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