(RTTNews) - Real estate investment trust Duke Realty Corp. (DRE: News ) Wednesday reported a loss in the third quarter, compared to profit in the same period last year, mainly hurt by lower revenues and impairment charges. The company also reaffirmed fiscal-2009 funds from operations, or FFO, forecast.

For the most recent quarter, the company reported loss attributable to common share holders of $322.88 million or $1.44 per share, compared to net income attributable to common share holders of $11.49 million or $0.08 per share last year. Loss from continuing operations attributable to common share holders for the quarter was $314.15 million or $1.44 per share, versus income from continuing operations of $29.18 million or $0.07 per share in earlier year.

Negative FFO for the quarter was $236.24 million or $1.02 per share, compared to FFO of $100.5 million or $0.65 per share last year. Adjusted FFO for the quarter was $74.5 million or $0.32 per share, compared to $100.5 million or $0.65 per share a year-ago.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.31 per share. Analysts' estimates typically exclude special items.

Quarterly revenues rose to $324.89 million from $308.58 million in the year-ago quarter. Seven Wall Street analysts expected revenues of $218.86 million.

Segment-wise, rental and related revenue climbed to $224.01 million from $215.26 million in the preceding year. General contractor and service fee revenue was $100.88 million, up from prior year's $93.32 million in the previous year.
Expenses for the three-month period increased to $263.91 million from $244.18 million in the comparable period last year. In the third quarter of fiscal 2009, the company incurred impairment charges of $284.85 million, while the company did not report any impairment charges in the third quarter of fiscal 2008. As a result, Duke Realty posted operating loss of $235.65 million, in comparison with operating income of $74.8 million in the same period last year.

The company noted that the impairment charges were primarily recognized as a result of further refinements in strategy including planned reductions in undeveloped land inventory in light of lower anticipated development volume and the targeting of non-strategic property dispositions to further align focus on high growth markets with an emphasis on industrial and medical properties.

In addition, the company said its board of directors declared a quarterly cash dividend on the company's common stock of $0.17 per share, or $0.68 per share on an annualized basis.The third quarter dividend will be payable November 30, 2009, to shareholders of record as of November 13, 2009. The company's policy is to pay aggregate annual dividends in 2009 in an amount generally equal to and not to exceed its estimated annual taxable income.

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