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2017 Annual Report

2017 Highlights

97.8% Operating occupancy as of 12/31/17

in development starts

FPO Growth
per share

Increase in dividend
for 2018

Cash NOI Growth

Rent Growth on a
Straight-line Basis



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

Financial Highlights

amounts in thousands, except per share data

2017 2016
Rental Revenues $423,026 $391,360
Total Net Operating Income $320,026 $294,543
Funds From Operations (FFO)* $236,886 $214,715
2017 2016
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

DCT’s People

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


DCT Locations


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

DCT’s Seattle office has become a force in the local industrial market, building the Company’s Seattle portfolio to over 4 million square feet. This growth is a testament to the team’s creativity and vision required to consistently create value.

This market-centric approach encourages the company to find and execute one-of-a-kind, value-creating opportunities that are specific to their market dynamics.