Home

Investment Strategy

DCT Industrial Trust's objective is to build a critical mass of generic distribution space through acquisitions and development in its 26 target markets, in order to provide well located, highly functional facilities to national, regional, and strong local companies who, over time, will view DCT Industrial as a key provider of distribution space throughout the United States.

DCT Industrial’s investment strategy has four principal components:

I. Focus on Generic, Bulk Distribution and Light Industrial Facilities

Bulk distribution and light industrial buildings represent the primary investment targets for DCT Industrial, and as of year-end 2005 comprise 84.5% of DCT Industrial's assets. These facility types have been selected for their excellent cash flow characteristics, including stability, low turnover costs, re-leasability due to generic design, and liquidity given strong institutional demand for these types of buildings.
II. Selection of Target Markets

We have identified 26 target markets in which we have acquired or are presently seeking to acquire properties. These key distribution markets can be broken down into three types:
1. Major ports of entry: air, truck and sea
2. Strategically located regional distribution markets with excellent interstate highway connections
3. Markets with large population bases within a thousand miles (or approximately a two-day truck delivery timeframe).

III. Diversity of Tenant Base

DCT Industrial targets a diverse tenant base, representing a wide range of industries. Third-party logistics providers, with 24.2%, is the largest industry sector that leases space in DCT Industrial's properties.
IV. Strategic Deployment of Equity for Development

Capital deployment to date has been primarily directed toward the acquisition of existing leased distribution properties. DCT Industrial will also selectively enter into development joint ventures with leading local or national developers to construct new facilities which will either be pre-leased (build to suits) or located in markets with strong demand, mitigating lease-up risk.

Through December 31, 2005, DCT Industrial has deployed or committed to deploy approximately $2.3 billion of capital in distribution facilities.