DCT Industrial Trust(R) Reports 2009 Third Quarter Results

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.