It has been about a month since the last earnings report for Liberty Property Trust . Shares have added about 1.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Liberty Beats Q1 FFO & Revenue Estimates
Liberty Property reported better-than-expected FFO per share and revenues for first-quarter 2017. The company came up with FFO per share of $0.60, which surpassed the Zacks Consensus Estimate of $0.58. Total operating revenue of around $175.4 million also came ahead of the Zacks Consensus Estimate of $175.3 million.
However, on a year-over-year basis, the company’s FFO per share reported a decline of $0.02 from the year-ago quarter. Also, total operating revenue declined 7.8% year over year.
Quarter in Detail
During the reported quarter, Liberty Property accomplished lease deals for 6.7 million square feet of space. Further, as of Mar 31, 2017, occupancy at the company’s operating portfolio, spanning 98.2 million square feet, contracted 30 basis points (bps) sequentially to 96.1%.
The industrial portfolio, spanning 91.7 million square feet, was leased 96.6% at the end of the quarter, reflecting a contraction of 10 bps from the prior quarter. However, industrial distribution rents escalated 17.8% on renewal and replacement leases during the quarter.
On the other hand, the office portfolio, comprising 6.6 million square feet, had occupancy of 88.4%, down from 92.0% from the prior quarter. This was due to two anticipated tenant move-outs. However, office rents increased 11.6% on renewal and replacement leases.
Same-store properties’ operating income increased 1.2% year over year on a cash basis and 0.7% on a straight-line basis. Additionally, same-store operating income for the industrial portfolio increased 2.4% on a cash basis and 2.0% on a straight-line basis. However, same-store operating income for the office portfolio decreased 4.9% on a cash basis and 5.8% on a straight-line basis, reflecting the two tenant move-outs.
Liberty Property exited first-quarter 2017 with cash and cash equivalents of around $36.5 million, down from $43.6 million at the end of the prior year.
Portfolio Activity
During the first quarter, one wholly owned development property was brought into service by Liberty Property, for an aggregate investment of $16.3 million. The property comprised 215,000 square feet of leasable space and was 81.7% occupied at the end of the quarter.
Furthermore, the company began development of four wholly owned properties which included an industrial build-to-suit and three inventory industrial buildings. These properties aggregate 777,000 square feet of leasable space and involve projected investment of $84.4 million.
On the other hand, during the reported quarter, the company sold one 33,000 square feet suburban office building for $2.1 million.
Outlook
Liberty Property updated its guidance and now expects full-year 2017 FFO per share in the range of $2.42–$2.52, against $2.40–$2.52 guided earlier.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter
Liberty Property Trust Price and Consensus
VGM Scores
At this time, Liberty Property's stock has a subpar Growth Score of 'D'. However, its Momentum is doing a bit better with a 'C'. The stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum investors based on our style scores.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision is net zero. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.
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Why Is Liberty Property (LPT) Up 1.6% Since the Last Earnings Report?
It has been about a month since the last earnings report for Liberty Property Trust . Shares have added about 1.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Liberty Beats Q1 FFO & Revenue Estimates
Liberty Property reported better-than-expected FFO per share and revenues for first-quarter 2017. The company came up with FFO per share of $0.60, which surpassed the Zacks Consensus Estimate of $0.58. Total operating revenue of around $175.4 million also came ahead of the Zacks Consensus Estimate of $175.3 million.
However, on a year-over-year basis, the company’s FFO per share reported a decline of $0.02 from the year-ago quarter. Also, total operating revenue declined 7.8% year over year.
Quarter in Detail
During the reported quarter, Liberty Property accomplished lease deals for 6.7 million square feet of space. Further, as of Mar 31, 2017, occupancy at the company’s operating portfolio, spanning 98.2 million square feet, contracted 30 basis points (bps) sequentially to 96.1%.
The industrial portfolio, spanning 91.7 million square feet, was leased 96.6% at the end of the quarter, reflecting a contraction of 10 bps from the prior quarter. However, industrial distribution rents escalated 17.8% on renewal and replacement leases during the quarter.
On the other hand, the office portfolio, comprising 6.6 million square feet, had occupancy of 88.4%, down from 92.0% from the prior quarter. This was due to two anticipated tenant move-outs. However, office rents increased 11.6% on renewal and replacement leases.
Same-store properties’ operating income increased 1.2% year over year on a cash basis and 0.7% on a straight-line basis. Additionally, same-store operating income for the industrial portfolio increased 2.4% on a cash basis and 2.0% on a straight-line basis. However, same-store operating income for the office portfolio decreased 4.9% on a cash basis and 5.8% on a straight-line basis, reflecting the two tenant move-outs.
Liberty Property exited first-quarter 2017 with cash and cash equivalents of around $36.5 million, down from $43.6 million at the end of the prior year.
Portfolio Activity
During the first quarter, one wholly owned development property was brought into service by Liberty Property, for an aggregate investment of $16.3 million. The property comprised 215,000 square feet of leasable space and was 81.7% occupied at the end of the quarter.
Furthermore, the company began development of four wholly owned properties which included an industrial build-to-suit and three inventory industrial buildings. These properties aggregate 777,000 square feet of leasable space and involve projected investment of $84.4 million.
On the other hand, during the reported quarter, the company sold one 33,000 square feet suburban office building for $2.1 million.
Outlook
Liberty Property updated its guidance and now expects full-year 2017 FFO per share in the range of $2.42–$2.52, against $2.40–$2.52 guided earlier.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter
Liberty Property Trust Price and Consensus
Liberty Property Trust Price and Consensus | Liberty Property Trust Quote
VGM Scores
At this time, Liberty Property's stock has a subpar Growth Score of 'D'. However, its Momentum is doing a bit better with a 'C'. The stock was allocated a grade of 'D' on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum investors based on our style scores.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision is net zero. Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.