 7,506 713 8,576 8,219 16,795 1,286 20182018
Turnpike Crossing 6711Industrial— 8,328 7,360 9 8,341 7,356 15,697 678 20192019
Turnpike Crossing 6717Industrial— 7,849 9,542 — 7,849 9,542 17,391 321 20202020
Wind Gap, Pennsylvania
1380 Jacobsburg RoadIndustrial— 15,500 25,247 430 15,500 25,677 41,177 2,933 20172019
Wood-Ridge, New Jersey
5 Ethel BoulevardIndustrial— 18,776 24,752 32 18,776 24,784 43,560 1,808 20192019
Accum. Depr. on Improvements of Undeveloped Land4,348 
Eliminations(12)(17)5 (12)27 
Properties held-for-sale(27,954)(44,800)(72,754)(5,976)
64,417 2,877,696 5,218,879 671,857 2,883,674 5,812,004 8,695,678 1,659,308 
(1)The tax basis (in thousands) of our real estate assets at December 31, 2020 was approximately $8,168,875 (unaudited) for federal income tax purposes.
(2)Depreciation of real estate is computed using the straight-line method not to exceed 40 years for buildings and 15 years for land improvements for properties that we develop, and not to exceed 30 years for buildings and 10 years for land improvements for properties that we acquire. Tenant improvements are depreciated over shorter periods based on lease terms (generally 3 to 10 years).

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 Real Estate AssetsAccumulated Depreciation
 202020192018202020192018
Balance at beginning of year$7,851,278 $7,248,346 $6,612,229 $1,487,593 $1,345,060 $1,196,458 
Acquisitions410,003 205,390 327,318 
Construction costs and tenant improvements796,312 635,173 683,284 
Depreciation expense297,158 272,422 256,250 
Cost of real estate sold or contributed(203,502)(176,603)(336,327)(33,808)(68,861)(69,490)
Write-off of fully depreciated assets(85,659)(61,028)(38,158)(85,659)(61,028)(38,158)
Balance at end of year including held-for-sale$8,768,432 $7,851,278 $7,248,346 $1,665,284 $1,487,593 $1,345,060 
Properties held-for-sale(72,754)(23,401)— (5,976)(7,132)(884)
Balance at end of year excluding held-for-sale$8,695,678 $7,827,877 $7,248,346 $1,659,308 $1,480,461 $1,344,176 
Other real estate investments49,477 165,500 
Real estate assets$8,745,155 $7,993,377 




See Accompanying Notes to Independent Auditors' Report
-118-

Item 16.  Form 10-K Summary
Not applicable.

-119-

The following exhibits are filed with this Form 10-K or incorporated herein by reference to the listed document previously filed with the SEC. Previously unfiled documents are noted with an asterisk (*). 
Number Description
3.1 
3.2 
3.3
3.4(i)
3.4(ii)
3.4(iii)
3.4(iv)
3.4(v)
3.4(vi)
4.1
4.2(i) 
4.2(ii) 
4.3(i) 
4.3(ii)
-120-

4.3(iii)
4.3(iv)
4.3(v)
4.3(vi)
4.3(vii)
4.3(viii)
4.3(ix)
4.3(x)
4.4
10.1(i) 
10.1(ii) 
10.1(iii)
10.1(iv)
10.2(i) 
-121-

10.2(ii)
10.3(i)
10.3(ii)
10.3(iii)
10.3(iv)
10.4(i)
10.4(ii)
10.5
10.6
10.7
10.8
10.9
10.10
-122-

21.1 
23.1 
23.2
24.1 
31.1
31.2
31.3
31.4
32.1
32.2
32.3
32.4
99.1
101.DefDefinition Linkbase Document
101.PrePresentation Linkbase Document
101.LabLabels Linkbase Document
101.CalCalculation Linkbase Document
101.SchSchema Document
101.InsInstance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
104Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101)
# Represents management contract or compensatory plan or arrangement.
* Filed herewith.
** The certifications attached as Exhibits 32.1, 32.2, 32.3 and 32.4 accompany this Report and are "furnished" to the Securities and Exchange Commission pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed "filed" by the General Partner or the Partnership, respectively, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

We will furnish to any security holder, upon written request, copies of any exhibit incorporated by reference, for a fee of 15 cents per page, to cover the costs of furnishing the exhibits. Written requests should include a representation that the person making the request was the beneficial owner of securities entitled to vote at the Annual Meeting of Shareholders.












-123-

SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
 DUKE REALTY CORPORATION
/s/ James B. Connor
 James B. Connor
 Chairman and Chief Executive Officer
(Principal Executive Officer)
/s/ Mark A. Denien
 Mark A. Denien
 Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
 DUKE REALTY LIMITED PARTNERSHIP
By: DUKE REALTY CORPORATION, its general partner
/s/ James B. Connor
 James B. Connor
 Chairman and Chief Executive Officer of the General Partner
(Principal Executive Officer)
 /s/ Mark A. Denien
 Mark A. Denien
 Executive Vice President and Chief Financial Officer of the General Partner
(Principal Financial and Accounting Officer)
Date:February 19, 2021













-124-

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. 
-125-

SignatureDateTitle
/s/ James B. Connor2/19/2021
Chairman and Chief Executive Officer
(Principal Executive Officer)
James B. Connor
/s/ Mark A. Denien2/19/2021Executive Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
Mark A. Denien
/s/ John P. Case*2/19/2021Director
John P. Case
/s/ Ngaire E. Cuneo*2/19/2021Director
Ngaire E. Cuneo
/s/ Charles R. Eitel*2/19/2021Director
Charles R. Eitel
/s/ Tamara D. Fischer*2/19/2021Director
Tamara D. Fischer*
/s/ Norman K. Jenkins*2/19/2021Director
Norman K. Jenkins
/s/ Melanie R. Sabelhaus*2/19/2021Director
Melanie R. Sabelhaus
/s/ Peter M. Scott III*2/19/2021Director
Peter M. Scott III
/s/ David P. Stockert*2/19/2021Director
David P. Stockert
/s/ Chris T. Sultemeier*2/19/2021Director
Chris T. Sultemeier
/s/ Michael E. Szymanczyk*2/19/2021Director
Michael E. Szymanczyk
/s/ Warren M.Thompson*2/19/2021Director
Warren M. Thompson
/s/ Lynn C. Thurber*2/19/2021Director
Lynn C. Thurber
-126-

* By James B. Connor, Attorney-in-Fact/s/ James B. Connor
-127-