Here's Why You Should Hold Liberty Property (LPT) Stock Now
Zacks Investment Research | Nov 23, 2017 07:38AM ET
Liberty Property Trust (NYSE:LPT) is aiming for growth of its industrial platform and financing through the disposition of office assets. The move marks a strategic fit as fundamentals of the industrial real estate market remain robust. This is backed by strong demand, recovery in the economy and job market, strengthening e-commerce and a healthy manufacturing environment.
This is leading to decent growth in rents, helping in growing occupancy level and offering development opportunities. In fact, the company’s industrial portfolio, spanning 93.4 million square feet, enjoyed occupancy of 96.3% at the end of third-quarter 2017, marking an expansion of 40 basis points from the prior quarter. Moreover, industrial distribution rents escalated 14.8% on renewal and replacement leases signed during the quarter. The company’s decent balance sheet and superior access to capital also lends it financial flexibility to pursue growth initiatives.
The company also came up with decent performance in the third quarter. It reported funds from operations (“FFO”) per share of 66 cents, which surpassed the Zacks Consensus Estimate of 63 cents. Total operating revenues of around $193.7 million for the quarter also outpaced the Zacks Consensus Estimate of $167.9 million.
Further, Liberty Property raised guidance and now projects full-year 2017 FFO per share in the range of $2.54-$2.57, compared with $2.49-$2.55 guided earlier. Further, the company revised 2017 industrial same-store NOI guidance range to 3-3.5% from the prior range of 2-3%.
Amid these, shares of Liberty Property outperformed the Zacks Investment Research
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