Liberty Property Trust Announces Fourth Quarter And Full Year Results

    Liberty Property Trust Announces Fourth Quarter And Full Year Results

PR Newswire

MALVERN, Pa., Feb. 5, 2013

MALVERN, Pa., Feb. 5, 2013 /PRNewswire/-- Liberty Property Trust reported
that funds from operations available to common shareholders (diluted) ("FFO")
for the fourth quarter of 2012 was $0.63 per share, compared to $0.63 per
share for the fourth quarter of 2011.

For the year ended December 31, 2012, FFO per share was $2.58, and included
$5.0 million in termination fees. This compares to FFO of $2.61 per share for
2011, which included $4.1 million in termination fees.

Net income per common share (diluted) was $0.32 per share for the quarter
ended December 31, 2012, compared to $0.30 per share (diluted) for the quarter
ended December 31, 2011. Net income for the full year 2012 was $1.17 per
common share, compared with $1.59 per share for 2011.

"Over the past two years, Liberty has made great strides in enhancing our
portfolio quality and market position, and our portfolio continues to perform
well in an unpredictable market," said Bill Hankowsky, chairman and chief
executive officer. "Although economic uncertainty continues to constrain
decision making, there is pent-up demand in the marketplace, and we expect
this demand could more positively affect occupancies and development
opportunities as the year goes on."

Portfolio Performance

Leasing: At December 31, 2012, Liberty's in-service portfolio of 81.3 million
square feet was 92.1% occupied, compared to 91.8% at the end of the third
quarter. During the quarter, Liberty completed lease transactions totaling 4.9
million square feet of space. Liberty leased 18.5 million square feet in 2012.

Same Store Performance: Property level operating income for same store
properties decreased by 0.2% on a cash basis and decreased by0.3% on a
straight line basis for the fourth quarter of 2012 compared to the same
quarter in 2011 and decreased by 0.3% on a cash basis and decreased by 0.8% on
a straight line basis for the full year 2012 compared to 2011.

Capital Activities and Balance Sheet Management

Property Sales: During the fourth quarter,  Liberty sold two operating
properties, which contained 257,000 square feet of leasable space for $17.7
million. The properties were 61.9% leased at the time of the sale.

Senior Unsecured Notes: During the fourth quarter, Liberty issued $300 million
of 10 ½ year 3.375% Senior Unsecured Notes. The net proceeds were used to
repay borrowings under the company's unsecured credit facility and for general
corporate purposes.

Real Estate Investments

Acquisitions: During the quarter, Liberty acquired 22 industrial properties
for $176.3 million. The properties total 3.5 million square feet of leasable
space, and are 92.5% leased at a current yield of 6.8%.

Development: In the fourth quarter, Liberty brought into service five
development properties for a total investment of $44.1 million. The properties
contain 290,000 square feet of leasable space and were 77.0% occupied and
97.7% leased as of December 31, 2012. The current yield on these properties is
8.5% and the projected stabilized yield is 10.5%.

Also during the quarter, Liberty began development on one property for a
projected investment of $11.6 million. The property is a 181,000 square foot
industrial build-to-suit for GAC Industries in Houston, TX.

Subsequent Events

Liberty has announced that it will begin development during the first quarter
of 3 Quarry Ridge, a 200,000 square foot office building in Malvern,
Pennsylvania. The property is 100% leased to the Vanguard Group and represents
an investment of $55 million.

About the Company

Liberty Property Trust (NYSE: LRY) is a leader in commercial real estate,
serving customers in the United States and United Kingdom, through the
development, acquisition, ownership and management of superior office and
industrial properties. Liberty's 81 million square foot portfolio includes 680
properties which provide office, distribution and light manufacturing
facilities to 1,800 tenants.

Additional information about the Company, including Liberty's Quarterly
Supplemental Package with detailed financial information is available in the
Investors section of the Company's web site at www.libertyproperty.com. If you
are unable to access the web site, a copy of the supplemental package may be
obtained by contacting Liberty by phone at 610-648-1704, or by e-mail to
jleonard@libertyproperty.com.

Liberty will host a conference call during which management will discuss
fourth quarter results, on Tuesday, February 5, 2013, at 1 p.m. Eastern Time.
To access the conference call, please dial 855-277-7530. The passcode needed
for access is 91553147. A replay of the call will be available until March 5,
2013, by dialing 1-855-859-2056 using the same passcode as above. The call can
also be accessed via the Internet on the Investors page of Liberty's web site
at www.libertyproperty.com.

The statements contained in this press release may include forward-looking
statements within the meaning of the federal securities law. Although Liberty
believes that the expectations reflected in such forward-looking statements
are based on reasonable assumptions, it can give no assurance that its
expectations will be achieved. As forward-looking statements, these
statements involve risks, uncertainties and other factors that could cause
actual results to differ materially from the expected results. These factors
include, without limitation, the uncertainties affecting real estate
businesses generally (such as entry into new leases, renewals of leases and
dependence on tenants' business operations), risks relating to our ability to
maintain and increase property occupancy and rental rates, the financial
condition of tenants, the uncertainties of real estate development and
construction activity, the costs and availability of financing, the effects of
local economic and market conditions, regulatory changes, potential liability
relative to environmental matters and other risks and uncertainties detailed
in the company's filings with the Securities and Exchange Commission. The
company assumes no obligation to update or supplement forward-looking
statements that become untrue because of subsequent events.



Liberty Property Trust
Statement of Operations
December 31, 2012
(Unaudited and in thousands, except per share amounts)
                        Quarter Ended            Year ended
                        December     December      December 31,   December 31,
                        31, 2012     31, 2011      2012           2011
Operating Revenue
                        $       $        $         $     
Rental                                            
                          121,709    118,171     478,835      464,053
 Operating expense     54,518       50,533        206,717        199,188
reimbursement
  Total operating      176,227      168,704       685,552        663,241
  revenue
Operating Expenses
 Rental property       37,704       34,105        133,630        125,761
Real estate taxes     18,407       18,336        79,859         76,982
General and            18,286       16,547        64,730         59,367
administrative
Depreciation and       42,923       39,994        165,628        156,242
amortization
  Total operating      117,320      108,982       443,847        418,352
  expenses
  Operating Income    58,907       59,722        241,705        244,889
Other Income/Expense
Interest and other   1,320        1,472         9,289          8,389
Interest             (29,738)     (29,510)      (119,630)      (120,718)
  Total other          (28,418)     (28,038)      (110,341)      (112,329)
  income/expense
Income before
property dispositions,
income taxes,
noncontrolling
interest
 and equity in
earnings of             30,489       31,684        131,364        132,560
unconsolidated joint
ventures
Gain on property       1,305        1,664         4,123          5,025
dispositions
Income taxes          (331)        (51)          (976)          (1,020)
Equity in earnings
(loss) of               716          1,026         (681)          3,496
unconsolidated joint
ventures
Income from            32,179       34,323        133,830        140,061
continuing operations
Discontinued
operations (including
net gains on property
dispositions of
  $8,837 and $5,860
  for the quarters
  ended December 31,
  2012 and 2011 and
  net gains of          8,392        6,922         13,921         70,649

  $11,383 and $60,582
  for the years ended
  December 31, 2012
  and 2011)
Net Income            40,571       41,245        147,751        210,710
  Noncontrolling
  interest - operating  (2,416)      (6,453)       (10,590)       (27,222)
  partnerships
  Noncontrolling
  interest -            275          -             275            511
  consolidated joint
  ventures
Net Income available   $       $        $         $     
to common                                            
shareholders                              137,436      183,999
                        38,430       34,792
                        $       $        $         $     
  Net income                                       
                                               147,751      210,710
                        40,571       41,245
  Other comprehensive  389          (217)         3,436          (281)
  income (loss)
Comprehensive income  40,960       41,028        151,187        210,429
  Less: comprehensive
  income attributable   (2,153)      (6,446)       (10,422)       (26,705)
  to noncontrolling
  interest
Comprehensive income   $       $        $         $     
attributable to common                               
shareholders                                  140,765      183,724
                        38,807       34,582
Basic income per
common share
                        $       $        $         $     
  Continuing                                        
  operations                                          
                        0.26         0.24          1.06           1.00
                        $       $        $         $     
  Discontinued                                      
  operations                                          
                        0.07         0.06          0.12           0.60
                        $       $        $         $     
Total basic income                                  
per common share                                      
                        0.33         0.30          1.18           1.60
Diluted income per
common share
                        $       $        $         $     
  Continuing                                        
  operations                                          
                        0.25         0.24          1.06           1.00
                        $       $        $         $     
  Discontinued                                      
  operations                                          
                        0.07         0.06          0.11           0.59
                        $       $        $         $     
Total diluted income                                
per common share                                      
                        0.32         0.30          1.17           1.59
Weighted average
shares
  Basic               117,556      115,373       116,863        114,755
  Diluted             118,378      116,090       117,694        115,503
Amounts attributable
to common
shareholders
  Income from          $       $        $         $     
  continuing                                         
  operations                                  123,945      115,653
                        30,293       28,090
  Discontinued         8,137        6,702         13,491         68,346
  operations
                        $       $        $         $     
  Net income                                       
                                               137,436      183,999
                        38,430       34,792





Liberty Property Trust
Statement of Funds From Operations
December 31, 2012
(Unaudited and in thousands, except per share amounts)
                           Quarter Ended                         Year ended
                           December 31, 2012   December 31, 2011   December 31, 2012    December 31, 2011
                                   Per                Per                 Per                 Per
                                   Weighted            Weighted             Weighted             Weighted
                                   Average          Average           Average           Average
                           Dollars Share       Dollars Share       Dollars  Share       Dollars  Share
Reconciliation of net
income to FFO - basic:
Basic - income available  $    $       $    $       $     $       $     $    
to common shareholders           0.33                137,436   1.18    183,999   1.60
                           38,430             34,792    0.30
Adjustments:
Depreciation and
amortization of            3,413               3,549               14,152               14,452
unconsolidated joint
ventures
Depreciation and          42,518              42,123              164,615              168,435
amortization
Gain on property          (8,265)             (6,066)             (7,589)              (61,198)
dispositions/impairment
Noncontrolling interest
share in addback for
depreciation and
amortization
 and gain on property     (1,145)             (1,258)             (5,286)              (3,926)
 dispositions/impairment
Funds from operations     $    $       $    $       $     $       $     $    
available to common               0.64                303,328   2.60    301,762   2.63
shareholders - basic      74,951             73,140    0.63
Reconciliation of net
income to FFO - diluted:
Diluted - income          $    $       $    $       $     $       $     $    
available to common               0.32                137,436   1.17    183,999   1.59
shareholders              38,430             34,792    0.30
Adjustments:
Depreciation and
amortization of            3,413               3,549               14,152               14,452
unconsolidated joint
ventures
Depreciation and          42,518              42,123              164,615              168,435
amortization
Gain on property          (8,265)             (6,066)             (7,589)              (61,198)
dispositions/impairment
Noncontrolling interest
excluding preferred unit   1,205               1,143               4,378                6,153
distributions
Funds from operations     $    $       $    $       $     $       $     $    
available to common               0.63                312,992   2.58    311,841   2.61
shareholders - diluted    77,301             75,541    0.63
Reconciliation of
weighted average shares:
Weighted average common
shares - all basic         117,556             115,373             116,863              114,755
calculations
Dilutive shares for long  822                 717                 831                  748
term compensation plans
Diluted shares for net    118,378             116,090             117,694              115,503
income calculations
Weighted average common   3,728               3,809               3,760                3,869
units
Diluted shares for Funds
from operations            122,106             119,899             121,454              119,372
calculations
The Company believes that the calculation of Funds from operations is helpful to investors and management
as it is a measure of the Company's operating performance that excludes depreciation and amortization and
gains and losses from property dispositions. As a result, year over year comparison of Funds from
operations reflects the impact on operations from trends in occupancy rates, rental rates, operating costs,
development activities, general and administrative expenses, and interest costs, providing perspective not
immediately apparent from net income. In addition, management believes that Funds from operations provides
useful information to the investment community about the Company's financial performance when compared to
other REITs since Funds from operations is generally recognized as the standard for reporting the operating
performance of a REIT. Funds from operations available to common shareholders is defined by NAREIT as net
income (computed in accordance with generally accepted accounting principles ("GAAP")), excluding gains (or
losses) from sales of property, plus depreciation and amortization, and after adjustments for
unconsolidated partnerships and joint ventures. Funds from operations available to common shareholders does
not represent net income or cash flows from operations as defined by GAAP and does not necessarily indicate
that cash flows will be sufficient to fund cash needs. It should not be considered as an alternative to net
income as an indicator of the Company's operating performance or to cash flows as a measure of liquidity.
Funds from operations available to common shareholders also does not represent cash flows generated from
operating, investing or financing activities as defined by GAAP.





Liberty Property Trust
Balance Sheet
December 31, 2012
(Unaudited and in thousands, except share and unit amounts)
                                        December 31, 2012   December 31, 2011
Assets
Real estate:
     Land and land improvements         $           $        
                                            900,501         852,785
     Building and improvements          4,353,433           4,092,056
     Less: accumulated depreciation     (1,170,030)         (1,047,336)
Operating real estate                   4,083,904           3,897,505
Development in progress                 248,602             88,848
Land held for development               258,324             219,375
Net real estate                         4,590,830           4,205,728
Cash and cash equivalents               38,356              18,204
Restricted cash                         33,147              63,659
Accounts receivable                     8,988               8,192
Deferred rent receivable                108,628             102,613
Deferred financing and leasing costs,
net of accumulated
     amortization (2012, $136,706;      141,245             129,614
     2011, $123,557)
Investments in and advances to          169,021             174,687
unconsolidated joint ventures
Assets held for sale                  -                   210,790
Prepaid expenses and other assets       87,756              76,186
Total assets                            $           $        
                                          5,177,971        4,989,673
Liabilities
Mortgage loans                          $           $        
                                            302,855         290,819
Unsecured notes                         2,262,543           1,792,643
Credit facility                         92,000              139,400
Accounts payable                       31,058              23,418
Accrued interest                        20,164              24,147
Dividend and distributions payable      58,038              56,958
Other liabilities                       185,956             194,995
Total liabilities                       2,952,614           2,522,380
Noncontrolling interest - operating
partnership - 301,483 preferred units
     outstanding as of December 31,     7,537               7,537
     2012 and December 31, 2011
Equity
Shareholders' equity:
Common shares of beneficial interest,
$.001 par value, 183,987,000 shares
     authorized, 119,720,776 (includes
     1,249,909 in treasury) and
     117,352,353
     (includes 1,249,909 in treasury)
     shares issued and outstanding as
     of
     December 31, 2012 and December     119                 117
     31, 2011, respectively
Additional paid-in capital              2,687,701           2,617,355
Accumulated other comprehensive         2,900               (429)
income (loss)
Distributions in excess of net income   (547,757)           (461,498)
Common shares in treasury, at cost,
1,249,909 shares as of
     December 31, 2012 and December     (51,951)            (51,951)
     31, 2011
Total shareholders' equity              2,091,012           2,103,594
Noncontrolling interest - operating
partnership
     3,713,851 and 3,808,746 common
     units outstanding as of December
     31, 2012
           and December 31, 2011,       60,223              64,428
           respectively
     1,290,000 and 9,740,000 preferred
     units outstanding as of December
     31, 2012
           and December 31, 2011,       63,264              287,959
           respectively
Noncontrolling interest -               3,321               3,775
consolidated joint ventures
Total equity                            2,217,820           2,459,756
Total liabilities, noncontrolling       $           $        
interest - operating partnership &        5,177,971        4,989,673
equity

SOURCE Liberty Property Trust

Website: http://www.libertyproperty.com
Contact: Jeanne A. Leonard, Liberty Property Trust, +1-610-648-1704
 
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