DCT Industrial Trust(R) Reports 2009 Third Quarter Results
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DENVER, Oct. 29 /PRNewswire-FirstCall/ -- DCT Industrial Trust® (NYSE: DCT), a leading industrial real estate investment trust, today announced financial results for the three and nine months ended September 30, 2009.
Funds from operations (FFO) attributable to common stockholders and unitholders for the third quarter of 2009 totaled $23.3 million, or $0.10 per diluted share, compared with $30.8 million, or $0.15 per diluted share, reported for the third quarter of 2008. FFO for the nine months ended September 30, 2009 was $82.0 million, or $0.37 per diluted share, compared with $93.4 million, or $0.45 per diluted share, reported for the nine months ended September 30, 2008. Excluding $0.01 per share of severance charges and impairment losses, FFO was $0.11 per diluted share for the third quarter of 2009 and $0.39 per diluted share for the nine months ended September 30, 2009.
Net loss attributable to common stockholders for the third quarter of 2009 was $(0.07) per diluted share, compared with net income attributable to common stockholders of $0.04 per diluted share reported for the third quarter of 2008. Net loss attributable to common stockholders for the nine months ended September 30, 2009 was $(0.08) per diluted share, compared with net income attributable to common stockholders of $0.13 per diluted share for the nine months ended September 30, 2008. The net loss attributable to common stockholders for the third quarter of 2009 and for the nine months ended September 30, 2009 includes $0.04 per share of losses on business combinations.
"While the operating environment remains challenging, leasing activity increased significantly during the third quarter. We are hopeful that the early signs of stabilization will translate into a sustained recovery," commented Phil Hawkins, Chief Executive Officer of DCT Industrial Trust. "We are also beginning to see a slight increase in acquisition activity, which is encouraging. We have pursued, and will continue to pursue, attractive investment opportunities that meet our return and quality criteria in select markets and capitalize on our strong financial position."
Balance Sheet
DCT's balance sheet remains strong, with consolidated net debt to book value of total assets (less cash and before depreciation and amortization) of 36.5% as of September 30, 2009, compared with 38.0% as of December 31, 2008. The Company's fixed charge coverage for the third quarter of 2009 was 2.6 times. During the third quarter, DCT prepaid $52.1 million of January 2010 maturities and received commitments from certain lenders to extend $70.0 million of 2012 maturities until 2019.
Operating Portfolio
As of September 30, 2009, DCT(TM) owned 374 consolidated operating properties, comprising 52.8 million square feet. Net operating income was $42.1 million in the third quarter of 2009, compared with $44.9 million reported for the third quarter of 2008.
DCT's consolidated operating portfolio occupancy was 88.3% as of September 30, 2009, compared with 87.3% as of June 30, 2009. Including an additional 14.6 million square feet of operating properties held in joint ventures, occupancy as of September 30, 2009 was 90.0%, compared with 89.0% as of June 30, 2009.
Third quarter 2009 same store net operating income declined 8.4% on a cash basis and 9.4% on a GAAP basis, excluding revenue from lease terminations, when compared to the same period last year. Occupancy of same store properties averaged 87.8% in the third quarter of 2009, compared with 91.6% in the third quarter of 2008.
Leasing activity increased during the third quarter of 2009 to 2.9 million square feet of leases signed. Tenant retention was strong at a rate of 88.2% for the third quarter of 2009, while rents on signed leases for which there was a prior tenant increased 5.7% on a GAAP basis and declined 5.9% on a cash basis.
Capital Deployment Activity
DCT completed its forward commitment program with Nexxus in Monterrey, Mexico in the third quarter of 2009. The Company took ownership of the final three bulk distribution buildings comprising 354,000 square feet and completed a 36,000 square foot expansion.
During the third quarter, DCT also acquired its partners' interests in two bulk distribution properties in Southern California totaling 872,000 square feet, one 570,000 square foot industrial building in Nashville and 28 acres of land in Indianapolis as part of the dissolution of three development joint ventures.
Dividend
DCT Industrial Trust's Board of Directors has declared a $0.07 per share quarterly cash dividend, payable on January 15, 2010, to stockholders of record as of December 30, 2009.
Guidance
DCT narrowed guidance, excluding severance charges and impairments, for 2009 FFO to $0.49 to $0.51 per diluted share and updated 2009 net loss guidance to $(0.08) to $(0.06) per diluted share. The Company's initial guidance, excluding real estate gains, losses and impairments, for 2010 FFO is $0.36 to $0.44 per diluted share and net loss of $(0.15) to $(0.07) per diluted share. Among other things, 2010 guidance factors in higher interest costs from anticipated refinancing of debt prior to their scheduled maturities, as well as the continuing impact of the weakened economy on operating results.
Conference Call Information
DCT(TM) will host a conference call to discuss third quarter 2009 results and its recent business activities on Friday, October 30, 2009 at 11:00 a.m. Eastern time. Stockholders and interested parties may listen to a live broadcast of the conference call by dialing (800) 860-2442 or (412) 858-4600. A telephone replay will be available for one week following the call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode 434190. A live webcast and replay of the conference call will be available in the investor relations section of the DCT(TM) website at www.dctindustrial.com.
Supplemental information will be available in the Investor Relations section of the Company's website at www.dctindustrial.com or by e-mail request at investorrelations@dctindustrial.com. Interested parties may also obtain supplemental information from the SEC's website at www.sec.gov.
About DCT Industrial Trust
DCT Industrial Trust is a leading industrial real estate company that owns, operates and develops high-quality bulk distribution and light industrial properties in high-volume distribution markets in the U.S. and Mexico. As of September 30, 2009, the Company owned, managed or had under development 76.2 million square feet of assets leased to approximately 850 customers, including 14.6 million square feet managed on behalf of three institutional joint venture partners. Additional information is available at www.dctindustrial.com.
DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except per share information)
September 30, December 31,
2009 2008
---- ----
ASSETS (unaudited)
Land $516,810 $511,730
Buildings and improvements 2,197,205 2,107,756
Intangible lease assets 120,073 187,605
Construction in progress 66,843 90,770
------ ------
Total Investment in Properties 2,900,931 2,897,861
Less accumulated depreciation
and amortization (426,437) (417,404)
-------- --------
Net Investment in Properties 2,474,494 2,480,457
Investments in and advances to
unconsolidated joint ventures 109,494 125,452
------- -------
Net Investment in Real Estate 2,583,988 2,605,909
Cash and cash equivalents 8,802 19,681
Notes receivable 18,050 30,387
Deferred loan costs, net 4,483 5,098
Straight-line rent and other
receivables, net of allowance
for doubtful accounts
of $2,285 and $843, respectively 29,516 31,747
Other assets, net 13,292 11,021
Assets held for sale 24,157 -
------ ---
Total Assets $2,682,288 $2,703,843
========== ==========
LIABILITIES AND EQUITY
Liabilities:
Accounts payable and accrued expenses $37,370 $35,193
Distributions payable 16,527 16,630
Tenant prepaids and security deposits 15,020 17,601
Other liabilities 10,323 26,472
Intangible lease liability, net 6,489 6,813
Senior unsecured notes 625,000 625,000
Mortgage notes 513,722 574,634
Liabilities related to assets
held for sale 947 -
--- ---
Total Liabilities 1,225,398 1,302,343
Equity:
Preferred stock, $0.01 par
value, 50,000,000 shares
authorized, none outstanding - -
Shares-in-trust, $0.01 par
value, 100,000,000 shares
authorized, none outstanding - -
Common stock, $0.01 par value,
350,000,000 shares
authorized, 205,942,157
and 175,141,387 shares issued
and outstanding as of
September 30, 2009 and
December 31, 2008, respectively 2,059 1,751
Additional paid-in capital 1,798,632 1,657,923
Distributions in excess of earnings (572,678) (513,040)
Accumulated other comprehensive loss (15,018) (22,463)
------- -------
Total Stockholders' Equity 1,212,995 1,124,171
Noncontrolling interests 243,895 277,329
------- -------
Total Equity 1,456,890 1,401,500
--------- ---------
Total Liabilities and Equity $2,682,288 $2,703,843
========== ==========
Total debt net of cash:
Senior unsecured notes and
mortgage notes $1,138,722 $1,199,634
Less cash and cash equivalents (8,802) (19,681)
------ --------
Net debt $1,129,920 $1,179,953
========== ==========
Book value of total assets less cash
and before depreciation:
Total assets $2,682,288 $2,703,843
Less cash and cash equivalents (8,802) (19,681)
Add back accumulated depreciation and
amortization 426,437 417,404
------- -------
Book value of total assets less cash
and before depreciation
and amortization $3,099,923 $3,101,566
========== ==========
Percentage of debt to total assets 42.5% 44.4%
==== ====
Percentage of net debt to book value
of total assets less cash and before
depreciation and amortization 36.5% 38.0%
==== ====
DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share information)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
REVENUES:
Rental revenues $60,638 $60,674 $181,502 $182,887
Institutional capital
management and other fees 701 763 2,048 2,237
--- --- ----- -----
Total Revenues 61,339 61,437 183,550 185,124
------ ------ ------- -------
OPERATING EXPENSES:
Rental expenses 9,347 7,523 25,230 23,061
Real estate taxes 9,193 8,237 26,621 24,871
Real estate related
depreciation
and amortization 27,805 26,080 81,669 81,699
General and administrative 9,081 4,879 21,003 15,844
----- ----- ------ ------
Total Operating Expenses 55,426 46,719 154,523 145,475
------ ------ ------- -------
Operating Income 5,913 14,718 29,027 39,649
OTHER INCOME AND (EXPENSE):
Equity in income
(losses) of
unconsolidated
joint ventures, net (400) 457 2,165 1,183
Loss on business
combinations (10,156) - (10,156) -
Interest expense (13,518) (12,966) (40,185) (38,471)
Interest income and other 353 259 1,254 1,260
Income taxes (471) (2) (2,024) (891)
---- --- ------ ----
Income (Loss) From
Continuing Operations (18,279) 2,466 (19,919) 2,730
Income from discontinued
operations 1,199 4,894 2,534 23,372
----- ----- ----- ------
Income (Loss)
Before Gain On
Dispositions Of
Real Estate Interests (17,080) 7,360 (17,385) 26,102
Gain on dispositions
of real estate interests 24 118 61 525
--- --- --- ---
Consolidated
Net Income (Loss) (17,056) 7,478 (17,324) 26,627
Net (income)
loss attributable
to noncontrolling
interests 2,473 (1,238) 2,574 (4,507)
----- ------ ----- ------
Net Income (Loss)
Attributable
to DCT Common
Stockholders $(14,583) $6,240 $(14,750) $22,120
======== ====== ======== =======
EARNINGS PER COMMON SHARE -
BASIC:
Income (Loss) From
Continuing Operations $(0.08) $0.01 $(0.09) $0.01
Income from discontinued
operations 0.01 0.03 0.01 0.12
Gain on dispositions
of real estate interests 0.00 0.00 0.00 0.00
---- ---- ---- ----
Net Income (Loss)
Attributable to DCT Common
Stockholders $(0.07) $0.04 $(0.08) $0.13
====== ===== ====== =====
EARNINGS PER COMMON SHARE -
DILUTED:
Income (Loss) From
Continuing Operations $(0.08) $0.01 $(0.09) $0.01
Income from discontinued
operations 0.01 0.03 0.01 0.12
Gain on dispositions
of real estate interests 0.00 0.00 0.00 0.00
---- ---- ---- ----
Net Income (Loss)
Attributable to DCT Common
Stockholders $(0.07) $0.04 $(0.08) $0.13
====== ===== ====== =====
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 204,433 172,685 188,051 170,840
======= ======= ======= =======
Diluted 204,433 172,696 188,051 170,840
======= ======= ======= =======
AMOUNTS ATTRIBUTABLE
TO DCT COMMON STOCKHOLDERS:
Income (Loss) From
Continuing Operations $(15,646) $2,070 $(16,973) $2,382
Income from discontinued
operations 1,042 4,072 2,171 19,310
Gain on dispositions
of real estate interests 21 98 52 428
--- --- --- ---
Net Income (Loss)
Attributable to DCT Common
Stockholders $(14,583) $6,240 $(14,750) $22,120
======== ====== ======== =======
Distributions declared per
common share $0.07 $0.16 $0.23 $0.48
===== ===== ===== =====
DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES
Reconciliation of Net Income to Funds From Operations
(in thousands, except per share information)
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Net Income (Loss) Attributable
to DCT Common Stockholders $(14,583) $6,240 $(14,750) $22,120
Adjustments:
Real estate related
depreciation and
amortization 28,035 26,665 82,478 85,074
Equity in (income)
losses of unconsolidated
joint ventures, net 400 (457) (2,165) (1,183)
Equity in FFO of unconsolidated
joint ventures 1,730 1,549 9,459 4,533
(Gain) on dispositions
of real estate interests (734) (4,515) (1,502) (22,046)
Loss on business combinations 10,156 - 10,156 -
Gain on dispositions of
non-depreciated real estate 713 63 826 271
Noncontrolling interest in
the operating partnership's
share of the above
adjustments (5,384) (3,919) (14,283) (11,870)
FFO attributable to unitholders 2,933 5,179 11,756 16,484
----- ----- ------ ------
Funds from operations
attributable to common
stockholders and unitholders -
basic and diluted $23,266 $30,805 $81,975 $93,383
======= ======= ======= =======
FFO per common share and
unit, basic and diluted $0.10 $0.15 $0.37 $0.45
===== ===== ===== =====
Adjustments for impairment
and severance costs:
Impairment losses (recoveries)
on real estate assets
held for sale $630 $(52) $630 $1,180
Severance costs 2,669 - 2,669 -
----- --- ----- ---
FFO, excluding impairment
losses and severance costs,
attributable to common
stockholders and
unitholders, basic and
diluted $26,565 $30,753 $85,274 $94,563
======= ======= ======= =======
FFO, as adjusted, per
common share and unit,
basic and diluted $0.11 $0.15 $0.39 $0.45
===== ===== ===== =====
FFO weighted average
common shares and units
outstanding:
Common shares for earnings
per share - basic: 204,433 172,685 188,051 170,840
Participating securities 1,648 1,197 1,599 1,118
Units 30,880 34,930 31,484 36,670
------ ------ ------ ------
FFO weighted average
common shares, participating
securities and units
outstanding - basic: 236,961 208,812 22,134 208,628
Dilutive common stock
equivalents 356 11 127 -
--- --- --- ---
FFO weighted average common
shares, participating
securities and units
outstanding - diluted: 237,317 208,823 221,261 208,628
======= ======= ======= =======
Guidance:
Full-Year Range for 2009
------------------------
Guidance(1): (low) (high)
---- -----
Earnings per diluted share $(0.09) $(0.07)
Severance costs 0.01 0.01
---- ----
Earnings per diluted share, adjusted $(0.08) $(0.06)
Real estate related depreciation
and amortization(2) 0.54 0.54
Loss on business combinations 0.05 0.05
Non-controlling interest and other (0.02) (0.02)
----- -----
FFO attributable to common shares per
diluted share $0.49 $0.51
===== =====
Full-Year Range for 2010
------------------------
Guidance(1): (low) (high)
---- -----
Earnings per diluted share $(0.15) $(0.07)
Real estate related depreciation
and amortization(2) 0.51 0.51
---- ----
FFO attributable to common shares per
diluted share $0.36 $0.44
===== =====
(1) Guidance excludes future real estate gains, losses or impairments.
(2) Includes pro rata share of real estate depreciation and amortization
from unconsolidated joint ventures.
The following table shows the calculation of our Fixed Charge Coverage for
the three and nine months ended September 30, 2009 and 2008 (in
thousands):
Three Months Ended Nine Months Ended
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Net Income (Loss)
Attributable to DCT
Common Stockholders $(14,583) $6,240 $(14,750) $22,120
Interest expense (1) 13,518 13,339 40,244 39,158
Pro rata share of
interest expense from
unconsolidated JVs 1,136 798 3,290 1,886
Real estate related
depreciation and
amortization (1) 28,035 26,665 82,478 85,074
Pro rata share of
real estate related
depreciation and
amortization from
unconsolidated JVs 1,907 809 6,877 3,187
Income taxes (1) 472 2 2,029 916
Stock-based compensation
amortization 3,227 863 5,369 2,458
Noncontrolling interests (1) (2,473) 1,238 (2,574) 4,507
Loss on business
combinations 10,156 - 10,156 -
Non-FFO (gains)
losses on dispositions
of real estate
interests, net (21) (4,504) (676) (20,595)
--- ------ ---- -------
Adjusted EBITDA (2) $41,374 $45,450 $132,443 $138,711
======= ======= ======== ========
Calculation of Fixed
Charges:
Interest expense
excluding financing
obligations (1) $13,518 $13,339 $40,244 $39,106
Interest expense
related to financing
obligations - - - 52
Capitalized interest 1,430 1,991 4,603 5,910
Amortization of loan
costs and debt
premium/discount (368) (87) (1,036) 131
Pro rata share of
interest expense from
unconsolidated JVs 1,136 798 3,290 1,886
----- --- ----- -----
Total Fixed Charges $15,716 $16,041 $47,101 $47,085
======= ======= ======= =======
Fixed Charge Coverage 2.6 2.8 2.8 2.9
=== === === ===
(1) Includes amounts related to discontinued operations.
(2) Adjusted EBITDA represents net income (loss) attributable to DCT
common stockholders before interest, taxes, depreciation,
amortization, stock-based compensation expense, noncontrolling
interest, impairment losses and excludes non-FFO gains on disposed
assets. We use adjusted EBITDA to measure our operating performance
and to provide investors relevant and useful information because it
allows fixed income investors to view income from our operations on
an unleveraged basis before the effects of irregular items and
certain non-cash items, such as deprecation and amortization, non-FFO
gains on dispositions of real estate interests and impairment losses.
The following table is a reconciliation of our property net operating
income to our reported "Income (Loss) From Continuing Operations" for the
three and nine months ended September 30, 2009 and 2008 (in thousands):
Three Months Ended Nine Months Ended
September 30, September 30,
------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Income (Loss) From
Continuing Operations $(18,279) $2,466 $(19,919) $2,730
Income taxes 471 2 2,024 891
Interest income and other (353) (259) (1,254) (1,260)
Interest expense 13,518 12,966 40,185 38,471
Equity in income (losses) of
unconsolidated joint
ventures, net 400 (457) (2,165) (1,183)
Loss on business combinations 10,156 - 10,156 -
General and
administrative expense 9,081 4,879 21,003 15,844
Real estate related depreciation
and amortization 27,805 26,080 81,669 81,699
Institutional capital
management and other fees (701) (763) (2,048) (2,237)
---- ---- ------ ------
Total net operating income 42,098 44,914 129,651 134,955
Less net operating
income - non-same store
properties (1,920) (740) (5,115) (2,361)
------ ---- ------ ------
Same store net operating
income 40,178 44,174 124,536 132,594
Less revenue from lease
terminations (408) (282) (1,851) (597)
---- ---- ------ ----
Same store net operating
income, excluding
revenue from
lease terminations 39,770 43,892 122,685 131,997
Less straight-line rents (73) (456) (231) (2,387)
Add back amortization
of above/(below) market rents 263 195 1,001 927
--- --- ----- ---
Same store cash
net operating income,
excluding revenue from
lease terminations $39,960 $43,631 $123,445 $130,537
======= ======= ======== ========
Financial Measures
Net operating income ("NOI") is defined as rental revenue, including reimbursements, less rental expenses and real estate taxes, and excludes depreciation, amortization, general and administrative expenses and interest expense. DCT Industrial considers NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, to be appropriate supplemental performance measures because they reflect the operating performance of DCT Industrial's properties and exclude certain items that are not considered to be controllable in connection with the management of the property such as depreciation, interest expense, interest income, revenue from lease terminations and general and administrative expenses. However, these measures should not be viewed as alternative measures of DCT Industrial's financial performance since they exclude expenses which could materially impact our results of operations. Further, DCT Industrial's NOI, same store NOI, excluding revenue from lease terminations, and cash basis same store NOI, excluding revenue from lease terminations, may not be comparable to that of other real estate companies, as they may use different methodologies for calculating these measures. Additionally, lease termination revenue is excluded as it is not considered to be indicative of recurring operating expense. Therefore, DCT Industrial believes net income (loss) attributable to common stockholders, as defined by GAAP, to be the most appropriate measure to evaluate DCT Industrial's overall financial performance.
DCT Industrial believes that net income (loss) attributable to common stockholders, as defined by GAAP, is the most appropriate earnings measure. However, DCT Industrial considers funds from operations ("FFO"), as defined by the National Association of Real Estate Investment Trusts ("NAREIT"), to be a useful supplemental, non-GAAP measure of DCT Industrial's operating performance. NAREIT developed FFO as a relative measure of performance of an equity REIT in order to recognize that the value of income-producing real estate historically has not depreciated on the basis determined under GAAP. FFO is generally defined as net income (loss) attributable to common stockholders, calculated in accordance with GAAP, plus real estate-related depreciation and amortization, less gains (or losses) from dispositions of operating real estate held for investment purposes and adjustments to derive DCT Industrial's pro rata share of FFO of unconsolidated joint ventures. We exclude gains and losses on business combinations and include the gains or losses from dispositions of properties which were acquired or developed with the intention to sell or contribute to an investment fund in our definition of FFO. Although the NAREIT definition of FFO predates the guidance for accounting for gains and losses on business combinations, we believe that excluding such gains and losses is consistent with the key objective of FFO as a performance measure. We also present FFO excluding severance charges and impairment losses. We believe that excluding these non-routine items provides a more meaningful and consistent comparison of our operating performance. Readers should note that FFO captures neither the changes in the value of DCT Industrial's properties that result from use or market conditions, nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of DCT Industrial's properties, all of which have real economic effect and could materially impact DCT Industrial's results from operations. NAREIT's definition of FFO is subject to interpretation and modifications to the NAREIT definition of FFO is common. Accordingly, DCT Industrial's FFO may not be comparable to such other REITs' FFO and FFO should be considered only as a supplement to net income (loss) attributable to common stockholders as a measure of DCT Industrial's performance.
DCT Industrial calculates our fixed charge coverage calculation based on adjusted EBITDA, which represents net income (loss) attributable to DCT common stockholders before interest, taxes, depreciation, amortization, stock-based compensation expense, noncontrolling interest, impairment losses and excludes non-FFO gains on disposed assets. We use adjusted EBITDA to measure our operating performance and to provide investors relevant and useful information because it allows fixed income investors to view income from our operations on an unleveraged basis before the effects of non-cash items, such as depreciation and amortization and stock-based compensation expense, and irregular items, such as non-FFO gains from the dispositions of real estate and impairment losses.
Forward-Looking Information
The Company makes statements in this document that are considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, which are usually identified by the use of words such as "anticipates," "believes," "estimates," "expects," "intends," "may," "plans," "projects," "seeks," "should," "will," and variations of such words or similar expressions. The Company intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of complying with those safe harbor provisions. These forward-looking statements reflect the Company's current views about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Company and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, the Company can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond its control including, without limitation: the competitive environment in which the Company operates; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for tenants in such markets, particularly in light of the current economic slow-down in the U.S. and internationally; decreased rental rates or increasing vacancy rates; defaults on or non-renewal of leases by tenants; acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections; the timing of acquisitions and dispositions; natural disasters such as hurricanes, fires and earthquakes; national, international, regional and local economic conditions, including, in particular the current economic slow-down in the U.S. and internationally; the general level of interest rates and the availability of debt financing, particularly in light of the recent disruption in the credit markets; energy costs; the terms of governmental regulations that affect the Company and interpretations of those regulations, including changes in real estate and zoning laws and increases in real property tax rates; financing risks, including the risk that the Company's cash flows from operations may be insufficient to meet required payments of principal and interest; lack of or insufficient amounts of insurance; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; the consequences of future terrorist attacks; possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the Company; and other risks and uncertainties detailed from time to time in DCT Industrial Trust's filings with the Securities and Exchange Commission. In addition, the Company's current and continuing qualification as a REIT involves the application of highly technical and complex provisions of the Internal Revenue Code of 1986, or the Code, and depends on its ability to meet the various requirements imposed by the Code through actual operating results, distribution levels and diversity of stock ownership. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE DCT Industrial Trust
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