We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Liberty Property Gives 2017 FFO View, Dividend Cut Likely
Read MoreHide Full Article
Liberty Property Trust expects its 2017 funds from operations (FFO) per share to range between $2.40 and $2.52. Further, this Malvern, PA-based real estate investment trust (REIT) has reaffirmed its 2016 FFO per share guidance in the range of $2.36–$2.38 per share. The Zacks Consensus Estimate for 2017 FFO per share is currently pegged at $2.46 and the 2016 estimate for the same is $2.37.
However, the company expects a cut in its quarterly dividend to 40 cents from a payout of 47.5 cents, beginning the first-quarter 2017 payout in Apr 2017. The likely cut would come amidst the company’s asset repositioning and property sales.
Specifically, Liberty Property anticipates rent growth in both industrial as well as office assets next year, which is likely to drive the performance of its same-store properties. The company estimates industrial rents to grow 9–11%, while industrial portfolio to operate at near full occupancy.
Further, in 2017, the company expects $400–$500 million in development starts at high yields. This would include wholly owned properties, mainly industrial assets. Moreover, the company expects selective acquisition scopes stirred by the national industrial platform.
However, the company projects a reduction in dispositions in 2017, following several years of asset sales pertaining to asset repositioning efforts. Specifically, it estimates around $200–$350 million worth of dispositions in the next year and expects to fund development and acquisition activities with the proceeds.
Liberty Property is expected to benefit from its portfolio of superior industrial and office properties and decent balance sheet. In fact, fundamentals of the industrial market remain strong, backed by growing demand for industrial properties amid e-commerce boom and limited supply, which is leading to decent rent growth, increased occupancy and development opportunities.
Further, the company has been aiming at divesting its non-core properties and using the dry powder for gaining the preferred properties across the U.S. Notably, following the end of the third quarter, Liberty Property accomplished the sale of a portfolio of non-core suburban properties for $969 million. Majority of them were suburban offices and flex non-core assets and the move is a strategic fit for the long term.
Yet near-term earnings dilutive effects of divestiture, operational risks associated with huge construction pipeline and any rise in interest rates remain concerns.
Liberty Property currently has a Zacks Rank #3 (Hold). Year to date, shares of Liberty Property ascended 30.6% against the Zacks categorized REIT – Equity Trust – Other industry’s gain of 4.7%.
For Urban Edge Properties, the expected growth rate for FFO per share is 37.6% for 2016 and 6.3% for 2017.
DCT Industrial delivered an average positive surprise of 5.18% over the trailing four quarters.
Prologis has exceeded estimates in each of the trailing four quarters, with an average beat of 3.15%.
Note: All EPS numbers presented in this write up represent funds from operations (“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.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Liberty Property Gives 2017 FFO View, Dividend Cut Likely
Liberty Property Trust expects its 2017 funds from operations (FFO) per share to range between $2.40 and $2.52. Further, this Malvern, PA-based real estate investment trust (REIT) has reaffirmed its 2016 FFO per share guidance in the range of $2.36–$2.38 per share. The Zacks Consensus Estimate for 2017 FFO per share is currently pegged at $2.46 and the 2016 estimate for the same is $2.37.
However, the company expects a cut in its quarterly dividend to 40 cents from a payout of 47.5 cents, beginning the first-quarter 2017 payout in Apr 2017. The likely cut would come amidst the company’s asset repositioning and property sales.
Specifically, Liberty Property anticipates rent growth in both industrial as well as office assets next year, which is likely to drive the performance of its same-store properties. The company estimates industrial rents to grow 9–11%, while industrial portfolio to operate at near full occupancy.
Further, in 2017, the company expects $400–$500 million in development starts at high yields. This would include wholly owned properties, mainly industrial assets. Moreover, the company expects selective acquisition scopes stirred by the national industrial platform.
However, the company projects a reduction in dispositions in 2017, following several years of asset sales pertaining to asset repositioning efforts. Specifically, it estimates around $200–$350 million worth of dispositions in the next year and expects to fund development and acquisition activities with the proceeds.
Liberty Property is expected to benefit from its portfolio of superior industrial and office properties and decent balance sheet. In fact, fundamentals of the industrial market remain strong, backed by growing demand for industrial properties amid e-commerce boom and limited supply, which is leading to decent rent growth, increased occupancy and development opportunities.
Further, the company has been aiming at divesting its non-core properties and using the dry powder for gaining the preferred properties across the U.S. Notably, following the end of the third quarter, Liberty Property accomplished the sale of a portfolio of non-core suburban properties for $969 million. Majority of them were suburban offices and flex non-core assets and the move is a strategic fit for the long term.
Yet near-term earnings dilutive effects of divestiture, operational risks associated with huge construction pipeline and any rise in interest rates remain concerns.
Liberty Property currently has a Zacks Rank #3 (Hold). Year to date, shares of Liberty Property ascended 30.6% against the Zacks categorized REIT – Equity Trust – Other industry’s gain of 4.7%.
Investors interested in the REIT industry can consider stocks like Urban Edge Properties (UE - Free Report) , DCT Industrial Trust and Prologis Inc. (PLD - Free Report) . Each of these stocks has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For Urban Edge Properties, the expected growth rate for FFO per share is 37.6% for 2016 and 6.3% for 2017.
DCT Industrial delivered an average positive surprise of 5.18% over the trailing four quarters.
Prologis has exceeded estimates in each of the trailing four quarters, with an average beat of 3.15%.
Note: All EPS numbers presented in this write up represent funds from operations (“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.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>