MALVERN, Pa., July 21 /PRNewswire-FirstCall/ -- Liberty Property Trust
(NYSE: LRY) reported that net income per common share (diluted) was $0.34 per
share for the quarter ended June 30, 2008, compared to $0.57 per share
(diluted) for the quarter ended June 30, 2007. For the six-month period ended
June 30, 2008, net income per common share (diluted) was $0.67, compared to
$1.00 per share for the same period in 2007. Net income reported for the
second quarter and first six months of 2007 included significant gains on
sales of property whereas the gains were less significant for the same periods
in 2008.
Funds from operations available to common shareholders (diluted) ('FFO')
for the second quarter of 2008 was $0.80 per share, compared to $0.79 per
share for the second quarter of 2007. FFO per share for the six month period
ended June 30, 2008 was $1.60, compared to $1.59 per share for the same period
in 2007. A reconciliation of GAAP net income to FFO is included in the
financial tables accompanying this press release.
'Liberty had a very solid quarter in a very shaky environment, aptly
reflecting Liberty's defensive operating platform, which has historically
outperformed during challenging economic times,' said Bill Hankowsky, chief
executive officer. 'Although the economy continues to dampen demand, supply
and demand are generally in balance, Liberty's leasing performance is robust,
and our operating metrics are solid. We are comfortable reaffirming our
guidance for 2008 funds from operations at $3.10-$3.25 per share.'
Portfolio Performance
Leasing: At June 30, 2008 Liberty's in-service portfolio of 74.8 million
square feet was 92.5% occupied, compared to 92.2% at the end of the first
quarter. During the second quarter, Liberty completed lease transactions
totaling 5.1 million square feet of space.
Same Store Performance: Property level operating income for same store
properties increased by 0.6% on a cash basis and decreased by 0.3% on a
straight line basis for the second quarter of 2008 compared to the same
quarter in 2007.
Real Estate Investments
Development: During the second quarter, Liberty brought into service four
wholly-owned development properties totaling 782,000 square feet for a total
investment of $46.9 million. These properties are 100% leased at a current
yield of 10.4%. A joint venture in which Liberty holds a 50% interest brought
into service one development property for a total investment of $25.9 million.
This 55,000 square foot office property in the United Kingdom is unleased.
Also, the final 285,000 square feet of the 1.25 million square foot Comcast
Center development came into service during the second quarter.
During the second quarter, Liberty began development of one industrial
property for an expected total investment of $50.5 million. The 346,000
build-to-suit will serve as a new baking facility for Tasty Baking Company in
Philadelphia.
As of June 30, 2008, Liberty had 5.7 million square feet of wholly-owned
and joint venture properties under development. This activity represents a
total projected investment of $610.3 million, with an expected yield of 8.4%.
The properties were 34.0% leased at June 30.
Acquisitions: Liberty acquired no properties during the quarter.
Dispositions: Liberty sold one operating property, which contained 84,000
square feet of leaseable space for $5.3 million. In addition, a joint venture
in which Liberty holds a 50% interest sold 0.6 acres of land for $1.4 million.
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 75 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 http://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 jleonard@libertyproperty.com.
Liberty will host a conference call during which management will discuss
second quarter results, on Tuesday, July 22, 2008, at 1:00 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: 55023595. The call can also
be accessed via the Internet on the Investors page of Liberty's web site at
http://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.
Liberty Property Trust
Statement of Operations
June 30, 2008
(Unaudited and in thousands, except per share amounts)
Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
Operating Revenue
Rental $127,923 $116,785 $263,436 $231,282
Operating expense
reimbursement 58,458 51,465 116,319 101,641
Total operating revenue 186,381 168,250 379,755 332,923
Operating Expenses
Rental property 36,992 35,307 77,057 70,886
Real estate taxes 23,804 18,405 44,630 34,481
General and administrative 13,070 12,643 27,037 25,726
Depreciation and amortization 43,892 37,396 87,866 73,241
Total operating expenses 117,758 103,751 236,590 204,334
Operating Income 68,623 64,499 143,165 128,589
Other Income/Expense
Interest and other 3,034 2,884 6,128 5,403
Interest (37,316) (28,877) (79,746) (55,884)
Total other income/expense (34,282) (25,993) (73,618) (50,481)
Income before property
dispositions, income taxes,
minority interest and equity
in earnings of unconsolidated
joint ventures 34,341 38,506 69,547 78,108
Gain on property dispositions 835 1,299 1,476 1,451
Income taxes (580) (213) (1,064) (514)
Minority interest (6,630) (6,045) (13,036) (11,524)
Equity in earnings of
unconsolidated joint ventures 1,010 326 1,387 1,055
Income from continuing operations 28,976 33,873 58,310 68,576
Discontinued operations net of
minority interest (including net
gain on property dispositions of
$2,793 and $17,430 for the
quarters ended June 30, 2008 and
2007 and $3,403 and $20,231 for
the six month periods ended
June 30, 2008 and 2007) 2,653 18,554 3,280 23,549
Net Income $31,629 $52,427 $61,590 $92,125
Basic income per common share
Continuing operations $0.31 $0.37 $0.63 $0.75
Discontinued operations $0.03 $0.20 $0.04 $0.26
Total basic income per common
share $0.34 $0.57 $0.67 $1.01
Diluted income per common share
Continuing operations $0.31 $0.37 $0.63 $0.74
Discontinued operations $0.03 $0.20 $0.04 $0.26
Total diluted income per common
share $0.34 $0.57 $0.67 $1.00
Weighted average shares
Basic 92,323 91,597 92,019 91,318
Diluted 92,701 92,328 92,248 92,168
Liberty Property Trust
Statement of Funds From Operations
June 30, 2008
(Unaudited and in thousands, except per share amounts)
Quarter Ended
June 30, 2008 June 30, 2007
Per Per
Weighted Weighted
Average Average
Dollars Share Dollars Share
Reconciliation of net income to FFO
- basic:
Basic - income available to common
shareholders $31,629 $0.34 $52,427 $0.57
Adjustments:
Depreciation and amortization of
unconsolidated joint ventures 4,329 844
Depreciation and amortization 43,252 39,062
Gain on property dispositions (3,164) (18,549)
Minority interest share in addback
for depreciation and amortization
and gain on property dispositions (1,914) (938)
Funds from operations available to
common shareholders - basic $74,132 $0.80 $72,846 $0.80
Reconciliation of net income to FFO
- diluted:
Diluted - income available to common
shareholders $31,629 $0.34 $52,427 $0.57
Adjustments:
Depreciation and amortization of
unconsolidated joint ventures 4,329 844
Depreciation and amortization 43,252 39,062
Gain on property dispositions (3,164) (18,549)
Minority interest excluding
preferred unit distributions 1,428 2,407
Funds from operations available to
common shareholders - diluted $77,474 $0.80 $76,191 $0.79
Reconciliation of weighted average
shares:
Weighted average common shares - all
basic calculations 92,323 91,597
Dilutive shares for long term
compensation plans 378 731
Diluted shares for net income
calculations 92,701 92,328
Weighted average common units 4,190 4,190
Diluted shares for funds from
operations calculations 96,891 96,518
Six Months Ended
June 30, 2008 June 30, 2007
Per Per
Weighted Weighted
Average Average
Dollars Share Dollars Share
Reconciliation of net income to FFO
- basic:
Basic - income available to common
shareholders $61,590 $0.67 $92,125 $1.01
Adjustments:
Depreciation and amortization of
unconsolidated joint ventures 7,877 1,685
Depreciation and amortization 86,630 76,989
Gain on property dispositions (4,132) (21,936)
Minority interest share in addback
for depreciation and amortization
and gain on property dispositions (3,909) (2,484)
Funds from operations available to
common shareholders - basic $148,056 $1.61 $146,379 $1.60
Reconciliation of net income to FFO
- diluted:
Diluted - income available to
common shareholders $61,590 $0.67 $92,125 $1.00
Adjustments:
Depreciation and amortization of
unconsolidated joint ventures 7,877 1,685
Depreciation and amortization 86,630 76,989
Gain on property dispositions (4,132) (21,936)
Minority interest excluding
preferred unit distributions 2,780 4,222
Funds from operations available to
common shareholders - diluted $154,745 $1.60 $153,085 $1.59
Reconciliation of weighted average
shares:
Weighted average common shares -
all basic calculations 92,019 91,318
Dilutive shares for long term
compensation plans 229 850
Diluted shares for net income
calculations 92,248 92,168
Weighted average common units 4,190 4,190
Diluted shares for funds from
operations calculations 96,438 96,358
Liberty Property Trust
Balance Sheet
June 30, 2008
(In thousands, except share amounts)
June 30, 2008 December 31, 2007
Assets (Unaudited)
Real estate:
Land and land improvements $792,067 $796,501
Building and improvements 4,184,851 4,434,731
Less: accumulated depreciation (927,575) (863,609)
Operating real estate 4,049,343 4,367,623
Development in progress 316,369 328,138
Land held for development 221,775 247,124
Net real estate 4,587,487 4,942,885
Cash and cash equivalents 13,579 37,989
Restricted cash 54,535 34,567
Accounts receivable 10,797 12,217
Deferred rent receivable 80,644 80,087
Deferred financing and leasing costs,
net of accumulated amortization
(2008, $134,547; 2007, $119,721) 131,490 144,689
Investment in unconsolidated joint
ventures 319,622 278,383
Prepaid expenses and other assets 78,842 107,932
Total assets $5,276,996 $5,638,749
Liabilities
Mortgage loans $207,496 $243,169
Unsecured notes 2,155,000 2,155,000
Credit facility 375,000 622,960
Accounts payable 50,443 44,666
Accrued interest 37,816 39,725
Dividend and distributions payable 60,705 59,849
Other liabilities 199,732 263,738
Total liabilities 3,086,192 3,429,107
Minority interest 370,362 372,621
Shareholders' Equity
Common shares of beneficial interest,
$.001 par value, 183,987,000 shares
authorized, 94,186,521 (includes
1,249,909 in treasury) and 92,817,879
(includes 1,249,909 in treasury)
shares issued and outstanding as of
June 30, 2008 and December 31, 2007,
respectively 94 93
Additional paid-in capital 2,021,368 1,984,141
Accumulated other comprehensive income 21,707 21,378
Distributions in excess of net income (170,776) (116,640)
Common shares in treasury, at cost,
1,249,909 shares as of June 30, 2008
and December 31, 2007 (51,951) (51,951)
Total shareholders' equity 1,820,442 1,837,021
Total liabilities & shareholders' equity $5,276,996 $5,638,749
SOURCE Liberty Property Trust
