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Monday 27 July, 2009

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Liberty Property Trust Announces Second Quarter...

Liberty Property Trust Announces Second Quarter Results

PR Newswire


MALVERN, Pa., July 27 /PRNewswire-FirstCall/ -- Liberty Property Trust (NYSE: LRY) reported that net income per common share (diluted) was $0.35 per share for the quarter ended June 30, 2009, compared to $0.34 per share (diluted) for the quarter ended June 30, 2008. For the six-month period ended June 30, 2009, net income per common share (diluted) was $0.62, compared to $.67 per share for the same period in 2008.  


Funds from operations available to common shareholders (diluted) (“FFO”) for the second quarter of 2009 was $0.72 per share, compared to $0.80 per share for the second quarter of 2008. FFO per share for the six-month period ended June 30, 2009 was $1.44, compared to $1.60 per share for the same period in 2008.  A reconciliation of GAAP net income to FFO is included in the financial tables accompanying this press release.  Funds from operations for the second quarter include termination fees of $1.1 million, and an impairment charge of $3.8 million.


“Liberty’s solid performance during the second quarter on both the operational and capital fronts is a reflection of the resiliency of the company’s operating strategy and balance sheet, despite the pressures of a very tough economic environment,” said Bill Hankowsky, chief executive officer. “Liberty’s tenants understand the value of our high-quality, well-managed portfolio, and they are confident in our ability and dedication to making their workplaces work for them in a time of uncertainty.”  


Portfolio Performance


Leasing: At June 30, 2009 Liberty’s in-service portfolio of 77.3 million square feet was 89.4% occupied, compared to 90.1% at the end of the first quarter. The decrease in occupancy was primarily driven by two large industrial distribution leases.  During the quarter, Liberty completed lease transactions totaling 4.5 million square feet of space.


Same Store Performance: Property level operating income for same store properties increased by 0.5% on a cash basis and by 1.2% on a straight line basis for the second quarter of 2009 compared to the same quarter in 2008.



Capital Activities and Balance Sheet Management


Common Share Sales: During the second quarter of 2009, Liberty sold 5.5 million shares pursuant to a continuous offering program, generating net proceeds of $122.2 million.


Senior Note Obligations: During the quarter, Liberty purchased $3.5 million of its March 2011 Senior Notes and $4.9 million of its August 2012 Senior Notes.  These notes were purchased at a $0.6 million discount.  This discount is included in FFO as a debt extinguishment gain. Liberty repaid $238.6 million of 7.75% medium term notes which matured on April 15, 2009.  


Property Sales: Liberty sold 10 operating properties, which contained 461,000 square feet of leaseable space, for $34.7 million.


Real Estate Investments


Development: During the second quarter, Liberty brought into service three development properties totaling 1.1 million square feet for a total investment of $73.6 million.  These properties were 52.6% occupied at June 30th .  Leases have been signed for an additional 126,000 square feet in these properties, and these leases will commence during the third and fourth quarters.  


During the second quarter Liberty commenced development on a $12.3 million, 75,000 square foot build-to-suit expansion for an existing tenant at 180 South Warner Road in King of Prussia, PA.


As of June 30, 2009, Liberty had 3.4 million square feet of wholly-owned and joint venture properties under development.  This activity represents a total projected investment of $487.7 million, with an expected yield of 7.4%.  The properties were 61.1% leased at June 30.


Acquisitions: Liberty acquired no properties during the quarter.



About the Company


Liberty Property Trust (NYSE: LRY) is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties.  Liberty's 77 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.  


Additional information about the Company, including Liberty’s Quarterly Supplemental Package with detailed financial information is available in the Investors section of the Company’s web site at www.libertyproperty.com.  If you are unable to access the web site, a copy of the supplemental package may be obtained by contacting Liberty by phone at 610-648-1704, or by e-mail to [email protected].



Liberty will host a conference call during which management will discuss second quarter results, on Tuesday, July 28, 2009, at 1 p.m. eastern time.  To access the conference call in the United States or Canada, please dial 1-888-870-2815.  For international access, dial 706-643-7691.  No password or code is needed.  A replay of the call will be available by dialing 1-800-642-1687 for US/Canada participants or 706-645-9291 for international participants.  A passcode is needed for the replay: 16828993. The call can also be accessed via the Internet on the Investors page of Liberty’s web site at www.libertyproperty.com for two weeks following the call.


The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law.  Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved.  As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results.  These factors include, without limitation, the uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, the financial condition of tenants, the uncertainties of real estate development and construction activity, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes, potential liability relative to environmental matters and other risks and uncertainties detailed in the company’s filings with the Securities and Exchange Commission.  The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.













SOURCE Liberty Property Trust


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