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Liberty Property Trust Reports Operating Results (10-Q)

November 01, 2012 | About:
10qk

10qk

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Liberty Property Trust (LRY) filed Quarterly Report for the period ended 2012-09-30.

Liberty Property Trust has a market cap of $4.14 billion; its shares were traded at around $35.58 with a P/E ratio of 13.6 and P/S ratio of 6.2. The dividend yield of Liberty Property Trust stocks is 5.4%.

Highlight of Business Operations:

The Company s average gross investment in operating real estate owned for the three months ended September 30, 2012 increased to $5,005.2 million from $4,457.5 million for the three months ended September 30, 2011. For the nine months ended September 30, 2012, the Company's average gross investment in operating real estate owned increased to $4,832.0 million from $4,406.5 million for the nine months ended September 30, 2011.These increases in operating real estate resulted in increases in rental revenue, operating expense reimbursement, rental property expenses, real estate taxes and depreciation and amortization expense. Rental property expense includes utilities, insurance, janitorial, landscaping, snow removal and other costs necessary to maintain a property.

Total operating revenue increased to $171.7 million for the three months ended September 30, 2012 from $165.2 million for the three months ended September 30, 2011. The $6.5 million increase was primarily due to an increase in rental income, which was primarily due to the increase in average gross investment in operating real estate. This increase was partially offset by a decrease in termination fees, which totaled $550,000 for the three months ended September 30, 2012 compared to $664,000 for the same period in 2011. Total operating revenue increased to $509.3 million for the nine months ended September 30, 2012 from $494.5 million for the nine months ended September 30, 2011. The $14.8 million increase was primarily due to an increase in rental income, which was primarily due to the increase in average gross investment in operating real estate as well as an increase in termination fees, which totaled $2.8 million for the nine months ended September 30, 2012 as compared to $2.5 million for the same period in 2011.

Property level operating income, exclusive of termination fees, for the Same Store properties decreased to $112.3 million for the three months ended September 30, 2012 compared to $112.6 million for the three months ended September 30, 2011 on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $111.3 million for the three months ended September 30, 2012 compared to $110.9 million for the three months ended September 30, 2011 on a cash basis. Property level operating income, exclusive of Termination Fees, for the Same Store properties decreased to $338.3 million for the nine months ended September 30, 2012 from $340.5 million for the nine months ended September 30, 2011, on a straight line basis, and decreased to $335.5 million for the nine months ended September 30, 2012 from $335.6 million for the nine months ended September 30, 2011 on a cash basis.

Equity in (loss) earnings of unconsolidated joint ventures decreased to a loss of $3.1 million for the three months ended September 30, 2012 from income of $0.8 million for the three months ended September 30, 2011 and decreased to a loss of $1.4 million for the nine months ended September 30, 2012 from income of $2.5 million for the nine months ended September 30, 2011. During the three months ended September 30, 2012 the joint venture Blythe Valley JV Sarl recorded an impairment charge, the Company's share of which was sufficient to bring the Company's investment in the joint venture to zero. The Company's share of this impairment charge was $4.5 million for the three and nine months ended September 30, 2012. There were no such impairments for the comparable periods in 2011.

Income from discontinued operations decreased to a loss of $1.9 million for the three months ended September 30, 2012 from income of $5.5 million for the three months ended September 30, 2011 and decreased to $5.5 million for the nine months ended September 30, 2012 from $62.7 million for the nine months ended September 30, 2011. The decrease for the three month periods was due to lower operating income related to properties in discontinued operations and a decrease in gain or loss recognized on sales (net of impairment charges) which were a loss of $1.5 million for the three months ended September 30, 2012 compared to a gain of $4.1 million for the same period in 2011. The decrease for the nine month periods was due to lower operating income related to properties in discontinued operations and the decrease in gains recognized on sales (net of impairment charges) which were $2.5 million for the nine months ended September 30, 2012 compared to $54.7 million for the nine months ended September 30, 2011.

Read the The complete Report

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