Liberty Property Issues Capital Recycling Activity Updates

Liberty Property Trust (NYSE:LPT) recently announced the acquisitions and dispositions it executed so far in 2018 and during the fourth-quarter of 2017.

The company sold four properties in the fourth quarter 2017 for $326.6 million. So far this year, it has sold eight office properties and six industrial flex properties for a total of $76.9 million. On the acquisition front, Liberty Property acquired four properties in 4Q17 for a total value of $195.2 million.

Two industrial properties, 700 Uline Way and 800 Uline Way adding up to 1,683,876 square feet and 44 acres of land in Allentown, Pennsylvania, were disposed in 4Q17 for $249.1 million. Another property sold for $30.5 million was an office building, 10720 W Sam Houston Parkway, Houston, TX, spanning across 206,808 square feet and 13 acres of land. Lastly, 2301 Renaissance Boulevard, an office building in King of Prussia, Pennsylvania, totaling 189,502 square foot was sold for $47 million.

Liberty Property is gradually shifting its focus towards industrial properties due to favorable demand-supply conditions. Thus, so far in 2018, the company has disposed off 357,705 square feet of office space and 283,620 square feet of industrial flex space at Renaissance Park in King of Prussia, Pennsylvania. The portfolio includes 2700, 2900, 3000, 3100, 3200, 3400, 3500, 3600, 3602 and 3604 Horizon Drive, and 2300, 2500, 2520 and 2560 Renaissance Boulevard.

As per Mike Hagan, the chief investment officer of Liberty Property, “We are opportunistically executing on the capital recycling program undertaken in 2017, and we are encouraged that the market continues to provide opportunities for sales and target acquisitions.”

The company has successfully acquired a few industrial properties in the fourth-quarter of 2017, all of which are 100% leased. It acquired 369,313 square foot property at One Truman Drive South in Edison, New Jersey for $48.9 million. Further, Liberty Property has successfully purchased 16325 South Avalon Boulevard in Gardena, California for $46.4 million that spans across 210,710 square foot. The company acquired 702,668 square foot at 1221 North Alder Avenue in Rialto, California for $94.2 million. Lastly, 124,217 square foot property at 1775 Hillcrest Road in Norcross, Georgia was bought for $5.7 million.

As a result of these acquisitions, shares of Liberty Property have outperformed the industry it belongs to. Since the beginning of fourth-quarter 2017, the company has gained 0.1% against the decline of 4.3% recorded by the industry.

Liberty Property currently carries a Zacks Rank #4 (Sell). Over the last 30 days, the Zacks Consensus Estimate for 2017 funds from operations (FFO) per share has remained unchanged at $2.55.

Stocks That Warrant a Look

Rexford Industrial Realty (NYSE:REXR) has witnessed an upward earnings estimate revision of nearly 1% for 2018 in the last 60 days. Also, its shares have gained 20.2% in the past 12 months. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for American Tower Corporation (NYSE:AMT) for 2018 has been revised upward marginally over the last 60 days. Also, its shares have moved up 28.4% in 12 months’ time. It carries a Zacks Rank of 2.

Columbia Property Trust’s (NYSE:CXP) Zacks Consensus Estimate for 2018 has been revised upward by 2.1% over the last 60 days. Its shares have gained 1% in the past 12 months. It also carries a Zacks Rank of 2.

Note: All EPS numbers presented in this write up represent FFO per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

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