Liberty Property Trust
) has reaped $367.7 million as proceeds by selling 49 properties
aggregating around four million square feet of space and 140
acres of land. The move is part of the company's strategy to
reposition its portfolio and support its growth
These 49 properties are among the 97 properties that the
company had earlier disclosed of selling. The sale of remaining
assets is slated to be accomplished by late Jan 2014. This
remaining disposition is expected to fetch $329.6 million as
In particular, the divested portfolio of Liberty consists of
office properties spanning 1.9 million square feet, flex
properties aggregating 1.8 million square feet and industrial
properties spread over 274,000 square feet. These comprise the
company's entire Jacksonville, FL portfolio, a part of its Fort
Washington, PA assets, and flex properties in
At present, the U.S. industrial market is benefiting from
healthy demand for industrial properties with improving net
absorption rate and declining vacancy rates. With a thriving
demand for premium-quality industrial space, Liberty Property is
repositioning its portfolio and shifting focus to the industrial
real estate in growing markets. Consequently, the company has
been involved in several deals in the past six months.
In October, Liberty Property sealed the $1.475 billion buyout
of Cabot Industrial Value Fund III that enhanced its industrial
platform by 23 million square feet. The company gained 177
properties in 24 new and existing Liberty industrial markets.
Simultaneously, Liberty Property is making concerted
efforts to lower its exposure to the suburban office properties
Despite the near-term drag to profitability, we believe that
repositioning efforts on the part of Liberty are encouraging. The
dispositions provide the wherewithal to be invested in acquiring
premium assets and poise the company well for riding on the
growth trajectory going forward.
This Pennsylvania-based real estate investment trust (REIT) -
Liberty Property - currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks
Getty Realty Corp.
Alexandria Real Estate Equities Inc.
Chatham Lodging Trust
). While Getty Realty carries a Zacks Rank #1 (Strong Buy),
Alexandria Real Estate and Chatham Lodging Trust hold a Zacks
Rank #2 (Buy).
ALEXANDRIA REAL (ARE): Free Stock Analysis
CHATHAM LODGING (CLDT): Free Stock Analysis
GETTY REALTY CP (GTY): Free Stock Analysis
LIBERTY PPTY TR (LRY): Free Stock Analysis
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