DENVER, Aug. 4 /EMWNews/ -- DCT Industrial Trust Inc.

(NYSE: DCT), a leading industrial real estate investment trust, today

announced financial results for the quarter and six months ended June 30,

2008.



    Funds from operations (FFO) attributable to common stockholders totaled

$32.3 million for the second quarter of 2008 and $62.6 million for the six

months ended June 30, 2008. FFO was $0.16 per diluted share for the second

quarter of 2008 and $0.30 per diluted share for the six months ended June

30, 2008, compared to $0.19 per diluted share and $0.36 per diluted share

reported for the same periods in 2007.



    Net income attributable to common stockholders for the second quarter

of 2008 was $15.5 million, or $0.09 per diluted share, compared to $7.8

million, or $0.05 per diluted share, reported for the second quarter of

2007. Net income for the six months ended June 30, 2008 was $15.9 million,

or $0.09 per diluted share, compared to net income of $23.2 million, or

$0.14 per diluted share, for the six months ended June 30, 2007.



    Second quarter 2008 net income includes $16.7 million of gains and a

$1.2 million impairment charge related to the contribution or sale of real

estate. While second quarter FFO did not include any real estate gains, it

was reduced by the impairment charge. Second quarter 2007 net income

included $9.1 million of gains on the contribution or sale of real estate,

of which $9.0 million was included in FFO.



    "While our leasing activity and rental rate growth remain steady and

in-line with expectations, our caution for the remainder of 2008 has

increased," said Phil Hawkins, Chief Executive Officer of DCT Industrial

Trust. "We've taken additional steps to further strengthen our balance

sheet this year, including extending the maturity on $175 million of an

unsecured note by five years and closing a $300 million senior unsecured

term loan, both with very favorable terms, and disposing of $89 million of

low-growth, non-strategic assets. We remain confident that our financial

flexibility will benefit us through this softer economic environment, and

we will continue to focus on executing our business plan to build long-term

value."



    Operating Portfolio



    As of June 30, 2008, the Company owned 378 consolidated operating

properties, or 53.0 million square feet, compared to 363 consolidated

operating properties, or 52.5 million square feet, as of June 30, 2007. Net

operating income was $46.5 million in the second quarter of 2008, compared

to $45.7 million reported for the second quarter of 2007. DCT's

consolidated operating portfolio occupancy declined to 91.8% as of June 30,

2008, compared to 92.8% as of June 30, 2007, primarily due to the

bankruptcy of Wickes Furniture. Including an additional 13.0 million square

feet of operating properties held in joint ventures, occupancy as of June

30, 2008 was 93.3%, compared to 93.6% a year ago.



    Same store net operating income increased 1.3% on a cash basis and 0.3%

on a GAAP basis in the second quarter of 2008, when compared to the same

period last year. Occupancy of same store properties was 92.3% as of June

30, 2008, compared to 93.1% as of June 30, 2007.



    Leasing activity increased with 2.5 million square feet of leases

signed during the second quarter, up from 1.9 million square feet of leases

signed in the first quarter of 2008. Tenant retention was 74.4% for the

second quarter of 2008 and 73.3% year to date. Realized rent growth on

signed leases for which there was a prior tenant averaged 12.7% on a GAAP

basis and 5.4% on a cash basis in the second quarter of 2008.



    Bad debt expense totaled $0.2 million in the second quarter of 2008,

compared to $0.6 million last quarter and $0.6 million in the second

quarter of 2007.



    Disposition and Development Activity



    Consistent with its 2008 business plan, DCT Industrial Trust did not

acquire any buildings and disposed of four assets totaling 1.2 million

square feet for a combined sales price of approximately $71.1 million

during the second quarter of 2008. Following the end of the second quarter,

DCT disposed of four industrial buildings totaling 199,000 square feet for

a combined sales price of approximately $11.8 million, bringing year to

date sales to more than $89 million.



    As of June 30, 2008, DCT Industrial Trust had 8.9 million square feet

under development.



    "While we completed the lease-up of two development projects in Chicago

and Southern California and two projects in Mexico, we have experienced a

slowdown in the leasing of some of our other development assets," said Jim

Cochran, President and Chief Investment Officer of DCT Industrial Trust.

"Given our caution for the rest of the year, we have decided to move the

stabilization dates for several projects from 2008 to 2009."



    Financing Activity



    During the second quarter, DCT Industrial Trust closed a two-year $300

million senior unsecured term loan that can be extended for one year at the

Company's option. The first $100 million was drawn on June 9, 2008 and used

to repay maturing unsecured notes. The remaining $200 million can be funded

anytime up to December 31, 2008, at DCT's discretion. DCT Industrial Trust

has entered into a swap to fix LIBOR on the initial funding for two years.

The loan currently bears interest at LIBOR plus 150 basis points, based on

the Company's current leverage, bringing the effective rate to 4.73% per

annum.



    Balance Sheet



    DCT Industrial's balance sheet remains strong, with consolidated debt

to book value of total assets (before depreciation and amortization) of

37.1% as of June 30, 2008, compared to 37.4% as of December 31, 2007. The

Company's fixed charge coverage for the second quarter of 2008 was 3.2

times. Excluding $1.4 million of income related to forward-starting

interest rate swaps, the fixed charge coverage was 3.0 times.



    Dividend



    DCT Industrial Trust's Board of Directors has declared a $0.16 per

share quarterly cash dividend, payable on October 17, 2008, to stockholders

of record as of October 6, 2008.



    Guidance



    DCT Industrial has lowered its 2008 guidance to FFO per diluted share

of $0.60 to $0.66 and net income of $0.09 to $0.15 per diluted share,

primarily due to a decrease in expectations for development gains.



    Conference Call Information



    DCT Industrial Trust will host a conference call to discuss second

quarter results and its recent business activities on Tuesday, August 5,

2008 at 12:00 PM Eastern. 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 five days following the

call by dialing (877) 344-7529 or (412) 317-0088 and entering the passcode

420896. A live webcast and replay of the conference call will be available

on the investor relations page of DCT's website at

http://www.dctindustrial.com.



    Supplemental information will be available in the Investor Relations

section of the Company's website at http://www.dctindustrial.com or by

e-mail request at [email protected]. Interested parties

may also obtain supplemental information from the SEC's website at

http://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 June 30, 2008, the Company owned, managed or had under

development 75.7 million square feet of assets leased to approximately 850

customers, including 16.9 million square feet managed on behalf of three

institutional joint venture partners. Additional information is available

at http://www.dctindustrial.com.










                  DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

                         Consolidated Balance Sheets

            (in thousands, except share and per share information)



                                                     June 30,   December 31,

                                                       2008         2007

                                                   (unaudited)

    ASSETS

      Land                                           $509,319     $519,584

      Buildings and improvements                    2,119,216    2,139,961

      Intangible lease assets                         182,012      188,079

      Construction in progress                         54,143       35,282

          Total Investment in Properties            2,864,690    2,882,906

      Less accumulated depreciation and

       amortization                                  (359,512)    (310,691)

          Net Investment in Properties              2,505,178    2,572,215

      Investments in and advances to unconsolidated

       joint ventures                                 122,173      102,750

          Net Investment in Real Estate             2,627,351    2,674,965

      Cash and cash equivalents                        23,697       30,481

      Notes receivable                                 20,467       27,398

      Deferred loan costs, net                          5,793        4,828

      Deferred loan costs - financing

       obligations, net                                     -        1,345

      Straight-line rent and other receivables         27,860       26,879

      Other assets, net                                 9,453       13,096

      Assets held for sale                              8,912            -

          Total Assets                             $2,723,533   $2,778,992





    LIABILITIES AND STOCKHOLDERS' EQUITY

    Liabilities:

      Accounts payable and accrued expenses           $38,667      $31,267

      Distributions payable                            33,245       32,994

      Tenant prepaids and security deposits            15,753       13,896

      Other liabilities                                 6,663        8,117

      Intangible lease liability, net                   8,066        9,022

      Line of credit                                  103,000       82,000

      Senior unsecured notes                          425,000      425,000

      Mortgage notes                                  615,526      649,568

      Financing obligations                                 -       14,674

      Liabilities related to assets held for sale         343            -

          Total Liabilities                         1,246,263    1,266,538





    Minority interests                                318,088      349,782

    Stockholders' 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, 172,136,070 and 168,379,863

       shares issued and outstanding as of June 30,

       2008 and December 31, 2007, respectively         1,721        1,684

      Additional paid-in capital                    1,629,288    1,593,165

      Distributions in excess of earnings            (464,864)    (426,210)

      Accumulated other comprehensive loss             (6,963)      (5,967)

              Total Stockholders' Equity            1,159,182    1,162,672

              Total Liabilities and Stockholders'

               Equity                              $2,723,533   $2,778,992

    Book value of total assets before depreciation:

      Total Assets                                 $2,723,533   $2,778,992

      Add back accumulated depreciation and

       amortization                                   359,512      310,691

              Book value of total assets before

               depreciation and amortization       $3,083,045   $3,089,683

    Percentage of debt to total assets                   42.0%        41.6%

    Percentage of debt to book value of total assets

     before depreciation and amortization                37.1%        37.4%







                  DCT INDUSTRIAL TRUST INC. AND SUBSIDIARIES

                    Consolidated Statements of Operations

           (unaudited, in thousands, except per share information)



                             Three Months Ended        Six Months Ended

                                  June 30,                 June 30,

                             2008         2007         2008         2007

    REVENUES:

      Rental revenues      $62,393      $60,868     $125,897     $123,997

      Institutional

       capital management

       and other fees          614          572        1,474        1,318

        Total Revenues      63,007       61,440      127,371      125,315



    OPERATING EXPENSES:

      Rental expenses        7,327        7,243       15,845       14,836

      Real estate taxes      8,551        7,974       16,935       16,210

      Real estate related

       depreciation and

       amortization         28,893       27,510       57,148       55,404

      General and

       administrative        5,083        5,677       10,965        9,733

        Total Operating

         Expenses           49,854       48,404      100,893       96,183

          Operating Income  13,153       13,036       26,478       29,132



    OTHER INCOME AND EXPENSE:

      Equity in income (loss)

       of unconsolidated joint

       ventures, net           439          (31)         726           43

      Interest expense     (11,136)     (15,020)     (25,566)     (31,703)

      Interest income and

       other                   567        2,157        1,001        3,139

      Income taxes            (360)        (502)        (897)        (962)

        Income (Loss) Before

         Minority Interests  2,663         (360)       1,742         (351)

    Minority interests        (431)         102         (220)         187



        Income (Loss) From

         Continuing

         Operations          2,232         (258)       1,522         (164)

    Income from discontinued

     operations             13,296          358       14,028        8,870

        Income Before Gain

         (Loss) On

         Dispositions Of

         Real Estate

         Interests          15,528          100       15,550        8,706

    Gain (loss) on

     dispositions of real

     estate interests, net

     of minority interest      (32)       7,737          330       14,486



            NET INCOME     $15,496       $7,837      $15,880      $23,192





    INCOME PER COMMON

     SHARE - BASIC:

      Income (Loss) From

       Continuing

       Operations            $0.01       $(0.00)       $0.01       $(0.00)

      Income from

       discontinued

       operations             0.08         0.00         0.08         0.05

      Gain (loss) on

       dispositions of real

       estate interests, net

       of minority interest  (0.00)        0.05         0.00         0.09

      Net Income             $0.09        $0.05        $0.09        $0.14





    INCOME PER COMMON

     SHARE - DILUTED:

      Income (Loss) From

       Continuing Operations $0.01       $(0.00)       $0.01       $(0.00)

      Income from discontinued

       operations             0.08         0.00         0.08         0.05

      Gain (loss) on

       dispositions of real

       estate interests, net

       of minority interest  (0.00)        0.05         0.00         0.09

      Net Income             $0.09        $0.05        $0.09        $0.14





    WEIGHTED AVERAGE COMMON

     SHARES OUTSTANDING:

      Basic                171,429      168,355      169,908      168,355

      Diluted              207,654      198,703      207,448      197,711







                  DCT Industrial Trust Inc. and Subsidiaries

           Summary Consolidated Statements of Funds From Operations

                 (in thousands, except per share information)



                            Three Months Ended         Six Months Ended

                                  June 30,                  June 30,

                             2008         2007         2008         2007

    Net income attributable

     to common shares      $15,496       $7,837      $15,880      $23,192

    Adjustments:

      Real estate related

       depreciation and

       amortization         29,266       28,389       58,409       57,172

      Equity in (income) of

       unconsolidated joint

       ventures, net          (439)          31         (726)         (43)

      Equity in FFO of

       unconsolidated

       joint ventures        1,517          415        2,984          811

      (Gain) on dispositions

       of real estate

       interests           (16,723)      (9,132)     (17,530)     (26,578)

      Gain (loss) on

       dispositions of

       non-depreciated

       real estate             (39)       9,014          207       12,725

      Minority interest in

       the operating

       partnership's share

       of the above

       adjustments          (2,367)      (4,397)      (7,951)      (6,602)

    Funds from operations

     attributable to common

     shares - basic         26,711       32,157       51,273       60,677

    FFO attributable to

     dilutive OP Units       5,634        5,774       11,305       10,571

    Funds from operations

     attributable to common

     shares - diluted      $32,345      $37,931      $62,578      $71,248



    Basic FFO per common

     share                   $0.16        $0.19        $0.30        $0.36

    Diluted FFO per common

     share                   $0.16        $0.19        $0.30        $0.36

    Weighted average common

     shares outstanding:

      Basic                171,429      168,355      169,908      168,355

      Dilutive OP Units     36,225       30,348       37,540       29,356

      Diluted              207,654      198,703      207,448      197,711









    Guidance:



                                                          Full-Year Range for

                                                                  2008

      Guidance:                                             (low)      (high)

      Earnings per diluted share                            $0.09      $0.15

      Gains on sale of depreciated assets                   (0.07)     (0.07)

      Real estate related depreciation and amortization      0.58       0.58

      FFO attributable to common shares per diluted share   $0.60      $0.66



    Guidance excludes future gains or losses from sale of depreciated assets.





    The following table shows the calculation of our Fixed Charge Coverage

for the three and six months ended June 30, 2008 and 2007 (in thousands).






                                    Three Months Ended   Six Months Ended

                                           June 30,           June 30,

                                        2008     2007      2008       2007

    Net income                        $15,496   $7,837   $15,880    $23,192

    Interest expense (1)               11,245   15,204     25,819    32,084

    Pro rata share of interest

     expense from unconsolidated JVs    1,510      957      2,841     1,783

    Real estate related

     depreciation and amortization (1) 29,266   28,389     58,409    57,172

    Pro rata share of real estate

     related depreciation and

     amortization from

     unconsolidated JVs                 1,163      446      2,378       771

    Income taxes                          365      533        914     1,004

    Stock-based compensation

     amortization expense                 852      598      1,595     1,092

    Minority interests (1)              3,227    1,371      3,269     3,857

    Non-FFO (gains) losses on

     dispositions of real estate

     interests, net                   (16,762)    (118)   (17,323)  (13,853)



        Adjusted EBITDA               $46,362  $55,217    $93,782  $107,102

    Calculation of Fixed Charges:

      Interest expense excluding

       financing obligations (1)      $11,245  $13,868    $25,767   $28,881

      Interest expense related to

       financing obligations                -    1,336         52     3,203

      Capitalized interest              1,865    1,669      3,919     3,222

      Amortization of loan costs

       and debt premium/discount           98       14        218        71

      Amortization of financing

       obligations                          -     (161)        (4)     (356)

      Pro rata share of interest

       expense from

       unconsolidated JVs               1,510      957      2,841     1,783

        Total Fixed Charges           $14,718  $17,683    $32,793   $36,804

    Fixed Charge Coverage                 3.2      3.1        2.9       2.9

    Fixed Charge Coverage,

     Excluding Financing

     Obligations                          3.2      3.3        2.9       3.2

    Fixed Charge Coverage,

     Excluding Hedge Settlement

     Income (2)                           3.0        -          -         -



    (1)  Includes amounts related to discontinued operations.

    (2)  Excludes $1.4 million income related to settlement of

         forward-starting interest rate swaps.





    The following table is a reconciliation of our property NOI to our

reported "Income (Loss) From Continuing Operations" for the three and six

months ended June 30, 2008 and 2007 (in thousands):






                            Three Months Ended         Six Months Ended

                                  June 30,                 June 30,

                             2008         2007         2008         2007



    Same Store property

     NOI                   $42,575      $42,462      $83,716      $84,114

    Non-same store NOI and

     revenues related to

     early lease

     terminations and

     buyout, net             3,940        3,189        9,401        8,837

    Total NOI               46,515       45,651       93,117       92,951

    Institutional capital

     management and

     other fees                614          572        1,474        1,318

    Real estate related

     depreciation and

     amortization          (28,893)     (27,510)     (57,148)     (55,404)

    General and

     administrative

     expenses               (5,083)      (5,677)     (10,965)      (9,733)

    Equity in income

     (losses) of

     unconsolidated

     joint ventures, net       439          (31)         726           43

    Interest expense       (11,136)     (15,020)     (25,566)     (31,703)

    Interest income and

     other                     567        2,157        1,001        3,139

    Income taxes              (360)        (502)        (897)        (962)

    Minority interests        (431)         102         (220)         187

      Income (Loss) from

       Continuing

       Operations           $2,232        $(258)      $1,522        $(164)







    The following table is a reconciliation of our same store NOI to our cash

basis same store NOI for the three and six months ended June 30, 2008 and 2007

(in thousands):



                                Three Months Ended        Six Months Ended

                                     June 30,                 June 30,

                                2008         2007         2008         2007

    Same Store property NOI   $42,575      $42,462      $83,716      $84,114

    Less straight-line rents     (640)        (910)      (1,344)      (2,091)

    Less amortization of

     above/below market rents     338          192          446          833

      Cash basis same store

       NOI                    $42,273      $41,744      $82,818      $82,856



    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 and cash

basis same store NOI 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 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 and cash basis same store NOI

may not be comparable to that of other real estate companies, as they may

use different methodologies for calculating these measures. Therefore, DCT

Industrial believes net income, as defined by GAAP, to be the most

appropriate measure to evaluate DCT Industrial's overall financial

performance.



    DCT Industrial believes that net income, 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, 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 consolidated and

unconsolidated joint ventures. We 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. 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 as a measure of DCT Industrial's performance.



    DCT Industrial calculates our fixed charge coverage calculation based

on adjusted EBITDA, which is defined as earnings from operations before

interest, taxes, depreciation, amortization, stock-based compensation

expense and minority interest, 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. We also present our fixed charge coverage for the three

months ended June 30, 2008 excluding the settlement income related to

forward-starting interest rate swaps because it allows fixed income

investors to view income from our operations on an unleveraged basis before

the effects of this item.



    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; 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 recent softening of

the U.S. economy; 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 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.