Liberty Property Trust (LRY)

Office and industrial markets continue to weaken throughout the US, which is bad news for Liberty Property Trust (LRY). In the current environment, we do not favor suburban industrial/office companies as rental rates and occupancies continue their downward trend.

The company recently cut its quarterly payout to $0.475 per share, 24% lower than the previous payout. Negative job growth trends will keep shares under pressure. Despite the economic downturn in the US, operations held up relatively well in 4Q08. In addition, the company has used to debt and equity to raise capital in a tight credit environment.

LRY now has plenty of liquidity to address near-term debt maturities. We maintain our near-term Sell rating based primarily on macroeconomic factors.

Liberty Property Trust (LRY) : FULL ANALYST REPORT

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