97.8% Operating occupancy as of 12/31/17
in development starts
Increase in dividend
Cash NOI Growth
Rent Growth on a
2017 was a year of significant success and momentum for DCT. Our performance was outstanding across all fronts, with every key operating metric hitting historical highs, resulting in a total shareholder return of 25.7%. Occupancy in our operating portfolio ended the year at 97.8%, a level that was unimaginable just a few years ago. Net-effective rents on leases signed during the year increased by 28.5% over the prior lease. Higher occupancy and rising rental rates drove 8% increases in both same-store NOI and FFO per share. As a result of our strong operating and financial performance, DCT’s Board of Directors increased the dividend for 2018 by 16.1%.
Similar to the past several years, DCT is responding to this favorable environment by aggressively operating our portfolio and developing new buildings in our core markets—creating substantial value.
Development Under Construction as of 12/31/17
amounts in thousands, except per share data
|Total Net Operating Income||$320,026||$294,543|
|Funds From Operations (FFO)*||$236,886||$214,715|
|FFO per Diluted Share*||$2.45||$2.27|
|Total Consolidated Operating Year-end Square Feet||65,114||63,701|
|Average Consolidated Operating Occupancy||97.5%||95.8%|
* Adjusted to exclude real estate impairments, hedge ineffectiveness, acquisition costs, and the impact of the Tax Cuts and Jobs Act of 2017
While our business is typically thought of in terms of the physical real estate, it is truly our people make the difference between average results and industry-leading results. It is their knowledge, perseverance and creativity that lead us to exceed expectations, time and time again.
It truly is our people who make the difference between average results and industry-leading results.
DCT’s market teams are continually searching to find transactions that others have been unable to execute. In 2017, our market teams commenced construction on 3.9 million square feet with a projected investment of $323 million and a 6.8% average stabilized yield. In addition, DCT sold $218 million of assets,* exited three non-strategic markets and acquired $129 million of assets to further improve portfolio quality and growth potential.
* Includes dispositions closed in January 2018
Seattle Market Team
Seattle has been an outstanding growth and value-creation story for DCT. And, 2017 was another excellent year for this market team as they acquired 62 acres of land, began construction on 831,000 square feet across two buildings, with a projected investment of $80 million, and stabilized 354,000 square feet of development and redevelopment.
» In 2017 Seattle team
acquired 62 acres of land
and began construction on
831,000 square feet