Analyst Note
| Yousuf Hafuda |Duke Realty reported satisfactory fourth quarter results that were roughly in line with consensus FactSet estimates. The firm reported fourth quarter core funds from operations, or FFO, of $0.41 per share, a 7.9% increase as compared with core FFO of $0.38 for the fourth quarter of 2019. Meanwhile, full year 2020 core FFO came in at $1.52 per share, 5.6% higher than the $1.44 of FFO for the full year of 2019. This impressive growth caps off a year during which Duke Realty was able to comfortably exceed its pre-COVID-19 financial targets, a clear indication of the countercyclicality of industrial real estate through this ongoing crisis. Despite the positive results, we will maintain our $33 per share fair value estimate for no-moat rated Duke Realty.