Zacks_Analysts' Blog : Duke Realty Repositions Portfolio - Analyst Blog

Duke Realty Corp. (DRE) recently announced that it has sold a suburban office portfolio located in seven of its markets across the Midwest and Southern part of the United States to an affiliate of Blackstone Real Estate Partners VII for $1.06 billion.

The recent divestiture is in sync with Duke Realty’s strategy of repositioning its portfolio by reducing its investment in suburban office properties. The strategic move on the company’s part is also expected to generate sufficient funds for the acquisition of medical office and industrial assets and to further de-lever the company's balance sheet.

The long-term strategy of Duke Realty is to achieve an investment allocation of 60% industrial, 25% office and 15% medical office, composed of the highest quality assets within each product sector. The company also focuses on the enhancement of the quality  of its portfolio within the various product segments.

Headquartered in Indiana, Duke Realty Corporation is one of the largest commercial real estate companies in the U.S., operating as a fully integrated owner, manager, and developer of industrial, office, and healthcare properties. For over 35 years, the company has leveraged its local presence and its integrated platform to drive returns, and has established itself as a premier publicly traded real estate developer in the country.

The company owns and operates more than 143 million rentable square feet of industrial and office, including medical office, space in 18 major U.S. cities.

Duke Realty currently retains a Zacks #3 Rank, which translates into a short-termHold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Highwoods Properties Inc. (HIW) also holds a Zacks #3 Rank.