MALVERN, Pa., Nov. 17 /PRNewswire-FirstCall/ -- Liberty Property Trust (NYSE: LRY) today announced that its board of trustees has declared a dividend of $0.475 per share on the company's common shares of beneficial interest for the dividend payable on January 15, 2009 to shareholders of record on January 1, 2009. This new quarterly rate equates to an annual rate of $1.90 compared with the previous annual dividend of $2.50, and is expected to result in additional free cash flow of approximately $60 million on an annual basis, which will be used primarily to pay down outstanding indebtedness on the Company's line of credit to increase its financial flexibility.

'It is clear that the continued unprecedented disruption of the capital markets and the accelerating decline of the economy are increasing the value of financial flexibility almost on a daily basis,' said Bill Hankowsky, chairman and chief executive officer. 'In this environment our board has determined that the most prudent course of action is to maintain a dividend payout that maximizes retained capital.'

2008 and 2009 Guidance Affirmed

Liberty affirms its previously-announced expectation to report funds from operations for 2008 in the range of $3.14-$3.16 per share, and for 2009 in the range of $3.00-$3.20 per share.

A reconciliation of FFO to GAAP net income for both 2008 and 2009 is below:

                                       2008 Range             2009 Range
                                     Low          High      Low        High
    Projected net income
     per share                      $1.47         $1.49    $1.24       $1.44
    Depreciation and amortization
     of unconsolidated joint
     ventures                        0.18          0.18     0.16        0.18
    Depreciation and amortization    1.85          1.89     1.78        1.81
    Gain on property dispositions   (0.29)        (0.32)   (0.10)      (0.15)
    Minority interest share of
     addbacks                       (0.07)        (0.08)   (0.08)      (0.08)
    Projected funds from operations
     per share                      $3.14         $3.16    $3.00       $3.20

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 76 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.

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