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Liberty Property Prices Senior Notes

by Zacks Equity Research

December 11, 2012 | Comments : 0 Recommended this article: (0)

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A subsidiary of Liberty Property Trust ( LRY - Analyst Report ) , a real estate investment trust (REIT), recently priced an underwritten public offering of $300 million worth of 3.375% senior unsecured notes.The notes are scheduled to mature in June 2023 to yield 3.386% to maturity.

The proceeds from the offering are expected to be utilized to repay debt under the company’s revolving credit facility and for other general corporate purposes.

Earlier in the third quarter of 2012, Liberty Property repaid 6.375% Senior Notes totalling $230.1 million. At the end of third quarter 2012, Liberty Property had nearly $34.1 million in cash and cash equivalents. The companymaintains a balanced and flexible balance sheet with ample liquidity and minimal debt maturities that enable it to capitalize on potential opportunities to fuel top-line growth.

Liberty Property reported third quarter 2012 FFO (funds from operations) of $77.6 million or 64 cents per share compared with $ 77.1 million or 64 cents in the year-earlier quarter.

Based in Pennsylvania, Liberty Property provides leasing, property management, development, construction management, design management, and related services for a portfolio of industrial and office properties. The company is continuing with its portfolio repositioning program as it focuses on higher growth markets characterized by better job and rent growth prospects.

Liberty Property currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term Neutral recommendation on the stock. One of its competitors, Duke Realty Corp. ( DRE - Analyst Report ) also carries a Zacks #3 Rank.

Note: Fund from operations, 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.

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