<PAGE>
 
                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                   Form 10-Q
                                        
[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                 For the quarterly period ended March 31, 1999

                                       OR

[ ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES AND EXCHANGE ACT OF 1934

            For the Transition Period from __________ to __________

                         Commission File No. 011-13254
                                             ---------

                               WEEKS CORPORATION
             (Exact name of Registrant as specified in its Charter)


        Georgia                                    58-1525322
------------------------                           ----------
(State of Incorporation)                (I.R.S. Employer Identification No.)


                    4497 Park Drive, Norcross, Georgia 30093
          (Address of principal executive offices, including zip code)

                                 (770)923-4076
              (Registrant's telephone number, including area code)

                                      N/A
                                      ---
   (Former name, former address and former fiscal year, if changed since last
                                    report)

          Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past ninety (90) days.    (X) YES  ( ) NO

          Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date (19,821,212 shares of
common stock outstanding as of May 10, 1999)
<PAGE>
 
INDEX                                                                   PAGE
================================================================================
PART I.  FINANCIAL INFORMATION
--------------------------------------------------------------------------------
 
    Item 1. Financial Statements
            Consolidated Condensed Balance Sheets
            at March 31, 1999 and December 31, 1998.............            3
 
            Consolidated Condensed Statements of Operations
            for the three months ended March 31, 1999 and 1998..            4
 
            Consolidated Condensed Statements of Cash Flows
            for the three months ended March 31, 1999 and 1998..            5
 
            Notes to Consolidated Condensed Financial
            Statements..........................................            6
 
    Item 2. Management's Discussion and Analysis of
            Financial Condition and Results of Operations.......           16
 
    Item 3. Quantitative and Qualitative Disclosures About
            Market Risk.........................................           32

PART II.  OTHER INFORMATION
--------------------------------------------------------------------------------

    Item 2. Changes in Securities...............................           33
 
    Item 6. Exhibits and Reports on Form 8-K....................           33


SIGNATURES......................................................           34
--------------------------------------------------------------------------------
                                       2
<PAGE>
 
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS

                               Weeks Corporation
                     Consolidated Condensed Balance Sheets

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------
                                                                                                March 31,   December 31,
(Unaudited; in thousands, except share data)                                                      1999          1998
=========================================================================================================================
<S>                                                                                            <C>          <C>
ASSETS
Real estate assets
  Land                                                                                         $  176,915     $  169,443
  Buildings and improvements                                                                    1,069,829      1,031,617
  Accumulated depreciation                                                                       (101,640)       (96,383)
-------------------------------------------------------------------------------------------------------------------------
     Operating real estate assets                                                               1,145,104      1,104,677
-------------------------------------------------------------------------------------------------------------------------
  Developments in progress                                                                        166,239        160,783
  Land held for future development                                                                 37,118         42,438
-------------------------------------------------------------------------------------------------------------------------
     Net real estate assets                                                                     1,348,461      1,307,898
-------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents                                                                           2,159          1,503
Receivables                                                                                        15,336         15,316
Deferred costs, net                                                                                28,405         29,163
Investments in and notes receivable
  from unconsolidated service companies                                                            42,926         43,639
Investments in unconsolidated real estate entities                                                  7,676         35,204
Other assets                                                                                       14,781         14,869
-------------------------------------------------------------------------------------------------------------------------
     Total assets                                                                              $1,459,744     $1,447,592
=========================================================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Debt
  Mortgage notes payable                                                                       $  243,764     $  251,399
  Unsecured bank borrowings                                                                       225,140        203,025
  Unsecured notes                                                                                 200,000        200,000
-------------------------------------------------------------------------------------------------------------------------
     Total debt                                                                                   668,904        654,424
-------------------------------------------------------------------------------------------------------------------------
Accounts payable and accrued expenses                                                              28,785         32,977
Other liabilities                                                                                  10,160          9,626
-------------------------------------------------------------------------------------------------------------------------
     Total liabilities                                                                            707,849        697,027
-------------------------------------------------------------------------------------------------------------------------
Minority interests in Operating Partnership
  Preferred partnership interests                                                                 100,000        100,000
  Common partnership interests                                                                    135,762        135,653
-------------------------------------------------------------------------------------------------------------------------
     Total minority interests                                                                     235,762        235,653
-------------------------------------------------------------------------------------------------------------------------
Commitments and contingencies
Shareholders' equity
  Preferred Stock, at $25.00 liquidation preference; 20,000,000 shares
     authorized; 6,000,000, 8% series A cumulative redeemable
     shares issued and outstanding at March 31, 1999 and
     December 31, 1998, respectively                                                              150,000        150,000
  Common Stock, $0.01 par value; 100,000,000 shares authorized;
     19,754,070 and 19,674,412 shares issued and outstanding
     at March 31, 1999 and December 31, 1998, respectively                                            198            197
  Common stock warrants                                                                             1,400          1,400
  Additional paid-in capital                                                                      432,315        430,191
  Deferred compensation                                                                              (861)          (668)
  Accumulated deficit                                                                             (66,919)       (66,208)
-------------------------------------------------------------------------------------------------------------------------
     Total shareholders' equity                                                                   516,133        514,912
-------------------------------------------------------------------------------------------------------------------------
     Total liabilities and shareholders' equity                                                $1,459,744     $1,447,592
=========================================================================================================================
The accompanying notes are an integral part of these consolidated condensed balance sheets.
</TABLE>

                                       3
<PAGE>
 
                               Weeks Corporation
                Consolidated Condensed Statements Of Operations

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                                                           Three Months           Three Months
                                                                               Ended                  Ended
(Unaudited; in thousands, except per share data)                           March 31, 1999         March 31, 1998
===================================================================================================================
<S>                                                                           <C>                   <C>
Revenues                                                                                        
  Rental income                                                                $38,520                $28,345
  Tenant reimbursements                                                          5,561                  3,960
  Other                                                                            340                    388
-------------------------------------------------------------------------------------------------------------------
                                                                                44,421                 32,693
-------------------------------------------------------------------------------------------------------------------
Expenses                                                                                        
  Property operating, maintenance                                                               
    and management                                                               6,341                  4,721
  Real estate taxes                                                              3,912                  2,746
  Depreciation and amortization                                                 11,344                  8,361
  Interest, including amortization of                                                           
    deferred financing costs                                                     9,103                  6,102
  General and administrative                                                     1,756                  1,280
-------------------------------------------------------------------------------------------------------------------
                                                                                32,456                 23,210
-------------------------------------------------------------------------------------------------------------------
Income before Equity in Earnings of                                                             
  Unconsolidated Entities, Interest Income                                                        
  and Gain on Sale of Real Estate Assets                                        11,965                  9,483
  Equity in earnings of unconsolidated                                                          
    service companies                                                              503                    488
  Equity in earnings of unconsolidated                                                          
    real estate entities                                                            89                     68
  Interest income                                                                  325                    279
  Gain on sale of real estate assets                                             4,899                     --
-------------------------------------------------------------------------------------------------------------------
Income before Minority Interests                                                17,781                 10,318
-------------------------------------------------------------------------------------------------------------------
Minority Interests                                                                              
  Preferred partnership interests                                               (2,102)                    --
  Common partnership interests                                                  (3,432)                (1,940)
-------------------------------------------------------------------------------------------------------------------
                                                                                (5,534)                (1,940)
-------------------------------------------------------------------------------------------------------------------
Net Income                                                                      12,247                  8,378
  Dividends to preferred shareholders                                           (3,000)                (3,000)
-------------------------------------------------------------------------------------------------------------------
Net Income Available to Common Shareholders                                    $ 9,247                $ 5,378
-------------------------------------------------------------------------------------------------------------------
Net Income per Common Share                                                                     
  Basic                                                                        $  0.47                $  0.29
  Diluted                                                                         0.47                   0.29
-------------------------------------------------------------------------------------------------------------------
Weighted Average Common Shares                                                                  
  Basic                                                                         19,728                 18,276
  Diluted                                                                       27,177                 25,063
-------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of these consolidated condensed financial statements.
</TABLE>

                                       4

<PAGE>
 
                               Weeks Corporation
                Consolidated Condensed Statements Of Cash Flows

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------
                                                                         Three Months          Three Months
                                                                             Ended                 Ended
(Unaudited; in thousands)                                               March 31, 1999        March 31, 1998
==============================================================================================================
<S>                                                                   <C>                   <C>
Operating Activities                                                                     
Net income                                                                  $ 12,247             $   8,378
Adjustments to reconcile net income to net cash                                          
  provided by operating activities:                                                      
  Minority interests                                                           5,534                 1,940
  Depreciation and amortization                                               11,344                 8,361
  Amortization of deferred financing costs                                       516                   281
  Amortization of deferred compensation                                          107                    72
  Straight-line rent revenue                                                  (1,089)                 (251)
  Gain on sale of real estate assets                                          (4,899)                   --
  Undistributed earnings of unconsolidated entities                               --                  (556)
Net change in:                                                                           
  Deferred costs                                                              (2,011)               (1,350)
  Receivables and other assets                                                  (144)               (1,361)
  Accounts payable and accrued expenses                                       (4,081)                 (194)
  Other liabilities                                                              534                   618
--------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities                                     18,058                15,938
--------------------------------------------------------------------------------------------------------------
Investing Activities                                                                     
Property acquisition, development and construction                           (63,560)             (108,297)
Investments in and advances to unconsolidated entities                        (4,864)              (18,494)
Real estate loans                                                                 --                (4,857)
Proceeds from sale of real estate assets                                      51,832                    --
Collections on real estate loans, notes receivable and other                   1,231                   224
Distributions in excess of earnings of unconsolidated entities                   127                    --
--------------------------------------------------------------------------------------------------------------
Net cash used in investing activities                                        (15,234)             (131,424)
--------------------------------------------------------------------------------------------------------------
Financing Activities                                                                     
Common share offering proceeds                                                    --                48,600
Underwriting commissions and offering costs                                       --                (1,400)
Proceeds from issuance of common stock warrants,                                         
  stock option exercises and dividend reinvestment plan                        1,825                 2,871
Unsecured note borrowings                                                         --               100,000
Line of credit proceeds (repayments), net                                     22,115               (14,975)
Payments of mortgage notes payable                                            (7,635)               (4,698)
Deferred financing costs                                                          --                (6,132)
Dividends to common and preferred shareholders                               (12,935)              (11,233)
Distributions to common and preferred minority interests                      (5,538)               (2,487)
--------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities                           (2,168)              110,546
--------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash and cash equivalents                                 656                (4,940)
Cash and cash equivalents, beginning of period                                 1,503                 5,421
--------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period                                    $  2,159             $     481
==============================================================================================================
</TABLE>

Supplemental disclosure of non-cash investing and financing activities:

The Company's 1999 acquisition and development activity was net of the issuance
of Common Units valued at $300,000 and net of the Company's investment and
advances to unconsolidated entities of $32,733,000 (see Note 3).

The Company's 1998 property acquisition and development activity was net of the
settlement of real estate loans of $7,898,000, the assumption of other
liabilities in excess of other assets of $4,224,000, the assumption of
indebtedness of $80,897,000 and the issuance of Common Units valued at
$36,123,000.

The accompanying notes are an integral part of these consolidated condensed
financial statements.

                                       5
<PAGE>
 
                               WEEKS CORPORATION
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

1.  THE COMPANY

Weeks Corporation and its subsidiaries own, operate, develop, construct, acquire
and manage industrial and suburban office buildings in the southeast United
States and Texas.  As used herein, the term "Company" includes Weeks Corporation
and its subsidiaries, including Weeks Realty, L.P. (the "Operating
Partnership"), unless the context indicates otherwise.  The Company, through its
subsidiaries, is the general partner of and owns a majority interest in the
Operating Partnership which, including the operations of its subsidiaries,
conducts substantially all of the on-going operations of the Company.  The
Company has elected to qualify and operate as a self-administered and self-
managed real estate investment trust ("REIT") under the Internal Revenue Code of
1986, as amended (the "Code").  As a REIT, the Company will not generally be
subject to corporate federal income taxes as long as it satisfies certain
technical requirements of the Code relating to the composition of its income and
assets, and including the requirement to distribute 95% of its taxable income to
its shareholders.

As of March 31, 1999, the Company had outstanding 19,754,070 shares of common
stock and owned the same number of units of common limited partnership interest
in the Operating Partnership ("Common Units"), and the Company's ownership
interest in the Operating Partnership was 73.0%.  Common Units held by persons
other than the Company totaled 7,324,677 as of March 31, 1999, and represented a
27.0% common minority interest in the Operating Partnership.  Common Units are
convertible by their holders into shares of common stock on a one-for-one basis,
or into cash, at the Company's option.  The Company's weighted average common
ownership interest in the Operating Partnership was 72.9% and 73.5% for the
three months ended March 31, 1999 and 1998, respectively.

The Company conducts its third-party service businesses through two subsidiary
companies (the "Service Companies"):  Weeks Realty Services, Inc. and Weeks
Construction Services, Inc.  Together the Service Companies and their
subsidiaries conduct third-party development, construction, landscape, property
management and commercial brokerage services.  The Company holds 100% of the
nonvoting and 1% of the voting common stock of the Service Companies.  The
remaining voting common stock is held by three executive officers of the
Company.  The ownership of the common stock of the Service Companies entitles
the Company to substantially all (99%) of the economic benefits from the results
of the Service Companies' operations.

As of March 31, 1999, the Company's in-service property portfolio, including two
properties totaling 336,000 square feet held in unconsolidated entities,
consisted of 270 industrial properties, 34 suburban office properties and 5
retail properties comprising 25,926,000 square feet.  The Company's primary
markets and the concentration of the Company's in-service portfolio (based on
square footage) are Atlanta, Georgia (53.3%), Nashville, Tennessee (11.2%),
Raleigh-Durham-Chapel Hill, North Carolina (9.8%), Miami, Florida (9.4%),
Dallas/Ft. Worth, Texas (7.1%), Orlando, Florida (3.8%), Jacksonville, Florida
(2.5%), Spartanburg, South Carolina (1.5%), Tampa, Florida (0.7%) and Ft.
Lauderdale, Florida (0.7%).  In addition, 42 industrial and suburban office
properties were under development or in lease-up and one industrial property was
under agreement to acquire as of March 31, 1999, comprising an additional
4,450,000 square feet.

                                       6
<PAGE>
 
Announced Merger Transaction
On March 1, 1999, the Company announced that it had entered into an Agreement
and Plan of Merger (the "REIT Merger Agreement") with Duke Realty Investments,
Inc., an Indiana based REIT specializing in industrial and office building
development and ownership ("Duke"), and that the Operating Partnership had
entered into an Agreement and Plan of Merger (the "OP Merger Agreement" and,
together with the REIT Merger Agreement, the "Merger Agreements") with Duke
Realty Limited Partnership, an Indiana limited partnership of which Duke is the
managing general partner ("Duke OP").  The Merger Agreements provide for a
merger of the Company with and into Duke (the "REIT Merger") and a merger of the
Operating Partnership with and into Duke OP (the "OP Merger" and, together with
the REIT Merger, the "Mergers").  At the effective time of the Mergers, Duke
will change its name to Duke-Weeks Realty Corporation.

Pursuant to the Merger Agreements:  (i) each outstanding share of common stock,
par value $0.01 per share, of the Company ("Weeks Common Stock") will be
converted into the right to receive 1.38 shares of common stock, par value $0.01
per share, of Duke ("Duke Common Stock"), (ii) each issued and outstanding share
of 8.0% Series A Preferred Stock, par value $0.01 per share, of the Company will
be converted into the right to receive one preference share representing 1/1000
of a share of 8.0% Series F Cumulative Redeemable Preferred Stock, par value
$0.01 per share, of Duke; (iii) each issued and outstanding share of 8.625%
Series D Cumulative Redeemable Preferred Stock, par value $0.01 per share, of
the Company will be converted into the right to receive one preference share
representing 1/1000 of a share of 8.625% Series H Cumulative Redeemable
Preferred Stock, par value $0.01 per share, of Duke; (iv) each issued and
outstanding Common Unit in the Operating Partnership will be converted into 1.38
common units of limited partnership interest in Duke OP; (v) each issued and
outstanding 8.0% Series A Preferred Unit in the Operating Partnership will be
converted into one 8.0% Series F Cumulative Redeemable Preferred Unit in Duke
OP; (vi) each issued and outstanding 8.0% Series C Preferred Unit in the
Operating Partnership will be converted into one 8.0% Series G Cumulative
Redeemable Preferred Unit in Duke OP; and (vii) each issued and outstanding
8.625% Series D Preferred Unit in the Operating Partnership will be converted
into one 8.625% Series H Cumulative Redeemable Preferred Unit in Duke OP.

Holders representing 2% of the outstanding Weeks Common Stock have entered into
voting agreements, agreeing to vote their shares in favor of the transactions
contemplated by the Merger Agreements.  Holders representing 5% of the
outstanding Duke Common Stock have entered into voting agreements, agreeing to
vote their shares in favor of the transactions contemplated by the Merger
Agreements.  The requisite approvals of the partners of Duke OP and the
Operating Partnership to the transactions have been obtained.

The consummation of the transactions contemplated by the Merger Agreements is
expected to occur on or about June 30, 1999 and is subject to approval by the
stockholders of Duke and the shareholders of the Company and satisfaction of
certain other customary closing conditions.  Additionally, the consent of
certain Company debt holders, lenders and others will be required to consummate
the Mergers.  There can be no assurance that the transactions contemplated by
the Merger Agreements will be consummated.  The Company has agreed with Duke
that if the REIT Merger Agreement is terminated under certain circumstances, the
Company will pay Duke certain fees and expenses.  Duke has agreed with the
Company that if the REIT Merger Agreement is terminated under certain other
circumstances, Duke will pay the Company certain fees and expenses.

                                       7
<PAGE>
 
2.  BASIS OF PRESENTATION

The accompanying consolidated condensed financial statements include the
consolidated condensed financial position of the Company and its subsidiaries at
March 31, 1999, and December 31, 1998, and their results of operations and cash
flows for the three months ended March 31, 1999 and 1998. The Service Companies
and their subsidiaries are reflected in the accompanying consolidated condensed
financial statements on the equity method of accounting.  All significant
intercompany balances and transactions have been eliminated in the consolidated
condensed financial statements.

The accompanying interim unaudited financial statements have been prepared by
the Company's management in accordance with generally accepted accounting
principles for interim financial information and in conformity with the rules
and regulations of the Securities and Exchange Commission.  In the opinion of
management, the interim financial statements presented herein reflect all
adjustments of a normal and recurring nature which are necessary to fairly state
the interim financial statements.  The results of operations for the interim
periods are not necessarily indicative of the results that may be expected for
the year ending December 31, 1999.  These financial statements should be read in
conjunction with the Company's audited financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the year ended
December 31, 1998.

Recent Accounting Pronouncements
In June 1998, SFAS 133, "Accounting for Derivative Instruments and for Hedging
Activities," was issued prescribing new accounting standards for the accounting
and disclosures of derivative instruments and hedging transactions.  SFAS 133
will require the Company to record all derivative instruments on the balance
sheet at fair value.  Changes in derivative fair values will either be recorded
in earnings along with the changes in fair value of related hedged assets or
liabilities or as an adjustment to shareholders' equity depending on the nature
and type of derivative instrument.  SFAS 133 will be effective for the Company
beginning January 1, 2000.  The Company is evaluating the provisions of SFAS 133
and plans to adopt SFAS 133 in its financial statements beginning in 2000.  The
impact of SFAS 133 on the Company's financial statements will depend on the
extent, type and effectiveness of the Company's hedging activities.  However,
the Company does not believe the effect of adopting SFAS 133 will be material to
its financial position or results of operations.

3.  ACQUISITIONS/DISPOSITIONS

In January 1999, the Company acquired four industrial buildings located in
Dallas, Texas from NWI Warehouse Group, L.P. ("NWI"), a related entity, for
aggregate acquisition consideration of approximately $35,054,000, which resulted
in a gain to NWI, net of intercompany eliminations, of approximately $245,000.
In periods prior to the acquisition of the buildings from NWI, the Company had
invested and advanced approximately $32,733,000 under the terms of loan and
option agreements with NWI.  The Company accounted for these arrangements with
NWI as an investment in real estate under the equity method of accounting.  In
the first quarter of 1999, the Company recognized earnings of $19,000 under the
equity method with respect to this transaction.

Also in January 1999, the Company sold 21 buildings totaling approximately
1,181,000 square feet located in Atlanta, Georgia for net proceeds of
approximately $51,832,000, resulting in a gain of approximately $4,899,000.  For
income tax purposes, the Company has and intends to use the proceeds from the
sale to complete a tax-deferred, like-kind exchange.  As part of this agreement,
the Company 

                                       8
<PAGE>
 
has also agreed to sell, upon the completion of construction, an additional
building totaling approximately 182,000 square feet for approximately
$7,300,000.

4.  BORROWINGS

Total borrowings at March 31, 1999 and December 31, 1998 consisted of the
following (in thousands):
<TABLE>
<CAPTION>
 
--------------------------------------------------------------------------------
                                                        March 31,  December 31,
                                                          1999         1998
================================================================================
<S>                                                     <C>        <C>
     Unsecured Notes
       Due 2005, interest at 6.875%                      $100,000      $100,000
       Due 2007, interest at 7.375%                       100,000       100,000
--------------------------------------------------------------------------------
                                                          200,000       200,000
--------------------------------------------------------------------------------
     Unsecured Bank Borrowings
       Credit Facility                                    140,140       118,025
       Term Loan                                           85,000        85,000
--------------------------------------------------------------------------------
                                                          225,140       203,025
--------------------------------------------------------------------------------
     Mortgage Notes Payable
       Fixed rate notes, interest at 6.00% to 9.80%,
          due in 1999 to 2012                             243,164       250,788
       Variable rate industrial revenue bonds,
          interest at 6.06% at March 31, 1999,
          due in 2010                                         600           611
--------------------------------------------------------------------------------
                                                          243,764       251,399
--------------------------------------------------------------------------------
     Total Borrowings                                    $668,904      $654,424
================================================================================
</TABLE>

Unsecured Notes
At March 31, 1999, the Operating Partnership had outstanding $100,000,000 of
6.875% unsecured notes due March 15, 2005 and $100,000,000 of 7.375% unsecured
notes due August 1, 2007.  These unsecured notes are subject to certain
covenants, including those governing the Operating Partnership's interest and
fixed charge coverage and total leverage.

Unsecured Bank Borrowings
Credit Facility
At March 31, 1999, the Operating Partnership financed its operations through a
$225,000,000 syndicated revolving line of credit (the "Line of Credit") and a
$20,000,000 swing revolving credit facility (the "Swing Facility") with a bank
lending group.  Together, the combined Line of Credit and Swing Facility are
referred to herein as the "Credit Facility."  The Credit Facility is unsecured
and can be used for development and construction, acquisitions and general
corporate purposes.  The entire Credit Facility is guaranteed by the Company.
Additionally, the Company and the Operating Partnership are required to meet
certain financial and non-financial covenants including those governing the
Company's and the Operating Partnership's maximum unsecured borrowings, interest
and fixed charge coverage, total leverage, limitations on secured borrowings and
a restriction on the amount of dividends and distributions to not more than 95%
of "funds from operations," a REIT industry measure of operating performance,
unless the additional amounts are necessary to maintain the Company's REIT
status under the Code.  The Line of Credit matures on December 31, 2000, and may
be extended annually through December 31, 2002, subject to annual extension fees
of 0.10% and the prior consent of the banks in the 

                                       9
<PAGE>
 
bank lending group. The Swing Facility matures on June 30, 1999, and may be
extended annually, subject to the prior consent of the lender.

Interest under the Credit Facility accrues at bank prime minus 0.25% or at LIBOR
plus 0.80% at the election of the Operating Partnership.  In addition, the
Operating Partnership pays annual facility fees equal to 0.15% of the total Line
of Credit.  The weighted average interest rate on Credit Facility borrowings,
excluding the effect of the interest rate swap agreements described below, was
5.9% at March 31, 1999.  Prior to July 1998, interest under the Credit Facility
accrued at bank prime minus 0.25% or at LIBOR plus 1.05%, at the election of the
Operating Partnership, and fees on the unused portion of the Credit Facility
were 0.15%.

At March 31, 1999, the Operating Partnership had in place two interest rate swap
agreements with a commercial bank to effectively change the interest costs on
$40,000,000 of Credit Facility borrowings from the variable rates discussed
above to fixed rates.  The agreements, with notional principal amounts of
$10,000,000 and $30,000,000, mature in July 1999 and July 2001 with effective
fixed interest rates of 7.3% and 7.6%, respectively.

Term Loan
At March 31, 1999, the Operating Partnership had outstanding an $85,000,000
unsecured syndicated bank term loan (the "Term Loan") with a group of five
banks.  Interest accrues on the Term Loan at LIBOR plus 1.25% and the Term Loan
matures on December 31, 2001.  Simultaneously with the execution of the Term
Loan, the Operating Partnership entered into three interest rate swap agreements
with three commercial banks to effectively change the interest costs on the
entire $85,000,000 Term Loan from its variable rate to fixed rates.  The
interest rate swap agreements, with notional principal amounts of $35,000,000,
$25,000,000 and $25,000,00, mature on December 31, 2001, and effectively convert
interest costs on the Term Loan to a fixed rate of approximately 6.3% through
maturity.

Mortgage Notes Payable
At March 31, 1999, fixed rate mortgage notes payable included 29 notes with a
weighted average interest of 8.3%.  The weighted average term to maturity of
fixed rate mortgage notes payable was 6.4 years at March 31, 1999.  Total
mortgage indebtedness decreased by $7,635,000 in 1999 due to principal
repayments and retirements.  Certain Company officers and Common Unitholders
guarantee a portion of the fixed rate mortgage notes.

Debt Maturities
Scheduled maturities of total borrowings at March 31, 1999, are summarized as
follows (in thousands):

    --------------------------------------------- 
          Year                    Amount
    =============================================
          1999                   $ 62,083(a)
          2000                    158,853(a)
          2001                     91,352
          2002                      9,874
          2003                      7,854
          2004 and thereafter     338,888
    --------------------------------------------- 
                                 $668,904
    =============================================

   (a)  Includes $16,990 maturing in 1999 under the Swing Facility and $123,150
   maturing in 2000 under the Line of Credit, assuming that no extensions are
   exercised.

                                       10
<PAGE>
 
Interest paid, net of amounts capitalized, totaled $11,818,000 and $5,037,000
for the three months ended March 31, 1999 and 1998, respectively.  Interest
costs capitalized totaled $3,398,000 and $2,162,000 for the three months ended
March 31, 1999 and 1998, respectively.

5.  INVESTMENTS IN AND NOTES RECEIVABLE
    FROM UNCONSOLIDATED SERVICE COMPANIES

The Company conducts its third-party development, construction, landscape,
property management and commercial brokerage businesses through the Service
Companies and their subsidiaries.  Additionally, the Service Companies and their
subsidiaries also own land held for sale or future development, either directly
or through ownership interests in real estate partnerships and joint ventures.
The Company intends, based on market conditions, to acquire land from the
Service Companies and their subsidiaries for the development of future
properties.  The Service Companies and their subsidiaries are accounted for on
the equity method of accounting.  Under the equity method, the Company
recognizes, in its consolidated statements of operations, its economic share
(99%) of the earnings or losses of the Service Companies and their subsidiaries.


The following information summarizes the financial position, results of
operations and cash flows of the Service Companies and their subsidiaries on a
combined basis (in thousands):
<TABLE>
<CAPTION>
   ------------------------------------------------------------------------ 
                                                March 31,   December 31,
              Financial Position                   1999         1998
   ========================================================================
<S>                                             <C>         <C>
   Assets
   Real estate assets                             $20,230        $22,768
   Investments in unconsolidated entities          12,304         12,096
   Receivables and other assets                    33,187         26,634
   ------------------------------------------------------------------------ 
                                                  $65,721        $61,498
   ========================================================================
   Liabilities and Equity
   Borrowings from the Operating Partnership      $44,214        $44,575
   Other borrowings                                 2,309          2,309
   Other liabilities                               20,466         15,472
   Total equity (deficit)                          (1,268)          (858)
   ------------------------------------------------------------------------ 
                                                  $65,721        $61,498
   ========================================================================
</TABLE>

The operations of the Service Companies and their subsidiaries are financed
through borrowings from the Operating Partnership.  These line of credit
borrowings accrue interest at bank prime plus 1%, payable monthly, and are due
on demand.  As part of these financing arrangements, the Service Companies and
their subsidiaries have agreed not to incur any additional unsecured borrowings
other than through borrowings from the Operating Partnership.  Borrowings from
the Operating Partnership also include $10,876,000 of 12% notes due in 2004.

                                       11
<PAGE>
 
At March 31, 1999, the Company's investment in and notes receivable from the
Service Companies and their subsidiaries totaling $42,926,000 includes notes
receivable from the Service Companies and their subsidiaries of $44,214,000 and
the Company's investment in the Subsidiaries of ($1,288,000).
<TABLE>
<CAPTION>
 
   ------------------------------------------------------------------------------ 
                                                   Three Months     Three Months
                                                       Ended            Ended
   Results of Operations                           March 31, 1999   March 31, 1998
   ===============================================================================
<S>                                               <C>              <C>
   Revenue
   Construction and development fees                      $1,099          $   652
   Landscape                                               2,563            1,035
   Commissions                                               190              232
   Property management fees and other                        300               79
   ------------------------------------------------------------------------------ 
                                                           4,152            1,998
   ------------------------------------------------------------------------------ 
   Costs and expenses
   Direct costs                                            2,476              804
   Interest expense - Operating Partnership                  936              391
   Interest expense - third parties                           51              167
   General and administrative                                916              817
   Other                                                     390               88
   ------------------------------------------------------------------------------ 
                                                           4,769            2,267
   ------------------------------------------------------------------------------ 
   Loss before gains on sale of
      real estate and equity in earnings
      of unconsolidated entities                            (617)            (269)
   Gain on sale of real estate - third parties                --              377
   Gain on sale of real estate - Operating
      Partnership                                             --              142
   Equity in earnings of
      unconsolidated entities                                208              244
   ------------------------------------------------------------------------------ 
   Net income (loss)                                      $ (409)         $   494
   ------------------------------------------------------------------------------ 
   Net income (loss) attributable
      to Operating Partnership                            $ (405)         $   489
   Interest expense - Operating Partnership                  936              391
   Elimination of intercompany
      profits - Operating Partnership                        (28)            (392)
   ------------------------------------------------------------------------------ 
   Equity in earnings of Service Companies                $  503          $   488
   ===============================================================================
   Distributions and interest paid
      to Operating Partnership                            $  610          $    --
   ===============================================================================
 
   ------------------------------------------------------------------------------ 
                                                   Three Months     Three Months
                                                      Ended            Ended
   Cash Flows                                     March 31, 1999   March 31, 1998
   ===============================================================================
   Operating activities                                   $3,057          $ 2,105
   Investing activities                                    1,549           (8,749)
   Financing activities                                     (971)           1,810
   ------------------------------------------------------------------------------ 
</TABLE>

                                       12
<PAGE>
 
6.  SHAREHOLDERS' EQUITY

In January 1999, the Company declared and paid common stock dividends of
$9,935,000 or $0.505 per share relating to fourth quarter 1998 operating results
and also declared and paid dividends on its Series A Preferred Stock of
$3,000,000 or $0.50 per share.  Additionally, in January 1999, the Operating
Partnership made distributions to the minority Common Unitholders of $3,646,000
or $0.505 per Common Unit relating to fourth quarter 1998 operating results and
made distributions to the holders of the series C preferred units of $662,000 or
$0.47 per unit and the series D preferred units of $1,230,000 or $0.47 per unit.

In April 1999, the Company declared and paid quarterly common stock dividends
and made distributions to Common Unitholders relating to the first quarter of
1999 of $9,976,000 or $0.505 per common share and $3,698,000 or $0.505 per
Common Unit, respectively.  Additionally, in April 1999, the Company declared
and paid a quarterly series A preferred stock dividends of $3,000,000 or $0.50
per share and made distributions to the holders of the series C preferred units
of $700,000 or $0.50 per unit and the series D preferred units of $1,402,000 or
$0.539 per unit.

7.  NET INCOME PER COMMON SHARE

Reconciliations of net income available to common shareholders and weighted
average common shares used in the Company's basic and diluted net income per
common share computations are detailed below (in thousands, except per share
data):
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------
                                                               Three Months    Three Months
                                                                  Ended           Ended
                                                              March 31, 1999  March 31, 1998
---------------------------------------------------------------------------------------------
<S>                                                           <C>             <C>
Computation of Net Income Available to Common Shareholders
Net income available to common
 shareholders - basic                                                $ 9,247         $ 5,378
Minority interests in earnings of Common
 Unitholders in the Operating Partnership                              3,432           1,940
---------------------------------------------------------------------------------------------
Net income available to common
 shareholders - diluted                                              $12,679         $ 7,318
---------------------------------------------------------------------------------------------
Computation of Weighted Average Common Shares
Weighted average common shares - basic                                19,728          18,276
Dilutive securities -
 Common Units of limited partnership interest in
  the Operating Partnership                                            7,323           6,592
 Stock options                                                           126             195
---------------------------------------------------------------------------------------------
Weighted average common shares - diluted                              27,177          25,063
---------------------------------------------------------------------------------------------
Net Income per Common Share
 Basic                                                               $  0.47         $  0.29
 Diluted                                                                0.47            0.29
---------------------------------------------------------------------------------------------
</TABLE>

                                       13
<PAGE>
 
Basic net income per common share for the periods presented was computed by
dividing net income available to common shareholders by the weighted average
number of shares of common stock outstanding during the period.  Diluted net
income per common share was computed assuming that the weighted average number
of Common Units outstanding were converted into the equivalent number of shares
of common stock and based on the dilutive effect of stock options outstanding.
The Company had 789,000 and 76,000 additional outstanding stock options,
respectively, and 350,000 outstanding stock warrants that were not dilutive in
the three months ended March 31, 1999 and 1998.  In addition, the convertible
feature of the series C preferred units was not dilutive in the three months
ended March 31, 1999.

8.  SEGMENT DATA

The Company operates as a self-administered and self-managed REIT whose primary
business is the acquisition, development and ownership of industrial and
suburban office properties in the southeast United States and Texas.  At March
31, 1999, the Company's in-service operating property portfolio (based on square
footage) consisted of 89.6% industrial properties, 8.6% suburban office
properties and 1.8% retail and other properties.

The Company manages its properties and operating business through geographic
markets.  Each geographic market is managed by local market managers who are
knowledgeable about the specific real estate fundamentals and characteristics of
the market.  The Company executes its business plan through this geographic
market strategy of utilizing local market knowledge coupled with meaningful
concentrations of properties in those markets.

Segment operating performance is measured on segment earnings before interest
expense and depreciation and amortization expense.  Segment revenues consist
primarily of property operating revenues from in-service properties, but also
include other miscellaneous segment revenues.  Segment earnings consist
primarily of segment revenues less segment property operating, maintenance,
management and real estate tax expenses and direct segment general and
administrative expenses.  To the extent an operating segment generates earnings
from unconsolidated entities, such earnings are included in the measurement of
segment earnings.  The Company's measurement of segment earnings is consistent
with the Company's calculation of segment unleveraged "funds from operations," a
REIT industry measure of operating performance.  Intersegment transactions are
not material to the presentation of the segment data.

                                       14
<PAGE>
 
A summary of reportable segment revenues, segment earnings and segment assets is
detailed below (in thousands):
<TABLE>
<CAPTION>
 
----------------------------------------------------------------------------------------------------------------- 
                                                          North     South                               Segment
                                               Georgia   Carolina  Florida   Tennessee    Other(a)       Total
----------------------------------------------------------------------------------------------------------------- 
<S>                                            <C>       <C>       <C>       <C>         <C>          <C>
Three months ended March 31, 1999       
Segment revenues                               $ 22,165  $  6,908  $  5,778   $  4,762   $  4,808     $   44,421
----------------------------------------------------------------------------------------------------------------- 
Segment earnings                               $ 17,684  $  5,180  $  3,957   $  3,754   $  3,432     $   34,007
----------------------------------------------------------------------------------------------------------------- 
Segment assets(b)                              $605,761  $222,372  $195,232   $185,478   $229,940     $1,438,783
----------------------------------------------------------------------------------------------------------------- 
                                        
Three months ended March 31, 1998       
Segment revenues                               $ 18,381  $  5,249  $  4,807   $  3,002   $  1,254     $   32,693
----------------------------------------------------------------------------------------------------------------- 
Segment earnings                               $ 14,912  $  3,787  $  3,187   $  2,417   $    762     $   25,065
----------------------------------------------------------------------------------------------------------------- 
Segment assets(b)                              $539,261  $171,812  $183,779   $124,066   $ 66,651     $1,085,569
----------------------------------------------------------------------------------------------------------------- 
</TABLE> 
 
A reconciliation of segment earnings to consolidated net income is as follows:
<TABLE> 
<CAPTION> 
----------------------------------------------------------------------------------------------------------------- 
                                                                          Three Months            Three Months
                                                                              Ended                    Ended
                                                                          March 31, 1999          March 31, 1998
----------------------------------------------------------------------------------------------------------------- 
<S>                                                                          <C>                     <C> 
Segment earnings                                                             $ 34,007                $   25,065
Depreciation and amortization expense                                         (11,344)                   (8,361)
Interest expense                                                               (9,103)                   (6,102)
Corporate general and administrative expense                                   (1,003)                     (563)
Interest income                                                                   325                       279
Gain on sale of real estate assets                                              4,899                        --
Minority interests                                                             (5,534)                   (1,940)
----------------------------------------------------------------------------------------------------------------- 
Consolidated net income                                                      $ 12,247                $    8,378
----------------------------------------------------------------------------------------------------------------- 
</TABLE>
(a)  Represents aggregate data for operating segments below the quantitative
     threshold prescribed by SFAS 131.
(b)  At period end.
 

                                       15
<PAGE>
 
PART I - FINANCIAL INFORMATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS


The following discussion should be read in conjunction with the accompanying
consolidated condensed financial statements and notes thereto, included
elsewhere herein.  In addition to historical information, management's
discussion and analysis and other statements issued or made from time to time by
the Company or its representatives contain statements which may constitute
"Forward-looking Statements" within the meaning of the Securities Act of 1933,
as amended, and the Securities Exchange Act of 1934, as amended, each as amended
by the Private Securities Litigation Reform Act of 1995, 15 U.S.C.A. Sections
77z-2 and 78u-5 (Supp. 1996).  Those statements include statements regarding the
intent, belief or current expectations of the Company and members of its
management team as well as the assumptions on which such statements are based.
Any such Forward-looking Statements are not guarantees of future performance and
the Company's actual results could differ materially from those set forth in
such Forward-looking Statements.  Factors currently known to management that
could cause actual results to differ materially from those set forth in such
Forward-looking Statements include general economic conditions, local real
estate conditions, timely re-leasing of occupied square footage upon expiration,
interest rates, availability of equity and debt financing, current construction
schedules, the status of lease negotiations with potential tenants, the
satisfactory completion of due diligence procedures and other risks detailed
from time to time in the Company's filings with the Securities and Exchange
Commission, including Quarterly Reports on Form 10-Q, Current Reports on 
Form 8-K and Annual Reports on Form 10-K.  The Company undertakes no 
obligation to update or revise Forward-looking Statements to reflect changed
assumptions, the occurrence of unanticipated events or changes to future
operating results over time.

General Background
The Company was founded in 1965 and operated as a private real estate company
until August 1994, when it completed an initial public offering and elected to
be taxed as a REIT.  As a self-administered and self-managed REIT, the Company
owns, develops, acquires and manages primarily high-quality industrial and
suburban office properties in the southeast United States and Texas.  For a
further description of the Company, see Note 1 to the consolidated condensed
financial statements.

Announced Merger Transaction
On March 1, 1999, the Company announced that it had entered into an Agreement
and Plan of Merger (the "REIT Merger Agreement") with Duke Realty Investments,
Inc., an Indiana based REIT specializing in industrial and office building
development and ownership ("Duke"), and that the Operating Partnership had
entered into an Agreement and Plan of Merger (the "OP Merger Agreement" and,
together with the REIT Merger Agreement, the "Merger Agreements") with Duke
Realty Limited Partnership, an Indiana limited partnership of which Duke is the
managing general partner ("Duke OP").  The Merger Agreements provide for a
merger of the Company with and into Duke (the "REIT Merger") and a merger of the
Operating Partnership with and into Duke OP (the "OP Merger" and, together with
the REIT Merger, the "Mergers").  At the effective time of the Mergers, Duke
will change its name to Duke-Weeks Realty Corporation.

Pursuant to the Merger Agreements:  (i) each outstanding share of common stock,
par value $0.01 per share, of the Company ("Weeks Common Stock") will be
converted into the right to receive 1.38 shares 

                                       16
<PAGE>
 
of common stock, par value $0.01 per share, of Duke ("Duke Common Stock"), 
(ii) each issued and outstanding share of 8.0% Series A Preferred Stock, par
value $0.01 per share, of the Company will be converted into the right to
receive one preference share representing 1/1000 of a share of 8.0% Series F
Cumulative Redeemable Preferred Stock, par value $0.01 per share, of Duke; 
(iii) each issued and outstanding share of 8.625% Series D Cumulative Redeemable
Preferred Stock, par value $0.01 per share, of the Company will be converted
into the right to receive one preference share representing 1/1000 of a share of
8.625% Series H Cumulative Redeemable Preferred Stock, par value $0.01 per
share, of Duke; (iv) each issued and outstanding Common Unit in the Operating
Partnership will be converted into 1.38 common units of limited partnership
interest in Duke OP; (v) each issued and outstanding 8.0% Series A Preferred
Unit in the Operating Partnership will be converted into one 8.0% Series F
Cumulative Redeemable Preferred Unit in Duke OP; (vi) each issued and
outstanding 8.0% Series C Preferred Unit in the Operating Partnership will be
converted into one 8.0% Series G Cumulative Redeemable Preferred Unit in Duke
OP; and (vii) each issued and outstanding 8.625% Series D Preferred Unit in the
Operating Partnership will be converted into one 8.625% Series H Cumulative
Redeemable Preferred Unit in Duke OP.

Holders representing 2% of the outstanding Weeks Common Stock have entered into
voting agreements, agreeing to vote their shares in favor of the transactions
contemplated by the Merger Agreements.  Holders representing 5% of the
outstanding Duke Common Stock have entered into voting agreements, agreeing to
vote their shares in favor of the transactions contemplated by the Merger
Agreements.  The requisite approvals of the partners of Duke OP and the
Operating Partnership to the transactions have been obtained.

The consummation of the transactions contemplated by the Merger Agreements is
expected to occur on or about June 30, 1999 and is subject to approval by the
stockholders of Duke and the shareholders of the Company and satisfaction of
certain other customary closing conditions.  Additionally, the consent of
certain Company debt holders, lenders and others will be required to consummate
the Mergers.  There can be no assurance that the transactions contemplated by
the Merger Agreements will be consummated.  The Company has agreed with Duke
that if the REIT Merger Agreement is terminated under certain circumstances, the
Company will pay Duke certain fees and expenses.  Duke has agreed with the
Company that if the REIT Merger Agreement is terminated under certain other
circumstances, Duke will pay the Company certain fees and expenses.

                                       17
<PAGE>
 
Results of Operations
Operating information relating to the Company's properties for the three months
ended March 31, 1999 and 1998, is summarized below (in thousands):
<TABLE>
<CAPTION>
 
----------------------------------------------------------------------------
                                       Three Months    Three Months
                                           Ended           Ended        %
                                      March 31, 1999  March 31, 1998  Change
============================================================================
<S>                                   <C>             <C>             <C>
Rental revenues                            $38,520         $28,345    35.9%
Tenant reimbursements                        5,561           3,960    40.4%
----------------------------------------------------------------------------
Property operating revenues                 44,081          32,305    36.5%
----------------------------------------------------------------------------
Operating, maintenance and
 management expenses                         6,341           4,721    34.3%
Real estate taxes                            3,912           2,746    42.5%
Depreciation and amortization               11,344           8,361    35.7%
----------------------------------------------------------------------------
Property operating expenses                 21,597          15,828    36.4%
----------------------------------------------------------------------------
Property operating revenues less
 property operating expenses               $22,484         $16,477    36.5%
============================================================================
</TABLE>

Period to period comparisons of property operating revenues and expenses for
1999 and 1998 are discussed herein using the categories "core properties,"
"development properties" and "acquisition properties."  Core properties are
defined as properties which were stabilized and operating as of January 1, 1998.
The Company defines a property as stabilized upon the earlier of substantial
lease-up or one year from building shell completion.  Development properties
reflect properties completed and stabilized, and acquisition properties are
properties acquired, subsequent to January 1, 1998.

For the comparable three months ended March 31, 1999 and 1998, operating results
of the core properties, exclusive of core properties sold in January 1999 (see
Note 3 to the consolidated condensed financial statements), are summarized below
(in thousands).  Core properties information represents the operating results of
223 properties totaling approximately 15,942,000 square feet and excludes the 
operating results of 19 properties totaling 1,073,000 square feet, sold in 
January 1999.
<TABLE>
<CAPTION>
------------------------------------------------------------------------------
                                       Three Months     Three Months
                                           Ended            Ended          %
                                      March 31, 1999   March 31, 1998   Change
==============================================================================
<S>                                    <C>              <C>              <C>
Rental revenues                            $22,728          $22,447      1.3%
Tenant reimbursements                        3,533            3,234      9.3%
------------------------------------------------------------------------------
Property operating revenues                 26,261           25,681      2.3%
------------------------------------------------------------------------------
Operating, maintenance and
 management expenses                         3,561            3,418      4.2%
Real estate taxes                            2,129            2,032      4.8%
Depreciation and amortization                7,068            6,726      5.1%
------------------------------------------------------------------------------
Property operating expenses                 12,758           12,176      4.8%
------------------------------------------------------------------------------
Property operating revenues less
 property operating expenses               $13,503          $13,505      0.0%
==============================================================================
Average occupancy                             94.8%            96.4%
==============================================================================
</TABLE>

                                       18
<PAGE>
 
Comparison of Operating Results for the Three Months Ended March 31, 1999, to
the Three Months Ended March 31, 1998
Property operating revenues (rental revenue plus tenant reimbursements)
increased $11,776,000 or 36.5% between periods.  Of this increase, $5,304,000
and $7,098,000 were attributable to acquisition and development properties,
respectively, and such increases were offset by a decrease in property operating
revenues from core properties of $626,000.  The increases relating to
acquisition and development properties were due to the acquisition of 49
properties (48 in 1998 and 1 in 1999) totaling approximately 5,187,000 square
feet and the stabilization of 37 development properties (27 in 1998 and 10 in
1999) and one property expansion in 1998 totaling approximately 4,568,000 square
feet.  The decrease relating to core properties was due primarily to the sale of
19 core properties totaling 1,073,000 square feet in January 1999.  Property
operating expenses increased $5,769,000 or 36.4% between periods due primarily
to the growth in the property portfolio resulting from the acquisition and
development properties, offset somewhat by the decreased property operating
expenses of the core properties sold as discussed above.

Property operating revenues from core properties, exclusive of the core
properties sold in January 1999, increased 2.3% despite a decrease in overall
average occupancy of approximately 1.6%.  This increase in property operating
revenues was due primarily to both rental rate and tenant reimbursement
increases between periods.  Property operating expenses increased 4.8% due
primarily to increased utility and real estate tax expense in 1999.  Property
operating revenues less property operating expenses from core properties
increased 1.7%, exclusive of depreciation and amortization expense.

Interest expense increased by $3,001,000 or 49.2% from $6,102,000 for the three
months ended March 31, 1998, to $9,103,000 for the three months ended March 31,
1999, due to increased net interest expense on unsecured bank borrowings and
unsecured note borrowings due primarily to higher average borrowings used to
finance the Company's growth in 1999 compared to 1998.

Company general and administrative expenses increased by $476,000 or 37.2% from
$1,280,000 for the three months ended March 31, 1998, to $1,756,000 for the
three months ended March 31, 1999, due primarily to increased personnel and
related costs associated with the Company's geographic expansion, including the
opening of an office in Dallas, Texas during the third quarter of 1998 and the
continued growth of its existing offices in Orlando and Tampa, Florida during
1998.  As a percentage of total revenue, general and administrative expenses
remained comparable between periods at 4.0% in the first quarter of 1999 and
3.9% in the first quarter of 1998.

Equity in earnings of unconsolidated service companies represents the Company's
99% economic interest in the earnings of the Service Companies and their
subsidiaries after the elimination of interest expense and intercompany profits
to the Company (see Note 5 to the consolidated condensed financial statements).
Equity in earnings of the Service Companies and their subsidiaries increased by
$15,000 or 3.1% from $488,000 for the three months ended March 31, 1998, to
$503,000 for the three months ended March 31, 1999, due primarily to increased
profits from construction service operations and from the Service Companies'
equity investment in Codina Group, Inc., offset by reduced profits from third-
party land sales.  Equity in earnings of unconsolidated real estate entities of
$89,000 in 1999 and $68,000 in 1998 primarily represents the Company's 50% share
of earnings from a single building equity investment.

                                       19
<PAGE>
 
The gain on sale of real estate assets of $4,899,000 in the three months ended
March 31, 1999, represents the profit from the sale of 21 buildings (19 core
properties and two development properties) totaling 1,181,000 square feet (see
Note 3 to the consolidated condensed financial statements).

Segment Operations
The Company manages its business through geographic operating segments and
segment operating performance is measured based on profits before interest
expense and depreciation and amortization expense, referred to herein as
"segment earnings." See note 8 to the consolidated condensed financial
statements for an additional discussion and presentation of segment information.

A comparison of segment earnings for the three months ended March 31, 1999 and
1998 is detailed below (in thousands):
<TABLE>
<CAPTION>
----------------------------------------------------------- 
                           Three Months    Three Months
                              Ended           Ended
Operating Segments        March 31, 1999  March 31, 1998
----------------------------------------------------------- 
<S>                        <C>             <C>
Georgia                      $17,684         $14,912
North Carolina                 5,180           3,787
South Florida                  3,957           3,187
Tennessee                      3,754           2,417
Other                          3,432             762
----------------------------------------------------------- 
Total                        $34,007         $25,065
===========================================================
</TABLE>

Segment earnings, as defined, increased $8,942,000 or 35.7% from $25,065,000 in
the three months ended March 31, 1998 to $34,007,000 in the three months ended
March 31, 1999.  Segment earnings in Georgia increased due primarily to the
stabilization of development properties throughout 1998 and in the first quarter
of 1999.  North Carolina segment earnings increased due primarily to both 
acquisitions and the stabilization of development properties subsequent to March
31, 1998.  South Florida segment earnings in the first quarter of 1999 reflect a
full quarter of earnings from properties acquired in January 1998 plus earnings
from an additional development property stabilized in 1999 compared to a partial
quarter of earnings from the acquisition properties in 1998.  Segment earnings
in Tennessee increased due primarily to properties acquired in 1998.  Other
segment earnings increased due primarily to the earnings from properties
acquired in the Company's entry into the Dallas/Ft. Worth, Texas market in June
1998, additional earnings from 1998 acquisition properties in the Jacksonville,
Florida market and from the stabilization of development properties in Orlando,
Florida in 1998 and 1999.

Liquidity and Capital Resources
The Company continues to generate increasing cash flows from operations.  Cash
provided by operating activities increased 13.3% from $15,938,000 for the three
months ended March 31, 1998, to $18,058,000 for the three months ended March 31,
1999, due primarily to the growth in the Company's operating income resulting
from 37 development properties (27 in 1998 and 10 in 1999) and one property
expansion in 1998 stabilized and from 49 buildings acquired (48 in 1998 and one
in 1999).

The Company's net cash flow from operations is currently sufficient to meet the
Company's current operational needs and to satisfy the Company's current
quarterly dividends on both its common and preferred stock.  Company management
believes that operating cash flows will continue to be adequate to fund these
requirements for the remainder of 1999.  The Company operates as and intends to

                                       20
<PAGE>
 
maintain its qualification as a REIT under the Code.  As a REIT, the Company
will generally not be subject to corporate federal income taxes as long as it
satisfies certain technical requirements of the Code, including the requirement
to distribute 95% of its taxable income to its shareholders.

During the three months ended March 31, 1999, the Company invested $63,560,000
of cash in property acquisition, development and construction activities.  This
compares to $108,297,000 for the same three month period in 1998.  This
decreased cash investment activity reflects primarily the decreased cash
component of the Company's building acquisition activity in 1999 compared to
1998 of approximately $54,252,000 offset by increased development activity.  In
addition, during the first quarter of 1999, the Company received net proceeds of
$51,832,000 from the sale of operating real estate assets.

Financing for the Company's property investment activities, in excess of
activities funded through operating real estate asset sales, consisted primarily
of $22,115,000 of Credit Facility borrowings in the three months ended March 31,
1999 compared to $47,200,000 from common equity offerings and $94,141,000 of net
proceeds from unsecured note borrowings, offset somewhat by reduced Credit
Facility borrowings, in the three months ended March 31, 1998.  The debt and
equity components of the Company's ongoing financing strategy may differ based
on market conditions.

In addition to its operating cash flow, the Company has aggregate borrowing
capacity of $245,000,000 under the Credit Facility (see Note 4 to the
consolidated condensed financial statements), which may be used, among other
things, to meet its operational obligations and annual REIT dividend
requirements.  The Company currently intends to finance its development,
construction and acquisition activities primarily through borrowings under the
Credit Facility, refinanced, as necessary, through the issuance of both common
and preferred equity securities and public and private unsecured debt
obligations.  Additionally, the Company may continue to selectively use real
estate asset sales and other joint venture arrangements to supplement the
financing of its development pipeline.  As of March 31, 1999, the Company had
available capacity under the Credit Facility of approximately $104,860,000.

The Company believes it has adequate liquidity, borrowing capacity and sources
of capital and cash flow, including available capacity under its existing Credit
Facility, remaining capacity of approximately $550,000,000 under a universal
shelf registration statement and cash flow generated from selective real estate
asset sales and other joint venture arrangements, to meet its current
operational requirements, to fund annual principal repayments under existing
mortgage notes payable, and to fund its current development and acquisition
activity.  It is management's expectation that the Company will continue to have
access to the additional capital resources necessary to further expand and
develop its business and to refinance mortgage notes payable as they mature.
These resources include the expansion of the available borrowing capacity under
the Credit Facility, other forms of debt and equity financing, in both public
and private markets.  As an alternative to the more traditional debt and equity
financings used in prior years, the Company has in early 1999, and may continue,
to utilize selective real estate asset sales and other joint venture
arrangements to provide additional sources of capital in periods where the
pricing, terms and availability of other traditional financing sources are not
advantageous to the Company.  Future development and acquisition activities will
be undertaken by the Company only as suitable opportunities arise.  Such
activities are not expected to be undertaken unless adequate sources of
financing are available and a satisfactory budget with an appropriate return on
investment has been internally approved.

                                       21
<PAGE>
 
Total consolidated debt amounted to $668,904,000 at March 31, 1999, including
unsecured note borrowings of $200,000,000, unsecured bank borrowings of
$225,140,000 and mortgage notes payable of $243,764,000.  Of the $243,764,000 of
mortgage indebtedness, $243,164,000 is fixed rate and $600,000 is variable rate.
At March 31, 1999, the weighed average interest rate on the Company's fixed rate
mortgage debt was 8.3% and on its variable rate mortgage debt was 6.1%.  The
weighted average interest rates under the Credit Facility and the unsecured term
loan, exclusive of the impact of the interest rate swap agreements, at March 31,
1999, were 5.9% and 6.3%, respectively.  The weighted average interest rate on
the Company's unsecured notes was 7.125% at March 31, 1999.  Based on the 
outstanding balance of mortgage notes payable at March 31, 1999, the weighted 
average interest rates on the mortgage notes with a final maturity in each 
of the next five years and thereafter were 7.3% in 1999, 9.0% in 2000, 7.9%
in 2001, 8.2% in 2002, 8.3% in 2003 and 8.5% thereafter.

Including total consolidated debt obligations of $668,904,000 and $2,309,000 of
other notes payable on unconsolidated properties, the total debt obligations of
the Company and its unconsolidated entities was $671,213,000 or 40% of total
market capitalization (defined as total debt plus the market equity value of the
Company's equity securities as calculated below) at March 31, 1999 (assuming the
exchange of all of the Common Units of the Operating Partnership for shares of
common stock).  Based on the closing price of the common stock of $28.5625, on
March 31, 1999, and assuming the exchange of all of the Common Units of the
Operating Partnership for shares of common stock, there would be 27,078,747
shares of common stock outstanding with a total market value of $773,437,000,
6,000,000 shares of preferred stock outstanding with a liquidation value of
$150,000,000, 4,000,000 preferred partnership units outstanding with a
liquidation value of $100,000,000 and 350,000 common stock warrants outstanding
with a book value of $1,400,000, resulting in total equity value of
$1,024,837,000.

Current Development and Acquisition Activity
At March 31, 1999, the Company had committed developments and acquisitions
totaling approximately $280,049,000, representing 42 buildings totaling
4,450,000 square feet.  Including new development activity, net of the
stabilization of development properties, between March 31, 1999 and May 10,
1999, the Company had, at May 10, 1999, committed developments and acquisitions
totaling approximately $325,735,000, representing 50 buildings totaling
5,264,000 square feet.   Properties under agreement to acquire as of May 10,
1999, consisted of one building, totaling 90,000 square feet, with a total
expected cost of approximately $5,100,000.  Development properties as of May 10,
1999, consisted of 49 buildings totaling 5,174,000 square feet, with a total
expected cost of approximately $320,635,000.

It is expected that such development and acquisition properties will stabilize
or be acquired as detailed below:
<TABLE>
<CAPTION>
----------------------------------------------------------------- 
                                   Square             Estimated
Year                Buildings       Feet               Cost(a)
----------------------------------------------------------------- 
<S>                 <C>           <C>              <C>
1999                   17         1,683,000        $115,554,000
2000                   33         3,581,000         210,181,000
----------------------------------------------------------------- 
                       50         5,264,000        $325,735,000
----------------------------------------------------------------- 
</TABLE>

                                       22
<PAGE>
 
(a)  For development properties represents the entire estimated cost of the
     property at the estimated stabilization date.

In addition, the Company has committed, subject to closing conditions and the
completing and updating of due diligence procedures, to acquire development land
totaling approximately $32,641,000 over various periods ranging up to five
years.

The information provided above includes Forward-looking Statements about
expected property acquisitions or stabilizations that is based on current
construction schedules, the status of lease negotiations with potential tenants,
the successful completion of due diligence procedures and other relevant factors
currently available to the Company.  There can be no assurance that any of these
factors will not change or that any change will not affect the accuracy of such
Forward-looking Statements.

Supplemental Disclosure of Funds from Operations
The Company believes that funds from operations provides an additional indicator
of the financial performance of the Company.  Funds from operations is defined
by the National Association of Real Estate Investment Trusts ("NAREIT") to mean
net income (loss) determined in accordance with generally accepted accounting
principles ("GAAP") excluding gains (or losses) from debt restructuring and
sales of property, plus depreciation and amortization of real property, and
after adjustments for unconsolidated partnerships and joint ventures.
Adjustments for unconsolidated partnerships and joint ventures will be
calculated to reflect funds from operations on the same basis.  Funds from
operations is influenced not only by the operations of the properties, but also
by the capital structure of the Company.  Accordingly, the Company expects that
funds from operations will be one of the factors considered by its Board of
Directors in determining the amount of cash dividends the Company will pay to
its shareholders.  The Company computes funds from operations under the current
NAREIT definition by subtracting from net income the dividends to preferred
shareholders before making an adjustment for the non-cash items described above.
Funds from operations does not represent cash flow from operating, investing and
financing activities as defined by GAAP, which are discussed under "Liquidity
and Capital Resources."  Additionally, funds from operations does not measure
whether cash flow is sufficient to fund all cash flow needs, including principal
amortization, capital expenditures and dividends to shareholders, and should not
be considered as an alternative to net income for purposes of evaluating the
Company's operating performance or as an alternative to cash flow, as defined by
GAAP, as a measure of liquidity.  Funds from operations presented herein is not
necessarily comparable to funds from operations presented by other real estate
companies due to the fact that not all real estate companies calculate funds
from operations in the same manner.  However, the Company's funds from
operations is comparable to the funds from operations of real estate companies
that use the current NAREIT definition.

The Company's calculation of funds from operations follows the guidelines issued
by NAREIT, including the recognition of rental income on the "straight-line"
basis consistent with its treatment in the Company's statement of operations
under GAAP.  The "straight-line" rental adjustment increased rental revenues by
$1,089,000 and $251,000 for the three months ended March 31, 1999 and 1998,
respectively.  In accordance with the NAREIT guidelines, the Company excludes
gains or losses on sales of operating (previously depreciated) real estate
assets in calculating funds from operations, but includes gains or losses on
sales of undepreciated assets (land) that are of a recurring nature.  Pre-tax
gains on land sales are included in funds from operations in the amount of $0
and $419,000 for the three months ended March 31, 1999 and 1998, respectively.

                                       23
<PAGE>
 
For the three months ended March 31, 1999, funds from operations increased by
$2,544,000 or 22.1% to $14,078,000 compared to funds from operations of
$11,534,000 for the three months ended March 31, 1998.  Funds from operations
for the three months ended March 31, 1999 and 1998 are detailed below (in
thousands):
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------- 
                                                     Three Months     Three Months
                                                        Ended             Ended
                                                    March 31,  1999   March 31, 1998
======================================================================================
<S>                                                 <C>               <C>
Net income available to
 common shareholders                                    $ 9,247          $ 5,378
Minority interests of common unitholders                  3,432            1,940
Depreciation and amortization                            11,344            8,361
Depreciation and amortization -
 unconsolidated entities                                    180               15
Gain on sale of operating real estate assets             (4,899)              --
-------------------------------------------------------------------------------------- 
Funds from operations available to
 common shareholders
 (Common Units fully converted)                         $19,304          $15,694
Percentage attributable to common
 shareholders(1)                                           72.9%            73.5%
-------------------------------------------------------------------------------------- 
Funds from operations attributable to
 common shareholders                                    $14,078          $11,534
-------------------------------------------------------------------------------------- 
Weighted average common shares
  Basic                                                  19,728           18,276
  Diluted(2)                                             27,177           25,063
======================================================================================
</TABLE>
(1)  Represents the Company's weighted average common ownership percentage of
     the Operating Partnership for the period.
(2)  Represents the weighted average shares of common stock outstanding plus the
     weighted average Common Units of limited partnership interest in the
     Operating Partnership outstanding (Common Units are convertible into common
     stock on a one-for-one basis) and the dilutive effect of outstanding stock
     options.  Weighted average Common Units outstanding totaled 7,323,000 and
     6,592,000 for the three months ended March 31, 1999 and 1998, respectively.
     Common stock equivalents related to outstanding stock options totaled
     126,000 and 195,000 for the three months ended March 31, 1999 and 1998,
     respectively.

                                       24
<PAGE>
 
Supplemental Information on Capital Expenditures and Leasing Costs
The following table details the Company's capital expenditures and leasing costs
for the three months ended March 31, 1999 and 1998 (in thousands):
<TABLE>
<CAPTION>
 
-------------------------------------------------------------------------------------- 
                                                       Three Months    Three Months
                                                          Ended           Ended
                                                      March 31, 1999  March 31, 1998
======================================================================================
<S>                                                    <C>             <C>
Building acquisitions(1)(2)                               $43,117        $179,581
Development and land acquisition activity(3)(4)            52,706          60,380
Non-revenue-producing building
 improvements                                                 626             378
Tenant improvement and leasing costs
 on second-generation leases(5)                             2,054           1,827
-------------------------------------------------------------------------------------- 
                                                          $98,503        $242,166
======================================================================================
</TABLE>
(1)  Building acquisitions in 1998 included two buildings acquired while still
     under development.
(2)  Reflects aggregate acquisition costs including the Company's investment
     and advances to unconsolidated entities of $32,733,000 in the three months
     ended March 31, 1999.  Reflects aggregate acquisition costs including the
     assumption of indebtedness of $80,897,000, the issuance of $29,824,000 of
     Common Units and other assumed liabilities, net of other assets, of
     $4,224,000 in the three months ended March 31, 1998.
(3)  Includes first-generation leasing costs on stabilized development
     properties totaling $1,068,000 and $543,000 in the three months ended March
     31, 1999 and 1998, respectively.
(4)  Reflects aggregate development and leasing costs including of the issuance
     of $300,000 of Common Units and including the increase in construction
     payables of $101,000 in the three months ended March 31, 1999.  Reflects
     aggregate development and leasing costs including the settlement of real
     estate loans of $7,898,000, the issuance of $6,299,000 of Common Units and
     exclusive of the decrease in construction payables of $3,727,000 in the
     three months ended March 31, 1998.
(5)  Includes second-generation leasing costs totaling $943,000 and $807,000 in
     the three months ended March 31, 1999 and 1998, respectively.

                                       25
<PAGE>
 
The following table summarizes by period the Company's capitalized tenant
improvement and leasing costs incurred in the renewal or re-leasing of
previously occupied space for the three months ended March 31, 1999, and the
year ended December 31, 1998, respectively.  The information detailed below is
presented based on the date the tenants occupy the leased space.
<TABLE>
<CAPTION>
 
Capitalized Tenant Improvements and Leasing Costs
----------------------------------------------------------------------------------------------- 
                                                                   Three Months       Year
                                                                      Ended           Ended
(In thousands, except per square foot information)               March 31, 1999   Dec. 31, 1998
=============================================================================================== 
<S>                                                           <C>             <C>
Industrial Properties
 Re-leasing
   Square feet re-leased                                                 490          1,843
   Capitalized tenant improvements and leasing commissions             $ 532         $3,826
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $1.09         $ 2.08
 Renewal
   Square feet renewed                                                   195          2,173
   Capitalized tenant improvements and leasing commissions             $  92         $1,582
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $0.47         $ 0.73
 Total
   Square feet                                                           685          4,016
   Capitalized tenant improvements and leasing commissions             $ 624         $5,408
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $0.91         $ 1.35
=============================================================================================== 
Suburban Office Properties
 Re-leasing
   Square feet re-leased                                                  16            103
   Capitalized tenant improvements and leasing commissions             $  65         $  347
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $4.04         $ 3.36
 Renewal
   Square feet renewed                                                    40             92
   Capitalized tenant improvements and leasing commissions             $ 109         $  160
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $2.70         $ 1.74
 Total
   Square feet                                                            56            195
   Capitalized tenant improvements and leasing commissions             $ 174         $  507
   Capitalized tenant improvements and leasing commissions
    per square foot                                                    $3.08         $ 2.60
=============================================================================================== 
</TABLE>

                                       26
<PAGE>
 
Supplemental Disclosure of Tenant and Lease Expiration Information

Tenants
As of March 31, 1999, the Company's properties were leased to 1,028 tenants
including local, regional, national and international companies.  The Company's
30 largest tenants (measured by annualized base rent for leases in place in
stabilized properties and in properties under development or in lease-up where
tenants were paying rent at March 31, 1999) occupy a total of approximately
5,788,000 square feet and represent 25.9% of the annualized base rent as shown
in the table below.
<TABLE>
<CAPTION>
30 Largest Tenants Measured By Annualized Base Rent
---------------------------------------------------------------------------------------------------
                                                                             % of Total  
                                                    Number                   Annualized  
                                         Square       of       Annualized       Base               
 Rank Tenant                              Feet      Leases    Base Rent(1)     Rent(1)       State 
---------------------------------------------------------------------------------------------------
<S>   <C>                                <C>        <C>      <C>               <C>          <C> 
   1  Northern Telecom, Inc.(2)          401,349      8      $ 3,002,853         1.9%       NC,TN
   2  Interpath Communications, Inc.     189,875      4        2,417,325         1.5%         NC
   3  United States Postal Service       409,026      5        2,340,518         1.5%       FL,TX
   4  Scientific Atlanta, Inc.           469,633      8        2,244,179         1.4%         GA
   5  Federal Express Corporation        237,890      4        2,098,942         1.3%       FL,TN
   6  Hussmann Corporation               374,045      1        1,984,687         1.2%         GA
   7  PPD Pharmaco, Inc.                 164,495      5        1,895,200         1.2%         NC
   8  United Healthcare Services, Inc.   146,106      3        1,642,260         1.0%      GA,FL,SC
   9  Radiant Systems, Inc.              106,631      1        1,609,789         1.0%         GA
  10  Alltel                             114,476      7        1,541,124         1.0%         NC
  11  Honeywell, Inc.                    119,961      4        1,501,052         0.9%         GA
  12  Ikon Office Solutions, Inc.        177,000      4        1,468,400         0.9%         GA
  13  GTE Mobilnet Service Corporation   126,124      3        1,382,317         0.9%       NC,GA
  14  Tech Data Corporation              181,230      2        1,367,722         0.9%         FL
  15  Radian International LLC            90,159      2        1,177,399         0.7%         NC
  16  Innotrac Corporation               303,481      2        1,124,905         0.7%         GA
  17  Moore U.S.A., Inc.                 274,951      2        1,085,266         0.7%       TX,FL    
  18  AIG Claim Services, Inc.            52,372      1        1,050,059         0.7%         GA
  19  Pioneer-Standard Electronics, Inc. 109,957      2        1,035,436         0.6%         GA
  20  Square D Company                   102,262      2        1,000,749         0.6%       TN,FL
  21  DeVry Inc.                          64,981      1          928,269         0.6%         GA
  22  The Athlete's Foot Group, Inc.     162,651      1          924,069         0.6%         GA
  23  Anixter, Inc.                      167,460      2          913,150         0.6%         GA
  24  Merisel, Inc.                      142,487      2          900,147         0.6%         FL
  25  Fisher Scientific Company          223,219      1          875,019         0.5%         GA
  26  Reckitt & Colman, Inc.             356,000      2          871,840         0.5%         GA
  27  Tekelec                             98,210      3          858,680         0.5%         NC
  28  Fritz Companies, Inc.              282,400      4          841,118         0.5%       GA,TN
  29  Data General Corporation            89,680      2          817,304         0.5%         GA
  30  National Data Corporation           50,283      4          786,776         0.4%         GA
-------------------------------------------------------------------------------------------------- 
                                       5,788,394     92      $41,686,554         25.9%
-------------------------------------------------------------------------------------------------- 
</TABLE>
(1)  Annualized cash base rent net of rental concessions, if any, based on
     leases in place for stabilized properties and in properties under
     development or in lease-up where tenants were paying rent as of March 31,
     1999.
(2)  Leases with Northern Telecom totaling 370,824 square feet expire on June
     30, 2005, but are subject to an early-termination right that permits
     Northern Telecom to terminate any of the leases on June 30, 2000, by
     delivering an early-termination notice to the Company on or before June 30,
     1999.  In the event it exercises its early-termination option, Northern
     Telecom will be obligated to make certain termination payments to the
     Company.

                                       27
<PAGE>
 
Lease Expirations
The following tables show scheduled lease expirations for the Company's total
property portfolio, for its industrial property portfolio and for its suburban
office portfolio, respectively, based on leases under which tenants were paying
rent in both stabilized and pre-stabilized properties as of March 31, 1999,
assuming no exercise of renewal options or termination rights, if any:
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------- 
                                           Square                      Annualized     % of Total
               Year of                      Feet        % of Total    Base Rent(1)    Annualized
             Expiration                (In thousands)  Square Feet   (In thousands)  Base Rent(1)
-------------------------------------------------------------------------------------------------- 
<S>                                    <C>             <C>           <C>             <C>
Total Portfolio
                1999                       3,067          12.2%         17,267          10.3%
                2000                       3,413          13.6%         21,650          12.9%
                2001                       3,088          12.3%         18,519          11.0%
                2002                       3,206          12.8%         25,989          15.5%
                2003                       3,494          13.9%         27,322          16.2%
                2004                       1,696           6.7%         12,082           7.2%
                2005                       1,470           5.8%          4,971           3.0%
                2006                         739           2.9%          4,094           2.4%
                2007                       1,280           5.1%          7,940           4.7%
                2008                       1,589           6.3%         13,881           8.3%
                2009                         701           2.8%          4,852           2.9%
                2010                          65           0.3%             90           0.1%
                2011                         405           1.6%          2,201           1.3%
                2012                         191           0.8%          2,167           1.3%
           2013 and later                    735           2.9%          5,113           2.9%
-------------------------------------------------------------------------------------------------- 
                                          25,139(2)      100.0%       $168,138         100.0%
==================================================================================================
Industrial Properties
                1999                       2,884          12.7%         15,073          11.6%
                2000                       3,181          14.1%         18,399          14.1%
                2010                       2,950          13.0%         16,587          12.7%
                2002                       2,691          11.9%         17,456          13.4%
                2003                       3,051          13.5%         19,575          15.0%
                2004                       1,507           6.7%          8,662           6.6%
                2005                       1,439           6.4%          4,511           3.5%
                2006                         721           3.2%          3,767           2.9%
                2007                       1,224           5.4%          7,348           5.6%
                2008                       1,296           5.7%          8,428           6.5%
                2009                         628           2.8%          3,481           2.7%
                2010                          --            --              --            --
                2011                         349           1.5%          2,121           1.6%
                2012                         126           0.6%          1,003           0.8%
           2013 and later                    585           2.5%          4,032           3.0%
--------------------------------------------------------------------------------------------------
                                          22,632         100.0%       $130,443         100.0%
==================================================================================================
                                                            (Table continued on following page)
</TABLE>

                                       28
<PAGE>
 
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------  
                                          Square                       Annualized     % of Total
             Year of                        Feet        % of Total    Base Rent(1)    Annualized
            Expiration                 (In thousands)  Square Feet   (In thousands)  Base Rent(1)
==================================================================================================
<S>                                      <C>             <C>           <C>             <C>
Suburban
Office Properties
               1999                           140           6.7%          1,845           5.3%
               2000                           180           8.6%          2,699           7.8%
               2001                           129           6.2%          1,782           5.1%
               2002                           507          24.3%          8,385          24.2%
               2003                           428          20.5%          7,422          21.4%
               2004                           180           8.6%          3,209           9.3%
               2005                            26           1.2%            382           1.1%
               2006                            17           0.8%            309           0.9%
               2007                            56           2.7%            592           1.7%
               2008                           286          13.7%          5,453          15.8%
               2009                            73           3.5%          1,371           4.0%
               2010                            --            --              --            --
               2011                            --            --              --            --
               2012                            65           3.2%          1,166           3.4%
          2013 and later                       --            --              --            --
--------------------------------------------------------------------------------------------------  
                                            2,087         100.0%        $34,615         100.0%
==================================================================================================
</TABLE>
   (1)  Annualized base rent represents the annualized monthly base rental at
        the time of lease expiration.
   (2)  The total square footage as of March 31, 1999, is comprised of
        approximately 24,559,000 square feet of leases in in-service properties,
        and approximately 580,000 square feet of leases in properties under
        development or in lease-up where tenants are paying rent as of March 31,
        1999.

Recent Accounting Pronouncements
In June 1998, SFAS 133, "Accounting for Derivative Instruments and for Hedging
Activities," was issued prescribing new accounting standards for the accounting
and disclosures of derivative instruments and hedging transactions.  SFAS 133
will require the Company to record all derivative instruments on the balance
sheet at fair value.  Changes in derivative fair values will either be recorded
in earnings along with the changes in fair value of related hedged assets or
liabilities or as an adjustment to shareholders' equity depending on the nature
and type of derivative instrument.  SFAS 133 will be effective for the Company
beginning January 1, 2000.  The Company is evaluating the provisions of SFAS 133
and plans to adopt SFAS 133 in its financial statements beginning in 2000.  The
impact of SFAS 133 on the Company's financial statements will depend on the
extent, type and effectiveness of the Company's hedging activities.  However,
the Company does not believe the effect of adopting SFAS 133 will be material to
its financial position or results of operations.

                                       29
<PAGE>
 
Impact of Inflation
In the last three years, inflation has not had a significant impact on the
Company because of the relatively low inflation rate.  Substantially all tenant
leases do, however, contain provisions designed to protect the Company from the
impact of inflation.  Most of the leases require tenants to pay their share of
operating expenses, including common area maintenance, real estate taxes and
insurance, thereby reducing the Company's exposure to increases in costs and
operating expenses resulting from inflation.  In addition, many of the leases
are for terms of less than seven years, which may enable the Company to replace
existing leases with new leases at higher base rentals if rents under the
existing leases are below the then-existing market rate.  However, there can be
no assurance that the Company would be able to replace existing leases with new
leases at higher base rentals.

Year 2000
General.  The term "year 2000 issue" is a general term used to describe the
various problems that may result from the improper processing of dates and date-
sensitive calculations by computers and other machinery and equipment as the
year 2000 is approached and reached.  The year 2000 issue is the result of many
computer programs recognizing a date ending with "00" as the year 1900 rather
than 2000, causing potential system failures or miscalculations which could
result in disruptions of normal business operations.

State of Readiness.  The Company's primary financial and operating systems are
supplied by third-party suppliers.  Based on communications with these third-
party suppliers, internal evaluations of the third-party systems and internal
assessments of in-house information systems, the Company expects these systems
to be year 2000 compliant by the end of the second quarter of 1999.
Additionally, the Company has evaluated its telephone systems and such systems
are expected to be fully year 2000 compliant before the end of 1999.

The Company is also assessing the potential impact of the year 2000 issue
resulting from the potential failure of its key building mechanical systems or
the failure of its major vendors, suppliers and tenants to be year 2000
compliant.  Key building mechanical systems include, but are not limited to,
HVAC systems, elevators and security systems.  Major vendors and suppliers
include providers of utility services and suppliers of raw materials utilized in
the development and construction of buildings.  The Company's assessments
include the use of questionnaires and direct discussions with such vendors,
suppliers and tenants.  The Company anticipates the completion of its
assessments and evaluations in these areas in the first half of 1999.

Cost to Address Year 2000 Issues.  Through March 31, 1999, the Company has spent
approximately $101,000 to upgrade and replace certain computer hardware systems
and its telecommunication system to ensure year 2000 compliance.  The Company
estimates that it will spend an additional $87,000 on computer hardware system
upgrades and replacements during 1999 relating to year 2000 compliance issues.
A significant portion of such actual and future expenditures are part of the
Company's on-going technology enhancement program and, as such, these
expenditures are not incremental costs associated with year 2000 readiness.  The
Company does not expect to incur additional incremental costs in excess of
amounts stated above relating to year 2000 compliance and the Company does not
believe the total costs of year 2000 compliance to be material to the Company's
consolidated financial condition or results of operations taken as a whole.  The
Company continues to allocate the time and resources necessary to timely resolve
significant year 2000 issues.

                                       30
<PAGE>
 
Risks Presented by Year 2000 Issues.  The Company's major and most reasonably
likely worse case risks associated with the year 2000 issue relate to the
failure of key vendors, suppliers and tenants to be fully year 2000 compliant.
Failures of critical utility systems or other building mechanical systems could
lead to significant business disruptions for tenants.  Failures of tenants'
businesses that rely heavily on information technology or that are involved in
the information technology business could also lead to significant business
disruptions or failures.  These occurrences could impact the Company's cash flow
and results of operations should these disruptions lead to a tenants' inability
to continue to meet their rental obligations to the Company.

Failures of major suppliers to deliver building raw materials to the Company due
to year 2000 issues could result in the Company being unable to complete
buildings in a timely manner or at the costs budgeted by the Company.  This
could result in slower overall business growth and increased costs of
constructing new buildings, both of which could impact the Company's future
financial condition and results of operations.

Based on information obtained from such third parties to date, the Company does
not believe that the impact of the year 2000 issue will have a material adverse
impact on the Company's financial condition or results of operations.  However,
such conclusions are based upon communications, evaluations, and assessments to
date, and if future negative events occur which cannot be resolved in a timely
manner, it could result in material financial risk to the Company.

Contingency Plans.  To date, the Company has not established any contingency
plans for possible year 2000 issues.  After its assessments are completed in the
first half of 1999, the Company anticipates evaluating and developing
contingency plans to the extent such plans are feasible, to address identified
risks.  It is anticipated that any such plans will be developed in the second
half of 1999.

The information provided above regarding the Company's year 2000 preparedness
includes Forward-looking Statements based upon management's current assessment
of year 2000 issues impacting the Company.  Such assessments are, in part, based
on representations of other third parties regarding their year 2000
preparedness.  Such Forward-looking Statements involve risks and uncertainties
and there can be no assurance that any of the factors or statements regarding
the year 2000 issue will not change and that any change will not affect the
accuracy of the Company's Forward-looking Statements.

                                       31
<PAGE>
 
PART I - FINANCIAL INFORMATION
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's principal market risk relates to its exposure to interest changes,
primarily changes in short-term LIBOR and U.S. prime interest rates and medium-
term U.S. treasury security interest rates used as the benchmark interest rate
for the Company's seven to ten year fixed rate unsecured notes.  Changes in
short-term interest rates cause the Company's interest costs on unhedged line of
credit borrowings to increase or decrease on a period to period basis.  Changes
in medium-term U.S. treasury security interest rates will cause the Company's
interest costs on expected future medium-term unsecured note borrowings to
increase or decrease based on changes in the interest rates.

The Company's primary derivative and other financial instruments subject to
interest rate risk are the Company's fixed and variable rate borrowing
arrangements and outstanding interest rate swap arrangements.  The Company's
other financial instruments (cash and cash equivalents, receivables, other
assets, accounts payable and other liabilities) are not generally subject to
interest rate risks due to the short-term nature andtype of these instruments.

The Company used interest rate swap and treasury rate guarantee hedge
arrangements to manage its exposure to interest rate changes.  At March 31,
1999, outstanding interest rate swap arrangements serve to decrease the negative
impact of increased short-term interest rates on the Company's financial results
by fixing interest rates on otherwise variable rate debt instruments.  In prior
years, the Company used treasury rate guarantee hedge arrangements to
effectively fix the interest rate on anticipated future debt issuances, however,
at March 31, 1999, the Company had no outstanding treasury rate guarantee hedge
arrangements.

Following is a summary of the terms of the Company's fixed and variable rate
borrowing arrangements and interest rate swap arrangements at March 31, 1999 (in
thousands):
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------- 
                                                          Principal/              Average   Average
                                                           Notional     Fair     Interest   Years to
                                                            Amount      Value      Rate     Maturity
-------------------------------------------------------------------------------------------------------
<S>                                                       <C>         <C>        <C>        <C>
Debt
  Mortgage Debt
   Fixed rate                                               $243,164  $251,787        8.3%       6.4
   Variable rate                                                 600       600        6.1%      11.6
  Unsecured notes -- fixed rate                              200,000   199,575        7.1%       7.1
  Unsecured term loan -- variable rate                        85,000    85,000        6.3%       2.7
  Unsecured line of credit facilities -- variable rate       140,140   140,140        5.9%       1.6
 
Interest Rate Swaps
  Unsecured line of credit swaps                            $ 40,000  $ (1,083)        --        1.8
   Average pay rate                                               --        --        6.7%        --
   Average receive rate                                           --        --        5.0%        --
  Unsecured term loan swaps                                   85,000       896         --        2.7
   Average pay rate                                               --        --        5.0%        --
   Average receive rate                                           --        --        5.0%        --
</TABLE>

If interest rates under the unsecured line of credit facilities and term loan,
in excess of the $125,000,000 effectively converted to fixed rates discussed
above, and under the Company's variable rate mortgage debt fluctuated by 1.0%,
interest costs to the Company, based on outstanding borrowings at March 31,
1999, would increase or decrease by approximately $1,000,000 on an annualized
basis.

As reflected in the table above, the interest rate swap arrangements would
require the net payment of approximately $187,000 (at March 31, 1999), if the
arrangements were terminated.  Under current accounting rules, these potential
costs are not recognized currently in the Company's financial statements, but
instead are reflected as part of interest expense over the life of the related
hedged borrowings, causing reported interest costs to be higher than current
interest costs on similar unhedged indebtedness.  The costs associated with
terminated swap and hedge arrangements can result in charges to operations to
the extent hedged borrowings are not completed or are no longer outstanding.

At March 31, 1999, the Company does not have any exposure to foreign currency
exchange risk, equity price risk or other material market risks.


                                       32
<PAGE>
 
PART II--OTHER INFORMATION
ITEM 2--CHANGE IN SECURITIES

       During the three months ended March 31, 1999, the Company caused the
       Operating Partnership to issue a total of 10,676 Common Units in the
       Operating Partnership, in partial consideration for the acquisition of
       real estate properties.  The aggregate value of the properties acquired
       by the Company in exchange for such Common Units was approximately
       $300,000.  Common Units are convertible by their holders into shares of
       common stock on a one-for-one basis, or into cash, at the Company's
       option.  The Common Units were issued pursuant to an exemption from
       registration under Section 4(2) of the Securities Act in reliance, in
       part, upon the representations and warranties set forth in the
       acquisition agreements.  Certain of these Common Units are subject to
       registration rights and lock-up agreements which generally restrict the
       disposition of the Common Units until the designated lock-up periods
       expire.

ITEM 6--EXHIBITS AND REPORTS ON FORM 8-K

      (a) Exhibits

          10.1 -  Sixteenth amendment to the Second Amended and Restated
                  Agreement of Limited Partnership of Weeks Realty, L.P. dated
                  January 14, 1999.

          10.2 -  Registration Rights Agreement dated January 14, 1999, by and
                  between Weeks Corporation and Paragon Legacy Associates, Ltd.

          27.1 -  Financial data schedule.

      (b) Reports on Form 8-K

          Form 8-K dated February 28, 1999 and filed on March 5, 1999,
          announcing the execution of an Agreement and Plan of Merger between
          Weeks Corporation and Duke Realty Investments, Inc.
 

                                       33
<PAGE>
 

SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                         WEEKS CORPORATION
                                        --------------------------------------
                                         (Registrant)
 
 
 
May 14, 1999                             /s/ A. R. Weeks, Jr.
                                        --------------------------------------
                                         A. R. Weeks, Jr.
                                         Chairman of the Board and
                                         Chief Executive Officer
 
 
 
May 14, 1999                             /s/ David P. Stockert
                                        --------------------------------------
                                         David P. Stockert
                                         Senior Vice President and
                                         Chief Financial Officer


                                       34
<PAGE>
 
                                 EXHIBIT INDEX
                                        
Exhibit No.  Description
--------------------------------------------------------------------------------
   10.1      Sixteenth amendment to the Second Amended and Restated Agreement of
             Limited Partnership of Weeks Realty, L.P. dated January 14, 1999.

   10.2      Registration Rights Agreement dated January 14, 1999, by and
             between Weeks Corporation and Paragon Legacy Associates, Ltd.

   27.1      Financial data schedule.



                                      35