Ryder, Duke, Darden Warn Lease Accounting Change to Cut Earnings

Ryder System Inc., Duke Realty Corp., and Darden Restaurants Inc. are among major public companies warning investors that a historic change in accounting will drag down earnings.

Many companies are beginning to adopt changes in lease accounting rules in the first quarter. But lessors like Ryder and Duke—and the diverse industries they represent—stand out for how the overhaul will defer their revenue and accelerate expenses.

The new standard requires companies to bring operating leases for retail space, barges, and warehouses out of the footnotes and onto the balance sheet for the first time. The rules better align accounting for lessors ...