Liberty Property Trust LPT announced the sale of an office complex for $63.5 million. The sale includes a fully-leased, three-building complex, including 250,185 square feet of office space in Wayne, PA. The move is part of the company’s portfolio repositioning strategy.
Recently, the company struck a lease deal for 62,319 square feet space in a rear-load facility in Kennesaw, GA, with Reliable Heating & Air. The lease led to the building being 100% occupied.
In July, the company reported encouraging second-quarter results. The company’s second-quarter 2015 funds from operations (“FFO”) were 67 cents per share, above the Zacks Consensus Estimate of 65 cents as well as the prior-year quarter figure of 59 cents. Quarterly results reflect rent and occupancy growth in its industrial and Class A office categories.
Going forward, we believe that Liberty Property’s efforts on capitalizing development opportunities and strategic dispositions would enhance the overall quality of its portfolio. In sync with its strategy, the company exited the Hampton Roads, VA office market with the sale of 1.3 million square feet of suburban office and flex properties. Yet, the adverse near-term impact on earnings from dispositions and an anticipated rise in interest rates remain as concerns.
Currently, Liberty Property carries a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Boston Properties Inc. BXP, Mack-Cali Realty Corp. CLI and PS Business Parks Inc. PSB. All these stocks carry a Zacks Rank #2 (Buy).
Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment