Liberty Property Soars to New 52-Week High - Analyst Blog
03 April 2013 - 9:57PM
Zacks
Shares of Liberty Property Trust (LRY) touched
a 52-week high of $41.45 on Tuesday, Apr 2, 2013, as it gained
momentum from decent fourth-quarter 2012 results. The closing price
of this office real estate investment trust (REIT) on Apr 2, 2013
was $40.64, representing a solid year-to-date return of 14%. The
average trading volume over the last 3 months was 2.05 million
shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold)
stock has plenty of upside left given its strong fundamentals and
strategic portfolio repositioning efforts.
Growth Drivers
Liberty Property reported improved fourth-quarter 2012 results
with core FFO (funds from operations) in line with and revenues
beating the Zacks Consensus Estimate. Even in the backdrop of
uneven economic conditions, the results were benefited by portfolio
repositioning activity.
The company’s recent efforts to boost its portfolio
restructuring initiatives are also encouraging. Last month, it
divested a Philadelphia-based office property and in Feb it
unveiled its plan to construct an office building for The Vanguard
Group in Malvern, Pa. We expect these activities to facilitate
Liberty Property to focus on high-end markets characterized by
better job and rent growth prospects and boost the company’s
top-line growth.
On Feb 5, Liberty Property reported fourth-quarter 2012 FFO of
63 cents per share, in line with the Zacks Consensus Estimate as
well as the prior-year quarter. The results were attributable to
the strong acquisitions and development activities, slightly
affected by uncertain economic conditions. For full year 2012,
Liberty Property reported FFO of $2.58 per share, well ahead of the
Zacks Consensus Estimate of $2.52. Yet, it was slightly below the
prior-year FFO of $2.61 per share.
Estimate Revisions
Over the last 30 days, the Zacks Consensus Estimate for
full-year 2013 and 2014 have remained unchanged at $2.65 and $2.80
per share, respectively.
On Apr 2, a number of other REITs also crafted 52-week highs.
These include DDR Corp. (DDR), Kimco
Realty Corp. (KIM) and Duke Realty Corp.
(DRE).
Note: Funds from operations, a widely accepted and reported
measure of REITs performance, are derived by adding depreciation,
amortization and other non-cash expenses to net income.
DDR CORP (DDR): Free Stock Analysis Report
DUKE REALTY CP (DRE): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
LIBERTY PPTY TR (LRY): Free Stock Analysis Report
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