Liberty Property Trust (LRY), a real estate investment trust (REIT), divested 32 properties, spanning 1.4 million square feet of space in the Lehigh Valley region in Pennsylvania for approximately $124 million.
The sold properties are approximately 90% leased and consist of offices and high-finish flex properties located in Lehigh Valley Industrial Park, William Penn Business Center, and Stabler Corporate Center. After the sale, Liberty has approximately 16 million square feet of space making it the largest landowner as well as the only national commercial real estate company in the Lehigh valley region.
With the economic revival, the demand for high quality distribution facilities across the region is growing so the company has divested some of its old assets in the Lehigh Valley International Airport submarket diverting its focus towards the growth-oriented western region of the Lehigh Valley and extending to Hagerstown.
The company is also continuing its portfolio repositioning program as it focuses on higher growth markets with better job and rent growth prospects.
Liberty Property specifically focuses on metro-office, multi-tenant industrial and flex properties and markets that have strong demographic and economic fundamentals, which ensure a steady revenue stream for the company.
Based in Pennsylvania, Liberty Property provides leasing, property management, development, construction management, design management, and related services for a portfolio of industrial and office properties. The company has a strong portfolio of multi-tenant industrial and office properties in prime business locations in the U.S. and U.K., and operates across multiple markets that enable mitigation of geographical risk.
In first quarter 2011, Liberty Property reported FFO (fund from operations) of 64 cents per share, which was at par with the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. For fiscal 2011, the company expects FFO in the range of $2.50-$2.65.
Liberty Property currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Duke Realty Corp (DRE) currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.
DUKE REALTY CP (DRE): Free Stock Analysis Report
DUKE REALTY CP (DRE): Free Stock Analysis Report
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