Liberty Property Trust (LRY, Financial) filed Quarterly Report for the period ended 2009-03-31.
Liberty Property Trust is a self-administered and self-managed Maryland real estate investment trust. The company provides leasing property management acquisition development construction management design management and other related services for a portfolio which consists of industrial and office properties. Liberty Property Trust has a market cap of $2.48 billion; its shares were traded at around $24.5 with a P/E ratio of 7.7 and P/S ratio of 3.3. The dividend yield of Liberty Property Trust stocks is 7.8%. Liberty Property Trust had an annual average earning growth of 2% over the past 10 years.
Total operating revenue decreased to $189.2 million for the three months ended March 31, 2009 from $189.5 million for the three months ended March 31, 2008. This decrease in operating revenue was due to the operations of Comcast Center, which was wholly owned from January 1, 2008 to March 30, 2008 and then was sold into an unconsolidated joint venture in which the Company retains an interest. The decrease was also due to a decrease in Termination Fees, which totaled $0.3 million for the three months ended March 31, 2009 as compared to $1.3 million for the three months ended March 31, 2008. 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. These decreases were partially offset by acquisition and development buildings that came into service throughout 2008 and the three months ended March 31, 2009.
Property level operating income, exclusive of Termination Fees, for the Same Store properties increased to $123.3 million for the three months ended March 31, 2009 from $120.9 million for the three months ended March 31, 2008, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $119.9 million for the three months ended March 31, 2009 from $117.8 million for the three months ended March 31, 2008 on a cash basis. These increases of 1.9% and 1.8%, respectively, are primarily due to an increase in rental rates.
Depreciation and amortization increased to $43.6 million for the three months ended March 31, 2009 from $43.1 million for the three months ended March 31, 2008. The increase was primarily due to the increased investment in tenant improvement costs, which are depreciated over a shorter period than buildings.
Interest expense decreased to $38.4 million for the three months ended March 31, 2009 from $41.7 million for the three months ended March 31, 2008. This decrease was related to a decrease in the average debt outstanding, which was $2,579.2 million for the three months ended March 31, 2009, compared to $3,055.7 million for the three months ended March 31, 2008. The effect of the decrease in the average debt outstanding was partially offset by an increase in the weighted average interest rate to 6.3% for the three months ended March 31, 2009 from 6.2% for the three months ended March 31, 2008, as well as a decrease in interest capitalized due to the decrease in development activity.
Gain (loss) on property dispositions decreased to a loss of $0.3 million for the three months ended March 31, 2009 from a gain of $0.6 million for the three months ended March 31, 2008. The
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Liberty Property Trust is a self-administered and self-managed Maryland real estate investment trust. The company provides leasing property management acquisition development construction management design management and other related services for a portfolio which consists of industrial and office properties. Liberty Property Trust has a market cap of $2.48 billion; its shares were traded at around $24.5 with a P/E ratio of 7.7 and P/S ratio of 3.3. The dividend yield of Liberty Property Trust stocks is 7.8%. Liberty Property Trust had an annual average earning growth of 2% over the past 10 years.
Highlight of Business Operations:
During the three months ended March 31, 2009, the Company brought into service one Wholly Owned Property under Development representing 90,000 square feet and a Total Investment, as defined below, of $15.7 million, and did not initiate any real estate development. As of March 31, 2009, the projected Total Investment of the Wholly Owned Properties under Development was $359.9 million.Total operating revenue decreased to $189.2 million for the three months ended March 31, 2009 from $189.5 million for the three months ended March 31, 2008. This decrease in operating revenue was due to the operations of Comcast Center, which was wholly owned from January 1, 2008 to March 30, 2008 and then was sold into an unconsolidated joint venture in which the Company retains an interest. The decrease was also due to a decrease in Termination Fees, which totaled $0.3 million for the three months ended March 31, 2009 as compared to $1.3 million for the three months ended March 31, 2008. 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. These decreases were partially offset by acquisition and development buildings that came into service throughout 2008 and the three months ended March 31, 2009.
Property level operating income, exclusive of Termination Fees, for the Same Store properties increased to $123.3 million for the three months ended March 31, 2009 from $120.9 million for the three months ended March 31, 2008, on a straight line basis (which recognizes rental revenue evenly over the life of the lease), and increased to $119.9 million for the three months ended March 31, 2009 from $117.8 million for the three months ended March 31, 2008 on a cash basis. These increases of 1.9% and 1.8%, respectively, are primarily due to an increase in rental rates.
Depreciation and amortization increased to $43.6 million for the three months ended March 31, 2009 from $43.1 million for the three months ended March 31, 2008. The increase was primarily due to the increased investment in tenant improvement costs, which are depreciated over a shorter period than buildings.
Interest expense decreased to $38.4 million for the three months ended March 31, 2009 from $41.7 million for the three months ended March 31, 2008. This decrease was related to a decrease in the average debt outstanding, which was $2,579.2 million for the three months ended March 31, 2009, compared to $3,055.7 million for the three months ended March 31, 2008. The effect of the decrease in the average debt outstanding was partially offset by an increase in the weighted average interest rate to 6.3% for the three months ended March 31, 2009 from 6.2% for the three months ended March 31, 2008, as well as a decrease in interest capitalized due to the decrease in development activity.
Gain (loss) on property dispositions decreased to a loss of $0.3 million for the three months ended March 31, 2009 from a gain of $0.6 million for the three months ended March 31, 2008. The
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