Liberty Property Trust (LRY)
- a real estate investment trust (REIT) - divested a
Philadelphia-based office property to an affiliate of Cole Real
Estate Investments for roughly $74.7 million. The transaction is in
line with the company's ongoing portfolio repositioning
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The sold facility, which spans 441,000 square foot, is located at
8800 Tinicum Boulevard. The property is occupied by PNC Bank of
The PNC Financial Services Group, Inc. (PNC)
. Notably, Liberty Property constructed the office facility for PNC
Bank in two stages, completed in 1997 and 2000, respectively.
The abovementioned transaction was represented by CBRE
Group Inc. (CBG)
. We expect the divesture to facilitate Liberty Property to
focus on higher growth markets characterized by better job and rent
growth prospects. Also, this is expected to boost the company's
portfolio and strengthen its top line.
Liberty Property specifically focuses on metro office,
multi-tenant industrial, and flex properties and markets that have
strong demographic and economic fundamentals, which ensure a steady
revenue stream. In Feb, in order to boost its portfolio
restructuring initiative, Liberty Property unveiled its plan to
construct an office building for The Vanguard Group in Malvern,
Last month, Liberty Property reported fourth-quarter 2012 results
with FFO (funds from operations) of 63 cents per share, in line
with the Zacks Consensus Estimate as well as the prior-year
quarter. The result was attributable to the strong acquisitions and
development activities, slightly impacted by uncertain economic
Liberty Property currently holds a Zacks Rank #3 (Hold).
Brandywine Realty Trust (BDN)
, another REIT, is performing better than Liberty and holds a Zacks
Rank #2 (Buy).
Note: Funds from operations, a widely used metric to gauge the
performance of REITs, are obtained after adding depreciation and
amortization and other non-cash expenses to net income.