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Liberty Property Trust Reports Operating Results (10-Q)

November 05, 2010 | About:
10qk

10qk

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Liberty Property Trust (LRY) filed Quarterly Report for the period ended 2010-09-30.

Liberty Property Trust has a market cap of $3.88 billion; its shares were traded at around $34.45 with a P/E ratio of 12.6 and P/S ratio of 5.2. The dividend yield of Liberty Property Trust stocks is 5.5%.LRY is in the portfolios of Jim Simons of Renaissance Technologies LLC, Pioneer Investments, Steven Cohen of SAC Capital Advisors.

Highlight of Business Operations:

Disposition activity allows the Company to, among other things, (1) reduce its holdings in certain markets and product types within a market; (2) lower the average age of the portfolio; (3) optimize the cash proceeds from the sale of certain assets; and (4) obtain funds for investment activities. During the three months ended September 30, 2010, the Company realized proceeds of $3.9 million from the sale of one operating property representing 220,000 square feet and five acres of land. During the nine months ended September 30, 2010, the Company realized proceeds of $20.5 million from the sale of five operating properties representing 370,000 square feet and 17 acres of land.

During the three months ended September 30, 2010, an unconsolidated joint venture in which the Company held an interest brought one JV Property under Development into service representing 176,000 square feet and a Total Investment of $134.0 million. During the nine months ended September 30, 2010, unconsolidated joint ventures in which the Company held an interest brought two JV Properties under Development into service representing 640,000 square feet and a Total Investment of $159.0 million. As of September 30, 2010, the Company has no JV Properties under Development.

The Companys average gross investment in operating real estate owned for the three months ended September 30, 2010 increased to $5,248.2 million from $5,041.9 million for the three months ended September 30, 2009. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses and depreciation and amortization expense. For the nine months ended September 30, 2010, the Companys average gross investment in operating real estate owned increased to $5,175.4 million from $4,973.6 million for the nine months ended September 30, 2009. This increase in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses, real estate taxes and depreciation and amortization expense.

Total operating revenue increased to $188.8 million for the three months ended September 30, 2010 from $186.4 million for the three months ended September 30, 2009. The $2.4 million increase was primarily due to the increase in investment in operating real estate. Total operating revenue increased to $561.8 million for the nine months ended September 30, 2010 from $553.9 million for the nine months ended September 30, 2009. The $7.9 million increase was primarily due to the increase in investment in operating real estate and an increase in Termination Fees, which totaled $4.8 million for the nine months ended September 30, 2010 as compared to $2.7 million for the same period in 2009. Termination Fees are fees that the Company agrees to accept in consideration for permitting certain tenants to terminate their leases prior to the contractual expiration date. Termination Fees are included in rental revenue and if a property is sold, related termination fees are included in discontinued operations.

Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $119.7 million for the three months ended September 30, 2010 from $124.4 million for the three months ended September 30, 2009, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $117.9 million for the three months ended September 30, 2010 from $120.4 million for the three months ended September 30, 2009 on a cash basis. These decreases of 3.8% and 2.1%, respectively, are primarily due to a decrease in occupancy in the Companys office and flex portfolios, and also due to reductions in rents.

Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $358.0 million for the nine months ended September 30, 2010 from $371.1 million for the nine months ended September 30, 2009, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and decreased to $352.3 million for the nine months ended September 30, 2010 from $359.6 million for the nine months ended September 30, 2009 on a cash basis. These decreases of 3.5% and 2.0%, respectively, are primarily due to a decrease in occupancy in the Companys office and flex portfolios.

Read the The complete Report

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